1995-12-31
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TOWN OF WAPPINGER, NEW YORK
FINANCIAL STATEMENTS
AS OF AND FOR mE YEAR ENDED
DECEMBER 31. 1995
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TOWN OF WAPPINGER, NEW YORK
TABLE OF CONTENTS
DECEMBER 31. 1995
DESCRIPTION:
PAGElS)
Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1
Independent Auditors' Report on Internal Control
Structure Based on an Audit of General Purpose
Financial Statements Performed in Accordance
with Government Auditing Standards ...................................... .2-3
Independent Auditors' Report on Compliance With
Laws and Regulations Based on an Audit of
General Purpose Financial Statements Performed in
Accordance With Government Auditing Standards ...............................4-5
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet - All Fund Types and
Account Groups ................................................... IJ-7
Combined Statements of Revenues, ExPenditures and
Changes in Fund Equity - All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . . . 8-9
Combined Statements of Revenues, Expenditures and
Changes in Fund Equity - Budget and Actual -
General and Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10-11
Notes to the Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12-27
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Sedore,
0' Sullivan,
Letterio
& Barschi
Certified Public Accountants. P.C.
INDEPENDENT AUDITORS' REPORT
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the accompanying general purpose fmancial statements of the Town of
Wappinger, New York, as of December 31, 1995, and for the year then ended as listed in the
foregoing Table of Contents. These general purpose fmancial statements are the responsibility
of the Town of Wappinger, New York, management. Our responsibility is to express an opinion
on these general purpose financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards, and
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 general purpose financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and disclosures in the
general purpose financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall general
purpose financial statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the general purpose financial statements referred to above present fairly, in all
material respects, the financial position of the Town of Wappinger, New York, as of December
31, 1995, and the results of its operations for the year then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report dated June 14,
1996 on our consideration of Town of Wappinger, New York internal control structure and a
~ep rt dated June 1~, 1 96 on its com Pli~With la. ws and~e ulations.
_/~.. d/'. '~'
~r A'J I 'V
Wappingers Falls, New York
June 14, 1996
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62 East Main Street. P.O. Box 918 . Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 · Beacon (914) 83HJ542/fax (914) 831-5114 . Newburgh (914) 565-1373
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Sedore,
0' Sullivan,
Letterio
& Barschi
C6rlIfIed Public Accountants. P.C.
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
STRUCTURE BASED ON AN AUDIT OF GENERAL PURPOSE
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the general purpose financial statements of the Town of Wappinger, New York,
as of and for the year ended December 31, 1995, and have issued our report thereon dated June
14, 1996.
We have conducted our audit in accordance with generally accepted auditing standards, and
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 general purpose financial statements are free of material misstatement.
The management of the Town of Wappinger, New York, is responsible for establishing and
maintaining an internal control structure. In fulftlling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related costs of
internal control structure policies and procedures. The objectives of an internal control structure
are to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, and that transactions are executed
in accordance with management's authorization and recorded properly to permit the preparation
of general purpose financial statements in accordance with generally accepted accounting
principles. Because of inherent limitations in any internal control structure, errors or
irregularities may nevertheless occur and not be detected. Also, projection of any evaluation
of the structure to future periods is subject to the risk that procedures may become inadequate
because of changes in conditions or that the effectiveness of the design and operation of policies
and procedures may deteriorate.
In planning and performing our audit of the general purpose financial statements of the Town
of Wappinger, New York, for the year ended December 31, 1995, we considered its internal
control structure in order to determine our auditing procedures for the purpose of expressing our
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62 East Main Street. P.O. Box918. Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-0542/fax (914) 831-5114. Newburgh (914) 565-1373
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opinion on the general purpose financial statements and not to provide assurance on the internal
control structure. With respect to the internal control structure, we obtained an understanding
of the design of relevant policies and procedures and whether they have been placed in
operation, and we assessed control risk in order to determine our auditing procedures for the
purpose of expressing our opinion on the general purpose fmancial statements and not to provide
an opinion on the internal control structure. Accordingly, we do not express such an opinion.
We noted certain matters, which are reported to the management of the Town of Wappinger,
New York in a separate letter dated June 14, 1996, involving the internal control structure and
its operation that we consider to be reportable conditions under standards established by the
American Institute of Certified Public Accountants. Reportable conditions involve matters
coming to our attention relating to significant deficiencies in the design or operation of the
internal control structure that, in our judgment, could adversely affect the entity's ability 'to
record, process, summarize, and report fmancial data consistent with the assertions of
management in the general purpose financial statements.
A material weakness is a reportable condition in which the design or operation of one or more
of the internal control structure elements does not reduce to a relatively low level the risk that
errors or irregularities in amounts that would be material in relation to the general purpose
financial statements being audited may occur and not be detected within a timely period by
employees in the normal course of performing their assigned functions.
Our consideration of the internal control structure would not necessarily disclose all matters in
the internal control structure that might be reportable conditions and, accordingly, would not
necessarily disclose all reportable conditions that are also considered to be material weaknesses
as defined above. However, we believe none of the reportable conditions described above is. a
material weakness.
We noted other matters involving the internal control structure and its operation that we have
reported to the management of the Town of Wappinger, New York, in a separate letter dated
June 14, 1996.
This report is intended for the information of the Supervisor, Town Board, and Management.
However, this report is a matter of public record and its distribution is not limited.
~&~rd~~/~Y~~
Wappingers Falls, New York
June 14, 1996
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Sedore,
0' Sullivan,
Letterio
& Barschi
C6rlifled Public Accountants. P.C.
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
LAWS AND REGULATIONS BASED ON AN AUDIT OF GENERAL
PURPOSE FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE
WITH (;9VERNMENT AUDITING STANDARDS
To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
Wappingers Falls, New York 12590
We have audited the general purpose financial statements of the Town of Wappinger, New
York, as of and for the year ended December 31, 1995, and have issued our report thereon
dated June 14, 1996.
We conducted our audit in accordance with generally accepted auditing standards, and
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 general purpose financial statements are free of material misstatement.
Compliance with laws, regulations, contracts and grants applicable to the Town of
Wappinger, New York, is the responsibility of the Town of Wappinger, New York's
management. As part of obtaining reasonable assurance about whether the financial
statements are free of material misstatement, we performed tests of the Town of Wappinger's
compliance with certain provisions of laws, regulations, contracts and grants. However, the
objective of our audit of the general purpose financial statements was not to provide an
opinion on overall compliance with such provisions. Accordingly, we do not express such an
opinion.
The results of our tests disclosed no instances of noncompliance that are required to be
reported under Government Auditing Standards.
However, we noted certain immaterial instances of noncompliance that we have reported to
the management of the Town of Wappinger, New York in a separate letter dated June 14,
1996.
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62 East Main Street. P.O. Box 918. Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-D542/fax (914) 831-5114 . Newburgh (914) 565-1373
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This report is intended for the information of the Supervisor, Town Board, and Management.
However, this report is a matter of public record and its distribution is not limited.
-.l~, (]/~ ' ~ v6'~
Wappingers Falls, New York
June 14, 1996
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TOWN OF WAPPINGERt..,NEW YORK
COMBINED BALANC.tj SHEET -
ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31. 1995
The accompanying Notes to the Financial Statements are an integral part of this financial statement.
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FIDUCIARY
FUND TYPE
TRUST
AND AGENCY
$337,160
ACCOUNT GROUPS
GENERAL
GENERAL LONG-TERM
FIXED ASSETS DEBT
TOTAL
(MEMORANDUM
ONLy) NOTE A.IS
$ 6,450,861
740,161
3,595,800
445,784
4,045
46,666
16,450,261
25.357.559
~53.091.137
$
$
46,666
16,450,261
25.357.559
~25.357.559
$383.826
~16.450.261
$
$
$
258,505
$ 135,622
6,430
72,388
258,505
445,784
383,826
6,081
383,826
II
550,000
24.549.054
25.357.559
2,798,000
550,000
24.549.054
29.205.690
..
383.826
16,450,261 16,450,261
2,738,041
1,527,738
3.169.407
- 16.450.261 23.885.447
-
~383.826 $16.450.261 ~25.357.559 $53.091.137
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TOWN OF WAPPINGER NEW YORK
COMBINED STATEMENTS OF REV~kEXPENDITURES
AND CHANGES IN FUND EQUITY _
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31. 1995
GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
REVENUE PRO.JECfS
$3,407,472 $
37
3,250
1,561,799
655 4,554
2,208 11,324
495.346 108.336
3.213.435 5.812.225
1,180,959 15,143
185,591
196,700
118,972 1,244,235
2,390
518,305
282,439 1,517,061
268,213 222,637
551.131 2.234.145
3.108.000 5.429.921
105.435 382.304
135,285
REVENUES
Real Property Taxes - Note A.13
Real Property Tax Items - Note A.13
Non-Property Tax Items
Departmental Income
Intergovernmental Charges
Uses of Money and Property - Note A.8
Licenses and Permits
Fines and Forfeitures
Sale of Property and
Compensation for Loss
Miscellaneous Local Sources
State Aid
GENERAL
$1,307,538
59,032
842,718
172,309
1,995
162,776
65,438
103,420
TOTAL REVENUES
EXPENDITURES
General Government Support
Public Safety
Health
Transportation
Economic Assistance and Opportunity
Culture and Recreation
Home and Community Service
Employee Benefits
Debt Service - Notes A.14, E and F
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Operating Transfers Out
Debt Redeemed From Appropriations
Proceeds from Serial Bonds
TOTAL OTHER FINANCING SOURCES (USES)
135.285
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES 240.720
FUND EQUITY, JANUARY 1, 1995
FUND EQUITY, DECEMBER 31,1995
2.299.128
$2.539.848
715,453
382.304
1.110.772
$1.493.076
146,924
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146.924
1,436,345
6,927,889
. 8.364.234
(8.217.310)
(135,285)
117,000
, 2.610.054
2.591. 769
(5.625.541)
9.027.803
$ 3.402.262
The accompanying Notes to the Financial Statements are an integral part of these financial statements.
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(MEMORANDUM
ONLy) NOTE A.IS
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59,069
845,968
L 1,734,108
1,995
1,025,153
65,438
L 103,420
5,209
13,532
L 603.682
9.172.584
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2,632,447
l 185,591
196,700
1,363,207
2,390
l 518,305
8,727,389
490,850
2.785.276
L 16.902.155
L (7 . 729 .571)
l 135,285
(135,285)
117,000
2.610.054
L 2.727.054
L (5 .002.517>
12.437.703
L $ 7.435.186
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TOWN OF WAPPINGER NEW YORK
COMBINED STATEMENTS OF REVENUEs EXPENDITURES
AND CHANGES IN FUND EOUlTY - BUDGET AND ACTUAL _
GENERAL AND SPECIAL REVENUE FUNDS
. FOR THE YEAR ENDED DECEMBER 31. 1995
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GENERAL FUND
VARIANCE -
FAVORABLE
REVENUES BUDGET ACTUAL ((JNF A VORABLEl
Real Property Taxes $1,307,538 $1,307,538 $
Real Property Tax Items 50,000 59,032 9,032
Non-Prope~ Tax Items 560,000 842,718 282,718
Departmen Income 147,929 172,309 24,380
Intergovernmental Charges 1,995 1,995
Uses of Mone~ and Property 70,129 162,776 92,647
Licenses and ermits 35,100 65,438 30,338
Fines and Forfeitures 115,500 103,420 (12,080)
Sale of Property and
Compensation for Loss 655 655
Miscellaneous Local Sources 1,500 2,208 708
State Aid 351.133 495.346 144.213
TOTAL REVENUES 2.640.824 3.213.435 572.611
EXPENDITURES
General Government Support 1,344,768 1,180,959 163,809
Public Safety 200,532 185,591 14,941
Health - - -
Transportation 119,762 118,972 790
Economic Assistance and Opportunity 8,600 2,390 6,210
Culture and Recreation 572,144 518,305 53,839
Home and Community Service 398,318 282,439 115,879
Employee Benefits 325,972 268,213 57,759
Debt Service 555.246 551.131 4.115
TOTAL EXPENDITURES 3.525.342 3.108.000 417.342
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES (884.518) 105.435 989.953
OTHER FINANCING SOURCES (USES):
Operating Transfers In 135.285 135 .285
TOTAL OTHER FINANCING
SOURCES (USES) 135 .285 135.285
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER) ,(,$884.518) 240,720 $1.125.238
EXPENDITURES AND OTHER USES
FUND EQUITY, JANUARY 1,1995 2,299,128
Reconciliation to GAAP - Note A.6
FUND EQUITY, DECEMBER 31,1995 $2.539.848
The accompanying Notes to the Financial Statements are an integral part of these financial statements.
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SPECIAL REVENUE FUND (NOTE A.6l
VARIANCE -
FAVORABLE
BUDGET ACTUAL WNFA VORABLE)
$3,407,472 $3,407,472 $
- 37 37
2,250 3,250 1,000
1,461,516 1,531,810 70,294
-
60,467 715,413 654,946
1,000 4,554 3,554
- 11,324 11,324
108.336 108.336
5.041.041 5.782.196 741.155
15,807 15,143 664
- -
230,647 196,700 33,947
1,452,221 1,244,235 207,986
1,554,972 1,487,072 67,900
283,304 222,637 60,667
2.296.605 2.234.145 62.460
5.833.556 5.399.932 433.624
(792.515) 382.264 1.174.779
$(792.515)
382,264
1,110,772
40
$1.493.076
~1.174.779
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31. 1995
NOTE A - Summary of Accountine Policies
The Town of Wappinger, New York (lithe 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.
The Town provides the following services: highway maintenance, water, sewer, planning,
zoning, building and safety inspection, lighting, and culture and recreation.
The financial statements of the Town have been prepared in conformity with generally
accepted accounting principles (GAAP), as applied to government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting.principles, some of which are as follows:
1. The Reporting Entity
The Town, for financial purposes, includes all of the funds and account groups
relevant to the operations of the Town of Wappinger, New York. The financial
statements include organizations, functions 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.
2. Fund Accounting
The accounts of the Town are organized on the basis of funds or account groups,
each of which is considered to be a separate accounting entity. The operations of
each fund are accounted for by providing a separate set of self-balancing
accounts, which are comprised of each fund's assets, liabilities, fund equity,
revenues and expenditures. Government resources are allocated to and for
individual funds based upon the purposes for which they are to be spent and the
means by which spending activities are controlled. The various funds are
grouped, in the financial statements in this report, into fund types and two
account groups, as follows:
GOVERNMENTAL FUND TYPES
The accounting and reporting treatment applied to assets and liabilities
associated with a fund are determined by its measurement focus. All
governmental fund types are accounted for on a spending "fmancial flow"
measurement focus. This means that only current assets and current
liabilities are generally included on their balance sheets. Their reported fund
balance (net current assets) is considered a measure of "available
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TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Continued)
spendable resources." Governmental fund operating statements present
increases (revenues and other fmancing sources) and decreases (expenditures
and other financing uses) in net current assets. Accordingly, they are said to
present a summary of sources and uses of "available spendable resources"
during a period.
General Fund
The 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.
Special Revenue Fund
Special Revenue Fund is used to account for the proceeds of specific
revenue sources (other than special assessments, expendable trust or major
capital projects) that are legally restricted to expenditures for specified
purposes.
Capital Projects Fund
This fund is used to account for financial resources to be used for the
acquisition and construction of major capital facilities.
FIDUCIARY FUND TYPE
Trust and Agency Fund
Trust and Agency Fund is used to account for assets held by the Town in a
trustee capacity, or as an agent for individuals, other governments, and/or
other funds. These include Expendable Trust and Agency Funds.
Expendable Trusts are accounted for in essentially the same manner as
governmental funds. Agency funds are custodial in nature (assets equal
liabilities), and do not involve measurement of results of operations.
ACCOUNT GROUPS
Account groups are used to establish accounting control and accountability
for General Fixed Assets and General Long-Term Debt. The two account
groups are not "funds." They are concerned only with the measurement of
financial position. They are not involved with the measurement of the
results of operations.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Continued)
General Fixed Assets Account Group
Property, plant and equipment used in governmental fund type operations
are accounted for in the General Fixed Assets Account Group, rather than
in governmental funds. No depreciation has been provided on such
property, plant and equipment.
All property, plant and . equipment are valued at historical cost or estimated
historical cost if actual historical cost is not available. Donated property,
plant and equipment are valued at their estimated fair value on the date
donated. Interest costs incurred during construction has not been
capitalized, however.
The Town has adopted the accounting policy of not capitalizing
"infrastructure" general fixed assets (roads, bridges, curbs and gutters,
streets and sidewalks, drainage system, lighting systems and simil~ assets)
that are immovable and of value only to the Town.
General Long-Term Debt Account Group
Long-term liabilities expected to be financed from governmental fund types
are accounted for in the General Long-Term Debt Account Group, not in
the governmental funds. They are recorded at the par value of the principal
amount. No liability is recorded for interest payable to maturity.
Because of their spending measurement focus, expenditure recognition for
governmental fund types is limited to exclude amounts represented by non-
current liabilities. Since they do not affect net current assets, such long-
term amounts are not recognized as governmental fund type expenditures or
fund liabilities. They are instead reported as liabilities in the General Long-
Term Debt Account Group.
3. Basis of Accounting
Basis of accounting refers to when revenues and expenditures are recognized in the
accounts, and reported in the financial statements. Basis of accounting relates to
the timing of the measurements made, regardless of the measurement focus applied.
All governmental and expendable trust funds are accounted for using the "modified
accrual basis" of accounting. Their revenues are recognized when they become
measurable and available as net current assets. All major revenues are susceptible
to accrual.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Contmued)
Expenditures are generally recognized under the "modified accrual basis" of
accounting when the related fund liability is incurred. Exceptions to this general
rule include: (1) accumulated unpaid vacation, sick pay, and other employee
amounts which are not accrued; (2) principal and interest on general long-term debt
which is recognized when due; and (3) expenditures for inventory-type items which
are recognized at the time of purchase.
Expenditures for judgments and settled claims are also recognized when the related
liability is incurred, that is when the judgment has been rendered or settlement has
been reached. Unsettled claims and contingencies are recognized only if it is
probable that an asset has been impaired or a liability has been incurred and the
amount of the impairment or liability can be reasonably estimated.
4. Budgets
The Town employs a formal budgetary accounting system as a management tool.
During the year, a budget was adopted and modified by the Town Board for the
General Fund and Special Revenue Fund. However, for the Capital Projects Fund,
budgets are established at the project level and continue until the project is
completed. Unused appropriations of the annually budgeted funds lapse at the end
of the year.
5. Encumbrances
Encumbrance accounting, under which purchase orders, contracts and other
commitments for the expenditure of monies are recorded for budgetary control
purposes to reserve that portion of the applicable appropriations, is employed as a
control in. preventing over expenditure of established appropriations. Open
encumbrances are reported as reservations of fund balance since they do not
constitute expenditures or liabilities and will be honored through budget
appropriations in the subsequent year.
6. Budget and Actual Comparison
The budget and actual Comparison for Special Revenue Funds, included in the
Combined Statement of Revenues and Expenditures - Budget and Actual, reflects
budgeted and actual amounts for funds with legally authorized (appropriated)
budgets.
Certain Special Revenue Funds have not been included in the comparison because
they do not have legally authorized (appropriated) budgets. The actual activity of
these unbudgeted funds, as follows, is provided in order to reconcile to the total
combined balances of the Special Revenue Funds:
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TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Continued)
JANUARY 1,
1995 REVENUES
EXPENDITURES DECEMBER 31,
& OTHER USES 1995
Total for funds
Included in
Budget Comparison
$1.110,772
$5,782.196
$5.399.932
$1.493.036
Funds not included
in Budget Comparison
30.029
29.989
40
Total Special
Revenue Funds
~1.110.772
$5.812.225
$5.429.921
$1.493.076
7. Change in Accounting Policy
Pension Plan
As described in Note A.I0, the Town of Wappinger participates in the New York
State and Local Employees' Retirement System, the New York State and Local
Police and Fire Retirement System, and the Public Employees' Group Life Insurance
Plan (Systems). These Systems have implemented GASB Statement Number 25 for
their year ended March 31, 1995. As a result the Town of Wappinger is adopting
the provisions of GASB Statement Number 27 which is a related pronouncement.
The provisions of GASB Statement Number 27 requires that the Town make changes
in its pension disclosures. No changes are required to be made to the recording of
pension expenditures. This adoption is prior to the required date. which. for the
Town of Wappinger, would be January 1, 1998, however early implementation is
permissible.
8. 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. 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.
Market value of the repurchase agreements approximates cost plus accrued interest.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Continued)
The cash and investments of the Town at December 31, 1995, are as follows:
SPECIAL CAPITAL TRUST &
GENERAL REVENUE PROJECTS AGENCY
FUND FUND FUND FUND TOTAL
Non-Interest
Bearing Accounts $ 700 $ - $ $ - $ 700
Interest Bearing
Accounts 555,599 619,248 1,316,436 337,160 2,828,443
Repurchase
Agreements 1.438.199 625.728 1.557.791 3.621.718
TOTAL ~1.994.498 ~1.244.976 $2.874.227 $337.160 ~6.450.861
All of the Town's deposits were covered by Federal Deposit Insurance or collateralized
with securities held by a third party custodIan in the Town's name.
9. 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 accumulate unused compensated absences. However, such earned, but
unused compensated absences, must be used during their period of employment with
the Town. No payment will be m,ade upon separation from the Town's service.
In governmental and fiduciary funds, the cost of vacation and sick leave is
recognized when payments are made to employees. A long-term liability of
$258,505 of accrued vacation and sick leave at December 31, 1995, has been
recorded in the General Long-Term Debt Account. Group of Accounts, representing
the Town's commitment to fund such costs from future operations.
10. Pension Plans
Plan Description
The Town of Wappinger participates in the New York State and Local Employees'
Retirement System (ERS), 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
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CITY OF BEACON, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Cont'd):
(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, Gov.
Alfred E. Smith State Office Building, Albany, NY 12244.
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.
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
1995 Hj7
1994
1993
The Town's contributions made to the Systems were in excess of 100 percent of the
contributions required for each year. The Town has not recorded a deferred asset
for the excess contributions made since the additional funds have been applied to the
pension credits described below.
Since 1989, the System's billings have been based on Chapter 62 of the Laws of
1989 of the State of New York. This legislation requires participating employers to
make payments on a current basis, while amortizing existing unpaid amounts relating
to the System's fiscal years ending March 31, 1988 and 1989 (which otherwise were
to have been paid on June 30, 1989 and 1990, respectively) over a 17-year period,
with an 8.75% interest factor added. Local governments were given the option to
prepay this liability. The Town of Wappinger paid this liability in full in 1989.
However, during the 1990 Legislative session Chapter 210 was enacted which
required a change in funding method. This change was subsequently ruled
unconstitutional but Chapter 210 also required that any credits created by the initial
change be applied to the Chapter 62 billing change liability. Although the Town had
paid its liability as noted above, an amortization balance was created, which was
offset by the prepaid amortization credit. The Town, therefore, did not record any
net liability. In 1996, the Town elected to apply the accrued pension credits against
the amortization balance.
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CITY OF BEACON, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
SummJlry of Accounting Policies (Cont'd):
11. Deferred Compensation Plan
Employees of the Town of Wappinger may participate in a deferred compensation
plan adopted under the provisions of Internal Revenue Code Section 457 (Deferred
Compensation Plans with Respect to Service for State and Local Governments).
The deferred compensation plan is available to all employees of the Town. Under
the plan, employees may elect to defer a portion of their salaries and avoid paying
taxes on the deferred portion until the withdrawal date. The deferred compensation
amount is not available for withdrawal by employees until termination, retirement,
death, or unforeseeable emergency.
The deferred compensation plan is administered by an unrelated financial institution.
Under the terms of an IRC Section 457 deferred compensation plan, all deferred
compensation and income attributable to the investment of the deferred compensation
amounts held by the financial institution, until paid or made available to the
employees or beneficiaries, are the property of the Town subject only to the claims
of the Town's general creditors. In addition, the participants in the plan have rights
equal to those of the general creditors of the Town, and each participant's rights are
equal to his or her share of the fair market value of the plan assets. The Town
believes that it is unlikely that plan assets will be needed to satisfy claims of general
creditors that might arise.
12. Post Employment 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. Employees contribute according to a sliding scale based on years of
service.
For the year of 1995, $11,990 was paid on behalf of six retirees and recorded as
expenditures in the General and Special Revenue Funds. ,
13. 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 unpaid to the
County Commissioner of Finance.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Continued)
14. Long- Tenn Obligations
Long-Term Debt is recognized as a liability of a governmental fund when due, or
when resources have been accumulated in the debt service fund 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
reported in the General Long-Term Debt Account Group.
15. Insurance
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. Judgements 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.
16. Reserves of Fund Equity
The Town records indicate that portions of the fund equity are segregated for a
specific future use. The following details the description and amounts of the reserves
used by the Town:
TOTAL
BALANCE AT
DECEMBER 31.1995
$330,000
233.005
$563.005
A. General Fund
Reserved for Inspection Fees
Reserved for Downstream Drainage
B. Special Revenue Fund
Reserved for Encumbrances
$63.599
C. Capital Proiects Fund
Reserved for Encumbrances
$2.111.437
17. Allowance for Uncollectible Accounts
An Allowance for Uncollectible Accounts is not reflected in the Special Revenue
Fund. Past due accounts after one year are placed on the county tax rolls for
collection, and reimbursed to the Town as they are put on the tax rolls by the
County.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Summary of Accounting Policies (Continued)
18. Total Columns on Combined Statements
Total Columns on the Combined Statements - Overview are captioned
"Memorandum Only" to indicate that they are presented only to facilitate financial
analysis. Data in these columns do not present financial position, results of
operations, or changes in financial position in conformity with generally accepted
accounting principles. Such data is not comparable to a consolidation. Interfund
eliminations have not been made in the aggregation of this data.
NOTE B - Other Receivables
Other Receivables at December 31, 1995 consist of the following:
GENERAL
FUND
SPECIAL
RESERVE FUND
TOTAL
Accounts Receivable
Water Rents Receivable
Sewer Rents Receivable
$226,132
$226,132
183,141
330.888
$
183,141
330.888
TOTAL
$226.132
$514.029
$740.161
NOTE C - Interfund Receivables and Payables
The following is a summary of amounts due from and due to other funds as of December 31,
1995:
DUE TO DUE FROM
General Fund $361,541 $
Capital Projects Fund 119,243
Special Revenue Fund 84.243 326.541
TOTAL $445.784 $445.784
NOTE D - General Fixed Assets Account Group
The following is a summary of changes and adjustments in the General Fixed Assets Account
Group, for the year ended December 31, 1995:
BALANCE - BALANCE -
JANUARY 1, DECEMBER 31,
1995 ADDITIONS DELETIONS 1995
Land $ 5,106,650 $ $ $ 5,106,650
Buildings 4,395,313 1,800,000 6,195,313
Improvement Other
Than Buildings 2,775,072 111,721 2,886,793
Machinery and
Equipment 2.190.207 71.298 - 2.261.505
-
TOTAL $14.467.242 $1.983.019 L...; $16.450.261
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TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
NOTE E - Bond Anticipation Notes Payable
Bond Anticipation Notes Payable are renewed annually and are not to exceed five renewals,
except for water and sewer improvements which may be renewed for the life of the
improvement not to exceed twenty years.
The Bond Anticipation Notes outstanding as of December 31, 1995, are as follows:
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
1995
ORIGINAL
ISSUE
DATE
MATURITY
DATE
ORIGINAL
INTEREST AMOUNT OF
RATE ISSUE
PURPOSE
Water 09/17/91 07/12/96 3.0% $ 375,760 $ 307,500
Water 09/16/92 07/12/96 3.0% 30,500 25,500
Sewer 09/17/91 07/12/96 3.0% 4,000,000 1,700,000
Sewer 07/14/94 07/12/96 3.0% 375,000 375,000
Emergency
Service Bldg 07/14/95 07/12/96 3.79% 390.000 390.000
TOTAL $5.171.260 $2.798.000
NOTE F - WNG-TERM DEBT
1. Serial Bonds
The Town borrows money in order to acquire or construct buildings and public
improvements. This enables the cost of these capital assets to be borne by the present and
future taxpayers receiving the benefit of the capital assets. These long-term liabilities, which
are full faith and credit debt of the Town, are recorded in the General Long-Term Debt
Account Group. The provision to be made in future budgets for capital indebtedness
represents the amount, exclusive of interest, authorized to be collected in future years from
taxpayers and others for liquidation of long-term liabilities.
The Serial Bonds Payable, as of December 31, 1995, are as follows:
PURPOSE
ISSUE MATURITY INTEREST
DATE DATE RATE
ORIGINAL
AMOUNT
OF ISSUE
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
1995
09-01-71
03-01-99
5.0%
$ 66,000
104,000
1.125.000
1.295.000
$ 10,400
.16,000
173.600
200 .000
Water
Sewer
Drainage
Water
Sewer
02-15-73
11-15-03
5.0%
36,800
55.200
92.000
9,600
14.400
24.000
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.1995
Note F - Lona-Tenn Debt (Continued)
The annual requirements to amortize bonded debt, as of December 31, 1995, are as follows:
YEAR ENDING
DECEMBER 31. PRINCIPAL INTEREST TOTAL
1996 $ 1,358,054 $ 1,464,581 $ 2,822,635
1997 1,398,000 1,391,938 2,789,938
1998 1,443,000 1,314,955 2,757,955
1999 1,413,000 1,235,799 2,648,799
2000 1,388,000 1,156,919 2,544,919
Thereafter 17.549.000 7.839.140 25.388.140
$24.549.054 $14.403.332 $38.952.386
2. Chanaes
The changes in the Town's indebtedness during the year ended December 31, 1995 are
summarized as follows:
BALANCE BALANCE
JANUARY 1. 1995 ADDITIONS REDUCTIONS DECEMBER 31. 1995
Serial Bonds $23,051,786 $2,610,054 $1,112,786 $24,549,054
Landfill Closure
and Post-Closure
Costs - Note J 550,000 550,000
Compensated
Absences - Note A.9 230.780 27.725 258 .505
Total ~23.282.566 $3.187.779 ~1.112.786 $25.357.559
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
NOTE G - Operatine 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, 1995 amounted to $26,630. At
December 31, 1995, the approximate annual operating lease commitments, subject to
appropriation of funds, were as follows:
YEAR ENDING
DECEMBER 31,
1996
1997
1998
1999
OPERATING
LEASES
$13,613
8,342
5,566
322
$27.843
TOTAL MINIMUM LEASE fAYMENTS
NOTE H - Deficit Fund Balances
Certain Capital Projects had deficit fund balances at the end of the year which are listed
below. These deficits arose through the funding of expenditures by issuing bond anticipation
notes. As the notes are paid, revenue will be recognized and the deficits will be eliminated.
Fleetwood Water
109.601)
109.713)
~(244.060)
~(67.022)
Oakwood Knolls Water
Emergency Services Building
Tri-Municipal Sewer Phase 3-A
NOTE I - Commitments and Contineent Liabilities
1. The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of
these cases and lawsuits, as determined by the Town Attorney, should not result in
material unfavorable settlements. Any return of property taxes made as a result of the
settlement of a tax certiorari case is funded by an increase in the property taxes
collected in the year subsequent to payment.
2. The Town has received amounts from.grantor agencies, principally the Department of
Housing and Urban Development. Any allowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of
expenditures which may be disallowed by the grantor agency cannot be determined at
this time.
3. As indicated in the legal counsel representation letter, the following are the pending or
threatened litigation against the Town as of December 31, 1995:
a. Action was brought by a developer seeking to reduce benefit assessments for
sewer improvements levied by the Town. The matter was settled by reducing
certain benefit assessments and by the payment of $240,000, without interest,
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
Commitments and Continaent Liabilities (Continued)
by the Town. This sum has been paid in prior years.
The developer has instituted a similar action pertaining to three additional
areas of the Town, however, a judgment was rendered in favor of the Town
in January 1995. The developer has appealed this decision and the appeal is
pending.
b. A consent judgement was executed into between the Town and the New York
State Department of Environmental Conservation dated April 18, 1988
regarding alleged environmental violations. Due to numerous technical
difficulties, the Town of Wappinger was unable to meet the threshold dates
contained in the consent judgement, and an amended consent judgement was
re-negotiated and approved by both parties. The amended judgement
required the Town of Wappinger, New York to pay a penalty of $40,000 for
failure to comply with the terms of the original consent judgement. The
penalty was paid during the 1992 calendar year.
The amended consent judgement required the Town to construct a sewer line
to the Tri-Municipal Sewer Treatment Plant plus a one million gallon
expansion of said plant. The Town, however, does not own the plant nor
does it have voting rights on the Commission's governing board. 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. Construction is on-going; however as a result of additional difficulties
between the Tri-Municipal Sewer Commission and the Department of
Environmental Conservation delays have occurred and a Third Amended
Judgement has been agreed to, extending the date of completion to July 1,
1997.
Funding for the project has been provided by two authorizations for a total
project cost of $19,630,054. Through balance sheet date $17,189,840 in
bonds have been issued through the Environmental Facility Corporation and
$2,060,414 in Bond Anticipation Notes have been issued.
Total project costs incurred through balance sheet date amounted to
$15,428,000. Under the terms of the agreements with the Environmental
Facility Corporation serial bond proceeds are required to be deposited into a
Construction Fund Account, be invested in U.S. Treasury securities until
drawn upon and be subject to regulatory approvals before being drawn upon.
The unspent balance in the Construction Fund Accounts amounted to
$3,595,800, as of December 31, 1995 and is classified as a Restricted Asset.
c. The Town has been one of multiple municipal and private party defendants in
a lawsuit brought by the owner of a landfill site who was designated as a
potentially responsible party by the Federal Environmental Protection
Agency. The claim against the Town arose through the dumping in the past
of sludge generated by the Town's sewer plants at the site. The site was
ordered closed in 1990. Negotiations have been continuing and in December
1995 the Town Board authorized settlement of this claim in an amount not to
exceed $22,500. Payment was made in March 1996 of $22,000 in final
settlement.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1995
NOTE .T - Municipal Landfill
Castle Point Landfill
The Town has voluntarily entered into a Consent Order with the New York State Department
of Environmental Conservation to close, cap and monitor the landfill at Castle Point. The
Town estimates the cost of closing and capping the landfill to be $550,000, which has been
recorded in the Long Term Debt Account Group (see Note F). The costs of monitoring,
which could be required for up to thirty years after closure, have not been estimated since an
agreement with the Department of Conservation has not yet been reached as to the nature and
extent of required monitoring. The costs of both closure and postclosure monitoring are
ordinarily recognized over the expected useful life of the landfill, however, since the landfill
has stopped accepting refuse, all costs are being recognized as the terms of closure and
postclosure requirements are determined. The actual costs may be higher due to inflation,
changes in technology or subsequent changes in regulations.
NOTE K - Subsequent Events
Tn Municipal Sewer Plant Expansion - Phase IDA
In May 1996 the Town entered into a contract with the Tri-Municipal Sewer Commission
with regard to the further expansion of the Commission's sewage treatment facility, from 2.4
million gallon per day capacity to 3.4 million gallon per day' capacity. The commission will
hire consultants to prepare a map, plan and report which wIll include environmental studies,
permit applications and estimates of project costs. The funding for the map, plan and report
and other related costs has been provided through a bond resolution authorized in February
1994 of $375,000. Cost of the map, plan and report are estimated to amount to $274,250.
27