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HomeMy WebLinkAboutAgenda - City Council - 02/20/2024CITY COUNCIL MEETING AGENDA FEBRUARY 20, 2024 Participation Options In Person: 180 Market Street, Main Floor, Auditorium Assistive Listening Service Devices available upon request Electronically: https://meet.goto.com/SouthBurlingtonVT/citycouncilmeeting02-20-2024 You can also dial in using your phone. (646) 749-3122 Access Code: 214-280-381 Regular Session 6:30 p.m. 1.Pledge of Allegiance (6:30 p.m.) 2.Instructions on exiting building in case of emergency and review of technology options–Jessie Baker, City Manager (6:31–6:32 p.m.) 3.Agenda Review: Additions, deletions or changes in order of agenda items (6:33–6:34 p.m.) 4.Comments and questions from the public not related to the agenda (6:35–6:45 p.m.) 5.Councilors’ Announcements and Reports on Committee assignments and City Manager’s Report (6:45–6:55 p.m.) 6.Consent Agenda: (6:55–7:00 p.m.) A.*** Consider and Sign Disbursements B.*** Approve minutes from January 8, 2024 Meeting C.*** Receive the December and January Financials D.*** Receive the Q1 and Q2 Financial Report E.*** Approve documents related to Loan RF1-354-2.0 for the Bartlett Bay Wastewater Treatment Plant Upgrade F.*** Approve a letter in support of the South Burlington Land Trust’s application for conservation funding through the Vermont Housing and Conservation Board in support of the Long Property 7.*** Warned for 7:00 PM: Hold a Second Reading / Public Hearing on a proposed Residential Rental Registry Ordinance – Steven Locke, Deputy City Manager (7:00–8:00 p.m.) 8.*** Possible action to approve the Residential Rental Registry ordinance – Steven Locke, Deputy City Manager (8:00–8:20 p.m.) 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV 9.*** Possible approval of Resolution 2024-08 establishing the fee structure and inspection cycle for the Residential Rental Registry – Steven Locke, Deputy City Manager (8:20–8:30 p.m.) 10.*** Possible approval of Resolution 2024-09 establishing the Residential Rental Registry Special Revenue Fund – Martha Machar, Finance Director (8:30-8:35 p.m.) 11.Consider approval of amendments to the collective bargaining agreement with the South Burlington Career Fire Fighters Association Local 3671 – Jessie Baker, City Manager (8:35–8:50 p.m.) a.Consider entering executive session for the purposes of discussing labor relations agreements with employees and specifically the collective bargaining agreement with the South Burlington Career Fire Fighters Association Local 3671(1 V.S.A. §313(a)(1)(B)) 12.*** Receive and accept the FY23 Audit from RHR Smith – Miranda MacDonald, RHR Smith & Company and Martha Machar, Finance Director (8:50–9:20 p.m.) 13.*** Approve the TIF bond documents for the final TIF debt as previously approved by the voters – Ilona Blanchard, Community Development Director (9:20–9:30 p.m.) 14.*** Discussion of a Growth Management Plan and provide direction to staff – Jessie Baker, City Manager, and Paul Conner, Planning & Zoning Director (9:30–9:45 p.m.) 15.*** Receive the FY24 Policy Priorities & Strategies Report #2 – Jessie Baker, City Manager (9:45– 9:55 p.m.) 16.Provide a summary to the public of the City Manager's annual evaluation – Helen Riehle, Council Chair (9:55–10:05 p.m.) 17.*** Convene as the South Burlington Liquor Control Commission to consider; Delta Hotels by Marriott Burlington, Outside Consumption Permit; Homewood Suites, First Class Restaurant/Bar & Second Class License; Eagles, Fraternal Order Of Aerie #793 First Class Club & Third Class Club License & Outside Consumption Permits; Gracey’s Liquor Store, Second Class Liquor & Tobacco License & Tobacco Substitute Endorsement; Gracey’s Store, Second Class Liquor & Tobacco License & Tobacco Substitute Endorsement; Simon’s Store & Deli, Second Class Liquor & Tobacco License & Tobacco Substitute Endorsement; Sugarsnap, First Class Commercial Caterer & Third Class Commercial Kitchen; Walgreens #11526, Second Class Liquor & Tobacco License; Walgreens #17447, Tobacco License - (10:05-10:10 p.m.) 18.Other Business (10:10-10:20 p.m.) 19.Adjourn (10:20 p.m.) Respectfully submitted: Jessie Baker City Manager ***Attachments included Champlain Water District Check/Voucher Register - Check Report by Fund From 2/21/2024 Through 2/21/2024 Check Date Check Number Vendor Name Invoice Description Check Amount Invoice Number 2/21/2024 4711 Aldrich & Elliott, PC Project 23022.002 20,575.50 81912 2/21/2024 4712 Champlain Water District - Retail Retail to SBWD - January 2024 59,890.53 SBWD-406 2/21/2024 4713 Champlain Water District Water Consumption - Jan 2024 144,703.54 SBWD WTR CONSUMP 2/21/2024 Champlain Water District January 2024 CWD to SBWD 636.28 SBWD-399 2/21/2024 4714 E.J. Prescott Paint and Flags 119.21 6283255 2/21/2024 E.J. Prescott Break Trailer Restock 68.06 6285312 2/21/2024 E.J. Prescott Air Guard Meter Changeout 217.88 6285807 2/21/2024 4715 Frank W. Whitcomb Construction 7 Victory Drive - Water Break - Crushed Stone 647.53 90023-00019400 2/21/2024 4716 MSK Engineers Project 1460-001 21,770.94 16494 2/21/2024 4717 Office Essentials of Vermont File Pockets 39.76 39919 2/21/2024 Office Essentials of Vermont Date Paid Stamp 27.47 39943 2/21/2024 4718 SAC Fasteners Inc.8 Meter Replacement for Air Guard 40.20 60680 2/21/2024 4719 South Burlington Ace, Inc.Fasteners 18.27 858853/3 2/21/2024 South Burlington Ace, Inc.Hydrant Tag S Hooks 15.98 858935/3 2/21/2024 4720 South Burlington Sewer Department January 2024 Sewer Billings 358,403.78 SEWER 013124 2/21/2024 4721 South Burlington Stormwater Department January 2024 Stormwater Fees 305,195.79 STORM 013124 2/21/2024 4722 Ti-Sales, Inc.Meters 5,480.20 INV0166556 2/21/2024 4723 USPS Postage Replenishment 7,500.00 POSTAGE REPLENISH Total 70 - South Burlington Water Department 925,350.92 Report Total 925,350.92 70 - South Burlington Water Department SOUTH BURLINGTON CITY COUNCIL Date: 2/14/2024 9:58:15 AM Page: 1 PAGE 1 CITY COUNCIL January 8, 2024 The South Burlington City Council held a regular meeting on Monday, 8 January 2024, at 6:30 p.m., in the Auditorium, 180 Market Street, and by Go to Meeting remote participation. MEMBERS PRESENT: H. Riehle, Chair; M. Emery, T. Barritt, A. Chalnick, L. Kupferman ALSO PRESENT: J. Baker, City Manager; Chief S. Locke, Deputy City Manager; C. McNeill, City Attorney; M. Machar, Finance Officer; V. Nichols, Superintendent of Schools; K. Bailey, C. Tillinghast, School Board; T. Jarvis, School District; R. Doyle, M. Mittag, B. Britt, E. Fitzgerald, G. Silverstein, M. Simoneau, B. Haselton, D. Albrecht 1. Instructions on exiting building in case of emergency and review of technology option: Ms. Baker provided instructions on the emergency exit from the building and reviewed technology options. 2.Additions, deletions or changes in the order of Agenda items: No changes were made to the agenda. 3.Comments and questions from the public not related to the agenda: There were no public comments or questions. 4.Announcements and City Manager’s Report: Council members reported on recent meeting and events they had attended. Ms. Baker: The first running of the South Burlington Running Club occurred on Saturday. Twelve people attended, 10 of whom had never known each other. This will be a weekly event, Saturday mornings, 8 a.m. Chief Burke testified at the State Legislature regarding the Retail Theft bill. There will be a Public Safety legislative forum on 15 February at 5:30 p.m. in the Community Library. 5.Consent Agenda: a.Approve and Sign Disbursements CITY COUNCIL JANUARY 8, 2024 | PAGE 2 Ms. Emery moved to approve the Consent Agenda as presented. Mr. Barritt seconded. Motion passed unanimously. 6. Hold a Public Hearing on City Plan 2024: Mr. Conner said this is the continuation of the public hearing begun last week. The city has received a few additional comments. Mr. Barritt moved to reopen the public hearing. Ms. Emery seconded. Motion passed unanimously. The following public comments were made: Mr. Albrecht: He felt the document was well-researched, particularly with a good description of each of the city’s neighborhoods. It was also good to see that some of the “tweaks” he had suggested had been incorporated. He still disagrees with the stating of climate resilience as an “overriding objective” of the plan. He felt this contradicts the process the public was presented with. It was never suggested that one goal was more important than any of the others or should outweigh the others. He was also concerned that the plan puts all the city’s growth in a few areas (e.g., Shelburne Road corridor, City Center, etc.), with portions of the city to be contrary to good growth with large lots, etc. It was frustrating for him to see those sections of the city exempt from the goals of the City Plan. In low residential areas, there is a “desert of only residential” with fewer people living within walking distance of services or each other. He felt there should be nodes of small commercial so people don’t have to get in their cars to “buy a bagel.” This stands out as an inconsistency and a relic of bad planning. Mr. Mittag: Spoke in support of the “overriding” statement which he said was important in light of an unprecedented existential threat. He said there is a difference between a policy and other types of decisions, and this statement related to what the City Council does. Ms. Louisos: Most of Mr. Mittag’s points speak for the whole Planning Commission. She noted that in July the Commission put out a full working draft and received public input. Following that, they did make all 4 goals equal with climate as an “overreaching goal.” Mr. Doyle: What is missing from the Plan’s goals are design standards relating to bikes and pedestrians. Parts of Market Street are not comfortable for bikers and walkers. Design standards are particularly important around construction sites where people/bikers are forced into the road because there isn’t room for them on the sidewalks. This is mentioned in the plan but does not appear as a goal. “Medians” should also be added to that section. Mr. Doyle noted that federal law allows design standards even if their state prohibits them. He cited “Dutch style” intersections as very safe and noted that they are used in Canada. Mr. Doyle also spoke against the paragraph regarding making Williston Road 2 lanes. He cited the 28,000 vehicles per day that use the road. No further public comment was presented. 7. City Council discussion of City Plan 2024 and possibly warn a Public Hearing for 29 January 2024 at 7:00 p.m.: CITY COUNCIL JANUARY 8, 2024 | PAGE 3 Mr. Barritt moved to close the public hearing. Mr. Kupferman seconded. Motion passed unanimously. Mr. Barritt suggested modified language for the “overriding” statement as follows: The guiding principle of this plan is to make policy decision through the lens of climate change, factoring in other important principles and goals in our diverse community.” Ms. Emery agreed and said “overriding” was too much.” She added that the city needs to be aggressive, but not overly aggressive, and should not set up “flash points.” Mr. Conner suggested that since the word “principle” is used, to change the heading of the next section to “Principles” instead of “Guiding Principles.” Mr. Barritt suggested “Key Principles.” Members preferred that choice. Mr. Barritt then moved to approve his suggested sentence and to change the title of the following section to “Key Principles.” Ms. Emery seconded. Motion passed unanimously. Ms. Emery cited a resident’s concern regarding Airport emissions. The resident suggested adding the words “other than aircraft” after the word emission in that section. Mr. Chalnick said he didn’t find the original language misleading. Mr. Kupferman said this is a high-level planning tool and asked if there is room to add Mr. Doyle’s design standards concerns to the goals. Ms. Riehle said she wasn’t sure how much “into the weeds” the Plan should get. Ms. Louisos said there are Public Works standards that the Commission is actively working on. Mr. Doyle said NACTO has some great plans, and what is being done on the city level doesn’t come close to that. He noted that 22% of people in Montreal bike to work because the city has designed space that makes it safe to do so. Ms. Riehle suggested asking the Bike/Ped Committee how deep they have delved into this. Mr. Barritt said he felt design standards belong with the LDRs, not in the City Plan. Ms. Emery asked for confirmation that there is infill allowed in all neighborhoods where there is municipal water and sewer. Mr. Conner confirmed this and said the only place left out is the Conservation PUD. Mr. Barritt said he appreciated Mr. Albrecht’s comments, but he noted that the Red Barn has grocery essentials next to Tilley Drive and fills a need. Mr. Chalnick added there is also one in South Village. Mr. Conner noted that on p. 80 of the Plan, a sentence reads “…Commercial with Supporting Uses.” He noted that the map uses the language “…Commercial-Industrial with Supporting Uses.” He recommended using the latter language in both places. Mr. Conner also said that staff will take note of Mr. Britt’s typo indications. Mr. Barritt then moved to make the agreed upon changes to the draft City Plan 2024 and to warn a third public hearing for 29 January 2024 at 7:00 p.m. Ms. Emery seconded. Motion passed unanimously. CITY COUNCIL JANUARY 8, 2024 | PAGE 4 8. Vermont Land Trust/Bread & Butter Farm conservation project at Auclair Farm: Review and approve Non-Development Agreement (NDA) and City Right of First Refusal (ROFR) for area excluded from conservation on Parcel B of the former Auclair Farm property, in line with prior City Council decision to release pre-approved funds on condition of City Council approval of NDA and ROFR: Mr. Conner said the City is getting to the “finish line” with the Auclair property. Lot B is the largest of the properties. It is the main focus of the City’s investment. A conservation easement is being pursued for all but 10 acres which are to be used for non-conservation purposes. The owners of the full parcel are looking to split their interests. Vermont Land Trust will own all but the 10 northern acres. The land can be divided without a full subdivision hearing at the DRB; however, any activity on either piece would have to go to the DRB for subdivision. Mr. McNeill added that at this time, the property can be used only for agriculture or forestry purposes. Ms. Riehle asked whether the 10 acres is the place where there was talk about housing for farm workers. Mr. Conner said it is. If there is ever a plan to do something else with that piece, the city would have the right of first refusal. Mr. Barritt asked whether a survey is required for this. Mr. McNeill said not at this point. Ms. Haselton of the Vermont Land Trust said the land has already been surveyed. The 13.41 acre exclusion cannot be changed. A new non-profit will be the future owner of these pieces. Mr. Simoneau said he and others are not fans of this deal. The city has invested over $900,000. of taxpayer money to get more conserved land. It was supposed to have been for agriculture. Water and sewer are not far away, so there could have been hundreds of homes. Now all the taxpayers get are a few walking trails. All the literature says the land is not good for agricultural purposes. The 200-acre site across the road could have had some housing at $300,000 per lot. The city then could have purchased the Long property. Just a few houses on a property would meet two objectives: some housing and some conservation, and the money could be used over and over again. Mr. Simoneau hoped the Council will think about that with the Long property. Mr. Barritt said this is what the voters said when they agreed to the Open Space Plan. Ms. Emery moved to approve the Non-Development Agreement and City Right of First Refusal for area excluded from conservation on Parcel B of the former Auclair Farm property in line with prior City Council decision to release pre-approved funds on condition of City Council approval of the Non-Development Agreement and City Right of First Refusal. Mr. Barritt seconded. Motion passed unanimously. 9. Initial Update on the FY25 School Budget and Act 127 and Common Level of Appraisal (CLA) implications: Ms. Riehle cited the need for a lot of discussion regarding the gravity of public school funding as the consequences for South Burlington are dire. CITY COUNCIL JANUARY 8, 2024 | PAGE 5 Superintendent Nichols said the figures she is presenting could be the ones brought to the voters. Act 127 and the CLA comprise the new funding formula which has consequences for the city. She hoped the Council and School District could work together on these issues. Supt. Nichols said the new formula results in an increase to the homestead tax rate of 18.27%. This is despite a 5% cap on the CLA. Prior to the impact of the CLA, the tax increase would have been 5%. Supt. Nichols also noted that 60% of South Burlington homestead owners pay a lower rate by receiving a property tax credit based on household income and home value. If the budget does not pass in March, the budget would have to be reduced by $6,000,000, which would still result in a tax rate of 14.57%. If they decrease the budget to $64,000,000, there would be an 18.17% tax increase. Supt. Nichols said Act 127 was meant to increase equity statewide. With the new formula, districts had to be below a certain percentage increase per equalized pupil (which is now calculated differently). The School District achieved, with cuts, a modest increase. Even with reductions, pre-CLA cap, would have been a 28% tax increase. Supt. Nichols stressed that should nothing change, when we get to FY30, she couldn’t see how they could keep the schools open. Supt. Nichols then explained the CLA implications. Following the 2021 reappraisal, the CLA was at 100%. Last year, it was at 92%. It has dropped 11% this year to about 82%. Supt. Nichols noted that 80% of the school budget is workforce, including health care. There would have to be serious cuts in staffing by 2030 which is very concerning. She also noted that the budget increase is 10.66% of which 8% is staff related. There is also an increase in revenues of 4.11%. In a meeting with city staff, 4 questions arose: #1. How can the City and School Board partner to bring forward budgets the community can support? #2. If the education funding formula doesn’t change and CLAs continue to decrease, how can schools support development? #3. What impacts will reduced quality of schools have on home values in South Burlington? #4. What steps can be taken by the governing bodies to partner with Legislators? Supt. Nichols noted that most communities in Chittenden County are facing the same issues. Ms. Emery said she would support the budget and encourage others to do so as well. She asked if the budget passes, would the city be “around the corner.” Supt. Nichols said there won’t be a 5% CLA cap in FY2030, and should nothing else change by then, they would be at 30% tax increase or drastically reducing what schools provide (e.g., building, art, sports, CITY COUNCIL JANUARY 8, 2024 | PAGE 6 etc.). If the CLA continues to drop, it would make the system more unpredictable and disadvantaged. Supt. Nichols said that to get to a 9.9% budget, they would have to reduce $9,000,000 in spending (e.g., all sports, arts, world languages, non-student facing staff, etc.). Ms. Baker explained the CLA calculation. She said that what has happened involves the combined ratio of COVID years. If the city doesn’t develop more, the CLA will continue to go down. Mr. Kupferman said this is the result of well-intended legislation. Ms. Bailey said it is a systems issue with the formula that is not working for South Burlington. People need homes, and there aren’t many in South Burlington. Supt. Nichols said the expectation is for continued prosperity in South Burlington with higher home prices which will result in the CLA continuing to go down. She also expressed gratitude to the South Burlington legislative delegation, though she did not expect overnight changes. The hope is for a CLA cap in the future which would have a significant impact on the city. She noted that there will be continuing testimony in Montpelier tomorrow. It was noted that a reappraisal to address the CLA issue is not viable as there are communities in the state on a long waiting list for reappraisals. Ms. Riehle suggested a joint letter regarding the CLA. Supt. Nichols said this is a crisis, and the City Council speaking to a level of concern would be meaningful input. She stressed that this is the week decisions are going to be made. Any form of communication, individual or as a body, would matter. She was hopeful changes could be made. Mr. Chalnick asked if it matters in FY30 what we spend this year. Supt. Nichols said it does not. Mr. Chalnick asked why not go to the $71,000,000, which doesn’t increase the tax rate, and “harbor” some resources. Supt. Nichols said that could bankrupt the yield because the money has to come from somewhere. Ms. Riehle asked if it would be feasible to pay off debt. Supt. Nichols said 91% of the debt on the ZEMs is being paid for by impact fees. Supt. Nichols noted that the City of Burlington is on the receiving end of Act 127; however they still have the CLA issue. She believed the purpose of Act 127 was to increase equity statewide. Mr. Barritt asked why the assessed value of a home isn’t automatically increased when a sale takes place. Ms. Baker said that is illegal at this time. There is another bill looking at the assessment process. It is very divisive at the VLCT table. This should be a good time for the city to look at the appraisal system. Mr. Chalnick said they should put in for a change to do what Mr. Barritt suggests. Ms. Baker said one huge challenge is that there isn’t good information on how legislation affects communities. The state needs to be accountable on what the CLA and Act 127 are CITY COUNCIL JANUARY 8, 2024 | PAGE 7 doing to individual communities. If we erode the vibrancy of a community, it will have a statewide impact. Supt. Nichols suggested two different letters, one of which would include Ms. Baker’s comments. Mr. Riehle suggested one joint letter saying the Council agrees there is a crisis and one letter from the Council from the municipal point of view. Other members agreed. Ms. Baker stressed that the joint letter needs to go out this week. The Council could then do its own letter and suggest some ideas. 10.Other Business: No other business was presented. As there was no further business to come before the Council Ms. Emery moved to adjourn. Mr. Barritt seconded. Motion passed unanimously. The meeting was adjourned at 9:42 p.m. _________________________________ Clerk City of South Burlington General Ledger Expenditure Report - GENERAL FUND Current Year Period 6 December % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 6 Dec GENERAL GOVERNMENT EXP. CITY COUNCIL 63,750.00$ 5,983.17$ 9.39%57,766.83$ 115.00$ ADMINISTRATIVE INSURANCE 896,056.52$ 259,449.77$ 28.95%636,606.75$ 52,482.10$ GF INSURANCE 682,365.73$ 346,341.39$ 50.76%336,024.34$ -$ CITY MANAGER 523,229.45$ 167,686.15$ 32.05%355,543.30$ 25,493.82$ Total LEGAL/ACCOUNTING ACTUARY 366,115.31$ 168,151.61$ 45.93%197,963.70$ 34,996.18$ ADMINISTRATIVE SERVICES 1,242,115.17$ 415,650.47$ 33.46%826,464.70$ 72,517.69$ INFORMATION TECHNOLOGY 584,994.68$ 203,612.35$ 34.81%381,382.33$ 32,035.45$ CITY CLERK 464,169.43$ 219,123.84$ 47.21%245,045.59$ 28,011.26$ PHYSICAL PLANT 875,044.04$ 387,783.40$ 44.32%487,260.64$ 86,120.53$ ASSESSING/TAX/FINANCE 723,874.07$ 405,485.06$ 56.02%318,389.01$ 41,743.40$ PLANNING/DESIGN REVIEW 918,730.97$ 312,693.43$ 34.04%606,037.54$ 49,360.91$ TO CAPITAL/RESERVE FUNDS 933,200.00$ -$ 0.00%933,200.00$ -$ Total GENERAL GOVERNMENT EXP.8,273,645.37$ 2,891,960.64$ 34.95%5,381,684.73$ 422,876.34$ PUBLIC SAFETY FIRE DEPARTMENT 5,994,396.69$ 2,269,604.14$ 37.86%3,724,792.55$ 350,538.99$ POLICE DEPARTMENT 7,255,230.46$ 3,047,521.85$ 42.00%4,207,708.61$ 450,832.14$ Total PUBLIC SAFETY 13,249,627.15$ 5,317,125.99$ 40.13%7,932,501.16$ 801,371.13$ STREETS & HIGHWAYS HIGHWAY DEPARTMENT 4,575,586.04$ 1,967,757.74$ 43.01%2,607,828.30$ (501,621.32)$ Total STREETS & HIGHWAYS 4,575,586.04$ 1,967,757.74$ 43.01%2,607,828.30$ (501,621.32)$ CULTURE AND RECREATION RECREATION ADMINISTRATIO 527,613.70$ 156,335.78$ 29.63%371,277.92$ 27,904.89$ PROGRAMS 146,000.00$ 69,675.18$ 47.72%76,324.82$ 3,460.62$ RED ROCKS PARK -$ 64.59$ 00.00%(64.59)$ 64.59$ FACILITIES 175,056.25$ 26,356.89$ 15.06%148,699.36$ 8,333.45$ SENIOR PROGRAMS 38,500.00$ 11,492.65$ 29.85%27,007.35$ 2,774.70$ PUBLIC LIBRARY 1,045,028.63$ 458,642.92$ 43.89%586,385.71$ 81,251.19$ CAPITAL/PARK MAINTENANCE 726,434.93$ 243,828.33$ 33.57%482,606.60$ 33,105.87$ Total CULTURE AND RECREATION 2,658,633.51$ 966,396.34$ 36.35%1,692,237.17$ 156,895.31$ OTHER ENTITIES OTHER OPERATING ENTITIES 937,809.97$ 456,999.68$ 48.73%480,810.29$ 82,285.50$ Total OTHER ENTITIES 937,809.97$ 456,999.68$ 48.73%480,810.29$ 82,285.50$ CURRENT PRINCIPAL BONDS 1,211,203.30$ 625,021.00$ 51.60%586,182.30$ -$ CURRENT INTEREST BONDS 233,813.00$ 124,188.59$ 53.11%109,624.41$ -$ Total GENERAL FUND 31,140,318.34$ 12,349,449.98$ 39.66%18,790,868.36$ 961,806.96$ City of South Burlington General Ledger Expenditure Report - ENTERPRISE FUND/W.P.C. Current Year Period 6 Dec % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 6 Dec W/POLLUTION CONTROL EXPS. Salaries-Permanent 700,693.02$ 348,006.81$ 49.67%352,686.21$ 73,228.39$ Payment to Highway-wages 278,354.89$ -$ 0.00%278,354.89$ -$ Leave Time Turn-In 7,000.00$ -$ 0.00%7,000.00$ -$ Salaries-Overtime 75,000.00$ 45,783.31$ 61.04%29,216.69$ 7,935.52$ Payment to Sick Bank Fund 6,677.02$ -$ 0.00%6,677.02$ -$ Payroll Service 1,692.27$ -$ 0.00%1,692.27$ -$ PAFO Certification 9,000.00$ 5,481.40$ 60.90%3,518.60$ 876.88$ Sick Bank Payouts 10,000.00$ -$ 0.00%10,000.00$ -$ Fringe Benefits 9,300.69$ 300.00$ 3.23%9,000.69$ -$ FICA/Medicare 60,794.02$ 31,276.94$ 51.45%29,517.08$ 6,336.88$ Payment to Highway-FICA/M 33,289.64$ -$ 0.00%33,289.64$ -$ Vision Plan 779.69$ 344.65$ 44.20%435.04$ 58.64$ Disability Insurance 2,139.12$ 1,130.00$ 52.83%1,009.12$ 226.00$ Long Term Disability Insu 4,060.42$ 1,634.90$ 40.26%2,425.52$ 326.98$ Group Health Insurance 131,970.16$ 55,721.02$ 42.22%76,249.14$ 10,058.07$ Group Life Insurance 2,782.32$ 380.00$ 13.66%2,402.32$ 76.00$ Group Dental Insurance 7,409.53$ 3,073.88$ 41.49%4,335.65$ 606.75$ Pension 94,710.61$ 26,123.98$ 27.58%68,586.63$ -$ ICMA Match 30,067.64$ 11,499.59$ 38.25%18,568.05$ 1,907.58$ Pension Note Payment 39,075.00$ -$ 0.00%39,075.00$ -$ Office Supplies 2,100.00$ 1,165.48$ 55.50%934.52$ -$ Plant Supplies 125,000.00$ 14,412.78$ 11.53%110,587.22$ 2,200.94$ Polymer 120,000.00$ 45,548.99$ 37.96%74,451.01$ -$ Sewer Line Maint/Supplies 27,000.00$ 4,829.65$ 17.89%22,170.35$ 296.39$ Pumping Station Supplies 18,000.00$ 15,754.35$ 87.52%2,245.65$ 2,333.67$ Laboratory Supplies 14,500.00$ 6,842.53$ 47.19%7,657.47$ 384.47$ Caustic Soda and Lime 175,000.00$ 67,521.04$ 38.58%107,478.96$ 11,632.50$ Alum 280,000.00$ 164,218.95$ 58.65%115,781.05$ 15,640.34$ Water-Airport-B/B-Pump 1,800.00$ 837.95$ 46.55%962.05$ 257.09$ Generator Preventive Main 10,000.00$ 306.00$ 3.06%9,694.00$ -$ Clothing Supplies 4,250.00$ 2,500.01$ 58.82%1,749.99$ 830.99$ Truck Parts 12,500.00$ 2,661.31$ 21.29%9,838.69$ 198.33$ Gas - Diesel Fuel - Oil 13,000.00$ 10,152.94$ 78.10%2,847.06$ 1,695.50$ Fuel - Airport Parkway 65,000.00$ 21,488.30$ 33.06%43,511.70$ 4,994.31$ Fuel - Bartlett Bay 6,500.00$ 722.06$ 11.11%5,777.94$ 493.64$ Telephone and Alarms 6,500.00$ 6,109.01$ 93.98%390.99$ 812.46$ Memberships/Dues 39,607.80$ 18,177.14$ 45.89%21,430.66$ -$ Discharge Permits 15,000.00$ 3,750.00$ 25.00%11,250.00$ -$ Workers Comp Insurance 18,729.67$ 9,457.62$ 50.50%9,272.05$ -$ Property Insurance 61,598.06$ 33,205.75$ 53.91%28,392.31$ -$ Unemployment Insurance 933.57$ -$ 0.00%933.57$ -$ Safety 5,500.00$ 6,212.58$ 12.96%(712.58)$ 1,336.61$ Billing Payment to CWD 73,000.00$ -$ 0.00%73,000.00$ -$ Soil/Sludge Management 140,000.00$ 72,235.49$ 51.60%67,764.51$ 12,170.89$ Landfill Fees 1,000.00$ -$ 0.00%1,000.00$ -$ Building Improvements 7,500.00$ -$ 0.00%7,500.00$ -$ Pumps Replacements 55,000.00$ 20,400.00$ 37.09%34,600.00$ -$ Pumps Replacements 43,000.00$ 13,768.98$ 32.02%29,231.02$ -$ Marathon Health ctr cost 22,031.39$ -$ 0.00%22,031.39$ -$ HVAC Maintenance 38,000.00$ 11,467.87$ 30.18%26,532.13$ -$ Auditing 3,773.86$ -$ 0.00%3,773.86$ -$ Engineering/Consulting 18,000.00$ 516.00$ 2.87%17,484.00$ -$ Landfill Engineering 17,500.00$ 25,129.14$ 43.60%(7,629.14)$ 11,056.68$ Payment to SW for GIS 12,635.00$ -$ 0.00%12,635.00$ -$ Administrative Services 145,281.42$ -$ 0.00%145,281.42$ -$ Burlington Sewer Lines 2,000.00$ 447.69$ 22.38%1,552.31$ -$ Travel & Training 6,500.00$ 2,965.02$ 45.62%3,534.98$ -$ Utilities-Pumping Station 105,000.00$ 42,062.33$ 40.06%62,937.67$ 9,918.46$ Utilities--L/Fill Station 900.00$ -$ 0.00%900.00$ -$ Electric-Airport Parkway 210,000.00$ 79,145.60$ 37.69%130,854.40$ 18,629.34$ Electric-Bartlett Bay 150,000.00$ 57,370.77$ 38.25%92,629.23$ 20,334.45$ Replacement-Vehicles 290,000.00$ 55,076.13$ 18.99%234,923.87$ -$ Pump Repairs -$ 21,261.00$ 00.00%(21,261.00)$ -$ PMT to SW for Hadley Loan 73,648.00$ -$ 0.00%73,648.00$ -$ Bartlett Bay Upgrades 600,000.00$ 14,370.50$ 2.40%585,629.50$ 11,308.50$ Capital Projects - CIP 350,000.00$ 1,722.59$ 0.49%348,277.41$ -$ Loan for Hadley Sewer 112,000.00$ 111,786.54$ 99.81%213.46$ 111,786.54$ Loan for Airport Parkway 970,000.00$ -$ 0.00%970,000.00$ -$ Total ENTERPRISE FUND/W.P.C.5,974,084.81$ 1,496,356.57$ 25.05%4,477,728.24$ 339,949.79$ City of South Burlington General Ledger Expenditure Report - STORM WATER UTILITIES Current Year Period 6 Dec % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 6 Dec S/WATER UTILITIES EXPS Salaries-Permanent 458,034.55$ 257,140.04$ 56.14%200,894.51$ 49,844.83$ Payment to Highway-Wages 78,215.00$ -$ 0.00%78,215.00$ -$ Salaries-Overtime 23,000.00$ 7,892.85$ 34.32%15,107.15$ 4,345.84$ Payment to Sick Bank Fund 5,900.62$ -$ 0.00%5,900.62$ -$ Payroll Service 1,480.75$ -$ 0.00%1,480.75$ -$ Fringe Benefits 6,387.00$ 300.00$ 4.70%6,087.00$ -$ FICA/Medicare 36,799.14$ 20,968.08$ 56.98%15,831.06$ 4,251.35$ Vision Plan 631.39$ 191.97$ 30.40%439.42$ 30.91$ Disability Income Insuran 4,574.64$ 2,418.03$ 52.86%2,156.61$ 483.60$ Group Health Insurance 113,897.30$ 46,104.37$ 40.48%67,792.93$ 8,375.01$ Health Insurance FICA 459.00$ -$ 0.00%459.00$ -$ Group Life Insurance 1,906.98$ 332.50$ 17.44%1,574.48$ 66.50$ Group Dental Insurance 5,718.61$ 2,870.30$ 50.19%2,848.31$ 574.06$ Pension 88,872.21$ 10,605.54$ 11.93%78,266.67$ -$ ICMA Match 23,002.64$ 14,284.35$ 62.10%8,718.29$ 2,307.30$ Pension Note Payment 26,910.00$ -$ 0.00%26,910.00$ -$ Office Supplies 1,500.00$ 1,351.32$ 90.09%148.68$ 347.13$ Small Equipment/Tools 3,000.00$ 3,135.84$ 104.53%(135.84)$ -$ Uniforms/Supplies 6,500.00$ 3,699.06$ 56.91%2,800.94$ 453.93$ Gasoline 2,500.00$ 1,552.09$ 62.08%947.91$ 398.39$ Oil 275.00$ 332.16$ 120.79%(57.16)$ -$ Diesel Fuel 7,500.00$ 4,909.12$ 65.45%2,590.88$ 81.59$ Permit Requirement-Educat 7,000.00$ 7,000.00$ 100.00%-$ -$ Telephone 2,000.00$ 1,226.55$ 61.33%773.45$ 65.20$ Membership/Dues 600.00$ -$ 0.00%600.00$ -$ Discharge Permits Renewal 24,000.00$ 14,776.00$ 61.57%9,224.00$ -$ Workers Comp Insurance 16,551.80$ 8,357.90$ 50.50%8,193.90$ -$ Property Insurance 14,245.09$ 7,679.34$ 53.91%6,565.75$ -$ Unemployment Insurance 933.57$ -$ 0.00%933.57$ -$ GIS-Fees/Software 75,000.00$ 11,144.03$ 14.86%63,855.97$ 638.07$ Sediment & Depris Disposa 200.00$ -$ 0.00%200.00$ -$ Water Quality Monitoring 15,000.00$ 9,789.04$ 65.26%5,210.96$ 1,353.88$ Building/Grounds Maint 200.00$ -$ 0.00%200.00$ -$ Reimb Highway Benefit 33,289.64$ -$ 0.00%33,289.64$ -$ Marathon Health ctr cost 25,178.73$ -$ 0.00%25,178.73$ -$ Vehicle Maintenance 15,000.00$ 13,786.66$ 91.91%1,213.34$ 574.36$ Storm System Maint Materi 100,000.00$ 11,293.70$ 11.29%88,706.30$ 4,786.54$ Printing 100.00$ -$ 0.00%100.00$ -$ Legal Services 20,000.00$ -$ 0.00%20,000.00$ -$ To GF-Audit and Actuary 4,287.21$ -$ 0.00%4,287.21$ -$ Engineering-Watershed 35,000.00$ -$ 0.00%35,000.00$ -$ Billing Payment CWD 73,000.00$ 35,000.00$ 47.95%38,000.00$ 35,000.00$ Office Furniture/Equipmen 1,000.00$ -$ 0.00%1,000.00$ -$ Office Equipment Maintena 2,500.00$ 26.89$ 1.08%2,473.11$ -$ Equipment Rental 250.00$ -$ 0.00%250.00$ -$ Administrative Services 66,746.24$ -$ 0.00%66,746.24$ -$ Conference/Training Expen 8,000.00$ 1,287.50$ 16.09%6,712.50$ -$ S/W Bldg Utilities 3,500.00$ 1,039.71$ 29.71%2,460.29$ 262.11$ Stormwater Pumps Electric 300.00$ 121.82$ 40.61%178.18$ 27.77$ Flow Restoration Plan Ana 5,000.00$ -$ 0.00%5,000.00$ -$ Vehicles/Equipment 745,000.00$ 261,997.83$ 35.17%483,002.17$ -$ Stormwater Capital Projec 2,005,000.00$ 357,327.25$ 17.82%1,647,672.75$ 30,236.49$ Total STORM WATER UTILITIES 4,195,947.11$ 1,119,941.84$ 26.69%3,076,005.27$ 144,504.86$ City of South Burlington General Ledger Revenue Report - GENERAL FUND Current Year Period 6 December Estimated Received % Budget Uncollected FY-23/24 MTD Account Revenue To Date Received Balance Pd 6 Dec TAX REVENUE TAX REVENUE 19,604,298.92$ (13,846,567.83)$ 70.63%5,757,731.09$ (196,890.85)$ LOCAL OPTION TAXES 4,850,000.00$ (2,015,676.89)$ 41.56%2,834,323.11$ -$ Total TAX REVENUE 24,454,298.92$ (15,862,244.72)$ 64.86%8,592,054.20$ (196,890.85)$ INTEREST/PENALTY ON TAX 423,500.00$ (188,941.24)$ 44.61%234,558.76$ (2,220.90)$ Other Health Services 267,346.40$ (22,606.22)$ 8.46%244,740.18$ -$ CITY MANAGER 1,842,326.56$ (745,098.79)$ 40.44%1,097,227.77$ (136,285.59)$ CITY CLERK 351,000.00$ (110,883.63)$ 31.59%240,116.37$ (16,229.50)$ PLANNING 561,100.00$ (269,146.37)$ 47.97%291,953.63$ (31,473.07)$ FIRE DEPARTMENT 799,000.00$ (671,621.18)$ 84.06%127,378.82$ (58,413.64)$ AMBULANCE 990,000.00$ (590,436.75)$ 59.64%399,563.25$ (102,752.49)$ POLICE DEPARTMENT 277,150.00$ (42,333.34)$ 15.27%234,816.66$ (1,909.12)$ HIGHWAY DEPARTMENT 1,014,896.45$ (369,623.82)$ 36.42%645,272.63$ (21,451.74)$ Senior Programs 26,650.00$ (18,231.00)$ 68.41%8,419.00$ (2,288.00)$ SPECIAL ACTIVITIES 125,000.00$ (83,936.00)$ 67.15%41,064.00$ (4,241.00)$ PUBLIC LIBRARY 8,050.00$ (9,902.14)$ 23.01%(1,852.14)$ (1,232.30)$ Total Departments 6,686,019.41$ (3,122,760.48)$ 44.61%3,563,258.93$ (378,497.35)$ Total GENERAL FUND 31,140,318.33$ (18,985,005.20)$ 60.97%12,155,313.13$ (575,388.20)$ City of South Burlington General Ledger Revenue Report - ENTERPRISE FUND/W.P.C. Current Year Period 6 December Estimated Received % Budget Uncollected FY-23/24 MTD Account Revenue To Date Received Balance Pd 6 Dec CHARGES FOR SERVICES W.P.C. User Fees 4,113,150.00$ (2,124,531.98)$ 51.65%1,988,618.02$ (443,326.11)$ Sewer Septage Revenue 23,000.00$ (19,119.50)$ 83.13%3,880.50$ (5,058.00)$ Connection Fees 582,800.00$ (689,422.78)$ 118.29%(106,622.78)$ (44,029.68)$ Enviromental Impact -$ (4,030.00)$ 100.00%(4,030.00)$ -$ Total CHARGES FOR SERVICES 4,718,950.00$ (2,837,104.26)$ 60.12%1,881,845.74$ (492,413.79)$ BOND AND LOAN PROCEEDS Colchester A/P Pkwy Pm 742,310.00$ -$ 0.00%742,310.00$ -$ Total BOND AND LOAN PROCEEDS 742,310.00$ -$ 0.00%742,310.00$ -$ MISCELLANEOUS Miscellaneous Rev.-W.P 10,000.00$ (28,174.03)$ 281.74%(18,174.03)$ -$ Reserve Fund Transfer 502,824.79$ -$ 0.00%502,824.79$ -$ Total MISCELLANEOUS 512,824.79$ (28,174.03)$ 5.49%484,650.76$ -$ Total ENTERPRISE FUND/W.P.C.5,974,084.79$ (2,865,278.29)$ 47.96%3,108,806.50$ (492,413.79)$ City of South Burlington General Ledger Revenue Report - STORM WATER UTILITIES Current Year Period 6 December Estimated Received % Budget Uncollected FY-23/24 MTD Account Revenue To Date Received Balance Pd 6 Dec S/WATER UTILITIES REVENUE Intergovernmental Revenue 1,189,000.00$ (830.70)$ 0.07%1,188,169.30$ -$ S/W User Fees - Water Bil 2,779,678.00$ (1,205,058.65)$ 43.35%1,574,619.35$ (183,144.42)$ GIS Reimb From Other Fund 50,543.00$ -$ 0.00%50,543.00$ -$ Pmts from other towns 40,000.00$ (4,320.98)$ 10.80%35,679.02$ -$ Land Owner Payments -$ (59,019.80)$ 100.00%(59,019.80)$ -$ Stormwater Miscellaneous 30,000.00$ (4,639.17)$ 15.46%25,360.83$ -$ Hadley Sewer Proj-Sewer f 73,000.00$ -$ 0.00%73,000.00$ -$ Reserve Transfer In 33,726.10$ -$ 0.00%33,726.10$ -$ Total STORM WATER UTILITIES 4,195,947.10$ (1,273,869.30)$ 30.36%2,922,077.80$ (183,144.42)$ Champlain Water District Balance Sheet - Unposted Transactions Included In Report 70 - South Burlington Water Department As of 12/31/2023 Current Year Assets Current Assets Cash & Cash Equivalents South Burlington Water Checking Account 1015 209,825.20 South Burlington Water Capital Reserve Account 1016 960,267.26 Total Cash & Cash Equivalents 1,170,092.46 Accounts Receivable AR import Balance 1101 Miscellaneous 250 137,146.39 Utility Billing 260 1,131,375.32 Unbilled Water 270 464,012.57 Total Accounts Receivable 1,732,534.28 Inventories Inventory 1200 53,572.54 Total Inventories 53,572.54 Total Current Assets 2,956,199.28 Long-term Assets Property & Equipment 3,775,642.36 Total Property & Equipment 3,775,642.36 Total Long-term Assets 3,775,642.36 Total Assets 6,731,841.64 Liabilities Short-term Liabilities Accounts Payable Accounts Payable 2000 916,988.32 Total Accounts Payable 916,988.32 Other Short-term Liabilities SB Stormwater Fees 2008 286,104.08 Total Other Short-term Liabilities 286,104.08 Total Short-term Liabilities 1,203,092.40 Long-term Liabilities Long-term Liabilities Bond Payable - SB Water Improvements 2701 285,315.27 Total Long-term Liabilities 285,315.27 Total Long-term Liabilities 285,315.27 Total Liabilities 1,488,407.67 Net Assets Beginning Net Assets Net Assets 4,235,998.76 Current YTD Net Income N/A 000 (3,092,362.27) Date: 1/9/24 01:40:33 PM Page: 1 Champlain Water District Balance Sheet - Unposted Transactions Included In Report 70 - South Burlington Water Department As of 12/31/2023 Current Year Retail Water 030 4,035,908.71 Bulk Water 040 63,888.77 Total Current YTD Net Income 1,007,435.21 Total Net Assets 5,243,433.97 Total Liabilities and Net Assets 6,731,841.64 Date: 1/9/24 01:40:33 PM Page: 2 Champlain Water District Statement of Revenues and Expenditures - Unposted Transactions Included In Report 70 - South Burlington Water Department 90 - South Burlington Water From 12/1/2023 Through 12/31/2023 CURRENT MONTH Year To Date Actual Original Total Budget $ - Original Remaining - Budget Percent Total Revenue Water Sales 4000 319,886.68 1,481,572.56 2,859,211.00 (48.18)% Interest Earned 4010 1,561.09 13,203.58 6,000.00 120.06% Private Hydrants / Sprinkler Systems 4035 18,453.76 45,102.31 44,500.00 1.35% Service Work 4036 890.00 8,102.60 14,000.00 (42.12)% Backflow Device Testing / Recording Fees 4037 45.00 90.00 1,200.00 (92.50)% Connection Fees - Operating 4040 2,550.00 42,000.00 108,000.00 (61.11)% Connection Fees - Capital 4041 1,700.00 28,000.00 30,000.00 (6.67)% Bond Payments - Connection/Allocation Fees 4042 82,632.00 334,284.10 30,000.00 1,014.28% Penalties 4050 2,284.98 12,811.49 20,000.00 (35.94)% Meter Sales 4053 3,907.33 8,224.58 16,000.00 (48.60)% Miscellaneous Revenue 4060 0.00 73.86 1,882.00 (96.08)% Grant Income 4075 0.00 0.00 174,000.00 (100.00)% South Burlington Sewer Department 4095 0.00 35,000.00 70,000.00 (50.00)% South Burlington Stormwater Department 4098 0.00 35,000.00 70,000.00 (50.00)% Water Bond Payment Revenue / Xfer from Capital 4200 0.00 140,861.49 281,722.99 (50.00)% Total Revenue 433,910.84 2,184,326.57 3,726,515.99 (41.38)% Total Revenue 433,910.84 2,184,326.57 3,726,515.99 (41.38)% Expenditures Supplies and Tools 5011 215.15 2,929.18 9,000.00 67.45% Postage 5012 78.20 6,469.20 16,000.00 59.57% Phones, Internet, Data, and Pagers 5013 0.00 0.00 500.00 100.00% Miscellaneous Expense 5017 0.00 294.11 2,000.00 85.29% General Insurance 5030 0.00 0.00 5,175.00 100.00% Consulting Services 5051 0.00 0.00 49,003.28 100.00% Management Fees 5052 11,977.00 71,862.00 143,725.00 50.00% Contractors 5054 0.00 27,950.71 130,772.00 78.63% Building Lease 5055 1,747.88 10,487.28 20,975.00 50.00% Legal 5060 0.00 0.00 1,500.00 100.00% Audit 5061 0.00 0.00 4,772.71 100.00% Public Outreach 5065 0.00 0.00 3,500.00 100.00% Principal on Long Term Debt 5070 0.00 0.00 94,980.00 100.00% Interest on Long Term Debt 5071 0.00 0.00 1,989.00 100.00% Water Purchase - CWD 5080 177,777.04 1,007,209.17 1,793,000.00 43.83% Water Supply Fees 5090 3,254.80 18,440.29 33,175.00 44.42% Capital Contribution - General 5100 0.00 260,015.50 520,031.00 50.00% Capital Transfer - Connection Fees 5105 98,182.00 362,284.10 60,000.00 (503.81)% Non-Bargaining Unit Salaries 5170 18,120.00 108,720.00 217,440.00 50.00% Bargaining Unit Salaries 5171 26,146.73 137,779.82 350,845.00 60.73% Date: 1/9/24 01:39:08 PM Page: 1 Champlain Water District Statement of Revenues and Expenditures - Unposted Transactions Included In Report 70 - South Burlington Water Department 90 - South Burlington Water From 12/1/2023 Through 12/31/2023 CURRENT MONTH Year To Date Actual Original Total Budget $ - Original Remaining - Budget Percent Total Overtime, Shift & Holiday 5172 579.14 4,372.72 13,000.00 66.36% Computer Network 5210 0.00 7,004.98 7,000.00 (0.07)% Software Maintenance 5220 0.00 0.00 12,685.00 100.00% Vehicle & Light Duty Equipment Maintenance 6400 2,345.68 14,074.08 28,148.00 50.00% Emergency On-Call Coverage 6700 250.00 1,500.00 2,800.00 46.43% Distribution Materials 6800 918.72 46,966.07 120,500.00 61.02% Distribution System Improvements 8502 0.00 0.00 84,000.00 100.00% Total Expenditures 341,592.34 2,088,359.21 3,726,515.99 43.96% Net Revenue Over Expenditures 92,318.50 95,967.36 0.00 0.00% Date: 1/9/24 01:39:08 PM Page: 2 Champlain Water District Balance Sheet - Unposted Transactions Included In Report 70 - South Burlington Water Department As of 1/31/2024 Current Year Assets Current Assets Cash & Cash Equivalents South Burlington Water Checking Account 1015 719,113.80 South Burlington Water Capital Reserve Account 1016 816,432.22 Total Cash & Cash Equivalents 1,535,546.02 Accounts Receivable AR import Balance 1101 Miscellaneous 250 93,719.13 Utility Billing 260 670,581.49 Unbilled Water 270 464,012.57 Total Accounts Receivable 1,228,313.19 Inventories Inventory 1200 53,572.54 Total Inventories 53,572.54 Total Current Assets 2,817,431.75 Long-term Assets Property & Equipment 3,775,642.36 Total Property & Equipment 3,775,642.36 Total Long-term Assets 3,775,642.36 Total Assets 6,593,074.11 Liabilities Short-term Liabilities Accounts Payable Accounts Payable 2000 922,376.10 Total Accounts Payable 922,376.10 Other Short-term Liabilities SB Stormwater Fees 2008 141,688.86 Total Other Short-term Liabilities 141,688.86 Total Short-term Liabilities 1,064,064.96 Long-term Liabilities Long-term Liabilities Bond Payable - SB Water Improvements 2701 285,315.27 Total Long-term Liabilities 285,315.27 Total Long-term Liabilities 285,315.27 Total Liabilities 1,349,380.23 Net Assets Beginning Net Assets Net Assets 4,235,998.76 Current YTD Net Income N/A 000 (3,309,684.14) Date: 2/6/24 11:44:33 AM Page: 1 Champlain Water District Balance Sheet - Unposted Transactions Included In Report 70 - South Burlington Water Department As of 1/31/2024 Current Year Retail Water 030 4,253,454.28 Bulk Water 040 63,924.98 Total Current YTD Net Income 1,007,695.12 Total Net Assets 5,243,693.88 Total Liabilities and Net Assets 6,593,074.11 Date: 2/6/24 11:44:33 AM Page: 2 City of South Burlington General Ledger Expenditure Report - GENERAL FUND Current Year Period 7 January % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan GENERAL GOVERNMENT EXP. CITY COUNCIL 63,750.00$ 14,563.66$ 22.84%49,186.34$ 8,580.49$ HR & BENFITS ADMINISTRATI 896,056.52$ 332,753.15$ 37.14%563,303.37$ 73,303.38$ GF INSURANCE 682,365.73$ 346,341.39$ 50.76%336,024.34$ -$ CITY MANAGER 523,229.45$ 207,457.53$ 39.65%315,771.92$ 39,771.38$ Total LEGAL/ACCOUNTING ACTUARY 366,115.31$ 227,906.14$ 62.25%138,209.17$ 59,754.53$ ADMINISTRATIVE SERVICES 1,242,115.17$ 549,855.24$ 44.27%692,259.93$ 134,204.77$ INFORMATION TECHNOLOGY 584,994.68$ 260,477.20$ 44.53%324,517.48$ 56,864.85$ CITY CLERK 464,169.43$ 266,502.57$ 57.41%197,666.86$ 47,378.73$ PHYSICAL PLANT 875,044.04$ 463,351.44$ 52.95%411,692.60$ 75,568.04$ ASSESSING/TAX/FINANCE 723,874.07$ 471,572.17$ 65.15%252,301.90$ 66,087.11$ PLANNING/DESIGN REVIEW 918,730.97$ 393,973.96$ 42.88%524,757.01$ 81,280.53$ TO CAPITAL/RESERVE FUNDS 933,200.00$ -$ 0.00%933,200.00$ -$ Total GENERAL GOVERNMENT EXP.8,273,645.37$ 3,534,754.45$ 42.72%4,738,890.92$ 642,793.81$ PUBLIC SAFETY FIRE DEPARTMENT 5,994,396.69$ 2,807,149.59$ 46.83%3,187,247.10$ 537,545.75$ POLICE DEPARTMENT 7,255,230.46$ 3,568,201.71$ 49.18%3,687,028.75$ 520,679.86$ Total PUBLIC SAFETY 13,249,627.15$ 6,375,351.30$ 47.83%6,874,275.85$ 1,058,225.61$ STREETS & HIGHWAYS HIGHWAY DEPARTMENT 4,575,586.04$ 2,533,708.85$ 55.37%2,041,877.19$ 565,951.11$ Total STREETS & HIGHWAYS 4,575,586.04$ 2,533,708.85$ 55.37%2,041,877.19$ 565,951.11$ CULTURE AND RECREATION % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan RECREATION ADMINISTRATION 527,613.70$ 208,081.74$ 39.44%319,531.96$ 51,745.96$ PROGRAMS 146,000.00$ 85,560.21$ 58.60%60,439.79$ 15,885.03$ RED ROCKS PARK -$ -$ 0.00%-$ (64.59)$ FACILITIES 175,056.25$ 28,129.94$ 16.07%146,926.31$ 1,773.05$ SENIOR PROGRAMS 38,500.00$ 12,017.30$ 31.21%26,482.70$ 524.65$ SPECIAL ACTIVITIES -$ (1,924.95)$ 00.00%1,924.95$ (1,924.95)$ PUBLIC LIBRARY 1,045,028.63$ 557,660.69$ 53.36%487,367.94$ 99,017.77$ CAPITAL/PARK MAINTENANCE 726,434.93$ 294,388.52$ 40.53%432,046.41$ 50,560.19$ Total CULTURE AND RECREATION 2,658,633.51$ 1,183,913.45$ 44.53%1,474,720.06$ 217,517.11$ OTHER OPERATING ENTITIES 937,809.97$ 654,184.35$ 69.76%283,625.62$ 197,184.67$ Total OTHER ENTITIES 937,809.97$ 654,184.35$ 69.76%283,625.62$ 197,184.67$ CURRENT PRINCIPAL BONDS 1,211,203.30$ 625,021.00$ 51.60%586,182.30$ -$ CURRENT INTEREST BONDS 233,813.00$ 124,188.59$ 53.11%109,624.41$ -$ Total GENERAL FUND 31,140,318.34$ 15,031,121.99$ 48.27%16,109,196.35$ 2,681,672.01$ City of South Burlington General Ledger Expenditure Report - ENTERPRISE FUND/W.P.C. Current Year Period 7 January % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan W/POLLUTION CONTROL EXPS. Salaries-Permanent 700,693.02$ 403,229.21$ 57.55%297,463.81$ 55,222.40$ Payment to Highway-wages 278,354.89$ -$ 0.00%278,354.89$ -$ Leave Time Turn-In 7,000.00$ -$ 0.00%7,000.00$ -$ Salaries-Overtime 75,000.00$ 51,345.13$ 68.46%23,654.87$ 5,561.82$ Payment to Sick Bank Fund 6,677.02$ -$ 0.00%6,677.02$ -$ Payroll Service 1,692.27$ -$ 0.00%1,692.27$ -$ PAFO Certification 9,000.00$ 6,289.04$ 69.88%2,710.96$ 807.64$ Sick Bank Payouts 10,000.00$ -$ 0.00%10,000.00$ -$ Fringe Benefits 9,300.69$ 300.00$ 3.23%9,000.69$ -$ FICA/Medicare 60,794.02$ 36,048.65$ 59.30%24,745.37$ 4,771.71$ Payment to Highway-FICA/M 33,289.64$ -$ 0.00%33,289.64$ -$ Vision Plan 779.69$ 403.29$ 51.72%376.40$ 58.64$ Disability Insurance 2,139.12$ 1,582.00$ 73.96%557.12$ 452.00$ Long Term Disability Insu 4,060.42$ 2,288.86$ 56.37%1,771.56$ 653.96$ Group Health Insurance 131,970.16$ 81,441.55$ 61.71%50,528.61$ 25,720.53$ Group Life Insurance 2,782.32$ 532.00$ 19.12%2,250.32$ 152.00$ Group Dental Insurance 7,409.53$ 3,680.63$ 49.67%3,728.90$ 606.75$ Pension 94,710.61$ 49,283.59$ 52.04%45,427.02$ 23,159.61$ ICMA Match 30,067.64$ 13,396.25$ 44.55%16,671.39$ 1,896.66$ Pension Note Payment 39,075.00$ -$ 0.00%39,075.00$ -$ Office Supplies 2,100.00$ 1,177.71$ 56.08%922.29$ 12.23$ Plant Supplies 125,000.00$ 17,839.30$ 14.27%107,160.70$ 3,426.52$ Polymer 120,000.00$ 78,402.12$ 65.34%41,597.88$ 32,853.13$ Sewer Line Maint/Supplies 27,000.00$ 28,293.75$ 104.79%(1,293.75)$ 23,464.10$ Pumping Station Supplies 18,000.00$ 15,880.71$ 88.23%2,119.29$ 126.36$ Laboratory Supplies 14,500.00$ 7,183.21$ 49.54%7,316.79$ 340.68$ Caustic Soda and Lime 175,000.00$ 90,800.44$ 51.89%84,199.56$ 23,279.40$ % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan Alum 280,000.00$ 189,700.77$ 67.75%90,299.23$ 25,481.82$ Water-Airport-B/B-Pump 1,800.00$ 1,063.30$ 59.07%736.70$ 225.35$ Generator Preventive Main 10,000.00$ 1,364.69$ 13.65%8,635.31$ 1,058.69$ Clothing Supplies 4,250.00$ 2,500.01$ 58.82%1,749.99$ -$ Truck Parts 12,500.00$ 3,865.73$ 30.93%8,634.27$ 1,204.42$ Gas - Diesel Fuel - Oil 13,000.00$ 12,178.17$ 93.68%821.83$ 2,025.23$ Fuel - Airport Parkway 65,000.00$ 28,482.68$ 43.82%36,517.32$ 6,994.38$ Fuel - Bartlett Bay 6,500.00$ 1,616.96$ 24.88%4,883.04$ 894.90$ Telephone and Alarms 6,500.00$ 6,860.14$ 105.54%(360.14)$ 751.13$ Memberships/Dues 39,607.80$ 18,417.14$ 46.50%21,190.66$ 240.00$ Discharge Permits 15,000.00$ 3,750.00$ 25.00%11,250.00$ -$ Workers Comp Insurance 18,729.67$ 9,457.62$ 50.50%9,272.05$ -$ Property Insurance 61,598.06$ 33,205.75$ 53.91%28,392.31$ -$ Unemployment Insurance 933.57$ -$ 0.00%933.57$ -$ Safety 5,500.00$ 12,199.20$ 221.80%(6,699.20)$ 5,986.62$ Billing Payment to CWD 73,000.00$ 35,000.00$ 47.95%38,000.00$ 35,000.00$ Soil/Sludge Management 140,000.00$ 81,819.16$ 58.44%58,180.84$ 9,583.67$ Landfill Fees 1,000.00$ -$ 0.00%1,000.00$ -$ Building Improvements 7,500.00$ 991.89$ 13.23%6,508.11$ 991.89$ Pumps Replacements 55,000.00$ 20,400.00$ 37.09%34,600.00$ -$ Pumps Replacements 43,000.00$ 13,768.98$ 32.02%29,231.02$ -$ Marathon Health ctr cost 22,031.39$ -$ 0.00%22,031.39$ -$ HVAC Maintenance 38,000.00$ 15,571.39$ 40.98%22,428.61$ 4,103.52$ Auditing 3,773.86$ -$ 0.00%3,773.86$ -$ Engineering/Consulting 18,000.00$ 516.00$ 2.87%17,484.00$ -$ Landfill Engineering 17,500.00$ 25,129.14$ 143.60%(7,629.14)$ -$ Payment to SW for GIS 12,635.00$ -$ 0.00%12,635.00$ -$ Administrative Services 145,281.42$ -$ 0.00%145,281.42$ -$ Burlington Sewer Lines 2,000.00$ 791.20$ 39.56%1,208.80$ 343.51$ Travel & Training 6,500.00$ 3,435.02$ 52.85%3,064.98$ 470.00$ Utilities-Pumping Station 105,000.00$ 53,207.76$ 50.67%51,792.24$ 11,145.43$ % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan Utilities--L/Fill Station 900.00$ -$ 0.00%900.00$ -$ Electric-Airport Parkway 210,000.00$ 89,382.81$ 42.56%120,617.19$ 10,237.21$ Electric-Bartlett Bay 150,000.00$ 85,019.35$ 56.68%64,980.65$ 27,648.58$ Replacement-Vehicles 290,000.00$ 55,076.13$ 18.99%234,923.87$ -$ Pump Repairs -$ 21,261.00$ 100.00%(21,261.00)$ -$ PMT to SW for Hadley Loan 73,648.00$ -$ 0.00%73,648.00$ -$ Bartlett Bay Upgrades 600,000.00$ 36,588.00$ 6.10%563,412.00$ 22,217.50$ Capital Projects - CIP 350,000.00$ 10,900.70$ 3.11%339,099.30$ 9,178.11$ Loan for Hadley Sewer 112,000.00$ 111,786.54$ 99.81%213.46$ -$ Loan for Airport Parkway 970,000.00$ -$ 0.00%970,000.00$ -$ Total ENTERPRISE FUND/W.P.C.5,974,084.81$ 1,874,704.67$ 31.38%4,099,380.14$ 378,348.10$ City of South Burlington General Ledger Expenditure Report - STORM WATER UTILITIES Current Year Period 7 January % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan S/WATER UTILITIES EXPS Salaries-Permanent 458,034.55$ 297,004.86$ 64.84%161,029.69$ 39,864.82$ Payment to Highway-Wages 78,215.00$ -$ 0.00%78,215.00$ -$ Salaries-Overtime 23,000.00$ 13,714.63$ 59.63%9,285.37$ 5,821.78$ Payment to Sick Bank Fund 5,900.62$ -$ 0.00%5,900.62$ -$ Payroll Service 1,480.75$ -$ 0.00%1,480.75$ -$ Fringe Benefits 6,387.00$ 424.00$ 6.64%5,963.00$ 124.00$ FICA/Medicare 36,799.14$ 24,593.55$ 66.83%12,205.59$ 3,625.47$ Vision Plan 631.39$ 222.88$ 35.30%408.51$ 30.91$ Disability Income Insuran 4,574.64$ 3,385.23$ 74.00%1,189.41$ 967.20$ Group Health Insurance 113,897.30$ 73,852.81$ 64.84%40,044.49$ 27,748.44$ Health Insurance FICA 459.00$ -$ 0.00%459.00$ -$ Group Life Insurance 1,906.98$ 465.50$ 24.41%1,441.48$ 133.00$ Group Dental Insurance 5,718.61$ 3,444.36$ 60.23%2,274.25$ 574.06$ Pension 88,872.21$ 19,749.03$ 22.22%69,123.18$ 9,143.49$ ICMA Match 23,002.64$ 16,476.95$ 71.63%6,525.69$ 2,192.60$ Pension Note Payment 26,910.00$ -$ 0.00%26,910.00$ -$ Office Supplies 1,500.00$ 2,118.41$ 141.23%(618.41)$ 767.09$ Small Equipment/Tools 3,000.00$ 3,709.23$ 123.64%(709.23)$ 573.39$ Uniforms/Supplies 6,500.00$ 3,707.13$ 57.03%2,792.87$ 8.07$ Gasoline 2,500.00$ 1,933.51$ 77.34%566.49$ 381.42$ Oil 275.00$ 332.16$ 120.79%(57.16)$ -$ Diesel Fuel 7,500.00$ 5,499.44$ 73.33%2,000.56$ 590.32$ Permit Requirement-Educat 7,000.00$ 7,000.00$ 100.00%-$ -$ Telephone 2,000.00$ 1,289.29$ 64.46%710.71$ 62.74$ Membership/Dues 600.00$ 391.00$ 65.17%209.00$ 391.00$ Discharge Permits Renewal 24,000.00$ 14,776.00$ 61.57%9,224.00$ -$ Workers Comp Insurance 16,551.80$ 8,357.90$ 50.50%8,193.90$ -$ % Budget Unencumbered FY-23/24 MTD Account Budget Expenditures Expended Balance Pd 7 Jan Property Insurance 14,245.09$ 7,679.34$ 53.91%6,565.75$ -$ Unemployment Insurance 933.57$ -$ 0.00%933.57$ -$ GIS-Fees/Software 75,000.00$ 12,120.83$ 16.16%62,879.17$ 976.80$ Sediment & Depris Disposa 200.00$ -$ 0.00%200.00$ -$ Water Quality Monitoring 15,000.00$ 9,789.04$ 65.26%5,210.96$ -$ Building/Grounds Maint 200.00$ -$ 0.00%200.00$ -$ Reimb Highway Benefit 33,289.64$ -$ 0.00%33,289.64$ -$ Marathon Health ctr cost 25,178.73$ -$ 0.00%25,178.73$ -$ Vehicle Maintenance 15,000.00$ 13,263.15$ 88.42%1,736.85$ (523.51)$ Storm System Maint Materi 100,000.00$ 11,753.03$ 11.75%88,246.97$ 459.33$ Printing 100.00$ -$ 0.00%100.00$ -$ Legal Services 20,000.00$ -$ 0.00%20,000.00$ -$ To GF-Audit and Actuary 4,287.21$ -$ 0.00%4,287.21$ -$ Engineering-Watershed 35,000.00$ -$ 0.00%35,000.00$ -$ Billing Payment CWD 73,000.00$ 35,000.00$ 47.95%38,000.00$ -$ Office Furniture/Equipmen 1,000.00$ -$ 0.00%1,000.00$ -$ Office Equipment Maintena 2,500.00$ 39.12$ 1.56%2,460.88$ 12.23$ Equipment Rental 250.00$ -$ 0.00%250.00$ -$ Administrative Services 66,746.24$ -$ 0.00%66,746.24$ -$ Conference/Training Expen 8,000.00$ 2,667.50$ 33.34%5,332.50$ 1,380.00$ S/W Bldg Utilities 3,500.00$ 1,475.01$ 42.14%2,024.99$ 435.30$ Stormwater Pumps Electric 300.00$ 146.74$ 48.91%153.26$ 24.92$ Flow Restoration Plan Ana 5,000.00$ -$ 0.00%5,000.00$ -$ Vehicles/Equipment 745,000.00$ 261,997.83$ 35.17%483,002.17$ -$ Stormwater Capital Projec 2,005,000.00$ 372,154.65$ 18.56%1,632,845.35$ 14,827.40$ Total STORM WATER UTILITIES 4,195,947.11$ 1,230,534.11$ 29.33%2,965,413.00$ 110,592.27$ City of South Burlington General Ledger Revenue Report - GENERAL FUND Current Year Period 7 January Estimated Received % Budget Uncollected FY-23/24 MTD Account Revenue To Date Received Balance Pd 7 Jan TAX REVENUE TAX REVENUE 19,604,298.92$ (13,992,521.71)$ 71.37%5,611,777.21$ (145,953.88)$ LOCAL OPTION TAXES 4,850,000.00$ (2,015,676.89)$ 41.56%2,834,323.11$ -$ Total TAX REVENUE 24,454,298.92$ (16,008,198.60)$ 65.46%8,446,100.32$ (145,953.88)$ INTEREST/PENALTY ON TAX 423,500.00$ (191,731.77)$ 45.27%231,768.23$ (2,790.53)$ Other Health Services 267,346.40$ (53,349.17)$ 19.96%213,997.23$ (30,742.95)$ CITY MANAGER 1,842,326.56$ (890,496.58)$ 48.34%951,829.98$ (145,397.79)$ CITY CLERK 351,000.00$ (127,279.63)$ 36.26%223,720.37$ (16,396.00)$ PLANNING 561,100.00$ (288,498.91)$ 51.42%272,601.09$ (19,352.54)$ FIRE DEPARTMENT 799,000.00$ (691,013.60)$ 86.48%107,986.40$ (19,392.42)$ AMBULANCE 990,000.00$ (694,796.32)$ 70.18%295,203.68$ (104,359.57)$ POLICE DEPARTMENT 277,150.00$ (49,173.72)$ 17.74%227,976.28$ (6,840.38)$ HIGHWAY DEPARTMENT 1,014,896.45$ (1,309,082.54)$ 28.99%(294,186.09)$ (939,458.72)$ Senior Programs 26,650.00$ (19,467.00)$ 73.05%7,183.00$ (1,236.00)$ SPECIAL ACTIVITIES 125,000.00$ (89,843.15)$ 71.87%35,156.85$ (5,907.15)$ PUBLIC LIBRARY 8,050.00$ (11,699.22)$ 45.33%(3,649.22)$ (1,797.08)$ Total GENERAL FUND 31,140,318.33$ (20,424,630.21)$ 65.59%10,715,688.12$ (1,439,625.01)$ City of South Burlington General Ledger Revenue Report - ENTERPRISE FUND/W.P.C. Current Year Period 7 January Estimated Received % Budget Uncollected FY-23/24 MTD Account Revenue To Date Received Balance Pd 7 Jan CHARGES FOR SERVICES W.P.C. User Fees 4,113,150.00$ (2,124,531.98)$ 51.65%1,988,618.02$ -$ Sewer Septage Revenue 23,000.00$ (19,119.50)$ 83.13%3,880.50$ -$ Connection Fees 582,800.00$ (706,786.62)$ 121.27%(123,986.62)$ (17,363.84)$ Enviromental Impact -$ (4,030.00)$ 100.00%(4,030.00)$ -$ Total CHARGES FOR SERVICES 4,718,950.00$ (2,854,468.10)$ 60.49%1,864,481.90$ (17,363.84)$ BOND AND LOAN PROCEEDS Colchester A/P Pkwy Pm 742,310.00$ -$ 0.00%742,310.00$ -$ Total BOND AND LOAN PROCEEDS 742,310.00$ -$ 0.00%742,310.00$ -$ MISCELLANEOUS Miscellaneous Rev.-W.P 10,000.00$ (28,174.03)$ 281.74%(18,174.03)$ -$ Reserve Fund Transfer 502,824.79$ -$ 0.00%502,824.79$ -$ Total MISCELLANEOUS 512,824.79$ (28,174.03)$ 5.49%484,650.76$ -$ Total ENTERPRISE FUND/W.P.C.5,974,084.79$ (2,882,642.13)$ 48.25%3,091,442.66$ (17,363.84)$ City of South Burlington General Ledger Revenue Report - STORM WATER UTILITIES Current Year Period 7 January Estimated Received % Budget Uncollected FY-23/24 MTD Account Revenue To Date Received Balance Pd 7 Jan S/WATER UTILITIES REVENUE Intergovernmental Revenue 1,189,000.00$ (830.70)$ 0.07%1,188,169.30$ -$ S/W User Fees - Water Bil 2,779,678.00$ (1,205,058.65)$ 43.35%1,574,619.35$ -$ GIS Reimb From Other Fund 50,543.00$ -$ 0.00%50,543.00$ -$ Pmts from other towns 40,000.00$ (4,320.98)$ 10.80%35,679.02$ -$ Land Owner Payments -$ (59,019.80)$ 100.00%(59,019.80)$ -$ Stormwater Miscellaneous 30,000.00$ (4,639.17)$ 15.46%25,360.83$ -$ Hadley Sewer Proj-Sewer f 73,000.00$ -$ 0.00%73,000.00$ -$ Reserve Transfer In 33,726.10$ -$ 0.00%33,726.10$ -$ Total STORM WATER UTILITIES 4,195,947.10$ (1,273,869.30)$ 30.36%2,922,077.80$ -$ Champlain Water District Statement of Revenues and Expenditures - Unposted Transactions Included In Report 70 - South Burlington Water Department 90 - South Burlington Water From 1/1/2024 Through 1/31/2024 CURRENT MONTH Year To Date Actual Original Total Budget $ - Original Remaining - Budget Percent Total Revenue Water Sales 4000 217,581.78 1,699,154.34 2,859,211.00 (40.57)% Interest Earned 4010 1,919.84 15,123.42 6,000.00 152.06% Private Hydrants / Sprinkler Systems 4035 0.00 45,102.31 44,500.00 1.35% Service Work 4036 18,319.23 26,421.83 14,000.00 88.73% Backflow Device Testing / Recording Fees 4037 150.00 240.00 1,200.00 (80.00)% Connection Fees - Operating 4040 3,000.00 45,000.00 108,000.00 (58.33)% Connection Fees - Capital 4041 2,000.00 30,000.00 30,000.00 0.00% Bond Payments - Connection/Allocation Fees 4042 6,300.00 340,584.10 30,000.00 1,035.28% Penalties 4050 3,808.06 16,619.55 20,000.00 (16.90)% Meter Sales 4053 1,188.57 9,413.15 16,000.00 (41.17)% Miscellaneous Revenue 4060 1,004.55 1,078.41 1,882.00 (42.70)% Grant Income 4075 0.00 0.00 174,000.00 (100.00)% South Burlington Sewer Department 4095 0.00 35,000.00 70,000.00 (50.00)% South Burlington Stormwater Department 4098 0.00 35,000.00 70,000.00 (50.00)% Water Bond Payment Revenue / Xfer from Capital 4200 0.00 140,861.49 281,722.99 (50.00)% Total Revenue 255,272.03 2,439,598.60 3,726,515.99 (34.53)% Total Revenue 255,272.03 2,439,598.60 3,726,515.99 (34.53)% Expenditures Supplies and Tools 5011 219.07 3,148.25 9,000.00 65.02% Postage 5012 401.88 6,871.08 16,000.00 57.06% Phones, Internet, Data, and Pagers 5013 0.00 0.00 500.00 100.00% Miscellaneous Expense 5017 0.00 294.11 2,000.00 85.29% General Insurance 5030 0.00 0.00 5,175.00 100.00% Consulting Services 5051 0.00 0.00 49,003.28 100.00% Management Fees 5052 11,977.00 83,839.00 143,725.00 41.67% Contractors 5054 0.00 27,950.71 130,772.00 78.63% Building Lease 5055 1,747.88 12,235.16 20,975.00 41.67% Legal 5060 0.00 0.00 1,500.00 100.00% Audit 5061 0.00 0.00 4,772.71 100.00% Public Outreach 5065 0.00 0.00 3,500.00 100.00% Principal on Long Term Debt 5070 0.00 0.00 94,980.00 100.00% Interest on Long Term Debt 5071 0.00 0.00 1,989.00 100.00% Water Purchase - CWD 5080 142,101.89 1,149,311.06 1,793,000.00 35.90% Water Supply Fees 5090 2,601.65 21,041.94 33,175.00 36.57% Capital Contribution - General 5100 0.00 260,015.50 520,031.00 50.00% Capital Transfer - Connection Fees 5105 8,300.00 370,584.10 60,000.00 (517.64)% Non-Bargaining Unit Salaries 5170 18,120.00 126,840.00 217,440.00 41.67% Bargaining Unit Salaries 5171 25,449.97 163,229.79 350,845.00 53.48% Date: 2/6/24 11:46:08 AM Page: 1 Champlain Water District Statement of Revenues and Expenditures - Unposted Transactions Included In Report 70 - South Burlington Water Department 90 - South Burlington Water From 1/1/2024 Through 1/31/2024 CURRENT MONTH Year To Date Actual Original Total Budget $ - Original Remaining - Budget Percent Total Overtime, Shift & Holiday 5172 117.44 4,490.16 13,000.00 65.46% Computer Network 5210 0.00 7,004.98 7,000.00 (0.07)% Software Maintenance 5220 0.00 0.00 12,685.00 100.00% Vehicle & Light Duty Equipment Maintenance 6400 2,345.68 16,419.76 28,148.00 41.67% Emergency On-Call Coverage 6700 250.00 1,750.00 2,800.00 37.50% Distribution Materials 6800 18,451.76 65,417.83 120,500.00 45.71% Distribution System Improvements 8502 0.00 0.00 84,000.00 100.00% Total Expenditures 232,084.22 2,320,443.43 3,726,515.99 37.73% Net Revenue Over Expenditures 23,187.81 119,155.17 0.00 0.00% Date: 2/6/24 11:46:08 AM Page: 2 QUARTERLY FINANCIAL REPORTING From: Martha Machar, Finance Director City Leadership Team To:South Burlington City Council Jessie Baker, City Manager Subjects: FY24 Financial Report, Quarter Ended December 31, 2023 Date: January 15, 2024 FY24 financial reports for the period ending December 31, 2023, are attached. Only summary reports for the general fund budget are included. Detailed reports can be found in the Council SharePoint folder. I am pleased to share that overall, the general fund expenses and revenues through the end of the second quarter are on target. As we have completed half of the fiscal year, this is a good time to check-in on what we anticipate for the remainder of the year. Expenses are at 39.66% which is consistent with prior year’s spending. Revenues on the other hand are at 60.97%. The significant increase in the revenue numbers is largely attributed to some of the budget lines out-performing conservative projections made in December 2022. Specifically, interest on investments and electrical inspection revenue lines have more than doubled projected amounts. It is also important to note that interfund transfers have not been made and hence many of the revenue lines still show no receipts. The interfund transfers will be performed by the end of the third quarter. Find below the financial narratives from department managers for the second quarter ending 12/31/2023. Administration: CITY MANAGER, LEGAL, ADMINISTRATION, INSURANCE & FINANCE Overall, expenses are on target as budgeted. For budget lines that are currently underspent, timing is a factor. Some invoices are only paid during the second half of the year. The healthcare plan is running well. Our claims are under 41% of the FY24 projection at the end of the second quarter. Utilization of the resources for employee wellbeing, including the health center is better than industry standard. On the revenue side, lines that are currently showing zero revenues collected to-date are for interdepartmental or interfund transfers. These will be completed during the third quarter. Interest on investment income has more than doubled the projection at the close of the second quarter and this is largely due to the Federal rate increases. The City receives 80% of the Federal rate increase from our current financial institution, TD Bank, on the depository account. The Local Option Tax (LOT) revenue continues to come in higher than last fiscal year. The second quarter allotment was 1.89% higher than the second quarter for last fiscal year. Given the last two quarters’ receipts, although too soon to be certain, the LOT revenue will outperform our projections. We are also projecting that the anticipated total eclipse over Vermont will have a positive impact on the next quarter’s LOT receipts. HUMAN RESOURCES: (Department Head: Daisy Brayton) OVERALL SUMMARY (Provide a brief summary of how your department ended the quarter/year compared to budget projections): Overall budget expenditures are at 28.95%. Advertising expenditures are at 89%, however, budget is expected to be overspent, as we are posting job advertisements much more regularly. KEY HIGHLIGHTS (Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council) NeoGov applicant tracking system was designed and implemented. Employee Handbook was revised and updated. ADP Optimization Project was proposed, the contract was signed and the project began in 2nd Qtr. FY24. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES (Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each) Telephone budget will not be fully spent because HR Director switched from a City Cell Phone to a monthly stipend. Advertising budget will be overspent as we establish a more accurate budget. Dues and Subscriptions currently budgeted at $2,000 and has no current expenditures will be spent as SHRM memberships will be paid/reimbursed in the next quarter. CITY CLERK: (Department Head: Holly Rees) OVERALL SUMMARY (Provide a brief summary of how your department ended the quarter/year compared to budget projections): Revenues are hovering around 32%, which is less than anticipated and planned for. While revenues will be recovered for most line items by the end of the fiscal year, the trend for both recording fees and photocopies will likely mean a cumulative revenue loss impact of about $97,000. Expenses are exactly as predicted; 47.21% at the end of the first quarter. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): • Re-Organized workspaces to allow for the Deputy City Clerk to have an Office to complete daily tasks free of office traffic distraction. • Created a permanent workspace at the Front Desk so that everyone who accesses the City Clerks Office is greeted immediately by a staff member and a smile. • Change in DMV operations and elimination of registration stickers precipitated a change in our office procedures so that we are no longer doing DMV renewals as of November 1 • Evaluated the time taken for free Notary Services and based on data made a policy change that we only provide Notary Services for South Burlington residents and business affiliates. • Hired Assistant Clerk, Brian Russell in October to complete our team of four. Thankful to be fully staffed. • Completed mandatory elections training for Accessible Voting and Tabulator Maintenance. • Passed annual Accessible Voting Audit of new District 8 Polling Location (Senior Center) • Completed the required reporting to the State for Marriage Licenses and Animal Licenses • Completed the annual indexing of all Vital Records from 2023 • Began moving items from the old vault and relocating to the new vault with the intention of creating a “Land Records and City Documents Vault” at 180 Market Street and an “Elections Vault” at 577 Dorset Street. INDIVIDUAL BUDGET LINES - REVENUES AND EXPENSES (consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): Revenues: Recording fees: We anticipate seeing significant revenue loss in this line item to the tune of $92,000. Increased interest rates, inflation and economic instability are all factors in a slow of sales and refinancing. Research/Photocopy Fees: We anticipate seeing a total revenue loss in this line item of about $5,500. This directly correlates to the percentage loss in the recording fee revenue as both are tied to the rates of purchase, sale and refinancing. Pet Licenses: While we do see some residents coming in to register their pets as they move into the city or welcome a new family member, these are minimal compared to the anticipated 1800 registrations we will process in January, February, and March ahead of the required April 1 due date. Beverage Licensing: Traditionally the Liquor Licenses were all on an April 1 renewal deadline. The State changed this last year to a rolling 1 year renewal from date of registration, so that if you registered in September, you wouldn’t be due again until the following September. With this change comes the potential for a more consistent and steadier workflow and revenue stream, but it will take a couple of years move away from seeing the bulk of this activity in April. It is anticipated we will realize all of the revenues by the end of the fiscal year. Motor Vehicle Renewals Due to a change in process with the DMV which began in November, we are no longer supporting DMV renewals through our office. The elimination of the sticker (a reason residents would access our service) has meant that we can no longer provide service beyond what someone can do from their own home computer or kiosk computer at the DMV up the road. Local Elections Reimbursement We will be reimbursed by the Champlain Water District for running their election on March 5. The reimbursement will be $300 per district. We will see a revenue generation of $1,500 which is comprehensive of all our five voting districts. This will be a shortfall of $500 from the estimated revenue. Chittenden County Clerks are working on getting this amount increased for future years to $500 per district. Expenses: Animal Control This line item will be transferred to the SBPD by the end of the FY to contribute to the Animal Control Officers contract. Election Expenses Anticipate that we will use this line item fully for needed election supplies, food for workers and paying a part time contract to retired City Clerk, Donna Kinville, to assist leading up to and including election day on March 5. BCA It is planned to spend this line item with the February Abatement Meetings and the upcoming March elections. Election Workers- Feb and March It is planned to spend the totality of this budget on the March Elections between Training, Pre- Processing and Elections Day. Travel and Training: With the business of Animal Licensing, March Elections and mandated preparations for August and November Elections through the Secretary of States Office, we do not anticipate spending the remaining funds for Travel and Training so will be actualizing a $3,000 savings on this line item. IT: (Department Head: Nick Gingrow) OVERALL SUMMARY (Provide a brief summary of how your department ended the quarter/year compared to budget projections) We are slightly under budget in Computer Software and IT Utility services but fairly close to where we’d be expected to be at this point. Support services and capital projects are much lower than budgeted because of leadership transition for most of the first half of the year. We’re working on finalizing quotes and projects for the remainder of the fiscal year and we are hoping to utilize most of the remaining budget dollars on outstanding projects. KEY HIGHLIGHTS (Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council) The major project of this fiscal year to date is the phone transition from BCN to our new carrier NHC, this has taken far more effort than was initially expected, but we are moving over the eight final phone lines now and have a plan for getting the city’s remote locations upgraded this spring. In addition, we have hired an all new 3-person IT staff who are now fully onboarded. We are currently working on obtaining quotes to upgrade the current City Hall core switches that are causing numerous management and security issues, as well as upgrading our city-wide firewall infrastructure which is quite outdated. Additionally, we are working on upgrading the Police department’s network, servers, and datastores, and hoping that we can get these upgraded, at least in part, this fiscal year. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES (Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each) As mentioned earlier, IT Support Services and IT Capital Projects have been very underutilized, these often go hand in hand, but with the leadership gap for a large part of this year, there was some understandable reluctance to go forward with any large-scale projects without an IT Director in place. Additionally, the Travel and Training budget line has yet to be touched, since the entire IT department has only been here for 6 months or less, we’ve been occupied with understanding where our current infrastructure is, so the time and need for training has yet to present itself. PLANNING & ZONING: (Department Head: Paul Conner) OVERALL SUMMARY (Provide a brief summary of how your department ended the quarter/year compared to budget projections) At the mid-point of the year, the P&Z budget is where we expected it to be. Revenues are at 48% of budget, and expenses are at 34%. Several of the annual expenses, including stipends for board members, consulting, and training, tend to be expended within the second half of the year due to processing times and schedules. KEY HIGHLIGHTS Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council. Several big projects are advancing as planned. • City Plan 2024 was adopted on January 29, 2024 following an 18-month outreach and development process. • The Transportation Sector Climate Action Implementation Plan was completed, while the Government Operations Sector Plan is nearing completion. • City staff and the Planning Commission are working to implement the changes required by S.100 / Act 47. • Transportation Demand Management and Transportation Impact Fee updates are nearing completion • On the development review side, several large projects completed their construction, including Beta, OnLogic, and the school ZEMs. Several others were started including a multi-story, mixed-use building on Shelburne Road by Farrell Street and in City Center along Market Street. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES (Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each) Revenue: Development Review Fees are low for the first 6 months of the year. This is in part due to the timing of projects; several large projects being reviewed early in FY ‘24 were submitted in FY ‘23. Expenditures. As noted above, DRB/PC stipends are processed in Q3; training is anticipated in spring ‘24, and several consulting efforts will be billed in Q3 and Q4 PHYSICAL PLANT: (Department Head: Greg Yandow) OVERALL SUMMARY (Provide a brief summary of how your department ended the quarter/year compared to budget projections) Most are between 20% and 42% of 6-month projections with two exceptions, Building Maintenance 59% and HVAC Maintenance (54%). Facilities has overspent the Stewardship/maintenance budget by 120% ($2,585) Reason: Aging infrastructure repairs at DPW, Police Station, Fire Stations 1 and 2 HVAC, And, finding out about the Water Tower Maintenance Agreement that we had no idea that we were responsible for. Energy inefficient/failing windows seals all buildings except 180 (seals and non-insulated frames) which we will be dealing with in the 25 – 28 budget cycles. KEY HIGHLIGHTS Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council. Continuing to work on improvements within city buildings. Wheeler houses a new energy efficient electric hot water heater, mixing valve, and commercial dehumidifier (CIP). DPW upcoming window treatments and 3 (We have a grant for 75K that we will use at DPW to replace (3) gas 5 ton units with electric with natural gas as backup). Police Station: Police dispatch and upcoming ATS panel. Fire Station 2 (replacement of obsolete generator and replaced with new 26Kw generator, ATS switch and now complete station coverage by generator (CIP). INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES (Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each) Revenue: Charge Point - We are averaging through session fees approximately $285.00. December is an outlier with the least (?) at $53. Others $256 to 349 per month). Facilities Stewardship/Maintenance (100-10-3400-76.02) budget is overspent by $2,585. This is due to aging infrastructure within buildings. This was our contingency fund. HVAC was the cause for most of this. Life expectancy has been reached on all heat pumps within the city that haven’t been replaced in the last couple of years. (We have a grant for 75K that we will use at DPW to replace (3) gas 5-ton units with electric with natural gas as backup). RECREATION & PARKS: (Department Head: Adam Matth) OVERALL SUMMARY Provide a brief summary of how your department ended the quarter/year compared to budget projections The Q2 numbers show us under budget or pacing as expected throughout the various line items Admin, Programs, Facilities and Senior Programs.  The various items showing well over the projections at the current moment are due to elements which are seasonal in nature (SB Night Out, facilities in use during summer/fall) or due to staffing situation throughout the first half of the fiscal year. Line items showing us well under pace at the current moment are projected out during the second half of the year (youth programs, school use, printing/marketing, and capital items). Revenues: Tracking at 67% Expenses: Tracking at 30% KEY HIGHLIGHTS Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council Hosted Glow Walk & Pumpkin Carving with ~400 people in attendance. Successful Spark the Park events despite the weather, hosted two different community nights at Veterans Park.  Senior Holiday meal was a success and sold out. Youth basketball kicked off during December and had 123 of the 126 available spots filled. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each SB Night Out:  Revenues are lower than initially projected due to the weather which impacted multiple cancellations and ultimately vendor refunds last summer.  Youth Programs: Revenues do not include our winter and spring sports (soccer, track, swimming, drivers education, lacrosse, baseball) which will be reflected on the third quarter financials.   Expenses:  Overtime:  Due to the nature of the department being short staffed (down one full time employees) for the quarter. This also is offset by the general recreation administrative salary budget line item being well under projection at the current moment.  Park Salaries: Another seasonal element where park staff is managed during Q1 of a fiscal year and then return in Q4 for the second half of those line items.  Capital Items:  Projects below are currently in the bid process.  Beam Replacement at Vet  Dugout Replacement at Vet  Bleacher Replacement at Vet  Senior Meal Cost:  December meals have not been submitted into the expense report showing a lower value than current actual figures. Special Events: This expense line item is projected out to the $30k over the remaining half of the fiscal year to include events below. • Valentine Dance, Paint and Sips, Skate Night, Egg Hunt, Family Trivia, Camp Out, Touch a Truck, Community Movie and initial funding of Rec On the Go. Youth Programs: With expenses from the winter/spring/summer program sessions and driver’s education this line item should project out to roughly $55k at the end of the year. Senior Events: Will project out to ~$7.5k with spring brunch expenses added. Facility Improvements: Currently at 2.29%, internally developing a list of projects and areas within parks to utilize this fund into the spring to help alleviate the deferred maintenance and larger cost items down the road. LIBRARY: (Department Head: Jennifer Murray) OVERALL SUMMARY Provide a brief summary of how your department ended the quarter/year compared to budget projections. Library expenditures overall are close to 50%, which is on target. Revenue is higher due to continued increases in room reservations. KEY HIGHLIGHTS Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council • Library Tech Help opportunities have increased, with volunteers offering help by appointment weekly and alternate Tuesdays as drop-in. • English Conversation Circle meets twice a month, led by staff and volunteers with the help of the Master's in Teaching English to Speakers of Other Languages students at St. Michael's College. The in-person conversations are augmented by our online Mango Languages app which offer assistance in learning and practicing English along with many other languages. Volunteers are now also offering a Mandarin Conversation Group. • The Library hosted its first Red Cross Blood Drive. • In this quarter the popularity of storytimes led staff to go back to offering two Toddler Storytimes each week. Then with sudden staff changes, they pivoted towards offering open play time for toddlers and infants instead as we look for a new programmer. • Collaboration with the SB Energy Committee led to a book discussion of Braiding Sweetgrass by Robin Kimmerer. • Staff serving teens and adults have planned many events around the themes of Chinese culture and LGBTQ+ teens in keeping with the current Vermont Reads title, Last Night at the Telegraph Club by Malinda Lo and related graphic novel, Messy Roots by Laura Gao. • Planning for the winter concert series and an exciting Artist-in-Residence series are in progress, as are early plans for Summer Reading 2024, Adventures Begin at Your Library, featuring a focus on Vermont. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each Specific items that will be spent out in the next quarter include computer hardware and staff training. Computer Fees and Dues and Subscriptions are invoiced throughout the year. Library Supplies are under spent, awaiting a large order of library cards and supplies for processing audio books and DVDs which had been handled by the vendor until recently. Postage payment is handled through fund transfer at the end of the year. FIRE & AMBULANCE SERVICES: (Department Head: Steven Locke) OVERALL SUMMARY Provide a brief summary of how your department ended the quarter/year compared to budget projections The Fire Department finished the second quarter of FY24 in a strong position. Revenues for both prevention and ambulance transports are exceeding budget expectations. Projections anticipate totals revenues at the conclusion of the fiscal year will exceed budget by $250,000. Expenses for the Fire Department are trending on target. While several line items are exceeding budget estimates, the total expenses are less than 50% at this halfway point. KEY HIGHLIGHTS Showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council As was mentioned in the first quarter report, the Fire Department has implemented computer aided dispatch and filled all vacancies. As was discussed at last year’s budget presentation, not having all positions filled was a prime reason for the massive amount of overtime. The Department has seen a significant reduction in overtime which increases employee morale and quality of life. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES Consider which surpluses and overages might “jump off the page” for a reader and provide a brief narrative/explanation for each Overtime Training – this line item is 242% expended. Primary reason is required training for all staff on new rope rescue techniques and boat operations. These needed to be conducted off duty, so employees compensated accordingly. Additionally we supported four members who completed the Fire Officer program (required for promotional eligibility and held recruit training in live fire at the State’s Fire Academy. Firefighter Clothing – several new employees required to be outfitted with structural fire protection clothing (pants, coat, boots, helmet, gloves and hood). Complete package costs more than 5k per employee. This account will be overspent for some time in order to catch up. Airpack maintenance – we have had a couple units break and the costs to repair have been over 2k each. Vendor failed to provide a couple FY23 invoices before 8/30/23 so expense carried into FY24. Computer Contracts – This is 132% expended, but is the one time fee for records management system which is invoiced at the beginning of fiscal year. Telephone/Internet – During switch to new phone vendor the existing provider increased rates by 300 percent. This has been addressed and going forward prices are within expectations. Uniforms – Large order for uniforms placed at the beginning of the fiscal year. Should balance out as the year progresses. Oil. truck tires and fire inspector car/equipment are all over significantly by a percentage, but not much by dollars amounts. Normal one-time purchases to cover operational needs. Recruiting & Testing – Over budget due to entry level physicals for several new staff. POLICE: (Department Head: Shawn Burke) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): The Q2 data reflects anticipated expenses and revenue given the current operations. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): The department transitioned pistol platforms in Q2. This opportunity provides all officers with the same pistol, this enhances interoperability and inclusivity. For the first time in a decade all officers, despite their size or gender, will carry the same pistol. INDIVIDUAL BUDGET LINES - REVENUES AND EXPENSES (consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): Revenues: The used car market has been strong; the sale of cruiser line confirms this market trend. SHARP / Off Duty Police – Officers have worked more voluntary overtime which is paid via grant or by outside contract, e.g. security at the mosque. Parking Tickets – greater than expected compliance with tickets issued for violations. Bullet proof vest grant – the FY 24 grant was awarded to the Department. Expenditures: Traffic Unit Supplies / Traffic Safety Grant – The department has acquired the budgeted items; renewed the data capture contract for the speed detection trailer and investment in new radar technology for speed enforcement. Tires – The department purchased the snow tires needed for the fleet. Dues and Subscriptions – The department has paid for half of the subscriptions we rely on each year. Body Worn Cameras – The department paid the annual contract fee for the Axon suite of services; body worn cameras, cruiser cameras, cloud-based storage, electronic control weapons. Animal Control Contracts – Officers seized six dogs during the course of an animal neglect investigation in September. The dogs were held at our contract vendor while the Court adjudicated the forfeiture proceedings. In total, kennel costs for the six dogs amounted to $10,000. The Court did impose restitution, the likelihood of that being collected is low. The department anticipates this line being over spent given our animal control officer contract obligations. Vehicles and Equipment – The department purchased and deployed two hybrid patrol cars. The department also lost a cruiser in a collision which has been replaced, the insurance payment for the total cruiser is not reflected in the line. PUBLIC WORKS – HIGHWAY: (Department Head: Tom DiPietro; Fund Manager: Adam Cate) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): Overall, Highway division expenditures stand at 43.0% spent at the midway point of the fiscal year. Individual line items are generally spent at +/- 50%. The Highway revenue budget stands at 36.4% collected. Highway revenues are typically collected in quarters 3 and 4 of the fiscal year, during the beginning of “construction season”. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): The Dorset Street Signals Project represents the largest amount of dollars to be spent in the Highway budget. The project should reach substantial completion in FY24 Q3. Due to necessary items missing from the final plans, project timeline extensions, and the fact that existing sleeves/conduit that were assumed available for project use were insufficient, it is anticipated that this project will exceed the proposed budget by ~$450,000 to $500,000. The DPW Garage Expansion project is just getting underway, with expenditures for engineering and site work to be accumulated in FY24 quarters 3 and 4, with completion in FY25. An RFP for Ash Tree Planting / Emerald Ash Borer treatment was released in FY24 Q3, with work to follow in the third and fourth quarter of FY24. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): The Vehicle Replacement line item shows as generally unspent, but we recently took delivery of two new F350 trucks. We have three more vehicles ordered with anticipated delivery prior to the end of FY24. We anticipate that this line item will be fully spent this year. Tree Care is significantly underspent currently. There has only been one contracted tree removal so far in FY24. We anticipate that this line item will be spent before the end of the fiscal year. Road striping work will be bid in FY24 Q3 and spent before the end of the fiscal year. School Bus Parts appear largely unspent, which is due to a change in how bills are processed. All school bus invoices are now going directly to the school. PUBLIC WORKS – WATER QUALITY: (Department Head: Tom DiPietro; Fund Manager: Bob Fischer) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): Overall, Water Quality division expenditure stand at 25.0% spent. At this time, there are a few significant budget line items that have not been spent including the loan for Airport Parkway, payment to the highway division for wastewater collection system maintenance, and work related to the Bartlett Bay wastewater facility refurbishment project. We expect these line items to be fully expended this fiscal year. When these costs are added to the total expenditures, the wastewater budget is ~55%, which is what would be expected for this point in the fiscal year. The Water Quality revenue budget stands at 47.96%. We anticipate finishing the year with slightly more revenue than projected due to receipt of connection fees beyond what was anticipated. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): The Bartlett Bay wastewater facility refurbishment projects continue to progress. Final engineering work is underway and geotechnical data has been collected. The Airport Parkway wastewater treatment solids handling project is just beginning. Additional expenditures are anticipated in the third and fourth quarter of FY24. The Queen City Park pump station project has not yet begun final engineering. We anticipate award of a contract in the third quarter of FY24. The Industrial User Survey has entered phase 2, which comprises of a more in depth survey of approximately 180 businesses that have been highlighted as having possible impacts above residential or different that residential users. The wastewater division received a grant to improve security at various critical facilities. The grant paperwork is under Architectural Review by VT Homeland Security. We anticipate completing work on this project before the end of the fiscal year. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): Landfill Engineering is approximately $7,000 over budget due to the specialized pump failing and a new pump being purchased for approximately $11,000. Pumpstation supplies are at 87% due to the purchase of two pumps necessary to replace those that have failed. PUBLIC WORKS – DRINKING WATER: (Department Head: Tom DiPietro; Fund Manager: Jay Nadeau) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): The second quarter Drinking Water budget indicates a net revenue over expenditures of approximately $95,000. Water Sales, Investment Interest, and Connection and Allocation Fees are ahead of projections for the fiscal year’s mid-point. Many projected expenses occur in the latter part of the fiscal year. This includes things like Debt Service payments and System Improvements. Through the second quarter, expenses are below expected half-year projections. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): The EPA required Lead Service Line Inventory program is well underway, With MSK Engineers and water division staff performing the required incoming service line observations. The meter upgrade program also continues and upgrade to the radio read system is over 95%. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): Interest Revenue is considerably higher than anticipated thanks to banking rate increases. Although not a significant concern at this time, Equipment Rental fees could increase depending on the number of water breaks we experience over the course of the winter and spring. PUBLIC WORKS – STORMWATER: (Department Head: Tom DiPietro; Fund Manager: Marisa Rorabaugh) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): At of the end of FY24 Q2, Stormwater Utility expenditures stand at 26.69% spent. This is largely due to the Stormwater Capital Projects budget line standing at 17.82% spent. The overall revenue received stands at 30.36% received. This is largely due to the Intergovernmental Revenue line standing at 0.07% received. Once we begin construction of capital projects in the third quarter of FY24 we expect to make these expenditures and request reimbursement of grants associated with this work. It is anticipated that both of these line items will finish at, or slightly below projected values. Our Stormwater Utility Fee revenue is on track, standing at 43.35% received at the end of Q2. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): Construction of the Kennedy Drive Pond 2 retrofit was completed in the second quarter of FY24. This project was constructed using $253,616 in grant funding from the Vermont Agency of Transportation. Grant reimbursement will be requested in Q3. The Stormwater division was awarded $748,251 in additional grant funding though the MS4 Community Formula Grant Program. Final grant agreement paperwork was signed in Q2. The timeline for expenditure and receipt of reimbursement of these funds is not yet determined. More information will be available before the end of the fiscal year. The City received a grant from the Lake Champlain Basin Program for $200,000 for the upgrade of the Irish Farm Neighborhood stormwater system. The final grant agreement paperwork will be signed in Q3. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): Capital projects have only incurred $357,327 in expenses, out of a total FY24 budget of $2M, or 17%. Construction will pick up in the spring and summer (Q3 and Q4). The Storm System Maintenance Material line item was at 11.29% expended at the close of Q2. We are anticipating a large expenditure in Q3 and Q4 due to a failing culvert that has been recently identified and needs immediate repair. It is likely that this line item will be exceeded this fiscal year. Administrative Services and Billing Payment to CWD account for $67k and $73k of total expenditures from the Stormwater budget. These transfer payments will be made later in FY24. Intergovernmental Revenue is sitting at 0.7% of the budget received at the end of Q2. This is due to the timing of grant reimbursements. PUBLIC WORKS – PENNY FOR PATHS: (Department Head: Tom DiPietro; Fund Manager: Erica Quallen) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): The Penny for Paths fund has progressed as expected in FY24 Q2. One project was completed, four projects are underway, and one is under RFP development to begin in Q3. The Dorset Street Path project has experienced an extended right-of-way phase. Ongoing negotiations with property owners will lead to the project timeline getting pushed out. Right of way payments to property owners will occur later than planned but are still anticipated to be paid primarily in FY24. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): The Williston Road Crosswalks project was completed, and final construction costs were $70,000 under budget. The Active Transportation Plan was kicked off in Q2 with the help of our consultant (VHB) and the Chittenden County Regional Planning Commission and will continue through Q2 of FY25. Penny for Paths will be supporting the Planning & Zoning Consulting line with roughly $5,000 to pay for the 20% match. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): The largest items paid in FY24 Q2 were to Don Weston Excavating and these were for the Williston Road Crosswalks. Approximately $100,000 will be reimbursed from VTrans by the end of FY24. PUBLIC WORKS – OPEN SPACE FUND: (Department Head: Tom DiPietro; Fund Manager: Erica Quallen) OVERALL SUMMARY (provide a brief summary of how your department ended the quarter/year compared to budget projections): The Open Space Fund has had very limited spending in FY24 Q2. The two projects underway (Hubbard RNA Path and Red Rocks Trail and Stormwater Improvements) are in the final stages of design and permitting before construction in FY24 Q4 and FY25 Q1 – Q2. KEY HIGHLIGHTS (showcase any highlights on major projects/accomplishments your department has done during the quarter/year, particularly those included in the year’s budget presentation to Council): Following changes to the Hubbard RNA project scope, the consolidated consulting team has continued the design and is preparing final contract plans to be put out to bid in FY24 Q3. The Red Rocks project received its state wetlands permit in FY24 Q2 and is being finalized with Act 250 before it can be put out to bid. INDIVIDUAL BUDGET LINES: REVENUES AND EXPENSES consider which surpluses and overages might “jump off the page” for a reader, please provide a brief narrative/explanation for each): There were no unexpected or large expenses that occurred in FY24 Q2 from the Open Space Fund. The primary expenses were to the design consultant for the Hubbard RNA path and parking lot design. LOAN AGREEMENT Vermont State Revolving Fund Loan RF1-354-2.0 Loan Amount: $986,800.00 1. City of South Burlington, the Municipality, hereby certifies to the Vermont Municipal Bond Bank (“Bond Bank”) that: (a) It will secure all state and federal permits, licenses and approvals necessary to construct and operate the improvements to be financed by the Loan (the “Project”), if any, as described in Exhibit A; (b) It has established, or covenants with the Bond Bank to establish, by ordinance, rule or regulation, a rate charge or assessment schedule which will generate annually sufficient revenue to pay: (i) Principal, administrative fees and interest of the Municipal Note, as the same becomes due; and (ii) reasonably anticipated cost of operating and maintaining the improvements to be financed by the Loan, if any, and the system of which is a part; (c) It has duly established a fund under Title 24 of the Vermont Statutes Annotated, or by other means permitted by law which, for so long as the Municipal Note shall remain outstanding, shall be maintained and replenished from time to time, and used solely to repair, replace, improve and enlarge the improvement to be financed by the Loan, if any. 2. The Municipality shall make funds sufficient to pay the principal, administrative fees and interest as the same matures (based upon the Maturity Schedule appended hereto as Exhibit C) available to the Bond Bank at least five business days prior to each principal payment date. 3. The Bond Bank and Municipality agree that Loan proceeds will be paid to the Municipality as Project costs are incurred and paid by the Municipality over the course of the Project, but in no event shall payments be made more often than monthly, and only on Municipality’s certification, through its authorized representative, that such costs have been paid. 4. The Municipality is obligated to make the principal, administrative fee and interest portion of the Municipal Note payments scheduled by the Bond Bank on an annual basis. The Municipality may prepay the Loan at its option without penalty. 5. The Municipality shall be obligated to inform in writing to the Bond Bank, or such agent designated by the Bond Bank, at least thirty days prior to each principal payment date of any changes to the name of the official or address to whom invoices for the payment of principal, administrative fees and interest should be sent. 6. The period of performance for this agreement begins upon execution and ends five years after execution. 7. Notwithstanding paragraph 14 hereof, prior to payment of the amount of the Loan, or any portion thereof, the Bond Bank shall have the right to cancel all or any part of its obligations hereunder and after payment of any portion thereof to require a refund of amounts paid if: (a) Any representation made by the Municipality to the Bond Bank in connection with its application for a loan or additional loans shall be incorrect or incomplete in any material respect; or (b) The Municipality has violated commitments made by it in its application and supporting documents or has violated any of the terms of this Loan Agreement. 8. The Municipality shall at all times comply with all applicable federal and state requirements pertaining to the Project, including but not limited to requirements of Federal Clean Water Act, Title 24 of the Vermont Statutes Annotated, and the list of Federal Laws and Authorities included as Exhibit B. The enumeration of the Federal Laws and Authorities in Exhibit B shall not be construed as a waiver by the Municipality of any exemption or exception, jurisdictional or otherwise. 9. If any provisions of this Loan Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such provision shall not affect any of the remaining provisions of this Loan Agreement and this Loan Agreement shall be construed and enforced as if such invalid or unenforceable provision had not been contained herein. 10. This Loan Agreement may be executed in one or more counterparts, any of which shall be regarded for all purposes as an original and all of which constitute but one and the same instrument. Each party agrees that it will execute any and all documents or other instruments, and take such other actions as are necessary, to give effect to the terms of this Loan Agreement. 11. No waiver by either party of any term or condition of the Loan Agreement shall be deemed or construed as a waiver of any other terms or conditions, nor shall a waiver of any breach be deemed to constitute a waiver of any subsequent breach, whether of the same or of a different section, subsection, paragraph, clause, phrase, or other provision of this Loan Agreement. Any delay in exercising rights or requirements of the Loan Agreement does not constitute a waiver of such rights or requirements. 12. The Municipality agrees to indemnify and hold the Bond Bank, the state, its officials, agents, and employees harmless from and against any and all claims, suits, actions, costs, and damages resulting from the negligent performance or non-performance by the Municipality or any of its officials, agents, or employees of the Municipality's obligations under this Agreement, as it may be amended or supplemented from time to time. It is further understood that such indemnity shall not be limited by an insurance coverage. 13. The Municipality agrees that the Loan will be adjusted upon final audit to an amount equal to or less than the project costs determined eligible by the Department of Environmental Conservation and recommended to the Bond Bank for loan participation. 14. The Municipality agrees that if actual final eligible costs are less than the amount paid under the Loan Agreement, repayment of the excess funds will be made within sixty days of the request made by the Department of Environmental Conservation. 15. Increases, amendments, or modifications to the project during construction will be processed for record keeping purposes only, except for the addition of major approved Project Elements, Exhibit A. The Loan Agreement will also be amended upon completion of the project based upon final audited eligible costs, and any increases in the Loan will be made contingent upon availability of funds. All Project records will be retained by the Municipality and made available for state inspection upon request for three years after Project completion or until any audit questions have been resolved, whichever is later. 16. The Municipality will obtain flood insurance for any insurable portion of the Project. 17. The Municipality agrees to use the loan proceeds solely for the project for which the loan is made and any approved amendments thereto. The Municipality further agrees to make prompt payment to the contractors and to apply any interest received to the Project. Once payment has been made to contractors, the applicant shall submit a payment request to the Department of Environmental Conservation (DEC). Funds will be disbursed from Federal Award ID Number CS500001## (## equals last two digits of award year). Upon disbursement, DEC will notify the Municipality of the standard terms and conditions applicable based on the exact amount of federal funds disbursed and relevant capitalization grant being drawn down. Please see https://dec.vermont.gov/water-investment/water-financing/srf/reimbursement-help for the standard terms and conditions. If the foregoing link is not accessible, contact DEC for assistance. 18. The terms of this Loan Agreement shall be controlling over those of any prior Agreement with respect to this Loan Agreement. However, this Loan Agreement shall not otherwise supersede the terms of any other agreements between the Municipality and the State. 19. The Municipality agrees to furnish to the Bond Bank such financial statements as the Bond Bank may reasonably request, which statements and supporting records shall be prepared and maintained in accordance with Generally Accepted Accounting Principles (GAAP). 20. This agreement will be funded by approximately 80 percent federal funds. These funds are being awarded in accord with the Federal Clean Water State Revolving Fund, CFDA number 66.458, under the authority of the Environmental Protection Agency. This is not a research and development award. For any accounting year in which the Municipality expends Loan proceeds and other Federal funds of $750,000.00 or more from all Federal sources, the Municipality shall have an audit performed in accord with the Federal Single Audit Act and furnish a copy to the Vermont Department of Environmental Conservation within 9 months of the end of Municipality’s accounting period. 21. By acceptance of this Agreement, the Municipality agrees to complete a Subrecipient Annual Report as provided by the Department of Finance. Prior to submitting the Subrecipient Annual Report, the Municipality must review previous fiscal year disbursements from the Facilities Engineering Division to determine the actual amount of federal funds disbursed from the loan proceeds. The Subrecipient Annual Report must then be submitted to the State of Vermont Department of Finance within 45 days after its fiscal year end, informing the State whether or not a single audit is required for the prior fiscal year. If a single audit is required, the Municipality will submit a copy of the audit report to the Vermont Department of Environmental Conservation within 9 months of its fiscal year end. If a single audit is not required, only the Subrecipient Annual Report to the State Department of Finance is required. 22. The Municipality understands that the provisions of the Davis-Bacon Act, which is codified at Subchapter IV of Chapter 31 of Title 40 of the United States Code and U.S. Department of Labor Memorandum No. 208 (“Memorandum 208”), may apply to the Project, and the Municipality certifies and agrees that with respect to the Project, it has complied and will continue to comply with the requirements of the Davis-Bacon Act and Memorandum 208, as applicable. 23. The effective date of the Loan Agreement is the execution date of the General Obligation Note. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. Attest: VERMONT MUNICIPAL BOND BANK By: _______________________________ Secretary Executive Director Attest: City of South Burlington By: _______________________________ Clerk Chair of the Governing Body And by: ___________________________________ Treasurer Date____________________________ List of Loan Exhibits EXHIBIT A: Project description and conditions EXHIBIT B: List of Federal Laws and Authorities EXHIBIT C: General Obligation Note EXHIBIT D: Resolution and Certificate EXHIBIT A PROJECT DESCRIPTION AND CONDITIONS FOR THIS AGREEMENT Description: This loan is for the final design of a major refurbishment project for the Bartlett Bay Wastewater Treatment Facility and associated infrastructure. Conditions: 1) Repayment of this loan shall commence no later than five (5) years after the execution of the loan, unless the terms of the loan indicate the loan principal will be completely forgiven. 2) If the project funded with this loan proceeds to construction within five (5) years of loan execution and the construction project is funded with a SRF loan, the planning loan will be consolidated with the construction loan. 3) The engineer will meet with the Water Investment Division (WID) to present work summaries at 30% work completion, 60% work completion, and 90% work completion, or as otherwise directed by the WID engineer. Disbursements will not be made without each required meeting and disbursements above 90% of the loan amount will not be made until the final documents have been received, reviewed, and approved by WID. 4) After completion of planning, if project construction is to be fully funded by grants and/or loans administered by other federal, state, or local funding agencies (referred to as “alternative funding”), the Applicant will, within sixty (60) days of receiving alternative funds, repay the entire portion of the CWSRF planning loan. Under certain circumstances partial or full planning loan forgiveness may be allowable, such as when planning costs are not being paid for from alternative funds. 5) The Applicant shall, as a condition of the loan, provide the Department with a digitally formatted copy of any plan or surveys developed with funds awarded under the loan, if the Applicant or any subcontractor develops plans or surveys in digital format. By acceptance of the loan, the Applicant agrees to pass through this requirement to any subcontracts awarded and funded by the loan. This condition is included pursuant to Section 56 of Act 233 of 1994. Such digital formats are subject to the Federal Freedom of Information Act and the State Access to Public Records and Document Statute and, unless otherwise restricted, the Department will release copies of such information to the general public upon request. It shall be acceptable to submit read only copies or copies marked archival copies only. The Applicant, by acceptance of this loan agrees not to copyright any plans or surveys developed pursuant to this action. Acceptable electronic formats include pdf and pdf/A. EXHIBIT B LIST OF FEDERAL LAWS AND AUTHORITIES WHERE APPLICABLE ENVIRONMENTAL: • “American Iron and Steel” requirements of P.L. 113-76 the Consolidated Appropriations Act of 2014 • Archeological and Historic Preservation 16 USC §469a-1 • Bald and Golden Eagle Protection Act, 16 USC §668-668c • Clean Air Act, 42 USC §7401 • Coastal Barrier Resources Act, 16 USC §3501 • Coastal Zone Management 16 USC §1451 • Davis-Bacon Act (40 CFR '31.36(i)(5)) • Davis Bacon and Related Acts Wage Rate Requirements (29 CFR 5.5) • Endangered Species Act, 16 USC §1531 • Floodplain Management, Executive Order 11988, as amended by Executive Order 12148 • Protection of Wetlands, Executive Order 11990 (1977) as amended by Executive Order 12608 (1997) • Environmental Justice, Executive Order 12898 • Protection and Enhancement of the Cultural Environment, Executive Order 11990 (1977), as amended by Executive Order • Farmland Protection Policy Act, 7 USC §4201 • Fish and Wildlife Coordination Act, 16 USC §661 • Magnuson-Stevens Fishery Conservation and Management Act, 16 USC §1801 et seq. • Marine Mammal Protection Act, 16 USC §7703 et seq. • Migratory Bird Act 16 USC Chapter 7, Subchapter II: Migratory Bird Treaty • National Historic Preservation Act 54 USC § 300101 et seq. • Rivers and Harbors Act, 33 USC §403 • Safe Drinking Water Act, 42 USC §300f • Wild and Scenic Rivers Act 16 USC §1271 ECONOMIC: • Demonstration Cities and Metropolitan Development Act of 1966, PL 89-754 as amended • Section 306 of the Clean Air Act and Section 508 of the Clean Water Act, including Executive Order 11738, Administration of the Clean Air Act and the Federal Water Pollution Control Act with Respect to Federal Contracts, Grants, or Loans SOCIAL LEGISLATION: • Age Discrimination Act, PL 94-135 • Civil Rights Act of 1964, PL 88-352 • Disadvantaged Business Enterprise, 49 USC § 47113 - Minority and disadvantaged business participation • Equal Employment Opportunity, Executive Order 11264 • Women’s and Minority Business Enterprise, Executive Orders 11625 and 12138 • Section 13 of PL 92-500; Prohibition against sex discrimination under the Federal Water Pollution Control Act • Rehabilitation Act of 1973, PL 93-112 (including Executive Orders 11914 and 11250) MISCELLANEOUS AUTHORITY: • Executive Order 12549 - Debarment and Suspension • Trafficking and Violence Protection Act of 2000 (P.L. 106-386) • Uniform Relocation and Real Property Acquisition Policies Act of 1970, PL 91-646 • Signage requirements per 2015 EPA guidance • 2 CFR 200.216 and section 889 of Public Law 115-232, Prohibition of certain telecommunication and video surveillance services or equipment • Build America, Buy America (BABA) provisions of the Federal Infrastructure Investment and Jobs Act (IIJA) EXHIBIT C $986,800.00 UNITED STATES OF AMERICA STATE OF VERMONT City of South Burlington GENERAL OBLIGATION NOTE The City of South Burlington (hereinafter called the “Municipality”), a body corporate and a political subdivision of the State of Vermont, promises to pay to the Vermont Municipal Bond Bank, or registered assigns, the not-to-exceed sum of $986,800.00 with a preliminary interest at the rate of 0.00% per annum and with a preliminary administrative fee of 0.00%, subject to change based on final disbursed value, beginning on 1/1/2029 as follows: Loan Terms Loan Amount:$986,800.00 Loan Term Years15 Interest rate:0.0000%Administrative Fe0.0000% RepaymentDate PaymentNumber PrincipalDue PrincipalPayment PrincipalForgiven InterestPayment AdministrativeFees TotalPayment 1/1/2029 1 986,800.00 59,120.00 100,000.00 0.00 0.00 59,120.00 1/1/2030 2 827,680.00 59,120.00 0.00 0.00 0.00 59,120.001/1/2031 3 768,560.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2032 4 709,440.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2033 5 650,320.00 59,120.00 0.00 0.00 0.00 59,120.001/1/2034 6 591,200.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2035 7 532,080.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2036 8 472,960.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2037 9 413,840.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2038 10 354,720.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2039 11 295,600.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2040 12 236,480.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2041 13 177,360.00 59,120.00 0.00 0.00 0.00 59,120.001/1/2042 14 118,240.00 59,120.00 0.00 0.00 0.00 59,120.00 1/1/2043 15 59,120.00 59,120.00 0.00 0.00 0.00 59,120.00 886,800.00 100,000.00 0.00 0.00 For planning purposes only. Figures subject to change based on actual disbursements. EXHIBIT C This Note is payable in lawful money of the United States at M&T Bank in the City of Burlington, State of Vermont. Repayment terms shall comply with 24 V.S.A. Chapter 120, §4755 which prohibits deferral of payment. Final payment of this Bond shall be made upon surrender of this Bond for cancellation. This Note is issued by the Municipality for the purpose of financing design of infrastructure improvements under and by virtue of Title 24, Vermont Statutes Annotated, and a vote of the governing body of the Municipality duly passed on 11/7/2023. This Note is transferable only upon presentation to the Treasurer of the Municipality with a written assignment duly acknowledged or proved. No transfer hereof shall be effectual unless made on the books of the Municipality kept by the Treasurer as transfer agent and noted hereon by the Treasurer with a record of payments as provided hereon. It is hereby certified and recited that all acts, conditions and things required to be done precedent to and in the issuing of this Note have been done, have happened, and have been performed in regular and due form, as required by such law and vote, and for the assessment, collection and payment hereon of a tax to pay the same when due the full faith and credit of the Municipality are hereby irrevocably pledged. IN TESTIMONY WHEREOF, the Municipality has caused this Note to be signed by its Treasurer, and a majority of its Selectboard and its seal to be affixed hereto. City of South Burlington By: _____________________________ ________________________________ ________________________________ ________________________________ ________________________________ Majority of its Governing Body Date____________________________ ________________________________ Treasurer EXHIBIT C $986,800.00 City of South Burlington GENERAL OBLIGATION NOTE CERTIFICATE OF REGISTRATION It is hereby certified that this Note is a fully registered Note, payable only to the holder of record as appears of record in the office of the Treasurer of the issuing Municipality. This Note may be transferred by presentation of the same with an assignment in writing signed by the registered holder. Presentation shall be made to the Treasurer of the Municipality at his office and he shall record such transfer in his records and on the Note. The name and address of the original registered owner of this Note is Vermont Bond Bank, 100 Bank St, Suite 401, Burlington, VT 05402. . ___________________________ Treasurer EXHIBIT D RESOLUTION AND CERTIFICATE (General Obligation) (Vermont Clean Water State Revolving Fund) WHEREAS, at meetings of the municipal legislative body of the City of South Burlington (herein called the “Municipality”) at each of which all or a majority of the members were present and voting, which meetings were duly noticed, called and held as appears of record, it was found and determined that the public interest and necessity required certain public wastewater improvements described in Exhibit A, and it was further found and determined that the cost of making such public improvements would be too great to be paid out of ordinary annual income and revenue, and that a proposal for providing such improvements and the issuance of bonds of the Municipality to pay for its share of the cost of the same shall be submitted to the legal voters at meetings thereof, and it will be ordered, all of which action will be hereby ratified and confirmed; and WHEREAS, the Municipality has applied for financial assistance in planning for the authorized improvements which application has been approved by the Department of Environmental Conservation and the Vermont Municipal Bond Bank, as evidenced by the Funding Application Approval, the terms and conditions of which are found in Exhibit A; and WHEREAS, pursuant to powers vested in them by law the said governing board is about to enter into a Loan Agreement on behalf of the Municipality with the Vermont Municipal Bond Bank respecting a Loan from said Bank in the amount of $986,800.00 to be discounted by the amount of up to $100,000, repayable with interest at the rate of 0.00% per annum, together with an administrative fee of 0.00%. AND WHEREAS, the Note to be given by the Municipality to the Vermont Municipal Bond Bank at the time of receiving the proceeds of said Loan shall be substantially in the form found in Exhibit C; THEREFORE, be it resolved that the Governing Body proceed forthwith to cause said Note to be executed and delivered to the Vermont Municipal Bond Bank upon the price and terms stated, and be registered as the law provides; and BE IT FURTHER RESOLVED, that the Note when issued and delivered pursuant to law and this Resolution shall be the valid and binding obligation of the said Municipality, payable according to law and the terms and tenor thereof from unlimited ad valorem taxes on the grand list of taxable property of said Municipality as established, assessed, apportioned and provided by law; and BE IT FURTHER RESOLVED, that in addition to all other taxes, there shall annually be assessed and collected in the manner provided by law each year until the Note, or any bond or bonds issued to refund or replace the same, is fully paid, a tax, charge or assessment sufficient to pay the note and bond or bonds as the same shall become due; and BE IT FURTHER RESOLVED, that execution of the above-referenced Loan Agreement between the Municipality and the Vermont Municipal Bond Bank is hereby authorized, the presiding officer of the legislative body and Treasurer of the borrower being directed to execute said Loan Agreement on behalf of the Municipality and the legislative branch thereof; and EXHIBIT D BE IT FURTHER RESOLVED, that the Municipality expressly incorporates into this Resolution each and every term, provision, covenant and representation set forth at length in Exhibit A to be delivered in connection with the issuance and sale of the Note, execution and delivery of each of which is hereby authorized, ratified and confirmed in all respects, and the covenants, representations and undertakings set forth at length in said Loan Agreement are incorporated herein by reference; and BE IT FURTHER RESOLVED, that all acts and things heretofore done by the lawfully constituted officers of the Municipality, and any and all acts or proceedings of the Municipality and of its Governing Body, in, about or concerning the improvements hereinabove described and of the issuance of evidence of debt in connection therewith, are hereby ratified and confirmed. BE IT FURTHER RESOLVED, that in connection with the pending sale of the Note in the face amount of $986,800.00 to the Vermont Municipal Bond Bank, execution and delivery of the Note, this Resolution Certificate, Loan Agreement and incidental documents, all attached hereto, are authorized; and BE IT FURTHER RESOLVED, that M&T Bank in the City of Burlington, Vermont, is hereby designated the Municipality's paying agent with respect to the Note and the Loan Agreement. And we, the undersigned officers, as indicated, hereby certify that we as such officers have signed the Note payable as aforesaid, and reciting that it is issued under and pursuant to the vote herein above mentioned, and we also certify that the Note is duly registered in the office of the Treasurer of the Municipality as prescribed by law. And we, the said officers of the Municipality, hereby certify that we are the duly chosen, qualified and acting officers of the Municipality as undersigned; that the Note is issued pursuant to said authority; that no other proceedings relating thereto have been taken; and that no such authority or proceeding has been repealed or amended. We further certify that no litigation is pending or threatened affecting the validity of the Note nor the levy and collection of taxes, charges or assessments to pay it, nor the works of improvement financed by the proceeds of the Note, and that neither the corporate existence of the Municipality nor the title of any of us to our respective offices is being questioned. EXHIBIT D ATTEST: City of South Burlington By: ____________________________Clerk _______________________________ _______________________________ _______________________________ _______________________________ Majority of its Governing Body And By: _______________________________ Its Treasurer February 20, 2024 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV Marcy Christian, Grants Manager VT Housing and Conservation Board 58 East State Street Montpelier, VT 05602 Dear Ms. Christian, It is our pleasure to submit this letter of support for the South Burlington Land Trust’s application to the Vermont Housing and Conservation Board for funds to conserve over 32 acres of natural resource land in South Burlington. The vision for this property and the conversation of its natural resource land aligns perfectly with our City’s Comprehensive Plan, our Land Development Regulations, and our Climate Action Plan. Environmental experts have recommended conserving this property in order to protect and preserve its natural resources as well as to keep in place its ability to help mitigate the impacts of climate change. Past studies of rural areas in South Burlington have identified this land and the lands surrounding it as rich in natural resources and have advocated for their protection. More recently, during a period of Interim Zoning, three additional studies confirmed these past assessments and recommendations. Specifically, the City’s Interim Zoning Open Space Committee report concluded that the Long land contained all of the environmental categories assessed: riparian connectivity, Class 2 wetlands and source protection, large habitat block, grasslands, large forest block, view shed, prime agricultural soils and farmland. The City-commissioned consultant, Arrowwood Environmental, reported that this area was the highest ranked parcel out of the 26 forest blocks that they evaluated. And an economic evaluation company, Earth Economics, reported that the value of the Long land’s eco-services would save the city $11 million over a 20-year period in services they would have otherwise to supply. We trust the integrity of the South Burlington Land Trust to see this project through to completion, and, if appropriate, to retain a role in ensuring the land is maintained in accordance with easement conditions. Sincerely, • • • • • o o • • Recommendation/Motion Pursuant to the City’s Charter (24 App. VSA §106) to open the public hearing, the Ordinance must either be read in full or, by vote of a majority of the Council, the Ordinance may be read by title. Accordingly, the Administration recommends the following: 1) That the Council vote to open the public hearing by reading the title of the Ordinance (“South Burlington Residential Registry Ordinance”) 2) That the Council hold a public hearing where all persons interested be given the opportunity to be heard. 3) Following closure of the public hearing, make the following motion: “Move that the South Burlington City Council approve and pass the South Burlington Residential Registry Ordinance.” 4) Following the passage of the Ordinance, it is recommended that the Council: “Move to approve the Resolution Establishing Registration Fees and Inspection Cycles for the Residential Rental Registry in the City of South Burlington.” 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV Public Hearing Notice City of South Burlington February 20, 2024 at 7:00 p.m. Adoption of Residential Rental Registry Ordinance PLEASE TAKE NOTICE that on Tuesday, February 20, 2024 at 7:00 PM, the City Council will hold a public hearing and second reading on possible adoption of the City of South Burlington Residential Rental Registry Ordinance. The hearing will be held in person and remotely via GoToMeeting. Participation options: In Person: City Hall Auditorium, 180 Market Street Interactive Online: https://meet.goto.com/SouthBurlingtonVT/citycouncilmeeting02-20-2024 Telephone: (646) 749-3122; Access Code: 214-280-381 Following the public hearing and second reading, the City Council may take action on final passage of the Residential Rental Registry Ordinance. The Residential Rental Registry Ordinance contains two major components: 1) A rental registry, including an inspection program, for the majority of rental units in the City; and 2) regulations relating specifically to short term rentals. This Ordinance will require all rental units in the City of South Burlington to annually register with the City, pay a registration fee and be subject to inspection to ensure compliance with City Fire Safety and Building Codes and other City Ordinances. It will also only permit Short term rentals in owner-occupied units, accessory dwelling units, and primary-residence tenant-occupied units. Short term rentals in existence prior to the effective date of the Ordinance that don’t meet these requirements will be permitted to operate for four years following passage. Violations of the Ordinance will be subject to fines and other authorized relief, including suspension or revocation of rental registration. The proposed Residential Rental Registry Ordinance is available for public inspection at the Office of the City Clerk, City Hall, 180 Market Street, and on the city website at www.southburlingtonvt.gov. Helen Riehle, City Council Chair January 16, 2024 1 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 Residential Rental Registry Ordinance Adopted: ___________________, 2024 2 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 Table of Contents 1. Purpose and Authority Page 3 2. Definitions Page 3 3. Registration Required Page 5 4. Registration Fees Page 8 5. Requirements of Short-Term Rental Units Page 9 6. Violations Page 10 7. Enforcement Page 11 8. Civil Penalty; Waiver Fees Page 11 9. Other Relief Page 12 10. Severability Page 13 11. Effective Page 13 3 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 The Council of the City of South Burlington hereby Ordains: 1. Purpose and Authority. This Ordinance is enacted to promote the public health, safety and welfare of the City under the authority granted to it by 24 V.S.A. §2291 and Sections 103-104 of the South Burlington City Charter. Due to an ongoing increase in the number of rental dwelling units in the City of South Burlington, continued and projected population growth in the City, the aging of some of the City’s housing stock, and the existing and potential future conversion of permanent housing into short-term accommodations, the Council hereby finds that the regulation of rental dwelling units is necessary to maintain and protect the public health, safety and welfare of the City and its residents. This Ordinance is intended to provide a process: • through which dwelling units used for rental housing must be registered with the City of South Burlington for use as long-term or short-term rentals; • to disclose the ownership of such rental properties; • to regulate the renting of dwelling units within the City; • to make owners and persons responsible for the maintenance of property more accessible and accountable with respect to the premises; • to ensure that housing units remain available for rent to those who reside or seek to reside within the City; • to ensure that the City is not unduly impacted by the operation of short-term rentals; and • to ensure that owners and tenants of rental dwelling units comply with all building, health and fire safety codes and ordinances adopted by the City of South Burlington. This Ordinance shall constitute a civil ordinance within the meaning of 24 V.S.A. Chapter 59. 2. Definitions. The following words, terms and phrases, when used in this Ordinance, shall have the meaning ascribed to them in this section, except where the context clearly indicates a different meaning: Existing Short Term Rental shall mean a Short Term Rental Unit that is neither Owner Occupied nor Tenant Occupied and was established and utilized as a Short Term Rental, continuously maintained under the same ownership, prior to the effective date of this Ordinance and such use has not been discontinued for six or more consecutive months. 4 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 Long Term Rental shall mean the letting of a Rental Unit in whole or in part to the same tenant for thirty (30) or more consecutive days. Multi-Unit shall mean a single, detached building in common ownership interest containing more than one (1) residential or commercial unit. Owner-Occupied shall mean a Rental Unit owned and occupied by the registrant as his or her primary residence. An accessory dwelling unit as defined in the City’s Land Development Regulations, is considered a separate dwelling unit from an owner-occupied primary residence for purposes of short-term rental registration and regulation. Owner shall mean each individual person or entity including, without limitation, all partners, officers, or trustees of any real estate trust; all members or managers of a limited liability company; and all officers and directors of a corporation; that is the record owner of a building or property. Primary Residence shall mean the dwelling in which a person resides as their legal residence for more than one half of a year and registers as his or her address for tax and government identification purposes. Registrant shall mean the owner of a Rental Unit, or a tenant, with permission from the owner, seeking to register a Rental Unit. Rental Unit is any residential structure, furnished house, condominium, or other dwelling room or self-contained dwelling unit, or portion thereof, that is rented or available for rent to any individual or individuals for any length of time. Any portion of a dwelling unit or accessory dwelling unit that is rented or available to be rented to an individual or individuals who are not the owner or owners shall be considered a Rental Unit. The following are not to be considered Rental Units for the purpose of this Ordinance: • As defined by the City’s Land Development Regulations: motels, hotels/inns, bed and breakfasts, group homes, dormitories, continuum of care facilities, skilled nursing facilities, extended stay hotels, schools, and hospitals; • As defined by 24 V.S.A. §4412(11): accessory on-farm businesses; • As defined by 24 V.S.A. §4303(40): Emergency shelters; • A homeshare or roommate situation in an owner-occupied Primary Residence rented to the same tenant or tenants each for thirty (30) or more consecutive days and consisting of no more than one or two rooms in the Primary Residence in which the tenant or tenants have access to the same shared living and kitchen space as the primary resident owner and other occupants of the unit; or • Other facilities that, in the sole discretion of the City Building Inspector, share similar characteristics with those listed in the three bullets above. 5 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 Short Term Rental is a Rental Unit rented to the transient, traveling, or vacationing public for a period of fewer than 30 consecutive days and for more than 14 days per calendar year. Tenant-Occupied shall mean a Rental Unit in which the registrant is not the record owner of the Rental Unit, but lawfully occupies the Rental Unit as his or her primary residence. 3. Registration Required. (a) Registration of Rental Units. 1) All Rental Units must be registered in accordance with this Ordinance by April 1st of each year; Rental Units entering the rental housing market must be registered and pay the appropriate fee prior to their listing as an available Rental Unit or prior to their first occupancy, whichever is earlier. Registration must be renewed annually, on or before April 1st, including updating all changes in previously submitted registration information. 2) If a Rental Unit is rented as both a Short Term and Long Term rental, it must be separately registered for each type of rental. 3) Each owner, manager, and person/entity otherwise responsible for the Rental Unit, such as a property manager, shall be obligated under this Ordinance. Any new owner, manager, or responsible person/entity must apply to register within thirty (30) days of purchase of the Rental Unit or transfer of management or responsibility. New owners or tenants applying to register an existing Short Term Rental Unit are considered new applicants and shall be subject to all limitations and regulations in effect at the time of the application. 4) A Rental Unit shall not be considered registered unless and until the registrant has submitted a complete application together with all information and fees required by this Ordinance, to the satisfaction of the City’s Building Inspector, or designee. 5) As a condition of registration, all owners and/or registrants must allow onsite inspections by the City of their property including, without limitation, all Rental Units. Inspections will be performed in accordance with the Inspection Cycle adopted by Resolution of the City Council. All units of a multi-unit building owned by the same property owner are subject to inspection, including an owner-occupied unit that is not a Rental Unit, if one or more units in the building are Rental Units. Likewise, all areas of an owner-occupied dwelling are subject to inspection if any portion of the owner-occupied dwelling is a Rental Unit. The purpose of this inspection is to ensure compliance with all building 6 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 and fire safety codes, ordinances, and regulations adopted by the City of South Burlington and safety of the Rental Unit. (b) Information/Documentation Required. Rental Unit registration must be completed on forms supplied by the City’s Building Inspector or their designee and must provide, at a minimum, the following information: 1) The address of the property; 2) The number of dwelling units at that address; 3) The number of Rental Units at that address; 4) The number of sleeping rooms in each Rental Unit; 5) The number of parking spaces that are dedicated for the Rental Units at the property; 6) The name, address, phone number, and email address of the property owner, and if the owner is a corporation, the registered corporate agent and the president of the corporation and their name and address, and if the owner is a partnership, the registered partnership agent, and the names and addresses of the general partners; 7) The name, address, phone number, and email address of: a. Any local (within Chittenden County) managing agent. All owners or Registrants who do not live within Chittenden County are required to designate a managing agent located in Chittenden County who is empowered to represent the owner or registrant in matters concerning compliance with this chapter; b. An emergency contact for this property. All properties must have an emergency contact within Chittenden County; (c) Additional Information required for Short Term Rentals. To Register a Short Term Rental, the requirements of this subsection must also be met. A Short Term Rental shall not be considered registered unless and until all the registration requirements of this Ordinance have been met to the satisfaction of the City’s Building Inspector, or designee, and a Short Term Rental registration number has been issued. 1) A Short Term Rental Registrant must provide at a minimum the following information and any other information requested to the City’s Building Inspector or their designee: a. A Short Term Rental application. 7 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 b. The number of whole unit or partial unit Short Term Rentals within the building, or in the case of multiple buildings on a parcel of land, on the entire lot. c. Whether the Rental Unit is Owner-Occupied, Tenant-Occupied, an accessory dwelling unit, or an Existing Short Term Rental, and: i. For Short Term Rental Units that are Owner Occupied or an accessory dwelling unit, the owner must provide a primary residence affidavit, on forms provided by the City. The owner must also produce for review one of the following demonstrating residency at the owner-occupied unit or at the primary residence to the accessory dwelling unit: 1. Valid driver’s license or other state-issued identification; 2. Valid motor vehicle registration; 3. Proof of homestead exemption pursuant to 32 V.S.A. §5410; or 4. Other documentation proving primary residence to the satisfaction of the City’s Building Inspector. ii. For Short Term Rental Units that are Tenant-Occupied, the tenant must provide their name, address, phone number, email address, a primary residence affidavit, and a statement of permission by his/her landlord, both affidavits on forms supplied by the City. The tenant must also produce for review one of the following demonstrating residency at the Tenant-Occupied unit: 1. Valid driver’s license or other state-issued identification; 2. Valid motor vehicle registration; or 3. Other documentation proving primary residence to the satisfaction of the City’s Building Inspector. iii. For Existing Short Term Renal Units, in addition to all other requirements for Short Term Rentals, the Registrant must also provide: 1. Documentation establishing to the satisfaction of the City’s Building Inspector that the Rental Unit was established and utilized as a Short Term Rental prior to the effective date of this Ordinance; 2. Registrant and owner’s name, addresses, phone number, and email address; 8 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 3. An Existing Short Term Rental affidavit on a form supplied by the City identifying the owner of the Rental Unit and swearing that the Existing Short Term Rental Unit was established and utilized as a Short Term Rental Unit as of the effective date of this Ordinance and without discontinuance of use as a Short Term Rental Unit for a period greater than six months; and 4. Property Deed or other similar documentation establishing the identity of the current owner of the Rental Unit; and 5. Documentation establishing to the satisfaction of the City’s Building Inspector that the Rental Unit did not cease to be utilized as a Short Term Rental Unit for a period of time greater than six consecutive months. d. Proof of liability insurance required. At the time of registration, the Registrant must provide a certificate of insurance that expressly acknowledges that the property may be used for Short Term Rental business activity and evidencing (a) property insurance and (b) general liability insurance appropriate to cover the rental use in the aggregate of not less than $1 million or proof that the Registrant conducts rental transactions through a hosting platform that provides equal or greater coverage. Any such hosting platform-provided insurance carrier shall defend and indemnify the Registrant, as additional named insured, and any user in the building for any bodily injury and property damage arising from the rental. Once registered, the Registrant shall maintain the required insurances, or such greater amount as otherwise required by law, throughout the term of the registration. e. Proof of Vermont tax account for rooms & meals and/or sale tax purposes or proof that the Registrant conducts rental transactions through a hosting platform that pays all applicable rooms & meals and/or sale taxes on behalf of the Registrant. 2) Upon request by the City, at any time, all registrants and/or agents of Short Term Rental Units must provide the City with their registration information, rental history, and upcoming reservation information. Failure of Short Term Rental Unit owners, tenants, and/or their representatives to adequately respond to inquiries by the City within 10 business days from the date of the request shall be considered a violation under this Ordinance. (d) No registration under this Ordinance shall be transferrable or assignable. 9 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 4. Registration Fees. (a) Annual Registration Fee. Upon initial registration and by April 1st of each year, registrants shall pay the City a registration fee for each Rental Unit, in the amounts adopted by Resolution of the City Council. A Rental Unit shall not be considered registered unless and until this fee is paid in full. (b) Failure to renew a registration of a Rental Unit by April 1 shall result in the forfeiture of the right to renew the registration of that Rental Unit, and any subsequent application for the same Rental Unit shall be treated as a new application for registration. 5. Requirements of Short Term Rental Units. (a) Occupancy Limit. Overnight Short Term Rental guest occupancy in each Rental Unit will be limited to two (2) guests per bedroom or sleeping area plus no more than two (additional) guests. (b) Short Term rentals shall adhere to all City of South Burlington regulations and ordinances related to parking. (c) No individual or entity may register a Short Term Rental unless it is owner- occupied, tenant-occupied with permission of the owner, or an accessory dwelling unit. (d) An Existing Short Term Rental Unit that is not owner-occupied, tenant-occupied with permission of the owner, or an accessory dwelling unit is exempt from the requirements of Section 5(c), above, and may be registered as a Short Term Rental provided: i. Ownership of the Existing Short Term Rental Unit does not change. Once ownership of the Existing Short Term Rental is sold or transferred from the owner of the unit at the time the effective date of this Ordinance to a different entity or individual(s), the Rental Unit shall no longer be allowed to register as a Short Term Rental unless all other Short Term Rental Unit requirements of this Ordinance are met; and ii. The Existing Short Term Rental Unit is established and utilized as a Short Term Rental prior to and upon the effective date of this Ordinance; and iii. An Existing Short Term Rental shall not cease to be utilized as a Short Term Rental for a period of time greater than six consecutive months. If use of an Existing Short Term Rental Unit as a Short Term Rental is discontinued for six months or more, the Rental Unit shall no longer be allowed to register as a Short Term Rental unless all other Short Term Rental Unit requirements of this Ordinance are met. 10 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 iv. Sunset. Existing Short Term Rentals that meet the requirements of this Ordinance may continue to operate and be registered as a Short Term Rental until March 31, 2028. On April 1, 2028, the exception allowing for the operation and registration of Existing Short Term Rentals shall expire and from that point forward, all Existing Short Term Rentals must satisfy all of the requirements of Short Term Rental Units set forth in this Ordinance, including but not limited to Section 5(c), above. (e) Registrants shall comply with all applicable State laws and regulations regarding Short Term Rentals. (f) Short Term Rentals must be serviced and cleaned before each new guest arrives and guests must be provided with soap, clean linen, and sanitized utensils. (g) Registrants shall provide guests written documentation with the following information: 1) The name, phone number, and email of the Registrant and, if not the Registrant individually, an emergency contact within Chittenden County who is available at all times during a guest’s rental. 2) Contact information for the City Fire Marshal. 3) Written instructions on the location and use of fire extinguishers 4) Written instructions on emergency shut-off of heating systems and fuel burning appliances 5) A diagram identifying emergency egress routes 6) A copy of South Burlington’s Public Nuisance Ordinance. (h) No pets are permitted in any Short Term Rental unless guests provide proof of valid rabies vaccine and hosts provide information on the City’s leash and pick- up/disposal of pet waste requirements and the presence of ticks in Vermont. (i) Display of Short Term Rental Registration Number Required. Once registration is approved by the City, each Short Term Rental shall be given a registration number, which must be displayed in plain sight in the Rental Unit and in any and all advertisements for the Rental Unit. (j) Short-Term Rental guests shall not sublease, sublicense or assign all or any portion of the Short-Term Rental to another person during the rental period. (k) Parties, conferences, family reunions, weddings, fundraisers or similar gatherings that are reasonably foreseeable to involve an assemblage of vehicles or a greater number of persons than the maximum allowable number of short- term guests for the Rental Unit are prohibited to be conducted by Short-Term Rental guests during a Short-Term Rental. 6. Violations. Violations of this article include, but are not limited to: 11 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 (a) Any person, business entity, or other organization failing to timely register or renew the registration of a Rental Unit, including providing all required information and paying the required registration fee; (b) Any person, business entity, or other organization failing to timely file any required update to the registration; (c) Any person, business entity, or other organization failing to acquire and/or display the required Short Term Rental registration number; (d) Any person, business entity, or other organization providing false information with respect to registration. (e) Any person, business entity, or other organization renting any Rental Unit that is not registered under this article, advertising for rent such Rental Unit without registration, or permitting the occupancy of such premises without registration; (f) Failure of Short Term Rental Unit owners, tenants, and/or their representatives to adequately respond to inquiries by the City pursuant to Section 3(c)(3) within 10 business days from the date of the inquiry. (g) Failure to maintain a Rental Unit in compliance with all building, health and fire safety codes and ordinances adopted by the City of South Burlington. (h) Failure to allow an inspection of a Rental Unit by the City. (i) Failure to conspicuously display within each Short Term Rental Unit the current and valid name, address and phone number of the Short Term Rental operator (whether the owner, tenant, on-site manager, or property manager) and the City Fire Marshal. (j) Any sublease or sublicense of a Short Term Rental by a guest to another person during the rental period. (k) Any signs or other outside indications, other than on-site parking, that a property is used or occupied as a Short Term Rental. (l) Noise or unreasonably loud activities at a Short Term Rental, whether inside or outside, that violate the City’s Public Nuisance Ordinance. (m) Failure to abide by any other specific requirement of this Ordinance. 7. Enforcement. Any person who violates a provision of this civil ordinance shall be subject to: (a) Suspension or revocation of the Short Term Rental Unit registration for the violating Rental Unit. A Short Term Rental Unit that has had its registration either suspended or revoked may also be prohibited from renewing or registering the Rental Unit for a period of up to 12 months following the current registration expiration date. AND 12 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 (b) A civil penalty of up to $800 per day for each day that such violation continues. Each day the violation continues shall constitute a separate offense. The Building Inspector, City Fire Marshal, South Burlington Police Officers, South Burlington Zoning Administrator, and the South Burlington City Manager shall all be designated and authorized to act as Issuing Municipal Officials to issue and pursue before the Judicial Bureau, or other court having jurisdiction, a municipal complaint. 8. Civil Penalty; Waiver Fees. (a) Civil Penalty. An Issuing Municipal Official is authorized to recover civil penalties in the following amounts for each violation: (1) Operating a Rental Unit Without Authorization or Registration Number: $800 (2) All Other Violations: First Offense: $400 Second Offense: $600 Third Offense: $800 Fourth and Subsequent Offenses: $800 plus automatic revocation for twelve (12) months before a new Long Term or Short Term Rental Registration Application may be submitted. (b) Waiver Fee. An Issuing Municipal Official is authorized to recover waiver fees, in lieu of a civil penalty, in the following amount, for any person who declines to contest a municipal complaint and pays the waiver fee: (1) Operating a Rental Unit without authorization or registration number: $500 (2) All Other Violations: First Offense: $100 Second Offense: $250 Third Offense: $500 Fourth and Subsequent Offenses: $700 plus automatic revocation for twelve (12) months before a new Long Term or Short Term Rental Registration Application may be submitted. (c) Offenses shall be counted on a twelve (12) month basis beginning April 1 and ending March 31 of each year. An Issuing Municipal Officer shall have authority to issue a written warning, without recovering a waiver fee, for any 13 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 First Offense violation other than Operating a Rental Unit Without Authorization of Registration Number. In such instance, the written warning shall be counted as a First Offense for calculating annual offenses. 9. Other Relief. In addition to the enforcement procedures available under Chapter 59 of Title 24, the City is authorized to commence a civil action in the Civil Division of the Vermont Superior Court to obtain injunctive and other appropriate relief, to request revocation or suspension of any Long Term or Short Term Rental authorization or registration number on behalf of the City, or to pursue any other remedy authorized by law. 10. Severability. If any provision of this ordinance is deemed by a court of competent jurisdiction to be unconstitutional, invalid or unenforceable, that provision shall be severed from the ordinance and the remaining provisions that can be given effect without the severed provision shall continue in effect. 11. Effective Date. In accordance with South Burlington City Charter Section 108, this Ordinance shall take effect upon passage. However, in order to allow time for residents and property owners to become familiar with the requirements of this Ordinance, the prohibitions on certain types of short-term rentals, and the penalties for violations of this Ordinance, compliance with the requirements of this Ordinance shall not be mandatory until April 1, 2024. Notwithstanding the foregoing, the date of passage shall be the effective date for determining whether an Existing Short Term Rental Unit has been established. [THIS SPACE INTENTIONALLY LEFT BLANK] 14 SOUTH BURLINGTON RESIDENTIAL RENTAL REGISTRY ORDINANCE ADOPTED ____________, 2024 Adopted at South Burlington, Vermont this ___ day of __________, _____. SOUTH BURLINGTON CITY COUNCIL ______________________ ______________________ Helen Riehle, Chair Meaghan Emery, Vice Chair ______________________ _______________________ Tim Barritt, Clerk Andrew Chalnick _______________________ Larry Kupferman Received and recorded this ___ day of __________, 2024. _______________________ Holly Rees, City Clerk 2024 – 08 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV A.All rental units shall be inspected by the South Burlington Fire Marshal’s Office (SBFD FMO). B.All newly constructed rental units/buildings having received a Certificate of Occupancy from the SBFD FMO on or after January 1, 2021, shall receive a 5-year Certificate of Compliance from the date of the initial Certificate of Occupancy. C.If no violations are found during the inspection, the building shall receive a 5-year Certificate of Compliance. 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4112 | WWW.SOUTHBURLINGTONVT.GOV D.For any inspected rental building that is found to have 5 or less violations in any one unit, that are corrected within 30 days, the building shall receive a 4- year Certificate of Compliance. E.For any inspected rental building found to have 6 – 10 violations in any one unit that are corrected within 30 days, the building shall receive a 3-year Certificate of Compliance. F.For any inspected rental building with greater than 10 violations in any one unit that are corrected within 30 days, the building shall receive a 2-year Certificate of Compliance. G.For any inspected rental building with greater than 10 violations in any one unit that are corrected between 31-90 days, the building shall receive a 1-year Certificate of Compliance. H.Notwithstanding any of the above, all Short-term rental units shall be inspected annually unless during the inspection no violations are found, and then a two-year Certificate of Compliance will be awarded. I.All inspected rental buildings that cure violations more than 30 but less than 90 days from the initial inspection shall receive a 1-year Certificate of Compliance. J.Nothing in this inspection cycle plan would prevent the Fire Prevention Division from ordering immediate action to address significant code violations that impact life safety. 2024 – 09 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV From: Martha Machar, Finance Director To: South Burlington City Council Jessie Baker, City Manager Subjects: FY23 Audit Report Date: February 15, 2024 The report for Fiscal Year 2023 Audit performed by RHR Smith & Company is attached. It is a lot of information but Miranda MacDonald from RHR Smith will make a presentation on the audit to provide an overview and answer any questions you may have on the report. At the September 18, 2023 Council meeting, we presented unaudited end of the year financial reports and estimated a surplus of over $2M. The audited financials also bring us to the same surplus of over $2M. During multiple council meetings, the staff recommended using FY23 surplus to make make one- time funding allocations to specific projects and also make a transfer to the health reserve fund. The Council supported and approved the recommendations. This resulted in a net of $1.3M FY23 surplus to be added to the fund balance. With this year’s surplus, we continue to built up our fund balance to achieve the recommended target of 16.66% or two months of our operating expenditures in Fund Balance. After considerating the one-time funding allocations mention below, the reserve fund balance at the end of FY23 is at 16.61% of the FY23 operating expenditures. Listed below are the council meeting dates and the items the Council funded with FY23 surplus. August 21st Council approved Allocations TEC/Infinite Youth Center $ 13,000.00 Neogov First year implementation $ 14,028.60 ADP Optimization process $ 10,000.00 Paving Projects $ 200,000.00 Dorset Street School zone engineering study $ 30,000.00 Marcotte School Zone Implementation $ 30,000.00 Dorset Street signal project additional funding $ 130,000.00 Additional funding for dispatch center upgrades $ 250,000.00 Funding for FY24 Illuminate VT (April 2024 event) $ 100,000.00 Indoor Recreation Center FY20 design expenses $ 164,135.63 Bike/Ped Bridge grant consultants $ 50,000.00 Additional funding for the approved social services agencies $ 16,000.00 Kitchen & bathroom renovation at Fire Department Station 2 $ 100,000.00 $ 1,107,164.23 September 18th Council approved Allocations Transfer to Health Reserve Fund - $21,000 October 2nd Council approved Allocations Rick Marcotte Central School traffic Monitor – $10,212 The FY23 surplus was a result of multiple factors resultings from COVID-19 pandemic uncertainties during the FY23 budget process. Revenues, especially local option tax, permit and inspections fees, interest earned income, and ambulance billing services revenues were very conservatively estimated based on assumptions in late 2021. Also attached is the Management Letter to Council from RHR Smith. As you will see, the auditors have no comments on the City’s processes. This is the first year the city has received a no comment management letter. This is a testament to the processes we have in addition to how well the staff diligently execute them as they implement the approved budgets. The City continues to be well poised to continue the high level of service delivery from community and government services the members of our community enjoy. Documents attached: •FY23 Audited Financial Reports (Link only) •SAS 114 and Management Letter (Council box only) Federal Compliance Audit City of South Burlington, Vermont June 30, 2023 CITY OF SOUTH BURLINGTON, VERMONT CONTENTS JUNE 30, 2023 PAGE INDEPENDENT AUDITOR’S REPORT 1 - 4 MANAGEMENT’S DISCUSSION AND ANALYSIS 5 - 13 BASIC FINANCIAL STATEMENTS GOVERNMENT WIDE FINANCIAL STATEMENTS STATEMENT A - STATEMENT OF NET POSITION 14 - 15 STATEMENT B - STATEMENT OF ACTIVITIES 16 - 17 FUND FINANCIAL STATEMENTS STATEMENT C - BALANCE SHEET - GOVERNMENTAL FUNDS 18 STATEMENT D - RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION 19 STATEMENT E - STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS 20 STATEMENT F - RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES 21 STATEMENT G - STATEMENT OF NET POSITION - PROPRIETARY FUNDS 22 STATEMENT H - STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS 23 STATEMENT I - STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS 24 - 25 STATEMENT J - STATEMENT OF NET POSITION - FIDUCIARY FUNDS 26 STATEMENT K - STATEMENT OF CHANGES IN NET POSITION - FIDUCIARY FUNDS 27 NOTES TO FINANCIAL STATEMENTS 28 - 71 REQUIRED SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION DESCRIPTION 72 SCHEDULE 1 - BUDGETARY COMPARISON SCHEDULE - BUDGETARY BASIS - BUDGET AND ACTUAL - GENERAL FUND 73 SCHEDULE 2 - SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY 74 SCHEDULE 3 - SCHEDULE OF CONTRIBUTIONS - PENSIONS 75 SCHEDULE 4 - SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS - EMPLOYEES’ PENSION PLAN 76 SCHEDULE 5 - SCHEDULE OF CONTRIBUTIONS - EMPLOYEES’ PENSION PLAN 77 SCHEDULE 6 - SCHEDULE OF INVESTMENT RETURNS 78 SCHEDULE 7 - SCHEDULE OF FUNDING PROGRESS - EMPLOYEES’ PENSION PLAN 79 NOTES TO REQUIRED SUPPLEMENTARY INFORMATION 80 OTHER SUPPLEMENTARY INFORMATION OTHER SUPPLEMENTARY INFORMATION DESCRIPTION 81 SCHEDULE A - BUDGETARY COMPARISON SCHEDULE - BUDGETARY BASIS - BUDGET AND ACTUAL - GENERAL FUND REVENUES 82 SCHEDULE B - SCHEDULE OF DEPARTMENTAL OPERATIONS - GENERAL FUND 83 - 84 SCHEDULE C - COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS 85 SCHEDULE D - COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS 86 SPECIAL REVENUE FUNDS DESCRIPTION 87 SCHEDULE E - COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS 88 - 93 SCHEDULE F - COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR SPECIAL REVENUE FUNDS 94 - 99 CAPITAL PROJECTS FUNDS DESCRIPTION 100 SCHEDULE G - COMBINING BALANCE SHEET - NONMAJOR CAPITAL PROJECTS FUNDS 101 SCHEDULE H - COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR CAPITAL PROJECTS FUNDS 102 PERMANENT FUNDS DESCRIPTION 103 SCHEDULE I - COMBINING BALANCE SHEET - NONMAJOR PERMANENT FUNDS 104 SCHEDULE J - COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR PERMANENT FUNDS 105 GENERAL CAPITAL ASSETS DESCRIPTION 106 SCHEDULE K - SCHEDULE OF GENERAL CAPITAL ASSETS BY FUNCTION 107 SCHEDULE L - SCHEDULE OF CHANGES IN GENERAL CAPITAL ASSETS BY FUNCTION 108 FEDERAL COMPLIANCE FEDERAL COMPLIANCE DESCRIPTION 109 SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 110 - 111 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS 112 INDEPENDENT AUDITOR’S 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 113 - 114 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY UNIFORM GUIDANCE 115 - 117 SCHEDULE OF FINDINGS AND QUESTIONED COSTS 118 1 INDEPENDENT AUDITOR’S REPORT City Council City of South Burlington South Burlington, Vermont Report on the Audit of the Financial Statements Opinions We have audited the 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, 2023 and the related notes to the financial statements, which collectively comprise the City of South Burlington, Vermont’s basic financial statements as listed in the table of contents. In our opinion, the accompanying 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, 2023 and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended, in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of South Burlington, Vermont and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principle generally accepted in the United States of America and for 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. 3 Old Orchard Road, Buxton, Maine 04093 Tel: (800) 300-7708 (207) 929-4606 Fax: (207) 929-4609 www.rhrsmith.com 2 In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of South Burlington, Vermont’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material misstatements of the financial statements, whether due to fraud or error and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • obtain an understanding of internal controls relevant to the audit 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 City of South Burlington, Vermont’s internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise doubt about the City of South Burlington, Vermont’s ability to continue as a going concern for a reasonable period of time. 3 We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison information and pension information on pages 5 through 13 and 73 through 80 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 information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary 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 Budgetary Comparison Schedule - Budgetary Basis - Budget and Actual - General Fund Revenues, Schedule of Departmental Operations - General Fund, combining and individual nonmajor fund financial statements and capital asset schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards and is also not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates 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 Budgetary Comparison Schedule - Budgetary Basis - Budget and Actual - General Fund Revenues, Schedule of Departmental Operations - General Fund, combining and individual nonmajor fund financials, general capital asset schedules and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. 4 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 24, 2024, on our consideration of the City of South Burlington, Vermont’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing and not to provide an opinion on the effectiveness of the City of South Burlington, Vermont’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards considering the City of South Burlington’s internal control over financial reporting and compliance. Buxton, Maine Vermont Registration No. 092.0000697 January 24, 2024 5 REQUIRED SUPPLEMENTARY INFORMATION MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2023 (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, 2023. Please read it in conjunction with the City's financial statements. Financial Statement Overview The City of South Burlington, Vermont’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 pension information 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. These 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. 6 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, social services, recreation and culture, education and program expenditures. ● 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 programs, water department, water pollution 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 essentially 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 government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government’s near-term financing decisions. Both the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement. 7 The City of South Burlington presents four 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, City Center - TIF District Fund and the Capital Improvement Reserve Fund. 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: specific 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 the accrual basis of accounting. These funds for the City are for the employee pension trust fund. 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 Statement of Changes in Net Position - Fiduciary Funds. 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, Schedule of Proportionate Share of the Net Pension Liability, Schedule of Contributions - Pensions, Schedule of Changes in Net Pension Liability and Related Ratios - Employees’ Pension Plan, Schedule of Contributions - Employees’ Pension Plan, Schedule of Investment Returns, Schedule of Funding Progress - Employees’ Pension Plan and Notes to Required Supplementary Information. 8 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. 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 $45,240,379 compared to $40,175,837 in the prior year, an increase of $5,064,442. For the business-type activities, total net position is $31,747,907 compared to $30,092,046 in the prior year, an increase of $1,655,861. 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 $4,297,404 at the end of this year for governmental activities and $6,863,261 for the business-type activities. 9 Governmental Governmental Business-type Activities Business-type Activities Activities (Restated)Activities Assets: Current Assets 25,494,371$ 8,535,944$ 21,393,225$ 8,122,953$ Noncurrent Assets - Capital Assets 65,199,446 35,136,311 63,798,080 34,592,197 Total Assets 90,693,817 43,672,255 85,191,305 42,715,150 Deferred Outflows of Resources: Deferred Outflows Related to Pensions 7,501,303 - 8,831,324 - Total Deferred Inflows of Resources 7,501,303 - 8,831,324 - Liabilities: Current Liabilities 5,061,217 2,316,518 4,258,420 2,046,472 Noncurrent Liabilities 43,739,005 9,607,830 44,149,603 10,576,632 Total Liabilities 48,800,222 11,924,348 48,408,023 12,623,104 Deferred Inflows of Resources: Deferred Inflows Related to Pensions 3,689,120 - 5,413,969 - Deferred Revenue 24,844 - 24,800 - Total Deferred Inflows of Resources 3,713,964 - 5,438,769 - Net Position: Net Investment in Capital Assets 31,665,739 24,559,679 29,044,113 23,369,350 Restricted for:Special Revenue Funds 8,913,479 - 7,263,485 - Permanent Funds 27,111 - 65,582 - Water Department Capital Reserve - 324,967 - 544,217 Unrestricted 4,297,404 6,863,261 3,802,657 6,178,479 Total Net Position 45,240,279$ 31,747,907$ 40,175,837$ 30,092,046$ 2022 Table 1 City of South Burlington, Vermont Net Position June 30, 2023 10 Governmental Business-type Governmental Business-type Activities Activities Activities Activities Revenues Program Revenues: Charges for services 7,447,224$ 11,443,364$ 5,900,383$ 10,729,325$ Operating grants and contributions 5,884,267 926,260 4,818,401 2,363,279 General Revenues: Taxes 68,396,610 - 65,790,781 - Investment income - 18,720 - 3,364 Miscellaneous 349,683 254,912 312,849 306,862 Total Revenues 82,077,784 12,643,256 76,822,414 13,402,830 Expenses General government 11,946,535 - 9,291,008 - Public safety 10,424,936 - 9,876,960 - Public works 2,286,961 - 3,095,249 - Social services 807,528 - 777,349 - Recreation and culture 2,021,817 - 1,732,446 - Education 44,497,252 - 42,923,659 - Program expenditures 3,161,758 - 1,517,294 - Interest expense 988,436 - 1,013,632 - Unallocated depreciation (Note 5)221,929 - 133,618 - Enterprise funds - 10,971,112 - 14,244,008 Total Expenses 77,029,625 10,971,112 70,361,215 14,244,008 Other items: Transfers 16,283 (16,283) (354,270) 354,270 Total other items 16,283 (16,283) (354,270) 354,270 Change in Net Position 5,064,442 1,655,861 6,106,929 (486,908) Net Position - July 1, Restated 40,175,837 30,092,046 34,068,908 30,578,954 Net Position - June 30 45,240,279$ 31,747,907$ 40,175,837$ 30,092,046$ 2023 2022 Table 2 City of South Burlington, Vermont Change in Net Position For the Years Ended June 30, Revenues and Expenses Revenues for the City's governmental activities increased by 6.84%, while total expenses increased by 9.48%. Revenues increased in all areas. General government, education and program expenditures experienced the largest increase while public works had the largest decrease. The City used $1,628,695 from fund balance this year to fund capital projects. The revenues for the proprietary fund decreased by 5.67% while expenses decreased by 22.98%. The proprietary fund has four enterprise funds that all have a positive net position with the exception of specific recreation programs. 11 The proprietary funds had an operating income for the current year of $1,726,036. Financial Analysis of the City’s Fund Statements Governmental funds: The financial reporting focus of the City’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information may be useful in assessing the City’s financial requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s financial position at the end of the year and the net resources available for spending. 2022 Increase/ 2023 (Restated)(Decrease) Major Funds: General Fund: Nonspendable 319,752$ 301,129$ 18,623$ Assigned 1,128,164 1,950,720 (822,556) Unassigned 4,191,260 2,568,840 1,622,420 City Center - TIF District Fund: Restricted - 59,259 (59,259) Unassigned (Deficit)(587,603) - (587,603) Capital Improvement Reserve Fund: Committed 4,423,885 3,203,285 1,220,600 Subtotal Major Funds 9,475,458 8,083,233 1,392,225$ Nonmajor Funds: Special Revenue Funds: Nonspendable 40 230 (190) Restricted 8,913,479 7,204,226 1,709,253 Committed 1,647,562 1,548,235 99,327 Assigned 228,230 266,415 (38,185) Unassigned (Deficit)(164,136) (164,136) - Capital Projects Funds: Restricted 336,546 20,609 315,937 Committed 2,138,077 1,690,121 447,956 Permanent Funds: Restricted 27,111 44,973 (17,862) Committed 24,619 22,654 1,965 Assigned 6,485 6,453 32 Unassigned (Deficit)(63,193) - (63,193) Subtotal Nonmajor Funds 13,094,820 10,639,780 2,455,040 Total Governmental Funds 22,570,278$ 18,723,013$ 3,847,265$ Table 3 City of South Burlington, Vermont Fund Balances - Governmental Funds June 30, The changes to total fund balances for the general fund, capital improvement reserve fund and nonmajor funds occurred due to the regular activity of operations. The City Center - TIF fund’s significant decrease was due to capital outlay expenditures. 12 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 was no difference between the original and final budget for the general fund. The general fund actual revenues exceeded budgeted amounts by $2,356,161. This was a result of all categories exceeding budgeted amounts. The excess revenues in the general tax revenue line is primarily due to the receipt of TIF and Pennies for Paths tax revenue. The general fund actual expenditures were below budgeted amounts by $327,811. Most expenditures were within or below budgeted amounts with the exception of general government, public works, social services and debt-service- principal. Capital Asset and Debt Administration Capital Assets As of June 30, 2023, the net book value of capital assets recorded by the City increased by $1,292,771 from the prior fiscal year. This increase was a result of net additions of $6,183,474, less net disposals of $37,896 and current year depreciation expense of $4,852,807. Refer to Note 5 of Notes to Financial Statements for more detailed information. 2023 2022 Land 8,980,659$ 8,527,208$ Art work 94,500 94,500 Construction in progress 3,315,296 21,590,234 Buildings, building improvements and land improvements 46,375,629 27,019,404 Machinery, furniture, equipment and vehicles 8,970,998 8,987,948 Right of use lease assets 263,000 Infrastructure and storm water utilities 31,988,420 32,476,437 Total 99,988,502$ 98,695,731$ Table 4 City of South Burlington, Vermont Capital Assets (Net of Depreciation) June 30, 13 Debt At June 30, 2023, the City had $43,763,084 in bonds, notes from direct borrowings and a lease liability outstanding versus $46,282,268 last year. Refer to Note 7 of Notes to Financial Statements for more detailed information. Currently Known Facts, Decisions or Conditions Economic Factors and Next Year's Budgets and Rates The City’s unassigned fund balance has fallen below a level sufficient to sustain government operations for a period of three months. However, the City continues to maintain significant reserves for future operations, capital and program needs. Contacting the City's Financial Management This financial report is designed to provide our citizens, taxpayers, customers and investors and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have questions about this report or need additional financial information, contact Martha Machar, Finance Director at 180 Market Street, South Burlington, Vermont 05403-0808. Martha can also be reached by phone at 802-846-4107 or by email at mmachar@southburlingtonvt.gov. STATEMENT A CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF NET POSITION JUNE 30, 2023 14 Governmental Business-type Activities Activities Total ASSETS Current assets: Cash and cash equivalents 26,513,644$ 1,186,704$ 27,700,348$ Taxes receivable (net of allowance for uncollectibles)263,803 - 263,803 Due from water - billed - 1,137,035 1,137,035 Due from water - unbilled - 1,489,871 1,489,871 Other receivables 2,338,517 626,293 2,964,810 Inventory 21,796 53,573 75,369 Prepaid items 297,996 7,683 305,679 Internal balances (4,034,785) 4,034,785 - Lease receivable - current portion 93,400 - 93,400 Total current assets 25,494,371 8,535,944 33,936,915 Noncurrent assets: Lease receivable - noncurrent portion 347,255 - 347,255 Capital assets: Land and other assets not being depreciated 10,053,913 2,336,542 12,390,455 Right of use lease asset, net of accumualted depreciation 263,000 - 263,000 Depreciable assets, net of accumulated depreciation 54,535,278 32,799,769 87,335,047 Total noncurrent assets 65,199,446 35,136,311 100,335,757 TOTAL ASSETS 90,693,817 43,672,255 134,272,672 DEFERRED OUTFLOWS OF RESOURCES Deferred amount on pensions 7,501,303 - 7,501,303 TOTAL DEFERRED OUTFLOWS OF RESOURCES 7,501,303 - 7,501,303 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 98,195,120$ 43,672,255$ 141,867,375$ STATEMENT A (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF NET POSITION JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 15 Governmental Business-type Activities Activities Total LIABILITIES Current liabilities: Accounts payable 2,052,786$ 1,347,716$ 3,400,502$ Accrued expenses 421,342 - 421,342 Due to taxpayers 162,960 - 162,960 Due to agencies 5,490 - 5,490 Current portion of long-term obligations 2,418,639 968,802 3,387,441 Total current liabilities 5,061,217 2,316,518 7,377,735 Noncurrent liabilities: Noncurrent portion of long-term obligations: Bonds payable 25,717,378 9,607,830 35,325,208 Notes from direct borrowings payable 5,039,840 - 5,039,840 Lease liability 219,000 219,000 Accrued benefit time 627,324 - 627,324 Post retirement incentive 553,639 - 553,639 Net pension liability 11,581,824 - 11,581,824 Total noncurrent liabilities 43,739,005 9,607,830 53,346,835 TOTAL LIABILITIES 48,800,222 11,924,348 60,724,570 DEFERRED INFLOWS OF RESOURCES Deferred revenue 24,844 - 24,844 Deferred revenue related to leases 440,655 - 440,655 Deferred amount on pensions 3,689,120 - 3,689,120 TOTAL DEFERRED INFLOWS OF RESOURCES 4,154,619 - 4,154,619 NET POSITION Net Investment in capital assets 31,665,739 24,559,679 56,225,418 Restricted for: Special Revenue Funds 8,913,479 - 8,913,479 Permanent Funds 27,111 - 27,111 Water Department Capital Reserve - 324,967 324,967 Unrestricted 4,297,404 6,863,261 11,160,665 TOTAL NET POSITION 45,240,279 31,747,907 76,988,186 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND NET POSITION 98,195,120$ 43,672,255$ 141,867,375$ STATEMENT B CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2023 16 Operating Capital Business- Charges for Grants and Grants and Governmental type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities: General government 11,946,535$ 2,301,438$ 5,598,547$ -$ (4,046,550)$ -$ (4,046,550)$ Public safety 10,424,936 2,639,175 - - (7,785,761) - (7,785,761) Public works 2,286,961 764,364 285,720 - (1,236,877) - (1,236,877) Social services 807,528 - - - (807,528) 0 - (807,528) Recreation and culture 2,021,817 150,073 - - (1,871,744) - (1,871,744) Education 44,497,252 - - - (44,497,252) - (44,497,252) Program expenditures 3,161,758 1,592,174 - - (1,569,584) - (1,569,584) Interest on long-term debt 988,436 - - - (988,436) - (988,436) Unallocated depreciation* (Note 5)221,929 - - - (221,929) - (221,929) Total governmental activities 77,029,625 7,447,224 5,884,267 - (63,698,134) - (63,698,134) Business-type activities: Recreation programs 34,055 27,671 - - - (6,384) (6,384) Water department 2,876,884 3,241,357 - - - 364,473 364,473 Water pollution 5,889,341 5,681,179 - - - (208,162) (208,162) Storm water utilities 2,170,832 2,493,157 926,260 - - 1,248,585 1,248,585 Total business-type activities 10,971,112 11,443,364 926,260 - - 1,398,512 1,398,512 Total government 88,000,737$ 18,890,588$ 6,810,527$ -$ (63,698,134) 1,398,512 (62,299,622) *This amount excludes depreciation that is included in the direct expenses of the various programs. Program Revenues Net (Expense) Revenue and Changes in Net Position STATEMENT B (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 17 Business- Governmental type Activities Activities Total Changes in net position: Net (expense) revenue (63,698,134) 1,398,512 (62,299,622) General revenues: Property taxes, levied for general purposes Education 44,497,252 - 44,497,252 Municipal 23,899,358 - 23,899,358 Investment income - 18,720 18,720 Miscellaneous 349,683 254,912 604,595 Total general revenues 68,746,293 273,632 69,019,925 Other items: Transfers 16,283 (16,283) - Change in net position 5,064,442 1,655,861 6,720,303 NET POSITION - JULY 1, RESTATED 40,175,837 30,092,046 70,267,883 NET POSITION - JUNE 30 45,240,279$ 31,747,907$ 76,988,186$ STATEMENT C CITY OF SOUTH BURLINGTON, VERMONT BALANCE SHEET - GOVERNMENTAL FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 18 City Capital Other Total General Center - TIF Improvement Governmental Governmental Fund District Fund Reserve Fund Funds Funds ASSETS Cash and cash equivalents 26,266,959$ 246,585$ -$ 100$ 26,513,644$ Taxes receivable (net of allowance for uncollectibles)263,803 - - - 263,803 Other recievables 1,762,275 74,698 - 501,544 2,338,517 Inventory 21,796 - - - 21,796 Prepaid items 297,956 - - 40 297,996 Due from other funds 1,201,938 - 4,423,885 13,268,643 18,894,466 TOTAL ASSETS 29,814,727$ 321,283$ 4,423,885$ 13,770,327$ 48,330,222$ LIABILITIES Accounts payable 1,618,285$ -$ -$ 434,501$ 2,052,786$ Accrued expenses 421,342 - - - 421,342 Due to taxpayers 162,960 - - - 162,960 Due to agencies - - - 5,490 5,490 Due to other funds 21,784,849 908,886 - 235,516 22,929,251 TOTAL LIABILITIES 23,987,436 908,886 - 675,507 25,571,829 DEFERRED INFLOWS OF RESOURCES Deferred tax revenues 163,271 - - - 163,271 Deferred revenue 24,844 - - - 24,844 TOTAL DEFERRED INFLOWS OF RESOURCES 188,115 - - - 188,115 FUND BALANCES (DEFICITS) Nonspendable 319,752 - - 40 319,792 Restricted - - - 9,277,136 9,277,136 Committed - - 4,423,885 3,810,258 8,234,143 Assigned 1,128,164 - - 234,715 1,362,879 Unassigned 4,191,260 (587,603) - (227,329) 3,376,328 TOTAL FUND BALANCES (DEFICITS)5,639,176 (587,603) 4,423,885 13,094,820 22,570,278 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES (DEFICITS)29,814,727$ 321,283$ 4,423,885$ 13,770,327$ 48,330,222$ STATEMENT D CITY OF SOUTH BURLINGTON, VERMONT RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 19 Total Governmental Funds Total Fund Balances 22,570,278$ Amounts reported for governmental activities in the Statement of Net Positionare different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds, net of accumulated depreciation 64,852,191 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 163,271 Deferred outflows of resources are not financial resources and therefore are not reported in the funds 7,501,303 Lease receivable 440,655 Long-term obligations are not due and payable in the current period and therefore are not reported in the funds: Bonds payable (26,991,164) Notes from direct borrowings payable (5,932,488) Lease liabilities (262,800) Accrued benefit time (738,028) Post retirement incentive (651,340) Net pension liability (11,581,824) Deferred inflows of resources are not financial resources and therefore are not reported in the funds (4,129,775) Net position of governmental activities 45,240,279$ STATEMENT E CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 20 City Capital Other Total General Center - TIF Improvement Governmental Governmental Fund District Fund Reserve Fund Funds Funds REVENUES General tax revenue - municipal and education 68,125,106$ 462,812$ -$ -$ 68,587,918$ Intergovernmental revenue 1,161,887 690,704 - 4,031,676 5,884,267 Charges for services 5,796,323 - 58,727 1,592,174 7,447,224 Other revenue 39,025 7,828 - 302,830 349,683 TOTAL REVENUES 75,122,341 1,161,344 58,727 5,926,680 82,269,092 EXPENDITURES Current: General government 10,151,926 - - - 10,151,926 Public safety 9,501,048 - - - 9,501,048 Public works 3,455,999 - - - 3,455,999 Social services 803,918 - - - 803,918 Recreation and culture 1,932,114 - - - 1,932,114 Education 44,497,252 - - - 44,497,252 Program expenditures - 95,905 - 3,065,853 3,161,758 Debt service Principal 1,211,245 505,469 - - 1,716,714 Interest 269,218 719,218 - - 988,436 Capital outlay - 1,574,848 200,000 454,097 2,228,945 TOTAL EXPENDITURES 71,822,720 2,895,440 200,000 3,519,950 78,438,110 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 3,299,621 (1,734,096) (141,273) 2,406,730 3,830,982 OTHER FINANCING SOURCES (USES) Transfers in 192,551 1,087,234 2,428,595 265,160 3,973,540 Transfers (out)(2,673,685) - (1,066,722) (216,850) (3,957,257) TOTAL OTHER FINANCING SOURCES (USES)(2,481,134) 1,087,234 1,361,873 48,310 16,283 NET CHANGE IN FUND BALANCES (DEFICITS)818,487 (646,862) 1,220,600 2,455,040 3,847,265 FUND BALANCES (DEFICITS) - JULY 1 4,820,689 59,259 3,203,285 10,639,780 18,723,013 FUND BALANCES (DEFICITS) - JUNE 30 5,639,176$ (587,603)$ 4,423,885$ 13,094,820$ 22,570,278$ 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, 2023 See accompanying independent auditor’s report and notes to financial statements. 21 Net change in fund balances - total governmental funds (Statement E)3,847,265$ 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 acquisitions 3,919,756 Capital asset disposals (36,810) Depreciation expense (2,828,835) 1,054,111 Revenues in the Statement of Activities that do not provide current financial resources are not reported: Taxes and liens receivable (191,308) Lease receivable 440,655 249,347 Deferred outflows of resources is a consumption of net position by the government that are applicable to a future reporting period and therefore are not reported in the funds.(1,330,021) Debt proceeds provide current financial resources to governmental funds, but long-term obligations in the Statement of Net Position (306,600) Repayment of long-term debt principal is an expenditure in the governmental funds, but the repayment reduces long-term obligations in the Statement of Net Position.1,874,115 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 benefit time (111,661) Post retirement incentive (7,839) Net pension liability (1,488,469) (1,607,969) Deferred inflows of resources are an acquisition of net position by the government that are applicable to a future reporting period and therefore are not reported in the funds: Pension 1,724,849 Lease receivable (440,655) 1,284,194 Change in net position of governmental activities (Statement B)5,064,442$ STATEMENT G CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF NET POSITION - PROPRIETARY FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 22 Specific Rec.Water Water Storm Water Programs Department Pollution Utilities Total ASSETS Current assets: Cash and cash equivalents -$ 1,186,704$ -$ -$ 1,186,704$ Accounts receivable (net of allowance for uncollectibles)- 70,678 - 555,615 626,293 Due from water - billed - 878,723 20,092 238,220 1,137,035 Due from water - unbilled - 464,013 590,658 435,200 1,489,871 Inventory - 53,573 - - 53,573 Prepaid items - 7,683 - - 7,683 Due from other funds - - 2,226,505 1,865,816 4,092,321 Total current assets - 2,661,374 2,837,255 3,094,851 8,593,480 Noncurrent assets: Land, buildings, mains and other water assets - 7,520,723 44,153,539 11,431,976 63,106,238 Vehicles and equipment - - 1,311,657 1,220,632 2,532,289 Total capital assets - 7,520,723 45,465,196 12,652,608 65,638,527 Less: accumulated depreciation - (3,931,980) (22,971,664) (3,598,572) (30,502,216) Total noncurrent assets - 3,588,743 22,493,532 9,054,036 35,136,311 TOTAL ASSETS -$ 6,250,117$ 25,330,787$ 12,148,887$ 43,729,791$ LIABILITIES AND NET POSITION Current liabilities: Accounts payable -$ 1,347,716$ -$ -$ 1,347,716$ Due to other funds 57,536 - - - 57,536 Current portion of long-term obligations - 95,016 873,786 - 968,802 Total current liabilities 57,536 1,442,732 873,786 - 2,374,054 Noncurrent liabilities: Noncurrent portion of long-term obligations: Bonds payable - 95,017 9,512,813 - 9,607,830 Total noncurrent liabilities - 95,017 9,512,813 - 9,607,830 TOTAL LIABILITIES 57,536 1,537,749 10,386,599 - 11,981,884 NET POSITION (DEFICITS) Net investment in capital assets - 3,398,710 12,106,933 9,054,036 24,559,679 Restricted - 324,967 - - 324,967 Unrestricted (57,536) 988,691 2,837,255 3,094,851 6,863,261 TOTAL NET POSITION (DEFICITS)(57,536) 4,712,368 14,944,188 12,148,887 31,747,907 TOTAL LIABILITIES AND NET POSITION (DEFICITS)-$ 6,250,117$ 25,330,787$ 12,148,887$ 43,729,791$ Enterprise Funds STATEMENT H CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 23 Specific Rec.Water Water Storm Water Programs Department Pollution Utilities Total OPERATING REVENUES Intergovernmental revenue -$ -$ -$ 926,260$ 926,260$ Water sales - 2,618,225 - - 2,618,225 Charges for services 27,671 623,132 5,681,179 2,493,157 8,825,139 Other - - 168,263 86,649 254,912 TOTAL OPERATING REVENUES 27,671 3,241,357 5,849,442 3,506,066 12,624,536 OPERATING EXPENSES Salaries and benefits - 522,219 1,449,641 1,058,481 3,030,341 Professional and contracted services - 229,670 336,263 99,636 665,569 Supplies, materials and fuel - 42,607 1,155,540 27,776 1,225,923 Water purchases - 1,838,869 - - 1,838,869 Repairs and maintenance - 27,576 1,891 188,580 218,047 Utilities - 5,785 1,049,281 4,577 1,059,643 Depreciation - 183,751 1,429,715 410,506 2,023,972 Administrative services - 15,723 149,344 102,104 267,171 Insurances - 6,290 91,203 34,859 132,352 Miscellaneous 34,055 3,133 36,651 244,313 318,152 TOTAL OPERATING EXPENSES 34,055 2,875,623 5,699,529 2,170,832 10,780,039 OPERATING INCOME (LOSS)(6,384) 365,734 149,913 1,335,234 1,844,497 NONOPERATING INCOME (EXPENSE) Transfers (out)- - (10,891) (5,392) (16,283) Interest income - 18,720 - - 18,720 Interest (expense)- (1,261) (189,812) - (191,073) TOTAL NONOPERATING INCOME (EXPENSE)- 17,459 (200,703) (5,392) (188,636) CHANGE IN NET POSITION (DEFICIT)(6,384) 383,193 (50,790) 1,329,842 1,655,861 NET POSITION (DEFICIT) - JULY 1, RESTATED (51,152) 4,329,175 14,994,978 10,819,045 30,092,046 NET POSITION (DEFICIT) - JUNE 30 (57,536)$ 4,712,368$ 14,944,188$ 12,148,887$ 31,747,907$ Enterprise Funds STATEMENT I CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2023 24 Specific Rec.Water Water Storm Water Programs Department Pollution Utilities Total CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers 27,671$ 3,102,572$ 5,511,356$ 2,282,492$ 10,924,091$ Intergovernmental receipts - - - 926,260 926,260 Other receipts - - 168,263 86,649 254,912 Payments to employees - (522,219) (1,449,641) (1,058,481) (3,030,341) Payments to suppliers (27,671) (1,923,938) (2,808,125) (701,845) (5,461,579) NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES - 656,415 1,421,853 1,535,075 3,613,343 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Interfund transfers - - (10,891) (5,392) (16,283) NET CASH PROVIDED (USED) BY NONCAPITAL FINANCING ACTIVITIES - - (10,891) (5,392) (16,283) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Interest income - 18,720 - - 18,720 (Purchase) sale of fixed assets - (326,725) (364,498) (1,529,683) (2,220,906) Interest payments on bond/note payable - (1,261) (189,812) - (191,073) Principal payments on bond/note payable - (95,016) (856,653) - (951,669) NET CASH PROVIDED (USED) BY CAPITAL AND RELATED FINANCING ACTIVITIES - (404,282) (1,410,963) (1,529,683) (3,344,928) . NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - 252,133 - - 252,133 CASH AND CASH EQUIVALENTS - JULY 1 - 934,571 - - 934,571 CASH AND CASH EQUIVALENTS - JUNE 30 -$ 1,186,704$ -$ -$ 1,186,704$ Enterprise Funds STATEMENT I (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 25 Specific Rec.Water Water Storm Water Programs Department Pollution Utilities Total RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) (6,384)$ 365,734$ 149,913$ 1,335,234$ 1,844,497$ Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation expense - 183,751 1,429,715 410,506 2,023,972 Changes in operating assets and liabilities: (Increase) decrease in due from water - billed - (17,540) (20,092) 20,092 (17,540) (Increase) decrease in due from water - unbilled - (51,165) (19,375) (22,352) (92,892) (Increase) decrease in accounts receivable - (70,080) - 110,745 40,665 (Increase) decrease in inventory - (1,135) - - (1,135) (Increase) decrease in prepaid items - (6,063) 12,048 6,490 12,475 (Increase) decrease in due from other funds - - (130,356) (325,640) (455,996) (Decrease) increase in accounts payable - 252,913 - - 252,913 (Decrease) increase in due to other funds 6,384 - - - 6,384 NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES -$ 656,415$ 1,421,853$ 1,535,075$ 3,613,343$ Enterprise Funds STATEMENT J CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF NET POSITION - FIDUCIARY FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 26 Employee Pension Trust ASSETS Cash: Cash equivalents 2$ Investments, at fair value: Equity mutual funds 25,823,051 Hedge fund 3,980,711 Fixed income mututal funds 13,161,352 Accrued interest receivable 40,426 TOTAL ASSETS 43,005,542$ NET POSITION Restricted - held in trust for pension benefits 43,005,542$ TOTAL NET POSITION 43,005,542$ STATEMENT K CITY OF SOUTH BURLINGTON, VERMONT STATEMENT OF CHANGES IN NET POSITION - FIDUCIARY FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 27 Employee Pension Trust ADDITIONS Contributions: Employer 1,275,950$ Employee 305,084 Total contributions 1,581,034 Investment earnings: Net increase (decrease) in fair value of investments 4,070,378 Total investment earnings, net 4,070,378 Total additions 5,651,412 DEDUCTIONS Benefit payments 2,638,820 Administrative expenses 207,294 Total deductions 2,846,114 CHANGE IN NET POSITION 2,805,298 NET POSITION - JULY 1 40,200,244 NET POSITION - JUNE 30 43,005,542$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 28 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, public safety, public works, social services, recreation and culture, education and program expenditures. 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 Statements No. 39 and No. 61. Implementation of New Accounting Standards During the year ended June 30, 2023, the following statements of financial accounting standards issued by the Governmental Accounting Standards Board became effective: Statement No. 94 “Public-Private and Public-Public Partnerships and Availability Payment Arrangements”. The primary objective of this Statement is to improve financial reporting by addressing issues related to public-private and public-public partnership arrangements (PPPs). As used in this Statement, a PPP is an arrangement in which a government (the transferor) contracts with an operator (a governmental or nongovernmental entity) to provide public services by conveying control of the right to operate or use a nonfinancial asset, such as infrastructure or other capital asset (the underlying PPP asset), for a period of time in an exchange or exchange-like transaction. Some PPPs meet the definition of a service concession arrangement (SCA), which the Board defines in this Statement as a PPP in which (1) the operator collects and is compensated by fees from third parties; (2) the transferor determines or has the ability to modify or approve which services the operator is required to provide, to whom the operator is required to provide the services and the prices or rates that can be charged for the services and (3) the transferor is entitled to significant residual interest in the service utility of the underlying PPP asset at the end of the arrangement. Management has determined the impact of this Statement is not material to the financial statements. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 29 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Statement No. 96 “Subscription-Based Information Technology Arrangements”. This Statement provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (SBITAs) for government end users (governments). This Statement (1) defines a SBITA; (2) establishes that a SBITA results in a right-to-use subscription asset - an intangible asset - and a corresponding subscription liability; (3) provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA and (4) requires note disclosures regarding a SBITA. To the extent relevant, the standards for SBITAs are based on the standards established in Statement No. 87, Leases, as amended. Management has determined the impact of this Statement is not material to the financial statements. Statement No. 99 “Omnibus 2022”. The objectives of this Statement are to enhance comparability in accounting and financial reporting and to improve the consistency of authoritative literature by addressing (1) practice issues that have been identified during implementation and application of certain GASB Statements and (2) accounting and financial reporting for financial guarantees. The practice issues addressed by this Statement are to provide clarification of provisions in Statement No. 87, Leases, as amended, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset and identification of lease incentives, clarification of provisions in Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements, related to (a) the determination of the public-private and public-public partnership (PPP) term and (b) recognition and measurement of installment payments and the transfer of the underlying PPP asset, clarification of provisions in Statement No. 96, Subscription-Based Information Technology Arrangements, related to the subscription-based information technology arrangement (SBITA) term, classification of a SBITA as a short-term SBITA and recognition and measurement of a subscription liability, extension of the period during which the London Interbank Offered Rate (LIBOR) is considered an appropriate benchmark interest rate for the qualitative evaluation of the effectiveness of an interest rate swap that hedges the interest rate risk of taxable debt, accounting for the distribution of benefits as part of the Supplemental Nutrition Assistance Program (SNAP), disclosures related to nonmonetary transactions, pledges of future revenues when resources are not received by the pledging government, clarification of provisions in Statement No. 34, Basic Financial Statements - and Management’s Discussion and Analysis - for State and Local Governments, as amended, related to the focus of the government-wide financial statements, terminology updates related to certain provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources and Net Position and terminology used in Statement 53 to refer to resource flows statements. Management has determined the impact of this Statement is not material to the financial statements. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 30 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 programs, water department, water pollution 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 - net investment in capital assets, 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.) excluding fiduciary activities. 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 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 directly 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. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 31 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Measurement Focus - Basic Financial Statements and 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, deferred outflows of resources, liabilities, deferred inflows of resources, 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: Major funds: 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. The City Center - TIF District Fund is used to account for the financial resources to be used for the special tax increment financing account for the City Center projects. Revenue sources are primarily from taxes and transfers from other funds. c. The Capital Improvement Reserve Fund is used to account for the financial resources to be used for capital improvement projects. The primary revenue source for this fund is transfers from other funds. Nonmajor funds: d. Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. e. Capital Projects Funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities or equipment. f. Permanent Funds are used to account for assets held by the City in trust for specific purposes. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 32 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. Nonoperating 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 (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, deferred outflows of resources, liabilities, deferred inflows of resources, revenues or expenses of either the fund category or the governmental andenterprise 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, 2023 33 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. 3. The budget was adopted subsequent to passage by the voters. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 34 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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 deposit and other evidence of deposits at banks, savings and loan associations and credit unions - Repurchase agreements - Money market mutual funds Receivables Receivables include amounts due from governmental agencies and local businesses. All receivables with the exception of lease receivables are current and therefore due within one year. Lease receivables are presented with both current and noncurrent portions. Receivables are reported net of an allowance for uncollectible accounts and revenues net of uncollectibles. Allowances are reported when accounts are proven to be uncollectible. The allowance for uncollectible accounts is estimated to be $0 as of June 30, 2023. Accounts receivable netted with allowances for uncollectible accounts were $5,591,716 for the year ended June 30, 2023. Inventories and Prepaid Items 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. Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in the government-wide financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed rather than when purchased. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 35 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Interfund Receivables and Payables Transactions between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due to/from other funds”. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Any residual balances outstanding between governmental activities and business-type activities are reported in the governmental-wide financial statements as “internal balances”. 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. 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. 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. Art work has been capitalized as non-depreciable assets as they are considered inexhaustible. The assets are valued at historical cost when available and estimated historical cost where actual invoices or budgetary data was unavailable. Donated capital assets are reported at their estimated fair market value on the date received. All retirements have been recorded by eliminating the net carrying values. A right of use lease asset is required to be reported at the present value of payments expected to be made during the lease term including and any/all other required financial lease obligations in accordance with the terms of the lease and excluding interest. A lease asset will be amortized on a straight-line basis over the lease term or the useful life of the underlying asset (whichever is shorter). 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. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 36 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Estimated useful lives are as follows: Buildings 20 - 50 years Infrastructure 50 - 100 years Furniture and fixtures 3 - 50 years Machinery and equipment 3 - 50 years Vehicles 3 - 25 years Long-term Obligations The accounting treatment of long-term obligations 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. All long-term obligations to be repaid from governmental and business-type resources are reported as liabilities in government-wide statements. The long-term obligations consist of bonds and notes from direct borrowings payable, lease liabilities, accrued benefit time, post retirement incentive and net pension liability. 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. Pensions For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions and pension expense, information about the fiduciary net position of the Vermont Municipal Employees’ Retirement System (VMERS) Plans and additions to/deductions from the VMERS Plans’ fiduciary net position have been determined on the same basis as they are reported by the VMERS Plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Net Position Net position represents the difference between all other elements in a statement of financial position. Net investment in capital assets 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 limitations imposed on its use either through enabling legislations adopted CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 37 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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, deferred 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 governmental 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 components - nonspendable, restricted, committed, assigned and unassigned. 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 classified as restricted or committed but that are intended to be used for specific purposes. The authority for assigning fund balance is given annually by the vote of the taxpayer and 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 CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 38 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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. Deferred Outflows and Inflows of Resources In addition to assets, the statement of financial position and/or balance sheet will at times report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City currently has one type of item, deferred amount on pensions. This item is reported in the statement of net position. In addition to liabilities, the statement of financial position and or balance sheet will at times report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. Deferred tax revenues, which arises only under a modified accrual basis of accounting, qualifies for reporting in this category. Accordingly, this item is reported in the governmental funds balance sheet. The City also has deferred revenue which arises under both the modified accrual basis and the accrual basis. The City has deferred amounts on leases and pensions, which arise only under an accrual basis of accounting that qualifies for reporting in this category. Accordingly, these items are reported in the statement of net position. All items in this category are deferred and recognized as an inflow of resources in the period that the amounts become available. Revenue Recognition - Property Taxes - Modified Accrual Basis The City's property tax for the current year was levied July 1, 2022 on the assessed value listed as of April 1, 2022, for all real and personal property located in the City. Taxes were due on August 16, 2022, November 15, 2022 and March 15, 2023. Interest on unpaid taxes commenced on August 15, 2022, November 16, 2022 and March 16, 2023. Taxes unpaid after the due date are considered delinquent. An 8% penalty is assessed and interest is charged at 1% per annum. The penalty is charged once while interest accrues on the 15th of each month. Property tax revenues are recognized when they become 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. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 39 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Program Revenues Program revenues include all directly related income items applicable to a particular program (charges to customers or applicants for goods, services or privileges provided, operating or capital grants and contributions, including special assessments). Operating/Nonoperating Proprietary Fund Revenues Operating revenues consist mainly of direct revenue sources and/or charges for services applicable to that fund’s ongoing operations. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 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 accounting 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 - DEPOSITS 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. 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. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 40 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) At June 30, 2023, the City’s cash balance of $27,700,350 was comprised of bank deposits and cash equivalents totaling $27,139,349. Bank deposits and cash equivalents are adjusted primarily by outstanding checks and deposits in transit to reconcile to the City’s cash and cash equivalents balance. Of these bank deposits, $500,000 was insured by federal depository insurance and consequently was not exposed to custodial credit risk, $26,639,349 was in excess of federal depository insurance but collateralized with a standby letter of credit. Bank Account Type Balance Checking accounts 5,708,656$ Money market accounts 21,430,691 Cash equivalents 2 27,139,349$ 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. 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. At June 30, 2023, the City had investments of $42,965,114. Of these investments, $42,465,114 were uncollateralized and uninsured. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 41 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) At June 30, 2023, the Town had the following investments and maturities: Fair Investment Type Value N/A < 1 Year 1 - 5 Years Equity securities: Mutual funds: Equity - domestic 25,823,051$ 25,823,051$ -$ -$ Fixed income - domestic 13,161,352 13,161,352 - - Pooled investment fund 3,980,711 3,980,711 - - 42,965,114$ 42,965,114$ -$ -$ Fair Value Hierarchy The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The Town has the following recurring fair value measurements as June 30, 2023: Quoted Prices in Significant Active Markets Other Significant for Identical Observable Unobservable June 30, 2023 Assets Inputs Inputs Total (Level I)(Level II)(Level III) Investments by fair value level Equity securities: Mutual funds - domestic and foreign 38,984,403$ 38,984,403$ -$ -$ Total equity securities 38,984,403 38,984,403 - - Pooled investment funds 3,980,711 - 3,980,711 - Total investments by fair value level 42,965,114$ 38,984,403$ 3,980,711$ -$ Cash equivalents measured at the net asset value (NAV) Total cash equivalents measured at the NAV 2 Total investments and cash equivalents measured at fair value 42,965,116$ Fair Value Measurements Using Equity securities classified in Level I of the fair value hierarchy are valued using prices quoted in active markets for those securities. Debt securities and pooled investment funds classified in Level II of the fair value hierarchy are valued from publicly reliable sources or using a matrix pricing technique. Matrix pricing is used to value securities based on the securities’ relationship to benchmark quoted prices. The City does not have any Level III investments. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 42 NOTE 2 - DEPOSITS AND INVESTMENTS (CONTINUED) 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. NOTE 3 - INTERFUND RECEIVABLES AND PAYABLES Interfund balances at June 30, 2023 consisted of the following individual fund receivables and payables: Receivables Payables (Due from)(Due to) General fund 1,201,938$ 21,784,849$ City center - TIF district fund - 908,886 Capital improvement reserve fund 4,423,885 - Nonmajor special revenue funds 10,730,315 172,323 Nonmajor capital project funds 2,138,077 - Nonmajor permanent funds 400,251 63,193 Enterprise funds 4,092,321 57,536 22,986,787$ 22,986,787$ The result of amounts owed between funds are considered to be in the course of normal operations by the City. Reconciliation of the amounts owed between funds may or may not be expected to be repaid within one year in their entirety due to the recurring nature of these transactions during operations. NOTE 4 - INTERFUND TRANSFERS Interfund transfers at June 30, 2023 consisted of the following: Transfers Transfers In Out General fund 192,551$ 2,673,685$ City center - TIF district fund 1,087,234 - Capital improvement reserve fund 2,428,595 1,066,722 Nonmajor special revenue funds 210,269 216,850 Nonmajor capital project funds 54,002 - Nonmajor permanent funds 889 - Enterprise funds - 16,283 3,973,540$ 3,973,540$ Interfund transfers are the results of legally authorized activity and are considered to be in the course of normal operations. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 43 NOTE 5 - CAPITAL ASSETS The following is a summary of changes in capital assets for the year ended June 30, 2023: Balance, 7/1/22 Transfers/Balance, (Restated)Additions Disposals 6/30/23 Governmental activities Non-depreciated assets: Land 8,009,208$ 453,451$ -$ 8,462,659$ Art work 94,500 - - 94,500 Construction in progress 21,284,780 1,223,422 (21,011,448) 1,496,754 29,388,488 1,676,873 (21,011,448) 10,053,913 Depreciated assets: Land improvements 1,340,533 52,644 - 1,393,177 Buildings 17,505,785 86,372 - 17,592,157 Building improvements 1,083,399 20,857,065 - 21,940,464 Machinery and equipment 6,595,113 281,654 (42,191) 6,834,576 Furniture and fixtures 1,116,467 - - 1,116,467 Vehicles 7,150,956 405,445 (157,389) 7,399,012 Infrastructure 61,676,092 1,264,351 - 62,940,443 Right of use lease asset - 306,800 - 306,800 96,468,345 23,254,331 (199,580) 119,523,096 Less: accumulated depreciation (62,058,753) (2,828,835) 162,770 (64,724,818) 34,409,592 20,425,496 (36,810) 54,798,278 Net capital assets 63,798,080$ 22,102,369$ (21,048,258)$ 64,852,191$ Business-type activities Non-depreciated assets: Land 518,000$ -$ -$ 518,000$ Construction in progress 305,454 1,513,088 - 1,818,542 823,454 1,513,088 - 2,336,542 Depreciated assets: Buildings 5,952,242 - - 5,952,242 Building improvements 11,130 - - 11,130 Land improvements 33,167,973 - - 33,167,973 Vehicles 1,344,944 372,320 (4,000) 1,713,264 Machinery and equipment 8,063,105 378,310 (137,732) 8,303,683 Infrastructure 4,482,248 - - 4,482,248 Storm water utilities 9,671,445 - - 9,671,445 62,693,087 750,630 (141,732) 63,301,985 Less: accumulated depreciation (28,618,890) (2,023,972) 140,646 (30,502,216) 34,074,197 (1,273,342) (1,086) 32,799,769 Net capital assets 34,897,651$ 239,746$ (1,086)$ 35,136,311$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 44 NOTE 5 - CAPITAL ASSETS (CONTINUED) Current year depreciation Fire 473,260$ Public works 1,194,246 General government 395,459 Health 3,610 Police 450,628 Recreation 89,365 Library 338 City-wide 271,629 Subtotal governmental 2,878,535 Water department 183,751 Water pollution control 1,429,715 Storm water utilities 410,506 Subtotal business-type 2,023,972 Total depreciation expense 4,902,507$ NOTE 6 - LEASE RECEIVABLE A summary of the lease receivable for the year ended June 30, 2023 is as follows: Balance,Balance,Current 7/1/22 Additions Deletions 6/30/23 Portion Governmental Activities: Lease receivable -$ 490,755$ (50,100)$ 440,655$ 93,400$ The following is a summary of the lease receivable as of June 30, 2023: $490,755,Lease recievable for building space.Monthly receipts are $7,790 through 2027.440,655$ The following is a summary of the lease receivable requirements for the fiscal years ending June 30: 2024 93,400$ 2025 93,400 2026 93,400 2027 93,400 2028 67,055 440,655$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 45 NOTE 6 - LEASE RECEIVABLE (CONTINUED) The deferred revenue related to leases associated with this receivable is amortized accordingly for the term of the lease and the activity is recognized on the Statement of Activities. NOTE 7 - LONG TERM DEBT The following is a summary of changes in the long-term debt for the year ended June 30, 2023: Balance,Balance,Current 7/1/22 Additions Deletions 6/30/23 Portion Governmental Activities: Bonds payable 27,931,616$ -$ (940,452)$ 26,991,164$ 1,273,786$ Notes from direct borrowings payable 6,822,351 - (889,863) 5,932,488 892,648 Lease liabilities - 797,355 (93,900) 703,455 144,000 Total Governmental Activities 34,753,967$ 797,355$ (1,924,215)$ 33,627,107$ 2,310,434$ Business-type Activities: Bonds payable 11,528,301$ -$ (951,669)$ 10,576,632$ 968,802$ Total Business-type Activities 11,528,301$ -$ (951,669)$ 10,576,632$ 968,802$ The following is a summary of outstanding bonds payable: Bonds payable: Governmental Activities Business-type Activities Bonds $3,400,000,2004 General Obligation Bond due in annual principal installments and semiannual interest installments through December 2024.Interest is charged at a fixed rate of 4.455% per annum. Annual principal installments are $170,000.149,967$ 190,033$ $5,400,000,2016 General Obligation Bond due in annual principal installments and semiannual interest installments through November 2030.Interest is charged at a fixed rate of 4.34% per annum. Annual principal installments are $360,000.2,880,000 - $2,000,000,2010 General Obligation Bond due in annual principal installments and semiannual interest installments through June 2033.Interest is charged at a fixed rate ranging from 3.25% to 4.75% per annum. $1,000,000 was paid by ARRA funding in FY2021.- 586,032 CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 46 NOTE 7 - LONG TERM DEBT (CONTINUED) Bonds payable: Governmental Activities Business-type Activities $19,800,000,2010 General Obligation Bond due in annual principal installments and semiannual interest installments through June 2033.Interest is charged at a fixed rate of 1.00% per annum.Annual principal installments vary.$4,395,000 principal forgivness in FY2021.- 8,124,660 $5,000,000,2017 General Obligation Bond due in annual principal installments and semiannual interest installments through November 2037.Interest is charged at a fixed rate of 3.39%per annum.Annual principal installments are $333,333 beginning in November 2023.5,000,000 - $14,000,000,2019 General Obligation Bond due in annual principal installments and semiannual interest installments through November 2049.Interest is charged at a fixed rate ranging from 1.84%to 4.10%per annum.Annual principal installments are $466,667.12,599,999 - $1,864,911,2020 General Obligation Bond due in annual principal installments through January 2041.Administrative fee of 2.000%per annum.Annual principal installments range from $75,229 to $109,595.Principal forgiveness of $37,041 in FY2021.- 1,675,907 $5,000,000,2020 General Obligation Bond due in annual principal installments and semiannual interest installments through November 2036.Interest is charged at a fixed rate ranging from 0.650%to 2.206%per annum.Annual principal installments are $416,667.5,000,000 - $429,962 Vermont Municipal Bond Bank 2022 Series 1 General Obligation TIF Bond with principal due in annual installments of $35,279 to $43,132 through November of 2037.Semi-annual interest charged at a fixed rate of 2.030% per annum.429,962 - $970,038 Vermont Municipal Bond Bank 2022 Series 1 General Obligation Bond with principal due in annual installments of $38,802 with a final payment of $38,790 due in November of 2046.Semi-annual interest charged at a fixed rate of 2.030% per annum.931,236 - 26,991,164$ 10,576,632$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 47 NOTE 7 - LONG TERM DEBT (CONTINUED) The following is a summary of outstanding notes from direct borrowings payable and lease liability: Notes from direct borrowings payable: Governmental Activities Business-type Activities $5,862,236,Refinanced note payable to TD Bank,NA for Pension Financing with a fixed interest rate of 1.750%per annum.Note matures on April 6,2031 with annual principal payments of $586,224, semi-annual interest payments.4,689,788$ -$ $1,900,000,Note payable to Merchants Bank with a fixed interest rate of 1.93%per annum.Note matures on October 17,2026 with annual principal installments of $190,000,semi-annual interest payments. 760,000 - $1,125,000,Note payable to T.D.Bank,N.A.with a fixed interest rate of 2.15%per annum.Note matures on July 1,2026 with varying annual principal and interest installments. 482,700 - 5,932,488$ -$ Lease liability: $306,600,Lease payable for parking spaces.Semi-annual payments are $21,900 through 2029.262,800$ -$ The right of use lease assets associated with these lease liabilities (including amortization/depreciation applicable to the same) are presented as a separate category of Capital Assets and are grouped accordingly on the Statement of Net Position. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 48 NOTE 7 - LONG TERM DEBT (CONTINUED) The following is a summary of outstanding bond and note from direct borrowings payable principal and interest requirements for the following fiscal years ending June 30: Governmental activities: Total Principal Interest/Admin.Principal Interest/Admin.Principal Interest/Admin.Debt Service 2024 1,273,786$ 836,667$ 892,648$ 176,116$ 144,000$ -$ 3,323,217$ 2025 1,273,786 794,112 895,476 152,497 144,000 - 3,259,871 2026 1,615,469 747,012 898,422 129,272 144,000 - 3,534,175 2027 1,615,469 722,421 901,050 105,986 144,000 - 3,488,926 2028 1,650,748 679,362 586,224 82,870 83,655 - 3,082,859 2029-2033 7,544,782 2,663,824 1,758,668 123,961 43,800 - 12,135,035 2034-2038 6,067,924 1,607,982 - - - - 7,675,906 2039-2043 2,527,345 906,828 - - - - 3,434,173 2044-2048 2,488,531 386,672 - - - - 2,875,203 2049-2053 933,324 86,121 - - - - 1,019,445 26,991,164$ 9,431,001$ 5,932,488$ 770,702$ 703,455$ -$ 43,828,810$ Business-type activities: Total Principal Interest/Admin.Debt Service 2024 968,802$ 209,721$ 1,178,523$ 2025 986,278 182,548 1,168,826 2026 909,087 172,431 1,081,518 2027 927,268 154,249 1,081,517 2028 945,814 135,704 1,081,518 2029-2033 5,020,494 387,095 5,407,589 2034-2038 496,511 62,422 558,933 2039-2043 322,378 12,980 335,358 10,576,632$ 1,317,150$ 11,893,782$ Bonds Payable Notes from Direct Borrowings Payable Bonds Payable Lease Liabilities CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 49 NOTE 8 - OTHER LONG-TERM OBLIGATIONS The following is a summary of other long-term obligations for the year ended June 30, 2023: Balance, 7/1/22 Balance,Current (Restated)Additions Deletions 6/30/23 Portion Governmental Activities: Accrued benefit time 626,367$ 164,895$ (53,234)$ 738,028$ 110,704$ Post retirement incentive 643,501 86,840 (79,001) 651,340 97,701 Net pension liability 10,093,355 4,780,753 (3,292,284) 11,581,824 - Total Governmental Activities 11,363,223$ 5,032,488$ (3,424,519)$ 12,971,192$ 208,405$ Please see Notes 9, 16 and 17 for detailed information on each of the other long- term obligations. NOTE 9 - ACCRUED BENEFIT TIME 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 obligations 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, 2023, the City’s liability for accrued benefit time is $738,028. NOTE 10 - NET INVESTMENT IN CAPITAL ASSETS The following is the calculation of the net investment in capital assets for the City at June 30, 2023: Governmental Business-type Activities Activities Invested in capital assets 130,067,564$ 65,596,800$ Accumulated depreciation (64,774,918) (30,502,216) Outstanding capital related debt (33,627,107) (10,576,632) 31,665,539$ 24,517,952$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 50 NOTE 11 - NONSPENDABLE FUND BALANCES At June 30, 2023, the City had the following nonspendable fund balances: General fund: Inventory 21,796$ Prepaid items 297,956 Nonmajor special revenue funds (Schedule D)40 319,792$ NOTE 12 - RESTRICTED NET POSITION AND FUND BALANCES At June 30, 2023, the City had the following restricted net position and fund balances: Nonmajor special revenue funds (Schedule D)8,913,479$ Nonmajor capital projects funds (Schedule F)336,546 Nonmajor permanent funds (Schedule H)27,111 9,277,136$ NOTE 13 - COMMITTED FUND BALANCES At June 30, 2023, the City had the following committed fund balances: Capital improvement reserve fund 4,423,885$ Nonmajor special revenue funds (Schedule D)1,647,562 Nonmajor capital projects funds (Schedule F)2,138,077 Nonmajor permanent funds (Schedule H)24,619 8,234,143$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 51 NOTE 14 - ASSIGNED FUND BALANCES At June 30, 2023, the City had the following assigned fund balances: General fund: Neogov implementation 14,028$ Paving 200,000 ADP optimization 10,000 Trinity Education Center 13,000 School zone study and implementation 60,000 Dorset Street signal 130,000 Dispatch center upgrades 250,000 FY24 Illuminate VT 100,000 Indoor recreation design 164,136 Bike/ped bridge grant consultants 50,000 Social service agencies 16,000 Fire dept. kitchen and bathroom upgrade 100,000 Group health insurance reserve 21,000 Nonmajor special revenue funds (Schedule D)228,230 Nonmajor permanent funds (Schedule H)6,485 1,362,879$ NOTE 15 - RISK MANAGEMENT The City is exposed to various risks of loss related to limited torts; theft or damage to and destruction of assets; errors and omissions; injuries to employees; and natural disasters for which the City carries commercial insurance. The City’s property and casualty insurance is provided through Travelers Insurance, brokered by Hickock and Boardman. There have been no significant reductions in coverage from the prior year and amounts of settlements have not exceeded insurance coverage in the past three years. Management believes such coverage is sufficient to preclude any significant uninsured losses to the City. To provide health insurance coverage, the City is part of a captive arrangement through Pareto Health. The City is self-insured and has reinsurance through the captive arrangement to minimize risk. The City utilizes CBA Blue to access the Blue Cross/Blue Shield network and CBA Blue processes claims as the City’s third part administrator. Other health related benefits available include dental insurance, flexible spending accounts, life insurance, disability insurance and long-term care insurance. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 52 NOTE 15 - RISK MANAGEMENT (CONTINUED) The City of South Burlington, Vermont is a member of Vermont League of Cities and Towns (VLCT). To provide unemployment coverage, VLCT has established a separate trust of funds (VLCTUT) 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. NOTE 16 - 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 32 people presently receiving life insurance benefits with an annual cost to the City of $445 in 2023. The liability will change from year to year based on the cost of the insurance and the number of people receiving the insurance benefit. This program is no longer offered to new entrants. Employees are now offered a lump sum payout upon retirement based on contract agreements. 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 retirement is the amount credited to a sick leave bank to pay the cost of insurance and is absorbed into the operating budget annually in the amount of $125,000 to cover all payouts and health care payments. The employee may choose a payout option, which is 50% of the employee’s accumulated unused sick time. The amount is actually unfunded and treated as a “pay as you go” plan. As of June 30, 2023, the actual liability for retired employees is $643,501 and the contingent liability for active employees has been estimated at $3,624,8472. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 53 NOTE 17 - DEFINED BENEFIT PENSION PLANS CITY OF SOUTH BURLINGTON RETIREMENT INCOME PLAN Plan Description The City of South Burlington Retirement Income Plan is a single-employer defined benefit pension plan established and maintained by the City for its employees. The plan is administered by and may be amended by the City Council. The plan was established effective December 1, 1972 and contains two components, one component for public safety employees (fire and police) and the other component for all other City employees. 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. At June 30, 2023, the plan membership consisted of the following: Non-Public Membership Public Safety Safety Group Retired members currently receiving benefits 52 45 Terminated vested or inactive but still employed 29 25 Actively employed members 40 19 Total membership 121 89 As this plan is provided for and administered by the City of South Burlington, separate financial statements are not available for this plan. The City’s most recent actuarial valuation of the plan can be obtained at the office of the City Treasurer, 180 Market Street, South Burlington, Vermont 05403 or on the City’s website at www.southburlingtonvt.gov. Benefits Provided The plan provides retirement, disability and death benefits to plan members and their beneficiaries based on eligibility. Plan eligibility requirements for public safety employees is immediate upon employment, while non-public safety employees are required to reach thirty-six months of service prior to plan entry. Effective July 1, 2019, no new employees may enroll in the plan. Employees who are members of the Water Pollution Control Employees Association (WPC) who are hired on or after January 1, 2011 and employees who are not members of either the WPC or the South Burlington City Hall & Public Works Employees’ Association (SBCH&PW) unless that employee was a participant in the plan on June 30, 2010 are ineligible for the plan. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 54 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Benefits available to each group are based on average final compensation (AFC) and years of creditable service and are summarized below: Plan Provisions Public Safety Employees Non-public Safety Employees Normal retirement age: *or other termination of service Retirement * on or After Age Attainment of age 65 Prior to July 1, 2001 60 July 1, 2001 55 July 1, 2005 54 July 1, 2007 53 July 1, 2009 52 July 1, 2010 51 July 1, 2011 50 Benefit formula 2.5% of average annual compensation per year of service with police or fire departments up to 25 years 1.75% of average compensation times years of service completed with city departments other than non-public safety departments CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 55 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Plan Provisions Public Safety Employees Non-public Safety Employees Post-retirement COLA and social security offset for members retiring on or after normal retirement date: Members who retire on or after their Normal Retirement Date will receive an annual increase in their monthly benefit of 3% until social security benefits commence. Upon commencement of social security, the plan benefit is reduced by a fraction of the member’s social security benefit based on the member’s Years of Service at retirement. Years of Service at Later of June 30, 2002 or Retirement PIA Offset Percentage 25 or less 50% 26 45% 27 40% 28 35% 29 30% 30 or more 25% SBCH&PW members - effective July 1, 2009, total compensation; WPC members - effective July 1, 2007, total compensation, including scheduled and unscheduled overtime, on-call pager pay; for all other non-public safety employees - base pay CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 56 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Average annual compensation: *effective July 1, 2009, plan compensation includes overtime up to 25% of base pay Plan compensation* is averaged over high three consecutive years of service. Compensation is annualized for the years in which the member completes less than 2,000 hours of service, but at least 1,000 hours of service Plan compensation is averaged over high three consecutive years of service that produce highest average. Compensation is annualized for the years in which the member completes less than 2,000 hours of service, but at least 1,000 hours of service Normal annuity form Life annuity Life annuity Accrued benefit definition Unit credit accrual, based on years of service completed at determination date Unit credit accrual, based on years of service completed at determination date Early retirement Age 50, accrued benefit reduced 10% per year for benefit commencement prior to normal retirement date Age 55, accrued benefit reduced by 1/15 per year for benefit commencement prior to 65 Disability Actuarial equivalent of accrued benefit Actuarial equivalent of accrued benefit Pre-retirement death benefit Actuarial equivalent of accrued benefit Actuarial equivalent of accrued benefit Vesting 7-Year graded - 20% after 3 years, 20% per year thereafter, 100% after 7 years 7-Year graded - 20% after 3 years, 20% per year thereafter, 100% after 7 years Contributions The authority to establish and amend the contribution requirement of the City and its active employees lies with the City Council. The City Council establishes rates based on an actuarially determined rate recommended by an independent actuary. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City’s contribution requirement for the year ended June 30, 2023 of $1,175,950 was made in accordance with actuarially determined requirements through an actuarial valuation performed as of July 1, 2023. This contribution represents 21.32% of covered payroll. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 57 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) All active public safety plan members are required to contribute 7.50% (police) and 7.50% (fire) of their annual compensation on a pre-tax basis to the plan. A record of such Mandatory Member Contributions shall be maintained along with interest credited thereto. A plan member is fully vested in the amount standing to his credit in his Mandatory Member Contribution Account as of any date. Each plan member will be 100% vested in his accrued compensation benefit after completion of seven or more years of credited service. For the year ended June 30, 2023, the average active employee contribution rate was 7.25% of annual pay. Investments Investment policy. The pension plan’s policy in regard to the allocation of invested assets is established and may be amended by the City Council, by a majority vote of their members. It is the policy of the City Council to pursue an investment strategy that reduces risk through the prudent diversification of the portfolio across a broad selection of distinct asset classes. The pension plan’s investment policy discourages the use of cash equivalents, except for liquidity purposes and aims to refrain from dramatically shifting asset class allocations over short time spans. The following was the Board’s adopted asset allocation policy as of June 30, 2020: Target Asset Class Allocation US Equity - Large Cap 25.00% US Equity - Small/Mid Cap 5.00% Non-US Equity - Developed 20.00% Non-US Equity - Emerging 5.00% US Corporate Bonds - Core 17.00% US Corporate Bonds - Long Duration 5.00% US Corporate Bonds - High Yield 11.00% Non- US Debt - Developed 0.00% Non- US Debt - Emerging 4.00% US Treasuries (Cash Equivalents)0.00% TIPS (Inflation Protected)0.00% Real Estate 8.00% Total 100.00% Rate of return - For the year ended June 30, 2023, the annual money-weighted rate of return on pension plan investments, net of pension plan investment expense, was 10.19%. The money-weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 58 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Net Pension Liability The City’s net pension liability was measured as of July 1, 2022 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The components of the net pension liability of the City at June 30, 2023 were as follows: Total pension liability 50,459,567$ Plan fiduciary net position 43,005,542 Net pension liability 7,454,025$ Plan fiduciary net position as a percentage of the total pension liability 85.23% Net pension liability as a percentage of covered valuation payroll 145.11% Significant Actuarial Assumptions and Methods The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial valuation date July 1, 2022 Valuation interest (pre- and post- retirement) 7.25% Compensation annual rate of increase Public Safety - 5.00%; Non-public Safety - 4.00% Valuation compensation: Compensation paid during the plan year preceding the valuation date Public Safety: Base compensation plus overtime not to exceed 25% of base pay Non-public Safety: Total compensation Employee contribution rate (public safety only) Police - 7.50% Fire - 7.50% Assumed retirement age Public Safety - Age 53, Non- Public Safety -Normal retirement age, Terminated Public Safety Participants - Age 50 Mortality (pre- and post-retirement) NPS - Pri-2012 Total Dataset projected generationally with scale MP2021 CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 59 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Employee turnover Scale Crocker-Sarason T-3 IRC Section 401(a)(17) maximum compensation limit $290,000 IRC Section 415(b) maximum benefit limit $230,000 Actuarial cost method Entry Age Normal The long-term expected rate of return on pension plan assets was determined using a building block method in which best-estimate ranges of expected future real rates of return (net of pension plan investment expense and inflation) are developed for each asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rate of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic real rates of return for each major asset class included in the pension plan’s target asset allocation as of July 1, 2022 are summarized on the table below: Long-term Expected Real Rate of Asset Class Return US Equity - Large Cap 5.72% US Equity - Small/Mid Cap 6.77% Non-US Equity - Developed 6.55% Non-US Equity - Emerging 8.54% US Corporate Bonds - Core 1.14% US Corporate Bonds - Long Duration 1.73% US Corporate Bonds - High Yield 3.22% Non- US Debt - Developed 0.29% Non- US Debt - Emerging 3.75% US Treasuries (Cash Equivalents)-0.33% TIPS (Inflation Protected)0.32% Real Estate 5.41% Total 4.72% Inflation 2.24% Total Return 6.96% CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 60 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Discount Rate The discount rate used to measure the total pension liability was 7.25%. The projection of cash flows used to determine the discount rate assumed that plan member contributions will continue to be made at the current rate and that contributions will be made at rates at least equal to the actuarially determined contribution rates. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the expected long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.25%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.25%) or 1 percentage point higher (8.25%) than the current rate: 1%Discount 1% Decrease Rate Increase Discount rate 6.25%7.25%8.25% City's proportionate share of the net pension liability 45,231,960$ 50,459,567$ 56,731,768$ Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the fiduciary fund section of this financial report. Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $559,577. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 61 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience 181,543$ 39,406$ Changes of assumptions - - Net difference between projected and actual earnings on pension plan investments 5,185,129 3,644,323 Changes in proportion and differences between contributions and proportionate share of contributions - 5,391 Contributions subsequent to the measurement date - - Total 5,366,672$ 3,689,120$ Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan year ended June 30: 2024 408,505$ 2025 89,431 2026 1,444,284 2027 (182,399) 2028 20,567 Thereafter (102,835) VERMONT MUNICIPAL EMPLOYEES’ RETIREMENT SYSTEM Plan Description The Vermont Municipal Employees’ Retirement System (VMERS) is a cost sharing, multi-employer defined benefit pension plan that is administered by the State Treasurer and its Board of Trustees. The plan was established effective July 1, 1975 and is governed by Title 24, V.S.A. Chapter 125. It is designed for persons employed on a regular basis by a school district or by a supervisory union for no fewer than 1,040 hours in a year and for no fewer than 30 hours a week for the school year, as defined in 16 V.S.A. § 1071 or for no fewer than 1,040 hours in a year and for no fewer than 24 hours a week year-round; provided, however, that if a person who was employed on a regular basis by a school district as either a special education or transportation employee and who was transferred to and is working in a supervisory union in the same capacity pursuant to 16 V.S.A. § 261a(a)(6) or (8)(E) and if that person is also employed on a regular basis by a school district within the supervisory union, then the person is an "employee" if these CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 62 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) criteria are met by the combined hours worked for the supervisory union and school district. The term shall also mean persons employed on a regular basis by a municipality other than a school district for no fewer than 1,040 hours in a year and for no fewer than 24 hours per week, including persons employed in a library at least one-half of whose operating expenses are met by municipal funding. For the year ended June 30, 2021 (the most recent data available), the retirement system consisted of 16,158 participating members. The general administration and responsibility for formulating administrative policy and procedures of the Retirement System for its members and their beneficiaries is vested in the Board of Trustees consisting of five members. They are the State Treasurer, two employee representatives elected by the membership of the system and two employer representatives - one elected by the governing bodies of participating employers of the system and one selected by the Governor from a list of four nominees. The list of four nominees is jointly submitted by the Vermont League of Cities and Schools and the Vermont School Boards Association. All assets are held in a single trust and are available to pay retirement benefits to all members. Benefits available to each group are based on average final compensation (AFC) and years of creditable service. VMERS does not issue stand-alone financial reports, but instead are included as part of the State of Vermont’s Annual Comprehensive Financial Report. The Annual Report may be viewed on the State’s Department of Finance and Management website at: Annual Comprehensive Financial Report | Department of Finance and Management (vermont.gov). Benefits Provided The pension plan is divided into four membership groups: • Group A - general employees whose legislative bodies have not elected to become a member of Group B or Group C • Groups B and C - general employees whose legislative bodies have elected to become members of Group B or Group C • Group D - sworn police officers, firefighters and emergency medical personnel The City participates in Groups B, C and D. Benefits available to each group are based on average final compensation (AFC) and years of creditable service and are summarized below: CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 63 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) VMERS Group A Group B Group C Group D Normal service retirement eligibility Age 65 with 5 years of service or age 55 with 35 years of service Age 62 with 5 years of service or age 55 with 30 years of service Age 55 with 5 years of service Age 55 with 5 years of service Average Final Compensation (AFC) Highest 5 consecutive years Highest 3 consecutive years Highest 3 consecutive years Highest 2 consecutive years Benefit formula - Normal Service Retirement (no reduction) 1.4% x creditable service x AFC 1.7% x creditable service x AFC + previous service; 1.4% x Group A service x AFC 2.5% x creditable service x AFC + previous service; 1.4% x Group A service x AFC; 1.7% x Group B x AFC 2.5% x creditable service x AFC + previous service; 1.4% x Group A service x AFC; 1.7% x Group B x AFC; 2.5% x Group C service x AFC Maximum Benefit Payable 60% of AFC 60% of AFC 50% of AFC 50% of AFC Post- Retirement COLA 50% of CPI, up to 2% per year 50% of CPI, up to 3% per year 50% of CPI, up to 3% per year 50% of CPI, up to 3% per year Early Retirement Eligibility Age 55 with 5 years of service Age 55 with 5 years of service N/A Age 50 with 20 years of service Early Retirement Reduction 6% per year from age 65 ** 6% per year from age 62 ** N/A No reduction ** A special early retirement factor of 3% per year only for municipal police officers who have attained age 60 CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 64 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Members of all groups may qualify for vested deferred allowance, disability allowances and death benefit allowance subject to meeting various eligibility requirements. Benefits are based on AFC and service. Contributions Title 24 VSA Chapter 125 of Vermont Statutes grants the authority to the Retirement Board to annually review the amount of municipalities’ contributions as recommended by the actuary of the retirement system in order to achieve and preserve the financial integrity of the fund and to certify the rates of contributions payable by employers. The Board of Trustees also certifies the rates of contribution payable by employees. Contribution rates for each group as of July 1, 2022 are as follows: VMERS Group A Group B Group C Group D Employee Contributions 3.500% of gross salary 5.875% of gross salary 11.000% of gross salary 12.350% of gross salary Employer Contributions 5.000% of gross salary 6.500% of gross salary 8.250% of gross salary 10.850% of gross salary Employee contributions are withheld pre-income tax by the City and are remitted to the State of Vermont. Such withholdings for the year ended June 30, 2023 totaled $477,179. The City contributed $448,024 for the year ended June 30, 2023. The City’s total payroll for the year ended June 30, 2023 for all employees covered under this plan was $6,218,380. Pension Liabilities At June 30, 2023, the City reported a liability of $4,127,799 for its proportionate share of the net pension liabilities for each plan. The net pension liabilities were measured as of June 30, 2022 and the total pension liabilities used to calculate the net pension liabilities was determined by an actuarial valuation as of June 30, 2021. The City’s proportion of the net pension liabilities were based on a projection of the City’s long-term share of contributions to each pension plan relative to the projected contributions of all participating towns, actuarially determined. At June 30, 2022, the City’s proportion was 1.36064% for VMERS, which was an increase of 0.20639% from its proportion measured as of June 30, 2021 for VMERS. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 65 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended June 30, 2023, the City recognized pension expense of $5,935,210 for the VMERS plan. At June 30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience 310,000$ -$ Changes of assumptions 211,032 - Net difference between projected and actual earnings on pension plan investments 670,150 - Changes in proportion and differences between contributions and proportionate share of contributions 495,425 - Contributions subsequent to the measurement date 448,024 - Total 2,134,631$ -$ VMERS $448,024 reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: VMERS Plan year ended June 30: 2023 555,348$ 2024 435,390 2025 199,776 2026 496,092 2027 - Thereafter - CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 66 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Significant Actuarial Assumptions and Methods The total pension liability for the June 30, 2022 measurement date was determined by rolling forward the total pension liability as of June 30, 2021 to June 30, 2022. The total pension liability was calculated using the following actuarial assumptions: Investment Rate of Return: 7.00%, net of pension plan investment expense, including inflation. Inflation: 2.30% Salary Increases: Varying, service-based rates from 0-10 years of service, then a single rate of 4.50% (includes assumed inflation rate of 2.30%) for all subsequent years. Deaths After Retirement: Mortality rates for pre-retirement, healthy retirees and disabled retirees in the VMERS plan for Groups A, B, C and D were based on historical and current demographic data, adjusted to reflect health characteristics of the underlying groups and estimated future experience and professional judgment. The mortality tables were then adjusted to future years using the generational projection to reflect future mortality improvement between the measurement date and those years. Pre-Retirement: • Groups A/B/C - 40% PubG-2010 General Employee Amount-Weighted below-median and 60% of PubG-2010 General Employee Amount-Weighted, with generational projection using Scale MP-2019. • Group D - PubG-2010 General Employee Amount-Weighted above-median, with generational projection using scale MP-2019. Healthy Post-Retirement - Retirees: • Groups A/B/C - 104% of 40% PubG-2010 General Healthy Retiree Amount- Weighted below-median and 60% of PubG-2010 General Healthy Retiree Amount-Weighted, with generational projection using scale MP-2019. • Group D - PubG-2010 General Healthy Retiree Amount-Weighted, with generational projection using scale MP-2019. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 67 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Healthy Post-Retirement - Beneficiaries: • Groups A/B/C - 70% Pub-2010 Contingent Survivor Amount-Weighted below-median and 30% of Pub-2010 Contingent Survivor Amount-Weighted, with generational projection using scale MP-2019. • Group D - Pub-2010 Contingent Survivor Amount-Weighted, with generational projection using scale MP-2019. Disabled Post-Retirement: • All Groups - PubNS-2010 Non-Safety Disabled Retiree Amount-Weighted Mortality Table with generational projection using Scale MP-2019. Inactive Members: Valuation liability equals 100% of accumulated contributions. Inactive who are vested immediately become Deferred Members and the liabilities for all Deferred Members are based on the accrued benefit. Future Administrative Expenses: An expense adjustment based on actual expenses for the previous year is reflected in the development of recommended employer contribution levels. Unknown Data for Participants: The same as those exhibited by participants with similar known characteristics. If not specified, participants are assumed to be male. Percent Married: 85% of male members and 50% of female members are assumed to be married. Spouse’s Age: Husbands are assumed to be three years older than their wives. Cost-of-Living Adjustments: Assumed to occur on January 1 following one year of retirement at the rate of 1.10% per annum for Group A members and 1.20% per annum for Groups B, C and D members (beginning at Normal Retirement eligibility age for members who elect reduced early retirement, at age 62 for members of Group A, B and D who receive a disability retirement benefit and at age 55 for members of Group C who receive a disability retirement benefit). The January 1, 2022 COLA is 2.00% for Group A members and 2.30% for Group B, C and D members. The January 1, 2023 COLA is 2.00% for Group A members and 3.00% for Group B, C and D members. Actuarial Cost Method: The Projected Benefit Cost Method is used. Normal contribution rates for each Group are equal to rates from the prior year, adjusted for increases or decreases in rates due to assumption changes or plan provision changes. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 68 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) A smoothing asset valuation method was used for funding purposes in the VMERS plan, under which the value of assets for actuarial purposes equals market value less a five-year phase-in of the differences between actual and assumed investment return. Then value of assets for actuarial purposes may not differ from the market value of assets by more than 20%. The long-term expected rate of return on plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of investment expense and inflation) developed for each major asset class. These best estimate ranges were combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Best estimates of arithmetic rates of return for each major asset class included in the target asset allocation as of June 30, 2022 are summarized in the following table: Long-term Expected Target Real Rate of Asset Class Allocation Return Passive Global Equities 24.00%4.30% Active Global Equities 5.00%4.30% US Equity - Large Cap 4.00%3.25% US Equity - Small/Mid Cap 3.00%3.75% Non-US Developed Market Equities 7.00%5.00% Emerging Market Debt 4.00%3.50% Core Fixed Income 19.00%0.00% Private and Alternative Credit 10.00%4.75% US TIPS 3.00%-0.50% Core Real Estate 3.00%3.50% Non-Core Real Estate 4.00%6.00% Private Equity 10.00%6.50% Infrastructure/Farmland 4.00%4.25% Discount Rate The discount rate used to measure the total pension liability was 7.00% for the VMERS plan. The projection of cash flows used to determine the discount rate assumed that contributions will continue to be made in accordance with the current funding policy which exceeds the actuarially determined contribution rate. Based on these assumptions, the fiduciary net position was projected to be available to make all projected future benefit payments to current System members. The assumed discount rate has been determined in accordance with the method prescribed by GASB 68. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 69 NOTE 17 - DEFINED BENEFIT PENSION PLANS (CONTINUED) Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability calculated using the discount rate of 7.00% for the VMERS plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.00%) or 1 percentage point higher (8.00%) than the current rate: Decrease Rate Increase VMERS: Discount rate 6.00%7.00%8.00% City's proportionate share of the net pension liability 6,185,326$ 4,127,799$ 2,435,398$ Pension Plan Fiduciary Net Position The schedule of employer allocations and schedule of pension amounts by employer are prepared on the accrual basis of accounting in accordance with U.S. generally accepted accounting principles. The schedules present amounts that are elements of the financial statements of VMERS or their participating employers. VMERS does not issue stand-alone financial reports, but instead are included as part of the State of Vermont’s Annual Comprehensive Financial Report. The Annual Report can be viewed on the State’s Department of Finance and Management website at: Annual Comprehensive Financial Report | Department of Finance and Management (vermont.gov). NOTE 18 - DEFERRED COMPENSATION PLAN MISSION SQUARE RETIREMENT 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. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 70 NOTE 18 - DEFERRED COMPENSATION PLAN (CONTINUED) 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 ordinary prudent investor. 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 2023, 2022, 2021 and 2020 were $691,363, $810,859, $770,266 and $662,710, respectively. NOTE 19 - DEFICIT FUND BALANCE At June 30, 2023 the City had the following deficit fund balance: City Center - TIF funds 587,603$ Nonmajor special revenue funds (Schedule D): Indoor recreation center (285)164,136 Nonmajor permanent funds (Schedule H) Community music festival 63,193 814,932$ The City is currently reviewing the condition of these overdrafts and a plan to fund them. NOTE 20 - COMMITMENTS AND CONTINGENCIES The City of South Burlington, Vermont contracts for 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 provide for hourly wages for the CWD employees. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO FINANCIAL STATEMENTS JUNE 30, 2023 71 NOTE 20 - COMMITMENTS AND CONTINGENCIES (CONTINUED) 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. NOTE 21 - TAX INCREMENT FINANCING DISTRICT - COMPLIANCE In accordance with Vermont Statutes, Title 24, Chapter 053, Subchapter 005, Section 1901, the TIF information included in the City’s annual audited financial statements have been subjected to the above-mentioned section. NOTE 22 - COLLATERALIZATION At June 30, 2023, the City has an outstanding irrevocable stand-by letter of credit issued by FHL Bank of Pittsburg serving as collateral for its deposits held at TD Bank, NA.. There were no draws for the year ended June 30, 2023. NOTE 23 - RESTATEMENTS In 2023, the City determined that certain transactions in prior years had been recorded incorrectly, therefore, a restatement to the 2022 government-wide and business- type activities, accrued benefit time and capital assets were required. The beginning net position and capital asset balance were restated by $282,643 to correct the capital asset balance for governmental activities. The accrued benefit time beginning balance was increased by $354,724. The resulting restatements decreased governmental activities net position by $72,081 from $40,247,918 to $40,175,837. The nonmajor capital projects funds and permanent funds were restated by a decrease of $20,609 to move the Penny for Paths fund to the nonmajor capital projects funds. There was no effect on the governmental activities net position. The business-type activities were restated by an increase of $305,454 for capital assets. The net restatement increased net position from $29,768,592 to $30,092,046. Required Supplementary Information 72 Required supplementary information includes financial information and disclosures that are required by the Governmental Accounting Standards Board but are not considered a part of the basic financial statements. Such information includes: ● Budgetary Comparison Schedule - Budgetary Basis - Budget and Actual -General Fund ● Schedule of Proportionate Share of the Net Pension Liability ● Schedule of Contributions - Pensions ● Schedule of Changes in Net Pension Liability and Related Ratios - Employees’ Pension Plan ● Schedule of Contributions - Employees’ Pension Plan ● Schedule of Investment Returns ● Schedule of Funding Progress - Employees’ Pension Plan ● Notes to Required Supplementary Information SCHEDULE 1 CITY OF SOUTH BURLINGTON, VERMONT BUDGETARY COMPARISON SCHEDULE - BUDGETARY BASIS BUDGET AND ACTUAL - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 73 Variance Actual Positive Original Final Amounts (Negative) Budgetary Fund Balance, July 1 4,820,689$ 4,820,689$ 4,820,689$ -$ Resources (Inflows): General tax revenue - municipal and education 67,112,455 67,112,455 68,125,106 1,012,651 Intergovernmental revenue 247,346 247,346 1,161,887 914,541 Charges for services 5,572,430 5,572,430 5,796,323 223,893 Other revenue 26,500 26,500 39,025 12,525 Transfers from other funds - - 192,551 192,551 Amounts Available for Appropriation 77,779,420 77,779,420 80,135,581 2,356,161 Charges to Appropriations (Outflows): General government 10,078,671 10,078,671 10,151,926 (73,255) Public safety 9,981,449 9,981,449 9,501,048 480,401 Public works 3,346,939 3,346,939 3,455,999 (109,060) Social services 791,250 791,250 803,918 (12,668) Recreation and culture 1,964,676 1,964,676 1,932,114 32,562 Debt service: Principal 1,211,204 1,211,204 1,211,245 (41) Interest 279,090 279,090 269,218 9,872 Education 44,497,252 44,497,252 44,497,252 - Transfers to other funds 808,200 2,673,685 2,673,685 - Total Charges to Appropriations 72,958,731 74,824,216 74,496,405 327,811 Budgetary Fund Balance, June 30 4,820,689$ 2,955,204$ 5,639,176$ 2,683,972$ Budgeted Amounts SCHEDULE 2 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF PROPORTIONATE SHARE OF THE NET PENSION LIABILITY LAST 10 FISCAL YEARS* See accompanying independent auditor’s report and notes to financial statements. 74 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 VMERS: Proportion of the net pension liability 1.36%1.15%1.09%0.93%0.73%0.58%0.52%0.41%0.31%0.29% Proportionate share of the net pension liability 4,127,799$ 1,698,871$ 2,754,179$ 1,619,994$ 1,019,989$ 707,670$ 669,756$ 314,202$ 31,441$ 112,493$ Covered payroll 4,980,671$ 4,011,214$ 3,642,168$ 2,869,100$ 2,223,744$ 1,734,340$ 1,438,095$ 1,059,889$ 962,454$ 907,232$ Proportionate share of the net pension liability as a percentage of its covered payroll 82.88%42.35%75.62%56.46%45.87%40.80%46.57%29.64%3.27%12.40% Plan fiduciary net position as a percentage of the total pension liability 73.60%86.29%74.52%80.35%82.60%83.64%80.95%87.42%98.32%92.71% * The amounts presented for each fiscal year were determined as of June 30 and are for those years for which information is available. SCHEDULE 3 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF CONTRIBUTIONS - PENSIONS LAST 10 FISCAL YEARS* See accompanying independent auditor’s report and notes to financial statements. 75 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 VMERS: Contractually required contribution 448,024$ 336,103$ 256,629$ 220,562$ 161,387$ 122,306$ 95,389$ 79,095$ 147,760$ 126,668$ Contributions in relation to the contractually required contribution (448,024) (336,103) (256,629) (220,562) (161,387) (122,306) (95,389) (79,095) (147,760) (126,668) Contribution deficiency (excess)-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ Covered payroll 6,218,380$ 4,980,671$ 4,011,214$ 3,642,168$ 2,869,100$ 2,223,744$ 1,734,340$ 1,438,095$ 1,059,889$ 962,454$ Contributions as a percentage of covered payroll 7.20%6.75%6.40%6.06%5.63%5.50%5.50%5.50%13.94%13.16% * The amounts presented for each fiscal year are for those years for which information is available. SCHEDULE 4 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF CHANGES IN NET PENSION LIABILITY AND RELATED RATIOS EMPLOYEES’ PENSION PLAN LAST 10 FISCAL YEARS* See accompanying independent auditor’s report and notes to financial statements. 76 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Total pension liability Service cost 817,648$ 775,869$ 992,644$ 992,682$ 1,049,187$ 966,711$ 932,286$ 804,013$ 764,636$ 649,470$ Interest 3,496,423 3,341,616 3,237,160 3,090,936 2,949,206 2,756,390 2,548,930 2,337,631 2,177,059 1,970,702 Changes in benefit terms - - - - - - - - - - Difference between actual and expectedexperience 189,588 161,558 (194,956) 57,126 (294,839) 896,053 52,789 445,709 558,135 3,091,068 Changes of assumptions - - (16,031) (145,632) 165,987 (360,328) 1,047,528 600,947 (70,880) (1,677,930) Benefit payments (2,638,820) (2,248,480) (2,077,646) (1,929,009) (1,816,072) (1,615,723) (1,413,887) (1,328,091) (1,247,876) (1,315,889) Net change in total pension liability 1,864,839 2,030,563 1,941,171 2,066,103 2,053,469 2,643,103 3,167,646 2,860,209 2,181,074 2,717,421 Total pension liability - beginning 48,594,728 46,564,165 44,622,994 42,556,891 40,503,422 37,860,319 34,692,673 31,832,464 29,651,390 26,933,969 Total pension liability - ending (a)50,459,567$ 48,594,728$ 46,564,165$ 44,622,994$ 42,556,891$ 40,503,422$ 37,860,319$ 34,692,673$ 31,832,464$ 29,651,390$ Plan fiduciary net position Contributions - employer 1,275,950$ 1,054,731$ 1,302,918$ 1,384,798$ 1,394,798$ 1,246,468$ 1,037,443$ 765,860$ 1,192,750$ -$ Contributions - employee 305,084 368,209 373,582 379,719 349,543 337,958 313,535 305,476 297,142 310,118 Net investment income 3,863,084 (4,876,347) 9,685,649 1,020,614 1,695,376 2,415,936 3,457,472 (306,473) 451,391 4,043,122 Benefit payments (2,638,820) (2,248,480) (2,077,646) (1,929,009) (1,816,072) (1,615,723) (1,413,888) (1,328,091) (1,247,876) (1,315,889) Other - - - - - - - - - - Net change in plan fiduciary net position 2,805,298 (5,701,887) 9,284,503 856,122 1,623,645 2,384,639 3,394,562 (563,228) 693,407 3,037,351 Plan fiduciary net position - beginning 40,200,244 45,902,131 36,617,628 35,761,506 34,137,861 31,753,222 28,358,660 28,921,888 28,228,481 25,191,130 Plan fiduciary net position - ending (b)43,005,542$ 40,200,244$ 45,902,131$ 36,617,628$ 35,761,506$ 34,137,861$ 31,753,222$ 28,358,660$ 28,921,888$ 28,228,481$ Net pension liability - ending (a) - (b)7,454,025$ 8,394,484$ 662,034$ 8,005,366$ 6,795,385$ 6,365,561$ 6,107,097$ 6,334,013$ 2,910,576$ 1,422,909$ Plan fiduciary net position as a percentage of the total pension liability 85.23%82.73%98.58%82.06%84.03%84.28%83.87%81.74%90.86%95.20% Covered payroll 5,136,880$ 5,529,140$ 5,983,545$ 6,730,654$ 6,749,677$ 7,041,414$ 7,257,365$ 7,064,300$ 6,743,881$ 6,333,287$ Net pension liability as a percentage of its covered payroll 145.11%151.82%11.06%118.94%100.68%90.40%84.15%89.66%43.16%22.47% * The amounts presented for each fiscal year were determined as of July 1 and are for those years for which information is available. SCHEDULE 5 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF CONTRIBUTIONS - EMPLOYEES’ PENSION PLAN LAST 10 FISCAL YEARS* See accompanying independent auditor’s report and notes to financial statements. 77 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 Actuarially determined contribution 1,175,950$ 1,029,383$ 1,313,346$ 1,302,918$ 1,384,798$ 1,246,468$ 1,037,443$ 765,860$ 569,198$ 569,550$ Contributions in relation to the actuarially determined contribution (1,275,950) (1,054,731) (1,302,918) (1,384,798) (1,394,798) (1,246,468) (1,037,443) (765,860) (569,198) (623,552) Contribution deficiency (excess)(100,000)$ (25,348)$ 10,428$ (81,880)$ (10,000)$ -$ -$ -$ -$ (54,002)$ Covered payroll 5,983,545$ 5,983,545$ 5,983,545$ 6,730,654$ 6,749,677$ 7,041,414$ 7,257,365$ 7,064,300$ 6,743,881$ 6,743,881$ Contributions as a percentage of covered payroll 21.32%17.63%21.78%20.57%20.66%17.70%14.30%10.84%8.44%9.25% Notes to schedule: Valuation date:July 1, 2022Actuarial cost method:Entry age normal. Recognition period for liabilities Average future service period of active employees of 14.0795 years. Recognition period for assets 5 years. Asset-valuation method:Market value of assets as of the measurement date. Actuarial assumptions Investment rate of return:7.25% Discount rate:7.25%Compensation annual rate of increase:Public Safety 5.00% annually, Non-Public Safety 4.00% annually Cost of living adjustment (public safety employees only) Employee contribution rate (public safety only):Police 7.50%, Fire 7.50% Assumed retirement age: Pre- and post-retirement mortality:NPS - Pri-2012 Total Dataset projected generationally with scale MP2021 Employee turnover:Scale Crocker-Sarason T-3 IRC Section 401(a)(17) maximum compensation limit:$290,000IRC Section 415(b) maximum benefit limit:$230,000 * The amounts presented for each fiscal year were determined as of July 1 and are for those years for which information is available. Members who retire on or after their Normal Retirement Date will receive anannualincreaseintheirmonthlybenefitof3%until social securitybenefits commence.Upon commencement of social security,the plan benefit is reduced by a fraction of the member’s social security benefit based on the member’s Years of Service at retirement. Public Safety -Age 53,Non-Public Safety -Normal retirement age,Terminated Public Safety Participants - Age 50 SCHEDULE 6 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF INVESTMENT RETURNS LAST 10 FISCAL YEARS* See accompanying independent auditor’s report and notes to financial statements. 78 2023 2022 2021 2020 2017 2016 2015 Annual money-weighted rate of return, net of investment expense 10.19%6.17%6.86%7.25%7.25%7.50%7.50% * The amounts presented for each fiscal year were determined as of July 1 and are for those years for which information is available. SCHEDULE 7 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF FUNDING PROGRESS - EMPLOYEES’ PENSION PLAN LAST 10 FISCAL YEARS* See accompanying independent auditor’s report and notes to financial statements. 79 PV of Accumulated Fair Value Plan Benefits -Unfunded UAAL as a Actuarial of Plan Frozen Initial Plan Funded Covered Percentage of Valuation Assets Liability Benefits Ratio Payroll Covered Payroll Date (a)(b)(b - a)(a/b)(c)((b-a)/c) 7/1/11 22,140,718$ 20,777,281$ (1,363,437)$ 106.56%6,004,876$ -22.71% 7/1/12 22,354,550 22,362,659 8,109 99.96%5,623,012 0.14% 7/1/13 25,206,769 23,824,374 (1,382,395) 105.80%5,611,009 -24.64% 7/1/14 28,852,033 24,080,967 (4,771,066) 119.81%6,333,287 -75.33% 7/1/15 28,921,889 26,436,535 (2,485,354) 109.40%6,743,881 -36.85% 7/1/16 28,358,660 28,741,050 382,390 98.67%7,064,300 5.41% 7/1/17 31,753,223 32,098,384 345,161 98.92%7,257,365 4.76% 7/1/18 34,137,861 34,203,530 65,669 99.81%7,041,414 0.93% 7/1/19 35,761,506 36,297,464 535,958 98.52%6,749,677 7.94% 7/1/20 36,617,628 38,180,434 1,562,806 95.91%6,730,654 23.22% 7/1/21 45,902,131 41,444,055 (4,458,076) 110.76%6,730,654 -66.24% 7/1/22 40,200,244 42,727,562 2,527,318 94.09%5,529,140 45.71% 7/1/23 43,005,542 44,014,522 1,008,980 97.71%5,136,880 19.64% * The amounts presented for each fiscal year were determined as of July 1 and are for those years for which information is available. CITY OF SOUTH BURLINGTON, VERMONT NOTES TO REQUIRED SUPPLEMENTARY INFORMATION FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 80 Changes of Assumptions VMERS Pension Plan: The July 1, 2023 COLA assumption was increased from 2.00% to 3.00% for Groups B, C and D members. Employees’ Pension Plan: There have been no changes in actuarial assumptions since the last measurement date. Other Supplementary Information 81 Other supplementary information includes financial statements and schedules not required by the Governmental Accounting Standards Board, nor a part of the basic financial statements, but are presented for purposes of additional analysis. ● Budgetary Comparison Schedule - Budgetary Basis - Budget and Actual - General Fund Revenues ● Schedule of Departmental Operations - General Fund ● 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 Projects 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 BUDGETARY COMPARISON SCHEDULE - BUDGETARY BASIS BUDGET AND ACTUAL - GENERAL FUND REVENUES FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 82 Variance Original Final Positive Budget Budget Actual (Negative) REVENUES General tax revenues: Property taxes 18,202,814$ 18,202,814$ 18,316,230$ 113,416$ Property taxes (education)44,497,252 44,497,252 44,497,252 - Local options tax 4,033,389 4,033,389 4,940,340 906,951 Interest and penalties 379,000 379,000 371,283 (7,717) Intergovernmental revenues: Highway aid - - 450,902 450,902 Grants 247,346 247,346 710,985 463,639 Charges for services: Administrative services 1,463,078 1,463,078 1,399,828 (63,250) Fire department 489,000 489,000 1,185,734 696,734 Other city clerk fees 383,100 383,100 265,905 (117,195) Building and sign permits - - 83,307 83,307 Electrical inspections 65,000 65,000 216,585 151,585 Other planning fees 383,100 383,100 493,671 110,571 Vermont district court - - 3,650 3,650 Police department 517,997 517,997 255,068 (262,929) Highway department 1,394,855 1,394,855 764,364 (630,491) Recreation 145,000 145,000 134,512 (10,488) Ambulance 721,000 721,000 978,138 257,138 Library 10,300 10,300 15,561 5,261 Other income Miscellaneous 26,500 26,500 39,025 12,525 Transfers from other funds - - 192,551 192,551 Total amounts available for appropriation 72,958,732$ 72,958,732$ 75,314,891$ 2,356,159$ SCHEDULE B CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF DEPARTMENTAL OPERATIONS - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2023 83 Variance Original Budget Final Positive Budget Adjustments Budget Actual (Negative) General government City council 149,799$ -$ 149,799$ 95,751$ 54,048$ Employee benefits 6,032,914 - 6,032,914 6,306,718 (273,804) City manager 472,492 - 472,492 369,299 103,193 City clerk 285,901 - 285,901 313,176 (27,275) Legal/accounting/actuary 348,961 - 348,961 316,338 32,623 Administrative services 990,076 - 990,076 967,785 22,291 Information technology 397,768 - 397,768 403,269 (5,501) Assessing/tax 403,043 - 403,043 406,826 (3,783) Physical plant 434,004 - 434,004 498,894 (64,890) Planning/design review 563,713 - 563,713 473,870 89,843 10,078,671 - 10,078,671 10,151,926 (73,255) Public safety Fire department 3,698,663 - 3,698,663 4,109,134 (410,471) Ambulance 522,650 - 522,650 212,960 309,690 Police department 5,760,136 - 5,760,136 5,178,954 581,182 9,981,449 - 9,981,449 9,501,048 480,401 Public works Highway department 3,346,939 - 3,346,939 3,455,999 (109,060) 3,346,939 - 3,346,939 3,455,999 (109,060) Social services County court 147,677 - 147,677 160,345 (12,668) Winooski Valley Park 67,916 - 67,916 67,916 - C.C.T.A 538,462 - 538,462 538,462 - Regional planning 37,195 - 37,195 37,195 - 791,250 - 791,250 803,918 (12,668) SCHEDULE B (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF DEPARTMENTAL OPERATIONS - GENERAL FUND FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 84 Variance Original Budget Final Positive Budget Adjustments Budget Actual (Negative) Recreation and culture Recreation administration 359,518 - 359,518 343,662 15,856 Programs 50,000 - 50,000 37,847 12,153 Red Rocks Park 14,925 - 14,925 11,301 3,624 Facilities 139,150 - 139,150 25,288 113,862 Contracted programs 134,811 - 134,811 127,043 7,768 Community library 866,630 - 866,630 838,373 28,257 Park maintenance 399,642 - 399,642 448,609 (48,967) Capital items - - - 99,991 (99,991) 1,964,676 - 1,964,676 1,932,114 32,562 Debt service Principal Kennedy drive recon.22,494 - 22,494 22,508 (14) Principal Lime Kiln bridge 22,494 - 22,494 22,508 (14) Prinicpal F/D building improvements 29,992 - 29,992 30,005 (13) Principal police headquarters 360,000 - 360,000 360,000 - Principal communication equipment 190,000 - 190,000 190,000 - Principal pension liabilitiy 586,224 - 586,224 586,224 - Interest Kennedy drive recon.2,924 - 2,924 299 2,625 Interest Lime Kiln bridge 2,824 - 2,824 299 2,525 Interest F/D building improvements 3,787 - 3,787 398 3,389 Interest police headquarters 145,602 - 145,602 145,602 - Interest communication equipment 18,335 - 18,335 18,285 50 Interest sewer fund note 12,005 - 12,005 12,005 - Interest and prepayment penalty pension liability 93,613 - 93,613 92,330 1,283 1,490,294 - 1,490,294 1,480,463 9,831 Education 44,497,252 - 44,497,252 44,497,252 - Transfers 808,200 - 808,200 2,673,685 (1,865,485) TOTAL DEPARTMENTAL OPERATIONS 72,958,731$ -$ 72,958,731$ 74,496,405$ (1,537,674)$ SCHEDULE C CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR GOVERNMENTAL FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 85 Special Capital Total Nonmajor Revenue Projects Permanent Governmental Funds Funds Funds Funds ASSETS Cash and cash equivalents 100$ -$ -$ 100$ Accounts receivable (net of allowance for uncollectibles)501,544 - - 501,544 Prepaid items 40 - - 40 Due from other funds 10,730,315 2,474,631 63,697 13,268,643 TOTAL ASSETS 11,231,999$ 2,474,631$ 63,697$ 13,770,327$ LIABILITIES Accounts payable 434,501$ -$ -$ 434,501$ Due to agencies - 8 5,482 5,490 Due to other funds 172,323 - 63,193 235,516 TOTAL LIABILITIES 606,824 8 68,675 675,507 FUND BALANCES Nonspendable 40 - - 40 Restricted 8,913,479 336,546 27,111 9,277,136 Committed 1,647,562 2,138,077 24,619 3,810,258 Assigned 228,230 - 6,485 234,715 Unassigned (deficit)(164,136) - (63,193) (227,329) TOTAL FUND BALANCES 10,625,175 2,474,623 (4,978) 13,094,820 TOTAL LIABILITIES AND FUND BALANCES $ 11,231,999 $ 2,474,631 $ 63,697 $ 13,770,327 SCHEDULE D CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 86 Special Capital Total Nonmajor Revenue Projects Permanent Governmental Funds Funds Funds Funds REVENUES Intergovernmental revenue 3,474,821$ 497,855$ 59,000$ 4,031,676$ Charges for services 1,063,901 522,281 5,992 1,592,174 Other income 209,052 66,997 26,781 302,830 TOTAL REVENUES 4,747,774 1,087,133 91,773 5,926,680 EXPENDITURES Program expenses 2,750,768 143,365 171,720 3,065,853 Capital outlay 220,220 233,877 - 454,097 TOTAL EXPENDITURES 2,970,988 377,242 171,720 3,519,950 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 1,776,786 709,891 (79,947) 2,406,730 OTHER FINANCING SOURCES (USES) Transfers in 210,269 54,002 889 265,160 Transfers (out)(216,850) - - (216,850) TOTAL OTHER FINANCING SOURCES (USES)(6,581) 54,002 889 48,310 NET CHANGE IN FUND BALANCES 1,770,205 763,893 (79,058) 2,455,040 FUND BALANCES - JULY 1, RESTATED 8,854,970 1,710,730 74,080 10,639,780 FUND BALANCES - JUNE 30 10,625,175$ 2,474,623$ (4,978)$ 13,094,820$ Special Revenue Funds 87 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 E CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 88 213 207 210 211 212 Cider Mill Police MPG 10 Impact Forfeiture Natural EMTP Fueling Fees Fund Resources Training Station ASSETS Cash and cash equivalents -$ -$ -$ -$ -$ Accounts receivable (net of allowance for uncollectibles)- - - - - Prepaid items - - - - - Due from other funds 12,000 59,019 39,708 38,640 98,400 TOTAL ASSETS 12,000$ 59,019$ 39,708$ 38,640$ 98,400$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ Due to other funds - - - - - TOTAL LIABILITIES - - - - - FUND BALANCES (DEFICITS) Nonspendable - - - - - Restricted 12,000 59,019 - 38,640 98,400 Committed - - - - - Assigned - - 39,708 - - Unassigned - - - - - TOTAL FUND BALANCES (DEFICITS)12,000 59,019 39,708 38,640 98,400 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)12,000$ 59,019$ 39,708$ 38,640$ 98,400$ SCHEDULE E (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 89 214 216 219 220 221 222 Clerk Community Recreation Highway Police Housing Computer-Justice Impact Impact Impact Trust ization Grant - 2 Fees Fees Fees ASSETS Cash and cash equivalents -$ -$ 100$ -$ -$ -$ Accounts receivable (net of allowance for uncollectibles)434,501 - 7,092 - - - Prepaid items - - 40 - - - Due from other funds 100,809 128,578 76,258 1,973,771 1,415,909 3,974 TOTAL ASSETS 535,310$ 128,578$ 83,490$ 1,973,771$ 1,415,909$ 3,974$ LIABILITIES Accounts payable 434,501$ -$ -$ -$ -$ -$ Due to other funds - - - - - - TOTAL LIABILITIES 434,501 - - - - - FUND BALANCES (DEFICITS) Nonspendable - - 40 - - - Restricted 100,809 - - 1,973,771 - - Committed - 128,578 - - 1,415,909 3,974 Assigned - - 83,450 - - - Unassigned - - - - - - TOTAL FUND BALANCES (DEFICITS)100,809 128,578 83,490 1,973,771 1,415,909 3,974 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)535,310$ 128,578$ 83,490$ 1,973,771$ 1,415,909$ 3,974$ SCHEDULE E (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 90 226 227 228 230 233 234 Dorset Fed Road Community Records Reparative Street H2O EECBG #1 Opening Garden Preservation Board Milot Energy Impact Fees ASSETS Cash and cash equivalents -$ -$ -$ -$ -$ -$ Accounts receivable (net of allowance for uncollectibles)- - - 28,372 - - Prepaid items - - - - - - Due from other funds 11,707 3 1,633 - 7,288 16,000 TOTAL ASSETS 11,707$ 3$ 1,633$ 28,372$ 7,288$ 16,000$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ -$ Due to other funds - - - 8,187 - - TOTAL LIABILITIES - - - 8,187 - - FUND BALANCES (DEFICITS) Nonspendable - - - - - - Restricted - - - 20,185 - - Committed 11,707 - 1,633 - - 16,000 Assigned - 3 - - 7,288 - Unassigned - - - - - - TOTAL FUND BALANCES (DEFICITS)11,707 3 1,633 20,185 7,288 16,000 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)11,707$ 3$ 1,633$ 28,372$ 7,288$ 16,000$ SCHEDULE E (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 91 235 243 244 247 248 251 253 FEMA South MPG 2018 Fields Use Health Medic Village Public Art Conference City Center Impact Insurance Grant Rec. Impact City Center Room Rental Design Fees Reserve ASSETS Cash and cash equivalents -$ -$ -$ -$ -$ -$ -$ Accounts receivable (net of allowance for uncollectibles)- - - - - - - Prepaid items - - - - - - - Due from other funds - 453,753 9,500 - 2,300 70,942 355,000 TOTAL ASSETS -$ 453,753$ 9,500$ -$ 2,300$ 70,942$ 355,000$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ -$ -$ Due to other funds - - - - - - - TOTAL LIABILITIES - - - - - - - FUND BALANCES (DEFICITS) Nonspendable - - - - - - - Restricted - 453,753 - - - - 355,000 Committed - - - - - - - Assigned - - 9,500 - 2,300 70,942 - Unassigned - - - - - - - TOTAL FUND BALANCES (DEFICITS)- 453,753 9,500 - 2,300 70,942 355,000 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)-$ 453,753$ 9,500$ -$ 2,300$ 70,942$ 355,000$ SCHEDULE E (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 92 256 258 265 269 276 282 285 Human MPG/Traffic Vermont American Indoor Trafficking Aviation Tree Overlay Law Rescue Rec Grant Fund Maintenance Grant Enforcement Plan Center ASSETS Cash and cash equivalents -$ -$ -$ -$ -$ -$ -$ Accounts receivable (net of allowance for uncollectibles)31,579 - - - - - - Prepaid items - - - - - - - Due from other funds 12,422 680,197 5,300 4,207 29,692 4,683,857 - TOTAL ASSETS 44,001$ 680,197$ 5,300$ 4,207$ 29,692$ 4,683,857$ -$ LIABILITIES Accounts payable -$ -$ -$ -$ -$ -$ -$ Due to other funds - - - - - - 164,136 TOTAL LIABILITIES - - - - - - 164,136 FUND BALANCES (DEFICITS) Nonspendable - - - - - - - Restricted 44,001 680,197 5,300 4,207 29,692 4,683,857 - Committed - - - - - - - Assigned - - - - - - - Unassigned - - - - - - (164,136) TOTAL FUND BALANCES (DEFICITS)44,001 680,197 5,300 4,207 29,692 4,683,857 (164,136) TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)44,001$ 680,197$ 5,300$ 4,207$ 29,692$ 4,683,857$ -$ SCHEDULE E (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR SPECIAL REVENUE FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 93 288 298 611 620 A/P Police A/Guard Sick Senior Bequeath Enviromental Bank Citizens Fund Total ASSETS Cash and cash equivalents -$ -$ -$ -$ 100$ Accounts receivable (net of allowance for uncollectibles)- - - - 501,544 Prepaid items - - - - 40 Due from other funds - 354,648 15,039 69,761 10,730,315 TOTAL ASSETS -$ 354,648$ 15,039$ 69,761$ 11,231,999$ LIABILITIES Accounts payable -$ -$ -$ -$ 434,501$ Due to other funds - - - - 172,323 TOTAL LIABILITIES - - - - 606,824 FUND BALANCES (DEFICITS) Nonspendable - - - - 40 Restricted - 354,648 - - 8,913,479 Committed - - - 69,761 1,647,562 Assigned - - 15,039 - 228,230 Unassigned - - - - (164,136) TOTAL FUND BALANCES (DEFICITS)- 354,648 15,039 69,761 10,625,175 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)-$ 354,648$ 15,039$ 69,761$ 11,231,999$ SCHEDULE F CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2023 94 213 207 210 211 212 Cider Mill Police MPG 10 Impact Forfeiture Natural EMTP Fueling Fees Fund Resources Training Station REVENUES Intergovernmental revenue -$ 8,833$ -$ -$ -$ Charges for services 6,000 - - - - Other income - - - - - TOTAL REVENUES 6,000 8,833 - - - EXPENDITURES Program expenses - 23,021 - 13,422 - Capital outlay - - - - - TOTAL EXPENDITURES - 23,021 - 13,422 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 6,000 (14,188) - (13,422) - OTHER FINANCING SOURCES (USES) Transfers in - - - 10,000 8,200 Transfers (out)- - - - - TOTAL OTHER FINANCING SOURCES (USES)- - - 10,000 8,200 NET CHANGE IN FUND BALANCES (DEFICITS)6,000 (14,188) - (3,422) 8,200 FUND BALANCES (DEFICITS) - JULY 1 6,000 73,207 39,708 42,062 90,200 FUND BALANCES (DEFICITS) - JUNE 30 12,000$ 59,019$ 39,708$ 38,640$ 98,400$ SCHEDULE F (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2023 95 214 216 219 220 221 222 Clerk Community Recreation Highway Police Housing Computer-Justice Impact Impact Impact Trust ization Grant - 2 Fees Fees Fees REVENUES Intergovernmental revenue 1,000,000$ 59,733$ 139,679$ -$ -$ -$ Charges for services - - 890 555,164 185,768 185,312 Other income 376 - 22,288 - - - TOTAL REVENUES 1,000,376 59,733 162,857 555,164 185,768 185,312 EXPENDITURES Program expenses 1,050,000 112,621 157,618 - - - Capital outlay - - - 184,973 - - TOTAL EXPENDITURES 1,050,000 112,621 157,618 184,973 - - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (49,624) (52,888) 5,239 370,191 185,768 185,312 OTHER FINANCING SOURCES (USES) Transfers in 50,000 - - - - - Transfers (out)- (15,000) - - (20,512) (181,338) TOTAL OTHER FINANCING SOURCES (USES)50,000 (15,000) - - (20,512) (181,338) NET CHANGE IN FUND BALANCES (DEFICITS)376 (67,888) 5,239 370,191 165,256 3,974 FUND BALANCES (DEFICITS) - JULY 1 100,433 196,466 78,251 1,603,580 1,250,653 - FUND BALANCES (DEFICITS) - JUNE 30 100,809$ 128,578$ 83,490$ 1,973,771$ 1,415,909$ 3,974$ SCHEDULE F (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2023 96 226 227 228 230 233 234 Dorset Fed Road Community Records Reparative Street H2O EECBG #1 Opening Garden Preservation Board Milot Energy Impact Fees REVENUES Intergovernmental revenue -$ -$ -$ -$ -$ -$ Charges for services - - - - - - Other income 2,265 3 - - - - TOTAL REVENUES 2,265 3 - - - - EXPENDITURES Program expenses 13 41,429 - - 178 - Capital outlay - - - - - - TOTAL EXPENDITURES 13 41,429 - - 178 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,252 (41,426) - - (178) - OTHER FINANCING SOURCES (USES) Transfers in - - - - - - Transfers (out)- - - - - - TOTAL OTHER FINANCING SOURCES (USES)- - - - - - NET CHANGE IN FUND BALANCES (DEFICITS)2,252 (41,426) - - (178) - FUND BALANCES (DEFICITS) - JULY 1 9,455 41,429 1,633 20,185 7,466 16,000 FUND BALANCES (DEFICITS) - JUNE 30 11,707$ 3$ 1,633$ 20,185$ 7,288$ 16,000$ SCHEDULE F (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2023 97 235 243 244 247 248 251 253 FEMA South MPG 2018 Fields Use Health Medic Village Public Art Conference City Center Impact Insurance Grant Rec. Impact City Center Room Rental Design Fees Reserve REVENUES Intergovernmental revenue -$ -$ -$ -$ 2,300 -$ -$ Charges for services - 61,608 - - - 69,159 - Other income - - - - - - - TOTAL REVENUES - 61,608 - - 2,300 69,159 - EXPENDITURES Program expenses 58,502 - 500 4,250 - 38,552 - Capital outlay - - - - - 35,247 - TOTAL EXPENDITURES 58,502 - 500 4,250 - 73,799 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (58,502) 61,608 (500) (4,250) 2,300 (4,640) - OTHER FINANCING SOURCES (USES) Transfers in - - 5,000 - - - - Transfers (out)- - - - - - - TOTAL OTHER FINANCING SOURCES (USES)- - 5,000 - - - - NET CHANGE IN FUND BALANCES (DEFICITS)(58,502) 61,608 4,500 (4,250) 2,300 (4,640) - FUND BALANCES (DEFICITS) - JULY 1 58,502 392,145 5,000 4,250 - 75,582 355,000 FUND BALANCES (DEFICITS) - JUNE 30 -$ 453,753$ 9,500$ -$ 2,300$ 70,942$ 355,000$ SCHEDULE F (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2023 98 256 258 265 269 276 282 285 Human MPO/Traffic Vermont American Indoor Trafficking Aviation Tree Overlay Law Rescue Rec Grant Fund Maintenance Grant Enforcement Plan Center REVENUES Intergovernmental revenue 89,587$ 249,941$ -$ -$ 29,692$ 1,895,056$ -$ Charges for services - - - - - - - Other income - - - - - 154,969 - TOTAL REVENUES 89,587 249,941 - - 29,692 2,050,025 - EXPENDITURES Program expenses 100,617 - - - - 1,024,801 - Capital outlay - - - - - - - TOTAL EXPENDITURES 100,617 - - - - 1,024,801 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (11,030) 249,941 - - 29,692 1,025,224 - OTHER FINANCING SOURCES (USES) Transfers in - - - - - - - Transfers (out)- - - - - - - TOTAL OTHER FINANCING SOURCES (USES)- - - - - - - NET CHANGE IN FUND BALANCES (DEFICITS)(11,030) 249,941 - - 29,692 1,025,224 - FUND BALANCES (DEFICITS) - JULY 1 55,031 430,256 5,300 4,207 - 3,658,633 (164,136) FUND BALANCES (DEFICITS) - JUNE 30 44,001$ 680,197$ 5,300$ 4,207$ 29,692$ 4,683,857$ (164,136)$ SCHEDULE F (CONTINUED) CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULE OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR SPECIAL REVENUE FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 99 288 298 611 620 A/P Police A/Guard Sick Senior Bequeath Enviromental Bank Citizens Fund Total REVENUES Intergovernmental revenue -$ -$ -$ -$ 3,474,821$ Charges for services - - - - 1,063,901 Other income - 27,651 1,500 - 209,052 TOTAL REVENUES - 27,651 1,500 - 4,747,774 EXPENDITURES Program expenses - 119,557 1,420 4,267 2,750,768 Capital outlay - - - - 220,220 TOTAL EXPENDITURES - 119,557 1,420 4,267 2,970,988 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (91,906) 80 (4,267) 1,776,786 OTHER FINANCING SOURCES (USES) Transfers in - 137,069 - - 210,269 Transfers (out)- - - - (216,850) TOTAL OTHER FINANCING SOURCES (USES)- 137,069 - - (6,581) NET CHANGE IN FUND BALANCES (DEFICITS)- 45,163 80 (4,267) 1,770,205 FUND BALANCES (DEFICITS) - JULY 1 - 309,485 14,959 74,028 8,854,970 FUND BALANCES (DEFICITS) - JUNE 30 -$ 354,648$ 15,039$ 69,761$ 10,625,175$ Capital Projects Funds 100 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 G CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR CAPITAL PROJECTS FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 101 301 242 604 307 309 Energy Penny Ambulance Open Space Reappraisal Project Rev.for Equipment Special Fund Fund Paths Replacement Assessment Total ASSETS Due from other funds 219,923$ 209,016$ 336,554$ 5,000$ 1,704,138$ 2,474,631$ TOTAL ASSETS 219,923$ 209,016$ 336,554$ 5,000$ 1,704,138$ 2,474,631$ LIABILITIES Due to agencies -$ -$ 8$ -$ -$ 8$ Due to other funds - - - - - - TOTAL LIABILITIES - - 8 - - 8 FUND BALANCES (DEFICITS) Nonspendable - - - - - - Restricted - - 336,546 - - 336,546 Committed 219,923 209,016 - 5,000 1,704,138 2,138,077 Assigned - - - - - - Unassigned - - - - - - TOTAL FUND BALANCES (DEFICITS)219,923 209,016 336,546 5,000 1,704,138 2,474,623 TOTAL LIABILITIES AND FUND BALANCES (DEFICITS)219,923$ 209,016$ 336,554$ 5,000$ 1,704,138$ 2,474,631$ SCHEDULE H 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, 2023 See accompanying independent auditor’s report and notes to financial statements. 102 301 242 604 307 309 Energy Penny Ambulance Open Space Reappraisal Project Rev.for Equipment Special Fund Fund Paths Replacement Assessment Total REVENUES Intergovenmental revenue -$ -$ 497,855$ -$ -$ 497,855$ Charges for services - 116,701 - - 405,580 522,281 Other income 66,997 - - - - 66,997 TOTAL REVENUES 66,997 116,701 497,855 - 405,580 1,087,133 EXPENDITURES Program expenses 2,750 15,205 - - 125,410 143,365 Capital outlay - 8,277 181,918 - 43,682 233,877 TOTAL EXPENDITURES 2,750 23,482 181,918 - 169,092 377,242 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 64,247 93,219 315,937 - 236,488 709,891 OTHER FINANCING SOURCES (USES) Transfers in - 54,002 - - - 54,002 Transfers (out)- - - - - - TOTAL OTHER FINANCING SOURCES (USES)- 54,002 - - - 54,002 NET CHANGE IN FUND BALANCES 64,247 147,221 315,937 - 236,488 763,893 FUND BALANCES - JULY 1, RESTATED 155,676 61,795 20,609 5,000 1,467,650 1,710,730 FUND BALANCES - JUNE 30 219,923$ 209,016$ 336,546$ 5,000$ 1,704,138$ 2,474,623$ Permanent Funds 103 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. These funds have been established for the provision and/or maintenance of the cemeteries and various community organizations. SCHEDULE I CITY OF SOUTH BURLINGTON, VERMONT COMBINING BALANCE SHEET - NONMAJOR PERMANENT FUNDS JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 104 Community Recreation Fire Community Cemetery Library Veterans Path Department Dog Park Music Trust Trust Memorial Donations Donations Donations Festival Total ASSETS Due from other funds 15,743$ 5,368$ 6,485$ 11,482$ 773$ 23,846$ -$ 63,697$ TOTAL ASSETS 15,743$ 5,368$ 6,485$ 11,482$ 773$ 23,846$ -$ 63,697$ LIABILITIES Due to agencies -$ -$ -$ 5,482$ -$ -$ -$ 5,482$ Due to other funds - - - - - - 63,193 63,193 TOTAL LIABILITIES - - - 5,482 - - 63,193 68,675 FUND BALANCES (DEFICITS) Nonspendable - - - - - - - - Restricted 15,743 5,368 - 6,000 - - - 27,111 Committed - - - - 773 23,846 - 24,619 Assigned - - 6,485 - - - - 6,485 Unassigned - - - - - - (63,193) (63,193) TOTAL FUND BALANCES (DEFICITS)15,743 5,368 6,485 6,000 773 23,846 (63,193) (4,978) TOTAL LIABILITIES AND FUND BALANCE (DEFICITS)15,743$ 5,368$ 6,485$ 11,482$ 773$ 23,846$ -$ 63,697$ SCHEDULE J CITY OF SOUTH BURLINGTON, VERMONT COMBINING SCHEDULES OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES NONMAJOR PERMANENT FUNDS FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 105 Community Recreation Fire Community Cemetery Library Veterans Path Department Dog Park Music Trust Trust Memorial Donations Donations Donations Festival Total REVENUES Intergovernmental -$ -$ -$ -$ -$ -$ 59,000$ 59,000$ Charges for services - - - - - 5,992 - 5,992 Other income 1,700 16,781 100 - 3,391 82 4,727 26,781 TOTAL REVENUES 1,700 16,781 100 - 3,391 6,074 63,727 91,773 EXPENDITURES Other 1,245 35,987 68 - 7,500 - 126,920 171,720 TOTAL EXPENDITURES 1,245 35,987 68 - 7,500 - 126,920 171,720 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 455 (19,206) 32 - (4,109) 6,074 (63,193) (79,947) OTHER FINANCING SOURCES (USES) Transfers in 889 - - - - - - 889 Transfers (out)- - - - - - - - TOTAL OTHER FINANCING SOURCES (USES)889 - - - - - - 889 NET CHANGE IN FUND BALANCES (DEFICITS)1,344 (19,206) 32 - (4,109) 6,074 (63,193) (79,058) FUND BALANCES (DEFICITS) - JULY 1, RESTATED 14,399 24,574 6,453 6,000 4,882 17,772 - 74,080 FUND BALANCES (DEFICITS) - JUNE 30 15,743$ 5,368$ 6,485$ 6,000$ 773$ 23,846$ (63,193)$ (4,978)$ General Capital Assets 106 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 K CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF GENERAL CAPITAL ASSETS BY FUNCTION JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 107 Furniture, Land and Buildings,Fixtures, Non-depreciable Building Improvements Equipment Assets and Land Improvements and Vehicles Infrastructure Total General Government 329,511$ 2,571,076$ 71,230$ 9,371,056$ 12,342,873$ Ambulance - - 59,628 - 59,628 Fire 1,118,500 6,469,086 6,755,525 - 14,343,111 Police - 8,828,410 2,258,206 - 11,086,616 Public Works 956,789 791,049 4,760,420 51,374,026 57,882,284 Library 675,494 14,187,478 6,756 - 14,869,728 Recreation 2,722,900 302,396 194,927 2,087,056 5,307,279 Health - 681,648 - 108,305 789,953 City Wide 4,250,719 7,892,010 1,243,364 - 13,386,093 Storm Water Utilities 1,605,537 154,994 1,220,632 9,671,445 12,652,608 Water Pollution Control 653,213 38,976,351 1,311,657 4,482,248 45,423,469 Water Department 36,065 - 7,484,657 - 7,520,722 Total General Capital Assets 12,348,728 80,854,498 25,367,002 77,094,136 195,664,364 Less: Accumulated Depreciation - (33,775,414) (16,396,004) (45,105,716) (95,277,134) Net General Capital Assets 12,348,728$ 47,079,084$ 8,970,998$ 31,988,420$ 100,387,230$ SCHEDULE L CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF CHANGES IN GENERAL CAPITAL ASSETS BY FUNCTION FOR THE YEAR ENDED JUNE 30, 2023 See accompanying independent auditor’s report and notes to financial statements. 108 General Capital General Assets Capital 7/1/22 Transfers/Assets (Restated)Additions Disposals 6/30/23 General Government 11,545,518$ 797,355$ -$ 12,342,873$ Ambulance 59,628 - - 59,628 Fire 13,973,079 370,032 - 14,343,111 Police 10,974,915 219,207 (107,506) 11,086,616 Public Works 56,370,944 1,603,414 (92,074) 57,882,284 Library 14,869,728 - - 14,869,728 Recreation 5,185,316 121,963 - 5,307,279 Health 789,953 - - 789,953 City Wide 12,087,752 1,298,341 - 13,386,093 Storm Water Utilities 11,122,933 1,529,675 - 12,652,608 Water Pollution Control 45,062,960 364,509 (4,000) 45,423,469 Water Department 7,330,648 327,806 (137,732) 7,520,722 Total General Capital Assets 189,373,374 6,632,302 (341,312) 195,664,364 Less: Accumulated Depreciation (90,677,643) (4,902,907) 303,416 (95,277,134) Net General Capital Assets 98,695,731$ 1,729,395$ (37,896)$ 100,387,230$ Federal Compliance 109 Federal compliance includes financial information and reports that are required in accordance with Government Auditing Standards and/or the Uniform Guidance in accordance with 2 CFR § 515. Such financial information and reports include: • Schedule of Expenditures of Federal Awards • Notes to Schedule of Expenditures of Federal Awards • Independent Auditor’s 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 • Independent Auditor’s Report on Compliance or Each Major Program and on Internal Control Over Compliance Required by the Uniform Guidance • Schedule of Findings and Questioned Costs CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED JUNE 30, 2023 110 Federal Grantor Federal Pass Through Expenditures Pass Through Grantor AL Grantor Federal to Program/Cluster Title Number Number Expenditures Subrecipients U.S. Department of Agriculture Passed Through State of Vermont Forests, Parks and Recreation: Cooperative Forestry Assistance 10.664 06130-UCF-GUF-22-05 11,250$ -$ Total U.S. Department of Agriculture 11,250 - U.S. Department of Housing and Urban Development Passed Through State of Vermont: Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii 14.228 07110-IG-2021- SBurlingtonC-22 1,000,000 - Total U.S. Department of Housing and Urban Development 1,000,000 - U.S. Department of Justice Passed Through State of Vermont: Crime Victim Assistance 16.575 02160VOCA19-40155-6 21,569 - Crime Victim Assistance 16.575 02160VOCA22-40155-6 25,553 - 47,122 - Passed Through State of Vermont Department of Public Safety: Edward Byrne Memorial Justice Assistance Grant Program 16.738 02140-12121C-100 18,187 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 02140-11918C-100 59,747 - 77,934 - Equitable Sharing Program 16.922 N/A 48,456 - Total U.S. Department of Justice 173,512 - U.S. Department of Transportation Passed Through State of Vermont Agency of Transportation: Highway Planning and Construction 20.205 CA0714 641,551 - Highway Planning and Construction 20.205 CA0607 17,275 - Highway Planning and Construction 20.205 CA0517 90,880 - Highway Planning and Construction 20.205 CA0589 223,339 - Highway Planning and Construction 20.205 CA0576 262,847 - 1,235,892 - Total U.S. Department of Transportation 1,235,892 - CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS (CONTINUED) FOR THE YEAR ENDED JUNE 30, 2023 111 Federal Grantor Federal Pass Through Expenditures Pass Through Grantor AL Grantor Federal to Program/Cluster Title Number Number Expenditures Subrecipients U.S. Treasury Department Passed Through State of Vermont Department of Public Safety: Coronavirus State and Local Fiscal Recovery Funds 21.027 03420-08574 1,024,801 - Total U.S. Treasury Department 1,024,801 - U.S. Enviromental Protection Agency: Passed Through State of Vermont Department of Public Works: Clean Water State Revolving Fund Cluster: Capitalization Grants for Clean Water State Revolving Funds 66.458 N/A 253,475 - Subtotal Clean Water State Revolving Fund Cluster 253,475 - Total U.S. Enviromental Protection Agency 253,475 - TOTAL FEDERAL ASSISTANCE 3,698,930$ -$ CITY OF SOUTH BURLINGTON, VERMONT NOTES TO SCHEDULE OF EXPEDITURES OF FEDERAL AWARDS JUNE 30, 2023 112 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the City of South Burlington, Vermont under programs of the federal government for the year ended June 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City of South Burlington, Vermont it is not intended to and does not present the financial position, changes in net position or cash flows of the City of South Burlington, Vermont. 2. Summary of Significant Accounting Policies a. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance and/or OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, wherein certain types of expenditures are not allowable or are limited as to reimbursement. b. City of South Burlington, Vermont has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. 113 INDEPENDENT AUDITOR’S 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, 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, 2023 and the related notes to the financial statements, which collectively comprise the City of South Burlington, Vermont’s basic financial statements and have issued our report thereon dated January 24, 2024. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City of South Burlington, Vermont’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, Vermont’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City of South Burlington, Vermont’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, misstatements on a timely basis. A material weakness is a deficiency or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the 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 114 Our consideration of internal control was for the limited purpose described 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 exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City of South Burlington, Vermont’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 matters that are required to be reported under Government Auditing Standards. We noted certain other matters that we reported to management of the City of South Burlington, Vermont in a separate letter dated January 24, 2024. 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 compliance. Accordingly, this communication is not suitable for any other purpose. Buxton, Maine Vermont Registration No. 092.0000697 January 24, 2024 115 INDEPENDENT AUDITOR’S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY UNIFORM GUIDANCE City Council City of South Burlington South Burlington, Vermont Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of South Burlington, Vermont’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City of South Burlington, Vermont’s major federal programs for the year ended June 30, 2023. the City of South Burlington, Vermont’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. 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, 2023. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibility section of our report. We are required to be independent of the City of South Burlington, Vermont and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal 3 Old Orchard Road, Buxton, Maine 04093 Tel: (800) 300-7708 (207) 929-4606 Fax: (207) 929-4609 www.rhrsmith.com 116 program. Our audit does not provide a legal determination of the City of South Burlington, Vermont’s compliance with the compliance requirements referred to above. Management’s Responsibility Management is responsible for compliance with the requirements referred to above and for the design, implementation and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the City of South Burlington, Vermont’s federal programs. Auditor’s Responsibility Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error and express an opinion on the City of South Burlington, Vermont’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City of South Burlington, Vermont’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards and the Uniform Guidance, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material noncompliance, whether due to fraud or error and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City of South Burlington, Vermont’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • Obtain an understanding of the City of South Burlington, Vermont’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City of South Burlington, 117 Vermont’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency or 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 detected 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 Auditor’s Responsibility section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that were not identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Buxton, Maine Vermont Registration No. 092.0000697 January 24, 2024 CITY OF SOUTH BURLINGTON, VERMONT SCHEDULE OF FINDINGS AND QUESTIONED COSTS - INTERNAL CONTROL FOR THE YEAR ENDED JUNE 30, 2023 118 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 deficiency(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 OMB Compliance Supplement? yes X no Identification of major programs: AL Numbers Name of Federal Program or Cluster 14.228 Community Development Block Grants/State’s Program and Non-entitlement grants in Hawaii 20.205 Highway Planning and Construction Cluster 21.027 Coronavirus State and Local Fiscal Recovery Funds Dollar threshold used to distinguish between type A and B: $750,000 Auditee qualified as low-risk auditee? X yes no Section II - Financial Statement Findings None Section III - Federal Awards Findings and Questioned Costs None Attachments • • • • Recommendation Loan Application Form: Submission #214 Contact Borrower City of South Burlington Contact Martha Machar Title Finance Director address 180 Market Street South Burlington, Vermont. 05403 Phone # 802-383-1789 Fax # 802-846-4101 Email mmachar@southburlingtonvt.gov Taxpayer ID/EIN # 03-6002712 Local Bond Counsel Robert E. Fletcher, Esq. Local Bond Counsel Firm Stitzel, Page & Fletcher, P.C. Local Bond Counsel Email rfletcher@firmspf.com Local Bond Counsel Preliminary Opinion 23-12-18 REF Prelim Bond Opn to M. Gaughan at VBB for South Burlington.pdf Sources & Uses Total Project(s) Cost $39,914,298 Type of Application Governmental Activities Have all required permits and/or regulatory approvals been received? No If no, when will the permits be received? Spring 2024 Project 1 TIF District - Garden Street including Williston Road Intersections, City Center Park II, Williston Rd Streetscape & East West Alternative Transportation Crossing (Walk Bike Bridge) Project 2 {Empty} Project 3 {Empty} Uses of Funds VBB Loan Request $18,606,530 Sources of Funds (Include Dollar Amounts) Will Refinance a Ban? No Expenditure of Loan Proceeds Yes Federal Funds $10,568,834 State Funds {Empty} Local Funds $2,268,380 Other (Describe) $8,224,019 unsecured, may be State or Federal Total Sources of Funds (should equal total project cost from above) $39,914,298 BANs {Empty} Ban Details Financial Desired Principal/Interest Payments Loan Amount: 18606530 Total Loan Term: 14 Interest-only Payments: 0 Audit Uploads- 1 year minimum; 3 years preferred FY20 Final Revised Audit.pdf 2021 Revised Final Financial Statement 9-30-2022.pdf S. Burlington City FS22 Final.pdf Other Financial Statement Upload Final Report South Burlington TIF District 05.24.2023.pdf Has anything occurred since the date of your last financial statement that will negatively impact revenues and expenditures? No. Impact Electric Generation {Empty} Renewable Energy {Empty} Transmission {Empty} Electric Generation Energy Efficiency {Empty} New Building Construction {Empty} Existing Building Construction {Empty} New Building Construction - School Facilities {Empty} Existing Building Construction - School {Empty} Roof {Empty} Roads Indicator #1: 1060 Streetscape Indicator #1: 4660 Bridges/Culverts Indicator #1: 330 Parking Indicator #1: 4 Transportation Green Infrastructure {Empty} Water Impact {Empty} Wastewater Water {Empty} Stormwater {Empty} Parks {Empty} Recreation Center {Empty} Sports Facilities {Empty} Trails Indicator #1: 9263 Recreation Equipment Type {Empty} Equipment Material Resources {Empty} Building Site {Empty} Land Acquisition Direct Population Served South Burlington - Burlington - Williston Urban Corridor/City Center Population https://www.vermonttreasurer.gov/sites/treasurer/files/VMERS/PDF/2023/VMERS_2023_GASB_68_Report.pdf Does the borrower have any additional retirement or other post employment liabilities? Describe any net liability. How do you plan to reduce that liability? South Burlington is 97.71% funded based on Present Value in the South Burlington Retirement Plan and that plan has been closed to new employees since July 1, 2019. This Plan is also 87.62% funded based on Entry Age Normal and Smoothed assets - GASB requirement. Please upload State of Vermont Auditor's control checklist submitted to governing body (link to https://auditor.vermont.gov/local) State Audit Checklist FY21.pdf Economic List your five largest Municipal taxpayers or ratepayers Payer Name: Larkin Realty Type of Entity: Housing/Hospitality/Commercial Amount: 546022.58 % of Total: 2.81 Payer Name: Green Mountain Power Type of Entity: Utility Amount: 248698.97 % of Total: 1.28 Payer Name: Burlington U-Mall Type of Entity: Shopping Center Amount: 182890.93 % of Total: 0.94 Payer Name: Vermont Electric Power Co Type of Entity: Power Company Amount: 171174.14 % of Total: 0.88 Payer Name: AAM Burlington Hotel LLC Type of Entity: Hospitality Amount: 152188.54 % of Total: 0.78 List your five largest employers Name of Employer: Vermont Air Guard Type of Business: Defense Number of Employees: 1011 Name of Employer: GE Healthcare Type of Business: Healthcare Number of Employees: 700 Name of Employer: School District Type of Business: Public School Number of Employees: 532 Name of Employer: Beta Technologies Type of Business: Aviation Number of Employees: 450 Name of Employer: UVM Type of Business: Higher Ed Number of Employees: 400 Please provide any notes on past or projected financial performance that would be useful South Burlington has a Grand List with a projected growth rate of 2% for FY 2025. The City has ample properties that are primed for redevelopment within the TIF District and other areas that are zoned for mixed-use and commercial/industrial redevelopment and development in South Burlington. The City has a diversified tax base and while tax revenues from the hospitality and retail industry have grown considerably allowing reserves to build back up, the City has continued to treat this conservatively, recognizing it is a more volatile income source. The City has ample properties that are primed for redevelopment within the TIF District and other areas that are zoned for mixed-use and commercial/industrial redevelopment and development in South Burlington. The TIF District has had six buildings in construction currently and additional capacity for growth (growth capacity is projected at 61 additional units each year over 10 years). The TIF District 2023 April 1 Grand List was 15% higher then it had been the prior year. In 2023, the City TIF District underwent the 10-Year audit by the State Auditor's Office, which made no findings and noted it was the cleanest TIF Audit to date. Financial - Governmental Activities Percent Delinquent Taxes at Year End Last Year: 1.1 This Year: 2.8 Municipal Tax Rate at Year End 2 Years Ago: 0.5542 1 Year Ago: 0.4350 This Year: 0.4660 Next Year: 0.4916 Property Taxes ($) 19,388,299 Program Revenue $11,171,114.74 - Intergovernmental & local options Intergovernmental Revenue {Empty} Other Revenue {Empty} Total Revenue $31,140,318.33 Budgeted Expenses $31,140,318.33 Is there anything else you would like the Bond Bank to know? All numbers are reported for Fiscal Years (July 1- June 30). The City expects the delinquent tax rate to decrease for FY 2023. Sign Signor's Full Name Jessie Baker Signor's Title City Manager Signature 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 MEMORANDUM To : City Council From: Jessie Baker, City Manager Paul Conner, Director of Planning & Zoning Date: February 15, 2024 Re: Growth Management Plan – Initial Discussion At your Council meeting on February 5, 2024 you asked us to add to the February 20, 2024 Council agenda an item on a future Growth Management Plan (GMP.) Relevant goals in the City Plan 2024 and related discussions: City Plan 2024 was adopted on January 29, 2024. The Plan builds on its predecessors and several planning projects and studies that have been undertaken by the community over the past decade and more. Assessments of the anticipated change and resulting needs in our community are addressed throughout the Plan and are reflected in many of the goals and actions therein. These include strategies related to expected population and housing growth, affordable housing goals, transportation and utility needs, and park and natural areas needs. Goals and actions directly connected to this discussion include: •Goal 1: Anticipate and prepare for an average annual population growth rate of approximately 1- 1.5%, and a housing growth rate of 1.5-2%. •Goal 2: Increase number of affordable housing units by 1,000 units by 2035, including 750 units affordable to households earning up to 80% of AMI. •Goal 34: Protect at least 51% of the city’s land area, prioritizing conservation of contiguous lands •Goal 55: Provide 7.5 acres of developed recreation land for every 1,000 residents •Goal 56: Provide 20 acres of natural recreation land for every 1,000 residents •Action 1: Monitor the rate of population growth, changing demographics, and land use development for consideration in allocation of City resources and improving public outreach •Action 3: Study the population carrying capacity of our city to maintain a high quality of life •Action 57: Regularly update the Official Map and Capital Improvement Program, consistent with this Plan Additionally, last month staff prepared a Planning for a Vibrant South Burlington presentation highlighting the City’s recent and ongoing projects to meet the community’s needs. Finally, the Legislature is engaging in several efforts identifying statewide needs, including on the subject of housing (Housing Needs Assessment via Act 47 to establish targets at the regional and local level throughout the State), forest blocks, state and local regulation, and investments. 180 MARKET STREET, SOUTH BURLINGTON, VERMONT | (802) 846-4107 | WWW.SOUTHBURLINGTONVT.GOV What is a Growth Management Plan and what does this mean for this Council? There are many ways GMP’s can orient to a community or business conversation. As we think about conducting one for South Burlington, here are some key questions we may want to consider: • What is the goal of a South Burlington Growth Management Plan? • How does a GMP fit within the policy direction of the City Plan? • What are the constraints Councilors are specifically concerned with? o Strategic use of the Capital Improvement Plan to make most efficient use of dollars and infrastructure? o Municipal and educational capacity of the current staffing levels? o Municipal and education capacity of our current infrastructure? Or planned infrastructure? o Our land’s carrying capacity? And if so, what are our density/housing goals in existing and planned built areas? o The growth needed to support our businesses and institutions? o Our ability to implement the values and vision for our community? • Are we looking to establish tools to manage growth to the rate at which adequate public facilities and services can be provided? • Are we looking to establish tools to incentivize a certain type of growth in order to meet workforce and other community good needs (for example, investment in the TIF District or to meet workforce needs at partner institutions)? Governance Structure: To develop a well informed GMP, we need to engage many sectors in our community. The Council may want to consider standing up a Special Task Force to guide this effort in conjunction with the Council, Planning Commission, City Committees, School Board and Administration, City staff and other partners in the City. We do want to note that the Planning Commission has a significant work plan for the next six months to two years. Adding some governance capacity through a Task Force may help - and be more expansive. Resources: A successful GMP will need to be data-driven and research based. We recommend allocating future funding to this effort to support the work of informed consultants, public engagement processes, and potentially the need to purchase data sets. Growth Management Plans: Here are some resources that might be helpful to review. There is a wide range of how growth management is addressed, including notably a significant statewide structure in Washington State and an urban growth boundary and reserve system in Oregon with related goals. As referenced above, Vermont’s Legislature has taken steps in this direction in recent years. • City of Orlando • City of Topeka • City of Winston-Salem • Town of Williston • Oregon State • Washington State o Urban Growth Area Guidebook (2012) o Clark County, Washington Growth Management Plan Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Must do In place of a municipal recreation facility, convene  community partners to discuss bringing a non‐profit  community center provider to the City  Staff have participated in several conversations with  community groups to discuss needs and scoping of a  community center While community conversations continue, there are no  definitive plans at this point.  Must do City Assuming Ownership of Public Infrastructure *Complete DPW standards for assuming city ownership of privately developed infrastructure *Develop inventory of current agreements *Tie maintenance needs to resource planning Our DPW standards remain in an unfinished state. Other  priorities have prevented us from finalizing this task. *DPW standards have been worked on in January/February 2024. We anticipate completion in FY24. *Current inventory of agreements will be completed once a new Deputy City Attorney is on board. Must do Plan for the transformational and effective use of ARPA  funding *Council discussed on 9/18/23. *A slate of projects will be brought back to Council in November. The Council made a number of ARPA decisions as part of the  FY25 Budget process.  The amount remaining to be allocated  by 12/31/24 is $1.376M.  An overview will be presented to  the new Council as part of their orientation.  Must do Hubbard Natural Area:  Complete design phase and bid  construction for summer 2024 *Design work continues. On schedule. *The City Manager will prioritize exploring a conservation easement in Q2. Preliminary Plans are complete and planning for DRB  application is underway. On track for Summer 2024  construction Must do South Village Field:  Determine future use and work with  developer on construction *Staff met with developer. *Conversations underway with HOA leadership. Conversations with HOA leadership will take place this  spring.  This has been on hold pending other priorities and  conversations about the area.   Must do Support and partner with the School District on long‐term  capital planning for school capacity Continues to be a topic at monthly City/School Meetings.*The implications of Act 127 will continue to be a discussion between the Council and School Board. *City staff completed a presentation in January that outlines planned, actual and future development rates in conjunction with enrollment growth. Must do Following the City Plan 2024 adoption, outline the multiyear  strategy and funding for complementary plans to include:  Parks Master Plan, Housing Needs Assessment, Economic  Development Strategic Plan, and Cultural Plan To start after the CityPlan 2024 is adopted.*Council has assigned $125,000 in ARPA Funds to the development of a Parks Master Plan.  *A multi‐year strategy will be developed in next quarter following 1/29/2024 City Plan adoption. *Discussion have been held about a phased approach  between the Parks Master Plan and the Open Space Plan.  Must do Update Recreation Impact Fee ordinance (with full impact  fee ordinance review) Staff has held initial scoping meeting for impact fee update  project On hold pending other priorities May do Increase Community Gardens throughout the community A new Recreation and Parks Director will start on October  30th. On hold pending other priorities May do Modernize rules and regulations on dogs and common  spaces for dogs *Including considering LDR updates for multi‐family homes A new Recreation and Parks Director will start on October  30th. *The Planning Commission received an initial update  concerning possible expansion of Site Amenity requirements  in the Land Development Regulations; to be further reviewed in winter 2024 including functional uses. Affordable and Community Strong:  Creating a robust sense of place and opportunity for our residents and visitors. Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 1 Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 May do Work with GMT to improve connectivity throughout the City  to include in‐city connections Staff and GMT met in September to outline key subject areas  with intention to continue dialogue, hold quarterly meetings,  and convene regional stakeholders. *In December meth with GMT, CATMA and UVM to start  initial conversations. *Ongoing conversations with Howard Center to increase  frequency of routes to their clinic on San Remo Drive Pending  Resources Initiate Parks Master Plan process *Council discussed as part of potential ARPA distribution. *Council to consider Municipal Planning Grant application at  10/16/2023 meeting. *Staff is developing initial scope of work and relationship to  other prior and current projects. Parks Master Plan outline and identification of needs in  underway between DPW and Rec & Parks before preparing  RFP and procuring a consultant paid through ARPA funding. Must do Strengthen Dispatch service provision *2 on at all times *Implement Computer Aided Dispatch *Contract with other communities *Monitor state legislation The computer‐aided dispatch system was implemented and  went live on September 26 for SBFD. Currently in progress of a renovation in the dispatch center  that will replace end of life radio consoles and increase the  number of dispatch positions from three to four. This  additional capacity would allow us to consider municipal  contracts to dispatch other communities.  May do Streamline Land Development Regulations Actively being developed in concert with S.100 / Act 47 LDR  amendments. Planning Commission is reviewing policy‐ decisions as staff prepares specific language May do Actively work with City Center area building owners to seek  out smaller scale, local businesses to occupy first‐floor  commercial space Initial conversations held with developers about marketing  the spaces. Working on a Request for Quotes for a consultant to assist  the City in developing a parking ordinance and governance  structure for parking management in City Center.  In the  interim, staff are exploring time restrictions on parking on  Market Street until a management system can be  implemented.   May do Build a regional stormwater collaboration We submitted a proposal to retain a fellow to investigate this  with 5 other communities. Awarded grant funding to hire a research fellow (hosted by  Essex) to look into regionalization idea. The position has  been posted and interviews are scheduled for late February.  May do Update Sign Ordinance:  City Center appropriate standards  and political signs Staff met with Economic Development Committee  10/10/2023 to review and get feedback on draft  amendments Staff is preparing to bring the draft revised sign ordinance,  following feedback from the Economic Development  Committee, to Council early in the spring May do Update Peddlers Ordinance to support creative businesses  and food trucks Staff has initiated amendments, applying best practices from  communities with similar objectives. On hold pending other priorities May do Assess Commercial/Industrial Districts for opportunities for  housing, support services, and for reserving space for  industrial‐only *Draft CityPlan 2024 includes vision to allow for these  opportunities.  *Discussion initiated with EDC in FY '23; to continue later this  year.  The Tech Hub puts additional emphasis on this as an  opportunity.  Council approved a letter of commitment  which includes this being taken up this year. Pending  Resources Activate Market Street and City Center with events *Energy festival held on 9/30/23.   *Partial funding identified for Illuminate Vermont. *An April Illuminate Vermont is in planning.   *A storywalk is in development. Opportunity Oriented:  Being a supportive and engaged member of the larger regional and statewide community. Walkable:  Bicycle and pedestrian friendly with safe transportation infrastructure. 2 Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 Must do Complete Transportation Demand Management Regulations  to be nimble for City Center Staff continues to work with RSG and CCRPC Planning Commission reviewed concepts / drafts in  December 2023 and January 2024; Energy Committee in  January 2024, and Bike/Ped Committee in January and  February 2024. On schedule for completion in spring 2024. Must do Complete Transportation Impact Fee update (with full impact  fee ordinance review) Staff has held initial scoping meeting for impact fee update  project Staff has reviewed and revised candidate project list to align  with adopted Capital Improvement Program. Scheduled to be  presented to Council for consideration in Spring 2024. Must do Substantially complete the Bike/Ped Master Plan Consultant selected. Working to refine scope and sign  contract. Existing conditions assessment and early public engagement  processes have begun. Scheduled to be complete in  October/November 2024. Pending  Resources Conduct a sidewalk condition inventory and prioritize  maintenance in future budgets (current budget is $2k/year) *Weigh needs against shared use path and paving needs DPW has an ad hoc list of sidewalk issues. Planning to discuss  this in more detail during FY25 budget conversations. Pending FY25 budget approval we will have the financial  resources to begin moving this work forward. Must do Bartlett Bay Wastewater Treatment Facility:  Complete  engineering and design Contract for final engineering has been executed. Project has  an 18 month design schedule. Final engineering is underway. Must do Water Tank in High Service Area: Engineering, bond vote,  apply for funding Contract for final engineering has been executed.Bond vote schedule for TMD 2024. DPW has been conducting  outreach to community in January and February. Must do Finalize Auclair conservation plan with Vermont Land Trust Staff is coordinating with VLT On January 29th, closing was completed on the permanent  conservation of two parcels off Hinesburg Road formerly  owned by the Auclair family, consisting of 104 acres of Parcel  B (west side of Hinesburg Road, north of Cheesefactory Rd)  and 65 acres of Parcel C (west side of Hinesburg Rd, south of  Cheesefactory Rd). Must do Address implications of S.100 *Update LDRs  *Establish a Water Service Area (including areas where we  intend to infill and upzone) *Establish a Wastewater Service Area *Update Wastewater/Stormwater ordinance & update  drinking water ordinance  *Staff presented outline of work to be done to Planning  Commission in September.  *Staff is reviewing LDRs for first draft later this fall and has  selected consultant for mapping work and analyses. Planning Commission and staff are actively reviewing and  preparing draft amendments. Staff from P&Z and DPW met  in January and February 2024 to prepare proposed updates  to water & sewer ordinances for Council consideration in  Spring 2024. The water ordinance is being revised and is  planned for council's consideration in March 2024. Must do Improve management/maintenance of City‐owned Natural  Areas and Public Parks Working to fill the vacant positions in the Parks Maintenance  Division.   We are currently interviewing to hire a Parks Foreman. We  anticipate filling other vacant positions subsequent to filling  this position. Pending  Resources Enhance City's municipal tree nursery No action No action Green & Clean:  Emphasizing sustainability for long‐term viability of a clean and green South Burlington 3 Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 Must do Adopt City Plan 2024 Planning Commission held public hearing and voted to  approve submittal of CityPlan 2024 to Council at their  10/3/23 meeting.   Council to receive on 10/16/23. City Plan 2024 was adopted by Council on January 29, 2024! Must do Modernize the City's Personnel Policies and Practices *Executive team is currently reviewing the legal draft.   *Leadership Team will review for feedback and then  Executive Team will finalize. *City Council will considering over the winter with  implementation and training of staff to follow.   Updated personnel policies were adopted by Council on  February 5, 2024. Employee training began on February 14  and will continue through the end of February. Must do Assess and modernize the City's financial system, policies,  and procedures  No action yet.Will kick‐off between the budget/audit and year end window  of time.  Must do Assess and modernize the City's hiring, onboarding, and  evaluation processes *NeoGov applicant tracking and onboarding modules were  purchased in July.  *HR is currently engaged in the design of the applicant  tracking system.  *Applicant tracking on schedule to be implemented in late  November.   *Onboarding module design will follow.  *New performance evaluation processes are included in  policy handbook update. The applicant tracking module of NeoGov was developed,  tested and implemented. The system went live on January 5,  2024.  The Onboarding module is the second part of the  process and is currently under development.  Anticipated  implementation of the Onboarding module is  late May or  early June 2024. Must do Modernize City communications:  Redesign website,  implement communications policies, and focus on resident  and neighborhood‐based engagement and outreach *Communications policy and standards guides to be  presented 10/18.  *The website redesign has been discussed with our current  vendor, Revize. Since this will require a paid upgrade, we will  consider other vendors' capabilities and costs before moving  forward with Revize.  *In the meantime, Revize has provided training on how to  improve our site within the framework of the current design. *The communications policy was adopted on November 20,  2024, and incorporated feedback from the leadership team  presentation. Policy and standards guide, templates, logos,  and other resourced were made available to the team via a  new Communications SharePoint site. *Current website vendor Revize offered a no‐charge visual  refresh of the site, including more modern modules  (calendar, text editor, etc.). Will evaluate benefits of this  option vs. full redesign. Departments have also made efforts  to improve organizational structure. *Engagement and outreach will be developed as part of  Equity in Outreach project in first half of 2024 Must do Modernize cross‐department permitting (and building  history) systems and processes *P&Z / Deputy City Manager have met on coordination.   *Staff have participated in several software demos in  preparation for issuance of an RFP/RFQ. *Cross‐departmental work group has met weekly in 2024 to  participate in software demonstrations and craft an  RFP/RFQ. The work group is expecting to release an RFP/RFQ  at the end of February for services Must do Adopt a Rental Ordinance and stand up a Rental Registry Council continued discussion of draft scheduled for  November 2023 City Council public hearing and possible action on 2/20/2024 Core Municipal Services and Administration 4 Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 Must do Focus on equity and inclusion:  Complete the 'Equity in  Planning' Project, define shared goals, and work toward  engaging more voices at policy tables *Staff project team kick‐off held in early October 2023.   *Staff is preparing RFP for release this fall. City staff has selected a firm from among 4 respondents to  the RFP issued in December 2023. A contract is being  finalized with kick‐off expected later in February. Must do Complete a utility rate study to ensure our wastewater and  drinking water rates can appropriately fund the required  maintenance of our existing system and can pay for future  capital needs.  *Rate study presented to council in first quarter of FY24.  *Planning additional discussions with Council in FY24. Work is considered complete unless / until Council would like  to have a follow up discussion. Must do Complete Charter Committee process and support Council in  considering recommendations *Charter Committee presented recommendations to the  Council on 9/18/23.   *Council opted to pause the Committee's work and have  internal conversations on community engagement in the  future. Charter change to expand the School Board is on the Town  Meeting Day ballot. Must do Complete review, digitization, and modernization of City's  municipal ordinances  *City Attorney has returned comments to Municode.   *Anticipate bringing the full format change to the Council in  early winter. New City Code of Ordinances adopted by City Council on  2/5/24 Must do Develop a process, related procedures, and a database for  affordability covenants Not yet started.Pending the onboarding of a new Deputy City Attorney Must do Conduct analysis of development trends, tax generation, and  potential service capacity Prioritizing hiring the GIS Data Analyst position.Development Trend review and presentation prepared for  Steering Committee January 2024 Must do Plan for the future of 575 and 577 Dorset Street including  transfer of ownership to the School District and CHT *A City/School project team has met twice.   *Engaged Dore + Whittier to explore separating the HVAC  systems. *In the process of engaging Krebs & Lansing to conduct a  survey and manage the subdivision process. *Need to identify funds to continue work. It is estimated to cost approximately $1.7M to separate the  properties.  The School has indicated they are not interested  in moving this forward at this time.  We will continue  conversations about how to be supportive and efficient  neighbors. May do Consider revamping the Committee structure after the  adoption of the City Plan 2024 After the adoption of the CityPlan 2024.The CityPlan 2024 was adopted on 1/29.  Staff will put  together a recommendation, discuss it with the new Council  and potentially bring it to Committees in the Spring of 2024. May do Following Charter and Comp Plan work, engage with  community about how to best provide services at a more  neighborhood level After the adoption of the CityPlan 2024.Not yet started City Center and Tax Increment Financing District 5 Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 Must do Dorset Street Signals:   *Complete construction in October 2023 *Plan for Adaptive signal technology.  *Include upgrade of hardware at other signals around the  City in CIP. *Construction is underway, but slightly behind schedule due  to material delivery schedule.  *Adaptive technology will be in place with the current  project.  *On‐going software fees will be included in the FY25 budget.  *Hardware upgrade for additional traffic signals will be  proposed as part of the FY25 budget. Construction is underway and scheduled for completion in  March 2024. Adaptive technology will be in place in March 2024. Must do Focus on Redevelopment:  Be nimble in support of future  City Center areas for priority redevelopment in the next ten  years *U Mall  *San Remo Drive *Hinesburg Road/Williston Road *Small property owners  *Land Development Regulations Updates:  Continue  revisions to City Center Form Based Code and associated  Official Map updates to support successful development of  the downtown *Staff and Council held a walking tour of City Center to  outline opportunities *Updates to LDRs including rare circumstance of "L"‐shaped  roads within City Center FBC, approved by the Planning  Commission on 10/10/23 for submittal to Council on  10/16/23. *Council considering a Bylaw Modernization Grant  application for San Remo Drive on 10/16/23 *Staff is finalizing a contract with a consultant to perform a  review of the City's Form Based Code and make  recommendations for architectural and design  improvements discussed by Council and Planning  Commission in Fall 2023 Must do Garden Street * Complete right of way acquisition and finalize construction  documents  * Bid out project * Demolish 1270 Willison Rd * Coordinate with State Offer letters in development.One offer letter has been accepted.  Construction documents  for the portion between Trader Joes and Healthy Living in  progress. Must do Williston Road Streetscape:   * Complete right of way acquisition and finalize construction  documents  * Coordinate with State * Prepare to bid project for FY25 construction ROW documentation in progress ROW Appraisals in process. Must do East West Crossing ‐ Pedestrian Bicycle Bridge over I‐89  Project * Complete right of way acquisition and finalize construction  documents  * Identify other funding sources *Offer letters out to property owners. *Additional gap funding being sought for project (two  applications submitted for Federal discretionary funding). ROW wrapping up.  Additional funds being applied for with  third application. Must do City Center Park Boardwalk Connection: *Finalize design and engineering  *Bid, award construction contract, and start construction In final design.  Still in final design, planning on bidding as soon as  documents are complete. Must do Explore creating a "village green" in City Center Obtaining consultant to conduct work.Contracted with consultant, they are creating documents for  outreach after Town Meeting Day 6 Role of Council Role of City Manager and Leadership Team Report #1 Report #2 "This is the vision for  our community" "This is how we are accomplishing this vision."October 13, 2023 February 20, 2024 Category City of South Burlington FY24 Policy Priorities & Strategies ADOPTED by the City Council on July 17, 2023 Report #2:  February 20, 2024 Must do Renew New Town Center and Renew and Expand  Neighborhood Development Area Designation *City applied for and was approved for expansion of  Neighborhood Development Area in September *Draft Application for NDA and New Town Center submitted  to State on 10/1/23 The Downtown Development Board unanimously voted to  renew the City's Neighborhood Development Area and New  Town Center designations in January 2024. May do Begin exploration of converting the City's "Base" Designated  New Town Center to a Designated Downtown Staff participated statewide workshop and provided  feedback to legislative committees examining designation  program and Act 250 under Act 47 Not yet started Must do TIP1.  Complete Transportation Implementation Plan (TIP)   *Identify financial and human resources to implement the  TIP ‐ What can we do and how do we pay for it? *Information presented to council at 10/2/23 council  meeting. *Public Hearing scheduled for 10/12/23. *Funding of plan will be presented with the FY25 budget. TIP was completed and recommendations integrated in the  FY25 Budget. Pending  resources TIP2. Inventory current multi‐family electric vehicle  charging network needs/capabilities to inform a policy  for existing multifamily properties (new and existing) to  install electric vehicle charging equipment.  Pending staff. Must do GOIP1.  Complete Government Operations Implementation  Plan (GOIP) *Strategically plan to achieve 2030 goals *Identify financial and human resources to implement the  GOIP ‐ What can we do and how do we pay for it? *No consultants completely responded to the RFP *Staff redirected to complete this work and is preparing the  draft plan for presentation to Council in November. *Draft Plan was presented to Council in November 2023 and  incorporated into 2025 budget *Final Plan is being drafted and is expected to be completed  late winter 2024. Pending  Resources GOIP2. Once completed prioritize: *Implement financial policy and CIP planning to  integrate EV only vehicles into the Fleet once they are  operationally feasible and meet budget goals *Develop a municipal green purchasing policy *Consider an ordinance to limit or ban small engines  (leaf blowers and trimmers) Pending staff. Pending  Resources Explore resources to develop a Buildings/Thermal ImplementaNot yet started.Not yet started Must do Update LDRs to implement targets of Climate Action Plan,  including bike/ped parking, EV charging, infill in built areas,  others Staff is developing updated Bike/Ped Parking standards and  updating the transportation standards in LDRs (see above) See above under LDR amendments May do Advocate to maintain land application of biosolids Not yet started.Not yet started May do Consider an ordinance on regulating private property owner  mowing wetland buffers Not yet started.Not yet started May do Develop an Integrated Pest Management Policy for City  properties Not yet started.Not yet started Climate Action Plan 7 180 Market St South Burlington, VT 05403 802-846-4105 February 20, 2024 The following 2024 first, second, and third class liquor licenses, tobacco licenses and outside consumption permits were approved by the South Burlington Liquor Control Board after review by the City tax, fire and police departments: NAME DESCRIPTION Delta Hotels by Marriott Burlington Outside Consumption Permit Homewood Suites First Class Restaurant/Bar & Second Class License Eagles, Fraternal Order Of Aerie #793 First Class Club & Third Class Club License & Outside Consumption Permits Gracey’s Liquor Store Second Class Liquor & Tobacco License & Tobacco Substitute Endorsement Gracey’s Store Second Class Liquor & Tobacco License & Tobacco Substitute Endorsement Simon’s Store & Deli Second Class Liquor & Tobacco License & Tobacco Substitute Endorsement Sugarsnap First Class Commercial Caterer & Third Class Commercial Kitchen Walgreens #11526 Second Class Liquor & Tobacco License Walgreens #17447 Tobacco License SOUTH BURLINGTON LIQUOR CONTROL BOARD Helen Riehle Meagan Emery Tim Barritt Larry Kupferman Andrew Chalnick