HomeMy WebLinkAboutAnnual Report July 01, 2013 - June 30, 2014PAGES
City Officials and Committees 1
City Clerk Vital Statistics & Election Results 5
Board of Civil Authority Report 6
Zoning Administrative Officer's Report 7
Planning and Zoning Department Report 8
Recreation & Park Department Report 11
Police Department Report 13
Fire Department Report 15
Community Library Report 17
Planning Commission Report 20
Natural Resource Committee 21
Engery Committee 22
CCTA Report 23
City of South Burlington Audit Year Ended June 30, 2013 24
TABLE OF CONTENTS
South Burlington Police Department
2014 Annual Report
It brings me great pleasure to provide this annual report for the South Burlington Police
Department. I continue to be humbled to have the honor to work with such a wonderful
group of men and women. Your police department is comprised of sworn police officers,
dispatchers, records clerks, a community justice center and a small group of very
committed community volunteers. During 2014 we welcomed Officers Kenneth Soffen,
Christopher Matott, Patrick Mulcahy and Dispatcher Shannon Yandow to our ranks.
Each of our new members was subjected to a rigorous screening and hiring process which
identified them as having the qualities, values and attributes that would complement our
forwarding thinking community oriented police force. The department has now returned
to the staffing level we were at prior to the 2010 staff reductions.
During the past year we have continued our review of data and calls to identify key issues
in our community. Our Evidence Based Policing efforts will be enhanced this coming
year with the assistance of the Crime Research Group here in Vermont. They will be
working with our staff to review and analyze our data so that more effective decision can
be made concerning our current and future operations.
The department continues to provide a variety of services to residents and visitors. We
maintain patrol teams, school resource officers, traffic safety officers, detectives,
dispatchers, records clerks and our community justice center staff. During 2014 we
added an Offender Reentry coordinator to the community justice center allowing us to
provide Circles of Support and Accountability to select individuals who will be leaving a
correctional center and returning to our community.
We continue our work of addressing problems caused by drug addiction. Community
engagement, drug return opportunities (to include the drop box in the police department
lobby), enforcement, and added access to treatment likely contributed to less criminal
activity. The department will continue to provide the drug drop box and encourage
residents to not provide opportunities for crime by removing valuables from and locking
their vehicles.
Included in this report is a basic listing of police activity. It is noted that in general,
reports of crime are lower in 2014 than they were in 2013. What we did notice was that
there were crimes reported that required much more investigative time. We saw cases
involving prostitution/human trafficking, large scale data breaches involving the theft of
credit card numbers, and theft of electronics. Our department has become a leader in
Vermont when it comes to the identification and investigation of human trafficking.
Statistics 2013 2014
Arrests 723 562
Vehicle Stops 4005 4581
Traffic Tickets 1668 1771
Traffic Warnings 2337 2810
Under age alcohol
possession 92 87
Total calls for police service 15,307 14,834
Criminal Arrests
DUI 100 61
Drug possession 77 36
Heroin possession 18 10
Burglary 114 32
Theft from vehicles 288 171
Shoplifting 322 220
The department appreciates the support of our community. You can continue to help us
and your neighbors by; disposing of unneeded medication, remove valuables from your
car when not occupied, report suspicious behavior and have good neighborhood
communication.
We are fortunate to have some of the finest women and men working in the department.
They are pleased to be serving the citizens of South Burlington and appreciate your
support. I encourage you to take time to offer your feedback, whether it be a
compliment, a suggestion or a concern. You can do this with a phone call to the on-duty
supervisor, completing the form on our website (www.sbpdvt.org), sending a letter or by
contacting me. And, as always, you should never hesitate to contact me directly.
Respectfully submitted,
Trevor S. Whipple
Chief of Police
twhipple@sbpdvt.org
(802) 846-4111
Federal Compliance Audit
City of South Burlington, Vermont
June 30, 2014
Proven Expertise and Integrity
CITY OF SOUTH BURLINGTON, VERMONT
CONTENTS
JUNE 30, 2014
PAGE
INDEPENDENT AUDITORS' REPORT 1 - 3
MANAGEMENT’S DISCUSSION AND ANALYSIS 4 - 11
BASIC FINANCIAL STATEMENTS
GOVERNMENT WIDE FINANCIAL STATEMENTS
STATEMENT A - STATEMENT OF NET POSITION 12
STATEMENT B - STATEMENT OF ACTIVITIES 13 - 14
FUND FINANCIAL STATEMENTS
STATEMENT C - BALANCE SHEET – GOVERNMENTAL FUNDS 15
STATEMENT D - RECONCILIATION OF THE GOVERNMENTAL FUNDS
BALANCE SHEET TO THE STATEMENT OF NET POSITION 16
STATEMENT E - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES – GOVERNMENTAL FUNDS 17
STATEMENT F - RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF
GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 18
STATEMENT G - BALANCE SHEET – PROPRIETARY FUNDS 19 - 20
STATEMENT H - STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
NET POSITION – PROPRIETARY FUNDS 21 - 22
STATEMENT I - STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS 23 - 24
STATEMENT J - STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY
FUNDS 25
STATEMENT K - STATEMENT OF CHANGES IN FIDUCIARY NET POSITION –
FIDUCIARY FUNDS 26
NOTES TO FINANCIAL STATEMENTS 27 - 52
REQUIRED SUPPLEMENTARY INFORMATION
REQUIRED SUPPLEMENTARY INFORMATION DESCRIPTION 53
SCHEDULE 1 - BUDGETARY COMPARISON SCHEDULE – BUDGETARY BASIS –
BUDGET AND ACTUAL – GENERAL FUND 54
SCHEDULE 2 - BUDGETARY COMPARISON SCHEDULE – BUDGETARY BASIS –
BUDGET AND ACTUAL – GENERAL FUND REVENUES 55
SCHEDULE 3 - SCHEDULE OF FUNDING PROGRESS – EMPLOYEES
PENSION PLAN 56
OTHER SUPPLEMENTARY INFORMATION
OTHER SUPPLEMENTARY INFORMATION DESCRIPTION 57
SCHEDULE A - SCHEDULE OF DEPARTMENTAL OPERATIONS 58 - 60
SCHEDULE B - COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL
FUNDS 61
SCHEDULE C - COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES – NONMAJOR GOVERNMENTAL
FUNDS 62
SPECIAL REVENUE FUNDS DESCRIPTION 63
SCHEDULE D - COMBINING BALANCE SHEET – NONMAJOR SPECIAL
REVENUE FUNDS 64 - 70
SCHEDULE E - COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES – NONMAJOR
SPECIAL REVENUE FUNDS 71 - 77
CAPITAL PROJECTS DESCRIPTION 78
SCHEDULE F - COMBINING BALANCE SHEET – NONMAJOR CAPITAL
PROJECT FUNDS 79 - 80
SCHEDULE G - COMBINING SCHEDULE OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES – NONMAJOR CAPITAL
PROJECT FUNDS 81 - 82
PERMANENT FUNDS DESCRIPTION 83
SCHEDULE H - COMBINING BALANCE SHEET – NONMAJOR PERMANENT
FUNDS 84 - 85
SCHEDULE I - COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES – NONMAJOR PERMANENT
FUNDS 86 - 87
GENERAL CAPITAL ASSETS DESCRIPTION 88
SCHEDULE J - SCHEDULE OF GENERAL CAPITAL ASSETS BY FUNCTION 89
SCHEDULE K - SCHEDULE OF CHANGES IN GENERAL CAPITAL ASSETS
BY FUNCTION 90
FEDERAL COMPLIANCE
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 91
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 92
INDEPENDENT AUDITORS' 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 93 - 94
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY OMB CIRCULAR A-133 95 - 96
SCHEDULE OF FINDINGS AND QUESTIONED COSTS 97
1
INDEPENDENT AUDITORS’ REPORT
City Council
City of South Burlington
South Burlington, Vermont
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental
activities, business-type activities, each major fund, and the aggregate remaining fund
information of the City of South Burlington, Vermont as of and for the year ended June 30,
2014, and the related notes to the financial statements, which collectively comprise the
City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these
financial statements in accordance with accounting principle generally accepted in the
United States of America; this includes the design, implementation, and maintenance of
internal control relevant to the preparation and fair presentation of financial statements that
are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility
Our responsibility is to express opinions on these financial statements based on our
audit. We 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. The procedures selected depend on the auditor’s
judgment, including the assessment of the risks of material misstatement of the financial
statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
entity’s internal control. Accordingly, we express not such opinion. An audit also includes
assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation.
Proven Expertise and Integrity
3 Old Orchard Road, Buxton, Maine 04093
Tel: (800) 300-7708 (207) 929-4606 Fax: (207) 929-4609
www.rhrsmith.com
2
We believe that the audit evidence we have obtained is sufficient and appropria te to
provide a basis for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all
material respects, the respective financial position of the governmental activities, business-
type activities, each major fund, and the aggregate remaining fund information of the City
of South Burlington, Vermont as of June 30, 2014, and the respective changes in financial
position and cash flows, where applicable, thereof for the year then ended, in conformity
with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require
that the management’s discussion and analysis on pages 4 through 11 and budgetary
comparison information on page 54 and 55 be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an
essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary in formation in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic
financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not pr ovide us with sufficient evidence to
express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial
statements that collectively comprise the City of South Burlington, Vermont’s basic
financial statements. The combining and individual non -major fund financial statements
are presented for purposes of additional analysis and are not a required part of the basic
financial statements. The accompanying schedule of expenditures of federal awards is
presented for purposes of additional analysis as required by U.S. Office of Management
and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the basic financial statements.
3
The combining and individual non-major fund financial statements and the schedule
of expenditures of federal awards are the responsibility of management and were derived
from and related directly to the underlying accounting and other records used to prepare
the basic financial statements. The information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements and the schedule of
expenditures of federal awards are fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report
dated October 3, 2014, on our consideration of the City of South Burlington Vermont’s
internal control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants 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 read in considering the City of South Burlington’s internal control over financial
reporting and compliance.
Buxton, Maine
Vermont Registration No. 092.0000697
October 3, 2014
4
REQUIRED SUPPLEMENTARY INFORMATION
MANAGEMENT'S DISCUSSION AND ANALYSIS
JUNE 30, 2014
(UNAUDITED)
The following management’s discussion and analysis of the City of South
Burlington, Vermont's financial performance provides an overview of the City's financial
activities for the fiscal year ended June 30, 2014. Please read it in conjunction with the
City's financial statements.
Financial Statement Overview
The City of South Burlington’s basic financial statements include the following
components: 1) government-wide financial statements, 2) fund financial statements, and
3) notes to the financial statements. This report also includes required supplementary
information which consists of the general fund budgetary comparison schedule, and other
supplementary information which includes combining and other schedules.
Basic Financial Statements
The basic financial statements include financial information in two differing views:
the government-wide financial statements and the fund financial statements. These basic
financial statements also include the notes to financial statements that explain in more
detail certain information in the financial statements and also provide the user with the
accounting policies used in the preparation of the financial statements.
Government-Wide Financial Statements
The government-wide financial statements provide a broad view of the City’s
operations in a manner that is similar to private businesses. Thes e statements provide
both short–term as well as long–term information in regards to the City’s financial position.
These financial statements are prepared using the accrual basis of accounting. This
measurement focus takes into account all revenues and expenses associated with the
fiscal year regardless of when cash is received or paid. The government–wide financial
statements include the following two statements:
The Statement of Net Position – this statement presents all of the government’s
assets, deferred outflows of resources, liabilities and deferred inflows of resources
with the difference being reported as net position.
The Statement of Activities – this statement presents information that shows how
the government’s net position changed during the period. All changes in net
position are reported as soon as the underlying event giving rise to the change
occurs, regardless of the timing of the related cash flows.
5
Both of the above mentioned financial statements have separate columns for the
two different types of City activities. The types of activities presented for the City of South
Burlington are:
● Governmental activities – The activities in this section are mostly supported
by taxes and intergovernmental revenues (federal and state grants). Most of
the City's basic services are reported in governmental activities, which
include general government, public safety, public works, education, social
services, recreation and culture and other unclassified.
● Business-type activities – These activities are normally intended to recover
all or a significant portion of their costs through user fees and/or charges to
external users for goods and/or services. These activities for the City of
South Burlington include the recreation program, water department, water
pollution, ambulance services and storm water utilities.
Fund Financial Statements
A fund 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 South
Burlington, like other local governments, uses fund accounting to ensure and demonstrate
compliance with financial related legal requirements. All of the funds of the City of South
Burlington can be divided into three categories: governmental funds, proprietary funds,
and fiduciary funds.
Governmental funds: Most of the basic services provided by the City are financed
through governmental funds. Governmental funds are used to account for essenti ally the
same functions reported in governmental activities in the government–wide financial
statements. However, unlike the government-wide financial statements, the governmental
fund financial statements focus on near-term inflows and outflows of spendable resources.
They also focus on the balance of spendable resources available at the end of the fiscal
year. Such information will be useful in evaluating the government’s near -term financing
requirements. This approach is known as the current financial resources measurement
focus and the modified accrual basis of accounting. Under this approach revenues are
recorded when cash is received or when susceptible to accrual. Expenditures are
recorded when liabilities are incurred and due. These statements provide a detailed short-
term view of the City’s finances to assist in determining whether there will be adequate
financial resources available to meet the current needs of the City.
Because the focus of governmental funds is narrower than that of gover nment-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 compa rison between governmental
funds and governmental activities. These reconciliations are presented on the page
immediately following each governmental fund financial statement.
6
The City of South Burlington presents three columns in the governmental fund
balance sheet and the governmental fund statement of revenues, expenditures and
changes in fund balances. The City’s major governmental funds are the general fund and
airport parkway expansion. All other funds are shown as nonmajor and are combined in
the “Other Governmental Funds” column on these statements.
The general fund is the only fund for which the City legally adopted a budget. The
Budgetary Comparison Schedule – Budgetary Basis – Budget and Actual – General Fund
provides a comparison of the original and final budget and the actual expenditures for the
current year.
Proprietary Funds: The City of South Burlington maintains four proprietary funds:
the recreation programs, water department, water pollution and storm water utilities .
These funds are used to show activities that operate more like those of commercial
enterprises. Proprietary funds provide the same type of information as the government -
wide financial statements, only in more detail. Like the government -wide financial
statements, proprietary fund financial statements use the accrual basis of accounting. No
reconciliation is needed between the government -wide financial statements for business-
type activities and the proprietary fund financial statements.
Fiduciary Funds: These funds are used to account for resources held for the benefit
of parties outside the City of South Burlington. These funds are not reflected in the
government-wide financial statements because the resources of these funds are not
available to support the City’s own programs. The accounting used for fiduciary funds are
much like that of proprietary funds. They use t he accrual basis of accounting. These
funds for the City are for the pension
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 the Fund Financial Statements. The Notes
to Financial Statements can be found following the Fiduciary Fund Financial Statements.
Required Supplementary Information
The basic financial statements are followed by a section of required supplementary
information, which includes a Budgetary Comparison Schedule – Budgetary Basis –
Budget and Actual – General Fund.
Other Supplementary Information
Other supplementary information follows the required supplementary information.
These combining and other schedules provide information in regards to nonmajor funds,
capital asset activity and other detailed budgetary information for the general fund.
7
Government-Wide Financial Analysis
Our analysis below focuses on the net position , and changes in net position of the
City's governmental activities. The City's total net position for governmental funds is
$23.23 million compared to $21.16 million in the prior year, an increase of $2,071,692. For
the business-type activities total net assets are $12.46 million as compared to $10.85
million in the prior year, an increase of $1,609,115.
Unrestricted net position - the part of net position that can be used to finance day-
to-day operations without constraints established by debt covenants, enabling legislation,
or other legal requirements – is $5.26 million at the end of this year for governmental
activities and $4.66 million for the business-type activities.
Governmental Business-type Governmental Business-type
Activities Activities Activities Activities
Assets
Current and Other Assets 10,114,891$ 5,766,190$ 8,464,533$ 4,236,434$
Capital Assets 51,846,981 10,463,543 52,188,431 10,409,370
Total Assets 61,961,872 16,229,733 60,652,964 14,645,804
Liabilities
Current Liabilities 4,692,959 1,458,366 3,433,823 1,132,735
Long-term Debt Outstanding 34,037,180 2,314,456 36,059,100 2,665,273
Total Liabilities 38,730,139 3,772,822 39,492,923 3,798,008
Net Position
Invested in Capital Assets,
Net of Related Debt 16,593,724 7,798,221 14,791,504 7,382,637
Restricted for:Special revenues 597,911 - 255,562 -
Permanent funds 523,341 - 534,418 -
Capital projects 260,689 - 260,689 -
Storm water - - - -
Unrestricted 5,256,068 4,658,690 5,317,868 3,465,159
Total Net Position 23,231,733$ 12,456,911$ 21,160,041$ 10,847,796$
2013
Table 1
City of South Burlington, Vermont
Net Position
June 30,
2014
8
Governmental Business-type Governmental Business-type
Activities Activities Activities Activities
Revenues
Program Revenues:
Charges for services 4,416,082$ 7,580,144$ 3,680,077$ 7,466,975$
Operating grants and contributions - 369,258 - 1,010,872
General Revenues:
Taxes 50,910,111 - 47,364,203 -
Grants and contributions not
restrocted to specific programs 419,563 - 419,027 -
Investment income 53,643 1,538 75,513 1,286
Capital projects funding - - 2,200,000 -
Miscellaneous 163,495 246,795 183,631 282,070
Total Revenues 55,962,894 8,197,735 53,922,451 8,761,203
Expenses
General government 6,391,150 - 3,777,162 -
Public safety 7,556,812 - 9,583,603 -
Public works 2,938,457 - 2,715,492 -
Social services 646,652 - 614,312 -
Recreation and culture 1,229,510 - 1,268,922 -
Program expenditures 601,717 - 2,305,355 -
Capital outlay 37,226 - - -
Interest expense 750,196 - 761,593 -
Unallocated depreciation 20,881 - - -
Education 33,712,101 - 32,145,228 -
Enterprise fund - 6,595,120 - 5,819,592
Total Expenses 53,884,702 6,595,120 53,171,667 5,819,592
Total transfers (6,500) 6,500 739,947 (739,947)
Change in Net Position 2,071,692 1,609,115 1,490,731 2,201,664
Net Position - July 1 21,160,041 10,847,796 19,669,310 8,646,132
Net Position - June 30 23,231,733$ 12,456,911$ 21,160,041$ 10,847,796$
2014 2013
Table 2
City of South Burlington, Vermont
Change in Net Position
For the Years Ended June 30,
9
Revenues and Expenses
Revenues for the City's governmental activities increased by 3.784%, while total
expenses increased by 1.34%. Most of the City’s revenues and expenses were fairly
consistent with the prior year.
The expenses and revenues for the proprietary fund were consistent with the prior
year. The proprietary fund has four enterprise funds with all of them having a positive net
position.
The proprietary funds had a change in net position for the current year of
$1,609,115.
Financial Analysis of the City’s Fund Statements
Governmental funds: The financial reporting focus of the City’s governmental funds
is to provide information on near-term inflows, outflows, and balances of spendable
resources. Such information may be useful in assessing the City’s financial requirements.
In particular, unassigned fund balance may serve as a useful measure of a government’s
financial position at the end of the year, and the net resources available for spending.
10
2014 2013
Major Funds:
General fund:
Nonspendable 514,618$ 465,463$
Committed - 1,086,243
Assigned - 452,382
Unassigned 521,927 89,254
Airport parkway expansion:
Unassigned 2,041,122 2,042,765
Subtotal Major Funds 3,077,667 4,136,107
Non-Major Funds:
Special revenue funds:
Restricted 597,911 255,562
Committed 1,860,350 1,564,883
Assigned 174,834 156,700
Unassigned (322,619) (198,279)
Capital project funds:
Restricted 260,689 260,689
Committed 1,419,012 690,986
Unassigned (87,641) (67,104)
Permanent funds:
Restricted 523,341 534,418
Committed 6,732 6,753
Unassigned (524) (671)
Subtotal Non-Major Funds 4,432,085 3,203,937
Total Governmental Funds 7,509,752$ 7,340,044$
Table 3
City of South Burlington, Vermont
Fund Balances - Governmental Funds
June 30,
The general fund total fund balance decreased by $1,056,797 from the prior fiscal
year. The Airport Parkway Expansion fund total fund balance decreased by $1,643 and
the non-major fund balances increased by $1,228,148 from the prior fiscal year.
Proprietary funds: The City’s proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
Budgetary Highlights
There were no significant differences between the original and final budget for the
general fund.
11
The general fund budgeted revenues exceeded the actual amounts by $414,716.
This was mainly a result of bond proceeds that were budgeted but not receipted.
The general fund actual expenditures were less than the budget by $444,162. All
expenditures were under budget with the exception of public safety, public works and
social services.
Capital Asset and Debt Administration
Capital Assets
As of June 30, 2014, the net book value of capital assets recorded by the City
decreased by $287,277 from the prior fiscal year. This increase was a result of current
year capital additions of $1,486,241 less depreciation expense of $1,773,518. Refer to
Note 4 of Notes to Financial Statements for more detailed information.
2014 2013
Land 6,771,163$ 6,548,263$
Construction in progress 28,787,429 28,571,251
Buildings, building improvements
and land improvements 10,548,839 11,277,848
Machinery, equipment and vehicles 7,175,031 7,533,791
Infrastructure 9,028,062 8,666,648
Total 62,310,524$ 62,597,801$
Table 4
City of South Burlington, Vermont
Capital Assets (Net of Depreciation)
June 30,
Debt
At June 30, 2014, the City had $30.24 million in bonds outstanding versus $32.17
million last year. Other obligations include notes payable and accrued benefit time. Refer
to Note 5 of Notes to Financial Statements for more detailed information.
Contacting the City's Financial Management
This financial report is designed to provide our citizens, taxpayers, customers, and
investors and creditors with a general overview of the City's finances and to show the
City's accountability for the money it receives. If you have questions about this report or
need additional financial information, contact Tom Hubbard, Assistant City Manager at 575
Dorset Street, South Burlington, Vermont 05403-0808. Tom can also be reached by
phone at 802-846-4107 or by email tom@sburl.com.
STATEMENT A
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF NET POSITION
JUNE 30, 2014
12
Governmental Business-type
Activities Activities Total
ASSETS
Current assets:
Cash and cash equivalents 7,531,508$ 3,363,497$ 10,895,005$
Investments 413,041 - 413,041
Taxes receivable (net of allowance for uncollectibles)207,606 - 207,606
Due from water - billed - 699,135 699,135
Due from water - unbilled - 1,157,369 1,157,369
Other receivables 1,378,718 535,475 1,914,193
Due from agencies 75 - 75
Prepaid expenses 482,152 420 482,572
Inventory 32,466 79,619 112,085
Internal balances 69,325 (69,325) -
Total current assets 10,114,891 5,766,190 15,881,081
Noncurrent assets:
Capital assets:
Land and other assets not being depreciated 34,824,414 734,178 35,558,592
Depreciable assets, net of accumulated depreciation 17,022,567 9,729,365 26,751,932
Total noncurrent assets 51,846,981 10,463,543 62,310,524
TOTAL ASSETS 61,961,872$ 16,229,733$ 78,191,605$
LIABILITIES
Current liabilities:
Accounts payable 1,814,489$ 1,056,213$ 2,870,702$
Accrued expenses 608,207 - 608,207
Due to taxpayers 56,648 - 56,648
Due to agencies 5,490 - 5,490
Due to other governments 328 51,287 51,615
Other liabilities 45,161 - 45,161
Post retirement benefits 246,696 - 246,696
Current portion of long-term obligations 1,915,940 350,866 2,266,806
Total current liabilities 4,692,959 1,458,366 6,151,325
Noncurrent liabilities:
Noncurrent portion of long-term obligations:
Bonds payable 26,161,303 2,314,456 28,475,759
Notes payable 7,176,014 - 7,176,014
Accrued compensated absences 699,863 - 699,863
Total noncurrent liabilities 34,037,180 2,314,456 36,351,636
TOTAL LIABILITIES 38,730,139 3,772,822 42,502,961
NET POSITION
Invested in capital assets, net of related debt 16,593,724 7,798,221 24,391,945
Restricted for: Special revenue funds 597,911 - 597,911
Permanent funds 523,341 - 523,341
Capital project funds 260,689 - 260,689
Unrestricted 5,256,068 4,658,690 9,914,758
TOTAL NET POSITION 23,231,733 12,456,911 35,688,644
TOTAL LIABILITIES AND NET POSITION 61,961,872$ 16,229,733$ 78,191,605$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT B
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
13
Operating Capital Business-
Charges for Grants &Grants &Governmental type
Functions/Programs Expenses Services Contributions Contributions Activities Activities Total
Governmental activities:
General government 6,391,150$ 1,574,290$ -$ -$ (4,816,860)$ -$ (4,816,860)$
Public safety 7,556,812 911,003 - - (6,645,809) - (6,645,809)
Public works 2,938,457 1,177,344 - - (1,761,113) - (1,761,113)
Social services 646,652 53,503 - - (593,149) - (593,149)
Recreation and culture 1,229,510 222,410 - - (1,007,100) - (1,007,100)
Education 33,712,101 - - - (33,712,101) - (33,712,101)
Program expenditures 601,717 477,532 - - (124,185) - (124,185)
Capital outlay 37,226 - - - (37,226) - (37,226)
Interest on long-term debt 750,196 - - - (750,196) - (750,196)
Unallocated depreciation 20,881 - - - (20,881) - (20,881)
Total governmental activities 53,884,702 4,416,082 - - (49,468,620) - (49,468,620)
Business-type activities:
Recreation programs 217,165 195,983 - - - (21,182) (21,182)
Water department 2,314,888 2,189,609 - - - (125,279) (125,279)
Water pollution 3,185,723 3,584,180 - - - 398,457 398,457
Storm water utilities 877,344 1,610,372 369,258 - - 1,102,286 1,102,286
Total business-type activities 6,595,120 7,580,144 369,258 - - 1,354,282 1,354,282
Total government 60,479,822$ 11,996,226$ 369,258$ -$ (49,468,620) 1,354,282 (48,114,338)
Program Revenues
Net (Expense) Revenue & Changes
in Net Position
STATEMENT B (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF ACTIVITIES (CONTINUED)
FOR THE YEAR ENDED JUNE 30, 2014
14
Business-
Governmental type
Activities Activities Total
Changes in net position:
Net (expense) revenue (49,468,620) 1,354,282 (48,114,338)
General revenues:
Property taxes, levied for general purposes
Education 34,889,208 - 34,889,208
Municipal 16,020,903 - 16,020,903
Grants and contributions not restricted to
specific programs 419,563 - 419,563
Investment income 53,643 1,538 55,181
Miscellaneous 163,495 246,795 410,290
Transfers (6,500) 6,500 -
Total general revenues and transfers 51,540,312 254,833 16,905,937
Change in net position 2,071,692 1,609,115 3,680,807
NET POSITION - JULY 1 21,160,041 10,847,796 32,007,837
NET POSITION - JUNE 30 23,231,733$ 12,456,911$ 35,688,644$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT C
CITY OF SOUTH BURLINGTON, VERMONT
BALANCE SHEET - GOVERNMENTAL FUNDS
JUNE 30, 2014
15
311
Airport Other Totals
General Parkway Governmental Governmental
Fund Expansion Funds Funds
ASSETS
Cash and cash equivalents 6,072,046$ -$ 1,459,462$ 7,531,508$
Investments - - 413,041 413,041
Accounts receivable (net of allowance for
uncollectibles):
Taxes/liens 207,606 - - 207,606
Other 1,378,718 - - 1,378,718
Due from agencies - - 75 75
Inventory 32,466 - - 32,466
Prepaid items 482,152 - - 482,152
Due from other funds 987,676 2,041,122 3,278,182 6,306,980
TOTAL ASSETS 9,160,664$ 2,041,122$ 5,150,760$ 16,352,546$
LIABILITIES
Accounts payable 1,814,489$ -$ -$ 1,814,489$
Accrued payroll 207,175 - - 207,175
Accrued expenses 401,032 - - 401,032
Due to other funds 5,524,470 - 713,185 6,237,655
Due to taxpayers 56,648 - - 56,648
Due to agencies - - 5,490 5,490
Due to other governments 328 - - 328
Other liabilities 45,161 - - 45,161
TOTAL LIABILITIES 8,049,303 - 718,675 8,767,978
DEFERRED INFLOWS OF RESOURCES
Deferred tax revenues 74,816 - - 74,816
TOTAL DEFERRED INFLOWS OF RESOURCES 74,816 - - 74,816
FUND BALANCES
Nonspendable 514,618 - - 514,618
Restricted - - 1,381,941 1,381,941
Committed - - 3,286,094 3,286,094
Assigned - - 174,834 174,834
Unassigned 521,927 2,041,122 (410,784) 2,152,265
TOTAL FUND BALANCES 1,036,545 2,041,122 4,432,085 7,509,752
TOTAL LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES 9,160,664$ 2,041,122$ 5,150,760$ 16,352,546$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT D
CITY OF SOUTH BURLINGTON, VERMONT
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2014
16
Total
Governmental
Funds
Total Fund Balances 7,509,752$
Amounts reported for governmental activities in the Statement of Net Position are
different because:
Capital assets used in governmental activities are not financial resources and
therefore are not reported in the funds, net of accumulated depreciation 51,846,981
Other long-term assets are not available to pay for current-period expenditures
and therefore are deferred in the funds shown above:
Taxes and liens receivable 74,816
Long-term liabilities are not due and payable in the current period and therefore
are not reported in the funds:
Bonds payable (27,578,618)
Notes payable (7,674,639)
Accrued compensated absences (699,863)
Post retirement benefits (246,696)
Net position of governmental activities 23,231,733$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT E
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
17
311
Airport Other Totals
General Parkway Governmental Governmental
Fund Expansion Funds Funds
REVENUES
General tax revenue - municipal and education 50,916,278$ -$ -$ 50,916,278$
Intergovernmental revenue - - 419,563 419,563
Charges for services 3,938,550 - 477,532 4,416,082
Investment income, net of unrealized
gains/(losses)- - 53,643 53,643
Other revenue - - 163,495 163,495
TOTAL REVENUES 54,854,828 - 1,114,233 55,969,061
EXPENDITURES
Current:
General government 6,494,070 - - 6,494,070
Public safety 7,177,360 - 525 7,177,885
Public works 2,564,506 - - 2,564,506
Social services 643,042 - - 643,042
Recreation and culture 1,167,774 - - 1,167,774
Education 34,889,208 - - 34,889,208
Program expenditures - - 594,875 594,875
Debt service 1,716,759 - - 1,716,759
Capital outlay - 1,643 543,091 544,734
TOTAL EXPENDITURES 54,652,719 1,643 1,138,491 55,792,853
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 202,109 (1,643) (24,258) 176,208
OTHER FINANCING SOURCES (USES)
Operating transfers in 102,726 - 1,423,581 1,526,307
Operating transfers (out)(1,361,632) - (171,175) (1,532,807)
TOTAL OTHER FINANCING SOURCES
(USES)(1,258,906) - 1,252,406 (6,500)
NET CHANGE IN FUND BALANCES (1,056,797) (1,643) 1,228,148 169,708
FUND BALANCES - JULY 1 2,093,342 2,042,765 3,203,937 7,340,044
FUND BALANCES - JUNE 30 1,036,545$ 2,041,122$ 4,432,085$ 7,509,752$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT F
CITY OF SOUTH BURLINGTON, VERMONT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2014
18
Net change in fund balances - total governmental funds (Statement E)169,708$
Amounts reported for governmental activities in the Statement of Activities
(Statement B) are different because:
Governmental funds report capital outlays as expenditures while governmental activities
report depreciation expense allocated to those expenditures over the life of the assets:
Capital asset purchases 507,508
Capital asset deletions -
Depreciation expense (848,958)
(341,450)
Revenues in the Statement of Activities that do not provide current financial
resources are not reported.
Taxes and liens receivable (6,167)
(6,167)
Debt proceeds provide current financial resources to governmental funds, but
long-term liabilities in the Statement of Net Position -
Repayment of long-term debt principal is an expenditure in the governmental
funds, but the repayment reduces long-term liabilities in the Statement of
Net Position.2,143,670
Some expenses 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:
Accrued compensated absences 105,931
Change in net position of governmental activities (Statement B)2,071,692$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT G
CITY OF SOUTH BURLINGTON, VERMONT
BALANCE SHEET – PROPRIETARY FUNDS
JUNE 30, 2014
19
Recreation Water Water Storm Water
Programs Department Pollution Utilities Totals
ASSETS
Current assets:
Cash and cash equivalents -$ 867,810$ 1,328,166$ 1,167,521$ 3,363,497$
Accounts receivable (net of allowance for
uncollectibles)- - 535,475 - 535,475
Due from water - billed - 699,135 - - 699,135
Due from water - unbilled - 359,534 554,240 243,595 1,157,369
Inventory - 79,619 - - 79,619
Prepaid expenses - 420 - - 420
Due from other funds 16,937 - - 188,229 205,166
Total current assets 16,937 2,006,518 2,417,881 1,599,345 6,040,681
Noncurrent assets:
Net capital assets - 3,746,354 3,985,310 2,731,879 10,463,543
Total noncurrent assets - 3,746,354 3,985,310 2,731,879 10,463,543
TOTAL ASSETS 16,937$ 5,752,872$ 6,403,191$ 4,331,224$ 16,504,224$
Enterprise Funds
STATEMENT G (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
BALANCE SHEET – PROPRIETARY FUNDS
JUNE 30, 2014
20
Recreation Water Water Storm Water
Programs Department Pollution Utilities Totals
Enterprise Funds
LIABILITIES AND NET POSITION
Current liabilities:
Accounts payable -$ 924,086$ -$ 132,127$ 1,056,213$
Accrued payroll - - 51,287 - 51,287
Due to other funds - - 274,491 - 274,491
Current portion of long-term debt - 105,866 245,000 - 350,866
Total current liabilities - 1,029,952 570,778 132,127 1,732,857
Noncurrent liabilities:
Bonds payable - 1,089,456 1,225,000 - 2,314,456
Total noncurrent liabilities - 1,089,456 1,225,000 - 2,314,456
TOTAL LIABILITIES - 2,119,408 1,795,778 132,127 4,047,313
NET POSITION
Invested in capital assets, net of
related debt - 2,551,032 2,515,310 2,731,879 7,798,221
Restricted - - - - -
Unrestricted 16,937 1,082,432 2,092,103 1,467,218 4,658,690
TOTAL NET POSITION 16,937 3,633,464 4,607,413 4,199,097 12,456,911
TOTAL LIABILITIES AND NET POSITION 16,937$ 5,752,872$ 6,403,191$ 4,331,224$ 16,504,224$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT H
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION – PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
21
Recreation Water Water Storm Water
Programs Department Pollution Utilities Totals
OPERATING REVENUES
Intergovernmental revenue -$ -$ -$ 369,258$ 369,258$
Water sales - 2,073,068 - - 2,073,068
Charges for services 195,983 116,541 3,584,180 1,610,372 5,507,076
Other - 202,480 42,436 1,879 246,795
TOTAL OPERATING REVENUES 195,983 2,392,089 3,626,616 1,981,509 8,196,197
OPERATING EXPENSES
Salaries and benefits 97,444 394,254 1,091,113 379,670 1,962,481
Professional and contracted services 46,963 158,109 527,975 306,740 1,039,787
Supplies, materials and fuel 3,532 86,227 426,480 21,426 537,665
Water purchases - 1,209,422 - - 1,209,422
Capital outlay - 98,719 - 1,000 99,719
Utilities - - 383,705 3,814 387,519
Depreciation - 196,144 639,569 88,847 924,560
City admin fee - 44,665 - - 44,665
Liability insurance - 6,402 62,090 23,972 92,464
Miscellaneous 69,226 61,513 54,791 51,875 237,405
TOTAL OPERATING EXPENSES 217,165 2,255,455 3,185,723 877,344 6,535,687
OPERATING INCOME (LOSS)(21,182) 136,634 440,893 1,104,165 1,660,510
Enterprise Funds
STATEMENT H (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION – PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
22
Recreation Water Water Storm Water
Programs Department Pollution Utilities Totals
Enterprise Funds
NON-OPERATING INCOME (EXPENSE)
Operating transfers in - - - 6,500 6,500
Operating transfers (out)- - - - -
Interest income - 1,538 - - 1,538
Interest expense - (59,433) - - (59,433)
TOTAL NON-OPERATING INCOME (EXPENSE)- (57,895) - 6,500 (51,395)
CHANGE IN NET POSITION (21,182) 78,739 440,893 1,110,665 1,609,115
NET POSITION - JULY 1 38,119 3,554,725 4,166,520 3,088,432 10,847,796
NET POSITION - JUNE 30 16,937$ 3,633,464$ 4,607,413$ 4,199,097$ 12,456,911$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT I
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
23
Recreation Water Water Storm Water
Programs Department Pollution Utilities Totals
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 217,165$ 2,069,264$ 3,048,705$ 1,506,602$ 6,841,736$
Intergovernmental receipts - - - 369,258 369,258
Other receipts - 202,480 42,436 1,879 246,795
Payments to employees (97,444) (394,254) (1,091,113) (343,376) (1,926,187)
Payments to suppliers (119,721) (1,460,959) (1,664,026) (844,122) (4,088,828)
Net cash provided (used) by operating activities - 416,531 336,002 690,241 1,442,774
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Interfund transfers - - - 6,500 6,500
Net cash provided (used) by noncapital financing activities - - - 6,500 6,500
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITIES
Interest income - 1,538 - - 1,538
(Purchase) sale of fixed assets - (190,991) (91,002) (696,741) (978,734)
Interest payments on bond payable - (59,433) - - (59,433)
Principal payments on bond/note payable - (116,411) (245,000) - (361,411)
Net cash provided (used) by capital and related financing activities - (365,297) (336,002) (696,741) (1,398,040)
.
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - 51,234 - - 51,234
CASH AND CASH EQUIVALENTS - JULY 1 - 816,576 1,328,166 1,167,521 3,312,263
CASH AND CASH EQUIVALENTS - JUNE 30 -$ 867,810$ 1,328,166$ 1,167,521$ 3,363,497$
Enterprise Funds
STATEMENT I (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
24
Recreation Water Water Storm Water
Programs Department Pollution Utilities Totals
Enterprise Funds
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES:
Operating income (loss) (21,182)$ 136,634$ 440,893$ 1,104,165$ 1,660,510$
Adjustments to reconcile operating income to net
cash provided (used) by operating activities:
Depreciation expense - 196,144 639,569 88,847 924,560
Changes in operating assets and liabilities:
(Increase) decrease in due from water - billed - (105,048) - 84,459 (20,589)
(Increase) decrease in due from water - unbilled - (3,134) - - (3,134)
(Increase) decrease in accounts receivable - - (535,475) - (535,475)
(Increase) decrease in inventory - (13,791) - - (13,791)
(Increase) decrease in prepaid expenses - 1,628 - - 1,628
(Increase) decrease in due from other funds 21,182 - - (188,229) (167,047)
(Decrease) increase in accounts payable - 204,098 - 95,834 299,932
(Decrease) increase in accrued payroll - - - 36,294 36,294
(Decrease) increase in due to other funds - - (208,985) (531,129) (740,114)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES -$ 416,531$ 336,002$ 690,241$ 1,442,774$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT K
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF FIDUCIARY NET POSITION – FIDUCIARY FUNDS
JUNE 30, 2014
25
Employee
Pension Agency Funds
Trust ICMA
ASSETS
Investments, at fair value:
Money market funds 20,046$ -$
Bond funds 2,506,141 -
Asset allocation funds 1,426,020 6,988,703
U.S. Stocks 10,558,530 -
International Stocks 5,092,535 -
Specialty 3,066,994 -
Fixed income 5,558,228 -
Real estate -
TOTAL ASSETS 28,228,494$ 6,988,703$
LIABILITIES
Amounts held for others -$ 6,988,703$
TOTAL LIABILITIES - 6,988,703$
NET POSITION
Restricted - held in trust for pension benefits 28,228,494
TOTAL NET POSITION 28,228,494
TOTAL LIABILITIES AND NET POSITION 28,228,494$
See accompanying independent auditors' report and notes to financial statements.
STATEMENT K
CITY OF SOUTH BURLINGTON, VERMONT
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION – FIDUCIARY FUNDS
JUNE 30, 2014
26
Employee
Pension
Trust
ADDITIONS
Contributions:
Employer/Employee -$
Total contributions -
Investment earnings:
Net increase (decrease) in fair value of investments 3,037,364
Interest and dividends -
Total investment earnings, net 3,037,364
Total additions 3,037,364
DEDUCTIONS
Benefits payments -
Other withdrawals -
Administrative expenses -
Total deductions -
CHANGE IN NET POSITION 3,037,364
NET POSITION - JULY 1 25,191,130
NET POSITION - JUNE 30 28,228,494$
See accompanying independent auditors' report and notes to financial statements.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
27
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of South Burlington was incorporated under the laws of the State of
Vermont. The City operates under City Council-Manager form of government and provides
the following services: general government services, public safety, public works, health
and welfare, education, and recreation.
The City’s financial statements are prepared in accordance with generally accepted
accounting principles (GAAP). The Governmental Accounting Standards Board (GASB) is
responsible for establishing GAAP for state and local governments through its
pronouncements (Statements and Interpretations).
The City’s combined financial statements include all accounts and all operations of
the City. We have determined that the City has no component units as described in GASB
Statement No. 14 and amended by GASB Statement No. 39.
Government–Wide and Fund Financial Statements
The City’s basic financial statements include both government-wide (reporting the
City as a whole) and fund financial statements (reporting the City’s major funds).
Both the government-wide and fund financial statements categorize primary
activities as either governmental or business-type. The City’s recreation program, water
department, water pollution, ambulance services; and storm water utilities are categorized
as business-type activities. All other activities of the City are categorized as governmental.
In the government-wide Statement of Net Position, both the governmental and
business-type activities columns are (a) presented on a consolidated basis by column, and
(b) are reported on a full accrual, economic resources basis, which recognizes all long -
term assets and receivables as well as long-term debt and obligations. The City's net
position are reported in three parts - invested in capital assets, net of related debt;
restricted net position; and unrestricted net position. The City first utilizes restricted
resources to finance qualifying activities.
The government-wide Statement of Activities reports both the gross and net cost of
each of the City's functions and business-type activities (general government, public
safety, etc.). The functions are also supported by general government revenues (property
taxes, certain intergovernmental revenues, miscellaneous revenues, etc.). The Statement
of Activities reduces gross expenses (including depreciation) by related program revenues,
operating and capital grants. Program revenues must be directly associated with the
function or a business-type activity. Operating grants include operating-specific and
discretionary (either operating or capital) grants while the capital grants column reflects
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
28
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
capital-specific grants. For the most part, the interfund activity has been eliminated from
these government–wide financial statements.
The net costs (by function) are normally covered by general revenue (taxes, certain
intergovernmental revenues and charges for services, etc.).
The City does not allocate indirect costs. All costs are charged d irectly to the
corresponding department.
The government-wide focus is more on the sustainability of the City as an entity and
the change in the City’s net position resulting from the current year’s activities.
Measurement Focus - Basic Financial Statements & Fund Financial Statements
The financial transactions of the City are reported in the individual funds in the fund
financial statements. Each fund is accounted for by providing a separate set of self -
balancing accounts that comprise its assets, liabilities, fund balances, revenues and
expenditures/expenses. The various funds are reported by generic classification within the
financial statements.
The following fund types are used by the City:
1. Governmental Funds:
The focus of the governmental funds' measurement (in the fund statements) is upon
determination of financial position (sources, uses, and balances of financial resources)
rather than upon net income. The following is a description of the governmental funds of
the City:
a. The General Fund is the general operating fund of the City. It is used to
account for all financial resources except those required to be accounted for
in another fund.
b. Special Revenue Funds are used to account for the proceeds of specific
revenue sources that are legally restricted to expenditures for specified
purposes.
c. Capital Project Funds are used to account for financial resources to be used
for the acquisition or construction of major capital facilities or equipment.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
29
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
d. Permanent Funds are used to account for assets held by the City in trust for
specific purposes.
2. Proprietary Funds
The focus of proprietary fund measurement is upon determination of operating
income, changes in net position, financial position, and cash flows. The generally accepted
accounting principles applicable are those similar to businesses in the private sector.
Operating revenues include charges for services, intergovernmental reimbursements and
other miscellaneous fees which are a direct result of the proprietary activity. Non -operating
revenues are any revenues which are generated outside of the general proprietary activity,
i.e. interest income. The following is a description of the proprietary funds of the City:
a. Enterprise Funds are required to be used to account for operations for which
a fee is charged to external users for goods or services and the activity (a) is
financed with debt that is solely secured by a pledge of net revenues, (b) has
third-party requirements that the cost of providing. services, including capital
costs, be recovered with fees and charges or (c) established fees and
charges based on a pricing policy designed to recover similar costs.
3. Fiduciary Funds:
Fiduciary funds are used to report assets held in a trustee or agency capacity for
others and therefore are not available to support City programs. The reporting focus is on
net position and changes in net position and are reported using accounting principles
similar to proprietary funds. Component units that are fiduciary in nature have been
excluded from these financial statements.
The City’s fiduciary funds are presented in the fiduciary fund financial statements by
type (agency and pension trust). Since by definition these assets are being held for the
benefit of a third-party (other local governments, private parties, etc.) and cannot be used
to address activities or obligations of the government, these funds are not incorporated into
the government-wide financial statements.
The emphasis in fund financial statements is on the major funds in either the
governmental or business-type activities categories. Non-major funds by category are
summarized into a single column, GASB Statement No. 34 sets forth minimum criteria
(percentage of the assets, liabilities, revenues, or expenses of either the fund category or
the governmental and enterprise combined) for the determination of major funds. The
nonmajor funds are combined in a column in the fund financial statements.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
30
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Basis of Accounting
Basis of accounting refers to when revenues and expenditures or expenses are
recognized in the accounts and reported in the financial statements. Basis of accounting
relates to the timing of the measurements made, regardless of the measurement focus
applied.
1. Accrual
Governmental activities in the government-wide financial statements and fiduciary
fund financial statements are presented on the accrual basis of accounting. Revenues are
recognized when earned and expenses are recognized when incurred.
2. Modified Accrual
The governmental fund financial statements are presented on the modified accrual
basis of accounting. Under the modified accrual basis of accounting, revenues are
recorded when susceptible to accrual; i.e., both measurable and available. "Available"
means collectible within the current period or soon enough thereafter to be used to pay
liabilities of the current period. Expenditures are generally recognized under the modified
accrual basis of accounting when the related liability is incurred. The exception to this
general rule is that principal and interest on general obligation long -term debt, if any, is
recognized when due.
Budget
The City’s policy is to adopt an annual budget for operations. The budget is
presented on the modified accrual basis of accounting which is consistent with generally
accepted accounting principles.
The following procedures are followed in establishing budgetary data reflected in
the financial statements:
1. Early in the second half of the year the City prepares a budget for the fiscal year
beginning July 1. The operating budget includes proposed expenditures and the
means of financing them.
2. A meeting of the City Council was called for the purpose of adopting the proposed
budget after public notice of the meeting was given.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
31
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
3. The budget was adopted subsequent to passage by the voters.
4. The City did not adopt budgets for Special Revenue Funds.
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.
It is the City’s policy to value investments at fair value. None of the City’s
investments are reported at amortized cost. For purposes of the statement of cash flows,
all highly liquid investments with a maturity of three months or less when purchased are
considered to be a cash equivalent. The City Treasurer is authorized by State Statutes to
invest all excess funds in the following:
- Obligations of the U.S. Government, its agencies and instrumentalities.
- Certificates of deposits and other evidences of deposits at banks, savings and
loan associations, and credit unions.
- Repurchase agreements
- Money market mutual funds
Inventories
Inventories consist of expendable supplies held for consumption and are valued at
cost. Under the consumption method, the costs of inventory items are recognized as
expenditures when used. In the general fund, inventory consists of diesel fuel and
gasoline. The enterprise fund inventory consists of water department supplies on hand at
the end of the year. The cost value is determined using the first-in, first-out (FIFO) method.
Interfund Receivables and Payables
Any residual balances outstanding between governmental activities and business -
type activities are reported in the governmental-wide financial statements as “internal
balances”. Interfund balances and transactions have been eliminated in the government -
wide financial statements.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
32
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Transactions Between Funds
Legally authorized transfers are treated as interfund transfers and are included in
the results of operations of both Governmental and Proprietary Funds.
Allowance for Uncollectible Accounts
The allowance for uncollectible accounts is estimated to be $244,166 as of June 30,
2014. The allowance is for ambulance receivables in the enterprise funds.
Capital Assets
Capital assets purchased or acquired with an original cost of $5,000 or more are
reported at historical cost or estimated historical cost. Contributed assets are reported at
fair market value as of the date received. Additions, improvements and other capital
outlays that significantly extend the useful life of an asset are capitalized. Infrastructure
such as streets, traffic signals, and signs are capitalized. Other costs incurred for repairs
and maintenance are expensed as incurred. Depreciation on all assets is provided on the
straight-line basis over the estimated useful lives.
The assets are valued at historical cost when available and estimated historical
cost where actual invoices or budgetary data was unavailable. Donated fixed assets are
valued at their estimated fair market value on the date received. All retirements have been
recorded by eliminating the net carrying values.
Infrastructure assets include roads, bridges, underground pipe (other than related to
independently owned utilities), traffic signals, etc. These infrastructure assets are likely to
be the largest asset class of the City.
Estimated useful lives are as follows:
Buildings 20 - 50 years
Infrastructure 50 - 100 years
Machinery and equipment 3 - 50 years
Vehicles 3 - 25 years
Long-term Obligations
The accounting treatment of long-term debt depends on whether the assets are
used in governmental fund operations or proprietary fund operations and whether they are
reported in the government-wide or fund financial statements.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
33
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
All long-term debt to be repaid from governmental and business-type resources is
reported as liabilities in government-wide statements. The long-term debt consists
primarily of notes or bonds payable and compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund
financial statements. The debt proceeds are reported as other financing sources and
payment of principal and interest reported as expenditures. The accounting for proprietary
fund is the same in the fund statements as it is in the government-wide statements.
Compensated Absences
The City’s policies regarding vacation and sick time do permit employees to
accumulate earned but unused vacation and sick leave. The liability for these
compensated absences is recorded as long-term debt in the government-wide financial
statements. In the fund financial statements, governmental funds report only the
compensated absence liability payable from expendable available financial resources,
while the proprietary funds report the liability as it is incurred. As of June 30, 2014, the
City’s liability for compensated absences is $805,794.
Net Position
Net position represents the difference between all other elements in a statement of
financial position. Net position invested in capital assets, net of related debt consists of
capital assets, net of accumulated depreciation, reduced by the outstanding balances of
any borrowing used for those assets, and adding back unspent proceeds. Net position is
reported as restricted when there are limitati ons imposed on its use either through
enabling legislations adopted by the City or through external restrictions imposed by
creditors, grantors or laws or regulations of other governments. Unrestricted net position is
the net amount of the assets, deferre d outflows of resources, liabilities, and deferred
inflows of resources that are not included in the determination of net investment in capital
assets or restricted net position.
Fund Balance
In the fund financial statements, fund balance for government al funds is reported in
classifications that comprise a hierarchy based primarily on the extent to which the City is
bound to honor constraints on the specific purpose for which amounts in the funds can be
spent. Fund balance is reported in five component s – nonspendable, restricted,
committed, assigned and unassigned.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
34
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Nonspendable – This includes amounts that cannot be spent either because they
are not in spendable form or because they are legally or contractually required to be
maintained intact.
Restricted – This includes amounts that can be spent only for specific purposes
because of constitutional provisions or enabling legislation or because of constraints that
are externally imposed by creditors, grantors, contributors, or the laws or regulations of
other governments.
Committed – This includes amounts that can be used only for specific purposes
determined by a formal action of the inhabitants of the City. The inhabitants of the City
through City meetings are the highest level of decision-making authority of the City.
Commitments may be established, modified, or rescinded only through a City meeting
vote.
Assigned – This includes amounts that do not meet the criteria to be classifie d as
restricted or committed but that are intended to be used for specific purposes. The
authority for assigning fund balance is expressed by the City Council.
Unassigned – This includes all other spendable amounts. The general fund is the
only fund that reports a positive unassigned fund balance amount. Other governmental
funds besides the general fund can only report a negative unassigned fund balance
amount.
When an expenditure is incurred for purposes for which both restricted and
unrestricted fund balances are available, the City considers restricted funds to have been
spent first. When an expenditure is incurred for which committed, assigned, or unassigned
fund balances are available, the City considers amounts to have been spent first out of
committed funds, then assigned funds, and finally unassigned funds, as needed, unless
the City meeting vote has provided otherwise in its commitment or assignment actions.
Revenue Recognition - Property Taxes - Modified Accrual Basis
The City's property tax for the current year was levied July 2, 201 3 on the assessed
value listed as of April 1, 2013, for all real and personal property located in the City. Taxes
were due on August 15, 2013, October 35, 2013 and March 15, 2014. Interest on unpaid
taxes commenced on August 16, 2013, October 36, 2013 and March 16, 2014, at 8%
penalties and 1% interest per installment.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
35
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property tax revenues are recognized when they b ecome available. Available
includes those property tax receivables expected to be collected within sixty days after
year end. The remaining receivables have been recorded as deferred revenues.
Tax liens are placed on real property within twelve months f ollowing the tax
commitment date if taxes are delinquent. The City has the authority to foreclose on
property eighteen months after the filing of the lien if tax liens and associated costs remain
unpaid.
Program Revenues
Program revenues include all directly related income items applicable to a particular
program (grant income/expenses).
Operating/Non-operating Proprietary Fund Revenues
Operating revenues consist mainly of direct revenue sources and/or charges for
services applicable to that fund.
Encumbrance Accounting
Encumbrances are not liabilities and, therefore, are not recorded as expenditures
until receipt of material or service. For budgetary purposes, appropriations lapse at fiscal
year-end. The City does not utilize encumbrance accountin g for its general fund.
Use of Estimates
During the preparation of the City’s financial statements, management is required to
make estimates and assumptions that affect the reported amounts of assets, liabilities, and
disclosure of contingent items as of the date of the financial statements and the reported
amounts of revenues and expenses/expenditures during the reporting period. Actual
results may differ from these estimates.
NOTE 2 - CASH AND INVESTMENTS
The City’s policies, which follow state statutes, authorize the City to invest in
obligations of the U.S. Treasury, agencies and instrumentalities, other states and Canada,
provided such securities are rated within the three highest grades by an approved rating
service of the State of Vermont, corporate stocks and bonds within statutory limits,
financial institutions, mutual funds and repurchase agreements. These investment policies
apply to all City funds.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
36
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
Deposits:
Custodial credit risk for deposits is the risk that, in the event of a failure of a
depository financial institution, the City will not be able to recover its deposits. The City
does not have a policy covering custodial credit risk for deposits. However, the City
maintains deposits in qualifying financial institutions that are a member of the FDIC or
NCUSIF. At June 30, 2014, the City’s cash balance of $10,895,005 was comprised of
bank deposits and cash equivalents totaling $10,266,894. Bank deposits of $10,266,894
were comprised of $250,000 which was insured by federal depository insurance and
consequently was not exposed to custodial credit risk and $10,016,894 that was in excess
of federal depository insurance, but collateralized with securities held by financial
institutions in the City’s name.
Bank
Account Type Balance
Checking accounts 5,030,183$
Sweep accounts 5,236,711
Money market accounts 481,275
10,266,894$
Investments:
Custodial credit risk for investments is that, in the event of failure of the
counterparty, the City will not be able to recover the value of its investments or collateral
securities that are in possession of an outside party. Currently, the City does not have a
policy for custodial credit risk for investments; however, the City seeks to minimize
custodial credit risk by doing business with authorized institutions, depositories and
broker/dealers. The City’s investments were covered up to $937,435 by Securities
Investor Protection Corporation (SIPC). The remaining investments of $34,692,803 were
uncollateralized and uninsured.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
37
NOTE 2 - CASH AND INVESTMENTS (CONTINUED)
At June 30, 2014, the Town had the following investments and maturities:
Fair
Investment Type Value N/A <1 Year 2 - 5 Years
Prudential:
U.S. Stocks 10,558,530$ 10,558,530$ -$ -$
International Stocks 5,092,535 5,092,535 - -
Fixed income 5,558,228 5,558,228 - -
Asset allocation funds 1,446,066 1,446,066 - -
Bond funds 2,506,141 2,506,141 - -
Specialty 3,066,994 3,066,994 - -
ICMA:
Money market funds 6,988,703 6,988,703 - -
Bond funds - - -
Asset allocation funds - - -
U.S. Stocks - - -
International Stocks - - -
Specialty -
Edward Jones:
Mutual funds 3,105 3,105 - -
Wells Fargo:
Asset backed securities 409,936 409,936 - -
Mutual funds - - -
Fixed rate cap securities - - -
35,630,238$ 35,630,238$ -$ -$
Credit risk – Statutes for the State of Vermont authorize the City to invest in
obligations of the U.S. Treasury, agencies and instrumentalities, other states and Canada,
provided such securities are rated within the three highest grades by an approved rating
service of the State of Vermont, corporate stocks and bonds within statutory limits,
financial institutions, mutual funds and repurchase agreements. The City does not have
an investment policy on credit risk.
Interest rate risk – is the risk that changes in interest rates will adversely affect the
fair value of an investment. The City does not have a formal investment policy that limits
investment maturities as a means of managing its exposure to fair value losses arising
from fluctuations in interest rates.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
38
NOTE 3 - INTERFUND RECEIVABLES AND PAYABLES
Interfund balances at June 30, 2014 consisted of the following individual fund
receivables and payables.
Receivables Payables
(Due from)(Due to)
General fund 987,676$ 5,524,470$
Airport parkway expansion fund 2,041,122 -
Special revenue fund 1,497,090 624,787
Capital project fund 1,679,701 87,641
Permanent fund 101,391 757
Enterprise fund 205,166 274,491
6,512,146$ 6,512,146$
NOTE 4 - CAPITAL ASSETS
The following is a summary of changes in capital assets at June 30, 2014:
Balance,Transfers/Balance,
7/1/13 Additions Disposals 6/30/14
Governmental activities
Non-depreciated assets:
Land 6,030,263$ 222,900$ -$ 6,253,163$
Construction in progress 28,571,251 - - 28,571,251
34,601,514 222,900 - 34,824,414
Depreciated assets:
Land Improvements 71,703 - - 71,703
Buildings 16,206,462 - - 16,206,462
Building improvements 967,313 - - 967,313
Machinery & equipment 2,251,932 - - 2,251,932
Vehicles 4,766,202 229,621 185,169 5,180,992
Infrastructure 39,127,381 54,987 - 39,182,368
63,390,993 284,608 185,169 63,860,770
Less: accumulated depreciation (45,804,076) (848,958) (185,169) (46,838,203)
17,586,917 (564,350) - 17,022,567
Net capital assets 52,188,431$ (341,450)$ -$ 51,846,981$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
39
NOTE 4 - CAPITAL ASSETS (CONTINUED)
Balance,Balance,
7/1/13 Additions Disposals 6/30/14
Business-type activities
Non-depreciated assets:
Land 518,000$ -$ -$ 518,000$
Construction in progress 46,011 170,167 - 216,178
564,011 170,167 - 734,178
Depreciated assets:
Buildings 5,952,242 - - 5,952,242
Building improvements 11,130 - - 11,130
Land improvements 7,362,506 - - 7,362,506
Vehicles 760,165 26,872 (185,169) 601,868
Machinery & equipment 7,044,228 84,956 - 7,129,184
Infrastructure 86,526 696,738 - 783,264
Storm water utilities 2,616,687 - - 2,616,687
23,833,484 808,566 (185,169) 24,456,881
Less: accumulated depreciation (13,988,125) (924,560) 185,169 (14,727,516)
9,845,359 (115,994) - 9,729,365
Net capital assets 10,409,370$ 54,173$ -$ 10,463,543$
Current year depreciation
Fire 121,863$
Ambulance 6,842
Public works 285,888
General government 3,011
Health 3,610
Police 257,064
Recreation 61,398
Highway 88,063
Library 338
City-wide 20,881
Subtotal governmental 848,958
Water department 196,144
Water pollution control 639,569
Storm water utilities 88,847
Subtotal business-type 924,560
Total depreciation expense 1,773,518$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
40
NOTE 5 - LONG TERM DEBT
The following is a summary of changes in the long-term debt for the year ended
June 30, 2014:
Due
Balance,Balance,Within
7/1/13 Additions Deletions 6/30/14 One Year
Governmental Activities:
Bonds payable 29,138,267$ -$ (1,559,649)$ 27,578,618$ 1,417,315$
Notes payable 8,258,660 - (584,021) 7,674,639 498,625
Accrued benefit time 805,794 - (105,931) 699,863 -
Total Governmental Activities 38,202,721$ -$ (2,249,601)$ 35,953,120$ 1,915,940$
Business-type Activities:
Bonds payable 3,026,733$ -$ (361,411)$ 2,665,322$ 350,866$
Total Business-type Activities 3,026,733$ -$ (361,411)$ 2,665,322$ 350,866$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
41
NOTE 5 - LONG TERM DEBT (CONTINUED)
The following is a summary of outstanding bonds payable:
Governmental
Activities
Business-type
Activities
Bonds
$2,435,000,2000 General Obligation Bond due in annual principal
installments and semiannual interest installments through
December 2020.Interest is charged at a net rate of 5.23%per
annum. Annual principal installments are $120,000.689,867$ 150,133$
$4,900,000,1998 General Obligation Bond due in annual principal
installments and semiannual interest installments through April
2020.Interest is not charged.Annual principal installments are
$245,000.- 1,470,000
$3,400,000,2004 General Obligation Bond due in annual principal
installments and semiannual interest installments through
December 2024.Interest is charged at a net rate of 4.455%per
annum. Annual principal installments are $170,000.824,811 1,045,189
$7,200,000,2010 General Obligation Bond due in annual principal
installments and semiannual interest installments through
December 2030.Interest is charged at a rate of 4.34%per annum.
Annual principal installments are $360,000.6,120,000 -
$2,000,000,2010 General Obligation Bond due in annual principal
installments and semiannual interest installments through
December 2022.Interest is charged at a net rate from 3.25%to
4.75% per annum. $1,000,000 was paid by ARRA funding.958,843 -
$19,800,000,2010 General Obligation Bond due in annual principal
installments and semiannual interest installments through April
2030.Interest is charged at 1.00%per annum.Annual principal
installments vary.18,985,097 -
27,578,618$ 2,665,322$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
42
NOTE 5 – LONG TERM DEBT (CONTINUED)
The following is a summary of outstanding notes payable:
Notes
Governmental
Activities
Business-type
Activities
$440,250 Note payable to Merchants Bank for a fire
apparatus/ladder truck with interest at 1.58%.Note matures on
July 15, 2015 with annual principal installments of $146,750 .146,750$ -$
$104,000,General Obligation Note from the Pollution Control
Revolving Loan Fund due in annual principal installments with
interest being forgiven. $52,000 was paid by ARRA funding.21,420 -
$90,310,General Obligation Note from the Pollution Control
Revolving Loan Fund due in annual principal installments with
interest being forgiven. $45,155 was paid by ARRA funding.18,600 -
$74,000,General Obligation Note from the Pollution Control
Revolving Loan Fund due in annual principal installments with
interest being forgiven. $37,000 was paid by ARRA funding.22,638 -
$213,316,General Obligation Note from the Pollution Control
Revolving Loan Fund due in annual principal installments with
interest being forgiven. $106,658 was paid by ARRA funding.43,934 -
$198,281,General Obligation Note from the Pollution Control
Revolving Loan Fund due in annual principal installments with
interest being forgiven. $99,140 was paid by ARRA funding.40,838 -
$8,168,158 Note payable to Merchants Bank for Pension
Financing with interest at 5.125%.Note matures on June 30,2031
with annual installments of $660,948.7,380,459 -
7,674,639$ -$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
43
NOTE 5 - LONG TERM DEBT (CONTINUED)
The following is a summary of outstanding bond principal and interest requirements
for the following fiscal years ending June 30:
Bonds Payable
Total
Principal Interest Debt Service
2015 1,768,181$ 775,213$ 2,543,394$
2016 1,785,645 734,549 2,520,194
2017 1,803,457 691,833 2,495,290
2018 1,821,627 647,249 2,468,876
2019 1,840,159 601,279 2,441,438
2020-2024 8,152,019 2,306,667 10,458,686
2025-2029 7,509,194 1,222,943 8,732,137
2030-2034 5,563,658 280,814 5,844,472
30,243,940$ 7,260,547$ 37,504,487$
The following is a summary of outstanding note principal and interest requirements
for the following fiscal years ending June 30:
Notes Payable
Total
Principal Interest Debt Service
2015 498,625$ 383,516$ 882,141$
2016 366,750 366,322 733,072
2017 320,064 348,734 668,798
2018 328,377 332,571 660,948
2019 345,206 315,742 660,948
2020-2024 2,008,657 4,296,083 6,304,740
2025-2029 2,580,159 724,582 3,304,741
2030-2034 1,226,801 95,096 1,321,897
7,674,639$ 6,862,646$ 14,537,285$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
44
NOTE 6 - NONSPENDABLE FUND BALANCES
At June 30, 2014, the City had the following nonspendable fund balance:
General fund:
Inventory 32,466$
Prepaid expenses 482,152
514,618$
NOTE 7 - RESTRICTED FUND BALANCES
At June 30, 2014, the City had the following restricted fund balances:
Nonmajor special revenue funds (Schedule D)597,911$
Nonmajor capital project funds (Schedule F)260,689
Nonmajor permanent funds (Schedule H)523,341
1,381,941$
NOTE 8 - COMMITTED FUND BALANCES
At June 30, 2014, the City had the following committed fund balan ces:
Nonmajor special revenue funds (Schedule D)1,860,350$
Nonmajor capital project funds (Schedule F)1,419,012
Nonmajor permanent funds (Schedule H)6,732
3,286,094$
NOTE 9 - ASSIGNED FUND BALANCES
At June 30, 2014, the City had the following assigned fund b alances:
Nonmajor special revenue funds (Schedule D)174,834$
174,834$
NOTE 10 - RISK MANAGEMENT – PARTICIPATION IN A PUBLIC ENTITY RISK POOL
The City is exposed to various risks of loss related to torts; theft of, damage to and
destruction of assets; errors and omissions; and natural disasters for which the City carries
commercial insurance or participates in a public entity and self -insured risk pool sponsored
by the Vermont League of Cities and Towns.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
45
NOTE 10 - RISK MANAGEMENT – PARTICIPATION IN A PUBLIC ENTITY RISK POOL
(CONTINUED)
Based on the coverage provided by the insurance purchased, the City is not aware
of any material actual or potential clai m liabilities which should be recorded as of June 30,
2014. There were no significant reductions in insurance coverage from that of the prior
year and amounts of settlements have not exceeded insurance coverage in the past three
years.
The City of South Burlington, Vermont is a member of Vermont League of Cities
and Towns (VLCT). The VLCT has est ablished three insurance trusts: the Property and
Casualty Intermunicipal Fund, Inc. (PACIF) for multi-line insurance; The Vermont League
of Cities and Towns Health Trust (VLCTHT) for health, life and disability coverage; and the
Vermont league of Cities and Towns Unemployment Trust, Inc. (VLCTUT) for
unemployment compensation. PACIF, VLCTHT and VLCTUT are nonprofit corporations
formed to provide insurance and risk management programs for Vermont cities and towns
and is owned by the participating members. The Trusts are not licensed insurance carriers
and members are not protected by the Vermont Insurance Guaranty Association.
To provide insurance coverage, PACIF has established a self-funded insurance
trust. It provides extensive coverage for losses to member municipalities for property
damage, auto accidents, injured employees, public official liability and employment
practices liability. Members gain additional benefits from PACIF’s unique public safety and
risk management programs as well as dedicated in-house claims adjusters. In the event
that total contributions assessed to and made by all members result in a n actual or
projected financial deficit and PACIF is unable to meet its required obligations, the
program will be terminated with each member assessed their proportionate share of the
deficit.
To provide health insurance coverage, VLCTHT has established a self -funded fully
insured program in conjunction with Connecticut General (CIGNA). A portion of member
contributions is used to purchase reinsurance and to fund a reserve required by the
reinsurance. Other health related benefits available include dental insurance, flexible
spending accounts, life insurance, disability insurance and long-term care insurance.
Contributions in excess of claims requirements, reserve fund requirements, reinsurance
and administrative costs are returned to participants. The pooling agreement does not
permit the pool to make additional assessments to its members.
To provide unemployment coverage, VLCTUT has established a separate trust of
funds from member contributions to pay administrative costs, unemployment claims and
provide excess reinsurance protection. Contributions are based on payroll expense and
the previous two year unemployment compensation experience. In the event that total
contributions assessed to and made by all members result in an actual or projected
financial deficit and VLCTUT is unable to meet its required obligations, the program will be
terminated with each members assessed their proportionate share of the deficit.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
46
NOTE 11 - RETIREMENT INCENTIVES
The City will permit any employee with 15 years or more of service to exchange 160
hours of sick leave plus 16 additional sick leave hours per year of service beyond 15 years
towards early retirement in the year of retirement.
Life insurance is offered to all retirees for the rest of their lives. The present cost is
different for each person. There are 38 people presently receiving life insurance benefits
with an annual cost to the city of $10,010. The liability will change from year to year based
on the cost of the insurance and the number of people receiving the insurance benefit.
The City offers a plan, available to all full time employees, that uses accumulated
unused sick time to pay for the loss of health insurance upon their retirement. The amount
of unused sick time hours multiplied by the employee’s hourly rate at the time of retirem ent
is the amount credited to a sick leave bank to pay the cost of insurance. The amount is
actually unfunded and treated as a “pay as you go” plan. As of June 30, 2014, this amount
for both active and retired employees has been estimated at $3,184,354.
NOTE 12 - DEFINED BENEFIT PENSION PLAN
The City of South Burlington, Vermont, sponsors one defined benefit pension plan
with two components that cover all eligible employees. One component is for public safety
employees (fire and police) and the other component is for all other City employees. The
City of South Burlington, Vermont, provides the authority under which benefit provisions
are established and the City’s obligation to contribute is established. The plan calls for
benefits to be paid to eligible employees at retirement based primarily upon years of
service with the City and compensation rates near retirement. The City’s most recent
actuarial valuation of the plan can be obtained at the office of the City Treasurer, 575
Dorset Street, South Burlington, Vermont 05403 or on the City’s website at
www.sburl.com.
Non-public safety employees earn 1.75 percent of average monthly compensation
per year of service. Average monthly compensation means the monthly c ompensation of
a participant averaged over the three (3) consecutive plan years for the date of
employment, including periods prior to the effective date of the plan, which produce the
highest monthly average. If a participant has less than three (3) consecutive plan years of
service between the date of employment to the date of termination, the average monthly
compensation will be based on the monthly compensation during the months of service
from the date of employment to the date of termination.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
47
NOTE 12 - DEFINED BENEFIT PENSION PLAN (CONTINUED)
Public safety employees earn 2.5 percent of average monthly compensation per
year of service limited to 25 years. Average monthly compensation means the monthly
compensation of a participant average over the three (3) highest consecutive years of the
last ten (10) years from the date of employment, including periods prior to the effective
date of the plan, which produce the highest monthly average. If a participant has less than
three (3) consecutive plan years of service from the date of employment to the date of
termination, the average monthly compensation will be based on the monthly
compensation during the months of service from the date of employment to the date of
termination. Public safety employees contribute 6.5% of their base salary in the plan.
The Plan provides death and disability benefits. Employees become eligible after
three years of service. Benefits vest 20 percent per year upon eligibility. E mployees are
100 percent vested after five years of participation that occurs at the end of the seventh
year. Normal retirement for the non-public safety employees is age 65 with early
retirement at age 60. Normal retirement for public safety employees is age 53 with early
retirement at age 50. Contributions to the plan reflect benefits attributed to employees’
services to date, as well as services expected to be earned in the future.
At June 30, 2014, the number of participants consisted of:
Non-Public
Public Safety Safety Group
Retired participants currently receiving benefits 27 35
Terminated vested or inactive but still employeed 11 32
Participants currently employed:78 32
Total participants 116 99
Ineligible employees 0 14
The City of South Burlington, Vermont’s current year aggregate compensation of
active participants in the pension plan equaled $6,333,287.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
48
NOTE 12 - DEFINED BENEFIT PENSION PLAN (CONTINUED)
The following sets forth the determination of normal cost of the plan for the year
ended June 30, 2014:
Non-Public
Public Safety Safety Group
1. Actual present value of future benefits:
A. Inactive participants 9,840,054$ 3,968,148$
B. Active participants 7,587,076 2,459,106
C. Total 17,427,130 6,427,254
2. Actuarial asset value:17,604,144 6,476,823
3. Present value of future employee contributions:306,771 -
4. Unfunded entry age accrued liability:665,916 133,441
5. Present value of future normal cost (1C-3+4):17,067,985 6,293,813
6. Present value of future payroll:203,190,298 58,820,682
7. Normal cost accrual rate (5/6):8.40%10.70%
8. Current payroll:4,719,558 1,613,729
9. Normal cost (7*8):567,359 143,930
The following sets forth the actuarial present value of accumulated plan benefits as
for June 30, 2014:
Non-Public
Public Safety Safety Group
Actuarial present value of vested accumulated
plan benefits
Inactive participants (retirees, term vested):9,840,054$ 3,968,148$
Actively employed participants 7,587,076 2,459,106
Present value of vested accumulated benefits 17,427,130 6,427,254
Present value of non-vested accumulated benefits 177,014 49,569
Total present value of future benefits 17,604,144 6,476,823
Actuarially computed value of accrued vested
Plan assets available to provide benefits 21,185,315 7,666,718
Unfunded pension benefit obligation - -
Funded ratio 120.3%118.4%
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
49
NOTE 12 - DEFINED BENEFIT PENSION PLAN (CONTINUED)
The following sets forth the asset fair market value of accumulated plan benefits as
for June 30, 2014:
Non-Public
Public Safety Safety Group
Asset fair market value at July 1, 2013:18,431,352$ 6,759,778$
Additional bond proceeds - -
Employer contributions:- -
Mandatory employee contributions:310,119 -
Benefit payments to participants:(928,083) (357,195)
Share of investment earnings (net of expenses):2,941,094 1,067,563
Asset fair market value at June 30, 2014 20,754,482 7,470,146
Employer contribution receivable:426,980 196,572
Employee contribution receivable:- -
Asset fair market value at June 30, 2014 21,181,462 7,666,718
Approximate annual rate of return for the plan year
(net of expenses): 16.38%
Significant actuarial assumptions used to compute the pension benefit obligations
and the actuarial present value of accumulated plan benefits are as follows:
Current actuarial valuation date July 1, 2014
Actuarial present value interest rate 7.50%
Projected salary increase: 4.00%
Employee contribution rate (Public Safety Only) 6.50%
Actuarial cost method Entry age normal
Mortality table used in determining
actuarial present values IRC Section 430-2014 Optional Combined Tables
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
50
NOTE 13 - DEFERRED COMPENSATION PLAN
INTERNATIONAL CITY MANAGERS ASSOCIATION – RETIREMENT CORPORATION
A. Plan Description
The City offers its employees a deferred compensation plan created in accordance
with Internal Revenue Code Section 457. The plan, available to all City employees,
permits them to defer a portion of their salary until future years. The deferred
compensation is not available to employees until termination, retirement, death or
unforeseen emergency.
All amounts of compensation deferred under the plan, all property and rights
purchased with those amounts, and all income attributable to those amounts, property, or
rights are (until paid or made available to the employee or other beneficiary) to be held in a
trust for the exclusive benefit of the participants and their beneficiaries.
It is the opinion of the City’s management that the City has no liability for losses
under the plan but does have the duty of due care that would be required of an ordinar y
prudent investor.
B. Funding Policy
The contribution requirements of plan members and the City are established and
may be amended by the City Council. The City matches voluntary contributions up to
5.5% of non-public safety personnel. Vesting occurs immediately.
The City’s contributions to the plan including employee contributions for 2014, 2013,
and 2012 were $310,119, $331,273, and $313,747, respectively.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
51
NOTE 14 - DEFICIT FUND BALANCES
At June 30, 2014 the City had the following deficit fund balances:
Non-major funds:
Road Opening Impact Fees (234)2,806$
Mobile data terminals (245)13,770
BYFAE Jag Grant (278)33,642
Market street federal (280)256,084
LED Signage/Crosswalks (283)15,409
Highway Safety Grant (290)908
Kennedy Drive Reconstruction (303)6,991
Exit 14B Staples 3rd Lane (318)74,982
Hayes Avenue Stormwater (328)5,668
Fire department donations 524
Total non-major funds 410,784$
The City is currently reviewing the condition of these overdrafts and a plan to fund
them.
NOTE 15 - COMMITMENTS AND CONTINGENCIES
The City of South Burlington, Vermont, has entered into a severance agreement
with one of its retirees, requiring the City to pay out accrued vacation, sick and
compensation time. The agreement term is for five years beginning January, 2012 and
ending January, 2016. The annual agreement cost is calculated based on number of
hours earned but not compensated over the duration of the retiree’s employment with the
City. Payments at the end of each fiscal year for the remainder of the agreement follow:
Fiscal Years
Ending
June 30,Amount
2015 17,119$
2016 17,119
For the twelve months ended June 30, 2014, the total agreement cost was $17,119.
All future contract amounts are subject to annual appropriation by the City of South
Burlington.
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2014
52
NOTE 15 - COMMITMENTS AND CONTINGENCIES (CONTINUED)
The City of South Burlington, Vermont contracts fo r management, water purchases
and other services from the Champlain Water District (CWD). The water department has
contracted with CWD to manage and maintain the water facility. This contract is renewed
annually. The terms of the management contract pro vide for hourly wages for the CWD
employees.
With regard to pending legal claims or any unasserted claims, it is not feasible at
this time to predict or determine their outcome. Management believes, however, that
settlement amounts, if any, will not have a material adverse effect on the City’s financial
position.
The City participates in various intergovernmental grant programs which may be
subject to future program compliance audits by the grantors or their representatives.
Accordingly, the City’s compliance with applicable grant requirement may be established at
some future date. The amount, if any, of any liabilities arising from the disallowance of
expenditures or ineligibility of grant revenues cannot be determined at this time.
53
Required Supplementary Information
Required supplementary information includes financial information and disclosures that are
required by the Government Accounting Standards Board but are not considered a part of
the basic financial statements. Such information includ es:
● Budgetary Comparison Schedule - Budgetary Basis - Budget and Actual -
General Fund
● Budgetary Comparison Schedule - Budgetary Basis - Budget and Actual -
General Fund Revenues
● Schedule of Funding Progress – Employee Pension Plan
SCHEDULE 1
CITY OF SOUTH BURLINGTON, VERMONT
BUDGETARY COMPARISON SCHEDULE – BUDGETARY BASIS
BUDGET AND ACTUAL – GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2014
54
Variance
Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 2,093,342$ 2,093,342$ 2,093,342$ -$
Resources (Inflows):
General tax revenue - municipal and education 50,655,927 50,655,927 50,916,278 260,351
Charges for services 3,519,893 3,519,893 3,938,550 418,657
Investment income 80,000 80,000 - (80,000)
Other revenue 450 450 - (450)
Debt proceeds 983,000 983,000 - (983,000)
Transfers from other funds 133,000 133,000 102,726 (30,274)
Amounts Available for Appropriation 57,465,612 57,465,612 57,050,896 (414,716)
Charges to Appropriations (Outflows):
General government 6,611,859 6,611,859 6,494,070 117,789
Public safety 7,169,462 7,169,462 7,177,360 (7,898)
Public works 2,356,605 2,356,605 2,564,506 (207,901)
Social services 642,525 642,525 643,042 (517)
Recreation and culture 1,183,874 1,183,874 1,167,774 16,100
Debt service 1,718,280 1,718,280 1,716,759 1,521
Education 34,889,208 34,889,208 34,889,208 -
Transfers to other funds 1,886,700 1,886,700 1,361,632 525,068
Total Charges to Appropriations 56,458,513 56,458,513 56,014,351 444,162
Budgetary Fund Balance, June 30 1,007,099$ 1,007,099$ 1,036,545$ 29,446$
Utilization of unassigned fund balance 1,086,243$ 1,086,243$ -$ (1,086,243)$
See accompanying independent auditors' report and notes to financial statements.
Budgeted Amounts
SCHEDULE 2
CITY OF SOUTH BURLINGTON, VERMONT
BUDGETARY COMPARISON SCHEDULE – BUDGETARY BASIS
BUDGET AND ACTUAL – GENERAL FUND REVENUES
FOR THE YEAR ENDED JUNE 30, 2014
55
Variance
Original Final Positive
Budget Budget Actual (Negative)
REVENUES
General tax revenues:
Property taxes 11,980,219$ 11,980,219$ 12,194,043$ 213,824$
Property taxes (education)34,889,208 34,889,208 34,889,208 -
Local options tax 3,550,000 3,550,000 3,575,921 25,921
Interest and penalties 236,500 236,500 257,106 20,606
Charges for services:
Administrative services 450,672 450,672 478,055 27,383
Fire department 210,000 210,000 457,783 247,783
Other town clerk fees 227,850 227,850 220,583 (7,267)
Building & sign permits 190,000 190,000 303,737 113,737
Other planning fees 113,000 113,000 114,132 1,132
Vermont district court 110,000 110,000 53,503 (56,497)
Police department 262,280 262,280 189,188 (73,092)
Highway department 1,017,841 1,017,841 1,177,344 159,503
Recreation 5,200 5,200 5,495 295
Contracted programs 204,900 204,900 189,436 (15,464)
Ambulance 704,000 704,000 721,815 17,815
Library 24,150 24,150 27,479 3,329
Investment income 80,000 80,000 - (80,000)
Other income
Miscellaneous 450 450 - (450)
Debt proceeds 983,000 983,000 - (983,000)
Transfers from other funds 133,000 133,000 102,726 (30,274)
Use of committed fund balance 1,086,243 1,086,243 - (1,086,243)
Total revenues 56,458,513$ 56,458,513$ 54,957,554$ (1,500,959)$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE 3
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF FUNDING PROGRESS – EMPLOYEE PENSION PLAN
56
PV of
Accumulated
Fair Value Plan Benefits -Unfunded UAAL as a
Actuarial of Plan Frozen Initial Plan Funded Covered Percentage of
Valuation Assets Liability Benefits Ratio Payroll Covered Payroll
Date (a)(b)(b - a)(a/b)(c)((b-a)/c)
7/1/2011 22,140,718$ 20,777,281$ (1,363,437)$ 106.56%6,004,876$ -22.71%
7/1/2012 22,354,550 22,362,659 8,109 99.96%5,623,012 0.14%
7/1/2013 25,206,769 23,824,374 (1,382,395) 105.80%5,611,009 -24.64%
7/1/2014 28,852,033 24,080,967 (4,771,066) 119.81%6,333,287 -75.33%
See accompanying independent auditors' report and notes to financial statements.
Other Supplementary Information
57
Other supplementary information includes financial statements and schedules not
required by the Government Accounting Standards Board, nor a part of the basic financial
statements, but are presented for purposes of additional analysis.
● Schedule of Departmental Operations
● Combining Balance Sheet - Nonmajor Governmental Funds
● Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Governmental Funds
● Combining Balance Sheet - Nonmajor Special Revenue Funds
● Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances - Nonmajor Special Revenue Funds
● Combining Balance Sheet – Nonmajor Capital Projects Funds
● Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Capital Project Funds
● Combining Balance Sheet – Nonmajor Permanent Funds
● Combining Schedule of Revenues, Expenditures and Changes in
Fund Balances – Nonmajor Permanent Funds
● Schedule of General Capital Assets by Function
● Schedule of Changes in General Capital Assets by Function
SCHEDULE A
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF DEPARTMENTAL OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2014
58
Variance
Original Budget Final Positive
Budget Adjustments Budget Actual (Negative)
General government
City council 177,050$ -$ 177,050$ 356,425$ (179,375)$
Employee benefits 3,740,890 - 3,740,890 3,531,183 209,707
City manager 526,609 - 526,609 490,053 36,556
City clerk 196,916 - 196,916 198,196 (1,280)
Legal/accounting/actuary 310,500 - 310,500 325,982 (15,482)
Administrative services 957,990 - 957,990 898,871 59,119
Information technology 181,000 - 181,000 161,996 19,004
General ledger/payroll 71,502 - 71,502 83,349 (11,847)
Assessing/tax 128,075 - 128,075 140,208 (12,133)
Planning/design review 318,427 - 318,427 304,907 13,520
Natural resources 2,900 - 2,900 2,900 -
6,611,859 - 6,611,859 6,494,070 117,789
Public safety
Fire department 2,052,702 - 2,052,702 2,269,290 (216,588)
Ambulance 1,000,228 - 1,000,228 877,276 122,952
Police department 4,116,532 - 4,116,532 4,030,794 85,738
7,169,462 - 7,169,462 7,177,360 (7,898)
Public works
Highway department 2,356,605 - 2,356,605 2,564,506 (207,901)
2,356,605 - 2,356,605 2,564,506 (207,901)
Social services
County court 123,700 - 123,700 124,220 (520)
Winooski Valley Park 54,000 - 54,000 54,000 -
C.C.T.A 429,347 - 429,347 429,347 -
Regional planning 18,325 - 18,325 18,322 3
Metropolitan planning 17,153 - 17,153 17,153 -
642,525 - 642,525 643,042 (517)
SCHEDULE A (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF DEPARTMENTAL OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2014
59
Variance
Original Budget Final Positive
Budget Adjustments Budget Actual (Negative)
Recreation and culture
Recreaton administration 241,698 - 241,698 212,102 29,596
Programs 16,857 - 16,857 32,813 (15,956)
Facilities 147,148 - 147,148 158,404 (11,256)
Contracted programs 146,095 - 146,095 128,734 17,361
Community library 432,645 - 432,645 446,940 (14,295)
Park maintenance 199,431 - 199,431 188,781 10,650
1,183,874 - 1,183,874 1,167,774 16,100
Debt service
Principal public works facility 98,568 - 98,568 98,568 -
Principal Kennedy drive recon.22,440 - 22,440 22,508 (68)
Principal Lime Kiln bridge 22,440 - 22,440 22,508 (68)
Prinicpal F/D building improvements 30,090 - 30,090 30,005 85
Prinicpal emergency center 130,000 - 130,000 130,000 -
Principal police headquarters 360,000 - 360,000 360,000 -
Principal Parkland/Brand farm 40,000 - 40,000 40,000 -
Principal pension liabilitiy 262,974 - 262,974 262,974 -
Interest public works facility 40,670 - 40,670 40,669 1
Interest Kennedy drive recon.11,955 - 11,955 11,989 (34)
Interest Lime Kiln bridge 11,955 - 11,955 11,989 (34)
Interest F/D building improvements 16,030 - 16,030 15,982 48
Interest emergency center 2,405 - 2,405 1,811 594
Interest police headquarters 256,644 - 256,644 256,644 -
Interest sewer fund note 13,000 - 13,000 12,005 995
Interest Parkland/Brand farm 1,134 - 1,134 1,133 1
Interest pension liability 397,975 - 397,975 397,974 1
1,718,280 - 1,718,280 1,716,759 1,520
SCHEDULE A (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF DEPARTMENTAL OPERATIONS
FOR THE YEAR ENDED JUNE 30, 2014
60
Variance
Original Budget Final Positive
Budget Adjustments Budget Actual (Negative)
Education 34,889,208 - 34,889,208 34,889,208 -
Transfers 1,886,700 - 1,886,700 1,361,632 130,660
Total Expenditures 56,458,513$ -$ 56,458,513$ 56,014,351$ 49,753$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE B
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET – NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2014
61
Special Capital Total Nonmajor
Revenue Project Permanent Governmental
Funds Funds Funds Funds
ASSETS
Cash and cash equivalents 1,438,173$ -$ 21,289$ 1,459,462$
Investments - - 413,041 413,041
Due from agencies - - 75 75
Due from other funds 1,497,090 1,679,701 101,391 3,278,182
TOTAL ASSETS 2,935,263$ 1,679,701$ 535,796$ 5,150,760$
LIABILITIES
Accounts payable -$ -$ -$ -$
Due to agencies - - 5,490 5,490
Due to other funds 624,787 87,641 757 713,185
TOTAL LIABILITIES 624,787 87,641 6,247 718,675
FUND BALANCES
Nonspendable - - - -
Restricted 597,911 260,689 523,341 1,381,941
Committed 1,860,350 1,419,012 6,732 3,286,094
Assigned 174,834 - - 174,834
Unassigned (322,619) (87,641) (524) (410,784)
TOTAL FUND BALANCES 2,310,476 1,592,060 529,549 4,432,085
TOTAL LIABILITIES AND FUND
BALANCES 2,935,263$ 1,679,701$ 535,796$ 5,150,760$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE C
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND
BALANCES – NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
62
Special Capital Total Nonmajor
Revenue Project Permanent Governmental
Funds Funds Funds Funds
REVENUES
Intergovernmental revenue 385,113$ 34,450$ -$ 419,563$
Charges for service 477,532 - - 477,532
Other income 95,019 1,486 66,990 163,495
Investment income, net of unrealized
gains/(losses)- - 53,643 53,643
TOTAL REVENUES 957,664 35,936 120,633 1,114,233
EXPENDITURES
Program expenses 490,746 - 104,129 594,875
Public safety - - 525 525
Capital outlay 34,144 508,947 - 543,091
TOTAL EXPENDITURES 524,890 508,947 104,654 1,138,491
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 432,774 (473,011) 15,979 (24,258)
OTHER FINANCING SOURCES (USES)
Operating transfers in 243,081 1,180,500 - 1,423,581
Operating transfers (out)(144,245) - (26,930) (171,175)
TOTAL OTHER FINANCING SOURCES (USES)98,836 1,180,500 (26,930) 1,252,406
NET CHANGE IN FUND BALANCES 531,610 707,489 (10,951) 1,228,148
FUND BALANCES, JULY 1 1,778,866 884,571 540,500 3,203,937
FUND BALANCES, JUNE 30 2,310,476$ 1,592,060$ 529,549$ 4,432,085$
See accompanying independent auditors' report and notes to financial statements.
63
Special Revenue Funds
Special revenue funds are established to account for the proceeds of specific
revenue sources (other than expendable trusts or for major capital projects) that are legally
restricted to expenditures for specific purposes.
SCHEDULE D
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
64
203 205 206 207 210 211
Fire Police Police MPG 10
Impact Project Off-Duty Forfeiture Natural EMTP
Fees Dare Work Fund Resources Training
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$
Investments - - - - - -
Due from other funds 39,135 809 - 97,752 9,472 30,000
TOTAL ASSETS 39,135$ 809$ -$ 97,752$ 9,472$ 30,000$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$
Due to other funds - - - - - -
TOTAL LIABILITIES - - - - - -
FUND BALANCES
Nonspendable - - - - - -
Restricted - 809 - 97,752 9,472 30,000
Committed 39,135 - - - - -
Assigned - - - - - -
Unassigned - - - - - -
TOTAL FUND BALANCES 39,135 809 - 97,752 9,472 30,000
TOTAL LIABILITIES AND FUND
BALANCES 39,135$ 809$ -$ 97,752$ 9,472$ 30,000$
SCHEDULE D (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
65
212 215 216 219 220 221
Fire Dept.Clerk MPG FY 08 Recreation Highway
Fueling Off-Duty Computer-Growth Impact Impact
Station Work ization Center Fees Fees
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ 1,331,542$
Investments - - - - - -
Due from other funds 24,600 - 151,471 27,098 493,075 -
TOTAL ASSETS 24,600$ -$ 151,471$ 27,098$ 493,075$ 1,331,542$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$
Due to other funds - - - - - 287,557
TOTAL LIABILITIES - - - - - 287,557
FUND BALANCES
Nonspendable - - - - - -
Restricted 24,600 - - - - -
Committed - - 151,471 - 493,075 1,043,985
Assigned - - - 27,098 - -
Unassigned - - - - - -
TOTAL FUND BALANCES 24,600 - 151,471 27,098 493,075 1,043,985
TOTAL LIABILITIES AND FUND
BALANCES 24,600$ -$ 151,471$ 27,098$ 493,075$ 1,331,542$
SCHEDULE D (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
66
222 226 227 228 230 234
School Dorset Road
Impact Community Records Reparative Street H2O Opening
Fees Garden Preservation Board Milot Impact Fees
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$
Investments - - - - - -
Due from other funds - 2,168 138,682 1,633 35,305 -
TOTAL ASSETS -$ 2,168$ 138,682$ 1,633$ 35,305$ -$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$
Due to other funds - - - - - 2,806
TOTAL LIABILITIES - - - - - 2,806
FUND BALANCES
Nonspendable - - - - - -
Restricted - - - - 35,305 -
Committed - 2,168 - 1,633 - -
Assigned - - 138,682 - - -
Unassigned - - - - - (2,806)
TOTAL FUND BALANCES - 2,168 138,682 1,633 35,305 (2,806)
TOTAL LIABILITIES AND FUND
BALANCES -$ 2,168$ 138,682$ 1,633$ 35,305$ -$
SCHEDULE D (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
67
235 238 243 245 251 261
FEMA Senior South Mobile Fields Use C/L
Mimic Citizens Village Data Impact Specific
Grant Organization Rec. Impact Terminals Fees Outlays
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$
Investments - - - - - -
Due from other funds 58,502 4,631 105,189 - 4,094 2,603
TOTAL ASSETS 58,502$ 4,631$ 105,189$ -$ 4,094$ 2,603$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$
Due to other funds - - - 13,770 - -
TOTAL LIABILITIES - - - 13,770 - -
FUND BALANCES
Nonspendable - - - - - -
Restricted 58,502 - 105,189 - - -
Committed - - - - - 2,603
Assigned - 4,631 - - 4,094 -
Unassigned - - - (13,770) - -
TOTAL FUND BALANCES 58,502 4,631 105,189 (13,770) 4,094 2,603
TOTAL LIABILITIES AND FUND
BALANCES 58,502$ 4,631$ 105,189$ -$ 4,094$ 2,603$
SCHEDULE D (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
68
265 269 275 277 278 280
Tree MPO/Traffic Stag BYFAE Market
Maintenance/Overlay Transportation EPA Jag Street
Replacement Grant Action Grant Grant (Federal)
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$
Investments - - - - - -
Due from other funds 11,741 4,163 20 6,244 - -
TOTAL ASSETS 11,741$ 4,163$ 20$ 6,244$ -$ -$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$
Due to other funds - - - - 33,642 256,084
TOTAL LIABILITIES - - - - 33,642 256,084
FUND BALANCES
Nonspendable - - - - - -
Restricted - 4,163 - 6,244 - -
Committed 11,741 - - - - -
Assigned - - 20 - - -
Unassigned - - - - (33,642) (256,084)
TOTAL FUND BALANCES 11,741 4,163 20 6,244 (33,642) (256,084)
TOTAL LIABILITIES AND FUND
BALANCES 11,741$ 4,163$ 20$ 6,244$ -$ -$
SCHEDULE D (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
69
283 286 288 290 298 299
LED C/L Resource A/P Highway Rooms
Signage/Training A/Guard Safety Meals Safer
Crosswalks Grant Enviromental Grant Tax Grant
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$
Investments - - - - - -
Due from other funds - - 15,964 - 209,555 356
TOTAL ASSETS -$ -$ 15,964$ -$ 209,555$ 356$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$
Due to other funds 15,409 - - 908 - -
TOTAL LIABILITIES 15,409 - - 908 - -
FUND BALANCES
Nonspendable - - - - - -
Restricted - - 15,964 - 209,555 356
Committed - - - - - -
Assigned - - - - - -
Unassigned (15,409) - - (908) - -
TOTAL FUND BALANCES (15,409) - 15,964 (908) 209,555 356
TOTAL LIABILITIES AND FUND
BALANCES -$ -$ 15,964$ -$ 209,555$ 356$
SCHEDULE D (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS
JUNE 30, 2014
70
611 616 617 620
Police
Senior Police Canine Bequeath
Citizens Bequeath Unit Fund Totals
ASSETS
Cash and cash equivalents -$ 31,631$ -$ 75,000$ 1,438,173$
Investments - - - - -
Due from other funds 309 17,519 5,000 - 1,497,090
TOTAL ASSETS 309$ 49,150$ 5,000$ 75,000$ 2,935,263$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$
Due to other funds - - - 14,611 624,787
TOTAL LIABILITIES - - - 14,611 624,787
FUND BALANCES
Nonspendable - - - - -
Restricted - - - - 597,911
Committed - 49,150 5,000 60,389 1,860,350
Assigned 309 - - - 174,834
Unassigned - - - - (322,619)
TOTAL FUND BALANCES 309 49,150 5,000 60,389 2,310,476
TOTAL LIABILITIES AND FUND
BALANCES 309$ 49,150$ 5,000$ 75,000$ 2,935,263$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE E
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
71
203 205 206 207 210 211
Fire Police Police MPG 10
Impact Project Off-Duty Forfeiture Natural EMTP
Fees Dare Work Fund Resources Training
REVENUES
Intergovernmental revenue -$ -$ -$ 76,111$ 10,991$ -$
Charges for service 49,979 - 15,366 - - -
Other income - - - - - -
TOTAL REVENUES 49,979 - 15,366 76,111 10,991 -
EXPENDITURES
Program expenses - - - - - -
Capital outlay - - - 7,950 - -
TOTAL EXPENDITURES - - - 7,950 - -
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 49,979 - 15,366 68,161 10,991 -
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - - 10,000
Operating transfers (out)(50,000) - (15,366) (12,680) - -
TOTAL OTHER FINANCING SOURCES (USES)(50,000) - (15,366) (12,680) - 10,000
NET CHANGE IN FUND BALANCES (21) - - 55,481 10,991 10,000
FUND BALANCES, JULY 1 39,156 809 - 42,271 (1,519) 20,000
FUND BALANCES, JUNE 30 39,135$ 809$ -$ 97,752$ 9,472$ 30,000$
SCHEDULE E (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
72
212 215 216 219 220 221
Fire Dept.Clerk MPG FY 08 Recreation Highway
Fueling Off-Duty Computer-Growth Impact Impact
Station Work ization Center Fees Fees
REVENUES
Intergovernmental revenue -$ -$ -$ 107,500$ -$ -$
Charges for service - 2,500 - - 76,581 159,767
Other income - - 58,642 - - -
TOTAL REVENUES - 2,500 58,642 107,500 76,581 159,767
EXPENDITURES
Program expenses - (1,382) 34,426 90,608 - -
Capital outlay - - 6,490 2,352 - -
TOTAL EXPENDITURES - (1,382) 40,916 92,960 - -
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES - 3,882 17,726 14,540 76,581 159,767
OTHER FINANCING SOURCES (USES)
Operating transfers in 8,200 - - - - -
Operating transfers (out)- (4,459) - (8,839) - -
TOTAL OTHER FINANCING SOURCES (USES)8,200 (4,459) - (8,839) - -
NET CHANGE IN FUND BALANCES 8,200 (577) 17,726 5,701 76,581 159,767
FUND BALANCES, JULY 1 16,400 577 133,745 21,397 416,494 884,218
FUND BALANCES, JUNE 30 24,600$ -$ 151,471$ 27,098$ 493,075$ 1,043,985$
SCHEDULE E (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
73
222 226 227 228 230 234
School Dorset Road
Impact Community Records Reparative Street H2O Opening
Fees Garden Preservation Board Milot Impact Fees
REVENUES
Intergovernmental revenue -$ -$ -$ -$ -$ -$
Charges for service 44,901 - 21,098 - 4,384 24,654
Other income - 1,955 - - - -
TOTAL REVENUES 44,901 1,955 21,098 - 4,384 24,654
EXPENDITURES
Program expenses - 463 7,511 - - -
Capital outlay - - - - - -
TOTAL EXPENDITURES - 463 7,511 - - -
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 44,901 1,492 13,587 - 4,384 24,654
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - - -
Operating transfers (out)(44,901) - - - - -
TOTAL OTHER FINANCING SOURCES (USES)(44,901) - - - - -
NET CHANGE IN FUND BALANCES - 1,492 13,587 - 4,384 24,654
FUND BALANCES, JULY 1 - 676 125,095 1,633 30,921 (27,460)
FUND BALANCES, JUNE 30 -$ 2,168$ 138,682$ 1,633$ 35,305$ (2,806)$
SCHEDULE E (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
74
235 238 243 245 251 261
FEMA Senior South Mobile Fields Use C/L
Mimic Citizens Village Data Impact Specific
Grant Organization Rec. Impact Terminals Fees Outlays
REVENUES
Intergovernmental revenue 17,620$ -$ -$ -$ -$ -$
Charges for service - - 41,448 - 36,854 -
Other income - - - - - 1,577
TOTAL REVENUES 17,620 - 41,448 - 36,854 1,577
EXPENDITURES
Program expenses 10,334 - - - 38,008 1,249
Capital outlay - - - 7,611 - -
TOTAL EXPENDITURES 10,334 - - 7,611 38,008 1,249
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 7,286 - 41,448 (7,611) (1,154) 328
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - - -
Operating transfers (out)- - - - - -
TOTAL OTHER FINANCING SOURCES (USES)- - - - - -
NET CHANGE IN FUND BALANCES 7,286 - 41,448 (7,611) (1,154) 328
FUND BALANCES, JULY 1 51,216 4,631 63,741 (6,159) 5,248 2,275
FUND BALANCES, JUNE 30 58,502$ 4,631$ 105,189$ (13,770)$ 4,094$ 2,603$
SCHEDULE E (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
75
265 269 275 277 278 280
Tree MPO/Traffic Stag BYFAE Market
Maintenance/Overlay Transportation EPA Jag Street
Replacement Grant Action Grant Grant (Federal)
REVENUES
Intergovernmental revenue -$ -$ -$ -$ -$ 167,316$
Charges for service - - - - - -
Other income - - - - - -
TOTAL REVENUES - - - - - 167,316
EXPENDITURES
Program expenses - - - - - 309,310
Capital outlay - - - - - -
TOTAL EXPENDITURES - - - - - 309,310
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES - - - - - (141,994)
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - - -
Operating transfers (out)(8,000) - - - - -
TOTAL OTHER FINANCING SOURCES (USES)(8,000) - - - - -
NET CHANGE IN FUND BALANCES (8,000) - - - - (141,994)
FUND BALANCES, JULY 1 19,741 4,163 20 6,244 (33,642) (114,090)
FUND BALANCES, JUNE 30 11,741$ 4,163$ 20$ 6,244$ (33,642)$ (256,084)$
SCHEDULE E (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
76
283 286 288 290 298 299
LED C/L Resource A/P Highway Rooms
Signage/Training A/Guard Safety Meal Safer
Crosswalks Grant Enviromental Grant Tax Grant
REVENUES
Intergovernmental revenue -$ 219$ -$ 5,000$ -$ 356$
Charges for service - - - - - -
Other income - - - - - -
TOTAL REVENUES - 219 - 5,000 - 356
EXPENDITURES
Program expenses - 219 - - - -
Capital outlay - - - 9,741 - -
TOTAL EXPENDITURES - 219 - 9,741 - -
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES - - - (4,741) - 356
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - 209,555 -
Operating transfers (out)- - - - - -
TOTAL OTHER FINANCING SOURCES (USES)- - - - 209,555 -
NET CHANGE IN FUND BALANCES - - - (4,741) 209,555 356
FUND BALANCES, JULY 1 (15,409) - 15,964 3,833 - -
FUND BALANCES, JUNE 30 (15,409)$ -$ 15,964$ (908)$ 209,555$ 356$
SCHEDULE E (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE S
NONMAJOR SPECIAL REVENUE FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
77
611 616 617 620
Police
Senior Police Canine Bequeath
Citizens Bequeath Unit Fund Totals
REVENUES
Intergovernmental revenue -$ -$ -$ -$ 385,113$
Charges for service - - - - 477,532
Other income - - - 32,845 95,019
TOTAL REVENUES - - - 32,845 957,664
EXPENDITURES
Program expenses - - - - 490,746
Capital outlay - - - - 34,144
TOTAL EXPENDITURES - - - - 524,890
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES - - - 32,845 432,774
OTHER FINANCING SOURCES (USES)
Operating transfers in - 15,326 - - 243,081
Operating transfers (out)- - - - (144,245)
TOTAL OTHER FINANCING SOURCES (USES)- 15,326 - - 98,836
NET CHANGE IN FUND BALANCES - 15,326 - 32,845 531,610
FUND BALANCES, JULY 1 309 33,824 5,000 27,544 1,778,866
FUND BALANCES, JUNE 30 309$ 49,150$ 5,000$ 60,389$ 2,310,476$
See accompanying independent auditors' report and notes to financial statements.
78
Capital Projects Funds
Capital projects funds are established to account for financial resources to be used
for the acquisition or construction of major capital facilities, other than those financed by
proprietary or trust fund.
SCHEDULE F
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR CAPITAL PROJECT FUNDS
JUNE 30, 2014
79
303 306 307 309 312 318
301 Kennedy Fire Ambulance Open Space Tilley Exit 14B
Reappraisal Drive Department Equipment Special Recreation Staples
Fund Reconstruction Fund Replacement Assessment Path 3rd Lane
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$ -$
Due from other funds 236,145 - 127,380 105,000 125,487 825,000 -
TOTAL ASSETS 236,145$ -$ 127,380$ 105,000$ 125,487$ 825,000$ -$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$ -$
Due to other funds - 6,991 - - - - 74,982
TOTAL LIABILITIES - 6,991 - - - - 74,982
FUND BALANCES
Nonspendable - - - - - - -
Restricted - - - - - - -
Committed 236,145 - 127,380 105,000 125,487 825,000 -
Assigned - - - - - - -
Unassigned - (6,991) - - - - (74,982)
TOTAL FUND BALANCES 236,145 (6,991) 127,380 105,000 125,487 825,000 (74,982)
TOTAL LIABILITIES AND FUND
BALANCES 236,145$ -$ 127,380$ 105,000$ 125,487$ 825,000$ -$
SCHEDULE F (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR CAPITAL PROJECT FUNDS
JUNE 30, 2014
80
323 324 326 327 328
ARRA ARRA 325 ARRA ARRA Hayes
Quarry Twin ARRA Winding Harbor Avenue
Ridge S/W Oaks Ridgewood Brook Heights Stormwater Totals
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$ -$
Due from other funds 37,327 106,248 60,517 45,061 11,536 - 1,679,701
TOTAL ASSETS 37,327$ 106,248$ 60,517$ 45,061$ 11,536$ -$ 1,679,701$
LIABILITIES
Accounts payable -$ -$ -$ -$ -$ -$ -$
Due to other funds - - - - - 5,668 87,641
TOTAL LIABILITIES - - - - - 5,668 87,641
FUND BALANCES
Nonspendable - - - - - - -
Restricted 37,327 106,248 60,517 45,061 11,536 - 260,689
Committed - - - - - - 1,419,012
Assigned - - - - - - -
Unassigned - - - - - (5,668) (87,641)
TOTAL FUND BALANCES 37,327 106,248 60,517 45,061 11,536 (5,668) 1,592,060
TOTAL LIABILITIES AND FUND
BALANCES 37,327$ 106,248$ 60,517$ 45,061$ 11,536$ -$ 1,679,701$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE G
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
81
303 306 307 309 312 318
301 Kennedy Fire Ambulance Open Space Tilley Exit 14B
Reappraisal Drive Department Equipment Special Recreation Staples
Fund Reconstruction Fund Replacement Assessment Path 3rd Lane
REVENUES
Intergovenmental revenue -$ -$ -$ -$ -$ -$ 34,450$
Other income - - - - 1,486 - -
TOTAL REVENUES - - - - 1,486 - 34,450
EXPENDITURES
Program expenses - - - - - - -
Capital outlay - - 229,620 - 224,340 - 54,987
TOTAL EXPENDITURES - - 229,620 - 224,340 - 54,987
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - (229,620) - (222,854) - (20,537)
OTHER FINANCING SOURCES (USES)
Operating transfers in 95,500 - 165,000 - 285,000 635,000 -
Operating transfers (out)- - - - - - -
TOTAL OTHER FINANCING SOURCES
(USES)95,500 - 165,000 - 285,000 635,000 -
NET CHANGE IN FUND BALANCES 95,500 - (64,620) - 62,146 635,000 (20,537)
FUND BALANCES, JULY 1 140,645 (6,991) 192,000 105,000 63,341 190,000 (54,445)
FUND BALANCES, JUNE 30 236,145$ (6,991)$ 127,380$ 105,000$ 125,487$ 825,000$ (74,982)$
SCHEDULE G (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR CAPITAL PROJECTS FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
82
323 324 326 327 328
ARRA ARRA 325 ARRA ARRA Hayes
Quarry Twin ARRA Winding Harbor Avenue
Ridge S/W Oaks Ridgewood Brook Heights Stormwater Totals
REVENUES
Intergovenmental revenue -$ -$ -$ -$ -$ -$ 34,450$
Other income - - - - - - 1,486
TOTAL REVENUES - - - - - - 35,936
EXPENDITURES
Program expenses - - - - - - -
Capital outlay - - - - - - 508,947
TOTAL EXPENDITURES - - - - - - 508,947
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES - - - - - - (473,011)
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - - - 1,180,500
Operating transfers (out)- - - - - - -
TOTAL OTHER FINANCING SOURCES
(USES)- - - - - - 1,180,500
NET CHANGE IN FUND BALANCES - - - - - - 707,489
FUND BALANCES, JULY 1 37,327 106,248 60,517 45,061 11,536 (5,668) 884,571
FUND BALANCES, JUNE 30 37,327$ 106,248$ 60,517$ 45,061$ 11,536$ (5,668)$ 1,592,060$
See accompanying independent auditors' report and notes to financial statements.
83
Permanent Funds
Permanent funds are used to account for assets held by the City of South
Burlington, Vermont in trust or as an agent for individuals, private organizations, other
governmental units and/or other funds. The se funds have been established for the
provision and/or maintenance of the cemeteries and various community organizations.
SCHEDULE H
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR PERMANENT FUNDS
JUNE 30, 2014
84
Community
Library Community Recreation Veterans
Cemetery Trust Chorus Donation P.A.C.T.Memorial
ASSETS
Cash and cash equivalents -$ -$ -$ -$ -$ -$
Investments - - - - - -
Due from other agencies - - - - - -
Due from other funds 5,099 63,977 8 5,799 2,795 17,298
TOTAL ASSETS 5,099$ 63,977$ 8$ 5,799$ 2,795$ 17,298$
LIABILITIES
Due to other funds -$ -$ -$ -$ -$ -$
Due to agencies - - 8 - - -
TOTAL LIABILITIES - - 8 - - -
FUND BALANCES
Nonspendable - - - - - -
Restricted 5,099 63,977 - - 2,795 17,298
Committed - - - 5,799 - -
Assigned - - - - - -
Unassigned - - - - - -
TOTAL FUND BALANCES 5,099 63,977 - 5,799 2,795 17,298
TOTAL LIABILITIES AND FUND
BALANCES 5,099$ 63,977$ 8$ 5,799$ 2,795$ 17,298$
SCHEDULE H (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING BALANCE SHEET - NONMAJOR PERMANENT FUNDS
JUNE 30, 2014
85
Recreation Fire Community
Library Path Department Dog Park Music
(Blanchette)Donations Donations Donations Festival Totals
ASSETS
Cash and cash equivalents 21,289$ -$ -$ -$ -$ 21,289$
Investments 413,041 - - - - 413,041
Due from agencies - - - - 75 75
Due from other funds - 5,482 - 933 - 101,391
TOTAL ASSETS 434,330$ 5,482$ -$ 933$ 75$ 535,796$
LIABILITIES
Due to other funds 158$ -$ 524$ -$ 75$ 757$
Due to agencies - 5,482 - - - 5,490
TOTAL LIABILITIES 158 5,482 524 - 75 6,247
FUND BALANCES
Nonspendable - - - - - -
Restricted 434,172 - - - - 523,341
Committed - - - 933 - 6,732
Assigned - - - - - -
Unassigned - - (524) - - (524)
TOTAL FUND BALANCES 434,172 - (524) 933 - 529,549
TOTAL LIABILITIES AND FUND
BALANCES 434,330$ 5,482$ -$ 933$ 75$ 535,796$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE I
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULES OF REVENUES, EXPENDITURES, CHANGES IN FUND BALANCES
NONMAJOR PERMANENT FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
86
Community
Library Community Recreation Veterans
Cemetery Trust Chorus Donation P.A.C.T.Memorial
REVENUES
Investment income, net of unrealized gains/(losses)-$ -$ -$ -$ -$ -$
Other income 500 7,808 9,401 13,981 3,700 30,918
TOTAL REVENUES 500 7,808 9,401 13,981 3,700 30,918
EXPENDITURES
Public safety - - - - - -
Other - 3,141 9,401 14,012 3,768 73,807
TOTAL EXPENDITURES - 3,141 9,401 14,012 3,768 73,807
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 500 4,667 - (31) (68) (42,889)
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - -
Operating transfers (out)- - - - - -
TOTAL OTHER FINANCING SOURCES (USES)- - - - - -
NET CHANGE IN FUND BALANCES 500 4,667 - (31) (68) (42,889)
FUND BALANCES, JULY 1 4,599 59,310 - 5,830 2,863 60,187
FUND BALANCES, JUNE 30 5,099$ 63,977$ -$ 5,799$ 2,795$ 17,298$
SCHEDULE I (CONTINUED)
CITY OF SOUTH BURLINGTON, VERMONT
COMBINING SCHEDULES OF REVENUES, EXPENDITURES, CHANGES IN FUND BALANCES
NONMAJOR PERMANENT FUNDS
FOR THE YEAR ENDED JUNE 30, 2014
87
Recreation Fire Community
Library Path Department Dog Park Music
(Blanchette)Donations Donations Donations Festival Totals
REVENUES
Investment income, net of unrealized gains/(losses)53,643$ -$ -$ -$ -$ 53,643$
Other income - - 672 10 - 66,990
TOTAL REVENUES 53,643 - 672 10 - 120,633
EXPENDITURES
Public safety - - 525 - - 525
Other - - - - - 104,129
TOTAL EXPENDITURES - - 525 - - 104,654
EXCESS OF REVENUES OVER (UNDER)
EXPENDITURES 53,643 - 147 10 - 15,979
OTHER FINANCING SOURCES (USES)
Operating transfers in - - - - - -
Operating transfers (out)(26,930) - - - - (26,930)
TOTAL OTHER FINANCING SOURCES (USES)(26,930) - - - - (26,930)
NET CHANGE IN FUND BALANCES 26,713 - 147 10 - 26,870
FUND BALANCES, JULY 1 407,459 - (671) 923 - 540,500
FUND BALANCES, JUNE 30 434,172$ -$ (524)$ 933$ -$ 529,549$
See accompanying independent auditors' report and notes to financial statements.
General Capital Assets
88
General capital assets are those assets related to activities reported in the
governmental funds. These assets are reported in the governmental activities column of
the government-wide statement of net position.
SCHEDULE J
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF GENERAL CAPITAL ASSETS BY FUNCTION
JUNE 30, 2014
89
Furniture,
Land and Buildings Fixtures,
Non-depreciable Buildings Improvements Equipment
Assets & Land Improvements & Vehicles Infrastructure Total
General Government 329,511$ 1,773,721$ 229,135$ -$ 2,332,367$
Ambulance - - 219,380 - 219,380
Fire 1,118,500 6,314,977 2,406,970 - 9,840,447
Police - 7,319,538 1,715,596 - 9,035,134
Highway 904,654 - 2,132,599 511,572 3,548,825
Public Works 6,621,526 791,049 575,390 36,475,436 44,463,401
Library - - 12,084 - 12,084
Recreation 2,610,952 355,945 141,769 2,087,056 5,195,722
Health 280,500 681,648 - 108,305 1,070,453
Airport 21,375,571 - - - 21,375,571
City Wide 1,583,200 8,600 - - 1,591,800
Storm Water Utilities 30,000 154,994 616,202 2,502,117 3,303,313
Water Pollution Control 488,000 13,170,884 467,094 897,834 15,023,812
Water Department 216,178 - 6,647,756 - 6,863,934
Total General Capital Assets 35,558,592 30,571,356 15,163,975 42,582,320 123,876,243
Less: Accumulated Depreciation - (20,022,517) (7,988,944) (33,554,258) (61,565,719)
Net General Capital Assets 35,558,592$ 10,548,839$ 7,175,031$ 9,028,062$ 62,310,524$
See accompanying independent auditors' report and notes to financial statements.
SCHEDULE K
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF CHANGES IN GENERAL CAPITAL ASSETS BY FUNCTION
FOR THE YEAR ENDED JUNE 30, 2014
90
General General
Capital Capital
Assets Assets
7/1/13 Additions Deletions 6/30/14
General Government 2,332,367$ -$ -$ 2,332,367$
Ambulance 219,380 - - 219,380
Fire 9,610,826 229,621 - 9,840,447
Police 9,035,134 - - 9,035,134
Highway 3,493,838 54,987 - 3,548,825
Public Works 44,463,401 - - 44,463,401
Library 12,084 - - 12,084
Recreation 5,195,722 - - 5,195,722
Health 1,070,453 - - 1,070,453
Airport 21,375,571 - - 21,375,571
City Wide 1,368,900 222,900 - 1,591,800
Storm Water Utilities 2,606,575 696,738 - 3,303,313
Water Pollution Control 14,832,820 190,992 - 15,023,812
Water Department 6,772,931 91,003 - 6,863,934
Total General Capital Assets 122,390,002 1,486,241 - 123,876,243
Less: Accumulated Depreciation (59,792,201) (1,773,518) - (61,565,719)
Net General Capital Assets 61,204,345$ (287,277)$ -$ 62,310,524$
See accompanying independent auditors' report and notes to financial statements.
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
JUNE 30, 2014
91
Federal Grantor Federal Pass Thru
Pass Through Grantor CFDA Grantor Federal
Program Title Number Number Expenditures
U.S. Agency of Transportation
Passed through Vermont Agency of Transportation:
Federal Aid Highway:
Market Street 20.205 309,310$
Staples 3rd Lane 20.205 08126-CA0241 54,987
Total Agency of Transportation 364,297
U.S. Department of Defense
Direct Program:
Military Construction 21.400 N/A -
Enviromental Protection Agency:
Direct Program:
Congressionally Mandated Projects 66.202 EM-83234901
Edward Byrne Memorial Justice Assistance 66.202 N/A -
Passed Through Vermont Enviromental Protection:
Airport Parkway Expansion/Revolving Loan 66.458 06140-AR1-067 1,643
Total Enviromental Protection Agency 1,643
Department of Homeland Security
Direct Program:
FEMA Mimic Grant 97.044 N/A 10,334
Passed Through Vermont Public Safety:
Homeland Security Program 97.067 02140-77252-106 7,611
Total Departement of Homeland Security 17,945
TOTAL FEDERAL ASSISTANCE 383,885$
CITY OF SOUTH BURLINGTON, VERMONT
NOTES TO SCHEDULE OF FEDERAL AWARDS
JUNE 30, 2014
92
1. General
The accompanying Schedule of Expenditures of Federal Awards presents the
activity of all federal award programs of the City of South Burlington, Vermont. All federal
financial assistance received is included on the schedule.
2. Basis of Accounting
The accompanying Schedule of Expenditures of Federal Awards is presented using
the accrual basis of accounting.
3. The following programs were tested as Type A program as outlined in OMB Circular
A-133.
1) 20.205 – Butler Farm SW Pond
93
INDEPENDENT AUDITORS’ 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
City Council
City of South Burlington
South Burlington, Vermont
We have audited, in accordance with generally accepted auditing standards 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, the financial statements of the governmental activities, each major fund, and the
aggregate remaining fund information of the City of South Burlington, Vermont as of and
for the year ended June 30, 2014, and the related notes to the financial statements,
which collectively comprise the City of South Burlington’s basic financial statements,
and have issued our report thereon dated October 3, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered
the City of South Burlington’s internal control over financial reporting (internal control) to
determine the audit procedures that are appropriate in the circumstances for the
purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the City of South Burlington’s internal
control Accordingly, we do not express an opinion on the effectiveness of the City of
South Burlington’s internal control.
A deficiency in internal control exists when the design or operation of a control
does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and corrected, misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the
entity’s financial statements will not be prevented, or detected and corrected on a timely
basis. A significant deficiency is a deficiency, or a combination of deficiencies, in
internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
3 Old Orchard Road, Buxton, Maine 04093
Tel: (800) 300-7708 (207) 929-4606 Fax: (207) 929-4609
www.rhrsmith.com
Proven Expertise and Integrity
94
Our consideration of internal control was for the limited purpose describ ed in the
first paragraph of this section and was not designed to identify all deficiencies in internal
control that might be material weaknesses or, significant deficiencies. Given these
limitations, during our audit we did not identify any deficiencies in internal control that we
consider to be material weaknesses. However, material weaknesses may exi st that have
not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of South
Burlington’s financial statements are free from 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 instance of
noncompliance or other matter that are required to be reported under Government Auditing
Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal
control and compliance and the results of that testing, and not to provide an opinion on the
effectiveness of the entity’s internal control or on compliance. This report is an integral
part of an audit performed in accordance with Government Auditing Standards in
considering the entity’s internal control and complian ce. Accordingly, this communication
is not suitable for any other purpose.
Buxton, Maine
Vermont Registration No. 092.0000697
October 3, 2014
95
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE
REQUIRED BY OMB CIRCULAR A-133
City Council
City of South Burlington
South Burlington, Vermont
Report on Compliance for Each Major Federal Program
We have audited the City of South Burlington, Vermont’s compliance with the types of
compliance requirements described in the OMB Circular A-133 Compliance Supplement
that could have a direct and material effect on each of the City of South Burlington’s major
federal programs for the year ended June 30, 2014. The City of South Burlington’s major
federal programs are identified in the summary of auditor’s results section of the
accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws,
regulations, contracts, and grants applicable to its federal programs.
Auditors’ Responsibility
Our responsibility is to express an opinion on compliance for each of the City of
South Burlington’s major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in accordance with
auditing standards generally accepted in the United States of America; the standards
applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could
have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the City of South Burlington’s complian ce with
those requirements and performing such other procedures as we considered necessary in
the circumstances.
In our opinion, the City of South Burlington, Vermont complied, in all material
respects, with the types of compliance requirements referred to above that could have a
direct and material effect on each of its major federal programs for the year ended June
30, 2014.
Proven Expertise and Integrity
3 Old Orchard Road, Buxton, Maine 04093
Tel: (800) 300-7708 (207) 929-4606 Fax: (207) 929-4609
www.rhrsmith.com
96
Report on Internal Control Over Compliance
Management of the City of South Burlington, Vermont is responsible for establishing
and maintaining effective internal control over compliance with the types of compliance
requirements referred to above. In planning and performing our audit of compliance, we
considered the City of South Burlington’s internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to
determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federa l program and to
test and report on internal control over compliance in accordance with OMB Circular A -
133, but not for the purpose of expressing an opinion on the effectiveness of the City of
South Burlington’s internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City of South Burlington’s internal control over
compliance.
A deficiency in internal control over compliance exists when the design or operation
of a control over compliance does not allow mana gement or employees, in the normal
course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal program on a timely
basis. A material weakness in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement
of a federal program will not be prevented, or d etected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination
of deficiencies, in internal control over compliance with a type of compliance requirement
of a federal program that is less severe than a material weakness in internal control over
compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies. However, material weaknesses may exist that have not been
identified.
The purpose of this report on internal control over compliance is solely to describe
the scope of our testing of internal control over compliance and the results of that testing
based on the requirements of OMB Circular A-133. Accordingly, this communication is not
suitable for any other purpose.
Buxton, Maine
Vermont Registration No. 092.0000697
October 3, 2014
CITY OF SOUTH BURLINGTON, VERMONT
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2014
97
Section I - Summary of Auditor’s Results
Financial Statements
Type of auditor’s report issued : Unmodified
Internal control over financial reporting:
Material weakness(es) identified? yes X no
Significant deficieny(ies) identified? yes X no
Noncompliance material to financial statements noted yes X no
Federal Awards
Internal control over major programs:
Material weakness(es) identified? yes X no
Significant deficiency(ies) identified? yes X no
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported
In accordance with section 510(a) of OMB Circular A-133? yes X no
Identification of major programs:
CFDA Numbers Name of Federal Program or Cluster
20.205 Butler Farm SW Pond
Dollar threshold used to distinguish between type A and B: $300,000
Auditee qualified as low-risk auditee? X yes _ no
Section II – Financial Statement Findings
None
Section III – Federal Awards Findings and Questioned Costs
None