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TOC_FY2018_CAFR.pdf
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FISCAL YEAR ENDING JUNE 30, 2018
NORTH CAROLINA
TOWN OF CARY www.townofcary.org Page 1Page 1
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TOWN OF CARY, NORTH CAROLINA
AS OF AND FOR THE YEAR ENDED JUNE 30, 2018
PREPARED BY THE TOWN OF CARY FINANCE DEPARTMENT:
Karen A. Mills, CPA, Chief Financial Officer Kimberly O. Branch, CPA, Assistant Finance Director
Mary Beth Huber, Deputy Treasurer Gregory L. Jenkins, II, Revenue Manager
Jessica Murphy-Rhem, CPA, Accounting Supervisor Seth E. Larson, CPA, Senior Accountant
Michelle C. Brooks, CPA, Financial Operations Analyst Jessica L. Randal, Accounting Manager
Judith K. DeNardis, Financial Reporting Analyst
TOWN OF CARY www.townofcary.org Page 3
TITLE PAGE __________________________________________________________________________________________ 1
TABLE OF CONTENTS _____________________________________________________________________________ 3 – 6
INTRODUCTORY SECTION LETTER OF TRANSMITTAL _________________________________________________________________________ 7 – 8
FY 2018 OVERVIEW ____________________________________________________________________________ 9 – 40
MEMBERS OF TOWN COUNCIL _______________________________________________________________________ 41
TOWN OF CARY MISSION STATEMENT AND STATEMENT OF VALUES ________________________________ 42
APPOINTED AND ADMINISTRATIVE STAFF __________________________________________________________ 43
ORGANIZATIONAL CHART___________________________________________________________________________ 44
RESPONSIBILITIES OF TOWN GOVERNMENT BY DEPARTMENT _________________________________ 45 – 51
TOWN BOARDS AND COMMISSIONS ________________________________________________________________ 52
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL REPORTING _______________________ 53
FINANCIAL SECTION
REPORT OF INDEPENDENT AUDITOR ___________________________________________________________ 55 – 56
MANAGEMENT’S DISCUSSION AND ANALYSIS _________________________________________________ 57 – 66
BASIC FINANCIAL STATEMENTS EXHIBIT
ENTITY-WIDE FINANCIAL STATEMENTS
A STATEMENT OF NET POSITION ___________________________________________________________ 68 – 69
B STATEMENT OF ACTIVITIES ____________________________________________________________________ 70
GOVERNMENT FUND FINANCIAL STATEMENTS
C BALANCE SHEET – GOVERNMENTAL FUNDS _____________________________________________ 72 – 73
D RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION _________________________________________________ 74
E STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS _______________________________________________________________________ 75
F RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES _________________________________________________________________________________ 76
G GENERAL FUND – BUDGETARY COMPARISON STATEMENT ______________________________ 77 – 83
H TRANSIT SPECIAL REVENUE FUND – BUDGETARY COMPARISON STATEMENT _________________ 84
I EMERGENCY TELEPHONE SYSTEM SPECIAL REVENUE FUND – BUDGETARY COMPARISON STATEMENT ______________________________________________________ 85
PROPRIETARY FUND FINANCIAL STATEMENTS
J STATEMENT OF NET POSITION – PROPRIETARY FUNDS __________________________________ 88 – 89
K STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION – PROPRIETARY FUNDS ________________________________________ 90 – 91
L STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS ___________________________________ 92 – 93
NOTES TO THE BASIC FINANCIAL STATEMENTS ________________________________________ 95 – 138
TABLE OF CONTENTS
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REQUIRED SUPPLEMENTARY INFORMATION LAW ENFORCEMENT SEPARATION ALLOWANCE REQUIRED SUPPLEMENTAL INFORMATION _______ 140
LOCAL GOVERNMENT EMPLOYEE RETIREMENT SYSTEM REQUIRED SUPPLEMENTAL INFORMATION ___________________________________________________________________ 141
OTHER POST-EMPLOYMENT BENEFITS REQUIRED SUPPLEMENTAL INFORMATION _________________ 142
SUPPLEMENTARY INFORMATION SCHEDULE
CAPITAL PROJECT FUND
1 CAPITAL PROJECT FUND - SUB-FUND COMBINING BALANCE SHEET__________________________ 144
2 CAPITAL PROJECT FUND – SUB-FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES _________________________________________ 145
3 STREET PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ___________________________ 146 – 150
4 DOWNTOWN PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ____________________________ 151 – 152
5 PARKS, RECREATION AND CULTURAL RESOURCES PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ________________________________________________________________ 153 – 156
6 FIRE PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ____________________________ 157 – 158
7 GENERAL GOVERNMENT PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ___________ 159 – 161
8 GENERAL CAPITAL RESERVE SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL ___________________________________ 162
UTILITY SYSTEM ENTERPRISE FUND
9 UTILITY SYSTEMS ENTERPRISE FUND - SUB-FUND COMBINING SCHEDULE OF NET POSITION ________________________________________________________________________ 164 – 165
10 UTILITY SYSTEMS ENTERPRISE FUND - SUB-FUND COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION ___________________________________________ 166
11 UTILITY SYSTEM OPERATIONS SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION - BUDGET AND ACTUAL (NON-GAAP) __________ 167 – 171
12 WATER PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION - BUDGET AND ACTUAL (NON-GAAP) __________ 172 – 176
13 SEWER PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION - BUDGET AND ACTUAL (NON-GAAP) __________ 177 – 182
14 UTILITY SYSTEM CAPITAL RESERVE SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION - BUDGET AND ACTUAL (NON-GAAP) ________________________________________________________________________ 183
INTERNAL SERVICE FUNDS
15 INTERNAL SERVICE FUNDS - COMBINING SCHEDULE OF NET POSITION _____________________ 186
16 INTERNAL SERVICE FUNDS - COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION ______________________________________________________ 187
17 INTERNAL SERVICE FUNDS - COMBINING SCHEDULE OF CASH FLOWS ________________ 188 - 189
18 FLEET MANAGEMENT INTERNAL SERVICE FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION - BUDGET AND ACTUAL (NON-GAAP) ________________________________________________________________________ 190
19 HEALTH INSURANCE INTERNAL SERVICE FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION - BUDGET AND ACTUAL (NON-GAAP) __________________________________________________________________ 191 – 192
TABLE OF CONTENTS
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TABLE OF CONTENTS OTHER FUND SCHEDULES
20 COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND BUDGETARY COMPARISON STATEMENT – MULTI-YEAR _______________________________ 193 – 194
21 ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND BUDGETARY COMPARISON STATEMENT – MULTI-YEAR ___________________________________________________ 195
STATISTICAL SECTION (UNAUDITED)
TABLE
1 NET POSITION BY COMPONENT, LAST TEN FISCAL YEARS ___________________________________ 200
2 CHANGES IN NET POSITION, LAST TEN FISCAL YEARS ________________________________ 201 – 202
3 FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS ________________________ 203
4 CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS, LAST TEN FISCAL YEARS ___ 204 – 205
5 GOVERNMENTAL FUND EXPENDITURES BY FUNCTION, LAST TEN FISCAL YEARS _____________ 206
6 UTILITY SYSTEM ENTERPRISE FUND EXPENDITURES BY FUNCTION, LAST TEN FISCAL YEARS ____________________________________________________________________ 207
7 GOVERNMENTAL FUND REVENUES BY SOURCE, LAST TEN FISCAL YEARS ___________________ 208
8 UTILITY SYSTEM ENTERPRISE FUND REVENUES BY SOURCE, LAST TEN FISCAL YEARS ______ 209
9 ASSESSED VALUE OF TAXABLE PROPERTY, LAST TEN FISCAL YEARS ________________________ 212
10 COMPARISON OF TOWN OF CARY AND COUNTY ASSESSED VALUES, LAST TEN FISCAL YEARS _____________________________________________________________________ 213
11 PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS, LAST TEN FISCAL YEARS ____________________________________________________________________ 214
12 PRINCIPAL PROPERTY TAXPAYERS, NINE YEARS AGO AND CURRENT YEAR _________________ 215
13 PROPERTY TAX LEVIES AND COLLECTIONS, LAST TEN FISCAL YEARS ________________________ 216
14 AD VALOREM TAXES RECEIVABLE, CURRENT YEAR AND LAST NINE FISCAL YEARS __________ 217
15 ANALYSIS OF CURRENT TAX LEVY ___________________________________________________________ 218
16 RATIOS OF OUTSTANDING DEBT BY TYPE, LAST TEN FISCAL YEARS _________________________ 220
17 RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA, LAST TEN FISCAL YEARS _______________________________________________________ 221
18 COMPUTATION OF LEGAL DEBT MARGIN, LAST TEN FISCAL YEARS __________________________ 222
19 COMPUTATION OF DIRECT AND OVERLAPPING DEBT ________________________________________ 223
20 BOND COVERAGE COMBINED ENTERPRISE SYSTEM BONDS, LAST TEN FISCAL YEARS _______ 224
21 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR BONDED DEBT TO TOTAL GENERAL EXPENDITURES, LAST TEN FISCAL YEARS _________________________________________ 225
22 DEMOGRAPHIC STATISTICS, LAST TEN FISCAL YEARS _______________________________________ 228
23 PRINCIPAL EMPLOYERS, NINE YEARS AGO AND CURRENT YEAR ____________________________ 229
24 COMMERCIAL ACTIVITY, LAST TEN FISCAL YEARS ___________________________________________ 230
25 EMPLOYEE POSITION AUTHORIZATION BY DEPARTMENT, LAST TEN FISCAL YEARS __________ 232
26 OPERATING INDICATORS BY FUNCTION/PROGRAM, LAST TEN FISCAL YEARS ________ 233 – 234
27 CAPITAL ASSETS BY FUNCTION/PROGRAM, LAST TEN FISCAL YEARS ________________________ 235
28 INSURANCE IN FORCE, JULY 1, 2016 - JUNE 30, 2017 _______________________________ 236 – 238
29 TOP TEN UTILITY CUSTOMERS _______________________________________________________________ 239
30 UTILITY RATE INFORMATION, APPROVED OPERATING BUDGET ORDINANCE __________ 240 – 243
31 DEVELOPMENT FEE REVENUE ________________________________________________________________ 244
TOWN OF CARY www.townofcary.org Page 6
TABLE OF CONTENTS COMPLIANCE SECTION
FEDERAL AND STATE AWARDS COMPLIANCE
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS _____________________ 245 – 247
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS _________________ 248
REPORT OF INDEPENDENT AUDITOR ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS ___ 249
REPORT ON COMPLIANCE FOR EACH MAJOR FEDERAL PROGRAM; REPORT ON INTERNAL CONTROL OVER COMPLIANCE; WITH THE OMB UNIFORM GUIDANCE AND THE STATE SINGLE AUDIT IMPLEMENTATION ACT _______________________________________________________ 251
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO EACH MAJOR STATE PROGRAM AND INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE UNIFORM GUIDANCE AND THE STATE SINGLE AUDIT IMPLEMENTATION ACT _________________ 253
SCHEDULE OF FINDINGS AND QUESTIONED COSTS ___________________________________ 255 – 258
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS ____________________________________ 259
COVENANT COMPLIANCE
REPORT OF INDEPENDENT AUDITOR ON REVENUE BOND COVENANT ________________________ 261
REVENUE BOND STATEMENT OF REVENUES, EXPENSES, DEBT SERVICE, AND DEBT SERVICE COVERAGE _______________________________________________________ 263 – 264
INTRODUCTORY SECTION
October 31, 2018 The Honorable Mayor Harold Weinbrecht Members of the Town Council Citizens Town of Cary 316 N. Academy Cary, North Carolina 27513 Dear Mayor, Members of the Town Council, and Citizens: The Comprehensive Annual Financial Report of the Town of Cary, North Carolina (“the Town”) documents the Town’s financial position and results of operations as of and for the fiscal year ended June 30, 2018. This report is published in accordance with Generally Accepted Accounting Principles (GAAP), set forth by the Governmental Accounting Standards Board. Town management is responsible for both the accuracy of the data and the completeness and fairness of the report. To ensure reliability of the information, management has established a comprehensive framework of internal control. Internal controls protect the Town’s assets from loss, theft and misuse and help ensure that information is reliable for the preparation of this report. Because the cost of internal controls should not outweigh their benefits, the Town’s controls have been designed to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. On behalf of the management team, to the best of our knowledge and
belief, this financial report is complete, accurate and reliable in all material respects. Cherry Bekaert LLP, concluded in an unmodified (commonly referred to as “clean”) opinion that the financial statements present fairly in conformity with GAAP, in all material respects, the financial position and changes in financial position for the Town of Cary, North Carolina, as of June 30, 2018. The goal for the audit is to provide reasonable assurance that the financial statements of are free of material misstatement. To provide further accountability, this report includes notably more information and analysis than just the basic financial statements, and as such is titled the Comprehensive Annual Financial Report, commonly referred to as the CAFR. The report is comprised of four primary sections. The Introductory Section includes this letter of transmittal, Town Council introductions, an organization chart and responsibilities of Town government by department, and a certificate of achievement for excellence in financial reporting. New this year is a FY 2018 Overview. This management overview provides the reader a high level review of the financial planning and strategy that affect financial outcomes for the Town of Cary. The impacts of the local and national economy are also addressed. Additionally, the overview highlights some of the year’s best stories that demonstrate how Town resources were invested in employees, services and projects to support the vision outlined in the Imagine Cary Community Plan. These stories are organized to match the Community Plan sections on Work, Shop, Engage, Shape, Move, Serve, and Act. The Financial Section includes the report of the independent auditors, Management’s Discussion and Analysis (MD&A), the basic financial statements, including the government-wide financial statements comprised of the Statement of Net Position and the Statement of Activities and the accompanying notes to the financial statements.
www.townofcary.org
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FY 2018 OVERVIEW New in FY 2018, this overview highlights key financial results and financial management practices as well as how Town resources have been invested to accomplish the vision set forth in the Imagine Cary Community Plan.
EXECUTIVE SUMMARY The Town of Cary remains in excellent financial condition following another year of positive financial results. The foundation is in place to continue to provide excellent services and future capital investments that will best fulfill the vision and highest priorities in the Imagine Cary Community Plan. This assessment is consistent with Cary’s top bond ratings which reflect the opinions of independent government finance experts on Cary’s financial management. Cary has maintained AAA ratings from all three bond rating agencies for the Town’s general obligation bonds and the Town’s utility system revenue bonds. This crucial benchmark of excellence is a source of pride for Town Council and staff. Cary’s financial management is designed to maintain these high marks.
The Town is in the midst of a transformation to better prepare for the future. A strong foundation is in place, but the development growth patterns that generated notable revenue growth in the past are changing. The community continues to grow, however, at a slower pace. Along with aging infrastructure, the pressure on decision makers to choose their highest priorities for community improvements will increase. Staff is working with new energy to collaboratively break down silos, imagine and implement new efficiencies, improve decision making tools, and develop employees to create a new model of local government that will ensure Cary remains successful in the future.
PROFILE OF THE TOWN OF CARY
Cary is a thriving community of approximately 164,000 citizens in the heart of the Triangle area of North Carolina. Cary and the Triangle area have repeatedly ranked among the top regions in the country to live, work, start a business, raise a family and retire. Cary encompasses approximately 60 square miles in Wake and Chatham counties in the Piedmont region of the state. Cary adjoins the City of Raleigh, which is the state capital and the county seat, at the Town’s southwestern boundary. At the Town’s northwestern boundary, the Town adjoins renowned Research Triangle Park (“RTP”).
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Cary is a diverse community primarily composed of young, affluent and well- educated people. According to the 2010 US census, the median age of Cary’s population is 35.9 years. According to the American Community Survey, over 60 percent of Cary’s adult population has a college degree, and over 19 percent were born in another country.
Several attributes contribute to continued growth in commercial and residential construction. Cary’s attractive development, diversity, historically strong employment, higher education opportunities, warm climate, low crime rates and easy access to outstanding recreational and cultural amenities provide citizens with a high quality of life.
Cary and the surrounding area continue to perform very well in numerous rankings such as the best places to launch a new business, best places for creating and keeping jobs, and quality of life measures. New residential development statistics are highlighted in the Live section of this overview, and commercial activity is addressed in the Shape section of this overview.
HISTORY A settlement called Bradford’s Ordinary was founded in this location in 1750. In 1854, a farmer and lumberman named Allison Francis “Frank” Page and his wife, Catherine “Kate” Raboteau Page bought three hundred acres of land and established several enterprises.
He named his development after Samuel Fenton Cary, a prohibition leader from Ohio whom Page admired. Frank Page was Cary’s first developer, mayor, postmaster and railroad agent. Page, whose main business was a sawmill, laid out the first streets of Cary and built a hotel. What became known as the Page- Walker Hotel is now an arts and history center on Town Hall campus and is listed on the National Register of Historic Places. The extension of the railroads through Cary and a junction of the Seaboard and North Carolina railroads enabled the town to flourish, and on April 6, 1871, the Town of Cary was incorporated.
One of Frank and Kate Page’s sons is Cary’s most famous son. Walter Hines Page (1855-1918) was an editor, publisher, social reformer and proponent of public education. He was ambassador to Great Britain during World War I. The British honored him with a tablet in Westminster Abbey.
A prestigious, private boarding school developed here in the late 1800’s and this school later became famous as the first public high school in North Carolina. The school was located on the site now occupied by the Cary Arts Center, a vibrant and robust center for arts activity for the residents of Cary.
With the development of Research Triangle Park in the 1960s, Cary began to grow as a bedroom community from a quiet town of a few thousand people. In 1963, the charter was amended by the State Legislature to provide for a Council- Manager form of Government. Growth escalated during the 1970s, with the population nearly tripling to 21,763. After doubling during the 1980s and 1990s, the population as of June 30, 2018, is estimated to be 163,930, representing a
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TOWN OF CARY www.townofcary.org Page 11
21% increase from the April 1, 2010, U.S. Census estimate.
TOWN OF CARY GOVERNMENT The Town has a Council-Manager form of government. The seven- member Council is the legislative body of Town government. Two council members and the mayor are elected at-large, and one council member is elected from each of four voting districts. The Council is responsible for setting overall policy, budget approval and appointing the Town Manager, Town Attorney and Town Clerk. The Town Manager is responsible for implementing Council policies and Town Ordinances, managing daily operations, and appointing department directors.
The Town provides its citizens with a full range of services, including police and fire protection, solid waste and recycling services, the construction and maintenance of streets, curbs, gutters, sidewalks and other infrastructure, recreation and cultural activities, fixed route and demand-response transit service, and water, reclaimed water and sewer service. This Comprehensive Annual Financial Report (CAFR) includes all the Town’s activities in delivering and administering these services.
TRANSFORMATION Careful planning and a proactive approach have been hallmarks of the Town’s culture and are responsible for the attractive character of the Town, adequate public infrastructure, impressive service levels and fiscal prudence. The Imagine Cary Community Plan, adopted January 24, 2017, sets out a long-term vision, policies and strategic actions with a time horizon to 2040. The Imagine Cary Community Plan can be found on the Town’s website at www.townofcary.org .
To implement the Imagine Cary Community Plan, Cary is in the midst of an exciting challenge: creating a model of local government that doesn’t yet exist. Creating next-generation service models based on an adaptive mindset and a new way of thinking will ensure that Cary will stay ahead of the curve on trends affecting the community.
This bold mission is an opportunity for a community that, by all objective measures, is at the top of its game. Cary is defined by exceptional citizen service. The Cary Way, as it has come to be known inside the organization, is defined as, “Working together to change lives by exceptional service.” Cary is consistently ranked one of the safest places to live for a community of its size and is a Google Fiber City. The Town has been recognized as a Gold Medal community for parks, recreation, and cultural resources and has been designated an ISO Class 1 Fire Department.
The techniques that allowed Cary to thrive over the past 30 years will not keep Cary successful over the next 30 years. To illustrate, Cary’s leadership has adopted the concept of an arc. Now, Cary is at the top of that arc. Cary has decided to stay at the top rather than risk the path of decline that characterizes other once-great communities that did not maintain their place at the top.
At the same time Cary enjoys a number of positive attributes, the community also faces distinct challenges: an aging population, aging infrastructure, and limited land for development. These challenges can only be addressed with agile, adaptable, and technology-savvy approaches that support risk-taking and creativity in the pursuit of innovation. Commitment to excellence is a defining characteristic of Cary thanks to a culture of excellence set by the Council and, ultimately, Cary citizens.
The Town must remain true to its values while finding ways to change and grow to allow Cary to stay ahead of the curve, on top of the arc, and to become the local government that does not yet exist.’
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FY 2018 FINANCIAL RESULTS GENERAL FUND
Cary’s strong finances have long been a pivotal tool in the development of a remarkable community. Current year results and resources will contribute to continued success. FY 2018 General Fund operating revenues and expenditures maintained a positive growth trend as shown in the five-year perspective below.
A summary of General Fund results on a budgetary basis compared to the final adjusted budget and FY 2017 actual results reflects a complete picture of the FY 2018 outcome. Traditional growth factors such as new development and a growing economy account for the increases in FY 2018 General Fund revenues. Similarly, increases in expenditures reflect expanded and enhanced programs.
The final FY 2018 budget authorized $30.1 million of investment from the General Fund’s fund balance primarily to provide resources for capital projects. The positive operating results caused fund balance to decrease only $12.9 million. As in the past, revenues exceeded budget, and expenditures came in under budget for a net positive budget variance of $17.8 million or 10.7%. Other financing activities accounted for a budget variance of $.6 million.
The sources and uses of FY 2018 General Fund operating resources are shown as a percentage of the whole for perspective. Ten year historical comparisons by revenue source are included in the Statistical Section in Table 7.
FY2018 GENERAL FUND FY2017 to
FY2018 FY2018 % of FY2017 FY2018 % Adj. Budget Actual Budget Actual Variance Variance
Revenues 163.0$ 166.7$ 2% 161.7$ 5.0$ 3%
Expenditures General Government 30.4 25.2 (17%) 19.6 5.6 29% Public Safety 50.2 47.4 (6%) 46 1.4 3% Operations 51 47.4 (7%) 45.7 1.7 4% Development & Infrastructure 18.6 16.6 (11%) 16.7 (0.1) (1%) Debt Service 16.5 16 (3%) 13.5 2.5 19% Total Expenditures 166.7 152.6 (8%) 141.5 11.1 8%
Revenues Over (Under) Expenditures (3.7) 14.1 (481%) 20.2 (6.1) (30%)
Other Financing Sources (Uses) (26.4) (27.0) 2% (21.6) (5.4) 25%
Appropriation from Fund Balance 30.1 -- (100%) -- --
Revenues & Other Sources Under Expenditures & Other Uses -- (12.9) (1.4) (11.5) 821%
Fund Balance - Beginning of Year 101.3 102.7
Fund Balance - End of Year 88.4$ 101.3$
$-
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$180
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
General Fund Revenues and Expenses (in Millions)
Revenues Expenses
FY 2018 GENERAL FUND
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Ten year historical comparisons by expenditure function are included in the Statistical Section in Table 5.
The Town’s financial planning ensures that an adequate unreserved fund balance is available to ensure consistent cash flow, generate interest income, and eliminate the need for short term borrowings. Additionally, it provides flexibility for unanticipated opportunities and needs during emergencies. As of June 30, 2018, there was $18.8 million in the General Fund’s fund balance above the Town’s minimum policy of 40% (approximately five months) of the expenditures. In the FY 2019 budget, $5.1 million was appropriated for capital investment.
UTILITY FUND
Utility operations exceeded budget expectations by $7.3 million. Utility revenues increased following a three percent rate increase and modest increases in consumption. The FY 2018 financial plan for the utility included a $33.1 million net contribution from operations to capital projects. This purposeful undertaking helped avoid additional debt and limited utility rate increases. Given the positive FY 2018 results, operating equity decreased only $25.8 million and has capacity to support additional capital needs in the future. The Utility Fund operating margin has grown primarily through rate increases designed to finance a larger component of the utility’s capital maintenance requirements.
Public Safety 31%
Public Works 20%
General Government 17%
Parks, Recreation and Culture
11%
Debt Service 10%
Development 6%
Infrastructure 5%
Where Does the Money Go?
$-
$10
$20
$30
$40
$50
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$90
FY 2014 FY 2015 FY 2016 FY 2017 FY 2018
Utility Fund Revenues and Expenses (in Millions)
Revenues Expenses
Ad Valorem Taxes 55%
Other Taxes and Licenses 22%
Sales and Services 11%
Unrestricted Intergovernmental 7%
Permits and Fees 3%
Miscellaneous 1%
Restricted Governmental 1%
Investment Earnings 0%
Where Does the Money Come From?
Ad Valorem Taxes 55%
Other Taxes and Licenses
22%
Sales and Services 11%
Unrestricted Intergovernmental
7% Permits and Fees
3% Miscellaneous
1%Restricted Governmental 1%
Investment Earnings 0%
Where Does the Money Come From?
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In the Statistical Section Tables 6 and 8 provide ten-year historical Utility Enterprise Fund comparisons of operating and capital revenues and expenditures.
Cary invested over $81 million in capital planning and infrastructure in FY 2018 for streets, parks, fire, general government, downtown and utility purposes.
An in-depth analysis of the financial position and FY 2018 activities is included in Management’s Discussion and Analysis (MD&A), a component of the Town’s basic financial statements. The format and content of MD&A is prescribed by governmental accounting standards and is highly technical. Some information in this overview is also discussed in MD&A.
The CAFR contains many more insights into Cary’s operations, values and trends than basic financial statements. One section of the report contains statistical data and 10 year trends. These details provide context and history about Cary’s financial position and direction. For example, Cary’s tax base has increased 34% in 10 years to $26.4 billion. Table 12 in the Statistical Section lists Cary’s top 15 taxpayers in FY 2018. The list demonstrates strength in the diversity of the Cary tax base. Because the top 15 taxpayers constitute less than seven percent of the total base of taxpayers, the financial distress of any one taxpayer would not impair the stability of Cary’s tax revenues.
Similar to the largest taxpayers, Table 29 in the Statistical Section lists the largest utility consumers. The top 10 FY 2018 utility ratepayers account for less than eight percent of the utility retail revenues. More notable is the fact that only five of the top 10 are industrial and office uses that generate less than four percent of the utility revenue. The remaining five ratepayers represent institutional and stable uses for schools, hospital, airport and multifamily residential. This positive characteristic of the utility provides confidence that the consumer base is diverse, and the reduction in demand of any one consumer would not impair the financial position of the utility.
ECONOMIC GROWTH Development and population growth have been the main drivers for Cary’s revenue growth for many years. An analysis of the development process and the volume of activity provides insight to current tax base growth. Development “in the pipeline” demonstrates potential for continued growth in the next few years because the process for developers from concept to permitted occupancy can take three years or more. A more detailed analysis of the development process and the FY 2018 activity is included in the Shape section of this overview. Key indicators from FY 2018 include:
Cary’s population is estimated at 163,930 at year end, an increase of 2.2 percent from June 30, 2017.
Assessed value grew $562 million (2.2%), to $26.4 billion, detailed in Table 9 in the Statistical section of this report.
Chatham County value grew to constitute 2.7% of Cary’s total compared to 2.2% in FY 2017. See Table 9.
Construction permit value, less certain other permit values, in FY 2018 was $662.6 million, a 27% increase over FY 2017. That was the second highest annual value in the past 10 years. See Table 24.
Other economic factors affect the Town’s revenue directly or indirectly, including the state and national economies.
The local economy improved in FY 2018, and Cary experienced a 4.8% increase in sales tax revenue compared to FY 2017.
Cary’s unemployment rate, historically less than the county, state and national average, fell to 3.2% in June 2018. See Table 22 and the discussion of local employers in the Work section of this report.
The Town continued to bring in visitors for amateur and professional sports. The quality of Town facilities and service draw NCAA, ACC, USA Baseball and USTA events at its soccer, baseball and tennis venues. NC Football Club and the Carolina Courage, an American professional women’s soccer team, are at home in Cary at the WakeMed Soccer Park. The Town also welcomes the SAS Championship, a golf tournament on the Champions Tour played annually at
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Prestonwood Country Club.
CARY’S FINANCIAL POSITION Cary remains in excellent financial condition. Cary has capital resources, revenue capacity and an expense management culture that will provide Council with choices on how best to fulfill the vision and highest priorities in the Imagine Cary Community Plan. The vision and desire to provide even higher service levels continues upward on an exponential path. Setting priorities for capital investments and the quest for operational efficiencies have become essential discipline.
The core building blocks of AAA rated financial management are in place. Town finances are based on a solid foundation of fund balance, cash reserves, and manageable debt. Well maintained infrastructure and revenue capacity exists in the tax base and in model citizens who are here by choice. These assets provide Cary’s elected officials the resources to protect Cary’s position and to continue to provide quality services.
CASH MANAGEMENT Cary manages the cash resources of all funds in one pool to maximize investment earnings and efficiency. At the end of the year the market value of Cary’s pooled cash and investments for all funds totaled $550.3 million. Investment income is allocated monthly to each fund based on average cash balances.
Throughout the year Cary maintains a minimum of $40 million in bank accounts to ensure that Cary has immediate access to funds. The remainder of the portfolio is invested in securities that ensure the safety of the principal and earn maximum interest income.
Cary’s cash management policy complies with state law, which specifies the types of securities that may be purchased for investment. Permissible investments essentially include only highly rated securities to ensure the preservation of principal. Securities such as treasury obligations of the US government, its agencies and sponsored corporations as well as highly rated corporate and municipal bonds are allowable. Equity or speculative securities are not allowed. Cary’s investments mature in less than five years.
A weekly cash forecasting model and investment plan considers Cary’s balance of investments to ensure cash flow and diversity of securities. This approach results in a laddered portfolio with 660 average days to maturity. The portfolio maturity extends to April 2022 with approximately $3.5 million maturing weekly. In all but the rarest of circumstances, investments are held to maturity. As a result, the Town does not incur any gains or losses due to market price fluctuations that are reported in the financial statements.
This approach prevents Cary’s interest income from decreasing quickly in a falling rate environment. Conversely, in a rising rate environment, Cary’s average investment portfolio yield rises more slowly than market rates. The portfolio investment earnings compare favorably against a benchmark of a simpler cash management approach based on investing routinely into two-year US
Liquid Cash $70.3 13%
Municipal Bonds $10.5
2%
Fixed Income Securities
$369.9 67%
Treasuries $99.6 18%
Cash and Investments by Type (in millions)
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Treasury securities. Cary’s managed approach has consistently outperformed the benchmark by 10 to 20 basis points. Measured conservatively on a $400 million portfolio, 10 basis points provides an additional $400,000 in investment income for Cary.
The Federal Reserve increased federal funds interest rates twice during FY 2018. These rate hikes impacted market interest rates, and the average rate on Cary’s investment portfolio increased from 1.03% for FY 2017 to 1.31%. Moreover, the rate hikes impacted the Town’s earnings on cash accounts.
Cary uses an independent financial advisor to project cash flow and to monitor and report quarterly on portfolio management. These financial advisors also support Cary’s debt management program.
More details about Cary’s deposits and investments are included in Note 2 to
the financial statements.
DEBT MANAGEMENT Cary’s long-term obligations are explained in detail in Note 9 to the financial statements. A component of those long-term obligations is in the form of bonds issued to finance capital improvements. In FY 2018 Cary incurred new general obligation debt and refinanced both general obligation bonds and revenue bonds to reduce future interest expense.
GENERAL OBLIGATION BONDS Certain street, parks and fire capital projects were funded with debt authorized by Cary voters in the 2012 referendum. Cary has borrowed against the $80 million voter authorization three times. The third bond sale occurred in September 2017 for $30 million. The competitive bond sale was conducted by the NC State Treasurer’s office on behalf of Cary. The bonds sold in a low interest rate market with strong competition, demonstrated by 14 financial institutions that bid on the bonds. The winning bid was for an average interest rate of 2.5% for 20 years. For comparison, similar 2014 bonds bear an average
interest rate of almost 3%.
At the same time, Cary issued $28.8 million of refunding bonds to refinance existing general obligation bond debt. The transaction reduced future interest expense by approximately $1.4 million that benefits both the utility fund and the general fund over the next 11 years.
The bond rating agencies updated and confirmed Cary’s general obligation bond AAA ratings as part of the bond sale process.
UTILITY REVENUE BOND SALE
Late in calendar year 2017 new federal legislation was proposed to limit a specific type of tax-exempt refinancing bond sale. In anticipation of the legislation’s effective date of December 31, 2017, Cary moved quickly to refinance $92 million of utility revenue bonds. Because Cary bonds are highly rated and relatively rare within the total tax-exempt bond market, the negotiated bond sale resulted in favorable interest rates. Cary locked in $8.6 million of interest savings for the utility over the next 20 years. As part of the sale process, the bond rating agencies updated and confirmed Cary’s AAA revenue bond ratings.
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Staff members at Town Hall watched the bond sale as it progressed.
BONDED DEBT AMORTIZATION Debt payments in the General Fund decline over time because the debt is repaid more aggressively than a traditional mortgage structure. Typically, debt incurred for general capital projects is repaid within 20 years or less and the payments shrink over time because, instead of level debt payments, the payments are structured with level principal commitments. As the debt is repaid, the interest component of the payments shrinks. This repayment structure, which is mandatory under North Carolina statutes for general government projects, creates debt capacity for the priorities of future elected officials. Utility Fund debt is structured with level payments over a longer term, which recognizes the longer life of utility assets and the capacity for future rate increases for utility service.
The Town has additional voter debt authorization of $13.7 million in street bonds, $1.8 million in parks and recreation bonds and $.5 million in fire bonds resulting from a 2012 referendum that remains unissued at June 30, 2018. Of the $16.05 million total in general obligation debt authorized but unissued at June 30, 2018, $3.4 million has been appropriated to capital projects. Future capital projects could be funded with the remaining authorization.
$0
$5
$10
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$25
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19 FY
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23 FY
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25 FY
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27 FY
20 28
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29 FY
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33 FY
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35 FY
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43
FUTURE DEBT SERVICE, in Millions
General Fund Utility Fund
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PENSIONS AND OTHER POST-EMPLOYMENT BENEFITS Because Cary values employees are one of its most important resources, significant dollars (averaging 35%-40% of annual salary per employee) are spent each year on a competitive, comprehensive benefit program.
Cary is a participating employer in the statewide Local Governmental Employees’ Retirement System (LGERS). The defined benefit pension plan is administered by the State of North Carolina. The pension plan is considered one of the top plans in the nation because it is well funded and prepared to meet future obligations to retirees.
Other Post-Employment Benefits (OPEB) are retiree benefits for health insurance. Cary established retiree health insurance benefits to attract and retain experienced employees and recognize the significant value of long- term service. These benefits include health, dental, vision and life insurance coverage to qualified retirees until the retiree reaches the age when they are eligible for Medicare. Upon eligibility for Medicare, Cary provides a Medicare supplemental policy. Cary funds retiree OPEB annual expenditures through the operating budget, and in FY 2018 those expenditures totaled $2.0 million.
New accounting and reporting rules effective for all governments regarding future obligations for OPEB have changed Cary’s financial statements. Cary’s $146.4 million obligation for OPEB constitutes a liability which had previously been reported in the notes to the financial statements. The new rules make the OPEB liability readily apparent on the face of the entity wide statements. Note 12 provides details about the program and obligation. The new reporting requirements did not change the economic financial position of Cary or mandate OPEB funding.
Over the last two fiscal years Cary specifically set aside a total of $2.3 million for its OPEB liability in the Health Insurance Internal Service Fund. Another $1.6 million was set aside in the FY 2019 budget. Additional resources exist in the net position of the Health Insurance Internal Service Fund. A study to examine alternatives to manage current and future liabilities is underway. The study is a
collaborative effort considering both financial and human resources priorities.
Benefits for law enforcement personnel include a separation allowance. Cary has a pension liability of almost $10.9 million for this pension obligation and funds the separation allowance on a pay-as-you-go basis.
More information about these benefits is included in the Required Supplementary Information sub-section of the Financial Section of the CAFR.
RISK MANAGEMENT Cary manages insurable risks through a combination of self- insurance and the purchase of insurance policies. Risk management consultants and a competitively selected insurance broker work with Cary to analyze and establish risk coverage in a cost-effective manner. Cary also uses a third-party actuary to estimate claims incurred but not reported.
Cary self-insures workers compensation coverage and employee health and dental claims up to certain limits for risks beyond those limits, exposure is covered with third party stop-loss policies. Cary also self-insures small claims
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and losses under the deductible limits of property and liability coverage.
Cary’s approximately $20 million health insurance program is accounted for in an internal service fund. Schedules 16, 17 and 19 in the Internal Service Fund sub-section to the Financial Section of this report provide more details about annual activities.
Note 11 to the financial statements provides details about the self- insured claims, and Table 28 provides details on property and liability insurance in force during FY 2018.
CAPITAL INVESTMENTS Each year the town adopts a capital improvement budget and prepares a 10- year capital improvement plan. Annually, newly budgeted projects are added to the inventory of work and completed projects are placed into service. In FY 2018 the Town continued to manage approximately 400 capital projects. As the Town’s infrastructure ages, a greater percentage of capital projects are for maintenance and rehabilitation.
Cary’s financial commitment to capital planning and construction is notable. In FY 2018 total capital spending was over $81 million, an average of over $1.5 million invested in infrastructure planning and construction every week. Street, water and parks projects comprised almost 80 percent of total spending. The total budget for active projects in FY 2018 was over $700 million.
During FY 2018 project spending facilitated the following accomplishments:
Four newly constructed lanes of Green Level West Road from Glenmore Road / Capistrane Drive to NC-540 opened to traffic
43 miles of Cary-maintained streets were improved including 16 miles of milling and resurfacing; 62 street segments patched totaling seven miles; and 20 miles of street rejuvenation
Design and permitting work continued on Fire Station #9
Construction continued on a 42-inch third pipeline to provide raw water transmission capacity and redundancy
Wake County broke ground on construction of the new downtown Cary regional library. The Town funded parking deck located on this site will be constructed as part of the larger project.
Streets $25.7
Water $24.3
Parks $12.3
Sewer $7.5 Downtown
$5.2
General Govt $4.9
Fire $1.1
FY 2018 CAPITAL SPENDING, in millions
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Fire Station 9 Design
FINANCIAL SYSTEMS AND BUDGETARY CONTROL The Cary Town Council is required to adopt a balanced budget by July 1 of each year. The Town is empowered to levy a property tax on both real and personal property to fund general government activities. Water, sewer and reclaimed water rates are also levied to fund the utility enterprise system.
Most General Fund revenues are collected by other government agencies and remitted to Cary. Wake County and Chatham County bill and collect property taxes with notable success. Cary received 99.9% of the levied real property taxes in FY 2018. The NC Division of Motor Vehicles collects vehicle property taxes and license fees. The State of North Carolina collects and remits sales taxes. Cary manages revenue collection systems for fee-based services such as parks and development services. Solid waste fees are collected in concert with monthly utility billing.
Utility Fund revenues are collected by staff through the preparation and delivery of approximately 62,000 monthly bills for utility service to users in both Cary and Morrisville. The economic demographics of the user base are strong, and
Cary provides ratepayers with multiple ways to pay their utility bills. Almost 100% of active Cary utility ratepayers meet their obligations on a timely basis.
The Town’s budget ordinance creates a legal limit on spending authorizations and serves as the foundation for Cary’s financial planning and control. The budget is prepared by fund and function, Examples include the General Fund and Public Safety. The Town Manager is authorized by the budget ordinance to make certain limited transfers within funds to facilitate budget execution consistent with Council intent.
To manage hundreds of thousands of individual financial transactions Cary maintains a system of internal controls. Leadership from Council and management has established an effective internal control environment with clear and consistent expectations for ethical, prudent and transparent financial management and operations.
FINANCIAL REPORTING In FY 2018 Cary’s quarterly reports were strengthened with the addition of interim financial results and analysis. The reports are available at www. townofcary.org. The financial results were also presented at new quarterly meetings with Council.
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Carolina, the retailers are already collecting and remitting sales tax. The NC Department of Revenue (DOR) reported an intent to collect sales taxes on most other internet retail sales beginning November 2018. DOR estimates an annual state revenue increase of $75 million, and a corresponding local increase of $35 million, annually. Given that the local annual increase of $35 million would be spread to units across the state, the impact on Cary will be minimal.
Investment earnings are expected to increase for all funds. The Federal Reserve raised the federal funds rate three times in calendar year 2018 from 1.50% to 2.25%. Most economists anticipate another rate hike in December 2018. Rate increases benefit Cary’s interest income earning potential on the $500 million investment portfolio, increase the interest expense on approximately $29.3 million of Cary’s variable rate debt and increase interest rates on future debt financing.
The FY 2019 capital budget relies on additional debt. Cary plans to borrow approximately $8.6 million in the fall of 2018 to finance a large portion of the construction of Fire Station #9 as well as a portion of the cost of two replacement aerial ladder trucks. The new Fire Station will be pledged as collateral for a competitively bid installment loan from a single financial institution. The debt will be repaid over 15-20 years, not to exceed the life of the respective new assets.
The FY 2019 budget document reflects a fresh perspective with modern formatting, style and generous use of pictures, charts and graphics. It represents a first step in creating a budget that integrates the Imagine Cary Community Plan, while conveying information in an inviting and easily-consumable format. The FY 2019 Annual Operating Budget and the Capital Improvements Budget/ Plan can be found on the Town’s website at www.townofcary.org.
LONG TERM FINANCIAL PLANNING To ensure Cary maintains its AAA rating and remains in a strong financial position, Cary began work in FY 2018 to develop a financial forecasting model that projects the general fund financial position for five years. The model can
LOOKING AHEAD: FY 2019 BUDGET AND ECONOMIC CONDITIONS On June 28, 2018, the Cary Town Council approved a $347 million budget for FY 2019. The budget allocates $252 million for operations and $95 million for capital projects. Highlights include:
12 new firefighters to staff a ladder truck for western Cary;
An additional $8.7 million for the Carpenter Fire Station Road widening;
$7.1 million for street improvements;
$2.7 million for stormwater assistance and drainage improvements;
$500,000 for continued downtown revitalization
$215,000 to renovate portions of two community centers.
An increased focus on employee training and the implementation of new technology to improve organizational efficiency and drive engagement are also included.
Cary’s property tax rate remained unchanged at 35 cents per $100 of real property value. However, to improve streets and sidewalks, the vehicle license fee increased from $15 to $30. And to move toward full cost recovery, the monthly solid waste fee increased a dollar – from $16 to $17 per month for residential service. Utility rates also increased three percent for a typical household.
Council adopted the FY 2019 budget based on growth patterns like 2018, with slightly increasing sales tax revenues. Subsequent to budget adoption, the North Carolina League of Municipalities (NCLM) published a quarterly revenue report that focuses on statewide revenues affecting municipalities. The September report states that “North Carolina’s economic outlook continues to be positive, though with some signs of slowing.” Multiple factors impact the outlook, but one key factor was strong job growth in the first six months of 2018.
In June 2018 the Supreme Court ruled that local sales taxes could be imposed on internet retailers in states where they have no physical presence. Because most of the top e-commerce retailers have a physical presence in North
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demonstrate the financial impact of significant development, tax rate increases and/or capital investments and incorporates inflation indicators by expense category. Reports illustrate Cary’s actual and projected fund balance and debt capacity compared to Council policies to ensure that Cary remains in compliance with these important financial indicators.
Cary’s utility rate strategy is informed by a 10-year utility rate model. The model processes projections on consumption, other revenues and expenditures. Over the past two years the model has been adjusted to reflect decreasing per capita demand based on Cary’s experience and national trends. Industry experts attribute changing demand patterns to water efficient home appliances and environmental awareness. In Cary, price elasticity may also be a factor as well as heightened awareness due to the availability of hourly usage data through Aquastar. Reports from the model include a sophisticated dashboard of strategic indicators that are used by staff to recommend rates that meet or exceed Cary’s policies for day’s cash on hand and debt service coverage ratios.
Plans are in place to enhance long term financial planning for financial sustainability and capital investments. Annually, Cary updates the 10-year capital plan as part of the budget process. In FY 2019, the capital plan will be reviewed and reconsidered in detail to ensure that the plan matches the Imagine Cary Community Plan and priorities outlined in Cary’s Buried Infrastructure Asset Management Plan and master plans for transportation, parks, water, sewer and stormwater.
SERVICES AND PROJECT ACCOMPLISHMENTS Town resources fund operations, capital investments and other initiatives to serve citizens. Citizen satisfaction with the Town has been gauged every other year since 1998 by a consultant in a scientifically valid citizen survey. In FY 2018 approximately 400 Cary residents were asked to state their opinions on how well their government works for them. Specific topics were addressed including housing, safety, quality of life, service, flooding, communications, street repair, the environment, and recreation facilities. The executive summary of the consultant’s report begins with a summary statement that the results were “exceptionally positive” and goes on to conclude “This year’s ratings represent the best results the Town has earned, exceeding the previous “gold standard” of the year 2012.” The Cary Fire Department continued to earn the highest marks with A+ ratings for response time, competence, courteous, fairness and problem solving. The executive summary as well as the entire survey can be found on the Town’s website at www.townofcary.org
Key events and accomplishments are highlighted in the following eight sections, which are organized to match the structure of Cary’s guiding vision set out in the Imagine Cary Community Plan; Live, Work, Shop, Engage, Shape, Move, Serve and Act.
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WORK: ASSURING CONTINUED PROSPERITY Cary was long considered successful as a bedroom community to Research Triangle Park (RTP), and the cities of Raleigh and Durham. As part of the development of the Imagine Cary Community Plan, data analysis confirmed that Cary had grown into an employment center of its own. Business days result in a net migration of citizens into Cary for work.
A highly educated workforce and a competitive cost of doing business have drawn major employers. Cary is extremely fortunate to be the home of SAS Institute, the world’s largest privately held software company. SAS Institute, Inc. has been recognized as one of the best places to work by Fortune Magazine for more than 20 years, and has provided stable, growing employment since its inception.
Other major employers within the town limits include Met Life, Verizon Business, Epic Games, Kellogg’s Snacks, Fidelity Investments, John Deere Company, Siemen’s Medical Solutions USA, HCL Technologies, ABB, Inc, American Airlines Reservations Center, and DB Global Technologies.
Notable employment news in FY 2018 included:
Trilliant, a global leader in smart grid technology, announced they were relocating their HQ from Silicon Valley to Cary.
MetLife broke ground on MetLife3 to make a place for 500 additional jobs.
Verdesian Life Sciences created 35 new jobs. Verdesian helps farmers do more with less in the cutting-edge field of ‘nutrient use efficiency’
SAS Institute opened a new fraud and security intelligence division with 70
new employees.
The Cary unemployment rate has historically been extremely low and consistently lower than state and national averages. In June 2018, Cary’s unemployment rate was 3.2%.
Beyond Cary’s borders, citizens benefit from the employment base in RTP where there are approximately 50,000 jobs in high-technology fields at over 200 companies. Throughout the triangle region, state government, healthcare and three major universities round out a diverse group of employers in the region that has historically been stable and less sensitive to economic downturns. The employment community is repeatedly recognized in studies, rankings and accolades.
A comparison of Cary’s principal employers in FY 2018 and its principal employers 10 years ago in FY 2009 are listed in Table 23 in the Statistical section. SAS Institute, Inc, remains the number one employer providing over six percent of the jobs in Cary.
Cary’s own employees benefit from a positive environment that fosters their growth and job satisfaction. Cary’s Statement of Values, listed along with the Mission Statement, recognizes that employees are our most important resource. Cary’s Human Resource Department delivers a competitive, comprehensive benefits program to serve the needs of employees and their families.
NEW EMPLOYEE TRAINING ACADEMY
The Town kicked off a refreshed training program, maintaining Cary’s commitment to employee development by utilizing trainers and skills from across the organization and broadening content. Classes include topics such as public speaking, technology use, and emotional and social intelligence. Subjects also include introverts and extroverts in the workplace, women’s safety, personal budgeting, and supervisory training. Academy Shorts, a new sharing and learning concept, features one-hour opportunities for interested Town employees to share tips and skills on specific topics such as time management, organizational skills, and managing multiple priorities.
CARY
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Since 2003, citizens have been enjoying a hands-on look at Cary’s operations behind-the-scenes through the School of Government program. OneCary classes make this content available to all employees by offering a look at the people, equipment, and facilities providing services to citizens. Employees also have access to training on the main concepts of Town’s organizational renaissance. Employees completing all OneCary classes earn recognition for their dedication to a well-rounded understanding of the Town.
EMPLOYEE RECOGNITION RECEPTION AND LUNCHEON
Cary manages a number of recognition programs, but the largest is the Town’s annual Employee Recognition Reception and Employee Luncheon. Respecting the “OneCary” effort, employees from all parts of the organization contributed time and expertise to develop various aspects of new and exciting programs in FY 2018.
In November, over 300 employees gathered in the Cary Arts Center to celebrate 11 Employee of the Year nominees and 186 service award recipients. Also recognized were employees who were celebrating 5, 10, 15, 20, 25, and 30 years with the Town. Employees appreciated the chance to socialize and congratulate their coworkers.
In December, Cary’s Mayor, Town Council members and retiree guests joined nearly 700 employees to celebrate and honor the work of staff at the annual Employee Luncheon.
SHOP: CREATING VIBRANT DESTINATIONS SMALL BUSINESS SATURDAY PROCLAMATION
The Town of Cary has officially recognized Small Business Saturday with a proclamation for the past four years. Small Business Saturday is an initiative to encourage shopping locally in small businesses on the Saturday following Black Friday. The national promotion has been successful in bringing both awareness and increased sales to small businesses across the country. Council members presented the official Small Business Saturday Proclamation as part of the Cary Chamber 2017 Business Expo.
WEGMANS
In FY 2018 construction permits were issued for Twin Lakes Shopping Center, a 158,300 square foot commercial shopping center that includes the Cary’s first highly anticipated Wegmans grocery store. A second Wegmans is planned in the Fenton development on the Town’s eastern border.
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ENGAGE: EXPERIENCING THE CARY COMMUNITY BUILDING BRIDGES
In August 2014 an officer-involved shooting took place in Ferguson, Missouri. Over time incredible unrest developed throughout the country, specifically concerning the relationship of law enforcement and communities of color. While Cary did not see problems on this level, the incident did create conversation in the black community about the uncertainty. It was that uncertainty that drove a Cary resident, Tru Pettigrew, to the Cary Police Department. This key step was the beginning of a relationship and a partnership that would last.
Through the ensuing years, Tru and the members of the Cary Police Department have worked with diligence and persistence to ensure there is a relationship between communities of color and Cary police officers. Based on the premise that consistency builds familiarity and familiarity builds trust, opportunities were created through forums, classes, church visits and cookouts, to build and maintain close relationships. The most impactful of these efforts has been the Barbershop Rap Sessions.
Members of the police department and the black community began having regular conversations on the first Saturday morning of every month. These relationships grew in trust and familiarity and although these community members learned to trust Cary officers their trust only extended to the Town limits. To address this perception, police chiefs and police officers from other towns were invited to the discussions to help community members throughout our entire region. Police Chiefs and officers from Apex, Fuquay-Varina Morrisville, Holly Springs, Raleigh, and Knightdale, as well as Wake County
Sheriff Donnie Harrison, have all attended the Barbershop Rap Sessions, and many have taken the concept back to barbershops in their towns.
In October 2017 Tru and the police chiefs from Cary, Apex and Raleigh attended the International Association of Chiefs of Police conference. This conference, which includes nearly 17,000 police chiefs and police executives from around the world, is the largest, most well attended conference for law enforcement professionals in the world. Together, Tru and our local police chiefs presented a workshop titled, “Barbershop Rap Sessions: Are They the Key to Community Engagement”. In addition, the Commission on Accreditation for Law Enforcement funded a video that featured four of the area’s local barbers talking about how transformative the Barbershop Rap Sessions had been in their shops and communities.
Just before the session began, the group learned that the Chief of Police from Ferguson was part of the assembled crowd. The workshop was successful, and afterwards, the Chief of Police from Ferguson sought advice on bringing the program to Ferguson. Since the concerns following riots in Ferguson drove Tru through the doors of the Cary Police Department the connection was incredibly meaningful and has shaped the world beyond Town limits.
BARBERSHOP RAP SESSIONS’ INFLUENCE GROWS
Based on the success of Barbershop Rap Sessions, Cary spun off two similar
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initiatives, Town Rap Sessions and the STARTERS Program. Like the Barbershop Rap Sessions, these two platforms promote open dialogue and foster greater understanding of others’ perspectives.
In January, rap sessions for staff started at Town Hall to provide employees a forum to discuss race relations and other sensitive issues such as generational differences, the #MeToo movement and managing change. In addition, the Cary Police Department kicked off its Students That Are Restoring Trust, Empathy, Respect, and Support, or STARTERS program. This youth-focused mentoring program was initiated by high school resource officers and students to provide a discussion forum that is mediated and moderated by students. This program tackles issues that are important to today’s youth and tomorrow’s leaders.
CARY YOUTH LEADERSHIP TOWN HALL VISIT
In March, the Town welcomed 43 high school juniors participating in a Cary Chamber of Commerce Youth Leadership program. Established in 1998, Youth Leadership Cary develops the potential of future leaders. The program helps students understand how government, business and individual leaders work together as integral community members.
CARY TENNIS PARK – ATLANTIC TIRE CHAMPIONSHIPS
The Cary Tennis Park hosted the Atlantic Tire Championships, an ATP professional tennis tournament, September 11-17, 2017. The event featured 19 participants directly from the US Open Tennis Championships in New York and brought in players from 13 countries. This created the strongest field to date with the top two seeds ranked within the top 100 tennis players in the world. The event attracted approximately 5,000 spectators, the highest attendance in the three-year history of the event. Kevin King, the winner of the 2017 Atlantic Tire Championships, is a product of the strong program at the Cary Tennis Park, where he trained between the ages of 13-17.
ENVIRONMENTAL OUTREACH
To commemorate the 9-11 Day of Service, Spruce events spanned the course of two weeks. Volunteers worked with our fire fighters to “spruce up” 20 vegetable beds at five fire stations town-wide.
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CHINESE LANTERN FESTIVAL
The third annual Chinese Lantern Festival at Booth Amphitheatre was a success with over 84,000 attending.
CARY APPROVED TO BECOME CERTIFIED LOCAL GOVERNMENT
Cary earned a designation as a Certified Local Government (CLG) under the National Park Service’s Federal Preservation Program from the NC Department of Cultural Resources’ (NCDCR) Historic Preservation Office. This certification establishes a partnership between three levels of government (federal, state and local) for the identification, evaluation and protection of historic and archaeological resources. North Carolina’s CLGs receive expert technical historic preservation assistance from the National Park Service, the State Historic Preservation Office, and from other North Carolina CLGs. In addition, CLGs can apply for historic preservation grants available only to CLGs. To become a CLG Cary demonstrated to the State Historic Preservation Office that it has built a sound, local preservation program meeting federal and state laws and standards and established a professionally-qualified historic preservation commission. Close to 2,000 local governments participate in the CLG program across the country. In North Carolina, 51 local governments, including Cary, have been designated as a CLG.
PARK RENAMING FOR KAY STRUFFOLINO
In November 2017, Council renamed Meeting Place Park after Kay Struffolino, a citizen who has dedicated over 40 years of her life to the improvement of Cary. This park, near downtown, features the Meeting Place sculpture and received some finishing touches to go with its new name such as sculpture lighting, additional landscaping, and updated signage.
SHARE & CARE
Share & Care, an event now in its fourth year, provides a resource fair for persons with disabilities, their caregivers, families and friends by hosting almost 50 organizations and businesses. Agencies offering programs, services and resource information were on hand in February to network with over 200 attendees. This program has grown each year as the demand for resources for persons with disabilities increased.
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DOWNTOWN CARY PARK
A cross departmental team worked throughout the year to hire a renowned consultant to lead the master planning process for the downtown park. The process was evidence of a new culture in the organization where employees volunteered to contribute to the process with time outside their traditional roles.
WWW.TOWNOFCARY.ORG
Cary’s website continues to evolve to provide information and allow citizens to conduct business 24/7. In FY 2018 a feature was added that allows citizens to initiate new utility service. This enhancement added to the traffic that generated almost five million views in FY 2018.
SHAPE: GUIDING COMMUNITY GROWTH The process for new development is composed of three major stages. Land rezoning creates an entitlement for property. The process can take up to 12 months and is preceded by a pre-application process with staff to evaluate how a rezoning proposal fits within the Imagine Cary Community Plan. Development plan review is another year long iterative process that, on average, completes five staff review cycles. Next, developers obtain permits to initiate construction that must be completed within five years, including inspections.
At the end of FY 2018, there were 30 cases in the rezoning process. During FY 2018, the Town approved 92 nonresidential development plans. These plans can range from a development as small as three townhomes to a large mixed-use proposal.
Single-family permits are key indicators of
economic activity in Cary. In FY 2018, the Town issued 1,128 single family permits, the highest number since FY 2014, and 4% greater than the five-year average of 1,087. Of the 1,128 single-family permits issued in FY 2018, 382 (34%) were attached/ townhomes.
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Multi-family permits are measured by individual units rather than the number of buildings and vary across years as a reflection of apartment occupancy rates. In FY 2018, 366 multifamily units were permitted which is down 17% from the five-year average of 439.
Non-residential development is measured by square footage, and for FY 2018, totaled almost 1.9 million square feet. The permit for the third MetLife office and parking structure was a significant project and impacted the outcome, which was up 39% from the five-year average of almost 1.3 million.
Permits for additions and alterations also contribute to growth in the Town’s tax base. Permitted construction in FY 2018 totaled $662 million in value as reported by contractors at permit application. Quarterly reports, available at
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www.townofcary.org include more details about specific projects throughout the year. Table 24 in the Statistical section of this report includes 10 years of history for building permit counts and values.
Cary is empowered by state statute to extend its corporate limits by annexation. Just over 113 acres became part of the Town of Cary through 11 voluntary annexations in FY 2018, resulting in an increase of $12.7 million to the tax base. These annexations are typically a step in the development process during the development plan review phase.
ELECTRONIC PLAN REVIEW FOR BUILDING PERMITS GOES LIVE
In FY 2018, Cary implemented electronic plan review for building permits. Electronic plan review saves design professionals, contractors and citizens printing costs for plans and reduces travel to Town Hall since plans can be submitted remotely, 24/7. In addition, the program improves staff efficiency during the review process and allows staff to access approved plans electronically from the field. This initiative has received overwhelmingly positive feedback from everyone involved.
TOTAL INSPECTIONS
Once permits are issued and construction begins, the inspection process begins. Inspections in FY 2018 totaled just over 77,200, which is up just slightly from the five-year average of approximately 76,049. The chart below demonstrates the cyclical nature of inspection activity. Variances in the volume of work reflect the impact of outdoor temperatures and weather on construction.
EASTERN CARY GATEWAY
The Eastern Cary Gateway is an 800-acre special planning area located on the Town’s eastern border, adjacent to Raleigh along the interstate 40 corridor. Nearly one third of the area is undeveloped. The Town has focused on the area to ensure that new development and redevelopment fulfill the vision of the Imagine Cary Community Plan. A web page for the Eastern Cary Gateway (http:// bit.ly/EasternCaryGateway) was created in FY 2018 to provide a consolidated point of information about development activity.
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Eastern Cary Gateway Strategy Team
A multi-departmental Strategy Team is in place to discuss, plan, and ultimately implement a strategy that will ensure the success of the Eastern Cary Gateway Special Planning Area vision. Sub-groups have been formed to discuss high level strategies for implementing the vision. These sub-groups include Mobility, Soccer, Development, Relationships, Economic Development, and Town Participation. Staff from across the organization and almost every department as well as Cary Chamber of Commerce staff participate in the sub-group discussions. This team can ultimately be the model for proactively ensuring that Council’s vision of the Special Planning Area becomes reality and a model for other high priority initiatives.
Fenton Rezoning
Progress toward the construction of Fenton, a proposed mixed-use development located in the Eastern Cary Gateway Special Planning Area, was a major focus area for the Town throughout the fiscal year. The Fenton project is an approximately 92-acre site on the north side of Cary Towne Boulevard between I-40 and Adams Elementary School.
The Preliminary Development Plan (PDP) proposes vertically mixed uses designed around an “L-shaped” main street where residential and/or office uses are located on top of ground-floor retail tenants. The PDP provides a variety of pedestrian corridors. A total of eight parking decks are proposed, with many of the buildings wrapping around and screening the decks. Several office buildings and one or more hotels are proposed as part of the project. Six community gathering areas are also integrated into the development to provide both passive and active opportunities for residents and visitors.
LIVE: FOSTERING STRONG NEIGHBORHOODS LAURA DUNCAN ROAD/LAUREL PARK ELEMENTARY
In October 2017, a 10-year-old girl left Laurel Park Elementary School and was crossing the street to go home when she was hit by a car on Laura Duncan Road. Fortunately, she suffered only minor injuries. There was no crosswalk at this location. Laurel Park Elementary School is in Cary; the neighborhood across the street is in Apex town limits. Laura Duncan Road is a state road in Wake County. The Apex Police Department handled the law enforcement response, and the Cary Fire Department assisted as medical first responders. Following this near tragedy, citizens requested increased enforcement efforts and a crosswalk.
When Apex and Cary were looking at safety improvements in the aftermath of this incident, it became clear that neither jurisdiction had authority to do so. To ensure that jurisdictional authority is clear and to protect the safety of the public in the future, Cary supported an Apex legislative request to annex this section of roadway because Apex owns utilities within the right of way. The General Assembly approved legislation to make the annexation effective on
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June 30.
STORMWATER
The Town initiated an adaptive stormwater management pilot program downtown in the Walnut Creek Basin, located east of Academy Street in the downtown Maynard Road. Future development of the Downtown Park and redevelopment opportunities throughout downtown, acted as a catalyst in choosing this location to initiate the pilot. The results and findings of this program will serve as a template for managing stormwater throughout Town.
Based on the outcome of the 2018 Council/Staff retreat, an Adaptive Stormwater Steering Committee was formed including five strategic work groups to focus on:
Downtown Stormwater Citizen Working Group
Basin Model Pilot Development
Stormwater Ordinance Revisions
Stormwater Infrastructure Maintenance Program
Open Space Preservation
The Stormwater Steering Committee strives to achieve a 360-degree view of stormwater in Cary by drawing on expertise from a multi-departmental group of staff. To break the traditional autonomous program development mold, the Town added value by incorporating the perspectives of our Downtown Stormwater Citizen Working Group.
BASIN MODEL PILOT DEVELOPMENT
This year, the Town developed and began using the EPA Stormwater Management Model to predict stormwater runoff produced in the downtown area of the Walnut Creek Basin. This dynamic, computerized stormwater model provides an assessment of how rainfall runoff impacts both the public and private stormwater conveyance system. This model identifies current system performance, highlights underperforming infrastructure, and quantifies potential impacts from future development.
DOWNTOWN STORMWATER CITIZEN GROUP
The Downtown Stormwater Citizen Working Group consists of nine citizens with stormwater expertise and personal experience with flooding. Their heightened, proactive approach examines stormwater from a broader perspective than the traditional municipal approach. With a new perspective, the team looks beyond the public right-of-way and explores stormwater from a holistic, watershed perspective.
STORMWATER INFRASTRUCTURE MAINTENANCE PROGRAM
In FY 2016, the Town began developing a Stormwater Asset Management Program along with other Town owned buried assets: water, sewer and reclaimed water. Though stormwater infrastructure is very similar to these other systems, it has distinctive factors that warrant a uniquely tailored approach to manage the life span of the system. This GIS based program is used to help transition our stormwater maintenance program from a reactive to a more proactive program. The goal of this systematic approach is to find problems and address
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them with maintenance before the issues disrupt the lives of citizens and the traveling public.
To further advance the maintenance program, the Town deployed a crew to clear stormwater pipes in the Downtown Pilot Area. This was possible without adding resources in our Public Works Department due to efficiencies created using innovative technology. In March, staff began collecting data for the Stormwater Condition Assessment tool while also clearing pipes so that the stormwater system works better. Public Works quickly identified a buried outlet and followed up to clear two catch basins and the associated pipe segments full of sediment along the streambanks of Walnut Creek. By investigating stormwater pipes upstream of the Town right-of-way, damage from stormwater in the right of way was prevented.
OPEN SPACE
The Open Space Group is identifying and documenting existing data sets and GIS layers for open space opportunities, while also reviewing the Town’s policies to coordinate stormwater initiatives. The staff team expanded to include citizens and the Town’s Environmental Advisory Board to holistically integrate shared goals relative to open space, tree canopy and stormwater management.
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ORDINANCE
The Ordinance Group is evaluating existing stormwater-related ordinances and polices to determine if or how these inhibit or support the Town’s adaptive approach to stormwater. The group has identified opportunities including the level and extent of service, private drainage assistance, the incorporation of green infrastructure and how the Town manages exempt subdivisions.
ACCOLADES
Cary continues to receive accolades from multiple organizations that reflect the desirability of the community as a place to live and work.
#6 Best Place to Live in America, Cary, HomeSnacks (January 7, 2018)
#25 City Where Millennials Are Buying Homes, Cary, SmartAsset (January 25, 2018)
#5 Safest City in North Carolina, Cary, HomeSnacks (January 15, 2018)
Umstead Ranked #1 Hotel in North Carolina, Cary, U.S. News & World Report (February 8, 2018)
#7 Best Place to Live in the USA, Raleigh-Cary MSA, U.S. News & World Report (February 26, 2018)
#4 Safest City in North Carolina, Cary, National Council for Home Safety and Security (March 7, 2018)
MOVE: PROVIDING TRANSPORTATION CHOICES LOCOMOTIVE CHRISTENED IN HONOR OF THE TOWN OF CARY
Town Council and staff joined NCDOT Secretary, Jim Trogdon, and First Lady Cooper in August 2017, to christen the Cary-branded locomotive #1871. The locomotive’s number corresponds to the charter date of the municipality after which it is named.
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TRANSPORTATION TECHNOLOGY
The Town implemented the first thermal imaging sensor at an active pedestrian crossing downtown. Upon detection of pedestrians, technology automatically activates a pedestrian crossing in the traffic signal system.
NCDOT selected Cary to implement the first Vehicle to Infrastructure Technology called SPaT, Signal Phasing and Timing. This pilot project technology allows approaching cars to see traffic signal timing on their smartphones. Cary will the first in North Carolina and the fifth in the nation to implement the technology.
GOCARY OPERATIONS
GoCary continues to see an increase in ridership due to service enhancements and expanded operations made possible through Wake Transit funding. The addition of Sunday service, 30-minute frequencies on four routes, and a new half-fare discount for students has contributed to a 13 percent increase in fixed route ridership when compared to the same period last year. Door-to-door ridership has also increased 9 percent for the same period.
The Town added the www.GoCary.org URL has improved marketing and brand recognition making it easier for citizens to access GoCary online features. A Google trip planner widget, better navigation to maps and schedules and a translation feature enhanced service in FY 2018.
WAKE TRANSIT
In November 2016, Wake County voters approved a half-cent sales tax increase dedicated to expanding the public transit network throughout Wake County.
Throughout the year the Town participated in planning for the FY 2019 Wake Transit Work Plan. Groundwork began for key projects such as the Downtown Multimodal Transit Facility Feasibility Study and an Operations and Maintenance Facility for GoCary.
NOTABLE CONSTRUCTION
In FY 2018, the project to widen Green Level West was completed. Four lanes including outside lanes for bicyclists and sidewalk on both sides of the street create a gateway to the Green Level destination center.
Extensive planning and coordination across the organization minimized interruptions to travel during the construction of Cary Parkway and High House Road intersection improvements.
A project to construct the final section of Morrisville Parkway is approximately 20 percent complete at fiscal year-end. This connection between NC Highway 55 and Green Level Church Road will provide a new interchange at NC Interstate 540 that should open in FY 2020.
Two greenway projects comprised the majority of park capital spending. The White Oak Creek Greenway is a 1.8 mile project that connects to the American Tobacco trail. The Crabtree Creek Greenway project will add approximately 1.7 miles to the Cary greenway system.
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NOTABLE TRANSPORTATION PLANNING PROJECTS
Planning for significant future projects occurred throughout the year. The following potential projects were studied for consideration as part of a connected, well planned transportation system:
McCrimmon Parkway
Green Level Church Road
Trinity Road
Piney Plains Road
Carpenter Fire Station Road/CSX Rail Separation
US Highway 64 corridor
SERVE: MEETING COMMUNITY NEEDS ADDRESSING THE OPIOID EPIDEMIC
Staff, along with partners from the private sector, Wake Community Public Health, NC Department of Health and Human Services, The Poe Center for Health Education, and the North Carolina Medical Society Alliance won a Bloomberg Philanthropy grant to address the opioid epidemic.
The grant award supports the use of wastewater analysis to estimate average opioid use in Cary. The objective is to transform public health practice through state-of-the-art analytics in an open-data platform. The platform can create opportunities to integrate datasets and develop predictive analytics. Moreover, it would promote collaboration across regions, increase civic engagement and reduce social stigma.
Since being named a Champion City by the Bloomberg Philanthropies Mayors Challenge program, Cary tested and improved the idea to build a healthier, stronger community. The Town measured, in near real-time, the daily collective concentration of various opioid metabolites in wastewater. This covered distinct areas through a contract with Biobot Analytics for sampling, chemical analysis, and data analysis.
During May and early June, Biobot Analytics conducted “proof of concept” testing. The first round of pilot-sampling began at 10 sample sites located throughout Town. Additionally, several workshops were held with public health, data analytic, and Bloomberg Foundation partners. Innovative discussions addressed how the new dataset will be used to create new, more effective programs combatting the opioid epidemic.
Also, an earnest community conversation about the stigma associated with the misuse of prescription drugs and drug overdoses began. The Fire Department is leading an effort to unmask the extent of the problem in our neighborhoods and offer some easily implemented, highly effective practices for families.
UTILITY PERFORMANCE REPORTING
The Town’s water quality report, also called the Consumer Confidence Report, is released in July every year. The report summarizes thousands of drinking water tests performed and demonstrates that the Town continues to provide high-quality drinking water that meets all state and federal regulatory standards. Then, in August the Town provides citizens and utility consumers an annual review of activities and regulatory compliance within our wastewater treatment facilities and the wastewater collection system. The Town’s water reclamation facilities continue to perform exceptionally well at consistently treating wastewater to high water quality and permit standards. There were no regulatory compliance violations during the reporting period.
In FY 2018, the wastewater plants were recognized for their high performance. The Western Wake Regional Water Reclamation Facility, (WWRWRF), was named an Exceptional Performing Facility by the NC Department of Environmental Quality. The recognition comes from three years of successful operation since
CLASS OF 2040
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opening, achieving high level nutrient removal standards. As a result, the WWRWRF will benefit from reduced monitoring frequencies for select water quality parameters throughout the duration of our operating permit for the facility.
With a longer operating history, the North Cary and South Cary Water Reclamation Facilities are eligible and continue to be recognized as Exceptional Performing Facilities by the NC Department of Environmental Quality since their last permit renewal in 2014. These facilities are among the best performing facilities in the Neuse River Basin. A key indicator of performance, nitrogen removal, protects the environment by reducing nutrients in receiving waters and by recovering the nitrogen for beneficial reuse in the form of biosolids. Both facilities continue to discharge nitrogen concentrations below the Association’s average of 2.79 parts per million (ppm). Both facilities continue to remove nitrogen at exceptional performance levels
SMART CITIES
In March, the Smart Cities Council (SCC) awarded Cary a 2018 Readiness Challenge Grant. As a recipient, Cary received international recognition for smart city efforts, professional services to develop a customized roadmap, and tailored products to accelerate the Town’s smart city initiatives.
In FY 2018, the SCC facilitated Cary’s Smart Cities Readiness Workshop to explore Cary’s overall smart and connected community vision, public-private partnerships, healthy communities, data management infrastructure, and transportation options that integrate new technology. Over 100 municipal officials, department heads, technology innovators, local business leaders, non- profits, university representatives, and community influencers participated.
The project team will continue to develop a roadmap to present existing and planned smart city initiatives in a sharable and collaborative visual format. This living document can be refined as new technology is introduced. It will use the SCC’s framework to map smart city initiatives to Cary’s responsibility areas and to technology and governance enablers to identify intersection and opportunities across initiatives. This framework will be used to inventory
initiative data sources. It will create a mechanism to prioritize future initiatives by establishing a set of smart city project criteria against which initiatives are rated. It will identify targets, actions, teams and timelines for priority initiatives.
Also, in FY 2018, the Town was recognized with awards by both Smart Cities Dive (Rising Star) and Smart Cities Connect & US Ignite (Smart 50 Award). Cary earned the awards for the innovative use of testing ‘smart’ technology by creating a living lab/simulated smart city on Town Hall campus.
Town Hall campus represents a mini-city by utilizing existing facilities and a cost- effective ecosystem for experimenting with next generation Internet of Things (IoT). This program incubates IoT technologies powered by community partners. The group creates an ecosystem to test, develop and showcase solutions on our campus at little to no cost. This allows the Town to test technology before deploying on a larger scale.
The lessons learned, and the goal from the living lab, will be used to build the ultimate citizen connected community. Citizens increasingly expect the same level of service, technology, and communication from their Town government as they expect from the private sector. These initiatives aim to meet the community where they are with the technology they already use in their daily lives. Connectivity encompasses sending traffic data and road closures to Waze, using Alexa to find open gym times, or reporting a missed trash collection.
911 CONSOLIDATION
A project to study a consolidation of 911 services for Cary, Apex and Morrisville progressed throughout the year. Work is on schedule to meet a March 2019 deadline for Cary to add responsibility for the public safety answering point (PSAP) for Apex and Morrisville.
311
A cross-departmental team of staff worked throughout the year to foster the formation of a 311 Center. The Town’s three call centers provide excellent
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service. However, by bringing together representatives from each, as well as staff from other departments within the Town, 311 will uphold the Town’s role as a leader in excellent service using cutting-edge technology as it meets the short- and long-term needs of the community. The centralized 311 system’s advanced analytics will also help the Town identify potential risks and plan for solutions while adapting to changing conditions over time.
SOLID WASTE ROUTE REBALANCING
The Town rerouted solid waste collections to rebalance the existing routes, maintain exemplary service levels, and eliminate the need to hire additional staff. The largest component of the schedule change included adding Monday collection service and discontinuing Friday collections. Communication efforts were extensive and less than one percent of affected households called with questions.
ACT: MOVING FROM VISION TO REALITY BRANDING
The Town is undertaking its first major community branding initiative. This will give citizens advantages in the increasingly competitive regional, national and global marketplaces to secure the best jobs and opportunities for generations to come. Branding for the Town is a recommended action in the Imagine Cary Community Plan to uncover the community’s brand identity and formulate a compelling brand strategy. North Star Destination Strategies, a branding consultant with expertise in government, began work late in the fiscal year.
NEW REPORTS
In FY 2018 significant progress was made on the development of a tool on the Town’s Salesforce platform that will host a complete inventory of the Town’s projects and services. Known as the Catalog of Projects and Services, this comprehensive list will allow Town leaders to set priorities. The catalog will hold multiple data points about each project and service to support decision making and reporting. The Catalog will facilitate a more comprehensive discussion about the relative value of current and future projects and services.
2018 COUNCIL/STAFF RETREAT AND QUARTERLY MEETINGS
During its annual retreat, the Council took an illuminating pause to reflect on accomplishments over the past year and to prepare for the adaptive challenges that lie ahead. This reflection was crucial to understanding where Cary is, and where it wants to go as a community.
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The adoption of the Imagine Cary Community Plan in FY 2017 marked a crucial starting point for Cary to create new and different service models to better serve citizens. The adoption of the community plan was the ultimate pivot point for the community.
Dr. John Nalbandian, professor emeritus at the University of Kansas and former mayor of Lawrence, Kansas, joined the retreat. He led discussions relevant to elected officials and administrative staff including how critical their perspectives are both separately and collectively.
Dr. Nalbandian discussed the idea of creating model citizens. Model citizens are those individuals who understand that their quality of life depends on more than what they can do individually. Model citizens are those who say they want to give something back to their community, which is a metric of a resilient community.
Council also dedicated important planning time and attention at new quarterly meetings. The first meeting in this format was hosted on the SAS campus to provide a professional setting to focus on key projects and new financial and development updates. The new reporting and resulting discussions facilitate and strengthen the process for future decision making for the community.
CARY’S PIT CREW ACTIVATED
The Imagine Cary Project Implementation Team, or PIT Crew, is a multi- departmental team of staff focused on implementation of the Cary Community Plan. The PIT Crew has been meeting over the past year to develop a detailed understanding of the Strategic Initiatives and Actions in the Plan. The Imagine Cary Community Plan articulates Cary’s vision and values and sets a course for Cary to continue to be a premier community offering new opportunities to citizens. Through thoughtful examination of the multiple elements of the plan, staff was able to align multiple focus areas. The four primary focus areas include Economic Development, Land Development, Move/Transportation, and Strong Neighborhoods. These focus areas connect the Strategic Initiatives and Actions of each chapter and were used to organize the PIT Crew into four Focus Teams. The Focus Teams have been working to create an Action Planning Guide. The Action Planning Guide will connect the Plan’s strategic initiatives and actions with projects and services in the Catalog. It will also propose the following information for each Action: status, action overview, lead staff, internal and external partners, Catalog records, groupings and sequence, goals, milestones and performance measures.
The diverse input from each member of the PIT Crew has created a strong environment to collaborate and capitalize on existing opportunities for implementation of Imagine Cary. The Focus Teams will continue to meet and new staff is being added to the Teams to collaborate further on the Action Planning Guide. The collaboration of the PIT Crew will continue to open doors to share resources and identify cross-departmental opportunities for staff to work together to meet the vision of the Imagine Cary Community Plan.
BURIED ASSETS MANAGEMENT PLAN
A cross-departmental team of employees created a Buried Assets Management Plan to serve as a roadmap to protect investments in underground infrastructure including water, wastewater, stormwater and reclaimed water systems. A multi- year task list defines activities and timelines. Initial tasks include improving the quality of GIS and workorder data as well as refining a prioritization structure
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for pipeline rehabilitation and replacement.
FY 2019 BUDGET DECISION MAKING
In preparation for the FY 2019 budget, for the first time, rather than having the priorities set by an executive team, the department directors worked together to develop a balanced General Fund operating budget to recommend to the Town Manager. Teams of directors and capital projects experts also worked on the General Fund and Utility Fund capital budgets to find resources in current projects and to prioritize capital requests. By sharing responsibility for these tasks, each director gained a better understanding and more complete picture of budgetary opportunities and challenges. This exercise emphasized the importance of collaboration to find efficiencies across departmental boundaries through shared expertise and new perspectives. These high functioning self- directed teams worked to create a recommended budget that will provide resources to continue to meet our citizens’ expectations and to focus on tasks designed to build the community envisioned in Imagine Cary.
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MEMBERS OF TOWN COUNCIL
HAROLD WEINBRECHT, JR. 105 Windspring Court
Mayor
JENNIFER ROBINSON 106 Chertsey Court
District A
DON FRANTZ 706 East Cornwall Road
District B
JACK SMITH 104 Cricket Lane
District C
KEN GEORGE 1312 Brookgreen Drive
District D
ED YERHA 108 Seymour Creek Drive
At-Large Mayor Pro Tem
LORI BUSH 107 Doric Court
At-Large
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TOWN OF CARY MISSION STATEMENT AND STATEMENT OF VALUES
MISSION STATEMENT At the Town of Cary we focus every day on enriching the lives of our citizens by creating an exceptional environment and providing exemplary services that enable our community to thrive and prosper.
STATEMENT OF VALUES To achieve our mission, we will uphold the following values:
1. Our organization exists to serve our citizens. We will be open, ensure access, encourage involvement and be accountable to our citizens.
2. Employees are our most important resource. We will attract and retain the best employees possible and invest in their personal and professional growth.
3. We will be honest, ethical and diligent. Our actions will comply with local, state and federal laws.
4. We will treat everyone with dignity, respect and fairness.
5. We will achieve the best results through effective teamwork, strategic partnerships and community participation.
6. We will provide outstanding customer service that is polite, friendly and responsive.
7. We value creative thinking and innovation. We will continue to be nationally recognized for excellence in local government.
8. We value growth that balances desired service levels, economic benefits and continued stability for our community.
9. We are cost conscious. We spend public funds responsibly and effectively to ensure the Town’s short and long term financial strength.
10. We are committed to proactive, comprehensive planning to guide the future of our community.
11. We will preserve and protect our environment. We will be good stewards of our finite natural resources.
Adopted by Town Council August 22, 2006
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APPOINTED AND ADMINSTRATIVE STAFF
SEAN STEGALL Town Manager(1)
MICHAEL BAJOREK Deputy Town Manager
RUSS OVERTON Deputy Town Manager
DANIEL AULT Assistant Town Manager
RENEE POOLE Chief Human Resources
Officer
CHRISTINE SIMPSON Town Attorney(1)
VIRGINIA JOHNSON Town Clerk(1)
KAREN MILLS Chief Financial
Officer/Treasurer(1)
DOUG MCRAINEY Parks, Recreation & Cultural
Resources Director
ALLAN CAIN Fire Chief
SUSAN MORAN Chief of Strategic Communicatons
TONY GODWIN Police Chief
KEN HAWLEY Inspections & Permits Director
ALLAN CAIN Acting Planning Director
NICOLE RAIMUNDO Chief Information Officer
JAMIE REVELS Utilities Director
STEVE BROWN Water Resources Director
SCOTT HECHT Public Works Director
SCOT BERRY Development Services Director
JERRY JENSEN Transportation & Facilities
Director
(1) Appointed by Town Council
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TOWN OF CARY ORGANIZATIONAL CHART
CITIZENS OF CARY
MAYOR AND COUNCIL 7 Members
*TOWN MANAGER’S OFFICE 24.69 Employees
TOWN BOARDS AND COMMISSIONS
*TOWN CLERK’S OFFICE 4 Employees
*TOWN ATTORNEY’S OFFICE 4 Employees
Fire 222 Employees
*Finance 44.53 Employees
Technology Services
31 Employees
Human Resources 14.63 Employees
Police 230.5 Employees
Parks, Recreation & Cultural Resources
81 Employees
Planning 27 Employees
Inspections & Permits
43 Employees
Development Support Services
15 Employees
Transportation & Facilities
48 Employees
Water Resources 42.63 Employees
Public Works 331 Employees
Utilities 107.25 Employees
* The Town Manager, Town Attorney, and Town Clerk are appointed by Town Council.
All department directors are appointed by the Town Manager. In addition, State law requires the Town Council to appoint a treasurer. The Town Council appointed the Chief Financial Officer as Treasurer.
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RESPONSIBILITIES OF TOWN GOVERNMENT BY DEPARTMENT FISCAL YEAR 2018
LEGISLATIVE DEPARTMENT
The Legislative Department includes the Town Council, the Town Clerk Division, and the Legal Division.
The Town Council is comprised of the Mayor and six Council Members and is elected by the registered voters of Cary. Council establishes policies and programs for effective delivery of Town services, approves the annual financial plan, sets the property tax rate and all user fees, and provides all ordinances, rules and regulations for the welfare of the Town. The Council also appoints the Town Attorney, the Town Clerk, and the Town Manager.
Town Clerk Division ensures accessible and responsive government by preparing and keeping minutes and permanent records, providing administrative support to Council, and coordinating the Town’s boards, commissions, committees and task forces. The Office also maintains the Charter, Code, and Land Development Ordinance and oversees the accurate and timely accumulation, preservation, and accessibility of public records. The position of Town Clerk is appointed by and reports directly to the Town Council. The office is also supported by one full- time Deputy Town Clerk.
Legal Division - advises and provides legal services to the Mayor and Council, the Town Manager, and Town departmental staff. The Department serves the municipal corporation that is the Town of Cary and does not provide advice to private citizens. Legal services provided include: drafting and review of ordinances, policies, and procedures; drafting, review, and negotiation of contracts and other legal instruments; representation of Council or staff at open meetings, including quasi-judicial hearings; assistance in the enforcement of Town ordinances; and representation in claims and litigation, by the Department or through appointed or retained outside counsel.
The Legal Department strives to provide exceptional legal service in support
of Council policies and initiatives, including the Imagine Cary Community Plan and other Town priorities. The Department operates in a manner that reflects and supports the Town’s adaptive leadership culture, and that is efficient, effective, and responsive. At all times, the Department exercises independent, professional judgment in the rendering of candid advice.
The Town Attorney, a Senior Assistant Town Attorney, an Assistant Town Attorney, and a Legal Assistant serve in the Legal Department
TOWN MANAGER’S DEPARTMENT
The Town Manager’s Office includes the Town Manager--who serves as the Chief Executive Officer of the organization--along with his Deputy and Assistants as well as Economic Development and Public Information.
The Town Manager is appointed by the Town Council and is responsible for implementing the policies set forth by the Town Council and exercises management responsibility over all operational departments. Through management of the operational departments, the Town Manager’s Office ensures the advancement of the vision, goals, and policies of the Town Council and that all local, state and federal laws and regulations are met.
Only with a sense of purpose and vision, can any organization, either public or private, achieve its full potential, and the responsibility for articulating and ensuring the strategic implementation of Cary’s purpose and vision rests squarely in the Town Manager’s Office. Our job is to reflect on the most pressing issues facing our community and how we adapt our people, our services, our operations, and our approaches to turn potential liabilities into strengths.
The Public Information Office develops and executes a comprehensive communication program consistent with the organization’s mission and goals and is designed to increase citizen awareness and involvement in their local government. Responsibilities include overseeing communications planning, the Town’s government access channel (CARY TV), the monthly newsletter (BUD), web site content (www.townofcary.org), media relations, advertising, new media efforts and research.
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Economic Development Office facilitates business location, relocation, expansion, and retention activities throughout Cary, including downtown. This office works closely with the Cary Chamber of Commerce – the Town’s official economic development partner – as well as state and county economic development councils, departments, bureaus, and associations in the Research Triangle region.
POLICE DEPARTMENT
The Police Department’s mission is to protect life and property through community partnerships and the provision of the highest level of quality professional services. The department accomplishes its mission by focusing on education, prevention, investigation, and enforcement. Major components of the department include Field Operations, Investigations, Support Services, and Professional Standards. Additional services provided include animal control, school resource officers and emergency communications. The Cary Police Department has proven itself a leader among law enforcement agencies. Proactive policing methods and a great relationship throughout the community have allowed the department to continually move forward and help our citizens maintain a high quality of life. Cary’s Police Department has been internationally accredited since 1992 and has been awarded the Gold Standard by the Commission on Accreditation for Law Enforcement Agencies (CALEA).
FIRE DEPARTMENT
The Fire Department continues the Town’s legacy of excellence by responding in an exemplary manner to present-day emergencies while anticipating future challenges. In a One Cary approach to community risk reduction as well as emergency service response, the Fire Department partners with other Cary departments and neighboring fire departments to ensure its fire suppression and prevention efforts stay responsive and progressive.
The fire department is comprised of 234 full-time employees operating out of nine fire stations located strategically throughout the Town. The department has been internationally accredited since 1999 through the Commission on Fire Accreditation International and in 2015 the Town received an ISO rating of 1.
FINANCE DEPARTMENT
The Finance Department administers the financial affairs of the Town. Financial functions are organized in four divisions: Accounting, Financial Strategy, Procurement, and Utility Accounts.
The Accounting Division maintains accounting and financial systems, and provides payroll, accounts payable and accounts receivable services. The division provides regulatory and informational reporting and prepares a Comprehensive Annual Financial Report. Also managed within this group are cash and investments, debt, grants, and risk management. Risk related to worker’s compensation and safety are managed by Human Resources.
The Financial Strategy Division is responsible for the planning, development, execution and evaluation of the operating and capital improvements budgets and the capital improvements plan. Other responsibilities include long-term financial planning, publishing budget documents and managing special projects. Special projects include internal performance measurement/benchmarking, operational analyses, and policy research and recommendations.
The Procurement Division is responsible for ensuring procurement functions are provided to all departments, as per local, state, and federal regulatory requirements, to purchase goods (apparatus, supplies, materials, and equipment), provide solicitation of services, and bid construction or repair work. The division also administers contracts, manages the Town’s warehoused inventory, manage internal couriers, and disposes of surplus property.
The Utility Accounts Division is responsible for utility billing and collection. The division provides customer service, manages the water meter reading system, and bills and collects for utility services. This function is accounted for in the utility fund.
HUMAN RESOURCES DEPARTMENT
The Human Resources Department exists to promote Town of Cary Value Statement #2: “Employees are our most important resource. We will attract and
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retain the best employees possible and invest in their personal and professional growth.” Adaptively, the Human Resources Department works to drive the culture of the organization. As the Town of Cary continues to move forward becoming the local government that doesn’t exist, we must provide an extraordinary work environment for employees that enhances their creativity and contributions while achieving outcomes identified in the Cary Community Plan. Technically, HR oversees a full range of responsibilities including recruitment and selection, competitive pay and benefits, organizational development, employee relations, and safety and training.
TECHNOLOGY SERVICES DEPARTMENT
The TS Department provides and supports communications, information, and technology solutions to enable Town departments to serve our citizens in the manner they have come to expect. These technology solutions include software applications, geographic information services, public safety systems, radio systems, phone systems, voice mail, email, file services, desktop and laptop computers, mobile devices and network infrastructure. The TS Department is focused on building a secure and connected workforce and community through the use of cloud, platform and data management strategies. We will continue our digital transformation journey through fostering a culture of exploring and testing new concepts and technologies while promoting creativity and cross organization collaboration.
PARKS, RECREATION AND CULTURAL RESOURCES DEPARTMENT
The Parks, Recreation and Cultural Resources Department consist of Administration, Community Recreation Programs, Cultural Resources and Sports Venues Divisions, as well as handling a wide variety of day- to-day and long-range functions.
The Administration Division coordinates the work of all the Department’s divisions, which include Sports Venues, Cultural Arts and Community Recreation. In addition, responsibilities include management of 32 public park areas with unique offerings and 79 miles of greenways; environmental outreach; facility planning with the Transportation and Facilities Department; budget,
grant, and contract administration; volunteer management; customer service; sponsorships; policies and procedures; national accreditation; marketing and communications; special services, including specialized recreation and inclusion, community outreach, including Project Phoenix in coordination with the Cary Police Department.
The Community Recreation Division is divided into the following sections: community centers, senior programs (age 55+), environment education, sports, and outdoor recreation. The division delivers a wide range of sports and recreational activities for adults, children, and senior adults including dance, exercise, adventure, trips, confidence building, social interaction, camps, as well as programs in ecology, environmental stewardship, preservation and nature appreciation. The division provides youth and adult sports leagues, clinics and camps including basketball, softball, baseball, volleyball, and golf. The division hosts the Cary Road Race as well as local and state level softball tournaments. The division provides Town citizens with the opportunity to rent facilities for group functions, such as picnics, meetings, and other social occasions. Programs and rentals are offered at Bond Park, Hemlock Bluffs Nature Preserve, Herb Young Community Center, Bond Park Community Center, Middle Creek Community Center, Cary Senior Center and other various parks throughout the Town. The division also manages the Cary Teen Council.
The Cultural Arts and Resources Division offers a wide-ranging schedule of classes in dance, visual arts, music, theatre history, architecture, film and videography to enrich the lives of Town citizens. Division staff also provides communication, coordination and support for Town cultural groups. In addition, special events such as Lazy Daze and Spring Daze, the Christmas Tree Lighting, a variety of other downtown events and programs, the Fourth of July Celebration, various cultural festivals and events at the Sertoma Amphitheatre are managed by this division to provide an opportunity for Town citizens to come together as a community to experience artistic excellence. Applause! Cary Youth Theatre provides opportunities for area youth to participate in theatrical productions each year. The Town public art program is administered through the division as well as coordination of Town exhibitions. The division
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also has responsibilities in administering the Town’s Public Art Master Plan. The division oversees the operation of the Page-Walker Arts and History Center, the Cary Arts Center and the Cary Theater and provides general oversight for SMG, the facilities management company contracted to administer the Koka Booth Amphitheatre.
The Sports Venues Division is responsible for planning, implementing and supervising diverse youth and adult programs and special events. Programs and camps are offered in softball, baseball, tennis, soccer, lacrosse, cross country, and action sports. The division also hosts various special events such as the Division II Baseball World Series, the Tennis Campus Championships, the NCAA Soccer College Cup, sk8 Cary Contest as well as local, state and national level soccer, tennis, baseball and softball tournaments. The Town manages several signature parks including the Cary Tennis Park (a 33-court full service tennis facility providing instruction, camps, clinics, tournaments and league play), a Skate Park (a 12,000 square-foot course with ramps and other popular skating obstacles), WakeMed Soccer Park (a 150 acre facility which includes a nationally recognized cross country course, 7 multi-purpose soccer fields and a 10,000 seat stadium home to the North Carolina F. C. professional soccer team). The USA Baseball National Training Complex at Thomas Brooks Park includes 4 full- size baseball fields featuring a stadium field to complement the current 4 field softball/baseball complex at the park.
PUBLIC WORKS DEPARTMENT – (General and Fleet Funds)
There are six non-Utility Fund Public Works divisions: PW/UT Administration, Facilities Management, Fleet Management, Operations, Solid Waste, Recycling, and Yard Waste.
The Public Works and Utilities Administration Division coordinates operations management planning, emergency management planning, work flow management, regulatory permit administration, long term strategic planning, budget preparation, expenditure system control, operations analysis, data collection and analysis, benchmarking report and study preparation, record- keeping, and personnel management for both the Public Works and Utilities
Departments. Additional focus areas include call center management, telephone support, direct dispatch, and work order preparation for customer needs to be addressed by operational staff.
The Facilities Management Division is tasked with the planning and implementation of a comprehensive maintenance and repair program for all Town buildings, landscapes, parks, trails, rights-of-way, special use facilities and the cemetery. Other responsibilities include; special events equipment logistics, street sweeping program, code enforcement pertaining to overgrown properties, roadway and sidewalk obstructions, hazardous tree management and related safety issues. The division also provides emergency response during weather events and logistical support for all Town events.
The Fleet Management Division is responsible for the repair and maintenance of all Town vehicles and equipment. Responsibilities include planning preventive maintenance and replacement, providing fuel for all Town vehicles and equipment, managing the pool car fleet, analyzing equipment useful life and availability rates, and maintaining related cost data for all departments utilizing vehicle and equipment assets. The Fleet Management Division is accounted for in a separate internal service fund where services, parts, and fuels are charged to user departments.
The Operations Division performs a variety of duties serving both Utility and General Fund functions. Key areas of responsibility for General Fund functions include maintenance and repair of storm water conveyance systems, streets, sidewalks, curb and gutter, traffic signals, traffic signs and traffic markings. Other responsibilities include inclement weather response operations such as snow and ice control, storm recovery and debris removal and chipping services. The Operations group also provides program support to other divisions and departments across the Town and maintains around-the-clock response capabilities with after-hours/weekend response teams for traffic signals and construction.
The Solid Waste Management, Recycling and Yard Waste Division provides curbside household garbage collection services on a weekly basis to
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households and small businesses. This division is also responsible for the collection of recyclables, yard waste and special and bulky items, as well as code enforcement for debris and health and safety related issues, emptying downtown litter containers, processing and disposing of debris resulting from inclement weather, loose leaf collection and the operation of the Dixon Avenue Citizen Convenience Center / Transfer Station. This group also coordinates a solid waste education program to increase citizen understanding of waste reduction/diversion opportunities, and the development of long range disposal operations.
WATER RESOURCES DEPARTMENT – (General and Utility Funds)
The Water Resources Department plans for the Town’s long-range strategic water supply and wastewater treatment needs and protection of water quality to ensure that Cary remains highly competitive for economic development and quality of life. Water quality protection ensures that rainwater is managed well and our drinking water source, Jordan Lake, is protected from potential pollutants from both within our jurisdiction and regionally. The department prepares thorough master plans to ensure that high performing and cost- effective utility and storm water infrastructure is provided to meet these needs. Whether infrastructure is provided through Town-funded capital projects or private development, the department ensures that cohesive, quality and efficient infrastructure systems are provided to meet our utility and storm water management needs for a strong future.
TRANSPORTATION AND FACILITIES DEPARTMENT
The Transportation and Facilities Department focuses on project investments in transit, transportation and Town-wide facilities. We embrace a town-wide collaborative and adaptive effort in the development of capital projects to ensure holistic project delivery that is consistent with our Imagine Cary Community Plan. Specifically, the department is responsible for the planning, design, and construction of all Town facilities including parks, sidewalks, greenways, Town- owned buildings, streets, and bicycle routes. Real estate purchases associated with Town projects and related surveying and technical services are also
overseen by this group as well as management of the traffic signal system. The Town’s GoCary transit program is also assigned to this department.
PLANNING DEPARTMENT
The Planning Department applies a combination of Imagine Cary Community Plan principles, Cary’s Land Development Ordnance regulations and adaptive leadership concepts to respond to the diverse needs of citizens, business owners and developers. The staff develops and implements comprehensive land use plans, district and corridor plans and manages annexations, rezonings, development plan review, plat approvals, variance requests and the assigning of addressing. The Development Compliance team ensures that sites are developed in compliance with approved plans and addresses zoning compliance. Historic preservation and community development improvement programs are also supported by the department. Planning staff assembles demographic data, maintains and enforces zoning ordinances, processes sign and other permits, and prepares maps. The staff makes detailed presentations on rezoning and special use cases to the Town Council. The staff also makes presentations to and provides administrative staff support for the Zoning Board of Adjustment, the Planning and Zoning Board and the Historic Preservation Commission.
The Planning Department contributes to the success of the Town through its integral role in the implementation of the Imagine Cary Community Plan. Planning Department staff, in collaboration with fellow Town employees, citizens, and stakeholders strive to realize the values of the Community Plan, such as fostering strong neighborhoods, creating vibrant destinations, protecting natural resources, managing future land use, and encouraging redevelopment and infill, to meet the needs of a growing population and to ensure Cary remains great.
INSPECTIONS AND PERMITS DEPARTMENT
The Inspections and Permits Department is responsible for the administration and enforcement of all residential and commercial elements of the North Carolina State Building Code and local ordinances related to the construction
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of buildings and other structures. This includes the installation of plumbing, electrical, heating, refrigeration, air conditioning, and fire prevention systems. This responsibility can be grouped in three main functional areas; building code plan review, building code field inspections, and state mandated fire inspections for existing commercial and multi-family structures.
Building Code Enforcement is the only municipal service mandated by the NC General Assembly (G.S. 160A-411). The department enforces the NC State Building Code—which includes Building (commercial), Accessibility, Residential, Plumbing, Mechanical, Fuel Gas, Electrical, Fire, and Energy Conservation Codes—through the activities of permitting and inspections. The plan review group reviews construction drawings for compliance with the NC State Building Code and once approved, building permits are issued by the Development Services Department staff. The inspection group ensures buildings and other structures are constructed and/or altered in accordance with the approved plans and in compliance with the NC State Building Code. Lastly, mandated, routine fire inspections are completed on commercial and multi-family structures on a 1-year, 2-year, and 3- year schedule based on occupancy time.
The Inspections and Permits Department promotes life safety by ensuring state building code compliance while providing quality service and responsiveness to our citizens, contractors, and design professionals. The department leverages technology whenever possible to be more efficient and streamline work as evidenced by the implementation of electronic plan review for building permits in FY 2018.
DEVELOPMENT SERVICES DEPARTMENT
The Development Services Department (DSD) coordinates the Town’s development review process, with a focus on providing accurate, timely,
friendly, clear and consistent service. We offer a professional presence throughout development project lifetimes — from site plan to certificate
of occupancy. DSD continuously examines models where we can proactively communicate and collaborate with those we serve, looking for ways to improve the development process.
The Department is organized into the following functional areas:
Development Customer Service Desk and Contact Center Receives incoming telephone calls, general emails, and other electronic media, answers general questions, and routes calls appropriately. Coordinates and schedules inspections for Planning, Zoning, Minimum Housing, Inspections and Permits, Fire Code Enforcement, and building permit-related inspections by other Town departments.
Development Technicians
Process and help facilitate the review of various development, building, water, sewer and reclaimed water applications. Calculate appropriate fees by applying current fee schedule to submitted plans. Additionally, development technicians facilitate the review of sign permits, and real estate plats. Development Technicians serve as a resource to citizens and the development community by providing assistance with Town applications, policies and procedures.
Development Liaisons
Help customers successfully navigate the development process. Serve as liaisons between Cary and the business community, developers, architects, engineers, landowners, attorneys, citizens and contractors who are conducting development related business. Development Liaisons are a customer’s primary point of contact with the Town throughout the life of a project.
PUBLIC WORKS UTILITY DEPARTMENT – (Utility Fund)
The Utility Fund incorporates ten divisions: Administration, Utility Systems Management, Pretreatment, Reclaimed Water, Operations, North Water Reclamation Facility, South Cary Water Reclamation Facility, Western Wake Water Reclamation Facility, Cary/Apex Water Treatment Facility, and Remote Water Infrastructure.
The Public Works and Utilities Administration Division operates in the General Fund. Utility-related activity is reimbursed by the Utility Fund. This division coordinates operations management planning, emergency management
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planning, work flow management, regulatory permit administration, long term strategic planning, budget preparation, expenditure system control, operations analysis, data collection and analysis, benchmarking report and study preparation, record-keeping, and personnel management for both the Public Works and Utilities Departments. Additional focus areas include call center management, telephone support, direct dispatch, and work order preparation for customer needs to be addressed by operational staff.
The Utility Systems Management Division provides regulatory program oversight, maintenance management and implementation for wastewater pumping facilities, wastewater odor control, pump station SCADA and instrumentation, industrial wastewater flow data, and inflow/infiltration functions. This division participates in engineering studies and related system review functions.
The Pretreatment Division implements the Town’s industrial pretreatment program, user fee program for industrial and commercial users of the sewer system, and the fats, oils, and grease (FOG) program that helps prevent blockages and overflows in the sanitary collection system. The Pretreatment Division is the primary contact for regulatory agencies that assess the Town’s overall regulation and control of what is discharged into the sanitary sewer collection system.
The Reclaimed Water Division provides regulatory program oversight, operations and maintenance of the Town’s three reclaimed water distribution systems. This division participates in engineering studies and provides education and training to reclaimed water customers, cooling tower customers, and landscape contractors who use reclaimed water.
The Operations Division operates in the General Fund. Utility-related activity is reimbursed by the Utility Fund. This division performs a variety of duties serving both Utility and General Fund functions. Key areas of responsibility for General Fund functions include maintenance and repair of storm water conveyance systems, streets, sidewalks, curb and gutter, traffic signals, traffic signs and traffic markings. Other responsibilities include inclement weather response operations such as snow and ice control, storm recovery and debris
removal and chipping services. The Operations group also provides program support to other divisions and departments across the Town and maintains around-the-clock response capabilities with after-hours/weekend response teams for traffic signals and construction.
The North and South Cary Water Reclamation Facilities treat wastewater generated by Cary’s utility customers. The North Cary facility is permitted and maintains the capacity to treat up to 12 million gallons of wastewater per day. The South Cary facility is permitted and maintains the capacity to treat up to 12.8 million gallons of wastewater per day. Operations also include performing preventive, predictive, and corrective maintenance for the main plant site, biosolids removal and disposal, and reclaimed water production.
The Western Wake Water Reclamation Facility treats wastewater generated by western Cary, Morrisville, Apex, and Wake County Research Triangle Park utility customers. The facility began accepting wastewater on July 30, 2014 and began discharging treated water to the Cape Fear River on August 11, 2014. The facility is permitted and maintains the capacity to treat 18 million gallons of wastewater per day. Ongoing efforts include preventive, predictive and corrective maintenance for the facility, biosolids processing facility, treated effluent pumping station and associated discharge facilities at the Cape Fear River. Operating and future capital costs will be split between the Towns of Cary and Apex at a 66% / 34% split, respectively.
The Cary/Apex Water Treatment (CAWTF) mission is to provide reliable and safe water service. This is achieved through ongoing efforts which include preventive, predictive and corrective maintenance for the treatment facility, raw water intake and pumping facility, and the finished water distribution pump station. The service area for the Cary/Apex Water Treatment Facility includes: Cary, Apex, Morrisville, RDU Airport and the Wake County portion of Research Triangle Park. The Town of Apex pays a portion of the operating costs of the facility (23% of capital costs and actual usage of other costs) as 23% owner of the facility. The facility also manages the disposal of water treatment residuals and develops and manages alternative residual disposal methods. Capacity currently is 40 million gallons per day (MGD), and the current expansion project
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TOWN BOARDS AND COMMISSIONS
PUBLIC ART ADVISORY BOARD Mr. Thomas Gruber, Chair
PLANNING AND ZONING BOARD Mr. Mark Evangelista, Chair
PARKS, RECREATION AND CULTURAL RESOURCES ADVISORY BOARD
Ms. Sarah Martin, Chair
HISTORIC PRESERVATION COMMISSION Mr. Brent Miller, Chair
ENVIRONMENTAL ADVISORY BOARD Mr. Rick Savage, Chair
ZONING BOARD OF ADJUSTMENT Mr. Richard Roddy, Chair
INFORMATION SERVICES ADVISORY BOARD
Mr. Robert Campbell, Chair
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FINANCIAL SECTION
Report of Independent Auditor The Honorable Mayor and Members of the Town Council Town of Cary, North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Cary, North Carolina (the “Town”), as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents. 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. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in 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 financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s 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. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town as of June 30, 2018, and the respective changes in financial position and cash flows thereof, and the respective budgetary comparison for the General Fund and the Transit, Emergency Telephone System for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As discussed in Note 16 to the basic financial statements, the Town adopted Governmental Accounting Standards Board Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. As a result, net position as of June 30, 2017 has been restated. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and the Required Supplementary Information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a required 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.
Supplementary and Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The Introductory Section, Supplementary Information, Statistical Section, and Schedule of Expenditures of Federal and State Awards, as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and the State Single Audit Implementation Act are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Supplementary Information and the Schedule of Expenditures of Federal and State Awards are the responsibility of management and were derived from and relates 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 to 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 Supplementary Information and the Schedule of Expenditures of Federal and State Awards, are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of basic financial statements and, accordingly, we do not express an opinion or provide assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated October 31, 2018 on our consideration of the Town’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of the report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance.
Raleigh, North Carolina October 31, 2018
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MANAGEMENT’S DISCUSSION AND ANALYSIS MANAGEMENT’S DISCUSSION AND ANALYSIS As management of the Town of Cary, we offer readers of the Town’s financial statements this narrative overview and analysis of the financial position and activities of the Town as of and for the fiscal year ended June 30, 2018. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the Town’s financial statements, which follow this narrative.
FINANCIAL HIGHLIGHTS
• The Town’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at the close of the fiscal year by approximately $1.64 billion (net position). Of this amount, $242 million (unrestricted) may be used to meet the Town’s ongoing obligations to citizens and creditors.
• The Town’s net position decreased by $1.7 million in fiscal year 2018. The governmental net position decreased $16.2 million and the business-type net position increased by $14.5 million (including prior period adjustments). Excluding these adjustments, the increases in governmental and business- type net positions are the result of General Fund and Utility Systems Enterprise Fund revenues that exceeded expenses and the increase in capital assets, both from Town constructed assets and the donation of infrastructure from developers.
• In fiscal year 2018, the Town implemented a new Other Post-Employment Benefits (“OPEB”) accounting standard that recorded the full actuarial determined long-term liability. This change resulted in a prior period adjustment related to a change in accounting principle of $71.6 million ($56.4 million governmental and $15.2 million business-type). With the prior period adjustment, the beginning liability was $146 million and the fiscal year 2018 ending liability was $146.4 million.
• In fiscal year 2018 the long-term liability associated with the Town’s portion
of the Local Government Employee Retirement System (“LGERS”), decreased from $27.8 million to $19.5 million due to changes in estimates and actuarial details.
• As of the close of the fiscal year, the Town’s governmental funds reported combined ending fund balances of approximately $248.6 million, an increase of $20.4 million from the prior year. The total fund balance in the General Fund decreased $12.9 million from fiscal year 2017. Total fund balance in the Capital Project Fund increased $32.8 million partially due to reimbursements received for on-going infrastructure and sports turf fields construction. The fund balances in the four special revenue funds increased a total of $.6 million. The increase was partially due to timing of the receipt of federal and local funds for transit during fiscal year 2018. A discussion pertaining to the composition of governmental fund balance is available in the Notes to the Financial Statements.
• At the end of the current fiscal year, unassigned fund balance for the General Fund was $49.6 million, or 32.5% (3.9 months) of total general fund expenditures for the 2018 fiscal year.
• The Town issued $31 million of general obligation public improvement bonds, Series 2017A to finance fire, parks and transportation projects that were approved as part of the 2012 community investment bond referendum. The Town also issued $28.815 million in general obligation bonds to refinance $31.5 million in existing bonds. The Town also issued $92.925 million in combined enterprise system revenue refunding bonds, Series 2017B to refinance $92.175 million in existing bonds. The Town repaid $25.3 million of bond principal and installment financing principal (including open space) during the year net of contractual capital project partner governments’ shares.
• The Town maintained its outstanding AAA bond ratings from all three major rating agencies for general obligation bonds and revenue bonds. The Town has the highest rating possible from all three rating agencies for all three types of debt.
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• The Town’s total investment earnings during the year were $2.6 million, an increase of $1.5 million from the prior year. Realized investment earnings increased about $2 million from fiscal year 2017, however due to the mark to market adjustment a smaller increase in earnings is shown. The average yield on the investment portfolio increased from 1.03% to 1.31%. The average yield on other deposits increased from .41% to .97%.
OVERVIEW OF THE FINANCIAL STATEMENTS This discussion and analysis is intended to serve as an introduction to the Town of Cary’s basic financial statements. The Town’s basic financial statements consist of three components: 1) entity-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report contains other supplemental information in addition to the basic financial statements themselves.
Entity-Wide Financial Statements The entity-wide financial statements, a Statement of Net Position and a Statement of Activities, are designed to provide readers with a broad overview of the Town’s finances in a manner similar to a private-sector business. The entity-wide statements provide short and long-term information about the Town’s financial status as a whole.
The two entity-wide statements report the Town’s net position and how it has changed. Net position is the difference between the Town’s total assets and deferred outflows of resources and total liabilities and deferred inflows of resources. Measuring net position is one way to gauge the Town’s financial condition.
Both of the entity-wide financial statements distinguish functions of the Town that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business- type activities). The governmental activities of the Town include most of the Town’s basic services such as police, fire, solid waste and recycling, facilities
and operations maintenance, planning, transportation and facilities, building inspections, parks, recreation and cultural programs as well as the administrative support functions. The business-type activity of the Town primarily consists of water and sewer utility services.
The Cary Economic Development Corporation is the Town’s only component unit, but has no assets, liabilities or other activity to be recorded. This corporation exists in order for the Town to issue and manage certificates of participation. In accordance with the Governmental Accounting Standards Board criteria for inclusion in the reporting entity, the Town of Cary has no reportable component units.
The entity-wide financial statements are Exhibits A and B of this report.
Fund Financial Statements: The fund financial statements provide more detailed information about the Town’s major funds. Funds are the accounting tools used to track specific sources of funding such as those required by law or for specific purposes. The Town of Cary, like all other governmental entities in North Carolina, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements, such as the North Carolina General Statutes, the Town’s budget ordinance or revenue bond covenants. All of the funds of the Town can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds: Most of the Town’s basic services are included in governmental funds which are essentially the same functions reported as governmental activities in the entity-wide financial statements. However, unlike the entity-wide financial statements, governmental fund financial statements focus on how cash and other assets are and can be used for near-term spending as well as on balances of resources available for spending at the end of the fiscal year. This information may be useful in evaluating the Town’s resources for near-term financial requirements.
Because the focus of governmental funds is narrower than that of the entity- wide financial statements, it is useful to compare the information presented
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for governmental funds with similar information presented for governmental activities in the entity-wide financial statements. By doing so, readers may better understand the long-term impact of the Town’s near-term financing decisions. Exhibit F describes the differences in the statement of revenues, expenditures, and changes in fund balances of governmental funds to the entity-wide statement of activities.
The Town of Cary maintains six 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 each of these funds. The General Fund and the Capital Project Fund are considered to be major funds. Although the Transit Special Revenue Fund, the Emergency Telephone System Special Revenue Fund, the CDBG Special Revenue Fund, and the Economic Development Special Revenue Fund are not considered to be major funds, they are being presented separately as major funds in the fund financial statements to provide more transparency.
The Town of Cary adopts an annual appropriated budget for its General Fund. Annual budgets have also been adopted for the Transit Special Revenue Fund, the Emergency Telephone System Special Revenue Fund and the General Capital Reserve Fund, a sub-fund of the Capital Project Fund. Multi-year budgets are maintained for the CDBG Special Revenue Fund, the Economic Development Special Revenue Fund and all of the sub-funds of the Capital Project Fund except the Capital Reserve sub-fund, which is mentioned above.
The basic governmental fund financial statements can be found on Exhibits C through I.
Proprietary Funds: The Town’s business type activities are reported in proprietary funds. The Town of Cary maintains two different types of proprietary funds. An enterprise fund is used to report the same function presented as business-type activities in the entity-wide financial statements, which for the Town is the water and sewer utility service. Internal service funds are used to
accumulate and allocate costs internally among the Town’s various functions. The Town uses internal service funds to account for its fleet maintenance services and employee health insurance. Because both of these services predominantly benefit the governmental rather than business-type functions, their net positions have been included within governmental activities in the entity-wide financial statements.
Proprietary funds provide the same type of information as the entity-wide financial statements, only in more detail. The utility systems enterprise fund is considered to be a major fund of the Town of Cary. Because the internal service funds are not major funds, both internal service funds are combined in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in combining statements in the supplementary information section of this comprehensive annual financial report.
The basic proprietary fund financial statements can be found on Exhibits J through L of this report.
Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the information provided in the entity-wide and fund financial statements.
Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s progress toward funding its obligations to provide pension benefits related to its LEOSSA plan and the Town’s share of LGERS and OPEB plan with the latter two benefitting all qualified employees.
The combining statements are presented immediately following the required supplementary information.
ENTITY-WIDE FINANCIAL ANALYSIS
As noted earlier, net position may serve over time as a useful indicator of a Town’s financial position. As of June 30, 2018, assets exceeded liabilities by $1.64 billion.
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The following tables reflect net position in millions of dollars.
TOWN OF CARY’S NET POSITION IN MILLIONS OF DOLLARS
By far, the largest portion of the Town’s net position ($1.4 billion or 83%) represents the Town’s investment in capital assets (land, buildings, machinery, and equipment), less any related outstanding debt or existing obligations that are related to those assets. The Town of Cary uses these capital assets to provide services to citizens and customers; consequently, these assets are not available for future spending. Although the Town of Cary’s net 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 cannot be reasonably used to liquidate these liabilities.
An additional portion of the Town’s net position ($34.5 million or 2%) are resources that are subject to external restrictions on how they may be used. Restrictions include Stabilization by State Statute as dictated by North Carolina General Statutes; unspent grant or other revenues with restrictive purposes and an endowment related to the Steven’s Nature Center. The remaining balance ($241.9 million or 15%) is unrestricted and may be used to meet the Town’s ongoing obligations to citizens and creditors.
At the end of the current fiscal year, the Town has positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business-type activities. The same situation has held true for the past sixteen fiscal years since the net position was first computed for the entity-wide statements.
The Town’s net position decreased by $1.7 million for the fiscal year ended June 30, 2018. This included a prior period adjustment of $71.6 million ($56.4 million governmental and $15.2 million business-type) related to OPEB. Excluding the prior period adjustment, an increase was primarily the result of the General Fund and Utility System Enterprise Fund revenues exceeding expenses and the increase in capital assets, both from Town constructed assets and the donation of infrastructure from developers. Assets donated by developers during the year are valued at $44.4 million (including developer fee credit adjustments) for streets, land, and other general infrastructure and $8.7 million for utility infrastructure.
Net Investment in Capital Assets
83%
Restricted 2%
Unrestricted 15%
Breakdown of 2018 Total Net Position
The basic proprietary fund financial statements can be found on Exhibits J through L of this report.
Notes to the Financial Statements: The notes provide additional information that is essential to a full understanding of the information provided in the entity-wide and fund financial statements.
Other Information: In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the Town’s progress toward funding its obligations to provide pension benefits related to its LEOSSA plan and the Town’s share of LGERS and OPEB plan with the latter two benefiting all qualified employees.
The combining statements are presented immediately following the required supplementary information.
Entity-Wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a Town’s financial position. As of June 30, 2018, assets exceeded liabilities by $1.64 billion.
The following tables reflect net position in millions of dollars.
2018 2017 2018 2017 2018 2017 Current and Other Assets $313.5 283.1 299.8 301.2 613.3 584.3 Capital Assets 888.8 844.7 828.0 808.4 1,716.8 1,653.1 Total Assets 1,202.3 1,127.8 1,127.8 1,109.6 2,330.1 2,237.4
Deferred outflows of resources 23.1 30.4 3.8 6.1 26.9 36.5
Long-Term Liabilities 298.7 225.7 342.3 342.5 641.0 568.2 Other Liabilities 45.3 38.6 15.2 14.5 60.5 53.1 Total Liabilities 344.0 264.3 357.5 357.0 701.5 621.3
Deferred inflows of resources 12.4 8.7 3.3 2.4 15.7 11.1
Net Position: Net Investment in Capital Assets 839.0 785.3 524.4 503.8 1,363.4 1,289.1 Restricted 34.4 30.6 .1 -- 34.5 30.6 Unrestricted (4.4) 69.3 246.3 252.5 241.9 321.8 Total Net Position $869.0 885.2 770.8 756.3 1,639.8 1,641.5
Total
Town of Cary's Net Position
Activities Governmental Business-Type
Activities
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TOWN OF CARY CHANGES IN NET POSITIONTown of Cary Changes in Net Position
Governmental Business-type Activities Activities Total
2018 2017 2018 2017 2018 2017 Revenues:
Program Revenues: Charges for Services $35.3 33.8 93.6 90.7 128.9 124.5 Operating Grants and Contributions 7.0 6.6 -- -- 7.0 6.6 Capital Grants and Contributions 58.3 34.1 8.8 12.0 67.1 46.1
General Revenues: Property Taxes 92.3 90.0 -- -- 92.3 90.0 Sales Tax 33.8 32.2 -- -- 33.8 32.2 Occupancy Tax 1.3 1.2 -- -- 1.3 1.2 ABC Revenue 1.0 0.9 -- -- 1.0 0.9 Other Taxes 0.8 0.1 -- -- 0.8 0.1 Grants and contributions not not restricted to specific programs 11.4 11.2 -- -- 11.4 11.2 Investment Earnings 1.2 0.6 1.4 0.5 2.6 1.1 Other 0.3 0.3 0.2 -- 0.5 0.3
Total Revenues 242.7 211.0 104.0 103.2 346.7 314.2
Expenses: General Government 29.0 21.7 -- -- 29.0 21.7 Public Safety 51.6 52.0 -- -- 51.6 52.0 Public Works 32.0 32.8 -- -- 32.0 32.8 Parks, Recreation and Culture 20.8 20.5 -- -- 20.8 20.5 Development 11.4 8.7 -- -- 11.4 8.7 Infrastructure 53.8 41.6 -- -- 53.8 41.6 Interest on Long-Term Debt & Fees 3.9 3.2 -- -- 3.9 3.2 Water and Sewer -- -- 74.3 69.4 74.3 69.4
Total Expenses 202.5 180.5 74.3 69.4 276.8 249.9
Increase in Net Position 40.2 30.5 29.7 33.8 69.9 64.3
NET POSITION - Beginning of Year 885.2 863.2 756.3 722.5 1,641.5 1,585.7 Prior Period Adjustment (56.4) (8.5) (15.2) -- (71.6) (8.5)
NET POSITION - Beginning of Year, restated 828.8 854.7 741.1 722.5 1,569.9 1,577.2 NET POSITION - End of Year $869.0 885.2 770.8 756.3 1,639.8 1,641.5
Governmental Activities: Governmental activities increased the Town’s net position by $40.2 million (excluding the prior period adjustment of $56.4 million), accounting for 58% of the total growth in net position of the Town of Cary. Key elements of this increase are as follows:
• Property taxes, the largest single revenue source, increased by $2.3 million (2.6%). The tax rate remained at $.35 per hundred dollars valuation of taxable property. The revenue increase, therefore, was due to an increase in the tax base primarily from new development.
• Charges for services increased by $1.5 million (4.4%) partially resulting from modest increases in revenue from residential and commercial building permit activity, transportation development fees and recreation payment-in-lieu payments.
• Capital grants and contributions revenue increased $24.2 million (71%) as a result of an increase in developer donated streets and other infrastructure. Grants for highway and greenway projects and revenue from an interlocal agreement for construction of sports turf fields also contributed to the increase.
• Sales tax revenue increased $1.6 million (5%) partially due a modest population increase of 2.2% and continued improvement in the local economic climate.
• Investment earnings increased $.6 million (100%). Realized earnings, which does not include the mark to market adjustment, increased over $.9 million due to an increase in the earnings rate.
• Expenses increased $22 million (12.2%) partially due to personnel related costs (salaries, benefits and other post-employment benefit expenses), technology initiatives, increased depreciation on capital assets and increased construction expenditures on transportation and parks, recreation and cultural resources capital projects.
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Governmental Activities: Governmental activities increased the Town’s net position by $40.2 million (excluding the prior period adjustment of $56.4 million), accounting for 58% of the total growth in net position of the Town of Cary. Key elements of this increase are as follows:
• Property taxes, the largest single revenue source, increased by $2.3 million (2.6%). The tax rate remained at $.35 per hundred dollars valuation of taxable property. The revenue increase, therefore, was due to an increase in the tax base primarily from new development.
• Charges for services increased by $1.5 million (4.4%) partially resulting from modest increases in revenue from residential and commercial building permit activity, transportation development fees and recreation payment- in-lieu payments.
• Capital grants and contributions revenue increased $24.2 million (71%) as a result of an increase in developer donated streets and other infrastructure. Grants for highway and greenway projects and revenue from an interlocal agreement for construction of sports turf fields also contributed to the increase.
• Sales tax revenue increased $1.6 million (5%) partially due a modest
Charges for Services 90%
Grants and Contributions
8.6%
Investment Earnings 1.4%
Revenues by Source - Business-type Activities
Charges for Services 14.5%
Grants and Contributions
27%
Property Taxes 38%
Sales and Other Taxes 15.2%
Unrestricted Grants and
Contributions 4.7%
Investment Earnings
.5% Other .1%
Revenues by Source - Governmental Activities
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population increase of 2.2% and continued improvement in the local economic climate.
• Investment earnings increased $.6 million (100%). Realized earnings, which does not include the mark to market adjustment, increased over $.9 million due to an increase in the earnings rate.
• Expenses increased $22 million (12.2%) partially due to personnel related costs (salaries, benefits and other post-employment benefit expenses, increased depreciation on capital assets and increased construction expenditures on transportation and parks, recreation and cultural resources capital projects.
Business-type Activites: Business-type operational activities increased the Town of Cary’s net position by $29.7 million (excluding the prior period adjustment of $15.2 million), accounting for 42% of the total growth in the Town’s net position. Key elements of the Business-type increase are as follows:
Charges for services revenue increased $2.9 million (3.2%) primarily from a utility rate increase of 3% for a typical residential customer. The utility rates were increased due to increased operating costs and debt service for capital infrastructure. Wholesale water sales to Durham also contributed to the increased revenue.
• Capital grants and contributions revenue decreased $3.2 million (26.7%) partially due to a decrease in developer donated water and sewer lines.
• Investment earnings increased $.9 million (180%). Realized earnings, which does not include the mark to market adjustment, increased over $1.1 million due to an increase in the earnings rate.
• Water and sewer expenses increased $4.9 million (7%) from the prior year partially due to an increase in personnel related costs and increased construction costs related to the Cary/Apex raw water transmission pipeline.
FINANCIAL ANALYSIS OF THE TOWN’S FUNDS
As noted earlier, the Town of Cary uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds: The focus of the Town of Cary’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, available fund balance may serve as a useful measure of the Town’s net resources available for spending at the end of the fiscal year. Available fund balance excludes nonspendable portions and the amount restricted for stabilization by statute, and may include funds otherwise restricted, committed or assigned for specific purposes, but available for appropriation.
As of the end of the current fiscal year, the Town’s governmental funds reported combined ending fund balances of $248.6, an increase of $20.4 million compared to the prior year. Total governmental fund balance consists of 1) $2.1 million of nonspendable funds due to the nature of the balances, 2) $20.5 million restricted for stabilization per state statute, 3) $31.8 million restricted for specific purposes, but available for appropriation by Council, 4) $130.9 million already committed by Council for specific activities and projects (commitments can be changed by Council), 4) $13.8 million assigned to specific activities and areas that can be appropriated by Council and 5) $49.5 million unassigned
Charges for Services 90%
Grants and Contributions
8.6%
Investment Earnings 1.4%
Revenues by Source - Business-type Activities
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funds that are available for appropriation by Council. For a complete breakout and explanation of fund balance categories, see Exhibit C and the Notes to the Basic Financial Statements.
The General Fund is the chief operating fund of the Town of Cary. At the end of the current fiscal year, total fund balance in the General Fund was $88.4 million. Of this total, $67.4 million (76%) constitutes available fund balance in the General Fund, which is legally available for spending at the Cary Town Council’s discretion per state statute. Available fund balance in the General Fund consists of $8.8 million appropriated in the fiscal year 2019 budget, $9 million of restricted, committed or assigned funds for specific purposes and $49.6 million of unassigned funds. For more details on General Fund balance, see the Notes to the Basic Financial Statements.
The fund balance of the Town’s general fund decreased by $12.9 million during the 2018 fiscal year. Key components of this change are as follows:
Property taxes, the largest revenue source, increased by $2.3 million (2.6%) mainly due to an increase in the tax base.
Other taxes increased $1.7 million (5%) over the prior year as a result of an increase in sales tax revenue from a continued improvement in the economic climate.
Restricted Intergovernmental revenue increased $.4 million (66%) primarily due to increased federal seized drug fund revenue and grant funds received from the Federal Emergency Management Administration (FEMA) for Hurricane Matthew.
Sales and service revenue increased $.8 million (4.7%) partially due to increased revenues from various sports venues.
Operational expenditures increased $11.2 million (8%) from the prior year due to expenditures for expanded/enhanced programs and facilities and increased personnel costs.
Transfers to the Capital Projects Fund increased $3.5 million (16.9%) primarily due to a continued emphasis on downtown related development.
The Capital Projects Fund includes street, downtown, parks and recreation, fire, and general government capital projects. At the end of the current fiscal year, total fund balance was $158.3 million, an increase of $32.8 million from the prior year in part due to revenue received from grants and development fees for expenditures associated with mainly street and parks and recreation capital projects. In addition, transfers from the General Fund for Downtown and facility-related projects increased the Capital Project Fund fund balance.
The Transit Special Revenue fund had an increase in fund balance of $.4 million partially due to revenue received from a county administered transit tax. The CDBG Special Revenue fund ended FY2018 with a $.1 million deficit fund balance due to the timing of grant funds.
Proprietary Funds: The Town’s proprietary funds provide the same type information found in the entity-wide financial statements, but in more detail.
While the total Net Position of the Utility Systems Enterprise Fund increased $14.5 million (including the prior period adjustment for OPEB) as compared to previous year, the unrestricted net position decreased $6.8 million (2.7%), from $251.8 million at June 30, 2017 to $245 million at June 30, 2018. This decrease is due to increased operating costs, including depreciation and debt related interest expense and a decrease in water and sewer development fee revenue. There continues to be an increased focus on large capital areas such as the Cary/Apex Water Raw Water Transmission Pipeline, which contributed $9.1 million to the total increase in net investment in capital assets of $20.6 million. Refer to the discussion of the Town’s business-type activities for the other primary factors that created the various fluctuations.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the year, there was a $10.5 million increase in appropriations between the original and final amended budget primarily due to a transfer to the downtown capital project fund for a library parking structure in partnership with Wake County, transfers to the general government capital project fund for storm water related capital purchases and expenditures incurred for the replacement of vehicles included in the Takata airbag recall. The Town maintains
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fund balance in excess of minimal requirements as a fiscal tool to support Town goals in several ways. Timely financial flexibility is afforded by the balances as evidenced in fiscal year 2018. The original adopted budget for fiscal year 2018 anticipated an appropriation from fund balance of $19.6 million. Budget adjustments, discussed above, throughout the year increased authorized spending by $10.5 million. Net variances in revenues and expenditures resulted in a decrease in fund balance of $12.9 million. Due to economic conditions, the Town was very conservative in estimating numerous revenues for fiscal year 2018, including ad valorem taxes, other taxes and unrestricted intergovernmental revenue which together were $1.6 million more than the budgeted amount. Total expenditures were under the revised budget by $14.1 million. Both the conservative measures in estimating revenues and the efforts to reduce expenditures helped to compensate for negative variances in a few miscellaneous revenue accounts..
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets: The Town of Cary’s investment in capital assets for its governmental and business-type activities as of June 30, 2018, totals $1.71 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings, roads, bridges, machinery and equipment, vehicles, software, park facilities, utility plants, water distribution systems and wastewater collection systems. The increase in total capital assets, net of depreciation, over the prior fiscal year was $63.7 million (3.9%). Of this increase, 69.3% was in governmental activities and 30.7% in business-type activities.
• Addition of general infrastructure and land assets of $44.4 million (including developer fee credit adjustments) for developer donated streets and park land;
• Construction-in-progress decreases for completion of radio system and public safety computer-aided dispatch systems and increases for parks, downtown, general government and utility projects and
• Addition of utility infrastructure assets of $8.7 million such as water lines, sewer collection lines and sewer pump stations.
TOWN OF CARY CAPITAL ASSETS, IN MILLIONS (NET OF DEPRECIATION)
Capital Asset and Debt Administration
Capital assets: The Town of Cary’s investment in capital assets for its governmental and business-type activities as of June 30, 2018, totals $1.71 billion (net of accumulated depreciation). This investment in capital assets includes land, buildings, roads, bridges, machinery and equipment, vehicles, software, park facilities, utility plants, water distribution systems and wastewater collection systems. The increase in total capital assets, net of depreciation, over the prior fiscal year was $63.7 million (3.9%). Of this increase, 69.3% was in governmental activities and 30.7% in business-type activities.
Major capital asset changes during the year included the following:
• Addition of general infrastructure and land assets of $44.4 million (including developer fee credit adjustments) for developer donated streets and park land;
• Construction-in-progress decreases for completion of radio system and public safety computer-aided dispatch systems and increases for parks, downtown, general government and utility projects and
• Addition of utility infrastructure assets of $8.7 million such as water lines, sewer collection lines and sewer pump stations.
Town of Cary Capital Assets, in millions (net of depreciation)
Governmental Business-type Activities Activities Total
2018 2017 2018 2017 2018 2017 Land and Improvements $264.2 241.4 26.3 25.9 290.5 267.3 Construction-in-Progress 72.0 75.0 168.5 181.5 240.5 256.5 Buildings and Improvements 84.9 87.5 135.0 138.3 219.9 225.8 Machinery and Equipment 14.3 5.7 5.5 3.3 19.8 9.0 Vehicles 13.1 11.8 2.2 1.5 15.3 13.3 Infrastructure 431.9 417.3 490.4 457.7 922.3 875.0 Intangible Assets 8.4 6.0 0.1 0.2 8.5 6.2 Total Assets $888.8 844.7 828.0 808.4 1,716.8 1,653.1
Additional information on the Town’s capital assets can be found in Note 6 of the Basic Financial Statements.
Long-term Debt: As of June 30, 2018, the Town of Cary had total debt outstanding of $411 million ($440.8 net of deferred adjustments). Of this, $177 million is debt backed by the full faith and credit of the Town in the form of general obligation bonds. $65 million of the general obligation debt is born by the Utility system revenues although the Town’s taxing authority is the true security to the bond holders. $12 million in debt is in the form of asset backed debt and is secured by the town hall campus and other property. The $188 million of revenue bonds are secured solely by the utility system revenues. State Revolving Loans from the State of North Carolina represent both federal and state financing for wastewater and water utility projects. As of June 30, 2018, the amount due for these loans totaled $34 million, which is net of interlocal agreements with the Town of Apex to share in project costs and loan repayment. Total debt is adjusted for deferred balances related to discounts, premiums and refunding accounting losses associated with specific debt issuances.
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Additional information on the Town’s capital assets can be found in Note 6 of the Basic Financial Statements.
Land and Improvements
16.9%
Construction-in- Progress
14%
Buildings and Improvements
13%
Machinery, Equipment, & Vehicles 2%
Intangible Assets .1%
Infrastructure 54%
Entity-Wide Capital Assets as of June 30, 2018
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Long-term Debt: As of June 30, 2018, the Town of Cary had total debt outstanding of $411 million ($440.8 net of deferred adjustments). Of this, $177 million is debt backed by the full faith and credit of the Town in the form of general obligation bonds. $65 million of the general obligation debt is born by the Utility system revenues although the Town’s taxing authority is the true security to the bond holders. $12 million in debt is in the form of asset backed debt and is secured by the town hall campus and other property. The $188 million of revenue bonds are secured solely by the utility system revenues. State Revolving Loans from the State of North Carolina represent both federal and state financing for wastewater and water utility projects. As of June 30, 2018, the amount due for these loans totaled $34 million, which is net of interlocal agreements with the Town of Apex to share in project costs and loan repayment. Total debt is adjusted for deferred balances related to discounts, premiums and refunding accounting losses associated with specific debt issuances.
TOWN OF CARY’S OUTSTANDING DEBT, IN MILLIONS GENERAL OBLIGATION BONDS, INSTALLMENT PURCHASES, REVENUE BONDS, AND STATE REVOLVING LOANS
Town of Cary’s Outstanding Debt, in millions General Obligation Bonds, Installment Purchases,
Revenue Bonds, and State Revolving Loans
In the current year, the Town issued $31 million of general obligation bonds to be financed over 20 years with interest rates ranging from 2% to 5%. The bonds will fund fire, transportation and parks projects. At the same time, the Town also issued $28.8 million of general obligation bonds to ensure $1.3 million in present value debt service savings. Governmental activities saved $.7 million and business-type activities saved $.6 million. The Town also issued $92.9 million of revenue bonds to ensure $6.3 million in present value debt service savings, all to business-type activities.
The Town of Cary maintained “AAA” ratings from Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings for both the general obligation bonds and the Town’s revenue bonds. These bond ratings are a clear indication of the sound financial condition of the Town of Cary. The Town of Cary is one of few municipalities in the country that maintains the highest ratings possible for all types of debt issued from all three major rating agencies. This achievement is a primary factor in keeping interest costs low on the Town’s outstanding debt.
North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that Town’s boundaries. The legal debt margin for the Town of Cary is $1.9 billion. Practically, these statutory limits exceed the Town’s realistic debt capacity. The Town has additional voter debt authorization of $13.7 million in street bonds, $1.8 million in parks and recreation bonds and $.5 million in fire bonds
resulting from a 2012 referenda that remain unissued at June 30, 2018. Of the $16.05 million total in general obligation debt authorized but unissued at June 30, 2018, $3.4 million has been appropriated to capital projects.
Additional information regarding the Town of Cary’s long-term debt can be found in Note 9 of the Basic Financial Statements.
Economic Factors and Next Year’s Budgets and Rates
The Town’s June, 2018 unemployment rate is 3.2%. Cary’s unemployment rate compares favorably to the state’s average unemployment rate of 4.2%. The Town’s estimated population at June 30, 2018, was 163,930, an increase of 3,540 during the year. The number of both single family residential and multi-family residential new construction permits issued increased 0.7% from the prior year while the number of all nonresidential building permits issued decreased 6.5%. These factors were considered in preparing the Town’s budget for fiscal year 2019.
The tax rate in the fiscal year 2019 General Fund budget remains at $.35 per hundred dollars valuation of taxable property, the estimated revenue-neutral tax rate after the January 1, 2016 real property revaluation. State law requires that during revaluation years, each government must publish a tax rate that would keep total property tax revenue at the same level as if revaluation had not taken place.
Other key items to note in the fiscal year 2019 budget include:
• an appropriation of $5.1 million from General Fund fund balance primarily comprised of transfers to governmental capital projects;
• increase the solid waste fee from $16 to $17 per month for residential service; • increase in the vehicle license fee from $15 to $30 to fund transportation capital
projects and for general use; • increases in some water and sewer rates to cover increased costs of related
capital infrastructure improvements. For a typical 5,000 gallon per month residential customer, these rate changes will increase a monthly utility bill by 3%. This increase will help fund a third raw water pipeline to increase water treatment capacity and reliability.
Given the current economic climate and future debt service obligations, the limited capital budget for fiscal year 2019 includes $93.7 million in funding for the following purposes in addition to the current $589.2 million ongoing capital project authorizations:
• $36.2 million for transportation projects; • $7.5 million for parks and recreation projects;
Governmental Business-type Activities Activities Total
2018 2017 2018 2017 2018 2017
General Obligation Bonds $112.4 92.5 65.0 72.3 177.4 164.8 Limited Obligation Bonds 12.1 14.6 -- -- 12.1 14.6 Certificates of Participation and Installment Purchase Contracts -- 0.2 -- -- - 0.2 Revenue Bonds -- -- 187.9 191.1 187.9 191.1 State Revolving Loans, net -- -- 33.6 36.5 33.6 36.5
Total 124.5 107.3 286.5 299.9 411.0 407.2 Deferred Adjustments, net 7.6 4.3 22.2 23.0 29.8 27.3 Total, net $132.1 111.6 308.7 322.9 440.8 434.5
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In the current year, the Town issued $31 million of general obligation bonds to be financed over 20 years with interest rates ranging from 2% to 5%. The bonds will fund fire, transportation and parks projects. At the same time, the Town also issued $28.8 million of general obligation bonds to ensure $1.3 million in present value debt service savings. Governmental activities saved $.7 million and business-type activities saved $.6 million. The Town also issued $92.9 million of revenue bonds to ensure $6.3 million in present value debt service
savings, all to business-type activities.
The Town of Cary maintained “AAA” ratings from Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings for both the general obligation bonds and the Town’s revenue bonds. These bond ratings are a clear indication of the sound financial condition of the Town of Cary. The Town of Cary is one of few municipalities in the country that maintains the highest ratings possible for all types of debt issued from all three major rating agencies. This achievement is a primary factor in keeping interest costs low on the Town’s outstanding debt.
North Carolina general statutes limit the amount of general obligation debt that a unit of government can issue to 8 percent of the total assessed value of taxable property located within that Town’s boundaries. The legal debt margin for the Town of Cary is $1.9 billion. Practically, these statutory limits exceed the Town’s realistic debt capacity. The Town has additional voter debt authorization of $13.7 million in street bonds, $1.8 million in parks and recreation bonds and $.5 million in fire bonds resulting from a 2012 referenda that remain unissued at June 30, 2018. Of the $16.05 million total in general obligation debt authorized but unissued at June 30, 2018, $3.4 million has been appropriated to capital projects.
Additional information regarding the Town of Cary’s long-term debt can be found in Note 9 of the Basic Financial Statements.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
The Town’s June, 2018 unemployment rate is 3.2%. Cary’s unemployment rate compares favorably to the state’s average unemployment rate of 4.2%. The Town’s estimated population at June 30, 2018, was 163,930, an increase of 3,540 during the year. The number of both single family residential and multi-family residential new construction permits issued increased 0.7% from the prior year while the number of all nonresidential building permits issued decreased 6.5%. These factors were considered in preparing the Town’s budget for fiscal year 2019.
The tax rate in the fiscal year 2019 General Fund budget remains at $.35 per
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hundred dollars valuation of taxable property, the estimated revenue-neutral tax rate after the January 1, 2016 real property revaluation. State law requires that during revaluation years, each government must publish a tax rate that would keep total property tax revenue at the same level as if revaluation had not taken place.
Other key items to note in the fiscal year 2019 budget include:
an appropriation of $5.1 million from General Fund fund balance primarily comprised of transfers to governmental capital projects;
increase the solid waste fee from $16 to $17 per month for residential service;
increase in the vehicle license fee from $15 to $30 to fund transportation capital projects and for general use;
increases in some water and sewer rates to cover increased costs of related capital infrastructure improvements. For a typical 5,000 gallon per month residential customer, these rate changes will increase a monthly utility bill by 3%. This increase will help fund a third raw water pipeline to increase water treatment capacity and reliability.
Given the current economic climate and future debt service obligations, the limited capital budget for fiscal year 2019 includes $93.7 million in funding for the following purposes in addition to the current $589.2 million ongoing capital project authorizations:
$36.2 million for transportation projects;
$7.5 million for parks and recreation projects;
$5.2 million for general government projects;
$2.8 million for fire projects;
$.8 million for downtown projects;
$14.1 million (net of partner reimbursements) for water projects; and
$27.1 million (net of partner reimbursements) for sewer projects, primarily related to pump station and waste water plant improvements.
The Town’s capital improvement plan for ten years beyond fiscal year 2019 totals $1.6 billion.
REQUESTS FOR INFORMATION
This report is designed to provide a general overview of the Town’s finances for those with an interest in the Town of Cary’s finances. Questions concerning any of the information found in this report or requests for additional financial information should be directed to Karen Mills, Chief Financial Officer, Town of Cary, Post Office Box 8005, Cary, North Carolina 27512-8005; (919) 469-4110 or [email protected].
BASIC FINANCIAL STATEMENTS
ENTITY-WIDE FINANCIAL STATEMENTS
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STATEMENT OF NET POSITION TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF NET POSITION June 30, 2018
EXHIBIT A Business Total Governmental Type Primary
Activities Activities Government ASSETS
Equity in Pooled Cash and Investments $230,091,792 272,219,418 502,311,210 Accrued Interest on Investments 842,687 973,815 1,816,502 Ad Valorem Taxes Receivable, net 132,071 -- 132,071 Accounts Receivable, net 42,122,325 17,027,731 59,150,056 Inventories 1,942,302 -- 1,942,302 Prepaid Assets 34,230 -- 34,230 Equity in Pooled Cash and Investments - Restricted 38,351,150 9,597,878 47,949,028 Capital Assets:
Land, Land Improvements and Construction in Progress 336,191,779 194,832,259 531,024,038 Other Capital Assets, Net of Accumulated Depreciation 552,640,619 633,146,977 1,185,787,596
TOTAL ASSETS 1,202,348,955 1,127,798,078 2,330,147,033
DEFERRED OUTFLOW OF RESOURCES Deferred Contributions to OPEB 7,054,585 1,622,359 8,676,944 Deferred Contributions to Pension Plans 14,990,162 1,062,489 16,052,651 Deferred Charge on Debt Refinancings 1,049,717 1,141,926 2,191,643
TOTAL DEFERRED OUTFLOW OF RESOURCES 23,094,464 3,826,774 26,921,238
LIABILITIES Accounts Payable and Accrued Liabilities 23,295,120 7,969,600 31,264,720 Internal Balances 1,304,063 (1,304,063) -- Accrued Bond Interest 577,551 1,411,834 1,989,385 Retainage Payable 939,393 3,376,214 4,315,607 Advance from Customers 171,099 (2,895) 168,204 Unearned Revenues 18,282,528 755,958 19,038,486 Deposits 754,050 2,134,776 2,888,826 Miscellaneous -- 860,620 860,620 Long-term Liabilities:
Portion Due or Payable Within One Year 22,601,487 13,984,906 36,586,393 Portion Due or Payable After One Year 276,120,786 328,381,070 604,501,856
TOTAL LIABILITIES 344,046,077 357,568,020 701,614,097
DEFERRED INFLOWS OF RESOURCES
Prepaid Taxes & Vehicle Tags 64,799 -- 64,799 OPEB Deferrals 11,554,207 2,657,149 14,211,356 Pension Deferrals 774,472 624,007 1,398,479
TOTAL DEFERRED INFLOWS OF RESOURCES 12,393,478 3,281,156 15,674,634
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STATEMENT OF NET POSITION TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF NET POSITION June 30, 2018
EXHIBIT A Business Total Governmental Type Primary
Activities Activities Government NET POSITION
Net Investment in Capital Assets $838,986,743 524,405,493 1,363,392,236 Restricted for: Stabilization by State Statute 20,503,825 -- 20,503,825 Steven's Endowment (Nonspendable) 231,377 -- 231,377 Street Projects 7,838,407 -- 7,838,407 Parks, Recreation and Culture 4,106,122 -- 4,106,122 Public Safety 1,681,769 -- 1,681,769 General Government Projects 6,551 -- 6,551 Oasis Program -- 31,321 31,321 Unrestricted (4,350,930) 246,338,862 241,987,932
TOTAL NET POSITION $869,003,864 770,775,676 1,639,779,540
The accompanying notes are an integral part of these basic financial statements.
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF ACTIVITIES For the Year Ended June 30, 2018
EXHIBIT B
Program Revenues Operating Capital Primary Government
Charges for Grants and Grants and Governmental Business-type FUNCTIONS / PROGRAMS: Expenses Services Contributions Contributions Activities Activities Total Primary Government:
Governmental Activities: General Government $28,956,230 1,381,774 113,982 (5,756) (27,466,230) -- (27,466,230) Public Safety 51,561,522 450,928 1,547,030 -- (49,563,564) -- (49,563,564) Public Works 31,996,047 10,204,188 118,407 -- (21,673,452) -- (21,673,452) Parks, Recreation and Culture 20,836,664 12,249,099 754,136 7,853,804 20,375 -- 20,375 Development 11,430,564 5,275,593 1,079,250 -- (5,075,721) -- (5,075,721) Infrastructure 53,800,825 5,765,749 3,356,586 50,505,616 5,827,126 -- 5,827,126 Interest Expense & Debt Service Fees 3,914,795 -- -- -- (3,914,795) -- (3,914,795)
TOTAL GOVERNMENTAL ACTIVITIES 202,496,647 35,327,331 6,969,391 58,353,664 (101,846,261) -- (101,846,261)
Business-type Activities: Utility 74,346,492 93,554,711 -- 8,814,674 -- 28,022,893 28,022,893
TOTAL BUSINESS-TYPE ACTIVITIES 74,346,492 93,554,711 -- 8,814,674 -- 28,022,893 28,022,893
Total Primary Government $276,843,139 128,882,042 6,969,391 67,168,338 (101,846,261) 28,022,893 (73,823,368)
General revenues: Ad Valorem Taxes 92,315,794 -- 92,315,794 Sales Tax 33,772,686 -- 33,772,686 Occupancy Tax 1,267,356 -- 1,267,356 ABC Revenue 969,988 -- 969,988 Other Taxes & Licenses 837,004 -- 837,004 Unrestricted Intergovernmental 11,366,443 -- 11,366,443 Investment Earnings 1,217,658 1,387,496 2,605,154 Gain on Sale of Capital Assets 239,691 -- 239,691 Miscellaneous Revenue 104,977 224,770 329,747
Total General Revenues 142,091,597 1,612,266 143,703,863
CHANGE IN NET POSITION 40,245,336 29,635,159 69,880,495
NET POSITION - Beginning of Year 885,209,779 756,300,110 1,641,509,889 Prior Period Adjustments (56,451,251) (15,159,593) (71,610,844)
NET POSITION - Beginning of Year, restated 828,758,528 741,140,517 1,569,899,045
NET POSITION - End of Year $869,003,864 770,775,676 1,639,779,540
The accompanying notes are an integral part of these basic financial statements.
Net (Expense) Revenue and Changes in Net Position
STATEMENT OF ACTIVITIES TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
GOVERNMENTAL FUNDS
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GOVERNMENTAL FUNDS FINANCIAL STATEMENTS
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BALANCE SHEET – GOVERNMENTAL FUNDS TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2018
EXHIBIT C Emergency Economic Capital Transit Telephone CDBG Development Total
General Projects Special System Special Special Special Governmental Fund Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Funds
ASSETS
UNRESTRICTED ASSETS Equity in Pooled Cash and Investments $77,012,796 135,962,972 1,069,230 -- 59,884 460,213 214,565,095 Accrued Interest on Investments 338,235 503,979 -- -- -- -- 842,214 Ad Valorem Taxes Receivable, net of allowance for doubtful accounts 132,071 -- -- -- -- -- 132,071 Accounts Receivable, net of allowance for doubtful accounts 15,997,516 1,526,169 876,674 57,756 -- -- 18,458,115 Due from Special Revenue Funds 150,000 -- -- -- -- -- 150,000 Inventories 1,870,803 -- -- -- -- -- 1,870,803 Other Assets 34,230 -- -- -- -- -- 34,230 TOTAL UNRESTRICTED ASSETS 95,535,651 137,993,120 1,945,904 57,756 59,884 460,213 236,052,528
RESTRICTED ASSETS Equity in Pooled Cash and Investments
Unspent Debt Proceeds -- 18,171,294 -- -- -- -- 18,171,294 Unspent Restricted Grants & Intergovernmental 1,267,490 11,194,989 -- 376,646 -- -- 12,839,125 Customer Deposits & Other Funds Held 5,555,209 1,776,522 -- -- -- -- 7,331,731
TOTAL RESTRICTED ASSETS 6,822,699 31,142,805 -- 376,646 -- -- 38,342,150
TOTAL ASSETS 102,358,350 169,135,925 1,945,904 434,402 59,884 460,213 274,394,678
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts Payable 12,576,731 9,744,279 722,118 85 26,704 -- 23,069,917 Retainage Payable 4,110 935,283 -- -- -- -- 939,393 Self Insurance Payable 277,578 -- -- -- -- -- 277,578 Advance from Customers 152,564 18,535 -- -- -- -- 171,099 Deposits 745,052 -- -- -- -- -- 745,052 Due to General Fund -- -- -- -- 150,000 -- 150,000 TOTAL LIABILITIES 13,756,035 10,698,097 722,118 85 176,704 -- 25,353,039
DEFERRED INFLOWS OF RESOURCES Property Taxes Receivable & Prepaid 174,497 -- -- -- -- -- 174,497 Vehicle Tags Receivable & Prepaid -- 166,055 83,028 -- -- -- 249,083 TOTAL DEFERRED INFLOWS OF RESOURCES 174,497 166,055 83,028 -- -- -- 423,580
Major Funds Non-Major Funds Reported as Major
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TOWN OF CARY, NORTH CAROLINA BALANCE SHEET GOVERNMENTAL FUNDS June 30, 2018
EXHIBIT C Emergency Economic Capital Transit Telephone CDBG Development Total
General Projects Special System Special Special Special Governmental Fund Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Funds
Major Funds Non-Major Funds Reported as Major
FUND BALANCES
Nonspendable: Inventories $1,870,803 -- -- -- -- -- 1,870,803 Prepayments 34,230 -- -- -- -- -- 34,230 Steven's Estate Endowment 231,377 -- -- -- -- -- 231,377
Restricted: Stabilization by State Statute 18,860,801 769,556 815,712 57,756 -- -- 20,503,825 Street Projects -- 23,174,066 -- -- -- -- 23,174,066 Parks, Recreation and Culture 62,821 6,423,084 -- -- -- -- 6,485,905 Fire Projects & Activities 8,924 455,852 -- -- -- -- 464,776 Police Operations & Activities 1,296,284 -- -- 376,561 -- -- 1,672,845 General Governmental Projects -- 6,551 -- -- -- -- 6,551
Committed: Street Projects -- 53,720,689 -- -- -- -- 53,720,689 Downtown Projects -- 17,683,996 -- -- -- -- 17,683,996 Parks, Recreation and Culture 69,426 30,971,845 -- -- -- -- 31,041,271 Fire Projects -- 1,776,974 -- -- -- -- 1,776,974 Police Operations & Activities (LEOSSA) 2,560,678 -- -- -- -- -- 2,560,678 General Governmental Projects -- 14,163,517 -- -- -- -- 14,163,517 Governmental Capital Projects -- 9,125,643 -- -- -- -- 9,125,643 Transit -- -- 325,046 -- -- -- 325,046 Economic Development -- -- -- -- -- 460,213 460,213
Assigned: Subsequent Year Appropriations 8,809,880 -- -- -- -- -- 8,809,880 Affordable Housing 546,775 -- -- -- -- -- 546,775 Worker's Compensation Self Insurance 1,811,168 -- -- -- -- -- 1,811,168 Small Claims Self Insurance 2,354,250 -- -- -- -- -- 2,354,250 Parks, Recreation and Culture 303,664 -- -- -- -- -- 303,664
Fund Balance Unassigned 49,606,737 -- -- -- (116,820) -- 49,489,917
TOTAL FUND BALANCES 88,427,818 158,271,773 1,140,758 434,317 (116,820) 460,213 248,618,059
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $102,358,350 169,135,925 1,945,904 434,402 59,884 460,213 274,394,678
The accompanying notes are an integral part of these basic financial statements.
BALANCE SHEET – GOVERNMENTAL FUNDS TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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RECONCILIATION OF THE BALANCE SHEET OF THE GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION June 30, 2018
EXHIBIT D
Amounts reported for governmental activities in the statement of net position are different because:
Governmental Funds
Internal Service Funds Total
ENDING FUND BALANCE - GOVERNMENTAL FUNDS $248,618,059 -- 248,618,059
887,714,013 1,118,385 888,832,398
5,169,768 211,914 5,381,682
-- 15,607,658 15,607,658
472,166 -- 472,166
-- (495,685) (495,685)
(755,990) (9,000) (764,990)
(296,207,917) (2,514,356) (298,722,273)
14,059,110 156,580 14,215,690
(4,443,597) (56,025) (4,499,622)
358,781 -- 358,781
NET POSITION OF GOVERNMENTAL ACTIVITIES $854,984,393 14,019,471 869,003,864
The accompanying notes are an integral part of these basic financial statements.
Internal service fund current assets (cash and inventory) included as governmental activities. Current internal service fund receivables are included in number above.
Long-term receivables (net of related unearned revenues) are not available to pay for current-period expenditures and are not included in the funds. This also includes internal service fund current receivables that have been added to governmental activities.
Non-current accrued bond interest and deferred outflows (deferred charge on debt refinancing) are not available or due in the current period and, therefore, are not reported in the funds. This is a net amount.
Certain non-current liabilities are not due in the current period and, therefore, not reported in the funds. This also includes an internal balance (liability) related to internal service funds, miscellaneous adjustments for short-term liabilities that are included with long-term liabilities for readability and reporting purposes, as well as an internal service fund deposit.
Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds.
Internal service fund current liabilities included as governmental activities (accounts payable and other accrued liabilities).
Pension activity relating to deferred outflows and deferred inflows is not used or reported in the funds.
Deferred inflows of resources related to property tax and vehicle tag fees that are not available to pay for current period expenditures and are not included in the funds.
Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds.
OPEB activity relating to deferred outflows and deferred inflows in not used or reported in the funds
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STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Year Ended June 30, 2018
EXHIBIT E Emergency Economic
Capital Transit Telephone CDBG Development Total General Projects Special System Special Special Special Governmental
Fund Fund Revenue Fund Revenue Fund Revenue Fund Revenue Fund Funds REVENUES
Ad Valorem Taxes $92,316,526 -- -- -- -- -- 92,316,526 Other Taxes and Licenses 36,141,693 -- 705,341 693,077 -- -- 37,540,111 Unrestricted Intergovernmental 10,763,146 603,297 -- -- -- -- 11,366,443 Restricted Intergovernmental 1,108,817 11,968,731 1,730,800 -- 918,429 21,000 15,747,777 Permits and Fees 5,504,544 10,196,238 706,238 -- -- -- 16,407,020 Sales and Services 18,776,152 -- 458,703 -- -- -- 19,234,855 Investment Earnings, net of market adjustment 594,962 730,404 -- 3,036 110 -- 1,328,512 Miscellaneous 1,525,896 648,681 -- -- -- -- 2,174,577 TOTAL REVENUES 166,731,736 24,147,351 3,601,082 696,113 918,539 21,000 196,115,821
EXPENDITURES Current:
General Government, net 25,249,241 10,079,203 -- -- -- 757,987 36,086,431 Public Safety, net 47,371,838 1,131,577 -- 451,407 -- -- 48,954,822 Public Works, net 30,589,874 -- -- -- -- -- 30,589,874 Parks, Recreation and Culture 16,829,819 12,293,275 -- -- -- -- 29,123,094 Development 8,516,410 -- -- -- 1,036,599 -- 9,553,009 Infrastructure 8,127,184 25,719,520 4,952,386 -- -- -- 38,799,090
Debt service: Principal 12,423,432 -- -- -- -- -- 12,423,432 Interest 3,889,883 -- -- -- -- -- 3,889,883 Bond Service Charges 470,809 -- -- -- -- -- 470,809 Reimbursement for Open Space (822,264) -- -- -- -- -- (822,264)
TOTAL EXPENDITURES 152,646,226 49,223,575 4,952,386 451,407 1,036,599 757,987 209,068,180
REVENUES OVER (UNDER) EXPENDITURES 14,085,510 (25,076,224) (1,351,304) 244,706 (118,060) (736,987) (12,952,359)
OTHER FINANCING SOURCES (USES) Transfers In 49,000 24,451,401 1,778,434 -- -- 844,000 27,122,835 Transfers Out (28,504,995) -- (49,000) -- -- -- (28,553,995) Sale of Assets & Material 296,798 -- -- -- -- -- 296,798 Capital Lease Obligations Issued 850,457 -- -- -- -- -- 850,457 General Obligation Bonds Issued 17,042,667 31,035,000 -- -- -- -- 48,077,667 Premium Received on General Obligation Bonds 207,237 2,348,062 -- -- -- -- 2,555,299 Payment to Escrow for Defeasance of Debt (16,949,494) -- -- -- -- -- (16,949,494) TOTAL OTHER FINANCING SOURCES (USES) (27,008,330) 57,834,463 1,729,434 -- -- 844,000 33,399,567
NET CHANGE IN FUND BALANCE (12,922,820) 32,758,239 378,130 244,706 (118,060) 107,013 20,447,208
FUND BALANCE - Beginning of Year 101,350,638 125,513,534 762,628 189,611 1,240 353,200 228,170,851
FUND BALANCE - End of Year $88,427,818 158,271,773 1,140,758 434,317 (116,820) 460,213 248,618,059
The accompanying notes are an integral part of these basic financial statements.
Major Funds Non-Major Funds Reported as Major
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RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For the Year Ended June 30, 2018
EXHIBIT F
Amounts reported for governmental activities in the Statement of Activities are different because:
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS $20,447,208
24,547,105
(28,385,300)
44,423,513
1,904,454
12,423,432
(34,533,929)
Other Post Employment Benefits expense adjustment (6,314,872) Local Government Employee Retirement System expense adjustment (185,095) Law Enforcement Separation Allowance expense adjustment (436,688)
315,073
445,897
5,594,540
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $40,245,336
The accompanying notes are an integral part of these basic financial statements.
As stated above, in the Statement of Activities the cost of assets is allocated over their estimated useful lives and reported as depreciation expense. This amount does not include depreciation related to the internal service funds of approximately $112,000 (see separate item below for combined internal service fund activity).
Contracts for long-term capital lease obligations and net activity related to GO Bond refinancing are included as current financial resources in the Governmental Funds, but should be removed since they are included as a long-term liability on the Statement of Net Position.
The repayment of the principal of long-term debt consumes the current financial resources of Governmental Funds, but does not have an effect on the Statement of Activities and should be added back.
Donated general infrastructure and other capital contributions related to developer agreements do not affect the Governmental Funds, but should be included as a revenue on the Statement of Activities.
Governmental funds report capital outlays and construction in progress as expenditures. In the Statement of Activities the cost of those assets is allocated over their estimated useful lives (through depreciation, see below) and should be added back.
The remaining net expense of activities in the internal service funds for fleet and health insurance services, not included above, that relate to governmental activities (based on participation) are not reported in the Governmental Funds, but need to be included in the Statement of Activities. This includes a transfer to the health insurance internal service fund for $1.3 million related to future catastrophic losses.
Certain revenues are not included in the Governmental Funds since they do not provide current financial resources. These need to be recognized and included in the Statement of Activities.
Debt interest expense and annual amortization of the deferred charge on debt refinancings (deferred outflow) are not reported in the Governmental Funds, but need to be included on the Statement of Activities.
Certain other operational expense adjustments are not related to expenditures in the Governmental Funds, but should be included in the Statement of Activities. This includes payments on capital leases and long-term committments that are not considered expenses on the Statement of Activities.
A portion of expense activity related to the Local Government Employee Retirement System and other post employment benefits (not including fleet internal service fund portion), as well as all of the Law Enforcement Separation Allowance retirement expense are not reported in the Governmental funds and should be included in the Statement of Activities:
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual REVENUES
Ad Valorem Taxes Current Year $ 90,766,060 90,766,060 91,851,308 1,085,248 89,328,983 Prior Years 150,000 150,000 400,272 250,272 582,287 Penalties and Interest 65,000 65,000 64,946 (54) 62,217 TOTAL 90,981,060 90,981,060 92,316,526 1,335,466 89,973,487
Other Taxes and Licenses ABC Revenue 960,953 960,953 977,114 16,161 915,344 Wake County Sales Tax 15,326,401 15,326,401 15,223,210 (103,191) 14,678,520 One Half Cent Sales Tax 18,295,215 18,295,215 18,549,476 254,261 17,556,298 Occupancy Tax 1,300,000 1,300,000 1,267,356 (32,644) 1,198,422 Animal Licenses 7,739 7,739 7,680 (59) 9,190 Rental Vehicle Tax 110,000 110,000 116,857 6,857 130,383 TOTAL 36,000,308 36,000,308 36,141,693 141,385 34,488,157
Unrestricted Intergovernmental Utility and Piped Natural Gas Sales Tax 9,943,328 9,943,328 10,091,457 148,129 9,931,205 Wine and Beer Tax 690,814 690,814 671,689 (19,125) 690,814 TOTAL 10,634,142 10,634,142 10,763,146 129,004 10,622,019
Restricted Intergovernmental Federal Grants -- -- 739,609 739,609 335,016 State Grants -- -- 57,011 57,011 65,784 County Grants and Other Restricted Funding 276,769 276,769 312,197 35,428 265,194 TOTAL 276,769 276,769 1,108,817 832,048 665,994
Permits and Fees Building Permits 2,691,453 2,691,453 3,446,718 755,265 3,307,935 Rezoning/Variance Request Fees 40,125 40,125 37,100 (3,025) 50,575 Site/Final Plan Review Fees 275,000 275,000 269,375 (5,625) 340,014 Inspection Fees 492,152 492,152 500,601 8,449 462,206 Traffic Impact Analysis Fee 225,000 225,000 228,950 3,950 289,608 Grading Permits 230,000 230,000 192,148 (37,852) 197,424 Miscellaneous Permits and Fees 425,986 425,986 829,652 403,666 773,307 TOTAL 4,379,716 4,379,716 5,504,544 1,124,828 5,421,069
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual Sales and Services
Sanitation Fees $ 9,375,133 9,375,133 9,341,552 (33,581) 9,214,096 Rental Revenue 92,201 92,201 104,985 12,784 120,604 Cellular Tower Lease Proceeds 804,000 804,000 877,467 73,467 880,888 Community Rec Misc Program Revenues 25,500 25,500 36,784 11,284 34,512
Sports Program Revenues 528,000 528,000 552,054 24,054 564,200 Senior Program Revenues 198,300 198,300 219,034 20,734 191,199 Community Center Program Revenues 1,489,000 1,489,000 1,558,131 69,131 1,476,760 Outdoor Recreation Program Revenues 186,000 186,000 263,715 77,715 251,585 Environmental (Steven's Nature) Program Revenues 39,800 39,800 34,144 (5,656) 36,298 Cary Art Center Program Revenues 774,500 774,500 890,182 115,682 815,431 The Cary Theater Program Revenues 108,500 108,500 159,851 51,351 132,412 Downtown Events Program Revenues 19,000 19,000 20,121 1,121 16,472 Festival and Outdoor Program Revenues 176,000 176,000 162,539 (13,461) 169,145 Historic (Page-Walker) Program Revenues 117,000 117,000 135,194 18,194 133,198
Sports Venue Misc Program Revenues 378,933 378,933 330,226 (48,707) 173,581 Tennis Park Revenues 1,880,383 1,880,383 2,083,152 202,769 1,816,059 Skate Park Revenues 131,600 131,600 112,200 (19,400) 110,904 Soccer Park Revenues 699,826 699,826 747,993 48,167 706,512 USA Baseball Revenues 608,870 608,870 703,333 94,463 609,240
Misc Parks and Rec Program Revenues 56,500 56,500 65,612 9,112 70,349 Miscellaneous Sales and Services 275,000 275,000 377,883 102,883 409,112
TOTAL 17,964,046 17,964,046 18,776,152 812,106 17,932,557
Investment Earnings, net of Market Adjustment 1,144,440 1,144,440 594,962 (549,478) 309,067 Investment Earnings, net 1,144,440 1,144,440 594,962 (549,478) 309,067
Miscellaneous Donations 187,000 187,000 89,673 (97,327) 39,757 Wake County Reimbursement 604,100 604,100 521,023 (83,077) 617,973 NCDOT Traffic Signal Reimbursement 462,390 462,390 511,636 49,246 844,410 Miscellaneous Revenues 350,989 350,989 403,564 52,575 820,758
TOTAL 1,604,479 1,604,479 1,525,896 (78,583) 2,322,898
TOTAL REVENUES 162,984,960 162,984,960 166,731,736 3,746,776 161,735,248
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual EXPENDITURES
GENERAL GOVERNMENT Legislative (4110) $ 813,356 815,419 760,173 55,246 707,184 Town Clerk (4130) 684,121 668,547 466,068 202,479 264,992 Legal (4140) 1,370,401 1,378,561 1,160,011 218,550 976,352 Town Manager (4200,4250) 2,858,783 4,036,782 3,273,550 763,232 1,915,072 Public Information (4220) 1,363,794 1,414,458 1,086,211 328,247 1,014,321 Technology Services (4500) 11,403,974 12,429,902 10,750,181 1,679,721 8,408,378 Capital Lease Purchases (4520) 1,300,000 1,300,000 850,457 449,543 1,178,759 Accounting (4410) 3,477,325 3,488,981 3,233,905 255,076 2,852,621 Purchasing (4420) 987,810 1,017,396 963,295 54,101 1,000,340 Budget (4450) 665,842 565,474 453,875 111,599 621,448 Human Resources (4600) 2,011,036 1,986,381 1,790,944 195,437 1,732,892 Town-Wide Expenses (4610) 1,958,566 2,059,566 2,059,241 325 725,283 Workers' Compensation 1,646,816 1,646,816 1,935,496 (288,680) 1,727,220 Small Claims 1,888,904 1,252,621 265,178 987,443 249,883 Reimbursement -- -- -- -- (7,218) Contingencies 90,000 90,000 169 89,831 -- Reimbursement from Fleet Management Internal Service Fund (263,504) (263,504) (263,504) -- (267,454) Reimbursement from Utility System Enterprise Fund (3,536,009) (3,536,009) (3,536,009) -- (3,548,625)
TOTAL GENERAL GOVERNMENT, net 28,721,215 30,351,391 25,249,241 5,102,150 19,551,448
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual
PUBLIC SAFETY Police (5110, 5120) $ 25,973,588 26,083,196 24,942,888 1,140,308 23,766,248 Fire (5300) 22,954,982 22,878,103 21,912,349 965,754 21,744,753 Law Enforcement Separation Allowance Benefit 1,230,341 1,230,341 552,114 678,227 495,206 Reimbursement from Parks, Recreation & Culture (35,410) (35,410) (35,513) 103 (37,784)
TOTAL PUBLIC SAFETY, net 50,123,501 50,156,230 47,371,838 2,784,392 45,968,423
OPERATIONS Public Works
Public Works Administration (7010) 1,441,093 1,434,234 1,366,582 67,652 1,300,668 Facilities (7015) 18,994,017 19,062,945 18,870,141 192,804 17,439,513 Field Operations (7020) 16,382,192 16,290,877 14,178,876 2,112,001 14,952,967 Solid Waste Management (7025) 5,227,238 5,245,605 5,063,059 182,546 4,892,610 Recycling (7026) 2,144,237 2,173,581 2,011,377 162,204 1,704,463 Yard Waste Division (7027) 3,034,163 3,031,283 2,505,879 525,404 2,368,541 Reimbursement (784,132) (784,132) (750,934) (33,198) (699,521) Reimbursement from Other Parks, Recreation & Culture (2,969,418) (3,022,827) (2,201,871) (820,956) (2,262,382) Reimbursement from Utility System Enterprise Fund (11,571,010) (11,571,010) (10,453,235) (1,117,775) (9,975,834)
Total Public Works, net 31,898,380 31,860,556 30,589,874 1,270,682 29,721,025
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual Parks, Recreation & Cultural Arts
Administration (6210) $ 2,312,597 1,981,557 1,921,578 59,979 1,618,274
Community Recreation Community Recreation (6250) 507,191 448,116 431,265 16,851 400,004 Sports Programs (6251) 1,589,005 1,447,665 1,360,707 86,958 1,274,115 Senior Programs (6252) 626,121 600,352 589,133 11,219 532,627 Community Centers (6253) 2,444,994 2,270,579 1,959,572 311,007 1,858,385 Outdoor Recreation Program (6254) 611,561 557,917 426,563 131,354 430,033 Environmental Program (6255) 426,614 392,975 316,336 76,639 285,651
Total Community Recreation 6,205,486 5,717,604 5,083,576 634,028 4,780,815
Cultural Arts & Downtown Cultural Arts Administration (6355) 1,270,145 1,326,731 1,206,479 120,252 1,131,394 Cary Arts Center (6350) 2,090,084 1,999,462 1,853,841 145,621 1,771,932 The Cary Theatre (6351) 668,873 645,660 623,814 21,846 558,067 Special Downtown Events (6352) 238,465 233,465 109,736 123,729 126,722 Festivals and Outdoor (6353) 223,422 232,922 188,591 44,331 177,976 Historic Programs (6354) 364,408 366,284 351,544 14,740 333,944 Regency Amphitheatre (6356) 898,546 803,818 410,073 393,745 778,510
Total Cultural Arts & Downtown 5,753,943 5,608,342 4,744,078 864,264 4,878,545
Sports Venue Sports Venue Administration (6305) 479,808 475,352 467,117 8,235 443,159 Tennis Park (6310) 2,218,840 2,420,279 2,309,926 110,353 2,140,424 Skate Park (6320) 307,401 300,240 247,096 53,144 243,626 Soccer Park (6330) 1,441,870 1,415,677 1,144,031 271,646 1,180,853 USA Baseball (6340) 1,311,362 1,232,458 912,417 320,041 707,441
Total Sports Venue 5,759,281 5,844,006 5,080,587 763,419 4,715,503
Total Parks, Recreation & Cultural Arts 20,031,307 19,151,509 16,829,819 2,321,690 15,993,137
TOTAL OPERATIONS, net 51,929,687 51,012,065 47,419,693 3,592,372 45,714,162
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual
DEVELOPMENT AND INFRASTRUCTURE Development
Planning (5505) $ 2,735,554 2,832,609 2,510,098 322,511 2,512,972 Affordable Housing (5507) 184,509 185,069 182,125 2,944 174,897 Inspections and Permits (5510) 4,712,834 4,708,182 4,409,893 298,289 4,333,116 Development Support Services (5515) 1,401,925 1,418,919 1,414,294 4,625 1,129,809
Total Development 9,034,822 9,144,779 8,516,410 628,369 8,150,794 Infrastructure
Facility Design (3600) 6,383,055 6,321,523 5,166,699 1,154,824 5,629,614 Water Resources (3500) 2,925,711 2,963,122 2,799,131 163,991 2,656,903 Sustainability (3610) 194,811 219,811 161,354 58,457 --
Total Infrastructure 9,503,577 9,504,456 8,127,184 1,377,272 8,286,517
TOTAL DEVELOPMENT AND INFRASTRUCTURE 18,538,399 18,649,235 16,643,594 2,005,641 16,437,311
DEBT SERVICE Principal 12,658,696 12,658,696 12,423,432 235,264 11,175,613 Interest 3,964,968 3,964,968 3,889,883 75,085 3,312,564 Bond Service Charges 746,700 746,700 470,809 275,891 184,862 Reimbursement for Open Space (822,264) (822,264) (822,264) -- (862,663)
TOTAL DEBT SERVICE, net 16,548,100 16,548,100 15,961,860 586,240 13,810,376
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GENERAL FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA GENERAL FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT G 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual
TOTAL EXPENDITURES, net $ 165,860,902 166,717,021 152,646,226 14,070,795 141,481,720
Revenue Over Expenditures (2,875,942) (3,732,061) 14,085,510 17,817,571 20,253,528
OTHER FINANCING SOURCES (USES) Transfers In (Out), net:
Transit Special Revenue Fund (1,778,434) (1,729,434) (1,729,434) -- (829,545) Economic Development Fund (825,000) (844,000) (844,000) -- (383,522) Internal Service Fund - Fleet -- (88,782) (88,782) -- -- Internal Service Fund - Health & Dental (1,342,378) (1,342,378) (1,342,378) -- (1,000,000) Capital Reserve Sub-Fund -- (184,000) (184,000) -- -- Streets Capital Project Sub-Fund (4,500,000) (4,570,000) (4,570,000) -- (6,944,500) Downtown Capital Project Sub-Fund -- (7,000,000) (7,000,000) -- (5,780,000) General Government Capital Project Sub-Fund (7,126,350) (7,726,350) (7,726,350) -- (1,974,800) Fire Capital Project Sub-Fund -- -- -- -- (938,000) Parks and Recreation Capital Project Sub-Fund (3,229,201) (4,971,051) (4,971,051) -- (5,286,289)
Proceeds from Sale of Assets 300,000 300,000 296,798 (3,202) 309,959 Capital Lease Proceeds 1,300,000 1,300,000 850,457 (449,543) 1,178,759 General Obligation Bonds Issued 500,000 17,449,494 17,042,667 (406,827) -- Premium Received on General Obligation Bonds -- -- 207,237 207,237 -- Payment to Escrow -- (16,949,494) (16,949,494) -- -- Appropriation from Fund Balance 19,577,305 30,088,056 -- (30,088,056) --
TOTAL OTHER FINANCING USES, net 2,875,942 3,732,061 (27,008,330) (30,740,391) (21,647,938)
Revenues and Other Sources (Under) Expenditures and Other Uses $ -- -- (12,922,820) (12,922,820) (1,394,410)
FUND BALANCE - Beginning of Year 101,350,638 102,745,048
FUND BALANCE - End of Year $ 88,427,818 $ 101,350,638
The accompanying notes are an integral part of these basic financial statements
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TRANSIT SPECIAL REVENUE FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA TRANSIT SPECIAL REVENUE FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT H 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual
REVENUES
Federal Transit Administration Grant $ 1,675,991 1,675,991 1,513,313 (162,678) 979,498 State Maintenance Assistance Program Grant 290,709 290,709 217,487 (73,222) 310,146 Wake County Transit Tax 1,415,706 1,415,706 705,341 (710,365) -- Vehicle License Fee 650,000 650,000 706,238 56,238 647,798 C-Tran Ticket Sales 353,510 353,510 458,703 105,193 325,249 Miscellaneous Revenues 44,942 44,942 -- (44,942) --
TOTAL REVENUE 4,430,858 4,430,858 3,601,082 (829,776) 2,262,691
EXPENDITURES
Transit Operations (5700) Personnel Services 484,943 484,943 401,935 83,008 328,651 Operations & Maintenance 5,730,549 5,683,023 4,550,451 1,132,572 3,901,753
TOTAL EXPENDITURES, net 6,215,492 6,167,966 4,952,386 1,215,580 4,230,404
Revenue Over (Under) Expenditures (1,784,634) (1,737,108) (1,351,304) 385,804 (1,967,713)
OTHER FINANCING SOURCES (USES)
Transfers in from General Fund 1,778,434 1,778,434 1,778,434 -- 829,545 Transfers out to General Fund -- (49,000) (49,000) -- -- Appropriation from Fund Balance 6,200 7,674 -- (7,674) --
TOTAL OTHER FINANCING SOURCES (USES) 1,784,634 1,737,108 1,729,434 (7,674) 829,545
Revenues and Other Sources Over (Under) Expenditures $ -- -- 378,130 378,130 (1,138,168)
FUND BALANCE - Beginning of Year 762,628 1,900,796
FUND BALANCE - End of Year $ 1,140,758 $ 762,628
The accompanying notes are an integral part of these basic financial statements.
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EMERGENCY TELEPHONE SYSTEM SPECIAL REVENUE FUND BUDGETARY COMPARISON STATEMENT TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE ACTUAL AMOUNTS FOR THE YEAR ENDED JUNE 30, 2017
TOWN OF CARY, NORTH CAROLINA EMERGENCY TELEPHONE SYSTEM SPECIAL REVENUE FUND BUDGETARY COMPARISON STATEMENT For the Year Ended June 30, 2018 With Comparative Actual Amounts for the Year Ended June 30, 2017
EXHIBIT I 2018 2017
Budget Variance Positive
Original Final Actual (Negative) Actual
REVENUES
911 System Funding $ 693,076 693,076 693,077 1 516,623 Investment Earnings, net of Market Adjustment -- -- 3,036 3,036 801
TOTAL REVENUE 693,076 693,076 696,113 3,037 517,424
EXPENDITURES
Eligible 911 System Operations Personnel Services 204,200 204,200 20,481 183,719 81,283 Operations & Maintenance 446,700 446,700 430,926 15,774 465,451 Capital Outlay 20,000 20,000 -- 20,000 --
TOTAL EXPENDITURES, net 670,900 670,900 451,407 219,493 546,734
Revenue Over (Under) Expenditures 22,176 22,176 244,706 222,530 (29,310)
OTHER FINANCING SOURCES (USES)
Appropriation from Fund Balance (22,176) (22,176) -- 22,176 --
TOTAL OTHER FINANCING SOURCES (USES) (22,176) (22,176) -- 22,176 --
Revenues and Other Sources Over (Under) Expenditures $ -- -- 244,706 244,706 (29,310)
FUND BALANCE - Beginning of Year 189,611 218,921
FUND BALANCE - End of Year $ 434,317 $ 189,611
The accompanying notes are an integral part of these basic financial statements.
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PROPRIETARY FUNDS
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PROPRIETARY FUNDS FINANCIAL STATEMENTS
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STATEMENT OF NET POSITION – PROPRIETARY FUNDS TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2018 Utility Governmental
Systems Activities - EXHIBIT J Enterprise Internal
Fund Service Funds ASSETS Current Assets
Equity in Pooled Cash and Investments $272,219,418 15,526,686 Accrued Interest on Investments 973,815 473 Accounts Receivable, net of allowance for doubtful accounts 17,027,731 211,914 Inventories -- 71,499 Equity in Pooled Cash and Investments-Restricted Unspent Debt Proceeds 7,312,549 -- Customer Deposits & Other Restricted Funds 2,285,329 9,000
TOTAL CURRENT ASSETS 299,818,842 15,819,572
Non-Current Assets Capital Assets
Land, Land Improvements and Construction-in-Progress 194,832,259 -- Other Capital Assets, net of accumulated depreciation 633,146,977 1,118,385
Total Capital Assets, net 827,979,236 1,118,385
TOTAL NON-CURRENT ASSETS, net 827,979,236 1,118,385
TOTAL ASSETS 1,127,798,078 16,937,957
DEFERRED OUTFLOW OF RESOURCES Deferred Contributions to Pension Plans 1,062,489 136,912 Deferred Contributions to OPEB 1,622,359 87,835 Deferred Charge on Debt Refinancings 1,141,926 --
TOTAL DEFERRED OUTFLOW OF RESOURCES 3,826,774 224,747
LIABILITIES AND NET POSITION Current liabilities
Accounts Payable and Accrued Liabilities 7,969,600 495,685 Debt Payable 12,540,381 -- Accrued Debt Interest Payable 1,411,834 -- Retainage Payable 3,376,214 -- Compensated Absences 1,079,025 51,157 Developer Fee Credits 206,000 -- Advance from Customers (2,895) -- Miscellaneous Liabilities 1,020,120 --
TOTAL CURRENT LIABILITIES 27,600,279 546,842
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STATEMENT OF NET POSITION – PROPRIETARY FUNDS TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF NET POSITION PROPRIETARY FUNDS June 30, 2018 Utility Governmental
Systems Activities - EXHIBIT J Enterprise Internal
Fund Service Funds Non-Current liabilities
Debt Payable, net of deferred premium/discount $296,159,765 -- Deposits 2,134,776 9,000 Unearned Revenue 755,958 -- Compensated Absences 302,039 14,320 Developer Fee Credits 2,985,677 -- Claims Incurred But Not Reported -- 760,000 Unfunded Pension Obligation 1,512,517 206,778 Unfunded Other Post-Employment Benefits 27,374,872 1,482,101 Miscellaneous 46,200 --
TOTAL NON-CURRENT LIABILITIES 331,271,804 2,472,199
TOTAL LIABILITIES 358,872,083 3,019,041
DEFERRED INFLOW OF RESOURCES Pension Deferrals 624,007 (19,668) OPEB Deferrals 2,657,149 143,860
TOTAL DEFERRED INFLOWS OF RESOURCES 3,281,156 124,192
NET POSITION Net Investment in Capital Assets 524,405,493 1,118,385 Restricted for Oasis Assistance Program 31,321 -- Unrestricted Net Position 245,034,799 12,901,086
TOTAL NET POSITION 769,471,613 14,019,471
Adjustment for Internal Service Fund Activities 1,304,063
TOTAL NET POSITION - Business-Type Activities $770,775,676
The accompanying notes are an integral part of these basic financial statements.
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STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended June 30, 2018
EXHIBIT K Utility Systems Governmental Enterprise Activities -
Fund Internal Service Funds OPERATING REVENUES
Charges for Services $80,045,254 1,549,156 Health and Dental Premiums -- 20,736,834 Other Operating Revenues 1,991,851 --
TOTAL OPERATING REVENUES 82,037,105 22,285,990
OPERATING EXPENSES
Administrative 10,647,713 -- Field Operations 10,028,912 -- Utility Systems Management 4,170,047 -- Water Reclamation Facilities 9,764,136 -- Cary/Apex Water Treatment Plant 7,008,473 -- Miscellaneous Utility System Projects 3,446,384 -- Fleet Management Expense -- 1,622,588 Insurance Claims & Administrative Fees -- 15,906,574 Depreciation 18,120,833 112,273
TOTAL OPERATING EXPENSES 63,186,498 17,641,435
OPERATING INCOME 18,850,607 4,644,555
NONOPERATING REVENUES (EXPENSES)
Water and Sewer Development Fees 11,517,606 -- Investment Earnings, net of market adjustment 1,387,496 1,398 Reimbursements 93,645 -- Miscellaneous Revenue 388,167 -- Reimbursement to Governmental Activities for Open Space (822,264) -- Interest Expense (9,975,323) -- Bond Service Expense (12,213) -- Debt Issuance Expense (784,680) -- Bond Refunding Loss Amortization (401,085) -- Sale of Capital Assets 95,201 42,553
TOTAL NONOPERATING REVENUE, net 1,486,550 43,951
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STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION PROPRIETARY FUNDS For the Year Ended June 30, 2018
EXHIBIT K Utility Systems Governmental Enterprise Activities -
Fund Internal Service Funds
INCOME BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS $20,337,157 4,688,506
Capital Contributions 8,751,277 -- Transfers In -- 1,431,160
CHANGE IN NET POSITION 29,088,434 6,119,666
Adjustment for Internal Service Activities 546,725
CHANGE IN NET POSITION - Business-Type Activities 29,635,159
NET POSITION - Beginning of Year, Business-Type Activities 756,300,110
Change in Accounting Principle (15,159,593)
NET POSITION - Beginning of Year, Business-Type Activities, restated 741,140,517
TOTAL NET POSITION - End of Year, Business-Type Activities $770,775,676
TOTAL NET POSITION - Beginning of Year, Internal Service Funds 9,131,210
Change in Accounting Principle (1,231,405)
NET POSITION - Beginning of Year, Internal Service Funds, restated 7,899,805
TOTAL NET POSITION - End of Year, Internal Service Funds $14,019,471
The accompanying notes are an integral part of these basic financial statements.
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STATEMENT OF CASH FLOWS PROPRIETARY FUNDS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2018
EXHIBIT L Utility Governmental Systems Activities -
Enterprise Internal Fund Service Funds
OPERATING ACTIVITIES Cash Received from Customers $78,050,636 22,452,062 Cash Paid for Goods and Services (22,000,079) (654,779) Cash Paid To or On Behalf of Employees for Services (19,815,209) (941,715) Cash Paid for Health and Dental Insurance Claims -- (16,353,555) Other Operating Revenues Received 388,167 --
NET CASH PROVIDED BY OPERATING ACTIVITIES 36,623,515 4,502,013
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES Transfers In -- 1,431,160
CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds Received from Sale of Debt, including premium 117,734,236 -- Bond Issuance Costs & Debt Service Fees Paid (796,893) -- Payment to Escrow (116,927,552) -- Principal Payments on Long-term Debt, net of partner reimbursement (12,883,638) -- Interest Paid on Long-term Debt, net of partner reimbursement (11,536,772) -- Reimbursement to General Fund & Capital Project Fund for Open Space (822,264) -- Water & Sewer Development Fees Received 11,302,498 -- Acquisition and Construction of Capital Assets (29,538,068) (211,255) Proceeds Received from Sale of Assets 95,201 42,553
NET CASH PROVIDED BY (USED IN) CAPITAL AND RELATED FINANCING ACTIVITIES (43,373,252) (168,702)
NET CASH PROVIDED BY INVESTING ACTIVITIES Investment Earnings Received, net of Unrealized Loss 1,198,981 2,040
NET INCREASE (DECREASE) IN CASH AND INVESTMENTS (5,550,756) 5,766,511
CASH AND INVESTMENTS AT BEGINNING OF YEAR 287,368,052 9,769,175
CASH AND INVESTMENTS AT END OF YEAR $281,817,296 15,535,686
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STATEMENT OF CASH FLOWS PROPRIETARY FUNDS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS For the Year Ended June 30, 2018
EXHIBIT L Utility Governmental Systems Activities -
Enterprise Internal Fund Service Funds
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES
Operating Income $18,850,607 4,644,555 Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities Depreciation 18,120,833 112,273 Adjustment for LGERS Pension Expense 43,104 2,334 Adjustment for Unfunded Other Post Employment Benefits 1,470,556 79,618 Adjustment for Construction in Progress Write-off 1,085,499 -- Changes in Assets and Liabilities - (Increase) Decrease in Accounts Receivable (3,983,788) 166,071 (Increase) in Inventory -- (26,472) Increase in Accounts Payable and Accrued Liabilities 943,221 218,898 Increase in Compensated Absenses Liability 129,496 10,387 Decrease in Miscellaneous Liability (421,500) (705,651) Increase in Deposits 33,178 -- Decrease in Advance from Customers (35,858) -- Increase in Miscellaneous Revenue 388,167 --
TOTAL ADJUSTMENTS 17,772,908 (142,542)
NET CASH PROVIDED BY OPERATING ACTIVITIES $36,623,515 4,502,013
NONCASH TRANSACTIONS Contributed Capital ($8,751,277) -- Developer Fee Writeoff (5,262) -- Deferred Loss on Refunding Amortization 413,317 -- Refunding Activity 580,201 -- Amortization of Deferred Premium & Discount (1,500,219) -- Effect of change in accounting principal related to OPEB 15,159,593 1,231,405 Net Change in Net Position from Noncash Transactions (5,896,353) (1,231,405)
NET EFFECT OF NONCASH TRANSACTIONS $ -- --
The accompanying notes are an integral part of these basic financial statements.
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NOTES
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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The Town of Cary, North Carolina (the "Town") is located in the central part of the State and at June 30, 2018, has an estimated population of 163,930. The Town is governed by an elected mayor and six-member council. The Town's major operations include police and fire protection, sanitation services, recycling services, parks and recreation, transit, water and sewer systems, planning and general administration services. Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the Town have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The Town's significant accounting policies are described below. The Town has implemented all applicable GASB pronouncements as required and as applicable in previous years. Included herein is a summary of implementations from the last few years. In fiscal year 2014 GASB Statement 67, Financial Reporting for Pension Plans, became effective. Although it did not require implementation by the Town, it did affect the local government retirement system and directly related to the Town’s implementation of GASB Statement 68, Accounting and Financial Reporting for Pensions and GASB Statement 71, Governmental Accounting Standards Board Pension Transition for Contributions Made Subsequent to the Measurement Date, in fiscal year 2015, which resulted in a net pension asset and deferred inflows and outflows within the entity-wide statements for all activities. In fiscal year 2016 several GASB Statements became effective. GASB Statement 72, Fair Value Measurement and Application, required some changes to the deposit Note 3 regarding how investments are valued and presented. This GASB Statement also requires donated capital assets received after June 15, 2015 to be recorded at acquisition value instead of estimated fair value. Since the Town has always recorded donated infrastructure at acquisition value, these latter changes had little effect. GASB Statement 76, The Hierarchy of Generally Accepted Principles for State and Local Governments did not require any reporting changes, but established guidance regarding the authority of statements and other publishing for governments. GASB Statement 79, Certain External Investment Pools and Pool Participants had no effect on the Town due to the restrictions that exist in state statutes. For fiscal year 2017 two GASB Statements became effective that had an impact on the Town. The most significant change was GASB Statement 73, Accounting and Financial Reporting for Pensions and Related Assets That Are Not within the Scope of GASB Statement 68, and Amendments to Certain Provisions of GASB Statements 67 and 68, which had been partially implemented in fiscal year 2016, with the remaining portion implemented in fiscal year 2017. For fiscal year 2016, GASB Statement 73 clarified and changed guidelines for how the Law Enforcement Officers' Special Separation Allowance (LEOSSA) should be reported resulting in the LEOSSA being reported in the general fund, rather than a pension trust fund. For fiscal year 2017, the full LEOSSA pension liability was applied to the beginning net position for the General Fund, resulting in a prior period adjustment. The LEOSSA details will still be managed separately and the remaining fund balance associated with these activities will be classified as committed. GASB Statement 82, Pension Issues, clarifies some lingering issues associated with GASB Statements 67, 68, and 73, including the definition of covered payroll. The following were statements effective during fiscal year 2017, but not applicable to the Town: GASB Statement 74, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans, changes how Other Post Employment Benefits (OPEB) plans are reported and is applicable for units that have their OPEB in a qualifying trust. The Town does not currently have this type of arrangement. GASB Statement 77, Tax Abatement Disclosures, aims to require units to disclose when the government has foregone tax revenue to which the unit is entitled in exchange for an individual or entity's promise to take specific action that contributes to economic development or otherwise benefits the community. The North Carolina Constitution does not allow government units to abate taxes. GASB Statement 78, Pensions Provided through Certain Multiple-Employer Defined Benefit Pension Plans, sets guidance for pensions outside of local or state government that provide benefits to local or state government employees. GASB Statement 79, Certain External Investment Pools and Pool Participants had no effect on the Town due to the restrictions that exist in state statutes. GASB Statement 80, Blending Requirements for Certain Component Units, clarifies when to use the blending method for component units. The Town does have a component unit, the Cary Economic Development Corporation, however, it does not have any assets or liabilities so there is no change to how it is currently presented in the Town's financial statements. Fiscal year 2018 introduced several new GASB pronouncements. GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions closely relates to GASB 74 and applies to the employer part of government units who have Other Post-Employment Benefits (OPEB). GASB 75 clarified and changed guidelines for how OPEB should be reported for fiscal year 2018. The full actuarial determined OPEB liability was applied proportionally to the beginning net position for the General and Utility fund, resulting in a prior period adjustment. GASB Statement 81, Irrevocable Split Interest Agreements applies to governments that are the beneficiary of an agreement such as charitable lead trusts, charitable remainder trusts and life-interests in real estate. At this time, the Town does not have this type of agreement, therefore the standard does not apply. GASB Standard 85, Omnibus 2017, addresses a few inconsistencies that have developed in practice and clarifies previous guidance on a range of subjects. This standard has little impact on the Town
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES and was implemented. GASB Standard 86, Certain Debt Extinguishment Issues clarifies accounting for in-substance defeasance transactions where only assets acquired with only existing resources are placed in an irrevocable trust for the purpose of extinguishing the debt. Historically, the Town uses the refunding proceeds to extinguish the debt, a situation for which this standard does not apply. This standard also includes a few additional disclosures related to extinguished debt that the Town has implemented. Finally, GASB Standard 89, Accounting for Interest Cost Incurred before the End of a Construction Period has been fully implemented in fiscal year 2018. Interest cost before the end of the construction period had previously been accounted for based on GASB Standard 62, which this standard supersedes. Interest cost incurred before the end of the construction period will now be expensed in the period in which the cost is incurred for fiscal year 2018 and going forward. A. REPORTING ENTITY The Town of Cary is a municipal corporation that is governed by an elected mayor and a six-member council. The Town's basic financial statements include all funds over which the Town has accountability. The Cary Economic Development Corporation is the only component unit for the Town and it has no assets, liabilities or other activity to be recorded. It was created in 2002 as a mechanism for the Town to issue certificates of participation (COP’s) and Limited Obligation Bonds (LOB’s). It will remain in existence until all related debt is fully paid and can be used for future COP or LOB issuances. B. ENTITY-WIDE AND FUND FINANCIAL STATEMENTS The entity-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information for all of the activities of the Town. Eliminations have been made to minimize the double reporting of internal activities. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on customer demand-based fees and charges for support. The Statement of Activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. 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 or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not included among program revenues are reported instead as general revenues. The accounts of the Town are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts comprised of assets, liabilities, fund equity, revenues, and expenditures or expenses, as applicable. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with financial, legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements. Funds are defined as major or non-major in the basic financial statements according to GASB reporting standards, which categorize funds based on relative size and materiality. Proprietary fund operating revenues, such as charges for services, result from exchange transactions associated with the principal activity of the fund. Exchange transactions are those in which each party receives and gives up essentially equal values. Non-operating revenues, such as investment earnings, result from non-exchange transactions or ancillary activities. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. The Town has several non-major governmental funds; however, they are all reported as major funds in separate columns in the fund financial statements. There are no non-major business-type funds. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION In accordance with North Carolina General Statutes, all funds of the Town are maintained during the year using the modified accrual basis of accounting. The entity-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Non-exchange transactions,
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (Continued) in which the Town gives (or receives) value without directly receiving (or giving) equal value in exchange, include property taxes, grants and donations. Property taxes are recorded on an accrual basis and 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. 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 measurable and available. Revenues are considered to be 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 considers revenues to be available if they are collected within 90 days of the end of the current fiscal period, except for property taxes. Expenditures are generally recorded when a liability is incurred, which is the same as accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds from general long-term debt and acquisitions under capital leases are reported as other financing sources. Ad valorem taxes receivable are not accrued as revenue because the amount is not susceptible to accrual. At June 30, taxes receivable for property other than motor vehicles are materially past due and are not considered to be an available resource to finance the operations of the current year. Also, as of September 1, 2013, State law altered the procedures for the assessment and collection of property taxes on registered motor vehicles in North Carolina. Effective with this change in the law, the State of North Carolina is responsible for billing and collecting the property taxes on registered motor vehicles on behalf of all municipalities and special tax districts. Property taxes are due when vehicles are registered. The billed taxes are applicable to the fiscal year in which the bills are paid. Sales taxes and certain intergovernmental revenues that are collected and held by the State at year-end on behalf of the Town are recognized as revenue. Sales taxes are considered a shared revenue for the Town because the tax is levied by Wake and Chatham Counties and then remitted to and distributed by the State. Intergovernmental revenues and sales and services are not subject to full accrual because they are generally not measurable until received in cash. Grant revenues, which are unearned at year-end, are recorded as unearned revenues. Under the terms of the grant agreements, the Town funds certain programs in combination of specific cost-reimbursement grants, categorical block grants and general revenues. Thus, when program expenses are incurred, there are both restricted and unrestricted net position available to finance the program. Excluding debt funding, it is the Town’s policy to first apply cost-reimbursement grant resources to such programs, followed by categorical block grants and then by general revenues. In the event that debt proceeds are included, the Town will spend debt proceeds first unless there is an agreement tying specific expenditures to grant proceeds. When both restricted and unrestricted resources are available for use, it is the Town’s policy to use restricted resources first, then unrestricted resources, as they are needed. The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. The Town reports the following major governmental funds: General Fund - The General Fund is the general operating fund of the Town. It is used to account for all financial resources except those required to be accounted for in another fund. The primary revenue sources are ad valorem taxes, various other taxes and licenses and state-shared revenues. The primary expenditures are for public safety, streets and highways, infrastructure planning, sanitation, recycling, parks and recreation, development activities, general government services, and debt service for the payment of general long- term principal, interest and related costs. It also includes all activities related to the Law Enforcement Officers Separation Allowance. Capital Projects Fund - The Capital Projects Fund is used to account for financial resources to be used for the acquisition and/or construction of major capital facilities (other than those financed by proprietary funds) and infrastructure. The Town has six sub-funds within the Capital Projects Fund: Street Projects, Parks and Recreation Projects, Fire Projects, General Governmental Projects, Downtown Projects, and General Capital Reserve.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION (Continued) Special Revenue Funds – The Town operated four special revenue funds during fiscal year 2018. The Transit Special Revenue Fund is used to account for the operations of GoCary, the Town’s transit system, which is partially funded by federal and state grants, and Wake County sales tax. The Emergency Telephone System Special Revenue Fund is used to account for all allowable 911 expenditures reimbursable by the State from telecommunication fees remitted by providers. The Community Development Block Grant (CDBG) Special Revenue Fund is used to account for activity related to the CDBG Federal entitlement grant received from the Department of Housing and Urban Development. The Economic Development Special Revenue Fund is used to account for special economic related activities in the Town and may be partially funded by grant activity. All funds are annually budgeted, except the CDBG and Economic Development Special Revenue Funds, which have multi-year budgets. To provide better transparency, the Town has voluntarily chosen to report all these funds as major in the basic financial statements. The Town reports the following major enterprise fund: Utility System - An enterprise fund is used to account for operations and maintenance of the utility system which includes three wastewater treatment facilities, the jointly owned Cary/Apex Water Treatment Plant and related infrastructure and the newly opened jointly owned Western Wake Regional Water Reclamation Facility and related infrastructure. This fund also covers acquisition and/or construction of other major utility capital facilities and infrastructure, as well as the debt service for the payment of utility long-term debt principal, interest and related costs. The fund is comprised of four sub-funds: Utility System Operations, Water Projects, Sewer Projects and Utility Capital Reserve. This is the Town’s only enterprise fund. The Town reports the following internal service funds: Fleet Internal Service Funds – This fund is used to account for the activity of fleet services provided by the Public Works Department and charged to other departments of the Town on a cost-reimbursement basis. The primary activity is governmental, and all balances are allocated accordingly for the entity-wide financial statements. Health Insurance Internal Service Funds – This fund is used to account for employee and retiree health and dental claims expense incurred by the Town related to the decision to self-insure for these benefits. This fund also collects premiums from Town employees and retirees to cover claims expense for elected spouse and/or family coverage. The primary activity is governmental, and all balances are allocated accordingly for the entity-wide financial statements. As a general rule, the effect of interfund activity has been eliminated from the entity-wide financial statements. Exceptions to this general rule are reimbursements to the General Fund and other charges between the Town’s utility system function and various other functions of the Town. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. D. BUDGETARY The Town’s budgets are adopted as required by the North Carolina General Statutes. An annual budget is adopted for the General Fund, the General Capital Reserve Fund (a sub- fund of the Capital Project Fund), the Transit Special Revenue Fund, the Emergency Telephone System Special Revenue Fund, the Health Insurance Internal Service Fund, the Fleet Management Internal Service Fund and the Utility System Operations Fund and Utility Capital Reserve Fund (both of which are sub-funds of the Utility System Enterprise Fund). All annual appropriations lapse at the fiscal year-end. However, based on Town ordinance, funds for unpaid purchase orders or delayed projects may be rolled over to the subsequent year. Multi-year project ordinances are adopted for the Parks, Street, Fire, General Governmental, and Downtown Project Funds (all sub-funds of the Capital Project Fund), for the Water and Sewer Project Funds (both sub-funds of the Utility Systems Enterprise Fund) the Community Development Block Grant Special Revenue Fund and the Economic Development Special Revenue Fund.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES D. BUDGETARY (Continued) All budgets are prepared using the modified accrual basis of accounting. Expenditures may not legally exceed appropriations at a functional level for all annually budgeted funds and a project-type level for the multi-year project funds. Amendments are required for any revisions that alter the total fund or project-type budget and must be approved by Town Council. Cross-functional amendments may be made by Town Management and reported to Town Council on a quarterly basis. The Town internally manages expenditures on a line item, departmental and project basis and, although not legally required, budget amendments may occur between line items and between departments of the same function or project type. All internal budget amendments must be approved by the Finance and Budget departments with some of these amendments being forwarded to the Town Manager for additional approval. During the year numerous budget amendments to the original budget were necessary. The original budget ordinance was adopted by July 1 of the fiscal year in accordance with State law. E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) 1. Deposits and investments The deposits of the Town are secured as required by North Carolina General Statute ("G.S.") 159-31. The Town may establish official depositories with any bank or savings and loan association whose principal office is located in North Carolina. G.S. 159-30(c) authorizes the Town to invest in obligations of the U.S. Treasury; obligations of any agency of the United States of America, provided the payment of interest and principal of such obligations is fully guaranteed by the United States; obligations of the State of North Carolina; bonds and notes of any North Carolina local government or public authority; obligations of certain non-guaranteed federal agencies; certain high quality issues of commercial paper and bankers' acceptances; and the North Carolina Capital Management Trust (NCCMT), an SEC registered mutual fund dedicated to serving North Carolina public units. The Town’s investments with a maturity of more than one year at acquisition and non-money market investments are reported at fair value as determined by quoted market prices and in accordance with GASB Statement 31, Accounting and Financial Reporting for Certain Investments and External Investment Pools. The securities of the NCCMT Government Portfolio, a SEC-registered (2a-7) external investment pool, is measured at amortized cost, which is the NCCMT’s share price. The NCCMT-term portfolio’s securities are valued at fair value. For the majority of investments, the Town both intends and has the ability to hold all securities to maturity. However, due to economic conditions and when it is beneficial to the Town, the Town may elect to sell investments prior to maturity on the secondary market. In accordance with State law, the Town has invested in securities which are callable and which provide for periodic interest rate increases in specific increments until maturity. These investments are reported at fair value as determined by quoted market prices. The Town pools most moneys from all funds to facilitate disbursement and investment and maximize investment income. Exceptions of non-pooled funds may include, but are not limited to, unspent bond proceeds and escrowed or endowed funds restricted for specific purposes. For purposes of the Statement of Cash Flows, the Town's proprietary funds consider equity in pooled cash and investments to be cash equivalents as they are essentially demand deposit accounts and short term investments. Investment income is allocated based on each fund’s monthly balance in relation to the total pooled cash balance. 2. Receivables and payables According to the North Carolina General Statutes, ad valorem taxes levied on July 1, the beginning of the fiscal year, are due September 1. Interest and penalties do not accrue until the following January 6, the lien date. Property taxes on certain registered motor vehicles are assessed and collected throughout the year. The taxes levied for fiscal year 2018 are based on the assessed values as of January 1, 2017. Within the fund financials ad valorem taxes receivable are not accrued as revenue because the amount is not considered "available." At June 30, taxes receivable are significantly past due and are not considered to be an available resource to finance the operations of the subsequent year. Accounting principles generally accepted in the United States of America state that property tax revenues, which are measurable but not available should be recorded as deferred inflow of resources. The receivable amount is reduced by an
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) (Continued) allowance for doubtful accounts and an amount equal to the net receivable is included in the governmental Balance Sheet and the Statement of Net Position. Any property taxes collected in advance of the fiscal year to which they apply are recorded as deferred inflow of resources. An allowance for doubtful accounts is maintained on the ad valorem taxes receivable as described above. The Town also maintains an allowance for doubtful accounts for the sanitation receivable, utility service accounts receivable, and other miscellaneous receivables. The General Fund loaned funds to the CDBG special revenue fund (see note 7) in fiscal year 2018. The loan was for cash flow purposes until grant funds were received and a fiscal year 2019 appropriation was available on July 1, 2018. The funds have been paid back in early fiscal year 2019. There were no other lending/borrowing activity arrangements between funds for fiscal year 2018. However, for the entity-wide financial statements, residual balances outstanding between the governmental activities and business-type activities are reported as due to or due from other activities. 3. Inventories and prepaid items Inventory is determined by physical count and valued at cost using the first-in, first-out method. Inventory in the governmental fund types consists of expendable supplies held for consumption and retail items held for resale. For consumable items, the cost thereof has been recorded in inventory at the time items were purchased. Expenditure occurs when items are issued from inventory. These inventories are accounted for in the central warehouse, which is managed by the Purchasing Division of the Finance Department. Total inventory is reported in the General Fund and Fleet Management Internal Service Fund, which is considered a governmental activity in the entity-wide Statement of Net Position. The Town also holds several inventories intended for retail resale. These are considered immaterial and inventory items are expensed as purchases are made and revenues are recorded when items are sold. Certain payments to vendors reflect costs applicable to future accounting periods and are reported as prepaid items in both entity-wide and fund financial statements and are expensed as balances are used. 4. Restricted assets Certain cash balances, which are managed as a part of pooled cash, are restricted by purpose and source. Cash balances in the Utility Systems Fund and General Fund related to customer deposits are not available for appropriations or expenditures and are segregated on the Statement of Net Position and classified as restricted cash. Other cash balances in the major funds (Utility System Enterprise Fund and Capital Project Fund) are restricted for unspent debt proceeds and unspent grant or donation funding and are only available for designated projects as described in the individual official statements, grant agreements and as approved by Council. 5. Capital assets Capital assets, which include land, buildings, equipment, vehicles and infrastructure assets (e.g., water & sewer lines, water tanks, roads, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the entity-wide financial statements. Capital assets are generally defined by the Town as assets with an initial, individual cost greater than $5,000 and an estimated useful life in excess of two years. Exceptions include general infrastructure assets, which are defined by the Town as assets with an initial cost greater than $50,000, and certain other intangible assets (including software) with a cost/value greater than $25,000. Assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value, while certain intangible assets are recorded at estimated fair value.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) (Continued) Governmental infrastructure assets (roads, sidewalks, bridges, etc) acquired prior to July 1, 2001, consist of assets acquired or that received substantial improvements subsequent to July 1, 1980, and are reported at estimated historical cost based on deflated estimated replacement costs. The cost of normal maintenance and repairs that do not add to the value to the asset or materially extend assets’ lives are not capitalized. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities are expensed in the period in which they are incurred. The total interest expense paid by the Town during the current fiscal year was almost $11.6 million (net of partner reimbursements) in the Utility Systems Fund. Capital assets of the Town are depreciated using the straight-line method over the following estimated useful lives:
Capital asset Life Automobiles and Light Trucks 3-5 years Heavy Trucks 6-10 years Office Furniture and Equipment 5-10 years Maintenance and Construction Equipment 3-10 years Utility System 50 years Buildings 50 years Streets, Sidewalks and Bridges 50 years Other Infrastructure 25-50 years Software and Other Intangible Assets Based on individual useful life of the asset
6. Deferred outflows/inflows of resources In addition to assets, the Statement of Net Position includes a separate section for deferred outflows of resources. This separate element represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Town has three items that meet this criterion, contributions made to a pension plan (LGERS & LEOSSA), contributions made to other post-employment benefits (OPEB) and deferred charge on debt financings (unamortized loss on a bond defeasance). Prior to fiscal year 2013, this deferred charge on debt financings was netted against the related long-term debt but is now reported separately. In addition to liabilities, the Statement of Net Position includes a separate section for deferred inflows of resources. This separate element represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. Deferred inflows include prepaid taxes related to property tax receivable, deferrals of pension expense, and deferrals of OPEB expense. The deferred inflow related to prepaid taxes is also included in the General Fund’s Statement of Revenues, Expenditures and Changes in Fund Balance. The pension related deferred outflow and deferred inflow are a direct result of the Town’s implementation of GASB Statement 68 and 71 in fiscal year 2015, GASB Statement 73 in fiscal year 2017, and those related to OPEB, GASB Statement 75 in the current fiscal year. 7. Compensated absences The vacation policy of the Town provides for the accumulation of up to thirty days earned vacation leave, with such leave being fully vested when earned. Also, unlimited compensatory time for non-exempt employees, if not taken, is paid to the employee upon termination of employment. All vacation leave is accrued when incurred in the entity-wide and proprietary fund financial statements. Vacation leave accrued over the 30 day limit is converted to sick leave annually.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) (Continued) The Town's sick leave policy provides for an unlimited accumulation of earned sick leave. Sick leave does not vest, but any unused sick leave accumulated at the time of retirement may be used in the determination of length of service for retirement benefit purposes. Since the Town has no obligation for the accumulated sick leave until it is actually taken, no liability for sick leave has been recorded. 8. Long-term obligations In the entity-wide financial statements, and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bond refunding losses are amortized to expense over the life of the bonds. Bonds payable are reported net of the applicable bond premium and discount with the refunding loss being reported as a deferred outflow of resources (starting fiscal year 2013). Bond issuance costs are expensed in the period incurred (beginning in fiscal year 2013). In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt related expenditures. In April 2015 Town Council adopted a Debt Management Policy, which restricts the use of long-term debt to financing capital projects and certain equipment that provide value to current and future citizens. Per the policy, debt will not be used for operational needs. Terms for debt instruments will typically be 20 years or less for non-utility debt and 30 years or less for utility related debt. In addition to state statute regulations, the policy outlines that tax supported debt service as a percentage of the approved General Fund operating budget will be 15% or less (limited flexibility is given to go up to 20%). Coverage ratios for the utility system debt will be maintained at 1.4 times for parity debt service and 1.1 times for all debt service. This is above the levels required in the current debt covenants, which is included in Note 9(D). For the fiscal year ending June 30, 2018, debt amounts (including debt service) and ratios are in accordance with the policy. 9. Fund equity – Net Position Net position in entity-wide and proprietary fund financial statements are classified as net investment in capital assets; restricted; or unrestricted. Restricted net position represents constraints on resources that are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments or imposed by law through State statute. 10. Fund equity – Fund Balances In the governmental fund financial statements, fund balance is composed of five classifications designed to disclose the hierarchy of constraints placed on how fund balance can be spent. For information on fund balance policy for the General Fund, see Note 15. The governmental fund types classify fund balances as follows: Nonspendable Fund Balance This classification includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually required to be maintained intact.
Inventories – portion of fund balance that is not an available resource because it represents the year-end balance of ending inventories, which are not spendable resources.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) (Continued)
Prepayments – portion of fund balance that is not an available resource because it represents resources that have already been spent for expenditures that will be incurred in future periods and is therefore not spendable. Steven’s Estate Endowment – portion of fund balance that is not an available resource due to estate requirements. The principal amount is nonspendable; however, interest earned on these funds is considered spendable and restricted, and therefore handled differently.
Restricted Fund Balance This classification includes amounts that are restricted to specific purposes externally imposed by donors, grantors, creditors or by state statute.
Restricted for Stabilization by State Statute – portion of fund balance that is restricted by G.S. 159-13(b)(16) and basically represents the amount of fund balance (in addition to the non-spendable portion) that is not liquid. This restriction is only applied to annually budgeted governmental funds. Restricted for Street Projects – portion of fund balance that represents unspent Powell Bill funding, which is considered a restricted revenue source for street construction and maintenance expenditures. Unspent balance is split between the street project fund (appropriated to specific projects), the downtown project fund (appropriated to specific projects) and capital reserve fund (available for use). All of these funds are sub-funds of the Capital Project fund. Restricted for Parks, Recreation and Culture – portion of fund balance restricted by grantors, donors or endowment or restricted by bond order as it relates to unspent debt, for parks, recreation & cultural resource related programs and activities. Restricted for Fire Projects & Activities – portion of fund balance restricted by donors for fire department related activities. Restricted for Police Operations & Activities – portion of fund balance that represents unspent drug forfeiture funds and donations targeted to police that are restricted for specific police operations and activities. This restriction also includes unspent funds in the Emergency Telephone System Special Revenue Fund as dictated by the NC 911 Board. Restricted for General Governmental Projects – portion of fund balance that represents unspent private grant funding related to a specific General Governmental project.
Committed Fund Balance This classification includes portion of fund balance that can only be used for specific purposes imposed by majority vote by quorum of Town Council (highest level of decision-making authority) through a budget ordinance amendment. Once adopted, the limitation imposed by the ordinance remains in place until a similar action is taken to remove or revise it.
Committed for Street Projects – includes (1) the entire non-restricted fund balance in the Street Project Fund (sub-fund of the Capital Project Fund), which is appropriated to specific street projects or (2) a portion of non-restricted fund balance in the Capital Reserve Fund (sub-fund of the Capital Project Fund) that is committed to street projects per Town ordinances or fee schedules. Committed for Downtown Projects – includes entire non-restricted fund balance in the new Downtown Project Fund (sub-fund of Capital Project Fund), which is appropriated to specific downtown projects.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) (Continued)
Committed for Parks, Recreation and Culture – includes (1) entire non-restricted fund balance in the Parks Project Fund (sub-fund of the Capital Project Fund), which is appropriated to specific parks, recreation and cultural resources projects or (2) a portion of non-restricted fund balance in the Capital Reserve Fund (sub-fund of the Capital Project Fund) that is committed to these same type of projects per Town ordinances or fee schedules or (3) a portion of fund balance in the General Fund specifically committed to a parks, recreation and cultural resources activity by Council action. Committed for Fire Projects – entire non-restricted fund balance in the Fire Project Fund (sub-fund of Capital Project Fund), which is appropriated to specific fire projects. Committed for Police Operations & Activities (LEOSSA) – portion of General Fund fund balance which is committed for payment of future retirement benefits associated with the Law Enforcement Offers’ Special Separation Allowance. Prior to fiscal year 2016, these funds were retained in a Pension Trust Fund, but due to implementation of GASB 73 (see Note 1), starting in fiscal year 2016 these funds and other related activity are now reported in the General Fund. Committed for General Governmental Projects – includes (1) entire non-restricted fund balance in the General Governmental Project Fund (sub-fund of the Capital Project Fund), which is appropriated to specific general governmental projects or (2) a portion of non-restricted fund balance in the General Fund specifically committed to a general governmental activity by Council action. Committed for Governmental Capital Projects – portion of non-restricted fund balance in the Capital Reserve Fund (sub-fund of the Capital Projects Fund) that is available for any governmental project and is considered committed to this area per Town ordinances or fee schedules, and by definition of a capital reserve fund. Committed for Transit – portion of non-restricted fund balance in the Transit Special Revenue Fund that is considered committed by Council and considered committed due to guidelines related to special revenue fund balance. This amount generally represents unspent transfers from the General Fund. Committed for Economic Development – total non-restricted fund balance in the Economic Development Special Revenue Fund is considered committed by Council and considered committed due to guidelines related to special revenue fund balance. This amount general represents unspent transfers from the General Fund.
Assigned Fund Balance This classification includes portion of fund balance that the Town intends to use for specific purposes. Assignments may be created, amended or eliminated by the Town Manager’s office. Although managed as dedicated to specific areas, amounts are available for appropriation by council.
Assigned for Subsequent Year Appropriations - portion of total fund balance not already classified in restricted or committed that is (1) appropriated in fiscal year 2019 budget or (2) appropriated through the rollover process from fiscal year 2018 to 2019 as allowed by the Town’s budget ordinance. Assigned for Affordable Housing - portion of fund balance not already classified in restricted or committed that is assigned to affordable housing projects and activities, including rehabilitation, façade improvement and grants or loans to non-profit agencies who provide related services. These funds may be included in the Town’s Annual Action Plan for the U.S. Department of Housing and Urban Development (HUD), but are not restricted like the Community Development Block Grant funds from HUD, that are accounted for in the CDBG Special Revenue Fund. Assigned for Workers’ Compensation Self Insurance – portion of fund balance in the General Fund not already classified in restricted or committed that is assigned to the workers compensation self-insurance program for the payment of claims and the administration of the program.
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Note 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES AND FUND EQUITY (NET POSITION) (Continued)
Assigned for Small Claims Self Insurance – portion of fund balance in the General Fund not already classified in restricted or committed that is assigned to the self-insurance program for small claims, which covers claims expense, co-payments and deductibles not covered by the Town’s insurance policy. Assigned for Parks, Recreation and Culture – portion of fund balance in the General Fund not already classified in restricted or committed that is assigned to various parks, recreation and cultural resources projects or activities, including Town festivals and some Teen Council activities.
Unassigned Fund Balance This classification includes the portion of fund balance that has not been restricted, committed or assigned to specific purposes and is available for general appropriation by Town Council. Only the General Fund may have a positive unassigned fund balance, while other government funds may have a negative unassigned fund balance if applicable. For projects that include multiple revenue sources, the Town’s standard practice is that resources will be used in the following hierarchy: bond proceeds, federal funds, state funds, local non-town funds, town funds. For purposes of fund balance classification, expenditures are to be spent from restricted fund balance first, followed in order by committed, assigned and lastly unassigned fund balance. The Chief Financial Officer or their appointee has the authority to deviate from this policy in order to comply with grant agreements, bond orders or if it is in the best interest of the Town. In April 2015, the Town adopted a fund balance policy for the General Fund. At a minimum, assigned and unassigned fund balance (referred to as “accessible” in the policy) will be at least 25% of budgeted General Fund expenditures. Total fund balance shall be at least 40% of budgeted General Fund expenditures, which equates to approximately five months of operations. Amounts of assigned and unassigned over the minimum will be considered as a potential funding source for one-time capital needs. Accessible fund balance (as defined in the policy) can only be used in excess of these limits in order to provide for unforeseen shortfalls in revenues or for emergencies such as a natural disaster. In the event balances fall below these minimums, Council will adopt a plan to restore balances to meet the policy within a three-year period at most. For the fiscal year ending June 30, 2018, fund balances and related practices remain in accordance with the policy. 11. Pensions For the purpose 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 Local Governmental Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Town’s employer contributions are recognized when due and the Town has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investments are reported at fair value. The Law Enforcement Officers Special Separation Allowance (LEOSSA) operates in a similar manner. The annual actuary analysis measures net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense. The plan currently operates on a pay-as-you-go basis, so it has no net position. Plan member contributions are recognized in the period in which the contributions are due. The Town's employer contributions are recognized when due. Benefits and refunds are recognized when due and payable in accordance with the terms of LEOSSA. Since the plan is operated on a pay-as-you-go basis with no legal trust, there are no investments.
12. Comparative data/reclassifications
Comparative total data for the prior year have been presented in the fund financial statements for the annually budgeted governmental and proprietary funds in order to provide an understanding of the changes in the financial position and operations of these funds. Certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year’s presentation.
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Note 2 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY The CDBG fund has a negative fund balance as of June 30, 2018 in the amount of $116,820. This is the result of timing of grant reimbursement and unrealized program income related to the Section 8 HUD loan, as referenced in Note 9.G. and Note 17. A temporary cash loan was recorded at year end to cover expenditures and was paid off in full in early fiscal year 2019.
Note 3 DEPOSITS AND INVESTMENTS Deposits All of the Town’s deposits are either insured or collateralized using one of two methods. Under the Dedicated Method, all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Town’s agent in the Town’s name. Under the Pooling Method, which is a collateral pool, all uninsured deposits are collateralized with securities held by the State Treasurer's agent in the name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity for the Town, these deposits are considered to be held by the Town’s agent in the Town’s name. The amount of the pledged collateral is based on an approved averaging method for non-interest bearing deposits and the actual current balance for interest-bearing deposits. Depositories using the Pooling Method report to the State Treasurer the adequacy of their pooled collateral covering uninsured deposits. The State Treasurer does not confirm this information with the Town or the escrow agent. Because of the inability to measure the exact amounts of collateral pledged for the Town under the Pooling Method, the potential exists for under-collateralization, and this risk may increase in periods of high cash flows. However, the State Treasurer of North Carolina enforces strict standards of financial stability for each depository that collateralizes public deposits under the Pooling Method. The Town has no policy regarding custodial credit risk for deposits but relies on the State Treasurer to enforce standards of minimum capitalization for all pooling method financial institutions and to monitor them for compliance. The Town complies with the provisions of G.S. 159-31 when designating official depositories and verifying that deposits are properly secured. At June 30, 2018, the Town's deposits (including certificates of deposit) had a carrying amount of $13.3 million and a bank balance of $14.9 million. Of the bank balance, $1 million was covered by federal depository insurance and the remainder was covered by collateral held under the pooling method. At June 30, 2018, the Town’s petty cash fund totaled approximately $16,825.
Investments
Valuation Measurement
Method
Fair Value Less than 1 Year 1-2 Years 2-3 Years 3-5 Years US Treasuries Fair Value Level 1 $ 99,584,712 25,915,207 33,208,557 25,986,417 14,474,531 US Agencies - FFCB Fair Value Level 1 76,918,485 31,524,078 18,393,124 14,360,948 12,640,335 FHLB Fair Value Level 2 147,108,249 24,094,119 41,217,563 63,797,465 17,999,102 FHLMC Fair Value Level 1 68,426,937 23,124,942 34,331,863 5,135,578 5,834,554 FNMA Fair Value Level 1 77,462,623 22,134,863 18,343,173 22,634,947 14,349,640 Municipal Paper Fair Value Level 1 10,470,689 3,801,750 5,546,090 1,122,849 -- NCCMT Government Portfolio Amortized Cost 57,010,281 57,010,281 -- -- -- Total $ 536,981,976 187,605,240 151,040,370 133,038,204 65,298,162
All investments are measured using the market approach: using prices and other relevant information generated by market transactions involving identical or comparable assets or a group of assets. Level of fair value hierarchy: Fair Value Level 1 debt securities are valued using directly observable, quoted prices (unadjusted) in active markets for identical assets. Fair Value Level 2 debt securities are valued using matrix pricing technique. Matrix pricing is used to value securities based on the securities' benchmark quoted prices. Funds invested in the NCCMT Government Portfolio, a SEC-registered (2a-7) external investment pool, are measured at amortized cost, which is the NCCMT's share price.
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Note 3 DEPOSITS AND INVESTMENTS (Continued) Interest Rate Risk – In accordance with its investment policy, the Town manages its exposure to declines in fair values by requiring purchases of securities to be laddered with staggered maturity dates and limiting all securities to a final maturity of no more than five years. Credit Risk - State law limits investments in commercial paper to the top rating issued by nationally recognized statistical rating organizations (NRSROs). As of June 30, 2018 the Town had no investments in commercial paper. The Town has a formal policy that addresses the management of credit risk in various ways, including its compliance with NC G.S. 159-30, and its quarterly review of the investment portfolio by an independent consultant. The Town’s investments in the NC Capital Management Trust Government Portfolio carried a credit rating of AAAm by Standard & Poor’s as of June 30, 2018. The Town’s investments in US Agencies (Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, Federal National Mortgage Association) are rated AAA by Standard & Poor’s and Aaa by Moody’s Investors Service as of June 30, 2018. Concentration of Credit Risk - The Town’s policy does not limit the amount that the Town may invest in any one issuer; however, the Town will make every effort to maintain a diversified investment portfolio according to security type and institution. More than 5 percent of the Town’s investments are in Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation and Federal National Mortgage Association securities. These investments are 27%, 14%, 13% and 14% respectively, of the Town’s total investments. Note 4 RECEIVABLES AND RELATED ACCOUNTS Accounts Receivable as of year-end for the Town’s individual major funds in the aggregate as presented in the fund financials and entity-wide totals, including the applicable allowances for uncollectible accounts, is as follows:
General Capital Projects
Special Revenue
Total Governmental
Funds Full Accrual Adjustment
Entity-Wide Governmental
Activity
Business-type Activities
(Utility System) Receivables: Housing Loans $ -- -- -- -- 4,029,411 4,029,411 -- Due from other Governments 14,604,325 1,526,169 934,430 17,064,924 22,683,034 39,747,958 5,246,712 Accounts 1,459,467 - - 1,459,467 423,041 1,882,508 12,414,558 Gross receivables 16,063,792 1,526,169 934,430 18,524,391 27,135,486 45,659,877 17,661,270 Less: Allowance Accounts (66,276) -- -- (66,276) -- (66,276) (633,539) Housing loans -- -- -- -- (3,471,276) (3,471,276) -- Net total receivables at June 30, 2018 $ 15,997,516 1,526,169 934,430 18,458,115 23,664,210 42,122,325 17,027,731
The amounts above do not include accrued interest receivable and ad valorem taxes receivable which are listed separately in the Basic Financial Statements. Taxes receivable of $288,000, as listed in the Basic Financial Statements, is net of a $156,000 allowance for doubtful accounts. Special Revenue Fund receivables include $877,000 related to the Transit Fund, $57,000 related to the Emergency Telephone System Fund. Health Insurance Internal Service Fund receivables of $211,914 is included in Governmental Activities (primary customer) in the entity-wide financial statements. For governmental activities, $24 million of the $45.7 million accounts receivable balance is recorded as due from other governments and is related to grants or other financial assistance that was awarded. Of this grant total, $18.3 million is considered unearned, which is the full balance of unearned revenue at June 30, 2018 for governmental activities. The remainder of the governmental receivables is related to sales tax and other similar allocations that relate to fiscal year 2018 and were received within the 90-day window after June 30, 2018. Within the housing loans are two loans to Memento Mori, LLC. totaling $2.8 million. It was determined that payments to the Town from Memento Mori, LLC. are uncertain. Therefore, to be conservative an allowance was recorded for the full amount of both loans. See Note 17 for additional information.
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Note 4 RECEIVABLES AND RELATED ACCOUNTS (continued) For Business-type activities due from other governments include $4.5 million related to partner receivables from the Town of Apex related to shared water and reclamation facilities, including their portion of capital projects; $.6 million related to a mutual aid agreement with the City of Durham for backup water supply; and $41,000 related to Chatham County for raw water purchases. All the $12.4 million recorded as accounts receivable is related to customer utility services. In conformity with accounting principles generally accepted in the United States of America, revenues that are measurable but not available are reported as either an advance from customers/grantors or a deferred inflow of resources in the fund financials. The $171,000 of advance from customers in the Governmental Funds is mostly comprised of prepaid fees related to parks, recreation and culture activities. For Business-type activities the ($3,000) advance from customers relates to utility annexation agreements and the $756,000 in unearned revenues is related to the Town of Apex’s portion of the state revolving loan that also resides in long-term receivables. See Note 5 for details on deferred inflow of resources. Note 5 DEFERRED OUTFLOWS AND INFLOWS OF RESOURCES At June 30, 2018, the various components of deferred outflows of resources related to the entity-wide statements are as follows:
Governmental Activities
Business-Type Activities
Total
Deferred Outflow Related to Pensions (Note 12.A.) $ 14,990,162 23,094,464 1,062,489 16,052,651 Deferred Outflow Related to OPEB (Note 12. E) 7,054,585 1,622,359 8,676,944 Deferred Charge on Debt Refinancing 1,049,717 1,141,926 2,191,643 Total Deferred Outflows $ 23,094,464 3,826,774 26,921,238
At June 30, 2018, the various components of deferred inflows of resources are as follows:
Earned but Unavailable
Received and Unearned
Governmental Fund Financial
Balance
Net Unearned (Earned) Portion of
Receivables
Entity-Wide
Governmental Activity
Business-type
Activities (Utility System)
Governmental Deferred Inflows: Ad Valorem Taxes $ 174,497 -- 174,497 154,455 328,952 --
Vehicle Tag Revenue 249,083 -- 249,083 (513,236) (264,153) -- Total Deferred Inflows Related to
Property Taxes & Vehicle Tag Fees $ 423,580 -- 423,580 (358,781) 64,799 --
Pension Activity (Note 12.A & B.) 774,472 624,007
OPEB Activity (Note 12.C.) $ 11,554,207 2,657,149 Total Deferred Inflows of Resources
at June 30, 2018 $ 12,393,478 3,281,156
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Note 6 CAPITAL ASSETS Capital asset activity for the year ended June 30, 2018, was as follows:
Beginning Transfers Ending Balance Additions Retirements In (Out) Balance
Government Activities: Capital assets, Non-depreciable: Land & Improvements $ 241,413,500 10,516,886 -- 12,236,271 264,166,657 Construction-in-Progress 74,937,755 26,420,685 (3,903,796) (25,429,522) 72,025,122 Total Capital Assets, Non-depreciable 316,351,255 36,937,571 (3,903,796) (13,193,251) 336,191,779 Capital Assets, Depreciable: Buildings & Improvements 120,717,544 -- -- -- 120,717,544 Machinery & Equipment 22,900,776 647,306 (620,512) 10,273,951 33,201,521 Vehicles 33,249,234 1,767,435 (1,407,578) 2,621,214 36,230,305 Infrastructure 754,568,485 33,575,168 -- 308,320 788,451,973 Intangible Assets 7,424,396 3,606,360 -- -- 11,030,756 Total Capital Assets, Depreciable 938,860,435 39,596,269 (2,028,090) 13,203,485 989,632,099 Less Accumulated Depreciation for: Buildings & Improvements 33,219,746 2,584,238 -- -- 35,803,984 Machinery & Equipment 17,230,892 2,306,995 (620,512) -- 18,917,375 Vehicles 21,472,007 3,052,353 (1,407,578) 10,234 23,127,016 Infrastructure 337,263,895 19,257,030 -- -- 356,520,925 Intangible Assets 1,325,223 1,296,957 -- -- 2,622,180 Total Accumulated Depreciation 410,511,763 28,497,573 (2,028,090) 10,234 436,991,480 Total Capital Assets, Depreciable, Net 528,348,672 11,098,696 -- 13,193,251 552,640,619 Governmental Activities Capital Assets, Net $ 844,699,927 48,036,267 (3,903,796) -- 888,832,398
Total Governmental assets include Internal Service Fund book value of $1.6 million. General infrastructure constructed and donated by area developers (and acquired through annexations) with a value of $44.4 million is included in governmental additions. Included in this amount is $.3 million in developer agreement adjustments.
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Note 6 CAPITAL ASSETS (Continued) Beginning Transfers Ending Balance Additions Retirements In (Out) Balance
Business-type Activities: Capital assets, Non-depreciable: Land & Improvements $ 25,879,742 -- -- 469,194 26,348,936 Construction-in-Progress 181,512,737 29,458,660 (1,085,499) (41,402,575) 168,483,323 Total Capital Assets, Non-depreciable 207,392,479 29,458,660 (1,085,499) (40,933,381) 194,832,259 Capital assets, Depreciable: Buildings & Improvements 172,886,477 -- -- 104,830 172,991,307 Machinery & Equipment 9,479,546 81,143 -- 2,685,028 12,245,717 Vehicles 5,123,667 463,981 (314,811) 782,120 6,054,957 Infrastructure 622,690,646 8,751,276 -- 37,351,170 668,793,092 Intangible Assets 1,532,038 -- -- -- 1,532,038 Total Capital Assets, Depreciable 811,712,374 9,296,400 (314,811) 40,923,148 861,617,111 Less Accumulated Depreciation for: Buildings & Improvements 34,577,762 3,458,977 -- -- 38,036,739 Machinery & Equipment 6,135,607 658,687 -- -- 6,794,294 Vehicles 3,633,211 552,384 (314,811) (10,233) 3,860,551 Infrastructure 165,030,637 13,359,852 -- -- 178,390,489 Intangible Assets 1,297,128 90,933 -- -- 1,388,061 Total Accumulated Depreciation 210,674,345 18,120,833 (314,811) (10,233) 228,470,134 Total Capital Assets, Depreciable, Net 601,038,029 (8,824,433) -- 40,933,381 633,146,977 Business-type Activities Capital Assets, Net $ 808,430,508 20,634,227 (1,085,499) -- 827,979,236
Area developers donated utility infrastructure with a gross value of $8.7 million, which is included in the business-type asset additions.
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Note 6 CAPITAL ASSETS (Continued) Depreciation expense was charged to functions of the Town as follows: Governmental Activities: General Governmental $ 2,956,430 Development 71,728 Facilities & Infrastructure 19,452,601 Public Safety 2,025,353 Public Works 937,239 Environmental Protection 1,100,270 Parks, Recreation and Culture 1,841,679 Total depreciation expense (excluding internal service) 28,385,300 Capital assets held by the Town’s Fleet Management internal service fund are charged to the various functions based on their usage of assets 112,273 Total depreciation expense – governmental activities $ 28,497,573
Business-type Activities: Utility System $ 18,120,833
The Town has numerous active construction projects as of June 30, 2018. These projects include new street construction, widening and improvements of existing streets, new parks and related facilities, fire stations, fire trucks and pumpers, utility system improvements and new construction, utility plant expansions and other Town facilities and equipment. At year-end, the Town’s significant commitments with contractors are as follows: Spent-to-date Contract Commitments Capital project fund: Carpenter Fire Station Road / CSX Rail Grade Separation (NEPA / Design) $ 6,207,425
3,330,000
Cary Parkway (Evans to North Harrison) 1,831,437 1,386,000 Cary Parkway/High House Road Intersection 1,805,529 3,120,000 Crabtree Creek Greenway 4,338,899 937,000 Downtown Park Master Plan 45,043 692,000 Garmon Operations Center - Facility Improvements - Phase II 536,312 1,828,000 Library Lower Level -- 630,000 Library Parking Structure 5,572,856 8,467,000 Morrisville Parkway and Carpenter Upchurch Road Intersection Improvements 346,928
851,000
Morrisville Pkwy Extension - Phase III Carpenter Upchurch Rd to Green Level Church Rd 13,496,229
3,339,000
Reduce Congestion Through Intersection Improvements (Based on LOS) - Bond Funded 1,628,359
2,341,000
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Note 6 CAPITAL ASSETS (Continued) Spent-to-date Contract Commitments
Sanitation & Recycling Trucks 1,759,916 1,666,000 Street Improvements - FY 2018 1,309,723 4,100,000 Transportation Feasibility Studies 71,457 570,000 White Oak Creek Greenway- American Tobacco Trail Segment 4,060,304 1,116,000 All Other Parks 35,976,737 2,080,000 All Other Streets 61,533,500 4,629,000 All other GG 18,492,375 1,477,000 Other Fire and Downtown Projects 5,023,706 409,000 TOTAL CAPITAL PROJECT COMMITMENTS $ 164,036,735 42,968,000
Utilitiy system enterprise fund: Cary/Apex Water Treatment Facility – Process Basin Rehabilitation/Restoration, Net $ 533,911
629,000
Cary/Apex Water Treatment Plant - Phase III Expansion, Net 57,470,058 4,821,000 Cary/Apex Water Treatment Plant - Raw Water Transmission Pipeline, Net 8,924,551 8,865,000 Force Main Inspection & Rehabilitation - FY 2008 2,779,828 815,000 Green Level West Road Water Line - Phase III 444,673 1,832,000 Holly Brook – Phase I, II and III Sewer Extension 1,286,396 1,335,000 Holly Brook Subdivision Water Lines 1,060,824 1,051,000 Kilmayne Water Storage Tank 5,076,058 1,000,000 NC55 Water Line Extension - Phase II 9,678 2,000,000 NCWRF - Diffused Air System 314,580 992,000 SCADA Conversion - North Cary Water Reclamation Facility 356,626 637,000 Sewer System Repair/Replacement - FY 2018 28,933 612,000 Upgrade Water Lines - FY 2017 2,445,590 1,242,000 Upgrade Water Lines - FY 2018 25,774 2,285,000 Western Cary Water Storage Tank 4,918,165 4,017,000 Wimberly Road Water Line 528,405 3,422,000 Winding Pine Regional Pump Station, Gravity Sewer and Force Main 309,218 667,000 WWRWMF - New Water Reclamation Facility, Net 119,483 3,175,000 Other Utility Projects, Net 119,209,240 10,788,000 TOTAL UTILITY PROJECT COMMITMENTS $ 205,841,991 50,185,000
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Note 7 INTERFUND RECEIVABLES AND PAYABLES The Town has several interfund receivable/payable accounts. The allocation of internal profits and losses to the Utility System Enterprise Fund from the Health Insurance and Fleet Management Internal Service Funds amounted to $1.3 million. In the entity-wide financial statements, this amount is a net receivable for business-type activity and a net payable for governmental activities. The Town has a fund financial receivable in the General Fund for $150,000, with a corresponding payable in the Community Development Block Grant Special Revenue Fund. This temporary cash loan was recorded at year end to cover expenditures and was paid off in full in early fiscal year 2019. No other interfund receivable or payable activity was recorded as of June 30, 2018. Note 8 LEASES A. OPERATING LEASES The Town leases and rents numerous pieces of equipment, facilities and supplies on a regular basis. Most of these agreements are short term in nature with no long-term commitments and or significant financial impacts. Lease or rental agreements that are financially significant (either annually or over a multiple year commitment) are discussed specifically herein. In fiscal year 2015 the Town entered into a seven-year lease agreement with Air Liquide with the total cost being $.2 million. In fiscal year 2018 lease payments of $30,000 were made. As part of the joint ownership agreement and related inter-local agreement, Apex shared approximately twenty-three percent (23%) of the total cost. Apex’s cost over the life of the lease is approximately $42,000. Apex’s part of the annual lease payment is $6,900. The remaining commitment for is approximately $90,000 at June 30, 2018 ($28,000 related to Apex) with the expected annual lease payment for future years to be $30,000 ($6,900 related to Apex). Lease payment expense, as well as the related long-term liability, are included in the utility enterprise fund statements.
In fiscal year 2014 the Town entered into an agreement with Toshiba that ended during fiscal year 2018. Monthly charges averaged slightly over $14,000 in fiscal year 2018, which includes a base charge of approximately $6,000 with the remaining being a variable charge per copy. Approximately $170,000 was paid in fiscal year 2018 ($160,000 General Fund, $10,000 Utility Enterprise Fund). Lease payments are allocated to operating departments throughout the Town and are therefore included as expenses in the General Fund and the operations sub-fund of the Utility Enterprise Fund. The expected annual lease payment for the subsequent year is expected to not exceed $200,000 ($180,000 General Fund, $20,000 Utility Enterprise Fund). Due to the way the contract is structured, there is no related long-term liability recorded.
The Town has numerous agreements with Wake County Public Schools for the use of their facilities and equipment related to Town programs. The Town is required to pay certain rental fees according to the school fee schedule. Availability agreements exist for individual schools and are typically for a 25-year period. There is no minimum obligation for rental amounts since fees are based on specific needs, which are organized collectively with the Town and the school system on a periodic basis. Approximately $107,000 was paid to Wake County Public Schools during fiscal year 2018 for this purpose and is included in General Fund expenditures. Amount to be paid in fiscal year 2019 is not expected to exceed $110,000. Starting in fiscal year 2015, the Town entered into a five-year lease agreement with the Carolina Recording for call recording equipment at the Town’s backup 911 center. Annual payments (including what was paid in fiscal year 2018) are $5,000 with the last payment due in fiscal year 2019. The total cost of this lease is $26,000 over the life of the lease. Payments related to the lease are included as expenditures in the Emergency Telephone Special Revenue Fund. There is a remaining commitment of $5,000 at June 30, 2018 and the maximum payment expected in fiscal year 2019 is $5,000. A related long-term liability is recorded in the entity-wide statements for Governmental activities.
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Note 8 LEASES A. OPERATING LEASES (Continued) After completing some of the Ontario capital leases in previous fiscal years and during fiscal year 2018, the Town opted to enter into a month-to-month operating lease agreement for various pieces of technical equipment and software. Although some specific pieces of equipment may have been purchased, in general, titles were not transferred to the Town for the related equipment after the respective capital leases were complete. Some of these operating leases ended during fiscal year 2018 and some are still active as of the date of this report (on a month-to-month basis). In fiscal year 2018, payments of approximately $35,000 were made related to these operating lease agreements. Based on the decrease in current activity, the expected maximum future annual commitment on Ontario active operating leases should not exceed $35,000. These lease payments are included as expenditures in the General Fund with certain qualified pieces included as expenditures in the Emergency Telephone System Special Revenue Fund. During December 2016, the Town entered into a 10-year operating lease with SUSO 4 Wellington, LP beginning April 1, 2017 for facilities intended to be used for Police Substation 3. Base payments for fiscal year 2018 were slightly under $39,000 and the approximate total cost of payments expected over the life of the 10-year lease is $441,000. Other fees and charges related to this property is approximately 23 percent of the base lease payment, which brings the total paid for fiscal year 2018 to $50,000. The maximum total lease amount with fees is $550,000. At the end of the 10-year lease period, there are two options to renew for an additional five years each renewal period, though renewal is not reasonably assured. The approximate cost to renew for years 11-15 is $274,000 and years 16-20 is $318,000. The future minimum lease payments for non-cancelable portion of the operating lease are $392,000 and for fiscal year 2019 the maximum base commitment is $40,000. The lease payments are included as expenditures in the police operations within the General Fund. A related long-term liability is recorded in the entity-wide statements for Governmental activities.
B. CAPITAL LEASES Over the past several years the Town has entered into numerous lease agreements with Ontario Leasing (later assigned to Bank Financial). The Town typically enters into a minimum of one new lease per year, but usually more. In fiscal year 2018, the Town entered into nineteen new capital leases with Ontario. For leases, only assets meeting the $5,000 threshold for equipment or $25,000 for software are added to asset inventory. The book value of leased assets at June 30, 2018 is $.6 million with $.2 million related to new capital leases started in fiscal year 2018. These are recorded as governmental-activity capital assets in the entity-wide financial statements, as well as the related long-term obligations. The Ontario leases are typically for three years and at the end of the lease, the old equipment is usually replaced with the new equipment that will be financed through a similar lease or kept for a short-term through an operating lease (month-to-month). Imputed interest rates on these leases range from 0.25% to 5%. Title to the equipment does not transfer automatically to the Town upon completion of these leases; however, these leases meet the capital lease criteria due to the ratio of present value (of payments) to the fair value of the leased equipment. The Town may choose to purchase certain equipment at the end of the lease. The annual amount paid for active Ontario leases for fiscal year 2018, was $1 million, which includes interest. Monthly debt service (including interest) on active Ontario leases was approximately $.1 million at June 30, 2018.
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Note 8 LEASES A. CAPITAL LEASES (Continued)
Most of these technology related capital lease payments are funded by the General Fund, with certain eligible pieces being funded by the Emergency Telephone System Special Revenue Fund. The future minimum lease obligations and the net present value of these future minimum lease payments as of June 30, 2018, are as follows:
Year Ending June 30 Ontario 2019 $ 776,213 2020 550,769 2021 198,278 2022 27,773
Total minimum lease payments 1,553,033 Less: Interest (30,320)
Present value of future minimum lease payments $ 1,522,713
Note 9 LONG-TERM OBLIGATIONS A. INSTALLMENT FINANCING AGREEMENTS In July 2008, the Town entered into an installment purchase agreement with RBC Bank (PNC Bank as of March 2012) to finance an aerial fire truck and a rescue truck. The financing required principal payments to begin in fiscal year 2009 with an interest rate of 3.56% to be paid semi-annually. Debt service payments are funded by the General Fund. At June 30, 2018, no unspent proceeds remain available. The final debt service payment was made June 1, 2018. B. LIMITED OBLIGATION BONDS In June 2010, the Town refunded a portion of the 2002 certificates of participation by issuing $15.2 million of Limited Obligation Bonds, resulting in a net present value savings of approximately $.8 million (see debt section E for more information on refinancings). Limited obligation bonds, like certificates of participation, continue to pledge the underlying assets related to the original financing, but result in lower interest rates than certificates of participation. Interest rates range from 2% to 3.25%. Principal and interest requirements will be provided by General Fund appropriation in the year in which they become due. At June 30, 2018, no unspent proceeds remain available.
At June 30, 2018, the installment purchase debt related to the limited obligation bonds, series 2010 is $5.5 million, with future debt service payments as follows:
Governmental Activities Year Ending
June 30 Principal Interest Total 2019 $ 2,365,000 152,100 2,517,100 2020 800,000 98,825 898,825 2021 795,000 66,925 861,925 2022 790,000 38,188 828,188 2023 780,000 12,675 792,675 Total $ 5,530,000 368,713 5,898,713
In February 2012, the Town issued $11.3 million in Limited Obligation Refunding Bonds, Series 2012 to refund all of the remaining certificates of participation, series 2002A except for the payment to be made in fiscal year 2013. The refunding was done as a private bank placement via a competitive bid and resulted in a fixed interest rate of 2.34%. The refunding resulted in net present value savings of over $.8 million (see debt section E for more information on refinancings). Principal and interest requirements will be provided by General Fund appropriation in the year in which they become due. At June 30, 2018, no unspent proceeds remain available.
At June 30, 2018, the installment purchase debt related to the limited obligation bonds, series 2012 is $6.5 million, with future debt service payments as follows:
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Note 9 LONG-TERM OBLIGATIONS
Governmental Activities Year Ending
June 30 Principal Interest Total 2019 $ 115,000 152,042 267,042 2020 1,655,000 131,333 1,786,333 2021 1,625,000 92,957 1,717,957 2022 1,595,000 55,283 1,650,283 2023 1,565,000 18,311 1,583,311 Total $ 6,555,000 449,926 7,004,926
C. GENERAL OBLIGATION BONDS The Town issues general obligation bonds to provide funds for the acquisition and construction of major capital facilities. General obligation bonds have been issued for both governmental and business-type activities. All of the Town’s general obligation bonds are issued with a fixed rate, except for the Public Improvement, Series 2006, which is the Town’s first and currently the only variable rate general obligation bonds held. Interest on these variable rate bonds is determined by a remarketing agent based upon market conditions. Average interest rate throughout fiscal year 2018 was 1.04%. In October 2017 the Town issued $31,035,000 of general obligation bonds to fund fire, parks and streets projects. In addition, the Town issued $28,815,000 to refinance a portion of the Series 2009 public improvement bonds and all of the Series 2016A refunding bonds (see debt section E for more information on refinancings). Interest on the bonds ranges from 2-5% with the bonds being paid back over 20 years for the new money portion and the term remains the same for the bonds refunded. As of June 30, 2018, there is $18.1 million outstanding unspent proceeds related to the Series 2017A general obligation bonds, which is included in the net position calculation. General obligation bonds are direct obligations and pledge the full faith and credit of the government. These bonds generally are issued as 20-year serial bonds with equal amounts of principal maturing each year. General obligation bonds outstanding at June 30, 2018 are as follows:
Date Amount of Balance Interest Date Series Original Outstanding
Purpose Rates Issued Matures Issue June 30, 2018 Governmental Activities Public Improvement, Series 2006 Variable 7/12/2006 6/1/2027 $ 47,255,000 $ 29,255,000 Public Improvement, Series 2009 3% - 5% 6/1/2009 6/1/2021 28,000,000 1,555,849 Refunding Bonds, Series 2009 2% - 5.25% 6/1/2009 6/1/2020 12,650,000 2,125,000 Refunding Bonds, Series 2010B 4% 10/5/2010 6/1/2022 14,670,000 10,390,000 Public Improvement, Series 2014 3% - 5% 3/4/2014 3/1/2034 32,915,000 24,220,000 Public Improvement, Series 2017A 2% - 5% 10/11/17 6/1/2037 31,035,000 29,680,000 Refunding Bonds, Series 2017B 2% - 5% 10/11/17 6/1/2029 15,222,965 15,162,210
Total Governmental Activities 112,388,059
Business-Type Activities Public Improvement, Series 2009 3% - 5% 6/1/2009 6/1/2021 $ 25,000,000 $ 1,389,151 Refunding Bonds, Series 2009 2% - 5.25% 6/1/2009 6/1/2020 27,370,000 6,890,000 Refunding Bonds, Series 2010A 3% - 5% 6/15/2010 3/1/2022 9,278,605 5,760,000 Public Improvement, Series 2014 3% - 5% 3/4/2014 3/1/2039 41,405,000 37,390,000 Refunding Bonds, Series 2017B 2% - 5% 10/11/17 6/1/2029 12,233,959 13,537,792
Total Business-Type Activities 64,966,943
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Note 9 LONG-TERM OBLIGATIONS C. GENERAL OBLIGATION BONDS (Continued) Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ending Governmental Activities Business-type Activities June 30 Principal Interest Principal Interest 2019 $ 9,886,132 4,145,315 5,988,868 2,568,720 2020 9,823,014 3,722,845 5,966,987 2,303,924 2021 9,815,372 3,317,272 5,989,628 2,053,294 2022 9,770,938 2,912,005 5,029,062 1,801,159 2023 9,304,146 2,514,800 2,740,855 1,573,356
2024 – 2028 39,194,217 7,373,487 14,690,783 6,058,845 2029 – 2033 16,844,240 2,787,396 10,680,760 3,823,805 2034 – 2038 7,750,000 534,250 11,340,000 1,817,938 2039 – 2043 -- -- 2,540,000 95,250
TOTAL $ 112,388,059 27,307,370 64,966,943 22,096,291
D. REVENUE BONDS The Town issued the first series of revenue bonds in fiscal year 2001, the second series in fiscal year 2004, the third series in the latter part of fiscal year 2007, the fourth series in fiscal year 2013, fifth series in fiscal year 2015, sixth series in fiscal year 2017 and a refunding series 2017B in fiscal year 2018. The first three series issued have been paid off or refinanced which is discussed below in Section E. In March 2017, the Town issued $31.9 million of revenue bonds to fund water and wastewater projects. With these bonds, the Town pledges income derived from the acquired or constructed assets to pay debt service. As of June 30, 2018, $7.3 million remains unspent of the 2017 proceeds. The refunding Series 2017B which were issued in December 2017, will be discussed in more detail in Section E. Revenue bonds outstanding at year-end are as follows:
Purpose Interest Rates Date Issued Date Series
Matures Amount of Original
Issue
Balance Outstanding
June 30, 2018 Series 2013 Combined Utility System 2.00% - 5.00% 1/29/2013 12/1/2042 $ 98,400,000 $ 12,765,000 Series 2015 Combined Utility System 3.00% - 5.00% 3/11/2015 12/1/2039 53,785,000 50,975,000 Series 2017 Combined Utilty System 1.00% - 5.00% 3/16/17 12/1/2041 31,955,000 31,210,000 Series 2017B Revenue Refunding 1.75% - 5.00% 12/21/2017 12/1/2042 92,925,000 92,925,000 Total Revenue Bonds $ 187,875,000
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Note 9 LONG-TERM OBLIGATIONS D. REVENUE BONDS (Continued)
Revenue bond debt service requirements to maturity are as follows: Year ending
June 30 Principal Interest Total 2019 $ 4,135,000 7,582,481 11,717,481 2020 4,350,000 7,429,006 11,779,006 2021 4,590,000 7,250,056 11,840,056 2022 5,020,000 7,042,775 12,062,775 2023 5,265,000 6,799,869 12,064,869
2024 – 2028 30,660,000 29,763,169 60,423,169 2029 – 2033 38,715,000 22,161,744 60,876,744 2034 – 2038 47,450,000 13,787,497 61,237,497 2039 – 2043 47,690,000 4,593,356 52,283,356
TOTAL $ 187,875,000 106,409,953 294,284,953
The total principal and interest remaining to be paid on all outstanding series of revenue bonds was $294.3 million as of June 30, 2018. These revenue bonds are secured by a covenant to budget and collect revenues in the utility enterprise system sufficient enough to pay the principal and interest requirements. The Town has been in compliance with the covenants for all series of revenue bonds, which require the debt service coverage for parity indebtedness (revenue bonds only) to be 1.200 and for all indebtedness to be 1.000. Financial information below is from the Utility System Enterprise Fund. Unrestricted net position is prior to internal service adjustment. Net Income $ 20,883,882 Adjustments: Depreciation Expense 18,120,833 Water & Sewer Development Fees (11,517,606) Reimbursements (93,645) Sale of Capital Assets (95,201) Bond Interest Expense 9,975,323 Bond Service Expenses & Refunding Loss 1,185,765 Payment to General Fund for Open Space 822,264 Administrative Costs Paid to the Other Funds 3,572,336 Income Available for Debt Service 42,853,951 15% of Unrestricted Net Position 36,755,220 Total Sources Available for Debt Service $ 79,609,171
Coverage Parity Debt Service (Revenue Bonds Only) 11,907,118 6.686 Other Utility Debt Service (gross of partner reimbursement) 12,606,937 Total Debt Service $ 24,514,055 1.748
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Note 9 LONG-TERM OBLIGATIONS E. REFUNDINGS AND REFINANCINGS The Town has defeased numerous Utility Systems Bonds over the years by placing the proceeds of the new bonds in an irrevocable trust to provide for future debt service payments on the old bonds. Accordingly, all related trust account assets and liabilities for the defeased bonds are not included in the Town’s financial statements. In June 2009, the Town issued $40 million in Refunding, Series 2009 bonds, which refunded the Park & Recreation Facilities, Series 1996 and Series 1998, a portion of the Public Improvement, Series 2001 and Water Bonds, Series 2001. The Series 1996 and 1998 bonds were fully called on July 1, 2009, qualifying as a current refund during fiscal year 2009. A portion of the Public Improvement, Series 2001 and Water Bonds, Series 2001 were advanced refunded. The reacquisition price on these defeased bonds exceeded the carrying value of the old debt in the amount of $3.8 million, resulting in a refunding loss with an unamortized balance at June 30, 2018, of $91,901 for Governmental-type and $257,258 for Business-type for a total of $349,159 to be amortized over the remaining life of the bonds. The Town completed this refunding to reduce its total debt service payments and to obtain an economic gain (the difference between the present values of the old debt and new debt service payments) of $2.7 million, of which $.9 million is Governmental-type savings and $1.8 million is Business-type savings.
In June 2010, the Town issued $10.2 million in General Obligation Public Improvement Refunding Bonds, Series 2010A, which refunded a portion of the Public Improvement Bonds, Series 2001 and Water Bonds, Series 2001. $.9 million of this debt is Governmental and the remaining $9.3 million is Business-Type Activities. The bonds were advanced refunded and were redeemed on March 1, 2011. The advance refunding resulted in a net present value savings of $.6 million for the Town of which $55,000 is Governmental Activities savings and $.5 million is Business-Type Activities savings. The reacquisition price on these defeased bonds exceeded the carrying value of the old debt in the amount of $561,000, resulting in a refunding loss with an unamortized balance at June 30, 2018 of $137,756 for Business-Type Activities and $25,069 for Governmental Activities, to be amortized over the remaining life of the bonds. In addition, in June 2010, the Town issued $15.2 in Limited Obligation Refunding Bonds, Series 2010 to refund a portion of the Certificates of Participation, Series 2002A and all of the remaining Series 2002B. The Series 2002B were fully called on June 15, 2010, and the Series 2002A were called on December 1, 2012. The refunding resulted in a net present value savings of $.8 million all Governmental Activities savings. The reacquisition price on the defeased bonds exceeded the carrying value of the old debt in the amount of $.3 million, resulting in a refunding loss with an unamortized balance at June 30, 2018, of $76,250 Governmental Activities, to be amortized over the remaining life of the bonds. In October, 2010, the Town issued $14.7 million in General Obligation Public Improvement Refunding Bonds, Series 2010B, which refunded a portion of the Public Improvement Bonds, Series 2003. The bonds were advanced refunded and were redeemed on June 1, 2013. The advance refunding resulted in a net present value savings of $.6 million all Governmental Activities savings. The reacquisition price on these defeased bonds exceeded the carrying value of the old debt in the amount of $1.5 million, resulting in a refunding loss with an unamortized balance at June 30, 2018 of $.5 million Governmental Activities, to be amortized over the remaining life of the bonds. In February 2012, the Town issued $11.3 million in Limited Obligation Refunding Bonds, Series 2012 to refund $10.9 million (all but the FY 2013 portion of the Certificates of Participation, Series 2002A). The Series 2002A were called on December 1, 2012. The refunding resulted in a net present value savings of $.8 million all Governmental Activities savings. The reacquisition price on the defeased bonds exceeded the carrying value of the old debt in the amount of $.2 million, resulting in a refunding loss with an unamortized balance at June 30, 2018 of $49,160 Governmental Activities, to be amortized over the remaining life of the bonds. The Town refunded a portion of the 2004 revenue bonds when the Town issued the Combined Enterprise System Revenue and Revenue Refunding Bonds, Series 2013. As part of this transaction, the Town issued $12.7 million of utility system revenue bonds to advance refund $14.1 million of the 2004 revenue bonds. This advance refunding resulted in a net present value savings of $1.8 million for the Town. The reacquisition price on these defeased bonds exceeded the carrying value of the old debt in the amount of $1.1 million, resulting in a refunding loss with an unamortized balance at June 30, 2018 of $0. The remaining 2004 Revenue Bonds were called on 12/1/14 and the trust accounts have been closed. In March 2015, the Town refunded a portion of the 2007 revenue bonds when the Town issued the Combined Enterprise System Revenue and Revenue Refunding Bonds, Series 2015. The Town issued $15.8 million of utility system revenue bonds to advance refund $16.1 million of the 2007 revenue bonds that were eligible to be refunded. The advance refunding resulted in a net present value savings of $1.3 million for the Town. The reacquisition price on the defeased bonds exceeded the carrying value of the old debt in the amount of $1.4 million, resulting in a refunding loss with an unamortized balance at June 30, 2018 of $1 million for Business-Type Activities. The 2007 Revenue Bonds that were eligible to be advanced refunded were called on December 1, 2017. In February 2016, the Town issued $25.9 million in General Obligation Public Improvement Refunding Bonds, Series 2016A, which refunded a portion of the Public Improvement Bonds, Series 2009. $13.7 million of this debt is governmental and the remaining $12.2 million is business-type. The bonds were advanced refunded and will be redeemed on June
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Note 9 LONG-TERM OBLIGATIONS E. REFUNDINGS AND REFINANCINGS (Continued) 1, 2019. The advance refunding resulted in a net present value savings of $.8 million for the Town of which $.4 million is Governmental-type savings and $.4 million is Business-type savings. The reacquisition price on these defeased bonds exceeded the carrying value of the old debt in the amount of $.8 million, resulting in a refunding loss with an unamortized balance at June 30, 2018 of $0 due to the refunding of these bonds. The Series 2016A bonds were redeemable at anytime and in October 2017, the Town refinanced the entire outstanding balance of $25.61 million when issuing the General Obligation Refunding Bonds, Series 2017B.
In October 2017, the Town advanced refunded a portion of the 2009 public improvement bonds and current refunded all of the Series 2016A refunding bonds when the Town issued $28.185 million of General Obligation Refunding Bonds, Series 2017B. This refunding resulted in net present value savings of $1.3 million for the Town with $.7 million in savings for Governmental Activities and $.6 million in savings for Business-Type Activities. The reacquisition price on these defeased bonds exceeded the carrying value of the old debt in the amount of $594,211 resulting in a refunding loss with an unamortized balance at June 30, 2018 of $294,248 Governmental Activities and $262,826 Business-Type Activities. The remaining 2009 public improvement bonds will be called on June 1, 2019. In advance of federal legislation taking effect in January 2018 which would no longer allow advance refunding of municipal bonds, the Town refunded the 2007 bonds that were callable on December 1, 2017 and advanced refunded a large portion of the Series 2013 revenue bonds. The Town issued $92.925 million of Combined Enterprise Utility System Revenue Refunding Bonds, Series 2017B which resulted in $6.3 million in net present value savings for Business-Type Activities. The refunding resulted in a gain of $536,136 with an unamortized balance at June 30, 2018 of $523,904 for Business-Type Activities. F. DEFERRED CHARGE ON DEBT REFINANCINGS Due to numerous refinancing opportunities, the Town has incurred accounting losses, which are deferred at the time of the loss and amortized over time. This deferred charge is shown on the statements as a deferred outflow of resources. Details for each activity are as follows: Governmental
Activities Business-Type
Activities Balance June 30, 2017 $ 1,384,564 2,127,208
Loss Due to Current Year Refinancing (53,961) (584,197) Current Year Amortization (280,886) (401,085)
Ending Balance at June 30, 2018 $ 1,049,717 1,141,926
G. DEPARTMENT OF HOUSING & URBAN DEVELOPMENT – SECTION 108 LOAN The Town entered into a Purchase and Development Agreement ('PDA') agreement with Momento Mori, LLC ('MM,LLC') on October 26, 2012 pursuant to which the Town sold property to MM, LLC for the construction of a hotel for economic development including jobs and capital investment in Cary's downtown. Under the PDA the Town financed the purchase price of $951,350 for the property sold and loaned to MM, LLC, $1.4 million which the Town secured through a $1.4 million Section 8 loan from the US Department of Housing and Urban Development (HUD). Both Town loans are secured by mortgages on the property and the $1.4 million loan has personal guarantees and a blanket lien on personal property through Uniform Commercial Code filings wtih the North Carolina Secretary of State. This arrangement created both an accounts receivable with MM, LLC. and a long term liability with HUD. Subsequent to June 30, 2018, Momento Mori, LLC. filed Chapter 11 bankruptcy protection. Based on an appraisal of the property, the property value exceeds the value of all secured loans, including the Town's secured loans. The Town will pursue collection of these receivables in full as a creditor of MM, LLC, however to remain consistent with the Town's conservative financial management and transparent reporting practices, the Town has recorded an allowance of $1.6 million for the HUD loan with interest and $1.2 million for the land loan with interest. As part of the loan agreement the Town will be required to use its future CDBG entitlement to repay the outstanding loan amount to HUD or fund the loan through an appropriation. The total amount due to HUD as of June 30, 2018 is $1.3 million. See Notes 4 and 17 for additional details. Both the long-term liability and long-term receivable are recorded in the entity-wide statements for governmental activities.
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Note 9 LONG-TERM OBLIGATIONS H. STATE REVOLVING LOAN During fiscal year 2004, the Town entered into a State Revolving Loan (SRL) to finance a biosolids dryer project. The draws for this loan were finalized during fiscal year 2007 for a total principal amount of $10.2 million at a fixed interest rate of 2.42%. Repayment of this loan commenced on May 1, 2007, with annual principal and semi-annual interest payments through May 1, 2026. At June 30, 2018, the outstanding balance is $4.1 million. During fiscal year 2005, the Town entered into a State Revolving Loan to finance the planning, permitting, a portion of the design and other projects related to the new Western Wake Regional Wastewater Management Facility (WWRWMF). The initial loan was approved at $5 million; however the loan draws were finalized during fiscal year 2007 based on actual costs for a total principal of $4 million at a fixed interest rate of 2.205%. Repayment of the loan commenced during fiscal year 2008 and will continue through fiscal year 2027. Although this loan is the Town’s debt, the Town has an interlocal agreement with the Town of Apex to pay a portion of the debt service (principal and interest) equal to their proportionate share of the project. There was also an interlocal agreement with the Town of Holly Springs to pay their proportionate share of the loan, however Holly Springs withdrew from the project and a settlement agreement was approved by Council at the February 13, 2013 meeting. A portion of the settlement payment made by Holly Springs was pre-payment of their liability for future state revolving fund loan payments. The Town applied the funds of $.3 million in May of 2013 against the principal of the loan and reduced Holly Springs’ liability to zero. The principal amount has been recorded as a long-term receivable and will be netted against the SRL long-term liability on the face of the financial statements. At June 30, 2018, the outstanding balance is $1.1 million (net of $.53 million partner receivable). In February 2011, the Town received a State Revolving Loan for $1 million which was the balance of the $5 million State Revolving Loan that was approved in 2005, but not fully distributed at that time. The interest rate is 2.205% with payments over 20 years and the first payment was due in May 2012. Like the original loan, the Town of Apex will pay a portion of the debt service (principal and interest) equal to their proportionate share of the project. At June 30, 2018, the outstanding balance is $.45 million (net of $.2 million partner receivable). In April 2011, the Town formally accepted a $35 million State Revolving Loan to finance a portion of the construction of the WWRWMF. Repayment is over a 20 year period, with an interest rate of 2.22% and principal and interest payments began in May 2015. As of June 30, 2018, the outstanding balance is $28 million with all $35 million in loan draws completed. In January 2013, the Town formally accepted a $2.7 million State Revolving planning loan to finance the design for the expansion of the Cary/Apex Water Treatment Plant from 40 million gallons per day to 56 million gallons per day. In August 2015, the loan amount was reduced by $.2 million to $2.5 million as all design payments were made and the final draw on the loan was not completed. The planning loan will be repaid over a 5 year period, with a zero percent interest rate and the principal payments began in May 2014. As of June 30, 2018, the balance on the loan is $0 with the final payment being made on May 1, 2018. State revolving loan debt service requirements to maturity are as follows:
Year Ending Biosolids Dryer 2005 WWRWMF #1 2011 WWRWMF #2 2011 Construction Total SRL June 30 Principal Interest Principal Interest Principal Interest Principal Interest Principal Interest 2019 $ 511,161 98,961 178,734 35,470 52,061 14,923 1,750,000 621,600 2,491,956 770,954 2020 511,161 86,591 178,734 31,529 52,061 13,775 1,750,000 582,750 2,491,956 714,645 2021 511,161 74,221 178,734 27,588 52,061 12,628 1,750,000 543,900 2,491,956 658,337 2022 511,161 61,851 178,734 23,647 52,061 11,480 1,750,000 505,050 2,491,956 602,028 2023 511,161 49,480 178,734 19,705 52,061 10,332 1,750,000 466,200 2,491,956 545,717
2024 - 2028 1,533,483 74,221 714,937 39,411 260,308 34,439 8,750,000 1,748,250 11,258,728 1,896,321 2029 - 2033 -- -- -- -- 156,185 6,888 8,750,000 777,000 8,906,185 783,888 2034 - 2038 -- -- -- -- -- -- 1,750,000 38,350 1,750,000 38,350
Sub-total 4,089,288 445,325 1,608,607 177,350 676,798 104,465 28,000,000 5,283,100 34,374,693 6,010,240 Interlocal Agreements -- -- (525,170) (57,244) (230,788) (35,622) -- -- (755,958) (92,866)
TOTAL $ 4,089,288 445,325 1,083,437 120,106 446,010 68,843 28,000,000 5,283,100 33,618,735 5,917,374
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Note 9 LONG-TERM OBLIGATIONS
I. CHANGES IN LONG-TERM LIABILITIES
Beginning Balance Additions Refunded Reductions Ending Balance
Amounts due within one year
GOVERNMENTAL ACTIVITIES Bonds & Notes Payable: General Obligation Debt $ 92,534,305 46,257,965 (16,652,607) (9,751,604) 112,388,059 9,886,132 Limited Obligation Bonds 14,605,000 -- -- (2,520,000) 12,085,000 2,480,000 Installment Financing Agreements 151,828 -- -- (151,828) -- -- Total Bonds & Loans Payable 107,291,133 46,257,965 (16,652,607) (12,423,432) 124,473,059 12,366,132 Deferred Adjustments: Premium 4,345,649 4,210,255 (186,102) (787,685) 7,582,117 -- Total Bonds & Notes Payable, Net 111,636,782 50,468,220 (16,838,709) (13,211,117) 132,055,176 12,366,132 Other Liabilities: Capital Leases 1,639,470 850,457 -- (967,214) 1,522,713 746,477 Compensated Absences 5,711,270 4,970,625 -- (4,677,982) 6,003,913 4,597,030 Unfunded OPEB Liability, restated 118,736,973 298,478 -- -- 119,035,451 -- Workers' Compensation Long-Term Reserve 3,129,971 797,906 -- (1,627,877) 2,300,000 2,300,000 Health Insurance Long-Term Reserve 1,465,652 14,290,863 -- (14,996,515) 760,000 760,000 Small Claims Reserve 560,352 537,856 -- (808,696) 289,512 289,512 Development Fee Credits 4,030,099 110,950 -- (590,754) 3,550,295 156,000 Net Pension Liability (LGERS) 25,178,178 -- -- (7,180,297) 17,997,881 -- Law Separation Allowance Unfunded Pension Liability 9,565,025 1,355,488 -- -- 10,920,513 -- HUD 108 CDBG Loan 1,400,000 -- -- (66,000) 1,334,000 67,000 Other Long Term Agreements 870,245 3,606,361 -- (1,523,787) 2,952,819 1,319,336 Total Other Liabilities 172,287,235 26,818,984 -- (32,439,122) 166,667,097 10,235,355 Governmental Activities Long-Term Liabilities $ 283,924,017 77,287,204 (16,838,709) (45,650,239) 298,722,273 22,601,487
The beginning balance does not agree to the ending balance for fiscal year 2017 due to the implementation of GASB 75 related to Other Post Employment Benenfits (OPEB). For fiscal year 2017, the ending long term liability was $60.4 million. The implementation of GASB 75 required a prior period adjustment of $56.4 million, which also included an adjustment related to deferred outflows in the amount of $1.6 million. Since governmental funds are the internal service funds primary customer, the long-term liabilities for them are included as part of the above totals for governmental activities. At year-end governmental long-term liabilities include the following for the Fleet Management Internal Service Fund; $65,000 for compensated absences, $1.5 million for other post- employment benefits, and $206,000 for Fleet’s portion of the LGERS pension liability, as well as $.8 million of the Health Insurance Internal Service Fund long-term reserve for insurance claims. With the exception of Development Fee Credits (discussed below) and the HUD 108 CDBG Loan (discussed in Note 9.G), the majority of the remainder of the governmental liabilities will be satisfied by the General Fund, with $5,000 of the long-term agreement being satisfied by the Emergency Telephone Special Revenue Fund. The Town enters into numerous developer agreements throughout the year, which award developers credits toward future fees based on their contributions to the Town’s street infrastructure system. These credits are calculated and specifically identifiable in each agreement and are recorded as long-term liabilities in the entity-wide financial statements. Usage of credits is tracked through the general receipting and permitting system of the Town, and credits are written off as they expire per individual contractual agreements. Of the $590,000 reduction in the current year, $414,000 relate to expired agreements. As credits are used, revenue is also recorded in the entity-wide financial statements for governmental activities.
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Note 9 LONG-TERM OBLIGATIONS
I. CHANGES IN LONG-TERM LIABILITIES (Continued)
Beginning Balance Additions Refunded Reductions Ending Balance Amounts due within
one year BUSINESS-TYPE ACTIVITIES Bonds & Notes Payable – Utility System: General Obligation Debt $ 72,256,697 13,592,036 (14,868,393) (6,013,397) 64,966,943 5,988,868 Revenue Bonds 191,105,000 92,925,000 (92,175,000) (3,980,000) 187,875,000 4,135,000 State Revolving Loans, net 36,508,976 -- -- (2,890,241) 33,618,735 2,416,513 Total Bonds & Loans Payable 299,870,673 106,517,036 (107,043,393) (12,883,638) 286,460,678 12,540,381 Deferred Adjustments: Discount (8,470) -- 8,236 234 -- -- Premium 22,999,310 10,840,820 (10,100,207) (1,500,455) 22,239,468 -- Total Bonds & Notes Payable, Net 322,861,513 117,357,856 (117,135,364) (14,383,859) 308,700,146 12,540,381 Other Liabilities – Utility System: Compensated Absences 1,251,571 1,102,744 -- (973,251) 1,381,064 1,079,025 Unfunded OPEB Liability, restated 27,306,231 68,641 -- -- 27,374,872 -- Development Fee Credits 3,412,047 -- -- (220,370) 3,191,677 206,000 Net Pension Liability (LGERS) 2,608,917 -- -- (1,096,400) 1,512,517 -- Durham Water Liability 262,000 -- (262,000) -- -- -- Other Long Term Agreements 365,200 -- -- (159,500) 205,700 159,500 Total Other Liabilities 35,205,966 1,171,385 (262,000) (2,449,521) 33,665,830 1,444,525 Business-Type Activities Long-Term Liabilities $ 358,067,479 118,529,241 (117,397,364) (16,833,380) 342,365,976 13,984,906
All business-type liabilities will be liquidated by the Utility Systems Enterprise Fund. The beginning balance does not agree to the ending balance for fiscal year 2017 due to the implementation of GASB 75 related to Other Post Employment Benenfits (OPEB). For fiscal year 2017, the ending long term liability was $11.8 million. The implementation of GASB 75 required a prior period adjustment of $15.2 million, which also included an adjustment related to deferred outflows in the amount of $.4 million. The Town enters into numerous developer agreements throughout the year, which award developers credits toward future fees based on their contributions to the Town’s utility infrastructure system (water, sewer and reclaimed). These credits are calculated and specifically identifiable in each agreement and are recorded as long-term liabilities in both the entity-wide and fund financial statements. Usage of credits is tracked through the general receipting and permitting system of the Town, and credits are written off as they expire per individual contractual agreements. As credits are used, revenue is also recorded. Discussion on liabilities related to LGERS and OPEB can be found in notes 12.A and 12.E, respectively.
J. AUTHORIZED UNISSUED BONDS AND LEGAL DEBT MARGIN The Town is subject to the Local Government Bond Act of North Carolina, which limits the amount of net bonded debt the Town may have outstanding to 8 percent of the appraised value of property subject to taxation. At June 30, 2018, such statutory limit for the Town was $2.1 billion providing a legal debt margin of approximately $1.9 billion. The Town does not intend to extend its debt to any amount near the legal debt limit. At June 30, 2018, the Town had authorized but not issued general obligation bonds of $13.7 million, $1.8 million, and $.5 million, designated for streets, parks/recreational facilities and fire facilities respectively for a total of $16 million.
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Note 10 ACCOUNTS PAYABLE, AND OTHER ACCRUED LIABILITIES Accounts payable and other accrued liabilities as of year-end for the Town’s individual major funds in the aggregate as presented in the fund financials and entity-wide statements are as follows:
General Capital Projects Special
Revenue
Total Governmental
Funds Full Accrual Adjustment
Entity-Wide Governmental
Activity
Business-type Activities
(Utility System) Salaries and employee benefits $ 4,793,837 -- 7,409 4,801,246 16,812 4,818,058 245,819 Due to other governments 4,380,985 -- -- 4,380,985 -- 4,380,985 -- Due to Vendors 3,018,168 8,657,955 741,498 12,417,621 208,391 12,626,012 7,601,364 Miscellaneous 383,741 1,086,324 -- 1,470,065 -- 1,470,065 122,417 $ 12,576,731 9,744,279 748,907 23,069,917 225,203 23,295,120 7,969,600
The governmental amount for the Special Revenue Funds is comprised of approximately $27,000 for the CDBG Fund and $722,000 for the Transit Fund. The full accrual adjustment represents the Fleet Management Internal Service Fund accounts payable and accrued liabilities. For presentation purposes, the accounts payable portion of the worker’s compensation and small claims liability is included with the long-term liabilities on the Entity-Wide financial statements and in the supporting note. Note 11 RISK MANAGEMENT The Town is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; on-the-job injuries to employees; and natural disasters. The Town administers three self-funded programs that cover small claims and losses, employee, spouse and dependent health and dental claims, and workers' compensation. The Town contracted with a third-party to perform an actuarial valuation for an estimate of claims incurred, but not reported for workers compensation and health and dental as of June 30, 2018. Workers' Compensation – The Town is self-insured for statutory workers’ compensation coverage with a retention per occurrence of $.6 million for all employee classifications, a maximum limit of indemnity per occurrence of $1 million, and a maximum limit of indemnity of $1 million for aggregate claims losses. Based on historical trends, the third party administrator and actuarial information from the prior year, a reserve of $2.3 million was calculated as of June 30, 2018, for claims incurred but not reported and for items reported but not paid. $214,000 of this liability is considered a current liability within the fund financials; however, it is included in long-term liabilities for readability purposes. The full amount of the liability is estimated to be paid within the next fiscal year and included in the current portion of long-term liabilities within the entity wide statements. Small Claims and Losses - The Town self-funds small claims and losses incurred during the year that fall below the Town's insurance deductible. Claims are administered by an internal Risk Manager. Based on historical data and information available, management estimated and reserved $.3 million for claims incurred but not reported and for claims reported but not paid. $64,000 of this liability is considered a current liability within the fund financials; however, it is included in long-term liabilities for readability purposes. The full amount of the liability is estimated to be paid within the next fiscal year and included in the current portion of long-term liabilities within the entity wide statements. Health and Dental Claims – Since fiscal year 2003, the Town has self-funded health and dental coverage for all permanent employees, which is handled by a third party administrator. Employees can also pay a portion of the premium to add a spouse or dependent(s). These claims are also administered by the third party administrator. Based on the information available, the third party administrator and actuarial information from the prior year a reserve of $.8 million was calculated, as of June 30, 2018 for health claims incurred but not reported and for items reported but not paid. A reserve of $60,000 was calculated for dental claims incurred but not reported and for items reported but not paid. $1.2 million (of which $49,000 relates to dental) is considered a current liability within the fund financials; however, it is included in long-term liabilities for readability purposes. The full amount of the liability is estimated to be paid within the next fiscal year and included in the current portion of long-term liabilities within the entity wide statements. All reserves and estimated claims reported but not paid and incurred but not recorded are accrued and reported within the General Fund and the Health Insurance Internal Service Fund in the fund financials and in governmental activities in the entity-wide financials.
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Note 11 RISK MANAGEMENT The following is a reconciliation of changes in liabilities for claims from amounts reported June 30, 2016 to the current fiscal year ended June 30, 2018: ?
Workers’ Compensation
Small Claims and Losses
Dental Claims
Health Claims Total
Balance June 30, 2016 $ 2,900,000 360,922 60,000 1,180,000 4,500,922 Claims reported and changes in estimates for FY 2017 1,583,492 831,191 1,327,229 15,090,652 18,832,564 Claims paid in FY 2017 (1,353,521) (631,761) (1,317,624) (14,874,605) (18,177,511) Balance June 30, 2017 3,129,971 560,352 69,605 1,396,047 5,155,975 Claims reported and changes in estimates for FY 2018 797,906 537,856 1,486,879 12,803,984 15,626,625 Claims paid in FY 2018 (1,627,877) (808,696) (1,496,484) (13,500,031) (17,433,088) Balance June 30, 2018 $ 2,300,000 289,512 60,000 700,000 3,349,512
The Town provides for property and liability coverage through comprehensive third party insurance policies. The Town’s property and liability coverage at June 30, 2018 are as follows: Property Coverage Coverage
Liability Coverage Limits
Property Insurance – Building and Contents $ 614,203,710 Extra coverage for Town Hall and Operations Center 1,000,000 Communication Equipment 2,051,261 Highway Dept Equipment 5,331,728 Leased Equipment 400,000 General and Automobile Liability 1,000,000 Excess Liability 9,000,000 Tort Liability for Public Officials, Law Enforcement and Employment Practices
3,000,000
Workers’ Compensation Statutory Per Retention per Accident and/or Disease 600,000 Employers’ Liability per occurrence 1,000,000 Aggregate Retention 1,000,000 Deductibles are established at appropriate levels as determined by management and an independent insurance consultant. For fiscal year 2018, the self-insured retention was $25,000 per incident for automobile catastrophic damage, $100,000 per claim for Public Officials and $100,000 per claim for Law Enforcement and Employment practices, and deductibles for other damages ranged from $5,000 to $10,000 per year. The Town’s Chief Financial Officer, Assistant Finance Director, Wake County’s and Chatham County's Tax Collectors and Revenue Collectors are covered by individual bonds of $100,000 each. The Town carries no separate flood insurance.
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Note 12 PENSION PLAN and OPEB OBLIGATIONS A. LOCAL GOVERNMENT EMPLOYEES’ RETIREMENT SYSTEM Plan Description: The Town is a participating employer in the statewide Local Governmental Employees’ Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of North Carolina. LGERS membership is comprised of general employees and local law enforcement officers (LEOs) of participating local governmental entities. Article 3 of General Statute Chapter 128 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex-officio members. LGERS is included in the Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. The State’s CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, or by visiting their website at www.osc.nc.gov. Benefits Provided: LGERS provides retirement and survivor benefits. Retirement benefits are determined as 1.85% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service (age 55 for firefighters). Survivor benefits are available to eligible beneficiaries of members who die while in active service or within 180 days of their last day of service and who have either completed 20 years of creditable service regardless of age (15 years of creditable service for firefighters and rescue squad members who are killed in the line of duty) or have completed five years of service and have reached age 60. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. The plan does not provide for automatic post-retirement benefit increases. Increases are contingent upon actuarial gains of the plan. LGERS plan members who are LEOs are eligible to retire with full retirement benefits at age 55 with five years of creditable service as an officer, or at any age with 30 years of creditable service. LEO plan members are eligible to retire with partial retirement benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits are available to eligible beneficiaries of LEO members who die while in active service or within 180 days of their last day of service and who also have either completed 20 years of creditable service regardless of age, or have completed 15 years of service as a LEO and have reached age 50, or have completed five years of creditable service as a LEO and have reached age 55, or have completed 15 years of creditable service as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive a monthly Survivor’s Alternate Benefit for life or a return of the member’s contributions. Contributions: Contribution provisions are established by General Statute 128-30 and may be amended only by the North Carolina General Assembly. Town employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Town’s contractually required contribution rate for the year ended June 30, 2018, was 8.25% of compensation for law enforcement officers and 7.55% for general employees and firefighters, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. The Town’s contributions to LGERS for the years ended June 30, 2018, 2017 and 2016 were $6.1, $5.9 and $5.0 million, respectively. The contributions made by the Town equaled the required contributions for each year. Refunds of Contributions: Town employees who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By state law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At June 30, 2018, the Town reported a liability of $19.5 million for its proportionate share of the net pension liability ($18 million governmental, $1.5 million business-type). The net pension liability was measured as of June 30, 2017. The total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2016. The total pension liability was then rolled forward to the measurement date of June 30, 2017 utilizing update procedures incorporating the actuarial assumptions. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of future payroll covered by the pension plan, relative to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2017, the Town’s proportion was 1.28%, which was an decrease of .03% from its proportion measured as of June 30, 2016.
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Note 12 PENSION PLAN and OPEB OBLIGATIONS A. LOCAL GOVERNMENT EMPLOYEES’ RETIREMENT SYSTEM (Continued) For the year ended June 30, 2018, the Town recognized pension expense of approximately $.3 million ($.2 million governmental, $.1 million business-type). At June 30, 2018, the Town reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Deferred Outflows of Resources
Deferred Inflows of Resources
Differences Between Expected and Actual Experience $ 1,123,980 (552,278) Changes of Assumptions 2,786,355 -- Net Difference Between Projected and Actual Earning on Pension Plan Investments 4,737,148 -- Changes in Proportion and Differences Between Town Contributions and Proportionate Share of Contributions -- (687,802) Town Contributions Subsequent to the Measurement Date 6,139,890 -- $ 14,787,373 (1,240,080)
$6.1 million reported as deferred outflows (listed above) resulted from Town contributions made subsequent to the measurement date of June 30, 2017. This will be recognized as a decrease to the net pension liability in fiscal year 2019. Other amounts reported as deferred outflows/(inflows) will be recognized as an addition to pension expense as follows: Expense Adjustment
Fiscal Year Debit(Credit) 2019 $ 766,596 2020 5,451,669 2021 2,694,313 2022 (1,505,175) 2023 --
Thereafter -- Total $ 7,407,403
Actuarial Assumptions: The total pension liability in the December 31, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.0% Salary Increases
3.50 – 8.10%, including inflation and productivity factor
Investment rate of return
7.20%, net of pension plan investment expense, including inflation
The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portion of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2016 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through December 31, 2014. Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement.
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Note 12 PENSION PLAN and OPEB OBLIGATIONS A. LOCAL GOVERNMENT EMPLOYEES’ RETIREMENT SYSTEM (Continued) The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 2017 are summarized in the fol lowing table: Asset Class
Target Allocation
Long-Term Expected Real Rate of Return
Fixed Income 29.0% 1.4% Global Equity 42.0 5.3 Real Estate 8.0 4.3 Alternatives 8.0 8.9 Credit 7.0 6.0 Inflation Protection 6.0 4.0 100.0%
The information above is based on 30 year expectation developed with the consulting actuary for the 2016 asset, liability, and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long-term inflation assumption of 3.0%. All rates of return and inflation are annualized. Discount Rate: The discount rate used to measure the total pension liability was 7.20%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the 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 Town’s Proportionate Share of the Net Pension Asset to Changes in the Discount Rate: The table below presents the Town’s proportionate share of the net pension asset calculated using the discount rate of 7.20%, as well as what the Town’s proportionate share of the net pension asset/liability would be if it were calculated using a discount rate that is one percentage point lower (6.20%) or one percentage point higher (8.20 percent) than the current rate:
1% Decrease
(6.20%) Discount Rate
(7.20%) 1% Increase
(8.20%)
Town’s Proportionate Share of the Net Pension Asset (Liability) $ (58,570,655) (19,510,398) 13,092,586 Pension Plan Fiduciary Net Position: Detailed information about the pension plan’s fiduciary net position is available in the separately issued CAFR for the State of North Carolina.
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS B. LAW ENFORCEMENT OFFICERS SPECIAL SEPARATION ALLOWANCE Plan Description - The Town of Cary administers a public employee retirement system (the “Separation Allowance”), a single-employer defined benefit pension plan that provides retirement benefits to the Town’s qualified sworn law enforcement officers under the age of 62 who have completed at least 30 years of creditable service or have attained 55 years of age and completed five or more years of creditable service. The Separation Allowance is equal to .85 percent of the annual equivalent of the base rate of compensation most recently applicable to the officer for each year of creditable service. The retirement benefits are not subject to any increases in salary or retirement allowances that may be authorized by the General Assembly. Article 12D of G.S. Chapter 143 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. The plan does not issue a separate standalone financial report. All full-time law enforcement officers of the Town are covered by the Separation Allowance. At December 31, 2016, the Separation Allowance’s membership consisted of: Retirees receiving benefits 22 Terminated plan members entitled to but not yet receiving benefits -- Active plan members 188 Total 210
Summary of Significant Accounting Policies - The Town has chosen to fund the Separation Allowance on a pay-as-you-go basis. Pension expenditures are made from the General Fund, which is maintained on a modified accrual basis of accounting. Benefits and refunds are recognized when due and payable in accordance with the terms of the plan. The Separation Allowance has no assets accumulated in a trust that meets the criteria outlined in GASB Statement 73, which states that contributions and earnings of the plan must be irrevocable, pension assets must be dedicated to providing benefits to plan members, and assets are legally protected from the creditors and other parties. Although the Town does dedicate funds by segregating these activities in a separate sub-fund of the General Fund for accounting purposes, since the assets are not invested in a qualifying trust, they must be presented and recorded as part of General Fund activity and cannot be considered in the actuarial valuation that calculates the long-term liability. Fund balance related to this sub-fund is considered committed and displayed as such on the governmental fund balance sheet. Investments related to these committed funds are handled in accordance with standard investment practices of the Town. Actuarial Assumptions – The entry age actuarial cost method was used in the December 31, 2016 valuation. This method allocates the actuarial present value of each member's projected benefits on a level basis over the member's compensation between the entry age of the member and the expected exit age. The total pension liability in the December 31, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.50% Salary Increases 3.50% to 7.35%, including inflation Discount rate 3.16%
The discount rate is based on the yield of the S&P Municipal Bond 20 Year High Grade Rate Index as of December 31, 2016. Mortality rates are based on the RP-2015 Mortality tables.
Contributions – The Town is required by Article 12D of G.S. Chapter 143 to provide these retirement benefits and has chosen to fund the amounts necessary to cover the benefits earned on a pay as you go basis through appropriations made in the General Fund operating budget. There were no contributions made by employees. The Town’s obligation to contribute to this plan is established and may be amended by the North Carolina General Assembly. The Town paid $.5 million as benefits came due for the reporting period.
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS B. LAW ENFORCEMENT OFFICERS SPECIAL SEPARATION ALLOWANCE (Continued) Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At June 30, 2018, the Town reported a total pension liability of $10.9 million. The total pension liability was measured as of December 31, 2017 based on a December 31, 2016 actuarial valuation. The total pension liability was then rolled forward to the measurement date of December 31, 2017 utilizing update procedures incorporating the actuarial assumptions. For the year ended June 30, 2018, the Town recognized pension expense of $.1 million. Deferred Outflows of
Resources Deferred Inflows of
Resources Differences between expected and actual experience $ 458,021 $ -- Changes of assumptions and other inputs 502,277 (158,399) Benefit payments and administrative expenses subsequent to the measurement date
304,980 --
Total $ 1,265,278 $ (158,399)
$304,980 reported as deferred outflows of resources related to pensions resulting from benefit payments made and adminstrative expenses incurred subsequent to the measurement date will be recognized as a decrease of total pension liability in the year ended June 30, 2019. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended June 30: 2019 $ 155,694 458,021 2020 155,694 2021 155,694 2022 155,694 2023 179,123 Thereafter -- Total $ 801,899 265,278
Sensitivity of the Town's total pension liability to changes in the discount rate - The following presents the Town's total pension liability calculated using the discount rate of 3.16%, as well as what the Town's total pension liability would be if it were calculated using a discount rate that is 1% point lower (2.16%) or 1% point higher (4.16%) than the current rate: 1% Decrease Current Discount Rate 1% Increase (2.16%) (3.16%) (4.16%) Total Pension Liability $(11,806,130) (10,920,513) (10,105,329)
Schedule of Changes in Total Pension Liability Law Enforcement Officers' Special Separation Allowance
2018 Beginning Balance $ 9,565,025 Service Cost 339,228 Interest on total pension liability 359,635 Changes of benefit terms -- Difference between expected and actual experience in the measurement of the total pension liability
549,809
Changes in assumptions or other inputs 602,934 Benefit payments (496,118) Other changes -- Net Changes 1,355,488 Total Pension Liability as of December 31, 2017 $ 10,920,513
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS B. LAW ENFORCEMENT OFFICERS SPECIAL SEPARATION ALLOWANCE (Continued) The beginning balance and benefit payments made relate to the prior period adjustment in the General Fund as mentioned in Note 9.I. and Note 16. The plan currently uses mortality tables that vary by age, and health status (i.e. disabled and healthy). The current mortaliity rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2015 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through December 31, 2014. Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources Related to Pensions The following information is related to the proportionate share and pension expense for all pension plans: LGERS LEOSSA Total Pension Expense $ 230,533 53,459 283,992 Pension Liability 19,510,398 10,920,513 30,430,911 Proportionate share of the net pension liability 1.28% N/A Deferred Outflow of Resources
Differences between expected and actual experience 1,123,980 458,021 1,582,001 Changes of assumptions 2,786,355 502,277 3,288,632 Net difference between projected and actual earnings on plan investments 4,737,148 -- 4,737,148 Changes in proportion and differences between contributions and proportionate share of contributions -- -- --
Benefit payments and administrative costs paid subsequent to the measurement date 6,139,890 304,980 6,444,870
Deferred Inflow of Resources
Differences between expected and actual experience 552,278 -- 552,278 Changes of assumptions -- 158,399 158,399 Net difference between projected and actual earnings on plan investments -- -- --
Changes in proportion and differences between contributions and proportionate share of contributions 687,802 -- 687,802
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS C. SUPPLEMENTAL RETIREMENT INCOME PLAN (401K and 401A) Plan Description - The Town contributes to the Supplemental Retirement Income Plan (Plan), a defined contribution pension plan administered by the Department of State Treasurer and a Board of Trustees. The Plan provides retirement benefits to all permanent full-time employees, as well as law enforcement officers employed by the Town. All employees, with the exception of law enforcement officers, are given a choice between the plan statutorily defined for officers (401k) and a 401A plan. Article 5 of G.S. Chapter 135 assigns the authority to establish and amend benefit provisions to the North Carolina General Assembly. All employees begin participation at the date of employment. The Supplemental Retirement Income Plan for Law Enforcement Officers is included in the CAFR for the State of North Carolina. The State’s CAFR includes the pension trust fund financial statements for the Internal Revenue Code Section 401(k) plan that includes the Supplemental Retirement Income Plan for Law Enforcement Officers. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, NC 27699-1410, or by calling (919)981-5454. Funding Policy - Article 12E of G.S. Chapter 143 requires the Town to contribute each month an amount equal to five percent of each officer’s salary, and all amounts contributed are vested immediately. The Town makes an equal contribution of 5% of monthly salary to all other permanent employees. Also, all employees may make voluntary contributions to the plan. Contributions for law enforcement officers for the year ended June 30, 2018, were $1.2 million which consisted of $.8 million from the Town and $.4 million voluntary contributions from the law enforcement officers. Contributions for all other employees were $4.4 million, which consisted of $3.2 million from the Town and $1.2 million voluntary contributions from other employees. D. DEATH BENEFIT PLAN The Town has elected to provide death benefits to employees through the Death Benefit Plan for member of LGERS and through group-term life insurance from a private provider. Plan Description - The Death Benefit Plan through LGERS (Death Benefit Plan) is a multiple-employer, State-administered, cost-sharing plan funded on a one-year term cost basis. The beneficiaries of those employees who die in active service after one year of contributing membership in the System, or who die within 180 days after retirement or termination of service and have at least one year of contributing membership service in the System at the time of death are eligible for death benefits. Lump sum death benefit payments to beneficiaries are equal to the employee’s 12 highest month’s salary in a row during the 24 months prior to the employee’s death, but the benefit may not exceed $50,000 or be less than $25,000. For the additional group-term life insurance plan, the Town provides at no cost coverage to all active employees working 20 or more hours per week at one times salary (up to maximum of $250,000). Employees can further elect to participate in various voluntary insurance programs with no cost to the Town. Funding Policy – For the Death Benefit Plan, contributions are determined as a percentage of monthly payroll, based upon rates established annually by the State. Separate rates are set for employees not engaged in law enforcement and law enforcement officers. Because the benefit payments are made by the Death Benefit Plan and not by the Town, the Town does not determine the number of eligible participants. For the fiscal year ended June 30, 2018, the Town made contributions to the State for death benefits of $52,500. The Town’s required contributions for employees not engaged in law enforcement and for law enforcement officers represented .05% and .14% of covered payroll, respectively. The contributions to the Death Benefit Plan cannot be separated between the post-employment benefit amount and the other benefit amount. The contributions to the Death Benefit Plan cannot be separated between the post-employment benefit amount and the other benefit amount. For the additional group-term life insurance plan, the Town funds on a pay-as-you- go basis.
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS E. OTHER POST-EMPLOYMENT BENEFITS (OPEB) Plan Description - The Town administers a single-employer defined benefit healthcare plan (“the health plan”). The Town Council has the authority to establish and amend the benefit terms and financing requirements. No assets are accumulated in a trust that meet the criteria in paragraph 4 of GASB statement 75. Benefits Provided - The health plan provides post-retirement health care benefits to retirees of the Town, provided they meet any of the retirement options available through the North Carolina Local Governmental Employees’ Retirement System (NCLGERS) and reach the 15 year service level of creditable service with the Town. Upon reaching the 15 year service level, the Town will pay 50% of the group plan individual premium and will increase that amount 5% for each additional year of service to the 25 year service level. Healthcare, prescription drugs, pre-65 dental and vision coverage are provided in the health plan. When the eligible retiree has turned 65 and is no longer covered by the health plan, the Town will continue to provide a substantially equal monetary benefit to the post-65 retiree to cover a premium Medicare supplement and the prescription drug plan. If the benefit is higher than the premium, the excess credit is forfeited. In addition to this, a lump sum life insurance benefit of $10,000 is provided to those retirees who have at least 25 years of service at the time of retirement. Dependent or spouse coverage in the health plan must be paid in full by the retiree. A separate report was not issued for the plan. At June 30, 2017, the date of the last actuarial valuation (used in these calculations), membership of the plan consisted of the following: General
Employees Inactive employees or beneficiaries currently receiving benefit payments
260
Active employees 1,190 Total 1,450
Total OPEB Liability The Town's total OPEB liability of $146.4 million ($119 million governmental and $27.4 million business-type) was measured as of June 30, 2017 and was determined by an actuarial valuation date of April 1, 2018. Actuarial assumptions and other inputs - The total OPEB liability in the June 30, 2017 actuarial valuation was determined using the following actuarial assumptions and othe inputs, applied to all periods included in the measurement unless otherwise specified: Inflation 3.75% Salary Increases 4.00% average, including inflation Discount Rate 3.55% Healthcare cost trend rates 6.50% starting 3.50% ultimate The discount rate is based on a the yield of a 20 year Aa Municipal Bond as of the measurement date.
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS E. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) Changes in the Total OPEB Liability
Total OPEB Liability Balance at July 1, 2017 $ 146,043,204 Changes for the year: Service Cost 6,812,380 Interest Cost 4,281,585 Change of benefit terms -- Difference between expected and actual experience 7,224,444 Changes in assumptions or other inputs (15,987,775) Benefit payments (1,963,515) Net Changes 367,119 Balance at June 30, 2018 $ 146,410,323
Changes in assumptions and other inputs reflect a change in the discount rate from 2.95% to 3.55% Mortality rates were based on the RP 2014 Blue Collar projected to 2022 using scale MP 2017. An experience study has not been conducted at the time of issuing the report. Sensitivity of the total OPEB liability to changes in the discount rate - The following presents the total OPEB liability of the Town, as well as, what the Town's total OPEB liability would be if it were calculated using a discount rate 1 percentage point lower (2.55%) or 1 percentage point higher (4.55%) than the current discount rate:
1% Decrease (2.55%)
Current Discount Rate (3.55%) 1% Increase (4.55%)
Total OPEB Liability $ 179,333,136 $ 146,410,323 $ 121,006,645 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates - The following presents the total OPEB liability of the Town, as well as, what the Town's total OPEB liability would be if it were calculated using a healthcare cost trend rate 1 percentage point lower (2.55%) or 1 percentage point higher (4.55%) than the current discount rate:
1% Decrease (Starting 5.50%, ultimate 2.50%)
Current Rate (Starting 6.50%, ultimate 3.50%)
1% Decrease (Starting 7.50%, ultimate 4.50%)
Total OPEB Liability $ 112,628,462 $ 146,410,323 $ 253,583,637
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 12 PENSION PLAN and OPEB OBLIGATIONS E. OTHER POST-EMPLOYMENT BENEFITS (OPEB) (Continued) OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB For the year ended June 30, 2018, the Town recognized OPEB expense of $7.9 million ($6.4 milllion governmental and $1.5 million business-type). At June 30, 2018, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows of Resources
Deferred Inflows of Resources
Differences between expected and actual experience $ 6,421,728 --
Changes of assumptions -- (14,211,356) Benefit payments and administrative costs made subsequent to the measurement date 2,255,216 --
Total $ 8,676,944 (14,211,356)
$2,255,216 reported as deferred outflows of resources related to OPEB resulting from benefit payments made and administrative expenses incurred subsequent to the measurement date will be recognized as a decrease of the total OPEB liability in the year ended June 30, 2019. Other amounts reported as deferred inflows of resources related to OPEB will be recognized in pension expense as follows: Year ended June 30: 2019 $ (973,701) 2020 (973,701) 2021 (973,701) 2022 (973,701) 2023 (973,701) Thereafter (2,921,123) Total $ (7,789,628)
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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Note 13 INTERFUND TRANSFERS A summary of interfund transfers by fund for the year ended June 30, 2018, is as follows: TRANSFERS FROM: Governmental General Transit Fund Special Revenue Fund TOTAL TRANSFERS TO: Governmental: General Fund $ -- 49,000 49,000 Capital Project Fund 24,451,401 -- 24,451,401 Transit Special Revenue 1,778,434 -- 1,778,434 Economic Development Special Revenue 844,000 -- 844,000 Business: Internal Service Funds Fleet 88,782 -- 88,782 Health and Dental 1,342,378 -- 1,342,378 TOTAL $ 28,504,995 49,000 28,553,995
Transfers to the Capital Project Fund are for funding of specific capital needs. Transfers to the Special Revenue Funds are for operations pertaining to those specific purposes. Transfers to the General Fund are for transit services that were originally budgeted in the Transit Fund but actually paid for in the General Fund. Transfers to the Fleet Internal Service Fund are for vehicle replacement due to a Takata airbag recall. Transfers to the Health and Dental Internal Service fund are intended to mitigate future catastrophic losses related to other post employment benefits (OPEB).
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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137
Note 14 NET INVESTMENT IN CAPITAL ASSETS The following table provides detail information regarding the Net Investment in Capital Assets that is presented in the entity-wide financial statements: Governmental
Activities Business-Type
Activities Capital Assets, net of accumulated depreciation $ 888,832,398 827,979,236 Deduct: Debt (net of deferred premium & discount) (132,055,176) (308,700,141) Deferred Refunding Loss 1,049,717 1,141,926 Capital Leases portion related to assets (603,286) -- Developer Fee Credits (3,550,295) (3,191,677) LT Obligations related to Intangible Assets (2,555,729) (136,400) Add: Long-term debt not related to assets 69,697,820 -- Unspent debt proceeds 18,171,294 7,312,549 Net Investment in Capital Assets $ 838,986,743 524,405,493
Note 15 FUND BALANCE The following schedule provides information on the portion of General Fund balance that is available for appropriation: Appropriated in the Fiscal Year 2019 Budget (including approved rollovers) $ 8,809,880 Parks, Recreation & Culture 435,911 Public Safety Operations & Projects 1,305,208 Affordable Housing 546,775 LEO Pension Benefits 2,560,678 Workers’ Compensation 1,811,168 Small Claims Self Insurance 2,354,250 Restricted, Committed or Assigned for Specific Purposes (excluding stabilization) 17,823,870 Unassigned 49,606,737 AVAILABLE FUND BALANCE 67,430,607 Nonspendable 2,136,410 Stabilization by State Statute 18,860,801 TOTAL FUND BALANCE $ 88,427,818
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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138
Note 15 FUND BALANCE (Continued) Nonspendable fund balance includes balances in inventory, prepaid assets and endowments at June 30, 2018. For a breakdown of the Nonspendable portion and of what is restricted, committed and assigned within available fund balance, see detail presented in Exhibit C. Stabilization by State Statute is calculated on all Governmental funds that operate under an annual budget. Outstanding encumbrances of $2.4 million related to the General Fund and $22,000 related to the Transit Special Revenue Fund are included in this calculation and are considered amounts needed to pay any commitments related to purchase orders, contracts and other obligations that remain unperformed at year end. In April 2015, Town Council approved a fund balance policy for the General Fund to maintain “accessible” fund balance at a level of at least 25% and total fund balance at a level of 40% of budgeted general fund expenditures (approximately five months of expenditures). Accessible fund balance is defined as the total of assigned and unassigned fund balance. Use of fund balance over these limits is limited to pay-as-you-go capital expenditures and other one-time only expenditures. Flexibility is given to go below policy levels to accommodate emergencies or dire financial circumstances. In the event limits are breached, Town Council will adopt a plan of specific actions to be taken to restore fund balance to levels according to the policy within a maximum of three fiscal years. Balances at June 30, 2018 are in conformity with this policy. Note 16 PRIOR PERIOD ADJUSTMENTS As discussed in Notes 1 and 12e, the Town adopted GASB statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, in fiscal year 2018. This standard relates to reporting of the Town's retiree healthcare. The implementation of this statement required that the Town record the beginning pension liability in full, as well as, the effects on net position of benefit payments and administrative expenses paid by the Town related to OPEB during the measurement period (fiscal year ending June 30, 2017). As a result, beginning net position of the Governmental activities has been restated, resulting in a prior period adjustment of $56.4 million for governmental activities and $15.2 million for business-type activiites.
Note 17 SUBSEQUENT EVENTS The Town has evaluated subsequent events through October 31, 2018, in connection with the preparation of these financial statements, which is the date the financial statements were available to be issued and the following significant items occurred after June 30, 2018 and prior to the report date: The Town entered into a Purchase and Development Agreement ('PDA') agreement with Momento Mori, LLC ('MM,LLC') on October 26, 2012 pursuant to which the Town sold property to MM, LLC for the construction of a hotel for economic development including jobs and capital investment in Cary's downtown. Under the PDA the Town financed the purchase price of $951,350 for the property sold and loaned to MM, LLC, $1.4 million which the Town secured through a $1.4 million Section 8 loan from the US Department of Housing and Urban Development (HUD). Both Town loans are secured by mortgages on the property and the $1.4 million loan has personal guarantees and a blanket lien on personal property through Uniform Commercial Code filings wtih the North Carolina Secretary of State. This arrangement created both an accounts receivable with MM, LLC. and a long term liability with HUD. Subsequent to June 30, 2018, Momento Mori, LLC. filed Chapter 11 bankruptcy protection. Based on an appraisal of the property, the property value exceeds the value of all secured loans, including the Town's secured loans. The Town will pursue collection of these receivables in full as a creditor of MM, LLC, however to remain consistent with the Town's conservative financial management and transparent reporting practices, the Town has recorded an allowance of $1.6 million for the HUD loan with interest and $1.2 million for the land loan with interest. See notes 4 and 9.G for additional information. Note 18 CONTINGENT LIABILITIES The Town receives amounts from federal, state, and local government agencies in the form of grants. The disbursement of funds under these programs is subject to audit in accordance with Office of Management and Budget Uniform Guidance. The Town expects the amount, if any, of expenditures that may be disallowed by the granting agencies as a result of these audits to be immaterial. The Town is a defendant in other various lawsuits. Although the outcome of these lawsuits is not presently determinable, it is the opinion of the Town Attorney and management that the resolution of these matters will not have a material adverse effect on the financial condition of the Town.
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NOTES TO BASIC FINANCIAL STATEMENTS TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
THIS SECTION CONTAINS ADDITIONAL INFORMATION REQUIRED BY ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA.
LAW ENFORCEMENT OFFICERS’ SPECIAL SEPARATION ALLOWANCE
• Schedule of Changes in Total Pension Liability
• Schedule of Total Pension Liability as a Percentage of Covered Payroll
• Notes to the Required Schedules
LOCAL GOVERNMENT EMPLOYEE RETIREMENT SYSTEM
• Schedule of Proportionate Share of Net Pension Liability (Asset) & Contribution Information
• Notes to the Required Schedules
OTHER POST-EMPLOYMENT BENEFITS
• Total OPEB Liability
• Notes to the Schedule
REQUIRED SUPPLEMENTARY INFORMATION
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LAW ENFORCEMENT SEPARATION ALLOWANCE REQUIRED SUPPLEMENTAL INFORMATION (A) TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
LAW ENFORCEMENT SEPARATION ALLOWANCE REQUIRED SUPPLEMENTAL INFORMATION (A) TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
Schedule of Changes in Total Pension Liability and Total Pension Liability as a Percentage of Covered Payroll
2018 2017
Service cost $ 339,228 382,760
Interest on total pension liability 359,635 330,966
Changes of benefit terms - -
Difference between expected and actual experience 549,809 -
Changes of assumptions and other inputs 602,934 (231,901)
Benefit payments (496,118) (375,117)
Other changes - -
Net change in total LEOSSA pension liability 1,355,488 106,708
Total LEOSSA pension liability-beginning 9,565,025 9,458,317
Total LEOSSA pension liability-ending $ 10,920,513 9,565,025
Covered-employee payroll $ 13,576,799 14,471,527 Total pension liability as a percentag of covered payroll 80.44% 66.10%
(1) Information is only required starting in fiscal year 2017; however, information has been provided where available. All plan information will be included in the future as part of GASB 73 implementation.
Notes to the Required Schedules:
(A) The information presented in the required supplementary schedules was determined as part of the actuarial valuations at the dates indicated. Additional information as of the latest actuarial valuation follows: Valuation 12/31/2016 Actuarial cost method Entry Age Normal
Actuarial assumptions: Discount rate (1) 3.16% Projected salary increases(1) 3.50 - 7.35% Cost of living adjustments None
(1)Includes inflation at 2.50%
(B) Related to implementation of GASB 73, the contributions previously made and the assets that are held in the General Fund fund balance, cannot be used to offset the liability. These funds are committed in the General Fund, but no assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 73 to pay related benefits. Historic info prior to fiscal year 2017will remain as previously reported.
140
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LOCAL GOVERNMENT EMPLOYEE RETIREMENT SYSTEM (LGERS) REQUIRED SUPPLEMENTAL INFORMATION TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS(1)
LOCAL GOVERNMENT EMPLOYEE RETIREMENT SYSTEM (LGERS) REQUIRED SUPPLEMENTAL INFORMATION TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS(1)
Schedule of Proportionate Share of Net Pension Liability (Asset) & Contribution Information Total Plan Fiduciary
Net Position Contributions Town % LGERS Town Portion Ratio of Share as % of Total Contractually as a % of
Net Pension LGERS Net Pension Covered to Covered Pension Required Actual Deficiency Covered Covered Fiscal Year Liability(Asset) Asset(Liability) Payroll2,5 Payroll Liability3 Contribution Contributions (Excess) Payroll 4,5 Payroll
2018 1.28 % $ 19,510,398 80,016,854 24.38 % 94.18 % $ 6,139,890 6,139,890 -- 80,044,211 7.67 % 2017 1.31 27,787,095 75,026,000 37.04 91.47 5,943,794 5,943,794 -- 80,016,854 7.43 2016 1.33 5,979,417 72,700,000 8.22 98.09 5,006,042 5,006,042 -- 75,026,000 6.67 2015 1.31 (7,741,950) 63,804,015 (12.13) 102.64 5,073,735 5,073,735 -- 72,700,000 6.98 2014 1.30 15,707,359 62,177,970 25.26 94.35 4,784,512 4,784,512 -- 63,804,015 7.50 2013 (1) (1) 59,966,991 (1) (1) 4,402,313 4,402,313 -- 62,177,970 7.08 2012 (1) (1) 58,907,760 (1) (1) 4,445,550 4,445,550 -- 59,966,991 7.41 2011 (1) (1) 58,825,772 (1) (1) 3,948,832 3,948,832 -- 58,907,760 6.70 2010 (1) (1) 59,350,682 (1) (1) 2,914,999 2,914,999 -- 58,825,772 4.96 2009 (1) (1) 50,926,701 (1) (1) 2,864,607 2,864,607 -- 59,350,682 4.83
Notes to the Required Schedules: (1) Information is only required starting in Fiscal Year 2015; however, information has been provided where available. All plan information will be included in the future as part of GASB standard 68 implementation. (2) For pension plan information, the amount of covered payroll used for the ratio is related to prior fiscal year due to the 1 year lag in measurement date. (3) This % is provided by the State and will be the same for all participant employers in the LGERS plan. (4) For contribution information, the amount of covered payroll is related to current fiscal year (no lag). (5) Covered payroll includes total payroll of covered employees, but may include compensation which has been excluded from the amount on which contributions to the pension plan are based. Calculation of covered payroll does include some estimates and assumptions.
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OTHER POST-EMPLOYMENT BENEFITS REQUIRED SUPPLEMENTAL INFORMATION TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS(1)
OTHER POST-EMPLOYMENT BENEFITS REQUIRED SUPPLEMENTAL INFORMATION TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS(1)
2018 Total OPEB liability
Service Cost $ 6,812,380 Interest 4,281,585 Changes in benefit terms -- Difference between expected and actual experience 7,224,444 Change of assumptions or other inputs (15,987,775) Benefit payments (1,963,515) Net change in total OPEB liability 367,119 Total OPEB liability-beginning 146,043,204 Total OPEB liability-ending $ 146,410,323
Covered employee payroll $ 71,230,547 Total OPEB liability as a percentage of covered- employee payroll 205.54%
Notes to Schedule:
Changes of assumptions: Changes of assumptions and other inputs reflect the effects of changes in the discount rate each period. The following are the discount rates used in each period:
Fiscal year Rate 2018 3.55%
Information is required beginning in fiscal year 2018. All plan information will be included in the future as part of GASB standard 75 implementation.
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SUPPLEMENTARY INFORMATION
CAPITAL PROJECT FUND
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CAPITAL PROJECT FUND The Capital Project Fund consists of six sub-funds: Street Project Fund, Downtown Project Fund, Parks, Recreation and Cultural Resources Project Fund, Fire Project Fund, General Governmental Project Fund and a General Capital Reserve Fund. These funds are treated as one fund in the Basic Financial Statements. The following statements are included as supplementary information.
Combining Balance Sheet – Sub-fund breakdown of balance sheet information from the Basic Financial Statements.
Combining Schedule of Revenues, Expenditures, and Changes in Fund Balances – Sub-fund breakdown of information from the Basic Financial Statements.
Project Schedules of Revenues, Expenditures, and Changes in Fund Balances – Detail of multi-year projects and the associated revenue and expenditure budget to actual comparisons. Each sub-fund is presented separately.
General Capital Reserve - Schedule of Revenues, Expenditures, and Changes in Fund Balance – Budget to actual comparison for the annually budgeted General Capital Reserve Fund.
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CAPITAL PROJECT FUND – SUB-FUND COMBINING BALANCE SHEET TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018 WITH COMPARATIVE TOTALS AS OF JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA CAPITAL PROJECT FUND SUB-FUND COMBINING BALANCE SHEET June 30, 2018 With Comparative Totals As of June 30, 2017
Parks, Recreation General
Schedule 1 Street and Cultural Fire General Capital June 30, Project Downtown Resources Project Governmental Reserve Fund Project Fund Project Fund Fund Project Fund Fund 2018 2017
ASSETS
UNRESTRICTED ASSETS Equity in Pooled Cash and Investments $42,753,743 20,731,333 20,481,295 1,790,444 14,585,849 35,620,308 135,962,972 114,278,991 Accrued Interest on Investments -- -- -- -- -- 503,979 503,979 357,401 Accounts Receivable, net of allowance for doubtful accounts 11,313 -- 1,083,224 -- -- 431,632 1,526,169 1,608,479 TOTAL UNRESTRICTED ASSETS 42,765,056 20,731,333 21,564,519 1,790,444 14,585,849 36,555,919 137,993,120 116,244,871
RESTRICTED ASSETS Equity in Pooled Cash and Investments
Unspent Debt Proceeds 15,335,659 -- 2,379,783 455,852 -- -- 18,171,294 --- Unspent Restricted Grants & Intergovernmental 3,982,646 10,438 3,350,031 -- 6,551 3,845,323 11,194,989 11,518,579
Customer Deposits & Other Funds Held -- -- 2,808 -- -- 1,773,714 1,776,522 1,299,598 TOTAL RESTRICTED ASSETS 19,318,305 10,438 5,732,622 455,852 6,551 5,619,037 31,142,805 12,818,177
TOTAL ASSETS 62,083,361 20,741,771 27,297,141 2,246,296 14,592,400 42,174,956 169,135,925 129,063,048
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts Payable 3,138,285 3,047,337 2,066,278 13,470 392,585 1,086,324 9,744,279 2,191,821 Retainage Payable 725,210 -- 198,861 -- 11,212 -- 935,283 1,024,544 Advance from Customers -- -- -- -- 18,535 -- 18,535 18,535 TOTAL LIABILITIES 3,863,495 3,047,337 2,265,139 13,470 422,332 1,086,324 10,698,097 3,234,900
DEFERRED INFLOWS OF RESOURCES Vehicle Tags Receivable & Prepaid -- -- -- -- -- 166,055 166,055 314,614
FUND BALANCES Restricted: Stabilization by State Statute -- -- -- -- -- 769,556 769,556 513,262 Street Projects 19,318,305 10,438 -- -- -- 3,845,323 23,174,066 9,654,645 Parks, Recreation and Cultural Projects -- -- 5,732,621 -- -- 690,463 6,423,084 2,375,041 Fire -- -- -- 455,852 -- -- 455,852 --- General Governmental -- -- -- -- 6,551 -- 6,551 696 Committed: Street Projects 38,901,561 -- -- -- -- 14,819,128 53,720,689 47,963,407 Downtown Projects -- 17,683,996 -- -- -- -- 17,683,996 15,834,647 Parks, Recreation and Cultural Projects -- -- 19,299,381 -- -- 11,672,464 30,971,845 27,138,877 Fire Projects -- -- -- 1,776,974 -- -- 1,776,974 2,315,173 General Governmental Projects -- -- -- -- 14,163,517 -- 14,163,517 12,490,868 Governmental Capital Projects -- -- -- -- -- 9,125,643 9,125,643 7,226,918 TOTAL FUND BALANCES 58,219,866 17,694,434 25,032,002 2,232,826 14,170,068 40,922,577 158,271,773 125,513,534
TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES $62,083,361 20,741,771 27,297,141 2,246,296 14,592,400 42,174,956 169,135,925 129,063,048
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CAPITAL PROJECT FUND – SUB-FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA CAPITAL PROJECT FUND SUB-FUND COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES For the Year Ended June 30, 2018 With Comparative Totals For the Year Ended June 30, 2017
Parks, Recreation General
Schedule 2 Street and Cultural Fire General Capital June 30, Project Downtown Resources Project Governmental Reserve Fund Project Fund Project Fund Fund Project Fund Fund 2018 2017
REVENUES Unrestricted Intergovernmental $ -- -- -- -- -- 603,297 603,297 617,909 Restricted Intergovernmental 2,226,647 -- 5,892,484 -- -- 3,849,600 11,968,731 7,892,920 Permits and Fees -- -- -- -- -- 10,196,238 10,196,238 8,428,154 Investment Earnings, net of market adjustment 223,352 -- -- -- -- 507,052 730,404 262,863 Reimbursements from Developers & Others --- -- -- -- -- -- --- 3,647,100 Miscellaneous 100 -- 446,170 -- 15,725 186,686 648,681 1,821,890
TOTAL REVENUES 2,450,099 -- 6,338,654 -- 15,725 15,342,873 24,147,351 22,670,836
EXPENDITURES General Government, net -- 5,150,651 -- -- 4,928,552 -- 10,079,203 6,166,528 Public Safety, net -- -- -- 1,131,577 -- -- 1,131,577 2,476,200 Parks, Recreation and Culture -- -- 12,293,275 -- -- -- 12,293,275 10,655,105 Infrastructure 25,719,520 -- -- -- -- -- 25,719,520 20,155,723 TOTAL EXPENDITURES 25,719,520 5,150,651 12,293,275 1,131,577 4,928,552 -- 49,223,575 39,453,556
REVENUES OVER (UNDER) EXPENDITURES (23,269,421) (5,150,651) (5,954,621) (1,131,577) (4,912,827) 15,342,873 (25,076,224) (16,782,720)
OTHER FINANCING SOURCES (USES) Transfers In 4,570,000 7,000,000 4,971,051 --- 7,726,350 184,000 24,451,401 20,923,589 Transfers Between Sub-Funds, net 5,939,562 --- 2,756,327 44,286 (1,135,019) (7,605,156) -- -- General Obligation Bonds Issued 26,500,000 --- 3,605,000 930,000 --- --- 31,035,000 --- Premium Received on General Obligation Bonds 2,003,341 --- 269,777 74,944 --- --- 2,348,062 --- TOTAL OTHER FINANCING SOURCES (USES) 39,012,903 7,000,000 11,602,155 1,049,230 6,591,331 (7,421,156) 57,834,463 20,923,589
NET CHANGE IN FUND BALANCE 15,743,482 1,849,349 5,647,534 (82,347) 1,678,504 7,921,717 32,758,239 4,140,869
FUND BALANCE - Beginning of year 42,476,384 15,845,085 19,384,468 2,315,173 12,491,564 33,000,860 125,513,534 121,372,665
FUND BALANCE - End of Year $58,219,866 17,694,434 25,032,002 2,232,826 14,170,068 40,922,577 158,271,773 125,513,534
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Schedule 3 Actual
Project Prior Current Total Authorization Years Year To Date
REVENUES
NCDOT Municipal Agreements $1,231,201 1,231,201 -- 1,231,201 State and Federal Grants 21,624,649 3,475,262 2,226,647 5,701,909 Non Governmental Grants 1,000,000 -- -- -- Investment Earnings 250,000 -- 223,352 223,352 Other Taxes 1,538,000 -- -- -- Developer Reimbursement (Paid by Developers) 450,000 424,000 -- 424,000 State Reimbursement 3,647,100 3,647,100 -- 3,647,100 Miscellaneous 1,252,808 1,262,404 100 1,262,504
TOTAL REVENUES 30,993,758 10,039,967 2,450,099 12,490,066
Less: Completed Projects (7,969,201) (2,666,427) -- (2,666,427)
Total Revenues, net of completed projects 23,024,557 7,373,540 2,450,099 9,823,639
EXPENDITURES
Asset-Related Projects Project # Annual Sidewalk Improvements - FY 2009 ST1179 1,000,000 990,958 -- 990,958 Annual Sidewalk Improvements - FY 2012 ST1210 500,000 492,808 -- 492,808 Annual Sidewalk Improvements - FY 2013 ST1223 500,000 250,557 6,086 256,643 Cary Parkway (Evans to North Harrison) ST1230 2,800,000 76,448 1,754,989 1,831,437
Cary Transit (C-Tran) - FY 2013 - Cary Transit Land Acquisition - Transit Facility Site * ST1222 1,255,000 1,255,000 -- 1,255,000
DT - Streetscape Improvements Along South Academy St and Dry Ave ST1238 8,000,000 7,382,686 281,905 7,664,591
GoCary Capital Amenities ST1266 75,000 -- -- -- GoCary Regional Operations and Maintenance Facility ST1267 1,000,000 -- -- --
Morrisville Pkwy Extension - Phase III Carpenter Upchurch Rd to Green Level Church Rd ST1123 16,835,383 9,927,626 3,568,603 13,496,229 Sidewalk and Pedestrian Improvements - FY 2015 ST1244 600,000 81,617 4,320 85,937 Sidewalk and Pedestrian Improvements – FY 2016 ST1253 780,000 84,474 4,465 88,939 Sidewalk and Pedestrian Improvements - FY 2017 ST1260 1,000,000 17 66,950 66,967 Sidewalk and Pedestrian Improvements - FY 2018 ST1268 1,070,000 -- 5,840 5,840 Sidewalk Improvements - FY 2007 ST1147 1,000,000 972,671 -- 972,671
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Schedule 3 Actual
Project Prior Current Total Authorization Years Year To Date
Asset-Related Projects Project # Sidewalk Improvements - FY 2011 ST1196 $500,000 494,088 -- 494,088 Sidewalk Improvements FY 2004 ST1116 500,000 492,879 -- 492,879 Sidewalks - Bond Funded ST1240 1,832,000 147,966 11,850 159,816 Signal System - Bond Funds ST1239 2,900,000 2,405,958 48,900 2,454,858 Signal System – Camera Coverage Expansion * ST1254 350,000 257,068 -- 257,068 STM - Arbor Brook ST6041 563,000 -- 14,222 14,222 STM - Bowden Street Drainage Improvements * ST6036 7,890 7,890 -- 7,890 STM - Bridle Creek Culvert Assessment * ST6037 81,885 2,160 79,725 81,885 STM - Green Level Church * ST6025 35,701 35,701 -- 35,701 STM - Greg Dr at Key West Mews * ST6029 54,000 -- 54,000 54,000 STM - Kilarney 1600B ST6039 25,000 -- -- -- STM - Pamlico SCM Easement ST6042 1,000 -- -- -- STM - Queensferry Drainage * ST6033 1,226 1,226 -- 1,226 STM - Stonewater Glen * ST6032 123,708 123,708 -- 123,708 STM - Storm Drainage - MAIN ST6000 124,235 -- -- -- STM - Trailing Fig Culvert Repair * ST6034 13,028 13,028 -- 13,028 STM - Two Creeks ST6040 550,000 -- -- -- STM - Vinecrest Court ST6035 69,000 13,201 608 13,809 STM - Walnut Near Warren Avenue * ST6030 3,200 3,200 -- 3,200 TCAP - Walker Street Extension * ST1158 7,438,308 1,695,691 237,676 1,933,367 Traffic Signalization FY2005 ST1129 200,000 175,881 -- 175,881 Traffic Signalization FY2006 ST1143 243,818 212,676 -- 212,676 Traffic Signalization FY2007 ST1157 300,000 179,865 22,773 202,638 Traffic Signalization FY2008 ST1173 229,967 5,375 -- 5,375 Traffic Signalization FY2009 * ST1187 300,000 266,582 -- 266,582 Traffic Signalization FY2011 ST1198 400,000 84,103 53,863 137,966 Traffic Signalization FY2012 ST1217 200,000 36,477 -- 36,477
Total Expenditures 53,462,349 28,169,585 6,216,775 34,386,360
Less: Completed Projects (noted by *) (9,663,946) (3,661,254) (371,401) (4,032,655)
Construction-in-Progress 43,798,403 24,508,331 5,845,374 30,353,705
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Schedule 3 Actual
Project Prior Current Total Authorization Years Year To Date
Expense Projects Project# Annexation Areas - Street Repaving * ST1146 $400,000 376,954 14,636 391,590 Aviation Parkway Sidewalk Reimbursement - NE Quadrant at I-40 Interchange ST1262 56,000 -- -- -- Bicycle Facilities - Bond Funded ST1241 975,700 697,093 394 697,487 Bicycle Facilities Implementation - FY 2012 ST1211 20,000 8,867 -- 8,867 Bicycle Facilities Implementation - FY 2013 ST1224 20,000 16,018 750 16,768 Bicycle Facilities Implementation - FY 2018 ST1263 25,000 -- -- -- Bridge & Culvert Repairs FY 2018 ST1272 85,000 -- -- -- Carpenter Fire Station Road / CSX Rail Grade Separation (NEPA / Design) ST1204 21,220,000 1,725,203 4,482,222 6,207,425 Carpenter Fire Station Road Widening NC 55 to East of Cameron Pond ST1273 1,100,000 -- -- -- Cary Parkway/High House Road Intersection ST1231 4,910,089 831,542 973,987 1,805,529 Cary Transit - FY 2017 * ST1258 15,000 12,724 -- 12,724 GoCary ADA Bus Stop Improvements ST1264 895,000 -- -- -- GoCary Bus Stop Sign Replacement ST1265 43,000 -- -- -- Green Level Church at Horton Creek * ST1257 300,000 25,632 23,861 49,493 Green Level West Bridge Replacement Sidewalk * ST1234 25,000 13,796 -- 13,796 Green Level West Road Widening (NEPA / Design) ST1206 10,000,000 2,341,152 3,173,769 5,514,921 Intersection Improvements - FY 2016 ST1251 1,000,000 53,382 280,434 333,816 Intersection Improvements - FY 2017 ST1259 3,250,000 200,000 -- 200,000 Kildaire Farm Road Widening * ST1084 9,657,201 9,490,872 -- 9,490,872 Lake Pine Road Widening and Sidewalk Improvements ST1245 133,000 -- -- -- Morrisville Parkway and Carpenter Upchurch Road Intersection Improvements ST1252 1,264,310 73,931 272,996 346,927 Morrisville Parkway Interchange - NCTA ST1248 5,100,000 -- -- -- NC 540 Interchange with Morrisville Parkway ST1220 3,121,717 1,120,036 404,712 1,524,748 Reduce Congestion Through Intersection Improvements (Based on LOS) - Bond Funded ST1237 4,813,515 817,517 810,842 1,628,359 Reedy Creek Road Improvements (NEPA / Design) ST1207 7,067,500 596,615 333,987 930,602 Spot Improvements (Based on Levels of Service, Safety and Citizen Concerns) - FY 2015 ST1246 250,000 29,433 9,011 38,444 Spot Improvements (Based on Levels of Service, Safety and Citizen Concerns) - FY 2016 ST1255 200,000 18,054 4,898 22,952 Spot Improvements (Based on Levels of Service, Safety and Citizen Concerns) - FY 2018 ST1269 225,000 -- 15,904 15,904
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Schedule 3 Actual
Project Prior Current Total Authorization Years Year To Date
Expense Projects (cont'd) Project# Street Improvements - FY 2015 * ST1243 $5,000,000 4,546,938 422,720 4,969,658 Street Improvements - FY 2016 ST1256 5,619,000 5,347,080 226,622 5,573,702 Street Improvements - FY 2017 ST1261 6,927,000 108,627 6,537,658 6,646,285 Street Improvements - FY 2018 ST1270 6,500,000 -- 1,309,723 1,309,723 Thoroughfare Street Lights ST1131 250,000 106,921 1,627 108,548 Traffic Calming ST1107 927,808 535,380 18,602 553,982 Traffic Signal - Cary Glen/Carpenter Fire Station * ST1235 250,000 107,574 42,000 149,574 Traffic Signalization FY2013 ST1226 250,000 -- 26,565 26,565 Traffic Signalization Projects - FY 2015 ST1247 250,000 -- -- -- Traffic Signalization Projects - FY 2018 ST1271 400,000 -- -- -- Transportation Feasibility Studies ST1274 600,000 -- 71,457 71,457
Walnut Street Pedestrian and Traffic Improvements (US1/64 Overpass) ST1208 7,000,000 5,140,141 43,368 5,183,509 Yates Store Road through Montvale ST1249 500,000 -- -- --
Total Expenditures 110,645,840 34,341,482 19,502,745 53,844,227
Less: Completed Projects (noted by *) (15,647,201) (14,574,490) (503,215) (15,077,705)
Other Projects-in-Progress 94,998,639 19,766,992 18,999,530 38,766,522
TOTAL EXPENDITURES 164,108,189 62,511,067 25,719,520 88,230,587
Total Completed Projects (25,311,147) (18,235,744) (874,616) (19,110,360)
TOTAL PROJECTS IN PROGRESS 138,797,042 44,275,323 24,844,904 69,120,227
Revenues Under Expenditures, net of completed projects (115,772,485) (36,901,783) (22,394,805) (59,296,588)
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Schedule 3 Actual
Project Prior Current Total Authorization Years Year To Date
OTHER FINANCING SOURCES General Obligation Bonds Issued $44,300,276 19,544,245 26,500,000 46,044,245 General Obligation Bond Premium Received 2,003,341 -- 2,003,341 2,003,341 Transfers In, net General Fund 21,063,731 16,493,731 4,570,000 21,063,731 Capital Reserve Sub-Fund - NCDOT Loan Payment 1,922,617 1,922,617 -- 1,922,617 Capital Reserve Sub-Fund 63,824,466 56,986,891 5,939,562 62,926,453
TOTAL OTHER FINANCING SOURCES 133,114,431 94,947,484 39,012,903 133,960,387 Less: Completed Projects (17,341,946) (17,299,633) 855,700 (16,443,933)
Total Other Financing Sources, net of completed projects 115,772,485 77,647,851 39,868,603 117,516,454
Increase -- 40,746,068 17,473,798 58,219,866
Adjustment for Completed Projects -- 1,730,316 (1,730,316) --
FUND BALANCE $ -- 42,476,384 15,743,482 58,219,866
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TOWN OF CARY, NORTH CAROLINA DOWNTOWN PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 4 Actual
Project Prior Current Total Authorization Years Year To Date
EXPENDITURES
Asset-Related Projects Project #
212 E Cedar Parking Lot * DT1124 $158,514 158,514 -- 158,514 Chatham Street Parking Spaces DT1135 15,000 -- 11,795 11,795 Downtown Development Opportunity DT1131 5,000,000 -- -- -- Library Lower Level DT1132 630,000 -- -- -- Library Parking Structure DT1129 14,150,000 826,236 4,746,620 5,572,856 Mayton Inn Access Road DT1117 106,124 105,353 -- 105,353 Midtown Square Sidewalk DT1128 292,660 243,203 47,337 290,540 Regional Stormwater DT1123 1,214,590 55,011 1,610 56,621 Total Expenditures 21,566,888 1,388,317 4,807,362 6,195,679
Less: Completed Projects (noted by *) (158,514) (158,514) --- (158,514) Construction-in-Progress 21,408,374 1,229,803 4,807,362 6,037,165
Expense Projects 118, 120 and 124 Park Street Demolition DT1130 45,000 43,550 -- 43,550 Business Improvement District Development Fees DT1108 700,399 200,346 334,218 534,564 Development Around Park DT1134 25,000 -- -- -- Downtown Available Funds (Parent Project) DT1000 2,027,239 -- -- -- Downtown Façade Assistance DT1133 9,070 -- 9,070 9,070 Jones House Updates DT1136 100,000 -- -- -- Land - Downtown Park DT1127 5,000 1,299 -- 1,299 Other Projects-in-Progress 2,911,708 245,195 343,288 588,483
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TOWN OF CARY, NORTH CAROLINA DOWNTOWN PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 4 Actual
Project Prior Current Total Authorization Years Year To Date
TOTAL EXPENDITURES $24,478,596 1,633,512 5,150,650 6,784,162
Total Completed Projects (158,514) (158,514) -- (158,514)
TOTAL PROJECTS IN PROGRESS 24,320,082 1,474,998 5,150,650 6,625,648
Revenues Under Expenditures, net of completed projects (24,320,082) (1,474,998) (5,150,650) (6,625,648)
OTHER FINANCING SOURCES
Transfers In, net General Fund 23,352,068 16,352,067 7,000,000 23,352,067 Capital Reserve Sub-Fund 1,126,528 1,126,529 -- 1,126,529
TOTAL OTHER FINANCING SOURCES 24,478,596 17,478,596 7,000,000 24,478,596
Less: Completed Projects (158,514) (158,514) -- (158,514)
Total Other Financing Sources, net of completed projects 24,320,082 17,320,082 7,000,000 24,320,082
Increase -- 15,845,084 1,849,350 17,694,434
FUND BALANCE $ -- 15,845,085 1,849,349 17,694,434
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TOWN OF CARY, NORTH CAROLINA PARKS, RECREATION AND CULTURAL RESOURCES PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 5 Actual
Project Prior Current Total Authorization Years Year To Date
REVENUES
Wake County Grant $8,107,350 3,250,000 2,600,000 5,850,000 State and Federal Grants 17,339,240 2,094,299 3,292,484 5,386,783 Rental Payments 1,500,000 760,341 380,170 1,140,511 Investment Earnings 13,537 13,537 -- 13,537 Reimbursement from Apex 284,608 -- -- -- Reimbursement from Chatham County 60,000 60,000 15,000 75,000 Contributions 350,000 288,500 51,000 339,500
TOTAL REVENUES 27,654,735 6,466,677 6,338,654 12,805,331
Less: Completed Projects (932,000) (932,500) (15,000) (947,500)
Total Revenues, net of completed projects 26,722,735 5,534,177 6,323,654 11,857,831
EXPENDITURES
Asset-Related Projects Project #
Artificial Turf Fields PR1190 1,918,450 1,679,442 15,466 1,694,908 Black Creek Greenway Renovation - Phases I & II - Phase V New Construction PR1129 5,626,000 316,728 20,920 337,648
Carpenter Fire Station Rd. Neighborhood Park PR1242 600,000 16,200 60,099 76,299 Carpenter Neighborhood Park * PR1144 2,983,000 2,929,270 38,311 2,967,581 Cary Tennis Park Court Renovations * PR1155 100,000 100,000 -- 100,000 Cary Tennis Park Expansion - Interlocal PR1193 7,380,500 4,254,272 515,470 4,769,742 Cary Tennis Park Lighting & Bleacher Enhancements PR1269 1,115,000 -- 216,182 216,182 Crabtree Creek Greenway PR1166 5,398,000 928,595 3,410,304 4,338,899 Downtown Park PR1185 5,639,000 4,687,703 573,740 5,261,443 DT - Public Art - Parking Deck PR1232 168,100 120,600 47,500 168,100 Good Hope Farm PR1128 179,789 100,027 47,304 147,331 Greenway & Open Space Acquisition PR1039 1,480,300 1,265,988 -- 1,265,988
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Schedule 5 Actual
Project Prior Current Total Authorization Years Year To Date
Asset-Related Projects (cont'd) Project # Higgins Greenway PR1267 $200,000 -- -- -- Hinshaw Greenway Renovations PR1218 200,000 -- -- -- Jack Smith Park * PR1074 4,540,345 4,314,977 8,476 4,323,453 Kids Together Playground - Misting Garden PR1239 130,000 -- 79,072 79,072 Koka Booth Amphitheatre Lighting Replacement * PR1265 303,000 -- 303,000 303,000
MacDonald Woods Park Restrooms PR1240 300,000 42,755 216,389 259,144 Mills Park - Phase II PR1184 1,070,000 106,758 9,769 116,527 Mills School-Park PR1111 1,810,000 1,618,329 150 1,618,479 New Hope Church Road Trailhead Park * PR1095 2,075,431 1,953,669 91,797 2,045,466 New Hope Disc Golf Course PR1252 50,000 -- 9,315 9,315 P-010 Neighborhood Park PR1255 850,000 -- 59,750 59,750 Panther Branch Greenway (Cameron Pond/540 Segment to Mills Park) PR1187 4,856,939 106,598 4,288 110,886 Public Art - Carpenter Park PR1245 60,000 -- 30,000 30,000 Public Art - Kids Together Playground - Misting Garden PR1246 40,000 10,000 30,000 40,000 Public Art - P-006 Neighborhood Park PR1259 10,000 -- 3,600 3,600 Public Art - P-010 Neighborhood Park PR1260 10,000 -- 10,000 10,000 Public Art - Park and Greenway Amenities PR1261 20,000 -- -- -- Public Art- Black Creek Greenway PR1258 35,000 -- 20,054 20,054 Recreational Facility Improvements PR1247 330,000 60,711 58,975 119,686 Recreational Facility Sound System Replacements PR1248 90,000 -- -- -- Restroom Replacement adjacent to Sertoma Amphitheater PR1146 200,000 5,100 90,831 95,931 Roberts Road Community Park PR1143 250,000 -- -- -- Sports Turf Fields PR1188 2,601,355 2,282,010 13,845 2,295,855 Swift Creek Greenway Construction PR1268 300,000 -- -- -- TCAP/Public Art - Walker Street Extension * PR1140 100,000 68,300 -- 68,300 Thomas Brooks Drainage/USAB NTF Field Replacement PR1236 1,000,000 272,067 64,844 336,911
USA Baseball National Training Complex Improvements - Interlocal PR1164 6,455,000 110,500 170,690 281,190 WakeMed Soccer Park Facility Improvements - Phase II - Interlocal PR1202 3,520,000 704,262 42,017 746,279 White Oak Creek Greenway - MacArthur Park Section PR1251 7,007,500 406,586 481,089 887,675
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TOWN OF CARY, NORTH CAROLINA PARKS, RECREATION AND CULTURAL RESOURCES PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 5 Actual
Project Prior Current Total Authorization Years Year To Date
Asset-Related Projects (cont'd) Project #
White Oak Creek Greenway- American Tobacco Trail Segment PR1186 $5,630,070 116,447 3,943,857 4,060,304 White Oak Creek Greenway Trailhead PR1213 185,000 2,000 12,060 14,060
Total Expenditures 76,817,779 28,579,894 10,699,164 39,279,058
Less: Completed Projects (noted by *) (10,101,776) (9,366,216) (441,585) (9,807,801)
Construction-in-Progress 66,716,003 19,213,678 10,257,579 29,471,257
Expense Projects Project #
Annie Jones and Dunham Park Tennis Ct. Renovations PR1263 200,000 -- -- -- Athletic Field Bleacher Replacement - FY2018 * PR1254 48,000 -- -- -- Cary Tennis Park - Lighting and Scoreboard * PR1231 55,000 50,685 -- 50,685 Cary Tennis Park Court Renovations PR1182 925,000 1,058,447 (214,183) 844,264 DT - Downtown Park - Future Phases Master Plan PR1237 861,900 -- 45,043 45,043 Greenway Pedestrian Structure Repair and Resurfacing Projects FY2018 PR1264 350,000 -- -- -- Greenway Resurfacing - FY 2017 PR1238 262,000 -- 234,765 234,765 Greenway Storm Damage Repair PR1253 550,000 168,591 380,979 549,570 Koka Booth Amphitheatre Improvements - FY 2016 PR1220 350,000 12,650 190,217 202,867 Meeting Place Pocket Park * PR1221 75,000 66,445 8,554 74,999 Mills Park Community Center Planning Funding PR1241 50,000 -- -- -- Old Reedy Creek Road Traihead Parking Lot PR1151 1,105,000 704,000 222,415 926,415 Park and Greenway Renovations - FY 2013 PR1180 130,000 113,248 1,457 114,705 Park and Greenway Renovations - FY 2014 PR1197 140,000 81,638 19,294 100,932 Park and Greenway Renovations - FY 2015 PR1211 226,000 200,716 3,449 204,165 Park and Greenway Renovations - FY 2016 PR1222 255,000 500 179,803 180,303 Park and Greenway Renovations - FY 2017 * PR1243 125,000 82,802 39,213 122,015 Park and Greenway Renovations - FY 2018 PR1256 270,000 -- 40,559 40,559 Park, Greenway and Facility Sign Plan Implementation PR1159 445,000 316,776 23,336 340,112 Playground Surface Repairs/Replacement PR1257 83,000 -- 80,716 80,716
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TOWN OF CARY, NORTH CAROLINA PARKS, RECREATION AND CULTURAL RESOURCES PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 5 Actual
Project Prior Current Total Authorization Years Year To Date
Expense Projects (cont'd) Project # PRCR Venue Wayfinding Signage PR1158 $243,000 153,379 -- 153,379 Sertoma Amphitheater Improvements PR1227 200,000 28,836 165,374 194,210 Sports Venue Assessment PR1266 130,000 -- 110,700 110,700 Landscape Architect - Bonds PR1189 362,510 361,311 -- 361,311 Tennis Court Renovations - FY 2017 * PR1250 160,000 112,780 3,200 115,980 Tennis Court Renovations - FY 2018 PR1262 72,000 -- 59,220 59,220 WakeMed Soccer Park Improvements - FY 2016 PR1230 220,000 35,010 -- 35,010
Total Expenditures 7,893,410 3,547,814 1,594,111 5,141,925
Less: Completed Projects (noted by *) (463,000) (312,712) (50,967) (363,679)
Other Projects-in-Progress 7,430,410 3,235,102 1,543,144 4,778,246
TOTAL EXPENDITURES 84,711,189 32,127,708 12,293,275 44,420,983
Total Completed Projects (10,564,776) (9,678,928) (492,552) (10,171,480)
TOTAL PROJECTS IN PROGRESS 74,146,413 22,448,780 11,800,723 34,249,503
Revenues Under Expenditures, net of completed projects (47,423,678) (16,914,603) (5,477,069) (22,391,672)
OTHER FINANCING SOURCES
General Obligation Bonds Issued 15,863,988 12,258,988 3,605,000 15,863,988
General Obligation Bond Premium Received 269,777 -- 269,777 269,777
Transfers In, net
General Fund 18,572,390 13,601,339 4,971,051 18,572,390 Capital Reserve Sub-Fund 22,350,299 19,185,178 2,756,327 21,941,505
TOTAL OTHER FINANCING SOURCES 57,056,454 45,045,505 11,602,155 56,647,660
Less: Completed Projects (9,632,776) (9,281,776) 57,790 (9,223,986)
Total Other Financing Sources, net of completed projects 47,423,678 35,763,729 11,659,945 47,423,674
Increase -- 18,849,126 6,182,876 25,032,002
Adjustment for Completed Projects -- 535,342 (535,342) --
FUND BALANCE $ -- 19,384,468 5,647,534 25,032,002
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TOWN OF CARY, NORTH CAROLINA FIRE PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 6 Actual
Project Prior Current Total Authorization Years Year To Date
EXPENDITURES
Asset-Related Projects Project # Aerial Ladder Truck (New Company Northwestern Area) FR1051 $1,400,000 989,908 103,461 1,093,369 Fire Pumper Replacement * FR1052 650,000 591,888 4,897 596,785 Fire Pumper Replacement - #1706 FR1054 650,000 -- 616,373 616,373 Fire Station - Southwestern Cary FR1047 800,000 3,200 -- 3,200 Fire Station #10 - Northwestern Cary FR1044 925,000 802,361 10,714 813,075 Fire Station #9 - Walnut Street Area FR1048 7,900,000 170,059 379,032 549,091 Traffic Signal Pre-emption - Phase II FR1038 221,000 102,905 -- 102,905 Total Expenditures 12,546,000 2,660,321 1,114,477 3,774,798 Less: Completed Projects (noted by *) (650,000) (591,888) (4,897) (596,785)
Construction-in-Progress 11,896,000 2,068,433 1,109,580 3,178,013
Expense Projects Fire Station #2 Foundation Repairs FR1050 250,000 20,501 17,100 37,601 Other Projects-in-Progress 250,000 20,501 17,100 37,601
TOTAL EXPENDITURES 12,796,000 2,680,822 1,131,577 3,812,399
Total Completed Projects (650,000) (591,888) (4,897) (596,785)
TOTAL PROJECTS IN PROGRESS 12,146,000 2,088,934 1,126,680 3,215,614
Revenues Under Expenditures (12,146,000) (2,088,934) (1,126,680) (3,215,614)
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TOWN OF CARY, NORTH CAROLINA FIRE PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception To June 30, 2018
Schedule 6 Actual
Project Prior Current Total Authorization Years Year To Date
OTHER FINANCING SOURCES (USES)
General Obligation Bonds Issued $2,107,674 1,177,674 930,000 2,107,674 General Obligation Bond Premium Received 74,944 -- 74,944 74,944
Transfers In, net General Fund 2,947,326 2,947,326 -- 2,947,326 Capital Reserve Sub-Fund 968,500 870,995 44,286 915,281 Installment Purchase Proceeds 6,697,556 -- -- --
TOTAL OTHER FINANCING SOURCES, net 12,796,000 4,995,995 1,049,230 6,045,225
Less: Completed Projects (650,000) (649,999) 53,214 (596,785)
Total Other Financing Sources, net of completed projects 12,146,000 4,345,996 1,102,444 5,448,440
Increase (Decrease) -- 2,257,062 (24,236) 2,232,826
Adjustment for Completed Projects -- 58,111 (58,111) --
FUND BALANCE $ -- 2,315,173 (82,347) 2,232,826
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TOWN OF CARY, NORTH CAROLINA GENERAL GOVERNMENTAL PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception to June 30, 2018
Schedule 7 Actual
Project Prior Current Total Authorization Years Year To Date
REVENUES Nextel Payments $ -- 159,688 -- 159,688 Miscellaneous 18,370 116,845 -- 116,845 Miscellaneous Grants 64,078 48,224 15,725 63,949
TOTAL REVENUES 82,448 324,757 15,725 340,482
Less: Completed Projects (28,370) (276,535) (9,869) (286,404)
Total Revenues, net of completed projects 54,078 48,222 5,856 54,078
EXPENDITURES
Asset-Related Projects Project # Application Software Replacement CLASS and FASTER - FY 2017 GG1144 800,000 165,920 436,263 602,183 Conference Room Technology Upgrades GG1113 215,400 112,449 33,678 146,127 Electric Vehicle Charging Stations - Duke Grant * GG1148 12,800 -- 9,869 9,869 Electric Vehicle Charging Stations for Library Parking Deck GG1150 110,000 -- -- -- Evidence Room Expansion or Relocation GG1146 2,200,000 -- 49,000 49,000 Fiber Optics Cable Plan GG1106 100,000 61,236 -- 61,236 Garmon Operations Center - Facility Improvements - Phase II GG1126 2,250,000 34,282 502,030 536,312 Heavy Equipment Replacement Project * GG1139 778,734 -- 299,350 299,350 Historic Town Facility Preservation GG1152 1,000,000 -- -- -- Land - 7117 Carpenter Fire Station Road GG5018 5,000 900 -- 900 Land - Land Banking (Main) GG5000 1,076,046 -- -- -- One Solution Software * GG1112 1,467,000 667,658 -- 667,658 PAMDR - Unnamed Tributary Swift Creek - Phase II * GG1082 1,438,882 1,405,069 12,500 1,417,569 PWUT Facility Improvements Phase I – Dixon Avenue Citizen Convenience Center GG1119 750,000 8,824 -- 8,824 Radio System Upgrade * GG1066 9,746,448 8,347,659 364,324 8,711,983 Replacement of the Computer-Aided Dispatch (CAD) System * GG1078 1,700,000 1,526,807 5,600 1,532,407 Sand/Salt Storage Structure GG1155 150,000 -- -- -- Sanitation and Recycling Truck Replacement * GG1075 4,467,793 -- 1,759,916 1,759,916 STM - 112 Summer Lakes Dr GG6006 879,595 123,144 8,876 132,020 STM - 1516 Kilarney GG6008 282,000 225,321 6,787 232,108
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TOWN OF CARY, NORTH CAROLINA GENERAL GOVERNMENTAL PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception to June 30, 2018
Schedule 7 Actual
Project Prior Current Total Authorization Years Year To Date
Asset-Related Projects (cont'd) Project # STM - Park James @ Kirkfield * GG7014 $306,876 286,811 20,065 306,876 STM - S Walker Street GG6013 10,000 -- -- -- STM - Town Properties Storm Drainage - MAIN- PS146 GG6000 560,819 -- -- -- Stormwater Jet Vacuum Truck GG1158 400,000 -- -- -- Stormwater Outpost and Camera * GG1159 200,000 -- 31,937 31,937 Town Website Overhaul GG1132 505,000 384,479 42,714 427,193 Work Order Management/311 GG1111 850,000 789,078 -- 789,078
Total Expenditures 32,262,393 14,139,637 3,582,909 17,722,546
Less: Completed Projects (noted by *) (16,763,207) (12,234,004) (2,503,561) (14,737,565)
Construction-in-Progress 15,499,186 1,905,633 1,079,348 2,984,981
Expense Projects Project # ADA Improvements - Town Facilities GG1149 335,350 -- 65,056 65,056 AH - Affordable Housing Administration GG4004 49,145 47,832 -- 47,832 AH - Affordable Housing Main Project GG4000 84,913 -- -- -- AH - Downtown Rehabilitation and Façade GG4002 393,591 198,060 123,625 321,685 AH - Housing Rehabilitation GG4001 965,211 594,930 144,698 739,628 AH - Minimum Housing Demolition GG4005 99,500 26,389 28,600 54,989 Cary Green Pgm - NFWF/Wells Fargo Grant GG1143 54,078 47,527 -- 47,527 Facility Painting Interior and Exterior - FY2018 * GG1151 70,000 -- 69,798 69,798 Facility Security * GG1138 100,000 328 48,634 48,962 Historic Preservation Implementation Activities GG1109 46,000 11,882 9,107 20,989 HVAC Replacements and Major Maintenance - FY 2018 GG1153 120,000 -- 77,139 77,139 Imagine Cary Act Stories GG1157 75,000 -- -- -- Land-Misc Unassigned Exp GG5001 142,180 137,979 3,200 141,179 Parking Lot Resurfacing and Renovations - FY 2015 GG1129 169,650 139,854 22,356 162,210 Parking Lot Resurfacing and Renovations - FY 2016 GG1141 124,650 110,749 -- 110,749 Parking Lot Resurfacing and Renovations - FY 2018 GG1154 101,000 -- -- -- Relamping of Town Facilities GG1142 225,000 25,000 11,371 36,371 Roof Assessment and Rehabilitation - FY 2017 GG1147 1,170,000 115,662 385,702 501,364 STM - 1600 Kilarney GG7020 20,000 -- -- -- STM - 910 Brookgreen GG7019 20,000 -- 14,163 14,163 STM - 937 Ralph Twiss/Clark * GG7009 49,670 49,669 -- 49,669 STM - Joel Ct @ Bayoak Drive GG7015 222,000 21,439 18,421 39,860 STM - Storm Drainage - Private - MAIN - PS35 GG7000 341,223 11,693 -- 11,693
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GENERAL GOVERNMENTAL PROJECT SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA GENERAL GOVERNMENTAL PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE-BUDGET AND ACTUAL From Inception to June 30, 2018
Schedule 7 Actual
Project Prior Current Total Authorization Years Year To Date
Expense Projects (cont'd) STM - Two Creeks Near Plantree GG7017 $75,000 22,949 13,955 36,904 STM - Westhigh Near Jodhpur GG7016 50,000 35,085 -- 35,085 Stormwater Condition Assessment - FY 2015 GG1130 1,250,000 105,807 255,644 361,451 Town Hall Pedestrian Bridge GG1156 300,000 -- 49,175 49,175 Upgrade Pedestrian Crossings (Relocation of Push Buttons) - FY 2015 GG1135 120,000 17,580 4,999 22,579 Total Expenditures 6,773,161 1,720,414 1,345,643 3,066,057 Less: Completed Projects (noted by *) (219,670) (49,997) (118,432) (168,429) Other Projects-in-Progress 6,553,491 1,670,417 1,227,211 2,897,628
TOTAL EXPENDITURES 39,035,554 15,860,051 4,928,552 20,788,603
Reimbursements from Utility System Enterprise Fund (81,771) (81,771) -- (81,771)
TOTAL EXPENDITURES, net 38,953,783 15,778,280 4,928,552 20,706,832
Total Completed Projects (16,982,877) (12,284,001) (2,621,993) (14,905,994)
TOTAL PROJECTS IN PROGRESS 21,970,906 3,494,279 2,306,559 5,800,838
Revenues Under Expenditures, net of completed projects (21,916,828) (3,446,057) (2,300,703) (5,746,760)
OTHER FINANCING SOURCES (USES) Sale of Assets -- 3,400 -- 3,400 Installment Purchase Proceeds 2,000,000 -- -- -- Transfers In, net General Fund 22,669,426 14,943,076 7,726,350 22,669,426 Capital Reserve Sub-Fund 12,962,061 11,758,761 (1,135,019) 10,623,742 Utility System Enterprise Fund (Operations Sub-Fund) 384,678 384,678 -- 384,678 911 Special Revenue Fund 855,171 855,171 -- 855,171
TOTAL OTHER FINANCING SOURCES 38,871,336 27,945,086 6,591,331 34,536,417
Less: Completed Projects (16,954,508) (15,828,480) 1,208,891 (14,619,589)
Total Other Financing Sources, net of completed projects 21,916,828 12,116,606 7,800,222 19,916,828
Increase -- 8,670,549 5,499,519 14,170,068
Adjustment for Completed Projects -- 3,821,015 (3,821,015) --
FUND BALANCE $ -- 12,491,564 1,678,504 14,170,068
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GENERAL CAPITAL RESERVE SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA GENERAL CAPITAL RESERVE SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL For the Year Ended June 30, 2018 With Comparative Totals For the Year Ended June 30, 2017
Schedule 8 2018 2017
Variance Positive
Budget Actual (Negative) Actual REVENUES Vehicle Licenses $1,199,279 1,413,007 213,728 1,296,181 Powell Bill 3,772,111 3,849,600 77,489 3,822,179 Payments in Lieu of Recreation Land and Greenway Dedications -- 4,623,330 4,623,330 4,533,629 Payments in Lieu of Streets -- 1,795,455 1,795,455 760,155 Utility Sales Tax 616,272 603,297 (12,975) 617,909 Transportation Development Fees 1,300,384 2,364,446 1,064,062 1,838,189 Investment Earnings, net of market adjustment 1,313,235 507,052 (806,183) 262,863 Miscellaneous 181,467 186,686 5,219 186,686
TOTAL REVENUES 8,382,748 15,342,873 6,960,125 13,317,791
OTHER FINANCING SOURCES (USES) Transfers In (Out), net General Fund 184,000 184,000 -- -- Street Project Sub-Fund (6,837,575) (5,939,562) 898,013 (6,999,085) Downtown Project Sub-Fund --- --- -- (150,000) Parks, Recreation and Cultural Resources Sub-Fund (3,165,121) (2,756,327) 408,794 (5,534,392) Fire Project Sub-Fund (97,500) (44,286) 53,214 727,461 General Governmental Project Sub-Fund (1,203,300) 1,135,019 2,338,319 (666,629) Appropriation from Fund Balance 2,736,748 -- (2,736,748) --
TOTAL OTHER FINANCING USES, net (8,382,748) (7,421,156) 961,592 (12,622,645)
Revenues and Other Sources Over Expenditures and Other Uses $ -- 7,921,717 7,921,717 695,146
FUND BALANCE - Beginning of Year 33,000,860 32,305,714
FUND BALANCE - End of Year $40,922,577 33,000,860
UTILITY SYSTEM ENTERPRISE FUND
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UTILITY SYSTEM ENTERPRISE FUND The Utility System Enterprise Fund consists of four sub-funds: Utility System Operations Fund, Water Project Fund, Sewer Project Fund and the Utility System Capital Reserve Fund. These funds are combined and treated as one fund in the Basic Financial Statements. The following statements are included as supplementary information.
Combining Statement of Net Position – Sub-fund breakdown of balance sheet information from the Basic Financial Statements.
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Sub-fund breakdown of information from the Basic Financial Statements.
Utility System Operations Schedule of Revenues, Expenditures, and Changes in Fund Net Position – Budget to actual comparison (non-GAAP) of the operations sub-fund with a reconciliation to the full accrual combining statement.
Water and Sewer Project Schedules of Revenues, Expenditures, and Changes in Fund Net Position – Detail of multi-year projects and the associated revenue and expenditure budgets to actual comparisons (non-GAAP) with a reconciliation to the full accrual combining statement. Each sub-fund is presented separately.
Utility System Capital Reserve Schedule of Revenues, Expenditures and Changes in Fund Net Position – Budget to actual comparison (non-GAAP) for the annually budgeted Capital Reserve Fund with a reconciliation to the full accrual combining statement.
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Schedule 9 Utility System Water Sewer Utility System June 30, Operations Projects Projects Capital Reserve 2018 2017
ASSETS
Current Assets Equity in Pooled Cash and Investments $58,580,038 82,015,387 66,841,779 64,782,214 272,219,418 265,371,643 Accrued Interest on Investments 254,275 -- -- 719,540 973,815 785,300 Accounts Receivable, net of allowance for doubtful accounts 13,802,463 3,027,582 158,229 39,457 17,027,731 13,043,943 Equity in Pooled Cash and Investments-Restricted 2,166,097 4,053,637 3,258,912 119,232 9,597,878 21,996,409
TOTAL CURRENT ASSETS 74,802,873 89,096,606 70,258,920 65,660,443 299,818,842 301,197,295
Non-Current Assets Capital Assets Land, Land Improvements and Construction in Progress 36,244,373 102,083,472 56,504,414 -- 194,832,259 207,392,479 Other Capital Assets, net of accumulated depreciation 633,146,977 -- -- -- 633,146,977 601,038,029
TOTAL NON-CURRENT ASSETS, net 669,391,350 102,083,472 56,504,414 -- 827,979,236 808,430,508
TOTAL ASSETS 744,194,223 191,180,078 126,763,334 65,660,443 1,127,798,078 1,109,627,803
DEFERRED OUTFLOW OF RESOURCES Deferred Contributions to Pension Plans 1,062,489 -- -- -- 1,062,489 3,964,183 Deferred Contributions to OPEB 1,622,359 -- -- -- 1,622,359 -- Deferred Charge on Debt Refinancings 1,141,926 -- -- -- 1,141,926 2,127,208
TOTAL DEFERRED OUTFLOW OF RESOURCES 3,826,774 -- -- -- 3,826,774 6,091,391
LIABILITIES AND NET ASSETS
Current liabilities Accounts Payable and Accrued Liabilities 2,042,369 4,693,448 1,114,551 119,232 7,969,600 7,026,378 Debt Payable 12,540,381 -- --- -- 12,540,381 12,946,373 Accrued Debt Interest Payable 1,411,834 -- --- -- 1,411,834 1,491,265 Retainage Payable -- 3,321,594 54,620 -- 3,376,214 2,905,236 Compensated Absences 1,079,025 -- -- -- 1,079,025 1,043,433 Developer Fee Credits -- -- -- 206,000 206,000 1,289,000 Advance from Customers -- -- -- (2,895) (2,895) 32,964 Miscellaneous 159,500 -- -- 860,620 1,020,120 1,282,120
TOTAL CURRENT LIABILITIES 17,233,109 8,015,042 1,169,171 1,182,957 27,600,279 28,016,769
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Schedule 9 Utility System Water Sewer Utility System June 30, Operations Projects Projects Capital Reserve 2018 2017
Non-Current liabilities Debt Payable, net of deferred premium/discount $296,159,765 -- -- -- 296,159,765 309,915,143 Deposits 2,134,776 -- -- -- 2,134,776 2,101,598 Unearned Revenue 755,958 -- -- -- 755,958 831,402 Compensated Absences 302,039 -- -- -- 302,039 208,135 Developer Fee Credits -- -- -- 2,985,677 2,985,677 2,123,047 Unfunded Pension Obligation 1,512,517 -- -- -- 1,512,517 2,608,917 Unfunded Other Post-Employment Benefits 27,374,872 -- -- -- 27,374,872 11,779,513 Miscellaneous 46,200 -- -- -- 46,200 205,700
TOTAL OTHER LIABILITIES 328,286,127 -- -- 2,985,677 331,271,804 329,773,455
TOTAL LIABILITIES 345,519,236 8,015,042 1,169,171 4,168,634 358,872,083 357,790,224
DEFERRED INFLOW OF RESOURCES Pension Deferrals 624,007 -- -- -- 624,007 2,386,197 OPEB Deferrals 2,657,149 -- -- -- 2,657,149 --
TOTAL DEFERRED OUTFLOW OF RESOURCES 3,281,156 -- -- -- 3,281,156 2,386,197
TOTAL NET POSITION 399,220,605 183,165,036 125,594,163 61,491,809 769,471,613 755,542,773
Adjustment for Internal Service Fund Activities 1,304,063 -- -- -- 1,304,063 757,337
TOTAL NET POSITION - Business-Type Activities $400,524,668 183,165,036 125,594,163 61,491,809 770,775,676 756,300,110
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FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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Schedule 10 Utility System Water Sewer Utility System June 30,
Operations Projects Projects Capital Reserve 2018 2017 OPERATING REVENUES
Charges for Services $80,045,254 -- -- -- 80,045,254 74,415,810 Other Operating Revenues 1,991,851 -- -- -- 1,991,851 2,164,793 TOTAL OPERATING REVENUES 82,037,105 -- -- -- 82,037,105 76,580,603
OPERATING EXPENSES Administrative 10,647,713 -- -- -- 10,647,713 9,581,011 Field Operations 10,028,912 -- -- -- 10,028,912 9,783,260 Utility Systems Management 4,170,047 -- -- -- 4,170,047 3,906,790 Water Reclamation Facilities 9,764,136 -- -- -- 9,764,136 10,660,355 Cary/Apex Water Treatment Plant 7,008,473 -- -- -- 7,008,473 6,550,129 Miscellaneous Utility System Projects --- 1,246,094 2,200,290 -- 3,446,384 5,272,878 Depreciation 18,120,833 -- -- -- 18,120,833 16,680,476 TOTAL OPERATING EXPENSES 59,740,114 1,246,094 2,200,290 -- 63,186,498 62,434,899
OPERATING INCOME (LOSS) 22,296,991 (1,246,094) (2,200,290) -- 18,850,607 14,145,704
NONOPERATING REVENUES (EXPENSES) Water and Sewer Development Fees -- -- -- 11,517,606 11,517,606 14,090,798 Investment Earnings, net of market adjustment 271,163 200,692 880 914,761 1,387,496 517,213 Reimbursements 93,645 -- -- -- 93,645 95,309 Miscellaneous Revenue -- 224,770 163,397 -- 388,167 7,948 Reimbursement to Governmental Activities for Open Space (822,264) -- -- -- (822,264) (862,663) Interest Expense, net of amount capitalized (9,975,323) -- -- -- (9,975,323) (5,748,348) Bond Service Expense (12,213) -- -- -- (12,213) (6,349) Debt Issuance Expense (784,680) -- -- -- (784,680) (436,786) Bond Refunding Loss Amortization (401,085) -- -- -- (401,085) (417,371) Sale of Capital Assets 95,201 -- -- -- 95,201 57,777 TOTAL NONOPERATING REVENUE (EXPENSE) (11,535,556) 425,462 164,277 12,432,367 1,486,550 7,297,528
INCOME (LOSS) BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS 10,761,435 (820,632) (2,036,013) 12,432,367 20,337,157 21,443,232
Capital Contributions 8,751,277 -- -- -- 8,751,277 11,945,486 Transfers between Sub-Funds, net (41,666,455) 28,116,845 15,445,151 (1,895,541) -- --
CHANGE IN NET POSITION (22,153,743) 27,296,213 13,409,138 10,536,826 29,088,434 33,388,718 Adjustment for Internal Service Activities 546,725 -- -- -- 546,725 337,437
CHANGE IN NET POSITION - Business-Type Activities (21,607,018) 27,296,213 13,409,138 10,536,826 29,635,159 33,726,155
NET POSITION - Beginning of Year, Business-Type Activities 400,051,345 157,440,059 147,858,984 50,949,722 756,300,110 722,573,955 Change in Accounting Principal - Pensions (15,159,593) -- -- -- (15,159,593) -- NET POSITION - Beginning of Year, Business-Type Activities, restated 384,891,752 157,440,059 147,858,984 50,949,722 741,140,517 722,573,955
Reclassifications: Reclassification of Long-term Debt & Other Liabilities (5,261) -- -- 5,261 -- -- Reclassification of Capital Assets Transferred from Construction-in-Progress 37,245,195 (1,571,236) (35,673,959) -- -- -- TOTAL NET POSITION - End of Year, Business-Type Activities $400,524,668 183,165,036 125,594,163 61,491,809 770,775,676 756,300,110
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FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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Schedule 11 2018 2017
Variance Positive
Budget Actual (Negative) Actual REVENUES
Operating Revenues Charges for Services Water $30,525,511 32,896,450 2,370,939 29,554,962 Sewer 46,064,477 46,857,404 792,927 44,860,848 TOTAL CHARGES FOR SERVICES 76,589,988 79,753,854 3,163,866 74,415,810
Other Operating Revenues Connection Fees 833,073 777,405 (55,668) 891,869 Inspection Fees 350,000 330,538 (19,462) 331,840 Reconnection Fees 135,320 122,769 (12,551) 120,711 Pretreatment Program Fees 186,265 181,440 (4,825) 187,661 Cross Connection Inspection Fees 265,000 272,700 7,700 262,500 Penalties 282,037 275,597 (6,440) 295,335 Biosolids product 44,300 64,429 20,129 44,011 Miscellaneous Revenues 19,155 (33,027) (52,182) 30,866 TOTAL OTHER OPERATING REVENUES 2,115,150 1,991,851 (123,299) 2,164,793
TOTAL OPERATING REVENUES 78,705,138 81,745,705 3,040,567 76,580,603
NON-OPERATING REVENUES Investment Earnings 568,260 895,906 327,646 971,003 Market Adjustment -- (624,743) (624,743) (781,463) Investment Earnings, net 568,260 271,163 (297,097) 189,540
TOTAL REVENUES 79,273,398 82,016,868 2,743,470 76,770,143
EXPENDITURES
ADMINISTRATIVE Utility Administration (7010) Personnel Services 703,841 692,173 11,668 627,037 Operations & Maintenance 80,291 58,761 21,530 72,484 TOTAL 784,132 750,934 33,198 699,521
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FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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Schedule 11 2018 2017
Variance Positive
Budget Actual (Negative) Actual Water Resources (3500) Personnel Services $2,003,741 2,003,736 5 1,727,261 Operations & Maintenance 510,832 375,792 135,040 297,948 Reimbursement from Utility Sewer Projects -- -- -- (83,193) TOTAL, net 2,514,573 2,379,528 135,045 1,942,016
Pretreatment (7012) Personnel Services 379,591 379,545 46 364,795 Operations & Maintenance 48,905 34,875 14,030 32,242 Capital Outlays 47,607 47,603 4 -- TOTAL 476,103 462,023 14,080 397,037
Utility Accounts (4440) Personnel Services 1,174,182 1,122,801 51,381 1,146,079 Operations & Maintenance 1,259,820 999,736 260,084 842,535 Capital Outlays 34,000 3,776 30,224 3,558 TOTAL 2,468,002 2,126,313 341,689 1,992,172
Other Administrative Costs Payment to Health Internal Service Fund 105,224 105,224 -- 89,430 Payment to General Fund for Self Insurance 240,936 240,936 -- 225,500 Payment to General Fund for Indirect Costs 3,295,074 3,295,073 1 3,323,125 Reimbursement from Apex for Indirect Costs -- (68,897) 68,897 (209,742) TOTAL, net 3,641,234 3,572,336 68,898 3,428,313
TOTAL ADMINISTRATIVE, net 9,884,044 9,291,134 592,910 8,459,059
FIELD OPERATIONS Water Distribution and Wastewater Collection (7020) Personnel Services 6,944,035 6,526,369 417,666 6,228,902 Operations & Maintenance 4,328,855 3,456,754 872,101 3,423,188 Capital Outlays 162,280 282,667 (120,387) 139,117 TOTAL FIELD OPERATIONS, net 11,435,170 10,265,790 1,169,380 9,791,207
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FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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Schedule 11 2018 2017
Variance Positive
Budget Actual (Negative) Actual UTILITY SYSTEMS MANAGEMENT Water and Wastewater Pumping (7030) Personnel Services $1,552,479 1,519,597 32,882 1,760,850 Operations & Maintenance 2,371,276 1,850,495 520,781 1,948,946 Capital Outlays 357,751 205,984 151,767 282,167 TOTAL 4,281,506 3,576,076 705,430 3,991,963
Reclaimed Water (7031) Personnel Services $164,850 147,068 17,782 -- Operations & Maintenance 563,777 465,409 98,368 -- TOTAL 728,627 612,477 116,150 --
TOTAL UTILITY SYSTEMS MANAGEMENT, net 5,010,133 4,188,553 821,580 3,991,963
WASTEWATER TREATMENT FACILITIES North Cary Wastewater Treatment Facility (7051) Personnel Services 1,503,667 1,486,871 16,796 1,414,651 Operations & Maintenance 2,650,187 2,020,132 630,055 3,304,944 Capital Outlays 131,625 115,938 15,687 100,869 TOTAL 4,285,479 3,622,941 662,538 4,820,464
South Cary Wastewater Treatment Facility (7052) Personnel Services 1,835,401 1,822,722 12,679 1,710,131 Operations & Maintenance 2,600,825 2,099,848 500,977 2,080,467 Capital Outlays 74,176 72,683 1,493 43,360 TOTAL 4,510,402 3,995,253 515,149 3,833,958
Western Wake Regional Water Reclamation Facility (7055) Personnel Services 1,619,254 1,557,396 61,858 1,619,654 Operations & Maintenance 2,397,808 2,142,799 255,009 1,939,584 Capital Outlays 40,570 32,385 8,185 14,801 Reimbursement from Apex (1,572,318) (1,518,467) (53,851) (1,501,255) TOTAL, net 2,485,314 2,214,113 271,201 2,072,784
TOTAL WASTEWATER TREATMENT FACILITIES, net 11,281,195 9,832,307 1,448,888 10,727,206
WATER TREATMENT PLANT (7053) Personnel Services 2,452,569 2,452,469 100 2,353,571 Operations & Maintenance 6,796,957 6,564,052 232,905 5,436,556 Capital Outlays 54,590 53,870 720 -- Reimbursement from Apex (2,012,066) (1,934,984) (77,082) (1,366,291) TOTAL WATER TREATMENT PLANT, net 7,292,050 7,135,407 156,643 6,423,836
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FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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Schedule 11 2018 2017
Variance Positive
Budget Actual (Negative) Actual REMOTE WATER INFRASTRUCTURE Personnel Services 157,896 138,328 19,568 -- Operations & Maintenance 168,438 69,313 99,125 -- Capital Outlays 27,179 27,178 1 -- TOTAL REMOTE WATER INFRASTRUCTURE 353,513 234,819 118,694 --
DEBT SERVICE Long-term Debt Principal Payment $13,021,817 12,959,082 62,735 12,063,987 State Revolving Loan Partner Reimbursements -- (75,444) 75,444 (75,444) Net Principal Payment 13,021,817 12,883,638 138,179 11,988,543 Interest Expense 11,666,074 11,554,973 111,101 11,051,685 State Revolving Loan Partner Reimbursements -- (18,201) 18,201 (19,865) Net Interest Expense 11,666,074 11,536,772 129,302 11,031,820
TOTAL CARY DEBT SERVICE, net 24,687,891 24,420,410 267,481 23,020,363
Paid to General Fund for Open Space Debt Service 822,264 822,264 -- 862,663
TOTAL DEBT SERVICE 25,510,155 25,242,674 267,481 23,883,026
TOTAL EXPENDITURES 70,766,260 66,190,684 4,575,576 63,276,297
Revenues Over Expenditures 8,507,138 15,826,184 7,319,046 13,493,846
OTHER REVENUES (EXPENDITURES) Transfers Out, net Sewer Project Sub-Fund (15,730,615) (15,730,615) -- (4,337,488) Water Project Sub-Fund (25,935,840) (25,935,840) -- (2,346,309) Bond Service Expenses (31,200) (12,213) 18,987 (6,349) Debt Issuance Costs & Expenses (900,000) (784,680) 115,320 (436,786) Debt Issued 117,827,552 117,734,236 (93,316) 442,350 Payment to Escrow for Advance Defeasance of Debt (116,927,552) (116,927,552) -- -- Receipts from Sale of Assets 10,000 95,201 85,201 57,777 Appropriation from Fund Balance 33,180,517 -- (33,180,517) -- TOTAL OTHER EXPENDITURES, net (8,507,138) (41,561,463) (33,054,325) (6,626,805)
Revenues Over Expenditures (Including Other Expenditures) $ -- (25,735,279) (25,735,279) 6,867,041
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FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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Schedule 11 2018 2017
Variance Positive
Budget Actual (Negative) Actual ADJUSTMENT TO ACCRUAL BASIS Add (Deduct) Revenue Adjustments:
Contributed Assets $8,751,277 11,945,486 Charge Refunds (Durham Water Revenue) 291,400 --
Expenditure Adjustments: Unfunded Other Post-Employment Expense (1,470,556) (931,458) Pension Expense Credit (43,104) (147,183) Capital Outlays 545,125 332,485 Depreciation (18,120,833) (16,680,476) Increase in Compensated Absences Liability (129,497) (238,218) Durham Water Expense 262,000 (127,000) Long-term Lease Expense, net 164,761 23,100
Debt Related Adjustments: Issuance of Long-Term Debt (806,684) (442,350) Long-term Debt Principal Payment (gross) 12,959,082 12,063,987 Bond Premium Amortization & Adjustment 1,500,455 1,481,213 Bond Discount Amortization (236) (567) Deferred Loss on Refunding Amortization (401,085) (417,371) Capitalized Interest -- 3,910,299 Decrease Debt Interest Payable 79,431 (87,608)
Total Accrual Adjustment 3,581,536 10,684,339
CHANGE IN NET POSITION (22,153,743) 17,551,380
Adjustment for Internal Service Activities 546,725 337,437
CHANGE IN NET POSITION - Business-Type Activities (21,607,018) 17,888,817
NET POSITION - Beginning of Year, Business-Type Activities 400,051,345 368,233,381
Change in Accounting Principal - Pensions (15,159,593) --
NET POSITION - Beginning of Year, Business-Type Activities - Restated 384,891,752 368,233,381
Reclassification Between Utility Sub-Funds, net 37,239,934 13,929,147
NET POSITION - End of Year, Business-Type Activities $400,524,668 400,051,345
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FROM INCEPTION TO JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA WATER PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) From Inception To June 30, 2018
Schedule 12 Actual
Project Prior Current Total Authorization Years Year To Date
REVENUES
Investment Earnings $56,214 50,244 200,692 250,936 Raleigh Reimbursement 510,000 -- -- --
TOTAL REVENUES 566,214 50,244 200,692 250,936
EXPENDITURES
Asset-Related Projects Project # Annexation - Franklin Heights Waterline WT5017 416,250 400,390 11,516 411,906 Annexation - Pink Acres Street Water Extension WT5018 130,000 -- 120,987 120,987 Aquastar Additional Infrastructure WT1228 75,000 -- -- -- Arthur Pierce Road Water Line Connector WT1252 500,000 -- -- -- Cary / Raleigh Water System Mutual Aid Interconnection Project WT1195 1,313,000 858,977 35,764 894,741 Cary Parkway NC54 Waterline Connector WT1207 200,000 5,986 -- 5,986 Cary Parkway Southwest Water Line Extension WT1161 8,650,000 423,403 65,502 488,905 Cary/Apex Water Treatment Facility – Equipment Storage Building WT1236 50,000 -- -- -- Cary/Apex Water Treatment Facility – Future Expansion WT1289 700,000 -- 525,300 525,300
Cary/Apex Water Treatment Facility – Jordan Lake Allocation Capital Costs WT1239 655,743 -- -- --
Cary/Apex Water Treatment Facility – Laboratory Information Management System WT1270 175,000 -- 32,303 32,303 Cary/Apex Water Treatment Facility – New Clearwell WT1240 5,400,000 -- -- -- Cary/Apex Water Treatment Plant - Phase III Expansion WT1148 77,500,000 71,534,100 3,241,915 74,776,015 Cary/Apex Water Treatment Plant - Air Release Valve Upgrades for 42-inch Water Transmission Line * WT1206 1,075,000 107,932 -- 107,932 Cary/Apex Water Treatment Plant - Lake Aeration Mixing System WT1163 4,876,000 4,536,099 58,620 4,594,719
Cary/Apex Water Treatment Plant - Process Conversion to Ozone/Biofiltration WT1271 500,000 -- -- -- Cary/Apex Water Treatment Plant - Raw Water Transmission Pipeline WT1194 22,250,000 2,733,953 9,101,751 11,835,704 Cary/Apex Water Treatment Plant - Residuals Transfer Pump Replacements WT1221 400,000 -- -- -- Cary/Apex Water Treatment Plant - Surge Tanks WT1272 720,000 -- -- -- Cary/Apex Water Treatment Plant - Water System Radio Software and Antennas WT1273 400,000 -- -- -- Cary-Apex-Chatham Interconnection WT1254 50,000 -- -- -- Cary-Apex-Holly Springs Interconnection WT1255 100,000 -- -- --
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FROM INCEPTION TO JUNE 30, 2018
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Schedule 12 Actual
Project Prior Current Total Authorization Years Year To Date
Asset-Related Projects (cont'd) Project #
Crossroads Ground Storage Tank and Booster Pump Station WT1242 $5,600,000 76,124 376,157 452,281 Davis Drive Booster Pump Station Modifications WT1257 125,000 -- -- -- Extend Water Mains - FY 2017 WT1259 306,216 -- 250,232 250,232 Extend Water Mains - FY 2018 WT1274 302,447 -- 89,653 89,653 Green Level West Road Water Line - Phase III WT1212 2,400,000 -- 444,673 444,673 Green Level West Road Water Line Phase I WT1129 3,571,000 2,664,710 620,671 3,285,381 Heavy Equipment Replacement - Water * WT1275 200,000 -- 117,086 117,086 Holly Brook Subdivision Water Lines WT1244 2,776,439 141,392 919,432 1,060,824 Holt Road to Davis Drive Water Line Connection WT1166 1,920,000 48,962 18,176 67,138 Infrastructure GIS Asset Data - Water WT1276 200,000 -- -- -- Jenks-Carpenter/Holt Road Water Line Reinforcement WT1178 4,253,000 20,611 950 21,561 Kildaire Farm Road Water Line Reinforcement - Central WT1245 3,100,000 5,950 -- 5,950 Kilmayne Water Storage Tank WT1214 7,750,000 1,165,641 3,910,417 5,076,058 Kit Creek Road Water Line Connection WT1223 725,000 36,374 35,711 72,085 Large Valve Repair/Replacement - FY 2009 * WT1167 200,000 138,515 9,375 147,890 Maynard Road Waterline Reinforcement - Southeast WT1277 1,590,000 -- 32 32 Maynard Road Waterline Reinforcement - Southwest - Ph 2 WT1278 520,000 -- 40,252 40,252 Morrisville Parkway Water Line Connections WT1279 350,000 -- -- -- NC-540/Morrisville Parkway Water Line WT1288 750,000 -- -- -- NC-540 Western Wake Parkway Water Conflicts WT1171 4,606,460 3,756,185 -- 3,756,185 NC55 Water Line Extension - Phase II WT1097 2,337,000 9,438 240 9,678 NCDOT I-5506 1-40 and Aviation Parkway Water Line Relocation WT1280 350,000 -- 128,071 128,071 New Water Storage Tank Sites WT1260 1,000,000 -- -- -- Old Apex Road Water Line Reinforcement WT1172 1,694,000 5,987 38,008 43,995 Old Apex Tank Flow Meter and Control Valve and Vault * WT1198 125,000 104,223 -- 104,223 Old Apex Tank Modeling Study and Additional Storage Improvements * WT1199 630,000 365,001 1,680 366,681 Plumtree Tank Modifications WT1216 2,275,000 1,532,602 425,925 1,958,527 TCAP - Streetscape Water Upgrade WT1157 1,313,000 785,373 839 786,212 Towerview Court Water Line Interconnection WT1261 75,000 -- 4,178 4,178
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Schedule 12 Actual
Project Prior Current Total Authorization Years Year To Date
Asset-Related Projects (cont'd) Project #
Truck, Dump, 12 - 14 Cubic Yard - #2079 - Replacement - Water * WT1263 $161,059 -- 157,823 157,823 Tryon Road Water Line Upsizing WT1281 220,000 -- -- Upgrade Water Lines - FY 2015 * WT1234 600,000 578,586 20,945 599,531 Upgrade Water Lines - FY 2016 WT1247 5,000,000 4,195,755 662,282 4,858,037 Upgrade Water Lines - FY 2017 WT1265 5,000,000 573,208 1,872,382 2,445,590 Upgrade Water Lines - FY 2018 WT1282 5,000,000 -- 25,774 25,774 Water Line Oversizings - FY 2017 WT1267 152,000 -- -- -- Water Line Oversizings - FY 2018 WT1283 160,000 -- -- -- Water Main Extensions - FY 2016 WT1243 302,777 46,252 242,243 288,495 Water System Monitoring Protection Project * WT1156 608,000 1,000 -- 1,000 Western Cary Water Storage Tank WT1189 9,310,000 1,690,142 3,228,023 4,918,165 White Oak Church Road Water Line WT1284 950,000 -- 50,378 50,378 Wimberly Road Water Line WT1142 4,306,000 337,380 191,025 528,405 Less: Local Government Reimbursements (27,440,887) (18,260,673) (4,035,051) (22,295,724) Total Expenditures 181,509,504 80,619,578 23,041,240 103,660,818 Less: Completed Projects (noted by *) (3,268,895) (1,270,432) (306,909) (1,577,341) Construction in Progress 178,240,609 79,349,146 22,734,331 102,083,477
Expense Projects Project #
Cary/Apex Water Treatment Facility - Filter Pipe Gallery Piping Removal WT1269 150,000 -- -- -- Cary/Apex Water Treatment Facility – Improvements Project – FY 2016 WT1238 30,000 -- 30,000 30,000
Cary/Apex Water Treatment Facility – Process Basin Rehabilitation/Restoration WT1241 4,000,000 257,620 448,787 706,407 Cary/Apex Water Treatment Plant - Clearwell Repainting WT1231 175,000 3,200 -- 3,200 Cary/Apex Water Treatment Plant - Improvements Project - FY 2015 WT1230 105,000 42,520 9,925 52,445 Cary/Apex Water Treatment Plant - Ozone Generator Reconditioning * WT1232 200,000 190,776 -- 190,776 Cary/Apex Water Treatment Plant - Raw Water Line Cleaning * WT1209 200,000 75,844 -- 75,844 Elevated Water Storage Tank Repainting - Carpenter Tank * WT1258 750,000 -- -- -- Harrison Elevated Water Tank Renovation * WT1213 1,100,000 634,811 -- 634,811
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Schedule 12 Actual
Project Prior Current Total Authorization Years Year To Date
Expense Projects (cont'd) Project #
Jordan Lake Partnership WT1177 $407,500 211,189 -- 211,189 Long Range Water Resources Plan * WT1193 1,604,607 1,447,797 111,200 1,558,997 NCDOT P-5201 Morrisville Pkwy RR Grade Sep * WT1227 406,116 202 405,913 406,115 Pressure Zone Separation Control Valve Improvements * WT1200 25,000 2,938 -- 2,938 Remote Water System Programmable Logic Controller Replacements and SCADA Upgrades WT1233 150,000 4,906 37,444 42,350 Throttling Valve at Surles Court Pump Station * WT1246 100,000 62,423 1,833 64,256 Water Main Condition Assessment Program WT1191 375,000 129,126 6,875 136,001 Water Resources Master Plan WT1249 500,000 20,097 245,163 265,260 Water Storage Tank Repainting - Old Apex * WT1285 150,000 -- -- -- Water System - Air Release Valve Replacements WT1268 300,000 -- 4,818 4,818 Water System – Critical Water Line Locating and Testing WT1250 525,000 113,502 61,498 175,000 Water System Master Plan WT1287 350,000 -- -- -- Water System – Valve Replacements - FY 2016 WT1251 125,000 -- -- -- Water System - Valve Replacements - FY 2017 WT1256 125,000 -- -- -- Water System - Valve Replacements - FY 2018 WT1286 125,000 -- 2,407 2,407 Water System Water Quality Enhancements WT1219 150,000 -- -- -- Less: Local Government Reimbursements (1,117,800) (131,090) (125,875) (256,965) Total Expenditures 11,010,423 3,065,861 1,239,988 4,305,849 Less: Completed Projects (noted by *) (4,443,723) (2,353,467) (518,946) (2,872,413) Other Projects-in-Progress 6,566,700 712,394 721,042 1,433,436
TOTAL EXPENDITURES 192,519,927 83,685,439 24,281,228 107,966,667 Total Completed Projects (7,712,618) (3,623,899) (825,855) (4,449,754) TOTAL PROJECT IN PROGRESS 184,807,309 80,061,540 23,455,373 103,516,913
Revenues Under Expenditures (184,241,095) (80,011,296) (23,254,681) (103,265,977)
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Schedule 12 Actual
Project Prior Current Total Authorization Years Year To Date
OTHER FINANCING SOURCES Debt Issued $68,882,835 68,882,835 -- 68,882,835 State Revolving Loan 2,617,514 2,499,183 -- 2,499,183 Transfers In, net Utility System Operations Sub-Fund 30,582,897 4,647,057 25,935,840 30,582,897 Capital Reserve Sub-Fund 89,870,467 84,426,600 5,443,869 89,870,469 TOTAL OTHER FINANCING SOURCES 191,953,713 160,455,675 31,379,709 191,835,384 Less: Completed Projects (7,712,618) (6,377,920) (1,334,698) (7,712,618)
Total Other Financing Sources, net of completed projects 184,241,095 154,077,755 30,045,011 184,122,766
Increase -- 74,066,459 6,790,330 80,856,789
Adjustment for Closed Projects -- 2,754,021 (2,754,021) -- FUND BALANCE $ -- 76,820,480 4,036,309 80,856,789
ADJUSTMENT TO ACCRUAL BASIS Add (Deduct)
Construction-in-Progress Current Year 23,041,240 Construction-in-Progress Write-Off (6,106) Proceeds from Water Connection 224,770
CHANGE IN NET POSITION 27,296,213 NET POSITION - Beginning of Year, Business-Type Activities 157,440,059
Reclassification Between Utility Sub-Funds, net (1,571,236)
NET POSITION - End of Year, Business-Type Activities $183,165,036
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TOWN OF CARY, NORTH CAROLINA SEWER PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) From Inception To June 30, 2018
Schedule 13 Actual
Project Prior Current Total
Authorization Years Year To Date
REVENUES
Intergovernmental Grants $1,315,677 1,215,676 100,000 1,315,676 Investment Earnings 350,387 291,751 880 292,631 Developer Reimbursements (Paid by Developers) 272,669 126,169 -- 126,169 Miscellaneous Reimbursements 261,746 261,747 -- 261,747
TOTAL REVENUES 2,200,479 1,895,343 100,880 1,996,223 Less: Completed Projects (600,119) (470,118) (880) (470,998)
Total Revenues, net of completed projects 1,600,360 1,425,225 100,000 1,525,225
EXPENDITURES
Asset-Related Projects Project # Annexation - Franklin Heights Sewer Line SW5017 787,000 714,218 335 714,553 Annexation - Pink Acres Street Sewer Extension SW5018 215,000 6,795 195,628 202,423 Biosolid Aeration System Improvements * SW1154 2,500,000 2,067,703 21,115 2,088,818 Blanche Drive Area Sewer Improvements SW1257 175,000 -- 2,166 2,166 Blanche Drive Pump Station Expansion - Inflow and Infiltration Reduction * SW1258 1,200,000 -- -- -- Carystone Pump Station Elimination SW1184 410,000 12,330 1,245 13,575 Copperleaf Reserve Easement Acquisition * SW1256 205,000 117,034 -- 117,034 Crabtree Interceptor/York Interceptor Improvements * SW1155 475,000 260,991 163,390 424,381 Extend Reclaimed Water Mains - FY 2012 SW1223 105,000 -- 23,991 23,991 Extend Reclaimed Water Mains - FY 2013 SW1241 110,250 -- -- -- Extend Reclaimed Water Mains - FY 2016 SW1286 127,628 -- -- -- Force Main Inspection & Rehabilitation - FY 2008 SW1156 3,600,000 2,745,149 34,679 2,779,828 Force Main Inspection and Rehabilitation - FY 2010 SW1202 2,500,000 253,190 33,306 286,496 Green Level Interceptor SW1130 7,510,969 7,148,434 8,390 7,156,824 Heavy Equipment - Sewer * SW1321 600,000 -- 531,429 531,429 Holly Brook – Phase I, II and III Sewer Extension SW1288 2,886,706 406,410 879,986 1,286,396 Holly Springs Road Sewer Rehabilitation * SW1259 365,000 275,903 65,772 341,675 I-40 Pump Station Improvements SW1322 200,000 -- 164,365 164,365 Jack Branch Interceptor SW1269 1,150,000 6,940 -- 6,940
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FROM INCEPTION TO JUNE 30, 2018
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Schedule 13 Actual
Project Prior Current Total
Authorization Years Year To Date Asset-Related Projects (cont'd) Project #
Kit Creek Basin Sanitary Sewer * SW1115 $971,548 47,500 -- 47,500 Kit Creek Pump Station Improvements * SW1235 1,300,000 1,280,170 2,038 1,282,208
Kit Creek Pump Station & Morris Branch Regional Pump Station Parallel Force Main along Green Level Church Rd. SW1323 2,000,000 -- -- -- Lower Swift Creek Parallel Interceptor SW1247 3,150,000 81,695 (56) 81,639 Lynn's Branch Parallel Interceptor SW1270 250,000 -- -- -- MacGregor Pump Station Elimination * SW1186 360,000 3,213 355,631 358,844 MM - Kit Creek Basin Sanitary Sewers * SW1132 5,471,452 3,008,536 46,117 3,054,653 MM - Northwest Cary Wastewater Conveyance to WWRWRF SW1157 818,000 809,805 -- 809,805 MM - Paramount Pump Station Elimination SW1191 2,010,000 144,051 42,562 186,613 MM - Telemetry Upgrades for Morrisville WW Pump Stations * SW1127 160,000 205,346 (45,346) 160,000 MM - York Interceptor Basin Improvements SW1260 1,650,000 1,376,914 22,321 1,399,235 Morris Branch Pump Station Improvements * SW1238 800,000 782,186 2,024 784,210 Nancy Branch Interceptor Capacity Improvements * SW1249 1,400,000 -- -- -- NCWRF - Diffused Air System SW1290 7,220,000 85,880 228,700 314,580 NCWRF - Forklift New * SW1324 110,000 -- 109,703 109,703 Northwestern Area/Jordan Lake Reclaimed Water Project Phase II SW1138 7,457,176 5,003,891 17,818 5,021,709 RDU Center Pump Station Force Main Replacement SW1308 1,570,000 -- 1,346,780 1,346,780 Reclaimed Water Line Oversizings - FY 2017 * SW1309 159,500 -- -- -- Reclaimed Water Line Oversizings - FY 2018 SW1326 167,475 -- -- -- Reclaimed Water Main Extensions - FY 2017 SW1305 134,010 -- -- -- Sanitary Sewer Oversizings - FY 2017 * SW1310 190,000 -- -- -- Sanitary Sewer Oversizings - FY 2018 SW1327 195,000 -- -- -- SCADA Conversion - North Cary Water Reclamation Facility SW1263 1,250,000 26,779 329,847 356,626 Sewer Flow Management Modeling Scenarios SW1264 450,000 46,496 71,000 117,496
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FROM INCEPTION TO JUNE 30, 2018
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Schedule 13 Actual
Project Prior Current Total
Authorization Years Year To Date Asset-Related Projects (cont'd) Project #
Sewer System Repair/Rehabilitation - FY 2012 * SW1232 $1,294,052 1,293,991 -- 1,293,991 Sewer System Repair/Rehabilitation - FY 2013 * SW1245 500,000 500,000 -- 500,000 Sewer System Repair/Rehabilitation - FY 2015 SW1279 1,600,000 1,025,179 331,822 1,357,001 Sewer System Repair/Rehabilitation - FY 2016 SW1303 2,730,407 390,191 74,558 464,749 Sewer System Repair/Replacement - FY 2017 SW1315 5,985,982 -- 334,586 334,586 Sewer System Repair/Replacement - FY 2018 SW1334 5,428,112 -- 28,933 28,933 SCWRF Headworks Upgrades SW1217 525,000 448,943 -- 448,943 SCWRF Improvements Project SW1266 435,000 260,020 -- 260,020 SCWRF - Replacement High Efficiency Turbo Blower - FY 2014 * SW1265 250,000 237,040 -- 237,040 SCWRF - Thermal Biosolids Dryer - Rotary Drum Replacement SW1302 1,200,000 -- -- -- SCWRF - Thermal Biosolids Dryer - Dewatered Cake Pump SW1301 225,000 43,900 35,338 79,238 Swift Creek Regional Pumping Station Improvements (Existing Equipment Improvements) SW1171 1,538,239 1,062,224 51,949 1,114,173 TCAP - Streetscape Sewer Upgrade SW1177 1,278,000 650,236 (1,060) 649,176 Terrace II Pump Station Elimination SW1287 250,000 2,750 2,962 5,712 Upper Crabtree Creek Pump Station, Force Main and Interceptor Parallel SW1239 4,180,000 254,382 750 255,132 Walnut Creek Pump Station Electrical Improvements * SW1174 450,000 432,488 -- 432,488 Wastewater Pump Station Improvements SW1175 1,794,014 1,198,675 9,002 1,207,677 Wastewater Pump Station Improvements - FY 2017 SW1319 604,213 13,460 67,318 80,778 Wastewater Pump Station Parallel Force Main - FY 2017 SW1320 6,370,452 6,320 76,731 83,051 Wastewater Pump Station Parallel Force Mains SW1176 7,154,548 4,019,796 5,738 4,025,534 Wastewater SCADA Project SW1121 1,266,694 1,019,378 47,110 1,066,488 Western Cary Collection System Odor Control SW1105 930,000 927,366 -- 927,366 Winding Pine Regional Pump Station, Gravity Sewer and Force Main SW1284 2,300,000 44,055 265,163 309,218
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FROM INCEPTION TO JUNE 30, 2018
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Schedule 13 Actual
Project Prior Current Total
Authorization Years Year To Date Asset-Related Projects (cont'd) Project #
WWRWMF - Beaver Creek Pump Station SW1146 $20,157,682 15,778,341 173,065 15,951,406 WWRWMF - W Cary Force Main South * SW1144 9,943,176 6,137,593 -- 6,137,593 WWRWMF - W Cary Pump Station Upgrade SW1143 11,279,482 9,000,774 179,158 9,179,932 WWRWMF - Effluent Pipeline Phase 2 * SW1182 30,720,840 22,642,366 23,935 22,666,301 WWRWMF - New Water Reclamation Facility * SW1123 4,017,427 -- 181,035 181,035 WWRWMF - Water & Sewer Policy Implementation * SW1200 2,358,645 1,373,487 -- 1,373,487 WWRWMF - SCADA * SW1148 3,570,954 3,520,533 13,528 3,534,061 Less: Local Government Reimbursements (14,977,466) (12,360,706) (139,131) (12,499,837) Total Expenditures 179,727,167 86,840,341 6,417,426 93,257,767 Less: Completed Projects (noted by *) (54,695,042) (35,358,186) (1,395,167) (36,753,353) Construction in Progress 125,032,125 51,482,155 5,022,259 56,504,414
Expense Projects Cleaning and Video Surveying of Sewer Interceptors - FY 2010 SW1203 2,884,500 1,557,121 443,307 2,000,428 Demolition of Lagoons - South Cary Water Reclamation Facility SW1251 325,000 32,390 2,615 35,005 Force Main Discharge Manhole Coating * SW1091 215,600 215,600 -- 215,600 Force Main Easement Clearing Project - Survey and Clear SW1252 200,000 70,844 9,400 80,244 Miscellaneous Pump Station Grinder Rebuild FY 2018 SW1336 150,000 -- 53,266 53,266 NCWRF - Clarifier Equipment Repair and Replacement SW1291 350,000 196,439 108,106 304,545 NCWRF - Continuous Three Train Operation SW1325 50,000 NCWRF - Diffuser and Air Piping Replacement – Digester #1 and #2 SW1292 500,000 34,536 31,320 65,856
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FROM INCEPTION TO JUNE 30, 2018
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Schedule 13 Actual
Project Prior Current Total
Authorization Years Year To Date Expense Projects Project#
NCWRF - Mixer Replacements SW1254 $700,000 491,363 79,788 571,151 NCWRF - Pavement Repairs * SW1272 50,000 48,235 -- 48,235 NCWRF - Variable Frequency Drive Replacement * SW1274 200,000 173,903 25,885 199,788 NCWRF - Variable Frequency Drive Replacement SW1295 200,000 -- 25,128 25,128 Pump Station Variable Frequency Drive Replacements SW1296 125,000 -- -- -- Reclaimed Water System Blowoff Metering SW1276 210,000 8,565 158,920 167,485 SCWRF - Aeration Basin and Air Header Repairs SW1280 275,000 101,234 -- 101,234 SCWRF - Aeration Basin Blower Replacements * SW1328 325,000 -- -- -- SCWRF - Aeration Basin Recycle Pump Replacements SW1329 80,000 -- -- -- SCWRF - Clarifier Equipment Repair and Replacement SW1311 400,000 -- 143,525 143,525 SCWRF - Generator Automated Transfer Switch Replacement SW1312 90,000 -- -- -- SCWRF - Gravity Belt Thickener Rebuild SW1331 150,000 -- -- -- SCWRF - HVAC Replacement * SW1332 56,400 -- -- -- SCWRF - Peak Flow Management Study SW1330 150,000 -- -- -- SCWRF - Roof Replacement * SW1299 74,300 56,488 12,212 68,700
SCWRF - Thermal Biosolids Dryer - Dewatered Cake Mixer Repair/Replacement SW1313 100,000 -- -- -- SCWRF - Thermal Dryer – Centrifuge Rebuild SW1300 175,000 64,016 -- 64,016 SCWRF - Thermal Biosolids Dryer - Induction Fan Replacement SW1314 100,000 -- -- -- SCWRF - Variable Frequency Drive Replacement SW1333 200,000 -- -- --
Sewer System Monitoring - Bloomberg Grant SW1337 100,000 -- -- --
Swift Creek Regional Pumping Station Improvements (Existing Equipment Improvements) SW1171 51,761 31,761 -- 31,761 Updated Reclaimed Water System Master Plan * SW1211 350,000 274,699 27,425 302,124
Walnut Creek Pump Station Check Valve Replacement and Wet Well Piping Repairs SW1240 265,000 139,466 -- 139,466
Waste Water System Master Plan Update SW1335 250,000 -- -- -- Total Expenditures 9,352,561 3,496,660 1,120,897 4,617,557 Less: Completed Projects (noted by *) (1,271,300) (768,926) (65,522) (834,448) Other Projects-in-Progress 8,081,261 2,727,734 1,055,375 3,783,109
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FROM INCEPTION TO JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA SEWER PROJECT SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) From Inception To June 30, 2018
Schedule 13 Actual
Project Prior Current Total
Authorization Years Year To Date
TOTAL EXPENDITURES $189,079,728 90,337,001 7,538,323 97,875,324
Total Completed Projects (55,966,342) (36,127,112) (1,460,689) (37,587,801)
TOTAL PROJECTS IN PROGRESS 133,113,386 54,209,889 6,077,634 60,287,523
Revenues Under Expenditures (131,513,026) (52,784,664) (5,977,634) (58,762,298)
OTHER FINANCING SOURCES (USES) State Revolving Loan 1,352,886 1,546,184 -- 1,546,184 Debt Issued (includes budgeted, but not issued) 87,730,830 75,068,302 -- 75,068,302 Transfers In, net Utility System Operations Sub-Fund 30,766,403 15,035,788 15,730,615 30,766,403 Capital Reserve Sub-Fund 67,029,130 57,810,027 (285,464) 57,524,563
TOTAL OTHER FINANCING SOURCES 186,879,249 149,460,301 15,445,151 164,905,452
Less: Completed Projects (55,366,223) (45,845,397) 8,728,593 (37,116,804)
Total Other Financing Sources, net of completed projects 131,513,026 103,614,904 24,173,744 127,788,648
Increase -- 50,830,240 18,196,110 69,026,350
Adjustment for Closed Projects -- 10,188,402 (10,188,402) -- FUND BALANCE $ -- 61,018,642 8,007,708 69,026,350
ADJUSTMENT TO ACCRUAL BASIS
Add (Deduct) Construction-in-Progress Current Year 6,417,426
Construction-in-Progress Write-Off & Other Adj (1,079,393)
Proceeds from Sewer Connection 63,397
CHANGE IN NET POSITION 13,409,138 NET POSITION - Beginning of Year, Business-Type Activities 147,858,984
Reclassification Between Utility Sub-Funds, net (35,673,959)
NET POSITION - End of Year, Business-Type Activities $125,594,163
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UTILITY SYSTEM CAPITAL RESERVE SUB-FUND - SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA UTILITY SYSTEM CAPITAL RESERVE SUB-FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) For the Year Ended June 30, 2018 With Comparative Totals For the Year Ended June 30, 2017
Schedule 14 2018 2017
Variance Positive
Budget Actual (Negative) Actual REVENUES Water Development Fees $3,671,150 4,217,596 546,446 5,068,852 Sewer Development Fees 5,310,269 6,702,037 1,391,768 7,553,844 Reclaimed Water Development Fees -- 382,864 382,864 303,871 Investment Earnings, net of market adjustment 1,921,590 914,761 (1,006,829) 274,809 Miscellaneous -- -- -- 7,948
TOTAL REVENUES 10,903,009 12,217,258 1,314,249 13,209,324
OTHER FINANCING SOURCES (USES) Transfers In (Out), net Transfer to Water Project Sub-Fund (5,443,869) (2,181,005) 3,262,864 (1,143,050) Transfer to Sewer Project Sub-Fund (10,175,587) 285,464 10,461,051 (5,515,273) Appropriation from Fund Balance 4,716,447 -- (4,716,447) --
TOTAL OTHER FINANCING USES, net (10,903,009) (1,895,541) 9,007,468 (6,658,323)
Revenues Over Other Financing Uses $ -- 10,321,717 10,321,717 6,551,001
ADJUSTMENT TO ACCRUAL BASIS Add Development Fee Credits Used 215,109 1,164,231
CHANGE IN NET POSITION 10,536,826 7,715,232
NET POSITION - Beginning of Year 50,949,722 44,728,437
Reclassification: Reclassification of Long-Term Liability 5,261 (1,493,947)
NET POSITION - End of Year $61,491,809 50,949,722
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INTERNAL SERVICE FUNDS
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INTERNAL SERVICE FUNDS Combining Statement of Net Position – Breakdown of balance sheet information from the Basic Financial Statements.
Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Breakdown of information from the Basic Financial Statements.
Combining Statement of Cash Flows – Breakdown of information from the Basic Financial Statements.
Garage Internal Service Fund Schedule of Revenues, Expenditures, and Changes in Fund Net Position – Budget to actual comparison (non-GAAP) of the Town’s internal service fund that accounts for fleet management.
Health Insurance Fund Schedule of Revenues, Expenditures, and Changes in Fund Net Position – Budget to actual comparison (non-GAAP) of the Town’s internal service fund that accounts for employee health and dental insurance premiums and claims.
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INTERNAL SERVICE FUNDS – COMBINING SCHEDULE OF NET POSITION TOWN OF CARY, NORTH CAROLINA
JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA INTERNAL SERVICE FUNDS COMBINING SCHEDULE OF NET POSITION June 30, 2018
Schedule 15 Fleet Health Management Insurance Total
ASSETS Current Assets
Equity in Pooled Cash and Investments $1,045,816 14,480,870 15,526,686 Accrued Interest on Investments 473 -- 473 Accounts Receivable, net of allowance for doubtful accounts -- 211,914 211,914 Inventories 71,499 -- 71,499 Equity in Pooled Cash and Investments-Restricted 9,000 -- 9,000 TOTAL CURRENT ASSETS 1,126,788 14,692,784 15,819,572
Non-Current Assets Capital Assets, net of accumulated depreciation 1,118,385 -- 1,118,385
TOTAL ASSETS 2,245,173 14,692,784 16,937,957
DEFERRED OUTFLOW OF RESOURCES Deferred Contributions to Pension Plans 136,912 -- 136,912 Deferred Contributions to OPEB 87,835 -- 87,835 TOTAL DEFERRED OUTFLOW OF RESOURCES 224,747 -- 224,747
LIABILITIES Current liabilities
Accounts Payable and Accrued Liabilities 214,511 281,174 495,685 Compensated Absences 51,157 -- 51,157
TOTAL CURRENT LIABILITIES 265,668 281,174 546,842
Non-Current liabilities Deposits 9,000 -- 9,000 Compensated Absences 14,320 -- 14,320 Claims Incurred But Not Reported -- 760,000 760,000 Unfunded Pension Obligation 206,778 -- 206,778 Unfunded Other Post-Employment Benefits 1,482,101 -- 1,482,101 TOTAL NON-CURRENT LIABILITIES 1,712,199 760,000 2,472,199
TOTAL LIABILITIES 1,977,867 1,041,174 3,019,041
DEFERRED INFLOW OF RESOURCES Pension Deferrals (19,668) -- (19,668) OPEB Deferrals 143,860 -- 143,860 TOTAL DEFERRED INFLOW OF RESOURCES 124,192 -- 124,192
NET POSITION Invested in Capital Assets, Net of Related Debt 1,118,385 -- 1,118,385 Unrestricted Net Position (750,524) 13,651,610 12,901,086
TOTAL NET POSITION $367,861 13,651,610 14,019,471
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INTERNAL SERVICE FUNDS – COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA INTERNAL SERVICE FUNDS COMBINING SCHEDULE OF REVENUES, EXPENSES, AND CHANGES IN FUND NET POSITION For the Year Ended June 30, 2018
Schedule 16
Fleet Health Management Insurance Total
OPERATING REVENUES Charges for Services $1,549,156 -- 1,549,156 Health and Dental Premiums -- 20,736,834 20,736,834 TOTAL OPERATING REVENUES 1,549,156 20,736,834 22,285,990
OPERATING EXPENSES Fleet Management Expense 1,622,588 -- 1,622,588 Insurance Claims & Administrative Fees -- 15,906,574 15,906,574 Depreciation 112,273 -- 112,273 TOTAL OPERATING EXPENSES 1,734,861 15,906,574 17,641,435
OPERATING INCOME (185,705) 4,830,260 4,644,555
NONOPERATING REVENUES Investment Earnings, net of market adjustment 1,398 -- 1,398 Gain on Sale of Assets 42,553 -- 42,553
TOTAL NONOPERATING REVENUE 43,951 -- 43,951
INCOME BEFORE TRANSFERS AND CAPITAL CONTRIBUTIONS (141,754) 4,830,260 4,688,506
Transfers In 88,782 1,342,378 1,431,160
CHANGE IN NET POSITION (52,972) 6,172,638 6,119,666
TOTAL NET POSITION - Beginning of Year 1,652,238 7,478,972 9,131,210 Change in Accounting Principle (1,231,405) -- (1,231,405) NET POSITION - Beginning of Year, restated 420,833 7,478,972 7,899,805
TOTAL NET POSITION - End of Year $367,861 13,651,610 14,019,471
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INTERNAL SERVICE FUNDS –COMBINING SCHEDULE OF CASH FLOWS TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA INTERNAL SERVICE FUNDS COMBINING SCHEDULE OF CASH FLOWS For the Year Ended June 30, 2018
Schedule 17 Fleet Health
Management Insurance Total OPERATING ACTIVITIES
Cash Received from Customers $1,549,157 20,902,905 22,452,062 Cash Paid for Goods and Services (654,779) -- (654,779) Cash Paid To or On Behalf of Employees for Services & Benefits (941,715) -- (941,715) Cash Paid for Health and Dental Claims -- (16,353,555) (16,353,555)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (47,337) 4,549,350 4,502,013
NONCAPITAL FINANCING ACTIVITIES Transfers In 88,782 1,342,378 1,431,160
NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 88,782 1,342,378 1,431,160
CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition and Construction of Capital Assets (211,255) -- (211,255) Proceeds Received from Sale of Assets 42,553 -- 42,553
NET CASH USED IN CAPITAL AND RELATED FINANCING ACTIVITIES (168,702) -- (168,702)
NET CASH USED IN INVESTING ACTIVITIES Investment Earnings Received, net of Unrealized Loss 2,040 -- 2,040
NET CASH PROVIDED BY INVESTING ACTIVITIES 2,040 -- 2,040
NET INCREASE (DECREASE) IN CASH AND INVESTMENTS (125,217) 5,891,728 5,766,511
CASH AND INVESTMENTS AT BEGINNING OF YEAR 1,180,033 8,589,142 9,769,175
CASH AND INVESTMENTS AT END OF YEAR $1,054,816 14,480,870 15,535,686
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TOWN OF CARY, NORTH CAROLINA INTERNAL SERVICE FUNDS COMBINING SCHEDULE OF CASH FLOWS For the Year Ended June 30, 2018
Schedule 17 Fleet Health
Management Insurance Total RECONCILIATION OF OPERATING LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES Operating Income (Loss) ($185,705) 4,830,260 4,644,555 Adjustments to Reconcile Operating Income to Net Cash Provided by (Used in) Operating Activities Depreciation 112,273 -- 112,273 Adjustment for LGERS Pension Expense 2,334 -- 2,334 Adjustment for Unfunded Other Post Employment Benefits 79,618 -- 79,618 Changes in Assets and Liabilities - Decrease in Accounts Receivable -- 166,071 166,071 (Increase) in Inventory (26,472) -- (26,472) Increase/(Decrease) in Accounts Payable and Accrued Liabilities (39,772) 258,670 218,898 Increase in Compensated Absences Liability 10,387 -- 10,387 Decrease in Miscellaneous Liability -- (705,651) (705,651) TOTAL ADJUSTMENTS 138,368 (280,910) (142,542)
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES ($47,337) 4,549,350 4,502,013
NONCASH TRANSACTIONS Effect of prior year adjustment for change in accounting principle related to OPEB 1,231,405 -- 1,231,405 Net Change in Net Assets from Non-cash Transactions (1,231,405) -- (1,231,405)
$ -- -- --
INTERNAL SERVICE FUNDS –COMBINING SCHEDULE OF CASH FLOWS TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA FLEET MANAGEMENT INTERNAL SERVICE FUND SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) For the Year Ended June 30, 2018 With Comparative Totals For the Year Ended June 30, 2017
Schedule 18 2018 2017
Variance Positive
Budget Actual (Negative) Actual REVENUES Vehicle Maintenance & Repair $1,644,743 1,549,156 (95,587) 1,608,078 Investment Earnings, net of market adjustment 2,350 1,398 (952) (1,140)
TOTAL REVENUES 1,647,093 1,550,554 (96,539) 1,606,938
EXPENDITURES (5660) Personnel Services 1,016,688 942,806 73,882 873,426 Operations & Maintenance 601,478 565,746 35,732 463,275 Capital Outlays 233,169 232,952 217 87,481
TOTAL EXPENDITURES 1,851,335 1,741,504 109,831 1,424,182
Revenues Under Expenditures (204,242) (190,950) 13,292 182,756
OTHER FINANCING SOURCES Transfers In 88,782 88,782 -- -- Proceeds from Sale of Assets 4,714 42,553 37,839 6,025 Appropriation from Fund Balance 110,746 -- (110,746) --
TOTAL OTHER FINANCING SOURCES 204,242 131,335 (72,907) 6,025
Revenues and Other Sources Over (Under) Expenditures $ -- (59,615) (59,615) 188,781
ADJUSTMENT TO ACCRUAL BASIS Add (Deduct) Capital Outlays 211,255 80,826 Depreciation Expense (112,273) (98,071) Increase in Compensated Absences Liability (10,387) (6,805) Unfunded Other Post-Employment Expense (79,618) (85,023) Pension Expense Adjustment (2,334) (13,437)
Total Accrual Adjustment 6,643 (122,510)
CHANGE IN NET POSITION (52,972) 66,271
NET POSITION - Beginning of Year 1,652,238 1,585,967 Change in Accounting Principle (1,231,405) -- NET POSITION - Beginning of Year, Restated 420,833 1,585,967
NET POSITION - End of Year $367,861 1,652,238
FLEET MANAGEMENT INTERNAL SERVICE FUND – SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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HEALTH INSURANCE INTERNAL SERVICE FUND – SCHEDULE OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA HEALTH INSURANCE INTERNAL SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) For the Year Ended June 30, 2018 With Comparative Totals For the Year Ended June 30, 2017
Schedule 19 2018 2017
Variance Positive
Budget Actual (Negative) Actual REVENUES
Health Insurance Premiums - Employees $13,969,187 14,356,363 387,176 13,660,120 Spouse and Dependents 3,618,180 3,723,559 105,379 3,489,797 Retirees 1,204,574 1,231,124 26,550 1,100,216 Cobra -- 28,140 28,140 38,875 Total Health Premiums 18,791,941 19,339,186 547,245 18,289,008
Dental Insurance Premiums - Employees 783,546 507,056 (276,490) 529,590 Spouse and Dependents 756,563 731,604 (24,959) 716,920 Retirees 138,237 98,217 (40,020) 112,926 Cobra -- 2,360 2,360 4,581 Total Dental Premiums 1,678,346 1,339,237 (339,109) 1,364,017
Miscellaneous Revenue -- 26,588 26,588 (26,588)
TOTAL REVENUES 20,470,287 20,705,011 234,724 19,626,437
EXPENDITURES
Health Expenditures Employees and Families Claims 14,775,767 11,853,797 2,921,970 12,355,270 Retiree Claims 2,209,531 1,618,078 591,453 2,118,608 Retirees Medicare Premiums Paid 319,782 278,857 40,925 219,163 Total Health Expenditures 17,305,080 13,750,732 3,554,348 14,693,041
Dental Expenditures Employees and Families Claims 1,424,754 1,380,901 43,853 1,343,700 Retiree Claims 141,213 119,964 21,249 131,030 Total Dental Expenditures 1,565,967 1,500,865 65,102 1,474,730
Flexible Spending Benefit Paid by Town 494,800 363,929 130,871 361,514 Administration 1,912,822 1,923,739 (10,917) 1,881,304 Contracted Services 129,200 111,400 17,800 188,204 Reimbursements from Operating Funds for Certain Administrative Expenses (937,582) (937,582) -- (813,000)
TOTAL EXPENDITURES, net 20,470,287 16,713,083 3,757,204 17,785,793
Revenues Over (Under) Expenditures -- 3,991,928 3,991,928 1,840,644
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HEALTH INSURANCE INTERNAL SERVICE FUND – SCHEDULE OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED JUNE 30, 2017
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TOWN OF CARY, NORTH CAROLINA HEALTH INSURANCE INTERNAL SERVICE FUND SCHEDULE OF REVENUES AND EXPENDITURES, AND CHANGES IN FUND NET POSITION BUDGET AND ACTUAL (NON-GAAP) For the Year Ended June 30, 2018 With Comparative Totals For the Year Ended June 30, 2017
Schedule 19 2018 2017
Variance Positive
Budget Actual (Negative) Actual OTHER FINANCING SOURCE (USE) Transfers In from General Fund $1,342,378 1,342,378 -- 1,000,000
Appropriation to Fund Balance (1,342,378) -- 1,342,378 -- TOTAL OTHER FINANCING SOURCE -- 1,342,378 1,342,378 1,000,000
Excess of Revenues and Other Sources Over (Under) Expenditures $ -- 5,334,306 5,334,306 2,840,644
ADJUSTMENT TO ACCRUAL BASIS Deduct
Increase in Accounts Receivable 31,823 -- Decrease in Claims Incurred But Not Reported 806,509 8,015
Total Accrual Adjustment 838,332 8,015
CHANGE IN NET POSITION 6,172,638 2,848,659
NET POSITION - Beginning of Year 7,478,972 4,630,313
NET POSITION - End of Year $13,651,610 7,478,972
OTHER FUND SCHEDULES
COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND Budgetary Comparison Schedule – Multi-year – Detail of multi-year projects and the associated revenue and expenditure budget
to actual comparisons. These projects are funded by an annual Community Development Block Grant, which is awarded by the
Department of Housing and Urban Development.
ECONOMIC DEVELOPMENT FUND
Budgetary Comparison Schedule – Multi-year – Detail of multi-year projects and the associated revenue and expenditure
budget to actual comparisons. This fund is subsidized by the General Fund along with state and/or federal grants for some of the
qualifying individual projects.
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COMMUNITY DEVELOPMENT BLOCK GRANT – SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE - MULTI-YEAR TOWN OF CARY, NORTH CAROLINA
FROM INCEPTION TO JUNE 30, 2018
TOWN OF CARY, NORTH CAROLINA COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE - MULTI-YEAR From Inception to June 30, 2018
Schedule 20
Total Budget Authorization
Prior Years Actual
Current Year Actual
Actuals To Date
Variance Positive
(Negative)
REVENUES
Community Development Block Grant - 2013 Authorization $ 208,504 208,504 -- 208,504 -- 2014 Authorization 55,332 40,717 -- 40,717 (14,615) 2015 Authorization 284,687 2,187 282,500 284,687 -- 2016 Authorization 558,706 66,817 315,621 382,438 (176,268) 2017 Authorization 598,032 -- 277,950 277,950 (320,082)
Community Development Block Grant 1,705,261 318,225 876,071 1,194,296 (510,965)
Program Income 1,589,662 1,416,067 42,358 1,458,425 (131,237) Interest Earnings 207 287 110 397 190
TOTAL REVENUE 3,295,130 1,734,579 918,539 2,653,118 (642,012)
Less: Completed Projects (268,797) (259,395) -- (259,395) 9,402
Total Revenue, net 3,026,333 1,475,184 918,539 2,393,723 (632,610)
EXPENDITURES
Program Administration - CD1014 6,399 6,399 -- 6,399 -- Program Administration - CD1016 6,267 5,000 25 5,025 1,242 Program Administration - CD1017 7,067 -- -- -- 7,067
Total Program Administration 19,733 11,399 25 11,424 8,309
Habitat for Humanity - CD0315 107,500 -- 107,500 107,500 -- Habitat for Humanity - CD0316 175,000 -- 175,000 175,000 -- Habitat for Humanity - CD0317 135,000 -- 105,000 105,000 30,000 Housing Rehabilitation - CD0517 232,150 -- 79,433 79,433 152,717 Resource for Seniors* - CD1914 64,490 64,490 -- 64,490 -- Resource for Seniors - CD1916 35,174 22,609 7,350 29,959 5,215 Resources for Seniors - CD1917 30,000 -- -- -- 30,000 Dorcas Ministries - CD2016 175,000 -- -- -- 175,000 Dorcas Ministries - CD3617 30,000 -- -- -- 30,000 The Carying Place* - CD2213 174,307 164,905 -- 164,905 9,402
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COMMUNITY DEVELOPMENT BLOCK GRANT – SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE - MULTI-YEAR TOWN OF CARY, NORTH CAROLINA
FROM INCEPTION TO JUNE 30, 2018
TOWN OF CARY, NORTH CAROLINA COMMUNITY DEVELOPMENT BLOCK GRANT SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE - MULTI-YEAR From Inception to June 30, 2018
Schedule 20
Total Budget Authorization
Prior Years Actual
Current Year Actual
Actuals To Date
Variance Positive
(Negative) White Oak Foundation- Public Services* - CD2516 $ 30,000 30,000 -- 30,000 -- White Oak Foundation-Public Services - CD2517 28,467 -- 26,400 26,400 2,067 White Oak Foundation - CD3315 175,000 -- 175,000 175,000 -- White Oak Foundation-Community Ctr - CD3316 100,000 -- 100,000 100,000 -- Mayton Inn HUD 108 Loan - CD3013 1,407,500 1,407,500 -- 1,407,500 -- HUD 108 Loan Payment - CD3116 14,509 8,816 -- 8,816 5,693 HUD 108 Loan Payment - CD3117 159,593 -- 89,511 89,511 70,082 Tammy Lynn Facility - CD3217 90,000 -- 90,000 90,000 -- Rebuilding Together - CD3416 30,000 23,620 6,380 30,000 -- Rebuilding Together - CD3417 30,000 -- 30,000 30,000 -- Transitions LifeCare - CD3516 25,000 -- 25,000 25,000 -- Transitions LifeCare - CD3517 20,000 -- 20,000 20,000 -- Reserve 6,707 -- -- -- 6,707
TOTAL EXPENDITURES 3,295,130 1,733,339 1,036,599 2,769,938 525,192
Less: Completed Projects (noted by *) (268,797) (259,395) -- (259,395) (9,402)
PROJECTS IN PROGRESS 3,026,333 1,473,944 1,036,599 2,510,543 515,790
Revenue Over (Under) Expenditures -- 1,240 (118,060) (116,820) (116,820)
FUND BALANCE $ -- 1,240 (118,060) (116,820) (116,820)
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ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND – BUDGETARY COMPARISON SCHEDULE - MULTI-YEAR TOWN OF CARY, NORTH CAROLINA
FROM INCEPTION TO JUNE 30, 2018
TOWN OF CARY, NORTH CAROLINA ECONOMIC DEVELOPMENT SPECIAL REVENUE FUND BUDGETARY COMPARISON SCHEDULE - MULTI-YEAR From Inception to June 30, 2018
Schedule 21
Total Budget Authorization
Prior Years Actual
Current Year Actual
Actuals To Date
Variance Positive
(Negative)
RESTRICTED INTERGOVERNMENTAL REVENUES Department of Commerce Grant $ 273,700 48,000 21,000 69,000 (204,700)
EXPENDITURES Economic Development Administration - ED1000 1,068,000 564,000 349,300 913,300 154,700
Specific Development Projects - HCL America - ED1001 247,400 96,000 42,000 138,000 109,400 Met Life - ED1002 1,026,522 601,522 357,187 958,709 67,813 CBC Americas - ED1003 23,500 -- -- -- 23,500 Proto Labs - ED1004 300,000 -- -- -- 300,000 Kellogg - ED1005 216,450 216,450 -- 216,450 -- Trilliant - ED1007 19,000 -- 9,500 9,500 9,500
TOTAL EXPENDITURES 2,900,872 1,477,972 757,987 2,235,959 664,913
Revenue Over (Under) Expenditures (2,627,172) (1,429,972) (736,987) (2,166,959) 460,213
OTHER FINANCING SOURCES Transfers In from General Fund 2,627,172 1,783,172 844,000 2,627,172 --
FUND BALANCE $ -- 353,200 107,013 460,213 460,213
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STATISTICAL SECTION
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STATISTICAL SECTION This part of the Town of Cary’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial information, note disclosures, and required supplementary information says about the government’s overall financial health.
Financial Trends – These tables contain trend information to help the reader understand how the government’s financial performance and well-being have changed over time.
Revenue Capacity – These tables contain information to help the reader assess the government’s most significant local revenue source, the property tax.
Debt Capacity – These tables present information to help the reader assess the affordability of the government’s current levels of outstanding debt and the government’s ability to issue additional debt in the future.
Demographic and Economic – These tables offer demographic and economic indicators to help the reader understand the environment within which the government’s financial activities take place.
Operating Information – These tables contain service and infrastructure data to help the reader understand how the information in the government’s financial report relates to the services the government provides and the activities it performs.
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FINANCIAL TRENDS INFORMATION
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NET POSITION BY COMPONENT (1)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA NET POSITION BY COMPONENT (1)
Last Ten Fiscal Years
Table 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Governmental Activities
Net Investment in Capital Assets $663.7 611.1 661.7 664.7 697.4 714.6 735.8 734.4 785.3 839.0 Restricted 38.9 36.6 28.7 30.3 33.7 55.3 59.6 36.4 30.6 34.4 Unrestricted 49.3 84.7 60.0 70.8 52.4 37.8 37.3 92.4 69.3 (4.4) Total Governmental Activities Net Position 751.9 732.4 750.4 765.8 783.5 807.7 832.7 863.2 885.2 869.0
Business-type Activities Net Investment in Capital Assets 320.8 343.3 372.3 416.1 377.4 441.7 469.9 491.8 503.8 524.4 Restricted -- -- -- -- 22.8 17.9 91.2 -- -- 0.1 Unrestricted 173.1 188.7 191.0 182.9 231.1 201.8 188.3 230.7 252.5 246.3 Total Business-type Activities Net Position 493.9 532.0 563.3 599.0 631.3 661.4 749.4 722.5 756.3 770.8
Primary Government Net Investment in Capital Assets 984.5 954.4 1,034.0 1,080.8 1,074.8 1,156.3 1,205.7 1,226.2 1,289.1 1,363.4 Restricted 38.9 36.6 28.7 30.3 56.5 73.2 150.8 36.4 30.6 34.5 Unrestricted 222.4 273.4 251.0 253.7 283.5 239.6 225.6 323.1 321.8 241.9 Total Primary Government Net Position $1,245.8 1,264.4 1,313.7 1,364.8 1,414.8 1,469.1 1,582.1 1,585.7 1,641.5 1,639.8
------------- NOTES: (1) This table was prepared using the accrual basis of accounting and is displayed in millions. (2) Restricted totals for Governmental Activities have been restated in years prior to fiscal year 2011 to include Restriction for Stabilization by Statute.
-$100 $0
$100 $200 $300 $400 $500 $600 $700 $800 $900
$1,000
Mi lli
on s
Net Position by Component
Unrestricted
Restricted
Net Investment in Capital Assets
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TOWN OF CARY, NORTH CAROLINA NET POSITION BY COMPONENT (1)
Last Ten Fiscal Years
Table 1
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Governmental Activities
Net Investment in Capital Assets $663.7 611.1 661.7 664.7 697.4 714.6 735.8 734.4 785.3 839.0 Restricted 38.9 36.6 28.7 30.3 33.7 55.3 59.6 36.4 30.6 34.4 Unrestricted 49.3 84.7 60.0 70.8 52.4 37.8 37.3 92.4 69.3 (4.4) Total Governmental Activities Net Position 751.9 732.4 750.4 765.8 783.5 807.7 832.7 863.2 885.2 869.0
Business-type Activities Net Investment in Capital Assets 320.8 343.3 372.3 416.1 377.4 441.7 469.9 491.8 503.8 524.4 Restricted -- -- -- -- 22.8 17.9 91.2 -- -- 0.1 Unrestricted 173.1 188.7 191.0 182.9 231.1 201.8 188.3 230.7 252.5 246.3 Total Business-type Activities Net Position 493.9 532.0 563.3 599.0 631.3 661.4 749.4 722.5 756.3 770.8
Primary Government Net Investment in Capital Assets 984.5 954.4 1,034.0 1,080.8 1,074.8 1,156.3 1,205.7 1,226.2 1,289.1 1,363.4 Restricted 38.9 36.6 28.7 30.3 56.5 73.2 150.8 36.4 30.6 34.5 Unrestricted 222.4 273.4 251.0 253.7 283.5 239.6 225.6 323.1 321.8 241.9 Total Primary Government Net Position $1,245.8 1,264.4 1,313.7 1,364.8 1,414.8 1,469.1 1,582.1 1,585.7 1,641.5 1,639.8
------------- NOTES: (1) This table was prepared using the accrual basis of accounting and is displayed in millions. (2) Restricted totals for Governmental Activities have been restated in years prior to fiscal year 2011 to include Restriction for Stabilization by Statute.
-$100 $0
$100 $200 $300 $400 $500 $600 $700 $800 $900
$1,000
Mi lli
on s
Net Position by Component
Unrestricted
Restricted
Net Investment in Capital Assets
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Table 2
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Expenses
Governmental Activities: General Government $63,448,686 84,267,257 54,549,869 59,448,999 59,607,266 18,826,506 19,153,478 20,833,719 21,736,606 28,956,230 Public Safety 37,689,195 39,121,280 41,397,584 42,960,590 45,480,515 45,546,267 46,280,026 49,039,555 52,004,616 51,561,522 Public Works 25,279,822 25,168,640 25,845,778 26,631,970 28,121,047 29,210,079 27,910,623 29,815,695 32,806,255 31,996,047 Parks, Recreation and Culture 13,463,176 14,088,173 14,347,312 15,540,731 15,583,423 17,213,506 18,169,806 19,549,293 20,540,759 20,836,664
Development (2) -- -- -- -- -- 7,406,335 8,418,518 7,500,918 8,692,837 11,430,564 Infrastructure (2) -- -- -- -- -- 32,106,589 37,033,027 41,756,708 41,632,137 53,800,825
Interest Expense 3,894,776 4,380,753 3,716,091 3,172,167 2,800,458 2,531,856 3,923,208 3,410,347 3,146,884 3,914,795 Debt service - Other 132,606 252,769 518,229 599,803 497,751 -- -- -- -- --
Total Governmental Activities Expense 143,908,261 167,278,872 140,374,863 148,354,260 152,090,460 152,841,138 160,888,686 171,906,235 180,560,094 202,496,647
Total Business-type Activity - Utility Systems 44,832,396 49,871,584 52,263,448 53,815,758 55,196,322 63,160,023 63,938,566 62,436,941 69,415,893 74,346,492
TOTAL PRIMARY GOVERNMENT EXPENSES 188,740,657 217,150,456 192,638,311 202,170,018 207,286,782 216,001,161 224,827,252 234,343,176 249,975,987 276,843,139
Program Revenues Governmental Activities:
Charges for Services General Governmental 9,214,685 7,285,717 7,236,787 8,777,662 10,907,839 1,461,503 1,336,807 1,837,556 1,591,229 1,381,774 Public Safety 370,818 282,948 224,324 265,116 307,200 286,424 378,204 336,926 506,885 450,928 Public Works 7,023,543 7,280,299 7,574,691 8,121,253 8,112,252 8,926,987 8,836,566 9,837,676 10,516,875 10,204,188 Parks, Recreation and Culture 4,705,826 5,078,122 5,310,494 6,715,990 6,719,930 8,733,411 9,429,792 11,747,875 11,567,217 12,249,099 Development (2) -- -- -- -- -- 4,958,274 3,747,472 4,577,949 5,131,461 5,275,593 Infrastructure (2) -- -- -- -- -- 5,087,765 4,081,071 4,287,823 4,450,810 5,765,749 Operating Grants and Contributions General Governmental 6,351,978 6,181,412 5,570,607 6,084,145 5,646,238 1,324,904 15,000 15,000 1,597,672 113,982 Public Safety 287,257 1,093,817 345,903 866,141 380,882 1,171,265 1,242,202 1,077,893 905,047 1,547,030 Public Works 39,912 118,072 111,186 105,021 88,128 96,640 106,253 110,422 113,842 118,407 Parks, Recreation and Culture 40,004 26,944 87,165 101,413 101,262 94,594 89,966 474,644 510,240 754,136 Development (2) -- -- -- -- -- 263,124 725,629 281,355 335,855 1,079,250 Infrastructure (2) -- -- -- -- -- 2,757,353 2,718,991 2,934,744 3,131,082 3,356,586 Capital Grants and Contributions General Governmental 35,264,292 13,562,752 22,579,255 22,920,204 28,128,404 421,160 430,542 (235) 3,652,891 (5,756) Public Safety -- 179,268 -- -- 106,320 7,988 -- -- -- -- Cultural and Recreational 2,029,625 1,514,817 2,645,396 2,363,029 1,134,869 1,589,724 3,401,058 1,789,715 3,254,884 7,853,804 Infrastructure (2) -- -- -- -- -- 21,833,148 34,201,284 27,259,686 27,217,844 50,505,616
Total Governmental Activities Program Revenues 65,327,940 42,604,168 51,685,808 56,319,974 61,633,324 59,014,264 70,740,837 66,569,029 74,483,834 100,650,386
Business-type Activity (Utility System): Charges for Services 57,906,360 62,727,352 67,572,235 73,992,389 75,156,199 78,870,326 79,084,816 82,930,977 90,671,401 93,554,711 Capital Grants and Contributions 21,858,752 23,207,834 14,822,501 15,453,704 13,935,475 12,967,026 13,003,281 9,505,943 11,945,486 8,814,674
Total Business-type Activity Program Revenues 79,765,112 85,935,186 82,394,736 89,446,093 89,091,674 91,837,352 92,088,097 92,436,920 102,616,887 102,369,385
TOTAL PRIMARY GOVERNMENT PROGRAM REVENUES 145,093,052 128,539,354 134,080,544 145,766,067 150,724,998 150,851,616 162,828,934 159,005,949 177,100,721 203,019,771
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Table 2
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net Revenue (Expense)
Governmental Activities ($78,580,321) (124,674,704) (88,689,055) (92,034,286) (90,457,136) (93,826,874) (90,147,849) (105,337,206) (106,076,260) (101,846,261) Business-type Activity 34,932,716 36,063,602 30,131,288 35,630,335 33,895,352 28,677,329 28,149,531 29,999,979 33,200,994 28,022,893
TOTAL PRIMARY GOVERNMENT NET REVENUE (EXPENSE) (43,647,605) (88,611,102) (58,557,767) (56,403,951) (56,561,784) (65,149,545) (61,998,318) (75,337,227) (72,875,266) (73,823,368)
General Revenues and Other Changes in Net Position Governmental Activities:
Ad Valorem Taxes 64,920,931 66,654,176 67,246,736 70,248,805 71,168,182 78,879,037 79,820,733 87,222,479 89,995,124 92,315,794 Sales Tax 22,557,180 21,899,210 23,696,949 22,735,105 24,008,964 25,894,844 28,211,446 30,522,315 32,234,818 33,772,686 Occupancy Tax 655,705 627,776 724,825 786,849 838,514 931,852 1,035,772 1,130,099 1,198,422 1,267,356 ABC Revenue 467,988 428,338 468,934 521,915 634,453 655,502 758,564 854,257 909,067 969,988 Privilege License Revenue 1,794,199 1,631,132 1,596,040 1,623,016 1,671,965 1,665,233 1,534,910 -- -- -- Other Taxes 89,743 86,377 93,229 92,506 93,464 100,529 109,979 112,277 145,850 837,004 Unrestricted Intergovernmental 8,163,827 8,673,920 8,686,913 7,985,481 8,110,761 8,418,689 11,140,351 11,303,283 11,239,928 11,366,443 Investment Earnings, net of market adjustment 6,756,498 3,113,436 2,077,748 920,498 432,367 1,263,991 1,363,057 2,674,110 635,198 1,217,658 Gain (Loss) on Sale of Capital Assets 113,353 (199,969) 98,914 279,421 85,447 43,412 95,399 505,465 229,437 239,691 General Donations -- -- 10,000 -- -- -- -- -- -- -- Miscellaneous Revenue 1,285,311 1,358,896 1,017,459 1,320,513 1,195,389 162,417 78,097 44,082 47,201 104,977 Transfers In, net 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 -- -- -- -- -- Total Governmental Activities 107,804,735 105,273,292 106,717,747 107,514,109 109,239,506 118,015,506 124,148,308 134,368,367 136,635,045 142,091,597
Business-type Activity: Investment Earnings, net of market adjustment 6,536,161 3,063,452 2,124,874 915,137 508,292 1,385,781 1,454,440 2,726,503 517,213 1,387,496 Gain on Sale of Capital Assets -- -- -- -- 2,075 -- -- -- -- -- Miscellaneous Revenue 93,164 35,311 88,292 28,253 60,931 53,495 724,934 -- 7,948 224,770 Transfers In, net (1,000,000) (1,000,000) (1,000,000) (1,000,000) (1,000,000) -- -- -- -- -- Total Business-type Activity 5,629,325 2,098,763 1,213,166 (56,610) (428,702) 1,439,276 2,179,374 2,726,503 525,161 1,612,266
TOTAL PRIMARY GOVERNMENT GENERAL REVENUES AND OTHER CHANGES IN NET POSITION 113,434,060 107,372,055 107,930,913 107,457,499 108,810,804 119,454,782 126,327,682 137,094,870 137,160,206 143,703,863
Change in Net Position
Governmental Activities 29,224,414 (19,401,412) 18,028,692 15,479,823 18,782,370 24,188,632 34,000,459 29,031,161 30,558,785 40,245,336
Business type Activity 40,562,041 38,162,365 31,344,454 35,573,725 33,466,650 30,116,605 30,328,905 32,726,482 33,726,155 29,635,159
TOTAL PRIMARY GOVERNMENT CHANGE IN NET POSITION $69,786,455 18,760,953 49,373,146 51,053,548 52,249,020 54,305,237 64,329,364 61,757,643 64,284,940 69,880,495
------------- NOTES:
(1) This table was prepared using the accrual basis of accounting. (2) A departmental reorganization occurred in FY2014. (3) Does not include prior period adjustments.
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Table 3
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 GENERAL FUND Nonspendable $1,445,054 1,587,289 1,617,583 1,685,338 1,848,550 2,353,177 2,148,248 2,589,095 2,488,768 2,136,410 Restricted 14,421,985 13,836,855 14,379,250 16,221,935 19,270,196 17,571,257 17,479,883 18,921,593 18,215,234 20,228,830 Committed -- -- 275,597 42,307 67,704 83,826 91,329 1,727,093 1,936,389 2,630,104 Assigned 3,574,592 4,808,872 13,236,403 10,023,775 15,224,953 11,362,363 11,786,098 20,564,421 24,599,187 13,825,737 Unassigned 55,779,809 65,350,831 66,217,880 61,258,026 56,263,915 63,977,908 64,510,499 58,942,846 54,111,060 49,606,737 Total General Fund 75,221,440 85,583,847 95,726,713 89,231,381 92,675,318 95,348,531 96,016,057 102,745,048 101,350,638 88,427,818
ALL OTHER GOVERNMENTAL FUNDS
Capital Project Restricted 20,194,279 16,657,726 14,061,554 13,758,939 14,151,503 36,782,100 41,066,144 16,506,067 12,543,644 30,829,109 Committed 100,326,684 94,233,427 85,024,390 79,048,246 74,044,594 87,730,782 87,104,640 104,866,598 112,969,890 127,442,664 Special Revenue Restricted 720,683 686,059 210,767 117,102 3,120 674,456 830,320 554,965 199,051 1,250,029 Committed 690,391 955,992 817,092 426,216 750,816 1,018,761 1,761,957 2,553,576 1,107,628 785,259 Unassigned -- -- -- -- -- -- -- (1,200,435) -- (116,820)
Total All Other Governmental Funds $121,932,037 112,533,204 100,113,803 93,350,503 88,950,033 126,206,099 130,763,061 123,280,771 126,820,213 160,190,241
------------- NOTES:
(1) This table was prepared using the modified accrual basis of accounting.
$0
$20,000,000
$40,000,000
$60,000,000
$80,000,000
$100,000,000
$120,000,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
General Fund - Fund Balance by Fiscal Year
Nonspendable Restricted Assigned Committed Unassigned Fiscal Year
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Table 4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 REVENUES
Ad Valorem Taxes $64,851,809 66,648,963 67,349,568 70,312,078 71,097,974 78,687,433 79,900,162 87,300,410 89,973,487 92,316,526 Other Taxes and Licenses 25,998,847 25,106,865 27,014,009 26,168,697 27,671,141 30,572,864 32,517,592 33,142,090 35,004,780 37,540,111 Unrestricted Intergovernmental 8,163,827 8,673,920 8,686,913 7,985,481 8,110,761 8,418,689 11,140,351 11,303,283 11,239,928 11,366,443 Restricted Intergovernmental 9,130,356 9,071,824 8,724,674 8,296,025 8,849,872 9,023,082 8,850,316 8,447,748 11,584,259 15,747,777 Permits and Fees 7,153,411 5,581,224 5,521,347 7,305,932 9,218,784 11,953,112 11,288,290 14,253,928 14,497,021 16,407,020 Sales and Services 11,234,157 11,714,146 11,859,207 13,211,223 13,260,981 15,837,834 16,238,536 17,603,449 18,256,142 19,234,855 Investment Earnings, net of market adjustment 6,616,841 2,808,943 1,625,479 912,452 426,203 1,257,048 1,356,546 2,611,866 574,475 1,328,512 Reimbursements -- -- -- -- -- 247,970 350,966 -- 3,647,100 -- Miscellaneous 3,219,407 3,021,004 3,165,034 4,409,515 3,390,173 1,779,020 1,589,846 2,624,845 4,144,788 2,174,577 TOTAL REVENUES 136,368,655 132,626,889 133,946,231 138,601,403 142,025,889 157,777,052 163,232,605 177,287,619 188,921,980 196,115,821
EXPENDITURES Current:
General Government 31,483,603 29,542,906 29,011,517 30,391,880 29,653,364 28,466,539 22,547,564 24,983,488 26,785,122 36,086,431 Public Safety 34,014,789 35,744,914 37,142,140 39,814,392 40,551,948 43,657,794 46,483,094 48,815,112 48,991,357 48,954,822 Public Works 23,085,326 22,812,651 23,831,652 25,248,442 25,833,602 26,889,770 26,695,624 26,977,758 29,721,025 30,589,874 Parks, Recreation and Culture 10,582,886 10,954,118 11,859,573 12,286,767 12,831,839 17,936,667 21,078,002 28,201,161 26,648,242 29,123,094 Development (2) -- -- -- -- -- 6,905,274 8,335,750 9,080,598 8,636,900 9,553,009 Infrastructure (2) -- -- -- -- -- 15,707,351 20,147,407 29,566,219 32,672,644 38,799,090
Debt service: Principal 8,296,355 7,969,735 7,575,082 9,807,673 9,570,193 13,298,770 10,417,753 10,555,953 11,175,613 12,423,432 Interest 3,988,326 4,400,383 3,784,667 3,680,121 3,268,400 2,803,642 3,978,512 3,612,236 3,312,564 3,889,883 Bond Service Charges 335,293 342,527 370,211 322,207 244,535 464,899 227,895 283,401 184,862 470,809
Reimbursement for Open Space -- -- -- -- -- (946,012) (918,229) (890,446) (862,663) (822,264) Capital Projects (3) 41,997,076 21,622,624 24,884,877 32,950,758 22,813,538 -- -- -- -- -- TOTAL EXPENDITURES 153,783,654 133,389,858 138,459,719 154,502,240 144,767,419 155,184,694 158,993,372 181,185,480 187,265,666 209,068,180
REVENUES OVER (UNDER) EXPENDITURES (17,414,999) (762,969) (4,513,488) (15,900,837) (2,741,530) 2,592,358 4,239,233 (3,897,861) 1,656,314 (12,952,359)
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Table 4
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
OTHER FINANCING SOURCES (USES) Transfers In $33,598,505 6,026,091 4,914,703 18,344,736 9,345,645 23,397,447 15,171,967 20,495,545 22,136,656 27,122,835 Transfers Out (32,598,505) (5,026,091) (3,914,703) (17,344,736) (8,345,645) (23,397,447) (15,171,967) (20,495,545) (23,136,656) (28,553,995) Sale of Assets 207,172 741,886 202,620 357,594 148,139 180,536 219,439 591,684 309,959 296,798 Capital Lease Obligations Issued 2,129,500 737,828 958,419 1,261,901 636,858 1,157,013 765,816 1,039,101 1,178,759 850,457 Installment Purchase Contracts 1,315,000 -- -- -- -- -- -- -- -- -- General Obligation Bonds Issued 43,871,785 16,131,395 14,670,000 9,189,679 (2,090,321) 32,915,000 -- 13,702,041 -- 48,077,667 Premium Received on General Obligation Bonds -- 395,765 2,090,321 2,090,321 2,090,321 3,084,372 -- -- -- 2,555,299 Payment to Escrow for Advanced Defeasance of Debt (13,797,515) (16,278,744) (16,582,347) (11,206,974) -- -- -- (13,659,660) -- (16,949,494) Miscellaneous -- -- (102,060) (50,316) -- -- -- -- -- -- TOTAL OTHER FINANCING SOURCES, net 34,725,942 2,728,130 2,236,953 2,642,205 1,784,997 37,336,921 985,255 1,673,166 488,718 33,399,567
NET CHANGE IN FUND BALANCE $17,310,943 1,965,161 (2,276,535) (13,258,632) (956,533) 39,929,279 5,224,488 (2,224,695) 2,145,032 20,447,208
Debt Service as a percentage of non-capital expenditures 9.6% 10.4% 9.5% 10.2% 9.7% 11.8% 9.8% 9.2% 9.1% 9.0%
------------- NOTES: (1) This table was prepared using the modified accrual basis of accounting. (2) A departmental reorganization occurred during FY2014. (3) Beginning in FY2014, capital project expenditures are included in the functional areas.
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Table 5
Fiscal Year
General Government
(1) (11) Public Safety
(2) (11) Public Works
(3)
Parks, Recreation and
Culture (4) (11)
Development (5)
Infrastructure (6) (11)
Debt Service (7)
Capital Projects
(8) Fiscal Year
Total Per Capita
Expenditures 2018 $26,007,228 47,823,245 30,589,874 16,829,819 9,553,009 13,079,570 15,961,860 49,223,575 209,068,180 1,275 2017 20,618,594 46,515,157 29,721,025 15,993,137 8,636,900 12,516,921 13,810,376 39,453,556 187,265,666 1,168 2016 17,950,841 45,610,735 26,977,758 14,332,313 9,080,598 11,025,587 13,561,144 42,646,504 181,185,480 1,152 2015 16,848,734 44,094,581 26,695,624 14,612,652 8,335,750 10,686,628 13,705,931 24,013,472 158,993,372 1,033 2014 16,635,615 41,680,461 26,889,770 13,795,424 6,905,274 7,835,464 15,621,299 25,875,375 155,238,682 1,036 2013 29,653,364 40,551,948 25,833,602 12,831,839 -- -- 13,083,128 22,813,538 144,767,419 999 2012 30,391,880 39,814,392 25,248,442 12,286,767 -- -- 13,810,001 32,950,758 154,502,240 1,086 2011 29,011,517 37,142,140 23,831,652 11,859,573 -- -- 11,729,960 24,884,877 138,459,719 993 2010 29,542,906 35,744,914 22,812,651 10,954,118 -- -- 12,712,645 21,622,624 133,389,858 986 2009 31,483,603 34,014,789 23,085,326 10,582,886 -- -- 12,619,974 41,997,076 153,783,654 1,172
------------- NOTES:
(1) Includes Legislative, Town Clerk, Legal, Administrative, Budget, Public Information,
Technology Services, Accounting, Purchasing, Human Resources, Emergency Telephone System, Economic Development and Self-Insurance.
(2) Includes Police and Fire.
(3) Includes Public Works Administration, Facilities Management, Field Operations,
Disaster Management, Solid Waste, Recycling and Yard Waste.
(4) Includes Parks, Recreation and Cultural Resources Administration, Recreational
Programs, Athletics, Cultural Arts, Amphitheatre operations, Skate Park, Tennis Park, Soccer Park, USA Baseball National Training Complex at Thomas Brooks Park, and the Cary Arts Center.
(5) Includes Planning, Affordable Housing, Inspection & Permits and Development Support.
(6) Includes Transportation & Facilities and Water Resources - Infrastructure.
(7) Includes all principal, interest, and service charges paid through the General Fund for
bonded debt and installment purchases, net of reimbursements from other funds.
(8) Includes project expenditures from all of the Capital Project Fund sub-funds (street,
downtown, parks, fire and general governmental projects).
(9) This table was prepared using the modified accrual basis of accounting.
(10) A departmental reorganization occurred during FY2014.
(11) Capital project expenditures are not included and presented in a separate column.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EX PE
ND ITU
RE S
FISCAL YEAR
GENERAL GOVERNMENTAL EXPENDITURES - PER CAPITA
Operations Capital Projects Debt Service
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Last Ten Fiscal Years
Table 5
Fiscal Year
General Government
(1) (11) Public Safety
(2) (11) Public Works
(3)
Parks, Recreation and
Culture (4) (11)
Development (5)
Infrastructure (6) (11)
Debt Service (7)
Capital Projects
(8) Fiscal Year
Total Per Capita
Expenditures 2018 $26,007,228 47,823,245 30,589,874 16,829,819 9,553,009 13,079,570 15,961,860 49,223,575 209,068,180 1,275 2017 20,618,594 46,515,157 29,721,025 15,993,137 8,636,900 12,516,921 13,810,376 39,453,556 187,265,666 1,168 2016 17,950,841 45,610,735 26,977,758 14,332,313 9,080,598 11,025,587 13,561,144 42,646,504 181,185,480 1,152 2015 16,848,734 44,094,581 26,695,624 14,612,652 8,335,750 10,686,628 13,705,931 24,013,472 158,993,372 1,033 2014 16,635,615 41,680,461 26,889,770 13,795,424 6,905,274 7,835,464 15,621,299 25,875,375 155,238,682 1,036 2013 29,653,364 40,551,948 25,833,602 12,831,839 -- -- 13,083,128 22,813,538 144,767,419 999 2012 30,391,880 39,814,392 25,248,442 12,286,767 -- -- 13,810,001 32,950,758 154,502,240 1,086 2011 29,011,517 37,142,140 23,831,652 11,859,573 -- -- 11,729,960 24,884,877 138,459,719 993 2010 29,542,906 35,744,914 22,812,651 10,954,118 -- -- 12,712,645 21,622,624 133,389,858 986 2009 31,483,603 34,014,789 23,085,326 10,582,886 -- -- 12,619,974 41,997,076 153,783,654 1,172
------------- NOTES:
(1) Includes Legislative, Town Clerk, Legal, Administrative, Budget, Public Information,
Technology Services, Accounting, Purchasing, Human Resources, Emergency Telephone System, Economic Development and Self-Insurance.
(2) Includes Police and Fire.
(3) Includes Public Works Administration, Facilities Management, Field Operations,
Disaster Management, Solid Waste, Recycling and Yard Waste.
(4) Includes Parks, Recreation and Cultural Resources Administration, Recreational
Programs, Athletics, Cultural Arts, Amphitheatre operations, Skate Park, Tennis Park, Soccer Park, USA Baseball National Training Complex at Thomas Brooks Park, and the Cary Arts Center.
(5) Includes Planning, Affordable Housing, Inspection & Permits and Development Support.
(6) Includes Transportation & Facilities and Water Resources - Infrastructure.
(7) Includes all principal, interest, and service charges paid through the General Fund for
bonded debt and installment purchases, net of reimbursements from other funds.
(8) Includes project expenditures from all of the Capital Project Fund sub-funds (street,
downtown, parks, fire and general governmental projects).
(9) This table was prepared using the modified accrual basis of accounting.
(10) A departmental reorganization occurred during FY2014.
(11) Capital project expenditures are not included and presented in a separate column.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EX PE
ND ITU
RE S
FISCAL YEAR
GENERAL GOVERNMENTAL EXPENDITURES - PER CAPITA
Operations Capital Projects Debt Service
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UTILITY SYSTEM ENTERPRISE FUND EXPENDITURES BY FUNCTION (1) (2)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA UTILITY SYSTEM ENTERPRISE FUND EXPENDITURES BY FUNCTION (1) (2)
Last Ten Fiscal Years
Table 6
Fiscal Year Administrative(2)
Field Operations
Utility Systems Management
Wastewater Treatment Facilities
Water Treatment Plant, net
Other Expenditures (not including transfers) (3) Debt Service (4)
Capital Projects
Fiscal Year Total
Per Customer Expenditures
2018 $9,291,134 10,265,790 4,188,553 9,832,307 7,370,226 796,893 25,242,674 31,819,551 98,807,128 1,592 2017 8,459,059 9,791,207 3,991,963 10,727,206 6,423,836 443,135 23,883,026 15,237,431 78,956,863 1,296 2016 8,319,942 9,264,631 3,444,121 10,024,070 6,240,410 43,999 23,897,931 30,741,357 91,976,461 1,540 2015 7,577,816 9,617,352 3,224,896 11,178,461 5,724,272 6,199 22,060,528 46,599,746 105,989,270 1,818 2014 8,926,053 8,127,485 2,858,198 11,448,438 5,738,271 317,056 17,341,937 58,450,005 113,207,443 1,992 2013 9,098,272 7,674,000 2,926,766 10,517,874 5,208,880 889,631 14,548,508 87,825,092 138,689,023 2,514 2012 9,686,337 7,862,124 2,888,965 10,288,209 4,998,096 51,648 13,224,249 59,108,441 108,108,069 2,033 2011 8,746,832 7,854,628 2,481,630 10,346,423 4,688,478 583,604 12,480,169 26,730,106 73,911,870 1,417 2010 8,175,698 7,146,792 2,471,057 9,510,146 4,795,636 135,515 12,686,261 12,374,227 57,295,332 1,137 2009 6,863,284 7,439,182 2,621,157 9,221,740 4,739,192 319,292 12,205,140 8,102,283 51,511,270 1,052
------------- NOTES:
(1) This table was prepared using the modified accrual basis of accounting. (2) Division includes administration, water conservation and pretreatment. Due to
departmental reorganization in FY2014, water resources was added to this total. (3) Does not include any payments to escrow related to the advanced defeasance of debt. (4) Includes debt service paid to Morrisville for their utility debt as part of the 2006 merger agreement.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EX PE
ND ITU
RE S
FISCAL YEAR
UTILITY EXPENDITURES - PER CUSTOMER
Operations Capital Projects Debt Service
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TOWN OF CARY, NORTH CAROLINA UTILITY SYSTEM ENTERPRISE FUND EXPENDITURES BY FUNCTION (1) (2)
Last Ten Fiscal Years
Table 6
Fiscal Year Administrative(2)
Field Operations
Utility Systems Management
Wastewater Treatment Facilities
Water Treatment Plant, net
Other Expenditures (not including transfers) (3) Debt Service (4)
Capital Projects
Fiscal Year Total
Per Customer Expenditures
2018 $9,291,134 10,265,790 4,188,553 9,832,307 7,370,226 796,893 25,242,674 31,819,551 98,807,128 1,592 2017 8,459,059 9,791,207 3,991,963 10,727,206 6,423,836 443,135 23,883,026 15,237,431 78,956,863 1,296 2016 8,319,942 9,264,631 3,444,121 10,024,070 6,240,410 43,999 23,897,931 30,741,357 91,976,461 1,540 2015 7,577,816 9,617,352 3,224,896 11,178,461 5,724,272 6,199 22,060,528 46,599,746 105,989,270 1,818 2014 8,926,053 8,127,485 2,858,198 11,448,438 5,738,271 317,056 17,341,937 58,450,005 113,207,443 1,992 2013 9,098,272 7,674,000 2,926,766 10,517,874 5,208,880 889,631 14,548,508 87,825,092 138,689,023 2,514 2012 9,686,337 7,862,124 2,888,965 10,288,209 4,998,096 51,648 13,224,249 59,108,441 108,108,069 2,033 2011 8,746,832 7,854,628 2,481,630 10,346,423 4,688,478 583,604 12,480,169 26,730,106 73,911,870 1,417 2010 8,175,698 7,146,792 2,471,057 9,510,146 4,795,636 135,515 12,686,261 12,374,227 57,295,332 1,137 2009 6,863,284 7,439,182 2,621,157 9,221,740 4,739,192 319,292 12,205,140 8,102,283 51,511,270 1,052
------------- NOTES:
(1) This table was prepared using the modified accrual basis of accounting. (2) Division includes administration, water conservation and pretreatment. Due to
departmental reorganization in FY2014, water resources was added to this total. (3) Does not include any payments to escrow related to the advanced defeasance of debt. (4) Includes debt service paid to Morrisville for their utility debt as part of the 2006 merger agreement.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
EX PE
ND ITU
RE S
FISCAL YEAR
UTILITY EXPENDITURES - PER CUSTOMER
Operations Capital Projects Debt Service
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GOVERNMENTAL FUND REVENUES BY SOURCE (7)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA GOVERNMENTAL FUND REVENUES BY SOURCE(7)
Last Ten Fiscal Years
Table 7 Reimbursements Fiscal
Fiscal Taxes & Permits Inter- Sales and Investment and Year Per Capita Year Licenses(1) and Fees(2) Governmental(3) Service(4) Earnings(5) Miscellaneous(6) Total Revenues 2018 $129,856,637 16,407,020 27,114,220 19,234,855 1,328,512 2,174,577 196,115,821 1,196 2017 124,978,267 14,497,021 22,824,187 18,257,806 572,811 7,791,888 188,921,980 1,178 2016 120,442,500 14,253,928 19,751,031 17,605,194 2,610,121 2,624,845 177,287,619 1,127 2015 112,417,754 11,288,290 19,990,667 16,238,536 1,356,546 1,940,812 163,232,605 1,061 2014 109,260,297 11,953,112 17,441,771 14,717,859 1,257,048 3,146,965 157,777,052 1,053 2013 98,769,115 9,218,784 16,960,633 13,260,981 426,203 3,390,173 142,025,889 980 2012 96,480,775 7,305,932 16,281,506 13,211,223 912,452 4,409,515 138,601,403 974 2011 94,363,577 5,521,347 17,411,587 11,859,207 1,625,479 3,165,034 133,946,231 961 2010 91,755,828 5,581,224 17,745,744 11,714,146 2,808,943 3,021,004 132,626,889 981 2009 90,850,656 7,153,411 17,294,183 11,234,157 6,616,841 3,219,407 136,368,655 1,040
------------- NOTES:
(1) Includes all ad valorem taxes, penalties and interest, Wake County sales tax, animal and business licenses and ABC revenues.
(2) Includes building permits, plan review fees, inspection fees, traffic impact analysis fees, grading permits, development fees and vehicle license fees.
(3) Includes revenue sharing entitlements, wine and beer tax, utility & piped natural gas sales tax, and federal, state and local grants.
(4) Includes sanitation fees, recreation fees, athletic fees, cultural art fees and facility rentals. Starting in FY2015 cell tower leases, recycled goods and festival revenues were reclassed from miscellaneous to sales and service.
(5) Includes interest earned on all governmental fund cash balances.
(6) Includes developer and intergovernmental reimbursements, fines, donations, and miscellaneous revenues. Totals prior to FY2015 also include cell tower lease procees, recycled goods sales and festival revenues, which were reclassed in FY2015 to sales and service.
(7) This table was prepared using the modified accrual basis of accounting.
$0
$200
$400
$600
$800
$1,000
$1,200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RE VE
NU ES
FISCAL YEAR
GENERAL GOVERNMENT REVENUES - PER CAPITA
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TOWN OF CARY, NORTH CAROLINA GOVERNMENTAL FUND REVENUES BY SOURCE(7)
Last Ten Fiscal Years
Table 7 Reimbursements Fiscal
Fiscal Taxes & Permits Inter- Sales and Investment and Year Per Capita Year Licenses(1) and Fees(2) Governmental(3) Service(4) Earnings(5) Miscellaneous(6) Total Revenues 2018 $129,856,637 16,407,020 27,114,220 19,234,855 1,328,512 2,174,577 196,115,821 1,196 2017 124,978,267 14,497,021 22,824,187 18,257,806 572,811 7,791,888 188,921,980 1,178 2016 120,442,500 14,253,928 19,751,031 17,605,194 2,610,121 2,624,845 177,287,619 1,127 2015 112,417,754 11,288,290 19,990,667 16,238,536 1,356,546 1,940,812 163,232,605 1,061 2014 109,260,297 11,953,112 17,441,771 14,717,859 1,257,048 3,146,965 157,777,052 1,053 2013 98,769,115 9,218,784 16,960,633 13,260,981 426,203 3,390,173 142,025,889 980 2012 96,480,775 7,305,932 16,281,506 13,211,223 912,452 4,409,515 138,601,403 974 2011 94,363,577 5,521,347 17,411,587 11,859,207 1,625,479 3,165,034 133,946,231 961 2010 91,755,828 5,581,224 17,745,744 11,714,146 2,808,943 3,021,004 132,626,889 981 2009 90,850,656 7,153,411 17,294,183 11,234,157 6,616,841 3,219,407 136,368,655 1,040
------------- NOTES:
(1) Includes all ad valorem taxes, penalties and interest, Wake County sales tax, animal and business licenses and ABC revenues.
(2) Includes building permits, plan review fees, inspection fees, traffic impact analysis fees, grading permits, development fees and vehicle license fees.
(3) Includes revenue sharing entitlements, wine and beer tax, utility & piped natural gas sales tax, and federal, state and local grants.
(4) Includes sanitation fees, recreation fees, athletic fees, cultural art fees and facility rentals. Starting in FY2015 cell tower leases, recycled goods and festival revenues were reclassed from miscellaneous to sales and service.
(5) Includes interest earned on all governmental fund cash balances.
(6) Includes developer and intergovernmental reimbursements, fines, donations, and miscellaneous revenues. Totals prior to FY2015 also include cell tower lease procees, recycled goods sales and festival revenues, which were reclassed in FY2015 to sales and service.
(7) This table was prepared using the modified accrual basis of accounting.
$0
$200
$400
$600
$800
$1,000
$1,200
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RE VE
NU ES
FISCAL YEAR
GENERAL GOVERNMENT REVENUES - PER CAPITA
TOWN OF CARY www.townofcary.org Page 209
UTILITY SYSTEM ENTERPRISE FUND REVENUES BY SOURCE (1)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA UTILITY SYSTEM ENTERPRISE FUND REVENUES BY SOURCE (1)
Last Ten Fiscal Years
Table 8
Fiscal Year Charge for Services
Other Operating Revenues
Investment Earnings (2)
Debt Proceeds (3)
Other Revenues &
Reimbursements(4) Development
Fees Total Per Customer
Revenues 2018 $79,753,854 1,991,851 1,387,496 9,791 15,826,184 11,302,497 110,271,673 1,777 2017 74,415,810 2,164,793 517,213 35,129,920 65,725 12,926,567 125,220,028 2,056 2016 70,279,268 2,294,731 2,726,503 1,787,840 471,718 10,333,229 87,893,289 1,471 2015 66,027,145 2,234,105 1,454,440 -- 1,617,402 10,749,949 82,083,041 1,408 2014 62,365,850 2,103,578 1,385,781 43,969,775 117,897 14,002,711 123,945,592 2,181 2013 59,322,612 1,900,904 508,292 111,509,486 380,971 13,017,268 186,639,533 3,383 2012 59,493,635 1,734,365 915,137 22,047,645 698,591 11,558,415 96,447,788 1,814 2011 56,780,324 1,518,837 1,676,045 1,041,230 798,885 8,899,219 70,714,540 1,356 2010 50,622,622 1,247,727 2,670,899 133,532 60,684 10,564,341 65,299,805 1,296 2009 45,303,024 1,236,627 6,475,153 26,944,462 508,109 10,631,698 91,099,073 1,861
------------- NOTES:
(1) This table was prepared using the modified accrual basis of accounting.
(2) Includes interest earned on all utility funds, net of market adjustment.
(3) Includes net proceeds related to refinancings, as well as premium proceeds.
(4) Includes proceeds from the sale of assets, non-operational grants, and miscellaneous non-operating revenues and reimbursements.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RE VE
NU ES
FISCAL YEAR
UTILITY REVENUES - PER CUSTOMER
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TOWN OF CARY, NORTH CAROLINA UTILITY SYSTEM ENTERPRISE FUND REVENUES BY SOURCE (1)
Last Ten Fiscal Years
Table 8
Fiscal Year Charge for Services
Other Operating Revenues
Investment Earnings (2)
Debt Proceeds (3)
Other Revenues &
Reimbursements(4) Development
Fees Total Per Customer
Revenues 2018 $79,753,854 1,991,851 1,387,496 9,791 15,826,184 11,302,497 110,271,673 1,777 2017 74,415,810 2,164,793 517,213 35,129,920 65,725 12,926,567 125,220,028 2,056 2016 70,279,268 2,294,731 2,726,503 1,787,840 471,718 10,333,229 87,893,289 1,471 2015 66,027,145 2,234,105 1,454,440 -- 1,617,402 10,749,949 82,083,041 1,408 2014 62,365,850 2,103,578 1,385,781 43,969,775 117,897 14,002,711 123,945,592 2,181 2013 59,322,612 1,900,904 508,292 111,509,486 380,971 13,017,268 186,639,533 3,383 2012 59,493,635 1,734,365 915,137 22,047,645 698,591 11,558,415 96,447,788 1,814 2011 56,780,324 1,518,837 1,676,045 1,041,230 798,885 8,899,219 70,714,540 1,356 2010 50,622,622 1,247,727 2,670,899 133,532 60,684 10,564,341 65,299,805 1,296 2009 45,303,024 1,236,627 6,475,153 26,944,462 508,109 10,631,698 91,099,073 1,861
------------- NOTES:
(1) This table was prepared using the modified accrual basis of accounting.
(2) Includes interest earned on all utility funds, net of market adjustment.
(3) Includes net proceeds related to refinancings, as well as premium proceeds.
(4) Includes proceeds from the sale of assets, non-operational grants, and miscellaneous non-operating revenues and reimbursements.
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RE VE
NU ES
FISCAL YEAR
UTILITY REVENUES - PER CUSTOMER
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REVENUE CAPACITY INFORMATION
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ASSESSED VALUE OF TAXABLE PROPERTY TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA ASSESSED VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years
Table 9 Assessed Value (1)
Wake County Chatham County Property Public Public Total Tax Rate Percent
Fiscal Real Personal Service Real Personal Service Taxable (Per $100 Increase Year Property Value (3) Companies Total Property Value (3) Companies Total Assessed Value Assessed Value) in Value (2)
2018 $22,739,106,503 2,764,856,646 194,211,864 25,698,175,013 669,113,654 45,669,157 1,132,137 715,914,948 26,414,089,961 $0.35 2% 2017 22,422,150,417 2,652,703,877 200,394,135 25,275,248,429 531,841,234 43,829,037 908,409 576,578,680 25,851,827,109 0.35 9% 2016 20,447,660,798 2,464,112,857 205,463,503 23,117,237,158 496,266,808 40,374,537 951,164 537,592,509 23,654,829,667 0.37 4% 2015 19,737,556,962 2,394,339,390 158,833,736 22,290,730,088 472,674,584 36,044,703 986,703 509,705,990 22,800,436,078 0.35 1% 2014 19,253,499,683 2,651,269,323 162,771,304 22,067,540,310 435,659,172 49,167,191 394,609 485,220,972 22,552,761,282 0.35 5% 2013 18,857,725,430 2,133,248,139 170,128,429 21,161,101,998 394,972,085 401,770 878,780 396,252,635 21,557,354,633 0.33 2% 2012 18,514,164,317 2,046,015,418 178,069,414 20,738,249,149 353,693,337 19,776,296 825,992 374,295,625 21,112,544,774 0.33 2% 2011 18,206,613,074 1,980,628,344 181,841,878 20,369,083,296 294,963,513 15,467,594 666,918 311,098,025 20,680,181,321 0.33 1% 2010 17,939,455,888 2,023,192,430 185,795,054 20,148,443,372 249,088,101 55,939 8,486 249,152,526 20,397,595,898 0.33 4% 2009 17,227,574,159 2,096,477,149 199,632,118 19,523,683,426 172,245,824 108,478 8,104 172,362,406 19,696,045,832 0.33 42%
------------ NOTES:
(1) Assessed Value is established by Wake County and Chatham County Assessors' offices. Assessed valuations are established at 100% of estimated market value for real property and 100% of actual value for personal property.
(2) A revaluation of all property is required every eight years by state statute. A revaluation occurred in 2016 in Wake County and in 2017 in Chatham County.
(3) Includes vehicles.
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COMPARISON OF TOWN OF CARY AND COUNTY ASSESSED VALUES TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA COMPARISON OF TOWN OF CARY AND COUNTY ASSESSED VALUES Last Ten Fiscal Years
Table 10
Wake County Assessed Value Ratio Chatham County Assessed Value Ratio Fiscal Town of Wake of Town Town of Chatham of Town Year Cary County(1) to County Cary County(2) to County 2018 $25,698,175,013 144,219,213,822 17.82 % $715,914,948 10,686,458,421 6.70 % 2017 25,275,248,429 141,411,010,294 17.87 576,578,680 10,062,280,684 5.73 2016 23,117,237,158 131,950,999,915 17.52 537,592,509 9,737,933,280 5.52 2015 22,290,730,088 127,947,523,008 17.42 509,705,990 9,418,243,039 5.41 2014 22,067,540,310 127,426,491,226 17.32 485,220,972 9,376,365,069 5.17 2013 21,161,101,998 122,450,151,129 17.28 396,252,635 9,110,794,992 4.35 2012 20,738,249,149 120,555,400,651 17.20 374,295,625 8,844,926,975 4.23 2011 20,369,083,296 119,535,621,641 17.04 311,098,025 8,693,574,553 3.58 2010 20,148,443,372 118,801,424,109 16.96 249,152,526 8,493,656,963 2.93 2009 19,523,683,426 116,610,525,500 16.74 172,362,406 7,638,601,923 2.26
---------------- NOTES:
(1) 2009-2018 data from Wake County Finance Department.
(2) 2009-2018 data from Chatham County Finance Department.
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PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA PROPERTY TAX RATES-DIRECT AND OVERLAPPING GOVERNMENTS Last Ten Fiscal Years
Table 11
Combined Tax Rate per $100 of Assessed Value
Fiscal Town of Wake Chatham Wake Chatham Year Cary County(1) County(2) County County
2018 $0.35 0.615 0.628 0.965 0.978
2017 0.35 0.600 0.634 0.950 0.984
2016 0.37 0.615 0.622 0.985 0.992
2015 0.35 0.578 0.622 0.928 0.972
2014 0.35 0.534 0.622 0.884 0.972
2013 0.33 0.534 0.622 0.864 0.952
2012 0.33 0.534 0.622 0.864 0.952
2011 0.33 0.534 0.622 0.864 0.952
2010 0.33 0.534 0.602 0.864 0.932
2009 0.33 0.534 0.653 0.864 0.983
---------------- NOTES:
(2) In April 1995, the Town expanded into Chatham County.
(1) A revaluation of all property is required every eight years by state statute. A revaluation occurred in January 2016 (Fiscal Year 2016) in Wake County. Chatham County's last revaluation occurred in January 2017 (Fiscal Year 2017).
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PRINCIPAL PROPERTY TAXPAYERS TOWN OF CARY, NORTH CAROLINA NINE YEARS AGO AND CURRENT YEAR (3)
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TOWN OF CARY, NORTH CAROLINA PRINCIPAL PROPERTY TAXPAYERS Nine Years Ago and Current Year (3)
Table 12 2009 2018
Total Total Assessed Assessed
Taxpayer Type of Enterprise Valuation Rank Valuation(1) Rank
SAS Institute, Inc. Computer Software $305,107,738 1 1.55 % $546,735,300 1 2.07 %
Highwoods Realty Limited Partnership Real Estate Investments 47,846,439 11 .24 243,381,282 2 .92
WMCI Raleigh LLC Real Estate Development (2) -- 132,320,193 3 .50
KRG Parkside LLC Real Estate Development (2) --- 93,609,999 4 .35
Crossroads Plaza, 1743 LP Real Estate Investments 71,252,784 5 .36 83,541,777 5 .32 Bradford Spe LLC Real Estate Development (2) -- 76,244,654 6 .29
Kellogg/Austin Quality Foods, Inc. Baked Goods (2) -- 74,244,315 7 .28
Four Star Ventures LLC Real Estate Development 63,992,082 7 .32 58,436,858 8 .22 MLC Automotive LLC Automotive (2) -- 55,960,509 9 .21
Siemens Medical Solutions Healthcare Technology (2) -- 54,582,383 10 .21
Morguard Lodge Apartments LLC Real Estate Development 42,081,023 15 .21 53,380,876 11 .20
TDC Regency Lakeview LLC Real Estate Investments 56,355,473 8 .29 53,120,012 12 .20
Guardian Tryon Village LLC Real Estate Development (2) -- 52,626,431 13 .20
PFRS Crossroads Corp Real Estate Investments 55,148,359 9 .28 51,522,090 14 .20
Duke Energy Progress Electric Utility 52,545,593 10 .27 51,411,586 15 .19 Cary Venture Limited Partnership Real Estate Investments 117,450,300 2 .60 (2) --
RH Donnelley Inc Publishing 105,246,579 3 .53 (2) --
MCI Communication Services Inc. Telecommunications 75,401,982 4 .38 (2) --
Weeks Realty LP Real Estate Development 64,559,994 6 .33 (2) --
KIR Cary Limited Partnership Real Estate Investments 45,351,880 12 .23 (2) --
SVF Weston Lakeside LLC Real Estate Investments 44,360,833 13 .23 (2) -- Fairfield RTP Limited Partnership Real Estate Development 44,244,654 14 .22 (2) --
Total $1,190,945,713 6.04 % $1,681,118,265 6.36 %
----------- NOTES: (1) Assessed valuation represents taxes assessed and due in the fiscal year ended June 30, 2018.
(2) Not within top fifteen ranking. (3) Source: Wake County, North Carolina Revenue Department
Valuation Valuation
Percentage Percentage of Total Town of Total Town
Assessed Assessed
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PROPERTY TAX LEVIES AND COLLECTIONS TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years
Table 13 Collected within the Fiscal Year
of Tax Levy Collections Total Collections to Date Fiscal Net Percent in Subsequent Percent Year Levy Amount of Levy Years (1) Amount of Levy 2018 $91,830,568 $91,759,631 99.9 % $ -- 91,759,631 99.9 % 2017 89,914,221 89,284,084 99.3 598,864 89,882,948 99.9 2016 87,321,107 86,712,014 99.3 573,480 87,285,494 99.9 2015 79,856,172 79,254,550 99.2 587,103 79,841,653 99.9 2014 78,746,669 78,031,508 99.0 691,618 78,723,126 99.9 2013 71,093,526 70,567,236 99.2 500,775 71,068,011 99.9 2012 69,608,379 69,206,629 99.4 370,994 69,577,623 99.9 2011 67,897,001 67,406,048 99.2 462,897 67,868,945 99.9 2010 66,767,280 66,126,105 99.0 612,995 66,739,100 99.9 2009 64,748,494 64,185,203 99.1 563,291 64,748,494 100.0
------------ NOTES:
(1) Includes writeoffs.
90.0
91.0
92.0
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PE RC
EN TA
GE O
F T OT
AL
FISCAL YEAR
PERCENT NET LEVY COLLECTED TO DATE
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TOWN OF CARY, NORTH CAROLINA PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years
Table 13 Collected within the Fiscal Year
of Tax Levy Collections Total Collections to Date Fiscal Net Percent in Subsequent Percent Year Levy Amount of Levy Years (1) Amount of Levy 2018 $91,830,568 $91,759,631 99.9 % $ -- 91,759,631 99.9 % 2017 89,914,221 89,284,084 99.3 598,864 89,882,948 99.9 2016 87,321,107 86,712,014 99.3 573,480 87,285,494 99.9 2015 79,856,172 79,254,550 99.2 587,103 79,841,653 99.9 2014 78,746,669 78,031,508 99.0 691,618 78,723,126 99.9 2013 71,093,526 70,567,236 99.2 500,775 71,068,011 99.9 2012 69,608,379 69,206,629 99.4 370,994 69,577,623 99.9 2011 67,897,001 67,406,048 99.2 462,897 67,868,945 99.9 2010 66,767,280 66,126,105 99.0 612,995 66,739,100 99.9 2009 64,748,494 64,185,203 99.1 563,291 64,748,494 100.0
------------ NOTES:
(1) Includes writeoffs.
90.0
91.0
92.0
93.0
94.0
95.0
96.0
97.0
98.0
99.0
100.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PE RC
EN TA
GE O
F T OT
AL
FISCAL YEAR
PERCENT NET LEVY COLLECTED TO DATE
TOWN OF CARY www.townofcary.org Page 217
AD VALOREM TAXES RECEIVABLE TOWN OF CARY, NORTH CAROLINA CURRENT YEAR AND LAST NINE FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA AD VALOREM TAXES RECEIVABLE Current Year and Last Nine Fiscal Years
Table 14
Fiscal Balance Current Net Collections Balance Year June 30, 2017 Levy and Credits (1) June 30, 2018 2018 $ -- 91,830,568 91,759,631 70,937 2017 630,137 -- 598,864 31,273 2016 39,875 -- 4,262 35,613 2015 16,267 -- 1,748 14,519 2014 25,942 -- 2,399 23,543 2013 27,596 -- 2,081 25,515 2012 31,580 -- 824 30,756 2011 28,691 -- 635 28,056 2010 28,789 -- 609 28,180 2009 33,894 -- 33,894 --
Total $862,771 91,830,568 92,404,947 288,392
Less: Allowance for uncollectable ad valorem taxes receivable (156,321)
Ad valorem taxes receivable, net $132,071
------------ NOTES:
(1) Includes collections of taxes, rebates from Wake and Chatham Counties and other adjustments to reconcile to the respective county records.
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ANALYSIS OF CURRENT TAX LEVY TOWN OF CARY, NORTH CAROLINA FOR THE FISCAL YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA ANALYSIS OF CURRENT TAX LEVY For the Fiscal Year Ended June 30, 2018
Table 15 Total Levy Property Excluding
Town-Wide Registered Registered Property Total Motor Motor Valuation Rate Levy Vehicles Vehicles
Original Levy: Property Taxed at Current Year's Rate $26,386,961,435 0.35 92,396,987 86,146,651 6,250,336 Penalties -- 36,158 36,158 -- Total 26,386,961,435 92,433,145 86,182,809 6,250,336
Discoveries: -- 0.35 -- -- --
Prior Year Taxes 27,128,526 63,252 61,704 1,548 Total 26,414,089,961 92,496,397 86,244,513 6,251,884
Abatements -- (665,829) (639,912) (25,917)
Total Property Valuation $26,414,089,961
Net Levy 91,830,568 85,604,601 6,225,967
Uncollected at June 30, 2018 (70,937) (70,808) (129)
Current Year Taxes Collected, net $91,759,631 85,533,793 6,225,838
Current Levy Collection Percentage 99.92% 99.92% 100.00%
Secondary Market Disclosures:
Assessed Valuation: Assessment Ratio 100.00% Real Property $23,408,220,157 Personal Property 2,810,525,803 Public Service Companies 195,344,001
Total Assessed Valuation $26,414,089,961
Tax Rate per $100 0.35 Levy (includes discoveries, releases and abatements) $92,496,397
------------ NOTES:
(1) Percentage of appraised value has been established by statute. (2) Valuation of railroads, telephone companies and other utilities as determined by the North Carolina Property Tax Commission. (3) The levy includes interest and penalties.
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DEBT CAPACITY INFORMATION
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RATIOS OF OUTSTANDING DEBT BY TYPE TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years
Table 16
Governmental Activities Business-Type Activities General COPS, LOBS & General State Total
Fiscal Obligation Installment Capital Obligation Revenue Revolving Primary Per Year Bonds(1) Financing(1) Leases Bonds(1) Bonds(1) Loan (2) Government Capita(3)(4)
2018 $119,839,834 12,215,342 1,522,714 68,843,077 206,238,334 33,618,735 442,278,036 2,698 2017 96,723,543 14,913,239 1,639,470 75,429,422 210,923,117 36,508,975 436,137,766 2,719 2016 105,764,918 17,641,223 1,470,629 82,140,373 179,661,192 39,399,218 426,077,553 2,709 2015 113,782,157 20,394,115 1,477,266 88,104,516 183,337,148 40,539,461 447,634,663 2,909 2014 121,912,725 23,162,090 1,738,674 94,247,417 143,640,339 43,494,973 428,196,218 2,857 2013 97,310,800 25,541,080 1,365,817 55,636,720 146,250,103 44,492,429 370,596,949 2,556 2012 104,452,346 28,432,107 1,606,905 60,670,878 49,340,524 31,665,450 276,168,210 1,941 2011 111,793,159 31,153,590 1,319,674 65,890,850 51,745,932 10,284,309 272,187,514 1,953 2010 115,938,181 33,392,373 1,321,414 69,722,448 54,666,341 10,230,332 285,271,089 2,109 2009 121,249,575 35,813,715 2,294,404 72,877,432 57,541,749 10,862,528 300,639,403 2,292
------------- NOTES:
(1) Debt is net of any related premiums or discounts.
(2) State revolving loan amount is net of a long-term receivable relating to interlocal agreements with the Town of Apex and the Town of Holly Springs for their portions of the Western Wake Regional Wastewater Management Facility loan according to their respective partner percentages for the various regional plant projects.
(3) See Table 22 for population data.
(4) % of Personal Income cannot be calculated because separate personal income data is not available for the Town of Cary. See Table 22 for further explanation.
Governmental Activities - General Obligation Bonds
27.1%
COPS & Installment Financing
2.8%
Capital Leases 0.3%
Business Activities - General
Obligation Bonds 15.6%
Revenue Bonds 46.6%
State Revolving Loan
7.6%
FISCAL YEAR 2018 OUTSTANDING DEBT TOTAL PRIMARY GOVERNMENT
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TOWN OF CARY, NORTH CAROLINA RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years
Table 16
Governmental Activities Business-Type Activities General COPS, LOBS & General State Total
Fiscal Obligation Installment Capital Obligation Revenue Revolving Primary Per Year Bonds(1) Financing(1) Leases Bonds(1) Bonds(1) Loan (2) Government Capita(3)(4)
2018 $119,839,834 12,215,342 1,522,714 68,843,077 206,238,334 33,618,735 442,278,036 2,698 2017 96,723,543 14,913,239 1,639,470 75,429,422 210,923,117 36,508,975 436,137,766 2,719 2016 105,764,918 17,641,223 1,470,629 82,140,373 179,661,192 39,399,218 426,077,553 2,709 2015 113,782,157 20,394,115 1,477,266 88,104,516 183,337,148 40,539,461 447,634,663 2,909 2014 121,912,725 23,162,090 1,738,674 94,247,417 143,640,339 43,494,973 428,196,218 2,857 2013 97,310,800 25,541,080 1,365,817 55,636,720 146,250,103 44,492,429 370,596,949 2,556 2012 104,452,346 28,432,107 1,606,905 60,670,878 49,340,524 31,665,450 276,168,210 1,941 2011 111,793,159 31,153,590 1,319,674 65,890,850 51,745,932 10,284,309 272,187,514 1,953 2010 115,938,181 33,392,373 1,321,414 69,722,448 54,666,341 10,230,332 285,271,089 2,109 2009 121,249,575 35,813,715 2,294,404 72,877,432 57,541,749 10,862,528 300,639,403 2,292
------------- NOTES:
(1) Debt is net of any related premiums or discounts.
(2) State revolving loan amount is net of a long-term receivable relating to interlocal agreements with the Town of Apex and the Town of Holly Springs for their portions of the Western Wake Regional Wastewater Management Facility loan according to their respective partner percentages for the various regional plant projects.
(3) See Table 22 for population data.
(4) % of Personal Income cannot be calculated because separate personal income data is not available for the Town of Cary. See Table 22 for further explanation.
Governmental Activities - General Obligation Bonds
27.1%
COPS & Installment Financing
2.8%
Capital Leases 0.3%
Business Activities - General
Obligation Bonds 15.6%
Revenue Bonds 46.6%
State Revolving Loan
7.6%
FISCAL YEAR 2018 OUTSTANDING DEBT TOTAL PRIMARY GOVERNMENT
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RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA Last Ten Fiscal Years
Table 17
General Allowable Net Ratio of Net Net Bonded Gross Bonded Fiscal Assessed Bonded Statutory Bonded Bonded Debt to Debt Per Debt Per Year Population(1) Value Debt(2) Deductions(3) Debt(4) Assessed Value Capita Capita 2018 163,930 $26,414,089,961 188,682,911 12,650,000 176,032,911 .67 % $1,074 $1,151 2017 160,390 25,851,827,109 172,152,965 16,140,000 156,012,965 .60 973 1,073 2016 157,259 23,654,829,667 187,905,291 19,660,000 168,245,291 .71 1,070 1,195 2015 153,868 22,800,436,078 201,886,673 23,210,000 178,676,673 .78 1,161 1,312 2014 149,851 22,552,761,282 216,160,142 26,590,000 189,570,142 .84 1,265 1,443 2013 144,982 21,557,354,634 145,415,001 29,900,000 115,515,001 .54 797 1,003 2012 142,257 21,112,544,774 156,770,000 33,130,000 123,640,000 .59 869 1,102 2011 139,382 20,680,181,321 168,509,999 36,545,814 131,964,185 .64 947 1,209 2010 135,264 20,397,595,898 177,705,000 39,948,603 137,756,397 .68 1,018 1,314 2009 131,173 19,696,045,832 186,090,000 43,176,456 142,913,544 .73 1,090 1,419
------------ NOTES:
(1) All data is estimated by the Town of Cary Planning Department, except for 2010, which is from the U.S. Census Bureau.
(2) General bonded debt includes all general obligation bonds (general and utility). Amount does not include revenue bonds. See Table 16 for details.
(3) Deductions are made for gross debt incurred for water per statutory requirements. Amount is also used in the calculation for debt applicable to debt limit in Table 18.
(4) Net bonded debt equals general bonded debt less allowable statutory deductions.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
DE BT
FISCAL YEAR
GROSS BONDED DEBT - PER CAPITA
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TOWN OF CARY, NORTH CAROLINA RATIO OF NET GENERAL BONDED DEBT TO ASSESSED VALUE AND BONDED DEBT PER CAPITA Last Ten Fiscal Years
Table 17
General Allowable Net Ratio of Net Net Bonded Gross Bonded Fiscal Assessed Bonded Statutory Bonded Bonded Debt to Debt Per Debt Per Year Population(1) Value Debt(2) Deductions(3) Debt(4) Assessed Value Capita Capita 2018 163,930 $26,414,089,961 188,682,911 12,650,000 176,032,911 .67 % $1,074 $1,151 2017 160,390 25,851,827,109 172,152,965 16,140,000 156,012,965 .60 973 1,073 2016 157,259 23,654,829,667 187,905,291 19,660,000 168,245,291 .71 1,070 1,195 2015 153,868 22,800,436,078 201,886,673 23,210,000 178,676,673 .78 1,161 1,312 2014 149,851 22,552,761,282 216,160,142 26,590,000 189,570,142 .84 1,265 1,443 2013 144,982 21,557,354,634 145,415,001 29,900,000 115,515,001 .54 797 1,003 2012 142,257 21,112,544,774 156,770,000 33,130,000 123,640,000 .59 869 1,102 2011 139,382 20,680,181,321 168,509,999 36,545,814 131,964,185 .64 947 1,209 2010 135,264 20,397,595,898 177,705,000 39,948,603 137,756,397 .68 1,018 1,314 2009 131,173 19,696,045,832 186,090,000 43,176,456 142,913,544 .73 1,090 1,419
------------ NOTES:
(1) All data is estimated by the Town of Cary Planning Department, except for 2010, which is from the U.S. Census Bureau.
(2) General bonded debt includes all general obligation bonds (general and utility). Amount does not include revenue bonds. See Table 16 for details.
(3) Deductions are made for gross debt incurred for water per statutory requirements. Amount is also used in the calculation for debt applicable to debt limit in Table 18.
(4) Net bonded debt equals general bonded debt less allowable statutory deductions.
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
DE BT
FISCAL YEAR
GROSS BONDED DEBT - PER CAPITA
TOWN OF CARY www.townofcary.org Page 222
COMPUTATION OF LEGAL DEBT MARGIN TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA COMPUTATION OF LEGAL DEBT MARGIN Last Ten Fiscal Years
Table 18
Net Debt Debt Limit Less: as a 8% of Total Amount of Debt Legal % of
Fiscal Assessed Assessed Applicable to Debt Debt Year Value Value Debt Limit Margin Limit 2018 $26,414,089,961 2,113,127,197 (205,820,967) 1,907,306,230 9.74% 2017 25,851,827,109 2,068,146,169 (219,650,674) 1,848,495,495 10.62% 2016 23,654,829,667 1,892,386,373 (234,442,143) 1,657,944,230 12.39% 2015 22,800,436,078 1,824,034,886 (291,228,054) 1,532,806,832 15.97% 2014 22,552,761,282 1,804,220,903 (305,150,906) 1,499,069,997 16.91% 2013 21,557,354,634 1,724,588,371 (307,161,211) 1,417,427,160 17.81% 2012 21,112,544,774 1,689,003,582 (426,859,283) 1,262,144,299 25.27% 2011 20,680,181,321 1,654,414,506 (357,336,516) 1,297,077,990 21.60% 2010 20,397,595,898 1,631,807,672 (365,293,341) 1,266,514,331 22.39% 2009 19,696,045,832 1,575,683,667 (373,852,961) 1,201,830,706 23.73%
------------ NOTES:
Governmental General Obligation Bonds (includes related premium & discount) $119,839,834 Utility General Obligation Bonds (includes related premium & discount) 68,843,077 General Obligation Bonds Authorized, Not Issued (2) 16,050,000 Certificates of Participation, Limited Obligation Bonds and Installment Purchases 12,215,342 Capital Leases 1,522,714
Gross Bonded Debt 218,470,967
Statutory Deductions: Bonded Debt Included in Gross Debt Incurred for Water (12,650,000)
Total Net Debt Applicable to Debt Limit $205,820,967
Date Description Approved Transportation 11/6/2012 $13,715,000 Parks 11/6/2012 1,825,000 Fire 11/6/2012 510,000
$16,050,000
(1) Calculation for Net Debt Applicable to Debt Limit:
(2) General Obligation Bonds Authorized, Not Issued for FY2017
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COMPUTATION OF DIRECT AND OVERLAPPING DEBT TOWN OF CARY, NORTH CAROLINA JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA COMPUTATION OF DIRECT AND OVERLAPPING DEBT June 30, 2018
Table 19
Percentage Amount Governmental Applicable to Applicable to Activities Debt Town of Cary (2) Town of Cary
Direct Debt: Town of Cary $133,577,890 (1) 100.00% $133,577,890
Overlapping Debt (3) :
County of Wake 1,762,270,000 17.82% 314,015,877 County of Chatham -- 6.70% --
Total Overlapping Debt 1,762,270,000 314,015,877
TOTAL $1,895,847,890 $447,593,767
---------- NOTES:
(1) Includes all Governmental Activities debt. See Table 16.
(2) Allocated based on assessed valuation.
(3) Overlapping debt is owed in total by Wake and Chatham Counties and benefits all areas within the respective counties, including cities and towns. Payment of this debt is the responsibility of Wake and Chatham Counties. Overlapping for Wake County debt does not include debt of the Special Airport District of Durham and Wake County, as these bonds are payable by the Airport Authority out of Airport revenues.
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BOND COVERAGE - COMBINED ENTERPRISE SYSTEM BONDS TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA BOND COVERAGE COMBINED ENTERPRISE SYSTEM BONDS Last Ten Fiscal Years
Table 20 15% of
Revenue Income Utility Fiscal Available for Current Available for Total Unrestricted Revenue Bond Year Debt Service(1) Expenses(2) Debt Service Debt Service Principal(3) Interest(3) Coverage(5) Net Position Debt Service Coverage(4)(5)
2018 $84,359,493 41,505,542 42,853,951 24,514,055 12,959,082 11,554,973 1.75 $36,755,220 11,907,118 6.69 2017 77,105,764 41,995,022 35,110,742 23,115,672 12,063,987 11,051,685 1.52 37,763,376 10,206,980 7.14 2016 75,300,502 36,557,203 38,743,299 23,104,457 11,804,553 11,299,904 1.68 34,545,458 9,876,857 7.42 2015 71,291,969 39,017,865 32,274,104 21,080,510 10,685,108 10,395,402 1.53 28,159,226 7,977,206 7.58 2014 65,959,873 40,868,133 25,091,740 16,226,874 8,020,108 8,206,766 1.55 30,205,589 7,838,238 7.05 2013 61,961,664 33,656,322 28,305,342 13,588,804 7,606,814 5,981,990 2.08 34,628,318 5,338,846 11.79 2012 62,471,787 32,869,609 29,602,178 12,940,447 7,953,767 4,986,680 2.29 27,365,411 4,577,481 12.45 2011 60,520,299 31,620,735 28,899,564 12,144,826 7,016,891 5,127,935 2.38 28,593,836 5,203,486 11.05 2010 54,969,108 30,089,803 24,879,305 12,464,515 6,898,849 5,565,666 2.00 28,062,098 5,264,476 10.06 2009 53,168,976 28,819,608 24,349,368 11,971,839 6,939,487 5,032,352 2.03 25,774,948 5,322,835 9.42
------------- NOTES:
(1) Includes charges for services, other operating revenues, investment earnings, and miscellaneous revenues in the utility systems enterprise fund.
(2) Includes administrative, field operations, utility systems maintenance, water reclamation facilities, and Cary/Apex water treatment plant in the utility systems enterprise fund. Excludes reimbursement to general fund for indirect costs, depreciation, interest expense and other debt related expenses.
(3) Debt service does not include the reduction for the portion of the state revolving loan reimbursed by interlocal partners.
(4) Income available for debt service plus 15% utility operations fund balance over revenue bond debt service.
(5)Debt management policy states coverage ratios for the Combined Enterprise System debt will be maintained at 1.4 times for revenue bond debt service and 1.1 times for total debt. This is above levels required in the debt covenants of 1.2 times for revenue bonds and 1.0 times for total debt.
0.00
0.50
1.00
1.50
2.00
2.50
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RA TIO
FISCAL YEAR
DEBT SERVICE COVERAGE - TOTAL DEBT
Actual Policy
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TOWN OF CARY, NORTH CAROLINA BOND COVERAGE COMBINED ENTERPRISE SYSTEM BONDS Last Ten Fiscal Years
Table 20 15% of
Revenue Income Utility Fiscal Available for Current Available for Total Unrestricted Revenue Bond Year Debt Service(1) Expenses(2) Debt Service Debt Service Principal(3) Interest(3) Coverage(5) Net Position Debt Service Coverage(4)(5)
2018 $84,359,493 41,505,542 42,853,951 24,514,055 12,959,082 11,554,973 1.75 $36,755,220 11,907,118 6.69 2017 77,105,764 41,995,022 35,110,742 23,115,672 12,063,987 11,051,685 1.52 37,763,376 10,206,980 7.14 2016 75,300,502 36,557,203 38,743,299 23,104,457 11,804,553 11,299,904 1.68 34,545,458 9,876,857 7.42 2015 71,291,969 39,017,865 32,274,104 21,080,510 10,685,108 10,395,402 1.53 28,159,226 7,977,206 7.58 2014 65,959,873 40,868,133 25,091,740 16,226,874 8,020,108 8,206,766 1.55 30,205,589 7,838,238 7.05 2013 61,961,664 33,656,322 28,305,342 13,588,804 7,606,814 5,981,990 2.08 34,628,318 5,338,846 11.79 2012 62,471,787 32,869,609 29,602,178 12,940,447 7,953,767 4,986,680 2.29 27,365,411 4,577,481 12.45 2011 60,520,299 31,620,735 28,899,564 12,144,826 7,016,891 5,127,935 2.38 28,593,836 5,203,486 11.05 2010 54,969,108 30,089,803 24,879,305 12,464,515 6,898,849 5,565,666 2.00 28,062,098 5,264,476 10.06 2009 53,168,976 28,819,608 24,349,368 11,971,839 6,939,487 5,032,352 2.03 25,774,948 5,322,835 9.42
------------- NOTES:
(1) Includes charges for services, other operating revenues, investment earnings, and miscellaneous revenues in the utility systems enterprise fund.
(2) Includes administrative, field operations, utility systems maintenance, water reclamation facilities, and Cary/Apex water treatment plant in the utility systems enterprise fund. Excludes reimbursement to general fund for indirect costs, depreciation, interest expense and other debt related expenses.
(3) Debt service does not include the reduction for the portion of the state revolving loan reimbursed by interlocal partners.
(4) Income available for debt service plus 15% utility operations fund balance over revenue bond debt service.
(5)Debt management policy states coverage ratios for the Combined Enterprise System debt will be maintained at 1.4 times for revenue bond debt service and 1.1 times for total debt. This is above levels required in the debt covenants of 1.2 times for revenue bonds and 1.0 times for total debt.
0.00
0.50
1.00
1.50
2.00
2.50
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
RA TIO
FISCAL YEAR
DEBT SERVICE COVERAGE - TOTAL DEBT
Actual Policy
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RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR BONDED DEBT TO TOTAL GENERAL EXPENDITURES TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years
Table 21 Ratio of Debt Service
Total Total to Total Fiscal Debt General General Year Principal Interest Service(1) Expenditures Expenditures 2018 $12,423,432 3,889,883 16,313,315 152,646,226 10.7 % 2017 11,175,613 3,312,564 14,488,177 141,481,720 10.2 2016 10,555,953 3,612,236 14,168,189 132,161,940 10.7 2015 10,417,753 3,978,512 14,396,265 129,627,217 11.1 2014 7,268,770 2,768,004 10,036,774 124,815,402 8.0 2013 9,570,193 3,268,400 12,838,593 117,377,865 10.9 2012 9,807,673 3,680,121 13,487,794 116,450,837 11.6 2011 7,575,082 3,784,667 11,359,749 108,872,685 10.4 2010 7,969,735 4,400,383 12,370,118 106,221,359 11.6 2009 8,296,355 3,988,326 12,284,681 106,515,936 11.5
------------- NOTES:
(1) Includes installment purchases; does not include capital leases. Includes General Fund debt only.
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ra tio
Fiscal Year
RATIO OF DEBT SERVICE TO TOTAL GENERAL EXPENDITURES
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TOWN OF CARY, NORTH CAROLINA RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR BONDED DEBT TO TOTAL GENERAL EXPENDITURES Last Ten Fiscal Years
Table 21 Ratio of Debt Service
Total Total to Total Fiscal Debt General General Year Principal Interest Service(1) Expenditures Expenditures 2018 $12,423,432 3,889,883 16,313,315 152,646,226 10.7 % 2017 11,175,613 3,312,564 14,488,177 141,481,720 10.2 2016 10,555,953 3,612,236 14,168,189 132,161,940 10.7 2015 10,417,753 3,978,512 14,396,265 129,627,217 11.1 2014 7,268,770 2,768,004 10,036,774 124,815,402 8.0 2013 9,570,193 3,268,400 12,838,593 117,377,865 10.9 2012 9,807,673 3,680,121 13,487,794 116,450,837 11.6 2011 7,575,082 3,784,667 11,359,749 108,872,685 10.4 2010 7,969,735 4,400,383 12,370,118 106,221,359 11.6 2009 8,296,355 3,988,326 12,284,681 106,515,936 11.5
------------- NOTES:
(1) Includes installment purchases; does not include capital leases. Includes General Fund debt only.
0.0
2.0
4.0
6.0
8.0
10.0
12.0
14.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Ra tio
Fiscal Year
RATIO OF DEBT SERVICE TO TOTAL GENERAL EXPENDITURES
TOWN OF CARY www.townofcary.org Page 226
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DEMOGRAPHIC AND ECONOMIC INFORMATION
TOWN OF CARY www.townofcary.org Page 228
DEMOGRAPHIC STATISTICS TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA DEMOGRAPHIC STATISTICS Last Ten Fiscal Years
Table 22
Wake County Cary Fiscal Median Unemployment Unemployment Year Age(3) Rate (%)(4) Rate (%)(4)
2018 163,930 $43,925 36.6 3.6 3.2 2017 160,390 41,985 36.6 3.6 3.3 2016 157,259 41,785 36.6 4.3 3.6 2015 153,868 41,785 36.6 5.0 4.1 2014 149,851 41,785 36.6 5.0 3.9 2013 144,982 41,554 36.6 6.5 4.9 2012 142,257 42,332 36.6 7.6 5.8 2011 139,382 42,344 36.6 8.4 6.3 2010 135,234 32,974 33.7 8.5 6.4 2009 131,173 32,974 33.7 8.6 6.6
------------- NOTES:
(1) 2009 - 2010 data is as of April 30 and has been revised based on the 2010 Census. Data for 2011 - 2018 is as of June 30 as estimated by the Town of Cary Planning Department.
(2) 2009 - 2010 data is from U.S. Census Bureau, Census 2000. 2011 - 2018 data is from the American Community Survey. Separate personal income data for Cary is unavailable from the U.S. Department of Commerce, Bureau of Economic Analysis.
(3) 2009 - 2010 data is from U.S. Census Bureau, Census 2000. 2011 through 2018 data is from the U.S. Census Bureau, Census 2010.
(4) Data is from the U.S. Department of Labor, Bureau of Labor Statistics for the month of June.
Per Capita Personal Income(2)Population(1)
--
50,000
100,000
150,000
200,000
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Population By Fiscal Year
TOWN OF CARY www.townofcary.org Page 229
PRINCIPAL EMPLOYERS TOWN OF CARY, NORTH CAROLINA NINE YEARS AGO AND CURRENT YEAR
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TOWN OF CARY, NORTH CAROLINA PRINCIPAL EMPLOYERS Nine Years Ago and Current Year
Table 23 (2) (1)
2009 2018
Percentage Percentage of Total Town of Total Town
Employer Employees Rank Employment Employees Rank Employment
SAS Institute, Inc. 4,203 1 6.54 % 5,616 1 6.16 % Met Life (4) -- 2,600 2 2.85 Verizon Business (4) -- 2,000 3 2.20 Powerteam Services (4) -- 1,993 4 2.19 Siemens Medical Solutions USA 650 8 1.01 1,600 5 1.76 HCL Technologies (4) -- 1,500 6 1.65 ABB, Inc. (4) -- 1,300 7 1.43 Town of Cary 1,153 5 1.79 1,222 8 1.34 American Airlines Reservation Center 1,067 6 1.66 1,200 9 1.32 DB Global Technologies (4) -- 1,000 10 1.10 MCI Worldcom 1,800 2 2.80 (4) -- Cary Towne Center 1,700 3 2.65 (4) -- WakeMed Cary 1,225 4 1.91 (4) -- Austin Quality Foods/Kelloggs 783 7 1.22 (4) -- John Deere - Agricultural and Turf Division 400 9 .62 (4) -- Global Knowledge Network 370 10 .58 (4) --
Total 13,351 20.78 % 20,031 22.00 %
Total Employment (3) 64,243 91,100
----------- NOTES:
(1) From '2018_Major_Employers_by_Size.pdf', Wake County Economic Development website. (2) From Town of Cary Annual Operating Budget Fiscal Year 2010, approved June 2009. (3) Total employment is from the U.S. Department of Labor, Bureau of Labor Statistics for the month of June. (4) Not within top ten ranking.
TOWN OF CARY www.townofcary.org Page 230
COMMERCIAL ACTIVITY TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA COMMERCIAL ACTIVITY Last Ten Fiscal Years Table 24
Building Permits (1)
Fiscal Commercial Residential Total Sales(2) Bank Deposits Year Number Value Number Value Number Value Total Taxable Per Capita at June 30 (3)
2018 596 $296,255,531 2,905 $366,377,168 3,501 $662,632,699 (2) (2) (4)
2017 638 172,195,683 2,882 350,395,583 3,520 522,591,266 (2) (2) $3,922,424,000 2016 628 288,778,925 2,741 303,625,699 3,369 592,404,624 (2) (2) 3,506,831,000 2015 535 169,945,449 2,423 277,886,584 2,958 447,832,033 (2) (2) 3,264,182,000 2014 558 519,999,528 2,659 326,078,101 3,217 846,077,629 (2) (2) 3,138,957,000 2013 520 207,076,301 2,561 308,482,214 3,081 515,558,515 (2) (2) 2,866,728,000 2012 427 83,728,341 2,361 272,232,209 2,788 355,960,550 (2) (2) 2,684,627,000 2011 416 75,450,554 2,252 197,146,669 2,668 272,597,223 (2) (2) 2,259,273,000 2010 343 83,513,481 2,634 269,125,766 2,977 352,639,247 (2) (2) 2,185,106,000 2009 381 379,265,695 2,254 223,923,821 2,635 603,189,516 $1,354,632,738 9,719 2,219,655,000
------------- NOTES:
(1) Compiled by the Town of Cary Permits and Inspections Department. Numbers represent new construction and additions. Residential includes multi-family construction.
(2) Data from the North Carolina Department of Revenue, Sales and Use Tax Division. As of July 2009, total taxable sales by municipality is unavailable from the North Carolina Department of Revenue.
(3) Federal Deposit Insurance Corporation Summary of Deposits data.
(4) Information is unavailable.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PE RC
EN TA
GE O
F T OT
AL
FISCAL YEAR
GROWTH MIX - BUILDING PERMIT VALUES Residential
Commercial
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TOWN OF CARY, NORTH CAROLINA COMMERCIAL ACTIVITY Last Ten Fiscal Years
Table 24
Building Permits (1)
Fiscal Commercial Residential Total Sales(2) Bank Deposits Year Number Value Number Value Number Value Total Taxable Per Capita at June 30 (3)
2018 596 $296,255,531 2,905 $366,377,168 3,501 $662,632,699 (2) (2) (4)
2017 638 172,195,683 2,882 350,395,583 3,520 522,591,266 (2) (2) $3,922,424,000 2016 628 288,778,925 2,741 303,625,699 3,369 592,404,624 (2) (2) 3,506,831,000 2015 535 169,945,449 2,423 277,886,584 2,958 447,832,033 (2) (2) 3,264,182,000 2014 558 519,999,528 2,659 326,078,101 3,217 846,077,629 (2) (2) 3,138,957,000 2013 520 207,076,301 2,561 308,482,214 3,081 515,558,515 (2) (2) 2,866,728,000 2012 427 83,728,341 2,361 272,232,209 2,788 355,960,550 (2) (2) 2,684,627,000 2011 416 75,450,554 2,252 197,146,669 2,668 272,597,223 (2) (2) 2,259,273,000 2010 343 83,513,481 2,634 269,125,766 2,977 352,639,247 (2) (2) 2,185,106,000 2009 381 379,265,695 2,254 223,923,821 2,635 603,189,516 $1,354,632,738 9,719 2,219,655,000
------------- NOTES:
(1) Compiled by the Town of Cary Permits and Inspections Department. Numbers represent new construction and additions. Residential includes multi-family construction.
(2) Data from the North Carolina Department of Revenue, Sales and Use Tax Division. As of July 2009, total taxable sales by municipality is unavailable from the North Carolina Department of Revenue.
(3) Federal Deposit Insurance Corporation Summary of Deposits data.
(4) Information is unavailable.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PE RC
EN TA
GE O
F T OT
AL
FISCAL YEAR
GROWTH MIX - BUILDING PERMIT VALUES Residential
Commercial
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OPERATING INFORMATION
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EMPLOYEE POSITION AUTHORIZATION BY DEPARTMENT (1)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS (2)
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TOWN OF CARY, NORTH CAROLINA EMPLOYEE POSITION AUTHORIZATION BY DEPARTMENT (1)
Last Ten Fiscal Years (2)
Table 25
Transportation Development Inspections Public Parks, Fiscal Employees Fiscal Town Technology Human & Water Support & Works / Public Recreation Year Per Thousand Year Clerk Legal Administration Services Finance Resources Planning Engineering Facilities Resources Services Permits Police Fire Utilities Works Utilities and Culture Total Population
2018 4.00 4.00 21.69 31.00 49.52 14.63 27.00 -- 48.00 42.63 15.00 43.00 243.50 222.00 -- 330.00 107.25 81.00 1284.22 7.83 2017 4.00 4.00 24.69 31.00 44.53 14.63 27.00 -- 48.00 42.63 15.00 43.00 230.50 222.00 -- 331.00 107.25 81.00 1270.23 7.92 2016 4.00 4.00 23.69 29.00 43.55 14.63 26.00 -- 47.00 40.63 14.00 43.00 225.50 219.00 -- 322.00 107.00 78.50 1241.50 7.89 2015 4.00 4.00 23.69 25.00 43.50 13.63 26.00 -- 43.00 38.50 11.63 42.00 223.50 216.00 -- 318.50 106.75 75.25 1214.95 7.90 2014 3.75 3.00 21.63 25.00 43.50 13.63 24.00 -- 42.00 38.50 11.63 39.00 217.50 216.00 -- 312.50 102.75 67.25 1181.64 7.89 2013 3.75 3.00 15.63 24.00 43.50 12.25 30.00 62.00 -- -- -- 43.63 216.50 222.00 406.25 -- -- 73.00 1155.51 7.97 2012 3.75 3.00 15.63 24.00 42.50 12.25 27.00 62.00 -- -- -- 45.63 215.50 221.00 401.25 -- -- 72.00 1145.51 8.05 2011 3.75 3.00 15.63 23.00 49.13 12.25 27.00 62.00 -- -- -- 45.63 211.50 206.00 398.00 -- -- 70.25 1127.14 8.09 2010 3.75 3.00 14.63 24.00 54.13 12.25 33.00 64.00 -- -- -- 49.63 207.00 206.00 413.75 -- -- 67.50 1152.64 8.52 2009 3.75 3.00 14.63 24.00 54.13 12.25 33.00 64.00 -- -- -- 50.63 201.00 206.00 412.00 -- -- 67.50 1145.89 8.74
------------- NOTES:
(1) Regular full and part-time employees only, expressed as full time equivalents.
Does not include temporary employees.
(2) As of June 30 of the fiscal year. Data provided by the Town of Cary Budget Department.
(3) Overhires are budgeted in Public Safety to accomodate staffing transitions. As of 6/30/18,
the 18 overhire positions were vacant.
(4) Engineering was eliminated and Transportation & Facilities, Water Resources and Development Support Services were created and Public Works and Utilities were separated as part of a reorganization during FY2014.
7.20
7.40
7.60
7.80
8.00
8.20
8.40
8.60
8.80
9.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PE R
TH OU
SA ND
FISCAL YEAR
EMPLOYEES PER THOUSAND POPULATION
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TOWN OF CARY, NORTH CAROLINA EMPLOYEE POSITION AUTHORIZATION BY DEPARTMENT (1)
Last Ten Fiscal Years (2)
Table 25
Transportation Development Inspections Public Parks, Fiscal Employees Fiscal Town Technology Human & Water Support & Works / Public Recreation Year Per Thousand Year Clerk Legal Administration Services Finance Resources Planning Engineering Facilities Resources Services Permits Police Fire Utilities Works Utilities and Culture Total Population
2018 4.00 4.00 21.69 31.00 49.52 14.63 27.00 -- 48.00 42.63 15.00 43.00 243.50 222.00 -- 330.00 107.25 81.00 1284.22 7.83 2017 4.00 4.00 24.69 31.00 44.53 14.63 27.00 -- 48.00 42.63 15.00 43.00 230.50 222.00 -- 331.00 107.25 81.00 1270.23 7.92 2016 4.00 4.00 23.69 29.00 43.55 14.63 26.00 -- 47.00 40.63 14.00 43.00 225.50 219.00 -- 322.00 107.00 78.50 1241.50 7.89 2015 4.00 4.00 23.69 25.00 43.50 13.63 26.00 -- 43.00 38.50 11.63 42.00 223.50 216.00 -- 318.50 106.75 75.25 1214.95 7.90 2014 3.75 3.00 21.63 25.00 43.50 13.63 24.00 -- 42.00 38.50 11.63 39.00 217.50 216.00 -- 312.50 102.75 67.25 1181.64 7.89 2013 3.75 3.00 15.63 24.00 43.50 12.25 30.00 62.00 -- -- -- 43.63 216.50 222.00 406.25 -- -- 73.00 1155.51 7.97 2012 3.75 3.00 15.63 24.00 42.50 12.25 27.00 62.00 -- -- -- 45.63 215.50 221.00 401.25 -- -- 72.00 1145.51 8.05 2011 3.75 3.00 15.63 23.00 49.13 12.25 27.00 62.00 -- -- -- 45.63 211.50 206.00 398.00 -- -- 70.25 1127.14 8.09 2010 3.75 3.00 14.63 24.00 54.13 12.25 33.00 64.00 -- -- -- 49.63 207.00 206.00 413.75 -- -- 67.50 1152.64 8.52 2009 3.75 3.00 14.63 24.00 54.13 12.25 33.00 64.00 -- -- -- 50.63 201.00 206.00 412.00 -- -- 67.50 1145.89 8.74
------------- NOTES:
(1) Regular full and part-time employees only, expressed as full time equivalents.
Does not include temporary employees.
(2) As of June 30 of the fiscal year. Data provided by the Town of Cary Budget Department.
(3) Overhires are budgeted in Public Safety to accomodate staffing transitions. As of 6/30/18,
the 18 overhire positions were vacant.
(4) Engineering was eliminated and Transportation & Facilities, Water Resources and Development Support Services were created and Public Works and Utilities were separated as part of a reorganization during FY2014.
7.20
7.40
7.60
7.80
8.00
8.20
8.40
8.60
8.80
9.00
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
PE R
TH OU
SA ND
FISCAL YEAR
EMPLOYEES PER THOUSAND POPULATION
Table 25
TOWN OF CARY www.townofcary.org Page 233
OPERATING INDICATORS BY FUNCTION/PROGRAM (13)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA OPERATING INDICATORS BY FUNCTION/PROGRAM (13)
Last Ten Fiscal Years
Table 26
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program
Public Safety Police Number of Part I Crimes (1) 2,394 2,330 2,416 2,289 2,220 2,122 2,132 2,089 1,873 1,994 Number of Part II Crimes (2) 2,116 2,351 2,532 3,067 2,691 2,581 2,525 2,650 2,757 2,900 Number of Arrests (Adults-16 years of age and over) 2,057 2,025 1,725 1,870 1,744 1,707 1,537 1,462 1,225 1,533 Number of Arrests (Juvenile) 135 148 121 129 127 121 92 61 85 68
Fire Total Fire Loss in Dollars 5,016,634 1,901,248 2,768,745 1,770,873 2,928,811 3,027,046 2,094,333 2,742,675 1,948,851 6,344,669 Dollar Loss Per Capita 36.90 13.67 19.87 12.55 20.38 20.51 13.58 17.82 12.24 38.70 % Emergency Calls Responded to within 5 minutes 90.4% 91.7% 92.0% 91.9% 90.8% 90.5% 90.1% 91.0% 90.9% 90.9%
Development and Infrastructure Inspections and Permits Certificates of Occupancy (3) 2,837 2,786 2,319 3,444 3,434 3,713 3,271 3,579 3,718 3,321 Number of Inspections 66,003 71,292 63,503 58,879 68,818 73,344 73,852 75,830 79,982 82,399 Number of Permits Issued 8,049 8,287 8,099 7,515 8,018 8,339 7,743 9,192 8,749 8,769 Transportation & Facilities Streets Resurfaced (miles) 7.10 11.50 10.00 8.50 21.00 19.00 21.00 19.60 20.08 15.00 Streets Maintained (miles) (4) 437.51 427.27 432.59 444.19 453.80 458.44 466.30 470.80 475.54 485.25 Transit Annual Ridership 147,846 186,773 229,965 282,675 327,887 342,864 317,167 290,268 224,386 249,546
Parks, Recreation and Culture Athletic Program Participants (5) 16,211 27,863 56,260 59,402 74,619 63,986 61,382 59,839 67,403 73,278 Special Events 85 92 84 90 88 102 115 115 122 133 Cultural Arts Program Participants (6) 9,640 10,726 8,585 11,859 11,583 133,321 145,044 217,133 239,726 238,299 Concerts & Performances 92 81 90 107 88 120 159 217 429 432 Recreation Program Participants 57,564 58,172 59,737 62,008 72,242 75,759 75,769 76,173 80,688 80,359 Facility Rental Hours 6,907 8,111 7,942 11,275 10,085 11,966 23,233 28,961 32,076 32,271
Public Works and Utilities Refuse Collection Refuse Collected (tons per year) 31,801 30,356 30,562 31,133 31,412 32,050 33,383 34,724 35,457 35,548 Recyclables Collected (tons per year) 9,329 11,141 11,190 11,406 11,503 11,781 11,983 11,662 11,431 11,242 Yard Waste Composted (7) (7) 16,554 18,665 19,371 20,147 21,680 22,171 20,860 19,210
TOWN OF CARY www.townofcary.org Page 234
OPERATING INDICATORS BY FUNCTION/PROGRAM (13)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA OPERATING INDICATORS BY FUNCTION/PROGRAM (13)
Last Ten Fiscal Years
Table 26
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program Water Number of Utility Customers (8) 48,949 50,388 52,155 53,173 55,171 56,839 58,307 59,743 60,905 62,050 Average Daily Water Production (9) 16.31 16.30 17.28 17.31 16.24 16.84 17.51 18.21 18.69 20.91 Annual Peak Day Production (9) 25.01 28.51 27.84 29.02 28.34 24.87 26.53 29.11 24.95 34.77
Wastewater - Average Daily Flow South Cary Water Reclamation Facility (10) 4.92 5.07 4.74 5.00 5.00 5.43 5.26 5.44 5.03 4.66 North Cary Water Reclamation Facility (11) 6.25 6.09 5.60 5.70 5.85 6.49 6.55 6.54 6.38 6.36 Western Wake Water Reclamation Facility (12) -- -- -- -- -- -- 4.58 4.84 4.44 5.00
--------- NOTES:
(1) Part I Crimes: Murder, Rape Robbery, Aggravated Assault, Burlary, Larceny, Auto Theft, Arson (2) Part II Crimes: All others, including vandalism, drug violations, etc. (3) Includes residential and commercial building certificates of occupancy for new construction, alterations & additions. (4) In Fiscal Year 2010, the Town entered into a "street-swap" agreement with the North Carolina Department of Transportation,
resulting in a net reduction in the number of Town-maintained street miles. (5) Method of reporting participants was modified to capture actual participation at Cary Tennis Park and other athletic programs. In FY2014, Cary Tennis Park social group use was down. (6) In FY2014, method for tracking program participants changed. (7) Not available. (8) Includes Morrisville customers. (9) Total capacity is 40 million gallons per day. Cary owns 77% of the plant or 30.8 million gallons per day capacity. (10) 12.8 million gallons per day capacity. (11) 12.0 million gallons per day capacity. (12) Western Wake Water Reclamation Facility began operation on July 28, 2014. Total capacity of the plant is 18.0 million gallons per day.
Cary owns 66% of the plant or 11.9 million gallons per day. (13) Data provided by Town Staff.
TOWN OF CARY www.townofcary.org Page 235
CAPITAL ASSETS BY FUNCTION/PROGRAM (5)
TOWN OF CARY, NORTH CAROLINA LAST TEN FISCAL YEARS
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TOWN OF CARY, NORTH CAROLINA CAPITAL ASSETS BY FUNCTION/PROGRAM (5)
Last Ten Fiscal Years
Table 27
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Function/Program
Public Safety Police Stations 1 1 1 1 1 1 1 1 1 1 Fire Stations 7 7 7 7 7 8 8 8 9 9
Parks, Recreation and Culture # of Parks 22 22 23 27 27 27 28 32 32 34 Park Acres 2,300 2,401 2,425 2,518 2,518 2,542 2,552 2,700 2,700 2,688 # of Parks with Trail Systems 12 12 12 17 17 17 17 12 12 14 Park Trail Mileage (4) 15.0 15.0 15.0 15.0 15.0 10.9 11.0 12.0 12 12 Number of Greenways 38 38 39 36 38 42 42 44 44 45 Greenway Miles (4) 40.0 40.2 41.3 63.0 69.2 71.3 74.0 85.0 85 92 Community Centers/Facilities 15 15 15 15 15 16 16 16 16 16 Number of Ballfields 30 30 31 31 31 31 31 31 31 31 Number of Soccer Fields(1) 19 19 22 22 25 25 25 25 25 25
Utilities Water Treatment Plants 1 1 1 1 1 1 1 1 1 1 Wastewater Treatment Plants (3) 2 2 2 2 2 2 3 3 3 3 Miles of Sewer Lines(2) 798 806 818 826 832 834 847 862 913 925 Miles of Water Lines(2) 963 973 983 994 1,008 992 1,018 1,048 933 950
Public Works Refuse Collection Trucks
and Recycling Trucks 47 34 36 38 36 39 37 38 41 44
--------- NOTES:
(1) In 2005, the Town took over operation and maintenance of seven additional soccer fields. at WakeMed Soccer Park (SAS Soccer Park prior to FY2008), which is owned by Wake County.
(2) Beginning Fiscal Year 2006, includes addition of Morrisville water and sewer lines due to utility merger on 4/1/2006. Prior to FY2017, included some proposed and private lines. FY2017 and FY2018 include only existing lines and pressurized sewer mains.
(3) The Western Wake Regional Water Reclamation Facility began treating wastewater in July, 2014. (4) In FY2014, a change to the method of calculating park trail mileage and greenway mileage occurred. (5) Data provided by Town Staff.
TOWN OF CARY www.townofcary.org Page 236
INSURANCE IN FORCE (1)(2)
TOWN OF CARY, NORTH CAROLINA JULY 1, 2017 - JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA INSURANCE IN FORCE(1)(2)
July 1, 2017- June 30, 2018
Table 28
Real and Personal Property and EDP: Blanket policy - Includes buildings such as Town Hall facilities, fire stations, library, public works facilities, parks and recreation areas, etc. and personal property owned by the Town including electronic data processing equipment. $614,203,710 Equipment Breakdown 100,000,000 Earthquake 5,000,000 Flood 5,000,000 Business Income 1,000,000 Extra Expense at Specified Locations: Town Hall A 1,000,000 Town Hall B (Blanket for all Operations Center (Buildings A and B) three sites)
Inland Marine: Hwy Department Equipment 5,331,728 Miscellaneous Equipment 5,000,000 Computer Equipment 5,744,000 Communications Equipment 2,051,261 Leased/Rented Equipment 400,000 Equipment in Transit 500,000 Data, Media & Computer Programs in Transit 500,000 Extra Expense 500,000 Animal Floater 22,600
Commercial General Liability: General Liability Each Occurrence 1,000,000 General Liability Aggregate 2,000,000 Products Aggregate 2,000,000 Personal & Advertising Injury 1,000,000
Commercial Automobile Liability & Physical Damage: Liability: 1,000,000 Physical Damage: Owned Auto Physical Damage (vehicles valued at $40,001-$100,000): Comprehensive - $5,000 deductible Actual Cash Value Collision - $5,000 deductible Actual Cash Value Owned Auto Physical Damage (vehicles valued at $100,001 & up): Comprehensive - $10,000 deductible Actual Cash Value Collision - $10,000 deductible Actual Cash Value
TOWN OF CARY www.townofcary.org Page 237
INSURANCE IN FORCE (1)(2)
TOWN OF CARY, NORTH CAROLINA JULY 1, 2017 - JUNE 30, 2018
www.townofcary.org 237
TOWN OF CARY, NORTH CAROLINA INSURANCE IN FORCE(1)(2)
July 1, 2017- June 30, 2018
Table 28
Owned Auto Physical Damage (Motorcycles): Comprehensive - $1,000 deductible Actual Cash Value Collision - $1,000 deductible Actual Cash Value Catastrophic Physical Damage (vehicles valued less than $40,001): Comprehensive - $25,000 deductible Actual Cash Value Hired Auto Physical Damage: Collision - $1,000 deductible Actual Cash Value or
$80,000, whichever is less
Tort Liability: Public Officials Liability $3,000,000 Law Enforcement Liability 3,000,000 Employment Practices Liability 3,000,000
Excess Liability: General/Auto/Public Official/Employment Practices/Law Enforcement 9,000,000
Crime: Employee Theft 2,000,000 Forgery or Alteration 1,000,000 Inside - Theft of Money & Securtites 20,000 Outside the Premises 20,000 Computer Fraud 1,000,000 Social Engineering 50,000
Cyber Liability: Privacy Liability 2,000,000 Privacy Regulatory Liability 2,000,000 Security Liability 2,000,000 Media Liability 2,000,000 Breach Notification 2,000,000 Breach Mitigation 2,000,000 Crisis Management 2,000,000 Data Restoration 2,000,000 Network Extortion 2,000,000
Public Official Bonds: Chief Financial Officer 100,000 Assistant Finance Director 100,000 Wake County Tax Collector 100,000 Chatham County Revenue Collector 100,000
TOWN OF CARY www.townofcary.org Page 238
INSURANCE IN FORCE (1)(2)
TOWN OF CARY, NORTH CAROLINA JULY 1, 2017 - JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA INSURANCE IN FORCE(1)(2)
July 1, 2017- June 30, 2018
Table 28
Workers Compensation: Regular Employees Statutory Limit Police Officers/Firefighters Statutory Limit Specific Self-Insured Retention Each Accident Regular Employees $600,000 Police Officers/Firefighters 600,000 Each Employee for Disease Regular Employees 600,000 Police Officers/Firefighters 600,000 Employers Liability Specific Limit Each Accident 1,000,000 Specific Limit Each Employee for Disease 1,000,000 Aggregate Limit 1,000,000
Aggregate Excess Insurance Loss Fund Percentage for the Liability Period 150% Minimum Loss Fund for the Liability Period 3,677,913 Maximum Limit of Indemnity of the CORPORATION for the Liability Period 1,000,000
------------- NOTES:
(1) Represents insurance in force on July 1, 2016. Insurance was renewed on July 1, 2017 for the fiscal year ended June 30, 2018. (2) Data provided by Town Staff.
TOWN OF CARY www.townofcary.org Page 239
TOP TEN UTILITY CUSTOMERS (1)
TOWN OF CARY, NORTH CAROLINA FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA TOP TEN UTILITY CUSTOMERS (1) (2)
For the Year Ended June 30, 2018
Table 29
Total Sales % of Total Customer Industry Revenue Sales Revenue
Wake County Schools Public Schools $1,013,959 1.27 % RDU Airport Airport 954,311 1.19 Biogen Biotechnology 952,125 1.19 Fujifilm Diosynth Biotechnology 496,462 0.62 SAS Software 437,387 0.55 SEMF Multi-Family Residential 432,963 0.54 WakeMed Cary Hospital Hospital 416,098 0.52 Cisco Systems Computer Hardware 316,253 0.40 SVT Ventures LP Real Estate Investment 312,933 0.39 MECO Utilities Utility Contractors 276,647 0.35
$5,609,138 7.02 %
--------- NOTES:
(1) Data provided by Town Staff.
TOWN OF CARY www.townofcary.org Page 240
UTILITY RATE INFORMATION TOWN OF CARY, NORTH CAROLINA FROM FISCAL YEAR APPROVED OPERATING BUDGET ORDINANCE
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TOWN OF CARY, NORTH CAROLINA UTILITY RATE INFORMATION From Fiscal Year Approved Operating Budget Ordinance
Table 30
2013 2014 2015 2016 2017 2018
WATER RATES Base Charges (flat monthly fee) Inside Corporate Limits
5/8" & 3/4" meters $3.07 3.07 3.07 3.07 3.07 3.16 1" meters 6.61 6.61 6.61 6.61 3.07 3.16 1 1/2" meters 21.71 21.71 21.71 21.71 21.71 22.36 2" meters 26.41 26.41 26.41 26.41 26.41 27.20 3" meters 71.08 71.08 71.08 71.08 71.08 73.21 4" meters 107.70 107.70 107.70 107.70 107.70 110.93 6" meters 132.94 132.94 132.94 132.94 132.94 136.93
Outside Corporate Limits 5/8" & 3/4" meters 9.21 9.21 9.21 9.21 9.21 9.48 1" meters 19.83 19.83 19.83 19.83 9.21 9.48 1 1/2" meters 65.13 65.13 65.13 65.13 65.13 67.08 2" meters 79.23 79.23 79.23 79.23 79.23 81.60 3" meters 213.24 213.24 213.24 213.24 213.24 219.63 4" meters 323.10 323.10 323.10 323.10 323.10 332.79 6" meters 398.82 398.82 398.82 398.82 398.82 410.79
Single Family/Residential Inside Corporate Limits
Tier 1 (usage 0 - 5,000 gallons) 3.60 3.60 4.09 4.38 4.56 4.70
Tier 2 (usage 5,001 - 8,000 gallons) 4.08 4.08 4.64 4.90 5.11 5.26
Tier 3 (usage 8,001 - 23,000 gallons)
or up to water budget amount 5.79 5.79 5.99 6.20 6.46 6.65
Tier 4 (usage > 23,000 gallons)
or over to water budget amount 11.29 11.29 11.49 11.70 12.19 12.56
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UTILITY RATE INFORMATION TOWN OF CARY, NORTH CAROLINA FROM FISCAL YEAR APPROVED OPERATING BUDGET ORDINANCE
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TOWN OF CARY, NORTH CAROLINA UTILITY RATE INFORMATION From Fiscal Year Approved Operating Budget Ordinance
Table 30
2013 2014 2015 2016 2017 2018
Outside Corporate Limits
Tier 5 (usage 0 - 5,000 gallons) $10.80 10.80 12.27 13.14 13.69 14.10
Tier 6 (usage 5,001 - 8,000 gallons) 12.24 12.24 13.92 14.70 15.32 15.78
Tier 7 (usage 8,001 - 23,000 gallons)
or up to water budget amount 17.37 17.37 17.97 18.60 19.38 19.95
Tier 8 (usage > 23,000 gallons)
or over to water budget amount 33.87 33.87 34.47 35.10 36.57 37.68
Government Rates Government Water use shall be billed at the same rate as Tier 1 Single Family Residential. Government irrigation use shall be
billed at the same rate as non-residential Tier 1. Government sewer service shall be billed at the same rate for all customer types.
Multi-Family/Non-Residential Inside Corporate Limits
Tier 1 (charge per 1,000 gallons) 4.08 4.08 4.64 4.90 5.11 5.26
Outside Corporate Limits
Tier 3 (charge per 1,000 gallons) 12.24 12.24 13.92 14.70 15.32 15.78
IRRIGATION RATES Base Charges (flat monthly fee) Inside Corporate Limits 5/8" & 3/4" meters 3.07 3.07 3.07 3.07 3.07 3.16 1" meters 6.61 6.61 6.61 6.61 3.07 3.16 1 1/2" meters 21.71 21.71 21.71 21.71 21.71 22.36 2" meters 26.41 26.41 26.41 26.41 26.41 27.20 3" meters 71.08 71.08 71.08 71.08 71.08 73.21 4" meters 107.70 107.70 107.70 107.70 107.70 110.93 6" meters 132.94 132.94 132.94 132.94 132.94 136.93
TOWN OF CARY www.townofcary.org Page 242
UTILITY RATE INFORMATION TOWN OF CARY, NORTH CAROLINA FROM FISCAL YEAR APPROVED OPERATING BUDGET ORDINANCE
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TOWN OF CARY, NORTH CAROLINA UTILITY RATE INFORMATION From Fiscal Year Approved Operating Budget Ordinance
Table 30
2013 2014 2015 2016 2017 2018
Outside Corporate Limits 5/8" & 3/4" meters $9.21 9.21 9.21 9.21 9.21 9.48 1" meters 19.83 19.83 19.83 19.83 9.21 9.48 1 1/2" meters 65.13 65.13 65.13 65.13 65.13 67.08 2" meters 79.23 79.23 79.23 79.23 79.23 81.60 3" meters 213.24 213.24 213.24 213.24 213.24 219.63 4" meters 323.10 323.10 323.10 323.10 323.10 332.79 6" meters 398.82 398.82 398.82 398.82 398.82 410.79
Single Family/Residential Inside Corporate Limits
Tier 1 (usage 0 - 15,000 gallons)
or up to water budget amount 5.79 5.79 5.99 6.20 6.46 6.65
Tier 2 (usage > 15,000 gallons)
or over to water budget amount 11.29 11.29 11.49 11.70 12.19 12.56
Outside Corporate Limits
Tier 3 (usage 0 - 15,000 gallons)
or up to water budget amount 17.37 17.37 17.97 18.60 19.38 19.95
Tier 4 (usage > 15,000 gallons)
or over to water budget amount 33.87 33.87 34.47 35.10 36.57 37.68
Multi-Family/Non-Residential Inside Corporate Limits
Tier 1 (usage 0 - Water Budget Amount) 6.38 6.38 6.38 6.38 6.46 6.65
Tier 2 (usage > than Water Budget Amount) 11.88 11.88 11.88 11.88 12.19 12.56
Outside Corporate Limits
Tier 3 (usage 0 - Water Budget Amount) 19.14 19.14 19.14 19.14 19.38 19.95
Tier 4 (usage > than Water Budget Amount) 35.64 35.64 35.64 35.64 36.57 37.68
Reclaimed Water Rate 3.60 3.60 3.60 3.60 3.75 3.86
TOWN OF CARY www.townofcary.org Page 243
UTILITY RATE INFORMATION TOWN OF CARY, NORTH CAROLINA FROM FISCAL YEAR APPROVED OPERATING BUDGET ORDINANCE
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TOWN OF CARY, NORTH CAROLINA UTILITY RATE INFORMATION From Fiscal Year Approved Operating Budget Ordinance
Table 30
2013 2014 2015 2016 2017 2018
SEWER RATES Base Charges (flat monthly fee) Inside Corporate Limits 5/8" & 3/4" meters $3.07 3.07 3.07 3.07 3.07 3.16 1" meters 6.61 6.61 6.61 6.61 3.07 3.16 1 1/2" meters 21.71 21.71 21.71 21.71 21.71 22.36 2" meters 26.41 26.41 26.41 26.41 26.41 27.20 3" meters 71.08 71.08 71.08 71.08 71.08 73.21 4" meters 107.70 107.70 107.70 107.70 107.70 110.93 6" meters 132.94 132.94 132.94 132.94 132.94 136.93
Outside Corporate Limits 5/8" & 3/4" meters 9.21 9.21 9.21 9.21 9.21 9.48 1" meters 19.83 19.83 19.83 19.83 9.21 9.48 1 1/2" meters 65.13 65.13 65.13 65.13 65.13 67.08 2" meters 79.23 79.23 79.23 79.23 79.23 81.60 3" meters 213.24 213.24 213.24 213.24 213.24 219.63 4" meters 323.10 323.10 323.10 323.10 323.10 332.79 6" meters 398.82 398.82 398.82 398.82 398.82 410.79
Single Family/Residential Inside Corporate Limits
Tier 1: (charge per 1,000 gallons) 8.47 9.10 9.10 9.36 9.75 10.04
Outside Corporate Limits
Tier 2: (charge per 1,000 gallons) 25.41 27.30 27.30 28.08 29.26 30.12
NOTES:
(1) With the exception of base rates, all rates are per 1,000 gallons of usage
(2) The Town of Morrisville's water and sewer system officially merged with the Town of Cary system effective April 1, 2006. As a part of the merger
agreement, merger related costs were recovered through rate differentials from FY2007 through FY2012. Morrisville customers began paying the
same rates as Cary customers in FY2013. Historical comparisons start at FY2013, with a 10 year history eventually being presented.
TOWN OF CARY www.townofcary.org Page 244
DEVELOPMENT FEE REVENUE TOWN OF CARY, NORTH CAROLINA FROM FISCAL YEAR APPROVED OPERATING BUDGET ORDINANCE
244
TOWN OF CARY, NORTH CAROLINA DEVELOPMENT FEE REVENUE Last Ten Fiscal Years
Table 31
Fiscal Year Sewer Development
Fees Water Development
Fees Reclaimed
Development Fees Transportation
Development Fees Payment in Lieu -
Streets Payment in Lieu -
Parks
Total Development Fee
Revenue 2018 $6,702,037 4,217,596 382,864 2,364,445 1,795,456 4,623,330 20,085,728 2017 7,553,845 5,068,852 303,871 1,838,189 760,155 4,533,630 20,058,542 2016 6,155,747 3,906,259 271,223 1,620,360 884,693 5,004,277 17,842,559 2015 6,371,970 4,356,030 21,950 911,166 1,386,409 3,059,158 16,106,682 2014 8,584,202 5,382,286 36,225 1,485,900 647,765 2,577,810 18,714,188 2013 7,864,151 5,153,117 -- 1,290,667 509,449 1,160,443 15,977,828 2012 6,785,551 4,761,119 11,746 638,042 388,720 1,270,088 13,855,267 2011 5,092,416 3,790,303 16,500 409,196 177,144 499,585 9,985,144 2010 6,208,599 4,355,742 -- 453,708 271,302 330,296 11,619,647 2009 5,653,691 4,978,007 -- 1,077,931 972,889 283,513 12,966,032
$0
$5
$10
$15
$20
$25
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
M ill
ion s
DEVELOPMENT FEE REVENUE BY FISCAL YEAR
Sewer Development Fees Water Development Fees Reclaimed Development Fees
Transportation Development Fees Payment in Lieu - Streets Payment in Lieu - Parks
COMPLIANCE SECTION
FEDERAL & STATE GRANTS AND AWARDS COMPLIANCE
The Town receives various Federal and State grants and awards that are examined by the external auditors through the “single-
audit” process, which tests the overall compliance and internal control related to these awards.
Included is a Schedule of Awards, related notes, auditors’ opinions, Schedule of Findings and Questioned Costs, Corrective Action
Plan, and a Summary Schedule of Prior Year Audit Findings.
TOWN OF CARY www.townofcary.org Page 245
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For the Year Ended June 30, 2018
Federal State/ Pass
Through Federal
Expenditures Pass-through Grantor/Pass-Through CFDA Grantor's (Direct & Pass- State to Local Grantor/Program Titles Number Number Through) Expenditures Subrecipents Expenditures
FEDERAL GRANTS: Cash Programs:
U.S. Department of Housing and Urban Development Passed through the County of Wake, North Carolina
Community Development Block Grant 14.218 $947,089 -- 867,631 --
U.S. Department of Justice Criminal Division
Equitable Sharing Program 16.922 224,450 -- -- --
U.S. Department of Transportation Passed through North Carolina Department of Transportation: Highway Planning and Construction Cluster:
SAFE TEA-LU CMAQ Funds : Crabtree Creek Greenway 20.205 C-5163 2,693,846 -- -- 673,461 Cary Parkway and High House Intersection 20.205 C-5165 741,801 -- -- 185,450 White Oak Greenway 20.205 U-5604IB 169,568 -- -- 207,250
Total SAFE TEA-LU CMAQ Funds 3,605,215 -- -- 1,066,161
STBDGA Funds: Reedy Creek Road Widening 20.205 U-5501A 6,736 -- -- 1,684
Total STBDGA Funds 6,736 -- -- 1,684
STP-DA Funds: Green Level Road West Road 20.205 U-5500B 1,698,027 -- -- 424,506 Reedy Creek Road Widening 20.205 U-5501 45,592 -- -- 12,934 Morrisville Parkway Extension 20.205 U-5315 60,765 -- -- 12,027 Old Reedy Creek Trailhead 20.205 EL-5100GG 23,060 -- -- 15,396 White Oak Greenway 20.205 U-5530IB 1,811,074 -- -- 1,811,074
Total STP-DA Funds 3,638,518 -- -- 2,275,937 Total Highway Planning and Construction Cluster 7,250,469 -- -- 3,343,782
TOWN OF CARY www.townofcary.org Page 246
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For the Year Ended June 30, 2018
Federal State/ Pass
Through Federal
Expenditures Pass-through Grantor/Pass-Through CFDA Grantor's (Direct & Pass- State to Local Grantor/Program Titles Number Number Through) Expenditures Subrecipents Expenditures
Federal Transit Cluster: Section 5307
2017 - 2018 20.507 NC-95-X091/ NC- 2016-011-0100 $1,514,182 -- -- 2,459,342
Total Federal Transit Cluster: 1,514,182 -- -- 2,459,342
Total U.S. Department of Transportation 8,764,651 -- -- 5,803,124
U.S. National Endowment for the Arts Passed through North Carolina Department of
Cultural Resources North Carolina Arts Council Program Grant 45.025 IN18-0022 19,250 -- -- --
Executive Office of the President Office of National Drug Control and Policy
Passed through City of Durham High Intensity Drug Trafficing Area Grant 2016 95.001 16.G16GA0004A 3,009 -- -- --
Executive Office of the President Office of National Drug Control and Policy
Passed through City of Durham High Intensity Drug Trafficing Area Grant 2017 95.001 G17GA0004A 15,783 -- -- --
TOTAL FEDERAL FINANCIAL ASSISTANCE $9,974,232 -- 867,631 5,803,124
STATE FINANCIAL ASSISTANCE:
North Carolina Department of Commerce - The One North Carolina Fund: NC One Grant - HCL America, Inc 2013-10746 -- 21,000 -- 21,000
North Carolina Department of Health and Human Services Division of Aging and Adult Services
Senior Center Development -- 10,939 -- 3,646
TOWN OF CARY www.townofcary.org Page 247
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
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TOWN OF CARY, NORTH CAROLINA SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For the Year Ended June 30, 2018
Federal State/ Pass
Through Federal
Expenditures Pass-through Grantor/Pass-Through CFDA Grantor's (Direct & Pass- State to Local Grantor/Program Titles Number Number Through) Expenditures Subrecipents Expenditures
North Carolina Department of Transportation Division of highways
Non-State System Street-Aid Allocation Fund (Powell Bill) $ -- 5,735,838 -- --
Public Transportation Division DOT-9/ WBS 36234.34.7.1 -- 217,487 -- 3,271,409
Total North Carolina Department of Transportation -- 5,953,325 -- 3,271,409
TOTAL STATE FINANCIAL ASSISTANCE -- 5,985,264 -- 3,296,055
TOTAL FINANCIAL ASSISTANCE $9,974,232.32 5,985,264 867,631 9,099,179
State Maintenance Assistance Program - C-Tran Transit Operations
DOT-4/ WBS 32570
TOWN OF CARY www.townofcary.org Page 248
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
TOWN OF CARY, NORTH CAROLINA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS For the Year Ended June 30, 2018
1. General
The accompanying Schedule of Expenditures of Federal and State Awards (the Schedule) presents the activity of all federal and state financial award programs of the Town of Cary, North Carolina. All federal and state financial awards received directly from federal and state agencies as well as federal financial awards passed through other government agencies are included on the schedule. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and the State Single Audit Implementation Act. The Schedule presents only a selected portion of the operations of the Town, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Town of Cary.
2. Basis of Accounting
The accompanying Schedule of Expenditures of Federal and State Awards is presented using the modified accrual basis of accounting, which is described in the notes to the Town's basic financial statements. Expenditures are recognized following the cost principles contained in the Uniform Guidance and the State Single Audit Implementation Act, wherein certain types of expenditures are not allowable or limited as to reimbursement. The Town of Cary has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
3. Relationship to Basic Financial Statements
a) State award revenues for Powell Bill of $3.8 million are reported in the Town's basic financial statements in the Capital Project Funds. At June 30, 2018, $7.8 million of unexpended Powell Bill Funds is included in the Capital Project Fund’s fund balance as Restricted for Street Projects. The activity in this account for the year ended June 30, 2018 is as follows:
Balance of unexpended Powell Bill Funds at June 30, 2017 $9,654,645
Revenues received 3,849,600
Interest earned on unexpended Powell Bill funds 70,000
Expenditures (including adjustments) 5,735,838
Balance of unexpended Powell Bill funds at June 30, 2018 $7,838,407
4. Prior Year Expenditures
Where allowed by grant agreement, prior year expenditures that have not been previously tested may be included in the Schedule of Awards at June 30, 2018. Generally this occurs when grants are awarded after the related project or program has started incurring expenses and retroactive reimbursement is allowed per the funding agreement or when corrections are made due to previous year(s) omissions.
www.townofcary.org 248
Report of Independent Auditor on Internal Control over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
The Honorable Mayor and Members of the Town Council Town of Cary, North Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Cary, North Carolina (the “Town”) as of and for the year ended June 30, 2018, and the related notes to the financial statements, which collectively comprises the Town’s basic financial statements, and have issued our report thereon dated October 31, 2018. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Town's internal control over financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the Town’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in the internal control over financial reporting that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters As part of obtaining reasonable assurance about whether the Town's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.
Raleigh, North Carolina October 31, 2018
Report of Independent Auditor on Compliance for Each Major Federal Program on Internal Control over Compliance in Accordance with the OMB Uniform
Guidance and the State Single Audit Implementation Act The Honorable Mayor and Members of the Town Council Town of Cary, North Carolina Report on Compliance for Each Major Federal Program We have audited the Town of Cary, North Carolina’s (the “Town”), compliance with the types of compliance requirements described in the OMB Compliance Supplement and the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission, that could have a direct and material effect on each of the Town’s major federal programs for the year ended June 30, 2018. The Town’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), and the State Single Audit Implementation Act. Those standards, the Uniform Guidance, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on the Town’s compliance. Opinion on Each Major Federal Program In our opinion, the Town complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2018.
Report on Internal Control over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of requirements referred to above. In planning and performing our audit, we considered the Town’s internal control over compliance with the types of requirements that could have a direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Raleigh, North Carolina October 31, 2018
Report of Independent Auditor on Compliance with Requirements Applicable to Each Major State Program and Internal Control over Compliance in Accordance with the Uniform Guidance and the State Single Audit Implementation Act
The Honorable Mayor and Members of the Town Council Town of Cary, North Carolina Report on Compliance for Each Major State Program We have audited the Town of Cary, North Carolina (the “Town”), compliance with the types of compliance requirements described in the Audit Manual for Governmental Auditors in North Carolina, issued by the Local Government Commission that could have a direct and material effect on each of its major State programs for the year ended June 30, 2018. The Town’s major state programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major state programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for each of the Town’s major state programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and applicable sections of Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”), as described in the Audit Manual for Governmental Auditors in North Carolina, and the State Single Audit Implementation Act. Those standards, the Uniform Guidance, and the State Single Audit Implementation Act require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major state program occurred. An audit includes examining, on a test basis, evidence about the Town’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major state program. However, our audit does not provide a legal determination of the Town’s compliance. Opinion on Each Major State Program In our opinion, the Town complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major state programs for the year ended June 30, 2018.
Report on Internal Control over Compliance Management of the Town is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit, we considered the Town’s internal control over compliance with the types of requirements that could have a direct and material effect on a major state program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major state program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Town’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a State program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a State program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a state program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Purpose of this Report The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Raleigh, North Carolina October 31, 2018
TOWN OF CARY, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED JUNE 30, 2018
I – Summary of Auditor’s Results Financial Statements Type of auditor’s report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? _______ yes X no
Significant deficiency(ies) identified that are not considered to be material weaknesses? _______ yes X none reported
Noncompliance material to financial statements noted? _______ yes X no
Federal Awards Internal control over major federal programs:
Material weakness(es) identified? _______ yes X no
Significant deficiency(ies) identified that are not considered to be material weaknesses? _______ yes X none reported
Noncompliance material to federal awards? _______ yes X no
Type of auditor’s report issued on compliance for major federal programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516(a)? _______ yes X no
Identification of major federal programs:
CFDA Numbers Names of Federal Program or Cluster 20.205 U.S. Department of Transportation Highway Planning and Construction Cluster
TOWN OF CARY, NORTH CAROLINA SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2018
I – Summary of Auditor’s Results (continued) Dollar threshold used to distinguish between Type A and Type B Programs: $ 750,000
Auditee qualified as low-risk auditee? X yes no
State Awards Internal control over major state programs:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified that are not considered to be material weaknesses? yes X none reported
Noncompliance material to state awards? yes X no
Type of auditor’s report issued on compliance for major state programs: Unmodified
Any audit findings disclosed that are required to be reported in accordance with the Audit Manual for Governmental Auditors in North Carolina? yes X no
Identification of major state programs:
Names of State Program or Cluster Non-State System Street-Aid Allocation Fund (Powell Bill)
TOWN OF CARY, NORTH CAROLINA SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS YEAR ENDED JUNE 30, 2018
II – Financial Statement Findings None. III – Federal Award Findings and Questioned Costs None. IV – State Award Findings and Questioned Costs None.
COVENANT COMPLIANCE This section contains the reports required for secondary disclosure related to the revenue bond covenants that the Town entered
into with the Utility System Enterprise Revenue Bonds.
Included are coverage calculations and secondary disclosure information on utility customers, operating results and rates.
Report of Independent Auditor on Revenue Bond Covenant
The Honorable Mayor and Members of the Town Council Town of Cary, North Carolina Report on the Schedule We have audited the accompanying Revenue Bond Statement of Revenues, Expenses, Debt Service and Debt Service Coverage (the “Schedule”) of the Town of Cary, North Carolina (the “Town”), as of and for the year ended June 30, 2018 as defined in the official statement and amendment for the Combined Enterprise System Revenue Bonds, Series 2013, Series 2015, Series 2017, and Series 2017B (the “Bonds”). Management’s Responsibility for the Schedule Management is responsible for the preparation and fair presentation of this schedule 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 the schedule that is free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the schedule based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the schedule is free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the schedule. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the schedule, 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 schedule 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 schedule.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the Schedule referred to above presents fairly, in all material respects, as described in the Bonds referred to in the first paragraph, of the Town as of and for the year ended June 30, 2018, in accordance with accounting principles generally accepted in the United States of America. Other Matter We have audited, 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, the financial statements of the Town as of and for the year ended June 30, 2018, and our report thereon dated October 31, 2018, expressed as an unmodified opinion on those financial statements. Restricted Use The purpose of this report is solely to describe the scope of our testing of compliance and the results of that testing. This communication is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s compliance. Accordingly, this communication is not suitable for any other purpose.
Raleigh, North Carolina October 31, 2018
TOWN OF CARY www.townofcary.org Page 263
REVENUE BOND STATEMENT OF REVENUES, EXPENSES, DEBT SERVICE, AND DEBT SERVICE COVERAGE TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
www.townofcary.org 263
TOWN OF CARY, NORTH CAROLINA REVENUE BOND STATEMENT OF REVENUES, EXPENSES, DEBT SERVICE, AND DEBT SERVICE COVERAGE For the Year Ended June 30, 2018
Operating Revenues: Charges for Services $80,045,254 Other Operating Revenues 1,991,851
Total Operating Revenues 82,037,105
Operations and Maintenance Expenses (45,065,665)
Operating Income Before Depreciation & Amortization 36,971,440
Less: Depreciation and Amortization Expense (18,120,833)
OPERATING INCOME 18,850,607
Non-Operating Revenues 14,028,840 Non-Operating Expenses (11,995,565)
NET INCOME $20,883,882
Determination of Income Available for Debt Service
Net Income $20,883,882 Adjustments: Depreciation and Amortization Expense 18,120,833 Water and Sewer Development Fees (11,517,606) Reimbursements (93,645) Sale of Capital Assets (95,201) Bond Interest Expense 9,975,323 Debt Issuance Expense 784,680 Bond Refunding Loss 401,085 Payment to General Fund for Open Space 822,264 Administrative Costs Paid to the General Fund 3,572,336
Income Available for Debt Service 42,853,951
15% of Unrestricted Net Position 36,755,220
Income Available for Debt Service Plus 15% of Unrestricted Net Position $79,609,171
TOWN OF CARY www.townofcary.org Page 264
REVENUE BOND STATEMENT OF REVENUES, EXPENSES, DEBT SERVICE, AND DEBT SERVICE COVERAGE TOWN OF CARY, NORTH CAROLINA
FOR THE YEAR ENDED JUNE 30, 2018
www.townofcary.org 264
TOWN OF CARY, NORTH CAROLINA REVENUE BOND STATEMENT OF REVENUES, EXPENSES, DEBT SERVICE, AND DEBT SERVICE COVERAGE For the Year Ended June 30, 2018
Debt Service Requirements and Coverage
Parity Debt Service: Series 2007 Revenue Bonds $1,703,965 Series 2013 Revenue Bonds 3,490,403 Series 2015 Revenue Bonds 2,979,388 Series 2017 Revenue Bonds 2,069,156 Series 2017B Revenue Refunding Bonds 1,664,206
$11,907,118
Debt Service Coverage - Parity Indebtedness 6.686 Revenue Bond Covenant Requirement 1.200
System GO. Debt Service: 2009 Public Improvement Bonds $1,568,197 2009 Refunding Bonds 3,905,200 2010A Refunding Bonds 230,400 2014 Public Improvement Bonds 2,629,725 2016A Refunding Bonds 106,964 2017B Refunding Bonds 373,504
$8,813,990
Subordinated Debt Service 3,792,947
Sum of Parity, Subordinated and GO Debt Service $24,514,055
Debt Service Coverage - Sum of Parity, System GO and Subordinated Indebtedness 1.748
Revenue Bond Covenant Requirement 1.000
WWW.TOWNOFCARY.ORG
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