City of Shelton Financial Reports - FY 2011 Indexed

CITY OF
SHELTON
CONNECTICUT
COMPREHENSIVE
ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2011
Financial Section
Introductory Section
Statistical Section
CITY OF SHELTON, CONNECTICUT
COMPREHENSIVE ANNUAL FINANCIAL REPORT
TABLE OF CONTENTS
INTRODUCTORY SECTION
Letter of Transmittal
Principal Officials
Organizational Chart
FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements:
Government-Wide Financial Statements:
Exhibit
Statement of Net Assets A
Statement of Activities B
Fund Financial Statements:
Balance Sheet- Governmental Funds c
Statement of Revenues, Expenditures, and
Changes In Fund Balances (Deficit)- Governmental Funds D
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances (Deficit)
of Governmental Funds to the Statement of Activities E
Statement of Revenues, Expenditures and Changes in Fund
Balance - Budgetary Basis - Budget and Actual - General Fund F
Statement of Net Assets - Proprietary Funds G
Statement of Revenues, Expenses and Changes in Fund
Equities (Deficit) - Proprietary Funds H
Statement of Cash Flows - Proprietary Funds
Statement of Fiduciary Net Assets - Fiduciary Funds J
Statement of Changes in Fiduciary Net Assets - Fiduciary Funds K
Notes to Financial Statements
Page
Number
i-iii
iv
v
1-2
3a-3g
4
5-6
7
8
9
10
11
12
13
14
15
16-44
TABLE OF CONTENTS
Supplemental and Combining Nonmajor
Fund Statements and Schedules
General Fund
General Fund Revenues and Other Financing
Schedules
Sources Budget and Actual (Non-GAAP Budgetary Basis) 1
General Fund Expenditures, Encumbrances
and Other Financing Uses
- Budgetary Basis - Budget and Actual
Non-Major Governmental Funds
Combining Balance Sheet
Combining Statement of Revenues, Expenditures
And Changes in Fund Balances (Deficits)
W.P.C.A
General Fund Expenditures,
- Budgetary Basis - Budget and Actual
Fiduciary Funds
Combining Statement of Net Assets -
Private Purpose Trust Funds
Combining Statement of Changes in Net Assets
Private Purpose Trust Funds
Combining Statement of Fiduciary Net Assets -
Agency Funds
Combining Statement of Changes in Assets and
Liabilities - Agency Funds
Other Schedules
Schedule of Property Taxes Levied, Collected
And Outstanding
Schedule of Debt Limitation
2
3
4
5
6
7
8
9
10
11
Page
Number
45
46-47
48-59
60-71
72
73-76
77-79
80-81
82-83
84-85
86-87
TABLE OF CONTENTS
STATISTICAL SECTION
Table
Financial Trends
Net Assets By Component A-1
Changes in Net Assets A-2
Fund Balances A-3
Changes in Fund Balances A-4
Revenue Capacity
Assessed Value and Actual Value of Taxable Property B-1
Direct and Overlapping Property Tax Rates B-2
Principal Property Taxpayers B-3
Property Tax Levied and Collections B-4
Debt Capacity
Ratios of Outstanding Debt By Type C-1
Ratios of General Bonded Debt Outstanding C-2
Legal Debt Margin Information C-3
Demographic and Economic Information
Demographic and Economic Statistics D-1
Principal Employers D-2
Operating Information
Full-Time Equivalent City Government Employees E-1
Capital Assets Statistics By Function/Program E-2
Page
Number
88
89
90
91-92
93
94
95
96
97-98
99
100
101
102
103
104
This page intentionally left blank

i.03-9Z4-4Zl.3
:of

J$ltcl:fntt. <Htu:ttr..JJS4.84
December 20, 2011
To the Honorable Mayor, Members of the Board of Aldermen,
And the Citizens of the City of Shelton
State law requires that every general-purpose local government publish within six months of the close of
each fiscal year a complete set of audited financial statements. The report is published to fulfill that
requirement for the fiscal year ended June 30, 2011.
Management assumes full responsibility for the completeness and reliability of the information
contained in this report, based upon a comprehensive frame-work of internal control that it has
established for this purpose. Because the cost of internal controls should not exceed anticipated
benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements.
Levitsky & Berney P.C., Certified Public Accountants, have issued a qualified opinion of the C,ity of
Shelton's financial statements for the year ended June 30, 2011 because an independent actuary did not
complete a report on the post-employment benefits other than pension. The independent auditor's
report is located at the front of the financial section of this report.
Description of the Municipality
The City of Shelton (formerly known as Huntington) was incorporated in 1789 from Stratford as a town
and incorporated in 1919 as a City. Comprised of 31.4 square miles in northern Fairfield County,
contiguous to Stratford, Trumbull and Monroe to the Southwest and Derby, Orange and Milford lie
across the Housatonic River to the Northeast.
Form of Government
The City of Shelton operates under a Charter established in 1919, which was most recently revised in
1994. The City operates under a Mayor/Aldermen form of government. The Mayor is the Chief
Executive Officer of the City with all the executive powers, duties and responsibilities that the State
general statutes provide, as well as those assigned under the City Charter. The Mayor appoints the
Parks and Recreation Commission, the Administrative Assistant, Corporate Counsel, the Director of
Public Works, the Welfare Director, the Chairman of the Board of Fire Commissioners, and the Civil
Preparedness Director. The Mayor presides at the meetings of the Board of Aldermen and the Board of
Apportionments and Taxation but votes only to resolve a tie vote.
In addition to all powers granted to towns and cities under the constitution and general statutes of the
State of Connecticut, the City Board of Alderman, an eight member body, acts as the City's legislative
body which has specific powers to be executed through the enactment and enforcement of ordinances
and by-laws which protect or promote the peace, safety, good government and welfare of the City and
its habitants. The Board also has the power to provide for the organization, conduct, and operation of
the departments, agencies and offices of the City; for the number, titles qualifications, powers, duties
and compensation of all officers and employees of the City; and for the making of rules and regulations
necessary for the control, management and operation of all public buildings, grounds, parks, cemeteries
or other property of the City. Two members are elected for each of the City's four voting districts to
two-year terms. The board meets on a monthly basis.
The Board of Apportionment and Taxation consists of six elected members. The Board is responsible for
certain budgetary matters, including review of the Mayor's proposed budget and submittal to the Board
of Alderman of the recommended budget and mill rate.
Principal Municipal Officials
Manner of Length of
Office Name Selection/Term Service
Mayor Mark A. Lauretti Elected- 2 years 19
Treasurer Frank C. Pagliaro, Jr. Elected- 2 years 15
President- Board of Aldermen John F. Anglace, Jr. Elected- 2 years 19
Chairman- Board of Education Win Oppel Elected- 2 years 2
Superintendent of Schools Freeman Burr Appointed -Contract 1
Director of Finance Louis M. Marusic Appointed - Indefinite 27
Economic Conditions and Development
The City of Shelton works in partnership with the private sector and local residents and stakeholders to
retain its competitive advantage. Growth has continued in Shelton through the recent economic
downtown with significant future growth anticipated. Strategic investments are regularly made in
Shelton's infrastructure and in particular in the downtown revitalization area to respond to business and
job growth objectives. Shelton recognizes the value of "Smart Growth" planning and development
principles.
The City's manufacturing heritage traces to the late 1600's and was focused about the resources of the
Housatonic River. By 1880 over twelve manufacturing firms were located in the Canal Street Area. Over
time, Shelton transitioned from a manufacturing center to a more diverse economic base. Today,
Shelton is home to over 1,400 businesses of all sizes. The manufacturing sector has been bolstered by
the healthcare, insurance and financial services industries. Over 150 businesses are headquartered or
have significant corporate facilities within the City of Shelton. Prominent names include Pitney Bowes,
Pitney Bowes Credit Corporation, Perkin Elmer, Sure Source, Wai-Mart, BIC, and most recently the
Hubbell Corporation. The City now boasts five major hotels.
The City's economic success owes much to its location, the availability of affordable land, a well-trained
workforce and stable finances. A network of interstate and state highways serve the City and five
ii
national and international airports are within approximately one hour drive. Deep-water ports are in
Bridgeport, New Haven and New York City. Also favoring Shelton are attractive workforce
demographics, a respectable school system, and consistent grand list growth, stable taxes and well
managed finances. The City adheres to a policy of amortizing all debt over a ten-year period to ensure
that its resources do not become over-leveraged.
Shelton's development points to a stable economy of consistent growth in all development sectors
(Commercial/industrial and residential). Shelton has been recognized for two consecutive years as the
most affordable community in Connecticut for businesses.
It is estimated that over 350 acres remain available for appropriate commercial and industrial
development in the City. Development is in accordance with a comprehensive plan of development to
ensure that the growth does not exceed the City's resources. The local Planning and Zoning Commission
continually reviews and updates its plans. The Planning and Zoning Commission is currently updating its
downtown revitalization component of the Plan of Development.
The Downtown Revitalization area is continuing to significantly attract new private investment with 103
condominiums recently completed and 250 rental units under construction.
The City has in place a "Fast Track" procedure to assist developers with appropriate City Approvals. All
economic development activity is coordinated under the direction of the Office of the Mayor. The
Mayor acts as the economic development director with the technical assistance provided by the Shelton
Economic Development Corporation (SEDC), a not for profit private/public partnership, and the City of
Shelton Economic Development Commission (EDC) which has been given the responsibility for the
development and implementation of the City's marketing program. The SEDC and the EDC prepares and
disseminates a community and business newsletter four times a year. The publication provides updates
on the community and business activities in the City.
Acknowledgements
The preparation of the report would not have been possible without the efficient and dedicated services
of the entire staff of t ~ e finance department. Each member has my sincere appreciation for their
contributions made in the preparation of this report.
The comprehensive annual financial report reflects a commitment to the citizens of the City of Shelton,
The Honorable Mayor, the City Alderman and all concerned readers of this report, to provide
information in conformance with the highest standards of accountability.
Respectfully Submitted,
Louis Marusic
Director of Finance
iii
Administrative Assistant
City Clerk
Corporate Counsel
Director of Finance
Fire Chief
CITY OF SHELTON. CONNECTICUT
PRINCIPAL OFFICIALS
JUNE 30, 2011
Mark A. Lauretti
Board of Alderman
John "Jack" Finn, First Ward
Anthony F. Simonetti, First Ward
E r i ~ McPherson, Second Ward
Stanley Kudej, Second Ward
Lynne Farrell, Third Ward
John F. Anglace, Jr., Third Ward
John P. Papa, Fourth Ward
Noreen McGorty, Fourth Ward
ADMINISTRATION
Thomas Taylor
Marge Domorod
Thomas Welch
Louis M.Marusic
Fran Jones
Director of Economic Development Mayor Mark A. Lauretti,(Acting)
Director of Emergency Management
Management Information Systems
Director of Parks and Recreation
Benefits Administrator
Library.Director
Police Chief
Director of Public Works
Purchasing Agent
BOARD OF EDUCATION
Timothy Walsh
John Francino-Quinn
Kate Kutash
Paula Ellis
Kathleen Yolish
Arlene Liscinsky
Win Oppel
Thomas Minotti
Michael Pacowta
BOARD OF EDUCATION ADMINISTRATION
Freeman Burr, Superintendent of Schools
Lorraine Rossner, Assistant Superintendant of Schools
iv
John Millo
Louis M. Marusic
Ronald Herrick, Jr.
Robin Skowronski
Elspeth Lyden
Joel Hurliman
Paul DiMauro
Gene Sullivan
BoardofTax
Review
Sewer
Commission
Public Building
Commission
Employees
Accounting &
Control
Purchasing
Department
Tax Collector
Appoints Approves
I I
I
Drug and
Alcoho,l
Member Valley
Transit
Organization Chart
Elect
Appoints
J
I
Member Valley
Board of Health
Board of
Department Heads
(Merlt
System/Unions)
Treasury
Management
Assessor
Information
Technology
v
Director of
Director of Board of
Inland Wetland
Public Works
Economic Building
Commissioner
A eals
Corporation
Board of
Sheriffs
Counsel
Civil Defense Admission of
Welfare
Chief of Pollee
Conservation
Commission Authorlty
Director of Board of Parks Housing
Health and Recreation Authority
Board of Fire Energy
Commissioners Commission
Zoning Board of Jury
Appeals Commission
Economic Housing Code
Development Board of
LEVITSKY & BERNEY
A PROFESSIONAL CORPORATION OF CERTIFIED PUBLIC ACCOUNTANTS
100 BRADLEY ROAD WOODBRIDGE, CONNECTICUT 06525-2394
- ~ - - - 203389-5371 FAX203389-4430
Board of Aldermen
City of Shelton
Shelton, Connecticut
INDEPENDENT AUDITOR'S REPORT
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 City of Shelton, Connecticut, as of and for the year ended June 30,
2011, which collectively comprise the City's basic financial statements as listed in the
table of contents. These financial statements are the responsibility of the City of Shelton,
Connecticut's management. 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 includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinions.
Management has not provided for an independent actuarial report on the other post
employment benefits (OPES) that would be considered current for the fiscal year ended
June 30, 2011. Accounting principles accepted in the United States of America require
that such report would be necessary for proper disclosure and to accurately calculate the
net OPES obligation, which would affect the long-term liabilities in the governmental
activities of the government- wide financial statements. The affects these would have had
on the liabilities, net assets and expenses of the government-wide financial statements
were not reasonably determinable.
In our opinion, except for the effects of not providing an adequate calculation of the net
OPES obligation in the governmental activities of the government-wide financial
statements, as described in the preceding paragraph, the financial statements referred to
previously present fairly, in all material respects, the respective financial position of the
government wide financial statements of the City of Shelton as of June 30, 2011, and the
respective changes in financial position thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
-1-
In addition, in our opinion, the financial statements referred to previously present fairly, in
all material respects, the respective financial position of the business-type activities, each
major fund, and the aggregate remaining information for the City of Shelton as of June 30,
2011 and the respective changes in financial position and where applicable, cash flows
thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report
December 20, 2011, on our consideration of the City of Shelton, Connecticut's internal
control over financial reporting and on our tests of its compliance with certain provisions of
laws, regulations, contracts and grant agreements and other matters. The purpose of that
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 and should be considered
in assessing the results of our audit.
The management's discussion and analysis on pages 3a through 3g is not a required part
of the basic financial statements but is supplementary information required by accounting
principles generally accepted in the United States of America. We have applied certain
limited procedures, which consisted principally of inquiries of management regarding the
methods of measurement and presentation of the required supplementary information.
However, we did not audit the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements
that collectively comprise the City of Shelton, Connecticut's basic financial statements.
The introductory section, detailed budgetary information, combining and individual non-
major fund financial statements, other supplemental information presented as schedules
and statistical tables are presented for purposes of additional analysis and are not a
required part of the basic financial statements. The budgetary information, the combining
and individual non-major fund financial statements, and the other supplemental
information presented as schedules, have been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as a whole. The
introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements, and, accordingly, we express no
opinion on them.
December 20, 2011
-2-
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2011
This discussion and analysis of the City of Shelton, Connecticut's (the City) financial performance is
provided by management to provide an overview of the City's financial activities for the fiscal year
ended June 30, 2011. Please read this MD&A in conjunction with the City's financial statements.
Financial Highlights
Net assets of our governmental activities increased by $15.5 million
Net assets of our business-type activities decreased by $.3 million
The General Fund reported a fund balance this year of $12.35 million;
$3.1 million more than the general fund balance reported in the prior year
The resources available for appropriation were $6.9 million more than
expended through the General Fund operating budget.
Overview of the Financial Statements
This annual report consists of a series of financial statements. The statement of net assets and the
statement of activities (Exhibits A and B, respectively) provide information about the activities of the
City as a whole and present a longer-term view of the City's finances. Fund financial statements are
presented in Exhibits C and D. For governmental activities, these statements tell how these services
were financed in the short term as well as what remains for future spending. Fund financial statements
also report the City's operations in more detail than the government-wide statements by providing
information about the City's most significant funds. In addition, beginning in fiscal year 2008, the City
maintains the water pollution control authority as a proprietary fund (Exhibit G, Hand 1). The remaining
statements provide financial information about activities for which the City acts solely as a trustee or
agent for the benefit of those outside of the government.
Government- Wide Financial Statements
The analysis of the City as a whole begins on Exhibits A and B. The statement of net assets and the
statement of activities reports information about the City as a whole and about its activities for the
current period. These statements include all assets and liabilities using the accrual basis of accounting,
which is similar to the accounting used by most private-sector companies. All of the current year's
revenues and expenses are taken into account regardless of when cash is received or paid.
These two statements report the City's net assets and changes in them. The City's net assets, the
difference between assets and liabilities, are one way to measure the City's financial health, or
financial position. Over time, increases or decreases in the City's net assets are one indicator of
whether its financial health is improving or deteriorating. The reader needs to consider other
nonfinancial factors, such as changes in the City's property tax base and the condition of the City's
capital assets, to assess the overall health of the City.
3a
In the statement of net assets and the statement of activities, the City reports its activities as follows:
Governmental activities - The City's basic services are reported here, including general
government, public safety, community services, public works, education, public library and
municipal facilities. Property taxes, charges for services and state and federal grants
finance most of these activities.
Business-type activities- The Water Pollution Control Authority's activity is reported here.
Fund Financial Statements
The fund financial statements begin with Exhibit C and provide detailed information about the most
significant funds - not the City as a whole. Some funds are required to be established by Charter.
However, the Board of Aldermen establishes many other funds to help control and manage
financial activities for particular purposes or to show that it is meeting legal responsibilities for using
grants and other money (like grants received for education from the State and Federal
governments). The City's funds are divided into three categories: governmental, proprietary and
fiduciary.
Governmental funds (Exhibits C and D) - Most of the City's basic services are reported in
governmental funds, which focus on how money flows into and out of those funds and the
balances left at year-end that are available for spending. These funds are reported using an
accounting method called modified accrual accounting, which measures cash and all other
financial assets that can readily be converted to cash. The governmental fund statements
provide a detailed short-term view of the City's general government operations and the basic
services it provides. Governmental fund information helps you determine whether there are
more or fewer financial resources that can be spent in the near future to finance the City's
programs. The relationship (or differences) between governmental activities (reported in the
statement of net assets and the statement of activities) and governmental funds is described
in a reconciliation at the bottom of the fund financial statements.
Proprietary funds (Exhibits G, H and I) - When the City charges customers for the services it
provides, whether to outside customers or to other units of the City, these services are
generally reported in proprietary funds. Proprietary funds are reported in the same way that all
activities are reported in the statement of net assets and the statement of activities. Internal
service funds (the component of proprietary funds) are used to report activities that provide
supplies and services for the City's other programs and activities, such as the City's Worker's
Compensation Internal Service Fund.
Fiduciary funds (Exhibits J and K) - The City is the trustee, or fiduciary, for its employees'
pension plans. All of the City's fiduciary activities are reported in separate statements of
fiduciary net assets and changes in fiduciary net assets. These activities are excluded from
the City's other financial statements because the City cannot use these assets to finance its
operations. The City is responsible for ensuring that the assets reported in these funds are
used for their intended purposes.
3b
Government-Wide Financial Analysis
The analysis below focuses on the net assets (Table 1) and changes in net assets (Table 2) of the
City's governmental activities and business-type activities. The City's net assets for governmental
activities increased $16 million from $125 million in 2010 to $141 million in 2011.
The City's net assets for the business-type activities decreased $3 million for the fiscal year ending
June 30, 2011. The net assets went from $36.3 million at June 30, 2010 to $36.0 million at the end
of this fiscal year. The majority of this decrease can be attributed to a large increase in Transfers in
from other funds, which recognizes the City's payment to the Clean Water Fund loan on-behalf of
the W.P.C.A. Contributed Capital increased $.6 million mainly due to construction in progress for
upgrades to the waste water treatment plant.
TABLE 1 NET ASSETS:
Governmental Activities
2011 2010
Current and other assets $ 14,181,324 13,335,121
Capital assets 210,297,793 203,849,354
Total Assets $ 224,479,117 217,184,475
Current and other liabilities $ 10,388,326 22,709,291
Long-term liabilities 73,269,109 69,173,142
Total liabilities $ 83,657,435 91,882,433
Net assets:
Investment in capital assets,
net $ 141,955,562 140,429,354
Restricted 314,779 314,713
Unrestricted (1 ,448,659} ( 15,442,025}
Total net assets $ 140,821,682 125,302,042
Activities
2011 2010
Current and other assets $ 1,216,934 897,483
Capital assets 52,212,087 53,752,075
Total Assets $ 53,429,021 54,649,558
Current and other liabilities $ 768,412 1,664,076
Long-term liabilities 16,629,079 16,629,076
Net assets:
Investment in capital assets,
net of related debt $ 35,583,008 36,313,359
Restricted
Unrestricted 448,522 43,047
Total net assets $ 36,031,530 36,356,406
3c
TABLE 2
CHANGE IN NET ASSETS
Governmental
Activities
2011 2010
Revenues:
Program revenues:
Charges for services $ 5,298,914 4,704,189
Operating grants and contributions 14,696,829 15,447,769
Capital grants and contributions 1,670,500 8,396,542
General revenues:
Property taxes 97,584,875 95,334,065
Grants and contributions not restricted to specific
purposes 1,366,012 1,516,198
Unrestricted investment earnings 337,722 259,647
Other general revenues (and transfers) (875,758) (2,062,846)
Total revenues $ 120,079,094 123,595,564
Program expenses:
General government $ 11,507,155 13,038,212
Public safety 6,674,856 7,555,241
Public works 7,911,124 8,246,010
Health and welfare 222,752 220,858
Culture and recreation 3,242,617 4,768,891
Education 73,517,755 72,103,106
Miscellaneous
Interest and fiscal charges 1,483,195 2,253,448
Total program expenses $ 104,559,454 108,185,766
Increase in Net Assets $ 15,519,640 15,409,798
Business-type
Activities
2011 2010
Revenues:
Operating revenues:
Charges for services $ 2,532,044 2,470,409
Employer Contribution
Nonoperating revenues:
Capital Contribution 506,836 1,628,072
Interest Income 1,273 1,163
Other general revenues (and transfers) 1,151,019 2,155,477
Total revenues $ . 4,191,172 6,255,121
Operating expenses:
Salaries & Benefits $ 596,946 564,673
Claims
Materials and Supplies 110,946 146,415
Utilities
413,974 381,100
Depreciation 2,215,412 1,210,507
Administration 837,391 950,413
Miscellaneous
Interest and fiscal charges 341,379 647,629
Total expenses $ 4,516,048 3,900,737
(Decrease) Increase in Net Assets $ (324,876) 2,354,384
3d
City Funds Financial Analysis
Governmental Funds
As the City completed the year, its governmental funds (as presented in the balance sheet- Exhibit
C) reported a combined fund balance of $5.9 million which is a $12.9 million increase from the
previous year. Included in this year's total change in fund balance is an increase of $9.6 million in
the City's Capital Projects Fund. This is mainly due to the large ongoing school construction
project, which was mostly bonded by the end of the fiscal year. Fur;ther bonding will be completed
when the project is fully closed and audited by the State of Connecticut.
The general fund provided savings through the reduction of payroll, the reimbursement of highway
and bridges expenses through federal grants, and the savings from the Board of Education found
in the fringe benefit's unemployment. This savings in expenditures were netted against a better
than anticipated collection in taxes to produce a $6.9 million budgetary surplus. The $5.1 million of
the surplus was appropriated by the Board of Alderman to reduce taxes in the subsequent year's
budget and provide funding to the Perry School Project.
Proprietarv Funds
The City reports the Water Pollution Control Authority as a proprietary fund (Exhibit G, H, and 1).
Under this presentation, the operating loss was $324,876, mainly due to depreciation expense of
$2,215,412.
The Internal Service Fund recorded a negative change in net assets. Operating revenues were
less than operating expenses by $578,556. Management is aware of the $5.5 million deficit in this
fund and has a long term financing plan to fund this deficit through growing employer
contributions, reducing the worker's compensation expenses and reorganizing the funding
structure.
General Fund Budgetary Highlights
Exhibit F shows the summary information of budget to actual revenues, expenditures and
changes in undesignated, unreserved fund balance (funds available to be appropriated).
Property tax collections were better than expected.
The General government and Public safety expenditures came in below the budget by
$2,467,993 and $1,572,286 respectively due to payroll reductions.
Public work's expenditures came in under budget due to new CRRA rates and the funding
of highway and bridges projects by the federal government.
3e
Capital Assets
At June 30, 2011, the City had $210.3 million invested in a broad range of capital assets, including
land, buildings, park facilities, vehicles and equipment, roads, bridges, and water and sewer lines.
In separating the Water Pollution Control Authority from the government funds, $52.2 million in
capital assets were reclassified into this fund, which mainly includes sewers and the newly
constructed facility. The total City's amount represents a net increase (including additions and
deductions) of $4.9 million.
TABLE3
CAPITAL ASSETS (Net of Depreciation)
Land
Buildings and improvements
Furniture, fixtures and equipment
Infrastructure
Construction in progress
Totals
Infrastructure
Totals
$
Governmental
Activities
2011 2010
31,939,289
46,126,771
3,132,858
45,852,783
83,246,231
31,713,509
42,522,832
3,154,860
47,264,361
79,193,792
$
210,297,932 203,849,354
$
=====
Business-type
Activities
2011
25,957,723
25,153,997
1,100,367
2010
27,422,628
25,904,504
$
52,212,087
424,943
53,752,075
=====
This year's major additions included the continuation of several school improvements projects,
continuing purchases of Open Space, further sewer projects and the annual capital projects. The
largest continuing projects include the education upgrades, which will be partially funded through
State grants.
Long-Term Debt
At June 30, 2011 the City's governmental activities had $67.8 million in long term liabilities versus
$63.4 million last year- an increase of 7% -as shown in Table 4. This does not include the bond
anticipation note of $3.16 million.
3f
TABLE4
OUTSTANDING DEBT (In Thousands)
2011 2010
$
63,420
General obligation bonds (backed by the City)
Standard & Poor's reaffirmed its rating on the City's GO Bonds of "AA" from "A+" and its rating of
"SP-1+" on the City's G.O. BANS.
The S&P rating specified improved financial performance, a strong and diverse economic base,
continued property value growth, ongoing development of down town and riverfront properties,
wealth indicators above both State and national averages, low property tax rate compared to
surrounding municipalities and a low debt burden with rapid amortization.
Moody's Investors Service has reaffirmed an "Aa3" rating to the General Obligation Bonds and a
"MI G-1" rating to Bond Anticipation Notes. The ratings are primarily based upon the City's
demonstrated access to capital markets, a favorable trend of tax base expansion, modest debt
burden and a rapid retirement of outstanding obligations.
Other obligations include accrued vacation pay and sick leave. More detailed information about
the City's long-term liabilities is presented in Note 8 to the financial statements. Included in the
Business-type activities is $16,629,079 in notes payable, which was Clean Water Notes closed
during the fiscal year for the construction of the new water pollution control facilities.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The City's elected and appointed officials considered many factors when setting the fiscal-year 2012
budget tax rates. One of those factors is the economy.
These indicators along with a projected modest inflationary increase were taken into account when
adopting the General Fund budget for 2010-11. Amounts allocated for appropriation in the General
Fund budget of 2010-11 from current surplus is $4,393,096. Property taxes (benefiting from the
increase in Grand List allowed the City to maintain the same mill rate in 2010-2011 and reducing
the mill rate in the 2011-2012 budget.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide citizens, taxpayers, customers, investors and creditors
with a general overview of the City's finances and to show the City's accountability for the money it
receives. If you have questions about this report or need additional financial information, contact the
Director of Finance, City of Shelton, 54 Hill Street, Shelton, Connecticut, 06484.
3g
STATEMENT OF NET ASSETS
June 30, 2011
Assets:
Cash and cash equivalents
Investments
Receivables, net
Prepaid assets
Inventory
Internal balances
Capital assets:
Capital assets, not being depreciated
Capital assets, being depreciated, net
Total assets
Liabilities:
Accounts payable and accrued expenses
Unearned revenue
Accrued interest
Bond anticipation notes
Claims incurred, but not reported
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Assets:
Invested in capital assets, net of related debt
Restricted for:
Nonexpendable trust purposes
Debt service
Unrestricted
Total net assets
* After internal balances have been eliminated
Governmental
Activities
$ 10,208,069
28,365
4,482,626
6,000
80,449
(624,324)
115,185,520
95,112,412
$ 224,479,117
$ 1,753,239
3,240,878
229,863
3,160,000
2,004,346
11,247,110
62,021!999
$ 83,657,435
$ 141,955,562
47,817
266,962
(1 ,448!659}
$ 140,821,682
The accompanying notes are an integral part of the financial statements.
-4-
EXHIBIT A
Business-type
Activities Total*
478,350 10,686,419
28,365
114,260 4,596,886
6,000
80,449
624,324
115,185,520
52,212!087 147,324!499
53,429,021 277,908,138
120,225 1,873,464
648,187 3,889,065
229,863
3,160,000
2,004,346
712,733 11,959,843
15,916,346 77,938,345
17,397,491 101,054,926
35,583,008 177,538,570
47,817
266,962
448,522 (1,000!137}
36,031,530 176,853,212
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2011
Program
Revenues
Charges for
Functions/programs Expenses Services
Primary Government:
Governmental activities:
Public safety 6,674,856 1,044,326
Public works 7,911,124 606,606
Health and welfare 222,752
Cultural and recreation 3,242,617 522,461
Education 73,517,755 1,926,202
Interest on long-term debt 1,483,195
Total governmental activities $ 104,559,454 5,298,914
Business-type activities:
Water Pollution Control Authority $ 4,174,669 2,532,044
Interest on long-term debt 341,379
Total business-type activities $ 4,516,048 2,532,044
Total primary government $ 109,075,502 7,830,958
The notes to the financial statements are an integral part of this statement.
-5-
Program Revenues
Operating Capital
Grants and Grants and
Contributions Contributions
50,520 30,000
250,961 292,489
14,395,348 1,348,011
14,696,829 1,670,500
14,696,829 1,670,500
General revenues:
Property taxes $
Grants and contributions not
restricted for specific programs
Unrestricted investment earnings
Disposal of capital assets
Capital contributions
Other unrestricted income
Transfers
Total general revenues and transfers $
Change in net assets $
Net assets, beginning $
Net assets, ending $
Net (Expenses) Revenue and Changes in Net Assets
Primary Government
Governmental
Activities
(10,307,836)
(5,550,010)
(6, 761,068)
(222,752)
(2, 720,156)
(55,848,194)
(1 ,483,195}
(82,893,211)
(82,893,211)
97,584,875
1,366,012
337,722
(75,960)
351,221
{1,151,019)
98,412,851
15,519,640
125,302,042
140,821,682
-6-
Business-type
Activities
(1,642,625)
(341,379}
(1,984,004)
(1,984,004)
1,273
506,836
1,.151,019
1,659,128
(324,876)
36,356,406
36,031,530
Total
(10,307,836)
(5,550,010)
(6,761,068)
{222,752)
(2, 720,156)
(55,848,194)
(1,483,195}
(82,893,211)
(1,642,625)
(341,379}
(1,984,004)
(84,877,215)
97,584,875
1,366,012
338,995
(75,960)
506,836
351,221
100,071,979
15,194,764
161,658,448
176,853,212
EXHIBIT B
CITY OF SHELTON, CONNECTICUT EXHIBITC
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2011
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Assets
Cash and cash equivalents $ 6,374,339 221,459 3,612,194 10,207,992
Investments 27,397 968 28,365
Receivables, net 3,625,755 73,150 783,721 4,482,626
Due from other funds 10,473,198 324,026 594,762 11,391,986
Inventories 57,293 22,856 80,149
Prepaid expenses 6,000 6!000
Total assets $ 20,563,982 619,603 5,013,533 26,197,118
Liabilities and Fund Balances
Liabilities:
Accounts and other payables $ 864,773 409,003 479,463 1,753,239
Due to other funds 1,270,850 5,994,460 1,230,454 8,495,764
Deferred revenue 6,079,888 97,713 737,141 6,914,742
Bond anticipation notes 3,160,000 3,160,000
Total liabilities $ 8,215,511 9,661,176 2,447,058 20,323,745
Fund balances:
Nonspendable $ 63,293 70,973 134,266
Restricted for:
Debt service 266,962 266,962
Committed for:
Subsequent Year's Operating Budget 4,393,096 4,393,096
Open Space 32,266 32,266
Perry School Project 750,000 750,000
Special Projects 186,616 186,616
Other 919,932 795,847 1,715,779
Assigned 212,000 2,136,339 2,348,339
Unassigned 6,010,150 (9,837,420} (126,681} (3,953,951}
Total fund balances $ 12,348,471 (9,041 ,573) 2,566,475 5,873,373
Total liabilities and fund balances $ 20,563,982 619,603 5,013,533
Amounts reported for governmental activities in the statement of net assets (Exhibit A) are different because :
Capital assets used in the governmental activities are not financial resources and therefore, are not
reported in the funds.
Other long-term assets are not available to pay for current period expenditures, and, therefore,
are deferred in the funds.
Internal service funds are used by management to charge the costs of risk management to individual
funds. The assets and liabilities of the internal service funds are included in the governmental
activities column in the statement of net assets.
Long-term liabilities, including bonds payable, are not due and payable in the current period and
therefore are not reported in the funds.
Net assets of governmental activities (Exhibit A)
The accompanying notes are an integral part of the financial statement.
-7-
210,297,932
3,673,864
(5,524,515)
(73,498,972}
$ 140,821,682
CITY OF SHELTON, CONNECTICUT EXHIBIT D
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES (DEFICITS)
GOVERNMENTAL FUNDS
Other Total
Capital Governmental Governmental
General Projects Funds Funds
Revenues:
Property taxes and assessments $ 97,607,161 97,607,161
Intergovernmental 11,947,574 1,348,011 4,437,756 17,733,341
Charges for services 2,269,750 1,926,202 4,195,952
Investment income 333,475 3 4,244 337,722
Miscellaneous 1,325,265 36,000 341,888 1 ,703,153
Total revenues $ 113,483,225 1,384,014 6,710,090 121,577,329
Expenditures:
Current:
General government $ 11,301,650 206,988 11,508,638
Public safety 6,175,224 208,204 6,383,428
Public works 6,002,661 281,887 6,284,548
Public health 222,752 222,752
Culture and recreation 3,122,826 51,265 3,174,091
Education 67,380,683 5,521,921 72,902,604
Other 3,098,745 55,599 3,154,344
Capital outlay 5,742,154 312,500 6,054,654
Debt service 12,072,249 12,072,249
Total expenditures $ 109,376,790 5,742,154 6,638,364 121,757,308
Excess (deficiency) of revenues
over (under) expenditures $ 4,106,435 (4,358, 140) 71,726 (179,979}
Other financing sources (uses)
Transfer from other funds $ 597,500 460,267 1,057,767
Transfer to other funds (1 ,611 ,286) (312,500) (285,000) (2,208,786)
Proceeds from sale of bonds 14,235,000 14,235,000
Total other financing sources (uses) $ (1,013,786} 13,922,500 175,267 13,083,981
Net changes in fund balances $ 3,092,649 9,564,360 246,993 12,904,002
Fund balances (deficits) beginning 9,255,822 (18,605,933) 2,319,482 (7,030,629}
Fund balances (deficits)- ending $ 12,348,471 (9,041 ,573) 2,566,475 5,873,373
-8-
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES (DEFICIT) OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
EXHIBIT E
Differences in amounts reported for government wide activities in the Statement of Activities are due to:
Net change in fund balances - total governmental funds (Exhibit D)
Governmental funds report capital outlays as expenditures; however, in
the statement of activities the cost of those assets is allocated over their
estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period.
Revenues previously recognized in the statement of activities that provided
current financial resources in the current year.
The issuance of long-term debt (e.g., bonds, leases) provide current financial
resources to governmental funds, while the repayment of the principal of
long-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net assets. Also,
governmental funds report the effect of issuance costs, premiums, discounts,
and similar items when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities. This amount is the net effect of
these differences in the treatment of long-term debt and related items.
The net expense of certain activities of internal service funds is reported with
governmental activities.
Change in net assets of governmental activities (Exhibit B)
-9-
$ 12,904,002
6,448,578
241,114
(3,495,798)
(578,256)
$
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE-
BUDGETARY BASIS BUDGET AND ACTUAL GENERAL FUND
Budgeted Amounts
Original Final
Revenues:
Property taxes $ 96,386,500 96,386,500
Intergovernmental 7,406,387 7,406,387
Charges for services 1,951,969 2,131,969
Investment income 100,000 100,000
Other revenues 1 '136,447 1 '136,447
Total revenues $ 106,981,303 107,161,303
Expenditures:
Current:
Public safety 7,604,308 7,643,593
Public works 6,613,689 6,644,176
Health and welfare 222,753 222,753
Cultural and recreation 3,468,592 3,468,592
Education 63,100,000 63,100,000
Other 3,557,998 3,561,298
Debt service:
Principal retirements 7,560,000 7,560,000
Interest and other charges 4,512,253 4,512,253
Payment on behalf of W.P.C.A. 1,151,020 1,151,020
Total expenditures $ 111,374,399 111,554,399
Revenues over (under) expenditures $ (4,393,096) (4,393,096)
Other financing sources (uses):
Contributions from Fund Balance $ 4,393,096 4,393,096
Total other financing sources (uses) $ 4,393,096 4,393,096
Revenues Over Expenditures and Other
Financing Sources (Uses) $
Less:
Transfer restricted funds to Special revenue
Change in nonspendable
Committed for Perry School
Designated surplus for subsequent fiscal year
Net Change in unassigned fund balance $
Unassigned fund balance, July 1, 2010
Unassigned fund balance, June 30, 2011 $
-10-
EXHIBIT F
Actual Variance With
Amounts Final Budget
Budgetary Positive/
Basis (Negative)
97,607,161 1,220,661
6,902,858 (503,529)
2,269,750 137,781
333,475 233,475
1,325,265 188,818
108,438,509 1,277,206
11,222,721 2,467,993
6,071,307 1,572,286
5,846,055 798,121
222,752 1
3,116,054 352,538
63,045,971 54,029
3,100,561 460,737
9,825,000 (2,265,000)
2,247,249 2,265,004
1,151,019 1
105,848,689 5,705,710
2,589,820 6,982,916
4,393,096
4,393,096
6,982,916 6,982,916
(147,767)
(6,000)
(750,000)
{4,393,096)
1,686,053
4,324,097
6,010,150
CITY OF SHELTON, CONNECTICUT EXHIBITG
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
June 30, 2011
Business-type Governmental
Activities Activities
Water Workers'
Pollution Compensation
Control Fund
Assets
Current assets:
Cash and cash equivalents $ 478,350 77
Receivables, net of allowance 114,260
Due from other funds 624,324
Total current assets $ 1,216,934 77
Noncurrent assets:
Capital assets; net of accumulated
depreciation $ 52;212,087
Total noncurrent assets $ 52,212,087
Total assets $ 53,429,021 77
Liabilities
Current liabilities:
Accounts payable & accrued liabilities $ 120,225
Payments in advance 648,187
Due to other funds 3,520,546
Notes payable - current 712,733
Total current liabilities $ 1,481 '145 3,520,546
Noncurrent liabilities:
Incurred, but not reported claims $ 2,004,046
Notes payable, less current portion 15,916,346
Total noncurrent liabilities $ 15,916,346 2,004,046
Net Assets
Invested in capital assets, net of
related debt $ 35,583,008
Unrestricted 448,522 (5,524,515}
Total net assets $ 36,031,530 (5,524,515)
-11-
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND EQUITIES (DEFICIT)
PROPRIETARY FUNDS
Business-type
Activities
Water
Pollution
Control
Operating revenues:
Charges for services $ 2,532,044
Employer's contribution
Total operating revenues $ 2,532,044
Operating expenses:
Salaries and benefits $ 596,946
Claims
Material and supplies 110,946
Utilities 413,974
Depreciation 2,215,412
Administration and operation 837,391
Total operating expenses $ 4,174,669
Operating income (loss) $ (1 ,642,625)
Nonoperating revenues (expenses):
Interest income $ 1,273
Interest expense (341,379}
Total nonoperating revenues (expenses) $ (340,106)
Capital contributions $ 506,836
Transfer in from other funds $ 1,151,019
Change in Net Assets $ (324,876)
Fund Equities, (Deficit), beginning 36,356,406
Fund Equities, (Deficit), ending $ 36,031,530
-12-
EXHIBITH
Governmental
Activities
Workers'
Compensation
Fund
1,273,120
1,273,120
1,643,450
207,926
1,851,376
{578,256)
(578,256)
(4,946,259)
(5,524,515)
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Cash Flows From Operating Activities
Receipts from customers
Payments to suppliers
Payments to employees
Net cash flows from operating activities
Cash Flows From Capital and Related Financing Activities
Purchase of fixed assets
Principal payments on capital debt
Interest paid on capital debt
Net cash provided by (used in) capital
and related financing activities
Cash Flows From Noncapital and Related Financing Activities
Transfer in and payments made through governmental activities
Net cash provided by (used in) Noncapital
and related financing activities
Cash Flows From Investing Activities
Interest received on investments
Net cash provided by investing activities
Net increase (decrease) in cash and cash equivalents
Cash and Cash Equivalents, beginning
Cash and Cash Equivalents, ending
Business-type
Activities
Water
Pollution
Control
$ 2,482,619
(1 ,470,246)
(596,946}
$ 415,427
$ (168,588)
(809,639)
(341,379}
$ (1,319,606)
$ 1,151,019
$ 1,151,019
$ 1,273
$ 1,273
$ 248,113
230,237
$ 478,350
Reconciliation of Operating Income (Loss) to Net Cash Provided by (Used In)
Operating Activities:
Operating Income (Loss) $ (1,642,625)
Adjustments to reconcile operating loss to net cash provided by
(used in) operating activities:
Depreciation
Changes in assets and liabilities:
Decrease (increase) in receivable accounts
Decrease (increase) in due from other funds
Increase (decrease) in accounts payable
Increase (decrease) in payments in advance
Increase (decrease) in claims incurred but not reported
Net cash flows from operating activities
Noncash investing, capital, and financing activities
Contributions of capital assets from government activities
-13-
2,215,412
(49,425)
(21,911)
(14,159)
(11,865)

$====5=06==83=6=
EXHIBIT I
Governmental
Activities
Workers'
Compensation
Fund
1,273,120
(1,881,935)
(608,815)
608,420
608,420
(395)
472
(578,556)
(30,259)
(608,815)
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
June 30, 2011
Assets
Accounts receivable
Investments, at fair value:
U.S. government obligations
Money markets
Other
Total assets
Liabilities
Other liabilities
Held for deposit for others
Total liabilities
Net Assets:
Held in trust for pension benefits
and other purposes
-14-
EXHIBIT J
Private
Purpose Agency
Trust Funds Funds
$ 1,307,063 587,923
39,607
220,533
1,546,811
$ 3,114,014 587,923
$ 421 4,500
583,423
$ 421 587,923
$ 3,113,593
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
ADDITIONS
Contributions:
Contributions and donations
Other
Total contributions
Investment earnings:
Net increase in fair value of investments
Interest and dividends
Less: Investment expenses
Total investment earnings
Total additions
DEDUCTIONS
Other deductions
Total deductions
Change in net assets
NET ASSETS, beginning
NET ASSETS, ending
-15-
EXHIBITK
Private
Purpose
Trust Funds
$ 10,054
37,283
$ 47,337
$ 227,496
41,520
{12,987}
$ 256,029
$ 303,366
$ 172,039
$ 172,039
$ 131,327
$ 2,982,266
$ 3,113,593
CITY OF SHELTON CONNECTICUT
NOTES TO FINANCIAL STATEMENTS
June 2011
Note 1 - Summary of Significant Accounting Policies
Reporting Entity
The City of Shelton, Connecticut (the City) was settled in 1789 and incorporated as a City in
1919. It operates under an elected mayor and an eight-member Board of Alderman.
The City provides a full range of services including public safety, roads, sanitation, health, social
services, culture and recreation, education, planning, zoning and general administrative
services to its residents.
Measurement Focus, Basis of Accounting and Financial Statement Presentation
The financial statements of the City 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 board for
governmental accounting financial reporting principles. These principles require that the City
report government-wide and fund financial statements, which are described below.
Government-wide financial statements
The government-wide financial statements (i.e., the statement of net assets and the statement
of changes in net assets) report information on all of the non-fiduciary activities of the primary
government. Government activities, which is normally supported by taxes and
intergovernmental revenues, are reported separately than business-type activities, which rely to
a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given
function or segment of, are offset by program revenues. Direct expenses are those that are
clearly identifiable with a specific function or segment. 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 to
meeting the operational or capital requirements of a particular function or segment. Taxes and
other items not properly included among program revenues are reported instead as general
revenues.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are proprietary fund and fiduciary
fund financial statements. Under this method, revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred. Property taxes are recognized as
revenues in the year for which they are levied. Grants and similar items are recognized as
revenues as soon as all eligibility requirements imposed by the provider have been met.
-16-
NOTES TO THE FINANCIAL STATEMENTS, Continued
June 30 2011
As a general rule, the effect of inter-fund activity, or internal balances, has been eliminated from
the government-wide financial statements. Exceptions to this rule are charges between the
business-type funds and the various other functions of the City. Elimination of these charges
would distort the direct costs and program revenues reported for the various functions.
Fund financial statements
Separate financial statements are provided for governmental funds, proprietary funds and
fiduciary funds even though the later are excluded from the government-wide financial
statements. Major individual governmental funds are reported as separate columns in the fund
financial statements.
The 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. Expenditures are generally recorded when a liability has occurred, as under
accrual accounting. However expenditures related to long-term liabilities, such as debt service
payments and compensated absences, are recorded only when payment is due.
Property taxes are levied on all taxable assessed property on the grand list of October 1 prior to
the beginning of the fiscal year. Real estate taxes are payable in two installments (July 1 and
January 1). Personal property taxes are payable annually (July 1) and motor vehicle taxes are
due in one single payment on July 1. Liens are filed on delinquent real estate taxes within one
year. Revenues from property taxes are recognized when they become available. Available
means due, or past due, and receivable within the current period or expected to be collected
soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the
City considers property tax revenue to be available if they are collected within 60 days of the
end of the fiscal year.
Those revenues susceptible to accrual are property taxes, special assessments and interest
revenue. Fines, permits and charges for services are not susceptible to accrual because
generally they are not measurable until received in cash.
Intergovernmental revenues grants and similar items are recognized as soon as all eligible
requirements imposed by the provider have been met and are collected soon enough to pay
liabilities of the current period. For this purpose, grants may be recognized and received after
60 days of the fiscal year end.
-17-
June 30 2011
The City reports the following major governmental funds:
The general fund is the general operating fund of the City's government. All
unrestricted resources, except those required to be accounted for in another fund, are
accounted for in this fund. From this fund are paid general operating expenditures, fixed
charges, principal and interest on long-term debt and capital improvement costs of the
City, which were not paid through a special fund.
The capital projects fund is used to account for resources used for capital
expenditures or for the acquisition or construction of capital facilities, improvements and
equipment. Most of the capital outlays are financed by the issuance of general obligation
bonds and capital grants. Other sources include current tax revenues and low interest
state loans.
The City reports the following major proprietary funds:
The Water Pollution Control Authority (W.P.C.A.) accounts for the operations of the
City's wastewater treatment system. The City operates its own sewage treatment plant,
sewage pumping stations and collection system. Its operations are financed from direct
charges to the users of the service.
Additionally, the City reports the following fund types:
The internal service fund account for employee heart and hypertension and workers'
compensation insurance provided to departments of the City.
The private-purpose trust fund is used to account for assets held by the City in a
trustee capacity or as an agent on behalf of others. An example includes the Plum
Memorial Library, which maintains the assets received through contributions, fees and
charges of the library.
The agency funds account for monies held as a custodian for outside groups and
agencies such as student activity funds, senior trip funds and performance bonds.
Private-sector standards of accounting anq financial reporting issued prior to December 1, 1989,
generally are followed in both the government-wide and the enterprise funds reported in the
proprietary fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board. Governments also have
the option of following subsequent private-sector guidance for their government-wide and
propriety fund financial statements subject to this same limitation. The City has elected not to
follow subsequent private-sector guidance.
-18-
June 30 2011
Proprietary funds distinguish operating revenues and expenses from non-operating items.
Operating revenues and expenses generally result from providing services in connection with a
proprietary fund's principal ongoing operations.
The principal operating revenues of the proprietary funds are charges to customers for services.
Operating expenses for enterprise and internal service funds include the cost of operations and
maintenance, provisions for doubtful accounts, and depreciation on capital assets. All revenues
and expenses not meeting this definition are reported as non-operating revenues and expenses.
Assets, Liabilities and Net Assets or Equity
The City considers cash on hand, deposits and short-term investments, with an original maturity
of three months or less, to be cash and cash equivalents.
Investments
Investments are stated at the fair value using quoted market prices.
Inventories
Inventories are stated at the lower of cost or market using the consumption method on the first-
in, first-out basis for governmental fund types.
Receivables and payables
Activities between funds that are representative of lending or borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"
(current portion of interfund loans) or "advances to/from other funds" (noncurrent portion of
interfund loans). Any residual balances outstanding between governmental activities and
business type activities are reported in the government-wide financial statements as "internal
balances".
Advances between funds, as reported in the fund financial statements, are offset by a fund
balance reserve account in applicable funds to indicate that they are not available for
appropriation and are not expendable as financial resources.
All trade and property tax receivables, including those for W.P.C.A. funds, are shown net of an
allowance for uncollectible accounts. Trade account receivables allowance for uncollectible
accounts is estimated based on the inherent risk associated with the accounts.
-19-
June 30 2011
Capital assets
Capital assets, which include property, plant and equipment and infrastructure assets (e.g.,
roads, bridges, sidewalks and similar items) are reported in the applicable governmental or
business-type activities columns in government-wide financial statements. Capital assets are
defined by the government as assets with an initial individual cost of more than $20,000 and an
estimated useful life in excess of two years.
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair value at the date of
donation. The cost of normal maintenance and repairs that do not add to the value of the net
assets 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 the business-type activities is
included as part of the capitalized value of the assets constructed.
Property, plant and equipment of the City are depreciated using the straight-line method over
the following estimated U!:)eful lives:
Asset
Infrastructure
Machinery and equipment
Years
25-50
10-65
5-20
Capital assets are reported as expenditures and no depreciation expense is reported in the
governmental fund financial statements.
Compensated absences
Under the terms of its various union contracts, City and Board of Education employees are
granted vacation and sick time in varying amounts based on length of service. Certain
employees may also carry over a limited number of unused vacation days to subsequent years
based on the terms of an employment or union contract. In the event of termination, these
employees are reimbursed for accumulated vacation. The City recognizes a liability in the
government-wide financial statements for the vested portion, as well as the unvested portion to
the extent expected to be paid, as compensated absences.
Deferred revenue
Deferred revenue arises when potential revenue does not meet both the measurable and
available criteria for recognition in the current period. Deferred revenue also arises when
resources are received by the City before it has a legal claim to them, as when grant monies are
received prior to the incurrence of qualifying expenditures. In subsequent periods, when both
revenue recognition criteria are met, or when the City has a legal claim to the resources, the
liability for deferred revenue is removed and revenue is recognized.
-20-
June 30 2011
Long-term obligations
In the government-wide financial statements and proprietary fund types in 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 assets. Bond premiums and discounts, as well as issuance costs, are deferred and
amortized over the life of the bonds using the effective interest method. Bonds payable are
reported net of the applicable bond premium or discount. Bond issuance costs are reported as
deferred charges and amortized over the terms of the related debt.
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 the
debt issued is reported as other financial 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 service expenditures.
Fund equity and net assets
In the government-wide financial statements, net assets are classified in the following
categories:
Investment in capital assets, net of related debt - This category groups all capital
assets, including infrastructure, into one component of net assets. Accumulated
depreciation and the outstanding balances of debt that are attributable to the acquisition,
construction or improvement of these assets reduce this category.
The restricted net assets represent amounts of external restrictions imposed by
creditors, grantors, contributors and laws or regulations of other governments and
restrictions imposed by law through constitutional provisions or enabling legislation.
The unrestricted net assets represent the net assets of the City which are not
restricted for any project or other purpose.
In the fund financial statements, fund balances of governmental funds are classified into two
separate categories. The five categories and their general meanings are as follows:
The nonspendable are those net assets that are not in expendable form or are legally
or contractually required to be maintained.
The restricted fund balances are defined in the same manner as for the restricted
government-wide net assets.
Committed fund balances are those balances that can only be used for a specific
purpose as a result of constraints imposed by formal action of the government's highest
level of decision-making authority. For the City of Shelton, that was considered to be the
Board of Alderman.
-21-
June 30 2011
Assigned fund balance are amounts that are contained by the government's intent to
be used as a specific purpose.
Unassigned fund balance is defined as the residual classification for the general fund
and includes those remaining balances that cannot be categorized in the four categories.
Note 2- Budgets and BudgetarY' Accounting
General Fund
The Statement of Revenues and Expenditures, and Change in Fund Balance- Budgetary Basis
- Budget to Actual presented in the financial statements for the General Fund is on the
budgetary basis of accounting which is a basis of accounting other than the accrual basis and
the modified basis of accounting. The budgetary basis of accounting and the City's general
budget policies are as follows:
A. The manager of each department, office and agency submits to the Mayor, by January
15, estimates of revenues and expenditures for the following year.
B. The Mayor reviews these estimates and may revise them as he deems advisable, except
that in the case of the department of education, he has the authority to revise only the
total estimated expenditures.
C. On or before February 22, the Mayor, with the assistance of the Director of Finance,
submits to the Board of Apportionment and Taxation. The Board, by majority vote of full
membership, approves the budget and submits it to the Board of Alderman by April 1.
D. The City's Board of Apportionments and Taxation is authorized to transfer budgeted
amounts within one department. However, any transfers between departments or
additional appropriations, must be approved by the City Alderman. Additional
appropriations. by the Aldermen may be approved from any contingency fund or the
general fund's undesignated fund balance, without levying a special tax. There were
additional appropriations of approximately $303,210 during the year ended June 30,
2011, which were funded through additional revenues received.
E. All unencumbered appropriations lapse at year-end except those for capital projects and
nonrecurring special revenue funds. Appropriations for these funds are continued until
completion of applicable projects, which generally last more than one year.
F. Encumbrances are recognized as a valid and proper charge against a budget
appropriation in the year in which the purchase order, contract or other commitment is
issued and, accordingly, encumbrances outstanding at year-end are reflected in
budgetary reports as expenditures of the current year.
G. The legal level of budgetary control is at the department level.
-22-
June 30 2011
A reconciliation of General Fund operations and fund balance presented on a budgetary basis
to the amounts presented in accordance with accounting principles generally accepted in the
United States of America (GAAP) is as follows:
Balance, budgetary basis
Encumbrances of June 30, 2010
Encumbrances of June 30, 2011
The budgetary expenditure for education was
netted against the amount received from
students to participate in athletic activities
State Teachers' Retirement "on-behalf'
payment, not recognized for budgetary
purposes
Department of Education included a savings
portion of self insured dental to be available
for dental payments in the future
Payment on-behalf of W.P.C.A was made
through the operating budget, but was
recorded as a transfer for budgetary
purposes
Balance, GAAP basis
Revenues
$ 108,438,509
5,044,716
$
Expenditures
and
Encumbrances
1 05,848,689
481,336
(919,932)
285,000
5,044,716
(212,000)
(1,151,019)
109,376,790
The other financial sources (uses) were adjusted as follows:
Balance, budgetary basis
Transfer to W.P.C.A.
Transfer to COP Earmark
Pay to Play Reimbursements
Designated surplus
Balance, GAAP basis
Special Revenue Funds
$ 4,393,096
(1,151,019)
(147,767)
285,000
(4,393,096)
The City does not have legally adopted annual budgets for the Special Revenue Funds.
Budgets for the various special revenue funds which are utilized to account for specific grant
programs are established in accordance with the requirements of the grantor agencies. Such
budgets carry over until completion of the grants and, therefore, may comprise more than one
fiscal year.
-23-
June 30 2011
Capital Projects Funds
Legal authorization for expenditures of the Capital Projects Funds is provided by the related
bond ordinances and/or intergovernmental grant agreements or Connecticut State Statutes.
Capital appropriations do not lapse until the purpose for which the appropriation was made has
been accomplished or abandoned.
Note 3 - Reconciliation of Government-wide and Fund Financial Statements
Explanation of Certain Differences between the Government Fund Balance Sheet and the
Government-wide Statement of Net Assets
The details of the components included in Exhibit C are as follows:
Capitalized assets are expensed in the fund financial statements in the period the expense is
incurred while the expense is incurred over the useful life of the related asset in the
government-wide financial statements:
Land $
Net capital assets being depreciated
Net adjustment to increase fund balance to arrive
at net assets of government activities $
31,939,289
83,246,231
95,112,412
210,297,932
Long-term liabilities, including bonds payable, are not due and payable in the current period
and, therefore, are not reported in the funds. The detail of this difference is as follows:
Long-term debt $
Compensated absences
Net Other Post employment benefits obligation
Bond premium, net of accrual
Accrued interest on debt
Net adjustment to reduce fund balance to arrive
at net assets of government activities $
(67,830,000)
(3,998,593)
(928, 146)
(512,370)
(229,863)
(73,498,972)
Other long-term assets are not available to pay for current period expenditures, and, therefore,
are deferred in the funds. This amount includes the following:
Delinquent property tax and interest $ 2,196,569
Delinquent accounts receivable 14,917
Notes receivable - assessments 1,462,378
Net adjustment to increase fund balance to
arrive at net assets of government activities $ 3,673,864
======="'===
-24-
June 30 2011
Explanation of Certain Differences Between the Governmental Fund Statement of Revenues,
Expenditures and Changes in Fund Balance and the Government-wide Statement of Activities
The governmental fund statement of revenues, expenditures and changes in fund balances
includes reconciliation between net changes in fund balances - total governmental funds and
changes in net assets of governmental activities as reported in the government-wide statement
of activities. One element of that reconciliation explains that "Governmental funds report capital
outlays as expenditures. However, in the statement of activities the cost of those assets is
allocated over their estimated useful lives and reported as depreciation expense." The details
of this difference are as follows:
Acquisitions
Disposals
Depreciation
Net Adjustment to increase net changes in fund
balances to arrive at changes in net assets of
governmental activities
$ 10,098,493
(75,960)
(3,573,955)
$
Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds,
leases) provides current financial resources to governmental funds, while the repayment of the
principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net assets. Also, governmental funds report the
effect of issuance costs, premiums, discounts and similar. items when debt is first issued,
whereas, these amounts are deferred and amortized in the statement of activities." The details
of this difference are as follows:
New issuances
Payments of debt
Premium received on new issuance
Amortization of bond premiums
Net change in accrued interest
Net change in other long-term liabilities
Net adjustment to reduce net changes in fund
balances to arrive at changes in net assets of
governmental activities
-25-
$ (14,235,000)
9,825,000
(512,370)
163,885
600,169
662,518
$ (3,495,798)
June 30 2011
Note 4 - Deposits and Investments
The City's and investments are presented in the accompanying balance sheets as
follows:
Investments Total
Cash and cash equivalents:
Governmental activities $ 10,145,169 62,900 10,208,069
Business-type activities 478,350 478,350
Fiduciary funds 1,699,188 195,798 1,894,986
Investments:
Governmental activities 28,365 28,365
Fiduciary funds 1,806,951 1,806,951
Total Deposits and Investments $ 12,322,707 2,094,014 14,416,721
Deposits
The carrying amounts of the City's deposits at June 30, 2011 consist of the following:
Custodial Credit Risk
Bank Deposit Accounts
Certified Deposits
Cash on Hand
Total Deposits
$ 12,074,883
247,224
600
$ 12,322,707
As of June 30, 2011, the carrying amount of the City's deposits had bank balances of
approximately $14,143,453. The amount of the bank balance covered under federal depository
insurance was approximately $1,003,843. The remaining deposits were uninsured, however,
provisions of the Connecticut General Statutes provide for protection against loss in excess of
deposit insurance by requiring all qualified public depositories to maintain segregated collateral
for public deposits. As of June 30, 2011 approximately $1,300,000 of uninsured deposits were
collateralized under the provision.
-26-
June 30 2011
Investments
As of June 30, 2011, the City held the following investments:
Investment Type
State Investment Fund
U.S. government obligations*
Money Markets*
Corporate Bonds*
Total Investments
Held in the Plumb Library trust fund
Interest Rate Risk
Fund
General Fund $
Capital Projects
Special
Revenue
Trust Funds
Trust Funds
Trust Funds
Trust Funds
$
Fair Value
27,397
968
62,900
195,798
39,607
220,533
1,546,811
2,094,014
Weighted
Average to
Maturity
(years)
.2
.2
.2
.2
.5
.2
6.5
Risk
AAA
BBB+/AA+
Interest rate risk is the risk that changes in the market interest rates which will adversely affect
the fair value of an investment. The City has no formal policy specifically related to interest rate
risk. The City minimizes its exposure to interest rate risk by investing its operating funds in
short-term investments.
Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the
holder of the investment. This is measured by the assignment of a rating by a nationally
recognized statistical rating organization. It is the City's policy to invest only in securities that
meet the ratings requirements set by General State Statute Chapter 112, Section 7-400 as
follows:
The treasurer of any municipality, as defined in section 7-359, upon approval by the
budget-making authority, as defined in said section, of any metropolitan district, of any
regional school district, of any district as defined in section 7-324, and of any other
municipal corporation or authority authorized to issue bonds, notes or other obligations
under the provisions of the general statutes or any special act may invest the proceeds
received from the sale of bonds, notes or other obligations, or other funds, including the
general fund, as hereinafter provided:
-27-
June 30 2011
(1) In (A) the obligations of the United States of America, including the joint and several
obligations of the Federal Home Loan Mortgage Corporation, the Federal National
Mortgage Association, the Government National Mortgage Association, the Federal
Savings and Loan Insurance Corporation, obligations of the United States Postal
Service, all the federal home loan banks, all the federal land banks, all the federal
intermediate credit banks, the Central Bank for Cooperatives, The Tennessee Valley
Authority, or any other agency of the United States government, or (B) shares or other
interests in any custodial arrangement, pool or no-load, open-end management-type
investment company or investment trust registered or exempt under the Investment
Company Act of 1940, 15 USC Section BOa-1 et seq. as from time to time amended,
provided (i) the portfolio of such custodial arrangement, pool, investment company or
investment trust is limited to obligations described in subparagraph (A) of this
subdivision and repurchase agreements fully collateralized by any such obligations; (ii)
such custodial arrangement, pool, investment company or investment trust takes
delivery of such collateral either directly or through an authorized custodian; (iii) such
custodial arrangement or pool is managed to maintain its shares at a constant net asset
value or such investment company or investment trust is rated within one of the top two
credit rating categories and, for any investment company or investment trust not
managed to maintain its shares at a constant net asset value, within one of the top two
risk rating categories of any nationally recognized rating service or of any rating service
recognized by the Banking Commissioner; and (iv) the municipal corporation or authority
only purchases and redeems shares or other interests in such investment company or
investment trust through the use of, or the custodian of such custodial arrangement or
pool is, a bank, as defined in section 36a-2, or an out-of-state bank, as defined in said
section, having one or more branches in this state.
(2) In the obligations of any state of the United States or of any political subdivision,
authority or agency thereof, provided that at the time of investment such obligations are
rated within one of the top two rating categories of any nationally recognized rating
service or of any rating service recognized by the Banking Commissioner.
(3) In the obligations of the State of Connecticut, or any regional school district, town,
city, borough or metropolitan district in the State of Connecticut, provided that at the time
of investment the obligations of such government entity are rated within one of the top .
three rating categories of any nationally recognized rating service or of any rating
service recognized by the Banking Commissioner.
Investment Policies
The City maintains an investment policy, which excludes certain private purpose fund
investments. The City's investment policy strictly prohibits all funds to invest in investments not
included in Chapter 12, Section 7-400 of the State Connecticut's General Statutes.
-28-
June 30 2011
Note 5 - Receivables, Deferred Revenue and Payables
Receivables
The receivables as of June 30, 2011 for the City's individual major funds and non-major, internal
service and fiduciary funds in the aggregate, including the applicable allowance for uncollectible
accounts are as follows:
Property taxes $
Property tax interest
Intergovernmental
Accounts
Assessments
Net Total Receivables $
Deferred Revenue
General
Fund
2,145,344
341,943
314,034
73,107
751,327
3,625,755
Government funds
Non-major
Funds Total
137,389
8,431
711,051
856,871
2,145,344
341,943
451,423
81,538
1,462,378
4,482,626
Governmental funds report deferred revenue in connection with receivables for revenue that are
not considered to be available to liquidate liabilities in the current period. Governmental funds
also defer revenue recognition in connection with resources that have been received but not yet
earned. At the end of the fiscal year the components of deferred revenue and unearned
revenues reported in the governmental fund were as follows:
General Fund:
Delinquent property taxes
Delinquent interest
Delinquent receivable
Advanced tax collections
Assessments
Tax overpayments
Other Governmental Funds:
Advanced payments on grants
Assessments
Total Deferred Revenue
$
Unavailable
1,885,971
310,598
14,917
751,327
711,051
$
-29-
Unearned
3,081,691
35,384
123,803
3,240,878
Total
1,885,971
310,598
14,917
3,081,691
751,327
35,384
123,803
711,051
6,914,742
June 30 2011
Payables
Payables as of June 30, 2011 for the City's individual major funds and non-major funds were as
follows:
General Fund
Capital Projects Fund
Non-major Funds
Total governmental funds
W.P.C.A.
Total Payables
Temporary Notes Payables
Bond anticipation notes
$
Vendors
528,858
409,003
172,993
$ 1,110,854
$ __ 4-'-4-'-'-, 1-'--'8;...;;;6_
$ 1,155,040
Payroll
335,915
335,915
76,039
411,954
Cash
Overdraft
306,470
306,470
306,470
Total
864,773
409,003
479,463
1,753,239
120,225
1,873,464
The City uses short-term notes payable in anticipation of bond-issuances to provide interim
funding for various capital projects. Activity for the current fiscal year was as follows:
Beginning
Balance Issued
Bond anticipation notes:
School Construction $ 10,750,000 3,160,000
Total governmental funds $ 10,750,000 3,160,000
Note 6 - Inter-fund Receivables, Payables and Transfers
Inter-funds Receivables and Payables
Ending
Bond Issued Balance
10,750,000 3,160,000
10,750,000 3,160,000
Inter-fund receivables and payables at June 30, 2011 consisted of the following:
Receivable Fund P a ~ a b l e Fund Amount
General Fund Worker's Compensation $ 3,520,546
General Fund Capital Projects 5,722,198
General Fund Nonmajor 1,230,454
Capital Projects General Fund 324,026
Debt Service Capital Project 266,962
Special Revenue Capital Project 5,300
Special Revenue General Fund 322,500
W.P.C.A. General Fund 624,324
Total $ 12,016,310
-30-
June 30 2011
Inter-fund Transfers
The government subsidized the activities of the W.P.C.A. through the payments to the clean
water loan on behalf of the W.P.C.A. in an amount of $1,151,019.
The general fund transferred $312,500 to the open space fund in accordance with the City
Charter to subsidize a purchase of property. The general fund was then subsequently
reimbursed for this transfer by the capital projects fund.
Funds earmarked for the purchase of public safety equipment was deposited in the general fund
during the prior year, these funds, totaling $147,767 were subsequently transferred to a special
revenue fund.
Note 7 - Capital Assets
Capital assets activity for the year ended June 30, 2011 was as follows:
Beginning Ending
Balance Additions D i s ~ o s a l s Balance
Capital assets not being depreciated:
Land $ 31,713,509 482,410 256,630 31,939,289
Construction in progress 79,193,792 13,608,795 9,556,356 83,246,231
Total capital assets, not being deprec. $ 110,907,301 14,091,205 9,812,986 115,185,520
Capital assets being depreciated:
Buildings and improvements $ 93,756,439 5,303,811 99,060,250
Machinery and equipment 8,098,658 480,463 227,580 8,351,541
Infrastructure 72,342,916 36,000 72,378,916
Total capital assets being depreciated $ 174,198,013 5,820,274 227,580 179,790,707
Less: Accumulated depreciation:
Machinery and equipment 4,943,798 426,505 151,620 5,218,683
Infrastructure 25,078,555 1,447,578 26,526,133
Total accumulated depreciation $ 81,255,960 3,573,955 151,620 84,678,295
Net capital assets, being depreciated $ 92,942,053 2,246,319 75,960 95,112,412
Total capital assets, governmental $ 203,849,354 16,337,524 9,888,946 210,297,932
Depreciation expense was charged to functions of the primary government as follows:
Governmental Activities:
General government $ 82,809
Education 1,492,495
Public safety 283,818
Public works 1,646,307
Community Services 68,526
Total depreciation expense-
$ 3,573,955 governmental activities
-31-
June 30 2011
Beginning Ending
Balance Additions D i s ~ o s a l s Balance
Business-type Activities
Capital assets not being depreciated:
Construction in progress $ 424,943 675,424 1,100,367
Capital assets being depreciated:
Buildings and improvements $ 48,122,628 48,122,628
Sewers 37,525,333 37,525,333
Total capital assets being depreciated $ 85,647,961 85,647,961
Less: Accumulated depreciation:
Sewers 11,620,829 750,507 12,371,336
Total accumulated depreciation $ 32,320,829 2,215,412 34,536,241
Net capital assets being depreciated $ 53,327,132 {2,215,412} 51,111,720
Total capital assets, business-type $ 53,752,075 (1,539,988} 52,212,087
Note 8- Long-Term Liabilities
Long-term debt liabilities activity for the year ended June 30, 2011 was as follows:
Beginning Due In
Balance Additions Reductions Balance One Year
Governmental Activities:
Long-Term Debt:
General obligation bonds $ 61,155,000 14,235,000 7,560,000 67,830,000 10,315,000
G.O.B refunding bonds 2,265,000 2,265,000
Total Long-Term Debt $ 63,420,000 14,235,000 9,825,000 67,830,000 10,315,000
Less, deferred amount
on refunding
Premium on Bonds 163,885 512,370 163,885 512,370 7,110
Net long-term debt $ 63,583,885 14,747,370 9,988,885 68,342,370 10,322,110
Other Long-Term Liabilities:
Compensated absence 4,612,933 614,340 3,998,593
Net OPEB obligations 976,324 885,719 928,146 933,897 925,000
Total governmental activities
long-term liabilities $ 69,173,142 15,633,089 11,531,371 73,274,860 11,247,110
Business-type Activities:
Clean water fund notes $ 17,438,716 809,637 16,629,079 712,733
Total business-type
activities long-term liabilities $ 17,438,716 809,637 16,629,079 712,733
Total long-term liabilities $ 86,611,858 15,633,089 12,341,008 89,903,939 11,959,843
-32-
June 30 2011
General Obligation Bonds
The City 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 and are direct obligations and pledge the good faith and credit of the
government. Certain general obligation bonds are to be repaid by revenues of the enterprise
funds. These bonds generally are issued as 5 year and 1 0 year serial bonds with equal
amounts of principal maturing each year. As of June 30, 2011, the outstanding general
obligation bonded indebtedness of the City was as follows:
$8,500,000 GOB 2001, issue of 11/15/2001, due
11/15/2011, interest at 6. 75% to 7%, annual
principal payments of $800,000.
$18,085,000 GOB 2005, issue of 1/15/2005, due
11/1/2014, interest at 3% to 5%, annual
principal payments of $1,825,000.
$3,905,000 GOB 2006, issue of 10/01/2006, due
10/1/2011, interest at 4.5% to 3.5%, annual
principal payments of $785,000
$14,555,000 GOB 2006, issue of 10/01/2006, due
principal payments of $1,200,000
$2,450,000 GOB 2007, issue of 10/15/2007, due
$9,200,000 GOB 2007, issue of 10/15/2007, due
10/15/2012, interest at 3.5% to 5%, annual
$2,055,000 GOB 2008, issue of 10/15/2008, due
$2,165,000 GOB 2009, issue of 8/1/2009, due
8/1/2014, interest at 2% to 2.75%, annual
principal payments of $425,000 to 435,000
$20,950,000 GOB 2009, issue of 8/1/2009, due
principal payments of $1,775,000 to $2,625,000
$2,205,000 GOB 2010, issue of 8/1/2010, due
$12,030,000 GOB 2010, issue of 8/1/2010, due
Total general obligation bonds
-33-
$
$
General
1,050,000
8,610,000
765,000
10,555,000
980,000
7,700,000
1,255,000
1,730,000
20,950,000
2,205,000
12,030,000
67,830,000
June 30 2011
Annual debt service requirements to maturity for general obligation bonds are as follows:
Year Ended,
June 30
2012 $
2013
2014
2015
2016
2017-2021
Governmental Activity
Principal Interest
10,315,000 1,969,661
9,870,000 1,502,474
9,730,000 1,221,961
9,390,000 944,780
7,270,000 702,943
21,255,000 1,168,844
Total
$
7,510,663
Bonds authorized but unissued
Under regulations issued by the Internal Revenue Service, effective March 2, 1992, in order for
capital projects to be funded through tax-exempt debt, all projects must be appropriated and
designated as being funded through debt prior to any expenditure on these projects.
The City has authorized but unissued bonds relating to capital projects at June 30, 2011, as
follows:
Sewer
General purpose
Schools
Total
$
$
4,259,771
1,000,701
305,531
5,566,003
A portion of bonds authorized and unissued will be reduced by grants received.
Clean Water Fund Loans Payable
The City has an outstanding balance on loans payable to the State of Connecticut's Department
of Environmental Protection, under its Clean Water Fund Program, for sanitary sewer projects.
The individual loans were as follows:
Note
165-C
104-C
Total Clean Water Fund Loans
Closing Date
August 19,2008
May 30,2008
-34-
$
$
Balance
2,178,484
14,450,595
16,629,079
June 30 2011
These loans bear interest at 2% per annum and the annual debt service requirements to
maturity are as follows:
Year Ended. Business-type Activity
June 30,
2012
2013
2014
2015
2016
2017-2020
2021-2023
2024-2028
$
Principal
825,982
842,654
859,662
877,014
894,716
4,751,871
5,251,192
2,325,988
$ ==1=6==,6=29='=07=9=
Note 9 - Commitments and Contingencies
Lawsuits
Interest
325,037
308,365
291,357
274,005
256,303
1,003,227
503,905
51,048
3,013,247
There were several personal injury, negligence and personnel related lawsuits pending against
the City. The outcome and eventual liability of the City, if any in these cases, is not known at
this time: Based upon consultation with counsel, the City's management estimates that
potential claims against the City not covered by insurance resulting from such litigation would
not materially affect the financial position of the City.
Operating Contracts
School transportation
The City contracts for the transportation of students. The future payments the City is obligated
to pay the bus company under the current contract is based on per bus per day charges. The
current contract will end on June 30, 2013. The expense for the 2011 fiscal year was
$2,337,665.
Municipal solid waste management services contract
The City has entered into the municipal solid waste management services contract, as
amended, (the Service Contract) with the Connecticut Resources Recovery Authority (the
Authority) pursuant to which it participates with four other Connecticut Municipalities (the five
constituting the Contracting Municipalities), in the Shelton Resource Recovery System (the
System). The System consists of mass-burn solid waste, recovery resource steam and electric
generation facility (the Facility) located in the City of Shelton, Connecticut and various
improvements and facilities related thereto, including landfills. The facility is complete and
presently receiving waste from the Contracting Municipalities.
Under the Service Contract, the City is required to deliver, or cause to be delivered, to the
System solid waste generated within its boundaries with a minimum commitment of 18,102 tons
per year and to pay a uniform per ton disposal service payment (the Service Payment). The
current fee is $61 per ton. The aggregated minimum commitment of the five Contracting
Municipalities is 265,000 tons per year. The City's Service Payment commitment is a "put-or-
-35-
June 30 2011
pay" commitment in that if the aggregate minimum commitment of the Contracting Municipalities
is not met by the total deliveries of all the Contracting Municipalities in any year, the City must
pay the Service Payment for its full portion of the aggregate minimum commitment even if it did
not deliver that full portion.
The service payment applicable in any contract year is calculated by estimating the net cost of
operation, which is the cost of operation less revenues other than Service Payments, as such
terms are defined in the Service Contract. The sum of all Service Payments and other
payments from the Contracting Municipalities are required to be sufficient to pay or provide for
the net cost of operations.
The City has pledged its full faith and credit to the payment of Service Payments and has also
agreed to enforce or levy and collect all taxes, cost sharing or other assessments or charges.
and take all such other action as may be necessary to provide for the payment of the Service
Payments.
Construction Contracts
The City has several construction contracts in progress at June 30, 2011. A summary of the
larger amounts remaining in these contracts is as follows:
Education projects $ _ _..:_7 4..:.::5<.>..:,0:::..:::0:..:::.0
Total $ 745.000
Risk Management and Self-Insurance
The City is exposed to various risks of loss including torts, theft of, damage to, and destruction
of assets; error and omissions; injuries to employees; employee health; and natural disasters.
The City generally obtains commercial insurance for these risks, but has chosen to retain the
risks for workers' compensation, including heart and hypertension, and physical damage of the
City's vehicles.
The worker's compensation fund purchases a self insured retention worker's compensation
excess policy for claims exceeding $500,000. All other claims are funded by the General Fund.
Payments to the fund are estimated based on payroll amounts, job classification rates,
experience and second injury fund assessments.
Under Public Act 9-342, health insurance for retired teachers, subsidy equal to the equivalents
flat dollar premium amount of Blue Cross 65/Biue Shield 65 is paid by the State directly to the
local school districts. Where it is applied to reduce premium payments of the retired members'
1% supplemental contributions, since July 1, 1989, have been directly to a dedicated health
insurance fund. There is no cost to the City.
-36-
June 30 2011
Changes in the balance of claims liabilities for the worker's compensation and heart and
hypertension were as follows:
Claims Claims and Claims
Fiscal Year Ended Payable Changes in Claims Payable
June 30, Beginning Estimates Paid Ending
Worker's Compensation
2010 $ 1,429,075 525,436 309,581 1,644,930
2011 1,644,930 162,441 203,781 1,603,590
Heart and Hypertension
2010 440,202 1,072,286 1,122,813 389,675
2011 389,675 1,080,419 1,069,339 400,755
Total Internal Service
2010 1,869,277 1,597,722 1,432,394 2,034,605
2011 2,034,605 1,242,860 1,273,120 2,004,345
Note 10 - Employee Retirement Plans
Merit Retirement Plan
The City of Shelton maintains a contributory money purchase defined contribution pension plan
(City of Shelton Money Purchase Plan) which covers merit employees who work more than 20
hours per week and more than 5 months per year, except policemen who participate in a
defined benefit pension plan administered by the Connecticut Municipal Emplqyees' Retirement
Fund, and teachers who participate in a contributory retirement plan administered by the
Connecticut State Teachers' Retirement System.
The defined contribution pension plan provides pension benefits in return for services rendered,
provides an individual account for each participant, and specifies how contributions to the
individual's account are to be determined instead of specifying the amount of benefits the
individual is to receive. Under a defined contribution pension plan, the benefits a participant will
receive depend solely on the amount contributed to the participant's account, the returns earned
on investments of those contributions, and forfeitures of other participant's benefits that may be
allocated to such participant's account.
Employees are eligible to participate once they have completed one year of continuous service,
with no minimum age requirement. The City contributes an amount equal to 6% of the
employee's annual base wages, while employees must contribute 3%. Employees may also
make voluntary contributions up to 1 0% of annual wages.
Contributions made by an employee vest immediately and contributions made by the City for
each employee (and interest allocated to the employee's account) are 20% vested for each year
of service until 100% vested after 5 years of service. Both participant and employer
contributions are invested in a fixed income interest accumulation account designed under the
plan.
-37-
June 30 2011
The City's total payroll under the plan, excluding the Board of Education, for the fiscal year
ended June 30, 2011 was $7,251,767. The City's contribution was calculated using a salary
amount of $435,106 covering 6% merit plan employees. The employee's contribution was
$217,553 (3.0% of covered payroll).
No pension provision changes occurred during the year that affected the required contributions
to be made by the City or its employees. The City of Shelton's Money Purchase Plan held no
securities of the City or other related parties during, or as of the close of, the fiscal year.
Policemen's Retirement Fund
The policemen participate in the Municipal Employees' Retirement Fund (MERF), a cost-sharing
multiple-employer public employee retirement system (PERS) established by the State of
Connecticut and administered by the State Retirement Commission to provide retirement and
disability benefits, annual cost-of-living adjustments and death benefits to the employees and
beneficiaries of participating municipalities. Chapter 113 Part II of the General Statutes of
Connecticut, which can be amended by legislative action, establishes PERS benefits, member
contribution rates and other plan provisions. MERF is considered to be a part of the State of
Connecticut financial reporting entity and is included in the State's financial reports as a pension
trust fund. Those reports may be obtained by writing to the State of Connecticut, Office of the
State Comptroller, 55 Elm Street, Hartford, Connecticut 06106 or by calling 860-702-3480.
Funding Policy- Plan members are required by State Statute to contribute 2-1/4% of earnings
upon which Social Security tax is paid plus 5% of earnings on which no Social Security tax is
paid. Each participating municipality is required to contribute at an actuarially determined rate.
The current rate is 15.3% of annual covered payroll. The contribution requirements of the City
are established and may be amended by the State Retirement Commission. The City's
contributions to MERF for the years ended June 30, 2011, 2010 and 2009 were $781,964,
$692,052, and $549,239 respectively, equal to the required contributions for each year.
Teachers' Retirement
All City of Shelton Board of Education certified employees participate in the State of Connecticut
Teachers' Retirement System under Section 10.183 of the General Statutes of the State of
Connecticut. A teacher is eligible to receive a normal retirement benefit if he or she has: 1)
attained age 60 and has accumulated 20 years of credited service in the public schools of
Connecticut, or 2) attained any age and has accumulated 35 years of credited service, at least
25 years of which are services in the public schools of Connecticut.
The Board of Education withholds 7.25% of all teachers' annual salaries and transmits the funds
to the State Teachers' Retirement Board. For the year ended June 30, 2010 there were 416
teachers from the City of Shelton participating in the plan, and they contributed $2,300,263 to
the system. Teacher payroll subject to retirement amounted to $31,727,765.
The retirement system for teachers is funded by the State based upon the recommendation of
the Teachers' Retirement Board. The City does not have any liability for teacher pensions. For
the year ended June 30, 2011 the City has recorded, in the General Fund, intergovernmental
revenue and education expenditures in the amount of $5,044,716 as payments made by the
State of Connecticut on behalf of the City.
-38-
June 30 2011
Postemployment Benefits Other than Pension
Plan description
The City is the administrator of a single-employer, contributory, defined benefit OPES plan. The
OPES plan provides post-employment medical, dental, and life insurance benefits to eligible
retirees and their spouses. A bi-annual actuarial valuation is made to determine whether the
contributions are sufficient to meet the plan obligations. The OPES does not issue a separate,
stand-alone financial report.
Classes of employees covered
As of December 31, 2008, the date of the last actuarial report, the plans' membership consisted
of:
Active Employees
Retired Employees, spouses, and beneficiaries
Retired Employees with lifE? insurance
Total
Funding Policy
BOE
482
109
31
622
City
54
18
3
75
Total
536
127
34
697
The obligations of the plan members, employers and other entities are established by action of
the City pursuant to applicable collective bargaining and employment agreements. The required
contribution rate of the employer and the members varies depending on the applicable
agreement. The City currently contributes enough money to the plan to satisfy current
obligations on a pay-as-you go basis. The costs of administering the plan are paid by the City.
The OPES obtained its latest actuarial valuation as of December 31, 2008 upon which the
annual required contribution for the fiscal year ended June 30, 2010 was determined based on a
4.5% discount rate.
Actuarial
Valuation
Date
12/31/08
Actuarial
Value of
Assets
(a)
Supplementary Information
Schedule of Funding Progress
Based on the Actuarial Value of Assets
Actuarial
Accrued Unfunded
Liability AAL Funded Covered
(AAL) (UAAL) Ratio Payroll
{b} {b-a} {alb} {c}
13,491,074 13,491,074 -% N/A
-39-
UAAL as a
Percentage of
Covered Payroll
{b-a}/{c}
N/A
June 30 2011
The schedule of funding progress, which will be presented as required supplementary
information following the notes to the financial statements after the second year, presents
multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
The accrued liability is equal to the portion of the present value of future benefits that is
allocated to years of service before the valuation date. The accrued liability is amortized over
30 years using an amortization method of payments increasing at 3.5% per year.
The projection of future benefit payments for an ongoing plan involves estimates of the value of
reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumptions about future employment, mortality, and the healthcare
cost trend rate. Amounts determined regarding the funding status of the plans and the annual
required contributions of the employer are subject to continual revision as actual results are
compared with past expectations and new estimates are made about the future.
Year Ended
June
2009
2010
2011
$
Schedule of Employer Contributions
Annual Required
Contribution Percentage Contributed
885,719
885,719
885,719*
0
93.8
104.8
* Estimated amount, based on prior years and not but an independent actuarial study
Annual OPEB Cost and Net OPEB Obligation
%$
Actual
Contribution
0
831,672
(928, 146)
The City's annual post-employment benefit (OPEB) cost (expense) is calculated based on the
annual required contribution of the employer (ARC). The City has engaged an actuary to
calculate the ARC and related information per the provisions of GASB Statement 45 for
employers in plans with more than 1 00 total plan members. The ARC represents a level of
funding that, if paid on an ongoing basis, is projected to cover normal costs each year and to
amortize any unfunded liabilities (or funding excess) over a period not to exceed thirty years.
The calculation of the change in the net OPEB obligation for the year ended June 30,
2011 follows:
Actuarially Required
1. Contribution (ARC) $ 885,719
2. Interest on NOO *
3. Adjustment To (ARC) *
4. Annual OPEB Cost (AOC) $ 885,719
5. Contribution Made 928,146
6. Increase In NOO $ (42,427)
7. NOO Beginning of Year 976,324
8. NOO End of Year $ 933,897
-40-
June 30 2011
Plan Eligibility:
Board of Education Groups:
Teacher/Administrator: Per Teachers' Retirement Boards requirements
Cafeteria: No post-retirement benefits
All Others: Age 60 and 1 0 years of service, or any age with 25 years of service
City Groups:
NU Police: Age 55 and 15 years of service, or any age with 25 years of service
Police Union: Age 55 and 15 years of service, or any age with 25 years of service
All Others: No post-retirement benefits
Benefit Types:
Medical and prescription drug benefits are provided to all eligible pre-Medicare retirees through
a variety of plans offered by HealthNet, Medicare retirees are offered 3 Medicare supplemental
plans through Anthem. Dental (Assurant Dental) coverage is offered but it is 100% retiree paid.
Vision benefits are provided through some medical plans. Life insurance benefits are provided
through Boston Mutual.
Duration of Coverage:
City: Coverage continues until age 65. Two retirees are covered by special contracts and are
covered for life.
BOE: Coverage continues for life. Most retirees over age 65 move to the State Stirling
Medicare Plan offered through the Teachers Retirement Board and therefore no costs are
assumed after age 65.
Dependent Benefits:
Medical, prescription drugs, dental (optional) and vision (provided with some medical plans).
Dependent Coverage: Same as Retirees.
Retiree Contributions: Premium rates and retiree contributions are as of July 1, 2009 and are
summarized below.
-41-
June 30 2011
Retiree Premium Cost Sharing
BOE
Teachers and Admin
CMS & Nurse
Paras and Cafeteria
All Others
City
Police Union and NU Police
All Other
Retiree or TRB Pays
1 00% of Premium
1 02% of Premium
No post-retirement medical coverage
1 00% of Premium
Retiree Pays
25% of Base Plan premium if single or 40% of
Base Plan premium if married.
No post retirement medical coverage
Actuarial Assumptions and Actuarial Cost Method
Valuation Date: December 31, 2008
Actuarial Cost Method: Projected Unit Credit
Asset Valuation Method: Market Value
Amortization Method: Payments increasing at 3.5%
Remaining Amortization Period: 30 years as of July 1, 2009
Discount Rate: 4.5% pay-as-you-go
Investment Rate of Return: 4.5% pay-as-you-go
Inflation Rate: 3.5%
Per Capita Cost Development: Per capita costs were based on the fully-insured premium
rates effective July 1, 2008. Actuarial factors were applied to the premium to estimate individual
retiree and spouse cost by age and by gender.
Mortality Rates:
BOE
City (Pre-Retirement)
City (Post-Retirement)
RP-2000 Combined Healthy Annuitant
Mortality Table
Rates from the July 1 , 2007 valuation report of
the Connecticut Municipal Employees'
Retirement System
1983 Group Annuity Mortality Table set back
one year.
-42-
June 30 2011
Termination Rates Before Retirement: Assumptions regarding mortality, disability, withdrawal
and retirement are taken from the July 1, 2007 valuation of the Connecticut Municipal
Employees' Retirement System (City) or the July 1, 2008 valuation of the Connecticut State
Teachers' Retirement System (BOE).
Medical/Drug Cost Trend Rates: Healthcare trend measures the anticipated overall rate at
which health plan costs are expected to increase in future years. The rates are "net" and are
applied to the net per capita costs. The trend for a particular plan year is the rate that must be
applied to that year's cost to yield the next year's projected cost. The medical/drug cost trend
rate, as of the valuation date of December 31, 2008, is 9.0% graded to 5.0% over 6 years.
Retiree Contribution Increase Rate: Retiree contributions are expected to increase with
medical trend.
Participation and Coverage Election: 100% of active employees with coverage are assumed
to elect retiree coverage.
100% of retirees over age 65 are assumed to remain in their current medical plan for life.
For future retirees and current retirees of BOE under age 65, 100% are assumed to be eligible
for Medicare and are assumed to enroll in the Stirling Medicare plan offered through the
Teachers Retirement Board (TRB) and thus represent no liability to the BOE once they reach
age 65.
Plan Design: Development of plan liabilities was based on substantive plan benefits.
Administrative Expenses: Administrative expenses for insured plans were assumed to be
included in the fully insured premium rates.
Annual Maximum Benefits: No increase in the annual maximum benefit levels was assumed.
Lifetime Maximum Benefits: No information was available regarding accumulations toward
lifetime maximum benefits and no such accumulations were assumed.
Missing Participant Data: A missing census item for a given participant was assumed to equal
the average value of that item over all other participants of the same status for whom the item is
known.
-43-
June 30 2011
Note 11 - Fund Deficits and Restrictions to Net Assets
Fund Deficits
The City has the following Fund Deficits at June 30, 2011 and expects to eliminate the deficits in
the future as follows:
Fund
Homeland Security Grant
Education Grants
Worker's Compensation
Capital Projects
Note 12 - Subsequent Events
General Obligation Refunding Bond
Deficit
$ 26,236
100,445
5,524,515
9,041,573
Plan For Elimination
Future grant receipts
Future grant receipts
Future employer payments
Future general obligation bonds
On August 10, 2011, the City issued a general obligation refunding bond in the amount of
$20,460,000. The Bond will be paid over a 6 year period with an interest rate of 2% to 5%. The
bond will refund a portion of the 2001, 2005, 2006 and 2007 general obligation bonds.
General Obligation Bond
On July 21, 2011, the City issued a general obligation bond in the amount of $2,225,000. The
Bond will be paid over a 5 year period with an interest rate of 2.0%. The bond will fund Capital
projects.
General Obligation Bond Anticipation Note
On July 21, 2011, the City issued a note in anticipation of a general obligation bond in the
amount of $8,820,000. The Bond will be paid in full on August 1, 2012 with an interest rate of
1.0%.
-44-
GENERAL FUND
The General Fund is used to account for resources traditionally associated with government
which are not required legally or by sound financial management to be accounted for in
another fund.
GENERAL FUND REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL (NON-GAAP BUDGETARY BASIS)
Budgeted Amounts
Original Final
PROPERTY TAXES
Current years' levy $ 95,509,500 95,509,500
Prior years' levies 639,000 639,000
Interest and penalties 378,000 378,000
Statutory refunds {140,000} {140,000}
Total property taxes $ 96,386,500 96,386,500
INTERGOVERNMENTAL
State grants for education $ 5,205,105 5,205,105
Other state grants 2,201,282 2,201,282
Total intergovernmental $ 7,406,387 7,406,387
CHARGES FOR SERVICES
Licenses and permits $ 1,096,599 1,096,599
Fines and forfeits 30,500 30,500
Charges 824,870 1,004,870
Total charges for services $ 1,951,969 2,131,969
INVESTMENT INCOME $ 100,000 100,000
MISCELLANEOUS REVENUES $ 1,136,447 1,136,447
OTHER FINANCING SOURCES
Appropriation of fund balance $ 4,393,096 4,393,096
Total other financing sources $ 4,393,096 4,393,096
Total revenue & other financing sources $ 111,374,399 111,554,399
-45-
SCHEDULE 1
Budgetary Positive/
Basis (Negative)
96,022,931 513,431
1,145,666 506,666
578,750 200,750
(140,186} {186}
97,607,161 1,220,661
5,281,366 76,261
1,621,492 {579,790}
6,902,858 (503,529)
1,160,975 64,376
25,917 (4,583)
1,082,858 77,988
2,269,750 137,781
333,475 233,475
1,325,265 188,818
4,393,096
4,393,096
112,831,605 1,277,206
CITY OF SHELTON, CONNECTICUT SCHEDULE 2
Page 1 of 2
GENERAL FUND EXPENDITURES, ENCUMBRANCES AND OTHER FINANCING USES -
BUDGETARY BASIS- BUDGET AND ACTUAL
Budgeted Amounts Budgetary Positive/
Original Final Basis (Negative)
.GENERAL GOVERNMENT
Administrative $ 449,693 467,711 444,444 23,267
Employee resources 6,502,055 6,445,647 4,924,070 1,521,577
Legislative 133,880 137,114 114,062 23,052
Board of ethics 1,500 1,500 1,500
Elections 134,002 163,222 161,487 1,735
Inland wetlands 84,617 84,617 79,013 5,604
Economic development committee 65,200 65,655 13,817 51,838
Economic development 90,000 90,000 90,000
Planning and zoning 325,312 326,607 320,106 6,501
Probate court 11,300 11,300 9,123 2,177
Elected/appointed officials 18,450 18,450 15,525 2,925
Conservation commission 39,852 43,014 25,833 17,181
City/Town clerk 416,806 416,806 324,103 92,703
Drug and alcohol commission 200 200 1,200 (1 ,000)
Appeals board 2,500 2,500 2,500
Zoning appeals board 18,060 18,410 17,308 1,102
Legal services corporate counsel 181,160 181,160 137,841 43,319
Management information systems 329,582 329,582 267,624 61,958
Assessor 450,988 497,476 435,374 62,102
Tax collector 321,202 321,202 270,070 51,132
Purchasing 314,320 314,320 267,239 47,081
Public r.isk management 1,863,692 1,916,656 1,910,695 5,961
Accounting and control 510,840 510,840 490,023 20,817
Miscellaneous 1,142,375 1,326,475 903,764 422,711
Board of Aldermen 176,200 250 250
Total general government $ 13,583,786 13,690,714 11,222,721 2,467,993
PUBLIC SAFETY
Public safety and energy services $ 62,936 70,382 18,549 51,833
EMS commission 117,884 117,884 108,810 9,074
Fire marshal 298,949 298,949 208,324 90,625
Animal control 113,186 113,186 88,151 25,035
Fire department 758,326 768,636 484,149 284,487
Police department 6,253,027 6,274,556 5,163,324 1,111,232
Total public safety $ 7,604,308 7,643,593 6,071,307 1,572,286
PUBLIC WORKS
Municipal parking authority $ 5,000 5,000 5,000
Building department 232,129 251,659 173,961 77,698
Highways and bridges 2,791,860 2,801,845 2,294,300 507,545
Road repairs 125,000 125,900 448,929 (323,029)
Public works director 21,805 21,805 20,431 1,374
Engineering 269,878 269,878 252,945 16,933
Tree warden 85,000 85,000 62,855 22,145
Recycling program 463,139 463,139 399,529 63,610
Sanitation 2,619,878 2,619,950 2,193,105 426,845
Total public works $ 6,613,689 6,644,176 5,846,055 798,121
-46-
(Continued)
Page 2 of 2
GENERAL FUND EXPENDITURES, ENCUMBRANCES AND OTHER FINANCING USES -
BUDGETARY BASIS- BUDGET AND ACTUAL
Budgeted Amounts Budgetary Positive
HEALTH AND WELFARE
Public health $ 222,753 222,753 222,752 1
Total health and welfare $ 222,753 222,753 222,752 1
CULTURE AND RECREATION
Recreation $ 1,493,852 1,493,852 1,379,070 114,782
Senior center 303,266 303,266 213,772 89,494
Youth service bureau 203,540 203,540 188,885 14,655
Library 1,077,658 1,077,658 948,698 128,960
Community development 66,001 66,001 63,004 2,997
Outside agency contributions 324,275 324,275 322,625 1,650
Total cultural and recreation $ 3,468,592 3,468,592 3,116,054 352,538
EDUCATION
Board of Education $ 63,100,000 63,100,000 63,045,971 54,029
Total education $ 63,100,000 63,100,000 63,045,971 54,029
OTHER
Utilities $ 2,689,400 2,691,400 2,303,492 387,908
Municipal property maintenance 868,598 869,898 797,069 72,829
Total other $ 3,557,998 3,561,298 3,100,561 460,737
DEBT SERVICE
Principal $ 7,560,000 7,560,000 9,825,000 (2,265,000)
Interest 4,512,253 4,512,253 2,247,249 2,265,004
W.P.C.A transfer 1,151,020 1,151,020 1,151,019 1
Total debt service $ 13,223,273 13,223,273 13,223,268 5
Total expenditures and other financing uses $ 111,374,399 111 ,554,399 105,848,689 5,705,710
-47-
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds - are used to account for specific revenues that are legally
restricted to expenditures for particular purposes.
Town Road Aid- is used to account for the State funded program.
Conservation and Open Space - maintains monies reserved for the purchase of land to
be used for open space.
Vehicle Risk Retention - is used to account for revenues received from the vehicle
retention risk fund.
Street Opening and Final Patch - is used to account for the revenues and expenditures
related to the street opening and final patch program.
Valley Street Crime B - is used to account for revenues and expenditures related to the
Valley Street Crime Division B program.
Emergency Medical Service Training - is used to account for revenues and expenses
related to the emergency medical service training program.
Police Seizure Fund - is used to account for the funds that are seized by the police in the
City.
Surface Transportation - is used to account for expenses and income received from
surface transportation.
Uninsured Loss Fund- is used to account for unexpected insurance claim funds.
Pine Rock Park- is used to account for the operation of Pine Rock Park.
Gristmill Lane Maintenance - is used to account for the renovation of the Gristmill Lane.
Asset Seizure Account- is used to account for assets seized from the State and Federal
Governments.
Pine Rock Improvements - is used to account for Pine Rock improvements.
Valley Regional Adult Ed - is used to account for the funds received for adult education
which includes some grant money.
Small Cities Grant - is used to account for grants received under the small city grant
program.
Trails Committee - is used to account for funds collected through the trails committee.
Sewer Assessments - is used to account for revenues received from the use of sewers
from the people in the City.
One Time Use Grant - is used to account for the one time use grant revenues.
CRRA Consent Order- is used to account for revenues received under the CRRA.
DWI Grant- is used to account for state and federal grants received for DUI enforcement.
Radio Grant- is used to account for grants received to buy new radios for the City.
Senior Center - is used to account for revenues received from the operations of the
senior center.
Homeland Security Grant - is used to account for federal grant money received under
the homeland security grant.
Recreation Path Grants- is used to account for grants received for recreation paths, in
the City.
COPS Tech Earmark- is account for funds earmarked for police equipment.
Housatonic River Estuary - is used to account for revenue and expenses as a result of
the Housatonic River estuary which includes some grant money.
Dog Fund - is used to account for revenue from dog license fees and related
expenditures.
School Lunch - is used to account for operations of the school lunch program.
Educational Grants - is used to account for education related grants from State and
Federal Governments.
Athletic Association - is used to account for funds received under the vocational trade
account.
Summer School - is used for to account for revenues and expenses received under the
summer school program.
Play to Pay - is used to account for revenues and expenses received under Saturday
exploration and enrichment.
Comp Voice Stress Analyzer - is used to account for revenues and expenses received
under the voice stress analyzer program.
Shelton Housing Authority - is used to account for revenues and expenditures received
under the housing authority's activities.
Town Clerk- is used to account for revenues received as a result from the operations of
the town clerk office.
Conservation Commission - is used to account for revenues and expenses received as
a result of the conservation commission's activities.
Smoke Detector Grant - is used to account for grants received from State and Federal
governments, in connection with the smoke detector grant.
Debt Service - is used to account for revenues and expenses used for the purpose of
debt payments and revenues.
Permanent Funds
Edward C. Finn Scholarship - is used to account for the scholarship fund given to a high
school student.
David Clark Scholarship - is used to account for the scholarship fund given to a high
school student.
Paul Gerst Memorial - is used to account for the donations and additional funds for the
Paul Gerst memorial.
Lucy Beard - is used to account for a scholarship fund given to a high school.
Hanson Edwards Legacy - is used to account for a scholarship fund given to a high
school student.
Permanent War Memorial Scholarship - is used to account for a scholarship fund given
to a high school student.
Mary & Charles Lavietes Memorial - is used to account for the donations and additional
funds for Mary & Charles Lavietes Memorial.
COMBINING BALANCE SHEET
NON-MAJOR GOVERNMENTAL FUNDS
June 30, 2011
ASSETS
Receivables, net
Due from other funds
Inventory
Total assets
LIABILITIES AND FUND BALANCES (DEFICITS)
Liabilities
Accounts payable and accrued liabilities
Deferred revenue
Due to other funds
Total liabilities
Fund Balance (Deficit)
Nonspendable
Restricted for:
Debt service
Committed for:
Open Spaces
Special Projects
Assigned
Unassigned
Total fund balance (deficit)
Total liabilities and fund balances (deficits)
$
$
$
$
$
$
$
-48-
Special Revenue
Town Conservation Vehicle
Road and Risk
Aid Open Space Retention
38,481 92,395
312,500
38,481 92,395
280,234
32,946
32,946 280,234
32,266
5,535
92,395
5,535 32,266 92,395
38,481 92,395
Street Valley
Opening and Street
Final Patch Crime B
177,415 46,927
8,431
185,846 46,927
38,717
38,717
147,129 46,927
147,129 46,927
185,846 46,927
Special Revenue
Em. Medical
Service
Training
4,414
4,414
4,414
4,414
4,414
-49-
Police
Seizure
Fund
13,856
13,856
13,856
13,856
13,856
SCHEDULE 3
Page 1 of 6
Surface
Transportation
3,547
3,547
3,547
3,547
3,547
(Continued)
NON-MAJOR GOVERNMENTAL FUNDS, Continued
June 30, 2011
ASSETS
Receivables, net
Inventory
Total assets
LIABILITIES AND FUND BALANCE (DEFICITS)
Liabilities
Deferred revenue
Due to other funds
Total liabilities
Nonspendable
Restricted for:
Debt service
Committed for:
. Open Spaces
Special Projects
Assigned
Unassigned
-50-
Special Revenue
Uninsured Pine Gristmill
Loss Rock Lane
Fund Park Maintenance
$ 502,948 297,754 1,867
15,000
$ 517,948 297,754 1,867
$
$
$
517,948 297,754 1,867
$ 517,948 297,754 1,867
$ 517,948 297,754 1,867
Asset Pine
Seizure Rock
Account Improvements
88,113 21,515
88,113 21,515
88,113
21,515
88,113 21,515
88,113 21,515
Special Revenue
V. Regional Small
Adult Cities
Education Grant
460,064 57,374
460,064 57,374
69,532
26,090
334,256
403,788 26,090
56,276 31,284
56,276 31,284
460,064 57,374
-51-
SCHEDULE 3
Page 2 of 6
Trails
Committee
5,287
5,287
5,287
5,287
5,287
(Continued)
June 30, 2011
ASSETS
Receivables, net
Inventory
Total assets
Liabilities
Deferred revenue
Due to other funds
Total liabilities
Nonspendable
Restricted for:
Debt service
Committed for:
Open Spaces
Special Projects
Assigned
Unassigned
Total liabilities and fund balances {deficits)
-52-
Special Revenue
One CRRA
Sewer Time Use Consent
Assessments Grant Order
$ 290,894 1,468 10,732
711,051
$ 1,001,945 1,468 10,732
$ 64,529
711,051
$ 775,580
$
226,365 1,468 10,732
$ 226,365 1,468 10,732
$ 1,001,945 1,468 10,732
DUI
Grant
14,194
14,194
14,194
14,194
14,194
Radio
Grant
Special Revenue
Senior
Center
9,375
9,375
9,375
9,375
9,375
Homeland
Security
Grant
26,236
26,236
(26,236)
(26,236)
-53-
SCHEDULE 3
Page 3 of6
Recreation
Path
Grants
952
952
952
952
952
(Continued)
June 30, 2011
ASSETS
Receivables, net
Inventory
Total assets
Liabilities
Deferred revenue
Due to other funds
Total liabilities
Nonspendable
Restricted for:
Debt service
Committed for:
Open Spaces
Special Projects
Assigned
Unassigned
-54-
Special Revenue
COPS Housatonic
TECH River Dog
Earmark Estuary Fund
$ 79,112 4,851 5,340
$ 79,112 4,851 5,340
$ 215
$ 215
$
79,112
4,636 5,340
$ 79,112 4,636 5,340
$ 79,112 4,851 5,340
School Educational
Lunch Grants
221,076 595,980
64,239
300
22,856
244,232 660,219
73,045 760,664
73,045 760,664
23,156
148,031
(100,445)
171,187 (100,445)
244,232 660,219
Special Revenue
Athletic Summer
Association School
157,553 91,070
157,553 91,070
6,991
6,991
157,553 84,079
157,553 84,079
157,553 91,070
-55-
SCHEDULE 3
Page4 of6
Pay to
Play
2,479
2,479
2,479
2,479
2,479
(Continued)
June 30, 2011
ASSETS
Receivables, net
Inventory
Total assets
Liabilities
Deferred revenue
Due to other funds
Total liabilities
Nonspendable
Restricted for:
Debt service
Committed for:
Open Spaces
Special Projects
Assigned
Unassigned
Special Revenue
CompVoice Saturday Shelton
Stress Exploration Housing
A n a l ~ e r & Enrichment Authority
$ 1,051 168,787
$ 1,051 168,787
$
18,565
$ 18,565
$
1,051 150,222
$ 1,051 150,222
$ 1 168,787
-56-
Special Revenue
Smoke
Town Conservation Detector
Clerk Commission Grant
97,390 116
97,390 116
3,987
3,987
93,403 116
93,403 116
97,390 116
Total
Sp. Rev
Funds
3,564,377
783,721
327,800
22,856
4,698,754
479,463
737,141
1,230,454
2,447,058
23,156
32,266
186,616
2,136,339
(126,681}
2,251,696
4,698,754
-57-
SCHEDULE 3
Page 5 of6
Debt
Service
266,962
266,962
266,962
266,962
266,962
(Continued)
June 30, 2011
ASSETS
Receivables, net
Inventory
Total assets
Liabilities
Deferred revenue
Due to other funds
Total liabilities
Nonspendable
Restricted for:
Debt service
Committed for:
Open Spaces
Special Projects
Assigned
Unassigned
$
$
$
$
$
$
$
-58-
Permanent Funds
Edward C. David Paul
Finn Clark Gerst
Scholarship Scholarship Memorial
2,225 995 888
2,225 995 888
2,225 995 888
2,225 995 888
2,225 995 888
Permanent Funds
Permanent
Hanson War Mary & Charles
Lucy Edwards Memorial Lavietes
Beard Legacy Scholarship Memorial
1,446 1,002 40,440 821
1,446 1,002 40,440 821
1,446 1,002 40,440 821
1,446 1,002 40,440 821
1,446 1,002 40,440 821
-59-
Total
Permanent
47,817
47,817
47,817
47,817
47,817
SCHEDULE3
Page 6 of6
Total
Nonmajor
Governmental
Funds
3,612,194
783,721
594,762
22,856
5,013,533
479,463
737,141
1,230,454
2,447,058
70,973
266,962
32,266
186,616
2,136,339
(126,681)
2,566,475
5,013,533
'"
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES (DEFICITS)- NON-MAJOR GOVERNMENTAL FUNDS
Special Revenue
Town Conservation
Road and
Aid Open Space
Revenues
Intergovernmental $ 250,961
Charges for services
Investment income 73 104
Other 17,724
Total revenues $ 251,034 17,828
Expenditures
Public safety $
Public works 229,913
Culture and recreation
Education
Other 312,500
Total expenditures $ 229,913 312,500
Revenue over (under) expenditures $ 21,121 (294,672)
Other Financing Sources
Transfers in $ 312,500
Transfers (out)
Total other financing sources $. 312,500
Changes in Fund Balances (Deficits) $ 21,121 17,828
Fund Balances (Deficits)- beginning (15,586) 14,438
Fund Balances (Deficits) -ending $ 5,535 32,266
-60-
Vehicle
Risk
Retention
303
6,102
6,405
1,955
1,955
4,450
4,450
87,945
92,395
Special Revenue
Street Valley E. Medical
Opening and Street Service
Final Patch Crime B Training
247 68 7
31,615 517
31,862 585 7
971
7,610
7,610 971
24,252 (386) 7
24,252 (386) 7
122,877 47,313 4,407
147,129 46,927 4,414
Police
Seizure
Fund
4,395
24
4,419
13,304
13,304
(8,885)
(8,885)
22,741
13,856
-61-
SCHEDULE4
Page 1 of6
Surface
Transportation
5
5
5
5
3,542
3,547
(Continued)
CHANGES IN FUND BALANCES (DEFICITS)- NON-MAJOR GOVERNMENTAL FUNDS, (Continued)
Special Revenue
Uninsured Pine
Loss Rock
Fund Park
Revenues
Intergovernmental $
Other 20,899
Total revenues $ 21,646 422
Expenditures
Public safety $
Public works
Education
Other 53,644
Total expenditures $ 53,644
Revenue Over (Under) Expenditures $ (31,998) 422
Transfers in $
Transfers (out)
Total other financing sources $
Changes in Fund Balances (Deficits) $ (31,998) 422
Fund Balances (Deficits)- beginning 549,946 297,332
Fund Balances (Deficits) -ending $ 517,948 297,754
-62-
Gristmill
Lane
Maintenance
3
3
3
3
1,864
1,867
Asset Pine
Seizure Rock
Account Improvement
46,125
83 31
46,208 31
46,208 31
46,208 31
41,905 21,484
88,113 21,515
Special Revenue
Adult
Education
974,124
411
974,535
1,037,502
1,037,502
(62,967)
(62,967)
119,243
56,276
Small
Cities
Grant
82
82
82
82
31,202
31,284
-63-
SCHEDULE4
Page 2 of 6
Trails
Committee
8
8
8
8
5,279
5,287
(Continued)
CHANGES IN FUND BALANCES (DEFICITS)- NON-MAJOR GOVERNMENTAL FUNDS, Continued
Special Revenue
One
Sewer Time Use
Assessment Grant
Revenues
Intergovernmental $
Other 1,100
Total revenues $ 1,546 2
Expenditures
Public safety $
Public works 32,406
Education
Other
Revenue Over (Under) Expenditures $ (30,860} 2
Transfers in $
Transfers (out)
Changes in Fund Balances (Deficits) $ (30,860) 2
Fund Balances (Deficits) - beginning 257,225 1,466
Fund Balances (Deficits)- ending $ 226,365 1,468
-64-
CRRA
Consent
Order
11,958
11,958
{11,958}
(11,958)
22,690
10,732
DWI
Grant
20
20
20
20
14,174
14,194
Radio
Grant
95,183
95,183
(95, 183)
(95, 183)
95,183
Special Revenue
Senior
Center
48,155
48,155
(48, 155)
(48, 155)
57,530
9,375
Homeland
Security
Grant
(26,236)
(26,236)
-65-
SCHEDULE4
Page 3 of 6
Recreation
Path
Grants
3
3
1,365
1,365
(1 ,362)
(1 ,362)
2,314
952
(Continued)
Special Revenue
COPS Housatonic
TECH River
Earmark Estua!1
Revenues
Other 2,000
Total revenues $ 30,068 2,006
Expenditures
Public safety $ 98,723
Public works
Culture and recreation 883
Education
Other
Total expenditures $ 98,723 883
Revenue Over (Under) Expenditures $ (68,655) 1,123
Transfers in $ 147,767
Transfers (out)
Total other financing sources $ 147,767
Changes in Fund Balances (Deficits) $ 79,112 1,123
Fund Balances (Deficits) - beginning . 3,513
Fund Balances (Deficits} -ending $ 79,112 4,636
-66-
Dog
Fund
7
7
7
7
5,333
5,340
Special Revenue
School Educational Athletic
Lunch Grants Association
442,989 2,640,188
1,463,630 108,761
1,906,619 2,640,188 108,761
1,725,533 2,576,113 117,950
1,725,533 2,576,113 117,950
181,086 64,075 (9,189)
181,086 64,075 (9,189)
(9,899) (164,520) 166,742
171,187 (100,445) 157,553
Summer
School
43,813
86
43,899
33,293
33,293
10,606
10,606
73,473
84,079
-67-
SCHEDULE 4
Page 4 of6
Pay to
Play
309,998
309,998
22,519
22,519
287,479
(285,000}
(285,000)
2,479
2,479
(Continued)
Special Revenue
CompVoice Saturday
Stress Exploration
Analyzer & Enrichment
Revenues
Investment income 2
Other
Total revenues $ 2 11,965
Expenditures
Public safety $
Public works
Education 8,786
Other
Revenue Over (Under) Expenditures $ 2 3,179
Transfers in $
Transfers (out)
Changes in Fund Balances (Deficits) $ 2 3,179
Fund Balances (Deficits)- beginning $ 1,049 147,043
Fund Balances (Deficits)- ending $ 1,051 150,222
-68-
Shelton
Housing
Authority
37,009
19
37,028
37,028
37,028
(37,028)
Special Revenue
Smoke
Town Conservation Detector
Clerk Commission Grant
108
261,637
261,745
23
206,988
206,988 23
54,757 (23)
54,757 (23)
38,646 116 23
93,403 116
Total
Special
Revenues
4,437,756
1,926,202
3,366
341,613
6,708,937
208,204
281,887
50,403
5,521,696
575,087
6,637,277
71,660
460,267
{285,000}
175,267
246,927
2,004,769
2,251,696
-69-
SCHEDULE4
Page 5 of6
Debt
Service
266,962
266,962
(Continued)
Permanent Funds
Edward C. David
Finn Clark
Scholarship Scholarship
Revenues
Intergovernmental $
Other 75 50
Total revenues $ 78 51
Expenditures
Public safety $
Public works
Education 75 50
Other
Total expenditures $ 75 50
Revenue Over (Under) Expenditures $ 3 1
Transfers in $
Transfers (out)
Changes in Fund Balances (Deficits) $ 3 1
Fund Balances (Deficits)- beginning 2,222 994
Fund Balances (Deficits)- ending $ 2,225 995
-70-
Paul
Gerst
Memorial .
1
50
51
50
50
1
887
888
Permanent Funds
Permanent
Hanson War
Lucy Edwards Memorial
Beard Legacy Scholarship
2 2 867
50
52 2 867
812
50
50 812
2 2 55
2 2 55
1,444 1,000 40,385
1,446 1,002 40,440
Mary & Charles Total
Lavietes Permanent
Memorial Funds
2 878
50 275
52 1,153
50 862
225
50 1,087
2 66
2 66
819 47,751
47,817
-71-
Totals
SCHEDULE4
Page 6 of 6
4,437,756
1,926,202
4,244
341,888
6,710,090
208,204
281,887
51,265
5,521,921
575,087
6,638,364
71,726
460,267
(285,000}
175,267
246,993
2,319,482
2,566,475
W.P.C.A EXPENDITURES AND OTHER FINANCING USES
BUDGETARY BASIS BUDGET AND ACTUAL
Budgeted Amounts Budgetary Positive/
Regular Payroll $ 528,112 528,112 505,161 22,951
Part Time Payroll 22,906 (22,906)
Personnel Training 5,300 5,300 394 4,906
Overtime Pay 80,900 80,900 68,485 12,415
Mileage 300 300 68 232
Professional Services 50,000 50,000 11,285 38,715
lnnoculations 200 200 200
Printing & Advertising 3,000 3,000 1,242 1,758
Uniform Services 5,200 5,200 5,130 70
Diesel Generator Maintenance 3,000 3,000 1,880 1,120
Gasoline 8,400 8,400 8,112 288
Cleaning Supplies 500 500 443 57
Bottled Gas 150 150 117 33
Heating Fuel 16,560 16,560 11,827 4,733
Minor Tools 1,000 1,000 760 240
Protective Clothing 850 850 486 364
Chemicals 132,500 132,500 89,201 43,299
Fire Extinguishers 5,000 5,000 612 4,388
Motor Vehicle Maintenance 3,500 3,500 2,226 1,274
Legal Stenographer's Fee 3,760 3,760 3,850 (90)
Stratford Sewage Fees 165,100 165,100 171,944 (6,844)
Dep Permit Fees 2,243 2,243 999 1,244
City Hall Vehicles 300 300 90 210
Sewer Maintenance 49,000 49,000 16,418 32,582
Building Maintenance 1,500 1,500 1,195 305
Equipment Maintenance 221,420 221,420 178,954 42,466
Physicals 800 800 800
Sludge Dumping 243,056 243,056 202,020 41,036
Dep Nutrient Testing 19,000 19,000 18,821 179
Septic Haul
WPCA Sewer Usage Refund 2,000 2,000 2,000
WPCA Capital Sink Fund 75,000 75,000 75,000
Digester Funding
ST of CT Nutrient Reduct 105,474 105,474 105,474
Grit Removal 9,908 9,908 1,716 8,192
Municipal Electric 420,000 420,000 388,867 31,133
Municipal Water 27,925 27,925 20,239 7,686
Telephone Service 8,000 8,000 4,868 3,132
WPCA Reserve
Social Security 47,000 47,000 45,527 1,473
WPCP Employee Insurance 136,000 136,000 129,689 6,311
Dental Plan 4,775 4,775 1,443 3,332
Union Pension WPCP 41,000 41,000 42,282 (1,282}
Total Expenditures $ 2,427,733 2,427,733 2,034,257 393,476
Depreciation expense 2,215,412
Reserved for Capital Expenditures (75,000}
Total Operating Expenses $ 4,174,669
-72-
FIDUCIARY FUNDS
Fiduciary Funds are used to account for assets held in a trustee capacity for others, and
include Pension Trusts and Agency Funds.
Private Purpose Trust Funds - utilize the accrual basis of accounting and are used for
various purposes. The principal must be maintained intact and invested. The City's Private
Purpose Funds are listed below:
Servicemen's Christmas Fund
DWI Fund
Dog Pound Trust Fund
Police Department Pistol Range
Municipal Parking Lot Improvements
Shelton Park Commission
Gazebo Fund
Project D.A.R.E
Youth Service Bureau
Constitution Park Donations
Local Schools
Plumb Memorial Library
Student Activity
Special Response Team
Animal Shelter Donations
Civil War Monument
PRIVATE PURPOSE TRUST FUNDS
COMBINING STATEMENT OF NET ASSETS
June 30, 2011
Police
Servicemen's Dog Department
Christmas DWI Pound Trust Pistol
Fund Fund Fund Range
ASSETS
Cash and cash equivalents $ 7,924 424 1,018
Investments
Total Assets $ 7,924 424 1,018
LIABILITIES
Accounts payable 421
Other liabilities $
Total Liabilities $ 421
NET ASSETS
Held in trust for specific purposes $ 7,924 424 (421) 1,018
-73-
Municipal
Parking
Lot
Improvements
1,366
1,366
1,366
Shelton
Park
Commission
2,949
2,949
2,949
Gazebo
Fund
45,359
45,359
45,359
Project
D.A.R.E
2,546
2,546
2,546
-74-
Youth
Service
Bureau
385
385
385
SCHEDULE 6
Page 1 of 2
Constitution
Park
Donations
.5,684
5,684
5,684
(Continued}
COMBINING STATEMENT OF NET ASSETS
June 30, 2011
ASSETS
Cash and cash equivalents $
Investments
Due to other funds
Total Assets $
LIABILITIES
Accounts payable
Other liabilities $
Total Liabilities $
NET ASSETS
Held in trust for specific purposes $
Local
Schools
2,084
2,084
2,084
Plumb Special
Memorial Student Response
Library Activtity Team
401,242 831,666 2,674
1,806,951
2,208,193 831,666 2,674
2,208,193 831,666 2,674
-75-
Animal
Shelter
Donations
1,742
1,742
1,742
Civil War
Monument Total
1,307,063
1,806,951
3,114,014
421
421
3,113,593
-76-
SCHEDULE 6
Page 2 of 2
COMBINING STATEMENT OF CHANGES IN NET ASSETS
Servicemen's
Christmas
Fund
ADDITIONS
Contributions $
Other 820
Total contributions $ 820
Investment earnings
Net increase in fair value $
Interest and dividends 11
Less: Investment expense
Total investment earnings $ 11
DEDUCTIONS
Benefits $
Other 350
Total deductions $ 350
Change in net assets $ 481
Net Assets - beginning 7,443
Net Assets - ending $ 7,924
-77-
Police
Dog Department
DWI Pound Trust Pistol
Fund Fund Range
1
1
1
423 (421) 1,017
424 (421) 1,018
Municipal
Parking
Lot
Improvements
1
1
1,365
1,366
Shelton
Park
Commission
4
4
4
2,945
2,949
Gazebo
Fund
3,875
3,875
58
58
3,933
41,426
45,359
Project
D.A.R.E
4
4
4
2,542
2,546
-78-
Youth
Services
Bureau
Donation
1
1
384
385
Constitution
Park
Donations
8
8
8
5,676
5,684
SCHEDULE 7
Page 1 of2
Local
Schools
3
3
3
2,081
2,084
(Continued)
COMBINING STATEMENT OF CHANGES IN NET ASSETS
Plumb
Memorial Student
Library Activity
ADDITIONS
Contributions $ 6,044
Other 36,463
Total contributions $ 42,507
Investment earnings
Net increase in fair value $ 227,496
Interest and dividends 41,422
Less: Investment expense {12,987}
Total investment earning:$ 255,931
DEDUCTIONS
Benefits $
Other 66,382 104,400
Total deductions $ 66,382 104,400
Change in net assets $ 232,056 (104,400}
'Net Assets - beginning 1,976,137 936,066
Net Assets - ending $ 2,208,193 . 831,666
-79-
Special Animal
Response Shelter
Team Donations
135
135
3 3
3 3
907
907
3 (769)
2,671 2,511
2,674 1,742
SCHEDULE 7
Page 2 of 2
Total
10,054
371283
47,337
227,496
41,520
{12,987}
256,029
172,039
172,039
131,327
2,982,266
3,113,593
AGENCY FUNDS
COMBINING STATEMENT OF FIDUCIARY NET ASSETS
June 30, 2011
Argraves Refuse
AHO Disposal Sec.
Easement Deposit
ASSETS
Cash and cash equivalents $ 6,288 7,034
Accounts receivable
Total Assets $ 6,288 7,034
LIABILITIES
Due to General Fund $ 4,200 300
Other liabilities
Held for deposits for others 2,088 6,734
Total Liabilities $ 6,288 7,034
NET ASSETS $
-80-
Lane
Street Sewer
Improvements SWEROC Escrows
22,502 2,022 1,542
22,502 2,022 1,542
22,502 2,022 1,542
22,502 2,022 1,542
SCHEDULES
Union Perry Hill
Highway Security Turro PandZ Road
Reservoir Pension Deposit Sewer Developer Security
Associates Escrow BHC Assessment Bonds Deposit Total
80,876 9,176 2,114 7,003 448,339 1,027 587,923
80,876 9,176 2,114 7,003 448,339 1,027 587,923
4,500
80,876 9,176 2,114 7,003 448,339 1,027 583,423
80,876 9,176 2,114 7,003 448,339 1,027 587,923
-81-
Page 1 of 2
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balance Balance
July 1, June 30,
2010 Additions Deductions 2011
Argraves AHO Easement
Assets
Liabilities
Accounts payable $ 4,200 4,200
Deposits held for others 2,080 8 2,088
$ 6,280 8 6,288
Refuse Disposal Sec Dep
Assets
Liabilities
Due to City of Shelton $ 300 300
Deposits held for others 6,724 10 6,734
$ 7,024 10 7,034
Lane Street Improvements
Assets
Liabilities
Deposits held for others $ 22,471 31 22,502
SWEROC
Assets
Liabilities
Sewer Escrows
Assets
Liabilities
Reservoir Associates
Assets
Liabilities
(Continued)
-82-
Page 2 of2
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
For the Year Ended June 30,2011
Balance Balance
July 1, June 30,
2010 Additions Deductions 2011
Union Highway Pension Escrow
Assets
Liabilities
Security Deposit - BHC
Assets
Liabilities
Deposits held for others $ 2,111 2,114
Turro Sewer Assessment Escrow
Assets
Liabilities
P and Z Developer Bonds
Assets
Cash and cash equivalents $ 386,723 111,396 49,780 448,339
Other Assets
386,723 111,396 49,780 448,339
Liabilities
Deposits held for others $ 386,723 111,396 49,780 448,339
Perry Hill Road Security Deposit
Assets
Liabilities
Deposits held for others $ 1,025 1,027
Total Agency Funds
Assets
Cash and cash equivalents $ 526,114 111,589 49,780 587,923
Other Assets
526,114 111,589 49,780 587,923
Liabilities
Accounts payable $ 4,500 4,500
Deposits held for others 521,614 111,589 49,780 583,423
$ 526,114 111,589 49,780 587,923
-83-
SCHEDULE10
Collections
Uncollected
Lien Balance
Taxes Interest Fees Total June 30, 2011
285 419 24 728
283 2,418 2,701 2,699
535 1,299 1,834 4,195
853 1,648 2,501 5,493
506 993 1,499 6,737
2,648 4,041 6,689 6,901
5,110 2,462 7,572 8,097
1,696 1,629 3,325 9,986
3,012 5,056 24 8,092 17,871
3,890 3,840 24 7,754 36,267
9,345 7,817 96 17,258 49,394
10,039 8,118 168 18,325 80,242
36,474 25,009 384 61,867 127,515
137,125 50,670 1,184 188,979 238,770
723,814 147,086 3,072 873,972 473,494
935,615 262,505 4,976 1,203,096 1,067,661
95,698,353 277,332 2,592 95,978,277 1,077,683
96,633,968 539,837 7,568 97,181,373 2,145,344
-85-
SCHEDULE OF DEBT LIMITATION
Debt Limitation:
2 1/4 Times Base
4 1/2 Times Base
3 3/4 Times Base
3 1/4 Times Base
3 Times Base
?Times Base
Total Debt Limitation
Indebtedness:
Bonds payable
Bonds authorized and unissued
Total Indebtedness
Less: School Construction Grants Receivable
Total Indebtedness of the City
Debt Limitation In Excess of Outstanding and
Authorized Debt
-86-
General
Purpose
$ 218,658,089
$ 218,658,089
$ 20,961,800
1,000,701
$ 21,962,501
$ 21,962,501
$ 196,695,588
Total Tax Collections (Including Interest and Lien Fees)
For The Year Ended June 30, 2011
Reimbursement For Revenue Loss On:
Elderly Tax Relief- Freeze
Base
Schools Sewers
437,316,179
364,4301 149
437,316,179 364,430,149
46,817,700 50,500
305,531 4,259,771
47,123,231 4,310,271
47,123,231 4,310,271
390,192,948 360,119,878
Urban
Renewal
315,839,462
315,839,462
315,839,462
Pension
Bonding
291,544,119
291,544,119
291,544,119
-87-
$
$
97,181,373
97,181,373
Total
Debt
680,269,611
680,269,611
67,830,000
5,566,003
73,396,003
73,396,003
606,873,608
SCHEDULE11
NET ASSETS BY COMPONENT, Last Ten Years (In Thousands)
Basis of Accounting)
Fiscal Year
2003* 2004 2005 2006 2007**
Government activities:
Invested in capital assets
net of related debt
$ 59,347 56,334 47,583 66,140 143,940
Restricted 48 48 48 49 50
Debt Service
Unrestricted 5,560 6,106 11,889 6,473 6,941
Total Government Activities $ 64,955 62,488 59,520 72,662 150,931
Business Type Activities
Invested in capital assets
net of related debt
$
Restricted
Unrestricted
Total Business-Type Activities
Total net assets
$ 64,955 62,488 59,520 72,662 150,931
"'
$200
Net Assets
'"0
c
ill $180
"
0
.c
$160 1-
$140
$120
$100
$80
$60
$40
$20
$-
2003* 2004 2005 2006
The information was not maintained prior to fiscal year ended June 30, 2003.
**First year the audited financial statements included infrastructure.
2007** 2008 2009
-88-
TABLE A-1
2008 2009 2010 2011
107,363 113,827 140,429 141,956
49 49 48 48
1,075 1,935 267 267
7,000 (18,524) (15,442) (1 ,449)
115,487 97,287 125,302 140,822
35,096 34,247 36,313 35,583
(1 ,584) (245) 43 448
33,512 34,002 36,356 36,031
148,999 131,289 161,658 176,853
2010 2011
CITY OF SHELTON, CONNECTICUT TABLEA-2
CHANGES IN NET ASSETS, Last Ten Fiscal Years (In Thousands)
(Accrual Basis of Accounting)
Fiscal Year
2003* 2004 2005 2006 2007 2008* 2009 2010 2011
Expenses
Governmental activities:
General government $ 7,907 8,643 8,980 10,611 10,657 6,120 14,361 13,038 11,507
Public safety 5,239 5,172 5,814 6,918 7,771 7,126 12,545 7,555 6,675
Community service 1,737 1,879 1,905 2,138 2,351
Public works 8,150 9,053 8,929 9,394 12,586 8,553 11,201 8,246 7,911
Health and welfare 368 225 221 223
Culture and recreation 3,580 3,429 4,769 3,243
Education 58,380 59,666 64,005 64,849 67,296 98,567 84,669 72,103 73,518
Public library 823 862 868 1,016 977
Municipal facilities 2,738 2,953 3,099 3,030 3,174
Miscellaneous 410 405 440 247 227 11,841 9,200
Interest on debt 1 586 1 521 1 522 1 879 1 514 2136 2 610 2 254 1,483
Total governmental activities $ 86,970 90,154 95,562 100,082 106,553 138,291 138,240 108,186 104,560
l3usiness-type activities
Water Pollution Control Authority 3 213 3143 3 901 4 516
Total primary government expenses $ 86,970 90,154 95,562 100,082 106,553 141,504 141,383 112,087 109,076
Governmental activities $ 8,690 7,233 8,107 10,115 8,691 8,061 5,774 4,704 5,299
Business-type activities 2 700 2 317 2470 2 532
Total primary government revenues $ 8,690 7,233 8,107 10,115 8,691 10,761 8,091 7,174 7,831
Operating Grants
Governmental activities $ 8 957 10 049 9 044 11 431 11 902 28 481 13 424 15 448 14 697
Capital Contributions
Governmental activities $ 576 145 1,448 8,666 4,404 7,322 3,139 8,397 1,671
Business-type activities 1 060 1 628 507
$ 576 145 1 448 8 666 4404 7 322 4199 10 025 2,178
Net (Expenses)Revenue and
Changes in Net Assets
Governmental activities $ (68,747) (72,727) $ (76,963) $ (69,870) (81,556} $ (94,427} $ (115,903} $ (79,637) (82,893)
Business-type activities (513) 234 197 1,984
Total Net (Expenses) Revenue and
Changes in Net Assets $ (68,747) (72,727) (76,963) (69,870) (81,556) (94,940) (115,669) (79,440) (80,909)
Unrestricted Revenues
Governmental activities $ 70,634 70,261 76,806 83,011 88,068 100,967 97,703 95,047 98,413
Business-Type activities (5,246) 256 2,157 1,659
Total primary government $ 70,634 70,261 76,806 83,011 88,068 95,721 97,959 97,204 100,072
Changes in Net Assets
Governmental activities $ 1,887 (2,466) (157) 13,141 6,512 6,540 (18,200) 15,410 15,520
Business-Type activities (5,759) 490 2,354 (325)
Total primary government $ 1,887 (2,466) (157) 13,141 6,512 781 (17,710) 17,764 15,195
The information was not maintained prior to fiscal year ended June 30, 2003
W.P.C.A was first reported as a business type aclivty during the fiscal year ended June 30, 2008
-89-
FUND BALANCES, Last Ten Fiscal Years
(Modified Accrual Basis of Accounting)
General Fund
Not
Fiscal Year unassigned unassigned
2002 1,113,732 8,125,395
2003 1,125,868 5,560,343
2004 916,984 4,098,277
2005 1,100,959 3,836,028
2006 1,231,158 7,094,022
2007 1,335,389 9,116,937
2008 4,190,903 6,758,145
2009 3,579,976 4,658,287
2010 4,861,594 4,394,228
2011 6,338,321 6,010,150
14,000,000
All Other Government Funds
Special Total all other
Reserved and Revenue Capital projects Government
Total Committeed Funds funds Funds
9,239,127 648,463 5,531,858 (8,966,721) (2,786,400)
6,686,211 113,816 7,134,136 (5,851,375) 1,396,577
5,015,261 156,984 5,972,839 (9,81 0,848) (3,681,025)
4,936,987 1,256,763 5,033,611 3,923,201 10,213,575
8,325,180 1,535,836 5,959,403 (201,563) 7,293,676
10,452,326 . 2,230,216 5,288,345 (4,948,661) 2,569,900
10,949,048 3,926,508 3,863,455 (4,177,436) 3,612,527
8,238,263 5,764,239 1,560,828 (19,045,772) (11,720,705)
9,255,822 4,290,731 1,790,384 (22,367,566) (16,286,451)
12,348,471 922,528 2,566,425 (9,964,1 01) (6,475,098)
General Fund Balance
12,000,000 +-------------------------------------------------------
10,000,000 -1-------------------
8,000,000
6,000,000
4,000,000
2,000,000
2002 2003 2004 2005 2006 2007 2008 2009 2010
o unassigned 1!1 Not unassigned
-90-
TableA-3
Total
6,452,727
8,082,788
1,334,236
15,150,562
15,618,856
13,022,226
14,561,575
(3,482,442)
(7,030,629)
5,873,373
2011
CHANGES IN FUND BALANCES, Last Ten Fiscal Years (In Thousands)
(Modified Accrual Basis of Accounting)
2002
Revenues:
Property taxes $ 65,769
Intergovernmental 13,675
Licenses and permits 1,248
Charges for services 3,851
Fines and forfeitures 30
Revenues from the use of money 879
Miscellaneous 3,784
Total revenues $ 89,236
Expenditures:
Current:
General government $ 7,133
Public safety 5,135
Public works 6,513
Culture and recreation 2,939
Public health
Municipal facilities 2,644
Education 53,066
Other 337
Capital outlay 8,673
Debt service 5,817
Excess (deficiency) of revenues
over (under) expenditures $ (3,021)
Other financing sources (uses)
Transfers (to) from other funds
Proceeds from sale of bonds and notes $ 8,500
Total other financing sources (uses) $ 8,500
Net changes in fund balances $ 5,479
2003
68,104
12,385
1,757
4,369
19
877
2,101
89,612
7,584
4,991
7,032
1,660
56,190
3,978
8,278
4,524
94,237
(4,625)
4,400
4,400
(225)
Changes in Primary Government Fund Balance
$20,000
. .';
2006 2007
$(20,000)
-91-
2004 2005
68,845 74,947
11,742 12,612
1,985 2,168
3,738 4,695
17 24
397 643
1,521 1,707
88,245 96,796
8,420 8,283
5,220 5,448
8,449 1,826
1,791 10,945
2,951 914
57,759 60,308
1,198 392
4,792 10,070
4,415 6,057
94,995 104,243
(6,750) (7,447)
22,335
22,335
(6,750) 14,888
TABLE A-4
Fiscal Year
2006 2007 2008 2009 2010 2011
79,815 83,387 86,880 94,018 95,334 97,607
22,104 18,256 43,745 18,152 25,361 19,197
2,786 2,874
4,952 5,527 4,506 3,955 3,865 2,732
32 37
1,099 2,100
1 '119 459 260 338
2,370 1,029 4,019 2,739 1,954 1,703
113,158 113,210 140,269 119,323 126,774 121,577
8,968 8,954 11,466 10,847 11,449 11,509
6,395 7,041 6,090 6,936 6,202 6,383
2,060 9,198 6,400 7,296 5,802 6,285
10,733 6,433 3,374 3,147 3,052 3,174
218 225 221 223
1,009
63,549 67,678 90,752 75,737 74,743 72,902
247 227 3,965 5,998 4,532 3,154
13,749 30,363 21,608 17,890 33,242 6,055
7,198 7,568 8,926 11,100 12,038 12,072
113,908 137,462 152,799 139,176 151,281 121,757
(750) (24,252) (12,530) (19,853) (24,507) (180)
5,271 (246) (2,156) (1,151)
27,421 11,650 2 055 23,115 14,235
27,421 16,921 1,809 20,959 13,084
(750) 3,169 4,391 (18,044) (3,548) 12,904
Changes in General Fund Balance
( 4,000) .i ............ -------------------------------------------------
-92-
ASSESSED VALUE AND ACTUAL VALUE OF TAXABLE PROPERTY
Last Ten Years (In Thousands)
Commercial/
Residential Industrial Personal
Fiscal Year
-
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
"'
"0
c
"'
"' ::l
0
.c
1-
Property
65.0
64.8
65.2
65.3
64.8
72.0
71.8
70.0
70.5
71.6
$6,000,000.00
$5,500,000.00
$5,000,000.00
$4,500,000.00
$4,000,000.00
$3,500,000.00
$3,000,000.00
$2,500,000.00
$2,000,000.00
$1,500,000.00
2002
Property
18.3
18.1
18.4
18.3
18.4
16.8
17.4
17.9
18.1
16.8
2003 2004
All Land Property
6.0 8.4
6.0 8.6
6.0 8.2
5.0 7.9
6.0 8.1
5.0 5.0
3.0 4.8
3.0 6.5
3.0 5.7
3.0 5.8
Total Assessed Value
2005 2006 2007
Fiscal Year
Gross Grand
List
Motor Vehicle (Thousands)
7.7 3,211,716'
7.9 3,264,505
7.6 3,288,413
8.0 3,346,225
8.1 3,433,959
5.7 4,976,506
5.7 5,092,913
5.3 5,208,469
5.4 5,261,547
5.5 5,304,505
2008 2009 2010 2011
o Residential Property 0 Commercial/Industrial Property sa All Land 1!1 Personal Property m Motor Vehicle
SOURCE: City of Shelton, Assessor's Office
-93-
TABLE B-1
Net Taxable
Grand List
(Thousands)
3,174,463
3,219,614
3,246,596
3,305,554
3,389,503
4,927,750
5,037,321
5,145,498
5,198,457
5,242,912
DIRECT AND OVERLAPPING PROPERTY TAX RATES
Last Ten Years (Rates per $1,000 of Assessed Value)
Grand List
Year
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
City Direct
Rate
Basic Rate
24.10
24.60
25.59
20.89
20.89
22.73
23.59
24.31
17.47
18.61
City Direct Tax Rate
2000 2001 2002 2003 200
furand List yQQp
SOURCE: City of Shelton, Tax Collector's Office
-94- .
TABLE B-2
2006 2007 2008 2009
CITY OF SHELTON, CONNECTICUT TABLE B-3
PRINCIPAL PROPERTY TAXPAYERS
Current Year and Ten Years Ago
Fiscal Year Ended June 30, 2011
Percentage of Total
City Taxable
TAXPAYER ASSESSMENT
1
Rank Assessed Value
Scinto, Robert $ 249,478,600
Pitney Bowes, Inc.
Cre Ivy Brook LLC
United !Illuminating Co.
Aquarion Water Company
Blakeman Construction LLC
Health Net of California Real Estate Holding
Armstrong Park Associates
RA710 Bridgeport Avenue, LLC
Shelton Square Limited Partnership
55,996,020
55,802,260
52,080,840
36,873,840
31,388,630
29,130,730
26,033,260
20,503,210
17,256,750
574,544,140
$ = = = = = ~ ~ =
1 4.85%
2 1.09%
3 1.08%
4 1.01%
5 0.72%
6 0.61%
7 0.57%
8 0.51%
9 0.40%
10 0.34%
11%
Fiscal Year Ended June 30, 2011
Percentage of Total
City Taxable
TAXPAYER ASSESSMENT
1
Rank Assessed Value
Scinto Robert $ 69,929,650 1 2.81%
Pitney Bowes, Inc. 56,858,760 2 2.28%
Bridgeport Hydraulic Co 36,967,230 3 1.16%
PHS Real Estate II, Inc 22,103,030 4 0.69%
Armstrong Park Associates 19,045,600 5 0.59%
Reckson Operating Partnership LP 13,655,460 6 0.41%
America Skandia Information 21,627,700 7 0.64%
Shelton Square Limited Partnership 10,936,450 8 0.22%
United Illuminating Co 10,186,580 9 0.20%
Div Research LLC 10,051,860 10 0.20%
$ 271,362,320 9%
1. Information from the City of Shelton, Assesor's Office
-95-
%
%
PROPERTY TAX LEVIES AND COLLECTIONS
Last Ten Years (In thousands)
Collected Within the Fiscal Year of
Fiscal
Year
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Ill
'C
c
Taxes Levied
for the Fiscal
Year
64,237
66,734
67,606
74,194
78,912
82,901
82,516
94,022
95,890
96,776
m 120
:::s
0
.c
1-
60
40
20
Levy
Percentage of
Amount Original Levy
63,476 98.8
66,018 98.9
66,921 99.0
73,599 99.2
78,343 99.3
82,174 99.1
81,707 99.0
92,978 98.9
94,691 98.7
95,633 98.8
total Tax Collections
TABLE B-4
Total Collections to Date
Collections In
Subsequent Percentage of
Years Amount Levy
752 64,228 100.0%
706 66,724 100.0%
667 67,588 100.0%
559 74,158 100.0%
520 78,863 99.9%
647 82,174 99.1%
681 81,707 99.0%
805 92,978 98.9%
726 95,417 99.5%
936 96,569 99.8%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
CCollected Within the Fiscal Year of Levy cCollectlons In Subsequent Years
-96-
RATIOS OF OUTSTANDING DEBT BY TYPE
Last Ten Years, (In Thousands)
Fiscal Year
Ended June
30,
2002 $
2003
2004
2005
2006
2007
2008
2009
2010
2011
General
Obligation
Bonds
28,745
30,820
27,780
45,165
39,670
51,790
56,655
50,250
63,420
67,830
Capital
Leases
Resources
Restricted
For Debt
Payments
1
(1,175)
(1,175)
(1,935)
(267)
(267)
Outstanding Debt by Type
Business-type
Activities
Water
Pollution
Control Notes
8,962
19,139
18,947
17,439
16,629
80,000 1---------------------------
70,000 1--------------------
60,000 1-----------------
50,000 -1-----------------
40,000 1-----------1
30,000 ~ - = = - - - ~ m - - - - - - 1
20,000 1-H:!''?!I---1!':\ir;;:'J---I:':'i':H---
10,000 -1-L:'!:'\d--
0 - 1 - = " - ~ - - . . . -
2002 2003 2004 2005
CSeries1
2006
Fiscal Year
2007 2008
SSeries2
2009 2010
Total Primary
Governmenf
2011
28,745
30,820
27,780
45,165
39,670
59,577
74,619
67,262
80,592
84,192
1
Includes Intergovernmental Grants Receivable from the State Department of Education and restrictions from enabling legislation
2
All of the City of Shelton's debt is considered general obligation with no other revenues specifically pledged
-97-
TABLE C-1
Aggregate
Percentage of Personal
Personal Income Income Population
3
Per Capita
3
2.51% $ 1,145,840 38,451 0.75
2.67% 1,153,171 38,697 0.80
2.39% 1,161,515 38,977 0.71
3.88% 1,164,226 39,068 1.16
3.41% 1,163,630 39,048 1.02
5.02% 1,187,172 39,838 1.50
6.26% 1,192,328 40,011 1.86
5.64% 1,192,328 40,011 1.68
6.84% 1,178,858 39,559 2.04
7.14% 1,178,858 39,559 2.13
% Debt Per Capita
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Fiscal Year
The source of this information is U.S. Bureau of Economic Analysis
-98-
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
Last Ten Fiscal Years
Net
Fiscal Bonded Assessed
Year Ended Debt Value
June 30, (Thousands) (Thousands)
2002 28,745 3,211,716
2003 34,685 3,264,505
2004 45,204 3,288,413
2005 45,780 3,346,225
2006 39,670 3,433,959
2007 60,779 4,976,506
2008 56,655 5,092,913
2009 50,250 5,145,497
2010 63,420 5,198,457
2011 67,830 5,873,373
Ratio of Net
Bonded
Debt to Net
Assessed
Value
0.90
1.06
1.37
1.37
1.16
1.22
1.11
0.98
1.22
1.15
Bonds Debt to Net Assessed Value
$1.60
$1.40
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$-
2002 2003 2004 2005 2006 2007
-99-
TABLE C-2
Debt Per
Population Capita
39,000 737
39,000 889
39,121 1,155
39,254 1,166
39,477 1,005
39,838 1,526
40,011 1,416
40,011 1,256
40,011 1,585
39,559 1,715
2008 2009 2010 2011
LEGAL DEBT MARGIN INFORMATION
Last Ten Years, (In Thousands)
Legal Debt Margin Calculation for Fiscal Year 2011:
Fiscal Year
Ended June
30,
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Property Taxes Collected
Less: Elderly Tax
Total Base
Debt limitation Multiple
Legal Debt Limitation
Total Net
Debt
Debt Applicable to
Limitation Limit
452,969 64,710
469,364 67,052
475,870 67,981
521,954 74,565
554,827 79,261
579,849 82,836
578,341 109,372
657,451 105,924
671,143 88,565
676,445 73,396
97,181,373
$ 97,181,373
X 7
$ 680,269,611
Legal Debt
Margin
388,259
402,312
407,889
447,389
475,566
497,013
468,969
551,527
582,578
603,049
-100-
TABLE C-3
Total Net
Debt
Applicable to
the limit as a
percentage
of Debt Limit
14.3
14.3
14.3
14.3
14.3
14.3
18.9
16.1
13.2
10.9
DEMOGRAPHIC AND ECONOMIC STATISTICS
Last Ten Calendar Years
Year Population
2002 38,451
2003 38,697
2004 38,977
2005 39,068
2006 39,048
2007 39,838
2008 40,011
2009 40,011
2010 40,011
2011 39,559
TABLE D-1
Per Capita
Personal Unemployment
Income Rate
29,893 2.9
29,893 3.8
29,893 5.2
29,893 6.8
29,893 5.9
29,893 5.9
29,893 5.4
29,893 * 5.1
29,893 7.0
29,893 8.1
Sources: Department of Labor, State of Connecticut, U.S. Census Bureau and the State Department of Economic and Community Development
* Information from the State Department of Economic and Community Development.
-101-
PRINCIPAL EMPLOYERS
Current Year and Ten Years Ago
Employer
Prudential Annuities
City of Shelton
Pitney Bowes
HealthNet/Call Center
United Illuminating Company
Perkin-Elmer Instruments
Cablevision
United Methodist/Bishop Wicke
Hubbell, Inc.
Dianon Systems
Employer
Pintey Bowes
America Skandia
City of Shelton
Health Net
Perkin-Elmer
First Union National Bank
Sikorsky Aircraft
Ascom Hasler/Better Packages
Wai-Mart
lnline Plastics
Current Year
Employees
957
850
762
650
540
520
500
325
295
250
Ten Years Ago
Employees
1,570
1,389
904
700
600
400
392
314
310
300
Source of information: Connecticut Department of Labor
-102-
TABLE D-2
Percentage
ofTotal City
Rank Employment
1 4.7%
2 4.i%
3 2.7%
4 2.3%
5 1.9%
6 1.9%
7 1.8%
8 1.2%
9 1.0%
10 0.9%
Percentage
Rank ofTotal City
1 7 ~ 7 %
2 6.8%
3 4.4%
4 3.4%
5 2.9%
6 2.0%
7 1.9%
8 1.5%
9 1.5%
10 1.5%
Full-Time Equivalent' City Government Employees By Function/Program
Last Ten Fiscal Years*
Fiscal General
Year Government Education
2002 302 602
2003 296 611
2004 301 617
2005 301 623
2006 315 615
2007 315 624
2008 313 634
2009 319 625
2010 311 549
2011 301 549
2011 Bargaining Organizations
3%
source: City of Shelton, Personnel Department and Superintendent's Office
-103-
Total
904
907
918
924
930
939
947
944
860
850
Administrative
Sewage Treatment
1%
Highway and Bridges
5%
TABLE E-1
Capital Asset Statistics By Function/Program
Last Ten Fiscal Years*
Function I Operating Indicator
General
Public Safety
Public Works
Health and Human Services
Education
Library
- Park and Recreation
Golf Course
2011
31,247,756
3,205,732
58,683,509
2,190,649
93,577,618
1,223,919
20,143,012
25,737
210,297,932
2010
30,681,559
3,659,459
59,574,924
2,102,474
87,434,930
539,759
19,830,512
25,737
203,849,354
Capital Assets by function, Current Year- 2011
Health and Human
Services
* City began to collect information in fiscal year ended 2008
Public Safety
-104-
TABLE E-2
2009 2008*
15,083,429 15,193,896
7,573,438 7,456,735
42,938,174 44,314,779
2,132,417 2,102,474
98,953,623 97,767,155
618,868 697,977
21,961,680 19,830,512
25,737 42,896
189,287,366 187,406,424
CITY OF SHE.L TON
FEDERAL AND STATE
SINGLE AUDIT REPORTS
JUNE 30, 2011
Financial Statements
CITY OF SHELTON
FEDERAL AND STATE
SINGLE AUDIT REPORTS
TABLE OF CONTENTS
Report 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
Federal Single Audit
Report on Compliance With Requirements That
Could Have a Direct and Material Effect on Each
Major Program and on Internal Control Over
Compliance In Accordance With OMB Circular A-
133
Schedule of Expenditures of Federal Awards
Notes To Schedule of Expenditures of Federal
Awards
Schedule of Findings and Questioned Costs
Summary Schedule of Prior Years Audit Findings
State of Connecticut Single Audit
Report on Compliance With Requirements That
Could Have a Direct and Material Effect on
Each Major Program, and on Internal Control
Over Compliance In Accordance With The
State Single Audit Act
Schedule of Expenditures of State Financial
Assistance
Notes To Schedule of Expenditures of State
Financial Assistance Programs
Schedule of Findings and Questioned Costs
Page
Number
1-2
3-4
5-6
7
8-10
11
12-14
15-16
17-18
19-20
LEVITSKY & BERNEY
LB
100 BRADLEY ROAD WOODBRIDGE, CONNECTICUT 065252394
'------ 203 3895371 FAX 203 3894430
REPORT 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
To The Board of Aldermen
City of Shelton
Shelton, Connecticut, 06484
We have audited the financial statements of governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Shelton,
Connecticut as of and for the year ended June 30, 2011, which collectively comprise the City of
Shelton, Connecticut's basic financial statements and have issued our qualified opinion report
thereon dated December 20, 2011. 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.
Internal Control Over Financial Reporting
Management of the City of Shelton is responsible for establishing and maintaining effective
internal control over financial reporting. In planning and performing our audit, we considered the
City of Shelton's internal control over financial reporting as a basis for designing our auditing
procedures 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 City of Shelton's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness
of the City of Shelton's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose
described in the preceding paragraph and was not designed to identify all deficiencies in internal
control over financial reporting that might be significant deficiencies or material weaknesses and
therefore, there can be no assurance that all deficiencies, significant deficiencies, or material
weaknesses have been identified. However, we described in the accompanying schedule of
findings and questioned costs, we identified a certain deficiency in internal control over financial
reporting that we consider to be a material weakness.
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, detect and correct misstatements on a timely basis. A material weakness is a
deficiency, or combination of deficiencies, in internal control such that there is a reasonable
possibility that a material misstatement of the entity's financial statements will not be prevented,
or detected and corrected on a timely basis. We consider the deficiency described in the
accompanying schedule of findings and questioned costs to be a material weakness. See
finding 2011-1.
1
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Shelton's financial
statements are free of material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grants 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.
The City's response to the finding identified in our audit is described in the accompanying
schedule of findings and questioned costs. We did not audit the Center's response and,
accordingly, we express no opinion.
This report is intended solely for the information and use of management, the Board of
Aldermen, others within the City of Shelton, Federal Awarding agencies, the Office of Policy and
Management, State Awarding agencies, and pass-through entities and is not intended to be and
should not be used by anyone other than these specified parties.
December 20, 2011
2
LEVITSKY & BERNEY
100 BRADLEY ROAD WOODBRIDGE, CONNECTICUT 065252394
----- 2033895371 FAX203 3894430 .
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT AND
MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Board of Aldermen
City of Shelton
Shelton, Connecticut, 06484
Compliance
We have audited City of Shelton Connecticut's compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a
direct and material effect on each of City of Shelton's major federal programs for the year ended
June 30, 2011. The City of Shelton's major federal programs are identified in the summary of
auditor's results section of the accompanying schedule of findings and questioned costs.
Compliance with the requirements of laws, regulations, contracts, and grants applicable to each
of its major federal programs is the responsibility of the City of Shelton's management. Our
responsibility is to express an opinion on the City of Shelton's compliance based on our audit.
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
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations.
Those standards and OMB Circular A-133 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 City of Shelton'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. Our audit does not provide a legal determination of the City of Shelton's compliance
with those requirements.
In our opinion, the City of Shelton 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, 2011.
3
Internal Control Over Compliance
Management of the City of Shelton is responsible for establishing and maintaining
effective internal control over compliance with requirements of laws, regulations,
contracts, and grants applicable to federal programs. In planning and performing our
audit, we considered the City of Shelton's internal control over compliance with the
requirements that could have a direct and material effect on a major federal program to
determine the auditing procedures for the purpose of expressing our opinion on
compliance and to test and report on internal control over compliance in accordance with
OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of the internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City of Shelton'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.
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 deficiencies, significant
deficiencies, or material weaknesses. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of Federal Awards
We have audited the financial statements of the governmental activities, the business-
type activities, each major fund, and the aggregate remaining fund information of the
City of Shelton as of and for the year ended June 30, 2011 I and have issued our
qualified opinion report thereon dated December 20, 2011. Our audit was performed for
the purpose of forming our opinions on the financial statements that collectively
comprise the City of Shelton's basic financial statements. The accompanying schedule
of expenditures of federal awards is presented for purposes of additional analysis as
required by OMB Circular A-133 and is not a required part of the basic financial
statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly stated, in all
material respects, in relation to the basic financial statements taken as a whole.
This report is intended solely for the information and use of management, the members
of the Board of Aldermen, federal awarding agencies, and pas entities, and is
not intended to be and should not be used by anyone o er t n lhese
&
Certi ied Public Accountants
December 20, 2011
4
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2011
Federal Pass-Through
Federal Grantor/Pass-Through CFDA Grantor's Number/
Grantor/Program Title or Cluster Title Number Project Number
U.S. Department of Agriculture:
Passed Through the State Department of Education:
Child Nutrition Cluster:
School Breakfast Program 10.553 12060-SDE64370-20508 $
National School Lunch Program 10.555 12060-SDE64370-20560
Special Milk Program for Children 10.556 12060-SDE64370-20500
U.S.D.A. Commodities 10.550
Total U.S. Department of Agriculture $
U.S. Department of Education:
Adult Education 84.002 12060-SDE64370-20784 $
Adult Education 84.002 12060-SDE64370-20784
Title I Grants to Local Educational Agencies 84.010 12060-SDE64370-20679
Title I Grants to Local Educational Agencies 84.010 12060-SDE64370-20679
Special Education Cluster:
Special Education - Grant to States 84.027 12060-SDE64370-20977
Special Education - Grant to states 84.027 12060-SDE64370-20977
Special Education - Preschool Grants 84.173 12060-SDE64370-20983
Safe and Drug-Free Schools 84.184 12060-SDE64370-20873
Even Start - State Educational Agencies 84.213 12060-SDE64370-20682
Even Start - State Educational Agencies 84.318 12060-SDE64370-20682
English Language Acquisition Grants 84.365 12060-SDE64370-20868
English Language Acquisition Grants 84.365 12060-SDE64370-20868
Improving Teacher Quality State Grants 84.367 12060-SDE64370-20858
Improving Teacher Quality State Grants 84.367 12060-SDE64370-20858
Total U.S. Department of Education $
U.S. Department of Transportation:
. Passed Through the State Department of Transportation:
Highway Safety Cluster:
Highway Planning & Construction 20.205 12062-DOT57122-22108 $
Occupant Protection 20.602 12062-DOT57543-22086
Total U.S. Departmeryt of Transportation $
See Notes to Schedule of Expenditures of Federal Awards
5
Expenditures
49,293
391,387
29,800
. 132,460
602,940
29,400
100,800
6,439
357,402
19,276
245,773
41,753
483
1,678
111,057
5,350
7,938
9,071
130,003
1,066,423
118,991
6,609
125,600
(Continued)
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Federal Grantor/Pass-Through
Grantor/Program Title or Cluster Title
U.S. Federal Emergency Management Agency:
Passed Through the State Department of Emergency
and Homeland Security:
FEMA Public Assistance
Federal
CFDA
.Number
Emergency Management Performance Grant 83.552
Emergency Management Performance - Supplement
Total U.S. Federal Emergency Management Agency:
American Recovery & Reinvestment Act Programs
U.S. Department of Education:
IDEA, Part B State Grants
Special Education - Preschool Grants
Stabilization Grant - Education
Total ARRA Department of Education Grants
U.S. Department of Transportation
Urbanized Area Formula Grant
U.S. Department of Justice:
Passed Through the State Department of Public Safety:
Drug Task Force
Total Expenditures of Federal Awards
See Notes to Schedufeof Expenditures of Federal Awards
84.391
84.392
84.394
20.507
16.808
6
Pass-Through
Grantor's Number/
Project Number Expenditures
12060-EH99660-21881 $ 24,818
12060-EH99660-21891 5,962
12060-EH99660-22233 1,991
$ 32,771
------'---
12060-SDE64370-29011 $ 595,795
12060-SDE64370-29012 35,481
12060-SDE64370-29054 709,880
$ 1,341,156
12062-DOT57161-29015 $ 292,489
12060-DPS32523-29078 $ ___ _.:..18::.!'.::...00::..:0;...._
$ =====3,=4=79;:,;,,3=7=9=
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
Note 1 - Basis of Presentation
The accompanying Schedule of Expenditures of Federal Awards (the
"Schedule") includes the federal grant activity of the City of Shelton under
programs of the federal government for the year ended June 30, 2011. The
information in this schedule is presented in accordance with the requirements
of the Office of Management and Budget (OMB) Circular A-133, Audits of
States, Local Governments and Non-Profit Organizations. Because the
schedule presents only a selected portion of operations of the City of Shelton, it
is not intended to and does not present the financial position, changes in net
assets or cash flows of the City of Shelton.
Note 2 - Summary of Significant Accounting Policies
Expenditures reported on the Schedule are reported on the accrual basis of
accounting. Such expenditures are recognized following the cost principles
contained in OMB Circular A-87, Cost Principles for State, Local, and Indian
Tribal Governments wherein certain types of expenditures are not allowable or
are limited as to reimbursement. Negative amounts shown on the Schedule
represent adjustments or credits made in the normal course of business to
amounts reported as expenditures in prior years. Pass-through entity
identifying numbers are presented where available,
Note 3 - Non-monetary Assistance
The City's National School Lunch Program receives noncash federal awards in
the form of food commodities from the Department of Agriculture.
Non-monetary assistance is reported in the schedule at the fair market value of
the items received and disbursed. The market value of the items issued is
included in the Schedule of Expenditures of Federal Awards as follows:
Food Commodities $ 132.460
7
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
I SUMMARY OF AUDITORS RESULTS
Type of auditors report issued: Qualified
Internal Control over Financial Reporting:
Material weakness(es) identified?
Significant deficiency (ies) identified?
Noncompliance material to financial statements
noted?
Federal Awards
Internal control over major programs
Material weakness(es) identified?
--'x'"'--- yes __ no
___ yes x none reported
___ yes x no
___ yes x no
Type of auditors report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to
be reported in accordance with 51 O(a)
of OMS Circular A-133?
Identification of major programs:
___ yes
Name of Federal Program or Cluster
Special Education Cluster
ARRA- IDEA, Part B
ARRA - Preschool Grants
x no
CFDA Number(s)
84.027 & 84.173
84.391
84.392
84.394
84.397
10.550-10.556
ARRA - Stabilization - Education Grants
ARRA - Stabilization - Government Services
Child Nutrition Cluster
Dollar threshold used to distinguish
between type A and type B programs:
Auditee qualified as low-risk auditee?
x yes __ no
8
SECTION II- FINANCIAL STATEMENT FINDINGS
2011-1 Actuarial Report for Other Post-Employment Benefits Other than Pension
Condition
The City of Shelton did not have an independent actuarial report prepared for the post-
employment benefits other than pension during the past two fiscal years.
Criteria
Generally accepted accounting principles require an independent actuary report to be
completed bi-annually for Municipalities that offer Post-employment benefits other than
pension (OPEB).
Content
The City of Shelton last completed an actuary report for their OPEB during fiscal
year ended June 30, 2009, which provided for an annual actuarial required
contribution of $922,277, however the majority of these costs are covered by
retiree reimbursements. The City manages these costs directly from the general
fund rather than irrevocable trust, since less than 10 employee contracts provide
for the City to fund for such retirement benefits. The remaining other post-
employee benefits require the retiree to fully fund for benefit.
The net OPES obligation reported in the long-term liabilities of the government-wide
financial statements lacks proper supporting documentation.
Cause
The budgetary restraints were compared to the cost of an independent actuary report.
Management felt that, other than the six employees, benefits are fully funded through
reimbursements of retirees and the additional information provided by such a report
would not effect the management of the benefits.
Recommendation
The City should have an Independent Actuarial Report performed for the post-
employment benefits other than the pension for the next fiscal year.
9
SECTION Ill- FEDERAL AWARDS FINDINGS AND QUESTIONED COST
No findings reported.
10
SUMMARY SCHEDULE OF PRIOR YEARS AUDIT FINDINGS
JUNE 30, 2011
The City had no findings reported in the prior years' audit that are required to be
reported in this schedule.
11
LEVITSKY & BERNEY
100 BRADLEY ROAD WOODBRIDGE, CONNECTICUT 06525-2394
....._____ 203 389-5371 FAX 203 389-4430 .
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A DIRECT
AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE IN ACCORDANCE WITH THE STATE SINGLE
AUDIT ACT
Board of Aldermen
City of Shelton
Shelton, Connecticut
Compliance
We have audited the City of Shelton, Connecticut's compliance with the types of
compliance requirements described in the Office of Policy and Management Compliance
Supplement that could have a direct and material effect on each of the City of Shelton's
major state programs for the year ended June 30, 2011. The major state programs are
identified in the summary of auditors' results section of the accompanying schedule of
findings and questioned costs. Compliance with the requirements of laws, regulations,
contracts, and grants applicable to each of its major state programs is the responsibility
of the City of Shelton, Connecticut's management. Our responsibility is to express an
opinion on the City of Shelton, Connecticut's compliance based on our audit.
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 the State Single Audit Act (C.G.S. Sections 4-230 to 4-236). Those
standards and the State Single Audit 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 City of Shelton, Connecticut'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.
Our audit does not provide a legal determination of the City of Shelton, Connecticut's
compliance with those requirements.
In our opinion, the City of Shelton, Connecticut 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 state programs for the year ended June 30, 2011.
12
Internal Control Over Compliance
Management of the City of Shelton, Connecticut is responsible for establishing and
maintaining effective internal control over compliance with requirements of laws,
regulations, contracts, and grants applicable to state programs. In planning and
performing our audit, we considered the City of Shelton, Connecticut's internal control
over compliance with the requirements that could have a direct and material effect on a
major state program to determine the auditing procedures for the purpose of expressing
our opinion on compliance and to test and report on internal control over compliance in
accordance with the State Single Audit Act, 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 City of Shelton, Connecticut'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.
Our consideration of 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 deficiencies, significant
deficiencies or material weaknesses. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses, as defined above.
Schedule of Expenditures of State Financial Assistance
We have audited the financial statements of the governmental activities, the business-
type activities each major fund, and the aggregate remaining fund information of the City
of Shelton, Connecticut as of and for the year ended June 30, 2011, and have issued
our qualified opinion report thereon dated December 20, 2011. Our audit was performed
for the purpose of forming opinions on the financial statements that collectively comprise
the City of Shelton, Connecticut's basic financial statements. The accompanying
schedule of expenditures of state financial assistance is presented for purposes of
additional analysis as required by the State Single Audit Act and is not a required part of
the basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our opinion, is
fairly stated in all material respects, in relation to the basic financial statements taken as
a whole.
13
December 20, 2011
14
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
State Grantor/Pass-Through
Grantor/Program Title
Office of Policy and Management:
Reimbursement of Property Taxes Disability Exemption
Property Tax Relief for Elderly and Totally Disabled Homeowners
Property Tax Relief for Veterans
Property Tax Relief for Manufacturing Machinery & Commercial Vehicles
Local Capital Improvement Program .
Total Office of Policy and Management
Office of State Comptroller:
Payment in Lieu of Taxes (PILOT) on State Owned Property
Department of Education:
Adult Education
Health Services
School Breakfast
Youth Services Bureau
Magnet Schools
School Readiness
Total Department of Education
Connecticut State Library:
Grants to Public Libraries
Connecticard Payments
Historical Document Preservation
Total Connecticut State Library
Department of Transportation:
Town Road Aid Grant STO
Town Road Aid Grant Transportation Fund
Total Department of Transportation
Department of Environmental Protection:
Boat Grant
Total State Financial Assistance
Before Exempt Programs
See Notes to Schedule of Expenditures of State Financial Assistance
15
State Grant Program
Core-CT Number
11 OOO-OPM20600-17011
11 OOO-OPM20600-17018
11 OOO-OPM20600-17024
11000-0PM20600-17031
12050-0PM20600-40254
11 OOO-OSC1591 0-17004
11 OOO-SDE64000-17030
11 OOO-SDE64000-17034
11 OOO-SDE64370-16211
11 OOO-SDE64000-17052
11 OOO-SDE64370-17057
11 OOO-SDE64000-12113
11 OOO-CSL66051-17003
11 OOO-CSL66051-1701 0
12060-CSL66094-35150
12052-DOT57131-43459
12052-DOT57131-43455
12060-DEP44434-34907
Expenditures.
$ 4,094
281,236
29,426
483,928
194,001
$ 992,685
$ 16,576
$ 773,324
32,616
21,042
7,550
33,800
107,000
$ 975,332
$ 2,319
3,725
6,000
$ 12,044
$ 184,038
66,923
$ 250,961
$ 20,244
$ 2,267,842
(continued)
SCHEDULE OF EXPENDITURES OF STATE FINANCIAL ASSISTANCE
State Grantor/Pass-Through
Grantor/Program Title
Exempt Programs
Office of State Comptroller:
Mashantucket Pequot/Mohegan Fund
Public School Transportation
Nonpublic School Transportation
Educational Cost Sharing
Excess Cost Student Based and Equity
School Construction Grants - Principal
Total Exempt Programs
Total Expenditures of State Financial Assistance
See Notes to Schedule of Expenditures of State Financial Assistance
16
State Grant Program
Core-CT Number
12009-0SC1591 0-17005
11 OOO-SDE64000-17027
11 OOO-SDE64000-17049
11 OOO-SDE64000-17041
11 OOO-SDE64000-17047
1301 O-SDE64370-40901
Expenditures
$ 79,621
160,466
32,775
4,277,422
745,810
902,373
$ 6,198,467
$ 8,466,309
NOTES TO THE SCHEDULE OF EXPENDITURES OF
STATE FINANCIAL ASSISTANCE
Various departments and agencies of the State of Connecticut have provided financial
assistance to the City of Shelton, Connecticut through grants and other authorizations in
accordance with the General Statutes of the State of Connecticut. These financial
assistance programs fund several programs including education, public safety and
general government services.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Shelton, Connecticut conform to generally
accepted accounting principles as applicable to governments. The following is a
summary of the more significant policies relating to the aforementioned grant
programs.
Basis of Accounting
The financial statements contained in the City's annual audit report are
prepared on the modified accrual basis. The following is a summary of such
basis:
Revenues are recognized when earned and available. Certain grants are
recognized based on grant award since they are considered entitlement
grants; other grants, such as grants that are dependent upon expenditure
factor for determining eligibility, recognize grant revenue to the extent of
expenditures.
Expenditures are recorded when the related liability is incurred.
Encumbrances are reflected as a reserve against fund balance and
accordingly are not reflected as expenditures.
The Schedule of Expenditures of State Financial Assistance, contained in this
report, is prepared based on regulations established by the State of
Connecticut Office of Policy and Management. In accordance with these
regulations (Section 4-236-22), certain grants are not dependent on
expenditure activity, and accordingly, are considered to be expended in the
fiscal year of receipt. These grant program receipts are reflected in the
expenditures column of the Schedule of Expenditures of State Financial
Assistance.
17
NOTES TO THE SCHEDULE OF EXPENDITURES
STATE FINANCIAL ASSISTANCE
2. LOAN PROGRAMS
165-C
104-C
In accordance with Section 4-236-23(a)(4F) of the Regulations to the State Single
Audit Act, the notes to the Schedule of Expenditures of State Financial Assistance
shall include loans and loan activities. The following is a summary of the loan
program activity for the year ended June 30, 2011:
Department of Environmental Protection: Clean Water Funds
Issue Interest Original Balance Balance
Date Rate Amount Beginning Ending
August19, 008 2.00% $ 2,590,293 2,289,490 111,006 2,178,484
May 30,2008 2.00% 16,548,262 15,149,226 698,631 14,450,595
$ 19,138,555 17,438,716 809,637 16,629,079
18
FOR THE YEAR E:NDED JUNE 30, 2011
I. SUMMARY OF AUDIT RESULTS
Type of auditor's report issued: Qualified
Internal control over financial reporting:
Material weakness (es) identified?
Noncompliance material to financial statements
noted?
State Financial Assistance
Internal control over major programs:
Material weakness (es) identified?
- ~ x ! . . . - yes ___ no
__ yes x no
__ yes
x no
__ yes _...:..x,__ none reported
Type of auditor's report issued on compliance for major programs: Unqualified
Any audit findings disclosed that are required to be
reported in accordance with Section 4-236-24 of the
Regulations to the State Single Audit Act?
__ yes
19
x no
FOR THE FISCAL YEAR ENDED JUNE 30, 2011
The following schedule reflects the major programs included in the audit:
State Grantor and Program State Core- CT Number Expenditures
Office of Policy and Management:
Property Tax Relief for Manufacturing
and Equipment
Property Tax Relief for the Elderly and
Totally Disabled Homeowners
Adult Education
11000-0PM20600-17031 $ 483,928
11 OOO-OPM20600-17018 281 ,236
11000-SDE64000-17030 773,324
Dollar threshold used to distinguish type A and type B Programs $ 200.000
II. FINANCIAL STATEMENTS FINDINGS
We issued reports, dated December 20, 2011 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.
Our report on compliance indicated no reportable instances of noncompliance.
Our report on internal control over financial reporting indicated one significant
deficiency, which was considered a material weakness.
Ill. STATE FINANCIAL ASSISTANCE FINDINGS AND QUESTIONED COSTS
No findings or questioned costs are reported relating to State Financial Assistance
Programs.
20

City of Shelton Financial Reports - FY 2011 Indexed

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

City of Shelton Financial Reports - FY 2011 Indexed

Uploaded by

Copyright:

Available Formats

CITY OF

You might also like