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HomeMy WebLinkAbout2021 Annual Comprehensive Financial ReportCITY OF CARMEL INDIANA Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 Prepared by: CITY OF CARMEL, INDIANA ANNUAL COMPREHENSIVE FINANCIAL REPORT For the Fiscal Year Ended December 31, 2021 Board of Public Works and Safety 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 Discussion and Analysis 26–36 Basic Financial Statements: Government‐wide Financial Statements: Statement of Net Position 37 Statement of Activities 38 Fund Financial Statements: Governmental Funds: Balance Sheet ‐ Governmental Funds 39 Reconciliation of the Balance Sheet ‐ Governmental Funds to the Government‐wide Statement of Net Position 40 Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Funds 41–42 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Governmental Funds to the Government‐wide Statement of Activities 43 Proprietary Funds: Statement of Net Position ‐ Proprietary Funds 44–45 Statement of Revenues, Expenses, and Changes in Net Position ‐ Proprietary Funds 46–47 Statement of Cash Flows ‐ Proprietary Funds 48–49 Fiduciary Funds: Statement of Fiduciary Net Position - Fiduciary Funds 50 Statement of Changes in Fiduciary Net Position - Fiduciary Funds 51 Notes to the Basic Financial Statements 52–94 Required Supplementary Information: Other Post-Employment Benefits Plan Schedule of Changes in Net OPEB Liability and Related Ratios 95 Schedule of Net OPEB Liability 96 Notes to Schedules 97 1925 Police Officers' And 1937 Firefighters' Pension Plans: Schedule of Employer Contributions 98 Schedule of Net Pension Liability and Related Ratios 99 Schedule of Changes in Net Pension Liability 100 Notes to Schedules 101 Defined Benefit Pension Plans - Multiple Employer Plans: Schedule of the City's Proportionate Share of the Net Pension Liability 102–103 Schedule of City Contributions 104 Notes to Schedules 105 City of Carmel, Indiana Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 TABLE OF CONTENTS Pages Budgetary Comparison Schedules - General Fund 106–109 Notes to the Required Supplementary Information - Budgetary Comparison Schedules 110 Supplementary Information: Nonmajor Governmental Funds - Information 111–114 Combining Balance Sheet - Nonmajor Governmental Funds: Special Revenue Funds 115–121 Capital Projects Funds 122–126 Debt Service Funds 127 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ‐ Nonmajor Governmental Funds: Special Revenue Funds 128–134 Capital Projects Funds 135–139 Debt Service Funds 140 Budgetary Comparison Schedules ‐ Nonmajor Funds 141–144 Fiduciary Funds - Information 145 Combining Statement of Fiduciary Net Position - Pension Funds 146 Combining Statement of Fiduciary Net Position - Custodial Fund 147 Combining Statement of Changes in Fiduciary Net Position - Pension Funds 148 Combining Statement of Changes in Fiduciary Net Position - Custodial Fund 149 STATISTICAL SECTION Financial Trends: Net Position by Component 151 Changes in Net Position 152–153 Fund Balances ‐ Governmental Funds 154 Changes in Fund Balances ‐ Governmental Funds 155–156 Revenue Capacity: Assessed Value and Estimated Actual Value of Taxable Property 157 Property Tax Rates - Direct and Overlapping Governments 158 Principal Property Taxpayers 159 Property Tax Levies and Collections 160 Debt Capacity: Legal Debt Margin Information 161 Ratios of Outstanding Debt by Type 162 Ratios of General Bonded Debt Outstanding 163 Direct and Overlapping Governmental Activities Debt 164 Pledged‐Revenue Coverage 165 Demographic and Economic Information: Demographic and Economic Statistics 166 Principal Employers 167 Operating Information: City Government Employees by Function/ Program 168 Operating Indicators and Capital Asset Statistics by Function/ Program 169 City of Carmel, Indiana Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 TABLE OF CONTENTS (CONTINUED) INTRODUCTORY SECTION Introductory Section: Letter of Transmittal Certificate of Achievement – Government Finance Officers Association City of Carmel Organization Chart List of Principal Officials This page has been intentionally left blank. June 30, 2022 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, 2021. 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 2021 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, 2021, 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 was ranked as the No. 2 best place to live in the U.S. by Money in 2021-2022, and is consistently ranked among the best places to raise a family and among the safest cities by a variety of rating websites and agencies. The proximity of Carmel to Indianapolis provides increased employment and higher education opportunities for residents. City Structure In 2021, 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. 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. 9 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 140 Fraternal Order of Police Lodge #185 Police 171 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. 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. The Signature at Carmel redevelopment project broke ground and will bring a large mixed-use presence to West Main Street, including 16,000 square feet of ground floor retail space. This $78 million investment will include apartments, owner-occupied condos, office/retail space and a public parking garage. In the heart of the Arts & Design District, the new 1st on Main project also broke ground on another mixed-use project that will bring more retail, residential and free public parking to Main Street. 10 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 is in the process of building a new campus with a full-service hospital. Goodman Campbell Brain and Spine moved into a new $17.6-million facility in May 2019 along the Meridian Corridor. In May 2019, Medistar Corporation and Post Acute Medical LLC announced the development of a 60,000-square- foot rehabilitation hospital along the Meridian Corridor. A $47-million national headquarters for Zotec Partners opened in 2021 and is expected to create 300 additional jobs by 2022. Franciscan Health Carmel expanded with a new $120-million development, Franciscan Health Orthopedic Hospital. The 235,000-square-foot facility opened in April 2022 and was developed by Meridian Ortho Development, LLC. 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, two major mixed-use developments have been constructed and opened, “The Olivia on Main,” a $30-million development that 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. Old Town Companies is developing a project along Smoky Row Road in the City’s central corridor, just west of the Monon Greenway. The project, expected to be completed by 2024, is a $135-million mixed-use development which will consist of retail space, office space, single-family homes, apartments, townhomes, and condominiums. 11 IMPACT OF COVID-19 PANDEMIC The City received $3,761,460 from the U.S. Treasury on June 14, 2021, 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. A second payment of $3,761,460 will be received in 2022, not earlier than twelve months after the first payment. All appropriated money remains available through December 31, 2024. The City received $414,648 from FEMA in 2021 for Covid-19 Public Assistance conducted by the Fire Department. To date in 2022, the City has received $470,400 from FEMA for Covid-19 testing and $52,868 for Covid-19 Public Assistance conducted by the Fire Department. 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 400,000 visitors in 2021. The Christkindlmarkt was voted the No. 1 Best Holiday Market in North America by USA Today readers in 2021. 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 livesporting events. The Carmel Clay Public Library is one of the busiest public libraries in the State of Indiana, serving resident of the City. In 2021, the library began construction of new library and campus on Main Street, a $40-million expansion that is expected to include 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. In addition to the new facility, the library operates a Community Tech Center further west on Main Street 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. 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 13 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. In 2021, Lauth began construction on 1st on Main, a $40 million project located at the northeast corner of Main Street and Range Line Road. This project will include 35 luxury apartment units, 8 luxury condominiums, a four-story office building, retail space, a free public parking garage and a community gathering plaza featuring the City’s Rotary Clock. 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 rapid growth in 2022 for both residential and business sectors. Additional public spaces are planned as well. Another major mixed-use development, known as the Proscenium, is nearly completed in a redevelopment area 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 will welcome the arrival of 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 Indiana State Road 38 north of the City. Additionally, the creation of new interchanges has helped spur additional economic development on Main Street. 14 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 2021, this transformation continued 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 the total expenditures of any major category must be approved by the City Council. 15 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, 2020. 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 ACKNOWLEDGEMENTS The preparation of this report involved many dedicated people across the organization. In particular, we would like to express appreciation to the staff of the Controller’s Office, whose support and dedication made the report possible. We would like to express our appreciation to FORVIS for their professionalism and support. Furthermore, we would like to thank C.L. Coonrod and Company, CPAs, for consulting on the application of GAAP and other technical requirements of the report. Finally, we would like to thank the City Council, without whose leadership and support the preparation and results of this report would not have been possible. Respectfully submitted, James Brainard Mayor Ann Bingman, CPA Controller 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, 2020. 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 Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented toCity of Carmel Indiana For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2020 Executive Director/CEO 2021 ORGANIZATIONAL CHARTCity of Carmel, IndianaChief Deputy Clerk of City BusinessFinancial SpecialistPart-timeDeputy Clerk of Court BusinessDeputy DirectorEXECUTIVEBrookshire GC ManagerCourse ManagementGrounds MaintenanceFood/ Beverages OperationsClub House/ Pro Shop OperationsAdministrative AssistantHuman Resources DirectorEmployee Benefits ManagerEmployment/ Training CoordinatorOffice AdministratorADMINISTRATIONInformation Services/ Communications DirectorOffice AdministratorCommunications SupervisorSystems SupervisorGIS CoordinatorNetwork AdministratorCommunications Technician IGIS Technician INetwork Applications/ AnalystDatabase AdministratorProgrammerREDEVELOPMENTDirectorDeputy DirectorFinance ManagerOffice AdministratorCOMMUNITY RELATIONS & ECONOMIC DEVELOPMENTPublic RelationsMedia RelationsSpecial Events CoordinationEconomic DevelopmentTransportation DevelopmentENGINEERINGCity EngineerAsst. City EngineerConstruction ManagerEngineering AdministratorPlan Review CoordinatorConstruction InspectorStorm Water AdministratorRight of Way InspectorPublic Works CoordinatorFIREFire ChiefDeputy ChiefBattalion (Chief) -Division Head (Chief) - Accreditation ManagerExecutive OfficerCaptainLieutenantEngineerFirefighterQuartermasterMechanicAdministrative AssistantChaplainPart-time MembersLAWCorporation CounselAsst. Corporation CounselExecutive/ Legal SecretaryAdministrative Assistant I & IIDeferral Program CoordinatorPOLICEPolice ChiefAsst. ChiefMajorLieutenantSergeantPatrol Officer 1st and 2nd Class, ProbationaryCrime Scene/ Evidence TechnicianMechanic IQuartermaster/ Fleet ManagerUTILITIESDirectorOperations ManagerPlant ManagerManager of Water QualityDistribution/ Collections ManagerElectrical/ Controls EngineerSenior Utilities AccountantAsst. Plant ManagerForemanHazardous Waste CoordinatorCustomer Service ManagerSTREETSStreet CommissionerOperations ManagerSkilled Labor/ Foreman ISkilled Labor/ Foreman IIOffice AdministratorGIS Technician IAdministrative Assistant ISkilled LaborLEGISLATIVECouncil MembersJUDICIALClerk of Court AdministratorAsst. Clerk of Court AdministratorDeputy Clerk I&IIBailiffADMINISTRATIVEAccounts Payable AdministratorPayroll AnalystDirectorCity ClerkChief Deputy Clerkof Court BusinessCity ControllerFinancial AnalystAccounts Payable AdministratorDeputy Clerk of City BusinessMayorJudge19 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, 2021 (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 Sue Finkam Michael Ruggiero Ted Spearman Carmel Redevelopment Authority (Appointed Officials) Robert Bush, President Jay Brill, Secretary/Treasurer Lea Lockhart Sasena 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 22 23 Independent Auditor’s Report Audit Committee City of Carmel, Indiana Carmel, Indiana Report on the Audit of the Financial StatementsRe 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, 2021, 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, based on our audit and the report of other auditors, 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 of Carmel, Indiana, as of December 31, 2021, 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 represent 1%, 58%, and .2%, respectively, of the assets, liabilities and net position of the total governmental activities of the City as of December 31, 2021. Those statements were audited by other auditors whose report has been furnished to us, and our opinions, insofar as it relates to the amounts included for the governmental activities, are 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. 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. 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. 24 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 to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed. Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial 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 a reasonable 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. 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 as listed in the table of contents 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 auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. 25 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 auditing standards generally accepted in the United States of America. 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 30, 2022, 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 30, 2022 Financial Highlights Overview of the Financial Statements City of Carmel, Indiana MANAGEMENT DISCUSSION AND ANALYSIS For the Fiscal Year Ended December 31, 2021 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, 2021. 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 37 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 $473,667,675 (net position). •The City's total net position increased $38,020,210 from the prior fiscal year. The main reason for this improvement was the unusually favorable results from pension investments. 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 $241,853,379, an increase of $117,738,684 in comparison with the prior year. Much of the increase represents bond proceeds. Approximately $22,154,293 of this amount (9.2%) 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 $28,881,023, or approximately 30.4% of total General Fund expenditures. • The City's total outstanding long-term liabilities increased by $83,365,801 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. 26 The government-wide financial statements begin on page 37 of this report. The basic governmental fund financial statements begin on page 39 of this report. The basic proprietary fund financial statements begin on page 44 of this report. The fiduciary fund financial statements begin on page 50 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 52 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-two individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund, Redevelopment Commission Fund, Redevelopment Authority Debt Service Fund, Bond Bank Project Fund, and 2021 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 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 473,667,675$ 2,254,154 118,369,621$ 34,566,956 2,069,280 32,312,802 323,120,376$ 435,647,465$ (27,625,888) 11,968,099 514,830,242 369,685,144 6,098,406 46,309,663 518,721,235 Net investment in capital assets 40,211,257 4,151,380 7,816,719 138,083,697 149,036,091 376,746,545 Governmental Activities 281,447,802$ 969,579,445 1,251,027,247 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 $473,667,675 at the close of the fiscal year. 972,643,978 1,400,932,825 267,954,454 279,555,288 concerning the City's progress in funding its obligation to provide pension and other post-employment benefits (OPEB) to its employees. Required supplementary information can be found beginning on page 95 of this report. 23,216,203$ 2020 160,334,393$ 137,118,190$ 2021 20212021 303,656,748$ Business-type Activities 2020 2020 987,098,064 Total 22,208,946$ 876,379,628 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 115 of this report. 1,109,762,168 1,249,134,733 40,464,351 1,552,791,481 1,350,754 1,240,598,432 33,780,803 18,058,156 20,872,785 176,026,081 38,520,748 795,713,811 969,039,908 894,038,684 17,659,056 2,516,845 173,326,097 175,842,942 15,541,311 3,213,729 1,052,405,709 1,073,278,494 179,239,810 291,170,657 32,430,049 301,764,234 1,943,603 811,255,122 355,298,054$ (68,251,242) 112,527,089$ (46,699,892) (32,920,624) (79,620,516) 16,694,353 (95,877,130) 14,625,073 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 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. 8,187,979 23,524,710$ The City reported significant negative unrestricted net position of $46,699,892 in governmental activities. This deficit is due in part to unfunded pension and retiree healthcare liabilities of $45.3 million, as follows: 8,976,936 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 $79,620,516. 45,278,826$ 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. 4,589,201 (200)- 200 400 600 Millions City of Carmel Net PositionDecember 31, 2021 Unrestricted Restricted Net investment in capital assets 29 The following chart displays the revenue composition for the City's Governmental Activities funds. Governmental Activities. During the current fiscal year, net position for governmental activities increased $32,177,678 from the prior fiscal year for an ending balance of $355,298,054. The increase of 9.06% resulted in part from unusually favorable gains from pension trust investments. The following chart displays Program Revenues and Expenses by function for the City's Governmental Activities. - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 General government Public safety Streets, infrastructure Economicdevelopment Culture and recreation Interest on long-termdebt CITY OF CARMEL Program Revenues vs. ExpensesFor the Fiscal Year Ended December 31, 2021 Program Expenses Program Revenues Property taxes 29.39% Income tax 26.63% Tax incremental revenue 20.39% Charges for services 8.61% Operating grants and contributions 1.07% Capital grants and contributions 1.54% Unrestricted investment earnings 0.11%Other 12.26% City of Carmel Governmental Activities RevenueFor the Fiscal Year Ended December 31, 2021 30 City of Carmel's Changes in Net Position REVENUES: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues: Property taxes Income tax Other Total revenues EXPENSES: General government Public safety Streets, infrastructure Water distribution Sewer collection Economic development Culture and recreation Interest on long-term debt Other Total expenses Transfers NET POSITION - beginning Restatement* NET POSITION - ending 2,327,172 4,596,617 - - 2,327,172 - 10,567,339 109,991,221 112,527,089$ 5,593,677 1,320,506 32,177,678 38,020,210 Unrestricted investment earnings Tax incremental revenue 44,334,410 1,912,211 - 473,667,675$ 435,647,465$ Increase (decrease) in net position 355,298,054$ 323,120,376 331,561,593 112,527,089 - 112,527,089 427,028,412 435,647,465 2,535,868 118,369,621$ - 317,037,191 323,120,376 (14,524,402) (180,201) - (14,704,603) NET POSITION - beginning, adjusted - 157,199 897,178 3,338,803 57,887,325 44,412,562 - 63,905,027 236,719 63,533,389 7,688,348 4,324,469 36,446,525 2020 2020 30,857,172 20,141,103 189,888,126 189,256,977 5,059,713 2021 20,130,070 43,870,342 - - 21,799,363 48,809,731 20,130,070 - - (1,912,211) 6,083,185 - 8,619,053 - 5,842,532 4,170,974 38,020,210 441,733,015 32,871,669 11,946,131 31,658,869 323,120,376$ 220,915,846 21,799,363 43,870,342 10,567,339 435,647,465 110,171,422 9,859,506 (1,320,506) - - 7,163,038 Change in net position before transfers - - - - 5,593,677 5,059,713 - - 4,448,079 30,697,409 220,585,535 - 393,918 357,188 56,351,024 26,662,617 220,114,149 34,218,709 223,599 35,145,488 34,218,709 - 21,888,537 8,619,053 9,859,506 - 11,946,131 34,750,667 20,141,103 34,750,667 32,871,669 - - 31,926,796 11,027,151 63,905,027 4,181,014 - 46,190,290$ 2021 2020 53,605,541 - - 56,351,024 (76,768) 38,821,907 - 194,059,100 31,926,796 44,334,410 258,936,056 - 57,887,325 Total 49,763,089$ 30,383,687$ 18,709,961$ 31,053,128$ 15,806,603$ 2021 Governmental Activities 4,596,617 8,505,483 Business-type Activities 36,446,525 48,809,731 1,120,777 53,605,541 26,585,849 63,533,389 229,204,588 22,245,725 44,412,562 Food and beverage tax 2,712,115 2,153,220 - - 2,712,115 2,153,220 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 At December 31, 2021, the City's governmental funds reported combined fund balances of $241,853,379, an increase of $117,738,684 in comparison with the prior year. Much of the increase is due to proceeds from bond issues. Approximately 9.2% of the combined fund balances, $22,154,293, 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 ($207,974,077), it is committed for particular purposes ($4,998,279), or it is assigned for particular purposes ($6,726,730). 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. $118,369,621. The total increase in net position for business-type activities (water and sewer) was $5,842,532 or 4.9% from the prior fiscal year, indicating a relatively stable and healthy net position. 31,658,869 38,821,907 - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 30,000,000 35,000,000 40,000,000 45,000,000 CITY OF CARMEL Business-Type Revenues vs. ExpensesFor the Fiscal Year Ended December 31, 2021 Expenses Revenues Charges for services 80.00% Capital grants and contributions 19.81% Other -0.20% City of Carmel Business-Type Activities IncomeFor the Fiscal Year Ended December 31, 2021 32 Fluctuations in grant revenues mainly reflect the unique, one-time grant programs related to the national health emergency. The reduction in culture and recreation expense is due primarily to the refunding of certain bonds, originally issued for culture and recreation projects, but now redirected in part to other functions. General Fund Budgetary Highlights The most significant differences between estimated revenues and actual revenues were as follows: Revenue source Property tax Income tax Licenses and permits Intergovernmental Charges for services Fines and forfeits Miscellaneous Total 2,264,838 12,737,478 109,373,580$ the original 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 $28,168,884 increase in fund balance during the year, due primarily to bond proceeds and certain payments received from developers, which put the overall fund balance at $40,411,325. 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 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 $40,387,223 increase in fund balance during the year, due to bond proceeds received, which put the overall fund balance at $40,387,223. (2,162,935)$ (2,010,699) 41,832,811$ Final - 43,995,746$ (163,885) 50,335,437 108,296 3,400,828 292,965 Difference Unrestricted net position of the Water Utility at the end of the year was a deficit of $27,824,161; for the Sewer Utility, it was a deficit of $5,096,465. Water Utility net position, before capital contributions and transfers, decreased $1,830,648. 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. Actual Revenues The fund balance of the City's General Fund increased by $1,307,227 during the year, indicating a budget variance within approximately 1% of revenues and expenditures, which is considered reasonable. Original budget compared to final budget. During the year, there was no need for any significant amendments to increase 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 $22,154,293 while the total fund balance was $28,881,023. As a measure of the General Fund's liquidity, it may be useful to compare both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents 23.3% of total general fund expenditures while total fund balance represents 30.4% of that amount. Final Estimated Revenues 2,475,030 44,619,726 5,715,711 (2,475,030) Investment earnings, subfund transactions, and other - 109,044,560$ 411,626 (1,250,606) 329,020$ 1,390,129 2,264,838 The revenue excesses and shortfalls in the above revenue sources net to less than 1% and were not considered problematic in the aggregate. 13,988,084 The Bond Bank Project Fund, a major fund, accounts for debt issued by the Carmel Bond Bank, a component unit which aggregates multiple City debt issuances to enhance transaction cost efficiency. The Bond Bank Project Fund received transfers from the funds responsible for servicing the debt and paid out principal and interest of $22,029,095. It also retains some debt service reserves. 456,850 The Redevelopment Authority Debt Service Fund, a major fund, had a $51,824,210 increase in fund balance during the current fiscal year, representing normal variations in the amount of debt service due each year. The ending balance was $76,406,605, all of which was restricted for debt service. Final General Fund Budget Compared to Actual Results 519,922 33 The differences by department between estimated expenditures and actual expenditures were as follows: Department Controller Clerk Mayor's Office City Council Board of Public Works Administration Brookshire Golf Course Building Operations City Court Law Department Community Services Personnel/ Human Resources Information Systems City Property Maintenance Public Affairs/ Community Relations Fire Department Police Department Communication Center Parks Department Redevelopment Department Other Total Capital Assets and Debt Administration Capital Assets Land Construction in progress Buildings Machinery, equipment, and vehicles Infrastructure Water distribution system Sewer system Total Additional information on the City's capital assets can be found in Note II.C. on pages 60–61 of this report. The under-budget conditions mostly reflect the City’s policy of fully funding full staffing, with no provision for vacancies, and fringe benefits at the highest potential cost. Actual expenditures tend to be less. 352,738 615,970 (690,063) 352,738 1,004,911 - 4,500 (999,777) 893,575 739,923 983,820$ 969,579,445$ - (153,652) 5,049,819 26,290,175 279,555,288$ 431,852,064 842,464 Governmental Activities 1,188,351$ Difference 523,089 (216,153) (335,409) (204,531)$ 4,645,931 (65,176) Final Estimated Expenditures (572,922) 4,981,340 1,484,238 (410,294) 2,977,159 (480,334) 3,297,224 16,221,182 (10,102) 4,414,580 30,387,037 3,835,724 27,660,826 5,252,130 30,621,440 3,870,146 1,928,473 626,311 4,050,042 1,694,974 (142,990) 3,457,493 Final Actual Expenditures (2,717,541) (10,129,146)$ 4,715,876 (880,152) 24,943,285 4,112,426 3,865,245 784,039 (1,139,704) 588,265 - 106,711,887$ 792,005 116,841,033$ 16,231,284 1,894,532 758,960 (234,403) (4,500) (666,880) 2021, amounts to $1,249,134,733 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery, equipment, vehicles, park facilities, roads, highways, bridges, and the water treatment plant. The total increase in capital assets for the current fiscal year was 0.69%. Capital assets. The City's investment in capital assets for its governmental and business-type activities as of December 31, (549,335) (7,966) 1,261,593 48,884,946 - - 163,977,184 - 4,130,981$ 156,068,458 431,852,064 164,233,523 35,989,902 200,587,544 23,128,405 348,729,813 972,643,978$ In 2021, 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 2021 for streets and streetscapes as well as enhanced headquarters for the police department and improved emergency communications facilities. The City also completed a major economic development project in the center of the city. 163,977,184 200,587,544 23,128,405 348,729,813 2020 201,759,087$ - 238,560,012 164,233,523 Business-type Activities 4,554,522$ 202,570,110 Total 63,856,387 197,628,106$ - - 207,908,254 61,882,297 2020 63,856,387 2021 - 20212021 1,240,598,432$ 61,882,297 200,899,962$ - 207,908,254 26,290,175 - 1,249,134,733$ 107,183,512 196,345,440$ 267,954,454$ 2020 34 Outstanding Long-Term Liabilities Unamortized premium Compensated absences OPEB Net pension liability Capital leases Total Additional information on the City's long-term debt can be found in Note II.D. on pages 61–70 of this report. 386,052 54,507,826 43,779,354 2021 415,270 2020 At the end of the current fiscal year, the City had total bonded debt outstanding of $927,819,022. Of this amount, $624,899,569 is debt backed by an unlimited ad valorem property tax levy, $91,635,000 is debt backed by income tax, $42,125,000 is debt backed by tax increment, and $169,159,453 is debt backed by utility revenues. The remainder of the City's long-term obligations comprises post- employment benefit debt, compensated absences, contract purchases, and capital leases. Governmental Activities Business-type Activities On September 14, 2021, the City issued, through its local public improvement bond bank, $24,215,000 of its Taxable Redevelopment District Bonds, Series 2021. The bonds were issued to finance the cost of certain public improvement projects, including land acquisition, site preparation, other on-site improvements, road and utility infrastructure improvements, utility relocation, parking facilities and other local public improvements. The City has pledged an ad valorem property tax levied on all taxable property within the City Redevelopment District to repay the bonds. The bonds are further secured by a debt service reserve. Contract purchases 8,053,173 8,737,615 - - 8,053,173 8,737,615 4,218,078 3,655,129 797,541,453$ 1,827,642 11,494,812 173,836,622$ 1,640,943 836,493,661$ 44,194,624 2,338,167 510,525 11,295,262 971,378,075$ 10,266,286 26,487,196 33,958,343 30,705,274 176,498,376$ 10,206,016 1,054,940,890$ 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”. 2021 54,121,774 163,948,374$ 758,659,569$ 2021 3,611,107 23,524,710 37,613,472 2020 169,159,453$ 1,089,246 The City's total debt outstanding increased by $83,562,815 (8.60%) during the current fiscal year. 878,442,514$ 2,062,886 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. Bonds 21,754,116 1,228,526 23,395,059 27,135,817 472,295 On September 14, 2021, the City issued, through its local public improvement bond bank, $54,225,000 of its Ad Valorem Property Tax Lease Rental Bonds, Series 2021. The bonds were issued to finance the cost of the acquisition, design, construction, reconstruction, resurfacing, improvement and/or equipping of road and street projects. The City has pledged an ad valorem property tax levied on all taxable property within the City Redevelopment District to repay the bonds. On September 14, 2021, the City issued, through its local public improvement bond bank, $10,550,000 of its Taxable Local Income Tax General Obligation Bonds, Series 2021. The bonds were issued to provide funds for the acquisition, design, construction and/or equipping of a new police station parking garage. The City has pledged both its future distributions of local income tax and an ad valorem property tax to repay the bonds. 672,545,287$ 927,819,022$ Long-term Debt. On September 14, 2021, the City issued, through its local public improvement bond bank, $32,380,000 of its Local Income Tax Lease Rental Bonds, Series 2021. The bonds were issued to finance the acquisition of property, construction, renovation, installation, and equipping of buildings and other related improvements comprising an expansion to the police headquarters and relocating the related information technology facility into a new facility and funding the renovation, installation and equipping of that facility. The City has pledged both its future distributions of local income tax and an ad valorem property tax to repay the bonds. 2020 2,535,181 Total 35 Economic Factors and Next Year's Budgets and Rates Request for Information This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Controller, One Civic Square, Carmel, Indiana 46032. • The City enjoys favorable relationships with employee unions and no history of significant contract disputes. The following economic factors currently affect the City and were considered in developing the 2022 fiscal year budget. •The unemployment rate for the City was 0.7% at the close of the fiscal year, which is significantly below the national rate of 3.9% and also below the rate of nearby communities. •Recent trends have been favorable with regard to increases in taxable assessed value and increases in taxable income. 36 Governmental Activities Business-Type Activities Total Cash and investments 242,909,508$ 6,918,851$ 249,828,359$ Receivables (net of allowances for uncollectibles): Accounts 671,692 629,693 1,301,385 Taxes 22,098,453 - 22,098,453 Other - 1,646,189 1,646,189 Internal balances 348,989 (348,989) - Inventories - 836,229 836,229 Prepaid expenditures 1,059,853 25,000 1,084,853 Cash, restricted for debt service - 12,501,973 12,501,973 Net pension asset 14,359,307 - 14,359,307 Capital assets: 303,528,952 53,439,468 356,968,420 Other capital assets, net of depreciation 666,050,493 226,115,820 892,166,313 Total assets 1,251,027,247 301,764,234 1,552,791,481 DEFERRED OUTFLOWS OF RESOURCES: Bond refunding 17,453,102 - 17,453,102 Pensions 18,738,821 1,586,123 20,324,944 Other post-employment benefits 2,328,825 357,480 2,686,305 Total deferred outflows of resources 38,520,748 1,943,603 40,464,351 Accounts payable 3,976,166 1,669,754 5,645,920 Accrued interest payable 9,011,550 726,574 9,738,124 Claims payable 1,072,881 - 1,072,881 Other current payables - 147,664 147,664 Accrued payroll and withholdings payable 1,535,573 155,137 1,690,710 Compensated absences 2,062,886 472,295 2,535,181 Customer deposits - 42,305 42,305 Noncurrent liabilities: Due within one year: Bonds and contract purchases payable 34,785,245 6,381,466 41,166,711 Capital leases payable 2,798,383 334,697 3,133,080 OPEB liability 843,870 129,534 973,404 Due in more than one year: Bonds and contract purchases payable 786,049,271 163,164,039 949,213,310 Capital leases payable 7,467,903 893,829 8,361,732 Net pension liability 21,754,116 1,640,943 23,395,059 OPEB liability 22,680,840 3,481,573 26,162,413 Total liabilities 894,038,684 179,239,810 1,073,278,494 DEFERRED INFLOWS OF RESOURCES: Deferred revenue 2,457,603 - 2,457,603 2008 bond call rights waiver - 2,486,791 2,486,791 Pensions 30,791,355 2,542,883 33,334,238 Other post-employment benefits 6,962,299 1,068,732 8,031,031 Total deferred inflows of resources 40,211,257 6,098,406 46,309,663 Net investment in capital assets 369,685,144 149,036,091 518,721,235 Restricted: General government 507,955 - 507,955 Public safety 16,272,013 - 16,272,013 Streets and other infrastructure 5,943,057 2,254,154 8,197,211 Economic development 2,224,163 - 2,224,163 Culture and recreation 7,365,614 - 7,365,614 Unrestricted (46,699,892) (32,920,624) (79,620,516) Total net position 355,298,054$ 118,369,621$ 473,667,675$ 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, 2021 ASSETS: Not being depreciated: land, improvements, and construction in progress 37 Expenses Governmental Activities Business-Type Activities Total FUNCTIONS/PROGRAMS: Governmental activities: General government 34,218,709$ 131,588$ 1,134,894$ -$ (32,952,227)$ -$(32,952,227)$ Public safety 56,351,024 1,945,203 1,192,278 (53,213,543) - (53,213,543) Streets and other infrastructure 48,809,731 4,763,870 - 2,154,150 (41,891,711) - (41,891,711) Economic development 32,871,669 1,595,688 - 1,184,653 (30,091,328) - (30,091,328) Culture and recreation 11,946,131 10,273,612 - - (1,672,519) - (1,672,519) Unallocated interest expense 5,059,713 - -- (5,059,713) -(5,059,713) Total governmental activities 189,256,977 18,709,961 2,327,172 3,338,803 (164,881,041) -(164,881,041) Business-type activities: Water 21,799,363 20,017,196 - 5,775,390 - 3,993,223 3,993,223 Sewer 9,859,506 11,035,932 -1,912,958 -3,089,384 3,089,384 Total business-type activities 31,658,869 31,053,128 -7,688,348 -7,082,607 7,082,607 TOTAL PRIMARYGOVERNMENT 220,915,846$ 49,763,089$ 2,327,172$ 11,027,151$ (164,881,041) 7,082,607 (157,798,434) GENERAL REVENUES AND TRANSFERS:General Revenues: Property tax 63,905,027 - 63,905,027 Income tax 57,887,325 - 57,887,325 Food and beverage tax 2,712,115 - 2,712,115 Tax incremental revenue 44,334,410 - 44,334,410Unrestricted investment earnings 236,719 157,199 393,918 American Rescue Plan - lost revenue replacement 168,963 -168,963 Other 26,493,654 (76,768) 26,416,886 Transfers 1,320,506 (1,320,506) - Total general revenues and transfers 197,058,719 (1,240,075) 195,818,644 CHANGE IN NET POSITION 32,177,678 5,842,532 38,020,210 NET POSITION: beginning 323,120,376 112,527,089 435,647,465 NET POSITION: ending 355,298,054$ 118,369,621$ 473,667,675$ City of Carmel, Indiana STATEMENT OF ACTIVITIES For the Fiscal Year Ended December 31, 2021 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 38 City of Carmel, Indiana BALANCE SHEET GOVERNMENTAL FUNDS December 31, 2021 General Fund Redevelopment Commission Fund Redevelopment Authority Debt Service Fund Bond Bank Project Fund 2021 Project Fund Total Nonmajor Funds Total ASSETS: Cash and investments 23,914,427$ 40,452,107$ 76,406,605$ 12,276,350$ 40,387,223$ 49,472,796$ 242,909,508$ Receivables: Accounts 584,278 - - - - 87,414 671,692 Taxes: Property 1,775,417 - - - - 708,149 2,483,566 Income 19,614,887 - - - - - 19,614,887 Due from other governmental funds - - - - - 68,108 68,108 Due from related utility - -- --348,989 348,989 TOTAL ASSETS 45,889,009 40,452,107 76,406,605 12,276,350 40,387,223 50,685,456 266,096,750 LIABILITIES: Accounts payable 1,350,655 40,782 - - 2,584,729 3,976,166 Claims payable - - - - - 1,072,881 1,072,881 Due to other funds - - - - - 68,108 68,108 1,305,285 - - - -230,288 1,535,573 Total liabilities 2,655,940 40,782 - -- 3,956,006 6,652,728 DEFERRED INFLOWS OF RESOURCES:Deferred revenue - - - - - 2,457,603 2,457,603 Unavailable revenue 14,352,046 - - - -780,994 15,133,040 Total deferred inflow of resources 14,352,046 - - - -3,238,597 17,590,643 FUND BALANCES: Restricted:General government - - - - - 507,955 507,955 Public safety - - - - - 1,912,706 1,912,706 Highways and streets - - 19,028,044 12,276,350 40,387,223 26,141,365 97,832,982 Drainage and other capital assets - - - - 166,375 166,375 Economic development - 40,411,325 38,800,252 - 2,224,163 81,435,740 Culture and recreation - - 18,578,309 - - 7,540,010 26,118,319 Debt service - -- - - - - Committed: General government - - - - - 1,032,827 1,032,827 Public safety - - - - - 2,383,614 2,383,614 Highways and streets - - - - - 870,603 870,603 Economic development - - - - - 711,235 711,235 Assigned: General government 4,070,750 - - - - - 4,070,750 Public safety 2,417,827 - - - - - 2,417,827 Economic development 235 - - - - - 235 Culture and recreation 237,918 - - - - - 237,918 Unassigned 22,154,293 - - - --22,154,293 Total fund balances 28,881,023 40,411,325 76,406,605 12,276,350 40,387,223 43,490,853 241,853,379 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES 45,889,009$ 40,452,107$ 76,406,605$ 12,276,350$ 40,387,223$ 50,685,456$ 266,096,750$ The notes to the financial statements are an integral part of this statement. Accrued payroll withholdings payable 39 Fund Balance - governmental funds 241,853,379$ 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.1,059,853 Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds: Land and construction in progress 303,528,952$ Machinery, equipment, and vehicles 903,153,880 Accumulated depreciation (237,103,387) 969,579,445 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 2,483,566$ Income tax 11,992,351 Ambulance fees 72,845 Supplemental ambulance fees 584,278 15,133,040 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 (21,754,116)$ Other post-employment benefit liability (23,524,710) (45,278,826) The net pension asset is not an available resource and, therefore, is not reported in the funds.14,359,307 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 17,453,102$ Pension-related inflows (30,791,355) OPEB-related inflows (6,962,299) Pension-related outflows 18,738,821 OPEB-related outflows 2,328,825 767,094 Other noncurrent liabilities are not due and payable in the current period and, therefore, are not reported in the funds: Compensated absences (2,062,886)$ Accrued interest payable (9,011,550) Unamortized value of capital leases (10,266,286) Unamortized premiums on bonds outstanding (54,121,774) Unamortized principal on bonds outstanding (766,712,742) (842,175,238) Net position of governmental activities 355,298,054$ 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, 2021 40 General FundRedevelopment Commission FundRedevelopment Authority Debt Service FundBond Bank Project Fund2021 Project FundTotal Nonmajor FundsTotalREVENUES:Property tax41,832,811$ -$ -$ -$ -$ 21,450,567$ 63,283,378$ Income tax50,521,352 - - - - - 50,521,352 Food and beverage tax2,712,115 - - - - - 2,712,115 Other local tax3,672,926 38,593,790 - - - 2,067,694 44,334,410 Charges for services1,390,129 414,550 - - - 16,905,266 18,709,945 Investment income127,172 402 1,776 430 280 106,659 236,719 Licenses and permits3,028,712 - - - - 29,730 3,058,442 Fines and forfeits292,965 - - - - - 292,965 Intergovernmental:Grants1,178,649 - - - - 3,471,636 4,650,285 State shared revenue851,928 - - - - 6,391,779 7,243,707 Other148,236 - - - - - 148,236 Contributions- - - - - 551,408 551,408 Other1,582,005 6,405,142 - 5,038,159 - 1,015,637 14,040,943 Total revenues107,339,000 45,413,884 1,776 5,038,589 280 51,990,376 209,783,905 EXPENDITURES:Current:General government 27,095,315 - - - - 3,638,581 30,733,896 Public safety55,233,909 - - - - 1,948,179 57,182,088 Streets and other infrastructure1,071,597 - - 4,955,834 - 21,782,833 27,810,264 Economic development786,806 7,296,043 - - - 454,511 8,537,360 Culture and recreation6,148,707 - - - - 7,888,960 14,037,667 Debt service:Principal745,000 1,774,442 19,482,471 8,960,000 - 3,021,968 33,983,881 Interest30,856 909,227 10,717,961 13,069,095 - 928,946 25,656,085 Bond issuance costs- - - 1,181,841 34,288 - 1,216,129 Capital outlay:General government135,715 - 3,854,605 - - 234,272 4,224,592 Public safety2,183,915 - -- 1,412,388 - 3,596,303 Streets and other infrastructure- - - - - 17,459,764 17,459,764 Economic development5,967 5,085,833 - - - 106,188 5,197,988 Culture and recreation1,495,454 - -- -367,917 1,863,371 Total expenditures94,933,241 15,065,545 34,055,037 28,166,770 1,446,676 57,832,119 231,499,388 Continued on next page.41City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2021 General FundRedevelopment Commission FundRedevelopment Authority Debt Service FundBond Bank Project Fund2021 Project FundTotal Nonmajor FundsTotalEXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES12,405,759 30,348,339 (34,053,261) (23,128,181) (1,446,396) (5,841,743) (21,715,483) Bond issuance - principal - 23,930,329 50,076,025 3,991,965 43,371,681 - 121,370,000 Bond issuance - premium- - 8,700,206 5,240,426 - - 13,940,632 Debt issuance - capital leases2,334,029 - - - - 489,000 2,823,029 Transfers in, governmental funds899,989 1,538,062 44,100,488 23,378,274 11,871,855 81,788,668 Transfer in (out) from (to) enterprise funds1,320,506 - - - - - 1,320,506 Transfers (out), governmental funds(15,653,056) (27,647,846) (16,999,248) -(1,538,062) (19,950,456) (81,788,668) Total other financing sources and uses(11,098,532) (2,179,455) 85,877,471 32,610,665 41,833,619 (7,589,601) 139,454,167 NET CHANGES IN FUND BALANCES1,307,227 28,168,884 51,824,210 9,482,484 40,387,223 (13,431,344) 117,738,684 FUND BALANCES: beginning27,573,796 12,242,441 24,582,395 2,793,866 -56,922,197 124,114,695 FUND BALANCES: ending28,881,023$ 40,411,325$ 76,406,605$ 12,276,350$ 40,387,223$ 43,490,853$ 241,853,379$ The notes to the financial statements are an integral part of this statement.OTHER FINANCING SOURCES AND (USES):City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2021(Continued)42 117,738,684$ Capital outlays 36,336,840 Disposal of assets (16,361,188) Depreciation expense (23,040,185) (3,064,533) Decrease (increase) in bonds payable for private placement bonds 5,350,000 Decrease (increase) in bonds payable for other bonds secured by revenues (91,464,282) Decrease (increase) in bonds payable for contract purchase obligations 684,442 Amortization of certain bond-related prepaid expense and deferred inflows and outflows (1,922,000) Amortization of premium on bonds outstanding 3,598,212 Bond issuance premium (13,940,632) Capital lease proceeds (2,823,029) Change in capital lease payable (16,465) Principal payments on capital leases 2,762,759 Compensated absences (235,244) (98,006,239) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Property tax 621,649 Income tax 7,365,973 Ambulance fees (9,592) Ambulance fee supplemental (11,088) 7,966,942 Expenses in the Statement of Activities for actuarially-determined pension and other post-employment benefits are not recognized as expenditures in the funds: 1925 Police Officers' plan 292,180 1937 Firefighters' plan 287,127 1977 Police Officers' plan 2,359,434 1977 Firefighters' plan 3,009,557 Civilian public employee retirement plan 2,163,066 Other post-employment benefits - retiree health insurance (742,789) 7,368,575 174,249 Change in net position of governmental activities (Statement of Activities)32,177,678$ Net change in fund balances - total governmental funds, Statement of Revenues, Expenditures, and Changes in Fund Balances 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. 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 depreciation expense. Following is the amount by which capital outlay expenditures were less than depreciation expense in the current period: The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of issuance costs, premiums, discounts and similar items when debt is first issued; whereas these amounts are deferred and amortized in the Statement of Activities. The following items reflect these differences in the treatment of long-term debt and related items: 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, 2021 43 Water Utility Sewer Utility Total Enterprise ASSETS: Current assets: Cash and investments 3,907,036$ 3,011,815$ 6,918,851$ Accounts receivable (net of allowance)311,377 318,316 629,693 Other receivables 1,034,620 611,569 1,646,189 Due from associated utility - 774,920 774,920 Inventories 422,386 413,843 836,229 Prepaid items 15,625 9,375 25,000 Total current assets 5,691,044 5,139,838 10,830,882 Noncurrent assets: Restricted cash, debt service 5,371,960 7,130,013 12,501,973 Due from associated utility 692,940 - 692,940 Capital assets: 30,744,962 22,694,506 53,439,468 Utility plant in service, net of depreciation 164,233,523 61,882,297 226,115,820 Total noncurrent assets 201,043,385 91,706,816 292,750,201 Total assets 206,734,429 96,846,654 303,581,083 DEFERRED OUTFLOW OF RESOURCES: Pension-related 900,172 685,951 1,586,123 OPEB-related 204,024 153,456 357,480 Total deferred outflow of resources 1,104,196 839,407 1,943,603 Continued on next page. City of Carmel, Indiana STATEMENT OF NET POSITIONPROPRIETARY FUNDS Business-Type Activities - Enterprise Funds Land, improvements to land and construction in progress December 31, 2021 44 Water Utility Sewer Utility Total Enterprise LIABILITIES: Current liabilities: Accounts payable 1,161,175$ 508,579$ 1,669,754$ Accrued wages payable 88,213 66,924 155,137 Compensated absences 276,365 195,930 472,295 Due to associated governmental funds 348,989 - 348,989 Due to associated utility 774,920 - 774,920 Hydrant deposits 42,305 - 42,305 Revenue bonds payable, current portion 4,822,000 1,559,466 6,381,466 Capital leases payable, current portion 274,812 59,885 334,697 Accrued interest payable 605,933 120,641 726,574 OPEB liability 73,929 55,605 129,534 Other 147,664 -147,664 Total current liabilities 8,616,305 2,567,030 11,183,335 Noncurrent liabilities: Bonds payable 132,400,264 30,763,775 163,164,039 Capital leases payable 779,597 114,232 893,829 Due to associated utility - 692,940 692,940 Net pension liability 931,284 709,659 1,640,943 OPEB liability 1,987,032 1,494,541 3,481,573 Total noncurrent liabilities 136,098,177 33,775,147 169,873,324 Total liabilities 144,714,482 36,342,177 181,056,659 Pension-related 1,443,162 1,099,721 2,542,883 OPEB-related 609,956 458,776 1,068,732 2008 bond call rights waiver 2,486,791 -2,486,791 Total deferred inflow of resources 4,539,909 1,558,497 6,098,406 NET POSITION: Net investment in capital assets 85,395,874 63,640,217 149,036,091 Restricted for infrastructure 1,012,518 1,241,636 2,254,154 Unrestricted (27,824,161) (5,096,465) (32,920,626) Total net position 58,584,234$ 59,785,387$ 118,369,621$ The notes to the financial statements are an integral part of this statement. PROPRIETARY FUNDS December 31, 2021 City of Carmel, Indiana STATEMENT OF NET POSITION Business-Type Activities - Enterprise Funds DEFERRED INFLOW OF RESOURCES (Continued) 45 Water Utility Sewer Utility Total Enterprise OPERATING REVENUES: Residential sales 14,619,934$ 5,921,160$ 20,541,094$ Commercial and industrial sales 4,727,829 4,943,306 9,671,135 Other operating revenue 669,433 171,466 840,899 Total operating revenues 20,017,196 11,035,932 31,053,128 OPERATING EXPENSES: Source of supply - operation and maintenance 829,045 - 829,045 Water treatment - operation and maintenance 4,377,508 - 4,377,508 Transmission and distribution 4,005,565 - 4,005,565 Collection system - operation and maintenance - 1,754,245 1,754,245 Treatment and disposal - operation and maintenance - 3,045,682 3,045,682 Customer accounts 837,023 634,409 1,471,432 Administration and general 878,420 1,311,212 2,189,632 Payroll tax 322,906 246,336 569,242 Utility receipts tax 281,834 - 281,834 Depreciation 4,377,310 2,537,247 6,914,557 Pension expense (credit)(316,402) (350,661) (667,063) OPEB 76,359 (107,700) (31,341) Total operating expenses 15,669,568 9,070,770 24,740,338 OPERATING INCOME 4,347,628 1,965,162 6,312,790 NON OPERATING REVENUES (EXPENSES): Interest and investment revenue 120,445 36,754 157,199 Miscellaneous revenue 298,398 68,782 367,180 Amortization of call rights waiver 556,382 - 556,382 Amortization of debt premium/(discount)26,934 2,284 29,218 Interest expense (6,713,111) (791,020) (7,504,131) Gain (loss) from disposition of property (467,324) 23,376 (443,948) Total nonoperating revenue (expenses)(6,178,276) (659,824) (6,838,100) Continued on next page. PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2021 City of Carmel, Indiana STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Business-Type Activities - Enterprise Funds 46 Water Utility Sewer Utility Total Enterprise (1,830,648) 1,305,338 (525,310) CAPITAL CONTRIBUTIONS AND TRANSFERS: Capital contributions 5,775,390 1,912,958 7,688,348 Transfers to associated city (839,763) (480,743) (1,320,506) Total capital contributions and transfers 4,935,627 1,432,215 6,367,842 CHANGE IN NET POSITION 3,104,979 2,737,553 5,842,532 NET POSITION: beginning 55,479,255 57,047,834 112,527,089 TOTAL NET POSITION: ending 58,584,234$ 59,785,387$ 118,369,621$ 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, 2021 CHANGE IN NET POSITION BEFORE CONTRIBUTIONS AND TRANSFERS Business-Type Activities - Enterprise Funds 47 Water Utility Sewer Utility Total Enterprise CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from customers and users 19,422,171$ 10,859,164$ 30,281,335$ Payments for goods and services (4,706,965) (1,872,357) (6,579,322) Payments to employees (6,451,924) (4,770,490) (11,222,414) Other receipts 690,048 189,795 879,843 8,953,330 4,406,112 13,359,442 Proceeds from sale of bonds 5,100,000 10,360,000 15,460,000 Capital contributions 4,485,537 1,575,307 6,060,844 Acquisition and construction of capital assets (10,208,370) (7,157,811) (17,366,181) Payment of capital debt, including refunded debt (4,070,000) (8,571,260) (12,641,260) Interest paid on debt (3,647,294) (739,482) (4,386,776) Gain (loss) from disposal of assets (447,559) 23,376 (424,183) Bond-related professional fees (69,000) (179,519) (248,519) Net cash provided (used) by capital and related financing activities (8,856,686) (4,689,389) (13,546,075) CASH FLOWS FROM INVESTING ACTIVITIES: Interest received 120,445 36,754 157,199 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers from (to) governmental funds (839,763) (480,743) (1,320,506) (622,674) (727,266) (1,349,940) 9,901,670 10,869,094 20,770,764 CASH AND CASH EQUIVALENTS: ending 9,278,996$ 10,141,828$ 19,420,824$ Continued on next page. PROPRIETARY FUNDS For the Fiscal Year Ended December 31, 2021 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 48 Water Utility Sewer Utility Total Enterprise RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 4,347,628$ 1,965,162$ 6,312,790$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation expense 4,377,310 2,537,247 6,914,557 Nonoperating income (expense)290,087 63,285 353,372 (Increase) decrease in assets: Accounts receivable (144,871) (55,409) (200,280) Pension-related deferred outflows of resources (240,192) (142,653) (382,845) OPEB-related deferred outflows of resources (127,905) (90,945) (218,850) Other (279,689) (34,112) (313,801) Interfund receivables 30,993 84,220 115,213 Inventories (10,885) (5,183) (16,068) Increase (decrease) in liabilities: Accounts payable 473,776 276,792 750,568 Wages payable 25,627 16,038 41,665 Compensated absence payable (10,477) (27,753) (38,230) Net pension liability (1,073,500) (940,686) (2,014,186) OPEB liability (179,590) (289,850) (469,440) Pension-related deferred inflows of resources 997,290 732,678 1,729,968 OPEB-related deferred inflows of resources 383,854 273,095 656,949 Other current liabilities 93,874 44,186 138,060 Total adjustments 4,605,702 2,440,950 7,046,652 8,953,330$ 4,406,112$ 13,359,442$ NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES: Initiation of capital leases 416,079$ 28,909$ 444,988$ Contributions of capital assets and aid in construction 1,285,854$ 337,652$ 1,623,506$ Amortization of call rights waiver 556,382$ -$ 556,382$ Amortization of bond premium 26,934$ 14,568$ 41,502$ Amortization of bond discount -$ (12,284)$ (12,284)$ Accreted interest 2,392,339$ -$ 2,392,339$ 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, 2021 (Continued) NET CASH PROVIDED BY OPERATING ACTIVITIES STATEMENT OF CASH FLOWS PROPRIETARY FUNDS City of Carmel, Indiana 49 Pension Trust Funds Custodial Funds ASSETS: Cash and cash equivalents 150,255$ 77,685$ Receivable from State of Indiana 98,361 - Total assets 248,616 77,685 LIABILITIES: Payroll withholdings 98,361 - Total liabilities 98,361 - NET POSITION: restricted 150,255$ 77,685$ The notes to the financial statements are an integral part of this statement. City of Carmel, Indiana STATEMENT OF FIDUCIARY NET POSITION December 31, 2021 FIDUCIARY FUNDS 50 Pension Trust Funds Custodial Funds ADDITIONS: Employer contributions 1,178,649$ -$ Investment income 569 - Court costs and fees - 1,146,705 Total additions 1,179,218 1,146,705 DEDUCTIONS: Benefits to plan members and beneficiaries 1,180,233 - Distributions - 1,171,998 Total deductions 1,180,233 1,171,998 NET DECREASE IN NET POSITION (1,015) (25,293) NET POSITION: beginning 151,270 102,978 NET POSITION: ending 150,255$ 77,685$ The notes to the financial statements are an integral part of this statement. For the Fiscal Year Ended December 31, 2021 FIDUCIARY FUNDS City of Carmel, Indiana STATEMENT OF CHANGES IN FIDUCIARY NET POSITION 51 I. Summary of Significant Accounting Policies A. Accounting Principles B. Reporting Entity C. Basis of Presentation – Government-Wide Statements 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. 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. City of Carmel, Indiana NOTES TO BASIC FINANCIAL STATEMENTS For the Fiscal Year Ended December 31, 2021 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, 2021, 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 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. 52 D. Basis of Presentation – Fund Financial Statements The government also reports certain other funds: E. Measurement Focus and Basis of Accounting The government reports the following major governmental funds: 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 Debt Service Fund is used to account for the accumulation of resources that are restricted, committed, or assigned for the payment of principal and interest on certain long-term obligations of governmental funds. 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 Statement of Activities demonstrates the extent to which the direct expenses of a functional category are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. They also include operating and capital grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items properly excluded from program revenues are reported as general revenue. The 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 Bond Bank Project Fund is used to account for the proceeds of bond issuances that have been aggregated through the City's local public improvement bond bank, established in accordance with Indiana law. Generally, proceeds not needed for issuance costs and required reserves are transferred to other funds to be used to acquire capital assets. The Redevelopment Commission Fund is used to account for the collection and expenditure of tax increment financing revenue and certain other economic development activities. The government 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 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. 53 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 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. 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 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. 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. 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. 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 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 capital leases 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. 54 The capitalization threshold below is determined by the asset class. a) Land is capitalized regardless of the value or cost; Buildings 20–100 years Improvements Other than Buildings 10–20 years Machinery, Equipment, and Vehicles 5–20 years Infrastructure 20–50 years 5. Compensated Absences 6. Bond Premiums and Discounts 7. Deferred Outflows/Inflows of Resources 8. Net Position Flow Assumption 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. 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. 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 (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. 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. 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 and pension and OPEB-related credits arising from changes in actuarial assumptions and timing differences. The former category includes the current value of renegotiated terms of certain bonds, particularly the waiving of call rights on certain bonds. Such renegotiation does not constitute refunding per se but has a similar economic and accounting effect. Bond premiums and discounts are amortized in the government-wide and proprietary statements over the life of the issuances. 55 9. Fund Balance Flow Assumptions 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 • 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 fund balance in the General Fund is the excess over non-spendable, restricted, committed, and assignedfund balance. 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: The preparation of the basic financial statements in conformity with GAAP requires the City's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the basic financial statements and/or the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates, but the City believes that the differences will be insignificant. Among the items subject to estimates are pension liabilities, OPEB liabilities, deferred inflows and outflows of resources related to pensions and OPEB, and certain receivables. All net position reported as restricted in the accompanying Statement of Net Position is restricted due to legally enforceable contractual obligations or Indiana law. 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. Net position is presented on the Statement of Net Position. Net position represents the difference between (a) assets and deferred outflows of resources and (b) liabilities and deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any debt related to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of these assets or related debt are also included in this component of net position. Net position is reported as restricted when there are limitations imposed on its use, either through enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, laws, or regulations of other governments. 56 H. Revenues and Expenditures/Expenses 1 . Program Revenues 2 . Property Taxes 3 . Income Taxes 4. Proprietary Funds Operating and Nonoperating Revenues and Expenses 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. 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. 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. 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. 57 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, 2021: Investment Type Municipal Bonds U.S. Treasury NotesU.S. Government-backed Securities Total 1 to 5 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. 2,574,249$ - 11,302,444$ -$ 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. 16,950,479 390,614$ 16,950,479 -$ 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. 2,183,635$ 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. 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. 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 10,911,830 - 10,911,830 - More than 5 Investment Maturities (in Years) - 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. The City has no deposits or investments denominated in foreign currencies and does not foresee having any foreign currency risk in the future. 19,134,114$ 30,436,558$ The City's total cash deposits at December 31, 2021, were $231,893,774, of which $12,501,973 is restricted and $219,391,801 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. 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. 58 B. Receivables and Transfers 1. Receivables Revenue Source Property taxes Income taxes Other Due from other fundsDue from utility Total Revenue Source Accounts and otherDue from associated utility Total The Sewer Utility recognizes a long-term liability of $692,940 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 Total unavailable revenue 2. Transfers a) Transfers among Governmental Funds Transfers Out General Fund Redevelopment Commission Fund RDA Debt Service Fund2021 Project Fund Nonmajor Total The Redevelopment Commission Fund transferred $527,794 to the General Fund to satisfy debt service payments. The Redevelopment Commission Fund transferred $879,000 to a nonmajor fund to satisfy debt service payments. The Redevelopment Commission Fund transferred $2,390,051 to a nonmajor fund for repayment of a bank loan. 2,275,882$ - 1,775,417$ 19,614,887 Receivables at December 31, 2021, for business-type activities of the City's individual major enterprise funds consisted of the following: 87,414 2,483,566$ Total 708,149$ - Nonmajor 929,885$ 19,614,887 8,554,432 The General Fund, the Redevelopment Commission Fund, and nonmajor funds made lease payments to the Redevelopment Authority (RDA) Debt Service Fund in the amounts of $15,430,556, $20,115,500, and $8,554,432, respectively, in order to satisfy debt service payments. 348,989 General RDA Debt Service 774,920 774,920 Sewer Utility Total 15,653,056$ 27,647,846 16,999,248 1,538,062 19,950,456 81,788,668$ General -$ 527,794 - - 372,195 899,989$ Redevelopment Commission - -$ Total 692,940 2,483,566$ 3,743,742$ - 1,538,062$ - Receivables at December 31, 2021, for governmental activities of the City's individual major governmental funds and nonmajor governmental funds, in the aggregate, consisted of the following: 1,212,660$ 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: 348,989 The Redevelopment Commission Fund transferred $1,211,265 of grant revenue to a nonmajor fund to pay for improvements to a City- owned office and theater building associated with a new tenant. 2,038,937$ 15,133,040$ 72,845 - Water Utility 1,345,997$ 692,940 68,108 584,278 The General Fund transferred $222,500 of proceeds from a sale of property to a nonmajor fund to pay for park projects. 68,108 23,187,242$ 21,974,582$ 1,704,805$ 584,278 - 11,992,351 671,692 Bond Bank -$ 16,999,248 - 3,854,790 15,430,556$ 20,115,500 - - 2,524,236 - 1,538,062 23,378,274$ Due from associated utility - noncurrent Transfers In 44,100,488$ Nonmajor 222,500$ 4,480,316 - - 7,169,039 11,871,855$ 59 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 vehiclesInfrastructure Total capital assets, being depreciated Less accumulated depreciation, for Buildings and improvementsMachinery, 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 depreciatedUtility 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 572,445,762 99,451,550 Additions/Transfers In 105,158,140 (1,115,584) (118,916,314) (2,565,332)$ 196,345,440$ (7,099,716) 143,190,718 4,007,870 215,316,099 23,040,185 18,693,335 26,360,296 55,405,444 588,295,714 903,153,880 (6,238,288) Transfers Out BalanceDeletions/ Transfers In Balance Dec 31, 2020 1,320,506$ Sewer Fund General Capital asset activity for Governmental Activities for the year ended December 31, 2021, was as follows: Water Fund 480,743 (121,481,646) 122,491,735 96,529,123 259,452,722 (5,593,242) The Water and Sewer Funds transferred $839,763 and $480,743, respectively, of available excess cash to the General Fund. 839,763$ 23,529,716 107,183,512 400,198,216 Additions/ Dec 31, 2021 303,528,952 197,628,106$ 24,812,382 202,570,110 The Redevelopment Commission Fund, the Redevelopment Authority Debt Service Fund, and nonmajor funds transferred $2,524,236, $16,999,248, and $3,854,790, respectively, to the Bond Bank Project Fund to satisfy debt service payments. The 2021 Project Fund transferred of reimbursements $1,538,062 to the Redevelopment Commission Fund associated with the Police Headquarters project. A nonmajor fund transferred $372,195 of grant revenue to the General Fund and $1,448,762 to other nonmajor funds for Federal grant projects. A nonmajor fund transferred $896,764 to another nonmajor fund in compliance with a City ordinance. A nonmajor fund transferred $4,009,275 to another nonmajor fund for costs associated with an economic development project. A nonmajor fund transferred $204,059 of funds remaining after the completion of a certain road improvement project to another nonmajor fund to be used for future road improvement projects. A nonmajor fund made $143,032 of contract purchase payments on behalf of another fund. Nonmajor funds transferred $467,147 to other nonmajor funds to close out certain construction cash accounts. b) Transfers between Governmental and Enterprise Funds Total (2,127,796) -$ 491,920,531 787,761,861 4,554,522$ 124,263,932$ 29,115,269 156,443,650 4,130,981$ 226,115,820 99,769,212 246,352,629 (1,352,534) 1,282,666$ (153,940) 49,488,701 7,269,277 Dec 31, 2020 5,798,973 18,441,289$ 237,103,387 (5,846,819) 666,050,493 969,579,445$ (127,328,465)$ 51,544,468 13,252,932 (1,252,897) 53,439,468 19,556,873 40,120,883 (2,127,796) Capital asset activity for Business-Type Activities for the year ended December 31, 2021, was as follows: 227,833,571 (1,252,897) 45,765,085 5,779,383 - - (602,167) (6,840,455)$ 331,273,960 279,555,288$ Deletions/ Balance 972,643,978$ Dec 31, 2021 331,273,960 (1,525,629) (6,238,288) 6,914,557 267,954,454$ Transfers Out 35,989,902 423,541$ 5,798,973 Balance 19,133,332 327,602,783 48,884,946 327,602,783 Transfers In 60 Governmental Activities: General Government Economic DevelopmentCulture & 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, 2021: Governmental Activities: Private placement bonds Other bonds secured by revenues Contract purchase obligations Unamortized bond premium Capital leases Compensated absences Total OPEB liability Portion of above due within one year Portion of capital leases 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 10,206,016 595,480,287 Dec 31, 2021 43,779,354 -$ Jan 1, 2021 Subtotal, bonds, premiums, and discounts (66,204,818)$ 21,754,116 23,524,710 10,266,286 29,954,742$ 797,541,453$ (2,762,759) 6,914,557 71,715,000$ 7,467,903 44,434,956 2,823,029 135,310,632 121,370,000 717,543 - 169,649 Less, 40,490,384$ 26,487,196 4,411,329 Total governmental activities Reductions 23,040,185 13,940,632 686,944,569 (5,350,000)$ Balance 820,834,516 - 34,785,245 (182,946) 2,062,886 2,798,383 843,870 Due Within (3,598,212) 8,053,173 2,062,886 878,442,514 (29,905,718) One Year Balance (39,538,372) 147,105,879$ 14,525,901 Net pension liability 1,827,642 418,190 (7,373,815) (16,346,926) 8,737,615 725,062,256 Additions 6,914,557 786,049,271$ 40,490,384 33,958,343 4,142,699 Depreciation expense was charged as follows for the year ended December 31, 2021: 6,138,805 1,711,042 54,121,774 28,987,702 494,788$ 77,065,000$ 5,080,000$ (684,442) Liabilities other than debt, which are ordinarily employment related, such as compensated absences, pensions, and other post- employment benefits, have been liquidated in prior years by the same governmental funds that expended the regular compensation to the affected employees. When liabilities have arisen, other than debt, which were not related to compensation, the liabilities have ordinarily been liquidated by the governmental funds that financed the activities that gave rise to the liabilities. 61 Business-Type Activities: Sewer utility revenue bonds Water utility revenue bondsTotal business-type bonds Sewer utility bond premium Sewer utility bond discount Water utility bond premium Utility capital leases Compensated absences Total OPEB liability Portion of above due within one year Portion of capital leases 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: 986,000 Bonds issued in order to acquire capital assets, for which the City has pledged an unlimited ad valorem property tax levy to satisfy the principal and interest on the bonds as they become due: 6,381,466 1.576%- 3.762% Redevelopment Authority Taxable Lease Rental Bonds, Series 2017C-1 8,170,000 2027 32,495,000 2019 Amount 3.940% Interest Rate 5,122,516 2041 7,715,000 54,225,000$ 54,225,000$ 173,836,622$ 334,697 893,829 Year of (17,574,040)$ 1,559,466$ 14,568 (14,568) 136,836,212 169,159,453 386,052 12,284 (12,284) (3,317,344) 1,640,943 164,363,644 - 4,218,078 602,468 (1,209,439) Net pension liability 510,525 163,948,374 - 7,492,339 1,089,246 Subtotal, bonds, premiums, and discounts 17,852,339 Dec 31, 2021Balance 412,986 444,988 472,295 (305,708) 3,655,129 1,303,158 (4,070,000) 133,413,873 4,822,000 Balance 30,534,501$ (8,571,260)$ 3.000% - 4.000%2021 2041 - (12,641,260) 32,323,241$ Redevelopment Authority Property Tax Lease Rental Bonds, Series 2021 20,235,794$ 3.000% - 5.000%2017 Outstanding 2038 0.211% - 2.301%2021 6,700,000 2020 540,000 17,885,000 Redevelopment Authority Tax-Exempt Lease Rental Bonds, Series 2017B-1 Redevelopment Authority Tax-Exempt Lease Rental Bonds, Series 2017B-2 10,525,000 2035 Taxable Lease Rental Bonds, Series 2019A-1 Taxable Lease Rental Bonds, Series 2019A-2 815,000 2.006% - 3.200% 24,000,000 2020 Taxable Special Program Bonds, Series 2016 23,235,000 2016 2020 2033 Dec 31, 2020 10,360,000$ Due Within 176,498,376 163,164,039$ 472,295 3,611,107 129,534 (12,670,478) 31,630,000 1,228,526 - One Year 32,841 (71,071) Amount 169,545,505 7,317,992$ Additions 20173.200% - 3.200% 2016 18,830,000 Taxable Redevelopment District Bonds, Series 2021 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. Less, Original Taxable Lease Rental Revenue Refunding Bonds, Series 2020A 0.839%- 2.628%125,195,000 Total business-type activities 125,195,000 7,317,992 - 5,870,000 7,135,000 0.337%- 2.074%62,270,000 Taxable Lease Rental Revenue Refunding Bonds, Series 2020B 61,525,000 2035 24,215,000 24,215,000 (26,934) 6,381,466 - 17,852,339 Reductions Issue Year ofMaturity 2019 2037 2037 3.990% - 4.850% 2027 2036 1,214,000 2033 Storm Water District Revenue Bonds, Series 2020 2.110% General Obligation Bonds, Series 2016A 2017 2.000%- 5.000%62 * 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, 2021, the total of payments on the bonds listed above was 0.498% of taxable assessed value. 2.000%- 5.000% 884,000 1,089,000 10,337,000 2.000%- 5.000% 1,394,000 1,577,000 1,373,000 General Obligation Bonds, Series 2016G 2.000%- 5.000% 2016 1,115,000 1,230,000 2.000%- 5.000% 1,426,000 2.000%- 5.000% 1,327,000 2.000%- 5.000% 2036 2016 General Obligation Bonds, Series 2016C 2016 1,159,000 General Obligation Bonds, Series 2016L 1,299,000 2016 2016 2016 2036 2.000%- 5.000% 1,577,000 General Obligation Bonds, Series 2016H 2.000%- 5.000% General Obligation Bonds, Series 2016E 2.000%- 5.000% 1,633,000 2016 2036 General Obligation Bonds, Series 2016B 2036 1,599,000 2036 General Obligation Bonds, Series 2016D 1,373,000 Redevelopment Authority Taxable Lease Rental Bonds, Series 2016D (Midtown Phase 1A) 2036 2016 2029 2016 2036 2036 2036 1,383,000 20162.000%- 5.000% 2016 2036 139,872,000** 2035 2.000%- 5.000% 2016 2.000%- 5.000% 2.000%- 5.000% 1.576%- 3.762% Redevelopment Authority Lease Rental Bonds, Series 2016C (Energy Center Project) General Obligation Bonds, Series 2016I 2016 General Obligation Bonds, Series 2016F General Obligation Bonds, Series 2016J 2.000%- 5.000% 2016 1,211,000 General Obligation Bonds, Series 2016M 1,133,000 1,125,000 2.000%- 5.000% Lease Rental Revenue Refunding Bonds of 2011 (West Clay road) Redevelopment District Bonds of 2013 10,890,000 6,535,000 2016 Storm Water Bond(Authorized: $44,500,000) Redevelopment Authority Lease Rental Bonds, Series 2016A (Public Infrastructure Projects) 2036 130,376,000 Redevelopment Authority Lease Rental Bonds, Series 2016B (Economic Development Projects) 6,485,000 12,429,000 9,965,000 27,323,569 2016 24,435,000 Lease Rental Revenue Multipurpose Bonds, Series 2012B 2035 5.800%- 8.450% 15,164,000 25,190,000 1,115,000 1,513,000 2036 2036 8,758,000 2.000%- 5.000% General Obligation Bonds, Series 2016K 1,283,000 5,180,000 69,245,000 25,855,000 2016 2036 30,720,000 2041 2005 2016 1.190%- 3.000%2012 2011 1,283,000 984,000 Lease Rental Revenue Bonds of 2005 (unrefunded portion)19,649,150*2026 20245.000% 2.000%- 4.000% 2025 2013 63 Loft A Private Placement 2011 Restated Secondary Village #1 Total bond principal and contract purchases Capital Leases Compensated Absences Total bond principal, contract purchases, capital leases, and compensated absences. Bond premium 32,380,000 Municipal Facilities Building Corp Lease Rental Bonds, Series 2021 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: Issue OutstandingInterest Rate 770,000 3.000% - 4.000%2021 2041 32,380,000 AmountYear of Year of 1.973% - 3.864% 2021 2041 Redevelopment Authority LIT Lease Rental Revenue Refunding Bonds, Series 2017 2022 Amount 2017 In the year ended December 31, 2021, the total of payments on the bonds listed immediately above was 14.0% of annual county option income tax revenue. Amount 7,180,000 COIT Lease Rental Revenue Refunding Bond, Series 2014B (Northwest Clay Road) 3.000%- 5.000% 2030 COIT Refunding Bonds of 2011 2004 2042 Outstanding Taxable Lease Rental Bonds, Series 2017C-2 Interest Rate Taxable Local Income Tax General Obligation Bonds, Series 2021 10,550,000 18,920,000 Maturity 29,015,000 Original Maturity Year of Original 2011 2027 23,180,000 2.320% 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: 2.360% - 2.360% 2043 2020 2021 2,500,000 7,240,000 0.855% - 2.706% 7,405,000 2017 AmountYear of 2025 2,070,000 2048 14,440,000 6,000,000 2018 9,500,000 6.650% Issue Original 2.100% - 3.750% 2024 2014 46,795,000 Taxable Tax Increment Revenue Bonds, Series 2004A Redevelopment Authority Taxable Lease Rental Bonds, Series 2017A (Midtown South) N/AN/A Interest Rate 2,062,886 2033 N/A 18,281,639 LIBOR Contract purchases of capital assets: 2013 2011 6,385,000 AmountYear of 766,712,742 2011-2021 Taxable Economic Development Lease Rental Revenue Bonds, Series 2018A (Midtown West Project) 2019 2034 16,600,000 In the year ended December 31, 2021, the total of payments on the bonds listed immediately above was 16.1% of annual incremental tax revenue. 12,375,000 2.500% - 5.000%12,645,000 2017 2020 Carmel Midtown Community Development Corporation Mortgage Note LIBOR +215 basis points 6,000,000 5.150%2019 City Center Community Development Loan Year of LIBOR 4,500,000 9,630,000 1.290% - 3.980% - 54,121,774 1,668,173 OutstandingAmount 779,041,914 N/A 833,163,688$ MaturityIssue 10,266,286 Total governmental activities bonds, contract purchases, capital leases, and compensated absences. 2031 10,550,000 64 Business-type Activities Long-Term Debt: Bond Premium/ DiscountTotal bonded debt, including amount due in one year Total business-type activities bonds, capital leases, and compensated absences. Total City bonds, capital leases, and compensated absences. Streets and infrastructure Economic development Total Capital Leases 20,852,890$ 11,000,000 Year of Water Utility 2008 Capital Appreciation Bonds 2012 Sewer Utility 2005 Revenue Bonds Refinance 2037 2.000%- 4.000% 43,639,212 2036 2026 Waterworks Special Program Bonds, Series 2016 53,735,000 20,644,479 Sewer Utility 2012 Revenue Bonds 2,640,241 - 0.420% 2019 2039 15,954,000 15,953,000 Issue Maturity Amount 11,040,000 Water Utility Junior Waterwork Revenue Bond of 2012 3,100,000 3,100,000 2.000%- 3.250% AmountYear of 21,625,000 2008 17,745,000 2023 2029 2028 1.800%- 3.700% 3,370,000 4.130%- 5.790% 10,897,000 2017 2030 Outstanding 5,100,000$ 7,260,000 0.830% - 2.430% 3.000%- 5.000% 1.750% 2021 2032 Waterworks Revenue Bond Anticipation Notes of 2019 Sewer Utility 2009 SRF Original 17,745,000 5,894,000 20322012 Interest Rate 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: 171,246,326 1,004,410,014$ The City expects the pledged revenue will be more than sufficient to satisfy the principal and interest on the obligations listed above. This revenue is not pledged to satisfy any other obligations, nor is it committed for operating or other necessary expenditures. Junior Waterworks Revenue Bonds of 2021 N/AN/A 2020 386,052 13,000,000 4.320%- 4.610% 2016 2009 1,198,932 472,295 N/A The City has pledged up to $1,115,000 of income tax revenue, payable in the event an overlapping unit of government is unable to service certain debt. The City does not expect to be called upon to make these payments. 1,228,526 2.320% 2013 Sewer Utility Revenue Bonds of 2020 2.250% 44,695,000 2005 Interest on long term debt has been charged as a direct expense in certain instances in which borrowing has been essential to the creation or continued existence of projects, as follows: 9,752,357 169,545,505 N/ACompensated Absences In the year ended December 31, 2021, revenue, net of reasonable expenses for operation, repair, and maintenance, was 113.1% of debt service requirement for the Water utility and 48.4% of debt service requirement for the Sewer utility. 2021 2039 2021 Sewer Utility Refunding Bonds 2021 Sewer Utility Revenue Bonds 2.340% 11,100,533$ 2021 2039 5,100,000$ Junior Waterworks Revenue Refunding Bonds of 2017 2025 7,260,000 14,760,000 65 2. Debt Service Requirements to Maturity Total Requirements Total Requirements Business-Type Activities: December 31 22,201,320 - 322,764,926 71,715,000$ 2032 - 2036 67,550,000 747,289,559 43,049,660 20,249,895 300,000 28,478,503 Notes and Loan and Contract Purchase 887,909 2042 - 2046 55,731,558 4,824,389 24,305,000 72,374,389 2027 - 2031 2,956,736 72,750,000 994,457,849$ 43,668,644 - 246,736 308,340 667,521,386 31,473,494 5,360,324 4,965,000 - Governmental Activities: 523,731$ 2,269,119$ Year Ended Obligations Payable - Total Interest 2,860,990$ - 2025 35,115,709 Total 70,863,889 242,252,808 209,847,000 Interest 26,109,711 730,392 287,781,947 2024 1,389,735 4,058,578 717,543$ 1,615,968 Direct Placement 5,080,000$ 381,160 Total 425,167 2026 1,223,366 4,788,970 Interest 2042 - 2046 7,349,119$ 4,665,000 - 28,689,284$ - Principal 1,219,779 21,323,549 5,055,000 64,992,193 1,219,762 19,007,581$ 38,165,042 65,776,283 Notes and Loan Payable - 465,083 2,110,350 6,973,299 1,760,925 6,425,925 1,200,000 - 90,722,581$ 4,725,000 2022 Contract Purchase Interest 838,602 - 5,200,000 247,168,290$ 225,299,719$ 6,381,466$ 30,194,009 794,612 Principal 19,181,464 189,735 10,629,136$ 2,710,000 Principal 1,510,000 892,821,105$ 245,473,578 77,291,348 755,929 8,053,173$ 57,346,506 63,299,555 5,889,009 28,453,177 2023 2022 2027 - 2031 Notes and Loan Payable - 308,340 7,075,350 6,340,968 Direct Borrowings 34,785,245$ 2025 2026 Year Ended 2037 - 2041 December 31 2027 - 2031 19,423,183 9,231,116 4,247,670$ 31,334,573 2022 48,662,569 300,000 8,485,894 1,567,001 Total 54,884,136$ 63,893,822 Year Ended December 31 2026 169,159,453$ 2,488,567 13,966,910 30,617,711 11,478,343 11,783,641 2023 24,692,678 8,036,000 28,496,388 227,809,239$ 10,914,163$ 1,918,299 3,803,710 226,067,000 - 1,241,274$ 1,221,012 Total 78,576,085 - - - 2032 - 2036 57,583,205 2,932,098 12,163,214 2024 78,110,324 64,027,920 261,182,709 8,340 Interest Total 2023 37,323,106 16,220,000 - 22,994,733 264,044 8,300,044 2024 25,896,434$ Thereafter 8,340 2032 - 2036 2,709,901 535,935 5,735,935 Total Requirements Accretion on CABs Total Requirements 18,929,901 3,297,747 766,712,742$ Accretion on CABs - 686,944,569$ 19,423,183 57,001 217,110,000 335,457 81,644,519$ Obligations Payable 63,474,529$ Principal 2037 - 2041 33,276,111 2025 25,903,070 29,828,488 32,405,808 28,987,702$ 70,671,947 35,549,417 2037 - 2041 47,241,512 Principal 146,164,720 - 66 Thereafter 3. Capital Leases 412,955 Total 60,211 2027 - 2031 1,228,526$ 356,372$ 157,171 21,675$ 16,919 Capital Leases: 118,647 1,964,117 68,421 2024 99,034 December 31 58,049 170,423 38,823 2027 - 2031 1,468,907 80,026 Total 2026 1,349,294$ 717,277$ 242,089 Business-type Activities: 393,228 Principal Interest 2023 The Water and Sewer Utilities entered into various capital leases for certain equipment. As of December 31, 2021, the Utilities had assets with an original cost of $1,392,745 and accumulated depreciation of $562,327 financed through capital leases. 13,252 225,170 Total Year Ended 2022 718,115 52,482 10,983,563$ 1,411,223 2,798,383$ 1,845,470 2026 Total 1,331,197 2024 770,597 The City has entered into various capital leases for equipment for various departments, including Police, Fire, Streets, and for a golf course. As of December 31, 2021, the City had assets with an original cost of $18,281,639 and accumulated depreciation of $8,208,076 financed through capital leases. 334,697$ 2022 4. Operating Leases The City owns a certain office and theater building and is lessor to certain private tenants. The cost of the office and theater building is $20,500,000. Rent revenue of $1,079,358 was recognized under this arrangement during 2021. Depreciation expense for the year ended December 31, 2021, was $410,000 and book value as of December 31,2021, was $16,810,000. 5.Other Commitments Various claims and lawsuits are pending against the City. At December 31, 2021, the administration believes the amount payable for claims and judgments, if any, is not material in relation to the basic financial statements taken as a whole. Certain City officials are empowered to issue purchase orders and enter into contracts that constitute contractual obligations of the City. For governmental funds, these obligations are included in, and do not exceed, the assigned, committed and restricted fund balances of the respective funds. Total assigned from the General Fund balance: $ 6,726,730 Construction commitments for the Water and Sewer Enterprise Funds were $1,800,000 and $1,700,000, respectively. 6.Contingent Grants The Carmel Redevelopment Commission, an integral part of the City, is contingently liable for the issuance of up to $25.5 million of grants, via a community development corporation which is a component unit of the City. The purpose of the contingent grants is to encourage private investment in the area served by the community development corporation. The grants are contingent upon the need to cover payments on loans used to finance the private investment. As of December 31, 2021, no grant payments had been made by the City in connection with these loans. The Administration believes no such payments will be needed in the future. 120,768$ 10,372 19,727 10,266,286$ Equipment Capital Leases Year Ended 2025 1,400,640 2025 December 3,028,674$ 167,564 2,340,045 230,291$ Principal Interest Governmental Activities: 2,172,481 68,267 2023 67 7. Limited Recourse Obligations Payable Solely from Property Taxes Generated from a Specific Project Site 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. Economic Gain on Advance Refunding 9. 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 2020BLease 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 1/15/2035 31,195,000 1/15/20352010B COPS 115,900,000$ Bonds Refunded 2014 LR Refunding Bonds 12,400,000 27,194 2024 750,862 722,919 761,563 Refunding Bonds 28,369 $ 8,035,090 802,837 726,300 2,120,000 3,896,869 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. 731,713 2027 - 2031 $ 1,188,398 2012A LR Multi Bonds Through - 2010A COPS Year 2008B Jr. Water 6/1/2026 1/15/2035 3,624,200 2010C COPs 7/15/2035 $ 236,145,000 752,338 $ 9,223,488 - 2022 30,668 Proceeds of Sewer Utility bonds issued during the year ended December 31, 2021, known as the 2021 Sewer Utility Refunding Bonds, were used to refund certain other obligations then outstanding, at an economic gain of $1,188,398. 725,144 Outstanding 76,537 Refunded Obligations 2037 - 2039 272,669 20252026 725,994 2023 754,363 2032 - 2036 Refunded Bonds 754,787 724,119 - The change in cash flows resulting from the refunding is as follows: 38,644 20,125,000 19,150 54,405,000 Totals 1/1/2031 Savings 2021 $ 749,869 $ 54,702 $ 695,167 68 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 Plan Plan Description: 11,104,686 2. 55% of the benefit the retiree was receiving. 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. 646,713$ 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 $12,000 will be paid to heirs of the deceased member. 910,893$ 15,042,628 1. 30% of the monthly pay of a first-class patrol officer, or 15,204,616 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. If retired prior to January 1, 1986, receives 2% of the first-class salary for each year of service in excess of 20, or; 2021 11,368,866 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. 910,893$ Benefits provided: 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. 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: 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. 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 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 $175,000 per year. 2020 The plans also provide a death benefit for a surviving spouse to receive the greater of 1,072,881$ 69 Contributions: Net Pension Liability and Pension Expense: Assumptions and Other Inputs Active members of the 1925 Police Officers' and 1937 Firefighters' plans had the option of participating in the deferred retirement option plan (DROP). Under that plan, an active member could declare in advance a future retirement date. From the time of that declaration, contributions on behalf of that member would have been segregated into a separate fund for his benefit. Upon retirement, the member would have several options with regard to taking the balance in this fund in the form of a lump sum or future payments. The member's regular retirement benefits would be paid as if he had retired on his declaration date. The City has no participants in DROP. 3.54% Police Officers; 3.58% Firefighters for 2019 December 31, 2021–Police Officers' member census data as of January 1, 2021, and Firefighters' member census data as of January 1, 2021, was used in the valuation. Retirees and beneficiaries currently receiving benefits 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, 2021, the State of Indiana contributed $579,819 to the '25 Police Officers' Plan and $598,830 to the '37 Firefighters' Plan on behalf of the City during the fiscal year. 14 Mortality and Mortality Improvement Valuation Date Police Membership: SOA published mortality improvement scale: MP-2020 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. December 31, 2021 Terminated employees entitled to but not yet receiving benefits 1925 or 1937 Plan Membership in the Plans as of the most recent actuarial valuation was comprised of the following: 14 The plans are closed to new entrants. - Total Plan Members Current active employees - Fire 14 - 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: 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. 1977 Plan Converted The City's net pension liability of $8,187,979 for the '25 Police Officers' Plan and $8,976,936 for the '37 Firefighters' Plan was measured as of December 31, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of December 31, 2021. For the year ended December 31, 2021, the City recognized pension expense of $288,692 for the '25 Police Plan and $311,326 for the '37 Firefighters Plan. - 14 3.48% Police Officers; 3.48% Firefighters for 2021 and 2020 2.50% Measurement Date 2.50% 70 Changes in the Net Pension Liability: Changes for the year:Service Cost Interest Changes in Plan Provisions Difference between Expected and Actual Experience Changes in AssumptionsBenefit Payments Employer contributions Employee contributions Net transfers into (out of) trust Net investment incomeBenefit payments Administrative expenses Other Fiduciary net position as a percentage of total pension liability '25 Police Officers' Plan Fiscal Year End Thereafter Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: - - 288,782 136,916$ (587,133) (587,133) - - - (446) (579,819) - - 288,782 - - -$ - - - - - 8,479,462$ (587,133) - - - - - Balances as of December 31, 2021 At December 31, 2021, the City reported a net pension liability of $8,187,979 for the '25 Police Officers' Plan. - - 2,725$ 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: 8,318,027$ 130,048$ 7,276$ 2024 1,791 2025 2022 Total 7,276$ -$ Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience -$ 8,187,979$ 863 1,897 - - Changes in assumptions - - 1.56% For the year ended December 31, 2021, the City recognized pension expense of $288,692, which included net amortization of deferred amounts from liability experience, assumption changes and investment gains and/or losses. At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the '25 Police Officers' Plan from the following sources: 7,276 2023 - Net Pension Liability - - Total Pension Liability - - '25 Police Officers' Plan Increase (Decrease) - - 8,616,378$ Balances as of December 31, 2020 - Plan Fiduciary Net Position 579,819 587,133 2026 - Net difference between projected and actual earnings on pension plan investments 446 71 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 AssumptionsBenefit Payments Employer contributions Employee contributions Net transfers into (out of) trust Net investment incomeBenefit payments Administrative expenses Other Fiduciary net position as a percentage of total pension liability '37 Firefighters' Plan Fiscal Year End Thereafter 14,354$ - - - - 8,976,936$ - - - 9,278,530$ Total Pension Liability - Balances as of December 31, 2020 Net Pension Liability - - - - - - - '37 Firefighters' Plan 9,264,176$ Differences between expected and actual experience -$ -$ 2022 313$ Changes in assumptions (593,100) - - 0.22% (593,100) Increase (Decrease) 598,830 At December 31, 2021, the City reported a net pension liability of $8,976,936 for the '37 Firefighters' Plan. 593,100 - - - - - - - 311,713 (123) 890 20,207$ For the year ended December 31, 2021, the City recognized pension expense of $311,326, which included net amortization of deferred amounts from liability experience, assumption changes and investment gains and/or losses. At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the '37 Firefighters' Plan from the following sources: (593,100) 2023 - 123 - Deferred inflows of resources resulting from the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in pension expense as follows: 186 - - Total 890$ -$ 2024 2025 77 314 - 890$ Balances as of December 31, 2021 8,997,143$ - Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: - - Deferred Outflows of Resources Deferred Inflows of Resources - Plan Fiduciary Net Position 311,713 2026 - (598,830) Net difference between projected and actual earnings on pension plan investments 72 Sensitivity of Net Pension Liability to Changes in the Discount Rate: Participation by State of Indiana ASSETS: Cash and cash equivalentsReceivable 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 2. Cost-Sharing Multiple-Employer Defined Benefit Pension Plan PUBLIC EMPLOYEES' RETIREMENT FUND (PERF) Plan Description: $ 8,173,998 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: $ 9,021,695 $ 9,918,068 48,983 $ 20,207 $ 8,187,979 179,031 48,983 '25 Police Pension Trust $ 130,048 $ 20,207 - 598,953 (6,868) 136,916 - $ 579,819 446 587,133 The City contributes to the Public Employees' Retirement Fund (PERF), which is administered by the Indiana Public Retirement System (INPRS). It is a cost-sharing, multiple-employer defined benefit plan. PERF provides retirement, disability, and survivor benefits to full-time employees of the State not covered by another plan, those political subdivisions that elect to participate in the retirement plan, including the City of Carmel, and certain INPRS employees. There are two tiers to the PERF Plan. The first is the Public Employees' Defined Benefit Plan (PERF Hybrid Plan), and the second is the Public Employees' Defined Contribution Plan (PERF My Choice Retirement Savings Plan). 593,100 For the Fiscal Year Ended December 31, 2021 Current Discount Rate $ 7,471,938 69,585 49,378 1% Decrease 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, 2021. The amounts were $579,819 and $598,830, respectively. The State of Indiana is not obligated to make such payments in the future, and the City remains liable for future pension expenditures. 123 580,265 '37 Firefighters' Plan 1% Increase '25 Police Pension Trust 49,378 $ 130,048 '37 Fire Pension Trust Fund '25 Police Officers' Plan 14,354 December 31, 2021 - $ 8,976,936 - 587,133 $ 20,207 $ 130,048 593,100 '37 Fire Pension Trust Fund $ 598,830 STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDS 5,853 73 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 Contribution Rates: 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. The employer defined-benefit contribution rate is based on an actuarial valuation and is adopted, and may be amended, by the INPRS Board. For 2021, 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. 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). 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. Employees who are compensated through the Parks Department of the General Fund and through certain other funds committed or restricted for parks (Park). 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. 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). There are two components to the PERF Hybrid Plan defined benefit structure: PERF DB, the monthly employer-funded defined benefit component, along with the Public Employees' Hybrid Members Defined Contribution Account (PERF DC), a member-funded account. City participants are viewed by INPRS to be classified into two groups, solely for purposes of actuarial evaluation: 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. The City's contribution to the plan for the year ending December 31, 2021, was $3,481,738 for City participants and $237,999 for the Park participants, which was equal to the required contributions for the year. 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. 74 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, 2021 Valuation Date Assets:June 30, 2021 Liabilities: Price Inflation 2.00% per year Future Salary Increases 2.65% - 8.65% based on service Wage Inflation Cost-of-Living Increases As of June 30, 2021: As of June 30, 2020: Mortality Assumption 1 7.65% 8.65% 8 2.65% 2.65%1.50% 9 Disableds – General Disabled table with a 140% load. Retirees – General Retiree table with a 3 year set forward for males and a 1 year set forward for females. Beneficiaries – Contingent Survivor table with no set forward for males and a 2 year set forward for females. Salary Increase 2.65%1.00%3.65% 4.40%2.65% 5.65% In lieu of a COLA on January 1, 2021, members in pay status were provided a 13th check on October 1, 2019 and October 1, 2020. Thereafter, the following COLAs, compounded annually, were assumed: 10 Healthy Employees – General Employee table with a 3 year set forward for males and a 1 year set forward for females. Proportionate Share of the Net Pension Liability: 7 6.65% 2.65% 5.15% 5 6 2.00% 4.65%2.65% 3 2.65% 2.65% 0.75% 0.50% 0.00% 2.65% 11 Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019. 4.00% 2.65% 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 0 3.15%2.65% Service 1.25% 0.25% 5.00%2.65% 0.4% beginning on January 1, 2022 0.5% beginning on January 1, 2034 0.6% beginning on January 1, 2039 13+ 3.90% 4 2.65% 6.00% 12 3.40% 2.50% 4.15%1.50% 3.00% 2.65% At December 31, 2021, the City reported a liability of $5,443,399 for its proportionate share of the City net pension liability and a liability of $786,745 for its proportionate share of the Park net pension liability. The City's proportionate share of the net pension liability was based on the City's wages as a proportion of total wages for the plan. The proportionate share used at the June 30, 2021, measurement date was 0.0041368 for the City plan and 0.0005979 for the Park plan. 2.90% Merit June 30, 2020 – The TPL as of June 30, 2021 was determined based on an actuarial valuation prepared as of June 30, 2020 rolled forward one year to June 30, 2021, using the following key actuarial assumptions and other inputs, such as benefit accruals and actual benefit payments during that time period. 2.65% 2 75 Experience Study Discount Rate 6.25%, net of investment expenses. Discount Rate Sensitivity 2021 City 2021 Park Classes of Plan Members Covered Money-Weighted Rate of Return Summary of Plan Provisions: Definitions Fiscal year Participation Average monthly earnings Member contributions 1% Decrease Current Rate 6.25% All full time employees of the State of Indiana and all full time employees of Political Subdivisions which have adopted the plan become members of PERF upon date of hire. Each member is required to contribute to an Annuity Savings Account at the rate of 3% of pay (unless the employer has opted to make the contribution for the employee). These contributions are kept on deposit and credited with interest based on the investment elections of each member until such time as they are withdrawn or annuitized by the member. The money-weighted rate of return equals investment performance, net of pension plan investment expense, adjusted for the changing amounts actually invested. For the fiscal year ending June 30, 2021, the moneyweighted return on the plan assets is 25.5%. Twelve month period ending June 30. 786,745$ 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 June 30, 2021 valuation was performed using census data provided by INPRS as of June 30, 2020. Standard actuarial techniques were used to roll forward the total pension liability computed as of June 30, 2020 to the June 30, 2021 measurement date using actual benefit payments during that period of time. 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, 2021 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. 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 20 to 30 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. 2,057,684$ 14,236,874$ 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. The discount rate is equal to the expected long-term rate of return on plan investments, net of investment expense and including price inflation. The discount rate decreased from the 6.75% used on the prior measurement date. 1% Increase (273,386)$ 7.25%5.25% (1,891,524)$ 5,443,399$ The monthly average of earnings during 20 quarters (in groups of 4 consecutive contribution quarters) preceding retirement that produce the highest such average. Earnings include basic salary, the member's 3% mandatory contribution paid by the employer, the member's salary reduction agreement under Section 125, 430(b), or 457 of the Internal Revenue Code, and up to $2,000 of additional compensation received from the employer in anticipation of the member's termination or retirement. 76 Minimum pension benefit Eligibility for Benefits Deferred vested Disability retirement Early retirement Normal retirement Pre-retirement death Monthly Benefits Payable Normal retirement Early retirement Deferred retirement Disability Pre-retirement death Cost-of-Living-Adjustments Forms of payment 10 or more years of vesting service. The employer-funded monthly pension benefits for members in pay status are increased periodically to preserve purchasing power that is diminished due to inflation. Such increases are not guaranteed by Statute and will only be provided by legislative action. The early retirement benefit is the accrued retirement benefit determined as of the early retirement date and payable commencing at the normal retirement date. A member may elect to have the benefit commence prior to normal retirement provided the benefit is reduced by 1/10% for each of the first 60 months and by 5/12% for each of the next 120 months that the benefit commencement date precedes the normal retirement date. The minimum monthly benefit is $180 if the member has at least 10 years of creditable service. The Annuity Savings Account benefit is in addition to the annuity benefits provided by employer contributions. During FYE 2018, the Annuity Savings Accounts were completely separated from the defined benefit plan, and so are no longer relevant to the valuation process. Member will receive a monthly benefit for life, but there are no monthly payments to anyone after death. However, the balance of the Annuity Savings Account will be distributed to the beneficiary or estate if it is larger than the payments previously made to the member. A "13th check" was paid to each member in pay status during fiscal year 2018, 2019, 2020 and 2021. The amount of the 13th check varied based on the years of creditable service the member had earned prior to retirement. The disability retirement benefit is the accrued retirement benefit determined as of the disability date and payable commencing the month following disability date without reduction for early commencement. The minimum monthly benefit is $180. The minimum pension benefit paid to a member with 10 or more years of creditable service receiving any pension benefit is $180 per month. Member will receive a monthly benefit for the rest of their life. If the member dies before receiving benefits for 5 years, the beneficiary will receive that monthly benefit for the remainder of those 5 years or a lump sum distribution equal to the present value of those payments. After 5 years, there are no payments available to the beneficiary. The spouse or dependent beneficiary is entitled to receive the monthly life benefit payable immediately under the assumption that the member retired on the later of age 50 or the date before the date of death and elected the joint and full survivor option. The minimum monthly benefit is $180 if the member has at least 10 years of creditable service. Legislation passed in the 2018 legislative session creates a funding mechanism to provide for future benefit increases or 13th checks. The INPRS Board has the authority to have employers contribute up to 1% of member pay into the fund. b. Benefit with No Guarantee a.5-Year Guaranteed Beneficiary Benefit The termination benefit is the accrued retirement benefit determined as of the termination date and payable commencing at age 65. If the member has 15 or more years of creditable service, then the member may elect to receive a reduced early retirement benefit prior to age 65. The minimum monthly benefit is $180 if the member has at least 10 years of creditable service. The normal retirement benefit is a pension payable for life with 60 months guaranteed and is equal to 1.1% of average monthly earnings multiplied by years of creditable service earned. The minimum monthly benefit is $180 if the member has at least 10 years of creditable service. 10 or more years of vesting service and no longer active. 5 or more years of vesting service and qualified for Social Security disability benefits or federal Civil Service disability benefits. Earliest of: Age 65 with 10 or more years of vesting service, Age 60 with 15 or more years of vesting service, or Age 55 with sum of age and vesting service equal to 85 or more. Age 50 with 15 or more years of vesting service. Increases or payments are made upon passed legislation subject to the availability of funds to provide the benefit. Legislation passed in 2021 provided for a 1% increase effective January 1, 2022 and no increase through the remainder of the biennium. 77 Actuarial Methods: Actuarial Cost Method COLA Surcharge Asset Valuation Method Anticipated Payroll Other Assumptions: Form of payment Marital status: Percent married Spouse's age Decrement timing Data Assumptions: • • • • 100% of members are assumed to elect the normal form of benefit payment, a single life annuity with a five- year certain period. Changes in actuarial assumptions: Employer Contribution Rates The actuarial cost method is Entry Age Normal - Level Percent of Payroll. The COLA Surcharge is developed by determining the assets needed at the start of the next biennium to fund the post-retirement benefit increases anticipated to be granted in that biennium. This amount is divided by the present value of expected payroll over which the accumulations will occur. Actuarial Value of Assets is equal to a five-year smoothing of gains and losses on the Market Value of Assets subject to a 20% corridor. Member will be paid a monthly benefit for life. After death, the same monthly benefit will be paid to the beneficiary for their lifetime. Based on the assumptions and methods previously described, an actuarially determined contribution rate is computed. The Board considers this information and has ultimate authority in setting the employer contribution rates. In order to select this option, the member must choose to combine at least a portion of their Defined Contribution Account with their lifetime monthly pension benefit. If selected, the member will receive a monthly benefit for the rest of their life. If the member dies before receiving payments for 5 years, the beneficiary will receive the pension portion of their monthly benefit for the remainder of those 5 years or a lump sum equal to the present value of those remaining payments. Also, upon death (whether death occurs before or after receiving 5 years of benefits), the beneficiary may receive any remaining balance of the Defined Contribution Account. Before age 62, the member’s benefits will equal the sum of the member’s Social Security estimate, multiplied by actuarial factors, and the member’s early retirement benefit. This will result in the member receiving a larger monthly benefit payment before age 62. After age 62, the member’s benefit will equal the difference between the member’s Social Security estimate, multiplied by actuarial factors, and the member’s pre-62 monthly pension benefit. Depending upon the member’s estimated Social Security disbursement, benefit payments may be greatly reduced or terminated at age 62. Member will be paid a monthly benefit for life. After death, one-half (1/2) of the benefit will be paid to the beneficiary for their lifetime. The investment return assumption was lowered from 6.75% (as of June 30, 2020) to 6.25%. Price inflation was lowered from 2.25% (as of June 30, 2020) to 2.00%. c. Joint with Full Survivor Benefits g. 5-Year Guaranteed Beneficiary Benefit with Cash Refund Member will be paid a monthly benefit for life. After death, two-thirds (2/3) of the benefit will be paid to the beneficiary for their lifetime. Male members are assumed to be three years older than their spouses and female members are assumed to be two years younger than their spouses. e. Joint with One-Half Survivor Benefits Decrements are assumed to occur at the beginning of the year. For active members, the Average Annual Compensation was increased by $200 for additional wages received upon termination, such as severance or unused sick leave. Miscellaneous adjustments d. Joint with Two-Thirds Survivor Benefits f. Integration with Social Security A member who retires between ages 50 and 62 may integrate the PERF monthly pension benefit with the member’s estimated Social Security benefits. This does not affect the amount of the benefit received from the Social Security Administration. 80% of male members and 65% of female members are assumed to be married and or to have a dependent beneficiary. The Anticipated Payroll for the fiscal year beginning July 1, 2021 is equal to the actual payroll during the year ending June 30, 2021, increased with one year of salary scale. General wage inflation was lowered from 2.75% (as of June 30, 2020) to 2.65%. Legislation granted a 1.00% cost-of-living adjustment effective January 1, 2022 to be paid from the Supplemental Reserve Account. No supplemental benefits were granted for fiscal year 2023. This replaces the COLA assumption of 0.4% for Fiscal Years 2022 and 2023 but does not change the assumption for future years.78 • • Changes in the Net Pension Liability: Changes for the year: Service Cost Interest Cost Experience (Gains)/Losses Assumption Changes Plan Amendments Benefit Payments Service Purchases: Employer Contributions Employee Contributions Member Reassignments Employer Contributions Non-employer Contributions Employee Contributions Net Investment Income Administrative Expenses Other Net Changes Changes for the year: Service Cost Interest Cost Experience (Gains)/Losses Assumption ChangesPlan Amendments Benefit Payments Service Purchases: Employer Contributions Employee ContributionsMember Reassignments Employer Contributions Non-employer Contributions Employee Contributions Net Investment IncomeAdministrative Expenses Other Net Changes Balances as of December 31, 2021 10,501,012$ 9,714,267$ 786,745$ - - - 766,151 1,785,300 (1,019,149) - 1,988,346 (1,988,346) - (10,764) 10,764 - 74 (74) (565,677) (565,677) - - - (1,828) (1,828) - - 374,875 (374,875) - - - 197 197 - 77 77 Balances as of December 31, 2021 72,655,270$ 67,211,871$ 5,443,399$ Net Pension Liability Parks Plan Increase (Decrease) Total Pension Liability Plan Fiduciary Net Position Balances as of December 31, 2020 9,734,861$ 7,928,967$ 1,805,894$ 123,302 - 123,302 646,282 - 646,282 9,534 - - - - - - 13,757,135 (13,757,135) - (74,476) 74,476 - 505 (505) 5,300,909 9,534 - - 65,967 - 3,709,010 - 1,363 1,363 - 534 534 - (12,646) (12,646) - - 2,593,718 (2,593,718) - 18,193 536,071 - - 536,071 18,193 12,494,767$ 853,111 - 853,111 Plan Fiduciary Net Position Net Pension Liability Balances as of December 31, 2020 There were no changes in actuarial methods since the prior year. Changes in plan provisions: House Enrolled Act No. 1001 was passed in April 2021 and granted a 1.00% cost-of-living adjustment effective January 1, 2022 to be paid from the Supplemental Reserve Account. No supplemental benefits were granted for fiscal year 2023. City Plan Increase (Decrease) Total Pension Liability 4,471,549 - 125,877 12,352,277 (7,051,368) (3,913,856) (3,913,856) 67,354,361$ 54,859,594$ - 4,471,549 125,877 - 3,709,010 65,967 Changes in actuarial methods: 79 Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: City Parks At December 31, 2021, the City reported a net pension liability of $5,443,399 for the City Plan and $786,745 for the Parks Plan. - Differences between expected and actual experience Total that will be recognized in pension expense (income) based on the table below - 7,067,756 Changes in proportion and differences between City contributions and proportionate share of contributions 395,738 - Net difference between projected and actual earnings on pension plan investments Net difference between projected and actual earnings on pension plan investments Deferred Outflows of Resources Total Deferred Inflows of Resources 26,909$ Total that will be recognized in pension expense (income) based on the table below 1,021,517 Pension contributions subsequent to measurement date Changes in proportion and differences between City contributions and proportionate share of contributions 15,504 15,709$ 1,297,023$ Pension contributions subsequent to measurement date 83,079 For the year ended December 31, 2021, the City recognized pension expense of $109,525 for the City plan and -$74,863 for the Park plan. Pension expense included net amortization of deferred amounts described below. At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the PERF Hybrid Plan from the following sources: Total Contributions subsequent to the June 30, 2021, measurement date of the net pension liability, but before the end of the employer's reporting period, are recognized as a reduction of the net pension liability in the subsequent fiscal period rather than in the current fiscal period. Differences between expected and actual experience 36,214 3,239,148 8,435,349$ Deferred Outflows of Resources 108,689$ 1,297,023 - 176,718 8,435,349 1,222,690 438,151 Changes in assumptions 2,738,065 314,903 2,022,405 5,261,553$ 561,069$ Deferred Inflows of Resources Changes in assumptions 122,918 186,180$ 80 Pension Plan Report and Fiduciary Net Position: Plan Description: Benefits Provided: Contributions and Funding Policy: At December 31, 2021, the City reported an asset of $6,281,665 for police and an asset of $8,077,642 for fire for its proportionate share of the net pension asset. The City's proportionate share of the net pension asset was based on the City's wages as a proportion of total wages for the plan. The proportionate share used at the June 30, 2021, measurement date was 0.0106286 for police and 0.0136674 for fire. (1,132,443) - 2023 Total Amount 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: 2025 (728,488) (206,443) (2,020,306) - 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. City (233,799)$ (292,000) (5,196,201)$ 2022 (1,314,964)$ 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND DISABILITY FUND Amount Parks Thereafter - 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 Asset: - The City's contribution to the plan for the year ending December 31, 2021, was $2,197,128 for police participants and $2,787,164 for fire participants, which was equal to the required contributions for the year. Year Ending December 31, (858,872)$ 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 2021, 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. 2026 (126,630) 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. 2024 81 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, 2021 Valuation Date:Assets June 30, 2021 Liabilities Price Inflation Future Salary Increases Cost-of-Living Increases As of June 30, 2021: As of June 30, 2020: Mortality Assumption Experience Study Discount Rate 6.25%, net of investment expenses. 2.1% compounded annually, beginning July 1, 2020. Actual COLA increases at July 1, 2019 (1.6%) and July 1, 2020 (2.1%) are reflected in the valuation. June 30, 2020 – The TPL as of June 30, 2021 was determined based on an actuarial valuation prepared as of June 30, 2020 rolled forward one year to June 30, 2021, using the following key actuarial assumptions and other inputs, such as benefit accruals and actual benefit payments during that time period. 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. 2.00% Disableds – General Disabled table. 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. The discount rate decreased from the 6.75% used on the prior measurement date. The INPRS Board of Trustees has established a funding policy of setting the employer contribution rate equal to the greater of 17.5% (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 plan is over 100% funded on a market value basis as of June 30, 2021 and, based on the funding policy, the total employer and member contribution rate is above the amount needed to fund ongoing accruals of the plan.The June 30, 2021 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. Pub-2010 Public Retirement Plans Mortality Tables (Amount-Weighted) with a fully generational projection of mortality improvements using SOA Scale MP-2019. Healthy Employees – Safety Employee table with a 3-year set forward for males and no set forward for females. 1.95% compounded annually, beginning July 1, 2020. Actual COLA increases at July 1, 2020 (2.1%) and July 1, 2021 (1.95%) 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. 2.65% 82 Discount Rate Sensitivity 2021 Police 2021 Fire Classes of Plan Members Covered Money-Weighted Rate of Return Summary of Plan Provisions: DefinitionsFiscal year Participation Member contributions Eligibility for BenefitsDeferred vested Disability retirement Early retirement Normal retirement Pre-retirement death Monthly Benefits PayableNormal retirement Early retirement Deferred retirement Disability: Hired before 1990 (6,281,665)$ Twelve month period ending June 30. 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: Current Rate 1% Increase If a member ends employment other than by death or disability before completing 20 years of active service, the member shall be entitled to the member's contributions plus accumulated interest. This benefit is not available to converted members. (8,077,642)$ All full-time, fully-paid police officers and firefighters who work for employers participating in the 1977 Fund and who are hired or rehired after April 30, 1977. 20 or more years of creditable service and no longer active. If termination is after earning 20 years of service, the termination benefit is the accrued retirement benefit determined as of the termination date and payable commencing of the normal retirement date. The member may elect to receive a reduced early retirement benefit. Members are assumed to contribute at the rate of 6% of salary until they have completed 32 years of service. 6.25% The June 30, 2021 valuation was performed using census data provided by INPRS as of June 30, 2020. Standard actuarial techniques were used to roll forward the total pension liability computed as of June 30, 2020 to the June 30, 2021 measurement date using actual benefit payments during that period of time. Immediate. 1% Decrease This disability benefit is only available to members hired prior to January 1, 1990 and who do not choose to be covered by the disability benefit for members hired after 1989. The disability benefit is equal to the benefit the member would have received if the member had retired. If the member does not have 20 years of service or is not at least age 52 on the date of disability, the benefit is computed as if the member does have 20 years of service and is age 52 on the date of disability. Early retirement benefits are reduced by 7% per year for commencement between ages 50 and 52. 5.25% 6,474,125$ 8,325,128$ Age 52 with 20 or more years of creditable service. As determined by a disability medical panel. Age 50 with 20 or more years of creditable service. The retirement benefit valued is 52% of the base salary (first-class salary) of a First Class Police Officer and Firefighter with 20 years of service, plus an additional 1% for each completed 6 months of service over 20 years up to a maximum of 76% with 32 years of service. 7.25% (21,319,165)$ (16,579,077)$ 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, 2021, the moneyweighted return on the plan assets is 25.5%. For catastrophic physical personal injuries that result in a degree of impairment of at least 67% and permanently prevents the member from performing any gainful work, the member will receive a disability benefit equal to 100% of base salary. Additionally, the benefit is increased by the increase in the base salary. 83 Hired after 1989 Class 1 Impairment: Class 2 Impairment: Class 3 Impairment: 2017 House Enrolled Act No. 1617 Enhanced Disability: Pre-retirement death: Surviving spouse Children Dependent parents No spouse or dependent Additional death benefits If a deceased member leaves no surviving spouse and no qualified child but does leave a dependent parent or parents, an amount equal to 50% of the member's benefit shall be paid to the parent or parents jointly during their lifetime. If the member does not have 20 years of service or is not at least age 52 on the date of death, the benefit is computed as if the member does have 20 years of service and is age 52 on the date of death. In either case, if the member does not have 20 years of service or is not at least age 52 on the date of death, the benefit is computed as if the member does have 20 years of service and is age 52 on the date of death. If a member dies other than in the line of duty, the spouse's benefit is equal to 70% of the monthly benefit the member was receiving or was entitled to receive on the date of death. For catastrophic physical personal injuries that result in a degree of impairment of at least 67% and permanently prevents the member from performing any gainful work, the member will receive a disability benefit equal to 100% of base salary. Additionally, the benefit is increased by the increase in the base salary. A funeral death benefit is paid to the heirs or estate upon the member's death from any cause and is equal to at least $12,000. An additional death benefit of $150,000 is paid from the Pension Relief Fund to a surviving spouse, children, or parent(s) if death occurs in the line of duty. A payment shall be made to each child of a deceased member equal to 20% of the member's benefit until the later of (a) the date the child becomes age 18, or (b) the date the child becomes age 23 if enrolled in a qualified school. If a child is at least 18 and is mentally or physically incapacitated, the child is entitled to an amount equal to the greater of 30% of the base salary, or 55% of the member's benefit payable for the duration of the incapacity. If the member does not have 20 years of service or is not at least age 52 on the date of death, the benefit is computed as if the member does have 20 years of service and is age 52 on the date of death. All other impairments that are not Class 1 or Class 2. The disability benefit is equal to a base benefit of 1% of base salary for each year of service up to a maximum of 30 years of service, plus an additional amount between 10% and 45% of this salary based on degree of impairment. If the member's total benefit is less than 30% of this salary and the member has fewer than 4 years of service, then the benefit is payable for a period equal to the years of service of the member. Otherwise, the benefit is payable until age 52, at which time the member is entitled to a retirement benefit based on 20 years of service. If a member dies in the line of duty, the spouse's benefit is equal to the monthly benefit the member was receiving or was entitled to receive on the date of death. A proven duty-related disease. The disability benefit is equal to a base benefit of 22% of base salary, plus an additional 0.5% of this salary for each year of service up to a maximum of 30 years of service, plus an additional amount between 10% and 45% of this salary based on degree of impairment. If the member's total benefit is less than 30% of this salary and the member has fewer than 4 years of service, then the benefit is payable for a period equal to the years of service of the member. Otherwise, the benefit is payable for life. A personal injury that occurs while on duty, while responding to an emergency, or due to an occupational disease. The disability benefit is equal to a base benefit of 45% of base salary, plus an additional amount between 10% and 45% of this salary based on degree of impairment. The benefit is payable for life, at which time the member is entitled to a retirement benefit based on the salary and service the member would have earned had the member remained in active service. This disability benefit is for members hired after 1989, or hired prior to January 1, 1990, who have chosen to be covered by this disability benefit. The following describes the three different classes of impairments and the amount of base benefit for each class: If a deceased member leaves no surviving spouse, no qualified dependent child, nor a dependent parent, a refund of the member's contributions plus accumulated interest will be made to the member's estate. 84 Cost-of-Living-Adjustments Forms of payment a. Single life annuity Actuarial Methods: Asset Valuation Method Employer Contribution Rate Other Assumptions: Marital status: Percent married Spouse's age Actuarial Cost Method 20% are assumed to be in the line of duty and 80% are other than in the line of duty. If the member elected to participate in the DROP, the member may, upon retirement, elect to forego DROP benefits, and instead receive monthly retirement benefits calculated as if the member never elected to participate in the DROP. These benefits would be based on accrued service and base salary as of the date the member retires. Deferred retirement option plan (“DROP”) b. Joint with 70%survivor benefits Member will be paid a monthly benefit for life. After death, 70% of the benefit will be paid to the spouse or parent for their lifetime or the dependent until age 18. Based on the assumptions and methods previously described, an actuarially determined contribution rate is computed. The Board considers this information and has ultimate authority in setting the employer contribution rate. When a member enters the DROP, a “DROP frozen benefit” will be calculated. This is equal to the member's monthly retirement benefit based on accrued service and base salary as of the date member enters the DROP. Upon DROP retirement, the member is eligible to receive a lump sum equal to the amount of the DROP frozen benefit multiplied by the number of months in the DROP. You may elect to receive this amount in three annual installments instead of in a single lump sum. In addition, the member will receive a monthly retirement benefit equal to the DROP frozen benefit. The member will not continue to accrue service credit for the years in the DROP. Cost of living adjustments will not apply to the frozen monthly benefit while in the DROP. The cost of living adjustments will begin to be applied to the frozen monthly benefit, however, in the year after the year in which the member retires. The DROP is an optional form of benefit, which allows members who are eligible for an unreduced retirement benefit to continue to work and earn a salary while accumulating a DROP benefit payable in a lump sum or three annual installments. A member who elects to enter the DROP shall execute an irrevocable election to retire on the DROP retirement date. The member shall select a DROP retirement date not less than 12 months and not more than 36 months after the member’s DROP entry date. While in the DROP, the member shall continue to make applicable fund contributions. Benefits for retired members are increased annually based on increases in the CPI-U index. The increase is subject to a 3% maximum and 0% minimum. Members are assumed to elect either a single life annuity or a 70% joint survivor benefit based on the marriage assumptions below. 80% of male members and 60% of female members are assumed to be married and or to have a dependent beneficiary. Decrement timing Male members are assumed to be three years older than their spouses and female members are assumed to be two years younger than their spouses. The anticipated payroll for the fiscal year following the valuation date is equal to the actual payroll during the year ending on the valuation date, increased with one year of salary scale. The Actuarial Value of Assets smooths the recognition of gains and losses on the Market Value of Assets over five years, subject to a 20% corridor. The actuarial cost method is Entry Age Normal - Level Percent of Payroll. Decrements are assumed to occur at the beginning of the year. Form of payment Members who are participating in the DROP are assumed to receive an annuity benefit commencing at the end of their DROP period, as well as a lump sum payment equal to the number of years they were in the DROP times their annual annuity benefit. Member will receive a monthly benefit for life, but there are no monthly payments to anyone after death. Members in DROP Active member death Anticipated Payroll 85 Data Assumptions: Changes in actuarial assumptions: • • • • • Changes in actuarial methods: • Changes in plan provisions: • Changes in the Net Pension Liability: Changes for the year: Service Cost Interest Cost Experience (Gains)/Losses Assumption Changes Plan AmendmentsBenefit Payments Service Purchases: Employer Contributions Employee Contributions Member ReassignmentsEmployer Contributions Non-employer Contributions Employee Contributions Net Investment Income Administrative ExpensesOther Net Changes Active member disability retirement 59% are assumed to be Class 1, 10% are assumed to be Class 2, 30% are assumed to be Class 3, and 1% are assumed to be a catastrophic disability (HEA 1617). The additional monthly amount determined under IC 36-8-8-13.5(f) based on the degree of impairment is assumed to be 17%. Cost-of-living adjustments were lowered from 2.10% (as of June 30, 2020) to 1.95%. For benefits paid under the 2017 House Enrolled Act No. 1617, the annual cost-of-living assumption was lowered from 2.75% to 2.65%. The investment return assumption was lowered from 6.75% (as of June 30, 2020) to 6.25%. Price inflation was lowered from 2.25% (as of June 30, 2020) to 2.00%. - (17,703,717) - (20,554) 20,554 -198 (198) 8,642,814 17,505,186 (8,862,372) Balances as of December 31, 2021 80,764,325$ 87,045,990$ - 1,765,346 (1,765,346) Police PlanIncrease (Decrease) Total Pension Liability Plan Fiduciary Net Position Net Pension Asset For members hired after 1989 who become disabled: Active member disability retirement For members hired before 1989 who become disabled: - 72,121,511$ 69,540,804$ 2,580,707$ (6,281,665)$ - 2,001,827 4,918,100 - 4,918,100 357,315 - 357,315 3,890,762 - 10,376 - 10,376 2,001,827 There were no changes in actuarial methods since the prior year. Balances as of December 31, 2020 - -- - 581,669 (581,669) - 17,703,717 3,890,762 - - (2,539,206) Senate Enrolled Act No. 396 changed the definition of the first-class officer salary but, based on a sample of newly collected first-class officer salaries, the change was deemed immaterial for purposes of this actuarial valuation and is, therefore, not reflected in this valuation. General wage inflation was lowered from 2.75% (as of June 30, 2020) to 2.65%. Interest on member balances was lowered from 3.50% (as of June 30, 2020) to 3.30%. 99% are assumed to be a non-catastrophic disability, and 1% are assumed to be a catastrophic disability (HEA 1617). - - - - - 3,640 3,640 (2,539,206) 86 Changes for the year: Service CostInterest Cost Experience (Gains)/Losses Assumption Changes Plan Amendments Benefit PaymentsService Purchases: Employer Contributions Employee Contributions Member Reassignments Employer ContributionsNon-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 At December 31, 2021, the City reported a net pension asset of $6,281,665 for the Police Plan and a net pension asset of $8,077,642 for the Firefighters Plan. - 747,972 (747,972) - 22,765,349 (22,765,349) - (26,430) 26,430 -254 (254) 11,113,862 22,510,055 (11,396,193) Balances as of December 31, 2021 103,855,478$ Balances as of December 31, 2020 92,741,616$ 89,423,065$ 3,318,551$ 13,343 For the year ended December 31, 2021, the City recognized pension expense of -$503,503 for police and -$655,390 for fire, which included net amortization of deferred amounts described below. At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to the 1977 Plan from the following sources: Pension contributions subsequent to measurement date (3,265,185) 459,474 10,317,002$ Changes in assumptions Total 3,425,079 5,148,358 10,317,002 924,873 9,162,670 Differences between expected and actual experience Net Pension Asset - 1,197,570 111,933,120$ (8,077,642)$ - - 49,555 Firefighters Plan Increase (Decrease)Total Pension Liability Plan Fiduciary Net Position - - Deferred Outflows of Resources - 13,343 - - - 2,574,165 6,324,224 - 6,324,224 459,474 - 4,680 - - 2,574,165 5,003,161 - 5,003,161 - 4,680 - 2,270,072 (2,270,072) - - (3,265,185) 6,345,928$ - - Deferred Inflows of Resources 92,716 Changes in proportion and differences between City contributions and proportionate share of contributions Total that will be recognized in pension expense (income) based on the table below 1,630,563$ 179,904$ Net difference between projected and actual earnings on pension plan investments 87 Firefighters Pension Plan Report and Fiduciary Net Position: G. Other Post-Employment Benefits Single-Employer Defined Benefit Healthcare Plan Plan Description (2,042,434)$ (2,634,315)$ 4,404,335 (1,753,031) - 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. Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience 231,340$ Pension contributions subsequent to measurement date (2,237,415) Thereafter 1,135,915 (1,365,531) 2025 2024 2026 (1,849,767) 2023 13,284,862$ 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 AmountYear Ending December 31, 1,498,883 Total Total that will be recognized in pension expense (income) based on the table below 8,148,230$ Contributions subsequent to the June 30, 2021, 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. Fire Amount Eligible retirees are those who retire from the City of Carmel with at least 20 years of creditable employment with a public employer. If any of the years of creditable employment includes employment with other public employers besides the City of Carmel, then the retiree must also be at least age 55 in order to be eligible. 2022 (6,635,515)$ 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. 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. 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. 6,649,347 81,871 (5,168,644)$ (2,374,441) Changes in assumptions 148,258 2,096,754$ 13,284,862 Changes in proportion and differences between City contributions and proportionate share of contributions - 11,782,349 1,189,302 (1,739,759) 895,031 692,932 1,468,656 Net difference between projected and actual earnings on pension plan investments 88 Cost sharing features are as follows: Non-prescription Coverage Deductible (2x Family) Physician Office Copay Coinsurance Percentage Out-of-Pocket Maximum (excluding Deductible) Lifetime Maximum Plan A participants receive $600 for single coverage and $800 for retiree-spouse coverage in lieu of HSA contribution. Prescription Coverage Copayment Retail Generic Formulary Brand Non-Formulary Brand Mail Order Dental Coverage Deductible (2x Family) Waived for preventative and orthodontia Copayment Percentage Preventative Basic Major/Orthodontia Annual Maximum $2,500 lifetime max for orthodontia Monthly Premiums: Medical and Vision Retiree Spouse Dental Retiree Spouse $2,500 $65.00 Subject to medical deductible and coinsurance 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. Coverage ends for the retiree at the retiree's Medicare eligibility date. The Plan is funded on a pay-as-you-go basis. No irrevocable trust has been established to fund the Plan. Accordingly, no trust fund financial statements are published. The Plan issues no separate reports. $50 $724.00 $761.00 $100 $1,115.00 100% 20% $750 $1,500 40% $2,000 Network 0% $4,000 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). Network $54.00 $895.00 $1,170.00 $10 0% 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. Plan B $52.00 50% $949.00 Plan B 2019/2020 2021/2022 80% $4,000 N/A Plan A N/A 2x Above $852.00 $50 $1,500 $3,000 365 days/visits inpatient/outpatient hospice combined The committed fund balance of the Health Self Insurance Fund includes $162,768 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. Dental Plan Plan A 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. Plan A $996.00 Plan B $61.00 Plan B $2,000 $60 N/A Non-NetworkPlan BPlan ANon-Network 365 days/visits inpatient/outpatient hospice combined 89 Employees Covered By Benefit Terms At December 31, 2021, the following members were projected to be covered by the terms of the plan: Inactive plan members currently receiving benefit payments Inactive plan members entitled to but not yet receiving benefit payments Active plan members: fully eligible Active plan members: not fully eligible Total Net OPEB Liability Changes in the Net OPEB Liability: Balances at December 31, 2020 Changes for the Year Service Cost Interest Changes in Plan Provisions Difference between Expected and Actual Experience Changes in Assumptions Total OPEB Net Changes Balances at December 31, 2021 Sensitivity of the Net OPEB Obligation to Changes in the Discount Rate: Total OPEB Liability Plan Fiduciary Net Position Net OPEB Liability Sensitivity of the Net OPEB Obligation to Changes in the Healthcare Cost Trend Rate: Total OPEB LiabilityPlan Fiduciary Net PositionNet OPEB Liability 1% Decrease 1% Increase 29,095,638$ 25,256,131$ - - 29,095,638$ 25,256,131$ Current Rate (2,568,311) -$ For the year ended December 31, 2021, the City contributed $973,405 to the Plan for current premiums. - The excess, if any, of the Total OPEB Liability over the Plan Fiduciary Net Position is the Net OPEB Liability. Under this method, actuarial gains (losses), as they occur, reduce (increase) the Net OPEB Liability and are explicitly identified and amortized in the annual expense. Total OPEB 29,621,257$ - (973,406) 1,012,016 27,135,817$ 1% Decrease 1,415,051 24,994,662$ - 24,994,662$ 443 The Entry Age Normal Actuarial Cost Method used in the current OPEB actuarial valuation is unchanged from the prior OPEB actuarial valuation. Liability (973,406) 45 29,704,128$ 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. 142 - - - 29,704,128$ - Plan Fiduciary Net Position The following presents the net OPEB liability of the Employer, as well as what the Employer's net 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: 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. Under this method, as used in the December 31, 2021, 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. (2,568,311) 27,135,817$ -$ 27,135,817$ Benefit Payments (6,005,917) - 27,135,817$ (6,005,917) - 1,983,945 - - 29,621,257$ 1% Increase 256 Net OPEB 1,415,051 - 1,012,016 - The following presents the net OPEB liability of the Employer, as well as what the Employer's net 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: 1,983,945 90 Current Rate $ 27,135,817 $ 27,135,817 - OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB Liability Experience Losses / (Gains) Changes in Assumptions Investment Losses / (Gains) Measurement Date December 31, 2021 Valuation Date December 31, 2021 COST METHOD Entry Age Normal (Level % of Pay) ECONOMIC ASSUMPTIONS: Discount rate Discount rate basis Coverage rate Spouses Disability 8,031,031$ Actuarial Methods and Assumptions None assumed. Deferred Inflows of Resources Amount 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. At December 31, the deferred outflows / (inflows) of resources based on obligations for the Plan are as follows: For the year ended December 31, 2021, the City recognized OPEB expense of $1,761,415. OPEB expense represents the change in the net OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in investment gain/loss, and actuarial assumptions or method. At December 31, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Total Deferred Outflows of Resources S&P Municipal Bond 20-Year High Grade Rate Index* 2,686,305$ - 2022 2,686,305 Active participants: 35% are assumed to cover a spouse, with male spouses two years older than female spouses. 2.25% per annum as of December 31, 2021 (665,652) (665,652) - (665,652) 2025 Retired participants: Age and marital status based on actual census data. 3.30% per annum as of December 31, 2019 1,055,234 2026 3.30% per annum as of December 31, 2020 (2,016,466) -$ (5,344,726)$ 2023 2024 6,975,797$ (665,652)$ Thereafter Year Ending December 31, (665,652) 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. 91 Mortality: Civilian employees Police and fire employees Mortality improvement Turnover According to Sarason Table T-1. Retirement Rates: Civilian employees: Police and fire employees: Plan mix: Plan A Plan B Per capita claims cost: Age Age 55-59 All Ages 60-64 Age Age 55-59 All Ages 60-64 Inflation; health care cost trend rate: Year Medical Dental Medical Dental 0 1 to 2 3 to 5 6 to 8 9 to 10 11+ 5.0% 8.5% 8.0% 5.0% Female 20% 2021/2022 2% 7% 746$ 54 66 Age 56 57 Age 5.0% 5.0% 40% 25% 22% 5.0% 45-51 100% 17% Male Female 5.0% Male Female 2021/2022 Medical & Vision 5.0% 13,890$ 13,740$ 2021/2022 Dental 6.0% 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. 6.0% 13,247$ 68 69 22.5% 9.0% 19% 7.0%7.0% Rate 2.5% 65+ 35% 12% 14% 100% 64 63 4% Female 5.0% 746$ 17,816$ 30.0% 14% 5.0% 6.0% 30% 9.0% 5% Male 8.0% 26% 21% 5% 2019/2020 Dental 25% 67 704$ Female 2% 55 2% 4% 5% 3% 100.0% 75% 30% 24% 8% 5% 2021/2022 61 Age 70-74 4% 75+ Male 17% 7.5% 2019/2020 Male 5.0% 6.0% 5.0% 5.0% 8.5% 16,991$ 19% 13,104$ 15,353$ 3% 20% 59 52-54 60 55-60 32% 4% 16% 65 Male 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. 50-53 Female 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. 2019/2020 Medical & Vision 61-64 19% Varies by age and status; representative rates follow: 704$ 62 58 16,098$ 92 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 (asset) Deferred outflows of resources Deferred inflows of resources Pension expense (income) Total pension liability Plan net position Net pension liability Deferred outflows of resources Deferred inflows of resources Pension expense (income) I. Deferred Compensation Plan 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. 8,976,936$ 20,324,944$ 33,334,238$ 7,276$ 76,508$ Public Employees' 1,443,162$ 1,099,721$ 5,892,466$ 9,732,372$ 8,187,979$ 76,926,138 276,055,503 9,035,752$ 8,318,027$ 8,997,143$ 50,752,933$ PensionOfficer's Pension 1977 Police Officers' and Firefighters' Pension and Disability 14,494,157$ 1925 Police 130,048 1,297,023$ (74,863)$ 311,326$ *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. (14,359,307)$ 9,732,373$ 6,230,144$ Retirement Total 10,501,012$ 786,745$ 561,069$ Water Utility 184,619,803$ 285,091,255$ 83,156,282$ 1937 Firefighters' -$ City- All OtherParks 9,714,267 Retirement* 198,979,110 Public Employees' 9,472,109$ Sewer Utility 34,662$ City Plan 12,430,228$ -$ 890$ 5,822,621$ 288,692$ (524,213)$ 34,662$ 23,601,865$ (1,158,893)$ Total 20,207 11,498,944 8,762,450 46,950,477 931,284$ 709,659$ 3,802,456$ 900,172$ 685,951$ 83,156,282$ 76,926,138 6,230,144$ 5,822,622$ 3,675,430$ 18,738$ 14,279$ 93 J. Interfund Receivables and Payables The composition of the interfund balances as of December 31, 2021 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 nonmajor in the prior year were reclassified as major for the year ended December 31, 2021: Reclassification from major to nonmajor funds for 2021: 2016 Project Fund 2017 Project Fund 348,989$ 348,989$ 774,920 Water Utility invoices include charges for Sewer and Storm Water, and these charges are remitted as collected, one month in arrears. Total 68,108$ 67,192,498$ Amount 692,940$ 1,467,860$ The Motor Vehicle Highway Fund is due $68,108 from the Storm Water Fund to comply with an ordinance requiring certain transfers. 68,108$ Major Nonmajor Governmental 85,805,939$ 124,114,695$ (2,420,970) (16,192,471) 2,420,970 16,192,471 Total fund balances of nonmajor funds as previously reported at December 31, 2020 Total fund balances as of January 1, 2021 38,308,756$ 56,922,197$ - - 124,114,695$ 94 2021 2020 2019 2018 2017 Total OPEB Liability Service Cost 1,415,051$ 1,831,489$ 1,420,618$ 1,519,286$ 1,330,012$ Interest Cost 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 (6,005,917) (930,479) (107,011) (787,315) (418,473) Changes in Assumptions 1,983,945 - 1,205,476 (676,338) (1,046,528) (973,405) (906,212) (884,567) (539,334) (413,786) Net Changes in Total OPEB Liability (2,568,310) 989,048 2,637,402 377,327 481,204 Total OPEB Liability - Beginning 29,704,128 28,715,080 26,077,678 25,700,351 25,219,147 Total OPEB Liability - Ending 27,135,818 29,704,128 28,715,080 26,077,678 25,700,351 Plan Fiduciary Net Position - Beginning - -- -- Plan Fiduciary Net Position - Ending - -- -- Net OPEB Liability 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, 2021 SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS 95 2021 2020 2019 2018 2017 Total OPEB Liability - Ending 27,135,818$ 29,704,128$ 28,715,080$ 26,077,678$ 25,700,351$ Plan Fiduciary Net Position - Ending - - - - - Net OPEB Liability 27,135,818 29,704,128 28,715,080 26,077,678 25,700,351 Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00% 0.00% 0.00% 0.00% 0.00% Covered-Employee Payroll 35,069,203$ 45,468,975$ 44,359,976$ 38,986,588$ 38,047,090$ Net OPEB Liability as a Percentage of Covered-Employee Payroll 77.38% 65.33% 64.73% 66.89% 67.55% The most recent actuarial valuation date is December 31, 2021. Additional information on the City's OPEB can be found in Note II.G. on pages 88–92 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. City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION SCHEDULE OF NET OPEB LIABILITY For the Fiscal Year Ended December 31, 2021 Notes to Schedule: 96 SUMMARY OF MAIN PLAN PROVISIONS METHOD AND ASSUMPTIONS Entry Age Normal (Level % of Pay) ASSUMPTIONS: Discount Rate 2.25% per annum as of December 31, 2021 3.30% per annum as of December 31, 2020 3.30% per annum as of December 31, 2019 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. Plan Mix Plan A: 75%; Plan B: 25% 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 9.0% in the first year, graded down to 6.0% over 10 years; dental costs were trended at a flat 5.0% per year. OTHER POST-EMPLOYMENT BENEFIT PLAN December 31, 2021 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. 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$10,800 per year). Retiree contributions for a married couple that works for the city are based on service of the individual employed for the longer period of time (not to exceed 75% of the total premium). The city contributes 100%of the premium for medical and dental coverage for those who are killed in the line of duty with no maximum contribution. The city pays 50% for work-related disabilities. All other retirees pay 100% of the premium rate. City of Carmel, Indiana NOTES TO THE REQUIRED SUPPLEMENTARY INFORMATION 97 1925 Police Officers' Pension Plan:2021202020192018201720162015Actuarially determined contribution579,819$ 607,355$ 564,928$ 564,928$ 557,208$ 546,748$ 534,143$ 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 applicable1937 Firefighters' Pension Plan: 2021202020192018201720162015Actuarially determined contribution598,830$ 565,704$ 584,282$ 584,282$ 577,369$ 553,519$ 562,264$ 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 applicableSee notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF EMPLOYER CONTRIBUTIONSDecember 31, 2021Contributions in relation to the actuarially determined contributionContributions in relation to the actuarially determined contribution98 1925 Police Officers' Pension Plan:2021202020192018201720162015Total pension liability8,318,027$ 8,616,378$ 9,650,494$ 9,893,565$ 10,119,548$ 10,119,548$ 10,179,012$ Less, fiduciary net position130,048 136,916 145,316 131,361 147,471 148,470 147,785 Net pension liability 8,187,979$ 8,479,462$ 9,505,178$ 9,762,204$ 9,972,077$ 9,971,078$ 10,031,227$ 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 applicable1937 Firefighters' Pension Plan: 2021202020192018201720162015Total pension liability8,997,143$ 9,278,530$ 10,366,629$ 10,601,151$ 10,883,369$ 10,883,369$ 10,997,707$ Less, fiduciary net position20,207 14,354 36,220 5,405 26,027 30,375 39,365 Net pension liability 8,976,936$ 9,264,176$ 10,330,409$ 10,595,746$ 10,857,342$ 10,852,994$ 10,958,342$ 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 applicableSee notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.City of Carmel, IndianaSCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOSDecember 31, 2021Fiduciary net position as a percentage of the total pension liabilityFiduciary net position as a percentage of the total pension liabilityREQUIRED SUPPLEMENTARY INFORMATION99 1925 Police Officers' Pension Plan:2021202020192018201720162015Total pension liability - beginning8,616,378$ 9,650,494$ 9,893,565$ 10,119,548$ 10,119,548$ 10,179,012$ 10,220,740$ Interest on total pension liability288,782 329,811 339,070 354,913 355,402 363,703 367,444 Effect of economic/demographic gains and losses - (599,196) - 338,525 201,812 122,896 125,844 Effect of assumptions changes or inputs- (148,471) - (337,280) - - - Benefit payments(587,133) (616,260) (582,141) (582,141) (557,214) (546,063) (535,016) Total pension liability - ending8,318,027 8,616,378 9,650,494 9,893,565 10,119,548 10,119,548 10,179,012 Fiduciary net position - beginning136,916 145,316 131,361 147,471 148,470 147,785 148,615 Employer contributions579,819 607,355 564,928 564,928 557,208 546,748 534,143 Net investment income446 505 4,121 1,203 882 - 143 Benefit payments(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 - ending130,048 136,916 145,316 131,361 147,471 148,470 147,785 Net pension liability - ending $ 8,187,979 $ 8,479,462 $ 9,505,178 $ 9,762,204 $ 9,972,077 $ 9,971,078 $10,031,227 1937 Firefighters' Pension Plan: 2021202020202018201720162015Total pension liability - beginning9,278,530$ 10,366,629$ 10,601,151$ 10,883,369$ 10,883,369$ 10,997,707$ 11,028,789$ Interest on total pension liability311,713 355,711 367,840 385,277 385,817 393,503 396,965 Effect of economic/demographic gains and losses - (699,325) - 289,272 192,103 54,668 125,812 Effect of assumptions changes or inputs- (156,836) - (351,553) - - - Benefit payments(593,100) (587,649) (602,362) (605,214) (577,920) (562,509) (553,859) Total pension liability - ending8,997,143 9,278,530 10,366,629 10,601,151 10,883,369 10,883,369 10,997,707 Fiduciary net position - beginning14,354 36,220 5,405 26,027 30,375 39,365 30,909 Employer contributions598,830 565,704 584,282 584,282 577,369 553,519 562,264 Net investment income123 79 847 310 224 - 51 Benefit payments(593,100) (587,649) (602,362) (605,214) (577,920) (562,509) (553,859) Administrative expenses- - - - (4,021) - - Other- - 48,048 - - - - Fiduciary net position - ending20,207 14,354 36,220 5,405 26,027 30,375 39,365 Net pension liability - ending $ 8,976,936 $ 9,264,176 $10,330,409 $10,595,746 $10,857,342 $10,852,994 $10,958,342 See notes to schedules, 1925 Police and 1937 Firefighters' Pension Plans.December 31, 2021SCHEDULE OF CHANGES IN NET PENSION LIABILITYREQUIRED SUPPLEMENTARY INFORMATIONCity of Carmel, Indiana100 Assumption changes:Discount Rate:3.48% Police Officers; 3.48% Firefighters for 2021 and 20203.54% Police Officers; 3.58% Firefighters for 2019Valuation date:Methods and assumptions used to determine most current contribution rate:Actuarial cost methodN/AAmortization method N/ARemaining amortization period N/ARetirement age N/AMortality N/AOther information N/AREQUIRED SUPPLEMENTARY INFORMATIONNote: The City is presenting its seventh ACFR since 2007. The information above is presented for as many years as available. The schedules are intended to show information for 10 years. Years not shown are not available.Actuarially determined contribution rates are calculated as of January 1 of the fiscal year in which contributions are reported.Effective with the December 31, 2020 measurement date, the future mortality improvement assumption was updated from MP-2018 to MP-2020, which is the latest scale published by the Society of Actuaries.City of Carmel, IndianaNOTES TO SCHEDULES1925 POLICE OFFICERS' AND 1937 FIREFIGHTERS' PENSION PLANSDecember 31, 2021101 Public Employees' Retirement Fund: Year Ended City's Proportion of the Net Pension Liability (Asset) City's Proportionate Share of the Net Pension Liability (Asset) City's Covered Payroll Net Pension Liability (Asset) as a Percentage of Covered Payroll Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) City: June 30, 2021 0.0041368 5,443,399$ 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, 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, 2021 OF THE NET PENSION LIABILITY 102 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 (Asset) as a Percentage of Covered Payroll Plan Fiduciary Net Position as a Percentage of Total Pension Liability (Asset) Police: 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, 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, 2021 (Continued) Note: The City is presenting its seventh 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 103 Public Employees' Retirement 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 City: 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, 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$-$ 3,089,990$ 9.6% 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, 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, 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, 2021 104 Changes in actuarial assumptions: Public Employees' Retirement Fund and 1977 Police Officers' and Firefighters' Pension and Disability Fund: Public Employees' Retirement Fund: 1977 Police Officers' and Firefighters' Pension and Disability Fund: Changes in actuarial methods: Changes in plan provisions: Public Employees' Retirement Fund: 1977 Police Officers' and Firefighters' Pension and Disability Fund: City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION NOTES TO SCHEDULESPUBLIC EMPLOYEES' RETIREMENT AND 1977 POLICE OFFICERS' AND FIREFIGHTERS' PENSION AND DISABILITY FUNDS The investment return assumption was lowered from 6.75% (as of June 30, 2020) to 6.25%. Senate Enrolled Act No. 396 changed the definition of the first-class officer salary but, based on a sample of newly collected first-class officer salaries, the change was deemed immaterial for purposes of this actuarial valuation and is, therefore, not reflected in this valuation. Note: Covered payroll for the purposes of this schedule was determined as of the City's fiscal year ended December 31. December 31, 2021 Note: The City is presenting its seventh 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. House Enrolled Act No. 1001 was passed in April 2021 and granted a 1.00% cost-of-living adjustment effective January 1, 2022 to be paid from the Supplemental Reserve Account. No supplemental benefits were granted for fiscal year 2023. Cost-of-living adjustments were lowered from 2.10% (as of June 30, 2020) to 1.95%. For benefits paid under the 2017 House Enrolled Act No. 1617, the annual cost-of-living assumption was lowered from 2.75% to 2.65%. General wage inflation was lowered from 2.75% (as of June 30, 2020) to 2.65%. Price inflation was lowered from 2.25% (as of June 30, 2020) to 2.00%. Legislation granted a 1.00% cost-of-living adjustment effective January 1, 2022 to be paid from the Supplemental Reserve Account. No supplemental benefits were granted for fiscal year 2023. This replaces the COLA assumption of 0.4% for Fiscal Years 2022 and 2023 but does not change the assumption for future years. Interest on member balances was lowered from 3.50% (as of June 30, 2020) to 3.30%. 105 Variance Actual With FinalBudgetaryBudget Basis Positive Original Final Amounts (Negative) REVENUES:Property tax 43,995,746$ 43,995,746$ 41,832,811$ (2,162,935)$ Income tax 44,619,726 44,619,726 50,335,437 5,715,711 Licenses and permits 2,475,030 2,475,030 - (2,475,030) Intergovernmental 108,296 108,296 519,922 411,626 Charges for services 3,400,828 3,400,828 1,390,129 (2,010,699) Fines and forfeits 456,850 456,850 292,965 (163,885) Miscellaneous - - 2,264,838 2,264,838 Other 15,187,539 13,988,084 12,737,478 (1,250,606) Total revenues: budgetary basis 110,244,015 109,044,560 109,373,580 329,020$ Increase in available income tax receivable 185,915 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 (899,989) Total revenues reported on the Statement of Revenues and Expenditures 107,339,000$ EXPENDITURES: Current: General government: City Controller: Personal services 888,579$ 888,579$ 812,206$ (76,373)$ Supplies 10,919 10,919 4,471 (6,448) Other services and charges 278,765 278,765 163,544 (115,221) Capital outlay 10,088 10,088 3,599 (6,489) City Clerk: Personal services 671,269$ 699,269$ 585,323 (113,946)$ Supplies 10,000 10,000 4,554 (5,446) Other services and charges 98,195 98,195 27,169 (71,026) Capital outlay 35,000 35,000 9,265 (25,735) Mayor's Office:- Personal services 493,790 493,790 435,386 (58,404) Supplies 4,684 4,684 4,668 (16) Other services and charges 4,421,517 4,421,517 4,177,413 (244,104) Capital outlay 61,349 61,349 28,464 (32,885) City Council: Personal services 387,713 387,713 372,224 (15,489) Supplies 4,000 4,000 1,204 (2,796) Other services and charges 193,862 193,862 147,768 (46,094) Capital outlay 2,690 2,690 1,893 (797) General Fund Budgeted Amounts 106 Continued on next page. City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND For the Fiscal Year Ended December 31, 2021 Variance Actual With Final Budgetary BudgetBasisPositive Original Final Amounts (Negative) Expenditures (continued): Current (continued):General government (continued): Board of Public Works:Personal services 21,872 21,872 15,075 (6,797) Debt service 16,209,412 16,209,412 16,206,107 (3,305) Administration:Personal services 478,725 478,725 444,415 (34,310) Supplies 68,400 68,400 49,904 (18,496) Other services and charges 2,507,950 2,507,950 2,111,181 (396,769) Capital outlay 815,071 815,071 691,724 (123,347) Brookshire Golf Course:Personal services 898,052 898,052 791,370 (106,682) Supplies 71,000 71,000 47,950 (23,050) Other services and charges 449,100 449,100 407,477 (41,623) Capital outlay 476,380 476,380 237,441 (238,939) Building Operations:Supplies 8,000 8,000 - (8,000) Other services and charges 3,449,493 3,449,493 2,977,159 (472,334) Capital outlay - - - - City Court: Personal services 606,760 606,760 519,416 (87,344) Supplies - - - - Other services and charges 137,200 137,200 89,786 (47,414) Capital outlay 15,000 15,000 6,768 (8,232) Law Department: Personal services 1,212,065 1,212,065 793,300 (418,765) Supplies 3,025 3,025 6,565 3,540 Other services and charges 665,278 665,278 399,361 (265,917) Capital outlay 48,105 48,105 62,367 14,262 Community Services: Personal services 2,797,810 2,797,810 2,691,820 (105,990) Supplies 61,337 61,337 41,265 (20,072) Other services and charges 1,549,874 1,556,746 893,433 (663,313) Capital outlay 633,926 633,926 423,524 (210,402) Personnel/ Human Resources:- Personal services 598,865 598,865 607,419 8,554 Supplies 1,000 1,000 28 (972) Other services and charges 150,645 280,645 130,962 (149,683) Capital outlay 13,065 13,065 1,514 (11,551) For the Fiscal Year Ended December 31, 2021 (Continued) City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND Budgeted Amounts 107 Continued on next page. Variance Actual With FinalBudgetaryBudget Basis Positive Original Final Amounts (Negative) Expenditures (continued): Current (continued): Information Systems: Personal services - - - - Supplies - - - - Other services and charges 4,500 4,500 - (4,500) Capital outlay - - - - City Property Maintenance: Supplies 215,092 215,092 133,560 (81,532) Other services and charges 1,479,882 1,479,882 871,351 (608,531) Public Affairs/ Community Relations: Personal services 1,065,333 1,065,333 1,001,135 (64,198) Supplies 3,580 3,580 2,511 (1,069) Other services and charges 3,600,962 3,600,962 2,810,005 (790,957) Capital outlay 46,001 46,001 22,073 (23,928) Total general government 47,935,180 48,100,052 42,267,117 (5,832,935) Public Safety: Fire Department: Personal services 26,989,914 27,597,135 28,168,260 571,125 Supplies 446,189 446,189 330,718 (115,471) Other services and charges 2,578,116 2,578,116 1,888,059 (690,057) Police Department: Personal services 22,728,500 22,761,081 21,346,161 (1,414,920) Supplies 684,170 706,170 589,397 (116,773) Other services and charges 1,680,499 1,727,899 1,406,960 (320,939) Capital outlay 1,873,925 2,465,676 1,600,767 (864,909) Communication Center: Personal services 2,147,961 2,147,961 2,017,530 (130,431) Supplies 52,011 52,011 44,907 (7,104) Other services and charges 2,259,619 2,259,619 1,547,358 (712,261) Capital outlay 792,539 792,539 502,631 (289,908) Total public safety 62,233,443 63,534,396 59,442,748 (4,091,648) Budgeted Amounts 108 City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND For the Fiscal Year Ended December 31, 2021 (Continued) Continued on next page. Variance Actual With FinalBudgetaryBudget Basis Positive Original Final Amounts (Negative) Expenditures (continued): Current (continued): Culture and recreation:Parks Department: Personal services 2,819,882 2,819,882 2,687,944 (131,938) Supplies 140,011 140,011 108,039 (31,972) Other services and charges 1,440,637 1,440,637 1,063,473 (377,164) Capital outlay 14,050 14,050 5,789 (8,261) Total culture and recreation 4,414,580 4,414,580 3,865,245 (549,335) Economic Development: Redevelopment Department:Personal services 687,813 687,813 656,438 (31,375) Supplies 3,700 3,700 5,031 1,331 Other services and charges 91,292 91,292 119,236 27,944 Capital outlay 9,200 9,200 3,334 (5,866) Total economic development 792,005 792,005 784,039 (7,966) Transfers to nonmajor funds - -222,500 222,500 Other Expenditure - -130,238 130,238 Total expenditures, budgetary basis 115,375,208$ 116,841,033$ 106,711,887 (10,129,146)$ Increase in accrued liabilities: Accounts payable 81,312 Accrued payroll and withholdings payable 280,420 Capital leases 2,334,029 Transfers to other funds (15,653,056) Total expenditures reported on the Statement of Revenues and Expenditures 94,933,241$ treated as expenditures on a budgetary basis Budgeted Amounts 109 City of Carmel, Indiana REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES GENERAL FUND For the Fiscal Year Ended December 31, 2021 (Continued) City of Carmel, Indiana NOTES TO REQUIRED SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES December 31, 2021 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. 110 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. 111 Continued on next page. City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS - INFORMATION (Continued) 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 activities. 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. 112 Continued on next page. City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS - INFORMATION (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. 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. 113 Continued on next page. City of Carmel, Indiana NONMAJOR GOVERNMENTAL FUNDS - INFORMATION (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 Illinois Street Construction Fund accounts for certain payments in lieu of taxes required by contract with the payor to be used for certain capital projects. The Old Town/126th Street Construction Fund accounts for the accumulation of resources for certain community improvement projects. The 2016 Property Tax Bond Construction Funds 1-6 and 9-13 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 2017 A Bond Construction Fund is a capital projects fund that accounts for the proceeds of a bond expected to be paid from tax increment revenue. 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. 114 City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street ASSETS: Cash and cash equivalents 2,264,499$ $ 33,169 $ 1,716,861 2,859,859$ 193,079$ 2,193,298$ Property tax receivable - - - - - - Due from other governmental funds - - - - - - Due from related utility - - - - - - Intergovernmental receivables - - - - - - Accounts receivable - - - - - - Total assets 2,264,499 33,169 1,716,861 2,859,859 193,079 2,193,298 LIABILITIES: Accounts payable 32,764 - 19,294 97,193 7,392 496,956 Claims payable - - - - - - Due to other funds - - - - - - Accrued payroll - - 31,927 37,311 - - Total liabilities 32,764 - 51,221 134,504 7,392 496,956 DEFERRED INFLOW OF RESOURCES:Deferred revenue - - - - - - Unavailable revenue - -- -- - Total deferred inflow of resources - -- -- - FUND BALANCE: Restricted: General government - - - - - - Public safety - 33,169 - - - - Highways and streets - -- - - 1,696,342 Drainage and other capital assets - -- - - - Economic development - -- - - - Culture and recreation 2,231,735 - 1,665,640 2,725,355 185,687 - Committed:General government - - - - - - Public safety - - - - - - Highways and streets - - - - - - Drainage and other capital assets - - - - - - Economic development - - - - - - Unassigned - -- -- - TOTAL FUND BALANCES 2,231,735 33,169 1,665,640 2,725,355 185,687 1,696,342 TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 2,264,499$ 33,169$ 1,716,861$ 2,859,859$ 193,079$ 2,193,298$ Continued on next page. Special Revenue Funds 115 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Deferral User Fee Barrett Law Barrett Law Surplus Storm Water 4CDC Operating Fund 184,934$ 118,598$ 6$ $ 166,369 $ 7,480,708 $ 2,113,778 - - - - - - - - - - - - - - - - 348,989 - - - - - - - - - - - - - 184,934 118,598 6 166,369 7,829,697 2,113,778 103 3,872 - - 2,262 105,972 - - - - - - - - - - 68,108 - 514 - - - - - 617 3,872 - -70,370 105,972 - - - - - - - -- -- - - -- -- - - - - - - - 184,317 114,726 - - - - - - - - 7,759,327 - - - 6 166,369 - - - - - - - 1,525,271 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 482,535 - -- -- - 184,317 114,726 6 166,369 7,759,327 2,007,806 184,934$ 118,598$ 6$ 166,369$ 7,829,697$ 2,113,778$ Continued on next page. Special Revenue Funds 116 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) CMCDC Operating Fund Motor Vehicle Highway Fund MIHP Health Self Insurance Workers Comp Support for the Arts $ 82,780 4,749,017$ 8,529$ 1,768,139$ 473,235$ 19,134$ - 399,792 - - - - - 68,108 - - - - - - - - - - - - - - - - - - - -- - 82,780 5,216,917 8,529 1,768,139 473,235 19,134 - 576,249 - 135,666 - - - - - 1,072,881 - - - - - -- - -160,536 - -- - - 736,785 - 1,208,547 - - - - - - - - - 399,792 - -- - - 399,792 - -- - - - - - - - - - 8,529 - - - - 4,080,340 - - - - - - - - - - 82,780 - - - - - - - - - - - - - - 559,592 473,235 - - - - - - - - - - - - - - - - - - - - - - - - 19,134 - -- -- - 82,780 4,080,340 8,529 559,592 473,235 19,134 82,780$ 5,216,917$ 8,529$ 1,768,139$ 473,235$ 19,134$ Continued on next page. Special Revenue Funds 117 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Keystone Non- Reverting Bicycle Facilities Non- Reverting Center Green Ice Non- Reverting Events & Festival Non- Reverting Code Enforcement Non- Reverting Sidewalk Non- Reverting 138,375$ 31,619$ 437,874$ 26,666$ 41,022$ 30,387$ - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - 138,375 31,619 437,874 26,666 41,022 30,387 - - 7,543 - - - - - - - - - - - - - - - -- -- -- -- 7,543 - -- - - - - - - -- -- -- -- -- -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 138,375 31,619 430,331 26,666 41,022 30,387 - - - - - - - - - - - - - -- -- - 138,375 31,619 430,331 26,666 41,022 30,387 138,375$ 31,619$ 437,874$ 26,666$ 41,022$ 30,387$ Continued on next page. Special Revenue Funds 118 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Urban Forestry Clerk's Record Perpetuation Court Interpreter Public Defender Judicial Salary Fees Historic Preservation Fund 74,759$ 301,205$ 80$ 8,039$ 99,493$ 209,566$ - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - 74,759 301,205 80 8,039 99,493 209,566 - 213 - - 735 - - - - - - - - - - - - - - - -- -- - 213 - -735 - - - - - - - - - -- -- - - -- -- - 300,992 - - - - - - 80 8,039 98,758 - - - - - - - - - - - - - - - - - - - 74,759 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 209,566 - -- -- - 74,759 300,992 80 8,039 98,758 209,566 74,759$ 301,205$ 80$ 8,039$ 99,493$ 209,566$ Continued on next page. Special Revenue Funds 119 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Fire Gift Police Gift Parks Gift Community Relations Gift Redevelopment Commission Gift Economic Development 24,150$ 180,344$ 106,938$ 169,381$ 32,502$ 53,565$ - - - - - - - - - - - - - - - - - - - - - - - - - -- - - - 24,150 180,344 106,938 169,381 32,502 53,565 - - 45 3,126 - - - - - - - - - - - - - - - -- - - - - -45 3,126 - - - - - - - - - -- - - - - -- - - - - - - 166,255 32,502 - 24,150 180,344 - - - - - - - - - - - - - - - - - - - - - 53,565 - - 106,893 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- 24,150 180,344 106,893 166,255 32,502 53,565 24,150$ 180,344$ 106,938$ 169,381$ 32,502$ 53,565$ Continued on next page. Special Revenue Funds 120 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Housing Authority Drug Task Force Thoroughfare COVID Fund Grant Total Special Revenue Funds 58,865$ 420,001$ 1,694,199$ 2,594,393$ 853,941$ 34,013,356$ - - - - - 399,792 - - - - - 68,108 - - - - - 348,989 - - - - - -- -- -- - 58,865 420,001 1,694,199 2,594,393 853,941 34,830,245 - 13,348 - 128,584 - 1,631,317 - -- -- 1,072,881 - -- -- 68,108 - -- -- 230,288 - 13,348 - 128,584 - 3,002,594 - - - 2,457,603 - 2,457,603 - -- -- 399,792 - -- 2,457,603 - 2,857,395 - - - 8,206 - 507,955 - 406,653 - - 853,941 1,912,706 - - 1,694,199 - - 15,230,208 - - - - - 166,375 58,865 - - - - 1,720,481 - - - - - 6,990,069 - - - - - 1,032,827 - - - - - - - - - - - 698,400 - - - - - -- - - - - 711,235 - -- -- - 58,865 406,653 1,694,199 8,206 853,941 28,970,256 58,865$ 420,001$ 1,694,199$ 2,594,393$ 853,941$ 34,830,245$ Continued on next page. Special Revenue Funds 121 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Redevelopment Authority Capital Projects Fund Ambulance Parks Capital Cumulative Capital Improvement 497,678$ 2,372,620$ 553,321$ 172,203$ - - - - - - - - - - - - - - - - -87,414 - - 497,678 2,460,034 553,321 172,203 204,992 3,575 3,380 - - - - - - - - - - - -- 204,992 3,575 3,380 - - - - - - 72,845 - - - 72,845 - - - - - - - - - 292,686 - - - - - - - - - - - - 549,941 - - - - - - 2,383,614 - - - - - 172,203 - - - - - - - - - -- - 292,686 2,383,614 549,941 172,203 497,678$ 2,460,034$ 553,321$ 172,203$ Continued on next page. Capital Projects Funds 122 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction 2016 Property Tax Bond Construction 1 $ 9,651 $ 445,457 $ - 459$ 1,492$ - 157,646 -- - - - - - - - - - - - - - - - - - - - -- 9,651 603,103 - 459 1,492 - - - - - - - - - - - - - - - - - - - - - -- -- - - - - - - 157,646 - -- - 157,646 - -- - - - - - - - - - - 9,651 445,457 - - 1,492 - - - - - - - - 459 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- 9,651 445,457 - 459 1,492 9,651$ 603,103$ -$ 459$ 1,492$ Continued on next page. Capital Projects Funds 123 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) 2016 Property Tax Bond Construction 2 2016 Property Tax Bond Construction 3 2016 Property Tax Bond Construction 4 2016 Property Tax Bond Construction 5 2016 Property Tax Bond Construction 6 -$ 1,731,139$ 380,399$ -$ -$ - - - - - - - - - - - - - - - - - - - - - - -- - - 1,731,139 380,399 - - - - - - - - - - - - - - - - - - - -- - - -- -- - - - - - - -- -- - - -- - - - - - - - - - - - - 1,731,139 380,399 - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - 1,731,139 380,399 - - -$ 1,731,139$ 380,399$-$ -$ Continued on next page. Capital Projects Funds 124 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) 2016 Property Tax Bond Construction 9 2016 Property Tax Bond Construction 10 2016 Property Tax Bond Construction 11 2016 Property Tax Bond Construction 12 2016 Property Tax Bond Construction 13 -$ -$ -$ -$ 167,365$ - - - - - - - - - - - - - - - - - - - - - -- -- - - -- 167,365 - - - - - - - - - - - - - - - - - -- - - -- -- - - - - - - -- -- - - -- - - - - - - - - - - - - - - - 167,365 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- - - -- -167,365 -$ -$ -$ -$ 167,365$ Continued on next page. Capital Projects Funds 125 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) 2016 Project Fund 2017 Project Fund 2017 A Bond Construction Fund 2018 CMBC Bond Construction Fund Total Capital Projects Funds 544,322$ 7,597,093$ -$ 464,726$ 14,937,925$ - - - - 157,646 - - - - - - - - - - - - - - - - - -- 87,414 544,322 7,597,093 - 464,726 15,182,985 741,465 - - - 953,412 - - - - - - - - - - - -- - - 741,465 - -- 953,412 - - - - - - - -- 230,491 - -- -230,491 - - - - - - - - - - (197,143) 7,558,596 - - 10,389,642 - - - - - - 38,497 - 464,726 503,682 - - - - 549,941 - - - - - - - - - 2,383,614 - - - - 172,203 - - - - - - - -- - - (197,143) 7,597,093 - 464,726 13,999,082 544,322$ 7,597,093$ -$ 464,726$ 15,182,985$ Continued on next page. Capital Projects Funds 126 ASSETS: Cash and cash equivalents Property tax receivable Due from other governmental funds Due from related utility Intergovernmental receivablesAccounts receivable Total assets LIABILITIES: Accounts payable Claims payable Due to other fundsAccrued payroll Total liabilities DEFERRED INFLOW OF RESOURCES:Deferred revenue 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 governmentPublic safety Highways and streets Drainage and other capital assetsEconomic development Unassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES City of Carmel, Indiana BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds 3,853$ 361,158$ 156,504$ 521,515$ 49,472,796$ - 93,012 57,699 150,711 708,149 - -- - 68,108 - -- - 348,989 - -- - - -- -- 87,414 3,853 454,170 214,203 672,226 50,685,456 - - - - 2,584,729 - - - - 1,072,881 - - - - 68,108 - -- -230,288 - -- -3,956,006 - - - - 2,457,603 - 93,012 57,699 150,711 780,994 - 93,012 57,699 150,711 3,238,597 - - - - 507,955 - - - - 1,912,706 3,853 361,158 156,504 521,515 26,141,365 - - - - 166,375 - - - - 2,224,163 - - - - 7,540,010 - - - - 1,032,827 - - - - 2,383,614 - - - - 870,603 - - - - - 711,235 - -- -- 3,853 361,158 156,504 521,515 43,490,853 3,853$ 454,170$ 214,203$ 672,226$ 50,685,456$ Debt Service Funds 127 City of Carmel, Indiana STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - NONMAJOR GOVERNMENTAL FUNDS For the Fiscal Year Ended December 31, 2021 Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street REVENUES: Charges for services 1,351,368$ 3,268$ 2,931,179$ 4,571,518$ 161,006$ -$ Investment income 7,145 121 6,568 10,328 627 - Licenses and permits - - - - - - Other - - 41,430 - 410 652 Other taxes - - - - - - Contributions - - - 26,107 - - General property taxes - - - - - - Intergovernmental: Grants - - - - - - Shared revenue - -- -- 2,538,305 Total revenues 1,358,513 3,389 2,979,177 4,607,953 162,043 2,538,957 EXPENDITURES: Current: General government - - - - - - Public safety - - - - - - Streets and other infrastructure - - - - - - Economic development - - - - - - Culture and recreation 1,643 - 2,752,027 4,404,304 120,801 - Debt service: Principal - - - - - - Interest - - - - - - Lease rentals and issuance costs - - - - - - Capital outlay: General government - - - - - - Public safety - - - - - - Streets and other infrastructure - - - - - 1,673,596 Economic development - - - - - - Culture and recreation 221,582 - -- -- Total expenditures 223,225 - 2,752,027 4,404,304 120,801 1,673,596 Excess (deficiency) of revenues over (under) expenditures 1,135,288 3,389 227,150 203,649 41,242 865,361 Other financing sources (uses): Transfers in, governmental funds - - - - - - Transfer in (out) from (to) enterprise funds- - - - - Transfers (out), governmental funds - - - - - (1,544,451) Bond issuance - principal - - - - - - Bond issuance - premium - - - - - - Capital lease proceeds - -- -- - Total other financing sources - -- -- (1,544,451) NET CHANGE IN FUND BALANCES 1,135,288 3,389 227,150 203,649 41,242 (679,090) FUND BALANCES: beginning 1,096,447 29,780 1,438,490 2,521,706 144,445 2,375,432 FUND BALANCES: ending 2,231,735$ 33,169$ 1,665,640$ 2,725,355$ 185,687$ 1,696,342$ Continued on next page. Special Revenue 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 fundsTransfer 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, 2021 (Continued) Deferral User Fee Barrett Law Barrett Law Surplus Storm Water 4CDC Operating Fund 2,464$ 43,038$ -$ -$ 4,470,361$ 1,079,358$ 789 - - - 33,752 - - 29,730 - - - - - 5,625 - - - - - -- - - - - -- - - - - -- - - - - - - - - - - -- -- - 3,253 78,393 - -4,504,113 1,079,358 - - - - - 905,480 48,891 67,537 - - - - - - - - - - - - - 224,604 - - - - - - - - - - 440,000 (143,032) - - - - 130,820 196,636 - - - - - - - - - - - - - - - - - - - - - - 3,978,768 - - - - - - - -- -- -- 48,891 67,537 - -4,549,588 1,183,688 (45,638) 10,856 - - (45,475) (104,330) - - - - 438,815 1,211,265 - - - - - - - - - - (3,265,854) (143,032) - - - - - - - - - - - - - -- -- - - -- -(2,827,039) 1,068,233 (45,638) 10,856 - - (2,872,514) 963,903 229,955 103,870 6 166,369 10,631,841 1,043,903 184,317$ 114,726$ 6$ 166,369$ 7,759,327$ 2,007,806$ Continued on next page. Special Revenue 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 fundsTransfer 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, 2021 (Continued) CMCDC Operating Fund Motor Vehicle Highway Fund MIHP Health Self Insurance Workers Comp Support of the Arts 101,780$ -$ -$ -$ -$ -$ - - 36 - - - - - -- - - - 299,871 - - - - - 1,262,131 - - - - - - 819 - - - - 14,302,568 - - - - - - - - - - - 3,850,647 - -- - 101,780 19,715,217 855 - -- - - - 1,503,933 254,043 - - - 1,747 - - - - 16,737,970 - - - - 162,032 - - - - - - - - - - - - 2,500,000 - - - - - 90,051 - - - - - - - - - - - - - - - - - - - - - - - - - 3,736,770 - - - - - - - - - - - -- -- - 2,752,083 20,474,740 1,747 1,503,933 254,043 - (2,650,303) (759,523) (892) (1,503,933) (254,043) - 2,533,083 2,110,770 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 489,000 - -- - 2,533,083 2,599,770 - -- - (117,220) 1,840,247 (892) (1,503,933) (254,043) - 200,000 2,240,093 9,421 2,063,525 727,278 19,134 82,780$ 4,080,340$ 8,529$ 559,592$ 473,235$ 19,134$ Continued on next page. Special Revenue 130 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 fundsTransfer 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, 2021 (Continued) Keystone Non- Reverting Bicycle Facilities Non- Reverting Center Green Ice Non- Reverting Events & Festival Non- Reverting Code Enforcement Non-Reverting Sidewalk Non- Reverting -$ -$ -$ -$ -$ -$ 530 101 2,071 117 138 64 - - - - - - - 9,263 53,442 14,624 10,000 - - - - - - - - - - 5,789 - - - - - - - - - - - - - - - -- -- - 530 9,364 55,513 20,530 10,138 64 - - - - - - - - - - - - - - - - - 19,677 - - - - - - - - 245,636 24,900 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - - -245,636 24,900 - 19,677 530 9,364 (190,123) (4,370) 10,138 (19,613) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - - -- -- - 530 9,364 (190,123) (4,370) 10,138 (19,613) 137,845 22,255 620,454 31,036 30,884 50,000 138,375$ 31,619$ 430,331$ 26,666$ 41,022$ 30,387$ Continued on next page. Special Revenue 131 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 fundsTransfer 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, 2021 (Continued) Urban Forestry Clerk's Record Perpetuation Court Interpreter Public Defender Judicial Salary Fees Historic Preservation Fund -$ -$ -$ 2,216$ 25,944$ -$ - - - - - - - - - - - - 3,568 27,321 16 - - 76,953 - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - 3,568 27,321 16 2,216 25,944 76,953 - 17,327 - - - - - -- 6,000 40,979 - - - - - - - - - - - - 41,175 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - - 17,327 - 6,000 40,979 41,175 3,568 9,994 16 (3,784) (15,035) 35,778 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - - -- -- - 3,568 9,994 16 (3,784) (15,035) 35,778 71,191 290,998 64 11,823 113,793 173,788 74,759$ 300,992$ 80$ 8,039$ 98,758$ 209,566$ Continued on next page. Special Revenue 132 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 fundsTransfer 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, 2021 (Continued) Fire Gift Police Gift Parks Gift Community Relations Gift Redevelopment Commission Gift Economic Development -$ -$ -$ -$ -$ -$ 94 330 284 831 10 - - - - - - - - - - 2,786 - 30,000 - - - - - - 8,746 183,770 118,465 186,712 20,000 - - - - - - - - - - - - - -- -- -- 8,840 184,100 118,749 190,329 20,010 30,000 - - - - - - 11,430 63,798 - - - - - - - - - - - - - - - - - - 49,442 150,988 27,432 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- -- 11,430 63,798 49,442 150,988 27,432 - (2,590) 120,302 69,307 39,341 (7,422) 30,000 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- - - -- -- - (2,590) 120,302 69,307 39,341 (7,422) 30,000 26,740 60,042 37,586 126,914 39,924 23,565 24,150$ 180,344$ 106,893$ 166,255$ 32,502$ 53,565$ Continued on next page. Special Revenue 133 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 fundsTransfer 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, 2021 (Continued) Housing Authority Drug Task Force Thoroughfare COVID Fund Grant Total Special Revenue Funds -$ -$ 293,509$ -$ -$ 15,037,009$ - 1,792 5,822 8,206 - 79,756 - -- - - 29,730 - 42,989 - - - 618,950 - -- - - 1,262,131 - -- - 1,000 551,408 - -- - - 14,302,568 - 13,629 - 1,303,857 2,154,150 3,471,636 - -- -- 6,388,952 - 58,410 299,331 1,312,063 2,155,150 41,742,140 - - - 957,798 - 3,638,581 - 194,898 - - 200,523 635,803 - - - - - 16,757,647 - - - - - 427,811 - - - 111,787 - 7,888,960 - - - - - 2,796,968 - - - - - 417,507 - - - - - - - - - 234,272 - 234,272 - - - - - - - - - - - 9,389,134 - - - - - - - -- -- 221,582 - 194,898 - 1,303,857 200,523 42,408,265 - (136,488) 299,331 8,206 1,954,627 (666,125) - - - - - 6,293,933 - - - - - - - - - - (1,820,957) (6,774,294) - - - - - - - - - - - - - -- -- 489,000 - -- -(1,820,957) 8,639 - (136,488) 299,331 8,206 133,670 (657,486) 58,865 543,141 1,394,868 - 720,271 29,627,742 58,865$ 406,653$ 1,694,199$ 8,206$ 853,941$ 28,970,256$ Special Revenue 134 Continued on next page. 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 fundsTransfer 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 CH FUND BALANCES - NONMAJOR GOVERNMENTAL F For the Fiscal Year Ended December 31, 2021 (Continued) Redevelopment Authority Capital Projects Fund Ambulance Parks Capital Cumulative Capital Improvement -$ 1,868,257$ -$ -$ 142 7,736 2,320 - - - - - - - - - - - - 188,300 - - - - - - - - - - - - - -- - 142 1,875,993 2,320 188,300 - - - - - 1,312,376 - - - -- - - -- - - -- - - - - - - - - - - - - - - - - - - - - - - 518,925 - - 393,069 - - - - - -146,335 - 518,925 1,312,376 146,335 393,069 (518,783) 563,617 (144,015) (204,769) - - 222,500 - - - - - - - - - - - - - - - -- -- -- 222,500 - (518,783) 563,617 78,485 (204,769) 811,469 1,819,997 471,456 376,972 292,686$ 2,383,614$ 549,941$ 172,203$ Capital Projects Funds 135 Continued on next page. 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 fundsTransfer 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, 2021 (Continued) Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction 2016 Property Tax Bond Construction 1 -$ -$ -$ -$ -$ - - - - 1 - - - - - - - - - - - 353,935 - - - - - - - - - 4,011,776 - - - - - - - - - 1,621 - -- - 4,367,332 - -1 - - - - - - - - - - 269,107 172,563 - - 450 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3,568 - - - - - -- - - - 269,107 172,563 - -4,018 (269,107) 4,194,769 - - (4,017) - - - - - - - - - - - (4,183,993) (204,059) - - - -- - - - - - - - - -- -- - (4,183,993) (204,059) - - (269,107) 10,776 (204,059) - (4,017) 278,758 434,681 204,059 459 5,509 9,651$ 445,457$ -$ 459$ 1,492$ Continued on next page. Capital Projects Funds 136 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 fundsTransfer 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, 2021 (Continued) 2016 Property Tax Bond Construction 2 2016 Property Tax Bond Construction 3 2016 Property Tax Bond Construction 4 2016 Property Tax Bond Construction 5 2016 Property Tax Bond Construction 6 -$ -$ -$ -$ -$ 17 1,491 26 4 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- 17 1,491 26 41 - - - - - - - - - - 450 451 450 450 449 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 35,119 - - 1,523 - - - - - -- -- - 450 35,570 450 450 1,972 (433) (34,079) (424) (446) (1,971) - - 320,194 - - - - - - - (112,679) - - (25,606) (8,668) - - - - - - - - - - - -- -- (112,679) - 320,194 (25,606) (8,668) (113,112) (34,079) 319,770 (26,052) (10,639) 113,112 1,765,218 60,629 26,052 10,639 -$ 1,731,139$ 380,399$ -$-$ Continued on next page. Capital Projects Funds 137 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 fundsTransfer 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, 2021 (Continued) 2016 Property Tax Bond Construction 9 2016 Property Tax Bond Construction 10 2016 Property Tax Bond Construction 11 2016 Property Tax Bond Construction 12 2016 Property Tax Bond Construction 13 -$ -$ -$ -$ -$ 5 19 17 12 10 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -- -- 5 19 17 12 10 - - - - - - - - - - 450 450 449 449 450 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 45,325 53,118 - - - - - - - -- -- - 450 45,775 53,567 449 450 (445) (45,756) (53,550) (437) (440) - - - - 146,953 - - - - - (32,340) (110,045) (96,887) (80,922) - - - - - - - - - - - -- -- - (32,340) (110,045) (96,887) (80,922) 146,953 (32,785) (155,801) (150,437) (81,359) 146,513 32,785 155,801 150,437 81,359 20,852 -$-$-$-$ 167,365$ Continued on next page. Capital Projects Funds 138 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 fundsTransfer 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, 2021 (Continued) 2016 Project Fund 2017 Project Fund 2017 A Bond Construction Fund 2018 CMBC Bond Construction Fund Total Capital Projects Funds -$ -$ -$ -$ 1,868,257$ 528 14,545 - 29 26,903 - - - -- 396,687 - - - 396,687 - - - - 542,235 - - - - - - - - 4,011,776 - - - - - - - -- 1,621 397,215 14,545 - 29 6,847,479 - - - - - - - - - 1,312,376 4,620 4,573,948 - - 5,025,186 - 26,700 - - 26,700 - -- - - - - - - - - 225,000 225,000 - - - 511,439 511,439 - - - - - - - - - - - - - - - - 7,019,983 - - - 8,070,630 - - - 106,188 106,188 - -- -146,335 7,024,603 4,600,648 - 842,627 15,423,854 (6,627,388) (4,586,103) - (842,598) (8,576,375) 4,009,275 - - 879,000 5,577,922 - - - - - - (4,009,275) (1,488) - (8,865,962) - - - - - - - - - - - -- - 4,009,275 (4,009,275) (1,488) 879,000 (3,288,040) (2,618,113) (8,595,378) (1,488) 36,402 (11,864,415) 2,420,970 16,192,471 1,488 428,324 25,863,497 (197,143)$ 7,597,093$ -$ 464,726$ 13,999,082$ Continued on next page. Capital Projects Funds 139 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 fundsTransfer 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, 2021 (Continued) Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds -$ -$ -$ -$ 16,905,266$ - - - - 106,659 - - - - 29,730 - - - - 1,015,637 - 149,361 113,967 263,328 2,067,694 - - - - 551,408 - 1,777,200 1,359,023 3,136,223 21,450,567 - - - - 3,471,636 - 684 522 1,206 6,391,779 - 1,927,245 1,473,512 3,400,757 51,990,376 - - - - 3,638,581 - - - - 1,948,179 - - - - 21,782,833 - - - - 454,511 - - - - 7,888,960 - - - - 3,021,968 - - - - 928,946 - - - - - - - - - 234,272 - - - - - - - - - 17,459,764 - - - - 106,188 - -- -367,917 - -- -57,832,119 - 1,927,245 1,473,512 3,400,757 (5,841,743) - - - - 11,871,855 - - - - - - (2,824,500) (1,485,700) (4,310,200) (19,950,456) - - - - - - - - - - - -- -489,000 - (2,824,500) (1,485,700) (4,310,200) (7,589,601) - (897,255) (12,188) (909,443) (13,431,344) 3,853 1,258,413 168,692 1,430,958 56,922,197 3,853$ 361,158$ 156,504$ 521,515$ 43,490,853$ Debt Service Funds 140 City of Carmel, Indiana SUPPLEMENTARY INFORMATION BUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2021 Motor Vehicle Highway Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Property taxes 15,021,910$ 15,021,910$ 14,302,568$ (719,342)$ MVHF distribution 3,874,393 3,874,393 3,844,865 (29,528) Miscellaneous 3,168,729 2,725,010 3,668,858 943,848 Total Revenues 22,065,032$ 21,621,313$ 21,816,291$ 194,978$ EXPENDITURES: Engineering: Personal services 1,862,550 1,862,550 1,869,810 7,260 Supplies 12,400 12,400 12,561 161 Other services and charges 621,511 835,517 322,873 (512,644) Capital outlay 49,900 49,900 17,932 (31,968) Street Department: Personal services 6,158,971 6,158,971 5,942,951 (216,020) Supplies 2,865,531 2,865,531 1,662,600 (1,202,931) Other services and charges 9,256,079 10,256,079 6,472,556 (3,783,523) Capital outlay 1,748,757 1,748,757 1,278,788 (469,969) - -1,922,433 1,922,433 Total Motor Vehicle Highway Fund 22,575,699$ 23,789,705$ 19,502,504$ (4,287,201)$ Fire Pension Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis PositiveREVENUES:Original Final Amounts (Negative) Interest -$-$123$ 123$ Miscellaneous 6,000 6,000 - (6,000) State assumption of pension payments 626,722 626,722 598,315 (28,407) Total Revenues 632,722 632,722 598,438 (34,284) EXPENDITURES: Personal services 626,722 626,722 592,585 (34,137) Supplies 150 150 -(150)Other services and charges 8,000 8,000 -(8,000) Total Fire Pension Fund 634,872$ 634,872$ 592,585$ (42,287)$ Continued on next page. Construction, reconstruction, and preservation 141 City of Carmel, Indiana SUPPLEMENTARY INFORMATIONBUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2021 (Continued) Police Pension Fund Actual Variance with Budgetary Final Budget Budgeted Amounts Basis Positive Original Final Amounts (Negative) REVENUES: Interest -$-$446$ 446$ State assumption of pension payments 618,134 618,134 579,303 (38,831) Total Revenues 618,134 618,134 579,749 (38,385) EXPENDITURES: Personal services 618,134 618,134 586,617 (31,517) Supplies 300 300 -(300) Other services and charges 5,200 5,200 -(5,200) Total Police Pension Fund 623,634$ 623,634$ 586,617$ (37,017)$ 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$ 2,538,305$ 623,079$ Miscellaneous 604,538 604,538 652 (603,886) Total Revenues 2,519,764 2,519,764 2,538,957 19,193 EXPENDITURES: Other services and charges 3,685,660 3,685,660 1,416,889 (2,268,771) Capital outlay 2,206,710 2,206,710 - (2,206,710) Debt service 1,544,451 1,544,451 1,544,451 - Total Local Road & Street Fund 7,436,821$ 7,436,821$ 2,961,340$ (4,475,481)$ 142 Continued on next page. City of Carmel, Indiana SUPPLEMENTARY INFORMATIONBUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2021 (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$ 188,300$ (17,027)$ Total Revenues 205,327 205,327 188,300 (17,027) EXPENDITURES: Other services and charges 457,967 457,967 293,425 (164,542) Capital outlay 148,772 148,772 99,944 (48,828) Total Cumulative Capital Improvement Fund 606,739$ 606,739$ 393,369$ (213,370)$ 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$ 4,011,776$ (200,762)$ Commercial vehicle excise tax 1,880 1,545 1,621 76 Other 430,634 305,834 353,935 48,101 Total Revenues 4,645,052 4,519,917 4,367,332 (152,585) EXPENDITURES: Other services and charges 669,985 669,985 172,563 (497,422) Capital outlay ---- Debt service 4,183,993 4,183,993 4,183,993 - Total Cumulative Capital Development Fund 4,853,978$ 4,853,978$ 4,356,556$ (497,422)$ 143 Continued on next page. City of Carmel, Indiana SUPPLEMENTARY INFORMATIONBUDGETARY COMPARISON SCHEDULES NONMAJOR FUNDS For the Fiscal Year Ended December 31, 2021 (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$ 1,777,200$ (491)$ Commercial vehicle excise tax 1,244 669 684 15 Other 101,235 129,045 149,361 20,316 Total Revenues 1,880,170 1,907,405 1,927,245 19,840 EXPENDITURES: Debt service 2,824,500 2,824,500 2,824,500 - Total 2004 Road Bond P/I Fund 2,824,500$ 2,824,500$ 2,824,500$ -$ 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$ 1,359,023$ 2,586$ Commercial vehicle excise tax 598 510 522 12 Other 131,808 98,466 113,967 15,501 Total Revenues 1,488,843 1,455,413 1,473,512 18,099 EXPENDITURES: Debt service 1,485,700 1,485,700 1,485,700 - Total 2016 G.O. Property Tax Bond Fund 1,485,700$ 1,485,700$ 1,485,700$ -$ 144 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. 145 1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust FundsASSETS:Cash and cash equivalents 130,048$ 20,207$ 150,255$ Receivable from State of Indiana48,98349,37898,361 Total assets179,031 69,585248,616 LIABILITIES:Payroll withholdings48,98349,37898,361 Total liabilities48,98349,37898,361NET POSITION: restricted for pensions130,048$ 20,207$ 150,255$ City of Carmel, IndianaCOMBINING STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDSDecember 31, 2021146 City Court Custodial Fund ASSETS:Cash and cash equivalents 77,685$ Total assets77,685LIABILITIES:Court escrow - Total liabilities- NET POSITION77,685$ City of Carmel, IndianaCOMBINING STATEMENT OF FIDUCIARY NET POSITION - CUSTODIAL FUNDDecember 31, 2021147 1925 Police Pension Trust 1937 Fire Pension Trust Fund Total Trust FundsADDITIONS:Employer contributions 579,819$ 598,830$ 1,178,649$ Investment income 446 123 569 Miscellaneous revenue - - - Total additions580,265 598,953 1,179,218 DEDUCTIONS:Benefits587,133 593,100 1,180,233 Other services and charges- - - Total deductions587,133 593,100 1,180,233 NET INCREASE (DECREASE) IN NET POSITION(6,868) 5,853 (1,015) NET POSITION: beginning136,916 14,354 151,270 NET POSITION: ending130,048$ 20,207$ 150,255$ City of Carmel, IndianaCOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONPENSION FUNDSFor the Fiscal Year Ended December 31, 2021148 City Court Custodial Fund ADDITIONS:Court costs and fees 1,146,705$ Miscellaneous revenue - Total additions1,146,705 DEDUCTIONS:Distributions 1,171,998 Total deductions1,171,998 NET INCREASE (DECREASE) IN NET POSITION(25,293) NET POSITION: beginning102,978 NET POSITION: ending77,685$ City of Carmel, IndianaCOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONCUSTODIAL FUNDFor the Fiscal Year Ended December 31, 2021149 CONTENTS PAGES Financial Trends 151 - 156 Revenue Capacity 157 - 160 Debt Capacity 161 - 165 Demographic and Economic Information 166 - 167 Operating Information 168 - 169 Source: Unless otherwise noted, the information in these schedules is derived from the ACFR for the relevant year. Note: The City is presenting its seventh 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. 150 2021202020192018201720162015Governmental activities:Net investmentin capital assets 369,685,144$ 376,746,545$ 378,022,382$ 412,830,075$ 344,721,169$ 299,216,267$ 314,601,738$ Not spendable - - - - - - - Restricted 32,312,802 14,625,073 23,734,389 35,065,020 30,924,357 25,355,156 25,629,325 Unrestricted (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 position355,298,054$ 323,120,376$ 331,561,593$ 353,783,464$ 292,375,828$ 288,793,546$ 297,911,447$ Business-type activities:Net investmentin capital assets 149,036,091$ 138,083,697$ 101,192,811$ 114,861,067$ 118,497,972$ 116,495,474$ 113,210,726$ Not spendable - - - - - - - Restricted 2,254,154 2,069,280 - - - - - Unrestricted (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 position118,369,621$ 112,527,089$ 110,171,422$ 108,958,057$ 108,802,808$ 112,484,195$ 112,063,056$ Primary government:Net investmentin capital assets 518,721,235$ 514,830,242$ 479,215,193$ 527,691,142$ 463,219,141$ 415,711,741$ 427,812,464$ Not spendable - - - - - - - Restricted34,566,956 16,694,353 23,734,389 35,065,020 30,924,357 25,355,156 25,629,325 Unrestricted(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 position473,667,675$ 435,647,465$ 441,733,015$ 462,741,521$ 401,178,636$ 401,277,741$ 409,974,503$ Note: The City is presenting its seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.City of Carmel, IndianaNET POSITION BY COMPONENTLast Ten Fiscal Years151 2021202020192018201720162015Expenses:Governmental activities:General government 34,218,709$ 31,926,796$ 29,340,736$ 24,996,549$ 30,372,875$ 30,984,884$ 20,841,943$ Public safety56,351,024 53,605,541 54,710,167 53,919,299 41,085,416 40,267,560 42,151,467 Streets and other infrastructure48,809,731 43,870,342 46,372,722 48,637,707 25,476,391 12,340,719 29,584,125 Economic development32,871,669 34,750,667 39,956,058 15,817,738 16,711,747 54,995,901 10,771,611 Culture and recreation11,946,131 20,141,103 21,497,105 21,621,998 17,932,242 10,122,290 18,549,674 Unallocated interest expense5,059,713 5,593,677 2,623,251 2,267,516 18,217,810 5,545,855 4,542,707 Total governmental activities expenses 189,256,977 189,888,126 194,500,039 167,260,807 149,796,481 154,257,209 126,441,527 Business-type activities:Water21,799,363 20,130,070 20,063,976 19,277,075 20,824,320 19,439,437 13,542,037 Sewer9,859,506 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 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 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 131,588$ 306,364$ 146,498$ 221,467$ 211,995$ 82,803$ 72,056$ Public safety 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 4,763,870 4,016,186 4,181,410 2,869,523 98,090 248,036 480 Economic development 1,595,688 1,470,526 1,913,324 1,482,785 52,093 - - Culture and recreation 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 1,134,894 3,357,992 - - - - - Public safety 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 2,154,150 4,324,469 3,070,276 386,624 1,906,397 865,258 3,516,506 Economic development1,184,653 - - - - - - Culture and recreation- - - - - - 50,043 Total governmental activities revenues 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 YearsCHANGES IN NET POSITIONCity of Carmel, Indiana152 2021202020192018201720162015Business-type activities:Charges for services:Water 20,017,196$ 19,764,152$ 18,407,840$ 17,735,563$ 16,982,790$ 15,458,695$ 13,500,929$ Sewer11,035,932 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 5,775,390 3,419,195 3,458,396 3,279,973 4,995,765 4,620,949 - Sewer 1,912,958 761,819 387,133 629,483 336,363 552,460 - Total business-type activities revenues 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 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(164,881,041)$ (165,160,437)$ (169,185,359)$ (146,861,114)$ (132,886,044)$ (139,892,178)$ (114,244,003)$ Business-Type Activities7,082,607 3,867,292 1,867,342 2,199,266 (1,095,665) 2,378,161 4,267,800 (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 tax63,905,027 63,533,389 56,571,934 54,455,110 52,042,841 52,989,360 44,104,576 Income tax57,887,325 44,412,562 44,847,572 43,996,077 41,801,838 36,700,613 32,745,504 Food and beverage tax2,712,115 - - - - - - Tax incremental revenue44,334,410 36,446,525 36,555,314 33,658,972 30,326,364 28,850,762 26,154,361 Unrestricted investment earnings393,918 1,120,777 4,208,019 4,487,604 2,723,267 574,253 155,461 168,963 - - - - - - Other26,416,886 24,398,945 21,196,478 29,899,818 15,522,157 16,797,331 20,679,190 Total general revenues and transfers 195,818,644 169,912,198 163,379,317 166,497,581 142,416,467 135,912,319 123,839,092 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 38,020,210 8,619,053 (3,938,700) 21,835,733 8,434,758 (1,601,698) 14,481,889 NET POSITION: beginning435,647,465 441,733,015 462,741,521 400,056,203 401,190,880 409,974,503 395,492,614 Restatement- (14,704,603) (17,069,806) 40,849,585 (8,447,001) (7,095,064) - NET POSITION: beginning, adjusted 435,647,465 427,028,412 445,671,715 440,905,788 392,743,879 402,879,439 395,492,614 NET POSITION: ending473,667,675$ 435,647,465$ 441,733,015$ 462,741,521$ 401,178,637$ 401,277,741$ 409,974,503$ Note: The City is presenting its seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.Total primary government net (expense) revenueCity of Carmel, IndianaCHANGES IN NET POSITIONLast Ten Fiscal Years(Continued)CHANGE IN NET POSITION BEFORE SPECIAL ITEMSAmerican Rescue Plan - lost revenue replacement153 2021202020192018201720162015General Fund:Nonspendable -$ -$ -$ -$ -$ -$ -$ Restricted - - - - - - - Committed - - - - - - - Assigned 6,726,730 5,259,777 3,014,336 3,014,336 1,803,672 1,910,880 1,416,155 Unassigned 22,154,293 22,314,019 22,006,859 23,328,255 15,034,935 15,066,402 14,008,886 Total General Fund 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 207,974,077 90,467,731 128,443,455 178,817,196 256,581,733 257,811,177 43,069,142 Committed 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 212,972,356$ 96,540,899$ 133,730,120$ 184,824,762$ 262,025,711$ 261,023,402$ 43,934,924$ Total, Governmental Funds 241,853,379$ 124,114,695$ 158,751,315$ 211,167,353$ 278,864,318$ 278,000,684$ 59,359,965$ City of Carmel, IndianaFUND BALANCES ‐ GOVERNMENTAL FUNDSLast Ten Fiscal Years(modified accrual basis of accounting)Note: The City is presenting its seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.154 2021202020192018201720162015Revenues:Property tax 63,283,378$ 63,437,130$ 56,633,438$ 54,425,761$ 52,259,944$ 52,647,063$ 44,043,914$ Income tax50,521,352 47,894,782 45,139,812 44,606,607 37,187,574 46,625,784 28,847,934 Food and beverage tax2,712,115 Other local tax44,334,410 36,446,525 36,555,314 33,658,972 30,326,364 28,850,762 26,154,361 Charges for services18,709,945 15,806,603 20,998,709 18,679,782 14,907,146 12,901,368 8,570,357 Investment income236,719 897,178 3,958,675 4,356,867 2,339,501 442,961 74,597 Licenses and permits3,058,442 3,176,106 2,572,301 2,909,371 2,490,849 2,441,853 2,159,234 Fines and forfeits292,965 250,062 439,110 457,062 466,731 571,556 788,604 Intergovernmental: Grants4,650,285 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 revenue7,243,707 6,697,371 6,986,908 2,993,528 2,736,296 1,198,398 1,116,639 Other148,236 2,177,824 3,289,848 7,426,341 5,995,761 - - Contributions551,408 100,185 240,302 190,321 262,116 660,714 286,716 Other14,040,943 11,480,128 7,091,842 12,175,681 4,336,810 5,858,544 10,915,190 Total revenues209,783,905 196,111,921 187,073,020 186,238,916 155,019,150 160,215,529 130,890,778 Expenditures:Current:General government30,733,896 29,981,293 28,720,273 24,830,230 29,533,750 28,670,916 20,135,899 Public safety57,182,088 52,740,203 49,435,106 49,683,728 40,261,813 38,547,773 45,026,384 Streets and other infrastructure27,810,264 20,944,061 31,433,579 30,794,894 13,258,597 13,540,350 13,784,488 Economic development8,537,360 4,730,248 5,840,957 20,179,724 1,319,474 5,074,808 4,284,583 Culture and recreation14,037,667 14,474,713 18,102,363 14,359,423 12,938,526 13,397,374 13,432,578 Debt Service: Principal33,983,881 28,078,897 24,650,551 21,976,855 18,808,576 17,387,515 15,768,608 Interest25,656,085 30,190,082 28,998,519 28,361,382 26,688,864 17,763,071 17,223,247 Lease rentals and issuance costs 1,216,129 - 328,421 - - - - Capital outlay: General government4,224,592 1,629,419 1,301,526 503,513 707,523 2,931,360 119,885 Public safety3,596,303 4,189,888 1,016,079 2,440,252 1,327,731 1,925,392 3,710,693 Streets and other infrastructure 17,459,764 44,467,946 52,780,716 84,098,163 60,138,533 25,097,876 4,445,749 Economic development5,197,988 12,149,970 24,325,592 15,212,738 34,138,220 16,809,771 2,439,830 Culture and recreation1,863,371 2,890,800 2,261,904 5,061,517 747,324 734,053 422,388 Total expenditures231,499,388 246,467,520 269,195,586 297,502,419 239,868,931 181,880,259 140,794,332 Excess (deficit) of revenuesover (under) expenditures(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, IndianaCHANGES IN FUND BALANCES ‐ GOVERNMENTAL FUNDS(modified accrual basis of accounting)Last Ten Fiscal Years155 2021202020192018201720162015Other financing sources (uses):Bond issuance - principal 121,370,000 9,200,000 24,695,000 13,791,036 81,358,423 199,265,510 - Bond issuance - premium 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 2,823,029 4,648,419 3,530,369 2,555,639 2,638,693 2,294,226 3,167,006Payment to refunded bond escrow agent- (186,342,596) - - (26,501,547) (17,909,681) - Transfers in81,788,668 79,346,147 79,578,276 60,427,364 126,937,135 278,264,371 30,928,247Transfer in from associated utility 1,320,506 1,912,211 1,320,506 1,320,506 1,703,277 1,606,319 1,014,100Transfers out(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)139,454,167 16,883,034 29,545,875 17,910,721 85,713,415 238,514,734 4,181,106Total change in fund balances117,738,684$ (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 expenditures30.6% 30.1% 27.5% 29.5% 28.9% 23.4% 25.0%Note: The City is presenting its seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.(Continued)City of Carmel, IndianaCHANGES IN FUND BALANCES ‐ GOVERNMENTAL FUNDS(modified accrual basis of accounting)Last Ten Fiscal Years156 Taxes Net ValueNet ValueTotalTotalPayable Real Estate Railroad/ Utility/ BusinessNet Taxable EstimatedDirectYear 2Property Personal Property Assessed ValueActual Value 3Tax Rate20218,334,052,361 516,783,628 8,850,835,989 15,967,555,616 55.4% 0.787720208,005,622,698 509,094,794 8,514,717,492 15,258,648,418 55.8% 0.787720197,442,409,615 458,423,501 7,900,833,116 14,197,500,652 55.6% 0.788620186,666,896,042 467,365,607 7,134,261,649 12,997,560,747 54.9% 0.788720176,474,642,116 436,043,965 6,910,686,081 12,552,181,043 55.1% 0.789520166,220,543,748 420,168,770 6,640,712,518 12,043,692,490 55.1% 0.835620156,006,875,967 409,451,119 6,416,327,086 11,591,806,730 55.4% 0.700720144,829,947,454 398,186,327 5,228,133,781 9,538,010,360 54.8% 0.700720134,762,146,198 373,474,201 5,135,620,399 9,445,479,646 54.4% 0.700720124,863,829,903 398,308,947 5,262,138,850 9,604,804,116 54.8% 0.678820114,891,357,512 426,518,904 5,317,876,416 9,561,032,777 55.6% 0.666420105,088,667,610 388,639,324 5,477,306,934 9,654,531,997 56.7% 0.6664Sources:Hamilton County Auditor's officeIndiana Gateway for Government UnitsNotes: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, IndianaASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLast Ten Fiscal YearsAssessed Value as a Percentage of Estimated Actual Value157 2021202020192018201720162015201420132012City Direct Rates:Corporation General 0.5222 0.5631 0.5572 0.5769 0.5741 0.5745 0.5088 0.5381 0.5459 0.5284Motor Vehicle Highway 0.1783 0.1268 0.1188 0.1051 0.1027 0.1701 0.1643 0.1249 0.1268 0.1080Debt Service 0.0161 0.0183 0.0184 0.0193 0.0195 0.0000 0.0000 0.0000 0.0000 0.0000Redevelopment Bond 0.0211 0.0295 0.0445 0.0374 0.0440 0.0424 0.0000 0.0101 0.0000 0.0160Cumulative Capital Development 0.0500 0.0500 0.0497 0.0500 0.0492 0.0486 0.0276 0.0276 0.0280 0.0264Total Direct Rate 0.7877 0.7877 0.7886 0.7887 0.7895 0.8356 0.7007 0.7007 0.7007 0.6788Overlapping Rates:State 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000County 0.2744 0.2754 0.2791 0.2814 0.2814 0.2814 0.2926 0.3054 0.3074 0.2901Solid Waste 0.0030 0.0030 0.0031 0.0032 0.0032 0.0032 0.0033 0.0033 0.0033 0.0032Township - Clay 0.0741 0.0565 0.0640 0.0675 0.0694 0.0673 0.0746 0.0719 0.0781 0.0693Library 0.0752 0.0751 0.0755 0.0760 0.0760 0.0778 0.0787 0.0787 0.0765 0.0682Carmel Clay School Corp 0.8583 0.8572 0.8251 0.8118 0.8291 0.8053 0.8106 0.8453 0.8591 0.7911Total Direct and Overlapping Rate 2.0727 2.0549 2.0354 2.0286 2.0486 2.0706 1.9605 2.0053 2.0251 1.9007Source: 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, IndianaPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTS(Rate per $100 of assessed value)Last Ten Fiscal Years158 Percentage of Total City Taxpayer Assessed Value Assessed Value Clarion Health North LLC 95,476,500 1.15% Clay Terrace Partners LLC 76,177,400 0.91% Karmel Property LLC 48,481,700 0.58% Clay Terrace Partners LLC 44,158,800 0.53% Carmel Lofts LLC 38,357,800 0.46% Hamilton Crossing Indianapolis Realty LP 36,988,300 0.44% VSM Partners LLC 36,618,500 0.44% Edward Rose Development Carmel LLC 36,084,700 0.43% Carmel Center Apartments LLC 34,815,500 0.42% Hunt Sunrise LLC 33,560,600 0.40% 480,719,800 5.76% Percentage of Total City Taxpayer Assessed Value Assessed Value Clarion Health North LLC 105,908,500 2.18% Clay Terrace Partners LLC 72,842,000 1.50% Washington National 45,493,000 0.94% Hamilton Crossing Indianapolis Realty LP 43,919,760 0.90% Clay Terrace Partners LLC 41,650,000 0.86% Carmel Lofts LLC 40,790,200 0.84% Hamilton Crossing Indianapolis Realty LP 30,023,400 0.62% Zeller Carmel Property LLC 29,409,700 0.60% Penn On Parkway LLC 29,007,800 0.60% VSM Partners LLC 28,497,800 0.59% 467,542,160 9.63% Source: Hamilton County Auditor's office. 2021 2012 City of Carmel, Indiana Current Year and Nine Years Ago PRINCIPAL PROPERTY TAXPAYERS 159 Taxes Total CertifiedCashPercentagePayable Year Tax LevyCredits 1Collections 2Total of Levy202166,364,322 2,967,513 63,283,378 66,250,891 99.83%202063,779,530 2,425,294 61,908,918 64,334,212 100.87%201959,383,729 2,402,495 55,252,616 57,655,111 97.09%201856,917,333 2,048,991 53,042,657 55,091,648 96.79%201752,180,837 2,642,506 50,907,298 53,549,804 102.62%201655,990,426 2,917,489 52,647,063 55,564,552 99.24%201545,416,367 1,132,485 44,043,913 45,176,398 99.47%201444,020,059 1,105,727 40,554,757 41,660,484 94.64%201343,391,737 1,119,259 38,072,795 39,192,054 90.32%201243,399,780 270,162 37,319,721 37,589,883 86.61%201135,993,200 614,682 34,393,205 35,007,887 97.26%Sources:Indiana Gateway for Government UnitsIndiana Department of Local Government FinanceNote: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 2021, total delinquent property tax due to the City for 2021 and all prior years was approximately $6,535,101.City of Carmel, IndianaPROPERTY TAX LEVIES AND COLLECTIONSLast Ten Fiscal YearsTotal Collections160 2021202020192018201720162015Certified net assessed valuation 8,425,075,775$ $8,096,931,541 7,530,272,592$ 7,216,601,040$ 6,994,981,173$ 6,700,625,433$ 6,481,570,742$ 2% constitutional debt limit2.0%2.0%2.0%2.0%2.0%2.0%2.0%Subtotal168,501,516 161,938,631 150,605,452 144,332,021 139,899,623 134,012,509 129,631,415 divided by three 13.0 3.0 3.0 3.0 3.0 3.0 3.0 Debt limit56,167,172 53,979,544 50,201,817 48,110,674 46,633,208 44,670,836 43,210,472 Net debt applicable to debt limit (25,189,286) (25,874,016) (24,822,199) (26,977,490) (29,641,000) (33,580,000) (15,417,000) Legal debt margin30,977,886$ 28,105,528$ 25,379,618$ 21,133,184$ 16,992,208$ 11,090,836$ 27,793,472$ 55.15% 52.07% 50.56% 43.93% 36.44% 24.83% 64.32%Source: Indiana Department of Local Government FinanceNotes: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 seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.Legal debt margin as percentage of debt limitCity of Carmel, IndianaLEGAL DEBT MARGIN INFORMATIONLast Ten Fiscal Years161 2021 820,834,516 10,266,286 831,100,802 169,545,505 1,228,526 170,774,031 1,001,874,833 12.14% 9,9422020 725,062,256 10,206,016 735,268,272 164,363,644 1,089,246 165,452,890 900,721,162 11.23% 9,0292019 739,095,398 8,433,199 747,528,597 151,165,878 1,092,136 152,258,014 899,786,611 11.36% 8,9032018 743,736,654 7,637,383 751,374,037 135,831,887 519,822 136,351,709 887,725,746 12.01% 9,1612017 721,260,757 7,315,666 728,576,423 172,348,990 721,688 173,070,678 901,647,101 13.75% 9,9012016 660,449,791 6,836,403 667,286,194 175,750,411 562,700 176,313,111 843,599,305 13.67% 9,4762015 755,670,563 7,315,666 762,986,229 139,951,647 721,688 140,673,335 903,659,564 15.19% 10,1861 Population and personal income data can be found on the Schedule of Demographics and Economic Statistics.City of Carmel, IndianaRATIOS OF OUTSTANDING DEBT BY TYPELast Ten Fiscal YearsGovernmental Activities Bonds and Contract Purchases Total Governmental Activities Leases Note: The City is presenting its seventh 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 Leases Percentage of Personal Incomeˡ162 2021 990,380,02125,913,557964,466,4646.04%9,5702020 889,425,90030,013,581859,412,3195.63%8,6152019 890,261,27630,090,234860,171,0426.06%8,5112018 879,568,54127,141,500852,427,0416.56%8,7972017 893,609,74720,790,202872,819,5456.95%9,5852016 836,200,20221,862,629814,337,5736.76%9,1472015 895,622,21017,977,793877,644,4177.57%9,893Note: 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 Amount restricted for debt service principal payments.3 Property tax value can be found on the Schedule of Assessed Value and Actual Value of Taxable Property.4 Population data can be found on the Schedule of Demographics and Economic Statistics.Bonds and Contract Purchases 1Less: Amounts Available in Debt Service Fund 2TotalCity of Carmel, IndianaRATIOS OF GENERAL BONDED DEBT OUTSTANDINGLast Ten Fiscal YearsNote: The City is presenting its seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.Per Capita 4Percentage of Estimated Actual Value of Taxable Property 3163 Percent Amount Outstanding Applicable to Applicable to Governmental Unit Debt (1) Carmel (2)Carmel Direct Debt: City of Carmel (see page 162)831,100,802$ 100.00% 831,100,802$ Overlapping Debt Paid with Property Taxes: Carmel Clay School Corporation 251,494,954 100.00% 251,494,954 Carmel Clay Public Library 32,510,625 100.00% 32,510,625 Clay Township 129,322,724 100.00% 129,322,724 Hamilton County 101,565,201 33.81% 34,339,194 Hamilton County Tax Increment Bonds 47,350,758 0.00%- Sub-Total Overlapping Debt 562,244,262$ 447,667,497 Total Direct and Overlapping Debt 1,278,768,299$ Population - 2021 (3)100,777 Estimated direct and overlapping debt per capita 12,689$ 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 dl City of Carmel, Indiana DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT at December 31, 2021 (1) Source: Gateway for Governmental Units. 164 Net RevenueOperating Operating Available forRevenueExpenses 1Debt ServicePrincipalInterestCoverage 2Water Utility2021 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 Utility2021 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.1 Operating expenses do not include depreciation and amortization.2 Coverage = Net Available Revenue/Debt Service Requirements.Debt Service RequirementsCity of Carmel, IndianaPLEDGED‐REVENUE COVERAGEat December 31, 2021Note: The City is presenting its seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.165 Public Year-endFiscal Median Per Capita Personal High School School UnemploymentYearPopulation 1Age 1, 2Income 3IncomeGraduation 4Enrollment 4Rate 52021100,777 37.8 81,885 8,252,167,281 97.0% 16,215 0.7%202099,757 39.4 80,426 8,023,056,482 95.2% 16,664 3.2%2019101,068 39.5 78,343 7,917,970,324 97.6% 16,352 2.0%201896,900 39.2 76,293 7,392,791,700 97.9% 16,147 2.4%201791,065 39.2 72,005 6,557,135,325 97.5% 16,082 2.2%201689,029 39.9 69,337 6,173,003,773 96.5% 15,954 2.6%201588,713 38.5 67,040 5,947,319,520 95.8% 15,971 3.0%201486,682 38.4 64,271 5,571,138,822 96.9% 15,912 3.6%201385,929 38.7 60,857 5,229,381,153 96.3% 15,724 3.8%201283,595 38.4 60,158 5,028,908,010 94.3% 15,750 5.1%Sources:1 U.S. Census BureauU.S. Census Bureau, American Community Survey 1-Year Estimates2020 - U.S. Census Bureau, 2020 Census2 U.S. Census Bureau, 5-Year American Community Survey Median Age and City of Carmel Per Capita Income3 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 Schools5 Bureau of Labor StatisticsCity of Carmel, IndianaDEMOGRAPHIC AND ECONOMIC STATISTICSLast Ten Fiscal Years166 Percentage of Total City Company Industry Employees Rank Employment Carmel Clay Schools Public education 2,717 1 5.03% CNO Financial Group Life insurance holding company 1,600 2 2.96% GEICO Auto insurance company 1,500 3 2.78% Liberty Mutual Insurance company 1,450 4 2.68% Resort Condominium Int’l. (RCI) Vacation exchange network and services 1,125 5 2.08% Allegion Safety and security systems 1,100 6 2.04% The Capital Group Financial Services 975 7 1.80% KAR Global Automotive remarketing services 892 8 1.65% Whisper Hearing Center Home health services 800 9 1.48% Midcontinent ISO Electrical transmission operator 700 10 1.30% Percentage of Total City Company Employees Rank Employment Carmel Clay Schools 2,469 1 6.07% Conseco Inc (now CNO Financial Group) 2,036 2 5.00% Marsh Supermarkets 1,235 3 3.04% Clarian North Medical Center (now IU Health North) 1,150 4 2.83% Liberty Mutual/Indiana Insurance 750 5 1.84% City of Carmel 700 6 1.72% St. Vincent Carmel Hospital 664 7 1.63% Independent Transmission System Operator (now Midcontinent ISO) 600 8 1.47% TCL - Thomson Electronics 550 9 1.35% St. Vincent Heart Center 500 10 1.23% Sources: Hamilton County Economic Development Corporation City and Company Officials Carmel Clay School Corporation 2021 2012 City of Carmel, Indiana PRINCIPAL EMPLOYERS Current Year and Nine Years Ago 167 2021 2020 2019 2018 2017 2016 2015 General Government: Controller 6700000 City Clerk 5599986 Mayor 3333333 City Council 9 9 7 7777 Board of Public Works 2232222 Plan Commission 9 9 9 9 9 11 11 Administration 4443324 City Court 4466777 Law Department 5677668 Community Services 24 24 23 23 21 22 22 Community Relations 9977654 Public Safety: Police Officers 136 129 118 114 114 109 117 Civilians 26 24 25 24 23 23 26 Fire Firefighters and Officers 164 160 154 146 147 153 166 Civilians 10 10 10 9889 Culture and Recreation: Parks Department 53 53 69 63 65 64 62 Brookshire Golf 5544444 Utilities (Water and Sewer)106 105 105 104 104 103 109 Other Programs: Human Resources 5443333 Street 50 52 52 50 48 48 52 Engineering 15151515151516 Communications 14 14 14 14 16 15 13 Redevelopment 5544231 TOTAL 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 seventh ACFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations. 168 2021 2020 2019 2018 2017 2016 2015 General Government: Community Services Permits issued 2,098 1,610 1,628 1,703 1,557 1,351 1,237 Residential construction permits 562 332 358 478 463 429 359 Total number of dwelling units 943 592 469 767 759 432 1,663 Building inspections performed 436 531 512 487 472 431 476 Public Safety: Police Incidents 91,039 89,250 91,436 83,740 85,500 83,955 83,904 Occurred incidents 3,968 3,642 4,548 4,361 4,010 4,270 4,330 Accidents 2,010 1,602 2,645 2,575 2,504 2,488 2,442 Total agency arrests 2,450 2,500 2,469 2,569 2,459 2,530 2,642 Fire Emergency medical responses 7,155 6,769 6,279 5,517 5,136 4,755 4,402 Fire-related calls for service 4,567 4,252 3,848 3,220 2,906 2,592 2,312 Number of fire stations 7 6 6 6 6 6 6 Culture and recreation: Number of parks and greenways 19 19 17 17 17 16 15 Total acres 577 550 540 530 505 505 505 Total trail miles 26.5 26.5 26.5 26.5 16 16 16 Streets: Number of "center lane" miles streets 527 524 515 486 485 483 482 Number of roundabouts 146 138 131 122 115 111 97 Sewer: Miles of sanitary mains 265 252 265 254 243 243 243 Miles of sanitary sewer main cleaned/inspected 135.70 27.00 25.40 16.00 14.85 14.20 13.65 9.95 10.24 10.82 10.78 10.16 10.05 9.92 Water: Miles of watermains 573 555 550 565 538 538 538 Peak-day water demand (in millions of gallons) 23.2 22.5 24.0 21.5 22.0 21.0 19.0 Number of fire hydrants inspected/serviced 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 seventh 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 169