Loading...
HomeMy WebLinkAbout2012 Annual Financial & Operating InformationSTATEMENT OF RECEIVED JUN 1 5 201~ Southold Town Clerk ANNUAL FINANCIAL AND OPERATING INFORMATION TOWN OF SOUTHOLD SUFFOLK COUNTY, NEW YORK DATED: MAY 25, 2012 TOWN OF SOUTHOLD SUFFOLK COUNTY, NEW YORK Town Hall PO Box 1179 Southold, NY 11971 Telephone: (631) 765-4333 Fax: (631) 765-4157 TOWN BOARD Scott A. Russell, Supervisor Louisa P. Evans Albert J. Krupski, Jr. Jill M. Doherty William P. Ruland Christopher M. Talbot Elizabeth A. Neville, Town Clerk Peter W. Harris, Superintendent of Highways John A. Cushman II,'Fown Comptroller Martin D. Finnegan, Esq., Town Attorney George R. Sullivan, Receiver of Taxes BOND COUNSEL Hawkins Delafield & Wood LLP New York, New York FINANCIAL ADVISOR MUNISTAT SERVICES, 1NC. Municipal Finance Advisory Service 12 Roosevelt Avenue Port Jefferson Station, N.Y. 11776 (631) 331-8888 E-mail: info~munistat.com Website: http://www.munistat.com STATEMENT OF ANNUAL FINANCIAL AND OPERATING INFORMATION TOWN OF SOUTHOLD SUFFOLK COUNTY, NEW YORK The material set forth herein, including the cover page, has been prepared by the Town of Southold, S,u.f. foll~ County, New York (the "Town", the "County" and the "State" respectively) n connection w th ts oon~at~on toprepare and submit such material in accordance with the Continuing Disclosure Undertakings and the official Statements having been prepared n connection with the sale and issuance of the following bond issues: $ 2,380,000 Refunding Serial Bonds- 2005 $ 3,000,000 Fishers Island Ferry District Serial Bonds - 2005 $14,650,000 Public Improvement Serial Bonds - 2007 $ 8,850,000 Public Improvement Serial Bonds- 2008 $ 5,283,000 Public Improvement Serial Bonds - 2009 $ 2,125,000 Refunding Serial Bonds-2009 $13,175,000 Public Improvements Serial Bonds - 2011 THE TOWN There follows in this Statement a brief description of the Town, together w th certain information concerning its economy andgovernmental organization, its ndebtedness, current major revenue sources and expenditures and general and specific funds. General Information The Town, with a land area of 54.5 square miles, is located in eastern Suffolk County on the north fork of Long Island. Settlement took place in I640. The Village of Greenport is located wholly within the Town. The Town also includes the area of Fishers Island which is located approximately twelve miles east of the mainland. Fishers Island is accessible only by water or air. There is also ferry service operating between Orient Point and New London, Connecticut. The Town is primarily a rural resort area with substant a shopping facilities available at Greenport, at various shopping centers within the Town, and at R verheadjust to the west. Some commercial serv ces are available within the ~ own in the hamlets of Southold, Cutchogue and Matt tuck. Agriculture has been a major industry n the Town since ts origins. In recent years, farm crops have gradually evolved from basic production to nursery crops including shrubs, sod, potted plants and other ornamentals. ,~ substantial portion of these products are shipped by ferry across Long Island Sound for distribution throughout New England. A number of vineyards have been established and w ne-mak ngs an important industry. Fishing and fish processing are now growing industries due to improved transportation facil ties. The Town is also a major summer resort area, utilizing bays, inlets and Long ls and and Block Island Sounds. The main highways in the Town are New York State Route 25 and the North Road. Rail transportation is provided by the Long Island Rail Road w th stations at Mattituck, Southold and Greenport. Ferry service is also available between Orient Point, east of Greenport, and New London, Connecticut as well as from Greenport to Shelter Island. Electric service is provided by the Long Is and Power Authority; gas service is provided by National Grid. Fire protection is the responsibility of volunteer fire and fire protection distr cts. The Town provides its own police protection. In the Village of Greenport, e ectr c service and fire protection are provided by the Village. Government Subject to the provisions of the State Constitution, the Town operates pursuant to the Town Law, the General Municipal Law, the Local Finance Law other laws generally applicable to the Town, and any special laws specifically applicable to the Town. Under such laws, there is no authority for the Town to have a charter, but pursuant to the Town Law and other laws generally applicable to home rule the Town may from time to time adopt local laws which do not coati ct w th ex~sting laws as enacted by the State. The legislative power of the Town is vested in the Town Board, which consists &five members elected for a term of four years, and the Supervisor, who is the chief executive officer of the Town, elected for a term of four years. Such terms are staggered such that two or three councilpersons are elected every two years. All the Town Board members are elected at large and there is no limitation to the number of terms each may serve. Six independently governed school districts are located wholly or partially within the Town, which rely on their own taxing powers granted by the State to raise revenues. The school districts use the Towffs assessment roll as their basis for taxation &property located within the Town. Employees The Town provides services through approximately 205 full-time, 46 pan-time, and 16 seasonal employees, some of whom are represented by orgamzed labor. The following table presents the number of employees represented by organized labor, the names of the unions and the contract expiration dates. Approximate Date Contract Name of Union Membership Expires Civil Service Employees Assoc ................................................ 142 12-31-12 Police Benevolent Assoc .......................................................... 46 12-31-11' *Contract in negotiation ECONOMIC AND DEMOGRAPHIC INFORMATION Population Characteristics The Town has had a population trend, as compared to the County and the State, as indicated below: Year Town of Suffolk New York Southold County State 1970 ........................................................................... 16,804 1980 ........................................................................... 19,172 1990 ........................................................................... 19,836 2000 ........................................................................... 20,599 2010 ........................................................................... 23,175 1,127,030 18,241,391 1,284,231 17,557,288 1,321,977 17,990,455 1,419,369 18,976,457 1,518,475 19,541,453 Source: U.S. Bureau &the Census. Income Data Per Capita Money Income 1990 2000 2010* Town of Southold $19,037 $27,619 $ 41,450 County of Suffolk 18,481 26,577 35,411 State of New York 16,501 23,389 30,791 Median Household Income 1990 2000 2010' Town of Southold $35,392 $49,898 $ 83,240 County of Suffolk 49,128 65,288 84,235 State of New York 32,965 43,393 55,217 Source: United State Bureau of the Census *Note Based on American Community Survey 3-Year Estimates (2007-2010) Unemployment Rate Statistics Unemployment statistics are not available for the Town as such. The sma est area for wh ch such statistics are available (which includes the Town) is the County of Suffolk. The information set forth below with respect to such County is included for information purposes only. It should not be implied from the inclusion of such data in this Statement that the Town is necessarily representative of the County or vice versa. Suffolk New York County State Annual Averages: 2006 ................................ 4.0% 4.6% 2007 ................................ 3.9 4.5 2008 ................................ 4.9 5.4 2009 ................................ 7.3 8.4 2010 ................................ 7.6 8.9 2011 ................................ 8.9 8.0 2012 (3months) .............. 8.1 9.0 Depaament of Labor, State of New York Selected Listing of Larger Employers Name Eastern Long Island Hospital .......................... Plum Island ADC* .......................................... Mattituck-Cutchogue UFSD ............................ Town of Southold ............................................ Peconic Landing .............................................. Southold UFSD ............................................... San Simeon by the Sound ................................ Greenport UFSD ............................................. Village of Greenport ....................................... Approximate Type No. of Employees Hospital 352 U.S. Govt. Facility 360 Public School 375 Local Government 267 Life Care Community 215 Public School 168 Nursing Home 180 Public School 125 Local Government 120 *Note: As of the date of this Official Statement, the U.S. General Services Administration is undertaking measures to study the decommission and potential sale of the Plum Island and PIADC facilities pending completion of the replacement National Bio and Agro- Defense Facility ("NBAF') in Manhattan, Kansas, anticipated in 2014. 3 INDEBTEDNESS OF THE TOWN The following pages set forth certain details with respect to the Indebtedness of the Town. Computation of Debt Limit and Calculation of Net Debt Contracting Margin (As of May 25, 2012) Fiscal Year State Ending Assessed Equalization May 31: Valuation Rate 2009 ................................................................. 2010 ................................................................. 2011 ................................................................. 2012 ................................................................. $108,292,749 0.95% 108,991,562 1.05 109,089,429 1.06 108,465,500 1.09 108,282,986 1.11 Total Five Year Full Valuation ................................................................................................ Average Five Year Full Valuation ........................................................................................... Debt Limit - 7% of Average Full Valuation ............................................................................. Inclusions: Outstanding Bonds: General Purposesa ........................................................................................................... Other ............................................................................................................................... Sub-Total .............................................................................................................. Bond Anticipation Notes ................................................................................................ Total Inclusions ......................................................................................... Exclusions: Appropriations for Outstanding Bonds .............................................................................. Appropriations for Outstanding Notes Other Exclusions ................................................................................................................ Total Exclusions ....................................................................................................................... Total Net Indebtedness ............................................................................................................. Net Debt Contracting Margin ................................................................................................... Percent of Debt Limit Exhausted ............................................................................................. a. Includes $29,201,400 issued for the preservation of open space. See "Community Preservation Fund" herein. Full Valuation 11,399,236,736 10,380,148,761 10,291,455,566 9,950,963,303 9,755,223,963 $51,777,028,329 10,355,405,665 724,878,369 42,450,000 0 42,450,000 4,842,000 47,292,000 720,000 444,000 0 1,164,000 46,128,000 $678.750.3 6.36% 4 Trend of Town Indebtedness The following table represents the outstanding indebtedness &the Town at the end of thc last five preceding fiscal years. Fiscal Year Ending December 31: 2007 2008 2009 2010 2011 Debt Outstanding End of Year: Bonds $25,020,000 $32,175,000 $$35,418,000 Bond Anticipation Notes 6,224,000 6,579,100 9,150,800 Total Debt Outstanding $31.244.000 $38.754.10~0 $41.568.800 Details of Short-Term Indebtedness Outstanding Bond Anticipation Notes $33,375,000 $44,385,000 6,218,000 2,992,000 $39.593.00~0 $ 47~.377.0~0 Maturity 08/31/2012 04/11/2013 Fiscal Year Ending December 31: Amount Purposes Outstanding Various Purposes .............................................................. $1,135,000 Various Purposes .............................................................. 715,000 Total ..................................................................... $1.850.00~0 Debt Service Requirements - Outstanding Bonds Principal Interest Total 2012 ........................................................................... $2,655,000 $1,707,037 $4,362,037 2013 ........................................................................... 2,545,000 1,568,124 4,113,124 2014 ........................................................................... 2,575,000 1,482,066 4,057,066 2015 ........................................................................... 2,600,000 1,392,456 3,992,456 2016 ........................................................................... 2,560,000 1,301,379 3,861,379 2017 ........................................................................... 2,640,000 1,204,627 3,844,627 2018 ........................................................................... 2,705,000 1,099,150 3,804,150 2019 ........................................................................... 2,285,000 1,003,138 3,288,138 2020 ........................................................................... 2,190,000 919,487 3,109,487 2021 ........................................................................... 2,250,000 836,650 3,086,650 2022 ........................................................................... 2,080,000 751,762 2,831,762 2023 ........................................................................... 2,160,000 671,912 2,831,912 2024 ........................................................................... 2,215,000 588,350 2,803,350 2025 ........................................................................... 2,255,000 501,019 2,756,019 2026 ........................................................................... 2,045,000 414,226 2,459,226 2027 ........................................................................... 2,085,000 330,863 2,415,863 2028 ........................................................................... 2,140,000 243,513 2,383,513 2029 ........................................................................... 2,180,000 154,207 2,334,207 2030 ........................................................................... 2,220,000 63,147 2,283,147 Totals ...................................................................... $ 44.385.000 $16.233.!14 $ 60.618.114 a Includes $30,024,100 for the presentation of open space See "Commun0y Preservation Fund" herein Does not reflect payments made to date 5 Calculation of Estimated Overlapping and Underlying Indebtedness Overlapping Units County of Suffolk .............................. Village of Greenport .......................... School Districtsa ................................ Fishers Island ..................... Greenport .............................. Mattituck-Cutchogue .......... New Suffolk Common ........ Oyster Ponds ....................... Southold ............................. Fire District ........................................ Cutchogue ............................ East Marion .......................... Fishers Island ....................... Mattituck .............................. Orient .................................... Southold ............................... Totals ....................................... Applicable Applicable Date of Percentage Total Net Report Applicable Indebtedness Indebtedness 04-09-12 3.71% $72,699,528 11/30/11 100.00 7,896,700 $47,429,856 7,305,500 06-30-11 100.00 180,000 180,000 06-30-11 100.00 0 0 12-21 - 11 98.49 27,189,729 25,022,172 06-30-11 100.00 0 0 06-30-11 100.00 0 0 12-30-11 100.00 6,844,681 6,844,681 0 0 12-31-10 100.00 0 0 12-31-10 100.00 88,301 88,301 12-31-10 I00.00 0 0 12-31 - 10 100.00 1,514,266 1,154,266 12-31-10 100.00 0 0 12-31 - I 0 100.00 1,025,000 1,025,000 $117.438.205 Sources Annual Financial Reports on fie w h he Office o£the State Comptroller, or more recently published Official Statements Debt Ratios (As of May 25, 2012) $89.409.776 $47,450,000 $2,047 0.49% 46,128,000 1,990 0.47 164,888,205 7,115 1.69 135,537,776 5,848 1.39 Total Direct Debt ..................................................................... Net Direct Debt ....................................................................... Total Direct & Applicable Total Overlapping Debt ............... Net Direct & Applicable Net Overlapping Debt ..................... a Does not include the Bonds b Thc current populalion of the Town is 23,175 (U.S. Census) c The~BllvaluationoftaxablerealpropertyinlheTownfor2011-12is$9,755,233,963. Percentage Amounta Per Capitab Of Full Valuec Authorized But Unissued Items The following Bonds are authorized but unissued: Date Authorized Purpose 02-25-03 Mattituck Inlet Erosion Study .............................................. $ 825,750 08-28-07 Open Space Preservation: Agricultural Lands .................... 3,100,000 08-16-11 Stormwater Mitigation ......................................................... 500,000 Total ..................................................................................... Capital Program Amount $ 3.682.75~0 Community Preservation Fund In 1998, the voters of the five East End towns (East Hampton Riverhead, Shelter 1,s, land, ,,S, outhampton, and Southold) approved a referendum creating the Community Preservation Fund, (the Fund') which is a conservation program to preserve open space and farmland in the five towns The fund s financedby a 2% tax on real estate sales. This ~s a one-time tax that the buyer of real estate is required to pay when purchasing a new or used home or vacant property. In 2006, the voters in all five towns approved a referendum to extend the collection of the tax through 2030. The Fund facilitates a voluntary program whereby landowners can sell their land or the deve opment rights to the land to the respective towns at fair market value. The towns may issue bonds for purchases to be paid. back through the life of the Fund with the 2% tax revenues. When a town finances an acquisition through the issuance of bonds, Section 64e of Town Law requires the preparat on of a report by or on behalf of the Town Supervisor which demonstrates how such indebtedness will be repaid by the Fund; including an estimate of projected revenues of the Fund during the period of indebtedness, an accountin of all ot~er ndebtedness incurred against the Fund to be repaid for the'same period, and a finding that there gwill be sufficient revenue to repay such indebtedness in its entirety from the Fund. As of the date of this Official Statement, there are $29,201,400 in bonds outstanding, the debt service on which is expected to be paid for by the Fund. Department 2012 2013 2014 General Town ................................................... $139,500 $ 55,600 $ -0- Highway Dept .................................................. 525,000 -0- -0- Total ..................................................... $ 664.50~0 $ 55.600 -0- Sources Appropriations ................................................. $ 69,000 $ 55,600 -0- Town Debt ....................................................... 595,000 -0- -0- Total .................................................... $ 664.50~0 $ 55.600 $ -0- The Town annually adopts a three year Capital Improvement Plan. Proiects may be funded by State and Federal aid, reserves, proceeds of obligations property taxes or a combination thereof. A summary of'the Capital Budget for 2012-2014 s set forth below: Landfill Closure and Postclosure Care Costs The Town owns a landfill on a site in the unincorporated area of Cutchogue, commonly known as the Cutchogue Landfill. The Town ceased accepting waste at its Cutchogue Lanilfill as of October 8 1993. Placement of the final cover, referred to as capping on the landfill was completed in November 2003. In addition to placement of the final cover on the landfiI[, state and federal regulations presently require the Town to perform certain maintenance and monitoring functions at the site for up to thirty years. The Town has and will continue to comply with said requirements. The ongoing post closure costs are estimated to be between $23,000 and $40,000 per year from 2012 through 2014. The Town paid $24 850 for such costs in 2011 and will continue to pay these costs n the future. Actual costs associated with the capping totaled $7681 720. Financing for closure activities was provided inpart through a grant from the New York State Department of Environmental Conservation in the amount of $2,000,000. The Balance was provided through a State subsidized loan received in July, 2004 from the New York State Environmental Facilities Corporation. Costs associated with postclosure care will be paid from charges to future users of the collection facility and site and future tax revenue. FINANCES OF THE TOWN Financial Statements and Accounting Procedures The Town maintains its financial records in accordance with the Uniform System of Accounts for Towns prescribed bythe State Comptroller. The financial records of the Town are auditedby independent accountants. The last such audit made available for public inspection covers the fiscal year ended December 31, 2010. In addition, the financial affairs of the Town are subject to periodic compliance review by the Office of the State Comptroller to ascertain whether the Town has complie~l with the requirements of various State and Federal statutes. A summary of the 2011 unaudited financial results of the Town are presented in Appendix A and a copy of such report is attached as Appendix B. Fund Structure and Accounts The Town utilizes fund accounting to record and report its various service activities. A fund represents both a legal and an accounting entity which segregates the transactions of specific programs in accordance with special regulations, restrictions or limitations. There are three basic fund types: (1) governmental funds that are used to account for bas c serv ces and capital projects; (2) proprietary funds that account for operations ora commercial nature; and, O) fiduciary funds that account for assets held in a trustee capacity. Account groups which do not represent funds, are used to record fixed assets and long-term obligations that are not accountedi~or in a specific fund. The Town presently maintains the following governmental funds: General Fund, Highway Fund and Special Districts Funds, and the Capital Projects Fund. Fiduciary funds consist of a Trust and Agency Fund There are no proprietary funds. Account groups are maintained for fixed assets and long-term debt. Basis of Accounting The Town's governmental funds are accounted for on a modified accrual basis of accounting. Under the modified accrual bas~s, revenues are recognized when they become susceptible to accrual - that s, when they become "measurable" and "available" to finance expenditures to the current period Revenues are suscept b e to accrual include real property taxes, intergovernmental revenues (State and Federal aid) and operating transfers. Expenditures are generally recognized under the modified accrual basis of accounting in which recognition occurs when the related fund~iability is incurred An except on to th s general rule is unmatured interest on general long-term debt which is recognized when due. Investment Policy Pursuant to State law including Sections 10 and 11 of the General Municipal Law (the "GML"), the Town is generally permitted to deposit moneys in banks or trust companies located and authorized to do business in the State. All such deposits including special time deposit accounts and certificates of deposit in excess of the amount insured under the Federal Deposit Insurance Act, are required to be secured in accordance with the provisions of and subject to the limitations of Section 10 of the GML. The Town may also temporarily invest moneys in: (1) obligations of the United States of America; (2) obligations guaranteedby agencies of the United States of America where the payment of principal and interest are guaranteed by the United States of America; (3) obligations of the State of New York; (4) with the approval of the New York State Comptroller, in tax anticipation notes or revenue anticipation notes issued by any municipality, school district or district corporation other than those notes issued by the Town itself; (5) certificates of participation issued in connection with installment purchase agreements entered into by political subdivisions of thc State pursuant to Section 109-b(10) of the GML; (6) obligations ora New York pub~lic benefit corporation which are deemed lawful investments for municipalities pursuant to the enabling statute of such public benefit corporation; or (7) in thc case of moneys held m certain reserve funds established by thc Town pursuant to law, in obligations of the Town. All of the foregoing investments are required to be payable or redeemable at the option of the owner within such times as the proceeds will be needed to meet expenditures for purposes for which the moneys were provided and, in the case of obligations purchased with the proceeds of bonds or notes, shall be payable or redeemable in any event, at the option of the owner, within two years of thc date of purchase. Unless registered or inscribed in the name of the Town, such instruments and investments must be purchased through, delivered to and held in custody ora bank or trust company in the State pursuant to a written custodial agreement as provided by Section l0 of the GML. Thc Town Board has adopted an investment policy and such policy conforms with applicable laws of the State governing thc deposit and investment of public moneys. All deposits and investments of the Town are made m accordance with such policy. Budgetary Procedures The head of each administrative unit of the Town is required to file detailed estimates of revenues (other than real property~ taxes) and expenditures for the next fiscal year with the budget officer (Supervisor) on or before August 15"'. Estimates for each fire district situated within the Town must also be filed with the budget officer by this date. After reviewing these estimates the budget officer prepares a tentative budget which includes his recommendations. A bud-get message explaining the main features of the budget is also prepared at this time. The tentative budget is filed with the Town Clerk not later than the 30th of September. Subsequently thc Town Clerk presents the tentative budget to the Town Board at the regular or specialhearing which must be held on or before October 5th. The Town Board reviews the tentative budget and makes such changes as it deems necessary and that are not inconsistent with the provisions of thc law. Following this review process, the tentative budget and such modifications, if any, as approved by the Board become the preliminary budget. A public hearing, notice of which must be duly published in the Town's official newspaper, on the preliminary budget is generally required to be held on thc Thursday immediately following the general election. At such hearing, any person may express his or her opinion concerning the preliminary bud-get however, there is no requirement or provision that the preliminary budget or any portion thereof be voted on by members of the public. After the public hearing, thc Town Board may further change and revise the preliminary budget. The Town Board, by resolution, adopts the preliminary budget as submitted or amended no later than November 20th, at which time, the preliminary budget becomes the annual budget of the Town for the ensuing fiscalyear. Budgetary control during the year is the responsibility of the Supervisor who is assisted in this area by the Town Com. ptrollcr. Any chan~es or modifications to the annual budgdt, includingthe transfer of appropriations among line ~tems, must be approved by resolution of the Town Board. However the supervisor is authorized to transfer certain budgeted amounts w th~n departments. Budget Summaries for the 2011 and 2012 fiscal years may be found in Appendix A. 9 Financial Operations The Supervisor functions as the chief fiscal officer as provided in Section 2 of the Local Finance La.wi in this role, the Supervisor is responsible for the Town's accounting and financial reporting activities. In addition, the Supervisor is also the Towffs budget officer and must therefore prepare the annual tentative budget for submission to the Town Board. Pursuant to Section 30 of the Local Finance Law, the Supervisor has been authorized to issue or renew certain specific types of notes. As required by law, the Supervisor must execute an authorizing certificate which than becomes a matter of public record. Thc Town Board, as a whole, serves as thc finance board of the Town and is responsible for authorizing, by resolution, all material financial transactions such as operating and capital budgets and bonded debt. Town finances are operated primarily through the General and Special Revenue Funds. The General Fund receives most of its revenue from reaI proper~y tax and State aid. Current operating expenditures are paid from these funds subject to available appropriations. The Town also has refuse, sewer and wastewater districts, which are accounted for within separate funds. The prima~ sources of income for these districts comes from special assessments levied against district properties at the same time real estate taxes arc levied. Capital projects and equipment purchases are accounted for in special capital projects funds. The Town observes a calendar year (January 1 through December 31) for operating and reporting purposes. gevellue$ The Town receives most of its revenues from a real property tax on all taxable property situated within the Town and from State Aid. A summary of such revenues for thc five most recently completedfiscal years may be found in Appendix A. See also "New Tax Levy Limit Law" herein. Rea/Property Taxes See "Real Property Tax Information", herein. State Aid The Town receives financial assistance from the State. 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. Additionally, if the State should experience difficulty m borrowing funds in anticipation of the receipt of State taxes in order to pay State aid to municipalities and school districts in the State, including the Town, in this year or future years, the Town may be affected by a delay in the receipt of State aid until sufficient State taxes have been received by the State to make State aid payments. Based on the unaudited Annual Financial Report Update Document of the Town the Town received approximately 4. I% of its total General Fund operating revenue f~om State aid in 2011. There is no assurance, however, that State appropriations for aid to municipahrties w~l continue, either pursuant to existing formulas or in any form whatsoever. The State is not constitutionally obligated to maintain or continue such aid and in fact the State has drastica y reduced fund ng to mun c pa t es and schoo d str cts n the last several years in order to balance its own budget. Although the Town cannot predict at this time whether there will be any delays and/or reductions in State aid in the current year or in future fiscal years the Town may be able to mitigate the impact of any delays or reductions by reduc ng expenditures, ncreas ng revenues appropriating other available funds on hand, and/or by any combination of the foregoing 10 The following table sets forth the percentage of the Town's General Fund revenue comprised of State aid for each of the fiscal years 2007 through 2011, and, as budgeted, for 2012. Year Ended Total General Fund State and Federal Aid December 31: Village Revenue State Aid To Revenues (%) 2007 $21,789,930 $2,412,869 11.07% 2008 22,176,486 1,656,760 7.47 2009 24,294,262 I, 195,671 4.92 2010 26,082,580 1,216,047 4.66 2011 27,066,413 1,097,091 4.05 2012 (Budgeted) 27,885,224 l, 125,000 4.03 Source: Audited financial statements 2007 through 2011 and the adopted budget for the fiscal year ending December 31,2012. Expenditures The ma~o.r categories of expenditure for the Village are General Government Support, Public Safety, Transportation, ~tome & Community Services and Employee Benefits. A summary of the expend tums for the five most recently completed fiscal years and the estimatedexpenditures for the current fiscal year may be found in Appendix A. Employee Pension System · Substantially all employees of the Town are members of the New York State and L,~cal Emp, loyees' Retirement System and the 'New York State Local Po ce and Fire Retirement System (the Systems '] The System is a cost-sharing multiple public employer retirement system The orb gat bn of [mploye~rs employees to contribute and the benefits to employees are ~overned by the New York, State Retirement System andSocial Security Law (the "Retirement System Law"). The System offers a w de range of plans and benefits which are related to years of service and final average salary, vesting of retirement benefits, death and disability benefits and optional methods of benefit payments. All benefits genera y vest after five years of credited service. The System Law generally prowdes that all participat ng emp oyers n the System are jointly and severally liable for any unfunded amounts. Such amounts are co [ected through annual billings to all participating employers. Generally, all employees except certain part-time employees, part c pate n the System· The System is non-contributory with respect to members hired prior to July 27, 1976. All members hired on or after July 27, 1976 must contribute three percent of their gross annual sa ary towards the costs of ret rement programs until they attain ten years in the Retirement System, at such time contr but ons become voluntary. On t~ecember 10, 2009 the Governor signed into law the creation of a new T er 5, wh ch s effective for new System emplpyees hired after January 1, 21)10. New System employees n T er 5 will now contr bute 3% of'the r salaries. There is no provision for these contributions to cease for T er 5 employees after a certain period of service. Additionally, on March 16 2012 the Governor signed into law the new T er 6 p. ension .program, effective for new system employees hired after April 1, 201:2 The T er 6 eg s ation provides for Increased employee contribution rates of between 3% and 6% an increase in the retirement age from 62 years to 63 years, a readjustment of the~r~ension multiplier, and a change in the time period for final average salary calculation from 3 years to 5 years, t ler 6 employees will vest in the system after ten years of emp oyment and will cont nue to make employee contributions throughout employment· As a result of significant capital market declines in the recent past, in certain years the State's Retirement System portfolio has experienced negative investment performance and severe downward trends n market earnings. As a result ot the foregoing, it is anticipated that the employer contribution rate for the State's Retirement System in future years may be significantly higher than the minimum contribution rate established under the Retirement System Law. The Office of the New York State Comptroller has informed part cipating employers that due to the global economic crisis the rate of return of the pension fund has exper enced an unprecedented decline and consequently, for the next severa years, contribution rates may increase. The Employer Contribution Stabilization Program, signed into law on August 1 2010 gives local governments the option to amortize a portion of annual pension costs. Amortizat ons are pa d n equal installments over a ten-year period at an interest rate that is set annually. Under such legislation, oca governments and school districts that choose to amortize will be required to set aside and reserve funds for certain future rate increases. The legislation also authorizes local governments and school d str ct to establish reserve accounts to fund future payment increases that are a result of fluctuations in pension plan performance. 11 The Town is required to contribute an actuarially determined rate. The Town's contributions made to the System were equal to 100% of the contributions required for each year. The required contributions for the five most recently completed fiscal years are as follows: The Town is required to contribute an actuarially determined rate. The Town's contributions made to the System were equal to 100% of the contributions required for each year. The required contributions for the five most recently completed fiscal years are as follows: Contributions to the Retirement Systems Fiscal Year Amount Ending of December 31: Contribution 2007 ............................................................................ $ 1,947,914 2008 ............................................................................ 1,838,376 2009 ............................................................................ 1,656,415 2010 ............................................................................ 2,222,691 2011 ............................................................................ 3,136,267 2012 (Budget) ............................................................ 3,620,000 Other Post Employment Benefits The Town provides post-retirement healthcare benefits to various categories of former employees. These costs may be expected to rise substantially in the future. Accounting rules now require governmental entities, such as the Town, to account for post-retirement health care benefits as its accountsfor vested pension benefits. GASB Statement No. 45 ( GASB 45") described below requ'res such accounting. OPEB refers to "other post-employment benefits" meaning benefits other than pension benefits. OPEB consists primarily of health care benefits, and may include other benefits such as disability benefits and life insurance. Before GASB 45, OPEB costs were generally accounted for and managed as current expenses in the year paid and were not reported as a liability on governmental financial statements. GASB 45 requires municipalities and school districts to account for OPEB liabilities in the same manner as they already account for]pension liabilities. It requires them to adopt the actuarial methodologies used for pensions, with adjustments tot the different characteristics of OPEB and the fact that most municipalities and school districts have not set aside any funds against this liability. Unlike GASB Statement No. 27 which covers accounting for pensions, GASB 45 does not require municipalities or school districts to report a net OPEB obligation at the start. Unde? GArB 45, based on actuarial valuation, an annual required contribution ("ARC") is determined for each mumc~pahty or school district. The ARC is the sum of (a) the normal cost for the year (the present value of future benefits being earned by current employees) plus (b) amortization of the unfunded accrued liability (benefits already earnedby current and former employees but not yet provided for) using an amortization period of not more than 30 years. If a municipality or school district contr~utes an amount less than the ARC a net OPEB obligation will result, which is required to be recorded as a liability on its financial statements. GASB 45 does not require that the unfunded liability actually be amortized nor that it be advance funded, only that the municipality or school district account for its unfunded accrued liability and compliance in meeting its ARC. The Town presents its financial statements under a comprehensive statutory basis of accounting n accordance with principles prescribed by the Office of the State Comptroller ("OSC") of the State of New Yor~k. As of January 1~ 2010, the actuarial accrued liability ("AAL"), the portion of the actuarialpresent value of the tota! future benefits bas,ed on the employees' service rendered to the measurement date, is $66.6 million. ~The actuarial value of the,Plan s assets was $0 resulting in an unfunded actuarial accrued liability ("UAAL") of ~66.6 mi on. The Town s annual OPEB cost was $6.8 million and the ARC was $6.6 million. The Town is on a pay-as-you-go funding basis and paid $1.3 million to the Plan for the fiscal year ending December 31, 2010 resulting ~n a projected year-end Net OPEB obligation of $13.9 million. There is no authority in New York State to establish a reserve fund for the liability at this time. 12 The Town's unfunded actuarial accrued OPEB liability could have a material adverse tmpact upon the Town's finances and could force the Town to reduce services, raise taxes or both. There is no authorily in New York State to establish a reserve fund for the liability at this time. Actuarial Valuation is required every two years for OPEB pans w th more than two hundred members, or every three years if there are less than two hundred members Addit onal informat on about GASB 45 and other accounting rules applicable to municipalities and school districts may be obtained from GASB. REAL PROPERTY TAX INFORMATION Real Propert~ Taxes .The Town derives a major portion of its revenues from a tax on real pronertv (see "Statement of Revenues Exp?ndtture,s a~nd,Changcs in F~und. Balance" in Appendix B, herein.) Property taxes hcc6u~ted for approximately 82% of totm generm runo revenues, ~or the rtscal year ended 2011. On June 24, 2011, the New Tax Levy Limit Law was enacted, which imposes a tax levy limitat on upon the municipalities, school districts and fire districts in the State, including the Town without prov,[ding an exclusion fo,r, debt service on obligations issued by municipalities and fire districts, including the Town. See Tax Levy Limit Law,' herein. The following table sets forth the percentage of the Town's General Fund revenue (exclud ng other financing sources)comprised oT real property taxes for each of the fiscal years 2007 through 2011, and, as buclget, for the year ending December 3 I, 2012. Year Real Real Property Ended Total General Fund Property Taxes to December 31: Town Revenue Taxes Revenues (%) 2007 $21,789,930 $16,205,911 74.37% 2008 22,176,486 17,391,288 78.42 2009 24,294,262 20,165,953 83.00 2010 26,082,580 21,532,952 82.55 2011 27,066,413 21,734,453 80.30 2012 (Budge) 27,885,224 22,412,761 80.38 Source: Audited financial statements 2007 through 2011 and the adopted budget for the fiscal year ending December 3 I, 2012. The following table presents the tota tax levy, by purpose, with adjustments and collection performance for each of the last five fiscal years. Tax Levy and Collection Record 2008 2009 Total Tax Levy ...................... $103,216,661 $108,610,530 Amount Collected .................. 100,030,520 104,970,256 R~umed to County Amount ...............................3,186, I41 3,640,274 Percentage ............................ 3.09% 3.35% Uncollected at End of Year of Levy ..............................None None 2010 2011 2012 $110,942,393 $114,576,777 $117,274,147 106,195,135 109,539,295 NA 4,747,258 5,037,482 NA 4.27% 4.40% NA None None NA 13 Tax Collection Procedure Property taxes for the Town are collected by the Town tax receiver. Such taxes are due and payable in equal installments on December I and May l0 but may be paid without penalty by January 10 and May 31 respectively. Thepenalty added to delinquent taxes is one-twelfth the rate of interest determined by the State Commissioner of Taxation and Finance. The rate is determined each year by July 15 based on the one-year constant maturityyield index £or United States Treasury securities for the quarter-year ending on the immediately preceding June30. The rate is effective for a twelve month period commencing August I each year and in no event will be less than ten per centum per annum. The Town receives its full levy before the end of its fiscal year. Uncollected amounts are not segregated by the Town tax receiver, and any deficiency in tax collection is the County's liability. Tax Levy Limit Bill Prior to the enactment o£ Chapter 97 of the Laws of 2011 (the "New Tax Levy Limit Law") on June 24, 011, all the taxable real property within the Town had been subject to the levy of ad valorem taxes to pay the bonds and notes o£the Town and interest thereon without limitation as to rate or amount. However, the New Tax Levy Limit Law imposes a tax levy limitation upon the Town for any fiscal year commencing after Mag 31, 2012, continuing through May 31 2016 or later as provided in the New Tax Levy Limit Law, w thout prov ding an exclusion for debt service on obligations issued by the Town. As a result, the power o£the Town to levy real estate taxes on all the taxable real property within the Town, without limitation as to rate or amount, may or may not be subject to statutory limitations according to the formulas set forth in New Tax Levy L m t Law The actual effect of the NewTax Levy Limit Law would depend upon the interpretation of such law by a court of competent jurisdiction in the event of a legal challenge. The following is a brief summary of certain relevant provisions of New Tax Levy L m t Law. The summa~, is not complete and the full text of the New Tax Levy Limit Law should be read in order to understand the dermis and implications thereof. The New Tax Levy Limit Law imposes a limitation on increases in the real property tax levy of the Town, subject to certain exceptions. The New Tax Levy Limit Law permits the Town to increase its overa rea property tax levy over the tax levy of the prior year by no more than the "Allowable Levy Growth Factor", which ~s the lesser of one and two-one hundredths or the sum of one plus the Inflation Factor; provided, however that in PR case shall the levy growth factor be less than one. The "Inflation Factor" is the quotient of: (i) the average of t e 20 National Consumer Price Indexes determined by the United States Department of Labor for the twelve- month period ending six months prior to the start of the coming fiscal year minus the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twe ye-month period ending six months prior to the start of the prior fiscal year, divided by: (ii) the average of the Nat onal Consumer Price lndexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the prior fiscal year with the result expressed as a decima to four places The Town is required to calculate its tax levy limit for the upcoming year in accordance w th the prov s on above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The New Tax Lev~y Limit Law sets forth certain exclusions to the real property tax levy lira tat on of the Town, including exctusions for certain portions of the expenditures for retirement system contributions and tort judgments payable by the Town. The Board of Trustees may adopt a budget that exceeds the tax levy limit for the coming flsca year, only if the governing board of the Town first enacts, by a vote of at least sixty percent of the total-voting power of the Board of Trustees, a local law to override such limit for such coming fiscalyear. The New Tax Levy Limit Law does not contain an exception from the levy lira tat on for the payment of debt service on either outstanding general obligation bonds or notes of the Town or such indebtedness incurred after the effective date of the NewTax Levy L~mit Law. As such~ there can be no assurances that the New Tax Levy Limit Law will not come under legal challenge for violating ( ) Art c e VIII, Section 2 of the State Constitution for not providing an exception for debt service on obhgatmns issued prior to the enactment of the New Tax Levy Limit Law (n) Article VII1, Section 10 of the State Constitution hyeffectively eliminat ng the exception for debt service to general real estate tax limitations, and (iii) Article VIII, Section 2 of the gtate Constitution by limiting the pledge of its faith and credit by a municipality or schoo d str ct for the payment of debt service on obligations issued-by such municipality or school district. 14 Tax Rates (Per $100 Assessed Valuation) Fiscal Year Ending December 31: 2008 2009 2010 2011 2012 General ~ Townwide .............. $160.22 $184.44 $196.97 $199.96 $206.45 General - Outside Village ...... 7.84 6.87 8.69 7.57 5.69 Highway ................................. 41.74 39.75 38.72 44.32 46.11 Large Taxable Properties 2011-2012 Assessment Rolla Assessed Name Type Valuation Peconic Landing at Southold .............................................. Commercial $ 1,357,704 LILCO, LIPA, Marketspan, Keyspan ................................ Utility 1,674,815 Village of Greenport-Power Plant ......................................Utility 585,000 Fishers lsland Dev. Corp ................................................... Residential Development 457,900 Robins Island Holding LLC ............................................... Private Lands 330,500 Alan Cardinale ................................................................... Shopping Center 297,500 North Fork Bank ................................................................ Bank Building 234,131 Damianos, Herodotus ......................................................... Vineyard 234,000 New York Telephone ....................................................... Utility 173,862 Levin Family Limited Partnership ..................................... Motel & Restaurant 124,950 Anderson, Bradley & Francesca ........................................ Farmland & Private Lands 120,400 Norris, Susan ..................................................................... Various Properties 111,800 Laurel Links & Country Club ............................................ Country Club 107,700 Kimogenor Pt Co .............................................................. Co-Op 94,600 Driftwood Cove ................................................................ Co-Op 90,000 a. Assessment Roll established in 2011 for levy and collection of taxes during 2012 Fiscal Year. b. Represents approximately 5.53% of the total taxable assessed valuation of the Town for 2012. S5.994.86~2~ LITIGATION The Town of Southold is subject to a number of lawsuits in the ordinary conduct of its affairs. For the most part, any potential adverse decisions in such suits, either individually or in the aggregate, are not likely to have a material adverse effect on the Town. There are certain matters worthy of special mention: Nocro Ltd and The Heritage at Cutchogue LLC v. Scott A. Russel, et al. - This action seeks to nullify certain actions of the Town Board and/or the Planning Board including the adoption of residential subdivis on regulations and certain resolutions pertaining to the State Environmental Quality Review Act, as well as compensatory damages in the sum of $40,000 000 and punitive damages based upon allegations that the Town defendants conspired to deprive it of certain constitutional rights. Insurance coverage may be available for potential liability for alleged compensatory damages. The Suffolk County Supreme Court dismissed a act ons against each govemmental officer named personally in the suit. This decision was affirmed by the Second Department and the matter will proceed to discovery. The Town has denied all wrongdo ng and ntends vigorously to contest these claims. 15 East End Resources, LLC v. Town of Southold Planninl~ Boardx et al - This act on ar sas from a residential site plan application pending before the Town of Southold Planmng Board, seeking the approval of a multi-unit planned retirement commumty (the "Application"). Plaintiff/Petitioner alleges that the Town, and ts various agencies, have systematically delayed and sought to defeat the approval of-the Application In th s action, Plaintiff/Petitioner asserts e~ght claims seeking declaratory relief compell ng the approva of the Application as well as compensatory relief in the amount of $20 million as a result of a'l eged f~dera and state const tutional violations. The matter is now in discovery. The Town intends vigorously to dkfend this action and to contest all asserted claims. Yu~ et al. v. Town of Southold et al. - This action seeks damages in the sum of $10 million against the Town and its various agencies. The claimants allege that the Town and its agenc es, beginn ng in 1985 and continuing forward participated in bias, liable and slander among other actions, that a egedly v ol-ated plaintiffs Civil anffother constitutional rights. Discovery is complete and the Town intends to move for summary judgment. The Town intends to continue to vigorously contest these claims and will deny all wrongdoing. Kern-Guerriere~ et al v. Town of Southold, et al. - Plaintiffs have filed a §1983 Civil Rights action on ?/I.2/11 ~se.eking~$20 000 000 in compensatory and punitive damages. Plaint ffs' c a m that the Town of ~outhold rodceDepartment falsely arrested charged and imprisoned Pla nt ffs n v o at on of their r ghts The Town intends to vigorously defend this action. FINANCIAL ADVISOR Munistat Services, Inc. has assisted the Town as financial advisor in certain mat~ers with respect to the preparation of this Statement. RATING · Moody's Investors Services has assigned its rating of"Aa2" to the outstanding bonds of the Town Th s rating reflects only the view of such rating agency and an explanation of the significance of such ratin should be obtained from Moody's. There can be no assurhnce that sdch rating will not-be revised or w thdranwgn, if in the ~odwg~ent of market price and the availability of a secondary market for the outstanding bonds and notes of the 16 Balance Sheet General Fund ASSETS Cash and Investments Taxes Receivable Accounts Receivable Due From Other Funds State and Federal Aid Receivables Due From Other Governments Supply Inventory Prepaid Expenses Total Assets LIABILITIES AND FUND EQUITY Accounts Payable Due to Other Funds Due to Component Units Due to Other Governments Deferred Revenues Total Liabilities Fund Balances - Reserved: Nonspendable Fund Balance Encumbrances Insurance claims Supply Inventory Prepaid Expenses Fund Balances - Unreserved: Designated - Ensuing Year's Budget Undesignated Total Fund Equity Total Liabilities and Fund Equity Fiscal Year Ending December 31: 2010 2011 13,276,530 $ 61,006 2,563 118,091 1,550,265 2,637 420,963 13,606,359 905 888,251 553,288 277,607 1,035,603 2,624 694,357 15,432,055 $ I7,058,994 926,611 $ 2,357,568 1,982,551 2,772,316 459,393 2,139 1,179 4,638,260 3,882,585 8,008,954 9,013,648 27,961 1,149,498 2,637 420,963 696,980 1,499,060 1,914,000 3,908,042 7,423,101 15,432,055 1,815,989 4,033,317 8,045,346 $ 17,058,994 Sources: 2010 Audited Financial Report of the Town 2011 Unaudited Annual Update Document Table itself NOT audited. Town of Southold A1 Statement of Revenues, Expenditures and Changes in Fund Balance General Fund Town Wide Fiscal Year Ending December 31: 200~7 2008 2009 2010 201~1 Real Property Tmxcs $ 16,205,911 $ 17,391,288 $ 20,165,953 $ 21,532,952 $ 21,734,453 Other Real Properiy Tax Items 92,606 94,113 63,585 84,201 85,765 Non-Property Tax Items 683,873 751,073 818,273 885,473 885,473 Departmental Income 411,790 611,598 461,257 416,600 529,774 Intergovernmental Charges 329,202 262,977 356,548 222,657 324,340 Use of Money & Proper~ 764,912 496,395 223,229 306,952 270,072 Licenses & Permits 253,494 244,910 228,699 261,339 269,552 Fines & Forfeitures 155,477 169, I 19 210,209 225,311 184,389 Sale of Property & Comp. for Loss 148,283 159,726 288,425 300,228 1.024,171 Miscellaneous Local Sources 185,945 190,816 117,182 399,402 310,386 State Aid 2,412,869 1,656,760 1,195,671 1,216,047 1,097,09 I Federal Aid 145,568 147,711 165,231 231,418 350,947 Total Revenues 21,789,930 22,176,486 24,294,262 26,082,580 27,066,413 Expenditures: General Government Support Public Safety Public Health Transportation Economic Assistance & Opportunity Culture & Recreation Home & Community Services Employee Benefits Debt Service Principal & Interest 5,234,683 5,479,661 5,548,092 5,125,064 5,338,847 7,816,643 8,398,429 8,599,974 8,626,229 9,247,049 35,238 35,238 35,138 33,788 33,788 550,907 470,797 486,434 424,568 474,404 1,064,904 1,147,293 1,139,753 1,118,864 1,165,354 345,540 452,588 335,993 282,289 277,280 417,654 426,656 401~114 402,959 419,978 6,172,279 7.276.770 4,980,929 5,911,381 9,454,806 787,775 973,787 1,053,169 824,417 1,189,020 Total Expenditures 22,425,623 24,661,219 22,580.596 22,749,559 27,600,526 Excess(Deficiency) of Revenues Over Expenditures Operating Transfers In Operating Transfers Out Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balance Beginning of Year Adjustments (635,693) (2,484,733) 1,713,666 3,333,021 (534,113) 2,738,349 3,493,057 3,719,544 (2,403,563) (2,729.790) (532,299) (453,613) (2,524,720) 334,786 763,267 (532,299) (453,613) 1,194,824 (300,907). 0,721,466) 1,181,367 2,879,408 660,711 5,384,699 5,083,792 3,362,326 4,543,693 7,423,101 Fund Balance End of Year (38,466) $ 5,083,792 $ 3,362,326 $ 4,543,693 $ 7,423,101 $ 8,045,346 Sources: Audited Financial Reports of the Town (2007-2010) & Unaudited Annual Update Document for 201 I Table itself NOT audited Town of Southold A2 Real Property Taxes Other Real ProperW Tax Items Departmental Income Use of Money & Property Licenses & Permits Sale of Property & Comp. for Loss Miscellaneous Local Sources State Aid Federal Aid Statement of Revenues, Expenditures and Changes in Fund Balance Highway Fund Town Wide Fiscal Year Ending December 31: 200~7 2008 2009 2010 201~1 $ 4,027,695 $ 4,316,095 $ 4,137,746 $ 12,722 11,777 3,057 142,501 61,374 6,558 10,362 13,190 7,788 29~213 7,416 246 13,703 106 296,263 326,820 318,906 4,518,756 4,750,375 4,474,407 4,032,425 $ 4,586,897 6,477 7,148 250 5,634 6,584 6,914 10,410 1,419 9,950 343,024 347,521 120,630 240,253 Expenditures: General Government Support Transportation 3,437,186 Employee Benefits 510,185 Debt Service Principal & Interest 17,001 Total Expenditures 3,964,372 Excess (Deficiency) of Revenues Over Expenditures 554,384 Operating Transfers In 21 I Operating Transfers Out (794,696) Total Other Financing Sources (Uses) (794,485) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses Fund Balance Beginning of Year Fund Balance End of Year $ 4,516,773 5,208,763 6,884 6,283 2,959,459 3,175,947 1,484,617 630,033 98,070 221,656 135 6,203 3,543,617 3,132,768 498,813 1,433,883 40,228 41,473 4,082,793 4,614,327 4,549,030 4,033,919. 667,582 (139,920) (32,257) 1,174,844 (823,241) (78,917) (30,000) (891,481) (823,241) (78,917) (30,000) (891,481) (240,101) (155,659) (218,837) (62,257) 283,363 L319,322 1,079,221 923,562 704,725 642,468 1,079,221 $ 923,562 $ 704,725 $ 642,468 $ 925,831 Sources: Audited Financial Reports of the Town (2007-2010) & Unaudited Annual Update Document for 201 I 'I'able gself NOT audited. Town of Southold A3 Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Government Funds Fiscal Year Ending December 31: 200'/ 2008 2009 2010 201~1 Real Proper~Taxes $ 2,831,897 $ 2,861,630 $ 2,815,131 $ 3,745,198 $ 3,373,173 Other Real Property Tax Items 4,581 6,415 3,375 4,245 1,364 Non-Propecty Tax Items 234,091 256,296 276,999 300,987 314,260 Departmental Income 2,147,502 2,387,861 2,105,725 2,096,830 2,501,552 Intergovernmental Charges 905 0 Use of Money & Property 94,361 42,936 7,379 9,005 15,522 Licenses& Permits 169,338 167,760 185,257 144,470 168,084 Sale of Proper~ & Comp. for Loss 216,437 212,655 287,643 312,569 337,642 Miscellaneous Local Sources 13,283 889 738 30,801 State Aid 93,135 216,273 145,768 156,581 180,069 Federal Aid 210,175 144,838 67,974 304,342 197,389 Total Revenues 6,015,705 6,297,553 5,895,251 7,074,965 7,119,856 Expenditures: General Government Support 87,970 267,423 61,807 69,800 2,792,017 Public Safety 948,31 I 1,056,786 1,094,034 1.132,118 1,283,577 Public Health 7,370 7,370 7~370 0 ltome & CommuniW Services 3,] 73,114 3,322,615 3,155,421 3,292,453 778,184 Employee Benefits 468,989 470,182 I,164,035 1,163,979 606,913 Debt Service Principal & Interest 530,796 651,896 661,125 672,725 987,748 Total Expenditures 5.216,550 5,776,272 6,143,792 6,331,075 6,448,439 Excess (Deficiency) of Revenues Over Expenditures 799,155 521,281 (248,541) 743,890 671,417 Operating Transfers In Operating Transfers Oul ( 874, I 15) (6 } 8,408) ( 139,031 ) (149,234) (610,487) Total Other Financing Sources (Uses) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (874,115) (618,408) (139,031) 049,234) (610,487) (74,960) (97,127) (387,572) 594,656 60,930 1,238,789 Fund Balance Beginning of Year 1,203,792 1,128,832 1,031,705 644,133 Adjustments Fund Balance End of Year $ 1,128,832 $ 1,031,705 $ 644,133 $ (58,775) 1,238,789 $ 1,240,944 (I) Includes the following funds: General Fund PaCt Town, Special Grant Fund. East-West Fire Protection Fund, Southold Wastewater District, Fishers Island Sewer District and Solid Waste Management Sources: Audited Financial Reports of the Town (2007-2010) & Unaudited Annual Update Document lbr 201 I Table itself NOT audited. Town of Southold A4 Fund Pund TOWN OF SOUTHOLD APPENDIX B ANNUAL FINANCIAL REPORT UPDATE DOCUMENT FOR THE FISCAL YEAR ENDED DECEMBER 31,2011 ADDITIONAL INFORMATION Additional information may be obtained upon request from the office of the Supervisor, Town of Southold, 53095 Route 25, P.O. Box 1179 Southold, New York 11971 telephone number 6311765-1800 or from the office of Mun stat Serv ces, Inc., 12 Roosevelt Avenue, Port Jefferson Stat on, New York 11776, telephone number 631/331-8888. Any statements in this Statement involving matters of opinion or estimates, whether or not expressly so stated, are intended as such and not as representations of fact. No representation is made that any of such statements will be realized. This Statement is submitted only in connection with the Town's "Undertakin~ to Provide Notices and Information"pursuant to Rule 15c2-12 as~promulgated by the Securities and Exchange ~2ommission and may not be reproducedor used in whole or in part tot any other purpose. By: s/s ~ Supervisor Town of Southold Southold, New York May 25, 2012 17