Town of Orchard Park, New York 2010 Audit Town Board Work Session - - PowerPoint PPT Presentation

Town of Orchard Park,

New York

2010 Audit Town Board Work Session May 4, 2011

Town of Orchard Park

Products of Our Audit:

– Auditor Communication Letter – Comprehensive Annual Financial Report – Departmental Audit Reports

• Receiver of Taxes
• Town Clerk
• Town Justices

– Management Letter

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Town of Orchard Park

Auditor Communications

• Our responsibility under GAAS
• Significant accounting policies
• Management judgments and accounting estimates
• Alternative accounting treatments
• Disagreements with management
• Difficulties encountered in performing the audit
• Audit adjustments

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Town of Orchard Park

General Fund - Fund Balance

Fund balance consists of three parts:

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2010 2009 Reserved 955,531 $ 905,155 $ Designated 2,688,553 2,364,313 Unreserved, undesignated 3,928,222 4,160,988 Total fund balance 7,572,306 $ 7,430,456 $

Town of Orchard Park

General Fund - Fund Balance Reserves

• Reserves of fund balance represent funds that have been legally segregated

and can only be used for a specified purpose.

• General Fund reserves at 12/31/10 are:

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Encumbrances 7,436 $ Cemetery 21,822 D.A.R.E. program 20,590 Senior Center 1,272 Tax stabilization 655,900 Prepaid expenditures 248,511 Total reserved fund balance 955,531 $

Town of Orchard Park

General Fund - Fund Balance Designations

• Designations represent management’s intent to use a part of fund

balance in some manner.

• General Fund designations at 12/31/10 include:

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Capital improvements 750,000 $ Subsequent year's expenditures 800,000 Insurance deductibles 401,833 Workers' compensation 729,815 Town historian 6,905 Total designated fund balance 2,688,553 $

Town of Orchard Park

General Fund - Fund Balance Unreserved

• Unreserved fund balance represents funds that may be

used for valid Town purposes at the Board’s discretion and in accordance with Town Law.

• The unreserved, undesignated fund balance at 12/31/10

is $3,928,222, which represents 36.3% of 2011 budgeted appropriations.

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Town of Orchard Park

General Fund - Unreserved, Undesignated Fund Balance

$2,701,037 $3,295,236 $3,708,394 $3,073,643 $2,431,819 $2,143,552 $2,590,769 $3,231,540 $4,160,988 $3,928,222

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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Town of Orchard Park

General Fund – Budget History

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Appropriations Estimated Revenues 8

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Town of Orchard Park

General Fund – Actual Revenues and Expenditures

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 2002 2003 2004 2005 2006 2007 2008 2009 2010

Actual Expenditures* Actual Revenues

* All transfers to the Capital Projects Fund were excluded from the total expenditures each year.

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Town of Orchard Park

Cost Drivers - Health Insurance (All Funds)

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 $1,800,000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Annual Cost

Inverse of national trends

The Town reduced the cost of health insurance from 2006 to 2009. In 2010 the cost increased by 2.9%. 10

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Town of Orchard Park

Cost Drivers - Retirement (All Funds)

$0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000 $1,000,000 $1,100,000 $1,200,000 $1,300,000 $1,400,000 $1,500,000 $1,600,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

In the early 2000’s rates were very low. However, market losses and increased retirement costs have caused required contributions to increase significantly for 2010. The rates for 2011 have also increased significantly.

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Town of Orchard Park

Source of Funds - General Fund

Real property taxes 46% Other revenue 2% Non- property taxes 35% Charges and fees 6% Interest income 2% State aid 9% Real property taxes 47% Other revenue 2% Non- property taxes 29% Charges and fees 4% Interest income 4% State aid 14%

2010 Revenues 2000 Revenues

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Town of Orchard Park

General Fund – Revenue Variances

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Total actual revenues exceeded final budget by $324,365 during 2010. 2009 Revenue Budget Actual Actual Real property taxes 4,677,242 $ 4,675,890 $ 4,565,531 $ Sales tax 3,240,000 3,335,415 3,277,059 Parks & recreation fees 280,000 313,451 278,508 Interest earnings 25,000 34,791 106,129 Fines & forfeited bail 320,000 268,819 376,714 Refunds of prior years exp. 10,000 16,489 173,987

• Rec. gifts & donations

20,000 60,557 57,521 Mortgage tax 700,000 702,961 762,628 2010

Town of Orchard Park

Historical Perspective – Sales Tax

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2007 included a new supplemental allocation (based on the increase in the sales tax rate which occurred in 2006).

General Highway Part Town Total 2010 3,335,415 $ 110,000 $ 283,709 $ 3,729,124 $ 2009 3,277,059 150,000 252,973 3,680,032 2008 3,383,847 230,000 219,505 3,833,352 2007 3,260,188 260,557 284,347 3,805,092 2006 2,638,187 240,557 283,075 3,161,819 2005 2,909,484 50,000 278,661 3,238,145 2004 2,688,237

• 235,742

2,923,979 2003 2,690,844

• 218,999

2,909,843 2002 2,501,059

• 179,723

2,680,782 2001 2,440,128

• 174,711

2,614,839 Fund

Town of Orchard Park

Use of Funds - General Fund

General govt. 28% Public safety 33% Transport ation 2% Culture & rec. 12% Transfers 18% Employee benefits 15% Other 1%

2010 Expenditures 2000 Expenditures

General govt. 26% Public safety 33% Transport ation 1% Culture & rec. 13% Transfers

• ut

1% Employe e benefits 28% Other 1%

Town of Orchard Park

General Fund – Expenditure Variances

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2009 Expenditure Budget Actual Actual Salary of tax receiver 42,707 $

• $

26,021 $ Salary - assistant engineer/inspector 468,195 338,240 389,523 Unallocated insurance 310,000 161,934 196,668 Salaries of police 2,674,324 2,781,662 2,668,427 Recreation equipment 78,000 72,495

• State retirement

419,000 260,071 162,275 Police retirement 551,000 619,086 346,436 Medical insurance 1,202,700 1,116,782 1,047,690 2010

Total actual expenditures were under the final adjusted budget by $521,978 during 2010.

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Town of Orchard Park

Tax Rate Per $1,000 of Assessed Valuation General Fund - 2002 to 2011

Town outside village tax rates have increased from $2.56 to $2.97 in the ten year period from 2002 to 2011. However, village residents experienced an increase from $4.58 to $5.74 over ten years.

$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Rate per $1,000 of Assessed Valuation

Town Outside Village Residents Village Residents

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Town of Orchard Park

Highway Fund - Unreserved, Undesignated Fund Balance

The unreserved, undesignated fund balance represents approximately 25% of 2011 budgetary appropriations.

$903,605 $711,974 $581,943 $454,840 $495,511 $786,900 $793,543 $841,957 $986,874 $974,467 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

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Town of Orchard Park

Source of Funds - Highway Fund

Real property taxes 90% Sales taxes 4% Other revenue 1% Charges and fees 2% Interest income 0% State aid 3%

The Highway Fund is primarily supported by real property taxes. An allocation of sales tax, interest income, state aid and charges for services to Erie County make up the balance of revenues.

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General Government 1% Transportation 70% Transfer to Capital 0% Employee Benefits 19% Debt Sevice 10%

Town of Orchard Park

Use of Funds - Highway Fund

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Town of Orchard Park

Tax Rate Per $1,000 of Assessed Valuation - Highway Fund - 2002 to 2011

Highway tax rates increased in each of the past 8 years (3.3% in 2011) after having remained virtually unchanged over the prior ten year period.

$0.00 $1.00 $2.00 $3.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Rate per $1,000 of Assessed Valuation

Outside Village Residents Village Residents

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Town of Orchard Park

Special District Funds - Unreserved, Undesignated Fund Balance

$0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Sewer Water Refuse and Garbage Lighting

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Town of Orchard Park

Use of Funds - Special Districts

Lighting District 8% Refuse and Garbage 45% Sewer Districts 20% Water Districts 27%

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Town of Orchard Park

Total Sewer District Tax Levy - All Districts Combined

Over the past 10 years, the assessable tax bases have generally increased causing the actual tax rates to generally be lower. Tax rates vary by individual district and changes in rates are determined on a district by district basis. 604,438 616,967 638,389 639,144 660,354 648,745 656,913 699,757 718,801 750,188 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 $900,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total Levy -All Sewer Districts

Total Tax Levy 24

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Town of Orchard Park

Total Water District Tax Levy - All Districts Combined

Water District levies increased from 2001 to 2007 to cover certain costs which were previously paid for by water charges. Assessable tax bases have also increased over the period displayed above. Tax rates vary by individual district and changes in rates are determined on a district by district basis.

752,361 872,225 825,230 927,209 945,883 973,671 962,097 906,471 919,742 893,028

$0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Total Tax Levy - All Water Districts

Total Tax Levy

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Town of Orchard Park

Refuse & Garbage Charges

153.14 174.93 176.64 177.19 176.61 178.13 178.27 182.51 183.93 187.78 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 $200

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Yearly charge Refuse Charge Per …

In 1995 the rate per unit was $255.04, at which point the Town was able to bid the contract and significantly reduce the cost. The current waste disposal contract contains an annual inflationary increase.

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Town of Orchard Park

Capital Projects – Major 2010 Projects

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Total capital project expenditures for 2010 were $1,318,231, with the most significant projects being:

Project Expenditures Ellis Road Drainage $ 573,487 Municipal Center Roof & Renovations 334,767 Composting Equipment Purchases 202,050

Town of Orchard Park

Other Fund Balances

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Description Balance at 12/31/10 P.I.P. Funds $ 592,128 Park Land Development 168,475 Ecology 95,421

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Town of Orchard Park

Total Bonded Debt

At December 31, 2010, the Town also had $5,030,000 of bond anticipation notes outstanding. The Town is using 6.88% of its constitution debt margin.

$0 $2,000,000 $4,000,000 $6,000,000 $8,000,000 $10,000,000 $12,000,000 $14,000,000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Total Bonded Debt General Fund Portion Special District Portion Highway Fund

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Town of Orchard Park

WNY Town 2011 Tax Rate Comparison

Warning – not all services provided are comparable and, therefore, rates are not necessarily comparable.

Equalization Equalized General Highway Police Total Rate Rate Amherst 3.14438 1.02390

• 4.16827

100.0% 4.1683 $ Aurora 5.26982 1.52487

• 6.79469

42.0% 2.8538 Cheektowaga 14.27943 1.50760

• 15.78703

62.0% 9.7880 Clarence 1.06411 0.98711

• 2.05122

100.0% 2.0512 Eden 2.05242 3.35826

• 5.41068

65.0% 3.5169 Elma

• 4.58578
• 4.58578

4.9% 0.2224 Evans 7.51144 0.50462

• 8.01606

100.0% 8.0161 Grand Island 3.05297 3.45223

• 6.50520

46.5% 3.0249 Hamburg 6.12975 2.82599

• 8.95574

61.0% 5.4630 Lancaster 2.42427 1.45506 2.03598 5.91531 100.0% 5.9153 Orchard Park 2.96928 2.49454

• 5.46381

58.0% 3.1690 Tonawanda 11.11650 2.59755

• 13.71405

48.5% 6.6513 West Seneca 10.32723 6.79323

• 17.12046

45.0% 7.7042

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