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2007 Audit IIIIiI iIIII III III ... III - TOWN OF WAPPINGER, NEW YORK FINANClALSTATEMENTS - AS OF AND FOR THE YEAR ENDED DECEMBER 31.2007 III ... ... III .. iIIII iIIII .. . .. .. .. .. .. .. TOWN OF WAPPINGER, NEW YORK TABLE OF CONTENTS DECEMBER 31. 2007 .. .. DESCRIPTION PAGE (S) .. Independent Auditors' Report .......... ..... ........ ....... .................... ........ ............... .......... ....... ............ 1-2 .. 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 ..................................................................3-4 .. .. Management's Discussion and Analysis (unaudited) For The Year Ended December 31, 2007 ......... ...................................................................... 5-13 BASIC FINANCIAL STATEMENTS: .. Government-Wide Financial Statements: .. Statement ofN et Assets - December 31, 2007................................................................. .........................................................14 .. Statement of Activities - For the Year Ended December 31, 2007 ........ ...................... ............ .................... ................... .................. ............ 15-16 .. Fund Financial Statements: Balance Sheet - Governmental Funds - December 31, 2007.................................................. 17-18 .. Reconciliation of Governmental Funds Balance Sheet To The Statement of Net Assets - December 31, 2007..............................................................19 . III Statement of Revenues, Expenditures and Changes In Fund Balances- Governmental Funds - For the Year Ended December 31, 2007............ .................... ........................... ............. ....... 20-21 - . .. .. .. .. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities - For the Year Ended December 31,2007............................................22 ... Statement of Net Assets - Fiduciary Funds - December 31,2007 ... ........... .... '" .... ..... ......23 .. Notes to the Basic Financial Statements .................................................................................. 24-44 .. REQUIRED SUPPLEMENTAL INFORMATION: III Exhibit I Budgetary Comparison Schedule - General Fund, Highway Fund, Water Fund and Sewer Fund For the Year Ended December 31,2007 .............................................................................. 45-48 .. OTHER SUPPLEMENTAL INFORMATION: III Exhibit II Combining Balance Sheet - Non-Major Governmental Funds - December 31, 2007 ..............................................................................49 Exhibit III Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non-Major Governmental Funds For the Year Ended December 31, 2007.........................................................................50 ... III ... .. .. ill ... ... II. .. ~~ Beechwood Office Park SEDORE & COMPANY 2678 South Road, Suite 101 Poughkeepsie, NY 12601 rei 845.485.5510 fa, 845.485.5547 FiJ;';'i/1 845.897.1040 www.sedoreco.com .. III Certified Public Accountants, pc. III INDEPENDENT AUDITORS' REPORT j,nl/n L S!'do!'c, F CI>1 ivld!'/.: S. OSI/II/i'flll, CI';1 jilll/CJ f:' Lmc!'!o, F. ('j~'1 lilith' AI. fJilJIIll:r;dll, (j~'l k~lrell l' !-It/liscll, ('I'll ... L. 8ml/'!!, (I~I Oidr!CS R. Rd/'. /r. U>l .. III To the Supervisor and Members of the Town Board Town of Wappinger, New York 20 Middlebush Road Wappingers Falls, New York 12590 .. II. 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, 2007, as listed in the Table of Contents. These financial statements are the responsibility of the Town of Wappinger, New York's management. Our responsibility is to express opinions on these basic financial statements based on our audit. .. II. 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 the 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 of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. III .. III As discussed in Note A.C, to the financial statements, the Town has not recorded certain infrastructure assets in governmental activities and, accordingly, has not recorded depreciation expense on those assets. Accounting principles generally accepted in the United States of America require that those general infrastructure assets be capitalized and depreciated, which would increase the assets and expenses of the governmental activities. The amount by which this departure would affect the assets and expenses of the governmental activities is not reasonably determinab Ie. .. ... In our opinion, because of the effects of the matter discussed in the preceding paragraph, the financial statements referred to above do not present fairly, in conformity with accounting principles generally accepted in the United States of America, the financial position of the governmental activities, of the Town of Wappinger, New York, as of December 31, 2007, or the changes in financial position thereof for the year then ended .. .. iii. Large Firm Expertise,.., Local Firm Service 1 . . . 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 financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining non-major fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. .. ... . In accordance with Government Auditing Standards, we have also issued our report dated December 29, 2008 and April 30, 2009 on our consideration of the Town of Wappinger, New York's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contract and grants. The report on compliance with laws and regulations and internal control over financial reporting is an integral part of an audit performed in accordance with Government Auditing Standards and, in considering the results of our audit, this report should be read in conjunction the auditor's report on the basic financial statements. ~ \l ~-A~) C/#s Poughkeepsie, New York '" . (;:l December 29, 2008, except as noted in our report on internal control and compliance dated December 29,2008 and April 30, 2009. .. . .. iiIllI . iiIllI ilia .. .. .. .. ... .. 2 III ~~ Beechwood Office Park SEDORE & COMPANY 2678 South Road, Suite 101 Poughkeepsie, NY 1260] [,I 845485.5510 fax 845485.5547 li,MilI845.897.1040 www.sedoreco.com III .. Certified Public Accountants, pc. .. 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 /mlJ('s 1.. Sedore, F, CI~" A/,II-k S. OSlIllimll, (Jil jallln F {el/aili, jl:, CI~4 {ill(!,l M. H,II/I/I:~all, (.Ill !\~zr{,lI r I jill/JOI, cn~ .. /c!rn'I. 811111'11, U/I (j,,,,.!n R. R."c, jl:, (OP" .. .. 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 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, 2007, which collectively comprise the Town of Wappinger, New York's basic fmancial statements and have issued our report thereon dated December 29, 2008 and April 30, 2009. 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 the Government Auditing Standards, issued by the Comptroller General of the United States. .. .. Iiia Internal Control Over Financial Reportine: III In planning and performing our audit, we considered the Town of Wappinger's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Wappinger, New York's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town of Wappinger, New York's internal control over financial reporting. Our consideration of the internal control over financial reporting was for the limited purpose described in the preceding paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. However, as discussed below, we identified certain deficiencies in internal control over financial reporting that we consider to be significant deficiencies. .. .. I11III .. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Town of Wappinger's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted .. .. Large Firm Expertise"' Local Firm Service 3 III III .. accounting principles such that there is more that a remote likelihood that a misstatement of the Town of Wappinger's financial statements that is more than consequential will not be prevented or detected by the Town's internal control. As more further described in a separate letter dated December 29, 2008 and April 30, 2009, we consider the findings related to general ledger reconciliations, escrow recordkeeping and escrow fund negative balances to reflect significant deficiencies in internal controls. .. - A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Town of Wappinger's internal control. ... Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies and, accordingly, would not necessarily disclose all significant deficiencies that are also considered to be material weaknesses. However, we believe that none of the significant deficiencies described above to be a material weakness. - .. We noted others findings involving the internal control over financial reporting that we have reported to the management of the Town of Wappinger, New York in a separate letter dated December 29,2008 and April 30, 2009. .. Compliance and Other Matters .. As part of obtaining reasonable assurance about whether the Town of Wappinger, New York's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. .. .. .. We noted certain other matters that we reported to management of the Town of Wappinger in a separate letter dated December 29,2008 and April 30, 2009. .. The Town of Wappinger's response to the findings identified in our audit is included in the separate letter described above. We did not audit the Town's response and, accordingly, we express no opinion on it. - This report is intended solely for the information and use of the Supervisor, Town Board, Comptroller, management, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. ~ I< ~~,C/#:S- Poughkeepsie, New York December 29,2008, except as noted in the separate letter dated December 29,2008 and April 30, 2009. .. III . - 4 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2007 (Un-audited) .. - 1. Overview of the Financial Statements .. These Audited Financial Statements consist of five parts. The Independent Auditors Report on our Financial Statements, Management's Discussion and Analysis (this section), Government Wide Financial Statements, Fund Financial Statements and Notes to the Financial Statements. - .. -Government-Wide Financial Statements provide both long term and short term information about the Town's overall financial status. They report information about the Town as a whole using accounting methods similar to private sector companies. -Fund Financial Statements focus on the individual parts of Town government, reporting the ... Town's operations in more detail than the Government -Wide Financial Statements. They focus on the most significant or "major" funds-not the Town as a whole. See Note A in the notes to the financial statements for information regarding individual types of funds. .... -Notes to the Financial Statements provide further explanation and support for the information contained in the Financial Statements. ... 2. Financial Analysis of the Town as a whole .. Assets 2007 2006 Change Non-Capital $ 7,601,318 $ 9,278,461 $ (1,677,143) Capital 27,826,341 25,239,062 2,587,279 .. Total Assets $ 35.427.659 $ 34.517.523 $ 910.136 Liabilities .. Current $ 7,047,657 $ 17,464,707 $ (10,417,050) Non-Current 29,490,846 20,126,225 9,364,621 Total Liabilities 36,538,503 37,590,932 (1,052,429) .. Net Assets: Capital 5,898,337 8,584,136 (2,685,799) .. Restricted 494,826 442,686 52,140 Unrestricted (7,504,007) (12,100,231) 4,596,224 Total Net Assets (1,110,844) (3,073,409) 1,962,565 .. Total Liabilities and Net Assets $ 35.427.659 $ 34.517.523 $ 910.136 .. .. 5 .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2007, Cont'd. (Un-audited) ill .. Revenues .. Program Fines, Fees & Charges Operating Grants Capital Grants General Revenues Property Taxes Other Taxes Investment Earnings State Aid Other Revenues Total Revenues Expenses General Govenunent Support Public Safety Heahh Transportation Economic Assistance Culture and Recreation Home and Cormmmity Service Other ... .. .. .. ... .. .. Total Expenses Change in Net Assets ill Governmental Funds: .. GENERAL FUND 2007 $ 3,016,217 $ 113,909 184,325 5,835,797 2,703,917 937,336 394,090 258,804 13,444,395 2,833,492 641,672 417,439 1,887,805 28,227 972,791 3,100,783 1,599,620 11,481,829 $ 1.962.566 $ 2006 3,382,393 17,923 123,001 5,697,569 2,827,818 861,078 286,829 144,564 13,341,175 2,641,444 600,189 419,074 2,249,411 24,489 952,211 3,081,496 1,487,811 11,456,125 1.885.050 $ Change (366,176) 95,986 61,324 138,228 (123,901) 76,258 107,261 114,240 103,220 192,048 41,483 (1,635) (361,606) 3,738 20,580 19,287 111,809 25,704 77.516 The majority of activity for the Town is presented in the General Fund. Fund Balance for the General Fund decreased by $458,349 from 2006 to 2007. The major reason for the decrease was the financing of a lawsuit settlement in the amount of $300,000, through a bond anticipation note. Such notes are short term and do not result in the recording of revenue. As funds are raised to pay the debt service, revenues will be recorded. .. .. .. Total General Fund Equity for 2007 is approximately $1,161,733 nearly all of which is designated or restricted for particular purposes. III .. 6 .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2007, Cont'd. (Un-audited) .. .. The Following Charts describe significant categories of General Fund revenues and ex enses: .. General Fund Revenues 2007 .. .. 23% . Property Taxes & Tax Items . State & Federal Aid o Sales and Franchise Tax 27% 5% o Interest & Earnings . Departmental Income 6% . Licenses and Permits . All Other 30% ... .. .. .. .. .. General Fund Expenses 2007 .. 1% .. .. .. III 12% 4% 8% .. . General goverIn'reIlt support . Public safety o Transportation o Culture and Recreation . HOlre and comrunity services . F1qJloyee benefits . Debt Service Ili11 All Other 7 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31,2007, Cont'd. (Un-audited) .. HIGHWAY FUND ... The Highway Fund ended the year with $192,885 in Fund Balance. .. The following charts describe the significant categories of Highway Fund revenues and expenses: .. Highway Fund Revenues 2007 .. .. . Property Taxes . Sales Tax o Transfers from Other Funds o State & Federal Aid . Other Revenue .. .. .. .. Highway Fund Expenses 2007 .. . Street Maintenance 8% .. . Penmnent Road IrqlroveIrents o Snow Rermval .. o Other .. . MachireIy Purchase and Maintenance . Fnployee Benefits ... 15% . Debt Service .. 8 .. III. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31,2007, Cont'd. (Un-audited) .. WATER FUND .... The Town operated four water districts after consolidation during 2007 with an overall Fund Balance of $203,075. Operating revenues totaled $1,624,314 with the expenses totaling $1,614,872 resulting in excess of revenues over expenditures in the amount of $9,442. The Town has consolidated several districts into the Central Wappinger Water district during the year. .. ... SEWER FUND ... The Town operated nine Sewer Districts during 2007 with an overall Fund Balance $1,609,224. Operating revenues totaled $3,427,254 with the expenses totaling $3,786,908 resulting in excess (deficiency) of revenues over (under) expenditures in the amount of ($359,654), which is less than planned as the Town had appropriated Fund balance in the amount of $585,733 in the 2007 Budget. .. .. BUDGETARY HIGHLIGHTS ... The Town Budget is adopted in November 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 .. ~ ... .. .. .... .. ... 9 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2007, Cont'd. (Un-audited) .. .. 3. Activities regarding capital assets, long and short term debt .. The Town spent over three million dollars on sixteen capital projects in 2007. The top five projects were: the Carnwath (Greystone) Renovation, Fleetwood Water, Central Wappinger Water, Highway Blacktop Maintenance, Highway Construction and Maintenance, and the North Wappinger Water Projects. The expenditures for these projects accounted for eighty-nine percent (89%) of the total capital expenditures. ... .. ... The Central Wappinger Water Improvement Area 1999 -2R project has connected six of the Town's water districts to a common source of water. It is expected that the project will be completed in the year 2008. The project expenses are funded entirely by the property owners in the district. Long-term financing (serial bonds) was issued in 2007 in the amount of $7,380,000, part ofa total issue of$11,580,000. .. .. The other projects related to town-wide road blacktopping and drainage, fuel tank replacements, roof stabilization, and water and sewer district improvements, other than grant revenue, are funded by the General, Highway Funds or by the property owners in each water and sewer district. Future bonding is expected to be issued to fund these projects. Please review the notes to the financial statements for information regarding these issues. .. ... Long Term Debt ... The Town received a Moody's rating of Aa3 when it issued new bonds in 2007 and has maintained this rating. This is the fourth highest rating possible and the highest for a municipality in Dutchess County. .. Total long term debt at the end of2007 was $31,025,000. Only, $6,434,315 of this balance is General Fund debt. The majority of the Town's debt relates to its water and sewer districts amounting to $9,413,189 and $15,177,496, respectively. Water and sewer debt is paid by the property owners in the respective districts. .. .. .. .. 10 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2007, Cont'd. (Un-audited) .. .. Short Term Debt .. The Town currently has three Bond Anticipation Notes (BANs) outstanding, $3,657,000, all maturing May 5,2008 and funding various projects within the Town. Please review the notes to the financial statements for further information regarding short- term debt. ... 4. Currently Known Facts Bearing on the Future .. The Town of Wappinger, participating in the Southern Dutchess Consortium, whose purpose was to bring property assessments to full valuation, to provide equitable tax distribution among all homeowners within the town, county and shared school districts, completed the project in 2007. This revaluation went into effect for the 2008 tax levy. .. .. In addition, the Town was able to settle sixteen tax certiorari cases in 2008, some of which were pending since 2000. In fifteen cases, the Town received favorable decisions and in one case the settlement resulted in a minor refund. .. The assessment roll established in 2008 for 2009 taxes resulted in homestead assessments decreasing by an average of 5.85%. However, overall, the proportion of non-homestead to homestead assessments approximately changed by 2%. Non-homestead assessments for 2009 are 37% of the total and homestead assessments are 63%, instead of 35% and 65%, representing a shift in the tax burden away from homeowners to commercial properties. lit .. The Town, at an approximate cost of $35k, implemented an updated financial software suite, replacing a DOS based product last updated in 1998. The new package is GASB 45 compliant and ties together the accounts from the Town Clerk, Code Enforcement, Recreation and Sewer/Water department, thus eliminating journal entry errors from duplicative efforts. The IT infrastructure was upgraded with the implementation of the software package, moving forward two generations of operating system with some resultant hardware upgrades. This has allowed greater departmental functionality and provided a higher level of security when paired with the new servers. A redundant backup system was employed for the accountant's computer to ensure the integrity of the information. .. .. .. .. .. .. 11 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2007, Cont'd. (Un-audited) .. 4. Currently Known Facts Bearing on the Future, (Continued) .. .. The Town moved from an appointed comptroller to a competitive Civil Service class accountant to alleviate appointment changes due to changes in the political climate. As the Town operates on a two year election cycle, they have experienced three comptrollers in the past ten years. Effective January 2009, the accountant is insulated from the political process and subject to removal only through Civil Service proceedings. As this decision was made in a bi-partisan fashion, it is believed that this will provide stability to a previously changeable environment. Additionally, the appointee holds an international CPA designation, Master of Business Administration/finance degree, lending to the integrity of the decision. In addition, the Town suffered a loss in personnel in May of 2007 through the bookkeeper position, and chose not to fill such until the start of the new administration in January 2008. The position was filled with a candidate with more than ten years of corporate bookkeeping expenence. .. .. .. .. Emphasis has been placed on the organization and correction of the Town's more than 250 escrow accounts held on behalf of planning or zoning projects. While approximately 50% of the accounts reflect current projects before the Town, the remainder are split into dormant or completed projects, with funds either overdue to the applicant in a range of 2 to 15 years or funds due to the Town, with some exceeding the statutory collectable period of six years. The Town has rectified thirty-five accounts in 2008. .. .. III In addition, the Town has dedicated an employee, certified through Civil Service as an account clerk, to oversee the escrow accounts in July 2008. .. In order to strengthen the verification process, the Town Board has undertaken a review of all vouchers/invoices prior to payment in 2008. While this has been a cumbersome process, as the review occurs at the end of the twice monthly evening meetings, corrections in the payment process have been incremental. An added benefit of this process allows the taxpayer to review the expenses via the internet. III - The Town plans to complete the retroactive reporting of its infrastructure assets in 2009 as well. .. .. .. 12 ... .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31,2007, Cont'd. (Un-audited) .. 4. Currently Known Facts Bearing on the Future, (Continued) - .. The Town of Wappinger website was resurrected in May of2008 to a point that a majority of processes can be initiated or completed on-line. The Town plans to further these functions in the upcoming years. .. The Court offices upgraded their payment process to include the use of credit cards, thus eliminating the frequency of collection actions or bounced checks. .. .. .. .. .. .. .. . .. .. .. 13 .. .. TOWN OF WAPPINGER, NEW YORK STATEMENT OF NET ASSETS DECEMBER 31. 2007 GOVERNMENTAL ACTIVITIES .. ASSETS .. Current assets: Cash and cash equivalents Receivables (net) Inventories Deposits with other governments Prepaid expenses Total current assets $ 5,721,808 1,763,076 78,491 5,000 32,944 7,601,318 .. .. Capital assets: Land Infrastructure, net of depreciation Buildings, machinery and equipment, net of depreciation Construction in progress Total capital assets 7,782,217 4,627,875 4,783,637 10,632,612 27 ,826,341 .. Total assets $ 35,427,659 .. LIABILITIES .. Current Liabilities: Accounts Payable Accrued liabilities and retainage payable Notes payable Deferred revenue Due to other governments Current portion oflong-term liabilities Landfill remediation liability Bonds payable - Capital Bonds payable - Non-capital Total current liabilities $ 562,415 591,280 3,657,000 2,883 23,151 ... .. 10,928 780,872 1,419,128 7,047,657 .. .. Non-current liabilities: Judgment and claims Compensated absence liabilities Landfill remediation liability Bonds payable - Capital Bonds payable - Non-capital Total non-current liabilities 80,000 235,572 350,274 15,432,132 13,392,868 29,490,846 .. Total liabilities 36,538,503 .. .. NET ASSETS Invested in Capital Assets, net of related debt Restricted for: Recreation Umestricted 5,898,337 Total net assets 494,826 (7,504,007) (1,110,844) .. Total liabilities and net assets $ 35,427,659 .. The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. 14 .. .. TOWN OF WAPPINGER, NEW YORK STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31. 2007 till .. OPERATING CHARGES GRANTS AND FUNCTIONS/PROGRAMS EXPENSES FOR SERVICES CONTRIBUTIONS Governmental Activities: .. General government support $ 2,881,738 $ 11,605 $ 54,771 Public safety 641,672 384,088 Health 417,439 3,745 till Transportation 1,887,805 2,343 11,469 Economic assistance & opporhmity 28,227 Culture and recreation 972,791 86,860 8,517 .. Home and community services 3,052,537 2,527,576 39.152 Interest on long-tenn debt 1,599,620 till Total governmental activities 11,481,830 3,016,217 113,909 General revenues Taxes: Real property taxes Real property tax items Sales tax Mortgage tax Franchise taxes Umestricted investment earnings Grants and contributions not restricted to specific programs Special item-Gain on sale of property and compensation for loss Miscellaneous Total general revenues, special items and transfers .. .. till till till Change in net assets Net assets - beginning III Net assets - ending III .. .. .. The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. .. 15 .. - . . - - 16 - .. TOWN OF WAPPINGER, NEW YORK BALANCE SHEET GOVERNMENTAL FUNDS III DECEMBER 31. 2007 .. GENERAL HIGHWAY WATER SEWER FUND FUND FUND FUND ASSETS .. Cash and cash equivalents $ 989,255 $ 199,683 $ 133,974 $ 643,254 Receivables: I Charges for services 306,060 529,682 .. Other 147,064 Deposits with other govenunents Due from other funds 1,143,879 100,000 9,833 763,025 .. Due from other govenmlents 417,717 State and federal receivable 302,743 59,580 Inventory, at cost 78,491 .. Prepaid expenses 8,121 6,823 18,000 Total assets $ 3,008,779 $ 444,577 $ 449,867 $ 1,953,961 III LIABILITIES AND FUND EQUITY LIABILITIES .. Accounts payable $ 245,106 $ 119,559 $ 13,824 $ 175,945 Accrued liabilities 7,081 4,604 43 107 Retainage payable 983 .. Bond anticipation notes payable 300,000 Due to other funds 1,267,924 127,448 232,925 168,685 Due to other govenmlents 23,070 81 .. Deferred revenues 2,883 Total liabilities 1,847,047 251,692 246,792 344,737 .. FUND BALANCE Flmd balance (deficit): Reserved for: .. Prep aids and inventory 8,121 85,314 18,000 Debt service 164,050 Miscellaneous 402,900 .. Unreserved: Recreation 494,826 Subsequent year's expenditures 253,914 .. Undesignated (162,078) 107,571 203,075 1,591,224 Total fund balance 1,161,733 192,885 203,075 1,609,224 - Total liabilities and fund balance $ 3,008,779 $ 444,577 $ 449,867 $ 1,953,961 - The accompanying Notes to the Financial Statements should be read in cOl1iunction with these Financial Statements. .. 17 .. .. .. .. CAPITAL NON- TOTAL PROJECTS MAJOR GOVERNMENTAL FUND FUNDS FUNDS .. $ 3,667,935 $ 87,707 $ 5,721,808 .. 835,742 229 147,293 5,000 5,000 37,420 83 2,054,240 .. 417,717 362,323 ... 78,491 32,944 $ 3,710,584 $ 87,790 $ 9,655,558 .. .. 111,435 164,050 .. 402,900 494,826 .. 81,618 335,532 52,367 (54) 1,792,1 05 52,367 81,564 3,300,848 .. $ 3,710,584 $ 87,790 $ 9,655,558 .. .. 18 .. .. .. TOWN OF WAPPINGER, NEW YORK RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS DECEMBER 31. 2007 .. .. Total fund equity for governmental funds $ 3,300,848 .. Total net assets reported for governmental activities in the statement of net assets are different because: .. Capital assets used in govemmental activities are not financial resources and therefore are not reported in the funds. 27,826,341 III Long-term liabilities, including bonds payable, compensated absences, judgement and claims and landfill remediation liabilities are not due and payable in the current period .. and therefore are not reported in the funds. (31,701,774) .. Accrued interest is not reported in the funds. (536,259) .. Total net assets of govemmental activities $ (1,110,844) . .. .. ill .. III .. The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. 19 .. .. .. ... 21 .. .. III TOWN OF WAPPINGER, NEW YORK RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31. 2007 .. .. Net change in fund balance - total govenunent funds $ 9,163,682 The change in net assets reported for govenunental 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 anlount by which capital outlays exceeded depreciation expense in the current period. 2,587,279 .. .. Bond proceeds are reported on the financing sources in govenunental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the govenunental funds but reduces the liability in the statement of net assets. .. .. Debt issued: Serial bonds issued Bond anticipation note redeemed Repayments: Bond anticipation note principal Bond principal (11,580,000) (1,238,818) 1,238,818 1,830,000 III (9,750,000) III In tlle 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 2007 (47,278) III .. Some expenses reported in the statement of activities, such as compensated absences and landfill liabilities do not require the use of current financial resources and therefore are not reported as expenditures in govenunental funds. This amount represents the change between what was paid and what was accrued through 2007. 8,882 .. .. Net change in net assets of governmental activities $ 1,962,565 .. ... The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. 22 .. III TOWN OF WAPPINGER, NEW YORK STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUND DECEMBER 31. 2007 III III ... AGENCY FUNDS ASSETS ... Cash and cash equivalents $ 696,382 696,382 Total assets ... LIABILITIES ... Escrow funds returnable and other liabilities 696,382 696,382 ... Total liabilities III NET ASSETS $ 696,382 Total liabilities and net assets .. III III III .. III III ... The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements 23 ... .. .. III lit TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31. 2007 III NOTE A - Summary of Simificant Accountin2 Policies The Town of Wappinger, New York ("the Town") was incorporated on May 20, 1875, under the provisions of the State of New York. The Town operates under a Town Board form of government, consisting of a Supervisor and four Councilmen/women. The Supervisor serves as the Chief Executive Officer and as the Chief Fiscal Officer of the Town. .. lit The Town provides the following services: highway maintenance, water, sewer, planning, zoning, building and safety inspection, lighting, and culture and recreation. .. The Town's fmancial statements are prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental units (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The Town is also required to follow the pronouncements of the Financial Accounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do not conflict with or contradict GASB pronouncements, .in preparing its government-wide financial statements. The more significant accounting policies established by GAAP and used by the Town in preparing its government-wide and fund financial statements are discussed below. lit III ... 1. The Reportin2 Entitv .. The Town, for financial purposes, includes all of the funds relevant to the operations of the Town of Wappinger, New York. The financial statements include organizations, function and activities that are controlled by or dependent upon the Town. Control or dependence is determined on the basis of budget adoption, taxing authority, funding and appointment of the respective governing board. Under these criteria, no other entities are included in the Town's financial statements. .. .. 2. Basic Financial Statements - Government-Wide Statements .. The Town's basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town's major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business type activities. The Town's parks and recreation, public works, and general administrative services are classified as governmental activities. The Town's water services are also classified as governmental activities since user fees are not intended to cover all costs including depreciation. .. .. III .. 24 .. III III III TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 ... NOTE A - Summary of Sh!:nificant Accountine: Policies (Continued) 2. Basic Financial Statements - Government-Wide Statements (Cont'd) ... In the government-wide Statement of Net Assets, the governmental activities columns is presented on a consolidated basis by column, and is reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Town's net assets are reported in three parts-invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. The Town first utilizes restricted resources to finance qualifying activities. ... .. .. The government-wide Statement of Activities reports both the gross and net cost of each of the Town's functions or activities. The functions are also supported by general government revenues (property and sales taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the function (public works, community and youth services, etc.). Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. III .. ... 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 assets resulting from the current year's activities. ... 3. Basic Financial Statements - Fund Financial Statements III 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 fund of the Town or meets the following criteria: ... ... III a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least 10 percent of the corresponding total for all funds of that category or type; and .. 25 III .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 .. NOTE A - Summary of Sie:nificant Accountine: Policies (Continued) 3. Basic Financial Statements - Fund Financial Statements (Cont'd) .. 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 funds' measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. .. 1. .. 2. .. 3. .. The following is a description of the governmental funds of the Town: General fund 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. Highway fund is used to record the revenues and expenditures related to the maintenance of Town roadways. The Highway Fund is considered a major fund and is presented separately. Sewer Fund is used to record the revenues and expenditures related to the delivery of sewer services to the Town's customers. The Sewer Fund is considered a major fund and is presented separately. .. 4. Capital projects fund is used to account for financial resources to be used for the acquisition and construction of major capital facilities. The Capital Projects Fund is considered a major fund and is presented separately. However, no budgetary comparison schedule is presented as required supplemental information, as the Town is not legally required to adopt an annual budget for the Capital Projects Fund. .. .. .. 5. Non-major funds include those that are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These include the Water, Lighting and Miscellaneous (Ambulance) Funds. - - 26 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 .. NOTE A - Summarv of Sbmificant Accountinf! Policies (Continued) B. Fiduciary Funds III Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support Town programs. The reporting focus is on net assets and changes in net assets and 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 these assets are being held for the benefit of a third party and cannot be used to address activities or obligations ofthe government, these funds are not incorporated into the government-wide statements. .. 4. Basis of Accountinf! .. Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. .. 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 .. III 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. .. .. .. .. .. 27 .. ill ill IlilII TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 .. NOTE A - Summary of Shmificant Accountin2 Policies (Continued) 5. Financial Statement Amounts .. A. Cash and Investments .. Cash includes amounts in demand and time deposits, as well as, short-term investments. State statutes and the Town's own written investment policy govern the investment policies of the Town. The Town may invest its funds in banks or trust companies authorized to do business in the State of New York, as well as investing in obligations of the U. S. Treasury, U.S. Agencies, and obligations of the State of New York and its political subdivisions. Deposits not covered by Federal Deposit Insurance, are collateralized by the banking institutions with investments governed under state statutes. Short-term investments consist of investments in repurchase agreements. The repurchase agreements involve purchases by a broker of portfolio securities concurrently with an agreement by the broker to sell the same securities at a later date at a fixed price. Generally, the effect of such a transaction is that the Town can invest its excess cash balances at competitive interest rates. The Town reports its repurchase agreements at market value, which approximates cost plus accrued interest. The cash and investments of the Town at December 31,2007, are as follows: ... .. .. IlilII IlilII ~ IDGHWAY WAnR FUND FUND FUND SEWER FUND CAPITAL NON- PROJKTS MAJOR FUND FUNDS 'IOTAL IlilII Non-Interest Bearing Accounts $ 800 $ - $ - $ - $ - $ - $ 800 Interest Bearing Accounts 988.455 199.683 133.974 643.254 3.667.935 87.707 5.721.008 'IOTAlS $ 989,255 $ 199,683 $ 133,974 $ 643,254 $ 3,667,935 $ 87,707 $ 5,721,808 .. .. .. 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 third party custodian and not subject to custodial credit risk. .. .. .. 28 .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) .. DECEMBER 31. 2007 .. NOTE A - Summary of Shroificant Accountine: Policies (Continued) 5. Financial Statement Amounts (Cont'd) .. B. Inventories .. Inventories consist of significant expendable supplies primarily sand and road salt and are carried at cost. iIIIIII C. Caoital Assets Capital assets purchased or acquired with an original cost of $500 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: iIIIIII .. .. Buildings Infrastructure - Water & Sewer Infrastructure - Roads Machinery and equipment Improvements 15-40 years 40 years 15 years 5-15 years 10-30 years .. . GASB Statement No. 34 requires the Town to report and depreciate new infrastructure assets effective with the beginning of 2003. Infrastructure assets include roads, bridges, underground pipe (other than related to utilities), traffic signals, etc. These infrastructure assets are likely to be the largest asset class of the Town. Neither their historical cost nor related depreciation had historically been reported in the financial statements. The retroactive reporting of infrastructure is subject to an extended implementation period and is first effective for fiscal years ending in 2007. The Town implemented the general provisions of GASB Statement No. 34 in 2003 but had not implemented the retroactive reporting of infrastructure assets by the end of 2007 as required. It expects to implement those retroactive infrastructure provisions in the year ending December 31, 2008. .. /IIi .. .. .. - 29 .. 1M 1M .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2007 1M NOTE A - Summary of Sh!:nificant Accountine: Policies (Continued) 5. Financial Statement Amounts (Cont'd) 1M D. Accumulated Compensated Absences 1M 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: 1. 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. .. In accordance with the above criteria, the Town has accrued a liability for vacation pay, which has been earned and not taken by Town employees as of December 31, 2007, in the amount of $228,901. The non-current portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is maintained separately and represents a reconciling item between the fund and government-wide presentations. It is anticipated that none of these liabilities will be liquidated with expendable available financial resources. 1M .. E. Interfund Activity III Interfund activity is reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements. 1M 1M .. .. 30 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 ... NOTE A - Summary of Sisroificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) ... F. Bud2ets .. The Town employs formal budgetary accounting as a management tool, on a basis consistent with generally accepted accounting procedures. During the year, a budget was adopted and modified by the Town Council for the General Fund and Non-major Funds. Budgetary controls are established or adopted for the Capital Projects Fund on a project basis. Unused appropriations of the annually budgeted funds lapse at the end of the year. ... .. G. Pension Plans .. Plan Description The Town of Wappinger participates in the New York State and Local Employees' Retirement System (ERS), the New York State and Local Police and Fire Retirement System (PFRS) and the Public Employees' Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefits as well as death and disability benefits. Obligations of employers and employees to contribute and benefits to employees are governed by the New York 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 and administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations for the administration and transaction of the business of the Systems and for the custody and control of their funds. The Systems issue a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the New York State and Local Retirement Systems, 110 State Street, Albany, New York 12244. a:. .. Funding Policy .. .. The Systems are noncontributory except for employees who joined the New York State and Local Employees' Retirement System after July 27, 1976 who contribute 3% of their salary. Under the authority of the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of payroll of members, which shall be used in computing the contributions required to be made by employers to the pension accumulation fund. .. ... 31 .. .. ... ... TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 ... NOTE A - Summary of Sh~nificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) .... G. Pension Plans: Plan Description (Cont'd) The Town of Wappinger is required to contribute at an actuarially determined rate. The required contributions for the current year and two preceding years were: .. ERS .. . 2007 $ 206,422 2006 $ 263,931 2005 $ 238,735 .. .., The Town's contributions made to the Systems were equal to or in excess of 100 percent of the contributions required for each year. ... H. Post Emplovment Benefits In addition to providing pension benefits, the Town provides health insurance coverage and survivor benefits for retired employees and their survivors. Substantially all of the Town employees may become eligible for these benefits if they reach normal retirement age while working for the Town. Health care benefits and survivors benefits are provided through an insurance company whose premiums are based on the benefits paid during the year. The Town recognizes the cost of providing benefits by recording its share of insurance premiums as an expenditure in the year paid. .. ~ .. For the year of 2007 approximately $54,213 was paid on behalf of seventeen retirees, and recorded as expenditures in the General and Special Revenue Funds. ililll I. Property Taxes The Town submits an approved budget to the Dutchess County Commissioner of Finance by December 5th of the previous year. The County then establishes the warrant for the year, which is due and payable on or about January 1 of each year. The Town collects the taxes on behalf of the Town and County without penalty through February 28th and with penalties and interest through August 31st. The Town's portion of the taxes is recognized and transferred prior to the County's portion. Therefore, the Town receives its entire tax, leaving the unpaids to be collected by the County Commissioner of Finance. . ... .. ... 32 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 NOTE A - Summary of Simificant Accountine: Policies (Continued) .. 5. Financial Statement Amounts (Cont'd) - 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 fund. The remaining portion of such obligations is only reported in the statement of net assets, Long-Term Liabilities. .. .. K. Reservations of Fund Eauitv The Town records indicate that portions of the fund equity are segregated for specific future uses. The following details the description and amounts of the reserves used by the Town: .. .. BALANCE AT 12/31/07 General Fund .. Reserved for Prepaids and Inventory $ 8,121 Reserved for Debt Service 164,050 .. Reserved for Miscellaneous: Inspection Fees 402.900 Total General Fund 575.071 .. HighmlY Fund Reserved for Prepaids and Inventory 85.314 .. Se\\er Fund Reserved for Prep aids and Inventory 180.000 .. TOTAL FUND BALANCERFSl1RVFS $ 840,385 .. .. .. 33 .. - - - TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONTID) DECEMBER 31.2007 - NOTE A - Summary of Simificant Accountine: Policies (Continued) 5. Financial Statement Amounts (Cont'd) - L. Risk Manae:ement 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 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. - - - M. Use of Estimates - - The preparation of basic financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the amounts reported in the basic financial statements and the accompanying notes. Actual results could differ from those estimates. - NOTE B - Other Receivables Other Receivables at December 31, 2007, consist of the following: - - CAPITAL GENFRAL WATER SEWER PROJECTS FUND FUND FUND FUND TOTAL Accounts Receivable $ 147,064 $ - $ - $ 229 $ 147,293 Rents Receivable 306,060 529,682 835,742 TOTALS $ 147,064 $ 306,060 $ 529,682 $ 229 $ 983,035 - - - - - 34 - .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 III NOTE C - Interfund Receivables and Pavables and Transfers The following is a summary of amounts due from and due to other funds, as of December 31, 2007. These interfund balances have been eliminated as part of the aggregation of fund balances. Such balances arise through the use of a pooled cash disbursement account and the temporary funding of capital projects. III III .. AM:>UNT AM:>UNT FUND RFX:EV ABLE PAYABLE Gmeral $ 1,143,879 $ 1,267,924 Highway 100,000 127,448 Water 9,833 232,925 Sewer 763,025 168,685 Capital Projects 37,420 254,258 Non-Major 83 3,000 lOTAlB $ 2,054,240 $ 2,054,240 .. .. .. 'IRANSFERS 'IRANSFERS FUND IN our Highway $ 47,484 $ Water 24,246 28,430 Sewer 16,926 Capital Projects 28,430 88,656 lOTAlB $ 117,086 $ 117,086 .. .. .. .. .. .. - .. 35 - .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) .. DECEMBER 31. 2007 NOTE D - CaDital Assets .. The following is a summary of changes and adjustments in the Capital Assets, for the year ended December 31, 2007: .. BAlANCE BAlANCE JANUARY 1, DJOCE\1BER31, 2007 ADDIDONS (DISPOSALS) 2007 .. Land $ 7,782;217 $ $ $ 7,782,217 Buildings 5,589,358 5,589,358 .. Irnproverrents Other Than Buildings 726,446 726,446 .. Roads 1,584,137 1,052, 148 2,636,285 Infrastructure 2,354,641 276,374 2,631,015 .. MachineI)' & Fquiprrent 4,283,210 74,490 4,357,700 .. Construction in Progress 8,810,060 1,822,552 10,632,612 Total 31,130,069 3,225,564 34,355,633 .. Less accumulated dep-eciation Buildings 2, 184,211 143,954 2,328, 165 Irnproverrents .. Other Than Buildings 561,520 14,361 575,881 Roads 210,483 175,752 386,235 .. Infrastructure 187,415 65,775 253,190 MachineI)' & Fquiprrent 2,747,378 238,443 2,985,821 .. Total accumulated dep-eciation 5,891,007 638,285 6,529,292 Gmernmental actilities captal assets, net $ 25,239,062 $ 2,587,279 $ $ 27,826,341 .. *Depreciation was charged to governrrental activities as follows: Gmeral governrrent support 113,722 .. Public safety 54,119 Transportation 364,860 O1lture and recreation 56,342 .. Horre and community services 49,242 Total dep-eciation expense $ 638,285 .. 36 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 NOTE E - Bond Anticipation Notes Payable .. Bond Anticipation Notes can be used for any purpose for which bonds are authorized, and are generally accounted for in the Capital Projects Fund, since maturities cannot exceed one year. Local finance law allows the notes to be renewed, up to five years for capital purposes and up to the period of probable usefulness for assessable improvements, provided that stipulated annual reductions of principal are made. .. .. The Bond Anticipation Notes outstanding as of December 31, 2007, are as follows: .. AM:>UNT .. OUfSTANDING ORIGINAL ORIGINAL AT ISSUE MATURUY INDREST AM:>UNT DFCEMBER31, .. PURPOSE DATE DATE RATE OF ISSUE 2007 .. Master PIan/Tech. 08/12/03 05/02/08 4.25% 175,000 35,000 Landfill 08/11/04 05/02/08 4.25% 420,000 362,719 Revaluation 06/02/05 05/02/08 4.25% 575,000 345,000 .. Master PIan/Tech. 12/08/05 05/02/08 4.25% 75,000 56,000 Landfill 08/10/06 05/02/08 4.25% 566,900 566,900 Landfill 08/10/05 05/02/08 4.25% 430,368 392,381 liIIIt Town Vehicles 06/02/05 05/02/08 4.25% 47,000 24,000 Camwath 08/09/07 05/02/08 4.25% 600,000 600,000 .. Sul:total 2,889,268 2,382,000 Road Recon 11/08/07 05/02/08 3.300/0 450,000 450,000 liIIIt Highway Resurface 11/08/07 05/02/08 3.300/0 525,000 525,000 Sul:total 975,000 975,000 liIIIt laws uit Settlerrent 12/02/07 05/02/08 3.15% 300,000 300,000 .. IDTALS $ 4,164,268 $ 3,657,000 .. .. 37 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 NOTE E - Bond Anticipation Notes Payable (Continued) .. Changes in Bond Anticipation Notes Payable as of December 31,2007, are as follows: .. .. BALANCE BALANCE JANUARY 1, NDV RE-FlNANCFI DFCEMB1R31, PURPOSE 2007 ISSUFB PAYMFNTS 2007 Various Purposes $ 2,105,268 $ 1,750,000 $ (648,268) $ 3,207,000 Highway 3,348,200 450,000 (3,348,200) 450,000 Sewer 250,000 (250,000) Water 7,792,350 740,000 (8,532,350) TOT~ $ 13,495,818 $ 2,940,000 $ (12,778,818) $ 3,657,000 .. 11M .. .. .. .. .. 11M 11M .. - - 38 - . . TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) .. DECEMBER 31..2007 NOTE F - Lon2-Term Liabilities .. Serial Bonds 1. Serial Bonds may be issued for any object or purpose for which a period of probable usefulness .. has been established. The Serial Bonds Payable, as of December 31,2007, are as follows: .. AMOUNT OUfSTANDING ... ORIGINAL FINAL ORIGINAL AT ISSUE MATURITY IN'I1!REST AMOUNT DECEMBER 31, .. PURPOSE DATE DATE RATE OF ISSUE 2007 Sewer - Tn-Municipal 11/12/92 09/15/12 5.80%-6.65% $ 6,060,000 $ 1,830,000 .. Sewer - Tn-Municipal 03/14/02 04/15/21 1.21%-4.98% 9,836,556 7,200,000 Sewer - Tn-Municipal 11/26/02 05/15/15 3.18%-5.99<'10 8,519,786 3,765,000 Sewer - Tn-Municipal 06/01/95 11/15/15 3.70%-5.55% 2,610,054 1,220,000 . Water - Fleetwood 07/30/98 10/15/18 3.70%-5.15% 510,000 320,000 G-eystone Property . Purchase 10/01/00 10/01/20 4.75%-6.50% 2,085,000 1,585,000 Emergency Services Building 06/01/95 11/15/15 3.70%-5.55% 1,275,000 760,000 .. Water 452,732 172,200 Sewer 288,876 115,500 Drainage 1,253,392 492,300 .. 10/02/01 08/15/11 3.77% 1,995,000 780,000 Water 564,000 496,689 .. Sewer 905,000 796,996 Lighting 785,000 691,315 02/25/03 03/01/23 4.00%-4.50% 2,254,000 1,985,000 .. Oen eral 442,500 442,500 Water/Sewer 8,674,300 8,674,300 .. Road Reconstruction 1,974,800 1,974,800 Equipment 488,400 488,400 08/01/07 08/01/27 4.00%-5.00% 11,580,000 11,580,000 ... TOTALS $ 46,725,396 $ 31,025,000 .. 39 ... . ... TOWN OF WAPPINGER, NEW YORK III NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2007 ... NOTE F - Lone:- Term Liabilities (Continued) 2. Chane:es iIIilI The changes in the Town's indebtedness during the year ended December 31, 2007, are summarized as follows: iIIilI BALANCE BAlANCE AMOUNTS JANUARY 1, DK:EV1B:ER31, DUEWIIHIN .. 2007 INCREASE IDHRFASD 2007 ONEYFAR Serial Bonds Note F.l $ 21,275,000 $ 11,580,000 $ (1,830,000) $ 31,025,000 $ 2,200,000 .. Compensated Absences Note A.8 176,250 52,652 228,902 Landfill Qosure and Post .. Post Costs Note J 429,398 (68,196) 350,274 10,928 Judgerrent & Oaims .. Note 1.1 80,000 80,000 TOTALS $ 21,960,648 $ 11,632,652 $ (1,898,196) $ 31,684,176 $ 2,210,928 ... 3. Debt Service Reauirements .. The annual requirements to amortize bonded debt, as of December 31, 2007, are as follows: .. YEAR ENDING DECEMBFR31. PRINCIPAL ~T TOTAL 2008 2,200,000 1,409,728 3,609,728 2009 2,260,000 1,311,597 3,571,597 2010 2,325,000 1,207,333 3,532,333 2011 2,385,000 1,097,150 3,482,150 2012 2,270,000 981,664 3,251,664 2013-2017 8,215,000 3,478,337 11,693,337 2018-2022 6,295,000 1,789,133 8,084,133 2023-2027 3,525,000 772,521 4,297,521 2028-2029 1,550,000 99,452 1,649,452 TOTAlS $ 31,025,000 $ 12,146,915 $ 43,171,915 .. .. .. III iIIilI 40 .. .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 NOTE G - Operatin2: Leases .. The Town is committed under various leases for office equipment and communication equipment. These leases are considered for accounting purposes to be operating leases. Lease ... expenditures for the year ended December 31, 2007 amounted to $47,099. At December 31, 2007, the approximate annual operating lease commitments, subject to appropriation of funds, were as follows: ... YEAR ENDING DECEMBER 31. OPERATING LEASES .. .. 2008 2009 2010 2011 45,552 39,100 21,037 3,965 109,654 .. Total minimum lease payments $ .. NOTE H - Deficit Fund Balances .. Certain Capital Projects had fund equity deficits at the end of the year. Certain of those deficits arose through the funding of expenditures by issuing bond anticipation notes. As these notes are paid, revenue will be recognized and the deficits will be eliminated. There were six such capital projects with accumulated fund equity deficits totaling $2,840,067. In addition, there were four capital projects with accumulated fund equity deficits totaling $109,559, whose expenditures were funded by loans from other funds. .. .. NOTE I - Commitments and Contin2:ent Liabilities 1. Lawsuits .. .. The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of the majority of these cases and lawsuits, as determined by the Town Attorney, should not result in material unfavorable settlements. The Town has recorded an estimated liability amounting to $80,000 as Judgment and Claims, representing possible future settlements on tax certiorari cases. ... ... 41 ... .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2007 NOTE I - Commitments and Contin2ent Liabilities (Continued) .. 2. Tri-Municipal Sewer Commission .. As a result of a consent judgment signed between the Town and the New York State Department of Environmental Conservation, regarding alleged environmental violations, the Town was required to fund construction of a sewer line to the Tri-Municipal Sewer Treatment Plant, plus a one million gallon expansion of said plant. The plant is owned and operated by the Tri- Municipal Sewer Commission, made up of representatives of the Town of Poughkeepsie and the Village of Wappingers Falls. The Town, therefore, does not have ownership rights, nor does it have voting rights on the Commission's governing board. .. .. Subsequently, in January 1999, the Town Board authorized the Phase 3A Sewer Improvement Project to further expand the Commission's sewage treatment facility, from 2.4 million gallon per day capacity to 3.4 million gallon per day capacity, the costs of which were also to be funded by the Town. .. .. Funding for these projects has been provided by the issuance of bond anticipation notes and serial bonds. Currently there is one bond anticipation note in the amount of $125,000 outstanding and five serial bond issues outstanding, with an original issue total of $27,931,400 and a current total of $14,812,000. Debt service is provided by the residents of two sewer districts. .. .. 3. Central Wappin2er Water Improvement Area 99-2R In February 2001, the Town Board adopted a Bond Resolution authorizing the issuance of $8,590,000 in serial bonds to pay the costs of water improvement. As of December 31, 2007, the Town has issued $8,490,000 of this authorization in bonds and notes to pay for the costs of aforesaid project. In August 2007, the Town issued $7,380,000 in serial bonds as permanent financing. The current outstanding balance is $7,380,000. The costs incurred on the project amounted to $8,075,246, as of December 31,2007. .. .. 4. Authorized Debt .. .. As of December 31, 2007, the Town has authorized, but not issued, the following new debt: Authorization Authorized Un-issued PURPOSE Date Amount Amount Refunding Bonds 02/01/99 $ 4,700,000 $ 1,430,000 Central Wappinger Water 02/12/01 8,590,000 100,000 Road Improvement OS/27/03 3,300,000 1,220,000 Computer Hardware and So ftware 03/12/03 550,000 200,000 TOTALS $ 17,140,000 $ 2,950,000 .. .. .. 42 .. IlilIlI IlilIlI .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 NOTE J - Municipal Landiills .. 1. Castle Point LandfIn IlilIlI 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 $92,883. The Town has recorded the long term liability of $88,460 and short term liability of $4,423 in the Statement of Net Assets. 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 2007. The future costs may be higher due to inflation, changes in technology or subsequent changes in regulations. .. .. IlilIlI 2. Pou2hkeepsie-Wappin2ers-LaGran2e Joint Landiill .. 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 Wappinger, New York. All costs associated with monitoring are recognized as incurred. The Town's share of monitoring costs, for the year ended December 31, 2007, amounted to $2,771. .. IlilIlI ... The following is a summary of unaudited financial information at December 31, 2007, 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: III III Total Assets $ 227,972 Total Liabilities $ Total Venture Equity $ 227,972 Total Revenues $ 1,821,702 Total Expenditures $ 2,571,477 .. .. During 2002, violations were documented at 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 will be borne proportionately by each municipality: the Town of Wappinger's share is 14.1728% or $1,417,280. The Town issued $1,425,368 ... .. 43 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2007 NOTE J - Municipal Landfills (Continued) .. .. in bond anticipation notes to finance its share. Currently $1,322,000is outstanding on these notes. In 2007 the Town received $164,000 as its share of a $2,000,000 grant received through the NYS DEC LCSAP program. .. Post closure and monitoring costs, which will commence in 2008 and continue for 30 years, are estimated to amount to $1,893,200, with the Town's share being $268,319. .. .. NOTE K - Subseauent Events The Town has issued the following new debt: ISSUE MATURIIY TYPE DATE DATE Rate PURPOSE AMOUNT .. .. Bond Anticipation Note* 05/01/08 *New funds portion of note Bond Anticipation Note 10/14/08 04/03/09 2.75% .. Highway $ 450,000 $ 209,000 659,000 04/03/09 3.86% Highway .. Note L - New Reportine Standard .. In June 2004, the Governmental Accounting Standards Board (GASB) issued Statement 45 Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions. This Statement establishes certain new financial reporting requirements for state and local governments throughout the United States. When implemented, it will require the reporting of liabilities pertaining to post employment benefits earned by employees on a current basis. The Town is required to implement this standard for the year ending December 31, 2008. The Town is in the process of implementing the provisions of GASB Statement 45. The implementation ofGASB Statement 45 will have a substantive effect on the Town's government wide financial position. However, the Town does not believe that it will have a significant effect on its governmental (fund) financial position, upon which the Town's budgets are based and taxes are raised. .. .. .. .. - 44 .. ... .. III .. REQUIRED SUPPLEMENTAL INFORMATION .. .. ... .. .. ... .. .. III .. III .. - .. .. .. EXHIBIT I TOWN OF WAPPINGER, NEW YORK BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31. 2007 .. GENERAL FUND VARIANCE .. ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) REVENUES Real property taxes $1,509,351 $1,509,351 $1,509,351 $ .. Real property tax items 70,500 70,500 122,806 52,306 Non property tax items 1,127,934 1,127,934 1,277,002 149,068 Departmental income 188,500 188,500 229,422 40,922 .. Intergovernmental charges Use of money and property 198,000 198,000 254,249 56,249 Licenses and permits 204,600 204,600 268,928 64,328 .. Fines and forfeitures 137,500 137,500 115,190 (22,310) Sale of property and compensation for loss 6,680 6,680 Miscellaneous local sources 205,725 205,725 State aid 1,693,500 1,693,500 1,480,672 .. Federal aid 8,691 8,691 Total revenues 5,129,885 5,129,885 5,478,716 561,659 .. Appropriation of prior year's fund balance 226,134 297,491 (297,491) Total revenues and appropriation of prior year's fund balance 5,356,019 5,427,376 5,478,716 264,168 .. EXPENDITURES AND ENCUMBRANCES General Government Support 1,750,467 1,798,286 2,335,246 (536,960) - Public safety 483,686 456,852 466,032 (9,180) Health 2,500 3,800 3,860 (60) Transportation 236,142 227,142 231,976 (4,834) Economic assistance & opportunity 25,850 27,483 28,227 (744) .. Culture and recreation 784,487 774,818 735,941 38,877 Home and community service 484,228 557,583 553,287 4,296 Employee benefits 692,271 681,774 684,767 (2,993) .. Debt service 896,388 899,638 897,729 1,909 Total expenditures and encumbrances 5,356,019 5,427,376 5,937,066 (509,690) III Excess (deficiency) of revenues and appropriation of prior year's fund balance over (under) expenditures and encumbrances (458,349) (245,522) III Other financing sources (uses) Operating transfers in III 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, encumbrances $ $ $ (458,349) $ (245,522) .. The accompanying Notes to the Financial Statements III should be read in conjunction with these Financial Statements. 45 - - - HIGHWAY FUND - VARIANCE ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) . REVENUES Rea] property taxes $ 1,786,529 $ 1,786,529 $ 1,786,529 $ Rea] property tax items Non property tax items 285,000 285,000 285,000 . Departmental income Intergovernrnenta] charges 1,500 1,500 2,343 843 Use of money and property 10,000 10,000 35,339 25,339 - Licenses and permits Fines and forfeitures Sale of property and compensation for loss 1,024 1,024 Miscellaneous local sources 450 450 . State aid 104,000 104,000 186,234 82,234 Federa] aid 8,685 8,685 .. Total revenues 2,187,029 2,187,029 2,305,604 118,575 Appropriation of prior year's fund balance Total revenues and appropriation of . prior year's fund balance 2,187,029 2,187,029 2,305,604 118,575 EXPENDITURES AND ENCUMBRANCES - General Government Support 48,127 48,127 42,852 5,275 Public safety Health .. Transportation 1,566,636 1,566,636 1,468,663 97,973 Economic assistance & opportunity Culture and recreation Home and community service - Emp]oyee benefits 485,475 485,475 477,169 8,306 Debt service 190,849 190,849 162,364 28,485 - Total expenditures and encumbrances 2,291,087 2,291,087 2,151,048 140,039 Excess (deficiency) of revenues and appropriation of prior year's fund balance over (under) . expenditures and encumbrances (104,058) (104,058) 154,556 258,614 Other financing sources (uses) . Operating transfers in 104,058 104,058 47,484 (56,574) Operating transfers out (28,430) (28,430) - Total other financing sources 104,058 104,058 19,054 (85,004) Excess (deficiency) of revenues and appropriation of prior year's fund balance and other sources ... over (under) expenditures, encumbrances $ $ $ 173,610 $ 173,610 - 46 .. .. .. WATER FUND VARIANCE .. ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) REVENUES Real property taxes $ 633,238 $ 633,238 $ 633,238 $ .. Real property tax items Non property tax items Departmental income 781,000 781,000 929,950 148,950 .. Intergovernmental charges Use of money and property 5,530 5,530 17,475 11,945 Licenses and permits .. Fines and forfeitures Sale of property and compensation for loss 4,480 4,480 Miscellaneous local sources State aid 3,603 3,603 .. Federal aid 11,322 11,322 Total revenues 1,419,768 1,419,768 1,600,068 180,300 .. Appropriation of prior year's fund balance 102,781 102,781 17,420 (85,361 ) Total revenues and appropriation of prior year's fund balance 1,522,549 1,522,549 1,617,488 94,939 .. EXPENDITURES AND ENCUMBRANCES General GovemmentSupport 8,830 48,246 (39,416) .. Public safety Health Transportation - Economic assistance & opportunity Culture and recreation Home and community service 869,932 861,102 920,363 (59,261) Employee benefits 7,640 7,640 5,103 2,537 .. Debt service 644,977 644,977 641,160 3,817 Total expenditures and encumbrances 1,522,549 1,522,549 1,614,872 (92,323) .. Excess (deficiency) of revenues and appropriation of prior year's fund balance over (under) expenditures and encumbrances 2,616 2,616 .. 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, encumbrances $ $ $ 2,616 $ 2,616 .. .. 47 .. .. .. SEWER FUND .. VARIANCE ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) .. REVENUES Real property taxes $1,468,219 $1,468,219 $1,468,219 $ Real property tax items Non property tax items .. Departmental income 1,436,357 1,437,357 1,510,284 72,927 Intergovernmental charges Use of money and property 389,975 389,975 419,073 29,098 .. Licenses and permits Fines and forfeitures Sale of property and compensation for loss Miscellaneous local sources liliiii State aid Federal aid 9,657 9,657 .. Total revenues 3,294,551 3,295,551 3,407,233 111,682 Appropriation of prior year's fund balance 585,733 585,835 362,749 (223,086) Total revenues and appropriation of .. prior year's fund balance 3,880,284 3,881,386 3,769,982 (111,404) EXPENDITURES AND ENCUMBRANCES .. General Government Support Public safety Health .. Transportation Economic assistance & opportunity Culture and recreation Home and community service 1,574,578 1,574,578 1,603,199 (28,621 ) .. Employee benefits 7,789 8,891 1,802 7,089 Debt service 2,297,917 2,297,917 2,181,907 116,010 .. Total expenditures and encumbrances 3,880,284 3,881,386 3,786,908 94,478 Excess (deficiency) of revenues and appropriation of prior year's fund balance over (under) .. expenditures and encumbrances (16,926) (16,926) Other financing sources (uses) liliiii Operating transfers in 16,926 16,926 Operating transfers out .. Total other financing sources 16,926 16,926 Excess (deficiency) of revenues and appropriation of prior year's fund balance and other sources liliiii over (under) expenditures, encumbrances $ $ $ 0 $ 0 - 48 liliiii III .. III III OTHER SUPPLEMENTAL INFORMATION III III III III .. III .. III III .. .. .. - .. III .. EXHffiIT II .. TOWN OF WAPPINGER, NEW YORK COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS DECEMBER 31, 2007 .. .. LIGHT FUND MISC AMBULANCE FUND TOTAL NON-MAJOR GOVERNMENTAL FUNDS ASSETS .. .. Cash and cash equivalents Receivables: Charges for services Due from other funds $ 16,718 $ 70,989 $ 87,707 83 83 Total assets $ 16,718 $ 71,072 $ 87,790 .. .. LIABILITIES AND FUND EQUITY .. LIABILITIES Accounts payable $ 3,133 $ 39 $ 3,172 Accrued liabilities 54 $ 54 .. Due to other funds. 3,000 3,000 Total liabilities 6,133 93 6,226 .. FUND BALANCE Fund balance (deficit): Reserved for: . Prep aids and Inventory Unreserved: Designated: .. Subsequent year's expenditures 10,585 71,033 81,618 Undesignated (54) (54) Total fund balance 10,585 70,979 81 ,564 . Total liabilities and fund balance $ 16,718 $ 71,072 $ 87,790 .. . .. .. See independent auditor's report 49 - .. EXHIBIT III TOWN OF WAPPINGER, NEW YORK ,; COMBINING STATEMENT OF REVENUES, EXPENDITURES AND IrilII CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2007 IiIIlll TOTAL ... MISC NON-MAJOR LIGHT AMBULANCE GOVERMENTAL FUND FUND FUNDS .. REVENUES Property taxes $ 39,331 $ 399,095 $ 438,426 Property tax items 52 52 .. Use of money and property 1,004 11,065 12,069 .. Total revenues 40,335 410,212 450,547 EXPENDITURES .. Health 409,583 409,583 Transportation 35,977 35,977 .. Employee benefits 1,563 1,563 .. Total expenditures 35,977 411,146 447,123 Excess (deficiency) of revenues over expenditures 4,358 (934) 3,424 .. Other financing sources: Operating transfers in .. Operating transfers out Total other financing sources .. Excess (deficiency) of revenue and other sources over expenditures and other uses 4,358 (934) 3,424 .. Fund Balance, December 31,2006 6,227 71,913 78,140 .. Fund Balance, December 31, 2007 $ 10,585 $ 70,979 $ 81,564 .. See independent auditor's report 50 .. .. -