Document Evanston_doc_cd33645b3e

une . , ; I . _ I , , ' , ---PAGE BREAK--- CITY OF EVANSTON, WYOMING FINANCIAL REPORT June 30, 2012 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- CONTENTS Introdnctory Section Title page Table of contents Letter of transmittal Financial Section Independent Auditor's Report Management's Discussion and Analysis (Unaudited) Basic Financial Statements Government-wide Financial Statements Statement of Net Assets Statement of Activities Fund Financial Statements Balance Sheet - Governmental Funds Reconciliation of Governmental Funds Fund Balances to Net Assets of Governmental Activities Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Statement of Net Assets - Proprietary Funds Statement of Revenues, Expenses and Changes in Fund Net Assets - Proprietary Funds Statement of Cash Flows - Proprietary Funds Notes to Financial Statements ii 11 V 3 I I 12 14 16 17 18 19 20 24 26 30 ---PAGE BREAK--- CONTENTS (Continued) Required Supplemeutary Informatiou Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund Combiniug aud Iudividual Fuud Iuformation and Other Supplemeutary Iuformation Combining and Individual Fund Statements and Schedules Combining Balance Sheet - Nonmajor Governmental Funds Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual- Lodging Tax Fund Statement of Net Assets - Nonmajor Proprietary Fund Statement of Revenues, Expenses, and Changes in Fund Net Assets - Nonmajor Proprietary Fund Statement of Cash Flows - Nonmajor Proprietary Fund Statement of Net Assets - Internal Service Fund Statement of Revenues, Expenses and Changes in Fund Net Assets- Internal Service Fund Statement of Cash Flows - Internal Service Fund Statement of Cash Receipts and Disbursements - Youth Drug and Alcohol Court Capital Assets Used in the Operation of Governmeutal Fuuds Capital Assets Used in the Operation of Governmental Funds Schedule by Source Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity Capital Assets Used in the Operation of Governmental Funds Schedule of Changes by Function and Activity iii 45 46 50 52 53 54 56 57 58 60 61 62 63 64 65 66 68 ---PAGE BREAK--- CONTENTS (Continued) Compliance Section 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 IV 69 70 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- Ciiy ofEf/ANSTON~~- . . J • Wyoming November 30,2012 To the Honorable Mayor, Members of the Governing Council, and Citizens of the City of Evanston. State law requires that all general-purpose local governments publish within six months of the close of each fiscal year a complete set of financial statements presented in conformity with generally accepted accounting principle (GAAP) and audited in accordance with generally accepted auditing standards by a firm of licensed certified public accountants. Pursuant to that requirement, we hereby issue the comprehensive annual financial report of the City of Evanston for the fiscal year ended June 30, 2012. This report consists of management's representations concerning the finances of the City of Evanston. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Evanston has established a comprehensive internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Evanston's financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh their benefits, the City of Evanston's comprehensive framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we attest that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. The City of Evanston's financial statements have been audited by Porter, Muirhead, Cornia, Howard, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Evanston, for the fiscal year ended June 30, 2012, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering and unqualified opinion that the City of Evanston's financial statements for the fiscal year ended June 30, 2012, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. The City of Evanston did not require a federally mandated "Single Audit." We had several grants but did not exceed the standards governing the Single Audit requirement. The independent audit requires reporting not only on the fair presentation of the financial statements, but also on the internal controls and compliance with legal requirements involving the administration of federal awards. GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Evanston's MD&A can be found immediately following the report of the independent auditors. Profile of the Government The government, located in the extreme southwest corner of the State of Wyoming, was incorporated June 23, 1888. The government has the power to extend its corporate limits by annexation, which is done periodically when deemed appropriate by the governing council and initiated and approved by a m'\iority of the property owners to be annexed. The government has operated under the mayor-council form of government since incorporated. Policy making and legislative authority are vested in the governing council, which consists of a mayor and a six-member council. The governing council is responsible, among other things, for passing ordinances, adopting the budget, and appointing committees and heads of the government's departments. The council is elected on a non- partisan basis. Council v ---PAGE BREAK--- members are elected to four-year staggered terms with three council members elected every two years. The mayor is elected to a four-year term. The six council members are elected from within their respective wards. There are three wards within the city limits and the mayor is elected at large. The City of Evanston and Uinta County continue to show a population growth as evident by the 2010 census figures which were released recently. Evanston's 2010 population is 12,359 which reflect a 7.4 percent increase from the 2000 census. Uinta County's population is 21,118 and also reflects a 7.0 percent increase during the past decade. The City of Evanston's percentage to total county population did change a little at 58.5 percent, thus the formula used to calculate the sales tax distribution for Evanston changed from the previous year. This will help with inflation costs we have tried to absorb in our department budgets. The local economy continues to be driven by the oil and gas industry, and it is anticipated that this industry will remain the major player in Evanston's economy for the next several years. The continued expansion of the medical professional staffing in the community has a large economical effect. The City of Evanston provides a full range of services, including police, maintenance of streets, recreational activities, water, sewer, sanitation, community development, and youth alcohol and drug court. The annual budget serves as the foundation for the City of Evanston's planning and control. All agencies ofthe City of Evanston are required to submit requests for appropriation to the government before the First Monday in May of each year. The government uses these requests as the starting point for developing a proposed budget. The government then presents this proposed budget to the council for review. The council is required to hold public hearings on the proposed budget and to adopt a final budget by the third Tuesday in June. The appropriated budget is prepared by fund function and department. Department heads may make transfers of appropriations within a department. Transfers of appropriations between departments, however, require the special approval of the governing council. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Evanston operates. Local Economy: The Cities economy continues to be driven by the mineral industry and medical profession fields. The location to the Wasatch Front and no state tax helps Evanston remains a prime location for businesses to move to Wyoming if the economy would get better. The mineral/oil industry has had huge impacts on the economy of Evanston this last year. People are just maintaining instead of spending much money. The decline has affected our sales tax and the economy in our community. Many other companies have had reductions in workforce or some businesses have closed all together and this is not helping our flow of cash in our community therefore, everyone feels the crunch. Evanston is becoming a retirement location and there have been many employees transferred with from our area with the oil companies making changes because of the economy. This year we saw a decline in the housing market in general. This is not indicative of activity in Evanston but the entire country. Economic development is a high priority within the city to recruit new business adding diversity to the economic picture of our mineral and oil industry presently affecting our community. This year the economy has had a large effect on our government. We continue to try to attract new business to increase our tax basis. Long-term financial planning: Declining revenues continue to dictate the city's approach towards capital construction and restricts a conservative approach for operating budgets. This is a difficult challenge, especially with the escalating costs of health insurance and the slower returns on investments. The increase costs of fuel, housing materials, and other utilities, have required vi ---PAGE BREAK--- the city to evaluate many policies and operating efficiencies. The declining sales tax has had a large impact on our budgets. We continue to maintain services but capital construction is only accomplished with the funding coming from grants. However, we maintain a positive attitude toward the long term effect on our community and continue to do long term planning. The City of Evanston continues to move forward with technology, training, and the demand of services. A continued search for grants remains our top focus. The economy of the country with the oil and gas prices fluctuating continues to affect our capital projects. Cash management policies and practices: Cash temporarily idle during the year was invested in WYO- STAR investment pool, Wyoming Government Investment Fund, and GNMA bonds. The maturity of the investments depends on the type of investment. The government's investment policy is to minimize credit and market risks while maintaining a competitive yield on its portfolio. Accordingly, deposits were either insured by Federal Depository Insurance or collateralized. All collateral on deposits was held either by the government, its agent or a fiscal institution's trust department in the government's name. Risk management: The government continued a limited risk management program with various control techniques, induding employee accident prevention training. This training is intended to minimize accident- related losses. The risk management objectives of the City of Evanston are the contiguity of essential services to the city, the safety of City employees and the public and the avoidance of unnecessary and unreasonable liability exposure. Pension and other post-employment benefits: The City of Evanston participates in several single-employer defined benefit pension plans for its employees. The City became involved with the Wyoming Retirement System to help secure employee's retirement. Our health premiums have increased by 50% due to continued health care expenses. During the fiscal year we made several changes to our insurance by increasing the deductible amount to help maintain good effective insurance coverage for our employees. Awards and Acknowledgment The City of Evanston received the Government Finance Officers Association award of Certificate of Achievement for Excellence in Financial Reporting for thirteen years. Recent changes to the statistical section requirements to meet GASB standards have required the Evanston City Council to reassess demand on time and record keeping, prompting the city to no longer participate in this reporting. However, this does not lower the level of efficiency in the organization to achieve the highest level of accounting reporting possible by the City of Evanston staff. We maintain the generally accepted accounting principles and applicable legal requirements necessary for detailed financial accountability. The preparation of this report could not have been accomplished without the dedicated services of the entire staff of the finance department. The members of other departments of the City of Evanston need to be thanked for their contribution in helping the financial department accomplish accurate reports. Sincere appreciation is expressed to the Mayor and the City Council for their continued interest and support in conducting the financial operations of the City in a responsible and progressive manner. Kathy Defa, City Treasurer Vll ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- FINANCIAL SECTION ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Evanston, Wyoming 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 Evanston, Wyoming, as of and for the year ended June 30, 2012, 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 Evanston'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 the 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. In our opinion, the financial statements referred to previously present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Evanston, Wyoming, as of June 30, 2012, 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 a report dated November 30, 2012 on our consideration of the City of Evanston'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 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 letter of transmittal has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Evanston, Wyoming Page 2 Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and budgetary comparison information on pages 3 through 10 and 46 through 49 be presented to supplement the basic financial statements, Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to management's discussion and analysis in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during the audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. The budgetary comparison information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The budgetary information has been subjected to the auditing procedures applied during the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the budgetary comparison is fairly stated in all material respects in relation to the basic financial statements as a whole. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Evanston's basic financial statements. The other supplementary information on pages 53 through 69 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The other supplementary information is the responsibility of management and was derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The other supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the other supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. The accompanying basic financial statements, required supplementary information, combining and individual fund information and other supplementary information, and our independent auditor's reports are for the purpose of meeting local, state and federal requirements and are for the use of those entities and the management and the City Council and should not be used or relied upon by any other party for any purpose. Additional users of these basic financial statements, required supplementary information, combining and individual fund information and other supplementary information, and our independent auditor's reports are hereby advised that the liability of Porter, Muirhead, Cornia & Howard to third party users who use or rely on this information may be limited pursuant to 1995 Wyoming Session Laws, Chapter 155 creating Wyoming Statute §33-3-201. November 30, 2012 2 Porter, Muirhead, Cornia & Howard Certified Public Accountants ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) As management of the City of Evanston, Wyoming, we offer readers of the City of Evanston, Wyoming's financial statements this narrative overview and analysis of the financial activities of the City of Evanston, Wyoming's for the fiscal year ended June 30, 2012. Financial Highlights • The assets of the City of Evanston, Wyoming exceeded its liabilities at the close of the most recent fiscal year by $105,859,803 (net assets). Of this amount, $36,219,990 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $336,257. • As of the close of the current fiscal year, the City of Evanston, Wyoming's governmental funds reported combined ending fund balances of $10,098,704. • At the end of the current fiscal year, unreserved fund balance for the general fund was $8,656,513. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City of Evanston, Wyoming's basic financial statements. The City of Evanston, Wyoming's basic financial statements comprise three components: I) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a broad overview of the City of Evanston, Wyoming's finances, in a manner similar to a private- sector business. The statement of net assets presents information on all of the City of Evanston, Wyoming's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Evanston, Wyoming is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods uncollected taxes and earned but unused vacation leave). Both of the government-wide financial statements distinguish functions of the City of Evanston, Wyoming that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges. (business-type activities). The governmental activities of the City of Evanston, Wyoming include general government, public safety, highways, streets, and culture and recreation. The business-type activities of the City of Evanston, Wyoming include water, sewer and other non-major enterprise operations. The government-wide financial statements can be found on pages 12-15 of this report. Fund financial statements. A fond is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Evanston, Wyoming like other state and local governments uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. All of the funds of the City of Evanston, Wyoming can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. 3 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Evanston, Wyoming maintains 2 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the general fund and the debt service fund, both of which are considered to be major funds, data from the other two governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City of Evanston, Wyoming adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the general fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 16-19 of this report. Proprietary funds. The City of Evanston, Wyoming maintains two different types of proprietary funds. Enterprise fonds are used to report the same functions presented as bUSiness-type activities in the government- wide financial statements. The City of Evanston, Wyoming uses enterprise funds to account for its Water, and Sewer operation. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Evanston, Wyoming various functions. The City of Evanston, Wyoming uses internal service funds to account for its fleet of vehicles and office supplies. Because both of these services predominantly benefit governmental rather than business-type functions; they have been included within governmental activities in the government-wide statements. Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Water and Sewer operation, all of which are considered to be major funds of the City of Evanston, Wyoming. The basic proprietary fund financial statements can be found on 20-29 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes to the financial statements can be found on page 30-45 of this report. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Evanston, Wyoming's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 46-50 of this report. 4 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) The combing statements for non-major governmental funds and internal service funds can be found on pages 51- 54 ofthis report. Govemment-wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Evanston, Wyoming's net assets reflect its investment in capital assets land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. The City of Evanston, Wyoming uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City of Evanston, Wyoming's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. City of Evanston, Wyoming Net Assets Governmental Business~type Activities Activities Total 2011 2012 2011 2012 2011 2012 Current assets $ 10,651,075 $ 11,071,602 $ 26,689,812 $ 27.644.528 $ 37,340,887 $ 38,716,130 Capital assets Net Accum. Dep 36,326,505 36,125,486 33,850,575 32,936,456 70,177,080 69,061,942 Non Current Assets - - - - - - Total assets 46,977,580 47,197,088 60,540,387 60,580,984 107,517,967 107,778,072 Current Liabilities 592,778 546,843 302,214 295,742 894,992 842,585 Total Non-Current liabilities 783,176 696,055 316,253 379,627 1,099,429 1,075,682 Total Liabilities 1,375,954 1,242,898 618,467 675,369 1,994,421 1,918,267 Net assets: Invested in capital assets, net of related debt 36,326,505 36,125,486 33,668,201 32,785,682 69,994,706 68,911,168 Restricted 205,847 205,847 465,433 522,798 671,280 728,645 Unrestricted 9,069,274 9,622,855 25,788,286 26,597,135 34,857,560 36,219,990 Total net assets $ 45,601,626 $ 45,954,188 $ 59,921,920 $ 59,905,615 $ 105,523,546 $ 105,859,803 An additional portion of the City of Evanston, Wyoming's net assets represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets $36,219,990 may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Evanston, Wyoming is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business-type activities. 5 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) Governmental activities. Governmental activities for the City of Evanston, Wyoming are provided in the following table, City of Evanston, Wyoming's Changes in Net Assets Governmental Business-type Activities Activities Total 2011 2012 2011 2012 2011 2012 Revenues: Program revenues: Charges for services $ 488,557 $ 496,259 $ 4,383,665 $ 4,435,352 $ 4,872,222 $ 4,931,611 Operating grants and contributions 2,352,031 1,276,065 - - 2,352,031 1,276,065 General revenues: Property taxes 865,092 960,110 - - 865,092 960,110 Other taxes 5,743,439 6,\70,054 6,283 81 5,749,722 6,170,135 Grants and contributions not restricted to specific programs 2,432,952 2,482,602 - - 2,432,952 2,482,602 Unrestricted Investment Earnings 166,473 129,512 167,892 106,456 334,365 235,968 Miscellaneous Revenue \32,680 279,966 (978) (56) 131,702 279,910 Transfers (811,375) (699,000) 811,375 699,000 - - Total revenues 11,369,849 11,095,568 5,368,237 5,240,833 16,738,086 16,336,401 Expenses: General government 4,253,402 4,891,961 - - 4,253,402 4,891,961 Public safety 2,866,679 2,867,968 - - 2,866,679 2,867,968 Public Works 1,234,499 1,465,117 - - 1,234,499 1,465,117 Recreation 1,531,946 1,512,239 - - 1,531,946 1,512,239 Interest on long-term debt 8,675 5,721 - - 8,675 5,721 Water - - 2,315,592 2,595,872 2,315,592 2,595,872 Sewer - - 767,526 762,166 767,526 762,166 Golf - - 1,066,751 1,111,701 1,066,751 1,111,701 Sanitation - - 800,576 786,359 800,576 786,359 Other Non Major Enterprise Funds - - 2,500 1,040 2,500 1,040 Total expenses 9,895,201 10,743,006 4,952,945 5,257,\38 14,848,146 16,000,144 Increase in net assets before transfers Change in net assets 1,474,648 352,562 415,292 (16,305) 1,889,940 336,257 Net assets - 6/30111 44,126,978 45,601,626 59,506,628 59,921,920 102,554,222 102,554,222 Net assets - 6/30112 $ 45,601,626 $ 45,954,188 $ 59,921,920 $ 59,905,615 $ 104,444,162 $ 102,890,479 6 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) The City of Evanston, Wyoming is very active in searching and obtaining grants to maintain the level of service and living conditions for our residents. We have received Homeland Security grants along with Alcohol and Tobacco Grants. Other awarded grants, to the City of Evanston, Wyoming furnished resources to support functions such as the Underpass Restoration, Roundhouse Turntable Restoration and the Strand Theater Restoration. The City of Evanston, Wyoming continues to aggressively undertaken an endeavor for the youth of our community through the installment of a Youth Drug and Alcohol Court that is funded by the State of Wyoming grant. Expenses and Program Revenues - Governmental Activities General Government is our major expense. This division is comprised of City Council, Judicial, Executive, Attorney, Community Development, Treasurer/Clerk, Urban Renewal, General Services, and Youth Services. Our Public Works Departments include Engineering, Administration, and Street Divisions. For the most part, expenses closely paralleled inflation and growth in the demand for services. To monitor the expense of services to the community, The City of Evanston, Wyoming has structured the divisions to better analyze our expenses. Therefore, the City of Evanston, Wyoming can review the cost of specific services to provide a more fiscal responsibility. Revenues by Source - Governmental Activities Revenues were monitored closely during the fiscal year due to sales tax, mineral royalties, and interest income Business-type activities. Business-type activities increased City of Evanston, Wyoming assets as follows. With the completion of the new water treatment plant, the City of Evanston, Wyoming feels confident that it will help monitor the water flow to improve service and reduce the negative impact when drought conditions exist. Revenues were increased to help maintain expenses for the water/sewer services. Financial Analysis of tlte Government's Funds As noted earlier, the City of Evanston, Wyoming uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental funds. The focus on the City of Evanston, Wyoming's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Evanston, Wyoming's financing requirements. In particular, unreservedfund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. The general fund is the chief operating fund of the City of Evanston, Wyoming. At the end of the current fiscal year, unreserved fund balance of the general fund was $8,656,513 while total fund balance reached $10,098,704. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. The general fund balance of the City of Evanston, Wyoming increased by $140,553, during the current fiscal year. • Sales tax rate increased tax revenues by $434,260. • Property tax increased by $95,018. • Transfer offunds to Golf and Cemetery Fund of $699,000. • Grants and contributions increased by $49,650. • Investment earnings were reduced by $36,961. • Charges for Services increased by $7,702 7 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) The long-term liability ($696,055) including accrued compensated absences, are not due and payable in the current period and therefore are not reported in the funds. Proprietary funds. The City of Evanston, Wyoming's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. Unrestricted net assets of the Water, Sewer, Sanitation and other Enterprise Funds at the end of the year amounted to $26,597,135. The total growth in unrestricted net assets for these funds was $808,849. Other factors concerning the finances of these funds have already been addressed in the discussion of the City of Evanston, Wyoming's business-type activities. General Fund Budgetary Highlights Differences between the original and the final amended budget was a $661,149 increase in appropriations. The governing body increased the original budgets for a one-time bonus for all city employees. It has been several years that no cost of living increases or wage increases have been given and felt the need to award employees with the one-time bonus. A brief summery follows: • $307,265 capital outlay for grants and proposed capital projects. • $353,884 one-time bonus for all employees because of not receiving any pay increases for several years. Capital Asset and Debt Administration Capital assets. The City of Evanston, Wyoming's investment in capital assets for its governmental and business type activities as of June 30, 2012 amounts to $69,061,942 (net of accumulated depreciation). This investment in capital assets included land, buildings and system, improvements, machinery and equipment, park facilities, roads, highways, and bridges. Major capital asset events during the current fiscal year included the following: • Underpass Reconstruction • Roundhouse Turntable • City Hall Retrofit - Heating/Air System • Machine Shop Energy Efficiency • Strand Theater • Rec Center Retrofit - Heating! Air System • Water Treatment Plant Upgrades • Waste Water Treatment Plant Upgrades 8 ---PAGE BREAK--- Land $ Construction in Progress Buildings and system Machinery and Equipment Infrastructure Total Accum. Depreciation Total $ CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) City of Evanston, Wyoming's Capital Assets (Net of Depreciation) Governmental Business-type Activities Activities 2011 2012 201 I 2012 20,067,992 $ 20,067,992 $ 733,694 $ 733,694 555,967 10,700 - 27,741 27,795,288 29,229,583 65,335,143 65,456,701 4,992,097 5,186,515 2,297,481 2,694,736 17,588,070 17,588,070 - - (34,672,909) (35,957,374) (34,515,743) (35,976,416) 36,326,505 $ 36,125,486 $ 33,850,575 $ 32,936,456 Total 2011 2012 $ 20,801,686 $ 20,801,686 555,967 38,441 93,130,43 I 94,686,284 7,289,578 7,881,251 17,588,070 17,588,070 (69,188,652) (71,933,790) $ 70,177,080 $ 69,061,942 Additional information on the City of Evanston, Wyoming's capital assets can be found in Note 3 on pages 39- 41 of this report. Long-term debt. At the end of the current fiscal year, the City of Evanston, Wyoming had total bonded debt outstanding of $1,075,682. City of Evanston's Outstanding Debt enera (galIon an Revenue Bon s G lObI' d d Governmental Business-lYpe Total 2011 2012 2011 2012 2011 2012 Governmental Activities Long Term $ 799,159 $ 696,055 $ - $ - $ 799,159 $ 696,055 Accrued Compensated Absences - - 173,802 228,853 173,802 228,853 Lease Purchase Obligation - - 182,375 150,774 182,375 150,774 Total $ 799,159 $ 696,055 $ 356,177 $ 379,627 $ 1,155,336 $ 1,075,682 The City of Evanston, Wyoming's total debt is $1,075,682 for the current fiscal year. Additional information on the City of Evanston, Wyoming's long-term debt can be found in Note 3 on pages 41-42 of this report. 9 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING MANAGEMENT'S DISCUSSION AND ANALYSIS June 30, 2012 (Unaudited) Ecollomic Factors alld Next Year's Budgets alld Rates • The unemployment rate for the City of Evanston, Wyoming is currently 5.7 percent, which is a decrease from a rate of 6.5 percent a year ago. This compares to the state's average unemployment rate of 5.8 percent and the national average rate of 8.3 percent. Wyoming's employment added 1,400 jobs this last year with the largest job losses occurring in the mining industry and construction. The local economy continues to suffer driven by the mineral industry and decline of construction. All businesses are just trying to hold on and brave the economic storm. All of these factors were considered in preparing the City of Evanston, Wyoming budget for the 2012 fiscal year. Requests for Illformatioll The financial report is designed to provide a general overview of the City of Evanston, Wyoming's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this repOlt or requests for additional financial information should be addressed to the Office of the Treasurer, 1200 Main Street, City of Evanston, Wyoming, 82930. 10 ---PAGE BREAK--- BASIC FINANCIAL STATEMENTS 11 ---PAGE BREAK--- ASSETS Current assets Cash and cash equivalents Investments at fair value Receivables (net of allowance for uncollectibles) Accounts receivable Accrued interest Property taxes Internal balances Inventory Total current assets Capital assets Capital assets not being depreciated Land Construction in progress Capital assets being depreciated Buildings and systems Machinery and equipment Infrastructure Less accumulated depreciation Total capital assets (net of accumulated depreciation) Total assets CITY OF EVANSTON, WYOMING STATEMENT OF NET ASSETS June 30, 2012 $ Governmental Activities 1,625,545 33,696,371 640,553 35,387 43,513 (24,975,533) 5,766 11,071,602 20,067,992 10,700 29,229,583 5,186,515 17,588,070 72,082,860 (35,957,374) 36,125,486 47,197,088 Primary Government $ Business-type Activities 2,077,225 7,660 532,989 24,975,533 51,121 27,644,528 733,694 27,741 65,456,701 2,694,736 68,912,872 (35,976,416) 32,936,456 60,580,984 See accompanying notes to the financial statements 12 $ Total 3,702,770 33,704,031 1,173,542 35,387 43,513 56,887 38,716,130 20,801,686 38,441 94,686,284 7,881,251 17,588,070 140,995,732 (71,933,790) 69,061,942 107,778,072 (Continued) ---PAGE BREAK--- LIABILITIES Current liabilities Accounts payable Accrued payroll Accrued liabilities Court bonds payable Deposits payable Total current liabilities Noncurrent liabilities Due in one year Due in more than one year Total noncurrent liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Restricted for Landfill maintenance Perpetual fund Expendable Nonexpendable Unrestricted Total net assets CITY OF EVANSTON, WYOMING STATEMENT OF NET ASSETS (CONTINUED) June 30, 2012 Primary Government Governmental Business-type Activities Activities $ 148,323 $ 194,796 145,216 44,381 241,654 11,650 56,565 546,843 295,742 34,803 50,824 661,252 328,803 696,055 379,627 1,242,898 675,369 36,125,486 32,785,682 522,798 105,847 100,000 9,622,855 26,597,135 $ 45,954,188 $ 59,905,615 See accompanying notes to the financial statements 13 Total $ 343,119 189,597 241,654 11,650 56,565 842,585 85,627 990,055 1,075,682 1,918,267 68,911,168 522,798 105,847 100,000 36,219,990 $ 105,859,803 ---PAGE BREAK--- Function/Programs Governmental activities: General government Public safety Public works Culture and recreation Interest on long-term debt Total governmental activities Business-type activities: Water Sewer Golf Sanitation Other nonmajor enterprise funds Total business-type activities Total primary government CITY OF EVANSTON, WYOMING STATEMENT OF ACTIVITIES Year Ended June 30, 2012 Charges for Expenses Services $ 4,891,961 $ 107,168 2,867,968 334,966 1,465,117 1,512,239 54,125 5,721 10,743,006 496,259 2,595,872 2,121,684 762,166 1,048,644 1,111,701 452,721 786,359 779,997 1,040 32,306 5,257,138 4,435,352 $ 16,000,144 $ 4,93[,611 General revenues Property taxes and other taxes Sales tax Franchise taxes Motor vehicle taxes Capital facilities tax Program Revenues Operating Grants and Contributions $ 1,276,065 1,276,065 $ 1,276,065 Grants and contributions not restricted to specific programs Unrestricted investment earnings Miscellaneous revenue Transfers Total general revenues and transfers Change in net assets Net assets - beginning of year Net assets - end of year See accompanying notes to the financial statements 14 Capital Grants and Contributions $ $ ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Assets Primary Government Governmental Business-type Activities Activities Total $ (3,508,728) $ $ (3,508,728) (2,533,002) (2,533,002) (1,465,117) (1,465,117) (1,458,114) (1,458,114) (5,721) (5,721) (8,970,682) (8,970,682) (474,188) (474,188) 286,478 286,478 (658,980) (658,980) (6,362) (6,362) 31,266 31,266 (821,786) (821,786) (8,970,682) (821,786) (9,792,468) 960,110 960,110 5,720,296 5,720,296 184,873 184,873 264,885 264,885 81 81 2,482,602 2,482,602 129,512 106,456 235,968 279,966 (56) 279,910 (699,000) 699,000 9,323,244 805,481 10,128,725 352,562 (16,305) 336,257 45,601,626 59,921,920 105,523,546 ~ 45,954,188 ~ 59,905,615 ~ 105,859,803 15 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING BALANCE SHEET Governmental Funds June 30, 2012 Other Governmental General Funds ASSETS Cash and cash equivalents $ $ 1,517,126 Investments at fair value 33,696,371 Receivables (net of allowance for uncollectibles) Accounts receivable 601,628 38,304 Accrued interest 35,387 Property taxes 43,513 Total assets $ 34,376,899 $ 1.555.430 LIABILITIES AND FUND BALANCES Current liabilities Accounts payable $ 134,852 $ 13,239 Accrued payroll 145,216 Accrued liabilities 241,654 Court bonds payable 11,650 Deferred revenues 211,481 Due to other funds 23,255,033 Current portion of advance payable to water fund 238,096 Total current liabilities 24,237,982 13,239 Noncurrent liabilities Noncurrent portion of advance payable to water fund 1,482,404 Total noncurrent liabilities 1,482,404 Total liabilities 25,720,386 13,239 Fund balances Nonspendable Permanent fund principal 100,000 Restricted, cemetery perpetual care 105,847 Assigned, emergency repairs 5,500,000 Unassigned 3,156,513 1,336,344 Total fund balances 8,656,513 1,542,191 Total liabilities and fund balances $ 34,376,899 $ 1,555,430 See accom panying notes to the financial statements 16 Total Governmental Funds $ 1,517,126 33,696,371 639,932 35,387 43,513 $ 35,932,329 $ 148,091 145,216 241,654 11,650 211,481 23,255,033 238,096 24,251,221 1,482,404 1,482,404 25,733,625 100,000 105,847 5,500,000 4,492,857 10,198,704 $ 35,932,329 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING RECONCILIATION OF GOVERNMENTAL FUNDS FUND BALANCES TO NET ASSETS OF GOVERNMENTAL ACTIVITIES June 30, 2012 Total governmental fund balances Amounts reported for governmental activities in the statement of net assets are different because: Long-tenn liabilities, including accrued compensated absences, are not due and payable in the current period and therefore, are not reported in the funds. Accrued compensated absences Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. General government capital assets (net of accumulated depreciation) $ Permanent fund capital assets (net of accumulated depreciation) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Deferred property taxes Deferred grant revenue Deferred - cash in lieu of land development Internal service funds are used by management to charge the costs of certain activities, such as motor vehicle costs, and vision care, to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net assets. This is the amount of unrestricted net assets of the internal service funds. Motor Vehicle Fund Current assets Current liabilities Net assets of governmental activities See accompanying notes to the financial statements 17 35,678,040 447,446 14,291 59,232 137,958 114,807 (235) $ 10,198,704 (696,055) 36,125,486 211,481 114,572 $ 45,954,188 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES Governmental Funds Year Ended June 30, 2012 Other General Governmental Fund Funds REVENUES Taxes $ 6,814,504 $ 266,988 Licenses and permits 121,291 Fines and forfeitures 283,836 Intergovernmental revenues 3,850,356 Charges for services 120,463 54,125 Interest and miscellaneous 152,677 81,658 Total revenues 11,343,127 402,771 EXPENDITURES Current General government 2,807,429 Public safety and transportation 2,865,702 Public works 1,513,242 Health, welfare and recreation 1,123,024 325,682 Intergovernmental expenditures 656,914 Capital outlay 1,349,263 Total expenditures 10,315,574 325,682 Excess of revenues over expenditures 1,027,553 77,089 OTHER FINANCING SOURCES (USES) Transfers in 183,000 Transfers out (887,000) Total other financing sources (uses) (887,000) 183,000 Net change in fund balances 140,553 260,089 Fund balances - beginning of year 8,515,960 1,282,102 Fund balances - end of year $ 8,656,513 $ 1,542,191 See accompanying notes to the financial statements 18 Total Governmental Funds $ 7,081,492 121,291 283,836 3,850,356 174,588 234,335 11,745,898 2,807,429 2,865,702 1,513,242 1,448,706 656,914 1,349,263 10,641,256 1,104,642 183,000 (887,000) (704,000) 400,642 9,798,062 $ 10,198,704 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES Year Ended June 30, 20 I 2 Amounts reported for governmental activities in the statement of activities are different because: Net change in fund balances - total governmental funds 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 outlay exceeded depreciation in the current period. General government Capital outlay Additional construction in progress Less completed construction in progress Depreciation expense The disposal of capital assets that results in a loss (cost is greater than the accumulated depreciation) does not require the use of current financial resources of governmental funds. Thus, that change is not recorded in the governmental funds. This is the net effect of these differences in the treatment ofthe disposal of capital assets. Disposal of capital assets (cost basis) Accumulated depreciation Compensated absences reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Compensated absences as of June 30, 20 II Compensated absences as of June 30, 2012 Internal service activities are accounted for in a separate fund. However, in the statement of activities the activity of the Internal Service Fund has been eliminated and the excess revenue over expenditures has been recognized. Internal service fund changes in net assets: Motor Vehicle Fund Certain revenues are not recognized as current financial resources and, therefore, are not reported as revenues in governmental funds. Deferred revenue as of June 30, 2011 Deferred revenue as of June 30, 2012 Change in net assets of governmental activities $ 1,770,003 10,700 (555,967) (1,420,993) (141,290) 136,528 799,159 (696,055) (162,809) 211,481 See accompanying notes to the financial statements 19 $ $ 400,642 (196,257) (4,762) 103,104 1,163 48,672 352,562 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF NET ASSETS Proprietary Funds June 30, 2012 Business-type Activities - Enterprise Funds Water Sewer Fund Fund ASSETS Current assets Cash and cash equivalents $ $ Investments, at fair value 7,660 Accounts receivable (net of allowance for uncollectibles) 345,282 113,576 Due from other funds 12,013,168 9,546,865 Inventory Current portion of advance receivable from general fund 238,096 Total current assets 12,604,206 9,660,441 Noncurrent assets Long term portion of advance receivable from general fund 1,482,404 Total noncurrent assets 1,482,404 Capital assets Land 161,500 240,005 Buildings and systems 43,813,651 15,310,439 Machinery and equipment 431,047 383,208 44,433,939 15,933,652 Less accumulated depreciation 19,572,520 13,429) 10 Total capital assets (net of accumulated depreciation) 24,861,419 2,504,542 Total assets 38,948,029 12,164,983 See accompanying notes to the financial statements 20 Golf Fund $ 1,100,597 51,121 1,151,718 312,189 6,267,611 640,693 7,220,493 1,971 ,200 5,249,293 6,401,011 ---PAGE BREAK--- $ Business-type Activities - Enterprise Funds Sanitation Fund 776,142 71,951 1,695,000 2,543,093 20,000 65,000 1,239,788 1,324,788 1,003,586 32l,202 2,864,295 $ Other Enterprise Fund 200,486 2,180 202,666 202,666 Totals $ 2,077,225 7,660 532,989 23,255,033 51,121 238,096 26,162,124 1,482,404 1,482,404 733,694 65,456,701 2,694,736 68,912,872 35,976,416 32,936,456 60,580,984 21 Governmental Activities- Internal Service Fund $ 108,419 622 5,766 114,807 278,623 44,291 322,914 322,603 311 115,118 (Continued) ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF NET ASSETS (CONTINUED) Proprietary Funds June 30, 2012 Business-type Activities - Enterprise Funds Water Fund LIABILITIES Current liabilities Accounts payable $ 126,174 $ Accrued payroll 25,082 Deposits payable 56,565 Total current liabilities 207,821 Noncurrent liabilities Due within one year 119,825 Due in more than one year 6,307 Total noncurrent liabilities 126,132 Total liabilities 333,953 NET ASSETS Invested in capital assets, net of related debt 24,861,419 Restricted for landfill maintenance Unrestricted 13,752,657 Total net assets $ 38,614,076 $ See accompanying notes to the financial statements 22 Sewer Golf Fund Fund 20,926 $ 20,554 11,099 32,025 20,554 52,765 111,393 2,777 39,381 55,542 150,774 87,567 171,328 2,504,542 5,098,519 9,572,874 1,131,164 12,077,416 $ 6,229,683 ---PAGE BREAK--- $ $ Business-type Activities - Enterprise Funds Sanitation Fund 27,142 8,200 35,342 44,820 2,359 47,179 82,521 321,202 522,798 1,937,774 2,781,774 $ $ Other Enterprise Fund 202,666 202,666 $ $ Totals 194,796 44,381 56,565 295,742 328,803 50,824 379,627 675,369 32,785,682 522,798 26,597,135 59,905,615 23 Governmental Activities - Internal Service Fund $ 235 235 235 311 114,572 $ 114,883 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS Proprietary Funds Year Ended June 30, 2012 Business-type Activities - Enterprise Funds Water Sewer Fund Fund Operating revenues Charges for services $ 2,079,472 $ 1,040,649 Miscellaneous 42,212 7,995 Total operating revenues 2,121,684 1,048,644 Operating expenses PersOlmel services 917,590 389,090 Contractual services 54,219 Repairs and maintenance 106,805 43,608 Supplies 425,647 38,924 Interest expense Miscellaneous 4,527 20,685 Capital outlay 17,163 Depreciation 974,132 146,302 Utilities 112,952 106,394 Total operating expenses 2,595,872 762,166 Operating income (loss) {474,188} 286,478 Nonoperating revenues interest income 60,608 36,333 Capital facility tax 81 Gain (loss) on sales of assets {256} Total nonoperating revenues 60,433 36,333 Income (loss) before transfers {413,755} 322,811 Transfers in Total transfers and contributions Change in net assets (413,755) 322,811 Total net assets - beginning of year 39,027,831 11,754,605 Total net assets - end of year $ 38,614,076 $ 12,077,416 See accompanying notes to the financial statements 24 Golf Fund $ 437,321 15,400 452,721 410,637 287,972 152,444 7,781 9,951 242,916 1,111,701 {658,980} 200 200 {658,780} 699,000 699,000 40,220 6,189,463 $ 6,229,683 ---PAGE BREAK--- Business-t~Qe Activities - EnterQrise Funds Governmental Activities Other Internal Sanitation Enterprise Service Fund Fund Totals Fund $ 779,997 $ 24,806 $ 4,362,245 $ 55,078 7,500 73,107 779,997 32,306 4,435,352 55,078 283,856 1,590,536 464,856 37,573 1,040 476,998 307,515 924,530 58,915 7,781 42,212 77,375 2,280 19,443 112,923 1,476,273 219,346 786,359 1,040 5,257,138 58,915 (6,362) 31 ,266 (821,786) (3,837) 9,515 106,456 81 (56) 9,515 106,481 3,153 31,266 (715,305) (3,837) 699,000 5,000 699,000 5,000 3,153 31,266 (16,305) 1,163 2,778,621 171,400 59,921,920 113,720 $ 2,781,774 $ 202,666 $ 59,905,615 $ 114,883 25 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF CASH FLOWS Proprietary Funds Year Ended June 30, 2012 Business-type Activities - Enterprise Funds Water Sewer Fund Fund Cash flows from operating activities Receipts from customers $ 1,980,779 $ 1,043,139 Receipts from other funds Payments to suppliers for services (643,532) (228,255) Payments to employees for services (879,743) (362,643) Settlement of intetfund operating activities (430,395) (582,329) Net cash and cash equivalents provided (used) by operating activities 27,109 (\30,088) Cash flows from non capital financing activities Capital facility tax 81 Transfers from other funds Net cash and cash equivalents provided by noncapital financing activities 81 Cash flows from capital and related financing activities Principal payments Sales of property and equipment Acquisitions of property and equipment (\34,387) (l97,609) Net cash and cash equivalents used by capital and related financing activities (\34,387) (197,609) Cash flows from investing activities Interest on investments 64,197 36,331 Net cash and cash equivalents provided by investing activities 107,197 36,331 Net increase in cash and cash equivalents (291,366) Cash and cash equivalents - beginning of year 291,366 Cash and cash equivalents - end of year $ ~ See accompanying notes to the financial statements 26 Golf Fund $ 452,721 (890,153) (437,432) 699,000 699,000 (31,601) 200 (31,40l) 230,167 870,430 $ 1,100,597 ---PAGE BREAK--- Business-type Activities - Enterprise Funds Governmental Activities - Other Internal Sanitation Enterprise Service Fund Fund Totals Fund $ 781,012 $ 24,905 $ 4,282,556 $ (1,040) (1,040) 55,411 (392,734) (2,154,674) (57,363) (281,466) (1,523,852) 890,231 7,500 (114,993) 997,043 31,365 487,997 (1,952) 81 699,000 5,000 699,081 5,000 (31,601) 200 (230,416) (562,412) (230,416) (593,813) 9,515 110,043 9,515 153,043 776,142 31,365 746,308 3,048 169,121 1,330,917 105,371 $ 776,142 $ 200,486 $ 2,077,225 $ 108,419 (Continued) 27 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF CASH FLOWS (CONTINUED) Proprietary Funds Year Ended June 30, 2012 Business-type Activities - Enterprise Funds Water Fund Reconciliation of operating income (loss) to net cash provided (used) by operating activities Operating income (loss) $ (474,188) $ Adjustments to reconcile income to net cash and cash equivalents provided by operating activities Depreciation 974,132 Change in operating assets and liabilities Accounts receivable (143,236) Due from other funds (430,395) Inventory Accounts payable 60,618 Accrued payroll 6,839 Accrued liabilities 31,008 Deposits payable 2,331 Net cash and cash equivalents provided (used) by operating activities $ 27,\09 $ Supplemental Information Non-cash investing, capital and financing activities: Net decrease in the fair value of investments $ 3,587 $ See accompanying notes to the financial statements 28 Sewer Golf Fund Fund 286,478 $ (658,980) 146,302 242,916 (5,505) (582,329) 15,128 (1,481) (36,496) 2,451 23,996 (130,088) $ (437,432) $ ---PAGE BREAK--- $ $ $ Business-type Activities - Enterprise Funds Sanitation Fnnd (6,362) 112,923 1,015 890,231 (3,154) 2,390 997,043 $ $ $ Other Enterprise Funds 31,266 99 31,365 Totals $ (821,786) 1,476,273 (147,627) (122,493) 15,128 19,487 11,680 55,004 2,331 $ 487,997 $ 3,587 29 Governmental Activities - Internal Service Fund $ (3,837) 333 4,463 (2,911) $ (1,952) $ ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 1. Summary of Siguificaut Accounting Policies Reporting Entity The financial statements of the City of Evanston, Wyoming (the City) include the accounts of all City operations. The City provides a broad range of services to citizens, including general government, public safety, streets, sanitation and health, cultural and park facilities and social services. It also operates the water, sewer and other sanitation utilities and several recreational facilities. The City of Evanston is a municipal corporation governed by an elected mayor and six elected council members. The City serves as the nucleus for the reporting entity under the provisions of GASB Statement No. 14, as amended by GASB No. 39, for its basic financial statements. Using this premise, the City is not financially accountable for any other organizations and thus, includes only the financial activity of the various funds of the City within its basic financial statements. The City of Evanston has no component units nor is it considered a component unit of any other government. The accounting policies of the City of Evanston conform to generally accepted accounting principles as applicable to governments. The following is a summary of the more significant policies: Govemment-Wide and Fund Financial Statements The government-wide financial statements the statement of net assets and the statement of changes in net assets) report information on all of the nonfidnciary activities of the primary government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are repOlted separately from 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 segments 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 restricted 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. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary funds. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. 30 ---PAGE BREAK--- Note 1. CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Summary of Siguificant Accounting Policies (Continned) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in the individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. The City reports the following major governmental funds: The general fond is the City's primary operating fund. It accounts for all financial resources of the general government, except those required to be accounted for in another fund. The Drug Court is included as part of the general fund of the City. The City reports the following major proprietary funds: The water fond accounts for the activities of the City's water distribution system. The sewer fund accounts for the activities of the City sewage treatment plant and collection system. The golf fond accounts for the activities of the City's golf courSe. The sanitation fond accounts for the activities of the City's sanitation department. Additionally, the City reports the following fund types: The special revenue fonds are used to account for the proceeds of designated specific revenue sources that are restricted to expenditures for specified purposes. The permanent fund is used to account for resources legally restricted for use in the care and maintenance of the City's cemetery. The internal service fund is used for motor vehicle services provided to other departments or agencies of the City, or to other governments, on a cost reimbursement basis. Private-sector standards of accounting and financial reporting issued prior to December I, 1989, generally are followed in both the government-wide and 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 business-type activities and enterprise funds, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the government's water and sewer function and various other functions of the government. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include I) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. 31 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 1. Summary of Significant Accounting Policies (Continued) Measurement Focus, Basis of Accounting, and Financial Statement Presentation (Continued) Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for sales and services. The City also recognizes as operating revenue the portion of tap fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Assets, Liabilities, and Net Assets or Equity Deposits and Investments The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition. State statutes authorize the City to invest in securities issued or guaranteed by the u.S. Treasury or agencies of the United States government, bank certificates of deposit, shares or savings certificates of savings and loan associations, Tennessee Valley Authority bonds and notes and export-import bank notes and guaranteed participations. Investments for the City are reported at fair value. Fair value is determined using the latest bid price or by the closing exchange price at the statements of net assets date. A significant portion of the Board's investment activity is conducted in a pooled investment account with the State of Wyoming, State Treasurer's office. The State Treasurer's Investment Pool (WYOSTAR) operates in accordance with appropriate state laws and regulations. The reported value ofthe pool is the same as the fair value of the pool shares. Receivables and Payables Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" the current portion of interfund loans) or "advances to/from other funds" the non-current portion of interfund loans). All other outstanding balances between funds are reported as "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." All trade and property tax receivables are shown net of an allowance for uncollectibles. Property Taxes Property taxes attach as an enforceable lien on property as of May I I. Taxes are levied on or about August I and payable in two installments on September I and March I. Uinta County bills and collects its own property taxes and also taxes for all municipalities and political subdivisions within the County including the City. City property tax revenues are recognized when levied to the extent that they result in current receivables, which means when collected within the current period or expected to be collected within 60 days of the fiscal year end to be used to pay liabilities of the current period. The City is permitted by Wyoming Statutes to levy taxes up to 8 mills of assessed valuation for all purposes, exclusive of state revenue, except for the payment of public debt and interest thereon. The combined tax rate to finance general government services other than the payment of principal and interest on long-term debt for the year ended June 30, 2012, was 8 mills which mean that the City has levied to the maximum amount available. 32 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 1. Summary of Significant Accounting Policies (Continued) Assets, Liabilities, and Net Assets or Equity (Continued) IlIveIltories alld Prepaid Items All inventories are valued at cost using the first-in/first-out (FIFO) method. Inventories of governmental funds are recorded as expenditures when consumed rather than when purchased. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Compensated Absences Benefits It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay benefits. All vacation pay and sick leave is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost. In case of the initial capitalization of general infrastructure assets those reported by governmental activities) the government chose to include all such items regardless of their acquisition date or amount. The government was able to estimate the historical cost for the initial reporting of these assets through backtrending estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). As the government constructs or acquires additional capital assets each period, including infrastructure assets, they are capitalized and reported at historical cost. The reported value excludes normal maintenance and repairs which are essentially amounts spent in relation to capital assets that do not increase the capacity or efficiency of the item or extend its useful life beyond the original estimate. In the case of donations, the government values these capital assets at the estimated fair value of the item at the date of its donation. Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the construction phase of capital assets of business-type activities is included as part of the capitalized value of the assets constructed. Property, plant, and equipment of the City, is depreciated using the straight line method over the following estimated useful lives: Assets Buildings Building improvements Public domain infrastructure System infrastructure Vehicles Office equipment Computer equipment 33 Years 50 20 50 30 5 5 5 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 1. Summary of Significant Accounting Policies (Continued) Assets, Liabilities, and Net Assets or Equity (Continued) Long-Term Obligations In the government-wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietaty fund type statement of net assets. Fund Equity Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable, restricted, committed, assigned or unassigned. Nonspendable fund balance cannot be spent because of its form. Restricted fund balance has limitations imposed by creditors, grantors, or contributors or by enabling legislation or constitutional provisions. Committed fund balance is a limitation imposed by the City's council through approval of resolutions. Assigned fund balances is a limitation imposed by a designee of the City's council. Unassigned fund balance in the general fund is the net resources in excess of what can be properly classified in one of the above four categories. Negative unassigned fund balance in other governmental funds represents excess expenditures incurred over the amounts restricted, committed, or assigned to those purposes. Proprietary fund equity is classified the same as in the government-wide statements. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those unrestricted fund balance classifications can be used. For the government-wide financial statements, net assets are reported as restricted when constraints placed on net assets are either: Externally imposed by creditors (such as debt covenants), grantors, contributors, or laws or regulations of the governments or imposed by law through constitutional provision or enabling legislation. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Note 2. Stewardship, Compliance, and Accounting Budgets and Budgetary Accounting The City follows these procedures in establishing the budgetary data reflected in the financial statements: I. Prior to May 15, the City Treasurer submits to the City Council a proposed operating budget for the fiscal year commencing the following July I. The operating budget includes proposed expenditures and the means of financing them. 2. A public hearing is conducted on the third Tuesday in June to obtain public comments. 3. The budget is adopted no later than twenty-four hours after the third Tuesday in June. 34 ---PAGE BREAK--- Note 2. CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Stewardship, Compliance, and Accounting (Continued) Budgets and Budgetary Accounting (Continued) 4. At the request of the City Treasurer or upon its own motion after publication of notice, the City Council may by resolution transfer any unencumbered or unexpended appropriation balance or part thereof from one fund or department to another. Management may amend the budget at the object line item level without seeking Council approval provided the fund or department's total budget is not modified. 5. No officer or employee of the City shall make any expenditure or encumbrance in excess of the total appropriation for any department. 6. All appropriations excluding appropriations for capital projects shall lapse following the close of the budget year to the extent they are not expended. 7. The appropriated budget is prepared by fund, function, and department using the accrual basis of accounting. The government's department heads may make transfers of appropriations within a department. Transfers of appropriations between departments require the approval of the council. The legal level of budgetary control the level at which expenditures may not legally exceed appropriations) is the department level. 8. Encumbrance accounting, under which purchase orders, contracts, and other commitments for the expenditure of monies are recorded in order to reserve that portion of the applicable appropriation, is not employed as an extension offormal budgetary integration. Note 3. Detailed Notes on all Deposits and Investments As of June 30, 2012, the City had the following investments: Investment Maturities (In Years) Fair Interest Less More Investment Investment Type Value Rate Than 1 1-5 6-10 Than 10 Ratings GNMA $ 55,281 5.50-9.50% $ $ $ 9,254 $46,489 Not Rated FHLB 10,235,548 1.50-2.04% 10,250,548 AANAaa* Certificates of deposit 187,694 4.00-5.00% 187,694 Not Rated State Treasurer's investment pool (WYO-STAR) 23,225,508 23,225,508 Not Rated $ 33,704,031 $ 23,225,508 $ 187,694 $ 10,259,802 $46,489 * These investments were rated as AAA by Standard & Poor's and Aaa by Moody's Investors Service 35 ---PAGE BREAK--- Note 3. CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Detailed Notes on all Funds (Continued) Interest rate risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The City's investments are held in an external pooled investment account, and as a means of limiting its exposure to fair value losses arising from rising interest rates, the City attempts to match its investment maturities to expected cash flow needs. With this investment focus, investments are expected to reach maturity with limited gains or losses. Credit risk. State law does not allow governments to invest in commercial paper and corporate bonds. Therefore, the City's investments have limited exposure to credit risk. As of June 30, 2012, the State Treasurer's Investment Pool (WYO-STAR) did not have a quality service credit rating. Deposits and Investments (Continued) Concentration of credit risk. The City does not have a formal policy that mandates or limits an investment in anyone issuer as of a specified percentage of the City's total investments. The composition of the investment portfolio of City at June 30, 2012 is as follows: Fair Percent of Deposit and Investment Types Value Portfolio GNMA $ 55,281 0.21% FHLB 10,235,548 28.83% Certificate of deposits 187,694 1.16% WYO-STAR Investment Pool 23,225,508 69.79% $ 33,704,031 100% Custodial credit risk - deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City does not have a formal policy for custodial credit risk; however, State statutes require that the City's deposits in excess of the Federal depository insurance amount be collateralized. At June 30, 2012, the City's deposits were fully insured or collateralized as required by statutes. Custodial credit risk - investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City does not have a formal policy for custodial credit risk; however, all City investments were held by brokers or the Treasurer of the State of Wyoming in the City's name. Equity in Pooled Cas" and Investments - Internal Balances Except when required by trust agreements or City policy, the operating cash of certain funds are pooled into one bank account andlor investment not identified with any particular fund. The accounting records for each applicable fund reflect equity in the pooled cash andlor investments or its actual cash balance. When a particular fund overdraws its share of the pooled cash or investment account, the deficit is recorded as a payable in the fund and a corresponding entry is made in another fund to reflect the receivable from the other fund. 36 ---PAGE BREAK--- Note 3. CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Detailed Notes on all Funds (Continued) Equity in Pooled Cash and Investments - Internal Balances (Continued) The following is a detailed reconciliation of the City's individual fund level financial statement balances for the year ended June 30, 2012, to the government-wide statements. Due to/from other funds Governmental activities General fund Business-type activities Enterprise funds Water fund Sewer fund Sanitation fund Advances to/from other funds Governmental activities General fund Business-type activities Water fund Government-Wide Statements Internal Balances Receivable Payable $ $24,975,533 24,975,533 $ 24,975,533 $24,975,533 $ $ $ $ Fund Level Financial Statements Due From/To Other Funds Receivable Payable $ $ 23,255,033 12,013,168 9,546,865 1,695,000 $23255 033 $23,255033 $ $ 1,720,500 1,720,500 $ I 720500 $ 1,720500 The water fund advanced the general fund $2,000,000 for the purpose of paying the construction costs incurred for the Restoration of Section One of the Roundhouse Project. The interest will be calculated using a rate equal to the WYO-STAR Investment account. Year ending Advance Payable June 30, Water Fund Principal Interest 2013 $ 250,000 $ 5,581 2014 250,000 4,910 2015 250,000 4,099 2016 250,000 3,288 2017 250,000 2,477 2018-2020 470,500 2,521 $ 1,720,500 $ 22,876 37 ---PAGE BREAK--- Note 3. Receivables CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Detailed Notes on all Funds (Continued) As of year end, the City's accounts receivable including the applicable allowances for uncollectible accounts are as follows: Receivables Customer Grants Franchise fees Sales and use tax Municipal court Miscellaneous Allowance for bad debts Interfund Transfers $ General 82,588 42,508 425,585 334,245 (283,298) $601628 Water Fund $345,282 $345282 Sewer Fund $113,576 $113576 Sanitation Fund $ 71,951 $ 71,951 Nonmajor and Other Funds $ 2,180 38,304 $ 40.484 Total $ 532,989 82,588 42,508 425,585 334,245 38,304 (283,298) $1172,921 The following is a detailed reconciliation of the City's interfund transfers for the year ended June 30, 2012. Transfers Transfers In Out Governmental Activities: General Fund $ $ 887,000 Internal Service Fund Motor Vehicle Fund 5,000 Permanent Fund Cemetery Fund 183,000 Internal Service Funds Motor Vehicle Fund Total governmental activities 188,000 887,000 Business-type Activities: Golf Fund 699,000 Total business-type activities 699,000 Total governmental wide $ 887,000 $ 887,000 Transfers are used to I) move revenues from the fund with collection authorization to the debt service fund as debt service principal and interest payments become due, 2) move restricted amounts from borrowings to the debt service fund to establish mandatory reserve accounts, 3) move unrestricted general fund revenues to finance various programs that the government must account for in other funds in accordance with budgetary authorizations, including amounts provided as subsidies or matching funds for various grant programs. 38 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 3. Detailed Notes on all Funds (Continued) Capital Assets Capital asset activity for the year ended June 30, 2012 was as follows: Beginning Balance Additions Governmental activities Capital assets not being depreciated Land $20,067,992 $ Construction in progress 555,967 10,700 Total capital assets not being depreciated 20,623,959 10,700 Capital assets being depreciated Buildings and systems 27,795,286 1,434,297 Machinery and equipment 4,992,099 335,706 Infrastructure 17,588,070 Total capital assets being depreciated 50,375,455 1,770,003 Less accumulated depreciation for Buildings and systems 13,245,476 1,163,495 Machinery and equipment 4,393,080 187,042 Infrastructure 17,034,353 70,456 Total accumulated depreciation 34,672,909 1,420,993 Total capital assets, being depreciated, net 15,702,546 349,010 Governmental activities capital assets, net $36,326,505 $ 359,710 39 Ending Deletions Balance $ $20,067,992 555,967 10,700 555,967 20,078,692 29,229,583 141,290 5,186,515 17,588,070 141,290 52,004,168 14,408,971 136,528 4,443,594 17,104,809 136,528 35,957,374 4,762 16,046,794 $560,729 $36,125,486 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 3. Detailed Notes on All Funds (Continued) Capital Assets (Colltillued) Business-type activities Capital assets not being depreciated Land Construction in progress Total capital assets not being depreciated Capital assets being depreciated Buildings and systems Machinery and equipment Total capital assets being depreciated Less accumulated depreciation for Buildings and systems Machinery and equipment Total accumulated depreciation Total capital assets, being depreciated, net Business-type activities capital assets, net $ Beginning Balance 733,694 733,694 65,335,143 2,297,481 67,632,624 32,747,687 1,768,056 34,515,743 33,116,881 $ 33,850,575 Additions $ 27,741 27,741 121,558 412,855 534,413 1,282,307 193,966 1,476,273 (941,860) $ (914,119) Deletions $ 15,844 15,844 15,844 15,844 $ $ Ending Balance 733,694 27,741 761,435 65,456,701 2,694,736 68,151,437 34,029,994 1,946,422 35,976,416 32,175,021 $ 32,936,456 Machinery and equipment that was purchased through a lease purchase obligation is included in machinery and equipment of the business-type activities. The purchase price of that equipment was $187,500 with accumulated depreciation of $40,582 and the current year depreciation expense of $37,500 was expensed in business-type activities. 40 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 3. Detailed Notes on All Funds (Continued) Capital Assets (Continued) Depreciation expense was charged to functions/programs of the City as follows: Governmental activities General government Public safety Public works, including depreciation of general infrastructure assets Capital assets held in the permanent fund Total depreciation expense for governmental activities Business-type activities Water fund Sewer fund Golf fund Sanitation fund Total depreciation expense for business-type activities Long-Term Debt The changes on long-term debt for the year ended June 30, 2012 were as follows: Governmental activities Compensated absences Governmental activities long-term liabilities $ $ Balance July 1, 2011 799,159 799,159 Additions Reductions $ $ 103,104 $ $ 103,104 $ $ $ $ Balance June 30, 2012 $ 696,055 $ 696,055 1,170,037 94,637 118,027 38,292 1,420,993 974,132 146,302 242,916 112,923 1,476,273 Due Within One Year $ 34,803 $ 34803 For the governmental activities, compensated absences are generally liquidated by the general fund. Business-type activities Compensated absences $ 173,802 $ 55,051 $ $ 228,853 $ 11,443 Lease purchase obligation 182,375 31,601 150,774 39,381 Business-type activities long-term liabilities $ 356,177 $ 55,051 $ 31,601 $ 379,627 $ 50,824 41 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 3. Detailed Notes on All Funds (Continued) Long-Term Debt (Collfinued) Debt outstanding, (excluding accrued compensated absences) at June 30, 2012 is comprised of the following Issue: $187,500 lease purchase obligation, interest rate 4.792%, payable principal and interest payments of $3,282 through June 2015, serviced by the Golf Fund. $ 150,774 Future minimum lease payments under all debt except compensated absences outstanding as of June 30, 2012 are as follows: Year ending June 30, 2013 2014 2015 Less amount representing interest Net present value of minimum lease payment Assigned Fund Balances $ 39,381 39,381 85,907 164,669 (13,895) $ 150,774 The City Council has established tentative plans for financial resources to be utilized in future periods. Such plans or intent are subject to change and may never be legally authorized or result in expenditures. As of June 30, 2012 the City Council had established the following tentative plans: Emergency building repairs as follows: City Hall Police and Fire Buildings Public Works Buildings Recreation Center 42 $ 1,000,000 1,500,000 1,000,000 2,000,000 $ 5,500,000 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Note 3. Detailed Notes on All Funds (Continued) Construction Commitments The City has several outstanding construction projects as of June 30, 2012. The projects include street improvements, stabilization of the machine shop, improvements to the recreation center, and the completion of the water treatment facilities. At year end, the City's commitments with contractors are as follows: Project Name Governmental-activities General Fund Safe Route to Schools Total governmental activities Business-type activities Water Fund Water Plant Fence Total business-type activities Total primary government Risk Management $ $ Original Contract Amount 200,000 200,000 57,000 57,000 257,000 $ $ Expended To Date 10,700 10,700 27,741 27,741 38,441 $ $ Remaining Commitment 189,300 189,300 29,259 29,259 218,559 The City is exposed to various risks of loss related to torts, theft of, damage to and destruction of assets, errors and omissions, injuries to employees and natural disasters. During the year ended June 30, 2012 the City contracted with various insurance companies for property insurance (including boiler and machinery), general liability insurance, professional insurance and vehicle insurance. Settlements have not exceeded coverage's in any of the past three fiscal years. The government has had no significant reductions in insurance coverage from coverage in the prior years. The Government pays into the State Worker's Compensations System a premium based on a rate per covered payroll. This rate is calculated based on accident history and administrative costs. Retiremellt Plans The City contributes to the Wyoming Retirement System ("System") a statewide cost sharing multiple-employer public employee retirement (PERS). The System provides retirement, disability and death benefits according to the predetermined formulas. Benefits are established by Title 9, Chapter 3 of Wyoming Statutes. The System issued a publicly available financial report that includes audited financial statements and required supplementary information for the System. The report may be obtained by writing to the Wyoming Retirement System, Fifth Floor West, 6101 Yellowstone Road, Cheyenne, Wyoming 82002. Plan members are required to contribute 7.00% of their annual covered salary and the City is required to contribute 7.12% of the annual covered payroll. Legislation enacted in 1979 allows the employer to pay any or all of the employee's contribution in addition to the matching contribution. The City currently pays 11.44% of the required total contributions and the employees contribute the remaining portion, 2.68% of the required total contribution. Contribution rates are established by Title 9, Chapter 3 ofthe Wyoming Statutes. The City's contributions to the System for the years ended June 30, 2012, 2011, and 2010, were $254,552 and $256,644 and $232,464 respectively and the employees' contributions were $59,634 and $56,278 and $29,058, respectively, equal to the required contribution for the year. 43 ---PAGE BREAK--- Note 3. CITY OF EVANSTON, WYOMING NOTES TO FINANCIAL STATEMENTS June 30, 2012 Detailed Notes on all Funds (Continued) Retirement Plans (Continued) The City's police officers also participate in the Wyoming Retirement System. The Police Pension Plan is funded by amounts withheld from participating employees' salaries and by contributions from the City. These contributions are determined by state statutes and as of June 30, 20 I 2 the percentages to be contributed on compensation were 8.60% for the employees and the same for the City. The City currently pays I 1.44% of the required total contributions and the police officers contribute the remaining portion, 5.76% of the required total contribution. For the years ended June 30, 2012, 201 I, and 2010 the contributions to the Police Pension Plan were $232,524, $241,990 and $241,991 respectively. The City's portion of these contributions were $154,655, $157,868 and $140,692 respectively and the employees' contributions were $77,869, $84,123 and $101,299, respectively, equal to the required contributions for each year. Note 4. Operating Lease - Lessor The City leased a building to a tenant at the rate of $8,000 per month under a month to month agreement. The cost of the leased property is $3,617,843 with accumulated depreciation of $362,032. Rental income from this lease was $80,000 for the year ending June 30, 2012. Note 5. Subsequent Events On August 2, 20 I 2, a lawsuit was filed against the City of Evanston. The case is currently in discovery and the City of Evanston intends to contest the case. Attorneys for the City believe there is a good likelihood of a favorable outcome. It is too soon to estimate any potential loss to the City in the event of an unfavorable outcome. 44 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION 45 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- CITY OF EVANSTON, WYOMING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL General Fund Year Ended June 30, 2012 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) PROPERTY TAXES AND OTHER TAXES Property taxes $ 445,000 $ 445,000 $ 644,450 $ 199,450 Motor vehicle tax 225,000 225,000 264,519 39,519 Sales and use taxes 4,299,000 4,299,000 5,720,296 1,421,296 Franchise fees 138,500 138,500 184,873 46,373 Car company tax 200 200 366 166 5,107,700 5,107,700 6,814,504 1,706,638 LICENSES AND PERMITS 77,600 77,600 121,291 43,691 INTERGOVERNMENTAL REVENUES State gasoline tax 270,000 270,000 329,096 59,096 Severance tax 450,000 450,000 453,539 3,539 Cigarette tax 100,000 100,000 115,807 15,807 State funding 913,510 913,510 913,510 Grants 1,153,849 1,400,659 1,367,754 (32,905) Mineral royalties 675,000 675,000 670,650 (4,350) 3,562,359 3,809,169 3,850,356 41,187 CHARGES FOR SERVICES Public safety fees 20,000 20,000 32,[92 [2,192 Permits and fees 8,900 8,900 88,27[ 79,371 28,900 28,900 120,463 91,563 F[NES AND FORFEITURES 209,000 209,000 283,836 74,836 MISCELLANEOUS REVENUES Interest earnings 259,000 259,000 127,854 (131,146) Leases 15,300 15,300 19,475 4,175 Gain on sale of fixed assets 1,000 1,000 5,348 4,348 275,300 275,300 152,677 (122,623) Total revenues 9,260,859 9,507,669 11,343,127 1,835,292 (Continued) 46 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) General Fund Year Ended June 30, 2012 Budgeted Amounts Original Final Actual GENERAL GOVERNMENT City Council Salaries and benefits $ 134,379 $ 136,440 $ 105,980 Contractual 90,554 90,554 63,891 224,933 226,994 169,871 Attorney Contractual 157,000 157,000 141,624 157,000 157,000 141,624 Judicial Salaries and benefits 56,133 61,053 63,544 Contractual 74,827 74,827 52,992 130,960 135,880 116,536 Mayor Contractual 6,100 6,100 200 6,100 6,100 200 Community Development Salaries and benefits 245,829 256,619 231,247 Contractual 55,554 55,554 23,363 301,383 312,173 254,610 Administrative Salaries and benefits 135,210 140,179 132,156 Contractual 113,906 113,906 45,884 249,116 254,085 178,040 Treasury Salaries and benefits 227,511 237,576 233,694 Contractual 107,325 107,325 73,727 334,836 344,901 307,421 Clerk Salaries and benefits 205,549 215,544 211,040 Contractual 80,084 80,084 35,159 285,633 295,628 246,199 Emergency Reserve Contractual 225,000 225,000 37,072 225,000 225,000 37,072 Urban Renewal Salaries and benefits 61,449 64,219 61,489 Contractual 43,735 43,735 12,518 105,184 107,954 74,007 Economic Development Contractual 21,250 21,250 13,907 21,250 21,250 13,907 47 Variance with Final Budget Positive (Negative) $ 30,460 26,663 57,123 15,376 15,376 (2,491 ) 21,835 19,344 5,900 5,900 25,372 32,191 57,563 8,023 68,022 76,045 3,882 33,598 37,480 4,504 44,925 49,429 187,928 187,928 2,730 31,217 33,947 7,343 7.343 (Continued) ---PAGE BREAK--- CITY OF EVANSTON, WYOMING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) General Fund Year Ended June 30, 2012 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL (CONTINUED) General Fund Year Ended June 30, 2012 Variance with Final Budget Budgeted Amounts Positive Original Final Actual (Negative) PARKS AND RECREATION Administrative Contractual $ 1,137,488 $ 1,163,888 $ 1,123,024 $ 40,864 1,137,488 1,163,888 1,123,024 40,864 Total parks and recreation 1,137,488 1,163,888 1,123,024 40,864 PUBLIC WORKS Administrative Salaries and benefits 181,129 189,199 173,206 15,993 Contractual 53,266 53,266 22,660 30,606 234,395 242,465 195,866 46,599 Engineering Salaries and benefits 66,465 68,912 54,855 14,057 Contractual 37,717 37,717 11,734 25,983 104,182 106,629 66,589 40,040 Streets Salaries and benefits 546,514 568,899 435,015 133,884 Contractual 1,148,163 1,148,163 815,772 332,391 1,694,677 1,717,062 1,250,787 466,275 Total public works 2,033,254 2,066,156 1,513,242 552,914 INTERGOVERNMENTAL EXPENDITURES 865,106 885,106 656,914 228,192 CAPITAL OUTLAY 1,395,250 1,702,515 1,349,263 353,252 Total expenditures 12,022,363 12,683,512 10,315,574 2,367,938 Excess (deficiency) of revenues over expenditures {2,761,504) p,175,843) 1,027,553 4,203,396 Other financing (uses) Transfers (out) {1,080,520) {1,080,520) {887,000) 193,520 Total other financing (uses) {1,080,520) {1,080,520) {887,000) 193,520 Net change in fund balance (3,842,024) (4,256,363) 140,553 4,396,916 Fund balance - beginning of year 8,515,960 8,515,960 8,515,960 Fund balance - end of year $ 4,673,936 $ 4,259,597 $ 8,656,513 $ 4,396,916 49 ---PAGE BREAK--- COMBINING AND INDIVIDUAL FUND INFORMATION AND OTHER SUPPLEMENTARY INFORMATION 50 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special Revenue Funds are used to account for the proceeds of designated specific revenue sources that are restricted to expenditure for specified purposes. • The Lodging Tax Fund is used to account for the special 3% lodging tax that is restricted for the purpose of promoting tourism within the City. • The Economic Development Fund is used to account for the lease with InsulTech, LLC and Wyoming Incorporated that is restricted for the purpose of economic development of the City. PERMANENT FUND Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not principal, may be used for the purposes that support the reporting government's programs. • Permanent Fund - Cemetery Fund - This fund is used to account for the assets held by the City for the ongoing maintenance of the public cemetery. 51 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- ASSETS Cash and cash equivalents Accounts receivable Total assets LIABILITIES Accounts payable Total liabilities FUND BALANCES Nonspendable Pennanent fund principal Restricted Unassigned Total fund balances Total liabilities and fund balances CITY OF EVANSTON, WYOMING COMBINING BALANCE SHEET Nonmajor Governmental Funds June 30, 2012 Lodging Tax Fund Special Revenue Economic Development Fund Total $ 760,790 20,234 $ 294,507 8,000 $ 1,055,297 28,234 $ 781,024 $ 302,507 $ 1,083,531 $ 11,777 $ $ 11,777 11,777 11,777 769,247 302,507 1,071,754 769,247 302,507 1,071,754 $ 781,024 $ 302,507 $ 1,083,531 52 Permanent Fund Cemetery Fund $ 461,829 10,070 $ 471,899 $ 1,462 1,462 100,000 105,847 264,590 470,437 $ 471,899 Total Nonmajor Governmental Funds $ 1,517,126 38,304 $ 1,555,430 $ 13,239 13,239 100,000 105,847 1,336,344 1,542,191 $ 1,555,430 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES Nonmajor Governmental Funds Year Ended June 30, 2012 Pennanent Special Revenue Fund Lodging Economic Tax Development Cemetery Fund Fund Total Fund Revenues Taxes $ 266,988 $ $ 266,988 $ Charges for services 54,125 Rental income 80,000 80,000 Interest and miscellaneous 132 132 1,526 Total revenues 267,120 80,000 347,120 55,651 Expenditures Current Health, welfare and recreation 144,406 144,406 181,276 Capital outlay Total expenditures 144,406 144,406 181,276 Excess (deficiency) of revenues over expenditures 122,714 80,000 202,714 (125,625) Other Financing Sources Transfers in 183,000 Total other financing sources 183,000 Net change in fund balances 122,714 80,000 202,714 57,375 Fund balances - beginning of year 646,533 222,507 869,040 413,062 Fund balances - end of year $ 769,247 $ 302,507 $ 1,071,754 $ 470,437 53 Total Nonmajor Governmental Funds $ 266,988 54,125 80,000 1,658 402,771 325,682 325,682 77,089 183,000 183,000 260,089 1,282,102 $ 1,542,191 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING SCHEDULE OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL Special Revenue Fund - Lodging Tax Year Ended June 30, 2012 Variance with final Budget Budgeted Amounts Positive Original Final Actual (Negative) Revenues Lodging tax $ 200,000 $ 230,000 $ 266,988 $ 36,988 Interest 50 50 132 82 Total revenues 200,050 230,050 267,120 37,070 Expenditures General expenses 650 650 333 317 Marketing and promotion 159,900 189,900 115,099 74,801 Matching fund/grants 22,000 22,000 11,474 10,526 Contractual services 17,500 17,500 17,500 Total expenditures 200,050 230,050 144,406 85,644 Excess of revenues over expenditures 122,714 122,714 Fund balance - beginning of year 646,533 646,533 646,533 124,182 Fund balance - end of year $ 646,533 $ 646,533 $ 769,247 $ 122,714 54 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- NONMAJOR PROPRIETARY FUNDS Enterprise funds are used to account for operations that are financed and operated in a manner similar to private business enterprises - where the intent of the government's council is that the costs of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges; or where the government's council has decided that periodic determination of net income is appropriate for accountability purposes. STORM WATER MAINTENANCE FUND The Storm Water Maintenance Fund is an enterprise fund used to account for the maintenance of the City's Storm Water system. 55 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- ASSETS Current assets Cash and cash equivalents Accounts receivable (net of allowance for uncollectibles) Total current assets Capital assets Total capital assets (net of accumulated depreciation) Total assets LIABILITIES Current liabilities Total current liabilities Total liabilities NET ASSETS Invested in capital assets, net of related debt Unassigned Total net assets CITY OF EVANSTON, WYOMING STATEMENT OF NET ASSETS Nonmajor Proprietary Fund June 30,2012 Business-type Activities - Enterprise Funds $ $ 56 Storm Water Maintenance Fund 200,486 2,180 202,666 202,666 202,666 202,666 $ $ Total Other Enterprise Fund 200,486 2,180 202,666 202,666 202,666 202,666 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS Nonmajor Proprietary Fund Year Ended June 30, 2012 Business-type Activities - Enterprise Funds Total Storm Water Other Enterprise Maintenance Fund Fund Operating revenues Charges for services $ 24,806 $ 24,806 Miscellaneous 7,500 7,500 Total operating revenues 32,306 32,306 Operating expenses Repairs and maintenance 1,040 1,040 Total operating expenses 1,040 1,040 Operating income 31,266 31,266 Nonoperating revenues Total nonoperating revenues Change in net assets 31,266 31,266 Total net assets - beginning of year 171,400 171,400 Total net assets - end of year $ 202,666 $ 202,666 57 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF CASH FLOWS Nonmajor Proprietary Fund Year Ended June 30, 2012 Business-type Activities - Enterprise Funds Cash flows from operating activities: Cash received from customers Cash payments to suppliers for services Other operating activities Net cash operating activities Cash flows from noncapital financing activities: Payments to other funds Net cash provided from noncapital financing activities Cash flows from capital and related financing activities: Net cash used for capital and related financing activities Net increase in cash and cash equivalents Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year Reconciliation of operating loss to net cash provided by operating activities: Operating loss Adjustments to reconcile income to net cash provided by operating activities: Changes in assets and liabilities: Accounts receivable Net cash operating activities 58 $ $ $ $ Storm Water Maintenance Fund 24,905 (1,040) 7,500 31,365 31,365 169,121 200,486 31,266 99 31,365 $ $ $ $ Total Other Enterprise Fund 24,905 (1,040) 7,500 31,365 31,365 169,121 200,486 31,266 99 31,365 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- INTERNAL SERVICE FUNDS Internal Service Funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the City, or to other governments, on a cost-reimbursement basis. MOTOR VEHICLE FUND Motor Vehicle Fund - This fund is used to account for the financing of motor vehicle services provided for the various departments of the City. 59 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF NET ASSETS Internal Service Fund June 30, 2012 Motor Vehicle Fund Total ASSETS Current assets Cash and cash equivalents $ 108,419 $ 108,419 Accounts receivable 622 622 Inventory 5,766 5,766 Total current assets 114,807 114,807 Capital assets Building and systems 278,623 278,623 Machinery and equipment 44,291 44,291 322,914 322,914 Less accumulated depreciation 322,603 322,603 Total capital assets (net of accumulated depreciation) 311 311 Total assets 115,118 115,118 LIABILITIES Accounts payable 235 235 Total liabilities 235 235 NET ASSETS Invested in capital assets, net of related debt 311 311 Unrestricted 114,572 114,572 Total net assets $ 114,883 $ 114,883 60 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS Internal Service Fund Year Ended June 30, 2012 Motor Vehicle Fund Operating revenues Charges for services $ 55,078 Total operating revenues 55,078 Operating expenses Reproduction 11,345 Supplies 47,570 Total operating expenses 58,915 Operating loss (3,837) Non operating revenues Transfer in 5,000 Change in net assets 1,163 Net assets - beginning of year 113,720 Net assets - end of year $ 114,883 61 Total $ 55,078 55,078 11,345 47,570 58,915 (3,837) 5,000 1,163 113,720 $ 114,883 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF CASH FLOWS Internal Service Fund Year Ended June 30, 2012 Cash flows from operating activities Cash received from other funds Cash payments to suppliers for services Net cash provided by operating activities Cash flows from noncapital financing activities Cash flows from capital and related financing activities Cash flows from investing activities Net increase in cash and cash equivalents Cash and cash equivalents - beginning of year Cash and cash equivalents - end of year Reconciliation of operating income to net cash provided by operating activities Operating income Accounts receivable Inventory Accounts payable Net cash provided by operating activities 62 Motor Vehicle Fund $ 55,4 I I (57,363} (1,952} 5,000 3,048 105,371 $ Hl8 !l12 $ (3,837) 333 4,463 (2,911} $ (1,952} Total $ 55,4 I I (57,363} (1,952} 5,000 3,048 105,371 $ lOH12 $ (3,837) 333 4,463 (2,91 l} $ (1,952} ---PAGE BREAK--- CITY OF EVANSTON, WYOMING STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS Youth Drug and Alcohol Court Receipts Cash match Participant fees State grants Total received Disbursements Salaries Employee benefits Professional services contract Office expense Education and training Awards Drug Court contract Detention Medical health Total disbursements Excess receipts over disbursements Cash available - beginning of year Cash - end of year Year Ended June 30, 2012 63 $ 48,003 $ 247 129,382 177,632 78,423 34,524 15,518 9,100 694 181 9,323 5,880 22,329 175,972 1,660 6,073 7,733 ---PAGE BREAK--- CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS 64 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- CITY OF EVANSTON, WYOMING CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Schedule By Source* Governmental funds capital assets Land Building Machinery and equipment Infrastructure Construction in progress Total governmental funds capital assets June 30, 2012 Investments in governmental funds capital assets by source General fund Total governmental funds capital assets $ 20,067,992 28,950,960 5,142,224 17,588,070 10,700 $ 71,759,946 $ 71,759,946 $ 71,759,946 *This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 65 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING CAPITAL ASSETS USED IN THE OPERA nON OF GOVERNMENT FUNDS Schedule By Function and Activity " June 30, 2012 Building Machinery and and Function and Activity Land Improvements Equipment General Government General services $ 20,067,992 $ 28,876,149 $ 708,519 Council 55,734 Engineering 89,242 Judicial 4,433 Economic development 6,900 Executive 30,048 Treasurer 43,899 Clerk 3,062 Youth services 81,740 Purchasing 5,318 Community development 142,564 Total general government 20,067,992 28,876,149 1,171,459 Public Safety Police department 1,150,283 Total safety 1,150,283 Highway, Streets and Recreation Public works 70,996 Streets 2,124,436 Parks and recreation 74,811 625,050 Total highway, streets and recreation 74,811 2,820,482 Total governmental funds capital assets $ 20,067,992 $ 28,950,960 $ 5,142,224 "This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 66 ---PAGE BREAK--- Construction in Infrastructure Progress $ $ 10,700 10,700 17,588,070 17,588,070 $ 17,588,070 $ 10,700 Total $ 49,663,360 55,734 89,242 4,433 6,900 30,048 43,899 3,062 81,740 5,318 142,564 50,126,300 1,150,283 1,150,283 70,996 19,712,506 699,861 20,483,363 $ 71,759,946 67 ---PAGE BREAK--- CITY OF EVANSTON, WYOMING CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS Schedule of Changes by Function and Activity * Year Ended June 30, 2012 Governmental Governmental Funds Capital Funds Capital Assets Assets Function and Activity June 30, 201 I Additions Deductions June 30, 2012 General Government General services $ 48,181,199 $ 1,434,295 $ (37,166) $ 49,652,660 Council 65,226 9,492 55,734 Engineering 89,642 400 89,242 Judicial 4,433 4,433 Economic development 6,900 6,900 Executive 30,925 877 30,048 Treasurer 43,899 43,899 Clerk 3,062 3,062 Youth services 81,740 81,740 Purchasing 5,318 5,318 Community development 145,271 2,707 142,564 Total general government 48,657,615 1,434,295 (23,690) 50, 115,600 Public Safety Police department 1,080,134 194,687 124,538 1,150,283 Total safety 1,080,134 194,687 124,538 1,150,283 Highway, Streets and Recreation Public works 62,117 8,879 70,996 Streets 2,028,714 120,386 24,664 2,124,436 Streets - infrastructure 17,588,070 17,588,070 Parks and recreation 703,813 3,200 7,152 699,861 Total highway, Streets and recreation 20,382,714 132,465 31,816 20,483,363 Construction in progress 555,967 545,267 10,700 Total general fixed assets $ 70,676,430 $ 1,761,447 $ 677,931 $ 71,759,946 * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 68 ---PAGE BREAK--- COMPLIANCE SECTION 69 ---PAGE BREAK--- This page is intentionally left blank ---PAGE BREAK--- 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 Honorable Mayor and Members of the City Council City of Evanston, Wyoming 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 Evanston, Wyoming, as of and for the year ended June 30, 2012, which collectively comprise the City of Evanston's basic financial statements and have issued our report thereon dated November 30, 2012. 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 Evanston is responsible for establishing and maintaining effective internal control over financial reporting. In planning and performing our audit, we considered the City of Evanston, Wyoming's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City of Evanston, Wyoming's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Evanston, Wyoming's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or 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. Our consideration of the internal control over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be a material weakness, as defined above. 70 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Evanston, Wyoming Page 2 Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of Evanston, Wyoming's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. This report is intended solely for the information and use of management, its oversight audit agency and other agencies granting funds to the City of Evanston, Wyoming and is not intended to be and should not be used by anyone other than these specified parties. ~ crliuwadl Porter, Muirhead, Cornia & Howard Certified Public Accountants November 30, 2012 71