2016 Financial Statements FINANCIAL REPORT
TOWN OF
WAPPINGPR, NEW YORK.
December 31, 2016
SEP a'TOWN OF
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LIMITED LIABILITY PARTNERSHIP
CERTIFIED PUBLIC" AC;t:;C)IIN"I`/lf`+TS BUSINESS DEVELOPMENT CONSUL"I'ANTS
FINANCIAL REPORT
Audited
TOWN OF WAPPINGER,NEW YORK
December 31, 2016
Audited for:
Members of the Town Board
Town of Wappinger,New York
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Audited by:
RBT CPAs, LLP
2678 South Road, Suite 101
Poughkeepsie,NY 12601
(845)485-5510
TOWN OF WAPPINGER,NEW YORK
TABLE OF CONTENTS
Page
Independent Auditor's Report 1-2
Management's Disenssion and Analysis(unaudited) 3-9
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Position 10
Statement of Activities and Changes in Net.Position 11
Fund Financial Statements:
Balance Sheet—Governmental Funds 12-13
Reconciliation of the Total Governmental Funds Balance Sheet to the Statement of Net Position 14
Statement of Revenues,Expenditures and Changes in Fund Balances_Governmental Funds 15-16
Reconciliation of the Statement of Revenues,Expenditures and
Changes in Fund Balance of Governmental Funds to the Statement of Activities 17
Statement of Net Position—Fiduciary Fund 18
Notes to the Basic Financial Statements 19-45
REQUIRED SUPPLEMENTAL INFORMATION:
Exhibit I
Budgetary Comparison Schedule—General Fund—Townwide,General Fund—Part-Town,
Highway Fund,Water Fund and Sewer Fund 46-50
Exhibit 11
Other Post-Employment Benefits Plan Schedule of Funding Progress 5 l
Exhibit III
Schedule of the Proportionate Share Of the Net Pension Liability 52
Exhibit IV
Schedule of Pension Contributions 53
OTHER SUPPLEMENTAL INFORMATION:
Exhibit V
Combining Balance Sheet—Non-Major Governmental Funds 54
Exhibit VI
Combining Schedule of Revenues,Expenditures and Changes in Fund Balances—
Non-Major Governmental Funds 55
Exhibit VII
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 Government Auditing Standards 56-57
Exhibit VIII
Schedule of Findings,Recommendations and Responses 58-63
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CEMARED PUBLIC ACCOUNTANTS BUSINESS DEVELOPMENT CONSULTANTS
INDEPENDENT AUDITOR'S REPORT
To the Supervisor and
Members of the Town Board
Town of Wappinger,New York
20 Middlebush Road
Wappingers falls,New York 12590
Report on the Financial Statements
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
31,2016,and the related notes to the financial statements,which collectively comprise the Town of Wappinger,New
York's basic financial statements as listed in the table of contents.
Management'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.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We 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.In 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.
Opinions
In our opinion,the financial statements referred to above present fairly,in all material respects,the respective financial
position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town
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of Wappinger,New York,as of December 31,2016,and the respective changes in financial position for the year thea
ended,in accordance with accounting principles generally accepted in the United States of America.
Prior Period Adjustment
As further described in Note P, the Town has re-stated beginning net position to reflect the recording of additional
revenue in the prior year.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion
and analysis, budgetary comparison information, other post-employment benefits schedule of funding progress,
schedule of the proportionate share of the net pension liability,and schedule of pension contributions,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 considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic,or historical context.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
I� because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the Town of Wappinger, New York's basic financial statements. The combining non-major fund schedules are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining non-major fund schedules 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 procedures, including comparing and 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, and
other additional procedures in accordance with auditing standards generally accepted in the United States of America.
In our opinion,the combining non-major fund schedules are fairly stated in all material respects in relation to the basic
financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated August 24, 2017 on our
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consideration of the Town of Wappinger,New York's internal control over financial reporting and on our tests of its f
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 Government Auditing Standards
in considering Town of Wappinger,New York's internal control over financial reporting and compliance.
(BT CPAs, LLP
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Poughkeepsie,New York
August 24,2017
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31,2016
(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 it
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
it
SUMMARY OF STATEMENT OF NET POSMON
Assets 2016 2015 Change
Non-Capital $ 16,336,474 $ 16,564,719 $ (228,245)
Capital 65,336,444 65,355,616 (19,172)
Total Assets 81,672,918 81,920,335 (247,417) !I
Deferred Outflow of Resources 2,825,619 939,091 1,886,528
Total Assets and Deferred Outflow of Resources $84,498,537 $ 82,859,426 $ 1,639,111
Liabilities
Current $ 6,242,776 $ 12,749,033 $(6,506,257)
Non-Current 25,313,313 20,256,195 5,057,118 �I
Total Liabilities 31,556,089 33,005,228 (1,449,139)
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Deferred Inflow of Resources 1,390,990 22,046 1,368,944
Total Liabilities and Deferred Inflow of Resources 32,947,079 33,027,274 (80,195)
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' Net Position
Capital 44,449,985 42,398,583 2,051,402
Restricted 2,439,947 963,182 1,476,765
Unrestricted 4,661,526 6,470,387 (1,808,861)
Total Net Position 51,551,458 49,832,152 1,719,306
Total Liabilities and Net Position $84,498,537 $82,859,426 $ 1,639,111 '
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2016
(Un-audited)
2.Financial Analysis of the Town as a whole(Continued)
SUMMARY OF STATEMENT OF ACI'IVrM AND CHANGES IN NET POSITION
Revenues 2016 2015 '_ Change
Program
Charges for Services $ 4,821,111 $ 4,397,224 $ 423,887
Operating Gants 137,827 5,215 132,612
Capital Grants 905,089 481,915 423,174
General Revenues
Property Taxes 8,199,157 8,125,786 73,371
Other Taxes 2,505,174 2,027,764 477,410
hives tment Earnings 278,769 361,787 (83,018)
Other Gants and Contributions 268,730 266,900 1,830
Other Revenues 190,776 135,827 54,949
Total Revenues 17,306,633 15,802,418 1,504,215
Expenses
General Government Support 3,122,576 2,362,489 760,087
Public Safety 709,670 684,766 24,904
Health 345,387 403,119 (57,732)
Transportation 3,773,607 3,860,403 (86,796)
Economic Assistance 6,516 2,237 4,279
Culture and Recreation 1,144,771 914,285 230,486
Home and Cotarmnity Service 5,994,487 5,345,476 649,011
Interest on Long TermDebt 645,715 765,965 (120,250)
Total Expenses 15,742,729 14,338,740 1,403,989
Change in Net Position 1,563,904 1,463,678 100,226
Net Position-beginning 49,832,152 41,407,306 8,424,846
Impleme0tation of GASB 68 - -(30,395) 30,395
Prior Period Atlus tment 155,402 6,991,563 (6,836,161)
Net Position-beginning,restated 49,987,554 48,368,474 1,619,080
Net Position-ending S 51,551,458 $49,832,152 $ 1,719,306
Governmental Funds:
GENERAL FUND
The General Fund consists of the General Town-Wide Fund and the General Part-Town Fund. The General
Town-Wide includes activities of the Parklands Trust Fund,Friends of Carnwath and the 9-11 Memorial Fund.
The General Fund is the chief operating fund of the Town. At the end of the year, the total fund balance of the
General Town-Wide Fund was $3,459,159, an increase of$531,029 from the prior year. $77,562 of the total
General Town-Wide Fund balance is in non-spendable form(trade up of inventory and prepaid expenses).
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2016
(Un-audited)
2.Financial Analysis of the Town as a whole(Continued)
GENERAL FUND(CONTINUED)
The remaining $3,381,597 is in spendable form as follows: $108,800 is restricted for debt service payment,.
$660,744 is restricted for recreation, and the remaining $2,612,053 represents spendable, unassigned fund
balance. The total hind balance in the General. Fart-Town Fund at the end of the year was $3,284,748, an
increase of $791,599 from the prior year. The surplus in the general fund was mainly due to better than
expected revenue from sales tax, franchise fee, building permits, planning board fee, fines & fees from the
Justice Court,and mortgage tax.
The following charts describe significant,categories of General Fund revenues and expenses:
General Fund Revenues 2016
%ll o Property 1-axes lid-rax lterns
;'State& Federal Aid
W Safes and Franchise Tax.
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2% U Use of Money& Property
51 "
jIs Departmental Income
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1 All Other
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General Fund Expenses 2016
0% ( General Government Support
u'u'wW Public Safety
sa Transportation
Culture and Recreation
Home and C"'ontmunity Services
Employee Benefits
W Debt Service
4% w AlIOther
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2016
(Un-audited)
2.Financial Analysis of the Town as a whole(Continued)
IIIGIIW'AY FUND
The Highway Fund ended the year with $1,769,981 in Fund Balance, of which $612,893 is non-spendable,
$28,077 is restricted for debt service payment and$1,129,011 is assigned for highway activities.
The following charts describe the significant categories of Highway Fund revenues and expenses:
Highway Fund Revenues 2016
i%
), M Property faxes
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81 Sales Tax
1,
State&federaV Aid
Other Revetwe
1 ......,_........ . , .. ...,,.o�,, .........._ .. . ._, . ... ....r .,.w oom oo, .......... ..A
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Highway (Fund Expenses 2016
Street Maintenance
M Permanent [toad
Improvements
nit Snow Renuovai
iM General Government
Sanpport
f y f Machinery PLirchase
and Maintenance
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Employee Benefits
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twt Debt Service.
WATER FUNDS
The Town operated four water districts during 2016 with an overall. Fund Balance of$2,899,878. Operating
revenues totaled$2,340,317 with operating expenses totaling$2,073,167 resulting in an excess of revenues over
expenditures in the amount of$8.67,150. The excess is the result of strong and prudent budgeting practices.
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2016
(Un-audited)
2.Financial Analysis of the Town as a whole(Continued)
SEWER AND DRAINAGE FUNDS
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The Town operated fourteen sewer and drainage districts during 2016, with an overall fund balance of Is
$2,532,192, the main sewer district being the United Wappinger Sewer District, with a fund balance of
$2,081,345. Operating revenues for the combined sewer and drainage districts totaled $3,422,943 with
operating expenses totaling $3,112,909 resulting in an excess of revenues over expenditures in the amount of
$310,034.The excess is the result of strong and prudent budgeting practices.
BUDGETARY HIGHLIGHTS
The 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 been explained in the paragraphs above.
3.Activities Regarding Capital Assets,Long and Short Term Debt
The Town spent approximately $2.3 million on six capital projects in 2016. The six projects were: Aeration
System Replacement at the Tri-Municipal wastewater treatment plant,highway equipment,filtration of Atlas&
Hilltop wells, the Meadowood and route 9 loops, United Wappinger water meter replacement, resurfacing of
various town roads,and the Wappinger Water Main Extension project sponsored by New York City Department
of Environmental Protection(NYCDEP).
Phase I of the Wappinger Water Main Extension project above was completed in 2013. Phase I of the project ;I
involved the construction of the water main from United Wappinger Water District to NYCDEP Shaft 6 parcel
on River Road. Phase II of the project involved the installation of a new water distribution system in the
Chelsea Hamlet area and was substantially completed in 2015.
The filtration improvements, consisting of the installation of cartridge filtration units at the Atlas and Hilltop i
well fields and the construction of water main connection loops for the Meadowwood well field and the Route 9
area was budgeted to cost$3,621,000 and is currently in progress.
LONG TERM DEBT
Moody's Investors Service upgraded the Town's credit rating in April 2017 from Aa3 to Aa2. The upgrade
reflects the town's significantly improved financial position driven b
the adoption of strong budgetary et�Ycontrols
and the elimination of fund balance appropriations. The Aa2 rating further incorporates the town's large,
residential tax base with above average resident wealth levels, elevated debt compared to budget size, and low
pension burden. The rating upgrade will allow for better competitive bidding for future debt issues. Similarly in
March 2017, Standards and Poor's upgraded the Town's credit rating to AA+ up from AA following the
Town's refunding bonds of 2016 citing strong liquidity and budgetary flexibility by the Town.
Total long term serial bond debt at the end of 2016 was $21,045,610. Of this debt,$3,204,197 is attributable to
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the General fund, $4,333,186 to the Highway Fund, $4,118,469 to the sewer districts fund, and $9,389,758 to
the water districts fund. Water and sewer serial bonds debt is paid for by the property owners in the respective
water and sewer districts.
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2016
(Un-audited)
3.Activities Regarding Capital Assets,Long and Short Term Debt(Continued)
LONG TERM DEBT(CONTINUED)
In March 2016, the Town issued Public Improvement (Serial) Bonds, in the amount of $5,840,610 by
converting existing outstanding Bond Anticipation Notes to Serial Bonds.Repayments for the$5,840,610 Serial
bonds will begin in 2017 through 2036.In April 2016,The Town Board refunded the$11,580,000 Serial Bonds
2007 and a portion of the $3,362,000 Serial Bonds 2009 Bond to realize a net present value savings of
approximately$942,000 over 13 years by issuing a new$8,520,000 refunding serial bonds, 2016. Repayments
for the refunded bonds will begin in 2016 and continue until 2029.
SHORT TERM DEBT
The Town had total Bond Anticipation Notes (BAN)Outstanding of$3,438,000 at the end of 2016, This BAN
was converted into a serial bond of$3,370,000 in March 2017. The amount outstanding from the serial bond is
made up of$562,000 for Wappinger Creek pump station and$563,000 for Aeration System Replacement,both
projects of Tri-Municipal Sewer Commission, $1,775,000 for Water Meter Replacement, a project of United
Wappinger water district, and $470,000 outstanding for Highway Department used for the purchase of heavy
duty trucks and tractors.
4.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.
The Town continues to have a shared service agreement with the Town of Fishkill for a Joint Assessor. This
program is known as the Coordinated Assessment Program or CAP. The will continue to deliver cost savings to
the Town.
The assessment roll established in 2016 for 2017 taxes resulted in homestead assessments increasing by an
average of 1.00%. However, there was a small change in the proportion of non-homestead to homestead
assessments. Non-homestead assessments for 2017 were 42% of the total and homestead assessments were
58%.The Town adopted a teduced overall tax levy increase of 0.13%in 2017 down from 0.73%in 2016.
The Town signed a Memorandum of Agreement(MOA)with CSEA for highway employees covering the:fiscal
year 2014 through 2015. Likewise, the Town secured a collective bargaining agreement with the Teamsters
Union covering the period 2014 through 2017.The Town has met with Teamsters Union officials and is well on
the way to a mutually favorable Collective Bargaining Agreement that will be both affordable and sustainable.
The negotiations are anticipated to be completed and ratified by the end of November 2017. It appears that the
CBA with Teamsters will be for the term of 3 years—January 1,2018 until December 31,2020. The MOA with
the CSEA was extended to cover the period January 1,2016 through December 31,2017.
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MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2016
(Un-audited)
4.Currently Known Facts Bearing on the Future(Continued)
The Town Board approved the Department of Environmental Conservation's recommendations for a new
filtration and monitoring system at Meadow Wood well field,re-drilling of two wells at Hill Top and drilling of
a third well at the Atlas well field. This work will be a part of the capital improvements of the United
Wappinger Water District. The Town Board is actively working on obtaining grants to do projects that are
needed to improve the current infrastructure as well as increase the user capacity to expand the Town's
municipal water and waste-water systems. The Town has been awarded a State Aid Municipal Grant as well as
a Tax Relief Grant from Dutchess County for addressing the inadequate and poor quality water for 83 homes.
The Town Board has also approved the necessary capital improvement work at the Emergency Services
Building located at 18 Middlebush Road.The 20 year old building has met some life expectancy on its HVAC,
electrical components, plumbing defects as well as some general construction that will address some of the
much needed attention. The first step to addressing the building's needs was to replace the roof. The roof
project was completely funded by a grant that the Town Board obtained from a Dutchess County Shared
Services Grant.
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The Town is currently researching the feasibility of putting dry water and sewer pipes along County Route 28 j
(Old Hopewell Road) when Dutchess County DPW will be doing extensive work to improve the road
conditions. It is the Town's hope that water and sewer will be available to more neighborhoods at a lower cost
through savings on the cost of engineering and construction of laying pipes.
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The Town is currently looking at finding ways to address some of the congestion on Route 9 with the thought of it
working on a service road. The Town is addressing some of the community's needs such as specific focused l
parks; possibly constructing an outdoor exercise park for the residents, a toddler park and exploring the
feasibility of a fully universal park.
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TOWN OF WAPPINGER,NEW YORK
STATEMENT OF NET POSITION
DECEMBER 31,2016
GOVERNMENTAL
ACTIVITIES
ASSETS
Current assets:
Cash and cash equivalents $ 11,409,575
Cash and cash equivalents-restricted 1,934,147
Receivables(net) 2,369,173
Inventories 453,721
Prepaid expenses 169,858
Total current assets 16,336,474
Capital assets:
Land 8,162,217
improvements and inGastructure,net of depreciation 42,774,589
Buildings,machinery and equipment,net of depreciation 5,880,437
Construction in progress 8,519,201
Total capital assets 65,336,444
Total assets 81,672,918
Deferred outflows of resources 2,825,619
Total assets and deferred outflow of resources $ 84,498,537
LIABILITIES
Current Liabilities:
Accounts payable $ 381,544
Accrued liabilities and retainage payable 258,264
Bond anticipation notes payable 3,438,000
Deferred revenue 170,091
Due to customers 22,942
Due to other governments 73,989
Current portion of long-term liabilities
Landfill remediation liability 7,336
Bonds payable-Capita! 1,208,468
Bonds payable-Nan-capital 682,142
Total current liabilities 6,242,776
Non-current liabilities:
Judgment and claims 80,000
Compensated absence liabilities 273,153
Other postemployment benefits liability 4,189,749
Landfill remediation liability 141,442
Bonds payable-Capital 16,239,991
Bonds payable -Non-capital 2,915,009
Net employedretirement system liability 1,473,969
Total non-current liabilities 25,313,313
Total liabilities 31,556,089
Deferred inflows of resources 1,390,990
Total liabilities and deferred inflow of resources 32,947,079
NET POSITION
Net investment in capital assets 44,449,985
Restricted for debt service 870,503
Restricted for miscellaneous 402,900
Restricted for capital expenditures 505,800
Restricted for recreation 660,744
17nrestricted 4,661,526
Total net position 51,551,458
Total liabilities,deferred innows of resources,and net position $ 84,498,537
See Notes to the Financial Statements
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TOWN OF WAPPINGER,NEW YORK
STATEMENT OF ACTIVITIES AND CHANGES 174 NET POSITION
FOR THE YEAR ENDED DECEMBER 31,2016
NET(EXPENSE)
REVENUE AND
CHANGES IN
NET POSITION
CHARGES OPERATING CAPITAL
FOR GRANTS AND GRANTSAND GOVERNMENTAL
FUNCTIONSIPROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES
Governmental Activities:
General government support $ 3,122,576 S 16,754 $ 4,400 $ $ (3,101,422)
Public safety 709,670 768,072 58,402
Health 345,387 6,228 (339,159)
Transportation 3,773,607 2,750 244,251 (3,526,606)
Economic assistance&opportunity 6,516 - - - (6,516)
Culture and recreation 1,144,771 70,135 (1,074,636)
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Florae and community services 5,994,487 3,957,172 133,427 660,838 (1,243,050)
Interest on long-term debt 645,715 - - (645,715)
Total governmental activities 15,742,729 4,821,111 137,827 905,089 (9,878,702)
General revenues
Taxes:
Real property takes 8,098,315
Real property tax items 100,842
Sales tax distribution 1,284,683
Mortgage tax distribution 752,471
Franchise taxes 468,020
Earning on investments 278,769
Grants and contributions not restricted to specific programs 268,730
Special item-Gain on sale of property and compensation for loss 67,650
Refund of prior year's expenditures 11,262
Miscellaneous 111,864 q
Total general revenues,special items and transfers 11,442,606
Change in net positron 1,563,904
Net position-beginning,before restatement 49,832,152 I
Prior period adjustment(Note 1') 155,402
Net position-beginning,restated 49,987,554
Net position-ending $ 51,55 E,458
See Notes to the Financial Statements
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TOWN OF WAPPINGER,NEW YORK
BALANCESHEET
GOVERNMENTAL FUNDS
DECEMBER 31,2016
GENERAL GENERAL
TOWN-WIDE PART-TOWN HIGHWAY
FUND FUND FUND
ASSETS
Cash and cash equivalents $ 2,508,376 $ 2,057,907 $ 1,508,412
Cash and cash equivalents-restricted 769,544 566,950 28,077
Receivables:
Charges for services _ - -
Other 72,819 168,460 -
Due from other funds 8,134 - -
Due from other governments 36,081 498,792 62,656
State and federal aid receivable 188,003 - -
Inventory,at cost - - 453,721
Prepaid expenses 77,562 36,866 159,172
Total assets $ 3,660,519 $ 3,328,975 $ 2,212,038
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable $ 133,080 $ 33,337 $ 96,280
Accrued expenses 523 - 20,112
Due to customers _ _ _
Bond anticipation notes payable - _ _
Due to other funds 6,553 10,890 325,512
Due to other governments 58,297 - 153
Deferred revenues 2,907 - -
Total liabilities 201,360 44,227 442,057
FUND BALANCE
Nonspendable:
Prepaids and inventory 77,562 36,866 612,893
Restricted:
Debt service 108,800 164,050 28,077
Miscellaneous - 402,900 -
Capital Expenditures _ _ _
Recreation 660,744 - -
Assigned - 2,680,932 1,129,011
Unassigned 2,612,053 - -
Total fund balance 3,459,159 3,284,748 1,769,981
Total liabilities and fund balance $ 3,660,519 $ 3,328,975 $ 2,212,038
See Notes to the Financial Statements
12
CAPITAL NON- TOTAL
WATER SEWER PROJECTS MAJOR GOVERNMENTAL
FUND FUND FUND FUNDS FUNDS
i
$ 2,314,921 $ 1,241,912 $ 1,616,300 $ 161,747 $ 11,409,575
86,694 482,882 - - 1,934,147
508,971 833,391 - - 1,342,362
- - - - 241,279
- 17,687 904,839 - 930,660
- - - - 597,529
- 188,003
- - 453,721
3,054 - - - 276,654
$ 2,913,640 $ 2,575,872 $ 2,521,139 $ 161,747 $ 17,373,930
I
i
$ 20,397 $ 10,859 $ 82,803 $ 4,788 $ 381,544
- - - - 20,635
22,942 - - - 22,942
- - 3,438,000 - 3,438,000
562,443 25,262 - - 930,660 jl
7,980 7,559 73,989 j!I,
- - 167,184 - 170,091
613,762 43,680 3,687,987 4,788 5,037,861
3,054 - - - 730,375
86,694 482,882 - - 870,503
- - - - 402,900
- 505,800 - 505,800
- - - - 660,744
2,210,130 2,049,310 156,959 8,226,342 j
- - (1,672,648) - 939,405
2,299,878 2,532,192 (1,166,848) 156,959 12,336,069
$ 2,913,640 $ 2,575,872 $ 2,521,139 $ 161,747 $ 17,373,930
See Notes to the Financial Statements
13
TOWN OF WAPPINGER
RECONCILIATION OF THE TOTAL GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
DECEMBER 31,2016
Total Long-Term Reclassifications Statement
Governmental Assets and and of Net
Funds Liabilities Eliminations Position
ASSETS
Cash and cash equivalents $11,409,575 $ - $ - $11,409,575
Cash and cash equivalents-restricted 1,934,147 - - 1,934,147
Receivables:
Charges for services 1,342,362 - - 1,342,362
Other 241,279 241,279
Due from other funds 930,660 - (930,660) i
Due from other governments 597,529 - - 597,529
State and federal aid receivable 188,003 - - 188,003
Inventory,at cost 453,721 - - 453,721
Prepaid expenses 276,654 (106,796) 169,858
Capital assets 65,336,444 - 65,336,444
Deferred outflows of resource,, - 2,825,619 - 2,825,619
Total assets and deferred outflows of resources $17373930 $68,055,267 $ 930,660 $84,498,537
LIABILITIES
Accounts payable $ 381,544 $ - $ - $ 381,544
Accrued liabilities 20,635 237,629 - 258,264
Due to customers 22,942 - - 22,942
Bond anticipation notes payable 3,438,000 - 3,438,000
Due to other funds 930,660 (930,660) -
Due to other governments 73,989 - - 73,989
Deferred revenues 170,091 170,091
judgment and claims - 80,000 - 80,000
Compensated absence liabilities - 273,153 - 273,153
Other postemployment benefits liability - 4,189,749 4,189,749
Landfill remediation liability 148,778 148,778
Bonds payable-Capital - 17,448,459 - 17,448,459
Bonds payable -Non-capital - 3,597,151 - 3,597,151
Net employee retirement system liability - 1,473,969 - 1,473,969
Deferred inflows of resource: 1,390,990 - _ 1,390,990
Total liabilities and deferred inflows of resources 5,037 861 28,839,878 (930,660 32,947,079
Total fund balances 12,336,069 39,215,389 - 51,551,458
Total liabilities,deferred inflows of resources,
and fund balances $17,373,930 $68,055,267 $ 930,660 $84,498,537
See Notes to the Financial Statements
14
IIS
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED DECEMBER 31,2016
GENERAL GENERAL
TOWN-WIDE PART-TOWN HIGHWAY
FUND FUND FUND
REVENUES
Real property taxes $ 2,795,155 $ $ 3,269,283
Real property taxes items 99,400 - -
Non property taxes items - 1,429,247 323,456
Departmental income 140,474 172,958 -
Use of money and property 151,354 1,741 1,481
Licenses and permits 4,808 352,997 2,750
Fines and forfeitures 373,002 - -
Sale of property and compensation for loss 36,963 - 17,000
Miscellaneous local sources 100,419 6,137 18,068
State aid 1,023,771 - 241,101
Total revenues 4,725,346 1,963,080 3,873,139
EXPENDITURES
General government support 1,774,956 180,508 114,962
Public safety 29,625 522,010 -
Health 12,259 - -
Transportation 168,289 36,965 2,040,762
Economic assistance&opportunity 650 5,866 -
Culture and recreation 924,141 70,392
Home and community services 204,238 159,603 -
Employee benefits 678,806 227,850 815,026
Debt service 401,353 123,689 450,389
Total expenditures 4,194,317 1,326,883 3,421,139
Excess of revenues over expenditures 531,029 636,197 452,000
Other financing sources:
Operating transfers in - - -
Operating transfers out (149,360)
Proceeds of debt -
Bond premium - -
Refunding debt escrow payment - -
BANs redeemed from appropriations
Total other financing sources - - (149,360)
Excess(deficiency)of revenue and other
sources over expenditures and other uses 531,029 636,197 302,640
Fund Balance,December 31,2015,before restatement 2,928,130 2,493,149 1,467,341
Prior period adjustment(Note P) - 155,402 -
Fund Balance,December 31,2015,restated 2,928,130 2,648,551 1,467,341
Fund Balance,December 31,2016 $ 3,459,159 $ 3,284,748 $ 1,769,981
See Notes to the Financial Statements
15
I
CAPITAL NON-
WATER SEWER PROJECTS MAJOR TOTAL
FUND FUND FUND FUNDS FUNDS
$ 790,036 $ 798,164 $ - $ 445,677 $ 8,098,315
- - - 1,442 100,842
- 1,752,703
1,491,739 2,201,683 - - 4,006,854
2,449 119,277 2,262 205 278,769
42,300 38,400 - - 441,255
- - - - 373,002
13,687 - - - 67,650
106 265,419 660,839 - 1,050,988 j
- - - - 1,264,872
2,340,317 3,422,943 663,101 447,324 17,435,250
115,977 119,531 191,859 16,019 2,513,812
551,635
- - 323,174 335,433
1,121,361 44,953 3,412,330
- - 6,516 it
III _ 994,533
1,215,005 2,183,210 1,164,078 4,926,134 H
I 4,023 2,105 - 1,727,810
738,162 808,063 - - 2,521,656
2,073,167 3,112,909 2,477,298 384,146 16,989,859
I267,150 310,034 (1,814,197) 63,178 445,391
149,360 149,360
- - - (149,360)
- 14,360,610 14,360,610
- 1,197,380 1,197,380
- (9,605,957) (9 605 957
76,000 - 76,000
- 6,177,393 6,028,033
i
267,150 310,034 4,363,196 63,178 6,473,424
2,032,728 2,222,158 (5,530,044) 93,781 5,707,243
- - - - 155,402
2,032,728 2,222,158 (5,530,044) 93,781 5,862,645
$ 2,299,878 $ 2,532,192 $ {1,166,848) $ 156,959 $ 12,336,069
I
See Notes to the Financial Statements
is
I 16
is
TOWN OF WAPPINGER
RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31 2016
Total Long-Term Capital Long-Term Reclassifications Statement
Governmental Revenue and Related Debt and of
Funds Expenses Items Transactions Eliminations Activities!
REVENUES
Real property taxes $ 8,098,315 $ - $ $ - $ - $8, ,315
100
Real property taxes items 100,842 - - - - 100,842
Non property taxes items 1,752,703 - - 1,752,70?
Departmental income 4,006,854 - - - - 4,006,85q
Use of money and property 278,769 - 278,
Licenses and permits 441,255 - 441,2255
!
Fines and forfeitures 373,002 - - 373'00'
Sale of property and
compensation for loss 67,650 - - - 67,651
Miscellaneous local sources 1,050,988 (128,617) 922,37'
State aid 1,264,872 - - - 1,264 87,
Total revenues 17,435,250 (128,617) - - 17,306,63;
EXPENDITURES/EXPENSES
General government support 2,513,812 196,165 103,1b1 309,438 3,122,57!
-
158,147 709,67!
Public safety 551,635 43,441 (43,553) -
Health 335,433 2,824 7,130 345, 0
Transportation 3,412,330 270,485 (862,184) - 952,976 3,773,660
Fennomic assistance&opportunity 6,516 - 6,51
Culture and recreation 994,533 79,969 (131,184) - 201,453 1,144,77
Home and community services 4,926,134 52,256 917,431 - 98,666 5,994,48
Employee benefits 1,727,810 - - - (1,727,810)
Debt service 2,521,656 - - (1,875,94 645,71
Total expenditures/expenses 16,989,859 645,140 16,329 1,875,941 - 15 742,72
Excess/(deficiency)of revenues _ 11-56-3-19C
over expenditures 445,391 773,757 16,329 1,875,941
Other financing sourcesl(uses):
Operating transfers in 149,360 - - (149,360)
Operating transfers out (149,360) - 149,360
Proceeds of debt 14,360,610 - (14,360,610)
Bond premium 1,197,380 - - (1,197,380) -
Refunding debt escrow payment (9,605,957) - 9,605,957
BANS redeemed from appropriations 76,000 - - 76,000 -
Total financing sources/(uses) 6,028,033 - (6 028,033 -
Change in fund balances $ 6 473,424 $ 773 757 $ 16,329 $ 4,152,092 $ $1,563 91
See Notes to the Financial Statements
17
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF NET POSITION
FIDUCIARY FUND
DECEMBER 31,2016
AGENCY
FUNDS
ASSETS
Cash and cash equivalents $ 555,004
Total assets $ 555,004
LIABILITIES
Escrow funds returnable and other liabilities $ 555,004
Total liabilities 555,004
NET POSITION -
i
Total liabilities and net position $ 555,004
'i
See Notes to the Financial Statements
18
I
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2016
NOTE A-Summary of Significant Accounting Policies
The Town of Wappinger,New York,("Town")was incorporated on May 20, 1875,under the provisions of the Sta
of New York. The Town operates under a Town Board form of government, consisting of a Supervisor and fol
Councilmen/women. The Supervisor serves as the Chief Executive Officer and as the Chief Fiscal Officer of tl
Town.
The Town provides the following services:highway maintenance,water,sewer,planning,zoning,building and safe;
inspection,lighting,and culture and recreation.
The Town's financial statements are prepared in accordance with accounting principles generally accepted in tl
United States of America as applied to governmental units(GAAP).The Governmental Accounting Standards Boat
(GASB)is responsible for establishing GAAP for state and local governments through its pronouncements(Statemer
and Implementation Guides).
The more significant accounting policies established by GAAP and used by the Town in preparing its governmes
wide and fund financial statements are discussed below.
1. The Reporting Entity
The Town,for financial purposes,includes all of the funds relevant to the operations of the Town of Wappingi
New York. The financial statements include organizations, function and activities that are controlled by
dependent upon the Town.Control or dependence is determined on the basis of budget adoption,taxing authori
funding and appointment of the respective governing board. Under these criteria,no other entities are includ
in the Town's financial statements.
2. Basic Financial Statements–Government-Wide Statements
The Town's basic financial statements include both government-wide(reporting the Town as a whole)and W
financial statements(reporting the Town's major funds).Both the government-wide and fund financial stateme:
categorize primary activities as either governmental or business type activities.The Town's parks and recreatif
public works, and general administrative services are classified as governmental activities. The Town's wa
services are also classified as governmental activities since user fees are not intended to cover all costs includ
depreciation,
In the government-wide Statement of Net Position, the governmental activities columns is presented of
consolidated basis by column, and is reported on a full accrual, economic resource basis, which recognizes
long-term assets and receivables as well as long-term debt and obligations.The Town's net position is rcpor
in three parts—invested in capital assets,net of related debt;restricted net assets;and unrestricted net assets.1
Town first utilizes restricted resources to finance qualifying activities.
19
1
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) U
DECEMBER 31,2016
NOTE A-Summary a of Sinificant Accountina Policies Continued
2. Basic Financial Statements—Government-Wide Statements Continued
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 fimction(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. l
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.
3. 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:
governmental, 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 primary operating fluid of the Town or meets the
' following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund or
t enterprise fund are at least 10 percent of the corresponding total for all funds of that 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 for all governmental and enterprise
funds combined.
' The following fund types are used by the Town.
A. Governmental Funds
' The focus of the governmental finds' 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.
The following is a description of the governmental funds of the Town:
1. 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 another fund. The General Fund is
considered a major fund and is presented separately.
VIII'
20 !I'
1 j
it
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE A-Summary of Si nificant Accounting Policies Continued
3. Basic Financial Statements—Fund Financial Statements(Continued)
A. Governmental Funds Continued
2. General Fund—Part-Town is used to record revenues and expenditures related to services provided
residents living outside the Village of Wappingers Falls,such as police protection,planning and zoni
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 To,
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 water to i
Town's customers. The Water Fund is considered a major fund and is presented separately.
5. Sewer Fund is used to record the revenues and expenditures related to the delivery of sewer services
the Town's customers. The Sewer Fund is considered a major fund and is presented separately.
6. Capital Projects Fund is used to account for financial resources to be used for the acquisition s
construction of major capital facilities. The Capital Projects Fund is considered a major fund ant
presented separately. However, no budgetary comparison schedule is presented as requi
supplemental information,as the Town is not legally required to adopt an annual budget for the Cap
Projects Fund.
7. Non-Major Funds include those that are used to account for the proceeds of specific revenue soul
that are legally restricted to expenditures for specified purposes. These include the Lighting
Miscellaneous(Ambulance)Funds.
B. Fiduciary Funds
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore are
available to support Town programs.The reporting focus is on net position and changes in net position,
they are reported using accounting principles similar to proprietary funds.
The Town's fiduciary funds are presented in the fiduciary fund financial statements.Since by definition tl
assets are being held for the benefit of a third party and cannot be used to address activities or obligation
the government,these funds are not incorporated into the government-wide statements.
4. Basis of Accountin
Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in
accounts and reported in the financial statements. It relates to the timing of the measurements IT
regardless of the measurement focus applied.
21
- I
' TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
i
NOTE A-Summary of SiQnif cant Accountine Policies(Continued)
' 4. Basis of Accoun„fing(Conti illgd)
A. 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 recognized when earned and
expenses are recognized when incurred.
B. 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 general
obligation long-term debt,if any,is recognized when due.
5. Financial Statement Amounts
A. Cash and Cash E uiv lent
Cash and cash equivalents includes amounts in demand and time deposits. 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 collateralized by the banking
institutions with investments governed under state statutes,
The cash and cash equivalents of the Town at December 31,2016,are as follows-
CAPITAL NON-
CEIERAL tUG11WAY WATER SEWIR PROJECTS MAJOR
FUNDS FUND FUND FUND FOND FUNDS TOTAL.
Non-Interest
Bearing Accounts $ 850 $ -
$ $ $ $ $ 850
Interest nearing
Accounts 5,901,927 1,536,489 2,401,615 1,724,794 1,616,300 161,747 13,342,872
TOTALS $5,902,777 $1,536,489 $2,401,615 $1,724,794 $ 1,616,300 $161,747 $13,343,722
Custodial credit risk is the risk that in the event of a bank failure,the Town's deposits 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 Deposit and Investment Risk Disclosure directs that deposits be disclosed as exposed
to 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 depository institution's agent and not subject to custodial credit risk.
22
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE A-Summary of Significant Accountin Policies Continued
5. Financial Statement Amounts(C2tnue
B. Inventories
Inventories consist of significant expendable supplies,primarily sand and road salt,and are carried at cost..
C. Capital Assets
Capital assets purchased or acquired with an original cost of$500 or more are reported at historical cost
estimated historical cost. Contributed assets are reported at fair market value as of the date receive
Additions, improvements and other capital outlays that significantly extend the useful life of an asset a
capitalized.Other costs incurred for repairs and maintenance are expensed as incurred.
Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives:
Buildings 15-40 years
Infrastructure—Water&Sewer 40 years
Infrastructure—Roads 15 years
Machinery and equipment 5-15 years
Improvements 10-30 years
Infrastructure assets include roads,bridges,underground pipe(other than related to utilities),traffic sign,
etc.These infrastructure assets are likely to be the largest asset class of the Town.
D. Fund Balance Classifications
Fund balance is presented in five different classifications which focus on the constraints imposed on resour
in governmental funds, rather than on availability for appropriation. The classifications include: n
spendable,restricted,committed,assigned,and unassigned.
Non-spendable.consists of assets that are inherently non-spendable in the current period either becausf
their form or because they must be maintained intact,including prepaid items,inventories,long-tern►porti
of loans receivable,financial assets held for resale,and principal of endowments.
Restricted consists of amounts that are subject to externally enforceable legal purpose restrictions impe
by creditors, grantors,contributors,or laws and regulations of other governments;or through constitutic
provisions or enabling legislation.
Committed consists of amounts that are subject to a purpose constraint imposed by a formal action of
government's highest level of decision-making authority before the end of the fiscal year, and that req
the same level of formal action to remove the constraint. The Board is the decision-making authority
can,prior to the end of the fiscal year,commit fund balance.
23
r:
: p
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE A-Summary of Significant Accounting Policies(Continued)
5. Fangial Statement Amounts(Continued) di
D. Fund Balance Classifications(Continued)
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 j
other than the general fund,assigned 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 ;I
restricted,committed,or assigned.
When resources are available from multiple classifications,the Town spends funds in the following order:
restricted,committed,assigned,unassigned.
i'
The following details the restricted allocations and amounts of fund balance December 31,2016:
i
The Town has $505,800 of restricted fund balance resulting from funds received from the NYC DEP for
future capital projects in the United Wappinger Water District. The Town has$660,744 of unassigned but
restricted funds for recreation, which includes funds commonly referred to as Parkland Trust deposits, as
well as funds set-aside for the Carnwath property. The Town also has $870,503 in funds restricted for debt
service payments,and$402,900 in funds restricted for other miscellaneous purposes.
E. Deficit Fund Balances
j
The capital projects fund had a deficit fund balance at December 31,2016. The deficit will be eliminated as
short term debt is converted to permanent financing.
F.Accumulated Compensated Absences
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;
2. The obligation relates to rights that vest or accumulate;
3. Payment of the compensation is probable;
4. The amount can be reasonably estimated.
24
ill
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE A-Summary of Sienificant Accounting Policies(Continued)
5. Financial Statement Amounts(Continued)
F.Accumulated Compensated Absences(Continued)
In accordance with the above criteria, the Town has accrued a liability for vacation pay, which has l
earned and not taken by Town employees as of December 31, 2016,in the amount of$273,153. The i
current portion (the amount estimated to be used in subsequent fiscal years) for governmental fund
maintained separately and represents a reconciling item between the fund and government-V
presentations. It is anticipated that none of these liabilities will be liquidated with expendable avail
financial resources.
G.Interfund Activity
Interfund activity is reported as loans,services provided,reimbursements or transfers. Loans are reporte
interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Sery
provided, deemed to be at market or near market rates, are treated as revenues and expenditures/exper,
Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduce
related cost as a reimbursement.All other interfund transactions are treated as transfers. Transfers bete
governmental funds are netted as part of the reconciliation to the government-wide financial statements,
H.Budgets
The Town employs formal budgetary accounting as a management tool,on a basis consistent with genes
accepted accounting procedures. During the year,a budget was adopted and modified by the Town Coy:
for the General Fund—Town Wide, General Fund— Part Town, Highway Fund, Water Fund, and St
Fund. Budgetary controls are established or adopted for the Capital Projects Fund on a project basis. Uni
appropriations of the annually budgeted finds lapse at the end of the year.
As of December 31,2016,material over-expenditures occurred in the sewer fund totaling over$133,Oa
excess of budgetary appropriations. However,sufficient revenues were recorded to cover these expendih
I.Property Taxes
The Town submits an approved budget to the Dutchess County Commissioner of Finance by Decembc,
of the previous year. The County then establishes the warrant for the year,which is due and payable o
about January 1 of each year. The Town collects the taxes on behalf of the Town and County without pen
through February 28th and with penalties and interest through August 31 st. The Town's portion of the t
is recognized and transferred prior to the County's portion. Therefore, the Town receives its entire
leaving the unpaids to be collected by the County Commissioner of Finance.
25
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE A-Summa of Si nificant Accountin Policies Continued
Summary e e (Continued)
5. Financial Statement Amounts(Co
J. Lone-Term Liabilities
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 long-term obligations, only that portion
expected to be financed from expendable available financial resources is reported as a fund liability of a
governmental fiord. The remaining portion of such obligations is only reported in the statement of net assets,
long-term liabilities.
K.Risk Manaeement
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 commercial insurance. Judgments
I
and claims are recorded when it is probable that an asset has been impaired or a 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.
L.Use of Estimates
I
The preparation of basic financial statements,in conformity with accounting principles generally accepted in
I the United States of America, requires management to make estimates and assumptions that affect the
amounts reported in the basic financial statements and the accompanying notes. Actual results could differ
from those estimates.
M.Subsequent Events
J
Management has evaluated subsequent events for disclosure and/or recognition in the financial statements
' through the date that the financial statements were available to be issued,which date is August 24,2017.
Subsequent events noted during management's evaluation are detailed in Note O.
NOTE B — Exolanation of Certain Differences Between Governmental Fund Statements and Government-
Wide Statements
fDue to the differences in the measurement focus and basis of accounting used in the governmental fund statements
and the government-wide statements, certain financial transactions are treated differently. The differences result
primarily from the economic focus of the government-wide statements,compared with the current financial resources
focus of the government funds.
E
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE B -- Explanation of Certain Differences Between Governmental Fund Statements and Governmen
Wide Statements(Continued)
1. Total Fund Balances of Governmental Funds vs.Net Position of Governmental Activities:
Total fund balances of the Town's governmental funds differ from "net position" of governmental activitii
reported in the Statement of Net Position. This difference primarily results from the additional long-ter
economic focus of the Statement of Net Position versus the solely current financial resources focus of tl
Governmental Funds Balance Sheet.
The basic financial statements contain a tabular reconciliation of the items creating the differences between Fur
Balance reported in the Governmental Fund Statements and Net Position reported on the Statement of N
Position.
Total fund equity for governmental funds $ 12,336,069
Total net position reported for governmental activities in the statement
of net position is different because:
Capital assets used in governmental activities are not
financial resources and therefore are not reported in the funds. 65,336,444
Long-term liabilities,including bonds payable,landfill remediation,
compensated absences,other postemployment benefits,
judgement and claims and net employee retirement system
liabilities are not due and payable in the current period
and therefore are not reported in the funds. (27,211,259
Gants received for capital assets are deferred and amortized
over the life of the asset. (18,896
Residual fund balance and related receivables Fromthe
Tri-Municipal Sewer Commission is not reported in the funds. 456,182
Premiums on bond refundings are deferred and amortized over the life of the debt. (1,197,380
Losses on bond refundings are deferred and amortized over the life of the debt. 540,95)
Deferred outflows related to the employce retirement system
liability are not reported in the funds. 1,828,484
Deferred inflows related to the employee retirement system
liability are not reported in the funds. (174,714
Prepaid expenses related to the employee retirement system are reported
in the funds,but are adjusted in the government wide statements. (106,79E
Retainage payable is not reported in the funds. (36,733
Accrued interest is not reported in the funds.
Totalnet position of governmental activities $$ 5
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016 "
NOTE B — Explanation of Certain Differences Between Governmental Fund Statements and Government-
Wide Statements(Continued)
2. Eaulanation of Differences Between Governmental Funds Operating Statement and the Statement of
Activities:
Differences between the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund
Balance and the Statement of Activities fall into one of three broad categories:
• Long-term revenue differences arise because governmental fiords report revenues only when they are
considered "available", whereas the Statement of Activities reports revenues when earned. Differences in
long-term expenses arise because governmental funds report on a modified accrual basis,whereas the accrual
basis of accounting is used on the Statement of Activities.
• Capital related differences include the difference between proceeds for the sale of capital assets reported on
governmental fund statements and the gain or loss on the sale of assets as reported on the Statement of
Activities, and the difference between recording an expenditure for the purchase of capital items in the
governmental fund statements and depreciation expense on those items as recorded in the Statement of
Activities.
• Long-term debt transaction differences occur because both interest and principal payments are recorded as
expenditures in the governmental fund statements when paid,whereas interest payments are recorded in the
Statement of Activities as incurred and principal payments are recorded as a reduction of liabilities in the
Statement of Net Position.
I'
The basic financial statements contain a detailed reconciliation of the items creating the differences between the ('
change in fund balance reported in the governmental fund statements and the change in net position reported in
I
the Statement of Activities.
Net change in fund balance-total government funds $ 6,473,424
The change in net position reported for governmental activities in the
statement 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 their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlays exceeded depreciation expense in the current period. (19,172)
Grants received for capital projects are amortized over the life of the asset. This
is the amount by which the grant exceeded the amortization in the current period. 3,154
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE B —Explanation of Certain Differences Between Governmental Fund Statements and Governme-
Wide Statements(Continued)
2. Explanation of Differences Between Governmental Funds Oneratina Statement and the Statement
Activities(Continued):
Bond proceeds are reported as financing sources in governmental funds and
thus contribute to the change in fund balance. In the statement of net position,
however,issuing debt increases long-term liabilities and does not affect the
statement of activities. Similarly,repayment of principal is an expenditure in
the governmental funds but reduces the liability in the statement of net position.
Debt issued:
Bond anticipation notes redeemed (76,000)
Proceeds frombond issuance (14,360,610)
Repayments:
Bond anticipation note principal 76,000
Bond principal 11,355,957
(3,004,653)
Premiums on bond refundings are deferred and amortized over the life of the debt. (1,197,380)
In the statement of activities,interest is accrued on outstanding bonds,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 2016. 49,941
Change in residual fund balance due from the Tri-Municipal Sewer Commission
is not reported in the funds. (131,771)
Change in net employee retirement system liability,related deferred outflows,
and related deferred inflows is not reported in the funds. (115,735)
Some expenses reported in the statement of activities,such as retainage payable,
compensated absences,landfill liabilities,and postemployment 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 2016. (493,900)
Net change in net position of governmental activities $ 1,563,904
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.
2016. These interfund balances have been eliminated as part of the aggregation of fund balances. Such balances ar
through the use of a pooled cash disbursement account and the temporary funding of capital projects.
TRANSFERS TRANSFERS
FUND IN our
Highway $ - $ 149,360
Capital Projects 149,360 -
TOTALS $ 149,360 $ 149,360
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) I
DECEMBER 31,2016
I
NOTE C-Interfund Receivables and Payables and Transfers(Continued)
i t
AMOUNT AMOUNT
FUND RECEIVABLE PAYABLE ri
General-Town-Wide $ 8,134 $ 6,553 '
General-Part-Town - 10,890
Highway - 325,512
Water - 562,443 €
Sewer 17,687 25,262
Capital Projects 904,839 -
TOTALS $ 930,660 $ 930,660
NOTE D—Cavital Assets .
The following is a summary of changes and adjustments in capital assets, for the year ended December 31,2016:
BALANCE BALANCE
DECEMBER 31, DECEMBER 31,
2015 ADDITIONS DISPOSALS) 2016
Land $ 8,162,217 $ - $ - $ 8,162,217
Buildings 8,343,664 7,445 - 8,351,109
hnprovements Other Than Buildings 1,746,311 319,168 - 2,065,479
Roads 9,823,253 819,600 (419,458) 10,223,395
Infrastructure 152,503,851 - - 152,503,851 I'
Machinery and Equipment 6,267,532 709,139 (279,111) 6,697,560
Construction in Progress 7,860,962 662,993 (4,754) 8,519,201
Total 194,707,790 2,518,345 (703,323) 196,522,812
Less accumulated depreciation
Buildings 3,798,602 228,884 4,027,486 i]]�
Improvements Other Than Buildings 777,121 73,032 - 850,153 ;11
Roads 7,113,749 346,818 (419,458) 7,041,109 j
Infrastructure 112,606,529 1,520,345 - 114,126,874
;r
Machinery and Equipment 5,056,173 363,684 (279,111) 5,140,746
Total accumulated depreciation 129,352,174 2,532,763 698,569 131,186,368
Governmental activities capital
assets,net $ 65,355,616 $ 14,418 ) $$ 6� 1'
*Depreciation was charged to governmental activities as follows: ','
General government support $ 199,959
Public safety 78,332
Transportation 473,519
Culture and recreation 250,078
�j
Home and corrrnunity services 1,530,875
Total depreciation expense $ 2,532,763 '
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE E—Pension Plans
1. Plan Description
The Town of Wappinger participates in the New York State and Local Employees'Retirement System(ERS),ti
New York State and the Public Employees'Group Life Insurance Plan(Systems). ERS is a cost-sharing multiply
employer retirement system. The Systems provide retirement benefits as well as death and disability benefit
Obligations of employers and employees to contribute and benefits to employees are governed by the New Yoi
State Retirement and Social Security Law(NYSRSSL).
As set forth in the NYSRSSL,the Comptroller of the State of New York(Comptroller)serves as sole trustee an
administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations for tl
administration and transaction of the business of the Systems and for the custody and control of their funds. T1.
Systems issue a publicly available financial report that includes financial statements and required supplemental
information. That report may be obtained by writing to the New York State and Local Retirement Systems, 11
State Street,Albany,New York 12244.
2. Fundine Policy
The Systems are noncontributory except for employees who joined the New York State and Local Employee
Retirement System after July 27, 1976,who contribute 3%of their salary.Under the authority of the NYSRSS I
the Comptroller shall certify annually the rates of participating employers expressed as proportions of payroll c
members, which shall be used in computing the contributions required to be made by employers to the pensio
accumulation fund.
The Town of Wappinger is required to contribute to the Systems at an actuarially determined rate. The require
contributions for the current year and two preceding years were:
2016 2015 2014
$ 504,378 $ 497,076 S 496,222
The Town's contributions made to the Systems were equal to or in excess of 100 percent of the contribution
required for each year.
3. Pension Liabilities.Pension Ex ense and Deferred Outflows of Resources and Deferred Inflows 0f
Resources Related to Pensions
At December 31,2016,the Town reported a liability of$1,473,969 for its proportionate share of the net pensio;
liability. This amount is recorded as a long-term liability due to the NYS Retirement System. The net pensioi
liability was measured as of March 31, 2016, and the total pension liability used to calculate the net pensioi
liability was determined by an actuarial valuation as of that date. The Town's proportion of the net pensiol
liability was based on a projection of the Town's long-term share of contributions to the pension plan relative b
the projected contributions of all participating members,actuarially determined.
At March 31,2016,the Town's proportion was 0.0091834 percent of the Employers'Retirement System liability
which was an increase of 0.0002682 from its proportion measured as of March 31,2015.
31
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TOWN OF WAPPINGER,NEW YORK I
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE E—Pension Plans(Continued)
3. Pension Liabilities,Pension Exaense,and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions(Continued)
For the year ended December 31, 2016, the Town recognized pension expense of$561,200. At December 31,
2016, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual experience $ 7,448 $ 174,714
Changes of assumptions 393,063 -
Net difference between projected and actual investment earnings on 874,439
pension plan investments -
Changes in proportion and differences between employer
126,348
contributions and proportionate share of contributions -
Employer contributions subsequent to the measurement date 427,182 - ;
Total $ 1,828,480 $ 174,714
f!
fi
$427,182 reported as deferred outflows of resources related to pensions resulting from the Town's contributions
subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31,2017.Other amounts reported as deferred outflows of resources and deferred inflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended December 31:
2017 $313,678
2018 $313,678
2019 $ 313,678
2020 $285,551
Actuarial Assumptions
The total pension liability at March 31,2016,was determined by using an actuarial valuation as of April 1,2015,
with update procedures used to roll forward-the total pension liability to March 31,2016.The actuarial valuation
used the following actuarial assumptions:
Inflation 2.5%
Salary increases -ERS 3.8%
Interest rate of return 7A%
Cost of living adjustments 1.3%
Annuitant mortality rates are based on April 1,2010—March 31,2015 System experience with adjustments for
mortality improvements based on the Society of Actuaries' Scale MP-2014.
The actuarial assumptions used in the April 1,2015 valuation are based on the results of an actuarial experience
study for the period April 1,2010—March 31,2015.
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE E—Pension Plans(Continued)
3. Pension Liabilities,Pension Expense,and Deferred Outflows of Resources and Deferred Inflows o!
Resources Related to Pensions(Continued)
Actuarial Assum tions Continued
The long term expected rate of return on pension plan investments was determined using a building block met
in which best estimate ranges of expected future real rates of return(expected returns net of investment exp
and inflation) are developed for each major asset class. These ranges are combined to produce the long t
expected rate of return by weighting the expected future real rates of return of the target asset allocation percen!
and by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the target asset alloca
as of March 31,2016 are summarized below:
Lown Terin
Expected Real
Asset Class hate of Return
Domestic equity 7.301/o
International equity 8.55%
Private equity 11.000/0
Real estate 8.25%
Absolute return strategies 6,75%
Opportunistic portfolio 8.601/6
Real assets 8.65%
Bonds and mortgages 4.001/6
Cash 2.25%
Inflation-indexed bonds 4.00%
Discount Rate
The discount rate used to calculate the total pension liability was 7.01/o. The projection of cash flows use
determine the discount rate assumes that contributions from plan members will be made at the current contribi
rates and that contributions from employers will be made at statutorily required rates, actuarially. Based 1
these assumptions, the System's fiduciary net position was projected to be available to make all projected fi
benefit payments of current plan members. Therefore the long term expected rate of return on pension
investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivi of the Pro ortionate Share of the Net Pension Liabili to the Discount Rate Assum tion
The following presents the Town's proportionate share of the net pension liability calculated using the disc
rate of 7.0 percent,as well as what the Town's proportionate share of the net pension liability would be if it'
calculated using a discount rate that is 1-percentage-point lower(6.0 percent) or 1-percentage-point higher
percent)than the current rate:
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TOWN OF WAPPINGER,NEW YORK
l NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE E—Pension Plans Continued
3. Pension Liabilities,Pension Exoense.and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions Continued
f
Sensitivity of the Proportionate Share of the Net Pension Liabili1y to the Discount Rate Assumption(Continued)
1% Current 1%
Decrease Assumption Increase
6.0%) _ (7.0%) 8.0%
Town's proportionate share of the $ 3,323,693 $ 1,473,969 $ (88,969)
net FRS pension liability(asset) .i
Pension plan fiduciga net Nsit
The components of the current-year net pension liability of all employers as of March 31,2016,were as
follows:
Dollars in Thousands
Employees'
Retirement
System
' I
FnVloyers'total pension liability $ 172,303,544
Plan net position 156,253,265
Finployers'net pension liability $ 16,050,279
Ratio of plan net position to the 90.7%
employers'total pension liability
NOTE F—Other Post-Employment Benefits
I;
1. Plan Description
The cost of post-employment healthcare benefits,like the cost 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
Reporting by Employers for Post-employment 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. 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.
34
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE F—Other Post-Employment Benefits(Continued)
1. Plan Description Con
The Town provides continuation of medical insurance coverage to employees that retire under the New Ya
Retirement Systems at the same time they end their service to the Town. This plan is a single employer plt
established by authority of the Town Board and administered by the Town. Currently,there are approximate
15 retirees or bcnef-iciaries receiving post-employment benefits. Based on the current employment policy, t
retiree and his or her beneficiaries receive coverage for the life of the retiree based on the retiree's years of servi
at retirement. A copy of the report on these benefits can be requested at Town Hall. A summary of benefits is
follows:
%Paid by Town
Under 65 Over 65
Years of Service
10-14 Years 35% 35%
15-19 Years 50010 50%
20-24 Years 60% 60%
25 or More Years 70% 70%
The Town provides funding on the pay-as-you-go method by payment of current insurance premiums. Current
New York's General Municipal Laws do not permit funding of the OPEB obligation,therefore there are no pl
assets.
2. Annual Other Postenilployfflent Benefit Cost
The Town's change in net OPEB obligation amounted to$581,073 for the year ended December 31, 2016. 1
Annual Required Contribution(ARC)is an amount actuarially determined in accordance with the parameters
GASB Statement 45 less the amount that the Town paid in the current year for retirees. The ARC represent
level of funding that,if paid on an ongoing basis,is projected to cover normal costs plus a past service cost e2
year and amortize any unfunded actuarial liabilities over a period of 30 years.
l
35
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) j
DECEMBER 31,2016
11
it
NOTE F—Other Post-Employment Benefits(Continued)
2. Annual Oth r Postemployment Benefit Cost(Continucift
I�
Total Actuarial Accrued Liability $ 8,551,107
Ai
Past Service Costs $ 385,052
Nomial Costs 378,378
Annual Required Contribution(ARC) $ 763,430
Net OPEB Obligation-beginning of the year $ 3,608,676
Annual Required Contribution(ARC) 763,430
Interest on Net OPEB Obligation 90,221
Adjustment to Annual Required Contribution (164,031) 'I
Annual OPEB cost 689,620 I,
Age Adjusted Contributions Made* (108,547)
Increase in Net OPEB Obligation 581,073
Net OPEB Obligation-end of the year S 4,189 749
Percent of annual OPEB cost contributed 15.7%
*This contribution is the pay-as-you-go amount,as an actual plan
has not been established,see Funding Policy.
%of Annual Net OPEB
Year Annual OPEB Cost Obligation
Ended OPEB Cost Contributed at Fnd of Year
12/31/2016 $ 689,620 15.70% $ 4,189,749
12/31/2015 $ 534,534 14.50% $ 3,608,676
12/31/2014 $ 523,473 13.70% $ 3,151,793 j
I
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about
the probability of occurrence of events far into the future. Examples include assumptions about future
employment, mortality, and the healthcare cost trend. Amounts determined regarding the funding status of the
plan and the annual expectation and new estimates are made about the future. The schedule of funding progress,
presented as required supplementary information following the notes to the financial statements,presents multi-
year trend information about whether the actuarial value for plan assets is increasing or decreasing over time "I
relative to the actuarial accrued liabilities for benefits.
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE F—Other Post-Employment Benefits(Continued)
3. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan(the plan as undo
by the employer and the plan members) and include the types of benefits provided at the time of each val
and the historical pattern of sharing benefit costs between the employer and plan members to that point
actuarial methods and assumptions used include techniques that are designed to reduce the effects of shot
volatility in actuarial accrued liabilities and the actuarial value of assets,consistent with the long-term persf
of the calculations. In the December 31,2016,actuarial valuation,the liabilities were computed using the
age actuarial cost method and level percentage of payroll amortization. The actuarial assumptions utilized
baseline discount rate.
The valuation assumes the following rates of increase in health care costs:
Fiscal Prescription
Year Medical Drug Dental Vision
Year 1 9.000/0 9.000/0 4.00% 3.00%
Year 2 8.000/0 8.00% 3.500/a 3.001/o
Year 3 7.00% 7.00% 3.00% 3.000/a
Year 4 6.00% 6.00% 3.00% 3.000/0
Year 5 5.800/0 5.800/0 3.00% 3.00%
Year 6 5.60% 5.60% 3.00% 3.000/0
Year 7 5.60% 5.60% 3.00% 3.00%
Year 8 5.500/0 5.500/0 3.00% 3.00%
Year 9 5.50% 5.50% 3.00% 3.00%
Year 10+ 4.70% 4.70% 3.000/0 3.00%
NOTE G-Bond Anticipation Notes Payable
Bond anticipation notes can be used for any purpose for which bonds are authorized,and are generally accour
in the capital projects find,since maturities cannot exceed one year. Local finance law allows the notes to be re
up to five years for capital purposes and up to the period of probable usefulness for assessable improvements,pi
that stipulated annual reductions of principal are made.
The Town issued$3,438,000 in bond anticipation notes dated March 24, 2016, and maturing on March 24,i
0.95% interest. The notes were issued for the purpose of renewing outstanding notes for various improv,
construction projects,and equipment purchases.
37
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE G-Bond Anticipation Notes Payable(Continued)
The bond anticipation notes outstanding as of December 31,2016,are as follows:
AMOUNT J'
OUTSTANDING
ORIGINAL ORIGINAL AT
ISSUE MATURITY E4TERFST AMOUNT DDCENBER31,
PURPOSE DATE DATE RATE OF ISSUE 2016
United Wappinger Water District Improvements 09/26/13 03/25/16 1.00% $ 500,000 $ -
United Wappinger Sewer DistrictImprovements 09/26/13 03/24/17 0.95% 580,000 570,000 L '
Wildwood Dr and Granger A Improvements 09/26/13 03/25/16 1.00% 500,000 -
Meadowoad&Route 9 Loop-Ft7tration Systems(1) 06/18/14 03/25/16 1.000/0 700,000 -
Resurfacing Various Town(toads(1) 06/18/14 03/25/16 1.000/0 520,000
Highway Equipment 06/18/14 03/25/16 L000/0 230,000
Meadowood&Route 9 hoop-Filtration Systems(2) 11/19/14 03/25/16 1.000/0 2,421,000 -
Water Meter Replacement 09/22/15 03/24/17 0.95% 1,793,000 1,793,000
Tri-Municipal SewerCornntission 09/22/15 03/24/17 0.95% 945,000 570,000
Resurfacing Various Town(toads(2) 09/22/15 03/25/16 0.57% 650,000 -
Town Hall Roof Replacement 09/22/15 03/25/16 0.57% 400,610 -
Maintenance Equipment 03/24/16 03/24/17 0.95% 505,000 505,000 j
TOTAL BOND ANTICIPATION NOTES $ 9,744,610 $ 3,438,000
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Changes in bond anticipation notes payable as of December 31,2016,are as follows:
BALANCE BALANCE
DECEMBER 31, (YEW DECEMBER 31,
PURPOSE 2015 ISSUES PAYDOWNS 2016 ;ill
United Wappinger Water District]hiprovements $ 495,000 $ $ (495,000) $ -
United Wappinger Sewer District Improvements 575,000 - (51000) 570,000
Wildwood Dr and Changer A Improvements 495,000 (495,000) -
Meadowood&Route 9 Loop-Filtration Systems(1) 700,000 (700,000) _
Resurfacing Various Town Roads(1) 520,000 (520,000.00) -
Highway Equiptnent 230,000 (230,000.00) -
Meadowood&Route 9 Loop-Filtration Systems(2) 2,421,000 - (2,421,000) -
Water Meter Replacement 1,793,000 - 1,793,000
Tri-Municipal Sewer Cotmtission 945,000 (375,000) 570,000
Resurfacing Various Town Roads(2) 650,000 (650,000) -
Town Hall Roof Replacement 400,610 (400,610) -
Maintenance Equipment - 505,000 505,000
TOTALS S 9,224,610 $ 5�05� 000 $(6,291,610) $ 3,438,000
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38
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE H-Lone-Term Liabilities
1. Serial Bonds
Serial bonds may be issued for any object or purpose for which a period of probable usefulness has
established. The serial bonds payable,as of December 31,2016,are as follows:
AMOUN
OUI'STANT
ORIGINAL FINAL ORIGINAL AT
ISSUE MATURITY INTEREST AMOUNT DECEMBFI
PURPOSE DATE DATE RATE OFISSUE 2016 ;
Sewer-Tri-Municipal 03/14/02 04/15/21 1.21%-4.98% S 9,836,556 S 2,875
Water-Fleetwood 07/30/98 t0115/18 3.70%-5.15% 510,000 70
Sewer-Home&Conmunity Services 06102/11 04/01/21 2.75%-3.50% 316,000 175
Greystone Property Purchase 06102/1 t 10/01/20 2.00%-3.50% 2,085,000 59C
12,747,556 3,710
Highway-Transportation 1,184,640 966
General-General Government Support 50,000 40
General-Culture&Recreation 163,360 133
03/27/14 03/15/24 1.50.2.75% 1,398,000 1,140
General-General Government Support 662,400
Water/Sewer-Home&Cournunity Services 8,674,300
Highway-Transportation 2,243,300
08/01/07 08/01/27 4.00%-5,00% 11,580,000
General-Culture&Recreation 1,070,000 264
Highway-Transportation 1,074,000 264
General-Home&Cornrunity Services 1,218,000 306
04/02/09 04/01/22 2.00%-5.00% 3,362,000 845
Water-Home&ComnunityServices 360,000 260.
Sewer-Home&Conxnunity Services 576,000 416
General-Culture&Recreation/Lighting 504,000 364
03/05/13 03/01/23 2.00°/o-2.25% 1,440,000 1,040
General General Government Support 400,610 40Q
Highway-Transportation 1,365,000 1,365.
Water-Home&Conumnity Services 3,585,000 3,585.
Sewer-Home&Comrnnity Services 490,000 490
03/24/16 03/15/36 2.25-3.00% 5,840,610 5,840
General-General Government Support 1,106,995 1,100;
Highway-Transportation 1,742,500 1,732;
Water-Home&Corrun unity Services 5,507,077 5,474,
Sewer-Home&Conrminity Services 163,428 162,
04/26/16 04/01/29 1.00-5.00% 8,520,000 8,470;
TOTALS $44,888,166 $ 21,045,1
39
_ f
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016 ji'
NOTE H-Lan -Term Liabilities Continued J
2. Chanees
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i
The changes in the Towds indebtedness during the year ended December 31,2016,are summarized as follows:
BALANCE BALANCE AMOUNTS
DECEMBER31, DECKMEI131, DUEWMBN
2015 INCREASE WR MACE) 2016 ONEYFAR
Judgement&Claims
Note I.1. $ 80,000 $ $ $ 80,000
Compensated Absences !j
Note A.5.F. 317,854 (44,701) 273,153
Landfill Remediation
Note J 155,745 (6,967) 148,778 7,336 I'
SerialBonds
Note H.1. 17,5W,000 14,360,610 (10,815,000) 21,045,610 1,890,610 A
Other Postemployment Benefits j f.
Note F 3,608,676 581,073 - 4,189,749
Net Employee Retirement System
Note 301,178 1,172,791 - 1,473,969 -
TOTALS $ 21,963,453 $ 16,114,474 $ (10,866,668) $ 27,211,259 $ 1,897,946 i
3. Debt Service Reauirements
The annual requirements to amortize bonded debt,as of December 31,2016,are as follows:
YEAR ENDING
DECFMBER 31 PRINCIPAL INTEREST TOTAL
2017 $ 1,890,610 $ 771,155 $ 2,661,765
2018 2,020,000 631,185 2,651,185
2019 2,050,000 557,650 2,607,650
2020 2,115,000 480,638 2,595,638
2021 2,025 000 402,120 2,427,120
2022-2026 5,450,000 1,326,244 6,776,244 j
2027-2031 3,700,000 496,606 4,196,606
2032-2036 •1,795,000 137,475 1,932,475
TOTALS $ 21,045,610 $ 4,803,073 $25,848,683
4. Bond Refunding
In April 2016, the Town issued$8,520,000 inublic improvement refunding serial bonds with interest rates of
P P g
1.00-5.00%.The proceeds were used to refund a portion of the Town's 2007 and 2009 public improvement bonds
and pay the costs of issuance of the 2016 refunding bonds. The net proceeds of the refunding,$9,605,957, after
Ii;'
payment of 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. The cash flow required to service the old debt was $12,020,156, and the cash
flow required to service the new debt is$10,925,640,resulting in a reduction of$1,094,516.The economic gain
(net present value of the savings resulting from the refunding)amounted to$941,516.Escrow funds were used to
pay down refunded debt,resulting in an outstanding debt balance of$9,065,000 with remaining escrow funds of
$9,456,593 as of December 31,2016.The refunded bonds will be called in 2017 and 2019.
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE I-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 c
and lawsuits, as determined by the town attorney, should not result in material unfavorable settlements.
Town has recorded an estimated liability amounting to $80,000 as judgment and claims,representing pose
future settlements on tax certiorari cases.
2. Tri-Municipal Sew romrnissioo
The Town is a customer of the Tri-Municipal Sewer Commission which operates the Tri-Municipal S
Treatment Plant. The plant is managed by the Tri-Municipal Sewer Commission,
which is made u
the village of Wappingers Falls.The Town,therefore,do4
representatives of the Town of Poughkeepsie and
have ownership rights,nor does it have voting rights on the Commission's governing board. However,the I
has committed to share in capital costs for plant improvements as determined by the Commission.
Part of the Commission's residual fund balance is allocated to the Town and is returnable to the Town s
discretion of the Commission's board. The Town's residual fund balance receivable was$456,182 at D=
31,2016.
3. United anuin er W ter Dish
W
i
In 2012,the Town entered into an agreement with the City of New York for the construction of a water s
and distribution system. The first phase of the project is for the extension of the water main from the L
Wappinger Water District to the NYC Shaft 6 site on River Road. This phase was completed and placed in s
during 2014. The second phase of the project is for a water main extension of the NYC DEP parcel to the CI
Hamlet area. This phase is expected to be completed in 2017. The City has agreed to pay for all eligible
not to exceed$11,000,000, and the Town is responsible for all costs over$11,000,000. The coustructioi
incurred under this project totaled $8,546,303 as of December 31, 2016. The Town is expected to
approximately 160,000 gallons of water per day to NYC DEP for approximately$180,000.
4. Authorized,Debt
As of December 31,2016,the Town has authorized,but not issued,the following new debt:
Authorization Authorized Un-issued
PppSE, Date Amount Amount
rats
Of�J
23108 $
4,000,000 $2,790,000
ath Faartm rovema
Camw hnp
419,000
United Wappinger Water District04/22/13
__4,040,000�
TOTALS $ 8,040,000 $$3,209,000
41
TOWN OF WAPPINGER,NEW YORK i!
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
1;
NOTE J—Municival Landfills
i
L Castle Point L na dfdl
' i
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$53,076.The Town has recorded the long term liability of$48,653 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 monitoring costs during 2016. The future costs may be higher due to inflation,changes in technology
or subsequent changes in regulations.
2. Pv hk i - in er -L G ni!c Joint L n fill
The Town has shared in the monitoring costs of a closed landfill,the Poughkeepsie-Wappinger-LaGrange 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 Wa €
g , ppinger,New York. All costs associated
with monitoring are recognized as incurred. The Town's share of monitoring costs,for the year ended December
f�
31,2016,amounted to$2,544.
The following is a summary of unaudited financial information at December 31,2016, 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:
Total Assets $ 27,252 II
Total Liabilities $ -
Total Fund Balance $ 27,252
Total Revenues $ 9
Total Expenditures $ 12,933
I�
During 2002,violations were documented of the landfill and in 2003 an Order of Consent was issued 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 borne proportionately by each municipality: the Town of Wappinger's share is 14.1728%or$1,417,280. The
Town issued$1,425,368 in bond anticipation notes to finance its share. The notes were permanently financed as
part of the 2009 public improvement serial bonds issuance and a portion of the bonds was refunded in 2016 as
described in Note H.4. The outstanding debt as of December 31,2016 amounted to$648,510. Remaining post
closure and monitoring costs, which commenced in 2007 and continue for 30 years, are estimated to amount to ff
$675,250 as of December 31,2016,with the Town's share being$95,789.
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42
IIS,
E
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2016
NOTE K-Leases
The Town is committed under various leases for office equipment and communication equipment. For accou
purposes,these leases can be considered either operating or capital leases. Operating lease expenditures amoi
to$54,588,and there were no capital lease expenditures for the year ended December 31,2016.
At December 31, 2016, the approximate annual lease commitments, subject to appropriation of finds, we
follows:
YEAR ENDING OPERATING
DECEMBER 31. LEASES
2017 $ 31,883
2018 11,247
2019 6,962
2020 3,603
Total minimum lease payments $ 53,695
i�
NOTE L--Rental Income
is
The Town has agreements with various organizations for the rental of the Town's emergency services build;
for the rental of land and antenna space. Rental income totaled $147,163 for the year ended December 31
Minimum future rental income is as follows:
YFAR ENDING RENTAL
DbECFNMER 31 INCOME
2017 $ 65,645
2018 39,571
2019 31,410
2020 5,261
Total nonitminrental income $ 141,887
NOTE M—Tax Abatement
The Town has one real property tax abatement that provides for a 30% exemption for 2016 based on the
payment in lieu of tax agreement. The purpose of the abatement was to cover the construction of a new con
r :
retail store. Details related to the abatement for 2016 are as shown below:
Taxable
Start Assessed Tal[ Tax PILOT Taxes
Date Agreement Value Rate Value Recei`ed Abated
12/1/2010 Adaam -Wappinger IT.0 $7,000,000 4.30 $30,093 $21,065 $9,028
43
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TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED) j
DECEMBER 31,2016 it
NOTE N—Deferred Inflows and Deferred Outflows of Resources
The following schedule details the deferred inflows and deferred outflows of resources as of December 31,2016.
DEFERRED D)HFERRFD $I
DESCRIPTION 0LTr .oWS INFLOWS
Deferred Loss on Refunding $ 540,957 $ -
Deferred Bond Premium - 1,197,380
Participant Share Due FromTri-MunicipalSewer Commission 456,182 -
NYS Employee Retirement System 1,828,480 174,714
Other - 18,896
TOTALS $ 2,825,619 $ 1,390,990
NOTE O—Subsequent Events
In March 2017,the Town authorized the issuance of$280,000 in serial bonds to pay the cost of improvements to the
I
Mid Point Park Sewer District.
On March 23,2017,the Town issued public improvement serial bonds totaling$3,370,000 at 2.25-3.25%interest and
maturing on March 15,2037. The bonds,along with$68,000 in available funds,will be used to redeem$3,438,000
outstanding bond anticipation notes for certain projects and equipment.
NOTE P—Prior Period Adjustment
In 2016,a sales tax growth payment was received relating to 2015 activity. A prior period adjustment of$155,402
was recorded to properly state revenue and fund balance at December 31,2016.
NOTE O—New Reporting Standards
GASB issued Statement 72, Fair Value Measurement and Application, which addresses accounting and financial
reporting issues related to fair value measurements.The definition of fair value is the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants and the measurement
date.This Statement provides guidance for determining a fair value measurement for financial reporting purposes and
for applying fair value to certain investments and disclosures related to all fair value measurements.GASB Statement
72 is effective for fiscal year 2016.The Town determined that the new standard did not have a significant impact on
its financial reporting.
GASB has issued Statement 73,Accounting and Financial Reporting for Pension and Related Assets that are not
within the Scope of GASB Statement 68,and Amendments to Certain Provisions of GASB Statements 67 and 68,which
improves the usefulness of information about pensions included in the general purpose external financial reports of
state and local government for making decisions and assessing accountability.This Statement also amends Statement
67,Financial Reporting for Pension Plans.GASB Statement 73 is effective for fiscal year 2016.The Town determined
that the new standard did not have a significant impact on its financial reporting,
j
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44
i
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31,2416
NOTE O--New Reporting Standards(Continued)
GASB has issued Statement 74,Financial Reporting for Postemployment Benefit Plans Other Than Pension
which improves the usefulness of information about postcmployment benefits other than pensions includcc
general purpose external financial reports of state and local governments OPEB plans for making decisic
assessing accountability.The Town determined that the new standard did not have a significant impact on its fi
reporting.
GASB has issued Statement 75, Accounting and Financial Reporting for Postemployment Benefits Othe
Pensions, improves accounting and financial reporting by state and local governments for postemployment 1
other than pensions. It also improves the information provided by state and local governmental employer,
support for OPEB that is provided by other entities. The Town is required to implement this standard for ti
ending December 31, 2018. The implementation of this standard is expected to have a substantive effect)
Town's net position.
GASB has issued Statement 77, Tax Abatement Disclosures. This Statement requires governments to disclosi
notes certain information related to tax abatement agreements.GASB Statement 77 is effective for fiscal yea
The Town has implemented Statement 77 as required.
In March 2016,GASB issued Statement 82,Pension Issues—An Amendment of GASB Statements No. 67,No.
No. 73. This Statement addresses issues regarding (1) the presentation of payroll-related measures in r+
supplementary information,(2)the selection of assumptions and the treatment of deviations from the guidana
Actuarial Standard of Practice for financial reporting purposes, and (3) the classification of payments m
employers to satisfy employee (plan member) contribution requirements. The Town is required to implemi
standard for the year ending December 31, 2017. The implementation of this standard is not expected to:
substantive effect on the Town's net position.
In November 2016, GASB issued Statement No. 83, Certain Asset Retirement Obligations. GASB 83 ad
accounting and financial reporting for certain asset retirement obligations(AROs).An ARO is a legally enfo
liability associated with the retirement of a tangible capital asset.A government that has legal obligations to t
future asset retirement activities related to its tangible capital assets should recognize a liability based on the gi
in this Statement. The requirements of GASB 83 are effective for reporting periods beginning after June 11
The Town has not evaluated the effect of GASB 83 on its financial statements.
In January of 2017,'GASB issued Statement No. 84, Fiduciary Activities. The objective of Statement No. I
improve guidance regarding the identification of fiduciary activities for accounting and financial reporting pi
and how those activities should be reported. Statement No. 84 establishes criteria for identifying fiduciary ac
of all state and local governments. The focus of the criteria generally is on (1) whether a government is con
the assets of the fiduciary activity and(2)the beneficiaries with whom a fiduciary relationship exists. Separate
are included to identify fiduciary component units and postemployment benefit arrangements that are fil
activities. The Town has not evaluated the effect of GASB 84 on its financial statements.
In March 2017, GASB issued Statement 85, Omnibus 2017. This Statement addresses a variety of topics in,
issues related to blending component units, goodwill, fair value measurement and application, and postemp6
benefits(pensions and other postemployment benefits[OPEB j). The Town is required to implement this stanc
the year ending December 31,2018, The implementation of this standard is not expected to have a substantiv,
on the Town's net position.
GASB has also issued Statements 76, 78-81, and 86,none of which are expected to have any substantive efl
the Town's net position.
45
4
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REQUIRED SUPPLEMENTAL INFORMATION
i.
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V'
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE
DECEMBER 31,2016
GENERAL FUND-TOWN-WIDE
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
' REVENUES
Real property taxes $ 2,624,153 $ 2,795,153 $2,795,155 $ 2
Real property tax items 70,000 70,000 99,400 29,400
' Non property tax items - _ - _
Departmental income 148,250 148,250 140,474 (7,776)
Use of money and property 172,600 172,600 150,029 (22,571)
Licenses and permits 5,350 5,350 4,808 (542)
Fines and forfeitures 275,450 275,450 373,002 97,552
Sale of property and compensation for loss - - 36,963 36,963
Miscellaneous local sources - - 20,419 20,419
' State aid 693,900 693,900 1,023,771 329,871
Total revenues 3,989,703 4,160,703 4,644,021 483,318
Appropriation of prior year's fund balance - - - -
' Total revenues and appropriation of
prior year's fund balance 3,989,703 4,160,703 4,644,021 483,318
EXPENDITURES AND ENCUMBRANCES
' General government support 1,748,034 1,831,034 1,774,956 56,078
Public safety 37,032 37,032 29,625 7,407
Health 3,500 3,500 12,259 (8,759)
' Transportation 185,515 210,515 168,289 42,226
Economic assistance&opportunity 650 650 650
Culture and recreation 586,119 604,119 563,703 40,416
Home and community service 241,250 246,250 204,238 42,012
Employee benefits 786,496 801,496 678,806 122,690
Debt service 401,107 401,107 401,353 (246)
Total expenditures and encumbrances 3,989,703 4,135,703 3,833,879 301,824
Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under)
expenditures and encumbrances 25,000 810,142 785,142
Other financing sources(uses):
Operating transfers in _ - -
' Operating transfers out
Total other financing sources
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources
over(under)expenditures nod encumbrances $ - $ 25,000 $ 810,142 $ 785,142
Explanation of differences between budgetary and GAAP basis
Excess of revenues over/(under)expenditures-budgetary basis $ 810,142
i
Expenditures do not include GASB 34 adjustments (279,113)
Excess of revenues over/(under)expenditures-GAAP basis $ 531,029
I
I
See Notes to the Financial Statements
7
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31 2016
GENERAL FUND-PART-TOWN
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)!
REVENUES
Real property taxes $ $ - $
Real property tax items -
Non property tax items 1,028,544 1,072,544 1,429,247 356,703
Departmental income 119,000 119,000 172,958 53,958
Use of money and property 500 500 1,741 1,241
Licenses and permits 228,000 228,000 352,997 124,997
Fines and forfeitures - - -
Sale of property and compensation for loss -
Miscellaneous local sources 6,137 6,137
State aid
j Total revenues 1,376,044 1,420,044 1,963,080 543,036
Appropriation of prior year's fund balance - -
Tolal revenues and appropriation of
b
prior year's fund balance 1,376,044 1,420,044 1,963,080 543,036
EXPENDITURES AND ENCUMBRANCES
General government support 195,392 220,392 180,508 39,884
Public safety 499,162 514,162 522,OIO (7,848
Health - - -
Transportation 36,000 40,000 36,965 3,035
Economic assistance&opportunity 5,000 5,000 5,866 (866
it Culture and recreation 94,669 94,669 70,392 24,277
Home and community service 176,293 176,293 159,603 16,690
Employee benefits 246,396 246,396 227,850 18,546
Debt service 123,132 123,132 123,689 (557
Total expenditures and encumbrances 1,376,044 1,420,044 1,326,883 93,161
Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under)
expenditures and encumbrances 636,197 636,197
Other financing sources(uses):
Operating transfers in
Operating transfers out
Total other financing sources
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources
j' over(under)expenditures and encumbrances $ $ $ 636,197 $ 636,197
1 See Notes to the Financial Statements
47
i
3.
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2016
HIGHWAY FUND
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE) i
REVENUES
�I`3
Real property taxes $ 3,125,712 $3,269,283 $3,269,283 $ f
Ileal property tax items - - -
Non property tax items 367,456 323,456 323,456 j
Departmental income - - - k
Use of money and property 500 500 1,481 981
Licenses and permits - - 2,750 2,750
Fines and forfeitures - -
Sale of property and compensation for loss 17,000 17,000
Miscellaneous local sources - - 18,068 18,068
State aid 220,000 220,000 241,101 21,101
Total revenues 3,713,668 3,813,239 3,873,139 59,900
Appropriation of prior year's fund balance - -
Total revenues and appropriation of
prior year's fund balance 3,713,668 3,813,239 3,873,139 59,900
EXPENDITURES AND ENCUMBRANCES j
General government support 168,803 158,803 114,962 43,841
Public safety - - - -
Health - - - -
Transportation 2,205,234 2,190,234 1,999,124 191,110
Economic assistance&opportunity
Culture and recreation
Home and community service
I
Employee benefits 888,988 888,988 815,026 73,962
Debt service 450,643 500,643 450,389 50,254
Total expenditures and encumbrances 3,713,668 3,738,668 3,379,501 359,167
Excess(deficiency)of revenues and appropriation `I
of prior year's fund balance over(under)
expenditures and encumbrances 74,571 493,638 419,067
�h
I�
Other financing sources(uses)-
Operating transfers in _
Operating transfers out (149,360) (149,360)
Total other financing sources (149,360) (149,360) I:
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources
over(under)expenditures and encumbrances $ $ 74,571 $ 3278 $ 269,707
�.,v. 44, II
Explanation of differences between budgetary and GAAP basis
Excess of revenues over/(under)cxpenditures-budgetary basis $ 344,278
Expenditures do not include GASB 34 adjustments (41,638)
Excess of revenues over/(under)expenditures-GAAP basis $ 302,640
III'.
See Notes to the Financial Statements
48
I,I
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2016
WATER FUND
VARIANCE
ORIGINAL FINAL FAVORABLE:
BUDGET BUDGET ACTUAL (UNFAVORABL
REVENUES
Real property taxes $ 795,036 $ 795,036 $ 790,036 $ (5,0
Real property tax items - - -
Non property tax items - -
Departmental income 1,326,775 1,326,775 1,491,739 164,9'
Use of money and property 987 987 2,449 l,d
Licenses and permits 42,300 42,3!
Fines and forfeitures -
Sale of property and compensation for loss 13,687 13,6
Miscellaneous local sources 106 1.
� I
! State aid -
I Total revenues 2,122,798 2,122,798 2,340,317 217,5
Appropriation of prior year's fund balance
Total revenues and appropriation of
prior year's fund balance 2,122,798 2,122,798 2,340,317 217,5
i
I EXPENDITURES AND ENCUMBRANCES
General government support 130,430 130,430 115,977 14,4
Public safety
Health
Transportation
Economic assistance&opportunity
Culture and recreation - -
G Home and community service 1,245,045 1,245,045 1,215,005 30,13
Employee benefits 6,550 6,550 4,023 2,5
Debt service 740,773 740,773 738,162 2,i
Total expenditures and encumbrances 2,122,798 2,122,798 2,073,167 49,E
Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under)
1
expenditures and encumbrances 267,150 267,1
i
Other financing sources(uses):
Operating transfers in
Operating transfers out
Total other financing sources
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources
over(under)expenditures and encumbrances $ $ $ 267,150 $ 267,1
f '
i
See Notes to the Financial Statements
49
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f EXHIBIT I
I TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2016
SEWER FUND
VARIANCE
ORIGINAL FINAL FAVORABLE l
BUDGET BUDGET ACTUAL (UNFAVORABLE)
REVENUES k
Real property taxes $ 793,164 $ 793,164 $ 798,164 $ 5,000
Real property tax items
Non property tax items
IDepartmental income 2,118,802 2,118,802 2,201,683 82,881
Use of money and property 67,059 67,059 119,277 52,218
Licenses and permits - 38,400 38,400
I Fines and forfeitures _ -
Sale of property and compensation for loss
Miscellaneous local sources -
I State aid - 265,419 265,419
Total revenues 2,979,025 2,979,025 3,422,943 443,918
Appropriation of prior year's fund balance - - - -
I Total revenues and appropriation of
prior year's fund balance 2,979,025 2,979,025 3,422,943 443,918
EXPENDITURES AND ENCUMBRANCES
General government support 82,709 82,709 119,531 (36,822)
Public safety
Health
Transportation
Economic assistance&opportunity
Culture and recreation - - -
Home and community service 2,084,989 2,084,989 2,183,210 (98,221)
Employee benefits 3,190 3,190 2,105 1,085
Debt service 808,137 808,137 808,063 74
Total expenditures and encumbrances 2,979,025 2,979,025 3,112,909 (133,884)
IExcess(deficiency)of revenues and appropriation
of prior year's fund balance over(under) i.
expenditures and encumbrances 310,034 310,034
Other financing sources(uses):
Operating transfers in 17,687 17,687 (17,687)
Operating transfers out (17,687) (17,687) 17,687
Total other financing sources
Excess(deficiency)of revenues and appropriation
Iof prior year's fund balance and other sources -
!!
over(under)expenditures and encumbrances $ $ $ 310,034 $ 310,034
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See Notes to the Financial Statements
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TOWN OF WAPPINGER,NEW YORK
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDULE OF FUNDING PROGRESS
DECEMBER 31,2016
Unfunded UAL as a
Actuarial Actuarial Accrued Percentage
Actuarial Value of Accrued Liability Funded Covered of Covered
Valuation Assets Liability (UAL) Ratio Payroll Payroll
Year Ended Date (a) (b) _ (b-a) (alb) (c) b-a/c
12/31/2016 12/31/2016 $ - $8,551,107 $8,551,107 0.0% $3,282,463 260.51%
12/31/2015 12/31/2013 $ - $6,114,097 $6,114,097 0.0% $ 2,850,368 214.50%
12/31/2014 12/31/2013 $ - $6,114,097 $6,114,097 0.0% $ 2,482,941 246.24%
12/31/2013 12/31/2013 $ - $6,114,097 $6,114,097 0.0% $ 2,182,044 280.20%
12/31/2012 12/31/2011 $ - $6,237,176 $ 6,237,176 0.0% $ 2,271,310 274.61%
12/31/2011 12/31/2011 $ - $6,237,176 $6,237,176 0.0% $2,196,774 283.92%
12/31/2010 12/31/2009 $ - $4,925,385 $ 4,925,385 0.0% $ 2,326,424 211.71%
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12/31/2009 12/31/2009 $ - $4,925,385 $4,925,385 0.0% $ 2,117,550 232.60%
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See Notes to the Financial Statements
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Exhibit III
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF THE PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
DECEMBER 31,2016
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NYSLRS Pension Plan
Last 10 Fiscal Years*
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March 31,2016 March 31,2015
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Town's proportion of the net pension liability(asset) 0.0091834% 0.0089152% l
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Town's proportionate share of the net pension liability
(asset) $ 1,473,969 $ 301,177
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Town's covered-employee payroll $ 3,282,463 $ 2,850,368
Town's proportionate�rtionate share of the net
Pension liability
(asset)as a percentage of its covered-employee payroll 44.90% 10.57%
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Plan fiduciary net position as a percentage of the total
pension liability 90.70% 97.90%
*The amounts presented for each fiscal year were determined as of the System's measurement date
This schedule is presented to illustrate the requirement to show information for 10 years.
However,until a full 10-year trend is compiled,the Town will present
information for those years for which information is available.
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See Notes to the Financial Statements
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Exhibit IV
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF PENSION CONTRIBUTIONS
DECEMBER 31,2016
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NYSLRS Pension Plan
Last 10 Fiscal Years*
March 31,2016 March 31,2015
Contractually required contribution $ 504,348 $ 497,076
Contributions in relation to the contractually
required contribution 504,348 497,076
Contribution deficiency(excess)
Town's covered-employee payroll $ 3,282,463 $ 2,850,368
Contributions as a percentage of covered-employee
payroll 15.36% 17.44%
*The amounts presented for each fiscal year were determined as of the System's measurement date
This schedule is presented to illustrate the requirement to show information for 10 years.
However,until a full 10-year trend is compiled,the Town will present
information for those years for which information is available.
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See Notes to the Financial Statements
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OTHER SUPPLEMENTAL INk'ORMATION
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EXHIBIT
TOWN OF WAPPINGER,NEW YORK
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31,2016
TOTAI
MISC NON-MA,
LIGHT AMBULANCE GOVERNMi
j FUND FUND FUND'
F ASSETS
Cash and cash equivalents $ 34,776 $ 126,971 $
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Total assets $ 34,776 $ 126,971 $
LIABILITIES AND FUND EQUITY
i , LIABILITIES
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Accounts payable $ 3,870 $ 918 $
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Total liabilities 3,870 918
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!i FUND BALANCE
Unassigned 30,906 126,053
!I Total fund balance 30,906 126,053
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Total liabilities
and fund balance $ 34,776 $ 126,971 $
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See Notes to the Financial Statements
54
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EXHIBIT VI
TOWN OF WAPPINGER,NEW YORK
COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31,2016
TOTAL
MISC NON-MAJOR
LIGHT AMBULANCE GOVERMENTAL
FUND FUND FUNDS
REVENUES
Property taxes $ 50,677 $ 395,000 $ 445,677
Real property taxes items - 1,442 1,442
Use of money and property 33 172 205 j
Total revenues 50,710 396„614 447,324
EXPENDITURES
General government support - 16,01.9 16,019
Health - 32:3,174 323,174
Transportation 44,953 - 44,953
Total expenditures 44,953 339,193 384,146
Excess of revenues over expenditures 5,757 57,421 63,178
Funk Balance,December 31,201:5 25,149 68,632 93„781
Fund Balance,December 31,2016. $ 30,906 $ 126,053 $ 156,959
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See Motes to the Financial Statements
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I IMITED LIABILITY PARTNERSHIP
CA RT8 IED PUBM ACCOUNTANTS BUSIN ES DEVELOPMENT T C NISUI.I'ANdT
INDEPENDENT AUDITOR'S REPORTON INTERNAL CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH CrOVERN MENT'AUDITINGS'TANDAARDS
To the Supervisor and
Members of the Town Board
Town of Wappinger,New York
20 Middlebush Road
Wappingers Falls,New York 12590
We have audited, in accordance with the auditing standards generally accepted in the United States of A
the standards applicable to financial audits contained in Government Auditing Standards issued by the C
General of the United States,the financial statements of governmental activities, each major fund, and th
remaining fund information of the Town of Wappinger,New York,as of and for the year ended Deceiribc
1 and the related notes to the financial statements, which collectively comprise the Town of Wappinger, N
basic financial statements and have issued our report thereon dated August 24,2017.
Internal Control Over Financial Reporting
In planning and performing our audit, wa considered the Town of Wappinger, New York's internal o
financial reporting (internal control) to determine the audit procedures that are appropriate in the circuit
the purpose of expressing our opinions on the financial statements but not for the purpose of expressing an
the effectiveness of the Town of Wappinger„New York's internal control.Accordingly,we do not express
on the effectiveness of the Town of Wappinger,New York's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow inane
employees,in the normal course of performing their assigned functions to prevent,or detect and correct„mii
on a timely basis. A material weakness is a deficiency,or combination of deficiencies, in internal contra
there is a reasonable possibility that a material misstatement of the entity's financial statements will not be
or detected and corrected on a timely basis.A significant deficiencli is a deficiency,or a combination of d
in internal control that is less severe than a material weakness,yet important enough to merit attention by thl
with governance.
Our consideration of the internal control over financial reporting was for the limited purpose described
paragraph of this section and was not designed to identify all deficiencies in internal control that might
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies ma
were not identified. Given these limitations, during our audit we did not identify any deficiencies in inte
that we consider to be material weaknesses. We did identify certain deficiencies in internal control, desc
accompanying Schedule of Findings, Recommendations and Responses (Findings 1 and 2) that we cot,
significant deficiencies.
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ICompliance 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
instances of noncompliance or other matters that are required to be reported under Government Auditing Standards
and which are described in the accompanying Schedule of Findings,Recommendations and Responses(Findings 3,
4,and 5).
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Town of Wappinger,New York's Response to Findings
Town of Wappinger,New York's response to the fmdings 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
I:
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 Town of Wappinger,New York's
internal control or on compliance.This report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the Town of Wappinger,New York's internal control and compliance.Accordingly,
this communication is not suitable for any other purpose.
X8`I'C(,,4s, LLB
r
Poughkeepsie,New York
August 24,2017
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EA
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF FINDINGS,RECOMMENDATIONS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31,2016
SECTION I-SIGNIFICANT DEFICIENCIES:
PRIOR YEAR FINDINGS-CONTINUING:
Finding 1—Escrow Recordkeeuing
Findin : The Town has applied considerable effort in the reconciliation of applicat
subsidiary ledgers to the Town's general ledger balances, however material d
continue to exist,the amounts of which change from year to year. Such change
an unreliable reconciliation methodology. Our examination of the escrow recc
revealed the following:
• As of December 31, 2016,the escrow subsidiary ledgers exceeded the gene
it balances by$204,273.
• Comments related to escrows have been made since 1993;
Cause: In the past there existed a lack of communication between the Planning Depar.
the Accounting Department regarding fees charged to individual escrows.
schedules were not always updated and invoices were coded incorrectly. Recot
between the Planning Department and the Accounting Department were not
regularly so that these errors were not caught on a timely basis.
Effect: The Town is responsible for payment of fees that should be taken from escrow,
If not reconciled timely,the Town may not be able to recover these fees from d
ilk
applicant.
Recommendation: No amounts should be returned to an applicant until a thorough review of all to
has been made,including confirming receipt of escrow funds received and anal
disbursements made on that applicant's behalf, This will serve as a check that
not being returned appropriately.
A significant portion of the outstanding escrow liability pertains to inactive ap
The Town should re-review these balances, including making inquiries of eng
j attorneys regarding their fees related to these applicants, to confirm that all a
disbursements have been charged to the appropriate applicants.
�j The analysis of Escrow schedules should continue to be completed on a mon
comparing department receipt records and charges posted to individual escrow
to general ledger transactions. Names of escrows should be consistent,such a.
j name of property,to avoid confusion between department and general ledger trE
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�. Finding 2-Escrow Funds Negative Balances
4 F ndine: Payments have been made in excess of escrow amounts collected resulting
payments being made on behalf of individual project owners/developers. As of
II 31,2016, 134 of a total of 360 escrow accounts indicated debitlnegativc balanc
$135,141.
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TOWN OF WAPPINGER,NEW YORK Exhibit VIII
SCHEDULE OF FINDINGS,RECOMMENDATIONS AND RESPONSES(CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,2016
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SECTION I-SIGNIFICANT DEFICIENCIESO ED :
PRIOR YEAR FINDINGS—CONTINUING(CONTINUED):
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Findin 2-Escrow Funds Negative Balances Continued
Cause: The Town collects escrow.funds to ensure that costs incurred by the Town,while projects
g considered or subdivisions are beim
f!' ns dered 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.
Effect: Unanticipated liabilities could be incurred by the Town for which no revenues/funds have
beenp rovided.
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 there continue to be changes in the debit balances. Also,as
noted above a significant portion of these balances pertain to inactive or old applications,
amounting
to$104,566. Along with the reconciliations noted above, we recommend that
the Town make the confirmation
and collection of these balances ari ri
p o ty,reviewing the
pertinent documentation and determining a course of action for collection of each account.
SECTION II—OTHER MATTERS:
PRIOR YEAR FINDING--CONTINUING:
Findin 3--Capital Projects in Trust and Agency
Finding The auditors noted that certain capital projects were tracked in the Trust and Agency Fund.
The nature of trust and agency accounts makes it difficult to trach revenue and expenditures
related to large capital projects that span multiple years. Tracking such projects in trust
and agency accounts may lead to difficulty in reconciling revenue and expenditures upon
completion and close-out of the project.
Cause: Large capital projects that used trust and agency funds were not tracked in the capital
projects fund(recreation funds). 1
Effect: The reconciliation of revenues and expenditures during the closeout of large projects is
difficult.
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Recommendation: The auditors recommend that the Town record all capital projects in the Capital Projects
Fund. This will enable to Town to track related revenues and expense with ease and
accuracy.
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Exhib
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF FINDITSRECOMMENDATIONSYEAR
BEESpOSES(CONTINUED)
FORAED DECEMBER
SECTION II—OTHER MATTERS CONTINUED :
CURRENT YEAR FINDINGS:
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Finding 4—Pa roil TesI
Findin During fieldwork,the auditors selected a sample of payroll items for testing. The a
noted that one employee did not have a Form I-9 or W-4 on file. The auditors also
that multiple selections did not have department head approval on the timesheets
{ payment.
Cause:
Form I-9 and W-4 were not kept on file. In addition,payroll checks are being cu
proper approvals are obtained.
Effect:
The Town may not be in compliance with labor laws that require Form 1-9 and W
kept on file. 1n addition, employee timesheets are not being reviewed and appr:
supervisors prior to payment.
p approvals on all timesheets prior to t
Recommendation: We recommend that the Town obtain proper
In addition,employee files should be reviewed to ensure that Form I-9 and W-4 at
for all employees.
Finding 5—Ilighwav Department Testing
Findin : During fieldwork,the auditors selected a sample of invoices from the Highway De
for testing and noted the following exceptions:
• 7 out of 18 vouchers did not have approval for payment
3 out of 168 deliveries did not have corresponding receiving slips
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128 out of 165 receiving slips did not have a"received by signare
3 orders made in 2017 were recorded on the 2016 books
The Town significantly over-estimated the quantity of salt that they would
ij the 2015-2016 winter season under the state contract.
Cans The Highway Department did not obtain proper approvals and documentatii
,II deliveries and payments. In addition, quantities of salt needed for the 2015-20
season were significantly over-estimated. The Finance Department did not recc
�. invoices in the proper period.
Effect: Expense relating to salt purchases for 2016 was overstated. Procurement proeec
not properly followed. Due to over-estimation of salt quantities needed,the Tov
I able to take advantage of lower salt prices under new state contracts as they w
I in at a higher rate on the old contracts.
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j I Recommendation: We recommend that the Town obtain proper approvals on all vouchers and recE
I° prior to payment. In addition,the Highway Department should develop a methc
making better estimates of salt quantities that will be needed for each season. T
Department should review invoices to ensure that they are recorded in the prop
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Exhibit VIII
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF'FINDINGS,RECOMMENDATIONS AND RESPONSES(CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,2016
STATUS OF PRIOR YEAR FINDINGS•
Satisfied: Prig Year Finding 3—Cash Disbursement Testing
61.
OWN OF W PINGS , TOWN 134
SU'VERVISOR A'
SECRETARY John Fe
iraev iwraNctoaaMaclo
?a�wrlr r`�l "rrr.srr
ROAD TOWN C
\K,NJ1r"I CrERS FALJ,w, NN 125aBd, taartrr N�
IINNA,Y S l'`1'
4+CSI 5 r:gab r-4 p,8-ki J iar w'wzaa a.°aret
(845)297-4558 Office of tare "11°rt�t�wn Supervisor
August 1 , 21117
Management Response to Findings and cccrrxrrrruendations _ l)l.ti
I. Escrow Record Kee in
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large]DiffereON-een escrow subsidiary ledgers and the general ledger are
historical, t:'urrrcratly, invoices are cratered into the subsidiary escrow ledgers as theyal
received, 1'ayraacrr.t to professionals for escrow services are made with sort"licrerat 1ralaurrt
I aur escrow r;tc;�;rrlurrt:s, r�rt.l�r�:ri; they are put on1rlcl Escrowu�ucec�rur�t owners are caar-�ta+�trM
by phone and mail erre aregualar basis to replenish overd ue accouuntws The recouciliatit
process in place ensuresthere are rao differences between the : uuhsidiary lechers and tl
enerral ledger for new accounts and ongoing trartsaactrcaras.
2. Escrow Funds Negative Balancesi
All, escrow account balances earrararlaecl for reirrahurrseinerats arc reviewed by separately
by flares departments before any lravr-nent is arras be '1'owvrr will continue it) work wit]
its partners on the collection of itract!ive/old escrow ar.ccourrit balances,
A. Capital Projects in Frust and Agency
e welcoraae workingwith our auditors ora a n ethocl that will ensure the capture o1"lal
capital projects that are initially recorded in the truest and agency tunas into the care
laraaa ects fund. l lcaasc clarify if it is yourr°scone neradation to leave out large; brow
entirely otat of the burst andAgency' FRuandu
1 4. Payroll Testilig X11 the personnel missing 1'orrn 1-9 or W-4 for orre employee was an isolated case
�r tyles have been reviewed lar ensure aril luatvc 1 ornis, 1-9 and �-4 in place, 1.,,ast May o1"
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2016, the Supervisor requested that all payroll timesheets came,to her office for arlalarr.ar
Initially this, happened, but then those who diel not have department heads cootiunued tct
bypass this process and directly sent them to the payroll clerwlc rhe Supervisor has sail
t, Ittl'low ark rrreraac;r to the departnient heads to remind tlaeraa tlarrt this is it, fact in kcrrce aarai
that it is a measure of accountability and overnight, The Supervisor and /or her
administrative assistant will oversee all of the t'uraacsheets, so that there is ars additional
stele in the process for accuracy and accountability. The payroll register is approved hl
the Comptroller being payroll checks acre cut.
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. Hi h, gay Department'restirnr
All, the highway, vouchers were aproved before payment was processed, It is possible
that you rnnay have had �o, pies of purchase orders, which had not been submitted tit•
payment. Ifighway officialshave been reminded to ensure all receiving slips nrrc S1 rncd.
Orders dior salt quantities, for 2015-2016 were based wwnn theTown's, ordering trends for the
past, two years. In any ease., it is impossible to raCCUr{atcly predict each winter season wv°ith
10:01% certainty. e Ii