CITY OF PROVIDENCE, RHODE ISLAND COMPREHENSIVE ANNUAL FINANCIAL REPORT Fiscal Year Ended June 30, 2014 City of Providence Finance Department 25 Dorrance Street, Providence, RI 02903 YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS Exhibit Pa e s) INTRODUCTORY SECTION: Letter of Transmittal ................................................................................... Organization Chart..................................................................................... List of City Officials .................................................................................... GFOA Certificate of Achievement.............................................................. FINANCIAL SECTION: Report of Independent Auditors ................................................................................... fi6►: Basic Financial Statements and Required Supplementary Information: Management's Discussion and Analysis....................................................................... 3-11 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position ..................................................................................................... Statement of Activities .......................................................................................................... A-1 A-2 12 13 Fund Financial Statements: Governmental Funds: Balance Sheet....................................................................................................................... Statement of Revenues, Expenditures, and Changes in Fund Balances ............................. Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds (B-2) to the Statement of Activities (A-2)....................... B-1 B-2 14 15 B-3 16 Proprietary Funds: Statement of Net Position ..................................................................................................... Statement of Revenues, Expenses and Changes in Net Position ........................................ Statement of Cash Flows...................................................................................................... C-1 C-2 C-3 17 18 19 - 20 Fiduciary Funds: Statement of Fiduciary Net Position ...................................................................................... Statement of Changes in Fiduciary Net Position .................................................................. D-1 D-2 21 22 23 - 57 Notes to Financial Statements........................................................................................... Required Supplementary Information: Budgetary Comparison Schedule for the General Fund ....................................................... Budgetary Comparison Schedule for the School General Fund ........................................... Notes to Required Supplementary Information ..................................................................... Schedule of Funding Progress.............................................................................................. Schedule of Funding Status................................................................................... Schedule of Changes in the Net Pension Liability and Related Ratios............................ Schedule of Contributions...................................................................................... Schedule of Investment Returns.............................................................................. E-1 E-2 E-3 E-4 E-5 E-6 E-7 E-8 58-62 63 64 65 66 67 68 69 Other Supplementary Information: Non-major Governmental Funds: Combining Balance Sheet .................................................................................................... Combining Statement of Revenues, Expenditures, and Changes in Fund Balances.........,. F-1 F-2 70 71 (CONTINUED) CITY OF PROVIDENCE, RHODE !~► a Nn YEAR ENDED JUNE 30, 2014 TABLE OF CONTENTS Exhibit Pa e s) School Grant Funds: Combining Balance Sheet .................................................................................................... Combining Statement of Revenues, Expenses and Changes in Fund Balances ................. G-1 G-2 72 73 Agency Funds: Statement of Changes in Assets and Liabilities.................................................................... I-1 74 Capital assets schedules: Capital Assets Used in the Operation of Governmental Funds ........................................... J-1 75 Schedule STATISTICAL SECTION: Net Position by Component .................................................................................................. Changes in Net Position........................................................................................................ Fund Balances, Governmental Funds .................................................................................. Changes in Fund Balances, Governmental Funds ............................................................... Tax Revenue by Source........................................................................................................ Assessed Values and Estimated Actual Values of Taxable Property ................................... Principal Property Taxpayers ................................................................................................ Property Tax Levies and Collections..................................................................................... Ratios of General Bonded Debt Outstanding........................................................................ Direct Governmental Activities Debt ..................................................................................... Legal Debt Margin Information .............................................................................................. Pledged Revenue Coverage ................................................................................................. Demographic and Economic Statistics ................................................................................. Principal Employers .............................................................................................................. Full-Time Equivalent Employees by Function ....................................................................... Operating Indicators by Function .......................................................................................... Capital Assets Statistical by Function ................................................................................... 1 2 3 4 5 6 7 8 9 10 11-12 13 14 15 16 17 18 76 77-78 79 80 81 82 83 84 85 86 87-88 89 90 91 92 93 94 (CONCLUDED) CITY OF PROVIDENCE Angel Taveras, Mayor Introductory Section • • • • Letter of Transmittal Organizational Chart List of City Officials GFOA Certificate of Achievement CITY OF PROVIDENCE Angel Taveras, Mayor December 31,2014 City Council Providence, Rhode Island 02903 Honorable Members, Rhode Island state law requires that all general purpose, local governments publish a complete set of audited financial statements within six months ofthe close of each fiscal year. This report fulfills that requirement for the fiscal year(FY14)that ended June 30, 2014. Management assumes full responsibility for the completeness and reliability ofthe information contained in this report, based upon a comprehensive framework ofinternal controls established for this purpose. Because the cost ofinternal controls should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Marcum LLP (formerly Braver P.C.) has issued an unmodified ("clean") opinion on the City of Providence, Rhode Island's financial statements for the year ending June 30, 2014. A copy of their independent auditor's report is located at the front ofthe financial section ofthe report. Management's discussion and analysis(MD&A)immediately follow the independent auditor's report and provide a narrative introduction, overview and analysis ofthe basic financial statements. The MD&A is intended to complement this letter oftransmittal and should be read in conjunction with it. Profile of the Government The capital city ofProvidence was founded in 1636 and incorporated in 1831. It occupies a total land area of 18.1 square miles and an additional 1.9 square miles of water; is located at the head of Narragansett Bay on the Providence River, and is the major population, financial, educational, governmental, and industrial center of Rhode Island. Situated on the Boston- Washington Interstate 95 corridor, with proximity to multi-billion dollar markets and multi-million population centers, residents and businesses have ready access to all major forms of transportation, including AMTRAK,Providence &Worcester Railroad, T.F. Green International Airport, the Port ofProvidence and Interstates 95 and 195. Multi-modal transportation has most recently been expanded with the opening of Interlink, increasing commuter rail service connections with the Massachusetts Bay Transit Authority. Providence has the largest population of Rhode Island's 39 cities and towns with 178,036 residents(2010 Census,) up 2.5 percent from 173,618 in 2000(2000 Census.) The demographic profile for the city is as follows: Caucasians 49.8 percent; Hispanics 38.1 percent; African Americans 16.0 percent; Asians 6.4 percent; and Native Americans 1.4 percent. The City has aMayor-Council form of government; a Home Rule Charter was adopted in 1980 and became fully effective on January 3, 1983. City government is responsible for providing such services as: general government, community development, administrative services, public safety, sanitation, public works, planning and development, workforce development, recreation, parks, and public education. The City adopts an annual budget for the General Fund, which includes the Providence Public School District. The legal level of control is by Department. Providence is Recovering Upon taking office in January 2011, Mayor Angel Taveras signed an Executive Order creating an independent Municipal Finances Review Panel to conduct a full review ofthe City's finances. On March 3, 2011,the panel delivered a report that identified a $110 million structural deficit in FY2012. Mayor Taveras took swift and decisive action to address this "Category 5 Fiscal Hurricane." He called upon every stakeholder in the city to share in the sacrifices necessary to pull Providence back from the brink of bankruptcy. He cut his own pay by 10 percent and reduced the Mayor's Office budget by 10 percent. The Mayor renegotiated union contracts with city workers, firefighters, police officers and teachers, saving approximately 10 percent ofthe value ofthose contracts in FY2012 and more than $100 million over the next several years. Mayor Taveras secured contributions from Brown University and the six other major, taxexempt universities, colleges and hospitals in Providence, totaling nearly $48 million in additional revenue over an 11-year period. In FY2013,the City reached a landmark agreement with retirees and current employees to reform the city pension and retiree health care system. That agreement saved Providence some $18.5 million in FY2013 and reduced the City's unfunded pension liability by approximately $170 million, Dett~ils ofthe agreements: Pension • PENSIONS CAPPED: In FY2023, COLAs will be reinstated only for retirees with pensions less than 150 percent of the state median income OR less than the salary of an incumbent employee of the same rank as the retiree at the time ofretirement (police and fire-retirees only,) whichever is lower. • COLA SUSPENSION: All COLAs suspended for 10 years.(Families of city employees killed in the line of duty will continue to receive annual COLA.)After 10 years, COLAs will only be reinstated for retirees who are under the pension cap and COLAs will end when the cap is reached. • ELIMINATION OF HIGH-END COLAS: A115- and 6-percent compounded COLAs are permanently eliminated. • FUTURE COLAS LIMITED: Retirees whose COLAs are reinstated in FY2023 will receive annual raises of 3 percent compounded, or what is called for in their contract, whichever is less. • ONE-TIME STIPEND IN FY2017: In FY2017(Year 5 ofthe agreement), retirees collecting pensions of less than $100,000 will receive a stipend of $1,500. This one-time payment will change their future pension calculations. • CONTINGENT STIPEND IN FY2020: In FY2020(Year 8 ofthe agreement), retirees collecting pensions of less than $100,000 may receive a- separate one-time stipend of up to $1,500 if the city achieves savings through the creation of a self- insured dental plan. The potential payment would not change future pension calculations. • SUSTAINABLE REFORMS TO PENSION CALCULATIONS: Future pensions will be calculated based on the four highest years of service. The current system calculates pensions based upon the highest three years. • CONTINUED PENSION CONTRIBUTIONS: Employees will be required to contribute to the pension system for as long as they earn credit toward a pension. • ACCIDENTAL DISABILITY: Accidental disability pension calculations will be based on 66 2/3 of the employee's final salary. Healthcare (pertains only to police,fire and retiree association) • MEDICARE SETTLEMENT: Retirees 65 years of age and older will move onto Medicare. • PART B SUPPLEMENT AND MEDICARE PENALTY: The City will provide funding to cover Medicare's Part B supplement and any penalties retirees will be required to pay. • PART D PRESCRIPTION DRUG COVERAGE: The City will also provide funding to cover Medicare Part D prescription drug coverage. • UNDER 65 HEALTH COVERAGE UNCHANGED; Health care for retirees under the age of65 will not be changed. These reforms saved the City $4 million ofthe $18.5 million noted above in FY2013 and are projected to save the City more than $40 million over the next 10 years. Through collaborative efforts and shared sacrifice, the Taveras administration, in partnership with the Providence City Council and stakeholders across the city, has all but eliminated the City's $110 million structural deficit and ended FY2014 with a $1 million surplus in the general fund. Creating Jobs and Growing Providence's Economy Just as bold actions were necessary to weather Providence's "Category 5 Fiscal Hurricane" and put the city on the path to long-term financial sustainability, equally bold actions have been taken to lay the groundwork for a sustained recovery. In Apri12013, Mayor Angel Taveras announced a 20-point economic development action plan, Putting Providence Back to Work. That plan builds on Providence's competitive advantages: a knowledge economy anchored by best-in-class hospitals and universities, vibrant arts and cultural centers, a strong maritime industry and active Port, thriving small businesses in local neighborhoods, and a young and educated workforce. The City is also making long-term investments in basic municipal operations: strong schools, safe neighborhoods, reliable public infrastructure and the timely provision of city services. In terms ofthe successful fulfillment ofthat plan, the City has achieved much progress in realizing its 20-step objectives: 1. Freeze Commercial Tax Rates. In its FY2014 budget, the Taveras administration successfully worked with the City Council to freeze Providence's commercial tax rate. This was the third calendar year for such a freeze. 2. Fixing the Permitting Process. The City of Providence established a new departmental subgroup focused solely on small permit application review, so simple small-dollar projects could proceed more quickly and not be held up by larger developments. We expedited smaller projects, created an on-line portal for developers and residents to follow; increased the number of personnel, and co-located Fire Inspectors with Building Inspectors for greater efficiency. The Department of Inspection &Standards now has free-standing kiosks, where developers and property owners can start/ track their projects and timelines. 3. Remove Barriers to Redevelopment. The Providence Redevelopment Agency is aggressively pursuing a range or economic development tools to spur the development of key real estate parcels in the city, and we have had much success to date. The former Sportsman Inn has been transformed into The Dean Hotel - a popular, award-winning boutique hotel with restaurants and an authentic Gei~nan beer garden. The George C. Arnold Building has been purchased by the Providence Revolving Fund and private owners to transform that site into a prosperous mixed use development, which we expect to open by winter 2014. iv 4. Develop Surface Lots Citywide. The Taveras administration is preparing a new citywide tax stabilization ordinance designed to incentivize new development on Providence's surface parking lots. 5. Reinvent Kennedy Plaza. In partnership with a range of stakeholders, Providence is undertaking a fundamental infrastructure reformation of its downtown hub, Kennedy Plaza. The project is designed to make the downtown more attractive for visitors, bus travelers, businesses and residents alike. Work began in summer 2014 and will conclude by winter 2014. 6. Invest in Storefront Improvement. The Taveras administration has leveraged HUD CDBG funds to start a new $125,000 matching grant program for eligible, main-street small businesses for low-cost/ high —impact storefront capital improvements. The first such project was funded in late October 2014, and others are lined up to take part in the months ahead. 7. Provide Targeted Back Office Supports. Providence currently provides financial and technical assistance to small businesses and/or eligible start-ups through its PEDP (Providence Economic Development Partnership) and CDBG (Community Development Block Grant) programs. Technical assistance is also provided in partnership with the U.S. Small Business Administration, the Center for Women &Enterprise and other public agencies. Through joint job fairs between the Cities ofProvidence and Cranston and Workforce Solutions of Providence/ Cranston, we have hosted 18 separate free industryspecific job fairs and assisted 3000 unemployed area residents and 500+ companies seeking skilled workers. Our 14 monthly workshops to date, with the U.S. SBA,have provided free technical aid to businesses for everything from social media promotion, to becoming federally /state/ locally certified as W/MBEs. 8. Reform the City's Zoning Ordinance. Providence has completed a comprehensive update ofthe City's existing zoning ordinance, aligning it with the City's Comprehensive Plan, and providing goals for smart growth, sustainable, cultural, equitable and transit-oriented development. Its second passage is due in late November 2014 with signing by the Mayor shortly thereafter, 9. Invest in Historic Preservation. Established in 1642, Providence is rich with history. We have worked with the General Assembly, the Office of the Governor and local advocates to promote reinstatement of this critical tax credit. The City will continue to explore passage of this credit in the future. v 10. Market Available Real Estate. Providence has created and maintains a public database of propet-ties available for development, which is accessible on the City's homepage www.providenceri.com (Open Portal.). Beyond being available online, Providence's available real estate is aggressively marketed to site selection consultants nationwide. 11. Raise Participation in State Incentive Programs. Using a range of outreach strategies, the City has conducted active outreach to small businesses, merchants associations and business groups to educate them about available state (local and federal resources.) Our city's economic development website also conveys that same information. www.providenceri.com/economic-development. Additionally, more than 2700 letters were mailed to businesses located within the city's two Enterprise Zones, to encourage all eligible (C-Corporations)to take part in the job-creation incentive program. 12. Review Statewide Regulatory Policy, The City proposed a full review of Rhode Island labor, tax and regulatory policy, in cooperation with both business organizations and labor representatives; the goal was to align Rhode Island standards with national norms. At the same time,the Rhode Island Office of Regulatory Reform and Governor's office conducted their own review and published results on-line. 13. Raise Student Achievement. Providence is implementing two new, award winning programs Providence Talks and Providence Reads - to help ensure Providence children enter kindergarten ready to learn and reach grade level reading proficiency by third grade. 14. Expand Apprenticeship Programs. Providence will continue to work on expanding its portfolio of apprenticeship programs, looking first to Providence's working waterfront and creative economy. 15. Support-Nursing &Health Sciences. Providence joined the institutions within the state of Rhode Island in celebrating the agreement between the University of Rhode Island and Rhode Island College to establish the state's first joint nursing school at the abandoned South Street Station, on the edge of the Knowledge District, in partnership with Brown University. The Providence Redevelopment Agency played a lcey role in articulating that agreement. The end result will be more trained nursing personnel to meet the growing demands of aging populations, creation of well-paying jobs for local and locally-educated youth, and augmentation of a continuum of education in the health sciences(Brown's Warren Alpert Medical School, JWU's newly-opened Physician Assistant School, and now,this nursing school). It will also mean the revitalization of a key property in/near the city's knowledge district (the LINK). vi 16. Expand Aduit Education. Workforce Solutions of Providence/Cranston is continuing to seek new pat-tnerships between Rhode Island's institutions of public higher education and local community organizations. Encouraging skills for workers will improve employability and career growth. 17. Make Streetcars a Reality. Providence is aggressively pursuing asustainable- funding strategy to bring this transpot~tation option to fruition, and in late summer, members ofthe Rhode Island Congressional Delegation announced an award of $19 million for development ofthe proposal, 18. Rehabilitate Foreclosed Properties. Providence has reinvigorated its Providence Redevelopment Agency to take abandoned properties and restore them to the tax rolls. The PRA is also in the early stages of conversations with Community Development Corporations to direct the rehabilitation of abandoned and vacant residential properties in our neighborhoods. 19. Market Providence. In the summer of2013 Providence conducted a regional marketing and advertising campaign encouraging visitors to "Come to Providence." Since then, efforts are being made to promote our capital city: we have produced afour-color, multi-page brochure (in final edits) that will be posted to our city's homepage and Economic Development page, be widely disseminated to developers, contractors and site selectors. The PWCVB (Providence Warwick Visitors Convention Bureau)is also partnering with the Department of Art Culture +Tourism to promote this "Come to Providence" campaign, and Economic Development Director James Bennett has traveled to 301ocations to promote our city, including the widely attended P3 conference in Dallas (2014.) 20. Improve the Visitor Experience. The Department of Art Culture +Tourism has pat~tnered with Rhode Island Monthly and other community partners to launch a new on-line interactive arts calendar to enhance the visitor's experience to Providence. Development in Providence The fruits of labor are evident with the expansion ofjobs and industry in our capital city. Examples include the $10 million restoration of the historic Arcade building —America's oldest indoor mall —with 17 small businesses and 40-plus micro-lofts; the recent $20 million, fourbuilding Providence G project; the $14.2 million upgrade ofthe Regency Plaza; the location of 350 employees with Hasbro in our downtown; the opening ofthe first-ever Alex and Ani University, one of Inc. Magazine's 500-fastest growing companies; creation of a new downtown circulator in its final stages, and the renovation ofPPAC Square with the renowned Performing Arts Center and its Broadway productions. vii We have helped with the purchase and $13 million restoration ofthe landmark Biltmore Hotel; restored a decrepit structure into an internationally-famous The Dean Hotel; completed a $20 million Johnson &Wales University 746-space parking garage with lower-level retail, and an adjacent multi-million dollar Johnson &Wales University Center for Physician Assistant Studies. Add to this the vibrancy of our Rhode Island Convention Center and Dunkin Donuts Center, attracting more than 370 first-rate events, including America's Got Talent, professional and college sports, and major concerts —with more than half-a-million attendees in 2011-2013 alone, contributing to some of the biggest increases in daily room rates in years. A privately-funded health care facility was also built close to the Miriam Hospital,"Highlands on East Side" with a value of $9 million; an abandoned C.J Fox mill along the busy Rt. 10 state highway underwent a $6.5 million transformation into office space; and along-empty Foundry Building has undergone substantial improvements, including a $40 million construction project known as "The Promenade." The abandoned South Street Station is being transformed into the state's first joint nursing school by the University of Rhode Island and Rhode Island College —providing essential workforce opportunities for Rhode Island's students and a pipeline of trained professionals to add to the area's emerging health care prowess. Providence College has invested more than $90 million in on campus projects; Brown more than $40 million in off-campus projects; and a major University is expected to be moving a law school to our downtown. Providence boasts the 2"d deepest port(41-foot depth, 100-foot turning radius) making it an obvious location for growth, and with the Mayor's unwavering support of the working waterfront, zoning has been preserved to protect that working waterfront and confidence expansion can take place —leading to more well-paying, blue collar jobs and expansion of industry. Sims Metal Management has also moved its world headquarters to Providence's busy working waterfront and continued expansion at our port ofProvidence (ProvPort) with the purchase oftwo new cranes and new barge and lay-down area, is opening opportunities for post Panama-Canal development and shipping. Understanding that there is great interest in this city —with its strategic location along the busy Boston-Washington coi~idor, its immediate accessibility to all major foi~ns of transportation and proximity to multi-billion dollar markets, and its enviable world-class universities and institutions —Providence is poised for growth. In the last year, afirst-ever Rhode Island EB-5 Center was established in Providence, closely supervised by the U.S. Office of Homeland Security, it opens opportunities for new development while satisfying the burgeoning demand for visas. viii From July 1, 2011 through July 31, 2014, some $640,261,825 in construction occurred with an accompanying $12,116,982 in permit fees, according to the Department of Inspections and Standards. And in the November 2014 issue of Travel +Leisure Magazine, we were named the first-ever and number one "America's Favorite City" among 38 cities nationwide(which had been whittled down from an original 1200) and in the top five listings for categories such as bakeries, diners, notable restaurants, Gay-friendly vacations, food trucks, pizza, sandwiches, being hip/cool, art scene, galleries, cocktail bars, brunch, coffee, intelligence, quirkiness, wine and theatre, architecture and more. Other publications have singled us out for achievement,too: Architectural Digest "America's Best Small City," London Telegraph for "New England's Coolest City:" Sherman's Travel,"Top Under-rated Cities," and dozens more by HuffPost, Livability.com, and again, Travel and Leisure. Infrastructure Improvements By the end ofthe yeas, the Providence Road Improvement Project will have rebuilt and repaired more than 60 miles of city-owned roads, more than in the past decade combined. The road improvement work is funded by a $40 million bond that was overwhelmingly approved by city voters in November 2012. Improving Public Education Plans to grow the City's economy can never be divorced from efforts to improve our schools. The City is working to provide every child in Providence with afirst-class education. In total, Providence has received more than $11 million in private, philanthropic awards, and has received multiple awards for its leadership in educational reform. Providence Reads — In the fall of 2012, the City launched Providence Reads - an initiative in partnership with more than a dozen businesses and organizations - to increase grade-level reading, promote school readiness, improve school attendance and support summer learning in Providence. Mayor Taveras secured financial and volunteer support for Providence's schools from such private partners as GTECH. • Children and Youth Cabinet —The City is working closely with the Providence Children and Youth Cabinet(CYC),a diverse team of more than 100 community leaders helping to guide the future of education in Providence. Every fall since 2012, the CYC releases its 'Educate Providence' annual report to measure the City's progress in educating children from cradle to career. • Evidence2Success Pilot Site — In July 2012, the Casey Foundation chose Providence as the first site for Evidence2Success because of the City and State's commitment to investing in children and youth, and for their collaborative efforts to improve the outcomes of children in low-income neighborhoods. ix Leyendo! bilingual tutoring program — In October 2012, Cities of Service awarded Providence a $25,000 grant supported by Bloomberg Philanthropies to implement Leyendo!, a service-based initiative to increase the grade level reading proficiency of English Language Learners in Providence Public Schools. Leyendo! achieved all of its impact goals, with 94% of students seeing significant improvement in literacy. Together for Tomorrow School Improvement Grant(U.S. Dep. of Education) — In October 2012, the Providence Children and Youth Cabinet was among the national winners ofthe Together for Tomot-row School Improvement Giant. Providence received the national recognition for its efforts to turn around low-performing schools and raise student achievement in every public school. • 2012 All America City, National League of Cities —the City's plan to dramatically raise the percentage of children who are reading on grade level by the end ofthird grade earned recognition from the National League of Cities as a 2012 All America City. • "Pacesetter" Community — In January of 2014, Providence was named a "Pacesetter" Community by the Campaign for Grade Level Reading. • Providence Talks — In March of2013, the City became the $5 million grand prize winner of Bloomberg Philanthropies' Mayors Challenge for its innovative proposal to set low-income children on a path toward lifelong achievement by increasing the number of words they hear in their earliest years. • U.S. Dep. of Education Investing in Innovation Fund (i3) — In February of 2014, the Providence Schools and Read to Learn Providence received a $3 million from the U.S. Department of Education to strengthen family engagement and create opportunities for families and school professionals to learn together. • Providence PROMISE — In the summer of 2014, Mayor Taveras partnered with Brown University, Providence College, Johnson &Wales,and RISD to expand the portfolio of nocost, high-quality suer learning experiences available to youth in Providence. The initiative was designed to stem summer learning loss and expose Providence high school students to a university environment. • Carnegie's Opportunity by Design Challenge — In July of2014,the Carnegie Corporation of New York awarded the Providence Schools a $3 million grant to support the development of two small, innovative high schools. Healthy Communities In August 2012, Mayor Taveras signed an executive order establishing the Healthy Communities Office. The office is charged with improving the health and wellness ofProvidence residents by improving nutrition and increasing access to healthy foods, promoting physical activity and recreation, and preventing substance abuse among young people, among other efforts. The Healthy Communities Office, along with other City departments, has worked to make Providence a healthier community for all. Healthy Eating: the HCO has worked in partnership with the Providence Schools and the Parks and Recreation department to expand participation in federally funded meals programs, with a special emphasis in underutilized programs like Afterschool Meals and Snacks, as well as Summer Meals. The HCO has also spearheaded the city's Lots of Hope urban agriculture project, with three urban farms in place or in process on city land and two more being planned. Active Living: the HCO led three Cyclovia events in FY14,and a total of six events in the summers of 2013 and 2014 that spanned between Fiscal Years 2013,2014 and 2015. These events shut down roads in four different city neighborhoods to make way for bicycling, pedestrian and other exercise. The office has also organized a series of free Zumba classes in city parks and community centers. • Healthy Schools: The HCO helped lead the rewriting of the Providence Schools' wellness policy, which was approved by the School Board in the fall of2013. Since then the office has coordinated an effort to develop a toolkit for teachers and administrators to assist them in bringing the policy to life every day in city schools and classrooms. The office also organized a series of substance abuse presentations for students and some for parents at a range of schools. Substance Abuse Prevention: The HCO organized two prescription drug take back days in FY14. We worked to conduct a range of educational programs to reduce youth use of alcohol, tobacco and other drugs. We developed a policy approved by the Board ofPark Commissioners in May 2014 to make city parks tobacco-free, as well as developing other policy proposals for the city and state level aimed to reduce and prevent youth substance use. Sustainability Providence Composts: With a generous grant from the Rhode Island Foundation and the Local Sustainability Matching Fund, the City ofProvidence launched Providence Composts! in partnership with the Southside Community Land Trust(SCLT). With the goals of providing residents a simple, affordable, and sustainable way to divert solid waste, building healthy soils in Providence, and extending the life ofthe landfill, the City and SCLT worked with neighborhood organizations and farms to establish three neighborhood composting locations. The 2013 pilot diverted over two tons offood scraps from the landfill. Building on the initial success, the pilot has continued in 2014 and expanded to three locations serving more than 100 families. xi • Big Green Can for Business: In June 2013, the Department of Public Works,the Office of Sustainability and the Hope Street Merchants Association launched the `Big Green Can for Business' recycling pilot program, an effort to expand the City's residential recycling initiative to the small business community. Groups of small businesses located on residential routes and with similar recyclable materials to a resident are eligible to participate. Each businesses receives a recycling bin and City-sponsored weekly collection service fora onetime fee of $50. The City is now looking to partner with other business districts to expand the Big Green Can for Business and to develop strategies to support small business recycling by encouraging the use of shared recycling dumpsters. • Earth Day Spring Cleaning: In Apri12014, Mayor Taveras has hosted an annual event: a citywide celebration of Earth Day, dedicated to cleaning up green spaces and neighborhoods. This event brought 2,200 volunteers to nearly 40 events in Providences parks in collaboration with neighborhood organizations and community groups across the city. Volunteers spend the morning cleaning up a park, planting trees, or beautifying a neighborhood. There are also educational activities for children and families at several parks. • Textile Recycling Collection Program: The Department of Public Works and the Office of Sustainability have partnered with Goodwill Industries to collect used textiles for recycling and reuse at ten locations around the city. The donation collection bins help those who receive the clothing as well as divert clothing and other textiles from the city's trash and recycling collection program. Goodwill pays the City $100 per ton oftextiles collected. The City also may count the tonnage toward our state waste diversion goal. The proceeds fund recreation programs in Providence parks. • Lots of Hope: Lots of Hope is the City ofProvidence's urban agriculture initiative, which transforms unused city property into productive urban farms for use by limited resource and socially disadvantaged urban farmers. Lots of Hope seeks to improve access to locally grown produce in Providence markets, expand the City's portfolio of green space, and contribute to improvements in air quality, public health, and local property values. To date, the city has three farms in operation through the program. xii Bike Providence: In November 2013, Mayor Taveras and the Providence Bicycle and Pedestrian Advisory Commission unveiled the Bzke Providence master plan, a blueprint for identifying, prioritizing and introducing bicycle facilities throughout the city. Building off of the partial infrastructure built as a result ofthe Providence Bicycle Network plan, Bike Providence calls for the establishment of a comprehensive network of bicycle lanes and parking facilities. In addition to engineering solutions, the plan also highlights the importance of the rest ofthe Five Es: Education, encouragement, enforcement, and evaluation. The plan is intended to be a living document that is open to public comment and can be modified from time to time. • Mashapaug Pond Green Infrastructure Project: The City ofProvidence received a $75,000 value technical assistance grant from the U.S. Environmental Protection Agency to construct a green infrastructure project at J.T, Owen's Park near Mashapaug Pond. The system uses vegetation and soil to clean the polluted rainwater before it flows into the pond. The project will capture over 2 million gallons of polluted stormwater run-off each year and prevent over six pounds of phosphorous from being released into the pond system. Renewable Energy Feasibility Study: With a grant from Commerce RI,the City is conducting a feasibility study to set priorities for investments in renewable energy development, while also creating initiatives that will help develop and maintain funding streams to expand the City's long term sustainability initiatives. The first phase ofthe study currently underway is assessing twenty city-owned properties for both the technical and financial viability for deploying solar photovoltaic panels. Energy Efficiency in Public Properties: Since 2010,the City has completed lighting retrofits, gas conversions and other energy efficiency and conservation measures at 24 ofthe 41 school buildings, and 30 additional City-owned and operated buildings. In FY 2012, Providence's total energy use (electric, oil and gas) was down 15%from the previous three-year average use. The investments in 191ighting retrofits in school buildings have saved an average of $231,000 per year, and reduced carbon pollution the equivalent of planting more than 33,000 trees. Significant opportunities for energy efficiency projects still remain on City-owned properties, in buildings as well as streetlights. Debt Administration Outstanding government- and business-type activity bonds at June 30, 2014 totaled $531,794,000.(Note 7 of this report represents more detailed information about the City's debt position.) The City has the following bond ratings: Moody's Investor Services — Baal Standard and Poors — BBB Fitch — BB Long-Term Financial Planning part ofthe annual budget process, the Finance and Planning Departments present afive-year As Capital Improvement Plan. This plan identifies costs and financing methods for those capital projects the City expects to fund over the next five years. The 2013-2017 Fiscal Year Capital Improvement Plan projects needs through FY2016. The plan provides for the needs ofthe general government and addresses issues such as infrastructure, major equipment replacement, school facilities, public safety, recreation, and public lands and parks. Acknowledgment The preparation ofthis report could not have been accomplished without the dedication and hard work ofthe Finance, Planning &Development,Policy and Communications professionals who work for the City of Providence. I would like to express my appreciation and gratitude to all of the staff members who assisted and contributed to its preparation. I also appreciate the assistance and dedication ofthe audit team at Marcum LLP. Finally, I would like to thank Mayor Angel Taveras and the Providence City Council for their steady and responsible stewardship of all aspects of City government. Respec ly Submitted, Lawrence J. Mancini Acting Director of Administration/Finance Director xiv Executive Administration Organizational Chart The People of Providence Mayor City Solicitor Chief of Staff School Superintendent Communications Director Public Safety Commissioner Police Department Director of Operations Director of Administration Director of Economic Development Deputy Chief of Staff 1 Deputy Chief of Staff 2 Policy Director Public Works Department Finance Department Planning and Development Department Government Relations Community Relations Department Office of Sustainability Fire Department Parks Department Tax Assessor Office PEDP Office Human Services Neighborhood Services Office Healthy Communities Office Providence Emergency Management Recreation Department Tax Collector Office Providence Redevelopment Agency Canvassers Senior Services Office Public Property Department Human Resources Department Licenses and Vital Statistics Department Purchasing Department Information Technology Department Inspections and Standards Department City Controller Office Art, Culture + Tourism Department Advance Team Recorder of Deeds Water Supply Board Workforce Solutions Boards and Commissions Human Relations Commission xv Telecomm Department City Officials As of June 30,2014 Mayor Angel Taveras City Council Ward 1 —Seth Yurdin Ward 2 —Samuel D, Zurier Ward 3 —Kevin Jackson Wai•d 4 —Nicholas A. Narducci Ward 5 —Michael A. Solomon Ward 6 —Michael J. Correia Ward 7 — Jolui J. Igliozzi Ward 8 —Wilbur W. Jennings, Jr Ward 9 —Carmen Castillo Ward 10 —Luis A. Aponte Ward ll — Davian Sanchez Ward 12 —Terrence M. Hassett Ward 13 —Brian Principe Ward 14 —David A. Salvatore Ward 15 —Sabina Matos Department Directors General Manager of Water Supply Chief of Fire Department Chief ofPolice Depai~tinent Chief of Staff City Clerk City Controller City Solicitor City Treasurer Du•ector of Administ~•ation Director of Arts, Culture, and Tourism Director of Emergency Management Director ofFinance Director ofInformation Technology Director of Inspections and Standards Director of Operations Director of Personnel Director of Plaiming and Development Director of Public Works Director of Telecommunications Internal Auditor Recorder of Deeds Registrar of Vital Statistics Superintendent ofParks and Recreation Superintendent of Schools Tax Assessor Tax Collector Traffic Engineer xvi Richard A. Caruolo Clarence A. Cunha Col. Hugh T, Clements, Jr Gonzalo A. Cuervo Lori L. Hagen, Second Deputy Clerk J. Michael D'Antuono, CPA Jeffrey M.Padwa,Esq James J. Lombardi, III Lawrence J. Mancini, Acting Lynne A, McCormack Col, Peter T, Gaynor (ret) Lawrence J. Mancini James A. Silveria Jeffrey L. Lykins, RA Alan R. Sepe Sybil F, Bailey Ruben Flores-Marzan William C. Bombard, P.E,, Acting William B, Trinque Matthew M. Clarkin, Jr Jolm A, Murphy, Acting Serena A. Conley Robert F, McMahon Dr. Susan F. Lusi David L. Quinn John A. Murphy William C. Bombard,P.E. ♦a Government Finance Officers Association Certificate of Achievement for excellence in Financial Reporting Presented to City of Providence Rhode Island For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30,2013 ~~~~ ~~'' Execrrtive Director/CEO xvii CITY OF PROVIDENCE Financial Section ■ ■ ■ ■ Report ofIndependent Auditors Management's Discussion and Analysis Basic Financial Statements Supplementary Infot~rnation REPORT OF INDEPENDENT AUDITORS To the Honorable Mayor and Members of the City Council Providence, Rhode Island Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Providence, Rhode Island, as of and for the year ended June 30, 2014, and the related notes to the financial statements which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Providence, Rhode Island, as of June 30, 2014, 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. Marcum LLP n 155 South Main Street n Suite 100 n Providence, Rhode Island 02903 n Phone 401.457.6700 n Fax 401.457.6701 n www.marcumllp.com Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, budgetary comparison information, Schedules of Funding Progress, Funding Status, Changes in Net Pension Liability and Related Ratios, Contributions and Investment Returns on Pages 3–11 and pages 58-69, respectively, 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Providence, Rhode Island’s basic financial statements. The introductory section and the accompanying financial information listed as supplemental schedules in the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining fund financial statements and capital assets schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America, In our opinion, the information is fairly stated in all material respects in relation to the financial statements taken as a whole. The introductory section and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 30, 2014, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Providence, Rhode Island’s internal control over financial reporting and compliance. Providence, Rhode Island December 30, 2014 2 CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 This Managements Discussion and Analysis of the City of Providence, Rhode Island's Basic Financial Statements provides a narrative overview and analysis of the financial activities of the City for the fiscal year ended June 30, 2014. Financial Highlights —Primary Government Government —Wide Highlights Net Position —The liabilities of the City's governmental activities exceeded its assets for the fiscal year ending June 30, 2014 by $142.9 million (presented as "total net position"). Of this amount, a negative of $341.9 million was reported as "unrestricted". The net investment in capital assets was $199 million. The assets of the City's business-type activities exceed its liabilities by $268.8 million. Of this amount, $225.5 million represents the City's business-type activities net investment in capital assets. Chai2ge in Net Position —The City's total net position increased by $16.8 million in fiscal year 2014. Net position of governmental activities increased by $6 million, while net position of business-type activities increased by $10.8 million. Fund Highlights Govermnental Funds —Fund Balances — As of June 30, 2014, the City's governmental funds reported a combined ending fund balance of$71.0 million, a $20.4 million decrease from the prior year. Ofthe total fund balance reported, a negative $8.7 million represents "unassigned fund balance". Long-Term Obligations The City's total long-term obligations related to its government activities had a net decrease of $17.2 million during the current fiscal year. The total long-term obligations of the City's proprietary activities decreased $0.5 million during the current fiscal year. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Providence's basic financial statements. The City's basic financials statements include three components: 1) government —wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains additional supplementary information (budget schedules) and other supplementary information (combining financial statements), These components are described in this next section of this analysis. Basic Financial Statements The basic financial statements include two types of statements that present different views of the City's financial information. These statements are the Government-Wide and the Fund Financial statements. These financial statements are accompanied by Notes to the financial Statements, which provide detailed information about financial statement items. CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Government-Wide Financial Statements The government-wide financial statements provide a broad view of the city's operations in a manner similar to a business operating in the private sector. The statements provide short-term and long-term information about the City's financial position, which assists in assessing the City's economic condition at the end of the fiscal year. These are prepared using the flow of economic resources measurement focus and the accrual basis of accounting. This basically means they follow methods that are similar to those used by most businesses. They take into account all revenues and expenses connected with the fiscal year even if cash involved has not been received or paid. The government-wide financial statements include two statements: ■ The Statement of Net Position presents all of the government's assets and liabilities, with the difference between the two reported as "net position." Over time, increases or decreases in the City's net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement ofActivities presents information showing how the government's net position changed during the fiscal year. All changes in net position are reported, as soon as, the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will not result in cash flows until future fiscal periods (such as, uncollected taxes and earned, but unused vacation leave). This statement also presents a comparison between direct expenses and program revenues for each function ofthe City. Both of the above financial statements have separate sections for two different types of the City's programs or activities. These activities are defined below: Governmental Activities —The activities in this section are supported mostly by tax revenues and intergovernmental revenues (federal and state grants). Most services normally associated with City government fall into this category, including the executive, legislative and judicial, financial administration, human resources, public safety, building inspections, public works, recreation, parks, schools, public property, planning, other general government,judgment and claims, retirement costs, debt service, and other employee benefits, ■ Business-Type Activities —These functions normally are intended to recover all or a significant portion of their costs through user fees and charges to external users of goods and services. The City's business-type activities include the operations of the Water Supply Board and The Providence Public Building Authority. The City does not have any discretely presented component units. 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. Like other local Governments, the City uses fund accounting to ensure and demonstrate compliance with finance-regulated legal requirements. The fund financial statements focus on individual parts of the City government, reporting the City's operations in more detail than the government-wide statements. All of the funds of the City can be divided into three categories. It is important to note that these fund categories use different accounting approaches and should be interpreted differently. The three categories offunds are described below: 4 CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Gover~n~nental Fund Financial Statements —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 as 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 recourses. They also focus on the balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the government's near-term financing requirements. This approach is known as using the flow of current financial resources measurement focus and the modified accrual basis of accounting. These statements provide a detailed, short-term view of the City's finances that assists 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 the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-side financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and the governmental activities. These reconciliations are presented on the page immediately following each governmental fund financial statement. The City has four governmental funds considered to be major funds for financial statement presentation. That is, each major fund is presented in a separate column in the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and changes in fund balances. The City's four major governmental funds are comprised of the following:(1)the General Fund, (2) the School Fund, (3) the School Grant Fund, and (4) the Capital Projects Fund. All nonmajor governmental funds are presented in single column. The basic governmental fund financial statements can be found immediately following the government-wide statements. 2. Proprietary Fund Financial Statements —These funds are used to show activities that operate more like those of commercial enterprises. Because these funds charge fees for services provided to outside customers, including local governments, which are known as enterprise funds. Proprietary funds provide the same type of information as the government-wide financial statement, only in more detail. Like the government-wide financial statements, proprietary fund financial statements use the accrual basis of accounting. There is no reconciliation needed between the government-wide financial statements for business-type activities and proprietary fund financial statements. The CiTy has two major enterprise funds: The Water Supply Board and the Providence Public Buildings Authority. Financial statements for the Providence Public Buildings Authority may be obtained from the City of Providence Finance Department. The Internal Service Fund is maintained to account for the self-insured health claims and potential legal claims of the City. The basic proprietary fund financial statements can be found immediately following the governmental fund financial statements. CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 3. Fiduciary Fund Financial Statements —These funds are used to account for resources held for the benefit of parties outside the City government. Fiduciary funds are not reflected in the governmentwide financial statements because the resources of these funds are not available to support the City's own programs. The accounting used for fiduciary funds is similar to that used for proprietary funds. They use the accrual basis of accounting. The City's fiduciary funds are the Employee Retirement Fund, various Private-Purpose Trust Funds, and Agency Funds. The fiduciary financial statements can be found immediately following the proprietary fund financial statements. 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 basis financial statements. The notes to the financial statements can be found immediately following the fiduciary fund financial statements. Required Supplementary Information The basic financial statements are followed by a section of required supplementary information. This section includes budgetary comparison schedules for the general and school funds —the only governmental funds for which legal budgets are adopted annually. In fiscal year 2014, there were no significant modifications to the budgets originally adopted for each fund. Other Supplementary Information Combining Financial Statements and Schedules Combining financial statements are presented for nonmajor governmental funds and combining schedules are presented by individual grant within the school department. These are presented following the required supplementary information. The total columns of these combining financial statements and schedules are presented in the applicable fund financial statement. CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Government-Wide Financial Analysis Net Position As earlier noted, net position may serve as a useful indicator of the government's financial position over time. The City's combined net position (government and business-type activities) totaled $125.9 million at the end of 2014, compared to $112.4 million at the end last year. The largest portion of the City's net position, $424.5 million, reflect its investment in capital assets, like land, buildings, equipment, and infrastructure (roads, bridges, and other immovable assets) less any outstanding related debt used to acquire that asset. The City uses these capital assets to provide services to citizens; consequentially, these assets are not available for future spending. Although the City's investments in its capital assets is reported net ofrelated debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets can not be used to liquidate these liabilities. June 30, 2014 June 30,2013 Governmental Business-type Activities Activities Current and other assets Capital assets Total Assets $ Deferred Outflows of Resources 363 Current liabilities Long-term liabilities Total Liabilities 225,188 876,450 1,101,638 Deferred Inflows of Resources Net Position: Invested in capital assets, net of related debt Restricted Unrestricted Total Net position 258,026 $ 700,262 958,288 - 199,002 $ (341,989) (142,987) $ 60,725 299,811 360,536 - Total $ 318,751 1,000,073 1,318,824 $ 363 13,421 75,559 88,980 238,609 952,009 1,190,618 2,709 2,709 225,544 424,546 36,627 6,676 268,847 Governmental Business-type Activities Activities 36,627 (335,313) $ 125,860 275,678 685,985 961,663 $ - $ 64,006 295,297 359,303 Total $ 339,684 981,282 1,320,966 - - 220,182 887,794 1,107,976 22,256 78,322 100,578 242,438 966,116 1,208,554 117,449 217,210 334,659 (263,762) (146,313) $ 35,112 35,112 6,403 (257,359) 258,725 $ 112,412 Restricted net position of $36.6 million primarily represent water• restricted funds that are subject to external resh•ictions on how they may be used. Internally imposed designations of resources are not presented as resh~icted net position. CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2014 Changes in Net Position The City's net position increased by $6 million for governmental activities and increased by $10.8 million for business-type activities. General fund revenues increased due to the success of increased tax collections and higher than budgeted departmental revenues, while expenditures for healthcare and pension costs came in higher than the budgeted amounts. Business-type activities increased due to large commitment to the replacement of infrastructure included in water rates in FY2014. Approximately 47.5% of the City's total governmental revenues were generated from taxes and payments in lieu of taxes. 34.6% resulted from grants and contributions, including Federal Aid. Charges for various goods and services provided 12.9% of total revenues, while .other revenues and investment and rental income accounted for 4.9% of total revenues, respectively. The City's expenses cover a range of services. The largest expenses were for school, public safety, retirement costs, and employee benefits. Revenues from business-type activities in fiscal year 2014 exceeded expenses by $11.4 million. The Business-type activities reported an increase in revenue of 3.1%, while expense increased 5.5% over the prior year. June 30, 2014 BusinessGovernmental type Activities Activities Revenues: Program revenues: Charges for service Operating grants and contributions Capital grants and contributions General revenues: Property taxes Grants not resh•icted for a specific purpose Miscellaneous Unrestricted investment earnings Total revenues Total - 358,243 18,158 18,871 1 753,743 3,304 101,904 358,243 18,158 18,871 3,305 855,647 351,605 19,296 18,047 84 748,620 36,036 49,261 169,742 4,381 23,965 2,131 20,825 417,987 18,901 19,984 19,322 56,271 838,806 32,662 58,429 165,773 4,264 21,889 1,903 20,415 395,994 24,297 30,796 747,765 19,322 56,271 91,041 Change in net position 5,978 10,863 16,841 257,984 109,019 36,036 49,261 169,742 4,381 23,965 2,131 20,825 402,539 18,901 19,984 Net position- beginning (148,965) $ 15,448 (142,987) $ 268,847 $ 125,860 Total 98,334 $ 96,214 $ 194,548 261,254 261,254 852 852 97,506 $ 97,938 $ 195,444 260,964 260,964 662 662 Expenses: Executive, legislative and judicial Finance Public safety Builiding inspection Public works Recreation Public lands and parks Education Community development Interest on long-term debt Economic development Water Total expenses Net position- ending June 30, 2013 BusinessGovernmental type Activities Activities 19,396 52,553 86,371 32,662 58,429 165,773 4,264 21,889 1,903 20,415 410,416 24,297 30,796 19,396 52,553 842,793 (7,802) 13,038 5,236 (138,511) 245,687 107,176 756,422 $ 243 2,100 99,409 351,605 19,296 18,290 2,184 848,029 14,422 (146,313) $ 258,725 $ 112,412 CITY OF PROVIDENCE,R~IODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2014 Business-Type Activities The business-type activities increased the City's net position by $10.8 million. This resulted primarily from a $10 million increase in net position of the Wate1• Supply Board, an increase of net position of $1.0 million by the Providence Public Building Authority, and a decrease of $340 thousand by the school lunch program. Financial Analysis of the City's Individual Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. Governmental Funds The focus of the City's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end ofthe fiscal year. The general fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the general fund was a negative $8.7 million, an increase of 1.1 million from $9.8 million the prior year, The increase in fund balance is due to increased tax collections and higher than budgeted departmental revenues. As a measure of the general funds' liquidity, it may be useful to compare both unassigned fund balance and total fund balance. School G~°ants-Fund Balance —The school grant funds account for federal and state grants received and expended by the school system. The fiscal year 2014 school grants fund balance is reported at $2.4 million, a $.38 million decrease from fiscal year 2013. The inclusion of all state aid in fisca12014 was included in the School's general fund and excluded from the school grants fund. School Fund —The school fund ended the year with a $0 fund balance in accordance with City charter regulations. The expenditures were $336.8 million as compared to $337.9 million in the prior year. The inclusion of all state aid in fiscal 2014 was included in the School's general fund and excluded in the school grants fund. Capital Projects Fund-Fzrnd Balance —The capital projects fund accounts for resources to be used for the acquisition or construction of capital assets for housing and community improvement activities in the City, other than those financed by proprietary funds. The fiscal year 2014 capital projects fund balance is $15.6 million. The $23.9 million decrease from fiscal year 2013 is attributable most notably to capital outlays related to the $40 Million Road Bond Paving Initiative. Proprietary Funds The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. As discussed in the business-type activities above, the City's proprietary net position increased by $10.8 million as a result of operations in the individual enterprise funds. This resulted primarily from a $10 million increase in net position of the Water Supply Board, an increase of net position of $1.0 million by the Providence Public Building Authority, and a $340 thousand decrease in the school lunch program. D CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2014 General Fund Budgetary Highlights The general fund incurred an uncombined surplus in FY 2014 of $1.0 million. This will increase the cumulative uncombined general fund balance to a negative $16.9 million. The GASB 54 requirement for combining funds shows a cumulative general fund balance as a negative $8,6 million. Total general fund revenues and transfers for the fiscal year were $452.5 million and total general fund expenditures and transfers for the fiscal year were $451.4 million. Further details of favorable and unfavorable variances of revenue and expense items can be found in the Required Supplementary Information on pages 58 to 64 of the Comprehensive Annual Financial Report. Capital Asset and Debt Administration Capital Assets (Note 5 to the Basic Financial Statements) June 30, 2014 Land Improvements Building and Improvements Machinery and Equipment 18,682 18,682 168,433 201,186 369,619 20,106 335 46,768 21,918 Total 68,686 $ 68,725 Business-Type Activities $ 21,958 Governmental Activities $ Total $ 46,767 Business-type Activities $ Land $ Governmental Activities June 30, 2013 18,682 18,682 144,398 181,904 326,302 20,441 16,704 1,026 17,730 103,693 102,817 348,775 347,703 10,041 357,744 22,529 47,609 70,138 27,595 61,726 89,321 700,262 299,811 1,000,073 685,985 295,297 981,282 $ $ 10,041 Construction in Progress 102,817 $ 338,734 $ Leased Assets $ 103,693 $ Infrastructure The City's investment in capital assets for its governmental activities as of June 30, 2014 amounts to $1,104 million, net of accumulated depreciation of $403 million, leaving a net book value of $700 million. This investment in capital assets included land, buildings, improvements, equipment, infrastructure and construction in progress. Infrastructure assets are items that are normally immovable and of value only to the City, such as roads, bridges, streets and sidewalks, drainage systems, lighting systems, and similar items. 10 CITY OF PROVIDENCE,RHODE ISLAND MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2014 Debt Administration June 30, 2014 $ 105,661 134,068 65,934 6,170 6,170 9,450 9,450 30,506 30,506 35,127 35,127 2,474 2,474 2,777 2,777 198,450 $ PPBA Debt $ Total 333,343 333,343 407,612 606,062 218,949 144,021 78,087 363,919 363,919 442,006 660,955 $ Capital Notes Payable Notes Payable 74,269 105,661 $ 59,799 Tax Increment Obligations 99,501 $ $ 99,501 Total Businesstype Activities Governmental Activities $ Revenue Bonds Business-type Activities $ General Obligation Bonds $ Governmental Activities June 30, 2013 The authority of the City to incur debt is governed by federal and state laws, which restrict the amounts and purposes for which a municipality can incur debt. General obligation bonds are backed by the full faith and credit of the City, including the City's power to levy additional taxes to ensure repayment of the debt. Accordingly, all general obligation debt currently outstanding was approved by a vote ofthe City Council. The City's total outstanding notes and bonds decreased by $54.9 million during the current fiscal year. The 2004 State legislative session authorized the City to issue variable rate debt and to participate in interest rate swaps. The City is developing policies that will set guidelines and procedures and define permitted instruments. It will set participant requirements and limitations on exposure, as well as ongoing management and reporting requirements. The City of Providence maintains the following ratings from Wall Street's credit agencies for general obligation debt: a Baal rating from Moody's Investors Service, a BBB rating from Standard and Poor and a BBB rating from Fitch. The City of Providence continues to perform long-term strategic planning in a proactive attempt to control costs: examples of these costs are health insurance, pension costs, education, salaries and benefits and debt service. The City has negotiated with all of its unions to increase employee contributions for health insurance. Additional information on the City's long-term debt obligations can be found in Notes 7 and 8 to the Financial Statements. Requests for Information This financial report is designed to provide a general overview of the City of Providence's finances for all of the City ofProvidence's citizens, taxpayers, customers, and investors and creditors. This financial report seeks to demonstrate the City's accountability for the money it receives. Questions concerning any of the information provided in this report or requests for additional information should be addressed to: City of Providence, Finance Department,Providence City Hall, Providence, RI 02903. 11 CITY OF PROVIDENCE BASIC FINANCIAL STA TEMENTS A-1 CITY OF PROVIDENCE Stafement of Net Position June 30, 2014(in thousands) Business-Type Activities 96,429 29,581 24,326 39,669 26,789 27,137 27,147 7,943 6,961 1,037 12 18,055 Noncurrent assets Capital assets, nondepreciable Capital assets, depreciable, net Total noncurrenf assets TOTAL ASSETS DEFERRED OUTFLOWS OF RESOURCES Deferred charges on refunding Total deferred outflows of resources LIABILITIES: Current Liabilities: Warrants and accounts payable Payable to retirement plan Due to other governments Accrued liabilities Other Unearned revenue Amounts payable with current restricted assets Long term debt due within one year Total current liabilities 9,981 (20,405) 912 60,725 69,296 630,966 700,262 88,249 211,562 299,811 157,545 842,528 1,000,073 958,288 360,536 1,318,824 363 363 - 363 363 89,111 225,551 1,709 4,095 13,421 38,162 53,907 494 34,876 42 16,576 1,709 93,206 238,972 876,087 876,087 75,559 75,559 951,646 951,646 1,101,638 88,980 1,190,618 2,709 2,709 7,575 42 16,576 TOTAL LIABILITIES DEFERRED INFLOWS OF RESOURCES Unavailable revenue from impact fees 199,002 $ 123,566 27,147 37,524 6,961 24,326 40,706 26,789 12 18,055 9,981 3,684 318,751 20,405 2,772 258,026 30,587 53,907 494 34,876 Noncurrent liabilities: Due in more than one year Total noncurrent liabilities Net Position Net investment in capital assets Restricted for Water Quality Protection Restricted for debt service Unrestricted TOTAL NET POSITION Totals" $ ASSETS: Current Assets: Cash and cash equivalents Restricted cash and cash equivalents Investments Restricted investments Taxes receivable (net of allowance) Intergovernmental receivable Loan receivable (net of allowance) Restricted receivables Other receivable Charges for service receivable (net of allowance) Internal balances Other assets Total current assefs $ Governmental Activities (341,989) (142,987) $ * After internal receivables and payables have been eliminated SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 12 225,544 32,410 4,217 6,676 268,847 $ 424,546 32,410 4,217 (335,313) 125,860 A-2 CITY OF PROVIDENCE. RHODE ISLAND Statement of Activities For the Year Ended June 30, 2014(in thousands) Net(Expense) Revenue and Changes in Net Position Program Revenues Charges for Services Business-type Activities Governmental Activities Totai Expenses 252,226 8,292 $ $ 3,304 $ 260,964 $ General revenues Taxes: Property taxes Payments in lieu of taxes Grants and contributions not restricted to specific programs Investment income Miscellaneous Total general revenues Change in net position Net position-beginning Net position-ending SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 13 331,133 27,110 18,158 1 18,871 395,273 5,978 (148,965) (142,987) (379,094) 10,201 (389,295) 3,304 662 662 10,863 257,984 268,847 $ 195,444 330 9,905 (34) 10,201 330 9,905 (34) 10,201 3,304 $ $ $ 19,652 62,872 15,414 97,938 - 260,964 (35,838) 18,329 (157,641) (345) (23,449) (1,540) (20,504) (137,714) (10,609) (19,984) (389,295) - 51 $ 838 806 (35,838) 18,329 (157,641) (345) (23,449) (1,540) (20,504) (137,714) (10,609) (19,984) (389,295) 395 97,506 19,322 56,271 15,448 91,041 $ 198 67,590 12,050 4,036 516 196 321 12,599 $ $ $ 36,036 49,261 169,742 4,381 23,965 2,131 20,825 402,539 16,901 19,984 747,765 - $ Business-type acfivities: PPBA Water Supply Board Non-major School lunch program Total business-type activities Total primary government Capital Grants and Contributions - Functions/Programs Primary government: Governmental activities: Executive, legislative, and judicial Finance Public Safety Building inspection Public Works Recreation Public land and parks Education Community development Interest on long-term debt Total governmental activities Operating Grants and Contributions 331,133 27,110 18,158 663 18,871 395,935 16,841 109,019 125,860 B-1 CITY OF PROVIDENCE. RHODE ISLAND Balance Sheet- Governmental Funds June 30, 2014(in thousands) Major Funds 11,924 29,581 $ $ - 19,421 75 4,649 725 2 49 602 13,450 19 498 - 712 404 15,785 49,602 24,326 24,326 FUND BALANCES: Nonspendable Restricted Committed Unassigned TOTAL FUND BALANCES 132 548 $ $ $ $ 383 8,311 18,836 3,854 31,027 - - - 24,326 24,326 2,372 15,644 18,770 33,362 9,530 2,372 15,644 61,662 19,498 $ 92,689 3,620 260 18,770 51,378 9,530 (8,672) 71,006 - (8.672) (8,672) 49,602 $ 24,326 26,789 39,669 14,516 80,610 504 307,787 2,583 5,607 13 11,078 3,471 $ $ 8,295 91,792 29,581 29,668 30,148 53,908 19,997 78,240 494 212,455 2,868 7 $ 15,909 25,391 7 $ 3,800 4,490 53,901 9,103 45,119 481 116,894 $ $ 132,548 $ - 31,888 14,031 42,633 26,789 2,345 81 21,465 504 92,689 $ 24,326 DEFERRED INFLOWS OF RESOURCES Unavailable revenue -taxes inflows of resources TOTAL LIABILITIES AND FUND BALANCES Total Governmental Funds Other Non-major Governmental Funds Capital Projects $ 8,076 $ 32,701 $ 19,670 $ School Fund $ LIABILITIES AND FUND BALANCES: LIABILITIES; Warrants and accounts payable Accrued liabilities Other payabies Unearned revenues-other Due to other funds Due to other governments TOTAL LIABILITIES General Fund $ ASSETS: Cash and cash equivalents Investments Receivables, net: Taxes Loans Intergovernmental Other Due from other funds Other assets TOTAL ASSETS School Grants Fund 13 450 $ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore, are not reported in the funds. Net pension obligations and other post employment benefits Deferred charges Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds Deferzed revenues (net of an allowance for uncollectibles) are recorded in the funds, but are not deferred under the measurement focus employed in the Statement of Net Assets Net position of governmental activities (A-1) SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 14 700,262 (358,495) 363 (583,870) 27,747 $ (142,987) B-2 CITY OF PROVIDENCE, RHODE ISLAND Major Funds Statement of Revenues, Expenditures and Changes in Fund Balances-Governmental Funds For the Year Ended June 30, 2074(in thousands) Total Other Non-major 12,038 223,771 384 41,054 3 761 Education - Other departments Grants 282 348,919 39,570 OTHER FINANCING SOURCES(USES) Transfers in Transfers out TOTAL OTHER FINANCING SOURCES(USES) 23,341 42,363 20,110 326,500 348,919 124,377 (125,148) 45,161 21,118 770,076 (23,862) 2,734 (20,415) 129,617 (129,617) 1,449 (2,549) (60) 496 (1.262) (123,222) 125,148 (1,100) (60) (766) FUND BALANCES AT BEGINNING OF YEAR, (9,827) (8,672) $ $ 2,798 8 30,464 39,570 1,484 - - $ 23,341 1,000 24,623 125,997 (849) 1,155 $ 1,012 1,004 1,675 (124,897) NET CHANGE IN FUND BALANCES 11,090 44,540 161,866 4,096 18,852 2,004 21,415 9,203 4,233 388,489 14,668 14,668 - IXCESS(DEFICIENCY OF REVENUES OVER IXPEND/TURES 1,993 33,198 1,081 26 9,867 - Community development Noncurrent: Capital outlays Debt Service: Principal Interest and other costs TOTAL IXPENDITURES - - 758 330,449 88,042 306,232 4,358 6,066 14,514 749,661 - Recreation Public lands and parks Governmental - $ $ - $ 40,670 9,272 18,138 3,795 - Finance Building inspection Public works Funds Funds 177 211,556 10,009 44,514 151,999 4,096 18,852 710 20,411 9,203 4,233 Public safety FUND BALANCE AT END OF YEAR - $ Fund 330,449 78,593 35,110 563 6,066 96 450,877 Governmental - IXPENDITURES: Current: Executive, legislative, and judicial School Fund Capital Projects - Federal reimbursements revenue $ General REVENUES: Taxes Departmental and state grants and Investment and rental income Fines and forfeitures Other TOTAL REVENUES School Grants Fund (23,922) 1,968 (20,415) 1,988 39,566 59,694 91,421 2,372 $ 15,644 $ 61,662 384 SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 15 $ 71,006 '~~ CITY OF PROVIDENCE RHODE ISLAND Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds For the Year Ended June 30, 2074(in thousands) Net Change in Fund Balances -Total Governmental Fund(B-2) $ (20,415) Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. In the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period. 14,277 Governmental funds do not present revenues that are not available to pay current obligations. In contrast, such revenues are reported in the Statement of Activities when earned. 4,082 The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. 46,758 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 the governmental funds. Change in net position of Governmental Activities in the Statement of Activities(A-2) SEE NOTES TO THE BASIC FINANCIAL STATEMENTS (38,724) $ 5,978 C-1 CITY OF PROVIDENCE. RHODE ISLAND of Statement Net Position-Proprietary Funds June 30, 2014(in thousands) 3,529 7,943 receivables Receivables, investments 6,961 9,879 12 102 governments Receivables- 1,037 government 446,756 351 Inventories 880 32 50,846 Other assets Total current assets 472,372 5,019 27,137 27,147 7,943 6,961 9,981 12 1,037 446,756 351 880 32 528,237 $ Fund Lunch 17,673 Internal Service Totals $ 5,935 27,147 $ $ ASSETS: Current assets: Cash and cash equivalents Restricted cash Investments Restricted net Restricted other Due from primary Due from other funds Non-major School Program PPBA $ Water Supply Board Governmental Activities Funds Business-Type Activities-Enterprise 4,637 3,539 26,865 2,268 37,309 depreciation Less accumulated Total noncurrent assets Tofal assets 5,019 472,372 350,657 828,048 37,309 1,378 7,575 207 1,585 9,083 1,709 1,709 $ 431,570 85,487 468,533 501,744 5,385 507,129 431,570 3,008 225,544 32,410 225,544 32,410 4,217 6,676 268,847 FINANCIAL SEE NOTES TO THE BASIC 17 2,011 2,011 $ 2 709 4,217 158 4,375 37,309 557,028 2,709 4,507 262,461 37,309 - 70,174 5,385 75,559 919 8,389 28,001 29,947 49,899 3,008 $ investment Restricted 25,852 36,963 STATEMENTS revenue DEFERRED INFLOWS OF RESOURCES from impact fees 4,095 9,928 $ bonds, noncurrent Revenue TOTAL LIABILITIES Unavailable 2,801 9,083 Noncurrent liabilities: net Net OPEB obligation Total liabilities NET POSITION in capital assets Net for Water Quality Protection Restricted for debt service Unrestricted TOTAL NET POSITION 2,028 - 2,746 $ of LIABILITIES Current liabilities: Accounts payable and accrued liabilities Claims payable Due to other funds Other Amounts payable from restricted assets Current portion of long-term debt and capital leases, net Total current liabilities 536 536 - 536 536 refunding Deferred of Deferred Outflows Resources gain on Total Deferred Outflows Resources - Machinery buildings Buildings and improvements Improvements other than and equipment Construction in progress - 21,958 79,135 297,055 30,877 66,291 495,316 195,505 299,811 21,958 79,135 297,055 30,877 66,291 495,316 195,505 299,811 Land Noncurrent assets: Capital assets: G2 CITY OF PROVIDENCE, RHODE ISLAND Governmental Statement of Revenue, Expenses and Changes in Net Position-Proprietary Funds For the Year Ended June 30, 2014(in thousands) Business-Type Activities-Enterprise Funds on-mayor School Lunch Water Supply Program Totals PPBA Board 13,481 12,644 54,394 292 2,119 15,448 13,773 12,644 71,961 100,900 8,478 17,533 25,977 - 314 (1,877) (1,563) 348 (17,203) (16,855) NET INCOME(LOSS)BEFORE CONTRIBUTIONS 678 6,915 Change in net position NET POSITION, BEGINNING $ - 7,559 3,304 (34) 678 252,242 3,697 2,045 4,375 $ 2,011 $ - 662 {19,080) (18,418) (34) 10,219 262,461 100,900 - (34) - 3,304 Capital grants and contributions 2,591 100,900 - Investment NON-OPERATING REVENUES(EXPENSES): income Interest expense Total non-operating expenses $ 45,544 $ 15,448 $ 1,827 - 28,269 $ 14,328 15,414 - OPERATING INCOME(LOSS) NET POSITION, ENDING 62,872 - Administration Depreciation Total operating expenses 98,309 63,958 17,923 16,057 97,938 1,086 - OPERATING EXPENSES: Cost of sales and services Health claims Internal Service Fund 17,923 1,729 19,652 62,872 - $ OPERATING REVENUES: Charges for sales and services Lease receipts Other Total operating revenues Activities SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 18 10,863 257,984 $ 268,847 $ - C-3 CITY OF PROVIDENCE Governmental Statement of Cash Flows-Proprietary Funds For the Year Ended June 30, 2014(!n thousands) Business-Type Activities-Enterprise Funds 24,924 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets Interest paid on debt Proceeds from bond issuance Repayment of long-term debt and capital leases Capital grants Nef cash (used fort capital and related financing activities Net increase(decrease)in cash and cash equivalents $ 39,600 1,505 106,083 15,777 (55,341) (490) Internal Service Fund 100,403 $ $ Totals (103,100) (2,697) 66,029 (1,118) - 59 29 (1,059) (389) 1,338 (418) (1,118) 88 (1,448) 1,338 (17,158) (1.877) (4,115) (17,382) 74,597 (100,281) (22,549) (47,181) (350) 315 (7,482) 8,237 348 (35) 1,103 (21,273) (19,259) 74,597 (107,099) 3,304 - (69,730) - (7,832) 8,237 663 - 1,068 - 1,922 (7,596) 1,593 (4,081) (1,359) 31,160 25,269 1,936 58,365 5,996 $ 33,082 $ 17,673 $ 3,529 $ 54,284 $ 5,935 $ 27,147 33,082 $ 17,673 $ 3,529 $ 17,673 $ 3,529 $ 27,137 27,147 54,284 Cash and Cash Equivalents Beginning Cash and Cash Equivalents Unrestricted Restricted Total 1,146 14,165 (13,330) (476) Activities (418) (6,818) 3,304 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investment securities Sale of investment securities Investment income Net cash provided by(used for) investing activities 39,033 1,612 (1,045) - (40,966) (14) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers Due from (to) other funds Net cash provided by(used for) noncapital financing activ/fies Ending 65,904 PPBA $ CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers and other Cash received from intergovernmental sources Cash paid to vendors Cash paid to employees Net cash provided by(used fort operating activit(es $ Water Supply Board Non-major School Lunch Program $ $ 4,637 (CONTINUED) SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 19 C-3 CITY OF PROVIDENCE. RHODE ISLAND Statement of Cash Flows-Proprietary Funds For the Year Ended June 30, 2014(in thousands) 8,478 $ 17,533 $ (34) $ 1,118 20,994 1,642 1,505 $ $ 39,600 - 518 1,889 (2,200) 712 (1,015) 66,029 (2,697) (CONCLUDED) $ 712 24,924 $ 23,903 (234) (32) (103) (45) 292 25,977 12,644 52 1,118 12,644 52 3,012 (234) (32) Internal Service Totals Fund PPBA $ $ $ Reconciliation of Operating Income(Loss)to Net Cash Provided by(Used in) Operating Activities Operating income (loss) Adjustments to reconcile operating income to net cash provided by (used in) operating activities: Depreciation Change in allowance for doubttul accounts Transfer Changes is assets and liabilities: Receivables Inventories Other assets Due from other funds Accounts payable and accrued expenses Due io other funds Unearned revenue Net cash provided by(used in) operating activities Non-major School Program Lunch Water Supply Board Governmental Activities Funds Business-Type Activities-Enterprise SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 20 D-1 CITY OF PROVIDENCE. RHODE ISLAND Statement of Fiduciary Net Position-Fiduciary Funds June 30, 2014(in thousands) Private Employee Purpose Trust Retirement Funds Agency Fund Plan ASSETS Investments, at fair value: U.S. Government securities Corporate and foreign bonds Corporate equity securities Mutual funds Total investments $ 7,195 40,191 218,347 $ 265,733 1,682 1,682 2,450 Cash and cash equivalents 4 $ 1,281 Receivables: Loans receivable Other Total receivables 26,528 63,058 89,586 - Total assets 357,769 1,686 1,295 - 645 650 1,295 LIABILITIES Accounts payable Due to student groups Other payables Total liabilities NET ASSETS Held in Trust for Pension Benefits and other purposes 14 14 56 1 57 $ 357,712 $ $ 1,686 SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 21 D-2 CITY OF PROVIDENCE, RHODE ISLAND Statement of Changes in Fiduciary Net Position-Fiduciary Funds For the Year Ended June 30, 2014(in thousands) Employee Retirement Plan ADDITIONS: Contributions: Employer Employees Donations Total contributions $ Private Purpose Trust Funds 62,140 10,873 $ 73,013 Investment Earnings Net appreciation (depreciation) in the fair value of investments Interest Dividends Total investment earnings ~9 19 41,549 2,233 3,221 47,003 289 Total additions 120,016 308 DEDUCTIONS: Benefits Administrative expenses Total deductions 96,570 1,523 98,093 25 25 Change in net assets 21,923 283 Net position -beginning 335,789 1,403 357,712 $ 1,686 Net position -ending $ SEE NOTES TO THE BASIC FINANCIAL STATEMENTS 22 289 CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANTACCOUNTINGPOLICIES Reporting E~rtity The City of Providence, Rhode Island (the "City") was incorporated in 1832. The City covers 18.5 square miles located in southeastern New England, at the head of the Narragansett Bay on the Atlantic sea coast. The City is approximately 45 miles from Boston and approximately 3 1/2 hours from New York by automobile or rail. The City operates under aMayor-Council form of government. A Home Rule Charter was adopted in November 1980 and became fully effective on January 3, 1983. The Mayor is elected by the voters ofthe City to a four-year term. City Council members are also elected to four-year terms, which coincide with the term of the Mayor. Most department heads and other City officials are appointed by the Mayor. The City complies with generally accepted accounting principles (GAAP), including all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this Note. All dollar values disclosed herein are in thousands(000 omitted). In evaluating how to define the government for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the reporting entity was made by applying the criteria set forth in GASB Statement No. 61. Under GASB Statement No, 61, a legally separate entity is required to be included as a component unit if it is fiscally dependent upon the primary government and there is a financial benefit or burden relationship present. The primary government is financially accountable if it appoints the voting majority ofthe organization's governing board and (1) it is able to impose its will on that organization or(2)there is a potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A potential component unit has a financial benefit or burden relationship with the primary government if, for example, any one ofthe following conditions exists: a. The primary government is legally entitled to or can otherwise access the organization's resources. b. The primary government is legally obligated or has otherwise assumed the obligation to finance the deficits of, or provide financial support to, the organization, c. The primary government is obligated in some manner for the debt ofthe organization. The criterion has been considered and the blended component units discussed below are included in the City's t•eporting entity because ofthe significance of its operational or financial relationships with the City. brdividual Conrpo~rent Unit Disclosure The component unit provides services entirely or almost entirely to the City or otherwise exclusively or almost exclusively benefits the City, even though they do not provide services directly to it. The component unit has been reported as if it was part of the primary government through a method of inclusion known as blending, A description ofthe component unit, criteria for inclusion and its relationship with the City is as follows: Providence Public Buildings AuthoritX The Providence Public Buildings Authority ("PPBA") was created by an act of the Rhode Island General Assembly and was empowered by resolution of the Providence City Council on August 13, 1987, and by resolution ofthe Public Finance Board, created under Section 42-10.11 of the General Laws of Rhode Island, on February 12, 1988. Membership is comprised of S members appointed by the Mayor and approved by the City Council. The PPBA is presented as a blended enterprise fund. 23 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANT ACCOUNTING POLICIES(Co~tti~tue~l) Individual Component l~itit Disclosure (Contr~rued) Providence Public Buildings Authority (Continued) The purpose of the PPBA is to acquire, construct, maintain, renovate, repair and operate public facilities and public equipment through the use of public financing for the City. These activities are structured as financing leases between the PPBA and the City. The future payments to be received on these leases is presented as "Due from Primary Government" on the PPBA Statement of Net Position. These activities allow the PPBA to provide for the conduct of the executive, legislative and judicial functions of the government, The PPBA is obligated to pay the principal and interest on any financing solely fiom the rents, revenues and receipts derived under the lease agreements with the City or fi•om receipts on the disposition of the assets being financed. The PPBA's administrative expenses are paid on an annual basis by the lessee in the form of additional rent. Complete financial statements of the PPBA can be obtained through the City of Providence Finance Department, City Hall, Providence, Rhode Island 02903. The Providence Redevelopment A encY The Providence Redevelopment Agency ("PRA") was formed on December 20, 1946 pursuant to R.I.G.L. 45-31 (the Act) by a duly enacted resolution of the City Council of the City. Under the Act, the PRA constitutes a body corporate and politic, exercising public and essential government functions, and having a distinct legal existence from the City. As such, the PRA has the authority to acquire, develop as a building site, administer, sell and lease property, has the power• of eminent domain, and the power to issue bonds, notes and other evidence of indebtedness. The PRA does not have the power to levy taxes. The PRA was created to eliminate and prevent blighted and substandard areas and replace such areas through redevelopment ofwell-planned, integrated stable, safe and healthful neighborhoods. The Powers of the PRA are vested in eight members, including the Mayor of the City ex officio, five members appointed by the Mayor of the City and two members who are also members of the City Council, appointed by the City Council. All appointed members of the PRA must be resident electors of the City. The PRA is presented as a blended special revenue fund. Rece»tly Issued Accorr~rting Slrnrdards The City has implemented the following governmental accounting standards during fiscal year ended June 30, 2014: • GASB Statement No. 65 —Items Previously Reported as Assets and Liabilities, effective for the Corporation's fiscal year ending June 30, 2014. • GASB Statement No. 66 —Technical Corrections — an amendment of GASB Statements No. 10 and No. 62, effective for the Corporation's fiscal year ending June 30, 2014. • GASB Statement No. 67 —Financial Reporting of Pension Plans —and amendment of GASB Statement No. 25, effective for the Corporation's fiscal year ending June 30, 2014. • GASB Statement No. 70 —Accounting and Financial Reporting for Nonexchange Financial Guarantees, effective for the fiscal year ending June 30, 2014. The City will adopt the following new accounting pronouncements in future years: 24 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANTACCOUNTINGPOLICIES(Conti~rued) Rece~ttly Issued Accounting Sta~tdards (Co~ttinuerl) • GASB Statement No. 68 —Accounting and Financial Reporting for Pensions — an amendment of GASB Statement No. 27, effective for the Coj•poration's fiscal year ending June 30, 2015. • GASB Statement No. 69 — Government Combinations and Disposals of Government Operations, effective for• the fiscal year ending June 30, 2015. • GASB Statement No. 71 —Pension Transition for Contributions Made Subsequent to the Measurement Date — an amendment of GASB Statement No. 68, effective for the fiscal year ending June 30, 2015, The impact ofthese pronouncements on the City's financial statements has not been determined. Gover~nne~tt-Wide Fund Finmrci~~l Statements The Statement of Net position and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. For the most part, the effect of interfund activity has been removed from these statements. The statements distinguish between governmental and businesstype activities. Governmental activities generally are financed ttu~ough taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are financed in whole or in part by fees charged to external parties for goods or services. The statement of activities demonstrates the degree to which the du•ect expenses of a given function or segments are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and proprietary funds are reported as separate columns in the fund financial statements. Measureme~tt Foc[rs, Basis ofAccou~zti~tg, mrd Financial Stateme~rt Prese~rtatio~r The government-wide financial statements, proprietary and fiduciary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Agency funds are not involved in the measurement of results of opet•ations; therefore, measurement focus is not applicable to them. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year when levied for. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider• have been met. 25 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANTACCOUNTING POLICIES(Conti~rued) Measi~renrent Focus, Basis ofAccowrti~tg, a~zd Fi~ranc~al Statement Presentation (Continued) Governmental fund financial statements are reported using the "current financial resources" measurement focus and the modified accrual basis of accounting. Only curt•ent financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures are generally recorded when a liability is incurred as under accrual accounting, however, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due (matured). Property taxes when levied for, intergovernmental revenue when eligibility requirements are met, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual (measurable) and so have been recognized as revenues of the current fiscal period, if available. All other revenue items, primarily permits and fees, are considered to be measurable only when cash is received by the City. All proprietary funds utilize an "economic resources" measm•ement focus. The accounting objectives of this measurement focus are the determination of net income, financial position and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result fi•om providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the enterprise funds and the govermnent's internal service funds are charges to customers for sales and services. Operating expenses for proprietary funds, including both enterprise funds and internal service funds, include the cost of operations, maintenance, sales and service, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Revenues from charges for services of the Providence Water Supply Board are recognized on the accrual basis, net of estimated uncollectibles. Depending upon consumption, metered water sale customers are billed monthly, quarterly or annually for water usage. Large commercial customers and other local water suppliers are billed more fiequently. Fund financial statements of the reporting entity are organized into funds each of which is considered to be a separate accounting entity. Each fund is accounted for by providing a separate set of self-balancing accounts which constitute its assets, deferc•ed outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues, and expenditures/expenses. Funds are organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund ofthe City or meets the following criteria: a) b) Total assets and deferred outflow of resources, liabilities and deferred inflow of resources, revenues, or expenditures/expenses of that individual, governmental or enterprise fund are at least 10 percent of the corresponding total for all funds ofthat category or type, and Total assets and deferred outflow of resources, liabilities and deferred inflow of resources, revenues, or expenditures/expenses of the individual, governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. 2( (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANTACCOI7NTING POLICIES(Conti~uied) Measureme~rt Focus, Basis ofAccounti~rg, rrnd Fi~tmtcial Statement Presentation (Co~ttinued) The City reports the following major governmental funds: - The General Fund is the City's primary operating fund. It accounts for all financial resources of the general govermnent, except those required to be accounted for in another fund. - The School Fu»d accounts for operations of the Providence school system. Revenue is derived primarily from State and Federal Aid and transfers from the City. - The School Grants Fzmd accounts for federal, state, and private grants received and expended by the school system -The Capital P~~ojects Fund accounts for resources to be used for the acquisition or conshuction of capital assets for the housing and community improvement activities in the City. The City reports the following major proprietary funds: - The Wate~~ S2~pply Board accounts for the activities of the Providence Water Supply Board. - The Providence Parblic Baiildings AZ~thoi~iry accounts for the activities related to acquisition, construction and leasing of capital assets to the City. Additionally, the City reports the following fund types: - The Pension Trost Fzmd accounts for the activities of the City of Providence Employees Retirement System, which accumulates resources for pension benefit payments to qualified employees. - The Private-Panpose Ti~zrst Farnd is used to account for resources legally held in trust for the benefit of individuals, organizations or other' governments. - The Agency Fund accounts for• assets held by the City in a pw•ely custodial capacity. Since agency funds are custodial in nahue (i.e. assets equal liabilities), they do not involve the measurement of results of operations, - The Intej~nal Service Find is used by management to charge the costs of self-insurance and legal claims to individual funds, brterfi~~rd Receivables and Payables Activity between funds that is representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds." Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Pension Pln~r Accountnig Employee Retirement Plan The Employee Retirement Plan (Pension Trust Fund) is reported on the accrual basis of accounting. Employee conh•ibutions are recognized in the period in which the contributions are due. Employer contributions to the plan are recognized when due and the City has made a formal commitment to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of each plan. Administrative costs are financed tlu•ough investment earnings. Investments are reported at fau• value. Short-term investments are reported at cost, which approximates fair value. Securities traded on a national or international exchange are valued at the last reported sales price at current exchange rates, Investments that do not have an established market are reported at estimated fair value, based on value of underlying assets. 27 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANT ACCODNTING POLICIES(Contnrued) The net pension obligation, the cumulative difference between annual pension cost and the City's contributions to the plan since 1986, is calculated on an actuarial basis consistent with the requirements of Government Accounting Standards Board Statement No. 27. Expenditures are recognized when they are paid or are expected to be paid with current available resources. The net pension obligation is recorded as anon-current liability in the government-wide financial statements. Fundin P~olicX The City makes contributions at the discretion of management. Accornrtr~rg Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requu•es management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses and expenditures during the reporting period. Actual results could differ from those estimates. Property taxes The City's property tax is levied each year on July 1 based on the assessed property value, as of the prior December 31, for all real property, tangible property, equipment and motor vehicles located in the City. Assessed values of real property were established by the City Assessor's office at 100% of appraised market value based on 2012 State mandated statistical updated valuations less exemptions. Assessed values of tangible property and equipment and motor vehicles are determined annually at 100% of market value, and a $1,000 exemption on motor vehicle assessments. Payments on the gross levy are due in equal quarterly installments in July, October, January, and April. Property taxes attach as an enforceable lien on property when levied. Cash equivalents For purposes of the cash flow statement, the City considers certificates of deposits and highly liquid short-term investment funds with original maturities of three months or less, when purchased, to be cash equivalents, including amounts reported as restricted. brvest~ients Investments and pooled fixed income investments are stated at fair value, based on quoted market prices. btve~rtories and prepaid assets Proprietary fund inventory is stated at the lower of weighted average cost or market using the first-in, first-out method. Inventory consists primarily of materials and supplies. Inventory is not maintained in governmental funds, but is recorded as an expenditure at the time of purchase. Inventory on hand at year-end is not material. Any material payments to vendors that reflect costs applicable to future accounting periods are recorded as prepaid items in both government-wide and fund financial statements. 2g (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 I. SIGNIFICANTACCOUNTING POLICIES(Contl~t[red) Capita!Assels Capital assets, which include property, plant, equipment andmfi~ash•ucture assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements and in the proprietary fund financial statements. Capital assets are defined by the government as all computer equipment and assets with an initial, individual cost of more than a range of $5,000 to $100,000 and an estimated useful life in excess of two years. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated fau• value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Improvements are capitalized and depreciated over the remaining useful lives ofthe related capital asset, as applicable. Capital assets of the governmental activities are depreciated using the sn~aight-line method over the following estimated useful lives: Year Assets Buildings..................................................................... Building improvements................................................... Public domain infi~asnucture............................................. System infi•astructure...................................................... Vehicles...................................................................... Office equipment........................................................... Computer equipment...................................................... Machinery and equipment................................................ 5 20 45 30 7 5 15 Capital assets are reported as expenditures and no depreciation expense is reported in the governmental fund financial statements. Property, plant and equipment of the business-type activities and proprietary funds are depreciated using the straightline method over the following estimated useful lives: Water Supply Board Buildings, source of supply, structm•es, and improvements.............................................................. Improvements other than buildings...................................... Machinery and equipment................................................ 5 — 75 years 3 — 75 years 3 — 50 years Interest is capitalized on proprietary fund assets acquired with tax-exempt debt. The amount of interest capitalized is calculated by offsetting interest expense incurred from the date of the borrowing until completion of the project with interest earned on invested proceeds from project specific debt issued over the same period. Self-Insurance The City is self-insured in most areas of risk, subject to certain third-party "stop loss" coinsurance. Self-insured risks include general liability, property and casualty, workers' compensation, unemployment and employee health insurance claims. Claims incurred but not paid, including those which have not been reported, are accrued as longterm obligations in the government-wide and internal service fund financial statements. Obligations are paid out of the General Fund and the Internal Service Funds. 29 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANTACCOUNTINGPOLICIES (Co~rtirtried) Allowancefor Collectio~t Losses The allowance for possible loan losses is maintained at a level believed adequate by management to absorb potential losses for outstanding loans. Managements determination of the adequacy of the allowance is based on an evaluation ofthe portfolio, past loan loss experience and current economic conditions. All trade and property tax receivables for governmental and proprietary funds are reported net of an allowance for uncollectibles totaling $63,477 and $1,517 respectively. The majority of amounts relate to property taxes and water usage. Amounts determined to be uncollectible are based on the type and age of the related receivable and the ability ofthe debtor to pay. Compensated Absences Under• the terms of various contracts and policies, employees are granted vacation and sick leave based on length of service. The City's policy is to recognize the cost of vacation and sick leave in governmental funds when paid (matured). The liability for vacation and sick leave is recognized when earned in the government-wide and proprietary fund financial statements. For governmental activities the general fund is used to satisfy this liability as it becomes due, while each enterprise fund accounts for all its settlement of business-type liabilities for compensated absences. Long-tern Obligations In the government-wide and proprietary fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable statement of net position. Bond premiums and discounts, as well as issuance costs, are deferred and amoi~ized over the life of the bonds using the interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term ofthe related debt. In the fund financial statements, governmental fund types recognize bond proceeds, premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is 2•eported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Payments of bond principal are recognized as expenditures as it comes due. Deferred Outflows/Inflows ofResources In addition to assets, the statement of net position and/or balance sheet can report deferred outflows of resources. Deferred outflow of resources represents a consumption of net position that applies to a future period which will not be recognized as an outflow of resources (expense/expenditure) until that later date. At June 30, 2014 the City of Providence, Rhode Island had one item qualifying as a deferred outflow of resources; deferred charge on debt refunding reported in the government-wide statement of net position. The deferred charge on the refunding of $363 represents the unamortized balance of the difference between the carrying value of the refunded debt and its reacquisition price. In addition to liabilities, the statement of net position and/or balance sheet can report deferred inflows of resources. Deferred inflows of resources represent the acquisition of net position that applies to a future period and which will not be recognized as an inflow of resources (revenue) until a later date. At June 30, 2014 the City of Providence, Rhode Island had one item qualifying as a deferred inflow of resources in the governmental funds balance sheet. Unavailable tax revenue represents taxes receivables which are assessed on December 31, 2012 and prior and is not collected within 60 days of June 30, 2014. Net unavailable tax revenue included in the fund financial statements was $24,326 at June 30, 2014. This amount is deferred and will be recognized as an inflow of resources in the years) in which the amounts become available. 30 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 1. SIGNIFICANTACCOUNTINGPOLICIES(Continued) Fuird Equity and Net positio~r In the government-wide and proprietary fund financial statements, net position is classified in the following categories: Net i~rvestment i~t capital assets -This category groups all capital assets, including infrastructure, into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement ofthese assets reduce this category. Restricted Net positioTr -This category represents the net position of the City, which are resh'icted by outside parties or enabling legislation. Unrestricted Netposition or Deficits -This categozy represents the net position ofthe City, which do not meet the definition of "restricted" or "invested in capital assets, net of related debt". Deficits require future funding. Governmental fund equity is classified as fund balance. Fund balance is classified into one of the following five categories: non-spendable, resfiicted, committed, assigned, or unassigned. These categories are defined below. (a) Non-spendable Fund Balance -includes amounts that cannot be spent because they are either (a) not in spendable form or (b) legally or contractually ~•equired to be maintained intact. "Not in spendable form" includes items that are not expected to be converted to cash. (b) Reshicted Fund Balance —includes amounts that are restricted to specific purposes. Fund balance is reported as restricted when constraints placed in the use of resources are either externally imposed by creditors, grantors, conh•ibutors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. (c) Committed Fund Balance —includes amounts that can be used only for the specific purposes pursuant to consh•aints imposed by formal action of the government's highest level of decision-making authority. Those committed amounts cannot be used for any other purpose unless the government removes or changes the specified use by taking the same type of action it employed to previously commit those amounts usually tlu~ough city ordinance. The City Council is the highest level of decision-making authority for the City of Providence and utilizes City Ordinances to vote on the City's budget and resolutions proposed by the various committees. (d) Assigned Fund Balance —includes amounts that are constrained by the governments intent to be used for specific purposes, but are neither restricted nor committed. The intent should be expressed by (a) the governing body itself or•(b)a body(a budget or finance committee) or official to which the governing body has delegated the authority to assign amounts to be used for specific purposes. The City ofProvidence does not currently have a spending policy regarding the order in which restricted, committed, assigned, and unassigned fund balances are spent when more than one amount is available for the expenditures incurred. Accordingly, by default, the City is following the policy prescribed by GASB Statement No. 54 which specifies that fund balance is reduced fu•st by committed, then by assigned, then by unassigned when expenditures are incurred for purposes for which any unrestricted fund balance could be used. (e) Unassigned Fund Balance — is the residual classification for the General Fund. This classification represents fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific pw•poses within the General Fund. 31 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 2. RECONCILIATION OF GOVERNMENTAL ACTIVITIES AND GOVERNMENTAL FITND FINANCIAL STATEMENTS The governmental fund balance sheet includes a reconciliation between fund balances —total governmental funds and net position —governmental activities as reported in the government-wide statement of net position. One element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds." The details of this $583,870 difference are as follows: Bonds and notes payable Leases payable Capital notes payable Accrued interest payable Compensated absences Workers' compensation Unspent PPBA bond proceeds Claims and judgments $ (501,288) (9,663) (20,843) (4,727) (35,270) (4,297) 19,171 (26,953) $ (583,870) Net adjustment to reduce fund balance -total governmental funds to arrive at net assets -governmental activities The governmental fund statement of revenues, expenditures, and changes in fund balances includes reconciliation between net changes in fund balances —total governmental funds and changes in net position of governmental activities as reported in the government-wide statement of activities. One element of that reconciliation explains that "Governmental funds report capital outlays as expenditures; however, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense." The details of this $14,277 difference is as follows: Capital outlay -governmental funds $ Depreciation expense 36,121 (21,844) Net adjustment to decrease net changes in fund balance -total governmental funds to arrive at changes in net position of governmental activities $ 14,277 Another element of that reconciliation states that "the issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is fu•st issued, whereas these amounts are deferred and amortized in the statement of activities." The details of this $46,758 difference are as follows; 32 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 2. RECONCILIATION OF GOVERNMENTAL ACTIVITIES AND GOVERNMENTAL FUND FINANCIAL STATEMENTS(Co~rt~nued) (69,705) $ Bond and note proceeds Principal repayments: General obligation bonds Capital leases Capital notes Notes payable Net adjustment to increase net changes in fund balances -total governmental funds to arrive at changes in net position of governmental activities 111,539 3,491 1,130 303 46,758 $ Another element of that reconciliation states that "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." The details of this $38,724 difference are as follows: Compensated absences Accrued interest Amortization of bond premium Claims and judgments Net pension obligation Other post employment benefits Net adjustment to decrease net changes in fund balance -total governmental funds to arrive at changes in net position of governmental activities $ (1,636) (104) (359) 768 (2,515) (34,878) $ (38,724) 3. CASH, CASH EQ UIVALENTS AND INVESTMENTS Deposits The City's custodial credit risk policy is in accordance with RI General Laws, Chapter 35-10.1, depository institutions holding deposits of the State, its agencies or governmental subdivisions of the State, shall at a minimum, insure or pledge eligible collateral equal to 100% of time deposits with maturities greater than sixty days. Any of these institutions which do not meet minimum capital standards prescribed by federal regulators will insure or pledge eligible collateral equal to 100% of deposits, regardless of maturities. Investf~ze~rts The City policy for• pension investments is under the oversight ofthe Board ofInvestment Commissioners, The Board conh•acts with an investment advisory fvm and approves any new investment vehicles presented by the consultant. The Board follows all applicable state statutes and Section 17-189 ofthe City Ordinance, which states, "The Board of Investment Commissioners is authorized and empowered to execute the disposition and investment ofthe funds which are within its control in any securities and investments as would be acquired by prudent persons of discretion and intelligence in these matters, who are seeking a reasonable income and the preservation of their capital." 33 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 3. CASH, CASHEQIIIVALENTSAND INVESTMENTS(Conti~tued) Interest Rate Risk The City does not have a formal investment policy for its pension funds that limits investment maturities as a means of managing its exposure to fair value losses arising fi~om increasing interest rates. The City's policy is to limit its exposure to fair value losses arising from changes in interest rates by structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity, and investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools. Concentrations The City's policy is to maintain a diversified portfolio to minimize the risk of loss resulting from over concentration of assets in a specific issuer. Custodial Credit Risk Deposits This is the risk that, in the event of failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. As of June 30, 2014 $39,657 of the city's bank balance of $180,239 was uninsured and uncollateralized.(Amounts do not include PPBA,as such amounts cannot be separated.) Investments This is the risk that in the event of the failure of the counte~party (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment oz• collateral securities that are in the possession of another party. The City does not have a custodial credit risk policy. 34 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 3. CASH, CASHEQUIVALENTSANDINVESTMENTS(Contiiruerl) Cash and investments of the City consist of the following at June 30,2014: 100,164 17,673 33,082 3,529 154,448 $ Cash and Cash Equivalents Deposits with financial institutions PPBA deposits with financial institutions Water Supply Board deposits with financial institutions School Lunch Program deposits with financial institutions Total cash and cash equivalents Investments Non-major Governmental Funds Mutual Funds 29,581 29,581 Private Purpose Trust Funds Mutua( Funds 1,682 PPBA Investments Guaranteed Investment Contracts 7,943 7,943 Water Supply Board Equity Mutual Funds 6,961 * Pension Trust Funds U.S. Government Securities Corporate and Foreign Bonds Common and Preferred Stocks 7,195 40,191 218,347 265,733 311,900 Total cash, cash equivalents and investments 466,348 $ Total investments These investments are uninsured and unregistered, with securities held b}' the counterparty, or by its trust department or agent, in the City's name. 35 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 3. CASH, CASH EQUIVALENTS AND INVESTMENTS(Cmrtinued) Cash, cash equivalents, and investments are classified in the accompanying financial statement as follows: $ Cash and Cash Equivalents Statement of Net Position Cash and cash equivalents Restricted cash and cash equivalents Fiduciary Funds Cash and cash equivalents 123,566 27,147 150,713 3,735 3,735 $ Total cash and cash equivalents $ Investments Statement of Net Position Inveshnents Restricted investments Fiduciary Funds Investments 154,448 37,524 6,961 44,485 267,415 267,415 $ Total investments 311,900 brterest Rate Risk This is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair• value to changes in market interest rates. Information about the exposure of the entity's debt type investments to this risk using the segmented time distribution model is as follows: TOTAL 55,329 $ 36 - $ $ 5,839 20,015 25,854 $ 1,356 10,164 7,754 $ $ - $ $ 7,195 40,191 7,943 $ Fair Value Type ofInvestment U.S. Government Securities Corporate and Foreign Bonds PPBA-Guaranteed Investment Investment Maturities (in Years) Over l-5 6-10 Less Than 10 Years 1 Year Years Years 19,274 $ 10,012 189 10,201 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 3. CASH, CASH EQUIVALENTS AND INVESTMENTS(Co~ttiituerl) Credit Risk Generally, credit risk is the risk that an issuer of a debt type investment will not fulfill its obligation to the holder of the investment. This is measured by assignment of a rating of a nationally recognized rating organization. U.S. government securities or obligations explicitly guaranteed by the U.S. government are not considered to have credit risk exposure. Presented below is the minimum rating as required for each debt type investment: PPBAAverage Corporate and Foreign Rating Bonds AAA AA+ $ Guaranteed Investment Contracts 3,523 1,962 AA 915 AA- 1,589 A3 A+ A 1,300 4,332 ABBB+ 3,436 3,314 BBB 3,ll9 BBBBB+ 3,073 645 321 BB BBB+ $ 272 7,482 189 875 261 41 B BCCG Unrated $ 11,485 40,191 37 $ 7,943 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 4. INTERFUND RECEIVABLES,PAYAI3LESAND TRANSFERS As of June 30, 2014, inter-fund receivables and payables that resulted from various inter-fund t~~ansactions were as follows (in thousands): Due from Due to Other Funds Other Funds 45,119 $ 42,633 $ General Fund 8,295 15,785 School Fund 725 5,607 School Grants 2 383 Capital Projects 18,836 21,465 Non-Major Governmental Funds 1,378 Water Supply Board 351 207 School Lunch Program 28,001 26,865 Internal Service Fund 107,826 107,826 $ Total $ Amounts owed among funds result principally from timing of payments to the City's general fund of $42.6 million, payments to the City's health insurance and legal claims fund of $26,9 million, and amounts owed to the school fund for current year expenditures of $15.8 million. All of these amounts were paid subsequent to year-end. All other amounts owed are expected to be paid within one year. Inter-fund transfers during tha year ended June 30, 2014 were as follows (in thousands): Transfers to Transfers from Other Funds Other Funds 124,897 $ 1,675 $ General Fund 849 125,997 School Fund 2,549 1,449 School Grants 60 Capital projects 1,262 496 Non-Major Governmental Funds 129,617 Total $ 129,617 $ The most significant transfer in fiscal year 2014 was the appropriated operating subsidy from the City's general fund to the school fund. 38 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 CAPITAL ASSETS Capital asset activity for the year ended June 30, 2014 was as follows:(in thousands): $ $ Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Infrastructure Building -leases Total accumulated depreciation 67,390 11,406 58,641 176,069 73,167 386,673 3,415 1,433 4,601 3,492 8,903 21,844 Total capital assets, being depreciated, net 611,622 22,909 Govermnental activities capital assets, net $ 685,985 $ Beginning Balance Increases $ 21,918 61,726 18,682 102,326 $ 40 26,792 74,388 270,994 30,450 375,832 4,820 26,061 427 31,308 Less accumulated depreciation for: Buildings Improvements other than buildings Machinery and equipment Total accumulated depreciation 48,421 108,385 26,055 182,861 6,847 4,679 1,118 12,644 Total capital assets, being depreciated, net 192,971 18,664 Business-type activities capital assets, net $ 295,297 39 $ 45,496 5,130 70,805 12,839 58,112 179,561 82,070 403,387 3,565 630,966 9,057 $ 700,262 5,130 $ Decreases/ Transfers $ 26,832 Capital assets, being depreciated: Buildings and improvements Improvements other than buildings Machinery and equipment Total capital assets being depreciated 193,812 58,265 78,218 283,254 420,804 1,034,353 40,909 40,909 73 - Business-type activities: Capital assets, not being depreciated: Land Construction in progress-City Other land improvements Total capital assets, not being depreciated 23,334 167 328 5,755 77 2,368 8,695 - 3,842 25,536 8,562 4,445 2,368 44,753 $ 46,767 425 22,104 69,296 - 190,137 33,057 75,411 278,886 420,804 998,295 1 5,491 5,492 - Capital assets, being depreciated: Buildings Improvements other than buildings Machinery and equipment Infrastructure Building -leases-PPBA Total capital assets being depreciated finding Balance - 425 425 - 46,768 5,491 22,104 74,363 73 - $ Decreased Transfers - Governmental activities: Capital assets, not being depreciated: Land Construction in progress-City Construction in progress-PPBA Total capital assets, not being depreciated Increases - Beginning Balance - 5. $ Ending Balance $ 21,958 47,609 18,682 88,249 79,135 297,055 30,877 407,067 55,268 113,064 27,173 195,505 73 211,562 40,982 $ 299,811 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 S. CAPITAL ASSETS(Conti~tued) The leased assets reported in the table above represent assets, principally buildings and related improvements, leased by the City from the Providence Public Building Authority. For the government-wide statements, the capital assets and related PPBA debt is presented principally in the governmental activities column and the related transactions are eliminated. Depreciation expense was charged to functions/programs of the primary government as follows: Executive, legislative and judicial Finance Public safety Public works Recreation Public lands and parks Other departments Education Total depreciation expense 6. $ $ 6 83 1,597 4,023 5 1,548 10,784 3,798 21,844 UNEARNED REVENUE Governmental funds report unearned revenue in connection with receivables for revenues that are not available to liquidate liabilities of the current period. Governmental funds and governmental activities report unearned revenue in connection with resources that have been received, but not yet earned. At year-end, the various components of unearned revenue reported in governmental funds and governmental activities were as follows: Unearned Revenue General Ftcnd: Advance collections Charges for services $ 2,735 6,368 9,103 Sclrood Grants Fund $ 2,583 Outer Non-Major Governmental Fu~rds $ 8,311 40 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 7. LONG-TERM OI~LIGATIONS Long-term liability activity for• the year ended June 30, 2014 was as follows: Beginning Balance Governmental activities Bonds payable: General obligation bonds Revenue bonds Special obligation tax increment Total bonds payable $ - $ 2,777 13,154 21,973 218,949 Notes payable Capital leases Capital notes Total bonds and notes payable Other Long-Term Liabilities; Claims and judgments Compensated absences Net pension obligation Other post employment liability Total other long-term liabilities Governmental activity long-term liabilities before PPBA reclassification PPBA Debt Government activity long-term liabilities 105,661 $ 65,934 9,450 181,045 Decreases Increases $ Due Within One Year Ending Balance 6,160 $ 6,135 3,280 15,575 99,501 $ 59,799 6,170 165,470 7,745 4,778 3,445 15,968 303 3,491 1,130 20,499 2,474 9,663 20,843 198,450 92 2,848 1,185 20,093 3,021 2,924 5,945 39,639 35,270 154,399 204,096 433,404 39,639 3,527 43,166 42,660 33,634 151,884 169,218 397,396 4,560 2,515 34,878 41,953 616,345 41,953 26,444 631,854 63,259 363,919 69,705 100,280 333,344 25,852 126,724 $ 965,198 $ 89,111 980,264 $ 111,658 $ Internal service funds predominantly serve the governmental funds. Accordingly, long-term liabilities for them are included as part of the above totals for governmental activities. 41 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 7. LONG-TERM OBLIGATIONS(Cmztlnued) Beginning Balance Business-type activities: Bonds payable: Revenue bonds -water PPBA -CITY Total bonds PPBA- net bond premium PPBA -PAP Loans* Other post employment liability Business-type activity long-term liabilities $ Increases Ending Balance Decreases Due Within One Year 69,705 69,705 3,818 $ 100,280 104,098 1,788 4,892 404 6,276 136,915 4,053 19,113 1,332 117,802 5,385 - 123,615 537,076 30,554 (457,422) (26,459 584,762 $ 75,929 $ Less PPBA Eliminations Business-type activity long-term liabilities $ 74,269 $ 333,344 407,613 4,095 25,852 29,947 78,087 363,919 $ 442,006 79,654 $ * -Amount represents internal loans between the City and the PPBA and is therefore eliminated on the entitywide statements. The $124,078 difference between business type PPBA eliminations and governmental PPBA eliminations consists of $117,802 ofPAP loans between the City and PPBA and $6,276 ofnet bond premium. The Water Supply Board long-teem debt is general obligation debt of the City. However, because it is the intent ofthe City to have the Board meet the debt service requirements of this debt, such amounts are recorded in the enterprise funds of the City. Similarly, debt of the PPBA that will be met by the Water Supply Board has been recorded as the Water Supply Board's debt. 42 (Continued) 607 4,095 CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30,2014 LONG-TERM OBLIGATIONS(Continued) 7. Debt service requirements for bonds and notes payable at June 30,2014 were as follows: $ $ $ $ 18,301 16,370 57,137 60,496 58,944 57,127 215,212 22,717 147,052 10,620 1,013 11,633 (186) 30,775 2019 2020-2024 31,203 2025-2029 2030-2034 131,479 108,111 (1,002) (1,061) 47,473 20,721 44,247 177,950 127,771 12,85'7 (915) 2,117 14,059 1,595 (91) 24 1,528 149,396 552,693 124,573 457,917 24,823 94,776 $ - (4,316) $ 74,269 - 45,221 13,237 - 14,635 (193) - (189) 333,344 - 47,430 46,742 (4,316) 680,144 47,745 15,922 407,613 Less amount representing the PPBA 18,105 17,162 181,330 Total $ 31,006 $ 30,640 2017 2018 $ 2016 (307) (372) 2035-2039 2040-2044 29,947 498,814 $ 457,917 - - - 124,573 $ 333,344 - - 124,335 $ $ $ 20,098 102,323 $ - $ $ 40,398 15,763 Business-Type Activities ARRA Principal Interest Principal Forgiveness 2015 64,148 86,560 - 222,227 42,165 39,016 152,018 - 56,757 165,470 65,532 27,629 112,378 $ 11,633 39,831 23,711 21,983 40,643 40,757 158,075 - 1,013 41,821 41,428 41,351 13,903 $ $ $ 10,620 - 2035-2039 2040-2044 44,729 41,950 Total Interest 12,697 11,387 39,640 - 2030-2034 37,775 4,983 17,497 6,954 19,113 18,111 63,194 26,343 27,448 27,134 - 2025-2029 6,195 5,604 16,098 15,085 $ 13,509 13,128 45,697 22,720 19,145 25,852 $ 12,950 2018 2019 2020-2024 23,582 $ 2017 7,613 6,898 $ 2016 15,969 15,822 Principal Total Interest - $ 2015 Principal Total Interest Total Government Entity-Wide PPBA Governmental Activities Principal 43 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 LONG-TERM OBLIGATIONS(Continued) Bonds Payable $ $ Retirements 485 595 2,570 2,360 840 3,280 1,830 1,589 50 401 1,575 15,575 $ $ Additions- $ Balance June 30,2013 9,435 1,890 50,950 19,065 6,905 9,450 30,545 9,612 3,045 803 39,345 181,045 - Maturity Date 1/15/2026 8/15/2015 4/1/2029 7/15/2019 7/15/2019 6/1/2016 6/30/2026 10/15/2018 6/30/2021 6/30/2015 1/15/2033 $ $ $ $ $ $ $ $ $ $ $ $ December 2001- TaYable Judgement Bond Revenue Refunding Bonds 2005 Series A GO Refunding Bonds 2004 Series A GO Refunding Bonds 2004 Series B Special Obligation Bnnds Series E Refunding Bonds 2010 Series A PRA Table Lease Revenue Bonds 2010 Series 1 PRA Taxable Lease Revenue Bond 2010 Series 1 PRA Tamable Lease Revenue Bond 2010 Series 2 GO Road Bond 2013 Series A Total governmental activities bonds payable Interest Amount Date of Rate Issued Issue 13,000 3.00-6.84% 12/1/2007 6,825 4.75-5375% 8/1/2000 67,315 3.0-5.0% 3/1/2005 2.5-5.5% 9/16/2004 34,395 9/16/2004 12,135 2.37-5.41% 24,465 4-5% 6/1/2006 4.625-5% 30,545 12/21/2010 4.15% 12,600 8/27/2010 4.90% 3,145 6/30/20ll 3.30% 6/30/2010 1,605 5.00% 39,345 1/15/2013 $ Total interest expense paid on general long-term liabilities for the year ended June 30, 2014 was approximately $20,000. Balance June 30,2014 8,950 1,295 48,380 16,705 6,065 6,170 28,715 8,023 2,995 402 X7,770 165,470 44 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 7. LONG-TERM OBLIGATIONS(Continued) 442,006 $ Additions 69,705 69,705 Retirements 3,818 1,220 6,235 9,390 17,220 4,595 19,745 19,820 2,475 3,000 1,120 3,030 1,105 273 1,480 2,312 1,810 5,450 104,098 Capital Notes Date of Issue 5/1/2003 $ 5/1/2006 $ Amount Issued 20,820 6,858 Interest Rate Maturity Date 1.70 - 4.25% 5.34 - 5.56% 2024 2036 Balance June 30,2013 $ 15,115 6,858 $ 21,973 $ 45 - Balance June 30,2014 Retirement Additions $ 1,130 $ - 13,985 6,858 $ 1,130 $ 20,843 (Continued) Balance June 30, 2014 74,269 1,230 1,385 1,210 45,955 61,245 9,135 60,845 8,052 $ 12/1/2014 12/1/2017 12/1/2018 12/1/2019 12/1/2021 12/1/2023 12/1/2023 5/1/2027 5/15/2028 5/15/2021 5/15/2028 6/30/2021 6/30/2014 6/15/2025 12/1/2018 6/15/2026 5/15/2029 5/15/2029 5/15/2024 $ 7,500 4.70-7.10% 21,225 5.375-6.50% 28,270 3.85-5.10% 39,750 4.10-5.5% 9,995 3.25-5.125% 2.5-5.0% 31,000 31,000 3.0-5.0% 4.0-5.0% 60,000 75,000 3.75-5.5% 16,470 3.75-5.5% 3.5-5.0% 75,000 6.25% 12,000 5.01% 1,000 1.92% 22,320 4.25% 19,500 35,000 3.0-5.875% 2.51% 12,280 2.51% 9,665 3.0-5.0% 69,705 Balance June 30,2013 78,087 1,220 6,235 10,620 18,605 5,805 19,745 19,820 48,430 64,245 10,255 63,875 9,157 273 17,880 14,044 31,765 12,280 9,665 $ Maturity Date $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 6/1/199 12/1/1996 5/1/1998 7/1/1999 12/1/2001 3/1/2003 6/1/2003 9/1/2006 11/7/2007 11/7/2007 12/20/2007 6/30/2009 6/30/2009 12/30/2009 11/15/2010 4/28/2011 12/7/2010 12/7/2010 11/19/2013 $ Revenue Bonds 1995 Series B 1996 Series B 1998 Series A 1999 Series A 2001 Series A 2003 Series A 2003 Series B 2006 Series A 2007 Series A 2007 Series B 2007 Series C 2009 Series A 2009 Series B 2009 Series A QSCB 2010 Series 1 2011 Series A 2010 Series A QSCB 2010 Series B QSCB 2013 Series A Total business-type activities bonds payable Interest Rate Amount Issued $ Date of Issue $ Bonds Payable(continued) 16,400 11,732 29,955 12,280 9,665 64,255 407,613 CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 7. LONG-TERM OBLIGATIONS(Conti~rued) Notes Payable At June 30, 2014, the City had notes outstanding relating to planning and development activities. These notes included $2,474 of Section 108 loans payable ttu•ough 2032 with interest rates ranging from .2% to 7.18%; $303 was paid in 2014. PPBA Elii~ti~tatio~rs The Providence Public Building Authority(PPBA)issues long-term bonds for the acquisition and construction of capital assets. Upon acquisition or completion, these capital assets are leased to the City. Because the PPBA is included as a blended component unit in the accompanying statements, the capital assets and related debt are reported as part of the governmental activities and business-type activities columns in the government-wide statements as presented below. The respective amounts in the PPBA statements have been eliminated in the business-type activities column in order to properly reflect the debt and assets. The annual requn~ements to amortize the debt payable at June 30, 2013 are as follows: 2015 2016 2017 2018 2019 2020-2024 2025-2029 City Principal Interest 25,852 $ 16,098 $ 15,085 26,343 27,448 13,903 27,134 12,697 27,629 11,387 39,640 112,378 15,763 86,560 $ 333,344 $ 124,573 The City and the Water Supply Board entered into lease agt•eements with the PPBA relating to various capital projects. In connection with these lease agreements, the PPBA issued revenue bonds that will be repaid by the Water Board with the $0.01 per hundred gallons Water Quality Protection Charge. The City repays the PPBA as lease payments from general revenues. The PPBA debt to be repaid by the proprietary funds has been shown as debt in those funds' financial statements. PPBA debt to be repaid by the City is presented as debt of the governmental activities in the governmentwide statement of net position. Debt Lintit Except as explained below, under Rhode Island law, the City may not, without special statutory authorization, incur any debt which would increase its aggregate indebtedness not otherwise excepted by law to an amount greater than 3% of the taxable property of the City. Deducted fi•om the computation of aggregate indebtedness is the amount of any borrowing in anticipation of taxes authorized by law and the amount of any borrowing in anticipation of taxes authorized by law and the amount of any sinking funds maintained by the City. The current outstanding debt of the City subject to the 3% debt limit is $39.1 million and the current 3% debt limit of the City is $323.2 million based on taxable property as of December 31, 2013, of approximately $10.8 billion, leaving a remaining borrowing capacity of approximately $284.1 million. The State of Rhode Island General Assembly (General Assembly) may, by special act permit the City to incur indebtedness outside the 3%debt limit. Bonds issued either within the 3%debt limit or by special legislation adopted by the General Assembly authorizing the City to incur debt are subject to referendum by the electors of the City. On June 30, 2014, the total outstanding debt of the City issued outside the 3% debt limit was $60.4 million, excluding water bonds and sewer bonds which are deemed self-supporting. 46 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 7. LONG-TERM OBLIGATIONS(Conti~uied) Debt Limit (Coirti~ruerl) In addition to debt authorized within the 3% debt limit and debt authorized by special act of the General Assembly, Rhode Island General Laws Section 45-12-11 authorizes the State Du~ector of Administration, upon petition by a municipality, to authorize such municipality to incur indebtedness in excess of the 3% debt limit whenever the Director shall determine that the sums appropriated by the municipality or its funds available are insufficient to pay the necessary expenses of the municipality. The City has not requested the State Du•ector of Administration to authorize indebtedness ofthe City under Section 45-12-11. Bo»d Anticipatio~llVotes The City had no bond anticipation h•ansactions for the fiscal year ended June 30, 2014. 8. LEASE COMMITMENT Property and equipment carried at approximately $98,000 with approximately $97,000 in accumulated depreciation, in the governmental activities is being acquired under capital lease arrangements. The City is obligated under various capital and operating leases to make the following aggregate annual lease payments (in thousands): Lease expenditures approximated $2,030 for fiscal year ended June 30, 2014, Capital Operating 2,030 $ 2,030 2,030 2015 2016 2017 2018 $ 6,090 Less: Interest $ Present Value of minimum payments 3,136 2,369 2,412 2,458 10,375 696 9,679 Sale-LeasebrtcJr During fiscal year 2010, the City entered into asale-leaseback h•ansaction involving certain streetlights within the City. The h~ansaction resulted in the City receiving $14.5 million in payments and committing to a future stream of lease payments. 9. RESTRICTED ASSETS AND RELATED LIABILITIES The State of Rhode Island enacted the Public Drinking Water Protection Act of 1987 (the Act) that empowers suppliers of public drinking water to levy a surcharge (the Water• Quality Protection Surcharge) of $0.01 per hundred gallons of water for all customers. The Act was amended numerous times and effective July 1, 2002, the surcharge increased to $0.0292 per hundred gallons of water for all customers. In addition to the increase, the Water Supply Board will retain 36.1% of the surcharge in its Water Quality Protection fund, remit 57% to the State Water Resources Board and retain 6.9%for general operations. 47 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 9. RESTRICTED ASSETS AND RELATED LIABILITIES(Continued) The resri~icted assets ar•e pooled with the cash and cash equivalents and investments of other funds maintained by the City. The earnings from pooled cash and cash equivalents and investments are allocated in proportion to each funds' balance. 10. FUND EQUITY The following non-major fund had a deficit as of June 30, 2014: Governmental: FederaTfunds...................................................................$ 49 This deficit is expected to be eliminated through transfers from the City's general fund and from other revenue sources, As stated in Note 1, Fund Balance may be classified as one of five categories: Nonspendable, Restricted, Committed, Assigned, or Unassigned. Committed Fund Balance represents that amount of fund balance which can only be used for specific pw•poses pursuant to constraints imposed by formal action of the District's highest level of decision-making authority. The City's Council is considered to be the highest level of decision making authority, In accordance with the City Charter, the Council votes on the annual budget and on any resolutions proposed by the Committees. The passage of the Council's annual budget and proposed resolutions may result in the commihnent offund balance. The City of Pt•ovidence does not cutrently have a spending policy regarding the order in which reshicted, committed, assigned, and unassigned fund balances are spent when more than one amount is available for the expenditures incurred. Accordingly, by default, the City is following the policy prescribed by GASB Statement No. 54 which specifies that fund balance is reduced fu•st by committed, then by assigned, then by unassigned when expenditures are incurred for purposes for which any unresriicted fund balance could be used. In all situations, the City considers restricted fund balance to be used first when available and when expenditures are incurred that meet the requirements ofthe restricted fund balance. At June 30, 2014 Non-Spendable Fund Balance consisted ofthe following: Loans receivable Trust agreements At June 30, 2014 Restricted Fund Balance consisted ofthe following: Public lands and parks Law enforcement and fit•e prevention Education Federal programs Trust agreements Various future capital projects Total Reshicted Fund Balance At June 30, 2014 Committed Fund Balance consisted ofthe following: Committed foi• various capital projects Committed for public lands and parks Total Committed Fund Balance $ 18,482 2gg 18,770 $ 1,423 908 2,372 14,512 16,519 15,644 51,378 $ 9,080 450 9,530 $ The Water Supply Board has restricted net position of $18 million at June 30, 2014. This represents the excess of restricted assets over liabilities payable fi•om restricted assets unexpended water quality protection revenue. 48 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 11. GASB — 67FINANCIAL REPORTING FOR PENSION PLANS The City has adopted GASB Statement No, 67, Financial Reporting for Pension Plans- an amendment of GASB Statement No. 25. The Statement enhances the City's footnote disclosures and expands the Required Supplemental Infarmation (RSI) data with new schedules. It was issued to improve financial reporting by state and local government pension plans. The following provides information required to be disclosed under Statement No.67 that is not discussed as part ofthe information disclosed in Note 12. The City contributes to two defined benefit pension plans -the Employees' Retvement System ofthe City of Providence (ERS), a single employer plan; and the Employees' Retirement System ofthe State of Rhode Island (the System), a costsharing multiple employer plan. The ERS is presented in the accompanying financial statements as a pension trust fund. A separate financial statement is not issued. The System is not included in the basic financial statements. (a) Employees'Retiref~ient System ofthe City ofProvide~tce(ERS) • Plan Description and Contribution Information Membership ofthe ERS plan consisted ofthe following at July 1, 2013,the date ofthe latest actuarial valuation: Inactive plan members or beneficiaries currently receiving benefits Inactive employees entitled to but not yet receiving benefits Active employees ............................................................... Total 3,094 407 2.998 6.499 Plan Description ERS is asingle-employer defined benefit pension plan that covers most management employees of the City, except school teachers. The Plan provides retirement, disability and death benefits to plan members and their beneficiaries. Cost-of-living adjustments(COLA)are provided to retirees and beneficiaries at varying percentages ranging from 0% to 3%. Benefits are paid at varying amounts not to exceed 100% of final compensation for Class A (city) employees or 100% of final compensation for Class B at age 60 (police and fn•e). Final compensation is the average of the highest tlu•ee years of base compensation including longevity pay earned by a member during his total service as an employee. ERS is governed by an Employee Retirement Board provided by the Providence Home Rule Charter. The ERS consists of elected officials, management and employee representation and provides for establishing rules and regulations and is responsible for the adminish•ation and operation of the city employee retirement system. The Board has the discretion and authority to interpret the Plan and to determine the eligibility and benefits of Participants and beneficiaries pursuant to the provisions of the Plan. On all such matters, the decision of a majority of the then members of the Board shall govern and be binding upon the Employer, Participants, and beneficiaries. CO71f/'Illllt1011S Class A members and police officers are required to contribute 8% of their salary to the Plan. Class B members, other than police officers, are required to contribute 9.5% of their salary to the Plan. The Mayor and City Council contribute to the Plan at a rate of $350 per year. Additionally, the City shall contribute from time to time amounts sufficient with the contributions of elected officials to provide the special pensions granted to them. The City's contributions to the ERS for the years ended June 30, 2014,2013 and 2012 were $62,140, $58,145, and $48,454, respectively. 49 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 11. GASB — 67FINANCIAL REPORTING FOR PENSION PLANS(Contirar~ed) (a) Employees'Retirement System ofttre City ofProvidence(ERS)(Continued) bivestment Policy The City policy for pension investments is under the oversight of the Board of Investment Commissioners. The Board contracts with an investment advisory firm and approves any new investment vehicles presented by the consultant. The Board follows all applicable state statutes and Section 17-189 of the City Ordinance, which states, "The Board of Investment Commissioners is authorized and empowered to execute the disposition and investment of the funds which are within its control in any securities and investments as would be acquired by prudent persons of discretion and intelligence in these matters, who are seeking a reasonable income and the preservation of their capital." Target Allocation Asset Class Equities Fixed Income Cash and Cash Equivalents Total 79% 18% 3% 100% Net Pension Liability The components ofthe net pension liability ofthe Retirement System at June 30,2014 were as follows: Total fiduciary net position $ 1,230 Plan fiduciary net position $ 358 City's net position liability $ 873 Plan fiduciary net position as a percentage ofthe total pension liability 29.08% Additional information as ofthe latest actuarial valuation follows: Valuation Date Actuarial cost method 1-Jul-13 Individual entry age method Amortization cost method Approximate level percent of payroll-open Remaining amortization period Asset valuation method 27 years 5-year smoothed market value Actuarial assumptions: 8.25% 3.5%(formerly 3%) 3.50% No COLA for next 9 years, 3%thereafter Investment rate of return Inflation rate Projected salary increases Cost of living adjustments 50 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 ll. GASB — 67FINANCIAL REPORTING FOR PENSION PLANS(Continued) (a) Employees'Retiretstent Systefn ofthe C[ty ofProvidence(ERS)(Continued) Mortality rates for healthy retirees were based on RP-2000 Combined Healthy Mortality Table projected 21 years with Scale AA fi~om 2000 for Class A employees and RP-2000 Combined Healthy Blue Collar Mortality Table projected 21 years with Scale AA from 2000 for Class B employees. Disabled retiree mortality rates were based on RP-2000 Combined Healthy Mortality Table set forward 3 years. The long-term expected rate of return on pension plan investments was determined using abuilding-block system in which best~stimate ranges of expected future real rates of returns (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce 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 real rates of return for each major asset class included in the pension plan's target asset allocation as of June 30, 2014 are summarized in the following table: Long-Term Expected Real Rate of Return Asset Class 6.6% Domestic equity Core fixed income High yield fixed income Short-term governmental money market 2.2% 4.7% 1,8% Discount Rate: The discount rate used to measure the total pension liability was 8.25%. The projection of cash flows used to determine the discount rate assumed plan member contributions will be made at the current contribution rate and that the City ofProvidence's contributions will be made at 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 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 ofthe net pension liability to changes in the discount rate. The following presents the net pension liability of the Retirement System, calculated using the discount rate of 8.25%, as well as what the System's net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower(7.25%) or 1-percentage-point higher (9,25%)than the current rate: 1%Decrease (7.25%) Net pension liability $ 1,001,927 $ 51 Current Discount (8.25%) 1%Increase (9.25%) 872,577 $ 763,951 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 Il, GASB — 67FINANCIAL REPORTING FOR PENSIONPLANS(Conti~tued) (a) Employees'Retireme~~t System ofthe City ofProvide~7ce(ERS)(Continued) Fa~ntled Statais ofPlat The required supplementary information, which follows the notes to the financial statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing overtime relative to the actuarial accrued liability for benefits. Listed below are the details of the funding progress ofthe ERS with a valuation date of June 30, 2012, which is the most recent report available. Actuarial value of assets Actuarial accrued liability Unfunded (excess) actuarial accrued liability Funded ratio Annual covered payroll UAAL (excess) as a percentage of payroll $ $ $ $ 380,484 1,212,008 831,524 31.39% 139,893 594.40% AnnualPension Cost and Nel Pension Obligation (NPO) The City's annual pension cost and net pension obligation to ERS for the current and two preceding years were as follows: FY 2014 $ Annual required contribution Interest on NPO Amortization of NPO Annual pension cost Contributions made Increase in net pension obligation Net pension obligation, beginning of year Net pension obligation, end of year $ 12. 61,615 $ 12,530 (9,490) 64,655 (62,140) 2,515 151,884 154,399 $ 96.11% Percentage of annual pension cost contributed (b) FY 2013 58,145 $ 12,332 (9,926) 60,551 (58,145) 2,406 149,478 151,884 $ 96.03% FY 2012 58,929 11,229 (8,341) 61,817 (48,454) 13,363 136,115 149,478 78.38% Employees Retiremeirt System ofthe State ofRhode Island EMPLOYEE RETIREMENTSYSTEM(ERS) —DEFINED BENEFITPLAN Effective July 1, 2012, the State administered retirement system which covers local teachers and certain municipal employees was modified to include both defined benefit and defined contribution plan components. Plan Description All full-time teachers, principals, school nurses and certain other school officials (including the superintendent) in the City's school system must participate in ERS, acost-sharing multiple-employer defined benefit plan administered by the Employees' Retirement System of Rhode Island (the "System"). The plan provides retirement, death and disability benefits (as well as annual cost of living allowances if certain conditions have been met) as outlined in Chapters 36-10 and 16-16 of the Rhode Island General Laws (RIGL). The benefits may be amended by the Rhode Island General Assembly. 52 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 12. EMPLOYEE RETIREMENTSYSTEM(ERS) —DEFINED BENEFITPLAN(Continued) Funding Policy The funding policy is outlined in RIGL sections 16-16-22 and 36-10-2 (which can be amended by the Rhode Island General Assembly), Active plan members must contribute 3.75% of his/her compensation. The City and the State are collectively required to contribute at an actuarially determined rate expressed as a percentage of total compensation paid to the active membership. The employer conh•ibution is split and paid 40% by the State and 60% by the City with the exception of teachers who work in federally funded programs where 100% is paid by the City and reimbursed by the federal government. For fiscal 2014, the total employer rate was 20.68% (8.42% State share and 12.26% local share). The State share of the employer contribution rate includes the total cost of prior contribution deferrals which was ,24% for fisca12014. (b) Employees Retirement Systef~t ofthe Stnte ofRkode Island(Conti~uied) The City contributed approximately $17.4 million, $16.2 million, and $17.9 million during the fiscal years 2014, 2013 and 2012, respectively, equal to 100% of the actuarially required contributions for those respective years, For financial reporting purposes, the State's share of contributions are reflected as on behalf-payments and are included as both revenue and expenditures in the accompanying financial statements. The on-behalf contributions for the defined benefit plan for the fiscal year ended June 30, 2014 amounted to approximately $12 million. The System issues an annual financial report that includes financial statements and required supplementary information for all ofthe plans it administers. The reports can be obtained at www.ersri.org Teachers Defr~red Contriba~tion Pe~7sion Plan Pla~~ Description Employees participating in the defined benefit plan(s), as described above, also participate in a defined contribution plan of the Employees' Retirement System as authorized by General Law Chapter 36-10.3. The defined contribution plan is established under IRS section 401(a) and is administered by TIAA-CREF and the Employees' Retirement System of Rhode Island (the System). Employees may choose among various investment options available to plan participants. Employee contributions are immediately vested while employer contributions are vested after three years of contributory service. Contributions required under the plan by both the employee and employer are established by the General Laws, which are subject to amendment by the General Assembly. Amounts in the defined contribution plan are available to participants in accordance with the Internal Revenue Service guidelines for such plans. Plan Funding Policy The funding policy is outlined in RIGL chapter 36-1.3 (which can be amended by the Rhode Island General Assembly). Active plan members must contribute 5% of his or her compensation and the City is required to contribute 1%. The plan members and the City contributed approximately $7.5 million and $1,507, respectively, during the fiscal year ended June 30, 2014. The System issues an annual financial report that includes financial statements and required supplementary information for all ofthe plans it administers. The reports can be obtained at www.ersri.org Although the City is required to contribute 1%towards the plan for certified teachers, the City receives reimbursement from the State of Rhode Island for 0.4% of 1% of the required contributions. For financial reporting purposes, the State's share of the contribution is reflected as on-behalf payments and is included as both revenue and expenditures in the accompanying financial statements, The on-behalf contributions for the defined contribution plan for the fiscal year ended June 30, 2014 amounted to approximately $600. 53 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 12. EMPLOYEE RETIREMENTSYSTEM (Co~rti~rr~ed) (c) Otlter City Pension Cosfs The City is required to make contributions to the National Pension Plan ofthe Laborers' International Union of North America, amulti-employer plan. The pension cost charged to the general fund for these purposes amounted to $4 million for the year ended June 30, 2014. 13. POSTEMPLOYMENT BENEFITS Plmt Descri~tio~t The City's Post-Employment Medical Benefit Plan is asingle-employer defined benefit postretirement health insurance program administered by the City. The City provides for a portion of the lifetime health care benefits to substantially all retired employees and their spouses. Health care benefits were paid to approximately 4,139 retired participants and spouses during the fiscal year ended June 30, 2014 and are paid substantially on a pay as you go basis, Health care benefits are provided through the City's self-insured health insurance program covering both active and retired employees. The financial activity of these programs is reported as an internal service fund. The Plan does not issue a separate financial report. These benefits are provided for and amended under various provisions of Rhode Island General Law, City Ordinances and the terms of collective bargaining agreements. Fti~tding Policy The contribution requirements of plan members and the City are established and may be amended through provisions of Rhode Island General Law, City Ordinances and through collective bargaining. The required contribution is based on pay as you go financing requirements. For fiscal year 2014 the City contributed approximately $29,620 to the health insurance program on behalf of retirees. Plan members contributed approximately $2,745 or 9.3% of the total contributed. The plan can cover 100% of the costs of the benefit, however, retirees and their spouses are potentially required to fund a portion of the Plan costs depending upon the class an employee has been assigned and their date of hire. Current employee co-share for the retiree health insurance benefit requires a co-share of.O1 of final average salary with a maximum limit of$400. Ann[~al OPEB Cost antl Net OPEB Obligation The City's annual other postemployment benefit (OPEB) cost (expense) is calculated based on the annual required conn•ibution of the employer (ARC), an amount actuarially determined in accordance with the provisions of GASB Statement 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed thirty years. The following table shows the components of the City's annual OPEB cost for the year, the amount actually contributed to the plan, and changes in the City's net OPEB obligation (amounts in thousands): Annual contribution Interest on net OPEB obligation Adjustment to annual required contributions Annual OPEB cost(expense) Contributions made Increase in net OPEB obligation Net OPEB obligation -beginning of year Net OPEB obligation -end of year $ $ 65,210 6,931 (6,311) 65,830 29,620 36,210 173,271 209,481 The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2014 and the two preceding years were as follows (dollar amounts in thousands): 54 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 13. POSTEMPLOYMENT BENEFITS(Co~ttinued) Fiscal Annual Year OPEB Cost Ended 65,830 6/30/2014 $ 74,246 6/30/2013 $ 6/30/2012 $ 70,635 Net Percentage of OPEB AnnuaIOPEB Obligation Cost Contributed 209,481 45% $ 173,271 48.72% $ 47.91% $ 135,200 Funding Stafus and Scheda~le ofFr~nding Progress The unfunded actuarial accrued liability was determined using the level dollar thirty year open amortization basis. Actuarial Valuation Date 7/1/2013 7/1/2012 7!1/2011 Actuarial Value of Assets (a) $ $ $ - Actuarial Unfunded Accrued AAL Liability (UAAL) (AAL) (b)-(a) (b) $ 1,032,887 $ 1,032,887 $ 1,190,552 $ 1,190,552 $ 1,149,115 $ 1,149,115 Funded Ratio (a)/(b) 0.00% 0.00% 0.00% Covered Payroll (c) $ 267,341 $ 260,546 $ 266,731 UAAL as a Percentage of Covered Payroll [(b)-(a)]/(c) 386.36% 456.95% 430.81% Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future, Examples include assumptions about future employment, mortality, and the healthcare cost trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as required supplementary information following the notes to the financial statements, presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Ach~arial Methods and Assr~ntptions Projections of the benefits for financial reparting purposes are based on the substantive plan (the plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between employer and plan members to that point. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the July 1, 2012 actuarial valuation, the projected unit credit method was used. The actuarial assumptions included a 4.0% rate ofreturn (net of administrative expenses), which is a blended rate ofthe expected long-term investment returns on plan assets and on the employer's own investments calculated based on the funded level of the plan at the valuation date, and an annual healthcare cost trend rate of9% initially, reduced by decrements to an ultimate rate of5% after five years. Both rates included a 3.5% inflation assumption (formerly 4.5%). The actuarial value of the assets was determined using techniques that spread the effects of short-term volatility in the market value of investments over a five-year period. The UAAL is being amortized as a level percentage of projected payrolls on an open basis. The remaining amortization period at July 1, 2012, was 30 years. 55 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 14. CONTINGENCIES The City is involved in numerous lawsuits, claims and grievances arising in the normal course of business, including claims for property damage, personal injury and personnel practices, disputes over property condemnation proceedings and suits contesting the legality of certain taxes. In the opinion of City officials, the ultimate disposition ofthese matters will not have a material adverse effect on the City's basic financial statements. Included in the government-wide financial statements is a provision for claims that are deemed probable. The City participates in a number of federally-assisted grant programs. These programs are subject to financial and compliance audits by the grantors or their representatives. In the opinion of City officials, liabilities resulting from such disallowed expenditures, if any, will not be material to the accompanying basic financial statements. The City is committed under contracts for outstanding projects approximating $18 million as of June 30, 2014. 1S. RELATED PARTY TRANSACTIONS The City leases certain properties from the PPBA. The estimated future minimum lease payments required under these agreements coincide with the principal and interest payments on bonds issued by the PPBA. The leases terminate between 2015 and 2028. The City, in turn, subleases a portion of this property to the School Department. At the expiration ofthe leases, the City, at its option, can pw•chase the properties for a nominal amount(see Notes 5 and 7). 16. RISK MANAGEMENT The City is self-insured in most areas of risk; due to "stop loss" insurance, the city is responsible for a maximum of $lmillion per claimant per year for health care claims. Self-insured risks include general liability, property and casualty, workers' compensation, unemployment and employee health insurance claims. The City does, however, purchase commercial insurance for all buildings leased from the PPBA. The City's Counsel defends the City in any lawsuits that arise from the normal course of operations. At no time during the past three years have insurance settlements exceeded coverage. The City's health insurance program provides coverage to the City's employees and retirees through United Healthcare and Blue Cross -Blue Shield of Rhode Island (BCBS). In 1997, the City fu•st went to aself-insured program with BCBS and United Health Care. BCBS and United Health Care act as thud-party agents for the City in the payment of the various claim plans used by the City, Costs incurred for the operation of BCBS and United Health Care plans are accounted for in an internal service fund. Costs to the City are paid by all funds based on "working rates" established by a third party medical consultant, The City is required to record liabilities for self-insured claims if it is probable that a loss has been incurred and the amount can be reasonable estimated. The City has established a liability based on historical trends of previous years, where available, and attorney's estimates of pending matters and lawsuits in which the City is involved. Changes in the risk management liability for the fiscal years ended June 30, 2014 and June 30, 2013 are below. Legal claims and incurred but not reported claims for health benefits are recorded in the City's internal service fund. Accrued workers' compensation claims are recorded on the entity-wide statements. This schedule presents the activity for all selfinsured risks. 2013 2014 $41,261 $42,660 Beginning of year ........................................................................... 99,443 100,900 Incurred claims ............................................................................... Less: payments of claims attributable to events of both the current and prior fiscal years: 98,044 103.921 Health, legal and workers' compensation............................ 42 660 39 639 Total Legal claims ................................................................................... Health — IBNR ................................................................................ Workers' compensation.................................................................. Total............................................................................................ 56 $29,188 6,154 4.297 39 639 $33,154 5,631 3,875 42 66 (Continued) CITY OF PROVIDENCE,RHODE ISLAND Notes to Financial Statements June 30, 2014 17. RESTATEMENT The net position of the Governmental Activities has been restated as of June 30, 2013 to reflect the implementation of GASB Statement #65 —Items Previously Repo~~ted as Assets and Liabilities. Implementation of this new Standard resulted in the removal of bond issuance costs as an asset from the Statement of Net Position (formerly the Statement of Net Assets). Under GASB Statement #65 bond issuance costs, are to be recorded as an expense in the year the costs are incurred rather than amortizing those costs over the life of the bond obligation. As a result, the unamortized bond issuance costs as of June 30, 2013, have been retroactively removed from the opening net position balance. The following reflects the effect of implementation of GASB Statement #65; Governmental activities Net Position, June 30, 2013 as originally stated Less write off of bond issuance costs, net Net Position, June 30, 2013 as restated $ $ Business-type activities Net Position, June 30, 2013 as originally stated Less write-off of bond issuance costs, net Net Position, June 30, 2013 as restated 18. $ $ (146,313) (2,652) (148,965) 258,725 (741) 257,984 Si7BSEQUENTEVENT Subsequent to fiscal year 2014, the City of Providence completed a $23,765 General Obligation Refunding transaction: $17,480 General Obligation Refunding Bonds Series 2014A (Tax Exempt) $ 6,285 General Obligation Refunding Bonds Series 2014B (Federally Taxable) Series 2014A refunded Series 2000 bonds in the amount of $1,295 and refunded Series 2004A bonds in the amount of $16,705. As of the date of closing, the series 2000 and Series 2004A bonds were escrowed in the redemption dated July 15, 2014. As of July 15, 2014, there are no series 2000 or Series 2004A bonds outstanding. Series 2014B (Federally Taxable) refunded Series 2004B (Federally Taxable) bonds in the amount of $6,065. As of the date of closing, the Series 2004B bonds were escrowed to the redemption date of July 15, 2014. As of July 15, 2014,there are no Series 2004B bonds outstanding. In total, the $23,765 Series 2014A and Series 2014B (Federally Taxable)refunding bonds refunded Series 2000, 2004A, and 2004B in the amount of $24,065, 57 (Concluded) CITY OF PROVIDENCE REQUIRED SUPPLEMENTARY INFORMA TION E-1 CITY OF PROVIDENCE, RHODE ISLAND Required Supplementary Information General Fund Revenues and Expenditures-Budgetary Basis Budget and Actual For the Year Ended June 30, 2014 (in thousands) Budgeted Amounts Public safety: Commissioner of public safety Police department Fire department Communications Traffic engineering Building inspection department: Building inspection administration Zoning board of review Building board of review - - 169 25 194 169 25 194 650 650 27,110 5,222 35,110 6,066 $ $ 325,803 4,646 330,449 (255) (854) (1,109) 4,264 - $ 326,058 5,500 331,558 22,846 5,222 38,737 7,300 20 25 200 74,350 1 30 73,539 (3,627) (1,234) (20) (24) (170) (811) 11 12 144 34 201 11 12 (25) 9 7 (74) 8 1 1 (64) 650 58 1,060 780 694 2,813 5,405 58 1,060 780 694 2,813 5,405 82 469 694 627 2,716 4,588 24 (591) (86) (67) (97) (817) 4,579 56 6 4,641 4,579 56 6 4,641 4,036 53 7 4,096 (543) (3) 1 (545) - - - 650 576 8 1 1 586 - Finance: City collector City controller City assessor Personnel 22,846 5,222 38,737 7,300 20 25 200 74,350 - Executive, legislative, and judicial: Law Department City clerk Probate court Housing court 326,058 5,500 331,558 - Payments in lieu of taxes Tax stabilization plans State revenue Fines Rents Investment interest Miscellaneous $ Tax revenues: Property taxes Interest on overdue taxes Actual Final - Original Revenues and Transfers Variance With Final Budget Positive/ (Nepativel (CONTINUED) 58 E-1 CITY OF PROVIDENCE, RHODE ISLAND Required Supplementary Information General Fund Revenues and Expenditures-Budgetary Basis Budget and Actual, Continued For the Year Ended June 30, 2014 (in thousands) Budgeted Amounts Original Revenues and Transfers Public works: Environmental control Highway Sewer construction and maintenance Public lands and parks: Recreation North Burial Ground Other departments: Recorder of deeds Vital statistics Bureau of licenses Emergency Management WSB reimbursement WSB medical reimbursement JTPA/planning reimbursement Room tax Meals and beverage tax Tax stabilization Blue Cross reimbursement Planning and urban development Arts, Culture, Film &Tourism Providence Place Mall Voluntary payments in lieu of taxes D P reimburse school department Human Service Public Properties Transfers: Transfer from rescue runs Transfer from police/fire detail fund Transfer from Road Bond Fund Transfer from School Department Transfers from North Burial Ground Transfer from Other funds Total $ Final Actual 2 186 9 197 2 186 9 197 7 1,302 7 1,316 - - 40 247 287 2,479 313 1,563 150 889 398 100 1,818 4,702 750 2,198 99 300 8,273 1,010 336 25,378 2,479 313 1,563 150 889 398 100 1,818 4,702 750 2,198 99 300 8,273 1,010 336 25,378 2,460 338 1,453 207 839 1,615 4,744 234 2 3 127 300 9,230 1,010 22,562 128 128 321 4,455 1,700 250 600 4,455 1,700 250 600 7,005 7,005 3,524 2,015 60 849 350 588 7,386 449,506 $ 449,506 $ 445,331 Variance With Final Budget Positive/ (Nes~ativel 5 1,116 (2) 1,119 40 247 287 (19) 25 (110) 57 (50) (398) (100) (203) 42 234 (748) (2,195) 28 957 (336) (2,816) 193 (931) 315 (190) 849 (250) 588 381 $ (4,175) (CONTINUED) 59 E-1 CITY OF PROVIDENCE, RHODE ISLAND Required Supplementary Information General Fund Revenues and Expenditures-Budgetary Basis Budget and Actual, Continued For the Year Ended June 30, 2014 (in thousands) Budgeted Amounts Original Expenditures and Transfers Executive, legislative and judicial: Mayor's office City Council City sergeant City clerk Law department Municipal court Probate court Housing court Contingencies-Mayor Finance: Finance Director City controller Employees retirement office Data processing City collector City assessor Board of tax assessment review Treasury department Personnel Heat, light and power Debt service Employee Death Benefit Workers compensation Unemployment compensation Reserve for anticipated tax abatements Elected officials pension contribution Public safety: Commissioner of public safety Police department Fire department Communications department Traffic Engineering $ Actual Final 2,487 1,075 71 823 3,973 1,998 402 407 99 11,335 $ 2,487 1,075 71 823 3,973 1,998 402 407 99 11,335 $ 2,342 925 71 659 2,937 1,970 405 391 116 9,816 variance w~cn Final Budget Positive/ (Negative) $ 145 150 164 1,036 28 (3) 16 (17) 1,519 576 1,225 371 2,580 2,124 1,602 14 488 1,587 6,200 66,446 200 1,792 215 125 85,545 576 1,225 371 2,580 2,124 1,602 14 488 1,587 6,200 66,446 200 1,792 215 125 85,545 492 1,128 436 2,386 2,401 1,677 15 470 1,628 6,967 62,473 212 1,925 166 54 82,430 84 97 (65) 194 (277) (75) (1) 18 (41) (767) 3,973 (12) (133) 49 (54) 125 3,115 1,658 65,471 67,775 8,759 1,083 144,746 1,658 65,471 67,775 8,759 1,083 144,746 1,574 64,763 69,490 8,638 1,198 145,663 84 708 (1,715) 121 (115) (917) (CONTINUED) 60 E-1 CITY OF PROVIDENCE, RHODE ISLAND Required Supplementary Information General Fund Revenues and Expenditures-Budgetary Basis Budget and Actual, Continued For the Year Ended June 30, 2014 (in thousands) Budgeted Amounts Expenditures and Transfers Building inspection department: Building inspection administration Structures and zoning division Plumbing, drainage, and gas piping division Electrical installations division Mechanical equipment and installation division Zoning board of review Building and housing board of review Building inspection code enforcement Building inspection prosecution Public works: Public works administration Engineering and sanitation Environmental control Highway Snow removal Sewer construction and maintenance Garage maintenance and equipment repair Recreation: Recreation seasonal Public lands and parks: Grounds maintenance services Forestry services Zoological services Park environmental services (Greenhouse) Park programming (Roger Williams Park) Superintendent of parks North Burial Grounds Other departments: Recorder of deeds Vital statistics Board of canvassers Bureau of licenses Original Actual Final variance witn Final Budget Positive/ (Negative) 78 220 1,525 1,406 1,525 1,406 1,447 1,186 226 243 226 243 306 272 (80) (29) 304 17 14 395 187 4,317 304 17 14 395 187 4,317 88 20 12 544 221 4,096 216 (3) 2 (149) (34) 221 711 714 8,663 4,035 1,816 743 711 714 8,663 4,035 1,816 743 737 546 9,543 4,964 1,451 796 (26) 168 (880) (929) 365 (53) 861 17,543 861 17,543 767 18,804 94 (1,261) 703 703 703 703 710 710 (7) (7) 5,265 1,081 2,797 533 1,871 1,044 717 13,308 5,265 1,081 2,797 533 1,871 1,044 717 13,308 5,267 962 2,845 557 1,825 1,137 642 13,235 (2) 119 (48) (24) 46 (93) 75 73 501 323 528 698 501 323 528 698 486 306 542 696 15 17 (14) 2 (CONTINUE 61 E-1 CITY OF PROVIDENCE, RHODE ISLAND Required Supplementary Information General Fund Revenues and Expenditures-Budgetary Basis Budget and Actual, Continued For the Year Ended June 30, 2014 (in thousands) Budgeted Amounts Original Grants: Providence Public Library Community centers Crossroads P.A.S.A Institute of Non-Violence Grants (Transfer to Mary Sharpe) Grant Expenditure Public properties Transfers: Transfers to School Department Transfer to Active Medical Transfer to Retiree Benefits Deficit Reduction Total $ 22 1,874 82 25 18 7 244 (37) (57) 2 877 5,387 880 330 253 71 504 624 339 10 12 9 74 11,420 877 5,387 880 330 253 71 504 624 339 10 12 9 74 11,420 855 3,513 798 305 235 64 260 661 396 8 12 4 62 9,203 5 12 2,217 3,624 243 109 250 73 22 3,624 243 109 250 73 22 3,624 228 109 250 22 15 73 - 4,321 4,321 4,233 88 6,395 6,395 6,649 (254) 124,897 21,093 3,883 124,897 21,093 3,883 124,897 1,509 23,048 - (1,509) (1,955) 3,883 149,873 149,873 149,454 449,506 $ 449,506 $ 444,293 - Other departments, Continued: Emergency Management Planning and urban development Administration to City Council Internal auditor Archives Human relations commission Department of human services Office of Arts, Culture, Film &Tourism Office of parking administration Providence Housing Authority League of Cities Ceremonies P.E.R.A. Actual Final - Expenditures and Transfers variance witn Final Budget Positivel (Negative) 419 $ 5,213 (CONCLUDED) 62 E-2 CITY OF PROVIDENCE, RHODE ISLAND Required Supplementary Information Schedule of Revenues and Expenditures-Budget and ActualSchool Fund For the Year Ended June 30, 2014 (in thousands) Budgeted Amounts Final Original Revenues: Federal and state revenue Other revenue Transfers from other funds Master lease proceeds Tota/ revenues 210,538 1,985 124,897 210,538 1,985 124,897 $ 211,556 1,277 124.897 $ 1,018 (708) - 337,420 337,420 337,730 310 337,420 337,420 337,420 337,420 336,881 849 337,730 539 (849) (310) $ $ - 63 $ $ Excess revenue over expenditures Actual - Expenditures: Education Transfer to other funds Total expenses $ Variance With Final Budget Positive (Negative) E-3 CITY OF PROVIDENCE NOTES TO REQUIRED SUPPLEMENTARY INFORMATION JUNE 30,2014 Schedules of Revenues and Expenditures -Budget and Actual —General and School Funds The City employs the following procedures in establishing the General Fund budgetary data reflected in the accompanying required supplementary information: • At least sixty days prior to July 1, the Mayor submits a proposed operating budget for the upcoming fiscal year to the City Council. The operating budget includes proposed expenditures and the means of financing appropriations over expected revenues. • The final budget is legally enacted through passage of an ordinance. • The Mayor is authorized to make minor transfers of budgeted amounts between departments. Significant budget revisions or transfers must be approved by the City Council. The General and School funds are the only governmental funds that have legally adopted annual budgets. The "actual amounts" presented in the accompanying schedules are presented on a budgetary basis. The budget for the School Fund is prepared annually and approved by the Providence School Board. The amount of the annual transfer from the General Fund is ultimately determined through the adoption of the General Fund budget. This appropriation does not lapse at year-end. The difference between the amounts shown in the accompanying schedules and those shown in the basic financial statements relate solely to reclassifications made between revenues and expenditures as presented below(in thousands): School Fund General Fund Total budgetary revenues and transfers per schedule Reclassification o£ On-behalf payments paid directly by the State of Rhode Island Teachers' Retirement System Revenue from various other special revenue funds combined with General Fund per GASB 54 requirements Total revenues and transfers per financial statements Total budgetary expenditures and transfers per schedule Reclassification of: On-behalf payments paid duectly by the State of Rhode Island Teachers' Retirement System Expenses and transfers of various other special reveune funds combined with General Fund per GASB 54 requu•ements Total expenditures and transfers per financial statements 445,331 337,730 12,038 7,221 $ 452,552 $ 349,768 $ 444,293 $ 337,730 12,038 7,104 $ i~ $ 451,397 $ 349,768 E-4 CITY OF PROVIDENCE REQUIRED SUPPLEMENTARY INFORMATION —FUNDING PROGRESS J[.JNE 30, 2014 The information presented in the requu•ed supplementary schedules was determined as part ofthe actuarial valuation at the date indicated. Additional information as ofthe latest valuation follows: Pension SCHEDULE OF FUNDING PROGRESS (Dollar Amounts in Thousands) $ $ $ $ $ $ $ $ 36.29% 37.93% 37.40°/a 39.49% 38.57% 33.49% 34.06% 31.84% 33.60% 31.39% $ 653,217 616,339 659,036 652,962 715,719 804,801 828,484 903,311 758,613 831,524 Covered Payroll (c) Funded Ratio (a/b) $ $ $ $ $ $ $ $ $ $ 1,025,345 993,029 1,052,805 1,079,017 1,165,183 1,210,018 1,256,375 1,325,274 1,142,494 1,212,008 Unfunded AAL (UAAL) (b-a) $ $ $ $ $ $ $ $ $ 372,128 376,690 393,768 426,055 449,464 405,217 427,891 421,963 383,881 380,484 $ SCHEDULE OF CONTRIBUTIONS FROM THE CITY Annual Year Percentage Required Ended Contribution Contributed June 30 $ $ $ $ $ $ $ $ 49,329 51,454 50,584 54,200 48,509 51,299 56,380 58,924 58,145 62,140 $ 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 $ $ $ $ $ $ $ $ $ $ 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 $ Actuarial Valuation Date June 30 Actuarial Accrued Liability(AAI,) (b) $ Actuarial Value of Assets (a) 65 92.15% 96.22% 100.20% 100.00% 99.80% 97.66°/a 100.00% 82.23% 100.00% 100.85% 115,548 118,600 126,458 132,719 133,008 ]35,516 137,355 135,474 131,946 139,893 UAAL as a Percentage of Covered Payroll ((b-a)/c) 565.32% 519.68% 521.15% 491.99% 538.10% 593.88% 603.17% 666.78% 574.94% 594.40% E-5 CITY OF PROVIDENCE REQUIRED SUPPLEMENTARY INFORMATION —FUNDING STATUS JUNE 30,2014 Other Post-Employment Benefits Actuarial Valuation Date 7/1/2013 7/1/2012 7/1/2011 7/1/2010 7/1/2009 7/1/2008 7/1/2007 Actuarial Actuarial Accrued Liability Value of Assets (AAL) (b) (a) $ $ 1,032,887 $ $ 1,190,552 $ $ 1,149,115 $ 1,040 $ 1,212,615 1,040 $ 1,498,491 $ $ 1,035 $ 593,903 $ $ 542,413 $ $ $ $ $ $ $ Unfunded AAL (UAAL) (b)-(a) 1,032,887 1,190,552 1,149,115 1,211,575 1,497,451 592,868 542,413 •~ Funded Ratio (a)/(b) 0.00% 0.00% 0.00% 0.09% 0.07% 0.17% 0.00% $ $ $ $ $ $ $ Covered Payroll (c) 267,341 260,546 266,731 267,593 268,871 274,827 256,157 UAAL as a Percentage of Covered Payroll [(b)-(a)]/(c) 386.36% 456.95% 430.81% 452.77% 556.94% 215.72% 211.75% E-6 CITY OF PROVIDENCE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF CHANGES 1N THE NET PENSION LIABILITY AND RELATED RATIOS JUNE 30,2014 2014 Total Pension Liability Service cost Interest Changes of benefit leans Differences between expected and actual expeience Changes of assumptions Benefit payments, including refunds of member contributions $ (96,570) 18,281 1,212,008 Net Change in Total Pension Liability Total Pension Liability -Beginning Total Pension Liability -Ending (a) Plan Fiduciary Net Position Contributions -employer Contributions -member Net Investment income Benefit payments, including refunds of member contributions Administrative expense 18,844 96,007 $ $ 1,230,289 62,140 10,873 47,003. (96,570) (1,519) 21,927 Not Change in Plan Fiduciary Net Position 335.785 Plan Fiduciary Net Position -Beginning Plan Fiduciary Net Position -Ending(b) $ 357,712 Net Pension Liability -Ending (a)-(b) $ 872,577 Plan Fiduciary Net Position as a Percentage of the Total Pension Liability Covered Employee Payroll Net Pension Liability as a Percentage of Covered-Employee Payroll 29.08% $ 139,893 623.75% E-7 CITY OF PROVIDENCE REQUIlZED SUPPLEMENTARY INFORMATION SCHEDULE OF CONTRIBUTIONS June 30,2014 Actuarially determined contribution $ Contributions in relation to the actuarially determined contribution Contribution deficiency (excess) $ Covered-employee payroll $ Contributions as a percentage or covered-employee payroll 2014 61,615 62,140 (525) 139,893 44.42% Notes to Schedule: Valuation date: Actuarially determined contribution rates are calculated as of July 1, two years prior to the end ofthe fiscal year in which contributions are reported. Methods and assumptions used to determine contribution rates: Entry age Amortization method: Level dollar for the 1995 deferral liability and increasing 3.5%per year for the remaining unfunded liability. Remaining amortization period: Market value of assets as reported by the City less unrecognized returns in each of the last five years plus the discounted contribution paid by the city in the following year. Unrecognized return is equal to the difference between the actual market return and the expected market return and is recognized over afive-year period, further adjusted, if necessary, to be within 20% ofthe market value. Inflation: 3.5% Salary increases: 3.5%per year before reflecting increases due to longevity compensation. Investment rate of return: 8.25%, net of pension plan investment and administrative expenses, including inflation. Cost of living adjustments: 10-year freeze as of January 1, 2013 and 3%thereafter. Benefit changes: There have been no changes in benefit provisions since GASB 67/68 implementation Assumption changes: The actuarial assumptions used to reflect the assumptions proposed in the Experience Investigation for• the Five Year Period Ending June 30, 2011 submitted to the Board on April 2, 2012, with the following exception: The retirement rate for Class B participants is 100% at age 60. •: Actuarial cost method: E-8 CITY OF PROVIDENCE REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF INVESTMENT RETURNS June 30, 2014 2014 Annual money-weighted rate of return, net of investment expense 17.50% .• CITY OF PROVIDENCE THER SUPPLEMENTARY INFORMA TION CITY OF PROVIDENCE NONMAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Special revenue funds are used to account for specific revenues that are legally restricted to expenditures for particular purposes. Neighborhood Housing Fund — is used for Administrative and Program Expenses primarily related to Housing Repair Loan Programs and Downpayment/Closing Assistance Programs. Also income related to Tax Stabilization Agreements. Federal Funds Fund — is used to account for Administrative and Program Expenses and Program Income primarily related to the following federally funded programs: Community Development Block Grant, Emergency Shelter Grant and Housing Opportunities for Persons with Aids. PEDC Fund - is used to account for Administrative and Program Expenses and Program Income primarily related to loans and grants for business start-ups, expansion, and operating costs (Industrial, Commercial and Operating Accounts). PRA Fund — Is used to account for Administrative and Program Expenses and Program Income primarily related to the sale, rent and upkeep of Providence Redevelopment Agency controlled land and buildings. Expenses related to implementation of redevelopment projects. Other P&D — is used to account for Good Faith Deposits —Deposits to secure vacant lots of the PRA until closing. There is also the Lead Fund which is primarily for expenses and income related to federally funded programs that supply loans to homeowners for remediation work, income from federal grants and City Bond dollars. Other Special Revenue Funds — is used to account for various smaller special revenue funds used by the City. Skating Rink — is used to account for the operations of the Skating Rink. WDO — is used to account for proceeds received from the federal government for workforce development services. Capital Proceeds Fund — is used to account for various smaller operations. It primarily consists of a Trust Fund that has spending stipulations for various City operations, and proceeds received for public safety and seizure. CITY OF PROVIDENCE NONMAJOR GOVERNMENTAL FUNDS PERMANENT TRUST FUNDS Other Nonmajor governmental funds are used to account for permanent trust funds. F-1 CITY OF PROVIDENCE,RHODE ISLAND 13,792 17,755 $ 3,400 3,301 1,274 16,337 $ $ $ $ $ $ 796 $ $ 494 534 Totals 666 164 1,200 65 13,542 269 16,908 17,880 $ 7,949 322 504 12,845 779 16 55 164 WDO $ 2,565 16 2,383 167 Skating Rink umer Nonmajor Governmental Capital Proceeds Fund Funds $ 3,875 302 Other Special Revenue Fund $ 343 D $ 12,831 2,227 9,776 $ 2,359 8,160 884 $ Other P PRA $ $ 873 PEDC $ $ 1,808 Federal Funds 5,798 $ ASSETS Cash and cash equivalents Investments Receivables, net: Loans Intergovernmental Other Due from otherfunds Other assets Total assets $ Neighborhood Housing & Combining Balance Sheet Nonmajor Governmental Funds June 30, 2014(in thousands) 11,924 29,581 26,789 2,345 81 21,465 504 92,689 656 674 12,819 1,765 10,932 122 260 951 2,270 450 61 249 $ $ 275 $ 37 $ 614 77 103 103 $ 1,204 1,913 $ $ $ 12 2,954 3,171 469 2 47 162 680 798 1,073 7,791 7,828 3,620 260 8,311 18,836 31,027 288 16,519 18,770 33,362 9,530 9,080 61 249 9,080 16,807 61,662 17,755 12,845 796 3,400 164 1,200 16,908 17,880 92,689 $ 2,720 $ 122 $ 10,932 $ 14 584 $ 13,792 18 $ (49) 709 $ 7,949 $ $ 7,156 205 $ Total liabilities and fund balances (de£cits) (49) $ 6alances(defrcifs) 1,283 6,117 4,441 13,841 5,663 1,493 $ Total fund FUND BALANCES(DEFICITS) Nonspendable ResVicted Committed Unassigned 10 181 135 467 793 $ LIABILITIES Warrants and accounts payable Accrued liabilities Unearned revenue Due tootherfunds Totalliabil"Kies $ LIABILITIES AND FUND BALANCES F2 CITY OF PROVIDENCE, RHODE ISLAND Combining SUtement of Revenues, Expenditures, and Changes in Fund Balance Nonmajor GovemmenWl Funds June 30,2014(in thousands) Neighborhood Housing Revenues Departmental Intergovernmental Investment and rental income Other Total Revenues Federal Funds PEDC PRA $ $ 27 $ 1 28 Expenditures Current: Executive, legislative, andjudicial Finance Public safety Recreation Public lands and parks Community development DaM service Principal Interest and other costs Capifal outlay Total expenditures 7.568 $ 55 7623 13 272 36 321 Other Special Revenue Fund Other P&D 8,201 $ $ 1 895 9 097 684 97 761 Other Nonmajor Governmental Funds Capital Proceeds Fund WDO 568 $ $ 4,916 $ S 568 4 916 69 72 141 194 $ 99 3,132 13 3 244 887 26 5,200 560 902 82 7,400 411 311 6 82 Excess (deficiency) of revenue over expenditures (54) 7719 (96) 5,687 Net change in fund balance (deficit) (54) Fund Balance (deficit), beginning of year 7 210 $ 7 156 $ (96) 47 (49) S 4,667 452 102 1,088 411 (90) 8 174 923 (90) 923 Totals 9,272 16,138 3,795 1,993 33 198 1,081 26 9,867 1,012 1,004 14,666 2,798 8 2,467 1 088 (307) Other Financing Sources(Uses) Transfers in Transfers out Loan proceeds Total other financing sources(uses) Fund Balance (deficit), end of year 503 5 4.831 320 825 6 479 Skating Rink (307) 6 856 (377) 452 4 667 26 969 30,464 116 249 115 2,255 2,734 360 (451) (325) 136 (486) 496 (1,262) (91) (325) (350) (766) (468) 14 674 10,009 429 3 188 14 584 $ 10 932 $ 122 $ 2720 $ 116 249 (55) 61 3 249 5 1,905 1,968 9,290 14,902 59.694 9.080 S 16,807 $ 61,662 (210) G-1 ITY OF PROVIDENCE. RHODE ISLAND COMBINING BALANCE SHEET BY GRANT ACCOUNT JUNE 30, 2074 (in thousands) Grants From Other Sources Sports Complex 1,922 Totals $ 2,229 Indirect Costs $ 2,971- $ 243 State Grants $ $ 711 Direct Federal Grants 4,641 8,076 4,649 195 195 $ 152 2,074 $ 131 2,360 $ 143 3,122 $ 243 $ 104 5,456 $ - 8 $ $ ASSETS Cash and investments Receivables, net: Other governments Other Due from other funds Total assets $ Federal Grants 725 13,450 2,219 2,329 1,100 903 903 31 31 974 974 195 195 2,372 2,372 3,122 2,360 2,074 195 13,450 $ - $ 1,100 $ $ $ $ - 72 $ 243 243 20 $ 2,071 128 $ $ 269 269 5,456 243 1,814 7 494 14 $ $ 18 4,122 13 5,187 FUND BALANCES(DEFICITS) Restricted: Total fund balances(deficits) Total liabilities and fund balance (deficits) 1,034 $ LIABILITIES Accounts payable Accrued liabilities Unearned revenue Due to other funds Due to other governments Total liabilities $ LIABILITIES AND FUND BALANCES 2,868 7 2,583 5,607 13 11,078 G-2 CITY OF PROVIDENCE. RHODE ISLAND COMBINING SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES BY GRANT FUND JUNE 30, 2014 (in thousands) Direct Federal Federal Grants $ 40,263 $ Grants From Indirect Sports Grants Other Sources Costs Complex Totals 407 $ $ 40,670 384 41,054 407 16,601 7,470 (92) (7) 8 0 16,517 7,463 1,260 10,378 678 222 2 2,176 3 24 38,814 281 133 47 32 171 2 1,588 10,543 897 274 2 2,233 29 24 39,570 40,263 $ - $ 91 91 293 293 $ - EXPENDITURES: REVENUES: Federal and state governments Miscellaneous Total revenues Grants State Personnel services Employee benefits Other supplies Equipment Miscellaneous services Other services Pupil transportation Repairs Office supplies Education supplies Textbooks Total expenditures OTHER FINANCING SOURCES(USES) Transfer to other funds Transfer from other funds Total other financing sources(uses) - 23 26 34 414 294 48 - (1,100) 1,449 349 (1,449) (1,449) Net change in fund balances (deficit) - Fund balance, beginning ofyear Fund balance (deficit), end of year 50 - 269 $ 269 $ - $ 48 - (2,549) 1,449 (1,100) - - (7) (1) 349 43 384 910 32 625 152 1,988 903 $ 31 974 $ 195 $ 2,372 $ CITY OF PROVIDENCE AGENCY FUNDS Agency funds are used to account for assets held by the government as an agent for others. 61 CITY OF PROVIDENCE, RHODE ISLAND Statement of Changes in Assets and Liabilities For the Year Ended June 30, 2014 (in thousands) 74 545 545 1,287 1,287 $ $ $ 2,015 44 2,059 $ $ $ 1,317 $ $ $ 1,317 $ 1,937 100 2,037 $ 1,979 58 2,037 Balance June 30, 2014 Deletions Additions $ $ $ liabilities Other payables Due to student group Total Liabilities $ AGENCY FUND Assets Cash and cash equivalents Other receivables Total Assets $ Balance June 30, 2013 1,281 14 1,295 650 645 1,295 CITY OF PROVIDENCE CAPITAL ASSETS J-1 City of Providence Capital Assets Used in the Operation of Governmental Funds For the Year Ended June 30, 2014(in thousands) Governmental funds capital assets, net of related accumulated depreciation Land Improvements other than buildings Buildings and improvements Buildings -leases Infrastructure Machinery and equipment Construction in progress -City Construction in progress - PPBA Investments in governmental funds capital assets: Assets put into service as of June 30, 2014 75 $ 46,767 45,426 123,007 338,734 103,693 20,106 425 22,104 700,262 $ 700,262 $ CITY OF PROVIDENCE STATISTICAL SECTION This part of the City of Providence, Rhode Island's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents: Financial Trends These schedules contain trend information to help the reader understand how the government's financial performance and well-being have changed over time. Revenue Capacity These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Debt Capacity These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future. Demographic and Economic Information These schedules offer demographic and economic indicators to help the reader understand the environment within the government's financial activities take place. Operating Information These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. CITY OF PROVIDENCE,RHODE ISLAND Schedule 1 Net Position By Component Last Ten Fiscal Years* (accrual basis ofaccounting (in thousands) Fiscal Yeaz Governmental activities: Invested in capital assets, net ofrelated debt Unrestricted Total governmental activities net assets Business-type activities: Invested in capital assets, net ofrelated debt Restricted Unrestricted Total business-type activities net assets Primary government: Invested in capital assets, net ofrelated debt Restricted Unrestricted Total primary government aet assets 2007 2006 2005 2009 2008 102,250 $ (63,215) 2011 2012 2013 2014 122,820 $ (143,890) 127,340 $ (233,086) 122,997 $ (261,508) 117,449 $ (263,762) 199,002 (341,989) (105,746) $ (138,511) $ (146,313) $ (142,987) $ 34,042 $ (4,820) 22,435 11,285 $ 51,350 765 $ $ 29 222 $ 33 720 $ 52,115 $ 51,247 $ 39,035 $ (21,070) $ $ 147,543 $ 16,193 (888) 157,507 17,515 7,431 $ 165,284 19,470 8,178 $ 143,479 54,745 8,465 $ 159,670 44,280 6,622 $ 179,800 31,037 3,503 $ 201,281 18,809 11,661 $ 213,758 20,943 10,986 $ 217,210 35,112 6,403 $ 225,544 36,627 6,676 $ 162,848 $ 182,453 $ 192,932 $ 206,689 $ 210,572 $ 214,340 $ 231,751 $ 245,687 $ 258,725 $ 268,847 $ 181,585 $ 16,193 (5,708) 179,942 17,515 18,716 $ 216,634 19,470 8,943 $ 223,780 $ 54,745 (20,589) 261,920 $ 44,280 (56,593) $ 192,070 216,173 $ 245,047 $ 257,936 249,607 $ 80,301 $ (29,054) ?010 76 $ $ 302,620 $ 31,037 (140,387) 193,270 $ 328,621 $ 18,809 (221,425) 126,005 $ 336,755 $ 20,943 (250,522) 107,176 $ 334,659 $ 35,112 (257,359) 112,412 $ 424,546 36,627 (335,313) 125,860 CITP OF PROVIDENCE,RHODE ISLAND Schedtde 2 Cliauges Li Net Position Last Ten Fiscal Years* (accr~ml basis ofaccounting (in lltotrsands) 2005 Expenses: Govenunei~tal activities: Executive, legislative, and judicial Finance Public safety Building inspection Pubiic works Recreation Pubticland and parks Education Community development 6uerest on long-term debt Total governmental activities expenses Business-type activities: PPBA Water Supply Board Civic Center Noi~-major School lunch program Total business-type nctivities expenses Totalprimniy government expenses Program revenue: Govenunental activities: Charges for services: Executive, legislative, and judicial Finance PuUlicsafety Building inspection PuUlic~vorks Recreation Public land and parks Education Community development Operating grants and contributions: Executive, legislative, and judicial Finance Public safety Public works Recreation Public land and parks Education Community development Capital gaits and contributions: Finance Education Total governmental activities progrflm revenue: $ 15,514 38,517 152,354 4,578 28,223 3,341 22,484 361,220 16,758 26,134 669,123 2006 2008 2007 2009 2010 2011 2012 2013 2014 $ 15,552' $ 22,761 32,655 106,740 170,273 110,246 5,455 2,495 30,275 21,992 2,939 3,933 23,992 17,535 373,591 380,730 21,175 23,432 21,863 18,639 698,764 707,509 $ 19,352 119,373 111,183 2,717 18,384 3,089 17,249 387,624 20,811 17,056 716,838 $ 32,624 111,908 106,243 2,946 17,079 2,771 5,523 377,736 26,110 27,360 710,300 $ 42,202 59,345 182,787 4,806 23,030 3,285 21,069 381,096 31,150 27,389 776,159 $ 40,382 58,740 178,374 4,636 28,451 1,593 24,572 388,612 21,467 26,699 773,526 $ 51,677 57,819 157,676 4,126 25,754 1,644 19,437 379,768 18,687 32,365 748,953 $ 36,944 58,462 170,854 4,264 15,752 1,876 21,941 395,215 24,297 26,817 756,422 $ 36,036 49,261 169,742 4,381 23,965 2,131 20,825 402,539 18,901 19,984 747,765 9,929 42,421 9,106 9,314 43,661 2,241 11,790 46,105 14,900 47,670 17,222 50,381 17,696 52,303 18,949 47,483 19,992 50,461 19,396 52,553 19,322 56,271 61,456 55,216 57,895 62,510 12,044 79,647 12,194 82,193 12,836 79,268 13,908 84,361 14,422 86,371 15,448 91,041 730,579 753,980 765,404 779,348 789,947 858,352 852,794 833,314 842,793 838,806 224 22,216 19,412 4,660 258 91 1,271 1,931 2,054 234 24,526 16,336 4,817 244 90 1,216 2,802 125 788 34,717 14,831 6,379 2,259 418 4,004 1,526 7,233 26S 18,779 20,867 4,993 202 361 410 ],621 8,397 241 16,928 22,222 4,240 213 416 438 8,309 8,982 222 42,926 19,515 3,599 219 231 311 11,691 375 203 51,412 16,252 3,405 132 226 S81 11,704 88 232 63,264 11,384 4,112 193 206 136 12,558 10 222 68,955 11,776 4,503 229 211 264 12,174 - 198 67,590 12,050 4,036 516 196 321 12,599 - 136 269 1,696 3,044 570 248,927 17,361 142 683 3,039 3,171 599 252,043 25,502 1 61 2,702 703 4,679 248,239 15,472 4,924 7,348 3,084 2,200 3,183 183 51 743 4,714 248,949 13,758 329 177 235,234 11,943 349 296 261 442 395 238,267 14,645 243,134 15,856 225,661 12,518 247,624 13,005 252,226 8,292 13,115 15,199 15,039 13,908 15,872 337,235 350,768 359,051 342,891 332,892 335,434 345,489 333,718 359,588 358,470 (CONTINUED) 77 CITP OF PROVIDCNCG,RHODE ISLAND Schedule 2 Cha~~ges In Net Position, Continued Last Ten Fiscal Years* ~QCCI'tlQl bl1SfS OfgCC0t07(771~' Program revenue: Busuiess-type activities: Charges for services: PPBA Water Supply Board Civic Center Non-major Sc1~ool lunch program Capital grants and contributions: Water Supply Board Total business-type ncNvities program revenues 2005 2006 2007 2008 2009 2010 2011 2072 2013 2014 8,197 48,807 5,581 7,825 52,432 1,824 10,988 52,749 - 15,712 56,032 - 9,835 59,575 12,040 16,362 54,976 12,446 18,548 64,017 12,986 20,996 61,726 20,020 61,070 19,652 62,872 14,548 15,124 15,414 1,464 1,309 1,613 898 775 773 510 200 2,100 3,304 64,049 63,390 65,350 72,642 82,225 84,557 96,061 97,470 98,314 701,242 Total primary government program revenues 401,284 414,158 424,401 415,533 415,]17 419,991 441,550 431,188 457,902 459,712 Net(espei~se) revenue: Governmental activities Business-type activities Total primary government net expense (331,888) 2,593 (329,295) (347,996) 8,174 (339,822) (348,458) 7,455 (341,003) (373,947) 10,132 (363,815) (377,408) 2,578 (374,830) (440,725) 2,364 (438,361) (428,037) 16,793 (411,244) (415,235) 13,109 (402,126) (396,834) 11,943 (384,891) (389,295} 10,201 (379,094) 260,629 26,879 257,776 20,124 272,366 19,575 284,775 79,680 289,837 19,103 286,998 23,115 320,591 23,461 325,960 25,645 331,133 27,710 49,546 8,033 3,563 696 3,148 352,494 51,967 19,779 17,207 42,787 19,905 409 18,037 38,048 1,230 40,070 252 25,619 153 21,473 100 19,296 84 18,158 1 21,525 31,358 17,473 16,846 18,290 (243) 18,871 - 366,853 373,079 365,258 380,620 353,358 382,471 389,032 395,273 1,670 245 2,227 - 3,024 - 3,625 1,243 1,404 618 827 852 243 662 - 1,915 11,431 3,024 3,625 1,243 1,404 618 -827 1,095 662 328,536 363,925 369,877 376,704 366,501 382,024 353,976 383,298 390,127 395,935 4,498 (5,267) 19,605 4,508 $ (759) $ 24 103 18,395 10,479 $ 28 874 General revenues and other changes in net assets: Govenunental activities: 258,273 Property taxes 17,656 Payments in lieu oftaxes Grants and contributions not restricted to 45,781 speci£c programs 4,465 Investment income (31) Gain (loss) on disposal 782 Miscellaneous (245) Transfers Sale of building and land 326,621 Totaigovernmentnlactivities Business-type activities: IirvesUnent earnings Transfers Special items: Sale of building aid land Total business-hype activities Total primary government Changes in net assets: Governmental activities Business-type activities Totnl primary government Y~LV4 (868) 13,757 $ 12 889 5,978 (7,802) (32,764) (60,105) (74,679) (12,150) 10,863 13,936 13,038 17,411 3,768 3,821 $ (8 329) $ (56,337) $(57,268) $(18,828) $ 5,236 $ 16,841 (CONCLUDED) 7s CITY OF PROVIDENCE,RHODE ISLAND Schedule 3 Fund Balances, Governmental Funds Last Ten Fiscal Years (mod~ed accrual basis ofaccounting Fiscal Year General Fund: Designated for future uses Unreserved/Unassigned Totat General Fund All Other Governmental Funds: Nonspendable Restricted Committed Unassigned Reserved Unreserved: Designated for future uses Special Revenue Undesignated: Capital Projects Special Revenue Permanent Trust Total all other government funds $ $ 401 16,706 17 107 $ $ 433 19,251 19,684 $ $ 550 21,614 22,164 $ $ 22,361 22,361 $ $ 17,361 17,361 $ $ 1,378 2,080 3,458 $ $ $ $ $ 11,758 $ 10,885 $ 10,157 11,146 - 11,146 - 16,026 ?4,930 57,228 - 23,541 95,918 - 14,513 76,976 18,223 105,062 $ 141490 $ - $ 135,895 $ 11,729 $ 14,183 $ 16,754 - 9,311 7,394 57,678 14,932 9,807 42,400 11,821 7,081 20,041 12,794 79 $ 94,965 $ $ 16,428 36,253 12,194 3,686 $ $ $ (11,399) (11,399) $ $ (9,827) (9,827) $ (8,672) (8,672) 19,818 $ 35,103 9,275 (262) 19,932 $ 71,066 10,268 (18) 18,770 51,378 9,530 - 15,882 18,045 - 109,778 3,725 3,725 65,109 $ 68,561 $ 63,934 $ 101,248 $ 79,678 CITY OF PROVIDENCE.RHODE ISLAND Sctwdulc 4 Civu~gcs In Fund Balances. Govcrnmennl Fords Last Trn Fiscal Ycars (modifred accnta(basis ofaccountingl Fiscal Ycar 2006 2005 Rcvenucs: Ta~cs Dcparmiental revenue Federal and state gams and rcimbu=scmcnts Invcstrncnt and rcnial income Finn and forfeiwres Siam Fiscal StabiliiaUon Funds OfBcr Total rcvenucc $ E.~~pcndiNres: Current: Ereculive, legslative, andjudicial Finance Public safety Building inspection Public works Rccrgllon Public lands and parks Other dcpamncnts Grants Fduwtion CommuniTy development NoncursrnC Capipi outlays Debt savicc principal payments Debt service interest and otlicr payments Total expenditures Eicccs of revenues(under) expenditures Other financing sources (uses): Capital leases issued Capita]aous issued Bond proceeds Payment to refiu~ding bonds escrow agent Prcmimn on bond issued Loan proceeds Praeeds from sale ofreal estate T~ansfcrs in Ttansfers out Proceeds on refunding bonds issued Total other financing sources (uses) Debt service u a percentage ofnoucapitil cpenditures $ 285,966 33,877 S 281.422 67,352 S 2Ti.956 64.136 2014 324.058 92,653 S 330,419 88,032 11,!00 10.3.361 103,795 2.838 15.650 2.656 14.582 5,9;9 4.086 380377 22.024 14,239 43,447 166.254 4.391 19,064 2.902 19,1iS 9,262 4379 3ffi,636 26,621 12,695 39,526 165,909 4.308 21,806 1,470 21,716 9,767 4,185 378.572 17.282 15,364 49,661 151,655 3.901 26.179 1332 21,034 10,185 4.297 362,649 14.390 11,649 50.743 153,492 3931 1&963 1,750 20,458 7.8T1 4,231 382,618 20.066 11,090 4M1.540 161,866 4.096 18,852 2,004 21,15 9203 4,J33 38&489 14,668 19.627 32,267 18.978 739,988 14,520 35.051 14,622 742.615 7903 36,929 20,591 732,039 2.ffi6 -06,653 26,201 769.193 10,782 41,158 28.706 757,882 2,587 43,066 32,427 738.927 4.638 42,&l4 ?6.669 749,929 23,3;1 45,161 21,118 770,076 (I1,05~ (?5,920) (26,703) (58259) (58,165) Q8.392) 6,952 14,500 87,584 (19.425) 2,366 345,255 18,942 5.709 11,915 19.061 658,934 6,279 10,000 14,128 700,086 25,758 S 10,264 112,142 109,197 2.686 14,331 2.992 t4,8&t 5.394 4.148 385.721 16.663 12,995 124.814 108,146 2,600 13,919 2,939 16,211 366,910 21.145 13,183 31,355 95,336 9.852 106,674 103.111 2,462 13,42? 2909 73,718 5,742 4,331 377.793 19,101 11,074 119,565 95,110 2.521 12,866 2,470 14,446 - 6440 138,153 (li8270) 28.675 $ 15,628 716.695 17,207 728.930 112,305 (112,550) I14,9G0 2013 2012 290,704 73.025 306,232 4358 6.066 14,514 749.661 4267 696,528 (18,244) 778 $ 306,195 3.297 6.030 15,076 747.339 3,772 G57.i51 (111.980) 3.Oli 2011 ?90,358 65,786 285.120 1,SSM1 7.341 1.437 15.992 720.535 334,533 2120] 7.24] 9,145 9.081 $ 305,814 4.829 &143 3,06 12,796 699,717 33&863 19,779 4,307 7,435 - 283,631 T3.545 302,272 19,742 7.663 13,246 11,867 710.934 345,627 21,305 5.456 03,558) $ 298.742 (6.254 7.461 10,?09 15.491 705,336 329,141 15,628 5.597 (1,583) 2010 2009 7,547 (29,514) - - - 2.590) (20,41 - - 39,345 2.125 sso Special Items Procccdc from sale Net changes in fund balance 270,302 32,91I 2008 2007 $ 11600 4.T% 139,458 (139,458) 29,910 39005 3.5% 145,201 (145,201) 6,952 7.943 165,765 (165,765) 139,461 p39,461) 58,159 14,500 133,903 p33,903) 129,707 (129.950) 2,366 129,617 (129,61 41,477 - 16.2SUJ $ 156,231 (156,231) $ (3115) $ R5.920) $ 7.1% 6.8% 80 (19751) S 7.9% (437591 9.5% $ (6) S 9.4% p6.0261 10.3% $ 38,887 93% $ (20.415) 8.9% CITY OF PROVIDENCE,RHODE ISLAND Schedule 5 Tax Revenues by Source, Governmental Funds Last Ten Fiscal Years (»~od~ed accrual basis ofaccoiintin~ (unaudited) (iy~ thousands) Tangible Taxes Excise Taxes Taa Year Real Estate 2005 2006 2007 203,258 209,251 211,732 28,378 28,154 28,440 17,131 17,768 15,685 248,767 255,173 255,857 2008 2009 2010 2011 2012 2013 2014 226,176 231,186 234,687 234,519 239,855 248,593 251,201 26,087 30,080 34,262 34,032 35,437 35,185 39,006 16,564 16,963 15,559 16,221 24,280 25,939 26,599 268,827 278,229 284,508 284,772 299,572 309,717 316,806 Change 2005-2014 23.6% 37.5% Source: City records. 81 55.3% Total 27.4% CTTY OF PROVIDENCE,RHODE ISLAND Schedule 6 Assessed Value and Estimated Actual Value ofTaxable Property Last Ten Fiscal Yeazs (rn thousands) (unaudited) Tangible Total Taxable 702,310 295,059 -11.86% 8,88Q281 -1.81% 10,718,222 20.70% 10,775,044 0.53% Source: City Records Weighted Average Rate Calculation Tot R/E $ Tangible 9,309,946 1,054,906 Excise 702,310 11,067,162 22% 1,054,906 10% 702,310 6% 1.00 $ 2,464,728 Tax Rate $ 62% $ $ 6,845,218 $ Excise $ Tangible $ Comm. R/E $ ofAssesment Tot Res. R/E 31.89 Tot.Direct Rate $ $ 19.72 36.75 8.18 55.80 532 60.00 3.81 $ Tot. Assesment 37.04 82 3537 3628 34.14 34.6? $ $ $ 9,043,75? 28.87 $ 030% 25.53 $ 10,260,496 26.62 $ 0.21% 35.17 $ 10,229,942 34.75 3536 $ 1.11% 39.57% $ 7,314,600 10,208,780 $ -0.76% $ 21.74% 7,234,371 $ 7,290,006 $ Actual Value $ Percentage of Value $ $ $ $ $ $ Taxable Tac Rate $ (?43,985) Total Direct Growth $ (2,960,325) Percent $ (?,858,134) $ (4,838,398) $ $ $ $ $ $ $ $ $ $ $ $ 701,908 (4,838,398) Value as a Value $ 1,054,906 644,247 (4,781,679) Assessed Actual Assessed $ 969,783 (3,593,637) $ 850,314 616,722 (3,139,525) $ 926,252 610,997 $ 830,243 658,076 $ $ $ $ $ $ $ $ $ $ 746,260 599,020 638,107 (3,055,179) $ 9,309,946 631,015 241,061 $ 9,290,516 657,840 222,344 $ 10,346,045 636,126 $ 10,358,912 $ 13,657,654 638,720 $ ?014 13,664,004 $ 2012 ?013 9,651,377 13,721,337 $ ?011 9,484,121 9,496,709 $ 2010 $ 2009 $ ?008 $ ?007 $ 2006 $ ?005 Exempfions $ Vehicle $ Motor Property $ Personal Property $ Real Year $ Fiscal Estimated 8,570,428 85.06% 8,818,102 82.04% 8,511,287 85.94% 10,295,260 99.16% 10,316,601 99.16% 10,347,414 99.16% 9,120,363 99.16% 8,955,507 99.16% 10,809,018 99.16% 10,891,457 98.41% CITY OF PROVIDENCE,RHODE ISLAND Schedule 7 Principal Property Taxpayers Current Year and Ten Years Ago (unaudited) inns 2014 Percentage Percentage ofTotal of Total Taxes City Percentage Ta~cable Taxpayer Assessed Value Narragansett Electric Company $ Taxable of Total Rank Taxes Taxable Assessed Taxpayer Value Assessed Rank Value 57,432,800 1 4.79596% Narragansett Electric Go 163,834,024 1 1.54% Westminster Partners LLC 58,470,700 2 0.97705% Fleet Center Associates 87,946,400 2 0.82% ONINI Rhode Island LLC 72,362,700 3 0.89095% Capital Properties Inc 63,433,308 Capital Properties Inc 65,179,336 4 0.76140°/a RI Hospital Trust NaU Bank 36,440,000 0.59% 034% 0.30% $ One Financial Holdings LLC 50,693,500 5 0.72578% Blue Cross And Blue Shield Of Rhode Is 32,238,937 3 4 5 One Citizens Plaza Holdings LLC 40,694,800 6 0.53117% Textron Realty Corporation 31,233,600 6 0.29% Textron Realty Corporation 41,539,000 7 0.47316% Providence Gas Company 30,558,889 0.29% Athena Providence Place 45,339,800 8 0.44168% The Providence Journal Company 40,493,693 7 $ Motiva Enterprises LLC 27,056,800 9 0.43338% Laurelmead Cooperative 28,497,051 9 0.27% Regency Plaza 39,376,800 10 0.42147% Providence Realty Associates LP 27,895,600 10 0.26% High Rock Westminster Street 29,686,200 11 0.41434% Avalon Properties Inc 24,793,041 11 0.23% 10 Memorial Boulevazd Owner LLC 29,931,973 12 0.34711% Edward E Zuker(trstee) 24,003,398 12 0.23% Avalon Properties Inc 31,984,300 13 0.34677% One Twenty One South Main Street Llc 19,997,501 13 0.19% Laurelmead Cooperative 32,092,310 14 0.33918% Alpine Realty Providence LLC 18,929,800 14 0.18% CJi1FIII MJH Providence LLC 25,665,600 15 0.32181% Home Depot Usa Inc 17,471,085 15 0.16% ARC Hospitality Providence LLC 24,653,000 16 029240% One Financial Center Plaza LLC 16,843,706 16 0.16% AG-FINCOV Biltrnore Owner LLC 21,905,100 17 028935% Historic Hotel Partners OfProv Lp 16,799,701 17 0.16% 261,LLC 26,356,626 18 027956% Jefferson At Providence Place Apartmem 16,769,568 18 0.16% 380 Westminster Street LLC 18,872,400 19 020057% Foundry Parcel Fifteen Associates Llc 16,633,400 19 0.16% One Financial Center Plaza LLC 18,660,500 20 0.19872% Elizabeth T Corson Weshninster Trust 15,641,892 20 0.15% Total $ 757,954,245 13.48% Source: City Records total levy for 2014 ta~c roll $346,472,563.72 total levy for 2004 tax roll $256,688,743.04 83 $ 730,454.592 0.38% 6.85% CITY OF PROVIDENCE,RHODE ISLAND Schedule 8 Property Tax Levies And Collections Last Ten Fiscal Years (zry~audifed) Collected Within the Fiscal Year of the Levy Fiscal Year Ended June 30; 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Taxes Levied for the Tax Year $ $ $ $ $ $ $ $ $ $ 256,688,743 259,979,819 261,951,088 275,853,725 287,281,144 294,186,862 307,014,942 324,460,407 332,768,119 340,814,523 Amount $ $ $ $ $ $ $ $ $ $ 240,140,679 243,165,192 246,952,069 255,874,916 269,559,441 276,463,184 277,131,464 299,707,126 310,510,342 317,730,599 Source: City Tax Collector Records 84 Total Collections to Date Collections in Subsequent Years Percentage of Levy 93.55% 93.53% 94.27% 92.76% 93.83% 93.98% 90.27% 92.37% 93.31% 93.23% $ $ $ $ $ $ $ $ $ $ 8,669,275 10,031,655 9,822,963 13,124,276 11,230,416 9,986,307 7,621,693 9,431,294 14,879,354 - Amount $ $ $ $ $ $ $ $ $ $ 248,809,954 253,196,847 256,775,032 268,999,192 280,789,857 286,449,491 284,753,157 309,138,420 325,389,696 317,730,599 Percentage of Levy 96.93% 97,39% 98.02% 97.52% 97.74% 97.37% 92.75% 95.28% 97.78% 93.23% CITY OF PROVIDENCE,RHODE ISLAND Schedule 9 Ratios of Net General Bonded Debt Outstanding by Type Last Ten Fiscal Years (unaudited) Business-Type Activities Governmental Activities Fiscal Yeaz General Obligation Bonds ?005 2006 2007 ?008 127,250 119,215 112,845 105,075 67,315 66,500 64,525 62,445 27,675 28,285 26,260 23,755 182,930 173,474 222,415 361,011 50,987 59,994 53,453 49,300 4,974 4,215 3,434 2,546 ?009 2010 2011 2012 2013 2014 96,735 88,260 80,935 73,S1S 105,661 99,501 6Q295 58,080 73,140 68,860 65,934 59,799 21,150 13,435 15,575 12,585 9,450 6,170 358,750 360,663 411,617 383,487 363,919 333,344 47,628 52,286 45,433 39,554 35,127 30,506 2,336 798 585 x,776 2,777 2,474 Revenue Bonds Special Oblic~+ation Tvc Increment PPBA Debt Capital Notes and Leases Notes Payable Net Bond Premium Defesed Items from Financing (8,099) (3,477) (4,610) (5,184) - (4,666) (4,184) (3,792) (3,284) (722) (363) 1,906 1,788 6,276 Note: Details regarding the City's outstanding debt may be found in the notes to the basic financial statements " Amounts were included m general obhgahon bonds. ** Information not available. 85 Line of Credit 1,104 i85 300 - Revenue Bonds Capital Leases Tota] Primary Government Percentage of Personal Income Net Debt Per Capita Net General Obligation Bonds to Estimated Actual Value 22,437 18,070 11,879 45,043 5,009 3,865 2,950 2,000 431,582 47Q526 493,451 645,991 ** ** '~* "'* 719 674 638 1731 t.48% 1.35% 133% 0.36% 43,573 55,299 53,010 52,439 78,037 74,269 990 - 626,791 633,821 676,503 637,183 662,021 611,976 ~~ *« *~ ** Mk 542 495 4326 *• +s 0.30% 0.73% 0.67% 0.61% p gg~ *• "" 0.33% CITY OF PROVIDENCE,RHODE ISLAND Schedule 10 Direct Governmental Activities Debt For the Year Ended June 30, 2014 (i~»auc~ited) (in thousands) Debt Outstanding Governmental Unit General obligation debt: General obligation bonds Revenue bonds Special obligation tax increment Notes payable Capital leases Capital notes PPBA debt-City PPBA net bond premium Deferred items from refunding Total dij•ect debt $ $ Note: The City ofProvidence is not subject to the debt of overlapping governments. 86 99,501 59,799 6,170 2,474 9,663 20,843 333,343 6,276 (363) 537,706 CITY OF PROVIDENCE,RHODE ISLAND Schedule 11 Legal Debt Margin Information For the Year Ended June 30, 2014 (urtaa~dited) (in tl~oarsands) Legal Debt Margin Calculation for Fiscal Year 2014 10,785,7]2 Taxable Property 323,251 Debt limit(3% of taxable property) Debt applicable to limit: General obligaton bonds Less: debt not subject to 3%limit Total net debt applicable to limit 99,500 60,435 39,065 $ Legal debt margin 87 284,186 CITY OF PROVIDENCE,RHODE ISLAND Schedule l2 Legal Debt Margin Information Last Ten Fiscal Years and Current Year Computation (unaudited) Total net debt applicable to limit Legal debt margin Total net debt applicable to the limit as a percentage of debt limit Debt outstanding issued outside the 3% debt limit* 294,163 306,899 309,438 266,408 2013 2014 273,279 321,547 323,251 $ 219,400 2012 $ 210,700 $ 206,500 $ 2010 $ 2009 $ 2008 $ 2007 $ 2006 $ $ Debt limit 2011 2005 27,500 23,400 19,400 16,247 13,078 9,914 6,750 4,340 41,235 39,065 179,000 187,300 200,000 277,916 293,821 299,524 259,658 268,939 280,312 284,186 15% $ 99,800 12% $ 95,700 6% 10% $ 93,400 $ 88,828 4% $ 83,657 3% $ 78,346 3% $ 74,185 2% $ 69,475 15% $ 65,950 * The State ofRhode Island General Assembly has, by Special Act, permitted the City to incur indebtedness outside the 3%debt limit. This amount excludes water and sewer bonds that are deemed self-supporting. 88 14% $ 60,435 CITY OF PROVIDENCE,RHODE ISLAND Schedule 13 Pledged-Revenue Coverage Last Ten Fiscal Years (trnat~dited) Redevelopment Revenue Bonds Water Supply Board Fiscal Year Utility Service Charges Less Operating Expenses Net Available Revenue 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 48,807 52,432 52,749 56,032 59,575 54,976 64,017 61,726 61,070 62,872 40,871 42,446 45,181 46,410 48,796 50,845 46,054 49,212 50,305 54,394 7,936 9,986 7,568 9,622 10,779 4,131 17,963 12,514 10,765 8,478 Debt Service Principal Interest 516 509 537 56l 590 618 61 115 na na 207 183 158 131 l02 71 24 41 na i~a Coverage 11.00 14.43 10.89 13.90 15.58 6.00 21133 80.22 i~a na Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Collections G,858 - Charges 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 4,885 1,824 - Operating Expenses 8,949 2,241 - Net Available Revenues (4,064) (417) - Debt Service Principal Interest 235 ;'* "• »ss "' •s• s** r*• •" ~#s ' * ' • ' * * ' • • - Coverage - Providence Public Building Authority Revenue Civic Center Bonds Fiscal Year Debt Service Principal Interest 151 - Coverage (10.4) - - - * Bond was filly reftmded in 2005. ** Not available. •** Note: Tlie Civic Center Authority was sold on December 5, 2005. 89 Fiscal Year 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Collections 8,197 7,825 10,988 15,712 9,835 16,362 18,548 20,966 20,020 19,652 Debt Service Interest Principal 9,838 10,516 11,058 27,874 15,261 20,407 25,491 23,130 24,568 25,663 9,189 8,713 9,829 13,124 16,675 16,715 17,429 19,607 18,368 17,486 Coverage 0.43 0.41 0.53 0.38 0.31 0.44 0.43 0.49 0.47 0.46 CITY OF PROVIDENCE,RHODE ISLAND Schedule 14 Demographic and Economic Statistics Last Ten Fiscal Years (unaudited) Fiscal Year Ended June 30 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Population*** 176,862 176,862 176,862 178,400 178,400 178,400 178,400 178,042 178,042 178,432 Personal Income (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) Per Capita Income**** $ $ $ $ $ $ $ $ 21,978 (1) (1) 26,867 26,867 26,867 26,867 20,735 19,489 21,512 ~'~ Unavailable * Source: Rhode Island Department of Labor and Training ** RI Department of Education *** Source: U.S. Bureau of the Census **** Source U.S. Bureau ofEconomic Analysis 90 Median Age*'~* 30.4 30.4 30.4 28.1 28.1 28.2 28.2 28.5 28.5 28.7 School Enrollment** 25,615 25,190 24,494 24,494 23,710 23,710 23,500 23,520 23,872 23,827 Unemployment(*) Rate 6.3% 6,9% 6.1% 10.5% 13.1% 11.7% 10.9% 12,9% 11.1% 9.9% CITY OF PROVIDENCE,RHODE ISLAND Schedule 15 Principal Employers 2013 and 2004 (unaudited) 2004 2013* Employer Employees Bro~mn Uuiversity Rhode Island Hospital Life Span (Mgnrt. Svcs. including Miriam Mgntt Svcs.) Women &Infants Hospital Roger Williams Medical Center The Miriam Hospital Belo Corp/Providence Journal Mars 2000 Providence College AAA SoutUern New England Johnson &Wales University Butler Hospital H. Carr &Sons Inc. National Grid Employment 2000 Verizon Wireless Gilbane Building Co. Wal-mart Stores Jewel Case Corp. Nordstrom Inc. 4,600 4,200 1,990 1,800 1,470 1,263 870 850 799 700 700 699 500 450 400 400 400 350 300 300 * most recent information available Sources: Commerce RI,(flk/a Rhode Island Economic Development Corp.) 91 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Percentage of Total City Employment 4.30% 3.93% 1.86% 1.68% 138°/a 1.18% 0.81% 0.80% 0.75% 0.66% 0.66% 0.65% 0.47% 0.42% 037% 0.37°/a 0.37% 0.33% 0.28% 0.28% Employees Rank Percentage of Total City Employment 3,251 6,063 2 1 2.78% 5.19% 2,800 1,340 2,161 964 4 6 5 ll 2.40% 1.15% 1.85% 0.82% 1,200 800 8 16 1.03% 0.68% 1,304 10 1.12% CITY OT PROVIDENCE,RHODE ISLAND Schedule 16 Full-Time Equivalent Employees By Functional Program Last Ten Fiscal Years (:rnaudrtecf) 2007 2006 2005 IS 15 15 15 11 2 1 9 16 19 13 27 23 4 4 5 15 18 15 ll 2 1 9 14 23 13 25 23 4 5 5 15 18 15 11 2 1 9 14 18 13 26 24 5 5 6 15 l5 15 11 2 1 11 12 24 5 25 24 5 5 7 15 16 15 11 4 1 11 12 24 5 24 24 5 5 6 15 15 1 11 13 22 7 23 23 5 5 6 13 15 1 11 13 22 7 23 23 5 5 5 14 17 1 10 12 30 0 22 23 5 5 5 18 16 1 9 12 23 7 22 23 5 5 5 l6 18 1 9 12 30 0 22 23 5 5 5 18 16 57 56 60 61 44 21 31 14 48 11 31 44 20 31 14 48 I1 31 44 20 31 14 49 11 33 47 20 37 14 45 11 24 52 20 37 16 39 14 25 581 8 487 76 592 7 487 78 592 7 484 78 563 7 485 78 3,345 5 041 - - - - - 10 8 12 48 10 44 9 I1 13 3,333 5 016 - - - - - - - - - - - 10 7 12 48 9 45 8 12 12 - - - - - - - - 92 3,300 5 086 - 3,284 5 086 - 7 46 5 3 4 3 8 ll 5 3 3 157 4 952 - 7 54 5 3 2 3 8 12 5 3 3 236 5 023 - 7 50 4 1 3 2 8 13 5 3 3 226 4,945 - 6 44 4 1 7 1 8 ll 11 3 3 224 4,887 10 7 12 50 10 45 9 12 13 - 5 47 4 1 7 1 8 11 5 3 3 241 4,993 7 7 ]2 50 ]0 117 9 13 49 - 8 7 13 50 12 120 9 13 49 - 8 8 12 50 12 1 9 13 60 - 8 8 12 50 12 1 9 13 60 - - 8 8 11 52 10 3 9 8 55 - 8 8 8 50 9 3 7 9 42 - 8 7 8 50 9 0 7 9 57 - 589 8 489 76 - 594 8 467 76 6 - 594 9 450 76 6 - 562 9 433 73 6 - 529 9 438 69 5 - 544 9 507 69 5 - 31 15 51 I1 30 - 31 15 49 ]0 32 - 31 15 51 6 31 - 31 13 49 8 31 44 21 31 14 48 11 30 Source: City Records 15 - - - 15 - 2013 _ & Functions/Program Executive, Legislative, Judicial and Finance: City Council City Council Administration Intemal Auditor City Sergeant City Clerk Personnel Finance Computer Services Legal Courts Retirement Board Tax Assessment City Treasurer City Collector City Assessor Recreation and Public Land and Parks: Neighborhood Parks &Recreation Svs Recreation Zoo Forestry Parks Greenhouse Public Property Public Safety: Police Department Commissioners Office Firefighters' DepaRment Communication Emergency Mgmt./Homeland Security Public Works: Administration Engineering Environmental Control Highway and Bridge Maintenance Sewer Maintenance Miscellaneous Garage Traffic Engineering Building Inspection Miscellaneous: Recorded Deeds Planning Develoment Arts, Culture &Tourism Human Relations Human Services PERA Board of Canvassers BoardofLicenses Vital Statistics City Archivist School Department Total Full-Time Equivalent Employees as of June 30 2008 2012 2011 2010 2009 2014 3,342 5 004 CTTY OF PROVIDENCE,RHODE ISLAND Schedule 17 Operating Indicators By FunctionlProgram Last Ten Fiscal Years (unaudited) (in thousands) Function/Pro~am Fiscal year 2010 2009 2014 2013 2012 2011 Police: Calls for service 115 114 118 125 139 145 138 149 Fire: Total fire calls 42 41 44 10 11 14 13 14 13 13 - - - 31 31 27 27 26 25 25 8 $ 198,251 10 $ 146,236 74 77 Total rescue calls ~ Building safety: Total buflding permits Total value all permits Public service: Residenrial garbage collected (ton) $ 7 8 8 155,160 $ 215,485 $ 162,913 70 71 73 Source: City Records * Reported as totalfzre and rescue 93 2008 8 7 $ 234,191 $ 217,629 79 81 2007 3,210 TBD TBD 2006 190 8,250 $ 251,400 $ 69 2005 190 7,759 172,700 69 CITY OF PROVIDENCE,RHODE ISLAND Schedule 18 Capital Asset Statistics By Function/Program Last Ten Fiscal Years (i~na~dited) Function/Program Public Safety: Fire, Fire Stations Fire trucks Public Works: Bridges Streets (Miles) Manholes Catch Basins Drain Inlets Parks &Recreation: Acreage Parks Golf Course Baseball/Softball Diamonds Greeiiliouse Soccer/Football Fields Water Parks Museum S~vinuning pools Recreation Centers Zoo Community Centers Water: Lakes Wastewater: Sanitary Sewer Lines (miles) 2014 2013 2012 2011 2010 2009 2008 15 23 15 23 15 23 15 23 15 23 15 23 15 23 27 370 20 12 4 27 370 20 12 4 27 370 20 ]2 4 27 370 20 12 4 27 370 20 12 4 27 370 20 12 4 1,300 124 2 40 6 11 9 1 6 ]0 1 1,300 124 2 40 6 11 9 1 6 10 1 1,300 124 2 40 6 11 9 1 6 10 1 1,300 124 2 40 6 ll 9 1 6 10 1 1,300 124 2 40 6 ll 9 1 6 10 1 10 10 10 10 300 300 300 300 Source: City Records 94 2007 2006 2005 15 23 15 28 15 28 27 370 20 12 4 27 370 20 12 4 53 417 20 12 53 417 20 12 1,300 124 2 40 6 11 9 1 6 10 1 1,300 124 2 40 6 11 9 1 6 10 1 1,300 124 2 40 6 11 9 1 6 l0 1 141 1 1 1 1 3 1 6 12 1 14l 1 1 1 l 3 1 6 12 1 10 10 10 10 10 10 300 300 300 300 415 415