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HomeMy WebLinkAbout2022 Annual Comprehensive Financial ReportAnnual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 Board of Public Works and Safety Prepared by: CITY OF CARMEL, INDIANA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended December 31, 2022 This page has been intentionally left blank. INTRODUCTORY SECTION Pages Letter of Transmittal 8–17 GFOA Certificate of Achievement 18 Organizational Chart 19 List of Elected and Appointed Officials 20–21 FINANCIAL SECTION Independent Auditor's Report 23–25 Management's Discussion and Analysis 26–35 Basic Financial Statements: Government‐wide Financial Statements: Statement of Net Position 36 Statement of Activities 37 Fund Financial Statements: Governmental Funds: Balance Sheet ‐ Governmental Funds 38 Reconciliation of the Balance Sheet ‐ Governmental Funds to the Government‐wide Statement of Net Position 39 Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Funds 40–41 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Funds to the Government‐wide Statement of Activities 42 Proprietary Funds: Statement of Net Position ‐ Proprietary Funds 43–44 Statement of Revenues, Expenses, and Changes in Net Position ‐ Proprietary Funds 45–46 Statement of Cash Flows ‐ Proprietary Funds 47–48 Fiduciary Funds: Statement of Fiduciary Net Position - Fiduciary Funds 49 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 50 Notes to the Basic Financial Statements 51–87 Required Supplementary Information: Other Post-Employment Benefits Plan Schedule of Changes in Total OPEB Liability and Related Ratios 88 Schedule of Total OPEB Liability 89 Notes to Schedules 90–91 1925 Police Officers' And 1937 Firefighters' Pension Plans: Schedule of Employer Contributions 92 Schedule of Net Pension Liability and Related Ratios 93 Schedule of Changes in Net Pension Liability 94 Notes to Schedules 95 Defined Benefit Pension Plans - Multiple Employer Plans: Schedule of the City's Proportionate Share of the Net Pension Liability 96–97 Schedule of City Contributions 98 Notes to Schedules 99 City of Carmel, Indiana Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2022 TABLE OF CONTENTS Pages Budgetary Comparison Schedules - General Fund 100–103 Notes to the Required Supplementary Information - Budgetary Comparison Schedules 104 Supplementary Information: Nonmajor Governmental Funds - Information 105–108 Combining Balance Sheet - Nonmajor Governmental Funds: Special Revenue Funds 109–115 Capital Projects Funds 116–118 Debt Service Funds 119 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor Governmental Funds: Special Revenue Funds 120–126 Capital Projects Funds 127–129 Debt Service Funds 130 Budgetary Comparison Schedules ‐ Nonmajor Funds 131–134 Fiduciary Funds - Information 135 Combining Statement of Fiduciary Net Position - Pension Funds 136 Combining Statement of Fiduciary Net Position - Custodial Fund 137 Combining Statement of Changes in Fiduciary Net Position - Pension Funds 138 Combining Statement of Changes in Fiduciary Net Position - Custodial Fund 139 STATISTICAL SECTION Financial Trends: Net Position by Component 141 Changes in Net Position 142–143 Fund Balances ‐ Governmental Funds 144 Changes in Fund Balances ‐ Governmental Funds 145–146 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 147 Property Tax Rates - Direct and Overlapping Governments 148 Principal Property Taxpayers 149 Property Tax Levies and Collections 150 Debt Capacity: Legal Debt Margin Information 151 Ratios of Outstanding Debt by Type 152 Ratios of General Bonded Debt Outstanding 153 Direct and Overlapping Governmental Activities Debt 154 Pledged‐Revenue Coverage 155 Demographic and Economic Information: Demographic and Economic Statistics 156 Principal Employers 157 Operating Information: City Government Employees by Function/ Program 158 Operating Indicators and Capital Asset Statistics by Function/ Program 159 TABLE OF CONTENTS (CONTINUED) For the Fiscal Year Ended December 31, 2022 City of Carmel, Indiana Annual Comprehensive Financial Report INTRODUCTORY SECTION Introductory Section: Letter of Transmittal Certificate of Achievement – Government Finance Officers Association City of Carmel Organization Chart List of Principal Officials Photo courtesy City of Carmel. Photo by Jeff Bradley This page has been intentionally left blank. June 21, 2023 To the Honorable Members of the Carmel City Council, and Citizens of the City of Carmel, Indiana: We are pleased to submit the Annual Comprehensive Financial Report (“Report”) for the City of Carmel (“City”) year ended December 31, 2022. 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 control 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 City’s audit for 2022 was performed by the independent certified public accounting firm of FORVIS. Their audit was conducted in accordance with generally accepted governmental auditing standards. The independent certified public accounting firm concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified (clean) opinion that the City of Carmel’s financial statements for the year ended December 31, 2022, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the financial section, on page 23 of this report. 8 GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statement in the form of management’s discussion and analysis (MD&A). The MD&A complements this letter of transmittal and should be read in conjunction with it. The City’s MD&A can be found immediately following the independent auditors’ report in the financial section of the report. CITY PROFILE The City of Carmel was incorporated in 1874 and is located in Hamilton County, directly north of Indianapolis. The City occupies nearly 49 square miles, with more than 524 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 101,759 according to the U.S. Census Bureau's 2021 Census. Personal income statistics are above national and State of Indiana averages. The median household income level is $115,109, and the median value of a home is $352,400. 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 significantly lower than that of the State of Indiana throughout 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 consistently ranks as one of the best places to live in Indiana and the United States. In 2022, Carmel was the No. 1 best place to live (Niche), No. 1 best place to raise a family (Niche), No. 1 best public schools in Indiana (Niche), No. 1 best place to retire in the U.S. (Money) and we have the No. 1 best holiday market in the United States (USA Today). The proximity of Carmel to Indianapolis provides increased employment and higher education opportunities for residents. City Structure In 2022, the City operated under elected officials including the Mayor, City Clerk, Judge and a nine-member City Council pursuant to Indiana law. The Mayor serves as the chief executive of the City and serves a four-year term. The City Controller is appointed by the Mayor and is responsible for the financial records of the City. The legislative and fiscal body for the City is the City Council. The nine-member Council is comprised of three at-large and six district representatives who are elected to serve four-year terms. The Council meets formally twice a month to conduct City business. Its duties include the enactment of all ordinances and resolutions and approval of the annual budget. The administrative body for the City is the Board of Public Works and Safety. This three-member board consists of the Mayor, who serves as the presiding officer, and two mayoral appointees. This board is responsible for bidding infrastructure projects as well as other duties prescribed by Indiana state law. 9 The City provides services in the following areas: public safety (police, fire, EMS, and emergency communications), community services (planning, code enforcement, and economic development), parks and recreation, transportation (streets and sidewalks), engineering, storm water drainage, court, and general administrative services. In addition, the City provides water and wastewater utility services. The City of Carmel includes several departments and services, including Community Services, Community Relations and Economic Development, Redevelopment, Engineering, Human Resources, Street Department, Law, Administration, Information Systems, Police, Fire, Brookshire Golf Club and the Carmel Water and Sewer Utilities. The City employs a total of 622 full-time employees, with union representation as follows: Carmel Professional Firefighters / IAFF #4444 Firefighters 164 Fraternal Order of Police Lodge #185 Police 137 The unions negotiate contracts with the City, but they are not collective bargaining units. Planning and Zoning The Carmel Plan Commission promotes orderly growth throughout the City. The nine-member Plan Commission is appointed by the Mayor (5), City Council (1), Park Board (1), City Engineer (1), and Board of Public Works (1). The Board of Zoning Appeals has five members appointed by the Mayor, City Council, and Plan Commission. Component Units Certain financing and economic development functions are provided by a legally separate redevelopment authority, five 501(c)(4) corporations, and a statutory local 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 City’s financial statements. Additional information on these entities can be found in Note I.B. of the notes to the financial statements. CITY ECONOMIC CONDITION The City of Carmel has experienced extensive residential and commercial development in recent years and has been one of the fastest growing areas in the Indianapolis Metropolitan Area. More than 130 companies have international, national or regional headquarters located in the City. Hamilton County has the second highest per capita income and highest median household income in the State of Indiana. 10 The newest or expanded businesses in the City include Republic Airways which purchased land along the U.S. 31 corridor to build a new corporate headquarters and an airline pilot advanced training center. The $200 million aviation campus will bring in 1,900 new jobs to Carmel. There are also several redevelopment projects under construction, including: 1st on Main - A 1.7-acre mixed use project in the heart of the Arts & Design District. This $40 million project will include apartments, condos, office and retail space and a 310 space public parking garage. Melange – A $30 million residential project with for-sale townhomes and flats located along the Monon Greenway. The project replaces underused parking lots with a vibrant, urban neighborhood south of City Center. North End – A $100 million, mixed-use project with 388 apartments, 40 condos, 46 townhomes, 10 single family homes and more than 28,000 square feet of retail/office space. The Signature – A $78 million project with 16,000 square feet of ground floor retail space, apartments, owner-occupied condos, office/retail space and a public parking garage. Several established major employers in the City include GEICO with 1,500 employees, Liberty Mutual Insurance with 1,450 employees, RCI (formerly Resort Condominium International) with 1,125 employees, KAR Global with approximately 1,000 employees, The Capital Group with approximately 975 employees, Next Gear Capital with 694 employees, Allied Solutions with more than 500 employees, Delta Faucet with 400 employees, and Duke Realty with 252 employees. Along US 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, American Specialty Health, Blue Horseshoe Solutions (now part of Accenture), CNO Financial Group, Monster.com, Encore Sotheby’s International Realty, and Liberty Mutual Insurance are among the many office complexes which line the Meridian Corridor for five miles from 96th Street to 146th Street. In addition to these corporate headquarters, the Corridor's strength as a provider of medical services is attested to by numerous health care facilities, including St. Vincent Carmel Hospital and its Women’s Center, St. Vincent Heart Center, I.U. Health North Hospital and its Cancer Center, and Franciscan Health Carmel, which opened in 2022 a new campus with a full-service hospital. Goodman Campbell Brain and Spine is now open at a $17.6-million facility along the Meridian Corridor. A $47-million project for Zotec Partners expanded the company’s corporate campus in 2022 and created 300 additional jobs. The Bridges is a 65-acre mixed-use, master planned development located on the west side of US 31 in the Meridian Corridor. More than 250,000 square feet of restaurant and retail space, including a Market District store, serves 59,000 nearby workers, and attracts customers from inside and outside Carmel. To the east of Meridian Corridor, a major mixed-use development, “The Olivia on Main,” is now open. This $30-million development includes 200 luxury apartments above ground floor retail developed by Keystone Corporation; and “Grand and Main,” an $80-million development that includes townhomes, apartments, a retirement community, retail space and a hotel. Nearby is the Avant Luxe apartments that are now open. 11 IMPACT OF COVID-19 PANDEMIC The City received $3,761,460 from the U.S. Treasury on July 25, 2022, from the American Rescue Plan Act of 2021 (“ARP”). The ARP established the Coronavirus Local Fiscal Recovery Fund (“Fund”) and appropriated money for allocations to metropolitan cities, non-entitlement units and counties. All appropriated money remains available through December 31, 2024. The City received $121,540 from FEMA in 2022 for Covid-19 Public Assistance conducted by the Fire Department, $1,004,208 for the City and $16,952 for the Parks. 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 an 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 the City’s total miles of paths and trails to more than 195. 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 Actors Theatre of Indiana, the Gregory Hancock Dance Theatre, Indiana Wind Symphony, Booth Tarkington Civic Theatre and the Carmel Symphony Orchestra. Carter 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 attracted 110,000 visitors to its Saturday morning markets in 2021. The Carmel Christkindlmarkt and the Ice at Carter Green is a winter wonderland with shops, dining options, skating and entertainment in the fresh crisp air, attracting more than 450,000 visitors in 2022. The Christkindlmarkt was voted the No. 1 Best Holiday Market in North America by USA Today readers in 2021 and 2022. 12 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 expanded Monon Greenway and Midtown Plaza continued to provide outdoor public spaces to give residents and visitors an opportunity to venture out for some much-needed experiences with nature. Among the amenities, this linear park features unique outdoor, all-weather games that allow visitors to play ping pong and pool; an outdoor stage for live music; outdoor seating; green space; outdoor fireplace and a 16-foot-wide digital video screen on which the City shows family-friendly movies and live sporting events. The Carmel Clay Public Library is one of the busiest public libraries in the State of Indiana, serving resident of the City. In 2022, the library completed construction of new library and campus on Main Street, a $40-million expansion that includes additional teen space, additional programming space, functional outdoor space, and a parking garage. 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. Inside the new facility, the library operates a Digital Media Lab 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 Indiana Department of Education reports 2021 enrollment for the School Corporation at 16,174 students, and the Superintendent’s Office reports 1,082 full- time educators. 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 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, free public parking garages and monuments designed to create a vibrant urban atmosphere. 13 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. Located at the intersection of the Monon Greenway and Main Street is a mixed-use development called Monon & Main. The $20-million structure features Anthony’s Chophouse, a three-story, 12,000-square-foot restaurant and 3UP, a rooftop bar, a four-story office building, retail space along Main Street, a parking garage and seven townhomes. The City Center redevelopment project is home to the Center for the Performing Arts and several mixed-use buildings, including the Hotel Carmichael, Carmel City Center, the James Building, the Nash Building, the Mezz on Monon and approximately twelve more buildings scheduled to be constructed in the next few years. The City also continued major redevelopment in an area located along the Monon Greenway between City Center and the Arts District – an area known as Midtown. The first several phases of the Midtown redevelopment project, which includes mixed-use buildings, has attracted several corporate headquarters. This area is poised for more growth in 2023 and subsequent years as projects begin to take shape to the east and west of the Greenway. Another major mixed-use development, known as the Proscenium, is now open south of the City government center. The $60-million project includes apartments, for-sale condos, a 100,000 square foot office building, retail space and a one-level underground free parking garage. The Proscenium is home to 101 Beer Kitchen and Indiana’s first Wahlburgers, a nationally recognized restaurant created by the Wahlburg family, which includes actors that are known on the national and international stage. The City’s $30-million expansion of the Monon Greenway from a 12-foot path to the 140-foot Monon Boulevard, with expanded paths for pedestrians and bicyclists, along with new one-way streets on either side, includes the popular Midtown Plaza, a public park-like setting with green space, community games (such as outdoor ping pong and pool), a 16-foot video screen where movies and sporting events are broadcast and a stage for live music. In addition, Monon Boulevard includes additional artwork, community benches, a spray plaza, and other features to enhance the landscape for residents and visitors. The City has invested millions of dollars in infrastructure improvements in the past decade from major thoroughfares and road widening to the construction of more than 141 roundabouts across the City. The transition away from traffic signals and 4-way stops has resulted in Carmel having one of the lowest automobile accident fatality rates among cities its size in the U.S. Carmel’s current fatality rate is 2.25 (based on 100,000 population). The City also took ownership of the former Ind. 431 from the State of Indiana and transformed it into a nationally recognized and award-winning, free-flowing Keystone Parkway. With $90 million from the State for reconstruction, Keystone Parkway was transformed from a congested, dangerous five-mile stretch of roadway into a free-flowing parkway with no traffic signals and with intersections that are controlled by grade-separation and roundabouts. Upon seeing that project work well, the State of Indiana followed a similar model to upgrade U.S. 31 through Carmel and Westfield, removing traffic signals and using roundabouts to control grade-separated interchanges along 13 miles between I-465 and 14 Indiana State Road 38 north of the City. Additionally, the creation of new interchanges has helped spur additional economic development on Main Street. The City also transformed a key north-south corridor known as Range Line Road, which cuts through the middle of Carmel’s central corridor, replacing the former 4-lane road with traffic signals on a “road diet.” This process eliminated two lanes of traffic, added a bike lane, added a landscaped median, replaced traffic signals with roundabouts and added pedestrian and bike friendly raised crosswalks to promote walkability and safety in an area that has been transformed by the City’s redevelopment efforts. In 2022, this transformation was completed to the north of this section to the edge of the Arts & Design District. PENSION PLANS The City of Carmel has four pension plans for its employees. All full-time employees, with the exception of public safety officers, are members of the Public Employees’ 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 II.F. of 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 hired prior to October 3, 2016, who have completed twenty or more years of full-time service to the City. Such benefits are self-funded by the City and administered 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 II.G. of the notes to the financial statements. FINANCIAL INFORMATION City Budget & Budgetary Controls The City Council is required to adopt a final budget, subject to approval by the Indiana Department of Local Government Finance (“DLGF”), 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 directors are authorized to transfer limited budgeted amounts within departments between line items within any major category; however, any revisions that alter 15 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. Accounting System The City’s accounting records for general government operations are reported by the Controller’s Office on 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 a full accrual basis, with revenues recorded when earned and expenses when incurred. In maintaining the City’s accounting system, consideration is given to the adequacy of internal controls. Internal controls are designed to provide reasonable assurance regarding the safeguarding of assets and to ensure the reliability of financial records and maintaining accountability for assets. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived. The evaluation of costs and benefits requires continuing estimates and judgments by City management. We believe that under the Controller’s Office direction the City’s system of internal accounting controls continues to appropriately safeguard assets and provide reasonable assurance that financial transactions are properly recorded. Risk Management The City carries traditional insurance for automobile liability and physical damage, general liability, public officials’ liability, property and casualty, cyber liability, inland marine/boiler, and crime damage. The City insures Worker Compensation using a large per claim deductible program with stop loss and excess insurance in place. The Water Treatment Facility is insured under “special form” property coverage. CERTIFICATE OF ACHIEVEMENT The Government Finance Officers Association of the United States (GFOA) awarded the City a Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report for the fiscal year that ended December 31, 2021. 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 to determine its eligibility for another certificate. 16 17 The Government Finance Officers Association of the United States (GFOA) awarded the City a Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report (ACFR) for the fiscal year that ended December 31, 2021. 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 to determine its eligibility for another certificate. 18 2022 ORGANIZATIONAL CHART City of Carmel, Indiana Chief Deputy Clerk of City Business Financial Specialist Part-timeDeputy Clerk of Court Business Deputy Director EXECUTIVE Brookshire GC Manager Course Management Grounds Maintenance Food/ Beverages Operations Club House/ Pro Shop Operations Administrative Assistant Human Resources Director Employee Benefits Manager Employment/ Training Coordinator Office Administrator ADMINISTRATION Information Services/ Communications Director Office Administrator Communications Supervisor Systems Supervisor GIS Coordinator Network Administrator Communications Technician I GIS Technician I Network Applications/ Analyst Database Administrator Programmer REDEVELOPMENT Director Deputy Director Finance Manager Office Administrator COMMUNITY RELATIONS & ECONOMIC DEVELOPMENT Public Relations Media Relations Special Events Coordination Economic Development Transportation Development ENGINEERING City Engineer Asst. City Engineer Construction Manager Engineering Administrator Plan Review Coordinator Construction Inspector Storm Water Administrator Right of Way Inspector Public Works Coordinator FIRE Fire Chief Deputy Chief Battalion (Chief) -Division Head (Chief) -Accreditation Manager Executive Officer Captain Lieutenant Engineer Firefighter Quartermaster Mechanic Administrative Assistant Chaplain Part-time Members LAW Corporation Counsel Asst. Corporation Counsel Executive/ Legal Secretary Administrative Assistant I & II Deferral Program Coordinator POLICE Police Chief Asst. Chief Major Lieutenant Sergeant Patrol Officer 1st and 2nd Class, Probationary Crime Scene/ Evidence Technician Mechanic I Quartermaster/ Fleet Manager UTILITIES Director Operations Manager Plant Manager Manager of Water Quality Distribution/ Collections Manager Electrical/ Controls Engineer Senior Utilities Accountant Asst. Plant Manager Foreman Hazardous Waste Coordinator Customer Service Manager STREETS Street Commissioner Operations Manager Skilled Labor/ Foreman I Skilled Labor/ Foreman II Office Administrator GIS Technician I Administrative Assistant I Skilled Labor LEGISLATIVE Council Members JUDICIAL Clerk of Court Administrator Asst. Clerk of Court AdministratorDeputy Clerk I&II Bailiff ADMINISTRATIVE Accounts Payable Administrator Payroll Analyst Director City Clerk Chief Deputy Clerkof Court Business City Controller Financial Analyst Accounts Payable AdministratorDeputy Clerk of City Business Mayor Judge 19 Mayor City Clerk City Court Judge James Brainard Sue Wolfgang Brian Poindexter jbrainard@carmel.in.gov swolfgang@carmel.in.gov bpoindexter@carmel.in.gov Chaplain Laura Campbell North District lcampbell@carmel.in.gov President Kevin “Woody” Rider At- Large krider@carmel.in.gov Parliamentarian Sue Finkam Northeast District sfinkam@carmel.in.gov Bruce Kimball Central District bkimball@carmel.in.gov Tim Hannon At-Large thannon@carmel.in.gov Tony Green Southwest District agreen@carmel.in.gov Miles Nelson West District mnelson@carmel.in.gov Adam Aasen Southeast District aaasen@carmel.in.gov City of Carmel, Indiana List of Elected and Appointed Officials For the Fiscal Reporting Year Ended December 31, 2021 Elected Officials Vice-President Jeff Worrell At-Large jworrell@carmel.in.gov 20 City of Carmel, Indiana LIST OF ELECTED AND APPOINTED OFFICIALS For the Fiscal Reporting Year Ended December 31, 2022 (Continued) Appointed Officials Board of Public Works (Appointed by the Mayor) Mayor James Brainard Lori Watson Mary Ann Burke Carmel Audit Committee (Appointed Officials) Arnold Hanish, Chairman Josephine Biggers J. Andrew Pinegar Megan McVicker Jeff Worrell Carmel Redevelopment Authority (Appointed Officials) Robert Bush, President Jay Brill, Secretary/Treasurer Michael Corr Carmel Redevelopment Commission (Appointed Officials) William Hammer, President David Bowers, Vice President William Brooks, Secretary Adam Campagna Jeff Worrell Michael Kerschner 21 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 Photo courtesy City of Carmel. 22 Independent Auditor’s Report0F Audit Committee City of Carmel, Indiana Carmel, Indiana Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Carmel, Indiana (City), as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of December 31, 2022 and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of The City of Carmel Local Public Improvement Bond Bank, a blended component unit, which represents 1%, 53%, and .2%, respectively, of the assets, liabilities and net position of the total governmental activities of the City as of December 31, 2022. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the governmental activities for the City of Carmel Local Public Improvement Bond Bank, is based solely on the report of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those standards are further described in the “Auditor’s Responsibilities for the Audit of the Financial Statements” section of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter As discussed in Note I to the financial statements, in 2022, the City adopted GASB Statement No. 87, Leases. Our opinions are not modified with respect to this matter. 23 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for 12 months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: Exercise professional judgment and maintain professional skepticism throughout the audit. Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, and design and perform audit procedures responsive to those risks. Suchprocedures include examining, on a test basis, evidence regarding the amounts and disclosuresin the financial statements. Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the City’s internal control. Accordingly, no such opinion isexpressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significantaccounting estimates made by management, as well as evaluate the overall presentation of thefinancial statements. Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,that raise substantial doubt about the City’s ability to continue as a going concern for areasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 24 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, budgetary comparison, pension, and other postemployment benefit information be presented to supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual fund statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with GAAS. In our opinion, the combining and individual fund statements and schedules is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Information Management is responsible for the other information included in the annual comprehensive financial report. The other information comprises the introductory section and statistical section but does not include the basic financial statements and our auditor’s report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 19, 2023, 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. Indianapolis, Indiana June 19, 2023 25 Financial Highlights Overview of the Financial Statements City of Carmel, Indiana MANAGEMENT'S DISCUSSION AND ANALYSIS For the Fiscal Year Ended December 31, 2022 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, 2022. 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 36 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 $512,496,798 (net position). • The City's total net position increased $38,829,123 from the prior fiscal year. The main reason for this improvement was the purchase of 98 capital assets and an increase in construction in progress projects. Other 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 $257,516,837, an increase of $15,663,458 in comparison with the prior year. Much of the increase represents bond proceeds. Approximately $18,878,417 of this amount (7.3%) 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 $33,370,480, or approximately 33.2% of total General Fund expenditures. • The City's total outstanding long-term liabilities increased by $40,977,879 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 and sewer. The City's adoption of GASB Statement No. 87, Leases, had no impact on the opening fund balance or net position as of January 1, 2022. The 2021 balances within the Management's Discussion and Analysis were not restated for the adoption of GASB Statement No. 87, Leases. 26 The government-wide financial statements begin on page 36 of this report. The basic governmental fund financial statements begin on page 38 of this report. The basic proprietary fund financial statements begin on page 43 of this report. The fiduciary fund financial statements begin on page 49 of this report. Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding 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. Custodial funds report resources held by the City in a custodial capacity for individuals, private organizations, and other governments. of the data provided in the government-wide and fund financial statements. The notes to the financial statements begin on page 51 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, five 501(c)(4) corporations, 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. 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 seventy-four 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 Fund, 2021 Project Fund, and 2022 Project 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. 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 enterprise fund financial statements provide separate information for the water and sewer utilities, which are considered to be major funds of the City. 27 Government-wide Overall Financial Analysis City of Carmel's Net Position Current and other assets Capital and leased 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 512,496,798$ (32,920,624) (46,699,892) 46,309,663 518,721,235 34,566,956 (79,620,516) 393,652,201 3,397,581 22,302,605 552,011,103 Net investment in capital assets 18,905,024 6,098,406 40,211,257 149,036,091 158,358,902 369,685,144 Governmental Activities 292,130,884$ 1,008,609,843 1,300,740,727 The City adopts an annual appropriated budget for its General Fund, as well as several nonmajor funds. Budgetary comparison statements have been provided for these funds to demonstrate compliance with the budget. 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 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 $512,496,798 at the close of the fiscal year. 969,579,445 1,552,791,481 279,555,288 289,826,039 concerning the City's progress in funding its obligation to provide pension and other post-employment benefits (OPEB) to its employees. Required supplementary information can be found beginning on page 88 of this report. 22,208,946$ 2021 303,656,748$ 281,447,802$ 2022 20222022 305,837,641$ Business-type Activities 2021 2021 1,073,278,494 Total 13,706,757$ 918,066,429 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 109 of this report. 1,251,027,247 1,298,435,882 47,881,189 1,604,273,523 1,943,603 1,249,134,733 40,464,351 20,872,785 23,971,721 175,317,159 45,786,525 876,379,628 1,052,405,709 940,034,204 21,967,775 3,213,729 176,026,081 179,239,810 17,659,056 2,003,946 1,093,383,588 1,117,355,309 177,321,105 301,764,234 38,520,748 303,532,796 2,094,664 894,038,684 387,588,024$ 32,312,802 1,272,789 124,908,774$ 28,960,423 2,254,154 27,687,634 355,298,054$ 473,667,675$ 118,369,621$ (33,751,811) (34,722,917) (68,474,728) 28 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 7,009,627 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 appropriations, 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. The plan was closed to new entrants as of October 3, 2016. 66,644,788$ 9,704,788 8,841,169 10,829,524 Another contributing factor to the deficit is 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 strong tax base, yielding one of the lowest local tax rates in Indiana, despite the cost of debt. 8,185,267 22,074,413$ 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 $68,474,728. The City reported significant negative unrestricted net position of $33,751,811 in governmental activities. This deficit is due in part to unfunded pension and retiree healthcare liabilities of $66.6 million, as follows: The City's Net Pension Liability for the four State Pension Plans (City PERF, Parks PERF, Police 1977 Plan, and the Firefighters 1977 Plan) increased significantly from the prior year. The liability increased due to a large decrease in the money-weighted rate of return. The money-weighted rate of return equals investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested. The 2022 money-weighted rate of return was -6.6%, which is a decrease of 32% from the prior year. ($200)$0 $200 $400 $600 Millions City of Carmel Net Position December 31, 2022 Unrestricted Restricted Net investment in capital assets 29 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. Governmental Activities. During the current fiscal year, net position for governmental activities increased $32,289,970 from the prior fiscal year for an ending balance of $387,588,024. The increase of 9.09% resulted in part from the acquistion of 98 capital assets and an increase in construction in progress activity during the year. $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 $80,000,000 $90,000,000 General government Public safety Streets, infrastructure Economic development Culture and recreation Interest on long-term debt CITY OF CARMEL Program Revenues vs. Expenses For the Fiscal Year Ended December 31, 2022 Program Expenses Program Revenues Property taxes 28.59% Income tax 23.72% Tax incremental revenue 19.16% Charges for services 8.72% Operating grants and contributions 1.30% Capital grants and contributions 0.97% Unrestricted investment earnings 0.58%Other 16.95% City of Carmel Governmental Activities Revenue For the Fiscal Year Ended December 31, 2022 30 City of Carmel's Changes in Net Position REVENUES: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Income tax Other Total revenues EXPENSES: General government Public safety Streets, infrastructure Water distribution Sewer collection Economic development Culture and recreation Interest on long-term debt Other Total expenses Transfers NET POSITION - beginning NET POSITION - ending - 9,859,506 118,369,621$ 5,059,713 1,320,506 32,289,970 38,829,123 Unrestricted investment earnings Tax incremental revenue 44,052,895 The reduction in streets, infrastructure expenses mainly reflect the reduction in construction costs related to the 2016 Project. The increase in general government expenses can be attributed to an increase in construction costs related to the 2021 Project. - 247,390 236,719 2,234,815 54,550,714 57,887,325 - 65,741,734 1,337,884 63,905,027 8,116,109 3,338,803 2021 2021 49,763,089$ 2022 2021 Total 52,573,823$ 20,049,442$ 2,327,172 - - 18,709,961$ 2022 31,053,128$ 32,524,381$ Business-type Activities - 11,946,131 2022 21,799,363 48,809,731 - 22,193,459 9,192,941 21,799,363 - 30,969,464 189,256,977 202,255,488 5,505,060 22,793,124 1,320,506 - (1,320,506) 32,177,678 - 38,020,210 124,908,774$ 512,496,798$ Change in net position before transfers - - - 323,120,376 118,369,621 473,667,675 5,842,532 30,857,172 - - - 5,059,713 5,505,060 - 7,163,038 31,658,869 220,915,846 38,829,123 435,647,465 22,793,124 15,868,909 33,496,494 355,298,054$ 235,751,982 Increase (decrease) in net position 387,588,024$ 355,298,054 473,667,675$ 22,193,459 6,539,153 48,809,731 9,859,506 112,527,089 11,303,035 (1,320,506) - - 7,859,659 - - - - 63,905,027 57,887,325 85,040,775 38,976,077 233,224,952 63,854,679 157,199 38,821,907 63,854,679 - 26,662,617 56,351,024 - 1,585,274 (76,768) 44,334,410 Governmental Activities 2,997,905 2,997,905 2,327,172 - - 85,040,775 468,273 41,356,153 - 220,114,149 34,218,709 44,052,895 274,581,105 - 15,868,909 32,871,669 11,946,131 32,871,669 11,027,151 10,350,924 7,688,348 39,444,350 - 54,550,714 34,218,709 65,741,734 56,351,024 38,020,210 11,303,035 Fluctuations in grant revenues mainly reflect the unique, one-time grant programs related to the national health emergency. Fluctuations in unrestricted investment earnings is attributable to the fluctuations in the market conditions. Food and beverage tax 3,283,486 2,712,115 - - 3,283,486 2,712,115 44,334,410 9,192,941 393,918 258,936,056 26,585,849 31 Business-type Activities. For the City's business-type activities, overall net position increased 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, and $124,908,774. The total increase in net position for business-type activities (water and sewer) was $6,539,153 or 5.2% from the prior fiscal year, indicating a relatively stable and healthy net position. The City has improved cash flows by replacing aging meters, expanding the system as the community grows and new customers tap in, and a program of annual rate increases. Currently, the City utility rates are lower than the standard utility rates in the region. The City plans to keep comparatively low rates while implementing a gradual increase to be more consistent with the standard rates. As a result, the City is able to maintain positive cash flow and anticipate future increases in debt service requirements. At December 31, 2022, the City's governmental funds reported combined fund balances of $257,516,837, an increase of $15,663,458 in comparison with the prior year. Much of the increase is due to proceeds from bond issues. Approximately 7.3% of the combined fund balances, $18,878,417, 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 ($218,211,288), it is committed for particular purposes ($11,862,061), or it is assigned for particular purposes ($8,565,071). 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. $33,496,494 $41,356,153 $0 $5,000,000 $10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000 CITY OF CARMEL Business-Type Revenues vs. Expenses For the Fiscal Year Ended December 31, 2022 Expenses Rev Charges for services 79.12% Capital grants and contributions 19.74% Other 1.14%City of Carmel Business-Type Activities Income For the Fiscal Year Ended December 31, 2022 32 General Fund Budgetary Highlights The most significant differences between estimated revenues and actual revenues were as follows: Revenue source Property tax Income tax Licenses and permits Intergovernmental Charges for services Fines and forfeits Miscellaneous Total (2,683,093) 46,613,206$ Final - 52,730,393 266,478 3,922,384 13,939,050 119,503,353$ the original estimated revenues. (2,968,561)$ (214,200) 224,910 49,581,767$ Difference Unrestricted net position of the Water Utility at the end of the year was a deficit of $30,759,897; for the Sewer Utility, unrestricted net position was a deficit of $3,963,020. Water Utility net position, before capital contributions and transfers, decreased $630,097. Improvement is expected as the utilities continue to expand and achieve both economies of scale and greater utilization of recently installed mains, treatment facilities, and replacement of aging water meters. 45,735,219 6,995,174 (2,871,807) Investment earnings, subfund transactions, and other - 117,881,742$ Original budget compared to final budget. During the year, there was no need for any significant amendments to increase 4,145,603 The 2022 fund had a $62,742,643 increase in fund balance during the year, due to bond proceeds being issued, which put the overall fund balance at $62,742,643. Estimated Revenues The Redevelopment Commission Fund, a major fund, accounts for tax increment revenue, which is restricted for certain economic development projects. The fund had a $8,384,246 decrease in fund balance during the year, representing normal variation in the amount of debt service due each year, which put the overall fund balance at $32,027,079. Actual Revenues The fund balance of the City's General Fund increased by $4,489,457 during the year, indicating a budget variance within approximately 2% of revenues and expenditures, which is considered reasonable. 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 $18,878,417 while the total fund balance was $33,370,480. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents 18.8% of total general fund expenditures while total fund balance represents 33.2% of that amount. Final Proprietary Funds. The City's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The 2022 Project Fund, a major fund, accounts for the expenditure of proceeds of a 2022 Redevelopment Authority bond, the purpose of which was to finance or reimburse the cost of the acquisition, design, construction, renovation, improvement and/or equipping of the local and arterial road and street system. 344,422 (902,708) 1,621,611$ 1,462,510 3,922,384 The revenue excesses and shortfalls in the above revenue sources net to less than 1.5% and were not considered problematic in the aggregate. 14,841,758 The 2021 Project Fund, a major fund, accounts for the expenditure of proceeds of certain 2021 bond issuances, the purpose of which was to finance the Police headquarters expansion and related parking garage projects. The fund had a $20,362,998 decrease in fund balance during the year, due to construction costs incurred which put the overall fund balance at $20,024,225. 439,110 The Redevelopment Authority Fund, a major fund, had a $14,113,008 decrease in fund balance during the current fiscal year, due primarily to an increase in construction costs during the year. The ending balance was $62,293,597, all of which was restricted for debt service and capital projects. Final General Fund Budget Compared to Actual Results 610,900 2,871,807 33 The differences by department between estimated expenditures and actual expenditures were as follows: Department Controller Clerk Mayor's Office City Council Board of Public Works Administration Brookshire Golf Course Building Operations City Court Law Department Community Services Personnel/ Human Resources Information Systems City Property Maintenance Public Affairs/ Community Relations Fire Department Police Department Communication Center Parks Department Redevelopment Department Other Total Capital Assets and Debt Administration Capital Assets Land Construction in progress Buildings Machinery, equipment, and vehicles Infrastructure Water distribution system Sewer system Total Additional information on the City's capital assets can be found in Note II.C. on pages 59–60 of this report. 1,598,832 - - (1,129,576) 26,978,151 289,826,039$ 960,584$ 1,008,276,993$ - 1,142,373 700,142 The under-budget conditions mostly reflect the City’s policy of fully funding full staffing, with no provision for vacancies, and fringe benefits at the highest potential cost. Actual expenditures tend to be less. 1,318,601 659,823 (453,671) 1,202,757$ (770,566) 1,739,614 (182,537) 3,525,268 (323,335) 3,779,209 16,797,355 16,806,408 1,922,151 489,393,650 (442,231) Governmental Activities Difference 437,367 (297,610) (1,529,039) (242,173)$ 4,576,732 (150,898) Final Estimated Expenditures Final Actual Expenditures 588,265 815,150 - (908,248) 6,105,771 1,008,497 (9,053) (14,327,892)$ 5,081,632 (1,338,711) 26,204,508 4,660,703 4,113,172 824,060 (1,296,363) - 113,382,172$ 834,158 127,710,064$ (255,304) 31,409,870 31,509,960 1,318,601 5,059,563 31,254,656 3,742,921 5,957,066 (946,391) (10,098) 1,380,862 (5,205,362) 4,549,775 2,289,110 710,887 4,396,876 2,052,503 5,526,452 (155,327) 3,848,603 Business-type Activities 2022, amounts to $1,298,103,032 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, and the water treatment plant. The total increase in capital assets for the current fiscal year was 3.92%. Capital assets. The City's investment in capital assets for its governmental and business-type activities as of December 31, 227,924,625 26,978,151 - 58,924,152 205,056,414$ 1,249,134,733$ 67,465,073 1,298,103,031$ 279,555,288$ 61,882,297 196,345,440$ - - 227,924,625 67,465,073 431,852,064 200,899,962$ 164,233,523 26,290,175 61,882,297 - 156,068,458 164,233,523 - 4,554,522$ 105,949,702 489,393,650 210,466,509$ - 2022 In 2022, the City continued its program of improving streets and streetscapes, using proceeds of bonds issued in 2016 and 2017. The City issued more bonds in 2022 to continue improving streets and streetscapes throughout the city. 207,908,254 Total 2021202220212021 - 2022 5,410,095$ 107,183,512 969,579,445$ 169,925,321 48,884,946 207,908,254 26,290,175 431,852,064 169,925,321 47,025,550 - - 34 Outstanding Long-Term Liabilities Unamortized premium Compensated absences OPEB Net pension liability Financed purchase obligations Total Additional information on the City's long-term debt can be found in Note II.D. on pages 60–68 of this report. Economic Factors and Next Year's Budgets and Rates Request for Information 2021 At the end of the current fiscal year, the City had total bonded debt outstanding of $950,280,166. Of this amount, $611,596,088 is debt backed by an unlimited ad valorem property tax levy, $146,590,000 is debt backed by income tax, $26,785,000 is debt backed by tax increment, and $165,309,078 is debt backed by utility revenues. The remainder of the City's long-term obligations comprises post- employment benefit debt, compensated absences, contract purchases, and financed purchase obligations. Governmental Activities Business-type Activities 2021 175,776,906$ 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”. • The unemployment rate for the City was 0.9% at the close of the fiscal year, which is significantly below the national rate of 3.9% and also below the rate of nearby communities. 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 Controller, One Civic Square, Carmel, Indiana 46032. • The City enjoys favorable relationships with employee unions and no history of significant contract disputes. Contract purchases 7,335,630 8,053,173 - - 7,335,630 8,053,173 The following economic factors currently affect the City and were considered in developing the 2023 fiscal year budget. Bonds 54,121,774 2022 23,524,710 10,266,286 1,096,572,650$ 11,494,812 2,062,886 386,052 The City's total debt outstanding increased by $41,631,761 (3.95%) during the current fiscal year. The City's utilities incurred $2,531,091 of bonded debt. 1,228,526 23,395,059 21,754,116 920,795,744$ 3,611,107 1,640,943 878,442,514$ 12,212,233 176,498,375$ 1,054,940,889$ 9,794,889 22,074,413 2,417,344 48,439,599 25,436,805 3,869,227 3,362,392 165,309,078$ 50,164,154 3,189,063 2,729,316 44,570,372 927,819,022$ 54,507,826 2,535,181 472,295 359,118 459,747 27,135,817 • Recent trends have been favorable with regard to increases in taxable assessed value and increases in taxable income. The City's outstanding debt is payable primarily from pledges of property tax levies. Several of the City's outstanding obligations are payable from non-property tax resources, even though they are subject ultimately to a property tax levy pledge. The latter of these obligations are not subject to the 2% statutory debt limit, nor are obligations associated with lease-back arrangements. Long-term Debt. On November 29, 2022, the City issued, through the Redevelopment Authority Fund, $62,450,000 of its Ad Valorem Property Tax Lease Rental Bonds, Series 2022. The bonds were issued to finance the cost of the acquisition, design, construction, renovation, improvement and/or equipping of the local arterial road and street system. The City has pledged an ad valorem property tax levied on all taxable property within the City Redevelopment District to repay the bonds. 758,659,569$ 949,795,166$ 49,805,036 169,159,453$ 784,486,088$ 2022 2021 2022 Total 35 Governmental Activities Business-Type Activities Total Cash and investments 257,984,146$ 5,482,806$ 263,466,952$ Receivables (net of allowances for uncollectibles): Lease and other 9,236,152 706,784 9,942,936 Taxes 23,749,099 - 23,749,099 Other - 1,458,677 1,458,677 Internal balances 351,310 (351,310) - Inventories - 864,950 864,950 Prepaid expenses 810,177 25,000 835,177 Cash, restricted for debt service - 5,519,850 5,519,850 Capital and leased assets: 263,980,566 52,435,645 316,416,211 Other capital assets, net of depreciation 744,296,427 237,390,394 981,686,821 Right-of-use (leased) asset 332,850 - 332,850 Total assets 1,300,740,727 303,532,796 1,604,273,523 DEFERRED OUTFLOWS OF RESOURCES: Bond refunding 15,782,537 - 15,782,537 Pensions 27,777,556 1,755,532 29,533,088 Other post-employment benefits 2,226,432 339,132 2,565,564 Total deferred outflows of resources 45,786,525 2,094,664 47,881,189 Lease Liability 332,850 - 332,850 Accounts payable 3,046,225 385,454 3,431,679 Accrued interest payable 10,532,275 689,316 11,221,591 Claims payable 1,480,423 - 1,480,423 Other current payables - 272,724 272,724 Accrued payroll and withholdings payable 1,928,721 154,000 2,082,721 Compensated absences 2,729,316 459,747 3,189,063 Unearned revenue 1,917,965 - 1,917,965 Customer deposits - 42,705 42,705 Noncurrent liabilities: Due within one year: Bonds and contract purchases payable 36,499,417 24,692,678 61,192,095 Financed purchase obligation payable 2,449,014 534,449 2,983,463 OPEB liability 824,552 125,597 950,149 Due in more than one year: Bonds and contract purchases payable 805,127,337 140,975,518 946,102,855 Financed purchase obligation payable 7,345,875 1,882,895 9,228,770 Net pension liability 44,570,373 3,869,227 48,439,600 OPEB liability 21,249,861 3,236,795 24,486,656 Total liabilities 940,034,204 177,321,105 1,117,355,309 DEFERRED INFLOWS OF RESOURCES:- Leases 8,438,899 - 8,438,899 2008 bond call rights waiver - 1,962,215 1,962,215 Pensions 2,291,719 190,234 2,481,953 Other post-employment benefits 8,174,406 1,245,132 9,419,538 Total deferred inflows of resources 18,905,024 3,397,581 22,302,605 Net investment in capital assets 393,652,201 158,358,902 552,011,103 Restricted: General government 669,071 - 669,071 Public safety 2,250,165 - 2,250,165 Streets and other infrastructure 7,523,167 1,272,789 8,795,956 Drainage 6,707,179 - 6,707,179 Economic development 966,848 - 966,848 Culture and recreation 9,571,204 - 9,571,204 Unrestricted (33,751,811) (34,722,917) (68,474,728) Total net position 387,588,024$ 124,908,774$ 512,496,798$ The notes to the financial statements are an integral part of this statement. LIABILITIES: NET POSITION: City of Carmel, Indiana STATEMENT OF NET POSITION December 31, 2022 ASSETS: Capital assets not being depreciated: land, improvements, and construction in progress 36 Expenses Governmental Activities Business-Type Activities Total FUNCTIONS/PROGRAMS: Governmental activities: General government 63,854,679$ 166,786$ 1,773,107$ -$(61,914,786)$ -$(61,914,786)$ Public safety 85,040,775 2,213,582 1,224,798 (81,602,395) - (81,602,395) Streets and other infrastructure 9,192,941 4,287,774 - 2,234,815 (2,670,352) - (2,670,352) Economic development 22,793,124 615,833 -- (22,177,291) - (22,177,291) Culture and recreation 15,868,909 12,765,467 -- (3,103,442) - (3,103,442) Unallocated interest expense 5,505,060 - - - (5,505,060) - (5,505,060) Total governmental activities 202,255,488 20,049,442 2,997,905 2,234,815 (176,973,326) - (176,973,326) Business-type activities: Water 22,193,459 21,083,425 - 6,022,094 - 4,912,060 4,912,060 Sewer 11,303,035 11,440,956 - 2,094,015 - 2,231,936 2,231,936 Total business-type activities 33,496,494 32,524,381 - 8,116,109 - 7,143,996 7,143,996 TOTAL PRIMARY GOVERNMENT 235,751,982$ 52,573,823$ 2,997,905$ 10,350,924$ (176,973,326) 7,143,996 (169,829,330) GENERAL REVENUES AND TRANSFERS: General Revenues: Property tax 65,741,734 - 65,741,734 Income tax 54,550,714 - 54,550,714 Food and beverage tax 3,283,486 - 3,283,486 Tax incremental revenue 44,052,895 - 44,052,895 Unrestricted investment earnings 1,337,884 247,390 1,585,274 American Rescue Plan - lost revenue replacement 2,527,991 - 2,527,991 Other 36,448,086 468,273 36,916,359 Transfers 1,320,506 (1,320,506) - Total general revenues and transfers 209,263,296 (604,843) 208,658,453 CHANGE IN NET POSITION 32,289,970 6,539,153 38,829,123 NET POSITION: beginning 355,298,054 118,369,621 473,667,675 NET POSITION: ending 387,588,024$ 124,908,774$ 512,496,798$ City of Carmel, Indiana STATEMENT OF ACTIVITIES For the Fiscal Year Ended December 31, 2022 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 37 City of Carmel, Indiana BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2022 General Fund Redevelopment Commission Fund Redevelopment Authority Fund 2021 Project Fund 2022 Project Fund Total Nonmajor Funds Total ASSETS: Cash and investments 28,825,987$ 32,259,547$ 62,293,597$ 20,202,926$ 62,742,643$ 51,659,446$ 257,984,146$ Receivables: Lease and other 644,011 - - - - 8,592,141 9,236,152 Taxes: Property 1,642,372 - - - - 671,519 2,313,891 Income 21,435,208 - - - - - 21,435,208 Due from other governmental funds - - - - - 69,390 69,390 Due from related utility - - - - - 351,310 351,310 TOTAL ASSETS 52,547,578 32,259,547 62,293,597 20,202,926 62,742,643 61,343,806 291,390,097 LIABILITIES: Accounts payable 1,474,879 232,468 - 178,701 - 1,160,177 3,046,225 Claims payable - - - -- 1,480,423 1,480,423 Due to other funds - - - -- 69,390 69,390 Unearned revenue - - - -- 1,917,965 1,917,965 1,603,164 - - - - 325,557 1,928,721 Total liabilities 3,078,043 232,468 - 178,701 - 4,953,512 8,442,724 DEFERRED INFLOWS OF RESOURCES: Leases - - - - - 8,438,899 8,438,899 Unavailable revenue 16,099,055 - - - - 892,582 16,991,637 Total deferred inflow of resources 16,099,055 - - - - 9,331,481 25,430,536 FUND BALANCES: Restricted: General government - - - - - 669,071 669,071 Public safety - - - - - 2,250,165 2,250,165 Highways and streets - - 49,447,989 20,024,225 - 20,802,229 90,274,443 Drainage - - - - 6,707,179 6,707,179 Economic development - 32,027,079 10,613,872 - 62,742,643 966,848 106,350,442 Culture and recreation - - 2,231,736 - - 9,728,252 11,959,988 Committed: General government 5,926,992 - - - - 1,164,581 7,091,573 Public safety - - - - - 3,254,605 3,254,605 Highways and streets - - - - - 456,745 456,745 Economic development - - - - - 158,789 158,789 Culture and recreation 900,349 900,349 Assigned: General government 4,321,416 - - - - - 4,321,416 Public safety 3,671,338 - - - - - 3,671,338 Economic development 2,050 - - - - - 2,050 Culture and recreation 570,267 - - - - - 570,267 Unassigned 18,878,417 - - - - - 18,878,417 Total fund balances 33,370,480 32,027,079 62,293,597 20,024,225 62,742,643 47,058,813 257,516,837 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 52,547,578$ 32,259,547$ 62,293,597$ 20,202,926$ 62,742,643$ 61,343,806$ 291,390,097$ The notes to the financial statements are an integral part of this statement. Accrued payroll withholdings payable 38 Fund Balance - governmental funds 257,516,837$ 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.810,177 Capital and leased assets used in governmental activities are not financial resources and, therefore, are not reported in the funds: Right-of-use (leased) asset 332,850$ Land and construction in progress 263,980,566 Machinery, equipment, and vehicles 1,007,145,234 Accumulated depreciation (262,848,807) 1,008,609,843 Certain receivables are not expected to be collected within the time needed to liquidate expenditures of the current year and therefore are not considered available in the funds: Property tax 2,313,891$ Income tax 13,812,672 Lease Security Deposits 93,361 Ambulance fees 127,702 Supplemental ambulance fees 644,011 16,991,637 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 (44,570,373)$ Other post-employment benefit liability (22,074,413) (66,644,786) 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 15,782,537$ Pension-related inflows (2,291,719) OPEB-related inflows (8,174,406) Pension-related outflows 27,777,556 OPEB-related outflows 2,226,432 35,320,400 Other noncurrent liabilities are not due and payable in the current period and, therefore, are not reported in the funds: Lease Liability (332,850)$ Compensated absences (2,729,316) Accrued interest payable (10,532,275) Unamortized value of financed purchase obligations (9,794,889) Unamortized premiums on bonds outstanding (49,805,036) Unamortized principal on bonds outstanding (791,821,718) (865,016,084) Net position of governmental activities 387,588,024$ 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 GOVERNMENT-WIDE STATEMENT OF NET POSITION December 31, 2022 39 City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 General Fund Commission Fund Redevelopment Authority Fund 2021 Project Fund 2022 Project Fund Total Nonmajor Funds Total REVENUES: Property tax 46,613,206$ -$ -$ -$ -$ 19,298,203$ 65,911,409$ Income tax 52,730,393 - - - - - 52,730,393 Food and beverage tax 3,283,486 - - - - - 3,283,486 Other local tax 4,024,823 38,189,599 - - - 1,838,473 44,052,895 Charges for services 1,462,510 151,807 - - - 18,435,125 20,049,442 Investment income 228,896 188,966 272,834 123,362 59 523,767 1,337,884 Licenses and permits 2,920,276 - - - - 116,887 3,037,163 Fines and forfeits 224,910 - - - - - 224,910 Intergovernmental: Grants 1,209,621 - - - - 6,551,090 7,760,711 State shared revenue 943,488 - - - - 6,656,733 7,600,221 Other 171,959 - - - - - 171,959 Contributions - - - - - 456,725 456,725 Other 3,603,111 4,368,134 4,526,543 - 97,059 10,944,689 23,539,536 Total revenues 117,416,679 42,898,506 4,799,377 123,362 97,118 64,821,692 230,156,734 EXPENDITURES: Current: General government 19,798,573 - - - - 2,563,491 22,362,064 Public safety 57,388,459 - - - - 2,684,212 60,072,671 Streets and other infrastructure 1,570,897 - - - 213,650 23,343,836 25,128,383 Economic development 821,682 1,902,691 - - - 398,467 3,122,840 Culture and recreation 7,030,654 - - - - 9,713,255 16,743,909 Debt service: Principal 4,078,000 1,857,543 21,874,702 - - 6,975,000 34,785,245 Interest 6,255,916 831,869 13,177,330 1,010,315 - 7,413,854 28,689,284 Bond issuance costs - - - 15,582 124,900 - 140,482 Capital outlay: General government 70,273 - 32,727,353 - - - 32,797,626 Public safety 3,289,211 - - 20,470,778 - - 23,759,989 Streets and other infrastructure - - - - - 15,150,340 15,150,340 Economic development 2,261 17,370,277 - - - 1,000 17,373,538 Culture and recreation 349,371 - - - - 661,457 1,010,828 Total expenditures 100,655,297 21,962,380 67,779,385 21,496,675 338,550 68,904,912 281,137,199 Continued on next page.40 General Fund Redevelopment Commission Fund Redevelopment Authority Fund 2021 Project Fund 2022 Project Fund Total Nonmajor Funds Total EXCESS (DEFICIENCY) OF REVENUES OVER (UNDER) EXPENDITURES 16,761,382 20,936,126 (62,980,008) (21,373,313) (241,432) (4,083,220) (50,980,465) Bond issuance - principal - - - - 62,450,000 - 62,450,000 Bond issuance - premium - - - - 534,075 - 534,075 Debt issuance - financed purchase obligations 1,969,822 - - - - 369,520 2,339,342 Transfers in, governmental funds 766,168 - 48,867,000 1,010,315 - 9,928,481 60,571,964 Transfer in (out) from (to) enterprise funds 1,320,506 - - - - - 1,320,506 Transfers (out), governmental funds (16,328,421) (29,320,372) - - - (14,923,171) (60,571,964) Total other financing sources and uses (12,271,925) (29,320,372) 48,867,000 1,010,315 62,984,075 (4,625,170) 66,643,923 NET CHANGES IN FUND BALANCES 4,489,457 (8,384,246) (14,113,008) (20,362,998) 62,742,643 (8,708,390) 15,663,458 FUND BALANCES: beginning 28,881,023 40,411,325 76,406,605 40,387,223 - 55,767,203 241,853,379 FUND BALANCES: ending 33,370,480$ 32,027,079$ 62,293,597$ 20,024,225$ 62,742,643$ 47,058,813$ 257,516,837$ The notes to the financial statements are an integral part of this statement. OTHER FINANCING SOURCES AND (USES): City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) 41 15,663,458$ Capital outlays 64,312,698 Disposal of assets 1,144,317 Depreciation expense (26,759,467) 38,697,548 Decrease (increase) in bonds payable for private placement bonds 5,080,000 Decrease (increase) in bonds payable for other bonds secured by revenues (33,462,298) Decrease (increase) in accreted interest 2,555,779 Decrease (increase) in bonds payable for contract purchase obligations 717,543 Amortization of certain bond-related prepaid expense and deferred inflows and outflows (1,920,237) Amortization of premium on bonds outstanding 4,850,813 Bond issuance premium (534,075) Financed purchase obligation proceeds (2,339,342) Principal payments on financed purchase obligations 2,810,739 Compensated absences (666,430) (22,907,508) Property tax (169,675) Income tax 1,820,321 Lease security deposits 93,361 Ambulance fees 54,857 Ambulance fee supplemental 59,733 1,858,597 1925 Police Officers' plan 660 1937 Firefighters' plan (728,420) 1977 Police Officers' plan 137,797 1977 Firefighters' plan 164,811 Civilian public employee retirement plan 787,955 Other post-employment benefits - retiree health insurance 135,797 498,600 (1,520,725) Change in net position of governmental activities (Statement of Activities)32,289,970$ Net change in fund balances - total governmental funds, Statement of Revenues, Expenditures, and Changes in Fund Balances 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: 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 a depreciation expense. The following is the amount by which capital outlay expenditures exceeded depreciation expense in the current period: The issuance of long-term debt (e.g., bonds, leases, financed purchase obligations) 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: Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Expenses in the Statement of Activities for actuarially-determined pension and other post-employment benefits are not recognized as expenditures 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, net decrease in accrual. 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, 2022 42 Water Utility Sewer Utility Total Enterprise ASSETS: Current assets: Cash 1,855,869$ 3,626,937$ 5,482,806$ Accounts receivable (net of allowance)343,915 362,869 706,784 Other receivables 1,023,044 435,633 1,458,677 Due from associated utility - 806,456 806,456 Inventories 444,505 420,445 864,950 Prepaid items 15,625 9,375 25,000 Total current assets 3,682,958 5,661,715 9,344,673 Noncurrent assets: Restricted cash, debt service 1,669,886 3,849,964 5,519,850 Due from associated utility 661,555 - 661,555 Capital assets: 31,777,555 20,658,090 52,435,645 Utility plant in service, net of depreciation 169,925,321 67,465,073 237,390,394 Total noncurrent assets 204,034,317 91,973,127 296,007,444 Total assets 207,717,275 97,634,842 305,352,117 DEFERRED OUTFLOW OF RESOURCES: Pension-related 986,030 769,502 1,755,532 OPEB-related 191,420 147,712 339,132 Total deferred outflow of resources 1,177,450 917,214 2,094,664 Continued on next page. City of Carmel, Indiana STATEMENT OF NET POSITION PROPRIETARY FUNDS Business-Type Activities - Enterprise Funds Land, improvements to land and construction in progress December 31, 2022 43 Water Utility Sewer Utility Total Enterprise LIABILITIES: Current liabilities: Accounts payable 241,485$ 143,969$ 385,454$ Accrued wages payable 87,225 66,775 154,000 Compensated absences 261,892 197,855 459,747 Due to associated governmental funds 351,310 - 351,310 Due to associated utility 806,456 - 806,456 Hydrant deposits 42,705 - 42,705 Revenue bonds payable, current portion 23,099,000 1,593,678 24,692,678 Financed purchase obligation payable, current portion 344,786 189,663 534,449 Accrued interest payable 575,468 113,848 689,316 OPEB liability 70,892 54,705 125,597 Other 272,724 - 272,724 Total current liabilities 26,153,943 2,360,493 28,514,436 Noncurrent liabilities: Bonds payable 111,805,422 29,170,096 140,975,518 Financed purchase obligation payable 1,026,813 856,082 1,882,895 Due to associated utility - 661,555 661,555 Net pension liability 2,173,229 1,695,998 3,869,227 OPEB liability 1,826,982 1,409,813 3,236,795 Total noncurrent liabilities 116,832,446 33,793,544 150,625,990 Total liabilities 142,986,389 36,154,037 179,140,426 Pension-related 106,849 83,385 190,234 OPEB-related 702,804 542,328 1,245,132 2008 bond call rights waiver 1,962,215 - 1,962,215 Total deferred inflow of resources 2,771,868 625,713 3,397,581 NET POSITION: Net investment in capital assets 93,886,796 64,472,106 158,358,902 Restricted for infrastructure 9,569 1,263,220 1,272,789 Unrestricted (30,759,897) (3,963,020) (34,722,917) Total net position 63,136,468$ 61,772,306$ 124,908,774$ The notes to the financial statements are an integral part of this statement. PROPRIETARY FUNDS December 31, 2022 City of Carmel, Indiana STATEMENT OF NET POSITION Business-Type Activities - Enterprise Funds DEFERRED INFLOW OF RESOURCES (Continued) 44 Water Utility Sewer Utility Total Enterprise OPERATING REVENUES: Residential sales 15,807,773$ 5,907,864$ 21,715,637$ Commercial and industrial sales 4,557,809 5,185,967 9,743,776 Other operating revenue 717,843 347,125 1,064,968 Total operating revenues 21,083,425 11,440,956 32,524,381 OPERATING EXPENSES: Source of supply - operation and maintenance 128,131 - 128,131 Water treatment - operation and maintenance 5,409,702 - 5,409,702 Transmission and distribution 4,318,176 - 4,318,176 Collection system - operation and maintenance - 2,051,401 2,051,401 Treatment and disposal - operation and maintenance - 3,444,051 3,444,051 Customer accounts 862,723 700,379 1,563,102 Administration and general 900,399 1,380,186 2,280,585 Payroll tax 325,133 256,039 581,172 Utility receipts tax 118,200 - 118,200 Depreciation 4,436,676 2,494,111 6,930,787 Pension expense (credit)(180,225) (113,548) (293,773) OPEB (credit)(57,635) 3,668 (53,967) Total operating expenses 16,261,280 10,216,287 26,477,567 OPERATING INCOME 4,822,145 1,224,669 6,046,814 NON OPERATING REVENUES (EXPENSES): Interest and investment revenue 97,917 149,473 247,390 Miscellaneous revenue 298,484 87,608 386,092 Amortization of call rights waiver 524,576 - 524,576 Amortization of debt premium/(discount)26,934 - 26,934 Interest expense (6,483,689) (1,086,748) (7,570,437) Gain (loss) from sale of capital assets 83,536 (1,355) 82,181 Total nonoperating revenue (expenses)(5,452,242) (851,022) (6,303,264) Continued on next page. PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2022 City of Carmel, Indiana STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Business-Type Activities - Enterprise Funds 45 Water Utility Sewer Utility Total Enterprise (630,097) 373,647 (256,450) CAPITAL CONTRIBUTIONS AND TRANSFERS: Capital contributions 6,022,094 2,094,015 8,116,109 Transfers to associated city (839,763) (480,743) (1,320,506) Total capital contributions and transfers 5,182,331 1,613,272 6,795,603 CHANGE IN NET POSITION 4,552,234 1,986,919 6,539,153 NET POSITION: beginning 58,584,234 59,785,387 118,369,621 TOTAL NET POSITION: ending 63,136,468$ 61,772,306$ 124,908,774$ The notes to the financial statements are an integral part of this statement. City of Carmel, Indiana STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (Continued) PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2022 CHANGE IN NET POSITION BEFORE CONTRIBUTIONS AND TRANSFERS Business-Type Activities - Enterprise Funds 46 Water Utility Sewer Utility Total Enterprise CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and users 20,676,162$ 11,193,677$ 31,869,839$ Payments for goods and services (6,384,086) (3,013,929) (9,398,015) Payments to employees (6,671,114) (5,074,763) (11,745,877) Other receipts 705,748 209,486 915,234 8,326,710 3,314,471 11,641,181 Proceeds from sale of bonds 2,531,091 - 2,531,091 Capital contributions 3,929,302 1,575,307 5,504,609 Acquisition and construction of capital assets (8,984,740) (4,929,118) (13,913,858) Payment of capital debt, including refunded debt (4,822,000) (1,559,466) (6,381,466) Interest paid on debt (3,544,203) (703,466) (4,247,669) Proceeds from sale of capital assets 83,536 - 83,536 Bond-related professional fees (2,531,091) (31,385) (2,562,476) Net cash provided (used) by capital and related financing activities (13,338,105) (5,648,128) (18,986,233) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 97,917 149,473 247,390 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers from (to) governmental funds (839,763) (480,743) (1,320,506) (5,753,241) (2,664,927) (8,418,168) 9,278,996 10,141,828 19,420,824 CASH AND CASH EQUIVALENTS: ending 3,525,755$ 7,476,901$ 11,002,656$ Continued on next page. PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2022 City of Carmel, Indiana STATEMENT OF CASH FLOWS Business-Type Activities - Enterprise Funds Net cash provided by operating activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS: beginning 47 Water Utility Sewer Utility Total Enterprise RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 4,822,145$ 1,224,669$ 6,046,814$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 4,436,676 2,494,111 6,930,787 Nonoperating income (expense)156,676 119,002 275,678 (Increase) decrease in assets: Accounts receivable (32,538) (44,553) (77,091) Pension-related deferred outflows of resources (85,858) (83,551) (169,409) OPEB-related deferred outflows of resources 12,604 5,744 18,348 Other 11,573 175,935 187,508 Interfund receivables 31,385 (31,385) - Inventories 22,119 6,603 28,722 Increase (decrease) in liabilities: Accounts payable (914,090) (364,610) (1,278,700) Wages payable (998) (149) (1,147) Compensated absence payable (14,473) 1,925 (12,548) Net pension liability 1,241,945 986,339 2,228,284 OPEB liability (163,087) (85,628) (248,715) Pension-related deferred inflows of resources (1,336,312) (1,016,336) (2,352,648) OPEB-related deferred inflows of resources 92,848 83,552 176,400 Other current liabilities 46,095 (157,197) (111,102) Total adjustments 3,504,565 2,089,802 5,594,367 8,326,710$ 3,314,471$ 11,641,181$ NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES: Initiation of financed purchase obligations 658,124 996,714 1,654,838 Contributions of capital assets and aid in construction 2,092,792 1,114,063 3,206,855 Amortization of call rights waiver 524,576 - 524,576 Amortization of bond premium 26,934 - 26,934 Accreted interest 2,531,091 - 2,531,091 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, 2022 (Continued) NET CASH PROVIDED BY OPERATING ACTIVITIES STATEMENT OF CASH FLOWS PROPRIETARY FUNDS City of Carmel, Indiana 48 Pension Trust Funds Custodial Funds ASSETS: Cash and cash equivalents 143,003$ 83,238$ Receivable from State of Indiana 102,474 - Total assets 245,477 83,238 LIABILITIES: Payroll withholdings 102,474 - Total liabilities 102,474 - NET POSITION: Restricted for: Pensions 143,003 - Individuals, organization and other governments - 83,238 Total net position 143,003$ 83,238$ The notes to the financial statements are an integral part of this statement. City of Carmel, Indiana STATEMENT OF FIDUCIARY NET POSITION December 31, 2022 FIDUCIARY FUNDS 49 Pension Trust Funds Custodial Funds ADDITIONS: Employer contributions 1,209,621$ -$ Investment income 4,708 - Court costs and fees - 902,873 Miscellaneous revenue 4,111 - Total additions 1,218,440 902,873 DEDUCTIONS: Benefits to plan members and beneficiaries 1,221,579 - Administrative expenses 4,113 - Distributions - 897,320 Total deductions 1,225,692 897,320 NET INCREASE (DECREASE) IN NET POSITION (7,252) 5,553 NET POSITION: beginning 150,255 77,685 NET POSITION: ending 143,003$ 83,238$ The notes to the financial statements are an integral part of this statement. For the Fiscal Year Ended December 31, 2022 FIDUCIARY FUNDS City of Carmel, Indiana STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 50 I. Summary of Significant Accounting Policies A. Accounting Principles B. Reporting Entity C. Basis of Presentation – Government-Wide Statements The City of Carmel Local Public Improvement Bond Bank (The Carmel Bond Bank) is an instrumentality of the City, organized under Indiana Code Chapter 5-1.4-2 as a body corporate and politic, separate from the City. It serves as a facility by which certain local governmental agencies may issue debt. Its board is appointed by City officials, it serves the City exclusively, 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. The Carmel Redevelopment Authority, CMBC, CMCDC, CMFBC, DCCDC, and 4CDC do not issue separate 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. City of Carmel, Indiana NOTES TO BASIC FINANCIAL STATEMENTS For the Fiscal Year Ended December 31, 2022 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 accounting policies of the City of Carmel, Indiana (City) applied to the accompanying financial statements for the year ended December 31, 2022, 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 appointed controller as fiscal officer, and a nine-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 seven blended component units. The Carmel Redevelopment Authority is organized under Indiana Code Chapter 36-7-14.5 as a body corporate and politic, separate from the City, 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. The Carmel City Center Community Development Corporation (4CDC), Carmel Midtown Community Development Corporation (CMCDC), and Downtown City Center Development Corporation (DCCDC) are legally separate Indiana not-for-profit corporations that are organized as community development corporations, pursuant to Indiana Code 4-4-28-2. Their primary function is to facilitate borrowing for certain City capital projects. Accordingly, they impose certain financial burdens and provide certain benefits to the City. City officials appoint their boards. They exist exclusively for the benefit of the City. Carmel Midtown Building Corporation (CMBC) is a legally separate Indiana not-for-profit corporation that facilitates borrowing for certain City capital projects. Accordingly, it imposes certain financial burdens and provides certain benefits to the City. City officials appoint its board. It exists exclusively for the benefit of the City. Carmel Municipal Facilities Building Corporation (CMFBC) is a legally separate Indiana not-for-profit corporation that facilitates borrowing for certain City public safety-related capital projects. Accordingly, it imposes certain financial burdens and provides certain benefits to the City. City officials appoint its board. It exists exclusively for the benefit of the City. 51 D. Basis of Presentation – Fund Financial Statements The government also reports certain other funds: E. Measurement Focus and Basis of Accounting 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 2021 Project Fund is used to account for the expenditure of proceeds of certain 2021 bond issuances, the purpose of which were to finance the Police headquarters expansion and related parking garage projects. 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. 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 government also reports nonmajor funds, which are of three 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; and debt service funds account for and report financial resources that are restricted, committed, or assigned to expenditure for principal and interest. 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 2022 Project Fund is used to account for the expenditure of proceeds of certain 2022 bond issuances, the purpose of which were to finance the cost of the acquisition, design, construction, renovation, improvement and/or equipping of the local and arterial road and street system. The Water Utility and Sewer 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 and sanitary sewer systems for residents and certain non-residents. 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 Authority 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. In addition, the Redevelopment Authority Fund is used to account for the costs of certain construction projects. Pension Trust funds account for the activities of certain pension plans administered by the City. Custodial funds account for municipal court escrows. The government reports the following major proprietary funds: 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. The government reports the following major governmental funds: 52 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 2. Investments 3. Inventories and Prepaid Items 4. Capital Assets The capitalization threshold below is determined by the asset class. a) Land is capitalized regardless of the value or cost; The costs of normal maintenance and repairs that do not add to the value of the capital assets 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. The City's cash and cash equivalents include cash on hand, demand deposits, and short‐term investments with original maturities of three months or less from the date of acquisition. For purposes of the statement of cash flows, the City’s proprietary funds consider their demand deposits and all highly liquid investments with an original maturity of three months or less when purchased to be cash equivalents. 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. 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. 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. 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 proprietary, pension trust, and custodial funds are reported using the economic resources measurement focus and the accrual basis of accounting. 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 from non-exchange transactions subject to eligibility requirements are considered available when the time and other eligibility requirements are met. Accordingly, revenues shared by the State of Indiana are considered available in the year in which the State allows the revenues to be appropriated, encumbered, and expended. All revenues are considered to be available only if 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, pensions, other post-employment benefits, 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 financed purchase obligations are reported as other financing sources. 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. Investments with a maturity of less than one year when purchased, non‐negotiable certificates of deposit, and other nonparticipating investments are stated at cost or amortized cost. Investments with a maturity greater than one year when purchased and all investments of the pension and OPEB trust funds are stated at fair value. Fair value is the price that would be received to sell an investment in an orderly transaction at year end. 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 differences 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. 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. 53 Buildings 20–100 years Improvements Other than Buildings 10–20 years Machinery, Equipment, and Vehicles 5–20 years Infrastructure 20–50 years 5. Compensated Absences 6. Bond Premiums and Discounts 7. Deferred Outflows/Inflows of Resources 8. Net Position Flow Assumption 9. Fund Balance Flow Assumptions 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. 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 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. 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. 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 assets 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 three 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 others are certain debits arising from changes in actuarial assumptions and timing differences for pensions and other post-employment benefits. 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. 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. 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 assets 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, credits resulting from a lease agreement, and pension and OPEB-related credits arising from changes in actuarial assumptions and timing differences. The bond refunding 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. The lease agreement category includes the initial measurement of a lease receivable, and any lease payments received at or before the commencement of the lease term that relate to future periods. Bond premiums and discounts are amortized in the government-wide and proprietary statements over the life of the issuances. 54 10. Fund Balance/Net Position a) Non-spendable fund balance (inherently non-spendable) includes 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) includes amounts subject to: • Limitations imposed by creditors, grantors, contributors, or laws and regulations of other governments. • Limitations imposed by law through constitutional provision or enabling legislation. c) Committed fund balance (self-imposed limitations set in place prior to the end of the period): d) Assigned fund balance (limitation resulting from intended use) consists of amounts where the: • Intended use is established by the body designated for that purpose (City Council). e) Unassigned fund balance (residual net resources) is the: 11. Use of Estimates 12. Restricted Net Position H. Revenues and Expenditures/Expenses 1 . Program Revenues All net position reported as restricted in the accompanying Statement of Net Position is restricted due to legally enforceable contractual obligations or Indiana law. During 2022, the City adopted GASB Statement No. 87, Leases (Statement No. 87). Statement No. 87 requires lessees to recognize a lease liability and an intangible right-to-use lease asset for leases that previously were classified as operating leases and for lessors, requires recognition of a lease receivable and deferred inflow of resources, thereby enhancing the relevance and consistency of information about a government's leasing activities. Statement No. 87 has been applied retrospectively to all years presented. The adoption had no impact on the opening fund balance or net position as of January 1, 2022. 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: 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. 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, and leased assets, net of accumulated amortization, 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. 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, liabilities, deferred outflows and inflows of resources 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, OPEB liabilities, deferred inflows and outflows of resources related to pensions and OPEB, and certain • Limitation imposed at the highest level of decision-making that requires formal action (passage of an ordinance) at the same level to remove. For the City, the City Council is the highest level of decision-making authority. • Intended use is established by an official authorized by the Council to make purchases, which includes the heads of most departments. • Negative unassigned fund balance is the excess over non-spendable, restricted, and committed fund balance over total fund balance. • Total unassigned fund balance in the General Fund is the excess of total fund balance over non-spendable, restricted, committed, and assigned fund balance. 55 2 . Property Taxes 3 . Income Taxes 4. Proprietary Funds Operating and Nonoperating Revenues and Expenses 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 and sewer utility funds are charges to customers for sales and services. 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. Taxable property is assessed at its value on January 1 of the year prior to the budget/levy year, and, before November 1 of that year. The Council is empowered to adopt the ensuing year property tax levies and rates. The Council’s action is subject to certain statutory limitations. In some instances, these statutory limitations may be appealed by the City, and adjusted as appropriate by the Indiana Department of Local Government Finance (DLGF). Such appeals must be filed by the City by October 10 or December 31, depending on the nature of the appeal. After November 1, levies, rates, and appropriations adopted by the Council are subject to review by the Indiana DLGF and adjusted, as appropriate, to meet statutory requirements and to reflect the results of levy appeals. In some circumstances, taxpayers may also appeal the levies and rates at a public hearing before the DLGF. Review by the DLGF must be completed by December 31 or January 15, depending on the type of levy appeal the City may file. Rates must then be published by county officials three times, at least one week apart. The County Auditor then computes a tax bill for each parcel. The County Auditor must apply a credit to each real estate tax bill that exceeds a certain percentage of the gross assessed value of the parcel. Those percentages are 1% for most single-family owner-occupied residences, 2% for most other residential property, and 3% for commercial and other real property. The credit is funded by reducing a portion of the levy of the City and each other overlapping taxing jurisdiction, on a pro-rata basis. Tax bills, net of credits, are due and payable in two installments on May 10 and November 10 of the budget/levy year. The City considers property tax revenue to be receivable when it is due and payable by the property owner, at which time the City has an enforceable legal claim on the revenue. 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. 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. 56 II. Detailed Notes on Certain Activities and Funds A. Cash and Investments 1. Deposits The deposits and investments of the Pension and OPEB Trust Funds, as discussed in Notes II.F. and II.G. below, are held separately. 2. Investments These investments are required by statute to have a stated final maturity of not more than five years. Below is a segmented time distribution for the City's debt investments at December 31, 2022: Investment Type Municipal Bonds U.S. Treasury Notes U.S. Government-backed Securities Total Investments by 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. Fair Value 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. 374,659 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. More than 5 The City's total cash deposits at December 31, 2022, were $239,250,303, of which $5,519,850 is restricted and $233,730,453 is unrestricted. The City's cash deposits are insured up to $250,000 at financial institutions insured by the Federal Deposit Insurance Corporation. Any cash deposits in excess of $250,000 are insured by the Indiana Public Deposits Insurance Fund (Fund) via the pledged collateral from the institutions securing deposits of public funds. The Fund is a multiple financial institution collateral pool administered by the State of Indiana. 1 to 5 29,337,865 374,659$ Investment Maturities (in Years) -$ 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. 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. - 22,016,404 7,321,461 - 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. The City’s investments in Federal Home Loan Bank Board and Federal Home Loan Mortgage Corporation are rated AA+ by Standard & Poor’s and Aaa by Moody’s Investors Service and the municipal bond investments are all rated AA or better by Standard & Poor’s and Moody’s Investors Service. The City has no deposits or investments denominated in foreign currencies and does not foresee having any foreign currency risk in the future. 22,415,038$ 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. 23,975 -$ 23,975 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. Less than 1 - 7,321,461$ -$ 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. 29,736,499$ 57 B. Receivables and Transfers 1. Receivables Revenue Source Property taxes Income taxes Lease and other Due from other funds Due from utility Total Revenue Source Accounts and other Due from associated utility Total The Sewer Utility recognizes a long-term liability of $661,555 due to the Water Utility for its share of the Water Utility's 2020 revenue bond. Description Unavailable Revenue Property taxes Income taxes Ambulance fees Supplemental Medicaid Other unavailable Total unavailable revenue 2. Transfers a) Transfers among Governmental Funds Transfers Out General Fund Redevelopment Commission Fund RDA Fund 2021 Project Fund Nonmajor Total The General Fund transferred $50,000 to a nonmajor fund to fund the Carmel Sidewalk Grant program. The Redevelopment Commission Fund transferred $529,449 to the General Fund to satisfy debt service payments. The Redevelopment Commission Fund transferred $4,220,923 to a nonmajor fund to satisfy debt service payments. 5,377,557 9,928,481$ 1,604,958$ 644,011 - 806,456 798,502$ 16,991,637$ 127,702 - - - - - Redevelopment Commission 9,684,360$ 2,313,891$ Water Utility 1,366,959$ 661,555 13,812,672 2021 Project Fund - Total 671,519$ - Nonmajor 351,310 661,555 2,313,891$ 3,633,472$ 9,236,152 1,010,315$ The General Fund, the Redevelopment Commission Fund, and nonmajor funds made financed purchase obligation payments to the Redevelopment Authority (RDA) Fund in the amounts of $15,998,421, $24,570,000, and $8,298,579, respectively, in order to satisfy debt service payments. Governmental funds report deferred inflows in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period. At the end of the fiscal year, the various components of unavailable revenue reported in governmental funds were as follows: 236,720 766,168$ Receivables at December 31, 2022, for business-type activities of the City's individual major enterprise funds consisted of the following: 8,592,141 Sewer Utility Total 16,328,421$ 29,320,372 - - 14,923,171 60,571,964$ General 93,361 644,011 -$ Redevelopment Authority -$ - - 1,010,315 21,435,208 8,298,579 351,310 General 806,456 Transfers In 2,028,514$ The General Fund transferred $280,000 of proceeds from a sale of property to a nonmajor fund to pay for park projects. -$ 529,448 - - - 15,998,421$ 24,570,000 Due from associated utility - noncurrent 69,390 - 69,390 33,405,951$ 23,721,591$ - -$ - Receivables at December 31, 2022, for governmental activities of the City's individual major governmental funds and nonmajor governmental funds, in the aggregate, consisted of the following: 2,165,461$ - 1,642,372$ 21,435,208 Total 48,867,000$ Nonmajor 330,000$ 4,220,924 58 Nonmajor funds transferred $440,370 to other nonmajor funds to close out certain construction cash accounts. b) Transfers between Governmental and Enterprise Funds Transfers Out C. Capital Assets Governmental Activities: Capital assets, not being depreciated Land Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated Buildings and improvements Machinery, equipment, and vehicles Infrastructure Total capital assets, being depreciated Less accumulated depreciation, for Buildings and improvements Machinery, equipment, and vehicles Infrastructure Total accumulated depreciation Total capital assets, being depreciated, net Governmental activities capital assets, net Business-Type Activities: Capital assets, not being depreciated Land & land rights Construction in progress Total capital assets, not being depreciated Capital assets, being depreciated Utility plant & equipment in service Total capital assets, being depreciated Less accumulated depreciation for Utility plant & equipment in service Total capital assets, being depreciated, net Business-type activities capital assets, net Transfers In 171,904,249 15,460,599 47,025,550 331,273,960 6,930,787 279,555,288$ Transfers Out 112,056,461 (72,204) 58,843,957 51,544,468 7,299,489 - - (13,464,271)$ 349,446,855 (1,014,047) 48,884,946 855,573$ 237,390,394 744,296,427 130,647,026$ (13,392,067) Balance 1,008,276,993$ Deletions/ -$ 5,410,095$ 32,100,601 18,277,565 (91,949,479)$ Balance 331,273,960 Dec 31, 2022 349,446,855 (32,466) (13,392,067) 226,115,820 289,826,039$ 969,579,445$ 105,158,140 (1,267,102) (130,958) 55,405,444 259,452,722 11,532,671 18,277,565 23,735,022$ 4,554,522$ 52,435,645 12,388,244 53,439,468 Jan 1, 2022 (1,014,047) Capital asset activity for Business-Type Activities for the year ended December 31, 2022, was as follows: 588,295,714 903,153,880 666,050,493 78,629,946 Additions/ Transfers In 262,848,807 (104,670) (384,013) Water Fund 480,743 58,924,152 8,710,974$ 286,768,582 - (91,565,466) (104,670) 303,528,952 Additions/ Dec 31, 2022 263,980,566 196,345,440$ A nonmajor fund transferred $49,373 to another nonmajor fund to fund storm water improvement projects. Transfers Out BalanceDeletions/ Transfers In Nonmajor funds transferred $3,856,885 to the Bond Bank Project Fund to satisfy debt service payments. The Water and Sewer Funds transferred $839,763 and $480,743, respectively, of available excess cash to the General Fund. 839,763$ 43,306,106 Total Balance Jan 1, 2022 (91,565,466) -$ 205,056,414$ Capital asset activity for Governmental Activities for the year ended December 31, 2022, was as follows: A nonmajor fund transferred $1,010,315 to the 2021 Project Fund to satisfy debt service payments. (1,398,060) 156,443,650 3,999,379 237,103,387 26,759,467 27,315,860 29,115,269 59,078,752 661,297,899 1,007,145,234 105,389,413 73,133,143 4,940,410 A nonmajor fund transferred $236,720 of grant revenue to the General Fund and $1,030,929 to other nonmajor funds for Federal grant projects. 1,320,506$ Sewer Fund General 52,017,080 107,183,512 11,346,778 59 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, 2022: Governmental Activities: Private placement bonds Other bonds secured by revenues Contract purchase obligations Unamortized bond premium Financed purchase obligations Compensated absences Total OPEB liability Portion of above due within one year Portion of financed purchase obligation payable due in more than one year Net pension liability and total OPEB liability due in more than one year Bonds payable due in more than one year Subtotal, bonds, premiums, and discounts (72,905,348)$ 44,570,372 (717,543) 841,626,754 717,851,088 Balance Balance 6,930,787 446,731 Additions Reductions (5,080,000)$ 534,075 33,690,253$ 878,442,514$ 115,258,578$ 23,524,710 8,800,605 (31,543,481) 49,805,036 30,778,488 9,856,577$ 805,127,337$ 42,502,299 2,062,886 719,425 (24,281,426) (2,810,739) 26,759,466 (42,191,837) Net pension liability 42,502,299$ 920,795,744$ 7,345,875 Less, 2,729,316 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. Typically the General Fund and the Motor Vehicle Highway Fund have been used in prior year's to liquidate the liabilities, other than debt. 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. 9,794,889 8,053,173 820,834,516 (4,850,813) 7,335,630 2,339,342 21,754,116 47,097,682 22,074,413 (3,568,351) Total governmental activities 65,820,233 - 36,499,417 (52,995) 2,729,316 2,449,014 824,552 Depreciation expense was charged as follows for the year ended December 31, 2022: 5,984,909 1,670,645 One Year - 6,930,787 66,635,000$ 4,965,000$ 54,121,774 -$ Jan 1, 2022 Due Within 2,118,054 10,266,286 71,715,000$ 62,984,075 62,450,000 755,929 686,944,569 Dec 31, 2022 60 Business-Type Activities: Sewer utility revenue bonds Water utility revenue bonds Total business-type bonds Water utility bond premium Utility financed purchase obligations Compensated absences Total OPEB liability Portion of above due within one year Portion of financed purchase obligation payable due in more than one year Net pension liability and total OPEB liability due in more than one year Bonds payable due in more than one year Governmental Activities Long-Term Debt: Redevelopment Authority Property Tax Lease Rental Bonds, Series 2022 3.000% - 5.000%2022 2042 62,450,000$ 62,450,000$ 2.000%- 5.000% 2018 1.973% - 3.864% 12,005,000 2.500% - 5.000%12,645,000 2043 Redevelopment Authority Taxable Lease Rental Bonds, Series 2017A (Midtown South) Taxable Economic Development Lease Rental Revenue Bonds, Series 2018A (Midtown West Project) 22,245,000 2042 6,980,000 (8,378,716)$ 2020 935,000 838,000 1,089,000 7,657,246$ 359,118 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: Taxable Lease Rental Revenue Refunding Bonds, Series 2020B 2038 25,812,471$ 3.990% - 4.850% 165,309,078 2,531,091 1,593,678$ 1,228,526 Subtotal, bonds, premiums, and discounts 2,531,091 1.576%- 3.762% 7,405,000 2017 2016 1,258,000 1,633,000 1,882,895 Year of 176,498,376$ 534,449 3,172,930 (4,822,000) Additions 134,545,303 Taxable Special Program Bonds, Series 2016 60,700,000 2035 24,215,000 Dec 31, 2022 Due Within (6,381,466) 30,763,775$ 1,640,943 One Year 23,099,000 20,863 (33,410) 165,668,196 -$ - Balance (26,934) 24,692,678 (6,408,400) 24,692,678 Net pension liability 472,295 169,159,453 2,531,091 136,836,212 Balance 32,323,241$ 8,170,000 Taxable Lease Rental Bonds, Series 2019A-2 2,417,344 Total business-type activities 125,195,000 25,812,471 Amount 2021 Outstanding 7,106,022 125,195,000 1,057,000 175,776,906$ Less, 140,975,518$ 2041Redevelopment Authority Property Tax Lease Rental Bonds, Series 2021 459,747 2035 2033 (1,559,466)$ 54,225,000 2036 (944,646) 3,869,227 169,545,505 - 3,611,107 277,524 (526,239) 2021 3.000% - 4.000% 2020 3,362,392 386,052 1,654,838 459,747 (466,019) 125,597 Reductions 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. Issue Amount Jan 1, 2022 Original 2016 54,225,000 1,373,000 0.211% - 2.301% 0.337%- 2.074%62,270,000 17,195,000 2036 1,214,000 2041 General Obligation Bonds, Series 2016B 2016 18,830,000 Taxable Lease Rental Revenue Refunding Bonds, Series 2020A 0.839%- 2.628% 2016 General Obligation Bonds, Series 2016C 2016 2019 6,725,000 20362.000%- 5.000% Taxable Redevelopment District Bonds, Series 2021 2.000%- 5.000% Year of MaturityInterest Rate General Obligation Bonds, Series 2016A 2036 General Obligation Bonds, Series 2016D 2.000%- 5.000% 61 * 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, 2022, the total of payments on the bonds listed above was 0.490% of taxable assessed value. 10,890,000 1,057,000 1,513,000 23,230,000 2016 General Obligation Bonds, Series 2016H 1,066,000 2.000%- 5.000% 2035 2024 9,580,000 General Obligation Bonds, Series 2016M Lease Rental Revenue Multipurpose Bonds, Series 2012B 2.000%- 5.000% 2016 10,337,000 2.000%- 5.000%30,720,000 Redevelopment Authority Taxable Lease Rental Bonds, Series 2016D (Midtown Phase 1A) Redevelopment Authority Lease Rental Bonds, Series 2016B (Economic Development Projects) 2029 2016 2016 2.000%- 5.000% 1,394,000 1,577,000 1,373,000 11,783,000 1.576%- 3.762% 6,535,000 2036 127,068,000 15,164,000 1,383,000 20162.000%- 5.000% 2016 2036 139,872,000** 2036 2035 2.000%- 5.000% 23,108,088 2016 1,099,000 1,426,000 2036 1,232,000 2036 1,216,000 1,166,000 2.000%- 5.000% 2016 4,830,000 Lease Rental Revenue Refunding Bonds of 2011 (West Clay road) Redevelopment District Bonds of 2013 19,649,150*2026 General Obligation Bonds, Series 2016G 2016 2.000%- 5.000% 1,216,000 933,000 5.000% 2016General Obligation Bonds, Series 2016I 8,205,000 2.000%- 5.000% 2.000%- 5.000% 2016 1,211,000 2016 2036 1,074,000 25,190,000 2.000%- 5.000% 2041 2016 2.000%- 5.000% 2016 2.000%- 4.000% 2025 2013 General Obligation Bonds, Series 2016L 2016 Storm Water Bond (Authorized: $44,500,000) Redevelopment Authority Lease Rental Bonds, Series 2016A (Public Infrastructure Projects) 20362.000%- 5.000%General Obligation Bonds, Series 2016E 2036 1,599,000 2036 General Obligation Bonds, Series 2016K Lease Rental Revenue Bonds of 2005 (unrefunded portion) General Obligation Bonds, Series 2016F 1,577,000 2036 2036 2011 5.800%- 8.450% 3,975,000 69,245,000 17,950,000 1.190%- 3.000% Redevelopment Authority Lease Rental Bonds, Series 2016C (Energy Center Project) General Obligation Bonds, Series 2016J 2005 2012 62 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: Loft A Private Placement 2011 6,000,000 2011 5,905,000 20336.000% Interest Rate 16,600,000 2017 1,280,000 Redevelopment Authority LIT Lease Rental Revenue Refunding Bonds, Series 2017 COIT Lease Rental Revenue Refunding Bond, Series 2014B (Northwest Clay Road) Taxable Local Income Tax General Obligation Bonds, Series 2021 10,550,000 17,745,000 Maturity 24,755,000 2025 Bonds issued in order to acquire capital assets, for which the City has pledged its local income tax (LIT) revenue up to the amount needed to satisfy the principal and interest on the bonds as they become due: 13,600,000 2.100% - 3.750% Year of 2041 In the year ended December 31, 2022, the total of payments on the bonds listed immediately above was 23.4% of annual county option income tax revenue. 2017 0.855% - 2.706% 2.360% - 2.360% 10,550,000 Original 2030 Outstanding 2.110%2033 3.940% 22,910,000 Year of 2027 Redevelopment Authority Taxable Lease Rental Bonds, Series 2017C-1 2027 Amount Municipal Facilities Building Corp Lease Rental Bonds, Series 2021 Year of 815,000^ 31,245,000 3.000% - 5.000%2017Redevelopment Authority Tax-Exempt Lease Rental Bonds, Series 2017B-1 3.200% - 3.200% Taxable Lease Rental Bonds, Series 2019A-1 Interest Rate Amount 2017 6,555,000 6,700,000 2037 2037 32,495,000^ 3.000%- 5.000%2014 Taxable Tax Increment Revenue Bonds, Series 2004A 2019 ^ To the extent that the City LIT Revenues would be insufficient to pay the bonds when due, bonds are payable from a special benefits tax (an ad valorem property tax). Year of Amount 450,000 24,000,000^ 2017 2024 9,630,000 Issue Maturity Amount Outstanding Storm Water District Revenue Bonds, Series 2020 Redevelopment Authority Tax-Exempt Lease Rental Bonds, Series 2017B-2 10,525,000^ Original 2021 5.150%2019 City Center Community Development Loan Taxable Lease Rental Bonds, Series 2017C-2 9,500,000 Original Amount Interest Rate 2048 In the year ended December 31, 2022, the total of payments on the bonds listed immediately above was 8.7% of annual incremental tax revenue. 6,000,000 23,180,000 3.000% - 4.000%2021 2041 2020 5,420,000 2004 Outstanding Issue 46,795,000 Maturity 2027 32,380,000 2019 2.006% - 3.200% 6.650% 32,380,000 Issue Bonds issued in order to acquire capital assets, for which the City has pledged its sewer or water user fee revenue, net of reasonable expenses of operation, repair, and maintenance, up to the amount needed to satisfy the principal and interest on the bonds for the term of the bonds: Year of Year of Amount 63 Restated Secondary Village #1 Total bond principal and contract purchases Financed purchase obligations Compensated Absences Total bond principal, contract purchases, financed purchase obligations, 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, financed purchase obligations, and compensated absences. Total City bonds, financed purchase obligations, and compensated absences. 2021 2039 2021 2039 5,100,000$ 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 expenses. 1,022,696,246$ The debt service requirement calculation above for the Water utility does not include debt service on a note in the amount of $17,745,000 due December 29, 2023. Management expects this note will be refinanced with a new note or a longer term bond series. The City has pledged up to $1,115,000 of income tax revenue, payable in the event an overlapping unit of government is unable to service certain debt. The City does not expect to be called upon to make these payments. N/ACompensated Absences In the year ended December 31, 2022, revenue, net of reasonable expenses for operation, repair, and maintenance, was 78.2% of debt service requirement for the Water utility and 138.7% of debt service requirement for the Sewer utility. Water Utility Junior Waterwork Revenue Bond of 2012 0.420% 21,625,000 4,030,526 459,747 N/A 168,545,287 Interest on long term debt has been charged as a direct expense in certain instances in which borrowing has been essential to the creation or continued existence of projects, as follows: 2,417,344 2012 2019 1.800%- 3.700%2037 2.000%- 4.000% 46,170,303 15,952,000 7,260,000 3.000%- 5.000% 1.750%2021 2032 2.320% 2016-2022 Sewer Utility 2009 SRF 2.250% 41,525,000 Waterworks Revenue Bond Anticipation Notes of 2019 165,668,196 10,345,000 2.340% Water Utility 2008 Capital Appreciation Bonds Bonds issued in order to acquire capital assets, for which the City has pledged its sewer or water user fee revenue, net of reasonable expenses of operation, repair, and maintenance, up to the amount needed to satisfy the principal and interest on the bonds for the term of the bonds: 3,100,000 2033 2028 11,000,000 2026 2,755,000 2021 Sewer Utility Revenue Bonds Financed purchase obligations 6,650,000 Sewer Utility 2005 Revenue Bonds Refinance 20,644,479 2,351,775 2005 3,055,000 Waterworks Special Program Bonds, Series 2016 17,745,000 5,894,000 Sewer Utility Revenue Bonds of 2020 2017 2039 2008 17,745,000 2023 15,954,000 2013 2025 Junior Waterworks Revenue Refunding Bonds of 2017 2036 53,735,000 N/A 854,150,959$ Interest Rate 13,915,000 4.130%- 5.790% 2030 2021 Sewer Utility Refunding Bonds Year of Junior Waterworks Revenue Bonds of 2021 1,430,630 2033 Outstanding 4,845,000$ 2,729,316 Total governmental activities bonds, contract purchases, financed purchase obligations, and compensated absences. 0.830% - 2.430% Year of Amount Outstanding 4,500,000 1.290% - 4.880% Interest Rate 2034 N/A Amount 804,345,923 Original 49,805,036 N/AN/A N/AN/A 2020 359,118 13,000,000 4.320%- 4.610% 2016 2009 Original Issue Maturity Amount 9,794,889 791,821,718 2016-2022 AmountYear of Year of LIBOR Maturity 15,782,989 Issue Contract purchases of capital assets: 64 Public safety Streets and infrastructure Economic development Total 2. Debt Service Requirements to Maturity Total Requirements Total Requirements Total Requirements Business-Type Activities: Total Requirements 2024 246,673,265$ Total 66,523,754$ Obligations Payable 111,282 4,960,282 417 Interest 2038 - 2042 29,720,105 2023 Accretion on CABs 717,851,088$ 16,867,404 77,396,851$ 23,083,931 11,783,641 217,180,105$ Thereafter 928,581,228$ - - 139,783,254 39,707,245 2038 - 2042 13,966,910 30,024,337$ 33,748,494 70,623,783 23,784,799 69,683,443 55,456,544 60,000 9,231,116 438,832 2027 45,898,644 70,390,593 257,897,118 Year Ended December 31 Thereafter 417 Year Ended 68,800,698 Direct Borrowings 36,499,417$ 12,163,214 2024 8,485,894 Principal 22,598,270 28,496,388$ 1,630,000 2026 December 31 2028 - 2032 16,867,404 11,478,343 226,031,000 2033 - 2037 62,037,756 2,488,567 3,803,710$ Total 58,227,392$ 2023 2028 - 2032 67,987,930 24,692,678$ 28,682,211 49,649,886 2027 27,448,904$ 2025 2,932,098 791,821,718$ 2038 - 2042 30,778,488$ 42,174,693 45,389,660 40,395,042 21,642,714 Principal 430,000 63,235,000 774,954,314 227,597,544$ 5,565,698 2043 - 2047 - 4,725,000 6,973,299 6,763,257 16,738,462$ 139,695 1,918,299 6,425,925 1,615,968 6,340,968 1,200,000 - 932,544 22,610,000 Notes and Loan Payable - 72,878,171 39,598,106 1,339,695 Obligations Payable - Total Interest 75,552,264 - 254,343,034 49,229,000 19,052,639 60,000 31,025,677 Notes and Loan and Contract Purchase 62,430,705 5,188,643 2043 - 2047 7,075,350$ Interest - 2025 2033 - 2037 9,672,889$ 1,760,925 389,895 1,589,895 - 287,246 1,219,762 838,602 3,126,034 1,468,257 83,373,462$ 16,860,000 3,569,180 465,083$ 2,110,350$ 27,798,643 887,909 - 1,200,000 - 794,612 7,335,630$ 2,146,013 19,006,013 - - 2028 - 2032 4,965,000$ 1,190,872$ Total 10,004,125 Contract Purchase 1,221,012$ Direct Placement 1,223,366 425,167 Notes and Loan Payable - 4,665,000 335,457 Governmental Activities: 381,160 Year Ended 2026 2023 2024 1,219,779 Total 12,245,745 Principal Principal December 31 1,219,790 1,972,271 14,277,846 26,565,955 12,305,575 51,002,569 - 2027 Principal 60,417 - 31,866,118 3,297,747 64,435,000 81,881,938 - 5,295,000 20,808,142 - 332,852,994 Total 76,264,686 238,891,105 209,171,000 2,337,259$ Interest 68,281,639 8,832 228,607,000 78,509,960 2026 4,849,000 700,983,684 1,021,627,579$ 66,635,000$ 2033 - 2037 1,778,527 5,955,593 5,055,000 60,417 755,929$ 23,440,742$ Interest 443,146 301,485,171 2025 148,527 24,549,695 65 Total Requirements 3. Financed Purchase Obligations 4. Lease Revenue and Lease Liability Principal and interest requirements for lease liabilities to maturity are as follows: 21,080 541 21,621 12,566$ Year Ended December 31 2023 2024 2025 2026 Principal Interest Total 84,088$ 89,996 93,906 64,860 252,371$ 2033 - 2037 Year Ended 2026 25,525,824 2,701,385$ 194,425 2,380,587 The City is lessor on certain leases for commercial office space in a building owned by a component unit. Lease terms range up to 10 years, and expected lease renewals range up to an additional 5 years. All rental amounts are fixed. The City recognized $378,262 in inflows of resources related to leases during 2022. 286,222$ 28,135 33,606 2,186,162 98,850 65,900 Business-type Activities: 258,526 2024 Principal Interest 1,432,956 65,132 450,861 100,219 98,850 2027 360,254$ Total 217,490 16,853 482,674 96,654$ 1,085,439 2028 - 2032 1,533,175 The City has entered into various financed purchase obligations for equipment for various departments, including Police, Fire, Streets, and for a golf course. As of December 31, 2022, the City had assets with an original cost of $15,782,989 and accumulated depreciation of $11,039,329 financed through purchase obligations. 2024 Governmental Activities: 534,449$ 2023 TotalDecember 31 Principal Interest 2026 December 31 Total 2,417,344$ The City is lessee on retail space in a certain commercial building, and in turn, the City is a sub-lessor for that commercial space. All rental amounts are fixed. The book value of the leased retail space is $332,850. 332,850$ 422,726 2028 - 2032 51,783 547,806 Year Ended 2023 934,188 43,591 22,175 10,630,307$ 1,187,067 8,854 4,944 1,040 27,404$ 2,703,566$ 165,309,078$ 2025 977,779 Accretion on CABs 2025 624,621$ 480,399 532,182 2,449,014$ 1,684,954 Total 835,419$ 142,739 1,827,693 The Water and Sewer Utilities entered into various financed purchase obligations for certain equipment. As of December 31, 2022, the Utilities had assets with an original cost of $2,455,159 and accumulated depreciation of $700,732 financed through purchase obligations. 22,621 9,794,888$ 101,628 446 2033 - 2037 2027 Total 90,172$ 292,132 234,343 66 5. Other Commitments Total assigned from the General Fund balance: Construction commitments for the Water and Sewer Enterprise Funds were $180,000 and $700,000, respectively. 6. Contingent Grants 7. Limited Recourse Obligations Payable Solely from Property Taxes Generated from a Specific Project Site 2022 Economic Development Revenue Bonds (Lot One Project) 2021 Economic Development Revenue Bonds (North End Project) 2021C Subordinate Economic Development Revenue Bonds (Proscenium) 2021B Senior Economic Development Revenue Bonds (Proscenium 2021ASenior Economic Development Revenue Bonds (Proscenium) 2021B Subordinate Economic Development Revenue Bonds (Signature) 2021A Senior Economic Development Revenue Bonds (Signature) 2021 Economic Development Revenue Bonds (Firehouse Project) 2021 Economic Development Revenue Bonds (The Corner Project) 2021 Economic Development Revenue Bonds (Franciscan Health Project) 2020 Economic Development Tax Increment Revenue Bonds (City Center Phase II) 2020 Economic Development Tax Increment Revenue Bonds (Brookshire Village Shoppes Project) 2018 Tax-Exempt Economic Development Revenue Bonds (KAR Auction Services, Inc.) 2018 Taxable Economic Development Revenue Bonds (Meridian and Main - Indiana Spine Group II Project) 2018 Taxable Economic Development Revenue Bonds (Sunrise on the Monon) 2017 Economic Development Revenue Bonds (Grand & Main - The District) 2015 Economic Development Revenue Bonds (The Olivia on Main) 2011B Subordinate Economic Development Revenue Bonds (Arts District Lofts & Shoppes) 2011A Senior Economic Development Revenue Bonds (Arts District Lofts & Shoppes) 2011 Taxable Economic Development Revenue Bonds (Meridian and Main - Indiana Spine Group I Project) 2011 Taxable Economic Development Revenue Bonds (116th Street Centre Project) 2006B Taxable Economic Development Revenue Bonds (Buckingham-Gramercy Project) 8. Schedule of Outstanding Principal on Advance Refunded Debt Outstanding Amount Outstanding Bonds Taxable Lease Rental Revenue Refunding Bonds, Series 2020A Taxable Lease Rental Revenue Refunding Bonds, Series 2020B Lease Rental Revenue Multipurpose Bonds, Series 2012A Taxable Lease Rental Revenue Multipurpose Bonds, Series 2012B Carmel Bond Bank Lease Rental Refunding Bonds, Series 2016C Carmel Bond Bank Special Program Bonds, Series 2016 2/1/2038 30,040,000 Certain City officials are empowered to issue purchase orders and enter into contracts that constitute contractual obligations of the City. For governmental funds, these obligations are included in, and do not exceed, the assigned, committed and restricted fund balances of the respective funds. The Carmel Redevelopment Commission, an integral part of the City, is contingently liable for the issuance of up to $25.5 million of grants, via a community development corporation which is a component unit of the City. The purpose of the contingent grants is to encourage private investment in the area served by the community development corporation. The grants are contingent upon the need to cover payments on loans used to finance the private investment. As of December 31, 2022, no grant payments had been made by the City in connection with these loans. The Administration believes no such payments will be needed in the future. Outstanding 8,565,071$ 2,050,000 2014 LR Refunding Bonds $ 258,525,000 2/1/2033 Various claims and lawsuits are pending against the City. At December 31, 2022, 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. 54,060,000 1/15/20352010B COPS The City has entered into certain transactions with private firms to redevelop designated real property meeting certain criteria. In these instances, bonds are issued to finance improvements on property designated by the City but owned by the private firm and its affiliates. The bonds are purchased by the same private firm and affiliates. The private firm may supplement these improvements with additional improvements financed from its own resources. As improvements are completed, incremental property tax revenue is generated, and a pre-determined portion of that revenue is applied to the payment of the bonds. This pre-determined share of tax paid by the private firm is the sole source of repayment. There is no recourse to the City if this revenue is inadequate to pay principal and interest on the bonds. The private firm and its affiliates are, in substance, the property owner, the owner of the bonds, and the taxpayer. Accordingly, the bonds are not reported as liabilities of the City in the accompanying financial statements. Following are the currently active transactions of this kind. Refunded Bonds Through 115,900,000$ Bonds Refunded 2012A LR Multi Bonds 44,645,000 2010A COPS 11,830,000 2010C COPs 7/15/2035 2008B Jr. Water 6/1/2026 1/15/2035 67 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 F. Pension Plans 1. Single Employer Defined Pension Plans Plan Descriptions: 2021 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 $175,000 per year. The City may be exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; job-related illnesses or injuries to employees; medical benefits to employees, retirees, and dependents; and natural disasters. The City administration believes these risks are adequately covered by the purchase of insurance. Settlements in excess of insurance, if any, have not been material in the past three years. The plans also provide a death benefit for a surviving spouse to receive the greater of 1,480,423$ 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: 2022 15,204,616 910,893$ 1,072,881$ Amounts are paid into the Fund by user departments. Funds are available for claims, claim reserves, and administrative costs of the program. Interfund transfers into the Fund are based upon the actual claims incurred of each department's current year eligible employees. The basis for estimating unpaid claims, including specific incremental claim adjustment expenditures, if any, is a study of actual claims experience in recent past periods. The 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. 1,072,881$ 15,042,628 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; 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. 15,811,018 15,403,476 1. 30% of the monthly pay of a first-class patrol officer, or 2. 55% of the benefit the retiree was receiving. In addition, each child of the deceased member will receive 20% of the monthly pay of a first-class officer or firefighter. Total benefit for all such beneficiaries may not exceed the pension benefit the deceased member was receiving. In addition to the above benefit, a funeral benefit of $12,000 will be paid to heirs of the deceased member. 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 Controller 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. 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. 68 Contributions: Net Pension Liability and Pension Expense: Assumptions and Other Inputs Measurement Date 2.50% - 1977 Plan Converted 14 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. Police SOA published mortality table: RP-2014 blue collar mortality table adjusted to 2006 base year. Separate tables for males and female participants. Separate tables for active employees, healthy annuitants, and disabled participants. The City's net pension liability of $8,185,266 for the '25 Police Officers' Plan and $9,704,787 for the '37 Firefighters' Plan was measured as of December 31, 2022, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2022. For the year ended December 31, 2022, the City recognized pension expense of $611,713 for the '25 Police Plan and $1,325,667 for the '37 Firefighters Plan. Retirees and beneficiaries currently receiving benefits - Fire 14 - Discount Rate 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, 2022, the State of Indiana contributed $612,374 to the '25 Police Officers' Plan and $597,247 to the '37 Firefighters' Plan on behalf of the City during the fiscal year. 14 Mortality and Mortality Improvement 1925 or 1937 Plan Valuation Date Current active employees SOA published mortality improvement scale: MP-2021 generational, which projects mortality improvement indefinitely after 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. 14 4.31% Police Officers; 4.31% Firefighters for 2022 December 31, 2022–Police Officers' member census data as of December 31, 2022, and Firefighters' member census data as of December 31, 2022, was used in the valuation. Membership in the Plans as of the most recent actuarial valuation was comprised of the following: - 2.50% The plans are closed to new entrants. December 31, 2022 Membership: Terminated employees entitled to but not yet receiving benefits Total Plan Members 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 $10,000 bonus by the State of Indiana for exercising the option to convert. After such a conversion, the member is covered by the benefit structure of the new plan, but the benefits are still financed by the local unit. Of the Carmel members, four retired police officers and three retired firefighters converted. Cost of Living Increase: 69 Changes in the Net Pension Liability: Changes for the year: Service Cost Interest Changes in Plan Provisions Difference between Expected and Actual Experience Changes in Assumptions Benefit Payments Employer contributions Employee contributions Net transfers into (out of) trust Net investment income Benefit payments Administrative expenses Other Fiduciary net position as a percentage of total pension liability '25 Police Officers' Plan Fiscal Year End Thereafter 8,318,027$ 2027 - Net difference between projected and actual earnings on pension plan investments - At December 31, 2022, the City reported a net pension liability of $8,185,266 for the '25 Police Officers' Plan. -$ - - 2,065$ Deferred inflows of resources resulting from the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows: 8,323,874$ 5,224$ 2025 - - 2026 1,031 (3,685) - Changes in assumptions 169 - -$ 5,224 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: - 8,185,266$ Balances as of January 1, 2022 130,048$ (607,499) (607,499) - - 8,187,979$ (607,499) 138,608$ (612,374) - - 1,959 - Balances as of December 31, 2022 - - 1.67% For the year ended December 31, 2022, the City recognized pension expense of $611,713, which included net amortization of deferred amounts from liability experience, assumption changes and investment gains and/or losses. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the '25 Police Officers' Plan from the following sources: - - 2023 Total 5,224$ -$ Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience - 607,499 (609,973) - - 945,303 3,685 - (609,973) Total Pension Liability - - 2024 Net Pension Liability Plan Fiduciary Net Position 612,374 - - 945,303 278,016 - - - 278,016 Increase (Decrease) - '25 Police Officers' Plan 70 Changes in the Net Pension Liability: Changes for the year: Service Cost Interest Changes in Plan Provisions Difference between Expected and Actual Experience Changes in Assumptions Benefit Payments Employer contributions Employee contributions Net transfers into (out of) trust Net investment income Benefit payments Administrative expenses Other Fiduciary net position as a percentage of total pension liability '37 Firefighters' Plan Fiscal Year End Thereafter Plan Fiduciary Net Position 301,525 2027 (879,089) (597,247) 13 - 322$ 322 Deferred inflows of resources resulting from the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows: 250 - - Total 322$ -$ 2025 1,023 - - - 614,080 - - 597,247 (1,023) - - - Changes in assumptions - (614,080) 0.05% Increase (Decrease) - 301,525 '37 Firefighters' Plan 8,976,936$ 20,207$ - Total Pension Liability 2024 2026 Deferred Outflows of Resources Deferred Inflows of Resources At December 31, 2022, the City reported a net pension liability of $9,704,787 for the '37 Firefighters' Plan. 2023 122$ Balances as of December 31, 2022 9,704,787$ (63) Net difference between projected and actual earnings on pension plan investments - - Balances as of January 1, 2022 4,397$ For the year ended December 31, 2022, the City recognized pension expense of $1,325,667, which included net amortization of deferred amounts from liability experience, assumption changes and investment gains and/or losses. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the '37 Firefighters' Plan from the following sources: Net Pension Liability (879,089) - - 9,709,184$ 1,903,685 - - - - (614,080) (614,080) 8,997,143$ Differences between expected and actual experience -$ -$ - - - - - - Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: - 1,903,685 - 71 Sensitivity of Net Pension Liability to Changes in the Discount Rate: Participation by State of Indiana ASSETS: Cash and cash equivalents Receivable from State of Indiana Total assets LIABILITIES: payroll withholdings NET POSITION: restricted for pensions STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - PENSION FUNDS ADDITIONS: Employer 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 1% Decrease $ 8,755,731 (15,811) '37 Fire Pension Trust Fund $ 597,247 2,131 607,499 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: $ 8,993,761 Current Discount Rate STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDS 616,211 8,559 130,048 609,481 $ 612,374 51,509 $ 138,607 '37 Fire Pension Trust Fund $ 9,704,787 '25 Police Officers' Plan December 31, 2022 $ 4,396 $ 138,607 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, 2022. The amounts were $612,374 and $597,247, respectively. The State of Indiana is not obligated to make such payments in the future, and the City remains liable for future pension expenditures. 614,080 1% Increase '25 Police Pension Trust $ 10,852,652 50,965 20,207 $ 4,396 $ 8,185,266 For the Fiscal Year Ended December 31, 2022 $ 7,489,760 55,905 51,509 '37 Firefighters' Plan 3,685 189,572 50,965 '25 Police Pension Trust $ 138,607 1,023 $ 4,396 2,130 600,400 1,982 1,981 618,040 72 2. Cost-Sharing Multiple-Employer Defined Benefit Pension Plan PUBLIC EMPLOYEES' RETIREMENT FUND (PERF) Plan Description: 1. 2. All other civilian employees of the City (City). Benefits Provided: Full Retirement Benefit At age 65 with at least 10 years of creditable service (eight years for certain elected officials). At age 60 with at least 15 years of creditable service. At age 55 if age and creditable service total at least 85 (“Rule of 85”). At age 55 with 20 years of creditable service and active as an elected official in the PERF-covered position. At age 70 with 20 years of creditable service and still active in the PERF-covered position. Early Retirement Benefit Disability Benefit Survivor Benefit 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 components to the PERF Hybrid Plan. The first is PERF defined benefit plan (DB), the monthly employer-funded defined benefit component, the second component is the Public Employees' Hybrid Members Defined Contribution Account (PERF DC), a member-funded account. The City plan is allocated between governmental and business-type activities based on the percentage of total civilian (non-uniformed) PERF expenditures during the City's fiscal year ended December 31. City participants are viewed by INPRS to be classified into two groups, solely for purposes of actuarial evaluation: Members who have service in both PERF DB and either TRF Pre-'96 DB or TRF '96 DB, have the option of choosing from which of these funds they would like to retire. An active member qualifying for Social Security disability with five years of creditable service may receive an unreduced retirement benefit for the duration of their disability (minimum of $180 per month). First time new employees hired by the State or a participating political subdivision who offers a choice, have a one-time election to join either the PERF Hybrid plan or PERF MC DC. Refer to the Description of Defined Contribution Funds for discussion of both the PERF DC and PERF MC DC plans. A new hire that is an existing member of PERF Hybrid and was not given the option for the PERF MC DC plan is given the option to elect PERF MC DC or remain in PERF Hybrid. Age 50 and minimum of 15 years of creditable service (44 percent of full benefit at age 50, increasing five percent per year up to 89 percent at age 59). Employees who are compensated through the Parks Department of the General Fund and through certain other funds committed or restricted for parks (Park). If a member dies after June 30, 2018, a spouse or dependent beneficiary of a member with a minimum of 10 years of creditable service receives a benefit as if the member retired the later of age 50 or the age the day before the member’s death. If a member dies while receiving a benefit, a beneficiary receives the benefit associated with the member’s selected form of payment: Five Year Certain & Life, Joint with 100 percent Survivor Benefits, Joint with Two-Thirds Survivor Benefits, or Joint with One-Half Survivor Benefits. 73 Contribution Rates: Actuarial Assumptions and Inputs: Significant actuarial assumptions and other inputs used to measure the total pension liability: Type of Plan The Public Employees’ Retirement Fund is a cost-sharing multiple-employer plan for GASB accounting purposes. Measurement Date June 30, 2022 Valuation Date Assets:June 30, 2022 Liabilities: Price Inflation 2.00% per year Future Salary Increases 2.65% - 8.65% based on years of service Cost-of-Living Increases As of June 30, 2022: As of June 30, 2021: Mortality Assumption Beneficiaries – Contingent Survivor table with no set forward for males and a 2 year set forward for females. The City's contribution to the plan for the year ending December 31, 2022, was $3,582,578 for City participants and $289,370 for the Park participants, which was equal to the required contributions for the year. Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019. Proportionate Share of the Net Pension Liability: 0.4% beginning on January 1, 2022 0.5% beginning on January 1, 2034 0.6% beginning on January 1, 2039 Disables – General Disabled table with a 140% load. Healthy Employees – General Employee table with a 3 year set forward for males and a 1 year set forward for females. Members in pay status were granted a 1.00% COLA on January 1, 2022 and no COLA on January 1, 2023. Thereafter, the following COLAs, compounded annually, were assumed: At December 31, 2022, the City reported a liability of $13,029,111 for its proportionate share of the City net pension liability and a liability of $1,669,639 for its proportionate share of the Park 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, 2022, measurement date was 0.0041312 for the City plan and 0.0005294 for the Park plan. June 30, 2021 – The TPL as of June 30, 2022 was determined based on an actuarial valuation prepared as of June 30, 2021 rolled forward one year to June 30, 2022, using the following key actuarial assumptions and other inputs, such as benefit accruals and actual benefit payments during that time period. Members in pay status were granted a 1.00% COLA on January 1, 2022 and no COLA on January 1, 2023. Thereafter, the following COLAs, compounded annually, were assumed: 0.4% beginning on January 1, 2024 0.5% beginning on January 1, 2034 0.6% beginning on January 1, 2039 Retirees – General Retiree table with a 3 year set forward for males and a 1 year set forward for females. The employer defined-benefit contribution rate is based on an actuarial valuation and is adopted, and may be amended, by the INPRS Board. For 2022, the City contributed 11.2% of employee compensation to the plan. The DC Account consists of the employee contribution, which is set by statute at 3% of compensation, as defined by Indiana statutes, plus the interest/earnings or losses credited to the employee's account. The employer may choose to make the contributions on behalf of its participating employees, which the City has elected to do. In addition, under certain circumstances, employees may elect to make additional voluntary contributions of up to 10% of their compensation into their DC Account. An employee's contribution and interest credits belong to the employee and do not belong to the State or the City. 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 developed. Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuations are presented below. 74 Experience Study Discount Rate 6.25%, net of investment expenses Discount Rate Sensitivity 2022 City 2022 Park Classes of Plan Members Covered Money-Weighted Rate of Return In the past several years, the Board has followed its current funding policy and the State has complied in its contributions to the plan. Therefore, if past practice is continued, the appropriations will be sufficient to fully fund the plan within 10 to 20 years. Deterministic projections indicate the actuarially determined contribution rate will decline over the coming years. As a result, it is presumed that the projected plan assets will be sufficient to cover the future benefit payments for current members and a detailed projection of plan assets and cash flows has not been prepared. The most recent comprehensive experience study, based on member experience between June 30, 2014 and June 30, 2019, was completed in February 2020. The demographic assumptions were approved by the Board in June 2020 and were used beginning with the June 30, 2020 actuarial valuation. Economic assumptions were updated and approved by the Board in May 2021 following the completion of an Asset-Liability study and first used in the June 30, 2021 actuarial valuation. 1% Decrease 5.25% 5,537,613$ 6.25% The INPRS Board of Trustees has established a funding policy of setting the employer contribution rate equal to the greater of 11.2% (the current contribution rate) or a rate equal to the actuarially determined contribution rate, which is based on the assumptions and methods selected by the Board for the annual actuarial valuations and projected covered member payroll. The June 30, 2022 actuarial valuation assumes a long-term rate of return on assets of 6.25%, a 20-year level dollar closed method for amortizing the future layers of unfunded actuarial accrued liability (30 years for amortization layers established prior to June 30, 2016), and a 5-year smoothing method for recognizing investment gains and losses in the actuarial value of assets. 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 6.25 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 (5.25%) or one percentage point higher (7.25%) than the current rate: The discount rate is equal to the expected long-term rate of return on plan investments, net of investment expense and including price inflation. There was no change in the discount rate from the prior measurement date. 1% Increase The June 30, 2022 valuation was performed using census data provided by INPRS as of June 30, 2021. Standard actuarial techniques were used to roll forward the total pension liability computed as of June 30, 2021 to the June 30, 2022 measurement date using actual benefit payments during that period of time. 2,820,631$ 22,010,938$ Current Rate 7.25% 709,627$ 13,029,111$ 1,669,639$ The money-weighted rate of return equals investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested. For the fiscal year ending June 30, 2022, the moneyweighted return on the plan assets is -6.6%. 75 Changes in the Net Pension Liability: Changes for the year: Changes in Proportion Service Cost Interest Cost Experience (Gains)/Losses Assumption Changes Plan Amendments Benefit Payments Service Purchases: Employer Contributions Employee Contributions Member Reassignments Employer Contributions Non-employer Contributions Employee Contributions Net Investment Income Administrative Expenses Other Net Changes Changes for the year: Changes in Proportion Service Cost Interest Cost Experience (Gains)/Losses Assumption Changes Plan Amendments Benefit Payments Service Purchases: Employer Contributions Employee Contributions Member Reassignments Employer Contributions Non-employer Contributions Employee Contributions Net Investment Income Administrative Expenses Other Net Changes (98,354) (90,986) (7,368) (1,203,076) (1,112,940) (90,136) - 1,715,394 - - Total Pension Liability - (4,353,880) 4,353,880 - City Plan Increase (Decrease) 302,039 (3,924,453) (3,924,453) - - - 575 575 - 163 - 7,585,713 163 Balances as of December 31, 2022 74,370,664$ 61,341,554$ Balances as of January 1, 2022 5,443,399$ - (502,906) 981,083 - 786,746$ - Plan Fiduciary Net Position - 4,472,928 Net Pension Liability - - - 38,705 - (5,870,319) - - 38,705 - - - (502,906) 4,489 - - 4,489 - 573,191 - 1,270 1,270 - (23,608) (23,608) - - 2,594,038 (2,594,038) - - - Balances as of January 1, 2022 10,501,012$ 9,714,266$ 981,083 573,191 125,723 7,860,723$ - 72,655,270$ 67,211,872$ 4,472,928 - - - 302,039 - - 13,029,111$ Net Pension Liability Parks Plan Increase (Decrease) (3,025) (3,025) - - 332,418 (332,418) 1,669,639$ Balances as of December 31, 2022 - - - (970,650) (1,853,543) 882,893 - (557,936) 557,936 - (9,902) 9,902 - 10 (10) 9,530,362$ 125,723 (77,269) 77,269 - 80 (80) Total Pension Liability Plan Fiduciary Net Position 76 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: City Parks 280,955$ 3,822,876 1,607,930 Changes in assumptions 1,764,728 169,263 Pension contributions subsequent to measurement date 182,586 For the year ended December 31, 2022, the City recognized pension expense of $1,854,826 for the City plan and $148,996 for the Park plan. Pension expense included net amortization of deferred amounts described below. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the PERF Hybrid Plan from the following sources: Deferred Inflows of Resources 260,369$ At December 31, 2022, the City reported a net pension liability of $13,029,111 for the City Plan and $1,669,639 for the Parks Plan. 640,591 557,429 - 6,350$ 630,019$ Pension contributions subsequent to measurement date 154,904 36,003$ 260,369 Total 33,611 640,591$ Deferred Outflows of Resources 6,917 2,088,649 5,911,525$ 475,115 71,433 Contributions subsequent to the June 30, 2022, measurement date of the net pension liability, but before the end of the employer's reporting period, are recognized as a reduction of the net pension liability in the subsequent fiscal period rather than in the current fiscal period. Differences between expected and actual experience Changes in proportion and differences between City contributions and proportionate share of contributions - Differences between expected and actual experience Total that will be recognized in pension expense (income) based on the table below 206,051 - Changes in proportion and differences between City contributions and proportionate share of contributions 226,144 Deferred Inflows of Resources Changes in assumptions Total that will be recognized in pension expense (income) based on the table below - Net difference between projected and actual earnings on pension plan investments Net difference between projected and actual earnings on pension plan investments Deferred Outflows of Resources Total 49,551$ 77 Pension Plan Report and Fiduciary Net Position: Plan Description: Benefits Provided: Contributions and Funding Policy: Year Ending December 31, - 2025 City (4,170)$ Thereafter - The fund provides retirement, disability, and survivor benefits to full-time sworn officers of a police force of an Indiana city or eligible town, along with full-time firefighters employed by an Indiana city, town, township, or county. Administration of the fund is generally in accordance with Indiana Code Article 36-8 and Indiana Administrative Code Article 35-2, other Indiana pension law. (248,607) - 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. Differences between expected and actual experience and changes in assumptions are 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: 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 developed. Key methods and assumptions used in calculating the total pension liability in the latest actuarial valuations are presented below. 217,960 3,182,285$ 2023 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND DISABILITY FUND Amount Parks 2027 2026 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 (844) GO-INPRS, by emailing questions@inprs.in.gov, or by visiting www.in.gov/inprs. 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 (or rehired) after April 30, 1977. Proportionate Share of the Net Pension Liability: 1,700,879 2024 Total Amount 214,746$ 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 2022, 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. (66,784) At December 31, 2022, the City reported a liability of $7,009,627 for police and a liability of $8,841,169 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, 2022, measurement date was 0.0108198 for police and 0.0136469 for fire. 1,066,661 - The City's contribution to the plan for the year ending December 31, 2022, was $2,367,884 for police participants and $2,964,234 for fire participants, which was equal to the required contributions for the year. 663,352$ 67,740 78 Actuarial Assumptions and Inputs: Significant actuarial assumptions and other inputs used to measure the total pension liability: Type of Plan The 1977 Police Officers’ and Firefighters’ Retirement Fund is a cost-sharing multiple-employer plan for GASB accounting purposes. Measurement Date June 30, 2022 Valuation Date: Assets June 30, 2022 Liabilities Price Inflation Future Salary Increases Cost-of-Living Increases As of June 30, 2022: As of June 30, 2021: Mortality Assumption Experience Study Discount Rate 6.25%, net of investment expenses 2.65% Healthy Employees – Safety Employee table with a 3-year set forward for males and no set forward for females. The INPRS Board of Trustees has established a funding policy of setting the employer contribution rate equal to the greater of 18% (the current contribution rate) or a rate equal to the actuarially determined contribution rate, which is based on the assumptions and methods selected by the Board for the annual actuarial valuations and projected covered member payroll. The June 30, 2022 actuarial valuation assumes a long-term rate of return on assets of 6.25%, a 20-year level dollar closed method for amortizing the future layers of unfunded actuarial accrued liability (dropped below 100% funded as of June 30, 2019), and a 5-year smoothing method for recognizing investment gains and losses in the actuarial value of assets. Beneficiaries – Contingent Survivor table with no set forward for males and a 2-year set forward for females. The discount rate is equal to the expected long-term rate of return on plan investments, net of investment expense and including price inflation. There was no change in the discount rate from the prior measurement date. 1.95% compounded annually, beginning July 1, 2023. Actual COLA increases at July 1, 2021 (1.9%) and July 1, 2022 (3.0%) are reflected in the valuation. Retirees – Safety Retiree table with a 3-year set forward for males and a 1 year set forward for females. The most recent comprehensive experience study, based on member experience between June 30, 2014 and June 30, 2019, was completed in February 2020. The demographic assumptions were approved by the Board in June 2020 and were used beginning with the June 30, 2020 actuarial valuation. Economic assumptions were updated and approved by the Board in May 2021 following the completion of an Asset-Liability study and first used in the June 30, 2021 actuarial valuation. Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019. 2.00% 1.95% compounded annually, beginning July 1, 2020. Actual COLA increases at July 1, 2020 (2.1%) and July 1, 2010 (1.95%) are reflected in the valuation. June 30, 2021 – The TPL as of June 30, 2022 was determined based on an actuarial valuation prepared as of June 30, 2021 rolled forward one year to June 30, 2022, using the following key actuarial assumptions and other inputs, such as benefit accruals and actual benefit payments during that time period. Disables – General Disabled table. 79 Discount Rate Sensitivity 2022 Police 2022 Fire Classes of Plan Members Covered Money-Weighted Rate of Return Changes in the Net Pension Liability: Changes for the year: Changes in Proportion Service Cost Interest Cost Experience (Gains)/Losses Assumption Changes Plan Amendments Benefit Payments Service Purchases: Employer Contributions Employee Contributions Member Reassignments Employer Contributions Non-employer Contributions Employee Contributions Net Investment Income Administrative Expenses Other Net Changes 1,452,885 1,565,887 (113,002) (2,695,419) 7,973 - (5,418,403)$ The money-weighted rate of return equals investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested. For the fiscal year ending June 30, 2022, the moneyweighted return on the plan assets is -6.6%. 7,973 - 3,990 - - 92 92 Balances as of December 31, 2022 89,608,122$ 82,598,494$ (629,534) - 7,009,627$ Police Plan Increase (Decrease) - 3,990 80,764,325$ 2,277,954 Balances as of January 1, 2022 - - - - 629,534 - 2,277,954 5,197,093 - 5,197,093 5,848,807 - 1,911,498 (1,911,498) - - - - 87,045,990$ - - - (22,425) 22,425 (6,281,665)$ 182 (182) 8,843,797 (4,447,495) 13,291,292 5.25% - 7.25% 21,016,317$ 26,507,660$ (4,295,923)$ 1% Increase 8,841,169$ Total Pension Liability Plan Fiduciary Net Position Net Pension Liability (Asset) (2,695,419) (5,848,807) 2,599,229 - 2,599,229 6.25% The June 30, 2022 valuation was performed using census data provided by INPRS as of June 30, 2021. Standard actuarial techniques were used to roll forward the total pension liability computed as of June 30, 2021 to the June 30, 2022 measurement date using actual benefit payments during that period of time. 1% Decrease Current Rate 7,009,627$ 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 6.25 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 (5.25%) or one percentage point higher (7.25%) than the current rate: 80 Changes for the year: Changes in Proportion Service Cost Interest Cost Experience (Gains)/Losses Assumption Changes Plan Amendments Benefit Payments Service Purchases: Employer Contributions Employee Contributions Member Reassignments Employer Contributions Non-employer Contributions Employee Contributions Net Investment Income Administrative Expenses Other Net Changes Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: Police (155,775) (167,891) 12,116 2,873,159 10,057 - - 115 For the year ended December 31, 2022, the City recognized pension expense of $1,859,854 for police and $2,341,429 for fire, which included net amortization of deferred amounts described below. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to the 1977 Plan from the following sources: - Balances as of December 31, 2022 - - (3,399,704) 8,841,169$ Deferred Inflows of Resources 97,814$ Differences between expected and actual experience Changes in proportion and differences between City contributions and proportionate share of contributions (229) Changes in assumptions 10,057 Plan Fiduciary Net Position 9,166,303 (7,752,509) 16,918,811 - (28,285) 28,285 - Net Pension Liability (Asset) Balances as of January 1, 2022 103,855,478$ 111,933,120$ (8,077,642)$ Firefighters Plan 1,281,249 5,033 Net difference between projected and actual earnings on pension plan investments 52,460 At December 31, 2022, the City reported a net pension liability of $7,009,627 for the Police Plan and a net pension liability of $8,841,169 for the Firefighters Plan. - 794,024 (794,024) - (7,377,039) 7,377,039 6,555,038 703,071$ Total - 2,410,952 (2,410,952) Deferred Outflows of Resources 113,021,781$ - 2,231,006 115 Total that will be recognized in pension expense (income) based on the table below 3,584,970$ Pension contributions subsequent to measurement date 104,180,611$ 229 (3,399,704) - 2,991,023 8,879,837 703,071 552,797 - - Increase (Decrease) Total Pension Liability - 2,873,159 - - - - 3,278,380 - - - 5,033 - - 6,555,038 72,838 10,161,086$ 3,278,380 81 Firefighters Pension Plan Report and Fiduciary Net Position: G. Other Post-Employment Benefits Single-Employer Defined Benefit Healthcare Plan Plan Description 917,540 4,182,104 1,214,309 1,163,025 916,784 1,500,909 877,922 Thereafter 1,181,074 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). 10,355,945$ The Carmel Postretirement Benefit 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. 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. 721,368 125,692 4,521,685$ The Plan is allocated between governmental and business-type activities based on the percentage of total personal services expenditures during the City's fiscal year ended December 31. 3,772,545 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 (844) GO-INPRS, by emailing questions@inprs.in.gov, or by visiting www.in.gov/inprs. Year Ending December 31, 1,591,045 Total Total that will be recognized in pension expense (income) based on the table below Differences between expected and actual experience 2026 2025 2027 3,309,844 2024 877,922$ 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. Differences between expected and actual experience and changes in assumptions are 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: Police Amount 1,538,017 123,372$ Deferred Inflows of Resources 2023 Pension contributions subsequent to measurement date 2,813,945 Fire Amount Deferred Outflows of Resources 8,176,766$ - Changes in assumptions - 697,237 Net difference between projected and actual earnings on pension plan investments Changes in proportion and differences between City contributions and proportionate share of contributions 11,233,867 57,313 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. 12,824,912$ Contributions subsequent to the June 30, 2022, measurement date of the net pension liability, but before the end of the employer's reporting period, are recognized as a reduction of the net pension liability in the subsequent fiscal period rather than in the current fiscal period. 833,387$ 1,054,350$ 82 Employees Covered By Benefit Terms At December 31, 2022, the following members were projected to be 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 Total Total OPEB Liability Changes in the Total OPEB Liability: Balances at January 1, 2022 Changes for the Year Service Cost Interest Changes in Plan Provisions Difference between Expected and Actual Experience Changes in Assumptions Total OPEB Net Changes Balances at December 31, 2022 (2,675,315) 625,309 Net Benefits Paid by Employer 210,816 Under this method, actuarial gains (losses), as they occur, reduce (increase) the Total OPEB Liability and are explicitly identified and amortized in the annual expense. (1,699,013) (1,030,964) Under this method, as used in the December 31, 2022, 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. 25,436,805$ Coverage ends for the retiree at the retiree's Medicare eligibility date. - 1,171,141 For the year ended December 31, 2022, the City contributed $1,030,964 to the Plan for current premiums. The Plan is funded on a pay-as-you-go basis. No irrevocable trust has been established to fund the Plan. Accordingly, no trust fund financial statements are published. The Plan issues no separate reports. - Liability Increases (decreases) in liabilities due to benefit changes, actuarial assumption changes and/or actuarial method changes are also explicitly identified and amortized in the annual expense. 27,135,818$ 458 The Entry Age Normal Actuarial Cost Method used in the current OPEB actuarial valuation is unchanged from the prior OPEB actuarial The committed fund balance of the Health Self Insurance Fund includes $319,554 to cover future claims of the OPEB plan. The commitment is not irrevocable, and the underlying assets are not legally protected from the creditors of the City. Total OPEB 398 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. 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. 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 $10,800 per year). Retiree contributions for a married couple that works for the City are based on service of the individual employed for the longer period of time (not to exceed 75% of the total premium). The City contributes 100% of the premium for medical and dental coverage for those who are killed in the line of duty with no maximum contribution. The City pays 50% for work-related disabilities. All other retirees pay 100% of the premium rate. 60 83 Sensitivity of the Total OPEB Obligation to Changes in the Discount Rate: Total OPEB Liability Sensitivity of the Total OPEB Obligation to Changes in the Healthcare Cost Trend Rate: Total OPEB Liability OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Liability Experience Losses / (Gains) Changes in Assumptions Measurement Date December 31, 2022 Valuation Date December 31, 2022 Cosst method Entry Age Normal (Level % of Pay) Total (2,077,714) (955,252)$ (955,252) Actuarial Methods and Assumptions 1% Increase Thereafter 2027 27,567,820$ 2023 23,592,823$ (955,252) Deferred Inflows of Resources 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. The following presents the total OPEB liability of the Employer, as well as what the Employer's total OPEB liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage-point higher than the current discount rate: 2,565,564$ For the year ended December 31, 2022, the City recognized OPEB expense of $841,198. OPEB expense represents the change in the total OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, and actuarial assumptions or method. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: 2024 2025 (6,853,974)$ The following presents the total OPEB liability of the Employer, as well as what the Employer's total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1-percentage point lower or 1-percentage-point higher than the current healthcare cost trend rates: Benefit-related costs are based on an established pattern of practice. 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. Year Ending December 31, (955,252) (955,252) 2026 Current Rate 6,148,912$ 25,436,805$ Amount 9,419,538$ 1% Decrease At December 31, the deferred outflows / (inflows) of resources based on obligations for the Plan are as follows: 2,379,522 3,270,626 186,042$ Deferred Outflows of Resources 1% Decrease Current Rate 1% Increase 27,699,950$ 25,436,805$ 23,391,069$ 84 Economic Assumptions Discount rate Discount rate basis Coverage rate Spouses Disability Mortality: Civilian employees Police and fire employees Mortality improvement Turnover According to Sarason Table T-1. Retirement Rates: Civilian employees: Police and fire employees: Rate 100% 55-60 61-64 Female 20% 16% 7.5% Male 65+100.0% SOA published mortality improvement scale: MP-2021 (MP-2019 at December 31, 2019) generational, which projects mortality improvement indefinitely beyond the 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. None assumed. 2% SOA published mortality table: Pub-2010 Safety Employees amount weighted mortality table. Separate tables for males and female participants. Separate tables for active employees, healthy annuitants, contingent survivors, and disabled participants. 14% 2.5% 26% 65 30.0% 52-54 25% 22% Age 5% 35% 100%61 62 32% 90% of eligible employees are assumed to be covered in the plan at retirement. *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. 2.25% per annum as of December 31, 2021 Age 50-53 Female 5% 12% 19% 40% 8% 17% 4.31% per annum as of December 31, 2022 20%3% Male S&P Municipal Bond 20-Year High Grade Rate Index* 17% 68 69 Retired participants: Age and marital status based on actual census data. 3.30% per annum as of December 31, 2020 64 19% SOA published mortality table: Pub-2010 General Employees amount weighted mortality table. Separate tables for males and female participants. Separate tables for active employees, healthy annuitants, contingent survivors, and disabled participants. 4% 22.5% 56 57 66 58 60 45-51 19% 14% Active participants: 35% are assumed to cover a spouse, with male spouses two years older than female spouses. 59 54 70-74 4% 75+ 30% 24% 30% 63 4% 21% 5% Age 67 2% 55 2% 4% 5% 3% 7% 85 Per capita claims cost: Age Age 55-59 All Ages 60-64 Age Age 55-59 All Ages 60-64 Annual Healthcare Trend Year Medical Dental Year Medical Dental 1 7 2 8 3 9 4 10 5 11 6 12 13+ H. Schedule of Aggregate Amounts – Single-employer and Cost Sharing Multiple-employer Defined Benefit Pension Plans Total pension liability Plan net position Net pension liability Deferred outflows of resources Deferred inflows of resources Pension expense Total pension liability Plan net position Net pension liability Deferred outflows of resources Deferred inflows of resources Pension expense 83,901,026$ 322$ 6,541,544$ 611,713$ 260,369$ 148,996$ 241,442$ 138,607 15,850,796$ 15,353$ 2,003,822$ City Plan 12,404,875$ -$ 4.5% Officer's Pension 5.0%4.5% Water Utility 186,779,107 Public Employees' 9,680,820$ 9,704,787$ 304,563,987$ 52,284,969$ 8,142,485$ 309,381$ 202,629,903$ 10,231,645 7,984,822 43,125,085 2,173,229$ 1,695,998$ 9,159,884$ 986,030$ 769,502$ 83,385$ 630,019$ 450,357$ 16,098$ 1,325,667$ *Additional detail provided below. The Public Employees' Retirement Fund is first classified by INPRS by (1) Parks employees (Parks) and (2) all other Civilian employees of the City (City). The City plan is then allocated between governmental and business-type activities based on the percentage of total civilian (non- uniformed) PERF expenditures during the City's fiscal year ended December 31. 83,901,026$ 69,202,276 14,698,750$ 6,541,544$ 4,155,993$ 900,960$ 1,304,003$ 2021/2022 Dental 5.3% 1977 Police Officers' and Firefighters' Pension and Disability 7.5% 4.5% 746$ 17,816$ Female Sewer Utility Total 4,397 69,202,276 256,124,386 4.5% Public Employees' 900,960$ 14,698,750$ Retirement Total 9,530,362$ 1,669,639$ 106,849$ -$ Male 4.5% 1937 Firefighters' City- All OtherParks 7,860,723 22,985,998$ 8,185,266$ 2,003,822$ 1,580,993$ 4,201,283$ 7.8% Retirement* 16,991$ 13,104$ 4.5% 6.8% 6.5% Pension 8.0% 5.8%7.3% 704$ Female 2019/2020 Medical & Vision Male 29,533,088$ 2,481,953$ 5,224$ 4.5% Varies by age and status; representative rates follow: 704$ Male 4.5% 48,439,600$ 8,323,874$ 4.5% Male 2021/2022 Medical & Vision 6.5% 13,247$ 5.5%4.5% 6.3% 6.0%4.5% Female Female 1925 Police 4.5% 9,709,184$ 13,890$ 13,740$ 4.5% 2019/2020 Dental 746$ 86 I. Deferred Compensation Plan J. Interfund Receivables and Payables The composition of the interfund balances as of December 31, 2022 is as follows: Due to/from other funds Receivable Fund Payable Fund Motor Vehicle Highway Fund Storm Water Fund Total among governmental funds Water Enterprise Fund Sewer Enterprise Fund Sewer Enterprise Fund Water Enterprise Fund Total among proprietary funds Storm Water Fund Water Enterprise Fund Total among governmental and proprietary funds The Sewer Utility recognizes a long-term liability due to the Water Utility for its share of the Water Utility's 2020 revenue bond. K. Reclassification Funds treated as major in the prior year were reclassified as nonmajor for the year ended December 31, 2022: Reclassification from major to nonmajor funds for 2022: Bond Bank Project Fund 198,362,526$ 241,853,379$ 43,490,853$ 241,853,379$ The City offers its employees certain deferred compensation plans established in accordance with Internal Revenue Code Sections 401(a) and 457(b). The plans are available to all City employees and permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death or unforeseeable emergency. All assets of the plans are, until paid or made available to the employee or other beneficiary, held in trust and are not subject to claims of the City's general creditors. Therefore, the assets of the plans are not reported. The City's liability to each participant is equal to the participant's deferred compensation, adjusted by an amount equal to the investment performance in the related asset account. The City has no liability for losses under the plans but does have the duty of due care that would be required of an ordinary prudent investor. Investments are managed by a trustee and investment decisions are made by individual employees. (12,276,350) 12,276,350 Total fund balances of nonmajor funds as previously reported at December 31, 2021 Total fund balances as of January 1, 2022 55,767,203$ Major Nonmajor Governmental 186,086,176$ Amount 806,456 Water Utility invoices include charges for Sewer and Storm Water, and these charges are remitted as collected, one month in arrears. - Total 69,390$ 661,555$ 1,468,011$ The Motor Vehicle Highway Fund is due $69,390 from the Storm Water Fund to comply with an ordinance requiring certain transfers. 69,390$ 351,310$ 351,310$ 87 2022 2021 2020 2019 2018 2017 Total OPEB Liability Service Cost 1,171,141$ 1,415,051$ 1,831,489$ 1,420,618$ 1,519,286$ 1,330,012$ Interest Cost 625,309 1,012,016 994,250 1,002,886 861,028 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 210,816 (6,005,917) (930,479) (107,011) (787,315) (418,473) Changes in Assumptions (2,675,315) 1,983,945 - 1,205,476 (676,338) (1,046,528) (1,030,964) (973,405) (906,212) (884,567) (539,334) (413,786) Net Changes in Total OPEB Liability (1,699,013) (2,568,310) 989,048 2,637,402 377,327 481,204 Total OPEB Liability - Beginning 27,135,818 29,704,128 28,715,080 26,077,678 25,700,351 25,219,147 Total OPEB Liability - Ending 25,436,805 27,135,818 29,704,128 28,715,080 26,077,678 25,700,351 REQUIRED SUPPLEMENTARY INFORMATION City of Carmel, Indiana Current Period Recognition of Deferred Outflows / (Inflows) of Resources: Benefit Payments For the Fiscal Year Ended December 31, 2022 SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED RATIOS 88 2022 2021 2020 2019 2018 2017 Total OPEB Liability - Ending 25,436,805$ 27,135,818$ 29,704,128$ 28,715,080$ 26,077,678$ 25,700,351$ Covered-Employee Payroll 39,161,042$ 35,069,203$ 45,468,975$ 44,359,976$ 38,986,588$ 38,047,090$ Total OPEB Liability as a Percentage of Covered-Employee Payroll 64.95% 77.38% 65.33% 64.73% 66.89% 67.55% The most recent actuarial valuation date is December 31, 2022. Additional information on the City's OPEB can be found in Note II.G. on pages 82–86 of this report. The City implemented GASB 75 in 2017. 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. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB 75, to pay related benefits for the OPEB plan. City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF TOTAL OPEB LIABILITY For the Fiscal Year Ended December 31, 2022 Notes to Schedule: 89 SUMMARY OF MAIN PLAN PROVISIONS METHOD AND ASSUMPTIONS Entry Age Normal (Level % of Pay) ASSUMPTIONS: Discount Rate 4.31% per annum as of December 31, 2022 2.25% per annum as of December 31, 2021 3.30% per annum as of December 31, 2020 OTHER POST-EMPLOYMENT BENEFIT PLAN December 31, 2022 The plan is a PPO plan providing comprehensive major medical benefits to eligible retirees, their spouses, and dependents. Monthly Premiums 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. 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. COST METHOD (Prescribed) 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. Employees hired or disabled on or after October 3, 2016 are not eligible (except for those killed or disabled in the line of duty). 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 rate. City of Carmel, Indiana NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 90 Discount Rate Basis S&P Municipal Bond 20-Year High Grade Rate Index* Coverage Rate 90% of eligible employees are assumed to be covered in the plan at retirement. Spouses Retired participants: Age and marital status based on actual census data. Active participants: 35% are assumed to cover a spouse, with male spouses two years older than female spouses. Disability None assumed. Mortality: Civilian Employees Police and Fire Employees Mortality Improvement Turnover According to Sarason Table T-1. Healthcare Cost Trend Rates SOA published mortality table: Pub-2010 Safety Employees amount weighted mortality table. Separate tables for males and female participants. Separate tables for active employees, healthy annuitants, contingent survivors, and disabled participants. SOA published mortality improvement scale: MP-2021 (MP-2019 at December 31, 2019) generational, which projects mortality improvement indefinitely beyond the 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. Medical costs were trended at 8.0% in the first year, graded down to 5.75% over 10 years; dental costs were trended at a flat 4.5% per year. SOA published mortality table: Pub-2010 General Employees amount weighted mortality table. Separate tables for males and female participants. Separate tables for active employees, healthy annuitants, contingent survivors, and disabled participants. 91 1925 Police Officers' Pension Plan:2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 612,374$ 579,819$ 607,355$ 564,928$ 564,928$ 557,208$ 546,748$ 534,143$ 612,374 579,819 607,355 564,928 564,928 557,208 546,748 534,143 Contribution deficiency (excess)- - - - - - - - Covered payroll -$ -$ -$ -$ -$ -$ -$ -$ Contributions as a percentage of covered payroll Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 1937 Firefighters' Pension Plan:2022 2021 2020 2019 2018 2017 2016 2015 Actuarially determined contribution 597,247$ 598,830$ 565,704$ 584,282$ 584,282$ 577,369$ 553,519$ 562,264$ 597,247 598,830 565,704 584,282 584,282 577,369 553,519 562,264 Contribution deficiency (excess)- - - - - - - - Covered payroll -$ -$ -$ -$ -$ -$ -$ -$ Contributions as a percentage of covered payroll Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans. City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF EMPLOYER CONTRIBUTIONS December 31, 2022 Contributions in relation to the actuarially determined contribution Contributions in relation to the actuarially determined contribution 92 1925 Police Officers' Pension Plan:2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability 8,323,874$ 8,318,027$ 8,616,378$ 9,650,494$ 9,893,565$ 10,119,548$ 10,119,548$ 10,179,012$ Less, fiduciary net position 138,608 130,048 136,916 145,316 131,361 147,471 148,470 147,785 Net pension liability 8,185,266$ 8,187,979$ 8,479,462$ 9,505,178$ 9,762,204$ 9,972,077$ 9,971,078$ 10,031,227$ 1.67%1.56%1.59%1.51%1.33%1.46%1.47%1.45% Covered payroll -$ -$ -$ -$ -$ -$ -$ -$ Net position as a percentage of covered payroll Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable 1937 Firefighters' Pension Plan:2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability 9,709,184$ 8,997,143$ 9,278,530$ 10,366,629$ 10,601,151$ 10,883,369$ 10,883,369$ 10,997,707$ Less, fiduciary net position 4,397 20,207 14,354 36,220 5,405 26,027 30,375 39,365 Net pension liability 9,704,787$ 8,976,936$ 9,264,176$ 10,330,409$ 10,595,746$ 10,857,342$ 10,852,994$ 10,958,342$ 0.05%0.22%0.15%0.35%0.05%0.24%0.28%0.36% Covered payroll -$ -$ -$ -$ -$ -$ -$ -$ Net position as a percentage of covered payroll Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans. City of Carmel, Indiana SCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOS December 31, 2022 Fiduciary net position as a percentage of the total pension liability Fiduciary net position as a percentage of the total pension liability REQUIRED SUPPLEMENTARY INFORMATION 93 1925 Police Officers' Pension Plan:2022 2021 2020 2019 2018 2017 2016 2015 Total pension liability - beginning 8,318,027$ 8,616,378$ 9,650,494$ 9,893,565$ 10,119,548$ 10,119,548$ 10,179,012$ 10,220,740$ Interest on total pension liability 278,016 288,782 329,811 339,070 354,913 355,402 363,703 367,444 Effect of economic/demographic gains and losses 945,303 - (599,196) - 338,525 201,812 122,896 125,844 Effect of assumptions changes or inputs (609,973) - (148,471) - (337,280) - - - Benefit payments (607,499) (587,133) (616,260) (582,141) (582,141) (557,214) (546,063) (535,016) Total pension liability - ending 8,323,874 8,318,027 8,616,378 9,650,494 9,893,565 10,119,548 10,119,548 10,179,012 Fiduciary net position - beginning 130,048 136,916 145,316 131,361 147,471 148,470 147,785 148,615 Employer contributions 612,374 579,819 607,355 564,928 564,928 557,208 546,748 534,143 Net investment income 3,685 446 505 4,121 1,203 882 - 143 Benefit payments (607,499) (587,133) (616,260) (582,141) (582,141) (557,214) (546,063) (535,016) Administrative expenses - - - - (100) (1,875) - (100) Other - - - 27,047 - - - - Fiduciary net position - ending 138,607 130,048 136,916 145,316 131,361 147,471 148,470 147,785 Net pension liability - ending $ 8,185,267 $ 8,187,979 $ 8,479,462 $ 9,505,178 $ 9,762,204 $ 9,972,077 $ 9,971,078 $ 10,031,227 1937 Firefighters' Pension Plan:2022 2021 2021 2021 2018 2017 2016 2015 Total pension liability - beginning 8,997,143$ 9,278,530$ 10,366,629$ 10,601,151$ 10,883,369$ 10,883,369$ 10,997,707$ 11,028,789$ Interest on total pension liability 301,525 311,713 355,711 367,840 385,277 385,817 393,503 396,965 Effect of economic/demographic gains and losses 1,903,685 - (699,325) - 289,272 192,103 54,668 125,812 Effect of assumptions changes or inputs (879,089) - (156,836) - (351,553) - - - Benefit payments (614,080) (593,100) (587,649) (602,362) (605,214) (577,920) (562,509) (553,859) Total pension liability - ending 9,709,184 8,997,143 9,278,530 10,366,629 10,601,151 10,883,369 10,883,369 10,997,707 Fiduciary net position - beginning 20,207 14,354 36,220 5,405 26,027 30,375 39,365 30,909 Employer contributions 597,247 598,830 565,704 584,282 584,282 577,369 553,519 562,264 Net investment income 1,023 123 79 847 310 224 - 51 Benefit payments (614,080) (593,100) (587,649) (602,362) (605,214) (577,920) (562,509) (553,859) Administrative expenses - - - - - (4,021) - - Other - - - 48,048 - - - - Fiduciary net position - ending 4,396 20,207 14,354 36,220 5,405 26,027 30,375 39,365 Net pension liability - ending $ 9,704,788 $ 8,976,936 $ 9,264,176 $ 10,330,409 $ 10,595,746 $ 10,857,342 $ 10,852,994 $ 10,958,342 See notes to schedules, 1925 Police and 1937 Firefighters' Pension Plans. December 31, 2022 SCHEDULE OF CHANGES IN NET PENSION LIABILITY REQUIRED SUPPLEMENTARY INFORMATION City of Carmel, Indiana 94 Assumption changes: Discount Rate:4.31% Police Officers; 4.31% Firefighters for 2022 Valuation date: Methods and assumptions used to determine most current contribution rate: Actuarial cost method Entry Age Normal Amortization method N/A Remaining amortization period N/A Retirement age N/A Mortality 2023 Static Combined Table for Small Plans as publiched in IRS Notice 2022-22 Other information N/A REQUIRED SUPPLEMENTARY INFORMATION Note: The City is presenting its eighth ACFR 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. Actuarially determined contribution rates are calculated as of December 31 of the fiscal year in which contributions are reported. Effective with the December 31, 2022 measurement date, the future mortality improvement assumption was updated to the 2023 Static Combined Table for Small Plans as published in IRS Notice 2022-22. City of Carmel, Indiana NOTES TO SCHEDULES 1925 POLICE OFFICERS' AND 1937 FIREFIGHTERS' PENSION PLANS December 31, 2022 95 Public Employees' Retirement Fund: Year Ended City's Proportion of the Net Pension Liability City's Proportionate Share of the Net Pension Liability City's Covered Payroll Net Pension Liability as a Percentage of Covered Payroll Plan Fiduciary Net Position as a Percentage of Total Pension Liability City: June 30, 2022 0.0041312 13,029,111$ 23,776,000$ 54.8%82.5% June 30, 2021 0.0041368 5,443,399$ 22,808,056$ 23.9%92.5% June 30, 2020 0.0041028 12,392,074$ 22,149,413$ 55.9%81.5% June 30, 2019 0.0040206 13,288,339$ 20,947,877$ 63.4%80.1% June 30, 2018 0.0039301 13,350,728$ 20,053,519$ 66.6%78.9% June 30, 2017 0.0034924 15,581,494$ 17,326,450$ 89.9%76.7% June 30, 2016 0.0035353 16,044,763$ 16,943,306$ 94.7%75.4% June 30, 2015 0.0034106 13,891,040$ 16,335,991$ 85.0%77.4% Parks: June 30, 2022 0.0005294 1,669,639$ 3,046,724$ 54.8%82.5% June 30, 2021 0.0005979 786,745$ 3,296,397$ 23.9%92.5% June 30, 2020 0.0006229 1,881,404$ 3,362,676$ 55.9%81.5% June 30, 2019 0.0006321 2,089,131$ 3,293,425$ 63.4%80.1% June 30, 2018 0.0006161 2,092,920$ 3,143,577$ 66.6%78.9% June 30, 2017 0.0006062 2,704,588$ 3,007,362$ 89.9%76.7% June 30, 2016 0.0006398 2,903,697$ 3,066,437$ 94.7%75.4% June 30, 2015 0.0006001 2,444,149$ 2,874,230$ 85.0%77.4% Continued on next page. City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS SCHEDULE OF THE CITY'S PROPORTIONATE SHARE December 31, 2022 OF THE NET PENSION LIABILITY 96 1977 Police Officers' and Firefighters' Pension and Disability Fund: Year Ended City's Proportion of the Net Pension Liability (Asset) City's Proportionate Share of the Net Pension Liability (Asset) City's Covered Payroll Net Pension Liability as a Percentage of Covered Payroll Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) Police: June 30, 2022 0.0108198 7,009,627$ 10,936,953$ 64.1%92.2% June 30, 2021 0.0106286 (6,281,665)$ 10,091,036$ -62.2%107.8% June 30, 2020 0.0102375 2,485,745$ 9,493,108$ 26.2%96.4% June 30, 2019 0.0101312 93,369$ 8,955,356$ 1.0%99.9% June 30, 2018 0.0102071 (897,318)$ 8,596,291$ -10.4%101.5% June 30, 2017 0.0094176 (145,270)$ 7,634,954$ -1.9%100.3% June 30, 2016 0.0101528 901,944$ 7,847,007$ 11.5%98.2% June 30, 2015 0.0101282 (1,496,139)$ 7,552,611$ -19.8%103.2% Fire: June 30, 2022 0.0136469 8,841,169$ 13,794,689$ 64.1%92.2% June 30, 2021 0.0136674 (8,077,642)$ 12,976,093$ -62.3%107.8% June 30, 2020 0.0128110 3,110,611$ 11,879,532$ 26.2%96.4% June 30, 2019 0.0129129 119,005$ 11,414,229$ 1.0%99.9% June 30, 2018 0.0135067 (1,187,390)$ 11,375,165$ -10.4%101.5% June 30, 2017 0.0126561 (195,225)$ 10,260,440$ -1.9%100.3% June 30, 2016 0.0135237 1,201,404$ 10,452,317$ 11.5%98.2% June 30, 2015 0.0137130 (2,025,686)$ 10,225,780$ -19.8%103.2% Source: INPRS Actuarial Valuations and Unaudited Employer-specific GASB 68 Schedules. The amounts presented for each year were determined as of the Plan's June 30 year-end that occurred within the City's fiscal year. December 31, 2022 (Continued) Note: The City is presenting its eighth ACFR 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. OF THE NET PENSION LIABILITY City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS SCHEDULE OF THE CITY'S PROPORTIONATE SHARE 97 Public Employees' Retirement Fund: Year Ended Contractually Required Contributions City Contributions related to the Contractually Required Contribution Deficiency (Excess) City's Covered Payroll Contributions as a Percentage of Covered Payroll City: December 31, 2022 3,582,578$ 3,582,578$ -$ 23,292,028$ 15.4% December 31, 2021 3,481,738$ 3,481,738$ -$ 22,478,735$ 15.5% December 31, 2020 3,497,604$ 3,497,604$ -$ 21,548,645$ 16.2% December 31, 2019 3,523,477$ 3,523,477$ -$ 20,500,698$ 17.2% December 31, 2018 3,308,652$ 3,308,652$ -$ 18,689,985$ 17.7% December 31, 2017 3,045,739$ 3,045,739$ -$ 17,134,878$ 17.8% December 31, 2016 2,916,463$ 2,916,463$ -$ 16,639,649$ 17.5% December 31, 2015 2,755,295$ 2,755,295$ -$ 15,944,994$ 17.3% Parks: December 31, 2022 289,370$ 289,370$ -$ 3,171,561$ 9.1% December 31, 2021 237,999$ 237,999$ -$ 3,329,537$ 7.1% December 31, 2020 344,090$ 344,090$ -$ 3,328,051$ 10.3% December 31, 2019 339,303$ 339,303$ -$ 3,218,501$ 10.5% December 31, 2018 307,209$ 307,209$ -$ 3,075,470$ 10.0% December 31, 2017 304,629$ 304,629$ -$ 3,036,900$ 10.0% December 31, 2016 291,429$ 291,429$ -$ 2,970,334$ 9.8% December 31, 2015 297,154$ 297,154$ -$ 3,113,889$ 9.5% 1977 Police Officers' and Firefighters' Pension and Disability Fund: Year Ended Contractually Required Contributions City Contributions related to the Contractually Required Contributions Contribution Deficiency (Excess) City's Covered Payroll Contributions as a Percentage of Covered Payroll Police: December 31, 2022 2,367,884$ 2,367,884$ -$ 10,513,995$ 22.5% December 31, 2021 2,197,128$ 2,197,128$ -$ 9,792,072$ 22.4% December 31, 2020 2,117,739$ 2,117,739$ -$ 9,224,232$ 23.0% December 31, 2019 1,920,734$ 1,920,734$ -$ 8,775,824$ 21.9% December 31, 2018 1,809,416$ 1,809,416$ -$ 8,115,623$ 22.3% December 31, 2017 1,713,532$ 1,713,532$ -$ 7,740,981$ 22.1% December 31, 2016 1,657,359$ 1,657,359$ -$ 7,699,809$ 21.5% December 31, 2015 1,607,669$ 1,607,669$ -$ 6,066,675$ 26.5% Fire: December 31, 2022 2,964,234$ 2,964,234$ -$ 13,385,391$ 22.1% December 31, 2021 2,787,164$ 2,787,164$ -$ 12,427,813$ 22.4% December 31, 2020 2,695,458$ 2,695,458$ -$ 11,646,881$ 23.1% December 31, 2019 2,424,965$ 2,424,965$ -$ 11,394,697$ 21.3% December 31, 2018 2,351,694$ 2,351,694$ -$ 10,817,803$ 21.7% December 31, 2017 2,350,371$ 2,350,371$ -$ 10,356,379$ 22.7% December 31, 2016 2,186,794$ 2,186,794$ -$ 10,339,049$ 21.2% December 31, 2015 2,185,238$ 2,185,238$ -$ 10,058,633$ 21.7% City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS SCHEDULE OF CITY CONTRIBUTIONS December 31, 2022 98 Changes in actuarial assumptions: Public Employees' Retirement Fund and 1977 Police Officers' and Firefighters' Pension and Disability Fund: Changes in actuarial methods: Public Employees' Retirement Fund and 1977 Police Officers' and Firefighters' Pension and Disability Fund: Changes in plan provisions: Public Employees' Retirement Fund and 1977 Police Officers' and Firefighters' Pension and Disability Fund: City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION NOTES TO SCHEDULES PUBLIC EMPLOYEES' RETIREMENT AND 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND DISABILITY FUNDS Note: Covered payroll for the purposes of this schedule was determined as of the City's fiscal year ended December 31. December 31, 2022 Note: The City is presenting its eighth ACFR 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. There were no changes in actuarial methods since the prior year. There were no changes in assumptions from the June 30, 2021 actuarial valuations to the June 30, 2022 actuarial valuations. The most significant factor in the liability experience was salaries increasing by more than expected. Several funds experienced new entrant and rehire losses, as well as retirement and termination experience losses. All funds had liability gains in their mortality experience, partially offsetting the liability losses. Note that data used in these valuations is based on census data as of June 30, 2021, and therefore includes experience for part of the COVID-19 pandemic. There were no changes to the plan provisions during the fiscal year. 99 Variance Actual With Final Budgetary Budget Basis Positive Original Final Amounts (Negative) REVENUES: Property tax 49,581,767$ 49,581,767$ 46,613,206$ (2,968,561)$ Income tax 45,735,219 45,735,219 52,730,393 6,995,174 Licenses and permits 2,871,807 2,871,807 - (2,871,807) Intergovernmental 266,478 266,478 610,900 344,422 Charges for services 4,145,603 4,145,603 1,462,510 (2,683,093) Fines and forfeits 439,110 439,110 224,910 (214,200) Miscellaneous - - 3,922,384 3,922,384 Other 15,472,007 14,841,758 13,939,050 (902,708) - Total revenues: budgetary basis 118,511,991$ 117,881,742$ 119,503,353 1,621,611$ Increase in available income tax receivable - Transfer in from enterprise funds treated as revenue on a budgetary basis (1,320,506) Transfer from a nonmajor fund treated as revenue on a budgetary basis (766,168) Total revenues reported on the Statement of Revenues and Expenditures 117,416,679$ EXPENDITURES: Current: General government: City Controller: Personal services 923,787$ 923,787$ 782,865$ (140,922)$ Supplies 14,511 14,511 7,360 (7,151) Other services and charges 249,055 249,055 161,832 (87,223) Capital outlay 15,404 15,404 8,527 (6,877) City Clerk: Personal services 761,570 761,570 644,242 (117,328) Supplies 14,400 14,400 7,059 (7,341) Other services and charges 182,527 182,527 45,975 (136,552) Capital outlay 50,000 50,000 13,611 (36,389) Mayor's Office:- Personal services 538,205 538,205 458,936 (79,269) Supplies 4,300 4,300 3,362 (938) Other services and charges 5,529,560 5,529,560 4,109,348 (1,420,212) Capital outlay 33,706 33,706 5,086 (28,620) City Council: Personal services 412,356 412,356 325,206 (87,150) Supplies 4,000 4,000 478 (3,522) Other services and charges 169,219 169,219 110,411 (58,808) Capital outlay 2,690 2,690 1,272 (1,418) City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND General Fund For the Fiscal Year Ended December 31, 2022 Budgeted Amounts Continued on next page. 100 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 22,531 22,531 15,527 (7,004) Debt service 16,783,877 16,783,877 16,781,828 (2,049) Administration: Personal services 1,156,960 1,156,960 1,138,558 (18,402) Supplies 76,914 76,914 53,307 (23,607) Other services and charges 2,705,078 2,705,078 2,062,103 (642,975) Capital outlay 610,823 610,823 525,241 (85,582) Brookshire Golf Course: Personal services 924,162 924,162 878,060 (46,102) Supplies 69,900 69,900 56,821 (13,079) Other services and charges 468,350 468,350 460,855 (7,495) Capital outlay 459,739 459,739 343,878 (115,861) Building Operations: Supplies 8,000 8,000 - (8,000) Other services and charges 3,840,603 3,840,603 3,525,268 (315,335) Capital outlay - - - - City Court: Personal services 630,950 630,950 533,404 (97,546) Supplies - - - - Other services and charges 184,200 184,200 126,419 (57,781) Capital outlay - - - - Law Department: Personal services 1,216,932 1,216,932 1,011,005 (205,927) Supplies 8,127 8,127 3,899 (4,228) Other services and charges 859,967 859,967 293,080 (566,887) Capital outlay 204,084 204,084 72,878 (131,206) Community Services: Personal services 3,042,650 3,042,650 2,881,084 (161,566) Supplies 62,072 62,072 48,885 (13,187) Other services and charges 1,728,901 1,743,828 1,033,661 (710,167) Capital outlay 677,902 677,902 433,246 (244,656) Personnel/ Human Resources:- Personal services 708,950 708,950 525,558 (183,392) Supplies 1,500 1,500 619 (881) Other services and charges 413,403 413,403 169,124 (244,279) Capital outlay 18,520 18,520 4,841 (13,679) For the Fiscal Year Ended December 31, 2022 (Continued) City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND Continued on next page. Budgeted Amounts 101 Variance Actual With Final Budgetary Budget Basis Positive Original Final Amounts (Negative) Expenditures (continued): Current (continued): Information Systems: Personal services - - - - Supplies - - - - Other services and charges - - - - Capital outlay - - - - City Property Maintenance: Supplies 236,588 236,588 134,895 (101,693) Other services and charges 1,815,915 1,815,915 1,463,937 (351,978) Public Affairs/ Community Relations: Personal services 1,311,075 1,311,075 1,069,287 (241,788) Supplies 4,362 4,362 2,664 (1,698) Other services and charges 3,705,158 3,711,158 2,649,579 (1,061,579) Capital outlay 55,037 55,037 21,391 (33,646) Total general government 52,918,520 52,939,447 45,006,472 (7,932,975) Public Safety: Fire Department: Personal services 28,390,904 28,685,040 28,981,402 296,362 Supplies 421,806 421,806 428,500 6,694 Other services and charges 2,403,114 2,403,114 1,844,754 (558,360) Police Department: Personal services 25,254,100 25,285,952 22,603,087 (2,682,865) Supplies 678,018 843,018 677,471 (165,547) Other services and charges 1,660,030 1,756,030 1,394,828 (361,202) Capital outlay 2,620,681 3,524,870 1,529,122 (1,995,748) Communication Center: Personal services 2,473,490 2,473,490 2,147,823 (325,667) Supplies 56,130 56,130 51,958 (4,172) Other services and charges 2,454,051 2,454,051 1,713,517 (740,534) Capital outlay 973,395 973,395 747,405 (225,990) Total public safety 67,385,719 68,876,896 62,119,867 (6,757,029) (Continued) Continued on next page. Budgeted Amounts REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND For the Fiscal Year Ended December 31, 2022 City of Carmel, Indiana 102 Variance Actual With Final Budgetary Budget Basis Positive Original Final Amounts (Negative) Expenditures (continued): Current (continued): Culture and recreation: Parks Department: Personal services 3,161,827 3,161,827 2,847,076 (314,751) Supplies 179,559 179,559 160,757 (18,802) Other services and charges 1,710,870 1,710,870 1,101,663 (609,207) Capital outlay 7,307 7,307 3,676 (3,631) Total culture and recreation 5,059,563 5,059,563 4,113,172 (946,391) Economic Development: Redevelopment Department: Personal services 741,053 741,053 726,211 (14,842) Supplies 3,700 3,700 3,825 125 Other services and charges 79,970 79,970 88,895 8,925 Capital outlay 9,435 9,435 5,129 (4,306) Total economic development 834,158 834,158 824,060 (10,098) Transfers to nonmajor funds - - 330,000 330,000 Other Expenditure - - 988,601 988,601 Total expenditures, budgetary basis 126,197,960$ 127,710,064$ 113,382,172 (14,327,892)$ Increase in accrued liabilities: Accounts payable 124,224 Accrued payroll and withholdings payable 297,879 Financed purchase obligations 1,969,822 Transfers to other funds (16,328,421) Rainy Day Fund Less, accrual due to Rainy Day Fund - Total expenditures reported on the Statement of Revenues and Expenditures 100,655,297$ treated as expenditures on a budgetary basis Budgeted Amounts For the Fiscal Year Ended December 31, 2022 (Continued) City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND 103 City of Carmel, Indiana NOTES TO REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES December 31, 2022 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, 2004 Road Bond Fund, and 2016 Property Tax Bond Fund. The original budget is the first complete appropriated budget for the year. The deadline for the adoption of annual budgets 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. Original budgeted revenues represent the budgeted revenues submitted by the City along with budget expenditures, as adopted. The final budget reflects official changes to those numbers. 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. 104 City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS - INFORMATION 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 to 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 fees 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 Storm Water Fund accounts for monies received for user charges restricted for drainage projects. The 4CDC Operating Fund accounts for the rental and maintenance operations of the 4CDC office building. The CMCDC Operating Fund accounts for revenue borrowed or otherwise set aside for certain economic development purposes. 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 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. Continued on next page. 105 City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS (Continued) The Opioid Settlement Fund accounts for the City's portion of Indiana's settlement of the national opioid litigation. The Health Self Insurance Fund accounts for the City's employee healthcare self-insurance program. The Workers Compensation Fund accounts for the City's workers' compensation programs. The Support for the Arts Fund accounts for donations and grants received to be spent on arts programs and engagement. The Keystone Non-Reverting Fund accounts for amounts accumulated for certain infrastructure projects. The Bicycle Facilities Non-Reverting Fund accounts for amounts accumulated for the operation and maintenance of City bicycle facilities and amenities. The Center Green Ice Non-Reverting Fund accounts for monies received and expended for the operation and maintenance of the ice rink located at the Palladium Center Green. Events & Festival Non-Reverting Fund accounts for amounts accumulated for certain recreation projects relating to City festivals and other community events. The Code Enforcement Non-Reverting Fund accounts for monies received and expended for City code enforcement The Sidewalk Non-Reverting Fund accounts for monies received and expended for City sidewalk improvements. The Urban Forestry Fund accounts for amounts accumulated 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 Defender 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 Historic Preservation Fund accounts for amounts accumulated to protect and to promote the educational, cultural and general welfare of the citizens of the City and to ensure the harmonious and orderly growth and development of the City. The Fire Gift Fund accounts for donations received for fire department expenditures. The Police Gift Fund accounts for donations received for police department expenditures. Continued on next page. 106 City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS (Continued) 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 Redevelopment Commission Gift Fund accounts for donations received for the redevelopment commission. 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 COVID Fund accounts for relief monies received for navigating the impact of the COVID-19 pandemic. 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. 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. Capital Projects Funds - used to account for revenues and other financing sources restricted or committed to the acquisition of capital assets: The Redevelopment Authority Capital Projects Fund is used to account for capital projects undertaken by the City with financing provided by the Authority. The Ambulance Fund accounts for EMS service fees, committed for acquisition of EMS and fire protection equipment. The Parks 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. Continued on next page. 107 City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS (Continued) 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 Old Town/126th Street Construction Fund accounts for the accumulation of resources for certain community improvement projects. The 2016 Property Tax Bond Construction Funds 1, 3, 4, and 13 account for the proceeds of eleven separate street projects financed by property tax, issued for the purpose of street improvement and construction. 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 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. The 2018 CMBC Bond Construction Fund is a capital projects fund that accounts for the proceeds of a bond expected to be paid from tax increment revenue. 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. The 2021 L/R Property Tax Bond Fund is a debt service fund that accounts for a tax levy to fund debt service for property-tax supported debt. 108 City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street ASSETS: Cash and cash equivalents 2,800,155$ $ 40,283 $ 2,560,554 3,803,785$ 234,474$ 2,238,845$ Property tax receivable - - - - - - Due from other governmental funds - - - - - - Due from related utility - - - - - - Intergovernmental receivables - - - - - - Lease and other receivable - - - - - - Total assets 2,800,155 40,283 2,560,554 3,803,785 234,474 2,238,845 LIABILITIES: Accounts payable 5,624 - 52,534 161,086 6,704 40,043 Claims payable - - - - - - Due to other funds - - - - - - Unearned Revenue - - - - - - Accrued payroll - - 49,801 52,981 - - Total liabilities 5,624 - 102,335 214,067 6,704 40,043 DEFERRED INFLOW OF RESOURCES: Leases - - - - - - Unavailable revenue - - - - - - Total deferred inflow of resources - - - - - - FUND BALANCE: Restricted: General government - - - - - - Public safety - 40,283 - - - - Highways and streets - - - - - 2,198,802 Drainage and other capital assets - - - - - - Economic development - - - - - - Culture and recreation 2,794,531 - 2,458,219 3,589,718 227,770 - Committed: General government - - - - - - Public safety - - - - - - Highways and streets - - - - - - Drainage - - - - - - Economic development - - - - - - Culture and recreation - - - - - - Assigned - - - - - - Unassigned - - - - - - TOTAL FUND BALANCES 2,794,531 40,283 2,458,219 3,589,718 227,770 2,198,802 TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 2,800,155$ 40,283$ 2,560,554$ 3,803,785$ 234,474$ 2,238,845$ Continued on next page. Special Revenue Funds December 31, 2022 109 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Deferral User Fee Barrett Law Barrett Law Surplus Storm Water 4CDC Operating Fund CMCDC Operating Fund 162,435$ 413,968$ 6$ $ 166,369 $ 6,257,668 $ 390,064 $ 168,544 - - - - - - - - - - - - - - - - - - 351,310 - - - - - - - - - - - - - - 8,438,899 - 162,435 413,968 6 166,369 6,608,978 8,828,963 168,544 - 359 - - 8,435 - - - - - - - - - - - - - 69,390 - - - - - - - - - 795 - - - - - - 795 359 - - 77,825 - - - - - - - 8,438,899 - - - - - - 93,361 - - - - - - 8,532,260 - - - - - - - - 161,640 413,609 - - - - - - - - - - - - - - 6 166,369 6,531,153 - - - - - - - 157,048 168,544 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 139,655 - - - - - - - - - - - - - - - - - - - - 161,640 413,609 6 166,369 6,531,153 296,703 168,544 162,435$ 413,968$ 6$ 166,369$ 6,608,978$ 8,828,963$ 168,544$ Continued on next page. Special Revenue Funds December 31, 2022 110 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Motor Vehicle Highway Fund MIHP Opioid Settlement Health Self Insurance Workers Comp Support for the Arts 4,247,508$ 6,801$ 197,380$ 2,579,551$ 151,355$ 19,134$ 396,567 - - - - - 69,390 - - - - - - - - - - - - - - - - - - - - - - - 4,713,465 6,801 197,380 2,579,551 151,355 19,134 657,610 - - 85,902 - - - - - 1,480,423 - - - - - - - - - - - - - - 221,980 - - - - - 879,590 - - 1,566,325 - - - - - - - - 396,567 - - - - - 396,567 - - - - - - - - - - - - 6,801 197,380 - - - 3,437,308 - - - - - - - - - - - - - - - - - - - - - - - - - - 1,013,226 151,355 - - - - - - - - - - - - - - - - - - - - - - - - 19,134 - - - - - - - - - - - - - - - - - - 3,437,308 6,801 197,380 1,013,226 151,355 19,134 4,713,465$ 6,801$ 197,380$ 2,579,551$ 151,355$ 19,134$ Continued on next page. December 31, 2022 Special Revenue Funds 111 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Keystone Non- Reverting Bicycle Facilities Non- Reverting Center Green Ice Non- Reverting Events & Festival Non- Reverting Code Enforcement Non- Reverting Sidewalk Non- Reverting 141,581$ 51,680$ 631,346$ 56,284$ 52,201$ 55,929$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 141,581 51,680 631,346 56,284 52,201 55,929 - - 65,673 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65,673 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 141,581 51,680 - - 52,201 55,929 - - - - - - - - - - - - - - 565,673 56,284 - - - - - - - - - - - - - - 141,581 51,680 565,673 56,284 52,201 55,929 141,581$ 51,680$ 631,346$ 56,284$ 52,201$ 55,929$ Continued on next page. Special Revenue Funds December 31, 2022 112 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Urban Forestry Clerk's Record Perpetuation Court Interpreter Public Defender Judicial Salary Fees Historic Preservation Fund Fire Gift 74,759$ 288,643$ 82$ 2,990$ 94,721$ 278,392$ 15,885$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 74,759 288,643 82 2,990 94,721 278,392 15,885 - 589 - - 1,401 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 589 - - 1,401 - - - - - - - - - - - - - - - - - - - - - - - - 288,054 - - - - - - - 82 2,990 93,320 - 15,885 - - - - - - - - - - - - - - - - - - - - - 74,759 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 278,392 - - - - - - - - - - - - - - - - - 74,759 288,054 82 2,990 93,320 278,392 15,885 74,759$ 288,643$ 82$ 2,990$ 94,721$ 278,392$ 15,885$ Continued on next page. Special Revenue Funds December 31, 2022 113 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Police Gift Parks Gift Community Relations Gift Redevelopment Commission Gift Economic Development Housing Authority 154,963$ 129,599$ 193,416$ 42,541$ 73,565$ 58,865$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 154,963 129,599 193,416 42,541 73,565 58,865 - 10,685 4,264 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10,685 4,264 - - - - - - - - - - - - - - - - - - - - - - - 189,152 42,541 - - 154,963 - - - - - - - - - - - - - - - - - - - - - 73,565 58,865 - 118,914 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 154,963 118,914 189,152 42,541 73,565 58,865 154,963$ 129,599$ 193,416$ 42,541$ 73,565$ 58,865$ Continued on next page. Special Revenue Funds December 31, 2022 114 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Drug Task Force Thoroughfare COVID Fund Grant Bond Bank Project Fund Total Special Revenue Funds 384,126$ 1,887,057$ 2,067,289$ 789,878$ 9,386,908$ 43,351,579$ - - - - - 396,567 - - - - - 69,390 - - - - - 351,310 - - - - - - - - - - - 8,438,899 384,126 1,887,057 2,067,289 789,878 9,386,908 52,607,745 10,792 - - - - 1,111,701 - - - - - 1,480,423 - - - - - 69,390 - - 1,917,965 - - 1,917,965 - - - - - 325,557 10,792 - 1,917,965 - - 4,905,036 - - - - - 8,438,899 - - - - - 489,928 - - - - - 8,928,827 - - 149,324 - - 669,071 373,334 - - 789,878 - 2,250,165 - 1,887,057 - - 9,386,908 16,910,075 - - - - - 6,697,528 - - - - - 458,022 - - - - - 9,263,911 - - - - - - 1,164,581 - - - - - - - - - - - 301,391 - - - - - - - - - - - 158,789 - - - - - 900,349 - - - - - - - - - - - - - - 373,334 1,887,057 149,324 789,878 9,386,908 38,773,882 384,126$ 1,887,057$ 2,067,289$ 789,878$ 9,386,908$ 52,607,745$ Continued on next page. Special Revenue Funds December 31, 2022 115 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Redevelopment Authority Capital Projects Fund Ambulance Parks Capital Cumulative Capital Improvement Cumulative Capital Sewer 83,956$ 3,240,631$ 465,941$ 190,664$ $ 9,651 - - - - - - - - - - - - - - - - - - - - - 153,242 - - - 83,956 3,393,873 465,941 190,664 9,651 - 11,566 1,600 35,310 - - - - - - - - - - - - - - - - - - - - - - 11,566 1,600 35,310 - - - - - - - 127,702 - - - - 127,702 - - - - - - - - - - - - 83,956 - - - - - - - - 9,651 - - - - - - 464,341 - - - - - - - - 3,254,605 - - - - - - 155,354 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 83,956 3,254,605 464,341 155,354 9,651 83,956$ 3,393,873$ 465,941$ 190,664$ 9,651$ Continued on next page. December 31, 2022 Capital Projects Funds 116 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Cumulative Capital Development Old Town/126th Construction 2016 Property Tax Bond Construction 1 2016 Property Tax Bond Construction 3 2016 Property Tax Bond Construction 4 $ 660 459$ -$ 6,902$ -$ 146,876 - - - - - - - - - - - - - - - - - - - - - - - - 147,536 459 - 6,902 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 146,876 - - - - 146,876 - - - - - - - - - - - - - - 660 - - 6,902 - - - - - - - 459 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 660 459 - 6,902 - 147,536$ 459$ -$ 6,902$ -$ Continued on next page. December 31, 2022 Capital Projects Funds 117 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) 2016 Property Tax Bond Construction 13 2016 Project Fund 2017 Project Fund 2018 CMBC Bond Construction Fund Total Capital Projects Funds -$ 422,398$ 3,362,606$ 469,544$ 8,253,412$ - - - - 146,876 - - - - - - - - - - - - - - - - - - - 153,242 - 422,398 3,362,606 469,544 8,553,530 - - - - 48,476 - - - - - - - - - - - - - - - - - - - - - - - - 48,476 - - - - - - - - - 274,578 - - - - 274,578 - - - - - - - - - - - 422,398 3,323,783 - 3,837,699 - - - - 9,651 - - 38,823 469,544 508,826 - - - - 464,341 - - - - - - - - - - 3,254,605 - - - - 155,354 - - - - - - - - - - - - - - - - - - - - - - - - 422,398 3,362,606 469,544 8,230,476 -$ 422,398$ 3,362,606$ 469,544$ 8,553,530$ Continued on next page. Capital Projects Funds December 31, 2022 118 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivables Lease and other receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other funds Unearned Revenue Accrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES: Leases Unavailable revenue Total deferred inflow of resources FUND BALANCE: Restricted: General government Public safety Highways and streets Drainage and other capital assets Economic development Culture and recreation Committed: General government Public safety Highways and streets Drainage Economic development Culture and recreation Assigned Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS (Continued) Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund 2021 L/R Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds 3,853$ 21,181$ 14,773$ 14,648$ 54,455$ 51,659,446$ - 76,082 41,419 10,575 128,076 671,519 - - - - - 69,390 - - - - - 351,310 - - - - - - - - - - - 8,592,141 3,853 97,263 56,192 25,223 182,531 61,343,806 - - - - - 1,160,177 - - - - - 1,480,423 - - - - - 69,390 - - - - - 1,917,965 - - - - - 325,557 - - - - - 4,953,512 - - - - - 8,438,899 - 76,082 41,419 10,575 128,076 892,582 - 76,082 41,419 10,575 128,076 9,331,481 - - - - - 669,071 - - - - - 2,250,165 3,853 21,181 14,773 14,648 54,455 20,802,229 - - - - - 6,707,179 - - - - - 966,848 - - - - - 9,728,252 - - - - - - - - 1,164,581 - - - - - 3,254,605 - - - - - 456,745 - - - - - - - - - - - 158,789 - - - - - 900,349 - - - - - - - - - - - - - - - - 3,853 21,181 14,773 14,648 54,455 47,058,813 3,853$ 97,263$ 56,192$ 25,223$ 182,531$ 61,343,806$ Debt Service Funds December 31, 2022 119 City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street Deferral REVENUES: Charges for services 783,665$ 6,234$ 4,401,882$ 6,097,377$ 186,819$ -$ 1,210$ Investment income 62,320 880 57,328 84,010 5,140 - 3,790 Licenses and permits - - - - - - - Other - - - - 1,332 - - Other taxes - - - - - - - Contributions - - 203 12,000 - - - General property taxes - - - - - - - Intergovernmental: Grants - - - - - - - Shared revenue - - - - - 2,554,162 - Total revenues 845,985 7,114 4,459,413 6,193,387 193,291 2,554,162 5,000 EXPENDITURES: Current: General government - - - - - - - Public safety - - - - - - 27,677 Streets and other infrastructure - - - - - - Economic development - - - - - - Culture and recreation - - 3,682,899 5,357,239 151,208 - - Debt service: Principal - - - - - - - Interest - - - - - - - Lease rentals and issuance costs - - - - - - - Capital outlay: General government - - - - - - - Public safety - - - - - - - Streets and other infrastructure - - - - - 1,525,904 - Economic development - - - - - - - Culture and recreation 283,189 - - - - - - Total expenditures 283,189 - 3,682,899 5,357,239 151,208 1,525,904 27,677 Excess (deficiency) of revenues over (under) expenditures 562,796 7,114 776,514 836,148 42,083 1,028,258 (22,677) Other financing sources (uses): Transfers in, governmental funds - - 16,065 28,215 - - - Transfer in (out) from (to) enterprise funds - - - - - - Transfers (out), governmental funds - - - - - (525,798) - Bond issuance - principal - - - - - - - Bond issuance - premium - - - - - - - Capital lease proceeds - - - - - - - Total other financing sources - - 16,065 28,215 - (525,798) - NET CHANGE IN FUND BALANCES 562,796 7,114 792,579 864,363 42,083 502,460 (22,677) FUND BALANCES: beginning 2,231,735 33,169 1,665,640 2,725,355 185,687 1,696,342 184,317 FUND BALANCES: ending 2,794,531$ 40,283$ 2,458,219$ 3,589,718$ 227,770$ 2,198,802$ 161,640$ Continued on next page. Special Revenue 120 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) User Fee Barrett Law Barrett Law Surplus Storm Water 4CDC Operating Fund CMCDC Operating Fund Motor Vehicle Highway Fund 40,318$ -$ -$ 4,136,878$ 378,262$ 85,764$ -$ - - - 23,464 - - - 116,887 - - - - - - - - - 50,448 565 245,000 1,337,374 - - - - - - 978,717 - - - - - - - - - - - - - 11,278,784 - - - - - - - - - - - - - 4,099,554 157,205 - - 4,210,790 378,827 330,764 17,694,429 - - - - 1,702,248 - - (141,678) - - - - - - - - - - - - 16,299,335 - - - - 153,467 245,000 - - - - - - - - - - - - 450,000 - - - - - - 121,483 234,215 - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,564,889 - - 2,367,059 - - - - - - - - - - - - - - (141,678) - - 3,136,372 2,089,930 245,000 18,666,394 298,883 - - 1,074,418 (1,711,103) 85,764 (971,965) - - - 69,603 - - 8,786 - - - - - - - - - (2,372,195) - - (49,373) - - - - - - - - - - - - - - - - - - - - 369,520 - - - (2,302,592) - - 328,933 298,883 - - (1,228,174) (1,711,103) 85,764 (643,032) 114,726 6 166,369 7,759,327 2,007,806 82,780 4,080,340 413,609$ 6$ 166,369$ 6,531,153$ 296,703$ 168,544$ 3,437,308$ Continued on next page. Special Revenue 121 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) MIHP Opioid Settlement Health Self Insurance Workers Comp Support of the Arts Keystone Non- Reverting -$ -$ -$ -$ -$ -$ 163 - - - - 3,206 - - - - - - - 197,380 - 1,128 - - - - - - - - 273 - - - - - - - - - - - - - - - - - - - - - - - - 436 197,380 - 1,128 - 3,206 - - 503,999 323,008 - - 2,164 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,164 - 503,999 323,008 - - (1,728) 197,380 (503,999) (321,880) - 3,206 - - 957,633 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 957,633 - - - (1,728) 197,380 453,634 (321,880) - 3,206 8,529 - 559,592 473,235 19,134 138,375 6,801$ 197,380$ 1,013,226$ 151,355$ 19,134$ 141,581$ Continued on next page. Special Revenue 122 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Bicycle Facilities Non- Reverting Center Green Ice Non- Reverting Events & Festival Non- Reverting Code Enforcement Non-Reverting Sidewalk Non- Reverting Urban Forestry -$ -$ -$ -$ -$ -$ 1,117 14,752 1,214 1,179 866 - - - - - - - 18,944 391,069 2,154 10,000 - - - - - - - - - - 40,250 - - - - - - - - - - - - - - - - - - - - - 20,061 405,821 43,618 11,179 866 - - - - - - - - - - - - - - - - - 25,324 - - - - - - - - 270,479 14,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 270,479 14,000 - 25,324 - 20,061 135,342 29,618 11,179 (24,458) - - - - - 50,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 50,000 - 20,061 135,342 29,618 11,179 25,542 - 31,619 430,331 26,666 41,022 30,387 74,759 51,680$ 565,673$ 56,284$ 52,201$ 55,929$ 74,759$ Continued on next page. Special Revenue 123 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Clerk's Record Perpetuation Court Interpreter Public Defender Judicial Salary Fees Historic Preservation Fund Fire Gift -$ 2 2,151$ 20,061$ -$ -$ - - - - - 474 - - - - - - 21,298 - - - 68,826 - - - - - - - - - - - - 38,658 - - - - - - - - - - - - - - - - - - 21,298 2 2,151 20,061 68,826 39,132 34,236 - - - - - - - 7,200 25,499 - 47,397 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 34,236 - 7,200 25,499 - 47,397 (12,938) 2 (5,049) (5,438) 68,826 (8,265) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (12,938) 2 (5,049) (5,438) 68,826 (8,265) 300,992 80 8,039 98,758 209,566 24,150 288,054$ 82$ 2,990$ 93,320$ 278,392$ 15,885$ Continued on next page. Special Revenue 124 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Police Gift Parks Gift Community Relations Gift Redevelopment Commission Gift Economic Development Housing Authority -$ -$ -$ -$ -$ -$ 3,050 2,903 5,293 9 - - - - - - - - - - 2,490 - 20,000 - - - - - - - 93,649 67,714 188,978 15,000 - - - - - - - - - - - - - - - - - - - - 96,699 70,617 196,761 15,009 20,000 - - - - - - - 122,080 - - - - - - - - - - - - - - - - - - 58,596 173,864 4,970 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 122,080 58,596 173,864 4,970 - - (25,381) 12,021 22,897 10,039 20,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (25,381) 12,021 22,897 10,039 20,000 - 180,344 106,893 166,255 32,502 53,565 58,865 154,963$ 118,914$ 189,152$ 42,541$ 73,565$ 58,865$ Continued on next page. Special Revenue 125 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Drug Task Force Thoroughfare COVID Fund Grant Bond Bank Project Fund Total Special Revenue Funds -$ 150,896$ -$ -$ -$ 16,291,519$ 8,662 41,962 12,534 - 62,216 396,532 - - - - - 116,887 165,524 - - - 5,278,531 7,812,063 - - - - - 978,717 - - - - - 456,725 - - - - - 11,278,784 15,177 - 4,301,098 2,234,815 - 6,551,090 - - - - - 6,653,716 189,363 192,858 4,313,632 2,234,815 5,340,747 50,536,033 - - - - - 2,563,491 222,682 - - 1,031,229 - 1,344,250 - - - - 1,708,839 18,033,498 - - - - - 398,467 - - - - - 9,713,255 - - - - 6,155,000 6,605,000 - - - - 6,554,844 6,910,542 - - - - - - - - - - - - - - - - - - - - 4,172,514 - - 10,630,366 - - - - - - - - - - - 283,189 222,682 - 4,172,514 1,031,229 14,418,683 56,482,058 (33,319) 192,858 141,118 1,203,586 (9,077,936) (5,946,025) - - - - 7,198,809 8,329,111 - - - - - - - - - (1,267,649) (1,010,315) (5,225,330) - - - - - - - - - - - - - - - - - 369,520 - - - (1,267,649) 6,188,494 3,473,301 (33,319) 192,858 141,118 (64,063) (2,889,442) (2,472,724) 406,653 1,694,199 8,206 853,941 12,276,350 41,246,606 373,334$ 1,887,057$ 149,324$ 789,878$ 9,386,908$ 38,773,882$ Continued on next page. Special Revenue 126 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Redevelopment Authority Capital Projects Fund Ambulance Parks Capital Cumulative Capital Improvement Cumulative Capital Sewer -$ 2,143,606$ -$ -$ -$ 353 67,347 12,668 - - - - - - - 4,786 - - - - - - - 181,057 - - - - - - - - - - - - - - - - - - - - - 5,139 2,210,953 12,668 181,057 - - - - - - - 1,339,962 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 213,869 - - 197,906 - - - - - - - - 378,268 - - 213,869 1,339,962 378,268 197,906 - (208,730) 870,991 (365,600) (16,849) - - - 280,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - 280,000 - - (208,730) 870,991 (85,600) (16,849) - 292,686 2,383,614 549,941 172,203 9,651 83,956$ 3,254,605$ 464,341$ 155,354$ 9,651$ Continued on next page. Capital Projects Funds 127 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Cumulative Capital Development Old Town/126th Construction 2016 Property Tax Bond Construction 1 2016 Property Tax Bond Construction 3 2016 Property Tax Bond Construction 4 -$ -$ -$ -$ -$ - - - 1,531 21 - - - - - 24,000 - - - - 362,488 - - - - - - - - - 4,181,341 - - - - - - - - - 1,676 - - - - 4,569,505 - - 1,531 21 - - - - - - - - - - 379,521 - - 375 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,725,398 - - - - - - - - - - - 379,521 - - 1,725,773 - 4,189,984 - - (1,724,242) 21 - - - 5 29,974 - - - - - (4,634,781) - (1,492) - (410,394) - - - - - - - - - - - - - - - (4,634,781) - (1,492) 5 (380,420) (444,797) - (1,492) (1,724,237) (380,399) 445,457 459 1,492 1,731,139 380,399 660$ 459$ -$ 6,902$ -$ Continued on next page. Capital Projects Funds 128 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) 2016 Property Tax Bond Construction 13 2016 Project Fund 2017 Project Fund 2018 CMBC Bond Construction Fund Total Capital Projects Funds -$ -$ -$ -$ 2,143,606$ 10 7,222 37,953 130 127,235 - - - - - - 3,103,840 - - 3,132,626 - - - - 543,545 - - - - - - - - 4,181,341 - - - - - - - - - 1,676 10 3,111,062 37,953 130 10,130,029 - - - - - - - - - 1,339,962 543,657 114,345 4,272,440 - 5,310,338 - - - - - - - - - - - - - - - - 370,000 370,000 - - - 503,312 503,312 - - - - - - - - - - - - - - - - 5,625 2,377,176 - - 4,519,974 - - - 1,000 1,000 - - - - 378,268 549,282 2,491,521 4,272,440 874,312 12,422,854 (549,272) 619,541 (4,234,487) (874,182) (2,292,825) 410,391 - - 879,000 1,599,370 - - - - - (28,484) - - - (5,075,151) - - - - - - - - - - - - - - 381,907 - - 879,000 (3,475,781) (167,365) 619,541 (4,234,487) 4,818 (5,768,606) 167,365 (197,143) 7,597,093 464,726 13,999,082 -$ 422,398$ 3,362,606$ 469,544$ 8,230,476$ Continued on next page. Capital Projects Funds 129 REVENUES: Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental: Grants Shared revenue Total revenues EXPENDITURES: Current: General government Public safety Streets and other infrastructure Economic development Culture and recreation Debt service: Principal Interest Lease rentals and issuance costs Capital outlay: General government Public safety Streets and other infrastructure Economic development Culture and recreation Total expenditures Excess (deficiency) of revenues over (under) expenditures Other financing sources (uses): Transfers in, governmental funds Transfer in (out) from (to) enterprise funds Transfers (out), governmental funds Bond issuance - principal Bond issuance - premium Capital lease proceeds Total other financing sources NET CHANGE IN FUND BALANCES FUND BALANCES: beginning FUND BALANCES: ending City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund 2021 L/R Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds -$ -$ -$ -$ -$ 18,435,125$ - - - - - 523,767 - - - - - 116,887 - - - - - 10,944,689 - 187,769 102,221 26,221 316,211 1,838,473 - - - - - 456,725 - 2,279,386 1,240,265 318,427 3,838,078 19,298,203 - - - - - 6,551,090 - 868 473 - 1,341 6,656,733 - 2,468,023 1,342,959 344,648 4,155,630 64,821,692 - - - - - 2,563,491 - - - - - 2,684,212 - - - - - 23,343,836 - - - - - 398,467 - - - - - 9,713,255 - - - - - - 6,975,000 - - - - - 7,413,854 - - - - - - - - - - - - - - - - - - - - - - - - 15,150,340 - - - - - 1,000 - - - - - 661,457 - - - - - 68,904,912 - 2,468,023 1,342,959 344,648 4,155,630 (4,083,220) - - - - - 9,928,481 - - - - - - - (2,808,000) (1,484,690) (330,000) (4,622,690) (14,923,171) - - - - - - - - - - - - - - - - - 369,520 - (2,808,000) (1,484,690) (330,000) (4,622,690) (4,625,170) - (339,977) (141,731) 14,648 (467,060) (8,708,390) 3,853 361,158 156,504 - 521,515 55,767,203 3,853$ 21,181$ 14,773$ 14,648$ 54,455$ 47,058,813$ Debt Service Funds 130 City of Carmel, Indiana SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2022 Motor Vehicle Highway Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Property taxes 11,971,988$ 11,971,988$ 11,278,784$ (693,204)$ MVHF distribution 3,606,288 3,606,288 4,095,028 488,740 Miscellaneous 2,796,265 2,643,782 2,328,121 (315,661) Total Revenues 18,374,541$ 18,222,058$ 17,701,933 (520,125)$ EXPENDITURES: Engineering: Personal services 1,970,150 1,970,150 1,920,916 (49,234) Supplies 12,400 12,400 14,797 2,397 Other services and charges 844,602 853,388 382,012 (471,376) Capital outlay 64,556 64,556 52,110 (12,446) Street Department: Personal services 7,150,323 7,150,323 6,494,422 (655,901) Supplies 2,880,502 2,880,502 1,505,552 (1,374,950) Other services and charges 7,058,705 7,058,705 5,670,069 (1,388,636) Capital outlay 1,854,817 1,854,817 1,502,614 (352,203) Other expenditures - - - 49,373 - - 453,415 453,415 Total Expenditures 21,836,055$ 21,844,841$ 17,995,907$ (3,799,561)$ Fire Pension Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive REVENUES:Original Final Amounts (Negative) Interest -$ -$ 1,023$ 1,023$ Miscellaneous 6,000 6,000 - (6,000) State assumption of pension payments 626,722 626,722 597,246 (29,476) Total Revenues 632,722 632,722 598,269 (34,453) EXPENDITURES: Personal services 629,769 629,769 614,080 (15,689) Supplies 150 150 - (150) Other services and charges 8,000 8,000 - (8,000) Total Expenditures 637,919$ 637,919$ 614,080$ (23,839)$ Continued on next page. Construction, reconstruction, and preservation 131 City of Carmel, Indiana SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Police Pension Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Interest -$ -$ 3,685$ 3,685$ State assumption of pension payments 618,134 618,134 612,373 (5,761) Total Revenues 618,134 618,134 616,058 (2,076) EXPENDITURES: Personal services 603,888 603,888 607,299 3,411 Supplies 300 300 - (300) Other services and charges 5,200 5,200 200 (5,000) Total Expenditures 609,388$ 609,388$ 607,499$ (1,889)$ Local Road & Street Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Local road & street distribution 1,915,226$ 1,915,226$ 2,554,162$ 638,936$ Miscellaneous 604,538 604,538 - (604,538) Total Revenues 2,519,764 2,519,764 2,554,162 34,398 EXPENDITURES: Other services and charges 3,985,245 3,985,245 2,140,979 (1,844,266) Capital outlay 2,174,472 2,174,472 - (2,174,472) Debt service 525,798 525,798 525,798 - Total Expenditures 6,685,515$ 6,685,515$ 2,666,777$ (4,018,738)$ Continued on next page. 132 City of Carmel, Indiana SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) Cumulative Capital Improvement Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Cigarette tax distribution 205,327$ 205,327$ 181,057$ (24,270)$ Total Revenues 205,327 205,327 181,057 (24,270) EXPENDITURES: Other services and charges 296,388 296,388 162,596 (133,792) Capital outlay 98,800 98,800 - (98,800) Total Expenditures 395,188$ 395,188$ 162,596$ (232,592)$ Cumulative Capital Development Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Property tax 4,212,538$ 4,212,538$ 4,181,341$ (31,197)$ Commercial vehicle excise tax 1,880 1,545 1,676 131 Other 430,634 305,834 386,488 80,654 Total Revenues 4,645,052 4,519,917 4,569,505 49,588 EXPENDITURES: Other services and charges 850,997 850,997 379,521 (471,476) Capital outlay - - - - Debt service 4,634,781 4,634,781 4,634,781 - Total Expenditures 5,485,778$ 5,485,778$ 5,014,302$ (471,476)$ Continued on next page. 133 City of Carmel, Indiana SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2022 (Continued) 2004 Road Bond P/I Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Property tax 1,777,691$ 1,777,691$ 2,279,386$ 501,695$ Commercial vehicle excise tax 1,244 669 868 199 Other 101,235 129,045 187,769 58,724 Total Revenues 1,880,170 1,907,405 2,468,023 560,618 EXPENDITURES: Debt service 2,808,000 2,808,000 2,808,000 - Total Expenditures 2,808,000$ 2,808,000$ 2,808,000$ -$ 2016 G.O. Property Tax Bond Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Property tax 1,356,437$ 1,356,437$ 1,240,265$ (116,172)$ Commercial vehicle excise tax 598 510 473 (37) Other 131,808 98,466 102,221 3,755 Total Revenues 1,488,843 1,455,413 1,342,959 (112,454) EXPENDITURES: Debt service 1,484,690 1,484,690 1,484,690 - Total Expenditures 1,484,690$ 1,484,690$ 1,484,690$ -$ 134 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 1925 Police Pension Trust Fund accounts for the retirement and disability payments to police officers hired prior to May 1, 1977. The 1937 Fire Pension Trust Fund accounts for the retirement and disability benefits to firefighters hired prior to May 1, 1977. Custodial 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 custodial fund: The City Court Custodial Fund accounts for certain collections made by municipal court for redistribution to third parties. 135 1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust Funds ASSETS: Cash and cash equivalents 138,607$ 4,396$ 143,003$ Receivable from State of Indiana 50,965 51,509 102,474 Total assets 189,572 55,905 245,477 LIABILITIES: Payroll withholdings 50,965 51,509 102,474 Total liabilities 50,965 51,509 102,474 NET POSITION: restricted for pensions 138,608$ 4,397$ 143,005$ City of Carmel, Indiana COMBINING STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDS December 31, 2022 136 City Court Custodial Fund ASSETS: Cash and cash equivalents 83,238$ Total assets 83,238 LIABILITIES: Court escrow - Total liabilities - NET POSITION 83,238$ City of Carmel, Indiana COMBINING STATEMENT OF FIDUCIARY NET POSITION - CUSTODIAL FUND December 31, 2022 137 1925 Police Pension Trust 1937 Fire Pension Trust Fund Total Trust Funds ADDITIONS: Employer contributions 612,374$ 597,247$ 1,209,621$ Investment income 3,685 1,023 4,708 Miscellaneous revenue 1,981 2,130 4,111 Total additions 618,040 600,400 1,218,440 DEDUCTIONS: Benefits 607,499 614,080 1,221,579 Other services and charges 1,982 2,131 4,113 Total deductions 609,481 616,211 1,225,692 NET INCREASE (DECREASE) IN NET POSITION 8,559 (15,811) (7,252) NET POSITION: beginning 130,048 20,207 150,255 NET POSITION: ending 138,608$ 4,397$ 143,005$ City of Carmel, Indiana COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION PENSION FUNDS For the Fiscal Year Ended December 31, 2022 138 City Court Custodial Fund ADDITIONS: Court costs and fees 902,873$ Miscellaneous revenue - Total additions 902,873 DEDUCTIONS: Distributions 897,320 Total deductions 897,320 NET INCREASE (DECREASE) IN NET POSITION 5,553 NET POSITION: beginning 77,685 NET POSITION: ending 83,238$ City of Carmel, Indiana COMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUND For the Fiscal Year Ended December 31, 2022 139 CONTENTS PAGES Financial Trends 141 - 146 Revenue Capacity 147 - 150 Debt Capacity 151 - 155 Demographic and Economic Information 156 - 157 Operating Information 158 - 159 Source: Unless otherwise noted, the information in these schedules is derived from the ACFR for the relevant year. Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. City of Carmel, Indiana 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. STATISTICAL SECTION 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. This part of the City's annual comprehensive financial report (ACFR) 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. 140 2022 2021 2020 2019 2018 2017 2016 2015 Governmental activities: Net investment in capital assets 393,652,201$ 369,685,144$ 376,746,545$ 378,022,382$ 412,830,075$ 344,721,169$ 299,216,267$ 314,601,738$ Not spendable - - - - - - - - Restricted 27,687,634 32,312,802 14,625,073 23,734,389 35,065,020 30,924,357 25,355,156 25,629,325 Unrestricted (33,751,811) (46,699,892) (68,251,242) (70,195,178) (94,111,631) (83,269,698) (35,777,877) (42,319,616) Total governmental activities net position 387,588,024$ 355,298,054$ 323,120,376$ 331,561,593$ 353,783,464$ 292,375,828$ 288,793,546$ 297,911,447$ Business-type activities: Net investment in capital assets 158,358,902$ 149,036,091$ 138,083,697$ 101,192,811$ 114,861,067$ 118,497,972$ 116,495,474$ 113,210,726$ Not spendable - - - - - - - - Restricted 1,272,789 2,254,154 2,069,280 - - - - - Unrestricted (34,722,917) (32,920,624) (27,625,888) 8,978,611 (5,903,010) (9,695,164) (4,011,279) (1,147,670) Total business-type activities net position 124,908,774$ 118,369,621$ 112,527,089$ 110,171,422$ 108,958,057$ 108,802,808$ 112,484,195$ 112,063,056$ Primary government: Net investment in capital assets 552,011,103$ 518,721,235$ 514,830,242$ 479,215,193$ 527,691,142$ 463,219,141$ 415,711,741$ 427,812,464$ Not spendable - - - - - - - - Restricted 28,960,423 34,566,956 16,694,353 23,734,389 35,065,020 30,924,357 25,355,156 25,629,325 Unrestricted (68,474,728) (79,620,516) (95,877,130) (61,216,567) (100,014,641) (92,964,862) (39,789,156) (43,467,286) Total primary government net position 512,496,798$ 473,667,675$ 435,647,465$ 441,733,015$ 462,741,521$ 401,178,636$ 401,277,741$ 409,974,503$ Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. City of Carmel, Indiana NET POSITION BY COMPONENT Last Ten Fiscal Years 141 2022 2021 2020 2019 2018 2017 2016 2015 Expenses: Governmental activities: General government 63,854,679$ 34,218,709$ 31,926,796$ 29,340,736$ 24,996,549$ 30,372,875$ 30,984,884$ 20,841,943$ Public safety 85,040,775 56,351,024 53,605,541 54,710,167 53,919,299 41,085,416 40,267,560 42,151,467 Streets and other infrastructure 9,192,941 48,809,731 43,870,342 46,372,722 48,637,707 25,476,391 12,340,719 29,584,125 Economic development 22,793,124 32,871,669 34,750,667 39,956,058 15,817,738 16,711,747 54,995,901 10,771,611 Culture and recreation 15,868,909 11,946,131 20,141,103 21,497,105 21,621,998 17,932,242 10,122,290 18,549,674 Unallocated interest expense 5,505,060 5,059,713 5,593,677 2,623,251 2,267,516 18,217,810 5,545,855 4,542,707 Total governmental activities expenses 202,255,488 189,256,977 189,888,126 194,500,039 167,260,807 149,796,481 154,257,209 126,441,527 Business-type activities: Water 22,193,459 21,799,363 20,130,070 20,063,976 19,277,075 20,824,320 19,439,437 13,542,037 Sewer 11,303,035 9,859,506 10,567,339 10,479,383 10,163,336 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 33,496,494 31,658,869 30,697,409 30,543,359 29,440,411 37,413,146 31,814,317 21,743,745 Total primary government expenses 235,751,982$ 220,915,846$ 220,585,535$ 225,043,398$ 196,701,218$ 187,209,627$ 186,071,526$ 148,185,272$ Program Revenues: Governmental activities: Charges for services: General government 166,786$ 131,588$ 306,364$ 146,498$ 221,467$ 211,995$ 82,803$ 72,056$ Public safety 2,213,582 1,945,203 1,926,343 1,774,066 1,713,002 1,726,580 1,470,638 1,152,600 Streets and other infrastructure 4,287,774 4,763,870 4,016,186 4,181,410 2,869,523 98,090 248,036 480 Economic development 615,833 1,595,688 1,470,526 1,913,324 1,482,785 52,093 - - Culture and recreation 12,765,467 10,273,612 8,087,184 12,983,411 12,403,573 12,818,388 11,585,645 7,345,221 Operating grants and contributions: General government 1,773,107 1,134,894 3,357,992 - - - - - Public safety 1,224,798 1,192,278 1,238,625 1,245,695 1,322,719 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 2,234,815 2,154,150 4,324,469 3,070,276 386,624 1,906,397 865,258 3,516,506 Economic development - 1,184,653 - - - - - - Culture and recreation - - - - - - - 50,043 Total governmental activities revenues 25,282,162$ 24,375,936$ 24,727,689$ 25,314,680$ 20,399,693$ 16,910,437$ 14,365,031$ 12,197,524$ Continued on next page. Last Ten Fiscal Years CHANGES IN NET POSITION City of Carmel, Indiana 142 2022 2021 2020 2019 2018 2017 2016 2015 Business-type activities: Charges for services: Water 21,083,425$ 20,017,196$ 19,764,152$ 18,407,840$ 17,735,563$ 16,982,790$ 15,458,695$ 13,500,929$ Sewer 11,440,956 11,035,932 10,619,535 10,157,332 9,994,658 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 Capital grants and contributions: Water 6,022,094 5,775,390 3,419,195 3,458,396 3,279,973 4,995,765 4,620,949 - Sewer 2,094,015 1,912,958 761,819 387,133 629,483 336,363 552,460 - Total business-type activities revenues 40,640,490 38,741,476 34,564,701 32,410,701 31,639,677 36,317,481 34,192,478 26,011,545 Total primary government revenues 65,922,652$ 63,117,412$ 59,292,390$ 57,725,381$ 52,039,370$ 53,227,918$ 48,557,509$ 38,209,069$ Net (expense) revenue and changes in net position: Governmental Activities (176,973,326)$ (164,881,041)$ (165,160,437)$ (169,185,359)$ (146,861,114)$ (132,886,044)$ (139,892,178)$ (114,244,003)$ Business-Type Activities 7,143,996 7,082,607 3,867,292 1,867,342 2,199,266 (1,095,665) 2,378,161 4,267,800 (169,829,330) (157,798,434) (161,293,145) (167,318,017) (144,661,848) (133,981,709) (137,514,017) (109,976,203) GENERAL REVENUES AND TRANSFERS: Property tax 65,741,734 63,905,027 63,533,389 56,571,934 54,455,110 52,042,841 52,989,360 44,104,576 Income tax 54,550,714 57,887,325 44,412,562 44,847,572 43,996,077 41,801,838 36,700,613 32,745,504 Food and beverage tax 3,283,486 2,712,115 - - - - - - Tax incremental revenue 44,052,895 44,334,410 36,446,525 36,555,314 33,658,972 30,326,364 28,850,762 26,154,361 Unrestricted investment earnings 1,585,274 393,918 1,120,777 4,208,019 4,487,604 2,723,267 574,253 155,461 2,527,991 168,963 - - - - - - Other 36,916,359 26,416,886 24,398,945 21,196,478 29,899,818 15,522,157 16,797,331 20,679,190 Total general revenues and transfers 208,658,453 195,818,644 169,912,198 163,379,317 166,497,581 142,416,467 135,912,319 123,839,092 38,829,123 38,020,210 8,619,053 (3,938,700) 21,835,733 8,434,758 (1,601,698) 13,862,889 SPECIAL ITEM: gain - - - - - - - 619,000 Total CHANGE IN NET POSITION 38,829,123 38,020,210 8,619,053 (3,938,700) 21,835,733 8,434,758 (1,601,698) 14,481,889 NET POSITION: beginning 473,667,675 435,647,465 441,733,015 462,741,521 400,056,203 401,190,880 409,974,503 395,492,614 Restatement - - (14,704,603) (17,069,806) 40,849,585 (8,447,001) (7,095,064) - NET POSITION: beginning, adjusted 473,667,675 435,647,465 427,028,412 445,671,715 440,905,788 392,743,879 402,879,439 395,492,614 NET POSITION: ending 512,496,798$ 473,667,675$ 435,647,465$ 441,733,015$ 462,741,521$ 401,178,637$ 401,277,741$ 409,974,503$ Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. Total primary government net (expense) revenue City of Carmel, Indiana CHANGES IN NET POSITION Last Ten Fiscal Years (Continued) CHANGE IN NET POSITION BEFORE SPECIAL ITEMS American Rescue Plan - lost revenue replacement 143 2022 2021 2020 2019 2018 2017 2016 2015 General Fund: Nonspendable -$ -$ -$ -$ -$ -$ -$ -$ Restricted - - - - - - - - Committed 5,926,992 - - - - - - - Assigned 8,565,071 6,726,730 5,259,777 3,014,336 3,014,336 1,803,672 1,910,880 1,416,155 Unassigned 18,878,417 22,154,293 22,314,019 22,006,859 23,328,255 15,034,935 15,066,402 14,008,886 Total General Fund 33,370,480$ 28,881,023$ 27,573,796$ 25,021,195$ 26,342,591$ 16,838,607$ 16,977,282$ 15,425,041$ All Other Governmental Funds: Nonspendable -$ -$ -$ -$ -$ -$ -$ -$ Restricted 218,211,288 207,974,077 90,467,731 128,443,455 178,817,196 256,581,733 257,811,177 43,069,142 Committed 5,935,069 4,998,279 6,073,168 5,286,665 6,007,566 5,443,978 3,212,225 1,115,637 Assigned - - - - - - - - Unassigned - - - - - - - (249,855) Total all other Governmental Funds 224,146,357$ 212,972,356$ 96,540,899$ 133,730,120$ 184,824,762$ 262,025,711$ 261,023,402$ 43,934,924$ Total, Governmental Funds 257,516,837$ 241,853,379$ 124,114,695$ 158,751,315$ 211,167,353$ 278,864,318$ 278,000,684$ 59,359,965$ City of Carmel, Indiana FUND BALANCES ‐ GOVERNMENTAL FUNDS Last Ten Fiscal Years (modified accrual basis of accounting) Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. 144 2022 2021 2020 2019 2018 2017 2016 2015 Revenues: Property tax 65,911,409$ 63,283,378$ 63,437,130$ 56,633,438$ 54,425,761$ 52,259,944$ 52,647,063$ 44,043,914$ Income tax 52,730,393 50,521,352 47,894,782 45,139,812 44,606,607 37,187,574 46,625,784 28,847,934 Food and beverage tax 3,283,486 2,712,115 Other local tax 44,052,895 44,334,410 36,446,525 36,555,314 33,658,972 30,326,364 28,850,762 26,154,361 Charges for services 20,049,442 18,709,945 15,806,603 20,998,709 18,679,782 14,907,146 12,901,368 8,570,357 Investment income 1,337,884 236,719 897,178 3,958,675 4,356,867 2,339,501 442,961 74,597 Licenses and permits 3,037,163 3,058,442 3,176,106 2,572,301 2,909,371 2,490,849 2,441,853 2,159,234 Fines and forfeits 224,910 292,965 250,062 439,110 457,062 466,731 571,556 788,604 Intergovernmental: Grants 7,760,711 4,650,285 7,748,027 3,166,761 4,358,623 1,710,058 1,191,485 3,062,731 Fire service contract - - - - - - 6,825,041 4,870,501 State shared revenue 7,600,221 7,243,707 6,697,371 6,986,908 2,993,528 2,736,296 1,198,398 1,116,639 Other 171,959 148,236 2,177,824 3,289,848 7,426,341 5,995,761 - - Contributions 456,725 551,408 100,185 240,302 190,321 262,116 660,714 286,716 Other 23,539,536 14,040,943 11,480,128 7,091,842 12,175,681 4,336,810 5,858,544 10,915,190 Total revenues 230,156,734 209,783,905 196,111,921 187,073,020 186,238,916 155,019,150 160,215,529 130,890,778 Expenditures: Current: General government 22,362,064 30,733,896 29,981,293 28,720,273 24,830,230 29,533,750 28,670,916 20,135,899 Public safety 60,072,671 57,182,088 52,740,203 49,435,106 49,683,728 40,261,813 38,547,773 45,026,384 Streets and other infrastructure 25,128,383 27,810,264 20,944,061 31,433,579 30,794,894 13,258,597 13,540,350 13,784,488 Economic development 3,122,840 8,537,360 4,730,248 5,840,957 20,179,724 1,319,474 5,074,808 4,284,583 Culture and recreation 16,743,909 14,037,667 14,474,713 18,102,363 14,359,423 12,938,526 13,397,374 13,432,578 Debt Service: Principal 34,785,245 33,983,881 28,078,897 24,650,551 21,976,855 18,808,576 17,387,515 15,768,608 Interest 28,689,284 25,656,085 30,190,082 28,998,519 28,361,382 26,688,864 17,763,071 17,223,247 Lease rentals and issuance costs 140,482 1,216,129 - 328,421 - - - - Capital outlay: General government 32,797,626 4,224,592 1,629,419 1,301,526 503,513 707,523 2,931,360 119,885 Public safety 23,759,989 3,596,303 4,189,888 1,016,079 2,440,252 1,327,731 1,925,392 3,710,693 Streets and other infrastructure 15,150,340 17,459,764 44,467,946 52,780,716 84,098,163 60,138,533 25,097,876 4,445,749 Economic development 17,373,538 5,197,988 12,149,970 24,325,592 15,212,738 34,138,220 16,809,771 2,439,830 Culture and recreation 1,010,828 1,863,371 2,890,800 2,261,904 5,061,517 747,324 734,053 422,388 Total expenditures 281,137,199 231,499,388 246,467,520 269,195,586 297,502,419 239,868,931 181,880,259 140,794,332 Excess (deficit) of revenues over (under) expenditures (50,980,465) (21,715,483) (50,355,599) (82,122,566) (111,263,503) (84,849,781) (21,664,730) (9,903,554) Continued on next page. City of Carmel, Indiana CHANGES IN FUND BALANCES ‐ GOVERNMENTAL FUNDS (modified accrual basis of accounting) Last Ten Fiscal Years 145 2022 2021 2020 2019 2018 2017 2016 2015 Other financing sources (uses): Bond issuance - principal 62,450,000 121,370,000 9,200,000 24,695,000 13,791,036 81,358,423 199,265,510 - Bond issuance - premium 534,075 13,940,632 - - 243,540 3,334,569 35,087,956 - Proceeds - refunding - - 187,465,000 - - 23,180,000 18,170,404 - Capital lease proceeds 2,339,342 2,823,029 4,648,419 3,530,369 2,555,639 2,638,693 2,294,226 3,167,006 Payment to refunded bond escrow agent - - (186,342,596) - - (26,501,547) (17,909,681) - Transfers in 60,571,964 81,788,668 79,346,147 79,578,276 60,427,364 126,937,135 278,264,371 30,928,247 Transfer in from associated utility 1,320,506 1,320,506 1,912,211 1,320,506 1,320,506 1,703,277 1,606,319 1,014,100 Transfers out (60,571,964) (81,788,668) (79,346,147) (79,578,276) (60,427,364) (126,937,135) (278,264,371) (30,928,247) Total other financing sources (uses)66,643,923 139,454,167 16,883,034 29,545,875 17,910,721 85,713,415 238,514,734 4,181,106 Total change in fund balances 15,663,458$ 117,738,684$ (33,472,565)$ (52,576,691)$ (93,352,782)$ 863,634$ 216,850,004$ (5,722,448)$ Total debt service expenditures as a percentage of noncapital expenditures 29.3% 30.6% 30.1% 27.5% 29.5% 28.9% 23.4% 25.0% Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. (Continued) City of Carmel, Indiana CHANGES IN FUND BALANCES ‐ GOVERNMENTAL FUNDS (modified accrual basis of accounting) Last Ten Fiscal Years 146 Taxes Net Value Net Value Total Total Payable Real Estate Railroad/ Utility/ Business Net Taxable Estimated Direct Year 2 Property Personal Property Assessed Value Actual Value 3 Tax Rate 2022 8,783,788,344 523,259,929 9,307,048,273 16,744,445,574 55.6% 0.7877 2021 8,334,052,361 516,783,628 8,850,835,989 15,967,555,616 55.4% 0.7877 2020 8,005,622,698 509,094,794 8,514,717,492 15,258,648,418 55.8% 0.7877 2019 7,442,409,615 458,423,501 7,900,833,116 14,197,500,652 55.6% 0.7886 2018 6,666,896,042 467,365,607 7,134,261,649 12,997,560,747 54.9% 0.7887 2017 6,474,642,116 436,043,965 6,910,686,081 12,552,181,043 55.1% 0.7895 2016 6,220,543,748 420,168,770 6,640,712,518 12,043,692,490 55.1% 0.8356 2015 6,006,875,967 409,451,119 6,416,327,086 11,591,806,730 55.4% 0.7007 2014 4,829,947,454 398,186,327 5,228,133,781 9,538,010,360 54.8% 0.7007 2013 4,762,146,198 373,474,201 5,135,620,399 9,445,479,646 54.4% 0.7007 Sources:Hamilton County Auditor's office Indiana Gateway for Government Units Notes:1.Property taxes are the City's most significant own-source revenue. 2.Assessed on January 1 of the prior year for taxes due and payable in the year indicated. 3. 4.Tax rates are per $100 of net assessed value. Estimated actual value is 100% of gross assessed value, which approximates market value. Residential real property for homesteads is subject to a $45,000 homestead deduction and a 35% supplemental homestead and other deductions to arrive at net assessed value. City of Carmel, Indiana ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY Last Ten Fiscal Years Net Taxable Assessed Value as a Percentage of Estimated Actual Value 147 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 City Direct Rates: Corporation General 0.5591 0.5222 0.5631 0.5572 0.5769 0.5741 0.5745 0.5088 0.5381 0.5459 Motor Vehicle Highway 0.1350 0.1783 0.1268 0.1188 0.1051 0.1027 0.1701 0.1643 0.1249 0.1268 Debt Service 0.0141 0.0161 0.0183 0.0184 0.0193 0.0195 0.0000 0.0000 0.0000 0.0000 Debt Payment 0.0036 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 Redevelopment Bond 0.0259 0.0211 0.0295 0.0445 0.0374 0.0440 0.0424 0.0000 0.0101 0.0000 Cumulative Capital Development 0.0500 0.0500 0.0500 0.0497 0.0500 0.0492 0.0486 0.0276 0.0276 0.0280 Total Direct Rate 0.7877 0.7877 0.7877 0.7886 0.7887 0.7895 0.8356 0.7007 0.7007 0.7007 Overlapping Rates: State 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 County 0.2744 0.2744 0.2754 0.2791 0.2814 0.2814 0.2814 0.2926 0.3054 0.3074 Solid Waste 0.0029 0.0030 0.0030 0.0031 0.0032 0.0032 0.0032 0.0033 0.0033 0.0033 Township - Clay 0.0730 0.0741 0.0565 0.0640 0.0675 0.0694 0.0673 0.0746 0.0719 0.0781 Library 0.0742 0.0752 0.0751 0.0755 0.0760 0.0760 0.0778 0.0787 0.0787 0.0765 Carmel Clay School Corp 0.8602 0.8583 0.8572 0.8251 0.8118 0.8291 0.8053 0.8106 0.8453 0.8591 Total Direct and Overlapping Rate 2.0724 2.0727 2.0549 2.0354 2.0286 2.0486 2.0706 1.9605 2.0053 2.0251 Source: 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. City of Carmel, Indiana PROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS (Rate per $100 of assessed value) Last Ten Fiscal Years 148 Percentage of Total City Taxpayer Assessed Value Assessed Value Clarion Health North LLC 88,793,200 1.01% Karmel Property LLC 45,210,400 0.51% VSM Partners LLC 38,429,200 0.44% Carmel Lofts LLC 38,351,500 0.44% Edward Rose Development Carmel LLC 37,841,600 0.43% Carmel Center Apartments LLC 36,518,500 0.42% Hunt Sunrise LLC 35,236,900 0.40% BMF 2 Gramercy LLC 35,089,900 0.40% Lakeside Apartments of Carmel LLC 34,481,400 0.39% Edward Rose Development Company LLC 32,654,300 0.37% 422,606,900 4.81% Percentage of Total City Taxpayer Assessed Value Assessed Value Clarion Health North LLC 99,320,900 2.09% Carmel Lofts LLC 45,600,500 0.96% Clay Terrace Partners LLC 30,416,400 0.64% TIC Carmel Center 350 LLC 29,387,700 0.62% Duke Weeks Reality LP 28,519,500 0.60% MRI Spring Mill Miamidian 28,497,800 0.60% Legacy Town & Flats LLC 28,428,200 0.60% Carmel Indy Properties LLC 28,199,300 0.59% Carmel Indy Properties LLC 26,027,800 0.55% HR of Indiana LLC 25,418,700 0.53% 369,816,800 7.78% Source: Hamilton County Auditor's office. 2022 2013 City of Carmel, Indiana Current Year and Nine Years Ago PRINCIPAL PROPERTY TAXPAYERS 149 Taxes Total Certified Cash Percentage Payable Year Tax Levy Credits 1 Collections 2 Total of Levy 2022 69,854,334 3,428,107 65,592,982 69,021,089 93.90% 2021 66,364,322 2,967,513 63,283,378 66,250,891 99.83% 2020 63,779,530 2,425,294 61,908,918 64,334,212 100.87% 2019 59,383,729 2,402,495 55,252,616 57,655,111 97.09% 2018 56,917,333 2,048,991 53,042,657 55,091,648 96.79% 2017 52,180,837 2,642,506 50,907,298 53,549,804 102.62% 2016 55,990,426 2,917,489 52,647,063 55,564,552 99.24% 2015 45,416,367 1,132,485 44,043,913 45,176,398 99.47% 2014 44,020,059 1,105,727 40,554,757 41,660,484 94.64% 2013 43,391,737 1,119,259 38,072,795 39,192,054 90.32% Sources:Indiana Gateway for Government Units Indiana Department of Local Government Finance Note:1. 2. Indiana local units are required to credit back to taxpayers a portion of tax bills exceeding a percentage of each property's assessed value. A taxpayer's property tax liability on homestead property taxes is capped at 1%, other residential and agricultural property taxes are capped at 2%, and other real property and personal property taxes are capped at 3%. Property taxes approved by referendum are not subject to these limitations. Hamilton County Auditor's Office system is not structured to track collections by year levied. The amount collected includes any delinquent payment plus any penalty or interest applicable. At the end of 2022, total delinquent property tax due to the City for 2022 and all prior years was approximately $6,088,623. City of Carmel, Indiana PROPERTY TAX LEVIES AND COLLECTIONS Last Ten Fiscal Years Total Collections 150 2022 2021 2020 2019 2018 2017 2016 2015 Certified net assessed valuation 8,868,139,414$ 8,425,075,775$ $8,096,931,541 7,530,272,592$ 7,216,601,040$ 6,994,981,173$ 6,700,625,433$ 6,481,570,742$ 2% constitutional debt limit 2.0%2.0% 2.0%2.0%2.0%2.0%2.0%2.0% Subtotal 177,362,788 168,501,516 161,938,631 150,605,452 144,332,021 139,899,623 134,012,509 129,631,415 divided by three 1 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 Debt limit 59,120,929 56,167,172 53,979,544 50,201,817 48,110,674 46,633,208 44,670,836 43,210,472 Net debt applicable to debt limit (23,941,889) (25,189,286) (25,874,016) (24,822,199) (26,977,490) (29,641,000) (33,580,000) (15,417,000) Legal debt margin 35,179,041$ 30,977,886$ 28,105,528$ 25,379,618$ 21,133,184$ 16,992,208$ 11,090,836$ 27,793,472$ 59.50% 55.15% 52.07% 50.56% 43.93% 36.44% 24.83% 64.32% Source: Indiana Department of Local Government Finance Notes:1.Division by three is required to adjust for a change in the method of determining values since the constitutional standard was established. 2.The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. Legal debt margin as percentage City of Carmel, Indiana LEGAL DEBT MARGIN INFORMATION Last Ten Fiscal Years 151 2022 841,626,754 9,794,889 851,421,643 165,668,196 2,417,344 168,085,540 1,019,507,183 16.57% 9,999 2022 820,834,516 10,266,286 831,100,802 169,545,505 1,228,526 170,774,031 1,001,874,833 12.14% 9,942 2020 725,062,256 10,206,016 735,268,272 164,363,644 1,089,246 165,452,890 900,721,162 11.23% 9,029 2019 739,095,398 8,433,199 747,528,597 151,165,878 1,092,136 152,258,014 899,786,611 11.36% 8,903 2018 743,736,654 7,637,383 751,374,037 135,831,887 519,822 136,351,709 887,725,746 12.01% 9,161 2017 721,260,757 7,315,666 728,576,423 172,348,990 721,688 173,070,678 901,647,101 13.75% 9,901 2016 660,449,791 6,836,403 667,286,194 175,750,411 562,700 176,313,111 843,599,305 13.67% 9,476 2015 755,670,563 7,315,666 762,986,229 139,951,647 721,688 140,673,335 903,659,564 15.19% 10,186 1 Population and personal income data can be found on the Schedule of Demographics and Economic Statistics. City of Carmel, Indiana RATIOS OF OUTSTANDING DEBT BY TYPE Last Ten Fiscal Years Governmental Activities Bonds and Contract Purchases Total Governmental Activities Financed Purchase Obligations Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. Debt per Capita ˡ Total Business Activities Total Primary Government Business Activities Bonds and Contract Purchases Financed Purchase Obligation s Percentage of Personal Incomeˡ 152 2022 1,007,294,950 6.02%9,879 2021 990,380,021 6.20%9,827 2020 889,425,900 5.83%8,916 2019 890,261,276 6.27%8,809 2018 879,568,541 6.77%9,077 2017 893,609,747 7.12%9,813 2016 836,200,202 6.94%9,392 2015 895,622,210 7.73%10,096 Note: Details regarding the City's outstanding debt can be found in the notes to financial statements. 1 Includes bonds and contract purchases of both governmental and business-type activities. 2 Property tax value can be found on the Schedule of Assessed Value and Actual Value of Taxable Property. 3 Population data can be found on the Schedule of Demographics and Economic Statistics. Bonds and Contract Purchases 1 City of Carmel, Indiana RATIOS OF GENERAL BONDED DEBT OUTSTANDING Last Ten Fiscal Years Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. Per Capita 3 Actual Value of Taxable Property 2 153 Percent Amount Outstanding Applicable to Applicable to Governmental Unit Debt (1) Carmel (2)Carmel Direct Debt: City of Carmel (see page 152)851,421,643$ 100.00% 851,421,643$ Overlapping Debt Paid with Property Taxes: Carmel Clay School Corporation 186,815,000 100.00% 186,815,000 Carmel Clay Public Library 26,235,000 100.00% 26,235,000 Clay Township 91,008,343 100.00% 91,008,343 Hamilton County 114,190,000 33.37% 38,105,203 Westfield-Washington School Corporation 163,425,000 0.97% 1,585,223 Westfield Washington Public Library 17,090,000 0.97%165,773 Sub-Total Overlapping Debt 598,763,343$ 343,914,542 Total Direct and Overlapping Debt 1,195,336,185$ Population - 2022 (3)101,964 Estimated direct and overlapping debt per capita 11,723$ Note: (3) Source: U.S. Census Bureau Overlapping 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. (2) 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's total assessed value. City of Carmel, Indiana DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT at December 31, 2022 (1) Source: Gateway for Governmental Units. 154 Net Revenue Operating Operating Available for Revenue Expenses 1 Debt Service Principal Interest Coverage 2 Water Utility 2022 21,083,425$ 11,824,604$ 9,258,821$ 5,354,000$ 3 6,483,689$ 78% 2021 20,017,196$ 11,292,258$ 8,724,938$ 4,822,000$ 6,713,111$ 76% 2020 19,764,152$ 10,321,412$ 9,442,740$ 4,070,000$ 6,049,021$ 93% 2019 18,407,840$ 10,818,376$ 7,589,464$ 3,625,000$ 5,019,477$ 88% 2018 17,735,563$ 10,480,050$ 7,255,513$ 3,191,000$ 4,912,499$ 90% 2017 16,982,790$ 11,035,945$ 5,946,845$ 2,797,000$ 5,901,623$ 68% 2016 15,458,695$ 9,343,469$ 6,115,226$ 2,877,177$ 5,993,331$ 69% 2015 13,500,929$ 9,367,529$ 4,133,400$ 3,457,294$ 6,158,188$ 43% Sewer Utility 2022 11,440,956$ 7,722,176$ 3,718,780$ 1,593,678$ 1,086,748$ 139% 2021 11,035,932$ 6,533,523$ 4,502,409$ 1,559,466$ 791,020$ 192% 2020 10,619,535$ 7,178,126$ 3,441,409$ 1,401,260$ 725,310$ 162% 2019 10,157,332$ 7,377,202$ 2,780,130$ 1,359,058$ 472,156$ 152% 2018 9,994,658$ 7,042,092$ 2,952,566$ 1,323,861$ 495,372$ 162% 2017 9,638,861$ 7,300,561$ 2,338,300$ 1,288,670$ 538,490$ 128% 2016 9,303,554$ 6,915,953$ 2,387,601$ 1,254,484$ 557,477$ 132% 2015 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. Debt Service Requirements City of Carmel, Indiana PLEDGED‐REVENUE COVERAGE at December 31, 2022 Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. 1 Operating expenses do not include depreciation and amortization. 2 Coverage = Net Available Revenue/Debt Service Requirements. 3 The calculation of debt service principal payments for 2022 does not include debt service on a note in the amount of $17,745,000 due December 29, 2023. Management expects this note will be refinanced with a new note or longer term bond series. 155 Public Year-end Fiscal Median Per Capita Personal High School School Unemployment Year Population 1 Age 1, 2 Income 3 Income Graduation 4 Enrollment 4 Rate 5 2022 101,964 37.8 60,329 6,151,386,156 96.4% 16,072 0.9% 2021 100,777 37.8 81,885 8,252,167,281 97.0% 16,215 0.7% 2020 99,757 39.4 80,426 8,023,056,482 95.2% 16,664 3.2% 2019 101,068 39.5 78,343 7,917,970,324 97.6% 16,352 2.0% 2018 96,900 39.2 76,293 7,392,791,700 97.9% 16,147 2.4% 2017 91,065 39.2 72,005 6,557,135,325 97.5% 16,082 2.2% 2016 89,029 39.9 69,337 6,173,003,773 96.5% 15,954 2.6% 2015 88,713 38.5 67,040 5,947,319,520 95.8% 15,971 3.0% 2014 86,682 38.4 64,271 5,571,138,822 96.9% 15,912 3.6% 2013 85,929 38.7 60,857 5,229,381,153 96.3% 15,724 3.8% 2012 83,595 38.4 60,158 5,028,908,010 94.3% 15,750 5.1% Sources:1 U.S. Census Bureau U.S. Census Bureau, American Community Survey 1-Year Estimates 2020 - U.S. Census Bureau, 2020 Census 2 U.S. Census Bureau, 5-Year American Community Survey Median Age and City of Carmel Per Capita Income 3 Bureau of Economic Analysis Hamilton County Per Capita Income for years 2012-2020. 2021 estimate based on trend. 4 Indiana Department of Education Total graduation rate and corporate enrollment, Carmel Clay Schools 5 Bureau of Labor Statistics City of Carmel, Indiana DEMOGRAPHIC AND ECONOMIC STATISTICS Last Ten Fiscal Years 156 Percentage of Total City Company Industry Employees Rank Employment Carmel Clay Schools Public education 2,717 1 4.88% GEICO Auto insurance company 2,534 2 4.55% CNO Financial Group (formerly Conseco, Inc.) Life insurance holding company 1,200 3 2.15% American Funds/Capital Group Financial Services 975 4 1.75% KAR Global Automotive remarketing services 892 5 1.60% Resort Condominium Int’l. (RCI)Vacation exchange network and services 862 6 1.55% Midcontinent Independent System Operator (MISO) Electric companies 700 7 1.26% Next Gear Capital Auto deal inventory services 694 8 1.25% American Speciality Health Health plan management services 675 9 1.21% Percentage of Total City Company Industry Employees Rank Employment Carmel Clay Schools Public Education 2,384 1 5.54% Conseco Inc (now CNO Financial Group)Life insurance holding company 1,700 2 3.95% Liberty Mutual/Indiana Insurance Insurance company 1,200 3 2.79% GEICO Auto insurance company 1,200 4 2.79% Resort Condominium Int. (RCI)Vacation exchange network and services 1100 5 2.56% I.U. Health North Hospital Acute healthcare facility 1080 6 2.51% The Capital Group Financial services 1000 7 2.32% Next Gear Capital Auto deal inventory services 877 8 2.04% Midcontinent Independent System Operator (MISO)Electric companies 854 9 1.98% KAR Auction Automotive remarketing services 850 10 1.97% Sources: Hamilton County Economic Development Corporation City and Company Officials Carmel Clay School Corporation 2022 2013 City of Carmel, Indiana PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 157 2022 2021 2020 2019 2018 2017 2016 2015 General Government: Controller 6 6 7 0 0 0 0 0 City Clerk 5 5 5 9 9 9 8 6 Mayor 3 3 3 3 3 3 3 3 City Council 9 9 9 7 7 7 7 7 Board of Public Works 2 2 2 3 2 2 2 2 Plan Commission 9 9 9 9 9 9 11 11 Administration 4 4 4 4 3 3 2 4 City Court 4 4 4 6 6 7 7 7 Law Department 8 5 6 7 7 6 6 8 Community Services 24 24 24 23 23 21 22 22 Community Relations 10 9 9 7 7 6 5 4 Public Safety: Police Officers 139 136 129 118 114 114 109 117 Civilians 26 26 24 25 24 23 23 26 Fire Firefighters and Officers 174 164 160 154 146 147 153 166 Civilians 12 10 10 10 9 8 8 9 Culture and Recreation: Parks Department 65 53 53 69 63 65 64 62 Brookshire Golf 5 5 5 4 4 4 4 4 Utilities (Water and Sewer)106 106 105 105 104 104 103 109 Other Programs: Human Resources 4 5 4 4 3 3 3 3 Street 61 50 52 52 50 48 48 52 Engineering 15 15 15 15 15 15 15 16 Communications 16 14 14 14 14 16 15 13 Redevelopment 5 5 5 4 4 2 3 1 TOTAL 712 669 658 652 626 622 621 652 Source: City of Carmel Department Heads; Human Resources City of Carmel, Indiana CITY GOVERNMENT EMPLOYEES BY FUNCTION/ PROGRAM Last Ten Fiscal Years Note: Clerk-Treasurer split into City Clerk and Controller beginning in 2020. The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. 158 2022 2021 2020 2019 2018 2017 2016 2015 General Government: Community Services Permits issued 1,764 2,098 1,610 1,628 1,703 1,557 1,351 1,237 Residential construction permits 405 562 332 358 478 463 429 359 Total number of dwelling units 1,033 943 592 469 767 759 432 1,663 Building inspections performed 605 436 531 512 487 472 431 476 Public Safety: Police Incidents 83,156 87,550 89,155 91,436 83,740 85,500 83,955 83,904 Occurred incidents 4,106 3,755 3,635 4,548 4,361 4,010 4,270 4,330 Accidents 2,187 2,065 1,602 2,645 2,575 2,504 2,488 2,442 Total agency arrests 1,757 1,410 1,517 2,469 2,569 2,459 2,530 2,642 Fire Emergency medical responses 6,200 5,700 4,934 6,279 5,517 5,136 4,755 4,402 Fire-related calls for service 3,134 2,809 2,495 3,848 3,220 2,906 2,592 2,312 Number of fire stations 6 6 6 6 6 6 6 6 Culture and recreation: Number of parks and greenways 19 19 19 17 17 17 16 15 Total acres 389 577 550 540 530 505 505 505 Total trail miles 26.5 26.5 26.5 26.5 26.5 16 16 16 Streets: Number of "center line" miles streets 527 527 524 515 486 485 483 482 Number of roundabouts 144 146 138 131 122 115 111 97 Sewer: Miles of sanitary mains 265 265 252 265 254 243 243 243 Miles of sanitary sewer main cleaned/inspected 96.00 135.70 27.00 25.40 16.00 14.85 14.20 13.65 9.28 9.95 10.24 10.82 10.78 10.16 10.05 9.92 Water: Miles of watermains 579 573 555 550 565 538 538 538 Peak-day water demand (in millions of gallons) 26.2 23.2 22.5 24.0 21.5 22.0 21.0 19.0 Number of fire hydrants inspected/serviced 7,432 7,242 7,295 5,524 5,580 5,024 4,655 4,500 Source: City of Carmel Department Heads; Carmel Clay Parks Wastewater treatment flow per day (in millions of gallons) Note: The City is presenting its eighth ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. City of Carmel, Indiana OPERATING INDICATORS AND CAPITAL ASSET STATISTICS BY FUNCTION/ PROGRAM Last Ten Fiscal Years 159