1994-12-31 (2)
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TOWN OF WAPPINGER, NEW YORK
FINANCIAL STATEMENTS
AS OF AND FOR mE YEAR ENDED
DECEMBER 31. 1994
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TOWN OF W APPlNGER, NEW YORK
TABLE OF CONTENTS
DECEMBER 31. 1994
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 Auditine Standards ...................................... .2-4
Independent Auditors' Report on Compliance With
Laws and ReJUlations Based on an Audit of
General Purpose Financial Statements Performed in
Accordance With Government Auditine Standards ...............................5-6
GENERAL PURPOSE FINANCIAL STATEMENTS:
Combined Balance Sheet - All Fund Types and
Account Groups ................................................... .7-8
Combined Statements of Revenues, Expenditures and
Chanees in Fund Equity - All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . .9-10
Combined Statements of Revenues, Expenditures and
Chanees in Fund Equity - Budeet and Actual -
General and Special Revenue Funds .... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12
Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-27
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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 financial statements of the Town of
Wappinger, New York, as of December 31, 1994, and for the year then ended. These general
purpose financial 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 bas~s, 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, 1994, and the results of its operations for the year then ended in conformity with generally
accepted accounting principles.
~/ O~/~~~/C~~C.
Wappingers Falls, New York
July 14, 1995
1
62 East Main Street. P.O. Box 918. 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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Sedore,
0' Sullivan,
Letterio
& Barschi
CertIfied Public Accountonls. 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 31,1994, and have issued our report thereon dated July
14, 1995.
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.
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, 1994, we considered its internal
control structure in order to determine our auditing procedures for the purpose of expressing our
opinion on the general purpose financial statements and not to provide assurance on the internal
control structure.
The management of the Town of Wappinger, New York, is responsible for establishing and
maintaining an internal control structure. In fulfilling 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 financial statements in accordance with generally accepted accounting
2
62 East Main Street. P,O. Box 918 · Wappingers Falls NY 12590
Wappingers Falls (914) 297-1111/fax (914) 297-1432 . Beacon (914) 831-Q542/fax (914) 831-5114 · Newburgh (914) 565-1373
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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.
For the purpose of this report, we have classified the significant internal control structure
policies and procedures in the following categories:
Accountini Controls
Cycles of th~ entity's activity:
Treasury or financing
Revenue/receipts
Purchases/disbursements
External financial reporting
Financial statement captions:
Cash and cash equivalents
Receivables
Property and equipment
Payables and accrued liabilities
Debt
Fund balance/equity
Accounting applications:
Billings
Receivables
Purchasing and receiving
Cash disbursements
Payroll
Property and equipment
General ledger
For all of the control categories listed above, 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.
Our consideration of the internal control structure would not necessarily disclose all matters in
the internal control structure that might be material weaknesses under standards established by
the American Institute of Certified Public Accountants. A material weakness is a reportable
condition in which the design or operation of the specific 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 fmancial statements being audited may occur and
not be detected within a timely period by employees in the normal
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course of performing their assigned functions. We noted no matters involving the internal
control structure and its operation that we consider to be material weaknesses as defined above.
However, 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 July 14, 1995.
This report is intended for the information of the Supervisor, Town Board, and Management.
This restriction is not intended to limit the distribution of this report, which is a matter of public
record.
~J C>~)~ ~ ~.I Cp,q.o, PC
Wappingers Falls, New York
July 14, 1995
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Sedore,
0' Sullivan,
Letterio
& Barschi
Certified 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 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, 1994, and have issued our report thereon
dated July 14, 1995.
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
management. As part of obtaining reasonable assurance about whether the fmancial
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 indicate that, with respect to the items tested, the Town of
Wappinger, New York, complied, in all material respects, with the provisions referred to in
the preceding paragraph. With respect to the items not tested, nothing came to our attention
that caused us to believe that the Town of Wappinger, New York, had not complied,. in all
material respects, with those provisions.
s
62 East Main Street. P.O. Box 918. 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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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 July 14,
1995.
This report is intended for the information of the Supervisor, Town Board, and Management.
This restriction is not intended to limit the distribution of this report, which is a matter of
public record.
~~(J~J~ ~~..I C~A~ ~C
Wappingers Falls, New York
July 14, 1995
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TOWN OF WAPPINGERt,..NEW YORK
COMBINED BALANCE SHEET -
ALL FUND TYPFS AND ACCOUNT GROUPS
DECEMBER 31. 1994
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
$382,965
2,475
34,135
~419.s75
$
419,575
419.575
$419.575
ACCOUNT GROUPS
GENERAL
GENERAL LONG-TERM
FIXED ASSETS DEBT
TOTAL
(MEMORANDUM
ONLy) NOTE A.IS
$ 6,539,770
716,722
8,639,721
564,923
34,135
14,467,242
23.282.566
$54.245.079
$
$
14,467,242
23.282.566
$23.282.566
~14.467 .242
$
$
$ 383,391
6,610
158,069
230,780
564,923
419,575
2,525,000
23.051.786
27.340.134
230,780
23.051.786
23.282.566
14,467,242
14,467,242
577 ,533
1,610,902
10.249.268
26.904.945
14.467.242
$14.467.242
$23.282.566
$54.245.079
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TOWN OF WAPPINGER NEW YORK
COMBINED STATEMENTS OF REV~.~PENDITURES
AND CHANGFS IN FUND EQ -
ALL GOVERNMENTAL FUND TYPFS
FOR mE YEAR ENDED DECEMBER 31. 1994
$
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GOVERNMENTAL FUND TYPES
SPECIAL CAPITAL
GENERAL REVENUE PROJECTS
REVENUES
Real Property Taxes - Note A.ll
Real Property Tax Items - Note A.11
Non-Property Tax Items
Departmental Income
Intergovernmental Charges
Uses of Money and Property - Note A.6
Licenses and Permits
Fines and Forfeitures
Sale of Property and
Compensation for Loss
Miscellaneous Local Sources
State Aid
$1,281,374
56,121
727,554
105,282
2,835
70,493
50,172
122,163
6,615
2,955
570.608
'\
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.12, E and F
2.996.172
1,152,728
198,519
101,944
2,084
384,993
290,988
282,610
412.697
2.826.563
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
169.609
TOTAL OTHER FINANCING SOURCES (USES)
EXCESS OF REVENUES AND OTHER SOURCES
OVER (UNDER) EXPENDITURES AND OTHER USES 169.609
FUND EQUITY, JANUARY 1, 1994
FUND EQUITY, DECEMBER 31, 1994
2.129.519
$ 2.299.128
$3,001,140
38
1,387,118
322,164
4,565
11,851
86.708
4.813.584
6,611
230,084
1,395,131
1,486,125
215,842
1.645.707
4.979.500
065.916)
21,735
(33,000)
01.265)
077.181)
1.287.953
~ 1.110.772
98,069
1,531
99 .600
1,175,806
19,080
145,483
1,308,972
2.649.341
(2.549.741)
33 , ()()()
(21,735)
175,714
10.019.784
10.206.763
7.657.022
1.370.781
$ 9.027.803
The accompanying Notes to the Financial Statements are an integral part of these financial statements.
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TOTAL
(MEMORANDUM
ONL Yl NOTE A.IS
$4,282,514
56,159
127,554
1,492,400
2,835
490,126
50,112
122,163
11,180
16,337
657.316
7.909.356
2,335,145
217,599
230,084
1,642,558
2,084
384,993
3,086,085
498,452
2.058.404
10.455.404
(2.546.048)
54,735
(54,735)
175,714
10.019.784
10.195.498
7.649.450
4.788.253
$12.437.703
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TOWN OF W APPINGER\..~jy... YORK
COMBINED STATEMENTS OFREV~uL.') EXPENDITURES
AND CHANGES IN FUND EOUITY - BUDGET AND ACTUAL -
GENERAL AND SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED DECEMBER 31. 1994
TOTAL EXPENDITURES
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Operating Transfers In
Operating Transfers Out
TOTAL OTHER FINANCING
SOURCES (USES)
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES
FUND EQUITY, JANUARY 1, 1994
FUND EQUITY, DECEMBER 31, 1994
GENERAL FUND
VARIANCE -
FAVORABLE
BUDGET AcruAL lUNFA VORABLE)
$1,281,374 $1,281,374 $
35,000 56,121 21,121
560,000 727,554 167,554
74,855 105,282 30,427
1,200 2,835 1,635
40,000 70,493 30,493
40,100 50,172 10,072
91,000 122,163 31,163
6,315 6,615 300
1,500 2,955 1,455
345.100 570.608 225.508
2.476.444 2.996.172 519.728
1,276,On 1,152,728 123,349
221,437 198,519 22,918
- - -
120,498 101,944 18,554
8,600 2,084 6,516
405,373 384,993 20,380
381,745 290,988 90,757
334,439 282,610 51,829
412.699 412.697 2
3.160.868 2.826.563 334.305
(684.424) 169.609 854.033
REVENUES
Real Property Taxes
Real Property Tax Items
Non-Property Tax Items
Departmental Income
Intergovernmental Charges
Uses of Money and Property
Licenses and Permits
Fines and Forfeitures
Sale of Property and
Compensation for Loss
Miscellaneous Local Sources
State Aid
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
$(684.424) 169,609
2.129.519
~854.033
$2.299.128
The accompanying Notes to the Financial Statements are an integral part of these financial statements.
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SPECIAL REVENUE FUND
V ARlANCE -
FAVORABLE
BUDGET ACTUAL lUNFA VORABLE)
$3,001,140 $3,001,140 $
38 38
2,250 (2,250>
1,329,229 1,387,118 57,889
75,244 322,164 246,920
1,000 4,565 3,565
11,460 11,851 391
86.709 86.708 (I)
4.507 .032 4.813.584 306.552
6,611 6,611
-
231,700 230,084 1,616
1,532,479 1,395,131 137,348
1,586,781 1,486,125 100,656
275,626 215,842 59,784
1.898.702 1.645.707 252.995
5.531.899 4.979.500 552.399
0.024.867) 065.916) 858.951
21,735 21,735
(33.000) (33.000)
(33.000) (11.265) 21.735
~0.057 .867) (177,181) $ 880.686
1.287 .953
~ 1.110.772
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TOWN OF WAPPINGER, NEW YORK
NOTFS TO TIlE FINANCIAL STATEMENTS
DECEMBER 31. 1994
NOTE A - SummaI:)' of Accountlnr 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.
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 "financial 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 TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
S1lmmary of Accounting Pollcies (Continued)
spendable resources." Governmental fund operating statements present
increases (revenues and other financing 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
Trost 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
NOTFS TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
S11mmary of Accounting Policies (Continued)
General Flxed 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 similar assets)
that are immovable and of value only to the Town.
General Lolli-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. 1994
S1.mmary of Accounting Policies (Continued)
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.
S. 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. Casb 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.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
Stlrnrnary of Accounting Policies (Continued)
The cash and investments of the Town at December 31, 1994, are as follows:
SPECIAL CAPITAL TRUST &
GENERAL REVENUE PROJECTS AGENCY
FUND FUND FUND FUND TOTAL
Non-Interest
Bearing Accounts $ 1,909 $ - $ $ - $ 1,909
Interest Bearing
Accounts 147,458 230,705 919,252 382,965 1,680,380
Repurchase
Agreements 1.400.688 675.942 2.780.851 4.857 .481
TOTAL $1.550.055 $906.647 $3.700.103 ~382.965 ~6.539.770
All of the Town's deposits were covered by Federal Deposit Insurance or collateralized
with securities held by a third party custodian.
7. 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 made 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
$230,780 of accrued vacation and sick leave at December 31, 1994, 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.
8. Pension Plans
General Information
The Town of Wappinger participates in the New York State and Local Employees'
Retirement System (System). This is a cost sharing multiple public employer
retirement system. Obligations of employers and employees to contribute and
benefits to employees are governed by the New York State Retirement and Social
Security Law (NYSRSSL). The System offers a wide range of plans and benefits
which are related to years of service and final average salary, vesting of retirement
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
Summary of Accounting Policies (Continued)
benefits, death and disability benefits and optional methods of benefit payments. All
benefits generally vest after ten years of credited service.
The NYSRSSL provides that all participants in each system are jointly and severally
liable for any actuarial unfunded amounts. Such amounts are collected through
annual billings to all participating employers. Generally, all employees, except
certain part-time employees, participate m the System. The System is
noncontributory except for employees who joined the Employees' Retirement System
after July 27, 1976 who contribute 3% of their salary. Employee contributions are
deducted by employer's from employees' paychecks and are sent currently to the
Employees' Retirement System.
Employee Groups Covered
Nearly all Town of Wappinger employees are eligible for membership in the System.
All employees employed in a full-time position who commenced employment after
June 30, 1976 are mandatory members. The total payroll for all employees of the
Town of Wappinger for fiscal year 1994 was $1,551,804 of which $1,297,659 was
attributable to employees covered by the Employees' Retirement System.
Payments Due the System
Contributions payable to the Systems are billed in December, on the basis of salaries
paid/payable dunng the System's fiscal year beginning the previous April 1 and
ending the subsequent March 31, in accordance with funding requirements
determined by the actuary of the System. The contributions required and made to
the System in December 1994 amounted to $2,579 and satisfied the contribution
requirements through March 31, 1994. Employees contributed $28,474 to the
System during 1994. Contributions by employer and employee represented .2% and
2.2 % of covered payroll respectively.
Effective with the system year beginning April 1, 1994, the System will return to the
aggregate funding method, a method which has been used for years up to March 31,
1990. Under this method the excess of the actuarial liabilities over the actuarial
assets was funded using a level percentage of salary over the current members' future
working lifetimes. For the years between March 31, 1990 and March 31, 1994, the
modified projected unit credit funding method was used which utilizes a rolling
amortization period for differences between actuarial assets and actuarial liabilities.
The effect for those four years has been that employer contributions were generally
lower than would have been the case under the aggregate cost funding method. The
return to the aggregate cost method will be accomplished using a four year phase-in.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
S'Jmmary of Accounting Policies (Continued)
The Pension Benefit Obligation (PBO) of credited projected benefits is a standardized
disclosure measure of the actuarial present value of pension benefits, adjusted for the
effects of projected salary increases estimated to be payable in the future as a result
of employee service to date. The retirement systems do not make separate
measurements for individual employers.
The PBO of credited projected benefits at March 31, 1994 for the Employees'
Retirement System, determined through an actuarial valuation performed as of that
date, is $49.9 billion. The net assets available to pay benefits at that date is $50.8
billion. Town of Wappinger employer's contribution was less than 1 % of total
contributions required of all employers participating in this System.
Ten year historical trend information showing the progress in accumulating sufficient
assets to pay benefits when due is presented in the Annual Financial Report of the
System. Additional detailed information concerning the System may also be found
therein.
9. 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.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
Sl'rnrnary of Accounting Policies (Continued)
10. 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 1994, $12,080 was paid on behalf of six retirees and recorded as
expenditures in the General and Special Revenue Funds.
11. 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.
12. Long-Term 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.
13. 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:
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TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
S11mmary of Accounting Pollcles (Continued)
A. General Fund
Reserved for Encumbrances
Reserved for Downstream Drainage
BALANCE AT
DECEMBER 31. 1994
$ 11,950
559.083
B. Special Revenue Fund
Reserved for Encumbrances
~571.033
~ 6.500
14. 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.
15. 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, 1994 consist of the following:
GENERAL SPECIAL
FUND RESERVE FUND
TOTAL
Accounts Receivable
Water Rents Receivable
Sewer Rents Receivable
$226,361
$ 44,448
149,912
296.001
$270,809
149,912
296.001
TOTAL
$226.361
$490.361
$716.722
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
NOTE C - Interfund Receivables and Payables
The following is a summary of amounts due from and due to other funds as of December 31,
1994:
DUE TO DUE FROM
General Fund $ - 0- $560,765
Capital Projects Fund 310,350 -0-
Special Revenue Fund 254,573 1,683
Trust and Agency Fund - 0- 2.475
TOTAL S564.923 S564.923
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, 1994:
BALANCE-
DECEMBER 31,
1993 ADDITIONS
Land $ 5,106,650 $
Buildings 4,394,164 1,149
Improvement Other
Than Buildings 2,447,426 327,646
Machinery and
Equipment 1.973.175 264.217
TOTAL S13.921.415 S593.012
BALANCE -
DECEMBER 31,
DELETIONS 1994
$ $5,106,650
4,395,313
2,775,072
47.185
2.190.207
S47.185
SI4.467.242
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, 1994, are as follows:
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
1994
PURPOSE
ORIGINAL
ISSUE
DATE
MATURITY
DATE
ORIGINAL
INTEREST AMOUNT OF
RATE ISSUE
Water 09/17/91 07/14/95 3.80% $375,760 $331,786
Water 09/16/92 07/14/95 3.80% 30,500 28,000
Sewer 09/17/91 07/14/95 3.80% 4,000,000 1,790,214
Sewer 07/14/94 07/14/95 3.80% 375.000 375.000
TOTAL $4.781.260 ~2.525.000
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TOWN OF WAPPINGER, NEW YORK
NOTES TO TIlE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
NOTE F - Serial Bonds Payable
The Serial Bonds Payable, as of December 31, 1994, are as follows:
AMOUNT
oursrANDING
ORIGINAL AT
ISSUE MATURITY INTERESr AMOUNT DECEMBER 31,
PURPOSE DATE DATE RATE OF ISSUE 1994
Water $ 66,000 $ 13,000
Sewer 104,000 20,000
Drainage 1.125.000 217.000
09-01-71 03-01-99 5.0% 1.295.000 250.000
Water 36,800 10,800
Sewer 55.200 16.200
02-15-73 11-15-03 5.0% 92.000 27 .000
Water 400,000 144,000
Sewer 500,000 175,500
Drainage 375.000 130.500
03-01-74 03-01-03 5.8% 1.275 .000 450.000
Water 2,630,000 983,000
Sewer 3,005,000 1,120,000
Drainage 400.000 147.000
05-01-77 05-01-04 5.375% 6.035.000 2.250.000
Water 330,000 83,400
Sewer 222,000 56,000
Drainage 239.400 60.600
05-01-78 05-01-98 6.10% 791.400 200.000
Water 148,070 93,100
Sewer 362,000 227,450
Town Hall 700.000 439 .450
12-01-85 06-01-05 7.75 % 1.210.070 760.000
Water 364,500 202,800
Machinery and Equipment 203.000 97 .200
05-01-87 05-01-02 6.3% 567 .500 300.000
Water 824,400 688,200
Sewer 528,000 433,800
Drainage 2.192.600 1.913.000
08-15-91 08-15-11 6.5% 3.545.000 3.035.000
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
Serial Bonds (Continued)
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
1994
PURPOSE
ISSUE MATURITY INTEREST
DATE DATE RATE
ORIGINAL
AMOUNT
OF ISSUE
Sewer - Tri-Municipal 11-12-92 09-15-12 3% - 6.65% 6.060.000 5.760.000
Emergency Services
Building 10-01-94 10-01-14 6.01% I.SOO.000 1.500.000
Sewer - Tri-Municipal 12-15-94 05-15-15 Variable 8.519.786 8.519.786
~30.890. 756 ~23.051.786
The changes in the Town's indebtedness during the year ended December 31, 1994 are
summarized as follows:
JANUARY 1, 1994 DECEMBER 31, 1994
BALANCE ADDITIONS REDUCITONS ---B.ALANCE
Serial Bonds $13,930,000 $10,019,786 $898,000 $23,051,786
Judgements and
Claims 60,000 60,000 - 0 -
Compensated
Absences 237 .531 6.751 230.780
Total $14.227.531 ~10.019.786 $964.751 ~23.282.566
The annual requirements to amortize bonded debt, as of December 31, 1994, are as follows:
YEAR ENDING
DECEMBER 31. PRINCIPAL INTEREST TOTAL
1995 $ 1,217,786 $1,352,743 $ 2,570,529
1996 1,253,000 1,289,343 2,542,343
1997 1,303,000 1,221,623 2,524,623
1998 1,343,000 1,150,103 2,493,103
1999 1,308,000 1,076,764 2,:~84, 764
Thereafter 16.627.000 7 .491.884 24.118.884
~23.051.786 ~13.s82.460 $36.634.246
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
NOTE G - Operatinr 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, 1994 amounted to $25,850.At
December 31, 1994, the approximate annual operating lease commitments, subject to
appropriation of funds, were as follows:
YEAR ENDING OPERATING
DECEMBER 31. LEASES
1995 $21,972
1996 5,173
1997 3,694
1998 3,060
1999 1.915
TOTAL MINIMUM LEASE PAYMENTS J35.814
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.
Central Wappingers Water # 2
Oakwood Knolls Water
~16.785)
~(22.37ll
~
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.
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.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO mE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
Commitments and Contineent Liabilities (Continued)
3. As indicated in the legal counsel representation letter, the following are the pending or
threatened litigation against the Town as of December 31, 1994:
a. Action was brought by a developer seeking to reduce benefit assessments for
sewer improvements levied by the Town. The matter has been settled. In
addition to a reduction in the number of benefit assessments, the Town was
required to pay the sum of $240,000, without interest, payable in four annual
installments of $60,000 per year. The last installment of $60,000 was paid
during the 1994 calendar year.
The developer has instituted similar actions pertaining to different areas of the
Town, however, a judgment was rendered in favor of the Town in January
1995. The developer has appealed.
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 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. 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 an original authorization in
1991 of $17,020,000 and authorization in 1995 (See Note K - Subsequent
Events) of an additional $2,610,054 in bonds for a total project cost of
$19,630,054. Through balance sheet date $14,579,786 in bonds have been
issued through the Environmental Facility Corporation and $2,060,414 in
BANS have been issued.
Total project costs incurred through balance sheet date amounted to
$8,220,600. 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
$8,639,721, as of December 31, 1994 and are classified as Restricted Assets.
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 1994
Commitments and Contin,ent Liabilities (Continued)
4. During 1994 the Town began construction of an Emergency Services Building the
purpose of which is to provide space to the New York State Police, Troop K, for
barracks and to provide space for Sloper- Willin Community Ambulance Service, Inc.
Under the terms of an intermunicipal agreement both tenants will pay their proportionate
share of construction costs plus interior operating and maintenance costs. The Town has
authorized a total of $1,890,000 in bonds (See Note K - Subsequent Events) to finance
construction. At December 31, 1994 approximately $690,200 in construction costs had
been incurred.
NOTE J - 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 the landfill at Castle Point. Pinal settlement has not
yet been reached, however as to the appropriate regulation section under which the landfill
will be closed. Therefore estimates of costs of closure and postclosure care cannot be made.
Ordinarily such costs are recognized over the expected life of the landfill, however, since the
landfill has stopped accepting refuse, all costs will be recognized when the terms of closure
are determined.
NOTE K - Subsequent Events
In 1995, the Town authorized and issued the following debt:
INTEREST MATURITY
DATE DESCRIPTION AMOUNT RATE DATE
05-04-95 BAN - Emergency $ 390,000 4.17% 07-14-95
Services Building
06-01-95 Serial Bond - Sewer $2,610,054 3.70 - 5.55% 11-15-15
Tri-Municipal
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