2015 Financial Statements w
TOWN OF WAPPINGER,NEW YORK
FINANCIAL STATEMENTS
AS OF AND FOR THE YEAR ENDED
DECEMBER 31,2015
RECEIVED
OCT 0 3 2016
OWN OF WAPPINGER
TOWN CLERK
TOWN OF WAPPINGER,NEW YORK
TABLE OF CONTENTS
DECEMBER 31,2015
DESCRIPTION
PAGE (S)
Independent Auditors' Report
....................................................... 1-3
Independent Auditors' Report on Internal Control Over
Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance With Government Auditing Standards.............. ....4-5
Management's Discussion and Analysis (unaudited)
For The Year Ended December 31,2015 ...................... .....................................6-12
BASIC FINANCIAL STATEMENTS:
Government-Wide Financial Statements:
Statement of Net Position—December 31, 2015..................
Statement of Activities and Changes in Net Position—
For the Year Ended December 31, 2015........................
Fund Financial Statements:
Balance Sheet—Governmental Funds—December b r 31, 2015.................................................. 15-16
Reconciliation of Governmental Funds Balance Sheet
To The Statement of Net Position—December 31, 2015...........................................................17
Statement of Revenues, Expenditures and Changes
In Fund Balances- Governmental Funds—
For the Year Ended December 31, 2015................::................................................
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, 2015.....................................
Statement of Net Position—Fiduciary Fund—December 31, 2015
Notes to the Basic Financial Statements..................................................................................22-46
TOWN OF WAPPINGER,NEW YORK
TABLE OF CONTENTS (CONTINUED)
DECEMBER 31, 2015
REQUIRED SUPPLEMENTAL INFORMATION:
Exhibit I
Budgetary Comparison Schedule—
General Fund, Highway Fund,Water Fund and Sewer Fund - -
I
For the Year Ended December 31, 2015..............................................................................47-51
Exhibit II
Other Post-Employment Benefits Plan
Schedule of Funding Progress—December 31, 2015.................................................................52
Exhibit III
Schedule of the Proportionate Share
Of the Net Pension Liability—December 31, 2015......................... .............................53
Exhibit IV
Schedule of Pension Contributions—December 31, 2015 ........................................................54
OTHER SUPPLEMENTAL INFORMATION:
Exhibit V
Combining Balance Sheet—Non-Major
Governmental Funds—December 31, 2015 ............................................................................55
Exhibit VI
Combining Schedule of Revenues, Expenditures
and Changes in Fund Balances—Non-Major Governmental
Funds For the Year Ended December 31, 2015.......................................................................56
Exhibit VII
Schedule of Findings,Recommendations and Responses
For the Year Ended December 31, 2015..............................................................................57-60
4-1 KVANACORE SEDORE
DEBENEDICTUS & COMPANY
DIGOVANNI
WEDDELL CERTIFIED PUBLIC ACCOUNTANTS, P.C.
LDAIM LIABIISEYPARTNERSEUP
CMU'D ED PUBLICAccoUNTA2M BUS=-SD0aLOPNMNrCONSLUr&1M Navigating Your Success
INDEPENDENT AUDITORS REPORT
To the Supervisor and
Members of the Town Board
Town of Wappinger,New York
20 Middlebush Road
Wappingers Falls,New York 12590
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund,
and the aggregate remaining fund information of the Town of Wappinger, New York, as of and for the
year ended December 31, 2015, and the related notes to the financial statements, which collectively
comprise the Town of Wappinger,New York's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America,
this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement,whether due to fraud or error.
Auditors'Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perforin the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements,whether due to fraud or error.
In making those risk assessments,the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accountingpolicies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
I1 Racquet Road 2678 South Road Suite 101
Newburgh,NY 12550 Poughkeepsie,NY 12601
(845)567-9000 Fax(845)567-9228 (845)485-5510 Fax(845)485-5547
www.vddw.com vv ww.sedoreco.com
1
statements in order to design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the entity's internal control.
Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
_ basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, each major fund, and the
aggregate remaining fund information of the Town of Wappinger, New York, as of December
31, 2015, and the respective changes in financial position for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As described in Note M to the financial statements, in 2015, the Town adopted new accounting
guidance, GASB Statement No. 68, Accounting and Financial Reporting for Pensions, an
amendment of GASB Statement 2. Our opinion is not modified with respect to this matter.
Prior Period Adjustment
As more further described in Note N, the Town has re-stated beginning net position to reflect the
recording of additional infrastructure assets.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management's discussion and analysis, budgetary comparison information, and other post-
employment benefits schedule of funding progress, as listed in the table of contents,be presented
to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency
with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
2
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the Town of Wappinger, New York's basic financial statements. The
combining non-major fund schedules are presented for purposes of additional analysis and are
not a required part of the basic financial statements.
The combining non-major fund schedules are the responsibility of iminagemenfand were derived
from and relate directly to the underlying accounting and other records used to prepare the basic
financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United
States of America. In our opinion, the combining non-major fund schedules are fairly stated in
all material respects in relation to the basic financial statements as a whole.
Merger
The financial statements of the Town of Wappinger,New York for the year ended December 31,
2015, were audited by Sedore & Company, C.P.A.'s, P.C., independent auditors,whose partners
merged with Vanacore, DeBenedictus, DiGovanni & Weddell, C.P.A.'s LLP on July 1, 2016.
Sedore & Company, C.P.A.'s P.C.'s report dated August 19, 2016, stated that they were not
aware of any material modifications that should be made to the financial statements in order for
them to be in conformity with accounting principles generally accepted in the United States of
America.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated August
19, 2016, on our consideration of the Town of Wappinger, New York's internal control over
financial reporting and on our tests of its compliance with certain provisions of laws,regulations,
contracts, and grant agreements and other matters. The purpose of that report is to describe the
scope of our testing of internal control over financial reporting and compliance and the results of
that testing, and not to provide an opinion on internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering Town of Wappinger, New York's internal control over
financial reporting and compliance.
Poughkeepsie,New York
August 19, 2016
3
VANACORE SEDORE
DEBENEDICTUS & C O M PA N'Y
DiGOVANNI
WEDDELL CERTIFIED PUBLIC ACCOUNTANTS, P.C.
L314=LT OU=PARTNERSHIP
CERTIFIED PUBLIC ACCOUNTANTS BUSINESSDL-VEL0P&IE-?CCODISULT3NTS Navigating Your Success
INDEPENDENT AUDITORS' REPORT ON INTERNA12CONTROL OVER
FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENTAUDITINGSTANDARDS
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, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States,the financial statements of governmental activities,
each major fund, and the aggregate remaining fund information of the Town of Wappinger,New York, as
of and for the year ended December 31, 2015, and the related notes to the financial statements, which
collectively comprise the Town of Wappinger,New York's basic financial statements and have issued our
report thereon dated August 19, 2016.
Internal Control Over Financial Reporting
In planning and performing our audit,we considered the Town of Wappinger,New York's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements but not for the
purpose of expressing an opinion on the effectiveness of the Town of Wappinger, New York's internal
control. Accordingly,we do not express an opinion on the effectiveness of the Town of Wappinger,New
York's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A
significant deficiency is a deficiency,or a combination of deficiencies,in internal control that is less severe
than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and was not designed to identify all deficiencies in internal control that
might be material weaknesses or significant deficiencies and therefore,material weaknesses or significant
deficiencies may exist that were not identified. Given these limitations,during our audit we did not identify
any deficiencies in internal control that we consider to be material weaknesses. We did identify certain
deficiencies in internal control,described in the accompanying Schedule of Findings, Recommendations
and Responses (Findings 1 and 2) that we consider to be significant deficiencies.
11 Racquet Road 2678 South Road Suite 101
Newburgh,NY 12550 Poughkeepsie,NY 12601
(845)567-9000 Fax(845)567-9228 (845)485-5510 Fax(845)485-5547
w%mvddw.com www.sedoreco.com 4
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Wappinger, New York's
financial statements are free of material misstatement, we performed tests of its compliance with
certain provisions of laws, regulations, contracts and grant agreements, noncompliance with
which could have a direct and material effect on the determination of financial statement
amounts. However, providing an opinion on compliance with those provisions was not an
_objective of our audit-and, accordingly, we do not express such an opinion._The results of our
tests disclosed instances of noncompliance or other matters that are required to'be reported under
Government Auditing Standards and which are described in the accompanying Schedule of
Findings, Recommendations and Responses (Findings 3 and 4).
Town of Wappinger,New York's Response to Findings
Town of Wappinger, New York's response to the findings identified in our audit is described in
the accompanying schedule of findings and questioned costs. Town of Wappinger, New York's
response was not subjected to the auditing procedures applied in the audit of the financial
statements and, accordingly,we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of
mom
the Town of Wappinger,New York's internal control or on compliance. This report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the
Town of Wappinger, New York's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
Poughkeepsie,New York
August 19, 2016
i -
i
5
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information
For the Year Ended December 31,2015
(Un-audited)
1. Overview of the Financial Statements
These Audited Financial Statements consist of five parts. The Independent Auditors' Report on
our Financial Statements, Management's Discussion and Analysis (this section), Government
Wide Financial Statements, Fund Financial Statements and Notes to the Financial Statements.
-Government-Wide Financial Statements provide both long term and short term information
about the Town's overall financial status. They report information about the Town as a whole
using accounting methods similar to private sector companies.
-Fund Financial Statements focus on the individual parts of Town government, reporting the
Town's operations in more detail than the Government Wide Financial Statements. They focus
on the most significant or "major" funds-not the Town as a whole. See Note A in the notes to
the financial statements for information regarding individual.types of funds.
-Notes to the Financial Statements provide further explanation and support for the information
contained in the Financial Statements.
2. Financial Analysis of the Town as a whole
SUMMARY OF STATEMENT OF NET POSITION
Assets 2015 2014 Change
Non-Capital $ 16,564,719 $ 14,516,207 $ 2,048,512
Capital 65,355,616 57,171,179 8,184,437
Total Assets 81,920,335 71,687,386 10,232,949
Deferred Outflow.of Resources 939,091 618,304 320,787
Total Assets and Deferred Outflow of Resources $ 82,859,426 $ 72,3051690 $ 10,553,736
Liabilities
Current $ 12,749,033 $ 9,669,828 $ 3,079,205
Non-Current 20,256,195 21,203,360 (947,165)
Total Liabilities 33,005,228 30,873,188 2,132,040
Deferred Inflow of Resources 22,046 25,196 (3,150)
Total Liabilities and Deferred Inflow of Resources 33,027,274 30,898,384 2,128,890
itNet Position
Capital 42,398,583 36,742,794 5,655,789
Restricted 963,182 1,113,162 (149,980)
Unrestricted 6,470,387 3,551,350 2,919,037
Total Net Position 49,832,152 41,407,306 8,424,846
Total Liabilities and Net Position $ 82,859,426 $ 72,305,690 $ 10,553,736
6
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31, 2015
(Un-audited)
2. Financial Analysis of the Town as a whole (Continued)
SUMMARY OF STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION
Revenues _ - 2015 2014- — -- Change
Program
Fines,Fees&Charges $ 4,397,224 $ 4,274,960 $ 122,264
Operating Grants 5,215 - 5,215
Capital Grants 481,915 3,308,980 (2,827,065)
General Revenues
Property Taxes 8,125,786 7,989,913 135,873
Other Taxes 2,027,764 2,089,939 (62,175)
Investment Earnings 361,787 407,241 (45,454)
Other Grants and Contributions 266,900 268,400 (1,500)
Other Revenues 135,827 162,120 (26,293)
Total Revenues 15,802,418 18,501,553 (2,699,135)
Expenses
General Government Support 2,362,489 2,667,278 (304,789)
Public Safety 684,766 673,991 10,775
Health 403,119 402,492 627
Transportation 3,860,403 4,089,383 (228,980)
Economic Assistance 2,237 5,975 (3,738)
Culture and Recreation 914,285 659,494 254,791
Home and Community Service 5,345,476 4,845,160 500,316
Interest on Long Term Debt 765,965 840,045 (74,080)
Total Expenses 14,338,740 14,183,818 154,922
Change in Net Position 1,463,678 4,317,735 (2,854,057)
Net Position-beginning 41,407,306 18,608,802 22,798,504
Implementation of GASB 68 (30,395) - (30,395)
Prior Period Adjustment 6,991,563 18,480,769 (11,489,206)
Net Position-beginning,restated 48,368,474 37,089,571 11,278,903
NetTosition-ending $ 49,832,152 $ 41,407,306 $ 8,424,846
Governmental Funds:
GENERAL FUND
The General Fund consists of the General Town-Wide Fund and the General Part-Town
Fund. The General Town-Wide includes activities of the Parklands Trust Fund, Friends of
Carnwath and the 9-11 Memorial Fund. The General Fund is the chief operating fund of the
Town. At the end of the year, the total fund balance of the General Town-Wide Fund was_,
$2,928,130, an increase of$444,058 from the prior year. $81,487 of the total General Town-
Wide Fund balance is in non-spendable form(made up of inventory and prepaid expenses).
7
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information (Continued)
For the Year Ended December 31,2015
(Un-audited)
GENERAL FUND (Continued)
The remaining $2,846,643 is in spendable form as follows: $108,800 is,restricted for debt
- - - - - service payment, $963,182 is restricted for recreation, and the remaining $1,774,661
represents spendable, unassigned fund balance. The total fund balance in the General Part-
Town Fund at the end of the year was $2,493,149, an increase of$378,709 from the prior
Year. The surplus in the general fund was mainly due to better than expected revenue from
sales tax, franchise fee, building permits, fines & fees from the Justice court, and mortgage
tax.
The following charts describe significant categories of General Fund revenues and expenses:
General Fund revenues 2035
13 PropertyTaxes&Tax Items
5 9 State&Federal Aid
4% a Sales and Franchise Tax
° il Use of Money&Property
TA Departmentai income
1%
sa Fines,Licenses and Permits
W Ail'Other
!
j
i I I
General Fund Expenses 2015.
1 aGeneral Government Support
0%
>Q Public Safety
uTransportation
l W Culture and Recreation
I
0 Home and Community Services
id Employee Benefits
ij Debt Service
4%
kJAI I Other
8
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2015
(Un-audited)
I` HIGHWAY FUND
The Highway Fund ended the year with $1,467,341 in Fund Balance, of which $568,955 is
non-spendable, $28,077 is restricted for debt service payment and $870,309 is assigned for
highway activities.
The following charts describe the significant categories of Highway Fund revenues and
f expenses:
—_
Im
Highway Fund Revenues 2015
f 0%
i
� 6°fa sd
0 Property Taxes.
13 Sales Tax
U State&Federal Aid
Ef Other Revenue
1
Highway Fund Expenses 2015
li Street Maintenance
a , l 6 Permanent Road
f rp,
Improvements �
W Snow Removal
fia General Government
Support
ia Machinery Purchase
and Maintenance
w Employee Benefits
is Debt Service
t
9
'i
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2015
(Un-audited)
WATER FUNDS
The Town operated four water districts during 2015 with an overall Fund Balance of
$2,032,728. Operating revenues totaled $2,076,126 with operating expenses totaling
$1,859,991 resulting in an excess of revenues over expenditures in the amount of$216,135.
The excess is the result of strong and prudent budgeting practices.
SEWER AND DRAINAGE FUNDS
The Town operated fourteen sewer and drainage districts during 2015, with an overall fund
balance of$2,222,158, the main sewer district being the United Wappinger Sewer District,
with a fund balance of$1,802,557. Operating revenues for the combined sewer and drainage
districts totaled $3,478,737 with operating expenses totaling$3,411,813 resulting in a modest
excess of revenues over expenditures in the amount of$66,924.
BUDGETARY HIGHLIGHTS
The Town Budget is adopted in November each year for the following year and is modified
throughout the year as necessary. Variances in budgetary revenues and expenditures have
been explained in the paragraphs above.
3. Activities regarding capital assets,long and short term debt
The Town spent approximately $3.3 million on ten capital projects in 2015. The top five
projects were: Filtration of Atlas & Hilltop wells and the Meadowwood and Route 9 loops,
United Wappinger Water Meter Replacement, Replacement of Town Hall Roof, resurfacing
of various town roads, and the Wappinger Water Main Extension project sponsored by New
York City Department of Environmental Protection (NYCDEP). The five projects accounted
for ninety-seven percent (97%)-of the total capital expenditures.
Phase I of the Wappinger Water Main Extension project above was completed in 2013. Phase
I of the project involved the construction of the water main from United Wappinger Water
District to NYCDEP Shaft 6 parcel on River Road. Phase II of the project involved the
installation of a new water distributionsystem
in the Chelsea Hamlet area was substantially
completed in 2015.
The filtration improvements, consisting of the installation of cartridge filtration units at the
Atlas and Hilltop well fields and the construction of water main connection loops for the
Meadowwood well field and the Route 9 area was initially estimated to cost $4,040,000 but
later revised to $3,621,000 by the Town's Engineer. The project is currently in progress.
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31, 2015
(Un-audited)
3e Activitiesregarding p re ardin capital assets,long and short term debt(Continued)
Long Term Debt
The Town improved its credit rating in June 2015 to Aa3 from Al by Moody's Investors
Service. The upgrade reflects the town's significantly improved financial position driven by
the adoption of strong budgetary controls and the elimination of fund balance appropriations.
The Aa3 rating farther incorporates the town's large, residential tax base with above average
resident wealth levels, elevated debt compared to budget size, and low pension burden. The
rating upgrade will allow for better competitive bidding for fature debt issues. In March
2016, Standards and Poor's assigned a rating of AA to the Town's refunding bonds of 2016
citing the Town's strong liquidity and budgetary flexibility, supported by strong
performance.
Total long term serial bond debt at the end of 2015 was $17,500,000. Of this debt,
$3,228,476 is attributable to the General Fund and $3,398,146 to the Highway Fund. The
majority of the Town's debt is attributable to its water and sewer districts amounting to
$6,613,941 and $4,259;437, respectively. Water and sewer debt is paid by the property
owners in the respective districts.
In September 2015, the Town issued a Bond Anticipation Note in the amount of$3,788,610.
Out of this,$650,000 was borrowed for the purpose of resurfacing various roads within the
Town, $945,000 was borrowed on behalf of the United Wappinger Sewer District, being the
district's share of the cost of the replacement of the existing mechanical agitation aeration
system at the Tri-Municipal Sewerage Treatment Plant, $1,793,000 to pay for the purchase
and installation of replacement water meters in the United Wappinger Water District after a
series of meter reading equipment failure, and $400,610 for the replacement of the Town hall
roof.
In December 2015, the Town Board authorized the issuance of bonds to purchase heavy duty
trucks and tractors for the Highway Department at a cost of $505,000 for maintenance
purposes. In March 2016, the Town issued Public Improvement (Serial) Bonds, in the
amount of$5,840,610 by converting existing outstanding Bond Anticipation Notes to Serial
Bonds. Repayments for the$5,840,610 Serial bonds will begin in 2017 through 2036.
In April 2016 The Town Board refunded the $11,580,000 Serial Bonds 2007 and a portion
of the $3,362,000 Serial Bonds 2009 Bond to realize a net present value savings of
approximately $942,000 over 13 years by issuing the new $8,520,000 refunding serial bonds,
2016. Repayments for the refunded bonds will begin in 2016 and continue until 2029.
Il
MANAGEMENT'S DISCUSSION AND ANALYSIS
Required Supplemental Information(Continued)
For the Year Ended December 31,2015
(Un-audited)
Short Term Debt
The town had total Bond Anticipation Notes (BAN) Outstanding of$9,224,610 and the end
of 2015 made up of a$5,436,000 BAN Series A issued in March 2015, and $3,788,610 BAN- -
Series B issued in September, 2015. Bond Anticipation Notes totaling $3,438,000 were
renewed in March 2016, and a $5,840,610 Public Improvement (Serial) Bond issued at the
same time for the balance of outstanding Bond Anticipation Notes.
4. Currently Known Facts Bearing on the Future
The Town participated in the Southern Dutchess Consortium for the 2007 revaluation of
property assessments. The 2007 revaluation successfully brought all property assessments to
full valuation and provided equitable tax distribution among all homeowners within the town,
county and shared school districts. This revaluation went into effect for the 2008 tax levy and
has continued every year.
The Town continues to have a shared service agreement with the Town of Fishkill for a Joint
Assessor. This program is known as the Coordinated Assessment Program or CAP. The CAP
has and will continue to deliver cost savings to the Town.
The assessment roll established in 2015 for 2016 taxes resulted in homestead assessments
decreasing by an average of 0.42%. However, there was no change in the proportion of non-
homestead to homestead assessments. Non-homestead assessments for 2016 are 43% of the
total and homestead assessments are 57%, remaining steady as in 2015. The Town adopted NOR
an overall tax levy increase of 0.73%in 2016 down from 1.53% in 2015.
The Town signed a Memorandum of Agreement with CSEA for highway employees min
covering the fiscal year 2014 through 2015. Likewise, the Town secured a collective
bargaining agreement with the Teamsters Union covering the period 2014 through 2017. The
Town is currently negotiating with both Unions.
12
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF NET POSITION
DECEMBER 31,2015
GOVERNMENTAL'
ACTIVITIES
ASSETS
Current assets:
Cash and cash equivalents $ 11,488,229
Cash and cash equivalents-restricted 2,236,585
Receivables(net) 2,277,748
Inventories 412,083
Prepaid expenses 150,074
Total current assets 16,564,719
Capital assets:
Land 8,162,217
Infrastructure,net of depreciation 42,606,826
Buildings,machinery and equipment,net of depreciation 6,725,611
Construction in progress 7,860,962
Total capital assets 65,355,616
Total assets 81,920,335
Deferred outflow of resources 939,091
Total assets and deferred outflow of resources $ 82,859,426
LIABILITIES
Current Liabilities:
Accounts payable $ 602,193
Accrued liabilities and retainage payable 323,071
_ Bond anticipation notes payable 9,224,610
Deferred revenue 830,359
Due to customers 13,375
Due to other governments 48,167
Current portion of long-term liabilities
Landfill remediation liability 7,258
Bonds payable-Capital 1,028,617
Bonds payable-Non-capital 671,383
Total current liabilities 12,749,033
Non-current liabilities:
Judgment and claims 80,000
Compensated absence liabilities 317,854
Other postemployment benefits-liability 3,608,676
Landfill remediation liability 148,487
Bonds payable-Capital 11,851,401
Bonds payable -Non-capital 3,948,599
- Net employee retirement system liability 301,178
Total non-current liabilities 20,256,195
Total liabilities 33,005,228
Deferred inflow of resources 22,046
Total liabilities and deferred inflow of resources 33,027,274
NET POSITION
Invested in capital assets,net of related debt 42,398,583
Restricted for recreation
963,182
Unrestricted 6,470,387
Total net position 49,832,152
Total liabilities and net position $ 82,859,426
See independent.auditors'report. 13
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF ACTIVITIES AND CHANGES IN NET POSITION
FOR THE YEAR ENDED DECEMBER 31,2015
NET(EXPENSE)
REVENUE AND
CHANGES IN
NET POSITION
CHARGES OPERATING CAPITAL
FOR GRANTSAND GRANTSAND GOVERNMENTAL
FUNCTIONS/PROGRAMS EXPENSES SERVICES CONTRIBUTIONS CONTRIBUTIONS ACTIVITIES
Governmental Activities:
General government support $ 2,362,489 $ 15,920 $ 5,215 $ - $ (2,341,354)
Public safety 684,766 675,609 - - (9,157)
Health 403,119 5,493 - - (397,626)
Transportation 3,860,403 700 - 228,000 (3,631,703)
Economic assistance&opportunity 2,237 - - - (2,237)
Culture and recreation 914,285 73,969 - - (840,316)
Home and community services 5,345,476 3,625,533 - 253,915 (1,466,028)
Interest on long-term debt 765,965 - - - (765,965)
Total governmental activities 14,338,740 4,397,224 5,215 481,915 (9,454,386)
General revenues
i
Taxes:
Real property taxes 8,039,624
Real property tax items 86,162
Sales tax distribution 1,083,275 ;
Mortgage tax distribution 494,053
Franchise taxes 450,436
Unrestricted investment earnings 361,787
Grants and contributions not restricted to specific programs 266,900
Special item-Gain on sale of property and compensation for loss 63,891
Refund of prior year's expenditures 39,085
r
Miscellaneous 32,851
Total general revenues,special items and transfers 10,918,064
Change in net position 1,463,678 j
Net position-beginning 41,407,306
Implementation of GASB 68 adjustment (30,395)
Prior period adjustments 6,991,563
Net position-beginning,restated 48,368,474
Net position-ending $ 49,832,152 j
i
See independent auditors'report. 14
BL
(THIS PAGE HAS BEEN INTENTI®NALLY LEFT ANK).
I
TOWN OF WAPPINGER,NEW YORK
BALANCESHEET
GOVERNMENTAL FUNDS
DECEMBER 31,2015
GENERAL GENERAL
TOWN-WIDE PART-TOWN HIGHWAY
FUND FUND FUND
ASSETS
Cash and cash equivalents $ 1,840,168 $ 1,416,419 $ 1,165,955
Cash and cash equivalents-restricted 1,071,982 566,950 28,077
Receivables:
Charges for services - - -
Other 68,121 148,202 -
Due from other funds 4,386 -
Due from other govermnents 39,715 366,841 -
State and federal aid receivables 94,722 - -
Inventory, at cost - - 412,083
Prepaid expenses 81,487 37,516 156,872
Total assets $ 3,200,581 $ 2,535,928 $ 1,762,987
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable $ 185,190 $ 32,060 $ 91,089
Due to customers - - -
Bond anticipation notes payable - - -
Due to other funds 57,669 10,719 204,403
Due to other governments 27,255 - 154
Deferred revenues 2,337 -Total liabilities 272,451 42,779 295,646
FUND BALANCE
Nonspendable:
Prepaids and inventory 81,487 37,516 568,955
Restricted:
Debt service 108,800 164,050 28,077
Miscellaneous - 402,900 -
Recreation 963,182 - -
Assigned - 1,888,683 870,309
Unassigned 1,774,661 - -
Total fund balance 2,928,130 2,493,149 1,467,341
Total liabilities and fund balance $ 3,200,581 $ 2,535,928 $ 1,762,987
See independent auditors'report. 15
CAPITAL NON- TOTAL
WATER SEWER PROJECTS MAJOR GOVERNMENTAL
FUND FUND FUND FUNDS FUNDS
$ 1,550,517 $ 1,061,128 $ 4,356,756 $ 97,286 $ 11,488,229
86,694 482,882 - - 2,236,585
471,252 823,697 - - 1,294,949
- - - 216,323
36 58,062 239,850 - 302,334
- - - - 406,556
- - - 94,722
- - - - 412,083
625 - - - 276,500-
$ 2,109,124
76,500$ 2,109,124 $ 2,425,769 $ 4,596,606 $ 97,286 $ 16,728,281
$ 44,418 $ 171,913 $ 74,018 $ 3,505 $ 602,193
13,375 - - - 13,375
- - 9,224,610 - 9,224,610
6,413 23,130 - - 302,334
12,190 8,568 - - 48,167
- - 828,022 - 830,359
76,396 203,611 10,126,650 3,505 11,021,038
i -
625 - - - 688,583
86,694 482,882 - - 870,503
- - - - 402,900
i - - - - 963,182
1,945,409 1,739,276 - 93,781 6,537;458
- - (5,530,044) - (3,755,383)
i 2,032,728 2,222,158 (5,530,044) 93,781 5,707,243
$ 2,109,124 $ 2,425,769 $ 4,596,606 $ 97,286 $ 16,728,281
See independent auditors'report. 16
TOWN OF WAPPINGER,NEW YORK
RECONCILIATION OF GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
DECEMBER 31,2015
Total fund equity for governmental funds $ 5,707,243
------- Total net position reported for governmental activities in the statement
of net position is different because:
Capital assets used in governmental activities are not
financial resources and therefore are not reported in the funds. 65,355,616
Long-term liabilities,including bonds payable,landfill remediation,
compensated absences, other postemployment benefits,
judgement and claims and net employee retirement system
liabilities are not due and payable in the current period
and therefore are not reported in the funds. (21,963,453)
Grants received for capital assets are deferred and amortized
over the life of the asset. (22,046)
Residual fund balance and related receivables from the
Tri-Municipal Sewer Commission is not reported in the funds. 587,953
Deferred outflows related to the employee retirement system
liability are not reported in the funds. 616,336
Prepaid expenses related to the employee retirement system are reported
in the funds,but are adjusted in the government wide statements. (126,426)
Retainage payable is not reported in the funds. (72,234)
Accrued interest is not reported in the funds. (250,837)
Total net position of governmental activities $ 49,832,152
See independent auditors'report. 17
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED DECEMBER 31,2015
GENERAL GENERAL
TOWN-WIDE PART-TOWN HIGHWAY
FUND FUND FUND
-- REVENUES
Real property taxes $ 2,668,229 $ - $ 2,998,806
Real property taxes items 84,929 - -
Non property taxes items - 1,108,670 425,041
Departmental income 129,350 148,484 -
Use of money and property 217,902 949 910
5 144 290
permits >038 700
Licenses and perrm
Fines and forfeitures 349,567 - -
Sale of property and compensation for loss 47,637 3,400 81
Miscellaneous local sources 39,315 5,038 1,000
State aid 766,168 - 224,850
Total revenues 4,308,241 1,556,579 3,651,388
EXPENDITURES
General government support 1,664,084 152,548 137,387
Public safety 35,097 425,258 -
Health 4,838 - -
Transportation 171,567 373063 2,086,395
Economic assistance&opportunity 650 1,587 -
Culture and recreation 751,696 70,115 -
Home and community services 219,686 142,127 -
Employee benefits 622,478 226,946 771,729
Debt service 394,087 122,226 409,100
Total expenditures 3,864,183 1,177,870 3,404,611
Excess of revenues over expenditures 444,058 378,709 246,777
Other financing sources:
BANs redeemed from appropriations - - -
Total other financing sources - - -
I:
Excess (deficiency) of revenue and other
sources over expenditures and other uses 444,058 378,709 246,777
Fund Balance,December 31,2014 2,484,072 2,114,440 1,220,564
Fund Balance,December 31,2015 $ 2,928,130 $ 2,493,149 $ 1,467,341
See independent auditors`report. 18
CAPITAL NON-
WATER SEWER PROJECTS MAJOR TOTAL
FUND FUND FUND FUNDS FUNDS
$ 733,261 $ 1,194,901 $ - $ 444,427 $ 8,039,624
1,233 -86,162 ------
- - - - 1,533,711
1,327,979 2,145,962 - - 3,751,775
2,113 137,874 1,928 111 361,787
- - - - 295,882
- - - - 349,567
12,773 - - - 63,891
- - 280,500 - 325,853
- - 991,018
2,076,126 3,478,737 282,428 445,771 15,799,270
17,372 100 691,226 - 2,662,717
- - - - 460,355
- 395,000 399,838
- 368,437 45;148 2,708,610
- - 97 - 2,334
- - - - 821,811
1,148,325 2,173,415 2,220,683 - 5,904,236
3,856 2,257 - - 1,627,266
690,438 1,236,041 - - 2,851,892
1,859,991 3,411,813 3,280,443 440,148 17,439,059
216,135. 66,924 (2,998,015) 5,623 (1,639,789)
- - 15,000 - 15,000
- - 15,000 - 15,000
216,135 66,924 (2,983,015) 5,623 (1,624,789)
1,816,593 2,155,234 (2,547,029) 88,158 7,332,032
$ 2,032,728 $ 2,222,158 $ (5,530,044) $ 93,781 $ 5,707,243
See independent auditors'report. 19
i
I! TOWN OF WAPPINGER,NEW YORK
RECONCILIATION OF STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
�yy FOR THE YEAR ENDED DECEMBER 31.2015
l
Net change in fund balance-total government funds $(1,624,789)
The change in net position reported for governmental activities in the
statement of activities is different because:
Governmental funds report all capital outlays as expenditures. However,in the .
statement of activities,the cost of certain assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
capital outlays exceeded depreciation expense in the current period. 1,192,874
Grants received for capital projects are amortized over the life of the asset.
This is the amount by which the grant exceeded the amortization in the
current period. 3,150
e reported as financing sources in governmental funds and
Bond proceeds ar g
p p
thus contribute to the change in fund balance. In the statement of net position,
-tern liabilities and does not affect the
however,issuing debt increases long
statement of activities. Similarly,repayment of principal is an expenditure in
the governmental funds but reduces the liability in the statement of net position.
Debt issued:
Bond anticipation notes redeemed (15,000)
Repayments:
Bond anticipation note principal 15,000
Bond principal 2,048,000
2,048,000
In the statement of activities,interest is accrued on outstanding bonds,whereas
in governmental funds,an interest expenditure is reported when due. This amount
represents the change between what was paid and what was accrued through 2015. 22,927
Change in residual fund balance due from the Tri-Municipal Sewer Commission
is not reported in the funds. (30,351)
Change in net employee retirement system liability and related deferred outflows
is not reported in the funds. 219,130
Some expenses reported in the statement of activities,such as retainage payable,
compensated absences,landfill liabilities, and postemployment benefits do not
require the use of current financial resources and therefore are not reported as
expenditures in governmental funds. This amount represents the change between
what was paid and what was accrued through 2015. (367,263)
Net change in net position of governmental activities $ 1;463,678
See independent auditors'report.
TOWN OF WAPPINGER,NEW YORK
STATEMENT OF NET POSITION
FIDUCIARY FUND
DECEMBER 31,2015
AGENCY
FUNDS
ASSETS
Cash and cash equivalents $ 429,009
Total assets $ 429,009
LIABILITIES
Escrow funds returnable and other liabilities $ 429,009
Total liabilities 429,009
NET POSITION -
Total liabilities and net position $ 429,009
i
See independent auditors'report. 21
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31,2015
NOTE A- Summary of Significant Accounting Policies
The Town of Wappinger, New York, ("Town") was incorporated on May 20, 1875, under the
provisions of the State of New York. The Town operates under a Town Board form of
government, consisting of a Supervisor and four Councilmen/women. The Supervisor serves as
the Chief Executive Officer and as the Chief Fiscal Officer of the Town.
The Town provides the following services: highway maintenance, water, sewer, planning,
zoning,building and safety inspection,lighting, and culture and recreation.
The Town's financial statements are prepared in accordance with accounting principles generally
accepted in the United States of America as applied to governmental units (GAAP). The
Governmental Accounting Standards Board (GASB) is responsible for establishing GAAP for
state and local governments through its pronouncements (Statements and Interpretations). The
Town is also required to follow the pronouncements of the Financial Accounting Standards
applicable)Board (FASB) issued through November 30, 1989, (when that do not conflict with or
contradict GASB pronouncements,in preparing its government-wide financial statements.
The more significant accounting policies established by GAAP. and used by the Town in
preparing its government-wide and fund financial statements are discussed below.
1. The Reporting Entity
The Town, for financial purposes, includes all of the funds relevant to the operations of the
Town of Wappinger, New York. The financial statements include organizations, function
and activities that are controlled by or dependent upon the Town. Control or dependence is
determined on the basis of budget adoption, taxing authority, funding and appointment of the
respective governing o
vernin board. Under these criteria no other entities are included in the Town's
financial statements.
2. Basic Financial Statements–Government-Wide Statements
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.
In the government-wide Statement of Net Position, 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 position is 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.
22
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE A- Summary of Significant Accounting Policies (Continued)
2. Basic Financial Statements—Government-Wide Statements (Continued)
The government-wide Statement of Activities reports both the gross and net cost of each of
the Town's functions or activities. The functions are also supported by general government
revenues (property and sales taxes, certain intergovernmental -revenues,-fines, permits-and— -- ---
charges, etc.). The Statement of Activities reduces gross expenses (including depreciation)by
related program revenues, operating and capital grants. Program revenues must be directly
associated with the function (public works, community and youth services, etc.). Operating
grants include operating-specific and discretionary (either operating or capital) grants while
the capital grants column reflects capital-specific grants.
The net costs are normally covered by general revenue (property, sales or mortgage taxes,
intergovernmental revenues, interest income, etc).
This government-wide focus is more on the sustainability of the Town as an entity and the
change in the Town's net position resulting from the current year's activities.
3. Basic Financial Statements—Fund Financial Statements
The financial transactions of the Town are reported in individual funds in the fund financial
statements. Each fund is accounted for by providing a separate set of self-balancing accounts
that comprises its assets, liabilities, reserves, fund equity, revenues and
expenditures/expenses. Funds are organized into three major categories: governmental,
proprietary, and fiduciary. An emphasis is placed on major funds within the governmental
and proprietary categories. A fund is considered major if it is the primary operating fund of
the Town or meets the following criteria:
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual
governmental fund or enterprise fund are at least 10 percent of the corresponding
total for all funds of that category or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual
governmental fund or enterprise fund are at least 5 percent of the corresponding
total for all governmental and enterprise funds combined.
The following fund types are used by the Town:
A. Governmental Funds
The focus of the governmental funds' measurement (in the fund statements) is upon
determination of financial position and changes in financial position (sources, uses, and
balances of financial resources)rather than upon net income.
I
23
i�
l
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2015
1
NOTE A Summary of Significant Accounting Policies (Continued)
3. Basic Financial Statements—Fund Financial Statements,(Continued)
A. Governmental Funds (Continued)
The following is a description of the governmental fiends of the Town:
1. General Fund—Town-wide 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.
2. General Fund — Part-Town is used to record revenues and expenditures related to
services provided to residents living outside the Village of Wappingers Falls, such as
police protection, planning and zoning services. The General Fund — Part-Town is
considered a major fund and is presented separately.
3. Highway Fund is used to record the revenues and expenditures related to the
maintenance of Town roadways. The Highway Fund is considered a major fund and
is presented separately.
4. Water Fund is used to record the revenues and expenditures related to the delivery of
water to the Town's customers. The Water Fund is considered a major fund and is
presented separately.
5. Sewer Fund is used to record the revenues and expenditures related to the delivery of
sewer services to the Town's customers. The Sewer Fund is considered a major fund
and is presented separately.
6. 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 fiend 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.
7. Non-Major Funds include those that are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditures for specified purposes.
These include the Lighting and Miscellaneous (Ambulance) Funds.
B. Fiduciary Funds
Fiduciary Funds are used to report assets held in a trustee or agency capacity for others
s. The reporting focus is on net
Town programs. g
and therefore are not available to supportp �' p
position and changes in net position and are reported using accounting principles similar
to proprietary funds.
24
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE A- Summary of Significant Accounting Policies (Continued)
3. Basic Financial Statements—Fund Financial Statements (Continued)
i B. Fiduciary Funds (Continued)
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 Accounting
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.
J
5. Financial Statement Amounts
A. Cash and Cash Equivalents
Cash and cash equivalents includes amounts in demand and time deposits. 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
i subdivisions. Deposits not covered by Federal Deposit Insurance, are collateralized by
the banking institutions with investments governed under state statutes.
25
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2015
NOTE A- Summary of Significant Accounting Policies (Continued)
5. Financial Statement Amounts (Continued)
A. Cash and Cash Equivalents (Continued)
The cash and cash equivalents of the Town at December 31, 2015, are as follows:_____
CAPITAL NON-
GENERAL HIGHWAY WATER SEWER PROJECTS MAJOR
FUNDS FUND FUND FUND FUND FUNDS TOTAL
Non-Interest
Bearing Accounts $ 850 $ - $ $ - $ - $ - $ 850
Interest Bearing
Accounts 4,894,669 1,194,032 1,637,211 1,544,010 4,356,756 97,286 13,723,964
TOTALS $ 4,895,519 $ 1,194,032 $1,637,211 $1,544,010 $ 4,356,756 $ 97,286 $13,724,814
Custodial credit risk is the risk that in the event of a bank failure, the Town's deposits
may not be returned to it. While the Town does not have a specific policy for custodial
credit risk, New York State statues govern the Town's investment policies, as discussed
previously in these Notes. Governmental Accounting Standards Board Statement No. 40
Deposit and Investment Risk Disclosure directs that deposits be disclosed as exposed to
custodial credit risk if they are not covered by depository insurance, or collateralized by
securities held by the Town or its agent in the Town's name. The Town's cash balances
were fully collateralized with securities held by the Town's depository institution's agent
and not subject to custodial credit risk.
B. Inventories
Inventories consist of significant expendable supplies,primarily sand and road salt, and
are carried at cost.
C. Catiital Assets
Capital assets purchased or acquired with an original cost of$500 or more are reported at
historical cost or estimated historical cost. Contributed assets are reported at fair market
value as of the date received. Additions, improvements and other capital outlays that
significantly extend the useful life of an asset are capitalized. Other costs incurred for
repairs and maintenance are expensed as incurred.
Depreciation on all assets is provided on the straight-line basis over the following
estimated useful lives:
Buildings 15-40 years
Infrastructure—Water& Sewer 40 years
Infrastructure—Roads 15 years
Machinery and equipment 5-15 years
Improvements 10-30 years
26
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31.2015
NOTE A- Summary of Significant Accounting Policies (Continued)
5. Financial Statement Amounts (Continued)
C. Capital Assets (Continued)
GASB Statement No. 34 requires the Town to report and depreciate new infrastructure
assets effective with the beginning of 2003. 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. The retroactive reporting of
infrastructure is subject to an extended implementation period and is first effective for
fiscal years ending in 2007. The Town implemented the general provisions of GASB
Statement No. 34 in 2003 but had not implemented the retroactive reporting of
infrastructure assets by the end of 2007 as required. However, in 2014 and 2015, the
Town implemented the retroactive infrastructure provisions and provided a basis for cost
and related depreciation for roads,water infrastructure, and sewer infrastructure.
D. Fund Balance Classifications
Fund balance is presented in five different classifications which focus on the constraints
imposed on resources in governmental funds, rather than on availability for
appropriation. The classifications include: non-spendable, restricted, committed,
assigned, and unassigned.
Non-spendable consists of assets that are inherently non-spendable in the current period
either because of their form or because they must be maintained intact, including prepaid
items, inventories, long-term portions of loans receivable, financial assets held for resale,
and principal of endowments.
Restricted consists of amounts that are subject to externally enforceable legal purpose
restrictions imposed by creditors, grantors, contributors, or laws and regulations of other
governments; or through constitutional provisions or enabling legislation.
Committed consists 'of amounts that are subject to a purpose constraint imposed by a
formal action of the govermnent's highest level of decision-making authority before the
end of the fiscal year, and that require the same level of formal action to remove the
constraint. The Board is the decision-making authority that can, prior to the end of the
fiscal year, commit fund balance.
Assigned consists of amounts that are subject to a purpose constraint that represents an
intended use established by the government's highest level of decision-making authority,
or by their designated body or official. The purpose of the assignment must be narrower
than the purpose of the general fund, and in funds other than the general fund, assigned
fund balance represents the residual amount of fund balance.
Unassigned represents the residual classification for the government's general fund, and
could report a surplus or deficit. In funds other than the general fund, the unassigned
classification should be used only to report a deficit balance resulting from overspending
for specific purposes for which amounts had been restricted, committed, or assigned.
27
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
G DECEMBER 31,2015
I
I
NOTE A Summary of Significant Accounting Policies (Continued)
5. Financial Statement Amounts (Continued)
D. Fund Balance Classifications (Continued)
When resources are available from multiple classifications, the Town spends funds in the
following order: restricted, committed, assigned,unassigned.
The following details the allocations and amounts of fund balance following the
implementation of GASB 54 as of December 31, 2015:
The Town has $963,182 of unassigned but restricted funds for recreation, which includes
funds commonly referred to as Parkland Trust deposits, as well as funds set-aside for the
Carnwath property. These amounts are accounted for in the Trust and Agency fund and
transferred to the General Fund when released from restriction. For government-wide
financial presentation purposes, these amounts are completely reclassified to the General
p
Fund and restricted.
E. Deficit Fund Balances
The capital projects fund had a deficit fund balance at December 31, 2015. The deficit
will be eliminated as short term debt is converted to permanent financing.
F.Accumulated Compensated Absences
It is the Town's policy to permit employees of the Highway Department to accumulate a
limited amount of earned but unused vacation and sick leave, which will be paid to
employees upon separation from the Town's service. Other Town employees 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 isprobable;
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, 2015, in
the amount of$317,854. The non-current portion (the amount estimated to be used in
subsequent fiscal years) for governmental funds is maintained separately and represents a
reconciling item between the fund and government-wide presentations. It is anticipat d
that none of these liabilities will be liquidated with expendable available finance
' resources.
i
i
28
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE A- Summary of Significant Accounting Policies (Continued)
5. Financial Statement Amounts (Continued)
G.Interfund Activity
Interfund activity is reported as 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 funds are netted as part of the reconciliation to the
government-wide financial statements.
H.Budgets
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—Town Wide, General
Fund—Part Town, Highway Fund, Water Fund, and Sewer Fund. 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.
As of December 31, 2015, material over-expenditures occurred in the United Wappinger
Sewer District totaling over $64,000 in excess of budgetary appropriations. However,
sufficient revenues were recorded to cover these expenditures.
I. Property Taxes
The Town submits an approved budget to the Dutchess County Commissioner of Finance
by December 5th of the previous year. The County then establishes the warrant for the
year, which is due and payable on or about January 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.
J. Long-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.
29
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2015
NOTE A Summary of Significant Accounting Policies (Continued)
5. Financial Statement Amounts (Continued)
K.Risk Mana-aement
The Town of Wappinger assumes the liability for most risk including,but not limited to,
property damage and personal injury liability. Such risks are covered by the purchase of
commercial insurance. Judgments and claims are recorded when it is probable that an
asset has been impaired or a liability has been incurred and the amount of loss can be
reasonably estimated. Workers compensation coverage is provided through a
retrospective policy, wherein premiums are recorded based on the ultimate cost of the
experience to date of workers in similar occupations. The Town does not estimate
claims, which may have occurred but are not reported in areas where the Town is not
insured.
L.Use of Estimates
The preparation of basic financial statements, in conformity. with accounting principles
generally accepted in the United States of America, requires management to make
affect the amounts reported in the basic financial
estimates and assumptions that of p
statements and the accompanying notes. Actual results could differ from those estimates.
M. Subsequent Events
Management has evaluated subsequent events for disclosure and/or recognition in the
financial statements through the date that the financial statements were available to be
issued, which date is August 19, 2016.
Subsequent events noted during management's evaluation are detailed in Note L.
NOTE B Interfund Receivables and Payables and Transfers
The following is a summary of amounts due from nd due to other
bee been ass, and spart n and
the
December 31 2015. These interfund balances
out, as of ,
aggregation of fund balances.
Such balances arise through the use of a pooled cash disbursement
projects. There were no interfund transfers to
account and the temporary funding of capital
pJ
5.
report fY 31or the year ended December ,
201
p
AMOUNT AMOUNT
FUND RECEIVABLE PAYABLE
General-Town-Wide $ 4,386 $ 57,669
General-Part-Town - 10,719
204,403
Highway 6 413
Water 36 '
Sewer 58,062 23,130
Capital Projects 239,850 -
TOTALS $ 302,334 $ 302,334
30
t
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE C—Capital Assets -
The following is a summary of changes and adjustments in capital assets, for the year ended
December 31, 2015:
BALANCE BALANCE
JANUARY 1, DECENIBER 31,
2015 ADDITIONS (DISPOSALS) . 2015
Land $ 8,162,217 $ - $ - $ 8,162,217
Buildings 8,026,353 317,311 - 8,343,664
Improvements Other Than Buildings 1,365,266 381,045 - 1,746,311
j Roads 9,667,275 476,275 (320,297) 9,823,253
Infrastructure 152,164,000 339,851 - 152,503,851
Machinery and Equipment 6,471,662 130,582 (334,712) 6,267,532
Construction in Progress 5,725,476 3,067,534 (932,048) 7,860,962
Total 191,582,249 4,712,598 (1,587,057) 194,707,790
Less accumulated depreciation
Buildings 3,557,167 241,435 - 3,798,602
Improvements Other Than Buildings 723,694 53,427 - 777,121
Roads 7,054,600 370,579 (311,430) 7,113,749
Infiastructure 111,094,679 1,511,850 - 112,606,529
Machinery and Equipment 4,989,367 385,447 (318,641) 5,056,173
Total accumulated depreciation 127,419,507 2,562,738 (630,071) 129,352,174
Governmental activities capital
assets,net $ 64,162,742 $ 2,149,860 $ (956,986) $ 65,355,616
*Depreciation was charged to governmental activities as follows:
General government support $ 194,123
Public safety 48,333
Id Transportation 683,410
Culture and recreation 77,131
Home and community services 1,559,741
Total depreciation expense $ 2,562,738
If NOTE D—Pension Plans
1. Plan Description
The Town of Wappinger participates in the New York State and Local Employees'
Retirement System (ERS), the New York State and the Public Employees' Group Life
Insurance Plan (Systems). ERS is a cost-sharing multiple-employer retirement system. 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).
d31
d
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE D—Pension Plans (Continued)
1. Plan Description (Continued)
As set forth in the NYSRSSL, the Comptroller of the State of New York (Comptroller)
serves as sole trustee and administrative head of the Systems. The Comptroller shall adopt
and may amend rules and regulations for the administration and transaction of the business of
the Systems and for the custody and control of their funds. 'The Systems issue a publicly
available financial report that includes financial statements and required supplementary
information. That report may be obtained by writing to the New York State and Local
Retirement Systems, 110 State Street, Albany,New York 12244.
2. Funding Policy
The Systems are noncontributory except for employees who joined the New York State and
0
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 of
participating employers expressed as proportions of payroll of members, which shall be used
in computing the contributions required to be made by employers to the pension
accumulation fund.
The Town of Wappinger is required to contribute to the Systems at an actuarially determined
rate. The required contributions for the current year and two preceding years were:
2015 2014 2013
$493,940 $496,222 $508,861
The Town's contributions made to the Systems were equal to or in excess of 100 percent of
the contributions required for each year.
3. Pension Liabilities,Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At December 31, 2015, the Town reported a liability of$301,178 for its proportionate share
of the net pension liability. This amount is recorded as a long-term liability due to the NYS
Retirement System. The net pension liability was measured as of March 31, 2015, and the
total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The Town's proportion of the net pension liability was
based on a projection of the Town's long-term share of contributions to the pension plan
relative to the projected contributions of all participating members, actuarially determined.
At March 31, 2015, the Town's proportion was .0089152 percent of the Employers'
Retirement System liability, which is the initial determination. Therefore, this is the initial
year for implementation of GASB 68. See Note M.
For the year ended December 31, 2015, the Town recognized pension expense of$284,742.
At December 31, 2015, the Town reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
32
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015'
NOTE D—Pension Plans (Continued)
3. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions (Continued)
Deferred Outflows Deferred Inflows
of Resources of Resources -
- Differences between expected and actual experience $ 9,641 $ -
Changes of assumptions -
Net difference between projected and actual investment 52,311
earnings on pension plan investments -
Changes in proportion and differences between employer 48,694
contributions and proportionate share of contributions
Employer contributions subsequent to the measurement date 505,690 -
Total $ 616,336 $ -
$505,690 reported as deferred outflows of resources related to pensions resulting from the
Town's contributions subsequent to the measurement date will be recognized as a reduction
of the net pension liability in the year ended December 31, 2016. Other amounts reported as
deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense as follows:
Year ended December 31:
2016 $27,661
2017 $27,661
l 2018 $27,661
2019 $27,661
Actuarial Assumptions
The total pension liability at March 31, 2015, was determined by using an actuarial valuation
as of April 1, 2014, with update procedures used to roll forward the total pension liability to
March 31, 2015. The actuarial valuation used the following actuarial assumptions.
Significant actuarial assumptions used in the April 1, 2014,valuation were as follows:
Inflation 2.7%
Salary increases -ERS 4.9%
Interest rate 7.5%
'I Decrement tables April 1,2005-March 31,
2010 System's experience
33
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE D—Pension Plans (Continued)
3. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions (Continued)
Actuarial Assumptions (Continued)
Annuitant mortality rates are based on April 1, 2005 —March 31, 2010 System's experience
with adjustments for mortality improvements based on MP-2014.
The actuarial assumptions used in the April 1, 2014 valuation are based on the results of an
actuarial experience study for the period April 1, 2005—March 31, 2010.
i
The long term expected rate of return on pension plan investments was determined using a
building block method in which best estimate ranges of expected future real rates of return
(expected returns net of investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long term expected rate of return by
weighting the expected future real rates of return of the target asset allocation percentage and
by adding expected inflation.
Best estimates of arithmetic real rates of return for each major asset class included in the
target asset allocation as of March 31, 2015 are summarized below:
Long-Term
Expected Real
Asset Class Rate of Return
Domestic equity 7%
International equity 8.55
Private equity 11.00
Real estate 8.25
Absolute return strategies 6.75
Opportunistic portfolio 8.60
Real assets 8.65
Bonds and mortgages 4.00
r
Cash 2.25
j Inflation-indexed bonds 4.00
i
34
M'
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2015'
NOTE D—Pension Plans (Continued)
3. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions (Continued)
Discount Rate
- The discount rate used to calculate the total pension liability was 7.5%. The projection of
cash flows used to determine the discount rate assumes that contributions from plan members
will be made at the current contribution rates and that contributions from employers will be
` made at statutorily required rates, actuarially. Based upon these assumptions, the System's
fiduciary net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore the long term expected rate of return on
pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability.
Sensitivi1y of the Proportionate Share of the Net Pension Liabilfty to the Discount Rate
Assumption
The following presents the Town's proportionate share of the net pension liability calculated
using the discount rate of 7.5 percent, as well as what the Town's proportionate share of the
net pension liability would be if it were calculated using a discount rate that is 1-percentage-
point lower(6.5 percent) or 1-percentage-point higher(8.5 percent)than the current rate:
1% Current 1%
Decrease Assumption Incre as e
(6.5%) - (7.5%) (8.5%)
Town's proportionate share
of the net ERS pension liability $2,007,477 $ 301,177 $(1,139,363)
Pension plan fiduciary net position
The components of the current-year net pension liability of all employers as of March 31,
2015, were as follows:
Dollars in Thousands
Employees'
Retirement
System
Employers'total pension liability $ 164,591,504
Plan net position (161,213,259)
Employers'net pension liability $ 3,378,245
Ratio of plan net position to the
employers'total pension liability 97.9%
35
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER--3-1,2-015
NOTE E–Other Post-Employment Benefits
1. Plan Description
The cost of post-einployment healthcare benefits, like the cost of pension benefits, generally
should be associated with the periods in which the cost occurs,rather.than in the future year
when it will be paid, which is the accrual accounting perspective. In adopting the
nt No. 45,Accounting and Financial Reporting by Employers
requirements of GASB Stateme
for Post-employment Benefits Other Than Pensions, the Town recognizes the cost of post-
employment healthcare in the year when the employee services are received, reports the
accumulated liability from prior years, and provides information useful in assessing potential
demands on the Town's future cash flows.
I
Recognition of the liability accumulated from prior years will be phased in over 3.0 years.
The Town calculated its annual required contribution (ARC) and related information using
the alternative measurement method permitted by GASB No. 45 for employers in plans with
fewer than 100 total plan members.
The Town provides continuation of medical insurance coverage to employees that retire
under the New York Retirement Systems at the same time they'end their service to the Town.
This plan is a single employer plan, established by authority of the Town Board and
administered by the Town. Currently, there are approximately 15 retirees or beneficiaries
receiving post-employment benefits. Based on the current employment policy, the retiree
and his or her beneficiaries receive coverage for the life of the retiree based on the retiree's
years of service at retirement. A copy of the report on these benefits can be requested at
Town Hall. A summary of benefits is as follows:
%Paid by Town
Under 65 Over 65
Years of Service
10-14 Years 35% 35%
15-19 Years 50% 50%
20-24 Years 60% 60%
25 or More Years 70% 70%
The Town provides funding on
pay-as-you-go
premiums. Currently, N General opal Laws do f permitfunding of the
OPEB obligation,therefore there are no plan assets.
3E
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE E—Other Post-Employment Benefits (Continued)
2. Annual Other Postemployment Benefit Cost
The Town's change in net OPEB obligation amounted to $456,883 for the year ended
December 31, 2015. The Annual Required Contribution (ARC) is an amount actuarially
determined in accordance with the parameters of GASB Statement 45 less the amount that--
the
hat-the Town paid in the current year for retirees. The ARC represents a level of funding that, if
paid on an ongoing basis, is projected to cover normal costs plus a past service cost each year
and amortize any unfunded actuarial liabilities over a period of 30 years.
Total Actuarial Accrued Liability $ 6,114,097
Past Service Costs $ 236,314
Normal Costs 337,696
Annual Required Contribution(ARC) $ 574,010
Net OPEB Obligation-beginning of the year $ 3,151,793
Annual Required Contribution(ARC) 574,010
Interest on Net OPEB Obligation 78,795
Adjustment to Annual Required Contribution (118,271)
Annual OPEB cost 534,534
Age Adjusted Contributions Made* (77,651)
Increase in Net OPEB Obligation 456,883
Net OPEB Obligation- end of the year $ 3,608,676
Percent of annual OPEB cost contributed 14.5%
*This contribution is the pay-as-you-go amount, as an actual plan
has not been established, see Funding Policy.
I
%ofAnnual Net OPEB
Year Annual OPEB Cost Obligation
Ended OPEB Cost Contributed at End of Year
12/31/2015 $ 534,534 14.50% $ 3,608,676
12/31/2014 523,473 13.70% 3,151,793
12/31/2013 512,858 12.70% 2,700,042
" 37
i
L
I
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE E-Other Post-Employment Benefits (Continued)
2. Annual Other Postemployment Benefit Cost (Continued)
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples
include assumptions about future employment; mortality, and the healthcare cost trend.
Amounts determined regarding the funding status of the plan and the annual expectation and
new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information following the notes to the financial statements, presents
multi-year trend information about whether the actuarial value for plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
3. Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the
plan as understood by the employer and the plan members) and include the types of benefits
provided at the time of each valuation and the historical pattern of sharing benefit costs
between the employer and plan members to that point.. The actuarial methods and
assumptions used include techniques that are designed to reduce the effects of short-term
volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations. In the December 31, 2013,. actuarial valuation, the
liabilities were computed using the entry age actuarial cost method and level percentage of
payroll amortization. The actuarial assumptions utilized a 2.5%baseline discount rate.
The valuation assumes the following rates of increase in health care costs:
Fiscal Prescription
Year Medical Drug Dental Vision
Year 1 9.00% 9.00% 4.00% 3.00%
Year 2 8.00% 8.00% 3.50% 3.00%
Year 3 7.00% 7.00% 3.00% 3.00%
Year 4 6.00% 6.00% 3.00% 3.00%
Year 5 5.80% 5.80% 3.00% 3.00%
Year 6 5.60% 5.60% 3.00% 3.00%
Year 7 5.60% 5.60% 3.00% 3.00%
Year 8 5.50% 5.50% 3.00% 3.00%
Year 9 5.50% 5.50% 3.00% 3.00%
Year 10+ 4.70% 4.70% 3.00% 3.00%
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE F-Bond Anticivation Notes Payable
Bond anticipation notes can be used for any purpose for which bonds are authorized, and are
generally accounted for in the capital projects fund, since maturities cannot, exceed one year.
Local finance law allows the notes to be renewed, up to five years for capital purposes and up to
the period of probable usefulness for assessable improvements, provided that stipulated annual
reductions of principal are made.
The Town authorized the issuance of $5,436,000 in bond anticipation notes dated March 25,
2015, and maturing on March 25, 2016, at 1% interest. The notes were issued for the purpose of
renewing outstanding notes for various improvements, construction projects, and equipment
- purchases.
The Town also authorized the issuance of$3,788,610 in bond anticipation notes dated September
22, 2015, and maturing on March 25, 2016, at 0.57% interest. The notes were issued for the
purpose of paying for the cost of the Town hall roof reconstruction, water and sewer
improvements, and road reconstruction.
The bond anticipation notes outstanding as of December 31, 2015, are as follows:
AMOUNT
OUTSTANDING
ORIGINAL ORIGINAL AT
ISSUE MATURITY INTEREST AMOUNT DECEMBER 31,
PURPOSE DATE DATE RATE OFISSUE 2015
United Wappinger Water District Improvements 09/26/13 03/25/16 1.00% $ 500,000 $ 495,000
United Wappinger Sewer District Improvements 0926/13 03/25/16 1.00% 580,000 575,000
Wildwood Dr and Granger P1 Improvements 0926/13 0325/16 1.00% 500,000 495,000
Meadowood&Route 9 Loop-Filfration Systems(1) 06/18/14 0325/16 1.00% 700,000 700,000
Resurfacing Various Town Roads(1) 06/18/14 0325/16 1.00% 520,000 520,000
Highway Equipment 06/18/14 0325/16 1.00% 230,000 230,000
Meadowood&Route 9 Loop-Filtration Systems(2) 11/19/14 0325/16 1.00% 2,421,000 2,421,000
Water Meter Replacement 0922/15 03/25/16 0.57% 1,793,000 1,793,000
Tri-Municipal Sewer Commission 0922/15 0325/16 0.57% 945,000 945,000
Resurfacing Various Town Roads(2) 09/22/15 0325/16 0.57% 650,000 650,000
Town Hall RoofReplacement 0922/15 0325/16 0.57% 400,610 400,610
TOTAL BOND ANTICIPATION NOTES $ 9,239,610 $ 9,224,610
Changes In bond anticipation notes payable as of December 31, 2015, are as follows:
BALANCE BALANCE
JANUARY I, NEW DECEMBER 31,
.� PURPOSE 2015 ISSUES PAYDOWNS 2015
United Wappinger Water District Improvements $ 500,000 $ - $ (5,000) $ 495,000
United Wappinger Sewer District Improvements 580,000 - (5,000) 575,000
Wildwood Dr and Granger P1 Improvements 500,000 - (5,000) 495,000
a Meadowood&Route 9 Loop-Filtration Systems(1) 700,000 - - 700,000
Resurfacing Various Town Roads(1) 520,000 - - 520,000
Highway Equipment 230,000 - - 230,000
Meadowood&Route 9 Loop-Filtration Systems(2) 2,421,000 - - 2,421,000
Water Meter Replacement 1,793,000 - 1,793,000
Tri-Municipal Sewer Commission - 945,000 - 945,000
Resurfacing Various Town Roads(2) - 650,000 - 650,000
Town Hall RoofReplacement 400,610 400,610
TOTALS $ 5,451,000 $3,788,610 $ (15,000) $ 9,224,610
39
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE G-Long-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, 2015, are as
follows:
AMOUNT
OUTSTANDING
ORIGINAL FINAL ORIGINAL AT
ISSUE MATURITY INTEREST AMOUNT DECEMBER31,
PURPOSE DATE DATE RATE OFISSUE 2015
Sewer-Tri-Municipal 03/14/02 04/15/21 1.21%-4.98% $ 9,836,556 S 3,400,000
Sewer-Tri-Municipal 11/26/02 05/15/15 3.18%-5.99% 8,519,786 -
Sewer-Tri-Municipal 06/01/95 11/15/15 3.70%-5.55% 2,610,054 -
Water-Fleetwood 07/30/98 10/15/18 3.70%-5.15% 510,000 100,000
Sewer-Home&Community Services 06/02/11 04/01/21 2.75%-3.50% 316,000 205,000
Greystone Property Purchase 06/02/11 10/01/20 2.00%-3.50% 2,085,000 730,000
Emergency Services Building 06/01/95 11/15/15 3.70%-5.55% 1,275,000 -
25,152,396 4,435,000
Highway-Transportation 1,184,640 1,076,175
General-General Government Support
50,000 45,422
General-Culture&Recreation 163,360 148,403
03/27/14 03/15/24 1.50-2.75% 1,398,000 1,270,000
General-General Government Support 662,400 484,568
Water/Sewer-Home&Community Services 8,674,300 6,404,628
Highway-Transportation 2,243,300 1,660,804
08/01/07 08/01/27 4.00%-5.00% 11,580,000 8,550,000
'! General-Culture&Recreation 1,070,000 658,852
Highway-Transportation 1,074,000 661,167
General-Home&Community Services 1,218,000 749,981
04/02/09 04/01/22 2.00%-5.00% 3,362,000 2,070,000
i, Water-Home&Community Services 360,000 293,750
Sewer-Home&Community Services 576,000 470,000
General-Culture&Recreation/Lighting 504,000 411,250
03/05/13 03/01/23 2.00%-2.25% 1,440,000 1,175,000
TOTALS $ 42,932,396 $ 17,500,000
4(
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE G-Long-Term Liabilities (Continued)
2. Changes
The changes in the Town's indebtedness during the year ended December 31, 2015, are
summarized as follows:
BALANCE BALANCE AMOUNTS
JANUARYI, DECEMBER 31, DUE WITHIN
2015 INCREASE (DECREASE) 2015 ONE YEAR
Judgement&Claims
Note H.1. $ 80,000 $ - $ - $ 80,000 $ -
Compensated Absences,
Note A.S.E. 299,793 18,061 - 317,854 -
Landfill Remediation
Note I 179,528 - (23,783) 155,745 7,258
Serial Bonds
Note G.1. 19,548,000 - (2,048,000) 17,500,000 1,700,000
Other Postemployment Benefits
Note E 3,151,793 456,883 - 3,608,676 -
Net Employee Retirement System
Note D 402,866 - (101,688) 301,178 -
TOTALS $23,661,980 $ 474,944 $ (2,173,471) $ 21,963,453 $ 1,707,258
3. Debt Service Requirements
The annual requirements to amortize bonded debt, as of December 31, 2015, are as follows:
YEAR ENDING
DECEMBER 31, PRINCIPAL INTEREST TOTAL
2016 $ 1,700,000 $ 679,936 $ 2,379,936
2017 1,770,000 610,957 21380,957
2018 1,830,000 535,835 2,365,835
2019 1,855,000 461,613 2,316,613
2020 1,920,000 386,335 2,306,335
2021-2025 5,445,000 1,121,114 6,566,114
2026-2030 2,980,000 323,002 3,303,002
TOTALS $ 17,500,000 $ 4,118,792 $21,618,792
A
4
41
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
i
NOTE H Commitments and Contingent Liabilities
1. Lawsuits
The Town is a defendant in various lawsuits and tax certiorari cases. The outcome of the
majority of hese cases and lawsuits, as determined by the town attorney, should not result in
unfavorable settlements
The Town has recorded an estimated liability amounting to
material unf tax certiorari
�
$80,000 as judgment and claims, representing possible`future settlements
on
cases.
2. Tri-Municipal Sewer Commission
l The Town is a customer of the Tri-Municipal Sewer Commission which operates the Tri-
i
Municipal Sewer Treatment Plant. The plant is managed by the Tri-Municipal Sewer
Commission, which is 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 he Co o tssi ds for g plant improvement However,as determin do by has
the
committed to share in capital
Commission.
f the Commission's residual fund balance is allocated to the Town and is returnable
tc
Part o Towns residual fund ba
j the Town at the discretion of the Commission's board. The
receivable was $322,755 at December 31, 2015.
3. United Wap pin er Water District
with In 2012, he Town entered into an agreementThe first e phaCitse of he project iof New York s for the ex ensir the a
of a water supply and distribution system. p
of the water main from the United Wappinger Water District to the NYC Sha$ 6 site o
River Road. This phase was completed and placed in service during 2014. The second phas
of the project is for a water main extension of the NYC DEP parcel to the Chelsea Haml(
area. This phase is expected to be completed in 2016. The City has agreed to pay for a
eligible costs not to exceed $11,000,000, and the Town is responsible for all costs ovs
as
$11,000,000. The construction costs In
under leaproject
�oxinately totaled60$0 01�gallons
December 31, 2015. The Town is expected to supply pp
water per day to NYC DEP for approximately$180,000.
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015'
NOTE H- Commitments and Contingent Liabilities (Continued)
4. Authorized Debt
As of December 31, 2015,the Town has authorized,but not issued,the following new debt:
Authorization Authorized Un-issued ,'
PURPOSE Date Amount Amount
Refunding Bonds 02/01/99 $ 4,700,000 $ 1,430,000
Central Wappinger Water 02/12/01 8,590,000 100,000
Road Improvement 05/27/03 3,300,000 1,220,000
Computer Hardware and Software 03/12/03 550,000 200,000
United Wappinger Water District Improvements 04/22/13 4,040,000 419,000
Maintenance Equipment 12/14/15 505,000 505,000
TOTALS $21,685,000 $3,874,000
NOTE I—Municipal 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 $57,499.
The Town has recorded the long term liability of$53,076 and short term liability of$4,423 in
the Statement of Net Position. The costs of both closure and post closure monitoring are
ordinarily recognized over the expected useful life of the landfill. However, since the landfill
has stopped accepting refuse and is now closed, any additional costs over the estimate is
being recognized as incurred. The Town incurred $4,423 in monitoring costs during 2015.
The future costs may be higher due to inflation, changes in technology or subsequent changes
in regulations.
2. Poughkeepsie-Watipingers-LaGrange Joint Landfill
The Town has shared in the monitoring costs of a closed landfill, the Poughkeepsie-
Wappinger-LaGrange Joint Landfill. This joint activity includes the City and Town of
Poughkeepsie, New York, the Village of Wappingers Falls, New York, the Town of
LaGrange, New York and the Town of Wappinger, New York. All costs associated with
monitoring are recognized as incurred. The Town's share of monitoring costs, for the year
ended December 31, 2015, amounted to $3,331.
The following is a summary of unaudited financial information at December 31, 2015, which
INis included in the separate financial statements available from the Joint Landfill Board of
Governors, Town of Poughkeepsie, One Overocker Road,Poughkeepsie,New York, 12603:
43
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER-3-1,2-015
NOTE I Municipal Landfills (Continued)
2. Poughkeepsie Wappingers LaGranze Joint Landfill(Continues
i'
Total Assets $ 40,176
Total Liabilities $ -
Total Venture Equity $ 40,176
Total Revenues $ 21,361
Total Expenditures $ 15,236
(j During 2002, violations were documented at the landfill and in 2003 an Order of Consent
I! 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
current regulations by December 31, 2005, and perform post closure
the landfill
under �
mum of thirty years thereafter. The estimated cost of final
care and monitoring for a mini
closure is $10,000,000. All costs are borne proportionately by each municipality: hn
0 Town issued $1,425,368
or 1
417 2
80. The T
Town of Wappinger s share is 14.1728/o $ ,
d anticipation notes to finance its share. The notes were re-financed in 2009 into a
bon 838 747
P 5 is $
31
201 ,
serial bond and the amount outstanding as of December ,
Remaining post closure and monitoring costs, which commenced in 2007 and continue
for 30 years, are estimated to amount to $693,200 as of December 31, 2015, with the
Town's share being$98,246.
NOTE J-Leases
r office equipment
and communication
various leases for
committed
under van .
The Town is co capital
equipment. For accounting purposes, these leases can be considered either operating or c p
leases. Operating lease expenditures amounted to $40,917, and there were no capital lease
expenditures for the year ended December 31, 2015.
At December 31, 2015, the approximate annual lease commitments, subject to appropriation of
funds,were as follows: VOPERATINGYEAR ENDING
DECEMBER 31, LEASES
2016 $ 40,917
2017 31,044
2018 11,848
2019 10,515
2020 3,603
Total rnun mum lease payments $ 97,927
4,
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31,2015
NOTE K—Rental Income
The Town has agreements with various organizations for the rental of the Town's emergency
services building and for the rental of land and antenna space. Rental income totaled $229,426
for the year ended December 31, 2015. The minimum future rental income for each of the years
ending December 31,is as follows:
mom PEAR ENDING RENTAL
DECEMBER 31, INCOME
2016 $ 63,733
2017 65,645
2018 39,571
2019 31,410
ffs 2020 5,261
Total minimum rental income $205,620
NOTE L—Subse cent Events
The Town authorized the issuance of $3,438,000 in bond anticipation notes dated March 24,
2016, and maturing on March 24, 2017, at 0.95% interest. The notes were issued for the purpose
of renewing, in part, outstanding notes for various improvements and construction projects, as
well as new money to pay the cost of acquisition of equipment for maintenance purposes.
On April 26, 2016, the Town issued public improvement refunding serial bonds totaling
$8,520,000 at 1.00-5.00% interest and maturing on April 1, 2029. The bonds will refund all or a
portion of the all or a portion of$8,095,000 of the outstanding $11,580,000 Public Improvement
(Serial) Bonds, 2007 and $1,815,000 of the outstanding $2,070,000 Public Improvement (Serial)
Bonds, 2009.
On March 24, 2016, the Town issued public improvement serial bonds totaling $5,840,610 at
2.25-3.00% interest and maturing on March 15, 2036. The bonds, along with $71,000 in
available funds, will be used to redeem $5,911,610 outstanding bond anticipation notes for
certain projects.
45
TOWN OF WAPPINGER,NEW YORK
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 2015
NOTE M—Implementation of GASB 68
In June 2012, GASB issued Statement 68 Accounting and Financial Reporting for Pensions, an
amendment of GASB Statement 2. This Statement requires.'the recording of the Town's
proportional share of the collective net pension liability of the New York State & Local
Retirement System. The Town implemented this standard for the year ending December 31,
2015, the first year that proportional share information was available. Therefore,no adjustments
have been made to the December 31, 2014, financial statements. The substantive effects are
summarized in the table below. Change Due
to GASB 68
Account Description Implementation
Net Positio - January 1 - Decrease $ (30,395)
n
Net Employee Retirement System Liability- Increase $ 301,178
Employee Retirement Benefits Expense - Increase $ 219,130
JDeferred Outflows- Employee Retirement System- Increase $ 616,336
Prepaid Expenses - Decrease $ (126,423)
NOTE N—Prior Period Adiustment
In 2014 and 2015, the Town developed an infrastructure listing of their roads, water
infrastructure, and sewer infrastructure in accordance with there retroactive
reporting
o asset,
dad adjustment was properly under GASB Statement No. 34. A prior Pero J 'er 31 2014. AY
and
net position at December ,
asset balances, related accumulated depreciation, p
2015 which increased the governmen
December 31 ,
additional
adjustment was recorded as of Dec ,
� 1 563.
depreciation,ciation b $6 99 ,
net of � Y
capital assets p
wide net position and cape ,
NOTE O—New Reporting Standards
In June 2015, GASB issued Statement 75, Accounting and Financial Reporting fo
Postemployment Benefits Other Than Pensions. When implemented, this Statement will requh
the recording of the Town's net OPEB liability. The Town is r tation red of this standard
standard for the year ending December 31, 2018. The implemen
ffect on the Town's net position.
expected to have a substantive e
-74 and 76-82, of which only GASB Statement 82,Pensic
GASB has also issued Statements 69
Issues — an amendment of GASB Statements No. 67, No. 68, and No. 73, is expected to have
substantive effect on the Town.
"7
REQUIRED SUPPLEMENTAL INFORMATION
JI
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
F BUDGETARY COMPARISON SCHEDULE
DECEMBER 31,2015
GENERAL FUND-TOWN-WIDE
r VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
F REVENUES
Real property taxes $ 2,668,229 $ 2,668,229 $ 2,668,229 $ -
Real property tax items 70,000 70,000 84,929 14,929 -- -
Non property tax items - - - -
Departmental income 149,475 149,475 129,350 (20,125)
Use of money and property 173,100 173,100 216,105 43,005
Licenses and permits 7,100 7,100 5,144 (1,956)
Fines and forfeitures 250,900 250,900 349,567 98,667
Sale of property and compensation for loss - 41,724 47,637 5,913
Miscellaneous local sources - - 2,726 2,726
State aid 710,900 710,900 766,168 55,268
Total revenues 4,029,704 4,071,428 4,269,855 198,427
Appropriation of prior year's fund balance - - - -
ORTotal revenues and appropriation of
prior year's fund balance 4,029,704 4,071,428 4,269,855 198,427
EXPENDITURES AND ENCUMBRANCES
General government support 1,778,172 1,773,641 1,664,084 109,557
Public safety 35,066 37,566 35,097 2,469
Health 3,500 3,500 4,838 (1,338)
Transportation 248,067 249,998 171,567 78,431
Economic assistance&opportunity 600 600 650 (50)
Culture and recreation 530,823 572,647 509,437 63,210
Home and community service 230,000 230,000 219,686 10,314
Employee benefits 782,388 782,388 622,478 159,910
Debt service 421,088 421,088 394,087 :27,001
Total expenditures and encumbrances 4,029,704 4,071,428 3,621,924 449,504
Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under)
expenditures and encumbrances - - 647,931 647,931
Other financing sources(uses):
Operating transfers in - - - -
Operating transfers out - - - -
' Total other financing sources - - - -
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources
over(under)expenditures and encumbrances $ - $ - $ 647,931 $ 647,931
Explanation of differences between budgetary and GAAP basis
Excess of revenues over/(under)expenditures-budgetary basis $ 647,931
Expenditures do not include GASB 34 adjustments (203,873)
Excess of revenues over/(under) expenditures-GAAP basis $ 444,058
See independent auditors'report. 47
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2015
I -
GENERAL FUND-PART-TOWN
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
REVENUES
Real property taxes $ _ $ _ $ $
P Real property tax items
Non property tax items 970,959 970,959 1,108,670 137,711
Departmental income 114,000 114,000 148,484 34,484
Use of money and property 500 500 949 449
8,000 228,000 290,038
Licenses and permits
22 62,038
Fines and forfeitures
Sale of property and compensation for loss - - 3,400 3,400
Miscellaneous local sources - 5,038 5,038
State aid -
'I
Total revenues 1,313,459 1,313,459 1,556,579 243,120
i
Appropriation of prior year's fund balance - 106,000 - (106,000)
Total revenues and appropriation of
prior year's fund balance 1,313,459 1,419,459 1,556,579 137,120
EXPENDITURES AND ENCUMBRANCES
General government support 208,373 208,373 152,548 55,825
Public safety 425,621 531,621 425,258 106,363
Health 1
Transportation 36,000 36,000 37,063 ( ,063)
Economic assistance&opportunity 5,000 5,000 1,587 3,413
Culture and recreation 93,840 93,840 70,115 23,725
Home and community service 180,226 180,226 142,127 38,099
Employee benefits 242,173 242,173 226,946 15,227
Debt service
122,226 122,226 122,226
Total expenditures and encumbrances 1,313,459 1,419,459 1,177,870 241,589
Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under) 378,709
expenditures and encumbrances - - 378,709
Other financing sources(uses):
Operating transfers in
Operating transfers out
Total other financing sources - -
Excess.(deficiency)of revenues and appropriation
of prior year's fund balance and other sources 378,709
over(under)expenditures and encumbrances $ - $ - $ 378,709 $
r
See independent auditors'report.
EXHIBIT I
oftline TOWN OF WAPPINGER,NEW YORK
„ . BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2015
HIGHWAY FUND
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
REVENUES
Real property taxes $ 2,998,806 $2,998,806 $ 2,998,806 $ -
Real property tax items - - -- _
Non property tax items 425,041 425,041 425,041 -
a i _ -
Departmental income - -
Use of money and property 800 800 910 110
Licenses and permits - - 700 700
Fines and forfeitures - -
Sale of property and compensation for loss - - 81 81
Miscellaneous local sources - - 1,000 1,000
State aid 220,000 220,000 224,850 4,850
Total revenues 3,644,647 3,644,647 3,651,388 6,741
Appropriation of prior year's fund balance - 187,359 - (187,359)
Total revenues and appropriation of
prior year's fund balance 3,644,647 3,832,006 3,651,388 (180,618)
EXPENDITURES AND ENCUMBRANCES
189,900 136,500 137,387 (887)
General government support
Public safety - - -
Health - - -
Transportation 2,215,122 2,455,881 2,362,749 93,132
Economic assistance&opportunity - - -
Culture and recreation - - -
Home and cormnunity service - - - -
_ Employee benefits 825,521 825,521 771,729 53,792
Debt service 414,104 414,104 409,100 5,004
Total expenditures and encumbrances 3,644,647 3,832,006 3,680,965 151,041
-" Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under)
expenditures and encumbrances - - (29'577) (29'577)
Other financing sources(uses):
Operating transfers in - - -
Operating transfers out - - -
-- Total other financing sources - - -
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources
over(under)expenditures and encumbrances $ - $ - $ (29,577) $ (29,577)
Explanation of differences between budgetary and GAAP basis
Excess of revenues over/(under)expenditures-budgetary basis $ (29,577)
Expenditures do not include GASB 34 adjustments 276,354
Excess of revenues over/(under)expenditures-GAAP basis $ 246,777
See independent auditors'report. 49
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2015
WATER FUND
VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
REVENUES
Real property taxes $ 733,261 $ 733,261 $ 733,261 $ -
Real property tax items -
Non property tax items
Departmental income 1,193,570 1,193,570 1,327,979 134,409
Use of money and property 1,219 1,219 2,113 894
Licenses and permits _
Fines and forfeitures
12,773 12,773
Sale of property and compensation for loss
Miscellaneous local sources
State aid
Total revenues 1,928,050 1,928,050 2,076,126 148,076
i Appropriation of prior year's fund balance -
i
Total revenues and appropriation of
prior year's fund balance 1,928,050 1;928,050 2,076,126 148,076
EXPENDITURES AND ENCUMBRANCES 113,133
General government support 130,505 130,505 17,372
Public safety
Health _
Transportation _
Economic assistance&opportunity _ _ _
Culture and recreation 41,485
Home and community service 1,106,840 1,106,840 1,148,325 (
Employee benefits
6,550 6,550 3,856 2,694
6,283
Debt service 684,155 684,155 690,438
Total expenditures and encumbrances
1 928,050 1,928,050 1,859,991 68,059
Excess(deficiency)of revenues and appropriation
of prior year's fund balance over(under) _ 216,135 216,13_`
expenditures and encumbrances
Other financing sources(uses):
Operating transfers in
Operating transfers out -
Total other financing sources -
Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources $ 216,135 $ 216,13
over(under)expenditures and encumbrances $ - $ -
See independent auditors'report.
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
BUDGETARY COMPARISON SCHEDULE(CONTINUED)
DECEMBER 31,2015
SEWER FUND
r VARIANCE
ORIGINAL FINAL FAVORABLE
BUDGET BUDGET ACTUAL (UNFAVORABLE)
no REVENUES
Real property taxes $ 1,194,901 $ 1,194,901 $ 1,194,901 $
Real property tax items - -
Non property tax items - - - -
084,489 2,084,489 2,145,962 61,473
Departmental income 2,
_ Use of money and property 83,862 83,862 137,874 54,012
Licenses and permits - - -
Fines and forfeitures -
Sale of property and compensation for loss -
Miscellaneous local sources - -
State aid -
Total revenues 3,363,252 3,363,252 3,478,737 115,485
Appropriation of prior year's fund balance - - - -
Total revenues and appropriation of
prior year's fund balance 3,363,252 3,363,252 3,478,737 115,485
EXPENDITURES AND ENCUMBRANCES
General government support 84,430 84,430 100 84,330
Public safety - -
Health - -
Transportation -
Economic assistance&opportunity
Culture and recreation - -
Home and community service 2,039,589 2,039,589 2,173,415 (133,826)
Employee benefits 3,190 3,190 2,257 933
Debt service 1,236,0431,236,043 1,236,041 2
i
Total expenditures and encumbrances 3,363,252 3,363,252 3,411,813 (48,561)
Excess(deficiency)of revenues and appropriation
of prior year's fund balance.over(under) 66,924
expenditures and encumbrances - - 66,924
Other financing sources(uses): _
Operating transfers in
Operating transfers out
Total other financing sources - -
a Excess(deficiency)of revenues and appropriation
of prior year's fund balance and other sources 66,924
over(under)expenditures and encumbrances $ $ 66°924 $
k.
51
See independent auditors'report.
i
EXHIBIT I
TOWN OF WAPPINGER,NEW YORK
OTHER POST-EMPLOYMENT BENEFITS PLAN
SCHEDIJLE.OF FUNDING PROGRESS
DECEMBER 31,2015
Unfunded UAL as a
Actuarial Accrued ___Percentage
Actuarial Value of Accrued Liability Funded Covered of Covered
Valuation Assets Liability (UAL) Ratio Payroll Payroll
Year Ended Date (a) (a/b) _ ((b-a)/c)
12/31/2015 12/31/2013 $ - $6,114,097 097 $6,114,097 0.0% $2,850,368 214.50%
I
12/31/2014 12/31/2013 $ - $6,114,097 $6,114,097 0.0% $2,482,941 246.24%
12/31/2013 12/31/2013 $ - $6,114,097 $6,114,097 0.0% $2,182,044 280.20%
12/31/2012 12/31/2011 $ - $6,237,176 $6,237,176 0.0% $2,271,310 274.61%
12/31/2011 12/31/2011 $ - $6,237,176 $6,237,176 0.0% $2,196,774 283.92%
$4,925,385 $4,925,385 0.0% $2,326,424 211.71%
12/31/2010 12/31/2009 $ - 0%
$2,117,550 232.60%
_ 5
12/31/2009 12/31/2009 $ $4,92 ,385 $4,925,385 0.
i
I�
i
I
Exhibit III
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF THE PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
DECEMBER 31, 2015
NYSLRS Pension Plan
Last 10 Fiscal Years*
March 31, 2015
Town's proportion of the net pension
liability(asset) 0.0089152%
Town's proportionate share of the net
pension liability(asset) $ 301,177
Town's covered-employee payroll $ 2,850,368
Town's proportionate share of the net
pension liability(asset) as a percentage of
its covered-employee payroll 10.57%
Plan fiduciary net position as a percentage
of the total penson liability 97.90%
*The amounts presented for each fiscal year were determined as of the System's measurement date
This schedule is resented to illustrate the requirement to show information for 10 years.
P
However,until a full 10-year trend is compiled,the Town will present
information for those years for which information is available.
L
w
53
Exhibit I)
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF CONTRIBUTIONS
DECEMBER 31, 2015
NYSLRS Pension Plan
Last 10 Fiscal Years*
March 31,2015
Y ,
Contractually required contribution $ 497,076
Contributions in relation to the
contractually required contribution 497,076
Contribution deficiency(excess) $ -
Town's covered-employee payroll $ 2,850,368
Contributions as a percentage of covered-
employee payroll 17.44%
*The amounts presented for each fiscal year were determined as_of the System's measurement date
This schedule is presented to illustrate the requirement to show information for 10 years.
However, until a full 10-year trend is compiled, the Town will present
information for those years for which information is available.
i
'I
!I
1
I
i'
OTHER SUPPLEMENTAL IN
FORMATION
11
dt
EXHIBIT V
TOWN OF WAPPINGER,NEW YORK
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
DECEMBER 31,2015
TOTAL
MISC NON-MAJOR
LIGHT AMBULANCE GOVERNMENTAL
FUND FUND FUNDS
' ASSETS
Cash and cash equivalents $28,654 $ 68,632 $ 97,286
Total assets $28,654 $ 68,632 $ 97,286
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable $ 3,505 $ - $ 3,505
Total liabilities 3,505 - 3,505
FUND BALANCE
Unassigned 25,149 68,632 93,781
Total fund balance 25,149 68,632 93,781
Total liabilities
and fund balance $28,654 $ 68,632 $ 97,286
See independent auditors'report. 55
it
EXHIBIT VI
TOWN OF WAPPINGER,NEW YORK
COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCES
NON-MAJOR GOVERNMENTAL FUNDS
i
FOR THE YEAR ENDED DECEMBER 31,2015
TOTAL
MISC NON-MAJOR
LIGHT AMBULANCE GOVERMENTAL
FUND FUND FUNDS
REVENUES
III Property taxes $49,427 $ 395,000 $ 444,427
Real property taxes items - 1,233 1,233
Use of money and property 15 96 111
Total revenues 49,442 396,329 445,771
EXPENDITURES
Health -
395,000 395,000
Transportation 45,148 - 45,148
i
Total expenditures 45,148 395,000 440,148
Excess of revenues over expenditures 4,294 1,329 5,623
Fund Balance,December 31,2014 20,855 67,303 88,158
Fund Balance,December 31,2015 $25,149 $ 68,632 $ 93,781
i
S
1
i
See independent auditors'report.
i
Exhibit VII
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF FINDINGS,RECOAMENDATIONS AND RESPONSES
FOR THE YEAR ENDED DECEMBER 31, 2015
SECTION I- SIGNIFICANT DEFICIENCIES:
PRIOR YEAR FINDINGS - CONTINUING:
Finding 1—Escrow Recordkeeping
Finding: The Town has applied considerable effort in the reconciliation of applicant
escrow subsidiary ledgers to the Town's general ledger balances, however
material differences continue to exist, the amounts of which change from
year to year. Such changes indicate an unreliable reconciliation
methodology. Our examination of the escrow reconciliation revealed the
following:
• As of December 31, 2015, the escrow subsidiary ledgers exceeded the
general ledger balances by$193,007.
• Comments related to escrows have been made since 1993;
Cause: In the past there existed a lack of communication between the Planning
Department and the Accounting Department regarding..,fees charged to
individual escrows. Individual schedules were not always updated and
invoices were coded incorrectly. Reconciliations between the Planning
Department and the Accounting Department were not performed regularly
so that these errors were not caught on a timely basis.
Effect: The Town is responsible for payment of fees that should be taken from
escrow accounts. If not reconciled timely, the Town may not be able to
recover these fees from the rightful applicant.
Recommendation: No amounts should be returned to an applicant until a thorough review of
all transactions has been made, including confirming receipt of escrow
funds received and analysis of all disbursements made on that applicant's
behalf. This will serve as a check that funds are not being returned
appropriately.
A significant portion of the outstanding escrow liability pertains to
inactive applications. The Town should re-review these balances,
including making inquiries of engineers and attorneys regarding their fees
related to these applicants, to confirm that all appropriate disbursements
have been charged to the appropriate applicants.
The analysis of Escrow schedules should continue to be completed on a
monthly basis, comparing department receipt records and charges posted
to individual escrow schedules to general ledger transactions. Names of
escrows should be consistent, such as code and name of property, to avoid
confusion between department and general ledger transactions.
57
Exhibit VII
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF FINDINGS,RECOMMENDATIONS AND RESPONSES (CONTINUED)
FOR THE YEAR ENDED DECEMBER_31,2015
SECTION I- SIGNIFICANT DEFICIENCIES (CONTINUED):
PRIOR YEAR FINDINGS—CONTINUING(CONTINUED):
Finding 1—Escrow Recordkeepine (Continued)
Response: Differences between escrow subsidiary ledgers and the general ledger are
largely historical. Currently, invoices are entered into the subsidiary
escrow ledgers as they are received. Payment to professionals for escrow
services are made with sufficient balance in escrow accounts, otherwise
they are put on hold. Escrow account owners are contacted by phone and
mail on a regular basis to replenish overdue accounts. The reconciliation
process in place ensures there are no differences between the subsidiary
ledgers and the general ledger for new accounts and ongoing transactions.
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Findine 2 - Escrow Funds Negative Balances
Finding: Payments have been made in excess of escrow amounts collected resulting
in excessym
a ents being made on behalf of individual project
P
evelo ers. As of December 31 2015, 140 of a total 370 escrow
owners/
developers. ,
p
accounts
indicated debit/negative balances totaling
$167,099.099.
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 numerous
cases the disbursements exceeded the escrow collected.
Effect: Unanticipated liabilities could be incurred by the Town for which no
revenues/funds have been provided.
Recommendation: We note that the Town Board authorized legislation during 2002 and 2006
whichP rovided for policies and procedures to ensure that the Town does
not subsidize applicant review costs. However, we note that there
continue to be changes in the debit balances. Also, as noted above a
significant portion of these balances pertain to inactive or old applications,
amounting to $104,566. Along with the reconciliations noted above, we
recommend that the Town make the confirmation and collection of these
balances a priority, reviewing the pertinent documentation and
determining a course of action for collection of each account.
Response: All escrow account balances earmarked for reimbursements are reviewed
by separately by three departments before any payment is made. The
Town will continue to work with its partners on the collection of
inactive/old escrow account balances.
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Exhibit VII
TOWN OF WAPPINGER,NEW YORK
SCHEDULE OF FINDINGS, RECOMMENDATIONS AND RESPONSES (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31,2015
SECTION II—OTHER MATTERS:
PRIOR YEAR FINDINGS—CONTINUING:
Finding 3—Cash Disbursement Testing
Finding: During fieldwork, the auditors selected a sample of cash disbursements
and tested them for accuracy and adherence to the Town's purchasing
policy. The auditors noted invoices that required department head and
supervisor approvals under the Town's purchasing policy. However,
some of these invoices did not have department head approval.
Cause: The Town did not get proper approvals for all invoices as described in the
Town's purchasing policy.
Effect: The Town may be paying for items that have not been properly approved
by the department head and supervisor.
Recommendation: We recominend that the Town obtain proper approvals by the department
heads and supervisor for all invoices prior to payment as dictated by the
Town's procurement policy. The auditors recommend that the Town
update their procurement policy and put procedures and controls in place
for items that may not fall under a particular department head.
i
Response: Some departments do not have a departmental head; therefore the
departmental approval signature will not be the voucher. However, all
vouchers are approved by the Town Supervisor before any payment is
processed. In addition, two Town Board members also review all the
vouchers before claims for payment are presented to the fall Town Board
for approval.
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i
Exhibit VII
TOWN OF WAPPINGER,NEW YORK
I
SCHEDULE OF FINDINGS,RECOMMENDATIONS AND RESPONSES (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31 2015
SECTION II—OTHER MATTERS (CONTINUED :
1 CURRENT YEAR FINDINGS:
Findin 4 Capital Projects m Trust and A enc
Findin
The auditors noted that certain capital projects were tracked in trust and
e of trust and agency accounts makes it
agency accounts. The natur
difficult to track revenue and expenditures related to large capital projects
that span multiple years. Tracking such projects in trust and agency
accounts may lead to difficulty in reconciling revenue and expenditures
upon completion and close-out of the project.
Cause: Large capital projects that used trust and agency funds were not tracked in
the capital projects fund.
Effect.
The reconciliation of revenues and expenditures during the closeout of
r e projects is difficult.
lag p J .
that the Town record all capital projects in
the
Recommendation: The auditors recommendrelated revenues
Rec own to track
capital projects fund. This will
enable p p J
expense with
and
ease and accuracy.
i Response: We welcome working with our auditors on a method that will ensure the
that are initially recorded in the trust and
capture of large capital projects
agency funds into the capital projects.
STATUS OF PRIOR YEAR FINDINGS.
Satisfied. Prior Year Finding 4—Payroll Testing
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