HomeMy WebLinkAboutComprehensive Annual Financial Report 2017Fiscal Year Ended December 31, 2017
CITY OF CARMEL INDIANA
Comprehensive Annual
Financial Report
Fiscal Year Ended December 31, 2017
Prepared by:
Board of Public Works and Safety
CITY OF CARMEL, INDIANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2017
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INTRODUCTORY SECTION Pages
Letter of Transmittal 8–15
GFOA Certificate of Achievement 16
Organizational Chart 17
List of Elected and Appointed Officials 18–19
FINANCIAL SECTION
Independent Auditor's Report 21–23
Management Discussion and Analysis 24–34
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position 35
Statement of Activities 36
Fund Financial Statements:
Governmental Funds:
Balance Sheet ‐ Governmental Funds 37
Reconciliation of the Balance Sheet ‐ Governmental Funds to the
Government‐wide Statement of Net Position 38
Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Governmental Funds 39–40
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances ‐ Governmental Funds to the Government‐wide
Statement of Activities 41
Proprietary Funds:
Statement of Net Position ‐ Proprietary Funds 42–43
Statement of Revenues, Expenses, and Changes in Net
Position ‐ Proprietary Funds 44
Statement of Cash Flows ‐ Proprietary Funds 45–46
Fiduciary Funds:
Statement of Fiduciary Net Position 47
Statement of Changes in Fiduciary Net Position 48
Notes to the Basic Financial Statements 49–85
86
Required Supplementary Information:
Schedule of Changes in Net OPEB Liability and Related Ratios
1925 Police Officers' And 1937 Firefighters' Pension Plans:
Schedule of Actuarially Determined Contributions 87
Schedule of Net Pension Liability And Related Ratios 88
Schedule of Changes In Net Pension Liability 89
Notes to Schedules 90
Defined Benefit Pension Plans - Multiple Employer Plans:
Schedule of the City's Proportionate Share of the Net Pension Liability 91–92
Schedule of City Contributions 93
Notes to Schedules 94
City of Carmel, Indiana
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2017
TABLE OF CONTENTS
4
Pages
Budgetary Comparison Schedules - General Fund 95–98
Budgetary Comparison Schedules ‐ Motor Vehicle Highway Fund 99
Notes to the Required Supplementary Information -
Budgetary Comparison Schedules 100
Supplementary Information:
Nonmajor Governmental Funds - Information 101–104
Combining Balance Sheet - Nonmajor Governmental Funds:
Special Revenue Funds 105–107
Capital Projects Funds 107–109
Debt Service Funds 109
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Nonmajor Governmental Funds:
Special Revenue Funds 110–112
Capital Projects Funds 113–114
Debt Service Funds 115
Budgetary Comparison Schedules ‐ Nonmajor Governmental Funds 116–119
Statement of Net Position - Nonmajor Enterprise Funds 121
Statement of Revenues, Expenses, and Changes in Net Position -
Nonmajor Enterprise Funds 122
Statement of Cash Flows - Nonmajor Enterprise Funds 123–124
Combining Statements of Fiduciary Net Position - Pension and Agency Funds 126
Combining Statement of Changes In Fiduciary Net Position - Pension Funds 127
Schedule of Changes in Assets and Liabilities - Agency Funds 128
STATISTICAL SECTION
Financial Trends:
Net Position by Component 130
Changes in Net Position 131–132
Fund Balances ‐ Governmental Funds 133
Changes in Fund Balances ‐ Governmental Funds 134–135
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property 136
Property Tax Rates - Direct and Overlapping Governments 137
Principal Property Taxpayers 138
Property Tax Levies and Collections 139
Debt Capacity:
Legal Debt Margin Information 140
Ratios of Outstanding Debt by Type 141
Direct and Overlapping Governmental Activities Debt 142
Pledged‐Revenue Coverage 143
Demographic and Economic Information:
Demographic and Economic Statistics 144
Principal Employers 145
Operating Information:
Full‐Time Equivalent Employees by Function 146
Operating Indicators by Function 147
TABLE OF CONTENTS (CONTINUED)
For the Fiscal Year Ended December 31, 2017
City of Carmel, Indiana
Comprehensive Annual Financial Report
5
Lang Lang
INTRODUCTORY SECTION
Introductory Section:
Letter of Transmittal
Certificate of Achievement – Government Finance
Officers Association
City of Carmel Organization Chart
List of Principal Officials
6
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CHRISTINE PAULEY, CLERK-TREASURER
July 25, 2018
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, 2017. 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 2017. 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 unmodified opinion the that City of Carmel’s financial
statements for the year ended December 31, 2017, are fairly presented in conformity with
GAAP. The independent auditor’s report is presented as the first component of the
financial section, on page 21 of this report.
ONE CIVIC SQUARE, CARMEL, IN 46032 www.carmel.in.gov
CITY OF CARMEL
JAMES BRAINARD, MAYOR
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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 nearly 49 square miles, with more than 486 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 95,170 (according to recent census estimates).
Personal income statistics are above national and State of Indiana averages. The median
household income level is $106,546, and the average price of a home is $306,500.
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.
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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 535 full time and 30 part-time employees with union
representation as follows:
Carmel Professional Firefighters / IAFF #4444
Firefighters 153
Fraternal Order of Police Lodge #185
Police 109
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 a legally separate redevelopment authority, a 501(c)(4) corporation, and a statutory public
improvement bond bank 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.
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 communities in the Indianapolis Metropolitan Area.
More than 100 companies have their international, national, or regional headquarters
located in the City. More than 1,644 jobs were announced in 2017. The newest or expanded
businesses in Carmel include Green Circle Health, GadellNet Consulting Services,
The Brookfield Group, EduSource, Mitsch Design, MJ Insurance, Allegion, Phi Kappa
Sigma, KAR Auction Services, CleanSlate Technology Group, Clinical Architecture,
Liberty Mutual, Innovative Health Solutions, Indigo BioAutomation and Expedient.
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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 (prior to their move into
Midtown), 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 1,709.
Liberty Mutual Insurance, which began operations in 1912, employs 1,430 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 has
announced another expansion of offices and jobs in a new facility it will build adjacent to
its existing structure. The company employs approximately 802 as of the end of 2017.
Several other established major employers in the City include GEICO, with more than
1,114 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 1,057 employees; KAR Auction
with 1,600 employees in Indiana (most of them in Carmel); American Specialty Health
with 265 employees and plans to continue to grow; Duke Realty with 475 employees;
Allegion, the headquarters for a security technology company, with 400 employees; and
Delta Faucet, with 425 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. Trail expansions have brought our total miles of paths and trails to more than
195. 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.
Center Green is a public place providing an area for the community and visitors to gather for
events and festivals between the Palladium and Tarkington theater building. The Carmel
Farmers Market attracts tens of thousands to its Saturday morning markets. In 2017, the City
unveiled the Carmel Christkindlmarkt and the Ice at Center Green, creating a winter
wonderland with shops, dining options, skating and entertainment in the fresh crisp air,
attracting more than 150,000 people during the holiday season. The Christkindlmarkt was
open from mid-November until Christmas Eve each week from Wednesdays through
Sundays. The Ice at Center Green was set to remain open until March 11, 2018.
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. A new Community Tech Center on Main
Street provides another location for computer use and training, software, recording room and
3-D printing services for library patrons.
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 2017 enrollment for the School
Corporation at 16,147 students, with 1,067 certified and 1,084 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.
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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.
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 corporate headquarters in buildings
that will be under construction this year. Midtown, situated between City Center and the
Arts & Design District, had its first tenants move into their offices by the end of 2017. This
area is poised for rapid growth in 2018 for both residential and business sectors. Public
spaces are planned as well.
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.
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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 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.F 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.G 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.
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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.
Rjsk Mana2ement
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.
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,
I:., Brai�ard
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Clerk-Treasurer
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The Government Finance
Officers Association of the
United States (GFOA) awarded
the City a Certificate of
Achievement for Excellence in
Financial Reporting for its
Comprehensive Annual
Financial Report (CAFR) for the
fiscal year that ended
December 31, 2016. This
Certificate of Achievement is
the highest form of
recognition in governmental
accounting and financial
reporting, and its attainment
represents a significant
accomplishment by a
government and its
management.
A Certificate of Achievement is
valid for a period of one year.
We believe our current report
continues to conform to the
Certificate of Achievement
program requirements, and
we are submitting it to the
GFOA.
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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 ‐ Investments17
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 OfficialsFor the Fiscal Reporting Year Ended December 31, 2017
Elected Officials
18
For the Fiscal Year Ended December 31, 2017
Appointed Officials
City of Carmel, Indiana
List of Elected and Appointed Officials
(Continued)
Board of Public Works
(Appointed by the Mayor)
Mayor James Brainard
Mary Ann Burke
Lori Watson
Carmel Audit Committee
(Appointed Officials)
Arnold Hanish, Chairman
Jo Biggers
Kevin “Woody” Rider
Michael N. Ruggiero
Ted A. Spearman
Carmel Redevelopment Authority
(Appointed Officials)
Robert Bush, President
Debra Zipes, Vice-President
John Getz, Secretary/Treasurer
Carmel Redevelopment Commission
(Appointed Officials)
David C. Bowers
Bill Brooks
Adam Campagna
William Hammer
Michael Kerschner
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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
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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, 2017, 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 pres-
entation 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 and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and 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 prep-
aration and fair presentation of the financial statements in order to design audit procedures that are appro-
priate 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.
21
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, 2017, 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's Discussion and Analysis, Schedule of Changes in Net OPEB Liability and Related Ratios,
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 Schedule - General Fund, and Budgetary
Comparison Schedule - 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 state-
ments, 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 col-
lectively comprise the City's basic financial statements. The accompanying Introductory Section, combining
nonmajor fund statements, other budgetary comparison 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 comparison 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 procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining nonmajor fund statements and other budgetary comparison
schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on it.
22
INDEPENDENT AUDITOR'S REPORT
(Continued)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated July 25,
2018, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters.
The purpose of that report is solely to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness
of the City's internal control over financial reporting or on compliance. That report is an integral part of an
audit performed in accordance with Government Auditing Standards in considering the City's internal
control over financial reporting and compliance.
Paul D. Joyce, CPA
State Examiner
July 25, 2018
23
Financial Highlights
Overview of the Financial Statements
City of Carmel, Indiana
MANAGEMENT DISCUSSION & ANALYSIS
For the Fiscal Year Ended December 31, 2017
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, 2017. 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
35 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 $401,178,636 (net position).
• The City's overall net position increased $8,434,757 from the prior fiscal year. The reasons for this overall increase 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 $278,864,318, an
increase of $863,634 in comparison with the prior year. Approximately $15,034,935 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 $16,838,607, or approximately 24.6% of total General Fund expenditures.
• The City's total outstanding long-term debt increased by $65,463,541 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.
24
The government-wide financial statements begin on page 35 of this report.
The basic governmental fund financial statements begin on page 37 of this report.
The basic proprietary fund financial statements begin on page 42 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, a 501(c)(4) corporation, and a statutory public improvement bond bank 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 funds.
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 sixty-three 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, 2017 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.
25
The fiduciary fund financial statements begin on page 47 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 292,375,828$
18,264,048
963,386,802
981,650,850
14,702,514
463,219,141
15,620,601
781,696,754
Governmental Activities
30,924,357
(83,269,698)
1,295,390,842
300,378,905$
762,128,279
1,062,507,184
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 49
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 $401,178,636 at the close of the fiscal
year.
2017
333,803,395$
(92,964,862)
401,178,636$
to its employees. Required supplementary information can be found beginning on page 86 of this report.
2,046,321
2,480,673
183,368,200
185,848,873
5,848,556
116,495,474
184,333,495
30,924,357
714,216,239
730,812,269
10,770,063
299,216,267
25,355,156
(35,777,877)
1,025,498,572
1,359,301,967
38,230,033
2017
9,527,697
2016
338,123,426$
957,267,415
39,166,660
19,076,703
897,584,439
916,661,142
Net investment in
capital assets
797,317,355
288,793,546$
2016
41,762,692$
260,372,611
302,135,303
16,618,619
415,711,741
25,355,156
(39,789,157)
401,277,741$
36,713,696
2016
296,360,734$
696,894,805
-
(4,011,279)
112,484,195$
344,721,169
263,370,293
296,794,783
1,516,337
2,643,447
181,690,048
(9,695,164)
108,802,808$
Total
2017
33,424,490$
Business-type Activities
5,174,817
118,497,972
-
993,255,539
37,120,339
16,596,030
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 105 of this report.
26
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
52,779,836$
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 increased $8,434,757 from the prior fiscal year. The reasons for this overall increase are discussed
in the following sections for governmental activities and business-type activities.
Notwithstanding the City’s ultimate liability for the ’25 and ’37 plans, the State of Indiana has established a practice of
appropriating funds to cover these benefits. The State of Indiana is not obligated to continue making these payments, but it has
done so every year since 2009. Consequently, the City has incurred no cost from its own resources to service these plans. Also, the
retiree healthcare plan is not a contractual obligation that extends beyond the current budget year. The liability is shown in the
statements because it has been the City’s consistent practice to provide this benefit. However, the City believes it is not legally
obligated to do so.
22,020,205$
10,642,270
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 $92,964,862.
10,676,665
9,781,191
The City reported significant negative unrestricted net position of $83,269,698 in governmental activities and negative unrestricted
net position of $9,695,164 in business activities, totaling $92,964,862. These deficits are due in part to unfunded pension and
retiree healthcare liabilities of $52.8 million, as follows:
(145,270)
Governmental Activities. During the current fiscal year, net position for governmental activities increased $10,849,933 from the
prior fiscal year for an ending balance of $292,375,828. The increase was less than one percent, indicating a relatively stable net
position.
(195,225)
(200) ‐ 200 400 600
Millions
City of Carmel
Net Position
December 31, 2017
Unrestricted Restricted Net investment in capital assets
27
The following chart displays Program Revenues and Expenses by function for the City's Governmental Activities.
The following chart displays the revenue composition for the City's Governmental Activities funds.
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
General government Public safety Streets,
infrastructure
Economic
development
Culture and
recreation
Interest on long‐term
debt
CITY OF CARMEL
Program Revenues vs. Expenses
Program Expenses Program Revenues
Property taxes 32.74%
Other taxes
45.38%
Charges for services 9.38%
Operating grants and
contributions
0.06%
Capital grants and
contributions
1.20%Other 11.24%
City of Carmel
Governmental Activities Revenue
28
City of Carmel's Changes in Net Position
REVENUES:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Property taxes
Other taxes
Other
Total revenues
EXPENSES:
General government
Public safety
Streets, infrastructure
Water distribution
Sewer collection
Stormwater drainage
Economic development
Culture and recreation
Interest on long-term debt
Other
Total expenses
Special item
Transfers
NET POSITION - beginning
Restatement
NET POSITION - ending
409,974,503
291,298,378
288,793,546$
154,257,210
392,743,879
401,178,636$ 292,375,828$
Change in net position
before special item and
transfers
1,606,319
108,802,808$ 401,277,741$
(7,267,651) (6,613,069) (481,995) (8,533,862) (7,095,064)
NET POSITION -
beginning, adjusted
288,793,546 297,911,447 112,484,195
769,837
-
65,551,375
17,932,242
18,217,810
-
10,122,290
-
5,545,855
706,935
Total
195,644,384
7,238,525
52,042,841
72,128,202
17,932,242
-
-
769,837
37,413,146
(711,899)
Governmental Activities
281,525,895
- -
8,434,757
-
112,651
2017
96,894
2016
13,387,122$
20162017
Increase (decrease) in
net position
2017
14,907,146$
96,894
1,906,397
52,042,841
72,128,202
17,861,658
158,943,137
30,372,875
41,085,416
25,476,391
-
-
16,711,747
45,892,499$
Business-type Activities
31,814,317
2016
2,509,453
-
(1,606,319)
111,581,061
112,484,195$
-
(1,703,277)
(2,415,176)
30,985,353$
-
5,332,128
-
-
383,766
36,701,247
-
865,258
150,146,058
30,984,884
40,267,560
12,340,719
(4,111,152)
(2,504,833)
29,019,069$
-
5,173,409
-
-
131,292
34,323,770
-
-
19,439,437
10,016,870
-
-
-
706,935
17,240,292
54,995,901
52,989,360
5,545,855
-
-
(1,601,699)
402,879,439
20,824,320
18,245,424
18,217,810
16,711,747
17,371,584
184,469,828
30,984,884
40,267,560
12,340,719
(1,266,211)
112,063,056 401,277,741
42,406,191$
112,651
6,038,667
52,989,360
65,551,375
186,071,527
19,439,437
10,451,835
187,209,627
8,434,757
-
149,796,481
9,146,656
-
1,703,277
10,849,933
(1,601,699)
30,372,875
41,085,416
-
25,476,391
111,217,984
20,824,320
10,451,835
-
-
903,134
10,016,870
54,995,901
10,122,290
- 5,367,154 1,651,075 5,367,154 1,651,075
29
Business-type Activities. For the City's business-type activities, overall net position decreased to an ending balance of
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
Governmental Funds. The focus of the City's governmental funds is to provide information on near-term inflows, outflows,
At December 31, 2017, the City's governmental funds reported combined fund balances of $278,864,318, an increase of $863,634
in comparison with the prior year. Approximately 5.4% of this amount, $15,034,935, 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 ($256,581,733), it is
committed for particular purposes ($5,443,978), or it is assigned for particular purposes ($1,803,672).
$108,802,808. The total decrease in net position for business-type activities (water, sewer, storm water, and other) was $2,415,176
or 2.2% from the prior fiscal year. The decrease is mainly attributable to increases in expenditures in the Sewer and Storm Water
Utilities.
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.
37,413,146 36,701,247
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
CITY OF CARMEL
Business-Type Revenues vs. Expenses
Expenses Revenues
Charges for services 84.43%
Capital grants and
contributions
14.53%
Other 1.05%City of Carmel
Business‐Type Activities Income
30
General Fund Budgetary Highlights
The 2017 Project Fund, a major fund, accounts for $70.9 million of bond proceeds, which is restricted for certain redevelopment
projects and road projects.
The Redevelopment Commission Fund, a major fund, accounts for tax increment revenue, which is restricted for certain economic
development projects. The fund had a $21,701,902 decrease in fund balance during the year, due primarily to the aquisition of
capital assets, which put the overall fund balance at $12,627,726.
The Redevelopment Authority Debt Service Fund, a major fund, had a $628,030 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 $19,534,852, all of
which was restricted for debt service.
The fund balance of the City's General Fund decreased by $138,675 during the year, reflecting a close balance of revenues and
expenditures.
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 $15,034,935 while the total fund balance was $16,838,607. 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 22.0% of total general fund expenditures while total fund balance represents 24.6% 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 $2,267,572, all of which was restricted for the purpose of
constructing and maintaining streets. During the year, fund balance decreased $1,750,845. The decrease in fund balance was due
to a planned increase in street-related spending during the year.
The Redevelopment Authority Capital Projects Fund, a major fund, had a $402,699 decrease in fund balance during the current
fiscal year, representing progress on construction projects. The ending balance was $1,448,712, 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 $8,528,071; for the Sewer Utility, it was an
excess of $393,407; for the Storm Water Utility, it was a deficit of $1,590,852; and for the nonmajor funds, it was an excess of
$30,352. Water Utility net position, before capital contributions and transfers, decreased $3,792,435. The Water Utility deficit and
decrease were due to unusually wet summers in 2015 through 2017, which drove down water sales during the grass-watering
season. Sewer Utility net position, before capital contributions and transfers, decreased $766,442, which is manageable.
Unrestricted net position of the Storm Water Utility decreased by $1,783,178, reflecting the current costs of a major bond issue.
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 $6,663,949,
primarily reserves to pay for interest during the period of construction, is restricted for economic development and drainage and
The 2016 Project Fund, a major fund, accounts for $160 million of bond proceeds, which is restricted for certain road projects.
31
The most significant differences between estimated revenues and actual revenues were as follows:
Revenue source
Property tax
Income tax
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Miscellaneous
Township joinder agreements
Total
The revenue excesses and shortfalls in the above revenue sources net to 2% and were not considered significant.
The differences by department between estimated expenditures and actual expenditures were as follows:
Department
Clerk-Treasurer
Mayor's Office
City Council
Board of Public Works
Administration
Brookshire Golf Course
Building Operations
City Court
Law Department
Community Services
Personnel/ Human Resources
Information Systems
City Property Maintenance
Public Affairs/ Community Relations
Fire Department
Police Department
Communication Center
Parks Department
Redevelopment Department
Street Department Special Project
Other
Total
Actual expenditures did not exceed final appropriations in any category.
1,520,992 1,520,992
- 336,081 336,081
3,217,620
648,208
24,183,413
20,075,752
2,797,860
23,752,117
19,185,385
2,681,889
(2,564,399)$
1,503,017 1,327,529 (175,488)
11,716,693 11,711,140
325,737
1,069,373
1,177,336
514,368
(55,124)
5,954,347
1,643,187
88,001,391$
2,422,023
(297,389)
Final General Fund Budget Compared to Actual Results
851,599
(47,637)
6,159,567
89,928,183$
(1,729,375)
38,992,443$
Estimated
Expenditures
Actual
Expenditures Difference
2,057,963 (518,165)
87,492,308$
3,146,313 (582,612)
492,975 443,951 (49,024)
466,731
2,801,284 379,261
881,067
1,052,318$
4,484,648
Final
(205,220)
(1,926,792)$
3,728,925
-
2,752,967 2,193,792 (559,175)
(213,550)
986,700 896,584 (90,116)
678,955 (202,112)
1,922,878
36,754,390
4,797,626
1,397,869$
1,856,737
574,918
Final Final
41,557$
-
33,665
(48,130)
Actual
Revenues
39,034,000$
Final
1,042,530
2,782,512
440,930
(431,296)
(890,367)
(115,971)
(435,108)
(207,278)
84,927,909$
(237,221)
1,366,762
Estimated
Revenues
1,097,654
2,791,258
2,576,128
672,052 434,831
Investment earnings, subfund
transactions, and other
Difference
(345,551)$
312,978
36,754,390
1,956,543
526,788
1,061,883
(5,553)
32
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 $830,568,814. Of this amount,
On December 13, 2017, the City issued $23,180,000 of its Local Option Income Tax Lease Rental Revenue Refunding Bonds,
Series 2017. The bonds were issued to refund certain obligations that were used to acquire capital assets. The City has pledged its
future distributions of local option income tax.
On October 7, 2017, the Water Utility issued $13,000,000 of its Junior Waterworks Refunding Bonds, Series 2017. The bonds
were issued to refund certain obligations that were used to acquire capital assets. The debt is backed by water user fee revenues.
-
1,078,791
167,742,025
2016
3,111,319$
Capital assets. The City's investment in capital assets for its governmental and business-type activities as of December 31,
-
166,767,112
2017
696,894,805$
2017, amounts to $1,025,498,572 (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 7.13%.
$602,907,914 is debt backed by an unlimited ad valorem property tax levy, $107,275,000 is debt backed by income tax,
$28,765,000 is debt backed by tax increment, and $166,242,607 is debt backed by utility revenues. The remainder of the City's
long-term obligations comprises post-employment benefit debt, compensated absences, contract purchases, and capital leases.
260,372,611$
2016
174,400,127$
61,402,665
762,128,279$
23,188,743
Long-term Debt. 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.
On November 15, 2017, the City issued, through its local public improvement bond bank, $56,495,000 of its Special Program
Bonds, Series 2017B-1 and B-2, and $17,415,000 of its Taxable Special Program Bonds, Series 2017C-1 and C-2. The Bonds
were issued in order to acquire capital assets; however, $3,336,794 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
$57,310,000 of the bonds, the City has also pledged its future distributions of county option income tax.
-
171,288,808$
2017
23,188,743
263,370,293$
286,814,285
-
187,955,451
-
19,321,443
3,476,884$
22,050,331
Governmental Activities Business-type Activities Total
22,778,886
292,766,966
166,767,112
71,172,737
957,267,415$
114,931,323
287,893,076
167,742,025
69,022,262
1,025,498,572$
187,955,451
92,880,992
174,765,692$
2016
171,288,808$
42,081,222
167,978,923
22,778,886
292,766,966
167,978,923
69,022,262
2017
71,172,737
33
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.
• 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.
714,931,924$
562,700
183,818,361$
721,688
35,698,856
898,750,285$
22,020,205
7,315,666
2016
603,071,360$
38,972,184
2016
169,313,074$
6,437,337
450,161
2,092,507
4,962,582
• The unemployment rate for the City was 2.8% at the close of the fiscal year, which is significantly below the national rate and
also below the rate of other communities nearby.
2017
830,568,814$
1,167,518
25,700,351
8,037,354
56,934,550
30,759,631
The following economic factors currently affect the City and were considered in developing the 2018 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 bond issuance received a rating of “AA” from Standard & Poor’s.
• 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 $65,463,541 (7.28%) during the current fiscal year.
782,055,920$
699,661
664,326,207$
2017
Bonds and contract
purchases
57,378,431
715,685
12,920,443
34,009,602
2016
772,384,434$
63,815,768
1,165,846
15,012,950
Unamortized bond
premium
2017
166,242,607$
6,106,383
467,857
3,680,146
4,939,225
Governmental Activities Business-type Activities Total
182,157,906$
6,836,403
63,040,933
964,213,826$
7,399,103
34
Governmental
Activities
Business-Type
Activities Total
Cash and investments 278,520,192$ 26,172,678$ 304,692,870$
Receivables (net of allowances for uncollectibles):
Accounts 462,653 740,974 1,203,627
Taxes 17,368,096 - 17,368,096
Intergovernmental 351,999 - 351,999
Other - 2,881,193 2,881,193
Internal balances 52,921 (52,921) -
Inventories - 622,398 622,398
Prepaid expenditures 3,282,549 91,250 3,373,799
Cash, restricted for debt service - 2,968,918 2,968,918
Net pension asset 340,495 - 340,495
Capital assets:
Not being depreciated: land, improvements, and construction in progress 264,169,800 25,527,215 289,697,015
Other capital assets, net of depreciation 497,958,479 237,843,078 735,801,557
Total assets 1,062,507,184 296,794,783 1,359,301,967
DEFERRED OUTFLOWS OF RESOURCES:
Bond refunding 23,694,252 - 23,694,252
Pensions 13,019,444 1,516,337 14,535,781
Total deferred outflows of resources 36,713,696 1,516,337 38,230,033
Accounts payable 3,092,462 746,328 3,838,790
Claims payable 479,159 - 479,159
Accrued payroll and withholdings payable 3,209,930 279,396 3,489,326
Compensated absences 699,661 467,858 1,167,519
Accrued interest payable 8,139,389 696,219 8,835,608
Customer deposits - 42,130 42,130
Rent paid in advance - 66,103 66,103
Other current payables - 345,413 345,413
Noncurrent liabilities:
Due within one year:
Bonds payable 21,570,855 5,111,670 26,682,525
Capital leases payable 2,020,087 201,866 2,221,953
Due in more than one year:
Bonds payable 699,689,902 167,237,320 866,927,222
Capital leases payable 5,295,579 519,821 5,815,400
Net pension liability 31,100,126 4,939,225 36,039,351
Other post-employment benefits 22,020,205 3,680,146 25,700,351
Total liabilities 797,317,355 184,333,495 981,650,850
DEFERRED INFLOWS OF RESOURCES:
Bond refunding and renegotiation 298,473 4,855,450 5,153,923
Pensions 9,229,224 319,367 9,548,591
Total deferred inflows of resources 9,527,697 5,174,817 14,702,514
Net investment in capital assets 344,721,169 118,497,972 463,219,141
Restricted:
General government 345,980 - 345,980
Public safety 2,035,444 - 2,035,444
Streets and other infrastructure 16,184,205 - 16,184,205
Economic development 107,889 - 107,889
Culture and recreation 12,250,839 - 12,250,839
Unrestricted (83,269,698) (9,695,164) (92,964,862)
Total net position 292,375,828$ 108,802,808$ 401,178,636$
LIABILITIES:
NET POSITION:
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
STATEMENT OF NET POSITION
December 31, 2017
ASSETS:
35
Expenses
Governmental
Activities
Business-Type
Activities Total
FUNCTIONS/PROGRAMS:
Governmental activities:
General government 30,372,875$ 211,995$ -$ -$ (30,160,880)$ -$ (30,160,880)$
Public safety 41,085,416 1,726,580 96,894 - (39,261,942) - (39,261,942)
Streets and other infrastructure 25,476,391 98,090 - 1,906,397 (23,471,904) - (23,471,904)
Economic development 16,711,747 52,093 - - (16,659,654) - (16,659,654)
Culture and recreation 17,932,242 12,818,388 - - (5,113,854) - (5,113,854)
Unallocated interest expense 18,217,810 - - - (18,217,810) - (18,217,810)
Total governmental activities 149,796,481 14,907,146 96,894 1,906,397 (132,886,045) - (132,886,045)
Business-type activities:
Water 20,824,320 16,982,790 - 4,995,765 - 1,154,235 1,154,235
Sewer 10,451,835 9,638,861 - 336,363 - (476,611) (476,611)
Storm Water 5,367,154 3,295,837 - - - (2,071,317) (2,071,317)
Other 769,837 1,067,865 - - - 298,028 298,028
Total business-type activities 37,413,146 30,985,353 - 5,332,128 - (1,095,665) (1,095,665)
TOTAL PRIMARY GOVERNMENT 187,209,627$ 45,892,499$ 96,894$ 7,238,525$ (132,886,045) (1,095,665) (133,981,710)
GENERAL REVENUES AND TRANSFERS:
Property tax 52,042,841 - 52,042,841
Income tax 41,801,838 - 41,801,838
Other taxes 30,326,364 - 30,326,364
Unrestricted investment earnings 2,339,501 383,766 2,723,267
Other 15,522,157 - 15,522,157
Transfers 1,703,277 (1,703,277) -
Total general revenues and transfers 143,735,978 (1,319,511) 142,416,467
CHANGE IN NET POSITION 10,849,933 (2,415,176) 8,434,757
NET POSITION: beginning 288,795,551 112,395,329 401,190,880
Restatement (7,269,656) (1,177,345) (8,447,001)
NET POSITION: beginning, adjusted 281,525,895 111,217,984 392,743,879
NET POSITION: ending 292,375,828$ 108,802,808$ 401,178,636$
City of Carmel, Indiana
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended December 31, 2017
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
36
General FundBond Bank Project FundRedevelopment Commission Fund2016 Project Fund2017 Project FundRedevelopment Authority Debt Service FundRedevelopment Authority Capital Projects FundMotor VehicleHighway FundTotal Nonmajor FundsTotalASSETS:14,645,716$ 6,663,949$ 12,764,779$ 99,887,794$ 70,945,000$ 19,534,852$ 1,448,712$ 3,089,394$ 49,539,996$ 278,520,192$ Receivables:Taxes:Property 1,340,422 - - - - - - 239,786 217,605 1,797,813 Income15,570,283 - - - - - - - - 15,570,283 Accounts314,492 - - - - - - - 148,161 462,653 Intergovernmental- - - - - - - 351,999 - 351,999 Due from related utility- 52,921 - 52,921 TOTAL ASSETS31,870,913 6,663,949 12,764,779 99,887,794 70,945,000 19,534,852 1,448,712 3,734,100 49,905,762 296,755,861 LIABILITIES:Accounts payable1,909,862 - 137,053 - - - - 852,423 193,124 3,092,462 Claims payable- - - - - - - - 479,159 479,159 2,593,311 - - - - - - 374,319 242,300 3,209,930 Total liabilities4,503,173 - 137,053 - - - - 1,226,742 914,583 6,781,551 DEFERRED INFLOWS OF RESOURCES:Unavailable revenue10,529,133 - - - - - - 239,786 341,073 11,109,992 FUND BALANCES:Restricted:General government- 40,208 - - - - - - 345,980 386,188 Public safety- - - - - - - - 2,976,175 2,976,175 Highways and streets- - - 99,887,794 54,845,000 8,306,070 - 2,267,572 26,776,143 192,082,579 Drainage and other capital assets- 3,799,825 - - - - - - 749,102 4,548,927 Economic development- 2,823,916 12,627,726 - 16,100,000 6,381,663 1,448,712 - 107,889 39,489,906 Culture and recreation- - - - - 4,847,119 - - 12,250,839 17,097,958 Committed:General government- - - - - - - - 4,254,417 4,254,417 Public safety- - - - - - - - 725,687 725,687 Highways and streets- - - - - - - - 444,740 444,740 Economic development- - - - - - - - 19,134 19,134 Assigned:General government1,094,080 - - - - - - - - 1,094,080 Public safety605,846 - - - - - - - - 605,846 Economic development11,016 - - - - - - - - 11,016 Culture and recreation92,730 - - - - - - - - 92,730 Unassigned15,034,935 - - - - - - - - 15,034,935 Total fund balances16,838,607 6,663,949 12,627,726 99,887,794 70,945,000 19,534,852 1,448,712 2,267,572 48,650,106 278,864,318 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES31,870,913$ 6,663,949$ 12,764,779$ 99,887,794$ 70,945,000$ 19,534,852$ 1,448,712$ 3,734,100$ 49,905,762$ 296,755,861$ City of Carmel, IndianaBALANCE SHEETGOVERNMENTAL FUNDSDecember 31, 2017Cash and investmentsAccrued payroll and withholdings payableThe notes to the financial statements are an integral part of this statement.37
Fund Balance - governmental funds 278,864,318$
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.3,282,549
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds:
Land and construction in progress 264,169,800$
Machinery, equipment, and vehicles 661,890,915
Accumulated depreciation (163,932,436) 762,128,279
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 1,797,813$
Income tax 9,011,368
Cable fees -
Ambulance fees 123,468
Supplemental ambulance fees 177,343 11,109,992
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 (31,100,126)$
Other post-employment benefit liability (22,020,205) (53,120,331)
The net pension asset is not an available resource and, therefore, is not reported in the funds.340,495
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 23,694,252$
Unamortized inflows on bond refunding and defeasement (298,473)
Pension-related inflows (9,229,224)
Pension-related outflows 13,019,444 27,185,999
Other noncurrent liabilities are not due and payable in the current period and, therefore, are not
reported in the funds:
Compensated absences 699,661$
Accrued interest payable 8,139,389
Unamortized value of capital leases 7,315,666
Unamortized premiums on bonds outstanding 56,934,550
Unamortized principal on bonds outstanding 664,326,207 (737,415,473)
Net position of governmental activities 292,375,828$
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, 2017
38
General FundBond Bank Project FundRedevelopment Commission Fund2016 Project Fund2017 Project FundRedevelopment Authority Debt Service FundRedevelopment Authority Capital Projects FundMotor Vehicle Highway FundTotal Nonmajor FundsTotalREVENUES:Property tax39,034,000$ -$ -$ -$ -$ -$ -$ 5,577,083$ 7,648,861$ 52,259,944$ Income tax37,187,574 - - - - - - - - 37,187,574 Other local tax3,411,812 - 25,417,149 - - - - 613,129 884,274 30,326,364 Charges for services1,061,883 - 52,093 - - - - - 13,793,170 14,907,146 Investment income225,834 95,845 163,165 1,475,466 - 42,350 9,256 - 327,585 2,339,501 Licenses and permits2,473,589 - - - - - - - 17,260 2,490,849 Fines and forfeits466,731 - - - - - - - - 466,731 Intergovernmental:Grants- - - - - - - - 1,710,058 1,710,058 State shared revenue796,967 - - - - - - 354,891 1,584,438 2,736,296 Other2,818,322 3,177,439 - 5,995,761 Contributions - - - - - - - - 262,116 262,116 Other932,063 1,000 1,701,262 - - 956,728 - 241 745,516 4,336,810 Total revenues88,408,775 96,845 27,333,669 1,475,466 - 999,078 9,256 9,722,783 26,973,278 155,019,150 EXPENDITURES:Current:General government21,833,243 - - - - - - - 7,700,507 29,533,750 Public safety37,494,284 - - - - - - - 2,767,529 40,261,813 Streets and other infrastructure2,421,604 - - - - - - 10,836,993 - 13,258,597 Economic development404,153 721,209 86,194 - - - - - 107,918 1,319,474 Culture and recreation4,028,696 - - - - - - - 8,909,830 12,938,526 Debt service:Principal1,530,000 - 1,045,000 - - 15,599,576 - - 634,000 18,808,576 Interest178,059 7,647,329 2,128,683 - - 16,191,205 - - 543,588 26,688,864 Capital outlay:General government343,995 - - - - 263,851 - - 99,677 707,523 Public safety128,307 - - - - - - - 1,199,424 1,327,731 Streets and other infrastructure- - - 44,229,229 - - 411,897 47,217 15,450,190 60,138,533 Economic development 9,367 3,853,774 27,237,373 - - - - - 3,037,706 34,138,220 Culture and recreation18,435 - - - - - - - 728,889 747,324 Total expenditures68,390,143 12,222,312 30,497,250 44,229,229 - 32,054,632 411,897 10,884,210 41,179,258 239,868,931 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES20,018,632 (12,125,467) (3,163,581) (42,753,763) - (31,055,554) (402,641) (1,161,427) (14,205,980) (84,849,781) Continued on next page.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 201739
General FundBond Bank Project FundRedevelopment Commission Fund2016 Project Fund2017 Project FundRedevelopment Authority Debt Service FundRedevelopment Authority Capital Projects FundMotor Vehicle Highway FundTotal Nonmajor FundsTotalOTHER FINANCING SOURCES AND (USES):Bond issuance - principal- 81,315,000 - - - 43,423 - - - 81,358,423 Bond issuance - premium - 3,334,569 - - - - - - - 3,334,569 Proceeds - refunding principal--- - - 23,180,000 - - - 23,180,000 Proceeds - capital leases--- - - - - - 2,638,693 2,638,693 Payment to refunded bond escrow agent--- - - (26,501,547) - - - (26,501,547) Transfers in, governmental funds25,800 - 716,267 180,148 70,945,000 35,677,916 - - 19,392,004 126,937,135 Transfer in (out) from (to) enterprise funds808,567 - 225,000 17,929 - - - 651,781 - 1,703,277 Transfers out, governmental funds(20,991,674) (77,292,692) (19,479,588) (187,629) - (716,208) (58) (1,241,199) (7,028,087) (126,937,135) Total other financing sources and uses(20,157,307) 7,356,877 (18,538,321) 10,448 70,945,000 31,683,584 (58) (589,418) 15,002,610 85,713,415 NET CHANGES IN FUND BALANCES(138,675) (4,768,590) (21,701,902) (42,743,315) 70,945,000 628,030 (402,699) (1,750,845) 796,630 863,634 FUND BALANCES: beginning16,977,282 11,432,539 34,329,628 142,631,109 - 18,906,822 1,851,411 4,018,417 47,853,476 278,000,684 FUND BALANCES: ending16,838,607$ 6,663,949$ 12,627,726$ 99,887,794$ 70,945,000$ 19,534,852$ 1,448,712$ 2,267,572$ 48,650,106$ 278,864,318$ 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, 2017(Continued)40
863,634$
Capital outlays 82,324,879$
Depreciation expense (17,091,404)
65,233,475
Decrease (increase) in bonds payable (61,254,847)$
Amortization of certain bond-related prepaid expense and deferred inflows and outflows 3,665,661
Amortization of premium on bonds outstanding 3,778,451
Bond issuance premium (3,334,569)
Principal payments on capital leases 2,159,430
Capital lease proceeds (2,638,693)
Compensated absences 16,024 (57,608,543)
Property tax (217,103)$
Income tax 4,614,264
Cable fees (274,960)
Ambulance fees (150,750)
Ambulance fee supplemental (47,464) 3,923,987
Expenses in the Statement of Activities for pension and other post-employment benefits are not recognized
as expenditures in the funds:
1925 Police Officers' plan 189,887$
1937 Firefighters' plan 176,329
1977 Firefighters' plan 281,431
1977 Police Officers' plan 214,073
Civilian public employee retirement plan (752,692)
Other post-employment benefits - retiree health insurance (1,830,106) (1,721,078)
158,460
Change in net assets of governmental activities (Statement of Activities)10,849,933$
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.
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:
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, 2017
41
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
ASSETS:
Current assets:
Cash and investments -$ 78,940$ 25,900,226$ 193,512$ 26,172,678$
Accounts receivable (net of allowance)175,575 200,169 361,154 4,076 740,974
Other receivables 1,595,079 1,286,114 - - 2,881,193
Due from associated utility - 742,327 264,605 - 1,006,932
Inventories 295,802 326,596 - - 622,398
Prepaid items 15,625 75,625 - - 91,250
Total current assets 2,082,081 2,709,771 26,525,985 197,588 31,515,425
Noncurrent assets:
Restricted cash, debt service 68,623 2,900,295 - - 2,968,918
Other - - - - -
Capital assets:
Land, improvements to land and
construction in progress 12,392,862 5,176,774 7,957,579 - 25,527,215
Utility plant in service, net of depreciation 167,742,025 69,022,262 1,078,791 - 237,843,078
Total noncurrent assets 180,203,510 77,099,331 9,036,370 - 266,339,211
Total assets 182,285,591 79,809,102 35,562,355 197,588 297,854,636
DEFERRED OUTFLOW OF RESOURCES: pension 800,189 716,148 - - 1,516,337
Continued on next page.
December 31, 2017
PROPRIETARY FUNDS
STATEMENT OF NET POSITION
City of Carmel, Indiana
Business-Type Activities - Enterprise Funds
42
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
LIABILITIES:
Current liabilities:
Accounts payable 458,775$ 264,761$ -$ 22,792$ 746,328$
Accrued wages payable 150,981 128,415 - - 279,396
Compensated absences 262,966 204,892 - - 467,858
Due to associated governmental funds - - 52,921 - 52,921
Due to associated utility 1,006,932 - - - 1,006,932
Customer deposits 42,130 - 42,130
Rent paid in advance - - - 66,103 66,103
Revenue bonds payable, current portion 2,797,000 1,288,670 1,026,000 - 5,111,670
Capital leases payable, current portion 106,800 95,066 - - 201,866
Accrued interest payable 608,185 88,034 - - 696,219
Other 267,072 - - 78,341 345,413
Total current liabilities 5,700,841 2,069,838 1,078,921 167,236 9,016,836
Noncurrent liabilities:
Bonds payable 116,560,305 17,285,665 33,391,350 - 167,237,320
Capital leases payable 364,727 155,094 - - 519,821
Retiree health care 1,927,700 1,752,446 - - 3,680,146
Pension liability 2,606,488 2,332,737 - - 4,939,225
Total noncurrent liabilities 121,459,220 21,525,942 33,391,350 - 176,376,512
Total liabilities 127,160,061 23,595,780 34,470,271 167,236 185,393,348
DEFERRED INFLOW OF RESOURCES
Pension 168,534 150,833 - - 319,367
2008 bond call rights waiver 4,855,450 - - - 4,855,450
Total deferred inflow of resources 5,023,984 150,833 - - 5,174,817
NET POSITION:
Net investment in capital assets 59,429,806 56,385,230 2,682,936 - 118,497,972
Unrestricted (8,528,071) 393,407 (1,590,852) 30,352 (9,695,164)
Total net position 50,901,735$ 56,778,637 1,092,084$ 30,352$ 108,802,808$
PROPRIETARY FUNDS
Business-Type Activities - Enterprise Funds
December 31, 2017
STATEMENT OF NET POSITION
City of Carmel, Indiana
(Continued)
The notes to the financial statements are an integral part of this statement.
43
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
OPERATING REVENUES:
Residential sales 12,432,431$ 4,929,177$ -$ -$ 17,361,608$
Commercial and industrial sales 4,025,664 4,709,684 - - 8,735,348
Stormwater fees - - 3,295,837 - 3,295,837
Rent - - - 56,954 56,954
Other operating revenue 524,695 - - 1,010,911 1,535,606
Total operating revenues 16,982,790 9,638,861 3,295,837 1,067,865 30,985,353
OPERATING EXPENSES:
Source of supply and expense - operation and maintenance 921,759 - - - 921,759
Water treatment expense - operation and maintenance 3,599,951 - - - 3,599,951
Building maintenance operating expenses - - - 769,837 769,837
Drainage projects - - 3,945,590 - 3,945,590
Transmission and distribution 3,973,983 - - - 3,973,983
Collection system - operations and maintenance - 1,087,944 - - 1,087,944
Pumping - operations and maintenance - 333,469 - - 333,469
Treatment and disposal expense - operation and maintenance - 3,536,848 - - 3,536,848
Customer accounts 696,704 609,910 - - 1,306,614
Administration and general 881,103 1,089,169 - - 1,970,272
Payroll tax expense 257,176 229,874 - - 487,050
Utility receipts tax expense 239,708 - - - 239,708
Depreciation expense 4,109,922 2,627,427 54,762 - 6,792,111
Other 465,561 413,347 - - 878,908
Total operating expenses 15,145,867 9,927,988 4,000,352 769,837 29,844,044
OPERATING INCOME (LOSS)1,836,923 (289,127) (704,515) 298,028 1,141,309
NONOPERATING REVENUES (EXPENSES):
Interest and investment revenue 49,095 46,532 288,139 - 383,766
Miscellaneous revenue 303,084 11,941 - - 315,025
Amortization of call rights waiver - - - -
Interest expense (5,901,623) (538,490) (1,366,802) - (7,806,915)
Gain (loss) from disposition of property (79,914) (7,089) - - (87,003)
Other 9,791 - - 9,791
Total nonoperating revenue (expenses)(5,629,358) (477,315) (1,078,663) - (7,185,336)
CHANGE IN NET POSITION BEFORE CONTRIBUTIONS (3,792,435) (766,442) (1,783,178) 298,028 (6,044,027)
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital contributions 4,995,765 336,363 - - 5,332,128
Transfers to associated city - (808,567) (669,710) (225,000) (1,703,277)
Total capital contributions and transfers 4,995,765 (472,204) (669,710) (225,000) 3,628,851
CHANGE IN NET POSITION 1,203,330 (1,238,646) (2,452,888) 73,028 (2,415,176)
NET POSITION: beginning 50,312,926 58,580,107 3,544,972 (42,676) 112,395,329
Restatement (614,521) (562,824) - - (1,177,345)
NET POSITION: beginning, adjusted 49,698,405 58,017,283 3,544,972 (42,676) 111,217,984
TOTAL NET POSITION: ending 50,901,735$ 56,778,637$ 1,092,084$ 30,352$ 108,802,808$
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Business-Type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
For the Fiscal Year Ended December 31, 2017
City of Carmel, Indiana
PROPRIETARY FUNDS
44
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 17,437,315$ 9,800,501$ 3,271,216$ 1,134,747$ 31,643,779$
Payments for goods and services (5,047,078) (2,163,557) (3,945,591) (759,220) (11,915,446)
Payments to employees (5,265,765) (4,780,174) - - (10,045,939)
Other receipts 606,767 21,224 - - 627,991
Net cash provided (used) by operating activities 7,731,239 2,877,994 (674,375) 375,527 10,310,385
Capital contributions 2,207,515 262,103 - - 2,469,618
Acquisition and construction of capital assets (1,977,276) (829,045) (4,233,074) - (7,039,395)
Payment of capital debt, including refunded debt (14,600,658) (1,254,484) (2,187,229) - (18,042,371)
Interest paid on debt (4,580,106) (606,839) (1,366,802) - (6,553,747)
Proceeds from sale of equipment 546 - - - 546
Proceeds from sale of refunding revenue bonds 13,000,000 - - - 13,000,000
Net cash provided by capital
and related financing activities (5,949,979) (2,428,265) (7,787,105) - (16,165,349)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 49,094 46,531 288,139 - 383,764
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Cash flow provided by associated city (3,284,435) - - - (3,284,435)
Transfers to governmental funds - (808,567) (672,039) (225,000) (1,705,606)
Net cash provided (used) by noncapital financing activities (3,284,435) (808,567) (672,039) (225,000) (4,990,041)
NET INCREASE IN CASH AND CASH EQUIVALENTS (1,454,081) (312,307) (8,845,380) 150,527 (10,461,241)
CASH AND CASH EQUIVALENTS: beginning 1,522,704 3,291,542 34,745,606 42,985 39,602,837
CASH AND CASH EQUIVALENTS: ending 68,623$ 2,979,235$ 25,900,226$ 193,512$ 29,141,596$
Continued on next page.
STATEMENT OF CASH FLOWS
City of Carmel, Indiana
For the Fiscal Year Ended December 31, 2017
PROPRIETARY FUNDS
CASH FLOWS FROM CAPITAL AND
RELATED FINANCING ACTIVITES:
Business-Type Activities - Enterprise Funds
45
Water Utility Sewer Utility Storm Water Nonmajor
Total
Enterprise
RECONCILIATION OF OPERATING INCOME (LOSS) TO
Operating income (loss)1,836,923 (289,127) (704,515) 298,028 1,141,309
income (loss) to net cash provided (used)
Depreciation expense 4,109,922 2,627,427 54,762 - 6,792,111
Nonoperating income (expense)303,085 11,941 - - 315,026
(Increase) decrease in assets:
Accounts receivable 79,171 47,864 239,983 (4,076) 362,942
Other 679,037 342,170 - 70,958 1,092,165
Interfund receivables - (60,988) (264,605) - (325,593)
Inventories (35,192) (26,814) - - (62,006)
Prepaid items 170,728 248,663 - - 419,391
Increase (decrease) in liabilities:
Accounts payable 297,228 (48,730) - 6,978 255,476
Wages payable 8,076 2,284 - - 10,360
Compensated absence payable 11,413 6,283 - - 17,696
Retiree health care 220,987 189,308 - - 410,295
Pension 224,574 224,038 - - 448,612
Other current liabilities (174,713) (396,325) - 3,639 (567,399)
Total adjustments 5,894,316 3,167,121 30,140 77,499 9,169,076
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 7,731,239$ 2,877,994 (674,375)$ 375,527$ 10,310,385$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:
Contributions of capital assets and aid in construction 2,763,142$ 74,260 -$ -$ 2,837,402$
The notes to the financial statements are an integral part of this statement.
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended December 31, 2017
PROPRIETARY FUNDS
STATEMENT OF CASH FLOWS
City of Carmel, Indiana
()
ACTIVITIES:
Adjustments to reconcile operating
by operating activities:
(Continued)
46
Pension Trust
Funds Agency Funds
ASSETS:
Cash and investments $ 173,498 $ 132,524
Receivable from State of Indiana 94,732
Total assets 268,230 132,524
LIABILITIES:
Payroll withholdings 94,732 -
Court escrow - 132,524
Total liabilities 94,732 132,524$
NET POSITION: restricted for pensions 173,498$
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2017
47
Pension Trust
Funds
ADDITIONS:
State of Indiana contributions 1,134,577$
Investment income 1,106
Miscellaneous revenue -
Total additions 1,135,683
DEDUCTIONS:
Benefits to plan members and beneficiaries 1,135,134
Administrative expenses 5,896
Total deductions 1,141,030
NET INCREASE IN NET POSITION (5,347)
NET POSITION: beginning 178,845
NET POSITION: ending - restricted for pensions 173,498$
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, 2017
48
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, 2017, 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 within the 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, 2017
49
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,
integral parts 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 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 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 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.
The 2017 Project Fund is used to account for the expenditure of proceeds of certain 2017 bond issuances, the purposes of which were
to finance street improvement and construction and economic development.
50
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
Investments are reported at fair value.
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 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.
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.
51
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
6. Deferred Outflows/Inflows of Resources
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.
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.
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.
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.
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.
52
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.
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):
• 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.
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. The former category
includes the current value of renegotiated terms of certain bonds, particularly the waiving of call rights on certain bonds. Such
renegotiation does not constitute refunding per se but has a similar economic and accounting effect.
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 expenses of the current period. These credit enhancement costs are amortized on a straight-
line basis over the term of the related debt.
53
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
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.
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.
• 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.
54
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
The 2016 Property Tax Bond Fund, a nonmajor debt service fund, had a negative net position of $16,258 as of December 31, 2017.
The negative position occurred because property tax collections fell short of the property tax levy. The City has increased the 2018
levy for that fund in order to compensate.
The Illinois Street Construction Fund, a nonmajor capital projects fund, had a negative net position of $58,869 as of December 31,
2017. The negative position occurred because a transfer from the General Fund, appropriated for 2017, was never executed. The
transfer is expected to be made in 2018.
The City's total cash deposits at December 31, 2017, were $307,661,788, of which $2,968,918 is restricted and $304,692,870 is
unrestricted. The City's cash deposits are insured up to $250,000 at financial institutions insured by the Federal Deposit Insurance
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. Before May 2 of each year, the Indiana Department of Revenue
determines if the accumulated balance that was held in trust on December 31 two years preceding the determination exceeds fifteen
percent (15%) of the certified distribution to be made to the county in the determination year. If so, the excess is distributed to the
County Auditor in May of the determination 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.
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.
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 Water Utility administers several cash accounts, including an operating cash account and several restricted cash accounts. The
restrictions relate mostly to agreements with bond holders. As of December 31, 2017, the operating cash account was in a deficit
position of $1,450,833. For reporting purposes, the negative operating cash balance is offset against restricted cash accounts.
Accordingly, a net balance of $68,623 of restricted cash is shown on the Statement of Net Position of the Water Fund.
55
Investments
It is the policy of the City to invest public funds for terms up to five years.
Below is a segmented time distribution for the City's debt investments at December 31, 2017:
Investment Type
United States Treasury notes
U.S. Gov't Money Market Funds
Total
B. Receivables and Transfers
1. Receivables
Revenue Source
Property taxes
Income taxes
Other
Intergovernmental
Due from utility
Total
52,921
-
351,999
52,921
644,706$
Vehicle
Motor
Nonmajor
217,605$
-
148,161
-
-
365,766$
-
8,660,651$
1,981,717
28,191,300$
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.
General
-
351,999
18,235,669$
-$
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.
Investments are valued at fair value. Fair value of substantially all investments is determined according to published, quoted prices for
similar assets in active markets, observable for the entire term of the asset. Accordingly, investments are classified in level two of the
hierarchy of fair value.
1,340,422$
15,570,283
314,492
-
-
17,225,197$
Highway
239,786$
-
Investment Maturities (in Years)
More than 5
-$
1 to 5
8,660,651$
Less than 1
19,530,649$
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 investments and other cash and cash equivalents held by the City.
Receivables at December 31, 2017, for governmental activities of the City's individual major governmental funds and nonmajor
governmental funds, in the aggregate, consisted of the following:
1,981,717
30,173,017$
Total
Fair Value
1,797,813$
462,653
15,570,283
The City has no deposits or investments denominated in foreign currencies and does not foresee having any foreign currency risk in
the future.
21,512,366$
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.
56
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
2. Transfers
a) Transfers among Governmental Funds
Transfers out
General
Bond Bank
RDC
2016 Projects
RDA Debt
RDA Projects
MVH
Nonmajor
Total
A nonmajor fund transferred $25,800 from a FEMA grant to the General Fund for additional fire training classes.
The Redevelopment Commission Fund transferred $47,500 to the 2016 Projects Fund to cover professional fees.
A nonmajor fund transferred $132,648 from an Indiana Department of Transportation grant to the 2016 Projects Fund for
street projects.
The 2016 Projects Fund transferred $43,041 to the RDA Debt Service Fund to pay for investment fees.
-
-
-
716,208
-
-
-
The General Fund, the Redevelopment Commission, and nonmajor funds made lease payments to the Redevelopment Authority in the
amounts of $9,989,312, $19,432,088, and $6,213,476, respectively, in order to satisfy debt service payments.
7,028,087
126,937,135$
58
Storm Water
Utility
-
1,241,199
656,163
Total
4,076$
264,605
1,770,654$
187,629
-
180,148$
-
- -
4,076$
Total
3,622,167$
742,327
11,002,362$
-
-$
-
2,228,610$ 625,759$
177,343
361,154$
716,208
132,648
1,006,932
4,629,099$
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, 2017, for business-type activities of the City's individual major enterprise funds, in the aggregate,
consisted of the following:
1,241,199
2016 Projects
Redevelopment
Commission
-$
Transfers In
-
-
1,797,813$
716,208$
Total
20,991,674$
77,292,692
19,479,588 47,500
Utility
1,770,654$
Sewer
Utility
19,392,004$
-
-
-
1,486,283$
9,011,368
123,468
-
11,109,992$
Unavailable
Revenue
Water
Nonmajor
6,347,692
-
144,588
2017 Projects
-$
70,945,000
-
-
-
70,945,000$
General
-$
-
-
-
-
-
-
25,800
25,800$
RDA Debt
Service
9,989,312$
-
19,432,088
43,041
-
58
-
6,213,476
35,677,975$
The RDA Debt Service Fund transferred $716,208 of unused reserve funds to the Redevelopment Commission Fund.
The Bond Bank Fund issued debt and transferred proceeds to the 2017 Projects Fund in the amount of $70,945,000, and to a nonmajor
fund in the amount of $6,347,692.
The RDA Capital Projects Fund transferred $58 of remaining sinking account monies to the RDA Debt Service Fund in accordance
with a trust indenture.
57
The General Fund transferred $3,843,535 to a nonmajor fund to pay for local road and street projects.
The 2016 Projects Fund transferred $144,588 to nonmajor funds to pay for project invoices.
Nonmajor funds transferred $27,458 to other nonmajor funds to cover cash flow.
b) Transfers between Governmental and Enterprise Funds
Redevelopment
From (to):
C. Capital Assets
Governmental Activities:
Capital assets, not being depreciated
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation, for
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
3,435,951 (1,032,073) 21,968,648
171,288,808$
The Sewer Fund transferred $808,567 of available excess cash to the General Fund.
The Storm Water Fund transferred $651,781 to the Motor Vehicle Highway Fund in compliance with a City ordinance and $17,929 of
excess cash to the 2016 Project Fund.
The General Fund, the Motor Vehicle Highway Fund, and nonmajor funds made transfers to a nonmajor fund in the amounts of
$7,158,827, $1,241,199, and $628,705, respectively, to cover cash flow.
(20,353,038)
661,890,914
29,642,391
213,370,030 71,152,808
19,564,770
General
- - - Nonmajor Enterprise Fund
MVH
-$
651,781
651,781$
2016 Project
-$
17,929
17,929$
71,152,808
Balance Additions/
Transfers In (Out)
-
Deletions/ Balance
395,719,817 3,415,864
-$ -$ 171,288,808$
Dec 31, 2016 Transfers In Transfers Out Dec 31, 2017
483,524,775
- 399,135,681
193,334,406 24,263,436
631,397,878
9,368,545
Commission
31,547,126
(1,032,073) 163,932,435
25,355,483 4,286,908
102,952,851
-
Total
808,567$
85,608,530$
14,455,722 (22,017) 497,958,479
(20,353,038) 92,880,992
(20,375,055)$
Total 808,567$
669,710
225,000
1,703,277$
264,169,800
Capital asset activity for Governmental Activities for the year ended December 31, 2017, was as follows:
225,000$
- 217,597,842
42,343,655 3,867,826 (1,054,090)
696,894,805$
225,000
808,567$
-
-$
Nonmajor enterprise funds transferred $225,000 to the Redevelopment Commission as a grant.
42,081,222
Sewer Fund
Storm Water Fund
-
45,157,391
(1,054,090)
112,321,396
147,873,103 17,091,404
762,128,279$
58
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
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, 2017:
Governmental Activities:
Bonds and contract purchases
Unamortized bond premium
Capital leases
Subtotal
Portion of above due within one year
Portion of capital leases payable due in more than one year
Bonds payable due in more than one year
(50,007,814)$
6,645,857$ 260,372,611$
Balance Due Within
Dec 31, 2016
603,071,360$
Additions
(3,648,175)$ 263,370,293$
Depreciation expense was charged as follows for the year ended December 31, 2017:
237,939,849 35,149
Balance Additions/ Deletions/ Balance
Dec 31, 2016 Transfers In Transfers Out Dec 31, 2017
Reductions
(43,283,576)$ 104,538,423$
-$
Capital asset activity for Business-Type Activities for the year ended December 31, 2017, was as follows:
6,836,403 2,638,693 (2,159,430) 7,315,666 2,020,087
316,507,243 6,827,260 (828,637)
(786,358)
365,565$
256,844$
Depreciation
Expense
4,748,295
88,052
1,631,650
10,366,563
17,091,404
6,792,111
6,792,111
23,883,515$
57,378,431 3,334,569 (3,778,450) 56,934,550 -
667,286,194 110,511,685 (49,221,456) 728,576,423 23,590,942
3,476,884$
19,321,443
(131,920) 237,843,078
One Year
715,685
668,001,879$
Less,
664,326,207$
699,661
22,432,762 6,610,708 (3,516,255) 25,527,215
22,050,331
24,290,603$
Balance
Dec 31, 2017
322,505,866
3,111,319$
6,245,143 (3,516,255)
21,570,855$
699,661
729,276,084
24,290,603
770,334
111,282,019$
Compensated absences
Total bonds, contract purchases,
capital leases, and compensated
absences
699,689,902$
316,507,243 6,827,260 (828,637) 322,505,866
78,567,394 6,792,111 (696,717) 84,662,788
5,295,579
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 within one year
Portion of capital leases payable due in more than one year
Bonds payable due in more than one year
Governmental Activities Long-Term Debt:
30,720,000
2024
(18,486,384)$
15,495,000$
115,900,000
52,355,000
6,535,000
19,649,150*
6,415,000
(1,254,484)$
5.800%-
8.450%
Lease Rental Revenue
Bonds of 2005 (unrefunded
portion)
36,452,914 2005 2026
28,827,000 1,026,000
Additions Reductions Dec 31, 2017
2.625%-
4.000%
1.190%-
3.000%
450,161
107,658,517
13,037,276
520,722
178,672,565$
19,806,574$
562,700
49,886
(17,850)
-$
(1,893,000)
(1,795,000)
(13,037,276)
334,658
-
(18,310,714) 172,348,990
5,111,670
(294,229) 5,590,350
(11,182)
1,391
467,857
2,285,000
512,000
1,288,670$
201,866
2035
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.
Interest Rate
Less,
Redevelopment District
Bonds of 2013
Lease Rental Revenue
Multipurpose Bonds, Series
2012A
38,704
(16,459)
467,857
105,863,517
13,000,000
493,788
18,552,090$
13,000,000
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:
5.000%
5,111,670
2012 2038
2012 2025
-
(26,934)
Balance Balance Due Within
Original
Amount
Amount
Outstanding
519,822
167,237,320$
173,538,535
2.000%-
4.000%
115,900,000
69,245,000
Lease Rental Revenue
Multipurpose Bonds, Series
2012B
Year of
Issue
Year of
Maturity
25,190,000$
(175,670)
5,781,393$
5,781,393
2011
5,884,579 -
2013
13,000,000
-
13,352,354$
Total business-type activities long-
term liabilities
One Year
177,659,704
-
Dec 31, 2016
Subtotal, bonds, premiums, and
discounts
171,222,367 13,000,000 (17,979,760) 166,242,607
17,696
Lease Rental Revenue
Refunding Bonds of 2011
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.
721,688
60
*Original amount refers to the original amount of the non-refunded portion only of any partially refunded bonds.
** City has additionally pledged county option income tax (COIT).
In the year ended December 31, 2017, the total of payments on the bonds listed above was 0.473% of taxable assessed value.
10,337,000
2016
2.000%-
5.000%2016
General Obligation Bonds,
Series 2016K
2.000%-
5.000%2016
2.000%-
5.000%
1,346,000
55,685,000 55,685,000
1,373,000 1,325,000
1,335,000
2036 1,513,000 1,461,000
2036
General Obligation Bonds,
Series 2016I
General Obligation Bonds,
Series 2016A
General Obligation Bonds,
Series 2016B
2016
2016 2036
Taxable Special Program
Bonds, Series 2016 29,720,000
Lease Rental Revenue
Refunding Bonds, Series
2014
1,426,000 1,377,000
1,211,000 1,169,000
1,325,000
2016
2.000%-
5.000%2016 2035 15,164,000 14,768,000
1,523,000
2.000%-
5.000%
Lease Rental Bonds, Series
2016B (Economic
Development Projects)
2016 2036
General Obligation Bonds,
Series 2016H
Lease Rental Bonds, Series
2016C (Energy Center
Project)
Lease Rental Bonds, Series
2016A (Public Infrastructure
Projects)
2.000%-
5.000%
Gerernal Obligation Bonds,
Series 2016J
2.000%-
5.000%2016
General Obligation Bonds,
Series 2016E
2.000%-
5.000%2016 2036 1,599,000 1,544,000
General Obligation Bonds,
Series 2016F
1,172,000
2014 2027
General Obligation Bonds,
Series 2016G
2.000%-
5.000%2016 2036
139,872,000
2.000%-
5.000%
1,577,000 2.000%-
5.000%2016 2036
1.576%-
3.762%2016 2041 29,720,000
General Obligation Bonds,
Series 2016L
2036
2.250%-
5.000%
1,577,000
1,394,000
1,373,000
2.000%-
5.000%
2036 1,383,000
General Obligation Bonds,
Series 2016M
10,337,000
2016 2036
2029
139,872,000**2.000%-
5.000%2016 2036
General Obligation Bonds,
Series 2016D
2.000%-
5.000%2016 2036
General Obligation Bonds,
Series 2016C
2.000%-
5.000%
2036 1,577,000 1,523,000
2.000%-
5.000%2016 2036 1,089,000 1,051,000
1,633,000
1,214,000
61
Midtown South Taxable Lease
Rental Bonds, Series 2017A
6.650%
COIT Refunding Bonds of
2011
COIT Lease Rental Revenue
Refunding Bonds, Series
2006 City Center
2011 2022 7,180,000
8,785,000
Taxable Tax Increment Revenue
Bonds, Series 2004A
920,000
2.320%
16,600,000 16,600,000
1.973% -
3.864%
46,795,000
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:
2014
COIT Lease Rental Revenue
Refunding Bond, Series
2014A
3.000%-
5.000%
2018 9,380,000 1,280,000 3.000%-
4.000%
Taxable Lease Rental Bonds,
Series 2017C-1
2.006% -
3.200%2017 2027 815,000
44,165,000
2.360% -
2.360%2017 2030 23,180,000 23,180,000
2042 7,405,000 7,405,000
9,500,000
2027
Taxable Lease Rental Bonds,
Series 2017C-2
2014
LIT Lease Rental Revenue
Refunding Bonds, Series 2017
3,600,000
Tax-Exempt Lease Rental
Bonds, Series 2017B-1
3.000% -
5.000%2017 2037 32,495,000 32,495,000
Tax-Exempt Lease Rental
Bonds, Series 2017B-2
3.200% -
3.200%
Interest Rate
Year of Year of Original Amount
Interest Rate Issue Maturity Amount Outstanding
Year of Year of Original Amount
Issue Maturity Amount Outstanding
In the year ended December 31, 2017, the total of payments on the bonds listed immediately above was 19.7% of annual
county option income tax revenue.
2006 2018
2004 2024
2017 2037 24,000,000 24,000,000
5.270%
4,760,000
815,000
2.100% -
3.750%2017 2025
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:
COIT Lease Rental Revenue
Refunding Bond, Series
2014B
2017
62
Loft A Private Placement 2011
Restated Secondary Village #1
Total bond principal and contract purchases
Capital Leases
Compensated Absences
Total bond principal, contract purchases, capital leases, and 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.
2026
Junior Waterworks Revenue
Refunding Bonds of 2017
Sewer Utility 2005 Revenue
Bonds Refinance
9,185,000
467,857
1.800%-
3.700%
Compensated Absences
2032
2005
2011
2036
11,040,000
11,000,000$
64,020,000
20,644,479
LIBOR
9,630,000 8,045,000
Amount
Outstanding
2022
7,315,666
699,661
729,276,084$
4.320%-
4.610%
173,538,535
3.400%-
7.650%N/A
2005-2017
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.
3,782,090
N/A
Sewer Utility 2009 SRF
Original
5,585,000$
2008
N/A
Capital Leases
2033
N/A
In the year ended December 31, 2017, the total of payments on the bonds listed immediately above was 48.1% of annual
water user fee revenue, 19.3% of annual sewer user fee revenue, and 71.9% of annual storm water user fee revenue.
Sewer Utility 2012 Revenue
Bonds
2026
2.000%-
3.250%
4.130%-
5.790%
4.130%-
5.790%
2.000%-
4.000%
N/A
N/AN/A
N/A
5,894,000
21,625,000
N/A
2028
2025
Interest Rate
Storm Water Utility Bond
(Authorized: $44,500,000)28,827,000 2036
2017 2037 13,000,000 13,000,000
Contract purchases of capital assets:
2012
4,500,000 2,333,293
53,115,000
34,828,517
17,920,000
721,688
2030
Water Utility 2008 Coupon
Water Utility 2008 Capital
Appreciation
56,934,550
902,814,619$
2008
2012
2013
N/A
Issue Maturity Amount
30,720,000 2.000%-
5.000%
2009
Year of
Water Utility Junior
Waterwork Revenue Bond
LIBOR
664,326,207
2013 2034
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:
172,348,990
0.420%
Year of
The City has pledged up to $1,115,000 of county option income tax revenue, payable in the event an overlapping unit of
government is unable to service certain debt. The City does not expect to be called upon to make these payments.
6,106,383
Year of Year of Original Amount
Issue Maturity Amount Outstanding
Total governmental activities bonds, contract
purchases, capital leases, and compensated absences.
In the year ended December 31, 2017, the total of payments on the bonds listed immediately above was 3.6% of annual
incremental tax revenue.
Interest Rate
672,341,534
2016
63
2. Debt Service Requirements to Maturity
Premium/Discount
3. Capital Leases
2019 6,265,486 7,640,968 13,906,454
54,805,259
821,751
Total
21,570,855$
6,106,383
124,126 1,870,656
181,704,034
158,519,000
642,742,743
21,583,464
664,326,207$ Bonds and contract
purchases
28,730,245 26,075,014
Interest
25,886,905$
2038 - 2042 14,555,000
1,746,530
172,348,990$ Bonded debt
49,673,342
5,741,431
161,876,280
25,765,897
27,312,881
2019
2020
2021
2018
Excess of the
present value of
future payments
over the unpaid
principal of capital
appreciation bonds
589,693
87,000,922
Year Ended
December 31 Principal
2019
2020 6,848,010 7,482,670 14,330,680
2021
2022
December 31 Principal Interest
267,196,734
7,447,187 7,320,089 14,767,276
55,686,682
15,376,751
315,675,305 958,418,048
Total
1,576,454
2021 1,045,366 47,606 1,092,972
2022
2033 - 2037 15,246,194
81,994
2023 - 2027
2022 8,078,224 7,155,432
Business-Type Activities:
Year Ended
22,708,551
13,510,881$ 7,769,450$
15,233,656
December 31
Year Ended
Governmental Activities:
2018
2023 - 2027
2028 - 2032
2033 - 2037
Principal
105,320,454
57,272,266
19,373,949
238,976,300
177,892,949
31,314,240
2,521,507 17,767,701 2028 - 2032 60,929,393 19,033,480 79,962,873
Total 166,242,607 90,237,836$ 256,480,443$
Capital Leases:
Total 7,315,666$ 483,494$ 7,799,160$
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, 2017, the City had assets with an original cost of $15,420,012 and accumulated depreciation of
$5,580,195 financed through capital leases.
Interest Total
2,020,087$ 171,973$ 2,192,060$ 2018
25,300 614,993
2023 - 2027 419,530 32,495 452,025
2020 1,494,460
53,049,339
53,989,614
27,283,442
26,676,733
26,964,791
Total
47,457,760$
64
4. Operating Leases
5. Other Commitments
6. Nominal Debt Used as Tax Incentives
2017 Installment Purchase Contract (Monon & Main)
2017 Economic Development Revenue Bonds (Edward Rose Development Carmel, LLC, Project
2015 Economic Development Revenue Bonds (KG Main, LLC, Project)
2011A Senior Economic Development Revenue Bonds (Arts District Lots & Shoppes)
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)
2006 B Taxable Economic Development Revenue Bonds (Buckingham-Gramercy Project)
7. Economic Gain on Advance Refunding
201,866$ 13,556$
2,172,250 1,697,148 475,102
2018
The change in cash flows resulting from the advance refunding is as follows:
Year
12,460,250 10,084,866 2,375,384
9,322,125 10,527,903
1,430 71,876
(1,205,778)
The Water and Sewer Utilities entered into various capital leases for certain equipment. As of December 31, 2017, the Utilities had
assets with an original cost of $1,170,176 and accumulated depreciation of $352,458 financed through capital leases.
2,120,000
2022 70,446
$ 3,073,433
215,422$ 2018
2019 163,438 10,432 173,870
Refunded
Bonds
Refunding
Bonds Savings
$ 30,550,438 $ 27,477,005
475,133
Total 721,688$ 36,222$
2021
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 2017 was $410,000 and book value for the year ended 2017 was
$18,450,000.
2022 - 2026
2027 - 2031
Proceeds of City bonds issued during the year ended December 31, 2017, known as the LIT Lease Rental Revenue Refunding Bonds,
Series 2017, were used to advance refund certain other obligations then outstanding, at an economic gain of $2,583,521.
1,643,592
Totals
757,910$
476,408
2020
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.
2,259,563 1,782,379 477,184
2,216,250 1,741,117
and do not exceed, the committed or restricted fund balances of the respective funds. Construction commitments for the Storm Water
Fund were $22,540,429, and construction commitments for the Water and Sewer Enterprise Funds were less than $100,000.
The City had various obligations outstanding at December 31, 2017, on contracts not completed. Those commitments are recorded as
encumbrances and shown as assigned fund balance in the General Fund. In other funds, these commitments, if any, are included in,
Capital Leases:
Year Ended
December 31 Principal Interest Total
2020 166,764 7,106 173,870
2021 119,174 3,698 122,872
2019
65
8. Schedule of Outstanding Principal on Advance Refunded Debt
Outstanding Amount
Outstanding Bonds
E. Risk Management; Claims
Changes in the balance of claim liabilities are as follows:
Unpaid claims, beginning of fiscal year
Incurred claims and changes in estimates
Claim payments
Unpaid claims, end of fiscal year
10,072,016
9,174,919
479,159$
10,288,686
1,376,256$
10,871,346
2016
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 $13,427,500. There were no significant reductions in insurance coverages from prior
years. Settled claims resulting from this risk did not exceed aggregate commercial insurance coverage in the three years ended
December 31, 2017.
Amounts are paid into the Fund by user departments. Funds are available for claims, claim reserves, and administrative costs of the
program. Interfund transfers into the Fund are based upon the actual claims incurred of each department's current year eligible
employees. The basis for estimating unpaid claims, including specific incremental claim adjustment expenditures, if any, is a study of
actual claims experience in recent past periods.
2017
1,376,256$ 793,596$
Outstanding
Totals
7/1/2020
1/15/2018
1/15/2018
1/15/2021
6/1/2018
COIT LR Bonds of
2010A COPS
2010B COPS
2010C COPs
2008B Jr. Water
24,225,000$
35,050,000
2,350,000
14,375,000
58,230,000
$ 134,230,000
Local Income Tax Lease Rental Revenue Refunding Bonds, Series 2017
Lease Rental Revenue Multipurpose Bonds, Series 2012A
Lease Rental Revenue Multipurpose Bonds, Series 2012B (Taxable)
Carmel Bond Bank Lease Rental Refunding Bonds, Series 2016C
Carmel Bond Bank Special Program Bonds, Series 2016
Refunded Bonds Bonds Refunded Through
$ 14,400,000 $ 17,459,903 $ (3,059,903)
2028 - 2032 - 4,362,620 (4,362,620)
2033 - 2037 - (4,356,730) 4,356,730
Proceeds of Water Utility bonds issued during the year ended December 31, 2017, known as the Junior Waterworks Revenue
Refunding Bonds of 2017, were used to refund certain other obligations then outstanding, at an economic gain of $875,235.
The change in cash flows resulting from the refunding is as follows:
Year
Refunded
Obligations
Refunding
Bonds Savings
2018 $ 1,800,000 $ 876,698 $ 923,302
2019 1,800,000 876,141 923,860
2020 1,800,000 874,891 925,109
2021 1,800,000 873,921 926,079
2022 1,800,000 874,179 925,821
2023 - 2027 5,400,000 4,364,725 1,035,276
66
F. Pension Plans
1. Single Employer Defined Pension Plan
Plan Description
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.
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. 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.
Fire
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.
15
15
-
Membership in the Plans as of the most recent actuarial valuation was comprised of the following:
Police
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
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.
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.
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:
Net Pension Liability and Pension Expense:
Assumptions and Other Inputs
1925 or 1937 Plan
The City's net pension liability of $9,781,191 for the '25 Police Officers' Plan and $10,676,665 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 January 1, 2017. For the year ended December 31, 2017, the City recognized pension expense of $366,328 for
the '25 Police Plan and $397,243 for the '37 Firefighters Plan.
1977 Plan Converted 0.55% (est.) for 2016, 2.5% thereafter
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.
3.62% Police Officers; 3.65% Firefighters
Cost of Living Increase:
2.71% for 2016, 2.5% thereafter
Mortality and Mortality Improvement
Valuation Date
December 31, 2017
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
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.
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, 2017, the State of Indiana contributed $557,208 to
the '25 Police Officers' Plan and $577,369 to the '37 Firefighters' Plan on behalf of the City during the fiscal year.
SOA published mortality table: RP-2014 adjusted to 2006 blue-collar mortality
table. Separate tables for male and female participants. Separate tables for active
employees, healthy annuitants, and disabled participants.
January 1, 2017–Police Officers' members' census data as of January 1, 2017, and
Firefighters member census data as of January 1, 2017, was used in the valuation.
Measurement Date
68
Changes in the Net Pension Liability:
Changes for the year:
Fiduciary net position as a percentage of total pension liability
Fiscal Year End
Thereafter
Changes for the year:
Effect of economic/demographic gains and losses
Fiduciary net position as a percentage of total pension liability
-
Net investment income
-
148,470$ 9,971,078$
Effect of economic/demographic gains and losses
10,119,548$
2$
-$
2022 -$
Effect of assumptions changes or inputs
Member contributions
-
-
-
366,328
1,875
882
(1,875)
Benefit payments
224 (224)
Administrative expenses -
Effect of plan changes
Interest on total pension liability
Service cost
(882)
Balances as of December 31, 2016
-
'25 Police Officers' Plan
-
-
The balances as of December 31, 2017 of the deferred outflows (inflows) of resources will be recognized in pension expense as
follows:
2018 2,157$
2019 2,157$
2020 1,091$
2021
- -
-
Balances as of December 31, 2017 9,781,191$
-
- 577,369 (577,369)
-
(557,208)
-
Net Pension
Liability
-
-
-
-
366,328
-
-
397,243
Effect of plan changes - - -
- - -
Effect of assumptions changes or inputs
Net Pension
Liability
Balances as of December 31, 2016
147,471$
-
Plan Fiduciary
Net Position
Member contributions
Employer contributions
Benefit payments
Administrative expenses
Net investment income
-
10,676,665$
1.5%
10,883,369$ 30,375$ 10,852,994$
Service cost - - -
Interest on total pension liability
(577,920)
-
0.2%
-
-
(4,021)
Total Pension
Liability
9,928,662$
'37 Firefighters' Plan
(557,214)
-
Increase (Decrease)
-
-
397,243
(557,214)
557,208
-
Plan Fiduciary
Net Position
(577,920)
Employer contributions
26,027$
Increase (Decrease)
Total Pension
Liability
4,021
Balances as of December 31, 2017 10,702,692$
69
Fiscal Year End
Thereafter
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
2022 -$
'25 Police Officers' Plan $ 8,786,356 $ 9,781,191
December 31, 2017
1% Increase
48,201
$ 26,027
254$
-$
-$
The balances as of December 31, 2017 of the deferred outflows (inflows) of resources will be recognized in pension expense as
follows:
2018
2019
2020
2021
506$
506$
$ 147,471
46,531
$ 10,969,943
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, 2017. The amounts were $557,208 and $577,369, respectively.
The State of Indiana is not obligated to make such grants in the future, and the City remains liable for future pension expenditures.
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:
'37 Firefighters' Plan
48,201
'37 Fire
Pension
Trust Fund
74,228
$ 26,027
$ 12,038,186 $ 9,580,483 $ 10,676,665
1% Decrease
46,531
STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDS
194,002
$ 147,471
'25 Police
Pension
Trust Fund
Current
Discount Rate
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:
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.
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).
558,090
For the Fiscal Year Ended December 31, 2017
$ 147,471
557,214
'37 Fire
Pension
Trust Fund
$ 577,369
224 -
577,593
577,920
4,021
581,941
(4,348)
30,375
$ 26,027
'25 Police
Pension
Trust Fund
$ 557,208
882 -
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.
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.
1,875
559,089
(999)
148,470
71
Pension Plan Report and Fiduciary Net Position:
Retirement Benefits:
Indianapolis, Indiana 46204
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.
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.
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:
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.
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
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.
Indiana Public Retirement System
One North Capitol Avenue, Suite 001
72
Funding Policy:
Significant Actuarial Assumptions:
6.75% (net of investment expenses)
The following represents the City's annual required contributions:
Year Ended
December 31
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
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.
Accounting
6.75% (net of administrative and investment expenses)
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.
Interest Rate/ Investment Return:
Funding
Asset valuation date – June 30, 2017
Liability valuation date – June 30, 2017 - The June 30, 2017 valuations incorporate member census data as of June
30, 2016, adjusted for certain activity during fiscal year 2017. The valuation results from June 30, 2016 were rolled-
forward to June 30, 2017 to reflect benefit accruals during the year less benefits paid.
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.
The total pension liability is determined by INPRS actuaries in accordance with GASB No. 67 and No. 68, 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:
Required
Contribution
Percentage
Contributed
2017 1,967,723$ 100%
73
Benefit Commencement Timing:
Data Assumptions:
•
•
•
Age
100% of non-vested inactive members are assumed to withdraw their ASA balance immediately on the valuation date.
60% of active members who decrement while vested are assumed to annuitize their ASA balance at their assumed retirement age.
100% of active members are assumed to withdraw their ASA balance immediately upon decrement.
Decrement timing – decrements are assumed to occur at the beginning of the year.
Prior to January 1, 2018:
100% of active members who decrement prior to vesting are assumed to withdraw their ASA balance immediately upon
decrement.
<31
Future Salary Increases – Based on 2010-2014 experience. Illustrative rates shown below:
2.00%
2.25%
2.25%
2.25%
2.25%
2.25%
60% of vested inactive members are assumed to annuitize their ASA balance at their assumed retirement age.
ASA Annuitization:
Beginning January 1, 2018:
1.50%
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.
There were no method changes for the June 30, 2017, valuation.
Changes in actuarial assumptions:
For disabled members, the mortality assumption is updated from the RP-2014 (with MP-2014 improvement
removed) Total Data Set Mortality tables to the RP-2014 (with MP2014
improvement removed) Disability Mortality tables.
Changes in actuarial methods:
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.
Cost-of-Living Increases – 1.0% per year in retirement beginning January 1, 2020. 13th checks were provided to members in pay
status in lieu of a permanent cost-of-living increase in fiscal year 2017, 2018, and 2019.
46-55
31-45
Total Individual
Salary Growth
>=61
56-60
2.50%
100% of inactive members are assumed to withdraw their ASA balance immediately.
Prior to January 1, 2018:
Interest on Member ASA Balances – 2.25% per year
2.75%
3.25%
3.75%
4.25%
0.25%
0.50%
1.00%
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.
Inflation
Productivity,
Merit, and
Promotion
For active and inactive vested members, a salary load of $400 was added to approximate the impact on average
monthly earnings of unused sick leave accumulated at termination of employment.
Mortality (Disabled) – RP-2014 (with MP-2014 improvement removed) Disability Mortality Tables projected on a fully generational
basis using the future mortality improvement scale inherent in the mortality projection included in the Social Security Administration's
2014 Trustee Report.
Disability – Based on 2010–2014 experience.
Mortality (Healthy) – RP-2014 (with MP-2014 improvement removed) Total Data Set Mortality Tables projected on a fully
generational basis using the future mortality improvement scale inherent in the mortality projection included in the Social Security
Administration's 2014 Trustee Report.
Retirement – Based on PERF experience 2010-2014
74
Pension Plan Fiduciary Net Position:
Public equity 22.0%
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:
4.0%
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.
0.7%
Commodities 8.0%
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.
Target Asset
Allocation
Long-Term Expected
Rate of Return
14.0%6.2%
Asset Class
2.0%
Absolute return 10.0%
Real estate 7.0% 2.7%
20.0% 2.7%
Fixed-income – inflation-linked 7.0%
15,581,494$ 9,643,268$
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.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
At December 31, 2017, the City reported a liability of $15,581,494 for its proportionate share of the net pension liability. The
City's proportionate share of the net pension liability was based on the City's wages as a proportion of total wages for the PERF
Hybrid Plan. The proportionate share used at the June 30, 2017 measurement date was 0.0034924.
5.7%
Private equity
2017 22,724,981$
12.0% 5.0%
Current Rate
Fixed-income – ex inflation-linked
1% Increase
6.75% 7.75%
Risk parity
1% Decrease
5.75%
75
Plan Description:
Funding Policy:
2019 1,020,348
345,778
2021 (83,823)
2022 -
-
3,258,019 1,007,490
Pension contributions subsequent to measurement date
4,783,501$ 1,007,490$
2020
12,093$
Net difference between projected and actual earnings on pension
plan investments 2,464,719 781,202
Changes in assumptions 250,174
For the year ended December 31, 2017, the City recognized pension expense of $3,247,420, which included net amortization of
deferred amounts from changes in proportion and differences between employer contributions and proportionate share of
contributions. At December 31, 2017, the City reported deferred outflows of resources and deferred inflows of resources related
to the PERF Hybrid Plan from the following sources:
Total 2,250,529$
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 2017, plan members were required to contribute 6 percent and participating employers were required to contribute
17.5 percent of the first-class officers' and firefighters' salary. Employers may elect to pay all or part of the contribution for the
member.
Year Ending December 31,Amount
2018
Deferred Inflows of
Resources
Differences between expected and actual experience 295,910$
Deferred Outflows
of Resources
1,525,482
968,226$
-
247,216 214,195
Total that will be recognized in pension expense (income) based
on the table below
Deferred outflows of resources resulting from employer contributions subsequent to the June 30, 2017, measurement date are
recognized as a reduction of net pension liability in the year ending December 31, 2018. 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
Changes in proportion and differences between City
contributions and proportionate share of contributions
76
Retirement Benefits:
Actuarial Assumptions:
net of investment expense
•
•
•
The actuarial assumptions used in the June 30, 2017, valuation of the 1977 Fund were adopted by the INPRS board in April 2017. The
total pension liability in the June 30, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
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.
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 disabled members, the mortality assumption is updated from the RP-2014 (with MP-2014 improvement
removed) Blue Collar Mortality tables to the RP-2014 (with
MP-2014 improvement removed) Disability Mortality tables.
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.
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.
Salary increases
Inflation
2.00%
2.50%
2.25%
Changes in actuarial methods:
There were no method changes for the June 30, 2017 valuation.
Mortality (Healthy) – RP-2014 (with MP-2014 improvement removed) Total Data Set Mortality Tables projected on a fully
generational basis using the future mortality improvement scale inherent in the mortality projection included in the Social Security
Administration's 2014 Trustee Report.
6.75%
Investment rate of return,
Cost-of-living increases, COLA or ad hoc
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:
Mortality (Disabled) – RP-2014 (with MP-2014 improvement removed) Disability Mortality Tables projected on a fully generational
basis using the future mortality improvement scale inherent in the mortality projection included in the Social Security Administration's
2014 Trustee Report.
1% of the members who become disabled are assumed to sustain a catastrophic disability and receive the
enhanced disability benefit (100% of salary) added by 2017 House Enrolled Act No. 1617.
77
Investment Valuation and Benefit Payment Policies:
Absolute return
2.7%
10.0%
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.
6.75%
Fixed-income – inflation-linked
(145,270)$ (6,681,816)$ 2017 Police
Target Asset
Allocation
2016 Geometric Basis Long-Term
Expected Real Rate of Return
Public equity 22.0%
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.
7,944,184$
2.7%
2017 Fire
5.0%
1% Decrease
7.0% 0.7%
Current Rate
7.75%
Commodities 8.0% 2.0%
14.0% 6.2%
Fixed-income – inflation-linked 20.0%
Risk parity 12.0%
1% Increase
5.75%
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.
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:
(195,225)$ (8,979,541)$
4.0%
Real estate 7.0%
10,676,010$
5.7%
Private equity
78
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.
Deferred Inflows of
Resources
Differences between expected and actual experience 585,001$ 456,481$
2,869,733 951,725
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
Changes in assumptions
4,181,067$ 3,633,320$
Net difference between projected and actual earnings on
pension plan investments
The City's contribution to the plan for the year ending December 31, 2017, was $1,476,835 for police participants and $1,983,080 for
fire participants, which was equal to the required contributions for each year.
At December 31, 2017, the City reported an asset of $145,270 for police and an asset of $195,225 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, 2017, measurement date was 0.0094176 for police and
0.0126561 for fire.
For the year ended December 31, 2017, the City recognized pension expense of $1,184,921 for police and $1,580,205 for fire, which
included net amortization of deferred amounts from changes in proportion and differences between employer contributions and
proportionate share of contributions. At December 31, 2017, the City reported deferred outflows of resources and deferred inflows of
resources related to the 1977 Plan from the following resources:
Derivative instruments are marked to market daily with changes in fair value recognized as part of investments and investment
income.
- 2,172,848
Changes in proportion and differences between City
contributions and proportionate share of contributions 91,751
Indiana Public Retirement System
One North Capitol Avenue, Suite 001
Ph. (888) 526-1687
Indianapolis, Indiana 46204
52,266
Total that will be recognized in pension expense (income) based
on the table below 3,546,485 3,633,320
Pension contributions subsequent to measurement date 634,582 -
Total
79
Firefighters
G. Post-Employment Benefits
1. Single-Employer Defined Benefit Healthcare Plan
Plan Description
4,907,780$
(444,924) (610,105)
Thereafter (366,706) (498,252)
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
Eligible retirees are those who retire from the City of Carmel with at least 20 years of creditable employment with a public employer.
If any of the years of creditable employment includes employment with other public employers besides the City of Carmel, then the
retiree must also be at least age 55 in order to be eligible.
The City contributes 50% of the employee-spouse premium for a retiree who has 20 years of service with the City, plus 1% for each
additional six months of service, to a maximum of 75% of the cost of medical and dental coverage. A retiree with employee-only (or
spouse-only, if the retiree is over 65) is eligible to receive 50% to 75% of the employee-only (or spouse-only) premium using the same
formula. The City’s contribution will not exceed $900 per month (up to $10,800 per year). Retiree contributions for a married couple
that works for the City are based on service of the individual employed for the longer period of time (not to exceed 75% of the total
premium). The City contributes 100% of the premium for medical and dental coverage for those who are killed in the line of duty with
no maximum contribution. The City pays 50% for work-related disabilities. All other retirees pay 100% of the premium.
2020 59,117 67,264
2021
-
81,993
Deferred outflows of resources resulting from employer contributions subsequent to the June 30, 2017 measurement date are
recognized as a reduction of net pension liability in the year ending December 31, 2018. Deferred inflows of resources resulting from
the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. A change in
an employer's proportionate share represents the change as of the current year measurement date versus the prior year measurement
date and is amortized over the average expected remaining service lives of the plan. The difference between an employer's
contributions and the employer's proportionate share of the collective contributions is amortized over the average expected remaining
service lives of the plan. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in
pension expense as follows:
Changes in proportion and differences between City
contributions and proportionate share of contributions
Differences between expected and actual experience 786,169$ 613,454$
95,284
-
Total
Changes in assumptions
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 annual appropriation.
2018 255,383$ 331,022$
2019 737,923 979,496
(86,835)$ (183,048)$
4,724,732 4,907,780
Pension contributions subsequent to measurement date 846,481
(452,473) (327,628) 2022
5,571,213$
The City's retiree healthcare plan (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.
Total that will be recognized in pension expense (income) based
on the table below
2,920,041
3,856,570 1,279,001
80
At December 31, 2017, the following members were covered by the terms of the plan:
Inactive plan members currently receiving benefit payments
Inactive plan members entitled to but not yet receiving benefit payments
Active plan members: fully eligible
Active plan members: not fully eligible
Total
Changes in the Net Pension Liability:
1. Balances at December 31, 2016
2. Changes for the Year
a. Service Cost
b. Interest Cost
c. Projected Earnings on Plan Investments
d. Changes in Plan Provisions
e. Administrative Expenses
f. Other Changes in Plan Fiduciary Net Position
1. Differences between Expected and Actual Experience
2. Changes in Assumptions
4. Total OPEB Expense/ Net Changes
3. Balances at December 31, 2017
Net OPEB Liability
For the year ended December 31, 2017, the City contributed $413,786 to the Plan for current premiums.
Coverage ends for the retiree at the retiree's Medicare eligibility date. Spousal coverage continues after the death of the retiree or after
the retiree becomes eligible for Medicare, and ends at the spouse's Medicare eligibility date.
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.
Deductibles, out-of-pocket limits, and employee contributions are assumed to increase annually at the medical care cost trend rate.
The Lifetime Maximum was not increased.
- - -
- - -
(34,161) - (34,161)
(85,431) - (85,431)
- - -
2,240,399 -
The Entry Age Actuarial Cost Method used in the current OPEB actuarial valuation is unchanged from the
prior OPEB actuarial valuation.
- - -
- - -
1,029,979 - 1,029,979
The Plan is closed to new entrants. Employees hired or disabled on or after October 3, 2016, are not eligible (except for those killed or
disabled in the line of duty).
2,240,399
25,700,351 - 25,700,351
g. Current Period Recognition of Deferred Outflows / (Inflows) of
Resources:
3. Net Difference between Projected and Actual Plan Investment
Earnings
Under this method, as used in the December 31, 2017, OPEB valuation, the Actuarial Present Value (APV) of Benefits (APVB) of
each individual included in the valuation is allocated on a level basis over the earnings of the individual between entry age and
assumed exit age(s). The employer portion of this APVB allocated to a valuation year is the Employer Normal Cost. The portion of
this APVB not provided for at a valuation date by the APV of Future Employer Normal Costs is the Total OPEB Liability.
The excess, if any, of the Total OPEB Liability over the Plan Fiduciary Net Position is the Net OPEB Liability. Under this method,
actuarial gains (losses), as they occur, reduce (increase) the Net OPEB Liability and are explicitly identified and amortized in the
Increases (decreases) in liabilities due to benefit changes, actuarial assumption changes and/or actuarial method changes are also
explicitly identified and amortized in the annual expense.
23,459,952 - 23,459,952
Net OPEB
Liability
Plan Fiduciary
Net Position
Total OPEB
Liability
1,330,012 - 1,330,012
38
-
138
469
645
81
4. Sensitivity of the Net OPEB Obligation to Changes in the Discount Rate
Total OPEB Liability
Plan Fiduciary Net Position
Net OPEB Liability
5. Sensitivity of the Net OPEB Obligation to Changes in the Healthcare Cost Trend Rate
Total OPEB Liability
Plan Fiduciary Net Position
Net OPEB Liability
COST METHOD Entry Age Normal (Level % of Pay)
ECONOMIC ASSUMPTIONS:
Discount rate
Discount rate basis
Mortality:
Civilian employees
Police and fire employees
Mortality improvement
Disability
Turnover
Coverage rate
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 Methods and Assumptions
*The S&P Municipal Bond 20 Year High Grade Rate Index consists of bonds in the S&P Municipal Bond Index with a maturity of
20 years. Eligible bonds must be rated at least AA by Standard and Poor's Ratings Services, Aa2 by Moody's or AA by Fitch. If
there are multiple ratings, the lowest rating is used.
3.2% per annum
S&P Municipal Bond 2+-Year High Grade Rate Index*
SOA published mortality table: RP-2014 Total Dataset mortality
table adjusted to the 2006 base mortality year. Separate tables for
males and female participants. Separate tables for active
employees, healthy annuitants, and disabled participants.
90% of eligible employees are assumed to be covered in the plan
at retirement.
23,576,938$ 25,700,351$ 28,169,547$
- - -
23,576,938$ 25,700,351$ 28,169,547$
None Assumed
SOA published mortality table: RP-2014 Blue Collar mortality
table adjusted to the 2006 base mortality year. Separate tables for
males and female participants. Separate tables for active
employees, healthy annuitants, and disabled participants.
SOA published mortality improvement scale: MP-2017
generational, which projects mortality improvement indefinitely
beyond the 2006 base mortality year 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
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.
1% Decrease Current Rate 1% Increase
27,805,581$ 25,700,351$ 23,713,866$
- - -
27,805,581$ 25,700,351$ 23,713,866$
1% Decrease Current Rate 1% Increase
82
Spouse
Active participants
Retirement Rates:
Civilian employees:
Police and fire employees:
Plan Mix:
Plan A
Plan B
Per capita claims cost:
Age Age
55-59 All Ages
60-64
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+
30.0%
100.0%
75%
Male
17%
100%
4%
5%19%
Female
19%
20%
35%
24%
21%
Male
647$
Male
12,261$
15,726$
10.0%
9.0%
8.0%
5%
8%
14%
32%
Female
26%
3%
2%
7%
12%
14%
14,575$
2015 Dental
2017 Dental
Rate
2.5%
7.5%
22.5%
Age
63
64
65
66
67
68
69
70-74
75+
4%
2%
2%
3%
5%
4%
4%
5%
6.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
5.0%
7.0%
12,129$
14,210$
45%
55%
2017 2015
2015 Medical & Vision
Male Female
Female
65+
20%
Active participants: 35% are assumed to cover a spouse, with
male spouses 2 years older than female spouses.
40%
25%
22%
Varies by age and status; representative rates follow:
16%
30%
100%
Male Female
12,576$ 12,441$ 384$ 384$
50-53
16,131$
54
62
Retired participants: Age and marital status based on actual
census data.
Female
647$
2017 Medical & Vision
Age
61
58
59
60
17%
19%
30%
56
57
55
25%
Age
45-51
Male
52-54
55-60
61-64
83
H. Schedule of Aggregate Amounts – Single-employer and Cost Sharing Multiple-employer Defined Benefit Pension Plans
Pension liability
Pension assets
Net pension liability (asset)
Deferred outflows of resources
Deferred inflows of resources
Pension expense (income)
I. Interfund Receivables and Payables
The composition of the interfund balances as of December 31, 2017 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:
-
-$
The Motor Vehicle Highway Fund is due $52,921 from the Storm Water Enterprise Fund to comply with an ordinance requiring
certain transfers.
Various claims and lawsuits are pending against the City. At December 31, 2017, the administration believes the amount payable for
claims and judgments, if any, is not material in relation to the basic financial statements taken as a whole.
Certain City officials are empowered to issue purchase orders and enter into contracts that constitute contractual obligations of the
City. These encumbrances, treated as assigned fund balance as of December 31, 2017, are as follows.
-$
52,921
52,921$
742,327$
1,006,932$
1,803,672$
Amount
264,605
Water utility invoices include charges for sewer and other utilities, and these charges are remitted as collected, one month in arrears.
206,241,395$
170,542,540
35,698,855$
14,535,781$
9,548,590$
6,776,117$
Total
9,928,662$
147,471
9,781,191$
-$
-$
366,328$
10,702,692$
26,027
10,676,665$
-$
-$
397,243$
66,726,545$
51,145,051
15,581,494$
4,783,501$
1,007,490$
3,247,420$
118,883,496$
Public Employees'
Retirement
1937 Firefighters'
Pension
1925 Police
Officer's Pension
1977 Police Officers'
and Firefighters'
Pension and Disability
119,223,991
(340,495)$
9,752,280$
8,541,100$
2,765,126$
84
K. Prior Period Adjustments
Governmental activities beginning net position was adjusted downward $7,269,656 to account for the following:
Increase in OPEB liability due to change in accounting standards
Total
Business-type activities beginning net position was adjusted downward $1,177,345 to account for the following:
Increase in OPEB liability due to change in accounting standards
Total 112,395,329$ (1,177,345)$ 111,217,984$
Beginning Net
Position Restatement
Beginning Net
Position, Adjusted
(7,269,656)$
(7,269,656)$
(1,177,345)$
Beginning Net
Position Restatement
Beginning Net
Position, Adjusted
288,795,551$ 281,525,895$
85
2017
Total OPEB Liability
Service Cost 1,330,012$
Interest Cost 1,029,979
Projected Earnings on Plan Investments -
Changes in Plan Provisions -
Administrative Expenses -
Other Changes in Plan Fiduciary Net Position -
-
Differences between Expected and Actual Experience (34,161)
Changes in Assumptions (85,431)
-
Net Changes in Total OPEB Liability 2,240,399$
Total OPEB Liability - Beginning 23,459,952$
Total OPEB Liability - Ending 25,700,351$
Plan Fiduciary Net Position - Beginning -$
Plan Fiduciary Net Position - Ending -$
Net OPEB Liability 25,700,351$
Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%
Covered Employee Payroll 38,047,090$
Net OPEB Liability as a Percentage of Covered Employee Payroll 67.55%
The most recent actuarial valuation date is December 31, 2017.
Additional information on the City's OPEB can be found in Note III.G on pages 80–83 of this report.
Current Period Recognition of Deferred Outflows / (Inflows)
of Resources:
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
For the Fiscal Year Ended December 31, 2017
Net Difference between Projected and Actual Plan
Investment Earnings
Note: 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.
86
Actuarially determined contributionCity of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF ACTUARIALLY DETERMINED CONTRIBUTIONSDecember 31, 20172016546,748$ 546,748 See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.1937 Firefighters' Pension Plan:2017-$ 577,369$ 577,369 Contribution deficiency (excess)Not applicableNot applicable2015Contributions in relation to the actuarially determined contributionCovered-employee payrollContributions as a percentage of covered-employee payroll-$ -$ - 1925 Police Officers' Pension Plan:2017Not applicable-$ - 557,208 557,208$ Actuarially determined contributionContributions in relation to the actuarially determined contributionContribution deficiency (excess)Covered-employee payrollContributions as a percentage of covered-employee payroll-$ Not applicable2016553,519$ 553,519 -$ 534,143$ 534,143 - -$ Not applicable2015562,264$ 562,264 -$ -$ Not applicable87
Pension liability:Fiduciary net positionNet pension liabilityNet position as a percentage of the pension liabilityCovered payrollNet position as a percentage of covered payrollPension liability:Fiduciary net positionNet pension liabilityNet position as a percentage of the pension liabilityCovered payrollNet position as a percentage of covered payrollNot applicable2015201510,179,012$ 147,785 10,031,227$ 9,928,662$ 201610,119,548$ December 31, 2017148,470 147,471 9,781,191$ 1.5%Not applicable- 1.5%City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOSNot applicable1925 Police Officers' Pension Plan:20171937 Firefighters' Pension Plan:- Not applicable20162017Not applicable10,883,369$ -$ 30,375 10,852,994$ 0.3%10,702,692$ 26,027 10,676,665$ 0.2%See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.10,997,707$ 39,365 10,958,342$ 0.4%-$ Not applicable1.5%- -$ 9,971,078$ 88
Net pension liability - beginning Changes for the year:Net pension liability - endingNet pension liability - beginning Changes for the year:Net pension liability - ending(557,208) - (882) 1937 Firefighters' Pension Plan:(546,748) - - - Employer contributionsMember contributionsNet investment incomeAdministrative expenses- Member contributions - Net investment incomeBenefit payments- - - 366,328 - Interest on total pension liabilityService cost- Effect of economic/demographic gains and losses- - - - $ 10,852,994 - $ 9,971,078 1,875 $ 9,781,191 201610,958,342$ $ 10,676,665 - 201710,852,994$ (224) 393,503 (577,369) (553,519) See notes to schedules, 1925 Police and 1937 Firefighters' Pension PlansEffect of assumptions changes or inputs20162015- City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN NET PENSION LIABILITYDecember 31, 2017Effect of plan changes9,971,078$ 1925 Police Officers' Pension Plan:201710,031,227$ - 363,703 - 122,896 - 201510,072,125$ - 367,444 - 125,844 - (534,143) - (143) 100 $ 10,031,227 10,997,880$ - 396,965 - 125,812 - Service cost - Interest on total pension liability 397,243 Effect of plan changes - - Effect of assumptions changes or inputs - - 54,668 - Effect of economic/demographic gains and lossesAdministrative expenses 4,021 (562,264) Benefit payments - Employer contributions- (51) - $ 10,958,342 89
REQUIRED SUPPLEMENTARY INFORMATIONNOTES TO SCHEDULEMortality2.25%Cost-of-living adjustmentsNote: The City is presenting its third CAFR since 2007. 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 method1925 POLICE OFFICERS' AND 1937 FIREFIGHTERS' PENSION PLANSDecember 31, 2017Entry Age NormalN/ADiscount rateRP-2014 with MP-2014 removed and generational mortality improvement using Scale MP-2015City of Carmel, IndianaLevel DollarValuation date:Actuarially determined contribution rates are calculated as of December 31, 2016Methods and assumptions used to determine contribution rates:Actuarial cost methodSalary increases3.60%90
City's Proportionate Share of the Net PensionPERF Plan Net Position as a Percentage of Total Pension LiabilityCity's Proportionate Share of the Net PensionPolice 20160.0101528901,944$ 7,847,007$ 11%103%City's Proportionate Share of the Net Pension Liability (Asset)1977 Plan Net Position as a Percentage of Total Pension AssetPolice 2015 Liability as a Percentage of Its Covered Employee Payroll(145,270)$ 77%20160.003535316,044,763$ 16,943,306$ 95%7,634,954$ -2%City's Proportionate Share of the Net Pension LiabilitySCHEDULE OF THE CITY'S PROPORTIONATE SHAREOF THE NET PENSION LIABILITYDecember 31, 201716,335,991$ 85%1977 Police Officers' and Firefighters' Pension and Disability Fund:Continued on next page.79%90%17,326,450$ Public Employees' Retirement Fund:13,891,040$ 0.0094176City's Covered Employee Payroll2015103%77%City's Covered Employee Payroll0.00341060.0101282(1,496,139)$ 7,552,611$ -20%201715,581,494$ 0.0034924City's Proportion of the Net Pension Liability Liability as a Percentage of Its Covered Employee PayrollCity of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONDEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANSPolice 2017City's Proportion of the Net Pension Liability104%91
City's Proportionate Share of the Net Pension103%Fire 2016SCHEDULE OF THE CITY'S PROPORTIONATE SHAREOF THE NET PENSION LIABILITYDecember 31, 2017(Continued) Liability as a Percentage of Its Covered Employee Payroll -2%City's Proportion of the Net Pension Liability 0.0126561Fire 2017The amounts presented for each year were determined as of the Plan's June 30 year-end that occurred within the City's fiscal year.0.0135237Note: The City is presenting its third CAFR since 2007. 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. Pension Asset104%-20%103%Fire 20151,201,404$ 10,452,317$ 11%(2,025,686)$ 0.0137130City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONDEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS1977 Plan Net Position as a Percentage of TotalCity's Proportionate Share of the Net Pension Liability (Asset)(195,225)$ City's Covered Employee Payroll10,260,440$ 10,225,780$ 92
Public Employees' Retirement Fund:
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS
SCHEDULE OF CITY CONTRIBUTIONS
December 31, 2017
Contractually
Required
Contributions
City
Contributions
related to the
Contractually
Required
Contributions
Contribution
Deficiency
(Excess)
City's Covered
Employee
Payroll
Contributions as
a Percentage of
Covered
Employee
Payroll
18%
2016 2,916,463$ 2,916,463$ -$ 16,943,306$ 17%
2017 3,045,739$ 3,045,739$ -$ 17,326,450$
-$ 16,335,991$
1977 Police Officers' and Firefighters' Pension and Disability Fund:
Contractually
Required
Contributions
City
Contributions
related to the
Contractually
Required
Contributions
Contribution
Deficiency
(Excess)
City's Covered
Employee
Payroll
Contributions as
a Percentage of
Covered
Employee
Payroll
17%2015 2,755,295$ 2,755,295$
21%
2017 Police 1,713,532$ 1,713,532$ -$ 7,634,954$ 22%
2016 Police 1,657,359$ 1,657,359$ -$ 7,847,007$
23%
2015 Police 1,607,669$ 1,607,669$ -$ 7,552,611$ 21%
2017 Fire 2,350,371$ 2,350,371$ -$ 10,260,440$
21%
2016 Fire 2,186,794$ 2,186,794$ -$ 10,452,317$ 21%
2015 Fire 2,185,238$ 2,185,238$ -$ 10,225,780$
93
NOTES TO SCHEDULES
REQUIRED SUPPLEMENTARY INFORMATION
City of Carmel, Indiana
Note: Covered payroll for the purposes of this schedule was determined as of the City's fiscal year ended December 31.
Note: The City is presenting its third CAFR since 2007. 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.
December 31, 2017
PUBLIC EMPLOYEES' RETIREMENT AND 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION
AND DISABILITY FUNDS
94
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax 39,239,778$ 38,992,443$ 39,034,000$ 41,557$
Income tax 36,754,390 36,754,390 36,754,390 -
Licenses and permits 2,227,025 1,922,878 1,956,543 33,665
Intergovernmental 562,019 574,918 526,788 (48,130)
Charges for services 2,795,339 2,791,258 1,061,883 (1,729,375)
Fines and forfeits 670,618 514,368 466,731 (47,637)
Miscellaneous 1,041,143 1,366,762 1,069,373 (297,389)
Township and joinder agreements 858,051 851,599 1,177,336 325,737
Other 6,469,142 6,159,567 5,954,347 (205,220)
Total revenues: budgetary basis 90,617,505 89,928,183 88,001,391 (1,926,792)$
Increase in available intergovernmental receivable - - - -
Increase in available income tax receivable - - 433,184 -
Transfer from a nonmajor fund
treated as revenue on a budgetary basis - - (25,800) -
Total revenues reported on the
Statement of Revenues and Expenditures -$ -$ 88,408,775$ -$
EXPENDITURES:
Current:
General government:
Clerk-Treasurer:
Personal services 973,082 973,082 882,626 (90,456)
Supplies 11,303 11,303 9,230 (2,073)
Other services and charges 284,967 379,515 138,411 (241,104)
Capital outlay 33,969 33,969 22,051 (11,918)
Mayor's Office:-
Personal services 435,490 435,490 393,960 (41,530)
Supplies 4,972 4,972 2,767 (2,205)
Other services and charges 3,939,474 4,044,186 4,400,899 356,713
Capital outlay - - - -
City Council:
Personal services 286,702 286,702 236,587 (50,115)
Supplies 1,550 1,550 1,391 (159)
Other services and charges 247,000 247,000 153,798 (93,202)
Capital outlay 136,800 136,800 43,055 (93,745)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
General Fund
For the Fiscal Year Ended December 31, 2017
Budgeted Amounts
Continued on next page.
95
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 19,301 19,301 13,769 (5,532)
Debt service 11,697,392 11,697,392 11,697,371 (21)
Administration:
Personal services 403,640 403,640 230,594 (173,046)
Supplies 63,994 63,994 35,535 (28,459)
Other services and charges 2,244,752 2,244,752 1,873,848 (370,904)
Capital outlay 40,581 40,581 53,815 13,234
Brookshire Golf Course:
Personal services 775,080 775,080 621,217 (153,863)
Supplies 140,050 140,050 128,085 (11,965)
Other services and charges 575,887 575,887 573,143 (2,744)
Capital outlay 12,000 12,000 5,084 (6,916)
Building Operations:
Supplies 8,160 8,160 375 (7,785)
Other services and charges 2,413,863 2,413,863 2,800,909 387,046
Capital outlay - - - -
City Court:
Personal services 880,067 880,067 677,955 (202,112)
Supplies - - - -
Other services and charges - - - -
Capital outlay 1,000 1,000 1,000 -
Law Department:
Personal services 752,630 752,630 689,144 (63,486)
Supplies 2,729 2,729 1,761 (968)
Other services and charges 313,580 313,580 339,188 25,608
Capital outlay 28,715 28,715 12,437 (16,278)
Community Services:
Personal services 2,284,347 2,284,347 2,204,970 (79,377)
Supplies 40,375 40,375 29,849 (10,526)
Other services and charges 1,270,181 1,270,181 806,570 (463,611)
Capital outlay 134,022 134,022 104,924 (29,098)
Personnel/ Human Resources:
Personal services 420,170 420,170 400,812 (19,358)
Supplies 500 500 161 (339)
Other services and charges 70,105 70,105 41,832 (28,273)
Capital outlay 2,200 2,200 1,146 (1,054)
Information Systems:
Personal services 1,186,560 1,186,560 1,123,078 (63,482)
Supplies 9,860 9,860 4,492 (5,368)
Other services and charges 527,398 527,398 442,143 (85,255)
Capital outlay 132,919 132,919 73,474 (59,445)
For the Fiscal Year Ended December 31, 2017
(Continued)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
Continued on next page.
Budgeted Amounts
96
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
City Property Maintenance:
Personal services - - - -
Supplies 164,000 164,000 151,291 (12,709)
Other services and charges 822,700 822,700 745,293 (77,407)
Capital outlay ----
Public Affairs/ Community Relations:
Personal services 717,494 717,494 559,754 (157,740)
Supplies 4,538 4,538 2,852 (1,686)
Other services and charges 1,805,628 1,805,628 1,488,882 (316,746)
Capital outlay 48,468 48,468 6,475 (41,993)
Street Department - Special Projects
Other services and charges --1,520,992 1,520,992
Total general government 36,370,195 36,569,455 35,748,995 (820,460)
Public Safety:
Fire Department:
Personal services 21,888,443 21,888,443 21,784,089 (104,354)
Supplies 302,979 302,979 250,379 (52,600)
Other services and charges 1,991,991 1,991,991 1,717,649 (274,342)
Police Department:
Personal services 17,250,952 17,250,952 16,705,730 (545,222)
Supplies 761,842 728,650 463,858 (264,792)
Other services and charges 2,203,720 2,021,150 1,920,812 (100,338)
Capital outlay 118,580 75,000 94,985 19,985
Communication Center:
Personal services 599,700 599,700 548,018 (51,682)
Supplies 27,376 27,376 25,398 (1,978)
Other services and charges 2,097,284 2,097,284 2,038,710 (58,574)
Capital outlay 73,500 73,500 69,763 (3,737)
Total public safety 47,316,367 47,057,025 45,619,391 (1,437,634)
Culture and recreation:
Parks Department:
Personal services 2,162,935 2,162,935 1,812,842 (350,093)
Supplies 114,085 114,085 104,312 (9,773)
Other services and charges 925,600 925,600 852,007 (73,593)
Capital outlay 15,000 15,000 13,351 (1,649)
Total culture and recreation 3,217,620 3,217,620 2,782,512 (435,108)
(Continued)
Continued on next page.
Budgeted Amounts
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
For the Fiscal Year Ended December 31, 2017
City of Carmel, Indiana
97
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
Economic Development:
Redevelopment Department:
Personal services 410,289 410,289 288,371 (121,918)
Supplies 1,600 1,600 982 (618)
Other services and charges 222,899 222,899 144,226 (78,673)
Capital outlay 13,420 13,420 7,351 (6,069)
Total economic development 648,208 648,208 440,930 (207,278)
Other Expenditure --336,081 336,081
Total expenditures, budgetary basis 87,552,390$ 87,492,308$ 84,927,909 (2,564,399)$
Increase (decrease) in accrued liabilities:
Accounts payable (144,915)
Accrued payroll and withholdings payable 569,433
Transfers to other funds (20,991,674)
Rainy Day Fund 15,560,221
Less, accrual due to Rainy Day Fund (11,530,831)
Total expenditures reported on the
Statement of Revenues and Expenditures 68,390,143$
Budgeted Amounts
For the Fiscal Year Ended December 31, 2017
(Continued)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
98
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 9,423,203$ 9,678,040$ 5,577,083$ (4,100,957)$
MVHF distribution 2,937,005 3,039,312 3,529,438 490,126
Miscellaneous 1,965,439 1,848,052 1,270,372 (577,680)
Total revenues: budgetary basis 14,325,647$ 14,565,404$ 10,376,893 (4,188,511)$
Transfers treated as revenue for budget purposes (651,781)
Other receipts not treated as revenue for budget purposes (2,329)
Total revenues reported on the
Statement of Revenues and Expenditures 9,722,783
EXPENDITURES:
Current:
Engineering:
Personal services 1,718,750 1,718,750 1,445,530 (273,220)
Supplies 12,400 12,400 11,393 (1,007)
Other services and charges 523,325 523,325 360,246 (163,079)
Capital outlay 198,792 198,792 142,554 (56,238)
Street Department:
Personal services 5,351,882 5,351,882 5,127,348 (224,534)
Supplies 1,966,971 1,966,971 971,570 (995,401)
Other services and charges 4,520,988 4,520,988 3,309,156 (1,211,832)
Capital outlay 183,508 183,508 174,676 (8,832)
Total expenditures: budgetary basis 14,476,616$ 14,476,616$ 11,542,473 (2,934,143)$
Increase in accrued liabilities:
Accounts payable 481,224
Accrued payroll and withholdings payable 101,712
Transfers to other funds (1,241,199)
Total expenditures reported on the
Statement of Revenues and Expenditures 10,884,210$
REQUIRED SUPPLEMENTARY INFORMATION
City of Carmel, Indiana
Budgeted Amounts
Motor Vehicle Highway Fund
For the Fiscal Year Ended December 31, 2017
MOTOR VEHICLE HIGHWAY FUND
BUDGETARY COMPARISON SCHEDULES
99
City of Carmel, Indiana
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
December 31, 2017
Budgetary Basis of Accounting
Annual budgets are required for the General Fund, Motor Vehicle Highway Fund, Fire Pension Fund,
Police Pension Fund, Local Road & Street Fund, Cumulative Capital Improvement Fund, Cumulative
Capital Development Fund, Redevelopment Bond, and Deferral Fund. 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.
100
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
contracts.
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.
Continued on next page.
101
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
The Support for the Arts Fund accounts for donations and grants received to be spent on arts programs and
engagement.
The Keystone Non-Reverting Fund accounts for amounts accumulated for certain infrastructure projects.
The Urban Forestry Fund accounts for amounts accumulated Urban Forestry Fund for street tree maintenance,
storm event or natural disaster cleanup, the replacement of street trees, and special training.
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 Parks 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 Levy Excess Fund accounts for monies collected from property taxes that exceed the City's legally-adopted
levy. Proceeds are used to offset future property tax levies.
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.
102
City of Carmel, Indiana
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 equipment.
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 street
projects financed by property tax, issued for the purpose of street improvement and construction.
The 2017 A Bond Construction Fund is a capital projects fund that accounts for the proceeds of a bond expected
to be paid from tax increment revenue.
103
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
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.
The 2016 Property Tax Bond Fund is a debt service fund that accounts for a tax levy to fund debt service for
property tax supported debt that finances 13 separate capital projects.
104
Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street Deferral User Fee Barrett Law Barrett Law Surplus MIHP Health Self Insurance ASSETS:Cash and investments 5,594,129$ $ 29,289 $ 3,403,002 3,040,404$ 112,703$ 13,167,531$348,678$ 184,754$ 6$ $ 166,369 17,009$ 4,209,910$ Property tax receivable- - ----- --- -Due from other funds- - ----- --- --Intergovernmental receivables- - ----- --- -Accounts receivable- - ----- --- - Total assets5,594,129 29,289 3,403,002 3,040,404 112,703 13,167,531 348,678 184,754 6 166,369 17,009 4,209,910 LIABILITIES:Accounts payable- - 59,328 130,605 --- --- --Claims payable- - ----- --- - 479,159 Due to other funds- - ----- --- --Accrued payroll- - 113,519 122,664 -- 2,892 --- 3,225 - Total liabilities- - 172,847 253,269 - - 2,892 - - - 3,225 479,159 DEFERRED INFLOW OF RESOURCES: Unavailable revenue- - ----- --- --FUND BALANCE:Restricted:General government- - - - - - - - - - - Public safety- 29,289 - - - - 345,786 184,754 - - 13,784 Highways and streets- - - - - 13,167,531 - - - - - Drainage and other capital assets- - - - - - - - 6 166,369 - Economic development- - - - - - - - - - - Culture and recreation5,594,129 - 3,230,155 2,787,135 112,703 - - - - - - Committed:General government- - ----- ---- 3,730,751 Public safety- - ----- ----Highways and streets- - ----- ----Drainage and other capital assets- - ----- ----Economic development- - ----- ----Unassigned- - ----- ---- TOTAL FUND BALANCES5,594,129 29,289 3,230,155 2,787,135 112,703 13,167,531 345,786 184,754 6 166,369 13,784 3,730,751 TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES5,594,129$ 29,289$ 3,403,002$ 3,040,404$ 112,703$ 13,167,531 348,678$ 184,754$ 6$ 166,369$ 17,009$ 4,209,910$ Continued on next page.BALANCE SHEETCity of Carmel, IndianaNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017Special Revenue Funds105
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 Workers Comp Support for the Arts Keystone Non-Reverting Urban Forestry Clerk's Record Perpetuation Court Interpreter Public Defenders Judicial Salary Fees Fire Gift Police Gift Parks Gift Community Relations Gift Economic Development 523,666$ 19,134$ 130,024$ 65,791$ 208,415$ 60$ 9,143$ 169,944$ 28,428$ 34,155$ 36,357$ 137,565$ 48,565$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 523,666 19,134 130,024 65,791 208,415 60 9,143 169,944 28,428 34,155 36,357 137,565 48,565 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 208,415 - - - - - - 137,565 - - - - - - 60 9,143 169,944 28,428 34,155 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 48,565 - - - 65,791 - - - - - - 36,357 - - 523,666 - ------------ - ------------ - 130,024 ----------- - ------------ 19,134 ------------ - -----------523,666 19,134 130,024 65,791 208,415 60 9,143 169,944 28,428 34,155 36,357 137,565 48,565 523,666$ 19,134$ 130,024$ 65,791$ 208,415$ 60$ 9,143$ 169,944$ 28,428$ 34,155$ 36,357$ 137,565$ 48,565$ Continued on next page.For the Fiscal Year Ended December 31, 2017NONMAJOR GOVERNMENTAL FUNDSSpecial Revenue Funds(Continued)City of Carmel, IndianaBALANCE SHEET106
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 Housing Authority Drug Task Force Thoroughfare Levy Excess Grant Total Special Revenue Funds Ambulance Park Capital Cumulative Capital Improvement Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction 58,865$ 645,147$ 873,863$ -$ 578,080$ 33,840,986$ 700,994$ 424,569$ 314,781$ $ 286,197 $ 296,530 $ (58,869) 459$ - - - - - - - - - - 114,873 - -- - - - - - - - - - - - -- - - - - - - - - - - - -- - - - - - 148,161 - - - - - -58,865 645,147 873,863 - 578,080 33,840,986 849,155 424,569 314,781 286,197 411,403 (58,869) 459 - 3,126 - - - 193,059 - - 65 - - - -- - - - - 479,159 - - - - - - -- - - - - - - - - - - - -- - - - - 242,300 - - - - - - -- 3,126 - - - 914,518 - - 65 - - - - - - - - - - 123,468 - - - 114,873 - -- - - - - 345,980 - - - - - - - - 642,021 - - 578,080 2,035,444 - - - - - - - - 873,863 - - 14,041,394 - - - - - (58,869) - - - - - - 166,375 - - - 286,197 296,530 - - 58,865 - - - - 107,430 - - - - - - 459 - - - - - 11,826,270 - 424,569 - - - - - -- - --- 4,254,417 -------- - ---- 725,687 ------- - --- 130,024 -- 314,716 ----- - ------------ - --- 19,134 -------- - -----------58,865 642,021 873,863 - 578,080 32,926,468 725,687 424,569 314,716 286,197 296,530 (58,869) 459 58,865$ 645,147$ 873,863$ -$ 578,080$ 33,840,986$ 849,155$ 424,569$ 314,781$ 286,197$ 411,403$ (58,869)$ 459$ Continued on next page.NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017(Continued)City of Carmel, IndianaBALANCE SHEETSpecial Revenue FundsCapital Projects Funds107
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 Capital Lease 2016 Property Tax Bond Construction 1 2016 Property Tax Bond Construction 2 2016 Property Tax Bond Construction 3 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 12 940,731$ 110,017$ 275,149$ 1,774,153$ 936,634$ 161,342$ 367,530$ 148,152$ 242,068$ 244,930$ 1,548,108$ 1,409,832$ 1,387,232$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 940,731 110,017 275,149 1,774,153 936,634 161,342 367,530 148,152 242,068 244,930 1,548,108 1,409,832 1,387,232 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 940,731 - - - - - - - - - - - - - 110,017 275,149 1,774,153 936,634 161,342 367,530 148,152 242,068 244,930 1,548,108 1,409,832 1,387,232 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ------------ - ------------ - ------------ - - ------------ - -----------940,731 110,017 275,149 1,774,153 936,634 161,342 367,530 148,152 242,068 244,930 1,548,108 1,409,832 1,387,232 940,731$ 110,017$ 275,149$ 1,774,153$ 936,634$ 161,342$ 367,530$ 148,152$ 242,068$ 244,930$ 1,548,108$ 1,409,832$ 1,387,232$ Continued on next page.Capital Projects FundsCity of Carmel, Indiana(Continued)For the Fiscal Year Ended December 31, 2017BALANCE SHEETNONMAJOR GOVERNMENTAL 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 2016 Property Tax Bond Construction 13 2017 A Bond Construction Fund Total Capital Projects Funds Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds 366,018$ 3,214,271$ 15,090,828$ 3,853$ 620,587$ (16,258)$ 608,182$ 49,539,996$ - - 114,873 - 102,732 - 102,732 217,605 - - - - - - - - - - - - - - - - - - 148,161 - - - - 148,161 366,018 3,214,271 15,353,862 3,853 723,319 (16,258) 710,914 49,905,762 - - 65 - - - - 193,124 - - - - - - - 479,159 - - - - - - - - - - - - - - - 242,300 - - 65 - - - - 914,583 - - 238,341 - 102,732 - 102,732 341,073 - - - - - - - 345,980 - - 940,731 - - - - 2,976,175 366,018 3,214,271 12,126,567 3,853 620,587 (16,258) 608,182 26,776,143 - - 582,727 - - - - 749,102 - - 459 - - - - 107,889 - - 424,569 - - - - 12,250,839 --- - - - - - - 4,254,417 - - 725,687 - - - -725,687 - - 314,716 - - - -444,740 --- - - - - - -19,134 - - - - - - --366,018 3,214,271 15,115,456 3,853 620,587 (16,258) 608,182 48,650,106 366,018$ 3,214,271$ 15,353,862$ 3,853$ 723,319$ (16,258)$ 710,914$ 49,905,762$ Continued on next page.City of Carmel, IndianaCapital Projects FundsDebt Service FundsNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017(Continued)BALANCE SHEET109
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 1,741,606$ 4,657$ 4,192,752$ 5,942,308$ 88,519$ -$ 40,479$ 75,333$ -$ -$ -$ Investment income37,54619526,330 22,636 623-2,77094--164 Fines and forfeits---------- Licenses and permits------- 17,260 --- Other----450--796 --- Other taxes----------- Contributions--2,10732,384 500-----8,114 General property taxes----------- Income tax----------- Intergovernmental:Grants-----------Shared revenue----- 1,578,420 -----Other Total revenues1,779,152 4,852 4,221,189 5,997,328 90,092 1,578,420 43,249 93,483 --8,278 EXPENDITURES:Current:General government-----------Public safety------57,392 82,488 -- 19,855 Streets and other infrastructure-----------Economic development-----------Culture and recreation-- 3,516,523 5,257,994 -------Debt service:Principal-----------Interest-----------Lease rentals and issuance costs-----------Capital outlay:General government-----------Public safety----------- Streets and other infrastructure----- 4,489,100 -----Economic development-----------Culture and recreation409,680 ---32,778 ------ Total expenditures409,680 - 3,516,523 5,257,994 32,778 4,489,100 57,392 82,488 -- 19,855 Excess (deficiency) of revenues over (under) expenditures1,369,472 4,852 704,666 739,334 57,314 (2,910,680) (14,143) 10,995 -- (11,577) Other financing sources (uses):Transfers in----- 3,843,535 -----Transfers out-- (332,344) (291,921) --(4,440) ----Debt issuance-----------Capital lease proceeds----------- Total other financing sources-- (332,344) (291,921) - 3,843,535 (4,440) ----NET CHANGE IN FUND BALANCES1,369,472 4,852 372,322 447,413 57,314 932,855 (18,583) 10,995 -- (11,577) FUND BALANCES: beginning4,224,657 24,437 2,857,833 2,339,722 55,389 12,234,676 364,369 173,759 6 166,369 25,361 FUND BALANCES: ending5,594,129 29,289 3,230,155 2,787,135 112,703 13,167,531 345,786 184,754 6 166,369 13,784 Continued on next page.City of Carmel, IndianaSpecial RevenueSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017110
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental:GrantsShared revenueOther 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 -$ -$ -$ -$-$-$ -$ 3,295$ 37,413$ -$- --579 -- ---247 - ----- ----- ----- ----- 538,691 - 54,400 - 39,963 ---150 - ----- ----- ---2,925- --- 21,385 - ----- ----- ----- ----- ----- ----- ----- ----- 538,691 - 54,979 2,925 39,963 - 3,295 37,413 21,782 7,447,051 241,415 --- 12,041 ----- ----- --54,120 22,938 - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----7,447,051 241,415 ---12,041 -- 54,120 22,938 (7,447,051) 297,276 - 54,979 2,925 27,922 - 3,295 (16,707) (1,156) 9,028,731 ----- ----- ----- ----- ----- ----- ----- ----9,028,731 ----- ----1,581,680 297,276 -54,979 2,925 27,922 - 3,295 (16,707) (1,156) 2,149,071 226,390 19,134 75,045 62,866 180,493 60 5,848 186,651 29,584 3,730,751 523,666 19,134 130,024 65,791 208,415 60 9,143 169,944 28,428 Continued on next page.(Continued)City of Carmel, IndianaFor the Fiscal Year Ended December 31, 2017Special RevenueSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDS111
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental:GrantsShared revenueOther Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestLease rentals and issuance costsCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers inTransfers outDebt issuanceCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningFUND BALANCES: ending Police Gift Parks Gift Community Relations Gift Economic Development Housing Authority Drug Task Force Thoroughfare Levy Excess Grant Total Special Revenue Funds -$ -$ -$-$ -$ -$ 98,090$ -$ -$ 12,224,452$ 1892621,009 -- 5,271 11,501 -- 109,416 - ----- ----- ----- ---17,260 - - 12,131 --97,928 --- 744,509 - ----- ----30,332 3,639 147,554 --- --13,176 262,116 - ----- ----- ----- ----- ----99,556 -- 1,610,502 1,710,058 - ----- ---1,578,420 30,521 3,901 160,694 -- 202,755 109,591 - 1,623,678 16,646,231 - ----- ---7,700,507 19,716 ---- 269,014 -- 887,150 1,412,673 - ----- ----- ----- ----- 128 135,185 --- ---8,909,830 - ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ---4,489,100 - ----- ----- ----- --- 442,458 19,716 128 135,185 --269,014 -- 887,150 22,954,568 10,805 3,773 25,509 -- (66,259) 109,591 - 736,528 (6,308,337) - ----- ---12,872,266 - ----- --(158,448) (787,153) - ----- ----- ----- ----- ----- --(158,448) 12,085,113 10,805 3,773 25,509 -- (66,259) 109,591 - 578,080 5,776,776 23,350 32,584 112,056 48,565 58,865 708,280 764,272 -- 27,149,692 34,155 36,357 137,565 48,565 58,865 642,021 873,863 - 578,080 32,926,468 Continued on next page.(Continued)City of Carmel, IndianaSpecial RevenueSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017112
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental:GrantsShared revenueOther 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 1,565,403$ 3,315$ -$ -$-$-$ -$ -$-$ -$ -$ 3,772 ---133--81,338 2,154 24,161 ----------------------382 ----625-------211,445 -293,728 --------------------- 3,246,132 ------------------------------2,844-1,385------1,569,557 3,315 214,289 - 3,541,378 625-81,338 2,154 24,161 -----------1,354,856 ----------------------------------------------------------------------------------- 99,677 ---------- 1,199,424 -----131,172 -132,038 246,190 - 601,026 392,199 196,478 106,899 ------------10,795 ----- 275,636 ---1,354,856 10,795 131,172 -132,038 246,190 - 2,175,763 392,199 196,478 106,899 214,701 (7,480) 83,117- 3,409,340 (245,565) - (2,175,755) (390,861) (194,324) (82,738) ---------- 19,575 ---- (3,355,688) ---(130) (128) (548) ----------------- 2,638,693 ------- (3,355,688) -- 2,638,693 (130) (128) 19,027 214,701 (7,480) 83,117-53,652(245,565) -462,938 (390,991) (194,452) (63,711) 510,986 432,049 231,599 286,197 242,878 186,696 459 477,793 501,008 469,601 1,837,864 725,687 424,569 314,716 286,197 296,530 (58,869) 459 940,731 110,017 275,149 1,774,153 Continued on next page.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017(Continued)Capital Projects Funds113
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental:GrantsShared revenueOther 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 2017 A Bond Construction Fund -$-$-$-$-$-$-$-$-$-$-$15,841 19,047 22,094 1,645 19,216 17,887 21,318 19,994 20,215 17,143 12,203 ---------------------------------------------------------------------------------------------------15,841 19,047 22,094 1,645 19,216 17,887 21,318 19,994 20,215 17,143 12,203 -------------------------------------------107,918 ------------------------------------------------------------------641,547 1,615,656 1,387,364 860,021 1,509,563 1,212,091 213,689 165,779 199,910 1,041,186 -----------3,037,706 -----------641,547 1,615,656 1,387,364 860,021 1,509,563 1,212,091 213,689 165,779 199,910 1,041,186 3,145,624 (625,706) (1,596,609) (1,365,270) (858,376) (1,490,347) (1,194,204) (192,371) (145,785) (179,695) (1,024,043) (3,133,421) 24,695 -- 13,729 13,729 - 70,523 23,235 6,560 - 6,347,692 (458)(521)(514) (13,924) (14,247) (430) (499)(461)(469)(417)-----------------------24,237 (521)(514)(195)(518)(430) 70,024 22,774 6,091 (417) 6,347,692 (601,469) (1,597,130) (1,365,784) (858,571) (1,490,865) (1,194,634) (122,347) (123,011) (173,604) (1,024,460) 3,214,271 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 -936,634 161,342 367,530 148,152 242,068 244,930 1,548,108 1,409,832 1,387,232 366,018 3,214,271 Continued on next page.Capital Projects FundsCity of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2017(Continued)114
REVENUES:Charges for services Investment income Fines and forfeits Licenses and permits Other Other taxes Contributions General property taxes Income tax Intergovernmental:GrantsShared revenueOther 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 Total Capital Projects Funds Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds 1,568,718$ -$ -$ -$ -$ 13,793,170$ 218,169 - ---327,585-- ------ ---17,2601,007 - ---745,516505,173 - 262,684 116,417 379,101 884,274-- ---262,1163,246,132 - 3,050,083 1,352,646 4,402,729 7,648,861 -- ------ ---1,710,058 4,229 - 1,240 549 1,789 1,584,438 -5,543,428 - 3,314,007 1,469,612 4,783,619 26,973,278 -- ---7,700,507 1,354,856 - ---2,767,529 -- ----107,918 - ---107,918-- ---8,909,830 --- - 634,000 634,000 634,000-- - 543,588 543,588 543,588-- -----99,677 - ---99,6771,199,424 - ---1,199,424 10,652,808 - - 308,282 308,282 15,450,190 3,037,706 - ---3,037,706 286,431 - ---728,88916,738,820 - -1,485,870 1,485,870 41,179,258 (11,195,392) - 3,314,007 (16,258) 3,297,749 (14,205,980) 6,519,738 - ---19,392,004 (3,388,434) - (2,852,500) - (2,852,500) (7,028,087) -- ----2,638,693 - ---2,638,693 5,769,997 - (2,852,500) - (2,852,500) 15,002,610 (5,425,395) - 461,507 (16,258) 445,249 796,63020,540,851 3,853 159,080 - 162,933 47,853,476 15,115,456 3,853 620,587 (16,258) 608,182 48,650,106 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, 2017 (Continued) 115
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 609,922 609,922 576,873 (33,049)
Transfers to GF for '77 Uniform PERF payment - - - -
Supplies 150 150 -(150)
Other services and charges 3,500 3,500 4,021 521
Capital outlay ----
Total fire pension 613,572 613,572 580,894 (32,678)
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 533,948 533,948 556,229 22,281
Transfers to GF for '77 Uniform PERF payment - - - -
Supplies 300 300 - (300)
Other services and charges 5,200 5,200 1,875 (3,325)
Capital outlay ----
Total police pension 539,448 539,448 558,104 18,656
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, 2017
Budgeted Amounts
Fire Pension Fund
Budgeted Amounts
Fire Pension Fund
116
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 4,821,693 4,089,123
Capital outlay 901,250 901,250 64,286 (836,964)
Total local road & street 1,711,637 1,633,820 4,885,979 3,252,159
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 28,248 (35,943)
Capital outlay 160,103 160,103 102,859 (57,244)
Total cumulative capital improvement 248,587 224,294 131,107 (93,187)
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, 2017
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR FUNDS
(Continued)
117
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 3,505,846 3,014,055
Capital outlay 50,137 50,137 15,480 (34,657)
Debt service 5,809,000 5,809,000 -(5,809,000)
Total cumulative capital development 6,350,928 6,350,928 3,521,326 (2,829,602)
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 - - 2,852,500 2,852,500
Capital outlay - - - -
Debt service 2,948,000 2,948,000 -(2,948,000)
Total redevelopment bond 2,948,000 2,948,000 2,852,500 (95,500)
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, 2017
(Continued)
Budgeted Amounts
Redevelopment Bond
Budgeted Amounts
Redevelopment Bond
Budgeted Amounts
118
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 47,821 (118,835)
Supplies 23,025 23,025 1,929 (21,096)
Other services and charges 39,455 41,455 5,867 (35,588)
Capital outlay 20,200 20,200 5,132 (15,068)
Total deferral fund 190,811 251,336 60,749 (190,587)
Deferral Fund
Budgeted Amounts
Deferral Fund
NONMAJOR FUNDS
For the Fiscal Year Ended December 31, 2017
(Continued)
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
119
City of Carmel, Indiana
NONMAJOR ENTERPRISE FUNDS
The 4CDC Rental Service Fund accounts for the rental and maintenace operations of the 4CDC office building.
120
4CDC Rental Service Fund
ASSETS:
Current:
Cash and cash equivalents $193,512
Due from Water Fund -
Receivables 4,076
Total current assets 197,588
Noncurrent, capital assets:
Land, improvements to land, and construction in progress -
Utility plant in service, net of depreciation -
Total noncurrent assets -
Total assets 197,588
LIABILITIES:
Current:
Accounts payable 22,792
Due to related city -
Tenant taxes payable 66,103
Rent paid in advance 78,341
Bonds payable, current portion -
Total current liabilities 167,236
Noncurrent, bonds payable:
Total liabilities 167,236
NET POSITION:
Net investment in capital assets -
Restricted -
Unrestricted 30,352
Total net position 30,352$
City of Carmel, Indiana
STATEMENT OF NET POSITION
Nonmajor Enterprise Funds
December 31, 2017
121
4CDC Rental Service Fund
OPERATING REVENUE:
Charges for services -$
Rent 1,010,911
Other operating revenue 56,954
Total operating revenues 1,067,865
OPERATING EXPENSES:
Office building maintenance 769,837
Drainage projects -
Other -
Total operating expenses 769,837
OPERATING INCOME (LOSS)298,028
OTHER FINANCING SOURCES (USES):
Transfers in -
Transfers out, governmental funds (225,000)
Investment income -
Total other financing sources (uses)(225,000)
CHANGE IN NET POSITION 73,028
NET POSITION: beginning (42,676)
NET POSITION: ending 30,352$
City of Carmel, Indiana
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Nonmajor Enterprise Funds
December 31, 2017
122
4CDC Rental Service Fund
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 1,134,747$
Payments to suppliers (759,220)
Net cash provided (used) by operating activities 375,527
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 (225,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS 150,527
CASH AND CASH EQUIVALENTS: beginning 42,985
CASH AND CASH EQUIVALENTS: ending 193,512$
Continued on next page.
Nonmajor Enterprise Funds
For the Fiscal Year Ended December 31, 2017
City of Carmel, Indiana
STATEMENT OF CASH FLOWS
123
4CDC Rental Service Fund
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED)
BY OPERATING ACTIVITIES:
Operating income (loss)298,028$
Adjustments to reconcile operating income (loss) to
net cash provided (used) by operating activities:
Nonoperating income (expense)
(Increase) decrease in assets:
Accounts receivable (4,076)
Other 70,958
Interfund receivables -
Increase (decrease) in liabilities:
Accounts payable 6,978
Other current liabilities 3,639
Total adjustments 77,499
Net cash provided (used) by operating activities 375,527$
Nonmajor Enterprise Funds
For the Fiscal Year Ended December 31, 2017
(Continued)
City of Carmel, Indiana
STATEMENT OF CASH FLOWS
124
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.
125
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 147,471$ $ 26,027 $ 173,498 132,524$ -$ $ 132,524 Receivable from State of Indiana46,531 48,201 94,732 Total assets194,002 74,228 268,230 132,524 - 132,524 LIABILITIES:Payroll withholdings46,531 48,201 94,732 - - - Court escrow- - - 132,524 - 132,524 Total liabilities46,531 48,201 94,732 132,524$ -$ 132,524$ NET POSITION: restricted for pensions147,471$ 26,027$ 173,498$ City of Carmel, IndianaDecember 31, 2017COMBINING STATEMENTS OF FIDUCIARY NET POSITION - PENSION AND AGENCY FUNDS126
1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust FundsADDITIONS:State of Indiana contributions 557,208$ 577,369$ 1,134,577$ Investment income882 224 1,106 Miscellaneous revenue- - - Total additions558,090 577,593 1,135,683 DEDUCTIONS:Benefits557,214 577,920 1,135,134 Other services and charges1,875 4,021 5,896 Total deductions559,089 581,941 1,141,030 NET INCREASE (DECREASE) IN NET POSITION(999) (4,348) (5,347) NET POSITION: beginning148,470 30,375 178,845 NET POSITION: ending - restricted for pensions147,471$ 26,027$ 173,498$ COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - PENSION FUNDSCity of Carmel, IndianaFor the Fiscal Year Ended December 31, 2017127
City Court Agency Fund Payroll Agency Fund Total Agency FundsASSETS AT JANUARY 1, 2017190,229$ -$ 190,229$ Additions1,797,241 54,132,065 55,929,306 Deductions(1,854,946) (54,132,065) (55,987,011) ASSETS AT DECEMBER 31, 2017132,524$ -$ 132,524$ LIABILITIES AT JANUARY 1, 2017190,229$ -$ 190,229$ Additions1,797,241 54,132,065 55,929,306 Deductions(1,854,946) (54,132,065) (55,987,011) LIABILITIES AT DECEMBER 31, 2017132,524$ -$ 132,524$ For the Fiscal Year Ended December 31, 2017COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES - ALL AGENCY FUNDSCity of Carmel, Indiana128
City of Carmel, Indiana
Comprehensive Annual Financial Report
Contents Pages
Financial Trends 130 - 135
Revenue Capacity 136 - 139
Debt Capacity 140 - 143
Demographic and Economic Information 144 - 145
Operating Information 146 - 147
Note: The City is presenting its third 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.
129
City of Carmel, Indiana
Net Position by Component
For the Fiscal Year Ended December 31, 2017
2017 2016 2015
Governmental activities:
Net investment
in capital assets 344,721,169$ 299,216,267$ 314,601,738$
Not spendable -- -
Restricted 30,924,357 25,355,156 25,629,325
Unrestricted (83,269,698) (35,777,877) (42,319,616)
Total governmental
activities net position 292,375,828$ 288,793,546$ 297,911,447$
Business-type activities:
Net investment
in capital assets 118,497,972$ 116,495,474$ 113,210,726$
Not spendable - - -
Restricted - - -
Unrestricted (9,695,164) (4,011,279) (1,147,670)
Total business-type
activities net position 108,802,808$ 112,484,195$ 112,063,056$
Primary government:
Net investment
in capital assets 463,219,141$ 415,711,741$ 427,812,464$
Not spendable -- -
Restricted 30,924,357 25,355,156 25,629,325
Unrestricted (92,964,862) (39,789,157) (43,467,286)
Total primary government
net position 401,178,636$ 401,277,741$ 409,974,503$
Note: The City is presenting its third CAFR since 2007. Accordingly, a 10-year history is
not presented for certain statistical section presentations.
130
City of Carmel, Indiana
Changes in Net Position
For the Fiscal Year Ended December 31, 2017
2017 2016 2015
Expenses:
Governmental activities:
General government 30,372,875$ 30,984,884$ 20,841,943$
Public safety 41,085,416 40,267,560 42,151,467
Streets and other infrastructure 25,476,391 12,340,719 29,584,125
Economic development 16,711,747 54,995,901 10,771,611
Culture and recreation 17,932,242 10,122,290 18,549,674
Unallocated interest expense 18,217,810 5,545,855 4,542,707
Total governmental activities expenses 149,796,481 154,257,210 126,441,527
Business-type activities:
Water 20,824,320 19,439,437 13,542,037
Sewer 10,451,835 10,016,870 7,305,928
Storm Water 5,367,154 1,651,075 -
Other 769,837 706,935 895,780
Total business-type activities expenses 37,413,146 31,814,317 21,743,745
Total primary government expenses 187,209,627$ 186,071,527$ 148,185,272$
Program Revenues:
Governmental activities:
Charges for services:
General government 211,995$ 82,803$ 72,056$
Public safety 1,726,580 1,470,638 1,152,600
Streets and other infrastructure 98,090 248,036 480
Economic development 52,093 - -
Culture and recreation 12,818,388 11,585,645 7,345,221
Operating grants and contributions:
General government - - -
Public safety 96,894 112,651 60,618
Streets and other infrastructure - - -
Economic development - - -
Culture and recreation - - -
Capital grants and contributions:
General government - - -
Public safety - - -
Streets and other infrastructure 1,906,397 865,258 3,516,506
Economic development - - -
Culture and recreation - - 50,043
Total governmental activities revenues 16,910,436$ 14,365,031$ 12,197,524$
Continued on next page.
131
CITY OF CARMEL
Changes in Net Position
Fiscal Year ended December 31, 2016
(Continued)
Business-type activities:
Charges for services
Water 16,982,790$ 15,458,695$ 13,500,929$
Sewer 9,638,861 9,303,554 8,471,996
Storm Water 3,295,837 3,222,138 -
Other 1,067,865 1,034,682 4,038,620
Operating grants and contributions
Water - - -
Sewer - - -
Capital grants and contributions
Water 4,995,765 4,620,949 -
Sewer 336,363 552,460 -
Total business-type activities revenues 36,317,481 34,192,478 26,011,545
Total primary government revenues 53,227,917$ 48,557,509$ 38,209,069$
Net (expense) revenue and changes in net position:
Governmental Activities (132,886,045)$ (139,892,179)$ (114,244,003)$
Business-Type Activities (1,095,665) 2,378,161 4,267,800
(133,981,710) (137,514,018) (109,976,203)
GENERAL REVENUES AND TRANSFERS:
Property tax 52,042,841 52,989,360 44,104,576
Income tax 41,801,838 36,700,613 32,745,504
Other taxes 30,326,364 28,850,762 26,154,361
Unrestricted investment earnings 2,723,267 574,253 155,461
Other 15,522,157 16,797,331 20,679,190
Transfers - - -
Total general revenues and transfers 142,416,467 135,912,319 123,839,092
CHANGE IN NET POSITION BEFORE SPECIAL ITEMS 8,434,757 (1,601,699) 13,862,889
SPECIAL ITEM: gain - - 619,000
Total CHANGE IN NET POSITION 8,434,757 (1,601,699) 14,481,889
NET POSITION: beginning 401,190,880 409,974,503 395,492,614
Restatement (8,447,001) (7,095,064) -
NET POSITION: beginning, adjusted 392,743,879 402,879,439 395,492,614
NET POSITION: ending 401,178,636$ 401,277,741$ 409,974,503$
Total primary government net (expense) revenue
Note: The City is presenting its third CAFR since 2007. Accordingly, a 10-year history is not presented
for certain statistical section presentations.
132
2017 2016 2015
General Fund:
Nonspendable -$ -$ -$
Restricted - - -
Committed - - -
Assigned 1,803,672 1,910,880 1,416,155
Unassigned 15,034,935 15,066,402 14,008,886
Total General Fund 16,838,607$ 16,977,282$ 15,425,041$
All Other Governmental Funds:
Nonspendable -$ -$ -$
Restricted 256,581,733 257,811,177 43,069,142
Committed 5,443,978 3,212,225 1,115,637
Assigned - - -
Unassigned - - (249,855)
Total all other governmental funds 262,025,711$ 261,023,402$ 43,934,924$
City of Carmel, Indiana
Fund Balances of Governmental Funds
Note: The City is presenting its third 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)
133
2017 2016 2015
Revenues:
Property tax 52,259,944$ 52,647,063$ 44,043,914$
Income tax 37,187,574 46,625,784 28,847,934
Other local tax 30,326,364 28,850,762 26,154,361
Charges for services 14,907,146 12,901,368 8,570,357
Investment income 2,339,501 442,961 74,597
Licenses and permits 2,490,849 2,441,853 2,159,234
Fines and forfeits 466,731 571,556 788,604
Intergovernmental:
Grants 1,710,058 1,191,485 3,062,731
Fire service contract -6,825,041 4,870,501
State shared revenue 2,736,296 1,198,398 1,116,639
Other 5,995,761 --
Contributions 262,116 660,714 286,716
Other 4,336,810 5,858,544 10,915,190
Total revenues 155,019,150 160,215,529 130,890,778
Expenditures:
Current:
General government 29,533,750 28,670,916 20,135,899
Public safety 40,261,813 38,547,773 45,026,384
Streets and other infrastructure 13,258,597 13,540,350 13,784,488
Economic development 1,319,474 5,074,808 4,284,583
Culture and recreation 12,938,526 13,397,374 13,432,578
Debt service:
Principal 18,808,576 17,387,515 15,768,608
Interest 26,688,864 17,763,071 17,223,247
Capital outlay:
General government 707,523 2,931,360 119,885
Public safety 1,327,731 1,925,392 3,710,693
Streets and other infrastructure 60,138,533 25,097,876 4,445,749
Economic development 34,138,220 16,809,771 2,439,830
Culture and recreation 747,324 734,053 422,388
Total expenditures 239,868,931 181,880,259 140,794,332
Excess (deficit) of revenues
over (under) expenditures (84,849,781)(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
134
2017 2016 2015
Other financing sources (uses)
Bond issuance - principal 81,358,423 199,265,510 -
Bond issuance - premium 3,334,569 35,087,956 -
Proceeds - refunding 23,180,000 18,170,404 -
Capital lease proceeds 2,638,693 2,294,226 3,167,006
Payment to refunded bond escrow agent (26,501,547)(17,909,681)-
Transfers in 126,937,135 278,264,371 30,928,247
Transfer in from associated utility 1,703,277 1,606,319 1,014,100
Transfers out (126,937,135) (278,264,371)(30,928,247)
Total other financing sources (uses)85,713,415 238,514,734 4,181,106
Total change in fund balances 863,634$ 216,850,004$ (5,722,448)$
Total debt service expenditures as a percentage
of noncapital expenditures 28.9%23.4%25.0%
(Continued)
Note: The City is presenting its third 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
135
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 Rate20176,474,642,116436,043,9656,910,686,081 12,552,181,043 55.1% 0.789520166,220,543,748420,168,7706,640,712,518 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% 0.5033Source: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. 136
City of Carmel, IndianaDirect and Overlapping Property Tax Rates(Rate per $100 of assessed value)Last Ten Fiscal Years2017201620152014201320122011201020092008City Direct Rates:Corporation General0.57410.5745 0.5088 0.5381 0.5459 0.5284 0.5266 0.4578 0.3969 0.3147Motor Vehicle Highway 0.10270.1701 0.1643 0.1249 0.1268 0.1080 0.0777 0.1291 0.1490 0.1153Cumulative Sewer 0.00000.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0166 0.0166Debt Service0.01950.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000Redevelopment Bond0.04400.0424 0.0000 0.0101 0.0000 0.0160 0.0145 0.0331 0.0565 0.0449Lease Rental Payment0.00000.0000 0.0000 0.0000 0.0000 0.0000 0.0144 0.0133 0.0143 0.0118Cumulative Capital Development0.04920.0486 0.0276 0.0276 0.0280 0.0264 0.0332 0.0331 0.0331 0.0000Total Direct Rate0.78950.8356 0.7007 0.7007 0.7007 0.6788 0.6664 0.6664 0.6664 0.5033Overlapping Rates:State0.00320.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0024County0.28140.2814 0.2926 0.3054 0.3074 0.2901 0.2769 0.2724 0.2651 0.2046Solid Waste0.00000.0032 0.0033 0.0033 0.0033 0.0032 0.0030 0.0030 0.0029 0.0023Township - Clay0.06940.0673 0.0746 0.0719 0.0781 0.0693 0.0753 0.0674 0.0945 0.0575Library0.07600.0778 0.0787 0.0787 0.0765 0.0682 0.0657 0.0657 0.0657 0.0494Carmel Clay School Corp0.82910.8053 0.8106 0.8453 0.8591 0.7911 0.8990 0.6460 0.6373 1.1895Total Direct and Overlapping Rate 2.0486 2.0706 1.9605 2.0053 2.0251 1.9007 1.9863 1.7209 1.7319 2.0090Source: 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 Indianagencies. 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 fHomestead 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 tcapped at 3%. Property taxes approved by referendum are not subject to these limitations.137
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 1.59% Duke Realty 147,134,300 2.24%Carmel Lofts LLC45,914,900 0.71% Clarion Health North146,743,500 2.23%Clay Terrace Partners LLC31,299,100 0.48% Carmel Indy Properties LLC56,539,300 0.86%KR Spring Mill Apartments LLC30,341,500 0.47% TIC Carmel Center Furnas LLC 32,712,800 0.50%Carmel Center Apartments LLC29,006,200 0.45% Clay Terrace Partners LLC31,929,500 0.49%Parkwood Four & Five LLC28,316,400 0.44% HCRI Indiana Properties LLC27,044,500 0.41%Edward Rose Development Carmel LLC 27,347,900 0.42% Mohawk Associates LLC23,697,600 0.36%SNH LTA Properties GA LLC27,262,600 0.42% Providence Housing23,186,800 0.35%Providence HUD LLC25,373,500 0.39% North Haven Apartments23,103,800 0.35%HR of Indiana LLC25,227,900 0.39% Liberty Parkwood Crossing LLC 22,225,100 0.34%373,108,600 5.76%534,317,200 8.13%Source: Hamilton County Auditor's office.20172008138
City of Carmel, IndianaProperty Tax Levied and CollectedLast Ten Fiscal YearsFiscalYear Total Taxes Levied Total Taxes Collected Percentage of Levy201752,180,837 50,907,298 97.56%201655,990,426 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%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 2017, total delinquent property tax due to the City for 2017 and all prior years was approximately $3,978,520.139
City of Carmel, IndianaLegal Debt MarginLast Ten Fiscal Years201720162015Certified net assessed valuation6,994,981,173$ 6,700,625,433$ 6,481,570,742$ 2% statutory debt limit2.0% 2.0% 2.0%Subtotal 139,899,623 134,012,509 129,631,415 divided by 3 3.0 3.0 3.0 Debt limit46,633,208 44,670,836 43,210,472 Net debt applicable to debt limit(29,641,000) (33,580,000) (15,417,000) Legal debt margin16,992,208$ 11,090,836$ 27,793,472$ Legal debt margin as percentage of debt limit36.44% 24.83% 64.32%Source: Indiana Department of Local Government Finance budget orders.Note: The City is presenting its third CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.140
City of Carmel, IndianaRatios of Outstanding Debt by TypeSinking FundPrincipal Amount Used to Repay Debt 2017 721,260,757 7,315,666 728,576,423 172,348,990 721,688 173,070,678 1,845,286 899,801,815 14.56% 9,881 13.02%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 660,449,791 6,836,403 667,286,194 177,659,704 562,700 147,318,693 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 third 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 Activities141
City of Carmel, IndianaDirect and Overlapping Debtat December 31, 2017PercentAmountApplicable to Applicable toGovernmental UnitOutstanding DebtCarmel (1)CarmelDirect Debt:City of Carmel (see page 141) 728,576,423$ 100%728,576,423$ Overlapping Debt Paid with Property Taxes:Carmel Clay School Corporation121,925,000 78.73%95,992,946 Carmel Clay Public Library4,695,000 97.55%4,580,100 Clay Township35,445,000 97.55%34,577,557 Hamilton County137,450,000 34.96%48,050,758 Other Overlapping Debt:Hamilton County Tax Increment Bonds10,045,000 0.00%- Sub-Total Overlapping Debt:309,560,000$ 183,201,360 Total Direct and Overlapping Debt:911,777,783$ Population - 2017 (2)91,065 Estimated direct and overlapping debt per capita10,012$ Note:(2) 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.142
City of Carmel, IndianaPledged Revenue CoverageNet Revenue Net RevenueOperating Operating Available forCoverageOperating Operating Available forCoverageRevenueExpenses (1)Debt ServicePrincipalInterest(2)RevenueExpenses (1)Debt ServicePrincipalInterest(2)2017 16,982,790$ 11,035,945$ 5,946,845$ 2,797,000$ 5,901,623$ 68%9,638,861$ 7,300,561$ 2,338,300$ 1,288,670$ 538,490$ 128%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 third CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.December 31, 2017Water UtilitySewer UtilityDebt Service RequirementsDebt Service Requirements143
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)201791,065 39.267,872 6,180,801,624 97.5%16,0822.8%201689,029 39.967,191 5,981,947,539 96.5%15,9543.2%201588,713 38.565,197 5,783,821,461 95.8%15,9713.3%201486,682 38.462,931 5,454,984,942 96.9%15,9124.0%201385,929 38.759,917 5,148,607,893 96.3%15,7244.8%201283,595 38.459,170 4,946,316,150 94.3%15,7505.0%201181,633 38.256,629 4,622,795,157 93.8%15,4935.3%201079,191 38.053,247 4,216,683,177 93.0%15,4985.9%200978,265 37.352,218 4,086,841,770 90.9%15,2186.2%200876,889 37.856,708 4,360,221,412 86.6%14,9273.5%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 2008-2016. 2017 estimate based on trend.(4) National Center for Educational Statistics(5) Indiana Department of Education Corporate enrollment, Carmel Clay Schools(6) Bureau of Labor Statistics144
City of Carmel, IndianaPrincipal EmployersCurrent Year and Nine Years AgoPercentage of Total City Percentage of Total City CompanyIndustryEmployeesRankEmploymentCompanyEmployeesRankEmploymentCarmel Clay SchoolsPublic education2,410 1 5.06% Carmel Clay Schools2,469 1 6.79%CNO Financial GroupLife insurance holding company1,709 2 3.59% Conseco Inc (now CNO Financial Group)2,036 2 6.17%KAR Auction Services Inc.Automotive remarketing services1,600 3 3.36% Marsh Supermarkets1,235 3 3.74%Liberty MutualInsurance company1,430 4 3.00% Clarian North Medical Center (now IU Health North) 1,150 4 3.48%GEICOAuto insurance company1,114 5 2.34% Liberty Mutual/Indiana Insurance750 5 2.27%Resort Condominium Int’l. (RCI) Vacation exchange network and services1,100 6 2.31% City of Carmel700 6 2.12%IU Health NorthAcute healthcare facility1,080 7 2.27% St. Vincent Carmel Hospital664 7 2.01%NextGear CapitalAutomotive dealer financial services provider1,057 8 2.22% Independent Transmission System Operator600 8 1.82%The Capital GroupFinancial Services1,000 9 2.10% TCL - Thomson Electronics550 9 1.67%Midcontinent ISOElectric power grid management802 10 1.68% St. Vincent Heart Center500 10 1.51%Sources: Hamilton County Economic Development Corporation Company Officials Carmel Clay School Corporation Bureau of Labor Statistics20172008145
2017 2016 2015
General Government:
Clerk-Treasurer 9 8 6
Mayor 333
City Council 7 7 7
Board of Public Works 2 2 2
Plan Commission 9 11 11
Administration 3 2 4
City Court 7 7 7
Law Department 6 6 8
Community Services 21 22 22
Community Relations 6 5 4
Public Safety:
Police
Officers 114 109 117
Civilians 23 23 26
Fire
Firefighters and Officers 147 153 166
Civilians 8 8 9
Culture and Recreation:
Parks Department 65 64 62
Brookshire Golf 4 4 4
Utilities (Water and Sewer)104 103 109
Other Programs:
Human Resources 3 3 3
Street 48 48 52
Engineering 151516
Information Systems 9 9 9
Communication Center 4 6 4
Redevelopment 2 3 1
TOTAL 619 621 652
Source: City of Carmel Department Heads
Note: The City is presenting its third 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
146
2017 2016 2015
General Government:
Community Services
Permits issued 1,557 1,351 1,237
Residential Construction Permits 463 429 359
Total # Dwelling Units 759 432 1,663
Building inspections performed 472 431 476
Public Safety:
Police
Incidents 85,200 83,955 83,904
Occurred Incidents 4,010 4,270 4,330
Fire
Emergency Medical Responses 5,136 4,755 4,402
Fire-Related Calls for Service 2,906 2,592 2,312
Carmel Clay Parks:
Number of parks and greenways 17 16 15
Total acres 505 505 505
Total trail miles 16 16 16
Streets:
Number of "center lane" miles streets 486 482 482
Number of roundabouts 116 111 97
Source: City of Carmel Department Heads; Carmel Clay Parks
Note: The City is presenting its third 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
147