HomeMy WebLinkAbout2016 CAFRCITY OF CARMEL INDIANA
Comprehensive Annual
Financial Report
Fiscal Year Ended December 31, 2016
Prepared by:
Board of Public Works and Safety
CITY OF CARMEL, INDIANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2016
This page has been intentionally left blank.
INTRODUCTORY SECTION Pages
Letter of Transmittal 8–15
Organizational Chart 16
List of Elected and Appointed Officials 17–18
FINANCIAL SECTION
Independent Auditor's Report 20–21
Management Discussion and Analysis 23–33
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position 34
Statement of Activities 35
Fund Financial Statements:
Governmental Funds:
Balance Sheet ‐ Governmental Funds 36
Reconciliation of the Balance Sheet ‐ Governmental Funds to the
Government‐wide Statement of Net Position 37
Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Governmental Funds 38–39
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances ‐ Governmental Funds to the Government‐wide
Statement of Activities 40
Proprietary Funds:
Statement of Net Position ‐ Proprietary Funds 41–42
Statement of Revenues, Expenses, and Changes in Net
Position ‐ Proprietary Funds 43
Statement of Cash Flows ‐ Proprietary Funds 44–45
Fiduciary Funds:
Statement of Fiduciary Net Position 46
Statement of Changes in Fiduciary Net Position 47
Notes to the Basic Financial Statements 48–87
Required Supplementary Information:
Schedule of Funding Progress Postemployment Healthcare Plan 88
Schedule of Employer Contributions Postemployment Healthcare Plan 88
1925 Police Officers' And 1937 Firefighters' Pension Plans:
Schedule of Actuarially Determined Contributions 89
Schedule of Net Pension Liability And Related Ratios 90
Schedule of Changes In Net Pension Liability 91
Notes to Schedules 92
Defined Benefit Pension Plans - Multiple Employer Plans:
Schedule of the City's Proportionate Share of the Net Pension Liability 93–94
Schedule of City Contributions 95
Notes to Schedules 96
City of Carmel, Indiana
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2016
TABLE OF CONTENTS
4
Pages
Budgetary Comparison Schedules - General Fund 97–100
Budgetary Comparison Schedules ‐ Motor Vehicle Highway Fund 101
Notes to the Required Supplementary Information -
Budgetary Comparison Schedules 102
Supplementary Information:
Nonmajor Governmental Funds - Information 103–105
Combining Balance Sheet - Nonmajor Governmental Funds:
Special Revenue Funds 106–108
Capital Projects Funds 109–110
Debt Service Funds 111
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Nonmajor Governmental Funds:
Special Revenue Funds 112–114
Capital Projects Funds 115–116
Debt Service Funds 117
Budgetary Comparison Schedules ‐ Nonmajor Governmental Funds 118–121
Statement of Net Position - Nonmajor Enterprise Funds 123
Statement of Revenues, Expenses, and Changes in Net Position -
Nonmajor Enterprise Funds 124
Statement of Cash Flows - Nonmajor Enterprise Funds 125–126
Combining Statements of Fiduciary Net Position - Pension and Agency Funds 128
Combining Statement of Changes In Fiduciary Net Position - Pension Funds 129
Schedule of Changes in Assets and Liabilities - Agency Funds 130
STATISTICAL SECTION
Financial Trends:
Net Position by Component 132
Changes in Net Position 133–134
Fund Balances ‐ Governmental Funds 135
Changes in Fund Balances ‐ Governmental Funds 136–137
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property 138
Property Tax Rates - Direct and Overlapping Governments 139
Principal Property Taxpayers 140
Property Tax Levies and Collections 141
Debt Capacity:
Legal Debt Margin Information 142
Ratios of Outstanding Debt by Type 143
Direct and Overlapping Governmental Activities Debt 144
Pledged‐Revenue Coverage 145
Demographic and Economic Information:
Demographic and Economic Statistics 146
Principal Employers 147
Operating Information:
Full‐Time Equivalent Employees by Function 148
Operating Indicators by Function 149
TABLE OF CONTENTS (CONTINUED)
For the Fiscal Year Ended December 31, 2016
City of Carmel, Indiana
Comprehensive Annual Financial Report
5
Lang Lang
INTRODUCTORY SECTION
Introductory Section:
Letter of Transmittal
City of Carmel Organization Chart
List of Principal Officials
6
This page has been intentionally left blank.
7
CHRISTINE PAULEY, CLERK-TREASURER
November 27, 2017
To the Honorable Members of the Carmel City Council, and
Citizens of the City of Carmel, Indiana:
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for the City
of Carmel (the City) year ended December 31, 2016. Responsibility for both the accuracy
of the presented data and the completeness and fairness of the presentation, including all
disclosures, rests with City management. To the best of our knowledge, the enclosed data is
accurate in all material respects and is presented in a manner designed to fairly set forth the
financial position and the results of operations of the various funds of the City of Carmel.
All disclosures necessary to enable the reader to gain an understanding of the City’s
financial activity have been included.
This report presents management’s representations concerning the finances of the City.
Consequently, management assumes full responsibility for the completeness and reliability of
all the information presented in this report. To provide a reasonable basis for making these
representations, management has established a comprehensive internal control framework
designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient
reliable information for the preparation of the City’s financial statements in conformity
with generally accepted accounting principles (GAAP). Because the costs of internal
controls should not outweigh the benefits, the City’s comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement.
Indiana law requires an annual audit of the financial records and transactions of all City
functions. The Indiana State Board of Accounts performed the City’s audit for 2016. Their
audit was conducted in accordance with generally accepted governmental auditing
standards. The State Board of Accounts concluded, based upon the audit, that there was a
reasonable basis for rendering an unqualified opinion the that City of Carmel’s financial
statements for the year ended December 31, 2016, are fairly presented in conformity with
GAAP. The independent auditor’s report is presented as the first component of the
financial section, on page 20 of this report.
ONE CIVIC SQUARE, CARMEL, IN 46032 www.carmel.in.gov
CITY OF CARMEL
JAMES BRAINARD, MAYOR
8
GAAP requires that management provide a narrative introduction, overview, and analysis to
accompany the basic financial statement in the form of management’s discussion and analysis
(MD&A). The MD&A complements this letter of transmittal and should be read in conjunction
with it. The City’s MD&A can be found immediately following the independent auditors’
report in the financial section of the CAFR.
CITY PROFILE
The City of Carmel was incorporated in 1976, and it is located in Hamilton County, directly
north of Indianapolis. The City occupies more than 47 square miles, with more than 482 miles
of public roadways. The City has experienced tremendous growth within the past few decades
and serves mainly as a residential and commercial area for both Carmel and Indianapolis
professionals.
Carmel has an estimated population of 86,946 (according to a partial special census
conducted in 2016). Personal income statistics are above national and State of Indiana
averages. The median household income level is $107,505, and the average price of a home
is $293,600. Hamilton County ranks first in the State of Indiana for median household
income and second in the State for per capita personal income. The unemployment rate in
Hamilton County has been substantially lower than that of the State of Indiana during the
past 10 years.
The City is recognized for its sound corporate environment, high-quality residential
neighborhoods, outstanding schools, cultural amenities, well-developed infrastructure, and
strong economy. The City was ranked as the No. 1 place to live in America by Money
Magazine for cities with a population of 50,000 to 300,000 in 2012, and is consistently ranked
among the best places to raise a family and among the safest cities by a variety of rating
websites and agencies. The proximity of Carmel to Indianapolis provides increased
employment and higher education opportunities for local residents.
City Structure
The City operates under a Mayor, Clerk-Treasurer, Judge of the City Court, and a seven-
member Common Council pursuant to Indiana law. The Mayor serves as the chief executive of
the City and serves a four-year term. The Clerk-Treasurer, also elected to a four-year term,
serves as the fiscal officer and is responsible for the financial and other records of the City.
The legislative and fiscal body for the City is the Common Council. The seven-member
Council is comprised of two at-large and five district representatives who are elected to serve
four-year terms. The Council meets formally twice a month to conduct City business. Its duties
include the enactment of all ordinances and resolutions and approval of the annual budget.
The administrative body for the City is the Board of Public Works and Safety. This
three-member board consists of the Mayor, who serves as the presiding officer, and two
mayoral appointees. This Board is responsible for bidding infrastructure projects as well
as other duties prescribed by Indiana state law.
9
The City provides services in the following areas: public safety (police, fire, EMS, and
emergency communications), community services (planning, code enforcement, and economic
development), parks and recreation, transportation (streets and sidewalks), engineering, storm
water drainage, court, and general administrative services. In addition, the City provides
wastewater utility services and drinking water.
The City of Carmel includes several departments and services, including the Community
Services, Community Relations and Economic Development, Redevelopment, Engineering,
Human Resources, Street Department, Law, Administration, Information Systems, Police,
Fire, Carmel Clay Communications Center and the Carmel Water-Sewer-Storm Water
Utilities.
The City employs a total of approximately 534 full-time and 15–20 part-time employees with
union representation as follows:
Carmel Professional Firefighters / IAFF #4444
Firefighters 155
Fraternal Order of Police Lodge #185
Police 111
Planning and Zoning
The Carmel Plan Commission promotes orderly growth throughout the City and other areas of
Clay Township. The eleven-member Plan Commission is appointed by the following: Mayor
(5), City Council (1), Park Board (1), City Engineer (1), Board of Public Works (1) and County
Commissioners (2). The Board of Zoning Appeals has five members appointed by the Mayor,
City Council, and Plan Commission.
Component Units
Certain financing and economic development functions are provided by a legally separate
redevelopment authority and a 501(c)(4) corporation for which the City is financially
accountable. Although both are legally separate entities, they provide service almost exclusively
to the City and, therefore, are included as an integral part of the City’s financial statements.
Additional information on these entities can be found in Note I.B of the notes to the financial
statements.
CITY ECONOMIC CONDITION
The City has experienced extensive residential and commercial development in recent years
and has been one of the fastest growing areas in the Indianapolis Metropolitan Area. More
than 100 companies have their international, national, or regional headquarters located in the
City. More than 2,300 jobs have been added since October 2015. The newest or expanded
businesses in Carmel include Allied Solutions, Delta Faucet expansion, Demand Jump,
Eleven Fifty Consulting, enVista, Flix Brewhouse, Geico, GyanSys-relocation, HDR
Advisory, Kroger, Market District, Next Gear, Orchard Software, Policy Stat, Stratice
Healthcare, and Theta Chi relocation.
10
Along U.S. Highway 31, known as the Meridian Corporate Corridor, numerous modern multi-
story office complexes have been built in recent years. The corporate headquarters and offices
of major corporations such as Delta Faucet, Allied Solutions, American Specialty Health, Blue
Horseshoe Solutions, CNO Financial Group, Inc., Monster.com, and Liberty Mutual Insurance
are among the many office complexes that form the Meridian Corridor. In addition to these
corporate headquarters, the Corridor's strength as a provider of medical services is attested to
by numerous healthcare facilities, including St. Vincent Carmel Hospital and its newly built
Women’s Center, St. Vincent Heart Center, I.U. Health North Hospital (formerly Clarian North
Medical Center), and Franciscan St. Francis Health.
One of the City’s largest employers is CNO Financial Group, Inc., a life insurance holding
company that was founded in 1979 and acquired numerous insurance companies in the
1980s and 1990s. According to company officials, the number of employees in Carmel
currently numbers approximately 1,700.
Liberty Mutual Insurance, which began operations in 1912, employs 1,200 according to
company officials. The employment trend has been steady in the past year and is expected to
remain steady in the upcoming year.
Midcontinent Independent Transmission System Operator, Inc. (MISO) located its corporate
headquarters in Carmel in 2002, constructed a second building in 2012, and just announced
another expansion of offices and jobs in a new facility it will build adjacent to its existing
structure. The company employs approximately 854 expecting employment to increase by 50
to 70 employees by the end of 2016.
Several other established major employers in the City include GEICO, with more than 1,200
employees; Resort Condominium Int’l. (RCI), a resort hotel exchange network, with 1,100
employees; The Capital Group, a financial services management company, with
approximately 1,000 employees; Next Gear Capital with 877 employees; KAR Auction with
850 employees; American Specialty Health with 650 employees; Duke Realty with 475
employees; Allegion, the headquarters for a security technology company, with 400
employees; and Delta Faucet, with 360 employees in Carmel.
QUALITY OF LIFE
During the past 10 years, park land in Carmel has increased from 20 to more than 1,000 acres
through purchases and gifts. Central Park, which opened in 2007, provides many recreational
opportunities for residents of the City. The park includes a 146,000-square-foot community
recreation center, which houses a three-court gymnasium, an indoor walking/jogging track, a
workout center, meeting rooms, a banquet facility, park offices, and outdoor and indoor
aquatic center.
Another unique Carmel recreational feature is the Monon Greenway, a five-mile paved trail
built on a former rail corridor, which extends through the center of Carmel and connects to
the 10.5-mile Monon Trail system in Marion County to the south, extending all the way to
downtown Indianapolis, and to Westfield to the north, connecting to the Grand Park
sports complex. The trail system is very popular with joggers, walkers, bicyclists, and
rollerbladers.
11
Cultural activities are provided by the $175-million Center for the Performing Arts in City
Center, which includes the Palladium – a state-of-the-art, 1,600-seat concert hall; the
Tarkington, a 500-seat proscenium arch theater, and the 200-seat Studio Theater. The Center is
home to many local arts organizations including The Booth Tarkington Civic Theatre and the
Carmel Symphony Orchestra.
The Carmel Arts and Design District, located in the heart of Old Town Carmel, is comprised
of galleries, eateries, boutiques, gift and interior design shops, antique stores, and other retail
establishments geared toward the arts. It is also home to the Indiana Design Center, a premier
destination for design in the Midwest.
The Carmel Clay Public Library serves residents of the City. The library provides students,
teachers, and residents of the City access to books, other resource materials, and programs
located in the library as well as a new mobile library service. The library is consistently ranked
in the top ten libraries in the country by Hennen's American Public Library Ratings
("HAPLR"). The present 116,000-square-foot facility provides state-of-the-art technology,
group study rooms, and two technology centers.
EDUCATION
Carmel Clay Schools serves the residents of the City and surrounding Clay Township.
Currently, the school system has one high school, three middle schools, and eleven elementary
schools. The superintendent’s office reports 2015–2016 enrollment for the School Corporation
at 15,855 students, with approximately 1,069 certified and 1,315 non-certified employees.
Special studies in the areas of Gifted & Talented, English as a New Language, Special
Education, and Title I services are provided by the School Corporation. In addition, the J.
Everett Light Career Center provides vocational programs in auto mechanics, computers,
construction trades, dental occupations, electronics, machine trades, and radio/television
production, among others.
REDEVELOPMENT EFFORTS
In 1998, the City of Carmel and its Redevelopment Commission began an aggressive effort to
redevelop and revitalize the center of the City, including the historic downtown, into a cultural
and civic center, undergoing a tremendous amount of new construction, including offices,
restaurants, retail, upscale apartments, condominiums, townhomes, and public spaces and
monuments designed to create a vibrant urban atmosphere.
The oldest part of this area is known today as the Carmel Arts & Design District, home to more
than 100 arts- and design-related businesses, including art galleries, design studios, and the
Indiana Design Center, where professional designers maintain offices and showrooms.
12
The City Center redevelopment project is home to the Center for the Performing Arts and
several mixed-use buildings, including the Carmel City Center, the James, the Nash, the Mezz
on the Monon and nearly a dozen more buildings scheduled to be constructed in the next few
years.
The City also recently approved a new redevelopment area known as Midtown, which will
include mixed-use buildings and has already attracted two corporate headquarters in
buildings that will be under construction this year.
Finally, the City has approved a redevelopment project area on the southern border of the City
government center known as the Proscenium. It is in the beginning stages of transforming
under-utilized land into a mixed-use project with six buildings, located along a heavily traveled
roadway.
Development has also occurred just north of the Arts & Design District at Clay Terrace, an
upscale open-air mixed-use and retail environment that includes approximately 500,000 square
feet of retail space, dining options, 70,000 square feet of second-story office space, and an area
for shows and concerts. The $100- million development opened in October 2004.
Due to substantial growth in residents and daily commuters in Carmel, the City saw the need to
redesign State Road 431, one of two main north–south thoroughfares passing through the City.
After discussions with the State of Indiana, which wanted to maintain several intersections
controlled by traffic signals, the City of Carmel chose to move in a new direction – replacing
those intersections with grade-separated interchanges, controlled by roundabouts. The state
was not willing to do that, so the City took State Road 431 over from the State and transformed
it into free-flowing Keystone Parkway. Carmel received $90 million from the State for
reconstruction expenses. The unique and award-winning design with double roundabout
interchanges allows traffic to travel more easily through this previously congested
thoroughfare.
After seeing the success of the Keystone Parkway project, the State of Indiana in 2011 began
construction on a project to upgrade 13 miles of existing highway on US Highway 31
between I-465 in Indianapolis to State Road 38 north of the City. Now substantially
completed, the reconstruction of US Highway 31 has added new roundabout interchanges and
reconstructed ramps and bridges and has reduced congestion and improved safety in the area.
Additionally, the creation of new interchanges has helped spur additional economic
development on Main Street.
PENSION PLANS
The City of Carmel has five pension plans for its employees. All full-time employees, with the
exception of public safety officers, are members of the Public Employee Retirement Fund of
Indiana (PERF). PERF is classified as a cost-sharing, multiple-employer defined benefit plan
and acts as a common investment and administrative agent for governmental units in Indiana.
Police and fire department officers hired subsequent to April 30, 1977, are members of the 1977
Police Officers and Firefighters’ Pension Fund administered by PERF. Both plans are fully
funded on an actuarially determined accrual basis. Police officers hired prior to May 1, 1977, are
13
members of the Police Pension Fund established in 1925 by the State of Indiana. Firefighters
hired prior to May 1, 1977, are members of the Fire Pension Fund established in 1937 by the
State of Indiana. Additional information on funding policies and pension costs is in Note III.G in
the notes to the financial statements.
OTHER POST-EMPLOYMENT BENEFITS (OPEB)
The City currently provides other post-employment benefits (OPEB) in the form of healthcare
benefits for retirees. Such benefits are self-funded by the City and administrated by a third party.
The retiree healthcare plan is not a contractual obligation that extends beyond the current budget
year. The City is under no obligation to continue to offer similar benefits for future new hires.
Additional information regarding anticipated future payments can be found in Note III.H. in the
notes to financial statements.
FINANCIAL INFORMATION
City Budget & Budgetary Controls
The City Council is required to adopt a final budget through the passage of an ordinance no
later than November 1, following a public hearing process conducted to obtain taxpayer
comments.
This annual budget serves as the foundation for the City’s financial planning and control. The
budget is prepared by fund, department (e.g., police), and major category (e.g., personal
services). City administrators are generally authorized to transfer limited budgeted amounts
within departments between line items within any major category; however, any revisions that
alter the total expenditures of any major category must be approved by the City Council.
Transfers between funds must also be approved by the City Council. At the end of the fiscal
year, encumbered appropriations are carried forward and become part of the following year’s
budget while appropriations that have not been encumbered lapse.
Accounting System
The City’s accounting records for general government operations are maintained by the Clerk
Treasurer’s Office under a cash basis, with the revenues being recorded when received.
Expenditures are recorded when claims are approved and paid. Accounting records for the
City’s proprietary activities are maintained on the full accrual basis, with revenues recorded
when earned and expenses when incurred. In maintaining the City’s accounting system,
consideration is given to the adequacy of internal controls. Internal controls are designed to
provide reasonable assurance regarding the safeguarding of assets and to ensure the reliability
of financial records and maintaining accountability for assets. The concept of reasonable
assurance recognizes that the cost of control should not exceed the benefits likely to be
derived. The evaluation of costs and benefits requires continuing estimates and judgments by
City management. We believe that under the Clerk Treasurer’s Office direction, the City’s
system of internal accounting controls continues to adequately safeguard assets and provide
reasonable assurance that financial transactions are properly recorded.
Risk Management
The City carries traditional insurance for workers’ compensation, automobile liability and
physical damage, general liability, public officials’ liability, property and casualty, inland
marine/boiler coverage, and crime insurance coverage. The City also carries builder’s risk and
flood insurance for the Wastewater Treatment Utility.
14
ACKNOWLEDGEMENTS
The preparation of this report involved many dedicated people across the organization. In
particular, we would like to express appreciation to Dianne Walthall and Ann Bingman of
the Clerk-Treasurer’s office, whose support and dedication made the report possible. We
would like to express our appreciation to the State Board of Accounts for their
professionalism and support. Furthermore, we would like to thank C.L. Coonrod and
Company, CPAs, for consulting on the application of GAAP and other technical
requirements of the CAFR and to Kieser Consulting Group, LLC, for their professional
assistance in preparing the City’s assets ledgers. Finally, we would like to thank the City
Council, without whose leadership and support the preparation and results of this report
would not have been possible.
Respectfully submitted,
James Brainard
Mayor
Christine Pauley
Clerk-Treasurer
15
Public Safety GIS TechQuartermasterUrban Forest SpecialistPublic Works CoordinatorFirefighter Mechanic IIHazardous Waste CoordinatorAccreditation ManagerCustomer Service ManagerElectrical / Controls EngineerSkilled LaborOffice AdministratorOffice AdministratorCode Enforcement InspectorRight of Way InspectorEngineerQuartermaster / Fleet ManagerForemanSenior InspectorCrime Scene/Evidence TechnicianSenior Utilities AccountantTelecommunicatorEnvironmental PlannerStorm Water AdministratorSurvive Alive CoordinatorMechanic IAssistant Plant ManagerAdministrative AssistantGIS TechnicianEconomic DevelopmentCode Enforcement OfficerPlan Review CoordinatorCommunications Tech I & IIPlanning AdministratorConstruction InspectorLieutenantLieutenantPatrol Officer 1st and 2nd Class, ProbationaryPlant ManagerSkilled Labor / Foreman IIClub House/Pro Shop OperationsNetwork AdministratorSpecial Event CoordinationBldg. Inspector/Plans ExaminerEngineering AdministratorCaptainFood/Beverage OperationsOffice AdministratorApplications AdministratorMedia RelationsDeputy Bldg. CommissionerTransportations System CoordinatorDivision HeadAdministrative Assistant I & IIParalegal SergeantDistribution / Collection ManagerOffice AdministratorAsst. ChiefOperations ManagerSupervisorGrounds MaintenanceEmployment/Training AdministratorDatabase AdministratorPublic RelationsSkilled Labor / Foreman IPlanning AdministratorConstruction ManagerBattalion ChiefExecutive / Legal SecretaryMajorManager of Water QualityCourse ManagementEmployee Benefits AdministratorGIS CoordinatorOffice ManagerDirectorBuilding CommissionerAsst. City EngineerAsst. ChiefAsst. City AttorneyCOMMUNITY SERVICESENGINEERINGFIRELAWPOLICEUTILITIESCOMMUNITY RELATIONS & ECONOMIC DEVELOPMENTSTREETBrookshire GC ManagerHuman Resources DirectorInformation Services/Communi‐cations DirectorDirectorDirectorCity EngineerFire ChiefCity AttorneyPolice ChiefDirectorStreet CommissionerREDEVELOPMENTADMINISTRATIONFinancial AnalystAccounts PayableAdministrative AssistantPayroll ManagerCity of Carmel, IndianaORGANIZATIONAL CHARTFISCALClerk ‐ TreasurerLEGISLATIVECommon CouncilJUDICIALCourtDeputy Clerk of City BusinessSeven Council MembersClerk of Court AdministratorAsst. Clerk of Court AdministratorDeputy Clerk I & IIBailiffEXECUTIVE(Mayor)Chief Deputy Clerk‐Treasurer ‐ Director of FinanceDirector of Finance ‐ Investments16
Mayor City Court Judge Jim Brainard
Clerk-Treasurer
Christine Pauley Brian Poindexter
Council Chaplain
Northwest District
Laura Campbell
Council President
Northeast District
Sue Finkam
City Council-At-Large
Ron Carter
Council Vice President
City Council-At-Large
Kevin "Woody" Rider
Central District
Bruce Kimball
Council Parliamentarian
Southwest District Southeast District
Anthony (Tony) Green Jeff Worrell
City of Carmel, Indiana
List of Elected and Appointed Officials
For the Fiscal Reporting Year Ended December 31, 2016
Elected Officials
17
For the Fiscal Year Ended December 31, 2016
Appointed Officials
City of Carmel, Indiana
List of Elected and Appointed Officials
(Continued)
Board of Public Works
(Appointed by the Mayor)
Mayor James Brainard
Lori Watson
Mary Ann Burke
Carmel Redevelopment Authority
(Appointed Officials)
Robert Bush
Debra Zipes
John Getz
Carmel Redevelopment Commission
(Appointed Officials)
William Hammer
David C. Bowers
Henry Mestetsky
Jeff Worrell
Bill Brooks
Michael Kerschner
18
Since opening in 2011, the Center for the Performing Arts has welcomed more than 700,000 audience
members to more than 1,700 performances. Tickets have been purchased by households in all 92 counties
within Indiana, all 50 states and 23 countries. More than 60 percent of ticket-buying households are located
outside of Hamilton County.
FINANCIAL SECTION
Financial Section:
Independent Auditor's Report
Management Discussion and Analysis
Basic Financial Statements
Required Supplementary Information
Combining and Individual Fund Financial
Statements and Schedules
19
STATE OF INDIANA
AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
302 WEST WASHINGTON STREET
ROOM E418
INDIANAPOLIS, INDIANA 46204-2769
Telephone: (317) 232-2513
Fax: (317) 232-4711
Web Site: www.in.gov/sboa
INDEPENDENT AUDITOR'S REPORT
TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City of
Carmel (City), as of and for the year ended December 31, 2016, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the Table of
Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and dis-
closures in the financial statements. The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
20
INDEPENDENT AUDITOR'S REPORT
(Continued)
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City of Carmel, as of December 31, 2016, and the
respective changes in financial position and, where applicable, cash flows thereof and for the year then
ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management Discussion and Analysis, Schedule of Funding Progress Postemployment Healthcare Plan,
Schedule of Employer Contributions, Schedule of Actuarially Determined Contributions, Schedule of Net
Pension Liability And Related Ratios, Schedule of Changes In Net Pension Liability, Schedule of the City's
Proportionate Share of the Net Pension Liability, Schedule of City Contributions, Budgetary Comparison
Schedules - General Fund, and Budgetary Comparison Schedules - Motor Vehicle Highway Fund, as listed
in the Table of Contents, be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited procedures
to the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with management's responses to our inquiries,
the basic financial statements, and other knowledge we obtained during our audit of the basic financial
statements. We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying Introductory Section,
combining nonmajor fund statements, other budgetary schedules, and Statistical Section are presented for
purposes of additional analysis and are not a required part of the basic financial statements.
The combining nonmajor fund statements and other budgetary schedules 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. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to prepare
the basic financial statements or to the basic financial statements themselves, and other additional proce-
dures in accordance with auditing standards generally accepted in the United States of America. In our
opinion, the combining nonmajor fund statements and other budgetary schedules are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
The Introductory Section and Statistical Section 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.
Paul D. Joyce, CPA
State Examiner
November 27, 2017
21
This page has been intentionally left blank.
22
Financial Highlights
Overview of the Financial Statements
City of Carmel, Indiana
MANAGEMENT DISCUSSION & ANALYSIS
For the Fiscal Year Ended December 31, 2016
As management of the City of Carmel, we offer readers of the City's financial statements this narrative overview and analysis of
the financial activities of the City for the fiscal year ended December 31, 2016. We encourage readers to consider the information
presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found
on page 8 of this report, and the transactions, events, and conditions reflected in the City’s financial statements, beginning on page
34 of this report.
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows at the close of the fiscal
year by $401,277,741 (net position).
• The City's overall net position decreased $1,601,699 from the prior fiscal year. The reasons for this overall decrease are
discussed in the following sections for governmental activities and business-type activities.
• At the close of the current fiscal year, the City's governmental funds reported combined fund balances of $278,000,684, an
increase of $216,850,004 in comparison with the prior year. Approximately $15,066,402 of this amount (5.4%) is available for
spending at the government's discretion (unassigned fund balance).
• At the end of the current fiscal year, unrestricted fund balance (the total of the committed, assigned, and unassigned components
of fund balance) for the General Fund was $16,977,282, or approximately 27.5% of total General Fund expenditures.
• The City's total outstanding long-term debt increased by $253,669,834 during the current year.
Government-wide Financial Statements. The government-wide financial statements are designed to provide readers with a
broad overview of the City's finances, in a manner similar to a private-sector business.
The statement of net position presents financial information on all of the City's assets, liabilities, and deferred inflows/outflows of
resources, with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful
indicator of whether the financial position of the City is improving or deteriorating.
The discussion and analysis provided here are intended to serve as an introduction to the City's basic financial statements. The
City's basic financial statements consist of three components: 1) government-wide financial statements, 2) fund financial
statements, and 3) the notes to financial statements. This report also includes supplementary information intended to furnish
additional detail to support the basic financial statements themselves.
The statement of activities presents information showing how the City's net position changed during the most recent fiscal year.
All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing
of related cash flows. Thus, revenues and expenses are reported for some items that will only result in cash flows in future fiscal
periods (e.g., uncollected taxes and earned but unused personal leave).
Both of the government-wide financial statements distinguish functions of the City that are principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion
of their costs through user fees and charges (business-type activities). The government-type activities include general government,
public safety, streets and other infrastructure, economic development, and culture and recreation. The business-type activities of
the City include water, sewer, storm water, and other.
23
The government-wide financial statements begin on page 34 of this report.
The basic governmental fund financial statements begin on page 36 of this report.
The basic proprietary fund financial statements begin on page 41 of this report.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally
separate redevelopment authority and a 501(c)(4) corporation for which the City is financially accountable. These components,
although legally separate, function for fiscal purposes as departments of the City, and therefore have been included as integral
parts of the primary government.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to
ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental
activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in assessing a government's near-term financing
requirements.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government.
Fiduciary funds are not reported in the government-wide financial statements because the resources of those funds are not
available to support the City's own programs. The accounting used for fiduciary funds is much like that used for the proprietary
The City maintains two different types of fiduciary funds. Pension trust funds are used to report resources held in trust for retirees
and beneficiaries covered by the 1925 Police Officers' Pension Plan and the 1937 Firefighters' Pension Plan. Agency funds report
resources held by the City in a custodial capacity for individuals, private organizations, and other governments.
Proprietary Funds. The City maintains one type of proprietary fund. Enterprise funds are used to report the same functions
presented as business-type activities in the government-wide financial statements. The City uses enterprise funds to account for its
utility and office rental operations. The enterprise fund financial statements provide separate information for the water, storm
water, and sewer utilities, which are considered to be major funds of the City.
Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare
the information presented for governmental funds with similar information presented for governmental activities in the
government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-
term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues,
expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and
governmental activities.
The City maintains fifty-eight individual governmental funds. Information is presented separately in the governmental fund
balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General
Fund, Redevelopment Commission Fund, Redevelopment Authority Debt Service Fund, Redevelopment Authority Capital
Projects Fund, Bond Bank Project Fund, 2016 Project Fund, and Motor Vehicle Highway Fund, which are considered to be major
funds. Data from the other governmental funds are combined into a single aggregated presentation. Individual fund data for each
of these nonmajor governmental funds is provided in the form of combining statements in the combining and individual fund
statements and schedules section of this report.
24
The fiduciary fund financial statements begin on page 46 of this report.
Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding
Government-wide Overall Financial Analysis
City of Carmel's Net Position
Current and other assets
Capital assets
Total assets
Total deferred outflows
of resources
Other liabilities
Long-term liabilities
outstanding
Total liabilities
Total deferred inflows
of resources
Net position:
Restricted
Unrestricted
Total net position 288,793,546$
19,076,703
897,584,439
916,661,142
16,618,619
415,711,741
16,596,030
714,216,239
Governmental Activities
25,355,156
(35,777,877)
1,045,275,474
296,360,734$
696,894,805
993,255,539
The City adopts an annual appropriated budget for its General and Motor Vehicle Highway Funds, as well as several nonmajor
funds. Budgetary comparison statements have been provided for these funds to demonstrate compliance with the budget.
of the data provided in the government-wide and fund financial statements. The notes to the financial statements begin on page 48
of this report.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required
supplementary information. This information includes budgetary comparison schedules as well as more detailed information
concerning the City's progress in funding its obligation to provide pension and other post-employment benefits (OPEB)
As noted earlier, net position, over time, may serve as a useful indicator of a government's financial position. In the case of the
City, assets and deferred outflows of resources exceeded liabilities and deferred inflows by $401,277,741 at the close of the fiscal
year.
2016
338,123,426$
(39,789,157)
401,277,741$
to its employees. Required supplementary information can be found beginning on page 88 of this report.
2,086,745
2,248,658
153,964,755
156,213,413
487,040
113,210,726
185,848,873
25,355,156
490,089,198
501,409,546
13,170,960
314,601,738
25,629,325
(42,319,616)
957,267,415
1,295,390,842
39,166,660
2016
10,770,063
2015
101,102,415$
944,173,059
35,979,988
13,569,006
644,053,953
657,622,959
Net investment in
capital assets
730,812,269
297,911,447$
2015
10,616,533$
256,060,231
266,676,764
13,658,000
427,812,464
25,629,325
(43,467,286)
409,974,503$
37,120,339
2015
90,485,882$
688,112,828
-
(1,147,670)
112,063,056$
299,216,267
260,372,611
302,135,303
2,046,321
2,480,673
183,368,200
(4,011,279)
112,484,195$
Total
2016
41,762,692$
Business-type Activities
5,848,556
116,495,474
-
778,598,710
33,893,243
11,320,348
The combining statements referred to earlier in connection with nonmajor governmental funds are presented immediately
following the required supplementary information on budgetary comparison statements. Combining and individual fund statements
and schedules can be found starting on page 106 of this report.
25
Other post-employment benefits – retiree healthcare obligation
Non-uniform public employee retirement plan obligation
'37 firefighters pension plan obligation
'25 police pension plan obligation
'77 firefighters pension plan obligation
'77 police pension plan obligation
Governmental Activities.During the current fiscal year, net position for governmental activities decreased $2,504,833 from
46,930,045$
Another contributing factor to the deficit can be attributed to the City’s growth and aggressive acquisition of capital assets for
infrastructure and other amenities. This growth and improvement have been financed with debt, resulting in significant transaction
costs and amortization of deferred outflows. The City views these acquisitions as positive indicators. They reflect the City’s effort
to attract and retain as residents the most productive people in Central Indiana, and also to attract corporate headquarters and
regional offices from all over the world. The success of this effort has resulted in a rich commercial tax base, yielding one of the
lowest local tax rates in Indiana, in spite of the cost of debt.
The City's overall net position decreased $1,601,699 from the prior fiscal year. The reasons for this overall decrease are discussed
in the following sections for governmental activities and business-type activities.
Notwithstanding the City’s ultimate liability for the ’25 and ’37 plans, the State of Indiana has established a practice of
appropriating funds to cover these benefits. The State of Indiana is not obligated to continue making these payments, but it has
done so every year since 2009. Consequently, the City has incurred no cost from its own resources to service these plans. Also, the
retiree healthcare plan is not a contractual obligation that extends beyond the current budget year. The liability is shown in the
statements because it has been the City’s consistent practice to provide this benefit. However, the City believes it is not legally
obligated to do so.
12,920,443$
11,082,182
By far, the largest portion of the City's net position reflects its investment in capital assets (e.g., land, buildings, machinery and
equipment, vehicles, and infrastructure), less any related outstanding debt that was used to acquire those assets. The City uses
these capital assets to provide a variety of services to its citizens. Accordingly, these assets are not available for future spending.
Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources used to repay
this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities.
An additional portion of the City's net position represents resources that are subject to external restriction on how they may be
used. The remaining balance of spendable net position is a deficit of $39,789,157.
10,852,994
9,971,078
The City reported significant negative unrestricted net position of $35,777,877 in governmental activities and negative unrestricted
net position of $4,011,279 in business activities, totaling $39,789,157. These deficits are due in part to unfunded pension and
retiree healthcare liabilities of $46.9 million, as follows:
901,944
the prior fiscal year for an ending balance of $288,793,546. The decrease was less than one percent, indicating a relatively stable
net position.
1,201,404
(100) ‐ 100 200 300 400 500
Millions
City of Carmel
Net Position
December 31, 2016
Unrestricted Restricted Net investment in capital assets
26
The following chart displays Program Revenues and Expenses by function for the City's Governmental Activities.
The following chart displays the revenue composition for the City's Governmental Activities funds.
‐
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
General government Public safety Streets,
infrastructure
Economic
development
Culture and
recreation
Interest on long‐term
debt
CITY OF CARMEL
Program Revenues vs. Expenses
Program Expenses Program Revenues
Property taxes
35.29%
Other taxes
43.66%
Charges for services
8.92%
Operating grants and
contributions
0.08%
Capital grants and
contributions
0.58%Other
11.48%
City of Carmel
Governmental Activities Revenue
27
City of Carmel's Changes in Net Position
REVENUES:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Property taxes
Other taxes
Other
Total revenues
EXPENSES:
General government
Public safety
Streets, infrastructure
Water distribution
Sewer collection
Stormwater drainage
Economic development
Culture and recreation
Interest on long-term debt
Other
Total expenses
Special item
Transfers
NET POSITION - beginning
Restatement
NET POSITION - ending
397,654,792
289,541,516
297,911,447$
128,603,705
402,879,439
401,277,741$ 288,793,546$
Change in net position
before special item and
transfers
1,014,100
112,484,195$ 409,974,503$
(6,613,069) - - (7,095,064) -
NET POSITION -
beginning, adjusted
297,911,447 289,541,516 112,063,056 108,113,276 409,974,503
Total
184,469,828
6,038,667
52,989,360
65,551,375
10,122,290
-
-
706,935
31,814,317
2,509,453
Governmental Activities
291,298,378
- -
(1,601,699)
- 706,935
60,618
2016
112,651
2015
8,570,357$
20152016
Increase (decrease) in
net position
2016
13,387,122$
112,651
865,258
52,989,360
65,551,375
17,240,292
150,146,058
30,984,884
40,267,560
12,340,719
-
-
54,995,901
42,406,191$
Business-type Activities
21,743,745
2015
4,344,880
619,000
(1,014,100)
108,113,276
112,063,056$
-
58,899,865
-
(1,606,319)
903,134
10,122,290
5,545,855
-
18,549,674
29,019,069$
-
5,173,409
-
-
131,292
34,323,770
-
-
3,566,549
135,959,536
20,841,943
44,313,645
29,584,125
7,355,831
8,369,931
26,011,545$
-
-
-
-
77,080
26,088,625
-
-
13,542,037
7,305,928
-
-
-
895,780
20,757,571
10,771,611
44,104,576
4,542,707 4,542,707
895,780
619,000
-
12,319,711
397,654,792
19,439,437
17,371,584
5,545,855
54,995,901
20,834,651
162,048,161
20,841,943
44,313,645
29,584,125
(481,995)
34,581,902$
60,618
3,566,549
44,104,576
58,899,865
150,347,450
13,542,037
10,016,870
186,071,527
(1,601,699)
-
154,257,210
(4,111,152)
-
1,606,319
(2,504,833)
11,700,711
30,984,884
40,267,560
12,340,719
111,581,061
19,439,437
10,016,870
-
-
3,949,780
7,305,928
10,771,611
18,549,674
- - 1,651,075 - 1,651,075 -
28
The following chart displays program revenues and expenses by function for the City's Business-Type Activities.
The following chart displays the revenue composition for the City's Business-type Activities funds.
Financial Analysis of Governmental Funds
At December 31, 2016, the City's governmental funds reported combined fund balances of $278,000,684, an increase of
$216,850,004 in comparison with the prior year. Approximately 5.4% of this amount, $15,066,402, constitutes unassigned fund
balance, which is available for spending at the government's discretion. The remainder of the fund balance is either restricted,
committed, or assigned, indicating that, legally, it is required to be maintained intact or used for particular purposes
($257,811,177), it is committed for particular purposes ($3,212,225), or it is assigned for particular purposes ($1,910,880).
Business-type Activities. For the City's business-type activities, the results for the current fiscal year were positive in that
overall net position increased to an ending balance of $112,484,195. The total increase in net position for business-type activities
(water, sewer, storm water, and other) was $903,134 or 0.8% from the prior fiscal year. The increase is mainly attributable to a net
amount of $1,023,982 generated by the new storm water utility.
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows,
and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular,
unassigned fund balance may serve as a useful measure of a government's net resources available for discretionary use, as they
represent the portion of fund balance that has not yet been limited to use for a particular purpose by either an external party, the
City itself, or a group of individuals that has been delegated authority to assign resources for use for particular purposes by the
City's Council.
31,814,317
34,323,770
30,500,000
31,000,000
31,500,000
32,000,000
32,500,000
33,000,000
33,500,000
34,000,000
34,500,000
35,000,000
CITY OF CARMEL
Business-Type Revenues vs. Expenses
Expenses Revenues
Charges for services
84.55%
Capital grants and
contributions
15.07%
Other
0.38%City of Carmel
Business‐Type Activities Income
29
General Fund Budgetary Highlights
The Redevelopment Commission Fund, a major fund, accounts for tax increment revenue, which is restricted for certain economic
development projects. The fund had a $23,544,680 increase in fund balance during the year, due to bond issuance, which put the
overall fund balance at $34,329,628.
The Redevelopment Authority Debt Service Fund, a major fund, had a $1,467,005 increase in fund balance during the current
fiscal year, representing normal variations in the amount of debt service due each year. The ending balance was $18,906,822, all of
which was restricted for debt service.
The fund balance of the City's General Fund increased by $6,968,793 during the year.The reason for the increase was that the City
did not utilize all of its 2016 revenue. There were prospective uses for the revenue, but by the time they were implemented, 2016
was past and the new expenditures were pushed into 2017. Among the expenditures pushed into 2017 were $1 million for salary
adjustments to market level, $2 million for street payment in excess of the normal level, and $3 million for new debt service,
related to bonds issued in 2016.
The General Fund is the chief operating fund of the City. At the end of the current fiscal year, unassigned fund balance of the
General Fund was $15,066,402 while the total fund balance was $16,977,282. As a measure of the General Fund's liquidity, it may
be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund
balance represents 24.4% of total general fund expenditures while total fund balance represents 27.5% of that amount.
The Motor Vehicle Highway (MVH) Fund, a major fund, is the operating fund for the City's Street and Engineering Departments.
It is funded by property taxes along with revenue shared by the State of Indiana, mostly derived from motor fuels taxes. At the end
of the current fiscal year, fund balance of the MVH Fund was $4,018,417, all of which was restricted for the purpose of
constructing and maintaining streets. During the year, fund balance increased $597,462 indicating a budget very nearly balanced,
within approximately 2% of revenues and expenditures.
The Redevelopment Authority Capital Projects Fund, a major fund, had a $290,948 decrease in fund balance during the current
fiscal year, representing progress on construction projects. The ending balance was $1,851,411, all of which was restricted for
capital projects.
Original budget compared to final budget. During the year, there was no need for any significant amendments to increase
Unrestricted net position of the Water Utility at the end of the year was a deficit of $7,891,792; for the Sewer Utility, it was an
excess of $1,727,942; for the Storm Water Utility, it was an excess of $2,195,247; and for the nonmajor funds, it was a deficit of
$42,676. Water Utility net position, before capital contributions and transfers, decreased $3,938,521. The Water Utility deficit and
decrease were due to unusually wet summers in 2015 and 2016, which drove down water sales during the grass-watering season.
Sewer Utility net position, before capital contributions and transfers, decreased $674,483, which is within a normal range.
Unrestricted net position of the Storm Water Utility increased by $1,621,301, due primarily to the beginning of operations of a
new nonmajor utility receiving revenue but not yet incurring commensurate expenses.
the original estimated revenues.
Proprietary Funds. The City's proprietary funds provide the same type of information found in the government-wide financial
statements, but in more detail.
The Bond Bank Project Fund, a major fund, acts as a conduit for borrowing for other City funds. The fund balance of $11,432,539
is restricted for economic development and drainage and other capital assets.
The 2016 Project Fund, a major fund, accounts for $160 million of bond proceeds, which is restricted for certain road projects.
30
The most significant differences between estimated revenues and actual revenues were as follows:
Revenue source
Property tax
Income tax
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Miscellaneous
Township joinder agreements
Total
The revenue excesses and shortfalls in the above revenue sources net to less than 1% and were not considered significant.
The differences by department between estimated expenditures and actual expenditures were as follows:
Department
Clerk-Treasurer
Mayor's Office
City Council
Board of Public Works
Administration
Brookshire Golf Course
Building Operations
City Court
Law Department
Community Services
Personnel/ Human Resources
Information Systems
City Property Maintenance
Public Affairs/ Community Relations
Fire Department
Police Department
Communication Center
Parks Department
Redevelopment Department
Total
Actual expenditures did not exceed final appropriations in any category.
2,951,441
478,469
23,267,230
19,449,462
2,771,324
23,214,455
18,393,077
2,613,538
(16,439,410)$
1,484,676 1,176,059 (308,617)
19,129,943 8,703,599
(163,646)
1,441,815
923,798
657,468
(248,219)
9,320,121
1,547,438
83,374,622$
2,712,710
369,832
Final General Fund Budget Compared to Actual Results
1,087,444
(153,286)
6,270,140
82,626,303$
(1,107,710)
37,687,913$
Estimated
Expenditures
Actual
Expenditures Difference
1,890,958 (189,811)
91,979,133$
3,049,295 (509,820)
471,931 439,567 (32,364)
504,182
2,467,638 (245,072)
793,470
1,047,706$
3,256,138 2,402,639 (853,499)
(198,397)
904,831 561,654 (343,177)
665,892 (127,578)
2,162,160
30,151,095
1,102,223$
1,745,835
753,217
Final Final
3,049,981
748,319$
3,559,115
676,055
(1,587,738)$
1,100,549
(295,288)
(464,375)
Actual
Revenues
36,100,175$
817,760
Final Final
862,140
2,628,884
339,807
(52,775)
(1,056,385)
(157,786)
(322,557)
(138,662)
75,539,723$
(1,032,125)
1,071,983
Estimated
Revenues
1,110,359
2,784,883
2,080,769
3,891,447 2,859,322
Investment earnings, subfund
transactions, and other
Difference
(54,517)$
(141,705)
31,251,644
1,866,872
288,842
1,677,173
(10,426,344)
31
Capital Assets and Debt Administration
Capital Assets
Land
Construction in progress
Buildings
Machinery, equipment,
and vehicles
Infrastructure
Water distribution system
Sewer system
Total
Additional information on the City's capital assets can be found in Note III.C. on pages 58–59 of this report.
At the end of the current fiscal year, the City had total bonded debt outstanding of $772,384,434. Of this amount,
-
-
166,767,112
2015
3,111,319$
Capital assets. The City's investment in capital assets for its governmental and business-type activities as of December 31,
-
165,792,679
2016
2016, amounts to $957,267,415 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
machinery, equipment, vehicles, park facilities, roads, highways, bridges, and the water treatment plant. The total increase in
capital assets for the current fiscal year was 2.10%.
$613,083,067 is debt backed by an unlimited ad valorem property tax levy, $82,105,000 is debt backed by income tax, $5,330,000
is debt backed by tax increment, and $169,313,074 is debt backed by utility revenues. The remainder of the City's long-term
obligations comprises post-employment benefit debt, compensated absences, contract purchases, and capital leases.
256,060,231$
2015
178,752,110$
29,387,049
696,894,805$
22,778,886
Long-term Debt. On May 5, 2016, the City issued, through its local public improvement bond bank, $214,455,000 of its
Multipurpose Bonds, Series 2016. The Bonds were issued in order to acquire capital assets; however, $15,164,000 of the Bonds
were used to refund previously outstanding bonds that were used to acquire capital assets. The City has pledged an unlimited ad
valorem property tax levy. In addition, for $139,872,000 of the bonds, the City has also pledged its future distributions of county
option income tax.
On August 4, 2016, the City issued, through its local public improvement bond bank, $29,720,000 of its Taxable Special Program
Bonds, Series 2016. The City has pledged an unlimited ad valorem property tax levy.
On November 10, 2016, the City issued, through its local public improvement bond bank, $53,735,000 of its Special Program
Bonds Series, 2016 (Waterworks Revenue Bonds). The City has pledged its water utility user fees.
-
681,483,901$
2016
260,372,611$
171,288,808$
22,778,886
292,766,966
-
167,978,923
-
14,536,492
3,111,319$
19,321,443
Governmental Activities Business-type Activities Total
22,881,761
298,195,425
165,792,679
72,619,741
937,544,132$
61,402,665
292,766,966
166,767,112
71,172,737
957,267,415$
167,978,923
42,081,222
174,400,127$
2015
175,640,791$
14,850,557
169,915,367
22,881,761
298,195,425
169,915,367
71,172,737
2016
72,619,741
32
Outstanding Debt
Compensated absences
OPEB
Pension-related debt
Capital leases
Total
Additional information on the City's long-term debt can be found in Note III.D. on pages 59–65 of this report.
Economic Factors and Next Year's Budgets and Rates
Request for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the
government's finances. Questions concerning any of the information provided in this report or requests for additional financial
information should be addressed to the Office of the Clerk-Treasurer, One Civic Square, Carmel, Indiana 46032.
• The City enjoys favorable relationships with employee unions and no history of significant contract disputes.
• The City successfully appealed to the appropriate State of Indiana agency to recover $4,526,216 in property tax revenue that
had been under-billed in past years. The corresponding increase in property tax revenue will affect the distribution formula for
the county-wide income tax, and the City's share will increase, beginning in 2017.
• An increase in water rates beginning in 2016, which will help address the problem described above, in which a wet summer
depresses summer water sales and causes the Water Utility to be unable to cover its expenses.
490,718,835$
200,985
154,361,616$
562,700
38,972,184
645,080,451$
12,920,443
6,836,403
2015
422,916,072$
34,880,609
2015
146,524,502$
593,205
396,863
1,773,512
4,872,549
• The unemployment rate for the City was 3.2% at the close of the fiscal year, which is significantly below the national rate and
also below the rate of other communities nearby.
2016
772,384,434$
1,165,846
15,012,950
7,399,103
57,378,431
34,009,602
• Recent trends have been favorable with regard to increases in taxable assessed value and increases in taxable income.
The City's total debt increased by $253,669,834 (28.22%) during the current fiscal year.
715,685
603,071,360$
2016
The following economic factors currently affect the City and were considered in developing the 2017 fiscal year budget.
City's outstanding debt payable primarily from pledges of property tax levies. Several of the City's outstanding obligations are
payable primarily from non-property tax resources, even though they are subject ultimately to a property tax levy pledge. These
obligations are not subject to the 2% limit, nor are obligations associated with lease-back arrangements.
The City maintains a "AA+" rating from Standard & Poor's on all bonds secured with an ad valorem property tax pledge. The City
has one outstanding 2005 lease bond issue with a property tax pledge that has a split rating: S&P “AA+”/Moody’s “Aa3”. In
November 2017, a proposed bond issuance received a rating of “AA” from Standard & Poor’s.
Bonds and contract
purchases
21,064,939
629,638
9,871,857
30,008,060
2015
569,440,574$
21,658,144
1,026,501
11,645,369
Unamortized bond
premium
714,931,924$
2016
169,313,074$
6,437,337
450,161
2,092,507
4,962,582
Governmental Activities Business-type Activities Total
183,818,361$
6,228,269
63,815,768
898,750,285$
6,429,254
• As explained more fully in Note III.K, in July of 2017, the City issued $7,405,000 of debt to acquire capital assets.
33
Governmental
Activities
Business-Type
Activities Total
Cash and investments 274,672,589$ 35,303,590$ 309,976,179$
Receivables (net of allowances for uncollectibles):
Accounts 604,022 827,668 1,431,690
Taxes 12,537,752 - 12,537,752
Intergovernmental 1,213,133 - 1,213,133
Other - 3,902,402 3,902,402
Internal balances 3,739,684 (3,739,684) -
Inventories - 560,393 560,393
Prepaid expenditures 3,593,554 510,641 4,104,195
Cash, restricted for debt service - 4,299,246 4,299,246
Other - 98,436 98,436
Capital assets:
Not being depreciated: land, improvements, and construction in progress 213,370,030 22,432,762 235,802,791
Other capital assets, net of depreciation 483,524,775 237,939,849 721,464,624
Total assets 993,255,539 302,135,303 1,295,390,842
DEFERRED OUTFLOWS OF RESOURCES:
Bond refunding 19,738,442 - 19,738,442
Pensions 17,381,897 2,046,321 19,428,218
Total deferred outflows of resources 37,120,339 2,046,321 39,166,660
Accounts payable 3,733,731 925,763 4,659,494
Claims payable 1,376,256 - 1,376,256
Accrued payroll and withholdings payable 2,470,504 269,036 2,739,540
Compensated absences 715,685 450,161 1,165,846
Accrued interest payable 8,299,854 651,230 8,951,084
Customer deposits - 44,515 44,515
Rent paid in advance - 62,464 62,464
Other current payables - 77,504 77,504
Noncurrent liabilities:
Due within one year:
Bonds payable 19,058,576 6,024,661 25,083,237
Capital leases payable 1,990,520 175,670 2,166,190
Due in more than one year:
Bonds payable 641,391,215 169,725,751 811,116,966
Capital leases payable 4,845,883 387,029 5,232,912
Net pension liability 34,009,602 4,962,582 38,972,184
Other post-employment benefits 12,920,443 2,092,507 15,012,950
Total liabilities 730,812,269 185,848,873 916,661,142
DEFERRED INFLOWS OF RESOURCES:
Bond refunding 319,329 - 319,329
Pensions 10,450,734 5,848,556 16,299,290
Total deferred inflows of resources 10,770,063 5,848,556 16,618,619
Net investment in capital assets 299,216,267 116,495,474 415,711,741
Restricted:
General government 292,549 - 292,549
Public safety 2,019,492 - 2,019,492
Streets and other infrastructure 12,930,126 - 12,930,126
Economic development 107,889 - 107,889
Culture and recreation 10,005,100 - 10,005,100
Unrestricted (35,777,877) (4,011,279) (39,789,157)
Total net position 288,793,546$ 112,484,195$ 401,277,741$
LIABILITIES:
NET POSITION:
The notes to the financial statements are an integral part of this statement.
Primary Government
City of Carmel, Indiana
STATEMENT OF NET POSITION
December 31, 2016
ASSETS:
34
Expenses
Governmental
Activities
Business-Type
Activities Total
FUNCTIONS/PROGRAMS:
Governmental activities:
General government 30,984,884$ 82,803$ -$ -$ (30,902,081)$ -$ (30,902,081)$
Public safety 40,267,560 1,470,638 112,651 - (38,684,271) - (38,684,271)
Streets and other infrastructure 12,340,719 248,036 - 865,258 (11,227,425) - (11,227,425)
Economic development 54,995,901 - - - (54,995,901) - (54,995,901)
Culture and recreation 10,122,290 11,585,645 - - 1,463,355 - 1,463,355
Unallocated interest expense 5,545,855 - - - (5,545,855) - (5,545,855)
Total governmental activities 154,257,210 13,387,122 112,651 865,258 (139,892,179) - (139,892,179)
Business-type activities:
Water 19,439,437 15,458,695 - 4,620,949 - 640,207 640,207
Sewer 10,016,870 9,303,554 - 552,460 - (160,856) (160,856)
Storm Water 1,651,075 3,222,138 - - - 1,571,063 1,571,063
Other 706,935 1,034,682 - - - 327,747 327,747
Total business-type activities 31,814,317 29,019,069 - 5,173,409 - 2,378,161 2,378,161
TOTAL PRIMARY GOVERNMENT 186,071,527$ 42,406,191$ 112,651$ 6,038,667$ (139,892,179) 2,378,161 (137,514,018)
GENERAL REVENUES AND TRANSFERS:
Property tax 52,989,360 - 52,989,360
Income tax 36,700,613 - 36,700,613
Other taxes 28,850,762 - 28,850,762
Unrestricted investment earnings 442,961 131,292 574,253
Other 16,797,331 - 16,797,331
Transfers 1,606,319 (1,606,319) -
Total general revenues and transfers 137,387,346 (1,475,027) 135,912,319
CHANGE IN NET POSITION (2,504,833) 903,134 (1,601,699)
NET POSITION: beginning 297,911,447 112,063,056 409,974,503
Restatement (6,613,069) (481,995) (7,095,064)
NET POSITION: beginning, adjusted 291,298,378 111,581,061 402,879,439
NET POSITION: ending 288,793,546$ 112,484,195$ 401,277,741$
City of Carmel, Indiana
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended December 31, 2016
The notes to the financial statements are an integral part of this statement.
Net (Expense) Revenue and Changes in Net Position
Charges for
Services
Operating
Grants and
Contributions
Capital Grants
and
Contributions
Program Revenues
35
General FundBond Bank Project FundRedevelopment Commission Fund2016 Project FundRedevelopmentAuthority Debt Service FundRedevelopmentAuthority Capital Projects FundMotor VehicleHighway FundTotal Nonmajor FundsTotalASSETS:22,132,927$ 11,432,539$ 34,424,619$ 142,631,109$ 18,906,822$ 1,851,411$ 4,606,959$ 38,686,203$ 274,672,589$ Receivables:Taxes:Property1,385,315 ---- - 410,169 219,432 2,014,916 Income10,522,836 ---- --- 10,522,836 Accounts274,960 ---- -- 329,062 604,022 Intergovernmental846,933 ---- -- 366,200 1,213,133 Due from other governmental funds21,336 ---- -- 11,530,605 11,551,941 Due from related utility3,684,434 55,250 - 3,739,684 TOTAL ASSETS38,868,741 11,432,539 34,424,619 142,631,109 18,906,822 1,851,411 5,072,378 51,131,502 304,319,121 LIABILITIES:Accounts payable2,055,060 -94,991 -- - 371,185 1,212,495 3,733,731 Claims payable----- -- 1,376,256 1,376,256 Due to other Funds11,530,605 ---- -- 21,336 11,551,941 2,023,608 ---- - 272,607 174,289 2,470,504 Total liabilities15,609,273 -94,991 -- - 643,792 2,784,376 19,132,432 DEFERRED INFLOWS OF RESOURCES:Unavailable revenue6,282,186 ---- - 410,169 493,650 7,186,005 FUND BALANCES:Restricted:General government-40,208 --- -- 292,549 332,757 Public safety----- -- 2,019,492 2,019,492 Highways and streets--- 142,631,109 7,678,040 - 4,018,417 31,520,771 185,848,337 Drainage and other capital assets- 8,568,415 --- -- 695,450 9,263,865 Economic development- 2,823,916 34,329,628 - 6,381,663 1,851,411 - 107,889 45,494,507 Culture and recreation---- 4,847,119 -- 10,005,100 14,852,219 Committed:General government----- -- 2,375,461 2,375,461 Public safety----- -- 510,986 510,986 Highways and streets----- -- 306,644 306,644 Economic development----- -- 19,134 19,134 Assigned:General government1,241,646 ---- --- 1,241,646 Public safety483,333 ---- --- 483,333 Economic development56,104 ---- ---56,104 Culture and recreation129,797 ---- --- 129,797 Unassigned15,066,402 ---- --- 15,066,402 Total fund balances16,977,282 11,432,539 34,329,628 142,631,109 18,906,822 1,851,411 4,018,417 47,853,476 278,000,684 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES38,868,741$ 11,432,539$ 34,424,619$ 142,631,109$ 18,906,822$ 1,851,411$ 5,072,378$ 51,131,502$ 304,319,121$ City of Carmel, IndianaBALANCE SHEETGOVERNMENTAL FUNDSDecember 31, 2016Cash and investmentsAccrued payroll and withholdings payableThe notes to the financial statements are an integral part of this statement.36
Fund Balance - governmental funds 278,000,684$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Prepaid expenditures represent the unamortized cost of bond insurance and similar credit
enhancements and are not financial resources and, therefore, are not reported in the funds.3,593,554
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds:
Land and construction in progress 213,370,030$
Machinery, equipment, and vehicles 631,397,879
Accumulated depreciation (147,873,103) 696,894,805
Certain receivables are not expected to be collected within the time needed to liquidate
expenditures of the current year and therefore are not considered available in the funds:
Property tax 2,014,916$
Income tax 4,397,104
Cable fees 274,960
Ambulance fees 274,218
Supplemental ambulance fees 224,807 7,186,005
Certain pension and other post-employment benefits that are not due and payable in the current
period are not recognized in the funds:
Pension liability (34,009,602)$
Other post-employment benefit liability (12,920,443) (46,930,045)
Deferred inflows and outflows of resources are not financial resources and, therefore, are not
reported in the funds:
Unamortized cost of bond refunding and defeasement 19,738,442$
Unamortized inflows on bond refunding and defeasement (319,329)
Pension-related inflows (10,450,734)
Pension-related outflows 17,381,897 26,350,276
Other noncurrent liabilities are not due and payable in the current period and, therefore, are not
reported in the funds:
Compensated absences 715,685$
Accrued interest payable 8,299,854
Unamortized value of capital leases 6,836,403
Unamortized premiums on bonds outstanding 57,378,431
Unamortized principal on bonds outstanding 603,071,360 (676,301,733)
Net position of governmental activities 288,793,546$
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
December 31, 2016
37
General FundBond Bank Project FundRedevelopment Commission Fund2016 Project FundRedevelopment Authority Debt Service FundRedevelopment Authority Capital Projects FundMotor Vehicle Highway FundTotal Nonmajor Funds TotalREVENUES:Property tax36,100,175$ -$ -$ -$ -$ -$ 10,685,169$ 5,861,719$ 52,647,063$ Income tax35,095,179 - - - - - - 11,530,605 46,625,784 Other local tax3,566,915 - 23,462,664 - - - 1,055,398 765,785 28,850,762 Charges for services926,394 - - - - - - 11,974,974 12,901,368 Investment income157,956 128 44,194 145,029 16,509 6,860 1,310 70,975 442,961 Licenses and permits2,391,602 - - - - - - 50,251 2,441,853 Fines and forfeits504,283 - - - - - - 67,273 571,556 Intergovernmental:Grants- - - - - - - 1,191,485 1,191,485 State shared revenue2,669,771 - - - - - 2,929,747 1,225,523 6,825,041 Fire service contract1,198,398 - - - - - - - 1,198,398 Contributions- - - - - - - 660,714 660,714 Other763,949 508 3,963,526 294,561 (682) 5,530 13,822 817,330 5,858,544 Total revenues83,374,622 636 27,470,384 439,590 15,827 12,390 14,685,446 34,216,634 160,215,529 EXPENDITURES:Current:General government19,525,912 - - - - - - 9,145,004 28,670,916 Public safety35,839,820 - - - - - - 2,707,953 38,547,773 Streets and other infrastructure586,567 - - - - - 12,953,783 - 13,540,350 Economic development320,248 - 4,754,560 - - - - - 5,074,808 Culture and recreation3,438,575 - - - - - - 9,958,799 13,397,374 Debt service:Principal1,480,000 - 1,350,000 - 14,557,515 - - - 17,387,515 Interest237,320 - 2,001,454 - 15,524,297 - - - 17,763,071 Capital outlay:General government171,219 2,671,297 - - 88,844 - - - 2,931,360 Public safety76,796 - - - - - - 1,848,596 1,925,392 Streets and other infrastructure- - - 17,808,481 - 303,338 446,998 6,539,059 25,097,876 Economic development896 - 16,808,875 - - - - - 16,809,771 Culture and recreation160,647 - - - - - - 573,406 734,053 Total expenditures61,838,000 2,671,297 24,914,889 17,808,481 30,170,656 303,338 13,400,781 30,772,817 181,880,259 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES21,536,622 (2,670,661) 2,555,495 (17,368,891) (30,154,829) (290,948) 1,284,665 3,443,817 (21,664,730) Continued on next page.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 201638
General FundBond Bank Project FundRedevelopment Commission Fund2016 Project FundRedevelopment Authority Debt Service FundRedevelopment Authority Capital Projects FundMotor Vehicle Highway FundTotal Nonmajor Funds TotalOTHER FINANCING SOURCES AND (USES):Bond issuance - principal - 198,291,000 - - 974,510 - - - 199,265,510 Bond issuance - premium- 35,087,956 - - - - - - 35,087,956 Proceeds - refunding- 18,170,404 - - - - - - 18,170,404 Proceeds - capital leases- - - - - - - 2,294,226 2,294,226 Payment to refunded bond escrow agent- - - - (17,909,681) - - - (17,909,681) Transfers in, governmental funds- - 38,297,009 160,000,000 48,557,005 - - 31,410,357 278,264,371 Transfer in (out) from (to) enterprise funds609,000 - 400,000 - - - 597,319 - 1,606,319 Transfers out, governmental funds(15,176,829) (237,446,160) (17,707,824) - - - (1,284,522) (6,649,036) (278,264,371) Total other financing sources and uses(14,567,829) 14,103,200 20,989,185 160,000,000 31,621,834 - (687,203) 27,055,547 238,514,734 NET CHANGES IN FUND BALANCES6,968,793 11,432,539 23,544,680 142,631,109 1,467,005 (290,948) 597,462 30,499,364 216,850,004 FUND BALANCES: beginning10,008,489 - 10,784,948 - 17,439,817 2,142,359 3,420,955 17,354,112 61,150,680 FUND BALANCES: ending16,977,282$ 11,432,539$ 34,329,628$ 142,631,109$ 18,906,822$ 1,851,411$ 4,018,417$ 47,853,476$ 278,000,684$ The notes to the financial statements are an integral part of this statement.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016(Continued)39
216,850,004$
Capital outlays 31,439,288$
Depreciation expense (16,028,385)
15,410,902
481,995
Decrease (increase) in bonds payable (180,155,288)$
Amortization of certain bond-related prepaid expense and deferred inflows and outflows (1,655,899)
Amortization of premium on bonds outstanding 1,780,868
Bond issuance premium (38,094,360)
Principal payments on capital leases 1,780,251
Capital lease proceeds (2,294,226)
Compensated absences (86,047) (218,724,701)
Property tax 342,297$
Income tax (9,925,171)
Ambulance fees 115,620
Ambulance fee supplemental (312,741) (9,779,995)
as expenditures in the funds:
1925 Police Officers' plan 60,149$
1937 Firefighters' plan 105,348
1977 Firefighters' plan 365,202
1977 Police Officers' plan 265,747
Civilian public employee retirement plan (1,252,904)
Other post-employment benefits - retiree health insurance (3,048,585) (3,505,043)
(2,948,519)
Cable fees 274,960
Grant revenue (564,436)
Change in net assets of governmental activities (Statement of Activities)(2,504,833)$
Net change in fund balances - total governmental funds, Statement of Revenues, Expenditures, and Changes in Fund
Balances
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in
the funds:
Accrued interest reported in the Statement of Activities does not require the use of current financial resources and,
therefore, is not reported as expenditures in governmental funds.
During 2016, an internal service fund became a special revenue fund. A minority of the services provided were for the
City’s water and sewer utility enterprise funds. The accumulated net internal revenue from these enterprise funds were
accounted for as business activities. However, the special revenue fund transactions are treated entirely as government
functions. Accordingly, an adjustment is needed for the previously-accumulated net enterprise fund transactions.
The notes to the financial statements are an integral part of this statement.
Amounts reported for governmental activities in the Statement of Activities are different because:
Expenses in the Statement of Activities for pension and other post-employment benefits are not recognized
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while
the repayment of the principal of long-term debt consumes the current financial resources of governmental funds.
Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance
costs, premiums, discounts and similar items when debt is first issued; whereas these amounts are deferred and
amortized in the Statement of Activities. The following items reflect these differences in the treatment of long-term debt
and related items:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the cost of those
assets is allocated over their estimated useful lives and recorded as depreciation. Following is the amount by which
capital outlay expenditures exceeded (were less than) depreciation:
City of Carmel, Indiana
RECONCILIATION OF THE STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
For the Fiscal Year Ended December 31, 2016
40
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
ASSETS:
Current assets:
Cash and investments -$ 514,999$ 34,745,606$ 42,985$ 35,303,590$
Accounts receivable (net of allowance)254,746 248,033 324,889 - 827,668
Other receivables 2,274,117 1,628,285 - - 3,902,402
Due from associated utility - 681,338 276,248 - 957,586
Inventories 260,610 299,783 - - 560,393
Prepaid items 186,353 324,288 - - 510,641
Total current assets 2,975,826 3,696,726 35,346,743 42,985 42,062,280
Noncurrent assets:
Restricted cash, debt service 1,522,703 2,776,543 - - 4,299,246
Other 88,829 9,607 - - 98,436
Capital assets:
Land, improvements to land and
construction in progress 12,817,194 4,757,510 4,858,058 - 22,432,762
Utility plant in service, net of depreciation 166,767,112 71,172,737 - - 237,939,849
Total noncurrent assets 181,195,838 78,716,397 4,858,058 - 264,770,293
Total assets 184,171,664 82,413,123 40,204,801 42,985 306,832,573
DEFERRED OUTFLOW OF RESOURCES: pension 1,081,567 964,754 - - 2,046,321
Continued on next page.
December 31, 2016
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
City of Carmel, Indiana
Enterprise Funds
Business-Type Activities - Enterprise Funds
41
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
LIABILITIES:
Current liabilities:
Accounts payable 600,131$ 309,818$ -$ 15,814$ 925,763$
Accrued wages payable 142,905 126,131 - - 269,036
Compensated absences 251,553 198,608 - - 450,161
Due to associated governmental funds 3,284,434 400,000 55,250 - 3,739,684
Due to associated utility 957,586 - - - 957,586
Customer deposits 44,515 - 44,515
Rent paid in advance - - - 62,464 62,464
Revenue bonds payable, current portion 2,877,177 1,254,484 1,893,000 - 6,024,661
Capital leases payable, current portion 51,619 124,051 - - 175,670
Accrued interest payable 557,868 93,362 - - 651,230
Other 70,121 - - 7,383 77,504
Total current liabilities 8,837,909 2,506,454 1,948,250 85,661 13,378,274
Noncurrent liabilities:
Bonds payable 116,430,046 18,584,126 34,711,579 - 169,725,751
Capital leases payable 188,291 198,738 - - 387,029
Retiree health care 1,092,193 1,000,314 - - 2,092,507
Pension liability 2,622,935 2,339,647 - - 4,962,582
Total noncurrent liabilities 120,333,465 22,122,825 34,711,579 - 177,167,869
Total liabilities 129,171,374 24,629,279 36,659,829 85,661 190,546,143
DEFERRED INFLOW OF RESOURCES
Pension 188,892 168,491 - - 357,383
2008 bond call rights waiver 5,491,173 - - - 5,491,173
Total deferred inflow of resources 5,680,065 168,491 - - 5,848,556
NET POSITION:
Net investment in capital assets 58,293,584 56,852,165 1,349,725 - 116,495,474
Unrestricted (7,891,792) 1,727,942 2,195,247 (42,676) (4,011,279)
Total net position 50,401,792$ 58,580,107$ 3,544,972$ (42,676)$ 112,484,195$
PROPRIETARY FUNDS
Business-Type Activities - Enterprise Funds
Enterprise Funds
December 31, 2016
STATEMENT OF NET POSITION
City of Carmel, Indiana
(Continued)
The notes to the financial statements are an integral part of this statement.
42
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
OPERATING REVENUES:
Residential sales 11,428,046$ 4,829,204$ -$ -$ 16,257,250$
Commercial and industrial sales 3,547,978 4,474,350 - - 8,022,328
Stormwater fees - - 3,222,138 - 3,222,138
Rent - - - 1,034,682 1,034,682
Other 482,671 - - - 482,671
Total operating revenues 15,458,695 9,303,554 3,222,138 1,034,682 29,019,069
OPERATING EXPENSES:
Source of supply and expense - operation and maintenance 972,860 - - - 972,860
Water treatment expense - operation and maintenance 3,363,442 - - - 3,363,442
Building maintenance operating expenses - - - 706,935 706,935
Drainage projects - - 1,651,075 - 1,651,075
Transmission and distribution 3,058,003 - - - 3,058,003
Collection system - operations and maintenance - 1,224,401 - - 1,224,401
Pumping - operations and maintenance - 174,656 - - 174,656
Treatment and disposal expense - operation and maintenance - 3,516,245 - - 3,516,245
Customer accounts 683,196 592,355 - - 1,275,551
Administration and general 731,445 1,150,452 - - 1,881,897
Payroll tax expense 245,188 215,511 - - 460,699
Utility receipts tax expense 218,065 - - - 218,065
Depreciation and amortization 4,440,766 2,572,619 - - 7,013,385
Other 71,270 42,333 - - 113,603
Total operating expenses 13,784,235 9,488,572 1,651,075 706,935 25,630,817
OPERATING INCOME (LOSS)1,674,460 (185,018) 1,571,063 327,747 3,388,252
NONOPERATING REVENUES (EXPENSES):
Interest and investment revenue 42,221 38,833 50,238 - 131,292
Miscellaneous revenue 268,741 9,025 - - 277,766
Interest expense (5,993,331) (557,477) - - (6,550,808)
Gain (loss) from disposition of property (19,439) 6,640 - - (12,799)
Other 88,827 13,514 - - 102,341
Total nonoperating revenue (expenses)(5,612,981) (489,465) 50,238 - (6,052,208)
CHANGE IN NET POSITION BEFORE CONTRIBUTIONS (3,938,521) (674,483) 1,621,301 327,747 (2,663,956)
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital contributions 4,620,949 552,460 - - 5,173,409
Transfers to associated city - (609,000) (597,319) (400,000) (1,606,319)
Total capital contributions and transfers 4,620,949 (56,540) (597,319) (400,000) 3,567,090
CHANGE IN NET POSITION 682,428 (731,023) 1,023,982 (72,253) 903,134
TOTAL NET POSITION: beginning 49,719,364 59,311,130 2,520,990 29,577 111,581,061
TOTAL NET POSITION: ending 50,401,792$ 58,580,107$ 3,544,972$ (42,676)$ 112,484,195
Business-Type Activities - Enterprise Funds
Enterprise Funds
The notes to the financial statements are an integral part of this statement.
For the Fiscal Year Ended December 31, 2016
PROPRIETARY FUNDS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
City of Carmel, Indiana
43
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 15,176,212$ 9,706,268$ 3,113,609$ 978,013$ 28,974,102$
Payments for goods and services (3,960,087) (2,019,294) (1,651,075) (715,466) (8,345,922)
Payments to employees (4,844,512) (4,431,753) - - (9,276,265)
Other receipts 551,224 17,695 - - 568,919
Net cash provided (used) by operating activities 6,922,837 3,272,916 1,462,534 262,547 11,920,834
Cash flow provided by associated city 407,284 - - - 407,284
Capital contributions 1,940,211 167,476 - - 2,107,687
Acquisition and construction of capital assets (2,183,881) (1,241,429) (4,858,058) - (8,283,368)
Payment of capital debt (2,690,792) (1,103,498) - - (3,794,290)
Interest paid on debt (4,338,982) (498,288) - - (4,837,270)
Proceeds from sale of equipment - 10,525 - - 10,525
Proceeds from sale of bonds - - 36,604,579 - 36,604,579
Net cash provided by capital
and related financing activities (6,866,160) (2,665,214) 31,746,521 - 22,215,147
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 42,221 38,833 50,238 - 131,292
TRANSFERS TO GOVERNMENTAL FUNDS - (609,000) (622,889) (400,000) (1,631,889)
NET INCREASE IN CASH AND CASH EQUIVALENTS 98,898 37,534 32,636,404 (137,453) 32,635,383
CASH AND CASH EQUIVALENTS: beginning 1,423,806 3,254,008 2,109,203 180,438 6,967,455
CASH AND CASH EQUIVALENTS: ending 1,522,704$ 3,291,542$ 34,745,607$ 42,985$ 39,602,838$
Continued on next page.
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended December 31, 2016
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
City of Carmel, Indiana
Enterprise Funds
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITES:
44
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
RECONCILIATION OF OPERATING INCOME (LOSS) TO
Operating income (loss)1,674,460 (185,018) 1,571,063 327,747 3,388,252
income (loss) to net cash provided (used)
Depreciation expense 4,440,766 2,572,619 - - 7,013,385
Nonoperating income (expense) 268,741 9,026 - - 277,767
(Increase) decrease in assets:
Accounts receivable 368,653 314,123 167,719 838 851,333
Other - - - (57,507) (57,507)
Interfund receivables - 97,260 (276,248) - (178,988)
Inventories (5,878) (39,342) - - (45,220)
Prepaid items (102,514) (208,150) - - (310,664)
Increase (decrease) in liabilities:
Accounts payable 133,694 106,341 - (8,531) 231,504
Wages payable 35,901 26,846 - - 62,747
Compensated absence payable 14,985 38,311 - - 53,296
Retiree health care 170,082 148,913 - - 318,995
Pension 8,811 (8,011) - - 800
Other current liabilities (84,864) 400,000 - - 315,136
Total adjustments 5,248,377 3,457,936 (108,529) (65,200) 8,532,584
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 6,922,837$ 3,272,918 1,462,534$ 262,547$ 11,920,836$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:
Contributions of capital assets and aid in construction 2,680,737$ 384,984$ -$ -$ 3,065,721$
The notes to the financial statements are an integral part of this statement.
Business-Type Activities - Enterprise Funds
Enterprise Funds
For the Fiscal Year Ended December 31, 2016
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
City of Carmel, Indiana
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES:
Adjustments to reconcile operating
by operating activities:
(Continued)
45
Pension Trust
Funds Agency Funds
ASSETS:
Cash and investments $ 178,845 $ 190,229
Receivable from State of Indiana $ 92,700
Total assets 271,545 190,229
LIABILITIES:
Payroll withholdings 92,700 -
Court escrow - 190,229
Total liabilities 92,700 190,229$
NET POSITION: restricted for pensions 178,845$
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2016
46
Pension Trust
Funds
ADDITIONS:
State of Indiana contributions 1,193,886$
Investment income 492
Miscellaneous revenue 3,338
Total additions 1,197,716
DEDUCTIONS:
Benefits to plan members and beneficiaries 1,203,280
Administrative expenses 2,741
Total deductions 1,206,021
NET INCREASE IN NET POSITION (8,305)
NET POSITION: beginning 187,150
NET POSITION: ending - restricted for pensions 178,845$
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended December 31, 2016
47
I. Summary of Significant Accounting Policies
A. Accounting Principles
B. Reporting Entity
C. Basis of Presentation – Government-Wide Statements
The two government-wide financial statements, the Statement of Net Position and the Statement of Activities, report information on
all of the non-fiduciary activities of the City. Governmental activities, which include those activities primarily supported by taxes or
intergovernmental revenue, are reported separately from business-type activities, which generally rely on fees and charges for
support. While separate government-wide and fund financial statements are presented, they are interrelated. The governmental
activities column incorporates data from governmental funds, while business-type activities incorporate data from the government's
enterprise funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even
though the latter are excluded from the government-wide financial statements.
The Statement of Activities demonstrates the extent to which the direct expenses of a functional category are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. They
also include operating and capital grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function. Taxes and other items properly excluded from program revenues are reported as general revenue.
The accounting policies of the City of Carmel, Indiana (City) applied to the accompanying financial statements for the year ended
December 31, 2016, conform to the accounting principles generally accepted in the United States of America (GAAP) for local
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. A summary of the City's significant accounting policies employed in the
preparation of the accompanying financial statements follows.
The City of Carmel (City) is a municipal corporation governed by an elected mayor as executive, an elected clerk-treasurer as fiscal
officer, and a seven-member council as legislative and fiscal body. It is the primary general government reporting entity. The
accompanying financial statements present the government and its blended component units, entities for which the government is
considered to be financially accountable. Blended component units are, in substance, part of the primary government's operations,
even though they are legally separate entities. Thus, blended component units are appropriately presented as funds of the primary
government.
There are three blended component units. The Carmel Redevelopment Authority is a conduit to facilitate long-term financing of
certain City capital projects. City officials appoint its board and the City is ultimately liable for all its debt. It is included as a blended
component unit because its board is appointed by City officials and it provides a financial benefit to the City, though the City does not
have fiduciary responsibility for it. The Carmel City Center Community Development Corporation (4CDC) is a legally separate not-
for-profit corporation that primarily supports the economic development efforts of City government. Accordingly, it benefits almost
exclusively the primary government. It is included as a blended component unit because its board is appointed by City officials and it
provides a financial benefit to the City, although City officials cannot compel board members to act and the City does not have a
fiduciary responsibility for it. The Carmel Redevelopment Authority and 4CDC do not issue separate financial statements. The City
of Carmel Local Public Improvement Bond Bank (The Carmel Bond Bank) is an instrumentality of the City and serves as a
mechanism for City agencies to combine their individual debt issuances into larger issuances in order to reduce costs and obtain
better terms. Its board is appointed by City officials, and the City is liable for all of its debt. The Carmel Bond Bank issues separate
financial statements, which may be obtained at Carmel City Hall, Third Floor, One Civic Square, Carmel, Indiana 46032.
City of Carmel
NOTES TO BASIC FINANCIAL STATEMENTS
For the Fiscal Year Ended December 31, 2016
48
D. Basis of Presentation – Fund Financial Statements
The government also reports certain other funds:
The Redevelopment Authority Debt Service Fund is used to account for the accumulation of resources that are restricted, committed,
or assigned for the payment of principal and interest on certain long-term obligations of governmental funds.
The Motor Vehicle Highway Fund is used to account for gasoline tax and other revenue collected by the State of Indiana and shared
with the City for the purpose of maintaining streets and other infrastructure.
The Water Utility, Sewer Utility, and Storm Water Utility Funds are enterprise funds and account for the activities of the City
utilities, an integral part of the government. The City operates the water distribution, sanitary sewer systems, and storm water
drainage for residents and certain non-residents.
During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding
at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund
financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between
the funds included in governmental activities (i.e., the governmental funds) are eliminated, so that only the net amount is included as
internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities
(i.e., the enterprise funds) are eliminated, so that only the net amount is included as internal balances in the business-type activities
column.
The fund financial statements provide information about the government's funds, including its fiduciary funds and blended
component units. Separate statements for each fund category–governmental, proprietary, and fiduciary–are presented. The emphasis
of fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. All remaining
governmental and enterprise funds are aggregated and reported as nonmajor funds. Major individual governmental and enterprise
funds are reported as separate columns in the fund financial statements.
The General Fund is the government's primary operating fund. It accounts for all financial resources of the general government,
except those accounted for in the funds described below.
The Redevelopment Commission Fund is used to account for the collection and expenditure of tax increment financing revenue and
certain other economic development activities.
The government reports the following major governmental funds:
The government reports the following major proprietary funds:
Trust funds account for the activities of certain pension plans administered by the City.
Agency funds account for payroll tax withholdings and municipal court escrows.
The Bond Bank Project Fund is used to account for the proceeds of bond issuances that have been aggregated through the City's local
public improvement bond bank, established in accordance with Indiana law. Generally, proceeds not needed for issuance costs and
required reserves are transferred to other funds to be used to acquire capital assets.
The 2016 Project Fund is used to account for the expenditure of proceeds of a certain 2016 bond issuance, the purpose of which was
to finance street improvement and construction.
The government also reports nonmajor funds, which are of four types: special revenue funds account for and report the proceeds of
specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital
projects; capital projects funds account for revenues normally restricted, committed, or assigned to expenditure for capital outlays,
including the acquisition or construction of capital facilities and other capital assets; debt service funds account for and report
financial resources that are restricted, committed, or assigned to expenditure for principal and interest; and enterprise funds account
for activities funded primarily from user charges.
The Redevelopment Authority Capital Projects Fund is used to account for capital projects undertaken by the City with financing
provided by the Authority.
49
E. Measurement Focus and Basis of Accounting
F. Reconciliation of Government-Wide and Fund Financial Statements
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash and Cash Equivalents
A reconciliation of the difference between changes in fund balances, as reflected on the governmental funds Statement of Revenues,
Expenditures, and Changes in Fund Balances, and change in net position for governmental activities as shown on the government-
wide Statement of Activities, is presented in an accompanying schedule to the governmental funds Statement of Revenues,
Expenditures, and Changes in Fund Balances. The revenue and expense elements that comprise the reconciliation difference stem
from governmental funds using the current financial resources measurement focus and the modified accrual basis of accounting,
while the government-wide financial statements use the economic resources measurements focus and the accrual basis of accounting.
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, certificates of deposit, and securities
backed by the full faith and credit of the United States Government.
The proprietary and pension funds are reported using the economic resources measurement focus and the accrual basis of
accounting. The agency funds have no measurement focus, but utilize the accrual basis of accounting for reporting assets and
liabilities.
Property taxes and income taxes are considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Certain service charges are recognized when the service is performed. Entitlements are recognized as revenues when all
eligibility requirements are met, including any time requirements. Expenditure-driven grants are recognized when the qualifying
expenditures have been incurred and all other eligibility requirements have been met. In all instances, revenues are recognized in
governmental funds only when the amount is received during the period or within the availability period (within 60 days of year end).
All other revenue is recognized only when cash is received.
The governmental fund financial statements are reported using the current financial resources measurement focus and the modified
accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to
be available when they are collectible within the current period, or soon enough thereafter to pay liabilities of the current period. For
this purpose, the government considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences, and claims and judgements, are recorded only when payment
is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuance of long-term debt and
acquisitions under capital leases are reported as other financing sources.
The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of
accounting. Revenues are recorded when earned, and expenses are recorded when a liability is incurred, regardless of the timing of
related cash flows. Property taxes are recognized in the year for which they are levied. Grants and similar items are recognized as
revenues as soon as all eligibility requirements imposed by the provider have been met.
The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting.
Measurement focus indicates the type of resources being measured, such as current financial resources or economic resources. The
basis of accounting indicates the timing of transactions or events for recognition in the financial statements.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these
amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made
in the preparation of the government-wide financial statements. Transfers between the funds included in the governmental activities
column are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances
between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the
business-type activities column.
50
Investments are reported at fair value.
2. Inventories and Prepaid Items
3. Capital Assets
The capitalization threshold below is determined by the asset class.
a) Land is capitalized regardless of the value or cost;
Buildings 20–100 years
Improvements Other than Buildings 10–20 years
Machinery, Equipment, and Vehicles 5–20 years
Infrastructure 20–50 years
4. Compensated Absences
5. Bond Premiums and Discounts
Bond premiums and discounts are amortized in the government-wide and proprietary statements on a straight-line basis over the life
of the issues.
The government's policy permits employees to accumulate earned but unused personal time, which is eligible for payment upon
separation from government service. The liability for such leave is reported as incurred in the government-wide and proprietary fund
financial statements. A liability for those amounts is recorded in the governmental funds only if the liability has matured as a result of
employee resignations or retirements.
Depreciation is recorded on each class of depreciable property using the straight-line method over the estimated useful lives of the
assets. Estimated useful lives are as follows:
The costs of normal maintenance and repairs that do not add to the value of the capital asset or materially extend capital assets' lives
are not capitalized. Major improvements are capitalized and depreciated over the remaining useful lives of the related capital assets.
Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at
the acquisition value at the date of donation.
Under GASB Statement No. 34, all capital assets, whether owned by governmental activities or business-type activities, are recorded
and depreciated in the government-wide financial statements. No long-term capital assets or depreciation are shown in the
governmental funds financial statements.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both the
government-wide and fund financial statements. The cost of prepaid items is recorded as expenditures/expenses when consumed
rather than when purchased.
Inventories are valued at cost using the first-in/first-out (FIFO) method and consist of expendable supplies. The cost of such
inventories is recorded as expenditures/expenses when consumed rather than when purchased.
A full year of depreciation is taken in the year of acquisition for capital assets employed in governmental activities, and depreciation
is deferred to the year after acquisition for those employed in business-type activities.
b) Buildings, infrastructure, vehicles, machinery, and equipment must be capitalized when the useful life is at least 1 year and the
cost is $5,000 or more for assets employed in governmental activities and $750 in business-type activities.
51
6. Deferred Outflows/Inflows of Resources
7. Net Position Flow Assumption
8. Fund Balance Flow Assumptions
9. Fund Balance/Net Position
a) Non-spendable fund balance (inherently non-spendable) include the:
• Portion of net resources that cannot be spent because of their form.
• Portion of net resources that cannot be spent because they must be maintained intact.
Fund balance is presented on the Balance Sheet for governmental funds. The components of fund balance include the following line
items: a) non-spendable fund balance, b) restricted fund balance, c) committed fund balance, d) assigned fund balance, and e)
unassigned fund balance. For further explanation of each fund balance component, please see the following:
Net position is presented on the Statement of Net Position. Net position represents the difference between (a) assets and deferred
outflows of resources and (b) liabilities and deferred inflows of resources. Net investment in capital assets consists of capital assets,
net of accumulated depreciation, reduced by the outstanding balances of any debt related to the acquisition, construction, or
improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition,
construction, or improvement of these assets or related debt are also included in this component of net position. Net position is
reported as restricted when there are limitations imposed on its use, either through enabling legislation adopted by the City or through
external restrictions imposed by creditors, grantors, laws, or regulations of other governments.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of
committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and
unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the
resources are considered to be applied. It is the government's policy to consider restricted fund balance to have been depleted before
using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for
the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied
last.
Sometimes the government will fund outlays for a particular purpose from both restricted (e.g., restricted bond or grant proceeds) and
unrestricted resources. In order to calculate the amounts to report as restricted–net position in the government-wide and proprietary
fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is
the government's policy to consider restricted net position to have been depleted before unrestricted net position is applied.
In addition to liabilities, the Statement of Net Position reports a separate section for deferred inflows of resources. This separate
financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. The items that qualify for reporting in this category are credits resulting from bond
refunding and pension-related credits arising from changes in actuarial assumptions and timing differences.
Debt issuance costs, except for any portion related to insurance costs or other credit enhancements that tend similarly to affect interest
rates in future periods, are recognized as an expense of the current period. These credit enhancement costs are amortized on a straight-
line basis over the term of the related debt.
In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources,represents a consumption of net position that applies to a future period(s)
and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government only has two items
reported on the government-wide statement of net position that qualify for reporting in this category. One is the deferred charge on
refunding. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition
price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other is certain
pension-related debits, arising from changes in actuarial assumptions and timing differences.
52
b) Restricted fund balance (externally enforceable limitations on use) include amounts subject to:
• Limitations imposed by creditors, grantors, contributors, or laws and regulations of other governments.
• Limitations imposed by law through constitutional provision or enabling legislation.
c) Committed fund balance (self-imposed limitations set in place prior to the end of the period):
d) Assigned fund balance (limitation resulting from intended use) consists of amounts where the:
• Intended use is established by the body designated for that purpose (City Council).
e) Unassigned fund balance (residual net resources) is the:
10. Use of Estimates
11. Restricted Net Position
H. Revenues and Expenditures/Expenses
1. Program Revenues
2. Property Taxes
The Council is empowered to adopt property tax levies and rates, subject to certain statutory limitations. Taxable property becomes
subject to lien on January 1 of the year prior to the budget/levy year. Levy ordinances must be adopted before the following
November 1. Property taxes are due in two installments the following May 10 and November 10. The county government collects the
taxes and distributes them, generally, in two installments, June 30 and December 31 of the budget/levy year. The county may make
advances as taxes are collected.
Amounts reported as program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting
the operational or capital requirements of a particular function or segment. All taxes, including those dedicated for specific purposes,
and other internally dedicated resources are reported as general revenues rather than as program revenues.
• Limitation imposed at the highest level of decision-making that requires formal action (passage of an
ordinance) at the same level to remove. For the City, the City Council is the highest level of decision-making
authority.
• Intended use is established by an official authorized by the Council to make purchases, which includes the
heads of most departments.
• Total fund balance in the General Fund is the excess over non-spendable, restricted, committed, and assigned
fund balance.
• Negative unassigned fund balance is the excess over non-spendable, restricted, and committed fund balance
over total fund balance.
The preparation of the basic financial statements in conformity with GAAP requires the City's management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of
the basic financial statements and/or the reported amounts of revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates, but the City believes that the differences will be insignificant. Among the items subject to
estimates are pension liabilities and certain receivables.
All net position reported as restricted in the accompanying Statement of Net Position is restricted due to legally enforceable
contractual obligations or Indiana law.
53
3. Income Taxes
4. Proprietary Funds Operating and Nonoperation Revenues and Expenses
II. Negative Net Position
III. Detailed Notes on Certain Activities and Funds
A. Cash and Cash Equivalents
Deposits
Custodial credit risk for bank deposits is the risk that, in the event of a bank failure, the City's deposits may not be returned to it. The
City's policy for bank deposit custodial credit risk requires compliance with Indiana law.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally
result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing
operations. The principal operating revenues of the water, sewer, and storm water utility funds, and nonmajor enterprise funds are
charges to customers for sales, services, premiums, and rents. The Water Fund also recognizes as operating revenue the portion of tap
fees intended to recover the cost of connecting new customers to the system. Operating expenses for enterprise funds include the cost
of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this
definition are reported as nonoperating revenues and expenses.
The City benefits from an income tax that was imposed by joint vote of several Hamilton County units of general government and
collected by the State of Indiana. Each July 1, the Indiana Department of Revenue determines the amount of tax processed on returns
filed for the previous year. That amount is certified to the County Auditor. It is distributed to the County Auditor on a pro-rata basis,
monthly, during the ensuing calendar year. The distributions are paid from accumulated collections from withholdings and direct
taxpayer payments held in trust by the Indiana Department of Revenue, which may result in a balance remaining in the trust account.
The County Auditor allocates the distributions to the City and other units of general government in accordance with a statutory
formula based on the size of each unit's non-debt property tax levy. Each December 31, the Indiana Department of Revenue
determines if any accumulated balance held in trust exceeds fifteen percent (15%) of the certified distributions to be made to the
county in the determination year, two years prior. If so, the excess is distributed to the County Auditor in May of the ensuing year.
These supplemental distributions are allocated immediately to the City and other units of general government in accordance with the
same statutory formula as for regular distributions. The City accounts for income tax revenue as a derived tax revenue. Accordingly,
revenue is recognized in the Statement of Activities when a taxpayer earns income. In the governmental funds, amounts certified for
and distributed in the current year are recognized as revenue, along with any additional amount in the trust fund that is expected to be
distributed within 60 days.
Taxable property is assessed at estimated market value (determined in accordance with rules and regulations adopted by the Indiana
Department of Local Government Finance). Some taxpayers are eligible for certain deductions and credits. All property taxes
outstanding at year end are recorded as receivable with an offset to deferred inflows of resources—unavailable revenue for amounts
that are not available in the current period.
Deposits of Indiana local government units are regulated by Indiana law. Deposits may be made only in financial institutions
determined eligible by a State agency.
The Carmel City Center Community Development Corporation (4CDC) Fund, a nonmajor enterprise fund, had a negative net position
of $42,676 as of December 31, 2016. The negative position occurred because 4CDC honored a commitment to grant $400,000 to the
Carmel Redevelopment Commission, even though 4CDC’s resources were inadequate on an accrual basis. The grant is shown in the
financial statements as a transfer of $400,000 from 4CDC to the Carmel Redevelopment Commission Fund, a major fund. In the
future, 4CDC intends to eliminate the negative fund balance by reducing such grants to $300,000 per year.
54
Investments
It is the policy of the City to invest public funds for terms up to five years.
Investment Type
United States Treasury notes
U.S. Gov't Money Market Funds
Total
Corporation. Any cash deposits in excess of $250,000 are insured by the Indiana Public Deposits Insurance Fund (Fund) via the
pledged collateral from the institutions securing deposits of public funds. The Fund is a multiple financial institution collateral pool
administered by the State of Indiana.
Investment Maturities (in Years)
More than 5
-$
-
-$
1 to 5
6,583,811$
-
6,583,811$
Less than 1
23,660,762$
20,900
Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in interest rates. The City has no
formal policy regarding interest rate risk. Beginning in 2014, the City may invest in securities for more than two years and not more
than five years in accordance with Indiana law. Under this policy, investments having maturities of more than two years are limited to
25% of the total portfolio. Below is a segmented time distribution for the City's debt investments at December 31, 2016:
Investments of Indiana local government units are regulated by Indiana law. The City may invest in United States obligations and
issues of federal agencies, certain Indiana municipal securities, secured repurchase agreements fully collateralized by U.S. Treasury
or U.S. agency obligations, certificates of deposit, and certain money market mutual funds invested in U.S. Treasury or U.S. agency
obligations.
The City's total cash deposits at December 31, 2016, were $314,275,425, of which $4,299,246 is restricted and $309,976,179 is
unrestricted. The City's cash deposits are insured up to $250,000 at financial institutions insured by the Federal Deposit Insurance
30,244,573$
20,900
30,265,473$
Custodial credit risk for investments is the risk that, in the event of failure of the counterparty to the transaction, the City will not be
able to recover the value of investment or collateral securities that are in possession of an outside party. The City does not have a
formal investment policy for custodial credit risk for investments. The City believes it is not exposed to investment custodial credit
risk because its securities are held in trust in the City's name.
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. The City's policy regarding
credit risk is to comply with Indiana law, which limits the City to very low-risk investments.
23,681,662$
Fair Value
The City has no deposits or investments denominated in foreign currencies and does not foresee having any foreign currency risk in
the future.
Concentration risk is the risk that too many resources have been invested in a single issuer, and that issuer may fail. The City believes
it is not exposed to concentration risk because fewer than 5% of its investments are in a single issuer, other than the United States
Government and its agencies.
55
B. Receivables and Transfers
1. Receivables
Revenue Source
Property taxes
Income taxes
Other
Intergovernmental
Due from other funds
Due from utility
Total
Revenue Source
Accounts and other
Due from utility
Total
Governmental Funds:
Description
Property taxes
Income taxes
Ambulance fees
Township joinder payments
Intergovernmental
Total unavailable revenue
3,739,684
11,551,941
1,385,315$
10,522,836
274,960
846,933
21,336
3,684,434
16,735,814$
Highway
410,169$
-
-
-
-
55,250
465,419$
Vehicle
Motor
Nonmajor
219,432$
-
329,062
366,200
11,530,605
-
12,445,299$
General
1,213,133
29,646,532$
Governmental funds report deferred inflows in connection with receivables for revenues that are not considered to be available to
liquidate liabilities of the current period. At the end of the fiscal year, the various components of unavailable revenue reported in
governmental funds were as follows:
Receivables at December 31, 2016, for business-type activities of the City's individual major enterprise funds, in the aggregate,
consisted of the following:
Receivables at December 31, 2016, for governmental activities of the City's individual major governmental funds and nonmajor
governmental funds, in the aggregate, consisted of the following:
2,014,916$
Total
1,876,318$
4,397,104
274,218
274,960
7,186,005$
Unavailable
Revenue
Water
- 681,338 276,248 957,586
2,528,863$ 2,557,656$ 601,137$ 5,687,656$
224,807
604,022
10,522,836
Utility
2,528,863$
Sewer
Utility
Storm Water
Utility
324,889$
Total
4,730,070$
2,014,916$
56
2. Transfers
a) Transfers among Governmental Funds
Transfers out
General
Bond Bank
RDC
MVH
Nonmajor
Total
b) Transfers between Governmental and Enterprise Funds
Redevelopment
From (to):
(609,000)$
(997,319)
(1,606,319)$
Commission
21,239,470
1,284,522
680,727
31,410,357$
17,909,681
15,176,829$
237,446,160
17,707,824
1,284,522
6,649,036
MVH
-$
(597,319)
(597,319)$
Total
160,000,000$ 48,557,005$ 278,264,371$
General
160,000,000
The Sewer Fund transferred $609,000 to the General Fund to compensate for administrative costs.
The Bond Bank issued debt and transferred proceeds to the Redevelopment Commission in the amount of $38,297,009, the 2016
Projects Fund in the amount of $160,000,000, the Redevelopment Authority in the amount of $17,909,681, and to nonmajor funds in
the amount of $21,239,470.
The General Fund, the Redevelopment Commission, and nonmajor funds made lease payments to the Redevelopment Authority in the
amounts of $6,971,191, $17,707,824, and $5,968,309, respectively, in order to satisfy debt service payments.
The General Fund, the Motor Vehicle Highway Fund, and nonmajor funds made transfers to a nonmajor fund in the amounts of
$7,305,638, $1,284,522, and $680,727, respectively, to cover cash flow.
The General Fund transferred $900,000 to a nonmajor fund to be used for grants to not-for-profit arts organizations.
(400,000)
(609,000)$
-
-$
Nonmajor enterprise funds transferred $400,000 to the Redevelopment Commission as a grant and $597,319 to the Motor Vehicle
Highway Fund to cover costs incurred.
-
- -
Sewer Fund
Storm Water Fund
-$
38,297,009
-
-
38,297,009$
Total (609,000)$
5,968,309
17,707,824 - -
6,971,191$ 8,205,638$
(997,319)$
Transfers In
Transfers In (Out)
-
-
Redevelopment
Commission 2016 Projects
RDA Debt
Service Nonmajor Total
57
C. Capital Assets
Governmental Activities:
Capital assets, not being depreciated
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation, for
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Business-Type Activities:
Capital assets, not being depreciated:
Land & land rights
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Utility plant & equipment in service
Total capital assets, being depreciated
Less accumulated depreciation for
Utility plant & equipment in service
Total capital assets, being depreciated, net
Business-type activities capital assets, net
27,230,665
256,060,231$ 11,783,027$ (7,470,647)$ 260,372,611$
238,412,420 4,730,374 (5,202,945) 237,939,849
Balance Additions/ Deletions/ Balance
Dec 31, 2015 Transfers In Transfers Out Dec 31, 2016
Balance Additions/
8,562,757
(407,419) 147,873,103
21,251,603 4,103,880
71,554,009 7,013,385 - 78,567,394
309,966,429 11,743,759 (5,202,945) 316,507,243
309,966,429 11,743,759 (5,202,945) 316,507,243
17,647,811 7,052,653 (2,267,702) 22,432,762
3,111,319$
7,052,653 (2,267,702) 19,321,443
-$ -$ 3,111,319$
14,536,492
- 42,081,222
2,883,159$ (7,235,142)$ 171,288,808$
Capital asset activity for Business-Type Activities for the year ended December 31, 2016, was as follows:
Dec 31, 2015 Transfers In Transfers Out Dec 31, 2016
490,992,553 (7,465,628) (2,151) 483,524,775
14,850,557
175,640,791$
190,491,349 30,113,823 (7,235,142)
631,397,878
681,483,901$ 22,648,195$ (7,237,293)$ 696,894,805$
191,166,970 2,167,436
25,355,483
17,154,975 2,817,214 (407,419) 19,564,770
213,370,030
Capital asset activity for Governmental Activities for the year ended December 31, 2016, was as follows:
- 193,334,406
40,036,736 2,716,489 (409,570) 42,343,655
93,845,560 9,107,291 - 102,952,851
132,252,138 16,028,385
-
Deletions/ Balance
392,040,985 3,678,832 - 395,719,817
623,244,691 (409,570)
58
Governmental Activities:
General Government
Economic Development
Culture & Recreation
Public Safety
Streets and other infrastructure
Total governmental depreciation
Business-Type Activities:
Utility plant & equipment in service
Total business-type depreciation
Total depreciation
D. Noncurrent Liabilities
1. Changes in Long-Term Debt Obligations and Other Liabilities
The following is a summary of changes in long-term obligations for the year ended December 31, 2016:
Governmental Activities:
Bonds and contract purchases
Unamortized bond premium
Capital leases
Subtotal
Compensated absences
Less, current portion
Portion of capital leases payable due in more than one year
Bonds payable due in more than one year
715,685 (684,287)
(38,519,628)$
629,638
450,821,055$
214,429,509$
21,764,781$
Balance
One Year
19,058,576$
715,685
668,001,879
Balance Due Within
Jan 1, 2016
422,916,072$
Additions
Depreciation expense was charged as follows for the year ended December 31, 2016:
185,437$
Depreciation
Expense
-
4,676,205
1,380,692
9,786,051
16,028,385
7,013,385
7,013,385
23,041,770$
21,064,939 38,094,360 (1,780,869) 57,378,431 -
450,191,417 254,818,096 (37,835,341) 667,286,194 21,049,096
Reductions
(34,274,221)$
6,210,406 2,294,226 (1,780,251) 6,836,403 1,990,520
770,334
255,588,430$
Portion of above due in one year
Liabilities other than debt, which are ordinarily employment related, such as compensated absences, pensions, and
other post-employment benefits, have been liquidated in prior years by the same governmental funds that expended
the regular compensation to the affected employees. When liabilities have arisen, other than debt, which were not
related to compensation, the liabilities have ordinarily been liquidated by the governmental funds that financed the
activities that gave rise to the liabilities.
Total bonds, contract purchases,
capital leases, and compensated
absences
21,764,781
26,610,664
641,391,215$
4,845,883
Dec 31, 2016
603,071,360$
59
Business-Type Activities:
Sewer utility revenue bonds
Water utility revenue bonds
Water utility other long-term debt
Storm water utility bond
Total business-type bonds
Sewer utility bond premium
Sewer utility bond discount
Water utility bond premium
Storm water utility bond premium
Utility capital leases
Compensated absences
Portion of above due in one year
Portion of capital leases payable due in more than one year
Bonds payable due in more than one year
Less,
- 30,720,000 -
(79,059)
(14,905)
1,391
-
(7,485,000)
(1,025,702)
(1,225,303)$
6,024,661
The City administration believes it is in compliance with Federal arbitrage regulations, which apply to bonded debt, and that the
City's liability, if any, under these regulations, is not material.
450,161
1,795,000
1,082,177
1,254,484$
175,670
176,763,272
49,886
(17,850)
450,161
105,749,224
13,037,276
520,722
19,806,574$
562,700
396,865
111,429,647
14,062,978
547,656
147,715,558$
21,031,877$
200,985
64,791
(19,241)
5,884,579
6,650,492
387,030
169,725,750$
(9,776,453) 175,750,411
-$
-
440,774
-
53,296
30,720,000 1,893,000
Balance Due Within
Jan 1, 2016 Additions Reductions Dec 31, 2016
5,884,579 -
Subtotal, bonds, premiums, and
discounts
146,524,502 32,524,577 (9,736,005) 169,313,074
-
-
38,903,226$
6,024,661
1,804,577
(26,934)
Total business-type activities long-
term liabilities
Balance
One Year
147,117,708 38,409,156
6,650,492$ (9,855,512)$
-
60
Governmental Activities Long-Term Debt:
2011 2024 25,190,000$
1,394,000
Original
Amount Outstanding
AmountYear of
Issue
Year of
Maturity
5.800%-
8.450%
Interest Rate
Lease Rental Revenue
Refunding Bonds of 2011
Lease Rental Revenue
Bonds of 2005 (unrefunded
portion)
Lease Rental Revenue
Refunding Bonds, Series
2014
Redevelopment District
Bonds of 2013
Lease Rental Revenue
Multipurpose Bonds, Series
2012A
Lease Rental Revenue
Multipurpose Bonds, Series
2012B
2014 2027
2013 2035
2016 2036
1,373,000 1,373,000
General Obligation Bonds,
Series 2016E
2.000%-
5.000%2016 2036 1,599,000 1,599,000
General Obligation Bonds,
Series 2016F
2.000%-
5.000%2016 2036 1,577,000 1,577,000
2.000%-
5.000%
Bonds issued in order to acquire capital assets, for which the City has pledged an
unlimited ad valorem property tax levy to satisfy the principal and interest on the
bonds as they become due:
1,577,000
General Obligation Bonds,
Series 2016G
2.000%-
5.000%2016 2036 1,373,000
2016 2036
General Obligation Bonds,
Series 2016H
General Obligation Bonds,
Series 2016L
2005 2026
55,685,000
6,535,000
19,649,150*
55,685,000
6,535,000
2.250%-
5.000%
2.000%-
4.000%
1,383,000
1,426,000 1,426,000
1,211,000 1,211,000
1,373,000
2016 2036 1,383,000
General Obligation Bonds,
Series 2016M
2.000%-
5.000%2016 2036
2.000%-
5.000%2016 2036
Gerernal Obligation Bonds,
Series 2016J
2.000%-
5.000%2016 2036 1,513,000 1,513,000
General Obligation Bonds,
Series 2016K
2.000%-
5.000%2016 2036 1,394,000
2.000%-
5.000%
115,900,000
69,245,000
17,495,000$
115,900,000
57,855,000
5.000%
2.625%-
4.000%
1.190%-
3.000%
1,633,000 1,633,000
General Obligation Bonds,
Series 2016D
2.000%-
5.000%2016 2036
1,577,000
General Obligation Bonds,
Series 2016I
2012 2038
2012 2025
37,978,067
General Obligation Bonds,
Series 2016A
2.000%-
5.000%2016 2036 1,214,000 1,214,000
General Obligation Bonds,
Series 2016B
2.000%-
5.000%2016 2036 1,089,000 1,089,000
General Obligation Bonds,
Series 2016C
2.000%-
5.000%
61
* Original amount of capital appreciation bond represents the original purchase price.
** City has additonally pledged county option income tax (COIT).
In the year ended December 31, 2016, the total of payments on the bonds listed above was 0.290% of taxable assessed value.
* Original amount refers to the original amount of the non-refunded portion only of any partially refunded bonds.
46,795,000
25,675,000
9,865,000*
3.000%-
4.000%
3.000%-
5.000%
2018 9,380,000 3,705,000
3.500%-
5.000%
4.500%
COIT Lease Rental Revenue
Refunding Bond, Series
2014A
COIT Lease Rental Revenue
Refunding Bond, Series
2014B
COIT Lease Rental Revenue
Bonds of 2010
COIT Lease Rental Revenue
Refunding Bond, Series
2006 NW Clay (unrefunded
portion)
COIT Refunding Bonds of
2011
COIT Lease Rental Revenue
Refunding Bonds, Series
2006 City Center
29,720,000
Year of Year of Original Amount
Interest Rate Issue Maturity Amount Outstanding
In the year ended December 31, 2016, the total of payments on the bonds listed immediately above was 32.1% of annual
county option income tax revenue.
2006 2018
45,885,000
24,725,000
1.576%-
3.762%2016 2041 29,720,000
Lease Rental Bonds, Series
2016C (Energy Center
Project)
5.270%
1,740,000
10,337,000
2011 2022 7,180,000
8,785,000
Taxable Special Program
Bonds, Series 2016
Bonds issued in order to acquire capital assets, for which the City has pledged its
county option income tax (COIT) revenue up to the amount needed to satisfy the
principal and interest on the bonds as they become due:
4,255,000 2.320%
2014
2006 2017
2029
139,872,000**
2.000%-
5.000%2016 2035 15,164,000 15,164,000
10,337,000
2014 2027
2010 2031
1,795,000
Lease Rental Bonds, Series
2016A (Public Infrastructure
Projects)
2.000%-
5.000%2016 2036 139,872,000
Lease Rental Bonds, Series
2016B (Economic
Development Projects)
2.000%-
5.000%2016
62
Loft A Private Placement 2011
Secondary Village 2011
Capital Leases
Compensated Absences
Bond premium
Business-type activities long-term debt:
Bond Premium/ Discount
Total bonded debt, including amount due in one year
Total business-type activities bonds, capital leases, and compensated absences.
Total City bonds, capital leases, and compensated absences.
Storm Water Utility Bond
(Authorized: $44,500,000)
LIBOR
LIBOR
2029
2011
Capital Leases
57,378,431
844,765,151$
Water Utility Junior
Waterwork Revenue Bond
Bonds issued in order to acquire capital assets, for which the City has pledged its
sewer or water user fee revenue up to the amount needed to satisfy the principal
and interest on the bonds for the term of the bonds:
450,161
6,836,403
715,685
668,001,879$
0.420%
2.000%-
3.250%
4.280%-
4.610%
4.130%-
5.790%
4.130%-
5.790%
2.000%-
4.000%
N/A
2025 13,037,276
610,623,448
54,165,000
32,919,224
18,665,000
562,700
2030
2012
Bonds issued in order to acquire capital assets, for which the City has pledged its
incremental tax revenue from certain allocation areas up to the amount needed to
satisfy the principal and interest on the bonds as they become due:
Water Utility 2008 Coupon
Water Utility Capital
Appreciation 2008
2012
2013
N/A
5,500,000 2,333,293
Year of Year of Original Amount
Interest Rate Issue Maturity Amount Outstanding
Year of Year of Original Amount
Interest Rate Issue Maturity Amount Outstanding
Total bond principal, contract purchases,
capital leases, and compensated absences.
Total governmental activities bonds, contract
purchases, capital leases, and compensated absences.
2033
Contract purchases of capital assets:
9,630,000 8,400,000
2021
2032
2005 2026
2008
In the year ended December 31, 2016, the total of payments on the bonds listed immediately above was 3.9% of annual
incremental tax revenue.
2011
N/A
Sewer Utility 2012 Revenue
Bonds
2004 2024 9,500,000
Sewer Utility 2005 Revenue
Bonds Refinance
Interest Rate Issue Maturity Amount Outstanding
9,660,000
Compensated Absences
2036
Amount
3.400%-
7.650%N/A
6,437,337
Sewer Utility 2009 SRF
Taxable Tax Increment Revenue
Bonds, Series 2004A
N/A
2005-2015 N/A
N/A
2026
6.650%
6,082,000$
N/A
5,894,000
21,625,000
N/A
2028
2025
2036
30,720,000
22,237,250
4,064,574
30,720,000 2.000%-
5.000%2016
5,330,000
N/A
175,750,411
Water Note Payable 2006
Citizens 5.500% 2006
11,040,000
11,000,000$
64,020,000
20,644,479
2009
Year of Year of Original
176,763,272
63
2. Debt Service Requirements to Maturity
20,565,530
603,071,360$
Bonds and contract
purchases
On November 10, 2016, the City’s public improvement bond bank issued $53,735,000 of its Special Program Bonds, Series 2016
(2016 Water Bonds) in order to purchase certain outstanding City obligations, originally issued in 2008 (2008B Water Qualified
Obligations). The 2008B Water Qualified Obligations were purchased by the City’s bond bank from the Indiana Bond Bank, an
entity unrelated to the City. The acquisition of the 2008B Water Qualified Obligations by the Indiana Bond Bank had been
financed by the issuance of its own bonds, which were defeased as a consequence of the current transaction. There was no
material effect on the City’s financial statements because the City, through its bond bank, merely purchased its own obligations.
The City’s fundamental liability on the 2008B Water Qualified Obligations was unchanged, and the 2016 Water Bonds are
payable from corresponding, ongoing debt service payments from the 2008B Water Qualified Obligations in the same manner as
any other bond bank obligation. No City bonds or other obligations were refunded or defeased as part of the November 10, 2016,
transaction. Coincident to this transaction, the City agreed to waive its call rights on the 2008B Water Qualified Obligations. The
City’s bond bank, in turn, agreed to reduce future payments. The savings will be recognized over the remaining semi-annual
payments on the 2008B Water Qualified Obligations, through May 2028, on an approximately level basis. The savings will
average $609,400 annually.
December 31
Year Ended
Governmental Activities:
2017
2018
2019
2020
2022 - 2026
2027 - 2031
2032 - 2036
Total
19,058,576$
21,120,855
21,638,551
24,195,897
139,923,981
168,429,060
138,038,225
582,505,830
Principal Interest
27,547,744$
24,689,899
24,668,044
The City has pledged up to $1,115,000 of county option income tax revenue, payable in the event an overlapping unit of
government is unable to service certain debt. The City does not expect to be called upon to make these payments.
25,003,895
104,355,881
55,376,568
21,658,532
309,227,636$
Total
46,606,320$
2037 - 2041 24,677,804
The City expects the pledged revenue will be more than sufficient to satisfy the principal and interest on the
obligations listed above. This revenue is not pledged to satisfy any other obligations, nor is it committed for
operating or other necessary expenditures.
49,848,593
Excess of the
present value of
future payments
over the unpaid
principal of capital
appreciation bonds
In the year ended December 31, 2016, the total of payments on the bonds listed immediately above was 50.8% of annual
sewer or water user fee revenue.
1,501,361 26,179,165
45,810,754
46,306,595
49,199,792
244,279,862
2021 25,422,881 24,425,712
223,805,628
159,696,757
891,733,466$
64
Premium/Discount
3. Capital Leases
4. Operating Leases
5. Other Commitments
The City owns a certain office and theater building and is lessor to certain private tenants. The cost of the office and theater building
is $20,500,000. Depreciation expense for the year ended 2016 was $410,000 and book value for the year ended 2016 was
$18,860,000.
2027 - 2031 69,381,968 22,095,760 91,477,728
Total 169,313,074 98,373,177$ 267,686,251$
Capital Leases:
- - -
Total 6,836,403$ 571,081$ 7,407,484$
The City has entered into various capital leases for equipment for various departments, including Police, Fire, Streets, and for a golf
course. As of December 31, 2016, the City had assets with an original cost of $12,333,127 and accumulated depreciation of
$4,246,794 financed through capital leases.
and do not exceed, the committed or restricted fund balances of the respective funds. Construction commitments for the Storm Water
Fund were $30,149,323, and construction commitments for the Water and Sewer Enterprise Funds were less than $100,000.
Interest Total
1,990,520$ 195,061$ 2,185,581$ 2017
2031 - 2035
The City had various obligations outstanding at December 31, 2016, on contracts not completed. Those commitments are recorded as
encumbrances and shown as assigned fund balance in the General Fund. In other funds, these commitments, if any, are included in,
83,675 1,181,543
2026 - 2030 63,371 1,204 64,575
Business-Type Activities:
Year Ended
December 31 Principal Interest Total
2017 6,024,661 8,135,341$ 14,160,002$
2018 5,741,431 7,769,450 13,510,881
2019 6,265,486 7,640,968 13,906,454
2020 6,848,010 7,482,670 14,330,680
2021 7,447,187 7,320,089 14,767,276
2022 - 2026 51,531,331 32,995,476 84,526,807
Year Ended
December 31 Principal
2018 1,536,224 136,533 1,672,757
2019 1,200,498 94,605 1,295,103
2020 947,922 60,003 1,007,925
2021 - 2025 1,097,868
Bonded debt
6,437,337
175,750,411$
Capital Leases:
Year Ended
December 31 Principal Interest Total
175,670$ 9,428$ 185,098$ 2017
2018 137,995 5,551 143,546
The Sewer Utility entered into a capital lease for certain equipment. As of December 31, 2016, the Utility had assets with an original
cost of $788,589 and accumulated depreciation of $112,423 financed through capital leases.
Total 562,699$ 20,932$
2032 - 2036 16,073,000
583,631$
4,933,423 21,006,423
2019 98,441 3,554 101,995
2020 99,999 1,996 101,995
2021 - 2025 50,594 403 50,997
65
6. Nominal Debt Used as Tax Incentives
2006 B Taxable Economic Development Revenue Bonds (Buckingham-Gramercy Project)
2011 Taxable Economic Development Revenue Bonds (Meridian and Main)
2011 Taxable Economic Development Revenue Bonds (116th Street Centre Project)
2011 B Subordinate Economic Development Revenue Bonds (Arts District Shops and Lofts)
2013 A Taxable Economic Development Revenue Bonds (Legacy Project)
7. Economic Gain on Advance Refunding
1,359,338 1,231,952 127,385
Proceeds of bonds issued during the year ended December 31, 2016, known as the Lease Rental Bonds, Series 2016C, were used to
advance refund certain other obligations then outstanding, at an economic gain of $1,948,207.
1,363,819 1,235,332 128,487
1,362,369 1,233,852
1,359,869 1,232,226 127,643
6,807,341 6,168,985 638,356
6,814,578 6,176,635 637,943
5,448,088 4,937,625 510,463
$ 26,554,846 $ 23,448,245 $ 3,106,601
E. Agreements with Certain Taxpayers
The City and the County in which the City is situated have entered into certain agreements in accordance with Indiana law whereby
the City foregoes property tax revenue in return for a promise by a taxpayer to produce economic development benefits for the City or
County. Any commercial taxpayer is eligible to enter into such an agreement, which is subject to a public hearing and action by the
fiscal body of the City or County.
2032 - 2035
Totals
2018
The City has entered into certain transactions for the purpose of providing tax incentives to private firms to redevelop designated
property meeting certain criteria. Although the incentives take the legal form of debt, neither the City nor any other entity is
ultimately liable. For the designated property, the private firm is the property owner, the buyer of the bonds, and the sole taxpayer.
There is no recourse to the City. If the private firm makes improvements on the property, incremental property tax revenue is
generated, and some portion of that revenue is pledged to the payment of the bonds. In effect, the private firm is reimbursed for a
portion of the incremental property tax it paid. Accordingly, the bonds are not reported as liabilities in the accompanying financial
statements.
The change in cash flows resulting from the advance refunding is as follows:
Year
Refunded
Bonds
Refunding
Bonds Savings
2016 $ 680,756 $ -
In some instances, tax is reduced by granting a deduction from assessed value. In other instances, tax is reduced, in effect, by
dedicating incremental revenue from the taxpayer's property to service debt held by the taxpayer. In the latter instances, the debt will
have been incurred by the City to finance certain government improvements beneficial to development of the property, but there will
be no recourse to the City.
The amount of the tax deduction is a pre-determined percentage of net assessed value. The amount of the incremental revenue
depends on the incremental assessed value created by the taxpayer.
Commitments made by taxpayers under these agreements usually involve development of real estate of a kind and magnitude
considered desirable by City or County officials. In instances where deductions are granted from assessed value, the fiscal body of the
City or County may revoke the deduction if it finds that the taxpayer has not met the terms of the agreement.
2019
2020
2021
2022 - 2026
2027 - 2031
$ 680,756
2017 1,358,688 1,231,638 127,050
128,516
66
F. Risk Management; Claims
Changes in the balance of claim liabilities are as follows:
Unpaid claims, beginning of fiscal year
Incurred claims and changes in estimates
Claim payments
Unpaid claims, end of fiscal year
G. Pension Plans
1. Single Employer Defined Pension Plan
Plan Description
The City may be exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions;
job-related illnesses or injuries to employees; medical benefits to employees, retirees, and dependents; and natural disasters. The City
administration believes these risks are adequately covered by the purchase of insurance. Settlements in excess of insurance, if any,
have not been material in the past three years.
The City has chosen to establish a Self Insurance Fund to mitigate the risk of loss related to employee health claims. An excess
liability policy through commercial insurance covers individual claims in excess of $175,000 per year and provides an aggregate
commercial insurance coverage of amounts over $13,340,465. There were no significant reductions in insurance coverages from prior
years. Settled claims resulting from this risk did not exceed aggregate commercial insurance coverage in the three years ended
December 31, 2016.
Amounts are paid into the Fund by user departments. Funds are available for claims, claim reserves, and administrative costs of the
program. Interfund transfers into the Fund are based upon the actual claims incurred of each department's current year eligible
employees. The basis for estimating unpaid claims, including specific incremental claim adjustment expenditures, if any, is a study of
actual claims experience in recent past periods.
The Municipal Police Officers' 1925 and Firefighters' 1937 Plans are distinct single-employer defined benefit pension plans. The
plans are administered by local pension boards. The plans provide retirement, disability, and death benefits to plan members and
beneficiaries. The plan administrator does not issue a publicly available financial report that includes financial statements and
required supplementary information of the plan.
As established by Indiana law, the boards for the police officers' and firefighters' plans consist of eight and five members,
respectively. On each board, the mayor of the City and the chief of each department serve ex officio. On the police board, the clerk-
treasurer of the City also serves ex officio. The remaining members are elected by the active members, police and firefighters,
respectively. At least one member of each board must be a retired beneficiary of the respective plan.
1. If retired prior to January 1, 1986, receives 2% of the first-class salary for each year of service in excess of 20, or;
2. If retired after December 31, 1985, receives 1% of first-class patrolman salary for each 6 months of service in excess of 20
years. The total benefit may not exceed 74% of first-class salary.
1,376,256$
The amount of revenue forgone by the City for the year ended December 31, 2016, under these agreements is as follows:
City agreements involving property tax deductions
County agreements involving property tax deductions
City agreements involving property tax increment financing
Total
$ 211,785
5,359
663,035
$ 880,179
10,288,686
10,871,346 10,055,225
10,722,144
793,596$
2016
793,596$
2015
1,460,515$
Members of the police and fire departments hired prior to May 1, 1977, who retire with 20 or more years of active duty receive fifty
percent of the salary of a first-class patrol officer or firefighter plus:
Benefits provided:
67
Contributions:
Active members of the 1925 Police Officers' and 1937 Firefighters' plans had the option of participating in the deferred retirement
option plan (DROP). Under that plan, an active member could declare in advance a future retirement date. From the time of that
declaration, contributions on behalf of that member would have been segregated into a separate fund for his benefit. Upon retirement,
the member would have several options with regard to taking the balance in this fund in the form of a lump sum or future payments.
The member's regular retirement benefits would be paid as if he had retired on his declaration date. The City has no participants in
DROP.
Effectively, benefits are subject to a cost-of-living adjustment because they are tied to current members' salaries, which tend to be
adjusted each year, as opposed to the historical salaries of the retirees.
Retirees and beneficiaries currently receiving benefits 14
Terminated employees entitled to but not yet receiving benefits
Current active employees
Total Plan Members
-
14
-
The plans are closed to new entrants.
The plans are administered on a pay-as-you-go basis. Plan members are required by Indiana law to contribute an amount equal to
6 percent of the salary of a first-class patrolman. For the year ended December 31, 2016, the State of Indiana contributed $588,446 to
the '25 Police Officers' Plan and $605,440 to the '37 Firefighters' Plan on behalf of the City during the fiscal year.
Active members of the 1925 Police Officers' and 1937 Firefighters' plans had the option of converting to the 1977 Police Officers'
and Firefighters' Fund, which is described more fully below. Convertees were given a $10,000 bonus by the State of Indiana for
exercising the option to convert. After such a conversion, the member is covered by the benefit structure of the new plan, but the
benefits are still financed by the local unit. Of the Carmel members, four retired police officers and three retired firefighters
converted.
15
The plans also offer a disability benefit whereby members of the police and fire departments who have suffered or contracted a
mental or physical disease or disability that renders the member unable to perform the essential function of the department will
receive the greater of 55% of first-class salary or the pension benefit the member would have received if the member had retired on
the disability date.
The plans also provide a death benefit for a surviving spouse to receive the greater of
1. 30% of the monthly pay of a first-class patrol officer, or
2. 55% of the benefit the retiree was receiving.
In addition, each child of the deceased member will receive 20% of the monthly pay of a first-class officer or firefighter. Total benefit
for all such beneficiaries may not exceed the pension benefit the deceased member was receiving. In addition to the above benefit, a
funeral benefit of $12,000 will be paid to heirs of the deceased member.
Membership in the Plans as of the most recent actuarial valuation was comprised of the following:
Police Fire
15
-
-
68
Net Pension Liability and Pension Expense:
Assumptions and Other Inputs
Changes in the Net Pension Liability:
Changes for the year:
Fiduciary net position as a percentage of total pension liability
Balances as of December 31, 2016 9,971,078$
Investment Earnings Rate The plans maintain no investments and have no expectation of future earnings
from investments. The plans' assets are cash balances available for incidental
expenses. These are managed in the same way as other City deposits and may
earn negligible returns from interest-bearing accounts.
Plan Fiduciary
Net Position
Measurement Date
1925 or 1937 Plan
1977 Plan Converted 0.55% (est.) for 2016, 2.5% thereafter
2.71% for 2016, 2.5% thereafter
1.5%
Mortality and Mortality Improvement
Valuation Date
December 31, 2016
SOA published mortality improvement scale: MP-2015 generational, which
projects mortality improvement indefinitely beginning with high initial
improvement (based on recent experience) and tapering to a lower level of
improvement for long-term mortality projections.
Discount Rate 3.62% Police Officers; 3.65% Firefighters
Cost of Living Increase:
-
-
-
-
(546,063)
10,119,548$
Member contributions
Employer contributions
Benefit payments
Administrative expenses
Net investment income
148,470$
Increase (Decrease)
Total Pension
Liability
SOA published mortality table: RP-2014 adjusted to 2006 blue-collar mortality
table. Separate tables for male and female participants. Separate tables for active
employees, healthy annuitants, and disabled participants.
December 31, 2016–Police Officers' members' census data as of January 1, 2017,
and Firefighters member census data as of January 1, 2017, was used in the
valuation.
Net Pension
Liability
Effect of assumptions changes or inputs
The City's net pension liability of $9,971,078 for the '25 Police Officers' Plan and $10,852,994 for the '37 Firefighters' Plan was
measured as of December 31, 2016, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. For the year ended December 31, 2016, the City recognized pension expense of $483,209 for the
'25 Police Plan and $447,641 for the '37 Firefighters Plan.
(546,063)
546,748
-
-
-
-
363,703
-
122,896
-
-
(546,748)
-
122,896
-
363,703
-
147,785$ 10,031,227$
Effect of economic/demographic gains and losses
10,179,012$
-
Effect of plan changes
Interest on total pension liability
Service cost
-
Balances as of December 31, 2015
-
'25 Police Officers' Plan
-
-
-
-
-
69
Changes for the year:
Effect of economic/demographic gains and losses
Fiduciary net position as a percentage of total pension liability
Sensitivity of Net Pension Liability to Changes in the Discount Rate:
On-behalf payments
ASSETS:
Cash and investmentsReceivable from State of Indiana
Total assets
LIABILITIES: payroll withholdings
NET POSITION: restricted for pensions
'25 Police Officers' Plan $ 8,956,930
-
$ 9,971,078
10,852,994$
0.3%
39,365$ 10,958,342$
Service cost - - -
Interest on total pension liability 393,503 - 393,503
Effect of plan changes - - -
54,668 - 54,668
Effect of assumptions changes or inputs
$ 148,470
45,546
- - -
'37 Firefighters' Plan
-
$ 148,470
'25 Police
Pension
Trust Fund
'37 Fire
Pension
Trust Fund
$ 30,375
47,154
December 31, 2016
Benefit payments (562,509)
1% Decrease
(562,509)
Employer contributions
45,546 47,154
194,016 77,529
$ 30,375
Current
Discount Rate
10,997,707$
-
- -
Administrative expenses -
1% Increase
-
Net investment income
The State of Indiana granted substantially all of the funds needed to cover the benefit payments of the 1925 Police Pension Plan and
the 1937 Firefighters Pension Plan for the year ended December 31, 2016. The amounts were $588,446 and $605,440, respectively.
The State of Indiana is not obligated to make such grants in the future, and the City remains liable for future pension expenditures.
STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDS
'37 Firefighters' Plan $ 9,720,762 $ 10,852,994 $ 12,214,451
Regarding the sensitivity of the net pension liability to changes in the single discount rate, the following presents the City's net
pension liability, calculated using the single discount rate, as well as what the plan's net pension liability would be if it were
calculated using a single discount rate that is 1-percentage-point lower or 1-percentage-point higher:
$ 11,182,908
- 553,519 (553,519)
Member contributions -
- -
Balances as of December 31, 2016 10,883,369$ 30,375$
Increase (Decrease)
Total Pension
Liability
Plan Fiduciary
Net Position
Net Pension
Liability
Balances as of December 31, 2015
70
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - PENSION FUNDS
ADDITIONS:
State of Indiana contributions
Investment income
Miscellaneous revenue
Total additions
DEDUCTIONS:
Benefits
Other services and charges
Total deductions
NET INCREASE (DECREASE) IN NET POSITION
NET POSITION: beginning
NET POSITION: ending - restricted for pensions
2. Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
Public Employees' Retirement Fund
Plan Description:
For the Fiscal Year Ended December 31, 2016
Investments in the members' ASA are individually directed and controlled by plan participants who direct the investment of their
account balances among eight investment options, with varying degrees of risk and return potential. All contributions made to a
member's account are invested as a combined total according to the member's investment elections. Members may make changes to
their investment directions daily, and investments are reported at fair value.
Members are required to participate in the ASA. The ASA consists of the member's contributions, set by statute at three percent of
compensation as defined by IC 5-10.2-3-2 for PERF, plus the interest/earnings or losses credited to the member's account. The
employer may elect to make the contributions on behalf of the member. In addition, under certain conditions, members may elect to
make additional voluntary contributions of up to 10 percent of their compensation into their ASA. A member's contributions and
interest credits belong to the member and do not belong to the State or political subdivision.
The PERF ASA Only Plan is funded by an employer and a member for the use of the member, or the member's beneficiaries or
survivors, after the member's retirement. The PERF ASA Only Plan members are employees who are in a position eligible for
membership in the PERF Hybrid Plan and who elect to become members of the PERF ASA Only Plan. The PERF ASA Only Plan
membership does not include individuals who: (1) before March 1, 2013, were members of the PERF Hybrid Plan or (2) on or after
March 1, 2013, do not elect to participate in the PERF ASA Only Plan.
There are two aspects to the PERF Hybrid Plan defined benefit structure. The first portion is the monthly defined benefit pension that
is funded by the employer. The second portion of the PERF Hybrid Plan benefit structure is the annuity savings account (ASA) that
supplements the defined benefit at retirement.
$ 148,470
The City contributes to the Public Employees' Retirement Fund (PERF), which is administered by the Indiana Public Retirement
System (INPRS). It is a cost sharing, multiple-employer defined benefit plan. PERF provides retirement, disability, and survivor
benefits to full-time employees of the State not covered by another plan, those political subdivisions that elect to participate in the
retirement plan, including the City of Carmel, and certain INPRS employees. There are two tiers to the PERF Plan. The first is the
Public Employees' Defined Benefit Plan (PERF Hybrid Plan), and the second is the Public Employees' Annuity Savings Account
Only Plan (PERF ASA Only Plan).
'37 Fire
Pension
Trust Fund
$ 605,440
101 -
605,541
612,089
2,442
614,531
(8,990)
39,365
$ 30,375
'25 Police
Pension
Trust Fund
$ 588,446
391 3,338
592,175
591,191
299
591,490
685
147,785
71
Pension Plan Report and Fiduciary Net Position:
Retirement Benefits:
A member who has reached age 65 and has at least 10 years of creditable service is eligible for normal retirement and, as such, is
entitled to 100 percent of the pension benefit component. This annual pension benefit is equal to 1.1 percent times the average annual
compensation times the number of years of creditable service. The average annual compensation in this calculation uses the highest
20 calendar quarters of salary in a covered position. All 20 calendar quarters do not need to be continuous, but they must be in groups
of four consecutive calendar quarters. The same calendar quarter may not be included in two different groups. For PERF members
who serve as an elected official, the highest one year (total of four consecutive quarters) of annual compensation is used. Member
contributions paid by the employer on behalf of the member and severance pay up to $2,000 are included as part of the member's
annual compensation.
Ph. (888) 526-1687
A member who has reached age 60 and has at least 15 years of creditable service is eligible for normal retirement and, as such, is
entitled to 100 percent of the pension benefit. A member who is at least 55 years old and whose age plus number of years of
creditable service is a least 85 is entitled to 100 percent of the benefits as described above.
A member who has reached at least age 50 and has at least 15 years of creditable service is eligible for early retirement with a
reduced pension. A member retiring early receives a percentage of the normal annual pension benefit. The percentage of the pension
benefit at retirement remains the same for the member's lifetime. For age 59, the early retirement percentage of the normal annual
pension benefit is 89 percent. This amount is reduced five (5) percentage points per year (e.g., age 58 is 84 percent) to age 50 being
44 percent.
The pension plan's fiduciary net position has been determined on the same basis of accounting used by the pension plan. Detailed
information about the pension plan's fiduciary net position is available in the separately issued INPRS financial report, which is
available online at http://www.inprs.in.gov or may be obtained by contacting:
Indiana Public Retirement System
One North Capitol Avenue, Suite 001
Indianapolis, Indiana 46204
Defined Benefit Pension: The PERF Hybrid Plan retirement benefit consists of the sum of a defined pension benefit provided by
employer contributions plus the amount credited to the member's ASA. Pension benefits (non ASA) vest after 10 years of creditable
service. The vesting period is eight years for certain elected officials. Members are immediately vested in their ASA. At retirement, a
member may choose to receive a lump sum payment of the amount credited to the member's ASA, receive the amount as an annuity,
or leave the contributions invested with INPRS. Vested PERF members leaving a covered position, who wait 30 days after
termination, may withdraw their ASA and will not forfeit creditable service or a full retirement benefit. However, if a member is
eligible for a full retirement at the time of the withdrawal request, he/she will have to begin drawing his/her pension benefit in order
to withdraw the ASA. A non-vested member who terminates employment prior to retirement may withdraw his/her ASA after 30
days, but by doing so, forfeits his/her creditable service. A member who returns to covered service and works no less than six months
in a covered position may reclaim his/her forfeited creditable service.
72
Funding Policy:
Upon the death in service of a member with 15 or more years of creditable service as of January 1, 2007, a survivor benefit may be
paid to the surviving spouse to whom the member had been married for two (2) or more years, or surviving dependent children under
the age of 18. This payment is equal to the benefit that would have been payable to a beneficiary if the member had retired at age 50
or at death, whichever is later, under an effective election of the joint and survivor option available for retirement benefits. A
surviving spouse or surviving dependent children are also entitled to a survivor benefit upon the death in service after January 1,
2007, of a member who was at least 65 years of age and had at least 10 but not more than 14 years of creditable service.
The monthly pension benefits for members in pay status may be increased periodically as cost-of-living adjustments (COLA). Such
increases are not guaranteed by statute and have historically been provided on an “ad hoc” basis and can only be granted by the
Indiana General Assembly. There was no COLA for the year ended June 30, 2016; however, eligible members received a one-time
check (a.k.a. 13th check) in September 2015. The amount of the one-time check ranged from $150 to $450, depending upon a
member’s years of service, and was for a member who retired or was disabled on or before December 1, 2014, and who was entitled
to receive a monthly benefit on July 1, 2015.
The PERF Hybrid Plan also provides disability and survivor benefits. A member who has at least five years of creditable service and
becomes disabled while in active service, on FMLA leave, receiving worker's compensation benefits, or receiving employer-provided
disability insurance benefits may retire for the duration of the disability, if the member has qualified for Social Security disability
benefits and has furnished proof of the qualification. The disability benefit is calculated the same as that of the normal retirement
without reduction for early retirement. The minimum benefit is $180 per month, or the actuarial equivalent.
Members are obligated by statute to make contributions to the PERF Hybrid Plan or the PERF ASA Only Plan. Any political
subdivision that elects to participate in the PERF Hybrid Plan is obligated by statute to make contributions to the plan. The required
contributions are determined by the INPRS Board of Trustees based on actuarial investigation and valuation. The funding policy
provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll,
are sufficient to fund the pension benefits when they become due. As PERF is a cost-sharing plan, all risks and costs, including
benefit costs, are shared proportionately by the participating employers.
The following represents the City's annual required contributions:
Year Ended
December 31
Required
Contribution
Percentage
Contributed
2016 1,890,849$ 100%
The PERF Hybrid Plan or the PERF ASA Only Plan members contribute three percent of covered payroll to their ASA, which is not
used to fund the defined benefit pension for the PERF Hybrid Plan. For the PERF Hybrid Plan, the employer may elect to make the
contributions on behalf of the member. The employer shall pay the member's contributions on behalf of the member for the PERF
ASA Only Plan. In addition, members of the PERF Hybrid Plan (and the PERF ASA Only Plan) may elect to make additional
voluntary contributions, under certain criteria, of up to 10 percent of their compensation into their ASA.
PERF-covered employees are required to contribute 3% of their compensation to the Fund, and the City is required to contribute
amounts, which are actuarially determined, sufficient to fund the retirement benefits. The City contributes the 3% employee's portion.
In addition, some employees elect to make additional voluntary contributions to their PERF ASA Only Plans.
73
Significant Actuarial Assumptions:
Total Individual
Salary Growth
>=61
56-60
Cost-of-Living Increases – 1.0% per year in retirement beginning January 1, 2017. 13th checks were provided to members in pay
status in lieu of a permanent cost-of-living increase in fiscal 2015 and 2016.
<31
Accounting
6.75% (net of administrative and investment expenses)
2.50%
2.75%
3.25%
3.75%
4.25%
0.25%
0.50%
1.00%
1.50%
2.00%
2.25%
2.25%
2.25%
2.25%
2.25%
Age
Interest Rate/ Investment Return:
Funding
Mortality (Healthy and Disabled) – RP-2014 Total Data Set Mortality Tables, with Social Security generational improvements from
2006 based on the Social Security Administration’s 2014 Trustee Report
Retirement – Based on PERF experience 2010-2014
Inflation
Productivity,
Merit, and
Promotion
46-55
31-45
Asset valuation date – June 30, 2016
Liability valuation date – June 30, 2015 - Member census data as of June 30, 2015, was used in the valuation and
adjusted, where appropriate, to reflect changes between June 30, 2015 and June 30, 2016. Standard actuarial roll
forward techniques were then used to project the total pension liability computed as of June 30, 2015 to the June
30, 2016 measurement date.
Experience study date – Period of 4 years ended June 30, 2014
Actuarial cost method – Entry age normal (level percent of payroll)
Investment rate of return – 6.75%, net of investment expense, including inflation
6.75% (net of investment expenses)
Future Salary Increases –Based on 2010-2014 experience. Illustrative rates shown below:
The total pension liability is determined by INPRS actuaries in accordance with GASB No. 67, as part of their annual actuarial
valuation for each defined benefit retirement plan. Actuarial valuations of an ongoing plan involve estimates of the value of reported
amounts (e.g., salaries, credited service) and assumptions about the probability of occurrence of events far into the future (e.g.,
mortality, disabilities, retirements, employment terminations). Actuarially determined amounts are subject to continual review and
potential modifications, as actual results are compared with past expectations, and new estimates are made about the future. Key
methods and assumptions used in calculating the total pension liability in the latest actuarial valuations are presented below:
Interest on Member ASA Balances – 2.25% per year
74
Benefit Commencement Timing:
Data Assumptions:
•
•
•
Active members – If eligible for a reduced early retirement benefit upon termination from employment, 33% commence immediately
and 67% defer to earliest unreduced retirement age.
If eligible for an unreduced retirement benefit upon termination from employment, 100% commence immediately.
Terminated vested members – 100% defer to earliest unreduced retirement age. If currently eligible for an unreduced retirement
benefit, 100% commence immediately.
Disability – Based on 2010–2014 experience.
Changes in actuarial methods:
100% of non-vested inactive members are assumed to withdraw their ASA balance immediately on the valuation date.
Beginning April 1, 2017:
ASA Annuitization:
100% of active members are assumed to withdraw their ASA balance immediately upon decrement.
100% of inactive members are assumed to withdraw their ASA balance immediately.
Prior to April 1, 2017:
60% of active members who decrement while vested are assumed to annuitize their ASA balance at their assumed retirement age.
60% of vested inactive members are assumed to annuitize their ASA balance at their assumed retirement age.
Decrement timing – decrements are assumed to occur at the beginning of the year.
Spouse/beneficiary – 75% of male members and 60% of female members are assumed to be married and/or to have a dependent
beneficiary. Male members are assumed to be three years older than their spouses and female members are assumed to be two years
younger than their spouses.
Prior to April 1, 2017:
100% of active members who decrement prior to vesting are assumed to withdraw their ASA balance immediately upon
decrement.
40% of vested inactive members are assumed to withdraw their ASA balance immediately on the valuation date.
40% of active members who decrement while vested are assumed to withdraw their ASA balance immediately upon decrement.
For funding purposes and when the plan is below 100% funded (based on Actuarial Value of Assets), gains and
losses occurring from census experience different than assumed, assumption changes, and benefit changes will
be amortized over a 20-year period with level payments each year, rather than a 30-year period. A new gain or
loss base will continue to be established each year. This change is made on a prospective basis, beginning with
the June 30, 2016, actuarial valuation. Amortization bases established prior to June 30, 2016, will continue to
be amortized over their original amortization period, even if the remaining period is greater than 20 years at
June 30, 2016. If the plan is at or above 100% funded (based on Actuarial Value of Assets), the methodology
of treating past amortization bases as fully amortized and amortizing the entire surplus over an open 30-year
period is unchanged.
For funding purposes, the smoothing period for investment gains and losses in the development of the Actuarial
Value of Assets was increased from four years to five years at June 30, 2016. This change was implemented
retroactively in that the Actuarial Value of Assets at June 30, 2016, was computed as if the five-year
amortization period for recognizing investment gains and losses had always been in effect. This change
increased the Actuarial Value of Assets, and therefore decreased the Unfunded Actuarial Accrued Liability of
the plan by $19.3 million at June 30, 2016.
Changes in actuarial assumptions:
For the actuarial valuation as of June 30, 2016, there were no changes to the actuarial assumptions from the
actuarial valuation as of June 30, 2015.
Beginning April 1, 2017, assumes INPRS will outsource annuities to a third party for all ASA annuitizations.
75
2.0%
Real estate 7.0% 2.7%
Asset Class
24.0%2.7%
Fixed-income – inflation-linked 7.0%0.7%
Commodities 8.0%
Total pension liability for each defined benefit pension plan was calculated using the discount rate of 6.75 percent. The projection of
cash flows used to determine the discount rate assumed the contributions from employers, and, where applicable, from the members,
would at the minimum be made at the actuarially determined required rates computed in accordance with the current funding policy
adopted by the INPRS Board, and contributions required by the State (the non-employer contributing entity) would be made as
stipulated by State statute. Projected inflows from investment earnings were calculated using the long-term assumed investment rate
of return (6.75 percent). Based on those assumptions, each defined benefit pension plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members; therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefits to determine the total pension liability for each plan.
Fixed-income – ex inflation-linked
Target Asset
Allocation
Long-Term Expected
Rate of Return
Public equity 22.0%5.7%
Private equity 10.0%6.2%
Absolute return 10.0%4.0%
Risk parity 12.0%5.0%
The long-term return expectation for the defined benefit retirement plan has been determined by using a building-block approach and
assumes a time horizon, as defined in the INPRS Investment Policy Statement. A forecasted rate of inflation serves as the baseline for
the return expectation. Various real return premiums over the baseline inflation rate have been established for each asset class. The
long-term expected nominal rate of return has been determined by calculating a weighted average of the expected real return
premiums for each asset class, adding the projected inflation rate, and adding the expected return from rebalancing uncorrelated asset
classes.
76
Pension Plan Fiduciary Net Position:
-
552,618 223,079
Total that will be recognized in pension expense (income) based
on the table below 5,148,969 1,155,474
Pension contributions subsequent to measurement date
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
At December 31, 2016, the City reported a liability of $16,044,763 for its proportionate share of the net pension liability. The
City's proportionate share of the net pension liability was based on the City's wages as a proportion of total wages for the PERF
Hybrid Plan. The proportionate share used at the June 30, 2016 measurement date was 0.0035353.
6,616,056$ 1,155,474$
Changes in proportion and differences between City
contributions and proportionate share of contributions
For the year ended December 31, 2016, the City recognized pension expense of $3,241,375, which included net amortization of
deferred amounts from changes in proportion and differences between employer contributions and proportionate share of
contributions. At December 31, 2016, the City reported deferred outflows of resources and deferred inflows of resources related
to the PERF Hybrid Plan from the following sources:
Deferred Outflows
of Resources
1,467,087 -
29,618$
Net difference between projected and actual earnings on pension
plan investments 3,528,980 902,777
Changes in assumptions 707,908
1% Decrease Current Rate 1% Increase
5.75% 6.75% 7.75%
2016 23,044,079$ 16,044,763$ 10,227,273$
Detailed information about the pension plan's fiduciary net position is available in a stand-alone financial report of INPRS that
includes financial statements and required supplementary information for the plan as a whole. This report may be obtained by
writing the Indiana Public Retirement System, One North Capitol, Suite 001, Indianapolis, Indiana 46204, by calling (888) 526-
1687, by emailing questions@inprs.in.gov, or by visiting www.in.gov/inprs.
Deferred Inflows of
Resources
Differences between expected and actual experience 359,463$
Net pension liability is sensitive to changes in the discount rate. To illustrate the potential impact, the following table presents the net
pension liability of each defined benefit pension plan calculated using the discount rate of 6.75 percent, as well as what each plan's
net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%), or one percentage
point higher (7.75%) than the current rate:
Total
77
Plan Description:
Funding Policy:
Retirement Benefits:
1,542,233$
The 1977 Fund also provides disability and survivor benefits. An active member may file an application for disability benefits. A
determination is then made by the local pension board, and reviewed by the INPRS Board of Trustees, as to whether the member has
a covered impairment and whether the impairment was incurred in the line of duty or not. The calculation for
disability benefits is based on when the member was first hired, the type of impairment, and other factors. In addition, the heirs or
estate of a fund member may be entitled to receive $12,000 upon the member’s death.
Thereafter -
1977 Police Officers' and Firefighters' Pension and Disability Fund
The 1977 Police Officers' and Firefighters' Pension and Disability Fund is a cost-sharing multiple-employer defined benefit
pension plan administered by the Indiana Public Retirement System (INPRS) for all police officers and firefighters hired after
April 30, 1977.
The funding policy for the 1977 Fund requires remittances of member and employer contributions based on percentages of the
salary of a first-class officer or firefighter and not on actual payroll. The employer contribution rate is actuarially determined.
The required contributions are determined and may be amended by the INPRS Board of Trustees. Since the 1977 Fund is a cost-
sharing pension plan, all risks and costs, including benefit costs, are shared proportionately by the participating employers. For
the fiscal year 2016, plan members were required to contribute 6 percent and participating employers were required to contribute
19.7 percent of the first-class officers' and firefighters' salary. Employers may elect to pay all or part of the contribution for the
member.
2019
2018 985,071
1,039,165
2020 427,026
2021 -
Year Ending December 31,
The monthly pension benefits for members in pay status may be increased annually in accordance with the cost-of-living adjustment
(COLA) statute. A member is entitled to an annual increase in the member's benefit based on the percentage increase in the
Consumer Price Index (January-March); however, the maximum increase is 3.0 percent.
Amount
2017
A member vests after 20 years of service. If the member retires at or after the age of 52 with 20 years of service, the benefit is equal
to 50 percent of the salary of a first-class officer, as reported by the employer in the year the 1977 Fund member ended service plus
one percent of that salary for each six months of active service over 20 years to a maximum of 12 years. At age 50 and with 20 years
of service, a member may elect to receive a reduced benefit by a factor established by the fund's actuary.
Deferred outflows of resources resulting from employer contributions subsequent to the June 30, 2015, measurement date are
recognized as a reduction of net pension liability in the year ending December 31, 2016. Deferred inflows of resources resulting from
the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. A change
in an employer's proportionate share represents the change as of the current year measurement date versus the prior year measurement
date, and is amortized over the average expected remaining service lives of the plan. The difference between an employer's
contributions and the employer's proportionate share of the collective contributions is amortized over the average expected remaining
service lives of the plan. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in
pension expense as follows:
Total 3,993,495$
78
Actuarial Assumptions:
net of investment expense
•
•
•
The long-term return expectation for the defined benefit retirement plan has been determined by using a building-block approach and
assumes time horizon as defined in the INPRS Investment Policy Statement. A forecasted rate of inflation serves as the baseline for
the return expectation. Various real return premiums over the baseline inflation rate have been established for each asset class. The
long-term expected nominal rate of return has been determined by calculating a weighted average of the expected real return
premiums for each asset class, adding the projected inflation rate, and adding the expected return from rebalancing uncorrelated asset
classes.
If a member dies while receiving retirement or disability benefits, there are provisions for the surviving spouse and child(ren) to
receive a portion of the benefits. The member’s surviving spouse is entitled to a monthly benefit equal to 60 percent of the member’s
monthly benefit during the spouse’s lifetime. Each of the member’s surviving child(ren) is entitled to a monthly benefit equal to 20
percent of the member’s monthly benefit until the age of 18, or age 23, if a full-time student. If there is no eligible surviving spouse or
child(ren), a dependent parent(s) may receive 50 percent of the member’s monthly benefit during their lifetime.
For the actuarial valuation as of June 30, 2016, there were no changes to the actuarial assumptions from the
actuarial valuation as of June 30, 2015.
Salary increases
Inflation
2.00%
2.50%
2.25%
6.75%
Investment rate of return,
Cost-of-living increases, COLA or ad hoc
Changes in actuarial methods:
For funding purposes and when the plan is below 100% funded (based on Actuarial Value of Assets), gains and
losses occurring from census experience different than assumed, assumption changes, and benefit changes will
be amortized over a 20-year period with level payments each year, rather than a 30-year period. A new gain or
loss base will continue to be established each year. This change is made on a prospective basis, beginning with
the June 30, 2016, actuarial valuation. Amortization bases established prior to June 30, 2016, will continue to
be amortized over their original amortization period, even if the remaining period is greater than 20 years at
June 30, 2016. If the plan is at or above 100% funded (based on Actuarial Value of Assets), the methodology
of treating past amortization bases as fully amortized and amortizing the entire surplus over an open 30-year
period is unchanged.
For funding purposes, the smoothing period for investment gains and losses in the development of the Actuarial
Value of Assets was increased from four years to five years at June 30, 2016. This change was implemented
retroactively in that the Actuarial Value of Assets at June 30, 2016, was computed as if the five-year
amortization period for recognizing investment gains and losses had always been in effect. This change
increased the Actuarial Value of Assets and therefore decreased the Unfunded Actuarial Accrued Liability of
the plan by $10.7 million at June 30, 2016.
The actuarial assumptions used in the June 30, 2015, valuation of the 1977 Fund were adopted by the INPRS board in April 2015.
The total pension liability in the June 30, 2015, actuarial valuation was determined using the following actuarial assumptions, applied
to all periods included in the measurement:
Mortality rates were based on the RP-2014 (with MP-2014 improvement removed) blue collar mortality tables, with future mortality
improvement projected generationally using the future mortality improvement scale inherent in the Social Security Administration's
2014 Trustee Report.
The actuarial assumptions used are based on plan experience from July 1, 2010, through June 30, 2014, and were first used in the
June 30, 2015, valuation. The actuarial cost method used for computing the total pension liability is the entry age normal–level
percent of payroll method.
Changes in actuarial assumptions:
79
Investment Valuation and Benefit Payment Policies:
Fixed-income securities consist primarily of the U.S. government, U.S. government-sponsored agencies, publicly traded debt and
commingled investment debt instruments. Equity securities consist primarily of domestic and international stocks in addition to
commingled equity instruments. Fixed-income and equity securities are generally valued based on published market prices and
quotations from national security exchanges and securities pricing services. Securities that are not traded on a national security
exchange are valued using modeling techniques that include market observable inputs required to develop a fair value. Commingled
funds are valued using the net asset value (NAV) of the entity.
Real estate 7.0% 2.7%
Absolute return 10.0% 4.0%
Risk parity 12.0%
1% Increase
5.75%
Fixed-income – inflation-linked 7.0% 0.7%
6.75% 7.75%
2016 Fire
5.0%
1% Decrease
The pooled and non-pooled investments are generally reported at fair value by INPRS. Fair value is the price that would be received
to sell an asset in an orderly transaction between market participants at the measurement date.
Short-term investments consist primarily of cash, money market funds, certificates of deposits, and fixed-income instruments with
maturities of less than one year. Short-term investments are reported at cost, which approximates fair value or, for fixed-income
instruments, valued using similar methodologies as other fixed-income securities described below.
9,210,440$
Total pension liability for each defined benefit pension plan was calculated using the discount rate of 6.75 percent. The projections of
cash flows used to determine the discount rate assumed the contributions from employers and, where applicable, from the members,
would at the minimum be made at the actuarially determined required rates computed in accordance with the current funding policy
adopted by the INPRS Board, and contributions required by the State (the non-employer contributing entity) would be made as
stipulated by state statute. Projected inflows from investment earnings were calculated using the long-term assumed investment rate
of return (6.75 percent). Based on those assumptions, each defined benefit pension plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members; therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefits to determine the total pension liability for each plan.
The net pension liability (asset) is sensitive to changes in the discount rate. To illustrate the potential impact, the following table
presents the net pension liability of each defined benefit pension plan calculated using the discount rate of 6.75 percent, as well as
what each plan's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%)
or one percentage point higher (7.75%) than the current rate:
1,201,404$ (7,728,469)$
Target Asset
Allocation
2016 Geometric Basis Long-
Term Expected Real Rate of
Return
Public equity 22.0%5.7%
Private equity 10.0%6.2%
Fixed-income – inflation-linked 24.0%2.7%
12,268,460$
Current Rate
Commodities 8.0%2.0%
901,944$ (5,802,081)$ 2016 Police
80
Pension Plan Report and Fiduciary Net Position:
Annual Pension Cost:
Police
Alternative investments include limited partnership interests in private equity, absolute return, private real estate and risk parity
investment strategies. Publicly traded alternative investments are valued based on quoted market prices. In the absence of readily
determinable public market values, alternative investments are valued using current estimates of fair value obtained from the general
partner or investment manager. Moreover, holdings are generally valued by a general partner or investment manager on a quarterly or
semi-annual basis. Valuation assumptions are based upon the nature of the investment and the underlying business. Additionally,
valuation techniques will vary by investment type and involve a certain degree of expert judgment. Alternative investments, such as
investments in private equity or real estate, are generally considered to be illiquid long-term investments. Due to the inherent
uncertainty that exists in the valuation of alternative investments, the realized value upon the sale of an asset may differ from the fair
value.
Indiana Public Retirement System
One North Capitol Avenue, Suite 001
Ph. (888) 526-1687
Indianapolis, Indiana 46204
The pension plan's fiduciary net position has been determined on the same basis of accounting used by the pension plan. Detailed
information about the pension plan's fiduciary net position is available in the separately issued INPRS financial report, which is
available online at http://www.inprs.in.gov or may be obtained by contacting:
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience 376,751$ 572,183$
4,368,951 1,040,420
Changes in assumptions - 2,469,656
Changes in proportion and differences between City
contributions and proportionate share of contributions 47,829 42,807
Total that will be recognized in pension expense (income) based
on the table below 4,793,531 4,125,066
Pension contributions subsequent to measurement date 712,423 -
Total 5,505,954$ 4,125,066$
Net difference between projected and actual earnings on
pension plan investments
Derivative instruments are marked to market daily with changes in fair value recognized as part of investments and investment
income.
The City's contribution to the plan for the year ending December 31, 2016, was $1,545,985 for police participants and $2,059,104 for
fire participants, which was equal to the required contributions for each year.
At December 31, 2016, the City reported a liability of $901,944 for police and $1,201,404 for fire for its proportionate share of the
net pension liability. The City's proportionate share of the net pension liability was based on the City's wages as a proportion of total
wages for the plan. The proportionate share used at the June 30, 2016, measurement date was 0.0101528 for police and 0.0135237 for
fire.
For the year ended December 31, 2016, the City recognized pension expense of $1,182,511 for police and $1,562,818 for fire, which
included net amortization of deferred amounts from changes in proportion and differences between employer contributions and
proportionate share of contributions. At December 31, 2016, the City reported deferred outflows of resources and deferred inflows of
resources related to the 1977 Plan from the following resources:
81
Firefighters
H. Post-Employment Benefits
1. Single-Employer Defined Benefit Healthcare Plan
Plan Description
283,229$ 309,870$
Retirees eligible to participate are those who retire from the City of Carmel at age 55 with at least 20 years of creditable
employment with an Indiana public employer. Coverage terminates when the retiree becomes eligible for Medicare. Upon
termination of retiree coverage, spouses may continue coverage until they are eligible for Medicare.
The City offers other post-employment benefits (OPEB) in the form of health insurance, in addition to pensions described elsewhere
herein. OPEB is authorized by the Common Council of the City, subject to appropriation.
5,819,516 1,385,856
Changes in assumptions
The City's retiree healthcare plan is a single-employer defined benefit healthcare insurance program. It is a preferred provider
organization plan that provides comprehensive major medical benefits to eligible retirees, their spouses, and dependents. The plan
also provides dental and vision components.
16,929
Changes in proportion and differences between City
contributions and proportionate share of contributions
(369,741)
89,940
Total that will be recognized in pension expense (income) based
on the table below 6,338,283 5,527,577
Pension contributions subsequent to measurement date 967,925 -
Total
For retirees with at least 20 years of creditable employment full time with the City of Carmel, as opposed to another Indiana
public employer, the City's policy has been to cover 50-75% of the retiree or retiree/spouse contribution, depending on length
of service, up to a maximum of $10,800 per year.
5,527,577$
-
2019 173,648 218,997
2020 (504,806)
Thereafter (811,360) (1,098,922)
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Net difference between projected and actual earnings on
pension plan investments
Year Ending December 31, Police Amount Fire Amount
2017 385,236$ 500,836$
2018 905,446 1,193,765
7,306,208$
Differences between expected and actual experience 501,838$ 762,157$
3,289,624
Deferred outflows of resources resulting from employer contributions subsequent to the June 30, 2015 measurement date are
recognized as a reduction of net pension liability in the year ending December 31, 2016. Deferred inflows of resources resulting from
the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. A change
in an employer's proportionate share represents the change as of the current year measurement date versus the prior year measurement
date and is amortized over the average expected remaining service lives of the plan. The difference between an employer's
contributions and the employer's proportionate share of the collective contributions is amortized over the average expected remaining
service lives of the plan. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in
pension expense as follows:
82
Annual required contribution (ARC)
Interest on net OPEB obligation
Adjustment to ARC
Annual OPEB costActual employer contributions
Increase (Decrease) in net OPEB obligationNet OPEB obligation – beginning of year
Net OPEB obligation – end of year
Actuarial accrued liability
Actuarial value of plan assets
Unfunded actuarial accrued liability
Funded ratio
Covered payroll
Unfunded actuarial accrued liability
as a percentage of covered payroll
12/31/2016 8.0% 15,012,950$
10.2%
3,662,058$ 294,477$
32.4%
Annual OPEB Cost and Net OPEB Obligation
The City's OPEB cost (expense) is calculated based on the annual required contribution of the employer (ARC), an amount
actuarially determined in accordance with GASB Statement 45. The valuation date of the last actuarial valuation was December 31,
2015. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and to
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed 30 years. The following table shows the
components of the City's annual OPEB cost for the year 2016, the amount actually contributed to the plan, and changes in the net
OPEB obligation to the plan:
3,837,658$
482,118
-$
35,467,381$
0%
38,652,326$
Funded Status and Funding Progress
As of December 31, 2015, the most recent actuarial date, the funded status of the plan was as follows:
91.8%
35,467,381$
For the year ended December 31, 2016, the City contributed $294,477 to the plan for current premiums.
3,662,058 294,477
3,367,581 11,645,369
15,012,950$
Fiscal
Year Ended
12/31/2014
12/31/2015
Annual
OPEB Cost
2,246,546$
2,225,672$
Employer
Contributions
728,179$
228,124$
Net OPEB
Obligation
9,647,821$
11,645,369$
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan, and the net OPEB obligation for 2016 and
prior two years were as follows:
(657,718)
The Plan is funded on a pay-as-you-go basis. No irrevocable trust has been established to fund the plan. Accordingly, no trust
fund financial statements are published. The Plan issues no separate reports.
The plans are closed to new entrants.
Percentage of
Annual OPEB Cost
Contributed
83
ATTRIBUTION PERIOD Date of Hire to Full Eligibility
ECONOMIC ASSUMPTIONS:
Discount rate: methodology
Corporate bond rates
Single effective interest rate 4.14% per annum
The Required Supplementary Information immediately following the Notes to the Financial Statements presents multi-year trend
information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued
liability for benefits.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of
occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare cost
trend. Amounts determined regarding the funded status of the plan and the annual required contributions of the employer are subject
to continual revision as actual results are compared with past expectations and new estimates are made about the future. The
Schedule of Funding Progress, presented as required supplementary information following the notes to the basic financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to
the actuarial accrued liabilities for benefits.
Actuarial Methods and Assumptions
Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as it was understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of
sharing the benefit costs between the employer and plan members to that point. The actuarial methods and assumptions used include
techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liability and the actuarial value of assets,
consistent with the long-term perspective of the calculations.
In the December 31, 2015, actuarial valuation, the projected unit credit cost method was used. The actuarial assumptions included a
4.14% investment rate of return and an annual healthcare cost trend rate of 10% initially, reduced by decrements to an ultimate rate of
5% over 11 years. The unfunded actuarial accrued liability is being amortized as a level-dollar, 30-year open period.
The Plan's projected future benefit cash flows are discounted
back to the Plan's measurement date using the spot rates from a
high-quality corporate bond yield curve in effect on the Plan's
measurement date.
The December 31, 2015, Citigroup Pension Discount Curve,
which starts with a Treasury yield curve and adds an option-
adjusted spread for the difference between Treasury and
corporate Aa bonds. Rates are modified for durations less than 1
year and held constant for durations over 30 years.
84
Mortality:
Civilian employees
Police and fire employees
Mortality improvement
Disability
Turnover
Coverage rate
Spouse
Active participants
Retirement Rates:
Civilian employees:
Police and fire employees:
Plan Mix:
Plan A
Plan B
Age
19%
Female
19%
20%
35%
24%
21%
SOA published mortality table: RP-2014 adjusted to 2006 Total
Dataset mortality table. Separate tables for male and female
participants. Separate tables for active employees, healthy
annuitants, and disabled participants.
SOA published mortality table: RP-2014 adjusted to 2006 Blue
Collar mortality table. Separate tables for male and female
participants. Separate tables for active employees, healthy
annuitants, and disabled participants.
SOA published mortality improvement scale: MP-2015
generational, which projects mortality improvement indefinitely,
beginning with high initial improvement (based on recent
experience) and tapering to a lower level of improvement for
long-term mortality projections.
According to Sarason Table T-1
90% of eligible employees are assumed to be covered in the plan
at retirement.
Retired participants: Age and marital status based on actual
census data.
Male
17%
17%
19%
30%
100%
Age
45-51
52-54
55-60
61-64
65+
Rate
2.5%
7.5%
22.5%
30.0%
100.0%
45%
50-53
54
55
56
57
58
59
60
61
62
Male
2%
2%
4%
3%
4%
5%
5%
8%
14%
32%
Female
2%
3%
5%
4%
4%
5%
7%
12%
14%
26%
Age
63
64
65
66
67
68
69
70-74
75+
20%
None Assumed
Active participants: 50% are assumed to cover a spouse, with
male spouses 2 years older than female spouses.
40%
25%
22%
16%
30%
100%
55%
85
Per capita claims cost:
Age Age
55-59 All Ages
60-64
Inflation; health care cost trend rate: Year Medical Dental
0
1 to 2
3 to 5
6 to 8
9 to 10
11+
I. Interfund Receivables and Payables
The composition of the interfund balances as of December 31, 2016, is as follows:
Due to/from other funds
Receivable Fund Payable Fund
Nonmajor governmental fund General Fund
General Fund Water Enterprise Fund
General Fund Sewer Enterprise Fund
Motor Vehicle Highway Fund Storm Water Enterprise Fund
Total among governmental and proprietary funds
Sewer Enterprise Fund Water Enterprise Fund
Storm Water Enterprise Fund Water Enterprise Fund
Total among proprietary funds
J. Commitments and Contingencies
Total assigned from governmental fund balances:
400,000
The General Fund holds $11,551,941 of cash restricted for street-related projects, which is due to be transferred to a nonmajor fund
with compatible restrictions.
The General Fund is due a transfer of $400,000 from the Sewer Enterprise Fund to cover administrative costs.
11,551,941$
Male
12,576$
16,131$
10.0%
9.0%
8.0%
7.0%
Female
12,441$
14,575$
Male
384$
Female
384$
Medical & Vision
The General Fund provides $3,284,434 of cash to the Water Enterprise Fund for cash flow purposes.
The Motor Vehicle Highway Fund is due $55,250 from nonmajor enterprise fund to cover certain operating costs.
Various claims and lawsuits are pending against the City. At December 31, 2016, the administration believes the amount payable for
claims and judgments, if any, is not material in relation to the basic financial statements taken as a whole.
Certain City officials are empowered to issue purchase orders and enter into contracts that constitute contractual obligations of the
City. These encumbrances, treated as assigned fund balance as of December 31, 2016, are as follows.
3,284,434$
55,250
3,739,684$
681,338$
957,586$
1,910,880$
Amount
6.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
Dental
Varies by age and status; representative rates follow:
276,248
Water utility invoices include charges for sewer and other utilities, and these charges are remitted as collected, one month in arrears.
86
K. Subsequent Events
L. Prior Period Adjustments
Beginning fund balances were adjusted upward $1,790,716 to account for the following:
Redevelopment Commission cash account discovered after 2015 report
Governmental activities beginning net position was adjusted downward $6,613,069 to account for the following:
Redevelopment Commission cash account discovered after 2015 report
Change in 2015 capital assets
Total
Business-type activities beginning net position was adjusted downward $481,995 to account for the following:
Special revenue fund classified as an internal service fund in 2015
Total
On July 20, 2017, the City issued, through its local public improvement bond bank, $7,405,000 of its Taxable Special Program
Bonds, Series 2017A. The bonds were issued in order to acquire capital assets. To satisfy the principal and interest on the bonds, for
the terms of the bonds, the City has pledged an unlimited ad valorem property tax levy. The City expects the pledged revenue will be
more than sufficient to satisfy the obligations described above, as well as the obligations described elsewhere herein for which similar
pledges have been made. This revenue is not pledged to satisfy any other obligations, nor is it committed for operating or other
necessary expenditures.
Nonmajor governmental funds adjusted for amount previously reported
as an internal service fund
10,784,949$
17,354,112$
10,674,937$
15,673,408$
Beginning Fund
Balance Restatement
Beginning Fund
Balance, Adjusted
Beginning Net
Position Restatement
Beginning Net
Position, Adjusted
297,911,447$ 291,298,378$
112,063,056$ (481,995)$ 111,581,061$
Beginning Net
Position Restatement
Beginning Net
Position, Adjusted
110,012$
1,680,704$
110,012$
(6,723,081)
(6,613,069)$
(481,995)$
87
Post-employment healthcare plan:
Unfunded UAL as a
Actuarial Accrued Percentage
Actuarial Value of Accrued Liability Funded Covered of Covered
Valuation Assets Liability (UAL) Ratio Payroll Payroll
Date (a)(b)(b-a)(a/b)(c)((b-a)/c)
December 31, 2009 - 12,449,884 12,449,884 - 33,465,771 37.2%
December 31, 2011 - 19,688,810 19,688,810 - 34,681,816 56.8%
December 31, 2015 - 35,467,381 35,467,381 - 38,652,326 91.8%
2013 2,358,309$ 603,045$
2014 2,358,309$ 728,179$
2015 2,358,309$ 228,124$
2016 3,837,658$ 294,477$
Additional information on the City's OPEB can be found in Note III.H. on pages 82–86 of this report.
Annual Required
Contribution
Contribution
by Employer
SCHEDULE OF EMPLOYER CONTRIBUTIONS
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF FUNDING PROGRESS
For the Fiscal Year Ended December 31, 2016
The City did not publish financial statements in accordance with generally accepted accounting principles in
years prior to the year ended December 31, 2015. Accordingly, valuations were performed less than biennially.
88
Actuarially determined contribution
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2016
SCHEDULE OF ACTUARIALLY DETERMINED CONTRIBUTIONS
See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.
1937 Firefighters' Pension Plan:2016
553,519$
553,519
1925 Police Officers' Pension Plan:2016
Not applicable
-$
-
546,748
546,748$ Actuarially determined contribution
Contributions in relation to the actuarially determined contribution
Contribution deficiency (excess)
Contribution deficiency (excess)
2015
534,143$
534,143
-
Covered-employee payroll
Contributions as a percentage of covered-employee payroll
Contributions in relation to the actuarially determined contribution
Covered-employee payroll
Contributions as a percentage of covered-employee payroll
-$
-$
Not applicable
-$
Not applicable
2015
562,264$
562,264
-$
-$
Not applicable
89
Pension liability:
Fiduciary net position
Net pension liability
Net position as a percentage of the pension liability
Covered payroll
Net position as a percentage of covered payroll
Pension liability:
Fiduciary net position
Net pension liability
Net position as a percentage of the pension liability
Covered payroll
Net position as a percentage of covered payroll
10,883,369$
30,375
10,119,548$
2015
10,179,012$
147,785
10,031,227$
10,852,994$
0.3%
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2016
SCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOS
1.5%
7,552,611
Not applicable
2015
10,997,707$
39,365
10,958,342$
0.4%
-$
1925 Police Officers' Pension Plan:2016
1937 Firefighters' Pension Plan:2016
148,470
9,971,078$
1.5%
Not applicable
7,552,611
See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.
-$
Not applicableNot applicable
90
Pension liability - beginning
Changes for the year:
Pension liability - ending
Pension liability - beginning
Changes for the year:
Pension liability - ending $ 10,997,707
See notes to schedules, 1925 Police and 1937 Firefighters' Pension Plans
125,844
-
(535,016)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
December 31, 2016
SCHEDULE OF CHANGES IN NET PENSION LIABILITY
Effect of assumptions changes or inputs
396,965
-
125,812
-
(553,859)
-
-
-
-
Employer contributions
Member contributions
Net investment income
Administrative expenses
-
Effect of economic/demographic gains and losses
Service cost
-
Member contributions -
Net investment income
Benefit payments
-
363,703
-
122,896
Interest on total pension liability
Effect of economic/demographic gains and losses
-
(546,063)
-
-
-
1937 Firefighters' Pension Plan:
-
-
-
-
$ 10,179,012
Effect of plan changes
10,179,012$
1925 Police Officers' Pension Plan:2016 2015
10,220,740$
-
367,444
-
2015
11,028,789$
$ 10,883,369
-
2016
-
$ 10,119,548
10,997,707$
Service cost -
Interest on total pension liability 393,503
Administrative expenses -
Effect of plan changes -
54,668
Effect of assumptions changes or inputs -
Benefit payments (562,509)
Employer contributions
91
1925 POLICE OFFICERS' AND 1937 FIREFIGHTERS' PENSION PLANS
December 31, 2016
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO SCHEDULE
Discount rate
The City implemented GASB No. 68 in fiscal year 2015. The information above is presented for as many
years as available. The schedules are intended to show information for 10 years. Years not shown are not
available.
Amortization method
RP-2014 with MP-2014 removed and generational mortality
improvement using Scale MP-2015
Mortality
2.25%Cost-of-living adjustments
Valuation date:Actuarially determined contribution rates are calculated as of
December 31, 2016
Methods and assumptions used to determine contribution rates:
Actuarial cost method
Level Dollar
Entry Age Normal
N/ASalary increases
3.60%
92
City's Proportionate Share of the Net Pension
PERF Plan Net Position as a Percentage of Total
Pension Liability
City's Proportionate Share of the Net Pension
Police 2015
0.0101282
(1,496,139)$
7,552,611$
-20%
103%
Continued on next page.
2015
0.0034106
13,891,040$
16,335,991$
85%
77%
DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
December 31, 2016
77%
95%
16,943,306$
Public Employees' Retirement Fund:
Police 2016
City's Proportion of the Net Pension Liability
City's Proportionate Share of the Net Pension Liability
1977 Police Officers' and Firefighters' Pension and Disability Fund:
103%
City's Proportionate Share of the Net Pension Liability (Asset)
1977 Plan Net Position as a Percentage of Total
Pension Asset
Liability as a Percentage of Its Covered Employee Payroll
901,944$
City's Covered Employee Payroll 7,847,007$
0%
0.0101528
City's Covered Employee Payroll
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
2016
16,044,763$
0.0035353City's Proportion of the Net Pension Liability
Liability as a Percentage of Its Covered Employee Payroll
93
City's Proportionate Share of the Net Pension
(2,025,686)$
10,225,780$
-20%
103%
Fire 2015
(Continued)
DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE
OF THE NET PENSION LIABILITY
December 31, 2016
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
Fire 2016
City's Proportion of the Net Pension Liability 0.0135237
City's Proportionate Share of the Net Pension Liability (Asset)1,201,404$
City's Covered Employee Payroll 10,452,317$
Note: The City implemented GASB No. 68 in fiscal year 2015. The information above is presented for as
many years as available. The Schedule is intended to show information for 10 years. Years not shown are
not available.
Liability as a Percentage of Its Covered Employee Payroll 11%
1977 Plan Net Position as a Percentage of Total
Pension Asset 103%
The amounts presented for each year were determined as of the Plan's June 30 year-end that occurred
within the City's fiscal year.
0.0137130
94
Public Employees' Retirement Fund:
REQUIRED SUPPLEMENTARY INFORMATION
DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS
SCHEDULE OF CITY CONTRIBUTIONS
December 31, 2016
City of Carmel, Indiana
1,890,849$
Contributions as
a Percentage of
Covered
Employee
Payroll
City's Covered
Employee
Payroll
Contribution
Deficiency
(Excess)
City
Contributions
related to the
Contractually
Required
Contributions
Contractually
Required
Contributions
2016 Fire 2,059,104$ 2,059,104$ -$ 10,452,317$ 20%
2016
Police 1,545,985$ 1,545,985$ -$ 7,847,007$ 20%
1977 Police Officers' and Firefighters' Pension and Disability Fund:
Contractually
Required
Contributions
y
Contributions
related to the
Contractually
Required
Contributions
Contribution
Deficiency
(Excess)
City's Covered
Employee
Payroll
Contributions as
a Percentage of
Covered
Employee
Payroll
2016 11%16,943,306$ -$ 1,890,849$
2015 1,802,458$ 1,802,458$ -$ 16,335,991$ 11%
2015 Fire 2,014,469$ 2,014,469$ -$ 10,225,780$ 20%
2015
Police 1,487,857$ 1,487,857$ -$ 7,552,611$ 20%
95
Note: The City implemented GASB No. 68 in fiscal year 2015. The information above is presented for as many years as available. The
schedules are intended to show information for 10 years. Years not shown are not available.
Note: Covered payroll for the purposes of this schedule was determined as of the Plan's June 30 year end that occurred within the
City's fiscal year.
PUBLIC EMPLOYEES' RETIREMENT AND 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND
DISABILITY FUNDS
December 31, 2016
NOTES TO SCHEDULES
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
96
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax 35,275,920$ 37,687,913$ 36,100,175$ (1,587,738)$
Income tax 30,178,166 30,151,095 31,251,644 1,100,549
Licenses and permits 2,100,233 2,162,160 1,866,872 (295,288)
Intergovernmental 493,439 753,217 288,842 (464,375)
Charges for services 2,571,927 2,784,883 1,677,173 (1,107,710)
Fines and forfeits 627,868 657,468 504,182 (153,286)
Miscellaneous 1,242,027 1,071,983 1,441,815 369,832
Township and joinder agreements 1,017,578 1,087,444 923,798 (163,646)
Other 6,104,832 6,270,140 (347,879) (6,618,019)
Total revenues: budgetary basis 79,611,990$ 82,626,303$ 73,706,622$ (8,919,681)$
Increase in available intergovernmental receivable - - - -
Increase in available income tax receivable - - 1,100,549 -
Subfund transactions - - 3,848,246 -
Other 4,719,205
Transfer from a nonmajor fund
treated as revenue on a budgetary basis - - - -
Total revenues reported on the
Statement of Revenues and Expenditures -$ -$ 83,374,622$ -$
EXPENDITURES:
Current:
General government:
Clerk-Treasurer:
Personal services 699,344 671,144 696,921 25,777
Supplies 9,250 7,900 9,038 1,138
Other services and charges 246,911 411,009 332,965 (78,044)
Capital outlay 12,170 12,170 8,782 (3,388)
Mayor's Office:
Personal services 408,529 408,529 377,363 (31,166)
Supplies 4,599 4,599 3,607 (992)
Other services and charges 299,920 404,632 295,085 (109,547)
Capital outlay - - - -
City Council:
Personal services 274,470 274,470 218,807 (55,663)
Supplies 1,550 1,550 1,910 360
Other services and charges 3,403,427 3,603,427 2,627,709 (975,718)
Capital outlay 12,000 12,000 10,896 (1,104)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
General Fund
For the Fiscal Year Ended December 31, 2016
Budgeted Amounts
Continued on next page.
97
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
General government (continued):
Board of Public Works:
Personal services 18,923 18,923 13,129 (5,794)
Debt service 13,694,468 19,111,020 8,690,470 (10,420,550)
Administration:
Personal services 371,750 371,750 342,276 (29,474)
Supplies 63,900 63,900 25,830 (38,070)
Other services and charges 2,776,333 2,776,333 2,015,138 (761,195)
Capital outlay 44,155 44,155 19,395 (24,760)
Brookshire Golf Course:
Personal services 747,287 747,287 590,724 (156,563)
Supplies 138,050 138,050 86,672 (51,378)
Other services and charges 587,339 587,339 494,591 (92,748)
Capital outlay 12,000 12,000 4,072 (7,928)
Building Operations:
Supplies 33,000 14,000 13,606 (394)
Other services and charges 2,274,710 2,679,510 2,434,837 (244,673)
Capital outlay 45,000 19,200 19,195 (5)
City Court:
Personal services 792,470 792,470 665,956 (126,514)
Supplies - - - -
Other services and charges - - (64) (64)
Capital outlay 1,000 1,000 - (1,000)
Law Department:
Personal services 730,287 730,287 628,997 (101,290)
Supplies 1,975 1,975 1,191 (784)
Other services and charges 309,845 349,845 217,415 (132,430)
Capital outlay 28,252 28,252 14,537 (13,715)
Community Services:
Personal services 2,167,664 2,167,664 2,128,499 (39,165)
Supplies 38,748 38,748 24,925 (13,823)
Other services and charges 1,190,529 1,230,529 835,172 (395,357)
Capital outlay 122,174 122,174 60,699 (61,475)
Personnel/ Human Resources:
Personal services 377,900 398,900 378,405 (20,495)
Supplies 500 500 113 (387)
Other services and charges 70,431 70,431 59,557 (10,874)
Capital outlay 2,100 2,100 1,492 (608)
Information Systems:
Personal services 1,143,560 1,143,560 1,046,543 (97,017)
Supplies 9,600 9,600 3,510 (6,090)
Other services and charges 463,198 463,198 400,463 (62,735)
Capital outlay 129,477 129,477 96,922 (32,555)
For the Fiscal Year Ended December 31, 2016
(Continued)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
Continued on next page.
Budgeted Amounts
98
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
City Property Maintenance:
Personal services - - - -
Supplies 101,000 101,000 18,980 (82,020)
Other services and charges 803,831 803,831 542,674 (261,157)
Capital outlay - - - -
Public Affairs/ Community Relations:
Personal services 551,640 556,640 553,533 (3,107)
Supplies 4,285 (715) 2,240 2,955
Other services and charges 1,518,703 1,518,703 1,331,361 (187,342)
Capital outlay 6,141 6,141 3,824 (2,317)
Total general government 36,744,395 43,061,207 28,349,962 (14,711,245)
Public Safety:
Fire Department:
Personal services 21,103,484 21,461,484 21,509,281 47,797
Supplies 295,197 235,197 235,640 443
Other services and charges 1,635,549 1,570,549 1,469,534 (101,015)
Police Department:
Personal services 16,681,510 16,681,510 16,554,990 (126,520)
Supplies 773,093 773,093 465,252 (307,841)
Other services and charges 1,886,113 1,886,113 1,296,039 (590,074)
Capital outlay 108,746 108,746 76,796 (31,950)
Communication Center:
Personal services 578,800 578,800 520,871 (57,929)
Supplies 28,474 28,474 22,006 (6,468)
Other services and charges 2,085,407 2,085,407 1,994,145 (91,262)
Capital outlay 78,643 78,643 76,516 (2,127)
Total public safety 45,255,016 45,488,016 44,221,070 (1,266,946)
Culture and recreation:
Parks Department:
Personal services 2,001,940 2,001,940 1,816,875 (185,065)
Supplies 113,599 113,599 96,213 (17,386)
Other services and charges 819,744 819,744 700,260 (119,484)
Capital outlay 16,158 16,158 15,536 (622)
Total culture and recreation 2,951,441 2,951,441 2,628,884 (322,557)
(Continued)
Continued on next page.
Budgeted Amounts
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
For the Fiscal Year Ended December 31, 2016
City of Carmel, Indiana
99
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
Economic Development:
Redevelopment Department:
Personal services 254,080 307,060 273,301 (33,759)
Supplies 1,600 1,600 811 (789)
Other services and charges 220,459 167,479 64,799 (102,680)
Capital outlay 2,330 2,330 896 (1,434)
Total economic development 478,469 478,469 339,807 (138,662)
Total expenditures, budgetary basis 75,539,723
Increase in accrued liabilities:
Accounts payable 606,812
Accrued payroll and withholdings payable 340,157
Transfers to other funds (15,176,829)
Internal transfer not appropriated 530,826
Total expenditures reported on the
Statement of Revenues and Expenditures 61,838,000$
Budgeted Amounts
For the Fiscal Year Ended December 31, 2016
(Continued)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
100
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 9,423,203$ 9,678,040$ 10,685,169$ 1,007,129$
MVHF distribution 2,937,005 3,039,312 2,929,747 (109,565)
Miscellaneous 1,965,439 1,848,052 1,693,419 (154,633)
Total revenues: budgetary basis 14,325,647$ 14,565,404$ 15,308,335 742,931$
Transfers treated as revenue for budget purposes (597,319)
Other receipts not treated as revenue for budget purposes (25,570)
Total revenues reported on the
Statement of Revenues and Expenditures 14,685,446
EXPENDITURES:
Current:
Engineering:
Personal services 1,555,560 1,555,560 1,448,600 (106,960)
Supplies 13,279 13,279 8,684 (4,595)
Other services and charges 454,513 454,513 243,900 (210,613)
Capital outlay 476,565 476,565 203,704 (272,861)
Street Department:
Personal services 5,516,580 5,516,580 4,860,863 (655,717)
Supplies 1,686,117 1,686,117 1,241,810 (444,307)
Other services and charges 7,867,899 8,267,899 6,387,376 (1,880,523)
Capital outlay 69,306 69,306 34,891 (34,415)
Total expenditures: budgetary basis 17,639,819$ 18,039,819$ 14,429,828 (3,609,991)$
Increase in accrued liabilities:
Accounts payable 186,242
Accrued payroll and withholdings payable 69,233
Transfers to other funds (1,284,522)
Total expenditures reported on the
Statement of Revenues and Expenditures 13,400,781$
REQUIRED SUPPLEMENTARY INFORMATION
City of Carmel, Indiana
Budgeted Amounts
Motor Vehicle Highway Fund
For the Fiscal Year Ended December 31, 2016
MOTOR VEHICLE HIGHWAY FUND
BUDGETARY COMPARISON SCHEDULES
101
City of Carmel, Indiana
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
December 31, 2016
Budgetary Basis of Accounting
Annual budgets are required for the General Fund, Motor Vehicle Highway Fund, and certain nonmajor
funds. The original budget is the first complete appropriated budget for the year. The deadline for its
adoption by the Common Council is November 1 of the previous year. It is subject to adjustment by the
Common Council and, in certain circumstances, by an Indiana State agency.
The property tax levy is authorized at the time annual appropriations are adopted. Revenue budgets
represent the most recent estimates available to the Mayor and Council at that time. Final revenue budgets
represent the estimates available one year later, when the subsequent budget is adopted.
The appropriated budget is prepared by fund, department, character, and/or object. Transfers of
appropriations require the approval of the Common Council. The legal level of budgetary control (i.e., the
level at which expenditures may not legally exceed appropriations) is the character and/or object.
Appropriations in all budgeted funds lapse at the end of the fiscal year unless they are encumbered.
Encumbrances are contractual obligations related to unperformed (executory) contracts for goods or
services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the
extent necessary to assure effective budgetary control and accountability and to facilitate effective cash
planning and control.
The basis of accounting for the budget, and the actual revenues and expenditures provided for
comparison, is the cash basis, modified only by the addition of encumbrances to appropriations to arrive
at the total budget. Encumbrances are not added to actual expenditures because utilization of
encumbrances is optional at the managerial level.
102
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS
Special revenue funds - used to account for revenues derived for a specific purpose. The title of the funds is
descriptive of the activities involved. The City maintains the following nonmajor special revenue funds:
The Park Impact Fee Fund accounts for fees charged to developers solely for the purpose of maintaining parks.
The Hazardous Materials Fund accounts for fees charged on the handling of certain hazardous waste and required by
law to be used enhance the City’s ability to respond to hazardous waste emergencies.
The Parks Program Fund accounts for certain fees collected in accordance with inter-local governmental agreements
and required to be used for parks and recreation programs.
The Parks Monon Fund accounts for certain collected in accordance with inter-local governmental agreements and
required to be used to support the redevelopment of the former Monon Railroad track line as a recreational trail.
The Parks Facility Fund accounts for fees collected from program participants and shall be used for the purchase,
development, and/or rehabilitation of park facilities.
The Local Road and Street Fund accounts for gasoline taxes and other revenues collected by the State of Indiana and
distributed to the City in accordance with a statutory formula, required to be used for certain road and street
The Deferral Fund accounts for certain fees paid by offenders to defer their cases to a non-criminal process, required
by law to be used for certain public safety purposes.
The User Fee Fund accounts for the City’s share of certain fee revenue collected from participants in certain public
safety and criminal justice programs, and other court-related programs, required by law to be used for certain public
safety and court-related purposes.
The Barrett Law and Barrett Law Surplus Funds account for certain payments collected from property owners who
benefit from specific projects that affect their property, required to be used to cover debt service on those projects.
The Maternal Infant Health Program (MIHP) Fund accounts for funds used to support Medicaid beneficiaries in
order to promote healthy pregnancies, positive birth outcomes, and infant health and development.
The Health Self Insurance Fund accounts for the City's employee healthcare self-insurance program.
The Workers Compensation Fund accounts for the City's workers' compensation programs.
The Support for the Arts Fund accounts for donations and grants received to be spent on arts programs and
engagement.
Continued on next page.
103
CITY OF CARMEL
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
The Keystone Non-Reverting Fund accounts for amounts accumulated for certain infrastructure projects.
The Clerk’s Record Perpetuation Fund accounts for document storage fees and facsimile transmission fees collected
by the Carmel City Court. Disbursements are for the purpose of developing a record retention program.
The Court Interpreter Fund accounts for monies received from the Indiana Supreme Court to be spent on foreign
language interpreters for court cases.
The Public Defenders Fund accounts for the costs of public defender representation ordered by the court. Financing
is provided by charges assessed to individuals represented by public defenders.
The Judicial Salary Fees Fund accounts for certain court fees restricted by law to the payment of certain court
administration expenditures.
The Fire Gift Fund accounts for donations received for fire department expenditures.
The Police Gift Fund accounts for donations received for police department expenditures.
The Park Gift Fund accounts for donations received for park expenditures.
The Community Relations Gift Fund accounts for donations received for the community relations department.
The Economic Development Fund accounts for expenditures related to projects promoting economic development.
Financing is provided by state grants and loan payments. Expenditures include grants and related expenses.
The Housing Authority Fund accounts for expenditures related to the provision of affordable housing programs to
eligible renters within the City.
The Drug Task Force Fund accounts for donations to the City for various expenditures relating to this educational
program.
The Thoroughfare Fund accounts for amounts accumulated for certain infrastructure projects.
The Grant Fund is used to account for grant resources received from various local, state, and federal agencies and
organizations. The use of these resources is restricted to a particular function of the City by each grantor.
Continued on next page.
104
CITY OF CARMEL
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
Capital Projects Funds - used to account for revenues and other financing sources restricted or committed to
the acquisition of capital assets:
The Ambulance Fund accounts for EMS service fees, committed for acquisition of EMS and fire protection
i
The Park Capital Fund accounts for certain fees collected in accordance with inter-local governmental agreements
and required to be used for capital projects for parks and recreation.
The Cumulative Capital Improvement Fund accounts for cigarette taxes and other revenues collected by the State of
Indiana and distributed to the City in accordance with a statutory formula, required primarily to be used for certain
road and street contracts.
The Cumulative Capital Sewer Fund accounts for financial resources for the construction or repairing of storm
sewers. Financing is provided by a dedicated property tax levy.
The Cumulative Capital Development Fund accounts for a property tax levy established and imposed for the sole
purpose of funding certain types of capital acquisitions and the payment of debt service for such acquisitions.
The Illinois Street Construction Fund accounts for certain payments in lieu of taxes required by contract with the
payor to be used for certain capital projects.
The Old Town/126th Street Construction Fund accounts for the accumulation of resources for certain community
improvement projects.
The Capital Lease Fund accounts for the accumulation of resources for certain capital leases.
The 2016 Property Tax Bond Construction Funds 1 - 13 account for the proceeds of thirteen separate bond issues
secured by property tax, issued for the purpose of street improvement and construction.
Debt Service Funds- used to account for revenues and other financing sources restricted or committed to the
payment of principal and interest on noncurrent debt:
The Lease Rental Fund accounts for the accumulation of resources for certain leases.
The 2004 Road Bond Fund accounts for financial resources that are restricted to expenditure for payment of
principal and interest on certain bonds.
105
Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street Deferral User Fee Barrett Law Barrett Law Surplus MIHP ASSETS:Cash and investments 4,226,494$ $ 24,437 $ 2,957,823 2,666,639$ 57,821$ 1,100,950$ 366,178$ 175,308$ 6$ $ 166,369 25,361$ Property tax receivable - - ---- ---- -Due from other funds- - ---11,530,605 ---- -Intergovernmental receivables- - ---- ---- -Accounts receivable- - ---- ---- - Total assets4,226,494 24,437 2,957,823 2,666,639 57,821 12,631,555 366,178 175,308 6 166,369 25,361 LIABILITIES:Accounts payable1,837 - 15,366 239,061 2,432 396,879 - 1,549 -- -Claims payable- - ---- ---- -Due to other funds- - ---- ---- -Accrued payroll- - 84,624 87,856 -- 1,809 --- - Total liabilities1,837 - 99,990 326,917 2,432 396,879 1,809 1,549 - - - DEFERRED INFLOW OF RESOURCES: Unavailable revenue- - ---- ---- -FUND BALANCE:Restricted:General government- - - - - - - - - - - Public safety- 24,437 - - - - 364,369 173,759 - - 25,361 Highways and streets- - - - - 12,234,676 - - - - - Drainage and other capital assets- - - - - - - - 6 166,369 - Economic development- - - - - - - - - - - Culture and recreation4,224,657 - 2,857,833 2,339,722 55,389 - - - - - - Committed:General government------ -----Public safety------ -----Highways and streets------ -----Drainage and other capital assets------ -----Economic development------ -----Unassigned------ ----- TOTAL FUND BALANCES4,224,657 24,437 2,857,833 2,339,722 55,389 12,234,676 364,369 173,759 6 166,369 25,361 TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES4,226,494$ 24,437$ 2,957,823$ 2,666,639$ 57,821$ 12,631,555 366,178$ 175,308$ 6$ 166,369$ 25,361$ Continued on next page.City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016Special Revenue Funds106
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Health Self Insurance Workers Comp Support for the Arts Keystone Non-Reverting Urban Forestry Clerk's Record Perpetuation Court Interpreter Public Defenders Judicial Salary Fees Fire Gift 3,550,123$ 321,071$ 19,134$ 75,045$ 62,866$ 180,493$ 60$ 5,848$ 188,656$ 29,584$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,550,123 321,071 19,134 75,045 62,866 180,493 60 5,848 188,656 29,584 24,796 94,681 - - - - - - 2,005 - 1,376,256 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,401,052 94,681 - - - - - - 2,005 - - - - - - - - - - - - - - - 180,493 - - - - - - - - - 60 5,848 186,651 29,584 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 62,866 - - - - - 2,149,071 226,390 -------------------75,045 ---------------- 19,134 ----------------2,149,071 226,390 19,134 75,045 62,866 180,493 60 5,848 186,651 29,584 3,550,123$ 321,071$ 19,134$ 75,045$ 62,866$ 180,493$ 60$ 5,848$ 188,656$ 29,584$ Continued on next page.City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016Special Revenue Funds(Continued)107
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Police Gift Parks Gift Community Relations Gift Economic Development Housing Authority Drug Task Force Thoroughfare Levy Excess Grant Total Special Revenue Funds 23,350$ 32,584$ 123,886$ 48,565$ 58,865$ 709,829$ 764,272$ -$ -$ 17,961,617$ - - - - - - -- - -- - - - - - -- - 11,530,605 - - - - - - -- 366,200 366,200 - - - - - - -- - -23,350 32,584 123,886 48,565 58,865 709,829 764,272 - 366,200 29,858,422 - - 11,830 - - 1,549 -- 344,864 1,136,849 - - - - - - -- - 1,376,256 - - - - - - -- 21,336 21,336 - - - - - - -- - 174,289 - - 11,830 - - 1,549 -- 366,200 2,708,730 - - - - - - -- - -- - 112,056 - - - -- - 292,549 23,350 - - - - 708,280 -- - 1,541,699 - - - - - - 764,272 - - 12,998,948 - - - - - - -- - 166,375 - - - 48,565 58,865 - -- - 107,430 - 32,584 - - - - -- - 9,573,051 ----------2,375,461 ------------------- 75,045 ------------------- 19,134 ----------23,350 32,584 112,056 48,565 58,865 708,280 764,272 - - 27,149,692 23,350$ 32,584$ 123,886$ 48,565$ 58,865$ 709,829$ 764,272$ -$ 366,200$ 29,858,422$ Continued on next page.NONMAJOR GOVERNMENTAL FUNDSBALANCE SHEETCity of Carmel, Indiana(Continued)For the Fiscal Year Ended December 31, 2016Special Revenue Funds108
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Ambulance Park Capital Cumulative Capital Improvement Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction Capital Lease 2016 Property Tax Bond Construction 1 2016 Property Tax Bond Construction 2 2016 Property Tax Bond Construction 3 498,188$ 432,049$ 231,599$ $ 286,197 $ 276,478 $ 186,696 459$ 477,793$ 501,008$ 469,601$ 1,837,864$ - - - - 117,191 - ------ - - - - - ------ - - - - - -----329,062 - - - - - -----827,250 432,049 231,599 286,197 393,669 186,696 459 477,793 501,008 469,601 1,837,864 42,046 - - - 33,600 - ------ - - - - - ------ - - - - - ------ - - - - - -----42,046 - - - 33,600 - - - - - - 274,218 - - - 117,191 - ------ - - - - - - - - - - - - - - - - 477,793 - - - - - - - - 186,696 - - 501,008 469,601 1,837,864 - - - 286,197 242,878 - - - - - - - - - - - - 459 - - - - - 432,049 - - - - - - - - - - ----- -----510,986 ----- ------ -231,599 --- ------ ----- --- ----- ------ ----- -----510,986 432,049 231,599 286,197 242,878 186,696 459 477,793 501,008 469,601 1,837,864 827,250$ 432,049$ 231,599$ 286,197$ 393,669$ 186,696$ 459$ 477,793$ 501,008$ 469,601$ 1,837,864$ Continued on next page.City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016(Continued)Capital Projects Funds109
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES 2016 Property Tax Bond Construction 4 2016 Property Tax Bond Construction 5 2016 Property Tax Bond Construction 6 2016 Property Tax Bond Construction 7 2016 Property Tax Bond Construction 8 2016 Property Tax Bond Construction 9 2016 Property Tax Bond Construction 10 2016 Property Tax Bond Construction 11 2016 Property Tax Bond Construction 12 2016 Property Tax Bond Construction 13 Total Capital Projects Funds 1,538,103$ 1,758,472$ 1,733,314$ 1,006,723$ 1,732,933$ 1,439,564$ 1,670,455$ 1,532,843$ 1,560,836$ 1,390,478$ 20,561,653$ - - - - - - - - - - 117,191 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 329,062 1,538,103 1,758,472 1,733,314 1,006,723 1,732,933 1,439,564 1,670,455 1,532,843 1,560,836 1,390,478 21,007,906 - - - - - - - - - - 75,646 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 75,646 - - - - - - - - - - 391,409 - - - - - - - - - - - - - - - - - - - - - 477,793 1,538,103 1,758,472 1,733,314 1,006,723 1,732,933 1,439,564 1,670,455 1,532,843 1,560,836 1,390,478 18,358,890 - - - - - - - - - - 529,075 - - - - - - - - - - 459 - - - - - - - - - - 432,049 - - - - - - - - - - - - - - - - - - - - - - 510,986 - - - - - - - - - - 231,599 - - - - - - - - - - - - - - - - - - - - - - - 1,538,103 1,758,472 1,733,314 1,006,723 1,732,933 1,439,564 1,670,455 1,532,843 1,560,836 1,390,478 20,540,851 1,538,103$ 1,758,472$ 1,733,314$ 1,006,723$ 1,732,933$ 1,439,564$ 1,670,455$ 1,532,843$ 1,560,836$ 1,390,478$ 21,007,906$ Continued on next page.City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSCapital Projects FundsFor the Fiscal Year Ended December 31, 2016(Continued)110
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Lease Rental 2004 Road Bond Total Debt Service Funds Total Nonmajor Governmental Funds 3,853$ 159,080$ 162,933$ 38,686,203$ - 102,241 102,241 219,432 - - - 11,530,605 - - - 366,200 - - - 329,062 3,853 261,321 265,174 51,131,502 - - - 1,212,495 - - - 1,376,256 - - - 21,336 - - - 174,289 - - - 2,784,376 - 102,241 102,241 493,650 - - - 292,549 - - - 2,019,492 3,853 159,080 162,933 31,520,771 - - - 695,450 - - - 107,889 - - - 10,005,100 - - - - 2,375,461 - - - 510,986 - - - 306,644 - - - - 19,134 - - - - 3,853 159,080 162,933 47,853,476 3,853$ 261,321$ 265,174$ 51,131,502$ NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016(Continued)City of Carmel, IndianaBALANCE SHEETDebt Service Funds111
Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street Deferral User Fee Barrett Law Barrett Law Surplus MIHP REVENUES:Charges for services 899,011$ 11,178$ 4,042,383$ 5,672,259$ 78,929$ -$ -$ -$ -$ 268$ -$ Investment income11,679 44 10,013 8,525 147 302 958 94 - - 73 Fines and forfeits- - - - - - 28,681 38,592 - - - Licenses and permits- - - - - - - 50,251 - - - Other- - - - 360 - - 30,464 - - - Other taxes- - - - - - - - - - - Contributions- - 4,800 7,639 - - - - - - 12,114 General property taxes- - - - - - - - - - - Income tax- - - - - 11,530,605 - - - - - Intergovernmental Shared revenue- - - - - 1,224,856 - - - - - Grants- - - - - - - - - - - Total revenues910,690 11,222 4,057,196 5,688,423 79,436 12,755,763 29,639 119,401 - 268 12,187 EXPENDITURES:Current:General government- - - - - - - - - - - Public safety- - - - - - 156,418 105,235 - - 19,834 Streets and other infrastructure- - - - - - - - - - - Economic development- - - - - - - - - - - Culture and recreation- - 3,325,745 5,308,049 - - - - - - - Debt service:Principal- - - - - - - - - - - Interest- - - - - - - - - - - Lease rentals and issuance costs- - - - - - - - - - - Capital outlay:General government- - - - - - - - - - - Public safety- - - - - - - - - - - Streets and other infrastructure- - - - - 930,231 - - - - - Economic development- - - - - - - - - - - Culture and recreation509,211 - - - 35,035 - - - - - - Total expenditures509,211 - 3,325,745 5,308,049 35,035 930,231 156,418 105,235 - - 19,834 Excess (deficiency) of revenues over (under) expenditures401,479 11,222 731,451 380,374 44,401 11,825,532 (126,779) 14,166 - 268 (7,647) Other financing sources (uses):Transfers in- - - - - - - - - - - Transfers out- - (378,015) (263,825) - - (38,887) - - - - Debt issuance- - - - - - - - - - - Capital lease proceeds- - - - - - - - - - - Total other financing sources- - (378,015) (263,825) - - (38,887) - - - - NET CHANGE IN FUND BALANCES401,479 11,222 353,436 116,549 44,401 11,825,532 (165,666) 14,166 - 268 (7,647) FUND BALANCES: beginning3,823,178 13,215 2,504,397 2,223,173 10,988 409,144 530,035 159,593 6 166,101 33,008 FUND BALANCES: ending4,224,657 24,437 2,857,833 2,339,722 55,389 12,234,676 364,369 173,759 6 166,369 25,361 Continued on next page.Special RevenueSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016City of Carmel, Indiana112
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental Shared revenue Grants Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestLease rentals and issuance costsCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers inTransfers outDebt issuanceCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningFUND BALANCES: ending Health Self Insurance Workers Comp Support of the Arts Keystone Non-Reverting Urban Forestry Clerk's Record Perpetuation Court Interpreter Public Defenders Judicial Salary Fees Fire Gift -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 1,616 44 - 330 35 87 - 8 311 84 - - - - - - - - - - - - - - - - - - - - - 448,251 - - - 43,657 - 2,410 40,723 10,240 - - - - - - - - - - - - - - - - - - - 32,145 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,616 448,295 - 330 35 43,744 - 2,418 41,034 42,469 8,804,131 327,207 - - - 13,666 - - - - - - - - - - - - 50,948 37,560 - - - - - - - - - - - - - - - - - - - - - - 900,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 113,800 - - - - - - - - - - - - - - - - - - - - - - - - - - 8,804,131 327,207 900,000 113,800 - 13,666 - - 50,948 37,560 (8,802,515) 121,088 (900,000) (113,470) 35 30,078 - 2,418 (9,914) 4,909 9,270,887 - 900,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9,270,887 - 900,000 - - - - - - - 468,372 121,088 - (113,470) 35 30,078 - 2,418 (9,914) 4,909 1,680,699 105,302 19,134 188,515 62,831 150,415 60 3,430 196,565 24,675 2,149,071 226,390 19,134 75,045 62,866 180,493 60 5,848 186,651 29,584 Continued on next page.Special Revenue(Continued)STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSCity of Carmel, IndianaFor the Fiscal Year Ended December 31, 2016113
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental Shared revenue Grants Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestLease rentals and issuance costsCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers inTransfers outDebt issuanceCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningFUND BALANCES: ending Police Gift Parks Gift Community Relations Gift Economic Development Housing Authority Drug Task Force Thoroughfare Levy Excess Grant Total Special Revenue Funds -$ -$ -$ -$ -$ -$ -$ -$ -$ 10,704,028$ 60 111 383 - - 2,647 2,338 - 30 39,919 - - - - - - - - - 67,273 - - - - - - - - - 50,251 - - 1,918 27 33 49,615 120,603 - 69,029 817,330 - - - - - - - - - - 26,299 4,984 444,050 - - - 127,433 - 1,250 660,714 - - - - - - - - - - - - - - - - - - - 11,530,605 - - - - - - - - - 1,224,856 - - - - - 328,453 - - 863,032 1,191,485 26,359 5,095 446,351 27 33 380,715 250,374 - 933,341 26,286,461 - - - - - - - - - 9,145,004 27,709 - - - - 248,125 - - 683,486 1,329,315 - - - - - - - - - - - - - - - - - - - - - 18,045 406,960 - - - - - - 9,958,799 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,044,031 - - - - - - - - - - - - - - - - - - - 544,246 27,709 18,045 406,960 - - 248,125 - - 683,486 22,021,395 (1,350) (12,950) 39,391 27 33 132,590 250,374 - 249,855 4,265,066 - - - - - - - - - 10,170,887 - - - - - - - - - (680,727) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9,490,160 (1,350) (12,950) 39,391 27 33 132,590 250,374 - 249,855 13,755,226 24,700 45,534 72,665 48,538 58,832 575,690 513,898 - (249,855) 13,394,466 23,350 32,584 112,056 48,565 58,865 708,280 764,272 - - 27,149,692 Continued on next page.Special Revenue(Continued)STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016City of Carmel, Indiana114
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental Shared revenue Grants Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestLease rentals and issuance costsCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers inTransfers outDebt issuanceCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningFUND BALANCES: ending Ambulance Parks Capital Cumulative Capital Improvement Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction Capital Lease 2016 Prop. Tax Bond - Const. 1 2016 Prop. Tax Bond - Const. 2 2016 Prop. Tax Bond - Const. 3 1,269,309$ 1,477$ -$ 160$ -$ -$ -$ -$ -$ -$ -$ 1,517 - 103 - 125 1,620 - 1,108 3,952 3,774 1,278 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 201,836 - 300,875 - - - - - - - - - - - - - - - - - - - - - 3,055,591 - - - - - - - - - - - - - - - - - - - - - 667 - - - - - - - - - - - - - - - - - 1,270,826 1,477 201,939 160 3,357,258 1,620 - 1,108 3,952 3,774 1,278 - - - - - - - - - - - 1,378,638 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,848,596 - - - - - 154,228 - 340,707 657,652 - 1,248,587 906,444 792,643 53,414 - - - - - - - - - - - - 29,160 - - - - - - - - - 1,378,638 29,160 154,228 - 340,707 657,652 - 3,097,183 906,444 792,643 53,414 (107,812) (27,683) 47,711 160 3,016,551 (656,032) - (3,096,075) (902,492) (788,869) (52,136) - - - - - - - - 1,403,500 1,258,470 1,890,000 - - - - (3,053,809) - - - - - - - - - - - - - - - - - - - - - - - 2,294,226 - - - - - - - (3,053,809) - - 2,294,226 1,403,500 1,258,470 1,890,000 (107,812) (27,683) 47,711 160 (37,258) (656,032) - (801,849) 501,008 469,601 1,837,864 618,798 459,732 183,888 286,037 280,136 842,728 459 1,279,642 - - - 510,986 432,049 231,599 286,197 242,878 186,696 459 477,793 501,008 469,601 1,837,864 Continued on next page.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016(Continued)Capital Projects Funds115
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental Shared revenue Grants Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestLease rentals and issuance costsCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers inTransfers outDebt issuanceCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningFUND BALANCES: ending 2016 Prop. Tax Bond - Const. 4 2016 Prop. Tax Bond - Const. 5 2016 Prop. Tax Bond - Const. 6 2016 Prop. Tax Bond - Const. 7 2016 Prop. Tax Bond - Const. 8 2016 Prop. Tax Bond - Const. 9 2016 Prop. Tax Bond - Const. 10 2016 Prop. Tax Bond - Const. 11 2016 Prop. Tax Bond - Const. 12 2016 Prop. Tax Bond - Const. 13 Total Capital Projects Funds -$-$-$-$-$-$-$-$-$-$1,270,946$ 3,958 1,255 1,093 4,799 1,189 1,036 1,233 1,081 1,053 877 31,051 ------------------------------------------- 502,711 --------------------- 3,055,591 ---------------------667-----------3,958 1,255 1,093 4,799 1,189 1,036 1,233 1,081 1,053 8774,860,966 ---------------------1,378,638 --------------------------------------------------------------------------------------- 1,848,596 53,355 92,783 92,779 585,576 93,256 211,472 80,778 80,738 40,217 10,399 5,495,028 --------------------- 29,160 53,355 92,783 92,779 585,576 93,256 211,472 80,778 80,738 40,217 10,399 8,751,422 (49,397) (91,528) (91,686) (580,777) (92,067) (210,436) (79,545) (79,657) (39,164) (9,522) (3,890,456) 1,587,500 1,850,000 1,825,000 1,587,500 1,825,000 1,650,000 1,750,000 1,612,500 1,600,000 1,400,000 21,239,470 ----------(3,053,809) ---------------------2,294,226 1,587,500 1,850,000 1,825,000 1,587,500 1,825,000 1,650,000 1,750,000 1,612,500 1,600,000 1,400,000 20,479,887 1,538,103 1,758,472 1,733,314 1,006,723 1,732,933 1,439,564 1,670,455 1,532,843 1,560,836 1,390,478 16,589,431 ---------- 3,951,420 1,538,103 1,758,472 1,733,314 1,006,723 1,732,933 1,439,564 1,670,455 1,532,843 1,560,836 1,390,478 20,540,851 Continued on next page.City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2016(Continued)Capital Projects Funds116
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental Shared revenue Grants Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestLease rentals and issuance costsCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers inTransfers outDebt issuanceCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningFUND BALANCES: ending Lease Rental 2004 Road Bond Total Debt Service Funds Total Nonmajor Governmental Funds -$ -$ -$ 11,974,974$ 3 2 5 70,975 - - - 67,273 - - - 50,251 - - - 817,330 - 263,074 263,074 765,785 - - - 660,714 - 2,806,128 2,806,128 5,861,719 - - - 11,530,605 - - - 1,225,523 - - - 1,191,485 3 3,069,204 3,069,207 34,216,634 - - - 9,145,004 - - - 2,707,953 - - - - - - - - - - - 9,958,799 - - - - - - - - - - - - - - - - - - - 1,848,596 - - - 6,539,059 - - - - - - - 573,406 - - - 30,772,817 3 3,069,204 3,069,207 3,443,817 - - - 31,410,357 - (2,914,500) (2,914,500) (6,649,036) - - - - - - - 2,294,226 - (2,914,500) (2,914,500) 27,055,547 3 154,704 154,707 30,499,364 3,850 4,376 8,226 17,354,112 3,853 159,080 162,933 47,853,476 (Continued) Debt Service FundsCity of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2016 117
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Interest 140$ 104$ 51$ (53)$
Miscellaneous - - - -
State assumption of pension payments 609,922 609,922 562,264 (47,658)
Contribution from General Fund - - - -
Employee contribution ----
Total revenues 610,062 610,026 562,315 (47,711)
Variance
Actual With Final
EXPENDITURES:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services 609,922 609,922 565,038 (44,884)
Transfers to GF for '77 Uniform PERF payment - - - -
Supplies 150 150 -(150)
Other services and charges 3,500 3,500 2,442 (1,058)
Capital outlay ----
Total fire pension 613,572 613,572 567,480 (46,092)
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Interest 523$ 523$ 143$ (380)$
Miscellaneous - - - -
State assumption of pension payments 533,948 533,948 534,143 195
Contribution from General Fund - - - -
Employee contribution ----
Total revenues 534,471 534,471 534,286 (185)
Variance
Actual With Final
EXPENDITURES:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services 533,948 533,948 545,708 11,760
Transfers to GF for '77 Uniform PERF payment - - - -
Supplies 300 300 - (300)
Other services and charges 5,200 5,200 299 (4,901)
Capital outlay ----
Total police pension 539,448 539,448 546,007 6,559
Continued on next page.
Police Pension Fund
Budgeted Amounts
Police Pension Fund
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR FUNDS
For the Fiscal Year Ended December 31, 2016
Budgeted Amounts
Fire Pension Fund
Budgeted Amounts
Fire Pension Fund
118
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Local road & street distribution 1,202,680$ 1,202,680$ 1,250,439$ 47,759$
Miscellaneous - - - -
Interest 3,521 3,521 1,047 (2,474)
Total revenues 1,206,201 1,206,201 1,251,486 45,285
Variance
Actual With Final
EXPENDITURES:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services - - - -
Supplies - - - -
Other services and charges 810,387 732,570 328,075 (404,495)
Capital outlay 901,250 901,250 464,465 (436,785)
Total local road & street 1,711,637 1,633,820 792,540 (841,280)
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Cigarette tax distribution 209,471$ 209,471$ 198,907$ (10,564)$
Interest - - 77 77
Other ----
Total revenues 209,471 209,471 198,984 (10,487)
Variance
Actual With Final
Expenditures:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services - - - -
Supplies - - - -
Other services and charges 88,484 64,191 62,989 (1,202)
Capital outlay 160,103 160,103 91,239 (68,864)
Total cumulative capital improvement 248,587 224,294 154,228 (70,066)
Continued on next page.
Budgeted Amounts
Local Road & Street Fund
Budgeted Amounts
Cumulative Capital Improvement Fund
Budgeted Amounts
Cumulative Capital Improvement Fund
Budgeted Amounts
Local Road & Street Fund
For the Fiscal Year Ended December 31, 2016
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR FUNDS
(Continued)
119
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax levy 1,735,498$ 1,735,498$ 1,735,498$ -$
Interest (190) (190) 122 312
Commercial Vehicle Excise Tax 932 932 182,591 181,659
Other 182,176 182,176 181,577 (599)
Total revenues 1,918,416 1,918,416 2,099,788 181,372
Variance
Actual With Final
Expenditures:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services - - - -
Supplies - - - -
Other services and charges 491,791 491,791 3,372,699 2,880,908
Capital outlay 50,137 50,137 24,112 (26,025)
Debt service 5,809,000 5,809,000 -(5,809,000)
Total cumulative capital development 6,350,928 6,350,928 3,396,811 (2,954,117)
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax levy -$ -$ 21,339,600$ 21,339,600$
Interest 19 19 12,523 12,504
Commercial Vehicle Excise Tax - - -
Other --1,221,217 1,221,217
Total revenues 19 19 22,573,340 22,573,321
Variance
Actual With Final
EXPENDITURES:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services - - - -
Supplies - - - -
Other services and charges - - 2,914,500 2,914,500
Capital outlay - - - -
Debt service 2,948,000 2,948,000 -(2,948,000)
Total redevelopment bond 2,948,000 2,948,000 2,914,500 (33,500)
Continued on next page.
Cumulative Capital Development Fund
Cumulative Capital Development Fund
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR FUNDS
For the Fiscal Year Ended December 31, 2016
(Continued)
Budgeted Amounts
Redevelopment Bond
Budgeted Amounts
Redevelopment Bond
Budgeted Amounts
120
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax levy -$ -$ -$ -$
Interest - - 906 906
Commercial Vehicle Excise Tax - - - -
Other --105,174 105,174
Total revenues --106,080 106,080
Variance
Actual With Final
EXPENDITURES:Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Personal services 108,131 166,656 162,392 (4,264)
Supplies 23,025 23,025 4,998 (18,027)
Other services and charges 39,455 41,455 29,890 (11,565)
Capital outlay 20,200 20,200 2,426 (17,774)
Total deferral fund 190,811 251,336 199,706 (51,630)
Deferral Fund
Budgeted Amounts
Deferral Fund
NONMAJOR FUNDS
For the Fiscal Year Ended December 31, 2016
(Continued)
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
121
City of Carmel, Indiana
NONMAJOR ENTERPRISE FUNDS
The 4CDC Rental Service Fund accounts for the rental and maintenace operations of the 4CDC office building.
122
4CDC Rental Service Fund
ASSETS:
Current:
Cash and cash equivalents $ 42,985
Due from Water Fund -
Receivables -
Total current assets 42,985
Noncurrent, capital assets:
Land, improvements to land, and construction in progress -
Utility plant in service, net of depreciation -
Total noncurrent assets -
Total assets 42,985
LIABILITIES:
Current:
Accounts payable 15,814
Due to related city -
Tenant taxes payable 62,464
Rent paid in advance 7,383
Bonds payable, current portion -
Total current liabilities 85,661
Noncurrent, bonds payable:
Total liabilities 85,661
NET POSITION:
Net investment in capital assets -
Restricted -
Unrestricted (42,676)
Total net position (42,676)$
City of Carmel, Indiana
STATEMENT OF NET POSITION
Nonmajor Enterprise Funds
December 31, 2016
123
4CDC Rental Service Fund
OPERATING REVENUE:
Charges for services -$
Rent 1,034,682
Total operating revenues 1,034,682
OPERATING EXPENSES:
Office building maintenance 706,935
Drainage projects -
Other -
Total operating expenses 706,935
OPERATING INCOME (LOSS)327,747
OTHER FINANCING SOURCES (USES):
Transfers in -
Transfers out, governmental funds (400,000)
Investment income -
Total other financing sources (uses)(400,000)
CHANGE IN NET POSITION (72,253)
NET POSITION: beginning 29,577
NET POSITION: ending (42,676)$
City of Carmel, Indiana
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Nonmajor Enterprise Funds
December 31, 2016
124
4CDC Rental Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 978,013$
Payments to suppliers (715,466)
Net cash provided (used) by operating activities 262,547
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Net proceeds of bond issues -
Drainage projects -
Net cash provided by capital
and related financing activities -
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received -
TRANSFERS TO GOVERNMENTAL FUNDS (400,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS (137,453)
CASH AND CASH EQUIVALENTS: beginning 180,438
CASH AND CASH EQUIVALENTS: ending 42,985$
Continued on next page.
Nonmajor Enterprise Funds
For the Fiscal Year Ended December 31, 2016
City of Carmel, Indiana
STATEMENT OF CASH FLOWS
125
4CDC Rental Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)327,747$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Nonoperating income (expense)
(Increase) decrease in assets:
Accounts receivable 838
Other (57,507)
Interfund receivables -
Increase (decrease) in liabilities:
Accounts payable (8,531)
Other current liabilities -
Total adjustments (65,200)
Net cash provided (used) by operating activities 262,547$
Nonmajor Enterprise Funds
For the Fiscal Year Ended December 31, 2016
(Continued)
City of Carmel, Indiana
STATEMENT OF CASH FLOWS
126
City of Carmel, Indiana
FIDUCIARY FUNDS
Pension trust funds - used to report resources that are required to be held in trust for the members and
beneficiaries of defined benefit pension plans. The City maintains the following pension trust funds:
The Police Pension Fund accounts for the retirement and disability payments to police officers hired prior
to May 1, 1977.
The Fire Pension Fund accounts for the retirement and disability benefits to firefighers hired prior to May
1, 1977.
Agency funds - used to account for resources that are custodial in nature. They are amounts held by the
City on behalf of third parties. The City maintains the following agency funds:
The Court Fund accounts for certain collections made by municipal court for redistribution to third
parties.
The Payroll Fund accounts for certain amounts withheld from the compensation of City employees for
redistribution to third parties.
127
1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust Funds City Court Agency Fund Payroll Agency FundTotal Agency FundsASSETS:Cash and investments 148,470$ $ 30,375 $ 178,845 190,229$ -$ $ 190,229 Receivable from State of Indiana45,546 47,154 92,700 Total assets194,016 77,529 271,545 190,229 - 190,229 LIABILITIES:Payroll withholdings45,546 47,154 92,700 - - - Court escrow- - - 190,229 - 190,229 Total liabilities45,546 47,154 92,700 190,229$ -$ 190,229$ NET POSITION: restricted for pensions148,470$ 30,375$ 178,845$ City of Carmel, IndianaDecember 31, 2016COMBINING STATEMENTS OF FIDUCIARY NET POSITION - PENSION AND AGENCY FUNDS128
1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust FundsADDITIONS:State of Indiana contributions 588,446$ 605,440$ 1,193,886$ Investment income391 101 492 Miscellaneous revenue3,338 - 3,338 Total additions592,175 605,541 1,197,716 DEDUCTIONS:Benefits591,191 612,089 1,203,280 Other services and charges299 2,442 2,741 Total deductions591,490 614,531 1,206,021 NET INCREASE (DECREASE) IN NET POSITION685 (8,990) (8,305) NET POSITION: beginning147,785 39,365 187,150 NET POSITION: ending - restricted for pensions148,470$ 30,375$ 178,845$ City of Carmel, IndianaFor the Fiscal Year Ended December 31, 2016COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - PENSION FUNDS129
ASSETS AT JANUARY 1, 2016166,160$ Additions1,995,101 Deductions(1,971,032) ASSETS AT DECEMBER 31, 2016190,229$ LIABILITIES AT JANUARY 1, 2016166,160$ Additions1,995,101 Deductions(1,971,032) LIABILITIES AT DECEMBER 31, 2016190,229$ Total Agency FundsFor the Fiscal Year Ended December 31, 2016SCHEDULE OF CHANGES IN ASSETS AND LIABILITIES - AGENCY FUNDSCity of Carmel, Indiana130
City of Carmel, Indiana
Comprehensive Annual Financial Report
Contents Pages
Financial Trends 132 - 137
Revenue Capacity 138 - 141
Debt Capacity 142 - 145
Demographic and Economic Information 146 - 147
Operating Information 148 - 149
Note: The City is presenting its second CAFR since 2007. Accordingly, a 10-year history is
not presented for certain statistical section presentations.
Operating information is intended to provide contextual information about the City's
operations and resources to assist readers in using financial statement information to
understand and assess the City’s economic condition.
Source: Unless otherwise noted, the information in these schedules is derived from the CAFR
for the relevant year.
STATISTICAL SECTION
This part of the City's comprehensive annual financial report (CAFR) presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City's overall financial health.
Financial trends information is intended to assist users in understanding and assessing how
the City's financial position has changed over time.
Revenue capacity information is intended to assist users in understanding and assessing the
factors affecting the City's ability to generate its own-source revenues.
Debt capacity information is intended to assist users in understanding and assessing the City's
debt burden and its ability to issue additional debt.
Demographic and economic information is intended to (1) assist users in understanding the
socioeconomic environment within which the City operates and (2) provide information that
facilitates comparisons of financial statement information over time and among governments.
131
City of Carmel, Indiana
Net Position by Component
For the Fiscal Year Ended December 31, 2016
2016 2015
Governmental activities:
Net investment
in capital assets 299,216,267$ 314,601,738$
Not spendable - -
Restricted 25,355,156 25,629,325
Unrestricted (35,777,877) (42,319,616)
Total governmental
activities net position 288,793,546$ 297,911,447$
Business-type activities:
Net investment
in capital assets 116,495,474$ 113,210,726$
Not spendable - -
Restricted - -
Unrestricted (4,011,279) (1,147,670)
Total business-type
activities net position 112,484,195$ 112,063,056$
Primary government:
Net investment
in capital assets 415,711,741$ 427,812,464$
Not spendable - -
Restricted 25,355,156 25,629,325
Unrestricted (39,789,157) (43,467,286)
Total primary government
net position 401,277,741$ 409,974,503$
Note: The City is presenting its second CAFR since 2007. Accordingly,
a 10-year history is not presented for certain statistical section
presentations.
132
City of Carmel, Indiana
Changes in Net Position
For the Fiscal Year Ended December 31, 2016
2016 2015
Expenses:
Governmental activities:
General government 30,984,884$ 20,841,943$
Public safety 40,267,560 42,151,467
Streets and other infrastructure 12,340,719 29,584,125
Economic development 54,995,901 10,771,611
Culture and recreation 10,122,290 18,549,674
Unallocated interest expense 5,545,855 4,542,707
Total governmental activities expenses 154,257,210 126,441,527
Business-type activities:
Water 19,439,437 13,542,037
Sewer 10,016,870 7,305,928
Storm Water 1,651,075 -
Other 706,935 895,780
Total business-type activities expenses 31,814,317 21,743,745
Total primary government expenses 186,071,527$ 148,185,272$
Program Revenues:
Governmental activities:
Charges for services:
General government 82,803$ 72,056$
Public safety 1,470,638 1,152,600
Streets and other infrastructure 248,036 480
Economic development - -
Culture and recreation 11,585,645 7,345,221
Operating grants and contributions:
General government - -
Public safety 112,651 60,618
Streets and other infrastructure - -
Economic development - -
Culture and recreation - -
Capital grants and contributions:
General government - -
Public safety - -
Streets and other infrastructure 865,258 3,516,506
Economic development - -
Culture and recreation - 50,043
Total governmental activities revenues 14,365,031$ 12,197,524$
Continued on next page.
133
CITY OF CARMEL
Changes in Net Position
Fiscal Year ended December 31, 2016
(Continued)
Business-type activities:
Charges for services
Water 15,458,695$ 13,500,929$
Sewer 9,303,554 8,471,996
Storm Water 3,222,138 -
Other 1,034,682 4,038,620
Operating grants and contributions
Water - -
Sewer - -
Capital grants and contributions
Water 4,620,949 -
Sewer 552,460 -
Total business-type activities revenues 34,192,478 26,011,545
Total primary government revenues 48,557,509$ 38,209,069$
Net (expense) revenue and changes in net position:
Governmental Activities (139,892,179)$ (114,244,003)$
Business-Type Activities 2,378,161 4,267,800
(137,514,018) (109,976,203)
GENERAL REVENUES AND TRANSFERS:
Property tax 52,989,360 44,104,576
Income tax 36,700,613 32,745,504
Other taxes 28,850,762 26,154,361
Unrestricted investment earnings 574,253 155,461
Other 16,797,331 20,679,190
Transfers - -
Total general revenues and transfers 135,912,319 123,839,092
CHANGE IN NET POSITION BEFORE SPECIAL ITEMS (1,601,699) 13,862,889
SPECIAL ITEM: gain - 619,000
Total CHANGE IN NET POSITION (1,601,699) 14,481,889
NET POSITION: beginning 409,974,503 395,492,614
Restatement (7,095,064) -
NET POSITION: beginning, adjusted 402,879,439 395,492,614
NET POSITION: ending 401,277,741$ 409,974,503$
Total primary government net (expense) revenue
Note: The City is presenting its second CAFR since 2007. Accordingly, a 10-year history is not
presented for certain statistical section presentations.
134
2016 2015
General Fund:
Nonspendable -$ -$
Restricted - -
Committed - -
Assigned 1,910,880 1,416,155
Unassigned 15,066,402 14,008,886
Total General Fund 16,977,282$ 15,425,041$
All Other Governmental Funds:
Nonspendable -$ -$
Restricted 257,811,177 43,069,142
Committed 3,212,225 1,115,637
Assigned - -
Unassigned - (249,855)
Total all other governmental funds 261,023,402$ 43,934,924$
City of Carmel, Indiana
Fund Balances of Governmental Funds
Note: The City is presenting its second CAFR since 2007.
Accordingly, a 10-year history is not presented for certain
statistical section presentations.
Last Ten Fiscal Years
(modified accrual basis of accounting)
135
2016 2015
Revenues:
Property tax 52,647,063$ 44,043,914$
Income tax 46,625,784 28,847,934
Other local tax 28,850,762 26,154,361
Charges for services 12,901,368 8,570,357
Investment income 442,961 74,597
Licenses and permits 2,441,853 2,159,234
Fines and forfeits 571,556 788,604
Intergovernmental: - -
Grants 1,191,485 3,062,731
State shared revenue 6,825,041 4,870,501
Fire service contract 1,198,398 1,116,639
Contributions 660,714 286,716
Other 5,858,544 10,915,190
Total revenues 160,215,529 130,890,778
Expenditures:
Current:
General government 28,670,916 20,135,899
Public safety 38,547,773 45,026,384
Streets and other infrastructure 13,540,350 13,784,488
Economic development 5,074,808 4,284,583
Culture and recreation 13,397,374 13,432,578
Debt service:
Principal 17,387,515 15,768,608
Interest 17,763,071 17,223,247
Capital outlay:
General government 2,931,360 119,885
Public safety 1,925,392 3,710,693
Streets and other infrastructure 25,097,876 4,445,749
Economic development 16,809,771 2,439,830
Culture and recreation 734,053 422,388
Total expenditures 181,880,259 140,794,332
Excess (deficit) of revenues
over (under) expenditures (21,664,730) (9,903,554)
Continued on next page.
City of Carmel, Indiana
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
Last Ten Fiscal Years
136
2016 2015
Other financing sources (uses)
Bond issuance - principal 199,265,510 -
Bond issuance - premium 35,087,956 -
Proceeds - refunding 18,170,404 -
Capital lease proceeds 2,294,226 3,167,006
Payment to refunded bond escrow agent (17,909,681) -
Transfers in 278,264,371 30,928,247
Transfer in from associated utility 1,606,319 1,014,100
Transfers out (278,264,371) (30,928,247)
Total other financing sources (uses) 238,514,734 4,181,106
Total change in fund balances 216,850,004$ (5,722,448)$
Total debt service expenditures as a percentage
of noncapital expenditures 23.4% 25.0%
(Continued)
Note: The City is presenting its second CAFR since 2007. Accordingly, a
10-year history is not presented for certain statistical section
presentations.
City of Carmel, Indiana
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
Last Ten Fiscal Years
137
City of Carmel, IndianaAssessed Value and Actual Value of Taxable PropertyProperty Tax Revenue BaseLast Ten Fiscal YearsNet ValueNet ValueTotalTotalFiscalReal Estate Railroad/ Utility/ Business Net Taxable EstimatedDirectYearPropertyPersonal Property Assessed Value Actual ValueTax Rate20166,220,543,748420,168,7706,640,712,518 12,043,692,490 55.1% 0.835620156,006,875,967409,451,1196,416,327,086 11,591,806,730 55.4% 0.700720144,829,947,454398,186,3275,228,133,781 9,538,010,360 54.8% 0.700720134,762,146,198373,474,2015,135,620,399 9,445,479,646 54.4% 0.700720124,863,829,903398,308,9475,262,138,850 9,604,804,116 54.8% 0.678820114,891,357,512426,518,9045,317,876,416 9,561,032,777 55.6% 0.666420105,088,667,610388,639,3245,477,306,934 9,654,531,997 56.7% 0.666420095,010,445,942392,184,9795,402,630,921 9,462,572,040 57.1% 0.666420086,574,455,212382,323,3746,956,778,586 9,318,319,380 74.7% 0.503320076,221,469,456369,122,2646,590,591,720 8,765,674,160 75.2% 0.4329Source:Hamilton County Auditor's office property tax abstracts.Notes:Property taxes are the City's most significant own-source revenue.Assessed on January 1 of the prior year for taxes due and payable in the year indicated.Personal property other than business personal property was taxable through 2008 only.Estimated actual value is 100% of gross assessed value. Residential real property for homesteads is subject to a $45,000 homestead deduction plus a 35% supplemental homestead deduction to arrive at net assessed value. 138
City of Carmel, IndianaDirect and Overlapping Property Tax Rates(Rate per $100 of assessed value)Last Ten Fiscal Years2016201520142013201220112010200920082007City Direct Rates:Corporation General 0.5745 0.5088 0.5381 0.5459 0.5284 0.5266 0.4578 0.3969 0.3147 0.3268Motor Vehicle Highway 0.1701 0.1643 0.1249 0.1268 0.1080 0.0777 0.1291 0.1490 0.1153 0.0889Cumulative Sewer 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0166 0.0166 0.0166Debt Service0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000Redevelopment Bond0.0424 0.0000 0.0101 0.0000 0.0160 0.0145 0.0331 0.0565 0.0449 0.0006Lease Rental Payment0.0000 0.0000 0.0000 0.0000 0.0000 0.0144 0.0133 0.0143 0.0118 0.0000Cumulative Capital Development 0.0486 0.0276 0.0276 0.0280 0.0264 0.0332 0.0331 0.0331 0.0000 0.0000Total Direct Rate0.8356 0.7007 0.7007 0.7007 0.6788 0.6664 0.6664 0.6664 0.5033 0.4329Overlapping Rates:State0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0024 0.0024County0.2814 0.2926 0.3054 0.3074 0.2901 0.2769 0.2724 0.2651 0.2046 0.2121Solid Waste0.0032 0.0033 0.0033 0.0033 0.0032 0.0030 0.0030 0.0029 0.0023 0.0024Township - Clay0.0673 0.0746 0.0719 0.0781 0.0693 0.0753 0.0674 0.0945 0.0575 0.0609Library0.0778 0.0787 0.0787 0.0765 0.0682 0.0657 0.0657 0.0657 0.0494 0.0495Carmel Clay School Corp0.8053 0.8106 0.8453 0.8591 0.7911 0.8990 0.6460 0.6373 1.1895 1.1519Total Direct and Overlapping Rate 2.0706 1.9605 2.0053 2.0251 1.9007 1.9863 1.7209 1.7319 2.0090 1.9121Source: Hamilton County Auditor's office property tax abstracts; Indiana Department of Local Government Finance certified budget orders.Notes: For taxes due and payable in the year indicated and assessed the prior year.On November 2, 2010, Indiana voters approved a constitutional amendment to Article 10, Section 1 of the Indiana Constitution that limits the taxing power of Indiana public agencies. The amendment requires, for property taxes first due and payable in 2012 and thereafter, the general assembly to limit a taxpayer's property tax liability as follows: (1) Homestead property taxes are capped at 1%, (2) other residential and agricultural property taxes are capped at 2%, and (3) other real property and personal property taxes are capped at 3%. Property taxes approved by referendum are not subject to these limitations.139
City of Carmel, IndianaPrincipal TaxpayersCurrent Year and Nine Years AgoPercentage of Total City Percentage of Total City TaxpayerAssessed ValueAssessed ValueTaxpayerAssessed ValueAssessed ValueClarion Health North LLC103,018,600 1.66% Duke Realty 134,386,854 2.39%Carmel Lofts LLC44,897,400 0.72% Washington National88,829,250 1.58%Carmel Center Apartments LLC29,006,200 0.47% Clay Terrace Partners LLC56,847,669 1.01%Parkwood Four & Five LLC28,276,300 0.45% REI Investments43,881,951 0.78%Edward Rose Development Carmel LLC 26,795,000 0.43% Carmel Indy Properties LLC42,784,500 0.76%HR of Indiana LLC25,227,900 0.41% Tom Wood Auto Group34,438,539 0.61%Providence HUD LLC24,631,300 0.40% GPI Retail Properties - Gibralter 34,327,200 0.61%Legacy Towns & Flats LLC23,706,800 0.38% Midwest Independent Trans Sys 31,810,830 0.56%Parkwood Eight LLC22,444,700 0.36% Mohawk Housing Partners LLC 31,137,171 0.55%Parkwood Nine LLC22,361,200 0.36% Talcott II Meridian LLC/ Phoenix Life 30,907,011 0.55%350,365,400 5.63%529,350,975 9.40%Source: Hamilton County Auditor's office.20162007140
City of Carmel, IndianaProperty Tax Levied and CollectedLast Ten Fiscal YearsFiscalYear Total Taxes Levied Total Taxes Collected Percentage of Levy201655,990,426 52,647,063 94.03%201545,416,367 44,043,913 96.98%201444,020,059 40,554,757 92.13%201343,391,737 38,072,795 87.74%201243,399,780 37,319,721 85.99%201135,993,200 34,393,205 95.55%201036,193,490 36,600,347 101.12%200936,092,579 35,075,840 97.18%200834,911,856 29,265,547 83.83%200728,046,412 28,279,366 100.83%Source:Hamilton County Auditor's OfficeNote:Hamilton County Auditor's Office system is not set up to track collections by year levied. The amount collected includes any delinquent payment plus any penalty or interest applicable. At the end of 2016, total delinquent property tax due to the City for 2016 and all prior years was approximately $2,014,915.141
City of Carmel, IndianaLegal Debt MarginLast Ten Fiscal Years20162015Certified net assessed valuation6,700,625,433$ 6,481,570,742$ 2% statutory debt limit2.0%2.0%Subtotal134,012,509 129,631,415 divided by 33.0 3.0 Debt limit44,670,836 43,210,472 Net debt applicable to debt limit(33,580,000) (15,417,000) Legal debt margin11,090,836$ 27,793,472$ Legal debt margin as percentage of debt limit24.83% 64.32%Source: Indiana Department of Local Government Finance budget orders.Note: The City is presenting its second CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.142
City of Carmel, IndianaRatios of Outstanding Debt by TypeSinking FundPrincipal Amount Used to Repay Debt 2016 660,449,791 6,836,403 667,286,194 175,750,411 562,700 176,313,111 4,299,246 839,300,059 14.08% 9,427 12.64%2015 443,981,011 6,210,406 450,191,417 147,117,708 200,985 147,318,693 5,019,133 571,443,901 12.42% 6,441 8.91%1 Population and personal income data can be found in the Demographics and Economic Schedule.Note: The City is presenting its second CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.Governmental Activities Bonds and Contract Purchases Total Governmental Activities Bonds and Contract Purchases Percentage of Personal Income ¹ Capital Leases Capital Leases Net Debt as % of Actual Value of Taxable Property Debt per Capita ¹ Total Business Activities Total Primary Government Business Activities143
City of Carmel, IndianaDirect and Overlapping Debtat December 31, 2016PercentAmountApplicable to Applicable toGovernmental UnitOutstanding DebtCarmelCarmelDirect Debt:City of Carmel (see page 143) 667,286,194$ 100% 667,286,194$ Overlapping Debt Paid with Property Taxes:Carmel Clay School Corporation 146,480,000 78.89% 115,563,758 Carmel Clay Public Library 9,925,000 97.48% 9,674,724 Clay Township 40,790,000 97.48% 39,761,411 Hamilton County 186,100,000 34.98% 65,097,753 Other Overlapping Debt:Hamilton County Tax Increment Bonds 11,925,000 0.00% - Sub-Total Overlapping Debt: 395,220,000$ 230,097,646 Total Direct and Overlapping Debt:897,383,840$ Population - 2016 (2)89,029 Estimated direct and overlapping debt per capita10,080$ Note:(2) Source: U.S. Census Bureau(3) Source: U.S. Census BureauOverlapping districts are those that coincide, at least in part, with the geographic boundaries of the City. This schedule estimates the portion of the outstanding debt of those overlapping districts that is borne by the residents and businesses of the City. This process recognizes that, when considering the districts' ability to issue and repay long-term debt, the entire debt burden borne by the residents and businesses should be taken into account.(1) The percentage of overlapping debt applicable is estimated using taxable assessed property value. Applicable percentages were estimated by determining the portion of another governmental unit's assessed value that is within the City's corporate boundaries and dividing it by each unit total assessed value.144
City of Carmel, IndianaPledged Revenue CoverageNet Revenue Net RevenueOperating Operating Available forCoverageOperating Operating Available forCoverageRevenueExpenses (1)Debt ServicePrincipalInterest(2)RevenueExpenses (1)Debt ServicePrincipalInterest(2)2016 15,458,695$ 9,343,469$ 6,115,226$ 2,877,177$ 5,993,331$ 69%9,303,554$ 6,915,953$ 2,387,601$ 1,254,484$ 557,477$ 132%2015 13,500,929$ 9,367,529$ 4,133,400$ 3,457,294$ 6,158,188$ 43%8,471,996$ 6,383,278$ 2,088,718$ 1,256,303$ 562,869$ 115%Note: Details of the City's outstanding debt can be found in the notes to the financial statements.(1) Operating expenses do not include depreciation and amortization.(2) Coverage = Net Available Revenue/Debt Service Requirements.Note: The City is presenting its second CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.December 31, 2016Water UtilitySewer UtilityDebt Service RequirementsDebt Service Requirements145
City of Carmel, IndianaDemographic and Economic StatisticsLast Ten Fiscal YearsPublicFiscal Median Per Capita Personal High School School UnemploymentYear Population (1) Age (1)(2) Income (3) Income Graduation (4) Enrollment (5) Rate (6)201689,029 39.966,963 5,961,648,927 96.5%15,9543.2%201588,713 38.564,654 5,735,650,302 95.8%15,9713.3%201486,682 38.462,981 5,459,319,042 96.9%15,9124.0%201385,929 38.759,881 5,145,514,449 96.3%15,7244.8%201283,595 38.459,154 4,944,978,630 94.3%15,7505.0%201181,633 38.259,154 4,828,918,482 93.8%15,4935.3%201079,191 38.056,621 4,483,873,611 93.0%15,4985.9%200978,265 37.353,248 4,167,454,720 90.9%15,2186.2%200876,889 37.852,218 4,014,989,802 86.6%14,9273.5%200775,281 37.756,708 4,269,034,948 91.4%14,5882.4%Sources:(1) U.S. Census Bureau U.S. Census Bureau, 2015 American Community Survey 1-Year Estimates(2) U.S. Census Bureau, 2009-2013 5-Year American Community Survey Median Age and City of Carmel Per Capita Income for years 2010-2013.(3) Bureau of Economic Analysis Hamilton County Per Capita Income for years 2007-2015. 2016 estimate based on trend.(4) National Center for Educational Statistics(5) Indiana Department of Education Corporate enrollment, Carmel Clay Schools(6) Bureau of Labor Statistics146
City of Carmel, IndianaPrincipal EmployersCurrent Year and Nine Years AgoPercentage of Total City Percentage of Total City CompanyIndustryEmployeesRankEmploymentCompanyEmployeesRankEmploymentCarmel Clay SchoolsPublic Education2,384 1 7.28% Conseco Inc (now CNO Financial Group) 2,100 1 6.79%CNO Financial GroupInsurance Services1,750 2 5.34% Carmel Clay Schools1,840 2 5.95%GEICOAuto Insurance1,200 3 3.66% RCI1,200 3 3.88%Liberty MutualInsurance Services1,200 4 3.66% TCL - Thomson Electronics900 4 2.91%The Capital GroupFinancial Services1,000 5 3.05% Indiana Insurance Company800 5 2.59%IU Health North Hospital Healthcare Facility1,080 6 3.30% St. Vincent Carmel Hospital750 6 2.43%RCITime-Share Exchange Network900 7 2.75% Gaylor Group675 7 2.18%NextGear CapitalInventory Finance Solutions877 8 2.68% Household International675 8 2.18%KAR Auction Services Inc. Vehicle Auction Services828 9 2.53% Verizon550 9 1.78%Firestone Industrial Products World Headquarters; Diversified Products Group825 10 2.52% System Operator, Inc538 10 1.74%Source: Hamilton County Economic Development Corporation20162007147
2016 2015
General Government:
Clerk-Treasurer 8 6
Mayor 3 3
City Council 7 7
Board of Public Works 2 2
Plan Commission 11 11
Administration 2 4
City Court 7 7
Law Department 6 8
Community Services 22 22
Community Relations 5 4
Public Safety:
Police
Officers 109 117
Civilians 23 26
Fire
Firefighters and Officers 153 166
Civilians 8 9
Culture and Recreation:
Parks Department 64 62
Brookshire Golf 4 4
Utilities (Water and Sewer)103 109
Other Programs:
Human Resources 3 3
Street 48 52
Engineering 15 16
Information Systems 9 9
Communication Center 6 4
Redevelopment 3 1
TOTAL 621 652
Source: City of Carmel Department Heads
Note: The City is presenting its second CAFR since
2007. Accordingly, a 10-year history is not presented
for certain statistical section presentations.
City of Carmel, Indiana
City Government Employees
by Function/ Program
148
2016 2015
General Government:
Community Services
Permits issued 1,351 1,237
Residential Construction Permits 429 359
Total # Dwelling Units 432 1,663
Public Safety:
Police
Incidents 83,955 83,904
Occurred Incidents 4,270 4,330
Fire
Emergency Medical Responses 4,590 4,402
Fire-Related Calls for Service 2,237 2,312
Carmel Clay Parks:
Number of parks and greenways 16 15
Total acres 505 505
Total trail miles 16 16
Streets:
Number of "center lane" miles streets 482 482
Number of roundabouts 111 97
Source: City of Carmel Department Heads; Carmel Clay Parks
Note: The City is presenting its second CAFR since 2007.
Accordingly, a 10-year history is not presented for certain statistical
section presentations.
City of Carmel, Indiana
Other Operating Indicators
by Function/ Program
149