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2013 Annual Financial & Operating Information
STATEMENT OF ANNUAL FINANCIAL AND OPERATING INFORMATION TOWN OF SOUTHOLD SUFFOLK COUNTY, NEW YORK DATED: MAY 30, 2013 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 James Dinizio, 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, Town Comptroller Martin D. Finnegan, Esq., Town Attorney George R. Sullivan, Receiver of Taxes FINANCIAL ADVISOR MUNISTAT SERVICES, INC. Municipal Finance Advisory Service ] 2 Roosevelt Avenue Port Jefferson Station N.Y. 11776 (631)331-888 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, includin~ the cover page, has been prepared by the Town of Southold, Suffolk County, New York (the "Town", the County", and the "State", respectively) in connection with its obligation to prepare and submit such material in accordance with the Continuing Disclosure Undertakings and the Offimal Statements having been prepared in connection with the sale and Issuance of the following outstanding bond issues: $ 2,380,000 Refunding Serial Bonds - 2005 $ 3,000,000 Fishers Island Ferry District Serial Bonds'- 2005 $14,650,000 Public Improvement Sertal 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 with certain information concerning its economy and governmental organization, its indebtedness, current ma3or 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 1640. The Village of Greenport is located whopy 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 substantial shopping facilities available at Greenport, at various shopping centers within the Town, and at Riverhead JJust to the west. Some commercial services are avatlable within the Town m the hamlets of Southold, Cutchogue and Mattituck. Agriculture has been a major industry in the Town since its origins. In recent years, farm crops have gradually evolved from basic production to nursery crops including shrubs, sod, potted plants and other ornamentals. A substantial portion of these products are shipped by ferry across Long Island Sound for distribution throughout New England. A number of vineyards have been estabhshed and wine-making is an important industry. Fishing and fish processing are now growing tndustries due to improved transportation facilities. The Town is also a major summer resort area, utilizing bays, inlets and Long Island 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 with 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 Island Power Authority; gas service is provided by National Grid. Fire protection is the responsibility of volunteer fire and fire protection districts. The Town provides its own police protection. In the Village of Greenport, electric service and fire protection are provided by the Village. 3 Impact of Superstorm Sandy on the Town During the recent storm, commonly referred to as Superstorm Sandy (the "Storm"), the Town was not affected as much as other parts of the State. The Storm's winds caused many trees to fall resulting in power outages to most areas and significant debris removal needed to be undertaken by the Town. In some communities, power was lost for up to one week. As a result, many businesses and schools were not able to open for at least a week following the Storm. Water is provided by the Suffolk County Water Authority and was not interrupted. Suffolk County provides limited areas of the Town with sewer services and service was not interrupted. Gas is provided by National Grid and electric is provided by the Long Island Power Authority to Town residents. Most expenses relating to debris removal, emergency protective measures, repairs to roads, parks, utility systems, and ggo~vernment buildings are eligible for financial assistance from the Federal Emergency Management Agency ("FEMA" . The Town estimates that the total costs for such expenses was appproximately $500,000. FEMA established a presence in the area, and it is expected that federal funding will be available to meet all verified claims. Traditionally, FEMA reimburses 75% of eligible costs and the remaining 25% is received from other sources such as State assistance or local government cost sharing. The Town does not anticipate having to borrow its local share. 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 conflict with existing laws as enacted by the State. The legislative power of the Town is vested in the Town Board, which consists of 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 Town's assessment roll as their basis for taxation of property located within the Town. 4 Employees The Town provides services through approximately 202 full-time, 49 part-time, and 13 seasonal employees, some of whom are represented by organized 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 Name of Union Membership Contract Expires Civil Service Employees Association 145 12-31-12* Police Benevolent Association 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 Southold Suffolk County New York State 1970 16, 804 1,127,03 0 18,241,391 1980 19,172 1,284,231 17,557,288 1990 19, 836 1,321,977 17,990,45 5 2000 20,599 1,419,369 18,976,457 2010 23,175 1,518,475 19,541,453 Source: U.S. Bureau of the Census. Income Data Per Capita Money Income 1990 2000 2010 201]* Town of Southold $19,037 $27,619 $ 41,450 $41,657 County of Suffolk 18,481 26,577 35,411 35,609 State of New York 16,501 23,389 30,791 31,206 Median Household Income 1990 2000 2010 2011* Town of Southold $35,392 $49,898 $ 83,240 $72,005 County of Suffolk 49,128 65,288 84,235 84,889 State of New York 32,965 43,393 55,217 55,972 Source: United State Bureau of [he Census *Note~. Based on American Community Survey 3-Year Estimates (2009-2011) 5 Unemployment Rate Statistics Unemployment statistics are not available for the Town as such. The smallest area for which 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 necessanly representative of the County or vice versa. Suffolk New York Coun State Annual Averages: 2008 4.9% 5.4% 2009 7.3 8.4 2010 7.6 8.9 201 ] 8.9 8.0 2012 7.8 8.6 2013 (3 months) 7.8 8.8 Source. Department of Labor, State of New York Selected Listing of Larger Employers Approximate Name Tyne No. of Emnloyees Plum Island ADC* U.S. Govt. Facility 360 Eastern Long Island Hospital Hospital 358 Mattituck-Cutchogue UFSD Public School 375 Town of Southold Local Government 264 Peconic Landing Life Care Community 210 Southold UFSD Public School 174 San Simeon by the Sound Nursing Home 190. Greenport UFSD Public School 116 Village of Greenport Local Government 125 *Note: As of the date of this Statement, the U.S. General Services Administration is undertaking measures to study the decommission and potential sale of the Plum Island and PtADC facilities pending completion of the replacement National Bio and Agro-Defense Facility ("NBAF") in Manhattan, Kansas, anticipated in 2014. 6 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 30, 2013) Fiscal Year State Ending Assessed Equalization Full May 31: Valuation Rate Valuation 2009 $ 108,991,562 1.05% $10,380,148,761 2010 109,089,429 1.06 10,291,455,566 2011 108,465,500 1.09 9,950,963,303 2012 108,282, 986 1.11 9, 75 5,223 ,963 2013 107,853,985 1.15 9,378,607,391 Total Five Year Full Valuation $49,756,398,986 Average Five Year Full Valuation 9,951,279,797 Debt Limit - 7% of Average Full Valuation 696,589,585 Inclusions: Outstanding Bonds: General Purposesa 39,960,000 Other 0 Sub-Total 3 9, 960, 000 Bond Anticipation Notes 1.858,000 Total Inclusions 41 818.000 Exclusions: Appropriations for Outstanding Bonds 775,000 Appropriations for Outstanding Notes 300,000 Other Exclusions 0 Total Exclusions 1,075,000 Total Net Indebtedness 40.743.000 Net Debt Contracting Margin $656.116.585 Percent of Debt Limit Exhausted 5.84% a. Includes $27,974,100 issued for the preservation of open space. See "Community Preservation Fund" herein. 7 Treud of Town Iudebtedness The following table represents the outstanding indebtedness of the Town at the end of the last five preceding fiscal years. Fiscal Year Ending December 3 I 2008 2009 2010 2011 2,012 Debt Outstanding End of Year: Bonds $32,175,000 $35,418,000 $33,375,000 $44,385,000 $41,730,000 Bond Anticipation Notes 6,579,100 9,150,800 6,218,000 2,992,000 1,494,000 Total Debt Outstanding 8.754.100 $41.568.800 $39.593.000 47.377.00 43.224.000 Details of Short-Term Indebtedness Outstanding Bond Anticipation Notes Amount Maturi Pumoses Outstandin¢ 04/10/2014 Various Purposes $1,058,000 08/30/2013 Various Purposes 800,000 Total 1.85 8.000 Debt Service Requirements -Outstanding Bonds Fiscal Year Ending December 31: Principal Interest Total 2013 $ 2,545,000 $ 1,568,124 $ 4,1 13,124 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 63147 2.283.147 Totals $41.730.000 14.526.077 56256.077 a. Includes $27,974,100 for the presentation of open space. See "Community Preservation Fund" herein. Does not reflect payments made [o date. 8 Calculation of Estimated Overlapping and Underlying Indebtedness Applicable Applicable Overla in Date of Percentage Total Net Unitsp g Report Applicable Indebtedness Indebtedness County of Suffolk 12-OS-12 3.71% $60,940,460 $50,868,695 Village ofGreenport 11-30-11 100.00 7,896,700 7,305,500 School Districts' Fishers Island 06-30-12 100.00 112,705 112,705 Greenport ]2-IS-12 100.00 7,000,000 6,300,000 Mattituck-Cutchogue 12-15-12 98.49 25,341,477 23,314,159 New Suffolk Common 06-30-11 100.00 0 0 Oyster Ponds 06-30-1 1 100.00 0 0 Southold 12-16-12 100.00 5,955,000 5,955,000 Fire District Cutchogue 12-31-11 100.00 0 0 East Marion 12-31-11 100.00 48,972 48,972 Fishers Island 12-31-11 100.00 0 0 Mattituck 12-31-11 100.00 1,312,042 1,312,042 Orient 12-31-11 100.00 0 0 Southold 12-31-11 100.00 900,000 900.000 Totals $109 507.356 $96 117.073 Sources. Annual Financial Reports on file with [he Office of [he State Comptroller, or more recently published Off cial Statements. Debt Ratios (As of May 30, 2013) Percentage Amounts Per Caoita° Of Full Value` Total Direct Debt $41,818,000 $1,804 0.45% Net Direct Debt 40,743,000 1,758 0.44 Total Direct & Applicable Total Overlapping Debt 151,325,356 6,530 1.61 Net Direct & Appl[cable Net Overlapping Debt 136,860,073 5,906 1.46 a. Does not include the Bonds. b. The current population of the Town is 23,175 (U.S. Census). c. The full valuation of taxable reel property in [he Town for 2012-13 is $9,378,607,391. 9 Authorized But Unissued Items The following Bonds are authorized but unissued: Date Amount Authorized Pur ose 08-28-07 Open S ace Preservation: Agricultural Lands $ 3,100,000 P 500 000 08-16-1 ] Stormwater Mitigation . Total._ _3_0 00_ Capital Program The Town annually adopts a three year Capital Improvement Plan. Protects 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 2013-2015 is set forth below: Denartment 2013 2014 2015 General Town $2,828,704 $ 28,0000 $ -0- Highway Dept 30,000 _0- -0- Solid Waste District 3,500 -0- Total ~ 2.862.204 28 0 Sources Appropriations $ 247,065 $ 28,0 00 -0- Town Debt 2,615.139 Total 2 8 2 2 4 28 0 -0- Community Preservation Fund In 1998, the voters of the five East End towns (East Hampton, Riverhead, Shelter Island, Southampton, and Southold) approved a referendum creating the Community Preservation Fund, (the "Fund") which ~s a conservation program to preserve open space and farmland in the five towns. The fund is financed by a 2% tax on real estate sales. Thts is 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 development 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 acgmsition through the issuance of bonds, Section 64e of Town Law regduires the preparation of a report by or on behhalf of the Town pro ected rreve uesd of the rFundhduri~ugchhe per odnofs indeb ednessa~ ao accountings of alldothernindebtedness incurred against the Fund to be repaid for the same period, and a finding that there will be sufficient revenue to repay such indebtedness in its entirety from the Fund. 10 The following represents the annual revenues of the Fund for the five most recently completed fiscal years and the current budget: Fiscal Year Ending Total Revenues December 31: 2008 $ 5,070,207 2009 6, 5 8 8, 824 2010 4, 867,962 201 1 4,368,459 2012 2013 (Budget) 3,916,000 As of the date of this Official Statement, there are $27,974,100 in bonds outstanding the debt service on which is expected to be paid for by the Fund. The following represents the annual debt service requirements on the outstanding bonds ongma)ly issued for the purposes of preserving open space; it does not reflect payments made to date. Fiscal Year Ending Principal Interest Total December 31: 2013 $ 1,282,300 $ 1,095,139 $ 2,377,439 2014 1,297,300 1.,051,812 2,349,112 2015 1,338,500 1,006,692 2,345,192 2016 1,363,500 959,473 2,322,973 2017 1,433,200 909,454 2,342,654 2018 1,474,400 854,986 2,329,386 2019 1,493,400 799,514 2,292,914 2020 1,518,400 743,312 2,261,712 2021 1,564,600 685,836 2,250,436 2022 1,589,600 627,086 2,216,686 2023 1,664,200 565,875 2,230,075 2024 1,720,300 501,383 2,22],683 2025 1,750,300 433,547 2,183,847 2026 1,780,300 363,214 2,143,514 2027 1,820,300 290,447 2,110,747 2028 1,878,600 213,951 2,092,551 2029 1,918,600 135,430 2,054,030 2030 1.958.600 55 155 2 013.755 Tota]s $28 846.400 X11 292.302 $40 138.7 The Town has enacted a debt service policy that is reviewed annually and approved by the Town Board. The Town Board has determined that an appropriate amount of fund balance should be maintained in the Fund in order to meet the Town's obligation to repay the bonded indebtedness. As such, the Town has set aside the current and ensuing year's debt service to ensure that there is adequate coverage in the Fund. 11 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 Landfill 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 landfill, 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 esrimated to be between $25,000 and $28,000 per year from 2013 through 2015. The Town paid $22,430 for such costs in 2012 and will continue to pay these costs m the future. Actual costs associated with the capping totaled $7,681,720. Financing for closure activities was provided in part 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 by the State Comptroller. The financial records of the Town are audited by independent accountants. The last such audit made available for public inspection covers the fiscal year ended December 31, 2011. 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 complied with the requirements of various State and Federal statutes. A summary of the 2012 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 hmrtations. There are three basic fund types: (1) governmental funds that are used to account for basic services and capital projects; (2) proprietary funds that account for operations of a commercial nature; and, (3) fiduciary funds that account for assets held to a trustee capacity. Account groups, which do not represent ffuunds, are used to record fixed assets and long-term obligations that are not accounted for 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 basis, revenues are recognized when they become susceptible to accrual -that is, when they become "measurable" and "available" to finance expenditures to the current period. Revenues are susceptible 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 liability is incurred. An exception to this genera] rule is unmatured interest on general long-term debt which is recognized when due. 12 Investment Policy Pursuant to State law, including Sections ] 0 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 guaranteed by 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 anttmpation 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 pparticipation issued in connection with installment purchase agreements entered into by political subdivisions of the State pursuant to Section 109-b(10) of the GML; (6) obligations of a New York public benefit corporation which are deemed lawful investments for municipalities pursuant to the enabling statute of such public benefit corporation; or (7) in the case of moneys held m certain reserve funds established by the 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 the 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 of a bank or trust company in the State pursuant to a written custodial agreement as provided by Section 10 of the GML. - The Town Board has adopted an investment policy and such policy conforms with applicable laws of the State governing the deposit and investment of publtc 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 wtth the budget officer (Supervisor) on or before August l~ 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 budget 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, the Town Clerk presents the tentative budget to the Town Board at the regular or special hearing 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 the 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 the Thursday immediately following the general election. At such hearing, any person may express his or her opinion concerning the prehminary budget; 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, the Town Board may further change and revise the preliminary budget. The Town Boazd, 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 fiscal year. Budgetary control during the year is the responsibility of the Supervisor who is assisted in this area by the Town Comptroller. Any changes or modifications to the annual budget, including the transfer of appropnanons among line items, must be approved by resolution of the Town Board. However, the supervisor is authortzed to transfer certain budgeted amounts within departments. Budget Summaries for the 2012 and 2013 fiscal years may be found in Appendix A. 13 Financial Operations The Supervisor functions as the chief fiscal officer as provided in Section 2 of the Local Finance Law; in this role, the Supervisor is responsible for the Town's accounting and financial reporting activities. In addition, the Supervisor is also the Town s 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. The Town Board, as a whole, serves as the 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 real roperty 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 primary sources of income for these districts comes from special assessments levied against district properties at the same time real estate taxes are 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. Revenues 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 the five most recently completed fiscal years may be found in Appendix A. See also "Tax Levy Limit Law" herein. Real 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 in 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 3.96% of its total General Fund operating revenue from State aid in 2012. There is no assurance, however, that State appropriations for aid to municipalities will continue, either pursuant to existing formulas or in any form whatsoever. The State is not constitutionally obligated to maintain or continue such aid and, m fact, the State has drastically reduced funding to municipalities and school districts in 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 reducing expenditures, increasing revenues, appropriating other available funds on hand, and/or by any combination of the foregoing. 14 The following table sets forth the percentage of the Town's General Fund revenue comprised of State aid for each of the fiscal years 2008 through 2012, and, as budgeted, for 2013. Year Ended Total General Fund State and Federal Aid December 31: Revenue State Aid To Revenues 2008 $22,176,486 $1,656,760 7.47% 2009 24,294,262 1,195,671 4.92 2010 26,082,580 1,216,047 4.66 201 1 27,207,336 1,133,604 4.17 2012 (Unaudited) 26,860,318 1,063,537 3.96 2013 (Budget) 28,471,228 994,376 3.49 Source: Audited financial statements (2008-2011) and unaudited financial statements for 2012, and the adopted budget for the fiscal year ending December 31, 2013. Expenditures The maJor categories of expenditure for the Town are General Government Support, Public Safety, Transportation, Home & Community Services, Economic Assistance and Opportunity and Employee Benefits. A summary of the expenditures for the five most recently completed fiscal years and the estimated expenditures 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 Local Employees' Retirement System and the New York State Local Police and Fire Retirement System (the "Systems'). The System is acost-sharing multiple public employer retirement system. The obligation of employers and employees to contribute and the benefits to employees are governed by the New York State Retirement System and Soctal Security Law (the "Retirement System Law"). The System offers a wide 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 generally vest after five years of credited service. The System Law generally provtdes that all participating employers in the System are jointly and severally liable for any unfunded amounts. Such amounts are collected through annual billings to all participating employers. Generally, all employees, except certain part-time employees, participate in 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 salary towards the costs of retirement programs until they attain ten years in the Retirement System, at such time contributions become voluntary. On December 10, 2009 the Governor signed into law the creation of a new Tier 5, which is effective for new System employees hired after January 1, 2010. New System employees in Tier 5 will now contribute 3% of their salaries. There is no provision for these contributions to cease for Tier 5 employees after a certain period of service. Additionally, on March 16, 2012, the Governor signed into law the new Tter 6 pension program, effective for new system empployees hired after April 1, 2012. The Tier 6 legislation 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 ension multiplier, and a change in the time period for final average salary calculation from 3 years to 5 years. Tiler 6 employees will vest in the system after ten years of employment and will continue to make employee contributions throughout employment. As a result of significant capita] market declines in the recent past, in certain years the State's Retirement System portfolio has experienced negative investment performance and severe downward trends in market earnings. As a result of 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 mtmmum contribution rate established under the Retirement System Law. The Office of the New York State Comptroller has informed participating employers that due to the global economic crisis, the rate of return of the penston fund has experienced an unprecedented decline and consequently, for the next several years, contribution rates may increase. The Employer Contribution Stabilization Program, signed into law on August 11, 2010 gives local governments the option to amortize a portion of annual penston costs. Amortizations are paid in equal installments over aten-year period at an interest rate that is set annually. Under such legislation, local governments and school districts that choose to amortize will be required to set aside and reserve funds for certain future rate increases. The 15 legislation also authorizes local governments and school district to establish reserve accounts to fund fiiture payment increases that are a result of fluctuations in pension plan performance. 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 2008 $1,656,416 2009 2,222, 691 2010 3,136,267 201 1 3,276,453 2012 3 , 934, 000 2013 (Budget) 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 accounts for vested pension benefits. GASB Statement No. 45 ("GASB 45") described below requires such accounting. OPEB refers to "other post-em loyment benefits," meaning beneftts other than pension benefits. OPEB consists primarily of health care benef-its, 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 for 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. Under GASB 45, based on actuarial valuation, an annual required contribution ("ARC") is determined for each munict ality or school district. The ARC is the sum of (a) the normal cost for the year (the present value of future benefpts beeng earned by current employees) plus (b) amortization of the unfunded accrued liability (benefits already earned by 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 contributes an amount less than the ARC, a net OPEB obligation will result, which is requved 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 in accordance with principles prescribed by the Office of the State Comptroller ("OSC") of the State of New York. As of January 1, 2011, the actuarial accrued liability ("AAL"), the portion of the actuarial present value of the total future benefits based on the employees' service rendered to the measurement date, is $74.4 million. The actuarial value of the Plan's assets was $0, resulting in an unfunded actuarial accrued liability ("UAAL") of $74.4 million. The Town's annual OPEB cost was $6.9 million and the ARC was $7.1 million. The Town is on a pa :as-you-go funding basis and paid $1.7 million to the Plan for the fiscal year ending December 31, 2011 resulting m a protected year-end Net OPEB obligation of $19.3 million. There is no authority in New York State to establish a reserve fund for the liability at this time. 16 The Town's unfunded actuarial accrued OPEB liability could have a material adverse impact upon the Town's finances and could force the Town to reduce services, raise taxes or both. There is no authority m New York State to establish a reserve fund for the liability at this time. Actuarial Valuation is required every two years for OPEB plans with more than two hundred members, or every three years if there are less than two hundred members. Additional information about GASB 45 and other accounting rules applicable to municipalities and school districts tnay be obtained from GASB. REAL PROPERTY TAX INFORMATION Real ProperTy Taxes The Town derives a major portion of its revenues from a tax on real property (see "Statement of Reve cues, Expenditures and Changes in Fund Balance" in Appendix B, herein.) Property taxes accounted for approximately 83 /o of total general fund revenues, for the fiscal year ended 2012. On June 24, 2011, the Tax Levy Limit Law was enacted, which Imposes a tax levy limitation upon the municipalities, school districts and fire districts m the State, including the Town, without ~lroviding an exclusion for debt service on obltgations issued by municipalities and fire districts, includtng the Town. See Tax Levy Limit Law," herein. The followingg table sets forth the ppercentage of the Town's General Fund revenue (excluding other financing sources) comprised of real property taxes for each of the fiscal years 2008 through 2012, and, as budget, for the year ending ecember 31, 2013. Year Real Real Property Ended Total General Fund Property Taxes to December 31: Town Revenue Taxes Revenues 2008 $22,176,486 $17,391,288 78.42% 2009 24,294,262 20,165,953 83.01 2010 26,082,580 21,532,952 82.56 2071 27,207,336 21,734,453 79.88 2012(Unaudited) 26,860,318 22,412,761 83.44 2013 (Budget) 28,471,228 22,215,752 78.03 Source Audited financial statements (2008-2011) and unaudited financial statements for 2012, and the adopted budget for the fiscal year ending December 31, 2013. The following table presents the total tax lery, by purpose, with adjustments and collection performance for each of the last five fiscal years. Tax Levy and Collection Record 2009 2010 2011 2012 2013 Total Tax Levy $108,610,530 $110,942,393 $114,576,777 $117,274,147 $120,372,442 Amount Collected 104,970,256 106,195,135 109,539,295 112,913,821 76,130,000a Returned to County Amount 3,640,274 4,747,258 5,037,482 4,360,326 NA Percentage 3.35% 4.27% 4.40% 3.72% NA Uncollected at End of Year of Levy None None None None NA a. As of May 16, 2013. 17 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 1 and May 10, but may be paid without penalty by January 10 and May 31, respectively. The penalty added to delinquent taxes is one-twelfrh 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 maturity yfield index for United States Treasury securities for the quarter-year ending on the immediately preceding June 30. The rate is effective for a twelve month period commencing August 1 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 m tax collection is the County's liability. Taz Levy Limit BiII Prior to the enactment of Chapter 97 of the Laws of 2011 (the "Tax Levy Limit Law") on June 24, 2011, all the taxable real property within the Town had been subject to the levy of ad valorem taxes to pay the bonds and notes of the Town and interest thereon without limitation as to rate or amount. However, the Tax Levy Limit Law imposes a tax levy limitation upon the Town for any fiscal year commencing after May 31, 2012, continuing through May 31, 2016 or later as provided in the Tax Levy Limrt Law, without providin an exclusion for debt service on obligations issued by the Town. As a result, the power of 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 the Tax Levy Limit Law. The actual effect of the Tax 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 Tax Levy Limit Law. The summary is not complete and the full text of the Tax Levy Limit Law should be read in order to understand the details and implications thereof. The Tax Levy Limit Law imposes a limitation on increases in the real property tax levy of the Town, subject to certain exceptions. The Tax Levy Limit Law permits the Town to increase Its overall real property tax levy over the tax levy of the nor year by no more than the "Allowable Levy Growth Factor", which is the lesser of one and two-one hundredphs or the sum of one plus the Inflation Factor; provided, however that in no case shall the levy growth factor be less than one. The "Inflation Factor" is the quorient of: (i) the average of the 20 National Consumer Pnce 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 twelve-month period ending six months prior to the start of the prior fiscal year, divided by: (ii) the average of the 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 prior fiscal year, with [he result expressed as a decimal to four places. The Town is required to calculate its tax levy limit for the upcoming year in accordance with the provision above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The Tax Levy Limit Law sets forth certain exclusions to the real property tax levy limitation of the Town, including exclusions for certain portions of the expenditures for retirement system contributions and tort judgments payable by the Town. The Town Board may adopt a budget that exceeds the tax levy limit for the coming fiscal 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 Town Board, a local law to override such limit for such coming fiscal year. The Tax Levy Limit Law does not contain an exception from the levy limitation 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 Tax Levy Limit Law. As such, there can be no assurances that the Tax Levy Limit Law will not come under legal challenge for violating (i) Article VIII, Section 12 of the State Constitution for not providing an exception for debt service on obligations issued prior to the enactment of the Tax Levy Limit Law, (u) Article VIII, Section 70 of the State Constitution by effectively eliminating the exception for debt servtce to general real estate tax limitations, and (iii) Article VIII, Section 2 of the State Constitution by hmtting the pledgge of its faith and credit by a municipality or school district for the payment of debt service on obligations issued by such municipality or school district. 18 Tax Rates (Per $100 Assessed Valuation) Fiscal Year Ending December 31: 2009 2010 2011 2012 2013 General-Townwide $184.44 $196.97 $199.96 $206.45 $205.19 General -Outside Village...... 6.87 8.69 7.57 5.69 8.41 Highway 39.75 38.72 44.32 46.11 47.98 Large Taxable Properties 2012-2013 Assessment Roll Assessed Name Twe Valuation LILCO, LIPA Marketspan Keyspan Utility $1,724,917 Peconic Landing at Southold Residential Community 1,357,704 Village of Greenport-PowerPlant Utility 585,000 Fishers Island Dev. Corp . Residential Development 458,700 Robins Island Holding LLC Private Lands 330,500 Alan Cardinale Shopping Center 297,500 Damianos, Herodotus Vineyard 232,400 North Fork Bank Bank Building 225,131 New York Telephone/Verizon Utility 167,181 E & C Property Holdings Commercial 127,600 Levin Family Limited Partnership Motel & Restaurant 124,950 Anderson, Bradley &Francesca Farmland & Private Lands 120,200 Norris, Susan Various Properties 111,800 Laurel Links & Country Club Country Club 107,700 Kimogenor Pt Co Co-Op 94.600 $6.065.883° a. Assessment Roll established in 2013 for levy and collection of [axes during 2013 Fiscal Year. b. Represents approximately 5.62% of the total taxable assessed valuation of the Town for 2013. 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 m 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 Herita e at Cutcho ue LLC v. Scott A. Russell et al. -This action seeks to nullify certain actions of the Town Board and/or the P arming Board, including the adoption of residential subdivision 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 nghts. Insurance coverage may be available for potential liability for alleged compensatory damages. The Suffolk County Supreme Court dismissed all actions against each governmental 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 wrongdoing and intends vigorously to contest these claims. The Town is presently discussing settlement options. 19 East End Resources LLC v. Town of Southold Plannin Board et al -This action arises from a residential site plan application pending before the Town of Southo d Planning Board, seeking the approval of a multi-unit planned retirement communittyy (the "Application"). Plaintiff/Petitioner alleges that the Town, and its various agencies, have systematically dela ed and sought to defeat the approval of the Application. In this action, Plaintiff/Petitioner asserts etght claims, seeking declaratory relief' compelling the approval of the Application, as well as compensatory relief in the amount of $20 million as a result of alleged federal and state constitutional violations. The Town has made a motion for summary judgment and is awaiting a decision. The Town intends vigorously to defend 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 agencies, begginning in 1985 and continuing forward, participated in bias, liable and slander, among other actions, that allegedly violated plaintiffs Civil and other constitutional rights. Discovery is complete and the Town has moved for summary judgment. The Town intends to continue to vigorously contest these claims and will deny all wrongdoing. Jackson v. Town of Southold Police Dept., et al. -Plaintiffs claim that their Civi] Rights were violated during a County Anti-Drug Task Force raid of their home and are seeking damages in the sum of $23 million dollars. The warrants at issue in this case were executed by the East End Drug Task Force (EEDTF) under the auspices of the Suffolk County District Attorney's office. Southold has a police officer who serves as a designee to the EEDTF. The officer is individually named as a defendant in the lawsuit. The Town was improperly named as a party based on Plaintiffs' mistaken belief that the warrant was executed by the Southold Police Department. The Plaintiffs have recently amended their Complaint to add the EEDTF and the DA's office as defendants. The Town will amend its Answer and assert across-claim against the County defendants for contribution and indemnification. The County has also agreed to assume the defense of the town-employed police officer. This is a supervisory liability claim and, as such, the Town does not believe it has any significant liability exposure. The Town does not believe the claim has any merit. The Town will vigorously defend the claim and seek dismissal b Stipulation or through motion practice at the conclusion of discovery. The Town has filed an Answer and intends to vigorously defend this claim. FINANCIAL ADVISOR Munistat Services, Inc. has assisted the Town as financial advisor in certain matters 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. This rating reflects only the view of such rating agency and an explanation of the significance of such rating should be obtained from Moody's. There can be no assurance that such rating will not be revised or withdrawn, if in the judgment of market price and the availability of a secondary market for the outstanding bonds and notes of the Town. 20 ADDITIONAL INFORMATION Additional information may be obtained upon request from the office of the Supervisor, Town of Southold, 53095 Route 25, P.O. Box ] 179, Southold, New York 1197], telephone number 631/765-1800, or from the office of Munistat Services, Inc., 12 Roosevelt Avenue, Port Jefferson Station, 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 "Undertaking to Provide Continuing Disclsoure" pursuant to Rule 15c2-12 as promulgated by the Securities and Exchange Commission and may not be reproduced or used in whole or in part for any other purpose. By: s/s S T A. RUSSELL Supervisor Town of Southold Southold, New York May 30, 2013 21 TOWN OFSOUTHOLD APPENDIX A FINANCIAL INFORMATION Balance Sheet General Fund Fiscal Year Endive December 31: 2011 2012 ASSETS Cash and Investments $ 23,606,360 $ 13,966,287 Taxes Receivable 8,515 Accounts Receivable 889,156 66,616 Due From Other Funds 12,476 558,783 State and Federal Aid Receivables 456,993 436,290 Due From Other Governments 1,056,937 1,053,616 Supply Inventory 2,623 1,766 Prepaid Expenses 694,357 717,107 Total Assets $ 26,718,902 $ 16,808,980 LIABILITIES AND FUND EQUITY Accounts Payable $ 1,061,231 $ 985,137 Judgements and Claims 1,296,335 Due to Other Funds 2,890,552 2,783,892 Due to Component Units 675,461 Due to Other Governments 5,814,612 778 Deferred Revenues 6,755,979 4,207,651 Total Liabilities 18,494,170 7,977,458 Fund Balances Nonspendable Fund Balance 696,980 718,873 Restricted 976,020 Assigned 3,315,049 2,780,000 Unassigned 4,212,703 4,356,629 Total Fund Equity 8,224,732 8,831,522 Total Liabilities and Fund Equity $ 26,718,902 $ 16,808,980 Sources: 2011 Audited Financial Report of the Town 2012 Unaudited Annual Update Document Table itself NOT audited. Town of Southold Al Statement of Revenues, Expenditures and Changes in Fund Balance General Fund Town Wide Fiscal Yeaz Ending December 31: 2008 2009 2010 2011 2012 Revenues: Real Property Taxes $ 17,391,288 $ 20,165,953 $ 21,532,952 $ 21,734,453 $ 22,412,761 Other Real Property Tax Items 94,113 63,585 84,201 85,765 - 87,106 Non-Property Tax Items 751,073 818,273 885,473 885,473 885,473 Departmental Income 611,598 46],257 416,600 529,774 365,375 Intergovernmental Chages 262,977 356,548 222,657 271,087 338,283 Use of Money & Property 496,395 223,229 306,952 270,073 258,080 Licenses & Permits 244,910 228,699 261,339 269,551 252,802 Fines & Forfeitures 169,119 210,209 225,311 184,388 171,918 Sale of Property & Comp. for Loss 159,726 288,425 300,228 1,024,171 352,695 Miscellaneous Local Sources 190,816 117,182 399,402 310,392 306,498 State Aid 1,656,760 1,195,671 1,216,047 1,133,604 1,063,537 Pedera] Aid 147,711 165,231 231,418 508,605 365,790 Tots] Revenues 22,176,486 24,294,262 26,082,580 27,207,336 26,860,318 Expenditures:- General Government Support 5,479,661 5,548,092 5,125,064 5,796,536 5,674,225 Public Safety 8,398,429 8,599,974 8,626,229 9,247,050 8,719,237 Public Health 35,238 35,138 33,788 _ 33,788 33,800 Transportation 470,797 486,434 424,568 474,404 474,116 Economic Assistance & Opportunity 1,147,293 1,139,753 1,118,864 1,165,355 1,229,259 Culture & Recreation 452,588 335,993 282,289 277,281 285,986 Home & Community Services 426,656 401,114 402,959 419,977 421,661 Employee Benefits 7,276,770 4,980,929 5,911,381 7,534,913 9,749,128 Debt Service Principal & Interest 973,787 1,053,169 824,417 800,115 1,054,415 Total Expenditures 24,661,219 22,580,596 22,749,559 25,749,419 27,641,827 Excess (Deficiency) of Revenues Over Expenditmes (2,484,733) 1,713,666 3,333,021 1,457,917 (781,509) Operating Transfers 1n 3,493,057 30,000 3,901,277 Operating Transfers Out (2,729,790) (532,299) (453,613) (686,286) (2,333,593) Tota] Other Financing Sources (Uses) 763,267 (532,299) (453,613) (656,286) 1,567,684 Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (1,721,466) 1,181,367 2,879,408 801,631 786,175 Fund Balance Beginning of Yeaz 5,083,792 3,362,326 4,543,693 7,423,101 8,224,732 Adjustments (179,385) Fund Balance End of Yeaz $ 3,362,326 $ 4,543,693 $ 7,423,101 $ 8,224,732 $ 8,831,522 Sources: Audited Financial Reports of the Town (2008-2011) & Unaudited Annual Update Document for 2012 Table itself NOT audited. Town of Southold A2 Statement of Revenues, Expenditures and Changes in Fund Balance Idighway Fund Town Wide Fiscal Year Ending December 31: 2008 2009 2010 2011 2012 Revenues: Real Property Taxes $ 4,316,095 $ 4,137,746 $ 4,032,425 $ 4,586,696 $ 4,762,749 Other Real Property Tax Items 11,777 3,057 6,477 7,148 7,569 Departmental Income 250 Use of Money & Property 61,374 6,558 5,634 6,583 11,971 Licenses & Permits 13,190 7,788 6,914 10,410 12,322 Sale of Property & Comp. for Loss 7,416 246 1,419 9,950 Miscellaneous Local Sources 13,703 106 3,399 State Aid 326,820 318,906 343,024 416,217 406,973 Federal Aid 120,630 240,253 366,643 Total Revenues 4,750,375 4,474,407 4,516,773 5,277,457 5,571,626 Expenditures: General Government Support 135 6,203 6,884 6,283 6,610 Transportation 3,543,617 3,132,768 2,959,459 3,175,948 3,311,566 Employee Benefits 498,813 1,433,883 1,484,619 1,517,515 730,251 Debt Service Principal & Interest 40,228 41,473 98,070 96,657 308,873 Total Expenditures 4,082,793 4,614,327 4,549,032 4,796,403 4,357,300 Excess (Deficiency) of Revenues Over Expenditures 667,582 (139,920) (32,259) 481,054 1,214,326 Operating Transfers In Operating Transfers Out (823,241) (78,917) (30,000) (129,000) (976,717) Total Other Financing Sources (Uses) (823,241) (78,917) (30,000) (129,000) (976,717) Excess (Deficiency) of Revenues and Other Sources Over Expenditures and Other Uses (155,659) (218,837) (62,259) 352,054 237,609 Fund Balance Begs".ng of Yeaz 1,079,221 923,562 704,725 642,466 994,520 Prior Perdiod Adjustrnents (68,684) Fund Balance End of Year $ 923,562 $ 704,725 $ 642,466 $ 994,520 $ 1,163,445 Sources: Audited Financial Reports of [he Town (2008-2011) & Unaudited Annual Update Document for 2012 Table itself NOT audited. Town of Southold A3 Statement of Revenues, Expenditures and Changes in Fund Balance Non-Major Government Funds Fiscal Yeaz Ending December 31: 200R 2009 2010 2011 2012 Revenues: Real Pzoperty Taxes $ 2,861,630 $ 2,815,131 $ 3,745,198 $ 3,373,173 $ 3,239,732 Other Real Property Tax Items 6,415 3,375 4,245 1,364 998 Non-Property Tax Items 256,296 276,999 300,987 314,260 530,485 Departmental Income 2,387,861 2,105,725 2,096,830 2,501,551 2,592,334 Intergovernmental Chazges 0 Use of Money & Property 42,936 7,379 9,005 15,522 9,088 Licenses & Permits 167,760 185,257 144,470 168,084 176,377 Sale of Property & Comp. for Loss 212,655 287,643 312,569 358,459 319,377 Miscellaneous Local Sources 889 738 9,983 2,765 State Aid 216,273 145,768 156,8& l 149,462 188,348 Fedezal Aid 144,838 67,974 304,342 197,3&9 227,024 Tota] Revenues 6,297,553 5,895,251 7,074,965 7,089,247 7,285,928 Expenditures: General Government Support 267,423 61,807 69,800 75,439 2,893,217 Public Safery - 1,056,786 1,094,034 1,132,118 1,283,580 1,297,524 Public Health 7,370 7,370 0 Home & Catnmunity Services 3,322,615 3,155,421 3,292,453 3,524,760 882,098 Employee Benefits 470,182 1,164,035 1,163,979 1,181,638 682,277 Debt Service Principal & Interest 651,896 661,125 672,725 668,337 945,218 Total Expenditmes 5,776,272 6,143,792 6,331,075 6,733,754 6,700,334 Excess (Deficiency) of Revenues Over Expenditures 521,281 (248,541) 743,890 355,493 585,594 Operating Transfers In Operating Transfers Out (618,408) (139,031) (149,234) (325,171) (610,339) Tota] Other Financing Sources (Uses) (618,408) (139,031) (]49,234) (325,171) (610,339) Excess (Deficiency) of Revenues and O[het Sources Over Expenditures and Other Uses (97,127) (387,572) 594,656 30,322 (24,745) Fund Balance Beginning of Year 1,128,832 1,031,705 644,133 1,238,789 1,269,111 Adjustments (28,165) Fund Balance End of Yeaz $ ],031,705 $ 644,133 $ 1,238,789 $ 1,269,111 $ 1,216,201 (1) Includes the following funds: General Fund Part Town, Special Grant Fund East-West Fire Protection Fund, Southold Wastewater District, Fishers Island Sewer Dishict and Solid Waste Management Sources: Audited Financial Reports of the Town (2008-2011) & Unaudited Annual Update Document for 2012 Table itself NOT audited. Town of Southold A4 Budget Stvnmary 2013 Fiscal Year Ending December 31, 2013 Appropriations & Provisions Less: Less: Amount to Be Raised Fund foc Other Uses Estimated Revenues Unexpended Balance by Tax General $ 28,471,228 $ 3,625 476 $ 2,630,000 $ 22,215,752 General-Outside Village 2,21?,079 1,248,890 98,500 864,689 Highway-Townwide 5,622,086 353,769 335,500 4,932,817 Community Development 85,000 85,000 0 Risk Retention Fund 521,000 521,000 0 Commurdty Preservation Fund 6,293,439 3,916,000 2,377,439 0 Employees Health Plan 4,750,784 4,600,784 150,000 0 Total-Town $ 47,955,616 $ 14,350,919 $ 5,591,439 $ 28,013,258 Orient Road Improvement District 3,650 650 3,000 East-West Fire Protection District 739,353 500 7,000 73 L853 Fishers Island Ferry District 3,740,837 2,694,168 281,669 765,000 Sohd Waste Management District 4,449,776 2,264,500 78,000 2,107,276 Southold Wastewater District 126,300 20,000 106,300 Fishers Lsland Sewer District 34,600 32,471 2,129 0 F 7. Refuse & Garbage District 829.450 70,000 222,500 536,950 Orient Mosquito District 85,000 85,000 Subtotal-Special Districts $ 10,008,966 $ 5,061,639 $ 611,948 $ 4,335,379 Orient-East Mazion Pazk District 39.984 39,984 Southold Pazk District 321,300 321,300 Cutchogue-New Suffolk Pazk Dlst. 140,000 10,000 130,000 Mattimck Pazk District 581,610 28,000 147,300 406,310 Subtotal-Pazk Districts $ 1,082,894 $ 28,000 $ 157,300 $ 897,594 Fishers Island Fve District 395,200 150 395,050 Orient Fire District 602,920 65,450 537,470 East Marion Fire District 610,783 84,430 17,000 509,353 Southold Fire District 1,830,895 22,493 1,808,382 Cutchogue Fire District 1,276,700 1,000 45,000 1,230,700 Mattituck Fire Dis[ric[ 1,822,282 1,822,282 SubtaW-Fire Districts $ 6,538,760 $ 173.523 $ 62,000 $ 6,303,237 Total-All Districts 17,630,620 5,263,162 831,248 11,536,210 Grand Total $ 65,586,236 3 19,614,081 $ 6,422,687 $ 39,549,468 Source: Adopted Budge[ of the Town. 7awv of Southold AS Budget Summary 2012 Fiscal Yeaz Ending December 31, 2012 Appropriations & Provisions Less: Less: Amount to Be Raised Fund for Other Uses Estlmated Revenues Unexpended Balance by Taz Genera] $ 27,885 224 $ 3,862,963 $ 1,609,500 $ 22,412,761 General-Outside Village 2,114,022 1,262,800 263,643 587,579 Highway-Townwide 5,426,148 376,369 290,000 4,759,779 Community Development 94,715 94,715 0 Risk Retention Fund 532,500 532,500 0 Community Preservation Fund 5,476.319 3,690,758 1,785,561 0 Employees Health Plan 4,124,568 3,980,890 ]43,678 0 Total-Town $ 45,653,496 $ 13,800,995 $ 4,092,382 $ 27760,119 Orient Road Improvement District 3,770 B00 2,970 East-West Fire Protection District 744,787 400 998 743,389 Fishers Island Ferry District 3,315,000 2,515,000 50,000 750,000 Solid Waste Management District 4,093,728 2,128,500 158,414 1,806,814 Southold Wastewater District 116,650 15,300 101,350 Fishers Island Sewerpistrict 34,600 32,471 - 2,129 0 F.I. Refuse & Gazbage District 718,900 40,000 152,000 526,900 Orient Mosquito District 80,000 80,000 Subtotal-Special Disaic[s $ 9,107,435 $ 4,716,371 $ 379,641 $ 4,011,423 Orient-East Marion Pazk Dismc[ 140,000 10,000 130,000 Southold Pazk District 315,000 315,000 Cutchogue-New Suffolk Park Dist. 140,000 10,000 130,000 Mattimck Pazk District 588,360 33,500 150,000 404,860 SubtoW-Park Districts $ 1,183,360 $ 33,500 $ 170,000 $ 979,860 Fishers Island Fire District 395,200 1,000 394,200 Orient Fire District 585,038 48,028 537,010 East Marion Fire District 602,332 57 400 45,000 499,932 Southold Fire District 1,803.275 22,493 1,780,782 Cutchogue Fire Dis[dct 1,251,525 1,000 1,250,525 Mat¢mck Fire District 1,793,800 1,793,800 Subtotal-Fire Districts $ 6,431,170 $ 129,921 $ 45,000 $ 6,256,249 Total-All Districts 16,721,965 4,879,792 594,641 11,247,532 Grand Total $ 62,375,461 $ 18,680,787 $ 4,687,023 $ 39,007,651 Source: Adopted Budget of the Town. Town of Southold Ab TOWN OF SOUTHOLD APPENDLY B ANNUAL FINANCIAL REPORT UPDATE DOCUMENT FOR THE FISCAL YEAR ENDED DECEMBER 31, 2012 6/18/13 Submission PreHew Print R Submission ID:EA458036 06/1812013 15:52:09 4{mnegr~l SxxnsFa Rulemiki ng Einan{ CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED) FINANCIAL/OPERATING FILING (CUSIP-9 BASED) Rule 15c2-12 Disclosure Annual Financial Information and Operating Data: Town of Southold Annual Financial Information and Operating Data, for the year ended 12/31/2012 DOCUMENTS J-Fnancial Operating Fling SoutholdTNJune13SEC.pdfpnsted 06/18/2013 THE FOLLOWING ISSUERS ARE ASSOCIATED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP-6 State Issuer Name 844572 NY SOUTHOLD N Y THE FOLLOWING 201 SECURITIES HAVE BEEN PUBLISHED WITH THIS CONTINUING DISCLOSURE SUBMISSION: CUSIP-9 Maturity Date 8445720X3 02/15/1994 844572CY1 02/15/1995 844572028 02/15/1996 844572DA2 02/15/1997 844572DB0 02/15/1998 844572DC8 02/15/1999 844572DD6 02/15/2000 844572DE4 02/15/2001 844572DF1 02/15/2002 844572DG9 02/15/2003 dataport.ertrra.rrsrb.org/SubrrissionlSubmissionPreHewPrint.aspX?submissionld=EA458036&submissionType=CD 1/7 fi/18113 Suhrttission Pretiew Print 844572DH7 02/15/2004 844572DJ3 02/15/2005 844572DKO 02/15/2006 844572DL8 02/15/2007 844572DM6 02/15/2008 844572DN4 02/15/2009 844572DP9 02/15/2010 844572DQ7 02/15/2011 844572DR5 02/15/2012 844572EE3 11 /01 /1997 844572 EFO 11 /01 /1998 844572 EG8 11 /01 /1999 844572EH6 11 /01 /2000 844572EJ2 11/01/2001 844572EK9 11 /01/2002 844572 EL7 11 /01/2003 844572 EM5 11 /01 /2004 844572 EN3 11 /01/2005 844572 EP8 11 /01/2006 844572EQ6 11/01/2007 844572 ER4 11 /01/2008 844572ES2 11 /01/2009 844572 ETO 11 /01/2010 844572 EU 7 11 /01 /2011 844572 EV5 11 /01 /2012 844572 E W3 11 /01 /2013 844572 EX1 11 /01/2014 844572 EY9 11 /01/2015 844572EZ6 05/01/1999 844572FA0 05/01/2000 844572FB8 05/01/2001 844572FC6 05/01/2002 844572FD4 05/01/2003 844572FE2 05/01/2004 844572FF9 05/01/2005 844572FG7 05/01/2006 844572FH5 05/01!2007 844572FJ1 05/01/2008 dafaport.emma.nsrh.org/Submission/SubmissionPreuewPrinLaspX~suhmissionld=EA458036&submissionType=CD y7 6/tfl/13 Submission Preuew Print 844572FK8 05/01/2009 844572FL6 05101/2010 844572FM4 05/01/2011 844572FN2 05/01/2012 844572FP7 05/01/2013 844572FQ5 05/01/2014 844572FR3 05/01/2015 844572FS1 05/01 /2016 844572FT9 05/01/2017 844572FU6 05/01/2018 844572FV4 05/01/2000 844572FW2 05/01/2001 844572FX0 05/01/2002 844572FY8 05/01/2003 844572FZ5 05/01/2004 844572GP9 05/01/2005 844572GB7 05/01/2006 844572GC5 05/01/2007 844572GD3 05/01/2008 844572GE1 05/01 /2009 844572GF8 05/01/2010 844572GG6 05/01/2011 844572GH4 05/01/2012 844572GJ0 05/01Y1013 844572GK7 05/01/2014 844572GC5 05/01/2015 844572GM3 05/01/2016 844572 GN 1 05/01 /2017 844572GP6 05/01/2018 844572GQ4 05/01/2019 844572GW 1 02/15/2005 844572GX9 02/15/2006 844572GV7 02/15/2007 844572GZ4 02/15/2008 844572HP$ 02115/2009 844572HB6 02/15/2010 844572HC4 02/15/2011 844572HD2 02/15/2012 dataport.emma.rtsrb.org/Submission/SubmissionPreuewPrin[.aspX?submissionld=EA4580368~submissionType=CD y7 6118/13 Subntission Preuew Print 844572HE0 02/15/2013 844572HF7 02/15/2014 844572HG5 02/15/2015 844572HH3 09/01/2005 844572HJ9 09/01/2006 844572HK6 09/01/2007 844572HL4 09/01/2008 844572HM2 09/01/2009 844572HN0 09/01/2010 844572HP5 09/01/2011 844572HQ3 09/01/2012 844572 H R 1 09/01 /2013 844572HS9 09/01/2014 844572HT7 09/01/2015 844572HU4 09/01/2016 844572HV2 09/01/2017 844572HW0 09/01/2018 ~ 844572HX8 09/01/2019 844572HY6 09/01/2020 844572HZ3 09/01/2021 844572JA6 04/15/2008 844572)84 04/15/2009 844572JC2 04/15/2010 844572JD0 04/15/2011 844572JE8 04/15/2012 844572JF5 04/15/2013 844572JG3 04/15/2014 844572) H 1 04/15/2015 844572))7 04/15/2016 844572JK4 04/15/2017 844572JC2 04/15/2018 844572JM0 04/15/2019 844572JN8 04115/2020 844572JP3 04/15/2021 844572JQ1 04/15/2022 844572JR9 04/15/2023 844572JS7 04/15/2024 844572JT5 04/15/2025 dataport.emma.nsrb.ag/SubrNSSiorJSubrrissionPreuev.AriM.aspXlsubmissionld=F~1458036&subntissionType=CD 4/7 6/18/13 Subntission PreNew Print 844572JU2 04/15/2026 844572JV0 04/15/2027 844572JW8 04/15/2028 844572JX6 04/15/2029 844572JY4 04/15/2030 844572KC0 05/15/2009 844572KD8 05/15/2010 844572KE6 05/15/2011 844572KF3 05/15/2012 844572KG1 05/15/2013 844572KH9 05/15/2014 844572KJ5 05/15/2015 844572KK2 05/15/2016 844572KL0 05/15/2017 844572KM8 05/15/2018 844572KN6 05/15/2019 844572KP1 05/15/2020 844572KQ9 05/15/2021 844572KR7 05/15/2022 844572KS5 05/15/2023 844572KT3 05/15/2024 844572KU0 05/15/2025 844572KV8 05/15/2026 844572KW6 05/15/2027 844572KX4 05/15/2028 844572KY2 05/15/2029 844572KZ9 05/15/2030 844572LC9 03/15/2010 844572LD7 03/15/2011 844572LE5 03/15/2012 844572LF2 03/15/2013 844572LG0 03/15/2014 844572LH8 03/15/2015 844572LJ4 03/15/2016 844572LKi 03/15/2017 844572LC9 03/15/2018 844572LM7 03/15/2019 844572LN5 03/15/2020 dataport.emma.nsrb.org/SuhmissioNSubmissionPretiewPrint.asp~l?submissionld=EA4580388submissionType=CD 5/7 6/18113 - Subntission Pretiew Prin[ 844572LP0 03/15/2021 844572LQ8 03/15/2022 844572LR6 03/15/2023 844572LS4 03/15/2024 844572LT2 03/15/2025 844572LU9 03/15/2026 844572LV7 03/15/2027 844572LW5 03!15/2028 844572LX3 03/15/2029 844572LY1 03/15/2030 844572LZ8 05/01/2010 844572MA2 05/01Y1011 844572M80 05/01/2012 844572MC8 05/01/2013 844572MD6 05/01/2014 844572ME4 05/01/2015 , 844572MF1 05/01 /2016 844572MG9 05/01/2017 844572MH7 05/01/2018 844572MJ3 05/01/2019 844572MP9 08/15/2012 844572MQ7 08/15/2013 844572MR5 08/15/2014 844572MS3 08/15/2015 844572MT1 08/15/2016 844572MU8 08/15/2017 844572MV6 08/15/2018 844572MW4 08/15/2019 844572MX2 08/15/2020 844572MY0 08/15/2021 844572MZ7 08/15/2022 844572NA1 08/15/2023 844572NB9 08/15/2024 844572NC7 08/15/2025 844572ND5 08/15/2026 844572NE3 OS/15I2027 844572NF0 08/15/2028 844572NG8 08/15/2029 dataport.emma.msrb.org/SubrrvssioNSubmissionPretiev.PrinLaSp~.?submissionld=EA45803fi85ubntissionType=CD 6f7 6/1fl/13 Submission Preuew Print 844572N1-I6 08/15/2030 Submitter's Contact Information Company MunistatServices, Inc. Name: THOMAS CARTWRIGHT Pddress: 12 ROOSEVELT AVENUE City, State Zip: PORT JEFFERSON STATION, NY 11776 Phone Number: 6313318888 Email: tcartwright@munistat.com ©2009 Municipal Secudties Rulemald ng Board (MSRB) dafaport.emma.msrb.org/Subnission/SubrrissionPre~.iev.Print.aspX?subrrvssionld=EA458036&submissionType=CD 7!7