2013 L
L
GG3[�(�COM�D i
L
AUG 222014
L TOWN Or` '.NAPPINGER
TOWN CLERK
L
L
LTOWN OF WAPPINGER, NEW YORK
FINANCIAL STATEMENTS
L AS OF AND FOR THE YEAR ENDED
DECEMBER 31, 2013
L
L
L
G
4
L
i
5
F
r
L
L
L
L
TOWN OF WAPPINGER, NEW YORK
TABLE OF CONTENTS
DECEMBER 31, 2013
DESCRIPTION PAGE (SZ
@ Independent Auditors' Report..........................._........_....................................._......_................ 1-3
L Independent Auditors' Report on Internal Control Over Financial
Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance With Gove"iment Auditing Standards .._............_......_.._......._...._............._...._ 4-5
Management's Discussion and Analysis (unaudited)
For The Year Ended December 31, 2013 .._......................................._..................._............. 6-13
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Position—December 31, 2013.......... .................... ..... .............. 14
Statement of Activities and Changes in Net Position—For the Year Ended
December31, 2013................................................... _.................._................................. ......— 15
Fund Financial Statements:
Balance Sheet—Governmental Funds —December 31,2013......._............ _...._.. 16-17
[ Reconciliation of Governmental Funds Balance Sheet
Py To The Statement of Net Position— December 31, 2013........ ................._.........__.......18
Statement of Revenues, Expenditures and Changes
In Fund Balances- Governmental Funds—
For the Year Ended December 31, 2013 ............. ........................_ ............................. 19-20
Reconciliation of the Statement of Revenues, Expenditures and
Changes in Fund Balance of Governmental Funds to the
Statement of Activities—For the Year Ended December 31, 2013.... ...._.._.....-_._............._..21
_
Statement of Net Position— Fiduciary Fund—December 31, 2013 .... ............... ...._......_.__...._22
Notes to the Basic Financial Statements......................... ... ..................... ..........-................... 23-44
e
L
L
REQUIRED SUPPLEMENTAL INFORMATION:
LExhibit I
Budgetary Comparison Schedule -
General Fund. Highway Fund, Water Fund and Sewer Fund
For the Year Ended December 31, 2013 45-49
.............................................................................
Exhibit 11
Other Post-Employment Benefits Plan
Schedule of Funding Progress -December 3l, 2013 ...... ........._..._...._........_..................._.....50
OTHER SUPPLEMENTAL INFORMATION:
Exhibit III
Combining Balance Sheet — Non-Major
Governmental Funds — December 31, 2013 ..._ .......51
Exhibit IV
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances— Non-Major Govemmemal
Funds For the Year Ended December 31, 2013.... ................. ......... ...... ............... ......... ..... 52
Exhibit V
Schedule of Findings, Recommendations and Responses
�g For the Year Ended December 31, 2013 ........ ........ _.........._..........._..._........._....._...__..53-55
[L
g`
L
pL
i
i
L
ll
`1409 SEDORE ......
„� s , ,,, m Pa
& COMPANY i„ rte
G I IIH
CERTIFIED PUBLIC ACCOUNTANTS, P.C. i..,... n: cea
L :%ui,igatingYOUrSuccess
L
LINDEPENDENT At REPORT
To the Supervisor and
Members of the Town Board
Town of Wappmger, New York
20 Middlebush Road
LWappingers Falls, New York 12590
Report on the Financial Statements
L We have audited the accompanying financial statements of the governmental activities, each
major fund, and the aggregate remaining fund information of the Town of Wappinger, New
York, as of and for the year ended December 31, 2013, and the related notes to the financial
statements, which collectively comprise the Town's basic financial statements as listed in the
table of contents,.
LManagement's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
i Auditors'Responsibility
Yr Our responsibility is to express opinions on these financial statements based on our audit. We
t, conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor's
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error.
e Poughkeepsie Office
'(,78S....th Road Suim 101 PoughkccWie.Newl'ork 1201
'tel_ ti 1n5-Saul Pax 1.415)18.-n5i5 Email foCsedorecncom Web. 'edoreancom 1
r POUGHKEEPSIE •PORT JERVIS •HSHKILI.
L
L
LIn making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit
also includes evaluating the appropriateness of accounting policies used and the reasonableness
of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
LBasis forAdverse Opinion on Governmental Activities
As discussed in Note A.S.C, to the financial statements, the Town has not recorded certain
infrastructure assets in governmental activities and, accordingly, has not recorded depreciation
expense on those assets. Accounting principles generally accepted in the United States of
America require that those general infrastructure assets be capitalized and depreciated, which
would increase the assets, net assets, and expenses of the governmental activities. The amount
by which this departure would affect the assets and expenses of the governmental 'activities has
not been determined.
LAdverse Opinion
I In our opinion, because of the effects of the matter discussed in the preceding paragraph, the
financial statements of the governmental activities do not present fairly, in all material respects,
the respective financial position of the governmental activities, of the Town of Wappinger, New
York, as of December 31, 2013, or the changes in financial position for the year then ended.
16
Unnnodifned Opinions
LIn our opinion, the financial statements referred to previously present fairly, in all material
respects, the respective financial position of each major fund, and the aggregate remaining fund
information of the Town of Wappinger, New York, as of December 31, 2013, and the respective
changes in financial positron for the year then ended in conformity with accounting principles
generally accepted in the United States of America.
LOther Matters
LRequired Supplennentarp hl(ormation
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and other post-
employment benefits schedule of funding progress, as listed in the table of contents, be presented
to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
L considers it to be essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context.
L
pL
L We have applied certain limited procedures to the required supplementary information in
accordance with auditing standards generally accepted in the United States of America, which
consisted of inquiries of management about the methods of preparing the information and
comparing the information for consistency with management's responses to our inquiries, the
basic financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion
or provide any assurance.
LOther Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town of Wappmger, New York's basic financial statements. The
combining non-major fund financial statements are presented for purposes of additional analysis
Land are not a required part of the basic financial statements.
The combining non-major fund financial statements are the responsibility of management and
were derived from and relate directly to the underlying accounting and other records used to
prepare the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional
Lprocedures, including comparing Lind reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, Lind other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, the combining non-
major fund financial statements are fairly stated in all material respects in relation to the basic
Lfinancial statements as a whole.
L Other Reporting Required b}' Goremmemt Auditing Standards
LIn accordance with Government Auditing Standards, we have also issued our report dated August
12, 2014, on our consideration of the Town of Wappmger, New York's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Govenmrtemt
Auditing Standards in considering Town of Wappinger, New York's internal control over
Lfinancial reporting and compliance.
LPoughkeepsie, New York
R August 12,2014
L
L 3
L
SEDORE ""�"
„ rra
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS, P.C. Joiner L Sad.... 11 (F4
g Navigating PrjurSrEccess
L
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER
FINANCIAL. REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIALSTATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
16 To the Supervisor and
LMembers of the Town Board
G Town of Wappinger, New York
20 Middlebush Road
Wappingers Falls, New York 12590
LWe have audited, in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards issued by the Comptroller General of the United States, the financial statements of
governmental activities, each major fund, and the aggregate remaining fund information of the
Town of Wappinger, New York, as of and for the year ended December 31,2013, and the related
notes to the financial statements, which collectively comprise the Town of Wappinger, New
York's basic financial statements and have issued our report thereon dated August 12, 2014.
LInternal Control Over Financial Reporting
In planning and performing our audit, we considered the Town of Wappinger, New York's
internal control over financial reporting (internal control) to determine the audit procedures that
are appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements but not for the purpose of expressing an opinion on the effectiveness of the Town of
Wappinger, New York's internal control. Accordingly, we do not express an opinion on the
effectiveness of the Town of Wappinger, New York's internal control.
A deficiency in internal contra( exists when the design or operation of a control docs not allow
management or employees, in the normal course of performing their assigned functions to
prevent or detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
s
L
Poughkeepsie Office
L1675 South Road Suite 101 Poughkeepsie Aewl'orB 126o1 4
Tel. nl 485,--10 Fax: (8-1,4855517 Email ... @seA orcm.m..I web,i �do,,,a nm
POL'GHKEEPSIE •PORT JERVIS •FISHKILL
L
L
L
tp Our consideration of the internal control over financial reporting was for the limited purpose
6 described in the first paragraph of the section and was not designed to identify all deficiencies in
internal control that might be material weaknesses or significant deficiencies. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exist that have not been
identified. We did identify certain deficiencies in internal control, described in the accompanying
Schedule of Findings, Recommendations and Responses (Findings I, 2, and 3) that we consider
to be significant deficiencies.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Wappinger, New York's
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and, accordingly, we do not express such an opinion. The results of our
tests disclosed an instance of noncompliance or other matter that is required to be reported under
Government Auditing Standards and which is described in the accompanying Schedule of
Findings, Recommendations and Responses (Finding 4).
LTown of Wappinger, New York's Response to Findings
Town of Wappinger. New York's response to the findings identified in our audit is described in
the accompanying schedule of findings and questioned costs. Town of Wappinger, New York's
response was not subjected to the auditing procedures applied in the audit of the financial
statements and, accordingly, we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
the entity's internal control or on compliance. This report is an integral part of an audit
performed in accordance with Got,ernrnent Auditing Standards in considering the entity's
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Poughkeepsie, New York
August 12,2014
i
L 5
i
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31,2013
(Un-audited)
1. Overview of the Financial Statements
These Audited Financial Statements consist of five parts. The Independent Auditors' Report on
our Financial Statements, Management's Discussion and Analysis (this section), Government
Wide Financial Statements, Fund Financial Statements and Notes to the Financial Statements.
-Government-Wide Financial Statements provide both long term and short term information
about the Town's overall financial status. They report information about the Town as a whole
using accounting methods similar to private sector companies.
-Fund Financial Statements focus on the individual parts of Town government, reporting the
Town's operations in more detail than the Government—Wide Financial Statements. They focus
on the most significant or "major" funds-not the Town as a whole. See Note A in the notes to
the financial statements for information regarding individual types of funds.
-Notes to the Financial Statements provide further explanation and support for the information
contained in the Financial Statements.
2. Financial Analysis of the Town as a whole
Assets 2013 2012 Change
Nun-Capital $ 11,089,3(17 $12,814,526 S(1,725219)
Capital 35,423,465 30,865398 4.558,067
Total Assets 46,512,772 43,679,924 2,932,84X
Deterred Outtlow tit Resources 508,283 385,130 123,153
Total Assets and Deferred Outflow of Resources 547,021,055 $44,065,054 $ 2.956,001
Liabilities
Current $ 6,889,017 $10,790,666 5(3,9(11,649)
Non-Current 21494,890 23.323,797 (1,828,907)
Total Liabilities 28383,907 34,114,463 (5,730,556)
Deferred lntlou or Resources 28,346 319496 (3,150)
c
b
'total Liabilities and Deferred Inflow of Resources 28412,253 34,145,959 (_, __. )
i` Net Position
Capital 18,033,288 13,666,110 4367.178
Restricted 1378,721 405,970 972,751
Unresuicied (803,207) (4,152,985) 3.349 778
Total Net Position 1816081802 91919,095 H 689,707
g Total Liabilities and Net Position $47.021,055 $44,065.054 S 2.956,001
yY 6
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31,2013, Cont'd.
L (Un-audited)
Revenues 2013 2012 Change
Program
Fines, Fee, & Charges $ 4,394,847 $ 3,969,918 $ 424,929
Operating Grants 5,697 3,534 2,163
Capital Grant,
6,444,817 981,679 5.463.138
General Revenues
g Property Taxes 7,876,693 7,737.721 138,972
{ Other Taxes 2,051,173 2,234,296 (183,123)
i Investment Earnings 426,602 409,940 16,662
Other Grants and Contributions 646,900 266,900 380,000
Other Revenues 189,022 242,994 (53,972)
Total Revenues 22,035,751 15,846 x)82 6,188.769
Expenses
General Govemment Support 2,423,029 2, 509,754 (86,725)
Public Safety 680,188 255,140 425,048
Health 398,277 400,525 (2,248)
Transportation
3,704,525 3,819,088 (114,563)
Economic Assistance 4,352 5,703 (1,351)
Culture and Recreation 786,866 823,233 (36,367)
Home and Community Service 4,419,200 4,249,145 170,055
Other 929,607 1,036,714 (107,107)
Total Expenses 13,346,044 13,099,302 246,742
p Change in Net Position S 8,689,707 $ 2,747,680 $ 5,942,027
Governmental Funds:
GENERAL FUND
The majority of activity for the Town is presented in the General Funds, Town-Wide and
Part-Town. Fund Balance for the General Funds increased by $1,592,830 and $361,996 from
2012 to 2013 respectively. The main reason for the strong surplus in 2013 was prudent
budgetary practices, better than expected sales and mortgage tax performance, and a Targe
one time subdivision fees for the Parklands Trust fund.
General Fund Balance for 2013 is $2,283,037- Town-Wide and $1,571,858 - Part-Town in
total of which $122,148 is non-spendable, $1,945,671 is restricted, $968,165 is assigned, and
5818,911 is unassigned.
L 7
L
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31,2013, Cont'd.
L (Un-audited)
The following charts describe significant categories of general fund revenues and expenses:
General Fund Revenues 2013
4%_
L ■Property Taxes&Tax Items
■State&Federal Aid !
i
r Sales and Franchise Tax i
4 ■Interest&Earnings
L ■Departmental Income
■Fines,Licenses and Permits
S 0All Other
L
g
L General Fund Expenses 2013
i
L
0% ■General Government Support
■Public Safety
F c Transportation
■Cnitnre and Recreation
L ■Home and community services
■Employee Benefits
L 40 -Debt Service
4% iaAll Other
@ j
pL
6
L
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
L Required Supplemental Information
For the Year Ended December 31, 2013, Cont'd.
L (Un-audited)
HIGHWAY FUND
The Highway Fund ended the year with $1,064,848 in Fund Balance, of which $296,638 is
non-spendable and $768,210 is assigned.
L The following charts describe the significant categories of highway fund revenues and
expenses:
I
Highway Fund Revenues 2013
0%
P ■Property Taxes
■Sales Tax
I
:. State&Federal Aid
I
■Other Revenue
too1
L i
I I
Highway Fund Expenses 2013
■Street Maintenance
C ■Permanent Road
L Improvements
c Snow Removal
■Other
Y ■Machinery Purchase
and Maintenance
■Employee Benefits
N Debt Service
i
6 2%
9
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31, 2013, Cont'd.
L (Un-audited)
WATER FUND
LThe Town operated four water districts during 2013 with an overall Fund Balance of
$1,728,688. Operating revenues totaled $2,021,664 with the expenses totaling $1,723,168
resulting in an excess of revenues over expenditures in the amount of $298,496. The modest
6 surplus is the result of management's determination to keep operating costs at or below the
budget.
L SEWER AND DRAINAGE FUNDS
The Town operated fourteen sewer and drainage districts during 2013, with an overall fund
balance of $1,748,148, the main sewer district being the United Wappinger Sewer District,
with a fund balance of $1,476,887. Operating revenues for the combined sewer and drainage
L districts totaled $3,978,980 with the expenses totaling $3,616,870 resulting in an excess of
revenues over expenditures in the amount of $362,110. The excess is the result of strong and
prudent budgeting practices.
L
BUDGETARY HIGHLIGHTS
LThe Town Budget is adopted in November each year for the following year and is modified
throughout the year as necessary. Variances in budgetary revenues and expenditures have
Lbeen explained in the paragraphs above.
3. Activities regarding capital assets, long and short term debt
LThe Town spent approximately $5.8 million dollars on five capital projects in 2013. The top
four projects were: Wappinger Water Main Extension project sponsored by New York City
Department of Environmental Protection (NYCDEP), Filtration of Atlas & Hilltop wells,
Wildwood drainage, and Wappinger Creek pump station. The four projects accounted for
ninety-nine percent (99 1,.) of the total capital expenditures.
LThe Town completed Phase I of the Wappinger Water Main Extension project in 2013. The
project involved the construction of the water main from United Wappinger Water District to
LF. NYCDEP Shaft 6 parcel on River Road at a cost of $5,754,274. In February 2014 the Town
Board authorized Phase 11 of the project which would install a new water distribution system
in the Chelsea Hamlet area.
L
r
r
t0
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31, 2013, Cont'd.
L (Un-audited)
Long Term Debt
The Town improved its credit rating in March 2014 to AA- by Standard & Poor's Ratings
Services up from a rating of AI issued by Moody's Investors Service in May 2011. The
improved rating was due to an overall strong budgetary performance, strong budgetary
flexibility, and adequate management with standard financial policies. The new rating will
allow for better competitive bidding and lower interest rates on future borrowing.
Total long term serial bond debt at the end of 2013 was $20,480,000. Of this debt4
$3,887,544 belongs to the General Fund and $2,641,365 to the Highway Fund. The majority
of the Town's debt relates to its water and sewer districts amounting to $7,362,210 and
$6,588,881, respectively. Water and sewer debt is paid by the property owners in the
respective districts.
In March 2013, the Town refinanced its vat ous purpose Public Improvement (Serial) Bonds
(2003), in the amount of $1,440,000 with a net present value potential savings in interest of
approximately b 129,000 over ten years.
In March 2014, the Town issued a Public Improvement (Serial) Bond for $1,398,000 from a
maturing Bond Anticipation Note, previously issued to pay for various objects of the Town
including road resurfacing, highway equipment, highway garage reconstruction, recreation
equipment, and the replacement of town hall boilers among other objects.
Short Term Debt
In September 2013, the Town issued a Bond anticipation Note in the amount of $1,580,000.
$580,000 of this Note was to pay for the cost of improvements to the W appinger Creek Pump
station located at the comer of Market Street and Franklindale Avenue of the Village of
Wappingers Falls, a facility of the Tri-Municipal Sewer Commission. $500,000 of the Note
was to pay pail of the cost of improvement of the United Wappinger Water District,
specifically the purchase and installation of cartridge filter facilities at the Atlas and Hilltop
Wells. The last $500,000 of the Note was to pay for the cost of construction of drainage
improvements at Wildwood Drive and Grainger Place. The Noce was renewed on March 27,
2014 for $1,580,000.
¢r
I
V
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31, 2013, Cont'd.
L (Un-audited)
g In June 2014, the Town issued another Bond Anticipation Note for $1,450,000 in connection
g with various objects. $700,000 of the Note was to pay part of the cost of the ongoing
L reconstruction of the Atlas and Hilltop Well Fields. The initial borrowing for the Well fields
was $500,000 in September 2013. The next $520,000 of the Note was to pay the cost of
reconstruction and/or resurfacing various Town streets. The last $230,000 of the Note was to
pay for the cost of highway equipment.
LThe Town has two Bond Anticipation Notes (BAN) totaling $3,030,000 outstanding as of
June 30, 2014. The $1,580,000 BAN, 2014 Series A issued at an interest rate of 1.00% per
annum is payable in full at maturity on March 27, 2015. The $1,450,000 BAN, 2014 Series B
issued at an interest rate of 0.57% per annum is payable in full at maturity on March 27,
2015.
L4. Currently Known Facts Bearing on the Future
The Town participated in the Southern Dutchess Consortium for the 2007 revaluation of
property assessments. The 2007 revaluation successfully brought all property assessments to
full valuation and provided equitable tax distribution among all homeowners within the town,
county and shared school districts. This revaluation went into effect for the 2008 tax levy and
has continued every year.
r The Town continues to have a shared service agreement with the Town of Fishkill for a Joint
LAssessor. This program is known as the Coordinated Assessment Program or CAP. The CAP
has and will continue to deliver cost.savings to the Town.
LThe Town is current with all tax certiorari cases to those filed in 2013, thereby limiting
unexpected retroactive exposures.
k
� The assessment roll established in 2013 for 2014 taxes resulted in homestead assessments
decreasing by an average of 425%. However, overall, the proportion of non-homestead to
homestead assessments changed by approximately I%. Non-homestead assessments for 2014
are 4317 of the total and homestead assessments are 57%, instead of 42% and 589, in 2013,
representing a shift in the tax burden away from homeowners to commercial properties. The
t Town adopted an overall tax levy increase of 1.66% in 2014 down from 1.83% in 2013.
€i
i
L
L
12
L
L
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31, 2013, Cont'd.
p (Un-audited)
L In June 2013, the Town signed a Memorandum of Agreement with CSEA for highway
employees covering the fiscal year 2013, with an agreement to open negotiations for wages
and longevity effective January 1, 2014 and January I, 2015. In January 2013, Town Hall
employees also secured a collective bargaining agreement with the Teamsters covering the
period 2011 through 2013. Negotiations with both unions are currently in progress and
expected to be concluded within weeks.
The Town is currently considering bonding for a project to replace its entire fleet of 2,500
water meters at a cost of approximately $750,000 due to potential problem of meter reading
equipment failure. Meters are essential in recording water consumption. In the absence of
these meters, every household/benefit unit would be billed a minimum, with potential for
huge revenue loss to the Town.
The Town is also considering bonding for $250,000 to replace the aging roof at the Town
Hall as well as bonding for $150,000 to construct a storage facility behind the Town Hall's
parking lot. The facility would be approximately 41 x 32 square foot concrete building, with
a 50 year life metal roof. Storing records on-site would allow for winterization of the off-site
carnwath building and save on heating costs.
In May 2012, The Town entered into an agreement with the NYCDEP to prepare design
plans and specifications and a Map, Plan and Report for the United Wappinger Water District
water main extension to the NYCDEP Shaft 6 parcel on River Road (Phase 1). The
installation and construction phase of the project commenced in October 2012 and was
finalized in May 2014 at a cost of $5,754,274. The Town's United Wappinger Water District
is expected to supply approximately 160,000 gallons of water per day to NYCDEP at a price
of approximately $180,000 a year. This additional revenue stream will help boost the
district's financial position. In June 2014, NYC DEP provided an initial funding of
$3,321,973 for Phase II construction, which will involve construction of the water main from
NYCDEP to the Chelsea Hamlet area.
A private developer paid $1,125,000 to the Town as subdivision fees in August 2013 to put
Lip 225 new homes within the Town. The construction of a few of the homes began in the
Fall of 2013. The developer also paid $243,000 as capital buy in fees to hook up the new
homes to the Town's existing water and sewer facilities.
L
6E 13
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF NET POSITION
L DECEMBER 31 2013
GOVGRNMENTAI.
ACTIVITIES
ASSETS
Cotter(assets:
Cash and cash equivalents S 8,541,268
Cash and tush equivalents.restricted 5.000
Reccnvbles(net) 2.123845
Inventoncs 168.819
Prepaid expenses 250375
Total comm assets 11,089 307
Capitol astitls'.
Lund 8.162217
Infrastructure,net of deprccianan 14,431.146
Buildings. machinery and egwprrem,net(it depreciation 6.561.460
Construction in progress 6,268,642
Total capital assets 35 423,465
Total assets 46,512,772
Deferred outflow of resnurres 508.281
LTotal assets and defeered outflow of resources S 47021,055
LIABILITIES
Current Liabilities:
Accounts payable $ 243,170
Accrued liabilities and manatee payable 129,920
Notes payable 3,127,843
Due to customers 11439
Deferred rnenuc 798,878
Due to other governments 38.050
Current portion of long-tens liabilities
Landfill remediation liability 8,717
Bonds payable-Capital 962,667
Bands payable-Noncapital 1367333
Taal current liabilities 6.889,017
Nnntivaent hor aloes:
Judgment and claims 80.000
iii��L Compensated absence liabilities 142,190
Other posamploymenl henefits liahibty 2,704042
Landfill remediation liability 222,458
Bonds payahlc-Capital 12.472.443
Bonds payable -Non-capital 5,677557
L
Toalnon-current liabilities 21,494,890
IL Total liabilities 29383.907
Deferred inflow of csources 29,346
LTotal liabilities and deferred innuw of resources 28,412253
NET POSITION
g hoc,wd in capital assets,net of related debt 18.013288
Restricted for recreation 1378,721
Unrestricted (803,207)
Total net position 18,609,902
Total liabilities and net position $ 47,021055
See independent auditors' report. 14
L
'f OWN OF WAPPINGER,NEW PORK
sTAI E:NIFN'f OF ACTIVITIES AND CHANGES IN NET POSITION
FOR I HE PEAR ENDED DECEMBER 31 2013
NET (EXPENSE)REVENUE
AND CHANGES IN
NET ASSETS
$ OPERATING CAPITAL
0Y CHARGES GRANTS AND GRANTS AND GOVERNMENTAL
FCNC'1'IONSAIROGRANIS EXPENSES FOR SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES
Government I Aclivilics:
Gcn....I oxcmmmnr support 5 2,423,029 S 18,918 5 5,699 S S (2.198414)
Pro,ellRly 68Q198 557,791 11123991
Health 398.297 4350 - - (191937)
Lan,111t,non 3,7(M,525 150 - 247.918 (l 456,517,
Emn t &oppam.ip 4,352 14.3521
Cultarc end roc ratoo 786,866 92598 LI?5_f100 430,932
Hnns and urn.narn,senll,5 4.419.200 3.9211140 - 5,071,979 4373.419
Im,rw(on on'. ,r.debt 929,607 - 191946091
Total gmernmentl u16viliu ❑,346.044 3394.849 5,697 6.444.819 6500.6831
General revenues
Cts"
Real prop..y to", 7,989,271
Reolpmp,n) Wx 1.1m 87412
Sales tax dlofrbo Lat 1,109,110
plan'a'r tax divnhotian 515.i46
Fmnddx I.xs 406,517
unrrSlri l,d1ncr31mrnl6nrn1nf5 426.602
Grxa1s and conainnnnne nM r,toctrd m sped.,prn'iams 646.900
Special atm Gain on sale of property and compensation for loss 4,694
Mizcullanalus IS4.Ii8
Total'cnrml axrnuu,sp,dal hums and Irenzfa' 11,190,390
Chani In net p.mlmn 8.6847119
N t poslGnn-ne'innlnc 9.119.534
Prior Ix,r (adjust.,.(, 999591
Nelpooloon-hrRSnnino rcHa¢d 4914095
`p No a),non-coding S IS 608,802
€F�
See independent auditors' report. 15
4
L
L
LCAPITAL, NON- TOTAL
WATER SEWER PROJECTS MAJOR GOVERNMENTAL
FUND FUND FUND FUNDS FUNDS
$1349,235 $1,000,859 $ 2,352,137 $ 90,180 $ 8,541,268
- 5,000 - 5,000
411,111 780,591 - - 1,191,702
- - _ - 209,846
- - 14,447 344,897
- 415,035
7,974 307,262
168,819
408 - - - 250,375
$1,760,754 $1,781,450 $ 2,357,137 5112,601 $ 11,434,304
$ 651 S 6.540 $ 51,314 $ 3,891 $ 243.170
3,345
- - 37,141 - 37,341
12.439 - - - 12,439
3,127,843 3,127,843
8,389 17,397 2,292 18,720 344,897
10,587 9,365 - - 38,050
796,675 798,878
32,066 33,302 4,015,465 22,611 4.605,963
408 - - - 419,194
164,050
_ - - - 402,900
,378,721
1.728,280 1,748,148 (1,658,328) 89,990 3,644,465
_ - - 818,911
1,728,688 1,748,148 (1,658,328) 89,990 6,828,241
$1,760,754 $1,781,450 $ 2,357,137 $ 112,601 S 11,434,204
t
L
See independent auditorsreport. 17
v
TOWN OF WAPPINGER, NEW YORK
RECONCILIATION OF GOVERNMENTAL. FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
DECEMBER 31,2013
i
L Total fund equity for governmental funds $ 6,929,241
Total net position reported for governmental activities in the statement
of net position are different because:
p Capital assets used in governmental activities are not
Fi financial resources and therefore are not reported in the funds. 35,423,465
p Longi term liabilities, including bonds payable,
EYE compensated absences, other postemployment benefits.
judgement and claims and landfill remediation
liabilities are not due and payable in the current period
and therefore are not reported in the funds. (23,833,607)
Grants received for capital assets are deferred and amortized over
L the life of the asset (28,346)
Residual fund balance from the Tri-Municipal Sewer
i► Commission is not reported in the funds. 508,293
Accrned interest is not reported in the funds. (289,234)
#[ Total net position of govemmental activities S 18,608,802
y{i
ypY
M
pS�
E4r
See independent auditors report. 18
TOWN OF WAPPINGER, NEW YORK
STATEMENT OF REVENUES,EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS ,r
FOR THE YEAR ENDED DECEMBER 31,2013
GENERAL. GENERAL
TOWN-WIDE PART-TOW'N HIGHWAY
FUND FUND FUND
REVENUES r
Real property taxes $ 2,442,658 $ - $ 2,641,219
Real property taxes items 87,361 - -
Non property taxes items - 1,062,792 452,835 j
Departmental income 177,081 160,739 -
Use of money and property 226,960 1,029 1,298
Licenses and permits 5,685 261,148 150 .y
Pines and forleitmes 248,323 -
Sale of property and compensation for loss 100 - 1,086
i
Miscellaneous local sources 1,137,332 11 695 .4
State aid 808,143 - 244,688
Total revenues 5,133,643 1,485,719 3,341,971
EXPENDITURES
General government support 1495,196 107,876 56,860
Public safet}, 31,298 412,632 - .�
Health 1,803 - -
Transportation 137,715 36,585 1,785,789
Economic assistance & opportunity 600 3,752 -
Culture and recreation 509,068 59,252
Home and community services 214,339 154,840 -
Employee benefits 625,664 221,684 712,203 .�
Debt service 525,130 128,102 359,907
Total expenditures 3,540,813 1,123,723 2,914,759
Excess of revenues over expenditures 1,592,830 351,996 427,212
Other financing sources:
Proceeds of debt - - -
BANs redeemed from appropriations - - -
Refundim,debt escrow payment - - -
Total other financing sources - - -
j
Excess of revenue and other sources r
over expenditures and other uses 1,592,830 361,996 427,212
1
Fund Balance, December 31,2012 674,592 1,209,862 637,636
Prior period adjustments 15,615 - - 9
Fund Balance, December 31,2012, Restated 690,207 1,209,862 637,636 •i
Fund Balance, December 31,2013 S 2,283,037 $ 1,571,858 $ 1,064,848
See independent auditorsreport. 19
L
L
L CAPITAL NON-
WATER SEWER PROJECTS MAJOR TOTAL.
LFUND FUND FUND FUNDS FUNDS
$ 719,434 $ 1,543,301 $ - $442,659 $7,789,271
61 87.422
L - - - - 1,515,627
1,183280 2,077,441 - 97,749 3,696,290
3,052 189,638 4,511 115 426.603
112,400 168,600 547,983
- - - 248,323
3,498 - - - 4,684
5,022,374 6,160,412
- _ - - 1,052,831
2,021,664 3,978,980 5,026,885 540,584 21,529,446
2,277 (672) 1.028,969 - 2,690,506
443,930
- 395,000 396,803
L
- - 158,752 45,066 2,163,907
Y - _ - - 4,352
- 567,320
1042,744 1,999,868 4,798,843 89,479 8,300,113
4,361 2.412 1,566,324
673,786 1,615,262 - - 3,302,187
6,870 5,986,564 529,545 19,435,442
L 1,723,168 3,61
298,496 362,110 (959,679) 11,039 2,094.004
i
i•
{ - - 1440,000 - 1,440000
115,531 115,531
L
- - 11,405,978) (1,405,978)
149,553 - 149,553
t
�r
298,496 362,110 (810,126) 11,039 2,243,557
L1,430,192 1,199,405 (848,202) 78,951 4,382,436
- 186,633 - - 202,248
1,430,192 1,386,038 (848,202) 78,951 4,584,684
L 51,728,688 $ 1,748,148 $ (1,658,328) $ 89,990 $6,828,241
See independent auditors' report. 20
6
TOWN OF W APPINGER,NEW YORK
RECONCILIATION OF STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31,2013
Nei ehnnge In fund halance-mta1 govcrnmem funds
S 1243,557
The change in net position reported iorgovemmental activities in (Ile
smtement of activities is different because:
Governmental funds report all capital outlays as expenditures.
However, in the statement of activities,the cost of Certain assets
is allocated over then estimated useful lives and reposed as
depreciation expense, This is the amount by which capital outlays
exceeded depreciation expense to the current period- 4,092,855
Grants...m d for capital projects are amortized over the life of
the asset.This is the amount by which the grant exceeded the
nmarti Garion in the current period. 3,150
A donation of land was not recorded In the funds 380,000
Bund proceeds are reported on the financing sources in governmental
funds and thus mntributc m the change in fund balance In the
stancerent of net position,however, issmng deht increases Ion;-tens
liabilities and does nut affect the statentem of a,uNitics. Similarly,
repayment of principal is an expenditure in the governmental funds
but reduces the liability in the statement of net position.
Debt issued:
Bonds payable issued (1,440,000)
Loss: non-,ash refunding issue 1 400,000
t Bond anticipation notes redeemed (l 15,531)
14 Repayments:
Bond anticipation note principal 115,531
Bond principal 2,225,000
2.185,000
In the statement of activities, interest is accrued on outstanding
honds, whereas in governmental funds, an interest expenditure is
reported when due, This amount represents the change between
what was paid and what was accrued through 2013- 38,027
Increase in residual fund balance due from the Tri-Municipal
sewer commission is not reported in the funds 208,365
Some expenses reposed in the statement of activities,such as
compensated absences, landfill liabilities and po51emp10ymem benefits
do not require the use of current financial resources and therefore are not
reported as expenditures in governmental funds. This amount
represents the change between what was paid and what was
accrued through 2013. (461,247)
Net change in net position ofgovernmemal activities $ 8.689,]07
See independent auditors' report. 21
L
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF NET POSITION
FIDUCIARY FUND
DECEMBER 31,2013
AGENCY
FUNDS
ASSETS
LCash and cash equivalents $ 643,964
Total assets $ 643,964
L
L
LIABILITIES
i
Escrow funds returnable and other liabilities $ 643,964
L Total liabilities 643,964
LNET POSITION -
Total liabilities and net position $ 643,964
kL
€a
L
L
L
L
L
L
L
See independent auditors' report. 22
L 'TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
LDECEMBER 31, 2013
L
NOTE A Summary of Significant Accounting Policies
L The Town of Wappinger, New York (the "Town') was incorporated on May 20, 1875, under the
provisions of the State of New York. The Town operates tinder a Town Board form of
vovernment, consisting of a Supervisor and four Councilmen/women. The Supervisor serves as
the Chief Executive Officer and as the Chief Fiscal Officer of the Town.
The Town provides the following services: highway maintenance, water, sewer, planning,
Lzoning, building and safety inspection, lighting, and culture and recreation.
The Town's financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America as applied to governmental units (GAAP). The
Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for
state and local governments through its pronouncements (Statements and Interpretations). The
Town is also required to follow the pronouncements of the Financial Accounting Standards
Board (FASB) issued through November 30, 1989, (when applicable) that do not conflict with or
contradict GASB pronouncements, in preparing its government-wide financial statements.
tLThe more significant accounting policies established by GAAP and used by the Town in
preparing its government-wide and fund financial statements are discussed below.
1. The Reporting Entitv
L
The Town, for financial purposes, includes all of the funds relevant to the operations of
the Town of Wappinger, New York. The financial statements include organizations,
L function and activities that are controlled by or dependent upon the Town. Control or
dependence is determined on the basis of budget adoption, taxing authority, funding and
i appointment of the respective governing board. Under these criteria, no other entities are
included in the Town's financial statements.
2. Basic Financial Statements-Government-Wide Statements
LThe Town's basic financial statements include both government-wide (reporting the
Town as a whole) and fund financial statements (reporting the Town's major funds). Both
L
the government-wide and fund financial statements categorize primary activities as either
L governmental or business type activities. The Town's parks and recreation, public works,
and general administrative services are classified as governmental activities. The Town's
water services are also classified as governmental activities since user fees are not
intended to cover all costs including depreciation.
In the government-wide Statement of Net Position, the governmental activities columns
6 is presented on a consolidated basis by colunm, and is reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as
long-term debt and obligations. The Town's net position is reported in three paus—
1 invested in capital assets, net of related debt; restricted net assets; and unrestricted net
assets. The Town first utilizes restricted resources to finance qualifying activities.
Ir
7i
L
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL. STATEMENTS (CONT'D)
DECEMBER 31,2013
L
NOTE A Summary of Significant Accounting Policies (Conl'd)
L 2. Basic Financial Statements —Government-Wide Statements (Cont'd)
The government-wide Statement of Activities reports both the gross and net cost of each
of the Town's functions or activities. The functions are also supported by general
government revenues (property and sales taxes, certain intergovernmental revenues,
fines, permits and charges, etc.). The Statement of Activities reduces gross expenses
(including depreciation) by related program revenues, operating and capital grants.
Program revenues must be directly associated with the function (public works,
community and youth services, etc.). Operating grants include operating specific and
discretionary (either operating or capital) grants while the capital grants column reflects
capital-specific grants.
The net costs are normally covered by general revenue (property, sales or mortgage taxes,
intergovernmental revenues, interest income, etc).
This government-wide focus is more on the sustainability of the Town as an entity and
the change in the Town's net position resulting from the current year's activities.
F
L3. Basic Financial Statements— Fund Financial Statements
The financial transactions of the Town are reported in individual funds in the fund
financial statements. Each fund is accounted for by providing a separate set of self-
balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues
and expenditures/expenses Funds are organized into three major categories:
govemmental, proprietary, and fiduciary. An emphasis is placed on major funds within
the governmental and proprietary categories. A fund is considered major if it is the
t primary operating fund of the Town or meets the following criteria:
L a. "total assets, liabilities, revenues, or expenditures/expenses of that individual
govemmental fund are at least 10 percent of the corresponding total for all funds of
Lthat category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual
governmental fund or enterprise fund are at least 5 percent of the corresponding total
L for all governmental and enterprise funds combined.
t The following fund types are used by the Town:
e
as
A. Governmental Funds
The focus of the governmental funds' measurement (in the fund statements) is upon
determination of financial position and changes in financial position (sources, uses, and
balances of financial resources) rather than upon net income.
i
za
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL. STATEMENTS (CONT'D)
I DECEMBER 31, 2013
�r NOTE Summary of Significant Accounting Policies (Cont'd)
L3. Basic Financial Statements —Fund Financial Statements (Cont'd)
The following is a description of the governmental funds of the Town:
I. General Fund — Town-wide is the general operating fund of the Town. It is used to
¢ account for all financial resources except those required to be accounted for in
L another fund. The General Fund is considered a major fund and is presented
separately.
2. General Fund — Part-Town is used to record revenues and expenditures related to
services provided to residents Living outside the Village of Wappingers Falls, such as
police protection, planning and zoning services. The General Fund — Part-Town is
considered a major fund and is presented separately.
3. Highway Fund is used to record the revenues and expenditures related to the
maintenance of Town roadways. The Highway Fund is considered a major fund and
is presented separately.
4. Water Fund is used to record the revenues and expenditures related to the delivery of
E water to the Town's customers. The Water Fund is considered a major fund and is
ib presented separately.
5. Sewer Fund is used to record the revenues and expenditures related to the delivery of
sewer services to the Town's customers. The Sewer Fund is considered a major fund
and is presented separately.
4
L 6_ Capital Projects Fund is used to account for financial resources to be used for the
acquisition and construction of major capital facilities. The Capital Projects Fund is
considered a major fund and is presented separately. However, no budgetary
comparison schedule is presented as required supplemental information, as the Town
is not legally required to adopt an annual budget for the Capital Projects Fund.
f
7. Non-Major Funds include those that are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditures for specified purposes.
g These include the Special Grant, Lighting and Miscellaneous (Ambulance) Funds.
C.
B. Fiduciary Funds
LFiduciary Funds are used to report assets held in a trustee or agency capacity for others
and therefore are not available to support Town programs. The reporting focus is on net
position and changes in net position and are reported using accounting principles similar
r to proprietary funds.
The Town's fiduciary funds are presented in the fiduciary fund financial statements.
Since by definition these assets are being held for the benefit of a third party and cannot
be used to address activities or obligations of the government, these funds are not
incorporated into the government-wide statements.
�' 25
L
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
b DECEMBER 31, 2013
V
'VOTE A Summar of Significant Accounting Policies (Cont'd)
S
4. Basis of Accounting
Basis of accounting refers to the point at which revenues or expenditures/expenses are
recognized in the accounts and reported in the financial statements. It relates to the
timing of the measurements made regardless of the measurement focus applied.
LA. Accrual
The governmental activities in the government-wide financial statements and fiduciary
fund financial statements are presented on the accrual basis of accounting. Revenues are
6 recognized when earned and expenses are recognized when incurred.
LB. Modified Accrual
The governmental funds financial statements are presented on the modified accrual basis
of accounting. Under the modified accrual basis of accounting, revenues are recorded
when susceptible to accrual; i.e., both measurable and available. "Available' means
collectible within the current period or within 60 days after year-end. Expenditures are
generally recognized under the modified accrual basis of accounting when the related
liability is incurred. The exception to this general rule is that principal and interest on
r' general obligation long-term debt, if any, is recognized when due.
5. Financial Statement Amounts
L
A. Cash and Cash Equivalents and Investments
Cash includes amounts in demand and time deposits, as well as, short-term investments.
State statutes and the Town's own written investment policy govern the investment
policies of the Town. The Town may invest its funds in banks or trust companies
authorized to do business in the State of New York, as well as investing in obligations of
the U. S. Treasury, U.S. Agencies, and obligations of the State of New York and its
political subdivisions. Deposits not covered by Federal Deposit Insurance, are
b collateralized by the banking institutions with investments governed under state statutes.
6 Short-term investments consist of investments in repurchase agreements. The repurchase
agreements involve purchases by a broker of portfolio securities concurrently with an
agreement by the broker to sell the same securities at a later date at a fixed price.
Generally, the effect of such a transaction is that the Town can invest its excess cash
balances at competitive interest rates. The Town reports its repurchase agreements at
market value, which approximates cost plus accrued interest.
i
M
`p
w
L
L
?6
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONUD)
r DECEMBER 31, 2013
V
NOTE A Summary of Significant Accounting Policies (Cont'd)
t
5. Financial Statement Amounts (Cont'd)
A. Cash and Cash Equivalents and Investments (Cont'd)
{ The cash and investments of the Town at December 31, 2013, are as follows:
p C i,rrAl, NON-
GENM&L 111GIMAY NN'ATER SEWER PROJECTS MAJOR
RNDS R No FUND _ YUND MUMU MTINDS 'DOTAL
N
bnumg Acrnunb s 8i0 $ $ s $ s 5 85U
Imcmu lieerinc
vsoum 1.J4155fi teJ.451 1,349.'_35 UN0.859 2351137 90.180 tl5411.118
'10TALS $ 3,444,406 $ 304,451 $1.349,235 $1,000,859 $ 2,352,137 $ 90,180 $ 8,541.208
L
Custodial credit risk is the risk that in the event of a bank failure, the Town's deposits
L may not be returned to it. While the Town does not have a specific policy for custodial
credit risk, New York State statues govern the Town's investment policies, as discussed
previously in these Notes. Governmental Accounting Standards Board Statement No. 40
b Deposit and hnvesnnent Rick Disrloswe directs that deposits be disclosed as exposed to
L custodial credit risk if they are not covered by depository insurance, or collateralized by
securities held by the Town or its agent in the Town's name. The Town's cash balances
were fully collateralized with securities held by the Town's third party custodian and not
subject to custodial credit risk.
f B. Inventories
L
Inventories consist of significant expendable supplies primarily sand and road salt and are
carried at cost.
L C. Capital Assets
4 Capital assets purchased or acquired with an original cost of $500 or more are reported at
L historical cost or estimated historical cost. Contributed assets are reported at fair market
value as of the date received. Additions, improvements and other capital outlays that
( significantly extend the useful life of an asset are capitalized. Other costs incurred for
IL, repairs and maintenance are expensed as incurred. Depreciation on all assets is provided
on the straight-line basis over the following estimated useful lives:
IL Buildings 15-40 years
Infrastructure—Water & Sewer 40 years
Infrastructure—Roads 15 years
n Machinery and equipment 5-15 years
Improvements 10-30 years
e
k
) 1
V
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONI"D)
DECEMBER 31,2013
u
NOTE A Summary of Significant Accounting Policies (Cont'd)
5. Financial Statement Amounts (Cont'd)
LC. Capital Assets (Cont'd)
GASB Statement No. 34 requires the Town to report and depreciate new infrastructure
L
assets effective with the beginning of 2003. Infrastructure assets include roads, bridges,
L underground pipe (other than related to utilities), traffic signals, etc. These infrastructure
assets are likely to he the largest asset class of the Town. Neither their historical cost nor
related depreciation had historically been reported in the financial statements. The
retroactive reporting of infrastructure is subject to an extended implementation period
and is first effective for fiscal years ending in 2007. The Town implemented the general
provisions of GASB Statement No. 34 in 2003 but had not implemented the retroactive
& reporting of infrastructure assets by the end of 2007 as required. The Town currently
L does not have a timetable in place for implementing the retroactive infrastructure
provisions.
1). Fund Balance Classifications
Fund balance is presented in five different classifications which focus on the constraints
imposed on resources in governmental funds, rather than on availability for
appropriation. The classifications include: non-spendable, restricted, committed,
g assigned, and unassigned.
L Non-spendable consists of assets that are inherently non-spendable in the current period
either because of their form or because they must he maintained intact, including prepaid
items, inventories, long-term portions of loans receivable, financial assets held for resale,
L and principal of endowments.
Restricted consists of amounts that are subject to externally enforceable legal purpose
restrictions imposed by creditors, grantors, contributors, or laws and regulations of other
governments; or through constitutional provisions or enabling legislation.
Committed consists of amounts that are subject to a purpose constraint imposed by a
formal action of the governments highest level of decision-making authority before the
end of the fiscal year, and that require the same level of formal action to remove the
constraint. The Board is the decision-making authority that can, prior to the end of the
6 fiscal year, commit fund balance.
Assigned consists of amounts that are subject to a purpose constraint that represents an
intended use established by the government's highest level of decision-making authority,
or by their designated body or official. The purpose of the assignment must be narrower
than the purpose of the general fund, and in funds other than the general fund, assigned
e fund balance represents the residual amount of fund balance.
r
Unassigned represents the residual classification for the government's general fund, and
could report a surplus or deficit. In funds other than the general fund, the unassigned
classification should be used only to report a deficit balance resulting from overspending
for specific purposes for which amounts had been restricted, committed, or assigned.
� 2ki
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 2013
NOTE A Summate of Significant Accounting Policies (Cont'd)
k
L 5. Financial Statement Amounts (Cont'd)
LD. Fund Balance Classifications (Cont'd)
When resources are available from multiple classifications, the Town spends funds in the
I following order: restricted, committed, assigned, unassigned.
'the following details the allocations and amounts of fund balance following the
implementation of GASB 54 as of December 31, 2013:
General Fund-Town Wide
Nonspendable - Prepaids and Inventory S 85,405
LRestricted -Recreation 1,378,721
Unassigned 818,911
Total General Fund - Town-Wide 2,283,037
k
General Fund- Parl-Town
Nonspendable- Prepaids and Inventory 36,743
Restricted - Debt Service 164,050
V
Restnced - Miscellaneous 402,900
Assio tcd 968,165
Total General Fund-Part-Town 1,571,858
Highway Fund
L
Non,penduble- Prepaids and Inventory 296,639
L Assigned 768,209
Total Highway Fund 1,064,848
LWater Fund
Nonspendable- Prepaids and Inventory 408
Assigned1,728,280
Total Water Fund —F728,688
Sewer Fund
Assigned
1,748,148
Total Sewer Fund 1,749,148
Capital Projects Fund
im Assigned (1,658,328)
Total Capital Projects Fund (1,658,328)
Non-Major
Assigned 89,990
Total Non-Major 89,990
w
TOTAL $6=828,241
29
ft
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTU
DECEMBER 31, 2013
'r
NOTE A Summary of Significant Accounting Policies (Cont'dl
5. Financial Statement Amounts (Cont'd)
LD. Fund Balance Classifications (Cont'd)
The Town has $1,378,721 of unassigned but restricted funds for recreation, which
r includes funds commonly referred to as Parkland Trust deposits, as well as funds set-
L aside for the Camwath property. These amounts are accounted for in the Trust and
Agency fund and transferred to the General Fund when released from restriction. For
government-wide financial presentation purposes, these amounts are completely
reclassified to the General Fund and restricted.
gg E. Accumulated Compensated Absences
Ir It is the Town's policy to permit employees of the Highway Department to accumulate a
limited amount of earned but unused vacation and sick leave, which will be paid to
employees upon separation from the Town's service. Other Town employees may
accumulate a limited amount of unused compensated absences as well. However, for
other Town employees, only unused vacation leave will be paid upon separation from the
Town's service. The Town accrues a liability for compensated absences, which meet the
following criteria:
I. The Town's obligations relating to employees' rights to compensation for future
{ absences is attributable to employee's services already rendered;
�r 2. The obligation relates to rights that vest or accumulate;
3. Payment of the compensation is probable;
¢ 4. The amount can be reasonably estimated.
L
In accordance with the above criteria, the Town has accrued a liability for vacation pay,
which has been earned and not taken by Town employees as of December 31, 2013, in
the amount of $342,390. The non-current portion (the amount estimated to be used in
subsequent fiscal years) for governmental funds is maintained separately and represents a
reconciling item between the fund and government-wide presentations. It is anticipated
that none of these liabilities will be liquidated with expendable available financial
resources.
LF. Inlerfund Activity
Interfund activity is reported as loans, services provided, reimbursements or transfers.
o Loans are reported as interfund receivables and payables as appropriate and are subject to
t elimination upon consolidation. Services provided, deemed to be at market or near
market rates, are treated as revenues and expenditures/expenses. Reimbursements are
when one fund incurs a cost, charges the appropriate benefiting fund and reduces its
related cost as a reimbursement. All other interfund transactions are treated as transfers.
i Transfers between governmental or proprietary funds are netted as part of the
reconciliation to the government-wide financial statements.
�'
10
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 2013
NOTE A Summary of Significant Accounting Policies (Cont'd)
i 5. Financial Statement Amounts (Cont'd)
C. Budgets
L
The Town employs formal budgetary accounting as a management tool, on a basis
consistent with generally accepted accounting procedures. During the year, a budget was
adopted and modified by the Town Council for the General Fund —Town Wide, General
Fund—Part Town, Highway Fund, Water Fund, and Sewer Fund. Budgetary controls are
established or adopted for the Capital Projects Fund on a project basis. Unused
appropriations of the annually budgeted funds lapse at the end of the year.
H. Pension Plans
L Plan Description
The Town of Wappinger participates in the New York State and Local Employees'
Retirement System (ERS), the New York State and the Public Employees' Group Life
Insurance Plan (Systems). ERS is a cost-sharing multiple-employer retirement system.
The Systems provide retirement benefits as well as death and disability benefits.
Obligations of employers and employees to contribute and benefits to employees are
t' governed by the New York State Retirement and Social Security Law (NYSRSSL).
As set forth in the NYSRSSL, the Comptroller of the Slate of New York (Comptr)ller)
L
serves as tole trustee and administrative head of the Systems. The Comptroller shall
adopt and may amend rules and regulations for the administration and transaction of the
business of the Systems and for the custody and control of their funds. The Systems
issue a publicly available financial report that includes financial statements and required
supplementary information. That report may he obtained by writing to the New York
State and Local Retirement Systems, 110 State Street, Albany, New York 12244.
L
Funding Policy
LThe Systems are noncontributory except for employees who joined the New York State
and Local Employees' Retirement System after July 27, 1976, who contribute 371 of their
salary. Under the authority, of the NYSRSSL, the Comptroller shall certify annually the
rates expressed as proportions of payroll of members, which shall be used in computing
the contributions required to be made by employers to the pension accumulation fund.
The Town of Wapping-et is required to contribute at an actuarially determined rate. The
required contributions for the current year and two preceding years were:
ERS
2013 $ 508,861
2012 $ 440,265
2011 $ 323,973
The Town's contributions made to the Systems were equal to or in excess of 100 percent
of the contributions required for each year.
31
r
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 2013
NOTE A Summary of Significant Accounting Policies (CopYd)
5. Financial Statement Amounts (Cont'd)
1. Other Post-Employment Benefits
4
The cost of post-employment healthcare benefits, like the cos[ of pension benefits,
generally should be associated with the periods in which the cost occurs, rather than in
the future year when it will be paid, which is the accrual accounting perspective. In
adopting the requirements of GASB Statement No. 45, Accounting and Financial
Reposing be Employers for Post-emploitnent Benefits Other Than Pensions, the Town
recognizes the cost of post-employment healthcare in the year when the employee
services are received, reports the accumulated liability from prior years, and provides
information useful in assessing potential demands on the Town's future cash flows.
Recognition of the liability accumulated from prior years will be phased in over 30 years.
C. The Town calculated its annual required contribution (ARC) and related information
using the alternative measurement method permitted by GASB No. 45 for employers in
plans with fewer than 100 total plan members.
L
The Town provides continuation of medical insurance coverage to employees that retire
under the New York Retirement Systems at the same time they end their service to the
Town. This plan is a single employer plan, established by authority of the Town Board
and administered by the Town. Currently, there are approximately 15 retirees or
beneficiaries receiving post-employment benefits. Based on the current employment
- policy, the retiree and his or her beneficiaries receive coverage for the life of the retiree
�Ir based on the retiree's years of service at retirement. A copy of the report on these
benefits can be requested at Town Ball. A summary of benefits is as follows:
`k Paid by Town
Under 65 Over 65 _
Years of Service
10-14 Years 35% 359,
IS-19Years 50% 5017
t 20-24 Years 60% 6017,
€ 25 or More Years 70%r 70%r
L
Funding Policv
The Town provides funding on the pay-as-you-go method by payment of current
ft insurance premiums. Currently, New York's General Municipal laws do not permit
funding of the OPEB obligation, therefore there are no plan assets.
s
r
f.
32
a
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'H)
DECEMBER 31, 2013
L
NOTE A- Summary of Significant Accounting Policies(Cont'd)
4
L' 5. Financial Statement Amounts (Cont'd)
LL Other Post-Employment Benefits (Cont'd)
Annual Other Postemploymenl BeneFit Cost
LThe Town's change in net OPEB obligation amounted to $447,600 for the year ended
December 31, 2013. The Annual Required Contribution (ARC) is an amount actuarially
determined in accordance with the parameters of GASB Statement 45 less the amount
L that the Town paid in the current year for retirees. The ARC represents a level of funding
that, if paid on an ongoing basis, is projected to cover normal costs plus a past service
I cost each year and amortize any unfunded actuarial liabilities over a period of 30 years.
L
Total Actuarial Accrued Liability $ 6,114,097
Past Service Cosa
236,314
Not maI Costs 304,746
L Annual Required Contribution(ARC) $ 541,060
Net OPEB Obligation- beginning ofthe year $ 2,252,442
Annual Required Contribution(ARC) 541,060
Interest on Net OPEB Obligation 56,311
LAdjustnxnt to Annual Required Contribution (84,523)
Annual OPEB cost 512,848
Actual Employer Contributions- (65,248)
L Increase in Net OPEB Obligation 447-600
Net OPEB Obigation - end of the year $ 2,700,042
LPercent of annual OPEB cost contributed 12.70%
*This contribution is the pay-as-you-go amount, as an actual plan
Lhas not been established, see Funding Policy.
r
L
V
33
" TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 2013
NOTE A Summary of Significant Accounting Policies (Cont'd)
5. Financial Statement Amounts (Cont'd)
L Other Post-Employment Benefits (Cont'd)
Actuarial Methods and Assumptions
LProjections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types of
benefits provided at the time of each valuation and the historical pattern of sharing
L benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects
V of short-term volatility in actuarial accrued liabilities and the actuarial value of assets.
consistent with the long-term perspective of the calculations. In the December 31, 2013,
actuarial valuation, the liabilities were computed using the entry age actuarial cost
method and level percentage of payroll amortization. The actuarial assumptions utilized
a 2.5% baseline discount rate.
The valuation assumes the following rates of increase in health care costs:
i•
Fiscal Prescription
LYear Medical Drug Dental Vision
Year 1 9.00°/r 9.00'7, 4.0017, 3.00%
Year 2 8.0090 8.001/1 3.509 3.007,
Ycar 3 7.0007, ZOOM 3.00%, 3.0006.
`- Year 4 6.007 6.00%, 3.007 3.009,
tom
Year 5 5.80%, 5.80% 3.007 3.001/,
Year 6 5.6017, 5.601T 3.0017, 3.007
L Year 7 5.607, 5.60%, 3.00%, 3.00%,
Year 8 5.50%, 5.50%, 3.00%, 3.007
} Year 9 5.50%, 5.50% 3.00%, 3.009,
6 Year 10+ 4.70%, 4.707 3.00% 3.00%,
3 J. Properly Taxes
it The Town submits an approved budget to the Dutchess County Commissioner of Finance
5 by December 5th of the previous year. The County then establishes the warrant for the
4 year, which is due and payable on or about January I of each year. The Town collects
the taxes on behalf of the Town and County without penalty through February 281h and
with penalties and interest through August 31st. The Town's portion of the taxes is
recognized and transferred prior to the County's portion. Therefore, the Town receives its
entire tax, leaving the unpaids to be collected by the County Commissioner of Finance.
34
r
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 2013
i
NOTE A Summary of Significant Accounting Policies (Cont'd)
5. Financial Statement Amounts (Cont'd)
F K. Long-Term Liabilities
i• Long-term debt is recognized as a liability of a governmental fund when due, or when
resources have been accumulated for payment early in the following year. For other
lona term obligations, only that portion expected to be financed from expendable
available financial resources is reported as a fund liability of a governmental fund. The
remaining portion of such obligations is only reported in the statement of net assets, long-
V term liabilities.
L. Risk Management
4
The Town of Wappinger assumes the liability for most risk including but not limited to,
property damage and personal injury liability. Such risks are covered by the purchase of
q commercial insurance. Judgments and claims are recorded when it is probable that an
i. asset has been impaired ora liability has been incurred and the amount of loss can be
reasonably estimated. Workers compensation coverage is provided through a
retrospective policy, wherein premiums are recorded based on the ultimate cost of the
experience to date of workers in similar occupations. The Town does not estimate
claims, which may have occurred but are not reported in areas where the Town is not
insured.
M. Use of Estimates
The preparation of basic financial statements, in conformity with accounting principles
generally accepted in the United States of America, requires management to make
estimates and assumptions that affect the amounts reported in the basic financial
Lstatements and the accompanying notes. Actual results could differ from those estimates.
N.Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the
financial statements through the dale that the financial statements were available to be
issued, which date is August t2, 2014.
Suhsequent events noted during management's evaluation are detailed in Note K.
i
6
35
r
LTOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
L DECEMBER 31, 2013
NOTE B - Other Receivables
L Other receivables and charges for service at December 31, 2013, consist of the following:
CAPITAL NON
GENERAL WGHWAIWATER SEWER PROJECTS MAJOR
—
FINDS FUM) FUND FUND _ FUND YIINDS TOTAL
pmoun¢Re¢icaFl. 5 2N,846 $ s - 4 - S S JY1.845
R— k,,—1 ble __ 411.111 780591 - _ 1191."/19_
TOTALS $ 209,X46 $ F 011,111 $ 780,591 $ $ $ 1,401548
1L NOTE C - Interfund Receivables and Payables and Transfers
The following is a summary of amounts due from and due to other funds, and transfers in and
out, as of December 31, 2013. These interfund balances have been eliminated as part of the
aggregation of fund balances. Such balances arise through the use of a pooled cash disbursement
account and the temporary funding of capital projects. There were no interfund transfers for
2013.
6
AMOUNT AMOUNT
L
FUND RECEIVABLE PAYABLE
L General -Town-Wide $ 222.974
General - Part-Town - 75,225
Highway 330,450 -
Water - 8,389
Sewer - 17.397
Capital Projects - 2,292
Non-Major 14,447 18,720
TOTALS $ 344,897 $ 344,897
i.
L
L
i.
36
L
I
€
L TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31, 2013
L
NOTE D — Capital Assets
LThe following is a summary of changes and adjustments in the Capital Assets, for the year ended
December 31,2013:
LBALANCE BALANCE
JANUARY 1, DECEMBER31,
2013 ADDITIONS (DISPOSALS) 2013
L Land -T7 $-1 9 0-0 0 0 $ - 5 8.162,217
Buildings 8.026353 - - BA26,353
hnprorc meats Or her Than Buildi nes 1.019,496 - - 1015,496
L Boa, 4,190378 - - 4.190378
ho'n' ructurc 12,106,h60 1,026-801 - 11,113,461
g Machinery and Equipment 6,185.941 50,616 - F2-36557
Y Constmctiun in Progress 1,918,778 5376,665 (1,026801) 6,268.642
Total 4L425,821 6.834,082 (1.026,801) 47,233.104
I Less accumulated depreciation
L 1,325,536
Buildings 3,093,825 231.711
hopnownrents 011 er'Ihan Build,.-, 675.981 29,444 - 704.425
Road, 1,642,751 279.359 - 1,922,110
Infra,hucture 862,917 307,666 - 1.170,583
Machinery and Equipment 1.284,951 402,034 - 4,686985
Total accumulated depreciation 10,560,425 1249,214 11,809,639
Governmental actisities capital
assets,net $30,865398 $5,584,868 5 f 1.026,8011 $ 35423,465
"Dcprccrxuon wvs charocd to gn vernmcvl.l ac15vilics as follows:
General governmevl support $ 178,287
Public satcty 48,167
Transportation 663.206
celixe and recreation 71,229
Homc and community se,ices 288,325
4 Total depreciation expense $ 1,249.214
L
i
ft
L
37
i.
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL. STATEMENTS (CONT'D)
DECEMBER 31.2013
NOTE E - Bond Anticipation Notes Payable
Bond Anticipation Notes can be used for any purpose for which bonds are authorized, and are
generally accounted for in the Capital Projects Fund, since maturities cannot exceed one year.
Local finance law allows the notes to be renewed, up to five years for capital purposes and up to
the period of probable usefulness for assessable improvements, provided that stipulated annual
reductions of principal are made.
"the Bond Anticipation Notes outstanding as of December 31,2013, are as follows:
ANIOoN'I
cn'rs'1'ANDING
ORIGINAL. ORIGINAL. A"I
ISSEF NIATURIIY INTEREST ANIOUNT DECENIBER31,
PURPOSE DATE: DATE: RATE OFISSUE 2013 _ .
N oFquip 117/18/11 03/28/14 064'4 5 1016,37i S 816,09
B,),[,,,& � R ,wain.. 04/01/10 03/28/14 061', 4911.0011 395.000
H,h„a3 I'aclne 10/20111 03/28/14 es4`I 210,0(01) 23101011
( y , Sut, 03/21/11 03/28/14 0644 3.1.000 24]50
C -Ah Fart IDIS/111 03/16/14 064', 85.000 71000
LandWk nom'Wma 1>et'ml lnproccrenu 09/26/13 03/38/14 0.8V,t 500,0(X1 500,00)
roiled Wnpplmgr Sewer Di["'l lmpro,.. ..9/16/13 03/28/14 0.83'6 5611.000 58(V00
N'ilJwooJ1),and Gram.Pl lnTm,cnenl:. 09/1_6/13 03/14/14 08349 500.OW 500000
'r0'rAL BOND ANICIPATION NO'rES $ 3,45fi 375 $ 3,127M3
4
Changes in Bond Anticipation Notes Payable as of December 31, 2013, are as follows:
BALANCE BALANGF.
.IANtIARY 1, NE39M-FLNANCNJ DECEMBER 31,
PURPOSE: 2013 ISSUP:S _ PAIINENTS 2013_
Vann,Equipnwnl 5 869395 S - 4 (51,282) S 81609A
{r Bonen&G”"12emm¢ottlun 426,0(X) - (31 0001 395,000
L H,Shua, l'aJin, 150.000 (13.000) 131000
Qn,pnuer Sallo.nrc 33,000 (8,250) 24]50
Carmca(h Farm, 8511W - (III.INN)1 71000
L'niwd Wappin_cr W'amr Di<via lny)ro.cnxnH - 5(10,000 - 500,000
Unitzd WnOrym•cr Scuer Uiarticl lnp¢mcnx:nlx 590.000 58).000
N,lduood Urand Granas Pl lnpn,ccnrntt - 500.)00 - 500,000
torALS $ 1,663,375 $1,560,000 $ (115,532) $ 3,127,693
t
i
s
L
38
F
LTOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL. STATEMENTS (CONT'D)
DECEMBER 31, 2013
Ir NOTE F - Lone-Term Liabilities
LI. Serial Bonds
LLSerial Bonds may be issued for any object or purpose for which a period of probable usefulness
has been established. The Serial Bonds Payable, as of December 31,2013, is as follows:
ANIOLNI
(111TS'LANDLNG
ORIGIN.IL FINAL OWGINAL AT
NNIT NIA'IPRrIR LN ff.RE.T ANIOLN'IDF(TNIBER31,
PURPOSE DAYS DA9T] RVFV OF ISSUE _ 2013 _
S,,, Tri-Nluninpui 03/14/02 04/1521 1.21kc4Wh S 9,816,556 S 4415(00
Senor-LTi Munilip.1 11/26/02 05/15/1i 3,18'1 996 8.519,796 795000
S,,, Tr. 06/01/9) 11/15/15 1701 - 51'k 3.610,054 335.IT➢I
W"" I1c ""'d 07/30/98 10/15/18 3.70'6-5156 510,1100 16111100
Scncr-1111111&('ommun,[p S,rv,,, (16/03/11 04/01/21 2716-3506 316000 265.000
C- 1 111HII Pr11,111 PLJJUI. 06/0'/11 10/01/ 0 2.00'b 3 50', 2,085.000 990.0011
Fl e7c n}Sum.. B 3V e 06/01/95 11/1915 3,70'1/, 5556 1.2_75.1100 125()00
SI B-TOTAL 25.112396 70951100
N''e¢r-Horne&Community Seni.es 564.000 -
Smccr-Home&Communilp sono., 905,0011
Gcncral-CNmru&NcorcmioNLtphling 784 0()0
03/35/03 03/0123 4001 4506 _]54,000
Gcncral-GeneralGna+1111111S.rl-' 661.400 51305
Nater/Senor-Hume&COrunlUIII('SerRIRel 8,674.300 7041,091
§ Hh.hna> -Tmn.pmallon 2.344300 1.82_6884
!i 08/01/07 08/111/27 300'k-500'4 115811.11110 `)4051100
Cvnund-('ulwrc& Rvvowlnn 1070.000 911639
Hlphxa3 Tmmryrmrtlon 1074.0110 814,481
[L General-Hnm1218/1110 9_21890
04/02/09 04/01/22 2(106900% 3.36'_.000 1 1().000
N4`emr-Iionm&(binnwnip 3enicex 360.000 360000
LScncr-Hnmc&Communilp Services 576,000 576 001)
General-(.IUIIe&R-11c.nNUJt(mg 504,000 504.000
03!0,/13 03/0123 2.00'h 2296 1.440.000 1,140.000
F TOTALS S 43,788,396 $ .<20,480,000
L
L
i
39
4.
6
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31,2013
NOTE F - Lone-Term Liabilities (Cont'd)
2. Changes
The changes in the Town's indebtedness during the year ended December 31, 2013, are
summarized as follows:
BALANCE BALANCE AMOUNTS
JANUARY 1, DECESIBI?R31, OUT wCOUN
2013 INCREASE (DECREASE) 2013 ONE YEAR
Serial Bond,Nolo E.I r 22,66s.000 $ 1.440.000 5 (3.615,000) S 20.484000 S 2.33(1 find
Conysn.a,cd Ah,encm
N,,,C A 1.E, 3211.180 22,210 - 342.390 -
1"'Bll Clow¢and P"'
Nov Cuw Nord 239]36 - (8,561) 231.175 8.717
Judrr.nrnl&Clvims
No1c H.I. 84000 84000 -
TOTALS S 23,304916 S 1.462,210 5 11.03561) S 21,131565 S 2338.717
3. Debt Service Requirements
The annual requirements to amorti7c bonded debt, as of December 31, 2013, are as follows:
YEAR ENDING
DECEMBER 31, PRINCIPAL. INTEREST TOTAL
2014 S 2,330,000 $ 822,976 $ 3,152,976
2015 1,920,000 730,329 2,650,329
2016 1,570,000 654,161 2,224,161
2017 1,635,000 587,169 2,222,169
2018 1,695,000 514,073 2209,073
2019-2023 7,040.000 1,564,373 8,604,373
2024-2028 3,500,000 626,878 4,126,878
2029-2033 790,000 33,576 823,576
TOTALS $20,480,000 $ 5,533,535 $26,013,535
q 4. Advance Refunding of Public Improvement Debt
In March 2003, the Town issued $2,254,000 in serial bonds with an average interest rate of
4.259, through the Depository Trust Company. The proceeds were used to fund improvements
for the Central Wappinger Emergency Water Improvement Area for 5564,000, improvements for
the Town of Wappinger Sewer Transmission/Treatment Improvement Area No 3A for $905,000,
and the purchase and installation of sports lighting at the Robinson Lane Recreation Area for
5785,000. The net proceeds of the refunding, $1,471,896, after payment of S65,000 in
underwriting and other issuance costs, were used to purchase state and local government
securities. These securities were deposited in an irrevocable trust with an escrow agent to
provide for all future debt service payments on the refunded debt. As of March 3, 2013, the
escrow funds were used to pay the refunded debt of $1,400,000. The outstanding principal
balance on the refunded debt totaled S1,440,000 at December 31, 2013, with an average interest
rate of 2.0717-.
40
L
LTOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONP'D)
DECEMBER 31, 2013
NOTE G - Leases
The Town is committed Under various leases for office equipment, communication equipment,
and vehicles. For accounting purposes, these leases can be considered either operating or
capital leases. Operating lease expenditures amounted to $52,075, and capital lease
expenditures amounted to$19,980 for the year ended December 31, 2013.
The total cost of assets recorded as capital leases totaled $72,800, with related accumulated
depreciation of$20,880, as of December 3 t, 2013.
At December 31, 2013, the approximate annual lease commitments, subject to appropriation of
funds, were as follows:
YEAR ENDING OPERA'T'ING
DECEMRER 31, LEASES
L 2014 $ 42,413
2015 29,189
y 2016 25,586
�r 2017 16,294
¢4 Total minimum lease payments $ 113,482
YEAR ENDING CAPITAL
C DECEMBER 31, LEASES
` 2014 $ 19,980
2015 11,307
Total minimum lease payments $ 31.287
NOTE H - Commitments and Contingent Liabilities
1. Lawsuits
The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of the
majority of these cases and lawsuits, as determined by the town attorney, should not result in
material unfavorable settlements. The Town has recorded an estimated liability amounting to
580,000 as judgment and claims, representing possible future settlements on tax certiorari cases.
2. Tri-Municipal Sewer Commission
The Town is a customer of the Tri-Municipal Sewer Commission which operates the Tri-
Municiapl Sewer Treatment Plant. The plant is managed by the Tri-Municipal Sewer
Commission. which is made up of representatives of the Town of Poughkeepsie and the Village
of Wappingers Palls. The Town, therefore, does not have ownership rights, nor does it have
voting rights on the Commission's governing board. However, the Town has committed to share
in capital costs for plant improvements as determined by the Commission. During 2013, the
Town incurred costs of $580,000 to help fund improvements to the Wappingers Creek pump
station.
L
41
L
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STA'T'EMENTS (CONT'D)
DECEMBER 31, 2013
'VOTE H - Commitments and Contingent Liabilities (Cont'd)
2. Tri-Municipal Sewer Commission (Cont'd)
Part of the Commission's residual fund balance is allocated to the Town and is returnable to the
6 Town at the discretion of the Commission's board. The Town's residual fund balance receivable
was $508283 at December 31, 2013.
3. United Wappinger Water District
In 2012, the Town entered into an agreement with the City of New York for the construction of a
water supply and distribution system. The first phase of the project is for the extension of the
water main from the United Wappmger Water District to the NYC Shaft 6 site on River Road.
The second phase of the project is for a water main extension of the NYC DEP parcel to the
Chelsea Hamlet arca. The City has agreed to pay for all eligible costs not to exceed
$11.000,000, and the Town is responsible for all costs over$11,000,000. The construction costs
incurred under this project totaled $5,657,181 as of December 31, 2013. The Town is expected
to supply approximately 160,000 gallons of water per day to NYC DEP for approximately
$180,000. The project is expected to be completed in 2014.
4. Authorized Debt
a As of December 31, 2013, the Town has authorized, but not issued, the following new deht:
Autherianlion Authorized lln-issued
PURPOSE Dale Amount Amount
Rclundf ng Bmals 11//01/99 $ 4.700,000 $ 1,430,000
Central w'appmger Walcr 01/12/01 9,590,000 100,000
Rnad hnpnncment 05/27/03 3,300J)00 1,220,000
Computer llmdwareand3uftware 03/11/03 550,000 200.000
United Wuppinger Wale,Dianct hopm,emcnta 04/22/13 4,040000 3.540,000
TOTALS $21,180,000 $ 6490,000
In April 2014, the Town authorized the issuance of $230,000 in bonds for the purchase of
highway equipment, and $520,000 in bonds for a boiler replacement project.
a
b�
gi
Y
42
LTOWN OF WAPPINGE R, NEW YORK
NOTES TO THE FINANCIAL. STATEMENTS (CONT'D)
L DECEMBER 31, 2013
NOTE I - Municipal Landfills
L 1. Castle Point Landfill
The Town has voluntarily entered into a Consent Order with the New York State Department of
Environmental Conservation to close, cap and monitor the landfill at Castle Point. The closing
and capping project was completed in 1999. The costs of monitoring, which could be required
for up to thirty years after closure, are currently estimated to amount to $66,345. The Town has
recorded the long term liability of $61,922 and short term liability of $4,423 in the Statement of
Net Position. The costs of both closure and post closure monitoring are ordinarily recognized
over the expected useful life of the landfill. However, since the landfill has stopped accepting
refuse and is now closed, any additional costs over the estimate is being recognized as incurred.
The Town incurred $4,423 in monitonng costs during 2013. The future costs may be higher due
to inflation, changes in technology or subsequent changes in regulations.
L2. Poughkeepsie-Wappingers-LaGrange Joint Landfill
The Town has shared in the monitoring costs of a closed landfill, the Poughkeepsie-Wappinger-
LaGiange Joint Landfill. This joint activity includes the City and Town of Poughkeepsie, New
York, the Village of Wappingers Falls, New York, the Town of LaGrange, New York and the
Town of Wappinger, New York. All costs associated with monitoring are recognized as
incurred. The Town's share of monitoring costs, for the year ended December 31, 2013,
amounted to 54,138.
The following is a summary of unaudited financial information at December 31, 2013, which is
included in the separate financial statements available from the Joint Landfill Board of
Governors,Town of Poughkeepsie, One Overocker Road, Poughkeepsie, New York, 12603:
L Total Assets $ 51,196
Total Liabilities $ -
LTotal Venture Equity $ 51,196
Total Revenues $ 24
LTotal Expenditures $ 30,707
During 2002, violations were documented at the landfill and in 2003 an Order of Consent was
nsucd through the New York State Department of Environmental Conservation to remediate
Environmental Conservation Law and New York Codes Rule and Regulations violations. To
comply with this order the municipalities need to perform final closure of the landfill under
current regulations by December 31, 2005, and perform post closure care and monitoring for a
minimum of thirty years thereafter. The estimated cost of final closure is $10,000,000. All costs
are home proportionately by each municipality: the Town of Wappinger's share is 14.17289, or
51.417,280. The Town issued $1,425,368 in bond anticipation notes to finance its share. The
notes were re-financed in 2009 into a serial bond and the amount outstanding as of December 31.
2013 is $923,890. Post closure and monitoring costs, which commenced in 2007 and continue
for 30 years, are estimated to amount to $1,163,000 as of December 31, 2013, with the Town's
share being $164,830.
he 43
i
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONP'D)
IL DECEMBER 31, 2013
NOTEJ— RENTAL INCOME
LThe Town has agreements with various organizations fm the rental of the Town's emergency
services building and for the rental of land and antenna space. Rental income totaled $222,85l)
for the year ended December 31, 2013. The minimum future rental income for each of the years
ending December 31, is as follows:
YEAR ENDING RENTAL,
DECEMBER31, INCOME
L2014 $ 131,339
2015 89,052
L
2016 34,988
G 2017 36,038
2018 27,227
1LTotal minimum rental income $ 318,644
NOTE K—SUBSEQUENT EVENTS
LIn March 2014, the Town issued public improvement serial bonds for $1,398,000 at 1.509, to
2.759,. The bonds were for various equipment purchases and improvements.
L In June 2014, the Town issued a bond anticipation note for $1,450,000 at .579,. The note was
for improvements of the United Wappinger Water District of $700,000, reconstruction and
resurfacing of various streets and sidewalks of $520,000, and the purchase of highway
Lequipment of$230,000.
In September 2014, the Town renewed a bond anticipation note for $1,580,000 at .839,. The
note was for improvements of the United Wappinger Water District of $500,000, improvements
of the United Wappinger Sewer District of $580,000, and drainage improvements at Wildwood
D1ive and Granger Place of$500,000.
LNOTE L—PRIOR PERIOD ADJUSTMENTS
In 2013, the following prior period adjustments were recorded to properly state fund balance and
net position as of December 31, 2013:
4 Location Ammnt Reason Ellect _
General Fund A S 15,615 To reclassify restricted cash trim Increase cash
Ltrust and agency Increase rund balance
Sewer Fund $186,633 To properly state expenses related Increase expense
to quarterly Tri-Municipal Sewer Increase fund balance
Commission payrtrms
LGovernment Wide 5212,193 To include baschall field project Increase construction in progress
expenses in construction in Increase net posmon
Government Wide $385.130 To record the residual fund balance Increase deferred inflow or resources
allocated to the Town from the Tri- Increase net position
Municipal Sewer Commission
F
44
L
1?%H11jI'1 1
'DOWN OF WAPPINGER,NUIN YORK
BUDGETARICOMPARISONSCHEDULE
DECEMBER 31.2013
GENERAL FUND-TOWN-WIDE
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
REVENUES
heal properly h"', $ 2+12.659 S 2112.658 $ 2,4426$9 $ -
Reolpropcnl1Jxitcma 64-527 64527 87361 1_2.834
Von property lax items - -
Ucpartmcnud fncomc 140.012 140-012 177.091 32069
Use of mnncy and pnglcrtc 1_10JR)o 210,000 226,960 16,960
Licenses and pe,onns 7,080 7,080 5,695 (1.395)
F...c.and tnrlci n,,> 1_88.900 388.900 24S321 (40.577)
Suleot property and compcnsaGon for lass - 100 100
xF lmleoas local sources - - 1.117,112 1,117,332
Slam aid 724.W0 724,000 809,133 84-43
'Fata1 revenues 3.977,1 77 1977.177 5,131643 1256,40h
Appmprimion of prior ycats fund hdl n,, 5,000 (5.000)
Intal revenues and app rupriedinn of
prior year's'fund balani 3,877.177 1982,177 SIA1.643 1_51166
i
EXPENDITURES AND ENCUMBRANCES
ben,I Gmemmcnl Sappnrl 1,85'_.755 LS1635i 1495,196 1'_1.159
Pahlic wicp 12,802 3 .802 11,298 1,504
ft Neabh 4,500 4,500 1900 1(,97
Transporlalion 141.401 141,401 117,715 3.686
FGantanlr a-sslslaJJCC&nppnnunlly 600 600 600 -
Culmrcandrxrcalion 345-911 371311 509,069 (115,957)
[I,) dcommanip scnice 2_51.000 267,100 214339 52,761
Hnipinex hcnefu 711.108 713308 625664 87644
Uchlsrn ioe 512.900 532.900 525,130 7,770
Intul expenditure and encumbrances 3.877,177 1881177 3540.813 341,364
Excess(der.0cm,y)of revenues and appropriation
Yof prior years fund balance over(under)
expenditures and encumbrances - 1,592,830 1592,910
Fund balance,December 31,2012 - - 674.592 674.592
tY prior pori...vdjmOnom - - 15.615 15,615
Fund balance,December 31,2012, Restated - - 690.21x7 690.1_07
p'und balance,December 31,2013 $ - $ $ 2.291,017 S 1,10,0;7
b
Y
W
i
See independent auditors' report. 45
r
GENERAL FUND-PAR"f=f0\tN
N: RIANCF:
ORIGINAL FINAL FAVORABLE.
BUDGET BUDGET ACI UAL 1UNFIAA'ORABLEI
p REVENIES
F! Real prapcny laze. 4 A A 4
Real propctly lex imms
Nnn property mx i leets 941.165 941.165 1.062,792 IJb27
Uaponmonml iammc 115600 115,600 160,739 45.139
LSc of money and pmpeny 500 Soo 1.029 5'-9
I iocmc and pcm3ils 250.000 250,000 261.148 11.149
p Fi
sale
and forfci
€Y e ui proand
pen} and compensmit)n tnr loss
1lisccllanenus loam spume. - - II II
Stam aid
'final revenues 13072!5 I107265 1185,719 178.354
Appmpnuuan of ponr ycefs l and ba,ece - -
'fotal revenues and appropriation of
prior pear's fund balance 1,107-265 1,307.265 1185,719 178,454
EXPENDIF111RES AND ENCUMBRANCES
Oancml 6occmmenl 5 uppon 214.696 214.696 107,970 Iob.R'_II
Puhh, to, 199,919 399.829 412,612 (12,S(3)
Ilcalth
I'anspunml)n 35.1152 35052 36,585 05311
F n 'iela & oppommity 5,000 5,000 3.7i2 1,248
( It c acd,,,oc,LIoo 95,415 95415 58.252 37.16?
Hmnc and community son.he 183,144 183.144 154,940 18.Vol
y i4mplu}cc henc0t, 1_46.027 246,027 221,684 24143
g Dchlscnlcc 128,102 128J02 128.101_ -
Y TnWI expenditures and encumbrances 1.307.265 1307.265 1.123,7'_3 183 442
Execs(deficiency)or revenues and appropriation
@Y of prior year's fund balance over(under)
expenditures and encumbrances - - '61916 361996
Fund balance,Decemher 31,2012 - 1209 962 1209,862
Fund balance,December 31,2013 8 - 5 5 1,571 958 5 1,571.858
See independent auditors' report. 46
L
L
HIGIIR'AY FUND
V:IRLANC'F,
L ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
g REVF.NUEti
F6 Real progeny ['I... 4 2,631219 $2,641,219 $ 1041,219 8
Realprapert tux items -
NOn prupenY tux item. J52835 152.815 45',M5 -
L 1)epartmcmal innmte - -
Ux of mmtcp and pnipeley 900 8110 1_198 198
Lisn....and pcnnft, - - 150 150
Lines and forfclwres
Sslc nl plaperty,,admniprnsaoon ti.r lutea 1.096 1,086
Sttaidneouv Inaol source - 695 695
State aid
aid 110,0011 150.0(1) 2+1.688 91.688
Total ret macs 3.211.851 3241854 3.341 971 97.117
App aipnmum of poor yeals I and halancc
I and revenu x and appropriation of
Lprinr year's fund balance 3213.851 1,244.954 3341.971 97.117
EVPF,ND11 FIRES AND ENUIINIBRANCES
Cicncntl132 J75 13_175 56960 75.61
(;,,1mmcm Suppun5
Puhlic -
LHealth - - - -
Tmn,,awlion 1950.088 1960,988 1,70,7S9 175.199
F.COnOnllC asismncc K opp..nun ily _ _ -
L CnIturc and rccaauun
Homcand cmmllum'uy senicc -
I=.mpinycchcncll¢ 756,094 756.084 712.'_03 4 3M
[; Ucht.cniee 395,307 391307 15)9(17 35,100
�y Tam1 expenditures and encumbrances 1211,851 3,244,954 2,911,759 33(1.095
4 Excess(deCciencp)of revenues and appropriation
Lof prinr pear's fund balance over lundcrl
cxpcinnunes and cneumbrances - - 12721' 4'_7_'12
Fund balance,December 3l,2012 - 637,636 637,616
LFund balnnce,December 31,2013 S 4 - S 1,061818 S 1,064,848
ky�
■
L
See independent auditors' report. 47
F
L
t
N'AT111 FUND
A:ARIANCF,
ORIGINAL FINAL FAVORABLE.
BUDGE:IRUDGE.'1' ACTUAL (UNFAVORABLE)
RE,VEN1ES
Bealpropenp laces $ 719,434 $ 719,134 5 719.431 8
Bezl plal"lu lax Item"
Non pnTcrty t"ilcmx
Oapanmcmal income 1.071 332 1,071,332 1.193,280 111 949
L'ec nt nnmry and pmpen} 3,052 3.052
Licen.cz anJ pcnnits - - 113,400 111_,400
Fins and tortdtores
Sale of property and cnmpenmtionI,los - - 3,498 3399
Mixelluncous(neat sources -
Slat,nd
Total revemtes 1,79(ll66 1,790,766 20?1,664 33O'S98
Appmpnadon otpnorycarsfimd hululac -
Total revenues and appropriation of
poor ear's fund balance 1.790.766 1,790.760 2.021664 33(,898
EXPENDITURES AND EN CUMRRANCFS
Golcral Gnaemmaa Support XIJSi 81.155 3277 ]8.578
Public sura}
Ilc:dth
l ran[pOlWLI00
p Economic asistanm 3c opponlroul
€b Culwo"adracrceuan
H omc and community scnlcv 1003202 1,003202 1,012,711 (3951'_1
Emplu)nc hcndID 6,950 6,950 4,161 L589
Dahlscn lcc 699,489 699.159 673.786 21673
Total expenditures and encumbrances 1 790.766 1,790.766 1723,168 67 599
Excess(deficiency I or resenu,s and appropriation
of prior year's fund balance over(under)
expenditures and en,urhrancrs - - 298,496 298'196
Fund balance.December 31,2012 - 1,430,192 1.430.192
i
(Y Fund balance,December 31,2013 4 - % - b 1,738.688 8 1,728.688
N
p�
k`
4
S
E�
Y
See Independent auditors report. 38
4
L
L
SEWER FUNII
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
y REV FNLIFS
@Y Real pmpcn7 lazes $ 1,570,381 $ 1570ARI $ 1j41. 01 S C21901
Real pmporty lax i11nu _
Non property tax imms -
Demnmcntulincomc 19S262R 1,982_6]8 1.077411 94,911Vm ormoncp unJ pngtcnp I1g i(fi I18,366 IR9.618
51,272
Licenses and permit, - - 168600 168.600
Fines and forll:itures - - -
Sale nrprop,ey and compensation fur loss
%11s11Ilannvs 111111 snug-e5 -
State aid
Total revenues 1,691175 i691,47i i 978.980 287.510
Appm'IL,u,n M rev,Years fund balances
Total revenues and appropriation of
prior}ear's fund balance 1.691175 i fig 1,475 1978.980 187,501
pXPENDITC RES AND ENCUMBRANCES
General Govcmmrm Soppnrl 71 951 71,'151 16P1 74 GN
I'uhlie safclN
li"Olb
lransponatinu - -
$i ( Iii d tin
liam. a td c ommunul x 1a 111 1991.978 1,99o,978 1.999,M8 15 89fL
Linpinpce henebls 1,190 1.190 3.A L' 778
Debt""", 1620,15(, 1,620,356 161526' 5,094
'Fatal expenditures and encumbrances 1,691175 1691.475 3.(.16,870 74,605
Excess fdeficiencyl of revenues and appropriation
of prior year's fund balance over funder?
expenditures and encumbrances - - 16'__110 163'110
4 Iand balance,December 31,2012 - - 1,199.405 1,199A0li
1'onrperind adju4menl - 186633 186.611
Fund balance,December 31,2012,Restated - 1,39 .018 LS86113N
Fund balance,December 31,21113 5 - $ - S 1.748.148 S 1,748.148
x
i
k See independent auditors' report. 49
L
EXHIBIT II
TOWN OF WAPPINGER,NEW YORK
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
yE DECEMBER 31,2013
4
Unfunded UAL as a
Actuarial Armed Percenwge
Actuarial Value of Accrued Liability Funded CON cred ,fcovared
Valuation Assets Liahiiily (UAL) Ratio Payroll Pay r011
YearPnded _ Date (a)_ (h) (ba) (a/b)_ (c) ((b-a)/c)
12/31/2013 12/31/2013 $ - $6,114097 $ 6,114,097 0.07 $ 2,182,044 280707
12/31/2012 12/31/2011 $ - $6,237,176 S 6,237,176 007 $ 2.271,310 273611/,
p& 12/31/2011 12/31/2011 $ - $6,237,176 $ 6,237,176 0,07 $ 2,196,774 283921/,
Y
{i
See independent auditors' report. 50
4
LEXHIBIT III
TOWN OF WAPPINGER, NEW YORK
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
L DECEMBER 31, 1013
TOTAL
SPECIAL MISC NON-MAJOR
GRANT LIGHT AMBULANCE GOVERNMENTAL
{� FUND FUND FUND FUNDS
ASSETS
Cash and cash equivalents S - $23,431 S 66,749 $ 90,180
State and federal aid recervables 7,974 7,974
Due from other funds 14,035 - 312 14,447
Total assets $ 22,009 $23,431 S 67,161 $ 112,601
LLIABILITIES AND FUND EQUITY
LIABILITIES
L ACCuntS payable $ - $ 3,891 S - $ 3,891
Due to other funds 18,566 154 - 18,720
L Total liabilities 18,566 4,045 - 22,611
L
FUND BALANCE
t Unassioned 3,443 19,386 67,161 89,990
Total fund balance 3,443 19,386 67,161 89,990
LTotal liabilities
and fund balance $ 22,009 $23,431 $ 67,161 $ 112,601
L
L
4
L
Y
i
6
t
See independent auditors' report. 51
fr
EXHIBIT IN,
TOWN OF WAPPINGER,NEW YORK
L COMBINING STATEMENT OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL. FUNDS
FOR THE YEAR ENDED DECEMBER 31,2013
TOTAL.
MISC NON-MAJOR
SPECIAL LIGHT AMBULANCE GOVERMENTAL
GRANT FUND FUND FUNDS
REVENUES
Propeny taxes $ - $47,659 $ 395,000 $ 442,659
Real property taxes items - - 61 61
Departmental Income 97,750 - - 97,750
lntereovemmental charges - - -
Use of money and property - 19 95 114
Miscellaneous local sources - - -
Total revenues 97,750 47,678 395,156 540,584
EXPENDITURES
General government support - - - -
Health - - 395,000 395,000
transportation - 45,066 - 45,066
Home and community service 89,479 89,479
Fmployu benefits - - - -
Total expenditures 89,479 45,066 395,000 529,545
x Excess (deficiency) of
FY revenues over expenditures 8,271 2,612 156 11,039
Other financing sources:
Operating transfers in
Operating transfers out - - - -
Total other financing sources - - -
Excess(deficiency)of revenue and other
and other sources over expendiules
and other uses 8,271 2,612 156 11,039
Fund Balance,December 31, 2012 (4,828) 16,774 67,005 78,951
Fund Balance, December 31,2013 $ 3,443 $19,3S6 $ 67,161 S 89,990
i
Sec independent auditor report. 52
L
L Exhibit V
TOWN OF WAPPINGER, NEW YORK
SCHEDULE OF FINDINGS, RECOMMENDATIONS AND RESPONSES
FOR THE YEAR FNDED DECEMBER 31, 2013
L SECTION I - SIGNIFICANT DEFICIENCIES:
PRIOR YEAR FINDINGS - CONTINUING:
Finding 1 — Infrastructure Reporting
Finding: As part of the implementation of GASB Statement #34, the Town was
required to retroactively report and depreciate infrastructure assets as of
December 31, 2003, by December 31, 2007, The Town has yet to do so.
� Cause: The Town has not completed an inventory of its infrastructure assets.
Effect: The Town's government-wide financial statements can be materially mis-
stated by this omission.
Recommendation: The Town should develop and implement a plan to inventory all its
It infrastructure assets, record and depreciate them.
L
Response: The Town has made an inventory of all its water and sewer infrastructure
assets. Efforts will be made to ensure an inventory of the retraining assets
s made.
i
L Finding 2— Escrow Recordkeeping
Finding: The Town has applied considerable effort in the reconciliation of applicant
escrow subsidiary ledgers to the Town's general ledger balances, however
material differences continue to exist, the amounts of which change from
year to year. Such changes indicate an unreliable reconciliation
methodology. Our examination of the escrow reconciliation revealed the
following:
. As of December 31, 2013, the escrow subsidiary ledgers exceeded the
general ledger balances by 5197,747.
. Comments related to escrows have been made since 1993;
L Cause: In the past there existed a lack of communication between the Planning
Department and the Accounting Department regarding fees charged to
individual escrows. Individual schedules were not always updated and
invoices were coded incorrectly. Reconciliations between the Planning
Department and the Accounting Department were not performed regularly
so that these errors were not caught on a timely basis.
L Effect: The Town is responsible for payment of fees that should be taken from
escrow accounts. If not reconciled timely, the Town may not be able to
Lrecover these fees from the rightful applicant.
53
L
L
TOWN OF WAPPINGF,R, NEW YORK
SCHEDULE OFFINDINGS, RECOMMENDATIONS AND RESPONSES (CONI"D)
FOR THE YEAR ENDED DECEMBER 31,2013
Finding 2—Escrow Recordkeeping (Cont'd.)
Recommendation: No amounts should be returned to an applicant until a thorough review of
all transactions has been made, including confirming receipt of escrow
funds received and analysis of all disbursements made on that applicants
behalf. This will serve as a check that funds are not being returned
appropriately.
A significant portion of the outstanding escrow liability pertains to
inactive applications. The Town should re-review these balances,
including making inquiries of engineers and attorneys regarding their fees
related to these applicants, to confirm that all appropriate disbursements
have been charged to the appropriate applicants.
The analysis of Escrow schedules should continue to be completed on a
monthly basis, comparing department receipt records and charges posted
to individual escrow schedules to general ledger transactions. Names of
escrows should be consistent, such as code and name of property, to avoid
confusion between department and general ledger transactions.
Response: Differences between escrow subsidiary ledgers and the general ledger are
largely historical. Currently, invoices are entered into the subsidiary
escrow ledgers as they are received. Payment to professionals for escrow
services are made only with sufficient balance in escrow accounts,
g otherwise they are put on hold. Escrow account owners are contacted by
L phone and mail on a regular basis to replenish overdue accounts. The
reconciliation process in place has ensured that there are no material
differences between the subsidiary ledgers and the general ledger for new
accounts and ongoing transactions.
Finding 3 • Escrow Funds Negative Balances
Finding: Payments have been made in excess of escrow amounts collected resulting
in excess payments being made on behalf of individual project
owners/developers. As of December 31, 2013, 136 escrow accounts
indicated debit/negative balances totaling $138,827, of a total of 330
accounts amounting to$517,462.
Cause: The Town collects escrow funds to ensure that costs incurred by the
Town, while projects or subdivisions are being considered by the Planning
Board, are borne by the applicants. The Town maintains records for each
project/applicant so that balances can be monitored; however, in numerous
cases the disbursements exceeded the escrow collected.
r`
�. Effect: Unanticipated liabilities could be incurred by the Town for which no
revenues/funds have been provided.
@ 54
L
i. TOWN OF WAPPINGER, NEW YORK
SCHEDULE OF FINDINGS, RECOMMENDATIONS AND RESPONSES (CONT'D)
FOR THE YEAR ENDED DECEMBER 31. 2013
L
Finding 3 - Escrow Funds Negative Balances (Confd.)
Recommendation: We note that the Town Board authorized legislation during 2002 and 2006
which provided for policies and procedures to ensure that the Town does
not subsidize applicant review costs. However, we note that debit
balances have not significantly changed from 2006 through 2013,
($184,812, $171,058, $151,770, $138,115, $157,583, $154,279, and
$143,344, $138,827 respectively). Also, as noted above a significant
portion of these balances pertain to inactive or old applications, amounting
to $107,440. Along with the reconciliations noted above, we recommend
that the Town make the confirmation and collection of these balances a
priority, reviewing the pertinent documentation and determining a course
of action for collection of each account.
Response: All escrow account balances earmarked for reimbursements are reviewed
F before any payment is made. The Town will continue to work with its
Ir attorney on the collection of inactive /old escrow account balances.
SECTION II - OTHER FINDINGS:
PRIOR YEAR FINDING - CONTINUING:
Finding 4—Due To/From Balances
Finding: The Town's Due To Other Funds/Due From Other Funds balances total
$344,897. Of that, the General Fund — Town-Wide owed funds with a
funding source that was not Town-Wide(special districts) $222.874.
Cause: Inter-fund balances were not re-paid by year-end.
Effect: The Town is not in compliance with General Municipal law which
requires that such funds be paid by the end of the year. Further
appropriate interest should be paid if lending occurs between funds with
different taxpayer bases.
h
� Recommendation: The Town should review the inter-fund balances periodically, re-paying
these balances or at a minimum, determining a re-payment plan.
Response: Outstanding inteifund debts will be paid by end of the year.
s
i�
� 55