Comprehensive Annual Financial Report - June 30, 2011�.v.. ,w ..+{w..,h,�
tw
CITY
OF
�rIONROE
a heritage of progress
City of Monroe, North Carolina
Comprehensive Annual Financial Report
For The Fiscal Year Ended June 30, 2011
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
.�IONROE
a heritage of progress
ùóèã íö ïíîêí÷ îíêèô ùûêíðóîû
èûúð÷ íö ùíîè÷îèé
òÇÎ×
óîèêíøçùèíêã é÷ùèóíîPage
ð×ÈÈ×Ê ÍÖ èÊÛÎÉÏÓÈÈÛÐ vii - xiv
õöíû ù×ÊÈÓÖÓÙÛÈ× ÍÖ ûÙÔÓ×Æ×Ï×ÎÈ ÖÍÊ ÷ÄÙ×ÐÐ×ÎÙ× ÓÎ öÓÎÛÎÙÓÛÐ ê×ÌÍÊÈÓÎÕ xv
ðÓÉÈ ÍÖ ìÊÓÎÙÓÌÛÐ íÖÖÓÙÓÛÐÉ................................................................xvi
íÊÕÛÎÓÂÛÈÓÍÎÛÐ ùÔÛÊÈ xvii
öóîûîùóûð é÷ùèóíî
óÎØ×Ì×ÎØ×ÎÈ ûÇØÓÈÍÊɪ ê×ÌÍÊÈ.................................................................................... 1 - 2
ïÛÎÛÕ×Ï×Î黃 øÓÉÙÇÉÉÓÍÎ ÛÎØ ûÎÛÐÃÉÓÉ 3 - 12
Exhibit Page
úÛÉÓÙ öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ
Government-wide Financial Statements:
Statement of Net Assets...................................................................................... 115
Statement of Activities....................................................................................... 216 - 17
Fund Financial Statements:
Balance Sheet - Governmental Funds.................................................................. 318
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets.................……….. ................................................... 419
Statement of Revenues, Expenditures, and Changes
In Fund Balances – Governmental Funds….. ................................................... 520
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental Funds to the
Statement of Activities................................................................................... 621
Statement of Revenues, Expenditures, and Changes in
Fund Balances - Budget and Actual - General Fund........................................... 723
Statement of Net Assets - Proprietary Funds.......................................................... 824 - 25
Statement of Revenues, Expenses, and Changes
in Fund Net Assets - Proprietary Funds............................................................ 926 - 27
Statement of Cash Flows - Proprietary Funds........................................................ 1028 - 31
Notes to the Financial Statements............................................................................ 32 - 66
RequiredSupplemental Financial Data:
Law Enforcement Officers’ Special Separation Allowance
Schedule of Funding Progress............................................................................. 67
Law Enforcement Officers’ Special Separation Allowance
Schedule of Employer Contributions................................................................ 68
i
ùóèã íö ïíîêí÷ îíêèô ùûêíðóîû
èûúð÷ íö ùíîè÷îèé
òÇÎ×
Page
The Health Care Plan
Schedule of Funding Progress……………………………………………………….. 69
The Health Care Plan
Schedule of Employer Contribution…………………………………………………. 70
íÈÔ×Ê éÇÌÌÐ×Ï×ÎÈÛÐ óÎÖÍÊÏÛÈÓÍÎ
Combining and Individual Fund Statements and Schedules:
Nonmajor Governmental Funds:
Combining Balance Sheet ..... ............................ ............. ............. ............................ 72 - 73
Combining Statement of Revenues, Expenditures, and
Changes in Fund Balances ............................ ............. ............. ............................ 74 – 75
Internal Service Funds:
Combining Statement of Net Assets…………………………………………………… 76
Combining Statement of Revenues, Expenses, and
Changes in Fund Net Assets……………………………………………………….. 77
Combining Statement of Cash Flows………………………………………………….. 78
Governmental Funds Budgetary Schedules:
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General Fund ............. ............................ 79 - 82
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - Special Revenue Funds .......................... 83 - 87
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - Capital Projects Funds ........................... 88 - 89
Enterprise Funds Budgetary Schedules:
Schedule of Revenues and Expenditures -
Budget and Actual - (NON-GAAP):
Water and Sewer Fund .. ............................ ............. ............. ............................ 90 - 92
Water and Sewer Capital Projects Funds .... ............. ............. ............................ 93 - 94
Electric Fund .... ............. ............................ ............. ............. ............................ 95 - 97
Electric Capital Projects Fund ..................... ............. ............. ............................ 98
Natural Gas Fund ........... ............................ ............. ............. ............................ 99 - 101
Natural Gas Capital Projects Fund .............. ............. ............. ............................ 102
Aquatics and Fitness Center Fund ............... ............. ............. ............................ 103 – 105
ii
ùóèã íö ïíîêí÷ îíêèô ùûêíðóîû
èûúð÷ íö ùíîè÷îèé
òÇÎ×
Page
Airport Fund ...... ............. ............................ ............. ............. ............................ 106 - 108
Airport Capital Projects Fund ..................... ............. ............. ............................ 109
Storm Water Fund………………………………………………………………...110 – 112
Solid Waste Fund………………………………………………………………… 113 – 115
Internal Service Funds Budgetary Schedules:
Schedule of Revenues and Expenditures – (NON-GAAP):
Health and Dental Fund…………………………………………………………… 116
Workers’ Compensation Fund…………………………………………………….. 117
Property and Liability Fund………………………………………………………. 118
Other Schedules
Schedule of Ad Valorem Taxes Receivable ........ ............. ............. ............................ 119
Analysis of Current Tax Levy - Citywide Levy .. ............. ............. ............................ 120
Page
Table
éèûèóéèóùûð é÷ùèóíî
Financial Trends:
Net Assets by Component ........... ............................ ............. ............. ............................ 1 123
Changes in Net Assets ... ............. ............................ ............. ............. ............................ 2 124 - 125
Fund Balances, Governmental Funds ....................... ............. ............. ............................ 3 126
Changes in Fund Balances, Governmental Funds .... ............. ............. ............................ 4 127
Revenue Capacity:
Assessed Value and Actual Value of Taxable Property ......... ............. ............................ 5 128
Direct and Overlapping Property Tax Rates ............ ............. ............. ............................ 6 129
Principal Property Taxpayers ..... ............................ ............. ............. ............................ 7 130
Property Tax Levies and Collections ....................... ............. ............. ............................ 8 131
Debt Capacity:
Ratios of Outstanding Debt by Type ....................... ............. ............. ............................ 9 132
Ratios of General Bonded Debt Outstanding .......... ............. ............. ............................ 10 133
Direct and Overlapping Governmental Activities Debt ........ ............. ............................ 11 134
Legal Debt Margin Information . ............................ ............. ............. ............................ 12 135
Pledged-Revenue Coverage ........ ............................ ............. ............. ............................ 13 136
Demographic and Economic Information:
Demographic and Economic Statistics ..................... ............. ............. ............................ 14 137
Principal Employers ..... ............. ............................ ............. ............. ............................ 15 138
Operation Information:
Full-Time Equivalent City Governmental Employees by Function .... ............................ 16 139
Operating Indicators by Function ............................ ............. ............. ............................ 17 140
iii
ùóèã íö ïíîêí÷ îíêèô ùûêíðóîû
èûúð÷ íö ùíîè÷îèé
òÇÎ×
Page
Capital Asset Statistics by Function ......................... ............. ............. ............................ 18 141
ùíïìðóûîù÷ é÷ùèóíî Schedule
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ .. ............. ............. ............................ 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 ............ ............. ............. ............................ 25 149 – 150
Corrective Action Plan .. ............. ............................ ............. ............. ............................ 26 151
Summary Schedule of Prior Year Audit Findings ... ............. ............. ............................ 27 152
Schedule of Expenditures of Federal and State Awards ........ ............. ............................ 28 153 - 154
iv
Introductory Section
• Letter of Transmittal
• Certificate of Achievement for Excellence in Financial Planning
• List of Principal Officials
• Organizational Chart
CITY
OF
.�IONROE
a heritage of progress
ùóèã íö ïíîêí÷
ìí úíä ¦ ïíîêí÷ îù
ìôíî÷
öûä
November 1, 2011
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, 2011. 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, 2011. 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 involves 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 evaluating 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
èÔ× ê×ÌÍÊÈÓÎÕ ÷ÎÈÓÈà ÛÎØ é×ÊÆÓÙ×É ìÊÍÆÓØ×Ø
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.
íÊÕÛÎÓÂÛÈÓÍÎ ÍÖ õÍÆ×ÊÎÏ×ÎÈ
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 33,000 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
÷ÙÍÎÍÏÓÙ ùÍÎØÓÈÓÍÎ ÛÎØ íÇÈÐÍÍÑ
In spite of the national recession, new and existing industries have announced millions of dollars in new
capital investments in manufacturing equipment and facility expansions. 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. In 2008 Monroe was named in the Top 5 in the United States for Excellence in Aerospace
th
Recruitment by Expansion Solutions magazine. While in 2009, 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. For 2011,
Monroe again received media coverage among international trade magazines and the Wall Street Journal.
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 Scott Safety, 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.
ïÛÒÍÊ óÎÓÈÓÛÈÓÆ×É
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 incremental
single digit rate increases rather than large rate increases in the year infrastructure is financed.
Due to the continued sluggish economy, the Water Resources Department has revised the timing for several
strategic capital project initiatives, including the Reclaimed Water System project, Bearskin Sewer outfall
upgrade, and wastewater treatment plant expansion. Current initiatives are focusing on system
sustainability and asset management programs. The renewal and replacement of aging water and
wastewater pipeline infrastructure is a priority. Preventative maintenance programs for all mechanical
equipment have also been established and refined. Utility coordination/realignments for the Turnpike
Authority Monroe Bypass have been funded. Work continues on the Stewart Creek sewer outfall and pump
station replacement. The City has secured final approval for funding the project via a $10.3 million dollar
State Revolving Fund loan from the North Carolina Department of Environment and Natural Resources
Constructions Grants and Loans Division.
The City’s Natural Gas Department has completed a 43 mile natural gas transmission line providing a
direct connection between Monroe’s distribution system and the Transcontinental Pipeline. This
transmission line was placed in service in May 2010. The new pipeline provides Monroe with the ability to
move more than 69,000 decatherms per day which is more than 2.5 times the amount allowed under our
former contract with a local investor owned utility. In addition the debt service on the pipeline is less than
previous demand charges. With the additional capacity a distribution expansion study has been completed
and expansion projects that will add approximately 80 miles of distribution piping have been funded.
Construction of the expansion projects began in August and will take about two years to complete. The
expansion projects should add 2,000 or more customers over the next 5 to 10 years.
ix
The City’s Electric Department continues work on the final section of a 12.8 mile 100 kilovolt transmission
loop, which when completed will provide a complete loop around the city and dual feed capabilities to each
substation. This project will greatly enhance reliability and maintainability of the electric system. Work is
also under way to add 13.2 kilovolt capacity to the Western side of the city by installing a 100 to 13.2
kilovolt transformer at the Goldmine road substation. This project should be completed in early 2013.
Several system improvement projects are also under way. Conversion of 4 kilovolt circuits from our
Cemetery Substation to 13.2 kilovolts is underway and scheduled for completion during late 2012.
Conversion of all remaining 4 kilovolt circuits is a long term goal which once completed will allow for a
reduction in warehouse inventory, and significant reductions in distribution line losses. Another significant
system improvement project under construction is a project to reconductor several main line feeders at the
Camp Sutton substation. These projects should be completed during the fall of 2012 and will improve
reliability, reduce system losses, and provide more system operating capabilities.
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, and storm drain marker. In addition, the Engineering Department has developed
in-house pollution prevention and good housekeeping education program for city employees on spill
prevention, vehicle/equipment maintenance and outdoor storage of materials and wastes. As part of the
NPDES Illicit Discharge Detection and Elimination requirement, the Engineering Department has began
walking the streams within the city limits to identify illicit discharges, which is scheduled for completion
by the end of 2012.
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 485 work orders in addition to completing six 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 consultant has completed the
stormwater master plan for the Stewart Creek watershed. By December 2011, the engineering consultant is
scheduled to complete the stormwater master plan for the Bearskin 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.
The City continues to invest in its future. The Charlotte-Monroe Executive Airport is undergoing a $21+
million renovation and expansion, funded through a Combined Enterprise Revenue Bond as well as Federal
and State grants. 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 has the capacity for approximately $800 million of new aircraft and
hangar investment over the next 40 years. The community has opened 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.
City Council is supportive of the City’s public safety departments and supports their efforts in making
Monroe a better community. The Monroe Police Department police officers participated in the Police
Athletic Program this year as the program included three sports: football, basketball, and baseball.
Cheerleading was also added to the program in an effort to promote more participation. During calendar
year 2010, the Police Athletic League had over one hundred children participating in football, cheerleading,
two basketball teams and two baseball teams.
The Monroe Police Department was selected to be a part of the High Intensity Drug Trafficking Area
(HIDTA) designation for Mecklenburg, Union and Gaston Counties. This is a collaborative effort between
x
local, state and federal law enforcement that will assist in the ongoing battle against the Mexican drug
trafficking organizations in our area. One of our officers has been assigned to work on the HIDTA task
force which should positively impact the residents in these counties.
Three officers have been added to our reserve officer status. The reserve officers will assist in an official
police officer capacity where needed and at no cost to the city.
The police department’s command staff was restructured during this year. An assistant chief was
designated as well as two captains. One captain oversees the patrol division and the other captain oversees
the Criminal Investigation Bureau and special services.
The Monroe Fire Department was recognized as the Union County Safe Kids Outstanding Child Safety
Seat Program for 2010 and Captain Robert Bolick was the recipient of the “Child Passenger Seat
Technician of the Year” for Union County.
Each fire company averaged 407 hours of in-service training for calendar year 2010. All Fire Captains
completed the NC Fire & Rescue Commission Level I Fire Instructor course. All Fire Captains and Chief
Officers obtained Fire Officer II certification and all Chief Officers completed the Chief 101 training class
by the NC State Fire Marshal’s Office.
The fire department transitioned to the 800 MHz radio system and is fully operational on this system,
which provides increased capacity and coverage as well as interoperable emergency communications with
other emergency service agencies.
The fire department applied for and received a grant from the National Fire Protection Agency (NFPA) to
implement the “Remembering When Program” designed for elderly residents. The department also
conducted fire extinguisher training (at no cost) to over 800 participants through 49 separate classes and
provided public education information to over 7,900 individuals.
The fire department created a fire extinguisher video that demonstrates the proper use of a fire extinguisher.
The video is provided to the public on the fire department’s website. The fire department has also
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 City’s fire department 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.
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 Connector/ Bypass Project as well as M.
L. King Boulevard, which has recently been completed. Multiple projects that are associated with the
Downtown Master Plan as well as the transportation solutions developed by a related transportation study
to enhance the development of the Downtown area await funding. 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 is constantly looking at methods and practices
to adequately maintain existing infrastructure and extend our transportation dollars. Chip sealing is one
such practice introduced recently that will enable the resurfacing of more miles of streets each year through
significantly reduced cost when compared to the traditional asphalt overlay.
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
xi
‘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 Monroe Hardware
Warehouse project added 26 residential units and street level retail shops, was completed in March of 2011
and is approximately fifty percent occupied. The project has received Federal and State Rehab Tax Credits
and also Mill Tax Credits and was approximately a $5.6 million investment in Downtown. The City has
undertaken streetscape improvements on Hayne Street in the project block and has opened up the rear alley
on the Windsor Street side per the Downtown Master Plan. The English Building has undergone upper
floor rehabilitation and is fully occupied with professional offices. Both the Warehouse and English
Building were private investment preservation projects. The Joffre Parking Lot, a public lot, has been
improved by the City with retaining walls and landscaping in anticipation of an infill development project
in the future. 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 continuing to update the City’s server hardware and software infrastructure. A new
SQL server will be implemented soon. The VM-Ware environment has been implemented. This virtual
server environment allows the IT department to better manage the server hardware requirements and
provide more up-time to the City’s IT infrastructure. An additional separate virtual server environment is
planned for the internet connected servers by December 2011.
A new data center has been constructed within the City Hall building to accommodate the need for growth
and future expansion. The new data center has redundant cooling capacity and uninterruptable power
supplies. The IT department has replaced all of the switches across our network providing faster
throughput for the network and much better management for network security and data flow.
By the end of September a new VOIP telephone system will be implemented. This system will include
recording capabilities and unified communications with the e-mail system. The majority of the telephone
system is hosted on VM-Ware servers providing more redundancy and reliability.
On completion of the new Energy Services building, the IT department will start building a disaster
recovery site at that location.
The City of Monroe pursues grant funding to provide resources for the completion of various projects. The
City has recently received funding from the Federal Aviation Administration and the NC Division of
Aviation of nearly $5 million, including $2.6 million for the airport runway overlay and strengthening and
apron pavement rehabilitation project.
During the 2010-2011 year, the police department had a significant increase in grant funding. Funding in
the amount of $600,000 was awarded to transition our radio system to the 800 MHz system and upgrade
our in-car video systems. The first $300,000 was used to purchase hand held 800 MHz radios for officers.
The second phase of this grant was used to purchase mobile radios and upgrade the in-car cameras. 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 was a recipient of a U.S. Department of Housing and Urban Development economic development
initiative grant. This grant was used to renovate the Old Armory building in Monroe for neighborhood
revitalization. The City is also a regular recipient of the Department of Justice Assistance Grants and
Community Development Block Grants.
ðÍÎÕè×ÊÏ öÓÎÛÎÙÓÛÐ ìÐÛÎÎÓÎÕ
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.
xii
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.
ê×Ð×ÆÛÎÈ öÓÎÛÎÙÓÛÐ ìÍÐÓÙÓ×É
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 $94,086,507 and the average investment earnings rate was
2.04%. Investment income includes the change in the fair value of investments. During the year monies
were invested and secured in accordance with state law.
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 2011
results that are built into the 2011-12 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.
ê×ÉÌÍÎÉ× ÈÍ ùÇÊÊ×ÎÈ ÷ÙÍÎÍÏÓÙ ùÍÎØÓÈÓÍÎÉ
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 2011, these actions included hiring only essential personnel and transferring employees from
within whenever possible and constant monitoring of operating expenses. In fiscal year 2012 all operations
are being evaluated to establish cost/benefit analysis of all programs that are provided to our community.
Based on this analysis, revenues and expenses are being adjusted to ensure that the City will be working
within current operating revenues. 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.
ûÅÛÊØÉ ÛÎØ ûÙÑÎÍÅÐ×ØÕ×Ï×ÎÈÉ
ûÅÛÊØÉ. 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
th
Comprehensive Annual Financial Report for the fiscal year ended June 30, 2010. This was the 18
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.
ûÙÑÎÍÅÐ×ØÕ×Ï×ÎÈÉ 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
xiii
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
xiv
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, 2010
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.
President
Executive Director
xv
ùóèã íö ïíîêí÷
îíêèô ùûêíðóîû
ðóéè íö ìêóîùóìûð íööóùóûðé
òÇÎ×
Elected Officials
Bobby G. Kilgore
ïÛÃÍÊ
Dottie M. Nash
ïÛÃÍÊ ìÊÍ è×Ï
John B. Ashcraft, Jr. Billy A. Jordan
Margaret Desio
Lynn A. Keziah Freddie Gordon
City Administration
H. Wayne Herron, Jr.
ùÓÈà ïÛÎÛÕ×Ê
Brian J. Borne Greg Demko
ûÉÉÓÉÈÛÎÈ ùÓÈà ïÛÎÛÕ×Ê
øÍÅÎÈÍÅÎ ïÍÎÊÍ× ûÉÉÓÉÈÛÎÈ ùÓÈà ïÛÎÛÕ×Ê
öÓÎÛÎÙ× øÓÊ×ÙÈÍÊ
øÓÊ×ÙÈÍÊ
Terry M. Sholar Bridgette H. Robinson
ùÓÈà ûÈÈÍÊÎ×à ùÓÈà ùÐ×ÊÑ
R. Christopher Platé James N. Loyd, Jr.
÷Ä×ÙÇÈÓÆ× øÓÊ×ÙÈÍÊ ÍÖ ÷ÙÍÎÍÏÓÙ øÓÊ×ÙÈÍÊ ÍÖ ÷ÎÕÓÎ××ÊÓÎÕ
ø×Æ×ÐÍÌÏ×ÎÈ ÛÎØ ûÆÓÛÈÓÍÎ
Debra C. Reed
Lisa W. Stiwinter
øÓÊ×ÙÈÍÊ ÍÖ ôÇÏÛÎ ê×ÉÍÇÊÙ×É øÓÊ×ÙÈÍÊ ÍÖ ìÐÛÎÎÓÎÕ
Don D. Mitchell Debra C. Duncan
øÓÊ×ÙÈÍÊ ÍÖ ÷Î×ÊÕà é×ÊÆÓÙ×É ìÍÐÓÙ× ùÔÓ×Ö
Ronald D. Fowler Bruce Bounds
öÓÊ× ùÔÓ×Ö øÓÊ×ÙÈÍÊ ÍÖ óÎÖÍÊÏÛÈÓÍÎ è×ÙÔÎÍÐÍÕÃ
C. Michael Courtney Russell G. Colbath
øÓÊ×ÙÈÍÊ ÍÖ ìÛÊÑÉ ê×ÙÊ×ÛÈÓÍÎ øÓÊ×ÙÈÍÊ ÍÖ åÛÈ×Ê ê×ÉÍÇÊÙ×É
xvi
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
CITY
OF
�rIONROE
a heritage of progress
óîø÷ì÷îø÷îè ûçøóèíêé ê÷ìíêè
The Honorable Mayor and The City Council
City of Monroe
North Carolina
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the discretely presented component units, each major fund, and the aggregate remaining fund information of the
City of Monroe, North Carolina, as of and for the year ended June 30, 2011, which collectively comprise the City of
Monroe’s basic financial statements as listed in the table of contents. These financial statements are the
responsibility of the City of Monroe’s management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
and the standards applicable to financial audits contained in õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the basic financial statements are free of material misstatement. The financial
statements of City of Monroe ABC Board and Monroe Tourism Development Authority were not audited in
accordance with õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the governmental activities, the business-type activities, the discretely presented component units, each
major fund, and the aggregate remaining fund information of the City of Monroe, North Carolina, as of June 30,
2011, 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 of America.
In accordance with õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ, we have also issued our report dated November 1, 2011 on
our 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, grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ
éÈÛÎØÛÊØÉ and should be read in conjunction with this report in considering the results of our audit.
Management’s Discussion and Analysis, the Law Enforcement Officers’ Special Separation Allowance Schedule
and Other Postemployment Benefits (OPEB) Schedules of Funding Progress and Employer Contributions are not a
required part of the basic financial statements but are supplementary information required by the Governmental
Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries
of management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit this information and express no opinion on it.
Our audit was performed for the purpose of forming an opinion on the financial statements that collectively
comprise the basic financial statements of the City of Monroe, North Carolina. The introductory section, the other
supplementary information section, and the statistical section as listed in the accompanying table of contents as
1
Å×ÐÐ ÛÉ ÈÔ× ÛÙÙÍÏÌÛÎÃÓÎÕ ÉÙÔ×ØÇÐ× ÍÖ ×ÄÌ×ÎØÓÈÇÊ×É ÍÖ Ö×Ø×ÊÛÐ ÛÎØ ÉÈÛÈ× ÛÅÛÊØÉ ÛÉ Ê×ËÇÓÊ×Ø Úà çé íÖÖÓÙ× ÍÖ
ïÛÎÛÕ×Ï×ÎÈ ÛÎØ úÇØÕ×È ùÓÊÙÇÐÛÊ û ûÇØÓÈÉ ÍÖ éÈÛÈ×É ðÍÙÛÐ õÍÆ×ÊÎÏ×ÎÈÉ ÛÎØ îÍÎìÊÍÖÓÈ íÊÕÛÎÓÂÛÈÓÍÎÉ ÛÎØ
ÈÔ× éÈÛÈ× éÓÎÕÐ× ûÇØÓÈ óÏÌÐ×Ï×ÎÈÛÈÓÍÎ ûÙÈ ÛÊ× ÌÊ×É×ÎÈ×Ø ÖÍÊ ÈÔ× ÌÇÊÌÍÉ×É ÍÖ ÛØØÓÈÓÍÎÛÐ ÛÎÛÐÃÉÓÉ ÛÎØ ÛÊ× ÎÍÈ Û
Ê×ËÇÓÊ×Ø ÌÛÊÈ ÍÖ ÈÔ× ÚÛÉÓÙ ÖÓÎÛÎÙÓÛÐ ÉÈÛÈ×Ï×ÎÈÉ èÔ× ÍÈÔ×Ê ÉÇÌÌÐ×Ï×ÎÈÛÊà ÓÎÖÍÊÏÛÈÓÍÎ ÛÎØ ÈÔ× ÉÙÔ×ØÇÐ× ÍÖ
×ÄÌ×ÎØÓÈÇÊ×É ÍÖ Ö×Ø×ÊÛÐ ÛÎØ éÈÛÈ× ÛÅÛÊØÉ ÔÛÆ× Ú××Î ÉÇÚÒ×ÙÈ×Ø ÈÍ ÈÔ× ÛÇØÓÈÓÎÕ ÌÊÍÙ×ØÇÊ×É ÛÌÌÐÓ×Ø ÓÎ ÈÔ× ÛÇØÓÈ ÍÖ ÈÔ×
ÚÛÉÓÙ ÖÓÎÛÎÙÓÛÐ ÉÈÛÈ×Ï×ÎÈÉ ÛÎØ ÓÎ ÍÇÊ ÍÌÓÎÓÍÎ ÛÊ× ÖÛÓÊÐà ÉÈÛÈ×Ø ÓÎ ÛÐÐ ÏÛÈ×ÊÓÛÐ Ê×ÉÌ×ÙÈÉ ÓÎ Ê×ÐÛÈÓÍÎ ÈÍ ÈÔ× ÚÛÉÓÙ
ÖÓÎÛÎÙÓÛÐ ÉÈÛÈ×Ï×ÎÈÉ ÈÛÑ×Î ÛÉ Û ÅÔÍÐ× èÔ× ÓÎÈÊÍØÇÙÈÍÊà É×ÙÈÓÍÎ ÛÎØ ÈÔ× ÉÈÛÈÓÉÈÓÙÛÐ É×ÙÈÓÍÎ ÔÛÆ× ÎÍÈ Ú××Î ÉÇÚÒ×ÙÈ×Ø
ÈÍ ÈÔ× ÛÇØÓÈÓÎÕ ÌÊÍÙ×ØÇÊ×É ÛÌÌÐÓ×Ø Úà ÇÉ ÓÎ ÈÔ× ÛÇØÓÈ ÍÖ ÚÛÉÓÙ ÖÓÎÛÎÙÓÛÐ ÉÈÛÈ×Ï×ÎÈÉ ÛÎØ ÛÙÙÍÊØÓÎÕÐà Å× ×ÄÌÊ×ÉÉ ÎÍ
ÍÌÓÎÓÍÎ ÍÎ ÈÔ×Ï
îÍÆ×ÏÚ×Ê
ïÍÎÊÍ× îÍÊÈÔ ùÛÊÍÐÓÎÛ
ïÛÎÛÕ×Ï×Î黃 øÓÉÙÇÉÉÓÍÎ ÛÎØ ûÎÛÐÃÉÓÉ
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,
2011. 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.
öÓÎÛÎÙÓÛÐ ôÓÕÔÐÓÕÔÈÉ
The assets of the City of Monroe exceeded its liabilities at the close of the fiscal year by
$331,576,535 (net assets). Of this amount, $115,032,659 (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 $10,079,035. This increase was the net of a
decrease of $568,069 from governmental activities and an increase of $10,647,104 for business-
type activities.
As of the close of the current fiscal year, the City’s governmental funds reported combined
ending fund balances of $21,759,508, an increase of $406,396 in comparison with the prior year.
Approximately 21 percent of this total amount or $4,468,009 is non spendable or restricted by
state law.
At the end of the current fiscal year, unassigned fund balance for the General Fund was
$13,041,611 or 51 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 $5,796,863 (6%) during the current fiscal year. The primary elements of the decrease
was the issuance of an installment financing loan totaling $771,100 for equipment purchases,
$395,000 in savings realized through refinancing the City’s Series 1998 and 2008B Combined
Enterprise Fund Revenue bond issues and $6,172,963 in debt retirements.
íÆ×ÊÆÓ×Å ÍÖ ÈÔ× öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ
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.
ê×ËÇÓÊ×Ø ùÍÏÌÍÎ×ÎÈÉ ÍÖ ûÎÎÇÛÐ öÓÎÛÎÙÓÛÐ ê×ÌÍÊÈ
öÓÕÇÊ×
Management’s Discussion Basic Financial
and Analysis Statements
Government-wideFund Financial Notes to the
Financial Statements Statements Financial Statements
Summary Detail
3
úÛÉÓÙ öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ
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.
õÍÆ×ÊÎÏ×ÎÈåÓØ× öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ
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.
öÇÎØ öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ
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
cash flow in and out, and what monies are left at year-end that will be available for spending in the next
year. Governmental funds are reported using an accounting method called modified accrual accounting
4
which provides a short-term spending focus. As a result, the governmental fund financial statements give
the reader a detailed short-term view that helps him or her determine if there are more or less financial
resources available to finance the City’s programs. The relationship between government activities
(reported in the Statement of Net Assets 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 is presented separately
in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures,
and changes in fund balances for the General Fund which is considered to be a major fund. Data from the
other seven governmental funds are combined into a single, aggregated presentation. Individual fund data
for each of these non-major governmental funds is provided in the form of combining statements
elsewhere in this report. These other seven governmental funds are made up of two capital projects funds
and five special revenue funds including Community Development, Downtown Monroe, Occupancy Tax,
City Grant Programs and State Grant Programs.
The City of Monroe adopts an annual budget for its General Fund, as required by North Carolina General
Statutes. 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 finance 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 as
planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of
accounting and is presented using the same format, language, and classifications as the legal budget
document. The statement shows four columns: 1) the original budget as adopted by the Council; 2) the
final budget as amended by the Council; 3) the actual resources, charges to appropriations, and ending
balances in the General Fund; and, 4) the difference or variance between the final budget and the actual
resources and charges. To account for the difference between the budgetary basis of accounting and the
modified accrual basis, a reconciliation showing the differences in the reported activities is shown at the
end of the budgetary statement.
Proprietary Funds – The City 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 activities in
the government-wide financial statements. The City uses enterprise funds to account for its water and
sewer, electric, natural gas, aquatics and fitness center, stormwater, sanitation and airport operations.
These funds are the same as those functions shown in the business-type activities in the Statement of
Activities.
Internal service funds are an accounting tool used to accumulate and allocate costs internally among
various functions. The City utilizes an internal service fund for its health, worker’s compensation and
property and casualty insurance. Because services accounted for in the internal service fund
predominately benefit governmental rather than business-type functions, it has been included within the
governmental activities in the government-wide financial statements.
Notes to the Financial Statements – The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to
the financial statements begin on page 32 of this report.
Other Information – In addition to the basic financial statements and accompanying notes, this report
includes certain required supplementary information concerning the City of Monroe’s progress in funding
its obligation to provide pension benefits to its employees. Required supplementary information can be
found beginning on page 72 of this report.
5
õÍÆ×ÊÎÏ×ÎÈåÓØ× öÓÎÛÎÙÓÛÐ ûÎÛÐÃÉÓÉ
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.
ùÓÈà ÍÖ ïÍÎÊÍ×ªÉ î×È ûÉÉ×ÈÉ
öÓÕÇÊ×
Governmental Activities Business-type Activities Total
2011 2010 2011 2010 2011 2010
Current and other assets $27,431,035 $25,542,119 $102,712,509 $101,007,280 $130,143,544 $126,549,399
Capital assets 78,428,606 81,505,564 231,667,778 226,582,766 310,096,384 308,088,330
Total assets 105,859,641 107,047,683 334,380,287 327,590,046 440,239,928 434,637,729
Long-term liabilities outstanding 8,520,184 8,582,025 84,571,338 88,137,311 93,091,522 96,719,336
Other liabilities 3,997,697 4,555,829 11,574,174 11,865,064 15,571,871 16,420,893
Total liabilities 12,517,881 13,137,854 96,145,512 100,002,375 108,663,393 113,140,229
Net assets:
Invested capital assets, net of
related debt 71,692,266 73,296,107 144,181,497 141,268,728 215,873,763 214,564,835
Restricted 670,113 254,874 - - 670,113 254,874
Unrestricted 20,979,381 20,358,848 94,053,278 86,318,943 115,032,659 106,677,791
Total net assets $93,341,760 $93,909,829 $238,234,775 $227,587,671 $331,576,535 $321,497,500
The total net assets of the City of Monroe were $331,576,535 as of June 30, 2011. Of the City’s total net
assets $215,873,763 (65.1%) 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 ($670,113) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of $115,032,659 (34.7%) 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 $10,079,035 during the current fiscal year. The biggest part of
this increase was due to increased cash provided by operating activities in the City’s electric, natural gas,
and water and sewer operations. The airport also received $2,150,000 in capital grants from the Federal
Aviation Administration. 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 2011,
including revenues and expenses, with a comparison to the prior year. For more detail see the Statement
of Activities on page 16-17.
6
ùÓÈà ÍÖ ïÍÎÊÍ×ªÉ ùÔÛÎÕ×É ÓÎ î×È ûÉÉ×ÈÉ
öÓÕÇÊ×
Governmental Activities Business-type Activities Total
2011 2010 2011 2010 2011 2010
Revenues:
Program revenues:
Charges for services $5,703,361 $5,630,582 $88,886,893 $89,719,118 $94,590,254 $95,349,700
Operating grants and contributions 1,987,614 2,238,247 -- 1,987,614 2,238,247
Capital grants and contributions 353,382 1,972,323 2,150,000 483,552 2,503,382 2,455,875
General revenues:
Property taxes 19,314,219 16,953,881 -- 19,314,219 16,953,881
Other taxes 7,661,345 6,714,313 -- 7,661,345 6,714,313
Grants and contributions not restricted to
specific grant programs 218,044 241,952 --218,044 241,952
Other 801,036 934,426 1,206,904 1,656,520 2,007,940 2,590,946
Total revenues 36,039,001 34,685,724 92,243,797 91,859,190 128,282,798 126,544,914
Expenses:
General government $5,294,074 $4,951,760 $ - $ - $5,294,074 $4,951,760
Transportation 4,699,347 5,666,866 --4,699,347 5,666,866
Public safety 18,223,483 17,774,850 -- 18,223,483 17,774,850
Culture and recreation 4,545,094 4,906,281 -- 4,545,094 4,906,281
Economic and physical development 1,118,615 1,783,573 -- 1,118,615 1,783,573
Interest in long-term debt 107,325 161,494 -- 107,325 161,494
Water and sewer -- 11,955,438 11,520,115 11,955,438 11,520,115
Electrical - -46,839,672 43,587,914 46,839,672 43,587,914
Natural Gas -- 13,912,769 17,584,631 13,912,769 17,584,631
Aquatics and Fitness Center -- 3,548,935 3,435,820 3,548,935 3,435,820
Stormwater - - 1,709,000 1,351,596 1,709,000 1,351,596
Solid waste - - 2,696,873 2,702,185 2,696,873 2,702,185
Airport - - 3,553,138 3,498,087 3,553,138 3,498,087
Total expenses 33,987,938 35,244,824 84,215,825 83,680,348 118,203,763 118,925,172
(Decrease) Increase in net assets before
transfers2,051,063 (559,100) 8,027,972 8,178,842 10,079,035 7,619,742
Transfers(2,619,132) (710,363) 2,619,132 710,363 --
(Decrease) Increase in net assets (568,069) (1,269,463) 10,647,104 8,889,205 10,079,035 7,619,742
Net assets – beginning 93,909,829 95,179,292 227,587,671 218,698,466 321,497,500 313,877,758
Net assets – ending $93,341,760 $93,909,829 $238,234,775 $227,587,671 $330,326,535 $321,497,500
Governmental activities – Governmental activities decreased the City of Monroe’s net assets by
$568,069. Key elements of this net decrease are as follows:
An increase in property taxes of 13.9% ($2,360,338), due primarily to an increase of $.06 per
$100 of assessed value in the real estate property tax rate.
Capital grants and contributions decreased by $1,618,941. This was due to a decrease in the
transportation function of $1,186,975 and in the economic development function of $785,348 and
an increase the public safety function of $49,355 and in the parks and recreation function of
$304,027. The decrease in transportation revenue is the result of no additions of infrastructure
which includes streets, curbs, sidewalks and stormwater in FY 2011.
An increase of $947,032 or 14.1% was reported in other taxes due primarily to a $383,645
increase in collection for privilege licenses which is the result of a rate increase and an $114,839
increase in collection for beer and wine tax. The State General Assembly retained a higher level
of the beer and wine tax distribution for one year in FY 2010. This revenue has been restored
back to the full distribution rate in FY 2011.
A decrease in transportation expense occurred due to road improvements that were completed in
FY 2010.
Transfers out increased primarily due to transfers from the General Fund to both the airport and
health and dental self insurance fund.
7
Business-type activities – Business-type activities increased the City of Monroe’s net assets by
$10,647,104 accounting for 105% of the total net growth in the government’s net assets. Key elements of
this increase are as follows:
Charges for services increased slightly in the water and sewer, stormwater, solid waste, airport
and aquatics and fitness center funds.
Electric revenue increased significantly due to a rate increase of 5% to offset increased rates for
the purchase of wholesale power.
Natural gas revenue decreased primarily due to a one-time receipt in FY 2010 of $6,000,000
pursuant to an agreement with Public Service Company of North Carolina. The remainder of the
decrease was due to a reduction in the cost of natural gas purchases for resale that has been
passed on to the customers.
The increase in capital grants and contributions was due grants received from the Federal
Aviation Administration for airport improvements.
A decrease in other revenues of $449,616 was due primarily to decreased investment interest
earnings.
The increase in transfers in was due to transfers for airport improvements.
öÓÎÛÎÙÓÛÐ ûÎÛÐÃÉÓÉ ÍÖ ÈÔ× ùÓÈÃªÉ öÇÎØÉ
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, unassigned 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, 2011, the governmental funds of City of Monroe reported a combined fund balance of
$21,759,508, which is an increase of $406,396 from last year’s total of $21,353,112. Of the
governmental funds combined ending fund balances, $13,041,611 represents unassigned fund balance,
which is available for spending at the City’s discretion. The remainder of fund balance is classified in
three categories: 1). Non spendable to indicate that it is not available for spending, as it is not in
spendable form; 2). Restricted to indicate that it is restricted to specific purposes as imposed by law; or
3). Assigned to indicate that it is intended to be used for a specific purpose. More information about
fund balance is available in section I.E.12 and section VIII. in the notes to the financial statements.
The general fund is the chief operating fund of the City of Monroe. As of June 30, 2011, the fund balance
in the General Fund was $20,478,381, an increase of $852,797 in comparison with the prior year. Of the
total fund balance in the General Fund, $13,041,611 (63.7%) was unassigned fund balance. Of this
amount, $7,701,463 is reserved by a minimum fund balance policy that has been adopted by City
Council. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund
balance and total fund balance to total fund expenditures. Unassigned fund balance represents 51% of
total general fund expenditures, while total fund balance represents 80% of that same amount. The
increase in fund balance is the net effect of several components including revenue exceeding projections,
savings in expenditures and transfers of available fund balance for projects and debt retirement.
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 $446,401 in this category is due primarily to the transfer of funds from the City
Grant Program Fund. The fund did not meet the criteria of a special revenue fund and has been combined
with the general fund. The remainder of the decrease was due to the appropriation of the remaining fund
balance for Downtown Monroe Fund to offset the transfer from general fund.
8
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.
Unrestricted Net Assets Growth in Net Assets
2011 201020112010
Water and Sewer $22,353,418 $21,869,547 $503,526 $1,098,927
Electric 50,530,631 49,205,975 5,370,319 621,632
Natural Gas 16,455,381 17,196,135 1,306,514 6,973,655
Airport 1,860,716 (4,424,894) 2,935,584 (791,393)
Aquatics and Fitness Center 2,072,050 1,838,011 401,263 513,695
Stormwater 467,405 368,47281,918413,803
Solid Waste 485,789 357,810 127,979 141,753
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, 2011, the
City of Monroe’s water fund reported total net assets of $72,789,592, an increase of $503,526 in
comparison with the prior year. This increase is primarily due to an increase in operating income netted
with a transfer to the electric fund for a new customer service building.
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, 2011, the City of Monroe’s electric
fund reported total net assets of $98,814,024, an increase of $5,370,319 in comparison with the prior year.
Approximately half of this increase is due to an increase in operating income. Electric rates were
increased by 5% to offset a wholesale power rate increase. The other half of this increase was due to
transfers from the Water Fund and Natural Gas Fund for their proportionate share of the purchase and
remodeling of a new customer service building and a new energy services building.
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, 2011, the City of Monroe’s natural
gas fund reported total net assets of $39,772,718, an increase of $1,306,514 in comparison with the prior
year. This increase is primarily due to an increase in operating income. The new 43-mile pipeline that
connects the City’s system to the transcontinental pipeline has been in service for the entire fiscal year
enabling the City to realize a full year in savings for transport charges totaling $2,520,000. The Natural
Gas Fund also transferred its proportionate share of the purchase and remodeling of a new customer
service building and a new energy services building.
The Airport Fund accounts for the operation of the Charlotte-Monroe Executive Airport. As of June 30,
2011, the City of Monroe’s airport fund reported total net assets of $16,921,017, an increase of
$2,935,584 in comparison with the prior year. This increase is because of the receipt of a grants totaling
$2,150,000 for runway improvements and transfers from the General Fund for capital improvements
totaling $243,900. The airport is currently undergoing a major renovation and expansion. The airport
9
was awarded a grant in May 2011 in the amount of $2,600,000 for the runway strengthening portion of
the expansion. Using savings realized from the projects and a general fund contribution in the amount of
$633,031, the airport has paid back the advance of $7,710,122 from the electric fund.
õ×Î×ÊÛÐ öÇÎØ úÇØÕ×ÈÛÊà ôÓÕÔÐÓÕÔÈÉ
During the fiscal year, the City of Monroe revised the budget on several occasions. Generally, budget
amendments are either amendments made to adjust the estimates that are used to prepare the original
budget ordinance once updated information is available or amendments made to recognize new funding
amounts from external sources, such as federal and State grants.
Total amendments to the General Fund increased expenditures by $1,556,968 or 5.8%. 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 $92,645 and unspent
appropriations (various grants and police equitable sharing) in the amount of $430,293.
Funds were appropriated for an airport capital project and to assist in the pay off of the airport
loan from the electric fund in the amount of $876,931.
Funds were appropriated to establish a reserve in the Health and Dental Self Insurance Fund in
the amount of $570,420.
Funds in the amount of $211,008 were returned to the General Fund from the City Grant Program
Fund to close the fund.
Revenues exceeded final budget by $1,300,497. This was primarily due to increased collections for
property taxes and sales tax.
Expenditures decreased from the prior year and were under budget by $2,751,781. Expenses were down
primarily due to savings realized from vacant positions due to a hiring freeze totaling approximately
$465,918, savings in operating expenses totaling approximately $1,536,870, and savings for unspent drug
seizure money and incentive grants totaling $469,686. Expenditures were 90% of the final amended
expenditure budget.
ùÛÌÓÈÛÐ ûÉÉ×ÈÉ
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 IV.A.5 on pages 43 - 47 of this
report.
ùÓÈà ÍÖ ïÍÎÊÍ×ªÉ ùÛÌÓÈÛÐ ûÉÉ×ÈÉ
î×È ÍÖ ø×ÌÊ×ÙÓÛÈÓÍÎ
öÓÕÇÊ×
Governmental Activities Business-type Activities Total
2011 2010 2011 2010 2011 2010
Land $4,760,642 $4,676,942 $16,364,736 $15,393,766 $21,125,378 $20,070,708
Buildings and improvements 13,471,076 12,568,101 27,793,427 29,013,338 41,264,503 41,581,439
Equipment 1,671,162 1,555,085 4,163,083 4,079,507 5,834,245 5,634,592
Vehicles and motorized
equipment 2,989,438 3,975,347 2,351,471 2,414,622 5,340,909 6,389,969
Other Intangibles 276,253 344,696 - - 276,253 344,696
Infrastructure 55,254,943 57,289,776 155,467,165 100,889,358 210,722,108 158,179,134
Construction in progress 5,092 1,095,617 25,527,896 74,792,175 25,532,988 75,887,792
Total $78,428,606 $81,505,564 $231,667,778 $226,582,766 $310,096,384 $308,088,330
The City of Monroe’s investment in capital assets for its governmental and business–type activities as of
June 30, 2011, totals $310,096,384 (net of accumulated depreciation). These assets include buildings,
roads and bridges, land, enterprise systems infrastructure, machinery and equipment, park facilities, and
10
vehicles. The total increase in the City’s investment in capital assets for the current fiscal year was
$2,008,054. Major capital asset events during the year included the following:
Completion of Armory Phase II
Completion of the gymnasium at J Ray Shute Recreation Center
Replacement of the Wastewater Treatment Plant generator
Utility relocation on Martin Luther King Boulevard
Completion of a new electric substation at the airport
Completion of the upgrade of the electric substation at Hwy 601 S
Replacement of transformers at two substations
Goldmine Road construction
43 miles of natural gas pipeline to connect to the transcontinental pipeline
Land acquisition for airport expansion
Construction in progress totaling $25,532,988 has significantly decreased from last year. Projects
included in this amount are as follows:
Water – Stewart Creek sewer outfall and pump station replacement.
Electric – construction of approximately 12.8 miles of transmission loop around the City and the
purchase and remodeling of a new energy services building and customer service building.
Natural Gas – land acquisition and construction of a 6” natural gas line loop around the City.
Airport – extension and strengthening of runway 5.
ø×ÚÈ ûØÏÓÎÓÉÈÊÛÈÓÍÎ
The following is a summary of the City’s long-term debt for governmental and business-type activity for
the current year with a comparison to the prior year. Additional information on long-term debt can be
found in note IV.B.7 beginning on page 56 of this report.
ùÓÈà ÍÖ ïÍÎÊÍ×ªÉ íÇÈÉÈÛÎØÓÎÕ ø×ÚÈ
õ×Î×ÊÛÐ íÚÐÓÕÛÈÓÍÎ ÛÎØ ê×Æ×ÎÇ× úÍÎØÉ
öÓÕÇÊ×
Governmental Activities Business-type Activities Total
2011 2010 2011 2010 2011 2010
Install purchase obligations $6,736,340 $8,209,458 $3,069,273 $3,625,941 $9,805,613 $11,835,399
Revenue bonds - - 48,980,000 51,320,000 48,980,000 51,320,000
State revolving loans - - 3,450,676 4,277,753 3,450,676 4,277,753
Certificates of participation - - 32,065,000 32,665,000 32,065,000 32,665,000
Total $6,736,340 $8,209,458 $87,564,949 $91,888,694 $94,301,289 $100,098,152
As of June 30, 2011, the City of Monroe had total debt outstanding of $94,301,289. The City’s bonded
debt, $48,980,000, represents bonds secured by the combined revenues of the major business-type funds
which include water and sewer, electric, natural gas and airport. The certificates of participation were
issued to fund the construction of a natural gas pipeline. The City’s total debt, net of retirements,
decreased $5,796,863 during the fiscal year. The primary elements of this change were issuance of an
installment financing totaling $771,100 for equipment purchases, $395,000 in savings realized through
refinancing the City’s Series 1998 and 2008B Combined Enterprise Fund Revenue bond issues and
$6,172,963 in debt retirements.
The City of Monroe has an A2 bond rating from Moody’s Investor Service and AA- rating from Standard
and Poor’s Corporation. These bond ratings are indications of the sound financial condition and stable
outlook of the City of Monroe.
11
North Carolina General Statutes limit the amount of general obligation debt that a unit of government can
issue to eight percent of the total assessed value of taxable property located within that government’s
boundaries. The legal debt margin for the City of Monroe is $235,387,906.
÷ÙÍÎÍÏÓÙ öÛÙÈÍÊÉ ÛÎØ î×ÄÈ ã×Û滃 úÇØÕ×ÈÉ ÛÎØ êÛÈ×É
The following key economic indicators reflect the growth and prosperity of the City.
The annual unemployment rate for City of Monroe has risen to 9.7%, which is an increase of
0.7% from last year. This rate is comparable to Union County’s rate of 9.5% and the State’s
average rate of 10.4%.
The taxable value of commercial and residential property increased 2.0% from fiscal year 2010 to
fiscal year 2011.
Population decreased 15.5% from 38,120 in 2010 to 33,007 in 2011. This decrease is the result
of adjusting estimated amounts to the US Census count in 2010.
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 City maintained the property tax rate of .555 for fiscal year 2012.
Expenditures and services were budgeted to remain at the same level as fiscal year 2011.
Business-type Activities – Water and 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 has received final approval for a state revolving loan in FY 2012 in the amount of
approximately $10.3 million for the Stewart Creek Sewer Upgrade Project. Electric rates were also
increased by 7.0% to cover the increased cost of wholesale power. Solid waste, natural gas and
stormwater rates remained the same.
ê×ËÇ×ÉÈÉ ÖÍÊ óÎÖÍÊÏÛÈÓÍÎ
This report is designed to provide an overview of the City’s finances for those with an interest in this
area. Questions concerning any of the information found in this report or requests for additional
information should be directed to the City of Monroe Department of Finance at 300 West Crowell Street,
.
Monroe, North Carolina, 28112, or visit the City’s website at www.monroenc.org
12
Basic Financial Statements
The Basic Financial Statements provide a summary overview of the
financial position of the governmental activities, the business -type
activities, the discretely presented component unit, each major fund, and
the aggregate remaining fund information at June 30, and the respective
changes in financial position and cash flows, where appropriate for the
year then ended.
• Government -Wide Financial Statements
• Fund Financial Statements
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
• Notes to Financial Statements
• Required Supplemental Information
CITY
OF
.�IONROE
a heritage of progress
XHIBIT 1
E
CITY OF MONROE, NORTH CAROLINA
TATEMENT OF NET ASSETS
S
une 30, 2011
J
ùÍÏÌÍÎ×ÎÈ çÎÓÈ
ìÊÓÏÛÊà õÍÆ×ÊÎÏ×Î
É
È
ïÍÎÊÍ×
èÍÇÊÓÉÏ
õÍÆ×ÊÎÏ×ÎÈÛÐúÇÉÓÎ×ÉÉÈÃÌ×ùÓÈà ÍÖ ïÍÎÊÍ×
ø×Æ×ÐÍÌÏ×ÎÈ
ûÙÈÓÆÓÈÓ×ÉûÙÈÓÆÓÈÓ×ÉèÍÈÛÐûúù úÍÛÊØûÇÈÔÍÊÓÈÃ
ûéé÷èé
Current assets:
Cash and cash equivalents21,619,977$ 80,906,895$ 102,526,872$ 545,796$ 137,956$
Taxes receivable1,211,970- 1,211,970 - -
Accounts receivable 493,7276,702,111 7,195,838 - 29,987
Note receivable- 1,459,931 1,459,931 - -
Internal balances172,112 (172,112) - - -
Due from other governments2,695,445- 2,695,445 - -
Due from component units51,659 - 51,659 - -
Inventories302,0084,137,898 4,439,906 237,746 -
Prepaids 49,225 - 49,225 18,079 7,560
Loans receivable (net)16,773-16,773--
Tota current assets26,612,89693,034,723119,647,619 175,503801,621
l
Restricted assets:
an cas equvaents670,1131,123,3541,793,467--
Cas
hdhil
Noncurrent assets:
Note receivable1,250,0005,879,404 7,129,404 - -
Due from (to) other funds(1,171,306)1,171,306 - - -
Deferred charges- 1,503,722 1,503,722 - -
Prepaid pension obligation69,332- 69,332 - -
Capital assets
Landnon,--depreciableimprovements,
Landnondepreciableimprovements
and construction in progress4,765,734 41,892,632 46,658,366 317,013 -
189,775,146 263,438,018 744,155 -
Other capital assets, net of depreciation73,662,872
Total capital assets78,428,606231,667,778310,096,384 -1,061,168
Total noncurrent assets78,576,632240,222,210318,798,842 -1,061,168
Total assets 334,380,287105,859,641 440,239,928 1,862,789 175,503
ðóûúóðóèó÷é
Current liabilities:
Accounts payable and accrued liabilities664,3755,835,037 6,499,412 320,474 3,020
Unearned revenue592,73032,702 625,432 - -
Due to primary government- - - 32,500 19,159
Current portion of long-term liabilities2,574,8175,136,441 7,711,258 - -
Payable from restricted assets- 569,994 569,994 - -
Property claims liability 5,974 - 5,974 - -
Workers compensation claims - - - - -
Health care benefits claims159,801 - 159,801 - -
Long-term liabilities:
OPEB liability2,694,7661,157,893 3,852,659 - -
Duen more tan one yea5,825,41883,413,44589,238,863--
ihr
Total liabilities12,517,88196,145,512108,663,393 22,179352,974
î÷è ûéé÷èé
Invested in capital assets, net of
related debt71,692,266 144,181,497 215,873,763 1,061,168 -
Restricted for:
Streets670,113 - 670,113 - -
Other purposes- - - 131,580 -
Unrestricted20,979,381 94,053,278 115,032,659 317,067 153,324
Total net assets93,341,760$$238,234,775$331,576,535$ 153,3241,509,815$
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, 2011
ìÊÍÕÊÛÏ ê×Æ×ÎÇ×É
íÌ×ÊÛÈÓÎÕ
õÊÛÎÈÉùÛÌÓÈÛÐ õÊÛÎÈÉ
ùÔÛÊÕ×É ÖÍÊ ÛÎØÛÎØ
÷ÄÌ×ÎÉ×Éé×ÊÆÓÙ×ÉùÍÎÈÊÓÚÇÈÓÍÎÉùÍÎÈÊÓÚÇÈÓÍÎÉ
öÇÎÙÈÓÍÎÉ
ìÊÍÕÊÛÏÉ
ìÊÓÏÛÊà ÕÍÆ×ÊÎÏ×ÎÈ
Governmental activities:
General government5,294,074$ 1,955,543$ -$ -$
Transportation4,699,347202,043 1,032,439-
Public safety18,223,4832,311,411616,06349,355
Culture and recreation4,545,0941,231,594203,890304,027
Economic and physical development1,118,6152,770135,222-
Interest on long-term debt107,325 - - -
Tota governmenta actvtes,7,5,7,,7,5,
lliii33989380336119861433382
Business-type activities:
Water and sewer11,955,438 12,916,600 - -
Electric46,839,672 48,453,786 - -
Natural gas13,912,769 17,319,708 - -
Aquatics and Fitness Center3,548,935 3,927,181 - -
Stormwater1,709,000 1,793,744 - -
Solid waste2,696,873 2,822,596 - -
Airport3,553,138 1,653,278 - 2,150,000
Totausness-type actvtes,5,5,,-,5,
lbiiii84218288886893210000
Tota prmary governmen,,7,5,5,7,,5,
lit$11820363$949024$198614$203382
ùÍÏÌÍÎ×ÎÈ ÇÎÓÈÉ
ABC Board4,405,584$ 4,463,342$ -$ -$
Toursm Deveopmentutort,- -,7
ilAhiy34111029914
Tota component unts,7,,, -,7
li$446694$4463342$29914$
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
Tota genera revenues an transers
lldf
Change in net assets
Net assets, beginning
Net assets, ending
The notes to the financial statements are an integral part of this statement.
16
XHIBIT 2
E
î×È ÷ÄÌ×ÎÉ× ê×Æ×ÎÇ× ÛÎØ ùÔÛÎÕ×É ÓÎ î×È ûÉÉ×ÈÉ
ùÍÏÌÍÎ×ÎÈ çÎÓÈÉ
ìÊÓÏÛÊà õÍÆ×ÊÎÏ×Î
È
ïÍÎÊÍ×
èÍÇÊÓÉÏ
õÍÆ×ÊÎÏ×ÎÈÛÐúÇÉÓÎ×ÉÉÈÃÌ×ùÓÈà ÍÖ ïÍÎÊÍ× ø×Æ×ÐÍÌÏ×ÎÈ
ûÙÈÓÆÓÈÓ×ÉèÍÈÛÐûúù úÍÛÊØûÇÈÔÍÊÓÈÃ
ûÙÈÓÆÓÈÓ×É
$ -(3,338,531)$ (3,338,531)$ -$ -$
(3,464,865) (3,464,865)- - -
(15,246,654) (15,246,654)- - -
(2,805,583) (2,805,583)- - -
(980,623) (980,623)- - -
-(107,325) (107,325) - -
-5,,5 -5,,5-
(294381)(294381)
961,162- 961,162 - -
1,614,114- 1,614,114 - -
3,406,939- 3,406,939 - -
378,246- 378,246 - -
84,744- 84,744 - -
125,723- 125,723 - -
250,140- 250,140 - -
-,, -,,-
68210686821068
5,,5,, -,,5-
$(294381)$6821068$(1912213)$$
$ --$ -$ 57,758$ -$
-- --,
(41396)
-- -57,75,
8(41396)
19,314,219 19,314,219- - -
3,905,931 3,905,931- - -
1,543,148 1,543,148- - -
2,212,266 2,212,266- - -
218,044 218,044- - -
64,286288,976 353,262 2,659 271
725,575857,765 1,583,340 6,339-
11,175 60,163 71,338 - -
2,619,132(2,619,132) - - -
5,75,5,,,,5,5,
2312382603629201482696610
10,647,104(568,069) 10,079,035 60,417 (34,786)
227,587,671 321,497,500 1,449,398 188,110
93,909,829
238,234,775$ 331,576,535$ 1,509,815$ 153,324$
$93,341,760
17
XHIBIT 3
E
CITY OF MONROE, NORTH CAROLINA
ALANCE SHEE
BT
GOVERNMENTAL FUND
S
une 30, 2011
J
íÈÔ×ÊèÍÈÛÐ
õÍÆ×ÊÎÏ×ÎÈÛÐõÍÆ×ÊÎÏ×ÎÈÛÐ
öÇÎØÉöÇÎØÉ
õ×Î×ÊÛÐ
ûéé÷èé
Cash and cash equivalents17,763,803$ 1,263,262$ 19,027,065$
Receivables:
Taxes 1,179,60032,370 1,211,970
Accounts 383,2071,232 384,439
Due from other governments 2,647,25248,193 2,695,445
32,500 19,15951,659
Due from component uni
t
Inventories302,008 302,008-
Prepaids29,164 -29,164
Loans receivable (net)- 16,77316,773
- 670,113
Cash and cash equivalents - restricted670,113
Total assets23,007,647$ 1,380,989$ 24,388,636$
ðóûúóðóèó÷é ûîø öçîø úûðûîù÷é
Liabilities:
Accounts payable and accrued liabilities613,667$ 50,718$ 664,385$
Deferred revenue1,322,86949,144 1,372,013
- 592,730
Unearned revenue592,730
Total liabilities2,529,266 99,862 2,629,128
Fund balances:
on Spendable
N
Inventories302,008- 302,008
Prepaids29,164- 29,164
Restricted
Stabilization by State Statute3,460,359 6,365 3,466,724
Streets670,113- 670,113
Assigne
d
Community Developmen 53,470- 53,470
t
Downtown Monro (134)- (134)
e
Capital Projects- 35,875 35,875
Occupancy Tax Capital Projects- 1,185,551 1,185,551
Subsequent year's expenditures2,975,126 - 2,975,126
Unassigned13,041,611 - 13,041,611
Total fund balances20,478,381 1,281,127 21,759,508
1,380,989$ 24,388,636$
Total liabilities and fund balances23,007,647$
The notes to the financial statements are an integral part of this statement.
18
XHIBIT
E4
CITY OF MONROE, NORTH CAROLINA
RECONCILIATION OF GOVERNMENTAL FUND
S
ALANCE SHEET TO THE STATEMENT OF NET ASSETS
B
une 30, 2011
J
Amounts reported for governmental activities in th
e
statement of net assets are different because:
Fund balances - total governmental funds (Exhibit 3)21,759,508$
Capital assets used in governmental activities are no
t
financial resources and therefore are not reported in the funds.
Gross capital assets at historical cost131,455,276$
Accumulated depreciation(53,026,670) 78,428,606
Other long-term assets are not available to pay for current period
expenditures and therefore are deferred in the funds.
Prepaid pension obligation 69,332
Note receivable from outside party 1,250,000
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
actvtesn te statement o net assets.,
activitiesinthestatementofnetassets976156
iiiihf976156
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.1,098,033
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. 482,304
Internal balance due from Business Type Activities to Governmental Activities.172,112
Liabilities for earned but deferred revenues in fund statements.1,372,016
ote payable to electric fund (1,171,306)
N
Long-term liabilities are not due and payable in the current period
and therefore are not reported in the funds (Note II.A.).(11,095,001)
Net assets of governmental activities (Exhibit 1)93,341,760$
The notes to the financial statements are an integral part of this statement.
19
EXHIBIT 5
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES -- GOVERNMENTAL FUNDS
For the Year Ended June 30, 2011
íÈÔ×ÊèÍÈÛÐ
õÍÆ×ÊÎÏ×ÎÈÛÐõÍÆ×ÊÎÏ×ÎÈÛÐ
õ×Î×ÊÛÐöÇÎØÉöÇÎØÉ
ê÷æ÷îç÷é
Ad valorem taxes$ 50,28519,166,334$ 19,216,619$
Other taxes and licenses939,729 308,984 1,248,713
Unrestricted intergovernmental6,586,186 - 6,586,186
Restricted intergovernmental1,760,001 639,057 2,399,058
Program income- 2,400 2,400
Sales and services1,708,256 - 1,708,256
Investment earnings61,318 2,968 64,286
Miscellaneous746,600 523 747,123
Total revenues30,968,424 1,004,217 31,972,641
÷äì÷îøóèçê÷é
Current:
General government3,280,002 - 3,280,002
Transportation1,973,334 - 1,973,334
Public safety14,378,372 - 14,378,372
Culture and recreation4,092,302 - 4,092,302
Economic and physical development- 2,044,927 2,044,927
Capital outlay- 487,578 487,578
Debt service:
Principal retirement1,961,757 - 1,961,757
Interest and other charges60,964 - 60,964
Total expenditures25,746,731 2,532,505 28,279,236
Deficiency of revenues under expenditures5,221,693 (1,528,288) 3,693,405
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from other funds220,278 1,305,697 1,525,975
Transfers to other funds(4,721,297) (223,810) (4,945,107)
Repayment of advance from other funds(131,477) - (131,477)
Installment purchase obligations issued 263,600 - 263,600
Total other financing sources (uses)(4,368,896) 1,081,887 (3,287,009)
Net change in fund balances852,797 (446,401) 406,396
Fund balance, beginning19,625,584 1,727,528 21,353,112
Fund balance, ending20,478,381$ 1,281,127$ 21,759,508$
The notes to the financial statements are an integral part of this statement.
20
EXHIBIT 6
CITY OF MONROE, NORTH CAROLINA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2011
Amounts reported for governmental activities in the statement of activities
are different because:
Net change in fund balances - total governmental funds (Exhibit 5)406,396$
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.
This is the amount by which depreciation exceeded capital outlays
in the current period (Note II.B.). (3,055,197)
Governmental funds report the proceeds from the sale of capital assets
as an increase in financial resources. In the statement of activities, only
the gain (loss) on the sale of capital assets is reported. Thus, the change
in net assets differs from the change in fund balance by the net book
value of the capital assets sold. (21,761)
Revenues in the statement of activities that do not provide current
financial resources are not reported as revenues in the funds.
Change in deferred revenue 118,292
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 in the government-wide
statements. Also, governmental funds report the effect of issuance costs,
premiums, discounts and similar items when debt is first issued, whereas ididiilihdbifiidh
these amounts are deferred and amortized in the statement of activities.
This amount is the net effect of these differences in the treatment of
long-term debt and related items (Note II.B.).1,473,118
Loan made to outside party 1,250,000
Principal repayment of advance from Electric Fund85,116
Some expenses reported in the statement of activities do not require
the use of current financial resources and, therefore, are not reported
as expenditures in governmental funds.
Compensated absences (125,627)
Net pension obligation
(59,998)
OPEB liability(1,093,108)
(1,278,733)
The internal service fund, determined to be governmental fund type, is used
by management to charge the costs, net of investment earnings, of health
and dental insurance program. 865,891
enterna servceun,etermne to e governmentaun type, s use
Thilifddidblfdid
y management to carge te costs, net onvestment earnngs, o worers
bhhfiifk'
compensation program. (444,193)
enterna servceun,etermne to e governmentaun type, s use
Thilifddidblfdid
y management to carge te costs, net onvestment earnngs, o property
bhhfiif
anatynsurance program.,
dlibilii33002
Change in net assets of governmental activities (Exhibit 2)$(568,069)
The notes to the financial statements are an integral part of this statement.
21
CITY
OF
.�IONROE
a heritage of progress
XHIBIT 7
E
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGE
S
IN FUND BALANCES -- BUDGET AND ACTUAL --
GENERAL FUND
For the Year Ended June 30, 2011
æÛÊÓÛÎÙ× ÅÓÈÔ
úÇØÕ×È×Ø ûÏÍÇÎÈÉöÓÎÛÐ úÇØÕ×È
ûÙÈÇÛÐìÍÉÓÈÓÆ×
íÊÓÕÓÎÛÐöÓÎÛÐûÏÍÇÎÈÉî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Ad valorem taxes$ 18,299,195$ 18,417,711$ 19,166,334$ 748,623
Other taxes and licenses974,540974,540939,729 (34,811)
Unrestricted intergovernmental5,740,8915,740,8916,586,186 845,295
Restricted intergovernmental1,159,4001,756,5881,760,001 3,413
Sales and services1,859,6281,836,2731,708,256 (128,017)
Investment earnings400,000400,00061,318 (338,682)
Miscellaneous 541,924666,342 746,600 204,676
Total revenues29,099,996 29,667,927 30,968,424 1,300,497
÷äì÷îøóèçê÷é
Current:
General government3,957,9554,360,2273,280,0021,080,225
Transportation2,602,8992,707,9411,973,334734,607
Public safety14,054,32115,008,92814,378,372630,556
Culture and recreation4,301,6754,396,7224,092,302304,420
Debt service:
Principal retirement1,624,6941,624,6941,961,757(337,063)
Interest and other charges 400,000400,000 60,964 339,036
Total expenditures26,941,544 28,498,512 25,746,731 2,751,781
Revenues over (under) expenditures2,158,452 1,169,415 5,221,693 4,052,278
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from other funds 9,000220,008220,278 270
Transfers to other funds (4,155,541) (5,081,040) (4,721,297) 359,743
Repayment of advance from other funds (131,480) (131,478) (131,477) (1)
Installment purchase obligations issued 285,000285,000 263,600 (21,400)
Total other financing sources (uses)(3,993,021) (4,707,510) (4,368,896) 338,612
öçîø úûðûîù÷ ûììêíìêóûè÷ø 1,834,5693,538,095-(3,538,095)
Net change in fund balance$ --$ 852,797 852,797$
Fund balance, beginning19,625,584
Fund balance, ending$20,478,381
The notes to the financial statements are an integral part of this statement.
23
CITY OF MONROE, NORTH CAROLINA
TATEMENT OF NET ASSETS
S
ROPRIETARY FUND
PS
une 30, 2011
J
ïÛÒÍÊ ÷ÎÈ×ÊÌÊÓÉ× öÇÎØÉ
åÛÈ×Ê
ÛÎØ é×Å×Ê÷Ð×ÙÈÊÓÙîÛÈÇÊÛÐ õÛÉûÓÊÌÍÊÈ
ûéé÷èé
Current assets:
Cash and cash equivalents21,934,321$ 39,053,157$ 15,354,945$ 1,348,733$
Accounts receivable1,032,545 3,675,495 792,183434,932
Note receivable- 541,768 918,163-
Prepaid expenses- - - -
Inventories285,1183,569,770 75,710195,756
Total current assets23,251,98446,840,190 1,859,37517,261,047
Noncurrent assets:
Restricted assets:
Cash and cash equivalents:
Unspent bond proceeds22,525 9,654 4,194 58,969
Customer deposits74,885354,499140,610-
Bond issuance costs 173,950404,827709,887215,058
Due from other funds - 6,243,530- -
Long-term note receivable- 1,764,761 4,114,643-
Capital assets:
Land and other non-depreciable assets1,294,760 18,132,002 4,985,695 16,554,581
54,334,200 10,910,94354,678,388
Other capital assets, net of depreciation62,658,674
Capital assets (net)63,953,43472,466,202 27,465,52459,664,083
Tota noncurrent assets64,224,79481,243,473 27,739,55164,633,417
l
Tota assets87,476,778128,083,663 29,598,92681,894,464
l
ðóûúóðóèó÷é
Current liabilities:
Accounts payable and accrued liabilities 346,126 4,366,351 516,740109,238
Unearned revenue 9,516- - -
Compensated absences 156,237 89,625 31,105 9,843
Installment purchase obligations 79,556 302,898 67,026 48,119
Certificates of participation - 608,452- -
Revenue bonds payable 509,746 755,644 166,924 915,172
827,077 ---
State revolving loans payabl
e
Total current liabilities1,918,7425,524,034 1,082,3721,390,247
Liabilities payable from restricted assets:
Customer deposits74,885 354,499 140,610 -
Noncurrent liabilities:
Due to other funds - - 4,960,920-
Compensated absences76,951 44,145 15,318 4,848
Installment purchase obligations 78,693 728,727 120,282 151,711
Certificates of participation - net of unamortized discounts- - 31,138,965-
Revenue bonds payable - net of deferred amount on refunding
and unamortized premium9,421,11422,405,1944,249,29111,349,190
State revolving loans payable2,623,599 - - -
Other postemployment benefits payabl493,202213,040 89,788106,113
e
Total noncurrent liabilities12,768,44423,745,605 11,595,53740,731,499
Totaates14,687,18629,269,639 12,677,90942,121,746
llibilii
î÷è ûéé÷èé
Invested in capital assets, net of related debt50,436,17448,283,39323,317,33715,060,301
50,530,631 16,455,381 1,860,716
Unrestricted22,353,418
Total net assets72,789,592$ 98,814,024$ 39,772,718$ 16,921,017$
Austment to reect te consoaton onterna servceun actvtes reate to enterprseuns
djflhlidifilifdiiildifd
et assets of business-type activities
N
The notes to the financial statements are an integral part of this statement.
24
XHIBIT 8
E
îÍÎÏÛÒÍõÍÆ×ÊÎÏ×ÎÈÛ
ÊÐ
÷ÎÈ×ÊÌÊÓÉ×ûÙÈÓÆÓÈÓ×É
öÇÎØÉóÎÈ×ÊÎÛÐ
ûËÇÛÈÓÙÉ ÛÎØé×ÊÆÓÙ×
öÓÈÎ×ÉÉ ù×ÎÈ×ÊéÈÍÊÏÅÛÈ×ÊéÍÐÓØ åÛÉÈ×èÍÈÛÐöÇÎØÉ
$ 131,7822,362,594$ 721,363$ 80,906,895
$ $ 2,592,912
571,366195,5906,702,111-
109,288
- - 1,459,931-
-
- - --
20,068
-11,544 - 4,137,898
-
703,1482,374,138 916,953 93,206,835
2,722,268
458,018- - 553,360
-
-- - 569,994
-
-- - 1,503,722
-
-- - 6,243,530
-
-- - 5,879,404
-
925,594 - 41,892,632-
-
279,478 - 189,775,146
6,913,463
-
279,4787,839,057 - 231,667,778
-
737,4967,839,057 - 246,417,788
-
1,440,64410,213,195 916,953 339,624,623
2,722,268
59,7539,415427,4145,835,037
165,775
23,186- - 32,702
-
25,660266341,86629,130
-
126,616-387,345 1,011,560
-
- - 608,452-
-
- - 2,347,486-
-
- - 827,077
-
-
161,691499,414 427,680 11,004,180
165,775
-- - 569,994
-
111,304-- 5,072,224
-
14,34812,638131168,379
-
526,052452,248 2,057,713-
-
- - 31,138,965-
-
- - 47,424,789-
-
- - 2,623,599-
-
76,726175,671 3,353 1,157,893
-
652,916716,071 3,484 90,213,556
-
814,6071,215,485 431,164 101,217,736
165,775
6,925,660158,632 144,181,497-
-
467,405 485,789 94,225,390 2,556,493
2,072,050
$ 626,0378,997,710$ 485,789$ 238,406,887
$2,556,493
172,112
()
$238,234,775
25
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES I
N
FUND NET ASSETS -- PROPRIETARY FUNDS
For the Year Ended June 30, 2011
ïÛÒÍÊ ÷ÎÈ×ÊÌÊÓÉ× öÇÎØÉ
åÛÈ×Ê
ÛÎØ é×Å×Ê÷Ð×ÙÈÊÓÙîÛÈÇÊÛÐ õÛÉûÓÊÌÍÊÈ
íì÷êûèóîõ ê÷æ÷îç÷é
Charges for services$ 12,593,269$ 48,161,410$ 17,010,623$ 1,617,841
Interfund charges and employee contributions - - - -
Other operating revenues 292,376323,331 10,560 35,437
Total operating revenues12,916,600 48,453,786 17,021,183 1,653,278
íì÷êûèóîõ ÷äì÷îé÷é
Distribution systems4,372,3003,319,9712,422,940-
Water filter plant2,404,585- - -
Waste treatment plant2,702,772- - -
Electric power purchases- 40,007,938- -
Natural gas purchases - 8,510,245- -
Aquatics and Fitness Center operations - - - -
Airport operations - - 2,168,037-
Stormwater operations - - - -
Solidwaste operations - - - -
Operating expenses204,53990,53343,59036,884
Health benefit claims and premiums - - - -
Property and liability claims and premiums - - - -
Depreciation and amortization 2,298,3031,910,137 972,609 642,121
Total operating expenses11,594,33345,716,745 2,847,04211,949,384
Ttlti1159433345716745119493842847042
Operating income (loss) 2,737,0411,322,267 5,071,799 (1,193,764)
îíîíì÷êûèóîõ ê÷æ÷îç÷é ÷äì÷îé÷é
Gain (loss) on sale of capital assets- 190,511 - (130,348)
Availability fees281,924- 298,525-
Other nonoperating revenues13,324828,40016,036-
Investment earnings86,211104,37365,50321,120
Interest and other charges(626,073) (1,105,441) (1,939,415) (732,268)
Total nonoperating revenues (expenses)(244,614) 17,843 (1,559,351) (841,496)
Income (loss) before capital grants and transfers1,077,6532,754,884 3,512,448(2,035,260)
ùûìóèûð õêûîèé-- 2,150,000-
èêûîéö÷êé èí öêíï íèô÷ê öçîøé 2,615,435(574,127) (2,205,934) 2,820,844
Change in net assets503,526 5,370,319 1,306,514 2,935,584
Total net assets, beginning 72,286,066 93,443,705 38,466,204 13,985,433
98,814,024$ 39,772,718$ 16,921,017$
Total net assets, ending72,789,592$
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.
26
XHIBIT 9
E
îÍÎÏÛÒÍÊõÍÆ×ÊÎÏ×ÎÈÛÐ
÷ÎÈ×ÊÌÊÓÉ×ûÙÈÓÆÓÈÓ×É
öÇÎØÉóÎÈ×ÊÎÛÐ
ûËÇÛÈÓÙÉ ÛÎØé×ÊÆÓÙ×
öÓÈÎ×ÉÉ ù×ÎÈ×ÊéÈÍÊÏÅÛÈ×ÊéÍÐÓØ åÛÉÈ×èÍÈÛÐöÇÎØÉ
$ 1,793,7443,787,318$ 2,822,596$ 87,786,801$ -$
- - - - 5,274,055
-139,863 - 801,567 197,564
1,793,7443,927,181 2,822,596 88,588,368 5,471,619
-- - 10,115,211 -
-- - 2,404,585 -
-- - 2,702,772 -
-- - 40,007,938 -
- - 8,510,245- -
3,119,934 - 3,119,934- -
- - 2,168,037- -
1,593,015- 1,593,015- -
- 2,693,5522,693,552- -
77,12133,5313,353 489,551 190,628
- - - - 5,161,938
- - - - 547,421
60,326268,950 - 6,152,446 -
1,686,8723,466,005 2,696,905 79,957,2865,899,987
346600516868722696905799572865899987
106,872461,176 125,691 8,631,082 (428,368)
-- - 60,163 -
-- - 580,449 -
5- - 857,765 -
7,7941,6872,288288,976 3,069
(8,986)(48,281) - (4,460,464) -
(7,294)(40,487) 2,288 (2,673,111) 3,069
420,689 99,578 127,9795,957,971(425,299)
- - 2,150,000- -
(17,660)(19,426) - 2,619,132 800,000
81,918401,263 127,979 10,727,103 374,701
544,1198,596,447 357,810 2,181,792
626,037$ 485,789$ 2,556,493$
$8,997,710
(79,999)
$10,647,104
27
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
S
For the Year Ended June 30, 2011
ïÛÒÍÊ ÷ÎÈ×ÊÌÊÓÉ× öÇÎØÉ
åÛÈ×Ê
ÛÎØ é×Å×Ê÷Ð×ÙÈÊÓÙîÛÈÇÊÛÐ õÛÉûÓÊÌÍÊÈ
ùûéô öðíåé öêíï íì÷êûèóîõ ûùèóæóèó÷é
Cash received from customers12,463,880$ 47,438,171$ 17,039,214$ 1,223,810$
Cash paid for goods and services(5,776,221) (41,880,356) (10,939,263) (2,265,303)
Cash paid to or on behalf of employees for services(3,676,440) (1,235,790) (546,747) (499,827)
Customer deposits received 51,363 241,372 92,053 -
Customer deposits returned(53,743) (239,487) (98,537) -
Other operating revenues336,655 1,120,776 26,596 35,437
Net cash provided (used) by operating activities3,345,494 5,444,686 5,573,316 (1,505,883)
ùûéô öðíåé öêíï îíîùûìóèûð öóîûîùóîõ
ûùèóæóèó÷é
Net advances (to) from other funds - 8,629,571 (1,060,272) (7,710,122)
Transfers (to) from other funds(574,127)2,615,435(2,205,934) 2,820,844
et cash provided (used) by noncapital financing activiti(574,127) (3,266,206) (4,889,278)
Ne
ùûéô öðíåé öêíï ùûìóèûð ûîø ê÷ðûè÷ø
öóîûîùóîõ ûùèóæóèó÷é
Proceeds from issuance of long-term debt5,010,874 2,150,868 934,410 12,496,591
Proceeds from sale of capital assets- 292,422 - -
p,
Acquisition and construction of capital assets (520,519) (5,715,085) (2,232,715) (2,934,092)
Note receivable collected (granted) 648,940- 869,831 -
Capital contributions - Federal Grants - - 2,150,000-
Principal paid on bond maturities and equipment obligation(6,325,440) (3,174,232) (1,767,338) (12,721,796)
Interest paid on bond maturities and equipment obligations(694,334) (1,136,110) (1,827,044)(763,818)
Availability fees 281,924 298,525- -
Bond issuance costs(86,444)(37,105)(16,120) (84,710)
Net cash used by capital and related financing activities(2,333,939) (6,970,302) (3,740,451) (1,857,825)
ùûéô öðíåé öêíï óîæ÷éèóîõ ûùèóæóèó÷é
104,373 65,503 21,120
Earnings on investments86,211
Net increase (decrease) in cash and cash equivalents523,639 9,823,763 (1,367,838) (8,231,866)
29,593,547 16,867,587 9,639,568
Balances, beginning21,508,092
39,417,310$ 15,499,749$ 1,407,702$
Balances, ending22,031,731$
îÍÎÙÛÉÔ ÓÎÆ×ÉÈÓÎÕ ÙÛÌÓÈÛÐ ÛÎØ ÖÓÎÛÎÙÓÎÕ ÛÙÈÓÆÓÈÓ×É
The net book value of assets disposed in the Electric Fund amounted to $101,711.
The net book value of assets disposed in the Airport Fund amounted to $130,348.
The notes to the financial statements are an integral part of this statement.
28
XHIBIT 10,
E
Continued
îÍÎÏÛÒÍÊõÍÆ×ÊÎÏ×ÎÈÛÐ
÷ÎÈ×ÊÌÊÓÉ×ûÙÈÓÆÓÈÓ×É
öÇÎØÉóÎÈ×ÊÎÛÐ
ûËÇÛÈÓÙÉ ÛÎØé×ÊÆÓÙ×
öÓÈÎ×ÉÉ ù×ÎÈ×ÊéÈÍÊÏÅÛÈ×ÊéÍÐÓØ åÛÉÈ×èÍÈÛÐöÇÎØÉ
$ 3,787,318$ 1,333,638$ 2,826,657$ 86,112,688$ 5,274,281
(1,446,835) (1,050,125) (2,478,957) (65,837,060) (6,183,631)
(1,640,232) (564,124) (6,689) (8,169,849) -
- - - 384,788 -
- - (391,767)- -
139,863 5 - 1,659,332 286,280
840,114 (280,606) 341,011 13,758,132 (623,070)
(39,517)- - (180,340) -
(19,426) (17,660) -2,619,132-
(57,177) - 2,438,792 -
(19,426)
458,000- - 21,050,743 -
-- - 292,422 -
,
(5,224)(11,803) - (11,419,438) -
- - 1,518,771- -
- - 2,150,000- -
(424,370) (33,340) (24,446,516)- -
(48,281) (8,986) (4,478,573)- -
- - - 580,449 -
- - -(224,379)-
(484,454) 410,450 - (14,976,521) -
1,687 2,287 288,975 3,069
7,794
74,354344,028 343,298 1,509,378 179,999
515,446 378,065 80,520,871 2,412,913
2,018,566
589,800$ 721,363$ 82,030,249$ 2,592,912$
$2,362,594
29
CITY OF MONROE, NORTH CAROLINA
STATEMENT OF CASH FLOWS
PROPRIETARY FUND
S
For the Year Ended June 30, 2011
ïÛÒÍÊ ÷ÎÈ×ÊÌÊÓÉ× öÇÎØÉ
åÛÈ×Ê
ÛÎØ é×Å×Ê÷Ð×ÙÈÊÓÙîÛÈÇÊÛÐ õÛÉûÓÊÌÍÊÈ
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÍÖ ÍÌ×ÊÛÈÓÎÕ ÓÎÙÍÏ× ÈÍ Î×È ÙÛÉÔ ÌÊÍÆÓØ×Ø
Úà ÍÌ×ÊÛÈÓÎÕ ÛÙÈÓÆÓÈÓ×É
Operating income (loss)1,322,267$ 2,737,041$ 5,071,799$ (1,193,764)$
Adjustments to reconcile operating income to
net cash provided by operating activities:
Depreciation and amortization 1,910,137 2,298,303 972,609 642,121
Other revenues 13,324 828,400 16,036 -
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (129,389) (723,239) 28,591 (394,031)
(Increase) decrease in inventories (10,073) (14,107) (10,373) (409)
(Increase) decrease in prepaid expenses 4,736 1,008 496 210
Increase (decrease) in accounts payable and
accrued liabilities 33,336 227,469 (545,768) (596,228)
Increase (decrease) in customer deposits (2,380) 1,885 (6,484) -
Increase (decrease) in net OPEB liability 204,539 90,533 43,590 36,884
Increase (decrease) in compensated absences(1,003) (2,607) 2,820 (666)
Total adjustments2,023,227 2,707,645 501,517 (312,119)
Net cash provided (used) by operating activities$ 5,444,6863,345,494$ 5,573,316$ (1,505,883)$
The notes to the financial statements are an integral part of this statement.
30
XHIBIT 10
E
îÍÎÏÛÒÍÊõÍÆ×ÊÎÏ×ÎÈÛÐ
÷ÎÈ×ÊÌÊÓÉ×ûÙÈÓÆÓÈÓ×É
öÇÎØÉóÎÈ×ÊÎÛÐ
ûËÇÛÈÓÙÉ ÛÎØé×ÊÆÓÙ×
öÓÈÎ×ÉÉ ù×ÎÈ×ÊéÈÍÊÏÅÛÈ×ÊéÍÐÓØ åÛÉÈ×èÍÈÛÐöÇÎØÉ
$461,176 106,872$ 125,691$ 8,631,082$ (428,368)$
60,326268,950 - 6,152,446 -
-- - 857,760 -
(460,106)- 4,061 (1,674,113) (990)
-(3,655) - (38,617) -
373211 58 7,092 -
(24,630)30,640 207,451 (667,730) (274,142)
-- - (6,979) -
33,53177,121 3,353 489,551 -
3,0235,671 397 7,635 -
(387,483)378,938 215,320 5,127,045 (194,702)
$ (280,611)840,114$ 341,011$ 13,758,127$ (623,070)$
31
CITY OF MONROE, NORTH CAROLINA
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2011
I. éçïïûêã íö éóõîóöóùûîè ûùùíçîèóîõ ìíðóùó÷é
The accounting policies of the City of Monroe and its discretely presented component units conform to
generally accepted accounting principles as applicable to governments. The following is a summary of the
more significant accounting policies:
A.ê×ÌÍÊÈÓÎÕ ÷ÎÈÓÈÃ
The City of Monroe is a municipal corporation that is governed by an elected mayor and a six-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 below 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 is required by State statute to distribute a portion of its surpluses to the General Fund of the
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 ABC Board may be obtained from the entity’s
administrative offices at City of Monroe ABC Board, 1771 Dickerson Boulevard, Monroe, North Carolina
28110.
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 Authority,
which has a June 30 year end, is presented as if it were a general government fund (discrete presentation).
Complete financial statements for the Authority may be obtained from the entity’s administrative offices at
City of Monroe Tourism Development Authority, 300 West Crowell Street, Monroe, North Carolina
28112.
B.úÛÉÓÉ ÍÖ ìÊ×É×ÎÈÛÈÓÍÎ
õÍÆ×ÊÎÏ×ÎÈÅÓØ× éÈÛÈ×Ï×ÎÈÉ: 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 between the ÕÍÆ×ÊÎÏ×ÎÈÛÐ and ÚÇÉÓÎ×ÉÉÈÃÌ×ÛÙÈÓÆÓÈÓ×É of
the City. Governmental activities generally are financed through taxes, intergovernmental revenues, and
other non-exchange transactions. Business-type activities are financed in whole or in part by fees charged
to external parties.
The statement of activities presents a comparison between direct expenses and program revenues for the
different business-type activities of the City and for each function of the City's governmental activities.
Direct expenses are those that are specifically associated with a program or function and, therefore, are
clearly identifiable to a particular function. Indirect expense allocations that have been made in the funds
have been reversed for the statement of activities. Program revenues include (a) fees and charges paid by
the recipients of goods or services offered by the programs and (b) grants and contributions that are
restricted to meeting the operational or capital requirements of a particular program. Revenues that are not
classified as program revenues, including all taxes, are presented as general revenues.
öÇÎØ öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ The fund financial statements provide information about the City’s funds.
Separate statements for each fund category – ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÎØ ÌÊÍÌÊÓ×ÈÛÊà – are presented. The emphasis
32
of fund financial statements is on major governmental and enterprise funds, each displayed in a separate
column. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds.
Proprietary fund operating revenues, such as charges for services, result from exchange transactions
associated with the principal activity of the fund. Exchange transactions are those in which each party
receives and gives up essentially equal values. Nonoperating revenues, 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:
õ×Î×ÊÛÐ öÇÎØ. 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 sources 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, sanitation services, culture
and recreation activities, and general government services.
The City reports the following major enterprise funds:
åÛÈ×Ê ÛÎØ é×Å×Ê öÇÎØ This fund is used to account for the activities associated with the production,
distribution and transmission of potable water and the activities associated with operating and maintaining
the City’s sewer and surface drainage systems.
÷Ð×ÙÈÊÓÙ öÇÎØ This fund is used to account for the activities associated with the distribution and
transmission of electricity by the City to its users.
îÛÈÇÊÛÐ õÛÉ öÇÎØThis fund is used to account for the activities associated with the distribution of
natural gas by the City to its users.
ûÓÊÌÍÊÈ öÇÎØ. This fund is used to account for the activities associated with the operation of the City’s
Airport.
ûËÇÛÈÓÙÉ ÛÎØ öÓÈÎ×ÉÉ ù×ÎÈ×Ê öÇÎØ This fund is used to account for the activities associated with the
operation of the City’s Aquatics and Fitness Center.
C. ï×ÛÉÇÊ×Ï×ÎÈ öÍÙÇÉ ÛÎØ úÛÉÓÉ ÍÖ ûÙÙÍÇÎÈÓÎÕ
In accordance with North Carolina General Statutes, all funds of the City are maintained during the year
using the modified accrual basis of accounting.
õÍÆ×ÊÎÏ×ÎÈÅÓØ× ÛÎØ ìÊÍÌÊÓ×ÈÛÊà öÇÎØ öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ The government-wide and proprietary
financial statements are reported using the economic resources measurement focus. The government-wide
and proprietary fund financial statements are reported using the accrual basis of accounting. Revenues are
recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the
related cash flows take place. Nonexchange 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 accrual basis, revenue from property taxes is recognized in the fiscal 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, 2) 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 revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the
33
City enterprise funds are charges to customers for sales and services. The City also recognizes as operating
revenue the portion of fees intended to recover the cost of connecting new or reconnecting current
customers to the water and sewer system. Operating expenses for enterprise funds and internal service
funds include the cost of sales and services, administrative expenses and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.
õÍÆ×ÊÎÏ×ÎÈÛÐ öÇÎØ öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈÉ 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 2010 through February 2011 apply to the fiscal
year ended June 30, 2011. 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.úÇØÕ×ÈÛÊà øÛÈÛ
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
34
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.
E.ûÉÉ×ÈÉ ðÓÛÚÓÐÓÈÓ×É ÛÎØ öÇÎØ ÷ËÇÓÈÃ
1.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.
2.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.
3.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.
4.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 1st, 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, 2010. As allowed by State law, the City has established a
35
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.
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 Doubtful 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.
7.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:
Estimated
Asset Class 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:
Estimated
Useful Lives
Asset Class
Buildings 40
Furniture/Equipment 5 - 7
36
Vehicles5
The Tourism Development Authority had no capital assets at June 30, 2011.
9.Deferred/Unearned Revenues
Governmental funds report deferred revenue in connection 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 government-wide financial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in 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 payable are reported net of the
applicable bond premiums or discount. Bond issuance costs are reported as deferred charges and amortized
over the term of 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. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
11.Compensated Absences
The vacation policy of the City provides for the accumulation of earned vacation leave with such leave
being fully vested when earned as follows:
÷ÏÌÐÍÃ××É ÔÓÊ×Ø Ú×ÖÍÊ× òÇÐÃ
Vacation leave may be accumulated without any applicable maximum until June 30 each year. However, if
the employee separates from service, payment for accumulated vacation leave 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 carried forward to July 1 of the next
fiscal year. The remaining excess amount will be converted to sick leave and added to the employee’s sick
leave balance.
÷ÏÌÐÍÃ××É ÔÓÊ×Ø ÛÖÈ×Ê òÇÐÃ
Vacation leave may be accumulated without any applicable maximum until June 30 of each year.
However, if the employee separates from service, payment for accumulated vacation leave shall not exceed
two times the employee’s annual accrual rate (i.e. if the accrual rate is 15 days per year, the employee may
only be paid for 30 days). On June 30 of each year, each employee may only carry over into the new fiscal
year two times the employee’s annual accrual rate. The remaining excess amount will be converted to sick
leave and added to the employee’s sick leave balance.
Employees of the City of Monroe ABC Board earn two weeks paid vacation each year. Employees must
take vacation leave in the year earned and are not allowed to carry forward any vacation time to subsequent
years.
The Tourism Development Authority had one employee during the year ended June 30, 2011 and falls
under the City’s vacation policy.
For the City's government-wide and proprietary funds, an expense and a liability for compensated absences
and the salary-related payments are recorded as the leave is earned. The City has assumed a first-in, first-
out method of using accumulated compensated time. The portion of that time that is estimated to be used
37
in the next fiscal year has been designated as a current liability in the government-wide financial
statements.
The City’s, the ABC Board’s, and the Tourism Development Authority’s sick leave policies provide for an
unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave
accumulated at the time of retirement may be used in the determination of length of service for retirement
benefit purposes. Since neither the City, the ABC Board, nor the Tourism Development Authority has any
obligation for the accumulated sick leave until it is actually taken, no accrual for sick leave has been made.
12.Net Assets/Fund Balances
î×È ûÉÉ×ÈÉ
Net assets in government-wide and proprietary fund financial statements are classified as invested in
capital assets, net of related debt; restricted; and unrestricted. Restricted net assets represent constraints on
resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of
other governments or imposed by law through state statute.
öÇÎØ úÛÐÛÎÙ×É
In the governmental fund financial statements, fund balance is composed of five classifications designed to
disclose the hierarchy of constraints placed on how fund balance can be spent.
The governmental fund types classify fund balances as follows:
Nonspendable Fund Balance – This classification includes amounts that cannot be spent because
they are either (a) not in spendable form or (b) legally or contractually required to be maintained
intact.
Inventories – Portion of fund balance that is not an available resource because it
represents the year-end balance of ending inventories, which are not spendable resources.
Restricted Fund Balance – This classification includes amounts that are restricted to specific
purposes externally imposed by creditors or imposed by law.
Restricted for Stabilization by State Statute – Portion of fund balance that is restricted by
State Statute [G.S. 159-8(a)].
Restricted for Streets – Powell Bill portion of fund balance that is restricted by revenue
source for street construction and maintenance expenditures. This amount represents the
balance of the total unexpended Powell Bill funds.
Classified Fund Balance – Portion of fund balance that can only be used for specific purposes by
majority vote by quorum of the City of Monroe’s governing body (highest level of decision-
making authority). Any changes or removal of specific purpose requires majority action by the
governing body.
Assigned Fund Balance – Portion of fund balance that the City of Monroe intends to use for
specific purposes.
Subsequent Year’s Expenditures – Portion of fund balance that is appropriated in the
next year’s budget that is not already classified in restricted or committed. The
governing body approves the appropriation; however the budget ordinance authorizes the
manager to modify the appropriations by resource or appropriation within funds up to
$100,000.
Unassigned Fund Balance – The portion of fund balance that has not been restricted, committed,
or assigned to specific purposes or other funds.
38
The City of Monroe has a revenue spending policy that provides guidance for programs with multiple
revenue sources. The Finance Officer will use resources in the following hierarchy: bond proceeds,
federal funds, state funds, local non-city funds, city funds. For purposes of fund balance classification
expenditures are to be spent from restricted fund balance first, followed in-order by committed fund
balance, assigned fund balance and lastly unassigned fund balance. The Finance Officer has the authority
to deviate from this policy if it is in the best interest of the City.
The City of Monroe has also adopted a minimum fund balance policy for the general fund which instructs
management to conduct the business of the City in such a manner that available fund balance is at least
equal to or greater than 25% of the next year’s budget, net of Federal and State pass-through revenues.
Any portion of the general fund balance in excess of the 25% minimum requirement may be appropriated
by City Council in a subsequent fiscal year to fund capital or debt service expenditures as determined by
the City Council during the budget process. If during a fiscal year an excess over the stipulated 25%
exists, the City Council may request an appropriation to fund unforeseen needs.
13.Management Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions that affect the 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 expenditures/expenses 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 governmental funds. These transactions
are recorded as “Transfers – to other funds” in the General Fund and “Transfers – from other funds” in the
receiving fund.
II.ê÷ùíîùóðóûèóíî íö õíæ÷êîï÷îèåóø÷ ûîø öçîø öóîûîùóûð éèûè÷ï÷îèé
A.÷ÄÌÐÛÎÛÈÓÍÎ ÍÖ Ù×ÊÈÛÓÎ ØÓÖÖ×Ê×ÎÙ×É Ú×ÈÅ××Î ÈÔ× ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÖÇÎØ ÚÛÐÛÎÙ× ÉÔ××È ÛÎØ ÈÔ×
ÕÍÆ×ÊÎÏ×ÎÈÅÓØ× ÉÈÛÈ×Ï×ÎÈ ÍÖ Î×È ÛÉÉ×ÈÉ
The governmental fund balance sheet includes reconciliation between ÖÇÎØ ÚÛÐÛÎÙ× ÈÍÈÛÐ ÕÍÆ×ÊÎÏ×ÎÈÛÐ
ÖÇÎØÉ and Î×È ÛÉÉ×ÈÉ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É 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 $ 6,736,340
Compensated absences 1,663,895
Net OPEB liability 2,694,766
Net adjustment to reduce ÖÇÎØ ÚÛÐÛÎÙ× ÈÍÈÛÐ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÖÇÎØÉ
to arrive at Î×È ÛÉÉ×ÈÉ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É$ 11,095,001
B.÷ÄÌÐÛÎÛÈÓÍÎ ÍÖ Ù×ÊÈÛÓÎ ØÓÖÖ×Ê×ÎÙ×É Ú×ÈÅ××Î ÈÔ× ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÖÇÎØ ÉÈÛÈ×Ï×ÎÈ ÍÖ Ê×Æ×ÎÇ×É
×ÄÌ×ÎØÓÈÇÊ×É ÛÎØ ÙÔÛÎÕ×É ÓÎ ÖÇÎØ ÚÛÐÛÎÙ×É ÛÎØ ÈÔ× ÕÍÆ×ÊÎÏ×ÎÈÅÓØ× ÉÈÛÈ×Ï×ÎÈ ÍÖ ÛÙÈÓÆÓÈÓ×É
The government fund statement of revenues, expenditures, and changes in fund balances includes
reconciliation between Î×È ÙÔÛÎÕ× ÓÎ ÖÇÎØ ÚÛÐÛÎÙ×É ÈÍÈÛÐ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÖÇÎØÉ and ÙÔÛÎÕ× ÓÎ Î×È ÛÉÉ×ÈÉ ÍÖ
ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É 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 $(3,055,197) difference are as follows:
39
Capital outlay $ 1,090,527
Depreciation expense (4,146,064)
Net adjustment to decrease Î×È ÙÔÛÎÕ× ÓÎ ÖÇÎØ ÚÛÐÛÎÙ×É ÈÍÈÛÐ ÕÍÆ×ÊÎÏ×ÎÈÛÐ
ÖÇÎØÉ to arrive at ÙÔÛÎÕ× ÓÎÎ×È ÛÉÉ×ÈÉ ÍÖ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É$ (3,055,197)
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 $1,473,118 are as follows:
Debt issued or incurred:
Installment purchase obligations $ (263,600)
Principal payments:
Installment purchase obligations 1,736,718
Net adjustment to increase Î×È ÙÔÛÎÕ× ÓÎ ÖÇÎØ ÚÛÐÛÎÙ×É ÈÍÈÛÐ ÕÍÆ×ÊÎÏ×ÎÈÛÐ
ÖÇÎØÉ to arrive at ÙÔÛÎÕ× ÓÎ Î×È ÛÉÉ×ÈÉ ÍÖ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É$ 1,473,118
III.ø÷èûóð îíè÷é íî ûðð öçîøé
A.ûÉÉ×ÈÉ
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
federal depository insurance coverage level are collateralized with securities held 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 a 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 Treasurer is acting in a fiduciary
capacity for the City, the ABC Board, and the Tourism Development Authority, these deposits are
considered to be held by the City's, the ABC Board’s, and the Tourism Development Authority’s agents in
their names. The amount of the pledged collateral is based on an approved averaging method for non-
interest bearing deposits and the actual current balance for interest bearing deposits. Depositories using the
Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured
deposits. The State Treasurer does not confirm this information with the City, the ABC Board, the
Tourism Development Authority, or the escrow 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-collateralization, and this risk may increase in periods of
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
pooling method financial institutions and to monitor them for compliance. The City, the ABC Board and
the Tourism Development Authority comply with the provisions of G.S. 159-31 when designating official
depositories and verifying that deposits are properly secured.
At June 30, 2011 the City's deposits had a carrying amount of $8,931,225 and a bank balance of
$8,874,665. In addition, there was $553,360 in an escrow account with a trustee of unspent bond and
installment financing proceeds. Of the bank balance, $500,000 was covered by federal depository
insurance and the remainder was covered by collateral held under the Pooling Method. The City’s petty
cash fund totaled $5,075.
40
At June 30, 2011 the ABC Board’s deposits had a carrying amount of $541,896 and a bank balance of
$637,920. Of the bank balance, $250,000 was covered by federal depository insurance, and $387,920 was
covered by collateral held under the Pooling Method. The ABC Board had an additional $3,900 in the
drawers and petty cash to cover operating needs on a daily basis.
At June 30, 2011, the Tourism Development Authority’s deposits had a carrying amount of $137,956 and a
bank balance of $137,956. The entire balance was covered by federal depository insurance.
2. Investments
As of June 30, 2011, the City had the following investments and maturities:
1 – 3 3 – 5
Investment Type Fair Value 1 Year YearsYears
U.S. Government Agencies $86,861,045$-$- $86,861,045
NC Capital Management Trust –
Cash Portfolio 8,451,197N/AN/AN/A
NC Capital Management Trust –
Term Portfolio 325,648325,648--
Total 95,637,890
$
óÎÈ×Ê×ÉÈ êÛÈ× êÓÉÑ The City does not have a formal investment policy that limits investment maturities as a
means of managing its exposure to fair value losses arising from increasing interest rates.
ùÊ×ØÓÈ êÓÉÑ The City has no formal policy regarding credit risk, but has internal management procedures
that limits the City’s investments to the provisions of G.S. 159-30 and restricts the purchase of securities to
the highest possible ratings whenever particular types of securities are rated. The investment in U.S.
Government Agencies (Federal Home Loan Bank) is rated AAA by Standard and Poor’s and Aaa by
Moody’s Investors Service. The City’s investment in the NC Capital Management Trust Cash Portfolio
carried a credit rating of AAAm by Standard and Poor’s as of June 30, 2011. The City’s investment in the
NC Capital Management Trust Term Portfolio is unrated. The Term Portfolio is authorized to invest in
obligations of the U.S. government and agencies, and in high grade money market instruments as permitted
under North Carolina General Statutes 159-30 as amended.
ùÇÉÈÍØÓÛÐ ùÊ×ØÓÈ êÓÉÑ For an investment, the custodial risk is the risk that in the event of the failure of the
counterparty, the City will not be able to recover the value of its investments or collateral securities that are
in the possession of an outside party. The City has no policy on custodial credit risk.
ùÍÎÙ×ÎÈÊÛÈÓÍÎ ÍÖ ùÊ×ØÓÈ êÓÉÑ The City’s Board places no limit on the amount that the City may invest in
any one issuer. More than 5 percent of the City’s investments are in Federal Home Loan Bank securities.
This investment is 30% of the City’s total investments. In addition, the City had 9.2% of its investment
portfolio in the NCCMT – cash portfolio at June 30, 2011.
3.NoteReceivable
The City granted a promissory note in the amount of $404,921 to an electric customer to reimburse the cost
and installation of equipment during the fiscal year 2006. The remaining balance of the promissory note is
payable in quarterly installments of $20,963 through August 2010. The note calls for interest to be paid
quarterly at the applicable prime rate. Principal collections on the note receivable for the fiscal year ended
totaled $20,963. The note was paid in full during the fiscal year ended June 30, 2011.
The City granted promissory notes to an electric customer to reimburse the cost and installation of
equipment. The remaining balances of the promissory notes are payable in monthly installments. Due to
the nature of the terms agreed upon the payment amounts will vary and are unpredictable. The monthly
payment amounts are determined as follows:
Each month electric charges will be calculated based on the LICPNC rate (LICPNC Bill) and
41
electric charges will be calculated based on the LICPNC rate assuming peak generation had not
been used (LICPNC Bill No Generation). The difference in these rate calculations (i.e. LICPNC
Bill No Generation – LICPNC Bill) will be used to fund the City’s recovery of one half of the
installed cost of the generator. The customer’s monthly bill will equal the LICPNC Bill plus one
half of the difference in the LICPNC Bill No Generation and the LICPNC Bill.
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 2012. The agreement is non
interest bearing and is secured by equipment. Principal collections on the note receivable for the fiscal
year ended totaled $390,743. 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, 2011.
2011
Total receivable $ 311,768
Less current portion 311,768
Total Note Receivable – Noncurrent $ -
Scheduled future maturities of the note receivable are as follows:
2012 $ 311,768
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 2020. 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 $237,234. 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, 2011.
2011
Total receivable $ 1,994,761
Less current portion 230,000
Total Note Receivable – Noncurrent $ 1,764,761
Scheduled future maturities of the note receivable are as follows:
2012$ 230,000
2013230,000
2014230,000
2015230,000
2016230,000
Thereafter844,761
$ 1,994,761
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, 2011 totaled
$918,163.
2011
Total receivable $ 5,032,806
Less current portion 918,163
Total Note Receivable – Noncurrent $ 4,114,643
Scheduled future maturities of the note receivable are as follows:
42
2012$ 918,163
2013969,183
20141,023,039
20151,079,884
20161,042,537
$ 5,032,806
The City granted a promissory note in December 2010 in the amount of $1,250,000 to a developer as an
incentive agreement to undertake an economic development project to renovate and rehabilitate a
downtown historic structure. The note allows for no interest and is secured by property. No payments are
required for the first three years. Beginning in December 2013, the promissory note will be repaid through
monthly installments of $10,417 through November 2023.
2011
Total receivable $ 1,250,000
Less current portion -
Total Note Receivable – Noncurrent $ 1,250,000
Scheduled future maturities of the note receivable are as follows:
2012$ -
2013-
201472,916
2015125,000
2016125,000
Thereafter927,084
$ 1,250,000
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 $ 16,773
5.CapitalAssets
Primary Government
Capital asset activity for the primary government for the year ended June 30, 2011, was as follows:
Beginning Ending
IncreasesDecreases Balances
Balances
õÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É
õ×Î×ÊÛÐ öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Land and land improvements $4,596,793$83,700$-$4,680,493
Construction in progress 1,095,617337,5781,428,1035,092
Total capital assets not being depreciated 5,692,410 421,278 1,428,103 4,685,585
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 19,631,1231,419,946-21,051,069
Equipment 4,066,875289,769-4,356,644
Vehicles and motorized equipment 13,335,134217,162166,77213,385,524
Other intangibles418,4108,079-426,489
Infrastructure 87,133,745 88,000-87,221,745
43
Beginning Ending
BalancesIncreasesDecreasesBalances
Total capital assets being depreciated 124,585,287 2,022,956 166,772 126,441,471
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 7,063,022516,971-7,579,993
Equipment 2,602,856298,968-2,901,824
Vehicles and motorized equipment 9,359,7871,061,97825,67910,396,086
Other intangibles 73,71476,522-150,236
Infrastructure 29,843,969 2,122,833-31,966,802
Total accumulated depreciation 48,943,348$4,077,272 $ 25,679 52,994,941
Total capital assets being depreciated, net 75,641,939 73,446,530
õ×Î×ÊÛÐ öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È 81,334,349 78,132,115
øÍÅÎÈÍÅÎ ïÍÎÊÍ× öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Land and land improvements 80,149--80,149
Total capital assets not being depreciated
80,149 - - 80,149
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Equipment 98,071 - - 98,071
Total capital assets being depreciated 98,071 - - 98,071
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Equipment 7,005 14,010 - 21,015
Total capital assets being depreciated, net 91,006 77,056
171,215 157,205
øÍÅÎÈÍÅÎ ïÍÎÊÍ× öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
íÙÙÇÌÛÎÙÃ èÛÄ öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Equipment - 150,000 - 150,000
Total capital assets being depreciated - 150,000 - 150,000
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Equipment - 10,714 - 10,714
Total accumulated depreciation -$10,714 $ - 10,714
Total capital assets being depreciated, net - 139,286
- 139,286
íÙÙÇÌÛÎÙà èÛÄ öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
$81,505,564$78,428,606
õÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
Depreciation expense was charged to functions/programs of the primary government as follows:
General government
$
311,109
Transportation
2,389,053
Public safety
906,161
Culture and recreation
494,158
Economic and physical development
1,515
Total depreciation expense $4,101,996
44
Beginning Ending
BalancesIncreasesDecreasesBalances
úÇÉÓÎ×ÉÉÈÃÌ× ÛÙÈÓÆÓÈÓ×É
åÛÈ×Ê ÛÎØ é×Å×Ê öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
$ 829,827 $ -
Land and land improvements $ - $829,827
1,138,848 576,552 1,250,467464,933
Construction in progress
Total capital assets not being depreciated 1,968,675 576,552 1,250,467 1,294,760
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 22,879,384--22,879,384
2,751,930703,129-3,455,059
Equipment
Vehicles and motorized equipment 2,877,019138,84639,2332,976,632
Infrastructure60,181,425493,321-60,674,746
88,689,758
Total capital assets being depreciated 1,335,296 39,233 89,985,821
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 9,888,812479,731-10,368,543
Equipment 1,638,530227,436-1,865,966
Vehicles and motorized equipment 2,316,642272,23536,5252,552,352
Infrastructure 11,475,4661,064,820-12,540,286
Total accumulated depreciation 25,319,450 2,044,222 36,525 27,327,147
Total capital assets being depreciated, net 63,370,30862,658,674
åÛÈ×Ê ÛÎØ é×Å×Ê öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È 65,338,98363,953,434
÷Ð×ÙÈÊÓÙ öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
4,520,094-101,7114,418,383
Land and land improvements
Construction in progress 21,286,0393,567,22311,139,64313,713,619
Total capital assets not being depreciated 25,806,133 3,567,223 11,241,354 18,132,002
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 703,349--703,349
Equipment 4,515,395--4,515,395
Vehicles and motorized equipment 2,552,773340,746133,1452,760,374
Infrastructure63,318,57812,946,557-76,265,135
Total capital assets being depreciated 71,090,095 13,287,303 133,145 84,244,253
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 75,26215,536-90,798
Equipment 2,367,432400,64281,9282,686,146
Vehicles and motorized equipment 1,519,764266,381133,1451,653,000
Infrastructure23,799,7451,680,364-25,480,109
Total accumulated depreciation 27,762,203 2,362,923 215,073 29,910,053
Total capital assets being depreciated, net 43,327,892 54,334,200
69,134,025 72,466,202
÷Ð×ÙÈÊÓÙ öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
îÛÈÇÊÛÐ õÛÉ öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Land and land improvements 780,785--780,785
Construction in progress 43,930,9981,661,426 41,387,5144,204,910
Total capital assets not being depreciated 44,711,7831,661,42641,387,514 4,985,695
45
Beginning Ending
BalancesIncreasesDecreasesBalances
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 569,484--569,484
Equipment 647,34568,404-715,749
Vehicles and motorized equipment 662,736108,873-771,609
Infrastructure 16,737,93241,781,524-58,519,456
Total capital assets being depreciated 18,617,497 41,958,801 - 60,576,298
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 126,87013,256-140,126
Equipment 185,31977,646-262,965
Vehicles and motorized equipment 413,73450,715-464,449
Infrastructure4,225,232805,138-5,030,370
Total accumulated depreciation 4,951,155 946,755 - 5,897,910
Total capital assets being depreciated, net 13,666,342 54,678,388
58,378,125 59,664,083
îÛÈÇÊÛÐ õÛÉ öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
ûÓÊÌÍÊÈ öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Land and land improvements 8,337,466 1,072,681-9,410,147
Construction in progress 8,436,2902,780,1654,072,0217,144,434
Total capital assets not being depreciated 16,773,756 3,852,846 4,072,021 16,554,581
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 14,096,12834,145-14,130,273
Equipment 456,339--456,339
Vehicles and motorized equipment 410,60175,88427,340459,145
Infrastructure 153,4002,939,187-3,092,587
Total capital assets being depreciated 15,116,468 3,049,216 27,340 18,138,344
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 6,240,421491,150-6,731,571
Equipment 190,18055,209-245,389
Vehicles and motorized equipment 157,23977,70818,500216,447
Infrastructure 1,53432,460-33,994
Total accumulated depreciation 6,589,374 656,527 18,500 7,227,401
Total capital assets being depreciated, net
8,527,09410,910,943
ûÓÊÌÍÊÈ öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È 25,300,85027,465,524
ûËÇÛÈÓÙÉ ÛÎØ öÓÈÎ×ÉÉ ù×ÎÈ×Ê öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Land and land improvements 925,594--925,594
Total capital assets not being depreciated 925,594- - 925,594
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 9,431,009--9,431,009
Equipment 111,467--111,467
29,817
Vehicles and motorized equipment 12,280-42,097
Total capital assets being depreciated 9,554,756 29,817 - 9,584,573
46
Beginning Ending
BalancesIncreasesDecreasesBalances
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 2,334,651254,383-2,589,034
Equipment 39,95710,842-50,799
Vehicles and motorized equipment 9,53921,738-31,277
Total accumulated depreciation 2,384,147 286,963 - 2,671,110
Total capital assets being depreciated, net 7,170,609 6,913,463
ûËÇÛÈÓÙÉ ÛÎØ öÓÈÎ×ÉÉ öÇÎØ ÙÛÌÓÈÛÐ
ÛÉÉ×ÈÉ Î×È 8,096,203 7,839,057
éÈÍÊÏÅÛÈ×Ê öÇÎØ
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Equipment 20,724 5,224 - 25,948
Vehicles and motorized equipment 669,779 - - 669,779
Total capital assets being depreciated 690,503 5,224 - 695,727
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Equipment 2,2753,334-5,609
Vehicles and motorized equipment 353,648 56,992 - 410,640
Total accumulated depreciation 355,923 $60,326 $ - 416,249
Total capital assets being depreciated, net 334,580 279,478
334,580 279,478
éÈÍÊÏÅÛÈ×Ê öÇÎØ ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
$226,582,766 $231,667,778
úÇÉÓÎ×ÉÉÈÃÌ× ÛÙÈÓÆÓÈÓ×É ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È
ùÍÎÉÈÊÇÙÈÓÍÎ ÙÍÏÏÓÈÏ×ÎÈÉ
The government has active construction projects as of June 30, 2011. At year end, the government's commitments
with contractors are as follows:
Spent-to- Remaining
ProjectsDateCommitment
Governmental
Capital Projects $5,092 $-
Enterprise
Water and Sewer 464,933 181,230
Electric 13,713,619 2,989,877
Natural Gas 4,204,911 1,549,203
Airport 7,144,434 1,099,565
Total $ 25,532,989$5,819,875
Discretely presented component units
Capital asset activity for the ABC Board for the year ended June 30, 2011, was as follows:
47
Beginning Ending
BalancesIncreasesDecreases Balances
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ ÎÍÈ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Land and land improvements $317,013$ - $ - $317,013
ùÛÌÓÈÛÐ ÛÉÉ×ÈÉ Ú×ÓÎÕ Ø×ÌÊ×ÙÓÛÈ×Ø
Buildings and improvements 1,037,379- - 1,037,379
Equipment 117,13235,02931,194120,967
Vehicles and motorized equipment 15,830 - - 15,830
Total capital assets being depreciated 1,170,341 35,029 31,194 1,174,176
ð×ÉÉ ÛÙÙÇÏÇÐÛÈ×Ø Ø×ÌÊ×ÙÓÛÈÓÍÎ ÖÍÊ
Buildings and improvements 306,78928,371 - 335,160
103,1327,093
Equipment 31,19479,031
Vehicles and motorized equipment 15,830- - 15,830
Total accumulated depreciation 425,751 $35,464 $ 31,194 430,021
Total capital assets being depreciated, net 744,590 744,155
ûúù úÍÛÊØ
$$
ÙÛÌÓÈÛÐ ÛÉÉ×ÈÉ Î×È 1,061,6031,061,168
The Tourism Development Authority had no capital assets.
B.ðÓÛÚÓÐÓÈÓ×É
1.Accounts Payable and Accrued Liabilities
Payables at the government-wide level at June 30, 2011, were as follows:
Salaries and
VendorsBenefits OtherTotal
Governmental activities:
General Fund $613,667 $- $ - $613,667
Nonmajor Funds 50,718 - - 50,718
Total-governmental activities $664,385 $- $ - $664,385
Business-type activities:
Enterprise Funds $5,835,037 $- $ - $5,835,037
Component units’ payables at June 30, 2011, were as follows:
Salaries
and
VendorsBenefits OtherTotal
ABC Board $287,719 $255 $ 32,500 $320,474
Tourism Development Authority $2,356 $- $ 664 $3,020
2.Pension Plan Obligations
a.ðÍÙÛÐ õÍÆ×ÊÎÏ×ÎÈÛÐ ÷ÏÌÐÍÃ××É ê×ÈÓÊ×Ï×ÎÈ éÃÉÈ×Ï
ìÐÛÎ ø×ÉÙÊÓÌÈÓÍÎ 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 benefit provisions to the North Carolina General Assembly. The Local Governmental
Employees’ Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the
48
State of North Carolina. The State’s CAFR includes financial statements and required supplementary
information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410
Mail Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.
öÇÎØÓÎÕ ìÍÐÓÙà 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 determined rate. For the City, the
current rate for employees not engaged in law enforcement and for law enforcement officers is 6.44% and
6.41%, respectively, of annual covered payroll. For the ABC Board, the current rate for employees 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 LGERS for the years ended June 30, 2011, 2010, and 2009, were $1,068,767,
$1,084,527, and $1,058,105, respectively. The ABC Board’s contributions to LGERS for the years ended
June 30, 2011, 2010, and 2009 were $15,340, $14,210, and $13,394, respectively. The contributions made
by the City and the ABC Board equaled the required contributions for each year.
b. ðÛÅ ÷ÎÖÍÊÙ×Ï×ÎÈ íÖÖÓÙ×ÊÉ éÌ×ÙÓÛÐ é×ÌÛÊÛÈÓÍÎ ûÐÐÍÅÛÎÙ×
ìÐÛÎ ø×ÉÙÊÓÌÈÓÍÎ
The City of Monroe administers a public employee retirement system (the “Separation Allowance”), a
single-employer defined benefit pension plan that provides retirement benefits to the City’s qualified sworn
law enforcement officers. The Separation Allowance is equal to .85 percent of the annual equivalent of the
base rate of compensation most recently applicable to the officer for each year of creditable service. The
retirement benefits are not subject to any increases in salary or retirement allowances that may be
authorized by the General Assembly. Article 12D of G.S. 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 by the Separation Allowance. At December
31, 2009, the Separation Allowance’s membership consisted of:
Retirees receiving benefits 11
Terminated plan members entitled to
but not yet receiving benefits -
Active plan members 85
Total 96
A separate report was not issued for the plan.
éÇÏÏÛÊà ÍÖ éÓÕÎÓÖÓÙÛÎÈ ûÙÙÍÇÎÈÓÎÕ ìÍÐÓÙÓ×É
úÛÉÓÉ ÍÖ ûÙÙÍÇÎÈÓÎÕ The City has chosen to fund the Separation Allowance on a pay as you go basis.
Pension expenditures are made from the General Fund, which is maintained on the modified accrual basis
of accounting.
ï×ÈÔÍØ çÉ×Ø ÈÍ æÛÐÇ× óÎÆ×ÉÈÏ×ÎÈÉ No funds are set aside to pay benefits and administration costs. These
expenditures are paid as they come due.
ùÍÎÈÊÓÚÇÈÓÍÎÉ
The City is required by Article 12D of G. S. Chapter 143 to provide these retirement benefits and has
chosen to fund the benefit payments on a pay as you 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 by employees. The annual
required contribution for the current year was determined as part of the December 31, 2009 actuarial
valuation using the projected unit credit actuarial cost method. The actuarial assumptions included (a)
49
5.00% 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, 2009 was
21 years.
ûÎÎÇÛÐ ì×ÎÉÓÍÎ ùÍÉÈ ÛÎØ î×È ì×ÎÉÓÍÎ íÚÐÓÕÛÈÓÍÎ 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 $ 225,936
Interest on net pension obligation (6,467)
Adjustment to annual required contribution 6,924
Annual pension cost 226,393
Contributions made 166,395
Decrease in net pension obligation 59,998
Net pension obligation, beginning of year (129,330)
Net prepaid pension obligation, end of year $ (69,332)
3 Year Trend Information
For Year Annual Pension Percentage of Net Pension
Ended Cost APC Obligation
June 30 (APC)Contributed (Prepayment)
2009 $ 163,225 101.71% $(132,123)
2010 173,111 98.39% (129,330)
2011 226,393 73.50% (69,332)
öÇÎØ×Ø éÈÛÈÇÉ ÛÎØ öÇÎØÓÎÕ ìÊÍÕÊ×ÉÉ
As of December 31, 2010, 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 $1,852,860. The
covered payroll (annual payroll of active employees covered by the plan) was $4,406,310, and the ratio of
the UAAL to the covered payroll was 42.05%.
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.éÇÌÌÐ×Ï×ÎÈÛÐ ê×ÈÓÊ×Ï×ÎÈ óÎÙÍÏ× ìÐÛÎ
ðÛÅ ÷ÎÖÍÊÙ×Ï×ÎÈ íÖÖÓÙ×ÊÉ
ìÐÛÎ ø×ÉÙÊÓÌÈÓÍÎ 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.
öÇÎØÓÎÕ ìÍÐÓÙà 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, 2011, were $295,686 which consisted of $220,177 from the City and $75,509 from the law
enforcement officers.
õ×Î×ÊÛÐ ÷ÏÌÐÍÃ××É
50
The City has elected to contribute 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 an amount equal to five percent of each employee’s salary, and all
amounts contributed are vested immediately. Also, the employees may make voluntary contributions to the
plan. Contributions for the year ended June 30, 2011, were $1,276,216, which consisted of $848,590 from
the City and $427,626 from the employees.
d.öÓÊ×Ï×뻃 ÛÎØ ê×ÉÙÇ× éËÇÛØ åÍÊÑ×Êɪ ì×ÎÉÓÍÎ öÇÎØ
ìÐÛÎ ø×ÉÙÊÓÌÈÓÍÎ. The State of North Carolina contributes, on behalf 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 funding situation administered by the State of North Carolina. The
Fund provides pension benefits for eligible fire and rescue squad workers that have elected to become
members of the fund. Article 86 of G.S. Chapter 58 assigns the authority to establish and amend benefit
provisions to the North Carolina General Assembly. The Firemen’s and Rescue Squad Workers’ Pension
Fund is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina.
The State’s CAFR includes financial statements and required supplementary information for the Fund.
That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center,
Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.
öÇÎØÓÎÕ ìÍÐÓÙà Plan members are required to contribute $10 per month to the Fund. The State, a non-
employer contributor, funds the plan through appropriations. The City does not contribute to the Fund.
Contribution requirements of plan members and the State of North Carolina are established and may be
amended by the North Carolina General Assembly.
íÎú×ÔÛÐÖ ìÛÃÏ×ÎÈÉ. For the fiscal year ended June 30, 2011, the City of Monroe has recognized on-
behalf payments for pension contributions made by the state as a revenue and an expenditure of $16,383
for the 49 employed 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.
e.íÈÔ×Ê ìÍÉÈ×ÏÌÐÍÃÏ×ÎÈ ú×Î×ÖÓÈÉ
Healthcare Benefits
ìÐÛÎ ø×ÉÙÊÓÌÈÓÍÎ
Under the terms of a City resolution, the City administers a single employer Health and Dental Care Plan.
This plan provides postemployment healthcare 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 of creditable service with the City. The amount the City pays towards these benefits is based on
years of service with the City. The City pays the full cost of coverage for these benefits through private
insurers. A stand-alone financial report is not issued.
öÇÎØÓÎÕ ìÍÐÓÙÃ
Employees with 20 to 25 years of service – the City pays 50% and 75% of the cost of health and dental
insurance, respectively.
Employees with 30 years of service – the City pays 100% of the cost of health and dental insurance. In
addition, retirees with 30 years of service receive $5,500 of life insurance coverage.
When a retiree reaches age 65, they are transferred to the Medicare Supplement Group Plan and Part D
Group Plan at the above referenced percentage of cost based on years of service. At that time, any
dependents covered are offered COBRA coverage.
51
Membership of the Health Care Plan consisted of the following at December 31, 2010:
All Employees
Retirees and dependents receiving benefits 71
Terminated plan members entitled to but
not yet receiving benefits -
Active plan members 485
Total 556
The current ARC rate is 6.89% of annual covered payroll. For the current year, the City contributed
$254,399 or 1.16% of annual covered payroll. For the year ended June 30, 2011, the City made payments
for postretirement health benefit premiums of $343,165. The City’s obligation to contribute to Health Care
Plan is established and may be amended by the City Council.
éÇÏÏÛÊà ÍÖ éÓÕÎÓÖÓÙÛÎÈ ûÙÙÍÇÎÈÓÎÕ ìÍÐÓÙÓ×É
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.
ûÎÎÇÛÐ íì÷ú ùÍÉÈ ÛÎØ î×È íì÷ú íÚÐÓÕÛÈÓÍÎ
The City’s annual OPEB cost (expense) is calculated on the ÛÎÎÇÛÐ Ê×ËÇÓÊ×Ø ÙÍÎÈÊÓÚÇÈÓÍÎ ÍÖ ÈÔ× ×ÏÌÐÍÃ×Ê
(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 $1,833,000
Interest on net obligation 90,800
Adjustment to annual required contribution (86,742)
Annual OPEB cost (expense) 1,837,058
Contributions made (254,399)
Increase (decrease) in net OPEB obligation 1,582,659
Net OPEB obligation, beginning of year 2,270,000
Net OPEB obligation, end of year $3,852,659
The City’s annual OPEB costs, the percentage of annual OPEB cost contributed to the plan, and the net
OPEB obligation for 2011 were as follows:
For Year
Annual Percentage of Annual Net OPEB
Ended June 30 OPEB Cost OPEB Cost Contributed Obligation
2010 $ 1,513,00026.2%$ 2,270,000
20111,837,05813.8%3,852,659
öÇÎØ×Ø éÈÛÈÇÉ ÛÎØ öÇÎØÓÎÕ ìÊÍÕÊ×ÉÉ
As of December 31, 2010, the most recent actuarial valuation date, the plan was not funded. The actuarial
accrued liability for benefits, and, thus the unfunded actuarial accrued liability (UAAL) was $20,670,010.
The covered payroll (annual payroll of active employees covered by the plan) was $21,957,134, and the
52
ratio of the UAAL to the covered payroll was 94.1%. Actuarial valuations of an ongoing plan involve
estimates of the value of reported amounts and assumptions about the probability of occurrence of events
far into the future. Examples include 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.
ûÙÈÇÛÊÓÛÐ ï×ÈÔÍØÉ ÛÎØ ûÉÉÇÏÌÈÓÍÎÉ
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 December 31, 2010 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 10.50 to 5.00 percent annually. Both rates
included a 3.00 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 December 31, 2010 was 30 years.
3.OtherEmploymentBenefits
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,
2011, the City made contributions to the State for death benefits of $21,702. 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.Deferred/Unearned Revenues
The balance in deferred or unearned revenue on the fund statements and unearned revenues on the
53
government-wide statements at year end is composed of the following elements:
Deferred Unearned
Revenue Revenue
Property taxes receivable:
General $ 1,179,608 $ -
Nonmajor governmental 2,744 -
Occupancy tax receivable 29,627-
Privilege license receivable:
General 21,683 -
Loans receivable:
Nonmajor governmental 16,773 -
Special vehicle tax receivable:
General 26,615 -
Code enforcement liens receivable:
General 94,963 -
Prepaid taxes and licenses:
General - 592,730
Total $ 1,372,013 $ 592,730
5.RiskManagement
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
54
experience and exposure risks associated with County operations and the availability of
unrestricted net assets to fund projected claims.
õÊÍÇÌ ô×ÛÐÈÔ óÎÉÇÊÛÎÙ×
Effective July 1, 2002, the City established an employee medical benefit plan to self-insure claims up to
$70,000 per year for each individual covered; claims above $70,000 and aggregate claims exceeding 125%
of expected incurred and paid claims are covered by a stop loss insurance policy.
åÍÊÑ×Êɪ ùÍÏÌ×ÎÉÛÈÓÍÎ óÎÉÇÊÛÎÙ×
The City has a self-funded workers’ compensation insurance plan. Through this plan the City has workers’
compensation coverage of up to the statutory limits. The self-insurance plan has a $400,000 retained risk
per occurrence for firefighters, police officers, and electrical line workers. All other employees have a
$350,000 retained risk per occurrence with a $1,000,000 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, 2011 are
considered to be current liabilities. Changes in the balance of claims liabilities during the year ended June
30, 2011 are as follows:
Health Benefit Workers’ Property &
FundCompensation Fund Casualty Fund
Unpaid claims as of June 30, 2009 475,548 15,646 57,747
Claims and premiums paid $ 5,584,603 $ 179,418 $ 522,008
Incurred claims and premiums (5,640,166) (181,583) (573,304)
Unpaid claims as of June 30, 2010 419,985 13,481 6,451
Claims and premiums paid 5,324,419 165,937 521,531
Incurred claims and premiums (5,584,603) (179,418) (522,008)
Unpaid claims as of June 30, 2011 $ 159,801 $ - $ 5,974
The City protects itself from potential loss through participation in the North Carolina League of
Municipalities Interlocal Risk Financing Fund of North Carolina for general liability, automobile liability,
public officials and law enforcement liability. The City maintains coverage of $5,000,000 for
comprehensive general liability, automobile liability, public officials and law enforcement liability. The
City’s potential loss for liability coverage is limited to the deductible amount of $50,000 per claim for all
coverage except for real and personal property which has a deductible of $25,000 per claim.
In accordance with G.S. 159-29, the City’s employees that have access to $100 or more at any given time
of the City’s funds are performance bonded through a commercial surety bond. The finance officer and tax
collector are each individually bonded for $250,000 each. The deputy tax collector is individually bonded
for $50,000. The remaining employees that have access to funds are bonded under a blanket bond for
$250,000.
The City of Monroe ABC Board is exposed to 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 is exposed to various risks of loss related to torts; theft of, damage to,
and destruction of assets; errors and omissions; and natural disasters. The Authority does 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 it is probable that a loss
has occurred and the amount of that loss can be reasonably estimated. Based on available information, the
Authority had no liability claims at June 30, 2011.
55
Claims,Judgements,andContingentLiabilities
The City was a defendant in various matters of litigation as of June 30, 2011. While any litigation contains
an element of uncertainty, City officials believe that the outcome of any lawsuit or claim which is pending,
or all of them combined, will not have a materially adverse effect on the City’s financial condition or
operations. In addition, there are known incidents that may result in the assertion of claims, as well as
claims from unknown incidents that may be asserted for which the City could be liable for a material
amount. However, since such claims have not been asserted and are not determinable or measurable, no
provision for loss has been included in the financial statements. Also, City officials believe the City’s
insurance is adequate for the actual or pending lawsuits or claims mentioned above.
7.Long-TermObligations
a.óÎÉÈÛÐÐÏ×ÎÈ ìÇÊÙÔÛÉ× íÚÐÓÕÛÈÓÍÎÉ
The City has entered into various installment purchase obligations to acquire certain equipment and to
finance building improvements:
GovernmentalEnterprise
FundsFundsTotal
Executed April 23, 1999, to finance construction
of an addition to the aquatics and fitness center,
requiring 26 semi-annual installments of $54,180
including interest at 4.48%. $-$52,993$52,993
Executed September 22, 1999, and refinanced on
May 19, 2004, to finance acquisition, renovation,
and furnishing of a police headquarters, requiring
21 semi-annual installments of $73,429 plus
interest at 2.80%. 514,000 - 514,000
Executed December 22, 2003, to finance
construction of an addition to the aquatics and
fitness center, requiring 20 semi-annual
installments of $182,145 including interest at
3.85%.-860,405860,405
Executed August 12, 2004, to finance construction
of a street maintenance building, requiring 30
semi-annual installments of $34,533 plus interest
at 3.89%. 587,067 -587,067
Executed June 15, 2007, to finance equipment,
requiring 10 semi-annual installments of $132,518
including interest at 3.8333%. 203,827 54,182258,009
Executed February 8, 2008, to finance facility
improvements, requiring 20 semi-annual
installments of $95,000 plus interest at 3.827%. 1,330,000-1,330,000
Executed June 20, 2008, to finance equipment,
requiring 10 semi-annual installments of $216,651
including interest at 3.19%. 600,245 233,429833,673
Executed June 15, 2009 to finance equipment, 10
semi-annual installments of $201,937 including
interest at 2.8378%. 780,921372,7371,153,658
56
Executed January 30, 2009 to finance construction
of a recreation center, requiring 30 semi-annual
installments of $79,724 plus interest at 4.570%. 2,072,824 - 2,072,824
Executed June 11, 2010, to finance equipment,
requiring 10 semi-annual installments of $181,609
including interest at 2.585%. 383,894 987,9891,371,883
Executed June 24, 2011, to finance equipment,
requiring 10 semi-annual installments of $82,034
including interest at 2.29%. 263,562507,538771,100
$ 6,736,340 $3,069,273 $ 9,805,613
Annual debt service payments of the installment purchase obligations as of June 30, 2011, are as follows:
Governmental Activities Business-Type Activities
Year Ending June 30 Principal Interest Principal Interest
2012$ 1,460,000 $235,339 $1,011,567 $ 83,954
20131,276,878187,724933,10952,573
2014982,886148,383657,99924,213
2015645,523117,574
360,3749,205
2016473,69696,071106,2241,727
2017-20211,418,973246,480--
2022-2025478,38438,256--
Total $ 6,736,340 $3,069,273
Total interest payments $1,069,827 $ 171,672
At June 30, 2011, the City had a legal debt margin of $235,387,906.
.ê×Æ×ÎÇ× úÍÎØÉ
b
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:
$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 $307,492 in unamoritized bond premiums
$
associated with the bonds.
29,667,489
$19,620,000 Combined Enterprise System Revenue Bonds, Series 2011,
due annually in amounts ranging from $945,000 to $1,460,000 through
March 1, 2028, interest rate varying between 2.0% and 5.0%. The
amount shown includes $1,048,939 in unamortized bond premiums and
$564,153 of unamortized deferred loss on defeasance associated with the
bonds.
20,104,786
$49,772,275
57
The future payments of the revenue bonds for the years ending June 30, are as follows:
Business-Type Activities
Year Ending
June 30 Principal Interest
2012$ 2,285,000 $ 1,848,574
2013 2,090,000
2,043,319
2014 2,175,000 1,959,719
2015 2,265,000 1,872,719
2016 2,355,000 1,782,119
2017 – 2021 11,975,000
7,326,746
2022 – 2026 11,405,000 4,891,103
2027 – 2031 10,415,000 2,328,601
2032 – 2033 4,015,000 288,150
Total $48,980,000 $24,341,051
The future payments as presented above, have not been reduced by $564,153, the unamortized deferred
loss incurred as a result of the advance refundings and the $1,356,431 in unamoritized 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 of Combined Enterprise System Revenue Bonds (Bond Order)
since its adoption on May 3, 1994. Section 704(a) of the Bond Order requires the debt service coverage
ratio to be no less than 125% parity indebtedness and 100% of the long term debt service requirement for
subordinated indebtedness for the fiscal year. The debt service coverage ratio calculation for the year
ended June 30, 2011, is as follows:
Operating revenues $80,044,847
Operating expenses (1) 66,284,334
Operating income 13,760,513
Nonoperating revenues (2) 277,207
Income available for debt service 14,037,720
Parity debt service (3) 5,233,017
Debt service coverage ratio 268%
Income available for debt service 14,037,720
Subordinated debt service (3) 8,086,056
Debt service coverage ratio 174%
(1) Per rate covenants, this does not include the depreciation expense of $5,823,170.
(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.
The City has pledged future water and sewer, electric, airport, and natural gas customer revenues, net of
specified operating expenses, to repay $50.5 million in revenue bonds issued in 2008 and 2011. Proceeds
from the bonds provided financing for various capital projects and refunded prior issues. The bonds are
payable solely from the revenue sources of the enterprise funds noted above and are payable through 2033.
Annual principal and interest payments on the bonds are expected to require less than 6% of net revenues.
The total principal and interest remaining to be paid on the bonds is $73,321,043. Principal and interest
paid for the current year and total customer net revenues were $4,260,085 and $79.4 million, respectively.
58
c.ûØÆÛÎÙ× ê×ÖÇÎØÓÎÕÉ
On June 30, 2011, the City issued $19,620,000 in Combined Enterprise System Revenue Refunding Bonds
with interest rates ranging from 2.0% to 5.0% and retired Series 1998 and Series 2008B Combined
Enterprise System Revenue Bonds. As a result, the refunded bonds are considered to be defeased and the
liabilities have been removed from the financial statements.
The advance refundings resulted in a difference between the reacquisition price and the net carrying
amount of the old debt of $564,153. This difference is reported in the accompanying financial statements
as a deduction from bonds payable and is being charged to operations through the year 2028 using the
effective interest method over the life of the new debt which is the same as the life of the refunded debt.
The bond issuance costs associated with the advance refunding were expensed during the period incurred
because they were not considered to be material. The City completed the advance refundings to reduce its
total debt service payments over the next 17 years by $1,618,744 and to obtain an economic gain
(difference between the present values of the old and new debt service payments) of $1,289,799.
Ø éÈÛÈ× ê×ÆÍÐÆÓÎÕ ðÍÛÎÉ
The City has entered into six State Revolving Loans to finance water and sewer improvements. All State
Revolving Loans are being serviced by revenues from the Water and Sewer Fund:
Loan payable to the State of North Carolina Water
Pollution Control Revolving Loan Fund with a maximum
limit of $7,382,765 payable over 20 years with interest at
3.385%.
$ 1,476,553
Loan payable to the State of North Carolina Water
Pollution Control Revolving Loan Fund with a maximum
limit of $3,735,210 payable over 20 years with interest at
2.89%.560,282
Loan payable to the State of North Carolina Water Bond
Loan Fund with a maximum limit of $1,515,662 payable
over 20 years with interest at 5.85%. 378,915
Loan payable to the State of North Carolina Water Bond
Loan Fund with a maximum limit of $1,484,338 payable
over 20 years with a revised interest rate of 3.43%
effective May 1, 2003 (previous rate was 5.30%). 371,084
Loan payable to the State of North Carolina Water
Pollution Control Revolving Loan Fund with a maximum
limit of $1,159,030 payable over 20 years with interest at
3.035%.347,709
Loan payable to the State of North Carolina Water
Pollution Control Revolving Loan Fund with a maximum
limit of $1,270,105 payable over 20 years with interest at
2.89%.316,134
$ 3,450,676
59
Annual debt service requirements to maturity for the State Revolving Loans are as follows:
Business-Type Activities
Year Ending June 30 Principal Interest
2012 $827,077 $117,508
2013827,07788,861
2014827,07760,441
2015640,31632,050
2016271,1788,933
201757,9511,759
Total $3,450,676 $309,552
e.ù×ÊÈÓÖÓÙÛÈ×É ÍÖ ìÛÊÈÓÙÓÌÛÈÓÍÎ
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 $317,582. $ 31,747,418
Annual debt service requirements for Certificates of Participation are as follows:
Business-Type Activities
Year Ending June 30 Principal Interest
2012
$620,000 $1,579,950
2013635,000
1,561,350
2014655,0001,542,300
2015675,0001,522,650
2016695,0001,500,713
2017 – 2021 3,900,000
7,089,138
2022 – 2026 4,820,0006,174,194
2027 – 2031 6,145,0004,852,550
2032 – 2036 7,990,0002,996,400
2037 – 2039
5,930,000664,125
Total $32,065,000 $29,483,370
The future payments presented above, have not been reduced by $317,582, the unamortized bond discount
incurred as a result of the issuance.
f. C ÔÛÎÕ×É ÓÎ ðÍÎÕÈ×ÊÏ ðÓÛÚÓÐÓÈÓ×É
Current
BalanceBalancePortion of
July 1, 2010IncreasesDecreasesJune 30, 2011Balance
õÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É:
$$$$$
Installment purchase obligations 8,209,458263,6001,736,7186,736,3401,460,007
Compensated absences 1,538,2681,136,9311,011,3041,663,8951,114,810
OPEB liability 1,601,6581,093,108-2,694,766-
$11,349,384$2,493,639$2,748,022 $ 11,095,001$2,574,817
èÍÈÛÐ ÕÍÆ×ÊÎÏ×ÎÈÛÐ ÛÙÈÓÆÓÈÓ×É
60
Current
BalanceBalancePortion of
July 1, 2010IncreasesDecreasesJune 30, 2011Balance
úÇÉÓÎ×ÉÉÈÃÌ× ÛÙÈÓÆÓÈÓ×É
åÛÈ×Ê é×Å×Ê öÇÎØ
Compensated absences $234,191$226,271$227,274 $ 233,188$156,237
OPEB liability 288,663204,539- 493,202-
Installment purchase obligations 298,335-140,086 158,24979,556
Revenue bonds
10,332,0084,756,5745,358,277 9,730,305493,714
Less deferred amount for loss on defeasance (41,509)(105,835)(41,509)(105,835)(8,689)
Plus bond premium 56,026254,2993,935306,39024,721
Total revenue bonds 10,346,5254,905,0385,320,703 9,930,860509,746
State revolving loans 4,277,753-827,077 3,450,676827,077
èÍÈÛÐ åÛÈ×Ê é×Å×Ê öÇÎØ $15,445,467$5,335,848$6,515,140 $ 14,266,175$1,572,616
÷Ð×ÙÈÊÓÙ öÇÎØ
Compensated absences $136,377$131,765$134,372 $ 133,770$89,625
OPEB liability 122,50790,533- 213,040-
Installment purchase obligations 1,342,017-310,392 1,031,625302,898
Revenue bonds
23,758,9252,041,7132,863,840 22,936,798739,072
Less deferred amount for loss on defeasance (89,816)(103,953)(89,816)(103,953)(8,535)
Plus bond premium 235,369109,15616,532327,99325,107
Total revenue bonds 23,904,4782,046,9162,790,556 23,160,838755,644
èÍÈÛÐ ÷Ð×ÙÈÊÓÙ öÇÎØ $25,505,379$2,269,214$3,235,320 $ 24,539,273$1,148,167
îÛÈÇÊÛÐ õÛÉ öÇÎØ
Compensated absences $43,603$41,128$38,308 $ 46,423$31,105
OPEB liability 62,52343,590- 106,113-
Installment purchase obligations 261,763-74,455 187,30867,026
Certificates of participation 32,665,000 - 600,000 32,065,000 620,000
Less unamortized discounts (329,131)-(11,548)(317,583)(11,548)
32,335,869 - 588,452 31,747,417 608,452
Total certificates of participation
Revenue bonds 4,584,064886,9891,092,883 4,378,170164,105
Less deferred amount for loss on defeasance (39,977)(45,940)(39,977)(45,940)(3,772)
Plus bond premium 39,32647,4212,76283,9856,591
Total revenue bonds 4,583,413888,4701,055,668 4,416,215166,924
èÍÈÛÐ îÛÈÇÊÛÐ õÛÉ öÇÎØ $37,287,171$973,188$1,756,883 $ 36,503,476$873,507
ûÓÊÌÍÊÈ öÇÎØ
Compensated absences $15,357$14,838$15,504 $ 14,691$9,843
OPEB liability 52,90436,884- 89,788-
Installment purchase obligations 227,12649,50076,796 199,83048,120
61
Current
BalanceBalancePortion of
July 1, 2010IncreasesDecreasesJune 30, 2011Balance
Revenue bonds
12,645,00011,934,72412,645,000 11,934,724888,109
Less deferred amount for loss on defeasance (171,303)(308,425)(171,303)(308,425)(25,322)
Plus bond premium -638,063-638,06352,385
Total revenue bonds 12,473,69712,264,36212,473,697 12,264,362915,172
èÍÈÛÐ ûÓÊÌÍÊÈ öÇÎØ $12,769,084$12,365,584$12,565,997 $ 12,568,671$973,135
ûËÇÛÈÓÙÉ öÓÈÎ×ÉÉ öÇÎØ
Compensated absences $37,807$36,528$30,857 $ 43,478$29,130
OPEB liability 98,55077,121- 175,671-
Installment purchase obligations 1,337,767-424,370 913,397387,345
$1,474,124$113,649$455,227 $ 1,132,546$416,475
èÍÈÛÐ ûËÇÛÈÓÙÉ öÓÈÎ×ÉÉ öÇÎØ
éÈÍÊÏÅÛÈ×Ê öÇÎØ
Compensated absences $35,275$34,082$31,059 $ 38,298$25,660
OPEB liability 43,19533,531- 76,726-
Installment purchase obligations 158,933458,00038,069 578,864126,616
$237,403$525,613$69,128 $ 693,888$152,276
èÍÈÛÐ éÈÍÊÏÅÛÈ×Ê öÇÎØ
éÍÐÓØ åÛÉÈ× öÇÎØ
Compensated absences $-$397$- $ 397$131
OPEB liability -3,353- 3,353-
$-$3,750$- $ 3,750$131
èÍÈÛÐ éÍÐÓØ åÛÉÈ× öÇÎØ
èÍÈÛÐ ÚÇÉÓÎ×ÉÉÈÃÌ× ÛÙÈÓÆÓÈÓ×É $92,718,628$21,586,846$24,597,695 $ 89,707,779$5,136,307
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.óÎÈ×ÊÖÇÎØ úÛÐÛÎÙ×É ÛÎØ ûÙÈÓÆÓÈÃ
Balances due to/from other funds at June 30, 2011, consist of the following:
Due to the Electric Fund for the purchase of land to be used for incentive grants for
industries:
General Fund $ 1,171,306
Due to the Electric Fund to be used for capital improvements:
Natural Gas Fund $ 4,960,920
Due to the Electric Fund for establishment of:
Stormwater Fund $ 111,304
62
Balances due to/from component units at June 30, 2011, consist of the following:
Due to the Primary Government for profit distributions from:
Monroe ABC Board $ 32,500
Due to the Primary Government for Occupancy Tax:
Monroe Tourism Development Authority 19,159
$ 51,659
Transfers to/from other funds at June 30, 2011, consist of the following:
From the General Fund to the Airport Fund for current
operating needs and construction projects $2,788,142
From the General Fund to the Downtown Monroe Special
Revenue Fund for general operations and a one time
transfer to fund an economic incentive agreement. 1,305,697
From the Occupancy Tax Special Revenue Fund to the
General Fund for administrative fees 9,270
From City Grant Programs Fund to the General Fund for
expired incentive grants 211,008
From the Water and Sewer Fund to the Electric Capital
Project Fund for proportionate share of new customer
service building 469,933
From the Natural Gas Fund to the Electric Capital Project
Fund for proportionate share of new Customer Service
Building and Energy Services Building 2,183,184
From the General Fund to the Electric Fund for the
Helping Hands program 10,000
From the General Fund to the Natural Gas Fund for
billing adjustment due to vandalism 208
From the General Fund to the Health & Dental Self
Insurance Fund to establish reserve for health claims
expenses570,420
From the General Fund to the Airport Capital Project
Fund for airport improvements 46,830
From the Downtown Monroe Fund to the Health &
Dental Self Insurance Fund to establish reserve for health
claims expenses 3,532
From the Water and Sewer Fund to the Health & Dental
Self Insurance Fund to establish reserve for health claims
expenses104,194
From the Electric Fund to the Health & Dental Self
Insurance Fund to establish reserve for health claims
expenses47,682
From the Natural Gas Fund to the Health & Dental Self
Insurance Fund to establish reserve for health claims
expenses22,958
From the Airport Fund to the Health & Dental Self
Insurance Fund to establish reserve for health claims
expenses14,128
63
From the Aquatics & Fitness Center Fund to the Health &
Dental Self Insurance Fund to establish reserve for health
claims expenses 19,426
From the Storm Water Fund to the Health & Dental Self
Insurance Fund to establish reserve for health claims
expenses17,660
From the Workers Compensation Self Insurance Fund to
the Health & Dental Self Insurance Fund to establish
reserve for health claims expenses 500,000
$
8,324,272
D.ê×Æ×ÎÇ×É ÷ÄÌ×ÎØÓÈÇÊ×É ÛÎØ ÷ÄÌ×ÎÉ×É
On-Behalf Payments for Fringe Benefits and Salaries
For the fiscal year ended June 30, 2011, the City of Monroe has recognized on-behalf payments for
pension contributions made by the state as a revenue and an expenditure of $16,383 for the 49 employed
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, a cost-sharing, 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 as a revenue and an expenditure on-behalf of payments for fringe benefits
and salaries of $25,846 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, 2011. Under State law
the local board of trustees for the Fund receives an amount each year, which the board may use at its own
discretion for eligible firemen or their departments.
IV.òíóîèðã õíæ÷êî÷ø íêõûîóâûèóíîé
The City, in conjunction with eighteen other local governments, is a member of the North Carolina
Municipal Power Agency Number 1 (Agency). The Agency was formed to enable municipalities that own
electric distribution systems to finance, construct, own, operate, and maintain generation and transmission
facilities. Each participating government appoints one commissioner to the Agency’s governing board.
The nineteen members, which receive power from the Agency, have signed power sales agreements to
purchase a specified share of the power generated by the Agency. Except for the power sales purchase
requirements, no local government participant has any obligation, entitlement, or residual interest. The
City’s purchases of power for the fiscal year ended June 30, 2011 were $40,007,938.
Also, the City, in conjunction with nine Central North Carolina counties and sixty-five other municipalities
established the Centralina Council of Governments (Council). The participating governments established
the Council to coordinate various funding received from federal and State agencies. Each participating
government appoints one member to the Council's governing board. The City paid membership fees of
$7,707 to the Council during the fiscal year ended June 30, 2011.
V. òíóîè æ÷îèçê÷
The City and the members of the City's fire department each appoint two members to the five-member
local board of trustees for the Firemen's Relief Fund. The State Insurance Commissioner appoints one
additional member to the local board of trustees. The Firemen's Relief Fund is funded by a portion of the
fire and lightning insurance premiums that insurers remit to the State. The State passes these monies to the
local board of the Firemen's Relief Fund. The funds are used to assist fire fighters in various ways. The
City obtains an ongoing financial benefit from the Fund for the on-behalf of payments for salaries and
fringe benefits made to members of the City's fire department by the board of trustees. During the fiscal
64
year ended June 30, 2011, the City reported revenues and expenditures for the payments of $25,846 made
through the Firemen's Relief Fund. The participating governments do not have any equity interest in the
joint venture, so no equity has been reflected in the financial statements at June 30, 2011. The Firemen's
Relief Fund does not issue separate audited financial statements. Instead, the local board of trustees files
an annual financial report with the State Firemen's Association. This report can be obtained from the
Association at Post Office Box 188, Farmville, North Carolina 27828.
The City has entered into a joint venture agreement with Public Service Company of North Carolina,
Incorporated, a South Carolina corporation d/b/a PSNC Energy (“PSNC”). The City has agreed to design,
construct and install natural gas pipeline, a control station, an emergency connector, various valves and
electronic data control equipment in Iredell and Cabarrus Counties which is located in PSNC’s service
area. These facilities will be “joint facilities” to be owned by the City subject to PSNC’s 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 a period of six (6) years commencing June 30, 2010. The City will
be responsible for providing all operation, maintenance, inspection and repair of the joint facilities. PSNC
has agreed to reimburse the City for its share of the costs of operation and maintenance in proportion to the
percentage of PSNC’s capacity in the joint facilities, which initially will be 25%. PSNC files SCANA’s
annual SEC Form 10-K with the North Carolina Utilities Commission. A full copy of this report can be
obtained from the Commission’s website in Docket No. G-5, Sub 400A or on SCANA’s website at:
http://www.scana.com/en/investor-relations/financial-reports/. In addition, PSNC’s financial statements
can be found on PSNC’s website at: http://www.psncenergy.com/en/financial-statements/.
VI.ê÷ðûè÷ø íêõûîóâûèóíî
The seven-member board of the Monroe Housing Authority is appointed 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 of Monroe is
also disclosed as a related organization in the notes to the financial statements for the Monroe Housing
Authority. Complete financial statements for the Housing Authority can be obtained from the Authority’s
offices at Post Office Box 805, Monroe, North Carolina 28111.
VII. ê÷ðûè÷ø ìûêèã èêûîéûùèóíîé
The City and its discretely presented component units engaged in the following transactions during the
year ended June 30, 2011:
City of Monroe ABC Board:
Payments to the City for profit distributions $ 185,000
Payments to the City for law enforcement 67,145
Total $ 252,145
Monroe Tourism Development Authority:
Payment of a pro-rata portion of the occupancy tax
by the City to the Authority $299,714
Payment by the Authority to the City for
the Occupancy Tax Project $199,809
VIII.öçîø úûðûîù÷
The following schedule provides management and citizens with information on the portion of General fund
balance that is available for appropriation:
65
Total fund balance – General Fund $ 20,478,381
Less:
Inventories 302,008
Prepaids 29,164
Stabilization by State Statute 3,460,359
Streets-Powell Bill 670,113
Appropriated Fund Balance in 2012 budget 2,975,126
Working Capital / Fund Balance Policy 7,701,463
Remaining Fund Balance $ 5,340,148
The outstanding encumbrances are amounts needed to pay any commitments related to purchase orders and
contracts that remain unperformed at year-end. Encumbrances as of June 30, 2011 were:
Governmental activities:
General Fund $ 540,681
Non-Major Funds 5,125
Total governmental activities $ 545,806
Business-type activities:
Water and Sewer Fund $ 222,169
Electric Fund 664,479
Natural Gas Fund 156,071
Airport Fund 13,200
Non-Major Funds 585,776
Total business-type activities $ 1,641,695
IX.éçïïûêã øóéùðíéçê÷ íö éóõîóöóùûîè ùíîèóîõ÷îùó÷é
ö×Ø×ÊÛÐ ÛÎØ éÈÛÈ× ûÉÉÓÉÈ×Ø ìÊÍÕÊÛÏÉ
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.
X. éè÷åûêøéôóì ùíïìðóûîù÷ ûîø ûùùíçîèûúóðóèã
Expenditures in the Airport Fund for operations exceeded budget appropriations by $166,844. Higher fuel
sales resulted in higher than budgeted fuel purchase expenditures. Management and board will more
closely review the budget reports to ensure compliance in future years.
XI.éçúé÷ëç÷îè ÷æ÷îèé
Management has evaluated subsequent events through November 1, 2011, the date the financial statements
were available to be issued.
66
CITY OF MONROE, NORTH CAROLINA
LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANC
E
REQUIRED SUPPLEMENTARY INFORMATIO
N
SCHEDULE OF FUNDING PROGRES
S
ûÙÈÇÛÊÓÛÐ ûÙÙÊÇ×Øçûûð
ûÙÈÇÛÊÓÛÐðÓÛÚÓÐÓÈà ûûð çÎÖÇÎØ×ØÛÉ Û
ûÙÈÇÛÊÓÛÐæÛÐÇ× ÍÖìÊÍÒ×ÙÈ×ØûûðöÇÎØ×ØùÍÆ×Ê×Øì×ÊÙ×ÎÈÛÕ× ÍÖ
æÛÐÇÛÈÓÍÎûÉÉ×ÈÉçÎÓÈ ùÊ×ØÓÈçûûðêÛÈÓÍìÛÃÊÍÐÐùÍÆ×Ê×Ø ìÛÃÊÍÐÐ
øÛÈ×ÛÚÚÛÛ
ÚÙÚÛ
Ù
12/31/01$ 1,164,941$ 1,164,94141.32%
- 0.00%$ 2 ,819,591
12/31/02 1,210,250 1,210,250 43.58
- 0.00 2 ,777,185
12/31/03 1,295,336 1,295,336 44.50
- 0.00 2 ,910,965
12/31/041,406,3951,406,395 0.002,865,536 49.08
-
12/31/051,400,5931,400,593 0.003,368,588 41.58
-
12/31/061,442,0951,442,095 0.003,623,857 39.79
-
12/31/071,650,6701,650,670 0.003,761,162 43.89
-
12/31/081,703,4011,703,401 0.003,933,354 43.31
-
12/31/092,184,6312,184,631 0.004,461,289 48.97
-
12/31/101,852,8601,852,860 0.004,406,310 42.05
-
67
CITY OF MONROE, NORTH CAROLINA
LAW ENFORCEMENT OFFICERS' SPECIAL SEPARATION ALLOWANC
E
REQUIRED SUPPLEMENTARY INFORMATIO
N
SCHEDULE OF EMPLOYER CONTRIBUTION
S
ã×ÛÊ ÷ÎØ×ØûÎÎÇÛÐ ê×ËÇÓÊ×Øì×ÊÙ×ÎÈÛÕ×
òÇÎ×
ùÍÎÈÊÓÚÇÈÓÍÎùÍÎÈÊÓÚÇÈ×Ø
2001$ 112,650 94.37%
2002 113,793 95.10
2003 111,195 99.37
2004 116,909 106.01
2005 121,658 113.76
2006137,815 119.31
2007138,373 149.68
2008143,756 122.24
2009164,695 127.34
2010174,367 131.97
2011225,936 174.70
îÍÈ×É ÈÍ ÈÔ× ê×ËÇÓÊ×Ø éÙÔ×ØÇÐ×É
Theinformationpresentedintherequiredsupplementaryscheduleswas
determinedaspartoftheactuarialvaluationsatthedatesindicated.Additional
information as of the latest actuarial valuation follows:
Valuation dateDecember 31, 2010
Actuarial cost methodProjected unit credit
Amortization methodLevel percentage of pay closed
Remaining amortization period20 Years
Asset valuation methodMarket value
Actuarial assumptions:
Investment rate of return*5.00%
Projected salary increases*4.5% to 7.85%
Cost-of-living adjustmentsnone
*Includes inflation at 3.75%
68
CITY OF MONROE, NORTH CAROLINA
THE HEALTH CARE PLAN OF THE CITY OF MONROE
SUPPLEMENTAL INFORMATION SCHEDULE OF FUNDING PROGRESS
ûÙÈÇÛÊÓÛÐ ûÙÙÊÇ×Øçûûð
ûÙÈÇÛÊÓÛÐðÓÛÚÓÐÓÈà ûûð çÎÖÇÎØ×ØÛÉ Û
ûÙÈÇÛÊÓÛÐæÛÐÇ× ÍÖìÊÍÒ×ÙÈ×ØûûðöÇÎØ×ØùÍÆ×Ê×Øì×ÊÙ×ÎÈÛÕ× ÍÖ
æÛÐÇÛÈÓÍÎûÉÉ×ÈÉçÎÓÈ ùÊ×ØÓÈçûûðêÛÈÓÍìÛÃÊÍÐÐùÍÆ×Ê×Ø ìÛÃÊÍÐÐ
øÛÈ×ÛÚÚÛÛ
ÚÙÚÛ
Ù
July 1, 2007$ 15,877,000-$ $ 15,877,0000.00%18,700,000$ 84.9%
July 1, 2009 19,201,000- 19,201,000 0.0019,927,000 93.4
December 31, 2010 20,670,010- 20,670,010 0.0021,957,134 94.1
69
CITY OF MONROE, NORTH CAROLINA
THE HEALTH CARE PLAN OF THE CITY OF MONROE
SUPPLEMENTAL INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTION
FISCAL YEAR ENDED JUNE 30, 2011
ã×ÛÊ ÷ÎØ×ØûÎÎÇÛÐ ê×ËÇÓÊ×Øì×ÊÙ×ÎÈÛÕ×
òÇÎ×
ùÍÎÈÊÓÚÇÈÓÍÎùÍÎÈÊÓÚÇÈ×Ø
2009$ 1,502,00023.2%
2010 1,513,000 26.2
2011 1,837,058 13.8
îÍÈ×É ÈÍ ÈÔ× ê×ËÇÓÊ×Ø éÙÔ×ØÇÐ×É
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 dateDecember 31, 2010
Actuarial cost methodProjected unit credit
Amortization methodLevel percentage of pay open
Remaining amortization period30 Years
Asset valuation methodMarket value
Actuarial assumptions:
Investment rate of return*4.00%
Medical cost trend rate
Pre-Medicare trend rate10.50%-5.00%
Post-Medicare trend rate8.50%-5.00%
Year of ultimate trend rate2018
*Includes inflation at3.00%
Cost-of-living adjustmentsnone
70
îÍÎÏÛÒÍÊ õÍÆ×ÊÎÏ×ÎÈÛÐ öÇÎØÉ
éÌ×ÙÓÛÐ ê×Æ×ÎÇ× öÇÎØÉ
éÌ×ÙÓÛÐ ê×Æ×ÎÇ× öÇÎØÉ
are used to account for specific revenues that are
legally restricted to expenditures for specified purposes.
ùÍÏÏÇÎÓÈà ø×Æ×ÐÍÌÏ×ÎÈ - 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.
øÍÅÎÈÍÅÎ ïÍÎÊÍ× - This fund is used to account for specific revenues
that are restricted for the purpose of downtown revitalization.
íÙÙÇÌÛÎÙÃ èÛÄ - This fund is used to account for specific revenues that
are restricted for the purpose of tourism development.
ùÓÈà õÊÛÎÈ ìÊÍÕÊÛÏÉ - 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.
éÈÛÈ× õÊÛÎÈ ìÊÍÕÊÛÏÉ - This fund is used to account for specific state
grant revenues that are restricted for housing development in designated
areas of the City.
ùÛÌÓÈÛÐ ìÊÍÒ×ÙÈÉ öÇÎØÉ
ùÛÌÓÈÛÐ ìÊÍÒ×ÙÈÉ öÇÎØÉ
account for financial resources to be used for the
acquisition or construction of major capital facilities other than those
financed by proprietary funds.
ùÛÌÓÈÛÐ ìÊÍÒ×ÙÈÉ - This fund is used to account for the purchase,
renovation, furnishing, or construction of roadway and facility
improvements.
íÙÙÇÌÛÎÙà èÛÄ ìÊÍÒ×ÙÈÉ - This fund is used to account for tourism related
capital expenditures.
CITY OF MONROE, NORTH CAROLINA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2011
éÌ×ÙÓÛÐ ê×Æ×ÎÇ×
ùÍÏÏÇÎÓÈøÍÅÎÈÍÅÎ íÙÙÇÌÛÎÙÃùÓÈà õÊÛÎÈéÈÛÈ× õÊÛÎÈ
Ã
ø×Æ×ÐÍÌÏ×ÎÈïÍÎÊÍ×èÛÄìÊÍÕÊÛÏÉìÊÍÕÊÛÏÉ
ûéé÷èé
Cash and cash equivalents53,489
$ $ 13,213$ -$ -$ -
Taxes receivable-
2,743 29,627 - -
Accounts receivable 1,106
126 - - -
Due from other governments -
- - - 40,993
Due from component unit -
- - - -
Loans receivable16,773 - - - -
Total assets71,368$ 16,082$ 29,627$ -$ 40,993$
ðóûúóðóèó÷é ûîø öçîø úûðûîù÷é
Liabilities:
Accounts payable and
accrued liabilities19
$ $ 8,213$ -$ -$ 40,993
Deferred revenue16,773 2,744 29,627 - -
Total liabilities16,792 10,957 29,627 - 40,993
Fund balances:
Restricted:
Stabilization by State Statute1,106
5 ,259 - - -
(134) - - -
Assigned53,470
5,125 - - -
Total fund balances54,576
16,082$ 29,627$ -$ 40,993$
Total liabilities and fund balances71,368$
72
STATEMENT 1
ùÛÌÓÈÛÐ
ìÊÍÒ×ÙÈ öÇÎØÉ
öÇÎØÉíÙÙÇÌÛÎÙà èÍÈÛÐ îÍÎÏÛÒÍÊ
ùÛÌÓÈÛÐèÛÄ õÍÆ×ÊÎÏ×ÎÈÛÐ
èÍÈÛÐìÊÍÒ×ÙÈÉìÊÍÒ×ÙÈÉèÍÈÛÐöÇÎØÉ
$ 30,16866,702$ 1,166,392$ 1,196,560$ 1,263,262$
-32,370 - - 32,370
-1,232 - - 1,232
7,20040,993 - 7,200 48,193
-- 19,159 19,159 19,159
-16,773 - - 16,773
$ 37,368158,070$ 1,185,551$ 1,222,919$ 1,380,989$
$ 1,49349,225$ -$ 1,493$ 50,718$
-49,144 - - 49,144
1,49398,369 - 1,493 99,862
-6,365 - - 6,365
35,875 1,185,551 1,221,426 1,274,762
53,336
35,875 1,185,551 1,221,426 1,281,127
59,701
37,368$ 1,185,551$ 1,222,919$ 1,380,989$
$158,070
73
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCE
S
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30, 2011
éÌ×ÙÓÛÐ ê×Æ×ÎÇ×
ùÍÏÏÇÎÓÈøÍÅÎÈÍÅÎíÙÙÇÌÛÎÙÃùÓÈà õÊÛÎÈéÈÛÈ× õÊÛÎÈ
Ã
ø×Æ×ÐÍÌÏ×ÎÈïÍÎÊÍ×èÛÄìÊÍÕÊÛÏÉìÊÍÕÊÛÏÉ
ê÷æ÷îç÷é
Ad valorem taxes-$ -
$ $ 5 0,285$ - $ -
Other taxes and licenses - -
- 308,984 -
Restricted intergovernmental - 95,221
- - 4 0,000
Miscellaneous - -
3 70 - -
Program income 2,400 -
- - -
2,968 - - -
Investment earnings-
53,623 308,984 40,000 95,221
Total revenues2,400
÷äì÷îøóèçê÷é
Current:
Economic and physical development:
Administration77 -
1,539,789 - -
Loan assistance - -
- - 18,600
Incentive grants - -
- -80,424
Program costs -
- - -95,221
Tourism - -
- 299,714 -
Capital outlay- - - - -
Total expenditures77 1,539,789 299,714 99,024 95,221
Revenues over (under) expenditures2,323 (1,486,166) 9,270 (59,024) -
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from other funds - -
1 ,305,697 - -
Transfers to other funds- (3,532) (9,270) (211,008) -
Total other financing sources (uses)- 1,302,165 (9,270) (211,008) -
Net change in fund balances2,323 (184,001) -
- (270,032)
Fund balances, beginning52,253 - 270,032 -
Fund balances, ending54,576$ 5,125$ -$ -$ -$
74
STATEMENT 2
ùÛÌÓÈÛÐ
ìÊÍÒ×ÙÈ öÇÎØÉ
öÇÎØÉíÙÙÇÌÛÎÙà èÍÈÛÐ îÍÎÏÛÒÍÊ
ùÛÌÓÈÛÐèÛÄ õÍÆ×ÊÎÏ×ÎÈÛÐ
èÍÈÛÐìÊÍÒ×ÙÈÉìÊÍÒ×ÙÈÉèÍÈÛÐöÇÎØÉ
$ -$ -$ 50,285-$
$ 5 0,285
- - 308,984-
3 08,984
304,027199,809503,836 639,057
1 35,221
153 153- 523
3 70
2,400 - - - 2,400
- - - 2,968
2,968
304,180 199,809 503,989 1,004,217
500,228
11,10211,102- 1,550,968
1 ,539,866
- - 18,600-
1 8,600
- - 80,424-
8 0,424
- - 95,221-
9 5,221
- - 299,714-
2 99,714
337,578 150,000 487,578 487,578
-
2,033,825 337,578 161,102 498,680 2,532,505
(33,398)(1,533,597) 38,707 5,309 (1,528,288)
-1,305,697 - - 1,305,697
(223,810) - - - (223,810)
1,081,887 - - - 1,081,887
(33,398)(451,710) 38,707 5,309 (446,401)
511,411 69,273 1,146,844 1,216,117 1,727,528
$59,701 35,875$ 1,185,551$ 1,221,426$ 1,281,127$
75
STATEMENT 3
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF NET ASSET
S
INTERNAL SERVICE FUND
S
une 30, 2011
J
ô×ÛÐÈÔ ÛÎØåÍÊÑ×ÊÉìÊÍÌ×ÊÈà ÛÎØ
ø×ÎÈÛÐùÍÏÌ×ÎÉÛÈÓÍÎðÓÛÚÓÐÓÈÃ
öÇÎØöÇÎØèÍÈÛÐ
öÇÎØ
ûéé÷èé
Current assets:
$1,016,662$ 488,2161,088,034$ 2,592,912$
Cash and investment
s
Accounts receivable (net)109,226 - 62 109,288
9,999-20,068
Deposits10,069
Total current assets 1,098,0331,135,957 488,278 2,722,268
ðóûúóðóèó÷é
Current Liabilities:
- 5,974 165,775
Accounts payable and accrued liabilities159,801
Total current liabilities159,801 - 5,974 165,775
î÷è ûéé÷èé
Unrestricted976,156$ 1,098,033$ 482,304$ 2,556,493$
76
STATEMENT 4
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSET
S
INTERNAL SERVICE FUND
S
FOR THE FISCAL YEAR ENDED June 30, 2011
ô×ÛÐÈÔ ÛÎØåÍÊÑ×ÊÉìÊÍÌ×ÊÈà ÛÎØ
ø×ÎÈÛÐùÍÏÌ×ÎÉÛÈÓÍÎðÓÛÚÓÐÓÈÃ
öÇÎØöÇÎØèÍÈÛÐ
öÇÎØ
íì÷êûèóîõ ê÷æ÷îç÷é
Interfund charges and employee contributions4,629,055$ -$ 645,000$ 5,274,055$
Other operating revenue192,879 1,164 3,521 197,564
1,164 648,521 5,471,619
Total operating revenues4,821,934
íì÷êûèóîõ ÷äì÷îé÷é
Operating expenses- 123,748- 123,748
Health care clinic66,880- - 66,880
5,161,938- 5,161,938-
Health benefit claims and premium
s
Property and liability claims and premiums- - 547,421 547,421
123,748 547,421 5,899,987
Total operating expenses5,228,818
Operating income(406,884) (122,584) 101,100 (428,368)
îíî íì÷êûèóîõ ê÷æ÷îç÷é
Transfers from (to) other funds
-570,420 - 570,420
General Fun
d
Aquatic Center Fun19,426- 19,426-
d
3,532--3,532
Downtown Monroe Fun
d
Water and Sewer Fun -104,194 - 104,194
d
-17,660 - 17,660
Stormwater Fun
d
Electric Fund47,682 - - 47,682
atural Gas Fun -22,958 - 22,958
Nd
Airport Fund14,128 - - 14,128
-500,000 - 500,000
Workers' Compensation Fun
d
Health and Dental Fun (500,000)- - (500,000)
d
2,264 336 3,069
Investment earnings469
(497,736) 336 803,069
Total non operating revenues1,300,469
Change in net assets893,585 (620,320) 101,436 374,701
î÷è ûéé÷èé
1,718,353 380,868 2,181,792
Beginning82,571
1,098,033$ 482,304$ 2,556,493$
Ending976,156$
77
STATEMENT 5
CITY OF MONROE, NORTH CAROLINA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUND
S
FOR THE FISCAL YEAR ENDED June 30, 2011
ô×ÛÐÈÔ ÛÎØåÍÊÑ×ÊÉìÊÍÌ×ÊÈà ÛÎØ
ø×ÎÈÛÐùÍÏÌ×ÎÉÛÈÓÍÎðÓÛÚÓÐÓÈÃ
öÇÎØöÇÎØöÇÎØèÍÈÛÐ
íì÷êûèóîõ ûùèóæóèó÷é
Cash received for services4,629,055$ -$ 645,226$ 5,274,281$
Other operating revenue281,595 1,164 3,521 286,280
Cash paid for goods and services(5,489,002) (146,731) (547,898) (6,183,631)
et cash provided (used) by operating
N
activities(578,352) (145,567) 100,849 (623,070)
ùûéô öðíåé öêíï îíîùûìóèûð öóîûîùóîõ
ûùèóæóèó÷é
Transfers (to) from other funds1,300,000 (500,000) - 800,000
Net cash provided (used) by noncapital financing
(500,000) - 800,000
activities1,300,000
óîæ÷éèóîõ ûùèóæóèó÷
é
Investment earnings469 2,264 336 3,069
Net cash provided (used) by investing
2,264 336 3,069
activities469
et increase (decrease) in cash and
N
(643,303)722,117 101,185 179,999
investment
s
ùûéô ûîø óîæ÷éèï÷îèé
Beginning of year294,545 1,731,337 387,031 2,412,913
End of year1,016,662$ 1,088,034$ 488,216$ 2,592,912$
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÍÖ ÍÌ×ÊÛÈÓÎÕ ÓÎÙÍÏ× ÐÍÉÉ ÈÍ Î×È
ÙÛÉÔ ÌÊÍÆÓØ×Ø ÇÉ×Ø Úà ÍÌ×ÊÛÈÓÎÕ ÛÙÈÓÆÓÈÓ×É
Operating income (loss)(406,884)$ (122,584)$ 101,100$ (428,368)$
Adjustments to reconcile operating income(loss)
to net cash provided (used) by operating activities:
Change in assets and liabilities
(Increase) decrease in accounts receivable8,286 (9,502) 226 (990)
(Increase) decrease in prepaid expenses80,430 - - 80,430
Increase (decrease) in accounts payable and
accrued liabilities(260,184) (13,481) (477) (274,142)
Total adjustments(171,468)(22,983)(251) (194,702)
et cash provided (used) by operating
N
activities(578,352)$ (145,567)$ 100,849$ (623,070)$
78
SCHEDULE 6
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Ad valorem taxes:
Taxes$ 18,348,766$ 19,062,719$ 713,953
Penalties and interest68,945103,615 34,670
Total18,417,71119,166,334 748,623
Other taxes and licenses:
Privilege licenses784,362720,949 (63,413)
Gross receipts tax on short-term rental property38,00048,556 10,556
Local franchise fees40,00040,317 317
Motor vehicle tax112,178129,907 17,729
Total974,540939,729 (34,811)
Unrestricted intergovernmental:
Local option sales taxes3,372,9663,905,931 532,965
Telecommunications sales tax510,524489,371 (21,153)
Utility franchise tax1,320,0121,543,148 223,136
Cablevision franchise fees277,500290,873 13,373
Beer and wine tax47,000168,010 121,010
State fire fees2,8893,853 964
185,000 (25,000)
ABC profit distribution210,000
ABCfitditibti210000185000(25000)
Total5,740,8916,586,186 845,295
Restricted intergovernmental:
Powell Bill allocation 979,430 1,000,949 21,519
Public safety reimbursement grants 574,076 441,086 (132,990)
On-behalf payments - Fire and Rescue 46,229- 46,229
ABC Revenue for law enforcement 74,000 67,145 (6,855)
Resource officer reimbursement 95,000 99,946 4,946
Senior Center grant 4,082 4,081 (1)
Equitable sharing of federally forfeited property 78,005- 78,005
Transportation reimbursement grant30,000 22,560 (7,440)
Total1,756,5881,760,001 3,413
Sales and services:
Recreational fees878,850699,631 (179,219)
Utilities collection fees413,424410,898 (2,526)
Building permit fees187,150312,750 125,600
Cemetery revenues40,82230,662 (10,160)
Sale of fixed assets128,00032,936 (95,064)
Rentals60,88578,468 17,583
Other fees127,142142,911 15,769
Total1,836,2731,708,256 (128,017)
- Continued -
79
SCHEDULE 6,
Continued
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
ûÙÈÇÛÐî×ÕÛÈÓÆ×
úÇØÕ×È
Investment earnings$400,000 61,318$ (338,682)$
Miscellaneous:
Payment in lieu of taxes442,692 489,671 46,979
Donations 30,925 33,144 2,219
Insurance reimbursement 29,966- 29,966
Other68,307 193,819 125,512
Total541,924 746,600 204,676
30,968,424 1,300,497
Total revenues29,667,927
÷äì÷îøóèçê÷é
Current:
General government:
Administration
Salaries and employee benefits1,808,3631,791,357 17,006
Operating expenditures2,094,2351,375,073 719,162
Capital outlay116,00097,865ill 18,135
(1,399,846) 1
Interdepartmental charges(1,399,845)
1,864,449 754,304
2,618,753
Planning and zoning
Salaries and employee benefits536,100519,947 16,153
Operating expenditures 75,195 46,588 28,607
Interdepartmental charges (37,411)(37,411) -
529,124 44,760
573,884
Engineering
Salaries and employee benefits829,451816,058 13,393
Operating expenditures103,93583,067 20,868
Interdepartmental charges(347,669) (347,669) -
551,456 34,261
585,717
Finance
Salaries and employee benefits1,674,9681,640,255 34,713
Operating expenditures317,028269,342 47,686
(1,828,117) -
Interdepartmental charges(1,828,117)
81,480 82,399
163,879
- Continued -
80
SCHEDULE 6,
Continued
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
Operations Center
Salaries and employee benefits$ 513,572$ 480,191$ 33,381
Operating expenditures213,597169,830 43,767
Interdepartmental charges (598,058)(576,481) 21,577
150,688 51,963 98,725
Special appropriations
201,530 65,776
Operating expenditures267,306
Total4,360,227 3,280,002 1,080,225
Transportation:
Streets and highways
Salaries and employee benefits964,325898,269 66,056
Operating expenditures1,619,0291,217,806 401,223
Capital outlay629,987488,870 141,117
Interdepartmental charges(505,400) (631,611) 126,211
Total2,707,941 1,973,334 734,607
Public safety:
Police
Salaries and employee benefits6,892,6226,830,604 62,018
Operating expenditures1,739,3231,356,425 382,898
41,640 (25,852)
Capital outlay15,788
8,228,669 419,064
8,647,733
Fire
Salaries and employee benefits5,434,5545,300,632 133,922
Operating expenditures497,298465,247 32,051
Capital outlay8,500 5,023 3,477
5,770,902 169,450
5,940,352
Building standards and code enforcement
Salaries and employee benefits340,423331,860 8,563
Operating expenditures80,420 46,941 33,479
Total420,843 378,801 42,042
14,378,372 630,556
Total15,008,928
- Continued -
81
SCHEDULE 6,
Continued
CITY OF MONROE, NORTH CAROLINA
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AN
D
CHANGES IN FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
ûÙÈÇÛÐî×ÕÛÈÓÆ×
úÇØÕ×È
Culture and recreation:
Salaries and employee benefits $ 2,602,814$ 2,522,101$ 80,713
Operating expenditures1,971,4561,750,417 221,039
Capital outlay200,684198,016 2,668
Interdepartmental charges (378,232)(378,232) -
Total4,396,722 4,092,302 304,420
Debt service:
Principal retirement1,624,6941,961,757 (337,063)
Interest and other charges400,00060,964 339,036
Total2,024,694 2,022,721 1,973
Total expenditures28,498,512 25,746,731 2,751,781
Revenues over (under) expenditures1,169,415 5,221,693 4,052,278
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from (to) other funds:
Special Revenue Funds
Occupancy Tax Fun9,0009,270 270
OTFd90009270270
d
City Grant Programs 211,008 211,008 -
Capital Projects Funds
Downtown Monroe (1,531,143) (1,305,697) 225,446
Airport (46,830) (46,830) -
Internal Service Funds Funds
Self Insured Health And Dental Fund (570,420) (570,420) -
Electric Fund (10,000) (10,000) -
Natural Gas Fund (208) (208) -
Airport Fund (2,922,439) (2,788,142) 134,297
Repayment of advance from other funds (131,478) (131,477) 1
Installment purchase obligations issued285,000 263,600 (21,400)
Total other financing sources (uses)(4,707,510) (4,368,896) 338,614
öçîø úûðûîù÷ ûììêíìêóûè÷ø 3,538,095 - (3,538,095)
Net change in fund balance-$ 852,797 852,797$
Fund balance, beginning19,625,584
Fund balance, ending$20,478,381
82
SCHEDULE 7,
Page 1 of 5
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUND
S
COMMUNITY DEVELOPMENT
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Program income5,000$ 2,400$ (2,600)$
÷äì÷îøóèçê÷é
Current:
Economic and physical development:
Administration500 77 423
Revenues over (under) expenditures4,500 (3,023)
2,323
- 4,500
ûììêíìêóûèóíî èí öçîø úûðûîù÷(4,500)
Net change in fund balance-$ 2,323 $1,477
Fund balance, beginning 52,253
Fund balance, ending
$ 54,576
83
SCHEDULE 7,
Page 2 of 5
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUND
S
DOWNTOWN MONROE
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
ÇÕ×ÈÙÈÇÛ×ÕÛÈÆ×
úØûÐîÓ
ê÷æ÷îç÷é
Ad valorem taxes41,710$ 8,575
$ $ 50,285
Miscellaneous 1,000370(630)
Investment earnings1,000 2,968 1,968
Total 43,710 53,623 9,913
÷äì÷îøóèçê÷é
Current:
Economic and physical development:
Administration1,603,580 63,791
1,539,789
Capital Outlay -- -
Total1,603,580 1,539,789 63,791
(1,486,166) 73,704
Revenues over (under) expenditures(1,559,870)
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from (to) other funds:
General Fund1,531,143 (225,446)
1,305,697
(3,532)(3,532) -
Health and Dental Fun
d
Total other financing sources (uses)1,527,611 1,302,165 (225,446)
öçîø úûðûîù÷ ûììêíìêóûè÷ø 32,259 - (32,259)
(184,001) (184,001)$
Net change in fund balance-$
Fund balance, beginning 189,126
Fund balance, ending
$ 5,125
84
SCHEDULE 7,
Page 3 of 5
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUND
S
OCCUPANCY TA
X
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN
FUND BALANCES -- BUDGET AND ACTUAL
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
ÇÕ×ÈÙÈÇÛ×ÕÛÈÆ×
úØûÐîÓ
ê÷æ÷îç÷é
Other taxes and licenses:
308,984$ 8,984$
Occupancy tax300,000$
÷äì÷îøóèçê÷é
Current:
Economic and physical development:
Tourism291,000 299,714 (8,714)
Revenues over expenditures9,000 9,270 270
íèô÷ê öóîûîùóîõ çé÷é
Transfers to other funds:
(9,270) (270)
General Fund(9,000)
Net change in fund balance-$ - $-
Fund balance, beginning
-
Fund balance, ending
$ -
85
SCHEDULE 7,
Page 4 of 5
CITY OF MONROE, NORTH CAROLINA
SPECIAL REVENUE FUND
S
CITY GRANT PROGRAMS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES I
N
FUND BALANCES -- BUDGET AND ACTUAL
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐÛÊÛÎÙ×
æÓ
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈ èÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ÇÈÍÊÂÛÈÍÎ×ÛÊ×ÛÊÛÈ××ÕÛÈÆ×
ûÔÓÓããøîÓ
ê÷æ÷îç÷é
Restricted intergovernmental688,604$ 438,604$ 40,000$ 478,604$ (210,000)$
÷äì÷îøóèçê÷é
Current:
Economic and physical development:
Loan assistance257,008 139,582 98,826
18,600 158,182
Incentive grants3,280,076 2,989,651 80,424 3,070,075 210,001
Total expenditures3,537,084 3,129,233 99,024 3,228,257 308,827
Revenues over (under) expenditures(2,848,480) (2,690,629) (59,024) (2,749,653) 98,827
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from (to) other funds:
General Fund2,573,480 2,784,488(211,008) -
2,573,480
State Grant Project Fund - 8,000- 8,000
8,000
Community Development Fund275,000 168,173 - 168,173 (106,827)
Total other financing sources (uses)2,848,480 2,960,661 (211,008) 2,749,653 (98,827)
Revenues and other financing sources
over expenditures and other financing use-$$270,032(270,032) -$
$ -
Fund balance, beginning270,032
Fund balance, ending-$
86
SCHEDULE 7,
Page 5 of 5
CITY OF MONROE, NORTH CAROLINA
CAPITAL PROJECT FUNDS
STATE GRANT PROGRAMS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES I
N
FUND BALANCES -- BUDGET AND ACTUAL
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐÛÊÛÎÙ×
æÓ
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈ èÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ÇÈÍÊÂÛÈÍÎ×ÛÊ×ÛÊÛÈ××ÕÛÈÆ×
ûÔÓÓããøîÓ
ê÷æ÷îç÷é
Restricted intergovernmental (09-C-1999)$400,000 -$ 95,221$ 95,221$ (304,779)$
Total Revenues400,000 - 95,221 95,221 (304,779)
÷äì÷îøóèçê÷é
Current:
Economic and physical development:
Program costs (09-C-1999)400,000-95,221 304,779
95,221
Total expenditures400,000 - 95,221 95,221 304,779
-$ - -$
Revenues over expenditures-$
$ -
Fund balance, beginning-
Fund balance, ending-$
87
SCHEDULE 8,
Page 1 of 2
CITY OF MONROE, NORTH CAROLINA
CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGE
S
IN FUND BALANCES -- BUDGET AND ACTUAL
From Inception And For The Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐÛÊÛÎÙ×
æÓ
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈèÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ûÇÈÔÍÊÓÂÛÈÓÍÎã×ÛÊÉã×ÛÊøÛÈ×î×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Restricted intergovernmental638,000$ 183,183$ 304,027$ 487,210$ (150,790)$
Miscellaneous- - 153 153 153
Investment earnings- 1,595 - 1,595 1,595
Total revenues638,000 184,778 304,180 488,958 (149,042)
÷äì÷îøóèçê÷é
Capital outlay:
Construction costs capitalized3,074,233 2,711,513 336,0853,047,598 26,635
Construction in progress10,000 3,599 1,4935,092 4,908
135,646 - 135,646 153,374
Other costs289,020
2,850,758 337,578 3,188,336 184,917
Total expenditures3,373,253
(2,665,980) (33,398) (2,699,378) 35,875
Revenues over (under) expenditures(2,735,253)
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from (to) other funds:
General Fund343,533 343,533 - 343,533 -
Installment purchase obligations issued2,391,7202,391,720 2,391,720- -
Total other financing sources (uses)2,735,253 2,735,253 - 2,735,253 -
Revenues and other financing sources
over (under) expenditures and other
financing uses-$ 69,273$ (33,398) 35,875$ 35,875$
Fund balance, beginning69,273
unaance, enng,
Fdbldi$35875
88
SCHEDULE 8,
Page 2 of 2
CITY OF MONROE, NORTH CAROLINA
CAPITAL PROJECT FUNDS
OCCUPANCY TAX CAPITAL PROJECT
S
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES I
N
FUND BALANCES -- BUDGET AND ACTUAL
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐÛÊÛÎÙ×
æÓ
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈ èÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ûÇÈÔÍÊÓÂÛÈÓÍÎã×ÛÊã×ÛÊøÛÈ×î×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Restricted intergovernmental$1,228,362 1,150,049$ 199,809$ 1,349,858$ 121,496$
Total Revenues1,228,362 1,150,049 199,809 1,349,858 121,496
÷äì÷îøóèçê÷é
Current:
Construction costs capitalized 150,000 150,000150,000- -
Construction in progress 20,000 - - 20,000-
Other costs174,883 118,035 11,102 129,137 45,746
ota expentures,,,,,
Tldi34488311803516110227913765746
evenues uner expentures,,,,,,,
Rddi8834791032014387071070721187242
íèô÷ê öóîûîùóîõ éíçêù÷é
Transfers from other funds:
erormngrtsente,,-,,
PfiACr10181411483011483013016
Revenues and other financing sources
over uner expentures,,,,,,,
(d)di$985293$114684438707$1185551$200258
unaance,egnnng,,
Fdblbii1146844
unaance, enng,,
Fdbldi$1185551
89
SCHEDULE 9
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
Water sales5,247,452$ 5,432,518$ 185,066$
Sewer charges6,451,3906,599,850 148,460
Water and sewer taps132,15544,749 (87,406)
County waste water charges600,000 516,152 (83,848)
12,593,269 162,272
12,430,997
Other operating revenues282,981 323,331 40,350
12,916,600 202,622
Total operating revenues12,713,978
Nonoperating revenues:
Availabilityfees316,510, 281,924,(34,586),
Availabilityfees316510281924(34586)
Other nonoperating revenues971 13,324 12,353
Investment earnings400,045 86,211 (313,834)
Total nonoperating revenues717,526 381,459 (336,067)
13,298,059 (133,445)
Total revenues13,431,504
ûììêíìêóûèóíî èí öçîø úûðûîù÷ -(1,752,737) 1,752,737
Total revenues11,678,767 13,298,059 1,619,292
íèô÷ê öóîûîùóîõ éíçêù÷é
Transfers from other funds:
Water and Sewer Capital Projects Fund1,158,238 1,158,238 -
Refunding revenue bonds issued4,670,131 4,670,131 -
Premium on refunding revenue bonds issued254,299 254,299 -
Total other financing sources6,082,668 6,082,668 -
Total revenues and other financing sources17,761,435$ 19,380,727$ 1,619,292$
- Continued -
90
SCHEDULE 9,
Continued
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
÷äì÷îøóèçê÷é
Distribution system:
Salaries and employee benefits2,243,330$ 2,204,906$ 38,424$
Operating expenditures2,179,856 2,168,397 11,459
Total4,423,186 4,373,303 49,883
Water filter plant:
Salaries and employee benefits653,292642,852 10,440
Operating expenditures2,148,294 1,761,733 386,561
2,404,585 397,001
Total2,801,586
Waste treatment plant:
Salaries and employee benefits892,440827,679 64,761
Operating expenditures1,632,164 1,762,328 (130,164)
65,403
Total2,524,604 2,590,007 ()
o,,,9,7(,)
Debt service:
Principal retirement6,406,1376,325,440 80,697
694,334 (80,039)
Interest and other charges614,295
7,019,774 658
Total7,020,432
Capital outlay417,500 64,447 353,053
Total expenditures17,187,308 16,452,116 735,192
íèô÷ê öóîûîùóîõ çé÷é
Transfers to other funds:
Health & Dental Fun 104,194104,194 -
d
469,933 -
Electrical Capital Project Fund469,933
574,127 -
Total other financing uses574,127
Total expenditures and other financing uses17,761,435$ 17,026,243$ 735,192$
- Continued -
91
SCHEDULE 9,
Continued
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER FUND
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues $ 19,380,727
Total expenditures and other financing uses17,026,243
Revenues and other financing sources over
expenditures and other financing uses2,354,484
Reconciling items:
Debt principal 6,325,440
Amortization of deferred loss on refunding(7,768)
Amortization of bond premimum 3,935
Amortization of bond issuance costs (4,070)
Revenue bonds issued (4,756,574)
Premium on revenue bonds issued (254,299)
Bond issuance cost of revenue bonds issued86,444
Deferred loss on refunding from issuance of revenue bonds72,094
Capital outlay 64,447
Transfer from Water and Sewer Capital Projects Funds(1,158,238)
pj(,,)
Net expense from capital projects consolidation (112,766)
Decrease in compensated absences 1,003
Increase in OPEB liability (204,539)
Depreciation and amortization(1,906,067)
Total reconciling items(1,850,958)
Change in net assets$503,526
92
SCHEDULE 10,
Page 1 of 2
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER CAPITAL PROJECTS FUND
S
CAPITAL RESERV
E
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from other funds:
Water and Sewer Capital Projects Funds-$ -$ -$
Increase in fund balance- - -
Total other financing sources (uses)-$ - -$
Fund balance, beginning3,318,739
Fund balance, ending$3,318,739
93
SCHEDULE 10,
Page 2 of 2
CITY OF MONROE, NORTH CAROLINA
WATER AND SEWER CAPITAL PROJECTS FUND
S
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐÛÊÛÎÙ×
æÓ
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈèÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ûÇÈÔÍÊÓÂÛÈÓÍÎã×ÛÊÉã×ÛÊøÛÈ×î×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Investment earnings-$ 180,738$ -$ 180,738$ 180,738$
÷äì÷îøóèçê÷é
Construction costs capitalized18,727,986 7,123,783 331,6487,455,431 11,272,555
Construction in progress15,069,082 332,794 132,139464,933 14,604,149
Other costs10,873,486 419,952 112,765 532,717 10,340,769
Total expenditures44,670,554 7,876,529 576,552 8,453,081 36,217,473
(7,695,791) (576,552) (8,272,343) 36,398,211
Revenues over (under) expenditures(44,670,554)
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from (to) other funds:
Water and Sewer Fund4,491,262 5,649,500 (1,158,238) 4,491,262 -
Water and Sewer Capital Reserve Fund50,000 50,000 - 50,000 -
p,,,
Bond issuance cost - (86,444)- (86,444) (86,444)
Proceeds from refunding revenue bonds40,129,292 5,201,062 86,444 5,287,506 (34,841,786)
10,900,562 (1,158,238) 9,742,324 (34,928,230)
Total other financing sources (uses)44,670,554
Revenues and other financing sources
over (under) expenditures and other
financing uses-$ 3,204,771$ (1,734,790)$ 1,469,981$ 1,469,981$
94
SCHEDULE 11
CITY OF MONROE, NORTH CAROLINA
LECTRIC FUND
E
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
Electric power sales46,765,738$ 47,197,888$ 432,150$
Sales tax1,042,453 932,285 (110,168)
Total47,808,191 48,130,173 321,982
949,628 144,628
Other operating revenues805,000
49,079,801 466,610
Total operating revenues48,613,191
Nonoperating revenues:
Other nonoperating revenues46,000 831,730 785,730
Investment earnings600,000 104,373 (495,627)
936,103 290,103
Total nonoperating revenues646,000
Total revenues49,259,191 50,015,904 756,713
íèô÷ê öóîûîùóîõ éíçêù÷é
Transfers from other funds:
General Fund10,00010,000-
Repayment of advance from General Fund131,478131,477(1)
Repayment of advance to Stormwater Fund 39,51839,517 1
Repayment of advance to Natural Gas Fund1,168,3561,060,272108,084
Repayment of advance from Airport Fund7,710,122 7,710,122 -
Refunding revenue bonds issued2,004,607 2,004,607 -
Premium on refunding revenue bonds issued109,156 109,156 -
11,065,151 108,084
Total other financing sources11,173,237
- 6,198,618
ûììêíìêóûèóíî èí öçîø úûðûîù÷(6,198,618)
Total revenues and other financing sources$54,233,810 61,081,055$ 7,063,415$
- Continued -
95
SCHEDULE 11,
Continued
CITY OF MONROE, NORTH CAROLINA
LECTRIC FUND
E
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
÷äì÷îøóèçê÷é
Operations:
Salaries and employee benefits2,460,815$ 1,233,183$ 1,227,632$
Operating expenditures2,638,466 2,089,395 549,071
Total5,099,281 3,322,578 1,776,703
40,007,938 697,067
Electric power purchases40,705,005
Debt service:
Principal retirement3,241,8343,174,232 67,602
Interest and other charges1,075,261 1,136,110 (60,849)
4,310,342 6,753
Total4,317,095
Capital outlay1,263,360 2,147,662 (884,302)
Total expenditures51,384,741 49,788,520 1,596,221
íèô÷ê öóîûîùóîõ çé÷é
Transfers to other funds
Electric Capital Projects Funds2,801,387501,3862,300,001
Health and Dental Fund47,682 47,682 -
Total other financing uses2,849,069 549,068 2,300,001
Total expenditures and other financing uses54,233,810$ 50,337,588$ 3,896,222$
- Continued -
96
SCHEDULE 11,
Continued
CITY OF MONROE, NORTH CAROLINA
LECTRIC FUND
E
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues and other financing sources61,081,055$
Total expenditures and other financing uses50,337,588
Revenues and other financing sources under
expenditures and other financing uses10,743,467
Reconciling items:
Debt principal 3,174,232
Amortization of deferred loss on refunding(16,808)
Amortization of bond premimum 16,534
Amortization of bond issuance costs (17,306)
Refunding revenue bonds issued(2,041,713)
Premium on refunding revenue bonds issued(109,156)
Bond issuance cost37,105
Deferred loss on refunding from issuance of revenue bonds30,945
Capital outlay 2,147,662
Net book value of assets disosed101,711
p(,)
Netbookvalueofassetsdisposed(101711)
Payments received on note receivable (648,940)
Repayment of advance made to Airport Fund(7,558,943)
Repayment of advance made to Natural Gas Fund(950,724)
Repayment of advance made to Stormwater Fund(34,788)
Repayment of advance made to General Fund(85,116)
Transfer to Electric Capital Projects Funds501,386
Net revenue from capital projects consolidation2,653,116
Decrease in compensated absences 2,607
Increase in OPEB liability (90,533)
Depreciation and amortization(2,280,997)
Total reconciling items(5,373,148)
Change in net assets$5,370,319
97
SCHEDULE 12
CITY OF MONROE, NORTH CAROLINA
LECTRIC CAPITAL PROJECTS FUND
ES
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐÛÊÛÎÙ×
æÓ
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈèÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ûÇÈÔÍÊÓÂÛÈÓÍÎã×ÛÊÉã×ÛÊøÛÈ×î×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Power agency funding5,805,850$ 5,592,648$ -$ 5,592,648$ (213,202)$
Miscellaneous - 6 - 6 6
Investment earnings- 466,064 - 466,064 466,064
5,805,850 6,058,718 - 6,058,718 252,868
÷äì÷îøóèçê÷é
Construction costs capitalized26,920,715 20,153,361 8,00920,161,370 6,759,345
Construction in progress22,008,346 10,154,407 3,559,21313,713,620 8,294,726
Other costs6,773,576 366,365 - 366,365 6,407,211
Total expenditures55,702,637 30,674,133 3,567,222 34,241,355 21,461,282
Revenues over (under) expenditures(49,896,787) (24,615,415) (3,567,222) (28,182,637) 21,714,150
íèô÷ê öóîûîùóîõ éíçêù÷é
ransersrom oeruns:
Transfersfromotherfunds:
Tffthfd
Electric Fund24,746,853 24,245,463 501,386 24,746,849 (4)
Water and Sewer Fund469,933 - 469,933 469,933 -
Natural Gas Fund 2,883,184 700,000 2,183,184 2,883,184 -
Bond issuance cost- - (37,105) (37,105) (37,105)
Proceeds from refunding revenue bonds21,796,817 21,741,775 37,105 21,778,880 (17,937)
49,896,78746,687,2383,154,50349,841,741(55,046)
Revenues and other financing sources
over expenditures-$ 22,071,823$ (412,719)$ 21,659,104$ 21,659,104$
98
SCHEDULE 13
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
Natural gas sales21,278,353$ 17,010,623$ (4,267,730)$
Other operating revenues- 10,524 10,524
Total operating revenues21,278,353 17,021,147 (4,257,206)
Nonoperating revenues:
Availability fees1,168,356 1,168,356 -
Other nonoperating revenues- 16,036 16,036
65,503 (334,547)
Investment earnings400,050
1,249,895 (318,511)
Total nonoperating revenues1,568,406
Total revenues22,846,759 18,271,042 (4,575,717)
íèô÷êöóîûîùóîõéíçêù÷é
íèô÷êöóîûîùóîõéíçêù÷é
Transfers from other funds
General Fund208208 -
Refunding revenue bonds issued 870,869 870,869 -
Premium on refunding revenue bonds issued47,421 47,421 -
918,498 -
Total other financing sources918,498
(5,275,507)-
ûììêíìêóûèóíî èí öçîø úûðûîù÷5,275,507
$ (9,851,224)19,189,540$
Total revenues and other financing sources29,040,764$
- Continued -
99
SCHEDULE 13,
Continued
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
÷äì÷îøóèçê÷é
Operations:
Salaries and employee benefits844,939$ 549,567$ 295,372$
Operating expenditures2,176,938 1,703,458 473,480
Total3,021,877 2,253,025 768,852
8,510,245 4,689,755
Natural gas purchases13,200,000
Debt service:
Principal retirement1,788,0421,767,338 20,704
Interest and other charges1,806,616 1,827,044 (20,428)
Total3,594,658 3,594,382 276
738,381 (176,766)
Capital outlay561,615
15,096,033 5,282,117
Total expenditures20,378,150
íèô÷ê öóîûîùóîõ çé÷é
Transfers to other funds:
Repayment of Advance from Electric Fund1,168,356 1,060,272 108,084
Health and Dental Fund22,958 22,958 -
Electric Capital Project Fund2,183,183 2,183,184 (1)
Natural Gas Capital Project Fund5,288,117 3,288,118 1,999,999
Total other financing uses8,662,614 6,554,532 2,108,082
Total expenditures and other financing uses29,040,764$ 21,650,565$ 7,390,199$
- Continued -
100
SCHEDULE 13,
Continued
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues and other financing sources19,189,540$
Total expenditures and other financing uses21,650,565
Revenues and other financing sources over
expenditures and other financing uses(2,461,025)
Reconciling items:
Debt principal 1,767,338
Amortization of deferred loss on refunding (7,481)
Amortization of bond discount 2,762
Amortization of bond premimum (11,548)
Amortization of bond issuance costs (25,854)
Refunding revenue bonds issued (886,989)
Premium on refunding revenue bonds issued(47,421)
Bond issuance cost 16,120
Deferred loss on refunding from issuance of revenue bonds13,444
Capital outlay 738,381
py,
Repayment of advance from Electric Fund 950,724
Payment from outside party on note receivable(869,831)
Transfer to Natural Gas Capital Projects Fund3,288,118
Net income from capital projects consolidation(167,059)
Increase in compensated absences (2,820)
Increase in OPEB liability (43,590)
Depreciation and amortization(946,755)
Total reconciling items3,767,539
Change in net assets$1,306,514
101
SCHEDULE 14
CITY OF MONROE, NORTH CAROLINA
NATURAL GAS CAPITAL PROJECTS FUNDS
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛÐæÛÊÛÎÙ×
Ó
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈèÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ûÇÈÔÍÊÓÂÛÈÓÍÎã×ÛÊÉã×ÛÊøÛÈ×î×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Miscellaneous-$ 6,935$ 36$ 6,971$ 6,971$
Investment earnings- 160,033 - 160,033 160,033
Total revenues- 166,968 36 167,004 167,004
÷äì÷îøóèçê÷é
Construction costs capitalized48,484,213 41,364,805 1,406,91742,771,722 5,712,491
Construction in progress11,921,550 3,950,401 254,5094,204,910 7,716,640
Other costs428,705 416,113 - 416,113 12,592
Tota expentures,,5,7,,,7,,75,,7
ldi608344684313191661426439241344123
Revenues over (under) expenditures (45,564,351)(60,834,468) (1,661,390) (47,225,741) 13,608,727
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from other funds:
Natural Gas Fund22,201,117 16,913,000 3,288,118 20,201,118 (1,999,999)
Electric Fund3,330,000 3,330,000 - 3,330,000 -
Certificates of Participation31,628,998 31,628,998 - 31,628,998 -
Bond issuance cost- - (16,120) (16,120) (16,120)
Proceeds from refunding revenue bonds3,674,353 3,650,441 16,120 3,666,561 (7,792)
Tota oternancng sources uses 55,5,,,,,5,,557,,
lhfii()608344682243932881188810(2023911)
Revenues and other financing sources
over (under) expenditures-$ 9,958,088$ 1,626,728$ 11,584,816$ 11,584,816$
102
SCHEDULE 15
CITY OF MONROE, NORTH CAROLINA
AQUATICS AND FITNESS CENTER FUN
D
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
×ÈûÙÈÇÛî×ÛÈÓÆ×
úÇØ
ÕÐÕ
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
Recreational fees3,708,000$ 3,787,318$ 79,318$
Other operating revenues148,000 139,863 (8,137)
3,927,181 71,181
Total operating revenues3,856,000
Nonoperating revenues:
Other nonoperating revenues- - -
Investment earnings37,000 7,794 (29,206)
Total nonoperating revenues37,000 7,794 (29,206)
Total revenues3,893,000 3,934,975 41,975
- 65,747
ûììêíìêóûèóíî èí öçîø úûðûîù÷(65,747)
Total revenues$ 3,934,9753,827,253$ 107,722$
- Continued -
103
SCHEDULE 15,
Continued
CITY OF MONROE, NORTH CAROLINA
AQUATICS AND FITNESS CENTER FUN
D
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
÷äì÷îøóèçê÷é
Operations:
Salaries and employee benefits1,740,583$ 1,640,232$ 100,351$
Operating expenditures1,574,593 1,474,031 100,562
ota,,,,,
Tl33151763114263200913
Debt service:
Principal retirement424,370424,370-
Interest and other charges48,281 48,281 -
472,651 -
Total472,651
11,803 8,197
Capital outlay20,000
3,598,717 209,110
Total expenditures3,807,827
íèô÷ê öóîûîùóîõ çé÷é
TftthfdTransfers to other funds:
19,426 -
Health and Dental Fund19,426
19,426 -
Total other financing uses19,426
3,618,143$ 209,110$
Total expenditures and other financing uses3,827,253$
- Continued -
104
SCHEDULE 15,
Continued
CITY OF MONROE, NORTH CAROLINA
AQUATICS AND FITNESS CENTER FUN
D
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues$ 3,934,975
Total expenditures and other financing uses3,618,143
Revenues over expenditures and
other financing uses316,832
Reconciling items:
Debt principal 424,370
Capital outlay 11,803
Increase in compensated absences (5,671)
Increase in OPEB liability (77,121)
Depreciation and amortization(268,950)
Total reconciling items84,431
Change in net assets$401,263
105
SCHEDULE 16
CITY OF MONROE, NORTH CAROLINA
AIRPORT FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
Leases262,340$ 298,152$ 35,812$
Flowage fee- - -
Sales of fuel1,140,1591,319,287179,128
Total1,402,499 1,617,439 214,940
Other operating revenues30,100 35,839 5,739
Total operating revenues1,432,599 1,653,278 220,679
onoperatng revenues:
Ni
Investment earnings- 14,211 14,211
Total nonoperating revenues- 14,211 14,211
Totalrevenuesoa revenues1432599,,1667489,,234890,
Ttl14325991667489234890
íèô÷ê öóîûîùóîõ éíçêù÷é
Transfers from other funds:
General Fund2,922,439 2,788,142 (134,297)
Airport Capital Projects Fund6,143,922 6,143,922 -
Refunding revenue bonds issued11,719,666 11,719,666 -
Premium on refunding revenue bonds issued638,063 638,063 -
Installment purchase obligations issued60,000 49,500 (10,500)
Total other financing sources21,484,090 21,339,293 (144,797)
ûììêíìêóûèóíî èí öçîø úûðûîù÷524,212 - (524,212)
Total revenues and other financing sources23,440,901$ 23,006,782$ (434,119)$
- Continued -
106
SCHEDULE 16,
Continued
CITY OF MONROE, NORTH CAROLINA
AIRPORT FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ÍÉÈÆ×
ìÓÓ
ÇÕ×ÈÙÈÇÛ×ÕÛÈÆ×
úØûÐîÓ
÷äì÷îøóèçê÷é
Operations:
Salaries and employee benefits521,855$ 499,161$ 22,694$
Operating expenditures1,554,389 1,743,927 (189,538)
Total2,076,244 2,243,088 (166,844)
Debt service:
Principal retirement12,965,47812,721,796243,682
Interest and other charges575,534 763,818 (188,284)
Total13,541,012 13,485,614 55,398
Capital outlay99,395 83,730 15,665
Total expenditures15,716,651 15,812,432 (95,781)
íèô÷ê öóîûîùóîõ çé÷é
Transfers to other funds:
Health and Dental Fund14,128 14,128 -
Repayment of advance from Electric Fund7,710,122 7,710,122 -
Total other financing sources7,724,250 7,724,250 -
Total expenditures and other financing sources23,440,901$ 23,536,682$ (95,781)$
- Continued -
107
SCHEDULE 16,
Continued
CITY OF MONROE, NORTH CAROLINA
AIRPORT FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues and other financing sources23,006,782$
Total expenditures and other financing sources23,536,682
Revenues and other financing sources over
expenditures and other financing uses(529,900)
Reconciling items:
Debt principal 12,721,796
Amortization of bond issuance costs (3,053)
Repayment of advance from Electric Fund7,558,943
Capital outlay 83,730
Net book value of assets disposed (130,346)
Refunding revenue bonds issued (11,934,724)
Premium on refunding revenue bonds issued(638,063)
Bond issuance cost of revenue bonds issued215,058
Installment purchase obligations issued (49,500)
Netrevenuefromcapitalprojectsconsolidatione revenue rom capa proecs consoaon2152427,,
Ntfitljtlidti2152427
Deferred loss on refunding from issuance of revenue bonds308,425
Transfer from Airport Capital Projects Fund(6,143,923)
Decrease in compensated absences 666
Increase in OPEB liability (36,884)
Depreciation and amortization(639,068)
Total reconciling items3,465,484
Change in net assets$2,935,584
108
SCHEDULE 17
CITY OF MONROE, NORTH CAROLINA
AIRPORT CAPITAL PROJECTS FUND
S
CAPITAL PROJECTS
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
From Inception and For the Fiscal Year Ended June 30, 2011
ûÙÈÇÛæÛÊÓÛÎÙ
Ð
×
ìÊÍÒ×ÙÈìÊÓÍÊùÇÊÊ×ÎÈèÍÈÛÐ ÈÍìÍÉÓÈÓÆ×
ûÇÈÔÍÊÓÂÛÈÓÍÎã×ÛÊÉã×ÛÊøÛÈ×î×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Restricted intergovernmental4,920,869$ 686,250$ $ 2,150,000$ 2,836,250$ (2,084,619)
Investment earnings 407,419- 6,908 414,327 414,327
Total revenues4,920,869 1,093,669 2,156,908 3,250,577 (1,670,292)
÷äì÷îøóèçê÷é
Construction costs capitalized8,774,560 6,150,849 1,030,282 7,181,131 1,593,429
Construction in progress 9,991,957 5,451,388 1,689,730 7,141,118 2,850,839
Other costs85,491 86,727 60,152 146,879 (61,388)
Total expenditures18,852,008 11,688,964 2,780,164 14,469,128 4,382,880
Revenues over (under) expenditures (13,931,139) (10,595,295) (623,256) (11,218,551) 2,712,588
íèô÷ê öóîûîùóîõ éíçêù÷é çé÷é
Transfers from (to) other funds:
General Fund466,668 419,838 46,830 466,668 -
Airport Fund 332,849 6,476,771 (6,143,923) 332,848 (1)
Proceeds from refunding revenue bonds12,571,622 12,239,117 12,454,175215,058 (117,447)
Bond issuance cost - (215,058)- (215,058) (215,058)
Installment purchase obligations issued560,000 - - - (560,000)
19,135,726 (6,097,093) 13,038,633 (892,506)
Total other financing sources (uses)13,931,139
Revenues and other financing sources over
(under) expenditures and other financing uses-$ 8,540,431$ (6,720,349)$ 1,820,082$ 1,820,082$
109
SCHEDULE 18
CITY OF MONROE, NORTH CAROLINA
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
Storm water receipts1,798,542$$1,793,744 (4,798)$
Total operating revenues1,798,542 1,793,744 (4,798)
Nonoperating revenues:
Other nonoperating revenues- 5 5
Investment earnings300 1,687 1,387
Total nonoperating revenues300 1,692 1,392
1,795,436 (3,406)
Total revenues1,798,842
íèô÷ê öóîûîùóîõ éíçêù÷é
458,000 -
Installment purchase obligations issued458,000
458,000 -
Total other financing sources458,000
ûììêíìêóûèóíî èí öçîø úûðûîù÷91,724 - (91,724)
Total revenues 2,348,566$ 2,253,436$ (95,130)$
- Continued -
110
SCHEDULE 18,
Continued
CITY OF MONROE, NORTH CAROLINA
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
÷äì÷îøóèçê÷é
Operations:
Salaries and employee benefits626,623$ 567,147$ 59,476$
Reimbursements602,042 602,042 -
Operating expenditures483,412 420,803 62,609
1,589,992 122,085
Total1,712,077
Debt service:
Principal retirement32,311 33,340 (1,029)
Interest and other charges10,000 8,986 1,014
Total42,311 42,326 (15)
5,224 531,776
Capital outlay537,000
Total expenditures2,291,388 1,637,542 653,846
íèô÷ê öóîûîùóîõ çé÷é
Transfers to other funds:
Health and Dental Fund17,660 17,660 -
39,517 (1)
Repayment of advance from Electric Fund39,518
57,177 (1)
Total other financing uses57,178
Total expenditures and other financing uses2,348,566$ 1,694,719$ 653,845$
- Continued -
111
SCHEDULE 18,
Continued
CITY OF MONROE, NORTH CAROLINA
STORM WATER FUND
SCHEDULE OF REVENUES AND EXPENDITURES -
-
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues and other financing sources2,253,436$
Total expenditures and other financing uses1,694,719
Revenues and other financing sources over
expenditures and other financing uses558,717
Reconciling items:
Debt principal 33,340
Repayment of advance from Electric Fund39,517
Capital outlay 5,224
Installment purchase obligations issued(458,000)
Increase in compensated absences (3,023)
Increase in OPEB liability (33,531)
Depreciation and amortization(60,326)
Total reconciling items(476,799)
Change in net assets$81,918
112
SCHEDULE 19
CITY OF MONROE, NORTH CAROLINA
SOLID WASTE FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
ê÷æ÷îç÷é
Operating revenues:
Charges for services:
$2,796,756 (932)$
Refuse collection fees2,797,688$
Total2,797,688 2,796,756 (932)
Other operating revenues20,000 25,840 5,840
Total operating revenues2,817,688 2,822,596 4,908
Nonoperating revenues:
Investment earnings6,000 2,288 (3,712)
Total nonoperating revenues6,000 2,288 (3,712)
Total revenues2,823,688 2,824,884 1,196
ûììêíìêóûèóíî èí öçîø úûðûîù÷ -(8,936) 8,936
Total revenues and other financing uses2,814,752$ 2,824,884$ 10,132$
- Continued -
113
SCHEDULE 19,
Continued
CITY OF MONROE, NORTH CAROLINA
SOLID WASTE FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
æÛÊÓÛÎÙ×
ìÍÉÓÈÓÆ×
úÇØÕ×ÈûÙÈÇÛÐî×ÕÛÈÓÆ×
÷äì÷îøóèçê÷é
Operations:
Salaries and employee benefits7,070$ 7,086$ (16)$
Operating expenditures2,807,682 2,686,069 121,613
Total2,814,752 2,693,155 121,597
Total expenditures2,814,752$ 2,693,155$ 121,597$
- Continued -
114
SCHEDULE 19,
Continued
CITY OF MONROE, NORTH CAROLINA
SOLID WASTE FUND
SCHEDULE OF REVENUES AND EXPENDITURES --
UDGET AND ACTUAL (NON-GAAP)
B
For the Fiscal Year Ended June 30, 2011
ê×ÙÍÎÙÓÐÓÛÈÓÍÎ ÖÊÍÏ ÚÇØÕ×ÈÛÊà ÚÛÉÓÉ ÏÍØÓÖÓ×Ø ÛÙÙÊÇÛÐ ÈÍ ÖÇÐÐ ÛÙÙÊÇÛÐ
Total revenues $ 2,824,884
Total expenditures 2,693,155
Revenues over expenditures131,729
Reconciling items:
Increase in compensated absences (397)
Increas in OPEB liability(3,353)
Total reconciling items(3,750)
Change in net assets$127,979
115
SCHEDULE 20
CITY OF MONROE, NORTH CAROLINA
HEALTH AND DENTAL FUND
SCHEDULE OF REVENUES AND EXPENDITURES (NON-GAAP)
FOR THE YEAR ENDED JUNE 30, 2011
æÛÊÓÛÎÙ×
öÛÆÍÊÛÚÐ×
úÇØÕ×ÈûÙÈÇÛÐçÎÖÛÆÍÊÛÚÐ×
ê÷æ÷îç÷é
Operating revenues
Interfund charges and employee contributions4,624,739$ 4,629,055$ 4,316$
Other operating revenue- 192,879 192,879
Total operating revenues4,624,739 4,821,934 197,195
Nonoperating revenues
Investment earnings1,000 469 (531)
Transfers from other funds1,300,000 1,300,000 -
Total nonoperating revenues1,301,000 1,300,469 (531)
Total revenues5,925,739 6,122,403 196,664
÷äì÷îøóèçê÷é
Operating expenditures
Health care clinic97,000 66,880 30,120
Health benefit claims and premiums4,795,757 5,161,938 (366,181)
Total operating expenditures4,892,757 5,228,818 (336,061)
ûììêíìêóûèóíî èí öçîø úûðûîù÷ -1,032,982 1,032,982
Total expenditures5,925,739 5,228,818 696,921
Revenues over expenditures-$ 893,585$ 893,585$
116
SCHEDULE 21
CITY OF MONROE, NORTH CAROLINA
WORKERS' COMPENSATION FUND
SCHEDULE OF REVENUES AND EXPENDITURES (NON-GAAP)
FOR THE YEAR ENDED JUNE 30, 2011
æÛÊÓÛÎÙ×
öÛÆÍÊÛÚÐ×
úÇØÕ×ÈûÙÈÇÛÐçÎÖÛÆÍÊÛÚÐ×
ê÷æ÷îç÷é
Operating revenues
Other operating revenue-$ 1,164$ 1,164$
Total operating revenues- 1,1641,164
Nonoperating revenues
Investment earnings1,000 2,264 1,264
Appropriated fund balance800,000 - (800,000)
Total nonoperating revenues801,000 2,264 (798,736)
Total revenues801,000 3,428 (797,572)
÷äì÷îøóèçê÷é
Operating expenditures
Workers' compensation claims and premiums paid301,000 123,748 177,252
Total operating expenditures301,000 123,748 177,252
Nonoperating expenditures
Transfers to other funds500,000 500,000 -
Total nonoperating expenditures500,000 500,000 -
Total expenditures801,000 623,748 177,252
Revenues under expenditures-$ (620,320)$ (620,320)$
117
SCHEDULE 22
CITY OF MONROE, NORTH CAROLINA
PROPERTY AND CASUALTY FUND
SCHEDULE OF REVENUES AND EXPENDITURES (NON-GAAP)
FOR THE YEAR ENDED JUNE 30, 2011
æÛÊÓÛÎÙ×
öÛÆÍÊÛÚÐ×
úÇØÕ×ÈûÙÈÇÛÐçÎÖÛÆÍÊÛÚÐ×
ê÷æ÷îç÷é
Operating revenues
Interfund charges and employee contributions645,000$ 645,000$ -$
Other operating revenue- 3,521 3,521
Total operating revenues645,000 648,521 3,521
Nonoperating revenues
Investment earnings100 336 236
Total nonoperating revenues100 336 236
Total revenues645,100 648,857 3,757
÷äì÷îøóèçê÷é
Operating expenditures
Property and liability claims and premiums645,100 547,421 97,679
Total expenditures645,100 547,421 97,679
Revenues over expenditures-$ 101,436$ 101,436$
118
SCHEDULE 23
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF AD VALOREM TAXES RECEIVABL
E
une 30, 2011
J
çÎÙÍÐÐ×ÙÈ×ØçÎÙÍÐÐ×ÙÈ×Ø
úÛÐÛÎÙ×ùÍÐÐ×ÙÈÓÍÎÉúÛÐÛÎÙ×
öÓÉÙÛÐ ã×ÛÊòÇÎ×
ûØØÓÈÓÍÎÉûÎØ ùÊ×ØÓÈÉòÇÎ×
2010 - 2011-$ 19,224,347$ 18,645,681$ 578,666$
2009 - 2010580,326 - 319,579 260,747
2008 - 2009178,769 - 68,029 110,740
2007 - 2008115,232 - 23,068 92,164
2006 - 200780,992 - 31,583 49,409
2005 - 200628,388 - 2,822 25,566
2004 - 200520,753 - 827 19,926
2003 - 200415,804 - 193 15,611
2002 - 200318,283 - 128 18,155
2001 - 20028,648 - 32 8,616
2000 - 200116,109 - 16,109 -
$ 19,224,3471,063,304$ 19,108,051$
Ad valorem taxes receivable$1,179,600
Municipal Service
District - Downtown
Reconcilement with revenues:General FunMonroe FundTotal
d
Ad valorem taxes - General fund$ 19,166,334$ 50,285$ 19,216,619
Amounts written off per statute of limitations 16,109 - 16,109
Refunds, releases of prior years' taxes 29,223 - 29,223
Interest and advertising cost recovery (538)(103,615) (104,153)
Total collections and credits19,108,051$ 49,747$ 19,157,798$
119
CHEDULE 24
S
CITY OF MONROE, NORTH CAROLINA
ANALYSIS OF CURRENT TAX LEVY
CITY-WIDE LEVY
For the Fiscal Year Ended June 30, 2011
èÍÈÛÐ ð×Æ
Ã
ìÊÍÌ×ÊÈÃ
×ÄÙÐÇØÓÎÕ
ùÓÈà åÓØ×Ê×ÕÓÉÈ×Ê×Øê×ÕÓÉÈ×Ê×Ø
ìÊÍÌ×ÊÈÃèÍÈÛÐïÍÈÍÊïÍÈÍÊ
æÛÐÇÛÈÓÍÎêÛÈ×ð×ÆÃæ×ÔÓÙÐ×Éæ×ÔÓÙÐ×É
Original levy:
Property taxed at current
year's rate3,307,292,159$ 0.555 18,403,409$ 17,776,959$ 626,450$
Municipal Sevice District21,203,423 42,756 42,756 -
0 .200
Registered motor vehicles taxed
at prior year's rate 413,36873,659,039 - 413,368
Total 3,402,154,621 18,859,533 17,819,715 1,039,818
Public Utility Allocation:
City wide67,325,152 380,372 380,372 -
0 .555
Municipal Service District 1,892,410 3,785 3,785 -
0 .200
Discoveries
City wide 12,283,845 68,541 54,989 13,552
0 .555
Municipal Service District- - - -
0 .200
Abatements
City wide (17,920,460) (87,877) (45,022) (42,855)
0 .555
Municipal Service District 0.200(4,080) (8) (8) -
Total property valuation3,465,731,488$
Net levy 19,224,346 18,213,831 1,010,515
Uncollected taxes at June 30, 2011(578,666) (441,626) (137,040)
Current year's taxes collected18,645,680$ 17,772,205$ 873,475$
Current levy collection percentage96.99%97.58%86.44%
Secondary Market Disclosures:
Propert
y
Valuation
RateLevy
Assessed Valuation:
1
Assessment Ratio
100%
Real property$2,402,580,432
Personal property 777,420,237
2
Public Service Companies
67,325,152
3,247,325,821
0 .55518,167,298
Municpal Service District
Real property 19,704,750
Personal property 1,494,593
2
Public Service Companies
1,892,410
23,091,753 46,533
0 .200
Motor Vehicle Property 121,654,875 597,147
0 .555
Motor Vehicle Property 0.49573,659,039 413,368
3
Total levy (includes discoveries, releases and abatements)
$ 19,224,3463,465,731,488$
Distribution of levy:
General Fund$ 19,177,813
Municipal Service District - Downtown Monroe Fun46,533
d
$19,224,346
1
Percentage of appraised value has been established by statute.
2
Valuation of railroads, telephone companies and other utilities as determined by the
North Carolina Property Tax Commission.
3
The levy includes interest and penalties.
120
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
.�IONROE
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 OFMONROE, NORTH CAROLINA
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
(in thousands of dollars)
TABLE I
2002 2003
2004
2005
2006
2007
2008
2009
2010
2011
$ $ 72,069
$ 73,696
$ 74,193
$ 73,177
$ 71,568
$ 73,467
$ 74,438
$ 73,296
$ 71,692
629
538
624
239
144
45
2
255
670
17,884
19,638
19,717
18,683
20,924
20,718
20,739
20,359
20,979
$ $ 90,582
$ 93,872
$ 94,534
$ 92,099
$ 92,636
$ 94,229
$ 95,179
$ 93,910
$ 93,341
$ $
84,905
$
92,356
$
101,382
$
109,561
$
118,219
$
127,957
$
127,104
$
141,269
$
144,182
62,267
62,274
63,956
68,479
77,350
84,078
91,595
86,319
94,053
$ $
147,172
$
154,630
$
165,338
$
178,040
$
195,569
$
212,035
$
218,699
$
227,588
$
238,235
$ $
156,974
$
166,052
$
175,575
$
182,738
$
189,787
$
201,424
$
201,542
$
214,565
$
215,874
629
538
624
239
144
45
2
255
670
80,151
81,912
83,673
87,162
98,274
104,796
112,334
106,678
115,032
$ $
237,754
$
248,502
$
259,872
$
270,139
$
288,205
$
306,264
$
313,878
$
321,498
$
331,576
Note:
Data for fiscal year 2002 not available. These periods were prior to the implementation of GASB Statement 34.
123
EXPENSES
Governmental activities:
General government
Transportation
Public safety
Environmental protection
Culture and recreation
Economic and physical development
Interest on long -term debt
Total governmental activities expenses
Business -type activities:
Water and sewer
Electric
Natural gas
Aquatics and Fitness Center
Stormwater
Solid Waste
Airport
Total business -type activities expenses
Total primary government expenses
PROGRAM REVENUES
Governmental activities:
Charges for services:
General government
Transportation
Public safety
Environmental protection
Culture and recreation
Economic and physical development
Operating grants and contributions:
General government
Transportation
Public safety
Environmental protection
Culture and recreation
Economic and physical development
Capital grants and contributions:
Transportation
Public safety
Culture and recreation
Total governmental activities program revenues
TABLE 2
CITY OF MONROE, NORTH CAROLINA
CHANGES INNETASSETS
LAST TEN FISCAL YEARS
(accrual basis of'accountinp)
(in thousands of'dollars)
2002 2003
2004
2005
2006
2007
2008
2009
2010
2011
$ $ 4,216
$ 4,243
$ 4,133
$ 4,600
$ 4,176
$ 4,945
$ 4,725
S 4,952
$ 5,294
3,652
4,409
4,119
4,482
4,444
4,966
5,441
5,667
4,699
9,156
10,291
10,776
12,069
13,557
14,247
17,974
17,775
18,224
1,854
1,894
1,903
2,007
2,349
2,551
-
-
-
3,307
3,462
3,197
3,483
3,802
3,922
4,914
4,906
4,545
357
791
898
1,404
2,140
948
859
1,784
1,119
212
232
158
187
205
238
312
161
107
22,754
25,322
25,184
28,232
30,673
31,817
34,225
35,245
33,988
8,388
9,202
8,826
8,525
8,907
11,381
11,543
11,520
11,955
31,120
32,369
33,990
35,491
37,042
39,703
41,629
43,588
46,840
14,867
20,171
19,305
20,791
16,037
16,942
16,867
17,585
13,913
1,806
2,335
2,779
2,881
2,934
3,187
3,725
3,436
3,549
-
-
-
-
-
-
795
1,351
1,709
-
-
-
-
-
-
2,698
2,702
2,697
489
595
596
1,272
2,187
2,865
3,232
3,498
3,553
56,670
64,672
65,496
68,960
67,107
74,077
80,489
83,680
84,216
S S 79,424
S 89,994
S 90,680
S 97,192
S 97,780
S 105,894
S 114,714
S 118,925
S 118,204
S S 887
S 864
S 1,118
S 1,279
S 1,261
S 1,132
S 2,029
S 1,979
S 1,955
-
-
-
-
-
-
243
236
202
38
78
84
96
65
51
2,065
2,213
2,312
1,742
1,855
1,914
2,062
2,761
2,795
43
-
-
710
747
708
761
814
844
1,239
1,194
1,232
7
12
8
4
13
3
2
8
3
20
314
32
69
85
8
-
-
-
872
872
986
998
1,004
1,154
1,082
986
1,032
508
270
206
246
897
1,017
604
732
616
-
26
2
4
2
2
1
-
-
5
124
172
243
197
216
223
195
204
148
210
236
93
83
7
194
326
135
10,207
3,488
1,147
647
45
2,435
3,460
1,187
-
-
-
-
-
-
-
-
-
49
-
-
-
-
-
-
-
785
304
15,144
8,860
124 6,613
6,502
7,227
9,665
11,184
9,841
8,044
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
12,917
Electric
33,926
34,513
35,993
39,118
39,854
43,051
40,926
43,089
48,454
Natural gas
17,056
21,940
21,064
22,683
18,163
18,836
20,116
24,251
17,320
Aquatics and Fitness Center
2,661
2,990
3,336
3,734
4,057
4,162
4,069
3,907
3,927
Stormwater
-
-
-
-
-
-
822
1,776
1,794
Solid Waste
-
-
-
-
-
-
2,748
2,839
2,822
Airport
138
178
255
676
1,398
1,897
1,559
1,493
1,653
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
2,150
Total business -type activities program revenues
65,995
71,529
73,743
79,619
80,129
83,569
83,236
90,203
91,037
Total primary government revenues
$
$ 81,139
$ 80,389
$
80,356
$
86,121
$
87,356
$
93,234
$
94,421
$
100,044
$
99,081
NET(EXPENSE)REVENUE
Governmental activities
$
$ (7,610)
$ (16,462)
$
(18,571)
$
(21,730)
$
(23,446)
$
(22,152)
$
(23,041)
$
(25,404)
$
(25,944)
Business -type activities
9,325
6,857
8,247
10,659
13,022
9,492
2,748
6,523
6,821
Total primary government net (expense) revenue
$
$ 1,715
$ (9,605)
$
(10,324)
$
(11,071)
$
(10,424)
$
(12,660)
$
(20,293)
$
(18,881)
$
(19,123)
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
$
19,314
Local option sales tax
-
-
4,672
4,406
4,958
4,884
4,096
3,537
3,906
Utility taxes
-
-
1,199
1,299
1,364
1,430
1,364
1,432
1,543
Othertaxes
6,067
7,302
1,449
1,610
1,790
1,878
1,931
1,745
2,212
Grants and contributions not restricted to
specific programs
127
130
127
127
202
251
225
242
218
Unrestricted investment earnings
671
41
553
381
1,141
1,259
495
273
65
Miscellaneous
367
325
327
301
441
476
520
565
726
Gain on sale of capital assets
-
964
72
99
-
199
(19)
96
11
Transfers
(789)
(383)
(745)
(1,035)
237
(442)
(908)
(710)
(2,619)
Total governmental activities
16,921
19,346
19,231
19,295
23,985
25,239
23,990
24,134
25,376
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
289
Miscellaneous
(4)
179
-
150
65
60
63
395
858
Gain on sale of capital assets
-
(17)
-
(5)
1,214
1
(47)
291
60
Transfers
789
383
744
1,035
(237)
442
908
710
2,619
Total business -type activities
3,041
599
2,460
2,042
4,508
5,356
3,916
2,367
3,826
Total primary government
$
$ 19,962
$ 19,945
$
21,691
$
21,337
$
28,492
$
30,596
$
27,906
$
26,501
$
29,202
CHANGE IN NET ASSETS
Governmental activities
$
$ 9,311
$ 2,884
$
660
$
(2,435)
$
539
$
3,087
$
950
$
(1,270)
$
(568)
Business -type activities
12,366
7,456
10,707
12,701
17,529
14,848
6,664
8,890
10,647
Total primary government
$
$ 21,677
$ 10,340
$
11,367
$
10,266
$
18,069
$
17,935
$
7,614
$
7,620
$
10,079
Notes:
Data for fiscal year 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
Unreserved
Nonspendable
Restricted
Assigned
Unassigned
Total General Fund
All Other Governmental Funds
Reserved
Unreserved, reported in:
Special Revenue Funds
Capital Projects Funds
Restricted
Assigned
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)
(m thousands of'dollars)
FISCAL YEAR
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
$ 6,346
$ 4,463
$ 4,963
$ 5,601
$ 5,590
$ 4,251
$ 4,972
$ 4,058
$ 4,012
$ 4,462
10,502
13,186
14,668
13,375
12,582
13,803
15,635
13,808
15,614
16,017
$ 331
4,130
$ 2,097
$ 1,943
$ 1,663
$ 2,233
$ 1,795
$ 3,866 $
2,600 $
5,021
$ 1,728
2,975
13,042
$ 16,848
$ 17,649
$ 19,631
$ 18,976
$ 18,172
$ 18,054
$ 20,607
$ 17,866
$ 19,626
$ 20,478
$ 897
$ 801
$ 1,217
$ 825
$ 286
$ 430 $
3 $
93
$ 233
$ 6
297
323
201
307
433
1,552
1,418
1,600
1,609
53
903
819
245
1,101
1,076
1,884
1,179
3,328
(114)
1,221
$ 6
1,275
$ 2,097
$ 1,943
$ 1,663
$ 2,233
$ 1,795
$ 3,866 $
2,600 $
5,021
$ 1,728
$ 1,281
Notes:
Fiscal year 2011 reflects implementation of GASB Statement 54. Prior year amounts have not been restated.
The classification of fund balance amounts in 2011 is discussed in the notes to the financial statements section I.E.12.
iK
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
OTHER FINANCING SOURCES (USES)
Transfers from (to) others
(714)
(789)
(383)
(745)
FISCAL YEAR
237
(573)
(3,430)
(710)
(3,419)
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
REVENUES
Installment purchase obligations issued
727
1,578
3,142
2,492
1,713
945
3,317
3,661
475
Ad valorem taxes
$ 10,235
$ 10,640
$ 11,043
$ 11,578
$ 12,049
$ 13,655
$ 15,265
$ 16,134
$ 16,909
$ 19,217
Other taxes and licenses
3,996
4,510
5,643
912
1,040
1,044
1,227
1,220
874
1,249
Unrestricted intergovernmental
761
1,672
1,749
6,490
6,332
7,176
7,177
6,360
6,044
6,586
Restricted intergovernmental
1,084
1,688
2,279
2,505
2,240
2,195
2,378
2,826
3,274
2,399
Program income
63
12
41
10
6
84
6
2
7
2
Sales and services (1)
3,443
3,334
4,513
3,742
4,292
5,012
5,137
1,961
1,740
1,708
Investment earnings
790
671
24
553
381
1,141
1,259
495
273
64
Miscellaneous
586
451
498
563
396
522
650
611
548
747
Total revenues
20,958
22,978
25,790
26,353
26,736
30,829
33,099
29,609
29,669
31,972
EXPENDITURES
General government
2,707
3,791
3,967
4,207
4,273
3,801
4,578
4,086
4,170
3,410
Transportation
1,422
1,698
1,984
1,858
2,144
2,162
2,426
2,452
1,727
1,484
Public safety
8,025
8,483
9,939
9,957
10,996
12,593
13,304
13,864
14,385
14,332
Environmental protection (1)
1,847
1,732
1,761
1,784
1,896
2,349
2,551
-
-
-
Culture and recreation
3,134
3,064
2,827
2,924
3,037
3,426
3,536
3,902
3,554
3,894
Economic and physical development
169
344
792
610
585
1,460
830
986
1,909
2,045
Capital outlay
4,440
2,682
2,992
5,131
3,878
2,446
5,487
2,619
2,832
1,091
Debt service:
Principal retirement
1,148
1,116
2,761
1,555
1,659
1,617
1,660
1,828
1,922
1,962
Interest and other charges
205
212
232
158
187
205
182
310
337
61
Total expenditures
23,097
23,122
27,255
28,184
28,655
30,059
34,554
30,047
30,836
28,279
Excess (deficiency) of revenues over
(under) expenditures
(2,139)
(144)
(1,465)
(1,831)
(1,919)
770
(1,456)
(438)
(1,167)
3,693
OTHER FINANCING SOURCES (USES)
Transfers from (to) others
(714)
(789)
(383)
(745)
(1,035)
237
(573)
(3,430)
(710)
(3,419)
Repayment of advance from other funds
(131)
(131)
Installment purchase obligations issued
727
1,578
3,142
2,492
1,713
945
3,317
3,661
475
263
Total other financing sources (uses)
13
789
2,759
1,747
678
1,182
2,744
231
(366)
(3,287)
Net change in fund balances
$ (2,126)
$ 645
$ 1,294
$ (84)
$ (1,241) $
1,952
$ 1,288
$ (207)
$ (1,533)
$ 406
Debt service as a percentage of
noncapital expenditures
7.25%
6.50%
12.34%
7.43%
7.45%
6.60%
6.34%
7.79%
8.07%
7.44%
Note:
(1) The Solid Waste Fund was established in 2009. Previously, these revenues
and expenditures were included in the General Fund.
127
CITY OFMONROE, NORTH CAROLINA
ASSESSED VALUEAND ACTUAL VALUE OF TAXABLE PROPERTY
LAST TEN FISCAL YEARS
(in thousands of'dollars)
Fiscal
Real
Personal
Year
Property
Property
2002
$ 1,332,315
$ 449,127 $
2003
1,388,118
460,214
2004
1,490,483
451,967
2005
1,691,376
444,329
2006
1,697,294
459,106
2007
1,779,327
521,941
2008
1,878,050
583,078
2009
2,346,529
659,913
2010
2,386,289
765,537
2011
2,429,534
777,420
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
Public
Motor
Service
Vehicle
Companies
188,341
$ 44,021 $
193,463
43,444
170,653
41,854
198,995
41,408
238,446
43,934
226,844
43,261
227,535
49,984
207,793
49,487
186,439
60,724
189,559
69,218
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
Total
Direct
Assessed
Tax Rate
Value
(1)
2,013,804
$ 0.500
2,085,239
0.500
2,154,957
0.500
2,376,108
0.480
2,438,780
0.490
2,571,373
0.530
2,738,647
0.550
3,263,722
0.495
3,398,989
0.495
3,465,731
0.555
TABLE 5
CITY OFMONROE, NORTH CAROLINA
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN YEARS
(rate per SI00 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
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
0.4964
0.6650
1.1614
2011
0.5550
0.2000
0.5547
0.6650
1.2197
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
2002
2011
Percentage
Percentage
of
of
Total
Total
Taxable
Taxable
Taxable
Taxable
Assessed
Assessed
Assessed
Assessed
Taxpayer
Value
Rank
Value
Value
Rank
Value
Allegheny Technologies (Allvac)
$ 60,468
2
2.9%
$ 306,725
1
8.9%
Charlotte Pipe & Foundry Co.
104,756
1
5.2%
107,378
2
3.1%
Turbomeca
-
-
45,457
3
1.3%
Tyson Farms, Inc. (Tyson Foods, Inc.)
37,242
3
1.8%
41,533
4
1.2%
Consolidated Metco, Inc.
28,355
4
1.4%
29,984
5
0.9%
Inland American Monroe Poplin
-
-
27,788
6
0.8%
Yale Security (Assa Abloy - Door Security)
17,932
6
0.9%
25,126
7
0.7%
Greiner Bio -One
-
-
19,421
8
0.6%
Scott Technologies
-
-
18,422
9
0.5%
Monroe Mall (Madison)
18,267
5
0.9%
18,455
10
0.5%
Square D Company
14,375
8
0.7%
-
-
Goulston Technologies
13,616
9
0.7%
Cooper Industries
17,717
7
0.9%
Westdale Insterstate Properties
13,509
10
0.7%
-
-
Total
$ 326,238
16.2%
$ 640,289
18.5%
Source: City of Monroe Tax System
130
TABLE 7
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Taxes
Levied for the
Fiscal Year
$ 9,774 $
10,236
10,682
10,869
11,959
13,429
14,647
16,100
16,490
18,859
Source: City of Monroe Tax System
CITY OFMONROE, NORTH CAROLINA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(in thousands of'dollars)
TABLE 8
131
Collected within the
Taxes
Fiscal Year of
Total Collections to Date
Public
Levied for the
the Levy
Collections in
Percentage
Utility
Fiscal Year
Percentage
Subsequent
of Adjusted
Allocation
Discoveries
Abatements
(Adjusted)
Amount ofLevy
Years
Amount
Levy
220
$ 214
$ 51 $
10,157
$ 9,833 96.81%
$ 315
$ 10,148
99.91%
217
79
82
10,450
10,117 96.82
315
10,432
99.83
209
107
90
10,908
10,644 97.58
248
10,892
99.85
199
472
106
11,434
11,178 97.77
236
11,414
99.83
215
17
100
12,091
11,754 97.22
311
12,065
99.78
229
407
137
13,928
13,290 96.45
589
13,879
99.65
275
278
107
15,093
14,607 96.78
394
15,001
99.39
245
45
159
16,231
15,669 96.54
451
16,120
99.32
300
160
78
16,872
16,292 96.56
319
16,611
98.45
384
69
88
19,224
18,646 96.99
-
18,646
96.99
131
CITY OFMONROE, NORTH CAROLINA
RATIOS OF OUTSTANDING DEBT BY TYPE
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 personal income and population data. These ratios are calculated using personal
income and population for prior calendar year. Calendar year 2009 and 2010 personal income not
available to calculate fiscal year 2010 and 2011.
(2) Personal income not available for 2010 and 2011.
132
TABLE 9
Governmental
Percentage
of
Total
Activities
Personal
Business -type Activities
Capita
Income
Installment
General
(1)
State
Installment
Fiscal
Purchase
Obligation
Revenue
Revolving
Purchase
Year
Obligations
Bonds
Bonds
Loans
Obligations
2002
$ 4,997
$ 4,985
$ 12,960
$ 10,894
$ 5,843
2003
5,459
4,250
12,495
10,067
5,624
2004
5,840
3,525
12,000
9,240
8,033
2005
6,777
2,815
11,485
8,413
7,453
2006
6,832
2,125
10,950
7,586
6,793
2007
6,150
1,450
10,385
6,759
5,770
2008
7,821
790
53,810
5,932
5,061
2009
9,656
140
53,185
5,105
36,011
2010
(2) 8,209
-
51,320
4,278
36,291
2011
(2) 6,736
48,980
3,451
35,134
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 2009 and 2010 personal income not
available to calculate fiscal year 2010 and 2011.
(2) Personal income not available for 2010 and 2011.
132
TABLE 9
Percentage
of
Total
Per
Personal
Primary
Capita
Income
Government
(1)
(1)
$ 39,679
$ 1,430
1.04%
37,895
1,284
0.94
38,638
1,271
0.88
36,943
1,183
0.74
34,286
1,056
0.61
30,514
900
0.49
73,414
2,041
1.13
104,097
2,792
1.58
100,098
2,626
-
94,301
2,857
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)
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
2011
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 ACTIVITIES DEBT
ASOFJUNE30, 2011
(in thousands oJ'dollars)
Governmental Unit
Union County, overlapping debt
Total direct debt
Total direct and overlapping debt
100%
$ 450,285 $ 67,543
Notes: (1) Includes general obligation debt only.
(2) Determined by ratio of assessed value of property subject to taxation in Union County ($23,131,707,917)
and City of Monroe ($3,465,731,488).
Source: Union County Finance Department
134
TABLE M
Estimated
Estimated
Share of
Debt
Percentage
Direct and
Outstanding
Applicable
Overlapping
(1)
(2)
Debt
$ 450,285
15.0%
$ 67,543
100%
$ 450,285 $ 67,543
Notes: (1) Includes general obligation debt only.
(2) Determined by ratio of assessed value of property subject to taxation in Union County ($23,131,707,917)
and City of Monroe ($3,465,731,488).
Source: Union County Finance Department
134
TABLE M
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
41,871
$ 41,871
$3,465,731
277,258
41,871
$ 235,387
TABLE 12
CITY OF MONROE, NORTH CAROLINA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
fn thousands of dollars)
FISCAL YEAR
2002
2003
2004 2005 2006 2007
2008
2009
2010
2011
Debt limit (8% of assessed value)
$ 161,380
$ 165,377
$ 172,397 $ 190,088 $ 195,102 $ 205,710
$ 219,092 $
261,098
$ 271,919
$ 277,258
Total net debt applicable to limit
10,841
11,083
13,874 14,229 13,624 11,920
12,882
46,667
44,500
41,871
Legal debt margin
$ 150,539
$ 154,294
$ 158,523 $ 175,859 $ 181,478 $ 193,790
$ 206,210 $
214,431
$ 227,419
$ 235,387
Total net debt applicable to the limit
as a percentage of debt limit
6.72%
6.70%
8.05% 7.49% 6.98% 5.79%
5.88%
17.87%
16.37%
15.10%
Legal Debt Margin
Calculation for Fiscal Year 2011
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
41,871
$ 41,871
$3,465,731
277,258
41,871
$ 235,387
CITY OFMONROE, NORTH CAROLINA
PLEDGED - REVENUE COVERAGE
LAST TENFISCAL YEARS
(in thousands of'dollars)
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
TABLE 13
Less
Income
Operating
Nonoperating
Available for
Debt Service
Fiscal
Operating
Expenses
Operating
Revenues
Debt
(3)
Year
Revenues
(1)
Income
(2)
Service
Principal Interest
Coverage
2002
$ 56,257
$ 49,069
$ 7,188
$ 1,972
$ 9,160
$ 1,195 $
838
451
2003
61,482
52,302
9,180
2,212
11,392
1,200
791
572
2004
67,065
59,705
7,360
52
7,412
1,220
743
378
2005
68,492
60,408
8,084
1,585
9,669
1,225
692
504
2006
74,557
63,809
10,748
834
11,582
1,225
641
621
2007
72,718
61,629
11,088
3,343
14,431
1,240
588
789
2008
76,489
67,113
9,376
4,683
14,059
1,250
815
681
2009
74,807
66,727
8,081
2,884
10,964
1,275
2,456
294
2010
75,197
67,175
8,022
939
8,961
2,005
2,399
203
2011
80,045
66,284
13,761
277
14,038
2,772
2,461
268
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
TABLE 13
CITY OFMONROE, NORTH CAROLINA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN FISCAL YEARS
Note: (1) Personal income not available for 2010 and 2011.
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)
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
37,280
6,602,954
33,240
38,554
10.80
2010
(1) 38,120
-
-
39,366
9.50
2011
(1) 33,007
39,900
9.40
Note: (1) Personal income not available for 2010 and 2011.
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 OFMONROE, NORTH CAROLINA TABLE 15
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2002 2011
Percentage of
Percentage of Total City
Employees Total City Employment
Employer (1) Employment Employees (2)
Tyson Foods
ATI Allvac
Carolinas Medical Center -Union
Union County
Charlotte Pipe
Scott Safety
City of Monroe
Wal -Mart Stores, Inc.
Colfax Corporation (IMO Pump)
Goodrich Corporation
Total
Notes: (1) Data for 2002 not available.
(2) Percentage of total city employment based on North Carolina Employment Security Commission
labor force estimate of 14,648 as of June 30, 2011.
Sources: City of Monroe Economic Development Department
138
1,500
1,250
1,500
573
450
550
460
350
265
250
7,148
10.2%
8.5%
10.2%
3.9%
3.1%
3.8%
3.1%
2.4%
1.8%
CITY OF MONROE, NORTH CAROLINA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION
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
Solid Waste (3)
Aquatics and Fitness Center
Airport (1)
Total
TABLE 16
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
23
24
25
25
24
31
30
32
33
28
12
13
12
12
12
11
11
11
8
8
8
11
10
11
10
11
10
10
10
9
17
16
17
17
14
17
18
18
19
19
9
10
10
9
12
12
12
8
9
9
21
24
23
22
24
25
24
21
15
19
71
76
75
80
87
90
91
95
99
101
48
55
58
61
70
82
78
82
82
79
11
11
10
10
10
9
9
10
4
6
46
46
46
48
49
50
50
49
46
44
26
29
32
31
31
29
31
33
33
34
9
8
10
10
10
10
10
11
11
11
12
13
14
14
15
15
15
14
13
14
-
-
-
-
-
-
-
8
10
10
20
21
18
21
22
22
25
24
27
26
12
14
14
14
13
13
14
13
13
13
19
20
21
20
20
20
20
20
20
20
-
-
-
-
7
7
7
8
8
8
364
391
395
405
430
454
455
467
460
459
Note: (1) 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 (peration) had been managed
by a private enterprise under contract to the City.
(2) City of Monroe established a Stormwater utility program in 2009
(3) In 2011, a full time position was added to Solid Waste. Previously, the function was the responsibility of the Planning Department.
Source: City of Monroe payroll system.
139
CITY OF MONROE, NORTH CAROLINA TABLE 17
OPERATING INDICATORS BY FUNCTION
LAST TEN FISCAL YEARS
(i available or unless otherwise noted)
Function
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Transportation
Street reclamation (tons)
-
-
-
552
2,232
4,052
6,545
8,065
2,858
2,295
Street repair (tons)
2,702
3,592
2,511
2,131
1,057
1,765
2,100
1,219
595
456
Utility repair (tons)
342
422
552
368
119
314
296
321
527
780
Sidewalk repair (cubic yards concrete)
570
522
405
565
444
646
451
25
66
116
Pipe repair and replacement (linear feet)
657
433
768
247
956
440
911
2,016
2,132
2,526
Police
Physical arrests (calendar year)
4,623
4,745
4,309
4,443
4,335
4,596
4,094
3,468
3,204
-
Parking violations (calendar year)
260
348
2,091
1,263
3,707
3,686
3,918
3,408
3,510
Traffic violations (calendar year)
5,295
6,274
6,929
5,571
8,433
7,282
6,672
4,889
6,368
Fire
Calls for service (calendar year)
2,993
3,825
4,315
4,169
4,329
4,626
4,664
4,993
5,514
Fire code inspections (calendar year)
191
286
586
1,633
1,974
1,348
1,860
1,860
1,220
Civilian fire injuries (calendar year)
2
6
12
1
1
1
8
6
2
-
Building standards & code enforcement
Building permits issued
2,536
3,768
3,357
4,943
5,129
3,943
3,951
3,845
2,876
2,701
Building inspections
6,495
10,857
10,697
11,728
13,750
13,817
11,381
8,642
7,553
7,009
Code enforcement inspections
1,856
1,912
2,573
3,398
1,431
1,341
2,565
5,518
6,422
1,750
Environmental protection
Solid waste collected (annual tonnage)
37,041
38,914
40,787
42,660
44,533
44,917
42,352
35,928
34,155
31,968
Recyclables collected (annual tonnage)
722
730
739
747
756
973
925
707
788
748
Culture and recreation
Rounds of golf played (calendar year)
33,163
28,238
31,388
30,888
35,364
32,988
28,667
30,075
26,556
-
Aquatics and fitness center members
10,391
11,273
13,468
16,138
17,546
18,200
20,824
20,889
20,444
19,972
Youth athletic program participants (calendar year)
425
450
630
750
800
775
775
486
400
-
Water
Average daily production (millions of gallons per day)
6.9
6.7
6.9
6.3
6.6
6.0
5.7
5.5
5.8
6.0
Maximum daily production (millions of gallons per day)
10.0
9.1
9.7
8.9
9.2
10.0
8.7
8.1
9.1
9.1
Customers
9,857
9,989
10,158
10,532
10,919
11,405
11,534
11,436
11,462
11,478
Gallons Billed (in thousands)
2,091,900
2,032,900
1,987,100
2,018,600
2,149,000
2,096,600
1,973,800
1,796,500
1,748,800
1,803,119
Sewer
Average daily treatment (millions of gallons per day)
6.6
7.9
7.1
7.2
6.8
7.0
6.1
6.5
6.8
5.8
Customers
8,450
8,629
8,804
9,002
9,400
9,861
10,025
9,948
9,959
9,970
Gallons Billed (in thousands)
2,258,500
2,398,600
2,259,400
2,436,000
2,433,000
2,407,200
2,264,600
2,126,800
2,016,900
2,005,753
Electric
Sales (megawatt hours)
521,550
520,540
550,615
524,129
585,253
587,377
620,185
595,689
591,112
655,358
Customers
9,480
9,611
9,710
9,892
10,142
10,452
10,467
10,331
10,324
10,307
Natural gas
Sales/deliveries (thousand cubic feet)
230,201
275,125
268,447
257,326
261,484
279,446
275,840
264,370
273,909
308,852
Customers
8,389
8,711
8,932
9,167
9,533
10,113
10,340
10,287
10,216
10,233
Airport (1)
Fuel sales (thousands of gallons)
328
314
327
367
377
390
421
324
345
339
Based aircraft
77
70
65
76
84
103
111
114
95
96
Notes (1) 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 BYFUNCTION
LAST TEN FISCAL YEARS
(unless otherwise noted)
Function 2002 2003
2004
2005 2006
2007
2008
2009
Transportation
61
127
127
34
34
15,884
Municipal Boundary (square miles) 24.27 28.63
28.71
28.75
29.09
29.45
29.60
29.63
Streets (miles) 149 157
158
158
158
158
161
164
Sidewalks (miles) 42 43
43
44
44
45
50
54
Curb and gutter (miles) 107 107
109
110
110
111
119
124
Stormwater (miles) 27 28
29
29
29
30
32
33
Bridges (square feet) 15,468 15,468
15,468
15,468
15,468
15,884
15,884
15,884
Speed humps /cushions (each) 135 153
166
184
204
232
232
242
Public safety
Police stations 1 1
1
1
1
1
1
1
Patrol vehicles 76 76
79
85
89
89
89
92
Fire stations 4 5
5
5
5
5
5
5
Fire apparatus (line and reserve) 9 11
13
14
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
20
20
20
20
Swimming pools 2 2
3
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
0.5
Water and sewer
Water mains (miles) 272 276
279
289
292
293
291
291
Treatment capacity (millions of gallons per day) 11 11
11
11
11
11
11
11
Sewer
Sanitary sewers (miles) (3) 268 269
270
285
287
283
294
294
Treatment capacity (millions of gallons per day) 9.0 9.0
9.0
10.4
10.4
10.4
10.4
10.4
Electric
Substations (4) 7 7
7
7
7
7
8
9
Lines (miles per calendar year) 210 218
227
235
243
246
269
281
Natural gas
Lines (miles per calendar year) 348 365
373
392
414
430
578
594
Airport
Runway (feet) (6) 5,500 5,500
5,500
5,500
5,500
5,500
5,500
5,500
Hangars (square feet) (5) 42,659 42,659
42,659
42,659
53,134
53,134
77,292
85,865
Notes: (1) A new gymnasium was built at the J Ray Shute recreation center in 2010.
(2) In 2006, the City received a Parks and Recreation Trust Fund (PARTF) grant
for Phase
II development of the Parks 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.
(6) In 2011, an extension of runway 5 was completed.
Sources: Various City departments.
141
TABLE 18
2010
2011
29.63
29.63
166
166
61
61
127
127
34
34
15,884
15,884
279
286
1
1
92
92
5
5
14
14
552 552
1 1
8 8
4 4
8 8
10 10
20 20
3 3
1 1
1 1
0.5 0.5
291 291
11 11
295 295
10.4 10.4
9 9
293 -
641 -
5,500 7,000
85,865 85,865
CITY
OF
.�IONROE
a heritage of progress
ê÷ìíêè íî óîè÷êîûð ùíîèêíð íæ÷ê öóîûîùóûð ê÷ìíêèóîõ ûîø íî
ùíïìðóûîù÷ ûîø íèô÷ê ïûèè÷êé úûé÷ø íî ûî ûçøóè íö öóîûîùóûð
éèûè÷ï÷îèé ì÷êöíêï÷ø óî ûùùíêøûîù÷ åóèô
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Monroe, North Carolina
We have audited the accompanying financial statements of the governmental activities, the business-type activities,
the aggregate discretely presented component units, each major fund, and the aggregated remaining fund
information of the City of Monroe, North Carolina, as of and for the year ended June 30, 2011, which collectively
comprises the City of Monroe’s basic financial statements, and have issued our report thereon dated November 1,
2011. We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ issued by
the Comptroller General of the United States. The financial statements of the City of Monroe ABC Board and the
City of Monroe Tourism Development Authority were not audited in accordance with õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ
éÈÛÎØÛÊØÉ.
Internal Control Over Financial Reporting
Management of the City of Monroe is responsible for establishing and maintaining effective internal control over
financial reporting. In planning and performing our audit, we considered the City of Monroe’s internal control
over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion
on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
Monroe’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the City’s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial
reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider material weaknesses, as defined above.
However, we identified certain deficiencies in internal control over financial reporting described in the
accompanying schedule of findings and questioned costs that we consider to be significant deficiencies in internal
control over financial reporting. [11-1] A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to merit attention by those
charged with governance.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Monroe’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts
and grant agreements, noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed
143
instances of noncompliance or other matters that are required to be reported under õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ
and which are described in the accompanying schedule of findings and questioned costs as item [11-1].
The City’s response to the finding identified in our audit is described in the accompanying schedule of findings and
questioned costs. We did not audit the City’s response and accordingly, we express no opinion on it.
We noted certain matters that we reported to management of the City of Monroe, in a separate letter dated
November 1, 2011.
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 1, 2011
Monroe, North Carolina
144
ê÷ìíêè íî ùíïìðóûîù÷ åóèô ê÷ëçóê÷ï÷îèé ûììðóùûúð÷ èí ÷ûùô ïûòíê ö÷ø÷êûð
ìêíõêûï ûîø óîè÷êîûð ùíîèêíð íæ÷ê ùíïìðóûîù÷ óî ûùùíêøûîù÷ åóèô
íïú ùóêùçðûê û ûîø èô÷ éèûè÷ éóîõð÷ ûçøóè óïìð÷ï÷îèûèóíî ûùè
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 OMB ùÓÊÙÇÐÛÊ û ùÍÏÌÐÓÛÎÙ× éÇÌÌÐ×Ï×ÎÈ and the ûÇØÓÈ ïÛÎÇÛÐ ÖÍÊ õÍÆ×ÊÎÏ×ÎÈÛÐ ûÇØÓÈÍÊÉ
ÓÎ îÍÊÈÔ ùÛÊÍÐÓÎÛ, 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, 2011. The City of Monroe’s
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, regulations, contracts and grants
applicable to each of its major federal 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 õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ, issued
by the Comptroller General of the United States; and OMB Circular A-133, ûÇØÓÈÉ ÍÖ éÈÛÈ×É ðÍÙÛÐ õÍÆ×ÊÎÏ×ÎÈÉ,
ÛÎØ îÍÎìÊÍÖÓÈ íÊÕÛÎÓÂÛÈÓÍÎÉ, 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 a direct and material effect on a major federal 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 federal programs for the year ended June 30,
2011.
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 federal programs. In
planning and performing our audit, we considered the City of Monroe’s internal control over compliance with
requirements that could have a direct and material effect on a major federal 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 in accordance with OMB Circular A-133, 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 federal program on a timely basis.
A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in
145
internal control over compliance, such that there is a reasonable possibility that material noncompliance with a
type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely
basis.
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, 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 1, 2011
Monroe, North Carolina
146
ê÷ìíêè íî ùíïìðóûîù÷åóèô ê÷ëçóê÷ï÷îèé ûììðóùûúð÷ èí ÷ûùô ïûòíê éèûè÷
ìêíõêûï ûîø óîè÷êîûð ùíîèêíð íæ÷ê ùíïìðóûîù÷ óî ûùùíêøûîù÷ åóèô
ûììðóùûúð÷ é÷ùèóíîé íö íïú ùóêùçðûê û ûîø èô÷ éèûè÷ éóîõð÷ ûçøóè
óïìð÷ï÷îèûèóíî ûùè
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 ûÇØÓÈ ïÛÎÇÛÐ ÖÍÊ õÍÆ×ÊÎÏ×ÎÈÛÐ ûÇØÓÈÍÊÉ ÓÎ îÍÊÈÔ ùÛÊÍÐÓÎÛ, 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, 2011. 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 õÍÆ×ÊÎÏ×ÎÈ ûÇØÓÈÓÎÕ éÈÛÎØÛÊØÉ, issued
by the Comptroller General of the United States; and applicable sections of OMB Circular A-133, as described in
the ûÇØÓÈ ïÛÎÇÛÐ ÖÍÊ õÍÆ×ÊÎÏ×ÎÈÛÐ ûÇØÓÈÍÊÉ ÓÎ îÍÊÈÔ ùÛÊÍÐÓÎÛ, 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 of 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,
2011.
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
147
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.
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 1, 2011
Monroe, North Carolina
148
SCHEDULE 25
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Fiscal Year Ended June 30, 2011
é×ÙÈÓÍÎ ó éÇÏÏÛÊà ÍÖ ûÇØÓÈÍÊɪ ê×ÉÇÐÈÉ
Financial Statements
T ype of auditors’ report issued: Unqualified
Internal control over financial reporting:
yes X no
Material weakness(es) identified?
Significant Deficiency(s) identified that
are not considered to be material
Xyes none reported
weaknesses
Noncompliance material to financial
statements noted Xyes no
Federal Awards
Internal control over major federal programs:
yes X no
Material weakness(es) identified?
Significant Deficiency(s) identified that
are not considered to be material
yes Xnone reported
weaknesses
Type of auditors’ report issued on compliance for major federal programs: Unqualified.
Any audit findings disclosed that are required
to be reported in accordance with Section
510(a) of Circular A-133 yes Xno
Identification of major federal programs:
CFDA NumberName of Federal Program
20.106 Airport Improvement Program
14.251 Economic Development Initiative - Special Project
16.710 COPS Technology Grant
Dollar threshold used to distinguish between
Type A and Type B Programs $300,000
Auditee qualified as low-risk auditee? Xyes no
State Awards
Internal control over major State programs:
yes X no
Material weakness(es) identified?
Significant Deficiency(s) identified that
are not considered to be material
yes Xnone reported
weaknesses
149
SCHEDULE 25,
Continued
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Fiscal Year Ended June 30, 2011
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 Xno
Identification of major State programs:
Program Name
Powell Bill
é×ÙÈÓÍÎ óó öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈ öÓÎØÓÎÕÉ
öÓÎØÓÎÕ
SIGNIFICANT DEFICIENCY
MATERIAL NONCOMPLIANCE
a) states that all moneys received and expended by a local government or public
C riteria: G.S. 159-8(
authority should be included in the budget ordinance.
C ondition: The City of Monroe expended $166,844 more for the Airport Fund than appropriated in the
annual budget ordinance.
Effect: Moneys were spent that had not been appropriated.
C ause: The City expended funds that had not been appropriated for in the budget ordinance prior to
expending the funds.
are expected to exceed
R e commendation: Budget amendments should be adopted when amounts
estimated expenditures in the budget ordinance prior to expending the funds.
Views of responsible officials and planned corrective actions: The City agrees with this finding. Budget
amendments will be adopted prior to making expenditures that exceed budgeted amounts.
é×ÙÈÓÍÎ óóó ö×Ø×ÊÛÐ ûÅÛÊØ öÓÎØÓÎÕÉ ÛÎØ ëÇ×ÉÈÓÍÎ×Ø ùÍÉÈÉ
None reported.
é×ÙÈÓÍÎ óæ éÈÛÈ× ûÅÛÊØÉ öÓÎØÓÎÕÉ ÛÎØ ëÇ×ÉÈÓÍÎ×Ø ùÍÉÈÉ
None reported.
150
SCHEDULE 26
CITY OF MONROE, NORTH CAROLINA
CORRECTIVE ACTION PLAN
For the Fiscal Year Ended June 30, 2011
é×ÙÈÓÍÎ óó öÓÎÛÎÙÓÛÐ éÈÛÈ×Ï×ÎÈ öÓÎØÓÎÕÉ
öÓÎØÓÎÕ
Name of contact person: Greg Demko, Director of Finance
Corrective Action: Management at the Airport will review a budget-to-actual report
prepared by the finance officer on a monthly basis. Budget
amendments will be made as necessary.
Proposed Completion Date: The City will implement the above procedure immediately.
é×ÙÈÓÍÎ óóó ö×Ø×ÊÛÐ ûÅÛÊØ öÓÎØÓÎÕÉ ÛÎØ ëÇ×ÉÈÓÍÎ×Ø ùÍÉÈÉ
None reported.
é×ÙÈÓÍÎ óæ éÈÛÈ× ûÅÛÊØÉ öÓÎØÓÎÕÉ ÛÎØ ëÇ×ÉÈÓÍÎ×Ø ùÍÉÈÉ
None reported.
151
SCHEDULE 27
CITY OF MONROE, NORTH CAROLINA
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
For the Fiscal Year Ended June 30, 2011
öÓÎØÓÎÕ îÍÎ× Ê×ÌÍÊÈ×Ø
152
SCHEDULE 28
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the Fiscal Year Ended June 30, 2011
ö×Ø×ÊÛÐö×Ø×ÊÛÐ øÓÊ×ÙÈ
õÊÛÎÈÍÊ
ìÛÉÉèÔÊÍÇÕÔùöøû ÛÎØ ìÛÉÉèÔÊÍÇÕÔéÈÛÈ×ðÍÙÛÐ
ÊÛÎÈÍÊìÊÍÕÊÛÏ èÈÐ×îÇÏÚ×÷ÄÌ×ÎØÈÇÊ×É÷ÄÌ×ÎØÈÇÊ×É÷ÄÌ×ÎØÈÇÊ×É
õ
ÓÊÓÓÓ
Federal Grants:
Cash Programs:
U.S. Department of Justice:
Direct Programs:
Drug Enforcement Administration16.579$ 180,540$ 18,454$ 8,900
COPS Hiring Recovery Program16.710 106,007 - -
COPS Technology Grant16.710 238,945 - -
ARRA - Recovery Act Edward Byrne
Memorial Justice Assistance Grant16.808 21,414 - -
U.S. Department of Homeland Security:
Direct Programs:
Staffing for Adequate Fire & Emergency
Response (SAFER)97.08373,324 - 423,637
Federal Aviation Administration:
Airport Improvement Program20.106 2,150,000 - 238,889
N.C. Department of Transportation:
Passed Through NC Department of Transportation:
Natural Corridor Infrastructure Improvement Program20.205 -22,560 5,940
U.S. Department of Housing and
Urban Development:
Direct Programs
Economic Development Initiative
Special Project14.251487,210- -
Total Assistance - Federal Programs3,280,000 18,454 677,366
State Grants:
Cash Assistance:
Transportaton:
N.C. Department o
fi
Powell bill 1,000,949- -
N.C. Department of Commerce:
The One North Carolina Fund - 40,000 -
N.C. Department of Community Assistance:
Scattered Site Housing - 95,221 -
N.C. Department of Health and Human Services:
Aging Gran-4,081 1,360
t
Total Assistance - State Programs- 1,140,251 1,360
Total Federal and State Assistance 3,280,000$ 1,158,705$ 678,726$
-Continued
153
SCHEDULE 28,
Continued
CITY OF MONROE, NORTH CAROLINA
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
For the Fiscal Year Ended June 30, 2011
Notes to the Schedule of Expenditures of Federal and State Financial Awards:
1.
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.
154