2003-12-31
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TOWN OF WAPPINGER, NEW YORK
FINANCIAL STATEMENTS
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AS OF AND FOR THE YEAR ENDED
DECEMBER 31.2003
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TOWN OF WAPPINGER, NEW YORK
TABLE OF CONTENTS
DECE~EJl31.2003
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DESCRIPTION
PAGE (S)
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Independent Auditors' Report........................................... ................................ .... .................. ..1-2
1M
Report on Compliance and on Internal
Control Over Financial Reporting Based on an Audit of
Financial Statements Performed in
Accordance With Government Auditing Standards ................................................................ 3-4
1M
Management's Discussion and Analysis (unaudited)
For The Year Ended December 31, 2003....... ......... ......................... ............ .......................... 5-9
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BASIC FINANCIAL STATEMENTS:
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Govemment- Wide Financial Statements
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Statement of Net Assets - December 31,
2003...... ... ... ... ...... ...... ... ... ... ... ... ... ...... ... ...... ...... ......... ..... ...................................10
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Statement of Activities - For The Year Ended
December 31, 2003 ..... ...................................................................................................... 11-12
FUND FINANCIAL STATEMENTS:
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Balance Sheet - Governmental Funds - December 31, 2003 ..................................................... 13
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Reconciliation of Governmental Funds Balance Sheet
To The Statement of Net Assets - December 31, 2003 ....................... ......... ........................... 14
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Statement of Revenues, Expenditures and Changes
In Fund Balances- Governmental Funds -
For the Year Ended December 31, 2003................................................................................. 15
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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, 2003.......................................... 16
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Statement of Net Assets - Fiduciary Funds - December 31, 2003 ................................... .17
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Notes to Basic Financial Statements........................................ ................... .......................... 18-41
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REQUIRED SUPPLEMENTAL INFORMATION SECTION:
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Exhibit I
Budgetary Comparison Schedule -
General Fund - For the Year Ended December 31,2003......................................................42
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OTHER SUPPLEMENTAL INFORMATION SECTION:
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Exhibit II.
Combining Balance Sheet - Non-Major
Governmental Funds - December 31, 2003 ......................................................................43-44
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Exhibit ill
Combining Statement of Revenues, Expenditures
and Changes in Fund Balances - Non-Major Governmental
Funds For the Year Ended December 31, 2003................................................................ .45-46
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Schedule of Findings and Recommendations ..... ......... ......... ............................................... .47-48
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Town of Wappinger Responses to Audit Findings and
Recommendations. . . . .. . . . . . . . . . . . . . . . . . . . . . . . . ... ................................................................. ...... .49
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SEDORE & COMPANY
PO Box 918
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62 East Main StlCet
Certified Public Accountants, pc.
INDEPENDENT AUDITORS' REPORT
Wappingets Falls, NY 12590
tel 845.297.1111
fax 845.297.1432
Poughkeepsie 845.485.5510
BeacolI 845.831.0542
www.sedoreco.com
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To the Supervisor and
Members of the Town Board
Town of Wappinger, New York
20 Middlebush Road
Wappingers Falls, New York 12590
James L. Sedore, Jr., CPA
Mark S. O'Sullivtlrl, CPA
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Jelmes F Letterio, Jr., CPA
Linda Pd. Hannigan, Cl'l1
Kelren T HelllSen, CPA
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We have audited the accompanying basic financial statements of the Town of Wappinger, New
York as of December 31, 2003, and for the year then ended as listed in the foregoing Table of
Contents. These basic financial statements are the responsibility of the Town of Wappinger,
New York's management. Our responsibility is to express an opinion on these basic financial
statements based on our audit.
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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
basic financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the basic financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall basic financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.
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As described in Note A, Summary of Significant Accounting Policies, the Town of Wappinger,
New York has implemented a new financial reporting model, as required by the provisions of
GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and
Analysis -for State and Local Governments, as of December 31,2003.
In our opinion, the basic financial statements referred to above present fairly, in all material
respects, the financial position of the Town of Wappinger, New York as of December 31,2003
and the results of its operations for the year then ended, in conformity with accounting principles
generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated
September 20,2004, 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 contracts and grants. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be read in conjunction with this
report in considering the results of our audit.
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III
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Large Firm Expertise" Local Firm Service
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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 limited procedures, consisting principally of inquiries of
management regarding the methods of measurement and presentation of the supplementary
information. We did not audit the information and express no opinion thereon.
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Our audit was performed for the purpose of forming an opinion on the basic financial statements
taken as a whole. The combining fund statements listed in the Table of Contents as Exhibits n
and ill, are presented for purposes of additional analysis and are not a required part of the basic
financial statements of the Town of Wappinger, New York. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements taken as
a whole and, in our opinion, is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
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Wappingers Falls, New York
September 20, 2004
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SEDORE & COMPANY
PO Box 918
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62 East Main Street
Certified Public Accountants, P. C.
Wappingers Falls, NY 12590
tel 845.297.1111
fax 845.297.1432
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REPORT ON COMPLIANCE AND
ON INTERNAL CONTROL OVER FINANCIAL REPORTING BASED
ON AN AUDIT OF BASIC FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS
Poughkeepsie 845.485.5510
Beacon 845.8.11.0542
www.sedoreco.com
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.fames L. Sedore, .fr., G'A
Mark S. O'Sullivan, CPA
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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 basic financial statements of the Town of Wappinger, New York as of and
for the year ended December 31, 2003, and have issued our report thereon dated September 20,
2004. We have 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.
.fllmes F Letterio,]1:, CPA
LintLl M. Hannigan, Cf'A
fulren T HoWSer!, CPA
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Comnliance
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As part of obtaining reasonable assurance about whether the Town of Wappinger' s basic
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grants, 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 instance of
noncompliance that is required to be reported under Government Auditing Standards. We noted
certain immaterial instances of noncompliance that we have also reported to management of the
Town of Wappinger in the Schedule of Findings and Recommendations as listed in the Table of
Contents.
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Internal Control Over Financial ReDortin2
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In planning and performing our audit, we considered the Town of Wappinger's internal control
over financial reporting in order to determine our auditing procedures for the purpose of
expressing our opinion on the basic financial statements and not to provide assurance on the
internal control over financial reporting. Our consideration of the internal control over financial
reporting would not necessarily disclose all matters in the internal control over financial
reporting that might be material weaknesses. A material weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a
relatively low level the risk that misstatements in amounts that would be material in relation to
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Large Firm Expertise,.., Local Firm Service
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the basic financial statements being audited may occur and not be detected within a timely period
by employees in the normal course of performing their assigned functions. We noted no matters
involving the internal control over financial reporting and its operation that we consider to be
material weaknesses. However, we noted other matters involving the internal control over
financial reporting that we have reported to management of the Town of Wappinger, New York,
as described in the accompanying Schedule of Findings and Recommendations as listed in the
Table of Contents.
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This report is intended for the information and use of the Supervisor, Town Board, Finance
Director and Management, and is not intended to be and should not be used by anyone other than
these specified parties.
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Wappingers Falls, New York
September 20, 2004
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MANAGEMENT'S DISCUSSION AND ANALYSIS
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1. Overview of the Financial Statements
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These audited financial statements consist of five parts. The Independent Auditors Report on
our Financial Statements, Managements Discussion and Analysis (this section), Government-
Wide Financial Statements, Fund Financial Statements and Notes to the Financial
Statements.
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-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.
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-Fund Financial Statements focus on the individual parts of the 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.
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-Notes to the Financial Statements provide further explanation and support for the
information contained in the financial statements.
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2. Financial Analysis of the Town as a Whole
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GENERAL FUND
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The majority of activity for the Town is located in the General Fund. Fund Balance for this
Fund increased over $101,133 from 2002 to 2003. Major reasons for this increase were an
increase of $297,811 in mortgage tax revenue and an increase of $188, 167 in sales tax
revenue. Also included in this increase is a prior period adjustment of $83,622 to record
transactions previously recorded in Trust & Agency
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On the expense side, Liability Insurance increased $26,372, Vandalism Patrol increased
$56,644, Health Insurance increased $49,981 and State Retirement increased $61,406 over
the prior year. Other overall changes to expenditures were insignificant.
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As of December 31, 2003, reserves for Fund Balance amounted to $458,618 and unreserved
amounted to $1,609,502 for a total of $2,068, 120.
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The fluctuations in the budget are explained in the revenue and expense summary above.
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The Following Charts describe significant categories of General Fund revenues and
expenses:
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GENERAL FUND REVENUE 2003
. Property Taxes
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. State Aid
o Sales and
Franchise Taxes
o Real Property Tax
Items
. Departmental
Income
. Licenses and
Permits
. All Other Revenue
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GENERAL FUND EXPENSES 2003
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10%
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12%
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13%
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HIGHWAY FUND
. Public Safety
37%
. General Government
Support
o Culture and
Recreation
o 8Tl>loyee Benefits
. Horne and
Comrnmity Serv.
. other Expenses
The Highway Fund ended the year with $4,275 in reserve for Fund Balance and $98,665 in
unreserved Fund Balance for a total of $1 02,940 in Fund Balance. Fund Balance decreased
by $60,008 from 2002 to 2003. Contributing factors for this loss were that contractual
expenses for snow removal increased almost $45,799 and machinery maintenance expenses
increased approximately $8,524 due to difficult winter season. New York State Retirement
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System benefits increased over $33,693 due to new contribution requirements implemented
by the State. The Town anticipates that the Fund Balance going forward will be maintained
at four to five percent of the operating budget.
The following charts describe the significant categories of Highway Fund revenues and
expenses:
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Highway Fund Revenue 2003
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. A-operty Taxes
. Transfers from Other Funds
D State Aiel
D Other Revenue
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Highway Fund Expenses 2003
. Street Maintenance
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. Permanent Road
Improwments
o Snow Removal
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44%
o Machinery Purchase &
Maintenance
. Employee Benefits
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. Brush and Weeds
6%
. Debt Service
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WATER FUND
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The Town operated twelve water districts during 2003 with an overall Fund Balance of
$383,647. Operating revenues totaled $1,240,054 with the expenses totaling $1,270,944
resulting in excess (deficiency) of revenues over (under) expenditures in the amount of
($30,890). The Town has appropriated Fund Balance in the amount of$83,185 in the 2004
Budget and will continue to monitor available Fund Balance.
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SEWER FUND
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The Town operated nine Sewer Districts during 2003 with an overall Fund Balance
$2,047,366. Two of the Districts represent debt service only and account for $713,909 of the
total Fund Balance. These fund balances will be used to reduce debt service payments in the
future budgets. The Town has appropriated Fund balance in the amount of$117,336 for
2004 Budget. Installation of back-up generators has been budgeted in 2004 for Sewer
Improvement Area # 1 and Rockingham Sewer Districts.
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3. Activities regarding capital assets and long-term debt
CAPITAL ASSETS
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The Town has set a capitalization policy of $10,000 for capitalizing infrastructure.
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The Town spent over five million dollars on twenty capital projects in 2003. The largest
capital project is the Central Wappinger Water Improvement Area 1999 2R. The
expenditures for this district were fifty four percent (54%) of the total capital expenditures.
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The Central Wappinger Water Improvement Area 1999 -2R project will connect 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 2005. The project expenses are funded entirely by the members of the
district. Bonding to finance the construction of the project will take place in 2005 with long
term financing to be issued in 2006. Total bonding for the project will be approximately
$8,590,000.
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The other projects related to purchase of highway equipment, road blacktopping and
drainage, technology project, recycle center and water and sewer district improvements, other
than grant revenue, are funded by the General, Highway Funds or by the members of each
water and sewer district. Bonding for some of these projects was done in 2003. Future
bonding is expected to be issued. Please review the notes to the financial statements for
information regarding these issues.
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The Town has been awarded a grant from Community Development Block Grant through
Dutchess County in the amount of $102,150 for the Wappinger Park Water. The total cost of
the project is $780,000.
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LONG TERM DEBT
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The Town received a Moody's rating of Aa3 when bond refinancing was done in 2001 and
maintained that rating with the issuance of new bonds in 2003. This is the fourth highest
rating possible and the highest for a municipality in Dutchess County.
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Total long-term debt at the end of2oo3 was $26,924,556. Only $4,953,550 of this balance is
General Fund debt. The majority of this relates to water districts -$1,449,700 and sewer
districts - $20,521,306, which are financed by the members of each district. Please review
the notes to the financial statements for further information regarding long term debt.
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.. TOWN OF WAPPINGER, NEW YORK
STATEMENT OF NET ASSETS
DECEMBER 31,2003
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II GOVERNMENTAL
ACTIVITIES
ASSETS
.. Current assets:
Cash and cash equivalents $ 5,781,633
Investments 355,762
... Restricted cash 792,905
Receivables (net) 1,931,450
Inventories 37,500
Deposits with other governments 137,054
.. Prepaid expenses 20,774
Total current assets 9,057,078
.. Capital assets:
Land 7,761,540
Infrastructure, net of depreciation 1,288,063
.. Buildings, machinery and equipment, net of depreciation 5,591,760
Construction in Progress 5,409,106
Total capital assets 20,050,469
... Total assets $ 29,107,547
LIABILITIES
iIII ClUTent Liabilities:
AccOlUlts Payable $ 951,518
Accrued liabilities and retainage payable 587,823
.. Notes payable 6,642,000
Deferred revenues 23,340
Due to other governments 39,553
Current portion of long-term liabilities
.. LandfIll remediation liability 362,510
Bonds payable 2,011,000
Total current liabilities 10,617,744
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Non-current liabilities:
Judgment and claims 80,000
.. Compensated absence liabilities 135,502
LandfIll remediation liability 658,382
Bonds payable 24,913,556
Total non-current liabilities 25,787,440
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Total liabilities 36,405,184
.. NET ASSETS
Invested in Capital Assets, net of related debt 6,695,469
Restricted for:
.. Recreation 85,178
Unrestricted (deficit) (14,078,284)
Total net assets (7,297,637)
III Total liabilities and net assets $ 29,107,547
.. The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements.
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TOWN OF WAPPINGER, NEW YORK
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31. 2003
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OPERATING ..
CHARGES GRANTS AND
FUNCTIONS/PROGRAMS EXPENSES FOR SERVICES CONTRIBUTIONS
Governmental Activities: -
General government support $ 2,450,754 $ 16,568 $ 10,020
Public safety 562,951 161,518
Health 190,621 -
Transportation 2,145,923
Economic assistance & opportunity 9,474 45,000
Culture and recreation 750,279 14,770 39,329 ..
Home and community services 2,448,105 2,008,595
Interest on long-term debt 1,310,171
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Total governmental activities 9,868,278 2,201,451 94,349
General revenues
Taxes:
Real property taxes
Non-property tax items
Sales tax
Mortgage tax
Franchise taxes
Payments from other governments
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Special item-Gain on sale of property and compensation for loss
Miscellaneous
Total general revenues, special items and transfers
Change in net assets before extraordinary item
Extraordinary item - Landfill remediation cost
Change in net assets
Net assets - beginning
Net assets - ending
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The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements.
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.. TOWN OF WAPPINGER, NEW YORK
BALANCE SHEET
GOVERNMENTAL FUNDS
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CAPITAL NON- TOTAL
GENERAL PROJECTS MAJOR GOVERNMENTAL
.. FUND FUND FUNDS FUNDS
ASSETS
Cash and cash equivalents $ 527,151 $ 3,150,622 $ 2,103,860 $ 5,781,633
.. Investments 355,762 355,762
Restricted cash 792,905 792,905
Receivables:
.. Charges for services 589,653 589,653
Other 116,169 1,754 117,923
Deposits with other governments 137,054 137,054
- Due from other funds 506,224 4,000 42,840 553,064
Due from other governments 792,985 280,000 4,700 1,077,685
State and federal receivable 18,108 122,576 5,505 146,189
- Prepaid expenses 16,499 4,275 20,774
Total assets $ 2,332,898 $ 4,487,157 $ 2,752,587 $ 9,572,642
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LIABILITIES AND FUND EQUITY
.. LIABILITIES
Accounts payable $ 202,974 $ 671,287 $ 77,257 $ 951,518
Accrued liabilities 5,328 3,202 8,530
.. Retainage payable 237,432 237,432
Bond anticipation notes payable 6,642,000 6,642,000
Due to other funds 19,345 490,178 43,541 553,064
.. Due to other governments 29,553 10,000 39,553
Deferred revenues 7,578 15,762 23,340
Total liabilities 264,778 8,066,659 124,000 8,455,437
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FUND BALANCE
Fund balance (deficit):
.. Reserved for:
Encumbrances 39,219 39,219
Prepaids 16,499 4,275 20,774
.. Miscellaneous 402,900 402,900
Unreserved:
Subsequent year's expenditures 750,514 281,841 1,032,355
.. Undesignated 858,988 (3,579,502) 2,342,471 (378,043)
Total fund balance 2,068,120 (3,579,502) 2,628,587 1,117,205
- Total liabilities
and fund balance $ 2,332,898 $ 4,487,157 $ 2,752,587 $ 9,572,642
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The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements.
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TOWN OF WAPPINGER, NEW YORK
RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
DECEMBER 31. 2003
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. Total fund equity for governmental funds $ 1,117,205
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. 20,050,469
II1II Long-term liabilities, including bonds payable, compensated
absences, service award program liability, judgement and claims
and landfill remediation liabilities are not due and payable
.. in the current period and therefore are not reported in the funds. (28,160,950)
II1II Inventories are not reported in the funds 37,500
Accrued interest is not reported in the funds. (341,861 )
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Total net assets of governmental activities $ (7,297,637)
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The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements.
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TOWN OF WAPPINGER, NEW YORK
.. STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31. 2003
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CAPITAL NON-
GENERAL PROJECTS MAJOR TOTAL
. FUND FUND FUNDS FUNDS
REVENUES
Real property taxes $ 1,323,997 $ $ 4,344,105 $ 5,668,102
Real property taxes items 80,688 35 80,723
.. Non property taxes items 1,297,262 1,297,262
Departmental income 186,716 1,876,397 2,063,113
Intergovernmental charges 5,377 5,377
. Use of money and property 178,604 73,946 592,600 845,150
Licenses and permits 170,594 170,594
Fines and forfeitures 130,392 130,392
IiIIll Sale of property and compensation for loss 8,456 719,784 2,644 730,884
Miscellaneous local sources 21,179 374,351 19,083 414,613
Interfund revenues 16,000 16,000
State aid 1,573,513 81,900 150,033 1,805,446
.. Federal aid 8,250 45,000 53,250
Total revenues 4,971,401 1,258,231 7,051,274 13,280,906
IiIIll EXPENDITURES
General government support 1,787,382 1,225,532 16 3,012,930
. Public safety 462,492 462,492
Health 3,468 185,850 189,318
Transportation 178,027 444,244 1,416,465 2,038,736
Economic assistance & opportunity 9,474 9,474
.. Culture and recreation 638,099 694,311 1,332,410
Home and community services 609,066 2,768,580 1,922,633 5,300,279
Employee benefits 515,579 319,902 835,481
.. Debt service 654,320 2,280 3,260,828 3,917,428
Total expenditures 4,857,907 5,134,947 7,105,694 17,098,548
Excess of revenues over expenditures 113,494 (3,876,716) (54,420) (3,817,642)
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Other financing sources:
Proceeds of debt 2,254,000 2,254,000
.. BANs redeemed from appropriations 587,444 587,444
Operating transfers in 8,017 42,546 409,862 460,425
Operating transfers out (104,000) (317,879) (38,546) (460,425)
.. Total other financing sources (95,983) 2,566, III 371,316 2,841,444
Excess (deficiency) of revenue and other sources
over expenditures and other uses 17,511 (1,310,605) 316,896 (976,198)
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Fund Balance, December 31, 2002 1,966,987 (2,268,897) 2,311,691 2,009,781
Prior period adjustment 83,622 83,622
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Adjusted Fund Balance, December 31,2002 2,050,609 (2,268,897) 2,311,691 2,093,403
.. Fund Balance, December 31, 2003 $ 2,068,120 $ (3,579,502) $ 2,628,587 $ 1,117,205
The accompanying Notes to the Financial Statements
.. should be read in conjunction with these Financial Statements.
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TOWN OF WAPPINGER, NEW YORK
RECONCILIATION OF STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED DECEMBER 31. 2003
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Net change in fund balance - total government funds $ (976,198)
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The change in net assets reported for governmental activities in the
statement of activities is different because:
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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 depreciation
.. exceeded capital outlays in the current period. 4,541,975
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:
Bonds payable (2,254,000)
Bond anticipation note redeemed (587,444)
.. Repayments:
Bond anticipation note principal 587,444
Bond principal 2,010,000
.. (244,000)
In the statement of activities, interest is accured on outstanding
.. bonds, whereas in governmental funds, an interest expenditure is
reported when due. 9,813
. Some expenses reported in the statement of activities, such as
materials' inventory, compensated absences and landfill liabilities do
not require the use of current financial resources and therefore are not
.. reported as expenditures in governmental funds. 65,037
Net change in net assets of governmental activities $ 3,396,627
IIIIIIl
..
..
The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements.
16
..
..
TOWN OF WAPPINGER, NEW YORK
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUND
DECEMBER 31.2003
..
..
AGENCY
FUNDS
.. ASSETS
Cash and cash equivalents $ 939,047
..
Total assets 939,047
..
LIABILITIES
..
Escrow funds returnable and other liabilities 939,047
.
Total liabilities 939,047
..
NET ASSETS
.. Total liabilities and net assets $ 939,047
..
..
..
..
..
..
..
The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements
..
17
..
..
..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31. 2003
..
NOTE A - Summary of Si,nificant 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 ChiefFisca1 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.
The Town implemented the new reporting requirements of GASB Statement No. 34, Basic
Financial Statements-and Management's Discussion and Analysis-for State and Local
Governments for the year ended December 31, 2003. As a result, an entirely new financial
statement presentation has been included in the financial statements. The significant changes in
the Statement include the following:
. For the first time the financial statements include:
..
..
..
..
..
..
o A Management Discussion and Analysis (MD&A) section providing an analysis
of the Town's overall financial position and results of operations.
o Financial statements which have been prepared using full accrual accounting for
all of the Town's activities, including infrastructure (roads, bridges, etc.), known
as the government-wide financial statements.
. A change in the fund financial statements to focus on the major funds.
These and other changes are reflected in the accompanying financial statements and the notes to
financial statements.
..
..
.
.
..
..
..
18
iii
iii
iii
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
iii
NOTE A - Summa" of Si2nificant Accountin2 Policies (Continued)
1. The ReDortin2 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,
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. Under these criteria, no other entities are
included in the Town's financial statements.
iii
iii
iii
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
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).
iii
..
..
..
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.
..
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19
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
..
NOTE A - Summary of Sienificant Accountinl! Policies (Continued)
3. Basic Financial Statements - Fund Financial Statements
The financial transactions of the Town are reported in individual funds in the fund
fmancial 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:
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
..
..
..
a.
..
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 fmancial position (sources, uses,
and balances of financial resources) rather than upon net income.
..
..
The following is a description of the governmental funds of the Town:
General fund is the general operating fund of the Town. It is used to account for
all financial resources except those required to be accounted for in another fund.
The General Fund is considered a major fund and is presented separately.
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.
1.
..
.. 2.
..
..
3. 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.
..
1M
20
.
11II
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31. Z003
..
NOTE A - Summa" of Simificant 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.
.
..
..
..
..
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21
..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
..
NOTE A - Summary of Silmificant 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, 2003, are as follows:
IiII
NON- CAPITAL
GENERAL MAJOR PROJECTS
FUND FUNDS FUND TOTAL
Non-Interest
Bearing Accounts $ 800 $ - $ - $ 800
Interest Bearing
Accounts 526.351 2.103.860 3.150.622 5.780.833
Subtotal 527,151 2,103,860 3,150,622 5,781,633
Restricted-Interest
Bearing Accounts 929,959 929,959
Investments-Repurchase
agreements 355.762 355.762
TOTALS $ 882.913 $ 2.103.860 $ 4.080.581 $ 7.067.354
..
.
~
.
..
..
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22
III
..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
..
NOTE A - Summary of Simificant Accountin2 Policies (Continued)
s. Financial Statement Amounts (Continued)
A. Cash and Investments (Continued)
The restricted cash represents unspent bond proceeds whose use is limited to funding certain
construction projects and related debt service. This restricted cash is further described in
Note I - Commitments and Contingent Liabilities, Items 3 and 4 - Tri-Municipal Sewer Plant
Expansion.
..
III
..
III
Deposits and investments at year-end were entirely covered by federal deposit insurance, or
by collateral held by a third party custodian in the Town's name.
Disclosures relating to risk and type of investment as presented are indicative of activity
and positions held during the year.
..
B. Inventories
Inventories consist of significant expendable supplies primarily sand and road salt and are
carried at cost in the government-wide financial statements.
III
..
C. CaDital 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:
III
..
..
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
III
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III
23
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..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
..
NOTE A - Summary of Silnificant Accountin2 Policies (Continued)
5. Financial Statement Amounts (Continued)
C. CaDital Assets (Continued)
..
..
reporting of infrastructure is subject to an extended implementation period and is first
effective for fiscal years ending in 2006. The Town has implemented the general provisions
of GASB Statement No. 34 in the current year and expects to implement the retroactive
infrastructure provisions in the year ending December 31, 2004.
..
..
D. Accumulated ComDensated 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, 2003, in the
amount of$35,502. The non-current portion (the amount estimated to be used in subsequent
fiscal years) for governmental funds is maintamed 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. Interlund 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 govemment-
wide financial statements.
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24
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
..
NOTE A - Summa" of Si~ificant Accountinsr Policies (Continued)
5. Financial Statement Amounts (Continued)
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).
..
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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, Gov. Alfred E. Smith State Office Building,
Albany, NY 12244.
..
..
..
Funding Policy
The Systems are noncontributory except for employees who joined the New York State
and Local Employees' Retirement System after July 27, 1976 who contribute 3% of their
salary. Under the authority of the NYSRSSL, the Comptroller shall certify annually the
rates expressed as proportions of payroll of members, which shall be used in computing
the contributions required to be made by employers to the pension accumulation fund.
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25
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.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31.2003
.
NOTE A - Summary or Si,nificant Accountinl! Policies (Continued)
5. Financial Statement Amounts (Continued)
G. Pension Plans: Plan Descriotion (Continued)
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:
..
..
..
2003
2002
2001
~
$ 115.996
$ 21.258
$ 11.442
..
..
..
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. l-ost Emolovment 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 of2003, $42,298 was paid on behalf of twelve retirees, and recorded as
expenditures in the General and Special Revenue Funds.
..
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L Prooertv Taxes
The Town submits an approved budget to the Dutchess County Commissioner of Finance by
December 5th of the previous year. The County then establishes the warrant for the year,
which is due and payable on or about January 1 of each year. The Town collects the taxes on
behalf of the Town and County without penalty through February 28th and with penalties and
interest through August 31st. The Town's portion of the taxes is recognized and transferred
prior to the County's portion. Therefore, the Town receives its entire tax, leaving the unpaids
to be collected by the County Commissioner of Finance.
..
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26
.
.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
. DECEMBER 31.2003
. ~OTE A - Summa" of Si2nificant Accountint! Policies (Continued)
5. Financial Statement Amounts (Continued)
.
J. Lont!- 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 Equitv
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:
-
.
General Fund
BALANCE AT
DECEMBER 31.2003
-
Reserved for Encumbrances
Reserved for Prepaid Expenses
Reserved for Miscellaneous:
Inspection Fees
$
39,219
16,499
.
402.900
TOTAL FUND EQUITY RESERVES
$
458.618
.
.
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 oftoss 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.
.
..
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27
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..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D)
DECEMBER 31. 2003
..
NOTE A - Summary of Si2'nificant Accountin2' Policies (Continued)
5. Financial Statement Amounts (Continued)
..
M. Extraordinary Item
..
The Town has reported an extraordinary item resulting from the accrual of the estimated
landfill remediation costs related to the Castle Point landfill and the Poughkeepsie-
Wappingers- LaGrange Joint landfill, further described in Note J. The Castle Point
landfill costs amounted to $216,390 and the Poughkeepsie-Wappingers-LaGrange Joint
landfill costs amounted to 5854,360 for a total of51,070,750.
..
..
N. Chanl!es in Accountinl! Policies
With this financial report the Town has changed its financial reporting to comply with
Governmental Accounting Standards Board (GASB) Statement No. 34, Basic Financial
Statements and Management's Discussion and Analysis for State and Local
Governments.
..
..
As part of implementation of GASB Statement No. 34, the Town has not opted for early
implementation of infrastructure reporting. In so doing, the historical cost of
infrastructure assets current additions are only included as part of the governmental
capital assets reported in the government wide statements. Thus, only the depreciated
value of current year construction costs for roads, water lines, bridges, sidewalks and
other improvements related to public right-of-ways, is reported.
The requirements of GASB Statement No. 34 have changed the definition of fiduciary
funds such that certain funds collected for recreational purposes are now recorded in the
General Fund and described as Net Assets Restricted for Recreation. The Town has
recorded a prior period adjustment in the amount of $83,622 to the General Fund, fund
equity as of January I, 2003 and 5557 in the additional departmental revenue for the year
ended December 31,2003 as a result of this change.
In conjunction with the implementation of GASB Statement No. 34, the Town has
implemented GASB Statement No. 38, Certain Financial Statement Note Disclosures,
which rescinds some and modifies other financial statement disclosure requirements.
O. Use of Estimates
..
..
..
..
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..
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.
..
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28
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TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.1003
..
NOTE B - Other Receivables
Other Receivables at December 31, 2003, consist of the following:
..
..
Accounts Receivable
Water & Sewer Rents Receivable
TOTALS
GENERAL
FUND
$ 116,169
NON
MAJOR
FUNDS
$ 1,754 $
589.653
TOTAL
117,923
589.653
..
_S 116.169 S 591.407 S 707.576
..
..
NOTE C - Interfund Receivables and P~vables and Transfen
The following is a summary of amounts due from and due to other funds, as of December 31,
2003. 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.
..
..
RECEIVABLE FUND PAYABLE FUND AMOUNT
General Non-Major $ 39,886
General Capital Projects 450,994
General General 15,344
Non-Major Capital Projects 38,152
Non-Major Non-Major 4,688
Capital Projects General 4,000
TOTALS $ 553,064
TRANSFERS FROM TRANSFERS TO
General Non-Major $ 100,000
General Capital Projects 4,000
Non-Major Capital Projects 38,546
Capital Projects Non-Major 309,862
Capital Projects General 8,017
TOTALS $ 460,415
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29
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.
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
..
NOTE D - Caoital Assets
The following is a summary of changes and adjustments in the General Fixed Assets Account
Group, for the year ended December 31, 2003:
..
..
BALANCE BALANCE
JANUARY 1, DECEMBER 31,
2003 ADDmONS (DISPOSALS) 2003
Land $ 7,761,540 $ $ $ 7,761,540
Buildings 5,554,094 9,540 5,563,634
Improvements
Other Than Buildings 711,028 32,523 (49,865) 693,686
Infrastructure - Roads 298,617 298,617
Infrastructure - Water & Sewer 1,035,235 1,035,235
Machinery &
Equipment 3,579,145 365,015 (240,489) 3,703,671
Construction in Progress 2.190.769 3.218.337 5.409.106
Total 19 796.576 4.959.267 (290.354) 24.465 489
Less accumulated depreciation
Buildings 1,608,369 143,469 1,751,838
Improvements
Other Than Buildings 553,817 12,267 (49,865) 516,219
Infrastructure - Roads 19,908 19,908
Infrastructure - Water & Sewer 25,881 25,881
Machinery &
Equipment 2.125.896 215.767 (240.489) 2.101.174
Total accumulated depreciation 4.288.082 417.292 (290.354) 4.415.020
Governmental activities capital
assets, net $ 15.508.494 $ 4.541.975 $ $ 20.050.469
..
..
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.
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III
..
*Depreciation was charged to governmental activities as follows:
..
General government support
Public safety
Transportation
Home and community services
Culture and recreation
Total depreciation expense
$ 96,322
52,666
196,064
10,604
61.636
$ 417.292
..
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30
III
III
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
III DECEMBER 31.2003
.. NOTE E - Bond Antieioation Notes Pavable
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, 2003, are as follows:
AMOUNT
.
OUTSTANDING
ORIGINAL ORIGINAL AT
- ISSUE MATURITY INTEREST AMOUNT DECEMBER 31,
PURPOSE DATE DATE RATE OF ISSUE 2003
-
Sewer 07/11/96 03/05/04 1.34% $ 403,000 $ 45,000
Landfill 07/09/98 03/05/04 1.34% 580.000 75.000
. Subtotal 983.000 120.000
Highway Equip. 02/14/02 08/12/04 0.95% 250,000 150,000
Highway Equip. 12/21/00 08/12/04 0.95% 239,991 96,000
- Highway Equip. 12/23/99 08/12/04 0.95% 363,000 76,000
Highway/Rec Equip. 12/19/02 08/12/04 0.95% 200,000 200,000
- Water 12/19/02 08/12/04 0.95% 205.000 185.000
Subtotal 1.257 .991 707.000
Master Planfl'ech. 08/12/03 08/12/04 1.14% 175,000 175,000
. Recycle Center 08/12/03 08/12/04 1.14% 175,000 175,000
Highway Resurface 08/12/03 08/12/04 1.14% 315,000 315,000
. Greystone Fuel Tank 08/12/03 08/12/04 1.14% 200.000 200~000
Subtotal 865.000 865.000
Water 05/03/01 04/30/04 1.08% 5.250.000 4.950.000
. TOTALS S 8.355.991 S 6.642.QOO
..
.
..
..
31
..
.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 2003
.
.
NOTE E - Bond Anticioation Notes Pavable (Continued)
-
BALANCE BALANCE
JANUARY 1, NEW DECEMBER 31,
PURPOSE ~ ISSUES PAYMENTS 2003
Various Purposes $ 847,000 $ - $ (727,000) $ 120,000
Highway Equipment 496,000 1,065,000 (174,000) 1,387,000
Sewer 955,444 (955,444)
Water 5.355.000 (220.000) 5.135.000
TOTALS 57.653.444 5 1.065.000 5 l2.076.444) 5 6.642.000
.
.
.
.
-
.
-
.
.
.
.
.
.
.
32
..
.. TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECE~EIl31.2003
.. NOTE F - Lonl!- 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, 2003, are as follows:
III
AMOUNT
OUTSTANDING
III ORIGINAL FINAL ORIGINAL AT
ISSUE MATURITY INTEREST AMOUNT DECE~ER 31,
.. PURPOSE DATE DATE RATE OF ISSUE 2003
Water $ 2,630,000 $ 101,000
.. Sewer 3,005,000 112,000
Drainage 400.000 12.000
05/01/77 05/01/04 5.375% 6.035.000 225.000
III Water 148,070 18,300
Sewer 362,000 44,850
.. Town Hall 700.000 86.850
12/01/85 06/01/05 7.75% 1.210.070 150.000
Sewer - Tri-Municipal 11/12/92 09/15/12 5.8001'0-6.65% 4.342.000 1.591.000
III
Sewer - Tri-Municipal 08/07/02 06/15/12 2.00%-4.40% 1.718.000 1.559.000
Sewer - Tri-Municipal 03/14/02 04/15/21 1.21%-4.98% 9.836.556 8.896.556
.. Sewer - Tri-Municipal 11/26/02 05/15/15 3.18%-5.99% 5.845.000 5.455.000
Sewer - Tri-Municipal 06/01/95 11/15/15 3.70%-5.55% 2.610.054 1.730.000
.. Water - Fleetwood 07/30/98 10/15/18 3.70%-5.15% 510.000 410.000
Greystone Property
Purchase 1 % 1/00 1 % 1/20 4.75%-6.5001'0 2.085.000 1.895.000
III Water 452,732 356,400
Sewer 288,876 227,900
III Drainage 1.253.392 995.700
10/02/01 08/15/11 3.77% 1.995.000 1.580.000
Emergency Services
III Building 06/01/95 11/15/15 3.70%-5.55% 1.275.000 1.115.000
Water 564,000 564,000
III Sewer 905,000 905,000
Lighting 785.000 785.000
.. 02/25/03 03/01/23 4.00%-4.50% 2.254.000 2.254.000
TOTALS $ 39.715.680 $ 26.860.556
III 33
fill
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
..
..
NOTE F - Lonl!- Term Liabilities (Continued)
2. Statutory Installment Bonds
The Town may borrow an amount in the form of a statutory installment bond not to exceed
$1,000,000 for any purpose, which has a period of probable usefulness.
The Statutory Installment Bonds Payable as of December 31,2003 are as follows:
..
..
..
PURPOSE
Emergency Services
Building
ORIGINAL FINAL
ISSUE MATURITY INTEREST
DATE DATE RATE
ORIGINAL
AMOUNT
OF ISSUE
AMOUNT
OUTSTANDING
AT
DECEMBER 31,
~
,.
..
05/04/00
05/04/05
5.50%
$ 160.000
$
64.000
TOTALS
$ 160.000
$
64.000
..
..
3. In-Substance Defeasance of Debt
In October 2001, the Town issued $3,270,000 of General Obligation Bonds in two series, Series
A yielding a true interest rate of 3.72% and Series B yielding a true interest rate of 4.00%. The
purpose of these bonds was to advance refund two issues, 1991 Public Improvement debt, with
an outstanding balance of $1,870,000 and bearing interest at 6.5%; and 1994 Public
Improvement debt, with an outstanding balance of $1,155,000 and bearing interest at 6.0001ct.
The net proceeds of $3,190,941, after payment of $92,160 of underwriting, insurance and other
costs of issuance, and net of an original issue premium of $13,101, was used to purchase U.S.
government securities. Those securities were deposited in an irrevocable trust with an escrow
agent to provide for future debt service payments on both the 1991 and the 1994 Series bonds.
The refunding resulted in a net decrease in debt service payments of $250,540, representing an
economic (present value) gain of $213,899. As a result, the 1991 and 1994 Series bonds are
considered to be in-substance defeased, and the liability for those bonds has been removed from
the General Long Term Debt. On February 12, 2002, Series A was called and paid in full. As of
December 31,2003 $1,030,000 in Series B bonds considered defeased were outstanding.
..
..
..
..
..
..
..
34
ill
..
..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
..
NOTE F - Lonl!- Term Debt (Continued)
4. Chanl!es
The changes in the Town's indebtedness during the year ended December 31, 2003, are .
summarized as follows:
ilIII
III BALANCE BALANCE AMOUNTS
JANUARY 1, DECEMBER 31, DUE WITHIN
2003 INCREASE (DECREASE) 2003 ONE YEAR
.
Serial Bonds Note F.l $ 26,584,556 $ 2,254,000 $ (1,978,000) $ 26,860,556 $ 1,979,000
.. Statutory Installment Bonds
Bonds Note F.2 96,000 (32,000) 64,000 32,000
Compensated Absences
. Note A.8 128,422 7,080 135,502
Landfill Post Closure Costs
Note J.l 216,000 (14,426) 201,574 14,426
.. Judgement & Claims Note 1.1 40.000 40.000 80.000
TOTALS $ 27.064.978 $ 2.301.080 $ (2.024.426) $ 27.341.632 $ 2.025.426
.
5. Debt Service Reouirements
..
The annual requirements to amortize bonded debt, as of December 31, 2003, are as follows:
III
YEAR ENDING
DECEMBER 31. PRINCIPAL INTEREST TOTAL
2004 $ 2,011,000 $ 1,255,729 $ 3,266,729
2005 1,848,556 1,135,267 2,983,823
2006 1,790,000 1,063,155 2,853,155
2007 1,830,000 990,782 2,820,782
2008 1,875,000 912,304 2,787,304
2009-2013 9,350,000 3,209,715 12,559,715
2014-2018 5,350,000 1,282,382 6,632,382
2019-2023 2.870.000 248.344 3.118.344
TOTALS $ 26.924.556 $ 10.097.678 $ 37.022.234
..
..
ilIII
.,
..
35
..
.
.
.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
.
NOTE G - Oneratine: 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, 2003 amounted to $38,909. At December 31,
2003, the approximate annual operating lease commitments, subject to appropriation of funds,
were as follows:
.
.
YEAR ENDING
DECEMBER 31.
OPERATING
LEASES
-
-
2004
2005
2006
2007
2008
Thereafter
Total minimum lease payments
$
39,199
39,199
32,218
18,892
16,956
19.200
165.664
-
.
$
.
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 eleven such
capital projects with accumulated fund equity deficits totaling $5,619,439. In addition, there
were five capital projects with accumulated fund equity deficits totaling $189,528, whose
expenditures were funded by loans from other funds.
NOTE I - Commitments and Contine: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. Any return of property taxes made as a result of the
settlement of a tax certiorari case is funded by an increase in the property taxes collected in
the year subsequent to payment. The Town has recorded an estimated liability amounting to
$80,000 as Judgment and Claims, representing possible future settlements on tax certiorari
cases.
-
.
.
.
.
-
-
36
-
-
-
-
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
-
NOTE I - Commitments and Contine:ent Liabilities (Continued)
2. Grants
-
The Town has received amounts from grantor agencies, principally the Department of
Housing and Urban Development. Any allowed claims, including amounts already collected,
may constitute a liability of the applicable funds. The amount, if any, of expenditures, which
may be disallowed by the grantor agency, cannot be determined at this time.
-
-
3. Tn-Municioal Sewer Plant Exoansion
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, 2003, $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.
..
..
..
-
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. The balance available to the Town as of December 31, 2003 amounted to
$314,498, and is included in Cash from obligations - restricted.
4. Tn Municioal Sewer Plant Exoansion - Phase IllA
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 $10,378,716 in professional
fees and project costs to date. The Town issued bond anticipation notes through the
Environmental Facilities Corporation totaling $10,900,000 to fund present and future project
costs. Unspent bond proceeds are included in Cash from obligations - restricted, $477,987,
representing cash held by the Environmental Facilities Corporation and, included in Deposits
with other governments, is $137,054, representing cash held by the Tri-Municipal Sewer
Commission for project expenditures to be paid by that entity.
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. In addition, the
Town of Wappinger renewed a bond anticipation note in the amount of $955,444 to cover
costs not eligible for bonding on the project through New York State Environmental
Facilities Corporation.
..
..
-
-
..
..
-
37
..
.
.
.
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31. 2003
1M
NOTE I - Commitments and Contin2ent Liabilities (Continued)
.
5. Central Waooin2er Water Imorovement 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. The Town Board has
authorized the issue of $2,205,000 in bond anticipation notes to pay part of the costs of
aforesaid project.
The Town is planning to apply for long-term financing for the project through the New York
State Environmental Facilities Corporation.
1M
1M
The costs incurred on the project amounted to $4,981,423, as of December 31, 2003.
.
.
..
..
.
.
.
..
..
..
..
38
..
...
...
...
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
...
NOTE I - Commitments and Contin2ent Liabilities (Continued)
7. Authorized Debt
As of December 31, 2003 the Town has authorized, but not issued, the following new debt:
...
...
Authorization Authorized Unissued
PURPOSE ~ Amount Amount
Refunding Bonds 02101/99 $ 4,700,000 $ 1,430,000
Central Wappinger Water 02112/01 8,590,000 6,590,000
Town Recreation Center 09110/01 2,496,000 2,496,000
Road Improvement 03/01/03 3,300,000 6,590,000
Computer Hardware and
Software 03/01/03 550,000 6,590,000
Recycle Center 03/01/03 175,000 6,590,000
Highway Equipment 03/01/03 200,000 2,496,000
Wappinger Park Water 11/10/03 780.000 780.000
TOTALS $ 20.791.000 $ 33.562.000
NOTE J - Municioal Landfills
1. Castle Point Landfill
...
...
...
..
...
...
...
The Town has voluntarily entered into a Consent Order with the New York State Department
of Environmental Conservation to close, cap and monitor the landfill at Castle Point. The
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 $201,964.
The Town has recorded this liability in the Long Term Debt. 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 $14,426 in
monitoring costs during 2003. The future costs may be higher due to inflation, changes in
technology or subsequent changes in regulations.
...
...
...
The Town has been awarded $274,722 in grant funds through the New York State
Department of Environmental Conservation Landfill Closure Assistance Program, based on
eligible construction expenditures. To date the Town has received 900fc. of these grant
...
...
39
...
-
..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
..
NOTE J - MuniciDal Landfills (Continued)
monies from the State. The remaining 10% retainage will be released to the Town upon final
N.Y.S.D.E.C. approval.
..
2. Poupkeepsie-Wap'pinaers-LaGranae Joint T..andf"ill
..
..
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 ofWappingers 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 31,2003, amounted to $1,884.
..
-
The following is a summary of unaudited financial information at December 31, 2003,
which is included in the separate financial statements available from the Joint Landfill
Board of Governors c/o Joseph Davis, Town of Poughkeepsie, One Overocker Road,
Poughkeepsie, New York, 12603
..
..
Total Assets
Total Liabilities
Total Venture Equity
Total Revenues
Total Expenditures
$
$
$
$
$
221. 729
123.528
98.201
263.300
261.502
..
..
During 2002, violations were documented at the landfill and in 2003 an Order of Consent
was issued through the New York State Department of Environmental Conservation to
remediate Environmental Conservation Law and New York Codes Rule and Regulations
violations. To comply with this order the municipalities need to perform final closure of
the landfill under current regulations by December 31, 2005 and perform post closure care
and monitoring for a minimum of thirty years thereafter. The estimated cost of final
closure is $6,163,164. The estimated post closure and monitoring costs are $2,935,100.
All costs will be borne proportionately by each municipality; the Town of Wappinger's
share is 14.1728%. During 2003, the Town paid $35,432 to the Joint Venture for its
share of the planning for final closure.
..
..
..
-
To finance this project the municipalities have applied for a grant through the NYSDEC's
LCSAP program to the extent of $2,000,000. Additional funding will come from the
issuance of debt by each municipality.
..
40
-
..
..
..
TOWN OF WAPPINGER, NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONT'D.)
DECEMBER 31.2003
..
NOTE K - Subseauent Events
1. The Town has issued the following new debt:
..
TYPE
PURPOSE
ISSUE
DATE
MATURITY
DATE
Rate
AMOUNT
..
Bond Anticipation Central Wappinger
Note Water 04/29/04
04/29/05
2.00%
$ 7,520,000 ·
..
..
Bond Anticipation
Note Various Purpose 08/11/04
· Of this amount $2,800,000 is new funds.
08/11/05
1.65%
$ 2,836,600
..
2.
The Town has authorized, but not issued, the following new debt:
..
TYPE
PURPOSE
DATE
AUTHORIZED
AMOUNT
..
Serial Bonds Construction and
Maintenance 07/26/04 $ 240,000
..
Serial Bonds Joint Landfill 01/26/04 $ 850,368
..
..
3. The Town has agreed to comply with the Order of Consent issued through the New York
State Department of Environmental Conservation regarding the Poughkeepsie-
Wappingers-LaGrange Joint Landfill to perfonn final closure and post closure and
monitoring activities. See Note J for more detailed description.
..
III
III
..
41
..
..
..
..
..
..
..
..
REOUIRED SUPPLEMENAL INFORMATION
..
..
..
..
..
..
..
..
..
..
..
..
. EXHIBIT I
TOWN OF WAPPINGER, NEW YORK
BUDGETARY COMPARISON SCHEDULE
. GENERAL FUND
FOR THE YEAR ENDED DECEMBER 31. 2003
GENERAL FUND
III VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
. REVENUES
Real property taxes $ 1,324,037 $ 1,324,037 $ 1,323,997 $ (40)
Real property tax items 55,000 75,650 80,688 5,038
. Non property tax items 880,000 1,055,000 1,297,262 242,262
Departmental income 112,000 152,500 186,716 34,216
Use of money and property 158,390 162,690 178,604 15,914
. Licenses and permits 79,600 157,800 170,594 12,794
Fines and forfeitures 147,500 117,200 130,392 13,192
Sale of property and compensation for loss 5,000 8,456 3,456
Miscellaneous local sources 1,000 1,000 21,179 20,179
. State aid 768,000 1,055,554 1,573,513 517,959
Federal aid
- Total revenues 3,525,527 4, I 06,431 4,971,401 864,970
Appropriation of prior's year's fund balance 895,403 949,269 (949,269)
Total revenues and appropriation of
prior year's fund balance 4,420,930 5,055,700 4,971,401 (84,299)
-
EXPENDITURES AND ENCUMBRANCES
. General Government Support 1,487,095 1,805,464 1,787,382 18,082
Public safety 384,414 467,349 462,492 4,857
Health 3,000 3,500 3,468 32
. Transportation 164,472 178,522 178,027 495
Economic assistance & opportunity 11,225 14,725 9,474 5,251
Culture and recreation 690,114 677,532 638,099 39,433
Home and community service 342,314 626,564 609,066 17,498
- Employee benefits 446,780 529,328 515,579 13,749
Debt service 656,561 656,561 654,320 2,241
. Total expenditures and encumbrances 4,185,975 4,959,545 4,857,907 101,638
Excess (deficiency) of revenues and appropriation of
. prior year's fund balance over (under)
expenditures and encumbrances 234,955 96,155 113,494 17,339
Other financing sources (uses)
. Operating transfers in 15,045 7,845 8,017 172
Operating transfers out (250,000) (104,000) (104,000)
. Total other financing sources (234,955) (96,155) (95,983) 172
Excess (deficiency) of revenues and appropriation of
- prior year's fund balance and other sources
over (under) expenditures, encumbrances $ $ $ 17,511 $ 17,511
. The accompanying Notes to the Financial Statements
should be read in conjunction with these Financial Statements.
42
-
..
..
..
..
..
..
..
..
OTHER SUPPLEMENTAL INFORMATION
..
..
..
..
..
..
..
..
..
..
..
IIIIIl
TOWN OF WAPPINGER, NEW YORK
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31,2003
IIIIIl
..
HIGHWAY WATER SEWER LIGHT .
FUND FUND FUND FUND
ASSETS .
Cash and cash equivalents $ 106,433 $ 243,017 $ 1,643,183 $ 10,208
Receivables: .
Charges for services 179,233 410,420
Other 1,071 683
Due from other funds 4,688 38,152 -
Due from other governments 4,700
State and federal aid receivable 5,505
Prepaid expenses 4,275 -
Total assets $ 115,408 $ 428,009 $ 2,097,943 $ 10,208
.
..
LIABILITIES AND FUND EQUITY
LIABILITIES -
Accounts payable $ 7,795 $ 22,292 $ 30,577 $ 2,010
Accrued liabilities 3,202
.
Due to other funds 1,471 22,070 20,000
Total liabilities 12,468 44,362 50,577 2,010 .
FUND BALANCE
Fund balance (deficit): .-
Reserved for:
Prepaids 4,275
Unreserved: IIIIIiiI
Designated:
Subsequent year's expenditures 50,000 83,185 117,336 1,320
Undesignated 48,665 300,462 1,930,030 6,878 .
Total fund balance 102,940 383,647 2,047,366 8,198
Total liabilities -
and fund balance $ 115,408 $ 428,009 $ 2,097,943 $ 10,208
See independent auditor's report ..
43
..
.
EXHIBIT II
.
..
TOTAL
MISC SPECIAL NON-MAJOR
- GRANT GRANT GOVERNMENTAL
FUND FUND FUNDS
..
$ 99,036 $ 1,983 $ 2,103,860
-
589,653
1,754
- 42,840
4,700
5,505
- 4,275
$ 99,036 $ 1,983 $ 2,752,587
..
..
-
$ 14,583 $ $ 77,257
3,202
.. 43,541
- 14,583 124,000
-
4,275
-
30,000 281,841
- 54,453 1,983 2,342,471
84,453 1,983 2,628,587
-
$ 99,036 $ 1,983 $ 2,752,587
.
44
..
..
TOWN OF WAPPINGER, NEW YORK
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES ..
NON-MAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31,2003
..
HIGHWAY WATER SEWER
FUND FUND FUND ..
REVENUES
Property taxes $ 1,530,825 $ 559,875 $ 2,002,942
Property tax items ..
Departmental income 588,781 1,287,616
Intergovernmental charges 5,377
Use of money and property 9,698 11 ,724 568,750 ..
Sale of property and compensation for loss 694 1,950
Interfund revenues 16,000
Miscellaneous local sources 14,499 2,103 2,481 ..
State aid 150,033
Federal aid
..
Total revenues 1,727,126 1,164,433 3,861,789
EXPENDITURES ..
General government support
Health ..
Transportation 1 ,392,151
Home and community services 643,004 1,231,139
Employee benefits 315,466 3,224 1,212 ..
Debt service 179,517 586,170 2,495,141
Total expenditures 1,887,134 1,232,398 3,727,492 ..
Excess of revenues over expenditures (160,008) (67,965) 134,297
..
Other financing sources:
Operating transfers in 100,000 75,621 234,241
Operating transfers out (38,546) ..
Total other financing sources 100,000 37,075 234,241
..
Excess (deficiency) of revenue and other sources
over expenditures and other uses (60,008) (30,890) 368,538
..
Fund Balance, December 31, 2002 162,948 414,537 1,678,828
Fund Balance, December 31, 2003 $ 102,940 $ 383,647 $ 2,047,366 -
See independent auditor's report -
45
-
-
EXHIBIT III
-
- TOTAL
SPECIAL NON-MAJOR
LIGHT MISC GRANT GOVERMENTAL
- FUND FUND FUND FUNDS
$ 24,263 $ 226,200 $ $ 4,344,105
- 35 35
1,876,397
5,377
- 245 2,102 81 592,600
2,644
16,000
- 19,083
150,033
45,000 45,000
-
24,508 228,337 45,081 7,051,274
-
16 16
- 185,850 185,850
24,314 1,416,465
48,490 1,922,633
- 319,902
3,260,828
- 24,314 185,866 48,490 7,105,694
194 42,471 (3,409) (54,420)
-
409,862
- (38,546)
371,316
-
194 42,471 (3,409) 316,896
.
8,004 41,982 5,392 2,311,691
- $ 8,198 $ 84,453 $ 1,983 $ 2,628,587
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46
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TOWN OF WAPPINGER, NEW YORK
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENDED DECEMBER 31.2003
.
.
CURRENT YEAR FINDING:
Findine: 1 - Buildine: Deoartment Software
.
Findine::
During the audit we tested revenue in the Building department. In
April of 2003 new software (SCA) was implemented. Our test
work reveled the following:
. The clerks may enter amounts in to the system and print out a
receipt without saving into the system
. The SCA software does not assign automatic receipt number,
therefore receipt numbers are entered into manually
. At this point the SCA system is not capable of printing a
monthly report that includes all fees received. The Clerks are
preparing the monthly report, manually from the printed
receipts. This report is not reconciled to the system.
.
.
.
.
Cause:
The SCA system has not been set up with the proper internal
control procedures and does not have proper reporting capabilities
.
.
Effect: There is no control over the cash receipt's being disbursed or
recorded. Amounts in the system may be different than amounts
remitted to the Town Clerk and Comptroller. Clerks have to
recreate data that the software should be able to produce.
.
Recommendation: The SCA software consultant should set the parameters of the
system to include automatic receipt numbers. The software
consultant should be requested to make the software produce a
monthly report including all the fees received for the month. The
monthly report should then be reconciled to amounts received. If
the software is unable to produce this report then at least the
amounts received should be reconciled with the "Cashbook
receipts register".
.
.
.
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47
.
..
..
..
TOWN OF WAPPINGER, NEW YORK
SCHEDULE OF FINDINGS AND RECOMMENDATIONS
FOR THE YEAR ENDED DECEMBER 31.2003
..
OTHER MATTERS:
PRIOR YEAR FINDINGS - CONTINUING:
..
..
Findin2 2 - Escrow Funds
Findin2: Payments have been made in excess of escrow amounts collected
resulting in excess payments to individual project owners/developers.
Cause: The Town collects escrow funds to ensure that costs incurred by the
Town, while projects or subdivisions are being considered by the Planning
Board, are borne by the applicants. The Town maintains records for each
project/applicant so that balances can be monitored; however, in some
cases the disbursements exceeded the escrow collected.
..
..
..
Effect: Unanticipated liabilities could be incurred by the Town for which no
revenues/funds had been provided.
Recommendation: We note that the Town Board authorized legislation during 2002 which
provided for policies and procedures to ensure that the Town does not
subsidize applicant review costs. However we continue to note that as of
December 31, 2003 some significant old debit balances remain, amounting
to $66,067. We recommend that the Town continue to review the projects
involved, determining collectibility of these amounts and make
adjustments as necessary.
Findin2 3 - Recreation Fees
..
..
-
Findin2:
Recreation program registration records did not reconcile to receipt
records.
..
..
Cause: The registration records for two sport programs chosen as our sample did
not agree with the funds collected. In one instance the receipts were $170
less than amount collected on registration list. In the other instance only
participants paid with checks were on list and was $240 less than what
was deposited with the Town Clerk.
Effect: The Town can be collecting fewer fees.
Recommendation: Registration lists and funds collected should be verified before being
deposited, preferable by the Accounting Department, and discrepancies
investigated in a timely manner.
..
..
..
..
48
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TOWN OF WAPPINGER
SUPERVISOR
JOSEPH RUGGIERO
~t\~#)/-t. .
..r~'.'~~()~. -~.., '.~.~."".~f.~.~. -P. '.'.'
Y01 .,
h-,>,
'. ~.'~I
I, ~.~'
',.0\ .\",1
'. ~' . A., ."
\(\~~.. /~~{j
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TOWN COUNCIL
VINCENT BETTINA
MAUREEN McCARTHY
JOSEPH P. PAOLONI
ROBERT L. VALDATI
-
-
-
-
SUPERVISOR'S OFFICE
20 MIDDLEBUSH ROAD
WAPPINGERS FALLS, NY 12590-0324
(845) 297-2744
FAX: (845) 297-4558
..
TOWN OF WAPPINGER
FINDINGS AND RECOMMENDATIONS RESPONSES
TO AUDIT FOR THE YEAR ENDING DECEMBER 31,2003
-
-
Prior Year Finding
-
FINDING 1: Building Department Software - Clerks may enter amounts and print out a
receipt without saving information, software does not automatically assign receipt numbers, and
system does not allow monthly reports to be printed of all fees received.
-
..
RESPONSE 1: The Town of Wappinger is undergoing an overhaul of all department's
technology including software. In 2005, the Building Department will acquire new software that
will interface with the Town Clerk and Comptroller's office to better track transactions in a real
time snapshot. This new software will be implemented in 2005 and should rectify any concerns
of reconciliation.
-
FINDING 2: Escrow Fundi - Payments have been made in excess of escrow amounts
collected resulting in excess payments to individual project ownersldevelopers.
-
-
RESPONSE 2: The Town Board's implementation of new software in Planning, Building, and
Zoning shall expedite the closing of these escrows in 2005. The current process does not audit
and perform this function in a timely manner, which has manually prolonged the escrow
situation. There has been significant improvement in regards to the escrow situation since 2003.
The escrow balances have been reduced by 1/3.
-
.
FINDING 3: Recreation Fees - Recreation program registration records did not reconcile to
receipt records.
RESPONSE 3: The recreation department is presently using receipt books that are serially
numbered to avoid this situation. This problem was corrected in Fall 2004.
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49
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