HomeMy WebLinkAbout2015 TOWN OF SOUTHOLD
AUDIT REPORTS
Year Ended December 31, 2015
FINANCIAL
SECTION
FINANCIAL SECTION
Independent Auditors' Report.................................................................................................................. 1-3
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis................................................................................................... 4-15
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements
Statementof Net Position....................................................................................................................... 16
Statementof Activities............................................................................................................................ 17
Fund Financial Statements
Governmental Fund Financial Statements
Balance Sheet and Reconciliation of the Governmental Funds Balance Sheet to
the Statement of Net Position........................................................................................................... 18-19
Statement of Revenues, Expenditures, and Changes in Fund Balances and
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures
and Changes in Fund Balances to the Statement of Activities........................................................ 20-21
Fiduciary Fund Financial Statements
Statement of Fiduciary Assets and Liabilities......................................................................................... 22
Notes to Financial Statements .................................................................................................................. 23-53
REQUIRED SUPPLEMENTARY INFORMATION OTHER THAN MANAGEMENT DISCUSSION AND
ANALYSIS
Schedule of Revenues, Expenditures, and Changes in Fund Balance—Budget and Actual
GeneralFund....................................................................................................................................... 54
HighwayFund...................................................................................................................................... 55
Community Preservation Fund........................................................................................ 56
Postemployment Benefits Healthcare Costs—Schedule of Funding Progress..................................... 57
Scheduleof Contributions................................................................................................... 58
Schedule of Proportionate Share of the Net Pension Liability...................................................... 59
OTHER SUPPLEMENTARY INFORMATION
Combining Fund Statements:
Non-major Governmental Funds
CombiningBalance Sheet................................................................................................................... 60
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances........................ 61
} CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT
Honorable Supervisor and Town Board
Town of Southold
Southold, New York
We have audited the accompanying financial statements of the governmental activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the
Town of Southold, New York(`Town"), as of and for the year ended December 31, 2015, and the related notes
to the financial statements, which collectively comprise the Town's basic financial statements as listed in the
table of contents.
h
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of
financial statements that are free from material misstatement, whether due to fraud or error.
Auditors' Responsibility
Our responsibility is to express opinions on these financial statements based on our audit.We did not audit the
financial statements of two of the seven component units, Fishers Island Ferry District and Fishers Island
Waste Management District, which represent 75.2%, 71.3%, and 73.5%, respectively, of the assets and
deferred outflows of resources, net position, and revenues of the aggregate discretely presented component
units. Those statements were audited by other auditors whose report thereon have been furnished to us, and
our opinion, insofar as it relates to the amounts included for those two component units, is based solely on the
reports of the other auditors. We conducted our audit in accordance with auditing standards generally
accepted in the United States of America. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free from material misstatement.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards, issued
by the Comptroller General of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the basic financial statements are free of material
misstatement. The financial statements of the Fisher's Island Waste Management District were not audited in
accordance with Government Auditing Standards.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors'judgment, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those
risk assessments, the auditor considers internal control relevant to the Town's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town's internal
control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
{ opinions. PERSONAL SERVICE.TRUSTED ADVICE.
ALBRECHT,VIGGIANO,ZURECK&COMPANY,P.C.
245 PARK AVENUE,39TH FLOOR 25 SUFFOLK COURT
NEW YORK, NY 10167 HAUPPAUGE, NY 11788-3715
T.212 792 4075 T-631 434 9500 F 631.434.9518
www.avz.com
_1_ INDEPENDENT MEMBER OF BKR INTERNATIONAL
Basis for Qualified Opinion on the Aggregate Discretely Presented Component Units
The financial statements of the five component units, Cutchogue-New Suffolk Park District, Southold Park
District, Orient-East Marion Park District, Mattituck Park District and Orient Mosquito District have not been
audited, and we were not engaged to audit these financial statements as part of our audit of the Town of
Southold, New York's basic financial statements. These financial activities are included in the Town's basic
financial statements as discretely presented component units and represent 24.8%, 28.7%, and 26.5%,
respectively, of the assets, net position, and revenues of the Town's aggregate discretely presented
component units.
Qualified Opinion
In our opinion, based on the reports of other auditors, except for the possible effects of the matter discussed in
the "Basis for Qualified Opinion on the Aggregate Discretely Presented Component Units" paragraph, the
financial statements referred to above present fairly, in all material respects, the financial position of the
aggregate discretely presented component units of the Town of Southold, New York, as of December 31,
2015, and the changes in financial position thereof for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
Unmodified Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities, each major fund and the aggregate remaining fund information
of the Town of Southold, New York as of December 31, 2015, and the respective changes in financial position
for the year then ended in accordance with accounting principles generally accepted in the United States of
America.
Emphasis of Matter
As described in Note A.7 and C.5 to the basic financial statements, the Town adopted new accounting
guidance, Governmental Accounting Standard Board Statements ("GASB") No. 68 Accounting and Financial
Reporting for Pensions — Amendment to GASB Statement No. 27 and No. 71, Pension Transition for
Contributions Made Subsequent to the Measurement date, an amendment to GASB 68. Accordingly, the
unrestricted net position as of January 1, 2015 has been restated. Our opinions are not modified with respect
to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, postemployment benefits healthcare costs —schedule of funding progress, schedule
of contributions, schedule of proportionate share of the net pension liability and the budgetary comparison
information be presented to supplement the basic financial statements. Such information, although not a part
of the basic financial statements, is required by the Governmental Accounting Standards Board, who
considers it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements. We
do not express an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
-2-
Other Matters (continued)
Other Information
The combining nonmajor fund financial statements are the responsibility of management and were derived
from and related directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audit of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or the
basic financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, based on our audit, the procedures
performed as described above, the combining nonmajor fund financial statements are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
aawud�, V - - ,I� A C (a4r)
Hauppauge, New York
September 9, 2016
-3-
REQUIRED SUPPLEMENTARY INFORMATION
Management's Discussion and Analysis
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
As management of the Town of Southold, New York (the 'Town"), we offer readers of the financial statements
this narrative overview and analysis of the financial activities for the year ended December 31, 2015.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of the Town exceed its liabilities and deferred inflows at the close
of 2015 by$100,563,600 (net position).
• The Town's governmental net position increased by$2,547,858.
• As of the close of 2015, the Town's governmental funds reported combined ending fund balances
of $24,045,004. Of this amount, $1,356,797 is not in spendable form or is required to remain intact.
The remaining of$22,688,207 or approximately 94% of total fund balance is in spendable form with
various levels of spending constraint: restricted, assigned, or unassigned making them available for
spending at the Town's discretion (See Note B.2.)
• At the end of 2015, the Town's total fund balance for the general fund was $8,111,954, a decrease
of $601,502 or 6.90% from the prior year. The assigned and unassigned fund balance for the
general fund was$7,069,204 or 25.08% of total general fund expenditures and other uses.
• The Town's total bonded debt was $32,392,000, excluding premiums of$978,944, is a decrease of
8.1%from the prior year.
OVERVIEW OF THE FINANCIAL STATEMENTS
The discussion and analysis is intended to serve as an introduction to the Town's basic financial statements.
The Town's basic financial statements comprise these components: 1) government-wide financial statements,
2) fund financial statements 3) fiduciary fund financial statements and 4) notes to basic financial statements.
This report also contains supplementary information in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
Town's finances, in a manner similar to a private-sector business. The intent of the government-wide financial
statements is to give the reader a long-term view of the Town's financial condition.
The Statement of Net Position presents financial information on all of the Town's assets, deferred outflows of
resources, liabilities, and deferred inflows of resources with the difference between the two reported as net
position. This combines and consolidates the Town's current financial resources with capital assets and long-
term obligations. Over time, increases or decreases in the Town's net position is one indicator of whether its
financial health is improving or deteriorating. You will need to consider other nonfinancial factors, however,
such as changes in the Town's property tax base and the condition of the Town's buildings, roads, drainage
and other assets to assess the overall health of the Town.
The Statement of Activities presents information showing how the Town's net position changed during the
most recent year. Revenues and expenses are reported by activity to give the reader an understanding of
how each of the Town's activities are being supported. All changes in net position are reported as soon as the
underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash flows in
future periods. This method is known as the accrual basis of accounting and is different from the modified
accrual basis of accounting used in the Town's fund financial statements.
The Town's government-wide financial statements include both the governmental activities of the Town itself
(known as the primary government) and of its legally separate component units for which the Town is
financially accountable. Financial information for all component units is reported separately (discretely
presented) from the financial information presented for the primary government.
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
OVERVIEW OF THE FINANCIAL STATEMENTS (continued)
Government-wide Financial Statements (continued)
Governmental Activities - The Town's basic services are reported here, including: general government
support; public safety; public health; transportation; economic assistance and opportunity; culture and
recreation and home and community services. Property taxes, mortgage taxes, franchise fees, fines, and
state and federal grants finance these activities. The Town also charges fees to customers to help it cover the
cost of certain services it provides.
Component Units- Component units are legally separate organizations for which the Town is either financially
accountable, or the nature and significance of their relationship with the Town is such that exclusion would
cause the Town's financial statements to be misleading or incomplete. All of these entities are reported in a
separate column in the government-wide statements as discretely presented.
Information on separately issued financial statements is shown in Note E to the financial statements.
Fund Financial Statements
The fund financial statements focus on current available resources and are organized and operated on the
basis of funds, each of which is defined as an accounting entity with a self-balancing set of accounts
established for the purpose of carrying on specific or attaining certain objectives in accordance with special
regulations, restriction or limitations. The Town, like other governments, uses fund accounting to ensure and
demonstrate compliance with finance-related legal requirements. All of the funds of the Town can be divided
into two categories: governmental funds and fiduciary funds.
Governmental Funds
The Town's activities are reported in governmental funds. Governmental funds are used to account for
essentially the same functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental fund financial
statements focus on near-term inflows and outflows of spendable resources, as well as on balances of
spendable resources available at the end of the year. Such information may be useful in evaluating a
government's near-term financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it
is useful to compare the information presented for governmental funds with similar information presented for
governmental activities in the government-wide financial statements. By doing so, readers may better
understand the long-term effect of the Town's near term financial decisions. Both the governmental fund
balance sheet and governmental fund statement of revenues, expenditures, and change in fund balances
provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The Town maintains eleven (11) individual governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the five (5) major funds. The general fund, highway fund, capital projects fund,
debt service fund and the community preservation fund are reported as major funds. Data from the six (6)
other governmental funds are combined into a single, aggregated presentation.
The Town adopts an annual appropriated budget for its general and special revenue funds, except for the
capital projects fund, debt service fund and special grant fund. A budgetary comparison schedule for the
general fund, highway fund, and community preservation fund can be found in the section labeled "Required
Supplementary Information Other Than Management's Discussion and Analysis".
Fiduciary Funds
All of the Town's fiduciary activities are reported in a separate Statement of Fiduciary Assets and Liabilities.
We exclude these activities from the Town's other financial statements because the Town cannot use these
assets to finance its operations. The Town is responsible for ensuring that the assets reported in these funds
are used for their intended purposes.
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
OVERVIEW OF THE FINANCIAL STATEMENTS (continued)
Notes to the financial statements
The notes provide additional information that is essential to a full understanding of the data provided in the
government-wide and fund financial statements. The notes to the financial statements can be found following
the basic financial statements.
Other information
In addition to the basic financial statements this report contains supplementary information immediately
following the notes to the financial statements.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. In the
case of the Town, assets and deferred outflows of resources exceeded liabilities and deferred inflows by
$100,563,600 at the close of the most recent year.
Condensed Statement of Net Position
Primary Governmental Activities
December 31,
2015 2014
Assets
Current and other assets $ 42,069,399 $ 35,435,506
Capital assets 157,683,190 155,619,414
Total Assets 199,752,589 191,054,920
Deferred Outflows of Resources 4,004,203 -0-
Liabilities
Current and other liabilities 13,452,758 8,353,746
Long-term liabilities 82,281,997 77,792,656
Total Liabilities 95,734,755 86,146,402
Deferred Inflows of Resources 7,458,437 6,721,115
Net Position
Net Investment in Capital Assets 122,029,919 119,161,711
Restricted 14,797,002 11,632,416
Unrestricted (36,263,321) (32,606,724)
Total Net Position $ 100,563,600 $ 98,187,403
Total assets and deferred outflows of the primary government as of December 31, 2015 were $203,756,792,
an increase of $12,701,872 from December 31, 2014. Total liabilities and deferred inflows as of December 31,
2015 were $103,193,192, which represents an increase of $10,325,675 from December 31, 2014. This
resulted in a net position of $100,563,600 an increase of $2,376,197 from December 31, 2014 which includes
a prior period adjustment of$171,661 due to the implementation of GASB Statement No.68. Of the Town's net
position, $122,029,919 was invested in capital assets and $14,797,002 was restricted for future land
acquisition and capital projects leaving a$36,263,321 unrestricted deficit.
By far, the largest portion of the Town's net position $122,029,919 reflects its investment in capital assets (i.e.
land, buildings, machinery and equipment, intangibles, and infrastructure) less any related debt used to
acquire those assets that is still outstanding. The Town uses these capital assets to provide services to
citizens; consequently, these assets are not available for future spending. Although the Town's investment in
its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt
must be provided from other sources, since the capital assets themselves will not be used to liquidate these
liabilities.
-6-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
The deficit in the unrestricted net position does not necessarily indicate fiscal stress. At the end of the current
year, the Town is able to report a positive balance in the categories of investment in capital assets, and
restricted net position. The same situation held true for the prior year. The deficit balance in unrestricted arose
primarily due to long-term liabilities, which includes other postemployment benefits, net pension liability,
compensated absences, and landfill closure and postclosure costs that will be funded through future budgetary
appropriations when they become payable in future periods.
Changes in Net Position
Primary Governmental Activities
For the years ended December 31,
2015 2014
Program Revenues
Charges for services $ 3,679,608 $ 4,452,922
Operating grants and contributions 955,209 1,036,106
Capital grants and contributions 621,103 4,813,959
5,255,920 10,302,987
General Revenues
Real property taxes 31,169,581 31,419,818
Other real property tax items 89,453 98,810
Non-property tax items 8,108,492 7,558,659
Interest earnings 111,187 76,504
State aid - unrestricted 1,305,490 1,177,660
Other 345,375 682,053
41,129,578 41,013,504
Total Revenues 46,385,498 51,316,491
Program Expenses
General government support 10,292,144 10,338,569
Public safety 17,653,201 18,828,553
Public health 40,964 33,300
Transportation 7,199,866 7,218,831
Economic assistance and opportunity 2,082,286 2,169,613
Culture and recreation 430,223 509,010
Home and community services 4,691,736 8,663,270
Interest on debt 1,447,220 1,375,997
Total Expenses 43,837,640 49,137,143
Increase in Net Position 2,547,858 2,179,348
Net Position, beginning of year, as reported 98,187,403 96,008,055
nulative effect of change in accounting principle* (171,661) -0-
Net position, beginning of year, as restated 98,015,742 96,008,055
Net position, end of year $ 100,563,600 $ 98,187,403
*The Town's financial statements presented herein are for the year ended December 31, 2015 and the
cumulative effect of applying GASB Statement No. 68, "Accounting and Reporting for Pensions"and GASB
Statement No. 71, "Pension Transition Guidance for Contributions Made Subsequent to the Measurement
Date"is shown as an adjustment to the beginning net position for fiscal year 2015. Accordingly, the condensed
financial information presented above also reflects this cumulative effect of the accounting change to beginning
net position of fiscal year 2015. The condensed financial information for the year ended December 31, 2014
was not restated as the information was not available.
-7-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
Net position,from all government activities, increased by$2,547,858 in the current year.
Key elements of the governmental activities are:
• Overall program revenues decreased by $5,047,067 from the prior year. Capital grants decreased by
$4,192,856 which is primarily related to federal aid received to fund land acquisitions in the prior year of
$2,491,750. In addition in the prior year, the Town received $1,768,972 in federal funding for the Dike
Repair Project. In addition, charges for services decreased $773,314 as a result of the decrease
commercial municipal solid waste fees due to a decrease in volume from the opening of a private facility
within the Town which has offered other options for waste dumping.
• General revenues remained relatively consistent with the prior year.
• Overall expenses decreased by$5,299,503. Public safety expenditures decreased$1,175,352 as a result
of the decrease in employee benefits being allocated to this function due to the decrease in health
benefits expenditures from the termination of the self-funded medical plan. Home and community services
expenses decreased $3,971,534. This was primarily due to the Town receiving federal aid in the prior
year for the construction costs for dike repairs. These projects were not completed on Town owned
properties and therefore were not capitalized. These expenses amounted to $1,669,697. In addition,
refuse and garbage contractual expenditures have decreased $647,271 in the current year which
correlates to the decrease in program revenues relating to the decrease in disposal fees. The landfill
closure liability was reduced by $427,237 due to the Town being approved by NYSDEC to perform
monitoring less frequently.
Total Cost of Services
Net Cost of Services for Governmental Activities
For the years ended December 31,
Total Cost of Services Program Revenues Net Cost of Services
2015 2014 2015 2014 2015 2014
General government support $ 10,292,144 $ 10,338,569 $ 516,981 $ 416,920 $ (9,775,163) $ (9,921,649)
Public safety 17,653,201 18,828,553 948,157 881,662 (16,705,044) (17,946,891)
Public health 40,964 33,300 9,063 9,063 (31,901) (24,237)
Transportation 7,199,866 7,218,831 738,917 500,809 (6,460,949) (6,718,022)
Economic assistance and
opportunity 2,082,286 2,169,613 427,813 469,217 (1,654,473) (1,700,396)
Culture and recreation 430,223 509,010 297,838 303,110 (132,385) (205,900)
Home and community services 4,691,736 8,663,270 2,317,151 7,722,206 (2,374,585) (941,064)
Interest on debt 1,447,220 1,375,997 (1,447,220) (1,375,997)
$ 43,837,640 $ 49,137,143 $ 5,255,920 $ 10,302,987 $(38,581,720) $(38,834,156)
The total cost of all governmental activities this year was $43,837,640. The net cost of these services after being
subsidized by program revenues of$5,255,920 was$38,581,720.
-8-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)
20,000,000
Expenses and Program Revenues
18,000,000 Governmental Activities
16,000,000 o penses
®
14,000,000 Revenues
12,000,000
10,000,000 g,
8,000,000
.j
6,000,000
t:*
4,000,000 ,
2,000,000
FL EJ
General Public safety Public health Transportation Economic Culture and Home and Interest on debt
government assistance and recreation community
support opportunity services
Revenues by Source—Governmental Activities for the Year ended December 31 2015
Other general Operating grants
revenues and contributions Capital grants and
1% 2% contributions
2%
Non-property
tax items
17% :� u.c
Charges for
sere ices " °
8% Real property
taxes
67%
State aid-
unrestricted
3%
Revenue by Source
Primary Governmental Activities
for the year ended December 31,
2015 2014
Real property taxes $ 31,169,581 $ 31,419,818
State aid - unrestricted 1,305,490 1,177,660
Charges for services 3,679,608 4,452,922
Non-property tax items 8,108,492 7,558,659
Other general revenues 546,015 857,367
Operating grants and contributions 955,209 1,036,106
Capital grants and contributions 621,103 4,813,959
$ 46,385,498 $ 51,316,491
-9-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS
Governmental Funds
The focus of the Town's governmental funds is to provide information on near term inflows, outflows, and
balances of spendable resources. Such information is useful in assessing the Town's financing requirements.
In particular, spendable fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the year.
• Nonspendable fund balance - $1,356,797 (inherently nonspendable) includes the portion of net
resources that cannot be spent because they must be maintained intact.
• Restricted fund balance - $14,797,002 (externally enforceable limitations on use) includes amounts
subject to limitations imposed by creditors, grantors, contributors, or laws and regulations of other
governments.
• Assigned fund balance - $4,995,104 (limitation resulting from intended use) consists of amounts
where the intended use is established by the highest level of decision making and negative fund
balances in funds other than the general fund.
• Unassigned fund balance — $2,896,101(residual net resources) is the total fund balance in the
general fund in excess of nonspendable, restricted and assigned fund balance and negative fund
balances in funds other than the general fund.
The following schedule presents a summary of the Governmental Funds — (general, special revenue, and
capital projects) revenues and expenditures for the year ended December 31, 2015, and the amount of
change and percentage of total in relation to the prior year.
Increase
2015 2014 (Decrease)
REVENUES
Real property taxes $ 31,169,581 $ 31,419,818 $ (250,237)
Other real property tax items 89,453 98,810 (9,357)
Non-property tax items 8,108,492 7,558,659 549,833
Departmental income 2,579,435 3,420,405 (840,970)
Intergovernmental charges 202,607 318,300 (115,693)
Use of money and property 278,876 259,523 19,353
Licenses and permits 531,669 501,587 30,082
Fines and forfeitures 285,314 168,973 116,341
Sale of property and compensation for loss 393,128 567,921 (174,793)
Miscellaneous local sources 130,780 242,048 (111,268)
Interfund revenues 30,000 30,000 -0-
State aid 2,332,742 2,453,568 (120,826)
Federal aid 305,013 4,347,817 (4,042,804)
Total Governmental Fund Revenues $ 46,437,090 $ 51,387,429 $ (4,950,339)
EXPENDITURES
General government support $ 5,987,110 $ 6,035,878 $ (48,768)
Public safety 11,197,005 10,686,498 510,507
Public health 40,964 33,300 7,664
Transportation 4,577,664 4,026,295 551,369
Economic assistance and opportunity 1,270,735 1,279,830 (9,095)
Culture and recreation 296,303 299,708 (3,405)
Home and community services 4,898,438 9,753,834 (4,855,396)
Employee benefits 11,341,215 11,796,493 (455,278)
Capital Outlay 2,120,204 3,010,616 (890,412)
Debt service principal and interest 3,734,276 3,792,496 (58,220)
Bond issuance costs 102,900 -0- 102,900
Total Governmental Fund Expenditures $ 45,566,814 $ 50,714,948 $ (5,148,134)
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TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS (continued)
Governmental Funds(continued)
• Although the Town appropriated $4,596,190 of prior year fund balance to finance the 2015 operations,
excluding open purchase orders brought forward, the total fund balance increased $973,176.
Governmental revenues decreased by $4,950,339. The decrease is due to the following: decreases in
real property taxes of $250,237 and an increase in non-property tax items of $549,833 which is mainly
attributable to an increase in the 2%transfer tax. Decreases in departmental income of$840,970 are due
to the decrease commercial municipal solid waste fees as a result of the decrease in volume due to the
opening of a private facility within the Town which has offered other options for waste dumping. In
addition, in the prior year, the Town received federal aid of $4,260,722 which includes $1,768,972 from
the Department of Agriculture for the Dike Repair Project and $2,491,750 for Farm and Ranchland
protection.These grants were not received in the current year.
• Overall, governmental expenditures decreased $5,148,134. The decrease is due to the following:
decreases in home and community expenditures of $4,855,396 due to significantly less land being
purchased with federal aid than the prior year. In addition, there were decreases in employee benefits of
$455,278 due to the Town terminating their self-funded medical plan and participating in the New York
State Health Insurance Plan which resulted in cost savings. Decreases in capital outlay of$890,412 were
a result of the Town commencing larger projects in 2014 which included the Dike Repair Project which
was funded by federal aid. These decreases were offset by increases of $510,507 in public safety costs
and $551,369 of transportation costs. The increase in public safety costs is due to purchases of public
safety equipment and higher personal service costs.The increase in transportation expenditures of is due
to additional highway resurfacing projects needed due to the roadway deterioration from harsh winters.
Additionally, the Town received CHIPS funding which provided for other road improvement projects to be
completed.
General Fund
The general fund is the chief operating fund of the Town. At the end of the current year, the total fund balance
of the general fund was $8,111,954 decreasing by $601,502 or 6.9% from the prior year. Of this amount,
$1,042,750 is not in spendable form (i.e. inventory and prepaid items). The remaining $7,069,204 of the fund
balance is in spendable form as follows: $426,028 is assigned for insurance claims; $2,000,000 has been
assigned by the Town Board for the subsequent year's budget and $106,249 has been assigned for
encumbrances resulting from open purchase orders, and the remaining $4,536,927 represents spendable,
unassigned fund balance.
As a measure of the general funds' liquidity, it may be useful to compare spendable fund balance and total
fund balance to total fund expenditures and other financing uses. Spendable and total fund balance
represents 25.08%and 28.78%, respectively, of total general fund expenditures and other financing uses.
The key elements of the fund balance decrease of$601,502 are as follows:
• There was a planned fund balance reduction of $3,505,000, excluding prior year encumbrances brought
forward, a result of appropriations in the current year's budget.
• General government support was $1,043,473 under budget primarily due to lower than anticipated town
board contractual expenditures ($130,000) due to the Interpretative Signage Project being significantly
scaled down,judgment and claims($307,000), deferral of a road restoration project($208,000),as well as
the implementation of cost savings procedures($398,000).
• Public safety was $673,608 less than budgeted by $477,000 which resulted from the hiring of six new
officers later than anticipated ($275,000) and overtime and holiday pay being lower than expected.
Contractual expenditures were less than budgeted by $132,000 mainly due to gas and oil prices being
lower than expected.
• Economic assistance and opportunity was $226,305 under budget due to Programs for the Aging coming
in under budget in personal services by$169,000 due to employee turnover and planned retirements not
executed in the current year. In addition, contractual expenses were under budget by $53,000 which
includes gas and oil,food and vehicle maintenance.
• Employee benefits were $720,755 under budget due to the Town conservatively budgeting for health
insurance premiums and retirement contributions which amounted to approximately$457,000. In addition,
the Town estimates Social Security benefits based on positions to be filled. The hiring in the police
department took place later in the year.These costs were approximately$209,000 under budget.
-11-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS (continued)
Governmental Funds (continued)
Highway Fund
At the end of the current year,the total fund balance of the highway fund was$646,997 decreasing by$396,131 or
37.98%from the prior year. Of this amount, $169,329 is not in spendable form (i.e. prepaid items).The remaining
$477,668 of the fund balance is in spendable form as follows: $250,440 has been assigned by the Town Board for
the subsequent year's budget, $5,832 has been assigned for encumbrances resulting from open purchase orders,
and the remaining$221,396 is assigned for highway purposes.
The key elements of the fund balance decrease of$396,131 are as follows:
• There was a planned fund balance reduction of $460,640 a result of appropriations in the current year's
budget.
• Transportation savings of $341,620 resulted from the $168,000 in personal services being less than
anticipated due to expected retirements and payouts and road end restorations projects being deferred to
2016 for$146,000.
Capital Projects Fund
At the end of the current year, the capital projects fund had a fund deficit of$1,640,826.
The fund balance decreased in the capital projects fund by$1,043,140 from the prior year.
• The decrease resulted from differences in timing between project expenditures and encumbrances
and the recognition of corresponding permanent financing.
Community Preservation Fund
The Community Preservation Fund's total fund balance, which is restricted for land preservation acquisitions,
increased by$3,164,586 to $14,797,002. The increase in fund balance is attributable to an excess of the 2%
transfer tax over land acquisitions and related debt service costs.
Nonmajor Governmental Funds
At the end of the current year, the total fund balance of the nonmajor governmental funds was $2,129,877,
decreasing $150,637 from the prior year. Of this amount$144,718 is not in spendable form (i.e. prepaids).The
remaining $1,985,159 of the fund balance is in spendable form as follows; $596,000 for subsequent year's
budget, $2,235 assigned for encumbrances resulting from open purchase orders, and the remaining
$1,386,924 of fund balance is assigned for nonmajor governmental fund purposes.
The key elements of the fund balance decrease of$150,637 are as follows:
• The Part Town's fund balance was$1,148,392 which is a decrease of$189,642 from the prior year.
• Actual revenues exceeded budgeted expectations by $148,231. Overall, total expenditures were less
than anticipated by $232,525. In addition, the Town appropriated $570,000 of fund balance from the
prior year.
• The Solid Waste Management District's fund balance was $905,466 at December 31, 2015 which is
an increase of $56,849 from the prior year. Actual revenues were less than anticipated by $433,896.
Overall, total expenditures were less than anticipated by$543,826. In addition, the Town appropriated
$50,000 of fund balance from the prior year.
-12-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
FINANCIAL ANALYSIS OF THE TOWN'S FUNDS(continued)
Governmental Funds (continued)
General Fund Budgetary Highlights
The Town appropriated expenditures in the original general fund budget in excess of estimated revenues in the
amounts of$3,696,455, inclusive of$191,455 of encumbrances, by assigning fund balance from the prior year.
Actual revenues were more than anticipated by$143,981. Actual expenditures in all budgetary line items were
less than the budgetary appropriation by$2,792,774.
Over the course of the year, the Town Board revises the budget as needed so that expenditures do not exceed
appropriations. In all Town funds, various transfers between appropriations were approved for this purpose.
The following are the main components of the increase in appropriations:
• Federal aid increased by$196,746 due to additional grants being received.
• Additional appropriations of $180,614 in public safety due to the anticipation of retirements within the
police force and the related payouts of sick and vacation time relating to those retirements.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
As of December 31, 2015 the primary government had $157,683,190 in net capital assets including land and
land development rights, buildings, improvements, machinery and equipment, and infrastructure. The Town's
component units had $15,632,476 in net capital assets including land, buildings, improvements, machinery and
equipment, and infrastructure.
Capital Assets at December 31,
Primary Government 2015 2014
Land $ 8,677,637 $ 7,634,797
Land development rights 117,590,063 116,878,970
Construction in progress 1,381,732 1,107,991
Buildings 13,329,610 13,270,215
Improvements other than buildings 15,849,791 15,765,606
Machinery and equipment 11,767,729 10,993,550
Software 1,119,056 1,109,657
Infrastructure 79,525,483 77,638,597
Total Capital Assets 249,241,101 244,399,383
Less: accumulated depreciation 91,557,911 88,779,969
-imary Government-Total Net Capital Assets $ 157,683,190 $ 155,619,414
Component Units
Land $ 2,103,162 $ 2,103,162
Buildings 14,145,321 14,145,321
Improvements other than buildings 2,545,238 2,545,238
Machinery and equipment 4,011,124 4,003,629
Infrastructure 4,366,330 4,047,193
Total Capital Assets 27,171,175 26,844,543
Less: accumulated depreciation 11,538,699 10,684,369
Component Units -Total Net Capital Assets $ 15,632,476 $ 16,160,174
In 2015, the Town of Southold's major capital asset acquisitions were as follows:
• Land and land development rights of$1,753,933
• Construction in progress of$1,064,818
• Machinery and equipment of$963,974
• Highway resurfacing and drainage of$1,038,401
-13-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31, 2015
CAPITAL ASSET AND DEBT ADMINISTRATION (continued)
Capital Assets(continued)
The capital program is a long range financing guide and not a definitive plan. Each appropriation must be
authorized by Town Board resolution before being undertaken. Each may be financed by issuance of general
obligation bonds, which, at times, are preceded by issuance of bond anticipation notes for various periods of
time depending on the probable usefulness of the purpose of expenditure. The Town's three year capital plan
is summarized below:
2016 2017 2018
Machinery and Equipment
General Fund $ 254,922 190,000 62,000
Highway Fund 110,000 -0- -0-
Building and Improvements
General Fund 587.328 -0- -0-
Totals $ 952,250 $ 190,000 $ 62,000
Additional information on the Town's capital assets can be found in Note C.3 to the financial statements.
Long-Term Debt
At December 31, 2015, the Town had approximately $33.5 million in long term general obligation bonds
outstanding, of which $32.4 million was for the primary government. Also outstanding at year-end were bond
anticipation notes in the amount of$3.5 million, $2.8 million which was for the primary government.
During 2015, the Town issued $7,882,000 in Refunding Serial Bonds with interest rates ranging from 2.0% to
5.0%and annual maturities through March 2030. The refunding was done in order to reduce debt payments in the
short-term. The refunding reduced future total debt service payments by $1,991,536. The overall transaction
resulted in an economic gain (the difference between the present values of the debt service payments on the old
and new debt) of$499,558 for the Town.
Outstanding Debt Governmental Activities
2015 2014
General obligation bonds payable $ 32,392,000 $ 35,235,000
Bond anticipation notes 2,830,000 2,110,000
$ 35,222,000 $ 37,345,000
*This did not include the bond premium as presented in the Statement of Net Position.
The Town of Southold's bond credit rating from Moody's Investors Services was Aa1 as of December 31,2015.
Debt Limit - The Town has the power to contract indebtedness for any Town purpose so long as the principal
amount thereof, subject to certain limited exceptions, shall not exceed seven percent of the average full
valuation of taxable real estate of the Town, and subject to certain enumerated exclusions and deductions
such as water and certain sewer facilities and cash or appropriations for current debt service.
-14-
TOWN OF SOUTHOLD
MANAGEMENT'S DISCUSSION AND ANALYSIS
December 31,2015
CAPITAL ASSET AND DEBT ADMINISTRATION (continued)
Long-Term Debt (continued)
The constitutional method for determining full valuation is calculated by taking the assessed valuation of
taxable real estate as shown upon the latest completed assessment roll and dividing the same by the
equalization rate as determined by the State Board of Equalization and Assessment. The State Legislature is
required to prescribe the manner by which such ratio shall be determined. Average full valuation is
determined by taking the sum of the full valuation of the last completed assessment roll and the four preceding
assessment rolls and dividing such sum by five. The percentage of debt contracting power exhausted at
December 31, 2015 was 5.13%.
Additional information on the Town's debt activity can be found in Note CA to the financial statements.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Property Tax
The Town has adopted a budget for the 2016 fiscal year which factors in inflation and other adjustments to
revenues and expenditures as well as prior year positive and negative fund balances. The 2016 budget
includes an overall increase in real property tax revenues from the prior year of approximately 4.34% for the
general Town governmental activities.
In June 2011, New York State enacted Chapter 97, Laws of 2011 Real Property Tax Levy Cap and Mandate
Relief Provisions, which includes a 2% property tax cap for municipalities that affects the Town and its
municipal component units. Beginning in 2012, and lasting through at least June 15, 2020, no local
government is authorized to increase its property tax levy by more than 2%or the rate of inflation (whichever is
less). Local governments can exceed the tax levy limit by a 60% vote of the governing body, or local law.
There are permitted exceptions and adjustments. The Town is currently evaluating the effect of the cap on
future year's budgets.
State Aid and Local Assistance
The Town receives financial assistance from New York State and from Suffolk County. During 2015, financial
assistance included state aid consisting of mortgage tax of$1,306,404, consolidated highway aid of$562,220,
$49,985 in capital grants and other state aid of approximately$325,805. State aid per capita was $88,328 and
County local government assistance was $202,607. Additionally, if the State should not adopt its budget in a
timely manner, municipalities and school districts in the State, including the Town, may be affected by a delay
in the payment of state aid. The State is not constitutionally obligated to maintain or continue state aid to the
Town.The Town's 2016 budget included similar amounts for this financial assistance.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and creditors with a general
overview of the Town's finances and to show the Town's accountability for the money it receives. If you have
questions about this report or need additional financial information, contact the Town of Southold, Office of the
Town Comptroller, Southold, New York.
-15-
BASIC FINANCIAL
STATEMENTS
TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENT
STATEMENT OF NET POSITION
December 31, 2015
Primary Nonmalor
Governmental Component
Activities Units
ASSETS
Current Assets:
Cash and investments $ 38,117,857 $ 2,642,578
Accounts receivable 244,059 53,972
State and federal aid receivables 184,909
Due from other governments 2,165,777
Due from primary government 529,641
Inventory of material and supplies 1,674
Prepaids 1,355,123 110,065
Total Current Assets 42,069,399 3,336,256
Noncurrent Assets:
Non-depreciable capital assets 127,649,432 2,103,162
Depreciable capital assets,net of depreciation 30,033,758 13,529,314
Total Noncurrent Assets 157,683,190 15,632,476
Total Assets 199,752,589 18,968,732
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refundings 458,044
Pensions 3,546,159 148,221
4,004,203 148,221
LIABILITIES
Current Liabilities:
Accounts payable and accrued liabilities 1,164,198 411,246
Claims and judgments payable 6,198
Accrued interest payable 385,991 19,794
Bond anticipation notes payable 2,830,000 699,000
Due to component units 529,641
Due to other governments 5,833,845
Unearned revenue 105,346
Noncurrent liabilities due within one year
General obligation bonds payable 2,430,925 194,000
Compensated absences 150,000 39,835
Estimated liability for landfill closure and postclosure care costs 16,614
Total Current Liabilities 13,452,758 1,363,875
Noncurrent Liabilities:
General obligation bonds payable 30,940,019 944,000
Compensated absences 8,774,108 119,505
Claims and ludgments payable 426,028
Estimated liability for landfill closure
and postclosure care costs 426,274
Net pension liability 1,926,748 134,178
Other postemployment benefits payable 39,788,820 323,799
Total Noncurrent Liabilities 82,281,997 1,521,482
Total Liabilities 95,734,755 2,885,357
DEFERRED INFLOWS OF RESOURCES
Unearned revenue from real property taxes 7,229,204 529,641
Pensions 229,233 2,310
7,458,437 531,951
NET POSITION
Net Investment in Capital Assets 122,029,919 13,221,000
Restricted 14,797,002
Unrestricted (36,263,321) 2,478,645
Total Net Position $ 100,563,600 $ 15,699,645
See notes to the financial statements.
-16-
TOWN OF SOUTHOLD
GOVERNMENT-WIDE FINANCIAL STATEMENT
STATEMENT OF ACTIVITIES
Year Ended December 31, 2015
Net Expenses and
Program Revenues Change in Net Position
Operating Capital
Charges for Grants and Grants and Primary Component
Function/Program Expenses Services Contributions Contributions Government Units
PRIMARY GOVERNMENT
Government Activities:
General government support $10,292,144 $ 342,674 $ 124,322 $ 49,985 $ (9,775,163)
Public safety 17,653,201 656,840 291,317 (16,705,044)
Public health 40,964 9,063 (31,901)
Transportation 7,199,866 23,691 153,006 562,220 (6,460,949)
Economic assistance and opportunity 2,082,286 181,040 246,773 (1,654,473)
Culture and recreation 430,223 297,838 (132,385)
Home and community services 4,691,736 2,177,525 130,728 8,898 (2,374,585)
Interest on debt 1,447,220 (1,447,220)
Total Primary Government 43,837,640 3,679,608 955,209 621,103 (38,581,720)
COMPONENT UNITS
General government support 363,446 $ (363,446)
Public health 84,066 (84,066)
Transportation 3,681,106 2,833,044 1,532 295,755 (550,775)
Culture and recreation 974,383 14,060 (960,323)
Home and community services 763,807 43,559 (720,248)
Interest on debt 56,467 (56,467)
Total Component Units $ 5,923,275 $2,890,663 $ 1,532 $ 295,755 $ (2,735,325)
GENERAL REVENUES
Real property taxes 31,169,581 2,353,909
Other real property tax items 89,453
Non-property tax items 8,108,492
Interest earnings 111,187 4,550
State aid-unrestricted 1,305,490
Other 345,375 314,089
Total General Revenues 41,129,578 2,672,548
Change in Net Position 2,547,858 (62,777)
Net Position at Beginning of Year,as reported 98,187,403 15,780,906
Cumulative Effect of Change in Accounting Principle (171,661) (18,484)
Net Position at Beginning of Year,as restated 98,015,742 15,762,422
Net Position at End of Year $100,563,600 $ 15,699,645
See notes to financial statements.
-17-
TOWN OF SOUTHOLD
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2015
MAJOR GOVERNMENTAL FUNDS
Non-Major
Capital Community Debt Governmental
General Highway Projects Preservation Service Funds Totals
ASSETS
Cash and investments $20,496,998 $ 595,314 $ 932,450 $14,148,808 $ 1,944,287 $38,117,857
Accounts receivable 2,075 47 121 712 241,104 244,059
Due from other funds 1,167 1,173,898 332,518 819,201 2,326,784
State and federal aid receivable 28,225 36,059 1,166 18,270 101,189 184,909
Due from other governments 1,148,715 34,993 656,106 1,839,814
Inventory of material and supplies 1,674 1,674
Prepaids 1,041,076 169,329 144,718 1,355,123
Total Assets $22,719,930 $ 1,974,647 $ 1,301,248 $14,823,896 $ -0- $3,250,499 $44,070,220
LIABILITIES
Accounts payable and accrued liabilities 569,094 132,312 110,908 26,894 324,990 1,164,198
Judgments and claims 6,198 6,198
Bond anticipation notes payable 2,830,000 2,830,000
Due to other funds 2,301,996 23,622 1,166 2,326,784
Due to component units 529,641 529,641
Due to other governments 5,833,685 160 5,833,845
Unearned revenue 26,943 78,403 105,346
Total Liabilities 9,267,557 156,094 2,942,074 26,694 403,393 12,796,012
DEFERRED INFLOWS OF RESOURCES
Unearned revenue from real property taxes 5,340,419 1,171,556 717,229 7,229,204
FUND BALANCE
Nonspendable 1,042,750 169,329 144,718 1,356,797
Restricted 14,797,002 14,797,002
Assigned 2,532,277 477,668 1,985,159 4,995,104
Unassigned 4,536,927 (1,640,826) 2,896,101
Total Fund Balance(Deficit) 8,111,954 646,997 (1,640,826) 14,797,002 2,129,877 24,045,004
Total Liabilities,Deferred Inflows of Resources
and Fund Balance(Deficit) $22,719,930 $ 1,974,647 $ 1,301,248 $14,823,696 $ -0- $3,250,499 $44,070,220
See notes to the financial statements.
-18-
TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE
STATEMENT OF NET POSITION
December 31, 2015
Total Fund Balances-Governmental Funds $ 24,045,004
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Capital assets less accumulated depreciation are
included in the Statement of Net Position:
Capital assets-non-depreciable $ 127,649,432
Capital assets-depreciable 121,591,669
Accumulated depreciation (91,557,911)
157,683,190
Deferred outflows of resources are included in the Statement of Net Position 4,004,203
Long-term liabilities applicable to the Town's
governmental activities are not due and payable
in the current period and accordingly are not
reported in the funds. However these liabilities
are included in the Statement of Net Position:
General obligation bonds payable (33,370,944)
Compensated absences (8,924,108),
Claims and judgments payable (426,028)
Estimated liability for landfill closure
and postclosure care costs (442,888)
Net pension liability (1,926,748)
Other postemployment benefits payable (39,788,820)
(84,879,536)
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds. 325,963
Deferred inflows of resources,are included in the Statement of Net Position (229,233)
Interest payable applicable to the Town's governmental
activities are not due and payable in the current period
and accordingly are not reported in the funds. However
these liabilities are included in the Statement of Net Position. (385,991)
Net Position of Governmental Activities $ 100,563,600
See notes to financial statements.
-19-
TOWN OF SOUTHOLD
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year Ended December 31, 2015
MAJOR GOVERNMENTAL FUNDS
Non-Major
Capital Community Debt Governmental
General Highway Projects Preservation Service Funds Totals
REVENUES
Real property taxes $23,191,122 $ 4,641,266 $ 3,337,193 $31,169,581
Other real property tax items 84,468 4,641 344 89,453
Non-property tax items 1,019,873 $ 6,464,1 B4 624,435 8,108,492
Departmental income 378,566 2,200,869 2,579,435
Intergovernmental charges and local aid 201,872 735 202,607
Use of money and property 202,337 5,579 $ 31,081 14,879 25,000 278,876
Licenses and permits 334,392 15,737 181,540 531,669
Fines and forfeitures 285,314 285,314
Sale of property and compensation for loss 149,521 7,954 235,653 393,128
Miscellaneous local sources 44,569 8,500 77,711 130,780
Interfund revenues 30,000 30,000
State aid 1,488,134 644,078 49,985 12,824 137,721 2,332,742
Federal aid 178,359 69,196 4,919 52,539 305,013
Total Revenues 27,588,527 5,396,951 158,777 6,496,806 6,796,029 46,437,090
EXPENDITURES
Current
General government support 5,898,933 7,463 80,714 5,987,110
Public safety 9,843,839 1,353,166 11,197,005
Public health 40,964 40,964
Transportation 496,164 4,081,500 4,577,664
Economic assistance and opportunity 1,270,735 1,270,735
Culture and recreation 296,303 296,303
Home and community services 367,820 987,028 3,543,590 4,898,438
Employee benefits 8,603,849 1,545,987 1,191,379 11,341,215
Capital Outlay 2,120,204 2,120,204
Debt Service:
Principal 497,200 65,000 1,338,500 524,300 2,425,000
Interest 149,490 29,530 1,006,692 123,564 1,309,276
Bond issuance costs 102,900 102,900
Total Expenditures 27,465,297 5,729,480 2,120,204 3,332,220 102,900 6,816,713 45,566,814
Excess(Deficiency)of Revenues Over
Expenditures 123,230 (332,529) (1,961,427) 3,164,586 (102,900) (20,684) 870,276
Other Financing Sources(Uses)
Payments to refunded bond escrow agent (8,758,044) (8,758,044)
Refunding bond issues 7,882,000 7,882,000
Premiums on debt issuance 978,944 978,944
Transfers in 66,135 918,287 984,422
Transfers out (724,732) (129,737) (129,953) (984,422)
Total Other Financing Sources(Uses) (724,732) (63,602) 918,287 102,900 (129,953) 102,900
Net Change in Fund Balance (601,502) (396,131) (1,043,140) 3,164,586 (150,637) 973,176
Fund Balances(Deficit)at Beginning of Year 8,713,456 1,043,128 (597,686) 11,632,416 2,280,514 23,071,828
Fund Balances(Deficit)at End of Year $ 8,111,954 $ 646,997 _L(L640,826 $14,797,002 $ -0- $ 2,129,877 $24,045,004
See notes to the financial statements.
-20-
TOWN OF SOUTHOLD
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2015
Net Change in Fund Balance $ 973,176
Governmental funds report capital outlays as expenditures. However, in
the Statement of Activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense.The amount
by which capital outlay exceeds depreciation in the current period is:
Capital asset additions $ 5,199,496
Depreciation expense (3,104,273)
Loss on dispositions (31,447)
2,063,776
Revenues in the Statement of Activities that do not provide current financial
resources are not reported as revenues in the funds. (915)
Net change in deferred outflows of resources not reported in the governmental fund
statements:
Deferred charges on refundings 458,044
Pension related amounts 2,531,536
2,989,580
Net change in deferred inflows of resources related to pensions (229,233)
Premiums on bond issuances recognized in governmental fund statements when issued
and capitalized and amortized in the Statement of Activities (978,944)
The issuance of long-term debt and increase in obligations under capital
leases provides current financial resources to governmental funds,while the
repayment of the principal of long term debt and capital leases consumes
the current financial resources of governmental funds.
Neither transaction has any effect on net position.
Repayment of bond principal 2,425,000
Due to employees retirement system 66,909
Payments to refunded bond escrow agent (7,882,000)
Refunding bond issues 8,300,000
Compensated absences (385,434)
Claims and judgments payable (83,338)
Estimated liability for landfill closure
and postclosure care costs 453,042
Net pension liability (740,464)
Other postemployment benefits payable (4,393,272)
Accrued interest payable (30,025)
Change in Net Position of Governmental Activities $ 2,547,858
See notes to financial statements.
-21-
TOWN OF SOUTHOLD
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
December 31, 2015
Totals
ASSETS
Cash and investments $ 10,155,168
Other receivables 2,805
Total Assets $ 10,157,973
LIABILITIES
Due to other governments $ 9,534,471
Other liabilities 213,938
Deposits held 409,564
Total Liabilities $ 10,157,973
See notes to financial statements.
-22-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Southold (the `Town"), which was established in 1640, is governed by Town Law and other
general laws of the State of New York and various local laws. The Town Board is the legislative body
responsible for overall operations. The Town Board consists of the Supervisor who is elected for a term of
four years and five council members who are elected for terms of four years. The Town Board appoints the
Town Attorney and Town Comptroller. The Town Clerk, Receiver of Taxes, Superintendent of Highways,
Justices and Town Trustees are all elected and serve for four years, respectively. The Town provides a full
range of municipal services, including public safety, transportation, home and community services, public
works and road maintenance, recreation and parks, and general and administrative services.
The financial statements of the Town of Southold have been prepared in conformity with accounting principles
generally accepted in the United States of America (GAAP) as applied to governmental units. The
Governmental Accounting Standards Board (GASB) is the accepted standard setting body for establishing
governmental accounting and financial reporting principles.
The more significant of the government's accounting policies are described below.
1. REPORTING ENTITY
The financial reporting entity consists of: (a) the primary government, which is the Town of Southold; (b)
organizations for which the primary government is financially accountable; and (c) other organizations for
which the nature and significance of their relationship with the primary government are such that exclusion
would cause the reporting entity's financial statements to be misleading or incomplete.
The decision to include a potential component unit in the Town of Southold reporting entity is based on
several criteria including legal standing, dependency and financial accountability. The current guidance
also clarifies the status as a major or nonmajor component unit. Based on the application of these criteria,
the following is a summary of certain entities considered in determining the Town's reporting entity.
Discretely Presented Component Units:
The following entities are discretely presented component units of the Town of Southold:
a) Fishers Island Ferry District was established in 1947 by a special act of legislation within the State of
New York, known as the Ferry District Enabling Act. The Board of Commissioners is the legislative
body responsible for the overall operations. The Board of Commissioners consists of five members,
all of whom are elected by the residents of the District. The primary function of the District is to
provide ferry operations and services to district residents. Special districts cannot issue bonded debt
without the approval and the backing of the full faith and credit of the Town. The Town issues
indebtedness on behalf of the District which is responsible for the payment of annual debt service on
the obligations. Budgets and tax rates are not approved by the Town. Tax levies of the District are
collected by the Town Receiver of Taxes. This district is included in the Town's reporting entity since
the primary government issues debt on behalf of the District as these districts cannot issue bonded
debt without the approval and the backing of the full faith and credit of the Town.
b) Fishers Island Waste Management District was established in 1952 and is governed by the laws of
New York State. The Board of Commissioners is the legislative body responsible for the overall
operations. The Board of Commissioners consists of five members, all of whom are elected by the
residents of the District. The primary function of the District is to provide waste management and
disposal services to district residents. Special districts cannot issue bonded debt without the approval
and the backing of the full faith and credit of the Town. The Town issues indebtedness on behalf of
the District which is responsible for the payment of annual debt service on the obligations. Tax levies
of the District are collected by the Town Receiver of Taxes. This district is included in the Town's
reporting entity since the primary government issues debt on behalf of the District as these districts
cannot issue bonded debt without the approval and the backing of the full faith and credit of the Town.
-23-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
1. REPORTING ENTITY(continued)
Discretely Presented Component Units(continued):
c) Cutchogue-New Suffolk Park District was established in 1953 and is governed by the laws of New
York State.The Board of Commissioners is the legislative body responsible for the overall operations.
The Board of Commissioners consists of three members, all of whom are elected by the residents of
the District.The primary function of the District is to maintain and operate the specific private beaches
of residents who reside within the park district. Special districts cannot issue bonded debt without the
approval and the backing of the full faith and credit of the Town. The Town issues indebtedness on
behalf of the District which is responsible for the payment of annual debt service on the obligations.
Tax levies of the District are collected by the Town Receiver of Taxes. This district is included in the
Town's reporting entity since the primary government issues debt on behalf of the District as these
districts cannot issue bonded debt without the approval and the backing of the full faith and credit of
the Town.
d) Southold Park District was established in 1907 and is governed by the laws of New York State. The
Board of Commissioners is the legislative body responsible for the overall operations. The Board of
Commissioners consists of three members, all of whom are elected by the residents of the District.
The primary function of the District is to maintain and operate the specific private beaches of residents
who reside within the park district. Special districts cannot issue bonded debt without the approval
and the backing of the full faith and credit of the Town. The Town issues indebtedness on behalf of
the District which is responsible for the payment of annual debt service on the obligations. Tax levies
of the District are collected by the Town Receiver of Taxes. This district is included in the Town's
reporting entity since the primary government issues debt on behalf of the District as these districts
cannot issue bonded debt without the approval and the backing of the full faith and credit of the Town.
e) Orient-East Marion District was established in 1969 and is governed by the laws of New York State.
The Board of Commissioners is the legislative body responsible for the overall operations. The Board
of Commissioners consists of three members, all of whom are elected by the residents of the District.
The primary function of the District is to maintain and operate the specific private beaches of residents
who reside within the park district. Special districts cannot issue bonded debt without the approval
and the backing of the full faith and credit of the Town. The Town issues indebtedness on behalf of
the District which is responsible for the payment of annual debt service on the obligations. Tax levies
of the District are collected by the Town Receiver of Taxes. This district is included in the Town's
reporting entity since the primary government issues debt on behalf of the District as these districts
cannot issue bonded debt without the approval and the backing of the full faith and credit of the Town.
f) Mattituck Park District was established in 1941 and is governed by the laws of New York State. The
Board of Commissioners is the legislative body responsible for the overall operations. The Board of
Commissioners consists of three members, all of whom are elected by the residents of the District.
The primary function of the District is to maintain and operate the specific private beaches of residents
who reside within the park district. Special districts cannot issue bonded debt without the approval
and the backing of the full faith and credit of the Town. The Town issues indebtedness on behalf of
the District which is responsible for the payment of annual debt service on the obligations.Tax levies
of the District are collected by the Town Receiver of Taxes. This district is included in the Town's
reporting entity since the primary government issues debt on behalf of the District as these districts
cannot issue bonded debt without the approval and the backing of the full faith and credit of the Town.
g) Orient Mosquito District was established in 1916 and is governed by the laws of New York State.The
Board of Commissioners is the legislative body responsible for the overall operations. The Board of
Commissioners consists of five members, all of whom are elected by the residents of the District.The
primary function of the District is to provide pest control services to district residents. Special districts
cannot issue bonded debt without the approval and the backing of the full faith and credit of the Town.
The Town issues indebtedness on behalf of the District which is responsible for the payment of
annual debt service on the obligations.Tax levies of the District are collected by the Town Receiver of
Taxes. This district is included in the Town's reporting entity since the primary government issues
debt on behalf of the District as these districts cannot issue bonded debt without the approval and the
backing of the full faith and credit of the Town.
All of the Town of Southold's discretely presented component units are considered non-major.
-24-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
2. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
The Town's basic financial statements include both government-wide (reporting the Town as a whole)
and fund financial statements (reporting the Town's major funds).
Government-wide Financial Statements
The government-wide financial statements (i.e. the Statement of Net Position and the Statement of
Activities) report information on all of the non-fiduciary activities of the Town as a whole with separate
columns for the primary governmental activities as well as the discretely presented component units.
For the most part, the effect of interfund activity has been eliminated from the government-wide
financial statements, except for interfund services provided and used.
The government-wide Statement of Activities demonstrates the degree to which the direct expenses of
a given function are offset by program revenue. Direct expenses are those that are clearly identifiable
with a specific function. Program revenues include (1) charges to customers or applicants who
purchase, use, or directly benefit from goods, services, or privileges provided by a given function, (2)
grants and contributions that are restricted to meeting the operation and capital requirements of a
particular function, (3) interest earned on grants or capital projects that is required to be used to
support a particular program or project. Taxes and other items not properly included among program
revenues are reported as general revenues. The Town does not allocate indirect expenses to specific
functions in the Statement of Activities.
Fund Financial Statements
Separate financial statements are provided for governmental funds and fiduciary funds, even though the
fiduciary funds are excluded from the government-wide financial statements. Major individual
governmental funds are reported as separate columns in the fund financial statements.
The accounts of the Town are organized on the basis of funds, each of which is considered a separate
accounting entity. The operations of each fund are accounted for with a separate set of self-balancing
accounts that comprise its assets, liabilities, deferred inflows of resources, fund balances, revenues, and
expenditures, which are segregated for the purpose of carrying on specific activities or attaining certain
objectives in accordance with special regulations, restrictions or limitations. The various funds are
presented by type in the fund financial statements. Certain funds of the Town are utilized to account for
resources derived from and/or expenditures applicable to an area less than the entire Town. The focus of
the governmental funds financial statements is on the major funds. Accordingly, the Town maintains the
following fund types:
Governmental Funds-Governmental funds are those through which most governmental functions are
financed. The acquisition, use and balances of expendable financial resources and the related liabilities
are accounted for through governmental funds. The measurement focus of the governmental funds is
upon the determination of financial position and changes in financial position. Governmental funds are
further classified as major and nonmajor funds.
The Town reports the following major governmental funds:
General Fund - is the principal operating fund of the Town. This fund is used to account for all financial
resources not accounted for and reported in another fund.
Special Revenue Funds - are used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditures for specified purposes other than debt
service or capital projects.
-25-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
2. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS(continued)
Fund Financial Statements(continued)
Governmental Funds(continued)
Highway Fund - is a Special Revenue Fund used to account for revenues and expenditures for
highway purposes. The major areas of expenditures are repairs and improvements to roadways,
machinery, snow removal and miscellaneous.The major source of revenue is real property taxes.
Community Preservation Fund - is used to account for and report financial resources that are
restricted for the purchase of land and land development rights.
Capital Projects Fund - used to account for and report financial resources that are restricted,
committed, or assigned to expenditures for capital outlays, including the acquisition or construction
of major capital facilities and other capital assets.
Debt Service Fund - used to account for and report financial resources that are restricted, committed, or
assigned to expenditures for principal and interest and for financial resources that are being
accumulated for principal and interest in future years.
Additionally,the Town accounts for and reports the following non-major funds:
General Fund Part Town — is used to account for revenues and expenditures for certain services
provided by the area of the Town located outside of the Village of Greenport. The major source of
revenue is real property taxes and building permits.
Special Grant Fund — is used to account for federal aid for the Community Development Block
Grant Program.
Special District Funds — are used to account for taxes or other revenues, which are raised or
received to provide special services to areas that encompass less than the whole town. The
Special District Funds consist of a number of separate districts, which are administered by the
Town Board as follows: East-West Fire Protection District, Southold Wastewater District, Fishers
Island Sewer District and Solid Waste Management District.
Fiduciary Funds - Fiduciary Funds are used to account for assets held by the Town in a trustee or
custodial capacity.
Agency Fund - is used to account for money (and/or property) received and held in the capacity of
trustee,custodian or agent.
3. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION
Measurement focus refers to what is being measured whereas the basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial statements.
Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus
applied.
The government-wide statements are reported using the economic resources measurement focus and the
accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when the liability is incurred, regardless of the timing of related cash
flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar
items are recognized as revenue as soon as all eligibility requirements imposed by the provider have
been met.
-26-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
3. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENT
PRESENTATION (continued)
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measureable and available. Revenues are considered available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose,the Town
generally considers revenues to be available if they are collected within 60 days after the year end. In
certain circumstances this application of the Town's normal availability period for a given revenue source
might distort revenue trends from one year to the next. In such unusual circumstances, revenues may be
considered available if received beyond 60 days. However,to the extent the revenue remains uncollected
after one year the Town would classify the fund balance as nonspendable.
Revenues susceptible to accrual include Suffolk County local assistance at year end on behalf of the
Town, franchise fees, mortgage taxes and certain charges for services and intergovernmental revenues.
Permits, fees, and other similar revenues are not susceptible to accrual because generally they are not
measurable until they are received in cash. In those instances where expenditures are the prime factor in
determining eligibility for state and federal grants, revenues are recognized when the expenditure is
incurred. In the governmental funds, long-term debt is recognized as revenue upon receipt of the
proceeds. Expenditures generally are recorded when a liability is incurred, as under accrual accounting.
However, debt service expenditures, as well as expenditures related to due to New York State
employees' retirement system, compensated absences, claims and judgments, landfill closure and
postclosure care costs, and other postemployment healthcare cost benefits are recorded when payment
is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance
of long-term debt is reported as other financing sources and uses.
Because governmental fund statements are presented using a measurement focus and a basis of
accounting different from that used in the government-wide statements governmental column, a
reconciliation is presented that briefly explains the adjustment necessary to reconcile ending net position
and the change in net position.
4. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITION/FUND BALANCE
CASH AND INVESTMENTS
Cash consists of funds deposited in demand accounts, time deposit accounts and certificates of deposit
with maturities of less than three months.
State statutes govern the Town's investment policies.The Town's investments are governed by a formal
investment policy. The Town's monies must be deposited in FDIC-insured commercial banks or trust
companies located within the State. The Town is authorized to use demand accounts and certificates
of deposit. Permissible investments include obligations of the U.S. Treasury, U.S. Agencies and
investments made by the Cooperative Liquid Asset Security System (CLASS).
Collateral is required for demand deposits and time deposit accounts at 100% of all deposits not covered
by federal deposit insurance. Obligations that may be pledged as collateral include obligations of the
United States and its agencies, obligations of the State and its municipalities, and school districts. The
Town's collateral agreements are based on the Town's available balance.
-27-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
4. ASSETS, LIABILITIES DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITIOWFUND BALANCE (continued)
RECEIVABLES
Receivables include amounts due from Federal, State and other governments or entities for services
provided by the Town. Receivables are recorded and revenues recognized as earned or as specific
program expenditures are incurred.
DUE FROM/TO OTHER FUNDS
During the course of operations the government has activity between funds for various purposes. Any
residual balance outstanding at year-end are reported as due from/due to other funds. While these
balances are reported in fund financial statements, certain eliminations are made in the preparation of the
government-wide financial statements.
INVENTORY AND PREPAID ITEMS
Inventory is valued at cost and consists of supplies on hand. Inventory in these funds is accounted for
under the consumption method.
Certain payments to vendors reflect costs applicable to future accounting periods and are reported as
prepaid items in both the government-wide and fund financial statements. Prepaids in the general and
special revenue funds represent health insurance and retirement benefits that will benefit a future period.
In governmental funds, amounts reported as inventories and prepaid items are equally offset by
nonspendable fund balance amounts, indicating that they do not constitute "available spendable
resources"even though they are a component of net current assets.
CAPITAL ASSETS
Capital assets purchased or acquired with an original cost of $5,000 or more are reported at historical
cost or estimated historical cost. Donated assets are reported at estimated fair market value as of the
date of donation. Additions, improvements and other capital outlays that significantly extend the
useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed
as incurred. Depreciation and amortization on all assets is provided on the straight-line basis over the
following estimated useful lives:
Buildings 10-40 years
Improvements and other 20 years
Machinery and equipment 5-10 years
Software 5-10 years
Infrastructure 20-30 years
Infrastructure assets, consisting of certain improvements other than buildings including roads, curbs,
sidewalks, bridges,and street lighting are capitalized along with other capital assets.
Intangible assets lack physical substance, are nonfinancial in nature, and have an estimated useful life
extending beyond a single reporting period. The term depreciation, as used in these footnotes, includes
amortization of intangible assets.
In the fund financial statements, capital assets are recorded as capital outlay expenditures in the
governmental fund upon acquisition.
-28-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
4. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND
NET/POSITION/FUND BALANCE(continued)
UNEARNED REVENUE
Unearned revenues, reported as liabilities in the fund and government-wide financial statements, are
those which asset recognition criteria have been met, but which revenue recognition criteria have not
been met for exchange type transactions. Such amounts include collections in advance for fee income
relating to 2016.
DEFERRED OUTFLOWS/INFLOWS OF RESOURCES
In addition to assets, the statement of net position will sometimes report a separate section for deferred
outflows of resources. Deferred outflows of resources represents a consumption of net position that
applies to a future period(s) and so will not be recognized as an outflow of resources
(expenditure/expense) until that time. Deferred outflows of resources consist of deferred charges on
refundings and pension related amounts. The deferred charges on refundings stem from advanced
refunding of debt. The difference between the cost of securities placed in a trust for future payment of
refunded debt and the net carrying value of that debt is deferred and amortized as a component of interest
expense over the shorter of the term of the refunding issue or the original term of the refunded debt. The
amounts related to pensions consists of contributions made subsequent to the measurement date,
differences between the pension plans projected and actual investment earnings and differences between
the pension plans expected and actual experience.
In addition to liabilities, the statement of net position and balance sheet will sometimes report a separate
section for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not be
recognized as an inflow of resources (revenue) until that time. The Town's deferred inflows of resources
consists of the following: unavailable revenue and pension related amounts. The unavailable revenue
represents amounts that do not meet the availability criteria applicable to revenue recognition under the
modified accrual basis of accounting. Accordingly, the item unavailable revenue, is reported only in the
governmental funds balance sheet. These amounts are deferred and recognized as an inflow of
resources in the period the amounts become available. In the statement of net position, the Town reports
deferred outflows of resources associated with its pension and the amounts are derived from the changes
in proportion and differences between the Town's contributions and proportionate share of contributions.
PREMIUMS OF DEBT ISSUANCE
Premiums related to the issuance of long-term debt are amortized on a straight-line basis over the life of
the issue and are presented as part of the general obligation bonds payable in the non-current liabilities.
LONG-TERM OBLIGATIONS
In the government-wide financial statements, liabilities for long-term obligations consisting of general
obligation bonds, compensated absences, claims and judgments, liability for landfill closure and
postclosure costs, net pension liability, other postemployment benefits, and due to employees retirement
system are recognized in the statement of net position. Bond premiums or discounts are deferred and
amortized on a straight-line basis over the life of the bonds. Bonds payable are reported net of applicable
bond premium or discount. Bond issuance costs are expensed as incurred.
In the fund financial statements, governmental funds recognized bond premiums and discounts, as well
as bond issuance costs, during the current period. The face amount of the debt issued is reported as
other financing sources. Premiums received on debt issuances are reported as other financing sources
while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not
withheld from actual debt proceeds received, are reported as debt service expenditures.
-29-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
4. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND
NET/POSITION/FUND BALANCE (continued)
INTERFUND TRANSACTIONS
Interfund transactions, exclusive of interfund services provided and used, have been eliminated from the
government-wide financial statements. In the funds statements, interfund transactions include:
a) Interfund Revenues
In the general fund, interfund revenues, which are quasi-external transactions, represent amounts
charged for services or facilities provided by the general fund. The amount paid by the fund receiving
the benefit of the service or facilities is reflected as an expenditure of that fund.
b) Transfers
Transfers primarily represent payments to the capital projects fund from the other funds for their
appropriate share of the capital project costs or related BAN debt service amounts.
NET POSITION AND FUND EQUITY CLASSIFICATIONS
In the government-wide statements, equity is classified as net position and displayed in three
components:
a) Net investment in capital assets — Consists of capital assets including restricted capital assets,
net of accumulated depreciation and reduced by the outstanding balances of any bonds, notes, or
other borrowings that are attributable to the acquisition, construction, or improvement of those
assets. Accounts payable in the capital projects fund are capital related debt and are used in the
calculation of net investment in capital assets.
b) Restricted net position — Consists of net position with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, or laws or regulations of other
governments; or(2) law through constitutional provisions or enabling legislation.
c) Unrestricted — All other net position that does not meet the definition of "restricted" or "net
investment in capital assets."
In the fund financial statements, governmental funds report aggregate amounts for five classifications
of fund balances based on the constraints imposed on the use of these resources; they are (1)
nonspendable, (2) restricted, (3) committed, (4) assigned, or(5) unassigned.
1) Nonspendable fund balance includes amounts that cannot be spent because they are either (a)
not in spendable form (i.e. prepaid items or inventories), or (b) will not convert to cash within the
current period (i.e. long-term receivables and financial assets held for resale), or (c) legally or
contractually required to be maintained intact(i.e. the principal of a permanent fund).
The spendable portion of the fund balance comprises the remaining four classifications: restricted,
committed, assigned, and unassigned.
2) Restricted fund balance reflects the constraints imposed on resources either (a) externally by
creditors, grantors, contributors, or laws or regulation of other governments; or (b) imposed by law
through constitutional provisions or enabling legislation.
3) Committed fund balance reflects amounts that can only be used for specific purposes by a
government using its highest and most binding level of decision making authority. The Town's
highest decision making authority is the Town Board, who by adoption of a Town ordinance prior
to year end, can commit fund balance. Those committed amounts cannot be used for any other
purpose unless the Town Board removes or changes the specified use by taking the same type of
action imposing the commitment.
-30-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
4. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET
POSITIOWFUND BALANCE (continued)
NET POSITION AND FUND EQUITY CLASSIFICATIONS (continued)
4) Assigned fund balance reflects the amounts constrained by the Town's "intent" to be used for
specific purposes, but are neither restricted nor committed. The Town Board has the authority to
assign amounts to be used for specific purposes. Assigned fund balances include all remaining
amounts (except negative balances) that are reported in governmental funds, other than the
general fund, that are not classified as nonspendable and are neither restricted nor committed.
5) Unassigned fund balance is the residual classification for the general fund. It is also used to report
negative fund balances in other governmental funds.
NET POSITION AND FUND BALANCE FLOW ASSUMPTIONS
When outlays for a particular purpose can be funded from both restricted and unrestricted net position
resources it is the Town's policy to consider restricted — net position to have been depleted before
unrestricted—net position is applied.
When both restricted and unrestricted resources are available for use, it is the Town's default policy to
use restricted resources first, and then unrestricted resources—committed, assigned and unassigned
—in order as needed.
FUND BALANCE POLICIES
The Town has, by resolution, adopted a fund balance policy that states the Town must maintain a
minimum unassigned fund balance in the general fund equal to 10% of general fund expenditures. In
the event that the balance drops below the established minimum level, the Town's Board will develop
a plan to replenish the fund balance to the established minimum level within the current or ensuing
fiscal year.
5. REVENUES AND EXPENDITURES
REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES
Real property taxes are levied annually no later than December 1St and are recognized as revenue
January 1St of the year for which they were levied. The Town has its own Assessor's Office whose
responsibilities are independent and distinct from those of the Receiver of Taxes ("Receiver"). The Town
assessment rolls are used for the levy of property taxes by the Town and the school districts, as well as by
the County of Suffolk, New York("County")and by special districts based upon a single tax bill.
The Town of Southold Receiver of Taxes collects all real property taxes for the Town, Suffolk County,
Town Special Districts and School Districts. These taxes are levied on December 1, and are due in two
installments, 50% on December 1 and 50% on May 10, payable without penalty to January 10 and May
31, respectively. Penalties are imposed thereafter at the rate of one-twelfth of the rate of interest
determined by the State Commissioner of Taxation and Finance, after which taxes are payable to the
County Treasurer. The Town retains the total amount of Town, Highway and Town Special Districts
levies from the amount collected, and forwards the balance collected to the County which assumes
collection responsibility. The Town and Town's Special Districts therefore realize annually the 100%
collection of real property taxes.
f
-31-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
5. REVENUES AND EXPENDITURES(continued)
OTHER POSTEMPLOYMENT BENEFITS
In addition to providing pension benefits, the Town provides health insurance coverage and survivor
benefits for retired employees. Substantially all of the Town's employees may become eligible for these
benefits if they reach normal retirement age while working for the Town.
Health care benefits in accordance with New York State Health Insurance Rules and Regulations
(administered by the New York State Department of Civil Service), are provided through the New York
State Empire Plan (the "Empire Plan") whose premiums are based on the benefits paid throughout the
State during the year or under the Town of Southold's self-insurance plan which is further described in
Note D.
The Town recognizes the cost of providing benefits by recording its share of insurance premiums as an
expenditure in the year paid. The Town's union contracts and ordinances require that it provide its eligible
enrollees with Empire Plan benefit coverage, or if another provider is utilized, the equivalent coverage.
Under the provisions of the Empire Plan, premiums are adjusted on a prospective basis for any losses
experienced by the Empire Plan.The Town has the option to terminate its participation in the Empire Plan
at any time without liability for its respective share of any previously incurred loss. The liability for other
postemployment benefits payable is recorded as a non-current liability in the government-wide
statements.The current year increase in the liability is based on the most recent actuarial valuation.
COMPENSATED ABSENCES
The liability for vested or accumulated vacation or sick leave (compensated absences) is recorded as
current and non-current obligations in the government-wide statements. The current portion of this
debt is estimated based on historical trends and currently known facts. Compensated absence
liabilities and expenses are reported in governmental funds only if they have matured, for example, as
a result of employee resignations,terminations, and retirements.
The amount that is expected to be liquidated with expendable available financial resources is reported as
expenditures and a liability in the funds statement in the respective fund that will pay the liability.
PENSIONS
For purposes of measuring the net pension liability, deferred outflows of resources and deferred
inflows of resources related to pensions, and pension expense, information about the fiduciary net
position of the New York State and Local Retirement System ('the System') have been determined on
the same basis as they are reported by the System. For this purpose, the System recognizes benefit
payments when due and payable in accordance with the benefit terms; and reports investments at fair
value.
ENCUMBRANCES
Encumbrance accounting, under which purchase orders, contracts and other commitments for the
expenditures of monies are recorded for budgetary control purposes, is employed in the governmental
funds. Encumbrances are reported as restrictions, commitments, or assignments of fund balances since
they do not constitute expenditures or liabilities. Expenditures for such commitments are recorded in the
period in which the liability is incurred.
6. USE OF ESTIMATES
The preparation of basic financial statements, in conformity with accounting principles generally accepted
in the United States of America, requires management to make estimates and assumptions that affect the
reported amounts of assets, liabilities and deferred inflows of resources and, disclosure of contingent
amounts, at the date of the financial statements, and the reported amounts of revenues and expenditures
during the reporting period.Actual results could differ from those estimates.
-32-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(continued)
7. NEW ACCOUNTING PRINCIPLES
The Town has adopted all of the current Statements of the Governmental Accounting Standards Board
(GASB)that are applicable. During the year ended December 31,2015,the Town adopted:
Statement No. 68, Accounting and Financial Reporting for Pensions — An Amendment of GASB
Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to
the Measurement Date. These Statements establish financial reporting standards for state and local
governments which have defined benefit plans and defined contribution pension plans that are
administered through trusts or equivalent arrangements. The Statements establish standards for
measuring and recognizing liabilities, deferred outflows of resources, deferred inflows of resources
and expense/expenditures as related to defined benefit and contribution plans. The implementation of
this Statement resulted in reporting a restatement of the Town's net position (see Note G) and
required additional note disclosure as well as required supplementary information.
8. SUBSEQUENT EVENTS
Management has evaluated subsequent events for disclosure and/or recognition in the financial
statements through the date of the financial statements.
B. STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY
1. BUDGETARY INFORMATION
Budgets are adopted annually on a basis consistent with generally accepted accounting principles.
Appropriations authorized for the current year are increased by the amount of encumbrances carried
forward from the prior year.
Budgets for the general and special revenue funds exclusive of the special grant fund, are legally
adopted for each year. The budgets are adopted on a basis of accounting consistent with GAAP,
except that appropriations authorized for the current year are increased by the amount of
encumbrances carried forward from the prior years. In the event that unanticipated revenues are
received (i.e. specific grant revenues) and exceed budgeted amounts, additional budgetary
appropriations may be made. The capital projects and special grant funds are budgeted on a project
or grant basis.
The Town follows the procedures enumerated below in establishing the budgetary data reflected in the
financial statements:
a) No later than October 1, the Supervisor submits a tentative budget to the Town Board for the fiscal
year commencing the following fiscal year. The tentative budget includes the proposed means of
financing for all funds.
b) After public hearings are conducted to obtain taxpayer comments, no later than November 20, the
Town Board adopts the budget.
c) The Town Board must approve all modifications of the budget. However, the Supervisor is
authorized to transfer certain budgeted amounts within departments.
d) In June 2011, New York State enacted Chapter 97, Laws of 2011 Real Property Tax Levy Cap
and Mandate Relief Provisions, which includes a 2% property tax cap for municipalities. Beginning
in 2012 and lasting through at least June 15, 2020, no local government is authorized to increase
its property tax levy by more than 2% or the rate of inflation (whichever is less); however local
governments can exceed the tax levy limit by a 60% vote of the governing body and annually
adopting a local law.
-33-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
B. STEWARDSHIP,COMPLIANCE AND ACCOUNTABILITY(continued)
2. FUND BALANCE
The following table provides the detail regarding fund balance categories and classifications for the
governmental funds which show components of nonspendable fund balances, as well as the purposes for
restricted, and assigned fund balance.The unassigned fund balance is also shown.
Capital Community Other
General Highway Projects Preservation Governmental
Fund Fund Fund Fund Funds Total
Fund Balances:
Nonspendable:
Inventory $ 1,674 $ 1,674
Prepaid items 1,041,076 $ 169,329 $ 144,718 1,355,123
Total Nonspendable 1,042,750 169,329 -0- -0- 144,718 1,356,797
Restricted for:
Other reserves $ 14,797,002 14,797,002
Total Restricted -0- -0- -0- 14,797,002 -0- 14,797,002
Assigned to:
Subsequent year's budget 2,000,000 250,440 596,000 2,846,440
Purchases on order
or contractual obligatior 106,249 5,832 2,235 114,316
Special revenue funds 221,396 1,386,924 1,608,320
Judgments and claims 426,028 426,028
Total Assigned 2,532,277 477,668 -0- -0- 1,985,159 4,995,104
Unassigned,reported in
General Fund 4,536,927 4,536,927
Capital Projects (1,640,826) (1,640,826)
Total Unrestricted 4,536,927 -0- (1,640,826) -0- -0- 2,896,101
Total Fund Balances $8,111,954 $ 646,997 $(1,640,826) $ 14,797,002 $2,129,877 $24,045,004
3. FUND DEFICIT
The Capital Projects Fund deficit of$1,640,826 at December 31, 2015 resulted from differences in timing
between project expenditures and encumbrances and the recognition of corresponding permanent
financing sources. This deficit will be eliminated as short-term debt is redeemed or converted to
permanent financing.
C. DETAILED NOTES ON ALL FUNDS
1. CASH AND INVESTMENTS
Custodial Credit Risk — Deposits/ Investments — Custodial credit risk for deposits exists when, in the
event of the failure of a depository financial institution, a government may be unable to recover
deposits, or recover collateral securities that are in possession of an outside agency. Custodial credit
risk for investments exists when, in the event of the failure of the counterparty, a government will not
be able to recover the value of its investments or collateral securities that are in possession of an
outside party.
-34-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
1. CASH AND INVESTMENTS(continued)
CLASS is a cooperative investment plan consisting of U.S. Treasury Obligations and repurchase
agreements relating to treasury obligations. Investments are stated at cost, which approximates market
value. CLASS was established as a cooperative investment arrangement organized under the CLASS
Municipal Cooperation Agreement made pursuant to New York General Municipal Law, Article 3A and 5-
G.
Collateral is required for demand deposits and certificates of deposit not covered by federal depository
insurance. Obligations that may be pledged as collateral are obligations of the United States and its
agencies and obligations of the state and its municipalities and school districts.
Deposits are required to be disclosed as exposed to custodial credit risk if they are not covered by
depository insurance, and the deposits are either:
• Uncollateralized
• Collateralized with securities held by the pledging financial institution, or
• Collateralized with securities held by the pledging financial institution's trust department or agent but
not in the Town's name
At December 31, 2015, the Town's cash book balance was approximately $48,272,402. This amount is
inclusive of fiduciary fund deposits of$10,155,168 but exclusive of petty cash of$623.The available bank
balance was $48,296,603, exclusive of CLASS deposits. Of the bank balance, $12,504,809 was covered
by Federal deposit insurance, and $44,926,063 covered by collateral held by the Town's agent, a third-
party financial institution, in the Town's name and $82,438 was uncollateralized. The Town's $53,814
CLASS investment consists of U.S Treasury Obligations and repurchase agreements relating to Treasury
obligations and is not subject to risk categorization.
Credit Risk— State law and Town law limit investments to those authorized by State statutes. The Town
has a written investment policy.
Interest-Rate Risk—Interest-rate risk arises because potential purchasers of debt securities will not agree
to pay face value for those securities if interest rates substantially increase, thereby affording potential
purchasers more favorable rates on essentially equivalent securities. Accordingly, such investments
would have to be held to maturity to avoid a potential loss.
Concentration of Credit Risk — Credit risk can arise as a result of failure to adequately diversify
investments. Concentration risk disclosure is required for positions of 5 percent or more in securities of a
single issuer.
As of December 31, 2015, the Town did not have any investments subject to credit risk, interest-rate risk
or concentration of credit risk.
-35-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
2. INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Interfund receivable and payable balances for the primary government at December 31, 2015 are
expected to be paid currently. These balances represent various temporary loans, recharges, and
reimbursements between funds for operating and capital expenditures and are stated as follows:
Amount Amount
Receivable Payable
Major Governmental Funds:
General Fund-Town wide $ 1,167 $ 2,301,996
Highway Fund 1,173,898 23,622
Capital Projects Fund 332,518 1,166
Subtotal 1,507,583 2,326,784
Non-Major Governmental Funds:
General Fund- Part Town 163,637
East-West Fire Protection District 167,590
Southold Wastewater District 70
Fishers Island Sewer District 9,000
Solid Waste Management District 478,904
Subtotal 819,201 -0-
Total $ 2,326,784 $ 2,326 784
Interfund transfer balances for the primary government at December 31, 2015 represent primarily the
payment of BAN debt service expenditures and capital project transfers and are stated as follows:
Transfers Transfers
In Out
Major Governmental Funds:
General Fund-Town wide $ 724,732
Highway Fund $ 66,135 129,737
Capital Projects Fund 918,287
Subtotal 984,422 854,469
Non-Major Governmental Funds:
General Fund—Part Town 19,953
Southold Wastewater District 110,000
Subtotal -0- 129,953
Total $ 984,422 $ 984,422
-36-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
3. CAPITAL ASSETS
Balance Balance
Primary government 1/1/2015 Additions Deletions 12/31/2015
Capital assets not being depreciated
Land $ 7,634,797 $ 1,042,840 $ 8,677,637
Land development rights 116,878,970 711,093 117,590,063
Construction in progress 1,107,991 1,064,818 $ 791,077 1,381,732
Total capital assets not being depreciated 125,621,758 2,818,751 791,077 127,649,432
Depreciable capital assets
Buildings 13,270,215 59,395 13,329,610
Improvements other than buildings 15,765,606 84,185 15,849,791
Machinery and equipment 10,993,550 963,974 189,795 11,767,729
Software 1,109,657 177,382 167,983 1,119,056
Infrastructure 77,638,597 1,886,886 79,525,483
Total depreciable capital assets 118,777,625 3,171,822 357,778 121,591,669
Less accumulated depreciation
Buildings 4,889,618 351,610 5,241,228
Improvements other than buildings 7,052,870 553,317 7,606,187
Machinery and equipment 8,844,722 581,781 326,331 9,100,172
Software 769,277 137,465 906,742
Infrastructure 67,223,482 1,480,100 68,703,582
Total accumulated depreciation $ 88,779,969 $ 3,104,273 $ 326,331 91,557,911
Total net depreciable capital assets 30,033,758
Total net capital assets $ 157,683,190
Depreciation expense was charged to governmental functions as follows:
General government support $ 429,101
Public safety 329,543
Transportation 1,800,844
Economic assistance and opportunity 21,240
Culture and recreation 38,351
Home and community services 485,194
$ 3,104,273
-37-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
3. CAPITAL ASSETS (continued)
The Town evaluates prominent events or changes in circumstances affecting capital assets to
determine whether impairment of a capital asset has occurred. The Town's policy is to record an
impairment loss in the period when the Town determines that the carrying amount of the asset will not
be recoverable. At December 31, 2015, the Town has not recorded any such impairment losses.
Balance Balance
Nonmajor component units 1/1/2015 Additions Deletions 12/31/2015
Capital assets not being depreciated
Land $ 2,193,353 $ 90,191 $ 2,103,162
Total capital assets not being depreciated 2,193,353 $ -0- 90,191 2,103,162
Depreciable capital assets
Buildings 14,145,321 14,145,321
Improvements other than buildings 2,545,238 2,545,238
Machinery and equipment 4,003,629 7,495 4,011,124
Infrastructure 4,047,193 319,137 4,366,330
Total depreciable capital assets 24,741,381 326,632 -0- 25,068,013
Less accumulated depreciation
Buildings 4,407,239 451,260 4,858,499
Improvements other than buildings 761,842 97,814 859,656
Machinery and equipment 3,294,913 140,804 3,435,717
Infrastructure 2,220,375 164,452 2,384,827
Total accumulated depreciation $10,684,369 $ 854,330 $ -0- 11,538,699
Total net depreciable capital assets 13,529,314
Total net capital assets $ 15,632,476
Depreciation expense was charged to governmental functions as follows:
Transportation $ 602,848
Culture and recreation 107,971
Home and community services 143,511
$ 854,330
4. INDEBTEDNESS
SHORT TERM DEBT
Bond Anticipation Notes (BANs)— Bond anticipation notes (BANs) are used as a temporary means of
financing capital expenditures in the capital projects fund. State law requires that BANs issued for capital
purposes be converted to long-term obligations within five years after the original issue date. The notes or
renewal thereof may not extend more than two years beyond the original date of issue unless a portion is
redeemed within two years and within each 12 month period thereafter. Liabilities for BANs are generally
accounted for in the capital projects fund. BANs are expected to be paid from the proceeds of future bond
issues after renewal of these notes. These BANs bear interest at various rates from 1.27%to 1.75%and
are due at various dates through 2016.
A summary of changes in BANs for the year ended December 31,2015 is as follows:
Balance Balance
1/1/15 Increases Reductions 12/31/15
Primary Government $ 2,110,000 $ 1,173,000 $ 453,000 $ 2,830,000
Component Units 849,000 150.000 699,000
$ 2,959,000 $ 1,173,000 $ 603,000 $ 3,529,000
The reduction in the BANs payable for the primary government is included as a transfer in for the capital
projects fund.
-38-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
4. INDEBTEDNESS(continued)
LONG TERM DEBT
General Obligation Bonds—The Town borrows money in order to acquire land, equipment or construct
buildings and improvements. This enables the cost of these capital assets to be borne by the present and
future taxpayers receiving the benefit of the capital assets.
These long-term liabilities are backed by the full faith and credit of the Town, including bonds of the Town
Special Districts which are payable from tax revenues of the general fund and special revenue funds.
Interest rates on these bonds vary from 2.00% to 5.00% and have maturity dates in 2016 through
2030.
Future principal and interest payments to maturity for both the primary government and the component
units are as follows:
Primary Government Component Units
Years Ending
December 31, Principal Interest Totals Principal Interest Totals
2016 $ 2,361,000 $ 841,130 $ 3,202,130 $ 194,000 $ 34,493 $ 228,493
2017 2,441,000 786,145 3,227,145 194,000 27,639 221,639
2018 2,485,000 723,658 3,208,658 190,000 23,799 213,799
2019 2,055,000 667,804 2,722,804 190,000 19,049 209,049
2020 1,950,000 620,721 2,570,721 185,000 12,499 197,499
2021-2025 10,580,000 2,369,942 12,949,942 185,000 4,400 189,400
2026-2030 10,520,000 913,175 11,433,175
Total $32,392,000 $ 6,922,575 $39,314,575 $ 1,138,000 $ 121,879 $ 1,259,879
Advance Refunding of Bonds
During 2015, the Town issued $7,882,000 in Refunding Serial Bonds with interest rates ranging from
2.0%to 5.0%and annual maturities through March 2030.
The net proceeds of $8,758,044 (the par amount of the bonds plus a premium of $978,944 less
underwriter's fees, insurance and other issuance costs of $102,900), were used to refund $8,300,000 of
outstanding 2007 Series A and B Public Improvement Serial Bonds with interest rates ranging from 2.00%
to 5.00%.
The net proceeds were used to purchase U.S. Government Securities.Those securities were deposited in
an irrevocable trust with an escrow agent to provide for future debt service payments on the refunded
bonds. As a result, the refundable bonds are considered to be defeased, and the related liability for the
bonds has been removed from the governmental liabilities portion of the statement of net assets.
The refunding was done in order to reduce debt payments in the short-term.The refunding reduced future
total debt service payments by $1,991,536. The overall transaction resulted in an economic gain (the
difference between the present values of the debt service payments on the old and new debt)of$499,558
for the Town.
Defeasance of Debt
In the current year and in prior years,the Town of Southold defeased certain general obligation bonds by
placing the proceeds of new bonds in an irrevocable trust to provide for all future debt service payments
on the old bonds. Accordingly, the trust account assets and the liability for the defeased bonds are not
included in the Town's financial statements. At December 31, 2015, $1,300,000 of these bonds
outstanding are considered defeased.
-39-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
4. INDEBTEDNESS (continued)
CHANGES IN LONG-TERM LIABILITIES
Long-term liability activity for the year ended December 31,2015 is as follows:
As Restated Noncurrent
Balance Balance liabilities due Noncurrent
1/1/2015 Increases Reductions 12/31/2015 within one year liabilities
Primary Government:
General obligation bonds $35,235,000 $ 7,882,000 $10,725,000 $32,392,000 $ 2,361,000 $30,031,000
Add.Premiums on Obligations 978,944 978,944 69,925 909,019
Total General Obligation Bonds
Payable 35,235,000 8,860,944 10,725,000 33,370,944 2,430,925 30,940,019
Due to Employees Retirement
System 66,909 66,909 -0- -0-
Compensated absences 8,538,674 614,306 228,872 8,924,108 150,000 8,774,108
General claims and judgments liability 342,690 125,876 42,538 426,028 426,028
Estimated liability for landfill closure
and postclosure care costs 895,930 453,042 442,888 16,614 426,274
Net pension liability 2,667,212 740,464 1,926,748 1,926,748
Other postemployment benefits
payable 35,395,548 5,973,325 1,580,053 39,788,820 39,788,820
Component Units:
General obligation bonds 1,375,000 1,138,000 1,375,000 1,138,000 194,000 944,000
Compensated absences 213,432 54,092 159,340 39,835 119,505
Net pension liability 179,481 45,303 134,178 134,178
Other postemployment benefits payable 334,379 48,010 286,369 286,369
The liabilities for compensated absences, amounts due to employee's retirement system, net pension
liability and other postemployment benefits payable will be liquidated through future budgetary
appropriations in the funds that gave rise to the liability. In most instances these amounts will be
liquidated from the general funds, highway fund, and certain special revenue funds. Payments for
estimated claims and judgments will be liquidated primarily from the general fund. The estimated
liability for landfill closure and postclosure costs will be liquidated by the solid waste management
fund.
5. RETIREMENT SYSTEM
Plan Description
The Town of Southold participates in the New York State and Local Employees' Retirement System
(NYSERS) and Local Police and Fire Retirement System (PFRS) (the "System"). This is a cost-sharing
multiple-employer retirement system. The net position of the System is held in the New York Common
Retirement Fund ('Fund"), which was established to hold all net assets and record changes in fiduciary
net position allocated to the system.The Comptroller of the State of New York serves as the trustee of the
Fund and is the administrative head of the System. The Comptroller is an elected official determined in a
direct statewide election and serves a four year term. System benefits are established under the
provisions of the New York State Retirement and Social Security Law ("RSSL"). Once a public employer
elects to participate in the System,the election is irrevocable.
The New York State Constitution provides that pension membership is a contractual relationship and plan
benefits cannot be diminished or impaired. Benefits can be changed for future members only by
enactment of a State statute. The Town also participates in the Public Employees' Group Life Insurance
Plan ("GLIP"), which provides death benefits in the form of life insurance. The System is included in the
State's financial report as a pension trust fund. That report may be found at http://www.osc.state.ny.us/
retire/publications/index.php or obtained by writing to the New York State and Local Retirement
System, 110 State Street, Albany, NY 12244-0001.
-40-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
5. RETIREMENT SYSTEM (continued)
Benefits Provided
The System provides retirement benefits as well as death and disability benefits.
Tiers 1 and 2
Eligibility: Tier 1 members, with the exception of those retiring under special retirement plans, must be at
least age 55 to be eligible to collect a retirement benefit, there is no minimum service requirement. Tier 2
members, with the exception of those retiring under special retirement plans, must have five years of
service and be at least age 55 to be eligible to collect a retirement benefit. The age at which full benefits
may be collected for Tier 1 and Tier 2, is 55 and 62 respectively.
Benefit calculation: Generally, the benefit is 1.67% of final average salary for each year of service if the
member retires with less than 20 years. If the member retires with 20 or more years of service,the benefit
is 2% of final average salary for each year of service. Tier 2 members with five or more years of service
can retire as early as age 55 with reduced benefits.Tier 2 members age 55 or older with 30 or more years
of service can retire with no reduction in benefits. As a result of Article 19 of the RSSL, Tier 1 and 2
members who worked continuously from April 1, 1999 through October 1, 2000 received an additional
month of service credit for each year of credited service they have at retirement, up to a maximum of 24
additional months.
Final average salary is the average of the wages earned in the three highest consecutive years. For Tier 1
members who joined on or after June 17, 1971, each year of final average salary is limited to no more
than 20%of the previous year. For Tier 2 members, each year of final average salary is limited to no more
than 20%of the average of the previous two years.
Tiers 3, 4, and 5
Eligibility: Tier 3 and 4 members, with the exception of,those retiring under special retirement plans, must
have five years of service and be at least age 55 to be eligible to collect a retirement benefit. Tier 5
members, with the exception of those retiring under special retirement plans, must have ten years of
service and be at least 55 to be eligible to collect a retirement benefit. The full benefit age for Tiers 3, 4
and 5 is 62.
Benefit calculation: Generally the benefit is 1.67% of final average salary for each year of service if the
member retires with less than 20 years. If a member retires with between 20 and 30 years of service, the
benefit is 2%of final average salary for each year of service. If a member retires with more than 30 years
of service, an additional benefit of 1.5%of final average salary is applied for each year of service over 30
years. Tier 3 and 4 members with five or more years of service and Tier 5 members with ten or more
years of service can retire as early as age 55 with reduced benefits. Tier 3 and 4 members age 55 or
older with 30 or more years of service can retire with no reduction in benefits.
Final average salary is the average of the wages earned in the three highest consecutive years. For Tier
3, 4, and 5 members, each year of final average salary is limited to no more than 10% of the average of
the previous two years.
Tier 6
Eligibility: Tier 6 members, with the exception of those retiring under special retirement plans, must have
ten years of service and be at least age 55 to be eligible to collect a retirement benefit.The full benefit age
for Tier 6 members is age 63 for ERS members and 62 for PFRS members.
Benefit calculation: Generally, the benefit is 1.67% of final average salary for each year of service if the
member retires with less than 20 years. If a member retires with 20 years of service, the benefit is 1.75%
of final average salary for each year of service. If a member retires with more than 20 years of service,an
additional benefit of 2 % of final average salary is applied for each year of service over 20 years. Tier 6
members with ten or more years of service can retire as early as age 55 with reduced'benefits.
-41-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
5. RETIREMENT SYSTEM (continued)
Benefits Provided
Final average salary is the average of the wages earned in the five highest consecutive years. For Tier 6
members, each year of final average salary is limited to no more than 10%of the average of the previous
four years.
Special Plans
The 25-Year Plan allow a retirement after 25 years of service with a benefit of one-half of final average
salary, and the 20-Year Plan allow a retirement after 20 years of service with a benefit of one-half of final
average salary.These plans are available to certain PFRS members, sheriffs, and correction officers.
Ordinary Disability Benefits
Generally, ordinary disability benefits, usually one-third of salary, are provided to eligible members after
ten years of service; in some cases,they are provided after five years of service.
Accidental Disability Benefits
For all eligible Tier 1 and Tier 2 members, the accidental disability benefit is a pension of 75% of final
average salary, with an offset for any workers' compensation benefits received. The benefit for eligible
Tier 3, 4 and 5 members is the ordinary disability benefit with the years-of-service eligibility requirement
dropped.
Ordinary Death Benefits
Death benefits are payable upon the death, before retirement, of a member who meets eligibility
requirements as set forth by law.The first$50,000 of an ordinary death benefit is paid in the form of group
life term life insurance. The benefit is generally three times the member's annual salary. For most
members,there is also a reduced post-retirement ordinary death benefit available.
Post-Retirement Benefit Increases
A cost-of-living adjustment is provided annually to: 1) all pensioners who have attained age 62 and have
been retired for five years; 2) all pensioners who have attained age 55 and have been retired for ten
years; 3) all disability pensioners, regardless of age, who have been retired for five years; 4) recipients of
an accidental death benefit, regardless of age,who have been receiving such benefit for five years;and 5)
the spouse of a deceased retiree receiving a lifetime benefit under an option elected by the retiree at
retirement. An eligible spouse is entitled to one-half the cost-of-living adjustment amount that would have
been paid to the retiree when the retiree would have met the eligibility criteria. This cost-of-living
adjustment is a percentage of the annual retirement benefit of the eligible member as computed on a base
benefit amount not to exceed$18,000 of the annual retirement benefit.The cost-of-living percentage shall
be 50%of the annual consumer price index as published by the U.S. Bureau of Labor, but cannot be less
than 1%or exceed 3%.
Contributions
Plan members who joined the system before July 27, 1976 are not required to make contributions.
Those joining after July 27, 1976 and before January 1, 2010 with less than ten years of membership
are required to contribute 3% of their annual salary. Those joining on or after January 1, 2010 and
before April'1, 2012 are required to contribute 3% of their salary for NYSERS members throughout
active membership. Those joining on or after April 1, 2012 are required to contribute between 3% and
6%, depending upon their salary,throughout active membership. Under the authority of the NYSRSSL,
the Comptroller shall certify annually the actuarially determined rates expressly used in computing the
employers' contributions based on salaries paid during the System's year ended March 31.
-42-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
5. RETIREMENT SYSTEM (continued)
Contributions
The actual contributions were equal to 100% of the actuarially required amounts. The credits and
miscellaneous adjustments represent modifications made by the NYSERS to the prior year's
contributions due to differences between estimated and actual salaries for the plan year. Amortization
payments relate to the pension related debt, as discussed below. The required contributions as billed by
the Plan,for the Town,for the current year and two preceding years were:
ERS PFRS
2015 $ 2,142,633 $ 1,762,500
2014 2,266,683 1,455,243
2013 2,554,814 2,073,878
Pension Liabilities, Pension Expense, Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pension
Below is the Town's proportionate share of the net pension liability of the System and its related
employer allocation percentage.
Allocation of the
Net Pension System's Total
Measurement Date Liability Net Liability
ERS March 31,2015 $ 1,412,260 0.04180%
PFRS March 31,2015 514,488 0.18691%
The net pension liability was determined by an actuarial valuation as of April 1, 2015 and was based
on a projection of the Town's long-term share of contributions to the pension plan relative to the
projected contributions of all participating members. There was no significant change in the Town's
proportionate share from March 31, 2014 to March 31, 2015.
For the year ended December 31, 2015, the Town recognized pension expense of $2,423,657 of
which $1,270,005 relates to ERS and $1,153,652 relates to PFRS. At December 31, 2015 the Town
reported deferred outflows of resources and deferred inflows of resources related to pensions from the
following sources:
ERS PFRS Totals
Deferred Outflows of Resources:
Difference between expected and actual experience $ 45,208 $ 625044 $ 1075252
Net difference between projected and actual investment
earning on pension plan investments 245,291 172,731 418,022
Contributions made subsequent to the measurement date 1,660,774 1,3605111 3,020,885
Total Deferred Outflows of Resources-pension amounts $1,951,273 $1,594,886 $3,546,159
Deferred Inflows of Resources:
Changes in proportion and differences between the Town's
contributions and proporationate share of contributions $ 32,414 $ 196,819 $ 229,233
Total Deferred Inflows of Resources-pension amounts $ 32,414 $ 196,819 $ 229,233
-43-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
S. RETIREMENT SYSTEM (continued)
The reported deferred outflows of resources resulting from the Town's contributions made subsequent to
the measurement date will be recognized as a reduction of the net pension liability in the year ended
December 31,2016. Other amounts will be recognized in pension expense as follows:
ERS PFRS
'Ian Year Ended March 31, 2016 $ 64,521 $16,228
2017 64,521 16,228
2018 64,521 16,228
2019 64,521 16,228
2020 (26,955)
$ 258,084 $37,957
Actuarial Assumptions
The total pension liability as of the measurement date was determined by using an actuarial valuation
as noted in the table below, with update procedures used to roll forward the total pension liability to the
measurement date. The actuarial valuations used the following actuarial assumptions:
ERS PFRS
Actuarial Valuation Date April 1,2014 April 1,2014
Interest Rate 7.50% 7.50%
Salary scale:
Inflation 2.70% 2.70%
Productivity and merit 2.20% 2.70%
Total salary scale 4.90% 5.40%
Inflation rate 2.70% 2.70%
Decrement tables April 1,2005-March 2010 April 1,2005-March 2010
System's Experience System's Experience
Annuitant mortality rates are based on the April 1, 2005 — March 31, 2010 System's experience with
adjustments for mortality improvements based on MP-2014.
The actuarial assumptions used in the April 1, 2014 valuation are based on the results of an actuarial
experience study for the period April 1, 2005—March 31, 2010.
The long term rate of return on pension plan investments was determined in accordance with Actuarial
Standard of Practice (ASOP) No. 27, Selection of Economic Assumptions for Measuring Pension
Obligations. Consideration was given to using a building block method in which best estimate ranges
of expected future real rates of return (expected returns net of investment expense and inflation) are
developed for each major asset class. These ranges are combined to produce the long term expected
rate of return by weighting the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
5. RETIREMENT SYSTEM (continued)
Best estimates of the arithmetic real rates of return for each major asset class included in the target
asset allocation as of March 31, 2015 are summarized below:
Long-term
Target Expected Rate
Asset Type: Allocation of Return
Equity:
Domestice equity 38.00% 7.30%
International equity 13.00% 8.55%
Alternatives:
Private equity 10.00% 11.00%
Real estate 8.00% 8.25%
Other 9.00% 6.75-8.65%
Bonds and mortgages 18.00% 4.00%
Cash 2.00% 2.25%
Inflation indexed bonds 2.00% 4.00%
100.00%
The discount rate used to calculate the total pension liability was 7.5%for the System. The projection
of cash flows used to determine the discount rate assumes that contributions from plan members will
be made at the current contribution rates and that contributions from employers will be made at
statutorily required rates, actuarially. Based upon the assumptions, the Systems'fiduciary net position
was projected to be available to make all projected future benefit payments of current plan members.
Therefore the long term expected rate of return on pension plan investments was applied to all periods
of projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to the Discount Rate Assumption
The following presents the Town's proportionate share of the net pension liability calculated using the
discount rate of 7.5%, as well as what the Town's proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1-percentage point lower (6.5%) or 1-percentage
point higher(8.5%)than the current rate:
1.00% Current 1.00%
Decrease Assumption Increase
6.50% 7.50% 8.50%
Town's proportionate share of the
collective net pension liability/(asset)
ERS $ 9,413,318 $ 1,412,260 $ (5,342,619)
PFRS 6,850,135 514,488 (4,795,167)
Pension Plan Fiduciary Net Position
The components of the current-year net pension liability of the employers as of the respective
valuation dates were as follows:
Town's Proportionate Share
ERS PFRS
(Dollars in thousands) (Dollars in thousands)
Valuation Date April 1,2014 April 1,2014
Employers'total pension liability $ (164,591,504) $ 28,474,417
Plan net position 161,213,259 (28,199,157)
Employers'net pension liability $ (3,378,245) $ 275,260
Ratio of plan net position to the
Employers'total pension liability 97.95% 99.00%
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS(continued)
6. OTHER POSTEMPLOYMENT BENEFITS(OBLIGATIONS FOR HEALTH INSURANCE)
In the government-wide financial statements, the cost of postemployment healthcare benefits, like the
cost of pension benefits, generally should be associated with the period in which the cost occurs,
rather than in the future year when it will be paid. The Town recognizes the costs of postemployment
healthcare in the year when the employee benefits are received, reports the accumulated liability from
prior years, and provides information useful in assessing potential demands on the Town's future cash
flows. Recognition of the liability accumulated from prior years will be phased in over 30 years, which
commenced with the 2008 liability.
Plan Description
The Town, as a single-employer defined benefit OPEB plan, per its contracts with employees, will pay
full premium costs for medical insurance coverage (currently provided by the Empire Plan) at
retirement. Employees are eligible for retiree health insurance provided that the employee has been
eligible for coverage under the Town's health insurance plan for at least 10 consecutive years and is
employed by the Town on the last date immediately prior to retirement. The retiree and spouse are
eligible for full Medicare premium reimbursement. Healthcare benefits for non-union employees are
similar to those of union employees. Surviving spouses of deceased employees may continue
coverage by paying the premium equivalent for participants.
The number of participants as of January 1, 2015,the effective date of the OPEB valuation is as follows.
Active employees 202
Retirees and dependents 189
Surviving spouses 4
Total 395
There have been no significant changes in the number or type of coverage since that date.
Funding Policy
The Town currently pays for postemployment health care benefits on a pay-as-you-go basis.
Annual Other Postemployment Benefits Cost and Net Obligation
For the year ended December 31, 2015, the Town's annual other postemployment benefits cost
(expenses) were $5,973,325. Considering the annual expense as well as the payment of current health
insurance premiums, which totaled $1,580,053 for retirees and their beneficiaries, the result was an
increase in the other postemployment benefits liability of $4,393,272 for the year ended December 31,
2015.The Town's component units annual other postemployment benefits cost(expenses)were$37,430.
Considering the annual expense as well as the payment of current health insurance premiums, which
totaled $48,010 for retirees, the result was a decrease in the other postemployment benefits liability of
$10,580 for the year ended December 31,2015.
Benefit Obligations and Normal Cost as of December 31,2015
Governmental
Activities
Retired employees $ 32,934,145
Active employees 35,989,799
Unfunded actuarial accrued liability(UAAL) $ 68,923,944
The Town's annual other postemployment benefit cost is calculated based on the annual required
contribution (ARC) of the employer, an amount actuarially determined. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover the normal cost each year and amortize any
unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. The Town's
unfunded actuarial accrued liability for the year ended December 31,2015 amounted to$68,923,944.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
6. OTHER POSTEMPLOYMENT BENEFITS(OBLIGATIONS FOR HEALTH INSURANCE) (continued)
Annual Other Postemgloyment Benefits Cost and Net Obligation
The Town's annual other postemployment benefits cost, the amount actually paid and changes to the
Town's net other postemployment benefits obligation to the Plan for the year ended December 31, 2015
are as follows:
Normal Cost $ 2,665,507
Amortization of unfunded actuarial
liability(UAAL) over 30 years 3,726,053
Interest 239.684
Annual required contribution (ARC) 6,631,244
Interest on net other
postemployment benefits obligation 1,327,333
Adjustment to ARC (1,985.252)
Annual OPEB cost(expense) 5,973,325
Less:contribution for year ended
December 31,2014 1,580,053
Increase in net OPEB obligation 4,393,272
Net OPEB obligation-beginning of year 35,395,548
Net OPEB obligation-end of year $ 39,788,820
Percent of annual OPEB cost contributed 26.45%
Funded Status and Funding Progress:
The percentage contributed, as it relates to the Town of Southold,for the current year and preceding year
was:
Annual
Annual Contribution Percentage Net OPEB
OPEB Cost Made Contributed Obligation
2015 $ 5,973,325 $ 1,580,053 26.45% $ 39,788,820
2014 5,906,329 1,237,840 20.96% 35,395,548
2013 6,161,498 1,498,955 24.33% 30,727,059
The schedule of funding progress presents trend information about whether the actuarial value of plan
assets is increasing or decreasing over time relative to the actuarial accrued liability for benefits.
The funded status of the plan projected as of January 1,2015 is as follows:
Actuarial Accrued Unfunded UAAL as a Percentage
Value of Liability AAL Funded Covered of
Assets (AAL) (UAAL) Ratio Payroll Payroll
Town $ -0- $ 68,923,944 $ 68,923,944 0% $ 15,249,862 451.96%
Component Units -0- 496,030 496,030 0% 1,067,178 46.48%
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
C. DETAILED NOTES ON ALL FUNDS (continued)
6. OTHER POSTEMPLOYMENT BENEFITS(OBLIGATIONS FOR HEALTH INSURANCE) (continued)
Actuarial Methods and Assumptions:
The projection of future benefits for an ongoing plan involves estimates of the value of reported amounts
and assumptions about the probability of occurrence of future events far into the future. Amounts
determined regarding the funded status of a plan and the employer's annual required contributions are
subject to continual revision as actual results are compared with past expectations and new estimates are
made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as
understood by the employer and the plan members) and include the types of benefits provided at the time
of each valuation and the historical pattern of sharing benefit costs between the employer and plan
members to that point. The actuarial methods and assumptions used include techniques that are
designed to reduce the effects of short-term liability in actuarial accrued liabilities, consistent with the long-
term perspective of the calculations.
In the January 1, 2015 actuarial valuation, the liabilities were computed using the projected unit credit
cost method, level dollar amortization method, and an open year amortization period to amortize the
initial unfunded liability. The actuarial assumptions utilized a 3.75% discount rate. The valuation
assumes an 8.25% healthcare cost trend increase for the year, reduced by decrements down to
5.00% in fiscal year 2022.
7. COMPENSATED ABSENCES
Town employees are granted vacation and sick leave and earn compensatory absences in varying
amounts. In the event of termination or upon retirement, an employee is entitled to payment for
accumulated vacation and sick leave and unused compensatory absences at various rates subject to
certain maximum limitations. Estimated vacation, sick leave and compensatory absences accumulated
by governmental fund type employees have been recorded in the Statements of Net Position. Payment of
vacation time and sick leave is dependent upon many factors; therefore, timing of future payments is not
readily determinable. However, management believes that sufficient resources will be made available for
the payments of vacation, sick leave and compensatory absences when such payments become due. As
of December 31, 2015, the value of the accumulated vacation time and sick leave was$8,924,108 for the
primary government.
D. COMMITMENTS AND CONTINGENCIES
Risk Management
In common with other municipalities, the Town receives numerous notices of claims. The Town established
a self-insurance risk management program for general liability insurance which is accounted for in the
general fund. Although the eventual outcome of these claims cannot presently determined, the Town has
estimated unsettled claims and litigation to be $426,028 which is included as claims and judgments payable
in the government-wide financial statements and $6,198 is included as judgments and claims payable as a
current liability in the fund financial statements. The Town is of the opinion that the ultimate settlement of the
outstanding claims will not result in a material adverse effect on the Town's financial position.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
D. COMMITMENTS AND CONTINGENCIES (continued)
Risk Management(continued)
For the year ended December 31, 2015, the Town has a deductible liability exposure of$50,000 per claim
for general liability, $25,000 per claim for automobile liability, police liability and employee benefits, and
$10,000 per claim for public officials and employment practices. Any liability exposure above the
deductible amounts is covered by primary insurance policies up to $1,000,000 per claim for general
liability, public officials, police and employment practices, and employee benefits.
Aggregate exposures are $1,000,000 per claim for public officials, police and employment practices,
$3,000,000 for employee benefits and general liability. After primary policy limits are exhausted, the
excess exposure above the per claim or aggregate limits is covered by an umbrella liability policy of
$10,000,000 per claim and $10,000,000 in the aggregate.
In relation to the health insurance benefits that were self-insured, the self-funded plan was terminated as
of December 31, 2014 and coverage was provided through the New York State Insurance Program's
Empire Plan as of January 1, 2015.
There have been no significant reductions in insurance coverage as compared to the prior year and there
were no settlements in excess of insurance coverage over the last three years.
The Town reserves for general liability claims are determined by a third party administrator, and are reported
when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated.
Claims reserves for general liability claims are re-evaluated periodically to take into consideration recently
settled claims and any new developments and changes.
The Town's liabilities for medical claims outstanding at year end were reported by the third party
administrator and were recorded when the claim had been incurred and paid within 60 days of the year end.
The Town's discretely presented component units are not included in the Town's self-insurance risk
management program for any claims.
Fund balance is assigned for future catastrophic losses and is not available for other uses. Changes in the
liability for claims and judgments for the year ended December 31, 2015 and 2014 are as follows:
General
Medical Liability
2015 2014 2015 2014
Unpaid Claims as of December 31,
prior year $ 802,509 $ 200,999 $ 350,483 $ 14,843
Incurred Claims:
Provision for insured events
of the current fiscal year 1,976 4,195,052 124,281 395,484
Increase(decrease) in net provision for
insured events of prior fiscal years -0- 4,944 -0- (1,585)
Total Incurred Claims and
Claim adjustments 804,485 4,400,995 474,764 408,742
Payments of:
Claims during the current year 804,485 3,598,486 42,538 58,259
Unpaid Claims as of December 31,
current year $ -0- $ 802,509 $ 432,226 $ 350,483
-49-
TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
D. COMMITMENTS AND CONTINGENCIES (continued)
Contingent Liabilities
Amounts received or receivable from grant agencies are subject to audit and adjustment by grantor
agencies, principally the federal and state government. Any disallowed claims, including amounts already
collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures that may be
disallowed by the grantor cannot be determined at this time, although the Town expects such amounts, if
any, to be immaterial.
Landfill Closure and Post-Closure Care Costs
State and federal laws and regulations required the Town to place a final cover on its landfill sites and to
perform certain maintenance and monitoring functions at the sites for thirty years after closure. The Town
ceased accepting waste at its Cutchogue landfill as of October 8, 1993. Accordingly, as of December 31,
2015 the Town has recorded a liability of $442,888, in the government-wide financial statements which
represents the provision to be made in future budgets for unfunded closure and postclosure landfill costs. As
the liability is based on 100% of capacity there are no estimated costs of closure or postclosure remaining to
be recognized. Actual costs may vary due to inflation or deflation, changes in technology, or changes in
regulations or applicable laws. In July 2015, the NYS DEC approved the Town's request to go from quarterly
testing to semi-annual testing. As a result of this approval, the expected future costs to maintain the landfill
have decreased and the liability has been adjusted by$453,042 in the current year.
Construction and Other Capital Acquisition Commitments
The Town is committed to capital improvements to its various facilities and infrastructure. At December 31,
2015, these commitments amounted to$2,978,763 in the capital projects fund.
Animal Shelter Agreement
In May 2011, the Town entered into an agreement with the North Fork Animal Welfare League to operate
and manage the Town of Southold Animal Shelter. The agreement is for a term of four years commencing
on June 1, 2011. The agreement was renewed in March 2015 with the lease to begin March 2016 expiring
in February 2026.The future payments associated with this agreement are as follows:
2016 $ 185,403
2017 226,651
2018 231,651
2019 232,484
2020 232,484
2021-2025 1,162,420
2026 38,747
$ 2,309,840
Lease Commitments and Leased Assets
The Town leases property and equipment under operating leases. Total rental expenditures on such
leases for the year ended December 31, 2015 were $255,229. Future obligations over the primary terms
of the Town's leases as of December 31, 2015 are as follows:
2016 $ 163,653
2017 132,568
2018 111,470
2019 32,110
2020 25,412
2021-2025 75,576
Total $ 540,789
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
E. CONDENSED FINANCIAL STATEMENTS FOR THE DISCRETELY PRESENTED COMPONENT UNITS
The following represents condensed financial statements for the discretely presented component units as of
and for the year ended December 31,2015:
Condensed Statement of Activities:
Program General Revenue Net Position
Property As Restated
Expenses Revenue Net Expense Tax Other Change 1/1/2015 12/31/2015
Fishers Island
Ferry District $4,122,945 $2,834,576 $ 1,288,369 $ 788,116 $ 80,160 $ (420,093) $ 8,283,557 $ 7,863,464
Fishers Island Waste
Management District 763,807 43,559 720,248 558,653 1,999 (159,596) 3,493,280 3,333,684
Cutchogue-New Suffolk
Park District* 126,049 126,049 140,000 102 14,053 231,211 245,264
Southold Park District* 352,118 352,118 327,726 47,085 22,693 918,791 941,484
Orient-East Marion
Park District* 39,056 39,056 40,155 462 1,561 462,079 463,640
Mattituck Park District* 435,234 309,815 125,419 412,559 188,814 475,954 2,341,096 2,817,050
Orient Mosquito District' 84,066 84,066 86,700 17 2,651 32,408 35,059
$5,923,275 $3,187,950 $2,735,325 $2,353,909 $ 318,639 $ (62,777) $15,762,422 $15,699,645
*unaudited component units
Complete financial statements and financial records of these component units can be obtained from their
respective administrative offices:
Orient Mosquito District Fishers Island Waste
145 Platt Road Management District
Orient, NY Fishers Island, NY 06390
Cutchogue-New Suffolk Orient-East Marion
Park District Park District
P.O. Box 311 P.O. Box 12
Cutchogue, NY 11935 Orient, NY 11957
Southold Park District Mattituck Park District
P.O. Box 959 P.O. Box 1413
Southold, NY 11971 Mattituck, NY 11952
Fishers Island Ferry District
P.O. Box H
Fishers Island, NY 06390
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
F. 2%TRANSFER TAX
Transfer tax receipts are recorded in the Community Preservation Fund, and are used for the purchase and/or
preservation of agricultural land, open space, parks, or historic preservation sites. The tax applies to sales of
vacant land amounts in excess of$100,000 or sales of improved land in excess of$250,000. Conveyance of
real property for open space, parks or historic preservation purposes are exempt from this tax.
G. CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
For the fiscal year ended December 31, 2015, the Town implemented GASB Statement No. 68 Accounting
and Financial Reporting for Pensions—Amendment to GASB Statement No. 27 and GASB Statement No. 71
Pension Transition for Contributions Made Subsequent to the Measurement Date, an amendment to GASB
68. The implementation of Statement No. 68 and No.71 resulted in the retroactive reporting of a liability and
deferred outflow and inflow of resources related to the Town's participation in the NYS Local Employees
Retirement System and NYS Local Police and Fire Retirement System. As a result, the Town's January 1,
2015 governmental activities net position was decreased by$171,661 from$98,187,403 to$98,015,742.
Net position beginning of year, as reported $ 98,187,403
GASB Statements No. 68 and 71 implementation:
Beginning System liability-Employees'Retirement System (1,889,088)
Beginning System liability- Policy and Fire Retirement System (778,124)
Beginning deferred outflow of resources for contributions
subsequent to the measurement date:
Employees'Retirement System 1,447,002
Police and Fire Retirement System 1,048,549
Net position beginning of year, as restated $ 98,015,742
H. SUBSEQUENT EVENTS
In April 2016, the Town paid off the $729,000 BAN by redeeming a portion of the BAN and issuing
$550,000 in serial bonds. The annual interest rate on the serial bonds varies from 1.25%to 1.5% and has
a final maturity date of April 1, 2021.
In August 2016, the Town paid off the $2,800,000 BAN by redeeming a portion of the BAN and issuing
$4,613,000 in serial bonds for Town public improvements. The annual interest rate on the serial bonds
varies from 2%to 2.25%and has a final maturity date of August 15, 2034.
I. NEW PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) has issued the following Statements:
Statement No. 72 "Fair Value Measurement and Application" includes requirements that will enhance
the comparability of financial statements among governments by requiring the measurement of certain
assets and liabilities at fair value using a consistent and more detailed definition of fair value and
accepted valuation techniques. This Statement also will enhance fair value application guidance and
related disclosures in order to provide information to financial statement users about the impact of fair
value measurements on a government's financial position. The requirements of this Statement are
effective for financial statements for periods beginning after June 15, 2015.
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TOWN OF SOUTHOLD
NOTES TO FINANCIAL STATEMENTS
December 31, 2015
I. NEW PRONOUNCEMENTS(continued)
Statement No. 73 "Accounting and Financial Reporting for Pensions and Related Assets That Are Not
Within the Scope of GASB 68 - and amendments to Certain Provisions of GASB 67 and 68" the
objective is to clarify the existing guidance as well as establishes new requirements for pensions not
covered by Statement No. 67 and No. 68. The requirements of this Statement are effective for fiscal
years beginning after June 15, 2015 - except those provisions that address employers and
governmental nonemployer contributing entities for pensions that are not within the scope of Statement
68, which are effective for financial statements for fiscal years beginning after June 15, 2016.
Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than
Pensions, which outlines reporting by governments that provide OPEB to their employees and for
governments that finance OPEB for employees of other governments. The requirements of this
Statement are effective for financial statements for periods beginning after June 15, 2017.
Statement No. 76, "The Hierarchy of Generally Accepted Accounting Principles for State and Local
Governments,"the objective of which is to identify, in the context of the current governmental financial
reporting environment, the hierarchy of generally accepted accounting principles. The requirements of
this Statement are effective for financial statements for periods beginning after June 15, 2015, and
should be applied retroactively.
Statement No. 77, "Tax Abatement Disclosures," the objective of which is to improve financial reporting by
providing the users of financial statements with information about the nature and magnitude of tax
abatements, and helping the users understand how tax abatements affect a government's future ability to
raise resources and meet its financial obligations, as well as the impact on the government's financial
position and economic condition.The requirements of this Statement are effective for financial statements for
periods beginning after December 15,2015.
Statement No. 78, "Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans,"
amends the scope and applicability of Statement No. 68.This Statement establishes accounting and financial
reporting standards for defined benefit pensions provided to employees of a state or local governmental
employers through a cost-sharing multiple employer defined benefit pension plan that meets certain criteria
of Statement No. 68 and that (a) is not a state or local governmental pension plan, (b) is used to provided
defined benefit pensions both to employees of state/local governmental employers as well as to employees
of non-state/local governmental employers and (c) has no predominant state or local governmental employer,
either individually or collectively with other state or local governmental employers that provide pensions
through the pension plan. The requirements of this Statement are effective for financial statements for
periods beginning after December 15, 2015.
Statement No. 80, "Blending Requirements for Certain Component Units — an Amendment of Statement
No.14," the objective of which is to improve financial reporting by clarifying the financial statement
presentation requirements for certain component units. The requirements of this Statement are effective for
financial statements for periods beginning after June 15,2016.
Statement No. 82, "Pension Issues — an Amendment of Statements No. 67, 68, and 73," the objective of
which is to address issues regarding (a) the presentation of payroll-related measures in required
supplementary information, (b) the selection of assumptions and the treatment of deviations from the
guidance in an Actuarial Standard of Practice for financial reporting purposes, and (c) the classification of
payments made by employers to satisfy employee (plan member) contribution requirements. The
requirements of the Statement are effective for reporting beginning after June 15, 2016, except for the
requirements for selection of assumptions in a certain circumstance in which an employer's pension liability is
measured as of a date other than the employer's most recent fiscal year end. In that circumstance, the
requirements for the selection of assumptions are effective for that employer in the first reporting period in
which the measurement date of the pension liability is on or after June 15,2017.
The Town is currently evaluating the impact of the above pronouncements.
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REQUIRED SUPPLEMENTARY
INFORMATION OTHER THAN
MANAGEMENT DISCUSSION AND
ANALYSIS
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TOWN OF SOUTHOLD
GENERALFUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
9
Year Ended December 31, 2015
Variance
Original Final Positive
Budget Budget Actual Encumbrances (Negative)
REVENUES
Real property taxes $ 23,191,122 $ 23,191,122 $ 23,191,122 $ -0-
Other real property tax items 90,000 90,000 84,468 (5,532)
Non-property tax items 1,019,873 1,019,873 1,019,873 -0-
Departmental income 368,900 374,900 378,566 3,666
Intergovernmental charges and local aid 497,577 532,577 201,872 (330,705)
Use of money and property 236,000 236,000 202,337 (33,663)
Licenses and permits 276,535 276,535 334,392 57,857
'r Fines and forfeitures 185,500 185,500 285,314 99,814
Sale of property and compensation for loss 77,500 95,433 149,521 54,088
Miscellaneous local sources 35,675 56,010 44,569 (11,441)
Interfund revenues 30,000 30,000 30,000 -0-
State aid 1,120,500 1,147,350 1,488,134 340,784
Federal aid 12,500 209,246 178,359 (30,887)
Total Revenues 27,141,682 27,444,546 27,588,527 -0- 143,981
EXPENDITURES
Current.
t General government support 6,933,259 6,955,887 5,898,933 $ 13,481 1,043,473
Public safety 10,425,595 10,606,209 9,843,839 88,762 673,608
Public health 34,800 42,800 40,964 1,836
t Transportation 529,900 529,925 496,164 2,490 31,271
I Economic assistance and opportunity 1,501,991 1,497,532 1,270,735 492 226,305
! Culture and recreation 324,510 326,260 296,303 175 29,782
Home and community services 4009143 430,603 367,820 849 61,934
Employee benefits 9,362,244 9,324,604 8,603,849 720,755
Debt service:
j Principal 493,400 497,200 497,200 -0-
Interest 153,300 153,300 149,490 3,810
w
Total Expenditures 30,159,142 30,364,320 27,465,297 106,249 2,792,774
Excess(Deficiency)of Revenues
Over Expenditures (3,017,460) (2,919,774) 123,230 (106,249) 2,936,755
Other Financing Uses
C Transfers out (678,995) (750,894) (724,732) 26,162
6
Total Other Financing Uses (678,995) (750,894) (724,732) -0- 26,162
4
C Net Change in Fund Balance $ (3,696,455) $ (3,670,668) (601,502) $ (106,249) $ 2,962,917
C
I Fund Balance at Beginning of Year 8,713,456
Fund Balance at End of Year $ 8,111,954
0
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See notes to the financial statements.
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TOWN OF SOUTHOLD
HIGHWAY FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE - BUDGET AND ACTUAL
Year Ended December 31, 2015
Variance
Original Final Positive
Budget Budget Actual Encumbrances (Negative)
REVENUES
Real property taxes $ 4,641,266 $ 4,641,266 $ 4,641,266
Other real property tax items 7,700 7,700 4,641 (3,059)
Use of money and property 9,500 9,500 5,579 (3,921)
Licenses and permits 10,000 10,000 15,737 5,737
for loss 1,500 8,050 7,954 (96)
Miscellaneous local sources 8,500 8,500
State aid 420,619 562,221 644,078 81,857
Federal aid 183,868 69,196 (114,672)
Total Revenues 5,090,585 5,422,605 5,396,951 -0- (25,654)
EXPENDITURES
Current:
General government support 8,450 8,450 7,463 987
Transportation 3,719,088 4,428,952 4,081,500 $ 5,832 341,620
Employee benefits 1,665,798 1,605,574 1,545,987 59,587
Debt Service:
Principal 65,000 65,000 65,000 -0-
Interest 30,790 29,565 29,530 35
Total Expenditures 5,489,126 6,137,541 5,729,480 5,832 402,229
Excess(Deficiency)of Revenues
Over Expenditures (398,541) (714,936) (332,529) (5,832) 376,575
Other Financing Sources and Uses
Transfers In 66,135 66,135 -0-
Transfers out (130,000) (129,740) (129,737) 3
Total Other Financing Sources and Uses (130,000) (63,605) (63,602) -0- 3
Net Change in Fund Balance $ (528,541) $ (778,541) (396,131) $ (5,832) $ 376,578
Fund Balance at Beginning of Year 1,043,128
Fund Balance at End of Year $ 646,997
See notes to the financial statements.
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TOWN OF SOUTHOLD
COMMUNITY PRESERVATION FUND
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCE- BUDGET AND ACTUAL
Year Ended December 31, 2015
Variance
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
Non-property tax items $ 5,448,000 $ 5,448,000 $ 6,464,184 $ 1,016,184
Use of money and property 15,000 15,000 14,879 (121)
State aid 12,824 12,824
Federal aid 4,919 4,919
Total Revenues 5,463,000 5,463,000 6,496,806 1,033,806
EXPENDITURES
Current-
Home
urrentHome and community services 7,544,450 7,544,450 987,028 6,557,422
Debt service:
Principal 1,338,500 1,338,500 1,338,500 -0-
Interest 1,007,000 1,007,000 1,006,692 308
Total Expenditures 9,889,950 9,889,950 3,332,220 6,557,730
Excess(Deficiency)of Revenues
Over Expenditures (4,426,950) (4,426,950) 3,164,586 7,591,536
Net Change in Fund Balance $ (4,426,950) $ (4,426,950) 3,164,586 $ 7,591,536
Fund Balance at Beginning of Year 11,632,416
Fund Balance at End of Year $ 14,797,002
See notes to the financial statements.
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TOWN OF SOUTHOLD
POSTEMPLOYMENT BENEFITS HEALTHCARE COSTS-SCHEDULE OF FUNDING PROGRESS
Year Ended December 31, 2015
Unfunded
Liability as a
Actuarial Valuation Actuarial Value Actuarial Accrued Unfunded Funded Covered Percentage of
Date January 1, of Assets Liability Liability Ratio Payroll Covered Payroll
2015 $ -0- $ 68,923,944 $ 68,923,944 0.00% $ 15,249,862 451.96%
2014 -0- 68,001,588 68,001,588 0.00% 14,982,384 453.88%
2013 -0- 65,881,679 65,881,679 0.00% 14,268,937 461.71%
'These amounts are projected based on the rollforward calculation by the actuary.
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TOWN OF SOUTHOLD
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS
For the Year Ended December 31, 2015
Contributions
recognized by the plan Contribution
Contractually in relation to the Contribution as a percentage
Years Ended required contractually required defiency Covered of covered
December 31, contributions contributions (excess) payroll payroll
ERS
2015 $2,142,633 $ 2,142,633 $ -0- $ 11,429,154 18.75%
2014 2,266,683 2,266,683 -0- 11,076,674 20.46%
2013 2,554,814 2,554,814 -0- 10,713,710 23.85%
2012 2,066,738 2,066,738 -0- 10,813,507 19.11%
2011 1,827,936 1,827,936 -0- 10,343,478 17.67%
2010 1,265,284 1,265,284 -0- 10,193,620 12.41%
2009 794,550 794,550 -0- 10,502,285 7.57%
2008 932,918 932,918 -0- 10,277,355 9.08%
2007 980,628 980,628 -0- 9,707,731 10.10%
2006 1,096,547 1,096,547 -0- 9,057,129 12.11%
PFRS
2015 $1,762,500 $ 1,762,500 $ -0- $ 6,769,147 26.04%
2014 1,455,243 1,455,243 -0- 6,737,987 21.60%
2013 2,073,878 2,073,878 -0- 6,127,253 33.85%
2012 1,209,715 1,209,715 -0- 6,410,344 18.87%
2011 1,308,331 1,308,331 -0- 6,057,237 21.60%
2010 957,407 957,407 -0- 5,999,280 15.96%
2009 861,865 861,865 -0- 6,222,524 13.85%
2008 905,458 905,458 -0- 5,997,070 15.10%
2007 967,286 967,286 -0- 5,580,419 17.33%
2006 741,445 741,445 -0- 5,280,051 14.04%
Note-amounts presented for each year were determined as of December 31 st and
the contractually required contributions are based on the amounts invoiced by
the New York State Local Retirement System
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TOWN OF SOUTHOLD
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
For the Year Ended December 31, 2015
2015 2014
ERS
Town's proportion of the net
pension liability 0.4180% 0.4180%
Town's proportionate share of the net
collective pension liability $ 1,412,260 $ 1,889,088
Town's covered-employee payroll $11,429,154 $11,076,674
Town's proportionate share of the
net pension liability as a percentage
of its covered-employee payroll 12.36% 17.05%
Plan net position as a percentage of the
total pension liability coming from plan 97.90% 97.20%
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PFRS
Town's proportion of the net
pension liability 0.18691% 0.18691%
i
Town's proportionate share of the net
collective pension liability $ 514,888 $ 778,124
Town's covered-employee payroll $ 6,769,147 $ 6,737,987
i
'Town's proportionate share of the
net pension liability as a percentage
of its covered-employee payroll 7.61% 11.55%
Plan net position as a percentage of the
total pension liability coming from plan 99.90% 98.50%
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OTHER SUPPLEMENTARY
INFORMATION
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TOWN OF SOUTHOLD
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
December 31, 2015
Special Revenue Funds
j East-West Fire Southold Fishers Solid Waste Total
General Fund Special Protection Wastewater Island Sewer Management Non-Major
' Part Town Grant District District District District Funds
' ASSETS
Cash and investments $ 862,963 $ 25,775 $ 17,468 $ 49,916 $ 988,165 $1,944,287
Accounts receivable 151,530 89,574 241,104
Due from other funds 163,637 167,590 70 9,000 478,904 819,201
E State and federal aid receivables 62,359 $ 21,440 17,390 101,189
Prepaids 71,080 73,638 144,718
Total Assets $1,311,569 $ 21,440 $ 193,365 $ 17,538 $ 58,916 $1,647,671 $3,250,499
LIABILITIES
Accounts payable and accrued liabilities 25,729 21,440 13,136 4,074 260,611 324,990
Unearned revenue 30,283 9,000 39,120 78,403
Total Liabilities 56,012 21,440 13,136 -0- 13,074 299,731 403,393
DEFERRED INFLOWS OF RESOURCES
Unearned revenue from real property taxes 107,165 167,590 442,474 717,229
FUND BALANCE
Nonspendable 71,080 73,638 144,718
Assigned 1,077,312 12,639 17,538 45,842 831,828 1,985,159
Total Fund Balance 1,148,392 -0- 12,639 17,538 45,842 905,466 2,129,877
Total Liabilities,Deferred Inflows of
Resources and Fund Balance $1,311,569 $ 21,440 $ 193,365 $ 17,538 $ 58,916 $1,647,671 $3,250,499
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TOWN OF SOUTHOLD
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES
IN FUND BALANCES - NON-MAJOR GOVERNMENTAL FUNDS
For the Year Ended December 31, 2015
Special Revenue Funds
East-West Fire Southold Fishers Solid Waste Total
General Fund Special Protection Wastewater Island Sewer Management Non-Major
Part Town Grant District District District District Funds
REVENUES
Real property taxes $ 292,716 $ 764,836 $ 108,075 $ 2,171,566 $ 3,337,193
Other real property tax items 293 13 2 36 344
Non-property tax items 624,435 624,435
Departmental income 729,310 925 $ 23,209 1,447,425 2,200,869
Intergovernmental charges and local aid 735 735
Use of money and property 2,222 284 119 39 22,336 25,000
Licenses and permits 20,210 161,330 181,540
Sale of property and compensation for loss 235,653 235,653
State aid 109,630 28,091 137,721
Federal aid $ 52,539 52,539
Total Revenues 1,778,816 52,539 765,133 109,121 23,248 4,067,172 6,796,029
EXPENDITURES
General government support 54,304 26,410 80,714
Public safety 586,857 766,309 1,353,166
Home and community services 737,584 52,539 28,839 2,724,628 3,543,590
Employee benefits 569,760 621,619 1,191,379
Debt service.
Principal 6,000 518,300 524,300
Interest 803 3,395 119,366 123,564
Total Expenditures 1,948,505 52,539 766,309 803 38,234 4,010,323 6,816,713
Excess(Deficiency)of Revenues
Over Expenditures (169,689) (1,176) 108,318 (14,986) 56,849 (20,684)
Other Financing Uses:
Transfers out (19,953) (110,000) (129,953)
Total Other Financing Uses (19,953) -0- -0- (110,000) -0- -0- (129,953)
Net Change in Fund Balance (189,642) (1,176) (1,682) (14,986) 56,849 (150,637)
Fund Balances at Beginning of Year 1,338,034 -0- 13,815 19,220 60,828 848,617 2,280,514
Fund Balances at End of Year $ 1,148,392 $ -0- $ 12,639 $ 17,538 $ 45,842 $ 905,466 $ 2,129,877
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