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1991-12-31 , ., TOWN OF WAPPINGER, NEW YORK FINANCIAL STATEMENTS ., AS OF AND FOR mE YEAR ENDED DECEMBER 31. 1991 .. ~~c~\'J~Q 1.1 ~t ~~\. ~o~~ f.S~o '"I>- ~v-\'" c\-t1' "{o~~ .. .. , TOWN OF WAPPINGER, NEW YORK TABLE OF CONTENTS DECEMBER 31. 1991 DESCRIPTION PAGE ., Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 Independent Auditors' Report on Internal Control Structure Related Matters Noted in a Financial Statement Audit Conducted in Accordance With Government Auditing Standards ......................................... .2-4 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 Issued by the GAO ................... 5-6 ., GENERAL PURPOSE FINANCIAL STATEMENTS Combined Balance Sheet - All Fund Types and Account Groups ....................................................7-8 Combined Statements of Revenues, Expenditures and Changes in Fund Equity - All Governmental Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . . 9-10 ., Combined Statements of Revenues, Expenditures and Changes in Fund Equity - Budget and Actual - General and Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11-12 Notes to the Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13-22 ., .. . ~edore, O'Sullivan &iLetterm Certified Public Accountants, P.G 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, 1991, 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. 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, 1991, and the results of its operations for the year then ended in conformity with generally accepted accounting principles. . ~-f'Jtu.1 Ol~ \( xiaJjtlj;?e/l;q~,(FC Wappingers Falls, New York July 1, 1992 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 .. . :Sedore, O'Sullivan ~~etterio Certified Public Accountants, P.G. . INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL STRUCTURE RELATED MATTERS NOTED IN A FINANCIAL STATEMENT AUDIT CONDUCTED 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, 1991, and have issued our report thereon dated July 1, 1992. We have conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and O.M.B. Circular A-128 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, 1991, 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 914-831-0542/fax 914-831-5114 .. ., 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: Accounting Controls Cycles of the entities' 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 financial statements being audited may occur and not be detected within a timely period by employees in the normal 3 .. . 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. 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. ., ;! , ; - {Y fl.. .-h L ~. (! ,of! ~ fie, v~t{'itJ-t~ i 0 Y,U.kI!Lt~/;U l! ~ /' ; Wappingers Falls, New York July 1, 1992 ., ., ., 4 .. . ~edore, O'Sullivon ~'Letterio 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 ISSUED BY THE GAO 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, 1991, and have issued our report thereon dated July 1, 1992. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States, and the provisions of Office of Management and Budget Circular A-128, "Audits of State and Local Governments." Those standards and O.M.B. Circular A-128 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 general purpose 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, our objective was not to provide an opinion on overall compliance with such provisions. . The results of our test 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. 5 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 .. II' 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. .. vlc#u I 0 I kL;-(fd~ ct ,;!~, (! P/4.s1 rP. c- Wappingers Falls, New York July 1, 1992 .. .. .. 6 .. .. TOWN OF WAPPINGERt,..NEW YORK COMBINED BALANC~ SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31. 1991 GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS ASSETS Cash - Note A.6 $1,244,464 $1,576,452 $3,850,214 ., Other Receivables (Net) - Note A.12 46,227 373,296 State and Federal Receivables 179,515 7,657 Due From Other Funds - Note B 58,302 4,594 Prepaid Expenses 431 Property, Plant and Equipment - Notes A.3 and C Amounts To Be Provided In Future Budgets TOTAL ASSETS $1.528.939 $1. 961. 999 $3.850.214 LIABILITIES .. Accounts Payable $ 26,187 $ 104,833 $ 708 Retainage Payable 970 Accrued Liabilities and Compensated Absences - Note A.7 4,545 Due to Other Funds - Note B 4,594 58,302 Agency Liabilities Bond Anticipation Notes Payable - Note D 4,375,760 Capital Note Payable - Note E Serial Bonds Payable - Notes A.I0 and F Reimbursement Due to Customer - Note 1.3 123.347 TOTAL LIABILITIES 26.187 237.319 4.435.740 .. FUND EQUITY Investment in General Fixed Assets Fund Balance Reserved 58,303 Unreserved 1.444.449 1. 724. 680 (585.526) TOTAL FUND EQUITY 1.502.752 1. 724.680 (585 .526) TOTAL LIABILITIES AND FUND EQUITY $1.528.939 $1.961.999 $3.850.214 .. The accompanying Notes to the Financial Statements are an integral part of this statement. 7 .. .. FIDUCIARY FUND TYPES ACCOUNT GROUPS GENERAL TOTAL TRUST GENERAL LONG-TERM (MEMORANDUM AND AGENCY FIXED ASSETS DEBT ONLy) NOTE A.13 . $376,222 $ $ $ 7,047,352 419,523 187,172 62,896 431 21,764,656 21,764,656 9.629.028 9.629.028 $376.222 $21.764.656 $9.629.028 $39.111.058 . $ 2,715 $ $ $ 134,443 970 395,328 399,873 62,896 373,507 373,507 4,375,760 57,700 57,700 9,176,000 9,176,000 123.347 . 376.222 9.629.028 14.704.496 21,764,656 21,764,656 58,303 2.583.603 20.998.896 24.406.562 .- $376.222 $21.764.656 $9.629.028 $39 .111.058 8 ,. TOWN OF WAPPINGER NEW YORK COMBINED STATEMENTS OF REV~r~XPENDITURES AND CHANGES IN FUND EQ Y - ALL GOVERNMENTAL FUND TYPES FOR THE YEAR ENDED DECEMBER 31. 1991 .. GOVERNMENTAL FUND TYPES SPECIAL CAPITAL GENERAL REVENUE PROJECTS REVENUES Real Property Taxes - Note A.9 $ 1,008,247 $2,385,451 $ Real Property Tax Items - Note A.9 54,146 8 Non-Property Tax Items 696,140 Departmental Income 166,391 1,136,823 Intergovernmental Charges 2,820 .. Uses of Money and Property - Note A.6 69,699 133,195 142,331 Licenses and Permits 51,172 Fines and Forfeitures 107,466 Sale of Property and Compensation for Loss 6,796 8,827 Miscellaneous Local Sources 307,482 175 27,626 State Aid 583,062 77,624 Federal Aid 24.119 TOTAL REVENUES 3.053.421 3.766.222 169.957 EXPENDITURES General Government Support 1,011 ,947 4,890 330,392 ., Public Safety 190,207 Health 180,990 Transportation 21,560 1,356,131 Economic Assistance and Opportunity 71,276 Culture and Recreation 368,886 Home and Community Service 245,994 1,370,590 3,340,148 Employee Benefits 220,430 182,095 Debt Service - Notes A.1O, D, E and F 513.681 717 .952 TOTAL EXPENDITURES 2.643.981 3.812.648 3.670.540 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 409 .440 (46.426) (3.500.583) .. OTHER FINANCING SOURCES (USES) Operating Transfers In 32,071 28,351 Operating Transfers Out (27,646) (32,473) (303) Proceeds From Obligations 3.613.862 TOTAL OTHER FINANCING SOURCES (USES) (27.646) (402) 3.641.910 EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES 381.794 (46.828) 141.327 FUND EQUITY, JANUARY 1, 1991 1,120,958 1,771 ,508 (842,253) PRIOR PERIOD ADJUSTMENTS - NOTE G 115.400 .. ADJUSTED FUND EQUITY, JANUARY 1, 1991 1.120.958 1. 771.508 (726.853) FUND EQUITY, DECEMBER 31, 1990 $1.502.752 $1.724.680 $ (585 .526) The accompanying Notes to the Financial Statements are an integral part of these statements. 9 .. .. TOTAL (MEMORANDUM ONL Y) NOTE A.13 $ 3,393,698 54,154 696,140 . 1,303,214 2,820 345,225 51,172 107,466 15,623 335,283 660,686 24.119 6.989.600 . 1,347,229 190,207 180,990 1,377 ,691 71,276 368,886 4,956,732 402,525 1.231.633 10.127 .169 . (3.137.569) 60,422 (60,422) 3.613.862 3.613.862 476.293 2,050,213 . 115.400 2.165.613 $ 2.641.906 10 .. TOWN OF WAPPINGER NEW YORK COMBINED STATEMENTS OF REVENUESt EXPENDITURES - AND CHANGES IN FUND E~UlTY - BUDG T AND ACTUAL _ GENERAL AND SP CIAL REVENUE FUNDS FOR THE YEAR ENDED DECEMBER 31. 1991 GENERAL FUND - NOTE F VARIANCE - FAVORABLE REVENUES BUDGET ACTUAL (UNF A VORABLE) Real Property Taxes $1,008,247 $1,008,247 $ Real Property Tax Items 53,716 54,146 430 Non-Propertr Tax Items 634,600 696,140 61,540 Departmenta Income 110,887 166,391 55,504 Intergovernmental Charges 2,820 2,820 Uses of Money and Property 68,756 69,699 943 .. Licenses and Permits 49,746 51,172 1,426 Fines and Forfeitures 84,444 107,466 23,022 Sale of Property and Compensation for Loss 6,796 6,796 Miscellaneous Local Sources 1,500 307,482 305,982 State Aid 570,121 583,062 12,941 Federal Aid TOTAL REVENUES 2.584.837 3.053.421 468.584 EXPENDITURES General Government Support 1,220,021 1,011 ,947 208,074 Public Safety 290,793 190,207 100,586 Health 16,200 16,200 .. Transportation 33,500 21,560 11 ,940 Economic Assistance and Opportunity 102,033 71,276 30,757 Culture and Recreation 420,905 368,886 52,019 Home and Community Service 347,468 245,994 101,474 Employee Benefits 284,815 220,430 64,385 Debt Service 513.684 513.681 3 TOTAL EXPENDITURES 3.229.419 2.643.981 585.438 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (644.582) 409 .440 1.054.022 OTHER FINANCING SOURCES (USES) Operating Transfers In .. Operating Transfers Out (27,646) (27,646) Proceeds From Obligations EXCESS OF REVENUES AND OTHER SOURCES OVER (UNDER) EXPENDITURES AND OTHER USES $ (672.228) (381,794) $1.054.022 FUND EQUITY, JANUARY 1,1991 BUDGETARY BASIS AS ADJUSTED 1.120.958 FUND EQUITY, DECEMBER 31, 1991 BUDGETARY BASIS 1,502,752 RECONCILIATION TO GAAP BASIS Addition of Expenditures Not Budgeted .. FUND EQUITY, DECEMBER 30, 1990 $1.502.752 The accompanying Notes to the Financial Statements are an integral part of these statements. II .. . SPECIAL REVENUE FUND - NOTE F VARIANCE - (NOTE A.S) FAVORABLE BUDGET ACTUAL ruNFAVORABLE) $2,385,451 $2,385,451 $ 8 8 . 1,069,581 90,958 1,136,823 133,195 67,242 42,237 825 8,827 8,002 175 175 76,680 77,624 944 3.623 .495 3.742.103 118.608 5,000 4,890 110 . 180,990 180,990 1,849,708 1,356,131 493,577 1,381,230 1,370,590 10,640 237,964 182,095 55,869 779.143 717 .952 61.191 4.434.035 3.812.648 621.387 (810.540) (70.545) 739.995 . 32,071 32,071 (32,473) (32,473) $ (810.942) (70,947) ~739.995 1.771.508 1,700,561 . 24.119 $1.724.680 12 . ., TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31. 1991 ., NOTE A - Summary of Accountine Policies The Town of Wappinger, New York (lithe Town") was incorporated in 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/woman. 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. 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 four generic fund types and two broad fund categories, as follows: GOVERNMENTAL FUND TYPES ., 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. 13 ., . Special Revenue Fund Special Revenue Fund is used to account for the proceeds of specific revenue sources (other than special assessments, expandable 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 TYPES 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. Agency funds are custodial in nature (assets equal liabilities), and do not involve measurement of results of operations. . 3. Property, Plant and Equipment, and Long- Tenn Liabilities The accounting and reporting treatment applied to property, plant and equipment and long-term 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 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. 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. 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. . . 14 .. .. .. 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. 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. Special reporting treatments are also applied to governmental fund prepaid expenses to indicate that they do not represent "available spendable resources", even though they are a component of net current assets. Such amounts are offset by fund balance reserve accounts. 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. 4. 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. .. 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; and (2) principal and interest on general long-term debt which is recognized when due. 5. 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 Special Grant Fund, which is part of the Special Revenue Fund, and the Capital Projects Fund, no budgetary controls were established or adopted. Unused appropriations of the annually budgeted funds lapse at the end of the year. .. 15 .. ... 6. Cash and Investments Cash includes amounts in demand deposits as well as short-term investments. State statutes govern the investment policies of the Town. Special time deposits and certificates of deposit not covered by Federal Deposit Insurance, must be collateralized by the banking institutions with investments governed under state statutes. ... The cash and investments of the Town at December 31, 1991, are as follows: SPECIAL CAPITAL TRUST & GENERAL REVENUE PROJECTS AGENCY FUND FUND FUND FUND TOTAL Non-Interest Bearing Accounts $ 650 $ $ $ $ 650 Interest Bearing Accounts 636,859 97,999 3,850,214 376,222 4,961,294 ... U.S. Government Securities 606.955 1.478.453 2.085.408 TOTAL $1.244.464 $1.576.452 $3.850.214 $376.222 $7.047.352 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 this 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 $215,328 of accrued vacation and sick leave at December 31, 1991, has been recorded in the General Long-Term Debt Account Group of Accounts, representing the "Town" commitment to fund such costs from future operations. 8. Pension Plans ... The Town employees are covered by the New York State Employees' Retirement System. Membership is mandatory for certain employees and optional for others. In accordance with the Retirement and Social Security Law, a participating employer cannot withhold membership in the Retirement System from any employee who desires to join. 16 ... .. .. All general employees employed in a full-time position who commenced employment after July 26, 1976 are mandatory members. A full-time position is one in which the employment is on a 12-month per year basis with a working week of not less than 30 hours and the appointment is not temporary or limited to a temporary period of less than one year. Generally, all employees appointed to either a competitive class position or a non- competitive class position before July 27, 1976 are also mandatory members. Annual deficiency contributions for all employers account for less than 1/2 % of the total contributions made to the Systems. 9. 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. The Town collects the taxes on behalf of the Town and County through August 31st. The Town's portion of the taxes is recognized and transferred prior to the County's portion. Therefore, the Town receives its entire tax, leaving the unpaids to the County Commissioner of Finance. 10. 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. 11. Reserves of Fund Equity .. The Town records indicate that a portion of the fund equity is legally segregated for a specific future use. The following details the description and amounts of the reserves used by the Town: A. General Fund BALANCE AT DECEMBER 31. 1991 Designated For Principal and Interest on Bonded Indebtedness $ 58.302 . 17 .. ., 12. Allowance for Uncollectible Accounts Allowance for Uncollectible Accounts are 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. Total Columns on Combined Statements 13. ., 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 - Interfund Receivables and Payables The following is a summary of amounts due from and due to other funds as of December 31, 1991: ., DUE TO DUE FROM General Fund $ 58,302 $ Capital Projects Fund 58,302 Special Revenue Fund 4,594 4,594 Trust and Agency Fund TOTAL $ 62.896 $ 62.896 ., NOTE C - General Fixed Assets Account Group The following is a summary of changes in the General Fixed Assets Account Group for the year ended December 31, 1991: BALANCE - BALANCE - DECEMBER 31, DECEMBER 31, 1990 ADDITIONS (DELETIONS) 1991 Land $ 741,022 $ $ $ 741,022 Buildings 15,941,502 500,000 16,436,502 Improvement Other Than Buildings 2,736,324 11,788 2,748,112 Machinery and ., Equipment 1.580.048 253.972 - 1.839.020 - TOTAL $20.998.896 $765.760 $ $21. 764.656 18 .. ., NOTE D - 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, 1991, are as follows: PURPOSE Water Sewer Sewer ISSUE DATE 9/17/91 9/17/91 9/17/91 INTEREST RATE 5.22% 5.17% 5.22% AMOUNT OUTSTANDING ORIGINAL AT AMOUNT OF DECEMBER 31, ISSUE 1991 $ 375,700 3,000,000 1.000.000 ., $ 375,700 3,000,000 1.000.000 TOTAL NOTE E - Capital Notes Payable $4.375.700 $4.375.700 ., Capital Notes may be renewed, however such notes, including renewals, must mature no later than the last day of the second fiscal year succeeding the issuance date. The Capital Notes outstanding, as of December 31, 1991, are as follows: AMOUNT ORIGINAL OUTSTANDING ISSUE INTEREST AMOUNT AT DECEMBER 31, PURPOSE DATE RATE OF ISSUE 1991 Drainage 8/13/90 6.19% $115.400 $57 .700 ., TOTAL $115.400 $57.700 The annual requirements to amortize capital notes, as of December 31, 1991, are as follows: YEAR ENDING DECEMBER 31. PRINCIPAL INTEREST 1992 $57.700 $3.572 TOTAL $57.700 $3.572 TOTAL $61.272 $61.272 ., 19 ., . NOTE F - Serial Bonds Payable The Serial Bonds Payable, as of December 31, 1991, are as follows: AMOUNT OUTSTANDING ORIGINAL AT ISSUE INTEREST AMOUNT DECEMBER 31, PURPOSE DATE RATE OF ISSUE 1991 Water $ 66,000 $ 20,800 . Sewer 104,000 32,000 Drainage 1.125.000 347 .200 09-01-71 5.0% 1.295.000 400.000 Water 36,800 14,400 Sewer 55.200 21.600 02-15-73 5.0% 92.000 36.000 Water 400,000 192,000 Sewer 500,000 234,000 Drainage 375.000 174.000 .. 03-01-74 5.8% 1.275.000 600.000 Water 2,630,000 1,277,000 Sewer 3,005,000 1,456,000 Drainage 400.000 192.000 05-01-77 5.375% 6.035.000 2.925.000 Water 330,000 139,650 Sewer 222,000 93,850 Drainage 239.400 101.500 05-01-78 6.10% 791.400 335.000 .. Water 148,070 111,400 Sewer 362,000 272,300 Town Hall 700.000 526.300 12-01-85 7.75% 1.210.070 910.000 Water 364,500 277 ,300 Town Hall, Re-evaluation 377 ,000 Machinery and Equipment 203.000 147.700 05-01-87 6.3% 944.500 425.000 Water 824,400 824,400 Sewer 528,000 528,000 . Drainage 2.192.600 2.192.600 08-15-91 6.5% 3.545.000 3.545.000 $15.187.970 $9.176.000 20 .. . NOTE F - Serial Bonds Payable CCont'd.l The annual requirements to amortize bonded debt, as of December 31, 1991, are as follows: YEAR ENDING DECEMBER 31. PRINCIPAL INTEREST TOTAL .. 1992 $ 618,000 $ 550,407 $1,168,407 1993 638,000 513,050 1,151,050 1994 648,000 474,754 1,122,754 1995 628,000 435,975 1,063,975 1996 633,000 398,447 1,031,447 Thereafter 6.011.000 2.234.414 8.245.414 $9.176.000 $4.607 .047 $13.783.047 .. NOTE G - Prior Period Adjustments and Report Classification Certain previously reported amounts have been reclassified to conform to 1991 report classifications. Adjustment to prior period Fund Equity balance is as follows: Capital Projects The Town had previously reported the Capital Note Payable as a liability fund in the Capital Projects. This Capital Note Payable has been reclassified and accounted for in the General Long-Term Debt Account Group. NOTE H - 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, 1991 amounted to $21,300. There are no future minimum lease payments due to the expiration of all leases at the end of the year. NOTE I - Commitments and Contineent Liabilities 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, will result in a maximum exposure of $11,000 to the Town. .. The Town has received or is owed 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 21 .. .. expenditures which may be disallowed by the grantor agency cannot be determined at this time. ., As indicated in the legal counsel representation letter, the following are the pending or threatened litigation against the Town as of December 31, 1991: 1. 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 is required to pay the sum of $240,000, without interest, payable in four annual installments of $60,000 per year. The first installment for $60,000 was paid in the 1991 calendar year. The remaining three installments, in the amount of $180,000, have been recorded in the General Long-Term Debt Account Group. 2. A consent judgment was entered into by the Town and the Department of Environmental Conservation. Due to numerous technical difficulties, the Town of Wappinger was unable to meet the threshold dates contained in the consent judgment, and an amended consent judgment was re-negotiated and approved by both parties. The amended judgment 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 judgment. The amount of $40,000 has been accrued as a current liability in the Special Revenue Fund at December 31, 1990. - .. 3. Through inadvertence, a developer was overcharged for its share of the operation and maintenance charges for sewer usage. The overbilling was in the amount of $123,347. This claim was settled, and the Town will pay the sum of $123,347. Such amount has been accrued as a current liability in the Special Revenue Fund at December 31, 1991. 4. During 1991 the Wappinger Sewer Transmission/Treatment Improvement was formed by the Town for the sole purpose of constructing a sewer line to the Tri-Municipal Sewer plant, plus a one million gallon expansion of said plant. The improvement was formed in consequence of the consent judgment entered against the Town by the Department of Environmental Conservation to abate the pollution at the Oakwood Knolls Sewer Treatment plant. The consequence thereof, a sewer trunk line must be constructed. To construct this sewer line, various easements must be obtained by the Town. The Town has authorized the issuance of $17,020,000 in bonds to pay for the construction of the sewer line and the sewer expansion. .. 22 ...