The URL can be used to link to this page

2006-12-31 - - - .. .. .. TOWN OF WAPPINGER, NEW YORK .. FINANCIAL STATEMENTS - AS OF AND FOR THE YEAR ENDED DECEMBER 31.2006 .. .. .. .. .. .. .. .. - .... .. .. .. .. .. TOWN OF WAPPINGER, NEW YORK TABLE OF CONTENTS DECEMBER 31. 2006 .. .. DESCRIPTION PAGE (S) . Independent Auditors' Report ............ ..................................... ............................. ........ ............. ... 1-2 .. Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance With Government Auditing Standards .................................................................. 3-4 .. .. Management's Discussion and Analysis (unaudited) For The Year Ended December 31, 2006 ...............................................................................5-11 BASIC FINANCIAL STATEMENTS: .. Government-Wide Financial Statements: .. Statement of Net Assets - December 31, 2006. . . . . . . . .. . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... .. ................... ......... ........... ...... .... ..12 .. Statement of Activities - For the Year Ended December 31, 2006 ............................................................................................................... 13 -14 .. Fund Financial Statements: Balance Sheet - Governmental Funds - December 31,2006.................................................. 15-16 .. Reconciliation of Governmental Funds Balance Sheet To The Statement of Net Assets - December 31, 2006..............................................................17 .. .. Statement of Revenues, Expenditures and Changes In Fund Balances- Governmental Funds - For the Year Ended December 31, 2006...... .......................... ..................... ............... ........... 18-19 .. .. .. .. .. .. .. Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities - For the Year Ended December 31,2006............................................20 .. Statement of Net Assets - Fiduciary Funds - December 31,2006 ................................... .21 Notes to the Basic Financial Statements ..................................................................... ............. 22-43 .. REQUIRED SUPPLEMENTAL INFORMATION: - Exhibit I Budgetary Comparison Schedule - General Fund, Highway Fund and Sewer Fund For the Year Ended December 31, 2006.............................................................................. 44-46 .. OTHER SUPPLEMENTAL INFORMATION: .. Exhibit II Combining Balance Sheet - Non-Major - Governmental Funds - December 31, 2006 ..............................................................................47 Exhibit III .. Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Non-Major Governmental Funds For the Year Ended December 31, 2006.........................................................................48 .. .. .. .. - .. .. .. ~~ Beechwood Office Park 2678 SOllth Road SEDORE & COMPANY Poughkeepsie, NY 12601 1,'1845.485.5510 f.1\ 845.485.5547 II,MIII 845.897.4810 www.sedoreco.com .. .. Certified Public Accoulltilllts, pc. .. INDEPENDENT AUDITORS' REPORT ),1111'" f. .\ir/o1'i', j;:, (YI Mrllk S. OS//lliMII, U;.J ;""I<'S r 1.1'111'710. F, Chi 1.iud'i\!. !-ltl1ff/igilU, (J~.~ A'''l'm f //,ll7it'll. Cp.1 /rtf/ty L Bi'IIli'lI, U~'1 .. .. .. To the Supervisor and Members of the Town Board Town of Wappinger, New York 20 Middlebush Road Wappingers Falls, New York 12590 .. .. We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Wappinger, New York, as of and for the year ended December 31, 2006, as listed in the Table of Contents. These financial statements are the responsibility of the Town of Wappinger, New York's management. Our responsibility is to express opinions on these basic financial statements based on our audit. .. .. We conducted our audit in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. .. .. .. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Wappinger, New York, as of December 31, 2007, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in conformity with accounting principles generally accepted in the United States of America. .. .. Management's Discussion and Analysis and Exhibit I, budgetary comparison information, listed in the Table of Contents, are not a required part of the basic financial statements but are supplementary information required by accounting principles generally accepted in the United States of America. We applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. .. .. .. Large Firm Expertise", Local Firm Service 1 - - - Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town of Wappinger, New York's basic financial statements. The combining non-major fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining non-major fund financial statements have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. - .. - In accordance with Government Auditing Standards, we have also issued our report dated December 14,2007 on our consideration of the Town of Wappinger, New York's internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contract and grants. The report on compliance with laws and regulations and internal control over financial reporting is an integral part of an audit performed in accordance with Government Auditing Standards and, in considering the results of our audit, this report should be read in conjunction the auditor's report on the basic financial statements. ~ o-~~/c.Q1t5 Poughkeepsie, New Yark' () December 14,2007 - - - - - - - - .. - .. .. 2 - .. ~~ Beechwood Office Park 2(,78 Sourh Road .. SEDORE & COMPANY Poughkeepsie, NY 12(,0] r,1 845.485.5510 Lt\ 845.485.5547 .. Certified Pu/;lic ACCOUlltflllt.>', l' C. ri,H,1! 845.897.4810 www.sedoreco.com .. }IiIlCS L S"do,,', j;:, C/~l :\I,zlk S OSZdJII'oZIl, C/~i ;'IIIII'S I: lell!'!;", /1:, (J~.I l;lIfl" :\I. f!.lIlill~~oIl1, CPI karClI I' I /rlJ!.IClI, (J~il .. .. REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS L Brllll'il, CP.] .. .. To the Supervisor and Members of the Town Board Town of Wappinger, New York 20 Middlebush Road Wappingers Falls, New York 12590 .. .. We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Wappinger, New York as of and for the year ended December 31, 2006, which collectively comprise the Town of Wappinger, New York's basic financial statements and have issued our report thereon dated December 14, 2007. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards, issued by the Comptroller General of the United States. .. .. .. Internal Control Over Financial ReDortine: .. In planning and performing our audit, we considered the Town of Wappinger's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town of Wappinger, New York's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the Town of Wappinger, New York's internal control over financial reporting. .. .. A control deficiency exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of control deficiencies, that adversely affects the Town of Wappinger's ability to initiate, authorize, record, process, or report financial data reliably in accordance with generally accepted accounting principles such that there is more that a remote likelihood that a misstatement of the .. .. ... Large Firm Expertise ~ Local Firm Service 3 ill .. Town of Wappinger's financial statements that is more than consequential will not be prevented or detected by the Town's internal control. .. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in a more than remote likelihood that a material misstatement of the financial statements will not be prevented or detected by the Town of Wappinger's internal control. .. .. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting and its operation that we consider to be material weaknesses, as defined above. .. - We noted others findings involving the internal control over financial reporting that we have reported to the management of the Town of Wappinger, New York in a separate letter dated December 14,2007. .. Compliance and Other Matters .. As part of obtaining reasonable assurance about whether the Town of Wappinger, New York's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. .. - We noted certain other matters that we reported to management of the Town of Wappinger in a separate letter dated December 14, 2007. - .. This report is intended solely for the information and use of the Supervisor, Town Board, Comptroller, management, and pass-through entities and is not intended to be and should not be used by anyone other than these specified parties. - Se~ a- ~/Y1.u\ I L~ A'~ Poughkeepsie, Newv~or~-- '--d December 14,2007 ill ill .. .. 4 .. .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2006 (Un-audited) .. 1. Overview of the Financial Statements .. These Audited Financial Statements consist of five parts. The Independent Auditors Report on our Financial Statements, Management's Discussion and Analysis (this section), Government Wide Financial Statements, Fund Financial Statements and Notes to the Financial Statements. .. .. -Government-Wide Financial Statements provide both long term and short term information about the Town's overall financial status. They report information about the Town as a whole using accounting methods similar to private sector companies. .. -Fund Financial Statements focus on the individual parts of Town government, reporting the Town's operations in more detail than the Government -Wide Financial Statements. They focus on the most significant or ''major'' funds-not the Town as a whole. See Note A in the notes to the financial statements for information regarding individual types of funds. .. .. -Notes to the Financial Statements provide further explanation and support for the information contained in the Financial Statements. 2. Financial Analysis of the Town as a whole .. Assets 2006 2005 Change .. Non-Capital $ 9,278,461 $ 9,499,380 $ (220,919) Capital 25,239,062 24,245,927 993,135 Total Assets $ 34,517.523 $ 33.745.307 $ 772.216 .. Liabilitie s Current $ 17,464,707 $ 16,666,390 $ 798,317 .. Non-Current 20,126,225 22,037,376 (1,911,151) Total Liabilities 37,590,932 38,703,766 (1,112,834) . Net Assets: Capital 8,584,136 5,124,127 3,460,009 Restricted 442,686 42,165 400,521 . Unrestricted (12,100,231) (10,124,751) (1,975,480) Total Net Assets (3,073,409) (4,958,459) 1,885,050 - Total Liabilities and Net Assets $ 34.517.523 $ 33.745.307 $ 772.216 .. .. 5 .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2006, Cont'd. (Un-audited) Revenues 2006 2005 Change .. .. .. Program Fines, Fees & Charges Operating Grants Capital Grants General Revenues Property Taxes Other Taxes Investment Earnings State Aid Other Revenues Total Revenues Expenses General Government Support Public Safety Health Transportation Economic Assistance Culture and Recreation Home and Community Service Other .. .. .. .. .. .. .. .. Total Expenses Change in Net Assets Governmental Funds: .. GENERAL FUND $ 3,382,393 $ 17,923 123,001 5,697,569 2,827,818 861,078 286,829 144,564 13,341,175 2,641,444 600,189 419,074 2,249,411 24,489 952,211 3,081,496 1,487,811 11,456,125 $ 1,885.050 $ 2,351,165 166,084 108,257 5,579,837 3,195,552 686,716 233,806 579,331 12,900,748 3,237,827 664,051 416,882 2,432,156 30,308 1,058,234 2,568,843 1,364,797 11,773,098 1,127.650 $ 1,031,228 (148,161) 14,744 117,732 (367,734) 174,362 53,023 (434,767) 440,427 (596,383) (63,862) 2,192 (182,745) (5,819) (106,023) 512,653 123,014 (316,973) 757.400 The majority of activity for the Town is presented in the General Fund. Fund Balance for the .. General Fund increased by $218,117 from 2005 to 2006. The major reason for the increase was the decrease in expenditures, primarily in the category of general government support. The fluctuations in the budget are explained in the revenue and expense summary above. .. ... Total General Fund Equity for 2006 is approximately $1,320,083 and $234,396 of this is unappropriated fund balance. .. .. 6 .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2006, Cont'd. (Un-audited) .. .. .. The Following Charts describe significant categories of General Fund revenues and expenses: .. General Fund Revenues 2006 .. 24% .. l1li .. .. 24% .. .. . Property Taxes & Tax Items . State Aid o Sales and Franchise Tax 5% o Interest & Earnings . Departmental Income 5% . Licenses and Permits . All Other .. General Fund Expenses 2006 .. 6% .. - 12% .. 12% 4% .. . General goverrnnent support . Public safety o Transportation o Culture and Recreation . Home and community sefVlces . Employee benefits . Debt Service 51 All Other 7 III ... .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2006, Cont'd. (Un-audited) .. HIGHWAY FUND .. The Highway Fund ended the year with $19,275 Fund Balance. The Highway Fund's Fund Balance will continue to be monitored closely. .. The following charts describe the significant categories of Highway Fund revenues and expenses: .. .. Highway Fund Revenues 2006 .. 5% 1% .. . Property Taxes . Transfers from Other Funds o State Aid o Other Revenue .. .. WI .. - .. ... .. .. 8 . . . MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31,2006, Cont'd. (Un-audited) . . Highway Fund Expenses 2006 . Street Maintenance . 12% . Permanent Road Improverrents o Snow Removal 20% 41% . . o Other . . MachineI)' Purchase and Maintenance . Employee Benefits . 13% - WATER FUND . The Town operated twelve water districts during 2006 with an overall Fund Balance of $193,632. Operating revenues totaled $1,623,506 with the expenses totaling $1,692,448 resulting in excess (deficiency) of revenues over (under) expenditures in the amount of ($68,942). The Town has appropriated Fund Balance in the amount of$102,781 for the 2007 Budget and will continue to monitor available Fund Balance. - - SEWER FUND . The Town operated nine Sewer Districts during 2006 with an overall Fund Balance $1,968,876. Operating revenues totaled $3,346,260 with the expenses totaling $3,903,544 resulting in excess (deficiency) of revenues over (under) expenditures in the amount of ($557,284). The Town has appropriated Fund balance in the amount of $585,733 for the 2007 Budget. - - - - 9 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31,2006, Cont'd. (Un-audited) .. BUDGET ARY HIGHLIGHTS .. The Town Budget is adopted in OctoberlNovember for the following year and is modified throughout the year as necessary. Variances in budgetary revenues and expenditures have been explained in the paragraphs above. .. 3. Activities regarding capital assets, long and short term debt .. The Town spent over two million dollars on fifteen capital projects in 2006. The top five projects were: the Dutchess County Airport Landfill Closure Project, the Highway Blacktop Maintainance Project, the Highway Construction and Maintainance Equipment 2006 Project, the Multi-Town Revaluation Project and the Carnwath (Greystone) Renovation Project. The expenditures for these projects accounted for seventy-seven percent (77%) of the total capital expenditures. .. - .. The Dutchess County Airport Landfill Closure project began with an intermunicipal agreement between five local municipalities dated 1970. The estimated cost to close the landfill is $10,000,000 and the Town of Wappinger's share of these costs is $1,417,208 which has been paid with proceeds of a bond anticipation note. It is expected that the Town will turn this borrowing into a long term serial bond in 2007. - .. The Central Wappinger Water Improvement Area 1999 -2R project has connected six of the Town's water districts to a common source of water. It is expected that the project will be completed in the year 2008. The project expenses are funded entirely by the property owners in the district. Additional bonding to finance the construction of the project took place in 2005 with long term financing to be issued in 2007. Total bonding for the project will be approximately $8,590,000. .. .. The other projects related to purchase of highway equipment, town-wide road blacktopping and drainage, technology project, fuel tank replacements, and water and sewer district improvements, other than grant revenue, are funded by the General, Highway Funds or by the property owners in each water and sewer district. Future bonding is expected to be issued to fund these projects. Please review the notes to the financial statements for information regarding these issues. .. .. - - .. 10 .. .. .. MANAGEMENT'S DISCUSSION AND ANALYSIS Required Supplemental Information For the Year Ended December 31, 2006, Cont'd. (Un-audited) - Long Term Debt .. The Town received a Moody's rating of Aa3 when it issued new bonds in 2003 and has maintained this rating. This is the fourth highest rating possible and the highest for a municipality in Dutchess County. - - Total long term debt at the end of2006 was $21,275,000. Only, $3,859,718 of this balance is General Fund debt. The majority of the Town's debt relates to its water and sewer districts amounting to $1,080,258 and $16,335,024, respectively. Water and sewer debt is paid by the property owners in the respective districts. - Short Term Debt - The Town currently has four Bond Anticipation Notes (BANs) outstanding. The Central Wappinger Water Improvement Area 1999-2R Capital project has an outstanding BAN totaling $6.97 million. The long term financing for the Central Wappinger Water Improvement Area 1999-2R Water District will take place in 2007. There are three other BANs totaling $6,525,818 funding various projects within the Town. Please review the notes to the financial statements for further information regarding short- term debt. - - 4. Currently Known Facts Bearing on the Future - The Town of Wappinger is participating in a revaluation project with several other Southern Dutchess Municipalities. The purpose of revaluation is to bring present property assessments to full valuation. Full valuation will provide equitable tax distribution among all homeowners within the Town, County and the shared school districts. The project was awarded in 2004 and will require three years to complete. Final valuations are expected to be in place by the March 1 st, 2007 valuation date. The total project cost to the town has been budgeted at $575,000. These funds have been financed by a five year Bond Anticipation Note. Once full valuation has been established the Southern Dutchess Consortium has agreed to undergo annual reassessment to maintain full valuation. State funding is currently available to assist with this maintenance cost. - - .. lflii - - - 11 TOWN OF WAPPINGER, NEW YORK STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31.2006 .. III OPERATING III CHARGES GRANTS AND FUNCTIONS/PROGRAMS EXPENSES FOR SERVICES CONTRIBUTIONS Governmental Activities: - General government support $ 2,641,444 $ 11,773 $ 9,278 Public safety 600,189 447,541 Health 419,074 3,620 - Transportation 2,249,411 2,438 Economic assistance & opportunity 24,489 Culture and recreation 952,211 529,466 8,645 .. Home and community services 3,081,496 2,387,555 Interest on long-term debt 1,487,811 Total governmental activities 11,456,125 3,382,393 17,923 .. General revenues Taxes: Real property taxes Real property tax items Sales tax Mortgage tax Franchise taxes Unrestricted investment earnings Grants and contributions not restricted to specific programs Special item-Gain on sale of property and compensation for loss Miscellaneous Total general revenues, special items and transfers III .. .. III Change in net assets III Net assets - beginning Net assets - ending .. III .. III III The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. III 13 .. .. .. NET (EXPENSE) REVENUE AND CHANGES IN NET ASSETS .. CAPITAL GRANTS AND GOVERNMENTAL CONTRIBUTIONS ACTMTIES .. $ $ (2,620,393) (152,648) .. (415,454) 123,001 (2,123,972) (24,489) .. (414,100) (693,941) (1,487,811) .. 123,001 (7,932,808) .. 5,596,738 100,831 .. 1,197,242 1,360,572 270,004 .. 861,078 286,829 51,336 .. 93,228 9,817,858 .. 1,885,050 (4,958,459) .. $ (3,073,409) .. .. .. ... .. 14 .. TOWN OF WAPPINGER, NEW YORK .. BALANCE SHEET GOVERNMENTAL FUNDS DECEMBER 31.2006 .. GENERAL HIGHWAY SEWER .. FUND FUND FUND ASSETS Cash and cash equivalents $ 1,301,747 $ 308,421 $ 1,252,335 .. Receivables: Charges for services 462,694 Other 184,730 4,432 - Deposits with other governments Due from other funds 658,402 71,940 610,296 Due from other governments 404,229 4,160 - State and federal receivable 285,921 Inventory, at cost 40,987 Prepaid expenses 10,067 6,673 .. Total assets $ 2,845,096 $ 436,613 $ 2,325,325 - LIABILITIES AND FUND EQUITY - LIABILITIES Accounts payable $ 450,424 $ 224,202 $ 280,653 Accrued liabilities 20,122 10,359 .. Retainage payable 983 Bond anticipation notes payable Due to other funds 750,602 182,777 75,796 - Due to other governments Deferred revenues 2,882 Total liabilities 1,225,013 417,338 356,449 .. FUND BALANCE Fund balance (deficit): .. Reserved for: Prepaids and inventory 10,067 47,660 Miscellaneous 402,900 . Unreserved: Recreation 442,686 Subsequent year's expenditures 230,034 585,733 .. Undesignated 534,396 (28,385) 1,383,143 Total fund balance 1,620,083 19,275 1,968,876 .. Total liabilities and fund balance $ 2,845,096 $ 436,613 $ 2,325,325 .. The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. - 15 II1II . . CAPITAL NON- TOTAL . PROJECTS MAJOR GOVERNMENTAL FUND FUNDS FUNDS .. $ 4,452,967 $ 253,094 $ 7,568,564 270,709 733,403 ... 229 189,391 5,000 5,000 18,767 903 1,360,308 .. 408,389 30,066 315,987 40,987 .. 16,740 $ 4,507,029 $ 524,706 $ 10,638,769 ... .. $ 387,666 $ 216,709 $ 1,559,654 6 30,487 III 41,479 42,462 13,495,818 13,495,818 314,908 36,225 1,360,308 .. 10,000 10,000 2,882 14,249,877 252,934 16,501,611 III IIlIIII 57,727 . 402,900 442,686 .. 114,934 930,701 (9,742,848) 156,838 (7,696,856) (9,742,848) 271,772 (5,862,842) ... $ 4,507,029 $ 524,706 $ 10,638,769 ... IIlIIII 16 ... .. TOWN OF WAPPINGER, NEW YORK RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS DECEMBER 31. 2006 .. .. .. Total fund equity for governmental funds $ (5,862,842) Total net assets reported for governmental activities in the statement .. of net assets are different because: Capital assets used in governmental activities are not .. financial resources and therefore are not reported in the funds. 25,239,062 Long-term liabilities, including bonds payable, compensated .. absences, judgement and claims and landfill remediation liabilities are not due and payable in the current period and therefore are not reported in the funds. .. (21,960,648) .. Accrued interest is not reported in the funds. (488,981 ) Total net assets of governmental activities $ (3,073,409) .. .. .. .. .. . .. .. The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. .. .. 17 .. .. CAPITAL NON- .. PROJECTS MAJOR TOTAL FUND FUNDS FUNDS .. $ $ 1,073,590 $ 5,596,738 54 100,831 1,467,246 .. 867,672 2,944,904 2,438 161,317 20,500 861,078 .. 298,266 149,385 19,122 10,891 51,336 .. 72,230 94,229 1,774,725 252,669 1,972,707 13,341,176 .. 717,007 21,320 2,843,180 .. 426,758 413,080 415,950 502,018 32,296 2,222,839 . 24,489 702,021 1,127,498 931,755 4,262,715 . 6,782 1,159,258 754,984 4,096,449 2,346,523 2,160,217 16,153,659 .. (2,093,854) (187,510) (2,812,483) .. 844,500 844,500 .. 24,500 95,529 626,991 (290,670) (21,321) (626,991) 578,330 74,208 844,500 . (1,515,524) (113,302) (1,967,983) . (8,227,324) 385,074 (3,894,859) - $ (9,742,848) $ 271,772 $ (5,862,842) - 19 - .. TOWN OF WAPPINGER, NEW YORK RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTMTIES FOR THE YEAR ENDED DECEMBER 31.2006 .. .. Net change in fund balance - total government funds .. The change in net assets reported for governmental activities in the statement of activities is different because: .. - Governmental funds report all capital outlays as expenditures. However, in the statement of activities, the cost of certain assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation expense in the current period. - - Bond proceeds are reported on the financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net assets, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal is an expenditure in the governmental funds but reduces the liability in the statement of net assets. - - Debt issued: Bond anticipation note redeemed Repayments: Bond anticipation note principal Bond principal .. - In the statement of activities, interest is accrued on outstanding bonds, whereas in governmental funds, an interest expenditure is reported when due. This amount represents the change between what was paid and what was accrued through 2006. - - Some expenses reported in the statement of activities, such as compensated absences and landfill liabilities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. This amount represents the change between what was paid and what was accrued through 2006. - - Net change in net assets of governmental activities - .. (844,500) 844,500 1,790,000 The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements. - $ (1,967,983) 993,133 1,790,000 (25,861 ) 1,095,761 $ 1,885,050 20 - TOWN OF WAPPINGER, NEW YORK STATEMENT OF FIDUCIARY NET ASSETS FIDUCIARY FUND DECEMBER 31. 2006 - - AGENCY FUNDS - ASSETS Cash and cash equivalents $ 681,504 .. Total assets 681,504 .. LIABILITIES .. Escrow funds returnable and other liabilities 681,504 Total liabilities 681,504 .. NET ASSETS .. Total liabilities and net assets $ 681,504 .. .. - - .. .. .. - The accompanying Notes to the Financial Statements should be read in conjunction with these Financial Statements 21 .. .. .. .. III TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31. 2006 III NOTE A - Summary of Shmificant Accountin2 Policies .. The Town of Wappinger, New York ("the Town") was incorporated on May 20, 1875, under the provisions of the State of New York. The Town operates under a Town Board form of government, consisting of a Supervisor and four Councilmen/women. The Supervisor serves as the Chief Executive Officer and as the Chief Fiscal Officer of the Town. .. The Town provides the following services: highway maintenance, water, sewer, planning, zoning, building and safety inspection, lighting, and culture and recreation. The Town's financial statements are prepared in accordance with accounting principles generally accepted in the United States of America as applied to governmental units (GAAP). The Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (Statements and Interpretations). The Town is also required to follow the pronouncements of the Financial Accounting Standards Board (FASB) issued through November 30, 1989 (when applicable) that do not conflict with or contradict GASB pronouncements, .in preparing its government-wide financial statements. The more significant accounting policies established by GAAP and used by the Town in preparing its government-wide and fund financial statements are discussed below. - - .. .. 1. The Reportin2 Entitv .. The Town, for financial purposes, includes all of the funds relevant to the operations of the Town of Wappinger, New York. The financial statements include organizations, function and activities that are controlled by or dependent upon the Town. Control or dependence is determined on the basis of budget adoption, taxing authority, funding and appointment of the respective governing board. Under these criteria, no other entities are included in the Town's financial statements. .. .. 2. Basic Financial Statements - Government-Wide Statements III The Town's basic financial statements include both government-wide (reporting the Town as a whole) and fund financial statements (reporting the Town's major funds). Both the government-wide and fund financial statements categorize primary activities as either governmental or business type activities. The Town's parks and recreation, public works, and general administrative services are classified as governmental activities. The Town's water services are also classified as governmental activities since user fees are not intended to cover all costs including depreciation. III III .. .. 22 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE A - Summary of Shmificant Accountine: Policies (Continued) 2. Basic Financial Statements - Government-Wide Statements (Cont'd) .. In the government-wide Statement of Net Assets, the governmental activities columns is presented on a consolidated basis by column, and is reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The Town's net assets are reported in three parts-invested in capital assets, net of related debt; restricted net assets; and unrestricted net assets. The Town first utilizes restricted resources to finance qualifying activities. .. .. .. The government-wide Statement of Activities reports both the gross and net cost of each of the Town's functions or activities. The functions are also supported by general government revenues (property and sales taxes, certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of Activities reduces gross expenses (including depreciation) by related program revenues, operating and capital grants. Program revenues must be directly associated with the function (public works, community and youth services, etc.). Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reflects capital-specific grants. .. .. .. The net costs are normally covered by general revenue (property, sales or mortgage taxes, intergovernmental revenues, interest income, etc). .. This government-wide focus is more on the sustainability of the Town as an entity and the change in the Town's net assets resulting from the current year's activities. .. 3. Basic Financial Statements - Fund Financial Statements .. The financial transactions of the Town are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self- balancing accounts that comprises its assets, liabilities, reserves, fund equity, revenues and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the Town or meets the following criteria: .. .. .. a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental fund are at least 10 percent of the corresponding total for all funds of that category or type; and .. 23 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE A - Summary of Si21lificant Accountim! Policies (Continued) 3. Basic Financial Statements - Fund Financial Statements (Cont'd) .. .. b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. The following fund types are used by the Town: .. A. Governmental Funds .. The focus of the governmental funds' measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. .. The following is a description of the governmental funds ofthe Town: General fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. The General Fund is considered a major fund and is presented separately. Highway fund is used to record the revenues and expenditures related to the maintenance of Town roadways. The Highway Fund is considered a major fund and is presented separately. 1. .. 2. .. .. 3. Sewer Fund is used to record the revenues and expenditures related to the delivery of sewer services to the Town's customers. The Sewer Fund is considered a major fund and is presented separately. .. .. 4. Capital projects fund is used to account for financial resources to be used for the acquisition and construction of major capital facilities. The Capital Projects Fund is considered a major fund and is presented separately. However, no budgetary comparison schedule is presented as required supplemental information, as the Town is not legally required to adopt an annual budget for the Capital Projects Fund. .. .. 5. Non-major funds include those that are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. These include the Water, Lighting and Miscellaneous (Ambulance) Funds. .. .. 24 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE A - Summary of Shroificant Accountin2 Policies (Continued) .. B. Fiduciary Funds Fiduciary Funds are used to report assets held in a trustee or agency capacity for others and therefore are not available to support Town programs. The reporting focus is on net assets and changes in net assets and are reported using accounting principles similar to proprietary funds. .. .. The Town's fiduciary funds are presented in the fiduciary fund financial statements. Since by definition these assets are being held for the benefit of a third party and cannot be used to address activities or obligations of the government, these funds are not incorporated into the government-wide statements. .. 4. Basis of Accountin2 .. Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. .. A. Accrual .. The governmental activities in the government-wide financial statements and fiduciary fund financial statements are presented on the accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. B. Modified Accrual .. .. The governmental funds financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual; i.e., both measurable and available. "Available" means collectible within the current period or within 60 days after year- end. Expenditures are generally recognized under the modified accrual basis of accounting when the related liability is incurred. The exception to this general rule is that principal and interest on general obligation long-term debt, if any, is recognized when due. .. .. .. .. .. 25 .. - - . TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2006 - NOTE A - Summary of Shmificant Accountin2 Policies (Continued) 5. Financial Statement Amounts - A. Cash and Investments - Cash includes amounts in demand and time deposits, as well as, short-term investments. State statutes and the Town's own written investment policy govern the investment policies of the Town. The Town may invest its funds in banks or trust companies authorized to do business in the State of New York, as well as investing in obligations of the U. S. Treasury, U.S. Agencies, and obligations of the State of New York and its political subdivisions. Deposits not covered by Federal Deposit Insurance, are collateralized by the banking institutions with investments governed under state statutes. Short-term investments consist of investments in repurchase agreements. The repurchase agreements involve purchases by a broker of portfolio securities concurrently with an agreement by the broker to sell the same securities at a later date at a fixed price. Generally, the effect of such a transaction is that the Town can invest its excess cash balances at competitive interest rates. The Town reports its repurchase agreements at market value, which approximates cost plus accrued interest. . . . - The cash and investments of the Town at December 31, 2006, are as follows: . - CAPITAL NON- ~ mGHWAY SI.Wm PROJECIS MAJOR FUND FUND FUND FUND FUNDS lOTAL Non-Interest Bearing Accounts $ 800 $ - $ - $ - $ - $ 800 Interest Bearing Accounts 1.300.947 308.421 1.252.335 4.452.967 253.094 7.567.764 lOTALS $ 1,301,747 $ 308,421 $ 1,252,335 $ 4,452,967 $ 253,094 $ 7,568,564 - - - Custodial credit risk is the risk that in the event of a bank failure, the Town's deposits may not be returned to it. While the Town does not have a specific policy for custodial credit risk, New York State statues govern the Town's investment policies, as discussed previously in these Notes. Governmental Accounting Standards Board Statement No. 40 Deposit and Investment Risk Disclosure directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository insurance, or collateralized by securities held by the Town or its agent in the Town's name. The Town's cash balances were fully collateralized with securities held by the Town's third party custodian and not subject to custodial credit risk. . - - 26 - - - - TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2006 . NOTE A - Summary of Sbmificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) - B. Inventories - Inventories consist of significant expendable supplies primarily sand and road salt and are carried at cost. . C. Capital Assets Capital assets purchased or acquired with an original cost of $500 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at fair market value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-line basis over the following estimated useful lives: - - - Buildings Infrastructure - Water & Sewer Infrastructure - Roads Machinery and equipment Improvements 15-40 years 40 years 15 years 5-15 years 10-30 years . . GASB Statement No. 34 requires the Town to report and depreciate new infrastructure assets effective with the beginning of the current year. Infrastructure assets include roads, bridges, underground pipe (other than related to utilities), traffic signals, etc. These infrastructure assets are likely to be the largest asset class of the Town. Neither their historical cost nor related depreciation has historically been reported in the financial statements. The retroactive reporting of infrastructure is subject to an extended implementation period and is first effective for fiscal years ending in 2007. The Town has implemented the general provisions of GASB Statement No. 34 in 2003 and expects to implement the retroactive infrastructure provisions in the year ending December 31, 2007. - - - - - - 27 - - .. - TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2006 - NOTE A - Summary of Sbmificant Accountine: Policies (Continued) 5. Financial Statement Amounts (Cont'd) - D. Accumulated Comoensated Absences - It is the Town's policy to permit employees of the Highway Department to accumulate a limited amount of earned but unused vacation and sick leave, which will be paid to employees upon separation from the Town's service. Other Town employees may accumulate a limited amount of unused compensated absences as well. However, for other Town employees, only unused vacation leave will be paid upon separation from the Town's service. The Town accrues a liability for compensated absences, which meet the following criteria: - - 1. The Town's obligations relating to employees' rights to compensation for future absences is attributable to employee's services already rendered; - 2. The obligation relates to rights that vest or accumulate; - 3. Payment of the compensation is probable; 4. The amount can be reasonably estimated. .. In accordance with the above criteria, the Town has accrued a liability for vacation pay, which has been earned and not taken by Town employees as of December 31, 2006, in the amount of $176,250. The non-current portion (the amount estimated to be used in subsequent fiscal years) for governmental funds is maintained separately and represents a reconciling item between the fund and government-wide presentations. It is anticipated that none of these liabilities will be liquidated with expendable available financial resources. - .. E. Interfund Activitv .. Interfund activity is reported as either loans, services provided, reimbursements or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Transfers between governmental or proprietary funds are netted as part of the reconciliation to the government-wide financial statements. - .. - - 28 - .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE A - Summary of Si2D.ificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) .. F. Bud2ets .. The Town employs formal budgetary accounting as a management tool, on a basis consistent with generally accepted accounting procedures. During the year, a budget was adopted and modified by the Town Council for the General Fund and Non-major Funds. Budgetary controls are established or adopted for the Capital Projects Fund on a project basis. Unused appropriations of the annually budgeted funds lapse at the end of the year. .. .. G. Pension Plans Plan Description .. The Town of Wappinger participates in the New York State and Local Employees' Retirement System (ERS), the New York State and Local Police and Fire Retirement System (PFRS) and the Public Employees' Group Life Insurance Plan (Systems). These are cost-sharing multiple-employer retirement systems. The Systems provide retirement benefits as well as death and disability benefits. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law (NYSRSSL). .. .. .. As set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt and may amend rules and regulations for the administration and transaction of the business of the Systems and for the custody and control of their funds. The Systems issue a publicly available financial report that includes financial statements and required supplementary information. That report may be obtained by writing to the New York State and Local Retirement Systems, 110 State Street, Albany, New York 12244. .. .. 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. - .. 29 .. ,. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 ,. NOTE A - Summary of Sbmificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) ,. G. Pension Plans: Plan Description (Cont'd) The Town of Wappinger is required to contribute at an actuarially determined rate. The required contributions for the current year and two preceding years were: .. ERS ,. ,. 2006 2005 2004 $ $ $ 263,931 238,735 210,000 .. The Town's contributions made to the Systems were equal to or in excess of 100 percent of the contributions required for each year. H. Post Emplovment Benefits .. In addition to providing pension benefits, the Town provides health insurance coverage and survivor benefits for retired employees and their survivors. Substantially all of the Town employees may become eligible for these benefits if they reach normal retirement age while working for the Town. Health care benefits and survivors benefits are provided through an insurance company whose premiums are based on the benefits paid during the year. The Town recognizes the cost of providing benefits by recording its share of insurance premiums as an expenditure in the year paid. .. .. .. For the year of 2006, $60,091 was paid on behalf of seventeen retirees, and recorded as expenditures in the General and Special Revenue Funds. I. Property Taxes .. .. The Town submits an approved budget to the Dutchess County Commissioner of Finance by December 5th of the previous year. The County then establishes the warrant for the year, which is due and payable on or about January I of each year. The Town collects the taxes on behalf of the Town and County without penalty through February 28th and with penalties and interest through August 31st. The Town's portion of the taxes is recognized and transferred prior to the County's portion. Therefore, the Town receives its entire tax, leaving the unpaids to be collected by the County Commissioner of Finance. .. .. .. 30 .. .. - .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE A - Summary of Sh!:nificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) J. Lon2- Term Liabilities .. .. Long-Term Debt is recognized as a liability of a governmental fund when due, or when resources have been accumulated for payment early in the following year. For other long-term obligations, only that portion expected to be financed from expendable available financial resources is reported as a fund liability of a governmental fund. The remaining portion of such obligations is only reported in the statement of net assets, Long-Term Liabilities. .. .. K. Reservations of Fund Equity The Town records indicate that portions of the fund equity are segregated for specific future uses. The following details the description and amounts of the reserves used by the Town: .. .. BAlANCEAT 12/31/06 .. General FUnd Reserved for Recreation Reserved for Prepaids and Inventory Reserved for Miscellaneous: Inspection Fees Total General Fund $ 442,686 10,067 - 402.900 855.653 .. HghWlyFUnd Reserved for Prepaids and Inventory 47.660 .. lOTAL R.JND BAIANCERl1SERVIS $ 903,313 .. .. .. .. 31 .. .. - .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE A - Summary of Shmificant Accountin2 Policies (Continued) 5. Financial Statement Amounts (Cont'd) .. L. Risk Mana2ement The Town of Wappinger assumes the liability for most risk including, but not limited to, property damage and personal injury liability. Such risks are covered by the purchase of commercial insurance. Judgments and claims are recorded when it is probable that an asset has been impaired or a liability has been incurred and the amount of loss can be reasonably estimated. Workers compensation coverage is provided through a retrospective policy, wherein premiums are recorded based on the ultimate cost of the experience to date of workers in similar occupations. The Town does not estimate claims, which may have occurred but are not reported in areas where the Town is not insured. - .. .. M. Use of Estimates - - The preparation of basic financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the amounts reported in the basic financial statements and the accompanying notes. Actual results could differ from those estimates. - NOTE B - Other Receivables Other Receivables at December 31, 2006, consist of the following: iIIII CAPITAL NON ~ SEMR IDGHWAY PROJOCIS MAJOR - FlJ.ND FIND FIND FlJ.ND FINDS WTAL Accounts Receivable $ 178,861 $ - $ 4,432 $ 229 $ - $ 183,522 .. Rents Receivable 462,694 270,700 733,403 WTALS $ 178,861 $ 462,694 $ 4,432 $ 229 $ 270,709 $ 916,925 iIIII .. .. .. 32 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE C - Interfund Receivables and Pavables and Transfers The following is a summary of amounts due from and due to other funds, as of December 31, 2006. These interfund balances have been eliminated as part of the aggregation of fund balances. Such balances arise through the use of a pooled cash disbursement account and the temporary funding of capital projects. .. .. - AM)lNf AM)lNf FlJND RHEVABLE PAYABLE Gmeral $ 658,402 $ 750,002 Highway 71,940 182,777 Sewer 610,296 75,796 Capita1Projects 18,767 314,908 Non-Major 903 36,225 TOTAlS $ 1,360,308 $ 1,360,308 - .. .. .. TRANSFmS TRANSFmS FlJND IN our Gmeral $ 128,344 $ 315,000 Highway 378,618 Sewer Capital Projects 24,500 290,670 Non-Major 95,529 21,321 TOTAlS $ 626,991 $ 626,991 iIIIIl .. .. .. .. III .. 33 - .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) .. DECEMBER 31.2006 NOTE D - Capital Assets ., The following is a summary of changes and adjustments in the Capital Assets, for the year ended December 31,2006: BALANCE BALANCE .. JANUARY 1, DEOMBER31, 2006 ADDIDONS (DISPOSAlS) 2006 .. Lmd $ 7,782;217 $ $ $ 7,782,217 Buildings 5,589,358 5,589,358 .. hqlrovem:nts Other Than Buildings 726,446 726,446 .. Roads 983,688 (i)(),449 1,584,137 .. Infrastructure 2,227,125 127,516 2,354,641 Machinery & .. Equipm:nt 4,163,564 205,316 (85,670) 4,283,210 Construction in Progress 8,225,123 584,937 8,810,060 .. Total 29,697,521 1,518,218 (85,670) 31,130,069 Less accumulatedreJl'eciation .. Buildings 2,040,254 143,957 2,184,211 hqlrovem:nts Other Than Buildings 547,156 14,364 561,520 .. Roads 118,411 92,072 210,483 Infrastructure 128,549 58,866 187,415 .. Machinery & Equipm:nt 2,617,223 207,023 (76,868) 2,747,378 . Total accunmlated reJl'eciation 5,451,593 516,282 (76,868) 5,891,007 Gl\e~ntal acti\ities caJital assets, net $ 24,245,928 $ 1,001,936 $ (8,802) $ 25,239,062 .. *Depreciation was charged to goveIDIIllntal activities as follows: .. General govemnt support 84,337 Public safety 54,119 Transportation 277,339 .. Culture and recreation 58,154 Hom: and conmmity selVices 42,333 Total dep'eciation expense $ 516,282 34 .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) .. DECEMBER 31.2006 NOTE E - Bond Anticipation Notes Payable .. Bond Anticipation Notes can be used for any purpose for which bonds are authorized, and are generally accounted for in the Capital Projects Fund, since maturities cannot exceed one year. Local finance law allows the notes to be renewed, up to five years for capital purposes and up to .. the period of probable usefulness for assessable improvements, provided that stipulated annual reductions of principal are made. .. The Bond Anticipation Notes outstanding as of December 31,2006, are as follows: AMJlNf OUISTANDING .. ORIGINAL ORIGINAL AT ISSUE M\1lRIIY lNT.EREST AM)lNf D:ocEMB:FR.31, .. PURPOSE DAlE DAlE RAlE OF ISSUE 2006 .. Water 05/03/01 04/27/07 3.6()01o $ 5,150,000 $ 3,485,000 Water 04/29/04 04/27/07 3.60% 2,800,000 3,485,000 Subtotal 7,950,000 6,970,000 .. Master PIan/Tech. 08/12/03 08/09/07 3.72% 175,000 70,000 Recycle Center 08/12/03 08/09/07 3.72% 175,000 122,500 .. Highway Resurface 08/12/03 08/09/07 3.72% 315,000 247,800 G-eystone Fuel Tank 08/12/03 08/09/07 3.72% 200,000 140,000 Highway/Rec Equip. 12/19/02 08/09/07 3.72% 200,000 80,000 .. Water 12/19/02 08/09/07 3.72% 205,000 119,500 Master PIan/Tech. 08/11/04 08/09/07 3.72% 75,000 37,500 .. Highway Resurface 08/11/04 08/09/07 3.72% 315,000 273,000 Water 08/11/04 08/09/07 3.72% 780,000 547,850 Landfill 08/11/04 08/09/07 3.72% 420,000 380,000 .. Highway Equip. 09/29/04 08/09/07 3.72% 240,000 144,000 Revaluation 06102/05 08/09/07 3.72% 575,000 460,000 .. Highway Resurface 06102/05 08/09/07 3.72% 500,000 470,000 Town Vehicles 06102/05 08/09/07 3.72% 123,000 89,400 Water 08/10/05 08/09/07 3.72% 200,000 200,000 .. Highway Resurface 08/10/06 08/09/07 3.72% 1,000,000 1,000,000 Fuel Tanks 12/08/05 08/09/07 3.72% 200,000 200,000 .. Master PIan/Tech. 12/08/05 08/09/07 3.72% 75,000 75,000 Landfill 08/10/06 08/09/07 3.72% 566,900 566,900 Landfill 08/10/05 08/09/07 3.72% 430,368 410,368 .. Subtotal 6,770,268 5,633,818 35 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2006 NOTE E - Bond Anticipation Notes Payable (Continued) .. .. AMJUNT OUISTANDING ORIGINAL ORIGINAL AT ISSIE MATIJRIIY ~T AM>mf DFCEMBFR31, PlRPOSE DAlE DAlE RAlE OF ISSIE 2006 Sewer Irrproverremts 09/21/06 08109/07 3. 00>/0 250,000 250,000 Highway Construction 09/21/06 08109/07 3.00>/0 240,000 240,000 Road Reconstruction 09/21/06 08109/07 3.00>/0 402,000 402,000 Subtotal 892,000 892,000 'IOTALS $ 15,612,268 $ 13,495,818 .. .. .. .. Changes in Bond Anticipation Notes Payable as of December 31, 2006, are as follows: .. BALANCE BALANCE JANUARY 1, NEW DFCEMBFR31, PlRPOSE 2006 ISSUES PAYMENTS 2006 Various Purposes $ 1,818,218 $ 566,900 $ (279,850) $ 2,105,268 Highway 1,920,600 1,642,000 (214,400) 3,348,200 Sewer 250,000 250,000 Water 8,231,100 (438,750) 7,792,350 'IOTALS $ 11,969,918 $ 2,458,900 $ (933,000) $ 13,495,818 .. .. .. .. .. .. .. .. 36 .. .. '. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) .. DECEMBER 31.2006 NOTE F - Lone:-Term Liabilities .. 1. Serial Bonds Serial Bonds may be issued for any object or purpose for which a period of probable usefulness .. has been established. The Serial Bonds Payable, as of December 31, 2006, are as follows: AMJUNT .. OUlSTANDING ORIGINAL FINAL ORIGINAL AT .. ISSm MAruRIIY IN'IlmST AM:>UNT D:EnMBER31, Pl.RPOSE DAlE DAlE RAlE OFISSm 2006 .. Sewer- Tri-Municipal 11/12/92 ce/15/12 5.80%-6.65% $ 4,342,000 $ 1,ce5,000 Sewer- Tri-Municipal 08/07/02 06115/12 2J)(JOIo-4.4()01o 1,718,000 1,075,000 .. Sewer - Tri-Municipal 03/14/02 04/15/21 1.21%-4.98% 9,836,556 7,635,000 Sewer - Tri-Municipal 11/26'02 05/15/15 3.18%-5.99% 8,519,786 4,205,000 Sewer- Tri-Municipal 06'01/95 11/15/15 3.70%-5.55% 2,610,054 1,350,000 .. Water - Fleetwood 07/30/98 10/15/18 3.70%-5.15% 510,000 345,000 Greystone Property .. Purchase 10/01/00 10/01/20 4.75%-6.50% 2,085,000 1,670,000 :Brergency Services Building 06'01/95 11/15/15 3.70%-5.55% 1,275,000 850,000 .. Water 452,732 217,300 Sewer 288,876 143,900 .. Drainage 1,253,392 618,800 10/02/01 08/15/11 3.77% 1,995,000 980,000 Water 564,000 517,958 .. Sewer 905,000 831,124 lighting 785,000 720,918 .. 02/25/03 03/01/23 4.00%-4.50% 2,254,000 2,070,000 TOTALS $ 35,145,396 $ 21,275,000 .. - .. 37 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE F - Lon2- Term Liabilities (Continued) 3. Chan2es .. The changes in the Town's indebtedness during the year ended December 31, 2006, are summarized as follows: .. BAlANCE BAlANCE Al\DlNfS JANUARY 1, DECE\1BliR31, DUEWIIHIN 2006 INCRFASE CDOCRFASEI 2006 ONEYFAR .. Serial Bonds Note F.1 $ 23,065,000 $ - $ (1,790,000) $ 21,275,000 $ 1,830,000 .. Compensated Absences Note A.8 181,271 (5,021) 176,250 Landfill Qosure and Post .. Post Costs Note J 1,520,138 (1,090,740) 429,398 4,423 Judgem:nt & Oaims Note I.1 80,000 80,000 .. TOTALS $ 24,846,409 $ - $ (2,885,761) $ 21,9ro,648 $ 1,834,423 . 4. Debt Service Requirements The annual requirements to amortize bonded debt, as of December 31, 2006, are as follows: .. .. YFARFNDING DFnMB:ER31. PRINCIPAL IN'I'FmST roTAL 2007 $ 1,830,000 $ 974,726 $ 2,804,726 2008 1,875,000 898,090 2,773,090 2009 1,920,000 816,209 2,736;209 2010 1,970,000 728,945 2,698,945 2011 2,015,000 636,512 2,651,512 2012-2016 7,070,000 1,892,754 8,962,754 2017-2021 4,265,000 (i)3,818 4,868,818 2022-2023 330,000 14,975 344,975 roTALS $ 21,275,000 $ 6,566,027 $ 27,841,027 .. .. .. .. .. 38 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31. 2006 .. NOTE G - ODeratim! 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, 2006 amounted to $48,063. At December 31, 2006, the approximate annual operating lease commitments, subject to appropriation of funds, were as follows: .. .. WAR ENDING DJ.iD!MBER31. OP:ERATING LFASFS .. 2007 2008 2009 2010 2011 $ 45,907 42,751 32,419 15,828 1,288 138,193 iIIIII .. Total minirnum leas e paytrents NOTE H - Deficit Fund Balances $ .. Certain Capital Projects had fund equity deficits at the end of the year. Certain of those deficits arose through the funding of expenditures by issuing bond anticipation notes. As these notes are paid, revenue will be recognized and the deficits will be eliminated. There were eighteen such capital projects with accumulated fund equity deficits totaling $9,717,618. In addition, there were five capital projects with accumulated fund equity deficits totaling $579,096, whose expenditures were funded by loans from other funds. .. .. NOTE I - Commitments and Contim!ent Liabilities 1. Lawsuits .. .. The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of the majority of these cases and lawsuits, as determined by the Town Attorney, should not result in material unfavorable settlements. The Town has recorded an estimated liability amounting to $80,000 as Judgment and Claims, representing possible future settlements on tax certiorari cases. .. .. .. 39 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE I - Commitments and Contine:ent Liabilities (Continued) 2. Tri-Municipal Sewer Plant Expansion .. As a result of a consent judgment signed between the Town and the New York State Department of Environmental Conservation, regarding alleged environmental violations, the Town was required to fund construction of a sewer line to the Tri-Municipal Sewer Treatment Plant, plus a one million gallon expansion of said plant. The plant is owned and operated by the Tri- Municipal Sewer Commission, made up of representatives of the Town of Poughkeepsie and the Village of Wappingers Falls. The Town, therefore, does not have ownership rights, nor does it have voting rights on the Commission's governing board. .. .. .. Funding for the project has been provided by two authorizations, for a total estimated project cost of $19,630,054. Through December 31, 2006, $17,189,840 in bonds have been issued through the Environmental Facility Corporation (EFC), and $2,060,414 in Bond Anticipation Notes had been issued. The current outstanding balance on these bonds is $7,725,000. .. Total project costs incurred through December 31, 2002, amounted to $18,590,291. The unspent construction funds are periodically being applied toward the Town's principal and interest payments. .. 3. Tri Municipal Sewer Plant Expansion - Phase IlIA .. In January 1999, the Town Board authorized the Phase 3A Sewer Improvement Project to further expand the Commission's sewage treatment facility, from 2.4 million gallon per day capacity to 3.4 million gallon per day capacity, the costs of which to be funded by the Town. .. The Town estimated construction and related project costs to be $10,400,000, which was increased to $10,900,000 in April 2001. The Town has incurred $10,405,013 in professional fees and project costs to date. The Town initially issued bond anticipation notes through the Environmental Facilities Corporation totaling $10,900,000 to fund project costs. .. .. On March 14, 2002, long-term financing for the project was issued through the New York State Environmental Facilities Corporation in the amount of $9,836,556. Additionally, on March 3, 2003, the Town issued a bond in the amount of $905,000 to cover costs not eligible for bonding on the project through New York State Environmental Facilities Corporation. The current outstanding balance on these bonds is $8,466,124. Included in Deposits with Other Governments, is $5,000, representing cash held by the Tri- Municipal Sewer Commission for project expenditures to be paid by that entity. .. .. - .. 40 .. ... ... - TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 - NOTE I - Commitments and Contin2ent Liabilities (Continued) 4. Central Wappin2er Water Improvement Area 99-2R - In February 2001, the Town Board adopted a Bond Resolution authorizing the issuance of $8,590,000 in serial bonds to pay the costs of water improvement. As of December 31, 2006, the Town has issued $7,950,000 in bond anticipation notes to pay for the costs of aforesaid project. The current outstanding balance on these notes is $6,970,000. - ... The Town is planning to apply for long-term financing for the project through the New York State Environmental Facilities Corporation. - The costs incurred on the project amounted to $7,480,207, as of December 31, 2006. 5. Authorized Debt - As of December 31, 2006, the Town has authorized, but not issued, the following new debt: Authorization Authorized Th-issued .. PURPOSE Date Amount Amount Refunding Bonds 02/01/99 $ 4,700,000 $ 1,430,000 Central Wappinger Water 02/12/01 8,590,000 640,000 Road Inproverrent OS/27/03 3,300,000 1,670,000 CollJ'uter Hardware and Software 03/12/03 550,000 200,000 Camwath pa.nn; CfJ/25/06 325,000 325,000 TOTALS $ 17,465,000 $ 4,265,000 NOTE J - Municipal Landiills 1. Castle Point Landiill ... . . . ... The Town has voluntarily entered into a Consent Order with the New York State Department of Environmental Conservation to close, cap and monitor the landfill at Castle Point. The closing and capping project was completed in 1999. The costs of monitoring, which could be required for up to thirty years after closure, are currently estimated to amount to $48,653. The Town has recorded the long term liability of $44,230 and short term liability of $4,423 in the Statement of Net Assets. The costs of both closure and post closure monitoring are ordinarily recognized over the expected useful life of the landfill. However, since the landfill has stopped accepting refuse and is now closed, any additional costs over the estimate is being recognized as incurred. The Town incurred $4,423 in monitoring costs during 2006. The future costs may be higher due to inflation, changes in technology or subsequent changes in regulations. - .. ... 41 ... - .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. NOTE J - Municipal Landfills (Continued) 2. Pou2hkeepsie- W appin2ers- LaGranee Joint Landfill .. The Town has shared in the monitoring costs of a closed landfill, the Poughkeepsie- Wappinger-LaGrange Joint Landfill. This joint activity includes the City and Town of Poughkeepsie, New York, the Village of Wappingers Falls, New York, the Town of LaGrange, New York and the Town of Wappinger, New York. All costs associated with monitoring are recognized as incurred. The Town's share of monitoring costs, for the year ended December 31, 2006, amounted to $1,482. .. .. .. The following is a summary of unaudited financial information at December 31, 2006, which is included in the separate financial statements available from the Joint Landfill Board of Governors, Town of Poughkeepsie, One Overocker Road, Poughkeepsie, New York, 12603: .. .. Total Assets $ 977,747 Total Uabilities $ Total Venture Equity $ 977,747 Total Revenues $ 245,448 Total Expenditures $ 8,527,825 . . During 2002, violations were documented at the landfill and in 2003 an Order of Consent was issued through the New York State Department of Environmental Conservation to remediate Environmental Conservation Law and New York Codes Rule and Regulations violations. To comply with this order the municipalities need to perform final closure ofthe landfill under current regulations by December 31, 2005 and perform post closure care and monitoring for a minimum of thirty years thereafter. The estimated cost of final closure is $10,000,000. All costs will be borne proportionately by each municipality: the Town of Wappinger's share is 14.1728%. The Town paid $1,014,610 in October 2006 for its share of final closure costs, $402,670 having been paid in prior years and funded with bond anticipation notes. Currently the Town has $1,357,268 in bond anticipation notes outstanding. To partially finance this project the municipalities have applied for a grant through the NYS DEC's LCSAP program to the extent of $2,000,000 which will be refunded to the respective participants when received. .. .. .. .. Post closure and monitoring costs, which will commence in 2008 and continue for 30 years, are estimated to amount to $2,686,450, with the Town's share being $380,745. .. .. 42 .. .. .. .. TOWN OF WAPPINGER, NEW YORK NOTES TO THE FINANCIAL STATEMENTS (CONT'D) DECEMBER 31.2006 .. .. NOTE K - Subsequent Events The Town has issued the following new debt: TYPE ISSUE DAlE MA1lJRl1Y DAlE Rate PURPOSE AWUNT .. .. Bond Anticipation Note 04/26/07 08109/07 3. 6()01o Camwath Reconstruction Fuel Tank ReplaceIreIlt United Wappinger Water Renewal of previously issued Notes $ 925,000 40,000 200,000 .. .. .. 6,905,000 $ 8,070,000 .. In April 2007, the Town received notification of the United States Court of Appeals, Second Circuit's, ruling to reverse the United States District Court for the Southern District decision to award $450,000 in a case contesting the Town's restrictions on land use. However, the legal fees incurred in connection with this appeal have been in dispute. Settlement as to the amount of legal fees due was reached in December 2007, amounting to $295,000. It is the intention of the Town to finance the payment of this settlement through the issuance of serial bonds. .. .. Note L - New Reportine: Standard ... In June 2004, the Governmental Accounting Standards Board (GASB) issued Statement 45 Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than Pensions. This Statement establishes certain new financial reporting requirements for state and local governments throughout the United States. When implemented, it will require the reporting of liabilities pertaining to post employment benefits earned by employees on a current basis. The Town is required to implement this standard for the year ending December 31, 2008. The Town is in the process of implementing the provisions of GASB Statement 45. The implementation ofGASB Statement 45 will have a substantive effect on the Town's government wide financial position. However, the Town does not believe that it will have a significant effect on its governmental (fund) financial position, upon which the Town's budgets are based and taxes are raised. .. .. .. .. 43 .. .. .. .. .. .. .. .. REQUIRED SUPPLEMENTAL INFORMATION .. . . . . .. .. .. . ... .. .. EXHIBIT I - TOWN OF WAPPINGER, NEW YORK BUDGETARY COMPARISON SCHEDULE FOR THE YEAR ENDED DECEMBER 31.2006 - GENERAL FUND VARIANCE IIIIi ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) REVENUES Real property taxes $ 1,336,167 $ 1,336,167 $ 1,336,167 $ IIIIi Real property tax items 67,000 67,000 100,777 33,777 Non property tax items 1,360,000 1,391,742 1,467,246 75,504 Departmental income 209,500 209,500 630,635 421,135 .... Use of money and property 173,000 173,000 213,972 40,972 Licenses and permits 164,600 296,600 298,266 1,666 Fines and forfeitures 137,500 150,500 149,385 (1,115) Sale of property and compensation for loss 17,936 17,936 - Miscellaneous local sources 1,000 1,500 17,093 15,593 State aid 1,388,300 1,480,551 1,651,724 171,173 IIIIi Total revenues 4,837,067 5,106,560 5,883,201 776,641 Appropriation of prior's year's fund balance 616,405 596,405 87,752 (508,653) Total revenues and appropriation of IIIIi prior year's fund balance 5,453,472 5,702,965 5,970,953 267,988 EXPENDITURES AND ENCUMBRANCES IIIIi General Government Support 1,745,822 2,047,992 2,053,696 (5,704) Public safety 459,883 426,974 426,758 216 Health 2,500 2,870 2,870 IIIIi Transportation 231,907 213,199 213,114 85 Economic assistance & opportunity 28,475 24,583 24,489 94 Culture and recreation 755,810 668,526 702,021 (33,495) Home and community service 470,081 490,159 495,479 (5,320) .... Employee benefits 620,980 690,648 688,768 1,880 Debt service 763,014 885,100 871,233 13,867 - Total expenditures and encumbrances 5,078,472 5,450,051 5,478,428 (28,377) Excess (deficiency) of revenues and appropriation of - prior year's fund balance over (under) expenditures and encumbrances 375,000 252,914 492,525 239,611 Other financing sources (uses) - Operating transfers in 122,086 128,344 6,258 Operating transfers out (375,000) (375,000) (315,000) 60,000 .. Total other financing sources (375,000) (252,914) (186,656) 66,258 Excess (deficiency) of revenues and appropriation of prior year's fund balance and other sources - over (under) expenditures, encumbrances $ $ $ 305,869 $ 305,869 - The accompanying Notes to the Financial Statements .. should be read in conjunction with these Financial Statements. 44 .. .. .. HIGHWAY FUND .. VARIANCE ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) REVENUES .. Real property taxes $ 1,732,426 $ 1,732,426 $ 1,732,426 $ Real property tax items Non property tax items .. Departmental income Intergovernmental charges 1,500 1,500 2,438 938 Use of money and property 10,000 10,000 20,181 10,181 .. Licenses and permits Fines and forfeitures Sale of property and compensation for loss 1,925 3,387 1,462 Miscellaneous local sources 4,906 4,906 .. State aid 104,000 104,000 123,001 19,001 Total revenues 1,847,926 1,849,851 1,886,339 36,488 .. Appropriation of prior's year's fund balance 375,000 Total revenues and appropriation of prior year's fund balance 2,222,926 1,849,851 1,886,339 36,488 III EXPENDITURES AND ENCUMBRANCES General Government Support 114,769 51,157 63,612 III Public safety Health Transportation 1,579,295 1,506,342 1,475,411 30,931 Economic assistance & opportunity III Culture and recreation Home and community service Employee benefits 420,264 462,309 462,305 4 .. Debt service 223,367 208,753 276,074 (67,321) Total expenditures and encumbrances 2,222,926 2,292,173 2,264,947 27,226 .. Excess (deficiency) of revenues and appropriation of prior year's fund balance over (under) expenditures and encumbrances (442,322) (378,608) 63,714 .. Other financing sources (uses) Operating transfers in 442,322 378,618 (63,704) .. Operating transfers out Total other financing sources 442,322 378,618 (63,704) .. Excess (deficiency) of revenues and appropriation of prior year's fund balance and other sources over (under) expenditures, encumbrances $ $ $ 10 $ 10 .. .. 45 III .. .. SEWER FUND .. VARIANCE ORIGINAL FINAL FAVORABLE BUDGET BUDGET ACTUAL (UNFAVORABLE) REVENUES .. Real property taxes $ 1,454,555 $ 1,454,555 $ 1,454,555 $ Real property tax items Non property tax items .. Departmental income 1,474,417 1,474,417 1,446,597 (27,820) Use of money and property 374,850 374,850 445,108 70,258 Licenses and permits Fines and forfeitures .. Sale of property and compensation for loss Miscellaneous local sources State aid .. Total revenues 3,303,822 3,303,822 3,346,260 42,438 Appropriation of prior's year's fund balance 768,024 772,024 538,197 (233,827) .. Total revenues and appropriation of prior year's fund balance 4,071,846 4,075,846 3,884,457 (191,389) EXPENDITURES AND ENCUMBRANCES .. General Government Support 1,249 1,249 Public safety .. Health Transportation Economic assistance & opportunity Culture and recreation .. Home and community service 1,874,736 1,874,683 1,707,983 166,700 Employee benefits 1,395 1,450 1,403 47 Debt service 2,202,965 2,205,714 2,194,158 11,556 ... Total expenditures and encumbrances 4,079,096 4,083,096 3,903,544 179,552 Excess (deficiency) of revenues and appropriation of .. prior year's fund balance over (under) expenditures and encumbrances (7,250) (7,250) (19,087) (11,837) .. Other financing sources (uses) Operating transfers in 7,250 7,250 (7,250) Operating transfers out .. Total other financing sources 7,250 7,250 (7,250) Excess (deficiency) of revenues and appropriation of .. prior year's fund balance and other sources over (under) expenditures, encumbrances $ $ $ (19,087) $ (19,087) .. . 46 ... .. .. .. .. .. .. .. OTHER SUPPLEMENTAL INFORMATION .. .. .. .. .. .. ... .. .. .. .. .. .. EXHIBIT II TOWN OF WAPPINGER, NEW YORK .. COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS DECEMBER 31,2006 .. TOTAL MISC NON-MAJOR .. WATER LIGHT GRANT GOVERNMENTAL FUND FUND FUND FUNDS ASSETS .. Cash and cash equivalents $ 149,701 $ 9,211 $ 94,182 $ 253,094 Receivables: .. Charges for services 270,709 270,709 Due from other funds 903 903 Total assets $ 421,313 $ 9,211 $ 94,182 $ 524,706 . .. LIABILITIES AND FUND EQUITY .. LIABILITIES Accounts payable $ 212,777 $ 2,984 $ 948 $ 216,709 Due to other funds 14,904 21,321 36,225 . Total liabilities 227,681 2,984 22,269 252,934 .. FUND BALANCE Fund balance (deficit): Reserved for: .. Prepaids and Inventory Unreserved: Designated: .. Subsequent year's expenditures 102,781 153 12,000 114,934 Undesignated 90,851 6,074 59,913 156,838 Total fund balance 193,632 6,227 71,913 271,772 .. Total liabilities and fund balance $ 421,313 $ 9,211 $ 94,182 $ 524,706 .. .. .. ... See independent auditor's report 47 ... ilia EXHIBIT ill TOWN OF WAPPINGER, NEW YORK COMBINING STATEMENT OF REVENUES, EXPENDITURES AND .. CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED DECEMBER 31, 2006 .. TOTAL ilia MISC NON-MAJOR WATER LIGHT GRANT GOVERMENTAL FUND FUND FUND FUNDS .. REVENUES Property taxes $ 634,855 $ 39,140 $ 399,595 $ 1,073,590 Property tax items 54 54 .. Departmental income 867,672 867,672 Use of money and property 14,559 500 5,441 20,500 Sale of property and compensation for loss 10,891 10,891 . Total revenues 1,527,977 39,640 405,090 1,972,707 .. EXPENDITURES General government support 20,024 20,024 .. Health 413,079 413,079 Transportation 32,296 32,296 Home and community services 931,756 931,756 .. Employee benefits 5,709 1,073 6,782 Debt service 754,984 754,984 .. Total expenditures 1,692,449 32,296 434,176 2,158,921 Excess (deficiency) of .. revenues over expenditures (164,472) 7,344 (29,086) (186,214) Other imancing sources: .. Operating transfers in 95,529 95,529 Operating transfers out (21,321) (21,321) Total other financing sources 95,529 (21,321) 74,208 .. Excess (deficiency) of revenue and other sources over expenditures and other uses (68,943) 7,344 (50,407) (112,006) .. Fund Balance, December 31, 2005 262,575 (1,117) 122,320 383,778 .. Fund Balance, December 31, 2006 $ 193,632 $ 6,227 $ 71,913 $ 271,772 . - See independent auditor's report 48 --