HomeMy WebLinkAbout2006
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TOWN OF SOUTH OLD
AUDIT REPORTS
December 31, 2006
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I FINANCIAL SECTION I
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Independent Auditors' Report... ................. ............. ................................................................................... 1-2
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REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis.................................................................... ............... 3-11
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I BASIC FINANCIAL STATEMENTS I
Government-Wide Financial Statements
Statement of Net Assets ......................................................................................................................... 12
Statement of Activities.................. ............. ................... ................................................ ........................... 13
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Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet and Reconciliation of the Governmental Funds Balance Sheet to
The Statement of Net Assets................ ................ ......... ........... ........................ .............. 14-15
Statement of Revenues, Expenditures, and Changes in Fund Balances and
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures,
And Changes in Fund Balances to the Statement of Activities................................... ............. 16-17
Fiduciary Fund Financial Statements
Statement of Fiduciary Net Assets............................. ............................ ................................... 18
Notes to Financial Statements................................................................................................................... 19-34
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REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANGEMENT DISCUSSION AND ANALYSIS
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Schedule of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual
General Fund.. ...__............... ...... ................................... ........... ............................. .......
Highway Fund....................................................................................................... .......
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I OTHER SUPPLEMENTARY INFORMATION
COMBINING FUND STATEMENTS:
Non-major Governmental Funds
Combining Balance Sheet..... .................. ......... ...... ........................ ..... ................ ..........
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances....................
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DISCRETL Y PRESENTED COMPONENT UNITS
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Discretely Presented Component Units:
Combining Statement of Net Assets....................................................................................................... 39
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Combining Statement of Activities ..........................................................................................................
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CEFi:TIFIED PUBLIC ACCOUNTANTS, BUSINESS ADVISORS AND CONSULTANTS
25 Suffolk Court, Hauppauge, New York 11788
631.434.9500 . Fax 631.434.9518
lVWl'V. avz. com
INDEPENDENT AUDITORS' REPORT
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Honorable Supervisor and Town Board
Town of Southold
Southold, New York
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discretely presented component units, each major fund, and the aggregate remaining fund information of
the Town of Southold, New York, as of December 31, 2006, and for the year then ended, which
collectively comprise the Town's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the Town's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
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Except as discussed in the following paragraph, we conducted our audit in accordance with auditing
standards generally accepted in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. An audit also includes assessing the accounting principles
. used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
The financial statements supporting the financial activities of the Town of Southold's discretely presented
component units with the exception of one, the Fishers Island Ferry District, were not audited as of the
report date, nor were we able to satisfy ourselves as to those financial activities by other auditing
. procedures. Those financial activities represent approximately 34% of the net assets of the discretely
presented component units. The financial statements of the Fishers Island Ferry District were audited by
other auditors whose report thereon have been furnished to us and in our opinion, insofar as it relates to
the amounts included for that one component unit, is based solely on the reports of the other auditors.
In our opinion, except for the effects of such adjustments if any as might have been determined to be
. necessary had the unaudited component units financial statements been audited and based on our audit
and the reports of other auditors, the financial statements referred to above present fairly, in all material
respects, the financial position of the Town of Southold, New York, as of December 31,2006, and the
results of its operations for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
. The Management's Discussion and Analysis and the budgetary information are not a required part of the
basic financial statements but are supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
supplementary information. However, we did not audit the information and express no opinion on it.
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ALBRECHT, ViGGIANO, ZURECK & COMPANY, P.C.
INDEF'ENDENT MEMBEA OF BKR INTERNATIONAL
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Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise the Town of Southold, New York's basic financial statements. The combining and
individual fund financial statements are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The combining and individual fund financial statements
has been subjected to the auditing procedures applied in the audit of the basic financial statements of the
Town of Southold, New York, and, in our opinion, is fairly presented in all material respects in relation to
the basic financial statements taken as a whole.
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Hauppauge, New York
September 11, 2007
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REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
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The following is a discussion and analysis of the Town of Southold's financial performance, providing an overview
of the Town's financial activITies for the year ended December 31, 2006. Use this section in conjunction with the
Town's basic financial statements.
USING THIS ANNUAL REPORT
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This annual report consists of a series of financial statements. The Statement of Net Assets and the
Statement of Activities provide information about the activities of the Town as a whole and present a longer-
term view of the Town's finances. For governmental activities, these statements tell how these services were
financed in the short term as well as what remains for future spending. Fund financial statements also report
the Town's operations in more detail than the government-wide statements by providing information about the
Town's most significant funds. The remaining statements provide financial information about activities for
which the Town acts solely as a trustee agent for the benefit of those outside of the government.
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Reportin!! the Town as a Whole
The Statement of Net Assets and the Statement of Activities
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One of the most important questions asked about the Town's finances is, "Is the Town as a whole better off or
worse off as a result of the year's activities?" The Statement of Net Assets and the Statement of Activities
report information about the Town as a whole and about its activities in a way that helps answer this question.
These statements include all assets and liabilities using the accrual basis of accounting, which is similar to the
accounting used by most private-sector companies. The Statement of Activities is significantly different than a
typical Statement of Revenues, Expenses, and Changes in Fund Balance. You will notice that expenses are
listed in the first column with revenues from that particular program reported to the right. The result is a net
(expense)/revenue. The reason for this kind of format is to highlight the relative financial burden of each of the
functions on the Town's taxpayers. It also identifies how much each function draws from the general revenues
or if it is self-financing through fees and grants. All of the current year's revenues and expenses are taken into
account regardless of when cash is received or paid.
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These two statements report the Town's net assets and their respective changes. You can think of the Town's
net assets-the difference between assets and liabilities-as one way to measure the Town's financial health,
or financial position. Over time, increases or decreases in the Town's net assets are one indicator of whether
its financial health is improving or deteriorating. You will need to consider other non-financial factors, however,
such as changes in the Town's property tax base and the condition of the Town's buildings, roads, drainage
and other assets to assess the overall health of the Town.
In the Statement of Net Assets and the Statement of Activities, we divide the Town into two kinds of activities:
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. Governmental activities - The Town's basic services are reported here, including: general government
support; public safety; public health; transportation; economic assistance and opportunity; culture and
recreation and home and community services. Property taxes, sales taxes, franchise fees, fines, and
state and federal grants finance these activities. The Town also charges fees to customers to help it
cover the cost of certain services it provides.
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. Component units - The Town includes seven separate legal entities in its report (one ferry district, one
sanitation district, one mosquito district and four park districts). Although legally separate, these
"component units" are important because the Town is financially accountable for them. Complete
financial statements of the individual component units can be obtained from their respective
administrative offices (Note A).
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
Reoortina the Town's Most Sianificant Funds
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Fund Financial Statements
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The fund financial statements provide detailed information about the most significant funds-not the Town as a
whole. Some funds are required to be established by state law and by bond covenants. However, the Town
establishes many other funds to help it control and manage sources of funding and spending related to specific
activities.
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The Town's basic services are reported in governmental funds, which focus on how money flows into and out
of those funds and the balances left at year-end that are available for spending. These funds are reported
using an accounting method called modified accrual accounting, which measures cash and all other financial
assets that can readily be converted to cash. The governmental fund statements provide a detailed short-term
view of the Town's general government operations and the basic services it provides. Governmental fund
information helps you determine whether there are more or fewer financial resources that can be spent in the
near future to finance the Town's programs. We describe the relationship (or differences) between
governmental activities (reported in the Statement of Net Assets and the Statement of Activities) and
governmental funds in a reconciliation that follows these fund financial statements.
The Town as Trustee
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Reoortina the Town's Fiduciarv Resoonsibilities
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All of the Town's fiduciary activities are reported in a separate Statement of Fiduciary Net Assets. We exclude
these activities from the Town's other financial statements because the Town cannot use these assets to
finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used
for their intended purposes.
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE
Our analysis below focuses on the net assets and changes in net assets of the Town's governmental activities.
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Condensed Statement of Net Assets
Governmental Activities
as of December 31, 2006 and 2005
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2006 2005
Assets
Current and other assets $ 23,769,534 $ 26,265,665
Capital assets 100,557,312 90,294,079
Total assets 124,326,846 116,559,744
Liabilities
Current and other liabilities 15,552,211 16,289,370
Long-term liabilities 14,773,434 14,916,051
Total liabilities 30,325,645 31,205,421
Net assets
Invested in capital assets,
net of related debt 92,063,214 81,044,981
Unrestricted 1,937,987 4,309,342
Total net assets $ 94,001,201 $ 85,354,323
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
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FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
Total assets in the Town as of December 31, 2006 were $124.3 million, an increase of 7.8 million. Total
liabilities as of December 31, 2006 were $30.3 million, which represents a decrease of $800,000 from
December 31, 2005. This results in a net asset balance of $94 million, an increase of $8.6 million. Of the
Town's net asset balance $92 million were invested in capital assets, net of related debt; while $1.9 million was
unrestricted.
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Changes in Net Assets
Governmental Activities
for the years ended December 31, 2006 and 2005
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2006 2005
Program Revenues
Charges for services $ 9,231,396 $ 10,723,686
Operating grants and contributions 713,597 859,484
Capital grants and contributions 4,834,716 3,502,247
14,779,709 15,085,417
General Revenues
Real property taxes 21,709,445 20,795,041
Other real property tax items 102,986 80,369
Non-property tax items 846,016 628,857
Interest earnings 1,233,122 766,413
State aid - unrestricted 2,610,189 2,527,110
Other 463,671 709,352
26,965,429 25,507,142
Total Revenues 41,745,138 40,592,559
Program Expenses
General government support 6,843,661 6,621,408
Public safety 11,421,283 11,342,991
Public health 43,499 43,559
Transportation 7,298,698 6,627,876
Economic assistance and opportunity 1,354,610 1,208,467
Culture and recreation 713,164 356,167
Home and community services 4,912,384 4,961,051
Interest on debt 553,713 501,452
Total Expenses 33,141,012 31,662,971
Increase in Net Assets $ 8,604,126 $ 8,929,588
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
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Net Cost of Services
Governmental Activities
for the year ended December 31, 2006
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General government support
Public safety
Public health
Transportation
Economic assistance and opportunity
Culture and recreation
Home and community services
Interest on debt
Total Cost
of Services
$ 6,843,661
11,421,283
43,499
7,298,698
1,354,610
713,164
4,912,384
553,713
$ 33,141,012
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Net Cost of Services
Governmental Activities
for the year ended December 31, 2006
Total Cost Program Net Cost
of Services Revenues of Services
General government support $ 6,843,661 $ 319,565 $ 6,524,096
Public safety 11,421,283 674,617 10,746,666
Public health 43,499 10,185 33,314
Transportation 7,298,698 340,659 6,958,039
Economic assistance and opportunity 1,354,610 415,263 939,347
Culture and recreation 713,164 208,376 504,788
Home and community services 4,912,384 12,811,044 (7,898,660)
Interest on debt 553,713 553,713
$ 33,141,012 $ 14,779,709 $18,361,303
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The cost of all governmental activities this year was $33.1 million. The net cost of these services, however,
after subsidized by program revenues including charges for services and program grants, was $18.4 million.
The Town's change in net assets after general revenues of $27 million was an increase of $8.6 million.
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
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FINANCIAL ANALYSIS OF THE TOWN AS A WHOLE (continued)
$14,000,000
Expenses and Program Revenues
Governmental Activities
$12,000,000
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$10,000,000
$8,000,000
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$6,000,000
$4,000,000
$2,000,000
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. Expenses
. Program Revenues
General
government
support
Public safety Public health Transportation Economic Culture and
assislanceand recreation
opportunity
Home and Interest on debt
community
services
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Capital grants
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Operating contributions
grants and 12%
contributions
2%
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Other
general
revenues
6%
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State aid -
unrestricted
6%
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Real
property
taxes
52%
Revenue by Source
Governmental Activities
For the year ended December 31, 2006
Real property taxes
State aid - unrestricted
Charges for services
Other general revenues
Operating grants and contributions
Capital grants and contributions
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$ 21,709,445
2,610,189
9,231,396
2,645,795
713,597
4,834,716
$ 41,745,138
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. TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31,2006
CAPITAL ASSET AND DEBT ADMINISTRATION
. Capital Assets
As of December 31, 2006 the Town had $100.5 million in net capital assets including land, buildings,
improvements, machinery and equipment, and infrastructure. The Town's component units had $8.4 million in
net capital assets including land, buildings, improvements, machinery and equipment, and sewer mains.
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Capital Assets at December 31,
Primary aovemment 2006 2005
Land $ 58,341,517 $ 47,772,278
. Construction in progress 220,114 1,608,081
Buildings 8,307,223 4,574,513
Improvements other than buildings 13,618,159 13,498,954
Machinery and equipment 9,916,143 9,522,815
Infrastructure 70,694,655 70,038,525
. Total capital assets 161,097,811 147,015,166
Less accumulated depreciation 60,540,499 56,721,087
Primary government - Total net capital assets $ 100,557,312 $ 90,294,079
Component units
. Land $ 2,213,759 $ 2,213,759
Construction in progress 12,947,081 13,174,567
Buildings 3,566,885 3,540,111
Improvements other than buildings 3,220,732 2,575,589
Machinery and equipment 3,320,899 3,200,728
. Infrastructure 2,145,280 2,138,386
Total capital assets 27,414,636 26,843,140
Less accumulated depreciation 6,074,572 5,639,830
Component units - Total net capital assets $ 21,340,064 $ 21,203,310
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
CAPITAL ASSET AND DEBT ADMINISTRATION (continued)
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Caoital Assets (continued)
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The capital program is a long range financing guide and not a definitive plan. Each appropriation must be
authorized by Town Board resolution before being undertaken. Each may be financed by issuance of general
obligation bonds, which, at times, are preceded by issuance of bond anticipation notes for various periods of
time depending on the probable usefulness of the purpose of expenditure. The following sets forth a summary
of the Town's capital program.
(Dollars in thousands):
Eauioment
2007
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General Fund
Highway Fund
Special Districts
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540,467
488,000
305.000
1.333.467
Total Equipment
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Imorovements
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General Fund
Highway Fund
Special Districts
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2,786,961
300,000
160.000
3.246.961
Total Improvements
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4 580 427
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Total Program
Additional information on the Town's capital assets can be found in Note C.3 to the financial statements.
Debt Administration
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The Town of Southold's credit rating from Moody's Investors Services was A1 as of December 31, 2006.
Subsequent tothoa year end the Town's credit rating was upgraded to Aa2.
Debt Limit - The Town has the power to contract indebtedness for any Town purpose so long as the principal
amount thereof, subject to certain limited exceptions, shall not exceed seven percent of the average full
valuation of taxable real estate of the Town, and subject to certain enumerated exclusions and deductions
such as water and certain sewer facilities and cash or appropriations for current debt service.
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The constitutional method for determining full valuation is calculated by taking the assessed valuation of
taxable real estate as shown upon the latest completed assessment roll and dividing the same by the
equalization rate as determined by the State Board of Equalization and Assessment. The State Legislature is
required to prescribe the manner by which such ratio shall be determined. Average full valuation is
determined by taking the sum of the full valuation of the last completed assessment roll and the four preceding
assessment rolls and dividing such sum by five. Percentage of debt contracting power exhausted at December
31,2006 was 3.35%.
At December 31, 2006, the Town had approximately $8.5 million in long term general obligation bonds
outstanding, of which $8 million was for general Town purposes. Also outstanding at year-end were bond
anticipation notes in the amount of $7.7 million of which $6 million was for general Town purposes.
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Additional information on the Town's debt activity can be found in Note C.4 to the financial statements.
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TOWN OF SOUTHOlD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2006
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
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ProoertvTax
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The Town has adopted a budget for the 2006 fiscal year which factors in inflation and other adjustments to
revenues and expenditures as well as prior year positive and negative fund balances. The 2006 budget
includes. an overall increase in real property tax revenues from the prior year of approximately 4.26% for the
general ToWl'l governmental activities.
State Aid and local Assistance
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The Town receives financial assistance from New York State and from Suffolk County. During 2006, financial
assistance included state aid consisting of mortgage tax of $2.6 million, consolidated highway aid of $276
thousand, and community preservation aid of approximately $2.475 million. State aid per capita was $90.4
thousand and County local government assistance was $296.4 thousand. Additionally, if the State should not
adopt its budget in a timely manner, municipalities and school districts in the State, including the Town, may
be affected by a delay in the payment of state aid. The State is not constitutionally obligated to maintain or
continue state aid to the Town. The Town's 2006 budget included similar amounts for this financial assistance.
Retirement Svstem
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In 2003 the Town of Southold adopted the New York State Early Retirement Incentive Program as authorized
by Chapter 69 of the Laws. of 2002. The option to retire early ran through December 31,2002. The eligibility
varied based on tier, age and years of service, but all options required that the employees be at least fifty (50)
years of age and being vested in the New York State Retirement System. The Town funds it retirement billing
currently.
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As part of its contractual agreements with the unions, the Town of Southold also offers fully paid health
insurance benefits (but not welfare benefits) for the retiree and their present spouse until death of the retiree.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
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This financial report is desi~ned to provide our citizens, taxpayers, customers, and creditors with a general
overview of the Town's finances and to show the Town's accountability for the money it receives. If you have
questions about this report or need additional financial information, contact the Town of Southold, Office of the
Town Comptroller, Southold, New York.
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BASIC FINANCIAL
STATEMENTS
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TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENT
STATEMENT OF NET ASSETS
December 31, 2006
. Primary
Governmental Component
Activities Units
ASSETS
Current Assets:
. Cash and investments $ 19,073,290 $ 1,236.451
Accounts receivable, net of allowances 205,234 15,167
Due from fiduciary funds
Due from other governments 2,541,813
Due from primary government 360,178
State and federal aid receivables 801,197 237,056
. Prepaid charges 997,151 39,171
Inventory of material and supplies 2,099
Total Current Assets 23,620,784 1,888,023
Non-Current Assets:
Deferred charges, net of accumulated amortization 148,750
. Non-depreciable capital assets 58,561,631 15,160,840
Depreciable capital assets, net of depreciation 41,995,681 6,179,224
Total Non-Current Assets 100,706,062 21,340,064
Total Assets 124,326,846 23,228,087
LIABILITIES
. Current Liabilities:
Accounts payable and accrued liabilities 1,320,029 369,893
Accrued interest payable 261,058 69,176
Bond anticipation notes payable 7,729,000 2,185,000
Due to other governments 243,292 2.431
Due to fiduciary funds 12,601
. Unearned revenue 5,147,779 366,282
Non-current liabilities due within one year
General obligation bonds payable 779,098 200,000
Due to Employees Retirement System 48,804
Claims and judgments payable 50,000
. Estimated liability for landfill closure
and postclosure care costs 10,550
Total Current Liabilities 15,552,211 3,242,782
Non-Current Liabilities:
General obligation bonds payable 7,715,000 2,655,000
Compensated absences 6.475,661
. Claims and judgments payable 150,000
Estimated liability for landfill closure
and postclosure care costs 582,773
Total Non-Current Liabilities 14,773.434 2,805,000
Total Liabilities 30,325,645 6,047,782
. NET ASSETS
Investment in capital assets, net of related debt 92,063,214 15,579,033
Unrestricted 1,937,987 1,601,272
Total Net Assets $ 94,001,201 $ 17,180,305
. See notes to the financial statements
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TOWN OF SOUTH OLD
GOVERNMENT-WIDE FINANCIAL STATEMENT
STATEMENT OF ACTIVITIES
Year ended December 31, 2006
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Net Expenses (Revenues) and
Program Revenues Change in Net Assets
Operating Capital
Charges for Grants and Grants and Primary Component
Function/Program Expenses Services Contributions Contributions Government Units
. PRIMARY GOVERNMENT
Government Activities:
General government support $ 6,843,661 $ 229,092 $ 90,473 $ 6,524,096
Public safety 11,421,283 534,811 139,806 10,746,666
Public health 43,499 10,185 33,314
Transportation 7,298,698 9,484 28,838 $ 302,337 6,958,039
. Economic assistance and opportunity 1,354,610 169,983 245,280 939,347
Culture and recreation 713,164 208,376 504,788
Home and community services 4,912,384 8,079,650 199,015 4,532,379 (7,898,660)
Interest on debt 553,713 553,713
Total Primary Government $ 33,141,012 $ 9,231,396 $ 713,597 $ 4,834,716 $ 18,361,303
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COMPONENT UNITS
General government support $ 130,910 $ 130,910
Public health 86,977 86,977
Transportation 2,751,284 $ 2,013,785 $ 810,646 (73,147)
. Culture and recreation 837,563 837,563
Home and community services 473,074 32,938 440,136
Interest on debt 250,382 250,382
Total Component Units $ 4,530,190 $ 2,046,723 $ 0 $ 810,646 $ 1,672,821
. GENERAL REVENUES
Real property taxes 21,709,445 1,949,512
Other real property tax items 102,986 1,124
Non-property tax items 846,016
Interest earnings 1,233,122 155,484
State aid 2,610,189
. Other 463,671 42,684
Total General Revenues 26,965,429 2,148,804
Change in Net Assets 8,604,126 475,983
. Net Assets at Beginning of Year 85,397,075 16,704,322
Net Assets at End of Year $ 94,001,201 $ 17,180,305
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See notes to financial statements.
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TOWN OF SOUTHOLD
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31,2006
MAJOR GOVERNMENTAL FUNDS Non-Major
Capital Governmental
. General Highway Projects Funds Totals
ASSETS
Cash and Investments $ 8,339,472 $ 1,574,794 $ 7,806,802 $ 1,352,222 $ 19,073,290
Accounts Receivable 22,346 60 182,828 205,234
Due from Other Funds 190,208 461,241 234,970 475,547 1,361,966
Due from Trust Funds
State and Federal Aid Receivable 110,153 276,337 325,950 88,757 801,197
. Due from other Governments 2,075,955 465,858 2,541,813
Supply Inventory 2,099 2,099
Prepaids 426,200 57,894 53,559 537,653
Total Assets $ 11,166,433 $ 2,370,266 $ 8,833,640 $ 2,152,913 $ 24,523,252
LIABILITIES AND FUND BALANCES
LIABILITIES
. Accounts Payable $ 701,018 $ 101,474 $ 189,921 $ 320,656 $ 1,313,069
Retained Percentages 6,960 6,960
Bond Anticipation Notes Payable 7,729,000 7,729,000
Due to other Funds 1,205,516 49,290 106,987 173 1,361,966
Due to Trust Funds 12,601 12,601
Due to Other Governments 243,292 243,292
Deferred Revenue 3,619,307 900,180 628,292 5,147,779
. Total Liabilities 5,781,734 1,050,944 8,032,868 949,121 15,814,667
FUND BALANCE
Fund Balances - Reserved:
Encumbrances 13,284 129,285 142,569
Supply Inventory 2,099 2,099
Prepaids 426,200 25,599 451,799
Insurance Claims 513,329 513,329
. Fund Balance - Unreserved: . 16,900 16,900
Designated - Ensuing Year's Budget 2,185,000 486,500 470,228 3,141,728
Undesignated 2,244,787 686,637 800,772 707,965 4,440,161
Total Fund Equity 5,364,699 1,319,322 800,772 1,203,792 8,708,585
Total Liabilities and Fund Equity $ 11,166,433 $ 2,370,266 $ 8,833,640 $ 2,152,913 $ 24,523,252
.
.
.
.
See notes to the financial statements.
-14-
.
.
TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET ASSETS
December 31. 2006
Total Fund Balances - Governmental Funds $ 8.708.585
.
Amounts reported for governmental activities in the
Statement of Net Assets are different because:
Capital assets less accumulated depreciation are
. included in the Statement of Net Assets:
Capital assets - non-depreciable 58.561.631
Capital assets - depreciable 102.536.180
Accumulated depreciation (60.540,499)
. 100.557.312
Long-term liabilities applicable to the Town's
governmental activities are not due and payable
in the current period and accordingly are not
. reported in the funds. However these liabilities
are included in the Statement of Net Assets:
General obligation bonds payable (8,494,098)
Due to Employees Retirement System (48,804)
Compensated absences (6,475,661 )
. Estimated liability for landfill closure
and postclosure care costs (593.323)
(15.611,886)
Prepaid items included in the Statement of Net Assets 459,498
. Deferred charges. included in the Statement of Net Assets 148,750
Interest payable applicable to the Town's governmental
activities are not due and payable in the current period
and accordingly are not reported in the funds. However
. these liabilities are included in the Statement of Net Assets. (261,058)
Net Assets of Governmental Activities $ 94.001,201
.
.
See notes to financial statements.
-15-
.
TOWN OF SOUTHOLD
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended December 31, 2006
.
MAJOR GOVERNMENTAL FUNDS Non-Major
. Capital Governmental
General Highway Projects Funds Totals
REVENUES
Real Property Taxes $14,872,736 $4,095,347 $2,741,362 $ 21,709,445
Other Real Property Tax Items 85,808 12,689 4,489 102,986
Non-Property Tax Items 616,670 229,346 846,016
Departmental Income 477,849 2,275,935 2,753,784
. Intergovernmental Charges 316,049 $ 5,824,319 1,809 6,142,177
Use of Money and Property 684,166 140,578 456,713 95,272 1,376,729
licenses and Permits 258,794 9,484 163,780 432,058
Fines and Forfeitures 171,763 171,763
Sale of Property and Compensation for Loss 95,057 7,521 135,662 238,240
Miscellaneous Local Sources 146,260 151,000 6,652 303,912
State Aid 2,725,177 276,337 3,980,074 127,278 7,108,866
. Federal Aid 228,491 325,950 41,163 595,604
Total Revenues 20,678,820 4,541,956 10,738,056 5,822,748 41,781,580
EXPENDITURES
Current
General Government Support 5,177,745 103,654 5,281,399
Public Safety 7,371,280 869,154 8,240,434
Public Health 32,988 7,104 40,092
. Transportation 452,050 3,028,076 3,480,126
Economic Assistance and Opportunity 949.740 949,740
Home and Community Services 384,983 3,363,781 3,748,764
Culture and Recreation 530,270 530,270
Employee Benefits 5,811,868 515,106 470,377 6,797,351
Capital Outlay 13,324,188 13,324,188
Principal and Interest 1,313,234 283,652 84,531 822,590 2,504,007
. Total Expenditures 22,024,158 3,826,834 13,408,719 5,636,660 44,896,371
Excess (Deficiency) of Revenues Over
Expenditures (1,345,338) 715,122 (2,670,663) 186,088 (3,114,791)
Other Financing Sources (Uses)
BANs Redeemed From Appropriations 1,228,735 1,228,735
Transfers In 2,253,944 159,218 2,413,162
. Transfers Out (1,531,369) (452,648) (429,145) (2,413,162)
Total Other Financin9 Sources (Uses) 722,575 (452,848) 1,387,953 (429,145) 1,228,735
Excess (Deficiency) of Revenues and Other
Sources Over Expenditures and Other Uses (622,763) 262.474 (1,282,710) (243,057) (1,886,056)
Fund Balances at Beginning of Year 6,007,462 1,056,848 2,083,482 1,446,849 10,594,641
.
Fund Balances at End of Year $ 5,384,699 $1,319,322 $ 800,772 $1,203,792 $ 8,708,585
.
.
See notes to the financial statements.
-16-
.
TOWN OF SOUTH OLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
. For the year ended December 31, 2006
Net Change in Fund Balance $ (1,886,056)
. 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 amount
by which capital outlay exceeds depreciation in the current period is:
. Capital outlay 15,722,766
Depreciation expense (3,987,397)
Loss on dispositions (1,472,136)
10,263,233
. 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:
Prepaid charges (61,786)
Deferred charges (21,250)
.
The issuance of long-term debt and increase in obligations under capital
leases provides current financial resources to governmental funds, while the
repayment of the principal of long term debt and capital leases consumes
the current financial resources of governmental funds.
. Neither transaction has any effect on net assets.
Repayment of bond principal 755,000
Due to Employees Retirement System 45,189
Compensated absences (695,835)
Claims and judgments payable 220,000
. Estimated liability for landfill closure
and postclosure care costs 19,072
Accrued interest payable (33,441)
. Change in Net Assets of Governmental Activities $ 8,604,126
.
.
See notes to financial statements.
-17-
.
TOWN OF SOUTH OLD
STATEMENT OF FIDUCIARY NET ASSETS
December 31, 2006
.
. Fishers Island
Town Ferry District Totals
ASSETS
Cash and investments $ 9,262,983 $ 56,490 $ 9,319,473
Other receivables 59,504 59,504
. Due from other funds 12,601 12,601
Total Assets $ 9,275,584 $ 115,994 $ 9,391.578
LIABILITIES
. Due to other funds $ 8,152,880 $ 115,994 $ 8,268.874
Other liabilities 307 307
Deposits held 1,122,397 1,122,397
Total Liabilities $ 9,275,584 $ 115,994 $ 9,391,578
.
.
.
.
.
.
See notes to financial statements.
-18-
.
.
.
.
.
.
.
.
.
.
.
TOWN OF SOUTH OLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
A
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Southold (the "Town"), which was established in 1640, is governed by Town Law and other
general laws of the State of New York and various local laws. The Town Board is the legislative body
responsible for overall operations. The Town Board consists of the Supervisor who is elected for a term
of two years and fIVe council members who are elected for terms of four years. The Town Board appoints
the Town Attorney, Comptroller and the Commissioner of Public Works whose terms are fixed by Town
Law. The Town Clerk, Receiver of Taxes, Superintendent of Highways, Justices and Town Trustees are
all elected and serve for four years, respectively. The Town provides a full range of municipal services,
including public safety, transportation, home and community services, public works and road
maintenance, recreation and parks, and general and administrative services.
The financial statements of the Town of Southold have been prepared in conformity with accounting
principles generally accepted in the United States of America (GAAP) as applied to governmental units.
The Governmental Accounting Standards Board (GASB) is the accepted standard setting body for
establishing governmental accounting and financial reporting principles.
The more significant of the government's accounting policies are described below.
1. REPORTING ENTITY
The financial reporting entity consists of: (a) the primary government, which is the Town of
Southold; (b) organizations for which the primary government is financially accountable; and (c)
other organizations for which the nature and significance of their relationship with the primary
government are such that exclusion would cause the reporting entity's financial statements to be
misleading or incomplete as set forth in GASB Statement No. 14.
The decision to include a potential component unit in the Town of Southold reporting entity is based
on several criteria set forth in GASB Statement No. 14 including legal standing, dependency and
financial accountability. Based on the application of these criteria, the following is a summary of
certain entities considered in determining the Town of Southold's reporting entity.
Certain special districts of the Town of Southold provide sanitation, ferry, and park services to
residents and businesses within the districts. These special districts are organized under New
York State Town law and have separately elected boards. Special districts cannot issue bonded
debt without the approval and the backing of the full faith and credit of the Town. Tax levies of the
special districts are collected by the Town Receiver of Taxes. As a result of this fiscal dependency,
the Town is financially accountable for these special districts. Accordingly, these special districts
have been determined to be component units of the Town and are presented discretely in a
separate column in the combined financial statements to emphasize that they are legally separate
from the primary government.
2.
BASIS OF PRESENTATION
The Town's basic financial statements include both government-wide (reporting the Town as a
whole) and fund financial statements (reporting the Town's major funds).
Government-wide Financial Statements
The government-wide financial statements reports information on the Town as a whole, except
fiduciary activities, with separate columns for the primary governmental activities as well as the
discretely presented component units.
In the government-wide Statement of Net Assets, the Town's governmental activities are
presented on a consolidated basis and are reported on a full accrual, economic resource basis,
which recognizes all long-term assets and receivables as well as long-term debt and obligations.
The Town's net assets are reported in three parts-investments in capital assets, net of related
debt; restricted net assets; and unrestricted net assets.
-19-
.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
.
2.
BASIS OF PRESENTATION (continued)
.
The government-wide Statement of Activities reports both the gross and net cost of each of the
Town's functional categories (public safety, transportation, home and community services, etc.),
which are otherwise supported by general government revenues (property, sales and use taxes,
certain intergovernmental revenues, fines, permits and charges, etc.). The Statement of
Activities reduces gross expenses (including depreciation), by related program revenues and
operating and capital grants, to produce the net cost of each program. Program revenues
include (a) charges for services and (b) operating and capital grants and contributions that are
directly associated with the function. Operating grants include operating-specific and
discretionary (either operating or capital) grants while the capital grants column reflects capital-
specific grants. The net costs (by function) are normally covered by general revenue (property,
taxes, intergovernmental revenues, interest income, etc). As a general rule the effect of
interfund activity has been eliminated in general purpose financial statements.
.
This government-wide focus is more on the sustainability of the Town as an entity and the
change in the Town's net assets resulting from the current year's activities.
.
Fund Financial Statements
The fund financial statements are similar to the financial statements presented in the previous
model. The new emphasis is on the major funds in the fund financial statements. Non-major funds
are summarized into a single column.
.
The accounts of the Town are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of
self-balancing accounts that comprise its assets, liabilities, fund balances, revenues, and
expenditures, which are segregated for the purpose of carrying on specific activities or attaining
certain objectives in accordance with special regulations, restrictions or limitations. The various
funds are presented by type in the fund financial statements. Accordingly, the Town maintains the
following fund types:
.
.
Governmental Funds - Governmental funds are those through which most governmental
functions are financed. The acquisition, use and balances of expendable financial resources and
the related liabilities are accounted for through governmental funds. The measurement focus of
the governmental funds is upon determination of financial position and changes in financial
position. Governmental funds are further classified as major and non-major funds.
The Town reports the following major governmental funds:
General Fund - is the principal operating fund of the Town. This fund is used to account for all
financial resources except those required to be accounted for in other funds.
.
Hiohwav Funds - To account for the maintenance and operation of highways.
Capital Proiects Fund - used to account for financial resources to be used for the acquisition
or construction of major capital facilities (other than those financed by special assessment
funds and trust funds).
.
.
-20-
.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
.
2.
BASIS OF PRESENTATION (continued)
Fund Financial Statements (continued)
Additionally, the Town reports the following non-major funds:
.
Special Revenue Funds - are used to account for the proceeds of specific revenue sources (other
than major capital projects) that are legally restricted to expenditures for specified purposes.
Special Revenue Funds include the following:
General Fund Part Town - To provide general services outside the Village of Greenport.
.
Soecial Grant Fund - Segregate and account for projects funded by Community
Development revenue.
Soecial District Funds - To provide special services to areas that encompass less than the
whole town.
.
Fiduciary Funds - Fiduciary Funds are used to account for assets held by the Town in a trustee
or custodial capacity.
Agency Fund - is for money (and/or property) received and held in the capacity of trustee,
custodian or agent.
.
Discretely Presented Component Units
Certain special districts that have separately elected boards provide transportation, park, mosqu~o
control, and sanitation services to residents and businesses within these districts, and follow
government fund accounting principles. These districts, which are accounted for as discretely
presented component units, are as follows:
.
The Fishers Island Ferry District, established in 1947
Orient Mosquito District, established in 1916
Fishers Island Garbage and Refuse District, established in 1952
Cutchogue-New Suffolk Park District, established in 1953
OrientcEast Marion Park District, established in 1969
Southold Park District, established in 1907
Mattituck Park District, established in 1941
.
Complete financial statements of these component units can be obtained from their respective
administrative offices:
.
Orient Mosquito District
145 Platt Road
Orient, NY 11957
Cutchogue-New Suffolk
Park District
P.O. Box 311
Cutchogue, NY 11935
Southold Park District
P.O. Box 959
Southold, NY 11971
Fishers Island Ferry District
P.O. Box 1179
Southold, NY 11971
Fishers Island Garbage
& Refuse District
Fishers Island, NY 06390
Orient-East Marion
Park District
P.O. Box 12
Orient, NY 11957
Mattituck Park District
P.O. Box 1413
Mattituck, NY 11952
.
.
-21 -
.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
.
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
3.
BASIS OF ACCOUNTINGIMEASUREMENT FOCUS
.
.
.
.
.
.
.
.
.
Measurement focus refers to what is being measured whereas the basis of accounting refers to
when revenues and expenditures are recognized in the accounts and reported in the financial
statements.. Basis of accounting relates to the timing of the measurement made, regardless of the
measurement focus applied.
In the government-wide statements, governmental activities are presented using the economic
resources measurement focus and are presented using the accrual basis of accounting. Under the
accrual basis of accounting, revenues are recognized when earned and expenses are recorded
when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets,
and liabilities resulting from exchange and exchange-like transactions are recognized when the
exchange takes place.
In the funds statements, governmental funds use a current financial resources measurement focus
and are accounted for using the modified accrual basis of accounting. Under the modified accrual
basis of accounting, revenues are recognized when susceptible to accrual (measurable and
available to finance current operations). "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or soon enough thereafter to
pay liabilities of the current period. The Town considers all revenues available if they are collected
within 60 days after the year end. Revenues susceptible to accrual include Suffolk County local
assistance at year end on behalf of the Town, franchise fees, and charges for services,
intergovernmental revenues and operating transfers. Permits, fees, and other similar revenues are
not susceptible to accrual because generally they are not measurable until they are received in
cash. In those instances where expenditures are the prime factor in determining eligibility for state
and federal grants, revenues are recognized when the expenditure is incurred. In the Capital
Projects Fund, long-term debt is recognized as revenue upon receipt of the proceeds.
Expenditures are recorded on the accrual basis except that (a) expenditures for prepaid expenses
are recognized when incurred; (b) principal and interest on indebtedness are recognized as
expenditures when due; (c) compensated absences, such as vacation and sick leave, which vest or
accumulate, are charged as expenditures when paid.
Encumbrance accounting, under which purchase orders, contracts and other commitments are
recorded for budgetary control purposes in order to reserve that portion of the applicable
appropriation, is employed in the governmental funds. Appropriations for all governmental funds
except the capital projects fund lapse at year-end. However, encumbrances reserved against fund
balances are re-appropriated in the ensuing year. Encumbrances are reported as reservations of
fund balances since they do not constitute expenditures or liabilities. Expenditures for such
commitments are recorded in the period in which the liability is incurred.
4.
ASSETS, LIABILITIES AND FUND EQUITY
RECEIVABLES
Receivables include amounts due from Federal, State, and other governments or enmies for
services provided by the Town. Receivables are recorded and revenues recognized as earned or
as specific program expenditures are incurred.
INVENTORY - MATERIALS AND SUPPLIES
Inventory in the general and special revenue funds is valued at cost. Inventory in these funds is
accounted for under the consumption method.
- 22-
.
.
.
.
.
.
.
.
.
.
.
A.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4.
ASSETS, LIABILITIES AND FUND EQUITY (continued)
CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $5,000 or more are reported at
historical cost or estimated historical cost. Contributed assets are reported at fair market value
as of the date received. Additions, improvements and other capital outlays that significantly
extend the useful life of an asset are capitalized. Other costs incurred for repairs and
maintenance are expensed as incurred. Depreciation on all assets is provided on the straight-
line basis over the following estimated useful lives:
Buildings
Improvements and other
Machinery and equipment
Infrastructure
1 0-40 years
20 years
5-10 years
20-30 years
Infrastructure assets, consisting of certain improvements other than buildings including roads,
curbs, sidewalks, bridges, street lighting are capitalized along with other capital assets.
In the fund financial statements, capital assets are recorded as capital outlay expenditures in the
governmental fund upon acquisition.
DEFERRED REVENUE/UNEARNED INCOME
Deferred revenues/unearned income are those where asset recognition criteria have been met, but
which revenue recognition criteria have not been met. Such amounts include collections in
advance, unearned income and amounts that have been deemed to be "measurable" but not
"available" to finance current expenses pursuant to generally accepted accounting principles.
PREPAlDS
Prepaids record payments to venders that benefit future recording periods and are reported on the
consumption basis. Prepaids in the General and Special Revenue Funds represent insurance
premiums paid for coverage that will benefit the subsequent period and for retirement benefits that
will benefit a future period.
LONG-TERM OBLIGATIONS
The liabilities for long-term obligations consisting of general obligation bonds, compensated
absences, due to employee retirement system, judgments, claims and liability for landfill closure
and post closure costs are recognized in the government-wide financial statements.
In the fund statements, long-term obligations are not reported as liabilities. The debt proceeds
are reported as other financing sources and payment of principal and interest reported as
expenditures.
5.
REVENUES AND EXPENDITURES
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES
In Suffolk County, the assessment and lien of real property for taxation is done by the County
Department of Assessment. Real property taxes become a lien on December 1 for both school and
general taxes. The Town's assessment rolls are used for the levy of real property taxes by the
Town and the School Districts, as well as by the County and by Special Districts of the County and
the Town.
- 23-
.
TOWN OF SOUTH OLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
.
5.
REVENUES AND EXPENDITURES (continued)
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES (continued)
.
The Town of Southold Receiver of Taxes collects all real property taxes for the Town, Suffolk
County, Town Special Districts and School Districts. These taxes are levied on December 1, and
are due in two installments, 50% on December 1 and 50% on May 10, payable without penalty to
January 10 and May 31, respectively. Penalties are imposed thereafter at the rate of one-twelfth of
the rate of interest determined by the State Commissioner of Taxation and Finance, after which
taxes are payable to the County Treasurer. The Town retains the total amount of Town, Highway
and Town Special Districts levies from the amount collected, and forwards the balance collected to
the County which assumes collection responsibility. The Town and Town's Special Districts
therefore realize annually the 100% collection of real property taxes.
School District property taxes are also levied on December 1, and are also payable in two
installments. School property taxes are due in two installments, 50% on December 1 and 50% on
May 1 0 payable without penalty to January 10 and May 31, respectively. The County is also
responsible for uncollected school taxes.
.
.
INTERFUND TRANSACTIONS
Interfund transactions have been eliminated from the government-wide financial statements. In
the funds statements interfund transactions include:
a)
Interfund Revenues
.
Interfund revenues, quasi-external transactions, in the general fund represent amounts
charged for services or facilities provided by the general fund. The amounts paid by the fund
receiving the benefrt of the service or facilities are reflected as an expenditure of that fund.
b)
Transfers
.
Transfers represent payments to the debt service, general fund and capital projects funds
from the other funds for their appropriate share of the debt service, general fund or capital
project costs.
COMPENSATED ABSENCES
.
The liability for vested or accumulated vacation or sick leave (compensated absences) is
recorded as current and noncurrent obligations in the government-wide statements. The current
portion of this debt is estimated based on historical trends. In the fund financial statements only
the compensated absence liability payable from expendable available financial resources is
incurred.
.
The amount that is expected to be liquidated with expendable available financial resources is
reported as expenditures and a liability in the funds statement in the respective fund that will pay it.
6.
EQUITY CLASSIFICATIONS
.
In the Government-wide Statements, equity is classified as net assets and displayed in three
components:
a) Invested in capital assets, net of related debt-Consists of capital assets including
restricted capital assets, net of accumulated depreciation and reduced by the outstanding
balances of any bonds, notes, or other borrowings that are attributable to the acquisition,
construction, or improvement of those assets.
.
-24-
.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2006
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
.
6.
EQUITY CLASSIFICATIONS (continued)
b) Restricted net assets-Consists of net assets with constraints placed on the use either by
(1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or (2) law through constitutional provisions or enabling legislation.
.
c)
Unrestricted net assets-All other net assets that do not meet the definition of "restricted"
or "invested in capital assets, net of related debt:
.
In the Fund Statements, governmental fund equity is classified as fund balance. Fund balance
is further classified as reserved and unreserved, with unreserved further split between
designated and undesignated. Portions of fund equity are segregated for future use and therefore
not available for future appropriation or expenditure. Amounts reserved for encumbrances,
inventory, insurance claims and debt service represent portions of fund equity, which are required to
be segregated in accordance with state law or GAAP. Designations of fund balances in
governmental funds indicate the utilization of these resources in the subsequent year's budget or
tentative plans for future use.
.
B.
STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
1.
BUDGETARY DATA
.
Budgets are adopted annually on a basis consistent with generally accepted accounting
principles. Appropriations authorized for the current year are increased by the amount of
encumbrances carried forward from the prior year.
.
Budgetary controls for special revenue funds are established in accordance with the applicable
grant agreement, which may cover a period other than the Town's fiscal year. Appropriate
budgetary adjustments have been made to reflect these grant agreements during the Town's
fiscal year.
the Town follows the procedures enumerated below in establishing the budgetary data reflected in
the financial statements:
.
a) No later than October 1, the Supervisor submits a tentative budget to the Town Board for
the fiscal year commencing the following fiscal year. The tentative budget includes the
proposed means of financing for all funds.
b) After public hearings are conducted to obtain taxpayer comments, no later than November
20, the Town Board adopts the budget.
c) The Town Board must approve all modifications of the budget. However, the Supervisor
is authorized to transfer certain budgeted amounts within departments.
.
In order to show the full legal level of budgetary compliance for the general and certain special
revenue funds, detailed individual statements of revenues, expenditures and changes in fund
balances - budget and actual, are presented in a separate budget report.
.
.
-25 -
.
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
B. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (continued)
.
2.
FUND BALANCES
DESIGNATION OF FUND BALANCE
.
Portions of the unreserved balances at December 31, 2006 were designated for the subsequent
year's operating budgets as follows:
Fund
Total
Fund Balance
Unreserved
Fund Balance
Unreserved and
Designated
for Subsequent
Year's
Budget
Fund Balance
Unreserved
Undesignated
.
.
Non-Major Funds:
Town Outside Village
Special Grant
East West Fire Protection District
Southold Wastewater District
Fishers Island Sewer District
Solid Waste Management District
Total
$ 908,193
5,000
19,648
223,779
40,948
6,224
$ 1,203,792
$
484,599
5,000
6,228
$
423,594
.
$
495,827
13,420
223,779
40,948
6,224
707,965
$
C. DETAILED NOTES ON ALL FUNDS
1.
CASH AND INVESTMENTS
.
Cash consists of funds deposited in demand accounts, time deposit accounts, and certificates of
deposit with maturities of less than three months.
.
The Town's investments are governed by a formal investment policy. The Town's monies must
be deposited in FDIC-insured commercial banks or trust companies located within the state.
The Town is authorized to use demand accounts and certificates of deposit. Permissible
investments include obligations of the U.S. Treasury, U.S. Agencies and investments made by
the Cooperative Liquid Asset Security System (CLASS).
.
CLASS is a cooperative investment plan consisting of U.S. Treasury Obligations and repurchase
agreements relating to treasury obligations. Investments are stated at cost, which approximates
market value. CLASS was established as a cooperative investment arrangement organized under
the CLASS Municipal Cooperation Agreement made pursuant to New York General Municipal Law,
Article 3A and 5-G.
.
Collateral is required for demand deposits and time deposits accounts at 105% of all deposits not
covered by federal deposit insurance. Obligations that may be pledged as collateral include
obligations of the United States and its agencies and obligations of the State and its municipalities
and school districts. The Town's collateral agreements are based on the Town's available balance.
.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
C. DETAILED NOTES ON ALL FUNDS (continued)
.
1.
CASH AND INVESTMENTS (continued)
.
Custodial Credit Risk - Deposits/Investments - Custodial credit risk for deposits exists when, in
the event of the failure of a depository financial institution, a government may be unable to
recover deposits, or recover collateral securities that are in possession of an outside agency.
Custodial credit risk for investments exists when, in the event of the failure of the counterparty, a
government will not be able to recover the value of its investments or collateral securities that
are in possession of an outside party.
.
Governmental Accounting Standards Board Statement No. 40 directs that deposits be disclosed
as exposed to custodial credit risk if they are not covered by depository insurance, and the
deposits are either:
.
. Uncollateralized
. Collateralized with securities held by the pledging financial institution, or
. Collateralized with securities held by the pledging financial institution's trust department or
agent but not in the Town's name
.
At December 31, 2006 the Town's cash book balance was approximately $29,624,000. This
amount is inclusive of Fiduciary fund deposits of approximately $9,300,000 but exclusive of petty
cash of approximately $2,200. The available bank balance was approximately $32,500,000. Of the
bank balance, $1,100,000 was covered by Federal deposit insurance, and approximately
$40,706,000 was covered by collateral held by the Town's agent, a third-party financial institution, in
the Town's name.
2.
INTERFUND RECEIVABLES AND PAYABLES
Interfund receivables and payables for the primary government at December 31, 2006 were as
follows:
.
Amount Amount
Receivable Pavable
General Fund - Town wide $ 190,208 $ 1,171,758
Highway Fund 461,241 49,290
Capital Projects Fund 234,970 140,745
Part Town 115,236
Special Grant 5,000
East-West Fire District 56,488
Southold Wastewater District 2,146 173
Fishers Island Sewer District 9,806
Solid Waste Management District 286.871
$ 1 361 966 $ 1 361 966
.
.
Interfund receivable and payable balances for the primary government at December 31, 2006
are expected to be paid currently.
.
.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
C. DETAILED NOTES ON ALL FUNDS (continued)
. CAPITAL ASSETS
3.
Balance Balance
Primary government 1/1/06 Additions Deletions 12/31/06
. Capital assets not being depreciated
Land $ 47,772,278 $ 10,569,239 $ -0- $ 58,341,517
Construction in progress 1,608,081 18,264 1,406,231 220,114
Total capital assets not being depreciated 49,380,359 10,587,503 1,406,231 58,561,631
Depreciable capital assets
. Buildings 4,574,513 3,732,710 8,307,223
Improvements other than buildings 13,498,954 119,205 13,618,159
Machinery and equipment 9,522,815 627,218 233,890 9,916,143
Infrastructure 70,038,525 656,130 70,694,655
Total depreciable capital assets 97,634,807 5,135,263 233,890 102,536,180
. Less accumulated depreciation
Buildings 2,068,530 137,736 2,206,266
Improvements other than buildings 3,542,084 390,004 3,932,088
Machinery and equipment 6,041,374 724,481 167,985 6,597,870
. Infrastructure 45,069,099 2,735,176 47,804,275
Total accumulated depreciation $ 56,721,087 $ 3,987,397 $ 167,985 60,540,499
Total net depreciable capital assets 41,995,681
Total net capital assets $100,557,312
.
Depreciation expense was charged to governmental functions as follows:
General 90vernment support $ 249,268
Public safety 169,011
Transportation 2,949,839
. Economic assistance and opportunity 37,610
Culture and recreation 62,609
Home and community services 519,060
$ 3,987,397
.
.
.
- 28-
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2006
C. DETAILED NOTES ON ALL FUNDS (continued)
.
3.
CAPITAL ASSETS (continued)
.
Discretely presented component units
Capital assets not being depreciated
land
Construction in progress
Total capital assets not being depreciated
Depreciable capital assets
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total depreciable capital assets
Less accumulated depreciation
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accum ulated depreciation
Total net depreciable capital assets
Total net capital assets
.
.
.
.
4. INDEBTEDNESS
SHORT TERM DEBT
.
Balance
1/1/06
$ 2,213,759
13,174,567 $
15,388,326
3,540,111
2,575,589
3,200,728
2,138,386
11,454,814
1,289,733
1,061,574
2,132,657
1,155,866
$ 5,639,830 $
Additions
Balance
12/31/06
Deletions
324,711
324,711
$
$ 2,213,759
12,947,081
15,160,840
552,197
552,197
26,774
645,143
120,171
6,894
798,982
3,566,685
3,220,732
3,320,899
2,145,280
12,253,796
83,842
117,672
151,754
81,474
434,742
1,373,575
1,179,246
2,284,411
1,237,340
6,074,572
6,179,224
$ 21,340,064
Bond Anticipation Notes (BANs) - Bond anticipation notes (BANs) are used as a temporary
means of financing capital expenditures in the capital projects fund. State law requires that BANs
issued for capital purposes be converted to long-tenn obligations within five years after the original
issue date. The notes or renewal thereof may not extend more than two years beyond the original
date of issue unless a portion is redeemed within two years and within each 12 month period
thereafter. Liabilities for BANs are generally accounted for in the capital projects fund. BANs are
expected to be paid from the proceeds of future bond issues after renewal of these notes. These
BANs bear interest at various rates from 3.66% to 3.76% and are due at various dates through
2007.
.
.
When BANs are not redeemed with the proceeds of bond issues, but instead paid from budgetary
appropriations, the principal amount paid is recorded as an expenditure in the operating fund and a
financing source is recorded in the capital projects fund.
.
-29 -
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
c.
DETAILED NOTES ON ALL FUNDS (continued)
4.
INDEBTEDNESS (continued)
SHORT TERM DEBT (continued)
These notes are summarized as follows:
Description
Various Purposes
Various Purposes
New London Wharf
Fishers Island Garbage
Total
Interest
Rate
3.66%
3.73%
3.70%
3.76%
Amount
$ 6,619,000
1,110,000
1,625,000
560.000
$ 9914000
Of the $9,914,000 in bond anticipation notes, $7,729,000 relates to the primary govemment and the
remaining $2,185,000 relates to the component units.
LONG TERM DEBT
Summary of changes in long-term debt transactions for the year ended December 31, 2006 is as
follows:
Non-current
Balance Balance liabilities due Non-current
1/1/06 Increases Reductions 12/31/06 within one year liabilities
Primary Government:
General obligation bonds $ 9,249,098 $ 755,000 $ 8,494,098 $ 779,098 $ 7,715,000
Due to Employees Retirement System 93,993 45,189 48,804 48,804 .0-
Compensated absences 5,779,826 695,835 6,475,661 6,475,661
Claims and judgments 220,000 220,000 -0- .0-
Estimated liability for landfill closure
and post-closure care costs 612,395 19,072 593,323 10,5SO 582,773
Component Units:
General obligation bonds 3,050,000 195,000 2,855,000 200,000 2,655,000
Claims and judgments -0- 200,000 200,000 SO,OOO 150,000
General Obligation Bonds - The Town borrows money in order to acquire land or equipment or
construct buildings and improvements. This enables the cost of these capital assets to be bome by
the present and future taxpayers receiving the benefrt of the capital assets. These long-term
liabilities, which are backed by the full fanh and credit of the Town, bear interest at various rates
from 3.14% to 6.375% and have maturity dates in 2009 through 2021.
Future principal and interest payments to maturity for both the primary govemment and the
component units are as follows:
Year Endinq Principal Interest
2007 $ 979,098 $ 376,466
2008 995,000 345,307
2009 1,025,000 312,347
2010 1,000,000 277,956
2011 1,025,000 242,981
2012-2016 4,100,000 765,577
2017-2021 2,225,000 167,650
Totals $ 11 349 098 $ 2.488.284
-30 -
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
C.
DETAILED NOTES ON ALL FUNDS (continued)
4. INDEBTEDNESS (continued)
LONG TERM DEBT (continued)
Other long-term liabilities for claims and judgments, compensated absences, retirement system
and the estimated liability for landfill closure and post closure costs are to be paid by the fund
that gave rise to the liability.
PRIORYEAR DEFEASANCE OF DEBT
In prior years, the Town defeased certain bonds by placing the proceeds of new bonds in an
irrevocable trust with an escrow agent to provide for all future debt service payments on the old
bonds. Accordingly, the trust account assets and liability for the defeased bonds are not including
in the Town's financial statements. At December 31, 2006, $1,950,000 of these bonds outstanding
are considered defeased.
5.
RETIREMENT SYSTEM
Plan Description
The Town of Southold participates in the New York State and Local Employees' Retirement System
(ERS) and Local Police and Fire Retirement System (PFRS). This is a cost-sharing multiple-
employer retirement system. The System provides retirement benefits as well as death and
disability benefits.
Obligation of employers and employees to contribute and benefrts to employees are governed by
the New York State Retirement and Social Security Law (NYSRSSL). As set forth in the
NYSRSSL, the Comptroller of the State of New York (Comptroller) serves as sole trustee and
administrative head of the System. The Comptroller shall adopt and may amend rules and
regulations for the administration and transaction of the business of the System and for the custody
and control of their funds.
A publicly available annual report containing financial statements and required supplemental
information for the Employees' Retirement System may be obtained by writing to the New York
State Retirement System, Governor Smith State Building, Albany, NY 12244.
Fundinq Policv
The System is noncontributory except for employees who joined the New York State and Local
Employees' Retirement System after July 27, 1976 and who have less than ten years of
membership and less than ten years of credited service with a retirement system under the
provisions of article fourteen or fifteen of the NYSRSSL, who contribute 3% of their salary. Prior to
October 1, 2000, all employees who joined the System after July 27, 1976 were required to
contribute 3% of their salary. Under the authority of the NYSRSSL, the Comptroller shall certify
annually the rates expressed as proportions of payroll of members, which shall be used in
computing the contributions required to be made by employers to the pension accumulation fund.
The Town is required to contribute at an actuarially determined rate. The actual contributions were
equal to the actuarially required amounts and also include additional contributions to fund various
early retirement incentives made available to the Town employees. The credits and miscellaneous
adjustments represent modification made by the ERS for prior year's contributions.
The required contributions, for the Primary government, for the current year and two preceding
years were:
2006
2005
2004
ERS
$ 1,096,547
$ 1,068,200
$ 992,023
$
$
$
PFRS
741,445
1,016,937
679,079
The Town's contribution to the system was 100% of the contributions required each year.
- 31 -
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C.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2006
DETAILED NOTES ON ALL FUNDS (continued)
6. POST EMPLOYMENT BENEFITS
In addition to providing pension benefits, the Town provides health insurance coverage and survivor
benefits for retired employees and their survivors. Substantially all of the Town's employees may
become eligible for these benefits if they reach normal retirement age while working for the Town.
Health care benefits are provided through either a self-funded plan whose premiums are based on
the benefits paid during the year or are provided in accordance with New York State Health
Insurance Rules and Regulations (administered by the New York State Department of Civil Service)
through the New York State Empire Plan (the "Empire Plan") whose premiums are based on the
benefits paid throughout the State during the year.
The Town recognizes the cost of providing benefits by recording its share of insurance
premiums or the actual benefits paid as expenditure in the year paid. The Town's union
contracts and ordinances require that it provide its eligible enrollees with benefit coverage under
either the self-funded plan or the Empire Plan. Under the provisions of the Empire Plan,
premiums are adjusted on a prospective basis for any losses experienced by the Empire Plan.
The Town has the option to terminate its participation in the Empire Plan at any time without
liability for its respective share of any previously incurred loss. During the 2006 year,
$3,261,660 was paid on behalf of 93 retirees and 223 active employees and is recorded as an
expenditure in the General Fund.
COMPENSATED ABSENCES
7.
Town employees are granted vacation and sick leave and earn compensatory absences in
varying amounts. In the event of termination or upon retirement, an employee is entitled to
payment for accumulated vacation and sick leave and unused compensatory absences at
various rates subject to certain maximum limitations.
Estimated vacation, sick leave and compensatory absences accumulated by governmental fund
type employees have been recorded in the statements of net assets. Payment of vacation time and
sick leave is dependent upon many factors; therefore, timing of future payments is not readily
determinable. However, management believes that sufficient resources will be made available for
the payments of vacation, sick leave and compensatory absences when such payments become
due. As of December 31,2006, the value of the accumulated vacation time and sick leave was
$6,475,661 for the primary government.
D. COMMITMENTS AND CONTINGENCIES
Risk Management
The Town is self-insured for both medical insurance and general liability insurance. The amount of
medical claims outstanding at December 31, 2006 is $161,976. This amount has been reserved
against fund balance in the General Fund.
In common with other municipalities, the Town receives numerous notices of claims. Prior to 2005,
coverage for bodily injury and property damage was previously written on a primary non-self insured
retention ("SIR") basis. Insurance market conditions and availability precluded the Town from obtaining
coverage in 2005 without an SIR. As a result, in 2006 the Town self-insured for bodily injury and
property damage up to a maximum of $50,000 per claim. The $50,000 limitation was the minimum
retention amount available to the Town. Claims in excess of $50,000 are covered by excess liability
policies providing coverage for $10,000,000 per occurrence and in the aggregate. Although the
eventual outcome of these 2006 claims cannot presently be determined, the Town's third party
administrator has estimated unsettled claims at December 31, 2006 to be $83,863. These amounts
have been reserved against fund balance in the General Fund. The Town is of the opinion that the
ultimate settlement of the outstanding claims will not result in a material adverse effect on the Town's
financial position.
Since 2005, there have been no significant reductions in insurance coverage as compared to the prior
year; in addition there were no settlements on excess of insurance coverage over the last three years.
The Town is also self-insured for unemployment benefits paid.
- 32-
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2006
D.
COMMITMENTS AND CONTINGENCIES (continued)
Landfill Closure and Post-Closure Care Costs
State and federal laws and regulations require the Town to place a final cover on its landfill sites and to
perform certain maintenance and monitoring functions at the sites for thirty years after closure. The Town
ceased accepting waste at its Cutchogue landfill as of October 8, 1993. The Town entered into a
stipulation of settlement with the New York State Department of Environmental Conservation in
October of 1994 in which all charges of operational violations at the Cutchogue landfill were dropped.
Under the stipulation, the Town agreed to close and place a final cover over the landfill and to pay a
civil penalty of $650,000 over seven years. Construction of the final cover commenced in the summer
of 2001 and was completed in the fall of 2003.
In addition to placement of the final cover on the landfill, state and federal regulations presently require
the Town to perform certain maintenance and monitoring functions at the site for up to thirty years.
Accordingly, as of December 31,2006 the Town has recorded a liability of $593,323 which represents the
provision to be made in future budgets for post-closure landfill costs. Actual costs may vary due to
inflation or deflation, changes in technology, or changes in regulations or applicable laws.
Actual costs associated with the placement of the final cover totaled $7,681,719. Financing for closure
activities was provided through a $2,000,000 grant from the New York State Department of
Environmental Conservation with the balance provided with a state subsidized loan through the New
York State Environmental Facilities Corporation. Costs associated with post closure care will be
covered by charges to future landfill users and future tax revenue.
Lease Commitments and Leased Assets
The Town leases property and equipment under operating leases. Total rental expenditures on such
leases for the year ended December 31,2006 were approximately $191,773. Future obligations over
the primary terms of the Town's leases as of December 31,2006 are as follows:
2007 $ 109,824
2008 109,028
2009 107,3480
2010 86,909
2011 and thereafter 563.901
Total $ 977.010
CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED
COMPONENT UNITS
E.
The following represents condensed financial statements for the discretely presented component units as
of and for the year ended December 31, 2006:
Condensed Statement of Net Assets:
Due from Capital Assets Other
Current Primary Net 01 Current Long-T enn Net
Assets Government Depreciation Uabilities Uabilities Assets
Fishers Island Ferry District $ 489,288 $ 182,783 $ 15,672,853 $ 2.367,007 $ 2,700,000 $ 11,277,917
Fishers Island Refuse and Garbage 607,760 59,613 3,146,256 621,736 3,191,893
Cutchogue-New Suffolk Park District 108,649 16,414 123,200 16,414 231,849
Soulhold Park Distnct 43,842 35,659 696,598 37,930 738,169
Orient-East Marion Park. District 5,496 3,475 432,985 14,602 427,354
Mattituck Park District 255,998 52,925 1,242,272 166,858 105,000 1,279,337
Orient Mosquito District 16,812 9,309 25,900 18,235 33,786
$ 1,527,845 $ 360,178 $ 21,340,084 $ 3,242,782 $ 2,805,000 $ 17,180,305
- 33-
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31,2006
E.
CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED
COMPONENT UNITS (continued)
.
Condensed Statement of Activities:
.
Program General Revenue Net Assets
Net Expense Properly
Expenses Revenue (Revenue) Tax Other Change 1/1106 12/31106
Fishers Island Feny Distlict $ 3,061,265 $ 2,013,785 $ 1.047,480 $ 400,000 $ 854,443 $ (206,963) $ 11,070.954 $ 11,2n,917
Fishers Island Refuse and Garbage 538.458 32,938 505,520 563.500 70.888 (128,868) 3,063.025 3.191,893
Cutchogue-New Suffolk Pall< Dislricl 160.014 160,014 141.000 917 18,097 249,946 231,849
5ouIhoId Pall< DisIricI 287,960 287.960 315.000 43,691 (70.731) 667,438 738,169
Orient-East Marion PaI1< District 27,063 27,063 27,617 76 (630) 426,724 427,354
Mallilucl< Pall< Distlict 368,453 368.453 426,110 37.511 (95,168) 1,184.169 1.279,337
Orient Mosquno DisIricI 86,m 86,977 76,285 2.412 8,280 42,068 33.786
$ 4,530,190 $ 2,046,723 $ 2,483.467 $ 1,949,512 $ 1,009,938 $ (475,983) $ 16,704,322 $ 17,180,305
F. SUBSEQUENT EVENTS
.
.
.
On April 15, 2007, the Town issued Serial Sonds for public improvements in the amount of
$14,650,000. These public improvements bonds are allocated as follows: $9,987,900 for open space
preservation, $1,200,000 for land acquisition, $3,000,000 for a solid waste management transfer
station, $315,000 for a settlement with New York State and $147,100 for equipment. The interest rate
on these bonds range from 4% during the initial year to 4.25% for the final 20 years. The bonds final
maturity date is 2030.
G.
NEW PRONOUNCEMENTS
.
The Governmental Accounting Standards Soard (GASS) approved new accounting standards
applicable to 'other post-employment benefits" (OPES's) and "termination benefits", which are non-
pension benefits provided after a person leaves employment, including retiree health care. Until now,
these benefits have generally been administered by municipalities on a pay-as-you-go basis and have
not been reported as a liability on financial statements.
.
GASS 45 and 47 requires municipalities which adhere to GAAP (Generally Accepted Accounting
Principles) to account for OPES and termination liabilities on an accrual basis much like they already
account for pension liabilities, generally adopting the actuarial methodologies used for pensions, with
adjustments for the different characteristics of OPES and termination benefits and the fact that most
municipalities have not set aside any funds against this liability.
.
Under GASS 45 and 47, based on actuarial valuation, an annual required contribution ("ARC") will be
determined for each municipality and then be periodically updated depending on the number of
members within the plan.
The Town, as well as its component units are required to implement GASS 45 and 47 for the year
ended December 31, 2007.
.
.
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REQUIRED SUPPLEMENTARY
INFORMATION OTHER THAN
MANAGEMENT DISCUSSION AND
ANALYSIS
.
.
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.
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TOWN OF SOUTHOLD
GENERAL FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year ended December 31, 2006
Variance with
. Original Final Final Budget
Budget Budget Actual Positive/(Negative )
REVENUES
Real Property Taxes $14,872,736 $ 14,872,736 $ 14,872,736
Other Real Property Tax Items 68,500 68,500 85,808 $ 17,308
Non-Property Tax Items 616,000 616,000 616,670 670
. Departmental Income 342,100 585,100 477,849 (107,251)
Intergovernmental Charges 386,616 297,379 316,049 18,670
Use of Money and Property 460,000 460,000 684,166 224,166
Licenses and Permits 223,100 223,691 258,794 35,103
Fines and Forfeitures 112,000 112,000 171,763 59,763
Sale of Property and Compensation for Loss 74,050 77,505 95,057 17,552
. Miscellaneous Local Sources 47,420 109,669 146,260 36,591
State Aid 2,434,897 2,561,687 2,725,177 163,490
Federal Aid 238,737 228,491 (10,246)
Total Revenues 19,637,419 20,223,004 20,678,820 455,816
EXPENDITURES
. General Government Support 6,116,403 6,175,733 5,177,745 997,988
Public Safety 7,297,533 7,392,386 7,371,280 21,106
Public Health 33,300 33,300 32,988 312
Transportation 442,710 472,173 452,050 20,123
Economic Assistance and Opportunity 1,030,920 1,022,324 949,740 72,584
Culture and Recreation 395,314 396,830 384,983 11,847
. Home and Community Services 362,224 660,814 530,270 130,544
Employee Benefits 6,257,400 6,690,613 5,811,868 878,745
Debt Service - Principal and Interest 1,559,500 1,434,500 1,313,234 121,266
Total Expenditures 23,495,304 24,278,673 22,024,158 2,254,515
Deficiency of Revenues
. Over Expenditures (3,857,885) (4,055,669) (1,345,338) 2,710,331
Other Financing Sources (Uses)
Transfers In 6,038,180 6,308,189 2,253,944 (4,054,245)
Transfers Out (2,180,295) (2,252,520) (1,531,369) 721,151
Total Other Financing Sources (Uses) 3,857,885 4,055,669 722,575 (3,333,094)
.
Net Change in Fund Balance $ -0- $ -0- (622,763) $ (622,763)
Fund Balance at Beginning of Year 6,007,462
Fund Balance at End of Year $ 5,384,699
.
.
See notes to the financial statements.
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TOWN OF SOUTHOLD
HIGHWAY FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
. IN FUND BALANCES - BUDGET AND ACTUAL
Year ended December 31, 2006
Variance with
. Original Final Final Budget
REVENUES Budget Budget Actual Positive/(Negative)
Real Property Taxes $ 4,095,347 $ 4,095,347 $ 4,095,347
Other Real Property Tax Items 8,500 8,500 12,689 $ 4,189
Use of Money and Property 72,100 72,100 140,578 68,478
. Licenses and Permits 6,500 6,500 9,484 2,984
Sale of Property and Compensation
for Loss 7,521 7,521
State Aid 231,332 306,719 276,337 (30,382)
Total Revenues 4,413,779 4,489,166 4,541,956 52,790
. EXPENDITURES
Transportation 3,485,358 3,551,971 3,028,076 523,895
Employee Benefits 543,162 543,162 515,106 28,056
Debt Service - Principal and Interest 294,785 294,785 283,652 11,133
Total Expenditures 4,323,305 4,389,918 3,826,834 563,084
.
Excess (Deficiency) of Revenues
Over Expenditures 90,474 99,248 715,122 615,874
Other Financing Uses
. Operating Transfers In 355,900 355,900 (355,900)
Transfers Out (446,374) (455,148) (452,648) 2,500
Total Other Financing Uses (90,474) (99,248) (452,648) (353,400)
Net Change in Fund Balance $ -0- $ -0- 262,474 $ 262,474
.
Fund Balance at Beginning of Year 1,056,848
Fund Balance at End of Year $ 1,319,322
.
.
.
See notes to the financial statements.
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OTHER SUPPLEMENTARY
INFORMATION
.
.
.
.
.
.
.
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TOWN OF SOUTHOLD
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
December 31, 2006
East-West Fire Southold Fishers Solid Waste
. General Fund Special Protection Wastewater Island Sewer Management
Part Town Grant District District District District Totals
ASSETS
Cash and investments $ 821,446 $ 86,470 $ 225,862 $ 29,959 $ 188,485 $ 1 ,352,222
Accounts receivable, net of allowance 58,401 1,259 123,168 182,828
. Due from other funds 115,236 $ 5,000 56,488 2,146 9,806 286,871 475,547
Due from other governments 9,150 79,607 88,757
Prepaid expenditures 25,599 27,960 53,559
. Total Assets $1,020,682 $ 14,150 $ 142,958 $ 228,008 $ 41,024 $ 706,091 $ 2,152,913
LIABILITIES AND FUND EQUITY
LIABILITIES
Accounts payable $ 21,800 $ 9,150 $ 12,656 $ 76 $ 276,974 $ 320,656
. Due to other funds $ 173 173
Deferred revenue 90,689 110,654 4,056 422,893 628,292
Total Liabilities 112,489 9,150 123,310 4,229 76 699,867 949,121
. FUND EQUITY
Fund balance - reserved:
Prepaid expenses 25,599 25,599
Fund balance - unreserved:
. Designated - ensuing year's budget 459,000 5,000 6,228 470,228
Undesignated 423,594 13,420 223,779 40,948 6,224 707,965
Total Fund Equity 908,193 5,000 19,648 223,779 40,948 6,224 1,203,792
. Total Liabilities and Fund Equity $1,020,682 $ 14,150 $ 142,958 $ 228,008 $ 41,024 $ 706,091 $ 2,152,913
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TOWN OF SOUTH OLD
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS
Year ended December 31, 2006
East-West Fire Southold Fishers Solid Waste
General Fund Special Protection Wastewater Island Sewer Management
. Part Town Grant District District District District Totals
REVENUES
Real property taxes $ 492,996 $ 458,043 $ 22,790 $ 1,767,533 $ 2,741,362
Other real property tax items 1,523 604 30 $ 2 2,330 4,489
. Non property tax items 229,346 229,346
Departmental income 656,644 17,060 29,117 1,573,114 2,275,935
Intergovernmental charges 1,809 1,809
Use of money and property 47,074 5,594 9,677 1,689 31,238 95,272
Licenses and permits 7,232 156,548 163,780
. Sale of property and compensation for loss 6,738 128,924 135,662
Miscellaneous local sources 7 $ 5,000 1,645 6,652
State aid 47,671 79,607 127,278
Federal aid 41,163 41,163
Total Revenues 1,489,231 46,163 464,241 49,557 30,808 3,742,748 5,822,748
. EXPENDITURES
General government support 103,654 103,654
Public safety 409,449 459,705 869,154
Public health 7,104 7,104
. Home and community services 523,926 41 ,163 22,406 2,776,286 3,363,781
Employee benefits 214,993 255,384 470,377
Debt service - principal and interest 2,435 820,155 822,590
Total Expenditures 1,259,126 41 ,163 459,705 2,435 22,406 3,851,825 5,636,660
. Excess (Deficiency) of Revenues
Over Expenditures 230,105 5,000 4,536 47,122 8,402 (109,077) 186,088
Other Financing Uses:
Operating transfers out (209,971 ) (219,174) (429,145)
. Total Other Financing Uses (209,971 ) (219,174) (429,145)
Net Change in Fund Balance 20,134 5,000 4,536 47,122 8,402 (328,251 ) (243,057)
. Fund Balances at Beginning of Year 888,059 15,112 176,657 32,546 334,475 1,446,849
Fund Balances at End of Year $ 908,193 $ 5,000 $ 19,648 $ 223,779 $ 40,948 $ 6,224 $ 1,203,792
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DISCRETELY PRESENTED COMPONENT UNITS
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TOWN OF SOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF NET ASSETS
December 31, 2006
Fishers Island Cutchogue- South old Orient-East Mattituck Orient
Fishers Refuse and New Suffolk Park Marion Park Park Mosquito
. Island Ferry Garbage District Park District District District District District
District (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Totals
ASSETS
Current Assets:
Cash and investments $ 215,455 $ 591,364 $ 108,649 $ 43,842 $ 5,496 $ 254,833 $ 16,812 $ 1,236,451
. Accounts receivable, net of allowance 11,646 3,371 150 15,167
Due from primary govemment 182,783 59,613 16,414 35,659 3,475 52,925 9,309 360,178
State and federal receivables 237,056 237,056
Prepaid charges 25,131 13,025 1,015 39,171
Total Current Assets 672,071 667,373 125,063 79,501 8,971 308,923 26,121 1,888,023
. Non-Current Assets:
Non-depreciable capital assets 10,874,636 2,607,599 101,198 588,847 432,985 555,575 15,160,840
Depreciable capital assets, net of depreciation 4,798,217 538,657 22,002 107,751 686,697 25,900 6,179,224
Total Assets 16,344,924 3,813,629 248,263 776,099 441,956 1,551,195 52,021 23,228,087
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LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities 343,215 3,743 11,127 11,808 369,893
Accrued interest payable 67,959 1,217 69,176
. Due to other governments 2,271 160 2,431
Deferred Revenue 130,833 57,993 16,414 35,659 3,475 103,673 18,235 366,282
Bond anticipation notes payable 1,625,000 560,000 2,185,000
Non-current liabilities due within one year
General obligation bonds payable 150,000 50,000 200,000
. Claims and judgements payable 50,000 50,000
Total Current Liabilities 2,367,007 621,736 16,414 37,930 14,602 166,858 18,235 3,242,782
Noncurrent Liabilities:
General obligation bonds payable 2,550,000 105,000 2,655,000
. Claims and judgements payable 150,000 150,000
Total Liabilities 5,067,007 621,736 16,414 37,930 14,602 271,858 18,235 6,047,782
NET ASSETS
Investment in capital assets, net of related debt 11,347,853 2,503,025 640,883 1,087,272 15,579,033
. Unrestricted (69,936) 688,868 231,849 97,286 427,354 192,065 33,786 1,601,272
Total Net Assets $ 11,277,917 $ 3,191,893 $ 231,849 $ 738,169 $ 427,354 $ 1,279,337 $ 33,786 $ 17,180,305
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TOWN OF SOUTHOLD
DISCRETELY PRESENTED COMPONENT UNITS
COMBINING STATEMENT OF ACTIVITIES
Year ended December 31, 2006
. Fishers Island Cutchogue- Southold Orient-East Mattituck Orient
Fishers Refuse and New Suffolk Park Marion Park Park Mosquito
Island Feny Garbage District Park District District District District District
District (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) Totals
. REVENUES
Program revenues $ 2,013,785 $ 32,938 $ 2,046,723
Real property taxes 400,000 563,500 $ 141,000 $ 315,000 $ 27,617 $ 426,110 $ 76,285 1,949,512
Other real property tax items 527 35 562 1,124
Interest and earnings 21,506 70,888 917 41,591 41 18,879 1,662 155,484
Federal Aid 810,646 810,646
. Other 21,764 2,100 18,070 750 42,684
Total Revenues 3,268,228 667,326 141,917 358,691 27,693 463,621 78,697 5,006,173
EXPENSES
. General government support 130,910 130,910
Public health 86,977 86,977
Transportation 2,751,284 2,751.284
Culture and recreation 160,014 287,960 27,063 362,526 837,563
Home and community services 18,602 454,472 473,074
Interest 160,469 83,986 5,927 250,382
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Total Expenses 3,061,265 538,458 160,014 287,960 27,063 368,453 86,977 4,530,190
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Changes in Net Assets
206,963
128,868
(18,097)
70,731
630
95,168
(8,280)
475,983
Net Assets at Beginning of Year
Net Assets at End of Year
11,070,954
$11,277,917
3,063,025
$ 3,191,893
249,946
$ 231,849
667,438
$ 738,169
426,724
$ 427,354
1,184,169
$ 1,279,337
$
42,066
33,786
16,704,322
$17,180,305
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