INCORPORATED VILLAGE - Garden Citygardencityny.net/vertical/sites/{82C80390-C4CA-486E-AA10...INCORPORATED VILLAGE OF GARDEN CITY, ... demonstrated by the Planning Commission and the

INCORPORATEDVILLAGE

OFGARDEN CITY, NEWYORK

COMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE YEAR ENDED

MAY 31 , 2012

INGORPORATED VILLAGE OF GARDEN CITY, NEW YORK

COMPREHENSIVE ANNUAL FINANCIAL REPORTFOR THE YEAR ENDED MAY 31 , 2012

Prepared by:

Office of the Village AuditorJames E. OlivoVillage Auditor

INCORPORATED VILLAGE OF GARDEN CITYCOMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED MAY 31 ,2012TABLE OF CONTENTS

INTRODUCTORY SECTION

Letter of Transmittal............

GFOA Certificate of Achievement

Organizational Chart..

Listing of Village Officials

FINANCIAL SECTION

1-5

..7

..8

..9

11-12

14-27

31

32 33

37

38

....39

40-41

.,..42

43-72

74 80

81

84

(Continued)

I ndependent Auditors' Report

Management's Discussion and Analysis

Basic Financial Statements:

Government-wide Financial Statements:

Statement of Net Assets......

Statement of Activities

Fund Financial Statements:

Balance Sheet - Governmental Funds...

Reconciliation of the Governmental Funds Balance Sheet tothe Statement of Net Assets

Statement of Revenues, Expenditures, and Changes ln FundBalances - Governmental Funds ..............

Reconciliation of the Governmental Funds Statement of Revenues,Expenditures, and Changes in Fund Balances to the Statement

of Activities

Statement of Net Assets - Proprietary Funds...

Statement of Revenues, Expenses, and Changes lnNet Assets - Proprietary Funds

Statement of Cash Flows - Proprietary Funds

Statement of Assets and Liabilities - Fiduciary Fund

Notes to Financial Statements..............

Required Supplementary lnformation:

Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget and Actual - General Fund........

Schedule of Funding Progress for Other Postemployment Benefits (OPEB)

Other Supplementary I nformation:

34

35

36

Statement of Changes in Agency Assets and Liabilities - Fiduciary Fund

INCORPORATED VILLAGE OF GARDEN CITYCOMPREHENSIVE ANNUAL FINANCIAL REPORT

YEAR ENDED MAY 31 ,2012TABLE OF CONTENTS

STATISTICAL SECTION

Financial Trends:

Net Assets by Component............

Changes in Net Assets

Fund Balances of Governmental Funds

Changes in Fund Balances of Governmental Funds...............

Revenue Capacity:

Assessed Value, State Equalization Rate, and EstimatedFull Value of Real Property

Direct and Overlapping Property Tax Rates

Principal Property Taxpayers

Property Tax Levies and Collections .........

Debt Capacity:

Ratios Outstanding Debt by Type....

Ratios of General Bonded Debt Outstanding

Direct and Overlapp¡ng Governmental Activities Debt

Debt Limit Margin lnformation

Demographic and Economic lnformation:

Demographic and Economic Statistics ....

Principal Employers

Operating I nformation:

Full-Time Equivalent Government Employees by Function.

Operating I ndicators by Function/Program

Capital Asset lndicators by Function/Program

...86-87

...88-91

...92-93

...94-95

....96-97

....98-99

....... 100

....... 101

102

103

104

105

106

107

......108

110-111

112-113

MAYoR

DONALD T. BRUDIE

INCORPORATED

Vnr-rcn oF G¡.nonx Crry351 STEWA.RTAVE'NUE

G¡.nnnN CrrY, N.Y. 1.1530-4528

WEB SITE: GARDENCITYNYNET

TELEPHONE (sr 6) 465-4000

FAX (516) 742-5223

TRUsTEEs

JOHN J WATRAS

NICHOLAS P EPISCOPIA

ANDREW J. CAVANAUGH

LAUBENCE J. OUINN

DENNIS C DONNELLY

BRIAN C. DAUGHNEY

JOHN A. DEIVIARO

VlLuee Aou¡rursrnaron

ROBERT L, SCHOELLE, JR

November 28,2012

To Mayor Brudie, Board of Trustees and Residents of the lncorporated Village of Garden Glty

Attached is the Comprehensive Annual Financial Report for the lncorporated Village ofGarden City, New York (the "Village") for the 2011-2012 fiscal year which ended on May 31, 2012. ltis the responsibility of the Village to ensure the accuracy of both the data and the disclosures madein the attached report. Accordingly, it has been prepared in conformity with Accounting PrinciplesGenerally Accepted in the United States of America as they apply to governmental units and to thebest of our knowledge is correct in all material respects. We believe this repoil fairly presents thefinaneial position of the Village and the results of operations for the year ended May 31 , 2012. Alldisclosures necessary to gain a full and complete understanding of the Village's financial activitieshave been included.

This report includes all the funds of the Village (the primary government) and its componentunit, the Garden City Public Library (the "Library"). Activities considered to be part of the reportingentity have been determined by the application of criteria set forth in the Governmental AccountingStandards Board (GASB) Statement No. 14, "The Financial Reporling Entity," as amended. Thebasic, but not the only criteria for inclusion in the financial statements of the reporting entity iswhether the component unit is financially accountable to the primary government. Discretepresentation via a separate column is used in incorporating the financial statement of the Library in

the statements of the Village.

The Management Discussion and Analysis (MD&A), located in the financial section followingthe independent auditors' report, provides an introduction, overview, and analysis of the basicfinancial statements. The MD&A compliments this letter of transmittal and should be read in

conjunction with it.

The Village is a full service municipality. lt provides police, fire, sewer, water, sanitation,parks, recreation, library, building inspection and street maintenance services. Attendant with theabove ser'r'ices, administration is provided including accounting, purchasing, human resources,maintenance of plant and equipment, Village Justice Court and other general services. Theseservices are provided through the Village's General Fund, which is the main operating fund of theVillage.

The Village enterprise operations consist of three distinct activities: municipal water supply,swimming pool, and indoor tennis facilities, Each of these operations receives no funding from anytax base, rather their income is derived from sales of goods, or in the case of the recreation facilities,annual subscriptions.

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Historv

The Village's history began in 1869 when Alexander T. Stewart, a wealthy merchant,purchased approximately 7,000 acres of land for his own garden community. The Village wasincorporated in 1919 and since then comprehensive planning and zoning have blended a modernbusiness core and shopping district with a residential community of private homes, town houses,apartment buildings and condominiums.

Economic Gondition and Outlook

The Village is a suburban residential community with a population of approximately 22,400.|tis located in Nassau County, thirty miles east of Manhattan. More than half of the Village's residentsare employed in the managerial or professional sectors of the economy, primarily in the finance,insurance, or real estate industries.

Although the economic consequences resulting from Wall Street declines during 2009-2010have impacted the community, it appears as if the high value of property in the Village remainsrelatively stable. The State equalization rate has remained unchanged, reflecting this trend.

The residential real estate market within Garden City remains strong as the Village isconsidered to be one of the region's most desirable residential communities, Factors whichcontribute to Garden City's popularity include the quantity and high quality of municipal services andfacilities as well as our school district consistently being rated one of the best in New York State.

The desirability of the Village as a prime business location is demonstrated by the trendtoward reinvestment in existing buildings in the central business corridor. Several of these existingbuildings have been leased to Winthrop University hospital for use by it's physicians as medicaloffices. The proximity of a diverse selection of restaurants, department stores, shops and personalservice businesses enhances the desirability of the business district and contributes to the continuedstrength of the office market.

That same diversity attracts customers from the surrounding communities and contributes tothe continued success of the retail marketplace. National stores such as Lord and Taylor and Searsprovide a positive presence and continue to attract customers to the area.

Balancing of business development (commercial, retail, and personal service) along with thequality of life issues, so important to a residential community, is vital to the Village Board ofTrustees. The character of Garden City is clearly shaped by its residential nature and yet asubstantial percentage of the tax base is derived from business enterprises operating within theVillage. The commitment to a continual planning process necessary to maintain this balance isdemonstrated by the Planning Commission and the Architectural Design Review Board, both ofwhich review all building expansion projects within the Village. The activities of these groups alongwith the diligent oversight of the Board of Trustees via site plan approval has been and continues tobe critical to maintaining this balance and protecting the character of the Village.

The Village's prudent handling of its financial responsibilities has earned an Aaa credit ratingfrom Moody's lnvestors Service, the highest rating given to municipal debt, which permits the Villageto sell municipal bonds at a favorable interest rate, making them less of a financial burden to thetaxpayers.

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Maior lnitiatives

Current Year

Annually the Village initiates capital planning through the establishment of a five-year plan.During 2012, projects involving sidewalk and curb restoration, road maintenance, and tree plantingwere all continued.

The Village has made a long-term commitment to maintaining its infrastructure, which isevidenced by the annual funding of the above projects. Several major renovations of our centralbusiness district's parking areas were completed. Due to the favorable borrowing market and in aneffort to reduce the immediate burden on taxpayers, these renovations will be financed through a

future bond offering. This financing was completed in March 2012. The Village is pleased that ourMoody's lnvestors Service credit rating was upheld at Aaa.

ln the current year, the renovation of our Police Headquarters, financed by previously issuedbonds, was completed. ln addition, major improvements to the Village's Swimming Pool facility,consisting of a renovation of the filtration systems, a children's water play area and new playgroundequipment with safety surfaces and shade structures, were completed.

Water treatment facilities, an area where continual investment is necessary to ensure thesafety of our water supply, were again maintained and updated.

Future Years

The 2012-2013 Capital Plan has continued the existing road maintenance program ata oneand a half miles per year resurfacing schedule. This schedule will allow the Village to maintain roadson a 40 year cycle, with future funding planned to be provided through appropriations, therebyavoiding bonding for continued maintenance items. An annual appropriation is also being maintainedto fund sidewalk repair, curb replacement and tree replacement in an effort to keep our bonded debtat the lowest possible level.

For 2012-2013, appropriations for capital items have been increased in an effort to return tothe pay as you go financing philosophy which served the Village so well for so long.

Financial lnformation

Village finances are accounted for through its various funds. All property taxes and non-taxrevenues are accounted for in their respected fund. All current operating expenditures are madefrom the funds pursuant to appropriations by the Village Board of Trustees.

lnternal Controls

The Mayor, Board of Trustees and the Village Administrator - Treasurer are responsible forimplementing and maintaining a secure internal control system. Recognizing this, the Board ofTrustees has established the position of Village Auditor to function as an lnternal Auditor. The dutiesof this position include the continual examination of the current system of internal controls to assesstheir adequacy and the development of new controls as necessary. This system of control ensuresthat the assets of the Village are protected from loss, theft, and/or misuse. As with any system ofinternal control, the structure is intended to provide reasonable cost effective controls throughsegregation of duties, enforcement of policy regulations, and periodic field audits.

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Financial (continued)

lnternal Gontrols (continued)

ln addition, the Village maintains controls in order to ensure compliance with the budgetaryprovisions embodied in the annual appropriated budgets approved by the Board of Trustees. The

Village operates in an automated data processing environment making strict budgetary controlspossible, Once the Village Board of Trustees has adopted a budget, line item control is enforcedthrough a computerized purchase requisition system. This prevents the over expenditure of any line

item by denying the requisition unless there are sufficient funds in the budget for that item. Activities

of all funds, except the Capital Projects and Agency Funds, are appropriated through this annualbudget process and controlled through the purchase requisition system.

The Capital Projects Fund does not adopt an annual budget since the revenues and

expenditures recorded in this fund span more than a single fiscal year. The Capital Projects Fund is

approved through resolutions authorizing individual projects which remain in effect for the life of theproject.

An examination of the Village's finances is conducted by lndependent Auditors on an annualbasis. The financial statements enclosed have been audited by the firm of Albrecht, Viggiano,Zureck & Company, P.C. This audit and the comments and recommendations of the independentauditor are viewed as an essential element of prudent financial management by the Board of

Trustees. An Audit Committee consisting of three members of the Board meets twice annually with

the independent auditors to discuss any items of concern.

ln addition, the New York State Comptroller's Office periodically audits the Village to ensurecompliance with State Laws regulating Villages and Municipalities. That State audit includes areview of the report of the lndependent Auditors and an additional look at areas of concern, if any.

Emplovee Relations

The Village provides services through approximately 300 full time employees. With the

exception of department heads and certain managerial and confidential employees, all full time

employees are covered by three collective bargaining agreements.

An agreement with the Garden City Unit of the Nassau Chapter of the Civil ServiceEmployees Association, lnc. covers all Village employees except sworn employees of the Fire and

Police Departments, department heads and certain managerial and confidential employees. Thiscontract was settled and expires on May 31, 2013. All sworn employees of the Police Department,with the exception of the Chairman of the Board of Police Commissioners, are covered by a contractwith the Garden City Police Benevolent Association, This contract was settled as a result of an

arbitrator's decision and expires on May 31, 2014. Career firefighters in the positions of firefighterand fire lieutenant are included within an agreement with the Professional Firefighters Association of

Nassau County, which expired on May 31, 2010. Collective bargaining is continuing with the

Professional Firefighters Association of Nassau County and the Civil Service Employees AssociationSupervisory group.

Awards

The Government Finance Officers Association of the United States and Canada (GFOA)

awarded a Certificate of Achievement for Excellence in Financial Reporting to the Village for its

comprehensive annual financial report for the year ended May 31 , 2011. ln order to be awarded aCertificate of Achievement, a government must publish an easily readable and efficiently organized

comprehensive annual financial report. This report must satisfy both accounting principles generally

accepted in the United States of America and applicable reporting requirements.

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Awards (continued)

A Certificate of Achievement is valid for a period of one year only. We believe that ourcurrent comprehensive annual financial report continues to meet the Certificate of AchievementProgram's requirements and we are submitting it to the GFOA to determine its eligibility for anothercertificate.

Acknowledqment

The preparation of this comprehensive annual financial report was made possible throughthe assistance of the Village department heads and staff. ln addition, Albrecht, Viggiano, Zureck andCompany, P,C, and Liberty Capital Services, LLC were also instrumental in the preparation of thisdocument. We would like to express our sincere appreciation for the efforts made by all involved,

Respectfully submitted,

Robert L. Schoelle, JrVillage Administrator

James E. OlivoVillage Auditor

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THIS PAGE IS INTENTIONALLY LEFT BLANK

-6-

Incorporated Village

of Garden Cify, New York

Preserited to

For its Comprehensive Annual

Finaucial RePort

for the Fiscal Yea¡ Ended

May 31, 2Û1I

A Cercificate of Achievcme'¡rt for Excellence in FinancialRoporting is presented by thr: Govemment Fiuance Officers

Association of the Uniied States and Canada togovernment rmits and public ønployoo reti¡erncnt

sys1ems vlhose comprehcnsive anuual financialreports (CAFRs) achieve the higbeststandards in govrlrnment accounting

and financial reportmg.

Certificate ofAchievementfor Excellencein FinancialReporting

#rVÊtu*President

Executive Director

-7 -

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INCORPORATED VILLAGE OF GARDEN CITY, NEW YORKLISTING OF VILLAGE OFFICIALS

MAY 31 ,2012

The Mayor and the seven member Board of Trustees are the governing body of thelncorporated Village of Garden City. The Mayor and the Board of Trustees appoint the VillageAdministrator who serves as the chief administrative officer and fiscal head of the lncorporated Villageof Garden City's government and is responsible for the proper administration of municipal affairs andcoordination of departmental activities. The principal department heads are appointed annually by theMayor, with ratification by the Board of Trustees.

The Mayor and Trustees are elected for two year terms. The terms are staggered so that fouroffices are filled each year.

Certain Village Officials

Donald T. Brudie....Nicholas P. ep¡scopiä...John J. WatrasAndrew J. Cavanaugh..Dennis C. Donnelly.......Laurence J. Quinn ........Brian C. Daughney.......John A. DeMaroRobert L. Schoelle, Jr...

Ernest J. CipulloCharles A. CavarraMichael D. FilipponKevin A. Ocker......

Robert J. Mangan.James E. Olivo.....Brian S. Ridgway..Carolyn J. Voegler

MayorTrusteeTrusteeTrusteeTrusteeTrusteeTrusteeTrusteeVillage Administrator and

TreasurerCommissioner of PoliceFire Department ChiefSuperintendent of BuildingsCommissioner of

Recreational and CulturalAffairs

Director of Public WorksVillage AuditorVillage ClerkLibrary Director

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TH¡S PAGE INTENTIONALLY LEFT BLANK

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CERTIFI ED PUBLIC ACCOUNTANTS

INDEPENDENT DITORS'REPORT

Mayor and Board of Trusteeslncorporated Village of Garden CityGarden City, New York

We have audited the accompanying financial statements of the governmental activities, thebusiness-type activities, the discretely presented component unit and each major fund of thelncorporated Village of Garden City, New York, as of and for the year ended May 31 , 2012, whichcollectively comprise the lncorporated Village of Garden City's basic financial statements as listed inthe table of contents. These financial statements are the responsibility of the lncorporated Village ofGarden City's management. Our responsibility is to express opinions on these financial statementsbased on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United Statesof America. Those standards require that we plan and perform the audit to obtain reasonable assuranceabout whether the basic financial statements are free of material misstatement. An audit includesexamining, on a test basis, evidence supporting the amounts and disclosures in the financialstatements. An audit also includes assessing the accounting principles used and the significantestimates made by management, as well as evaluating the overallfinancial statement presentation. Webelieve that our audit provides a reasonable basis for our opinions.

ln our opinion, the financial statements referred to above present fairly, in all material respects, therespective financial position of the governmental activities, the business-type activities, the discretelypresented component unit and each major fund of the lncorporated Village of Garden City, NewYork, as of May 31,2012, and the respective changes in financial position and, where applicable,cash flows thereof for the year then ended in conformity with accounting principles generallyaccepted in the United States of America.

As described in Note 1.H to the basicfinancial statements, the lncorporated Village of Garden City,New York adopted the provisions of Governmental Accounting Standards Board No. 54, "FundBalance Reporting and Governmental Fund Definitions" as of and for the year ended May 31 , 2012.

PERSONAL SERVICE, TRUSTED ADVICE

ALBRECHT, VIGGIANO, ZURECK & CON/IPANY P.C.

245 PARK AVENUE, 24TH FLOOR 25 SUFFOLK COURTNEWYORK, NY 101ó7 HAUPPAUGE, NY 11788-3715

4 A T:212.792.4075 T ó31.434.9500 F: ó31 .434.9518- tt-

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www.avz.comINDEPENDENT ò¡EÑlBER OF BKR INTERNATIONAL

Accounting principles generally accepted in the United States of America require that the

manageméni's discussion and analysis, scheduling of funding progress for other postemployment

benefits healthcare costs and the budgetary comparison information 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 financiál 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

Staies 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.

Our audit was conducted for the purpose of forming opinions on the financial statements that

collectively comprise the lncorporated Village of Garden City, New York's basic financial statements as

a whole. The introductory section, other supplementary information and statistical sections are

presented for purposes of additional analysis and are not a required part of the basic financial

statements. The other supplementary information, as listed in the table of contents, are the

responsibility of management and were derived from and relate directly to the underlying accounting

and other records used to prepare the basic financial statements. The information has been subjected

to the auditing procedures applied in the audit of the financial statements and certain additionalprocedures, inõluding comparing and reconciling such information directly to the underlying accounting

and other records uðed to prepãre 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. ln our opinion, the information is fairly stated in all material respects in relation to the

financial statements as a whole. The introductory and statistical sections have not been subjected to the

auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not

express an opinion or provide any assurance on them.

At^^,l^ !"yryZ,"L i $-?c ? s'

Hauppauge, New YorkNovember 28,2012

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REQUIRED SUPPLEMENTARY INFORMATIONManagement's Discussion and Analysis

- 13 -

INCORPORATED VILLAGE OF GARDEN CITYMANAGEMENT'S DISCUSS ION AND ANALYS IS

May 31 ,2012

As management of the lncorporated Village of Garden City, New York (the "Village"), we offerreaders of the financial statements this narrative overview and analysis of the financial activities forthe year ended May 31 ,2012. We encourage readers to consider the information presented here inconjunction with additional information that we have furnished in our letter of transmittal of thisreport.

FINANCIAL HIGHLIGHTS

The combined assets of the Village exceeded its liabilities by $27,808,688 (net assets) atMay 31 ,2012.

The Village's total combined net assets decreased by $9,287,616 of which $7,806,456 wasrelated to governmental activities and $1,481,160 was related to business-type activities.The most notable factor contributing to this decrease is the ongoing recognition of otherpostem ployment benefit costs,

As of May 31 , 2012, lhe Village's governmental funds reported combined ending fundbalances of $10,168,127. Of this amount, $806,595 is not in spendable form or is required toremain intact. The remaining $9,361 ,532 or approximately 92o/o of total fund balances is inspendable form with various levels of spending constraint: restricted, assigned, orunassigned making them available for spending at the Village's discretion (in compliance withGovernmental Accounting Standards Board (GASB) Statement No. 54, Fund BalanceReporting and Government Fund Type Definitions) see Note 2.8.

a

a

a

a

a

At year end, the Village's total fund balance for the General Fund was $9,075,878, a slightdecrease of $299,905 from the prior year. The assigned and unassigned (GASB StatementNo. 54) fund balance for the General Fund was $8,269,283.

The Village's total bonded debt (inclusive of general obligation bonds and a specialassessment bond) was $21,440,000, of which $10,690,000 relates to governmental activitiesand $10,750,000 relates to business-type activities. There was an increase in bonded debt inthe amount of $3,579,500, a result of a general obligation bond issued during the year in theamount of $6,010,000 for various road, lighting, pool improvements, and resurfacing ofparking fields, which was offset by principal payments in the amount of $2,430,500.

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INCORPORATED VILLAGE OF GARDEN CITYMANAGEMENT'S DISCUSSION AND ANALYSIS

May 31 ,2012

OVERVIEW OF THE FINANCIAL STATEMENTS

The discussion and analysis is intended to serve as an introduction to the Village's basic financialstatements. The Village's basic financial statements comprise of the following components: 1)

government-wide financial statements, 2) fund financial statements and 3) notes to basic financialstatements. This report also contains supplementary information in addition to the basic financialstatements themselves.

COMPONENTS OFTHE ANNUAL FINANICAL REPORT

RequiredSupplementary

lnformation

Summary Detail

Government-wide Fi nancial Statements

The government-wide financial statements are designed to provide readers with a broad overview ofthe Village's finances, in a manner similar to a private-sector business. The intent of thegovernment-wide financial statements is to give the reader a long-term view of the Village's financialcondition.

The Statement of Net Assets presents financial information on all of the Village's assets andliabilities, with the difference between the two reported as net assets. This combines andconsolidates the Village's current financial resources with capital assets and long-term obligations.The purpose of this statement is to give the reader an understanding of the Village's total net worth.Over time, increases or decreases in the Village's net assets are one indicator of whether itsfinancial health is improving or deteriorating. You will need to consider other nonfinancial factors,however, such as changes in the Village's property tax base and the condition of the Village'sbuildings, roads, drainage and other assets to assess the overall health of the Village.

The Statement of Activities presents information showing how the Village's net assets changedduring the most recent year. Revenues and expenses are reported by activity to give the reader an

understanding of how each of the Village's activities is being supported. All changes in net assetsare reported as soon as the underlying event giving rise to the change occurs, regardless of thetiming of related cash flows. Thus, revenues and expenses are reported in this statement for someitems that will only result in cash flows in future periods. This method is known as the accrual basisof accounting and is different from the modified accrual basis of accounting used in the Village'sfund financial statements.

Management'sDiscussion and

Analysis

BasicFinancial

Statements

Government-wideFinancial

StatementsFund

Financial StatementsNotes to the

Financial Statements

- 15 -


May 31 ,2012

OVERVIEW OF THE FINANCIAL STATEMENTS (continued)

Government-wide Fi nancial Statements (continued )

The Village's government-wide financial statements includes both the governmental and business-type activities of the Village itself (known as the primary government) and of its legally separatecomponent unit for which the Village is financially accountable. Financial information for thecomponent unit is reported separately (discretely presented) from the financial information presentedfor the primary government.

Both of the government-wide financial statements distinguish functions of the Village that areprincipally supported by taxes and intergovernmental revenues (governmental activities) from otherfunctions that are intended to recover all or a significant portion of their costs through user fees andcharges (business-type activities).

Governmental Activities - The Village's basic services are reported here, including: generalgovernment support; public safety; transportation; economic assistance and opportunity; culture andrecreation and home and community services. Property taxes, mortgage taxes, franchise fees,fines, and state and federal grants finance these activities. The Village also charges fees tocustomers to help it cover the cost of certain services it provides.

Busrness-Iype Activities - The Village charges a fee to customers to help it cover all or most of thecost of certain services it provides. The Village's water and recreation facilities are reported here.

Component Unit - Component units are legally separate organizations for which the Village is eitherfinancially accountable, or the nature and significance of their relationship with the Village is suchthat exclusion would cause the Village's financial statements to be misleading or incomplete. TheGarden City Public Library is reported in a separate column in the government-wide statements, asa discretely presented component unit. Although legally separate, this "component unit" is importantbecause the Village is financially accountable for this entity.

lnformation on the separately issued financial statement is shown in Note 1.4 to the financialstatements.

Fund Financial Statements

The fund financial statements focus on current available resources and are organized and operatedon the basis of funds, each of which is defined as an accounting entity with a self-balancing set ofaccounts established for the purpose of carrying on specific or attaining certain objectives in

accordance with special regulations, restriction or limitations. The Village, like other governments,uses fund accounting to ensure and demonstrate compliance with finance-related legalrequirements. All of the funds of the Village can be divided into three categories: governmentalfunds, proprietary funds and fiduciary funds.

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INCORPORATED VILLAGE OF GARDEN CITYMANAGEMENT'S DISCUSS ION AND ANALYSIS

MaY 31 ,2012

OVERV¡EW OF THE FINANCIAL STATEMENTS (continued)

Fund Financial Statements (continued)

Gove Funds

The Village's activities are reported in governmentalfunds. Governmentalfunds are used to account

for esseñtially the same functions reported as governmental activities in the government-wide

financial statements. However, unlike the government-wide financial statements, governmental fund

financial statements focus on near-term inflows and outflows of spendable resources, as well as on

balances of spendable resources available at the end of the year. Such information may be useful in

eval uating a government's near-term fi nancial requi rements.

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 similarinformation presented for governmental activities in the government-wide financial statements. By

doing so, readers may better understand the long{erm effect of the Village's near term financial

decisions. Both the governmental fund balance sheet and governmentalfund statement of revenues,

expenditures, and change in fund balances provide a reconciliation to facilitate this comparison

between govern mental fu nds and governmental activities'

The Village maintains two individual major governmental funds. lnformation is presented separately

in the governmental fund balance sheet and in the governmental fund statement of revenues,

expenditures, and changes in fund balances for the General and Capital Project Funds.

The Village adopts an annual appropriated budget for its General Fund. A budgetary comparison

schedule for the General Fund can be found in the section labeled "Required Supplementarylnformation Other Than Management's Discussion and Analysis."

The governmental fund financial statements can be found in the "Basic Financial Statements"

section of this report.

Proprietarv Fund

The Village maintains two types of proprietary funds. Enterprise funds are used to report the same

functions presented as business-type activities in the government-wide financial statements. The

Village uses enterprise funds to account for its water, pool and tennis funds. The lnternal Service

Fund is used to accumulate and allocate costs internally among the Village's various functions' The

Village uses its lnternal Service Fund to account for risk management activities. Because these

serv'lces predominantly benefit governmental rather than business-type activities, they have beenincluded within governmental activities in the government-wide financial statements, but are included

in a single column in the proprietary funds statements.

Proprietary funds provide the same type of information as the government-wide financial statements,

only in more detail. The proprietary fund financial statements provide separate information for the

waier, pool, tennis and internal service funds since all are considered to be major funds of the

Village. The proprietary fund financial statements can be found in the "Basic Financial Statements"

section of this report.

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May 31 ,2012

OVERVIEW OF THE FINANCIAL STATEMENTS (continued)


Fiduciarv Funds

All of the Village's fiduciary activities are reported in a separate Statement of Fiduciary Assets andLiabilities. We exclude these activities from the Village's other financial statements because theVillage cannot use these assets to finance its operations. The Village is responsible for ensuringthat the assets reported in these funds are used for their intended purposes. The fiduciary fundfinancial statement can be found in the "Basic Financial Statements" section of this repod.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data providedin the government-wide and fund financial statements. The notes to the financial statements can befound following the basic financial statements.

Other lnformation

ln addition to the basic financial statements this report contains supplementary informationimmediately following the notes to the financial statements.

GOVERNMENT.WIDE FINANCIAL ANALYSIS

As noted earlier, net assets may serve over time as a useful indicator of a government's financialposition. ln the case of the Village, assets exceeded liabilities by $27,808,688 at the close of themost recent year.

Our analysis below focuses on the net assets and changes in net assets of the Village as a whole.

Gondensed Statement of Net Assetsas of May 31, 2012 and 2011

Governmental Bus¡ness-type Total

Activities Activities Primary Government

2012 2011 2011 2012 20112

Assets

Current and other assets

Capital assets

$ 2,| ,638,08653,482,691

Total Assets 75,'120,777

s 20,477,048 $ 3,585,160 $ $ 25,223,246 $

73336,122

4,6't0,608

18.224,711

25,087,656

72,601,73054,377,019 19,853,431

74,854,067 23,438,591 319 98,559,368 97,689,386

Liabilities

Current and other liabilities

Long-term liabilities

Total Liabilities

9,1 82,605

47,347j009,545,722

38,910,8'17

2,411,595 1,995,257

10,141,286

11,594,200

59,156,480

l',1,540,979

49,052,1 0311 .380

56,529,705 48,456,539 14,220,975 12, 136.543 70,750,680 60,593,082

Net assetslnvested in capital assets,

net of debt

Unrestricted

41,851,325 45,259,008(18,861 ,480)

9,026,069't91,547

8,514,014

2,184,762

50,877,394(23,068,706)

53,773,022(16,676,718)

Total NetAssets $ 18,59 1.072 $ 26,397,528 $ 9,217,616 $ 10,698,776 $ 27,808,688 $ 37,096,304

Total assets of the Village's governmental activities, as of May 31 ,2012, were $75,120,777, anincrease of $266,710. Total liabilities as of May 31 , 2012 were $56,529,705, an increase of$8,073,166. This resulted in a net asset balance of $18,591 ,072for 2012, a decrease of $7,806,456.

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May 31 ,2012

GOVE RN M ENT-WI DE Fl NANCIAL AN ALYSI S (conti nued )

Of the Village's governmental activities net asset balance, $41,851,325 were invested in capitalassets, net of related debt; leaving $23,260,253 in the unrestricted deficit category.

The largest portion of the governmental activities net assets, $41 ,851,325, reflects its investment incapital assets (e.g., land, buildings, machinery, and equipment, and infrastructure); less any relateddebt used to acquire those assets that is still outstanding. The Village uses these capital assets toprovide services to citizens; consequently, these assets are not available for future spending.Although the Village's investment in its capital assets is reported net of related debt, it should be

noted that the resources needed to repay this debt must be provided from other sources, since thecapital assets themselves will not be used to liquidate these liabilities.

The deficit balance of unrestricted net assets does not necessarily indicate fiscal stress. The deficitbalance in unrestricted net assets arose primarily due to long-term liabilities which include otherpostemployment benefits, compensated absences, claims and judgments and tax certiorari coststhat will be funded through future budgetary appropriations when they become payable in futureperiods.

Total assets of the Village's business-type activities, as of May 31 , 2012, were $23,438,591, an

increase of $603,372. Total liabilities as of May 31 , 2012 were $14,220,975, an increase of$2,084,432. This resulted in a net asset balance of $9,21 7 ,616 for 2012, a decrease of $1 ,481 ,160.Of the Village's business-type activities net asset balance, $9,026,069 were invested in capitalassets, netof related debt; and leaving $191,547 in the unrestricted balance. The Pool and TennisFunds reported a negative investment in capital assets, net of related debt. This is a result of theVillage's assets depreciating at a faster rate than the corresponding debt is being amortized (i.e.paid down), which is a result of the Village's debt being issued at a later date compared to the datethe asset is placed into service.

The Village's combined net assets were again decreased in the current year and will continue todecrease in subsequent years due to the ongoing recognition of Governmental AccountingStandards Board (GASB) Statement No. 45, Accounting and Financial Reporting by Employers forPostemployment Benefits Other Than Pensions (OPEB). The unfunded liability for postemploymentbenefits healthcare costs related to the primary government increased by $6,140,493 in the currentyear, bringing the unfunded liability at year end to $24,453,102. Additional information on otherpostemployment benefits can be found in Note 3.F to the financial statements.

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May 31 ,2012

GOVERN M ENT-WI DE F¡ NANCIAL ANALYSI S (continued )

Our analysis below separately considers the operations of governmental and business-typeactivities.Changes in NetAssets

Fortheyears ended May 31,2012and 2011

Governmental Business-$pe Activities Ïotal

Activities Activities Primary Government

Program Revenues

Charges for services

Operating grants

and contributions

Capital grants

and contributions

Total Program Revenues

General Revenues

Real property taxes

Other real property tax items

Non-property tax items

Earnings on investments

Grants - unrestricted

Legal settlement

Other

Total General Revenues

Total Revenues

Program Expenses

General government support

Public safety

Transportation

Economic assistance

and opportunity

Culture and recreation

Home and

community services

lnterest on debt

Pool

Tennis

Water

419,625 440,161

2012 2011 2012 2011 2012 2011

$ 3,086,466 $ 3,093,593 $ 6,241,016 $ 6,764,732 $ 9,327,482 $ 9,858,325

424,011 244,761 424,011 2M,761

568,821 582,599 568,821 582,599

4,079,298 3,920,953 6,241,016 6,764,732 10,320,314 1

44,593,1 60

718,361

995,737

127,090

752,983

44,328,042

653,051

1,088,762

148,289

807,361

43,432

22,279

35,519

29,392

44,593,160

718,361

995,737

170,522

752,983

22,279

419.625

44,328,042

653,051

1,088,762

183,808

807,361

29,392

440 161

47,606,956 47,465,666 65 711 64,911 47,6 72.667 47,530,577

51,686,254 51 I 6,306,727 6,829,643 57,992,981 58,21 6.262

11,572,522

23,283,535

4,690,515

7,784

11,247 ,553

8,391,920

298,881

13,691 ,507

22,205,619

4,939,638

30,676

10,941,924

8,555,314

318,151

11,572,522

23,283,535

4,690,515

7,784

11,247 ,553

13,691 ,507

22,205,619

4,939,638

30,676

10,941,924

8,555,314

31 8,1 51

1,164,447

458,895

1 ,1 39,389

451,771

6j96/27

1,164,447

458,895

6,292,376

8,391,920

298,881

1 ,1 39,389

451,771

6,196,727

Total Program Expenses 59,492,710 60,682 .829 7,787,887 7,915,718 67,280,E92 68 7

Change in Net Assets

Net Assets at Beginning of Year

(7,806,456)

26397,528

(9,296,210)

35,693,738

(1,481,160)

1 776

(1,086,075)

11,784,851

(9,287,616)

37,096,304

(10,382,285)

47,478,589

NetAssetsatEndofYear $ 18,591,072 $ 26,397,528 $ 9,217,616 $ 10,698,776 $ 27,808,688 $ 37,096,304

Certain amounts in the 2011 schedule of changes in net assets have been reclassified to conform tothe current year presentation.

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May 31 ,2012

GOVERNMENT-WIDE FINANCIAL ANALYSIS (continued)

During the year ended May 31 , 2012, government-wide revenues decreased from the prior year by$223,281 while government-wide expenses decreased from the prior year by $1 ,317,950.

The key elements of the change in government-wide revenues are as follows

Decrease in the charges for services related to the business-type activities, primarily relatedto a decrease in water sales in the amount of approximately $583,000. This is mainly due tothe change in weather conditions. ln the current fiscal year, the temperatures were coolerand there were higher amounts of precipitation compared to the prior year, which resulted ina decrease in water consumption.

lncrease in operating grants and contributions of approximately $179,000 primarily due to thefederal and state aid received for costs associated with the cleanup from the effects ofHurricane lrene.

lncrease in real property taxes of approximately $265,000 due to a minimal increase in thetax rate of the General Fund.

Decrease in non-property taxes items of approximately $93,000 due to decreases in publicutility gross receipts taxes and franchise fees.

The key elements of the change in government-wide expenses are as follows

Decrease in general government support expenses of approximately $2,119,000 primarilydue to a significant decrease in tax certioraris settlements against the Village in the currentyear as compared to prior year.

lncrease in public safety expenses of $1,078,000 primarily due to an increase in policedepartment salaries, compensated absences payouts and employee benefits (i.e. NYSretirement system contributions).

Decrease in transportation expenses of approximately $249,000 primarily due to a decreasein salaries paid and materials and supplies needed for snow removal and street maintenanceas the current year's winter was milder with minimal snow and icy conditions compared toprior year.

lncrease in culture and recreation expenses of approximately $306,000 due to an increase inemployee benefit costs and an increase in the contribution to the Garden City Public Library(component unit).

Decrease in home and community expenses of approximately $163,000 primarily due to adecrease in salaries and compensated absences payouts in the current year.

Decrease in Water Fund expenses of approximately $96,000 primarily due to a significantdecrease in litigation costs as the Village's environmental cost recovery lawsuits are close tobeing resolved and therefore less costs were incurred in the current year and a decrease insalaries for water pumpage. This was offset by a reallocation of certain employees fromother funds to perform special projects required by Nassau County, which resulted in anincrease in salaries and employee benefits costs.

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GOVE RN M ENT-WI D E Fl NANCIAL ANALYSIS (conti n ued )

Net Gost of ServicesGovernmental Activit¡esFor Years Ended May 31,2012 and 201 I

Total Costs of Services


May 31 ,2012

Program Revenues Net Cost of Services

2012 2011 201226,140

1,862,348963,618

554,137673,055

2011s 24,710

1,831,2921,019,457

530,470515,024

21.421.1873,726,897

7,78410,693,4167,718,865

298,881

20,374,3273,920,181

30,67610,411,4548,040,290

31 8,151

_q___!9É190_

2012 2011$ '11 ,546,382 $ 13,666,797General government support

Public safetyTransportationEconom¡c assistance and opportunityCulture and recreationHome and commun¡ty serviceslnterest on debt

PoolTennisWater

$ 11.572,52223,283,535

4,690,5157,784

11.247.5538,391,920

298,881s 59,492,710

22,205,6194,939,638

30,67610,941,9248,555,314

318,151

_$______a9@,929_

$ 13,691 ,507 $

s taA s 3.920.953 $ 55.413.412

The cost of the governmental activities this year was $59,492,710. The net cost of these servicesafter being subsidized by program revenues of 94,079,298 was $55,413,412.

Net Cost of ServicesBus¡ness-Type Activit¡esFor Years Ended May 31, 2012 and 2O'11

Total Costs of Services Prooram Revenues Net Cost of Services

2012 2011 2012 2011 2012 2011

$ 1,139,389451,771

6j96,727$ 7,787.887

$ 1,164,447458,895

6,292,376$ 7,91s,71 8

g 1,111,211 $ 1,092,315392,371 352,000

72,132I 06,895971,959

$ 1,150.9865,320,417

g 6.764,732

28,178s9,400

1,459,293

$ $

4,737,434$ 6.241 .016 $ 1,546.871

The cost of the business-type activit¡es this year was ç7,787,887. The net cost of these servicesafter being subsidized by program revenues of $6,241 ,016 was $1 ,546,871 .

FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS

Governmental Funds

The focus of the Village's governmental funds is to provide information on near-term inflows,outflows, and balances of spendable resources. Such information is useful in assessing the Village'sfinancing requirements. ln particular, spendable fund balance may serve as a useful measure of agovernment's net resources available for spending at the end of the year.

The Village has implemented Governmental Accounting Standards Board (GASB) Statement No.

54, Fund Balance Reporting and Government Fund Type Definitions. As a result of thisimplementation, the fund balance section of the balance sheets of the governmental funds has beenmodified. The change has been made in order for the Village's new fund balance components tofocus on "the extent to which the government is bound to honor constraints on the specific purposesfor which amounts in the fund can be spent". Previously, the fund balance section focused on

whether these resources were available for appropriation. lt also distinguished the unreserved fundbalance from the. reserved fund balance. ln order to show compliance with GASB Statement No. 54,

however, the components of the new fund balance include the following line items:

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May 31 ,2012

FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS (continued)

Nonspendable fund balance - $806,595 (inherently non spendable) includes the portion ofnet resources that cannot be spent because they are not in spendable form, cannot be

converted to cash in the current period or are legally or contractually required to remainintact.

Restricted fund balance - $16,751 (externally enforceable limitations on use) includeamounts subject to limitations imposed by creditors, grantors, contributors, or laws andregulations of other governments.

Assigned fund balance - $7,733,797 (limitation resulting from intended use) consists ofamounts where the intended specific purpose is established by the Village Board ofTrustees, but do not meet the criteria to be classified as restricted or committed.

Unassigned fund balance - $1,610,984 (residual net resources) is the remaining fundbalance in the General Fund in excess of nonspendable, restricted and assigned fundbalance.

The implementation of these new components is intended to increase clarity and help service theneed of the financial statement users. See Note 2.8 for more information.

At May 31 , 2012 the Village's governmental funds reported total ending fund balances of

$10,1 68,127 an increase of $1 ,382,269 in comparison with the prior year.

General Fund

The General Fund is the chief operating fund of the Village. At the end of the current year, the totalfund balance of the General Fund was $9,075,878, decreasing by $299,905 from the prior year. Ofthis amount, $806,595 is not in spendable form (inventory of material and supplies) and theremaining $8,269,283 is in spendable form as follows: $2,964,244 has be assigned by the VillageBoard for the subsequent year's budget, $435,221 has be assigned for purchase orders by theVillage Auditor, $3,235,200 has been assigned by the Village Board for future employee benefitpayments, $23,634 has been assigned for miscellaneous designations, and the remaining

$1,61 0,984 represents spendable, unassigned fund balance.

The key elements of the fund balance decrease of $299,905 are as follows:

. There was a planned fund balance reduction of $1,913,685, a result of an appropriation in

the current year's original budget.

. Revenues were higher than the final budget primarily due to federal aid received forassistance with the cleanup costs of Hurricane lrene in the amount of $312,649. Overall,actual revenues increased from prior year by $303,304 due to a minimal increase in the realproperty taxes assessed and the increase in federal grants.

. General government support expenditures were under the Village's final budget by

$1,4Q1,707, as there were less tax certiorari cases settled against the Village thananticipated and an overall reduction of spending. The actual general government supportexpenditures decreased by $849,981 as compared to prior year, a result of a decrease in

premiums paid to the lnternal Service Fund for risk management and less refunds of realproperty taxes (tax certioraris).

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May 31 ,2012

FINANCIAL ANALYSIS OF THE VILLAGE'S FUNDS (continued)

General Fund (continued)

o Actual public safety expenditures increased by $884,143 compared to prior year, a result ofincreased salaries and compensated absences pay outs during the year. Public safetyexpenditures were under the final budget by $350,993 due to an overall reduction ofspending in the police and fire departments.

. Actual transportation expenditures decreased by $424,348 compared to prior year, a result ofless costs for snow removal. The transportation expenditures were under the final budget by

$123,175 as the Village did not need to purchase material and supplies or incur costs for themaintenance of snow removal equipment as anticipated.

. Expenditures related to employee benefits increased by $1,090,072 compared to prior year,a result higher contributions to the New York State and Local Employees' Retirement Systemand the New York State and Local Police and Fire Retirement System and an increasehealth insurance costs as compared to the prior year. These costs were under final budgetby $239,428.

o Overall debt service expenditures were higher than prior year by $175,826 due to thepayments made on bonds issued in the prior years. These debt service expendituresexceeded the final budget by $Zt 3,914.

Gapital Projects Fund

At the end of the current year, the Capital Projects Fund had a total fund balance of $1 ,092,249, anincrease of $1,682,174from the prior year. Of this amount $16,751 was restricted to specific capitalproject expenditures and $1,075,498 is assigned for capital project purposes.

The fund balance increase in the Capital Projects Fund by of $1,682,174from the prior year is aresult of timing differences between project expenditures and the recognition of correspondingpermanent financing. The Village received bond proceeds in the amount of $3,875,000 in thecurrent year which was used to finance prior year and current year capital projects.

Proprietary Funds

The Village's proprietary fund statements provide the same type of information found in thegovernment-wide financial statements but in more detail.

As of May 31 , 2012, the Pool Fund's net deficit was $446,712. This net deficit was greater than theprior year in the amount of $1,666. The Tennis Fund's net assets at year end were $92,111, a

decrease of $55,055 from the prior year. The overall deficit of the Pool Fund and the decrease in theTennis net assets is primarily a result of recognizing depreciation and other postemployment benefitcosts (OPEB).

The Water Fund's net assets were $9,678,853 a decrease of $1,321,135 from the prior year. Asdiscussed in the analysis of government-wide financial statements, this is a result of less sales in thecurrent year due to weather conditions and the reallocation of salaries for special projects and therelated employee benefits costs, including OPEB costs.

The lnternal Service Fund's net deficit at May 31,2012 was $1,504,866, This net deficit was greaterthan prior year in the amount of $1 ,217,034. This is mainly a result of an increase in costs in thecurrent year related to workers' compensation liability as the Village is fully insured as of August 1,

2011 and decrease premiums received from the participating funds.

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INGORPORATED VILLAGE OF GARDEN CITYMANAGEMENT'S DISCUSSION AND ANALYSIS

May 31 ,2012

GENERAL FUND BUDGETARY HIGHLIGHTS

The Village appropriated expenditures in the original General Fund budget in excess of estimatedrevenues in the amount of 92,427,008, by designating unreserved fund balance from the prior yearand reappropriating prior year encumbrances in the amount of $513,323, Over the course of theyear the Board of Trustees revises the budget as needed so that expenditures do not exceedappropriations. ln the General Fund, various transfers between appropriations were approved forthis purpose. The final expenditure budget was increased by $612,825 from the original expenditurebudget. The majority of this increase was for public safety related salaries and compensatedabsence payment to retirees.

Please see the "General Fund" section for more details on the comparison of final budgets to actualexpenditures.

CAPITAL ASSET AND DEBT ADMINISTRATION

Capital Assets

The Village's investment in capital assets, net of accumulated depreciation, for its governmental andbusiness-type activities as of May 31 , 2012, amounts to $53,482,691 and $19,853,431 , respectively.This investment in capital assets includes land, buildings, improvements, machinery and equipment,roads, curbs, sidewalks, drainage, sewer and water systems, and construction in progress.

During the fiscal year ended May 31 ,2012, the Village's major capital expenditures were as follows:

Pool improvementsParking areas- Central Business DistrictVillage Hall building extensionRoad repairsSidewalk repairs

Capital Assets at May 31,2012 and 2Q11(Net of Depreciation)

$ 2,089,5581,189,495

699,297336,000261,711

Governmental Activities2012 2011

Business-type Activities2012

LandConstruction in progressBuildingslmprovements other than buildingsMachinery and equipmentlnfrastructure:

Roads, curbs, and sidewalksDrainage and sewer systems

Total capital assetsLess: accum ulated depreciation

Total net capital assets

$ 16,603,615 $ 16,603,615 $

23,064,1566,848,542

18,072,889

37,582,55710,739,159

22,162,7497,018,109

17,809,214

35,370,98610,739,159

69,2122,25't,6708,246,138

15,163,09913,231,915

69,21257,670

8,246,13814,521,69913,045,332

$

112,910,91859,428.227

109,703,83255,326,813

38,962,03419 108 603

35,940,05117,715,340

$ 53,482,69'1 $ 54,377,019 $ 19,853,431 $ 18,224,711

The Village has five-year cap¡tal improvement plans for the General Fund. The five-year plans allowfor the continued improvements to infrastructure, buildings and equipment while remainingconsistent with the Village's debt service requirements. Annually, the Village Board of Trusteesreviews, updates, and amends the capital plan.

Additional information on the Village's capital assets can be found in Note 3.C to the financialstatements,

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May 31 ,2012

CAPITAL ASSET AND DEBT ADMINISTRATION (continued)

Debt Administration

At the end of the current year, the Village had total long-term bonded debt outstanding of$10,690,000 and $10,750,000 for its governmental and business-type activities, respectively. Theentire debt is backed by the full faith and credit of the Village. The Village also has $762,809outstanding in capital loans payable.

Outstanding Debt at May 31, 2012 and 20112012 2011

Governmental Activities:

Capital loans payableSpecial assessment bond payable

with governmental com mitmentGeneral obligation bonds payable, exclusive of premium

Total outstanding debt, governmental activities

$ 762,809 $ 938,011

1,370,000

11

1,130,0009,560,000

$ 11,452,80979 500

Busi ness-type Activities:

General obligation bonds payable, exclusive of premiumTotal outstanding debt, business-type activities

$ 10, 750.000$ 10,750,000

The above does not include premiums related to general obligation bonds in the amount of $72,569and $46,675 for the governmental activities and business-type activities, respectively, as of May 31,2012 and $14,500 and $15,697 respectively, as of May 31 , 2011 .

During the current fiscal year, the Village's debt, inclusive of bonded debt and capital loans,increased by $3,404,298 or 18.00%, which is a net change in the debt retired and new borrowings.

Moody's lnvestment Services maintained the Village's credit rating at "Aaa" during the year endedMay 31 ,2012.

Debt Limit

The Village has the power to contract indebtedness for any Village purpose so long as the principalamount thereof, subject to certain limited exceptions, shall not exceed 7.00o/o of the average fullvaluation of taxable real estate of the Village, and is subject to certain enumerated exclusions anddeductions such as water and certain sewer facilities and cash or appropriations for current debtservice.

The constitutional method for determining full valuation is calculated by taking the assessedvaluation of taxable real estate as shown upon the latest completed assessment roll and dividing thesame by the equalization rate as determined by the State Board of Equalization and Assessment.The State Legislature is required to prescribe the manner by which such ratio shall be determined.Average full valuation is determined by taking the sum of the full valuation of the last completedassessment roll and the four preceding assessment rolls and dividing such sum by five. Thepercentage of debt contracting power exhausted at May 31, 2012 was 2.72o/o.

Additional information on the Village's debt activity can be found in Note 3.D to the financialstatements.

$ 9,695,000$ 9,695,000

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May 31 ,2012

ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES

Propertv Tax

The Village has adopted a budget for the 2012-2013 fiscal year, which factors in inflation and otheradjustments to revenues and expenditures as well as prior year positive and negative fund balances.The 2012-2013 budget includes an overall increase in real property tax revenues of approximately

$478,443, which is the result of an increase in the tax rate of 1.71% from the prior year.

ln June 2011, New York State enacted Chapter 97, Laws of 2011 Real Property Tax Levy Cap andMandate Relief Provisions, which includes a 2.00o/o property tax cap for municipalities. For fiscalyears, beginning in 2012 and lasting through at least June 15, 2016, no local government isauthorized to increase its property tax levy by more than 2.00% or the rate of inflation (whichever isless). Local governments can exceed the tax levy limit by a 60.00% vote of the governing body and

annually adopting a local law. There are permitted exceptions and adjustments. The Village did not

exceed the 2o/o cap, inclusive of allowable exclusion in the 2012-2013 budget.

Tax Assessment Trends

Assessment reductions resulting from tax certiorari actions continue to erode the Village tax base.

This trend has shown signs of slowing and for the year ending May 31 ,2012, the Village anticipatesthat assessment refunds will not exceed the reduced budgeted allocation.

CONTACTING THE VILLAGE'S FINANCIAL MANAGEMENT

This financial report is designed to provide citizens, taxpayers, customers, investors, and creditorswith a general overview of the finances of the Village, and to demonstrate our accountability with themoney we receive. lf you have any questions about this report or need additional financialinformation, contact the lncorporated Village of Garden City, Business Office, Garden City, NewYork.

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BASIC FINANCIAL STATEMENTS

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INCORPORATED VILLAGE OF GARDEN CITY

GOVERNMENT-WI DE FINANCIAL STATEMENTSTATEMENT OF NET ASSETS

May 31,2012

Primary GovernmentGovernmental

ActivitiesBusiness-type

Activities TotalComponent

Unit

ASSETSCurrent Assets:

CashAccounts receivableDue from other governmentslnternal balancesTax sale certificateslnventory of material and supplies

Total Current AssetsNoncurrent Assets:

Non-depreciable capital assetsDepreciable capital assets,

net of depreciationTotal Noncurrent Assets

LIABILITIESGurrent Liabilities:

Accounts payable and

accrued liabilitiesDue to New York State retirement systemsUnearned revenuesNoncurrent liabilities due within one year:

Compensated absencesClaims and judgments payableTax certioraris payableCapital loans payable

Special assessment bond payablewith governmental commitment

General obligation bonds payableTotal Current Liabilities

Noncurrent Liabilities:Compensated absencesClaims and judgments payableOther postemployment benefits payableCapital loans payable

Special assessment bond payablewith governmental commitment

General obligation bonds payableTotal Noncurrent Liabilities

Total Liabilities

NET ASSETSlnvested in capital assets,

net of related debtUnrestricted

Total Net Assets

21,638,086 3,585,160 25,223,246

16,603,6'15

$ 19,407,244317,587642,978106,636357,046806,595

$ 2,792,663723,539

(106,636)

175,594

$ 22,199,9071,041J26

642,978-0-

357,046

301,123186386

$

982 189

301 695

2,320,882

17,532,549

18,924,497

54,411,62536,879,07653,482,691 19,853,431 73,336,122

TotalAssets 75,120,777 23,438,591 98,559,368

0

301,695

1,999,700741,068'150,558

385,3921,570,4522,903,000

175,771

240,0001 ,016,664

745,62055,1 89

595,657

16,088

995,041

2,749,320796,257746,215

401,4801,570,4522,903,000

175,771

240,0002,011,705

992953

7846

9,182,60s 2,411,595 11,594,200 125,945

7,322,4417,180,695

22,751,021587,038

890,0008,615,905

305,665

1,702,081

7,628,1067,180,695

24,453,102587,038

890,000

18,417,5399,801,63447 347 100 11,809,380 59,156,480 -0-

56 529,705 14,220,975 70,750,680 125,945

9,026,069191,547 175,750

$ 18,591,072 $ 9,217,616 $ 27,808,688 $ 175,750

41,851,325(23,260,253)

50,877,394(23,068,706)

See notes to the financial statements.

-31 -


GOVERNMENT-WI DE FINANCIAL STATEMENTSTATEMENT OF ACTIVITIES

YearEnded May31,2012

Program Revenues

Function/Program ExpensesCharges for

Services

OperatingGrants and

Contributions

CapitalGrants and

Contributions

PRIMARY GOVERNMENTGovernment Activities :

General government supportPublic safetyTransportationEconomic assistance and opportunityCulture and recreationHome and community serviceslnterest on debt

Total Governmental Activities

Business-type Activities :

PoolTennisWater

Total Business-type Activities

Total Primary Government

COMPONENT UNITGarden City Public Library

Total Component Unit

'10,000

3,086,466 424,011 568 821

1 ,1 39,389451,771

6,196,7277,787,887 0 0

$ 67,280,597 $ 9,327,482 $ 424,011 $ 568,821

$ 3,282,082 ç 74,864 $ 5,258

$ 3,282,082 $ 74,864 $ 5,258 $ 0

GENERAL REVENUES:

Real property taxesOther real property tax itemsNon-property tax items

Earnings on investmentsGrants and contributions not

restricted to specific programs

Legal settlementOther

Total General Revenues

Change in Net Assets

Net Assets at Beginning of Year

Net Assets at End of Year

See notes to the financial statements

$ t I ,572,52223,283,535

4,690,5'157,784

11,247,5538,391,920

298,881

59,492,710

26,140'1,858,976

404,797

550,364246,189

$ 3,372

3,773416,866

$ 558,821

$

1,111,211

392,3714,737,4346,241,016

32-

Net lExoenses) Revenues and Chanoe tn Net Assets

Primary GovernmentGovernmental

ActivitiesBusiness-type

Activities TotalComponent

Unit

$ (11,546,382)(21,421,187)

(3,726,897)(7,784)

(10,6e3,416)(7,718,865)

(2e8,881)

$ (11,546,382)(21,421,187)

(3,726,897\(7,784)

(10,6e3,416)(7,718,865)

(298,881)

(55,413,412) $ -0- (55,413,412)

(28,178)(5e,400)

(1,459,293)

-0- (1,546,871)(55,413,412) (1,546,871) (56,960,283)

44,593,160718,361995,737127,090

752,983

43,432

22,279

44,593,160718,361

995,737170,522

752,98322,279

419,625

$ (3,201 ,960)(3,201 ,960)

3,617

3,050,000

24,665419,625

47,606,956 65,711 47,672,667 3,078,282

(7,806,456)

26,397,528

(1 ,481 ,160)

10 698 776

(e,287,616)

37,096,304

(123,678)

$ 18,59'r ,072 $ S,Z

299 428

17,616 $ 27,808,688 $ 175,750


-33-


BALANCE SHEETGOVERNMENTAL FUNDS

May 31 ,2012

Maior Funds

ASSETSCashAccounts receivableDue from other governmentsTax sale certificateslnventory of materials and supplies

LIABILITIES AND FUND BALANCESLiabilities

Accounts payable and accrued liabilitiesTax certioraris payableDue to New York State retirement systemsDue to other fundsDeferred revenuesAdvances from other funds

Fund Balances

Nonspendable

Restricted

Assigned

Unassigned

Total Fund Balances

Total Liabilities and Fund Balances

TotalAssets $ 13,175,800 $ t,214,988 $ 14,390,788

$ 1,842,631903,000741,068

34,511507,604

$ 122,739 $ 1,965,370903,000741,068

34,511507,604

71 108 71 108

Total Liabilities 4,099,922 122 739 4.222,661

General CapitalProjects Totals

$ 1 1,051,594317,587642,978357,046806,595

$ 1 ,214,988 $ 12,266,582317,587642,978357,046806,595

806,s95

6,658,299

1,610,984

16,751

1,O75,498

806,595

16,751

7,733,797

1 ,610,984

9,075,878

$ 13,175,800

1,092,249 10,168,127

$ r,214,988 $ 14,390,788


-34 -


' RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET ASSETS

May 31 ,2012

TOTAL FUND BALANCES. GOVERNMENTAL FUNDS $ 10,168,127

Amounts reported for governmental activities in the Statement of Net Assets

are different because:

Capital assets less accumulated depreciation are included in the

Statement of Net Assets:

Capital assets - non-depreciableCapital assets - depreciable

Accumulated depreciation

Compensated absencesClaims and judgments payable

Tax certioraris payable

Other postemployment benefits payable

Capital loans payable

Special assessment bond payable with governmental commitment

General obligation bonds payable, inclusive of premium

lnterest payable applicable to the Village's governmental activities is not

due and payable in the current period and accordingly is not reported in the

funds. However, these liabilities are included in the Statement of Net

Assets

Other assets and liabilities not reported in the governmental funds

NET ASSETS OF GOVERNMENTAL ACTIVITIES


lnternal Service Fund is used to account for the Village's risk retention and the

charges to individual funds. Total assets of the lnternal Service Fund inclusive of an internal

receivable (a result of the net deficit), due from the business-type activities, reported on

the Statement of Net Assets:

Long-term liabilities applicable to the Village's governmental activities

are not due and payable in the current period and accordingly are

not reported in the funds. However, these liabilities are included in the

Statement of Net Assets:

$ 16,603,61596,307,303

(59,428,227)

(7,707,833)(8,751,147)(2,000,000)

(22,751,021)(762,809)

(1,130,000)(9,632,569)

53,482,691

7,352,917

(52,735,379)

(34,32e)

357 045

$ 18,591 ,o72

-35-

INCORPORATED VILLAGE OF GARDEN CITYSTATEMENT OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDSYear Ended May 31,2012

General Capital Projects

Total

GovernmentalFunds

REVENUESReal property taxes and tax itemsOther real property tax itemsNon-property tax itemsDepartmental incomeI ntergovernmental chargesUse of money and propertyLicenses and permitsFines and forfeituresSpecial assessmentsSale of property and compensation for lossMiscellaneous local sourcesState and local aidFederalaid

Total Revenues

EXPENDITURESCurrent:

General government supportPublic safetyTransportationEconomic assistance and opportunityCulture and recreationHome and community servicesEmployee benefits

CapitaloutlayDebt service:

Principallnterest

Total Expenditures

Excess (Deficiency) of RevenuesOver (Under) Expenditures

oTHER FTNANCTNG SOURCES (USES)

Principal amount of bond issuancePremium on bondsTransfers in

Transfers out

Total Other Financing Sources (Uses)

Net Change in Fund Balances

Fund Balances (Deficit)

at Beginning of Year

$ 44,566,731718,361995,736

1,640,42117,685

219,986127,083

1,131,920239,733337,639

90,3291,229,134

312,649

44,566,731718,361995,736

1,640,42117,685

219,986127,083

1,131,920239,733337,639

90,3291,229,134

312,649

$

51,627,407 51,627,407

8,703,94914,263,5612,369,624

7,7847,385,3715,525,517

10,775,501

1,525,702283,018

$ 3,340,798

8,703,94914,263,5612,369.624

7,7847,385,371

5,525,51710,775,501

3,340,798

1,525,702283,018

50,840,027 3,340,798 54¡80,825

787,380 (3,340,798) (2,553,418)

60,6871,271

(1,149,243)

3,875,000

1,149,243(1,271)

3,875,00060,687

1,150,514(1,150,514)

(1,087,285) 5,022,972

1,682,174

3,935,687

(299,905) 1,382,269

9,375,783 (589,925) 8,785,858

Fund Balances at End ofYear $ 9,075,878 $ t,092,249 $ 10,168,127


-36-


RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,

EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIESYear Ended May 31,2012

NET CHANGE IN FUND BALANCES

Governmental funds report capital outlays as expenditures. However, in

the Statement of Activities the cost of those assets is allocated over theirestimated useful lives and reported as depreciation expense. The amount

by which depreciation exceeds capital outlay in the current period is:

CapitaloutlayDepreciation expenseLoss on dispositions

Revenues in the Statement of Activities that do not provide current financial

resources are not reported as revenues in the funds.

The issuance of long-term debt provides current flnancial

resources to governmental funds, while the repayment ofthe principal of long-term debt consumes the current financial

resources of governmental funds. Neither transaction has any

effect on net assets.

Compensated absencesTax certioraris payable

Other postemployment benefìts payable

Repayment of capital loansBonds issuedPremium on bonds issuedRepayment of special assessment bond with governmental commitment

Repayment of bond principal

Amortization of bond premiums

Accrued interest costs

The lnternal Service Fund is used by management to charge the costs

of insurance activities to the individual funds. The net loss of the lnternal

Service Fund is reported with governmental activities.

Claims and judgments payable

Workers' compensation premium and other lnternal

Service Fund changes in activity

CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES


-37 -

$ 3,431,320(4,312,O14)

(13,634)

$ 1,382,269

(8e4,328)

26,429

(7,210,427)

(1 ,1 10,3ee)

78,011

800,000(5,665,208)

175,202

(3,875,000)(60,687)

240,000'1,110,500

2,618(15,863)

(341,713)

(768,686)

$ (7,806,4s6)

INCORPORATED VILLAGE OF GARDEN CITYSTATEMENT OF NET ASSETS

PROPRIETARY FUNDSMay 31,2O12

BUSINESS-TYPE ACTIVITIES - ENTERPRISE FUNDS

Pool Tennis WaterTotal

Enterprise Fundslnternal

Service Fund

ASSETSCurrent Assets:

CashAccounts receivableDue from other fundslnventory of materials

and supplies

Total Current Assets

Noncurrent Assets:Advances to other fundsNon-depreciable

capital assetsDepreciable capital assets,

net of depreciation

Total Noncurrent AssetsTotal Assets

LIABILITIESCurrent Liabilities:

Accounts payableand accrued liabilities

Collections in advance-membership fees

Due to New York Stateretirement systems

Compensated absencesGeneral obligation

bonds payableClaims and

judgments payable

Total Current Liabilities

Noncurrent Liabilities:Compensated absencesOther postemployment

benefits payableGeneral obligation

bonds payableClaims and

judgments payable

Total Noncurrent Liabilities

Total Liabilities

NET ASSETS (DEFTCTT)

lnvestment in capitalassets, net of related debt

UnrestrictedTotal Net Assets (Deficit)

$ 786,049 $

2,155301,374 $

2201,705,24Q $

721J642,792,663 $

723,5397140,662

34,511

175,594 175,594

788,204 301,594 2,601,998 3,691,796 7,175,173

71,108

2,089,558

357,453 216 055

231,324

16,959,04'1

2,320,882

17,532,549

2,447,0113,235,215

216,055 17,190,365 19,853,431 71 108

517 649 19,792,363 23,545,227 7,246,281

466,376

512,183

3,693980

79,251

15,072

83,474

3,154600

48,000

268,172

48,34214,508

867,790

749,620

595,657

55,18916,088

995,041

1.487,127

1,062,483 150 300 1198,812 2,411,595 1,487,127

18,616

117,311

2,483,517

11,391

65,847

198,000

275,658

1,518,923

7,120,117

305,665

1,702,081

9,801,634

7,264,020

2,619,4443,681,927

275.238 I,914,698 11,809,380 7,264,020

425,538 '10,113,510 14,220,975 8 751 147

(70,315)(376,397)

(2e,e45)

122.056

9,126,329552,524

9,026,069

298,183 (1,504,866)

s ø46,712\ g 92.111 $ 9,678,853 $ 9,324,252 $ (1,504,866)

Adjustment to report the internal balance for the net effect of the activity

between the internal service fund and the enterprise funds

Net Assets of business-type activities


-38-

$ (106,636)

$ 9,217,616


STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS

PROPRIETARY FUNDSYear Ended May 31,2012


Pool Tennis WaterTotal

Enterprise Fundslnternal

Service Fund

OPERATING REVENUESGharges for services:Water salesPublic fire protectionWater services for other

governmentslntergovernmental salesMembership and guest feesOther operating revenuesPremiums Charged for

Risk Retention:General fundEnterprise fundsComponent unit- Garden City

Public Library

Total Operating Revenues

OPERATING EXPENSES

PumpingTransmission and distributionPurificationOther operating expensesAdministrative and generalDepreciationExcess insuranceClaims and judgmentsWorkers' compensation

Total Operating Expenses

lncome (Loss) from Operations

1,111,211 392.371 4,737,434 6,241,016 3,351 ,145

$ 1 ,012,097 $99,114

$ 3,933,145 $545,1 99

152,48284,627

21,981

3,933,145545,199

152,48284,627

1,403,701121,862 $

391,604767 21,293

2,557,096235,956

136,800

784,155177,854117,383

293,45870,39570,954

1,114,607954,820279,533964,679

1,332,0891,204,926

1,114,607954,820279,533

2,042,2921,580,3381,393,263

16,800

1,257,254732,680

2

1,079,392 434.807 5,850,654 7,364,853 4,590,318

31 ,819 (42,436 (1,113,220) (1,123,837) (1,239,173)

NON-OPERATING REVENUES (EXPENSES)lnterest on investmentsLegal settlementlnterest on debt

2,876

(33,029)

776 39,78022,279

43,432

22,279

(106,636)

$ (1,481,160)

22,139

Total Non-OperatingRevenues (Expenses)

Changes in Net Assets

Total Net Assets (Deficit)at Beginning of Year

Total Net Assets (Deficit)

Adjustment for the net effect of the current year activitybetween the internal service fund and enterprise funds

Changes in Net Assets of business-type activities


(13,395) (269,974) (316,398)

(30,1 53) (12,619) (207,915) (250,687) 22,139

1,666 (55,055) (1,321,135) (1,374,524) (1,217,034)

(448,378) 147j66 10,999,988 (287,832)

at End of Year g (446,712\ $ 92,111 $ 9,678,853

-39-

$ (1,504,866)


STATEMENT OF CASH FLOWSPROPRIETARY FUNDS

Year Ended May 31,2012

BUSINESS.TYPE ACTIVITIES - ENTERPRISE FUNDSTotal Enterprise

Fundslnternal

Pool

CASH FLOWS FROM OPERATING ACTIV¡TIESRevenue Collected:

Water salesPublic fire protectionWater services for other governmentsI ntergovernmental salesMembership and guest fees $ 1,075,287Other receipts 99,1 14

Cash for interfund services providedPayments for Expenses:

Payments to suppliers (241,413)Compensation and related expenses (599,727)Cash paid for internal services provided (59,672\

T Water Fund

$

$ 3,981,s5754s,199152,482

84,627

$ 3,e81,557545,199152,48284,627

1,478,247121,862 $

402,960767

(104,847)(221,70e)

(7,898)

21,981

(1,728,093) (2,074,353)(2,441,439) (3,262,875)

(168,386) (235,956)

21,2933,329,852

(4,248,605)

Net Cash Provided (Used)by Operating Activities 273 589 69,273 447.928 790,790 (897,460)

CASH FLOWS FROM NONCAPITAL AND RELATED FINANCING ACTIVITIES

Proceeds from legal settlementDue to other funds (1 ,719) (2,500)

Advances to other funds

Net Cash Provided (Used) by Noncapitaland Related Financing Activities (1,719) (2,500) 3,999

22,279(18,280)

22,279(22,499) (16,500)

33,835

(220\ 17,335

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Purchases of capital assets (1 ,680,916)Proceeds from capital debt 2,135,000Premium from capital debt 33,768Principal paid on capital debt (77,000) (48,000)

lnterest paid on capital debt (33,02e) (13,395) (269,974) (316,398)

(61,3e5) (2,081,270\ (1,764,842\

(856,296)

(955,000)

(2,537,212)2,135,000

33,768(1,080,000)

Net Cash Provided (Used) by Capitaland Related Financing Activities

CASH FLOWS FROM INVESTING ACTIV¡TIES

lnterest and earnings received

Net Cash Providedby lnvesting Activities

Net Change in Cash

Cash at Beginning of Year

377 823 0

2,876 776 36_990 40,642 22 139

2,876 776

6,154

295,220

990 40,64236 22.139

652,s69 ('t,592,353) (933,630) (8s7,986)

7,998,6481 33.480 3,297,593 3,726,293

$ 786,049 $ 301.374 $2, 140.662


Cash at End of Year

-40-

$ 1,705,240 g 2,792ß63

(continued)

INCORPORATED V¡LLAGE OF GARDEN CITYSTATEMENT OF CASH FLOWS

PROPRIETARY FUNDSYear Ended May 31,20'12


Pool Tennis

(continued)

RECONC|LIATTON OF THE TNCOME (LOSS) FROM OPERATTONS TO NET CASHPROVIDED BY OPERATING ACTIVITIES:

WaterTotal Enterprise

Funds

$ 31,81e $ (42,436) $ (1,113,220) $ (1,123,837) $ (1,23e,173)

lnternalSeruice Fund

lncome (Loss) from OperationsAdjustments to reconcile operating

income to net cash providedby operating activities:

Accounts receivablelnventoryDepreciation expenseAccounts payable

and accrued liabilitiesDue to New York State

retirement systemDue to other fundsCompensated absencesOther postemployment

benefits payableCollections in advanceClaims and judgments payable

(1 50)

117,383

29,942

1,063

1,066

29,12663,340

177

70,954

7,885

342

717

20,45511,179

48,412(40,758)

1,204,926

(10e,884)

14,445

18,303

425,704

48,439(40,7s8)

1,393,263

(72,057)

15,850

20,086

475,28574,519

341 713

$ 273,589 $ 69,273 $ qqt,gZe $ 790,790 $ (897,460)

NON GASH INVESTING, CAPITAL AND FINANCING AGTIVITIES:

Amortization of bond premiumsAccounts payable and accrued

liabilities related to capital assets $ 315,213

Net Cash Provided (Used)by Operating Activities

Total Non Cash lnvesting,Capital and Financing Activities: $ 315,213 $ -0- $ 78,919 $

$ 2,790 $

76,129

2,790

391,342

394,132 $ 0


-41 -


STATEMENT OF ASSETS AND LIABILITIESFIDUCIARY FUND

May 31,2012

ASSETSCashDue from others

LIABILITIESBuilding fees and other dePositsJustice court fundOther agency liabilities

AgencyFund

$ 2,792,673102,885

TotalAssets $ 2,895.558

$ 2,202,955141,140551.463

Total Liabilities $ Z


-42-

INCORPORATED VILLAGE OF GARDEN CITYNOTES TO FINANCIAL STATEMENTS

May 31 ,2012

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The lncorporated Village of Garden City (the "Village") was established in 1919 and is governed byVillage Law and other general laws of the State of New York and various local laws. The Board ofTrustees, which is the legislative body responsible for the overall operation of the Village, consistsof the Mayor and seven trustees elected for two-year terms. The Mayor serves as the ChiefExecutive Officer. The Mayor and the Board of Trustees appoint the Village Administrator whoserves as the Chief Fiscal Officer of the Village. The Mayor, with ratification by the Board ofTrustees, annually appoints the principal department heads.

The Village provides a full range of municipal services including police, fire, sewer, water,sanitation, street maintenance, building, zoning, parks, recreation, library and general andadministrative services.

The financial statements of the Village have been prepared in conformity with accounting principlesgenerally accepted in the United States of America (GAAP) as applied to governmental units. TheGovernmental Accounting Standards Board (GASB) is the accepted standard setting body forestabl ishing governmental accounting and financial reporti ng pri nciples.

The more significant of the government's accounting policies are described below.

A. REPORTING ENTITY

The financial repofting entity consists of: (a) the primary government, which is the Village; and(b) organizations for which the primary government is financially accountable. The decision toinclude a potential component unit in the Village's reporting entity is based on several criteriasetforth in GASB Statement No. 14, "The Financial Repoñing Entity", as amended by GASBStatement No. 39, including legal standing, dependency and financial accountability.

Based on the application of these criteria, the following is a summary of the entity that isaccounted for as a discretely presented component unit in the Village's basic financialstatements:

The Garden City Public Library (the "Library") was established by the Village for the benefit ofits residents and granted a charter by the State Board of Regents as provided in Article 5 of theEducation Law. The Village appoints Library trustees; raises taxes and finances the Library'soperations through the transfer of funds to the Library; has title to real property used by theLibrary; and issues all Library indebtedness which is supported by the full faith and credit of theVillage.

Complete financial statements of the Garden City Public Library can be obtained by contacting

Garden City Public Library60 7th Street,

Garden City, NY 11530

B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS

The Village's basic financial statements include both government-wide (reporting the Villageas a whole) and fund financial statements (reporting the Village's major funds).

-43-

¡NCORPORATED VILLAGE OF GARDEN CITYNOTES TO FINANCIAL STATEMENTS

May 31 ,2012

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (continued)

Government-wide Financial Statements

The government-wide financial statements (i.e., the Statement of Net Assets and theStatement of Activities) report information on all of the non-fiduciary activities of the Village as awhole with separate columns for the primary governmental activities and business-typeactivities as well as the discretely presented component unit. For the most part, the effect ofinterfund activity has been eliminated from the government-wide financial statements, exceptfor interfund services provided and used. Governmental activities, which normally aresupported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely, to a significant extent, on fees and charges for support.

The government-wide Statement of Activities demonstrates the degree to which the directexpenses of a given function are offset by program revenue. Direct expenses are those thatare clearly identifiable with a specific function. Program revenues include: 1) charges tocustomers or applicants who purchase, use, or directly benefit from goods, services, orprivileges provided by a given function, 2) grants and contributions that are restricted tomeeting the operation or capital requirements of a particular function, and 3) interest earned ongrants or capital projects that is required to be used to support a particular program or project.

Taxes and other items not properly included among program revenues are reported as generalrevenues. The Village does not allocate indirect expenses to specific functions in theStatement of Activities.

Separate financial statements are provided for governmental funds, proprietary funds andfiduciary funds, even though the fiduciary funds are excluded from the government-widefinancial statements. Major individual governmental funds are reported as separate columns in

the fund financial statements.

Fund Financial Statements

The accounts of the Village are organized on the basis of funds, each of which is considered a

separate accounting entity. The operations of each fund are accounted for with a separate setof self-balancing accounts that comprise its assets, liabilities, fund balances, revenues, andexpenditures, which are segregated for the purpose of carrying on specific activities orattaining certain objectives in accordance with special regulations, restrictions or limitations.The various funds are presented by type in the fund financial statements. The focus of thegovernmental funds financial statements is on the major funds. Accordingly, the Villagemaintains the following fund types:

Governmental Funds - Governmental funds are those through which most governmentalfunctions are financed. The acquisition, use and balances of expendable financial resourcesand the related liabilities are accounted for through governmental funds. The measurementfocus of the governmental funds is upon determination of financial position and changes infinancial position. The Village reports the following major governmental funds:

General Fund - is the principal operating fund of the Village. This fund is used to accountfor all financial resources except those required to be accounted for in other funds.

Caoital Proiects Fund - is used to account for and report financial resources that arerestricted, committed, or assigned to expenditure for capital outlays, including theacquisition or construction of capital facilities and other capital assets other than thosefinanced by proprietary funds.

+4-


May 31 ,2012




Proprietary Funds - Proprietary funds are used to account for ongoing activities which aresimilar to those often found in the private sector. Proprietary fund financial statementsinclude a Statement of Net Assets, a Statement of Revenues, Expenses, and Changes inFund Net Assets, and a Statement of Cash Flows for each major proprietary fund. TheVillage presents all proprietary funds as major funds because the Village believes thefinancial position and activities of these funds are significant to the Village as a whole.

Proprietary funds are accounted for using the "economic resources" measurement focus andthe accrual basis of accounting. Accordingly, all assets and liabilities (whether current ornoncurrent) are included on the Statement of Net Assets. The Statement of Revenues,Expenses, and Changes in Fund Net Assets presents increases (revenues) and decreases(expenses) in total net assets.

The Village reports the following major proprietary funds

Enterprise Funds - used to account for the following operations

Water Fund - used to account for operations related to water billings.

Pool Fund - used to account for operations at the Village's swimming pool

Tennis Fund - used to account for operations at the Village's tennis bubble.

The Village applies to its enterprise funds all applicable GASB pronouncements and onlyFinancial Accounting Standards Board (FASB) Statements and lnterpretations, issued on orbefore November 30, 1989, that do not conflict with GASB pronouncements.

lnternal Service Fund - used to account for special activities or services provided by onedepartment to the other departments or to other governments on a cost-reimbursement basis.

lnternal service funds of a government (which traditionally provide services primarily to otherfunds of the government) are presented, in summary form, as part of the proprietary fundfinancial statements. Since the principal users of the internal services are the Village'sgovernmental activities, financial statements of internal service funds are consolidated intothe governmental column when presented at the government-wide level. The costs of theseservices are allocated to the appropriate functional activity (general government support,public safety, health, transportation, economic assistance and opportunity, culture andrecreation, home and community services, etc.). When significant, surplus or deficits in thelnternal Service Fund may be allocated back to customers at the government-wide levelStatement of Activities. This creates a reconciling item between the business-type activitiescolumn and the proprietary fund statements.

The lnternal Service Fund includes the following fund:

Risk Retention Fund - used to account for transactions and reserves set aside by theVillage to provide for risk management programs.

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May 31 ,2012




Fiduciary Funds - Fiduciary funds are used to account for assets held by the Village in atrustee or custodial capacity.

The Village has reported the following fiduciary fund:

Aqencv Fund - used to account for money received and held in the capacity of trustee,custodian or agent. The Village uses this fund to account for Justice Court monies held andvarious deposits such as building fees and tax redemptions.

The Village's Agency fund is presented in the fund financial statements. Since, by definition,these assets are being held for the benefit of a third party and cannot be used to addressactivities or obligations of the government, these funds are not incorporated into thegovern ment-wide statements.

C. MEASUREMENT FOGUS, BASIS OF AGCOUNTING, AND FINANCIAL STATEMENTPRESENTATION

The accounting and financial reporting treatment is determined by the applicable measurementfocus and basis of accounting. Measurement focus refers to what is being measured whereasthe basis of accounting refers to when revenues and expenditures are recognized in theaccounts and reported in the financial statements. Basis of accounting relates to the timing ofthe measurement made, regardless of the measurement focus applied.

The government-wide financial statements are reported using the economic resourcesmeasurement focus and the accrual basis of accounting, as are the proprietary fund financialstatements. Revenues are recognized when earned and expenses are recognized when aliability is incurred, regardless of the timing of related cash flows. Property taxes are recognizedas revenues in the year for which they are levied. Grants and similar items are recognized asrevenue as soon as all eligibility requirements imposed by the provider have been met.

Private-sector standards of accounting and financial reporting issued prior to December 1,

1989, are followed in both the government-wide and proprietary fund financial statements tothe extent that those standards do not conflict with or contradict guidance of the GovernmentalAccounting Standards Board. Governments also have the option of following subsequentprivate-sector guidance for their business-type activities and enterprise funds, subject to thissame limitation. The Village has elected not to follow subsequent private-sector guidance.

Governmental fund financial statements are reported using the current financial resourcesmeasurement focus and the modified accrual basis of accounting. Revenues are recognizedas soon as they are both measurable and available. Revenues are considered available whenthey are collectible within the current period or soon enough thereafter to pay liabilities of thecurrent period. For this purpose, the Village generally considers revenues to be available ifthey are collected within sixty (60) days of the end of the current period. Expendituresgenerally are recorded when a liability is incurred, as under accrual accounting. However, debtservice expenditures, as well as expenditures related to compensated absences, taxcertioraris, pollution remediation obligations, capital loans, and other postemployment benefitsare recorded when payment is due.

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May 31 ,2012


C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING, AND FINANCIAL STATEMENTPRESENTATION (continued)

Revenues susceptible to accrual are mortgage tax, franchise fees, charges for services, stateand federal aid, intergovernmental revenue and operating transfers. Permit fees and othersimilar revenues are not susceptible to accrual because they are not measurable until receivedin cash. ln those instances where expenditures are the prime factor in determining eligibility forstate and federal grants, revenues are recognized when the expenditure is incurred,

Proprietary funds distinguish between operating revenues and expenses from non-operatingitems. Operating revenues and expenses generally result from providing goods and services inconnection with the fund's ongoing operations. The principal operating revenues of theVillage's propriety funds are charges to customers for water sales, membership and guest feesto the pool and tennis facilities, and premiums for the risk management program. Operatingexpenses include costs of sales and services, administrative expenses and depreciation oncapital assets. All revenue and expenses not meeting this definition are reported as non-operating revenues and expenses.

Because governmental fund statements are presented using a measurement focus and basisof accounting different from that used in the government-wide statements' governmentalcolumn, a reconciliation is presented that briefly explains the adjustments necessary toreconcile ending net assets and the change in net assets.

Transactions between the primary government and its discretely presented component unit arereported as external transactions and therefore are reported as revenues and expenditures onthe Statement of Revenues, Expenditures, and Changes in Fund Balances for governmentalfunds.

When both restricted and unrestricted resources are available for use, it is the government'spolicy to use restricted resources first, then unrestricted resources as they are needed,

D. ASSETS, LIABILITIES AND NET ASSETS OR EQUITY

1. CASH AND CASH EQUIVALENTS

Cash consists of funds deposited in demand accounts and time deposit accounts. Forpurposes of the Statement of Cash Flows, the Village considers all highly liquidinvestments with a maturity when purchased of three months or less to be cashequivalents. At May 31, 2012, the Village did not have any cash equivalents. TheStatement of Cash Flows presented uses the direct method of reporting cash flows.

State statutes govern the Village's investment policies. The Village has its own writteninvestment policy stating that Village money must be deposited in FDIC-insuredcommercial banks or trust companies located within the State. The Village is authorized touse demand accounts and certificates of deposit. Permissible investments includeobligations of the U.S. Treasury and U.S. agencies, repurchase agreements, andobligations of the New York State or its localities. All demand accounts and time depositsaccounts are carried at cost. The Village had no investments as of May 31 ,2012.

-47-

1


May 31 ,2012

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

D. ASSETS, LIABILITIES AND NET ASSETS OR EQUITY (continued)

1. CASH AND CASH EQUIVALENTS (continued)

Collateral is required for demand deposits and time deposits accounts al 102% of alldeposits not covered by federal deposit insurance. The Village's investment policydefines acceptable forms of collateral as: Obligations that may be pledged as collateralinclude obligations of the United States and its agencies and obligations of the State andits municipalities and school districts.

2. RECEIVABLES AND PAYABLES

Receivables relating to governmental activities primarily include amounts due from othergovernments related to various grant agreements as well as amounts due from individualsand entities for services provided by the Village. ln addition, the Village's receivablesinclude the amount of Village owned tax certificates, including interest and fees. Acorresponding deferred revenue is reported in the governmental fund statement.

Receivables relating to business-type activities primarily consist of amounts due fromresidents and other entities for services rendered. Receivables are recorded and revenuesrecognized as earned or as specific program expenditures are incurred.

lnterfund transactions, exclusive of interfund services provided and used, have beeneliminated from the government-wide financial statements. ln the funds statements,interfund transactions include:

a) lnterfund Revenues

lnterfund revenues and interfund services provided and used, in the General Fundrepresent amounts charged for services or facilities provided by the General Fund.The amounts paid by the fund receiving the benefits of the service or facilities arereflected as an expenditure of that fund,

b) Transfers

Transfers represent payments between the General Fund and Capital Projects Fundfor residual equity transfers to close out completed capital projects as well astransfers to fund certain capital projects.

lnternal balances reported in the government-wide Statement of Net Assets,represent the portion of the net deficit in the lnternal Service Fund that was allocatedto the business-type activities in the current year.

3. INVENTORIES

lnventories in the General Fund and Water Fund, consisting of expendable supplies andspare parts held for consumption, are valued at average cost. These inventories areaccounted for on the consumption method and recorded as an expenditure at the time ofusage. ln the General Fund, amounts reported as inventory are equally offset bynonspendable fund balance amounts, indicating that they do not constitute "availablespendable resources" even though they are a component of net current assets.

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May 31 ,2012



4. CAPITAL ASSETS

Capital assets, which include property, plant, equipment and infrastructure assets, arereported in applicable governmental or business-type activities columns in the government-wide financial statements and in the fund financial statements for proprietary funds. Capitalassets purchased or acquired with an original cost of $500 or more and have a useful lifegreater than a year, are reported at historical cost or estimated historical cost. Contributedcapital assets are recorded at fair market value as of the date of the donation to the Village.

Costs incurred for repairs and maintenance are expensed as incurred. Renewals andbetterments are capitalized. lnterest has not been capitalized during the construction period

on property, plant or equipment.

lnfrastructure assets consisting of water mains are capitalized in the Water Fund.lnfrastructure assets for governmental activities acquired after December 31, 1980,consisting of certain improvements other than buildings including roads, curbs, sidewalks,drainage systems and sewer systems are capitalized along with other capital assets.

Depreciation on all assets is provided on the straight-line basis over the followingestimated useful lives:

Buildingslmprovements other than buildingsMachinery and equipmentI nfrastructure systems :

Roads, curbs and sidewalksDrainage systemsSewer systemsWater mains

20 - 50 years10 - 30 years3 - 25 years

20 years20 years50 years

100 years

ln the fund financial statements, capital assets are recorded as capital outlay expendituresin the governmentalfund upon acquisition.

5. DEFERRED REVENUE/UNEARNED REVENUE

Deferred revenues/unearned revenues are those where asset recognition criteria have beenmet, but which revenue recognition criteria have not been met. Such amounts includecollections in advance, unearned income and amounts that have been deemed to be"measurable" but not "available" to finance current expenses. Accordingly, the amountshave been recorded as deferred revenue in the fund statements and unearned revenue in

the government-wide statements.

6. LONG.TERMOBLIGATIONS

ln the government-wide financial statements and in the proprietary fund types of the fundfinancial statements, liabilities for long-term obligations consisting of compensatedabsences, claims and judgments payable, tax certioraris payable, other postemploymentbenefits payable, the capital loan payable, the special assessment bond payable andgeneral obligation bonds payable are reported as liabilities in the applicable governmentalactivities, business-type activities, or proprietary fund type Statement of Net Assets.

-49-


May 31 ,2012



6. LONG-TERM OBLIGATIONS (continued)

Bond premiums and discounts, as well as issuance costs, are deferred and amortized overthe life of the bonds on a straight-line basis. Bonds payable are reported net of applicablebond premium or discount. Bond issuance costs are reported as deferred charges andamortized over the term of the related debt.

ln the fund financial statements, governmental funds recognize bond premiums anddiscounts, as well as bond issuance costs, during the current period, in the fund servicingthe debt. The face amount of the debt issued is reported as other financing sources.Premiums received on debt issuances are reported as other financing sources whilediscounts on debt issuances are reported as other financing uses. lssuance costs, whetheror not withheld from actual debt proceeds received, are reported as debt serviceexpenditures.

Bond issuance costs that are immaterial are charged as an operating expense. Premiumsthat are immaterialwill not be amortized.

7. NET ASSETS AND FUND EQUITY CLASSIFICATIONS

ln the government-wide and proprietary fund financial statements equity is classified as netassets and displayed in three components:

a) lnvested in capital assets, net of related debt - consists of capital assets includingrestricted capital assets, net of accumulated depreciation and reduced by theoutstanding balances of any bonds, notes, or other borrowings that are attributable tothe acquisition, construction, or improvement of those assets. Accounts payable thatare related to capital projects are used in the calculation of invested in capital assets,net of related debt.

b) Restricted net assets - consists of net assets with constraints placed on the use eitherby (1) external groups such as creditors, grantors, contributors, or laws or regulations ofother governments; or (2) law through constitutional provisions or enabling legislation.

c) Unrestricted net assets - all other net assets that do not meet the definition of"restricted" or "invested in capital assets, net of related debt."

Governmental Accounting Standards Board Statement No. 54, "Fund Balance Repoftingand Governmental Fund Definitions" (GASB Statement No. 54) has been implemented.GASB Statement No. 54 changed the terminology and classification of fund balance toreflect spending constraints on resources rather than availability for appropriation. The fundbalance section of the governmental funds balance sheets have been modified accordingly.Not all of the Village's funds will necessarily have all of the components of fund balanceavailable to that fund. The implementation of these new components is intended to increaseclarity and help serve the needs of the financial statements users.

-50-


May 31 ,2012



7. NET ASSETS AND FUND EQUITY CLASSIFICATIONS (continued)

ln the fund financials statements, governmental funds report aggregate amounts for fiveclassifications of fund balances based on the constraints imposed on the use of theseresources; they are 1) nonspendable, 2) restricted 3) committed, 4) assigned, or 5)unassigned.

1) Nonspendable fund balance includes amounts that cannot be spent because they areeither (a) not in spendable form (i.e. prepaid items or inventories), or (b) will notconvert to cash within the current period (i.e. long term receivables and financialassets held for resale), or (c) legally or contractually required to be maintained intact(i.e. the principal of a permanent fund).

The spendable portion of the fund balance comprises the remaining four classificationsrestricted, committed, assigned, and unassigned.

2) Restricted fund balance reflects the constraints imposed on resources either (a)externally by creditors, grantors, contributors, or laws or regulations of othergovernments; or (b) imposed by law through constitutional provisions or enablinglegislation.

3) Committed fund balance reflects amounts that can only be used for specific purposesby a government using its highest and most binding level of decision makingauthority. The Village's highest decision making authority is the Board of Trustees,who by adoption of a Village ordinance prior to year end, can commit fund balance.Those committed amounts cannot be used for any other purpose unless the Board ofTrustees removes or changes the specified use by taking the same type of actionimposing the commitment. At May 31, 2012, the Village did not have any committedfund balance.

4) Assigned fund balance reflects the amounts constrained by the Village's "intent" to beused for specific purposes, but are neither restricted nor committed. The Board ofTrustees has the authority to assign amounts to be used for specific purposes.Assigned fund balances include all remaining amounts (except negative balances)that are reported in governmental funds, other than the General Fund, that are notclassified as nonspendable and are neither restricted nor committed.

5) Unassigned fund balance is the residual classification for the General Fund. lt is alsoused to report negative fund balances in other governmental funds.

When both restricted and unrestricted resources are available for use, it is the Village'spolicy to use restricted resources first, and then unrestricted resources - committed,assigned and unassigned - in order as needed.

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May 31 ,2012

1. SUMMARY OF SIGNIFICANT AGCOUNTING POLICIES (continued)

E. REVENUES AND EXPENDITURES/ EXPENSES

1. REAL PROPERTY TAX ASSESSMENT AND COLLECTION PROCEDURES

The Village's propertytaxes are levied and become a lien on June 1st, each fiscal year.

Taxes are levied based upon the taxable value of all real property located within theVillage. Taxes are recorded as a receivable on June 1st, and are payable one-half by July1st, and one-half by December 31st, each year. Current year delinquent property taxes notcollected by March 31st are placed on tax sale. Delinquent taxes not received within 60days of year end are recorded as deferred revenues in the fund statements.

For the year ended May 31 ,2012, the maximum amount of taxes which could be levied bythe Village based on the foregoing was $139,620,189. The actual real property taxes leviedby the Village for the year ended May 31 , 2012 was $44,560,340. The State Constitutionlimits the amount of revenue which the Village can raise from the real estate tax foroperating purposes to 2.OOo/o of the average full value of taxable real estate within theVillage for the most recent five year period plus any amounts required to pay principal and

interest on certain indebtedness.

2. OTHER POSTEMPLOYMENT BENEFITS

ln addition to providing pension benefits, the Village provides health insurance coverageand survivor benefits for retired employees and their survivors. Substantially all of theVillage's employees may become eligible for these benefits if they reach normalretirement age while working for the Village as well as meet certain years of servicerequirements.

Health care benefits in accordance with New York State Health lnsurance Rules andRegulations (administered by the New York State Department of Civil Service), areprovided through the New York State Empire Plan (the "Empire Plan") whose premiumsare based on the benefits paid throughout the State during the year.

The Village recognizes the cost of providing benefits by recording its share of insurancepremiums as an expenditure in the year paid. The Village's union contracts andordinances require that it provide its eligible enrollees with the Empire Plan benefitcoverage, or if another provider is utilized, the equivalent coverage. Under the provisionsof the Empire Plan, premiums are adjusted on a prospective basis for any lossesexperienced by the Empire Plan. The Village has the option to terminate its participationin the Empire Plan at any time without liability for its respective share of any previouslyincurred loss. The liability for other postemployment benefits is recorded as a noncurrentliability in the government-wide and proprietary fund statements in accordance withGASB Statement No. 45, "Accounting and Financial Reporting by Employers forPostemployment Benefits Other than Pensions."

3. COMPENSATED ABSENCES

The liability for vested or accumulated vacation and sick leave (compensated absences) isrecorded as current and noncurrent obligations in the government-wide and proprietaryfund financial statements. The current portion of this debt is estimated based on historicaltrends. The compensated absences liability and expense are reported in thegovernmental funds only if they have matured, for example, as a result of employeeresignation and retirements.

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May31,2012


E. REVENUE AND EXPENDITURES/EXPENSES (continued)

3. COMPENSATED ABSENCES (continued)

The amount that is expected to be liquidated with expendable available financial resourcesis reported as a liability in the funds statement in the respective fund that will pay it.

4. RISK MANAGEMENT

The lnternal Service Fund services all claims for risk of loss to which the Village is

exposed, including general liability and workers' compensation claims. All funds of theVillage participate, including the discretely presented component unit. Based on actuarialestimates, liabilities have been established in the self-insurance fund for claims reportedbut not paid, and incurred but not reported The Village allocates the cost of providingclaims servicing and claims payment by charging a "premium" to each fund. This chargeconsiders recent trends in actual claim experience of the Village as a whole and makesprovisions for catastrophic losses. The premiums paid by the operating funds areaccounted for as expenditures/expenses of the funds.

F. ENCUMBRANCES

Encumbrance accounting, under which purchase orders, contracts and other commitmentsfor the expenditure of monies are recorded for budgetary control purpose, is employed in thegovernmental funds. Encumbrances are reported as restrictions, commitments, orassignments of fund balances since they do not constitute expenditures or liabilities.Expenditures for such commitments are recorded in the period in which the liability isincurred. Appropriations for all governmentalfunds except the Capital Projects Fund lapse atyear end. However, encumbrances reserved against fund balance are re-appropriated in theensuing year.

G. USE OF ESTIMATES

The preparation of basic financial statements, in conformity with accounting principlesgenerally accepted in the United States of America, requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities, and disclosure ofcontingent assets and liabilities, at the date of the financial statements, and the reportedamounts of revenues and expenditures during the reporting period. Actual results could differfrom those estimates.

H. NEW PRONOUNCEMENTS

The Village has adopted all of the current statements of the Governmental AccountingStandards Board that are applicable. During the year ended May 31 , 2012, the Village hasadopted GASB Statement No. 54, "Fund Balance Reporting and Governmental Fund TypeDefinitions."

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May 31 ,2012


I. SUBSEQUENT EVENTS

Management has evaluated subsequent events for disclosure and/or recognitionfinancial statements through the date of the financial statements.

2. STEWARDSHIP, COMPLIANCE AND ACCOUNTAB¡LITY

A. BUDGETARY INFORMATION

Budqet Policies

in the

The Village follows the following procedures enumerated below in establishing the budgetarydata reflected in the financial statements:

a) Approximately four months prior to May 31st, the Village Administrator will submit aproposed operating budget for the General Fund for the fiscal year commencing June 1st.The operating budget includes proposed expenditures and the means of financing them.

b) Public hearings are conducted to obtain the public's comments on the proposed budget.On or before May 1st, the proposed budget is officially adopted by the Board of Trusteesand tax rates are established.

c) Revenues are budgeted by source. Expenditures are budgeted by department andcharacter (personal services, equipment and capital outlay, contractual expenditures, etc.)which constitutes the legal level of control. Expenditures and encumbrances may notexceed appropriations at this level. All budget revisions at this level are subject to finalapproval of the Board of Trustees. Within these control levels, the Village Auditor isauthorized to make transfer appropriations without Board approval.

d) Appropriations lapse at the close of the year to the extent that they have not beenexpended or encumbered. Activities of all funds, except the Capital Projects and AgencyFunds, are appropriated through this annual budget process and controlled through thepurchase requisition system. The Capital Projects Fund is approved through resolutionsauthorizing individual projects which remain in effect for the life of the project.

e) The budget for the General Fund is legally adopted for each year. Budgets are adopted ona basis of accounting consistent with GAAP, except that appropriations authorized for thecurrent year are increased by the amount of encumbrances carried fon¡vard from the prioryear. ln the event that actual revenues received exceed budgeted amounts, additionalbudgetary appropriations may be made. The Capital Project Fund is budgeted on a projector grant basis.

ln June 2011, New York State enacted Chapter 97, Laws of 2011 Real Property Tax Levy Capand Mandate Relief Provisions, which includes a 2.00o/o property tax cap for municipalities.Beginning in 2012 and lasting through at least June 15, 2016, no local government isauthorized to increase its property tax levy by more than 2.00% or the rate of inflation(whichever is less); however, local governments can exceed the tax levy limit by a 60% vote ofthe governing body and annually adopting a local law.

-54-


May 31 ,2012

2. STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY (continued)

B. FUND BALANCE

ln order to comply with GASB Statement No. 54, the fund balance section of the balancesheets of the governmental funds has been modified. The change has been made in order forthe Village's new fund balance components to focus on "the extent to which the government is

bound to honor constraints on the specific purposes for which amounts in the fund can bespent" (GASB Statement No. 54 paragraph 54). Previously, the fund balance section focusedon whether these resources were available for appropriation. lt also distinguished theunreserved fund balance from the reserved fund balance. ln order to show compliance withGASB Statement No. 54 however, the components of the new fund balance include thefollowing items, as needed: 1) nonspendable, 2) restricted 3) committed,4) assigned, or 5)unassigned.

The following table provides the detail regarding fund balance categories and classifications forthe governmental funds which show components of nonspendable fund balances, as well asthe purposes for restricted, and assigned fund balance. The unassigned fund balance is alsoshown.

GeneralFund

Capital ProjectsFund Total

Fund Balances:

Nonspendable:

lnventoryTotal Nonspendable

Restricted for:

Capital projects

Total Restricted

Assigned to:

Subsequent year's budgetPurchases on orderCapital projects and

contractual obligations

Compensated absences

Other assignmentsTotalAssigned

Unassigned, reported in:

General Fund

Total Unassigned

$ B06,5es806,595

$ 806,595

$ -0- 806,595

-0

16,751 '16 751

l6 751 16,751

179,072

2,964,244

614,293

896,426 896,426

3,235,20023,634

2,964,244

435,221

3,235,20023,634

6,658,299 1,075,498 7,733,797

I,610,984 1,610,984r,610 984 0 1,610,984

$ 9,075,878 $ 1,092,249Total Fund Balances

-55-

$ 10,168,127


May 31 ,2012

3. DETAIL NOTES ON ALL FUNDS

A. CASH AND CASH EQUIVALENTS

Custodial Credit Risk - Deposits/lnvestments - Custodial credit risk for deposits exists when,in the event of the failure of a depository financial institution, a government may be unable torecover deposits, or recover collateral securities that are in possession of an outside agency.Custodial credit risk for investments exists when, in the event of the failure of thecounterparty, a government will not be able to recover the value of its investments orcollateral securities that are in possession of an outside party.

GASB Statement No. 40 directs that deposits be disclosed as exposed to custodial credit riskif they are not covered by depository insurance, and the deposits are either:

. Uncollateralized,

. Collateralized with securities held by the pledging financial institution, or

. Collateralized with securities held by the pledging financial institution's trustdepartment or agent but not in the Village's name.

At May 31,2012, the Village's cash book balance was $24,990,730. This amount is inclusiveof Fiduciary Fund deposits of $2,792,673 but exclusive of petty cash of $1,850. The bankbalance was $25,453,918. Of the bank balance, $1,135,295 was covered by Federal depositinsurance, and $24,318,623 was covered by collateral held by the Village's agent, a third-party financial institution, in the Village's name.

At May 31,2012, the Village's component unit's cash book and bank balance was $300,823.This amount is exclusive of petty cash of $300. Of the bank balance, $70,371 was coveredby Federal deposit insurance, the remaining bank balance of $230,452 is commingled withthe Village's accounts and covered by collateral held by the Village's agent, a third-partyfinancial institution, in the Village's name, as mentioned above.

Credit Risk - State law and Village law limit investments to those authorized by Statestatues. The Village has a written investment policy.

lnterest-Rate Risk - lnterest-rate risk arises because potential purchasers of debt securitieswill not agree to pay face value for those securities if interest rates substantially inorease,thereby affording potential purchasers more favorable rates on essentially equivalentsecurities. Accordingly, such investments would have to be held to maturity to avoid apotential loss,

Concentration of Credit Risk - Credit risk can arise as a result of failure to adequatelydiversify investments. Concentration risk disclosure is required for positions of 5% or more insecurities of a single issuer.

As of May 31 ,2012, the Village of Garden City did not have any investments subject to creditrisk, interest-rate risk or concentration of credit risk.

-56-


May 31 ,2012

3. DETAIL NOTES ON ALL FUNDS (continued)

B. INTERFUND RECEIVABLE AND PAYABLE

The interfund receivable balance for the business-type funds and intedund payable balancefor the governmental funds at May 31, 2012 represents the current portion of the principalbalance for a loan made to provide a financing source for the purchase of equipment and issubject to a 2.OO% interest rate. All interfund receivable and payable balances which will bereimbursed subsequent to year end are stated as follows:

Amount Receivable Amount Payable

Governmental Fund:General Fund

Proprietary Fund:lnternal Service Fund

Governmental Fund:General Fund

Proprietary Fund:lnternal Service Fund

Total

Years ending May 31 , 201320142015

Total

$ 34,511

34,511

Total 34,511 $ 34,511

The noncurrent portion of the principal balance referred to as advances to/from other fundswill be reimbursed over a two year period beginning with the Village's year ending May 31,2013 and is stated as follows:

Amount Receivable Amount Payable

$

$

$

$

71 108

71,108

$ 71,108

$ 71,109

The annual payment requirement including principal and interest for the short-term portion ofthe interfund loan and the associated long-term advance to/from other funds is as follows:

Principal lnterestTotal Principaland lnterest

$ 34,51135,20235,906

$ 105,619

$ $2,1131,422

718

36,62436,62436 624

$ 4,253 $ 109,872

-57 -

INCORPORATED VILLAGE OF GARDEN GITYNOTES TO FINANCIAL STATEMENTS

May 31 ,2012


C. CAPITAL ASSETS

Capital asset activities for the year ended May 31 ,2012 are as follows:

Balance

Governmental activities:

Capital assets not being depreciated:Land

Depreciable capital assets:

Buildings

lmprovements other than buildings

Machinery and equipment

lnfrastructure:

Roads, curbs and sidewalks

Drainage and sewer systems

Total depreciable capital assets

Less accumulated depreciation:

Buildings


Machinery and equipmentlnfrastructure:

Roads, curbs and sidewalks

Drainage and sewer systems

June 1,2011

$ 16,603,615

22,162,7497,018,109

17,809,214

35,370,986

10,739,159

93.100.217

Additions

901,407

54,667 $

263,675

2,211,571

Balance

May 31,2012

$ 16,603,615

23,064,156

6,848,542

18,072,889

37,582,557

10,739,159

Deletions

$224,234

3,431,320 224,234 96,307,303

14,015,197

5,060,703

13,436,829

17,154,966

5,659,1 1 I

1,'151,956

337,1 80

880,678

1,617,340

324,860

210,600

15,167,153

5,397,88314,106,907

18,772,306

5,983,978

Total accumulated depreciation $ 55,326,813 $ 4,312,014 $ 210,600

Total net depreciable capital assets


Depreciation expense was charged to governmental functions as follows:

General government support

Public safety

Transportation


Home and community services

Total depreciation expense - governmental activities

59,428,227

36,879,076

$ 53,482,691

$ 960,549

320,026

1,276,166

1,136,661

618,612

$ 4,312,014

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May 31 ,2012


C. CAPITAL ASSETS (continued)

A summary of changes within the businesstype activities capital assets for the year endedMay 31 ,2012 is as follows:

Balance

June 1, 201 1 Additions Deletions

Balance

I'llay 31 ,2012Business-type activities:

Capital assets not being depreciated:

Land

Construction in progress

Total capital assets not being depreciated

Depreciable capital assets:

Buildings



Total depreciable capital assets

Less accum ulated depreciation:

Buildings



Total accum ulated depreciation

Total net depreciable capital assets


69,212

57,670 $ 2,796,413 $ 602

$ $ 69,212

2,251,67013

126,882 2,796,413 602,413 2,320,882

8,246,138

14,521 ,699

13,045,332

641,400

186,583

8,246,1 38

15,163,099

13,231,915

35,813,169 827,983 -0- 36,641,152

5,762,993

4,613,873

7,338,474

230,635

357,600

805,028

5,993,628

4,971,473

8,143,502

Depreciation expense was charged to functions as follows:


Home and community servrces

Total depreciation expense - business-$pe activities

$ 17,715,340 $ 1,393,263 $ -0- 19,108,603

17,532,549

$ 19,853,431

$ 188,338

1,204,925

$ 1,393,263

Depreciation for the Village is recorded on the straight-line basis over the estimated usefullives, in years, of the respective assets.

The Village evaluates prominent events or changes in circumstances affecting capital assets todetermine whether impairment of a capital asset has occurred. The Village's policy is to record

an impairment loss in the period when the Village determines that the carrying amount of theasset will not be recoverable. At May 31 , 2012, the Village has not recorded any such

impairment losses.

D. INDEBTEDNESS

LONG.TERM DEBT

Capital Loans Payable

The Village's capital loans payable consists of two loans, of which the borrowings were used

to finance capital projects, due to an outside third party, New York Power Authority ("NYPA').The capital loans bear interest at a variable rate and will mature during fiscal year ending2017 . At May 31, 2012, the principal balance on these loans was $762,809.

-59-


May 31 ,2012


D. INDEBTEDNESS (continued)

LONG-TERM DEBT (continued)

Gapital Loan Payable (continued)

The future principal and interest payments, utilizing the year end variable rate of 0.88%, forthe capital loans are as follows:

Total PrincipalPrincipal lnterest and lnterest

Years ending May 31 , 20132014201520162017

$ $175,771177,324178,891180,47250 351

6,0054,4522,8851,304

81

$ 181,776181,776181,776181,776

50,432

$ 777,536Total $ 762,809 $ t4,727

Special Assessment Bond Payable

The Village has $1,130,000 of special assessment debt outstanding from an original issue of$2,250,000 to provide funds for the improvement of a parking lot. The Village receives84.949% of the resources to repay the debt from amounts levied against the property ownersdirectly benefiting from the capital project financed. The remaining 15.051% of the debtservice requirements is funded by the Village's general revenues. ln the event that a

deficiency exists because of unpaid or delinquent special assessments at the time a debtservice payment is due, the Village must provide resources to cover the deficiency until otherresources are received. As of May 31,2012, there were no unpaid or delinquent specialassessments. The bond has interest rates ranging from 4.10% to 4.13% and are payableover the next four years.

The future principal and interest payments for the special assessment bond is as follows:


Years ending May 31 , 2013201420152016

$ $ $240,OQO

285,000305,000300 000

46,61336,71324,95612,375

286,613321,713329,956312,375

Total $ 1,130,000 $ 120,657 $ 1,250,657

-60-




General Obligation Bonds Payable

Description of lssue and Purpose

The Village borrows money in order to acquire land, or equipment or to construct buildings andimprovements. These long-term liabilities, which are the full faith and credit debt of the Village,are reported as governmental and business{ype activities.

At May 31,2012, bonds payable consisted of the following individual issues:

Governmental Activities :

Original Year of Final lnterest


May 31 ,2012

Maturity RateOutstanding

Balance

Acquisition of St. Paul's land, 2003Various purposes serial bonds, 2003Sewer Pump, Cedar Valley, and

Meadow,2003Building construction, 2006Library reconstruction, 2008Community Park improvements, 2008Village Hall improvements, 2010Various road and lighting improvements,

resurfacing of parking fields, 2012

Busi ness-type Activities :

Description of lssue and Purpose

Water Fund:Water system improvements,

serial bonds, 2006Water system im provements,

serial bonds, 2008Water system im provements,

serial bonds,2010Pool Fund:

Pool reconstruction, 2002Pool improvements, 201 2

Tennis Fund:Tennis structure, 2002

$ 3,345,6952,239,500

942,449950,000

1,005,0002,350,0002,555,500

OriginalDebt

3,875,000 2027

20132013

2.250Yo - 4.OOO%

2.250% - 4.000%

2.2500/0 - 4.000%4.1000/" - 4.200%3.000% - 3.380%3.000% - 3.600%1.500% - 3.500%

lnterestRate

185,000190,000

50,000650,000605,000

'1,690,000

2,315,000

$

20132021201720222025

2.000o/o - 2.6250/0 3,875,000

Total Governmental Activities $ 9,560,000

Year of FinalMaturity

OutstandingBalance

$ 1,585,000

4,365,000

4,210,000

950,0002,135,000

600,000

2021 4.100% - 4.200%

2022 3.000% - 3.600%

2025 1.500% - 3.500%

2017 4.300% - 4.750%2027 2.000% - 2.625%

2017 4.3000/0 - 4.750%

Total Business-type Activities

$ 1,095,000

3,125,000

3,755,000

394,0002,135,000

.000

-61 -

$ 10,750,000


May 31 ,2012




General Obligation Bonds Payable (continued)

Future principal and interest payments for the general obligation bonds are as follows:

Governmental Activities :


Years ending May 31 , 20132014201520162017

2018 - 20222023 - 2027

Busi ness-type Activities :

$ 1,010,0001,005,0001,015,0001,015,000

955,0003,835,000

725,000

259,541228,790203,496178,002152,509427,258

51 508

$ 1,269,5411,233,7901,218,4961J93,0021 ,107,5094,262,258

776 508

$

Total $ 9,560,000 $ 1,501,104 $11,061,104

Water Fund Pool Fund Tennis Fund

Principal lnterest Pilncipal lnterest lntercst

Total Principal

and lnterest

YearsendingMay3l, 2013 $

2014

2015

201 6

2017

2018 -2022

2023 -2027

865,000 $

865,000

870,000

875,000

725,000

3,280,000

495,000

245,248

221,560

1 9i,766

141,054

1 49,560

398,153

33,413

$ 77,000

207,000

21 0,000

21 0,000

210,000

660,000

955,000

$ 64,710

63,1 18

56 956

50,556

44,156

162,61 I72,795

$ 1,31 1 ,463

1,414,023

1,391,847

1,331,360

1,181,091

4,500,771

1,556,208

Principal

$ 48,000

48,000

50,000

50,000

50,000

$ 11 505

I 345

7 125

4 750

2375

Total $ 7,975,000 $ 1,386,754 $ 2,5æ,000 $ 514,909 $ 246,000 $ 35,100 $ 12,686,763

-62-

INCORPORATED VILLAGE OF GARDEN GITYNOTES TO FINANCIAL STATEMENTS

May 31 ,2012



CHANGES IN LONG.TERM LIABILITIES

Long-term liability activities for the year ended May 31 ,2012 are as follows:

Balance

June 1,2011

Noncurrent

Balance liabilities due

lncreases Reductions May 31, 2012 within one vear

Noncurrent

líabilities

Governmental Activities:General obligation bonds

Plus premiums on issuance

Total general obligation bonds


Claims and judgments payable

Tax certioraris payable

Other postemployment

benefits payable

Capital loans payable

Special assessment bond payable

with governmental commitment

Governmental activities

long{erm

Business-type Activities:General obligation bonds

Plus premiums on issuance

Total general obligation bonds


Other postemployment

benefits payable

Business-type activities

$ 3,875,000 $

60,687$ 6,795,500

14,500

1 ,1 10,500 $

2,618

9,560,000

72,569$ 1 ,010,000

6,664

$ 8,550,000

65.905

6,810,000

7,785,844

8,409,434

2,800,000

3,935,687

707,076

1,712,872

1,847,662

7,581,713

1 ,'t 13,1 18

785,087

1,371,159

1,744,662

1 ,916,505

175,202

9,632,569

7,707,833

8,7s',t,147

2,903,000

22,751,021

762,809

1 ,016,664

385,392

1,570,452

2,903,000

8,615,905

7,322,441

7,180,695

22,751,021

587,038

17,085,813

938,011 17 5,771

240,0001,370,000 240,000 1,130,000 890,000

activities $45,199,102 $15,785,010 $ Z 733 $ 53,638,379 $ 6,291 ,279 $ 47,347,100

$ 9,695,000 $ 2,135,000 $

15,697 33,768

2,168,768

$ 10,750,000 $

46,675

1,080,000

2,790

990,000

5,041

$ 9,760,000

41.634

9,710,697

301,667

1,226,796

41,253

1,082,790

21.167

90,263

10,796,675

321,753

995,041

16,088

9,801,634

305,665

't,702,081565,548 702.0811,

long{erm activities $11,239,160 $ 2,775,569 g't,194,220 $ 12,820,509 $ 1,011,129 $ 11,809,380

The liabilities for compensated absences, other postemployment benefits payable and generalobligation bonds payable will be liquidated through future budgetary appropriation in the fundthat gave rise to the liability. The liability for claims and judgments payable will be liquidatedthrough the lnternal Service Fund and tax certioraris payable, the capital loans payable and thespecial assessment bond payable will be liquidated through the General Fund.

E. RETIREMENT SYSTEMS

Plan Descri

The Village participates in the New York State and Local Employees' Retirement System(ERS), the New York State and Local Police and Fire Retirement System (PFRS) and thePublic Employees' Group Life lnsurance Plan (collectively known as the "Systems"). These are

cost-sharing multiple-employer retirement systems. The Systems provide retirement benefitsas well as death and disability benefits.

-63-


May 31 ,2012


E. RETIREMENT SYSTEMS (continued)

Plan Description (continued)

Obligations of employers and employees to contribute and benefits to employees are governed

by the New York State Retirement and Social Security Law (NYSRSSL). As set forth in the

NYSRSSL, the Comptroller of the State of New York (the "Comptrolle/') serves as sole trusteeand administrative head of the Systems. The Comptroller shall adopt and may amend rules

and regulations for the administration and transaction of the business of the Systems and forthe custody and control of their funds. The Systems issue a publicly available financial reportthat includes financial statements and required supplemental information. That report may be

found at www.osc.state.ny.us/retire/publications/index.php or obtained by writing to the New

York State and Local Retirement System, 110 State Street, Albany, NY 12244.

Fundinq Policv

The Systems are noncontributory except for employees who joined the New York State and

Local Employees' Retirement System after July 27, 1976, who contribute 3.00% of their salaryfor the first ten years of membership, and employees who joined on or after January 1,2010(ERS) or January 9,2010 (PFRS) who generally contribute 3.00% of their salary for their entire

length of service. Under the authority of the NYSRSSL, the Comptroller annually certifies theactuarially determined rates expressed as proportions of payroll members, used in computingthe employers' contributions based on salaries paid during the System's fiscal year ending

March 31.

The Village is required to contribute at an actuarially determined rate. The actual contributionswere equal to 100% of the actuarially required amounts. The credits and miscellaneousadjustments represent modifications made by the ERS and PFRS to the prior year's

contributions due to differences between estimated and actual salaries for the plan year.

Contributions for the current year and two preceding years were equal to 100.00% of thecontributions required, and were as follows:

Annual Required Contribution - ERS

Amount

Credits &MiscellaneousAdiustments

PrepaymentDiscount

TotalPayment

2012 $20112010

2,304,222I ,651 ,1851 ,035,916

Amount

25,099 $(46,463)(61,4O2)

(20,e73) $(15,364)

(9,330)

2,308,3481,589,358

965,1 84

$

Annual Required Contribution - PFRS

Credits &MiscellaneousAdiustments

PrepaymentDiscount

TotalPayment

2012 $2011

2010

2,089,2781,704,572

1,314,345

(80,701) $62,511

(127,746)

(18,029) $(16,919)

(10,820)

1,990,5481,750,164

1,175,779

$

-64-


May 31 ,2012


E. RETIREMENT SYSTEMS (continued)

Fundinq Policv (continued)

Amounts due to New York State Retirement Systems reported in the governmental fund andbusiness{ype activities represent the approximate contribution to the ERS and PFRS for themonths of April and May 2012.

F. OTHER POSTEMPLOYMENT BENEFITS

Plan Description

The Village, a participant in a single-employer defined benefit plan, has collective bargainingcontracts with four associations a) Civil Service Employees Association, lnc., b) Civil ServiceEmployees Association, lnc.'s Supervisor Unit, c) Garden City Police Benevolent Associationand d) Professional Firefighters Association of Nassau County. These contracts will berenegotiated at various times in the future.

The Village, in accordance with its contract with Civil Service Employees Association, lnc. andCivil Service Employees Association, lnc.'s Supervisor Unit will pay 90% of the premium costsfor medical insurance coverage (currently provided by the New York State Empire Plan andHIP) at retirement, provided the employee retired afterJune 1,2001 and had been employedby the Village for at least fifteen years. The Village will pay 90% of the individual and 75% ofthe family premium costs for employees hired prior to June 1,2001 who retire after June 1,

2001 and have been employed by the Village for at least ten years but less than fifteen years.

The Village, in accordance with its contract with Garden City Police Benevolent Associationand Professional Firefighters Association of Nassau CounÇ, will pay 100o/o of the premiumcosts for medical insurance coverage (currently provided by the New York State Empire Planand HIP) at retirement, provided the employee had been employed by the Village for at leastten years.

All retirees are eligible for Medicare reimbursement in the amount of $1,157 per year for thoseenrolling prior to January 1, 2010, $1,326 per year for those enrolling from January 12, 201Qand before January 1, 2011, $1,385 per year for those enrolling subsequent to January 1,2011and before January 1,2012 and $1,199 per year for those enrolling on January 1,2012 andafter. Upon death of a retiree, the Village will cease to pay any portion of the health insurancepremium for the surviving spouse, however the spouse is still eligible for Medicarereimbursement.

GASB 45 allows plan sponsors to utilize the results of an actuarial valuation for multiple years ifno significant changes have occurred since the prior valuation was performed Accordingly, theVillage's OPEB valuation for the fiscal year ending May 31 , 2012 is based on the employeedata, plan provisions, methods and assumptions described in the actuarial valuation for theyear ending May 31 ,2010.

-65-


May 31 ,2012


F. OTHER POSTEMPLOYMENT BENEFITS (continued)

Plan Description (continued)

The Village, as administrator of the plan, does not issue a separate report.

The number of participants as of June 1,2010, the effective date of the most recent OPEBvaluation, is as follows:

Primary Governmental Business-typeGovernment Activities Activities

18Active employeesRetired employees

Total

290209

272202 7

499 474 25

There have been no significant changes in the number of employees or the type of coveragesince that date.

Fundinq Policv

The Village currently pays for other postemployment benefits (OPEB) on a pay-as-you-gobasis. GASB Statement No. 45 does not require that the unfunded liability actually beamortized nor that it be funded, only that the unfunded accrued liability is accounted for and incompliance in meeting its Annual Required Contribution (ARC). However, if the liability is

funded, assets must be transferred to a qualifying irrevocable trust or equivalent arrangementfor the exclusive benefit of plan members and must be protected from creditors. At this time,there is no New York State statute providing local governments with the requisite authority forestablishing another postemployment benefits trust. Therefore, these financial statements arepresented on a pay-as-you-go basis until a funding mechanism is authorized for municipalitiesby New York State statute.

Annual Other Postemplovment Benefit Cost and Net Obliqation

For the year ended May 31 , 2012, the Village's annual other postemployment benefits cost(expense) was $8,147,261 of which $7,581,713 was related to governmental activities and$565,548 was related to business-type activities. The annual expense, inclusive of currenthealth insurance premiums, totaled $2,006,768 for retirees and their beneficiaries, of which$1,916,505 was related to governmental activities and $90,263 was related to business-typeactivities. The result was an increase in the other postemployment benefits liability of$6,140,493, of which $5,665,208 was related to governmental activities and $475,285 wasrelated to business-type activities for the year ended May 31 , 2012. The active and retiredemployees of the Village's discretely presented component unit are included in governmentalactivities portion of the OPEB liability.

-66-


May 31 ,2012



Annual Other Postemplovment Benefit Cost and Net Obliqation (continued)

Benefit Ob and Normal Cost

Primary

Govemment

Governmental

Activities

Business-type

Activities

Actuarial Accrued Liability (AAL)

Active employees

Retired employees

Total Actuarial Accrued Liability (AAL)

Actuarial value of plan assets

Unfunded actuarial accrued liability (UAAL)

Funded Ratio

Normal cost at the beginning of the year

Amortization cost at the beginning of the year

Annual covered payroll

UAAL as a percentage of covered payroll

$ 92,989,078 $ 86,796,154 $ 6,192,924

$$$ 57,023,770

35,965,308

52,484,393

34,311,761

4,539,377

1,653,547

92,989,078

-0-

86,796,154

-0-

6,192,924

-0-

$

$

$

0.00%

2,937,094

s,171,806

24,991,040

372.09o/o

0.00%

2,719,310

4,827,372

n/a*

n/a*

0.000/o

217,784

344,434

$

$

$

$

n/a*

n/a*

* lnformation was only available for the total primary government

The Village's annual other postemployment benefit cost is calculated based on the annualrequired contribution (ARC) of the employer, an amount actuarially determined in accordancewith the parameters of GASB Statement No. 45. The ARC represents a level of funding that, ifpaid on an ongoing basis, is projected to cover normal cost each year and amortize anyunfunded actuarial liabilities (or funding excess) over a period not to exceed thirty years. Theunfunded actuarial accrued liability for the Village for the year ended May 31 , 2012 amountedto $92,989,078.

-67 -


May 31 ,2012



Annual Other Postemplovment Benefit Cost and Net Obliqation (continued)

The following table shows the components of the Village's other postemployment benefitsliability:

Level Dollar Amortization MethodCalculation of ARC under the Unit Credit Cost Methocl

PrimaryGovernment

GovernmentalActiv¡ties

Business-typeActivities

Normal cost

Amortizat¡on of unfunded actuarial liabìlity(UAAL) over 30 years

lnterest

Annual required contribution (ARC)

lnterest on net OPEB obligation

Adjustment to ARC

OPEB Cost

Less: Contribut¡on for year ended May 31,2012

lncrease in other postemployment benefits liability

Other postemployment benefits liability at May 31, 2011

Other postemployment benefits liability at May 31,2012

Percent of annual OPEB cost contributed

Annual OPEBCost

$ 2,937,094

5,171 ,806

324,356

2,719,310

4,827,372

301,867

217,784

344,434

22,489

$ $

8,433,256

732,504

(1 ,018,499)

7,848,549

683,432

(950,268)

584,707

49,072

(68,231)

8,147,261

2,006,768

7 ,581 ,713

1 ,916,505

565,548

90,263

6,140,493

18,312,609

$ 24,453j02

5,665,208

17,085,81 3

475,285

1,226,796

s 22.751,021 $ 1,702,081

AnnualContribution

Made

24.630/o

PercentageContributed

Net OPEBObligation

25.28% 15.96%

Funded Status and Fundinq Proqress

The percentage contributed, as it relates to the Village, for the current year and the precedingtwo years were:

May 31 ,2012 $May 31,2011May 31 ,2010

8,147,2618,248,1187,406,833

$ 2,006,7681,790,1751,694,082

Unfunded

ActuadalAccrued

Liabilitv UPvAL) Funded Ratio

g 24,453,10218,312,60911,854,666

24.630/o

21.70o/o

22.87%

The funded status of the plan as of June 1,2010 is as follows:

Actuarial Accrued

Liability (AAL)

ActuarialValue of

Plan Assets

UMLasa

Percentage of

Covered Payroll Covered Payroll

-0- $ 92,989,078Primary Govemment $ 92,989,078 $

-68-

0 00% $ 24,991,040 372.09010


May 31 ,2012



Funded Status and Fundinq Proqress (continued)

The schedule of funding progress, presented as required supplementary information followingthe notes to the financial statements, presents multi-year trend information about whether theactuarial value of plan assets is increasing or decreasing over time relative to the actuarialaccrued liability for benefits.

Actuarial Methods and Assumptions

The projection of future benefits for an ongoing plan involves estimates of the value of reportedamounts and assumptions about the probability of occurrence of events far into the future.Amounts determined regarding the funded status of a plan and the employer's annual requiredcontributions are subject to continual revision as actual results are compared with pastexpectations and new estimates are made about the future.

Projections of benefits for financial reporting purposes are based on the substantive plan (theplan as understood by the employer and the plan members) and include the types of benefitsprovided at the time of each valuation and the historical pattern of sharing benefit costsbetween the employer and plan members to that point. The actuarial methods andassumptions used include techniques that are designed to reduce the effects of short{ermliability in actuarial accrued liabilities, consistent with the long-term perspective of thecalculations.

ln the June 1 , 2010 actuarial valuation, the liabilities were computed using the projected unitcredit actuarial cost method and level dollar amortization method over an open 30 yearamortization period to amortize the initial unfunded liability. The actuarial assumptions utilized a4.0% interest rate and a 4.0% inflation rate. The valuation assumes an initial 8.5o/o-19.5o/o

healthcare cost trend and post-retirement benefit increase (inclusive of the 4.Oo/o inflation rate)and reduced increments to a rate of 5.0% after ten years. The actuarial valuation does notincorporate an assumption for projected salary increases as the projected unit credit actuarialcost method does not include a salary component.

G. COMPENSATED ABSENCES

Village employees are granted vacation and sick leave and earn compensatory absences in

varying amounts. ln the event of termination or upon retirement, an employee is entitled topayment for accumulated vacation, personal leave and sick leave at various rates subject tocertain maximum limitations.

Estimated vacation, sick leave, and compensatory absences accumulated by governmentalfund type employees have been recorded in the Statements of Net Assets. Vested vacation,personal leave and sick leave accumulated by business type employees have been recorded in

proprietary funds as a liability and expense. Payment of vacation time and sick leave is

dependent upon many factors, therefore, timing of future payments is not readily determinable.However, management believes that sufficient resources will be made available for thepayments of vacation, sick leave, and compensatory absences when such payments becomedue. As of May 31,2012, the value of the Village's accumulated vacation time and sick leave forgovernmental and business-type activities was $8,029,586, of which $3,235,200 was includedin the assigned fund balance of the General Fund.

-69-


May 31 ,2012

4. COMMITMENTS AND CONTINGENCIES

A. RISK MANAGEMENT

ln common with other municipalities, the Village receives numerous notices of claims. TheVillage established a self-insurance risk management program for general liability and

workers' compensation claims which is accounted for in the lnternal Service Fund. Withrespect to those insurance needs which are being self-insured, the Village has umbrellapolicies which provide for (1) $30,000,000 of coverage per year for general liability claimswhich on a case by case basis are more than $200,000 ($3,000,000 in the aggregate) and

(2) $2,000,000 of coverage per year for workers' compensation claims filed prior to August 1,

2011 which, on a case by case basis, are more than $400,000. During the year, the Villagepurchased an insurance policy which covers all workers' compensation claims incurred afterAugust 1, 2011. There have been no significant reductions in insurance coverage as

compared to the prior year, and there were no settlements in excess of insurance coverageover the last three years.

The actuarially determined lnternal Service Fund liabilities are reported when it is probable

that a loss has occurred and the amount of that loss can be reasonably estimated. Liabilitiesinclude an amount for claims that have been incurred but not reported. Claims liabilities arereevaluated periodically to take into consideration recently settled claims, the frequency ofthe claims, and other economic and social factors. The Village's discretely presented

component unit is included in the Village's risk management program for both workers'compensation and general liability claims.

At May 31, 2012, the lnternal Service Fund had a deficit fund balance of $1,504,866. Thisdeficit is being addressed through an increase in future premiums. The Enterprise Funds'portion of the lnternal Service Fund's deficit is approximately $106,600 and has beenreported as an internal balance in the government-wide financial Statement of Net Assets ofNet Assets.

B. SELF.INSURANCE PROGRAM

The schedule below presents the changes in claim reserves for general liability and workers'compensation for the years ended May 31 ,2012 and 2011:

Workers' GeneralCom Liabilitv

2012 2011 2012 2011

$ 5,954,670 $ 5,409,251 $ 2,454,764 $2,220,019Unpaid claims as of June 1,

lncurred claims:Provision for insured events

of the current fiscal year

lncrease/ (decrease) in netprovision for insured events of

prior fiscal years

Total incurred claims andclaim adjustments

Payments:Claims during the current year

Unpaid claims as of May 31,

-0-* 1,291,943 606,630 569,056

1120.994 1.010.931 n4.572\ 1.37 1.639

1,120,994 2.302.874 591 87 1.940.695

874,223 1,757.455 496,963 1, 705.950

$_ß.n1A41 $__5*954-020 $-2*549,200 $2.Æ4Jß4*The Village purchased a workers' compensation insurance policy during the fiscal year endedMay 31 , 2012, which will provide coverage for workers' compensation claims occurring afterAugust 1,2Q11. Therefore, there is no provision for self-insured workers'compensation eventsin the current fiscal year.

_ 70 _


MaY 31 ,2012

4. COMMITMENTS AND CONTINGENCIES (continued)

B. SELF-INSURANCE PROGRAM (continued)

During the year ended May 31 , 2012, the lnternal Service Fund charged the followingpremiums:

Primarv G rnment:General FundWater FundPool FundTennis Fund

Component Unit:Garden City Public Library

$ 2,957,096168,386

59,6727.898

3,193,052

136,800

Total Premiums $ 3.329.852

C. LEGALSETTLEMENT

The Village was a member of the plaintiff class in a class action lawsuit against a majority ofthe major petroleum companies for contamination of the Village's water supply with methyltertiary butyl ether. This lawsuit was settled in April 2010 and the Village's portion was

$1,372,036 net of legal costs. The Village recognized $1,349,757 of the settlement in prioryears and the remaining $22,279 in the year ended May 31, 2012. These payrnents are

recorded as a non-operating revenue in the Water Fund's Statement of Revenues, Expenses,and Changes in Net Assets.

D. GENERAL LITIGATION

Consistent with other municipalities, the Village has been named a defendant in various legal

actions in the course of ordinary operations. The Village has accrued for all estimated andprobable contingent losses. The Village primarily funds settlements of legal actions throughcurrent operating funds; however, the Village has the ability to fund settlements throughbonding if deemed necessary. An estimate cannot be made on certain of the legal actions thathave possible unfavorable outcome against the Village. ln the opinion of the Village'smanagement, the potential loss on all claims will not materially affect the Village's financialposition.

E. TAX CERTIORARI PROGEEDINGS

From time to time, the Village is involved in tax certiorari proceedings under which taxpayersseek reduction in the assessed value of property upon which taxes are measured. A reductionin assessed valuation may result in a refund of real property taxes previously paid by theclaimant. The amount refunded to Village taxpayers as a result of tax certiorari proceedings

was $1 ,744,662 for the year ended 2012.

F. CONSTRUCTION AND OTHER CAPITAL ACQUISITION COMMITMENTS

Construction in progress commitments for equipment purchases and other capital acquisitioncommitments amounting to $195,823 are restricted or assigned in the Capital Projects Fund.

-71 -


May 31 ,2012

5. SUBSEQUENT EVENT

On October 29,2012, Hurricane Sandy made landfall on Long lsland, affecting the lncorporatedVillage of Garden City. As of the date of this report, the Village's capital assets do not appear tobe severely damaged or impaired, however there were additional expenditures which wereincurred and will continue to be incurred, relating to the clean-up and the maintaining of publicsafety conditions in the Village. Management is not able to quantify the total costs of this stormat this time, however the Village will apply for Federal and/or State aid, as available, to assistwith these costs. Based on past experience, aid has been made available to the Village forsimilar storm costs.

6. NEW PRONOUNCEMENTS

The GASB has issued Statement No. 61 "The Financial Reporting Entity: Omnibus - anamendment of GASB Statements No. 14 and No. 34". This statement modifies certainrequirements for inclusion of component units in the financial reporting entiÇ. The requirements ofthe new statement become effective for fiscal periods beginning after June 15,2012.

The GASB has issued Statement No. 63 "Financial Reporting of Deferred Outflows of Resources,Deferred lnflows of Resources, and Net Position". This statement is for presentation purposesonly. The requirements of the new statement become effective for fiscal periods beginning afterDecember 15,2011.

The Village is currently evaluating the impact of the above pronouncements

-72-

REQUIRED SUPPLEM ENTARY I NFORMATIONOTHER THAN

MANAGEMENT'S DISCUSSION AND ANALYSIS

Schedule of Revenues, Expenditures, and Ghanges in FundBalance - Budget and Actual- General Fund

Schedule of Funding Progress for Other Post-EmploymentBenefits (OPEB)

NOTES TO REQUIRED SUPPLEMENTARY INFORMATION

The budgets are adopted on a basis of accounting consistent withGAAP, except that appropriations authorized for the current year areincreased by the amount of encumbrances carried forward from theprior years. ln the event that actual revenues received exceedbudgeted amounts, additional budgetary appropriations are made.The capital projects are budgeted on a project or grant basis.

-73-


SCHEDULE OF REVENUES, EXPENDITURES, AND

CHANGES IN FUND BALANCE - BUDGET AND ACTUALGENERAL FUND


OriginalBudqet

FinalBudget Actual

VariancePositive

(Neqative

REVENUES

Real Property TaxesReal property taxes

Total Real Property Taxes

Other Real Property Tax ltemsPayment in lieu of taxeslnterest and penalties on real property tax

Non-Property Tax ltemsPublic utilities gross receipts taxCounty sales taxFranchise fees

Departmental lncomeCharges for tax advertisingSafety inspection feesParking lots and garagesZoning feesDump permitsSewer chargesRefuse and garbage feesPark and recreational chargesPublic works serviceHealth feesPlanning commission feesArchitectural design review feesUtility permit fees

Intergovernmental GhargesFire protection servicesSewer services

Use of Money and Propertylnterest and earningsCommissionsRental real property

$ 44,580 ,340 $ 44,566,731$ 44,580,340

44,580,340

$ (13,609)

44,s80,340 44 731 (13,609)

610,080105,050

610,08010s,050

604,2681 14,093

(5,812)9,043

Total Other Real Property Tax ltems 715,130 715j30 718,361 3 .231

700,00060,267

700,00060,267

240,000

671,42462,159

262 153

(28,576)1,892

22.153240 000

Total Non-Property Tax ltems 1,000,267 1,000,267 99s,736 (4,531)

2,500562,500220,000

30,0001,2502,800

220,000478,760225,O00

6,0002,000

10,000

2,500562,500220,000

30,0001,2502,800

220,000478,760225,000

6,0002,000

10,00012,100

1,675546,460178,89634,7504,920

10

130,380508,364195,776

6,6903,500

29,000

(825)(16,040)(41,104)

4,7503,670

(2,7e0)(89,620)29,604

(29,224)690

1,50019,000

12 100 12 1

Total Departmental lncome 1,772p10 772 910 1,640,421 (132,4891

25,000345

25,000345

17,250435

(7,750)90

Total lntergovernmental Charges 25,345 25,345 17,685 (7,66!)

140,0005,000

108,375

140,0005,000

108,375

102,3333,788

I 13,865

(37,667)(1,212)5,490

253,375 (33,389)Total Use of Money and Property

-74-

253,375 219,986

(Continued)


SCHEDULE OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCE - BUDGET AND ACTUAL

GENERAL FUNDYear Ended May 31,2012

OriginalBudget

FinalBudqet Actual

VariancePositive

(Neqative)

REVENUES (continued)

Licenses and PermitsBusiness and occupational licensesDog license fund apportionmentPermits

Fines and ForfeituresFines and forfeited bailForfeiture of deposits

Minor sales - otherSales of equipmentlnsurance recoveriesOther compensation for losses

Total Licenses and Permits 125,325

4,5003,500

117.325

4,5003,500

117,325

4,0808,022

114,981

(420)4,522(2.344\

125,325 127 083 7581

1,300,0001,500

1,300,0002,228

1,129,9202,000

(170,080)(228)

Total Fines and Forfeitures 1,301,500 1,302,228 1,131,920 (170,308)

Special AssessmentsSpecial assessment - parking lot

Total Special Assessments

Sales of Property and Compensation for Loss

253,986 253,986 239 733 (14,253)

(14,253)253 986 253,986 239 733

13,00020,000

150,00035,000

13,00020,000

150,00035,000

14,09s10,568

262,00550,971

1,095(s,432)

112,00515,971

Total Sales of Propertyand Compensation for Loss 218,000 218,000 337 639 1 19,639

Miscellaneous Local SourcesRefund of prior year expensesGifts and donationslnterfund revenuesUnclassified revenues

State and LocalAidPer capitaMortgage taxEmergency disaster assistanceYouth programsConsolidated local street

and highway improvement aidSpecial state grantOther

20,00010,200

6,50020,00010,200

52,98910,25020,000

52,9893,750

7 090 (3,110)

Total Miscellaneous Local Sources 30,200 36 700 90,329 53,629

214,0375s0,000

4,8754,374

312,345

58,035

214,037550,000

9,249

312,345

64,387

207,449539,182104,216

7,145

319,08810,00042,054

(6,588)(10,818)104,216

(2,104)

6,74310,000

(22,333\

Total State and Local Aid 1,143,666 79 116

-75-

150 018 1,229,134

(Continued)


SCHEDULE OF REVENUES, EXPENDITURES, ANDCHANGES IN FUND BALANCE - BUDGET AND ACTUAL


OriginalBudget

FinalBudqet

VariancePositive

(Neqative)

REVENUES (continued)

FederalAidEmergency Disaster Assistance

Total FederalAid

Total Revenue

Actual

312,649 312,649

-0- 0 312,649 312,649

$ 51,420.044 $ Sr,433,624 $ Sr,627,407 $ 193,783

(Continued)

-76 -




Year Ended MaY 31,2012

Original FinalBudqet Actual

VariancePositive

(Neqative)

(continued)EXPENDITURES

General Govern ment SupportBoard ofTrustees:

Other expendituresVillage Justice:

Personal servicesEquipmentOther expenditures

Clerk-Treasurer:Personal servicesEquipmentOther expenditures

Purchasing:Personal servicesOther expenditures

Assessment:Personal servicesOther expenditures

Tax Advertising and Expense:

Other expendituresDiscount on TaxesLaw:

Other expendituresPersonnel:

Personal servicesOther expenditures

Engineer:Personal servicesOther expenditures

Elections:Personal servicesOther expenditures

Buildings:Personal servicesOther expenditures

St. PaulSchool:Other expenditures

Central Garage:Personal servicesEquipmentOther expenditures

Central Printing and Mailing:

Other expendituresCentral Data Processing:

Personal servicesOther expenditures

Municipal Association Dues

Refunds of Real Property Taxes

$ s,402 $ 10,102 $ 8,473 $ 1,629

288,3464,559

38,150

768,72770,288

381,354

279,7607,850

47,9245,000

2,00021,000

670,000

108,39615,000

194,49318,805

210,602194,004

26,955

284,9669,000

200,585

26,000

102,552217,241

22,5002,828,506

288,34610,91 1

38,150

848,72770,288

379,654

279,7607,850

44,4248,500

2,00022,380

670,000

108,39615,000

196,09321,305

8951,480

202,202191 ,504

26,955

322,7668,280

227,305

26,000

102,552217,241

22,5002,685,919

253,22410,911

30,382

841,128

261,490

279,2153,762

37,6876,642

1,09022,380

583,681

107,7677,297

196,03416,400

8951,433

200,505164,032

6,971

322,7528,270

214,835

25,993

102,041189,31920,933

1,744s62

35,122

7,768

7,59970,288

118,164

5454,088

6,7371,858

910

86,319

6297,703

4,905

47

1,69727,472

19,984

14

10

12,470

7

511

27,9221,567

941,257

(Continued)

59

725650

-77 -

INCORPORATED VILLAGE OF GARDEN CITYSCHEDULE OF REVENUES, EXPENDITURES, AND



VariancePositiveOriginal

BudqetFinal

Budget Actual (Negative

EXPENDITURES (continued)

General Government Support (continued)

lnsurance chargesMTA payrolltaxContingency

2,69511 731 11 731

11,561,780 10,105,6s6 8,703,949 1,401 .707

2,957,09679,344

1,470,000

2,957,09679,344

2,957,09676,649

Public SafetyPolice Department:


Fire Depaftment:Personal servicesEquipmentOther expenditures

Safety lnspection:Personal servicesOther expenditures

TransportationStreet Administration:


Street Maintenance:Personal servicesEquipmentOther expenditures

Snow Removal:Personal seruicesEquipmentOther expenditures

Street Lighting:Personal servicesEquipmentOther expenditures

Economic Assistance and OpportunityPublicity:

Other expenditures

Total General

Government Support

Total EconomicAssistance and Opportunity

7,559,08515,007

601,469

3,197,61835,224

1,093,393

8,939,03531,007

579,105

3,257,20546,831

1,117,786

8,887,37330,931

442,905

3,245,80511,307

1,012,629

51,66276

136,200

11,40035,524

105,157

532,494100 117

Total Public Safety 1 3, 1 31 ,381 1 4,61 4 ,554 1 4,263,561

541J2688,459

541,126102,459

8,6322,342

3s0,993

290,1711 ,319

54,996

731,5185,000

307,360

254,5231,250

1 49,1 00

134,3005,500

290,1711 ,319

54,996

706,2685,000

307,360

171j901,250

134,700

123,3005,500

287,892

52,770

704,8872,074

306,723

17 I ,113

61,420

2,2791 ,3192,226

1,381

2,926637

771,250

73,280

713.08 691 745

122,s122,837

657,396

7882,663

34,3491

Total Transportation 2,648,118 2,492,799 2,369,624 123,175

16,000 16,000 7 784 8,216

16,000 8,216

-78-

16,000 7 784(Continued)



CHANGES IN FUND BALANCE - BUDGET AND ACTUAL


OriginalBudget

1,305,57111,900

287,493

1,964,12914,485

737,255

FinalBudqet Actual

VariancePositive

(Negative)


Gulture and RecreationParks:


Playgrounds andRecreation Centers:


Concerts:Other expenditures

Historian:Other expenditures

Library:Contribution to component unit

Home and Community ServicesSanitary Sewers:

Personal seruicesEquipmentOther expenditures

Storm Sewers:Personal servicesOther expenditures

Refuse and Garbage:Personal servicesOther expenditures

Street Cleaning:Personal servicesOther expenditures

Other Sanitation:Personal servicesOther expenditures

Shade Trees:Personal servicesOther expenditures

1 ,316,95411,900

301,242

1,976,12914,485

737,255

1 ,316,43610,287

296,747

5181,6134,495

1,950,08912,577

746,764

3,000

1,000

3,050,000

3,000 2,471

1,000

3,050,000 3,050,000

Total Culture and Recreation 7,374,833 7 ,411,965 7,385,371

26,0401,908

(e,50e)

529

1,000

0

26,594

169,65625,000

152,355

165,77648,095

1,821,0571,650,439

473,345199,500

236,86967,674

232,254151.267

162,00625,000

1s2,355

196,77648,095

1,942,4811,593,575

502,653205,042

244,87971,814

158,389

114,544

190,56645,488

1,942,3341,578,936

498,315202,595

244,85468,516

3,61725,00037,811

6,2102,607

147

14,639

4,3382,447

253,298

2,6103,906

283,654203,842

281,044199,936

Total Home andCommunity Services 5,393,287 106,655

-79 -

5,632,172 5,525,517(Continued)



CHANGES IN FUND BALANCE - BUDGET AND ACTUAL


VariancePositiveOriginal

BudqetFinal

Budqet Actual (Negative


Employee BenefitsState retirementPolice and fire retirementSocial securityUnemployment insuranceHospital and medical insurance

Debt ServicePrincipallnterest

Excess (Deficiency) of RevenuesOver (Under) Expenditures

Other Financing Sources (Uses)Premium on bondsTransfers inTransfers out (1,060,743) (1,149,243\

1,644,0422,054,2241,503,417

40,0005 668

1,702,6572,267,9581,607,606

40,0005,396,668

1,702,6572,197,2871,528,352

22,O81

5,325J24

-0-70,71179,25417,91971,544

Total Employee Benefits 10 351 11,014,929 10,775,501

1,525,500

239,428

1,525,627496,932

1,525,702283,0'18

(75)213,914497 059

Total Debt Service 2,022,559 2,022,559 1,808,720

Total Expenditures 52,786,309 53,310,634 50,840,027 2,470,607

( 1 ,366,26s) (1 ,877,01 0) 787,380 2,664,390

213 839

60,6871,271

(1,149,243)

60,6871,271

-0-

Total Other Financing Uses (1,060,743)

Net Change in Fund Balance $ (2,427,008\

Fund Balance at Beginning of Year

Fund Balance at End of Year

(1,149,243) (1,087,285) 61 958

$ (3,026,253) (299,905)

9,375,783

$ 2,726,348

$g

-80-

INCORPORATED VILLAGE OF GARDEN CITYSCHEDULE OF FUNDING PROGRESS

FOR OTHER POSTEMPLOYMENT BENEFITS (OPEB)May 31 ,2012

ActuarialValuation Date ActuarialValue

of Assets

ActuarialAccruedLiability

UnfundedLiabilitv

CoveredPayroll

UnfundedLiability as a

Percentage ofCovered

June 1 Funded Ratio

2010

2008

$

$

-0- $ 92,989,078

-0- $ 80,844,585

$ 92,989,078

$ 80,844,585

0.00%

0.00%

$ 24,991,040

$ 25,511,693

372.09o/o

316.89%

-81 -


-82-

OTHER SUPPLEMENTARY INFORMATION

-83-


STATEMENT OF CHANGES IN AGENCY ASSETS AND LIABILITIES

FIDUCIARY FUNDYear Ended MaY 31 ,2012

June 1 2011 Additions Deductions May 31,2012

ASSETSCashDue from others

$ 2,968í07-0-

$ 34,339,307471.644

$ 34,514,741368,759

2,792,673102,885

$

Total Assets $ 2,968,107 $ 34,810,951 $ e¿,883,500 $ 2,895,558

LIABILITIESBuilding fees and other depositsJustice court fundOther agency liabilities

Total Liabilities

$ 2,385,440123,302

$ 1,015,3221,269,079

32,526,550

1,197,8071,251,241

2,202,955141,140551,463

$ $

459 .365

$ 2,e68,107 $ 34,8 10,951 $ 34,883,500 $ 2,895,558

-84-

STATISTICAL SECTION

This comprehensive statistical data for the lncorporated Village of Garden City (the "Village")

includes, in some cases, statistical information for the town and school districts, which are not part ofthe Village's reporting entity. lt is intended to provide readers of this report with a broader and more

complete understanding of the Village and its financial affairs than is possible from the financialstatements and schedules included in the Financial Section. Many tables in this section coverseveral years for comparison purposes, and many present data from outside of the Village'saccounting records. This part of the Village'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 overallfinancial health.

Page

Financial Trends

These schedules contain information to help the reader understand how thegovernment's financial performance and well-being have change over time.

Revenue Gapacity

These schedules contain information to help the reader assess thegovernment's most significant local revenue source, the property tax.

Debt Capacity

These schedules present information to help the reader assess the affordabilityof the government's current levels of outstanding debt and the government'sability tó issue additionál debt in the future.

Demographic and Economic lnformation

These schedules offer demographic and economic indicators to help the readerunderstand the environment within which the government's financial activitiestake place.

Operating lnformation

These schedules contain service and capital asset data to help the readerunderstand how the information in the government's financial report relates tothe services the government provides and the activities it performs'

86-95

96-1 01

102-105

1 06-1 07

108-113

-85-


NET ASSETS BY COMPONENTLAST NINE FISCAL YEARS

(accrual basis of accounting)

Years Ended May 31, 2012 2011 2010 2009

Governmental activitiesNet assets

lnvested in capital assets,net of related debt

Unrestricted

Business{ype activitiesNet assets


Unrestricted

Primary governmentNet assets


Unrestricted

$ +1,851,325(23,260,253)

$ 45,259,008 $ 45,276,890 $(9,583,152)(18, 861,480)

46,215,824(3,759,618)

Total governmental activities net assets $ 18,591 ,072 $ 26,397 .528 $ 35,693,738 $ 42,456,206

$ $ 9,012,566 $2,772,285

$ 9,026,069191.547

8,514,0142,184,762

12,677,218(e25,813)

Total business-type activities net assets $ 9,217,616 $ tO,698.776 $ rr,784,851 $ 1t,751,405

$ 50,877,394 $ 53,773,022 $ 54,289,456(6,810,867)

$ 58,893,042(4,685,431)(23,068,706) (16,676,718)

Total primary government net assets $ 27,808,688 $ 37,096,304 $ q,+78.589 $ 54,207,611

Source: Office of the Village Auditor and the audited fìnancial statements of the lncorporated Village of Garden City

Note: Data not available prior to fiscal 2004 implementation of Governmental Accounting

Standards Board Statement No. 34, Basic Financial Statements andManagemenf's Discussion and Analysrs for Sfate and Local Governments.

-86-

2008 2007 2006 2005 2004

$ 44,914,9666,818,812

$ 44,215,174 $11,791,831

44,278,93510,444,052

$ 39,966,579 $ 41,738,52714,251,02413,318.975

$ 51,733.778 $ 56,007,005 $ 54,722,987 $se $ 55,989,551

I 10,473,725 $2,565,864

12,769,879638,961

$ 12,759,053 $ 11,876,497 $1,477,752

11,078,1452,402,109804 .059

$ 13,039,589 $ 13,408,840 $ 13,563,112 $ ts 249 $ 13,480,254

$ 55,388,6919,384,676

$ 56,985,053 $12 430 792

57,037,98811,248,111

$ st,843,076 $ 52,816,67216,653,13314,796,727

$ 64,773,367 $ Og,¿15.845 $ 68,286,099 $ 66,639,803 $ 69,469 ,805

-87-

INCORPORATED VILLAGE OF GARDEN CITYCHANGES IN NET ASSETSLAST NINE FISCAL YEARS(accrual basis of accounting)

Years Ended Mav 31, 2012 2011 2010 2009

ExpensesGovernmental activities:

General government supportPublic safetyTransportationEconomic assistance and opportunityCulture and recreationHome and community serviceslnterest on debt

Total governmental activities expenses

Business-type activities:PoolTennisWater

Total business-type activities expensesTotal primary government expenses

Program RevenuesGovernmental activities:

Charges for services:General government supportPublic safetyTransportationCulture and recreationHome and community services

Operating grants and contributionsCapital grants and contributions

Total governmentalactivities program revenues

Business-Çpe activities:Charges for services:

PoolTennisWater

Total business-typeactivities program revenues

Total primarygovernment program revenues

$ 11,572,52223,283,5354,690,515

7,78411,247,5538,391,920

298,88159,492,710

1,139,389451,771

6,196,727

$ 13,691 ,507 $22,205,619

4,939,63830,676

10,941,9248,555,314

318,151

13,889,43520,603,7244,409,301

21,70310,947,0138,653,097

310,2ô5

12,003,81922,266,724

4,298,66765,1'11

7,435,85012,259,179

383.061

$

60,682,829 58,834,538 58,712,411

1,164,447458,895

6,292,376

1,124,830415,233

5,373,0956,913,158

1,200,801437,469

5,669,124

7 787 7.915.718 7

$ 68,598,547 $ 65,747,696

$ 26,140 $1,858,976

404,797550,364246,189424,011s68 821

$ 28,8301,727,098

542,060431,066113,345

12,240566,1 00

24,7101,826,918

450,732526,144265,089

8,700818,660

28,5351,817,490

428,554456,385320,694

19.361

$

655 154

4,079,298 3,920,953 3.726.173 3,420,739

1,111,211392,371

4,737,434

1 ,092,315352,000

5,320,417

1,060,504387,764

4,148,020

1,036,969401,736

4,509,246

6,241,016 6,764,732 5,596,288 5,947,951

$ 10,320,314 $ 10,685,68s $ 9,322,461 $ 9.368.690

Source: Offìce of the Village Auditor and the audited financial statements of the Incorporated Village of Garden City

Notes: Data not available prior to fiscal 2004 implementation of Governmental AccountingStandards Board Statement No. 34, Basic Financial Statements andManagement's Drscussþn and Analysis for State and Local Governments.

Beginning with the year ended May 31 , 2010, the Village reports the Library contribution as a culture and recreation expense. Previously,

this expense was reported as a home and community services expense.

-88-

2008 2007 2006 2005 2004

$ 12,840,280 $18,621,5923,815,348

60,5626,720,021

1 1 ,991 ,1 64346,799

12,O25,22517,769,6553,720,959

44,171

5,672,581't1,208,340

309,874

9,496,35319,1 19,01 63,639,415

26,4015,550,758

11,590,991216.235

12,575,60817,009,0173,508,639

44,2535,060,933

10,239,771246,548

9,490,85414,909,2113,255,1 18

43,1 534,527,8597,269J44

278,650

$ $ $

54,395,766 50,750,805 49,639,1 69 48,684,769 39,773,989

1,296,2774't8,049

4,524,140

1,157 ,748398,349

4.120.319

't,189,250

370,2333.562.716

1j36,454387,575

3,373,326

1,230,164407,487

3,974,773

$

6,238,466 5,676,416 5,612,424 . 5,122,199 . 4,897,355-g 60,6u,232 -$ 56/27,221 $ 55,251,5e3 _$________q9i96,eq9- _9__-44,6?\A!!-

$$ 26,5601,786,021

393,814355,182

84,12566,575

682,001

32,5602,253,254

407,001399,018150,571

87,621267,416

26,150 $1,612,545

330,744353,291147,213637,010

21,315 $1,675,604

414,378321,320141,786235,821

14,985I ,545,919

486,976264,412

8,941329,119

35 144

3.394.282 3,597,441 3.106.953 2,810,224 2.685,496

1,007,340412,778

4,371,697

994,636399,998

4,053,708

957,163429,259

4,392,928

951,159375,1 93

3,632,176

928,499367,967

3,426,049

5,791,815 5 444342 5,779,350 4,958,528 4.722,515

$ 9,186,097 $ 9,045,783 $ 8.886.303 $ 7,768,752 $ 7.408.011

(Continued)

-89-


CHANGES tN NET ASSETS (CONTINUED)LAST NINE FISCAL YEARS(accrual basis of accounting)

(Continued)

Years Ended Mav 31.

Net (Expense)/RevenueGovernmental activitiesBusiness-type activitiesTotal primary government net expense

2012

$ (55,413,412)(1,546,871)

_$______(56,999¿99I

2011 2010 2009

General Revenues and Other Changes in Net AssetsGovernmental activities

Real propertytaxes $ 44,593,160 $

Other real property tax items 718,361

Non-property tax items 995,737Earnings on investments 127,090

Grants and contributions notrestricted to specific programs 752,983

Other 419,625TransfersTotal governmental activities 47,606,956

Business-type activities:Earnings on investmentsLegal settlementOther

Total business-type activitiesTotal primary government

43,432

Change in Net AssetsGovernmental activitiesBusiness-type activitiesTotal primary government

65,711 64,911 1,350,316

_9________47,672,667_ _$._______9,530, _ _$__19É99ør

$ (56,761,876)(1,150,986)

$ (57,912,862)

$ (55,108,365) $ (55,291,672)(1,359,443)

_$___156,65X_1jÐ

42,579,108553,785

1 ,066,1 87500,597

1,008,858305,565

44,328,042 $653,051

1,088,762148,289

807,361440,161

44,312,262 $603,744959,073202,686

883,3501,384,782

47,465,666 48,345,897 46,014,100

2752235,51929,392

29,9511,320,365

71,259

71,259$ 46,085,359

$ (7,806,456) $ (9,2e6,210) $ (6,762,468) $ (9,277,572)(1,481,160) (1,086,075) 33,446 (1,288,184)

$ (e,287,616) _$_(10,382¿9q _9_____re12s,022\__$_______í_qq65J99)

-90-

2008 2007 2006 2005 2004

$ (51,001,484)(446,651)

$ (51 ,448,I 35)

$ 41,579,104540,415992,944

1,475,783

1,634,786505,225

41,550,829 $544,352951,345

1,717,785

2,107,1751,565,856

40,694,602 $387,730865,867

1 ,I 56,939

2,183,4062,681,105

38,912,605 $420,383767,324631,591

2,213,421225,224

38,107,563441,922723,472602,266

1,942,591207,373

(3,069,199)

38,955,988

$ (47,153,364) $ (46,532,216) $ (45,874,545) $ (37,088,4e3)17

$

46.728,257 48.437.382 47,969,649 43,'t70,548

77,400 73,802 41,937 37,666 48,250

12,107

77,400 73,802 41,937

-$--46,99!,692- -$-------48,9!J-91- -$-----48'9!é99-37

1,437,433 $ (2,703,997)

60,357$ 39,016,345

$ 1,867,495('t14,483\

$ 1 ,753,012

$ (4,273,227)(369,251)

$ (4,642,478)

1,284,018 $$(154,272\ 208,863 (126,005)

_9_____1,1 2e :7 46_ _$____L,946 299_ _$_____ø999I9?I

-91 -

INCORPORATED VILLAGE OF GARDEN CITYFUND BALANCES OF GOVERNMENTAL FUNDSLAST TEN FISCAL YEARS(modified accrual basis of accounting)

Years Ended May 31 , 2012 2011 2010 2009 2008

Note'1

General Fund

Reserved"Unreserved

NonspendableAssignedUnassigned

Capital Projects FundReserved"Unreserved

RestrictedAssigned

TotalCapital

Projects Fund

$ 806,5956,658,2991,610,984

$ 5,087,9464,287,837

$ 5,474,1573,749,967

$ 5,563,7943,221,296

$ 6,521,6085,779,734

TotalGeneral Fund $ 9,075,878 $ 9,375,783 $ 9,224,124 $ I,785,090 $ 12,301,342

$ 1,769,305(2,359,230)

$ 579,6791,413,870

$ 2,523,238(467,315)

$ 1,177,7873,590,261

$ 16,7511,075,498

$ 1,092 .249 $ (58e,925) $ 1,993,549 $ 2,055,923 $ ¿,768,048

Source: Office of the Village Auditor and the audited financial statements of the lncorporated Village

of Garden City.

Note 1: Components of fund balance reclassified in accordance with Governmental Standards

Board (GASB)Statement No. 54, Fund Balance Reporting and Governmental

Fund Type Definitions

" lncludes encumbrances, inventory, civil practice law rules and employee benefit reserves.

-92-

2007 2006 2005 2004 2003

$ 8,042,4758,382,651

$ 7,386,3276,383,592

$ 3,972,1066,244,484

$ 5,891,948 $

3,207,0161,205,4206,014,747

$ 16,425,126 $ 13,769,919 $ 10,21 6.590 $ 9,098,964 $ 7,220,167

$ 4,013,729166,539

$ 1,580,339(45,6e3)

$ 2,870,375803,702

$ 1,212,6581,998,162

$ 1,672,4702,607,964

$ 4,180,268 $ 1,534,646 $ 3,674,077 $ Z,Zt 0,820 $ 4,280,434

-93-

INGORPORATED VILLAGE OF GARDEN CITY

CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS

LAST TEN FISCAL YEARS(modified accrual basis in accounting)

Years Ended Mav 31. 2 2 2011 201 0 2009 2008

RevenuesReal property taxes and tax itemsOther real property tax itemsNon-property tax itemsDepartmental incomelntergovernmental chargesUse of money and propertyLicense and permitsFines and forfeituresSpecial assessmentsSale of property and

compensation for lossMiscellaneous local sourcesState and local aidFederal aid

Total Revenues 51,627,407 51 324 103 50,855,324 49 332 310

$ 44,566,731718,361995,736

1,640,42117,685

219,986127,083

1,131,920239,733

$ 44.319,271653,05',I

1,088,7621,720j36

21,335232,498103,790

1,051,891253,987

$ 44,286,198603,743959,073

1,759,50338,810

265,82194,686

972,224253,987

$ 42,551,527553,785

1,066,1871,548,708

58,827518,630

98,351992,526253,987

$ 41,310,904540,416992,944

1,381,73770,542

1,314,458112,218964,270253,986

208,67451,063

2,129,376

337,63990,329

1,229,134312,649

359,21977,717

1,240j08202,338

209,88249,354

1,362,043

241,001115,569

1,333,212

ExpendituresCurrent:

General government supportPublic safetyTransportationEconomic assistance and

opportunityCulture and recreationHome and community servicesEmployee benefits

Capital outlayDebt Service:

Principallnterest

Total Expenditures

Excess (Deficiency) of Revenuesover Expenditures

Other Financing Sources (Uses)Capital loanTransfers inTransfers outProceeds of refunding bondsPayments to refund bond escrow agenlTransfer to component unitPremium on obligationsDebt proceeds

Total Other Financing Sources (Uses)

Net Change in Fund Balances

Debt Service as a Percentageof Noncapital Expenditures

8,703,94914,263,5612,369,624

7,7847,385,3715,525,517

10,775,5013,340,798

9,553,930'13,379,418

2,793,972

30,6767,342,9455,604,5419,685,4293,732,113

1,309,271323,623

10,534,07913,001 ,5662,439,092

21,7037,901,1845,819,0088,011,4343,650,8'13

1,343,107312,178

53,034,'164

10,653,70213,887,8092,424,676

65,1'11

7,809,0306,122,7878,489,9823,994,271

10,720,01513,146,8352,147,288

60,5624,546,5289,659,0508,285,4046,076,086

1,525,702283,018

1 ,691,431 1,340,298421 888 309 116

54,180,825 53,755,918 55,560,687 56,291.182

(2,553,41S) (2,431 ,815) (2,178,840) (6,228,377) (6,e60,5e4)

1 ,150,514(1,150,514)

60,687

1,438,221(1,438,221)

1,755,472(1,755,472)

4,806,074(4,806,074)

3,802,196(3,802,196)

'19,590

3,405,0003,875,000 2,555,5003,935,687 0 2 0 3,424,590

$ 1,382,269 $ (2,431 ,815) $ 376,660 $ (6,228,377) $ (3,536,004)

3.56% 4.12o/o

Source: Office of the Village Auditor and the audited financial statements of the lncorporated Village of Garden City.

Note: Debt service as a percentage of noncapital expenditures was presented by reducing total expenditures by capital outlay per

the "Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the

Statement of Activities" for the last nine years as data is not available prior to fiscal 2004 implementation of Governmental

Accounting Standards Board Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State

and Local Governments.

3.27% 3.36% 331%

-94-

2007 2006 2005 2004 2003

$ 41,768,796544,392951,345

1,892,34766,758

1,567,175't02,169

'1,000,258

$ 40,671,111387,730865,867

1,261,53655,514

1,088,29793,651

954,371

362,9212,361,1882,820,416

$ 38,893,343420,383767,324

1,371,77072,363

639,02297,991

948,885

$ 37,932,349441,922720,572

1,323,92757,716

485,68975,744

959,599

$ 35,347,179423,564698,873922,60046,005

455,60973,823

1,049,939

274,85630,612

2,462,212

173,64944,579

2,449,242

184,17378,589

2,187,40884,300

256,7531,833,0981,507,778

50,660,920 50, 922.602 45,878,551 44,531,988 42,615,221

6,318,78312,661,7822,291,229

64,9724126,3018,798,4707,810,5576,087,016

6,663,41812,520,0402,096,025

26,4014,005,6598,895,7167,732,6496,906,441

1,030,000221.444

6,076,05011,733,7942,266,279

20,8963,678,2408,368,9287,331,3903,545,522

7,680,78611,184,2381,936,882

28,2623,462,7345,182,4285,480,7144,344,863

1,070,000

8,395,82010,825,565

1,938,744

25,2753,204,2424,854,7724,906,1073,938,217

1,055,627308,416

1,025,000251,569

44,297,668282 706

1,095,662316,651

49,523,153 50,097,793 13 39,50'l ,055

1,137,767

958,6554,828,305

(4,828,305)

4,407

589,0894,502,773

(4,5O2,773)4,022,027

(4,022,027)3,240,105

(3,240jO5)

(3,06e,199)

3,429,666(3,429,666)6,705,662

(6,705,662)(2,782,042)

824,809 1,580,883 3,878,375 3.114j66

3,200 ,0004,163,062 589,089 (3,069,199) (2,782,042)0

$ 5,300,82e $ 1,4 13,898 $ 1,580,883 809,176$ $ 332,124

3.670/o3.23o/o 2.91% 3.21%

-95-

3.97%


ASSESSED VALUE, STATE EQUALIZATION RATE, AND ESTIMATED FULL VALUE OF REAL PROPERTYLAST TEN FISCAL YEARS

YearsEnded

May 3'1,

Single FamilyDwellings Condominiums Apartments

GolfCourses Hotel Utilities

SpecialFranchise

2012

2011

2010

2009

2008

2007

2006

200s

2004

2003

$ 84,260,005 $

84,35'1,91 3

84,752,561

85,495,752

85,584,548

85,635,018

85,249,948

84,524,461

84,340,074

84,050,417

2,332,225 $

2,341,705

2,360,947

2,133,085

2,843,766

2,877,357

2,660,097

2,660,358

2,654,725

2,658,324

1,839,553

1,837,477

1,837,477

2,010,925

2,071,347

2,070,459

2,280,225

2,444,383

2,468,750

2,573,180

$ 525,000 $

525,000

525,000

732,900

985,1 00

1,239,940

1,202,340

1,202,340

1,202,340

1,202,340

717,250 $

717,250

717,250

1,404,000

1,404,000

'1,404,000

1,404,000

1,404,000

1,404,000

1,404,000

1,387,700

1,387,700

1,387,700

1,387,700

1,387,700

1,387,700

1,569,350

'1,569,350

1,569,350

1,950,500

$ 1,133,447

1,133,283

1,106,725

1,118,529

1 ,I 06,503

1,077,666

1,159,779

1,203,390

1,369,826

1,522,451

(Note: Value of property as of January I st each year. Assessment to be used for subsequent fiscal year tax levy.)

(a) This column includes tax-exempt property.

Source: lncorporated Village of Garden City Assessment Roll

-96-

Commercial

TotalAssessedValuationTaxable Exemptions

Total GrossAssessedValuation

StateEqualization

Rate

EstimatedActual Taxable

Value

TotalDirect Tax

Rate

$ 12,937,323

13,499,452

14,359,O27

15,089,'155

15,895,435

15,993,124

17,341,515

'18,365,755

20,219,602

20,280,602

$ 10s,132,503

105,793,780

107,046,687

109,372,046

111,278,399

111,685,264

112,867,254

113,374,037

115,228,667

115,641,814

$ 47,921,748

47,921,748

47,921,748

47,921,748

47,921,748

47,921,748

49,554,813

49,690,311

49,617,61'l

49,615,852

$ 153,054,251

153,71 5,528

154,968,435

157,293,794

159,200,147

159,607,012

162,422,067

163,064,348

164,846,278

165,257,666

1.66% $

1.660/o

1.51o/o

1.51o/o

1.52%

1.600/o

1.80o/o

1.960/o

2.14o/o

2.690/o

(a)

9,220,135,602

9,259,971,566

10,262,810,265

10,416,807,550

10,473,693,882

9,975,438,250

9.023,448,167

8,319,609,592

7,703,097,103

6,143,407,658

(a)

29.11

28.83

28.58

27.05

25.94

26.15

25.03

23.91

23.00

21.38

-97 -

INCORPORATED VILLAGE OF GARDEN CITYDIRECT AND OVERLAPPING PROPERTY TAX RATESLAST TEN FISCAL YEARS

Village Direct Rates

YearsEnded

May 31,Full

Valuation

StateEqualization

Rate

TotalAssessed

ValueTax Levy

Village

TotalVillage Direct

Tax Rate

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

Source:

1.66%

1.66%

1.51%

1.51%

1.52%

1.60Yo

1.80%

1.96%

2.14%

2.69%

$ 9,220,135,602

9,259,971,566

10,262,810,265

1 0,416,807,550

10,473,693,882

9,975,438,250

9,023,448,167

8,319,609,592

7,703,097,103

6,143,407,658

$ 153,054,251

153,715,528

154,968,435

157,293,794

159,200,147

159,607,012

162,422,067

163,064,348

164,846,278

165,257,666

$ 44,560,340

44,317,329

44,295,682

42,552,860

41,301,210

41,740,531

40,6s5,930

38,993,380

37,907,386

35,330,034

29.11

28.83

28.58

27.05

25.94

26.15

25.03

23.91

23.00

21.38

County of Nassau and lncorporated Village of Garden City Assessment Roll.

-98-

Overlappi nq Rates

Tax LevySchool

TotalSchool Direct

Tax RateTax Levy

Town

TotalTown Direct

Tax RateTax LevyCounty

TotalCounty Direct

Tax Rate

Total Direct &Overlapping

Rate

$ 90,654,014

88,375,513

85,022,296

83,705,109

79,811,700

76,673,601

73,047,315

69,198,930

65,306,161

61,713,710

s9.23

57.49

s4.86

53.22

50.13

48.04

44.97

42.44

39.62

37.34

$ 1,747,700

1,684,757

1 ,131,599

1,088,208

1,097,096

1,106,731

1,099,484

1,059,307

1,002J61

1,009,480

1.14

1.10

0.73

0.69

0.69

0.69

0.68

0.65

0.61

0.61

$ 23,338,1 1 9

20,212,275

18,943,139

18,065,080

18,136,211

17,383,673

18,113,121

18,295,728

16,311 ,488

15,069,882

15.25

13.15

12.22

11.48

11.39

10.89

11.15

11.22

9.89

9.12

104.73

100.57

96.39

92.44

88.1 5

85.77

81.83

78.22

73.12

68.45

-99-

INCORPORATED VILLAGE OF GARDEN CITYPRI NCI PAL PROPERTY TAXPAYERS

CURRENT AND NINE YEARS AGO

2012Assessed

Value

$ 3,215,0892,117,963

717,250577,850525,000426,859400,000342,600328,500320,000

$ 8,971,111 (a)

Percent ofAssessed ValueName Type

The Treeline Companies Office Building(s)Keyspan Public UtilityCento Properties Co. HotelHamilton Garden Owners Cooperative ApartmentsSears Roebuck & Co. Department StoreStewart & Clinton, LLC Office Building(s)EB Franklin Avenue Realty, LLC Office Building(s)Cherry Valley Apartments Cooperative Apartments520 Franklin AvenueAssociates, LLC Office Building(s)1001 Realty, LLC Office Building(s)

Total Assessments and Percent of Total Assessment Roll

(a) Represents 8.53% of the total taxable assessed valuation of the Village for 2012

2003

3.06%2.01%0.687o0.55%0.50%o.410/o

0.38%0.33o/o

031%0.30%

8.s3%

NameAssessed

Value

$ 3,439,3491,956,0001,428,0001,404,0001,142,5001 ,097,1001,096,7001,003,040

729,600457 747

$ 13,754,036 (b)

Percent ofAssessed Value

Keyspan Public UtilityFranklin Avenue Plaza, LLC Office Building(s)Treeline Garden City Plaza Associates Office Building(s)Cento Properties Co. HotelSears Roebuck & Co. Department StoreDDGC Pproperties Office Building(s)Stewart & Clinton, LLC Office Building(s)Garden City Company Office Building(s)Reckson Associates Office Building(s)New York Telephone Co. Public Utility

Total Assessments and Percent of Total Assessment Roll

(b) Represents 1 1 .89% of the total taxable assessed valuation of the Village for 2003.

Source: lncorporated Village of Garden City Assessment Roll

2.970/0

1.690/o

1.23o/o

1.21o/o

0.99%0.95%0.95%0.87%0.63%0.40o/o

11.89o/o

- 100 -

INGORPORATED VILLAGE OF GARDEN CITYPROPERTY TAX LEVIES AND COLLECTIONS

LAST TEN FISCAL YEARS

YearsEnded

May 31,

Tax Levyper

Tax RollOther ltemson Tax Roll

TotalTax Levy

Tax LevyCollected

Percentof Levy

Collected(a)

2012 $ 44,560,340 $ 492,799 $ 45,053,139 $ 45,027,762 99.94%

2011 44,317,329 390,132 44,707,461 44,683,034 99.95%

2010 44,295,682 405,488 44,701,170 44,676,262 99.940/0

2009 42,552,860 382,636 42,935,496 42,910,815 99.94%

2008 41,301 ,210 384,907 41,686,117 41 ,660,912 99.94%

2007 41,740,531 72,389 41,812,920 41,790,695 99.95%

2006 40,655,930 98,733 40,754,663 40,733,382 99.95%

2005 38,993,380 106,212 39,099,592 39,079,610 99.95%

2004 37,907,386 124,844 38,032,230 38,010,137 99.94%

2003 35,330,034 87,514 35,417,548 35,393,259 99.93%

Source: lncorporated Village of Garden City Assessment Roll.

(a) Collected during the year of levy.

Note: Tax collections received subsequent to year end are not significant and therefore were notincluded in the above schedule. The Village has a tax sale on an annual basis.

-101-

Governmental Activities

INCORPORATED VILLAGE OF GARDEN CITYRATIOS OUTSTANDING DEBT BY TYPE

LASTTEN FISCALYEARS

Business-typeActivities

Years EndedMay 31,

GeneralObligation

Bonds

SpecialAssessment

BondsCapital Loan

Payable

GeneralObligation

BondsTotalPrimaryGovernment

Percentage ofPersonallncome Per Capita

$ 9,560,0006,795,s007,690,5006,095,0007,415,0005,070,0005,135,0006,165,0007,190,0008,260,000

$ 1 ,130,0001,370,0001 ,610,0001,825,0002,040,0002,250,000

-0--0--0--0-

(b)$ 762,809

938,0111,112,2821,280,3891 ,436,8191,501,339

589,089-0--0--0-

$ 10,750,0009,695,000

10,295,0006,685,0007,495,0003,620,0002,440,0002,845,0003,395,0003,935,000

$22,202,80918,798,51 1

20,707,78215,885,38918,386,81912,441,3398,164,0899,010,000

10,58s,00012,195,000

(a)2.05% $1.79%2.O2o/o

1.60%1.85o/o

131%0.89%

1.02%1.24%1.480

(a)

2012201120102009200820072006200520042003

458399438346400283192

220269320

Source: Office of the Village Auditor, Official Statements and the audited financial statements of the lncorporated Village ofGarden City.

Note: Details regarding the outstanding debt can be found in the lncorporated Village of Garden City notes to the flnancialstatements.

(a) See the schedule of Demographic and Economic Statistics for personal income and population

(b) The Village received a capital loan from the New York Power authority to finance various projects.

-102-

INCORPORATED VILLAGE OF GARDEN CITYRATIOS OF GENERAL BONDED DEBT OUTSTANDING


YearsEnded

Mav 31, Population

TaxableAssessedValuation

GeneralObligation

Bonds

Percentageof General

Obligation Bondsto Assessed

Value

Net BondedDebt Per

Capita

2012201120102009200820072006200520042003

22,37122,37121,67221,67221,67221,67221,67221,67221,67221,672

(a)

$ 153,054,251153,715,528154,968,435157,293,794159,200,147159,607,012162,422,067163,064,348164,846,278165,257,666

$ 20,310,00016,490,50017,985,50012,780,00014,910,0008,690,0007,575,0009,010,000

10,585,00012,195,000

13.27% $10.73%11.61%8.12%9.37o/o

5.44%4.66%5.53o/o

6.42o/o

7.38o/o

908737830590688401

350416488563

Source: Office of the Village Auditor and the Official Statements of the lncorporated Village of Garden City

(a) lncludes tax-exempt values for the prior calendar year.

-103-

INCORPORATED VILLAGE OF GARDEN CITYDIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT

As of May 31,2012

GovernmentalUnit

Direct:

Village of Garden City

Overlapping:County of Nassau

Garden CitySchool District

$ 1 1,452,809 $

$ 3,667,105,000

$ 297,575,000

$ 516,532,000

$ gt,366,119

-0- $ t 1,452,809

$ 3,150,573,000

266,208,881

Outstandinglndebtedness Exclusions

Netlndebtedness

EstimatedPercentageApplicable

(a)

2.88o/o

EstimatedShare of

OverlappingDebt

$ 11 ,452,809

$ 90,736,502

15,839,428Town of Hempstead 5.95%

$ 43,460,000 0 43,460,000 100% 43,460,000

Totaloverlapping debt 4,008,140,000 547,898 .119 3,460,241,881 150,035,931

Total direct and

overlapping debt $ 4,019,592,809 $ 547 1 19 $ 3,471,694,690 $ 161 ,488 ,740

Source: Offlce of the Village Auditor for the lncorporated Village of Garden City

(a) The percentage of overlapping debt applicable is estimated using taxable property values. Applicable percentages were

estimated by determining the portion of another governmental unit's taxable value that is within the district's boundaries and

dividing it by each unit's total taxable value.

-104-

INCORPORATED VILLAGE OF GARDEN CITYDEBT LIMIT MARGIN INFORMATION

Mav 31,2012

YearsEnded

Mav 31,

NetAssessedValuation

StateEqualization

Rate ValuationFu

20122011201020092008

$ 105,132,503105,793,780107,046,687109,372,046111,278,399

1.660/0

1.660/o

1.51Yo

1.51o/o

1.52o/o

$ 6,333,283,3136,373,119,2777,089,184,5707,243,181,8547 320 947 303

$ 34,359,710,317

6,871,943,263

481,036,028

21.440,000762,809

22,202,809

7,975,000'135 000

9,1'10,000

13,092,809

467,943,219

2.72%97.28Yo

Total Five Year Full Valuation

Average Five Year Full Valuation

Debt Limit - 7o/o o'l Average Full Valuation

lnclusions:Outstanding BondsCapital Loan Payable

Total lnclusions

Exclusions:Water DebtAppropriations for Repayment of Outstanding Bonds and Capital Loan

Total Exclusions

Total Net lndebtedness Subject to the Debt Limit

Net Debt Contracting Margin

Percent of Debt Limit ExhaustedPercent of Debt Limit Available

Last Ten Fiscal Years

1

YearsEnded

May 31,Constitutional

Debt Limit

Outstandinglndebtedness

May 31,Less:

Exclusions

lndebtednessSubject toDebt Limit

Net DebtContracting

Margin

Percent ofNet Debt

ContractingMargin

Available

2012201120102009200820072006200520042003

$ 481,036,028490,094,668488,656,640439,76't,724402,060,274355,638,965316,732,584278,616,238241,207,O52219,106,619

s 22,202,80918,798,51120,707,78215,885,38918,386,81912,441,3398,164,0899,010,000

10,585,00012,195,000

$ 9,1 10,00010,581 ,32010,841,4007,163,2888,220,0355,765,9912,170,OO02,425,0002,805,0003,080,000

13,092,8098,217,1919,866,3828,722,101

10j66,7846,675,3485,994,0896,585,0007,780,0009,115,000

$ 467,943,21948't,877,477478,790,258431,039,623391,893,490348,963,617310,738,495272,031,238233,427,052209,99't ,619

$ 2.72%1.68%2.02%1.98o/o

2.53%1.88Vo

1.89%2.36%3.23o/o

4.16%

Source: Office of the Village Auditor for the lncorporated Village of Garden City

- 105 -

INCORPORATED VILLAGE OF GARDEN CITYDEMOGRAPHIC AND ECONOMIC STATISTICS


Years EndedMay 31 , Population Personal lncome

Per Capitalncome

UnemploymentRate

Year-RoundHouseholds

Estimate

AverageHousehold

SizeEstimates

PopulationDensity PerSquare Mile

(a)

22,37122,37121,67221,67221,67221,67221,67221,67221,67221,672

48,48647,07447,30545,92745,95443,97642,41940,86239,32838,146

(b)

6.60%6.70%6.70%7.400/o

5.50%4.50o/o

3.10o/o

3.40%3.80%3.90%

7,3667,3667,3867,3867,3867,3867,3867,3867,3867,386

3.00

3.00

2.90

2.902.902,902.902.90

2.902.90

4,2614,2614,1284,'1284,1284,1284,1284,1284,1284,128

(a)

2012201120102009200820072006200520042003

$ 1,084,675,4701,053,082,98r1,025,186,688

995,326,882995,924,436953,037,738919,298,490885,559,242852,314,856826,692,822

Sources:

(a) U.S. Census Bureau

(b) This data was provided by the NYS Dept of Labor using the census share methodology with current LAUS dataand special tabulations of rounded household-only data from Census 2000 and 2010.

-106-

INCORPORATED VILLAGE OF GARDEN CITYPRINCIPAL EMPLOYERS

CURRENT AND NINE YEARS AGO

2012

RankNumber ofEm

1

2

34567I910

Name of Employer

Adelphi UniversityBookspan lnc.Garden City Hotel lnc.

Lord & TaylorTravelex AmericaMargolin Winer & Evans LLPMetropolitan Diagnostic lmagingJaspan Schlesinger Hoffman LLPVisiting Nurse Association of Long lslandL'abbate, Balkan Colavita & Contini LLP

Type

Higher EducationCatalog & Mail-order HouseHotelDepartment StoreBankingAccounting Auditing & BookkeepingMedical DoctorsLegal ServicesMedical Care ProviderLegal Services

1 ,100900475275218185140130129125

2003*

TypeNumber ofEmployeesName of Employer

Adelphi UniversityGarden City Hotel lnc.Bookspan lnc.Sears, Roebuck & Co.Northwest AirlinesMay Department Stores Co.Esselte CorporationBank of New YorkRoslyn Bankcorp.Saks & CompanyMerrill Lynch Pierce Fenner & Smith, lnc.

EmploymentCode

Higher educationHotelCatalog & Mail-Order HouseDepartment StoreTravelDepartment StorePackaging MachinerySavings lnstitutionSavings lnstitutionDepartment StoreSecurity Brokers & Dealers

ApproximateNumber ofEmplovees

AccccccD

D

D

D

More than 1000500- 1000250- 499200- 249

Source: Dun & Bradstreet Regional Business Directory (201 I edition)

*lnformation for the rank of principal employers in 2003 and the percentage of the Village's total employment was not available.

AB

cD

-107-

INCORPORATED VILLAGE OF GARDEN CITYFULL-TIME EQUIVALENT GOVERNMENT EMPLOYEES BY FUNCTION


Full-Time EquivalentEmployees as of May 3l , 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003

Function

General government supportPublic safetyTransportationEconomic assistance and opportunityCulture and recreationHome and community services

33107

18605721

33104

18605721

3B

10318695721

38111

20695721

11

3811

20695721

3911320705721

381220695721

1

381021

705821

38109

19

695821

38109

19

705821

Total 296 293 306 316 316 317 320 318 314 315

Source: Office of Village Auditor and Official Statements of the lncorporated Village of Garden City

-108-


- 109 -

INCORPORATED VILLAGE OF GARDEN CITYOPERATING INDICATORS BY FUNCTION/ PROGRAMLAST TEN FISCAL YEARS

Years Ended May 31, 2012 2011 2010 2009 2008

FUNCTION

Public SafetyBuilding

Building permits issuedPolice (calendar year)

Physical arrestsAided casesTraffic violationsParking violations

Fire (calendar year)Number of calls answeredlnspectionsMutualaid

TransportationHighway and streets

Street resurfacing (miles)Sidewalk repairs (sf)Curb replacement (lf)Snow plowing (days)lce control (days)

Gulture and RecreationParks & shade trees

Flowers plantedTrees planted

RecreationPool membersTennis contracts (hours)Tennis lessons (hours)

3481,5367,357

18,899

2861,5038,576

19,163

351

1,51 1

12,21915,745

1,299345

16

1,188517

15

1,078474

5

1,265112

12

234

2891,593

10,1 1318,182

1.2828,375

5,4201

1

27,000297

7,052137.50137.00

235

3181,5728,703

19,866

28,000128

7,159144.O0140.00

1.5223,307

5,3868þ

213

1.4222,244

6,55945

251

1,098246

12

1.1517,3794,912

411

377

2.0041,36512,613

1

I

28,000116

7,426144.00155.00

15,7412,5202,100

0

29,000159

8,118141.00156.50

15,9743,135

20,500

7,371

30,000236

8,518452.00146.50

16,9804,016

20,000

0

Home and Community ServiceSanitation

Refuse collected (tons)Recyclables collected (tons)Leaves composted (cu yds)

Sanitary sewers & storm drainsSewers relined

14,9352,255

20,600

15,2672,515

22,000

0 0

WaterWater pumped (billion gallons)Hydrants replacedWater main breaksService taps

* Statistics not maintained.Source: Various departments of the lncorporated Village of Garden City

1,612231816

1,715251623

1,4252516

21

1,536231214

1,591

2410

12

-110-

2007 2006

443

2761,484

12,77615,756

1,032371

5

2005

376

3051,470

13,37415,471

2004 2003

3241,421

13,71515,373

377

1.2532,460

8,30347

30,000

8,810146.00103.50

17,4002,928

20,000

0

1.7645,08412,868

922

1.44I 1,1388,186

519

1,62336

711

2.3356,24417,595

1018

3.6764,17720,855

712

338

3781,556

13,00716,867

1,096462

8

487

3941,519

13,49418,064

1,091447

14

1,076305

4

1,001

36221

45130,000

340

8,839146.50105.00

17,4104,O57

20,000

4,545

30,000373

8,846149.00101.50

16,7214,255

20,000

21,192

30,000450

8,922153.5090.00

17,3723,273

20,000

0

30,000400

9,027

16,3043,270

20,000

6,728

1,80030

3I

1,63433

510

1,721

29I

14

1,70726

612

-111-

INCORPORATED VILLAGE OF GARDEN CITYCAPITAL ASSET INDICATORS BY FUNCTION/ PROGRAMLAST TEN FISCAL YEARS

Years Ended May 31, 2012 2011 2010 2009 2008

Function

General GovernmentMunicipal buildings

Public SafetyPolice stationsPolice vehiclesFire stationsFire apparatus

TransportationHighways and streetsStreets (miles)StreetlightsVehicles

Culture and RecreationGreenspace park acreage (approximate)Street treesMajor parksNeighborhood parksRecreational fields & parks (acres)Swimming poolsSenior centersVehicles (parks)Vehicles (recreation)

Home and Community ServicesSanitationTransfer stationsVehicles

Sanitary sewersPumping stationsSewer mains

Storm drainsCatch basins

WaterWater wellsWater storage tanksVehicles

105

15

105

15

105

15

105

l5

10

515

24252525 25

1

253

15

1

253

15

I25

315

1

253

15

1

253

15

73.72,568

31

301.317,142

26

98.732

1915

1

19

268.3

1,003

73.72,568

3'1

301.317,O77

2

698.7

32

1915

1

19

268.3

1,003

73.72,563

31

301.317,077

2

698.7

32

1915

1

19

268.3

1,003

73.72,563

31

301.317,084

26

98.732

1915

73.72,555

32

301.316,998

2

598.7

32

1915

1

19

268.3

1,000

1

19

2

68.3

1,003

Source: Various departments of the lncorporated Village of Garden City

-112-

2007 2006 2005 2004 2003

2424242424

1

253

14

1

253

14

1

253

14

1

253

14

1

253

14

73.72,550

32

301.316,825

25

98.732

1915

19

268.3

1,000

73.72,519

32

301.316,674

2

598.7

32

1915

1

19

268.3

1,000

73.72,491

32

301.316,634

25

98.732

1915

19

268.3

1,000

73.72,463

32

301.316,561

25

98.732

1915

,|

19

268.3

1,000

73.72,435

32

301.316,411

25

98.732

1915

1

19

268.3

1,000

105

't5

105

15

105

15

105

15

105

15

-113-

Documents

INCORPORATED VILLAGE - Garden Citygardencityny.net/vertical/sites/{82C80390-C4CA-486E-AA10...INCORPORATED VILLAGE OF GARDEN CITY, ... demonstrated by the Planning Commission and the