Comprehensive Annual Financial Report - June 30, 2010City of
Nor
0
arolina
a heritage of progress
City of Monroe, North Carolina
Comprehensive Annual Financial Report
For The Fiscal Year Ended June 30, 2010
Prepared By
Department of Finance
Assistant City Manager/Director of Finance
Greg Demko
Assistant Director of Finance
Lisa Strickland
Budget Analyst
Mary Lou Clark
CITY
OF
�rIONROE
a heritage of progress
CITY OF MONROE, NORTH CAROLINA
TABLE OF CONTENTS
June 30, 2010
INTRODUCTORY SECTION: Page
Letter of Transmittal ......... ............. ............. ............. ............. .............. ........................... vii - xiii
GFOA Certcate ofAchievementfor Excellence in Financial Reporting ........................... xiv
List of Principal Officials . ............. .... .... ............. ............. .............. ........................... xv
Organizational Chart ....... ............. .............. ............. ............ .............. .... ...................... xvi
FINANCIAL SECTION:
Independent Auditors' Report ........ .............. ............. ............. .............. ........................... 1-2
Management's Discussion and Analysis ....... ............. ............. .............. ........................... 3-12
Exhibit Page
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Assets ........ .............. ............. .. .......... .............. ........................... 1 15
Statement of Activities ........... .............. ............. ............. .............. ... ....................... 2 16- 17
Fund Financial Statements:
Balance Sheet - Governmental Funds ... ............. ............. ............. ...........................
3
18
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets ..... ......................... ........... . .............. ...........................
4
19
Statement of Revenues, Expenditures, and Changes
In Fund Balances — Governmental Funds..... ....... ..... .... ..... ........................
5
20
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to the
Statement of Activities ....... .............. ............. ............. .............. ...........................
6
21
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund ...... .............. ...........................
7
23
Statement of Net Assets - Proprietary Funds ........ ............. .............. ...........................
8
24-25
Statement of Revenues, Expenses, and Changes
in Fund Net Assets - Proprietary Funds ........... ............. .............. ...........................
9
26-27
Statement of Cash Flows - Proprietary Funds ...... ............. .............. ...........................
10
28-31
Notes to the Financial Statements ... .......... ............. .......... ......... ...........................
32-63
Required Supplemental Financial Data:
Law Enforcement Officers' Special Separation Allowance
Schedule of Funding Progress .............. ........... . ............. .............. ...........................
64
Law Enforcement Officers' Special Separation Allowance
Schedule of Employer Contributions . ............. ............. .............. ...........................
65
CITY OF MONROE, NORTH CAROLINA
TABLE OF CONTENTS
June 30,Z0K0
Combining Statement of Revenues, Expenses, and
Page
The Health Care Plan
75
Schedule of Funding Progress .................................................................
66
The Health Care Plan
Schedule of Employer Contribution ..........................................................
67
Other Supplemental Information:
77-80
Combining and Individual Fund Statements and Schedules:
NomoajorGovonnmunta Funds:
81 -85
Combining Balance Sheet ..... .............. ............. ............. .............. ...........................
78-71
Combining Statement of Revenues, Expenditures, and
86-87
Changes in Fund Balances .............. ............. ............. .............. ............... .........
72-73
Internal Service Funds:
8udgdond&otuo|-(N0N-G&Ap):
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets .................................................................
75
Combining Statement ofCash Flows ...........................................................
76
Governmental Funds Budgetary Schedules:
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General Fund — ---.. ---------
77-80
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual -Special Revenue Funds ...........................
81 -85
Schedule of Revenues, Expenditures, and Changes
iu Fund Balances - Budget and Actual - Capital Projects Funds ---------
86-87
Enterprise Funds Budgetary Schedules:
Schedule of Revenues and Expenditures -
8udgdond&otuo|-(N0N-G&Ap):
Water and Sewer Fund ' .............. ............. ............. ----' ---------
88-90
Water and Sewer Capital Projects Fundu—. ............. ----' ---------
91 -92
Electric Fuud—. ............. ----' ............. ............. ----' ---------
93-95
Electric Capital Projects Fuod--. ............. ---- .............. ---------
96
Natural Gaayuud ---' .............. ............. ............. ----' ---------
97'99
Natural Gas Capital Projects Fund ............. ............. ----' ---------
|OO
M
CITY OF MONROE, NORTH CAROLINA
TABLE OF CONTENTS
June 30,2010
Page
Aquatics and Fitness Center Capital Projects Fund ... .............. ........................... 104
AirportFund ..... ............. .............. ............. ............. .............. .................. ........ |O5-l07
Airport Capital Projects Fund ....... ............. ............. — ........... —........................ |OD
Storm Water Fund ............................ ............................................ 109-111
Solid Waste Fuud------------------------- 112-114
Internal Service Funds Budgetary Schedules:
Schedule of Revenues and Expenditures —(NDN'GAAP):
Other Schedules
Schedule of Ad Valorem Taxes &cocivoh|c ...... .......... . .............. ........................... 118
Table Page
STATISTICAL SECTION:
Financial Trends:
Nc&ometo6yCooqponoot---'----..----.----.----..--------- | 123
Changes in Net Assets ... ............. .............. ............. ............. .............. .................. ........ 2 124'|25
Fund Balances, Governmental Funds ......... ............ ............. .............. —........................ 3 126
Revenue
Assessed Value and Actual Value of Taxable Property ......... .............. ........................... 5 128
Direoond0verkqpping Property Tax Rates ............ ............. .............. ........................... 6 129
Pdnoipu9,opertyToxpoyeo—'----..----.----.----..--------- 7 130
Debt Capacity:
Ratios uf Outstanding Debt 6y Type ......... ............. ............. .............. ...... ...... ............. 0 132
Ratios of General Bonded Debt Outstanding ......... .......... . .............. .... ...................... 10 133
0rcound0vo6uppingGovornmeo1u&cdvitieuDcb1-------..--------- || 134
Legal Debt Margin Information ' .............. ............. ............. .............. ............... ......... 12 135
Coverage........ .............. ............. ............. .............. ........................... 13 136
Demographic and Economic Information:
Demographic and Economic Statistics ....... ............. ............. .............. ........................... 14 137
PrincipalEmployers ..... ........... . .............. .... ........ ........... ......... —........................ .... 15 138
Operation Information:
Full-Time Equivalent City Governmental EmployeesbyPuudion -- --------- 16 139
��
CITY OF MONROE, NORTH CAROLINA
TABLE OF CONTENTS
June 30, 2010
Page
Capital Asset Statistics by Function ........... ............. ............. .............. ........................... 18 141
COMPLIANCE SECTION:
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 .. ............. .............. ........................... 143- 144
Report on Compliance with Requirements Applicable to Each
Major Federal Program and Internal Control Over Compliance In
Accordance with OMB Circular A-133 and the State Single Audit
Implementation Act ....... ............. .............. ............. ............. .............. ........................... 145- 146
Report on Compliance with Requirements Applicable to Each
Major State Program and Internal Control Over Compliance In
Accordance with Applicable Sections of OMB Circular A-133 and
the State Single Audit Implementation Act ............. ............. .............. ........................... 147-148
Schedule of Findings and Questioned Costs ............ ............. .............. .......................... 149- 150
Summary Schedule of Prior Year Audit Findings .... ............. .............. ........................... 151
Schedule of Expenditures of Federal and State Awards ......... .............. ........................... 152- 153
iv
Introductory Section
• Letter of Transmittal
• Certificate of Achievement for Excellence in Financial Planning
• List of Principal Officials
• Organizational Chart
CITY
OF
�rIONROE
a heritage of progress
CITY OF MONROE
P.O. BOX 69 – MONROE, NC 28111-0069
PHONE 704-282-4500
FAX 704-283-9098
October 26, 2010
To the Honorable Mayor Bobby Kilgore, Members of the City Council,
and Citizens of the City of Monroe:
We are pleased to present to you the Comprehensive Annual Financial Report (“CAFR”) of the City of
Monroe for the fiscal year ended June 30, 2010. North Carolina law requires that all general-purpose local
governments publish within four months of the close of each fiscal year a complete set of financial
statements presented in conformity with generally accepted accounting principles (“GAAP”) and audited in
accordance with generally accepted auditing standards by a firm of licensed certified public accountants.
The independent certified public accounting firm of Potter & Company, P.A., has audited the financial
statements and supplemental schedules contained herein, and issued an unqualified (“clean”) opinion on the
City of Monroe’s financial statements for the year ended June 30, 2010. The independent auditor’s report
is presented as the first component of the Financial Section of this report.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed
information is accurate in all material respects and is reported in a manner designed to present fairly the
financial position and results of operations of the various funds of the City. All disclosures necessary to
enable the reader to gain an understanding of the City’s financial activities have been included.
The goal of the annual independent audit is to provide reasonable assurance that the financial statements of
the City for the fiscal year are free from material misstatement. The independent audit involved examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the
accounting principles used and significant estimates made by management; and evaluation of the overall
financial statement presentation.
The independent audit of the financial statements of the City was part of a broader, federally mandated
“Single Audit” designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only on the fair presentation of the
financial statements, but also on the audited government’s internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the
administration of federal awards. These reports are available in the City of Monroe’s CAFR.
Generally accepted accounting principles require that management provide a narrative introduction,
overview, and analysis to accompany the basic financial statements in the form of Management’s
Discussion and Analysis (“MD&A”). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The City’s MD&A can be found immediately following the Report
of the Independent Auditors.
vii
The Reporting Entity and Services Provided
For financial reporting purposes, in accordance with the criteria in Governmental Accounting Standards
Board (“GASB”) Statement No. 14, the City of Monroe includes all funds, agencies, boards, commissions
and authorities that are controlled by or are financially dependent upon the City. Control by or financial
dependence was determined on the basis of obligation of the City to finance deficits, guarantee debt, select
the governing authority, approve the budget, have authority to make a public levy, and to have ownership
of assets. As a result of implementing GASB Statement No. 14, the City of Monroe has included the City
of Monroe ABC Board and the Monroe Tourism Development Authority as discretely presented
component units. Additional information on these legally separate reporting entities can be found in the
Notes to the Financial Statements.
The City provides numerous services for its citizens including airport operations, cultural and recreational
activities, general administration, planning, zoning, economic development, building inspections, code
enforcement, police, fire, sanitation, cemetery management, tourism, public works, stormwater, and street
maintenance. The City also provides and maintains electric, natural gas, water, and sanitary sewer utilities
for the benefit of its citizens and businesses. This report includes the fiscal activities of the City in the
provision of these services.
The City also provides financial support to certain boards, agencies and commissions to assist their efforts
in serving our citizens. Organizations that receive support from the City include the American Red Cross,
HealthQuest, Monroe High School Athletic Foundation, Community Health Services of Union County,
Union County Crisis Assistance Ministry, Union County Habitat for Humanity, Union County Community
Arts Council, Council on Aging in Union County, the Monroe-Union County Community Development
Corporation, the Union County Historic Preservation Commission, Turning Point, Union County
Community Action, Inc., the Literacy Council of Union County, the Union County Community Shelter,
Union Smart Start, Arc of Union County, Monroe Middle School, the Police Athletic League, United
Family Services, Urban League of Central Carolinas and the Union County JobReady Partnership Council,
Inc.
Organization of Government
The City of Monroe was established in 1844, and is located near the center of Union County in the southern
Piedmont region of North Carolina. The City is a diverse community of just over 37,000 residents, and has
an incorporated area of over 29 square miles. Monroe serves as the County seat for Union County, and is
the County’s largest municipality. Monroe’s corporate limits are approximately seven miles southeast of
Charlotte, and the City has experienced tremendous growth due to its proximity to the fastest growing
region of Charlotte and Mecklenburg County. The City has the statutory authority to extend its corporate
limits through voluntary and involuntary annexation when deemed appropriate by the City Council.
The City is organized under a Council-Manager form of government, with a six-member City Council and
Mayor serving as the governing body, and who are responsible for policy-making and establishing
legislative authority. Council members are elected on a non-partisan basis to staggered four-year terms.
The Mayor is elected to serve a two-year term, and is a full voting member on the City Council.
The City Council is responsible for passing ordinances, adopting the annual budget, appointing committees,
and hiring the City Manager, City Attorney, and City Clerk. The City Manager is responsible for carrying
out the policies and ordinances of the City Council, for overseeing the daily operations of the government,
and for selecting the department heads to manage the various City departments.
The City takes pride in the services offered to our citizens, and the mission of City staff is to provide
reliable, responsive, quality service to our customers at the lowest reasonable cost. We accomplish this
through professional and courteous service consistent with making Monroe a vibrant and progressive
community. City staff strives to be proactive in addressing the various needs of the community, and
adheres to the guiding principles of Teamwork, Customer Service, Respect, and Accountability.
viii
Economic Condition and Outlook
In spite of the national recession, new and existing industries have announced investments in
manufacturing equipment and facility expansions totaling more than $72 million. Monroe’s workforce is
diversified, consisting of industrial, construction, agricultural, and retail employment. The City’s economic
base includes major employers involved in aerospace, plastics, food processing, professional services, and
education. While serving as a regional employment and commercial center for surrounding communities,
the City maintains a small town atmosphere and enjoys the benefits of being part of the Charlotte
metropolitan region.
Monroe’s industrial citizens continue to grow and prosper giving Monroe and Union County national
recognition. Last fiscal year, Monroe was named in the Top 5 in the United States for Excellence in
th
Aerospace Recruitment by Expansion Solutions magazine and Union County was 10 in the nation in job
creation from 2000 to 2008 by CNN/Money. April 2010 we were named “Top 10 Aerospace Communities
in the South You May Not Know About” by Southern Business Development magazine. Because of our
recruitment and retention efforts, Monroe has maintained the lowest unemployment in the Charlotte Region
for 11 consecutive years.
Monroe has evolved into a premier location for precision manufacturing. Nearly 12% of the industrial base
and 26% of the manufacturing employment is deep-rooted in aerospace, resulting in the highest geographic
concentration of aerospace companies in North Carolina (NC Department of Commerce – Sept 2008).
Also, Monroe’s industrial base is international with 10 countries represented among 15 companies. With
recent investments from ATI Allvac, Goodrich Corporation, and Turbomeca Manufacturing, Monroe will
sustain employment and utility customers during the current economic trough and is well positioned to
prosper as the economy rebounds.
Major Initiatives
The City of Monroe has been involved in many significant initiatives during the past fiscal year. The City
Council has identified and addressed key issues that are of importance to the future of the City, including
utility planning for water, wastewater, electric, and natural gas demands brought on by system growth. The
City has developed a fifteen year rate model for projecting water and wastewater rates to address the impact
of future capital improvement projects on the City’s rate structure. The goal is to achieve single digit rate
increases rather than large rate increases in the year infrastructure is financed.
City Council is committed to support the City’s growth, and has issued Certificates of Participation Notes
to fund construction of approximately 43 miles of natural gas pipeline to connect the City’s system directly
to the transcontinental pipeline. The pipeline was put in service in April 2010, and will provide the City
with capacity to significantly grow and expand the natural gas system and provide significant opportunities
for economic development. With the line completed the City is able to provide natural gas to our industries
and citizens without having to pay costly transportation costs to a third party provider.
The City continued work associated with $30.9 million in Combined Enterprise Fund Revenue Bonds in
the past fiscal year to fund projects as follows:
Natural Gas System – Land acquisition and construction of an 8” natural gas line loop
around the City. (Project completed)
Electric System – Construction of an electric substation, the installation of new
transformers, the replacement of existing transformers, the construction of
approximately 12.8 miles of transmission loop around the City and the installation of
circuit breakers at an existing substation. Substation construction is essentially complete
with approximately 4/5 of the transmission line work completed.
Water System – Construction of a one million gallon elevated water storage tank,
17,000 feet of water transmission mains in the City’s western pressure zone, and 15,000
feet of raw water transmission main were successfully completed and placed in service.
ix
In January 2009, the City implemented a stormwater utility program to address the EPA’s National
Pollutant Discharge Elimination System, Phase II (NPDES) requirements and to provide for a
comprehensive stormwater program to enhance the existing stormwater system. As part of the NPDES
requirements, the Engineering Department has developed several stormwater public education and
involvement programs. These programs include classroom presentations using Enviroscape (watershed
model), Adopt-a-Stream, storm drain marker and establishment of a permanent citizen Stormwater
Management Advisory Committee (SMAC). As part of the NPDES Illicit Discharge Detection and
Elimination requirement, the Engineering Department is updating the stormwater infrastructure system
maps, which is scheduled for completion by the end of 2010.
As part of the program to enhance the existing stormwater system, the City established a 6-person
stormwater maintenance crew, whose responsibilities include repair, new construction and routine system
maintenance on the stormwater infrastructure system. The stormwater maintenance crew has completed
over 380 work orders in addition to completing four capital improvement projects and two major drainage
improvement projects. In the upcoming year, two capital improvement projects are proposed for the
stormwater maintenance crew. The Engineering Department has also retained an engineering firm to
complete a stormwater master plan for the entire city. The engineering consultants completed a pilot
stormwater master plan for the Stewart Creek Tributary 4 watershed. In 2010, the engineering consultant is
completing the remaining stormwater master plan for the Stewarts Creek watershed. Stormwater master
planning for the entire city to identify and prioritize future stormwater capital improvements needs will be
completed over the next several years.
Due to the economic downturn the Water Resources Department has deferred several large capital project
initiatives, including the Reclaimed Water System project, Bearskin Sewer Outfall, and WWTP expansion.
Current initiatives are to enhance asset management programs focusing on renewal and replacement of
aging water and wastewater infrastructure. Utility coordination/realignments for two large roadway
projects, the MLK extension and the Turnpike Authority Monroe Parkway are a priority. Work continues
on the Stewart Creek sewer outfall and pump station replacement. Project funding is via a proposed $13.0
million dollar SRF loan for the NCDENR Constructions Grants and Loans Division.
The City continues to invest in its future. The Charlotte-Monroe Executive Airport is undergoing a $25+
million renovation and expansion, financed partially through a Combined Enterprise Revenue Bond. This
project includes hangar acquisition and construction, terminal expansion design, ramp area expansion,
taxiway widening, and runway lengthening and strengthening. The long-range master plan for the airport
facility projects nearly $800 million of new aircraft and hangar investment over the next 40 years. The
community is poised to open its second industrial park, known as AeroPointe Industrial Centre, located
adjacent to the airport. AeroPointe will compliment the airport and the established 500-acre Monroe
Corporate Center, offering housing to smaller companies that will support the local large manufacturing
base. Finally, City Council has approved the investigation of a third industrial park that would continue to
diversify Monroe economic base.
The fire department has completed or made progress on various goals and objectives included in the
department’s community driven strategic plan. Approximately 100 members of the community along with
over 30 members of the fire department came together in 2009 to develop the strategic plan, which will
guide the fire department over the next five years.
The fire department developed and implemented a risk assessment program, which includes conducting
surveys of facilities for associated fire risks.
The fire department developed an enhanced annual training plan to meet core competencies and developed
drills to meet the needs of the annual training plan.
The department added mobile data terminals in fire apparatus. These mobile computers allow information
to be sent electronically between the emergency dispatch center and the fire apparatus. This allows
firefighters to view valuable data when responding to emergencies, including caller information, mapping,
fire hydrant locations and other important information. As part of this system, the apparatuses are also
x
equipped with automatic vehicle location systems, which enable dispatchers and other firefighters to see
where fire apparatus are located and from which direction they are responding.
The fire department’s on-duty supervisor’s vehicle was equipped with a command center to aid in more
efficient and effective management of emergency incidents. This command center features mobile CAD
technology, an electronic accountability system to track firefighters and a video link to thermal imaging
cameras used by firefighters inside of buildings during structure fires.
The City’s fire department currently holds a Class 3 insurance rating from the Insurance Services Office
(ISO), which reflects well on the City’s professional fire operations and our water system infrastructure.
This rating also allows the City’s businesses and homes to enjoy lower fire insurance premiums.
In the 2009-2010 fiscal year, the police department was awarded reaccreditation by the Commission on
Law Enforcement Agencies. This was a significant accomplishment for our entire agency and the City of
Monroe.
During the past year, the Monroe Police Department participated in the National Night Out Community
stth
Event. The Department finished 1 place in North Carolina and 8 in the United States for agencies our
size. Monroe Police Department has a tremendous relationship with the communities it serves and the
participation from these communities was a direct reflection in our success with this event.
The Monroe Police Department participated in several significant community events during the past year.
Monroe officers are involved with the DARE program and provide a week long educational program to the
students that participate in the DARE program. The Monroe Police Department has three different sports
teams in the Police Athletic League, and participated in the True Blue Christmas program that provides
gifts to underprivileged children in local communities.
The Community Intervention Team moved into Maurice Street Apartments. This increased the officer’s
presence in this community and created a better working relationship with the Monroe Housing Authority.
The Special Response Team and the Honor Guard were increased in personnel to meet the needs of our
agency. The Traffic Team was expanded by an additional officer to assist with traffic enforcement and the
traffic education programs that our department conducted throughout the year. Our agency continues to
transition to the 800 MHz radio system and this process will continue until 2013.
The City of Monroe continues to aggressively seek funding for roadway improvements, and has been active
in its support for the development and construction of the Monroe Parkway as well as M. L. King
Boulevard, which is currently nearing completion. In conjunction with the Downtown Master Plan, the
City contracted with a transportation consultant to evaluate and prepare conceptual designs of several
transportation solutions that will enhance the development of the Downtown area. One of the primary
projects identified by the consultant includes extending Jefferson Street to connect with Franklin Street
west of Charlotte Avenue. This project will address congestion on Charlotte Avenue between the Franklin
and Jefferson Street intersections. In addition, the City has design and construction drawings prepared for
the re-alignment of Concord Avenue with Charlotte Avenue to address congestion as vehicles move out of
the Downtown Area and once funding is obtained, will be in position to bid and construct this much needed
improvement.
The City of Monroe, Mayor and Council and concerned citizens would like to give Downtown its own
market niche. City Council has approved a Master Plan for the downtown area. Opening new businesses
Downtown, thereby improving the business mix, attracting shoppers and residents, raising property values
and sales tax revenues are all elements of the plan. Restored buildings, attractive storefronts and pedestrian
friendly walks and streets will gradually change and reinforce the public’s perception that Downtown is the
‘heart and soul’ of Union County. Monroe which is designated a National Trust Main Street Community,
uses the Main Street approach to Downtown revitalization, a comprehensive, incremental four-point
approach. The revitalization effort will focus on the areas of design, organization, promotion, and
economic restructuring: a practical Downtown management strategy, in combination with the Downtown
Master Plan, will produce fundamental changes in the Downtown’s economic base. The Downtown Wi-Fi
and sound system projects are complete. The Monroe Hardware Warehouse project, which will add both
xi
residential units and retail shops, is in the construction phase with completion anticipated by end of 2010.
The Warehouse project has been approved for Federal and State Rehab Tax Credits and also Mill Tax
Credits. Developers for the Joffre Hotel site have withdrawn their proposal due to the market and
economy. The Five Points Gateway Signage project entering downtown has been completed. Future plans
for downtown will be prioritized according to the Master Plan and the City’s Strategic Plan developed
along with City Council.
The IT department is in the process of updating the City’s server hardware and software. A few new
servers have been installed to run VM-Ware. This virtual server environment will allow the IT department
to better manage the server hardware requirements and provide more up-time to the City’s IT
infrastructure. Additional virtual servers are planned for redundancy and growth.
A new data center has been constructed within the City Hall building to accommodate needed growth and
future expansion. The new data center has redundant cooling capacity and uninterruptable power supplies.
The IT department has started replacing the network switches that will provide redundancy and faster
throughput for the network.
There are many other improvements that the IT department is in the process of completing or are planned
for the near future that will put the entire IT infrastructure in a better position to handle upcoming IT
requirements.
The City of Monroe pursues grant funding to provide resources for the completion of various projects. The
City has recently received funding from the NC Aeronautics Council / NC Division of Aviation for $2.6
million for the airport runway overlay and strengthening and apron pavement rehabilitation project. The
City is also continuing to receive funding from the US Department of Justice for a three-year grant for two
police officers.
The City is also a regular recipient of Local Law Enforcement Block Grants, Community Development
Block Grants, Federal Assistance to Firefighters’ Grants, and Homeland Security funds.
Long-Term Financial Planning
The city seeks to maintain a strong financial position. This objective requires regular long-term planning of
operating and capital requirements for its major general government and enterprise programs. In doing so,
the City relies on key financial policies and procedures for dealing with future events in financially
responsible ways.
Annually, the City adopts a 5-year Capital Improvement Program (CIP) that looks ahead to project and plan
for capital needs. The program outlines each capital project, the estimated cost, description and funding
source. This city takes into consideration and monitors CIP needs that require additional operating costs
and personnel. Monroe City Council and management are committed to budgeting and managing all
resources in the most cost-effective manner.
Relevant Financial Policies
The City regularly reviews revenues and expenditures throughout the fiscal year. During the course of the
year, if actual revenues are expected to fall short of the budgeted amount, expenditures are reduced to
ensure that a shortage of funds or a significant use of fund balance does not occur. City financial policy
dictates that our current operating revenues be sufficient to support current operating expenditures.
The City administers a cash management and investment program that seeks to maximize, in order of
priority, the preservation of funds, liquidity and interest earnings over its cash and investments. Cash
resources of the individual funds are combined to form a pool of cash and investments. The average cash
and investment pool balance during the year was $98,789,312 and the average investment earnings rate was
3.0%. Investment income includes the change in the fair value of investments. During the year monies
were invested and secured in accordance with state law.
xii
A key financial goal of the City for many years has been the maintenance of a 25% undesignated fund
balance level in the General Fund. In addition, the City has desired to appropriate a consistent level of fund
balance each year resulting from positive budget variances. These goals are met in the fiscal year 2010
results that are built into the 2010 -11 operating budgets. Other practices followed are designed to avoid the
meeting of recurring expense needs with one -time revenue resources and to ensure an ongoing mix of pay -
as- you -go funding of capital needs with long -term debt.
Response to Current Economic Conditions
The declining economy and national fiscal credit problems have impacted Monroe, as they have all local
governments. In response to this condition, the City has taken actions to offset possible budget shortfalls.
In fiscal year 2010, these actions included a freeze on hiring, restricting travel to training conferences
necessary for professional certifications, reduction in workforce by six positions, relocation of six
employees in order to close their positions in the general fund and early retirement for seven employees
who took advantage of the incentive offered. In fiscal year 2011 operating expenses are being monitored
and many capital projects have been delayed. The city is also monitoring adding of additional personnel
that will require multi -year funding commitments. Revenues and expenses will be tracked closely
throughout the fiscal year. City Council, management and staff are committed to providing the citizens of
Monroe the highest quality of essential services throughout the economic decline and maintain the financial
integrity our community expects.
Awards and Acknowledgements
Awards. The Government Finance Officers Association of the United States and Canada ( "GFOA ")
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Monroe for its
Comprehensive Annual Financial Report for the fiscal year ended June 30, 2009. This was the 17th
consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of
Achievement, a government must publish an easily readable and efficiently organized CAFR. This report
must satisfy both GAAP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR
continues to meet the Certificate of Achievement Program's requirements, and we are submitting it to the
GFOA to determine its eligibility for another certificate.
Acknowledgements. The preparation of this report is a very intensive project, and could not have been
accomplished without the assistance and dedication of the Finance Department staff and other personnel
from various departments who assisted in its preparation. A particular thank you goes to Assistant Finance
Director Lisa Strickland and Budget Analyst Mary Lou Clark who have provided valuable assistance with
financial and accounting expertise this past year.
The Mayor and City Council continue to be very supportive of our efforts to produce the best financial
reports possible for our citizens, and they provide leadership and support in maintaining the highest
standards of professionalism in the fiscal management of the City. We appreciate their support in granting
us the time and funding to generate this document, and allowing us to submit it to the GFOA for
consideration. Lastly, we would like to express our appreciation to our independent auditing firm, Potter &
Company, P.A., for their cooperation and assistance in these efforts.
Respectfully submitted,
Wayne Herron Greg Demko
City Manager Assistant City Manager /Director of Finance
xm
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Monroe
North Carolina
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
fTSTAIES
CMPAM
Stu
affo President
Executive Director
AV
CITY OF MONROE,
NORTH CAROLINA
LIST OF PRINCIPAL OFFICIALS
June 30, 2010
Elected Officials
Bobby G. Kilgore
Mayor
Dottie M. Nash
Mayor Pro Tem
John B. Ashcraft, Jr. Billy A. Jordan
Margaret Desio
Lynn A. Keziah Freddie Gordon
City Administration
H. Wayne Herron, Jr.
City Manager
Brian J. Borne Greg Demko
Assistant City Manager/Downtown Monroe Assistant City Manager/Finance Director
Director
Terry M. Sholar Bridgette H. Robinson
City Attorney City Clerk
R. Christopher Platé James N. Loyd, Jr.
Executive Director of Economic Director of Engineering
Development and Aviation
Debra C. Reed Lisa W. Stiwinter
Director of Human Resources Director of Planning
Don D. Mitchell Debra C. Duncan
Director of Energy Services Police Chief
Ronald D. Fowler Bruce Bounds
Fire Chief Director of Information Technology
C. Michael Courtney Russell G. Colbath
Director of Parks & Recreation Director of Water Resources
xv
City Of Monroe, North Carolina
Organizational Chart
Citizens
Mayor and City Council
City Manager
City Clerk City Attorney
Assistant City Manager/ Assistant City Manager/
Finance Director Downtown Monroe Director
Human Resources Director I I Engineeering Director I I I Economic Development and
Aviation Director
Police Chief I I Fire Chief I I I Information Technology Director
Water Resources Director I I Planning Director
Energy Services Director
Parks and Recreation Director
POTTER &^O° / , PA.
CERTIFIED PUBLIC ACCOUNTANT'S
INDEPENDENT `REPORT
The Honorable Mayor and The City Council
City o[Monroe
North Carolina
Wc have audited the accompanying financial statements o[the governmental activities, the business-type amivkies,
the discretely presented component units, each major fund, and the aggregate romuinioghundinkxnmtionofdmChy
of Monroe, North Cmn|inu, as of and for the year ended June 30, 2010, which collectively comprise the City of
Moovnc's basic financial statements as listed in the (uWc of contents, These finomoio| statements are the
responsibility o[ the City ofK4onvoo'smanagement. Our responsibility isUo express an opinion on these financial
statements based on our audit.
We conducted our audit in 0000rdonoc with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in (;ovcrvmum Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perfbnn the audit to obtain
ousoouHc assurance about whether the basic Onon6o| statements are free ofmaterial misstatement. The financial
aNtmncn$ of City of Monroe ABC Board and K4onmc Tourism Development Authority were not audited in
accordance with Government Auditing Standards. /\o audit includes examining, ooutest basis, evidence supporting
the amounts and disclosures in the hounciu| statements. An audit also includes assessing the accounting principles
used and d&oificun| estimates made by management, as well as evaluating the overall finuooio| s(o(cmcu,
presentation. VV* believe that our audit provides u reasonable basis for our opinion.
In our opinion, the financial statements referred tu above present 6aidy, in all material respects, the financial position
of the @pvcmmcntu| activities, the business-type activities, the discretely presented component units' each major
fund, and the aggregate remuinin�fund information o[ the City ofK4onroc'74n�h Carolina, usn[ June 30,20|0.and
the respective changes in financial position and cash flows, where appropriate, thereof and the respective budgetary
comparison for the General Fund for the year then ended in conformity with accounting principles generally accepted
in the United States n[America.
ln accordance with Government Auditing Standards, we have also issued our report dated November l20lOonour
consideration of the City of Monroe's internal control over financial reporting and our tests of its compliance with
certain provisions of laws, regulations, contracts, and grants. The purpose of the report ix(udescribe 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 the internal control over financial reporting oron compliance. That report is an in{cyro/ pun
of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with
this report inconsidering the results of our audit.
Management's Discussion and Analysis, the Law Enforcement ODlocm' Special Separation Allowance Schedule and
Other Pommmp|oyment Benefits (OPE8) Schedules of Funding Progress and Employer Contributions are not n
required part of the basic financial statements but are supplementary information required by the Governmental
Accounting Standards Boon]. Wc have applied certain limited procedures, which consisted principally of inquiries
o[ management regarding the methods o[ measurement and presentation of the required supplementary information,
However, we did not audit this information and express no opinion on h.
Our audit was performed for the purpose o[foming an opinion on the financial statements that collectively comprise
the basic Onuooiu| statements of the City of Monroe, North Carolina. The introductory section, the other
supplementary io/omonainn section, and the statistical section as listed in the accompanying table of contents are
presented for purposes of additional analysis and are not o required part of the basic financial xNmmcnM. The
114 North Church Street u Monroe, NC28112w704.283.8189m7O4.289.343V fax mvm^*xQotopotteccom
accompanying schedule of expenditures of federal and state awards is presented for purposes of additional analysis
as required by U.S. Office of Management and Budget Circular /\-|33' Audits of States, Local Co"crnn,cnu. and
Non-Profit Organizations, and the State Single Audit Implementation Ac\, and an not u required pmt of the basic
financial statements. The other supplementary information and the schedule of expenditures of federal and Skoxc
awards have been subjected to the auditing procedures applied in the audit o[ the basic financial statements and, in
our opinion, are fairly stated` in all material oxpcuta` in relation to the basic Onuodu| gmcmeota taken as u whole.
The introductory section and the statistical section have not been subjected to the auditing procedures applied by us
in the audit of basic financial statements and, accordingly, *e express 000pinion on them.
November l20|0
Monroe, North Carolina
Management’s Discussion and Analysis
As management of the City of Monroe (the City), we offer readers of the City’s financial statements this
narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30,
2010. We encourage readers to read the information presented here in conjunction with additional
information that we have furnished in the City’s financial statements, which follow this narrative.
Financial Highlights
The assets of the City of Monroe exceeded its liabilities at the close of the fiscal year by
$321,497,500 (net assets). Of this amount, $106,677,791 (unrestricted net assets) may be used to
meet the government’s ongoing obligations to citizens and creditors.
The government’s total net assets increased by $7,619,742. This increase was the net of a
decrease of $1,269,463 from governmental activities and an increase of $8,889,205 for business-
type activities.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $21,353,112, a decrease of $1,534,138 in comparison with the prior year.
Approximately 82 percent of this total amount or $17,622,970 is available for spending at the
government’s discretion (unreserved fund balance).
At the end of the current fiscal year, unreserved fund balance for the General Fund was
$15,613,450 or 60 percent of total general fund expenditures for the fiscal year.
The City’s total debt not including compensated absences and OPEB liability, net of retirements,
decreased $3,998,544 (4%) during the current fiscal year. The primary elements of the decrease
was the issuance of an installment financing loan totaling $1,697,000 for equipment purchases
offset by $5,695,544 in debt retirement.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to City of Monroe’s basic financial
statements. The City’s basic financial statements consist of three components: 1) government-wide
financial statements, 2) fund financial statements, and, 3) notes to the financial statements (see Figure 1).
The basic financial statements present two different views of the City through the use of government-
wide statements and fund financial statements. In addition to the basic financial statements, this report
contains other supplemental information that will enhance the reader’s understanding of the financial
condition of the City of Monroe.
Required Components of Annual Financial Report
Figure 1
Management’s Discussion Basic Financial
and Analysis Statements
Government-wideFund Financial Notes to the
Financial Statements Statements Financial Statements
Summary Detail
3
Basic Financial Statements
The first two statements (Exhibits 1 and 2) in the basic financial statements are the Government -wide
Financial Statements. They provide both short and long -term information about the City's financial
status.
The next statements (Exhibits 3 through 10) are Fund Financial Statements. These statements focus on
the activities of the individual parts of the City's government. These statements provide more detail than
the government -wide statements. There are three parts to the Fund Financial Statements: 1) the
governmental funds statements; 2) the budgetary comparison statements; and, 3) the proprietary fund
statements.
The next section of the basic financial statements is the notes. The notes to the financial statements
explain in detail some of the data contained in those statements. After the notes, supplemental
information is provided to show details about the City's individual funds. Budgetary information
required by the General Statutes also can be found in this part of the statements.
Government -Wide Financial Statements
The government -wide financial statements are designed to provide the reader with a broad overview of
the City's finances, similar in format to a financial statement of a private- sector business. The
government -wide statements provide short and long -term information about the City's financial status as
a whole.
The two government -wide statements report the City's net assets and how they have changed. Net assets
are the difference between the City's total assets and total liabilities. Measuring net assets is one way to
gage the City's financial condition.
The government -wide statements are divided into three categories: 1) governmental activities; 2)
business -type activities; and, 3) component units. The governmental activities include most of the City's
basic services such as public safety, parks and recreation, and general administration. Property taxes and
state and federal grant funds finance most of these activities. The business -type activities are those that
the City charges customers to provide. These include the water and sewer, electric, natural gas, aquatics
and fitness, and airport services offered by the City of Monroe. The final category is the component
units. Although legally separate from the City, the ABC Board and the Tourism Development Authority
are important to the City because the City exercises control over both Boards by appointing their
members. The component units are also required to distribute a portion of their profits to the City.
The government -wide financial statements are on Exhibits 1 and 2 of this report.
Fund Financial Statements
The fund financial statements (see Figure 1) provide a more detailed look at the City's most significant
activities. A fund is a grouping of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City of Monroe, like all other
governmental entities in North Carolina, uses fund accounting to ensure and reflect compliance (or non-
compliance) with finance- related legal requirements, such as North Carolina General Statutes or the
City's budget ordinance. All of the funds of City of Monroe can be divided into two categories:
Governmental Funds and Proprietary Funds.
Governmental Funds — Governmental funds are used to account for those functions reported as
governmental activities in the government -wide financial statements. Most of the City's basic services
are accounted for in governmental funds. These funds focus on how assets can readily be converted into
4
cash flow in and out, and what monies ure left at that will ie available for spending in the next
year. Governmental funds are reported using ao accounting method called modified accrual accounting
which provides u short-term spending focus. /\ou result, the governmental fund fiuuuciu|statements give
the reader detailed obod,teoo view that helps him or her determine if there are more or less Duuociu]
resources available to finance the City's programs. The relationship bctv/ocn government activities
(reported in the Statement of Net /\aaetm and the Statement of Activities) and governmental funds is
described in a reconciliation that is a part of the fund financial statements.
The City of Monroe maintains eight individual governmental funds. Information iu presented separately
in the governmental fund balance sheet and in the govccuoocotul fund statement of revenues,
expenditures, and changes in fund balances for the General Fund which is considered to be a major [und.
Data from the other seven governmental funds are combined into u single, aggregated presentation.
Individual fund data for each of these non-major govcmn/ncmdul funds is provided in the lbnm or
combining statements r\orvvhece in this report. These other seven governmental funds are made up of
two capital projects funds and five special revenue funds including Community Development, Dovvniuvvn
Monroe, Occupancy Tax, City Grant Programs and State Grant Programs.
The City of Monroe adopts an annual budget for its General Fund, uu required hv North Carolina General
Btundou. The budget is a legally adopted document that incorporates input from the citizens of the City,
the management of the City, and the decisions of the Council about which services to provide and how to
pay for them. It also authorizes the City to obtain funds from identified sources to Onunoc these current
period activities. The budgetary statement provided for the General Fund demonstrates how well the
City complied with the budget ordinance and whether or not the City succeeded in providing the services
um planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis
o[ accounting and is presented using the same tbonui, language, and oluaaifion1ionouothe legal budget
docomncut The statement shows four columns: l\ the original budget uu adopted by the Council; 2\the
final budget as unnouded by the Council; 3) the actual rsunucoes` charges to appropriations, and ending
balances in the Geuomn| Fund; and, 4) the difference or variance bctp/con the Oou| budget and the actual
resources and charges. To account for the difference between the budgetary basis of accounting and the
modified accrual basis, n reconciliation showing the differences in the reported activities is shown at the
end of the budgetary statement.
Proprietary Funds — The[ity of Monroe maintains two types of proprietary funds: enterprise and internal
service. Enterprise Funds are used to report the same functions presented as business-type oodvhiem in
the government-wide fiuuuuiol statements. The City uses enterprise funds to account for its water and
sewer, e|oobio, natural gas, aquatics and Giucuu center, mk)nuvvuter, sanitation and airport operations.
Theme funds are the munoo as those functions mho.vo in the business-type ecdvdiom in the Statement of
Internal service funds are an accounting tool used to uooumu|eto and mUnoote costs internally among
various functions. The City utilizes an internal service fund for its health, worker's compensation and
property and oouuu|ty insurance. Because services accounted for in the internal service fund
predominately benefit Oovenmmou1ul rather than business-type functions, it has been included within the
governmental activities inthe government-wide financial statements.
Notes to the Financial Statements — The notes provide additional information that is eoocnLu| to o full
understanding ofthe data provided in the government-wide and fund financial statements. The notes 10
the financial statements begin on page 32 of this report.
Other lof0000tioo — bo addition to the basic financial statements and accompanying nniom, this report
includes certain required supplementary information concerning the City of Monmc`m progress in
R
funding its obligation to provide pension benefits to its employees. Required supplementary information
can be found beginning on page 64 of this report.
Government -Wide Financial Analysis
The following is a summary of the City's net assets for governmental and business -type activities for the
current year as compared to the prior year. For more detail see the Statement of Net Assets on page 15.
The total net assets of the City of Monroe were $321,497,500 as of June 30, 2010. Of the City's total net
assets $214,564,835 (66 %) reflects its investment in capital assets (e.g. land, buildings, machinery, and
equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of the outstanding related
debt, the resources needed to repay that debt must be provided by other sources, since the capital assets
cannot be used to liquidate these liabilities.
An additional portion of the City's net assets ($254,874) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of $106,677,791 (34 %) is unrestricted.
These assets may be used at the City's discretion in meeting its ongoing obligations to citizens and
creditors.
The City's net assets have increased by $7,619,742 during the current fiscal year. The biggest part of this
increase was due to the construction in progress of the various bond related utility improvements in the
City's electric, natural gas, water and airport operations. Restricted reserves represent the accumulation
of funds from the state street aid allocation to be used for street maintenance. Unrestricted reserves
represent increases due to savings in anticipated expenses and actual revenue exceeding anticipated
revenue.
The following is a summary of the City's governmental and business -type activities for fiscal year 2010,
including revenues and expenses, with a comparison to the prior year. For more detail see the Statement
of Activities on page 16 -17. -
City of Monroe's Net Assets
Figure 2
Governmental
Activities
Business -type
Activities
Total
2010
2009
2010
2009
2010
2009
Current and other assets
$25,542,119
$27,034,812
$101,007,280
$120,245,086
$126,549,399
$147,279,898
Capital assets
81,505,564
81,636,681
226,582,766
204,894,111
308,088,330
286,530,792
Total assets
107,047,683
108,671,493
327,590,046
325,139,197
434,637,729
433,810,690
Long -term liabilities outstanding
8,582,025
9,047,818
88,137,311
91,293,944
96,719,336
100,341,762
Other liabilities
4,555,829
4,444,383
11,865,064
15,146,787
16,420,893
19,591,170
Total liabilities
13137,854
13,492,201
100,002,375
106,440,731
113,140,229
119,932,932
Net assets:
Invested capital assets, net of
related debt
73,296,107
74,438,325
141,268,728
127,103,540
214,564,835
201,541,865
Restricted
254,874
2,060
-
254,874
2,060
Unrestricted
20,358,848
20,738,907
86,318,943
91,594,926
106,677,791
112,333,833
Total net assets
$93,909,829
$95,179,292
$227,587,671
$218,698,466
$321,497,500
$313,877,758
The total net assets of the City of Monroe were $321,497,500 as of June 30, 2010. Of the City's total net
assets $214,564,835 (66 %) reflects its investment in capital assets (e.g. land, buildings, machinery, and
equipment) less any related debt used to acquire those assets that is still outstanding. The City uses these
capital assets to provide services to citizens; consequently, these assets are not available for future
spending. Although the City's investment in its capital assets is reported net of the outstanding related
debt, the resources needed to repay that debt must be provided by other sources, since the capital assets
cannot be used to liquidate these liabilities.
An additional portion of the City's net assets ($254,874) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of $106,677,791 (34 %) is unrestricted.
These assets may be used at the City's discretion in meeting its ongoing obligations to citizens and
creditors.
The City's net assets have increased by $7,619,742 during the current fiscal year. The biggest part of this
increase was due to the construction in progress of the various bond related utility improvements in the
City's electric, natural gas, water and airport operations. Restricted reserves represent the accumulation
of funds from the state street aid allocation to be used for street maintenance. Unrestricted reserves
represent increases due to savings in anticipated expenses and actual revenue exceeding anticipated
revenue.
The following is a summary of the City's governmental and business -type activities for fiscal year 2010,
including revenues and expenses, with a comparison to the prior year. For more detail see the Statement
of Activities on page 16 -17. -
Revenues:
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues:
Property taxes
Other taxes
Grants and contributions not restricted to
City of Monroe's Changes in Net Assets
Figure 3
Govemmental Activities Business-type Activities
2010 2009 2010 2009
$5,630,582 $5,620,750
2,238,247 2,218,413
1,972,323 3,459,973
16,953,881 16,285,937
6,714,313 7,391,328
$89,719,118 $82,446,884
483,552 789,584
Total
2010 2009
$95,349,700 $88,067,634
2,238,247 2,218,413
2,455,875 4,249,457
16,953,881 16,285,937
6,714,313 7,391,328
specific grant programs
241,952
225,478
-
-
241,952
225,478
Other
934,426
995,167
1,656,520
3,008,423
2,590,946
4,003,590
Total revenues
34,685,724
36,196,946
91,859,190
86,244,891
126,544,914
122,441,837
Expenses:
General government
$4,951,760
$4,724,842
$ -
$ -
$4,951,760
$4,724,842
Transportation
5,666,866
5,441,377
5,666,866
5,441,377
Public safety
17,774,850
18,088,959
17,774,850
18,088,959
Culture and recreation
4,906,281
4,914,395
4,906,281
4,914,395
Economic and physical development
1,783,573
858,485
1,783,573
858,485
Interest in long-term debt
161,494
311,430
-
-
161,494
311,430
Water and sewer
-
-
11,520,115
11,543,398
11,520,115
11,543,398
Electrical
43,587,914
41,629,010
43,587,914
41,629,010
Natural Gas
17,584,631
16,866,784
17,584,631
16,866,784
Aquatics and Fitness Center
3,435,820
3,725,357
3,435,820
3,725,357
Stormwater
1,351,596
794,566
1,351,596
794,566
Solid waste
2,702,185
2,697,447
2,702,185
2,697,447
Airport
-
-
3,498,087
3,232,053
3,498,087
3,232,053
Total expenses
35,244,824
34,339,488
83,680,348
80,488,615
118,925,172
114,828,103
(Decrease) Increase in net assets before
transfers
(559,100)
1,857,458
8,178,842
5,756,276
7,619,742
7,613,734
Transfers
(710,363)
(907,609)
710,363
907,609
-
-
(Decrease) Increase in net assets
Net assets — beginning
Net assets — ending
(1,269,463) 949,849 8,889,205 6,663,885 7,619,742 7,613,734
95,179,292 94,229,443 218,698,466 212,034,581 313,877,758 306,264,024
$93,909,829 $95,179,292 $227,587,671 $218,698,466 $321,497,500 $313,877,758
Governmental activities — Governmental activities decreased the City of Monroe's net assets by
$1,269,463. Key elements of this net decrease are as follows:
• An increase in property taxes of 4% ($667,944), due primarily to an increase in the valuation and
resulting levy of personal property.
• Capital grants and contributions decreased by $1,487,550. This was due to $2,272,898 less
additions of infrastructure in FY 2010 than FY 2009. Infrastructure includes streets, curbs,
sidewalks and stormwater for several subdivisions, There was an increase in the Economic and
Physical Development function with the receipt of a $785,348 grant from the North Carolina
Rural Economic Development Center.
• A decrease of $677,015 or 10% was reported in other taxes due primarily to a $559,586 decrease
in collection for local option sales tax and a $108,351 decrease in collection for beer and wine
tax. The State General Assembly retained a higher level of the beer and wine tax distribution,
resulting in a decrease in revenue for the City of Monroe.
• An increase in expense in economic and physical development due to the conveyance of land to a
local industry and a pass-through grant to a local industry from the North Carolina Department of
Commerce.
Business-type activities — Business-type activities increased the City of Monroe's net assets by
$8,889,205 accounting for 116% of the total net growth in the government's net assets. Key elements of
this increase are as follows:
7
Charges for services increased in water and electric but decreased in natural gas due to
fluctuations in demand. A one-time increase of $6,000,000 in natural gas revenue was
recognized due to an agreement with PSNC for capacity. More information about this agreement
can be found in the notes to the financial statements on page 62.
A decrease in capital grants and contributions was due to less donated assets which is because of
a decrease in development activity.
A decrease in other revenues of $1,351,903 was due primarily to decreased investment interest
earnings.
A full year of expenses for the new state mandated storm water utility increased expenses.
Financial Analysis of the City’s Funds
As noted earlier, the City of Monroe uses fund accounting to ensure and demonstrate compliance with
finance-related legal requirements.
Governmental Funds – The focus of the City of Monroe’s governmental funds is to provide information
on near-term inflows, outflows, and balances of usable resources. Such information is useful in assessing
the City’s financing requirements. Specifically, unreserved fund balance can be a useful measure of a
government’s net resources available for spending at the end of the fiscal year.
At June 30, 2010, the governmental funds of City of Monroe reported a combined fund balance of
$21,353,112, which is a decrease of $1,534,138 from last year’s total of $22,887,250. Of the
governmental funds combined ending fund balances, $17,622,970 represents unreserved fund balance,
which is available for spending at the City’s discretion. The remainder of fund balance is reserved to
indicate that it is not available for spending, as it has already been committed for encumbrances, street
maintenance or it must be reserved in order to comply with North Carolina state statutes.
The general fund is the chief operating fund of the City of Monroe. As of June 30, 2010, the fund balance
in the General Fund was $19,625,584, an increase of $1,759,527 in comparison with the prior year. Of
the total fund balance in the General Fund, $15,613,450 (80%) was unreserved fund balance. As a
measure of the general fund’s liquidity, it may be useful to compare both unreserved fund balance and
total fund balance to total fund expenditures. Unreserved fund balance represents 60% of total general
fund expenditures, while total fund balance represents 75% of that same amount. This increase to fund
balance is due to savings from vacant positions due to a hiring freeze, early retirement and reduction in
force totaled approximately $868,000. Savings in operating expenses totaled approximately $1,543,000.
Another factor that contributed to the increase was the transfer of savings from capital projects and
incentive grants totaling $1,599,680.
The Other Government Funds which consist of the Capital Projects Fund, Occupancy Tax Projects Fund
and special revenue funds for Community Development, Downtown Monroe, Occupancy Tax, City Grant
Programs and State Grant Programs also impact the total fund balance for governmental funds. The
reason for the decrease of $4,258,568 in this category is due primarily to the construction of the
Winchester Children’s Center and the addition of a gymnasium at J Ray Shute Recreation Center. A
piece of land was conveyed in the City Grant Program Fund as an economic incentive grant to a local
industry. Another factor that contributed to the decrease was the return of savings from capital projects
and incentive grants to the general fund.
Proprietary Funds – The City of Monroe’s proprietary funds provide the same type of information found
in the government-wide statements but in more detail. The table below presents the unrestricted net assets
and the total growth in net assets for all proprietary funds.
8
Proprietary Funds are used to account for operations (a) that are financed and operated in a manner
similar to private business enterprises where the intent of the governing body is that the costs (expenses,
including depreciation) of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges; or (b) where the governing body has decided that
periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or other purposes. The City's
major proprietary funds are water and sewer, electric, natural gas and airport. Minor proprietary funds
include Aquatics and Fitness Center, Stormwater and Solid Waste Funds.
The Water and Sewer Fund accounts for the provision of potable water and sewer service to City and
non-City residents. All activities necessary to the provision of these services are accounted for in this
fund, including, but not limited to administration, plant and line maintenance. As of June 30, 2010, the
City of Monroe's water fund reported total net assets of $72,286,066, an increase of $1,098,927 in
comparison with the prior year. This increase is primarily due to an increase in operating income.
The Electric Fund accounts for the provision of electric service to City and non-City residents. All
activities necessary to the provision of these services are accounted for in this fund, including, but not
limited to administration, plant and line maintenance. As of June 30, 2010, the City of Monroe's electric
fund reported total net assets of $93,443,705, an increase of $621,632 in comparison with the prior year.
This increase is primarily due to an increase in operating income.
The Natural Gas Fund accounts for the provision of natural gas service to City and non-City residents.
All activities necessary to the provision of these services are accounted for in this fund, including, but not
limited to administration, plant and line maintenance. As of June 30, 2010, the City of Monroe's natural
gas fund reported total net assets of $38,466,204, an increase of $6,973,655 in comparison with the prior
year. This increase is due to an increase in capital assets and a new long-term note receivable from
Public Service Company of North Carolina (PSNC). This receivable is for capacity charges that are
payable over a six year period: For more information on this joint venture, please seepage 62.
The Airport Fund accounts for the operation of the Charlotte-Monroe Executive Airport. As of June 30,
2010, the City of Monroe's airport fund reported total net assets of $13,985,433, a decrease of $791,393
in comparison with the prior year. This decrease is because of an operating loss resulting from reduced
user fees due to the current economic downturn. The airport is currently undergoing a major renovation
and expansion.
General Fund Budgetary Highlights
During the fiscal year, the City of Monroe revised the budget on several occasions. Generally, budget
amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used
to prepare the original budget ordinance once exact information is available; 2) amendments made to
recognize new funding amounts from external sources, such as federal and State grants; and, 3) increases
in appropriations that become necessary to maintain services.
VIIJ
Unrestricted Net Assets
Growth in Net Assets
2010
2009
2010
2009
Water and Sewer
$21,869,547
$21,184,478
$1,098,927
$1,997,668
Electric
49,205,975
48,924,656
621,632
(1,735,811)
Natural Gas
17,196,135
19,064,633
6,973,655
6,426,097
Airport
(4,424,894)
522,031
(791,393)
(555,973)
Aquatics and Fitness Center
1,838,011
1,562,001
513,695
194,777
Stormwater
368,472
79,668
413,803
130,316
Solid Waste
357,810
216,057
141,753
216,057
Proprietary Funds are used to account for operations (a) that are financed and operated in a manner
similar to private business enterprises where the intent of the governing body is that the costs (expenses,
including depreciation) of providing goods or services to the general public on a continuing basis be
financed or recovered primarily through user charges; or (b) where the governing body has decided that
periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for
capital maintenance, public policy, management control, accountability, or other purposes. The City's
major proprietary funds are water and sewer, electric, natural gas and airport. Minor proprietary funds
include Aquatics and Fitness Center, Stormwater and Solid Waste Funds.
The Water and Sewer Fund accounts for the provision of potable water and sewer service to City and
non-City residents. All activities necessary to the provision of these services are accounted for in this
fund, including, but not limited to administration, plant and line maintenance. As of June 30, 2010, the
City of Monroe's water fund reported total net assets of $72,286,066, an increase of $1,098,927 in
comparison with the prior year. This increase is primarily due to an increase in operating income.
The Electric Fund accounts for the provision of electric service to City and non-City residents. All
activities necessary to the provision of these services are accounted for in this fund, including, but not
limited to administration, plant and line maintenance. As of June 30, 2010, the City of Monroe's electric
fund reported total net assets of $93,443,705, an increase of $621,632 in comparison with the prior year.
This increase is primarily due to an increase in operating income.
The Natural Gas Fund accounts for the provision of natural gas service to City and non-City residents.
All activities necessary to the provision of these services are accounted for in this fund, including, but not
limited to administration, plant and line maintenance. As of June 30, 2010, the City of Monroe's natural
gas fund reported total net assets of $38,466,204, an increase of $6,973,655 in comparison with the prior
year. This increase is due to an increase in capital assets and a new long-term note receivable from
Public Service Company of North Carolina (PSNC). This receivable is for capacity charges that are
payable over a six year period: For more information on this joint venture, please seepage 62.
The Airport Fund accounts for the operation of the Charlotte-Monroe Executive Airport. As of June 30,
2010, the City of Monroe's airport fund reported total net assets of $13,985,433, a decrease of $791,393
in comparison with the prior year. This decrease is because of an operating loss resulting from reduced
user fees due to the current economic downturn. The airport is currently undergoing a major renovation
and expansion.
General Fund Budgetary Highlights
During the fiscal year, the City of Monroe revised the budget on several occasions. Generally, budget
amendments fall into one of three categories: 1) amendments made to adjust the estimates that are used
to prepare the original budget ordinance once exact information is available; 2) amendments made to
recognize new funding amounts from external sources, such as federal and State grants; and, 3) increases
in appropriations that become necessary to maintain services.
VIIJ
Total amendments to the General Fund increased expenditures by $932,507 or 3.3%. The key
differences between the original budget and the final amended budget can be briefly summarized as
follows:
• Funds were appropriated for prior year encumbrances in the amount of $191,806 and unspent
appropriations (various grants and police equitable sharing) in the amount of $546,757.
• Funds were appropriated for grants and donations received in the amount of $218,021.
Revenues exceeded final budget by $551,032.
Expenditures decreased from the prior year. This is due to measures taken to preserve the City's fund
balance. Expenditures were 91% of the final amended expenditure budget. Expenditures were held $2.6
million below final budget amounts. Some of the key differences are as follows:
• $1,542,558 in savings for operating expenses was realized due to a reduction in travel and
deferring professional and technical services.
• Salary and employee benefits expenditures across all General Fund functions were $867,781
below the final budget primarily due to a hiring freeze, early retirement and reduction in force.
Capital Assets
The following is a summary of the City of Monroe's capital assets, net of depreciation for governmental
and business-type activities for the current year with a comparison to the prior year. Additional
information on the City of Monroe's capital assets can be found in Note W.A.5 on pages 42 - 47 of this
report.
Land
Buildings and improvements
Equipment
Vehicles and motorized
City of Monroe's Capital Assets
(Net of Depreciation)
Figure 4
Governmental Activities
2010
2009
$4,676,942
$4,374,393
12,568,101
10,420,493
1,555,085
1,644,409
Business-type Activities
2010 2009
$15,393,766 $13,730,862
29,013,338 29,649,000
4,079,507 4,135,490
Total
2010 2009
$20,070,708 $18,105,255
41,581,439 40,069,493
5,634,592 5,779,899
equipment
3,975,347
4,587,790
2,414,622
1,907,535
6,389,969
6,495,325
Other Intangibles
344,696
-
-
-
344,696
-
Infrastructure
57,289,776
58,212,884
100,889,358
93,043,385
158,179,134
151,256,269
Construction in progress
1,095,617
2,396,712
74,792,175
62,427,839
75,887,792
64,824,551
Total
$81,505,564
$81,636,681
$226,582,766
$204,894,111
$308,088,330
$286,530,792
The City of Monroe's investment in capital assets for its governmental and business—type activities as of
June 30, 2010, totals $308,088,330 (net of accumulated depreciation). These assets include buildings,
roads and bridges, land, enterprise systems infrastructure, machinery and equipment, park facilities, and
vehicles. The total increase in the City's investment in capital assets for the current fiscal year was
$21,557,538 (7.5%). Major capital asset events during the year included the following:
• Completion of Winchester Day Care
• Park improvements at Winchester, Dickerson, Sutton, Sunset, Parks Williams and J Ray Shute
Parks
• Completion of the new Upper Zone water mains
• New elevated storage tank on Rocky River Road
• New force main from Lake Lee to Lake Twitty
• New portable pump station at Lake Lee
• New electric transformer at Camp Sutton
IL
Purchase ofunew Energy Services Building
Land acquisition for airport expansion
General Fund infrastructure including streets, curbs, sidewalks and stormwater
Construction in progress totaling $75,Q87,792 makes upmsignificant portion of the City's capital ummcts
and accounts for the largest part nf the increase from last year. Funding for various projects was received
iu fiscal year 2008 and 2OO9 which are still under construction. These projects inu|odeHhoCoUon'ing:
• Water — construction of elevated water storage tank and installation of water transmission nnxus.
• Electric — construction of a substation and construction of approximately 12.8 miles or
transmission loop around the City.
• Natural Ooo— land acquisition and construction of an b" natural &uo line loop around the City,
and construction o[ approximately 43 nui|ce of natural gas pipeline to connect the City's system
directly to the transcontinental pipeline. As of June 30, $41.8 million had been spent on this
pipeline project. The pipeline was placed in service in April, 2010, but still had significant items
tobe completed before the project isOnu|ized.
• Airport — construction o[Go|dmninc Road, extension of runway 5.
Debt Administration
The following isa summary of the City's debt for governmental and activity for
the current year with a comparison to the prior year. Additional in1bnnuhoo on kmg-benn debt can be
found in note W.B.7 beginning on page 55 of this report.
Install purchase obligations
General obligation bonds
Revenue bonds
State revolving loans
Certificates vrparticipation
Total
City wKMonroe,mOutstanding Debt
General Obligation and Revenue Bonds
Figure 5
Governmental Activities
2010 2009
$8,209,458 $9,656,258
$8,209,458 $9,656,258
Activities
2010 2
2009
$3,625,941 $
$3,345,606
- |
|1o,0on
51,320,000 5
53.185,000
Total
2009
$11,835,399 $13,001,864
- |4o,0oo
51,320,000 58`185,000
4,277,753 5,104,832
32,665,000 32,665,000
$100,098,152 $104,096,696
As of June 30L 2010, the City of Monroe had total debt outstanding or $100.090,152. The City has
completely satisfied all nutabmdiu8 general obligation debt. The City's bonded debt $51,320,000,
represents bonds yeuonrd hv the combined revenues of the major business-type funds vvbioh ioo|ndc
water and *cvvcr, electric, natural gum and airport. The oeciifiootcx of participation were issued to fund
the construction of uutorui gum pipeline. The City's total debt, net ofretirements, decreased $3,998'544
during the Umou\ year. The primary elements of this change were issuance of an installment financing
totaling $1,697,000 for equipment purchases and $5,695,544 in debt retirements.
The City of Monroe has an A2 bond rating from `ulnvestor Service and AA- rating from Standard
and Poor`y Corporation. These bond ratings are indications of the sound financial condition and stable
outlook of the City of Monroe.
North Carolina General Statutes limit the amount of general obligation debt that u unit of government can
ieeno to eight percent of the total assessed value of taxable property located vvdbiu that government's
boundaries. The legal debt margin for the City of Monroe is $227,418,755.
Economic Factors and Next Year's Budgets and Rates
The following key economic indicators reflect the growth and prosperity of the City.
• The uuuua| unemployment rate for City of Monroe has Dd|on to 9.0%' which is u decrease of
0.4% from |um1 year. This compares favorably to Union County's ,utc o79.596 and the State's
average rate of9.596.
• The taxable value of commercial and zrmideodu) property iuurcumod 4.2% from fixoalyear 2OO9
0o fiscal year 2O)O.
• Population increased 2.396 from 37,28Oin2UOg1o30`l20in20)O.
Monroe is experiencing the same downturn in the economy as our industrial, commercial and residential
sectors. Revenues have declined and yet operating expenses have continued to rise as the costs of goods
and services to the City have increased.
Governmental Activities — The[ity raised the property tax rate from .495 to.555 for fiscal year 2011.
Expenditures were budgeted to remain at fiscal year 2010 levels. Projects and capital purchases were
deferred or cut in many areas.
Business-type Activities — Wate,und sewer rates were increased by 4.5% to plan for the significant
anticipated cost of future capital projects and necessary system improvements. The Water and Sewer
Enterprise Fund will he making application for u state revolving |ouu in FY 2011 in the amount of
approximately $13 nni)linu for the 8tc`pad Creek Sewer Upgrade Project. Electric rates were also
increased by 5% to cover the increased cost of wholesale power. /\ $1.25 per month increase for solid
waste collection was approved for mmna|\ buuiocoo accounts and all o1bs, ononoos»oiu| accounts were
increased an average of 4.75% to have revenues meet costs of servicing this customer class. Residential
solid waste, natural gas and n1oouvvo1er rates remained the same.
Requests for Information
This report is designed to provide an overview of the City's finances for those with an interest in this
urea. Questions concerning any of the information found in this report or requests for additional
information should be directed to the City of Monroe Department of Finance at 300 West Crowell Street,
Monroe, North Carolina, 20112` or visit the City`svvmhsitc at www.monroenc.or .
0FN
Basic Financial Statements
The Basic Financial Statements provide a summary overview of the
financial position of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and
the aggregate remaining fund information at June 30, and the respective
changes in financial position and cash flows, where appropriate for the
year then ended.
• Government-Wide Financial Statements
• Fund Financial Statements
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
• Notes to Financial Statements
• Required Supplemental Information
CITY
OF
�rIONROE
a heritage of progress
EXHIBIT I
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF NET ASSETS
June 30, 2010
Primary Government Component Units
Monroe
Tourism
Governmental Business -type City of Monroe Development
Activities Activities Total ABC Board Authority
ASSETS
Current assets:
Cash and cash equivalents
$ 21,405,595 $
73,538,957
$ 94,944,552 $
416,945 $
179,161
Taxes receivable
1,097,005
-
1,097,005
-
-
Accounts receivable
426,664
5,027,998
5,454,662
-
27,749
Note receivable
-
1,517,475
1,517,475
-
-
Internal balances
92,113
(92,113)
-
-
Due from other governments
2,665,985
-
2,665,985
-
-
Due from component units
75,000
-
75,000
-
-
Inventories
316,593
4,099,281
4,415,874
211,714
-
Prepaid expenses
288,319
7,092
295,411
21,119
Loans receivable (net)
20,563
-
20,563
-
-
Total current assets
26,387,837
84,098,690
110,486,527
649,778
206,910
Restricted assets:
Cash and cash equivalents
281,374
6,981,914
7,263,288
-
-
Noncurrent assets:
Note receivable
-
7,340,631
7,340,631
-
-
Due from (to) other funds
(1,256,422)
1,256,422
-
-
-
Deferred charges
-
1,329,623
1,329,623
-
-
Prepaid pension obligation
129,330
-
129,330
-
-
Capital assets
Land, non - depreciable improvements,
and construction in progress
5,772,559
90,185,941
95,958,500
317,013
-
Other capital assets, net of depreciation
75,733,005
136,396,825
212,129,830
744,590
-
Total capital assets
81,505,564
226,582,766
308,088,330
1,061,603
-
Total noncurrent assets
80,378,472
236,509,442
316,887,914
1,061,603
-
Total assets
107,047,683
327,590,046
434,637,729
1,711,381
206,910
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
830,951
6,509,296
7,340,247
205,483
300
Unearned revenue
517,602
26,175
543,777
-
-
Due to primary government
-
-
-
56,500
18,500
Current portion of long -term liabilities
2,767,359
4,752,620
7,519,979
-
-
Payable from restricted assets
-
576,973
576,973
-
-
Property claims liability
6,451
-
6,451
-
-
Workers compensation claims
13,481
-
13,481
-
-
Health care benefits claims
419,985
-
419,985
-
-
Long -term liabilities:
OPEB liability
1,601,658
668,342
2,270,000
-
-
Due in more than one year
6,980,367
87,468,969
94,449,336
-
-
Totalliabilities
13,137,854
100,002,375
113,140,229
261,983
18,800
NET ASSETS
Invested in capital assets, net of
related debt
73,296,107
141,268,728
214,564,835
1,061,603
-
Restricted for:
Streets
254,874
-
254,874
-
-
Other purposes
-
-
-
146,228
-
Unrestricted
20,358,848
86,318,943
106,677,791
241,567
188,110
Total net assets
$ 93,909,829 $
227,587,671
$ 321,497,500 $
1,449,398 $
188,110
The notes to the financial statements are an integral part of this statement.
15
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2010
Functions/Programs
Expenses
Primary government:
Governmental activities:
General government
4,951,760
Transportation
5,666,866
Public safety
17,774,850
Culture and recreation
4,906,281
Economic and physical development
1,783,573
Interest on long-term debt
161,494
Total governmental activities
Business-type activities:
Water and sewer
Electric
Natural gas
Aquatics and Fitness Center
Stormwater
Solid waste
Airport
Total business-type activities
Total primary government
Component units:
ABC Board
Tourism Development Authority
Total component units
35,244,824
11,520,115
43,587,914
17,584,631
3,435,820
1,351,596
2,702,185
3,498,087
83,680,348
Program Revenues
Operating
Grants Capital Grants
Charges for and and
Services Contributions Contributions
$ 1,979,108 $ - $ -
235,796 985,763 1,186,975
2,212,839 732,298 -
1,194,399 194,684 -
8,440 325,502 785,348
5,630,582 2,238,247 1,972,323
12,365,114 - -
43,088,656 -
24,251,031 -
3,907,011 -
1,775,688 -
2,839,014 - -
1,492,604 - 483,552
89,719,118 - 483,552
$ 118,925,172 $ 95,349,700 $ 2,238,247 $ 2,455,875
$ 4,876,619 $ 4,936,353 $ - $
295,226 - 285,119
$ 5,171,845 $ 4,936,353 285,119 $
General revenues:
Taxes:
Property taxes, levied for general purpose
Local option sales tax
Utility taxes
Other taxes
Grants and contributions not restricted to specific programs
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
The notes to theft"nancial statements are an integral part of this statement.
16
EXHIBIT 2
Net (Expense) Revenue and ChanEes in Net Assets
Primary Government Component Units
Monroe
Tourism
Governmental Business -type City of Monroe Development
Activities Activities Total ABC Board Authority
$ (2,972,652) $ - $ (2,972,652) $ - $ -
(3,258,332) - (3,258,332) - -
(14,829,713) - (14,829,713) - -
(3,517,198) - (3,517,198) - -
(664,283) - (664,283) - -
(161,494) - (161,494) - -
(25,403,672} - (25,403,672) - -
- 844,999
- (499,258)
- 6,666,400
- 471,191
- 424,092
- 136,829
- (1,521,931)
6,522,322
$ (25,403,672) $ 6,522,322
844,999 -
(499,258) -
6,666,400 -
471,191 -
424,092 -
136,829 -
(1,521,931} -
6,522,322 -
$ (18,881,350) $ -
- $ 59,734 $ -
- (10,107)
59,734 (10,107)
16,953,881
-
16,953,881
-
-
3,536,581
-
3,536,581
-
-
1,432,412
-
1,432,412
-
-
1,745,320
-
1,745,320
-
-
241,952
-
241,952
-
-
272,523
970,794
1,243,317
2,019
374
565,407
394,869
960,276
-
799
96,496
290,857
387,353
-
-
(710,363)
710,363
-
-
-
24,134,209
2,366,883
26,501,092
2,019
1,173
(1,269,463)
8,889,205
7,619,742
61,753
(8,934)
95,179,292
218,698,466
313,877,758
1,387,645
197,044
$ 93,909,829 $
227,587,671
$ 321,497,500 $
1,449,398 $
188,110
17
CITY OF MONROE, NORTH CAROLINA
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2010
ASSETS
Cash and cash equivalents
Receivables:
Taxes
Accounts
Due from other governments
Due from component unit
Inventories
Prepaid expenses
Loans receivable (net)
Cash and cash equivalents - restricted
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and accrued liabilities
Deferred revenue
Unearned revenue
Total liabilities
Fund balances:
Reserved for:
Encumbrances /unspent appropriations
State statute
Streets - Powell bill
Unreserved for General Fund:
Designated for subsequent year's expenditures
Undesignated
Unreserved for reported in:
Special Revenue Funds
Capital Projects Funds
Total fund balances
Total liabilities and fund balances
General
$ 17,138,566 $
Other
Governmental
Funds
EXHIBIT 3
Total
Governmental
Funds
1,854,119 $ 18,992,685
1,063,304
33,701
1,097,005
306,363
2,008
308,371
2,482,802
183,183
2,665,985
56,500
18,500
75,000
316,593
-
316,593
197,817
-
197,817
-
20,563
20,563
281,374
-
281,374
$ 21,843,319 $ 2,112,074 $ 23,955,393
$ 500,671 $
1,199,462
517,602
330,282 $ 830,953
54,264 1,253,726
- 517,602
2,217,735 384,546 2,602,281
533,343
28,727
562,070
3,223,917
203,691
3,427,608
254,874
-
254,874
1,834,567
1,398,376
3,232,943
1.3,778,883
-
13,778,883
-
210,644
210,644
-
(113,910)
(113,910)
19,625,584
1,727,528
21,353,112
$ 21,843,319 $ 2,112,074 $ 23,955,393
The notes to the financial statements are an integral part of this statement.
18
EXHIBIT 4
CITY OF MONROE, NORTH CAROLINA
RECONCILIATION OF GOItERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET ASSETS
June 30, 2010
Amounts reported for governmental activities in the
statement of net assets are different because:
Fund balances - total governmental funds (Exhibit 3) $ 21,353,112
Capital assets used in governmental activities are not
financial resources and therefore are not reported in the funds.
Gross capital assets at historical cost $ 130,455,917
Accumulated depreciation (48,950,353) 81,505,564
Other long -term assets are not available to pay for current period
expenditures and therefore are deferred in the funds.
Prepaid pension obligation 129,330
Internal service funds are used by management to charge the costs of health and dental insurance to
individual funds. The current assets and liabilities of the internal service fund are included in governmental
activities in the statement of net assets. 82,571
Internal service funds are used by management to charge the costs of workers' compensation to
individual funds. The current assets and liabilities of the internal service fund are included in governmental
activities in the statement of net assets. 1,718,353
Internal service funds are used by management to charge the costs of property and liabiltiy insurance to
individual funds. The current assets and liabilities of the internal service fund are included in governmental
activities in the statement of net assets. 380,868
Internal balance due from Business Type Activities to Governmental Activities, 92,113
Liabilities for earned but deferred revenues in fund statements. 1,253,726
Note payable to electric fund (1,256,424)
Long -term liabilities are not due and payable in the current period
and therefore are not reported in the funds (Note II.A.). (11,349,384)
Net assets of governmental activities (Exhibit 1) $ 93,909,829
The notes to the financial statements are an integral part of this statement.
K
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES -- GOVERNMENTAL FUNDS
For the Year Ended June 34, 2 010
REVENUES
Ad valorem taxes
Other taxes and licenses
Unrestricted intergovernmental
Restricted intergovernmental
Program income
Sales and services
Investment earnings
Miscellaneous
Total revenues
EXPENDITURES
Current:
General government
Transportation
Public safety
Culture and recreation
Economic and physical development
Capital outlay
Debt service:
Principal retirement
Interest and other charges
Repayment of advance from other funds
Total expenditures
Deficiency of revenues under expenditures
OTHER FINANCING SOURCES (USES)
Transfers from other funds
Transfers to other funds
Installment purchase obligations issued
Total other financing sources (uses)
Net change in fund balances
Fund balance, beginning, as previously stated
Reclassification of Occupancy Tax Project Fund
Fund balance, beginning, restated
Fund balance, ending
EXHIBIT S
Other Total
Governmental Governmental
General Funds Funds
$ 16,865,653 $
43,005 $
16,908,658
579,792
293,937
873,729
6,043,724
-
6,043,724
2,575,711
698,762
3,274,473
-
7,169
7,169
1,740,352
-
1,740,352
268,436
4,087
272,523
546,757
1,180
547,937
28,620,425
1,048,140
29,668,565
3,485,213
-
3,485,213
2,024,747
-
2,024,747
14,615,853
-
14,615,853
3,757,285
-
3,757,285
-
1,909,075
1,909,075
-
2,784,748
2,784,748
1,921,661
-
1,921,661
337,106
-
337,106
131,477
-
131,477
26,273,342
4,693,823
30,967,165
2,347,083
(3,645,683)
(1,298,600)
1,093,827
454,042
1,547, 869
(1,191,304)
(1,066,927)
(2,258,231)
474,824
-
474,824
377,347
(612,885)
(235,538)
2,724,430
(4,258,568)
(1,534,138)
17,866,057
5,986,096
23,852,153
(964,903)
-
(964,903)
16,901,154
5,986,096
22,887,250
$ 19,625,584 $
1,727,528 $
21,353,112
The notes to the financial statements are an integral part of this statement.
EXHIBIT
CITY OF MOMROE, NORTH CAROLINA
RECO8CILIA TION OF THE STA TEMENT OF REVENUES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF A C%JVITIES
For the Year Ended June J0,2010
Amounts reported for governmental activities in the statement ofactivities
are different because:
Net change in fund balances - total governmental funds (Exhibit 5)
$ (),534,1]8)
Governmental funds report capital outlays as expenditures. However,
io the statement nf activities the cost o[ those assets ixallocated
over their estimated useful lives and reported as depreciation expense.
This im the amount hy which depreciation exceeded capital outlays
iu the current period (Note D.8.).
(08`468)
Governmental funds report the proceeds from the sale nf capital assets
(824,842)
usuo increase in financial resources. Tu the statement of activities, only
the gain (|naa)oo the sale of capital assets im reported. Thus, the change
io net assets differs from the cbou-oin fund balance by the net book
(295`540)
value of the capital assets sold.
(32`648)
Revenues in the statement of activities that do not provide current
financial resources are not reported um revenues io the funds.
(126`006)
Change in deferred revenue
73`182
The issuance of long-term debt provides current financial resources
to governmental funds, while the repayment nf the principal oflong-term
debt consumes the current fiououio|resources n[ governmental funds.
Neither transaction has any effect on net assets io the gnvonnnont-nidc
statements. Also, governmental fl/ndw report the effect of issuance costs,
premiums, discounts and similar items when debt ix first issued, whereas
these amounts are deferred and amortized in the statement nractivities.
This amount ix the net effect of these differences iu the treatment of
long-term debt and related items (Note lI.8.). 1,446`800
Principal repayment of advance from Electric Fond 82,086
Some expenses reported in the statement of activities dnnot require
the use of current financial resources and, therefore, are not reported
as expenditures in governmental funds.
Compensated absences (38'726)
Net pension obligation (2,793)
(lPEB|iobUity _-(783^323)
(824,842)
The internal service fund, determined to be governmental fund type, is used
by management to charge the costs, net nf investment earnings, o[health
and dental insurance program.
(295`540)
The internal service fund, determined tohogovernmental fund type, is used
by management tn charge the costs, net of investment earnings, ofworkers'
compensation program.
(126`006)
The internal service fund, determined to be governmental fund type, is used
by management to charge the ooatw'ootofinvestment earnings, ofproperty
and liability insurance program,
40,201
Change in net assets of governmental activities (Exhibit 2) $
The notes to thnfinanoalutatements are amintegra/partof this statement
21
CITY
OF
�rIONROE
a heritage of progress
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES -- BUDGET AND ACTUAL --
GENERAL FUND
For the Year Ended June 30, 2010
EXHIBIT 7
Variance with
FUND BALANCE APPROPRIATED
Net change in fund balance
Fund balance, beginning, as previously stated
Reclassification of Occupancy Tax Project Fund - See Note IX
Fund balance, beginning, restated
Fund balance, ending
2,288,092 562,936
The notes to the financial statements are an integral part of'this statement.
9J
(562,936)
2,724,430 $ 2,724,430
17,866,057
(964,903)
16,901,154
$ 19,625,584
Budgeted Amounts
Final Budget -
Actual
Positive
Original
Final
Amounts
(Negative)
REVENUES
Ad valorem taxes
$ 15,885,000
$ 15,885,000
$ 16,865,653
$ 980,653
Other taxes and licenses
583,000
583,000
579,792
(3,208)
Unrestricted intergovernmental
6,613,500
6,613,500
6,043,724
(569,776)
Restricted intergovernmental
1,166,360
2,375,509
2,575,711
200,202
Sales and services
1,766,700
1,771,700
1,740,352
(31,348)
Investment earnings
400,000
400,000
268,436
(131,564)
Miscellaneous
529,000
440,684
546,757
106,073
Total revenues
26,943,560
28,069,393
28,620,425
551,032
EXPENDITURES
Current:
General government
4,112,032
4,295,382
3,485,213
810,169
Transportation
2,431,178
2,444,809
2,024,747
420,062
Public safety
14,845,294
15,523,802
14,615,853
907,949
Culture and recreation
4,122,154
4,179,172
3,757,285
421,887
Debt service:
Principal retirement
1,958,208
1,958,208
1,921,661
36,547
Interest and other charges
400,000
400,000
337,106
62,894
Repayment of advance from other funds
131,485
131,485
131,477
8
Total expenditures
28,000,351
28,932,858
26,273,342
2,659,516
Revenues over (under) expenditures
(1,056,791)
(863,465)
2,347,083
3,210,548
OTHER FINANCING SOURCES (USES)
Transfers from other funds
(412,000)
1,134,830
1,093,827
(41,003)
Transfers to other funds
(1,371,301)
(1,386,301)
(1,191,304)
194,997
Installment purchase obligations issued
552,000
552,000
474,824
(77,176)
Total other financing sources (uses)
(1,231,301)
300,529
377,347
76,818
FUND BALANCE APPROPRIATED
Net change in fund balance
Fund balance, beginning, as previously stated
Reclassification of Occupancy Tax Project Fund - See Note IX
Fund balance, beginning, restated
Fund balance, ending
2,288,092 562,936
The notes to the financial statements are an integral part of'this statement.
9J
(562,936)
2,724,430 $ 2,724,430
17,866,057
(964,903)
16,901,154
$ 19,625,584
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2010
Major Enterprise Funds
Water
and Sewer Electric Natural Gas Airport
ASSETS
Current assets:
Cash and cash equivalents
$ 21,430,678
$ 28,890,733
$ 16,647,504
$ 3,657,965
Accounts receivable
903,156
2,952,256
820,774
40,901
Note receivable
-
647,644
869,831
-
Prepaid expenses
4,736
1,008
496
210
Inventories
275,045
3,555,663
185,383
75,301
Total current assets
22,613,615
36,047,304
18,523,988
3,774,377
Noncurrent assets:
Restricted assets:
Cash and cash equivalents:
Unspent bond proceeds
149
350,200
72,989
5,981,603
Customer deposits
77,265
352,614
147,094
-
Bond issuance costs
91,576
385,027
719,619
133,401
Due from other funds
-
14,873,101
-
-
Long -term note receivable
-
2,307,825
5,032,806
-
Capital assets:
Land and other non- depreciable assets
1,968,675
25,806,133
44,711,783
16,773,756
Other capital assets, net of depreciation
63,370,308
43,327,892
13,666,342
8,527,094
Capital assets (net)
65,338,983
69,134,025
58,378,125
25,300,850
Total noncurrent assets
65,507,973
87,402,792
64,350,633
31,415,854
Total assets
88,121,588
123,450,096
82,874,621
35,190,231
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities
312,790
4,134,292
1,062,508
705,468
Unearned revenue
-
14,106
-
-
Compensated absences
156,909
91,372
29,215
10,289
Installment purchase obligations
140,084
310,393
74,455
76,796
Certificates of participation
-
-
588,452
-
Revenue bonds payable
502,108
780,745
183,318
470,000
State revolving loans payable
827,077
-
-
-
Total current liabilities
1,938,968
5,330,908
1,937,948
1,262,553
Liabilities payable from restricted assets:
Customer deposits
77,265
352,614
147,094
-
Noncurrent liabilities:
Due to other funds
-
-
5,911,644
7,558,943
Compensated absences
77,282
45,005
14,388
5,068
Installment purchase obligations
158,251
1,031,624
187,308
150,330
Certificates of participation - net of unamortized discounts
-
-
31,747,417
-
Revenue bonds payable - net of deferred amount on refunding
and unamortized premium
9,844,417
23,123,733
4,400,095
12,175,000
State revolving loans payable
3,450,676
-
-
-
Other postemployment benefits payable
288,663
122,507
62,523
52,904
Total noncurrent liabilities
13,896,554
24,675,483
42,470,469
19,942,245
Total liabilities
15,835,522
30,006,391
44,408,417
21,204,798
NET ASSETS
Invested in capital assets, net of related debt
50,416,519
44,237,730
21,270,069
18,410,327
Unrestricted
21,869,547
49,205,975
17,196,135
(4,424,894)
Total net assets
$ 72,286,066
$ 93,443,705
$ 38,466,204
$ 13,985,433
Adjustment to reflect the consolidation of internal service fund activities related
to enterprise funds
Net assets of business -type activities
The notes to the financial statements are an integral part of this statement
24
EXHIBIT 8
-
Nonmajor
-
6,404,941
Governmental
-
Enterprise
-
576,973
Activities -
-
Funds
-
1,329,623
Internal
Aquatics and
-
-
14,873,101
Service
Fitness Center
Stormwater
Solid Waste
Total
Funds
$ 2,018,566
515,446
378,065 $
73,538,957
$2,412,913
-
111,260
199,651
5,027,998
118,294
-
-
-
1,517,475
-
211
373
58
7,092
90,502
7,889
-
-
4,099,281
-
2,026,666
627,079
577,774
84,190,803
2,621,709
-
-
-
6,404,941
-
-
-
-
576,973
-
-
-
-
1,329,623
-
-
-
-
14,873,101
-
-
-
-
7,340,631
-
925,594
-
-
90,185,941
-
7,170,609
334,580
-
136,396,825
-
8,096,203
334,580
-
226,582,766
-
8,096,203
334,580
-
257,108,035
-
10,122,869
961,659
577,774
341,298,838
2,621,709
40,229
34,045
219,964
6,509,296
439,917
12,069
-
-
26,175
-
25,331
23,635
-
336,751
-
424,369
38,072
-
1,064,169
-
-
-
-
588,452
-
-
-
-
1,936,171
-
-
-
-
827,077
-
501,998
95,752
219,964
11,288,091
439,917
-
-
-
576,973
-
-
146,092
-
13,616,679
-
12,476
11,640
-
165,859
-
913,398
120,861
-
2,561,772
-
-
-
-
31,747,417
-
-
-
-
49,543,245
-
-
-
-
3,450,676
-
98,550
43,195
-
668,342
-
1,024,424
321,788
-
102,330,963
-
1,526,422
417,540
219,964
113,619,054
439,917
6,758,436
175,647
-
141,268,728
-
1,838,011
368,472
357,810
86,411,056
2,181,792
$ 8,596,447 $
544,119 $
357,810
227,679,784
$2,181,792
(92,113)
$ 227,587,671
P
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENSES, AND CHANCES IN
FUND NET ASSETS -- PROPRIETARY FUNDS
For the Year Ended June 30, 2010
OPERATING REVENUES
Charges for services
Interfund charges and employee contributions
Other operating revenues
Total operating revenues
OPERATING EXPENSES
Distribution systems
Water filter plant
Waste treatment plant
Electric power purchases
Natural gas purchases
Aquatics and Fitness Center operations
Airport operations
Stormwater operations
Solidwaste operations
Operating expenses
Health benefit claims and premiums
Property and liability claims and premiums
Depreciation and amortization
Total operating expenses
Operating income (loss)
NONOPERATING REVENUES (EXPENSES)
Major Enterprise Funds
Water
and Sewer Electric Natural Gas
Airport
$ 12,074,458 $
42,920,024 $
18,240,065 $
1,467,653
290,656
168,632
10,966
24,951
12,365,114
43,088,656
18,251,031
1,492,604
4,067,773 3,537,460 2,428,437
2,362,909 - - -
2,825,494 - - -
- 37,075,040 - -
- 12,493,870 -
2,124,844
139,206 63,704 30,672 25,953
1,830,233
2,081,017
517,033
648,843
11,225,615
42,757,221
15,470,012
2,799,640
1,139,499
331,435
2,781,019
(1,307,036)
Rate stabilization funds
-
60,360
-
-
Power agency funding
-
255,852
-
-
Gain (loss) on sale of capital assets
(35,931)
326,788
-
-
Availability fees
419,257
-
6,000,000
-
Other nonoperating revenues
1,106
386,140
7,623
-
Investment earnings
262,286
380,430
277,989
17,885
Interest and other charges
(687,290)
(1,1 19,373)
(2,092,976)
(723,057)
Total nonoperating revenues (expenses)
(40,572)
290,197
4,192,636
(705,172)
Income (loss) before contributions and transfers
1,098,927
621,632
6,973,655
(2,012,208)
CAPITAL GRANTS
-
-
-
483,552
TRANSFERS (TO) FROM OTHER FUNDS
-
-
-
737,263
Change in net assets
1,098,927
621,632
6,973,655
(791,393)
Total net assets, beginning
71,187,139
92,822,073
31,492,549
14,776,826
Total net assets, ending
$ 72,286,066 $
93,443,705 $
38,466,204 $
13,985,433
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds
Change in net assets of business -type activities
The notes to the financial statements are an integral part of this statement.
0
Nonmajor
Enterprise
Funds
Aquatics and
Fitness Center Stormwater Solid Waste Total
$ 3,763,120 $ 1,775,649 $ 2,839,014 $ 83,079,983
143,891 39 - 639,135
3,907,011 1,775,688 2,839,014 83,719,118
-
-
-
10,033,670
-
-
-
2,362,909
-
-
-
2,825,494
-
-
-
37,075,040
-
-
-
12,493,870
3,040,270
-
-
3,040,270
-
-
-
2,124,844
-
1,225,085
-
1,225,085
-
-
2,701,541
2,701,541
49,548
23,594
-
332,677
262,585
79,912
-
5,419,623
3,3 52,403
1,328,591
2,701,541
79,63 5,023
554,608
447,097
137,473
4,084,095
-
-
-
60,360
-
-
-
255,852
-
-
-
290,857
-
-
-
6,419,257
-
-
-
394,869
23,853
4,071
4,280
970,794
(64,766)
(10,465)
-
(4,697,927)
(40,913)
(6,394)
4,280
3,694,062
513,695
440,703
141,753
7,778,157
-
-
-
483,552
-
(26,900)
-
710,363
513,695
413,803
141,753
8,972,072
8,082,752
130,316
216,057
$ 8,596,447 $
544,119 $
357,810
(82,867)
$ 8,889,205
27
EXHIBIT 9
Governmental
Activities -
Internal
Service
Funds
5,602,718
280,663
5,883,381
245,858
5,584,603
522,008
(469,088)
4,787
4,787
(464,301)
(464,301)
2,646,093
$ 2,181,792
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended June 30, 2010
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Net advances (to) from other funds - (877,822) (88,356) 1,044,565
Transfers from other funds - - - 737,263
Net cash provided (used) by noneapital financing activitic
-
Major Enterprise Funds
(88,356)
1,781,828
Water
CASH FLOWS FROM CAPITAL AND RELATED
and Sewer
Electric
Natural Gas
Airport
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from issuance of long -term debt
Cash received from customers
$ 12,088,170
$ 43,342,069
$ 18,493,863
$ 1,468,659
Cash paid for goods and services
(6,134,872)
(38,756,715)
(18,234,738)
(1,599,684)
Cash paid to or on behalf of employees for services
(3,672,577)
(1,076,800)
(578,865)
(504,120)
Customer deposits received
44,993
230,689
88,623
-
Customer deposits returned
(56,665)
(286,533)
(126,389)
-
Other operating revenues
291,762
554,772
18,589
24,951
Net cash provided (used) by operating activities
2,560,811
4,007,482
(338,917)
(610,194)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Net advances (to) from other funds - (877,822) (88,356) 1,044,565
Transfers from other funds - - - 737,263
Net cash provided (used) by noneapital financing activitic
-
(877,822)
(88,356)
1,781,828
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from issuance of long -term debt
-
1,001,738
71,800
148,656
Proceeds from sale of capital assets
-
594,000
-
-
Acquisition and construction of capital assets
(884,176)
(3,413,642)
(16,293,015)
(6,494,272)
Note receivable collected (granted)
-
(1,796,567)
-
-
Capital contributions - Federal Grants
-
-
-
483,552
Principal paid on bond maturities and equipment obligation
(1,627,732)
(949,587)
(254,539)
(496,652)
Interest paid on bond maturities and equipment obligations
(681,495)
(1,118,097)
(2,087,722)
(685,465)
Rate stabilization funds
-
60,360
-
-
Power agency funds
-
255,852
-
-
Availability fees
419,257
-
97,363
-
Net cash used by capital and related financing activities
(2,774,146)
(5,365,943)
(18,466,113)
(7,044,181)
CASH FLOWS FROM INVESTING ACTIVITIES
Earnings on investments
262,286
380,430
277,989
17,885
Net increase (decrease) in cash and cash equivalents
48,951
(1,855,853)
(18,615,397)
(5,854,662)
Balances, beginning
21,459,141
31,449,400
35,482,984
15,494,230
Balances, ending $ 21,508,092 $ 29,593,547 $ 16,867,587 $ 9,639,568
Noncash investing, capital and financing activities:
The net book value of assets disposed in the Water and Sewer Fund amounted to $35,931.
During the year, the City issued a note receivable of $6,000,000 for availability fees, of which
$97,363 was collected in cash during the year.
The notes to the financial statements are an integral part of this statement.
W
EXHIBIT 10,
Continued
(26,900)
(26,900)
78,387
710,363
788,750
- 1,222,194 -
- 594,000 -
(92,385) (167,444) - (27,344,934) -
- (1,796,567) -
- 483,552 -
(407,886) (71,378) - (3,807,774) -
(64,765) (10,465) - (4,648,009) -
- 60,360 -
- 255,852 -
- 516,620 -
(565,036)
Nonmajor
-
(34,464,706)
Governmental
Enterprise
Activities -
4,071
Funds
970,793
4,787
Internal
Aquatics and
299,772
144,335
(25,549,416)
Service
Fitness Center
Stormwater
Solid Waste
Total
Funds
$ 3,763,120
$ 1,774,020
$ 2,828,998
$ 83,758,899
$ 5,603,269
(1,467,537)
(716,102)
(2,632,450)
(69,542,098)
(6,461,990)
(1,614,853)
(486,069)
(56,492)
(7,989,776)
-
-
-
-
364,305
-
-
-
-
(469,587)
-
143,891
39
-
1,034,004
1,180,125
824,621
571,888
140,056
7,155,747
321,404
(26,900)
(26,900)
78,387
710,363
788,750
- 1,222,194 -
- 594,000 -
(92,385) (167,444) - (27,344,934) -
- (1,796,567) -
- 483,552 -
(407,886) (71,378) - (3,807,774) -
(64,765) (10,465) - (4,648,009) -
- 60,360 -
- 255,852 -
- 516,620 -
(565,036)
(249,287)
-
(34,464,706)
-
23,853
4,071
4,279
970,793
4,787
283,438
299,772
144,335
(25,549,416)
326,191
1,735,128
215,674
233,730
106,070,287
2,086,722
$ 2,018,566 $
515,446 $
378,065
$ 80,520,871 $
2,412,913
M
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended June 30, 2414
Major Enterprise Funds
Water
and Sewer Electric Natural Gas Airport
Reconciliation of operating income to net cash provided
by operating activities:
Operating income (loss) $ 1,139,499 $ 331,435 $ 2,781,019 $ (1,307,036)
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization
Other revenues
Changes in assets and liabilities:
(Increase) decrease in accounts receivable
(Increase) decrease in inventories
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts payable and
accrued liabilities
Increase in customer deposits
Increase (decrease) in net OPEB liability
Increase(decrease)in compensated absences
Total adjustments
Net cash provided (used) by operating activities
1,830,233
2,081,017
517,033
648,843
1,106
386,140
7,623
-
13,712
422,045
253,798
1,006
28,219
119,941
10,942
(6,487)
(4,736)
(861)
(98)
(210)
(588,883)
645,578
(3,914,317)
12,379
(11,672)
(55,844)
(37,766)
-
139,206
63,704
30,672
25,953
14,127
14,327
12,177
15,358
1,421,312
3,676,047
(3,119,936)
696,842
$ 2,560,811
$ 4,007,482
$ (338,917) $
(610,194)
The notes to the financial statements are an integral part of this statement.
m
Nonmajor
Enterprise
Funds
Aquatics and
Fitness Center Stormwater Solid Waste Total
EXHIBIT 10
Governmental
Activities -
Internal
Service
Funds
$ 554,608 $ 447,097 $ 137,473 $ 4,084,095 $ (469,088)
262,585
79,912
-
5,419,623
-
-
-
-
394,869
-
-
(1,629)
(10,016)
678,916
979,946
2,043
-
-
154,658
-
(211)
(373)
(58)
(6,547)
-
(46,697)
13,652
12,657
(3,865,631)
(109,024)
-
-
-
(105,282)
-
49,548
23,594
-
332,677
-
2,745
9,635
-
68,369
-
270,013
124,791
2,583
3,071,652
790,492
$ 824,621 $
571,888 $
140,056 $
7,155,747 $
321,404
31
CITY OF MONROE, NORTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2010
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Monroe and its discretely presented component units conform to
generally accepted accounting principles as applicable tugovernments. The following is u summary ofthe
more significant accounting policies:
A. Reporting Entity
The City of Monroe isamunicipal corporation that is governed by an elected mayor and usix-member
council. As required by generally accepted accounting principles, these financial statements present the
City and its component units, legally separate entities for which the City is financially accountable. The
discretely presented component units presented ho|nvv are reported in a separate column in the City's
financial statements in order to emphasize that they are legally separate from the City.
City of Monroe ABC Board
The members of the City of Monroe ABC Board's governing board are appointed by the City. In addition,
the ABC Board ia required by State statute to distribute a portion o[ its surpluses 0m the General Fund ofthe
City. The ABC Board, which has a June 30 year end, is presented as if it were a proprietary fund (discrete
presentation). Complete financial statements for the /\8C Board may be obtained from the entity's
administrative offices u( City o[ Monroe ABC Board, 1771 Dickerson Boulevard, Monroe, North Carolina
City of Monroe Tourism Development Authority
The members of the City of Monroe Tourism Development Authority's governing board are appointed by
the City. In addition, the Authority is required by its charter to distribute 67% of its net tax revenues to the
General Fund of the City for the purpose of tourism development. The Tourism Development &Nbo6ty`
which has n June 30 year end, is presented as if it were u general government fund (discrete presentation).
Complete fiuuooio| oCo1umunta for the Authority may bc obtained from the cuhty`m administrative utDcco at
City of Monroe Tourism Development Authority, 300 West Crowell Street, Monroe, North Carolina 28112.
B. Basis o[Presentation
Statements: The statement of net assets and the statement of activities display information
about the primary government and its component units. These statements include the financial activities of
the overall government. Eliminations have been made to minimize the double counting of internal activities.
These statements distinguish 6ctpoon the governmental and business-type activities of the City.
Oovunomcn{a| activities generally are financed through taxes, intergovernmental n:vcnuco` and other non-
exchange tnmaw%inna. Business-type activities are Ooouood in whole oriu part bv fees charged {oexternal
parties.
The statement of activities presents o comparison between direct expuuacu and program revenues for the
different business-type activities of the City and for each function of the City's governmental activities.
0oxt expenses no those that are specifically mmooiorud with a program or function and, therefore, are
clearly idcobUnh|e to u particular function. [ndimooc expense u||oouziono that have been made in the funds
have been reversed for the statement ofactivities. Program revenues include (u) fees and charges paid by
the recipients of goods or services offered by the programs and (6) grants and contributions that are
restricted to meeting the operational or capital requirements ofu particular program. Revenues that are not
classified uu program revenues, including all taxes, are presented as general revenues.
Fund Financial Statements: The fund financial statements provide information about the City's funds.
Separate statements for each fund category —governmental andproprimary — are presented. The emphasis
of fund financial statements ison major governmental and enterprise funds, each displayed inaseparate
column. All remaining governmental and enterprise funds are aggregated andrcpouudnunomnojur8uodo.
32
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity nfthe fund. Exchange transactions are those in which each party
receives and gives up cow:nhu||y oqmd mduum. Nunoporatiogruvonues` such as subsidies result from non-
exchange transactions. Other nonoperating revenues are ancillary activities such as investment earnings.
The City reports the following major governmental fund:
General Fund. The General Fund is the general operating fund of the City. The General Fund accounts for
all financial resources except those that are required to be accounted for in another fund. The primary
revenue womcoo are ad valorem taxes, federal and State grants, and various other taxes and licenses. The
primary expenditures are for public safety, street maintenance and construction, moobu1ioo services, culture
and recreation activities, and general government services.
The City reports the following major enterprise funds:
Water and Sewer Fund. This fund |o used 0o account for the activities associated with the production,
distribution and transmission of potable water and the activities ooaoukgod with operating and maintaining
the City's sewer and surface drainage systems.
Electric Fund. This fund is used to account for the activities associated with the distribution and
transmission of electricity by the City to its users.
Natural Gas Fund. This fund is used to account for the activities associated with the distribution of natural
gas by the City to its users.
Aquatics and Fitness Center Fund. This fund is used to account for the activities associated with the
operation of the City's Aquatics and Fitness Cunter.
C. Measurement Focus and Basis nf Ac000udo&
In accordance with North Carolina General Statutes, all funds of the City are maintained during the year
using the mudifiodaccrual basis ufaccounting.
Government-wide and Proprietary Fund Financial Statements. The government-wide and proprietary
financial statements are reported using the economic resources measurement focus. The government-wide
and proprietary 8mud financial statements are reported using the accrual homim of accounting. Revenues are
recorded when cmmod and expenses are recorded at the time |iubiUdco are incurred, rceord|000 uf when the
related cash flows take place. Nnncxcbunge transactions, in which the City gives (or receives) value without
directly receiving (or giving) equal value in exchange, include property taxes, grants, and donations. On an
ocumo| bomix' revenue from property taxes is recognized in the fiocu| year for which the taxes are levied.
Revenue from grants and donations is recognized in the fiscal year in which all eligibility requirements have
been satisfied.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or
privileges provided, 3) operating grants and contributions, and 3) capital grants and contributions, including
special assessments. Internally dedicated resources are reported as general revenues rather than as program
revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating novooucm and expenses from nouopcnging items. Operating
n:vunuon and cxpouoco generally n:su|i from providing services and producing and delivering goods in
connection with u proprietary fund's principal ongoing operations. The principal operating revenues ofthe
City enterprise funds are charges tncustomers for sales and services. The City also recognizes uxoperating
revenue the portion of /eox intended to recover the cost of connecting new or reconnecting current
customers to the water and mower system. Operating expenses for enterprise funds and in1enon| service
funds include the oom1 of sales and services, administrative expenses and depreciation on capital uooe1o. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
33
Governmental Fund Financial Statements. Governmental funds are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are
recognized when measurable and available. Expenditures are recorded when the related fund liability is
incurred, except for principal and interest on general long -term debt, claims and judgments, and
compensated absences, which are recognized as expenditures to the extent they have matured. General
capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long -term
debt and acquisitions under capital leases are reported as other financing sources.
The City considers all revenues available if they are collected within 90 days after year -end, except for
property taxes. Ad valorem taxes receivable are not accrued as a revenue because the amount is not
susceptible to accrual. At June 30, taxes receivable are materially past due and are not considered to be an
available resource to finance the operations of the current year. Also, as of January 1, 1993, State law
altered the procedures for the assessment and collection of property taxes on registered motor vehicles in
North Carolina. Effective with this change in the law, Union County is responsible for billing and collecting
the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts in the
County, including the City of Monroe. For these motor vehicles registered under the staggered system,
property taxes are due the first day of the fourth month after the vehicles are registered. The billed taxes are
applicable to the fiscal year in which they become due. Therefore, the City's vehicle taxes for vehicles
registered in Union County from March 2009 through February 2010 apply to the fiscal year ended June 30,
2010. Uncollected taxes that were billed during this period are shown as a receivable in these financial
statements and are offset by deferred revenues.
Sales taxes and certain intergovernmental revenues, such as the utilities franchise tax, collected and held by
the State at year -end on behalf of the City are recognized as revenue. Intergovernmental revenues and sales
and services are not susceptible to accrual because generally they are not measurable until received in cash.
Grant revenues which are unearned at year -end are recorded as unearned revenues. Under the terms of grant
agreements, the City funds certain programs by a combination of specific cost - reimbursement grants,
categorical block grants, and general revenues. Thus, when program expenses are incurred, there are both
restricted and unrestricted net assets available to finance the program. It is the City's policy to first apply
cost - reimbursement grant resources to such programs, followed by categorical block grants, and then by
general revenues.
As permitted by generally accepted accounting principles, the City, the City of Monroe ABC Board, and the
Monroe Tourism Authority have elected to apply only applicable FASB Statements and Interpretations
issued on or before November 30, 1989 that do not contradict GASB pronouncements in its accounting and
reporting practices for its proprietary operations.
D. Budgetary Data
The City's budgets are adopted as required by the North Carolina General Statutes. An annual budget is
adopted for all funds except those which operate under project ordinances. All annual appropriations lapse
at fiscal year -end. Project ordinances are adopted for the Capital Projects Funds, two Special Revenue
Project Funds, (the City Grant Programs Fund and the State Grant Programs Fund), and the Enterprise
Capital Projects Funds which are consolidated with their respective operating funds for reporting purposes.
All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally
exceed appropriations at the functional level for all annually budgeted funds and at the object level for the
multi -year funds. The City's department heads may make transfers of appropriations within a department.
Transfers of appropriations between departments require the approval of the City Manager. The legal level
of budgetary control is at the functional level for all annually budgeted funds, and any transfers of
appropriations between functions require the approval of the City Council. The legal level of budgetary
control is at the object level for the funds budgeted by project ordinance, and any transfers of appropriations
between objects require the approval of the City Council. The budget ordinance must be adopted by July 1
of the fiscal year or the governing board must adopt an interim budget that covers that time until the annual
ordinance can be adopted.
34
E. Assets, Liabilities, and Fund Equity
Deposits and Investments
All deposits of the City, the ABC Board, and the Tourism Development Authority are made in board -
designated official depositories and are secured as required by State law [G.S. 159 -31]. The City, ABC
Board, and the Tourism Development Authority may designate, as an official depository, any bank or
savings association whose principal office is located in North Carolina. Also, the City, the ABC Board, and
the Tourism Development Authority may establish time deposit accounts such as NOW and SuperNOW
accounts, money market accounts, and certificates of deposit.
State law [G.S. 159- 30(c)] authorizes the City, the ABC Board, and the Tourism Development Authority to
invest in obligations of the United States or obligations fully guaranteed both as to principal and interest by
the United States; obligations of the State of North Carolina; bonds and notes of any North Carolina local
government or public authority; obligations of certain non - guaranteed federal agencies; certain high quality
issues of commercial paper and bankers' acceptances and the North Carolina Capital Management Trust
( NCCMT). The City's investments are reported at fair value as determined by quoted market prices. The
securities of the NCCMT — Cash Portfolio, a SEC - registered (2a -7) money market mutual fund, are valued
at fair values, which is the NCCMT's share price. The NCCMT — Term Portfolio's securities are valued at
fair value.
The City, the ABC Board, and the Tourism Development Authority's investments with a maturity of more
than one year at acquisition and non -money market investments are reported at fair value as determined by
quoted market prices. The securities of the NCCMT Cash Portfolio, a SEC - registered (2a -7) money market
mutual fund, are valued at fair value, which is the NCCMT's share price. The NCCMT Term Portfolio's
securities are valued at fair value. Money market investments that have a remaining maturity at the time of
purchase of one year or less are reported at amortized cost. Non - participating interest earning investment
contracts are reported at cost.
In accordance with State law, the City has invested in securities which are callable and which provide for
periodic interest rate increases in specific increments until maturity. These investments are reported at fair
value as determined by quoted market prices.
Cash and Cash Equivalents
The City pools money from several funds to facilitate disbursement and investment and to maximize
investment income. Therefore, all cash and investments are essentially demand deposits and are considered
cash and cash equivalents. The ABC Board and the Tourism Development Authority consider all highly
liquid investments (including restricted assets) with a maturity of three months or less when purchased to be
cash and cash equivalents.
Restricted Assets
The unexpended bond proceeds of various enterprise fund serial bonds and unexpended installment
financing obligations received by the City are classified as restricted for the enterprise fund and the general
fund because their use is completely restricted to the purpose for which the bonds and installment
obligations were issued. Customer deposits held by the City before any services are supplied are restricted
to the service for which the deposit was collected.
Ad Valorem Taxes Receivable
In accordance with State Law [G.S. 105 -347 and G.S. 159- 13(a)], the City levies ad valorem taxes on
property other than motor vehicles on July 1 st, the beginning of the fiscal year. The taxes are due on
September 1st (lien date); however, interest does not accrue until the following January 6th. These taxes
are based on the assessed values as of January 1, 2009. As allowed by State law, the City has established a
schedule of discounts that apply to taxes that are paid prior to the due date. In the City's General Fund ad
valorem tax revenues are reported net of such discounts.
35
5. Other Taxes and Licenses
The City also levies a tax of five dollars per motor vehicle residing in the City of Monroe. The revenue
relating to this is accounted for under "Other Taxes and Licenses" in the General Fund. Union County is
responsible for billing and collecting this special vehicle tax in addition to the property taxes on registered
motor vehicles residing in the City of Monroe.
6. Allowance for Douhtful Accounts
Virtually all ad valorem taxes and accounts receivable are collected, and accordingly, an allowance for
uncollectible receivables is not considered material or necessary. An allowance for doubtful accounts has
been established for certain loans receivable that historically experience uncollectible accounts. The
allowance is estimated by analyzing the percentage of receivables that were written off in prior years.
Inventories
The inventories of the City and the ABC Board are valued at cost (first -in, first -out), which approximates
market. The inventories of the City's general fund and enterprise funds and those of the ABC Board consist
of materials and supplies held for subsequent use. The cost of these inventories is expensed when
consumed rather than when purchased.
8. Capital Assets
Capital assets are defined by the government as assets with an initial, individual cost of more than a certain
cost and an estimated useful life in excess of two years. Minimum capitalization costs are as follows: land,
$5,000; buildings, improvements, substations, lines, and other plant and distribution systems, $5,000;
infrastructure, $100,000; furniture and equipment, $5,000; computer software, $5,000 and vehicles, $5,000.
Purchased or constructed capital assets are reported at cost or estimated historical cost. Donated capital
assets are recorded at their estimated fair value at the date of donation. General infrastructure assets
acquired prior to July 1, 2003 consist of the road network assets that were acquired or that received
substantial improvements subsequent to July 1, 1980, and are reported at estimated historical cost using
deflated replacement cost. The cost of normal maintenance and repairs that do not add to the value of the
asset or materially extend assets' lives are not capitalized.
Capital assets are depreciated using the straight -line method over the following estimated useful lives:
Asset Class
Estimated
Useful Lives
Infrastructure
30-50
Buildings and Improvements
20-45
Dams and Reservoirs
45
Plants and Distributions Systems
30-60
Vehicles and Motorized Equipment
6 - 12
Computer Software
5
Other Equipment
5 - 15
Capital assets of the ABC Board are depreciated over their useful lives on a straight -line basis as follows:
Asset Class
Estimated
Useful Lives
Buildings 40
Furniture/Equipment 5 - 7
Vehicles 5
The Tourism Development Authority had no capital assets at June 30, 2010.
36
y. DeferredlUnearned Revenues
Governmental funds report deferred revenue in cou000dnn with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period. Governmental funds also defer
revenue recognition in connection with resources received but not yet earned,
10. Long-Term Obligations
In the de financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as Uuh\hieu iu the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the straight-
line method that approximates the effective interest method. Bonds poyu6|c are reported net of the
applicable bond premiums or discount. Bond issuance costs are reported as deferred charges and amortized
over the term uf the related debt.
In fund financial statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs, during the current period. The face amount of debt issued is reported as other financing
sources. Premiums received on debt issuances are reported as other financing sources while discounts on
debt issuances are reported as other financing uses. loouonoc costs, whether u, not withheld from the actual
debt proceeds received, are reported ux debt service expenditures.
||. Compensated Absences
The vacation policy of the City provides for the accumulation of earned vuoutiuu leave with such leave
being fully vested when earned omfollows:
Employees hired before July /' 1992
Vacation leave may he accumulated without any applicable maximum until June 3O each year. However, if
the employee separates from oc,vioe' payment for accumulated vacation |ouvo shall not exceed sixty (60)
days. On June 30 of each year, any employee with more than (60) days of accumulated leave shall have the
excess accumulation removed so that only sixty (60) days are 000iod forward to July l of the next Oaou)
yea,. The remaining excess amount will be converted to sick leave and added to the employee's sick leave
balance.
Employees hired ofterJuly /'/99O
Vacation leave may be accumulated without any applicable maximum until June 30 of each year. However,
if the employee separates from men/icc' payment for accumulated vacation \ouvo shall not exceed two times
the employee's annual accrual rate (i.e. if the accrual rate im 15 days per year, the employee may only hu
paid for 3Odoya). On June 3Oof each year, each employee may only carry over into the new fimoolyear two
times the employee's annual accrual rate. The remaining excess amount will hc converted to sick leave and
added to the employee's sick leave balance.
Employees o[ the City of Monroe ABC Board earn two weeks paid vacation each your. Employees must
take vacation leave in the year earned and are not allowed tu carry forward any vacation time tosubsequent
years.
The Tourism Development Authority had one employee during the year ended June 30, 2010.
For the City's govurnmeot-wide and proprietary funds, on expense and o liability for compensated absences
and the salary-related payments are recorded uothe leave is earned. The City has assumed ufirst-in, first-
out method of using accumulated compensated time. The portion u[ that time that io estimated tohu used in
the next fiscal year has been designated uxu current liability inthe guvooxoent-vvidcfinanniolstatements.
The City and the ABC Board's sick leave policies provide for an unlimited accumulation of earned sick
leave. Sick \ouvo does not vest, but any unused sick \cuvc accumulated n1 the time uf retirement may ho
used in the determination of length of service for retirement benefit purposes. Since neither the City nor the
ABC Board has any obligation for the accumulated sick leave uoh| it is actually taken, no accrual for sick
leave has been made.
37
12. Net AsxelslFbmdBu/umceo
Net Assets
Net assets in and proprietary fund financial statements are classified m invested incapital
assets, net of related debt restricted; and unrestricted. Restricted net myoeto represent constraints on
resources that are either cxtocno]|y imposed by creditors, grantors, contributors, or laws or regulations of
other governments nr imposed by law through state statute.
Fund Balances
In the governmental fund Uumnuio| statements, maepvo1iuna of fund balance represent amounts that cannot
be appropriated or are legally segregated for n specific purpose. Designations myfund balance represent
tentative management plans that are subject tochange.
State 1uw|G.S. 159-13(b)(16)] restricts appropriation of fund balance for the subsequent year's budget to an
amount not to ozoocd the mum of cash and investments minus the sum of liabilities, encumbrances, and
deferred revenues arising from cash receipts as those amounts stand at the close of the fiocm|year preceding
the budget year.
The governmental fund types classify fund balances as follows:
Reserved.
Reserved for encumbrances — portion of fund balance available to pay for commitments related 10
purchase orders nr contracts which remain unperformed u( year end.
Reserved by 8\u(u mtNm1e - portion of fund balance, in addition to reserves for cnuumbnmuem'
which iu not available for appropriation under State |mv [G.8. 159-8(u)]. This amount is usually
comprised of accounts receivable and iuterOund receivables which have not been offset bydeferred
revenues.
Reserved for streets -Powell Bill -portion of fund balance that ia available for appropriation but
legally segregated for street construction and maintenance expenditures. This amount represents
the balance of the total unexpended Powell Bill funds.
Unreserved.-
Dooignmod - pnrtinooftntu| fund balance available for appropriation that has been designated for
special purposes, such as:
Subsequent year's expend iturco—dooignatod for the adopted 2OlO-2Ol1 budget ordinance.
Uodesignoted - portion of total fund balance uvui|ub|o for appropriation that iu uncommitted ut
year-end.
13. Management Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United 8tu¢ox nf America requires management uomake estimates and nomumpduom that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expend iNruo/uxpcnoen during the reporting period.
Actual results could differ from those estimates.
14. Other Resources
The General Fund provides the basis of local resources for other gnvornmontm| funds. These 1mmomtionu
are recorded as "Transfers —tu other 6uudo" in the General Fund and ^'Truumtem— from other funds" in the
receiving fund.
38
11
Ill.
RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. Explanation of certain differences between the governmental fund balance sheet and the
government-wide statement of net assets
The governmental fund balance sheet includes reconciliation between fund balance - total governmental
funds and net assets - governmental activities as reported in government -wide statement of net assets. One
element of that reconciliation explains that "long-term liabilities, including installment purchase obligations,
are not due and payable in the current period and therefore are not reported in the funds." The details of this
$11,349,384 difference are as follows:
Installment purchase obligations $ 8,209,458
Compensated absences 1,538,268
Net OPEB liability 1,601,658
Net adjustment to reduce fund balance - total governmental funds
to arrive at net assets - governmental activities $ 11,349,384
B. Explanation of certain differences between the governmental fund statement of revenues,
expenditures, and changes in fund balances and the government-wide statement of activities
The government fund statement of revenues, expenditures, and changes in fund balances includes
reconciliation between net change in fund balances - total governmental funds and change in net assets of
governmental activities as reported in the government -wide statement of activities. One element of that
reconciliation explains that "Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated useful lives and reported as
depreciation expense." The details of this $(98,468) difference are as follows:
Capital outlay
Contributed capital — non-cash additions
Depreciation expense
$ 2,831,927
1,186,975
(4,117,370)
Net adjustment to decrease net change in fund balances - total governmental
funds to arrive at change in net assets ofgovernmental activities $ (98,468)
Another element of that reconciliation states that "the issuance of long-term debt provides current financial
resources to governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction has any effect on net assets." The
details of this $1,446,800 are as follows:
Debt issued or incurred:
Installment purchase obligations
Principal payments:
Installment purchase obligations
(474,824)
1,921,624
Net adjustment to increase net change in fund balances - total governmental
funds to arrive at change in net assets ofgovernmental activities $ 1,446,800
DETAIL NOTES ON ALL FUNDS
A. Assets
1. Deposits
All of the deposits of the City, the ABC Board, and the Tourism Development Authority are either insured
or collateralized by using one of two methods. Under the Dedicated Method, all deposits that exceed the
39
federal depository insurance onvoruXe |cvc| are collateralized with securities ko|d by the City's, the ABC
Board's, or the Tourism Development Authority's agents in these units' names. Under the Pooling Method,
which is o collateral pool, all uninsured deposits are collateralized with securities held by the State
Treasurer's agent in the name of the State Treasurer. Since the State Tn:omuoor is acting in u fiduciary
capacity for the City` the &8C Buocd' and the Tourism Development Authority, these deposits are
considered to he held by the City's, the ABC 8ourd`x' and the Tourism Development Authority's agents in
their names. The amount uf the pledged coUo1crn| is based on an approved averaging method for non-
interest bearing deposits and the uob/ol current balance for interest bearing deposits. Depositories using the
Pooling Method report to the 8<u1c Treasurer the adequacy of their pooled oo1|nteru| covering uninsured
deposits. The State Treasurer does not coofinnthis information with the City, the ABC Board, the Tourism
Development Authority, or the emornvv agent. Because of the inability to measure the exact amount of
collateral pledged for the City, the ABC Board, and the Tourism Development Authority under the Pooling
Method, the potential exists for under-col lateral ization' and this risk may increase in periods o[high cash
flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for
each depository that collateralizes public deposits under the Pooling Method, The City, the ABC Board and
the Tourism Development Authority do not have formal policies regarding custodial credit risk for deposits,
but rely on the State Treasurer to enforce standards of minimum capitalization for all pnu|iu8 method
financial institutions and to monitor them for compliance. The City, the ABC Board and the Tourism
Development Authority comply with the provisions ofG.8. 150-31 when designating otficia|depositories
and verifying that deposits are properly secured.
At June 30` 2010 the City's deposits had u carrying amount of $8`542,332 and u bunk balance of
$8'851,235. In addition, there was $6,431,441 in an escrow account with a8omtee of unspent bond and
installment financing proceeds. Of the bank balance, $5OO,0O0 was covered by federal depository insurance
and the remainder was covered by collateral held under the Pooling Method. The City's petty ouxh fund
totaled $4,725.
AJ June 0,0|Uthe ABC Board's deposits had a carrying amount of $4l3,045 and u bank balance of
$628'529. Uf the bank balance, $250,UO0 was covered by federal depository insurance, and $378,52Vwas
covered by collateral held under the Pooling Method. The ABC Board's petty cash fund totaled $3,900.
At June 3O`20lO, the Tourism Development Authority's deposits had a carrying amount oY$l7V]6| and
bank balance of$|79,l6|. The entire balance was covered hy federal depository insurance.
Z Investments
Aauf June 30,2O|0, the City had the following investments and maturities:
Investment Fair Value
U.8. Government Agencies S 67,773,428
NCCupiLu\Mumagemen¢Tmst —
Cash Portfolio 14'131,027
NC Capital Management Trust —
Tenn Portfolio 324,887
Total 87,229,342
|-2
\ Yoar ycor
$ 12,118/476 $ 20'146,000
3-5
Years
� 35'508`052
N/A N/A N/A
Interest Rate Risk. The City does not have uformal investment policy that limits investment maturities as
means of managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk. The City has no formal policy regarding credit risk, but has internal management procedures
that limits the City's investments to the provisions nfU.8. 159-30 and restricts the purchase nf securities tn
the highest poxxih|c ratings whenever particular types of securities are rated. The iovcxUneo/ in D.S.
Gnvcnnmco< Agencies (Federal Bmno Loan Bank) is rated /\/\A by Standard and Poor`u and &aa by
&8ondy`o Investors Service. The City's iovcwU000t in the NC Capital Management Trust Cash Portfolio
carried a credit rating uf/\AAm by Standard and Pnor`muxof June 3O'2OlO. The City's investment in the
UK
NC Capital Management Trust Tenn Portfolio is unrated. The Term Portfolio is authorized to invest in
obligations of the U.S. government and agencies, and inhigh grade money market instruments as permitted
under North Carolina General Statutes 159-30 as amended.
Custodial Credit Risk, For an investment, the custodial risk im the risk that in the event of the failure of the
oouot rparty, the City will not be able to recover the value of its investments or collateral securities that are
in the possession oCan outside party. The City has no policy on custodial credit risk.
Concentration of Credit Risk. The City's Board places no limit on the amount that the City may invest in
any one issuer. More than 5 percent oythe City's investments are in Federal Home Loan Bank securities.
This investment io4O.7Y6of the City's total investments. ln addition, the City had 2}.9%of its investment
portfolio in the yJCCK8T— cash portfolio ui June 3O'2O|O.
Note Receivable
The City granted upromissory note in the amount of$404,92lNanelectric customer to reimburse the cost
and installation nC equipment during the fiscal year 2006. The remaining bdonuu of the promissory note is
payable in quarterly installments o[520'963 through August 20l0. The note calls for interest tohopaid
quarterly at the applicable prime rate. Principal uu||eudnum on the note receivable for the fiscal year ended
totaled $83,853. The note is secured byequipment.
2010
Total receivable $ 20.963
Less current portion 20,963
Total Note Receivob|c — Noucurreot $ '
Scheduled future maturities of the note receivable are umfollows:
ME
$
The City grunted promissory notes to an electric customer to reimburse the cost and installation of
equipment. The remaining balances oC the promissory notes are payable in monthly installments. Due to
the nature ofthe terms agreed upon the payment amounts will vary and are unpredictable. The monthly
payment amounts are determined uofollows:
Each month electric charges will becalculated based oo the DCPNCrate (L[CPNC Bill) and
electric charges will be calculated based on the LDCPNCrate assuming peak generation had not
been used (LJCPNC Bill NuGcmeratinn). The difference io these rate calculations (i.c. LlC9NC
Bill No Generation —L]CPNC Bill) will be used tn fund the City's recovery o[one half ufthe
installed cost ufthe generation. The customer's monthly bill will equal the L[C9NC Bill plus one
half o[ the difference in the LIC9NC Bill No Generation and the LlCPMCBUi
The first promissory note was granted during fiscal year 2007 for $1,730,070. At the current rate of
payment it is estimated that the note will be repaid in full during fiscal year 2013. The agreement is non
interest bearing and im secured byoquipmcui Principal collections nu the note receivable for the fiscal year
ended totaled $35|,575. Future payments n[ the note receivable can vary based on the customers electricity
usage. The cuff ontportion has been calculated huxod on payments received during the year ended June 30,
2010
Total receivable $ 702,511
Less current portion 336,681
Total Note Receivub|c — Noncurrent $ 365830
Scheduled future maturities of the note receivable are oufollows:
2011 320,681
3012 336,681
2013 29,149
� 702,5||
a
The second promissory note was granted during fiscal year 2010 for $2,300,000. At the current rate of
payment it is estimated that the note will be repaid in full during fiscal year 2018. The agreement is interest
bearing at a rate of 4.5% and is secured by equipment. Principal collections on the note receivable for the
fiscal year ended totaled $68,005. Future payments of the note receivable can vary based on the customers
electricity usage. The current portion has been calculated based on payments received during the year
ended June 30, 2010.
2010
Total receivable $ 2,231,995
Less current portion 290,000
Total Note Receivable — Noncurrent $ 1,941,995
Scheduled future maturities of the note receivable are as follows:
2011
$ 290,000
2012
290,000
2013
290,000
2014
290,000
2015
290,000
Thereafter
781,995
$ 2,231,995
The City granted a promissory note in the amount of $6,000,000 to a natural gas supplier for capacity
charges related to the leased capacity of a natural gas line. The remaining balance of the promissory note is
payable in monthly installments of $97,363 through June 2016. The note calls for interest to be paid
monthly at the annual rate of 5.42 %. Principal collections for the fiscal year ended June 30, 2010 totaled
$97,363.
2010
Total receivable $ 5,902,637
Less current portion 869,831
Total Note Receivable — Noncurrent $ 5,032,806
Scheduled future maturities of the note receivable are as follows:
2011
$ 869,831
2012
918,163
2013
969,183
2014
1,023,039
2015
1,079,884
Thereafter
1,042,537
$ 5,902,637
4. Receivables - Allowance for Doubtful Accounts
The amounts presented in the Balance Sheet and the Statement of Net Assets are net of the following
allowances for doubtful accounts:
Special Revenue Fund
Loans Receivable $ 20,895
5. Capital Assets
Primary Government
Capital asset activity for the primary government for the year ended June 30, 2010, was as follows:
42
Governmental activities capital assets, net $ 81,636,681 $ 81,505,564
Depreciation expense was charged to functions/programs of the primary government as follows:
General government $ 314/496
Transportation
23V0838
Public safety ` `
953558
Culture and recreation "
453573
Economic and physical development '
Iu1u| depreciation expense $ 4j17,370
43
Beginning
Ending
Balances
Increases
Dcorcumom
Balances
Governmental activities:
General Fund
Capital assets not being depreciated:
Land and land improvements
% 4,374,393 $
232'400
$ -
% 4,596,793
Construction iuprogress
2,396,712
2,642,991
3,944,086
1,095,617
Total capital assets not being depreciated
6,771,105
2,865,391
3,944,086
5,692,410
Capital assets being depreciated:
Buildings and improvements
17'010'641
2,620,482
'
}9,63}`123
Equipment
3,984,465
}09,}84
26,774
4'066,875
Vehicles and motorized equipment
13`325,623
633`559
614`048
13'335`134
Other intangibles
'
418`410
-
418`410
lnbnxUooknc
85,946,770
1,186,975
-
87]33,745
Total capital assets being depreciated
120267499
4,958,610
640,822
124,585,287
Less accumulated depreciation 0ur'
Buildings and improvements
6,500,148
472,874
-
7,063,022
Equipment
2'340'056
281'785
18,085
2'002,856
Vehicles and motorized equipment
8,737,033
1`211`143
589,189
9.359.707
Other intangibles
-
73.714
-
73,714
Infrastructure
27,733,886
2j10,083
-
20,843,900
Total accumulated depreciation
45401923
4j49,599
$ 608j74
48,943,348
Total capital unnutn being depreciated, net
74,865,576
75,641,939
General Fund capital assets, net
81636681
81,334,349
Downtown Monroe Fund
Capital assets not being depreciated:
Land and land improvements
-
80j40
00J49
Total capital assets not being depreciated
-
80j49
-
80]49
Capital assets being depreciated:
Equipment
-
98,071
-
98,071
Total capital assets being depreciated
'
98,071
-
98,071
Less accumulated depreciation &`r:
Equipment
'
7,005
-
7,005
Total accumulated depreciation
- $
7,005
$ -
7,005
Total capital assets being depreciated, net
-
91,066
Downtown Monroe Fund capital assets, net
'
171,215
Governmental activities capital assets, net $ 81,636,681 $ 81,505,564
Depreciation expense was charged to functions/programs of the primary government as follows:
General government $ 314/496
Transportation
23V0838
Public safety ` `
953558
Culture and recreation "
453573
Economic and physical development '
Iu1u| depreciation expense $ 4j17,370
43
Capital assets being depreciated:
Buildings and improvements
Beginning
- -
Ending
Equipment
Balances
Increases Decreases
Balances
Business -type activities:
2,886,334
75,000 84,315
2,877,019
Water and Sewer Fund
54,124,633
6,056,792 -
60,181,425
Capital assets not being depreciated:
82,611,000
6,233,174 154,416
88,689,758
Land and land improvements
$ 662,216 $
167,611 $ - $
829,827
Construction in progress
6,655,456
1,032,394 6,549,002
1,138,848
Total capital assets not being depreciated
7,317,672
1,200,005 6,549,002
1,968,675
Capital assets being depreciated:
Buildings and improvements
22,879,384
- -
22,879,384
Equipment
2,720,649
101,382 70,101
2,751,930
Vehicles and motorized equipment
2,886,334
75,000 84,315
2,877,019
Infrastructure
54,124,633
6,056,792 -
60,181,425
Total capital assets being depreciated
82,611,000
6,233,174 154,416
88,689,758
Less accumulated depreciation for:
Buildings and improvements
9,405,305
483,507
-
9,888,812
Equipment
1,487,028
185,673
34,171
1,638,530
Vehicles and motorized equipment
2,243,296
157,661
84,315
2,316,642
Infrastructure
10,476,146
999,320
-
11,475,466
Total accumulated depreciation
23,611,775
1,826,161
118,486
25,319,450
Total capital assets being depreciated, net
58,999,225
63,370,308
Water and Sewer Fund capital assets, net
66,316,897
9,084
-
65,338,983
Electric Fund
2,064,670
302,762
-
2,367,432
Capital assets not being depreciated:
1,356,464
204,324
41,024
1,519,764
Land and land improvements
4,408,506
378,800
267,212
4,520,094
Construction in progress
23,176,290
3,368,336
5,258,587
21,286,039
Total capital assets not being depreciated
27,584,796
3,747,136
5,525,799
25,806,133
Capital assets being depreciated:
Buildings and improvements
122,489
580,860
-
703,349
Equipment
4,496,867
18,528
-
4,515,395
Vehicles and motorized equipment
1,930,920
662,877
41,024
2,552,773
Infrastructure
59,637,836
3,680,742
-
63,318,578
Total capital assets being depreciated
66,188,112
4,943,007
41,024
71,090,095
Less accumulated depreciation for:
Buildings and improvements
66,178
9,084
-
75,262
Equipment
2,064,670
302,762
-
2,367,432
Vehicles and motorized equipment
1,356,464
204,324
41,024
1,519,764
Infrastructure
22,234,289
1,565,456
-
23,799,745
Total accumulated depreciation
25,721,601
2,081,626
41,024
27,762,203
Total capital assets being depreciated, net
40,466,511
43,327,892
Electric Fund capital assets, net
68,051,307
69,134,025
Natural Gas Fund
Capital assets not being depreciated:
Land and land improvements
69,580
711,205
-
780,785
Construction in progress
29,670,114
17,523,834
3,262,950
43,930,998
Total capital assets not being depreciated
29,739,694
18,235,039
3,262,950
44,711,783
44
Less accumulated depreciation for:
Buildings and improvements
Beginning
12,598
Ending
Equipment
Balances
Increases Decreases
Balances
Capital assets being depreciated:
407,892
44,156
38,314 413,734
Buildings and improvements
543,152
26,332 -
569,484
Equipment
252,422
394,923 -
647,345
Vehicles and motorized equipment
701,050
- 38,314
662,736
Infrastructure
15,838,257
899,675 -
16,737,932
Total capital assets being depreciated
17,334,881
1,320,930 38,314
18,617,497
Less accumulated depreciation for:
Buildings and improvements
114,272
12,598
- 126,870
Equipment
140,767
44,552
- 185,319
Vehicles and motorized equipment
407,892
44,156
38,314 413,734
Infrastructure
3,846,906
378,326
- 4,225,232
Total accumulated depreciation
41509,837
479,632
38,314 4,951,155
Total capital assets being depreciated, net
12,825,044
7,035,285 852,474
13,666,342
Natural Gas Fund capital assets, net
42,564,738
58,378,125
Aquatics and Fitness Center Fund
14,086,828
9,300 -
14,096,128
Capital assets not being depreciated:
456,339
- -
456,339
Land and land improvements
925,594
-
- 925,594
Total capital assets not being depreciated
925,594
-
- 925,594
Capital assets being depreciated:
14,805,008
44,906
15,116,468
Buildings and improvements
9,386,103
47,479
- 9,431,009
Equipment
63,988
-
- 111,467
Vehicles and motorized equipment
12,280
- 12,280
Total capital assets being depreciated
9,462,371
92,385
- 9,554,756
Less accumulated depreciation for:
Buildings and improvements
2,081,389
253,262
- 2,334,651
Equipment
32,506
7,451
- 39,957
Vehicles and motorized equipment
7,666
1,873
- 9,539
Total accumulated depreciation
2,121,561
262,586
- 2,384,147
Total capital assets being depreciated, net
7,340,810
7,170,609
Aquatics and Fitness Fund capital
assets, net
8,266,404
8,096,203
Airport Fund
Capital assets not being depreciated:
Land and land improvements
7,664,966
672,500 -
8,337,466
Construction in progress
2,925,979
6,362,785 852,474
8,436,290
Total capital assets not being depreciated
10,590,945
7,035,285 852,474
16,773,756
Capital assets being depreciated:
Buildings and improvements
14,086,828
9,300 -
14,096,128
Equipment
456,339
- -
456,339
Vehicles and motorized equipment
261,841
148,760 -
410,601
Infrastructure
-
153,400 -
153,400
Total capital assets being depreciated
14,805,008
311,460 -
15,116,468
45
Less accumulated depreciation for:
Buildings and improvements
Equipment
Vehicles and motorized equipment
Infrastructure
Total accumulated depreciation
Total capital assets being depreciated, net
Airport Fund capital assets, net
Stormwater Fund
Capital assets being depreciated:
Equipment
Vehicles and motorized equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Equipment
Vehicles and motorized equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Stormwater Fund capital assets, net
Business -type activities capital assets, net
Construction commitments
Beginning
15,160
Ending
Balances
Increases Decreases
Balances
523,059
167,444
5,701,812
538,609 -
6,240,421
134,971
55,209 -
190,180
111,453
45,786 -
157,239
-
1,534 -
1,534
5,948,236
641,138 -
6,589,374
8,856,772
8,527,094
19,447,717
25,300,850
5,564
15,160
- 20,724
517,495
152,284
- 669,779
523,059
167,444
- 690,503
8,216,019
397
1,878
- 2,275
275,614
78,034
- 353,648
276,011 $
79,912 $
- 355,923
247,048 334,580
247,048 334,580
$ 204,894,111 $ 226,582,766
The government has active construction projects as of June 30, 2010. At year end, the government's commitments
with contractors are as follows:
Spent -to- Remaining
Projects Date Commitment
Governmental
Capital Projects
Enterprise
Aquatics and Fitness Center
Water and Sewer
Electric
Natural Gas
Airport
Total
$ 1,087,461 $ 323,477
1,138,849
518,033
23,586,039
2,004,137
45,596,073
2,101,687
8,436,289
3,268,685
$ 79,844,711 $
8,216,019
46
Discretely presented component units
Capital asset activity for the ABC Board for the year ended June 30, 2010, was as follows:
Capital assets not being depreciated:
Land and land improvements
Capital assets being depreciated:
Buildings and improvements
Equipment
Vehicles and motorized equipment
Total capital assets being depreciated
Less accumulated depreciation for:
Buildings and improvements
Equipment
Vehicles and motorized equipment
Total accumulated depreciation
Total capital assets being depreciated, net
Discretely Presented Component Unit
Beginning
Ending
Balances
Increases Decreases
Balances
$ 317,013 $
- $ -
$ 317,013
1,023,364
14,015 -
1,037,379
114,230
2,902 -
117,132
15,830
- -
15,830
1,153,424
16,917 -
1,170,341
Business -type activities:
281,172
25,617 -
306,789
89,952
13,180 -
1 03,132
15,830
- -
15,830
386,954 $
38,797 $ -
425,751
766,470
744,590
capital assets, net $ 1,083,483 $ 1,061,603
The Tourism Development Authority had no capital assets.
B. Liabilities
1. Accounts Payable and Accrued Liabilities
Payables at the government -wide level at June 30, 2010, were as follows:
Component units' payables at June 30, 2010, were as follows:
Salaries
and
Vendors Benefits Other Total
ABC Board $ 148,499 $ 484 $ 56,500 $ 205,483
Tourism Development Authority $ - $ - $ 300 $ 300
2. Pension Plan Obligations
a. Local Governmental Employees' Retirement System
Plan Description. The City of Monroe and the ABC Board contribute to the statewide Local Governmental
Employees' Retirement System (LGERS), a cost - sharing multiple- employer defined benefit pension plan
administered by the State of North Carolina. LGERS provides retirement and disability benefits to plan
members and beneficiaries. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend
47
Salaries and
Vendors
Benefits Other
Total
Governmental activities:
General Fund
$ 493,674
$ 6,997 $ -
$ 500,671
Nonmajor Funds
330,282
- -
330,282
Total - governmental activities
$ 823,956
$ 6,997 $ -
$ 830,953
Business -type activities:
Enterprise Funds
$ 6,535,475
$ - $ -
$ 6,535,475
Component units' payables at June 30, 2010, were as follows:
Salaries
and
Vendors Benefits Other Total
ABC Board $ 148,499 $ 484 $ 56,500 $ 205,483
Tourism Development Authority $ - $ - $ 300 $ 300
2. Pension Plan Obligations
a. Local Governmental Employees' Retirement System
Plan Description. The City of Monroe and the ABC Board contribute to the statewide Local Governmental
Employees' Retirement System (LGERS), a cost - sharing multiple- employer defined benefit pension plan
administered by the State of North Carolina. LGERS provides retirement and disability benefits to plan
members and beneficiaries. Article 3 of G.S. Chapter 128 assigns the authority to establish and amend
47
hooufit provisions to the North Carolina General Assembly. The Local Governmental '
Retirement System is included in the Comprehensive &mxm| Financial Report (C&FQ) for the State of
Y4odb Carolina. The State's CAF& includes financial statements and required supplementary inbonno1ion
for LGE&8. That report may be obtained by writing to the Office of the State Controller, 1410 K4ui|
8orvicuCento,, Raleigh, North Carolina 2?69p-|4|O`orhy calling (V\V)v8|-j454.
Funding Policy. Plan members are required to contribute six percent of their annual covered salary. The
City and the ABC Board are required to contribute at an actuarially detennined rate. For the City, the
current rate for employees not engaged in law enforcement and for law enforcement officers io4.89%and
4.86%' respectively, of annual covered payroll. For the ABC Board, the current rate for ooup|oyeou not
engaged in law enforcement is 6.50% of annual covered payroll. The contribution requirements of members
and of the City of Monroe and the ABC Board are established and may be amended by the North Carolina
General Assembly.
The City's contributions to L(3ERS for the years ended June 30' 2010. 2009, and 2008' were $1`084'527'
$1,058'105, and $990.287. respectively. The ABC Board's contributions to [GER8 for the years ended
June 30'2O|O'2O0V. and 2OO8 were $\4^2iO'$l3^3V4' and Dl5,O96, respectively. The contributions made
hy the City and the ABC Board equaled the required contributions for each year.
b. Law Enforcement Officcm'Spoc/u/SepurudonA8ow'onco
Plan Description.
The City of Monroe administers o public employee rc1iromou( system (the "Separation &Uovvonco"), o
single-employer defined benefit pension plan that provides retirement benefits to the City's qualified sworn
law enforcement officers. The Separation &Uovvouuo is equal to .85 percent ofthe 000uu| equivalent ofthe
6umu rate of compensation most recently applicable tothe officer for each year ofcreditable service. The
retirement benefits are not subject to any increases in ao|ury or retirement allowances that may be
authorized hy the General Assembly. Article l2Dof(3.8.Chapter 143 assigns the authority to establish and
amend benefit provisions to the North Carolina General Assembly.
All full time law enforcement officers of the City are covered bythe Separation Allowance. At December
3l'2O88. the Separation Allowance's membership consisted o[
Retirees receiving benefits 13
Terminated plan mmnbcs outNud to
but not yet receiving hcnufim -
Active plan members 82
Total 95
/& separate report was not issued for the plan.
Summary of3ignificun/ Accounting Policies:
Basis of Accounting. The City has chosen 0o fund the Separation /\|1on/unoc on o pay as you go 6umio.
Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis of
accounting.
Method Used /o Value Investments. No funds are set aside to pay benefits and administration costs. These
expenditures are paid as they come due.
Contributions.
The City is required by Article 12D o[(]. S. Chapter 143 to provide tkcmo retirement bcnuG10 and has
chosen to fund the benefit payments on u pay unyou go basis through appropriations made in the General
Fund operating budget. The City's obligation to contribute to this plan is established and may be amended
by the North Carolina General Assembly. There were no contributions made byemployees.
48
The annual required contribution for the current year was determined as part of the December 31, 2008
actuarial valuation using the projected unit credit actuarial cost method. The actuarial assumptions included
(a) 7.25% investment rate of return (net of administrative expenses) and (b) projected salary increases of
4.5% to 12.3% per year. Both (a) and (b) included an inflation component of 3.75 %. The assumptions did
not include post - employment benefit increases. The unfunded actuarial accrued liability is being amortized
as a level percentage of pay on a closed basis. The remaining amortization period at December 31, 2008
was 22 years.
Annual Pension Cost and Net Pension Obligation. The City's annual pension cost and net pension
obligation (prepayment) to the Separation Allowance for the current year were as follows:
Annual required contribution
$ 174,367
Interest on net pension obligation
(9,579)
Adjustment to annual required contribution
8,323
Annual pension cost
173,111
Contributions made
170,318
Decrease in net pension obligation
2,793
Net pension obligation, beginning of year
(132,123)
Net prepaid pension obligation, end of year
$ (129,330)
3 Year Trend Information
For Year
Annual Pension
Percentage of
Net Pension
Ended
Cost
APC
Obligation
June 30
(APC)
Contributed
(Prepayment)
2008
$ 142,457
108.23%
$ (129,331)
2009
163,225
101.71%
(132,123)
2010
173,111
98.39%
(129,330)
Funded Status and Funding Progress
As of December 31, 2009, the most recent actuarial valuation date, the plan was not funded. The actuarial
accrued liability for benefits and the unfunded actuarial accrued liability (UAAL) was $2,184,631. The
covered payroll (annual payroll of active employees covered by the plan) was $4,461,289, and the ratio of
the UAAL to the covered payroll was 48.97 %.
The schedule of funding progress, presented as required supplementary information following the notes to
the financial statements, presents multiyear trend information about whether the actuarial value of plan
assets are increasing or decreasing over time relative to the actuarial accrued liability for benefits.
C. Supplemental Retirement Income Plan
Law Enforcement Officers
Plan Description. The City contributes to the Supplemental Retirement Income Plan (Plan), a defined
contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The
Plan provides retirement benefits to law enforcement officers employed by the City. Article 5 of G.S.
Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General
Assembly.
Funding Policy. Article 12E of G. S. Chapter 143 requires the City to contribute each month an amount
equal to five percent of each officer's salary, and all amounts contributed are vested immediately. Also, the
law enforcement officers may make voluntary contributions to the plan. Contributions for the year ended
June 30, 2010, were $303,748 which consisted of $225,389 from the City and $78,359 from the law
enforcement officers.
49
General
The City has elected Ncontribute to the Supplemental Retirement Income Plan for general employees as
well as for law enforcement officers. Participation begins after six months of employment. The City has
elected to contribute each month on amount equal W five percent of each employee's ao|ag, and all
amounts contributed are vested immediately. Also, the employees may make voluntary contributions tuthe
plan. Contributions for the year ended June 3O'20lO' were $l,2V3,ll7, which consisted of$882,|24from
the City and $4lO,AV] from the employees.
d. Firemen's and Rescue Squad Workeo'PmskmFund
Plan Description. The State of l4urt6 Carolina ountrihutcu, on huhu\[ of the City of Monroe, to the
Firemen's and Rescue Squad Workers' Pension Fund (Fund)` a cost-sharing multiple-employer defined
benefit pension plan with a special ftincling situation administered by the State of North Carolina. The Fund
provides pension hcnuDtu for eligible fire and r000uo squad workers that have elected to become members
o[ the fund. Article 86ufG.S. Chapter 58 assigns the authority to establish and amend honcfitprovisions to
the North Carolina '3unura| Assembly. The Firemen's and Komuue Squad VVo,kum' Pension fund is
included in the Comprehensive Annual Financial Kopurt(C/\FR) for the State of North Carolina. The
State's C/\FR includes Onuouiu| statements and required supplementary information for the Pond. That
report may 6e obtained bv writing tn the Office nf the State Controller, |4\0 Mail Service Center, Raleigh,
North Carolina 276Vy-i4l0,urhy calling (9\V)yRl-5454.
Funding Policy. 9|un members are required to contribute $10 per month to the Fund. The State, u non-
employer contributor, funds the plan {brno#h appropriations. The City does not contribute to the Fund.
Contribution requirements uf plan members and the State of North Carolina are established and may be
amended by the North Carolina General Assembly.
On-Beha4f Payments. For the fiscal year ended June 3O'20\0,the City of Monroe has recognized on-behalf
payments for pension contributions made by the state as a revenue and an expenditure of $13,665 for the 48
employed fimcmcnwho perform fi/efigktiugduties for the City's fire department. The employees elected tu
6e members of the Firemen and Rescue Squad Worker's Pension Fund.
o. 0/6mr 8omefitr
Healthcare Benefits
Plan Description
Under the terms ofaCity resolution, the City administers o single employer Health and Dental Care Plan.
This plan provides postemp\oymotbcukhcmr and dental benefits to retirees of the City provided they
participate in the North Carolina Local Government Employees' Retirement System and have twenty (20)
years uf creditable service with the City. The amount the City pays towards these benefits is based onyears
of service with the City. The City pays the full cost of coverage for these benefits through private insurers.
A stand-alone financial report im not issued.
Funding Policy
Employees with 2Oto25 years of semice — {heCity pays 50% and 75% of the cost of health and dental
insurance, nmpoohvu|y.
Employees with 3Oyears of semice — UmCity pays 100% of the cost of health and dental insurance. In
addition, retirees with 30 years of service receive $5'5O0of life insurance coverage.
When uretiree reaches age 65,they are transferred to the Medicare Supplement Group Plan and Part D
Group Plan at the above referenced pmrcutugc of cost based on years of service. At that time, any
dependents covered are offered COBRA coverage.
9E
Membership of the Health Care Plan consisted of the following at July 1, 2009:
Retirees and dependents receiving benefits
Terminated plan members entitled to but
not yet receiving benefits
Active plan members
All Employees
76
436
Total 512
The current ARC rate is 7.53% of annual covered payroll. For the current year, the City contributed
$397,000 or 1.99% of annual covered payroll. For the year ended June 30, 2010, the City made payments
for postretirement health benefit premiums of $295,182. The City's obligation to contribute to Health Care
Plan is established and may be amended by the City Council.
Summary of Significant Accounting Policies
Postemployment expenditures are made from the Health and Dental Self - Insurance Fund. No funds are set
aside to pay benefits and administration costs. These expenditures are paid as they come due.
Annual OPEB Cost and Net OPEB Obligation
The City's annual OPEB cost (expense) is calculated on the annual required contribution of the employer
(ARC), an amount actuarially determined in accordance with the parameters of GASB Statement 45. The
ARC represents a level of funding that, if paid on an ongoing basis is projected to cover normal cost each
year and amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
years. The following table shows the components of the City's annual OPEB cost for the year, the amount
actually contributed to the plan, and changes in the City's net OPEB obligation for the healthcare benefits:
Annual required contribution $ 1,502,000
Interest on net obligation 46,000
Adjustment to annual required contribution (35,000)
Annual OPEB cost (expense) 1,513,000
Contributions made (397,000)
Increase (decrease) in net OPEB obligation 1,116,000
Net OPEB obligation, beginning of year 1,154,000
Net OPEB obligation, end of year $ 2,270,000
The City's annual OPEB costs, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2010 were as follows:
For Year
Annual
Percentage of Annual
Net OPEB
Ended June 30
OPEB Cost
OPEB Cost Contributed
Obligation
2010 $
1,513,000
33.3% $
2,270,000
Funded Status and Funding Progress
As of July 1, 2009, the plan was not funded. The actuarial accrued liability for benefits, and, thus the
unfunded actuarial accrued liability (UAAL) was $19,201,000. The covered payroll (annual payroll of
active employees covered by the plan) was $19,927,000, and the ratio of the UAAL to the covered payroll
was 93.4 %. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
51
assumptions about the probability of occurrence of events far into the future. Examples include factors such
as changes in economic or demographic assumptions, increases or decreases expected as part of the natural
operation of the methodology used for these measurements (such as the end of an amortization period or
additional cost or contribution requirements based on the plan's funded status) and changes in the plan
provisions or applicable law. Amounts determined regarding the funded status of the plan and the annual
required contributions of the employer are subject to continual revision as actual results are compared with
past experiences 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 multiyear
trend information about whether the actuarial value of plan assets is increasing or decreasing over time
relative to the actuarial accrued liabilities for benefits.
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 included the types of benefits provided at the time
of each valuation and the historical pattern of sharing of benefit costs between the employer and plan
members at 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 assets,
consistent with the long -term perspective of the calculations.
In the July 1, 2009 actuarial valuation, the projected until credit cost method was used. The actuarial
assumptions included a 4.00 percent investment rate of return, which is the expected long -term investment
returns on the employer's own investments calculated based on the funded level of the plan at the valuation
date, and an annual medical cost trend increase of 11.00 to 5.00 percent annually. Both rates included a
3.75 percent inflation assumption. The actuarial value of assets, if any, was determined using market value
of investments. The UAAL is being amortized as a level percentage of projected payroll on an open basis.
The remaining amortization period at July 1, 2009 was 30 years.
3. Other Employment Benefits
The City elected to provide death benefits to employees through the Death Benefit Plan for members of the
Local Governmental Employees' Retirement System (Death Benefit Plan), a multiple- employer, State -
administered, cost - sharing plan funded on a one -year term cost basis. The beneficiaries of those employees
who die in active service after one year of contributing membership in the System, or who die within 180
days after retirement or termination of service and have at least one year of contributing membership
service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments
to beneficiaries are equal to the employee's 12 highest months salary in a row during the 24 months prior to
the employee's death, but the benefit may not exceed $50,000 or be Less than $25,000. All death benefit
payments are made from the Death Benefit Plan. The City has no liability beyond the payment of monthly
contributions. Contributions are determined as a percentage of monthly payroll, based upon rates
established annually by the State. Separate rates are set for employees not engaged in law enforcement and
for law enforcement officers. Because the benefit payments are made by the Death Benefit Plan and not by
the City, the City does not determine the number of eligible participants. For the fiscal year ended June 30,
2010, the City made contributions to the State for death benefits of $22,173. The City's required
contributions for employees not engaged in law enforcement and for law enforcement officers represented
.09% and .14% of covered payroll, respectively. The contributions to the Death Benefit Plan cannot be
separated between the post- employment benefit amount and the other benefit amount. The City considers
these contributions to be immaterial.
4. DeferredlUnearned Revenues
The balance in deferred or unearned revenue on the fund statements and unearned revenues on the
government -wide statements at year end is composed of the following elements:
MN
Property taxes receivable:
General
Nomnajor governmental
Privilege license receivable:
General
Loans receivable:
Nonmajor governmental
Special vehicle tax receivable:
General
Code enforcement liens receivable:
General
Prepaid taxes and licenses:
General
Total
Risk Management
Deferred
Unearned
Revenue
Revenue
$ 1,058,212 $
-
5,092
-
19,151
-
25,655
-
30,689
-
86,318
-
-
517,602
$ 1,225,117 $
517,602
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; injuries to employees; and natural disasters. The City is self - funded with regard to
group health and workers' compensation insurance coverages. There have been no significant reductions in
insurance coverage from the prior year, and settled claims have not exceeded coverage in any of the past
three fiscal years.
A liability for a claim is established if information indicates that it is probable that a liability has been
incurred at the date of the financial statements and the amount of the loss is reasonably estimable. Liabilities
include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to
estimate the claims liability is not an exact amount as it depends on many complex factors, such as inflation,
changes in legal doctrines, and damage awards. Accordingly, claims are reevaluated periodically to
consider the effects of inflation, recent claim settlement trends (including frequency and amount of pay
outs), and other economic and social factors. The estimate of the claims liability also includes amounts for
incremental claim adjustment expenses related to specific claims and other claim adjustment expenses
regardless of whether allocated to specific claims.
Flood Insurance
The City carries flood insurance for properties located in Flood Zones B, C and X through participation in
the North Carolina League of Municipalities Interlocal Risk Financing Fund of North Carolina. The City
does not have properties of significant value in these Flood Zones.
Self - Funded Insurance
The City has established three Internal Service Funds to account for self - insured risk financing.
Funding of the Health Benefit Fund is based upon an analysis of historical and projected medical
and dental claims paid by the third party administrator and the availability of unrestricted net
assets to fund projected claims. Funding of the Workers' Compensation Fund is based upon
payroll rates established by the State of North Carolina and the availability of unrestricted net
assets to fund projected claims. Funding of the Property and Casualty Fund is based upon
experience and exposure risks associated with County operations and the availability of
unrestricted net assets to fund projected claims.
53
Group Health Insurance
Effective July L2002,the City established an employee medical benefit plan to self-insure claims up to
570`000 per year for each individual covered; claims above $70'000 and aggregate daimm exceeding 125%
of expected incurred and paid claims are covered by a stop loss insurance policy.
Workers' Compensation Insurance
The City has uself-funded workers' insurance plan. Through this plan the City has workers`
compensation coverage ofuptm the statutory limits. The self-insurance plan has u8350'0O0 retained risk
per occurrence with u$l`OUO`UUU aggregate limit. The City also carries employer's liability coverage with
similar retention and limit amounts.
Due to the degree of turnover of the outstanding claims, the claims payable as of June 30,2O0are
considered to be current liabilities. Changes in the balance of claims liabilities during the year ended June
3U,2U)U are aufollows:
Health Benefit
Workers'
Property &
Fund
Compensation Fund
Casualty Fund
Unpaid claims ouuf June 3O,2OOD
$ -
$ - $
'
Claims and premiums paid
4,446,767
214,303
313`123
Incurred claims and premiums
Unpaid claims unof June 3U,2OOA
475'548
15,646
57`747
Claims and premiums paid
5'584,683
179,418
522'008
Incurred claims and premiums
Unpaid claims amof June 3O,20l0
$ 419,985
$ 13481 $
6,451
The City protects itself from potential loss through participation in the North Carolina League of
Municipalities lntedouu| DJuk Financing Fund of North Carolina for general liability, automobile hahi|k&
public officials and law enforcement |b6i|by. The City maintains coverage of $5,000,000 for
comprehensive general liability, automobile liability, public officials and |mp enforcement liability. The
City's potential loss for liability coverage is limited 0u the deductible amount of$50`O0O per claim for all
coverage except for real and personal property which has a deductible of $25,000 per claim.
In accordance with G.Q.l59-29, the City's employees that have access N$l00 or more at any given time of
the City's funds are performance bonded through u commercial surety bond. The finance officer and tax
collector are each individually bonded for $250,000 each. The remaining employees that have access to
funds are bonded under u blanket bond for $25O`OOO.
The City of Monroe ABC Board is exposed N various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; and natural disasters. The ABC Board has property, general
liability, automobile liability, workers compensation, and employee health coverage. The ABC Board also
has liquor legal liability coverage. There have been no significant reductions in insurance coverage from
the prior year, and settled claims have not exceeded coverage in any of the past three fiscal years.
The Tourism Development Authority bexposed to various risks nfloss related to torts; theft of, damage to,
and dcoUncdun of assets; errors and moiooi000; and natural disasters. The Authority dncm not carry
commercial insurance to cover these risks of loss. All risk management activities are reported in the
Authority's General Fund. Claims expenditures and liabilities are reported when itiu probable that oloss
has occurred and the amount ofthat loss can he reasonably estimated. Based ooavailable information, the
Authority had no liability claims uiJune 30, 2010.
6 Claims, Judgements, and Contingent Liabilities
At June 30'2O|0, the City was udefendant to various lawsuits. In the opinion of the City's management
and the City attorney, the ultimate effect of these legal matters will not have a material adverse effect onthe
City's financial position.
54
7. Long-Term Obligations
a. Installment Purchase Obligations
The City has entered into various installment purchase obligations to acquire certain equipment and to
finance building improvements:
Executed April 23' 1999, to finance construction
of an addition to the aquatics and fitness center,
requiring 26 semi-annual installments of$54,lQU
including interest oi4.48%.
Executed September 22, 1999. and refinanced on
May l9,2UO4,to finance acquisition, renovation,
and furnishing ofa police headquarters, requiring
21 semi-annual installments of $73,429 plus
interest u12.8OY6.
Executed December 22' 2003, to finance
construction of an addition to the aquatics and
fitness center, requiring 20 semi-annual
ine<u||mcntm of $182,145 including in1cme< at
3.85%.
Executed August l2,2O04,tu finance construction
of a street maintenance building, requiring 30
semi-annual installments of$]4'53] plus interest at
3.89%.
Execute] Juno 15, 2006, to finance equipment,
requiring lU semi-annual installments of $245,203
including interest at 3.8 1 %.
Executed June 15, 2007, to finance equipment,
requiring 10 semi-annual installments of $132`518
including interest o1l0333Y6.
Executed February 8, 2008. to Ononoo facility
improvements, requiring 20 oomi'onuuo|
installments oY$g5,O00plus interest ut3.827Y6.
Executed June 20, 2008, to finance equipment,
requiring 10 semi-annual installments o[$2l6'65|
including interest u13.lVY6.
Executed June 15,2009 to finance equipment, lO
semi-annual installments of $201,937 including
interest ut2.837Q%.
Executed January 30'20O0to finance construction
of u recreation center, requiring 30 semi-annual
installments oy$70`724 plus interest a(4.57U%.
Executed June |l' 2010^ W finance equipment,
requiring 10 semi-annual installments of$|8|,6Oy
including interest ut2.585Y6.
RE
Governmental Enterprise
Funds Funds Total
� - $ 155,522 0 155,522
'
1]82,246 1,182246
656,133 656,133
352,515 124,953 477,468
309,744
106,261 506,005
1,520,000
' 1,520,000
886,215
344,639 1^230`854
1,026,898
490144 1,517,042
2,232,272
- 2233,272
1,222,176 l
5 8,209,458 $ 3,625,941 Q |)
Annual debt service payments of the installment purchase obligations as of June 30, 2010, are as follows:
At June 30, 2010, the City had a legal debt margin of $227,418,755.
b. Revenue Bonds
The City also issues bonds where it pledges income derived from the acquired or constructed assets to pay
debt service. Revenue bonds outstanding at year end are as follows:
Serviced by the Water and Sewer Fund, Electric Fund, Airport Fund and
Natural Gas Fund:
$5,195,000 Combined Enterprise System Revenue Bonds, Series 1998,
due annually in amounts ranging from $200,000 to $335,000 through
March 1, 2023, interest rate varying between 3.3% and 4.6 %. The
amount shown is net of the unamortized deferred loss on the defeasance
of $75,939. $ 3,319,061
$6,525,000 Combined Enterprise System Refunding Revenue Bonds,
Series 1998, due annually in amounts ranging from $480,000 to
$675,000 through March 1, 2019, interest rate varying between 3.3% and
4.6 %. The amount shown is net of the unamortized deferred loss on the
defeasance of $95,364. 5,029,636
$30,920,000 Combined Enterprise System Revenue Bonds, Series
2008A, due annually in amounts ranging from $795,000 to $2,055,000
through March 1, 2033, interest rate varying between 4.0% and 5.0 %.
The amount shown includes $330,721 in unamoritized bond premiums
associated with the bonds. 30,485,721
$13,095,000 Combined Enterprise System Revenue Bonds, Series
2008B, due annually in amounts ranging from $470,000 to $1,005,000
through March 1, 2028, interest rate of 4.5404 %. 12,645,000
$ 51,479,418
56
Governmental Activities
Business -Type
Activities
Year Ending June 30
Principal
Interest
Principal
Interest
2011 $
1,736,719 $
285,965 $
1,064,168
$ 105,881
2012
1,409,670
229,590
914,649
72,883
2013
1,225,390
183,134
833,958
43,734
2014
930,211
144,979
556,564
17,658
2015
591,635
115,383
256,602
4,986
2016 -2020
1,678,040
314,328
-
-
2021 -2025
637,798
65,581
-
-
Total $
8,209,458
$
3,625,941
Total interest
payments
$
1,338,960
$ 245,142
At June 30, 2010, the City had a legal debt margin of $227,418,755.
b. Revenue Bonds
The City also issues bonds where it pledges income derived from the acquired or constructed assets to pay
debt service. Revenue bonds outstanding at year end are as follows:
Serviced by the Water and Sewer Fund, Electric Fund, Airport Fund and
Natural Gas Fund:
$5,195,000 Combined Enterprise System Revenue Bonds, Series 1998,
due annually in amounts ranging from $200,000 to $335,000 through
March 1, 2023, interest rate varying between 3.3% and 4.6 %. The
amount shown is net of the unamortized deferred loss on the defeasance
of $75,939. $ 3,319,061
$6,525,000 Combined Enterprise System Refunding Revenue Bonds,
Series 1998, due annually in amounts ranging from $480,000 to
$675,000 through March 1, 2019, interest rate varying between 3.3% and
4.6 %. The amount shown is net of the unamortized deferred loss on the
defeasance of $95,364. 5,029,636
$30,920,000 Combined Enterprise System Revenue Bonds, Series
2008A, due annually in amounts ranging from $795,000 to $2,055,000
through March 1, 2033, interest rate varying between 4.0% and 5.0 %.
The amount shown includes $330,721 in unamoritized bond premiums
associated with the bonds. 30,485,721
$13,095,000 Combined Enterprise System Revenue Bonds, Series
2008B, due annually in amounts ranging from $470,000 to $1,005,000
through March 1, 2028, interest rate of 4.5404 %. 12,645,000
$ 51,479,418
56
The future payments of the revenue bonds for the years ending June 3O` are uufollows:
Activities
Year Ending
June 30 Interest
2011
$ 1,945,000
2,215,085
2012
3'015,000
2233'385
3013
2,100,000
2,148,037
2014
2'190,000
2'058'361
3015
2,290'000
1,964'045
2016-2020
12,245'000
8'214'565
282} -2025
11,505'000
5,526,916
2O26-2030
11'040'000
2,851`377
2031'3033
5890000
568,200
Total
$ 51320000
27,879,871
The future payments as presented above, have not been reduced by $171,303, the unamortized deferred loss
incurred aou result of the advance mbundin@s and the $330'721 inouuoxrbizcd bond premiums.
The City has been in compliance with the covenants as to rates, fees, rentals, and charges in Section 704 of
the Bond Order Authorizing the Issuance o[Combined Enterprise System Revenue Bonds (Bond Order)
since its adoption on May 3, 1994. Section 704(o)of the Bond Order requires the debt service coverage
ratio to be no less than 12596 purity indoboudocmm and 100Y6 of the long term dch< service requirement for
subordinated indebtedness for the fiscal year. The debt service coverage ratio calculation for the year ended
June 30, 2010, is as follows:
Operating revenues Q 75`197,405
Operating expenses (l) 67,175'362
Operating income 8,022,043
l4onoporuhog revenues (2) 938500
Income available for debt service 8,960,633
Parity debt service (3) 4,403,507
Debt service coverage ratio 20%
Income available for debt service 8,960`633
Subordinated debt service (3) 7,673,048
Debt service coverage ratio 117%
(l) Per rate covenants, this does not include the depreciation expense o[$5,0??l26.
(2) Per rate covenants, this includes investment earnings only.
(3) Per rate covenants, this does not include amortization wf the deferred loss incurred as
result of advance robundio&x.
The City has pledged future water and sewer, electric, airport, and natural gas customer revenues, net nf
specified operating expenses, to repay $55.7 million in revenue bonds issued in 1998 and 2008. Proceeds
from the bonds provided financing for various oupikd projects. The bonds are payable solely from the
revenue sources ofibe enterprise funds noted above and are payable through 2O33. Annual principal and
interest payments oo the bonds are expected torequire less than 6Y6of net revenues. The total principal and
interest remaining to be paid on the bonds is $79,199,87 1. Principal and interest paid for the current year
and total customer net revenues were $4`403,5O7 and $74.7 million, respectively.
57
C. AJvowxcRefux6ngs
On October 27'l998, the City issued $6,30,000 in General Obligation Refunding Bonds with interest rates
ranging from 3.3% to 5.0% to advance refund $5'925'000 of outstanding 1091 Water and Sewer general
obligation bonds with interest rates ranging from 6.10Y6to 6.25%. On October 27^ 1998^ the City also
issued 56'525'000 in Combined Enterprise System Refunding Revenue Bonds with interest rates ranging
from 3.3Y6 to 4.6% to advance refund $5'715'000 of outstanding 1994 Combined Enterprise System
Revenue Bonds with interest rates ranging from 42% to6.0%. The net proceeds of$}2'662,J9l were used
0w porubuae U.S. Government securities. 7booc securities were deposited in on irrevocable trust with an
escrow agent to provide for all tbtno debt service payments outhe )OVl Water and Sewer Serial Bonds and
the portion of the 1994 Combined Enterprise System Revenue Bonds which were refunded. Asoresult,
these bonds are considered tohc dufeumod` and the liability for all the 1991 Water and Sewer serial bonds
and the 1994 Combined Enterprise System Revenue Bonds which were refunded have been removed from
the Enterprise Funds. At June 3O,2O0O none ofthe lyVl bonds were outstanding. The 1994 Combined
Enterprise System Revenue Bonds were fully retired in fiscal year 20UO.
The advance refundings resulted in a difference between the reacquisition price and the net carrying amount
oƒ the old debt of$|'O22,39l. This difference, net of the accumulated amortization nf$768,377,iareported
in the accompanying financial statements as u deduction from bonds poyuh|u and is being charged to
operations through the year 20l9 using the effective interest method over the life of the new debt which is
shorter than the life of the refunded debt. The bond iaauuuco costs ueaociuicd with the advance refunding
were expensed during the period incurred because they were not considered to be material. The City
completed the advance rofbndiugm to reduce its total debt service payments over the next 21 years by
$841'061 and to obtain an ouuuonoio gain (difference between the present values of the old and new debt
service payments) of$615,l85.
d State Revolving Loans
The City has entered into six State Revolving Loons to finance water and sewer improvements. N|8tato
Revolving Loans are being serviced hy revenues from the Water and Sewer Fund:
Loan payable to the State of North 0mhm Water
Pollution Control Revolving Loan Fund with umaximum
limit of$7`382`765 payable over J0 years with interest o1
3.385%.
Loan payable to the State of North Carolina Water
Pollution Control Revolving Loan Fund with umaximum
limit ufD3`735`JlO payable over 2O years with interest a1
2.89%.
Loan payable to the State oy North Carolina Water Bond
Loan Fund with omuxhnum limit of$)'5|5'662 payable
over 20 years with interest o(5.85Y6.
Loan payable tothe State of North Carolina Water Bond
Loan Fund with omumimmn limit oƒ$l'484,338 puyuh|o
over 20 yuoo with u revised iuhorcm( rate of 3.43%
effective May 1, 2003 (previous rate was 5]0%).
Loan payable tothe State of North Carolina Water
Pollution Control Revolving Loan Fund with umaximum
limit of$}'l59'O3O payable over 2O years with interest ui
].O35Y6.
Loan payable to the State of North Carolina Water
Pollution Control Revolving Loan Fund with umoxinum
limit uf$|,27O,lO5 payable over 2O years with interest ut
2.89%.
58
1,845,691
747,042
454,699
445,301
379,359
�
Annual debt service requirements to maturity for the State Revolving Loans are as follows:
Year Ending June 30
2011
2012
2013
2014
2015
2016-2017
Total
e. Certificates of Participation
Business -Tvne Activities
Principal
Interest
$ 827,077 $
145,855
827,077
117,508
827,077
88,861
827,077
60,441
640,316
32,050
329,130
10,691
$ 4,277,753 $
455,406
The City has entered into a Certification of Participation agreement to finance natural gas improvements.
All Certificates of Participation are being serviced by revenues from the Natural Gas Fund.
On March 1, 2009 the City issued $32,665,000 in
Certificates of Participation (COPS) Installment Contracts
to finance the construction of natural gas improvements.
These 30 year COPS have interest rates of 3.00 %.
Annual payments of principal and interest range from
approximately $1,900,000 to $1,744,429. Total principal
and interest over a 30 -year period will be $65,490,748.
The amount shown is net of the unamortized bond
discount of $329,131. $ 32,335,869
Annual debt service requirements for Certificates of Participation are as follows:
Year Ending June 30
2011
2012
2013
2014
2015
2016-2020
2021 —2025
2026 —2030
2031 -2035
2036 —2039
Total
Business -Tvne Activities
Principal
Interest
$ 600,000 $
1,597,950
620,000
1,579,950
635,000
1,561,350
655,000
1,542,300
675,000
1,522,650
3,755,000
7,234,063
4,605,000
6,386,638
5,840,000
5,155,494
7,575,000
3,413,025
7,705,000
1,087,900
$ 32,665,000 $
31,081,320
The future payments presented above, have not been reduced by $329,131, the unamortized bond discount
incurred as a result of the issurance.
f. Changes in Long -term Liabilities
Balance
July 1, 2009
Governmental activities:
Installment purchase obligations $ 9,656,258
Compensated absences 1,499,542
OPEB liability 818,335
Current
Balance Portion of
Increases Decreases June 30, 2010 Balance
$ 474,824 $ 1,921,624 $ 8,209,458 $ 1,736,719
1,108,222 1,069,496 1,538,268 1,030,640
783,323 - 1,601,658 -
Governmental activities long -term liabilities $ 11,974,135 $ 2,366,369 $ 2,991,120 $ 11,349,384 $ 2,767,359
M
Business -type activities:
Compensated absences
OPEB liability
Installment purchase obligations
Certificates of participation
Less unamortized discounts
Total certificates of participation
General obligation bonds 140,000
Less deferred amount for loss on defeasance (1,416)
Total general obligation bonds 138,584
Revenue bonds
53,185,000
Less deferred amount for loss on defeasance
(206,002)
Current
Balance
Total revenue bonds
53,333,469
Balance
Portion of
July 1, 2009
Increases
Decreases
June 30, 2010
Balance
_ 23,752
330,719
23,229
- 1,854,051
$ 434,213 $
419,406
$ 351,009
$ 502,610 $
336,751
335,665
332,677
-
668,342
-
3,345,606
1,222,300
941,965
3,625,941
1,064,169
32,665,000
-
-
32,665,000
600,000
(340,679)
-
(11,548)
(329,131)
(11,548)
32,324,321
-
(11,548)
32,335,869
588,452
General obligation bonds 140,000
Less deferred amount for loss on defeasance (1,416)
Total general obligation bonds 138,584
Revenue bonds
53,185,000
Less deferred amount for loss on defeasance
(206,002)
Plus bond premium
354,471
Total revenue bonds
53,333,469
- 140,000
-
-
- (1,416)
-
-
138,584
-
-
- 1,865,000
51,320,000
1,945,000
- (34,701)
(171,301)
(32,058)
_ 23,752
330,719
23,229
- 1,854,051
51,479,418
1,936,171
State revolving loans 5,104,832 - 827,079 4,277,753 827,077
Business -type activities long -term liabilities $ 95,016,690 $ 1,974,383 $ 4,101,140 $ 92,889,933 $ 4,752,620
For governmental activities, compensated absences are liquidated by the General Fund. For business -type
activities, compensated absences are liquidated by the respective business -type fund.
C. Interfund Balances and Activity
Balances due to /from other funds at June 30, 2010, consist of the following:
Due to the Electric Fund for the purchase of land to be used for incentive grants for
industries:
General Fund $ 1,256,422
Due to the Electric Fund to be used for capital improvements:
Natural Gas Fund $ 5,91 1,644
Due to the Electric Fund for improvements:
Airport Fund — principal $ 7,521,336
Airport Fund — interest 37,607
$ 7,558,943
Due to the Electric Fund for establishment of:
Stormwater Fund $ 146,092
Balances due to /from component units at June 30, 2010, consist of the following:
Due to the Primary Government for profit distributions from:
Monroe ABC Board $ 56,500
Due to the Primary Government for Occupancy Tax:
Monroe Tourism Development Authority 18,500
$ 75,000
,1
Transfers to/from other funds at June 30,2O|0, consist nf the following:
From the General Fund to the Airport Fund for current
operating needs and construction projects $
737,262
From the General Fund tn the Downtown Monroe Special
Revenue Fund for general operations
454'042
From the 8tonmp/uicr Fund to the General Fund for
proportionate share of new street department shed
26`900
From the Capital Projects Fund tn the General Fund for
savings from onnshncinnprojects
709`990
From the Occupancy Tax Special Revenue Fund tothe
General Fund for administrative fees
8'818
From City Grant Programs Fund tu the General Fund for
expired incentive grants
258,119
� 2,285,131
D. Revenues, Expenditures, and Expenses
Fringe Benefits and Salaries
For the fiscal year ended June 30, 200` the City of Monroe has recognized on-behalf payments for pension
contributions made by the state asorevenue and an expenditure of $13,665 for the 48employed firemen
who perform firefighting duties for the City's fire department. The employees elected to be members of the
Firemen and Rescue Squad Worker's Pension Fund, oonat-skarin&' multiple employer public employee
retirement system established and administered by the State of North Carolina. The Plan is funded by a $ 10
monthly contribution paid by each member, investment income, and a State appropriation.
Also, the City has recognized asarevenue and an expenditure on-behalf of payments for fringe benefits and
salaries of $25,149 for the salary supplement and stipend benefits paid to eligible firemen by the local board
of trustees of the Firemen's Relief Fund during the fiscal year ended June 30, 2010. Under State law the
|nco1 board of trustees for the Fund receives on amount each year, v/bioh the board may use at its own
discretion for eligible firemen or their departments.
IV. JOINTLY GOVERNED ORGANIZATIONS
The City, in conjunction with eighteen other local goveonments, is o member of the North Carolina
Municipal Power Agency Number |(Agency). The Agency was formed tu enable municipalities that own
electric distribution systems to finance, construct, own, operate, and maintain generation and transmission
fooi|idcm. Each participating government appoints one cominissioner to the Agency's governing board. The
nineteen members, which receive power from the Agency, have signed power sales agreements to purchase
u specified share of the power generated by the Agency. Except for the power sales purchase requirements,
no |oou| government participant has any obligation, entitlement, or residual iutorooL The City's purchases
of power for the fiscal year ended June 30,20l0 were $37,075'040.
Also, the City, in conjunction with eight Central North Carolina counties and fifty other municipalities
established the Centralina Council ofGovernments (Council). The participating governments established
the Council to coordinate various funding received from {idcro| and State agencies. Each participating
goverment appoints one member to the Council's governing board. The City paid membership fees of
$O.Vq2to the Council during the fiscal year ended June 30,20lO.
61
V�
V7
JOINT VENTURE
The City and the members of the City's fire department each appoint two members to the five-member local
board uf trustees for the Firemen's Relief Fund, The State Insurance Commissioner appoints one additional
member im the local board oftrustees. The Firemen's Relief Fund ia funded hya portion ofthe fire and
lightning insurance premiums that insurers remit to the 8tu1c. The State puoocu these monies to the |nou|
board ufthe Firemen's Relief Fund. The funds are used to assist fire fighters in various ways. The City
obtains an ongoing Ouaociu| benefit from the Fund for the on-behalf ofpayments for an|nrica and fringe
benefits made to members of the City's Dm department by the board of trustees. During the Omcu\ year
ended June 30' 2010' the City reported revenues and expenditures for the payments of $25,149 made
through the Firemen's Relief Fund. The participating governments do not have any equity interest in the
joint venture, on no equity has been mOcc<od in the financial oCa1unenNu at June 30, 2010. The Firemen's
Relief Fund does not issue separate audited financial statements. Instead, the local board of trustees files an
annual finouoiu| report with the State Firemen's Association. This report can be oh<uiucd from the
Association ot Post Office Box 188'FonnvU|e, North Carolina 2?828.
The City has entered into ujoin< venture agreement with Public Service Company of North Carolina,
Incorporated, uSuuth Carolina corporation d/b/a PSNC Eoor8y('PSNC"). The City has agreed \mdesign,
oonoUmci and install natural gum pipeline, o oonhn| station, an emergency connector, various valves and
electronic data control equipment in )rcdeK and Cubunmo Counties which is |nouiud in P8NC"o service area.
These facilities will be "joint taoi|ihos" to be owed by the City subject to P8Y4C`m right to lease capacity in
these facilities. PSNC has agreed to pay the City capacity charges in the amount of $6,000,000 payable in
monthly installments over u period of six (6) years commencing June 30, 2010. The City will be
responsible for providing all operation, muiotcouooc` inspection and repair of the joint facilities. PSNChox
agreed to reimburse the City for its ubuo of the costs of operation and maintenance in proportion tothe
percentage o[PSNC's capacity in the joint &mi|ihuy^ which initially will be 25%. PSNC files SC/\N&'x
uomua| SEC Form lO-K with the North Carolina Utilities Commission. & tu1| copy uf this report can bo
obtained from the Commission's webxi0o in Dmokoi No. O-5, Sub 400/\ or on 8CAN&`s webxitn o1:
. Io addition, PSNC'x financial statements can
be found onPSNC"swm6ui|cat: .
RELATED ORGANIZATION
The seven-member board of the Monroe Housing Authority ixappointed by the City Council and Mayor of
the City of Monroe, The City is accountable for the Housing Authority because it appoints the governing
board; however, the City is not financially accountable for the Housing Authority. The City oyMonroe is
also disclosed as o n:|uiod organization in the notes to the §uouciu| statements for the Monroe Housing
Authority. Complete Duaooiu| statements for the Housing Authority can be obtained from the Authority's
offices a1 Post Office Box 8O5' Monroe, North Carolina 28lll.
RELATED PARTY TRANSACTIONS
The City and its discretely presented component units engaged in the following transactions during the year
ended June J0,20l0:
City m[ Monroe ABC Board:
Payments tn the City for profit distributions $ 210,000
Payments to the City for law enforcement 74,418
Total $ 284,418_
Monroe Tourism Development Authority:
Payment ufu pro-rata portion mf the occupancy tax
by the City tothe Authority $ 285]19
Payment by the Authority to the City for
the Occupancy Tax Project $ 190,079
62
V111. SUMMARY DISCLOSURE OF SIGNIFICANT CONTINGENCIES
Federal and State Assisted Programs
The City has received proceeds from several federal and state grants. Periodic audits of these grants are
required and certain costs may be questioned as not being appropriate expenditures under the grant
agreements. Such audits could result in the refund of grant monies to the grantor agencies. Management
believes that any required refunds will be immaterial. No provision has been made in the accompanying
financial statements for the refund of grant monies.
IX, RECLASSIFICATIONS
During the fiscal year ending June 30, 2010, the City decided to separate the Occupancy Tax Project Fund
from the General Fund for presentation purposes. This required an adjustment of $964,903 to the General
Fund's beginning fund balance. The Occupancy Tax Project Fund is shown as a capital project fund.
63
CITY OF MONROE, NORTH CAROLINA
LAW ENFORCEMENT OFFICERS'SPECIAL SEPARATIONALLOWANCE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
*Reflects changes in actuarial assumptions.
64
Actuarial Accrued
UAAL
Actuarial
Liability (AAL) -
Unfunded
as a
Actuarial
Value of
Projected
AAL
Funded
Covered
Percentage of
Valuation
Assets
Unit Credit
(UAAL)
Ratio
Payroll
Covered Payroll
Date
�(a)
(b)
(b -a)
_ a( lb) _
(c)
* 12/31 /00
-
$ 1,162,961
$ 1,162,961
0.00%
$ 2,574,271
45.18%
12/31/01
-
1,164,941
1,164,941
0.00
2,819,591
41.32
12/31/02
-
1,210,250
1,210,250
0.00
2,777,185
43.58
12/31/03
-
1,295,336
1,295,336
0.00
2,910,965
44.50
12/31/04
-
1,406,395
1,406,395
0.00
2,865,536
49.08
12/31/05
-
1,400,593
1,400,593
0.00
3,368,588
41.58
12/31/06
-
1,442,095
1,442,095
0.00
3,623,857
39.79
12/31/07
-
1,650,670
1,650,670
0.00
3,761,162
43.89
12/31/08
-
1,703,401
1,703,401
0.00
3,933,354
43.31
12/31/09
-
2,184,631
2,184,631
0.00
4,461,289
48.97
*Reflects changes in actuarial assumptions.
64
CITY OF MONROE, NORTH CAROLINA
LAW ENFORCEMENT OFFICERS'SPECIAL SEPARATIONALLOWANCE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF EMPLOYER CONTRIBUTIONS
Year Ended
Annual Required
Percentage
June 30
Contribution Contributed
2000
$ 100,561
123.55%
2001
112,650
9437
2002
113,793
95.10
2003
111,195
99.37
2004
116,909
106.01
2005
121,658
113.76
2006
137,815
119.31
2007
1 38,373
149.68
2008
143,756
122.24
2009
164,695
127.34
2010
174,367
131.97
Notes to the Required Schedules:
The information presented
in the required supplementary
schedules was
determined as part of the actuarial valuations at the dates indicated. Additional
information as of the latest actuarial
valuation follows:
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Cost -of- living adjustments
*Includes inflation at 3.75%
65
December 31, 2009
Projected unit credit
Level percentage of pay closed
21 Years
Market value
5.00%
4.5% to 12.3%
none
Actuarial
Valuation
Date
July 1, 2007
July 1, 2009
CITY OF MONROE, NORTH CAROLINA
THE HEAL TH CARE PLAN OF THE CITY OF MONROE
SUPPLEMENTAL INFORMA TION SCHEDULE OF FUNDING PROGRESS
LAST FISCAL YEAR
66
Actuarial Accrued
UAAL
Actuarial
Liability (AAL) -
Unfunded
as a
Value of
Projected
AAL
Funded
Covered
Percentage of
Assets
Unit Credit
(UAAL)
Ratio
Payroll
Covered Payroll
(a)
(b)
(b -a)
(alb)
(c)
((b -a)lc)
$ -
$ 15,877,000
$ 15,877,000
0.00%
$ 18,700,000
84.9%
-
19,201,000
19,201,000
0.00%
19,927,000
93.4%
66
CITY OF MONROE, NORTH CAROLINA
THE HEAL TH CARE PLAN OF THE CITY OF MONROE
SUPPLEMENTAL INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTION
FISCAL YEAR ENDED JUNE 30, 2009
Year Ended Annual Required Percentage
June 30 Contribution Contributed
2009 $ 1,502,000 23.2°%
2010 1,502,000 26.2%
Notes to the Required Schedules:
The information presented in the required supplementary schedules was determined as part of the actuarial valuations at
the dates indicated. Additional information as of the latest actuarial valuation follows:
Valuation date
Actuarial cost method
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return*
Projected salary increases*
Year of ultimate trend rate
*Includes inflation at
Cost -of- living adjustments
67
July 1, 2009
Projected unit credit
Level percentage of pay closed
30 Years
Market value
4,00%
1.00 % -5,00%
2016
3.75%
none
CITY
OF
�rIONROE
a heritage of progress
Nonmajor Governmental Funds
Special Revenue Funds
Special Revenue Funds are used to account for specific revenues that are
legally restricted to expenditures for specified purposes.
Community Development - This fund is used to account for specific
revenues that are restricted to fund continuing rehabilitation of housing
within certain targeted areas of the City.
Downtown Monroe - This fund is used to account for specific revenues
that are restricted for the purpose of downtown revitalization.
Occupancy Tax - This fund is used to account for specific revenues that
are restricted for the purpose of tourism development.
City Grant Programs - This fund is used to account for specific revenues
that are restricted to fund rehabilitation of homes within the Historic
District, to make grants under the City's economic development incentive
program, and to provide down payment assistance to qualified low and
moderate income individuals to acquire homes.
State Grant Programs - This fund is used to account for specific state
grant revenues that are restricted for housing development in designated
areas of the City.
Capital Projects Funds
Capital Projects Funds account for financial resources to be used for the
acquisition or construction of major capital facilities other than those
financed by proprietary funds.
Capital Reserve - This fund is used to account for money held for future
capital purposes.
Capital Projects - This fund is used to account for the purchase,
renovation, furnishing, or construction of roadway and facility
improvements.
Occupancy Tax Projects - This fund is used to account for tourism related
capital expenditures.
CITY OF MONROE, NORTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FINDS
June 30, 2010
ASSETS
Cash and cash equivalents
Taxes receivable
Accounts receivable
Due from other governments
Due from component unit
Loans receivable
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable and
accrued liabilities
Deferred revenue
Total liabilities
Fund balances:
Reserved for:
State statute
Encumbrances
Unreserved for:
Designated for subsequent
year's expenditures
Undesignated
Total fund balances
Total liabilities and fund balances
Special Revenue
Community
Downtown
Occupancy
City Grant State Grant
Development
Monroe
Tax
Programs Programs
$ 50,245
$ 205,983
$ -
$ 397,777 $ -
-
5,092
28,609
- -
2,008
-
-
- -
20,563
-
-
- -
$ 72,816
$ 211,075
$ 28,609
$ 397,777 $ -
$ - $ 16,857 $ - $ 127,745 $
20,563 5,092 28,609
20,563 21,949 28,609 127,745
2,008 -
- 28,727
- - - 270,032 -
50,245 160,399 - - -
52,253 189,126 - 270,032 -
$ 72,816 $ 211,075 $ 28,609 $ 397,777 $ -
Iff
STATEMENT 1
$ 144,602 $ 185,680 $
54,264 -
198,866 185,680
$ 185,680 $ 330,282
- - 54,264
- 185,680 384,546
2,008
Capital
18,500
201,683
203,691
Project Funds
-
-
Funds
Occupancy
270,032
Total Nonmajor
1,128,344
Capital Tax
1,398,376
Governmental
Total
Projects Projects
Total
Funds
$ 654,005
$ 71,770 $ 1,128,344 $
1,200,114
$ 1,854,119
33,701
- -
-
33,701
2,008
- -
-
2,008
-
183,183 -
183,183
183,183
-
- 18,500
18,500
18,500
20,563
- -
-
20,563
$ 710,277
$ 254,953 $ 1,146,844 $
1,401,797
$ 2,112,074
$ 144,602 $ 185,680 $
54,264 -
198,866 185,680
$ 185,680 $ 330,282
- - 54,264
- 185,680 384,546
2,008
183,183
18,500
201,683
203,691
28,727
-
-
-
28,727
270,032
-
1,128,344
1,128,344
1,398,376
210,644
(113,910)
-
(113,910)
96,734
511,411
69,273
1,146,844
1,216,117
1,727,528
$ 710,277
$ 254,953 $
1,146,844
$ 1,401,797 $
2,112,074
im
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL_ FUNDS
For the Fiscal Year Ended June 30, 2010
REVENUES
Ad valorem taxes
Other taxes and licenses
Restricted intergovernmental
Miscellaneous
Program income
Investment earnings
Total revenues
EXPENDITURES
Current:
Economic and physical development:
Administration
Loan assistance
Incentive grants
Tourism
Capital outlay
Total expenditures
Revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from other funds
Transfers to other funds
Total other financing sources (uses)
Net change in fund balances
Fund balances, beginning
Fund balances, ending
Special Revenue
Community Downtown Occupancy City Grant State Grant
Development Monroe Tax Programs Programs
$ - $ 43,005 $ - $ - $
- 293,937 -
- - 325,500
1,180 - -
7,169 - - -
- 2,627 -
7,169 46,812 293,937 325,500
156 359,096 - -
- - - 26,478
- 1,230,088
- 285,119 -
- 141,758 - -
156 500,854 285,119 1,256,566
7,013 (454,042} 8,818 (931,066}
454,042 - -
- (8,818 (258,119)
454,042 (8,818) (258,119)
7,013 - - (1,189,185) -
45,240 189,126 - 1,459,217 -
$ 52,253 $ 189,126 $ - $ 270,032 $ -
72
STATEMENT 2
Capital
Project Funds
Funds Occupancy Total Nonmajor
Capital Tax Governmental
Total Projects Projects Total Funds
$ 43,005 $ - $ - $ - $ 43,005
293,937 - - - 293,937
325,500 183,183 190,079 373,262 698,762
1,180 - - - 1,180
7,169 - - - 7,169
2,627 1,460 - 1,460 4,087
673,418 184,643 190,079 374,722 1,048,140
359,252 -
8,138 8,138 367,390
26,478 -
- - 26,478
1,230,088 -
- - 1,230,088
285,119 -
- - 285,119
141,758 2,642,990
- 2,642,990 2,784,748
2,042,695 2,642,990
8,138 2,651,128 4,693,823
(1,369,277) (2,458,347} 181,941 (2,276,406) (3,645,683)
454,042
-
- -
454,042
(266,937)
(799,990)
- (799,990)
(1,066,927)
187,105
(799,990)
- (799,990)
(612,885)
(1,182,172)
(3,258,337)
181,941 (3,076,396)
(4,258,568)
1,693,583
3,327,610
964,903 4,292,513
5,986,096
$ 511,411 $ 69,273 $ 1,146,844 $ 1,216,117 $ 1,727,528
73
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
.Tune 30, 2010
ASSETS
Current assets:
Cash and investments
Accounts receivable (net)
Prepaid expenses
Deposits
Total current assets
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities
Total current liabilities
NET ASSETS
Unrestricted
STATEMENT 3
Health and
Workers'
Property and
Dental
Compensation
Liability
Fund
Fund
Fund Total
$ 294,545 $
117,509
80,430
10,072
1,731,337 $
497
387,031 $ 2,412,913
288 118,294
- 80,430
10,072
502,556 1,731,834 387,319 2,621,709
419,985 13,481 6,451 439,917
419,985 13,481 6,451 439,917
$ 82,571 $ 1,718,353 $ 380,868 $ 2,181,792
74
STATEMENT 4
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
OPERATING REVENUES
Interfund charges and employee contributions
Other operating revenue
Total operating revenues
OPERATING EXPENSES
Operating expenses
Health care clinic
Health benefit claims and premiums
Property and liability claims and premiums
Total operating expenses
Operating income
NON OPERATING REVENUES
Investment earnings
Change in net assets
NET ASSETS
Beginning
Ending
Health and Workers' Property and
Dental Compensation Liability
Fund Fund Fund Total
$ 4,957,718 $ - $ 645,000 $ 5,602,718
280,606 - 57 280,663
5,238,324 - 645,057 5,883,381
- 179,418 - 179,418
66,440 - - 66,440
5,584,603 - - 5,584,603
- - 522,008 522,008
5,651,043 179,418 522,008 6,352,469
(412,719) (179,418)
952 3,324
(411,767) (176,094)
123,049 (469,088)
511 4,787
123,560 (464,301)
494,338 1,894,447 257,308 2,646,093
$ 82,571 $ 1,718,353 $ 380,868 $ 2,181,792
75
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
OPERATING ACTIVITIES
Cash received for services
Other operating revenue
Cash paid for goods and services
Net cash provided (used) by operating
activities
INVESTING ACTIVITIES
Investment earnings
Net increase (decrease) in cash and
investments
CASH AND INVESTMENTS
Beginning of year
End of year
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss)
Adjustments to reconcile operating income(loss)
to net cash provided (used) by operating activities:
Change in assets and liabilities
(Increase) decrease in accounts receivable
(Increase) decrease in prepaid expenses
Increase (decrease) in accounts payable and
accrued liabilities
Total adjustments
Net cash provided (used) by operating
activities
STATEMENT 5
Health and
Dental
Fund
Workers'
Compensation
Fund
Property and
Liability
Fund
Total
$ 4,957,718
$ -
$ 645,551 $
5,603,269
1,180,068
-
57
1,180,125
(5,706,606)
(182,080)
(573,304)
(6,461,990)
431,180
(182,080)
72,304
321,404
952
3,324
511
4,787
432,132
(178,756)
72,815
326,191
(137,587)
1,910,093
314,216
2,086,722
$ 294,545
$ 1,731,337 $
387,031 $
2,412,913
$ (412,719)
$ (179,418) $
123,049 $
(469,088)
979,892 (497) 551 979,946
(80,430) - - (80,430)
(55,563) (2,165) (51,296) (109,024)
843,899 (2,662) (50,745) 790,492
$ 431,180 $ (182,080) $ 72,304 $ 321,404
76
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2010
REVENUES
Ad valorem taxes:
Taxes
Penalties and interest
Total
Other taxes and licenses:
Privilege licenses
Gross receipts tax on short-term rental property
Local franchise fees
Motor vehicle tax
Total
Unrestricted intergovernmental:
Local option sales taxes
Telecommunications sales tax
Utility franchise tax
Cablevision franchise fees
Beer and wine tax
State fire fees
ABC profit distribution
Total
Restricted intergovernmental:
Powell Bill allocation
Public safety reimbursement grants
On- behalf payments - Fire and Rescue
ABC Revenue for law enforcement
Resource officer reimbursement
Senior Center grant
Equitable sharing of federally forfeited property
NC Rural Economic Development Center
Total
Sales and services:
Recreational fees
Utilities collection fees
Building permit fees
Cemetery revenues
Sale of fixed assets
Rentals
Other fees
Total
77
Budget
$ 15,825,000
60,000
15,885,000
375,000
40,000
35,000
133,000
583,000
4,200,000
470,000
1,400,000
220,000
140,000
3,500
180,000
6,613,500
914,360
503,582
785,349
2,375,509
835,850
406,000
200,000
30,400
80,000
68,500
150,950
1,771,700
Actual
$ 16,764,727
100,926
16,865,653
367,831
46,279
40,770
124,912
579,792
3,536,581
512,958
1,432,412
288,249
53,171
3,853
216,500
6,043,724
979,429
416,321
38,814
74,418
93,339
4,218
183,824
785,348
2,575,711
681,326
411,605
245,354
45,485
129,144
63,154
164,284
1,740,352
SCHEDULE b
Variance
Positive
(Negative)
$ 939,727
40,926
980,653
(7,169)
6,279
5,770
(8,088)
(3,208)
(663,419)
42,958
32,412
68,249
(86,829)
353
36,500
(569,776)
65,069
(87,261)
38,814
6,418
(6,661)
183,824
(1)
200,202
(154,524)
5,605
45,354
15,085
49,144
(5,346)
13,334
(31,348)
- Continued -
SCHEDULE 6,
Continued
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2010
Variance
Positive
Budget Actual (Negative)
Investment earnings $ 400,000 $ 268,436 $ (131,564)
Miscellaneous:
Payment in lieu of taxes
381,000
425,067
44,067
Donations
24,484
28,692
4,208
Other
35,200
92,998
57,798
Total
440,684
546,757
106,073
Total revenues
28,069,393
28,620,425
551,032
EXPENDITURES
Current:
General government:
Administration
Salaries and employee benefits
2,017,981
1,841,140
176,841
Operating expenditures
1,479,858
1,171,918
307,940
Capital outlay
27,900
32,290
(4,390)
Interdepartmental charges
(1,399,845)
(1,399,845)
-
2,125,894
1,645,503
480,391
Planning and zoning
Salaries and employee benefits
726,732
685,398
41,334
Operating expenditures
79,520
57,299
22,221
806,252
742,697
63,555
Engineering
Salaries and employee benefits
816,137
807,060 9,077
Operating expenditures
84,491
49,462 35,029
Capital Outlay
3,100
3,100 -
Interdepartmental charges
(237,027)
(237,027) -
Interdepartmental charges
666,701
622,595 44,106
Finance
Salaries and employee benefits
1,620,263
1,593,563
26,700
Operating expenditures
366,951
306,358
60,593
Capital outlay
35,000
18,331
16,669
Interdepartmental charges
(1,828,117)
(1,828,117)
-
194,097
90,135
103,962
- Continued-
78
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2010
Operations Center
Salaries and employee benefits
Operating expenditures
Interdepartmental charges
Special appropriations
Operating expenditures
Total
Transportation:
Streets and highways
Salaries and employee benefits
Operating expenditures
Capital outlay
Interdepartmental charges
Total
Public safety:
Police
Salaries and employee benefits
Operating expenditures
Capital outlay
Fire
Salaries and employee benefits
Operating expenditures
Capital outlay
Building standards and code enforcement
Salaries and employee benefits
Operating expenditures
Capital Outlay
Total
Total
UN
SCHEDULE 6,
Continued
Variance
Positive
Budget Actual (Negative)
$ 505,871 $ 493,316 $ 12,555
206,108 164,124 41,984
(576,481) (586,339) 9,858
135,498 71,101 64,397
366,940 313,182 53,758
4,295,382 3,485,213 810,169
1,159,124
1,062,564
96,560
1,419,777
1,171,979
247,798
300,827
297,987
2,840
(434,919)
(507,783)
72,864
2,444,809
2,024,747
420,062
7,008,875
6,875,597
133,278
1,374,662
978,013
396,649
192,000
181,897
10,103
8,575,537
8,035,507
540,030
5,492,725
5,274,079
218,646
502,561
459,558
43,003
19,500
19,639
(139}
6,014,786
5,753,276
261,510
806,587
748,041
58,546
96,883
50,016
46,867
30,009
29,013
996
933,479
827,070
106,409
15,523,802
14,615,853
907,949
- Continued -
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2010
Culture and recreation:
Salaries and employee benefits
Operating expenditures
Capital outlay
Interdepartmental charges
Total
Debt service:
Principal retirement
Interest and other charges
Repayment of advance from other fiords
Total
Total expenditures
Revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from (to) other funds:
Special Revenue Funds
Occupancy Tax Fund
City Grant Programs
Capital Projects Funds
Capital Projects
Downtown Monroe
Stormwater Fund
Airport Fund
Installment purchase obligations issued
Total other financing sources (uses)
FUND BALANCE APPROPRIATED
Net change in fund balance
Fund balance, beginning, as previously stated
Reclassification of Occupancy Tax Project Fund - See Note IX
Fund balance, beginning, restated
Fund balance, ending
SCHEDULE 6,
Continued
Variance
Positive
Budget Actual (Negative)
$ 2,663,751 $ 2,569,507 $ 94,244
1,650,076
1,363,360
286,716
243,577
202,650
40,927
(378,232)
(378,23
-
4,179,172
3,757,285
421,887
1,958,208
1,921,661
36,547
400,000
337,106
62,894
131,485
131,477
8
2,489,693
2,390,244
99,449
28,932,858 26,273,342 2,659,516
(863,465) 2,347,083 3,210,548
50,000
8,818
(41,182)
258,119
258,119
-
799,811
799,990
179
(557,983)
(454,042)
103,941
26,900
26,900
-
(828,318)
(737,262)
91,056
552,000
474,824
(77,176)
300,529
377,347
76,818
562,936
-
(562,936)
$ -
2,724,430
$ 2,724,430
17,866,057
(964,903)
16,901,154
$ 19,625,584
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUNDS
COMMUNITY DEVELOPMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended .tune 30, 2010
REVENUES
Program income
EXPENDITURES
Current:
Economic and physical development:
Administration
Revenues over (under) expenditures
FUND BALANCE APPROPRIATED
Net change in fund balance
Fund balance, beginning
Fund balance, ending
N
Budget Actual
$ 7,000 $ 7,169
500 156
6,500 7,013
• ii
SCHEDULE 7,
Page I of S
Variance
Positive
(Negative)
344
(175)
6,500
7,013 $ 6,325
45,240
$ 52,253
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUNDS
DOWNTOWN MONROE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2010
REVENUES
Ad valorem taxes
Miscellaneous
Investment earnings
Total
EXPENDITURES
Current:
Economic and physical development:
Administration
Capital Outlay
Total
Revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers from other funds:
General Fund
FUND BALANCE APPROPRIATED
Net change in fund balance
Fund balance, beginning
Fund balance, ending
82
SCHEDULE 7,
Page 2 of S
Variance
Positive
Budget Actual (Negative)
$ 41,795 $ 43,005 $ 1,210
- 1,180 1,180
1,085 2,627 1,542
42,880 46,812 3,932
513,800
359,096
154,704
178,527
141,758
36,769
692,327
500,854
191,473
(649,447)
(454,042)
195,405
557,983 454,042 (103,941)
91,464 - (91,464)
189,126
$ 189,126
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUNDS
OCCUPANCY TAX
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES— BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2010
REVENUES
Other taxes and licenses:
Occupancy tax
EXPENDITURES
Current:
Economic and physical development:
Tourism
Revenues over expenditures
OTHER FINANCING USES
Transfers to other funds:
General Fund
Net change in fund balance
Fund balance, beginning
Fund balance, ending
83
SCHEDULE 7,
Page 3 of 5
Variance
Positive
Budget Actual (NegativeL
$ 335,000 $ 293,937 $ (41,063}
285,000 285,119 (119)
50,000 8,818 (41,182)
(50,000) (8,818) 41,182
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUNDS
CITY GRANT PROGRAMS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
From Inception and For the Fiscal Year Ended dune 34, 2010
REVENUES
Restricted intergovernmental
EXPENDITURES
Current:
Economic and physical development:
Loan assistance
Incentive grants
Total expenditures
Revenues over (under) expenditures
Actual
Project Prior Current Total to
Authorization Year Year Date
SCHEDULE 7,
Page 4 of S
Variance
Positive
(Negative)
$ 688,604 $ 113,104 $ 325,500 $ 438,604 $ (250,000)
388,104
113,104
26,478
139,582
248,522
3,359,988
1,759,563
1,230,088
2,989,651
370,337
3,748,092
1,872,667
1,256,566
3,129,233
618,859
(1,189,185) $ 270,032
$ 270,032
(3,059,488)
(1,759,563)
(931,066)
(2,690,629)
368,859
OTHER FINANCING SOURCES (USES)
Transfers from (to) other funds:
General Fund 2,784,488
State Grant Project Fund -
Community Development Fund 275,000
Total other financing sources (uses) 3,059,488
Revenues and other financing sources
over expenditures and other financing use $ -
Fund balance, beginning
3,042,607
(258,119) 2,784,488
-
8,000
- 8,000
8,000
168,173
- 168,173
(106,827)
3,218,780
(258,119) 2,960,661
(98,827)
$ 1,459,217
(1,189,185) $ 270,032
$ 270,032
1,459,217
Fund balance, ending $ 270,032
84
SCHEDULE 7,
Page S of S
CITY OF MONROE, NORTH CAROLINA
CAPITAL PROJECT FUNDS
STATE GRANT PROGRAMS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
From Inception and For the Fiscal Year Ended June 30, 2010
Actual Variance
Project Prior Current Total to Positive
Authorization Year Year Date (Negative)
REVENUES
Restricted intergovernmental (09- C-1999, $ 400,000 $ - $ - $ - $ (400,000)
Total Revenues 400,000 - - - (400,000)
EXPENDITURES
Current:
Economic and physical development:
Program costs (09 -C -1999)
Total expenditures
Revenues over expenditures
Fund balance, beginning
Fund balance, ending
400,000 -
400,000 -
85
400,000
400,000
CITY OF MONROE, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES — BUDGET AND ACTUAL
From Inception And For The Fiscal Year Ended June 30, 2010
REVENUES
Restricted intergovernmental
Miscellaneous
Investment earnings
Total revenues
EXPENDITURES
Capital outlay:
Construction costs capitalized
Construction in progress
Other costs
Total expenditures
Revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from (to) other funds:
General Fund
Parks & Recreation Fund
Installment purchase obligations issued
Total other financing sources (uses)
Revenues and other financing sources
over (under) expenditures and other
financing uses
Fund balance, beginning
Fund balance, ending
SCHEDULE 8,
Page I of 2
Actual Variance
Project Prior Current Total to Positive
Authorization Years Year Date (Negative)
$ 1,985,486 $ 1,298,998 $ 183,183 $ 1,482,181 $ (503,305)
- 588 - 588 588
- 13,539 1,460 14,999 14,999
1,985,486 1,313,125 184,643 1,497,768 (487,718)
4,881,867
3,391,211
1,534,897
4,926,108
(44,241)
1,444,400
47,685
1,047,932
1,095,617
348,783
2,574,253
2,261,463
60,161
2,321,624
252,629
8,900,520
5,700,359
2,642,990
8,343,349
557,171
(6,915,034)
(4,387,234)
(2,458,347)
(6,845,581}
69,453
1,838,595
2,638,405
(799,990) 1,838,415 (180)
784,719
784,719
- 784,719 -
4,291,720
4,291,720
- 4,291,720 -
6,915,034
7,714,844
(799,990) 6,914,854 (180)
$ - $ 3,327,610 (3,258,337) $ 69,273 $ 69,273
86
3,327,610
$ 69,273
CITY OF MONROE, NORTH CAROLINA
CAPITAL PROJECT FUNDS
OCCUPANCY TAX CAPITAL PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
From Inception and For the Fiscal Year Ended June 30, 2010
REVENUES
Restricted intergovernmental
Total Revenues
EXPENDITURES
Current:
Other costs
Total expenditures
Revenues under expenditures
OTHER FINANCING SOURCES
Transfers from other funds:
Pertbrming Arts Center
Revenues and other financing sources
over (under) expenditures
Fund balance, beginning
Fund balance, ending
SCHEDULE 8,
Page 2 of 2
Actual Variance
Project Prior Current Total to Positive
Authorization Year Year Date (Negative)
$ 1,034,362 $ 959,970 $ 190,079 $ 1,150,049 $ 115,687
1,034,362 959,970 190,079 1,150,049 115,687
163,781 109,897 8,138 118,035 45,746
163,781 109,897 8,138 118,035 45,746
870,581 850,073 181,941 1,032,014 161,433
101,814 114,830
$ 972,395 $ 964,903
87
114,830 13,016
181,941 $ 1,146,844 $ 174,449
964,903
$ 1,146,844
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
REVENUES
Operating revenues:
Charges for services:
Water sales
Sewer charges
Water and sewer taps
County waste water charges
Other operating revenues
Total operating revenues
Nonoperating revenues:
Availability fees
Other nonoperating revenues
Investment earnings
Total nonoperating revenues
Total revenues
FUND BALANCE APPROPRIATED
Total revenues
88
011awflam
Variance
Positive
Budget Actual (Negative)
$ 4,840,544 $
5,088,813 $
248,269
6,173,537
6,256,526
82,989
24,069
131,972
107,903
573,015
597,147
24,132
11,611,165
12,074,458
463,293
230,080
290,656
60,576
11,841,245
12,365,114
523,869
224,550
419,257
194,707
7,395
1,106
(6,289)
431,446
259,809
(171,637)
663,391
680,172
16,781
12,504,636
13,045,286
540,650
67,799 - (67,799)
$ 12,572,435 $ 13,045,286 $ 472,851
- Continued -
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
EXPENDITURES
Distribution system:
Salaries and employee benefits
Operating expenditures
Total
Water filter plant:
Salaries and employee benefits
Operating expenditures
Total
Waste treatment plant:
Salaries and employee benefits
Operating expenditures
Total
Debt service:
Principal retirement
Interest and other charges
Total
Capital outlay
Total expenditures
OTHER FINANCING USES
Transfers to other funds:
Water and Sewer Capital Projects Fund
Total other financing uses
Total expenditures and other financing uses
RZ
SCHEDULE 9,
Continued
Variance
Positive
Budget Actual (Negative)
$ 2,200,717 $
2,165,001 $
35,716
2,243,914
1,888,644
355,270
4,444,631
4,053,645
390,986
640,889
640,891
(2)
2,113,594
1,722,018
391,576
2,754,483
2,362,909
391,574
886,760
880,812
5,948
1,714,577
1,647,440
67,137
2,601,337
2,528,252
73,085
1,627,925
1,627,732
193
683,130
681,495
1,635
2,311,055
2,309,227
1,828
288,734
149,026
139,708
12,400,240
11,403,059
997,181
172,195 172,195 -
172,195 172,195 -
$ 12,572,435 $ 11,575,254 $ 997,181
- Continued -
CITY OFMONROE, NORTH CAROLINA
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual:
Total revenues
Total expenditures and other financing uses
Revenues and other financing sources over
expenditures and other financing uses
Reconciling items:
Debt principal
Amortization of deferred loss on refunding
Amortization of bond premimurn
Amortization of bond issuance costs
Capital outlay
Net book value of assets disposed
Transfer to Water and Sewer Capital Projects Funds
Net expense from capital projects consolidation
Increase in compensated absences
Increase in OPEB liability
Depreciation and amortization
Total reconciling items
Change in net assets
a
SCHEDULE 9,
Continued
$ 13,045,286
11,575,254
1,470,032
1,627,732
(9,824)
4,027
(4,070)
149,026
(35,930)
172,195
(294,765)
(14,128)
(139,205)
(1,826,163)
(371,105)
$ 1,098,927
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER CAPITAL PROJECTS FUNDS
CAPITAL RESERVE
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
OTHER FINANCING SOURCES (USES)
Transfers from other funds:
Water and Sewer Capital Projects Funds
Increase in fund balance
Total other financing sources (uses)
Fund balance, beginning
Fund balance, ending
m
Budget
S -
SCHEDULE 10,
Page I of 2
Variance
Positive
Actual (Negative)
3,318,739
$ 3,318,739
SCHEDULE 1 P,
Page 2 of 2
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGETAND ACTUAL (NON -GAAP)
From Inception and For the Fiscal Year Ended June 30, 2010
Actual Variance
Project Prior Current Total to Positive
Authorization Years Year Date (Negative)
REVENUES
Investment earnings $ - $ 178,260 $ 2,478 $ 180,738 $ 180,738
EXPENDITURES
Construction costs capitalized
19,073,046
6,495,273
133,670
6,628,943
12,444,103
Construction in progress
26,739,082
537,368
601,480
1,138,848
25,600,234
Other costs
360,629
283,691
297,243
580,934
(220,305)
Total expenditures
46,172,757
7,316,332
1,032,393
8,348,725
37,824,032
Revenues over (under) expenditures
(46,172,757)
(7,138,072)
(1,029,915)
(8,167,987)
38,004,770
OTHER FINANCING SOURCES (USES)
Transfers from (to) other funds:
Water and Sewer Fund
6,121,695
5,949,500
172,195
6,121,695
-
Water and Sewer Capital Reserve Fund
50,000
50,000
-
50,000
-
Proceeds from revenue bonds
40,001,062
5,201,062
-
5,201,062
(34,800,000)
Total other financing sources (uses)
46,172,757
11,200,562
172,195
11,372,757
(34,800,000)
Revenues and other financing sources
over (under) expenditures and other
financing uses
$ - $ 4,062,490 $ (857,720) $ 3,204,770 $ 3,204,770
O
CITY OF MONROE, NORTH CAROLINA
ELECTRIC FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
REVENUES
Operating revenues:
Charges for services:
Electric power sales
Sales tax
Total
Other operating revenues
Total operating revenues
Nonoperating revenues:
Rate stabilization funds
Power agency funding
Other nonoperating revenues
Investment earnings
Total nonoperating revenues
Total revenues
OTHER FINANCING SOURCES
Installment purchase obligations issued
Repayment of advance from General Fund
Repayment of advance to Stormwater Fund
Repayment of advance to Natural Gas Fund
Repayment of advance from Airport Fund
Total other financing sources
FUND BALANCE APPROPRIATED
Total revenues and other financing sources
93
SCHEDULE 11
Variance
Positive
Budget Actual (Negative)
$ 44,242,205 $
41,905,931 $
(2,336,274)
1,327,000
989,782
(337,218)
45,569,205
42,895,713
(2,673,492)
390,500
611,838
221,338
45,959,705
43,507,551
(2,452,154)
-
60,360
60,360
-
255,852
255,852
110,000
765,928
655,928
855,396
378,690
(476,706)
965,396
1,460,830
495,434
46,925,101 44,968,381 (1,956,720)
810,000
131,485
39,518
208,356
6,562,913
7,752,272
1,001 ,738 191,738
131,477 (8)
39,518 -
208,356 -
6,562,913 -
7,944,002 191,730
4,206,208 - (4,206,208)
$ 58,883,581 $ 52,912,383 $ (5,971,198)
- Continued -
CITY OF MONROE, NORTH CAROLINA
ELECTRIC FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
EXPENDITURES
Operations:
Salaries and employee benefits
Operating expenditures
Total
Electric power purchases
Debt service:
Principal retirement
Interest and other charges
Total
Capital outlay
Total expenditures
OTHER FINANCING USES
Transfers to other funds
Electric Capital Projects Funds
Advance to Airport Fund
Total other financing uses
Total expenditures and other financing uses
.,
Budget Actual
SCHEDULE 11,
Continued
Variance
Positive
(Negative)
$ 2,271,344 $ 1,091,127 $ 1,180,217
6,002,047 2,338,350 3,663,697
8,273,391 3,429,477 4,843,914
38,670,400 37,075,040 1,595,360
966,350
949,587
16,763
1,105,495
1,118,097
(12,602)
2,071,845
2,067,684
4,161
1,056,087 2,438,957 (1,382,870)
50,071,723 45,011,158 5,060,565
1,290, 522
1,290,522 -
7,521,336
7,521,336 -
8,811,858
8,811,858 -
$ 58,883,581 $ 53,823,016 $ 5,060,565
- Continued -
CITY OF MONROE, NORTH CAROLINA
ELECTRIC FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
RUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual:
Total revenues and other financing sources
Total expenditures and other financing uses
Revenues and other financing sources under
expenditures and other financing uses
Reconciling items:
Debt principal
Installment purchase obligations issued
Amortization of deferred loss on refunding
Amortization of bond premimum
Amortization of bond issuance costs
Capital outlay
Net book value of assets disposed
Payments received on note receivable
Advance to Airport Fund
Accrued interest on advance to Airport Fund
Repayment of advance to Airport Fund
Repayment of advance to Natural Gas Fund
Repayment of advance to Stormwater Fund
Repayment of advance to General Fund
Transfer to Electric Capital Projects Funds
Net revenue from capital projects consolidation
Increase in compensated absences
Increase in OPEB liability
Depreciation and amortization
Total reconciling items
Change in net assets
95
SCHEDULE II,
Continued
$ 52,912,383
(910,633)
949,587
(1,001,738)
(18,193)
16,917
(17,307)
2,438,957
(267,212)
(503,433)
7,521,336
37,607
(6,476,771)
(88,356)
(33,908)
(82,086)
1,290,522
(91,913)
(14,330)
(63,704)
(2,063,710)
1,532,265
$ 621,632
SCHEDULE 12
CITY OF MONROE, NORTH CAROLINA
ELECTRIC CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
From Inception and For the Fiscal Year Ended June 30, 2010
EXPENDITURES
Construction costs capitalized
9,731,061
8,845,181
Actual
9,046,881
Variance
Construction in progress
Project
Prior
Current
Total to
Positive
Other costs
Authorization
Years
Year
Date
(Negative)
REVENUES
52,598,614
27,411,318
3,368,337
30,779,655
21,818,959
Power agency funding
$ 5,805,850 $
5,592,648
$ -
$ 5,592,648
$ (213,202)
Miscellaneous
-
6
-
6
6
Investment earnings
-
464,324
1,740
466,064
466,064
5,805,850
6,056,978
1,740
6,058,718
252,868
EXPENDITURES
Construction costs capitalized
9,731,061
8,845,181
201,700
9,046,881
684,180
Construction in progress
35,840,043
18,213,055
3,072,984
21,286,039
14,554,004
Other costs
7,027,510
353,082
93,653
446,735
6,580,775
Total expenditures
52,598,614
27,411,318
3,368,337
30,779,655
21,818,959
Revenues over (under) expenditures
(46,792,764)
(21,354,340)
(3,366,597)
(24,720,937)
22,071,827
OTHER FINANCING SOURCES
Transfers from other funds:
Electric Fund
24,350,989
23,060,463
1,290,522
24,350,985
(4)
Natural Gas Fund
700,000
700,000
-
700,000
-
Proceeds from revenue bonds
21,741,775
21,741,775
-
21,741,775
-
46,792,764
45,502,238
1,290,522
46,792,760
(4)
Revenues and other financing sources
over expenditures
$ - $
24,147,898
$ (2,076,075)
$ 22,071,823
$ 22,071,823
96
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
REVENUES
Operating revenues:
Charges for services:
Natural gas sales
Other operating revenues
Total operating revenues
Nonoperating revenues:
Availability fees
Other nonoperating revenues
Investment earnings
Total nonoperating revenues
Total revenues
OTHER FINANCING SOURCES
Installment purchase obligations issued
Total other financing sources
FUND BALANCE APPROPRIATED
Total revenues and other financing sources
97
Budget
SCHEDULE I3
Variance
Positive
Actual (Negative)
$ 20,157,300 $
18,240,065 $
(1,917,235)
-
9,964
9,964
20,157,300
18,250,029
(1,907,271)
-
97,363
97,363
97,363
2,007,623
1,910,260
119,605
264,053
144,448
216,968
2,369,039
2,152,071
20,374,268
20,619,068
244,800
64,000
71,800
7,800
64,000
71,800
7,800
5,029,158
(5,029,158)
$ 25,467,426 $ 20,690,868 $ (4,776,558)
- Continued -
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
EXPENDITURES
Operations:
Salaries and employee benefits
Operating expenditures
Total
Natural gas purchases
Debt service:
Principal retirement
Interest and other charges
Total
Capital outlay
Total expenditures
OTHER FINANCING USES
Transfers to other funds:
Repayment of Advance from Electric Fund
Natural Gas Capital Projects Fund
Total other financing uses
Total expenditures and other financing uses
SCHEDULE 13,
Continued
88,356
88,356
Variance
3,688,000
3,776,356
Positive
Budget
Actual
(Negative)
$ 883,492 $
591,042
$ 292,450
2,243,060
1,666,044
577,016
3,126,552
2,257,086
869,466
15,300,000
12,493,870
2,806,130
261,860
254,539
7,321
2,079,471
2,087,722
(8,251)
2,341,331
2,342,261
(930)
923,187
928,343
(5,156)
21,691,070
18,021,560
3,669,510
88,356
88,356
3,688,000
3,688,000
3,776,356
3,776,356
$ 25,467,426 $ 21,797,916 $ 3,669,510
- Continued -
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual:
Total revenues and other financing sources
Total expenditures and other financing uses
Revenues and other financing sources over
expenditures and other financing uses
Reconciling items:
Debt principal
Installment purchase obligations issued
Amortization of deferred loss on refunding
Amortization of bond premimum
Amortization of bond issuance costs
Capital outlay
Principal payment on advance from Electric Fund
Issuance of note receivable to outside party
Payment from outside party on note receivable
Transfer to Natural Gas Capital Projects Fund
Net income from capital projects consolidation
Reimbursement from outside party for construction in progress
Increase in compensated absences
Increase in OPEB liability
Depreciation and amortization
Total reconciling items
Change in net assets
99
SCHEDULE 13,
Continued
$ 20,690,868
21,797,916
(1,1 07,048)
254,539
(71,800)
(8,098)
2,844
(37,402)
928,343
88,356
6,000,000
(97,363)
3,688,000
(144,215)
(2,000,000)
(12,198)
(30,672)
(479,631)
8,080,703
$ 6,973,655
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
From Inception and For the Fiscal Year Ended June 30, 2010
REVENUES
Miscellaneous
Investment earnings
Total revenues
EXPENDITURES
Construction costs capitalized
Construction in progress
Other costs
Total expenditures
Revenues over (under) expenditures
OTHER FINANCING SOURCES
Transfers from other funds:
Natural Gas Fund
Electric Fund
Certificates of Participation
Proceeds from revenue bonds
Total other financing sources
Revenues and other financing sources
over (under) expenditures
SCHEDULE 14
(55,522,439) (30,055,457) (15,508,894) (45,564,351) 9,958,088
16,913,000
13,225,000
Actual
3,330,000
Variance
Project
Prior
Current
Total to
Positive
Authorization
Years
Year
Date
(Negative)
$ -
$ 5,933
$ 1,002
$ 6,935
$ 6,935
-
146,097
13,936
160,033
160,033
-
152,030
14,938
166,968
166,968
2,007,711
832,474
566,486
1,398,960
608,751
53,135,228
29,132,805
14,798,193
43,930,998
9,204,230
379,500
242,208
159,153
401,361
(21,861)
55,522,439
30,207,487
15,523,832
45,731,319
9,791,120
(55,522,439) (30,055,457) (15,508,894) (45,564,351) 9,958,088
16,913,000
13,225,000
3,688,000 16,913,000
3,330,000
3,330,000
- 3,330,000
31,628,998
31,628,998
- 31,628,998
3,650,441
3,650,441
- 3,650,441
55,522,439
51,834,439
3,688,000 55,522,439
$ - $ 21,778,982 $(11,820,894) $ 9,958,088 $ 9,958,088
m
CITY OF MONROE, NORTH CAROLINA
AQUA TICSAND FITNESS CENTER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
B UDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
REVENUES
Operating revenues:
Charges for services:
Recreational fees
Other operating revenues
Total operating revenues
Nonoperating revenues:
Other nonoperating revenues
Investment earnings
Total nonoperating revenues
Total revenues
FUND BALANCE APPROPRIATED
Total revenues
OTHER FINANCING SOURCES
Transfers from other funds:
MAFC Capital Projects
Total other financing uses
Total revenues and other financing uses
M
Budget
SCHEDULE 15
Variance
Positive
Actual (Negative)
$ 3,727,000 $
3,763,120 $
36,120
154,500
136,940
(17,560)
3,881,500
3,900,060
18,560
-
6,950
6,950
60,900
23,853
(37,047)
60,900
30,803
(30,097)
3,942,400 3,930,863 (11,537)
63,269
(63,269)
4,005,669 3,930,863 (74,806)
4,137 4,137
4,137 4,137
$ 4,009,806 $ 3,935,000 $ (74,806)
- Continued -
SCHEDULE 15,
Continued
CITY OF MONROE, NORTH CAROLINA
AQUA TICS AND FITNESS CENTER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
- Continued -
no
Variance
Positive
Budget
Actual
(Negative)
EXPENDITURES
Operations:
Salaries and employee benefits
$ 1,712,572 $
1,614,853 $
97,719
Operating expenditures
1,738,916
1,422,668
316,248
Total
3,451,488
3,037,521
413,967
Debt service:
Principal retirement
407,886
407,886
-
Interest and other charges
64,764
64,765
(1)
Total
472,650
472,651
(1)
Capital outlay
85,668
92,385
(6,717)
Total expenditures
$ 4,009,806 $
3,602,557 $
407,249
- Continued -
no
CITY OF MONROE, NORTH CAROLINA
AQUATICS AND FITNESS CENTER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON-GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual:
Total revenues and other financing sources
Total expenditures
Revenues and other financing sources over
expenditures and other financing uses
Reconciling items:
Debt principal
Capital outlay
Increase in compensated absences
Transfer from MAFC Capital Project Fund
Increase in OPEB liability
Depreciation and amortization
Total reconciling items
Change in net assets
UR
SCHEDULE 15,
Continued
3,935,000
3,602,557
332,443
407,886
92,385
(2,749)
(4,137)
(49,548)
(262,585)
181,252
513,695
CITY OF MONROE, NORTH CAROLINA
AQUATICS AND FITNESS CENTER CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
From Inception and For the Fiscal Year Ended June 30, 2010
REVENUES
Miscellaneous
EXPENDITURES
Other costs
Total expenditures
Revenues over (under) expenditures
SCHEDULE 16
Actual Variance
Project Prior Current Total to Positive
Authorization Years Year Date (Negative)
$ - $ 733 $
419,863 420,596
419,863 420,596
(419,863) (419,863}
- $ 733 $ 733
420,596 (733)
- 420,596 (733)
(419,863) -
OTHER FINANCING SOURCES (USES)
Transfers (to) from other funds:
Aquatics and Fitness Center Fund 419,863 424,000 (4,137) 419,863 -
Total other financing sources 419,863 424,000 (4,137) 419,863 -
Revenues and other financing sources
over (under) expenditures $ - $ 4,137 $ (4,137) $ - $ -
1E
CITY OF MONROE, NORTH CAROLINA
AIRPORT FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 34, 2010
REVENUES
Operating revenues:
Charges for services:
Leases
Flowage fee
Sales of fuel
Total
Other operating revenues
Total operating revenues
OTHER FINANCING SOURCES
Transfers from other funds:
General Fund
Advance from Electric Fund
Installment purchase obligations issued
Total other financing sources
FUND BALANCE APPROPRIATED
Total revenues and other financing sources
In"
SCHEDULE 17
Variance
Positive
Budget Actual (Negative)
$ 260,305 $ 283,503 $ 23,198
600 - (600)
1,5,21,200 1,183,345 (337,855)
1,782,105 1,466,848 (315,257)
24,150 25,756 1,606
1,806,255 1,492,604 (313,651)
828,318
737,262 (91,056)
7,521,336
7,521,336 -
450,000
148,656 (301,344)
8,799,654 8,407,254 (392,400)
16,807 - (16,807)
$ 10,622,716 $ 9,899,858 $ (722,858)
- Continued -
CITY OF MONROE, NORTH CAROLINA
AIRPORT FUND
SCHED ULE OF REVENUES AND EXPENDITURES --
BUDGETAND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
EXPENDITURES
Operations:
Salaries and employee benefits
Operating expenditures
Total
Debt service:
Principal retirement
Interest and other charges
Total
Capital outlay
Total expenditures
OTHER FINANCING USES
Transfers from other funds:
Repayment of advance from Electric Fund
Total other financing sources
Total expenditures and other financing sources
1•
SCHEDULE 17,
Continued
6,476,771 6,476,771
6,476,771 6,476,771
$ 10,622,716 $ 9,899,861 $ 722,855
- Continued -
Variance
Positive
Budget
Actual
(Negative)
$ 524,315 $
519,478
$ 4,837
1,925,841
1,563,435
362,406
2,450,156
2,082,913
367,243
496,925
496,652
273
686,107
685,465
642
1,183,032
1,182,117
915
512,757
158,060
354,697
4,145,945
3,423,090
722,855
6,476,771 6,476,771
6,476,771 6,476,771
$ 10,622,716 $ 9,899,861 $ 722,855
- Continued -
CITY OF MONROE, NORTH CAROLINA
AIRPORT FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON-GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual:
Total revenues and other financing sources
Total expenditures
Revenues and other financing sources over
expenditures and other financing uses
Reconciling items:
Debt principal
Amortization of bond issuance costs
Repayment of principal on original advance from Electric Fund
Capital outlay
Installment purchase obligations issued
Net expense from capital projects consolidation
Advance from Electric Fund
Accrued interest on advance from Electric Fund
Increase in compensated absences
Increase in OPEB liability
Depreciation and amortization
Total reconciling items
Change in net assets
107
SCHEDULE 17,
Continued
9,899,858
9,899,861
496,652
(7,705)
6,476,771
158,060
(148,656)
474,863
(7,521,336)
(37,591)
(15,357)
(25,953)
(641,138)
(791,390)
(791,393)
CITY OF MONROE, NORTH CAROLINA
AIRPORT CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
From Inception and For the Fiscal Year Ended June 30, 2010
REVENUES
Restricted intergovernmental
Investment earnings
Total revenues
EXPENDITURES
Construction costs capitalized
Construction in progress
Other costs
Total expenditures
Revenues over (under) expenditures
OTHER FINANCING SOURCES (USES)
Transfers from (to) other funds:
General Fund
Airport Fund
Proceeds from revenue bonds
Installment purchase obligations issued
Total other financing sources (uses)
SCHEDULE 18
322,537
322,537
Actual
6,476,771
Variance
Project
Prior
Current
Total to
Positive
Authorization
Years
Year
Date
(Negative)
$ 4,944,069
$ 300,000
$ 483,552
$ 783,552 $
(4,160,517)
-
392,160
17,885
410,045
410,045
4,944,069
692,160
501,437
1,193,597
(3,750,472)
5,276,437
3,259,851
672,499
3,932,350
1,344,087
19,919,680
2,772,577
5,663,713
8,436,290
11,483,390
50,000
-
26,574
26,574
23,426
25,246,117
6,032,428
6,362,786
12,395,214
12,850,903
(20,302,048)
(5,340,268)
(5,861,349)
(11,201,617)
9,100,431
322,537
322,537
- 322,537 -
6,476,771
6,476,771
- 6,476,771 -
12,942,740
12,942,740
- 12,942,740 -
560,000
-
- - (560,000)
20,302,048
19,742,048
- 19,742,048 (560,000)
Revenues and other financing sources over
(under) expenditures and other financing uses $ - $ 14,401,780 $ (5,861,349) $ 8,540,431 $ 8,540,431
1
CITY OF MONROE, NORTH CAROLINA
STORM WATER FUND
SCHEDULE OF REVENUESAND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
REVENUES
Operating revenues:
Charges for services:
Storm water receipts
Total operating revenues
Nonoperating revenues:
Other nonoperating revenues
Investment earnings
Total nonoperating revenues
Total revenues
FUND BALANCE APPROPRIATED
Total revenues
109
Budget Actual
SCHEDULE 19
Variance
Positive
(Negative)
$ 1,615,000 $ 1,775,649 $ 160,649
1,615,000 1,775,649 160,649
- 39 39
3,000 4,071 1,071
3,000 4,110 1,110
1,618,000 1,779,759 161,759
77,680
(77,680)
$ 1,695,680 $ 1,779,759 $ 84,079
- Continued -
CITY OF MONROE, NORTH CAROLINA
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
EXPENDITURES
Operations:
Salaries and employee benefits
Reimbursements
Operating expenditures
Total
Debt service:
Principal retirement
Interest and other charges
Total
Capital outlay
Total expenditures
OTHER FINANCING USES
Transfers to other funds:
General Fund
Total other financing uses
Total expenditures and other financing uses
SCHEDULE 19,
Continued
72,110 71,378 732
10,000 10,465 (465}
82,110 81,843 267
168,803 167,444 1,359
1,668,780 1,464,737 204,043
26,900 26,900 -
26,900 26,900 -
$ 1,695,680 $ 1,491,637 $ 204,043
- Continued -
Variance
Positive
Budget
Actual
(Negative)
$ 539,537 $
495,704
$ 43,833
423,155
423,155
-
455,175
296,591
158,584
1,417,867
1,215,450
202,417
72,110 71,378 732
10,000 10,465 (465}
82,110 81,843 267
168,803 167,444 1,359
1,668,780 1,464,737 204,043
26,900 26,900 -
26,900 26,900 -
$ 1,695,680 $ 1,491,637 $ 204,043
- Continued -
CITY OF MONROE, NORTH CAROLINA
STORM WA TER FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON-GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual:
Total revenues and other financing sources
Total expenditures and other financing uses
C,
Revenues and other financing sources over
expenditures and other financing uses
Reconciling items:
Debt principal
Principal payment on advance from Electric Fund
Capital outlay
Increase in compensated absences
Increase in OPEB liability
Depreciation and amortization
Total reconciling items
Change in net assets
111
SCHEDULE 19,
Continued
1,779,759
1,491,637
288,122
37,470
33,908
167,444
(9,635)
(23,594)
(79,912)
125,681
$ 413,803
CITY OF MONROE, NORTH CAROLINA
SOLID WASTE FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
REVENUES
Operating revenues:
Charges for services:
Refuse collection fees
Total
Other operating revenues
Total operating revenues
Nonoperating revenues:
Investment earnings
Total nonoperating revenues
Total revenues
FUND BALANCE APPROPRIATION
Total revenues and other financing uses
112
SCHEDULE 20
Variance
Positive
Budget Actual (Negative)
$ 2,850,997 $
2,813,609 $
(37,388)
2,850,997
2,813,609
(37,388)
20,000
25,405
5,405
2,870,997
2,839,014
(31,983)
3,576
4,280
704
3,576
4,280
704
2,874,573
2,843,294
(31,279)
64,150
-
64,150
$ 2,938,723 $ 2,843,294 $ 32,871
- Continued -
EXPENDITURES
Operations:
Salaries and employee benefits
Operating expenditures
Total
Total expenditures
CITY OF MONROE, NORTH CAROLINA
SOLID WASTE FUND
SCHEDULE OF REVENUESAND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
113
Budget
SCHEDULE 20,
Continued
Variance
Positive
Actual (Negative)
$ 56,499 $ 56,492 $ 7
2,882,224 2,645,049 237,175
2,938,723 2,701,541 237,182
$ 2,938,723 $ 2,701,541 $ 237,182
- Continued -
CITY OF MONROE, NORTH CAROLINA
SOLID WASTE FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
BUDGET AND ACTUAL (NON -GAAP)
For the Fiscal Year Ended June 30, 2010
Reconciliation from budgetary basis (modified accrual) to full accrual
Total revenues
Total expenditures
Revenues and other financing sources over expenditures
114
SCHEDULE 20,
Continued
2,843,294
2,701,541
$ 141,753
CITY OF MONROE, NORTH CAROLINA
HEALTHAND DENTAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES (NON -GAAP)
FOR THE YEAR ENDED JUNE 30, 2010
REVENUES
Operating revenues
Interfund charges and employee contributions
Other operating revenue
Nonoperating revenues
Investment earnings
Total revenues
EXPENDITURES
Operating expenditures
Health care clinic
Health benefit claims and premiums
Total expenditures
Revenues over expenditures
In
SCHEDULE 21
Variance -
Favorable
Budget Actual (Unfavorable)
$ 4,564,383 $ 4,957,718 $ 393,335
- 280,606 280,606
6,000 952 (5,048)
4,570,383 5,2391276 668,893
97,000 66,440 30,560
4,473,383 5,584,603 (1,111,220)
4,570,383 5,651,043 (1,080,660)
$ - $ (411,767) $ (411,767)
SCHEDULE 22
CITY OF MONROE, NORTH CAROLINA
WORKERS' COMPENSATION FUND
SCHEDULE OF REVENUES AND EXPENDITURES (NON -GAAP)
FOR THE YEAR ENDED JUNE 30, 2010
FUND BALANCE APPROPRIATED
Revenues under expenditures
116
300,000 300,000
$ - $ (176,094) $ (176,094)
Variance -
Favorable
Budget
Actual
(Unfavorable)
REVENUES
Nonoperating revenues
Investment earnings
$ 19,200 $
3,324
$ (15,876)
Total revenues
19,200
3,324
(15,876)
EXPENDITURES
Operating expenditures
Workers' compensation claims and premiums paid
319,200
179,418
139,782
Total expenditures
319,200
179,418
139,782
FUND BALANCE APPROPRIATED
Revenues under expenditures
116
300,000 300,000
$ - $ (176,094) $ (176,094)
CITY OF MONROE, NORTH CAROLINA
PROPER TYAND CASUALTY FUND
SCHEDULE OF REVENUES AND EXPENDITURES (NON -GAAP)
FOR THE YEAR ENDED JUNE 30, 2014
REVENUES
Operating revenues
Interfund charges and employee contributions
Other operating revenue
Nonoperating revenues
Investment earnings
Total revenues
EXPENDITURES
Operating expenditures
Property and liability claims and premiums
Total expenditures
Revenues over expenditures
117
Budget
$ 645,000 $
SCHEDULE 23
Variance -
Favorable
Actual (Unfavorable)
645,000 $ -
57 57
5,000 511 (4,489)
650,000 645,568 (4,432)
650,000 522,008 127,992
650,000 522,008 127,992
$ - $ 123,560 $ 123,560
SCHEDULE 24
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF AD VALOREM TAXES RECEIVABLE
June 30, 2010
Ad valorem taxes receivable
Uncollected
$
Uncollected
Balance
Collections
Balance
Fiscal Year
June 30, 2009
Additions And Credits
June 30, 2010
2009-2010
$ -
$ 16,872,372 $ 16,292,046
$ 580,326
2008-2009
562,074
- 383,305
178,769
2007-2008
180,955
- 65,723
115,232
2006-2007
101,901
- 20,909
80,992
2005-2006
57,693
- 29,305
28,388
2004-2005
24,016
- 3,263
20,753
2003-2004
18,412
- 2,608
15,804
2002-2003
19,318
- 1,035
18,283
2001 -2002
8,773
- 125
8,648
2000-2001
16,118
- 9
16,109
1999-2000
8,629
- 8,629
-
$ 997,889
$ 16,872,372 $ 16,806,957
Ad valorem taxes receivable
$
1,063,304
Municipal Service
District - Downtown
Reconcilement with revenues:
General Fund
Monroe Fund
Total
Ad valorem taxes - General fund
$ 16,822,897
$ 42,756 $
16,865,653
Amounts written off per statute of limitations
8,629
-
8,629
Refunds, releases of prior years' taxes
33,545
56
33,601
Interest and advertising cost recovery
(100,737)
(189)
(1 00,926)
Total collections and credits
$ 16,764,334
$ 42,623 $
16,806,957
118
CITY OF AIONROE, NORTH CAROLINA
ANALYSIS OF CURRENT TAX LEVY
CITY- WIDE LEVY
For the Fiscal Year Ended June 30,J0/0
City - Wide
Property Tnm|
Vuluudvo _Rate _Levy__
SCHE0ULEJ5
Total Lev
Property
excluding
registered Registered
Motor Motor
Original levy:
Property taxed mcurrent
year's rate $l22V548,092 0.495 $ 16,016329 $ 15,501.114 $ 515.215
Municipal 9ovinoDistrict 21.130,212 0.200 42.485 42,485 '
Registered motor vehicles taxed
at prior year's rate 77649361 431,082 ' 431,082
Total 3327327665 16489896 15,543599 946,297
Public Utility Allocation:
City wide
59,385,679
0.495
297,909
297,909
-
Municipal Service District
1,338,873
0.200
2,678
2,678
-
Discoveries
City wide
28.252.507
0.495
159,005
159.605
-
Municipal Service District
97.030
0.200
196
196
-
Abatements
City wide
(17.370,368)
0.495
(77'910)
(54.397)
(23.513)
Municipal Service District
0.200
-
Total property valuation
Net levy
10.872'372
15.949.588
922.784
Uncollected taxes at June 30.20|0
(580.326)
(427.760)
(152.566)
Current year's taxes collected
$ 16.292.046
15,521.828
� 77O,Z|D
Current levy collection percentage
96.56%
9732%
87.4796
Secondary Market Disclosures:
Assessed Valuation:
Assessment Ratio'
Real property
$2.]86.288.930
Motor vehicle property
186,438,906
Personal property
765.537.033
Public Service Cnmpemieuu
60,724,552
Total Assessed Valuation
3,398,989.421
Tax Rate per $|O0
0.495
Levy (includes discoveries, releases and ubntcmcnta)/
S 16824998
Distribution of levy:
General Fund $ 16,827,015
Municipal Service District - Downtown Monroe Fund 45,357
'Percentage vf appraised value has been established hystatute.
2 Valuation of railroads, telephone companies and other utilities as determined by the
North Carolina Property Tax Commission.
` The levy includes interest and pnndbo,.
CITY
OF
�rIONROE
a heritage of progress
Statistical Section
This part of the City of Monroe's comprehensive annual financial report presents
detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information
says about the City's overall financial health.
Page
Financial Trends — These tables contain trend information to
help the reader understand how the City's financial performance
and well being have been changed over time...... 123
Revenue Capacity — These tables contain information to help the
reader assess the City's most significant local revenue source, the
property tax..... 128
Debt Capacity — These tables present information to help the
reader assess the affordability of the City's current levels of
outstanding debt and the City's ability to issue additional debt in
the future..... 132
Demographic and Economic Information — These tables offer
demographic and economic indicators to help the reader
understand the environment within which the City's financial
activities take place..... 137
Operation Information — These tables contain service and
infrastructure data to help the reader understand how the
information in the City's financial report relates to the services the
City provides and the activities..... 139
Sources: Unless otherwise noted, the information in these tables is derived
from the comprehensive annual financial reports to the relevant year.
CITY
OF
�rIONROE
a heritage of progress
Governmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business -type activities
Invested in capital assets, net of related debt
Unrestricted
Total business -type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total primary government net assets
CITY OF MONROE, NORTH CAROLINA
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(in thousands of dollars)
FISCAL YEAR
TABLE I
2001 2002 2003
2004
2005
2006
2007
2008
2009
2010
$ $ $ 72,069
$ 73,696
$ 74,193
$ 73,177
$ 71,568
$ 73,467
$ 74,438
$ 73,296
629
538
624
239
144
45
2
255
17,884
19,638
19,717
18,683
20,924
20,718
20,739
20,359
$ $ $ 90,582
$ 93,872
$ 94,534
$ 92,099
$ 92,636
$ 94,229
$ 95,179
$ 93,910
$ $
$
84,905
$
92,356
$
101,382
$
109,561
$
118,219
$
127,957
$
127,104
$
141,269
62,267
62,274
63,956
68,479
77,350
84,078
91,595
86,319
$ $
$
147,172
$
154,630
$
165,338
$
178,040
$
195,569
$
212,035
$
218,699
$
227,588
$ $
$
156,974
$
166,052
$
175,575
$
182,738
$
189,787
$
201,424
$
201,542
$
214,565
629
538
624
239
144
45
2
255
80,151
81,912
83,673
87,162
98,274
104,796
112,334
106,678
$ $
$
237,754
$
248,502
$
259,872
$
270,139
$
288,205
$
306,264
$
313,878
$
321,498
Note:
Data for fiscal years 2001 through 2002 not available. These periods were prior to the implementation of GASB Statement 34.
123
124
TABLE 2
CITY OFMONROE, NORTH CAROLINA
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(in thousands of dollars)
FISCAL YEAR
EXPENSES
2001 2002 2003 2004
2005
2006
2007
2008
2009
2010
Governmental activities:
General government
$ $ $ 4,216 $ 4,243 $
4,133 $
4,600
$ 4,176
$ 4,945
$ 4,725
$ 4,952
Transportation
3,652 4,409
4,119
4,482
4,444
4,966
5,441
5,667
Public safety
9,156 10,291
10,776
12,069
13,557
14,247
17,974
17,775
Environmental protection
1,854 1,894
1,903
2,007
2,349
2,551
-
-
Culture and recreation
3,307 3,462
3,197
3,483
3,802
3,922
4,914
4,906
Economic and physical development
357 791
898
1,404
2,140
948
859
1,784
Interest on long -term debt
212 232
158
187
205
238
312
161
Total governmental activities expenses
22,754 25,322
25,184
28,232
30,673
31,817
34,225
35,245
Business -type activities:
Water and sewer
8,388 9,202
8,826
8,525
8,907
11,381
11,543
11,520
Electric
31,120 32,369
33,990
35,491
37,042
39,703
41,629
43,588
Natural gas
14,867 20,171
19,305
20,791
16,037
16,942
16,867
17,585
Aquatics and Fitness Center
1,806 2,335
2,779
2,881
2,934
3,187
3,725
3,436
Stormwater
- -
-
-
-
-
795
1,351
Solid Waste
- -
-
-
-
-
2,698
2,702
Airport
489 595
596
1,272
2,187
2,865
3,232
3,498
Total business -type activities expenses
56,670 64,672
65,496
68,960
67,107
74,077
80,489
83,680
Total primary government expenses
$ $ $ 79,424 $ 89,994 $
90,680 $
97,192
$ 97,780
$ 105,894
$ 114,714
$ 118,925
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government
$ $ $ 887 $ 864 S
1,118 $
1,279
S 1,261
$ 1,132
$ 2,029
$ 1,979
Transportation
- -
-
-
-
-
243
236
Public safety
38 78
84
96
65
51
2,065
2,213
Environmental protection
1,742 1,855
1,914
2,062
2,761
2,795
43
-
Culture and recreation
710 747
708
761
814
844
1,239
1,194
Economic and physical development
7 12
8
4
13
3
2
8
Operating grants and contributions:
General government
20 314
32
69
85
8
-
-
Transportation
872 872
986
998
1,004
1,154
1,082
986
Public safety
508 270
206
246
897
1,017
604
732
Environmental protection
- 26
2
4
2
2
1
-
Culture and recreation
5 124
172
243
197
216
223
195
Economic and physical development
148 210
236
93
83
7
194
326
Capital grants and contributions:
-
Transportation
10,207 3,488
1,147
647
45
2,435
3,460
1,187
Economic and physical development
- -
-
-
-
-
-
785
Total governmental activities program revenues
15,144 8,860
6,613
6,502
7,227
9,665
11,184
9,841
124
Business -type activities:
Charge for services:
Water and sewer
10,362
10,434
11,180
12,080
13,303
12,705
12,207
12,365
Electric
33,926
34,513
35,993
39,118
39,854
43,051
40,926
43,089
Natural gas
17,056
21,940
21,064
22,683
18,163
18,836
20,116
24,251
Aquatics and Fitness Center
2,661
2,990
3,336
3,734
4,057
4,162
4,069
3,907
Stormwater
-
-
-
-
-
-
822
1,776
Solid Waste
-
-
-
-
-
-
2,748
2,839
Airport
138
178
255
676
1,398
1,897
1,559
1,493
Operating grants and contributions:
Water and sewer
-
-
-
8
-
-
-
-
-
-
Capital grants and contributions:
Water and sewer
882
1,234
1,004
2,451
2,918
527
Stormwater
-
-
-
-
-
-
-
-
109
-
Airport
1,852
584
681
324
903
154
483
Total business -type activities program revenues
65,995
71,529
73,743
79,619
80,129
83,569
83,236
90,203
Total primary government revenues
$ $
$
81,139
$
80,389
$ 80,356
$ 86,121
$ 87,356
$ 93,234
$
94,421
$
100,044
NET(EXPENSE)REVENUE
Governmental activities
$ $
$
(7,610)
$
(16,462)
$ (18,571)
$ (21,730)
$ (23,446)
$ (22,152)
$
(23,041)
$
(25,404)
Business -type activities
9,325
6,857
8,247
10,659
13,022
9,492
2,748
6,523
Total primary government net (expense) revenue
$ $
$
1,715
$
(9,605)
$ (10,324)
$ (11,071)
$ (10,424)
$ (12,660)
$
(20,293)
$
(18,881)
GENERAL REVENUES AND OTHER CHANGES IN NET ASSETS
Governmental activities:
Taxes:
Property taxes, levied for general purpose
$ $
$
10,478
$
10,967
$ 11,577
$ 12,107
$ 13,851
$ 15,304
$
16,286
$
16,954
Local option sales tax
-
-
4,672
4,406
4,958
4,884
4,096
3,537
Utility taxes
-
-
1,199
1,299
1,364
1,430
1,364
1,432
Other taxes
6,067
7,302
1,449
1,610
1,790
1,878
1,931
1,745
Grants and contributions not restricted to
specific programs
127
130
127
127
202
251
225
242
Unrestricted investment earnings
671
41
553
381
1,141
1,259
495
273
Miscellaneous
367
325
327
301
441
476
520
565
Gain on sale of capital assets
-
964
72
99
-
199
(19)
96
Transfers
(789)
(383)
(745)
(1,035)
237
(442)
(908)
(710)
Total governmental activities
16,921
19,346
19,231
19,295
23,985
25,239
23,990
24,134
Business -type activities:
Grants and contributions not restricted to
specific programs
-
-
-
-
1,632
-
-
-
-
-
Unrestricted investment earnings
2,256
54
84
862
3,465
4,853
2,992
971
Miscellaneous
(4)
179
-
150
65
60
63
395
Gain on sale of capital assets
-
-
-
(17)
-
(5)
1,214
1
(47)
291
Transfers
789
383
744
1,035
(237)
442
908
710
Total business -type activities
3,041
599
2,460
2,042
4,508
5,356
3,916
2,367
Total primary government
$ $
$
19,962
$
19,945
$ 21,691
$ 21,337
$ 28,492
$ 30,596
$
27,906
$
26,501
CHANGE IN NET ASSETS
Governmental activities
$ $
$
9,311
$
2,884
$ 660
$ (2,435)
$ 539
$ 3,087
$
950
$
(1,270)
Business -type activities
12,366
7,456
10,707
12,701
17,529
14,848
6,664
8,890
Total primary government
$ $
$
21,677
$
10,340
$ 11,367
$ 10,266
$ 18,069
$ 17,935
$
7,614
$
7,620
Notes:
Data for fiscal years 2001 through 2002 not available. These periods were prior to the implementation of GASB Statement 34.
Solid Waste and Stormwater funds were established in 2009. Previously, these expenditures were included in the General Fund.
Internal service funds were established in 2009. Per GASB, revenues for these funds are allocated between business type and governmental type activities.
125
General Fund
Reserved for:
Encumbrances
State statute
Streets - Powell bill
Unreserved for:
Designated for subsequent year's expenditures
Designated for self - insurance expenditures
Undesignated
Total General Fund
All other governmental funds
Reserved for:
Encumbrances
State statute
Unreserved for:
Designated for subsequent year's expenditures
Special Revenue Funds
Capital Projects Funds
Total all other governmental funds
CITY OF MONROE, NORTH CAROLINA TABLE 3
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(in thousands of dollars)
FISCAL YEAR
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
$ 1,799
$ 3,625
$ 1,555
$ 1,140
$ 2,064
$ 2,011
$ 530
$ 769
$ 624
$ 533
2,655
2,092
2,279
3,285
2,913
3,340
3,577
4,158
3,432
3,224
345
629
629
538
624
239
144
45
2
255
-
-
21010
1,905
2,015
1,799
1,724
2,231
2,288
1,835
3,062
2,663
2,917
2,973
2,947
2,711
2,607
2,658
-
-
10,939
7,839
8,259
9,790
8,413
8,072
9,472
10,746
11,520
13,779
$ 18,800
$ 16,848
$ 17,649
$ 19,631
$ 18,976
$ 18,172
$ 18,054 $
20,608
$ 17,866
$ 19,626
$ 655
$ 747
$ 556
$ 1,170
$ 367
$ 171
$ 359 $
$ 91
$ 29
141
150
245
47
458
115
71
3
2
204
-
-
-
-
-
-
-
-
-
1,398
276
297
323
201
307
433
1,552
1,418
1,600
211
2,173
903
819
245
1,101
1,076
1,884
1,179
3,328
(114)
$ 3,245
$ 2,097
$ 1,943
$ 1,663
$ 2,233
$ 1,795
$ 3,866 $
2,601
$ 5,021
$ 1,728
Notes:
The self - insurance expenditures are no longer reported in the General Fund. In 2009, they were moved to separate internal service funds.
CITY OF MONROE, NORTH CAROLINA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accounting)
(in thousands of dollars)
TABLE 4
127
FISCAL YEAR
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
REVENUES
Ad valorem taxes
$ 9,696
$ 10,235
$ 10,640
$ 11,043
$ 11,578 $
12,049
$ 13,655
$ 15,265
$ 16,134
$ 16,909
Other taxes and licenses
3,578
3,996
4,510
5,643
912
1,040
1,044
1,227
1,220
874
Unrestricted intergovernmental
2,299
761
1,672
1,749
6,490
6,332
7,176
7,177
6,360
6,044
Restricted intergovernmental
1,890
1,084
1,688
2,279
2,505
2,240
2,195
2,378
2,826
3,274
Program income
34
63
12
41
10
6
84
6
2
7
Sales and services (1)
5,169
3,443
3,334
4,513
3,742
4,292
5,012
5,137
1,961
1,740
Investment earnings
1,552
790
671
24
553
381
1,141
1,259
495
273
Miscellaneous
855
586
451
498
563
396
522
650
611
548
Total revenues
25,073
20,958
22,978
25,790
26,353
26,736
30,829
33,099
29,609
29,669
EXPENDITURES
General government
2,822
2,707
3,791
3,967
4,207
4,273
3,801
4,578
4,086
4,170
Transportation
1,656
1,422
1,698
1,984
1,858
2,144
2,162
2,426
2,452
1,727
Public safety
7,105
8,025
8,483
9,939
9,957
10,996
12,593
13,304
13,864
14,385
Environmental protection (1)
1,960
1,847
1,732
1,761
1,784
1,896
2,349
2,551
-
-
Culture and recreation
4,363
3,134
3,064
2,827
2,924
3,037
3,426
3,536
3,902
3,554
Economic and physical development
686
169
344
792
610
585
1,460
830
986
1,909
Capital outlay
3,591
4,440
2,682
2,992
5,131
3,878
2,446
5,487
2,619
2,832
Debt service:
Principal retirement
1,217
1,148
1,116
2,761
1,555
1,659
1,617
1,660
1,828
1,922
Interest and other charges
394
205
212
232
158
187
205
182
310
337
Repayment of Advance from other funds
-
-
-
-
-
-
-
-
-
131
Total expenditures
23,794
23,097
23,122
27,255
28,184
28,655
30,059
34,554
30,047
30,967
Excess (deficiency) of revenues over
(under) expenditures
1,279
(2,139)
(144)
(1,465)
(1,831)
(1,919)
770
(1,456)
(438)
(1,298)
OTHER FINANCING SOURCES (USES)
Transfers from (to) others
609
(714)
(789)
(383)
(745)
(1,035)
237
(573)
(3,430)
(710)
Installment purchase obligations issued
1,419
727
1,578
3,142
2,492
1,713
945
3,317
3,661
475
Total other financing sources (uses)
2,028
13
789
2,759
1,747
678
1,182
2,744
231
(235)
Net change in fund balances
$ 3,307
$ (2,126)
$ 645
$ 1,294
$ (84) $
(1,241)
$ 1,952
$ 1,288
$ (207)
$ (1,533)
Debt service as a percentage of
noncapital expenditures
7.97%
7.25%
6.50%
12.34%
7.43%
7.45%
6.60%
6.34%
7.79%
8.49%
Note:
(1) The Solid Waste Fund was established in
2009. Previously, these revenues
and expenditures were included in the General Fund.
127
CITY OF MONROE, NORTH CAROLINA
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(in thousands of'dollars)
Notes: (1) Property is assessed at actual value; therefore, the assessed value is equal to actual value.
Tax Rates are per $100 of assessed value.
Sources: Union County Tax Assessor's Office and North Carolina Property Tax Commission.
128
TABLE 5
Total
Public
Total
Direct
Fiscal
Real
Personal
Motor
Service
Assessed
Tax Rate
Year
Property
Property
Vehicle
Companies
Value
(1)
2001
$ 1,272,748
$ 412,743
$ 178,568
$ 42,937
$ 1,906,996
$ 0.500
2002
1,332,315
449,127
188,341
44,021
2,013,804
0.500
2003
1,388,118
460,214
193,463
43,444
2,085,239
0.500
2004
1,490,483
451,967
170,653
41,854
2,154,957
0.500
2005
1,691,376
444,329
198,995
41,408
2,376,108
0.480
2006
1,697,294
459,106
238,446
43,934
2,438,780
0.490
2007
1,779,327
521,941
226,844
43,261
2,571,373
0.530
2008
1,878,050
583,078
227,535
49,984
2,738,647
0.550
2009
2,346,529
659,913
207,793
49,487
3,263,722
0.495
2010
2,386,289
765,537
186,439
60,724
3,398,989
0.495
Notes: (1) Property is assessed at actual value; therefore, the assessed value is equal to actual value.
Tax Rates are per $100 of assessed value.
Sources: Union County Tax Assessor's Office and North Carolina Property Tax Commission.
128
TABLE 5
CITY OF MONROE, NORTH CAROLINA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN YEARS
(rate per $100 of assessed value)
Notes: (1) Total City tax rate is a weighted average of all types of City of Monroe tax rates.
Union County rate is a direct rate.
Source: Union County, Tax Assessment Division
129
TABLE 6
City of Monroe
Overlapping
Rates
Total
General
Municipal
Total
Union
Monroe
Direct and
Fiscal
Fund
Service District
Weighted
County
School
Overlapping
Year
Basic Rate
Basic Rate
Average Rate(i)
Basic Rate
District
Rates
2001
$ 0.5000
S 0.2000
S 0.5015
S 0.4705
S 0.0590
$ 1.0310
2002
0.5000
0.2000
0.5014
0.4705
0.0700
1.0419
2003
0.5000
0.2000
0.5034
0.4705
0.0700
1.0439
2004
0.5000
0.2000
0.5042
0.5300
0.0700
1.1042
2005
0.4800
0.2000
0.4794
0.5250
0.0700
1.0744
2006
0.4900
0.2000
0.4938
0.5600
0.0700
1.1238
2007
0.5300
0.2000
0.5338
0.6367
-
1.1705
2008
0.5500
0.2000
0.5491
0.7111
1.2602
2009
0.4950
0.2000
0.4955
0.6650
1.1605
2010
0.4950
0.2000
0.4945
0.6650
1.1595
Notes: (1) Total City tax rate is a weighted average of all types of City of Monroe tax rates.
Union County rate is a direct rate.
Source: Union County, Tax Assessment Division
129
TABLE 6
CITY OFMONROE, NORTH CAROLINA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(in thousands of'dollars)
Source: City of Monroe Tax System
130
TABLE 7
2001
2010
Percentage
Percentage
of
of
Total
Total
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Allegheny Technologies (Allvac)
$ 54,367
2
2.8%
$ 251,325
1
7.4%
Charlotte Pipe & Foundry Co.
81,715
1
4.3%
115,370
2
3.4%
Tyson Farms, Inc. (Tyson Foods, Inc.)
28,212
3
1.5%
44,034
3
1.3%
Turbomeca
-
-
36,426
4
1.1%
Consolidated Metco, Inc.
23,108
5
1.2%
34,434
5
1.0%
Inland American Monroe Poplin
-
-
33,677
6
1.0%
Yale Security (AssaAbloy - Door Security)
20,310
6
1.1%
24,512
7
0.7%
Greiner Bio -One
-
-
20,302
8
0.6%
Scott Technologies
19,623
9
0.6%
Monroe Mall (Madison)
-
-
18,314
10
0.5%
General Telephone of the Southeast
24,543
4
1.3%
-
Square D Company
17,563
7
0.9%
Southeast Realty Investments
17,258
8
0.9%
Cooper Industries
15,396
9
0.8%
Rodel, Inc.
15,273
10
0.8%
-
Total
$ 297,745
15.6%
$ 598,017
17.6%
Source: City of Monroe Tax System
130
TABLE 7
CITY OF MONROE, NORTH CAROLINA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(n thousands of dollars)
TABLE 8
Source: City of Monroe Tax System
131
Collected within the
Taxes
Fiscal Year of
Total Collections to Date
Taxes
Public
Levied for the
the Levy
Collections in
Percentage
Fiscal
Levied for the
Utility
Fiscal Year
Percentage
Subsequent
of Adjusted
Year
Fiscal Year
Allocation
Discoveries
Abatements
(Adjusted)
Amount of Levy
Years
Amount
Levy
2001
$ 9,061 $
215
$ 396
$ 60
$ 9,612
$ 9,296 96.71%
$ 300
$ 9,596
99.83%
2002
9,774
220
214
51
10,157
9,833 96.81
315
10,148
99.91
2003
10,236
217
79
82
10,450
10,117 96.82
315
10,432
99.83
2004
10,682
209
107
90
10,908
10,644 97.58
248
10,892
99.85
2005
10,869
199
472
106
11,434
11,178 97.77
235
11,413
99.82
2006
11,959
215
17
100
12,091
11,754 97.22
309
12,063
99.77
2007
13,429
229
407
137
13,928
13,290 96.45
557
13,847
99.42
2008
14,647
275
278
107
15,093
14,607 96.78
371
14,978
99.24
2009
16,100
245
45
159
16,231
15,669 96.54
383
16,052
98.90
2010
16,490
300
160
78
16,872
16,292 96.56
-
16,292
96.56
Source: City of Monroe Tax System
131
CITY OF MONROE, NORTH CAROLINA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TENFISCAL YEARS
(dollars in thousands, except per capita)
TABLE 9
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 14 for personal income and population data. These ratios are calculated using personal
income and population for prior calendar year. Calendar year 2008 and 2009 personal income not
available to calculate fiscal year 2009 and 2010.
(2) Personal income not available for 2009 and 2010.
132
Governmental
Percentage
Activities
Business -type
Activities
of
Installment
General
State
Installment
Total
Per
Personal
Fiscal
Purchase
Obligation
Revenue
Revolving
Purchase
Primary
Capita
Income
Year
Obligations
Bonds
Bonds
Loans
Obligations
Government
(1)
(1)
2001
$ 10,023
$ 5,735
$ 13,405
$ 11,721
$ 1,698
$ 42,582
$ 1,610
1.12%
2002
4,997
4,985
12,960
10,894
5,843
39,679
1,430
1.04%
2003
5,459
4,250
12,495
10,067
5,624
37,895
1,284
0.94%
2004
5,840
3,525
12,000
9,240
8,033
38,638
1,271
0.88%
2005
6,777
2,815
11,485
8,413
7,453
36,943
1,183
0.74%
2006
6,832
2,125
10,950
7,586
6,793
34,286
1,056
0.61%
2007
6,150
1,450
10,385
6,759
5,770
30,514
900
0.49%
2008
7,821
790
53,810
5,932
5,061
73,414
2,041
1.13%
2009
(2) 9,656
140
53,185
5,105
36,011
104,097
2,792
-
2010
(2) 8,209
-
51,320
4,278
36,291
100,098
2,626
Notes: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 14 for personal income and population data. These ratios are calculated using personal
income and population for prior calendar year. Calendar year 2008 and 2009 personal income not
available to calculate fiscal year 2009 and 2010.
(2) Personal income not available for 2009 and 2010.
132
CITY OFMONROE, NORTH CAROLINA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(dollars in thousands, except per capita)
Notes : Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 14 for population data.
(2) See Table 5 for total assessed value of property.
133
TABLE 10
Percentage
of Actual
General
Taxable Value
Per
Fiscal
Obligation
of Property
Capita
Year
Bonds
(2)
(1)
2001 $
5,735
0.30%
$ 217
2002
4,985
0.25
180
2003
4,250
0.20
144
2004
3,525
0.16
116
2005
2,815
0.12
90
2006
2,125
0.09
65
2007
1,450
0.06
43
2008
790
0.03
22
2009
140
0.004
4
2010
-
N/A
N/A
Notes : Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) See Table 14 for population data.
(2) See Table 5 for total assessed value of property.
133
TABLE 10
CITY OF MONROE, NORTH CAROLINA
DIRECT AND OVERLAPPING GOVERNMENTAL AC77V777ES DEBT
AS OF JUNE 30, 2010
(in thousands of'dollars)
Governmental Unit
Union County, overlapping debt
Total direct debt
Total direct and overlapping debt
Notes:
Source:
100%
$ 450,285 $ 66,642
(1) Includes general obligation debt only.
(2) Determined by ratio of assessed value of property subject to taxation in Union County ($22,905,687)
and City of Monroe ($3,398,989).
Union County Finance Department
134
TABLE 11
Estimated
Estimated
Share of
Debt
Percentage
Direct and
Outstanding
Applicable
Overlapping
(1)
(2)
Debt
$ 450,285
14.8%
$ 66,642
100%
$ 450,285 $ 66,642
(1) Includes general obligation debt only.
(2) Determined by ratio of assessed value of property subject to taxation in Union County ($22,905,687)
and City of Monroe ($3,398,989).
Union County Finance Department
134
TABLE 11
Assessed value
Debt limit (8% of total assessed value)
Bonded debt
Debt not evidenced by bonds
Gross debt
Less: deductions allowed by
North Carolina General Statutes:
Bonded debt incurred for water purposes
Bonded debt incurred for sewer purposes
Total deductions
Net debt applicable to limit
Legal debt margin
Note: NC Statute GS 159 -55 limits the City's debt to 8% of the appraised value of property subject to taxation.
The following deductions are made from gross to arrive at net debt applicable to the limit: money held
for payment of principal; debt incurred for water, sewer, gas, or electric purposes; uncollected special
assessments, funding and refunding bonds not yet issued; and revenue bonds. The legal debt margin
is the difference between the debt limit and the City's net debt outstanding applicable to the limit, and
represents the City's legal borrowing authority.
135
44,500
$ 44,500
$3,398,989
271,919
44,500
$ 227,419
TABLE 12
CITY OFMONROE, NORTH CAROLINA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
fn thousands of dollars)
FISCAL YEAR
2001
2002
2003 2004 2005
2006 2007
2008
2009
2010
Debt limit (8% of assessed value)
$ 152,628
$ 161,380
$ 165,377 $ 172,397 $ 190,088
$ 195,102 $ 205,710 $
219,092 $
261,098
$ 271,919
Total net debt applicable to limit
11,721
10,841
11,083 13,874 14,229
13,624 11,920
12,882
46,667
44,500
Legal debt margin
$ 140,907
$ 150,539
$ 154,294 $ 158,523 $ 175,859
$ 181,478 $ 193,790 $
206,210 $
214,431
$ 227,419
Total net debt applicable to the limit
as a percentage of debt limit
7.68%
6.72%
6.70% 8.05% 7.49%
6.98% 5.79%
5.88%
17.87%
16.37%
Legal Debt Margin
Calculation for Fiscal Year 2010
Assessed value
Debt limit (8% of total assessed value)
Bonded debt
Debt not evidenced by bonds
Gross debt
Less: deductions allowed by
North Carolina General Statutes:
Bonded debt incurred for water purposes
Bonded debt incurred for sewer purposes
Total deductions
Net debt applicable to limit
Legal debt margin
Note: NC Statute GS 159 -55 limits the City's debt to 8% of the appraised value of property subject to taxation.
The following deductions are made from gross to arrive at net debt applicable to the limit: money held
for payment of principal; debt incurred for water, sewer, gas, or electric purposes; uncollected special
assessments, funding and refunding bonds not yet issued; and revenue bonds. The legal debt margin
is the difference between the debt limit and the City's net debt outstanding applicable to the limit, and
represents the City's legal borrowing authority.
135
44,500
$ 44,500
$3,398,989
271,919
44,500
$ 227,419
Fiscal
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
CITY OF MONROE, NORTH CAROLINA
PLEDGED - REVENUE COVERAGE
LAST TEN FISCAL YEARS
(in thousands of dollars)
Nonoperating
Operating
Less
Income
Operating
Operating
Expenses
Revenues
(1)
$ 63,140
$ 54,238 $
56,257
49,069
61,482
52,302
67,065
59,705
68,492
60,408
74,557
63,809
72,718
61,629
76,489
67,113
74,807
66,727
75,197
67,175
CITY OF MONROE, NORTH CAROLINA
PLEDGED - REVENUE COVERAGE
LAST TEN FISCAL YEARS
(in thousands of dollars)
Nonoperating
Operating
Revenues
Income
(2)
8,902 $
2,816 $
7,188
1,972
9,180
2,212
7,360
52
8,084
1,585
10,748
834
11,088
3,343
9,376
4,683
8,081
2,884
8,022
939
Notes: Details regarding the City's outstanding debt can be found in the notes to
the financial statements.
(1) Per rate covenants, this does not include the annual depreciation expense.
(2) Per rate covenants, this includes investment earnings only.
(3) Per rate covenants, this does not include amortization of the deferred loss
incurred as a result of advance refundings.
136
Income
Available for
Debt Service
Debt
(3)
Service
Principal Interest
Coverage
11,718
$ 1,252 $
1,057
508
9,160
1,195
838
451
11,392
1,200
791
572
7,412
1,220
743
378
9,669
1,225
692
504
11,582
1,225
641
621
14,431
1,240
588
789
14,059
1,250
815
681
10,964
1,275
2,456
294
8,961
2,005
2,399
203
TABLE 13
CITY OF MONROE, NORTH CAROLINA
DEMOGRAPHIC AND ECONOMIC STA77STICS
LAST TEN FISCAL YEARS
Note: (1) Personal income not available for 2009 and 2010.
Sources: (2) North Carolina Office of State Planning
(3) US Department of Commerce - Bureau of Economic Analysis
(4) Union County Schools
(5) Employment Security Commission of North Carolina
137
TABLE 14
(County)
Personal
(County)
(County)
Income
Per Capita
Public
(County)
(City)
(thousands of
Personal
School
Unemployment
Fiscal
Population
dollars)
Income
Enrollment
Rate
Year
(2)
(3)
(3)
(4)
(5)
2001
26,456
3,790,817
28,814
22,875
3.70
2002
27,756
3,805,788
27,535
24,173
5.40
2003
29,508
4,019,969
27,913
25,680
5.40
2004
30,392
4,414,129
29,194
27,031
5.20
2005
31,234
4,987,416
31,064
28,815
4.50
2006
32,454
5,617,550
32,626
31,580
3.80
2007
33,908
6,207,640
33,650
34,564
4.30
2008
35,966
6,512,312
33,673
37,110
5.60
2009
(1) 37,280
-
-
38,554
10.80
2010
(1) 38,120
39,366
9.50
Note: (1) Personal income not available for 2009 and 2010.
Sources: (2) North Carolina Office of State Planning
(3) US Department of Commerce - Bureau of Economic Analysis
(4) Union County Schools
(5) Employment Security Commission of North Carolina
137
TABLE 14
CITY OF MONROE, NORTH CAROLINA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2001
Percentage of
Employees Total City
Employer (1) Employment Employees
Tyson Foods, Inc.
Allvac (Allegheny Technologies)
Carolinas Medical Center -Union
Union County
Charlotte Pipe & Foundry Co.
Scott Health & Safety (Tyco)
City of Monroe
Wal -Mart Stores, Inc.
IMO Industries
Goodrich Corporation
Total
2010
Percentage of
Total City
Employment
(2)
1,450
10.9%
1,060
8.0%
956
7.2%
573
4.3%
505
3.8%
500
3.8%
460
3.5%
350
2.6%
240
1.8%
Notes: (1) Data for 2001 not available.
(2) Percentage of total city employment based on North Carolina Employment Security Commission
labor force estimate of 13,325 as of June 30, 2010.
Sources: City of Monroe Economic Development Department
138
TABLE 15
CITY OFMONROE, NORTH CAROLINA
FULL -77ME EQUIVALENT CITY GOVERNMENT EMPLOYEES BYFUNC77ON
LAST TEN FISCAL YEARS
Function
General Government:
Administration
Planning and zoning
Engineering
Utility /tax billing and collection
Operations center
Transportation
Police
Fire
Building standards and code enforcement
Culture and recreation
Water and sewer:
Distribution system
Water filter plant
Waste treatment plant
Stormwater (2)
Electric
Natural gas
Aquatics and Fitness Center
Airport (1)
Total
FISCAL YEAR
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
TABLE 16
22
23
24
25
25
24
31
30
32
33
13
12
13
12
12
12
11
11
11
8
6
8
11
10
11
10
11
10
10
10
15
17
16
17
17
14
17
18
18
19
10
9
10
10
9
12
12
12
8
9
21
21
24
23
22
24
25
24
21
15
68
71
76
75
80
87
90
91
95
99
38
48
55
58
61
70
82
78
82
82
12
11
11
10
10
10
9
9
10
4
48
46
46
46
48
49
50
50
49
46
23
26
29
32
31
31
29
31
33
33
10
9
8
10
10
10
10
10
11
11
11
12
13
14
14
15
15
15
14
13
-
-
-
-
-
-
-
-
8
10
17
20
21
18
21
22
22
25
24
27
13
12
14
14
14
13
13
14
13
13
18
19
20
21
20
20
20
20
20
20
7
7
7
8
8
345
364
391
395
405
430
454
455
467
460
Note: (1) The City of Monroe assumed direct management of avaiation services at the Monroe Regional
Airport in March of 2006. In prior years, the FBO (Fixed Base Operation) had been managed
by a private enterprise under contract to the City.
(2) City of Monroe established a Stormwater utility program in 2009
Source: City of Monroe payroll system.
139
Notes (1) The building standards department was established in 1999.
Building permits and inspections in 2001 reflect a partial year.
(2) The City of Monroe assumed direct management of aviation services at the Monroe Regional Airport
in March of 2006. In prior years, the FBO (Fixed Base Operation) had been managed by a private
enterprise under contract to the City.
Sources: Various City departments.
140
CITY OF MONROE, NORTH CAROLINA
TABLE 17
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(i available or unless otherwise noted)
Fiscal Year
Function
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Transportation
Street reclamation (tons)
-
-
-
-
552
2,232
4,052
6,545
8,065
2,858
Street repair (tons)
1,286
2,702
3,592
2,511
2,131
1,057
1,765
2,100
1,219
595
Utility repair (tons)
160
342
422
552
368
119
314
296
321
527
Sidewalk repair (cubic yards concrete)
375
570
522
405
565
444
646
451
25
66
Pipe repair and replacement (linear feet)
1,588
657
433
768
247
956
440
911
2,016
2,132
Police
Physical arrests (calendar year)
4,546
4,623
4,745
4,309
4,443
4,335
4,596
4,094
3,468
-
Parking violations (calendar year)
-
260
348
2,091
1,263
3,707
3,686
3,918
3,408
Traffic violations (calendar year)
6,184
5,295
6,274
6,929
5,571
8,433
7,282
6,672
4,889
Fire
Calls for service (calendar year)
2,441
2,993
3,825
4,315
4,169
4,329
4,626
4,664
4,993
Fire code inspections (calendar year)
-
191
286
586
1,633
1,974
1,348
1,860
1,860
Civilian fire injuries (calendar year)
-
2
6
12
1
1
1
8
6
-
Building standards & code enforcement (1)
Building permits issued
95
2,536
3,768
3,357
4,943
5,129
3,943
3,951
3,845
2,876
Building inspections
205
6,495
10,857
10,697
11,728
13,750
13,817
11,381
8,642
7,553
Code enforcement inspections
2,130
1,856
1,912
2,573
3,398
1,431
1,341
2,565
5,518
6,422
Environmental protection
Solid waste collected (annual tonnage)
33,432
37,041
38,914
40,787
42,660
44,533
44,917
42,352
35,928
34,155
Recyclables collected (annual tonnage)
706
722
730
739
747
756
973
925
707
788
Culture and recreation
Rounds of golf played (calendar year)
37,373
33,163
28,238
31,388
30,888
35,364
32,988
28,667
30,075
-
Aquatics and fitness center members
9,047
10,391
11,273
13,468
16,138
17,546
18,200
20,824
20,889
20,444
Youth athletic program participants (calendar year)
-
425
450
630
750
800
775
775
486
-
Water
Average daily production (millions of gallons per day)
7.5
6.9
6.7
6.9
6.3
6.6
6.0
5.7
5.5
5.8
Maximum daily production (millions of gallons per day)
10.7
10.0
9.1
9.7
8.9
9.2
10.0
8.7
8.1
9.1
Customers
9,667
9,857
9,989
10,158
10,532
10,919
11,405
11,534
11,436
11,462
Gallons Billed (in thousands)
21,730
20,919
20,329
19,871
20,186
21,490
20,966
19,738
17,965
17,488
Sewer
Average daily treatment (millions of gallons per day)
6
6.6
7.9
7.1
7.2
6.8
7.0
6.1
6.5
6.8
Customers
8,263
8,450
8,629
8,804
9,002
9,400
9,861
10,025
9,948
9,959
Gallons Billed (in thousands)
23,127
22,585
23,986
22,594
24,360
24,330
24,072
22,646
21,268
20,169
Electric
Sales (megawatt hours)
514,534
521,550
520,540
550,615
524,129
585,253
587,377
620,185
595,689
591,112
Customers
9,207
9,480
9,611
9,710
9,892
10,142
10,452
10,467
10,331
10,324
Natural gas
Sales /deliveries (thousand cubic feet)
240,884
230,201
275,125
268,447
257,326
261,484
279,446
275,840
264,370
273,909
Customers
7,895
8,389
8,711
8,932
9,167
9,533
10,113
10,340
10,287
10,216
Airport (2)
Fuel sales (thousands of gallons)
363
328
314
327
367
377
390
421
324
345
Based aircraft
88
77
70
65
76
84
103
111
114
95
Notes (1) The building standards department was established in 1999.
Building permits and inspections in 2001 reflect a partial year.
(2) The City of Monroe assumed direct management of aviation services at the Monroe Regional Airport
in March of 2006. In prior years, the FBO (Fixed Base Operation) had been managed by a private
enterprise under contract to the City.
Sources: Various City departments.
140
CITY OF MONROE, NORTH CAROLINA
CAPITAL ASSET STATISTICS BY FUNCTION
LAST TEN FISCAL YEARS
(unless otherwise noted)
FISCAL YEAR
Function 2001 2002
2003
2004
2005
2006
2007
2008
Transportation
124
127
33
34
15,884
15,884
Municipal Boundary (square miles) 24.27 24.27
28.63
28.71
28.75
29.09
29.45
29.60
Streets (miles) 146 149
157
158
158
158
158
161
Sidewalks (miles) 40 42
43
43
44
44
45
50
Curb and gutter (miles) 105 107
107
109
110
110
111
119
Stormwater (miles) 26 27
28
29
29
29
30
32
Bridges (square feet) 15,468 15,468
15,468
15,468
15,468
15,468
15,884
15,884
Speed humps /cushions(each) 91 135
153
166
184
204
232
232
Public safety
Police stations 1 1
1
1
1
1
1
1
Patrol vehicles 73 76
76
79
85
89
89
89
Fire stations 3 4
5
5
5
5
5
5
Fire apparatus (line and reserve) 8 9
11
13
14
14
14
14
Culture and recreation
Acreage (city limits) 552 552
552
552
552
552
552
552
Aquatics and Fitness Center 1 1
1
1
1
1
1
1
Playgrounds 8 8
8
8
8
8
8
8
Gymnasiums (1) 3 3
3
3
3
3
3
3
Basketball courts 8 8
8
8
8
8
8
8
Tennis courts 10 10
10
10
10
10
10
10
Playing fields (baseball/soccer /football) (2) 15 15
15
15
15
20
20
20
Swimming pools 2 2
2
3
3
3
3
3
Golf course 1 1
1
1
1
1
1
1
Driving range 1 1
1
1
1
1
1
1
Greenway (miles) - -
-
-
-
0.5
0.5
0.5
Water and sewer
Water mains (miles) 270 272
276
279
289
292
293
291
Treatment capacity (millions of gallons per day) 11 11
11
11
11
11
11
11
Sewer
Sanitary sewers (miles) (3) 261 268
269
270
285
287
283
294
Treatment capacity (millions of gallons per day) 9.0 9.0
9.0
9.0
10.4
10.4
10.4
10.4
Electric
Substations (4) 7 7
7
7
7
7
7
8
Lines (miles per calendar year) 202 210
218
227
235
243
246
269
Natural gas
Lines (miles per calendar year) 323 348
365
373
392
414
430
578
Airport
Runway (feet) 5,500 5,500
5,500
5,500
5,500
5,500
5,500
5,500
Hangars (square feet) (5) 29,691 42,659
42,659
42,659
42,659
53,134
53,134
77,292
Notes: (1) A new gymnasium was built at the J Ray Shute recreation center in 2010.
(2) In 2006, the City received a Parke and Recreation Trust Fund (PARTF) grant
for Phase 11 development of the Parke Williams Athletic Complex.
The complex increased the number of soccer and softball fields.
(3) In 2007, miles reported were lower than the prior year, as a result of GIS mapping corrections
and refinements.
(4) In 2009, a substation was added to serve the airport and surrounding area.
(5) In 2008, the City purchased an existing T- hangar from the Maxwell Group and built a new
one. In 2009, the City
bought the
Southern Cross
hangar.
In addition to City owned hangars, there are private hangars on airport property. When these leases expire 20 years from initiation, they
become property
of the City.
Currently, there is 17,530 square feet of private hangar space.
Sources: Various City departments.
141
TABLE 18
2009
2010
29.63
29.63
164
166
54
61
124
127
33
34
15,884
15,884
242
279
1
1
92
92
5
5
14
14
552 552
1 1
8 8
3 4
8 8
10 10
20 20
3 3
1 1
1 1
0.5 0.5
291 291
11 11
294 295
10.4 10.4
9 9
281 -
594 -
5,500 5,500
85,865 85,865
CITY
OF
�rIONROE
a heritage of progress
POTTER &^Om N , PA.
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ONINTERNAL CONTROL OVER FINANCIAL REPORTING AND ON
COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OFFINANCIAL
STATEMENTS PERFORMED UNACCORDANCE WITH
GOVERNMENTAUDITING STANDARDS
To the Honorable Mayor and
Members o[ the City Council
City o[ Monroe, North Carolina
We have audited the accompanying financial statements nf the governmental activities, the business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregated remoininAfund information
of the City of Monroe, North Carolina, as of and for the year ended June 30, 2010, which collectively comprises the
City o[&1mnroe's basic Uoonuiu| statements, and have issued our report dho/run dated November J, 2010. We
uonJuoicJ our audit in accordance with auditing standards generally accepted in the United States of America and
the standards upp|iuu6|c to financial audits contained in Government Auditing Standards issued by the Comptroller
Oenco| of the United States. The fin000io| statements o[ the City of Monroe ABC Board and the City nfMonroe
Tourism Development Authority were not audited in accordance with Government Auditing Standards.
Tn planning and performing our audit, wr considered the City n[Monroc's internal control over financial reporting as
u basis for designing our auditing procedures for the purpose of expressing our opinion on the financial sta/omon|o,
but not for the purpose of expressing an opinion on the effectiveness of the City of&4onroo'a internal control over
financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City's internal control
over financial reporting.
& deficiency in internal control exists when the design or operation of control does not u||ov management or
employees, in the nnnna| course of perfonniog their assigned functions, to prevent or detect and correct
misstatements on u timely basis. & mo/crio| weakness is u deficiency, or o combination of deficiencies, in internol
control such that there is o reasonable possibility that omaterial misstatement uf the entity's financial statements will
not hcprevented, or detected and corrected on o timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose doaoi6cd in the Ors/
paragraph o[ this section and was not designed to identify all deficiencies in internal control over financial reporting
that might be doOcicnuico' significant deficiencies or material weaknesses. We did not identify any deficiencies in
internal control over financial reporting that we consider to be material weaknesses, as defined above.
Compliance and Other Matters
As port of obtaining reasonable assurance about *bctkor the City of K4unroo'a 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 rhnoc provisions was not an
objective of our audit, and accordingly, we du not cxpn:ux such an opinion. The nxu|{s of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing S/unubru6
We noted certain matters that we reported to management of the City of Monroe, in a separate letter dated November
|49
114 North Church Street m Monroe, NC28112m704.283.O189m7O4.289.3439 fax mvmxwvgotopotteccom
This report is intended solely for the information and use of management, others within the entity, members of City
Council, and federal and State awarding agencies and pass-through entities and is not intended to be and should not
be used by anyone other than these specified parties.
November 3, 2010
Monroe, North Carolina
144
�� ��
m ^�^u u u_� ^��^_�-^�vux � n� � ^, x ./ u.
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR FEDERAL
PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
OMB CIRCULAR A-233 AND THE STATE SINGLE AUDIT IMPLEMENTATION ACT
To the Honorable Mayor and
Members of the City Council
City o[ Monroe, North Carolina
Compliance
We have audited the City of Monroe, North Carolina, compliance with the types of compliance requirements
described io the OMB Circular.4 133 Compliance Supplement and the Audit &/nnou//o/Governmental Auditors in
North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of
the City of Monroe's major federal programs for the year ended June 30, 2010. The City ofK4onznc'm major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of findings and
questioned costs. Compliance with the requirements of laws, regu|u(inns, contracts and grants applicable to each of
its major federal programs is the responsibility of the City of Mnncoc`xmunugemcn\. Our responsibility isioexpress
on opinion on the City o[Mnnrnc'x compliance based ou our audit.
We conducted our audit of compliance in accordance with auditing standards generally ucoupted in the United States
oy America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and 0K48 Circular &-l3],Audits o/Stmes, Local Governments, uxdNmv-
yrofi/ Organizations, and the State Single Audit Implementation Act. Those standards, OMB Circular A-133, and
the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance
about whether noncompliance with the types of compliance requirements referred to above that could have odircot
and mukoriu| effect on u major federal program occurred. An audit includes examining, on u test basis, evidence
about the City of K4mnroo's compliance with those requirements and performing such other procedures as we
considered necessary in the circumstances. We believe that our audit provides reasonable basis for our opinion.
Our audit does not provide a legal determination on the City of Monroe's compliance with those requirements.
In our opinion, the City of Monroe cnmp\icd, in all mmichn| /rspcctx, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended June 30,
Internal Control Over Compliance
Management of the City of Monroe k responsible for establishing and maintaining effective internal control over
compliance with requirements of laws, regulations, contracts and grants applicable to federal programs. In planning
and performing our audit, *n considered the City ofK4nnroc`x internal control over compliance with requirements
that could have u direct and material effect on u major federal program to dc\cuninc the auditing procedures for the
purpose of expressing our opinion on compliance and to test and report on internal control over compliance in
accordance with OK88 Circular A-133, but not for the purpose u[ expressing on opinion on the effectiveness n[
internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control over compliance.
&deficiency in internal control over compliance exists when the design moperation ofucontrol over compliance
does not allow management ovemployees, io the normal course n[ performing their assigned functions, tu prevent, or
detect and correct, noncompliance with u type ofcompliance requirement of federal program ono timely basis. /\
material vvcuknoou in iotcrou) control over compliance is o deficiency, or combination of deficiencies in internal
control over compliance, such that ,6crr is a coaunoob|e possibility that material noncompliance with a typo of
compliance requirement ofa federal program will not hcprevented, oc detected and corrected, ooa timely basis.
/45
114 North Church Street m Monroe, NC281l2m7O4.283.818Pm7O4.289.3439 fax mvw^w.gotopnttocnom
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not dcsiAouj to identify all deficiencies in internal control over compliance that might be
dchcicnoios, significant deficiencies or material weaknesses. We did not identify any deficiencies in inucnmu| ounun|
over compliance that wo consider tohe material woukncsoco, as defined above.
This report is intended solely for the information and use of management, others within the entity, members of City
Council, and federal and State awarding agencies and pass-through entities and is not intended to be and should not
be used by anyone other than these specified parties.
November I2O|O
Monroe, North Carolina
146
�
POTTER &COMPANY, P.A.
CERTIFIED PUBLIC ACCOUNTANTS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR STATE
PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH
APPLICABLE SECTIONS OF OMB CIRCULAR A -133 AND THE STATE SINGLE AUDIT
IMPLEMENTATION ACT
To the Honorable Mayor and
Members of the City Council
City of Monroe, North Carolina
Compliance
We have audited the City of Monroe, North Carolina, compliance with the types of compliance requirements
described in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government
Commission, that could have a direct and material effect on each of its major State programs for the year ended June
30, 2010. The City of Monroe's major State programs are identified in the summary of auditor's results section of
the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts and grants applicable to each of its major State programs is the responsibility of the City of Monroe's
management. Our responsibility is to express an opinion on the City of Monroe's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States
of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and applicable sections of OMB Circular A -133, as described in the Audit
Manual for Governmental Auditors in North Carolina, and the State Single Audit Implementation Act. Those
standards, applicable sections of OMB Circular A -133, and the State Single Audit Implementation Act require that
we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of
compliance requirements referred to above that could have a direct and material effect on a major State program
occurred. An audit includes examining, on a test basis, evidence about the City of Monroe's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances. We believe
that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the
City of Monroe's compliance with those requirements.
In our opinion, the City of Monroe complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major State programs for the year ended June 30,
2010.
Internal Control Over Compliance
Management of the City of Monroe is responsible for establishing and maintaining effective internal control over
compliance with requirements of laws, regulations, contracts and grants applicable to State programs. In planning
and performing our audit, we considered the City of Monroe's internal control over compliance with the
requirements that could have a direct and material effect on a major State program to determine the auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over
compliance with applicable sections of OMB Circular A -133 and the State Single Audit Implementation Act, but not
for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we
do not express an opinion on the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, noncompliance with a type of compliance requirement of a State program on a timely basis. A
material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal
control over compliance, such that there is a reasonable possibility that material noncompliance with a type of
compliance requirement of a State program will not be prevented, or detected and corrected, on a timely basis.
147
114 North Church Street ■ Monroe, NC 28112 ■ 704.283.8189 ■ 704.289.3439 fax ■ www.gotopotter.com
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be
deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above.
This report is intended solely for the information and use of management, and others within the entity, members of
City Council, and federal and State awarding agencies and pass - through entities and is not intended to be and should
not be used by anyone other than these specified parties.
November 3, 2010
Monroe, North Carolina
148
Z�� I `��
SCHEDULE26
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Fiscal Year Ended June 30, 2010
Section 1. Summary of Auditors' Results
Financial Statements
Type ot auditors' report issued: Unqualified
Internal control over financial reporting:
° Material wnaknuas(em)identified? yes X no
°
Significant Deficiency(s) iduobbud that
are not considered to be material
weaknesses yes X none reported
Noncompliance material to financial
statements noted yes X no
Federal Awards
Internal control over major federal programs:
w K4ateria|weak0000(om) identified? yes X no
*
Significant Deficiency(s) identified that
are not considered W be material
weaknesses y
yes 7{ none reported
Type uC auditors' report issued on compliance for m
major /edoru|poogramu: Unqualified.
Any audit findings disclosed that are required
0nbu reported in accordance with Section
5|0(u)of Circular /\-i33
yes }{ no
Identification ofmajor federal pn/&rmoo:
CFDA Number N
Name of Federal Program
20.106 A
Airport Improvement Program
Dollar dnembo|d used to distinguish between
Type /\ and Type BPrograms $
$ 300000
&uditue qualified as low-risk uodi/ee7 }
}< �um no
S
State Awards
Internal control over major State programs:
* Material wcukncmm(oo)identified? y
yes }{ no
Significant Deficiency(s) identified that
are not considered to be material
weaknesses yes X none reported
-Continued-
149
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Fiscal Year Ended June 30, 2010
Type of auditors' report issued on compliance for major State programs: Unqualified
Any audit findings disclosed that are required
to be reported in accordance with the State
Single Audit Implementation Act yes X no
Identification of major State programs:
Program Name
Powell Bill
North Carolina Infrastructure Program
None reported.
None reported.
None reported.
Section 11 - Financial Statement Findings
Section III - Federal Award Findings and Questioned Costs
Section IV - State Awards Findings and Questioned Costs
SCHEDULE 26,
Continued
CITY OF MONROE, NORTH CAROLINA
SUMMAR Y SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
For the Fiscal Year Ended June 30, 2010
Finding: None reported.
151
SCHEDULE 27
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE A WARDS
For the Fiscal Year Ended June 30, 2010
Grantor/Pass-Through
Grantor /Program Title
Federal Grants:
Cash Programs:
U.S. Department of Justice:
Direct Programs:
Drug Enforcement Administration
Bulletproof Vest Partnership Program
COPS Hiring Recovery Program
ARRA - Recovery Act Edward Byrne
Memorial Justice Assistance Grant
U.S. Department of Homeland Security:
Direct Programs:
Staffing for Adequate Fire & Emergency
Response (SAFER)
Federal Aviation Administration:
Airport Improvement Program
Total Assistance - Federal Programs
State Grants:
Cash Assistance:
N.C. Department of Transportation:
Powell bill
State Aid to Airports Program
N.C. Department of Crime Control and Public LSafety:
COPS Equipment Grant
Violent Crimes Task Force
N.C. Department of Commerce:
The One North Carolina Fund
N.C. Department of Health and Human Services:
Aging Grant
N.C. Rural Economic Development Center, Inc.:
N.C. Economic Infrastructure Program
Total Assistance - State Programs
Total Federal and State Assistance
SCHEDULE 28
Federal Federal (Direct
CFDA and Pass-Through) State Local
Number Expenditures Expenditures Expenditures
16.579 $ 109,029 $ 2,356 $ 4,975
16.607 3,862 - 4,523
16.710 77,224 21,258
16.808 69,716 -
97.083
195,227
296,881
20.106 247,301 - 27,478
702,359 2,356 355,115
152
979,429 -
236,250 26,250
- 7,544 -
- 41,490 13,830
- 250,000 -
- 4,218 1,406
785,349 1,410,456
- 2,304,280 1,451,942
$ 702,359 $ 2,306,636 $ 1,807,057
-Continued
SCHEDULE 28,
Continued
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the Fiscal Year Ended June 30, 2009
Notes to the Schedule of Expenditures of Federal and State Financial Awards:
The accompanying Schedule of Expenditures of Federal and State Awards includes the Federal and State
grant activity of the City of Monroe and is presented on the modified accrual basis of accounting. The
information in this schedule is presented in accordance with the requirements of OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations, and the State Single Audit
Implementation Act. Therefore, some amounts presented in this schedule may differ from amounts
presented in, or used in the preparation of the basic financial statements.
153
CITY
OF
�rIONROE
a heritage of progress
:ITY
)F
ONROE
a heritage of progress
P.O. Box 69
Monroe, NC 28111
(704)282 -4500