Comprehensive Annual Financial Report 2018CITY OF CARMEL INDIANA
Comprehensive Annual
Financial Report
Fiscal Year Ended December 31, 2018
Prepared by:
Board of Public Works and Safety
CITY OF CARMEL, INDIANA
COMPREHENSIVE ANNUAL FINANCIAL REPORT
For the Fiscal Year Ended December 31, 2018
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INTRODUCTORY SECTION Pages
Letter of Transmittal 8–15
GFOA Certificate of Achievement 16
Organizational Chart 17
List of Elected and Appointed Officials 18–19
FINANCIAL SECTION
Independent Auditor's Report 21–22
Management Discussion and Analysis 24–33
Basic Financial Statements:
Government‐wide Financial Statements:
Statement of Net Position 34
Statement of Activities 35
Fund Financial Statements:
Governmental Funds:
Balance Sheet ‐ Governmental Funds 36
Reconciliation of the Balance Sheet ‐ Governmental Funds to the
Government‐wide Statement of Net Position 37
Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Governmental Funds 38–39
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances ‐ Governmental Funds to the Government‐wide
Statement of Activities 40
Proprietary Funds:
Statement of Net Position ‐ Proprietary Funds 41–42
Statement of Revenues, Expenses, and Changes in Net
Position ‐ Proprietary Funds 43
Statement of Cash Flows ‐ Proprietary Funds 44–45
Fiduciary Funds:
Statement of Fiduciary Net Position - Fiduciary Funds 46
Statement of Changes in Fiduciary Net Position - Fiduciary Funds 47
Notes to the Basic Financial Statements 48–87
Required Supplementary Information:
Schedule of Changes in Net OPEB Liability and Related Ratios 88
Schedule of Changes in Fiduciary Net Position 89
1925 Police Officers' And 1937 Firefighters' Pension Plans:
Schedule of Employer Contributions 90
Schedule of Net Pension Liability And Related Ratios 91
Schedule of Changes In Net Pension Liability 92
Notes to Schedules 93
Defined Benefit Pension Plans - Multiple Employer Plans:
Schedule of the City's Proportionate Share of the Net Pension Liability 94–95
Schedule of City Contributions 96
Notes to Schedules 97
City of Carmel, Indiana
Comprehensive Annual Financial Report
For the Fiscal Year Ended December 31, 2018
TABLE OF CONTENTS
Pages
Budgetary Comparison Schedules - General Fund 98–101
Notes to the Required Supplementary Information -
Budgetary Comparison Schedules 102
Supplementary Information:
Nonmajor Governmental Funds - Information 103–106
Combining Balance Sheet - Nonmajor Governmental Funds:
Special Revenue Funds 107–110
Capital Projects Funds 110–112
Debt Service Funds 112
Combining Statement of Revenues, Expenditures, and Changes in Fund
Balances ‐ Nonmajor Governmental Funds:
Special Revenue Funds 113–116
Capital Projects Funds 116–118
Debt Service Funds 118
Budgetary Comparison Schedules ‐ Nonmajor Governmental Funds 119–129
Combining Statements of Fiduciary Net Position - Pension Funds 131
Combining Statements of Fiduciary Net Position - Agency Funds 132
Combining Statement of Changes In Fiduciary Net Position - Pension Funds 133
Combining Statement Of Changes In Assets And Liabilities - Agency Funds 134
STATISTICAL SECTION
Financial Trends:
Net Position by Component 136
Changes in Net Position 137–138
Fund Balances ‐ Governmental Funds 139
Changes in Fund Balances ‐ Governmental Funds 140–141
Revenue Capacity:
Assessed Value and Estimated Actual Value of Taxable Property 142
Property Tax Rates - Direct and Overlapping Governments 143
Principal Property Taxpayers 144
Property Tax Levies and Collections 145
Debt Capacity:
Legal Debt Margin Information 146
Ratios of Outstanding Debt by Type 147
Ratios of General Bonded Debt Outstanding 148
Direct and Overlapping Governmental Activities Debt 149
Pledged‐Revenue Coverage 150
Demographic and Economic Information:
Demographic and Economic Statistics 151
Principal Employers 152
Operating Information:
City Government Employees by Function/ Program 153
Operating Indicators and Capital Asset Statistics by Function/ Program 154
TABLE OF CONTENTS (CONTINUED)
For the Fiscal Year Ended December 31, 2018
City of Carmel, Indiana
Comprehensive Annual Financial Report
Lang Lang
INTRODUCTORY SECTION
Introductory Section:
Letter of Transmittal
Certificate of Achievement – Government Finance
Officers Association
City of Carmel Organization Chart
List of Principal Officials
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CHRISTINE PAULEY, CLERK-TREASURER
June 28, 2019
To the Honorable Members of the Carmel City Council, and
Citizens of the City of Carmel, Indiana:
We are pleased to submit the Comprehensive Annual Financial Report (CAFR) for the City of Carmel (the City) year ended December 31, 2018. Responsibility for both the accuracy
of the presented data and the completeness and fairness of the presentation, including all
disclosures, rests with City management. To the best of our knowledge, the enclosed data is accurate in all material respects and is presented in a manner designed to fairly set forth the financial position and the results of operations of the various funds of the City of Carmel. All disclosures necessary to enable the reader to gain an understanding of the City’s
financial activity have been included.
This report presents management’s representations concerning the finances of the City. Consequently, management assumes full responsibility for the completeness and reliability of all the information presented in this report. To provide a reasonable basis for making these
representations, management has established a comprehensive internal control framework
designed to protect the City’s assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the costs of internal controls should not outweigh the benefits, the City’s comprehensive framework of internal
controls has been designed to provide reasonable rather than absolute assurance that the
financial statements will be free from material misstatement.
Indiana law requires an annual audit of the financial records and transactions of all City functions. The Indiana State Board of Accounts performed the City’s audit for 2018. Their
audit was conducted in accordance with generally accepted governmental auditing
standards. The State Board of Accounts concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion the that City of Carmel’s financial statements for the year ended December 31, 2018, are fairly presented in conformity with GAAP. The independent auditor’s report is presented as the first component of the
financial section, on page 21 of this report.
ONE CIVIC SQUARE, CARMEL, IN 46032 www.carmel.in.gov
CITY OF CARMEL
JAMES BRAINARD, MAYOR
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GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statement in the form of management’s discussion and analysis (MD&A). The MD&A complements this letter of transmittal and should be read in
conjunction with it. The City’s MD&A can be found immediately following the independent auditors’ report in the financial section of the CAFR.
CITY PROFILE
The City of Carmel was incorporated in 1976, and it is located in Hamilton County, directly north of Indianapolis. The City occupies nearly 49 square miles, with more than 486 miles of public roadways. The City has experienced tremendous growth within the past few decades and serves mainly as a residential and commercial area for both Carmel and
Indianapolis professionals.
Carmel has an estimated population of 96,900 (according to recent census estimates). Personal income statistics are above national and State of Indiana averages. The median
household income level is $107,916, and the median value of a home is $345,900.
Hamilton County ranks first in the State of Indiana for median household income and second in the State for per capita personal income. The unemployment rate in Hamilton County has been substantially lower than that of the State of Indiana during the past 10 years.
The City is recognized for its sound corporate environment, high-quality residential neighborhoods, outstanding schools, cultural amenities, well-developed infrastructure, and strong economy. The City was ranked as the No. 1 place to live in America by Money Magazine for cities with a population of 50,000 to 300,000 in 2012, and is consistently
ranked among the best places to raise a family and among the safest cities by a variety of
rating websites and agencies. The proximity of Carmel to Indianapolis provides increased employment and higher education opportunities for local residents.
City Structure
The City operates under a Mayor, Clerk-Treasurer, Judge of the City Court, and a seven-
member Common Council pursuant to Indiana law. The Mayor serves as the chief executive of the City and serves a four-year term. The Clerk-Treasurer, also elected to a four-year term, serves as the fiscal officer and is responsible for the financial and other records of the City. The legislative and fiscal body for the City is the Common Council. The seven-
member Council is comprised of two at-large and five district representatives who are
elected to serve four-year terms. The Council meets formally twice a month to conduct City business. Its duties include the enactment of all ordinances and resolutions and approval of the annual budget.
The administrative body for the City is the Board of Public Works and Safety. This
three-member board consists of the Mayor, who serves as the presiding officer, and two mayoral appointees. This Board is responsible for bidding infrastructure projects as well as other duties prescribed by Indiana state law.
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The City provides services in the following areas: public safety (police, fire, EMS, and emergency communications), community services (planning, code enforcement, and economic development), parks and recreation, transportation (streets and sidewalks),
engineering, storm water drainage, court, and general administrative services. In addition, the City provides wastewater utility services and drinking water.
The City of Carmel includes several departments and services, including the Community Services, Community Relations and Economic Development, Redevelopment,
Engineering, Human Resources, Street Department, Law, Administration, Information Systems, Police, Fire, Carmel Clay Communications Center and the Carmel Water and Sewer Utilities.
The City employs a total of 626 employees, with union representation as follows:
Carmel Professional Firefighters / IAFF #4444 Firefighters 146
Fraternal Order of Police Lodge #185
Police 114
Planning and Zoning
The Carmel Plan Commission promotes orderly growth throughout the City and other areas of Clay Township. The eleven-member Plan Commission is appointed by the following: Mayor (5), City Council (1), Park Board (1), City Engineer (1), Board of Public Works (1) and County Commissioners (2). The Board of Zoning Appeals has five members appointed by the Mayor, City Council, and Plan Commission.
Component Units Certain financing and economic development functions are provided by a legally separate redevelopment authority, two 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 City’s financial statements.
Additional information on these entities can be found in Note I.B. of the notes to the financial statements.
CITY ECONOMIC CONDITION
The City has experienced extensive residential and commercial development in recent years
and has been one of the fastest growing communities in the Indianapolis Metropolitan Area.
More than 125 companies have their international, national, or regional headquarters located in the City. The city’s growing Midtown redevelopment saw three major building projects break ground and a handful of businesses open their doors, adding to mix of daytime office workers and day/night dining and entertainment options.
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Along U.S. Highway 31, known as the Meridian Corporate Corridor, numerous modern multi- story office complexes have been built in recent years. The corporate headquarters and offices of major corporations such as Delta Faucet, American Specialty Health, Blue
Horseshoe Solutions, CNO Financial Group, Inc., Monster.com, and Liberty Mutual Insurance are among the many office complexes that form the Meridian Corridor. In 2018, KAR Auction began construction of a new $80 million Corporate Headquarters. In addition to these corporate headquarters, the Corridor's strength as a provider of medical services is attested to by numerous healthcare facilities, including St. Vincent Carmel Hospital and its
newly built Women’s Center, St. Vincent Heart Center, I.U. Health North Hospital (formerly Clarian North Medical Center), and Franciscan St. Francis Health.
One of the City’s largest employers is CNO Financial Group, Inc., a life insurance holding company that was founded in 1979 and acquired numerous insurance companies
in the 1980s and 1990s. According to company officials, the number of employees in Carmel currently numbers approximately 1,709.
Liberty Mutual Insurance, which began operations in 1912, employs 1,430 according to company officials. The employment trend has been steady in the past year and is expected
to remain steady in the upcoming year.
Midcontinent Independent System Operator, Inc. (MISO) located its corporate headquarters in Carmel in 2002, constructed a second building in 2012, and has announced another
expansion of offices and jobs in a new facility it will build adjacent to its existing structure.
The company employs approximately 802 as of the end of 2018.
Several other established major employers in the City include GEICO, with more than 1,114 employees; Resort Condominium Int’l. (RCI), a resort hotel exchange network, with
1,100 employees; The Capital Group, a financial services management company, with
approximately 1,000 employees; Next Gear Capital with 1,057 employees; KAR Auction with 1,600 employees in Indiana (most of them in Carmel); American Specialty Health with 265 employees and plans for future growth; Duke Realty with 475 employees; Allegion, the headquarters for a security technology company, with 400 employees; and
Delta Faucet, with 425 employees in Carmel.
QUALITY OF LIFE
During the past 10 years, park land in Carmel has increased from 20 to more than 1,000
acres through purchases and gifts. Central Park, which opened in 2007, provides many recreational opportunities for residents of the City. The park includes a 146,000-square-foot community recreation center, which houses a three-court gymnasium, an indoor walking/jogging track, a workout center, meeting rooms, a banquet facility, park offices,
and outdoor and indoor aquatic center.
Another unique Carmel recreational feature is the Monon Greenway, a five-mile paved trail built on a former rail corridor, which extends through the center of Carmel and connects to the 10.5-mile Monon Trail system in Marion County to the south, extending all the way to
downtown Indianapolis, and to Westfield to the north, connecting to the Grand Park
sports complex. The trail system is very popular with joggers, walkers, bicyclists, and rollerbladers. Trail expansions have brought our total miles of paths and trails to more than 195.
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Cultural activities are provided by the $175-million Center for the Performing Arts in City Center, which includes the Palladium – a state-of-the-art, 1,600-seat concert hall; the Tarkington, a 500-seat proscenium arch theater, and the 200-seat Studio Theater. The Center
is home to many local arts organizations including The Booth Tarkington Civic Theatre and the Carmel Symphony Orchestra.
Center Green is a public place providing an area for the community and visitors to gather for events and festivals between the Palladium and Tarkington theater building. The Carmel
Farmers Market attracts tens of thousands to its Saturday morning markets. In 2017, the City unveiled the Carmel Christkindlmarkt and the Ice at Center Green, creating a winter wonderland with shops, dining options, skating and entertainment in the fresh crisp air, attracting more than 320,000 people during its second holiday season. The Christkindlmarkt was open from mid-November until Christmas Eve each week from Wednesdays through
Sundays. The Ice at Center Green remained open until March 10.
The Carmel Arts and Design District, located in the heart of Old Town Carmel, is comprised of galleries, eateries, boutiques, gift and interior design shops, antique stores, and other retail establishments geared toward the arts. It is also home to the Indiana Design Center, a
premier destination for design in the Midwest.
The Carmel Clay Public Library serves residents of the City. The library provides students, teachers, and residents of the City access to books, other resource materials, and programs
located in the library as well as a new mobile library service. The library is consistently
ranked in the top ten libraries in the country by Hennen's American Public Library Ratings ("HAPLR"). The present 116,000-square-foot facility provides state-of-the-art technology, group study rooms, and two technology centers. A new Community Tech Center on Main Street provides another location for computer use and training, software, recording room and
3-D printing services for library patrons.
EDUCATION
Carmel Clay Schools serves the residents of the City and surrounding Clay Township.
Currently, the school system has one high school, three middle schools, and eleven elementary schools. The superintendent’s office reports 2018 enrollment for the School Corporation at 16,147 students, with 1,067 certified and 1,084 non-certified employees.
Special studies in the areas of Gifted & Talented, English as a New Language, Special Education, and Title I services are provided by the School Corporation. In addition, the J.
Everett Light Career Center provides vocational programs in auto mechanics, computers,
construction trades, dental occupations, electronics, machine trades, and radio/television production, among others.
REDEVELOPMENT EFFORTS
In 1998, the City of Carmel and its Redevelopment Commission began an aggressive effort to redevelop and revitalize the center of the City, including the historic downtown, into a cultural and civic center, undergoing a tremendous amount of new construction, including offices, restaurants, retail, upscale apartments, condominiums, townhomes, and public
spaces and monuments designed to create a vibrant urban atmosphere.
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The oldest part of this area is known today as the Carmel Arts & Design District, home to more than 100 arts- and design-related businesses, including art galleries, design studios, and the Indiana Design Center, where professional designers maintain offices and showrooms.
The City Center redevelopment project is home to the Center for the Performing Arts and several mixed-use buildings, including the Carmel City Center, the James, the Nash, the Mezz on the Monon and nearly a dozen more buildings scheduled to be constructed in the next few years.
The City also continued the redevelopment of the Midtown, which will include mixed-use buildings and has already attracted corporate headquarters in buildings that will be under construction this year. Midtown, situated between City Center and the Arts & Design District, had its first tenants move into their offices by the end of 2017. This area is poised
for rapid growth in 2019 for both residential and business sectors. Public spaces are planned as well.
Finally, the City has approved a redevelopment project area on the southern border of the City government center known as the Proscenium. It is in the beginning stages of
transforming under-utilized land into a mixed-use project with six buildings, located along a heavily traveled roadway.
Development has also occurred just north of the Arts & Design District at Clay Terrace, an
upscale open-air mixed-use and retail environment that includes approximately 500,000
square feet of retail space, dining options, 70,000 square feet of second-story office space, and an area for shows and concerts. The $100-million development opened in October 2004.
Due to substantial growth in residents and daily commuters in Carmel, the City saw the
need to redesign State Road 431, one of two main north–south thoroughfares passing
through the City. After discussions with the State of Indiana, which wanted to maintain several intersections controlled by traffic signals, the City of Carmel chose to move in a new direction – replacing those intersections with grade-separated interchanges, controlled by roundabouts. The state was not willing to do that, so the City took State Road 431 over
from the State and transformed it into free-flowing Keystone Parkway. Carmel received
$90 million from the State for reconstruction expenses. The unique and award-winning design with double roundabout interchanges allows traffic to travel more easily through this previously congested thoroughfare.
After seeing the success of the Keystone Parkway project, the State of Indiana in 2011
began construction on a project to upgrade 13 miles of existing highway on US Highway 31 between I-465 in Indianapolis to State Road 38 north of the City. Now substantially completed, the reconstruction of US Highway 31 has added new roundabout interchanges and reconstructed ramps and bridges and has reduced congestion and improved safety in
the area. Additionally, the creation of new interchanges has helped spur additional
economic development on Main Street.
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PENSION PLANS
The City of Carmel has four pension plans for its employees. All full-time employees, with the exception of public safety officers, are members of the Public Employee Retirement Fund of Indiana (PERF). PERF is classified as a cost-sharing, multiple-employer defined
benefit plan and acts as a common investment and administrative agent for governmental units in Indiana.
Police and fire department officers hired subsequent to April 30, 1977, are members of the 1977 Police Officers and Firefighters’ Pension Fund administered by PERF. Both plans are
fully funded on an actuarially determined accrual basis. Police officers hired prior to May 1, 1977, are members of the Police Pension Fund established in 1925 by the State of Indiana. Firefighters hired prior to May 1, 1977, are members of the Fire Pension Fund established in 1937 by the State of Indiana. Additional information on funding policies and pension costs is in Note 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. Such benefits are self-funded by the City and administrated
by a third party. The retiree healthcare plan is not a contractual obligation that extends beyond the current budget year. The City is under no obligation to continue to offer similar benefits for future new hires.
Additional information regarding anticipated future payments can be found in Note 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 through the passage of an ordinance
no later than November 1, following a public hearing process conducted to obtain taxpayer comments.
This annual budget serves as the foundation for the City’s financial planning and control. The budget is prepared by fund, department (e.g., police), and major category (e.g., personal services). City administrators are generally authorized to transfer limited budgeted amounts within departments between line items within any major category; however, any revisions
that alter the total expenditures of any major category must be approved by the City Council. Transfers between funds must also be approved by the City Council. At the end of the fiscal year, encumbered appropriations are carried forward and become part of the following year’s budget while appropriations that have not been encumbered lapse.
Accounting System The City’s accounting records for general government operations are maintained by the Clerk Treasurer’s Office under a cash basis, with the revenues being recorded when received. Expenditures are recorded when claims are approved and paid. Accounting
records for the City’s proprietary activities are maintained on the full accrual basis, with revenues recorded when earned and expenses when incurred.
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In maintaining the City’s accounting system, consideration is given to the adequacy of internal controls. Internal controls are designed to provide reasonable assurance regarding the safeguarding of assets and to ensure the reliability of financial records and maintaining
accountability for assets. The concept of reasonable assurance recognizes that the cost of control should not exceed the benefits likely to be derived. The evaluation of costs and benefits requires continuing estimates and judgments by City management. We believe that under the Clerk Treasurer’s Office direction, the City’s system of internal accounting controls continues to adequately safeguard assets and provide reasonable assurance that
financial transactions are properly recorded.
Risk Management
The City carries traditional insurance for workers’ compensation, automobile liability and physical damage, general liability, public officials’ liability, property and casualty, inland marine/boiler coverage, and crime insurance coverage. The City also carries builder’s risk and flood insurance for the Wastewater Treatment Utility.
ACKNOWLEDGEMENTS
The preparation of this report involved many dedicated people across the organization. In particular, we would like to express appreciation to Dianne Walthall and Ann Bingman of the Clerk-Treasurer’s office, whose support and dedication made the report possible. We would like to express our appreciation to the State Board of Accounts for their
professionalism and support. Furthermore, we would like to thank C.L. Coonrod and
Company, CPAs, for consulting on the application of GAAP and other technical requirements of the CAFR. Finally, we would like to thank the City Council, without whose leadership and support the preparation and results of this report would not have been possible.
Respectfully submitted,
James Brainard Mayor
Christine Pauley
Clerk-Treasurer
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The Government Finance
Officers Association of the
United States (GFOA) awarded
the City a Certificate of
Achievement for Excellence in
Financial Reporting for its
Comprehensive Annual
Financial Report (CAFR) for the
fiscal year that ended
December 31, 2017. This
Certificate of Achievement is
the highest form of
recognition in governmental
accounting and financial
reporting, and its attainment
represents a significant
accomplishment by a
government and its
management.
A Certificate of Achievement is
valid for a period of one year.
We believe our current report
continues to conform to the
Certificate of Achievement
program requirements, and
we are submitting it to the
GFOA.
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Asst. Clerk of Court Deputy Clerk of City BusinessCity of Carmel, IndianaORGANIZATIONAL CHARTFISCALClerk - TreasurerJUDICIALCourtFinancial AnalystAccounts Payable AdministratorAdministrative AssistantClaims and Payroll AssistantChief Deputy Clerk-TreasurerClerk of Court AdministratorEXECUTIVEMayorBailiffDeputy ClerkI & IILEGISLATIVECommon CouncilSeven Council MembersDirector of FinancePayroll ManagerUTILITIES STREETBrookshire GC ManagerHuman Resources DirectorInformation Services/Communications DirectorDirectorDirectorCity EngineerCorporation CounselPolice ChiefDirectorStreet CommissionerADMINISTRATIONREDEVELOPMENTCOMMUNITY RELATIONS & ECONOMIC DEVELOPMENTCOMMUNITY SERVICES ENGINEERING FIREFire ChiefLAW POLICEOperations ManagerOperations ManagerGrounds MaintenanceEmployment/ Training CoordinatorCommunications SupervisorFinance ManagerPublic RelationsConstruction ManagerBattalion (Chief) - Division Head (Chief) - Accreditation ManagerAssistant Corporation CounselMajor Plant ManagerSkilled Labor / Foreman ICourse ManagementEmployee Benefits ManagerOffice Administrator Deputy DirectorDirectorAsst. City Engineer Deputy Chief City Attorney Asst. ChiefManager of Water QualitySkilled Labor / Foreman IIClub House/Pro Shop OperationsGIS CoordinatorSpecial Event CoordinationPlan Review CoordinatorCaptainAdministrative Assistant I & IISergeantDistribution / Collection ManagerOffice AdministratorFood/Beverage OperationsOffice AdministratorSystems Supervisor Office Administrator Media RelationsEngineering AdministratorExecutive OfficerExecutive/Legal SecretaryLieutenantAdministrative AssistantNetwork AdministratorEconomic DevelopmentConstruction InspectorLieutenantDeferral Program CoordinatorPatrol Officer 1st and 2nd Class, ProbationaryElectrical / Controls EngineerGIS Technician ICommunications Technician ITransportation Development CoordinatorStorm Water AdministratorEngineerCrime Scene/Evidence TechnicianSenior Utilities AccountantAdministrative Assistant IGIS Technician I Office AdministratorRight of Way InspectorFirefighterMechanic IAssistant Plant ManagerSkilled LaborPublic Works CoodinatorQuartermasterQuartermaster / Fleet ManagerForemanProgrammerAdministrative AssistantCustomer Service ManagerChaplainPart-time membersDatabase AdministratorMechanic Mechanic IIHazardous Waste CoordinatorBldg. Inspector/Plans ExaminerPlanning AdministratorTransportation Systems AdministratorEnvironmental PlannerUrban Forest SpecialistAdministrative AssistantBuilding CommissionerAdministrative AssistantCode Enforcement InspectorAdministrative AssistantAdministrative AssistantAssistant Bldg. CommissionerAssistant Bldg. CommissionerCode Enforcement OfficerNetwork Applications/ Analyst17
Mayor City Court Judge Jim Brainard
Clerk-Treasurer
Christine Pauley Brian Poindexter
Vice President
Northwest District
Laura Campbell
Chair of Finance,
Utilities and Rules
Committee,
Parliamentarian
Northeast District
Sue Finkam
Chaplain
City Council-At-Large
Ron Carter
City Council-At-Large
Kevin "Woody" Rider
Central District
Bruce Kimball
Chair of Land Use
and Special Studies
Committee
Southwest District
Anthony (Tony) Green
Council President
Southeast District
Jeff Worrell
City of Carmel, Indiana
List of Elected and Appointed OfficialsFor the Fiscal Reporting Year Ended December 31, 2018
Elected Officials
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For the Fiscal Year Ended December 31, 2018
Appointed Officials
City of Carmel, Indiana
LIST OF ELECTED AND APPOINTED OFFICIALS
(Continued)
Board of Public Works
(Appointed by the Mayor)
Mayor James Brainard
Lori Watson
Mary Ann Burke
Carmel Audit Committee
(Appointed Officials)
Arnold Hanish, Chairman
Josephine Biggers
Kevin “Woody” Rider
Michael N. Ruggiero
Ted A. Spearman
Carmel Redevelopment Authority
(Appointed Officials)
Robert Bush, President
John Getz, Secretary/Treasurer
Lea Lockhart Sasena
Carmel Redevelopment Commission
(Appointed Officials)
William Hammer, President
David C. Bowers, Vice President
William L. Brooks, Secretary
Adam Campagna
Kevin “Woody” Rider
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Since opening in 2011, the Center for the Performing Arts has welcomed more than 700,000 audience
members to more than 1,700 performances. Tickets have been purchased by households in all 92 counties
within Indiana, all 50 states and 23 countries. More than 60 percent of ticket-buying households are located
outside of Hamilton County.
FINANCIAL SECTION
Financial Section:
Independent Auditor's Report
Management Discussion and Analysis
Basic Financial Statements
Required Supplementary Information
Combining and Individual Fund Financial
Statements and Schedules
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STATE OF INDIANA
AN EQUAL OPPORTUNITY EMPLOYER STATE BOARD OF ACCOUNTS
302 WEST WASHINGTON STREET
ROOM E418
INDIANAPOLIS, INDIANA 46204-2769
Telephone: (317) 232-2513
Fax: (317) 232-4711
Web Site: www.in.gov/sboa
INDEPENDENT AUDITOR'S REPORT
TO: THE OFFICIALS OF THE CITY OF CARMEL, HAMILTON COUNTY, INDIANA
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, each major fund, and the aggregate remaining fund information of the City of
Carmel (City), as of and for the year ended December 31, 2018, and the related notes to the financial
statements, which collectively comprise the City's basic financial statements as listed in the Table of
Contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair pres-
entation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America. Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and dis-
closures in the financial statements. The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the City's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City, as of December 31, 2018, and the respective
changes in financial position and, where applicable, cash flows thereof and for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
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INDEPENDENT AUDITOR'S REPORT
(Continued)
Emphasis of Matters
As discussed in Note M to the financial statements, the City adopted new accounting guidance
GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pension. Our
opinion is not modified with respect to these matters.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
Management's Discussion and Analysis, Schedule of Changes in Net OPEB Liability and Related Ratios,
Schedule of Changes in Fiduciary Net Position, Schedule of Employer Contributions, Schedule of Net
Pension Liability and Related Ratios, Schedule of Changes in Net Pension Liability, Schedule of the City's
Proportionate Share of the Net Pension Liability, Schedule of City Contributions, and Budgetary
Comparison Schedules - General Fund, as listed in the Table of Contents, be presented to supplement the
basic financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board who considers it to be an essential part of
financial reporting for placing the basic financial statements in an appropriate operational, economic, or
historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which consisted
of inquiries of management about the methods of preparing the information and comparing the information
for consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying Introductory Section, com-
bining nonmajor fund statements, other budgetary comparison schedules and Statistical Section are
presented for purposes of additional analysis and are not a required part of the basic financial statements.
The combining nonmajor fund statements and other budgetary comparison schedules are the
responsibility of management and were derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and
other additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the combining nonmajor fund statements and other budgetary comparison
schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
The Introductory and Statistical Sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or
provide any assurance on it.
Paul D. Joyce, CPA
State Examiner
June 28, 2019
22
Thisȱpageȱhasȱbeenȱintentionallyȱleftȱblank.
23
Financial Highlights
Overview of the Financial Statements
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.
City of Carmel, Indiana
MANAGEMENT DISCUSSION AND ANALYSIS
For the Fiscal Year Ended December 31, 2018
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, 2018. We encourage readers to consider the information presented
here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on page 8 of this
report, and the transactions, events, and conditions reflected in the City’s financial statements, beginning on page 34 of this report.
• The assets and deferred outflows of resources of the City exceeded its liabilities and deferred inflows at the close of the fiscal year by
$462,741,521 (net position).
• The City's overall net position increased $21,835,733 from the prior fiscal year. The reasons for this overall increase are discussed in the
following sections for governmental activities and business-type activities.
• At the close of the current fiscal year, the City's governmental funds reported combined fund balances of $211,167,353, a decrease of
$93,352,782 in comparison with the prior year. Approximately $23,328,255 of this amount (11.0%) 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 $26,342,591, or approximately 34.9% of total General Fund expenditures.
• The City's total outstanding long-term debt decreased by $12,361,495 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.
24
The government-wide financial statements begin on page 34 of this report.
The basic governmental fund financial statements begin on page 36 of this report.
The basic proprietary fund financial statements begin on page 41 of this report.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements
focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in assessing a government's near-term financing requirements.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside of the government. Fiduciary
funds are not reported in the government-wide financial statements because the resources of those funds are not available to support the
City's own programs. The accounting used for fiduciary funds is much like that used for the proprietary funds.
The City maintains two different types of fiduciary funds. Pension trust funds are used to report resources held in trust for retirees and
beneficiaries covered by the 1925 Police Officers' Pension Plan and the 1937 Firefighters' Pension Plan. Agency funds report resources held
by the City in a custodial capacity for individuals, private organizations, and other governments.
The City maintains seventy-one 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, 2016 Project Fund, 2017 Project Fund, and Redevelopment Authority Debt Service 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.
The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate
redevelopment authority, two 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.
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.
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.
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.
25
The fiduciary fund financial statements begin on page 46 of this report.
Notes to the Financial Statements. The notes provide additional information that is necessary to acquire a full understanding
Government-wide Overall Financial Analysis
City of Carmel's Net Position
Current and other assets
Capital assets
Total assets
Total deferred outflows
of resources
Other liabilities
Long-term liabilities
outstanding
Total liabilities
Total deferred inflows
of resources
Net position:
Restricted
Unrestricted
Total net position
10,575,441
505,353,036 115,815,036
30,924,357 35,065,020
1,138,343,359
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 107 of this report.
107,948,560$
412,830,075
251,386,551
259,647,204
1,065,856
Total
2018 2018
5,174,817 4,919,338
(7,866,476)
2018
-
353,783,464$
8,260,653$
Business-type Activities
823,467,080
332,957,228$
Restated*
6,753,838$
(95,371,605)
440,905,788$
32,770,170
2017
326,201,958$
35,065,020
(5,903,010)
108,958,057$
114,861,067
-
816,588,286
832,376,123
9,527,697
389,538,000
30,924,357
(87,505,129)
1,172,255,915
1,414,703,019
33,836,026
260,455,543
14,702,514
144,119,488
(100,014,641)
462,741,521$
progress in funding its obligation to provide pension and other post-employment benefits (OPEB) to its employees. Required supplementary
information can be found beginning on page 88 of this report.
1,516,337
146,835,665
234,186,451$
920,869,364
1,155,055,815
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.
of the data provided in the government-wide and fund financial statements. The notes to the financial statements begin on page 48 of this
report.
Other Information. In addition to the basic financial statements and accompanying notes, this report also presents required supplementary
information. This information includes budgetary comparison schedules as well as more detailed information concerning the City's
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 $462,741,521 at the close of the fiscal year.
812,141,401
2,208,023
147,272,698
149,480,721
36,713,696
2017
332,955,796$
1,065,843,106
38,230,033
17,995,860
963,860,984
981,856,844
Net investment in
capital assets
(94,111,631)
1,398,798,902
253,701,705
15,787,837 2,716,177
242,447,104$
20,697,724
949,605,021
970,302,745
15,494,779
527,691,142
17,981,547
805,485,533
Governmental Activities
Restated*
2017
*The effect of 2018 prior period adjustments is included in above in 2017. See Note II.M beginning on page 87 for more information.
26
Other post-employment benefits – retiree healthcare obligation
Non-uniform public employee retirement plan obligation
'37 firefighters pension plan obligation
'25 police pension plan obligation
Governmental Activities.During the current fiscal year, net position for governmental activities increased $20,826,236 from the prior
fiscal year for an ending balance of $353,783,464. The increase was six percent, indicating a relatively stable and healthy net position.
Notwithstanding the City’s ultimate liability for the ’25 and ’37 plans, the State of Indiana has established a practice of appropriating funds
to cover these benefits. The State of Indiana is not obligated to continue making these payments, but it has done so every year since 2009.
Consequently, the City has incurred no cost from its own resources to service these plans. Also, the retiree healthcare plan is not a
contractual obligation that extends beyond the current budget year. The liability is shown in the statements because it has been the City’s
consistent practice to provide this benefit. However, the City believes it is not legally obligated to do so.
10,595,746
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 rich commercial tax base, yielding one of the lowest local tax rates in Indiana, in spite of the cost of
debt.
9,762,204
The City reported significant negative unrestricted net position of $94,111,631 in governmental activities. This deficit is due in part to
unfunded pension and retiree healthcare liabilities of $54.1 million, as follows:
11,327,631
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 $100,014,641.
54,111,496$
22,425,915$
The City's overall net position increased $21,835,733 from the prior fiscal year. The reasons for this overall increase are discussed in the
following sections for governmental activities and business-type activities.
(200) ‐ 200 400 600
Millions
City of Carmel
Net Position
December 31, 2018
Unrestricted Restricted Net investment in capital assets
27
The following chart displays Program Revenues and Expenses by function for the City's Governmental Activities.
The following chart displays the revenue composition for the City's Governmental Activities funds.
‐
10,000,000
20,000,000
30,000,000
40,000,000
50,000,000
60,000,000
General government Public safety Streets, infrastructure Economic development Culture and recreation Interest on long‐term
debt
CITY OF CARMEL
Program Revenues vs. Expenses
Program Expenses Program Revenues
Property taxes
29.16%
Other taxes
41.58%
Charges for services
10.01%
Operating grants and
contributions
0.71%
Capital grants and
contributions
0.21%Other
18.34%
City of Carmel
Governmental Activities Revenue
28
City of Carmel's Changes in Net Position
REVENUES:
Program revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Property taxes
Other taxes
Other
Total revenues
EXPENSES:
General government
Public safety
Streets, infrastructure
Water distribution
Sewer collection
Economic development
Culture and recreation
Interest on long-term debt
Other
Total expenses
Transfers
NET POSITION - beginning
Restatement*
NET POSITION - ending
440,905,788
462,741,521$ 295,757,995$
287,287,922 332,957,228
54,455,110
77,655,049
-
-
95,627
32,049,406
-
20,824,320
34,256,685
186,766,537
24,996,549
53,919,299
48,637,707
-
1,906,397 386,624 5,332,128
1,322,719
403,438,367
48,637,707
107,948,560
19,277,075
10,163,336
-
-
(35,316)
10,451,835
16,711,747
17,932,242
10,163,336
196,701,218
21,835,733
-
167,260,807
19,505,730
1,320,506
20,826,236
8,434,757
24,996,549
53,919,299
46,856,126
268,188
108,981,899
-
8,434,757
395,003,610
19,277,075
107,715,688
107,680,372$
20,824,320
10,451,835
-
-
Change in net position
before transfers
15,817,738
163,594,978
30,372,875
41,085,416
46,856,126
7,661,506
16,711,747
-
773,251
2,267,516
15,817,738
-
8,470,073
2,205,229
155,933,472 187,209,627
(808,567)
Increase (decrease) in
net position
2018
18,690,350$
-
218,536,951
4,296,080
54,455,110
77,655,049
21,621,998
-
-
1,322,719
2017
45,892,499$
2018
46,420,571$ 26,621,651$
Business-type ActivitiesGovernmental Activities
2017
Total
20172018
21,835,733
769,837
-
2,205,229
769,837
96,894
19,270,848$
195,644,384
30,372,875
41,085,416
1,009,497
27,730,221$
-
3,909,456
-
-
130,737
31,770,414
-
31,276,155
-
18,149,797
52,042,841
-
29,440,411
2,330,003
34,387,422 18,245,424
96,894
7,238,525
52,042,841
72,128,202
-
-
-
72,128,202
21,621,998
2,267,516
-
17,932,242
353,783,464$
808,567
108,958,057$ 403,438,367$
40,581,397 (7,267,651) (1,266,211) 37,467,421 (8,533,862)
NET POSITION -
beginning, adjusted
295,757,995 294,555,573 107,680,372 403,537,472
(1,320,506)
*Restated *Restated
*The effect of 2018 reclassifications from proprietary to governmental funds is included in above in 2017 for comparability. 2018
restatement above excludes prior period adjustment related to this reclassification. See Note II.M beginning on page 39 for more
29
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 balances
$108,958,057. The total increase in net position for business-type activities (water and sewer) was $1,009,497 or 0.9% from the
prior fiscal year.
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.
At December 31, 2018, the City's governmental funds reported combined fund balances of $211,167,353, a decrease of $93,352,782 in
comparison with the prior year. Approximately 11.0% of this amount, $23,328,255, 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 ($178,817,196), it is committed for particular purposes
($6,007,566), or it is assigned for particular purposes ($3,014,336).
29,440,411 31,770,414
‐
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
CITY OF CARMEL
Business-Type Revenues vs. Expenses
Expenses Revenues
Charges for services
87.28%
Capital grants and
contributions
12.31%
Other
0.41%City of Carmel
Business‐Type Activities Income
30
General Fund Budgetary Highlights
The most significant differences between estimated revenues and actual revenues were as follows:
Revenue source
Property tax
Income tax
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Miscellaneous
Township joinder agreements
Total
The revenue excesses and shortfalls in the above revenue sources net to less than 1% and were not considered significant.
(2,288,660)
39,765,421$
Final General Fund Budget Compared to Actual Results
855,250
457,062
300,336
125,067
(62,239)
Actual Revenues
39,677,955$ (87,466)$
44,518,424
2,144,849
524,552
936,829
Investment earnings, subfund
transactions, and other
Difference
The 2016 Project Fund, a major fund, accounts for $160 million of bond proceeds, which is restricted for certain road projects.
1,533,670
Estimated
Revenues
3,225,489
2,357,948
(584,400)$
33,627
(944,010)
586,791
6,127,724
98,808,280$
Original budget compared to final budget. During the year, there was no need for any significant amendments to increase
Unrestricted net position of the Water Utility at the end of the year was a deficit of $6,955,183; for the Sewer Utility, it was an excess of
$1,052,173. Water Utility net position, before capital contributions and transfers, decreased $1,483,442. The Water Utility decrease was an
improvement on the performance of recent years. Continued improvement is expected as the Water Utility continues to expand and achieve
both economies of scale and greater utilization of recently installed mains. Sewer Utility net position, before capital contributions and
transfers, decreased $96,011, which is manageable.
the original estimated revenues.
Final
The Redevelopment Commission Fund, a major fund, accounts for tax increment revenue, which is restricted for certain economic
development projects. The fund had a $804,293 decrease in fund balance during the year, due primarily to the aquisition of capital assets,
which put the overall fund balance at $8,449,971.
The Redevelopment Authority Debt Service Fund, a major fund, had a $3,019,665 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 $22,554,517, all of which was restricted
for debt service.
The fund balance of the City's General Fund increased by $9,503,984 during the year. The increase was due primarily to a strategic
determination that the City should increase its General Fund operating balance in order to make the City’s bond issuances more attractive to
financial markets.
The 2017 Project Fund, a major fund, accounts for $70.9 million of bond proceeds, which is restricted for certain redevelopment projects
and road projects.
Final
2,019,782
44,218,088
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 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 $23,328,255 while the total fund balance was $26,342,591. As a measure of the General Fund's liquidity, it may be useful to compare
both unassigned fund balance and total fund balance to total General Fund expenditures. Unassigned fund balance represents 30.9% of total
general fund expenditures while total fund balance represents 34.9% of that amount.
(19,003)
589,660
888,877
476,065
8,485,672
98,223,880$
31
The differences by department between estimated expenditures and actual expenditures were as follows:
Department
Clerk-Treasurer
Mayor's Office
City Council
Board of Public Works
Administration
Brookshire Golf Course
Building Operations
City Court
Law Department
Community Services
Personnel/ Human Resources
Information Systems
City Property Maintenance
Public Affairs/ Community Relations
Fire Department
Police Department
Communication Center
Parks Department
Redevelopment Department
Street Department Special Project
Other
Total
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 57–58 of this report.
2017
3,476,884$
3,274,098
572,961
25,709,005
21,316,428
4,805,150
25,030,552
19,919,370
4,411,748
Capital assets. The City's investment in capital assets for its governmental and business-type activities as of December 31,
(7,485,132)$
2018 2018
-
14,092,752
4,130,981$
3,065,965
517,441
24,017,992
284,056,973
167,109,807
-
167,307,122 167,109,807
-
3,437,236 (675,221)
939,626 871,889
Business-type Activities Total
Actual
Expenditures Difference
305,363
- 688,791 688,791
1,162,199
91,489,354$
2,500,098
1,498,680
(67,737)
2,990,790 (5,632)
Estimated
Expenditures
2017
172,645,339$
145,248,122
186,172,975
24,017,992
284,056,973
186,172,975
67,502,993
2018
(2,377,552)
69,022,262
(207,880)$
(101,835)
98,974,486$
205,363 (100,000)
Governmental Activities
69,022,262
1,065,843,106$
199,896,460
311,500,542
167,307,122
67,502,993
1,172,255,915$
207,482,983
1,312,129
187,451,005
3,295,412
195,998,027$
641,104 381,848
1,092,350$
4,631,279
4,112,457
15,254,328
1,141,761 (356,919)
17,631,880
133,567
842,126
Final Final
(678,453)
(1,397,058)
(393,402)
(208,133)
(55,520)
(259,256)
(795,314)
22,567,788
251,386,551$
311,500,542
-
207,482,983
2,744,576 2,545,334 (199,242)
(14,215)
911,993 917,717 5,724
705,778 (136,348)
4,529,444
1,300,230$
191,867,046$
-
-
-
812,141,401$
(149,930)
119,352
2018, amounts to $1,172,255,915 (net of accumulated depreciation). This investment in capital assets includes land, buildings, machinery,
equipment, vehicles, park facilities, roads, highways, bridges, and the water treatment plant. The total increase in capital assets for the
current fiscal year was 9.98%.
2,996,422
253,701,705$
2017
176,122,223$
159,340,874
920,869,364$
-
12,445,455
-
22,567,788
*The effect of 2018 prior period adjustments is included in above in 2017. See Note II.M beginning on page 39 for more information.
Restated*Restated*
32
Outstanding Debt
Compensated absences
OPEB
Pension-related debt
Capital leases
Total
Additional information on the City's long-term debt can be found in Note II.D. on pages 58–64 of this report.
Economic Factors and Next Year's Budgets and Rates
Request for Information
3,651,763
4,116,016
469,456
2018
135,349,944$
481,943
144,588,944$
7,315,666
59,152,872
951,392,872$
8,037,354
Governmental Activities Business-type Activities Total
Unamortized bond
premium
• Recent trends have been favorable with regard to increases in taxable assessed value and increases in taxable income.
The City's total debt decreased by $12,361,495 (1.28%) during the current fiscal year.
806,803,928$
1,318,395
685,065,725$
2018
The following economic factors currently affect the City and were considered in developing the 2019 fiscal year budget.
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 and contract
purchases
62,517,356
1,173,843
20,415,508
29,686,412
2017
832,588,821$
63,033,389
1,641,700
23,827,466
963,754,367$
22,425,915
7,637,383
34,625,637
2017
139,435,614$
516,033
467,857
3,411,958
4,939,225
2017
693,153,207$
Long-term Debt. On March 14, 2018, the City issued $12,645,000 of its Taxable Economic Development Lease Rental Revenue Bonds,
Series 2018A (Midtown West Project). The bonds were issued in order to provide funds to be lent to the Carmel Midtown Building
Corporation and used to fund the contraction of certain projects within the Old Towne Economic Development Area. To satisfy the principal
and interest on the bonds, for the terms of the bonds, the City has pledged its incremental tax revenue.
The City maintains a "AA+" rating from Standard & Poor's on all bonds secured with an ad valorem property tax pledge. The City has one
outstanding 2005 lease bond issue with a property tax pledge that has a split rating: S&P “AA+”/Moody’s “Aa3”. In November, 2017, and
March, 2018, bond issuances received a rating of “AA” from Standard & Poor’s.
35,801,597
•The unemployment rate for the City was 2.6% at the close of the fiscal year, which is significantly below the national rate and also below
the rate of other communities nearby.
2018
820,415,669$
1,787,851
26,077,678
8,157,205
58,670,929
31,685,581
At the end of the current fiscal year, the City had total bonded debt outstanding of $810,412,376. Of this amount, $568,127,432 is debt
backed by an unlimited ad valorem property tax levy, $66,135,000 is debt backed by income tax, $40,800,000 is debt backed by tax
increment, and $135,349,944 is debt backed by utility revenues. The remainder of the City's long-term obligations comprises post-
employment benefit debt, compensated absences, contract purchases, and capital leases.
814,261,992$
721,688
149,492,375$
519,822
•The City enjoys favorable relationships with employee unions and no history of significant contract disputes.
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's
finances. Questions concerning any of the information provided in this report or requests for additional financial information should be
addressed to the Office of the Clerk-Treasurer, One Civic Square, Carmel, Indiana 46032.
33
Governmental
Activities
Business-Type
Activities Total
Cash and investments 211,472,562$ 844,074$ 212,316,636$
Receivables (net of allowances for uncollectibles):
Accounts 430,540 396,067 826,607
Taxes 16,875,098 - 16,875,098
Intergovernmental 351,999 - 351,999
Other - 1,915,981 1,915,981
Inventories - 694,660 694,660
Prepaid expenditures 2,971,544 45,000 3,016,544
Cash, restricted for debt service - 4,364,871 4,364,871
Net pension asset 2,084,708 - 2,084,708
Capital assets:
Not being depreciated: land, improvements, and construction in progress 379,318,051 16,576,436 395,894,487
Other capital assets, net of depreciation 541,551,313 234,810,115 776,361,428
Total assets 1,155,055,815 259,647,204 1,414,703,019
DEFERRED OUTFLOWS OF RESOURCES:
Bond refunding 24,089,995 - 24,089,995
Pensions 8,680,175 1,065,856 9,746,031
Total deferred outflows of resources 32,770,170 1,065,856 33,836,026
Accounts payable 3,712,042 1,042,329 4,754,371
Claims payable 510,271 - 510,271
Accrued payroll and withholdings payable 3,153,793 280,786 3,434,579
Compensated absences 1,318,395 469,456 1,787,851
Accrued interest payable 9,287,046 673,909 9,960,955
Customer deposits - 44,355 44,355
Other current payables - 205,342 205,342
Noncurrent liabilities:
Due within one year:
Bonds payable 23,780,551 4,514,861 28,295,412
Capital leases payable 2,274,097 163,438 2,437,535
Due in more than one year:
Bonds payable 719,956,103 131,317,026 851,273,129
Capital leases payable 5,363,286 356,384 5,719,670
Net pension liability 31,685,581 4,116,016 35,801,597
Other post-employment benefits 22,425,915 3,651,763 26,077,678
Total liabilities 823,467,080 146,835,665 970,302,745
DEFERRED INFLOWS OF RESOURCES:
Bond refunding and renegotiation 277,618 4,232,050 4,509,668
Pensions 7,738,456 687,288 8,425,744
Other post-employment benefits 2,559,367 - 2,559,367
Total deferred inflows of resources 10,575,441 4,919,338 15,494,779
Net investment in capital assets 412,830,075 114,861,067 527,691,142
Restricted:
General government 358,617 - 358,617
Public safety 2,180,767 - 2,180,767
Streets and other infrastructure 12,175,906 - 12,175,906
Economic development 10,488,232 - 10,488,232
Culture and recreation 9,861,498 - 9,861,498
Unrestricted (94,111,631) (5,903,010) (100,014,641)
Total net position 353,783,464$ 108,958,057$ 462,741,521$
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, 2018
ASSETS:
34
Expenses
Governmental
Activities
Business-Type
Activities Total
FUNCTIONS/PROGRAMS:
Governmental activities:
General government 24,996,549$ 221,467$ -$-$ (24,775,082)$ -$ (24,775,082)$
Public safety 53,919,299 1,713,002 1,322,719 - (50,883,578) - (50,883,578)
Streets and other infrastructure 48,637,707 2,869,523 - 386,624 (45,381,560) - (45,381,560)
Economic development 15,817,738 1,482,785 - -(14,334,953) - (14,334,953)
Culture and recreation 21,621,998 12,403,573 - -(9,218,425) - (9,218,425)
Unallocated interest expense 2,267,516 -- - (2,267,516) - (2,267,516)
Total governmental activities 167,260,807 18,690,350 1,322,719 386,624 (146,861,114) - (146,861,114)
Business-type activities:
Water 19,277,075 17,735,563 - 3,279,973 - 1,738,461 1,738,461
Sewer 10,163,336 9,994,658 - 629,483 - 460,805 460,805
Total business-type activities 29,440,411 27,730,221 - 3,909,456 - 2,199,266 2,199,266
TOTAL PRIMARY
GOVERNMENT 196,701,218$ 46,420,571$ 1,322,719$ 4,296,080$ (146,861,114) 2,199,266 (144,661,848)
GENERAL REVENUES AND TRANSFERS:
Property tax 54,455,110 - 54,455,110
Income tax 43,996,077 - 43,996,077
Other taxes 33,658,972 - 33,658,972
Unrestricted investment earnings 4,356,867 130,737 4,487,604
Other 29,899,818 - 29,899,818
Transfers 1,320,506 (1,320,506) -
Total general revenues and transfers 167,687,350 (1,189,769) 166,497,581
CHANGE IN NET POSITION 20,826,236 1,009,497 21,835,733
NET POSITION: beginning 292,375,831 107,680,372 400,056,203
Restatement 40,581,397 268,188 40,849,585
NET POSITION: beginning, adjusted 332,957,228 107,948,560 440,905,788
NET POSITION: ending 353,783,464$ 108,958,057$ 462,741,521$
City of Carmel, Indiana
STATEMENT OF ACTIVITIES
For the Fiscal Year Ended December 31, 2018
The notes to the financial statements are an integral part of this statement.
Net (Expense) Revenue and Changes in Net Position
Charges for
Services
Operating
Grants and
Contributions
Capital
Grants and
Contributions
Program Revenues
35
General Fund
Redevelopment
Commission
Fund
2016
Project Fund
2017
Project Fund
Redevelopment
Authority Debt
Service Fund
Total
Nonmajor
Funds Total
ASSETS:
Cash and investments 22,974,813$ 8,993,518$ 41,742,029$ 41,032,276$ 22,554,517$ 74,175,409$ 211,472,562$
Receivables:
Taxes:
Property 1,336,489 - - - - 490,673 1,827,162
Income 15,047,936 - - - - - 15,047,936
Accounts 315,193 - - - - 115,347 430,540
Intergovernmental - - - - - 351,999 351,999
Due from other governmental funds - - - - - 58,378 58,378
TOTAL ASSETS 39,674,431 8,993,518 41,742,029 41,032,276 22,554,517 75,191,806 229,188,577
LIABILITIES:
Accounts payable 720,436 543,547 - - - 2,448,059 3,712,042
Claims payable - - - - - 510,271 510,271
Due to other funds - - - - - 58,378 58,378
2,608,063 - - - - 545,730 3,153,793
Total liabilities 3,328,499 543,547 - - - 3,562,438 7,434,484
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenue 10,003,341 - - - - 583,399 10,586,740
FUND BALANCES:
Restricted:
General government - - - - - 358,617 358,617
Public safety - - - - - 2,197,006 2,197,006
Highways and streets - - 41,742,029 39,739,254 11,325,735 40,627,853 133,434,871
Drainage and other capital assets - - - - - 1,505,197 1,505,197
Economic development - 8,449,971 - 1,293,022 6,381,663 10,488,232 26,612,888
Culture and recreation - -- - 4,847,119 9,861,498 14,708,617
Committed:
General government - - - - - 3,794,245 3,794,245
Public safety - - - - 1,235,498 1,235,498
Highways and streets - - - - - 893,689 893,689
Economic development - - - - - 84,134 84,134
Assigned:
General government 1,876,866 - - - - - 1,876,866
Public safety 1,025,639 - - - - - 1,025,639
Economic development 962 - - - - - 962
Culture and recreation 110,869 - - - - - 110,869
Unassigned 23,328,255 - - - - - 23,328,255
Total fund balances 26,342,591 8,449,971 41,742,029 41,032,276 22,554,517 71,045,969 211,167,353
TOTAL LIABILITIES, DEFERRED
INFLOWS OF RESOURCES
AND FUND BALANCES 39,674,431$ 8,993,518$ 41,742,029$ 41,032,276$ 22,554,517$ 75,191,806$ 229,188,577$
Accrued payroll withholdings payable
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
BALANCE SHEET
GOVERNMENTAL FUNDS
December 31, 2018
36
Fund Balance - governmental funds 211,167,353$
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.2,971,544
Capital assets used in governmental activities are not financial resources and, therefore, are not
reported in the funds:
Land and construction in progress 379,318,051$
Machinery, equipment, and vehicles 723,227,881
Accumulated depreciation (181,676,568) 920,869,364
Certain receivables are not expected to be collected within the time needed to liquidate
expenditures of the current year and therefore are not considered available in the funds:
Property tax 1,827,162$
Income tax 8,400,838
Cable fees -
Ambulance fees 92,726
Supplemental ambulance fees 266,014 10,586,740
Certain pension and other post-employment benefits that are not due and payable in the current
period are not recognized in the funds:
Pension liability (31,685,581)$
Other post-employment benefit liability (22,425,915) (54,111,496)
The net pension asset is not an available resource and, therefore, is not reported in the funds.2,084,708
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 24,089,995$
Unamortized inflows on bond refunding and defeasement (277,618)
Pension-related inflows (7,738,456)
Pension-related outflows 8,680,175
OPEB-related outflows (2,559,367) 22,194,729
Other noncurrent liabilities are not due and payable in the current period and, therefore, are not
reported in the funds:
Compensated absences 1,318,395$
Accrued interest payable 9,287,046
Unamortized value of capital leases 7,637,383
Unamortized premiums on bonds outstanding 58,670,929
Unamortized principal on bonds outstanding 685,065,725 (761,979,478)
Net position of governmental activities 353,783,464$
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, 2018
37
General FundRedevelopment Commission Fund2016 Project Fund2017Project FundRedevelopment Authority Debt Service FundTotal Nonmajor FundsTotalREVENUES:Property tax39,677,955$ -$ -$ -$ -$ 14,747,806$ 54,425,761$ Income tax44,606,607 - - - - - 44,606,607 Other local tax4,097,891 27,847,907 - - - 1,713,174 33,658,972 Charges for services936,829 399,947 - - - 17,343,006 18,679,782 Investment income308,490 10,323 2,247,880 717,799 79,590 992,785 4,356,867 Licenses and permits2,846,143 - - - - 63,228 2,909,371 Fines and forfeits457,062 - - - - - 457,062 Intergovernmental:Grants- - - - - 4,358,623 4,358,623 State shared revenue824,624 - - - - 2,168,904 2,993,528 Other3,369,687 - - - - 4,056,654 7,426,341 Contributions- - - - - 190,321 190,321 Other1,224,026 3,072,664 6,043,975 - - 1,835,016 12,175,681 Total revenues98,349,314 31,330,841 8,291,855 717,799 79,590 47,469,517 186,238,916 EXPENDITURES:Current:General government23,230,829 - - - - 1,599,401 24,830,230 Public safety44,140,114 - - - - 5,543,614 49,683,728 Streets and other infrastructure1,169,908 - - 15,538,051 - 14,086,935 30,794,894 Economic development527,190 4,323,383 - 15,092,472 - 236,679 20,179,724 Culture and recreation4,664,389 - - - - 9,695,034 14,359,423 Debt service:Principal675,000 2,175,000 - - 15,693,855 3,433,000 21,976,855 Interest79,634 1,193,001 - - 14,199,533 12,889,214 28,361,382 Capital outlay:General government78,015 - - - 33,274 392,224 503,513 Public safety704,114 - - - - 1,736,138 2,440,252 Streets and other infrastructure- - 66,437,620 - - 17,660,543 84,098,163 Economic development2,017 2,977,447 - - - 12,233,274 15,212,738 Culture and recreation106,408 - - - - 4,955,109 5,061,517 Total expenditures75,377,618 10,668,831 66,437,620 30,630,523 29,926,662 84,461,165 297,502,419 EXCESS (DEFICIENCY) OF REVENUESOVER (UNDER) EXPENDITURES22,971,696 20,662,010 (58,145,765) (29,912,724) (29,847,072) (36,991,648) (111,263,503) Continued on next page.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 201838
General FundRedevelopment Commission Fund2016 Project Fund2017Project FundRedevelopment Authority Debt Service FundTotal Nonmajor Funds TotalBond issuance - principal - - - - 1,244,373 12,546,663 13,791,036 Bond issuance - premium - - - - - 243,540 243,540 Proceeds - refunding principal - - - - - - - Proceeds - capital leases- - - - - 2,555,639 2,555,639 Payment to refunded bond escrow agent- - - - - - - Transfers in, governmental funds148,831 1,167,635 - - 42,745,090 16,365,808 60,427,364 Transfer in (out) from (to) enterprise funds1,320,506 - - - - - 1,320,506 Transfers (out), governmental funds(14,937,049) (22,633,938) - - (11,122,726) (11,733,651) (60,427,364) Total other financing sources and uses(13,467,712) (21,466,303) - - 32,866,737 19,977,999 17,910,721 NET CHANGES IN FUND BALANCES9,503,984 (804,293) (58,145,765) (29,912,724) 3,019,665 (17,013,649) (93,352,782) FUND BALANCES: beginning16,838,607 12,627,726 99,887,794 70,945,000 19,534,852 59,030,339 278,864,318 Restatement- (3,373,462) - - - 29,029,279 25,655,817 FUND BALANCES: beginning, adjusted16,838,607 9,254,264 99,887,794 70,945,000 19,534,852 88,059,618 304,520,135 FUND BALANCES: ending26,342,591$ 8,449,971$ 41,742,029$ 41,032,276$ 22,554,517$ 71,045,969$ 211,167,353$ The notes to the financial statements are an integral part of this statement.City of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESGOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018(Continued)OTHER FINANCING SOURCES AND (USES):39
(93,352,782)$
Capital outlays 126,743,767$
Depreciation expense (18,015,804)
108,727,963
Decrease (increase) in bonds payable 8,087,482$
Amortization of certain bond-related prepaid expense and deferred inflows and outflows (2,146,593)
Amortization of premium on bonds outstanding 4,089,965
Bond issuance premium (243,540)
Principal payments on capital leases 2,233,922
Capital lease proceeds (2,555,639)
Compensated absences (144,552)
9,321,045
Revenues in the Statement of Activities that do not provide current financial resources are not reported
as revenues in the funds:
Property tax 29,349$
Income tax (610,530)
Ambulance fees (30,742)
Ambulance fee supplemental 88,671
(523,252)
Expenses in the Statement of Activities for pension and other post-employment benefits are not recognized
as expenditures in the funds:
1925 Police Officers' plan 210,125$
1937 Firefighters' plan 261,425
1977 Firefighters' plan 417,492
1977 Police Officers' plan 295,898
Civilian public employee retirement plan (159,656)
Other post-employment benefits - retiree health insurance (3,224,365)
(2,199,081)
(1,147,657)
Change in net assets of governmental activities (Statement of Activities)20,826,236$
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, 2018
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.
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. Following is the amount by
which capital outlay expenditures exceeded (were less than) depreciation:
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:
40
Water Utility Sewer Utility
Total
Enterprise
ASSETS:
Current assets:
Cash and investments 115,212$ 728,862$ 844,074$
Accounts receivable (net of allowance)178,084 217,983 396,067
Other receivables 1,077,285 838,696 1,915,981
Due from associated utility - 971,259 971,259
Inventories 350,308 344,352 694,660
Prepaid items 15,625 29,375 45,000
Total current assets 1,736,514 3,130,527 4,867,041
Noncurrent assets:
Restricted cash, debt service 1,519,966 2,844,905 4,364,871
Capital assets:
Land, improvements to land and
construction in progress 11,499,454 5,076,982 16,576,436
Utility plant in service, net of depreciation 167,307,122 67,502,993 234,810,115
Total noncurrent assets 180,326,542 75,424,880 255,751,422
Total assets 182,063,056 78,555,407 260,618,463
DEFERRED OUTFLOW OF RESOURCES: pension 572,055 493,801 1,065,856
Continued on next page.
City of Carmel, Indiana
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2018
Business-Type Activities - Enterprise Funds
41
Water Utility Sewer Utility
Total
Enterprise
LIABILITIES:
Current liabilities:
Accounts payable 731,442$ 310,887$ 1,042,329$
Accrued wages payable 149,010 131,776 280,786
Compensated absences 264,672 204,784 469,456
Due to associated governmental funds - - -
Due to associated utility 971,259 - 971,259
Customer deposits 44,355 - 44,355
Rent paid in advance - - -
Revenue bonds payable, current portion 3,191,000 1,323,861 4,514,861
Capital leases payable, current portion 108,591 54,847 163,438
Accrued interest payable 591,433 82,476 673,909
Other 205,342 205,342
Total current liabilities 6,257,104 2,108,631 8,365,735
Noncurrent liabilities:
Bonds payable 115,362,378 15,954,648 131,317,026
Capital leases payable 256,137 100,247 356,384
Retiree health care 1,950,481 1,701,282 3,651,763
Pension liability 2,209,105 1,906,911 4,116,016
Total noncurrent liabilities 119,778,101 19,663,088 139,441,189
Total liabilities 126,035,205 21,771,719 147,806,924
DEFERRED INFLOW OF RESOURCES
Pension 368,874 318,414 687,288
2008 bond call rights waiver 4,232,050 - 4,232,050
Total deferred inflow of resources 4,600,924 318,414 4,919,338
NET POSITION:
Net investment in capital assets 58,954,165 55,906,902 114,861,067
Restricted - - -
Unrestricted (6,955,183) 1,052,173 (5,903,010)
Total net position 51,998,982$ 56,959,075 108,958,057$
City of Carmel, Indiana
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
December 31, 2018
(Continued)
Business-Type Activities - Enterprise Funds
The notes to the financial statements are an integral part of this statement.
42
Water Utility Sewer Utility
Total
Enterprise
OPERATING REVENUES:
Residential sales 12,931,221$ 5,216,850$ 18,148,071$
Commercial and industrial sales 4,251,458 4,651,438 8,902,896
Other operating revenue 552,884 126,370 679,254
Total operating revenues 17,735,563 9,994,658 27,730,221
OPERATING EXPENSES:
Source of supply and expense - operation and maintenance 970,106 - 970,106
Water treatment expense - operation and maintenance 3,816,465 - 3,816,465
Transmission and distribution 3,364,647 - 3,364,647
Collection system - operations and maintenance - 1,052,261 1,052,261
Pumping - operations and maintenance - 344,661 344,661
Treatment and disposal expense - operation and maintenance - 3,703,060 3,703,060
Customer accounts 729,482 645,508 1,374,990
Administration and general 821,037 964,365 1,785,402
Payroll tax expense 281,200 239,951 521,151
Utility receipts tax expense 251,462 - 251,462
Depreciation expense 4,193,172 2,631,991 6,825,163
Other 245,651 92,286 337,937
Total operating expenses 14,673,222 9,674,083 24,347,305
OPERATING INCOME (LOSS)3,062,341 320,575 3,382,916
NONOPERATING REVENUES (EXPENSES):
Interest and investment revenue 58,070 72,667 130,737
Miscellaneous revenue 329,601 1,150 330,751
Amortization of debt premium - 7,156 7,156
Interest expense (4,912,499) (495,372) (5,407,871)
Gain (loss) from disposition of property (20,791) (2,175) (22,966)
Other (164) (12) (176)
Total nonoperating revenue (expenses)(4,545,783) (416,586) (4,962,369)
(1,483,442) (96,011) (1,579,453)
CAPITAL CONTRIBUTIONS AND TRANSFERS:
Capital contributions 3,279,973 629,483 3,909,456
Transfers to associated city (839,763) (480,743) (1,320,506)
Total capital contributions and transfers 2,440,210 148,740 2,588,950
CHANGE IN NET POSITION 956,768 52,729 1,009,497
NET POSITION: beginning (See Note II.M.)50,901,735 56,778,637 107,680,372
Restatement (See Note II.M.)140,479 127,709 268,188
NET POSITION: beginning, adjusted 51,042,214 56,906,346 107,948,560
TOTAL NET POSITION: ending 51,998,982$ 56,959,075$ 108,958,057$
The notes to the financial statements are an integral part of this statement.
CHANGE IN NET POSITION BEFORE CONTRIBUTIONS AND
TRANSFERS
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31, 2018
Business-Type Activities - Enterprise Funds
City of Carmel, Indiana
43
Water Utility Sewer Utility
Total
Enterprise
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers and users 17,982,446$ 10,197,891$ 28,180,337$
Payments for goods and services (4,927,300) (2,247,914) (7,175,214)
Payments to employees (5,292,127) (4,601,923) (9,894,050)
Other receipts 654,288 15,844 670,132
Net cash provided (used) by operating activities 8,417,307 3,363,898 11,781,205
Capital contributions 2,115,137 275,213 2,390,350
Acquisition and construction of capital assets (1,745,923) (759,788) (2,505,711)
Payment of capital debt, including refunded debt (2,903,800) (1,288,670) (4,192,470)
Interest paid on debt (3,534,471) (500,931) (4,035,402)
Proceeds from sale of equipment 3,886 3,886
Proceeds from sale of refunding revenue bonds - - -
Net cash provided by capital
and related financing activities (6,069,057) (2,270,290) (8,339,347)
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received 58,069 72,667 130,736
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES:
Transfers to governmental funds (839,763) (480,743) (1,320,506)
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,566,556 685,532 2,252,088
CASH AND CASH EQUIVALENTS: beginning 68,622 2,888,235 2,956,857
CASH AND CASH EQUIVALENTS: ending 1,635,178$ 3,573,767$ 5,208,945$
Continued on next page.
Business-Type Activities - Enterprise Funds
For the Fiscal Year Ended December 31, 2018
CASH FLOWS FROM CAPITAL AND RELATED FINANCING
ACTIVITES:
City of Carmel, Indiana
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
44
Water Utility Sewer Utility
Total
Enterprise
RECONCILIATION OF OPERATING INCOME (LOSS) TO
Operating income (loss)3,062,341 320,575 3,382,916
income (loss) to net cash provided (used)
Depreciation expense 4,193,172 2,631,991 6,825,163
Nonoperating income (expense) 329,438 1,138 330,576
(Increase) decrease in assets:
Accounts receivable (2,510) (17,813) (20,323)
Other 574,079 284,458 858,537
Interfund receivables - (116,180) (116,180)
Inventories (54,506) (17,755) (72,261)
Prepaid items - 46,250 46,250
Increase (decrease) in liabilities:
Accounts payable 339,496 135,694 475,190
Wages payable (1,971) 3,360 1,389
Compensated absence payable 1,706 (106) 1,600
Retiree health care 163,260 76,545 239,805
Pension 82,391 15,741 98,132
Other current liabilities (269,589) - (269,589)
Total adjustments 5,354,966 3,043,323 8,398,289
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES 8,417,307$ 3,363,898$ 11,781,205$
NONCASH INVESTING, CAPITAL, AND FINANCING ACTIVITIES:
Contributions of capital assets and aid in construction 1,139,729$ 255,318$ 1,395,047$
The notes to the financial statements are an integral part of this statement.
Adjustments to reconcile operating
by operating activities:
City of Carmel, Indiana
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended December 31, 2018
(Continued)
NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES:
Business-Type Activities - Enterprise Funds
45
Pension Trust
Funds Agency Funds
ASSETS:
Cash and investments $ 136,766 $ 157,873
Receivable from State of Indiana 99,439
Total assets 236,205 157,873
LIABILITIES:
Payroll withholdings 99,439 -
Court escrow - 157,873
Total liabilities 99,439 157,873$
NET POSITION: restricted for pensions 136,766$
The notes to the financial statements are an integral part of this statement.
City of Carmel, Indiana
STATEMENT OF FIDUCIARY NET POSITION
December 31, 2018
FIDUCIARY FUNDS
46
Pension Trust
Funds
ADDITIONS:
State of Indiana contributions 1,149,210$
Investment income 1,513
Miscellaneous revenue 4,707
Total additions 1,155,430
DEDUCTIONS:
Benefits to plan members and beneficiaries 1,189,816
Administrative expenses 2,346
Total deductions 1,192,162
NET INCREASE IN NET POSITION (36,732)
NET POSITION: beginning 173,498
NET POSITION: ending - restricted for pensions 136,766$
The notes to the financial statements are an integral part of this statement.
FIDUCIARY FUNDS
City of Carmel, Indiana
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended December 31, 2018
47
I. Summary of Significant Accounting Policies
A. Accounting Principles
B. Reporting Entity
C. Basis of Presentation – Government-Wide Statements
City of Carmel
NOTES TO BASIC FINANCIAL STATEMENTS
For the Fiscal Year Ended December 31, 2018
The accounting policies of the City of Carmel, Indiana (City) applied to the accompanying financial statements for the year ended
December 31, 2018, conform to the accounting principles generally accepted in the United States of America (GAAP) for local
governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing
governmental accounting and financial reporting principles. A summary of the City's significant accounting policies employed in the
preparation of the accompanying financial statements follows.
The City of Carmel (City) is a municipal corporation governed by an elected mayor as executive, an elected clerk-treasurer as fiscal
officer, and a seven-member council as legislative and fiscal body. It is the primary general government reporting entity. The
accompanying financial statements present the government and its blended component units, entities for which the government is
considered to be financially accountable. Blended component units are, in substance, part of the primary government's operations,
even though they are legally separate entities. Thus, blended component units are appropriately presented within the funds of the
primary government.
There are four blended component units. The Carmel Redevelopment Authority is a separate body corporate and politic organized
under Indiana Code Chapter 36-7-14.5 as an instrumentality of the City of Carmel to facilitate long-term financing of certain City
capital projects. City officials appoint its board and the City is ultimately liable for all its debt. It is included as a blended component
unit because its board is appointed by City officials and it provides a financial benefit to the City, though the City does not have
fiduciary responsibility for it. The Carmel Midtown Building Corporation (CMBC) is a legally separate not-for-profit corporation that
serves as a conduit to facilitate long-term financing of certain City capital projects. City officials appoint its board and the City is
ultimately liable for all its debt. It is included as a blended component unit because its board is appointed by City officials and it
provides a financial benefit to the City, though the City does not have fiduciary responsibility for it. The Carmel City Center
Community Development Corporation (4CDC) is a legally separate not-for-profit corporation that primarily supports the economic
development efforts of City government. Accordingly, it benefits almost exclusively the primary government. It is included as a
blended component unit because its board is appointed by City officials and it provides a financial benefit to the City, although City
officials cannot compel board members to act and the City does not have a fiduciary responsibility for it. The Carmel Redevelopment
Authority, CMBC, and 4CDC do not issue separate financial statements. The City of Carmel Local Public Improvement Bond Bank
(The Carmel Bond Bank) is an instrumentality of the City and serves as a mechanism for City agencies to combine their individual
debt issuances into larger issuances in order to reduce costs and obtain better terms. Its board is appointed by City officials, and the
City is liable for all of its debt. The Carmel Bond Bank issues separate financial statements, which may be obtained at Carmel City
Hall, Third Floor, One Civic Square, Carmel, Indiana 46032.
The two government-wide financial statements, the Statement of Net Position and the Statement of Activities, report information on
all of the non-fiduciary activities of the City. Governmental activities, which include those activities primarily supported by taxes or
intergovernmental revenue, are reported separately from business-type activities, which generally rely on fees and charges for support.
While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities
column incorporates data from governmental funds, while business-type activities incorporate data from the government's enterprise
funds. Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the
latter are excluded from the government-wide financial statements.
The Statement of Activities demonstrates the extent to which the direct expenses of a functional category are offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include charges to
customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function. They
also include operating and capital grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function. Taxes and other items properly excluded from program revenues are reported as general revenue.
48
D. Basis of Presentation – Fund Financial Statements
The government also reports certain other funds:
E. Measurement Focus and Basis of Accounting
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.
During the course of operations, the government has activity between funds for various purposes. Any residual balances outstanding at
year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial
statements, certain eliminations are made in the preparation of the government-wide financial statements. Balances between the funds
included in governmental activities (i.e., the governmental funds) are eliminated, so that only the net amount is included as internal
balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the
enterprise funds) are eliminated, so that only the net amount is included as internal balances in the business-type activities column.
Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements, these
amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made
in the preparation of the government-wide financial statements. Transfers between the funds included in the governmental activities
column are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances
between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the
business-type activities column.
The government reports the following major governmental funds:
The government reports the following major proprietary 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 Commission Fund is used to account for the collection and expenditure of tax increment financing revenue and
certain other economic development activities.
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 Redevelopment Authority Debt Service Fund is used to account for the accumulation of resources that are restricted, committed,
or assigned for the payment of principal and interest on certain long-term obligations of governmental funds.
The 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 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.
Trust funds account for the activities of certain pension plans administered by the City.
Agency funds account for payroll tax withholdings and municipal court escrows.
The 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.
49
F. Reconciliation of Government-Wide and Fund Financial Statements
G. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Net Position/Fund Balance
1. Cash and Cash Equivalents
Investments are reported at fair value.
2. Inventories and Prepaid Items
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, certificates of deposit, and securities backed
by the full faith and credit of the United States Government.
The 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, 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.
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 and pension funds are reported using the economic resources measurement focus and the accrual basis of
accounting. The agency funds have no measurement focus, but utilize the accrual basis of accounting for reporting assets and
liabilities.
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.
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.
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.
50
3. Capital Assets
The capitalization threshold below is determined by the asset class.
a)Land is capitalized regardless of the value or cost;
Buildings 20–100 years
Improvements Other than Buildings 10–20 years
Machinery, Equipment, and Vehicles 5–20 years
Infrastructure 20–50 years
4. Compensated Absences
5. Bond Premiums and Discounts
6. Deferred Outflows/Inflows of Resources
Capital assets are recorded at cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at the
acquisition value at the date of donation.
A full year of depreciation is taken in the year of acquisition for capital assets employed in governmental activities, and depreciation is
deferred to the year after acquisition for those employed in business-type activities.
b) Buildings, infrastructure, vehicles, machinery, and equipment must be capitalized when the useful life is at least 1 year and the
cost is $5,000 or more for assets employed in governmental activities and $750 in business-type activities.
In addition to assets, the Statement of Net Position reports a separate section for deferred outflows of resources. This separate
financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s)
and so will not be recognized as an outflow of resources (expense/expenditure) until then. The government only has two items
reported on the government-wide statement of net position that qualify for reporting in this category. One is the deferred charge on
refunding. A deferred charge on refunding results from the difference in the carrying value of refunded debt and its reacquisition
price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. The other is certain pension-
related debits, arising from changes in actuarial assumptions and timing differences.
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 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.
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.
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.
Bond premiums and discounts are amortized in the government-wide and proprietary statements on a straight-line basis over the life of
the issues.
51
7. Net Position Flow Assumption
8. Fund Balance Flow Assumptions
9. Fund Balance/Net Position
a) Non-spendable fund balance (inherently non-spendable) include the:
• Portion of net resources that cannot be spent because of their form.
• Portion of net resources that cannot be spent because they must be maintained intact.
b) Restricted fund balance (externally enforceable limitations on use) include amounts subject to:
• Limitations imposed by creditors, grantors, contributors, or laws and regulations of other governments.
• Limitations imposed by law through constitutional provision or enabling legislation.
c) Committed fund balance (self-imposed limitations set in place prior to the end of the period):
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).
In addition to liabilities, the Statement of Net Position reports a separate section for deferred inflows of resources. This separate
financial statement element represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until that time. The items that qualify for reporting in this category are credits resulting from bond
refunding and pension-related credits arising from changes in actuarial assumptions and timing differences. The former category
includes the current value of renegotiated terms of certain bonds, particularly the waiving of call rights on certain bonds. Such
renegotiation does not constitute refunding per se but has a similar economic and accounting effect.
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.
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.
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:
• 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.
52
e) Unassigned fund balance (residual net resources) is the:
10 . Use of Estimates
11. Restricted Net Position
H. Revenues and Expenditures/Expenses
1 . Program Revenues
2 . Property Taxes
3 . Income Taxes
All net position reported as restricted in the accompanying Statement of Net Position is restricted due to legally enforceable
contractual obligations or Indiana law.
• Total fund balance in the General Fund is the excess over non-spendable, restricted, committed, and assigned
fund balance.
• Negative unassigned fund balance is the excess over non-spendable, restricted, and committed fund balance
over total fund balance.
The preparation of the basic financial statements in conformity with GAAP requires the City's management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of
the basic financial statements and/or the reported amounts of revenues and expenditures/expenses during the reporting period. Actual
results could differ from those estimates, but the City believes that the differences will be insignificant. Among the items subject to
estimates are pension liabilities and certain receivables.
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 estimated market value (determined in accordance with rules and regulations adopted by the Indiana
Department of Local Government Finance). Some taxpayers are eligible for certain deductions and credits. All property taxes
outstanding at year end are recorded as receivable with an offset to deferred inflows of resources—unavailable revenue for amounts
that are not available in the current period.
The 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.
53
4. Proprietary Funds Operating and Nonoperation Revenues and Expenses
II. Detailed Notes on Certain Activities and Funds
A. Cash and Cash Equivalents
Deposits
Investments
It is the policy of the City to invest public funds for terms up to five years.
Below is a segmented time distribution for the City's debt investments at December 31, 2018:
Investment Type
United States Treasury notes
U.S. Gov't Money Market Funds
Total
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.
Fair Value
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.
18,007,747$
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, services,
premiums, and rents. The Water Fund also recognizes as operating revenue the portion of tap fees intended to recover the cost of
connecting new customers to the system. Operating expenses for enterprise funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating
revenues and expenses.
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's total cash deposits at December 31, 2018, were $216,681,507, of which $4,364,871 is restricted and $212,316,636 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 $250,000 are insured by the Indiana Public Deposits Insurance Fund (Fund) via the
pledged collateral from the institutions securing deposits of public funds. The Fund is a multiple financial institution collateral pool
administered by the State of Indiana.
Interest rate risk is the risk that the fair value of investments will be adversely affected by a change in interest rates. The City has no
formal policy regarding interest rate risk. The City may invest in securities for more than two years and not more than five years in
accordance with Indiana law. Under this policy, investments having maturities of more than two years are limited to 25% of the total
investments and other cash and cash equivalents held by the City.
Investment Maturities (in Years)
-$
1 to 5
12,328,775$
30,336,522$
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.
-
-$
-
12,328,775$
1,845,172
More than 5Less than 1
16,162,575$ 28,491,350$
1,845,172
54
B. Receivables and Transfers
1.Receivables
Revenue Source
Property taxes
Income taxes
Other
Intergovernmental
Due from other funds
Total
Revenue Source
Accounts and other
Due from utility
Total
Governmental Funds:
Description
Property taxes
Income taxes
Ambulance fees
Supplemental Medicaid
Other unavailable
Total unavailable revenue
266,014
-
971,259
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.
8,400,838
92,726
10,586,740$
Unavailable
Revenue
1,827,162$
Water
The City has no deposits or investments denominated in foreign currencies and does not foresee having any foreign currency risk in
the future.
Receivables at December 31, 2018, for business-type activities of the City's individual major enterprise funds and nonmajor enterprise
funds, in the aggregate, consisted of the following:
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:
Total
Receivables at December 31, 2018, for governmental activities of the City's individual major governmental funds and nonmajor
governmental funds, in the aggregate, consisted of the following:
Utility
1,255,369$
-
1,255,369$
Sewer
Utility
1,056,679$
2,027,938$
Total
2,312,048$
971,259
3,283,307$
430,540
15,047,936
351,999
17,716,015$
1,336,489$
15,047,936
315,193
-
-
16,699,618$
General Nonmajor
490,673$
-
58,378
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.
58,378
115,347
351,999
1,016,397$
1,827,162$
55
2. Transfers
a)Transfers among Governmental Funds
Transfers out
General
RDC
RDA Debt
Nonmajor
Total
A nonmajor fund transferred $100,000 to the General Fund to cover street-related contracted services.
A nonmajor fund transferred $48,831 from a FEMA grant to the General Fund for additional fire training classes.
A nonmajor funds transferred $207,500 to the Redevelopment Commission as a grant.
The General Fund transferred $153,234 to a nonmajor fund for certain road projects.
The General Fund transferred $65,000 to a nonmajor fund to cover the cost of preservation of historic buildings.
The Redevelopment Commission transferred $877,798 to another nonmajor fund to fund its debt service reserve.
A nonmajor fund transferred $16,116 to another nonmajor fund to facilitate cash flow.
A nonmajor fund transferred $62,500 of grant monies to another nonmajor fund to cover community engagement activities.
b) Transfers between Governmental and Enterprise Funds
From (to):
11,122,726
11,733,651
60,427,364$
General
839,763$
480,743
1,320,506$
Total
839,763$
480,743
1,320,506$
Transfers In (Out)
The General Fund transferred $956,363 to the Redevelopment Commission Fund to satisy debt service payments.
The RDA Debt Service Fund and nonmajor funds transferred $11,122,726 and $3,112,165, respectively, to a nonmajor fund to satisfy
debt service payments.
A nonmajor fund transferred $3,772 to the Redevelopment Commission Fund to cover the administrative fees.
The General Fund transferred $234,130 of proceeds from a sale of property to a nonmajor fund to pay for local road and street
Water Fund
The Water Fund transferred $839,763 of available excess cash to the General Fund.
-
211,272
1,167,635$
RDA Debt
Service
13,528,322$
21,712,347
-
7,504,421
42,745,090$
Nonmajor
452,364$
921,591
11,122,726
3,869,127
16,365,808$
Total
14,937,049$
22,633,938
Sewer Fund
The Redevelopment Commission transferred $43,793 of excess tax incremental revenue to another nonmajor fund in accordance with
a trust indenture.
General
-$
-
-
148,831
148,831$
Redevelopment
Commission
956,363$
Total
-
The General Fund, Redevelopment Commission, and nonmajor funds made lease payments to the Redevelopment Authority in the
amounts of $13,528,322, $21,712,347, and $7,504,421, respectively, in order to satisfy debt service payments.
The Sewer Fund transferred $480,743 of available excess cash to the General Fund.
A nonmajor fund transferred $678,346 to another nonmajor fund in compliance with a City ordinance.
Transfers In
56
C. Capital Assets
Governmental Activities:
Capital assets, not being depreciated
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total capital assets, being depreciated
Less accumulated depreciation, for
Buildings and improvements
Machinery, equipment, and vehicles
Infrastructure
Total accumulated depreciation
Total capital assets, being depreciated, net
Governmental activities capital assets, net
Business-Type Activities:
Capital assets, not being depreciated
Land & land rights
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated
Utility plant & equipment in service
Total capital assets, being depreciated
Less accumulated depreciation for
Utility plant & equipment in service
Total capital assets, being depreciated, net
Business-type activities capital assets, net
Governmental Activities:
General Government
Economic Development
Culture & Recreation
Public Safety
Streets and other infrastructure
Total governmental depreciation
(50,145) 234,810,115
18,015,804
145,248,122
17,569,636
216,300,527 26,173,144
37,231,661
-$
Capital asset activity for Business-Type Activities for the year ended December 31, 2018, was as follows:
494,247,940
- 433,150,604
658,253,892
9,788,092
273,335,724 5,553,354 (93,900)
30,127,552 4,808,136 34,935,688
37,203,655
368,402$
Depreciation
4,130,981$
(4,165,015)$
-
273,335,724 5,553,354 (93,900) 278,795,178
47,658,606
(451,527)
121,650,062
164,005,952 18,015,804
395,918,943
(55,000) 242,418,671
46,034,422 2,020,711 (396,527)
812,141,401$
187,451,005
379,318,051
920,869,364$ (56,550,469)$
(4,114,870)
3,121,670 (4,114,870) 16,576,436
654,097$
14,092,752
(345,188) 181,676,568
278,795,178
Capital asset activity for Governmental Activities for the year ended December 31, 2018, was as follows:
6,825,163 (43,755) 43,985,063
251,386,551$
22,016,430
-
19,221,707$ -$ 191,867,046$
Depreciation expense was charged as follows for the year ended December 31, 2018:
236,132,069 (1,271,809)
111,861,970
12,445,455
(106,339) 541,551,313
Deletions/ BalanceBalance
Balance Additions/ Deletions/ Balance
Dec 31, 2017 Transfers In Transfers Out Dec 31, 2018
Expense
5,536,910
85,719
1,323,723
10,701,050
Dec 31, 2017 Transfers In Transfers Out Dec 31, 2018
(56,444,130)
Additions/
3,419,576 (345,188) 25,090,818
1,849,861$
(56,444,130)
65,425,516
98,647,013
253,701,705$
117,868,720
723,227,881
172,645,339$
317,893,461
165,278,432$
47,409,712
3,476,884$
2,467,573
57
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, 2018:
Governmental Activities:
Bonds and contract purchases
Unamortized bond premium
Capital leases
Subtotal
Compensated absences
Portion of above due within one year
Portion of capital leases payable due in more than one year
Bonds payable due in more than one year
Business-Type Activities:
Sewer utility revenue bonds
Water utility revenue bonds
Water utility other long-term debt
Total business-type bonds
Sewer utility bond premium
Sewer utility bond discount
Water utility bond premium
Utility capital leases
Compensated absences
Portion of above due within one year
Portion of capital leases payable due in more than one year
Bonds payable due in more than one year
6,825,163
6,825,163
24,840,967$
62,517,356
16,590,215
Balance Due Within
762,986,229
5,147,755
Dec 31, 2018
243,540 (4,089,967) 58,670,929
(21,878,518)$
Total business-type activities long-
term liabilities
One Year
139,951,647
-
Dec 31, 2017
Subtotal, bonds, premiums, and
discounts
139,435,614 - (4,085,670) 135,349,944
4,514,861
(28,202,407)
521,000
27,373,043$
Balance
-
131,317,026$
469,456
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,
(4,323,018)$
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.
764,160,072$
Less,
1,599
356,384
(28,828,189)$
17,263,420$
1,392
27,373,043
-
-
2,991$
-
770,334
17,360,549$
-$
Additions
751,374,037
(201,866)
-
5,147,755$
719,956,103$
2,670,000
13,791,036$
105,598,524
12,488,000
466,854
752,692,432
1,318,395
(8,548)
-
7,315,666 2,555,639 (2,233,922) 7,637,383 2,274,097
(2,285,000)
(512,000)
(625,782)
135,831,887
136,821,165
Dec 31, 2018
519,822
Total bonds, contract purchases,
capital leases, and compensated
absences
Balance
1,323,861$
163,438
5,363,286
685,065,725$
26,054,648
(4,121,152)
23,780,551$
1,318,395
30,156
(15,067)
Reductions
(26,934)
469,456
Reductions One Year
467,857
107,883,524
13,000,000
493,788
141,141,192$
18,552,090$
721,688
38,704
(16,459)
Balance Due Within
Dec 31, 2017
693,153,207$
Additions
(1,288,670)$
1,392
4,514,861
1,173,843
58
Governmental Activities Long-Term Debt:
2013
2.250%-
5.000%
2.000%-
4.000%
Original
Amount
2.000%-
5.000%2016 2036
2.000%-
5.000%
Lease Rental Revenue
Refunding Bonds of 2011 (West
Clay road)
Lease Rental Revenue
Multipurpose Bonds, Series
2012A
Lease Rental Revenue
Multipurpose Bonds, Series
2012B
Lease Rental Revenue Bonds of
2005 (unrefunded portion)
Redevelopment District Bonds of
2013
Lease Rental Revenue
Refunding Bonds, Series 2014
General Obligation Bonds,
Series 2016A
General Obligation Bonds,
Series 2016B
General Obligation Bonds,
Series 2016C
General Obligation Bonds,
Series 2016D
General Obligation Bonds,
Series 2016E
2.625%-
4.000%
1.190%-
3.000%
115,900,000
69,245,000
1,519,000
Bonds issued in order to acquire capital assets, for which the City has pledged an
unlimited ad valorem property tax levy to satisfy the principal and interest on the
bonds as they become due:
1,467,000
35,703,432
2.000%-
5.000%
2027
2.000%-
5.000%2016 2036
5.000%
2036 1,577,000 1,467,000
2035
2.000%-
5.000%
46,460,000
6,535,000
19,649,150*
55,380,000
2016 2036
2005 2026
2.000%-
5.000%
Year of
Issue
Year of
Maturity
25,190,000$
1,633,000
2016 2036 1,599,000 1,487,000
2036
2.000%-
5.000%2016
2036
Interest Rate
55,685,000
2016
2014
2.000%-
5.000%2016
1,214,000
13,410,000$
115,900,000
Outstanding
1,426,000 1,326,000
1,276,000
1,394,000
1,373,000
2016
2.000%-
5.000%
2012 2038
2012 2025
20242011
6,145,000
Amount
2016 2036 1,089,000 1,012,000
1,296,000
1,129,000
2016
5.800%-
8.450%
2016 2036
1,373,000 1,276,000
2036 1,513,000 1,407,000
2036
1,577,000
General Obligation Bonds,
Series 2016F
General Obligation Bonds,
Series 2016G
General Obligation Bonds,
Series 2016H
General Obligation Bonds,
Series 2016J
General Obligation Bonds,
Series 2016K
2.000%-
5.000%
2.000%-
5.000%
General Obligation Bonds,
Series 2016I
59
* 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, 2018, the total of payments on the bonds listed above was 0.517% of taxable assessed value.
2.000%-
5.000%
2036
Bonds issued in order to acquire capital assets, for which the City has pledged its
county option income tax (COIT) revenue up to the amount needed to satisfy the
principal and interest on the bonds as they become due:
2016 2036
2029
2.000%-
5.000%2016 2036
29,720,000
46,795,000
2016 Storm Water Bond
(Authorized: $44,500,000)27,801,000 2036
COIT Lease Rental Revenue
Refunding Bond, Series 2014A
(Hazel Dell)
1,126,000
2016
Year of
14,220,000
10,102,000
2014
Year of Original Amount
Issue Maturity
8,785,000 5.270%
780,000
10,337,000
Outstanding
2017
2018
2016
2011
Taxable Lease Rental Bonds,
Series 2017C-1
2037
2006
2027
29,720,000 2041
815,000
24,000,000
3.000%-
5.000%
2018 9,380,000 -
-
24,000,000
40,625,000
30,720,000 2.000%-
5.000%
2.360% -
2.360%2017 2030 23,180,000 22,585,000
2.320%
3.000%-
4.000%
2.000%-
5.000%1,383,000
139,872,000**
1,211,000
2022 7,180,000
2016
1,286,000
COIT Lease Rental Revenue
Refunding Bond, Series 2014B
(Northwest Clay Road)
1.576%-
3.762%2016
2027
In the year ended December 31, 2018, the total of payments on the bonds listed immediately above was 21.8% of annual
county option income tax revenue.
General Obligation Bonds,
Series 2016L
General Obligation Bonds,
Series 2016M
Lease Rental Bonds, Series
2016A (Public Infrastructure
Projects)
Lease Rental Bonds, Series
2016B (Economic Development
Projects)
Lease Rental Bonds, Series
2016C (Energy Center Project)
Taxable Special Program Bonds,
Series 2016
COIT Lease Rental Revenue
Refunding Bonds, Series 2006
City Center
COIT Refunding Bonds of 2011
2.000%-
5.000%
2014
Amount
138,937,000
LIT Lease Rental Revenue
Refunding Bonds, Series 2017
2,925,000
Interest Rate
Tax-Exempt Lease Rental
Bonds, Series 2017B-1
3.000% -
5.000%2017 2037 32,495,000 32,495,000
Tax-Exempt Lease Rental
Bonds, Series 2017B-2
3.200% -
3.200%
2.006% -
3.200%2017
2.000%-
5.000%2016 2035 15,164,000
60
Loft A Private Placement 2011
Restated Secondary Village #1
Total bond principal and contract purchases
Capital Leases
Compensated Absences
Total bond principal, contract purchases, capital leases, and compensated absences.
Bond premium
Business-type activities long-term debt:
Bond Premium/ Discount
Total bonded debt, including amount due in one year
Total business-type activities bonds, capital leases, and compensated absences.
Total City bonds, capital leases, and compensated absences.
N/A
5,894,000
21,625,000
N/A
2028
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:
Waterworks Special Program
Bonds, Series 2016
135,831,887
0.420%
2025
N/A
20242004
In the year ended December 31, 2018, the total of payments on the bonds listed immediately above was 5.8% of annual
incremental tax revenue.
2034
685,065,725
Year of Original Amount
2013
Taxable Lease Rental Bonds,
Series 2017C-2
Midtown South Taxable Lease
Rental Bonds, Series 2017A
Issue
Taxable Tax Increment Revenue
Bonds, Series 2004A
LIBOR
Interest Rate
2.100% -
3.750%2017 2025
2017
4,150,000
Interest Rate
Year of
Compensated Absences
2032
2005 2026
2.000%-
3.250%
3.000%-
5.000%
Amount Outstanding
Original Amount
Issue Maturity
7,405,000
889,513,597$
Issue Maturity Amount
2009
Year of
2030
3.400%-
7.650%N/A
16,600,000 16,600,000
1.973% -
3.864%
Contract purchases of capital assets:
2012
Original
5,065,000$
2017 2037 13,000,000 12,488,000
4.130%-
5.790%
2013
LIBOR
9,630,000 7,670,000
Amount
Outstanding
4.320%-
4.610%
136,821,165
12,645,000
2011
6.650%
2036
Taxable Economic Development
Lease Rental Revenue Bonds,
Series 2018A (Midtown West
2.500% -
5.000%
8,700,000
Year of
N/AN/A
Interest Rate
2042 7,405,000
9,500,000
1.800%-
3.700%
3,498,420
Water Utility Junior Waterwork
Revenue Bond of 2012
469,456
2005-2018
N/A
519,822
Maturity Amount Outstanding
Capital Leases
Year of
4,500,000
2028
2,333,293
7,637,383
2033
N/A
Sewer Utility 2005 Revenue
Bonds Refinance
Sewer Utility 2009 SRF
Sewer Utility 2012 Revenue
Bonds
Water Utility 2008 Capital
Appreciation Bonds
11,000,000$
53,735,000
20,547,740
2022
N/A
Total governmental activities bonds, contract
purchases, capital leases, and compensated absences.
11,040,000
2018 2043 12,645,000
694,021,503
481,943
51,595,000
Bonds issued in order to acquire capital assets, for which the City has pledged its
sewer or water user fee revenue up to the amount needed to satisfy the principal
and interest on the bonds for the term of the bonds:
Year of
1,318,395
752,692,432$
2008
20122.000%-
4.000%
36,848,524
17,155,000
58,670,929
2016
N/A
Junior Waterworks Revenue
Refunding Bonds of 2017
61
Streets and infrastructure
Economic development
Total
2. Debt Service Requirements to Maturity
Premium/Discount
Year Ended
December 31 Principal Interest
283,213,253
10,614,150$
2024 - 2028
2023 6,596,678 5,836,262
Business-Type Activities:
58,069,756
28,399,431
12,334,313$
10,571,808
27,754,511
29,058,427 26,943,897
2029 - 2033 49,055,881 8,241,035 57,296,916
Total 135,349,944 64,470,111$ 199,820,055$
2019
Excess of the
present value of
future payments
over the unpaid
principal of capital
appreciation bonds
2034 - 2038 6,904,000
6,051,144 11,035,202
57,835,345
481,943
77,624,829
56,002,324
December 31
Year Ended
Governmental Activities:
2019
2024 - 2028
2029 - 2033
2034 - 2038
25,811,089
Principal
101,475,356
22,827,837
685,065,725$
Bonds and contract
purchases
30,864,417 26,970,928
Interest
28,764,094$
2039 - 2043
135,831,887$ Bonded debt
2023
30,315,245
In the year ended December 31, 2018, the total of payments on the bonds listed immediately above was 46.1% of annual
water user fee revenue and 17.9% of annual sewer user fee revenue.
2020
6,099,289$
503,346 7,407,346
6,010,466 5,930,049 11,940,515
51,813,740
10,689,086
311,654,984$ 973,892,872$
Total
54,027,565
14,430,586
245,213,565
153,196,586
774,086
Total
23,780,551$
9,915,000
22,906,121$
2020
2021
2022
12,432,940
2021 5,470,260 5,997,897 11,468,157
2022
4,984,058
28,728,881
191,186,000
138,766,000
662,237,888
Total
57,128,312
4,514,861$
181,737,897
52,544,645$
The City has pledged up to $1,115,000 of county option income tax revenue, payable in the event an overlapping unit of
government is unable to service certain debt. The City does not expect to be called upon to make these payments.
The City expects the pledged revenue will be more than sufficient to satisfy the principal and interest on the obligations
listed above. This revenue is not pledged to satisfy any other obligations, nor is it committed for operating or other
necessary expenditures.
Interest on long term debt has been charged as a direct expense in certain instances in which borrowing has been
essential to the creation or continued existence of projects, as follows:
62
3. Capital Leases
4. Operating Leases
5. Other Commitments
Total assigned from governmental fund balances:
2020
TotalInterestPrincipalDecember 31
Year Ended
Capital Leases:
542,488$
The City owns a certain office and theater building and is lessor to certain private tenants. The cost of the office and theater building
is $20,500,000. Depreciation expense for the year ended 2018 was $410,000 and book value for the year ended 2018 was
$18,040,000.
166,764
Various claims and lawsuits are pending against the City. At December 31, 2018, the administration believes the amount payable for
claims and judgments, if any, is not material in relation to the basic financial statements taken as a whole.
Certain City officials are empowered to issue purchase orders and enter into contracts that constitute contractual obligations of the
City. These encumbrances, treated as assigned fund balance as of December 31, 2018, are as follows.
3,014,336$
27,077 346,052
2024 - 2028 494,478 38,946 533,424
Capital Leases:
Total 7,637,383$ 530,408$ 8,167,791$
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, 2018, the City had assets with an original cost of $13,373,664 and accumulated depreciation of
$4,698,655 financed through capital leases.
These commitments, if any, are included in, and do not exceed, the committed or restricted fund balances of the respective funds.
Construction commitments for the Water and Sewer Enterprise Funds were less than $100,000.
Interest Total
2,274,097$ 190,242$
1,430 71,876
87,137
Total
173,870
1,641,258
2022
138,861 2,170,137
964,436 48,145 1,012,581
2023
519,822$ 22,666$
122,872 3,698 119,174 2021
173,870 7,106
2,031,276
318,975
Principal
2020
2,464,339$ 2019
2019 163,438$ 10,432$
The Water and Sewer Utilities entered into various capital leases for certain equipment. As of December 31, 2018, the Utilities had
assets with an original cost of $1,170,176 and accumulated depreciation of $502,942 financed through capital leases.
1,554,121
Year Ended
December 31
2022 70,446
2021
63
6. Nominal Debt Used as Tax Incentives
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 Installment Purchase Contract (Monon & Main)
2017 Economic Development Revenue Bonds (Edward Rose Development Carmel, LLC, Project
2015 Economic Development Revenue Bonds (KG Main, LLC, Project)
2011A Senior Economic Development Revenue Bonds (Arts District Lots & Shoppes)
2011 Taxable Economic Development Revenue Bonds (Meridian and Main)
2011 Taxable Economic Development Revenue Bonds (116th Street Centre Project)
2011 B Subordinate Economic Development Revenue Bonds (Arts District Shops and Lofts)
2006 B Taxable Economic Development Revenue Bonds (Buckingham-Gramercy Project)
7. Schedule of Outstanding Principal on Advance Refunded Debt
Outstanding Amount
Outstanding Bonds
E. Risk Management; Claims
Changes in the balance of claim liabilities are as follows:
Unpaid claims, beginning of fiscal year
Incurred claims and changes in estimates
Claim payments
Unpaid claims, end of fiscal year
2,300,000
13,920,000
56,360,000
$ 130,195,000
Local Income Tax Lease Rental Revenue Refunding Bonds, Series 2017
Lease Rental Revenue Multipurpose Bonds, Series 2012A
Lease Rental Revenue Multipurpose Bonds, Series 2012B (Taxable)
Carmel Bond Bank Lease Rental Refunding Bonds, Series 2016C
Carmel Bond Bank Special Program Bonds, Series 2016
The City has entered into certain transactions for the purpose of providing tax incentives to private firms to redevelop designated
property meeting certain criteria. Although the incentives take the legal form of debt, neither the City nor any other entity is ultimately
liable. For the designated property, the private firm is the property owner, the buyer of the bonds, and the sole taxpayer. There is no
recourse to the City. If the private firm makes improvements on the property, incremental property tax revenue is generated, and some
portion of that revenue is pledged to the payment of the bonds. In effect, the private firm is reimbursed for a portion of the incremental
property tax it paid. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
510,271$
1,376,256$
2008B Jr. Water Bonds
2017
Amounts are paid into the Fund by user departments. Funds are available for claims, claim reserves, and administrative costs of the
program. Interfund transfers into the Fund are based upon the actual claims incurred of each department's current year eligible
employees. The basis for estimating unpaid claims, including specific incremental claim adjustment expenditures, if any, is a study of
actual claims experience in recent past periods.
The City has chosen to establish a Self Insurance Fund to mitigate the risk of loss related to employee health claims. An excess
liability policy through commercial insurance covers individual claims in excess of $175,000 per year and provides an aggregate
commercial insurance coverage of amounts over $13,427,500. There were no significant reductions in insurance coverages from prior
years. Settled claims resulting from this risk did not exceed aggregate commercial insurance coverage in the three years ended
December 31, 2018.
The City may be exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions;
job-related illnesses or injuries to employees; medical benefits to employees, retirees, and dependents; and natural disasters. The City
administration believes these risks are adequately covered by the purchase of insurance. Settlements in excess of insurance, if any,
have not been material in the past three years.
10,523,915
10,555,027
2018
479,159$
23,425,000$
34,190,000
Outstanding
Refunded Bonds Bonds Refunded Through
9,174,919
2010C COPs
10,072,016
479,159$
1/1/2031
1/15/2035
1/15/2035
7/15/2035
6/1/2026
2010 COIT LR Bonds
2010A COPS
2010B COPS
64
F. Pension Plans
1. Single Employer Defined Pension Plan
Plan Description
The plans are closed to new entrants.
-
Current active employees
Total Plan Members
-
14
-
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:
Benefits provided:
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.
The plans also offer a disability benefit whereby members of the police and fire departments who have suffered or contracted a mental
or physical disease or disability that renders the member unable to perform the essential function of the department will receive the
greater of 55% of first-class salary or the pension benefit the member would have received if the member had retired on the disability
date.
The plans also provide a death benefit for a surviving spouse to receive the greater of
1. 30% of the monthly pay of a first-class patrol officer, or
Membership in the Plans as of the most recent actuarial valuation was comprised of the following:
Police
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.
Fire
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;
Retirees and beneficiaries currently receiving benefits 14
Terminated employees entitled to but not yet receiving benefits
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.
15
15
-
As established by Indiana law, the boards for the police officers' and firefighters' plans consist of eight and five members,
respectively. On each board, the mayor of the City and the chief of each department serve ex officio. On the police board, the clerk-
treasurer of the City also serves ex officio. The remaining members are elected by the active members, police and firefighters,
respectively. At least one member of each board must be a retired beneficiary of the respective plan.
2. 55% of the benefit the retiree was receiving.
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.
65
Contributions:
Net Pension Liability and Pension Expense:
Assumptions and Other Inputs
3.62% Police Officers; 3.65% Firefighters for 2017
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, 2018, the State of Indiana contributed $564,928 to
the '25 Police Officers' Plan and $584,282 to the '37 Firefighters' Plan on behalf of the City during the fiscal year.
Investment Earnings Rate The plans maintain no investments and have no expectation of future earnings
from investments. The plans' assets are cash balances available for incidental
expenses. These are managed in the same way as other City deposits and may earn
negligible returns from interest-bearing accounts.
Measurement Date
SOA published mortality table: RP-2014 adjusted to 2006 blue-collar mortality
table. Separate tables for male and female participants. Separate tables for active
employees, healthy annuitants, and disabled participants.
December 31, 2018–Police Officers' members' census data as of January 1, 2019,
and Firefighters member census data as of January 1, 2019, was used in the
valuation.
3.54% Police Officers; 3.58% Firefighters for 2018
Cost of Living Increase:
Discount Rate
Mortality and Mortality Improvement
Valuation Date
December 31, 2018
SOA published mortality improvement scale: MP-2018 (previously MP-2015)
generational, which projects mortality improvement indefinitely beginning with
high initial improvement (based on recent experience) and tapering to a lower
level of improvement for long-term mortality projections.
2.50%1925 or 1937 Plan
The City's net pension liability of $9,762,204 for the '25 Police Officers' Plan and $10,595,746 for the '37 Firefighters' Plan was
measured as of December 31, 2018, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of December 31, 2018. For the year ended December 31, 2018, the City recognized pension expense of
$355,186 for the '25 Police Plan and $323,700 for the '37 Firefighters Plan.
Active members of the 1925 Police Officers' and 1937 Firefighters' plans had the option of participating in the deferred retirement
option plan (DROP). Under that plan, an active member could declare in advance a future retirement date. From the time of that
declaration, contributions on behalf of that member would have been segregated into a separate fund for his benefit. Upon retirement,
the member would have several options with regard to taking the balance in this fund in the form of a lump sum or future payments.
The member's regular retirement benefits would be paid as if he had retired on his declaration date. The City has no participants in
DROP.
1977 Plan Converted 2.50%
66
Changes in the Net Pension Liability:
Changes for the year:
Fiduciary net position as a percentage of total pension liability
'25 Police Officers' Plan
Differences between expected and actual experience
Current amortization (deduct)
Fiscal Year End
Thereafter
9,253$
(582,141)
338,525
Net Pension
Liability
827
-
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:
2019 3,883$
2020
(337,280)
'25 Police Officers' Plan
131,361$
Effect of economic/demographic gains and losses
10,119,548$
Plan Fiduciary
Net Position
564,928
-
(564,928)
-
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
354,913
-
338,525
Interest on total pension liability
-
(582,141)
Balances as of December 31, 2017
(100)
(1,203)
Service cost
Employer contributions
Benefit payments
Administrative expenses
Net investment income
Increase (Decrease)
(337,280)
-
354,913
9,893,565$
-
Total Pension
Liability
1.33%
-
-
-
Balances as of December 31, 2018 9,762,204$
-
-
1,203
9,972,077$
Member contributions
-
-
2,817
2021 1,726
2022
100
Effect of plan changes
- -
147,471$
2023 -
-
Deferred Outflows
of Resources
Deferred Inflows of
Resources
9,001$ -$
338,525 -
(342,408) (337,280)
Investments 4,135 -
9,253$ -$
Changes in assumptions - 337,280
Balances as of December 31, 2017
Balances as of December 31, 2018
At December 31, 2018, the City reported a net pension liability of $9,762,204 for the '25 Police Officers' Plan.
For the year ended December 31, 2018, the City recognized pension expense of $355,186, which included net amortization of
deferred amounts from investment gains and/or losses. At December 31, 2018, the City reported deferred outflows of resources
and deferred inflows of resources related to the '25 Police Officers' Plan from the following sources:
Effect of assumptions changes or inputs
67
Changes in the Net Pension Liability:
Changes for the year:
Effect of economic/demographic gains and losses
Fiduciary net position as a percentage of total pension liability
'37 Firefighters' Plan
Differences between expected and actual experience
Current amortization (deduct)
Fiscal Year End
Thereafter
1,803$
(351,553)
128$
-$
Net Pension
Liability
Balances as of December 31, 2017
Balances as of December 31, 2018 10,601,151$
-
Plan Fiduciary
Net Position
Member contributions
385,277
Effect of plan changes - - -
289,272
5,405$
Increase (Decrease)
Total Pension
Liability
'37 Firefighters' Plan
2023
10,883,369$ 26,027$ 10,857,342$
Service cost - - -
Interest on total pension liability
(605,214)
0.05%
-
-
-
305$
310
10,595,746$
- 584,282 (584,282)
2019
2020
2021
2022
559$
-
385,277
-
Net investment income
-$
811$
(351,553)
(310)
(605,214)
Employer contributions
- (351,553) Effect of assumptions changes or inputs
Changes in assumptions - 351,553
Investments 640 -
289,272
-
Deferred Outflows
of Resources
Deferred Inflows of
Resources
1,974$ -$
289,272 -
(290,083)
1,803$ -$
Balances as of December 31, 2017
Balances as of December 31, 2018
Deferred inflows of resources resulting from the differences between projected and actual investment earnings on Plan
investments are amortized over a 5-year period. Amounts reported as deferred outflows of resources and deferred inflows of
resources will be recognized in pension expense as follows:
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
At December 31, 2018, the City reported a net pension liability of $10,595,746 for the '37 Firefighters' Plan.
For the year ended December 31, 2018, the City recognized pension expense of $323,700, which included net amortization of
deferred amounts from investment gains and/or losses. At December 31, 2018, the City reported deferred outflows of resources
and deferred inflows of resources related to the '37 Firefighters' Plan from the following sources:
Benefit payments
68
Sensitivity of Net Pension Liability to Changes in the Discount Rate:
Participation by State of Indiana
ASSETS:
Cash and investments
Receivable from State of Indiana
Total assets
LIABILITIES: payroll withholdings
NET POSITION: restricted for pensions
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION - PENSION FUNDS
ADDITIONS:
State of Indiana contributions
Investment income
Miscellaneous revenue
Total additions
DEDUCTIONS:
Benefits
Other services and charges
Total deductions
NET INCREASE (DECREASE) IN NET POSITION
NET POSITION: beginning
NET POSITION: ending - restricted for pensions
$ 11,800,188
1% Increase
$ 10,839,139
Current
Discount Rate
STATEMENT OF FIDUCIARY NET POSITION - PENSION FUNDS
$ 10,595,746
1% Decrease
$ 9,579,909 '37 Firefighters' Plan
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:
607,675
(20,622)
26,027
$ 5,405
$ 131,361
48,777
180,138
48,777
$ 131,361
'25 Police
Pension Trust
$ 564,928
1,203
2,246
568,377
582,141
2,346
584,487
(16,110)
147,471
$ 9,762,204
For the Fiscal Year Ended December 31, 2018
$ 131,361
'25 Police Officers' Plan $ 8,848,806
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, 2018. The amounts were $564,928 and $584,282, respectively.
The State of Indiana is not obligated to make such payments in the future, and the City remains liable for future pension expenditures.
'25 Police
Pension Trust
December 31, 2018
'37 Fire Pension
Trust Fund
$ 5,405
50,662
56,067
50,662
$ 5,405
'37 Fire Pension
Trust Fund
$ 584,282
310
2,461
587,053
607,675
-
69
2. Cost-Sharing Multiple-Employer Defined Benefit Pension Plan
Public Employees' Retirement Fund
Plan Description:
Pension Plan Report and Fiduciary Net Position:
Retirement Benefits:
There are two aspects to the PERF Hybrid Plan defined benefit structure. The first portion is the monthly defined benefit pension that
is funded by the employer. The second portion of the PERF Hybrid Plan benefit structure is the annuity savings account (ASA) that
supplements the defined benefit at retirement.
Indianapolis, Indiana 46204
Investments in the members' ASA are individually directed and controlled by plan participants who direct the investment of their
account balances among eight investment options, with varying degrees of risk and return potential. All contributions made to a
member's account are invested as a combined total according to the member's investment elections. Members may make changes to
their investment directions daily, and investments are reported at fair value.
Defined Benefit Pension: The PERF Hybrid Plan retirement benefit consists of the sum of a defined pension benefit provided by
employer contributions plus the amount credited to the member's ASA. Pension benefits (non ASA) vest after 10 years of creditable
service. The vesting period is eight years for certain elected officials. Members are immediately vested in their ASA. At retirement, a
member may choose to receive a lump sum payment of the amount credited to the member's ASA, receive the amount as an annuity,
or leave the contributions invested with INPRS. Vested PERF members leaving a covered position, who wait 30 days after
termination, may withdraw their ASA and will not forfeit creditable service or a full retirement benefit. However, if a member is
eligible for a full retirement at the time of the withdrawal request, he/she will have to begin drawing his/her pension benefit in order to
withdraw the ASA. A non-vested member who terminates employment prior to retirement may withdraw his/her ASA after 30 days,
but by doing so, forfeits his/her creditable service. A member who returns to covered service and works no less than six months in a
covered position may reclaim his/her forfeited creditable service.
Members are required to participate in the ASA. The ASA consists of the member's contributions, set by statute at three percent of
compensation as defined by IC 5-10.2-3-2 for PERF, plus the interest/earnings or losses credited to the member's account. The
employer may elect to make the contributions on behalf of the member. In addition, under certain conditions, members may elect to
make additional voluntary contributions of up to 10 percent of their compensation into their ASA. A member's contributions and
interest credits belong to the member and do not belong to the State or political subdivision.
The PERF ASA Only Plan is funded by an employer and a member for the use of the member, or the member's beneficiaries or
survivors, after the member's retirement. The PERF ASA Only Plan members are employees who are in a position eligible for
membership in the PERF Hybrid Plan and who elect to become members of the PERF ASA Only Plan. The PERF ASA Only Plan
membership does not include individuals who: (1) before March 1, 2013, were members of the PERF Hybrid Plan or (2) on or after
March 1, 2013, do not elect to participate in the PERF ASA Only Plan.
Indiana Public Retirement System
The City contributes to the Public Employees' Retirement Fund (PERF), which is administered by the Indiana Public Retirement
System (INPRS). It is a cost sharing, multiple-employer defined benefit plan. PERF provides retirement, disability, and survivor
benefits to full-time employees of the State not covered by another plan, those political subdivisions that elect to participate in the
retirement plan, including the City of Carmel, and certain INPRS employees. There are two tiers to the PERF Plan. The first is the
Public Employees' Defined Benefit Plan (PERF Hybrid Plan), and the second is the Public Employees' Annuity Savings Account Only
Plan (PERF ASA Only Plan).
One North Capitol Avenue, Suite 001
The pension plan's fiduciary net position has been determined on the same basis of accounting used by the pension plan. Detailed
information about the pension plan's fiduciary net position is available in the separately issued INPRS financial report, which is
available online at http://www.inprs.in.gov or may be obtained by contacting:
Ph. (844) GO-INPRS
70
City
Park
Year Ended
December 31
2018
The following represents the City's annual required contributions:
351,714$ 100%
Required
Contribution
Percentage
Contributed
2,214,473$ 100%
2018
A member who has reached age 65 and has at least 10 years of creditable service is eligible for normal retirement and, as such, is
entitled to 100 percent of the pension benefit component. This annual pension benefit is equal to 1.1 percent times the average annual
compensation times the number of years of creditable service. The average annual compensation in this calculation uses the highest 20
calendar quarters of salary in a covered position. All 20 calendar quarters do not need to be continuous, but they must be in groups of
four consecutive calendar quarters. The same calendar quarter may not be included in two different groups. For PERF members who
serve as an elected official, the highest one year (total of four consecutive quarters) of annual compensation is used. Member
contributions paid by the employer on behalf of the member and severance pay up to $2,000 are included as part of the member's annual
compensation.
A member who has reached age 60 and has at least 15 years of creditable service is eligible for normal retirement and, as such, is
entitled to 100 percent of the pension benefit. A member who is at least 55 years old and whose age plus number of years of creditable
service is a least 85 is entitled to 100 percent of the benefits as described above.
A member who has reached at least age 50 and has at least 15 years of creditable service is eligible for early retirement with a reduced
pension. A member retiring early receives a percentage of the normal annual pension benefit. The percentage of the pension benefit at
retirement remains the same for the member's lifetime. For age 59, the early retirement percentage of the normal annual pension benefit
is 89 percent. This amount is reduced five (5) percentage points per year (e.g., age 58 is 84 percent) to age 50 being 44 percent.
The PERF Hybrid Plan also provides disability and survivor benefits. A member who has at least five years of creditable service and
becomes disabled while in active service, on FMLA leave, receiving worker's compensation benefits, or receiving employer-provided
disability insurance benefits may retire for the duration of the disability, if the member has qualified for Social Security disability
benefits and has furnished proof of the qualification. The disability benefit is calculated the same as that of the normal retirement
without reduction for early retirement. The minimum benefit is $180 per month, or the actuarial equivalent.
Upon the death in service of a member with 15 or more years of creditable service as of January 1, 2007, a survivor benefit may be paid
to the surviving spouse to whom the member had been married for two (2) or more years, or surviving dependent children under the age
of 18. This payment is equal to the benefit that would have been payable to a beneficiary if the member had retired at age 50 or at death,
whichever is later, under an effective election of the joint and survivor option available for retirement benefits. A surviving spouse or
surviving dependent children are also entitled to a survivor benefit upon the death in service after January 1, 2007, of a member who
was at least 65 years of age and with 10 to 14 years of creditable service.
Funding Policy:
Members are obligated by statute to make contributions to the PERF Hybrid Plan or the PERF ASA Only Plan. Any political
subdivision that elects to participate in the PERF Hybrid Plan is obligated by statute to make contributions to the plan. The required
contributions are determined by the INPRS Board of Trustees based on actuarial investigation and valuation. The funding policy
provides for periodic employer contributions at actuarially determined rates that, expressed as percentages of annual covered payroll, are
sufficient to fund the pension benefits when they become due. As PERF is a cost-sharing plan, all risks and costs, including benefit
costs, are shared proportionately by the participating employers.
The PERF Hybrid Plan or the PERF ASA Only Plan members contribute three percent of covered payroll to their ASA, which is not
used to fund the defined benefit pension for the PERF Hybrid Plan. For the PERF Hybrid Plan, the employer may elect to make the
contributions on behalf of the member. The employer shall pay the member's contributions on behalf of the member for the PERF ASA
Only Plan. In addition, members of the PERF Hybrid Plan (and the PERF ASA Only Plan) may elect to make additional voluntary
contributions, under certain criteria, of up to 10 percent of their compensation into their ASA.
PERF-covered employees are required to contribute 3% of their compensation to the Fund, and the City is required to contribute
amounts, which are actuarially determined, sufficient to fund the retirement benefits. The City contributes the 3% employee's portion. In
addition, some employees elect to make additional voluntary contributions to their PERF ASA Only Plans.
71
Significant Actuarial Assumptions:
Type of Plan The Public Employees’ Retirement Fund is a cost-sharing multipleemployer
plan for GASB accounting purposes.
Measurement Date
1.00%
2.75%
3.25%
3.75%
4.25%
0.25%
0.50%
2.25%Inflation
Future Salary Increases 2.50% - 4.25% based on age
As of June 30, 2017 1.0% compounded annually, beginning January 1, 2020. In lieu of a COLA,
members in pay were provided a 13th check on October 1, 2017 and October 1,
2018, which is reflected in the valuation.
Mortality Assumption
(Disabled) RP-2014 (with MP-2014 improvement removed) Disability Mortality Table, with
future mortality improvement projected generationally using future mortality
improvement inherent in the Social Security Administration's 2014 Trustee report.
Age
Experience Study
In lieu of a COLA on January 1, 2019, members in pay were provided a 13th
check on October 1, 2018. It is assumed a 13th check would continue for the 2020
and 2021 fiscal years. Thereafter, the following COLAs, compounded annually,
were assumed:
0.4% beginning on January 1, 2022
0.5% beginning on January 1, 2034
0.6% beginning on January 1, 2039
Discount Rate 6.75%
Total Individual
Salary Growth
>=61
56-60
Productivity,
Merit, and
Promotion
Assets June 30, 2018
Valuation Date:
June 30, 2018
Liabilities June 30, 2017– the TPL as of June 30, 2018, awas determined based on an
actuarial valuation prepared as of June 30, 2017 rolled forward one year to June
30, 2018 using the following key actuarial assumptions and other inputs, such as
benefit accruals and actual benefit payments during that time period.
Mortality Assumption
(Healthy) RP-2014 (with MP-2014 improvement removed) Total Data Set Mortality Table,
with future mortality improvement projected generationally using future mortality
improvement inherent in the Social Security Administration's 2014 Trustee report.
The most recent comprehensive experience study was completed in April 2015
and was based on member experience between June 30, 2010 and June 30, 2014.
The demographic assumptions were updated as needed for the June 30, 2015
actuarial valuation based on the results of the study.
Inflation
46-55
31-45 1.50%
2.00%
2.25%
2.25%
2.25%
2.25%
2.25%
Cost of Living Increase:
As of June 30, 2018
<31
2.50%
The total pension liability is determined by INPRS actuaries in accordance with GASB No. 67 and No. 68, as part of their annual
actuarial valuation for each defined benefit retirement plan. Actuarial valuations of an ongoing plan involve estimates of the value of
reported amounts (e.g., salaries, credited service) and assumptions about the probability of occurrence of events far into the future
(e.g., mortality, disabilities, retirements, employment terminations). Actuarially determined amounts are subject to continual review
and potential modifications, as actual results are compared with past expectations, and new estimates are made about the future. Key
methods and assumptions used in calculating the total pension liability in the latest actuarial valuations are presented below:
72
Other Assumptions:
Data Assumptions:
•
• There were no method changes for the June 30, 2018, valuation.
13,350,728$
Form of payment 100% of members are assumed to elect a single life annuity with a five-year
certain period (Option 10).
Pay increase timing Beginning of (fiscal) year. Payroll amounts stated in the valuation data are
amounts projected to be paid during the current year.
Marital status:
Percent married 75% of male members and 60% of female members are assumed to be married
and or to have a dependent beneficiary.
Spouse's age Male members are assumed to be three (3) years older than their spouses and
female members are assumed to be two (2) years younger than their spouses.
Decrement timing Decrements are assumed to occur at the beginning of the year.
Benefit commencement timing:
Active members If eligible for a reduced early retirement benefit upon termination from
employment, 33% commence immediately and 67% defer to earliest unreduced
retirement age.
If eligible for an unreduced retirement benefit upon termination from employment,
100% commence immediately.
Terminated vested members
Net pension liability is sensitive to changes in the discount rate. To illustrate the potential impact, the following table presents the net
pension liability of each defined benefit pension plan calculated using the discount rate of 6.75 percent, as well as what each plan's net
pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%), or one percentage
point higher (7.75%) than the current rate:
2018 Park 3,294,592$ 2,092,920$ 1,090,856$
5.75%
1% Increase
6.75%7.75%
Current Rate
6,958,566$
1% Decrease
The COLA assumption was changed due to passage of Senate Enrolled Act No. 373. In lieu of a 1% COLA
occurring beginning on January 1, 2020, it is now assumed that the COLA will be replaced by a 13th check for
2020 and 2021. The COLA assumption thereafter, would be 0.4% beginning on January 1, 2022, changing to
0.5% beginning on January 1, 2034, and ultimately 0.6% beginning on January 1, 2039.
Total pension liability for each defined benefit pension plan was calculated using the discount rate of 6.75 percent. The projection of
cash flows used to determine the discount rate assumed the contributions from employers, and, where applicable, from the members,
would at the minimum be made at the actuarially determined required rates computed in accordance with the current funding policy
adopted by the INPRS Board, and contributions required by the State (the non-employer contributing entity) would be made as
stipulated by State statute. Projected inflows from investment earnings were calculated using the long-term assumed investment rate of
return (6.75 percent). Based on those assumptions, each defined benefit pension plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members; therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefits to determine the total pension liability for each plan.
2018 City 21,016,191$
100% defer to earliest unreduced retirement age. If currently eligible for an
unreduced retirement benefit, 100% commence immediately.
Changes in actuarial assumptions:
Changes in actuarial methods:
73
Pension Plan Fiduciary Net Position:
City
4.4%
2.7%
1,877,403 2,229,293
Pension contributions subsequent to measurement date
14.0%5.4%
22.0%
Private equity
Changes in proportion and differences between City
contributions and proportionate share of contributions
2,143,645
1,275,597 84,737
Total that will be recognized in pension expense (income) based
on the table below
Total
12.0%5.2%
Fixed-income – ex inflation-linked
Deferred Inflows of
Resources
Differences between expected and actual experience 174,601$
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
At December 31, 2018, the City reported a liability of $13,350,728 for its proportionate share of the City net pension liability and
$2,092,920 for its proportionate share of the Park net pension liability. The City's proportionate share of the net pension liability
was based on the City's wages as a proportion of total wages for the PERF Hybrid Plan. The proportionate share used at the June
30, 2018 measurement date was 0.0039301 for the City plan and 0.0006161 for the Park plan.
20.0% 2.2%
Fixed-income – inflation-linked 7.0%
Risk parity
Geometric Basis
8.0%
3,457,217$ 2,229,293$
10.0%
-
Real estate 7.0%6.5%
Asset Class
Long-Term Expected
Rate of Return
The long-term return expectation for the defined benefit retirement plan has been determined by using a building-block approach and
assumes a time horizon, as defined in the INPRS Investment Policy Statement. A forecasted rate of inflation serves as the baseline for
the return expectation. Various real return premiums over the baseline inflation rate have been established for each asset class. The
long-term expected nominal rate of return has been determined by calculating a weighted average of the expected real return
premiums for each asset class, adding the projected inflation rate, and adding the expected return from rebalancing uncorrelated asset
classes.
8.0%
Commodities
Target Asset
Allocation
Public equity
Absolute return
Deferred Outflows
of Resources
1,579,814
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.
911$
Net difference between projected and actual earnings on pension
plan investments 395,396 -
Changes in assumptions 31,809
For the year ended December 31, 2018, the City recognized pension expense of $2,586,126 for the City plan and $342,158 for the
park plan. Pension expense included net amortization of deferred amounts from changes in proportion and differences between
employer contributions and proportionate share of contributions. At December 31, 2018, the City reported deferred outflows of
resources and deferred inflows of resources related to the PERF Hybrid Plan from the following sources:
2.3%
74
Park
Plan Description:
Funding Policy:
Retirement Benefits:
381,277
Pension contributions subsequent to measurement date 152,915
2021
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Differences between expected and actual experience
-
Total 282,229$ 381,277$
2020 (138,314)
(601,872)
-
Deferred outflows of resources resulting from employer contributions subsequent to the June 30, 2018, measurement date are
recognized as a reduction of net pension liability in the year ending December 31, 2018. Deferred inflows of resources resulting from
the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. A change in
an employer's proportionate share represents the change as of the current year measurement date versus the prior year measurement
date, and is amortized over the average expected remaining service lives of the plan. The difference between an employer's
contributions and the employer's proportionate share of the collective contributions is amortized over the average expected remaining
service lives of the plan. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in
pension expense as follows:
2019
A member vests after 20 years of service. If the member retires at or after the age of 52 with 20 years of service, the benefit is equal to
50 percent of the salary of a first-class officer, as reported by the employer in the year the 1977 Fund member ended service plus one
percent of that salary for each six months of active service over 20 years to a maximum of 12 years. At age 50 and with 20 years of
service, a member may elect to receive a reduced benefit by a factor established by the fund's actuary.
Changes in proportion and differences between City
contributions and proportionate share of contributions 34,973 45,087
Total that will be recognized in pension expense (income) based
on the table below 129,314
2022 (236,446)
2023
27,371$
Total (351,890)$
Thereafter -
1977 Police Officers' and Firefighters' Pension and Disability Fund
The 1977 Police Officers' and Firefighters' Pension and Disability Fund is a cost-sharing multiple-employer defined benefit
pension plan administered by the Indiana Public Retirement System (INPRS) for all police officers and firefighters hired after
April 30, 1977.
The funding policy for the 1977 Fund requires remittances of member and employer contributions based on percentages of the
salary of a first-class officer or firefighter and not on actual payroll. The employer contribution rate is actuarially determined. The
required contributions are determined and may be amended by the INPRS Board of Trustees. Since the 1977 Fund is a cost-
sharing pension plan, all risks and costs, including benefit costs, are shared proportionately by the participating employers. For
the fiscal year 2018, 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.
143$
Net difference between projected and actual earnings on pension
plan investments 61,984 -
Changes in assumptions 4,986 336,047
624,742$
Year Ending December 31,Amount
City
12,417$
(80,873)
(146,440)
(37,067)
-
-
(251,963)$
Amount
Park
75
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 costsharing multiple-employer
plan for GASB accounting purposes.
Measurement Date June 30, 2018
Valuation Date June 30, 2018
Assets: June 30, 2018
Liabilities:
Inflation
Future Salary Increases
Cost-of-Living Increases As of June 30, 2018:
As of June 30, 2017:
Mortality Assumption
(Healthy)
Mortality Assumption
(Disabled)
Experience Study
June 30, 2017 – The TPL as of June 30, 2018 was determined based on an actuarial valuation prepared
as of June 30, 2017 rolled forward one year to June 30, 2018, using the following key actuarial
assumptions and other inputs, such as benefit accruals and actual benefit payments during that time
period.
2.50%
2.25%
2.0% compounded annually, beginning July 1, 2019. Actual COLA increases at July 1, 2017 (2.5%)
and July 1, 2018 (2.2%) are reflected in the valuation.
2.0% compounded annually, beginning July 1, 2018. Actual COLA increases at July 1, 2016 (1.1%)
and July 1, 2017 (2.5%) are reflected in the valuation.
RP-2014 (with MP-2014 improvement removed) Blue Collar mortality tables, with future mortality
improvement projected generationally using future mortality improvement inherent in the Social
Security Administration’s 2014 Trustee report.
RP-2014 (with MP-2014 improvement removed) Disability mortality tables, with future mortality
improvement projected generationally using future mortality improvement inherent in the Social
Security Administration's 2014 Trustee report.
The most recent comprehensive experience study was completed in April 2015 and was based on
member experience between June 30, 2010 and June 30, 2014. The demographic assumptions were
updated as needed for the June 30, 2015 actuarial valuation based on the results of the study.
Actuarial Assumptions and Inputs:
The 1977 Fund also provides disability and survivor benefits. An active member may file an application for disability benefits. A
determination is then made by the local pension board, and reviewed by the INPRS Board of Trustees, as to whether the member has a
covered impairment and whether the impairment was incurred in the line of duty or not. The calculation for disability benefits is based
on when the member was first hired, the type of impairment, and other factors. In addition, the heirs or estate of a fund member may
be entitled to receive $12,000 upon the member’s death.
If a member dies while receiving retirement or disability benefits, there are provisions for the surviving spouse and child(ren) to
receive a portion of the benefits. The member’s surviving spouse is entitled to a monthly benefit equal to 60 percent of the member’s
monthly benefit during the spouse’s lifetime. Each of the member’s surviving child(ren) is entitled to a monthly benefit equal to 20
percent of the member’s monthly benefit until the age of 18, or age 23, if a full-time student. If there is no eligible surviving spouse or
child(ren), a dependent parent(s) may receive 50 percent of the member’s monthly benefit during their lifetime.
The monthly pension benefits for members in pay status may be increased annually in accordance with the cost-of-living adjustment
(COLA) statute. A member is entitled to an annual increase in the member's benefit based on the percentage increase in the Consumer
Price Index (January-March); however, the maximum increase is 3.0 percent.
76
Discount Rate
Discount Rate Sensitivity
2018 Police
2018 Fire
•
•
The discount rate is equal to the expected long-term rate of return on plan investments, net of
investment expense and including price inflation. There was no change in the discount rate from the
prior measurement date.
6.75%
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 June 30, 2018 actuarial valuation
assumes a long-term rate of return on assets of 6.75%, a 30-year level dollar open method for
amortizing the surplus of assets over the actuarial accrued liability (over 100% funded as of June 30,
2018), and a 5-year smoothing method for recognizing investment gains and losses in the actuarial
value of assets.
Geometric Basis
Long-Term Expected
Rate of Return
4.4%
5.4%
2.2%
8.0%
2.3%
6.5%
2.7%
5.2%
Real estate 7.0%
Changes in actuarial assumptions:
Private equity
The long-term return expectation for the defined benefit retirement plan has been determined by using a building-block approach and
assumes time horizon as defined in the INPRS Investment Policy Statement. A forecasted rate of inflation serves as the baseline for
the return expectation. Various real return premiums over the baseline inflation rate have been established for each asset class. The
long-term expected nominal rate of return has been determined by calculating a weighted average of the expected real return
premiums for each asset class, adding the projected inflation rate, and adding the expected return from rebalancing uncorrelated asset
classes.
Total pension liability for each defined benefit pension plan was calculated using the discount rate of 6.75 percent. The projections of
cash flows used to determine the discount rate assumed the contributions from employers and, where applicable, from the members,
would at the minimum be made at the actuarially determined required rates computed in accordance with the current funding policy
adopted by the INPRS Board, and contributions required by the State (the non-employer contributing entity) would be made as
stipulated by state statute. Projected inflows from investment earnings were calculated using the long-term assumed investment rate of
return (6.75 percent). Based on those assumptions, each defined benefit pension plan's fiduciary net position was projected to be
available to make all projected future benefit payments of current plan members; therefore, the long-term expected rate of return on
pension plan investments was applied to all periods of projected benefits to determine the total pension liability for each plan.
The net pension liability (asset) is sensitive to changes in the discount rate. To illustrate the potential impact, the following table
presents the net pension liability of each defined benefit pension plan calculated using the discount rate of 6.75 percent, as well as
what each plan's net pension liability would be if it were calculated using a discount rate that is one percentage point lower (5.75%) or
one percentage point higher (7.75%) than the current rate:
Fixed-income – inflation-linked 20.0%
Commodities 8.0%
Changes in actuarial methods:
There were no method changes for the June 30, 2018 valuation.
Absolute return
7.0%
Risk parity 12.0%
Fixed-income – inflation-linked
There were no assumption changes for the June 30, 2018 valuation.
Target Asset
Allocation
Public equity 22.0%
10.0%
14.0%
1% Increase
7.75%
(8,513,960)$
(11,266,227)$
Current Rate
6.75%
(897,318)$
(1,187,390)$
1% Decrease
5.75%
8,525,370$
11,281,326$
77
Investment Valuation and Benefit Payment Policies:
Pension Plan Report and Fiduciary Net Position:
Annual Pension Cost:
At December 31, 2018, the City reported an asset of $897,318 for police and an asset of $1,187,390 for fire for its proportionate share
of the net pension liability. The City's proportionate share of the net pension liability was based on the City's wages as a proportion of
total wages for the plan. The proportionate share used at the June 30, 2018, measurement date was 0.0102071 for police and
0.0135067 for fire.
Indiana Public Retirement System
One North Capitol Avenue, Suite 001
Ph. (844) GO-INPRS
Indianapolis, Indiana 46204
Derivative instruments are marked to market daily with changes in fair value recognized as part of investments and investment
income.
The pension plan's fiduciary net position has been determined on the same basis of accounting used by the pension plan. Detailed
information about the pension plan's fiduciary net position is available in the separately issued INPRS financial report, which is
available online at http://www.inprs.in.gov or may be obtained by contacting:
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions:
The pooled and non-pooled investments are generally reported at fair value by INPRS. Fair value is the price that would be received to
sell an asset in an orderly transaction between market participants at the measurement date.
Short-term investments consist primarily of cash, money market funds, certificates of deposits, and fixed-income instruments with
maturities of less than one year. Short-term investments are reported at cost, which approximates fair value or, for fixed-income
instruments, valued using similar methodologies as other fixed-income securities described below.
Alternative investments include limited partnership interests in private equity, absolute return, private real estate and risk parity
investment strategies. Publicly traded alternative investments are valued based on quoted market prices. In the absence of readily
determinable public market values, alternative investments are valued using current estimates of fair value obtained from the general
partner or investment manager. Moreover, holdings are generally valued by a general partner or investment manager on a quarterly or
semi-annual basis. Valuation assumptions are based upon the nature of the investment and the underlying business. Additionally,
valuation techniques will vary by investment type and involve a certain degree of expert judgment. Alternative investments, such as
investments in private equity or real estate, are generally considered to be illiquid long-term investments. Due to the inherent
uncertainty that exists in the valuation of alternative investments, the realized value upon the sale of an asset may differ from the fair
value.
The City's contribution to the plan for the year ending December 31, 2018, was $1,449,918 for police participants and $1,918,238 for
fire participants, which was equal to the required contributions for each year.
Fixed-income securities consist primarily of the U.S. government, U.S. government-sponsored agencies, publicly traded debt and
commingled investment debt instruments. Equity securities consist primarily of domestic and international stocks in addition to
commingled equity instruments. Fixed-income and equity securities are generally valued based on published market prices and
quotations from national security exchanges and securities pricing services. Securities that are not traded on a national security
exchange are valued using modeling techniques that include market observable inputs required to develop a fair value. Commingled
funds are valued using the net asset value (NAV) of the entity.
78
Police
Firefighters
2019 652,597$ 851,498$
2020 (83,115) (122,044)
(449,549)$ (648,349)$
2021
Total
2,631,050
For the year ended December 31, 2018, the City recognized pension expense of $1,060,584 for police and $1,391,374 for fire, which
included net amortization of deferred amounts from changes in proportion and differences between employer contributions and
proportionate share of contributions. At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of
resources related to the 1977 Plan from the following resources:
2,585,395$ 2,493,798$
Deferred Outflows
of Resources
Deferred Inflows of
Resources
Net difference between projected and actual earnings on
pension plan investments
- 1,988,301
Changes in proportion and differences between City
contributions and proportionate share of contributions
405,255 -
Net difference between projected and actual earnings on
pension plan investments
(502,281)
2,673,026 3,321,375
737,109 Pension contributions subsequent to measurement date
(629,411)
Deferred outflows of resources resulting from employer contributions subsequent to the June 30, 2018 measurement date are
recognized as a reduction of net pension liability in the year ending December 31, 2018. Deferred inflows of resources resulting from
the differences between projected and actual investment earnings on Plan investments are amortized over a 5-year period. A change in
an employer's proportionate share represents the change as of the current year measurement date versus the prior year measurement
date and is amortized over the average expected remaining service lives of the plan. The difference between an employer's
contributions and the employer's proportionate share of the collective contributions is amortized over the average expected remaining
service lives of the plan. Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in
pension expense as follows:
Year Ending December 31,Police Amount Fire Amount
Total that will be recognized in pension expense (income) based
on the table below
91,243
Total that will be recognized in pension expense (income) based
on the table below 2,044,249 2,493,798
Pension contributions subsequent to measurement date 541,146 -
(844,937)
2022
-
Total
78,058
Changes in assumptions
Changes in proportion and differences between City
contributions and proportionate share of contributions
Differences between expected and actual experience
(284,446) (211,761) 2023
3,410,135$
2,196,537$ 548,168$
142,157
-
71,234
(676,711)
Thereafter 324,422 428,291
Deferred Outflows
of Resources
Changes in assumptions
306,254 -
Deferred Inflows of
Resources
Differences between expected and actual experience 1,659,937$ 414,254$
3,321,375$
79
G. Other Post-Employment Benefits
1. Single-Employer Defined Benefit Healthcare Plan
Plan Description
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 None None
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 $2,000 lifetime max for orthodontia
Monthly Premiums:
Medical and Vision
Retiree
Spouse
Dental
Retiree
Spouse
The City offers other post-employment benefits (OPEB) in the form of health insurance, in addition to pensions described elsewhere
herein. OPEB is authorized by the Common Council of the City, subject to annual appropriation.
750$ 1,500$
2x Above
$50
$668.00 $734.80
4,000$ 3,000$
N/A
2,000$
N/A
Plan A Plan B
Plan A Plan B
2,000$
4,000$
N/A
0%
80%
80%
50%
$2,000
2017 Projected 2018
Plan A Plan B
$963.60 $1,133.00
Dental Plan
Plan A Plan B
50$
20%
$10
$60
$100
40%
1,500$
$56.00
$48.00
$58.80
$50.40
$864.60
0%
$786.00
$1,030.00
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.
$876.00
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).
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.
Subject to medical deductible
and coinsurance
Network Non-Network
Plan B
Non-NetworkNetwork
80
Employees Covered By Benefit Terms
At the OPEB liability measurement date of December 31, 2018, the following members were covered by the terms of the plan:
Inactive plan members currently receiving benefit payments
Inactive plan members entitled to but not yet receiving benefit payments
Active plan members: fully eligible
Active plan members: not fully eligible
Total
Net OPEB Liability
Under this method, as used in the December 31, 2018, OPEB valuation, the Actuarial Present Value (APV) of Benefits (APVB) of
each individual included in the valuation is allocated on a level basis over the earnings of the individual between entry age and
assumed exit age(s). The employer portion of this APVB allocated to a valuation year is the Employer Normal Cost. The portion of
this APVB not provided for at a valuation date by the APV of Future Employer Normal Costs is the Total OPEB Liability.
The committed fund balance of the Health Self Insurance Fund includes $1,203,963 to cover future claims of the OPEB plan. The
committment is not irrevocable, and the underlying assets are not legally protected from the creditors of the City.
The Entry Age Normal Actuarial Cost Method used in the current OPEB actuarial valuation is unchanged from the
prior OPEB actuarial valuation.
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.
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.
38
-
138
Spousal coverage continues after the death of the retiree or after the retiree becomes eligible for Medicare, and ends at the spouse's
Medicare eligibility date.
The 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.
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.
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.
For the year ended December 31, 2018, the City contributed $539,334 to the Plan for current premiums.
469
645
81
Changes in the Net OPEB Liability:
1. Balances at December 31, 2017
2. Changes for the Year
a. Service Cost
b. Interest Cost
c. Projected Earnings on Plan Investments
d. Changes in Plan Provisions
e. Administrative Expenses
f. Other Changes in Plan Fiduciary Net Position
of Resources:
1. Differences between Expected and Actual Experience
2. Changes in Assumptions
4. Total OPEB Expense/ Net Changes
3. Balances at December 31, 2018
4. Sensitivity of the Net OPEB Obligation to Changes in the Discount Rate
Total OPEB Liability
Plan Fiduciary Net Position
Net OPEB Liability
5. Sensitivity of the Net OPEB Obligation to Changes in the Healthcare Cost Trend Rate
Total OPEB Liability
Plan Fiduciary Net Position
Net OPEB Liability
The following presents the net OPEB liability of the Employer, as well as what the Employer's net OPEB liability would be if it
were calculated using a discount rate that is 1-percentage point lower or 1-percentage-point higher than the current discount rate:
- -
23,962,557$ 26,077,678$ 28,541,513$
23,827,468$ -$ 23,827,468$
-
861,027 - 861,027
-
1,519,286 - 1,519,286
Net OPEB
Liability
Plan Fiduciary
Net Position
Total OPEB
Liability
2,250,210
26,077,678$ -$ 26,077,678$
g. Current Period Recognition of Deferred Outflows / (Inflows)
3. Net Difference between Projected and Actual Plan Investment
Earnings
-
- -
1% Decrease Current Rate 1% Increase
28,195,222$ 26,077,678$ 24,082,811$
- - -
28,195,222$ 26,077,678$ 24,082,811$
1% Decrease Current Rate 1% Increase
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.
28,541,513$
-
23,962,557$ 26,077,678$
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:
- - -
- - -
(69,984) - (69,984)
(60,119) - (60,119)
- - -
2,250,210 -
-
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.
82
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB
Balance, December 31, 2017
Differences between expected and actual experience, favorable
Current amortization (deduct)
Measurement Date December 31, 2018
Valuation Date December 31, 2018
COST METHOD Entry Age Normal (Level % of Pay)
ECONOMIC ASSUMPTIONS:
Discount rate
Discount rate basis
Coverage rate
Spouses
Mortality:
Civilian employees
Police and fire employees SOA published mortality table: RP-2014 Blue Collar mortality table adjusted to the
2006 base mortality year. Separate tables for males and female participants. Separate
tables for active employees, healthy annuitants, and disabled participants.
SOA published mortality table: RP-2014 Total Dataset mortality table adjusted to the
2006 base mortality year. Separate tables for males and female participants. Separate
tables for active employees, healthy annuitants, and disabled participants.
Active participants: 35% are assumed to cover a spouse, with male spouses two years
older than female spouses.
Retired participants: Age and marital status based on actual census data.
90% of eligible employees are assumed to be covered in the plan at retirement.
-
3.69% per annum as of December 31, 2018
(249,695)
- 676,338
3.2% per annum as of December 31, 2017
S&P Municipal Bond 20-Year High Grade Rate Index*
Total -$ 2,559,367$
Changes in assumptions, favorable
For the year ended December 31, 2018, the City recognized OPEB income of $249,695. OPEB expense represents the change in the
net OPEB liability during the measurement period, adjusted for actual contributions and the deferred recognition of changes in
investment gain/loss, and actuarial assumptions or method. At December 31, 2018, the City reported deferred outflows of resources
and deferred inflows of resources related to OPEB from the following sources:
Deferred Outflows
of Resources
Deferred Inflows of
Resources
- 787,315
*The S&P Municipal Bond 20 Year High Grade Rate Index consists of bonds in the S&P Municipal Bond Index with a
maturity of 20 years. Eligible bonds must be rated at least AA by Standard and Poor's Ratings Services, Aa2 by
Moody's or AA by Fitch. If there are multiple ratings, the lowest rating is used.
Actuarial Methods and Assumptions
At December 31, the deferred outflows / (inflows) of resources based on obligations for the Plan are as follows:
Year Ending December 31, Amount
2019 (249,695)$
2020 (249,695)
2021 (249,695)
2022 (249,695)
2023
-$ 1,345,409$
(249,695)
Thereafter (1,310,892)
(2,559,367)$
83
Mortality improvement
Disability
Turnover
Retirement Rates:
Civilian employees:
Police and fire employees:
Plan Mix:
Plan A
Plan B
Per capita claims cost:
Age Age
55-59 All Ages
60-64
Age Age
55-59 All Ages
60-64
Inflation; health care cost trend rate: Year Medical Dental
0
1 to 2
3 to 5
6 to 8
9 to 10
11+
SOA published mortality improvement scale: MP-2018 (MP-2017 at December 31,
2017) generational, which projects mortality improvement indefinitely beyond the
2006 base mortality year beginning with high initial improvement (based on recent
experience) and tapering to a lower level of improvement for long-term mortality
projections.
679$
17,298$
647$
2017 Medical & Vision
61
75%
5.0%
5.0%
5.0%
5.0%
7.0%
15,726$
9.0%
2018 Medical & Vision
Male Female
Female
65+
Male Female
13,487$ 13,342$ 679$
19%
Female
19%
20%
35%
24%
6.0%
5.0%
5.0%
5.0%
Projected Projected
20%
None Assumed
40%
25%
22%
Female
8%
14%
32%
Female
12,129$
14,210$
17%
19%
30%
Varies by age and status; representative rates follow:
16%
30%
100%
21%
2%
3%
5%
4%
4%
5%
647$
25%
2017
55
25%
Age
45-51
Male
According to Sarason Table T-1
52-54
55-60
61-64
56
57
2018
Age
12,261$
62
58
59
60
Male
4%
5%
50-53
54
15,631$
2018 Dental
2017 Dental
Rate
2.5%
7.5%
22.5%
Age
63
64
65
66
67
68
69
70-74
75+
4%
2%
5%
26%
3%
2%
7%
12%
14%
9.0%
8.0%
Male
100%
30.0%
100.0%
75%
Male
17%
84
H. Schedule of Aggregate Amounts – Single-employer and Cost Sharing Multiple-employer Defined Benefit Pension Plans
Pension liability
Pension assets
Net pension liability (asset)
Deferred outflows of resources
Deferred inflows of resources
Pension expense (income)
I. Deferred Compensation Plan
J. Interfund Receivables and Payables
The composition of the interfund balances as of December 31, 2018 is as follows:
Due to/from other funds
Receivable Fund Payable Fund
Motor Vehicle Highway Fund Storm Water Fund
Total among governmental funds
Sewer Enterprise Fund Water Enterprise Fund
Total among proprietary funds
The City offers its employees a deferred compensation plan established in accordance with Internal Revenue Code Section 457. The
plan is 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 plan
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 plan 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 plan 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.
2,928,284$
138,480,506$
Public Employees'
Retirement
1937 Firefighters'
Pension
1925 Police
Officer's Pension
1977 Police Officers'
and Firefighters'
Pension and Disability
140,565,214
(2,084,708)$
5,995,530$
5,815,173$
2,451,958$
131,361
9,762,204$
6,059,128$
2,610,570$
232,129,822$ 9,893,565$
Water utility invoices include charges for sewer and other utilities, and these charges are remitted as collected, one month in arrears.
9,746,032$
8,425,743$
9,253$
198,412,932
33,716,890$
Total
-$
355,186$
10,601,151$
5,405
10,595,746$
1,803$
-$
323,700$
73,154,600$
57,710,952
15,443,648$
3,739,446$
The Motor Vehicle Highway Fund is due $58,378 from the Storm Water Fund to comply with an ordinance requiring certain transfers.
58,378$
58,378$
971,259$
971,259$
Amount
85
K. Reclassifications
Certain funds treated as major funds in the prior year were reclassified as nonmajor for the year ended December 31, 2018:
Total fund balances of nonmajor funds as previously reported
Reclassification from major to nonmajor funds:
Bond Bank Project Fund
Redevelopment Authority Capital Projects Fund
Motor Vehicle Highway Fund
Total reclassification
L. Fund-level Prior Period Adjustments
Reclassifications from proprietary to governmental funds:
Storm Water
4CDC Operating Fund
Cash account reclassification:
Redevelopment Commission Fund
Redevelopment Authority Capital Projects Fund
Restatement of beginning cash, Capital Lease Fund
Total fund-level prior period adjustment
M. Government-wide Prior Period Adjustments
Governmental activities beginning net position was adjusted upward $40,581,397 to account for the following:
Beginning Net Position
Reclassifications from proprietary to governmental funds
Storm Water
4CDC Operating Fund
Change to governmental reporting standards
Total reclassification
Beginning Net Position after reclassification
Restatement:
Decrease OPEB liability due to implementation of GASB 75
Change in capital assets at December 31, 2017
Restatement of beginning cash, Capital Lease Fund
Restatement of compensated absences liability
Restatement of pension liability
Total restatement
Total prior period adjustment
Beginning Net Position, Adjusted
(847,599)
-
(3,373,462)
26,473,064$
30,352
(3,373,462)
3,373,462
25,655,817$
26,473,064$
30,352
-
3,373,462
29,029,279$
259,286
40,976,752
(2,715,027)
37,199,230
332,957,228$
-
48,650,106$
6,663,949
4,822,174
2,267,572
10,380,233
59,030,339$
26,473,064$
30,352
(23,121,249)
-$
-
(3,373,462)$
Governmental funds beginning fund balance was adjusted upward $25,655,817 to account for the following:
$ 292,375,831
3,382,167
295,757,998
40,581,397$
(474,182)
Major Nonmajor
Total
Governmental
(3,373,462)
Less, portion of fund balance attributable to cash account
reclassification prior period adjustment, Note L
(847,599) (847,599)
Total fund balances of nonmajor funds reclassified as of January 1, 2018
86
Business-type activities beginning net position was adjusted downward $854,248 to account for the following:
Beginning Net Position
Reclassifications from proprietary to governmental funds
Storm Water
4CDC Operating Fund
Total reclassification
Beginning Net Position after reclassification
Restatement:
Decrease in OPEB liability due to implementation of GASB 75
Total restatement
Total prior period adjustment
Beginning Net Position, Adjusted
N. Subsequent Events
108,802,808$
107,948,560$
268,188
On April 9, 2019, the City issued $10,525,000 of its Taxable Lease Rental Bonds, Series 2019A-1 . The bonds were issued in order to
acquire capital assets. To satisfy the principal and interest on the bonds, for the terms of the bonds, the City has pledged an unlimited
ad valorem property tax levy. The City expects the pledged revenue will be more than sufficient to satisfy the obligations described
above, as well as the obligations described elsewhere herein for which similar pledges have been made. This revenue is not pledged to
satisfy any other obligations, nor is it committed for operating or other necessary expenditures.
107,680,372
(854,248)$
(1,122,436)
On April 9, 2019, the City also issued $8,170,000 of its Taxable Lease Rental Bonds, Series 2019A-2. The bonds were issues in order
to acquire capital assets, for which the City has pledged its incremental tax revenue from certain allocation areas up to the amount
needed to satisfy the principal and interest on the bonds as they become due. The City expects the pledged revenue will be more than
sufficient to satisfy the obligations described above, as well as the obligations described elsewhere herein for which similar pledges
have been made.
(1,092,084)$
(30,352)
268,188
87
2018 2017
Total OPEB Liability
Service Cost 1,519,286$ 1,330,012$
Interest Cost 861,027 1,029,979
Differences between Expected and Actual Experience (69,984) (34,161)
Changes in Assumptions (60,119) (85,431)
Net Changes in Total OPEB Liability 2,250,210 2,240,399
Total OPEB Liability - Beginning 23,827,468 23,459,952
Total OPEB Liability - Ending 26,077,678 25,700,351
Plan Fiduciary Net Position - Beginning - -
Plan Fiduciary Net Position - Ending - -
Net OPEB Liability 26,077,678$ 25,700,351$
Plan Fiduciary Net Position as a Percentage of Total OPEB Liability 0.00%0.00%
Covered Payroll 38,986,588$ 38,047,090$
Net OPEB Liability as a Percentage of Covered Payroll 66.89%67.55%
The most recent actuarial valuation date is December 31, 2018.
Additional information on the City's OPEB can be found in Note II.G on pages 79–83 of this report.
Note: The City implemented GASB 75 in 2018. 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.
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN NET OPEB LIABILITY AND RELATED RATIOS
For the Fiscal Year Ended December 31, 2018
88
2018 2017
ADDITIONS
1. Employer Contributions 539,334$ 413,786$
2. Investment Income - -
a . Net Increase in Fair Value of Investments - -
b . Interest and Dividends - -
c . Investment Expense - -
d . Total Investment Income = 2a + 2b - 2c - -
3. Transfers Into the Trust - -
4. Other Additions - -
5. Total Additions = (1) + (2d) + (3) + (4)539,334$ 413,786$
DEDUCTIONS
6. Benefit Payments 539,334$ 413,786$
7. Administrative Expense - -
8. Transfers Out of the Trust - -
9. Other Deductions - -
10. Total Deductions = (6) + (7) + (8) + (9)539,334$ 413,786$
NET POSITION RESTRICTED FOR POSTEMPLOYMENT BENEFITS
OTHER THAN PENSIONS
11. Beginning of Year -$ -$
12. End of Year = (5) - (10) + (11)-$ -$
Additional information on the City's OPEB can be found in Note II.G on pages 79–83 of this report.
Note: The City implemented GASB 75 in 2018. 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.
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION
For the Fiscal Year Ended December 31, 2018
89
Actuarially determined contribution2017557,208$ 557,208 - -$ Not applicable2017577,369$ 577,369 553,519$ 553,519 -$ Not applicableCovered payrollContributions as a percentage of covered payroll534,143$ 534,143 - -$ Not applicable2015562,264$ 562,264 -$ -$ 2018Not applicable-$ - 564,928 564,928$ - 584,282 Not applicable2016-$ 584,282$ Contribution deficiency (excess)Not applicableNot applicable-$ Contributions in relation to the actuarially determined contributionNot applicable-$ -$ -$ Contribution deficiency (excess)Covered payrollContributions as a percentage of covered payrollCity of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF EMPLOYER CONTRIBUTIONSDecember 31, 20182016546,748$ 546,748 See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.1937 Firefighters' Pension Plan:201820151925 Police Officers' Pension Plan:Actuarially determined contributionContributions in relation to the actuarially determined contribution-$ 90
Total pension liabilityFiduciary net positionNet pension liabilityFiduciary net position as a percentage of the total pension liabilityCovered payrollNet position as a percentage of covered payrollTotal pension liabilityFiduciary net positionNet pension liabilityFiduciary net position as a percentage of the total pension liabilityCovered payrollNet position as a percentage of covered payrollSCHEDULE OF NET PENSION LIABILITY AND RELATED RATIOS-$ 10,601,151$ 5,405 10,595,746$ 0.1%See notes to schedules, 1925 Police Officers' and 1937 Firefighters' Pension Plans.- 1937 Firefighters' Pension Plan:2018Not applicableNot applicable10,857,342$ 2017Not applicable0.2%-$ 9,893,565$ December 31, 20189,762,204$ 1.3%Not applicable- City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATION1925 Police Officers' Pension Plan:2018147,471 10,119,548$ 131,361 9,972,077$ 1.5%201710,883,369$ 26,027 91
Total pension liability - beginningTotal pension liability - endingFiduciary net position - beginningFiduciary net position - endingNet pension liability - endingTotal pension liability - beginningTotal pension liability - endingFiduciary net position - beginningFiduciary net position - endingNet pension liability - ending- (4,021) See notes to schedules, 1925 Police and 1937 Firefighters' Pension Plans5,405 26,027 $ 10,595,746 $ 10,857,342 289,272 192,103 Effect of assumptions changes or inputs(351,553) - Benefit payments(605,214) (577,920) 584,282 577,369 Net investment income310 224 Benefit payments(605,214) (577,920) Administrative expenses10,883,369 26,027 30,375 Employer contributions148,470 557,208 147,471 Benefit payments(582,141) (557,214) $ 9,762,204 20172018564,928 1,203 1937 Firefighters' Pension Plan:Employer contributionsNet investment incomeAdministrative expensesEffect of economic/demographic gains and losses385,817 9,893,565 882 201810,119,548$ City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONSCHEDULE OF CHANGES IN NET PENSION LIABILITYDecember 31, 201810,119,548$ 1925 Police Officers' Pension Plan:(1,875) $ 9,972,077 201,812 (100) (337,280) 338,525 Effect of economic/demographic gains and losses(582,141) Benefit payments- 10,119,548 10,883,369$ 10,883,369$ 147,471 131,361 10,601,151 (557,214) Interest on total pension liability385,277 355,402 2017Effect of assumptions changes or inputs354,913 Interest on total pension liability92
Remaining amortization periodNOTES TO SCHEDULESMortalityActuarial cost methodAmortization method1925 POLICE OFFICERS' AND 1937 FIREFIGHTERS' PENSION PLANSN/AN/AN/ARetirement ageDecember 31, 2018N/AN/ANote: The City is presenting its fourth CAFR since 2007. The information above is presented for as many years as available. The schedules are intended to show information for 10 years. Years not shown are not available.Actuarially determined contribution rates are calculated as of January 1, of the fiscal year in which contributions are reported.Valuation date:Methods and assumptions used to determine most current contribution rate above:City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATION93
City:City's Proportionate Share of the Net PensionPERF Plan Net Position as a Percentage of Total Pension LiabilityPark:City's Proportionate Share of the Net PensionContinued on next page.PERF Plan Net Position as a Percentage of Total Pension Liability 78.9% 72.7% 71.2% 73.3% Liability as a Percentage of Its Covered Payroll 66.6% 89.9% 94.7%85.0%City's Proportionate Share of the Net Pension Liability (Asset)2,092,920$ 2,704,588$ 2,903,697$ 2,444,149$ City's Covered Payroll3,143,577$ 3,007,362$ 3,066,437$ 2,874,230$ 2018201720172017City's Proportion of the Net Pension Liability0.00061610.00060620.00063980.000600178.9%72.7%71.2%73.3%City's Proportion of the Net Pension Liability0.00393010.00349240.00353530.0034106 Liability as a Percentage of Its Covered Payroll66.8%89.9%94.7%85.0%City's Proportionate Share of the Net Pension Liability13,350,728$ 15,581,494$ 16,044,763$ 13,891,040$ City's Covered Payroll19,977,213$ 17,326,450$ 16,943,306$ 16,335,991$ REQUIRED SUPPLEMENTARY INFORMATIONDEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANSSCHEDULE OF THE CITY'S PROPORTIONATE SHAREOF THE NET PENSION LIABILITYDecember 31, 2018Public Employees' Retirement Fund:City of Carmel, Indiana201820172016201594
Police:City's Proportionate Share of the Net PensionFire:City's Proportionate Share of the Net PensionNote: The City is presenting its fourth CAFR since 2007. The information above is presented for as many years as available. The schedules are intended to show information for 10 years. Years not shown are not available.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.1977 Plan Net Position as a Percentage of Total Pension Asset 101.5% 100.3% 98.2% 103.2% Liability as a Percentage of Its Covered Payroll -10.9% -1.9%11.5% -19.8%City's Covered Payroll 10,932,080$ 10,260,440$ 10,452,317$ 10,225,780$ City's Proportionate Share of the Net Pension Liability (Asset)(1,187,390)$ (195,225)$ 1,201,404$ (2,025,686)$ City's Proportion of the Net Pension Liability0.01350670.01265610.01352370.0137130 Pension Asset104%104%103%103%2018201720162015 Liability as a Percentage of Its Covered Payroll-11%-2%11%-20%1977 Plan Net Position as a Percentage of TotalCity's Covered Payroll8,261,443$ 7,634,954$ 7,847,007$ 7,552,611$ City's Proportion of the Net Pension Liability0.01020710.00941760.01015280.0101282City's Proportionate Share of the Net Pension Liability (Asset)(897,318)$ (145,270)$ 901,944$ (1,496,139)$ (Continued)1977 Police Officers' and Firefighters' Pension and Disability Fund:2018201720162015City of Carmel, IndianaREQUIRED SUPPLEMENTARY INFORMATIONDEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANSSCHEDULE OF THE CITY'S PROPORTIONATE SHAREOF THE NET PENSION LIABILITYDecember 31, 201895
2017 City
2016 City
2015 City
2017 Park
2017 Police
2016 Police
2015 Police
23%2017 Fire 2,350,371$ 2,350,371$ -$ 10,212,471$
22%
2016 Fire 2,186,794$ 2,186,794$ -$ 10,508,951$ 21%
2015 Fire 2,185,238$ 2,185,238$
21%
1,607,669$ 1,607,669$ -$ 7,417,812$ 22%
2018 Fire 2,351,694$ 2,351,694$ -$ 11,099,990$
17%
1,713,532$ 1,713,532$ -$ 7,581,941$ 23%
3,045,739$ 3,045,739$ -$ 17,422,236$
-$ 16,344,635$
1977 Police Officers' and Firefighters' Pension and Disability Fund:
Contractually
Required
Contributions
City
Contributions
related to the
Contractually
Required
Contributions
2018 Police 1,809,416$ 1,809,416$ -$ 8,418,065$ 21%
2018 Park 307,209$ 307,209$
-$ 10,084,157$
2,916,463$ 2,916,463$ -$ 17,095,135$
7,920,606$
Contribution
Deficiency
(Excess)
City's Covered
Payroll
Contributions as
a Percentage of
Covered Payroll
17%2,755,295$ 2,755,295$
17%
-$ 3,150,943$ 10%
21%1,657,359$ 1,657,359$ -$
-$ 3,177,631$ 10%
304,629$ 304,629$
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
DEFINED BENEFIT PENSION PLANS - MULTIPLE EMPLOYER PLANS
SCHEDULE OF CITY CONTRIBUTIONS
December 31, 2018
16%
Public Employees' Retirement Fund:
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
2018 City 3,308,652$ 3,308,652$ -$ 20,639,904$
96
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
NOTES TO SCHEDULES
PUBLIC EMPLOYEES' RETIREMENT AND 1977 POLICE OFFICERS' AND FIREFIGHTERS'
PENSION AND DISABILITY FUNDS
December 31, 2018
Note: The City is presenting its fourth CAFR since 2007. The information above is presented for as many
years as available. The schedules are intended to show information for 10 years. Years not shown are not
available.
Note: Covered payroll for the purposes of this schedule was determined as of the City's fiscal year ended
December 31.
97
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax 40,139,253$ 39,765,421$ 39,677,955$ (87,466)$
Income tax 44,912,191 44,218,088 44,518,424 300,336
Licenses and permits 1,980,564 2,019,782 2,144,849 125,067
Intergovernmental 591,177 586,791 524,552 (62,239)
Charges for services 2,815,890 3,225,489 936,829 (2,288,660)
Fines and forfeits 524,655 476,065 457,062 (19,003)
Miscellaneous 1,296,549 1,533,670 589,660 (944,010)
Township and joinder agreements 883,646 855,250 888,877 33,627
Other 6,445,465 6,127,724 8,485,672 2,357,948
Total revenues: budgetary basis 99,589,390 98,808,280 98,223,880 (584,400)$
Increase in available intergovernmental receivable - - - -
Increase in available income tax receivable - - 88,183 -
Transfer from a nonmajor fund
treated as revenue on a budgetary basis - -(148,831) -
Total revenues reported on the
Statement of Revenues and Expenditures -$ -$ 98,349,314$ -$
EXPENDITURES:
Current:
General government:
Clerk-Treasurer:
Personal services 1,023,759$ 1,023,759$ 934,698$ (89,061)$
Supplies 10,382 10,382 7,949 (2,433)
Other services and charges 248,699 248,699 145,751 (102,948)
Capital outlay 17,390 17,390 3,952 (13,438)
Mayor's Office: -
Personal services 527,703 437,703 404,537 (33,166)
Supplies 6,245 6,245 5,948 (297)
Other services and charges 4,097,331 4,187,331 4,118,959 (68,372)
Capital outlay - - - -
City Council:
Personal services 316,205 316,205 242,442 (73,763)
Supplies 3,500 3,500 1,718 (1,782)
Other services and charges 313,099 313,099 135,070 (178,029)
Capital outlay 8,300 8,300 2,618 (5,682)
Budgeted Amounts
Continued on next page.
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
General Fund
For the Fiscal Year Ended December 31, 2018
98
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
General government (continued):
Board of Public Works:
Personal services 19,714 19,714 14,210 (5,504)
Debt service 17,612,166 17,612,166 15,240,118 (2,372,048)
Administration:
Personal services 407,810 354,522 356,120 1,598
Supplies 69,852 59,889 53,589 (6,300)
Other services and charges 2,223,093 2,128,892 1,974,596 (154,296)
Capital outlay 164,164 201,272 161,029 (40,243)
Brookshire Golf Course:
Personal services 796,527 796,527 613,187 (183,340)
Supplies 140,050 140,050 79,319 (60,731)
Other services and charges 402,563 402,603 358,658 (43,945)
Capital outlay 159,500 159,500 90,597 (68,903)
Building Operations:
Supplies 8,000 8,000 6,415 (1,585)
Other services and charges 2,741,165 2,988,422 2,984,375 (4,047)
Capital outlay - - - -
City Court:
Personal services 842,126 842,126 705,778 (136,348)
Supplies - - - -
Other services and charges - - - -
Capital outlay - - - -
Law Department:
Personal services 952,536 851,536 792,921 (58,615)
Supplies 3,992 4,239 3,527 (712)
Other services and charges 336,565 428,323 353,167 (75,156)
Capital outlay 16,831 28,031 12,584 (15,447)
Community Services:
Personal services 2,470,557 2,470,557 2,428,144 (42,413)
Supplies 50,169 50,169 37,357 (12,812)
Other services and charges 1,329,087 1,268,176 748,931 (519,245)
Capital outlay 323,517 323,555 222,804 (100,751)
Personnel/ Human Resources:-
Personal services 438,300 830,300 804,102 (26,198)
Supplies 500 500 7 (493)
Other services and charges 102,726 105,726 65,306 (40,420)
Capital outlay 3,100 3,100 2,474 (626)
For the Fiscal Year Ended December 31, 2018
(Continued)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
Continued on next page.
Budgeted Amounts
99
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
Information Systems:
Personal services - - 4 4
Supplies 659 659 659 (0)
Other services and charges 74,107 74,107 60,628 (13,479)
Capital outlay 58,801 58,801 58,061 (740)
City Property Maintenance:
Personal services - - - -
Supplies 94,023 94,023 73,950 (20,073)
Other services and charges 807,946 817,970 843,767 25,797
Capital outlay - - - -
Public Affairs/ Community Relations: -
Personal services 895,295 801,055 719,088 (81,967)
Supplies 4,408 4,408 4,071 (337)
Other services and charges 2,346,890 2,441,130 1,751,133 (689,997)
Capital outlay 48,819 48,819 25,806 (23,013)
Street Department - Special Projects
Other services and charges 205,363 305,363 205,363 (100,000)
Total general government 42,518,172 43,296,843 37,855,487 (5,441,356)
Public Safety:
Fire Department:
Personal services 22,991,214 23,152,529 22,661,543 (490,986)
Supplies 299,501 299,953 288,352 (11,601)
Other services and charges 2,167,899 2,256,523 2,080,657 (175,866)
Police Department:
Personal services 18,196,945 18,196,945 17,556,520 (640,425)
Supplies 821,860 822,007 630,695 (191,312)
Other services and charges 1,297,555 1,307,675 1,029,784 (277,891)
Capital outlay 987,558 989,801 702,371 (287,430)
Communication Center:
Personal services 1,995,010 1,838,010 1,769,608 (68,402)
Supplies 36,911 36,911 36,611 (300)
Other services and charges 2,375,795 2,344,795 2,210,815 (133,980)
Capital outlay 397,434 585,434 394,714 (190,720)
Total public safety 51,567,682 51,830,583 49,361,670 (2,468,913)
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
For the Fiscal Year Ended December 31, 2018
City of Carmel, Indiana
(Continued)
Continued on next page.
Budgeted Amounts
100
Variance
Actual With Final
Budgetary Budget
Basis Positive
Original Final Amounts (Negative)
Expenditures (continued):
Current (continued):
Culture and recreation:
Parks Department:
Personal services 2,211,000 2,211,000 2,080,022 (130,978)
Supplies 132,513 132,513 125,082 (7,431)
Other services and charges 914,399 914,399 845,050 (69,349)
Capital outlay 16,187 16,187 15,811 (376)
Total culture and recreation 3,274,098 3,274,098 3,065,965 (208,133)
Economic Development:
Redevelopment Department:
Personal services 244,203 416,167 363,896 (52,271)
Supplies 1,600 5,600 4,123 (1,477)
Other services and charges 325,142 149,178 147,405 (1,773)
Capital outlay 2,016 2,016 2,017 1
Total economic development 572,961 572,961 517,441 (55,520)
Transfers to nonmajor funds
treated as expenditures on a budgetary basis - - 452,364 452,364
Other Expenditure - - 236,427 236,427
Total expenditures, budgetary basis 98,138,276$ 98,974,486$ 91,489,354 (7,485,132)$
Increase in accrued liabilities:
Accounts payable (1,189,709)
Accrued payroll and withholdings payable 15,022
Transfers to other funds (14,937,049)
Total expenditures reported on the
Statement of Revenues and Expenditures 75,377,618$
Budgeted Amounts
For the Fiscal Year Ended December 31, 2018
(Continued)
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
GENERAL FUND
101
City of Carmel, Indiana
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
December 31, 2018
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, Deferral Fund, 2016 Property Tax Bond Fund, Storm
Water Fund, User Fee Fund, Court Records Prepetuation Fund, Parks Program Fund, Drug Task Force
Fund, Ambulance Capital Fund, Judicial Salary Fund, Parks Monon Fund, Parks Facilities Fund, Public
Defender Fund, Illinois Street Construction Fund, and Center Green Ice Nonreverting 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. Revenue budgets
represent the most recent estimates available to the Mayor and Council at that time. Final revenue budgets
represent the estimates available one year later, when the subsequent budget is adopted.
The appropriated budget is prepared by fund, department, character, and/or object. Transfers of
appropriations require the approval of the Common Council. The legal level of budgetary control (i.e., the
level at which expenditures may not legally exceed appropriations) is the character and/or object.
Appropriations in all budgeted funds lapse at the end of the fiscal year unless they are encumbered.
Encumbrances are contractual obligations related to unperformed (executory) contracts for goods or
services (i.e., purchase orders, contracts, and commitments). Encumbrance accounting is utilized to the
extent necessary to assure effective budgetary control and accountability and to facilitate effective cash
planning and control.
The basis of accounting for the budget, and the actual revenues and expenditures provided for
comparison, is the cash basis, modified only by the addition of encumbrances to appropriations to arrive
at the total budget. Encumbrances are not added to actual expenditures because utilization of
encumbrances is optional at the managerial level.
102
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS - 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 enhance the City’s ability to respond to hazardous waste emergencies.
The Parks Program Fund accounts for certain fees collected in accordance with inter-local governmental agreements
and required to be used for parks and recreation programs.
The Parks Monon Fund accounts for certain collected in accordance with inter-local governmental agreements and
required to be used to support the redevelopment of the former Monon Railroad track line as a recreational trail.
The Parks Facility Fund accounts for fees collected from program participants and shall be used for the purchase,
development, and/or rehabilitation of park facilities.
The Local Road and Street Fund accounts for gasoline taxes and other revenues collected by the State of Indiana and
distributed to the City in accordance with a statutory formula, required to be used for certain road and street contracts.
The Deferral Fund accounts for certain fees paid by offenders to defer their cases to a non-criminal process, required
by law to be used for certain public safety purposes.
The User Fee Fund accounts for the City’s share of certain fee revenue collected from participants in certain public
safety and criminal justice programs, and other court-related programs, required by law to be used for certain public
safety and court-related purposes.
The Barrett Law and Barrett Law Surplus Funds account for certain payments collected from property owners who
benefit from specific projects that affect their property, required to be used to cover debt service on those projects.
The Storm Water Fund accounts for monies received for user charges restricted for drainage projects.
The 4CDC Operating Fund accounts for the rental and maintenace operations of the 4CDC office building.
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.
The Health Self Insurance Fund accounts for the City's employee healthcare self-insurance program.
The Workers Compensation Fund accounts for the City's workers' compensation programs.
Continued on next page.
103
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
The Support for the Arts Fund accounts for donations and grants received to be spent on arts programs and
engagement.
The Keystone Non-Reverting Fund accounts for amounts accumulated for certain infrastructure projects.
The 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 Funds 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 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.
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.
Continued on next page.
104
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
The Economic Development Fund accounts for expenditures related to projects promoting economic development.
Financing is provided by state grants and loan payments. Expenditures include grants and related expenses.
The Housing Authority Fund accounts for expenditures related to the provision of affordable housing programs to
eligible renters within the City.
The Drug Task Force Fund accounts for donations to the City for various expenditures relating to this educational
program.
The Thoroughfare Fund accounts for amounts accumulated for certain infrastructure projects.
The Levy Excess Fund accounts for monies collected from property taxes that exceed the City's legally-adopted levy.
Proceeds are used to offset future property tax levies.
The Grant Fund is used to account for grant resources received from various local, state, and federal agencies and
organizations. The use of these resources is restricted to a particular function of the City by each grantor.
Capital Projects Funds - used to account for revenues and other financing sources restricted or committed to
the acquisition of capital assets:
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 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
The Park Capital Fund accounts for certain fees collected in accordance with inter-local governmental agreements
and required to be used for capital projects for parks and recreation.
The Cumulative Capital Improvement Fund accounts for cigarette taxes and other revenues collected by the State of
Indiana and distributed to the City in accordance with a statutory formula, required primarily to be used for certain
road and street contracts.
The Cumulative Capital Sewer Fund accounts for financial resources for the construction or repairing of storm
sewers. Financing is provided by a dedicated property tax levy.
The Cumulative Capital Development Fund accounts for a property tax levy established and imposed for the sole
purpose of funding certain types of capital acquisitions and the payment of debt service for such acquisitions.
The Illinois Street Construction Fund accounts for certain payments in lieu of taxes required by contract with the
payor to be used for certain capital projects.
Continued on next page.
105
City of Carmel, Indiana
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
The Old Town/126th Street Construction Fund accounts for the accumulation of resources for certain community
improvement projects.
The Capital Lease Fund accounts for the accumulation of resources for certain capital leases.
The 2016 Property Tax Bond Construction Funds 1 - 13 account for the proceeds of thirteen separate street projects
financed by property tax, issued for the purpose of street improvement and construction.
The 2017 A Bond Construction Fund is a capital projects fund that accounts for the proceeds of a bond expected to be
paid from tax increment revenue.
The 2018 CMBC Bond Construction Fundis 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.
106
Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street Deferral User Fee Barrett Law Barrett Law Surplus Storm Water 4CDC Operating Fund Motor Vehicle Highway Fund ASSETS:Cash and investments 2,444,300$ $ 30,305 $ 3,841,547 3,485,724$ 131,446$ 10,670,709$ 322,811$ 160,539$ 6$ $ 166,369 $ 20,913,928 $ 142,938 3,220,292$ Property tax receivable- - - - - - - - - - - - 243,483 Due from other funds- - - - - - - - - - - - 58,378 Intergovernmental receivables- - - - - - - - - - - - 351,999 Accounts receivable- - - - - - - - - - - 4,076 - Total assets2,444,300 30,305 3,841,547 3,485,724 131,446 10,670,709 322,811 160,539 6 166,369 20,913,928 147,014 3,874,152 LIABILITIES:Accounts payable10,983 - 49,431 15,781 50 - - - - - - 20,148 2,283,512 Claims payable- - - - - - - - - - - - - Due to other funds- - - - - - - - - - 58,378 - - Accrued payroll- - 114,790 103,071 - - 2,177 - - - - - 325,280 Total liabilities10,983 - 164,221 118,852 50 - 2,177 - - - 58,378 20,148 2,608,792 DEFERRED INFLOW OF RESOURCES: Unavailable revenue- - - - - - - - - - - - 243,483 FUND BALANCE:Restricted:General government- - - - - - - - - - - - - Public safety- 30,305 - - - - 320,634 160,539 - - - - - Highways and streets- - - - - 10,670,709 - - - - 20,855,550 - 1,021,877 Drainage and other capital assets- - - - - - - - 6 166,369 - - - Economic development- - - - - - - - - - - 126,866 - Culture and recreation2,433,317 - 3,677,326 3,366,872 131,396 - - - - - - - - Committed:General government- - - - - - - - - - - - - Public safety- - - - - - - - - - - - - Highways and streets- - - - - - - - - - - - - Drainage and other capital assets- - - - - - - - - - - - - Economic development- - - - - - - - - - - - - Unassigned- - - - - - - - - - - - - TOTAL FUND BALANCES2,433,317 30,305 3,677,326 3,366,872 131,396 10,670,709 320,634 160,539 6 166,369 20,855,550 126,866 1,021,877 TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES2,444,300$ 30,305$ 3,841,547$ 3,485,724$ 131,446$ 10,670,709 322,811$ 160,539$ 6$ 166,369$ 20,913,928$ 147,014$ 3,874,152$ Continued on next page.Special Revenue FundsCity of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018107
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES MIHP Health Self Insurance Workers Comp Support for the Arts Keystone Non-Reverting Bicycle Facilities Non-Reverting Center Green Ice Non-Reverting Events & Festival Non-Reverting Code Enforcement Non-Reverting Urban Forestry Clerk's Record Perpetuation Court Interpreter 11,023$ 3,711,875$ 660,226$ 19,134$ 131,438$ 12,439$ 358,976$ 40,426$ 10,088$ 71,191$ 243,412$ 61$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11,023 3,711,875 660,226 19,134 131,438 12,439 358,976 40,426 10,088 71,191 243,412 61 - 67,585 - - - - - - - - - - - 510,271 - - - - - - - - - - - - - - - - - - - - - - 412 - - - - - - - - - - - 412 577,856 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 243,412 - 10,611 - - - - - - - - - - 61 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 71,191 - - - 3,134,019 660,226 - - - - - - - - - - - - - - - - - - - - - - - - - 131,438 12,439 358,976 40,426 10,088 - - - - - - - - - - - - - - - - - - 19,134 - - - - - - - - - - - - - - - - - - - - 10,611 3,134,019 660,226 19,134 131,438 12,439 358,976 40,426 10,088 71,191 243,412 61 11,023$ 3,711,875$ 660,226$ 19,134$ 131,438$ 12,439$ 358,976$ 40,426$ 10,088$ 71,191$ 243,412$ 61$ Continued on next page.Special Revenue FundsCity of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018(Continued)108
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Public Defender Judicial Salary Fees Historic Preservation Fund Fire Gift Police Gift Parks Gift Community Relations Gift RedevelopmentCommission Gift Economic Development Housing Authority Drug Task Force Thoroughfare 7,721$ 157,630$ 65,000$ 10,191$ 30,490$ 38,050$ 80,773$ 34,432$ 78,565$ 58,865$ 741,461$ 986,152$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,721 157,630 65,000 10,191 30,490 38,050 80,773 34,432 78,565 58,865 741,461 986,152 - - - - - - - - - - 569 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 569 - - - - - - - - - - - - - - - - - - - 80,773 34,432 - - - - 7,721 157,630 - 10,191 30,490 - -- - - 740,892 - - - - - - - -- - - - 986,152 - - - - - - - - - - - - - - - - - - - - 78,565 58,865 - - - - - - - 38,050 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 65,000 - - - - - - - - - - - - - - - - - - - - - 7,721 157,630 65,000 10,191 30,490 38,050 80,773 34,432 78,565 58,865 740,892 986,152 7,721$ 157,630$ 65,000$ 10,191$ 30,490$ 38,050$ 80,773$ 34,432$ 78,565$ 58,865$ 741,461$ 986,152$ Continued on next page.City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018(Continued)Special Revenue Funds109
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Levy Excess Grant Total Special Revenue Funds Bond Bank Project Fund Redevelopment Authority Capital Projects Fund Ambulance Park Capital Cumulative Capital Improvement Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction -$ 711,693$ 53,802,226$ $ 3,511,508 3,654,267$ 1,216,953$ 143,346$ 340,322$ $ 286,197 $ 365,033 $ 87,020 459$ - - 243,483 - - - - - - 115,834 - - - - 58,378 - - - - - - - - - - - 351,999 - - - - - - - - - - - 4,076 - - 111,271 - - - - - - - 711,693 54,460,162 3,511,508 3,654,267 1,328,224 143,346 340,322 286,197 480,867 87,020 459 - - 2,448,059 - - - - - - - - - - - 510,271 - - - - - - - - - - - 58,378 - - - - - - - - - - - 545,730 - - - - - - - - - - - 3,562,438 - - - - - - - - - - - 243,483 - - 92,726 - - - 115,834 - - - - 358,617 - - - - - - - - - - 711,693 2,180,767 - - - - - - - - - - 33,534,288 - - - - - - - 87,020 - - - 166,375 687,592 - - - - 286,197 365,033 - - - - 264,296 2,823,916 3,654,267 - - - - - - 459 - - 9,718,152 - - - 143,346 - - - - - - - 3,794,245 - - - - - - - - - - - -- - 1,235,498 - - - - - - - - 553,367 - - - - 340,322 - - - - - - - - - - - - - - - - - - 84,134 - - - - - - - - - - - - - - - - - - - - - - 711,693 50,654,241 3,511,508 3,654,267 1,235,498 143,346 340,322 286,197 365,033 87,020 459 -$ 711,693$ 54,460,162$ 3,511,508$ 3,654,267$ 1,328,224$ 143,346$ 340,322$ 286,197$ 480,867$ 87,020$ 459$ Continued on next page.City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018(Continued)Capital Projects FundsSpecial Revenue Funds110
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES Capital Lease 2016 Property Tax Bond Construction 1 2016 Property Tax Bond Construction 2 2016 Property Tax Bond Construction 3 2016 Property Tax Bond Construction 4 2016 Property Tax Bond Construction 5 2016 Property Tax Bond Construction 6 2016 Property Tax Bond Construction 7 2016 Property Tax Bond Construction 8 2016 Property Tax Bond Construction 9 2016 Property Tax Bond Construction 10 2016 Property Tax Bond Construction 11 16,239$ 6,086$ 156,006$ 1,730,535$ 68,987$ 44,449$ 104,701$ -$ 122,437$ 49,018$ 1,530,139$ 1,359,468$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16,239 6,086 156,006 1,730,535 68,987 44,449 104,701 - 122,437 49,018 1,530,139 1,359,468 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16,239 - - - - - - - - - - - - 6,086 156,006 1,730,535 68,987 44,449 104,701 - 122,437 49,018 1,530,139 1,359,468 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 16,239 6,086 156,006 1,730,535 68,987 44,449 104,701 - 122,437 49,018 1,530,139 1,359,468 16,239$ 6,086$ 156,006$ 1,730,535$ 68,987$ 44,449$ 104,701$ -$ 122,437$ 49,018$ 1,530,139$ 1,359,468$ Continued on next page.For the Fiscal Year Ended December 31, 2018NONMAJOR GOVERNMENTAL FUNDSCity of Carmel, IndianaBALANCE SHEETCapital Projects Funds(Continued)111
ASSETS:Cash and investmentsProperty tax receivableDue from other fundsIntergovernmental receivablesAccounts receivable Total assetsLIABILITIES:Accounts payableClaims payableDue to other fundsAccrued payroll Total liabilitiesDEFERRED INFLOW OF RESOURCES: Unavailable revenueFUND BALANCE:Restricted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentCulture and recreationCommitted:General governmentPublic safetyHighways and streetsDrainage and other capital assetsEconomic developmentUnassigned TOTAL FUND BALANCES TOTAL LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, ANDFUND BALANCES 2016 Property Tax Bond Construction 12 2016 Property Tax Bond Construction 13 2017 A Bond Construction Fund 2018 CMBC Bond Construction Fund Total Capital Projects Funds Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds 196,987$ 27,840$ 864,004$ 3,745,294$ 19,627,295$ 3,853$ 720,601$ 21,434$ 745,888$ 74,175,409$ - - - - 115,834 - 86,644 44,712 131,356 490,673 - - - - - - - - - 58,378 - - - - - - - - - 351,999 - - - - 111,271 - - - - 115,347 196,987 27,840 864,004 3,745,294 19,854,400 3,853 807,245 66,146 877,244 75,191,806 - - - - - - - - - 2,448,059 - - - - - - - - - 510,271 - - - - - - - - - 58,378 - - - - - - - - - 545,730 - - - - - - - - - 3,562,438 - - - - 208,560 - 86,644 44,712 131,356 583,399 - - - - - - - - - 358,617 - - - - 16,239 - - - - 2,197,006 196,987 27,840 864,004 - 6,347,677 3,853 720,601 21,434 745,888 40,627,853 - - - - 1,338,822 - - - - 1,505,197 - - - 3,745,294 10,223,936 - - - - 10,488,232 - - - - 143,346 - - - - 9,861,498 - - - - - - - - - 3,794,245 - - - - 1,235,498 - - - - 1,235,498 - - - - 340,322 - - - - 893,689 - - - - - - - - - - - 84,134 - - - - - - - - - -196,987 27,840 864,004 3,745,294 19,645,840 3,853 720,601 21,434 745,888 71,045,969 196,987$ 27,840$ 864,004$ 3,745,294$ 19,854,400$ 3,853$ 807,245$ 66,146$ 877,244$ 75,191,806$ City of Carmel, IndianaBALANCE SHEETNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018(Continued)Debt Service FundsCapital Projects Funds112
Park Impact Fee Hazardous Material Parks Program Parks Monon Parks Facility Local Road & Street Deferral User Fee Barrett Law Barrett Law Surplus Storm Water 4CDC Operating Fund Motor Vehicle Highway Fund REVENUES:Charges for services 1,148,884$ 691$ 4,210,871$ 6,197,202$ 128,501$ -$26,426$ 24,960$ -$ -$2,765,970$ 1,082,838$ -$ Investment income46,179 325 42,275 34,840 1,224 - 3,581 ---501,165 - - Licenses and permits- -- ----63,228 --- - - Other- - 1,218 - 1,370 --11 --187,404 121,506 370,522 Other taxes- -- -------- - 749,261 Contributions- - 1,707 17,786 500 ------ - - General property taxes- -- -------- - 7,240,721 Intergovernmental:Grants- -- -------- - -Other- -- -------- - 4,056,654 Shared revenue- -- --2,163,115 ----- - 2,873 Total revenues1,195,063 1,016 4,256,071 6,249,828 131,595 2,163,115 30,007 88,199 --3,454,539 1,204,344 12,420,031 EXPENDITURES:Current:General government- -- -------- 669,714 -Public safety- -- ---55,159 112,414 --- - -Streets and other infrastructure- -- -------- - 13,784,807 Economic development- -- -------- 230,616 -Culture and recreation- -3,808,900 5,670,091 ------- - -Debt service:-Principal- -- -------- - -Interest- -- -------- - -Capital outlay:-General government- -- -------- - -Public safety- -- -------- - - Streets and other infrastructure- -- --4,894,067 ----6,022,717 - 459,265 Economic development- -- -------- - -Culture and recreation4,355,875 -- -112,902 ------ - - Total expenditures4,355,875 -3,808,900 5,670,091 112,902 4,894,067 55,159 112,414 --6,022,717 900,330 14,244,072 Excess (deficiency) of revenues over (under) expenditures(3,160,812) 1,016 447,171 579,737 18,693 (2,730,952) (25,152) (24,215) --(2,568,178) 304,014 (1,824,041) Other financing sources (uses):Transfers in, governmental funds- -- --234,130 ----- - 678,346 Transfers (out), governmental funds- -- -------(3,049,336) (207,500) (100,000) Bond issuance - principal- -- -------- - -Bond issuance - premium- -- -------- - -Capital lease proceeds- -- -------- - - Total other financing sources- -- --234,130 ----(3,049,336) (207,500) 578,346 NET CHANGE IN FUND BALANCES(3,160,812) 1,016 447,171 579,737 18,693 (2,496,822) (25,152) (24,215) --(5,617,514) 96,514 (1,245,695) FUND BALANCES: beginning5,594,129 29,289 3,230,155 2,787,135 112,703 13,167,531 345,786 184,754 6 166,369 - - 2,267,572 Restatement- -- -------26,473,064 30,352 -FUND BALANCES: beginning5,594,129 29,289 3,230,155 2,787,135 112,703 13,167,531 345,786 184,754 6 166,369 26,473,064 30,352 2,267,572 FUND BALANCES: ending2,433,317$ 30,305$ 3,677,326$ 3,366,872$ 131,396$ 10,670,709$ 320,634$ 160,539$ 6$ 166,369$ 20,855,550$ 126,866$ 1,021,877$ Continued on next page.For the Fiscal Year Ended December 31, 2018Special RevenueCity of Carmel, IndianaNONMAJOR GOVERNMENTAL FUNDSSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES113
REVENUES:Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental:GrantsOtherShared revenue Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers in, governmental fundsTransfers (out), governmental fundsBond issuance - principalBond issuance - premiumCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningRestatementFUND BALANCES: beginningFUND BALANCES: ending MIHP Health Self Insurance Workers Comp Support of the Arts Keystone Non-Reverting Bicycle Facilities Non-Reverting Center Green Ice Non-Reverting Events & Festival Non-Reverting Code Enforcement Non-Reverting Urban Forestry Clerk's Record Perpetuation Court Interpreter -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 143 - - - 1,414 68 2,063 316 88 - - 1 - - - - - - - - - - - - - - 465,152 - - 12,371 401,802 77,368 10,000 - 39,360 - - - - - - - - - - - - - 1,765 - - - - - - - - 5,400 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1,908 - 465,152 - 1,414 12,439 403,865 77,684 10,088 5,400 39,360 1 - 596,732 328,592 - - - - - - - 4,363 - 5,081 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 44,889 37,258 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 5,081 596,732 328,592 - - - 44,889 37,258 - - 4,363 - (3,173) (596,732) 136,560 - 1,414 12,439 358,976 40,426 10,088 5,400 34,997 1 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (3,173) (596,732) 136,560 - 1,414 12,439 358,976 40,426 10,088 5,400 34,997 1 13,784 3,730,751 523,666 19,134 130,024 - - - - 65,791 208,415 60 - - - - - - - - - - - - 13,784 3,730,751 523,666 19,134 130,024 - 65,791 208,415 60 10,611$ 3,134,019$ 660,226$ 19,134$ 131,438$ 12,439$ 358,976$ 40,426$ 10,088$ 71,191$ 243,412$ 61$ Continued on next page.For the Fiscal Year Ended December 31, 2018Special Revenue(Continued)NONMAJOR GOVERNMENTAL FUNDSCity of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES114
REVENUES:Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental:GrantsOtherShared revenue Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers in, governmental fundsTransfers (out), governmental fundsBond issuance - principalBond issuance - premiumCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningRestatementFUND BALANCES: beginningFUND BALANCES: ending Public Defender Judicial Salary Fees Historic Preservation Fund Fire Gift Police Gift Parks Gift Community Relations Gift RedevelopmentCommission Gift Economic Development Housing Authority Drug Task Force Thoroughfare4,328$ 36,551$ -$-$-$ -$-$-$-$-$-$103,553$ --- 190 265402 1,130 227 -- 9,218 8,736 ----- ---------- 560 - - 9,219 - 30,000 - 36,181 ------ ---------- 21,444 26,968 2,821 59,073 35,357 --------- ------------ -----286,135 ------ ------------ -------4,328 36,551 - 22,194 27,233 3,223 69,422 35,584 30,000 -331,534 112,289 ----- -------5,750 48,865 - 40,431 30,898 -----232,663 ------ ------------ ------------ 1,530 131,214 1,152 ---------- ------------ ------------- ------------ ------------ ------------ ------------ -------5,750 48,865 - 40,431 30,898 1,530 131,214 1,152 --232,663 -(1,422) (12,314) -(18,237)(3,665) 1,693 (61,792) 34,432 30,000 - 98,871 112,289 -- 65,000 -- - 5,000 ---------- ------------ ------------ ------------ --------- 65,000 -- - 5,000 -----(1,422) (12,314) 65,000 (18,237) (3,665) 1,693 (56,792) 34,432 30,000 - 98,871 112,289 9,143 169,944 - 28,428 34,155 36,357 137,565 - 48,565 58,865 642,021 873,863 ----- -------9,143 169,944 - 28,428 34,155 36,357 137,565 - 48,565 58,865 642,021 873,863 7,721$ 157,630$ 65,000$ 10,191$ 30,490$ 38,050$ 80,773$ 34,432$ 78,565$ 58,865$ 740,892$ 986,152$ Continued on next page.For the Fiscal Year Ended December 31, 2018Special Revenue(Continued)NONMAJOR GOVERNMENTAL FUNDSCity of Carmel, IndianaSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES115
REVENUES:Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental:GrantsOtherShared revenue Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers in, governmental fundsTransfers (out), governmental fundsBond issuance - principalBond issuance - premiumCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningRestatementFUND BALANCES: beginningFUND BALANCES: endingCapital Projects Funds Levy Excess Grant Total Special Revenue Funds Bond Bank Project Fund Redevelopment Authority Capital Projects Fund Ambulance Parks Capital Cumulative Capital Improvement Cumulative Capital Sewer Cumulative Capital Development Illinois Street Construction Old Town/126th Construction -$-$15,730,775$ -$-$ 1,609,478$ 2,753$ -$-$-$-$-$ --653,85040,938 55,111 10,142 -------- 63,228-- - --------1,764,044- 70,238- ----698 ---749,261--- -203,246 -356,451 ---17,500 190,321--- --------7,240,721--- ---3,447,614 ---4,072,488 4,358,623-- - --------4,056,654-- - --------2,165,988-- - --- 1,367 ---4,089,988 36,973,465 40,938 125,349 1,619,620 2,753 203,246 -3,805,432 698 ---1,599,401-- - -------3,902,544 4,433,805-- 1,109,809 --------13,784,807-- - ---302,128 ----230,6166,063 - - --------9,695,034-- - -------- --- 3,433,000 - - --------- 12,738,117 - - -------- --- -- - --------- -- - --------11,376,049 -1,349,393- -177,640 - 25,470 8,043 ---- --- --------4,468,777--- 283,976 ------3,902,544 45,588,489 16,177,180 1,349,393 1,109,809 283,976 177,640 -327,598 8,043 --187,444 (8,615,024) (16,136,242) (1,224,044) 509,811 (281,223) 25,606 -3,477,834 (7,345) ---982,47614,234,891 59,909 - ----153,234 --(53,831) (3,410,667)(1,251,090) (3,772) - ---(3,409,331) ----- -- - -------- -- - -------- -- - -------(53,831)(2,428,191) 12,983,801 56,137 - ---(3,409,331) 153,234 --133,613 (11,043,215) (3,152,441) (1,167,907) 509,811 (281,223) 25,606 - 68,503 145,889 --578,080 35,194,040 6,663,949 1,448,712 725,687 424,569 314,716 286,197 296,530 (58,869) 459 --26,503,416 -3,373,462- -------578,080 61,697,456 6,663,949 4,822,174 725,687 424,569 314,716 286,197 296,530 (58,869) 459 -$ 711,693$ 50,654,241$ 3,511,508$ 3,654,267$ 1,235,498$ 143,346$ 340,322$ 286,197$ 365,033$ 87,020$ 459$ Continued on next page.(Continued)For the Fiscal Year Ended December 31, 2018City of Carmel, IndianaNONMAJOR GOVERNMENTAL FUNDSSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES116
REVENUES:Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental:GrantsOtherShared revenue Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers in, governmental fundsTransfers (out), governmental fundsBond issuance - principalBond issuance - premiumCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningRestatementFUND BALANCES: beginningFUND BALANCES: ending Capital Lease 2016 Prop. Tax Bond - Const. 1 2016 Prop. Tax Bond - Const. 2 2016 Prop. Tax Bond - Const. 3 2016 Prop. Tax Bond - Const. 4 2016 Prop. Tax Bond - Const. 5 2016 Prop. Tax Bond - Const. 6 2016 Prop. Tax Bond - Const. 7 2016 Prop. Tax Bond - Const. 8 2016 Prop. Tax Bond - Const. 9 2016 Prop. Tax Bond - Const. 10 2016 Prop. Tax Bond - Const. 11 -$-$-$-$-$-$-$-$-$-$-$-$ 9728 2,715 25,607 1,981 1,226 2,676 408 2,410 1,475 26,423 24,000 ------------36 -----------------------------------------------------------------------------------45 728 2,715 25,607 1,981 1,226 2,676 408 2,410 1,475 26,423 24,000 ------------------------------------------------------------------------------------392,224 -----------1,736,138 -----------301,859 104,659 121,858 69,225 869,628 175,619 208,005 148,560 122,041 197,387 44,392 74,364 ------------202,356 -----------2,632,577 104,659 121,858 69,225 869,628 175,619 208,005 148,560 122,041 197,387 44,392 74,364 (2,632,532) (103,931) (119,143) (43,618) (867,647) (174,393) (205,329) (148,152) (119,631) (195,912) (17,969) (50,364) ----- 57,500 ------------(57,500) -----------------------------2,555,639 -----------2,555,639 ---- 57,500 (57,500) -----(76,893) (103,931) (119,143) (43,618) (867,647) (116,893) (262,829) (148,152) (119,631) (195,912) (17,969) (50,364) 940,731 110,017 275,149 1,774,153 936,634 161,342 367,530 148,152 242,068 244,930 1,548,108 1,409,832 (847,599) -----------93,132 110,017 275,149 1,774,153 936,634 161,342 367,530 148,152 242,068 244,930 1,548,108 1,409,832 16,239$ 6,086$ 156,006$ 1,730,535$ 68,987$ 44,449$ 104,701$ -$ 122,437$ 49,018$ 1,530,139$ 1,359,468$ Continued on next page.For the Fiscal Year Ended December 31, 2018Capital Projects Funds(Continued)NONMAJOR GOVERNMENTAL FUNDSSTATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESCity of Carmel, Indiana117
REVENUES:Charges for services Investment income Licenses and permits Other Other taxes Contributions General property taxes Intergovernmental:GrantsOtherShared revenue Total revenuesEXPENDITURES:Current:General governmentPublic safetyStreets and other infrastructureEconomic developmentCulture and recreationDebt service:PrincipalInterestCapital outlay:General governmentPublic safety Streets and other infrastructureEconomic developmentCulture and recreation Total expendituresExcess (deficiency) of revenues over (under) expendituresOther financing sources (uses):Transfers in, governmental fundsTransfers (out), governmental fundsBond issuance - principalBond issuance - premiumCapital lease proceeds Total other financing sourcesNET CHANGE IN FUND BALANCESFUND BALANCES: beginningRestatementFUND BALANCES: beginningFUND BALANCES: ending 2016 Prop. Tax Bond - Const. 12 2016 Prop. Tax Bond - Const. 13 2017 A Bond Construction Fund 2018 CMBC Bond Construction Fund Total Capital Projects Funds Lease Rental 2004 Road Bond 2016 Property Tax Bond Fund Total Debt Service Funds Total Nonmajor Governmental Funds -$-$-$-$ 1,612,231$ -$ -$ -$ -$ 17,343,006$ 13,867 1,706 24,870 102,643 338,935 - - - - 992,785 ---- -- - - - 63,228 ---- 70,972 - - - - 1,835,016 ---- 559,697 - 266,626 137,590 404,216 1,713,174 ---- -- - - - 190,321 ---3,447,614 - 2,676,367 1,383,104 4,059,471 14,747,806 ---- -- - - - 4,358,623 ---- -- - - - 4,056,654 ---- 1,367 - 1,0215281,5492,168,904 13,867 1,706 24,870 102,643 6,030,816 - 2,944,014 1,521,222 4,465,236 47,469,517 ---- -- - - - 1,599,401 ---- 1,109,809 - - - - 5,543,614 ---- 302,128 - - - - 14,086,935 ---- 6,063 - - - - 236,679 ---- -- - - - 9,695,034 ----- 3,433,000 - - - - 3,433,000 ---151,097 12,889,214 - - - - 12,889,214 ----- 392,224 - - - - 392,224 ---- 1,736,138 - - - - 1,736,138 1,204,112 339,884 -- 5,542,139 - - 742,355 742,355 17,660,543 --2,375,137 9,858,137 12,233,274 - - - - 12,233,274 ---- 486,332 - - - - 4,955,109 1,204,112 339,884 2,375,137 10,009,234 38,130,321 - - 742,355 742,355 84,461,165 (1,190,245) (338,178) (2,350,267) (9,906,591) (32,099,505) - 2,944,014 778,867 3,722,881 (36,991,648) ---877,798 15,383,332 - - - - 16,365,808 ---(16,116) (4,737,809) - (2,844,000)(741,175) (3,585,175) (11,733,651) ---12,546,663 12,546,663 - - - - 12,546,663 ---243,540 243,540 - - - - 243,540 ---- 2,555,639 - - - - 2,555,639 ---13,651,885 25,991,365 - (2,844,000)(741,175) (3,585,175) 19,977,999 (1,190,245) (338,178) (2,350,267) 3,745,294 (6,108,140) - 100,014 37,692 137,706 (17,013,649) 1,387,232 366,018 3,214,271 - 23,228,1173,853 620,587 (16,258) 608,182 59,030,339 ---- 2,525,863 - - - - 29,029,279 1,387,232 366,018 3,214,271 - 25,753,9803,853 620,587 (16,258) 608,182 88,059,618 196,987$ 27,840$ 864,004$ 3,745,294$ 19,645,840$ 3,853$ 720,601$ 21,434$ 745,888$ 71,045,969$ STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCESNONMAJOR GOVERNMENTAL FUNDSFor the Fiscal Year Ended December 31, 2018Capital Projects Funds(Continued)Debt Service FundsCity of Carmel, Indiana118
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property taxes 6,596,058$ 7,244,489$ 7,240,721$ (3,768)$
MVHF distribution 4,450,185 4,060,452 4,056,654 (3,798)
Miscellaneous 1,321,271 1,345,247 1,117,199 (228,048)
Total Revenues 12,367,514 12,650,188 12,414,574 (235,614)
EXPENDITURES:
Engineering:
Personal services 1,762,750 1,762,750 1,661,610 (101,140)
Supplies 12,400 12,400 12,187 (213)
Other services and charges 524,603 544,443 277,143 (267,300)
Capital outlay 89,444 97,661 35,809 (61,852)
Street Department:- - -
Personal services 5,747,946 5,773,995 5,350,896 (423,099)
Supplies 2,660,293 2,648,183 1,559,033 (1,089,150)
Other services and charges 3,685,837 4,145,739 3,444,307 (701,432)
Capital outlay 1,282,571 982,571 521,037 (461,534)
Total Motor Vehicle Highway Fund 15,765,844$ 15,967,742$ 12,862,022$ (3,105,720)$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Interest 113$ 119$ 310$ 191$
Miscellaneous - - -
State assumption of pension payments 641,596 641,596 584,282 (57,314)
Employee contribution - - - -
Total Revenues 641,709 641,715 584,592 (57,123)
EXPENDITURES:
Personal services 641,596 641,596 605,214 (36,382)
Supplies 150 150 -(150)
Other services and charges 8,000 8,000 - (8,000)
Capital outlay - - - -
Total Fire Pension Fund 649,746$ 649,746$ 605,214$ (44,532)$
Continued on next page.
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
Motor Vehicle Highway Fund
Budgeted Amounts
Budgeted Amounts
Fire Pension Fund
119
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Interest 505$ 47$ 1,203$ 1,156$
Miscellaneous - - - -
State assumption of pension payments 586,842 586,842 564,928 (21,914)
Employee contribution - - - -
Total Revenues 587,347 586,889 566,131 (20,758)
EXPENDITURES:
Personal services 586,842 586,842 582,141 (4,701)
Supplies 300 300 - (300)
Other services and charges 5,200 5,200 100 (5,100)
Capital outlay - - - -
Total Police Pension Fund 592,342$ 592,342$ 582,241$ (10,101)$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Local road & street distribution 2,284,357$ 2,393,058$ 2,163,115$ (229,943)$
Miscellaneous - - -
Interest 6,688 - - -
Total Revenues 2,291,045 2,393,058 2,163,115 (229,943)
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges 7,995,106 8,238,837 4,822,703 (3,416,134)
Capital outlay 81,900 81,900 71,364 (10,536)
Total Local Road & Street Fund 8,077,006$ 8,320,737$ 4,894,067$ (3,426,670)$
Continued on next page.
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
Local Road & Street Fund
Budgeted Amounts
Budgeted Amounts
(Continued)
Police Pension Fund
120
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Cigarette tax distribution 219,007$ 221,126$ 203,246$ (17,880)$
Interest - - - -
Other - - - -
Total Revenues 219,007 221,126 203,246 (17,880)
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges 456,700 456,700 173,784 (282,916)
Capital outlay 53,882 53,882 3,921 (49,961)
Total Cumulative Capital Improvement Fund 510,582$ 510,582$ 177,705$ (332,877)$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax 3,401,401$ 3,446,474$ 3,447,614$ 1,140$
Interest - - - -
Commercial vehicle excise tax 735 1,452 1,367 (85)
Other 331,477 307,962 356,451 48,489
Total Revenues 3,733,613 3,755,888 3,805,432 49,544
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges 535,962 535,962 302,128 (233,834)
Capital outlay 90,567 90,567 25,470 (65,097)
Debt service 3,409,331 3,409,331 3,409,331 -
Total Cumulative Capital Development Fund 4,035,860$ 4,035,860$ 3,736,929$ (298,931)$
Continued on next page.
Budgeted Amounts
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
(Continued)
City of Carmel, Indiana
Budgeted Amounts
Cumulative Capital Development Fund
Cumulative Capital Improvement Fund
121
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax 2,390,716$ 2,682,652$ 2,676,367$ (6,285)$
Interest - - - -
Commercial vehicle excise tax 463 1,069 1,021 (48)
Other 220,883 230,356 266,626 36,270
Total Revenues 2,612,062 2,914,077 2,944,014 29,937
EXPENDITURES:
Debt service 2,844,000 2,844,000 2,844,000 -
Total 2004 Road Bond 2,844,000$ 2,844,000$ 2,844,000$ -$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Deferral program fees 28,682$ 40,479$ 26,426$ (14,053)$
Interest 958 2,530 3,581 1,051
Other - - - -
Total Revenues 29,640 43,009 30,007 (13,002)
EXPENDITURES:
Personal services 64,396 122,921 47,257 (75,664)
Supplies 21,025 21,025 1,962 (19,063)
Other services and charges 110,229 112,229 4,460 (107,769)
Capital outlay 13,500 13,500 2,195 (11,305)
Total Deferral Fund 209,150$ 269,675$ 55,874$ (213,801)$
Continued on next page.
For the Fiscal Year Ended December 31, 2018
(Continued)
Deferral Fund
Budgeted Amounts
2004 Road Bond
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
122
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Property tax 1,373,521$ 1,384,363$ 1,383,104$ (1,259)$
Interest - - - -
Commercial vehicle excise tax 261 541 528 (13)
Other 120,368 114,663 137,590 22,927
Total Revenues 1,494,150 1,499,567 1,521,222 21,655
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges - - - -
Capital outlay - - - -
Debt service 1,483,530 1,483,530 1,483,530 -
Total 2016 Property Tax Bond Fund 1,483,530$ 1,483,530$ 1,483,530$ -$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Service charges and fees 3,135,141$ 3,135,141$ 2,765,970$ (369,171)$
Interest - - 501,165 501,165
Other - - 187,404 187,404
Total Revenues 3,135,141 3,135,141 3,454,539 319,398
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges 3,335,171 3,335,171 3,176,910 (158,261)
Capital outlay - - - -
Debt service - - - -
Total Storm Water Fund 3,335,171$ 3,335,171$ 3,176,910$ (158,261)$
Continued on next page.
(Continued)
Budgeted Amounts
Budgeted Amounts
2016 Property Tax Bond Fund
Storm Water Fund
For the Fiscal Year Ended December 31, 2018
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
123
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Fines and foreitures -$ -$ -$ -$
Permits 68,692 68,692 63,228 (5,464)
Charges for services 27,310 27,310 24,960 (2,350)
Other - - - -
Total Revenues 96,002 96,002 88,188 (7,814)
EXPENDITURES:
Personal services - - -
Supplies - - -
Other services and charges 125,000 125,000 101,318 (23,682)
Capital outlay - - -
Other - - 11,096 11,096
Total User Fee Fund 125,000$ 125,000$ 112,414$ (12,586)$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 43,657$ 39,963$ 39,360$ (603)$
Interest 87 - - -
Other - - - -
Total Revenues 43,744 39,963 39,360 (603)
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges 10,000 10,000 2,096 (7,904)
Capital outlay 45,000 45,000 2,267 (42,733)
Debt service - - - -
Total Court Records Prepetuation Fund 55,000$ 55,000$ 4,363$ (50,637)$
Continued on next page.
Budgeted Amounts
Court Records Prepetuation Fund
Budgeted Amounts
User Fee Fund
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
(Continued)
For the Fiscal Year Ended December 31, 2018
124
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 2,935,271$ 2,910,945$ 4,210,871$ 1,299,926$
Interest - - 42,275 42,275
Other 1,800 2,107 2,925 818
Total Revenues 2,937,071 2,913,052 4,256,071 1,343,019
EXPENDITURES:
Personal services 2,776,260 2,776,260 2,777,293 1,033
Supplies 247,000 247,000 273,168 26,168
Other services and charges 418,860 418,860 746,194 327,334
Capital outlay 5,000 5,000 20,871 15,871
Debt service - - - -
Total Parks Program Fund 3,447,120$ 3,447,120$ 3,817,526$ 370,406$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Intergovernmental 328,453$ 99,557$ 286,135$ 186,578$
Interest 2,647 4,824 9,218 4,394
Other 49,308 97,928 36,181 (61,747)
Total Revenues 380,408 202,309 331,534 129,225
EXPENDITURES:
Personal services - - - -
Supplies 7,600 7,600 3,209 (4,391)
Other services and charges 294,953 294,953 200,807 (94,146)
Capital outlay 58,500 58,500 31,204 (27,296)
Debt service - - - -
Total Drug Task Force Fund 361,053$ 361,053$ 235,220$ (125,833)$
Continued on next page.
Budgeted Amounts
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
(Continued)
Drug Task Force Fund
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
Parks Program Fund
125
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Ambulance fees 1,330,017$ 1,595,454$ 1,609,478$ 14,024$
Interest 1,517 3,288 10,142 6,854
Other - 382 - (382)
Total Revenues 1,331,534 1,599,124 1,619,620 20,496
EXPENDITURES:
Personal services - - - -
Supplies 113,453 113,453 109,284 (4,169)
Other services and charges - - 6,300 6,300
Capital outlay 1,442,248 1,442,248 987,957 (454,291)
Other - - 6,828 6,828
Total Ambulance Capital Fund 1,555,701$ 1,555,701$ 1,110,369$ (445,332)$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Fines and forfeitures - judicial salaries fees 40,723$ 37,413$ 36,551$ (862)$
Interest 311 - - -
Other - - - -
Total Revenues 41,034 37,413 36,551 (862)
EXPENDITURES:
Personal services - - - -
Supplies 24,000 24,000 8,830 (15,170)
Other services and charges 82,500 82,500 33,040 (49,460)
Capital outlay 22,403 22,403 6,995 (15,408)
Debt service - - - -
Total Judicial Salary Fund 128,903$ 128,903$ 48,865$ (80,038)$
Continued on next page.
Ambulance Capital Fund
Judicial Salary Fund
City of Carmel, Indiana
Budgeted Amounts
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
Budgeted Amounts
(Continued)
126
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 5,400,125$ 5,400,125$ 6,197,202$ 797,077$
Department fees 288,299 288,299 - (288,299)
Interest - - 34,840 34,840
Other - - 17,786 17,786
Total Revenues 5,688,424 5,688,424 6,249,828 561,404
EXPENDITURES:
Personal services 2,904,116 2,904,116 2,913,485 9,369
Supplies 450,900 450,900 469,968 19,068
Other services and charges 2,322,903 2,341,533 2,292,337 (49,196)
Capital outlay 75,000 75,000 106,122 31,122
Other - - 22,596 22,596
Total Parks Monon Fund 5,752,919$ 5,771,549$ 5,804,508$ 32,959$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Charges for services 42,259$ 38,859$ 128,501$ 89,642$
Department fees 36,670 49,660 - (49,660)
Interest 147 545 1,224 679
Other 360 950 1,870 920
Total Revenues 79,436 90,014 131,595 41,581
EXPENDITURES:
Personal services - - - -
Supplies 10,850 10,850 23,288 12,438
Other services and charges 39,335 39,335 51,161 11,826
Capital outlay - - 38,403 38,403
Debt service - - - -
Total Parks Facilities Fund 50,185$ 50,185$ 112,852$ 62,667$
Continued on next page.
NONMAJOR GOVERNMENTAL FUNDS
Parks Facilities Fund
Budgeted Amounts
For the Fiscal Year Ended December 31, 2018
(Continued)
BUDGETARY COMPARISON SCHEDULES
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
Parks Monon Fund
Budgeted Amounts
127
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Fines and forfeitures - public defender fees 2,410$ 3,295$ 4,328$ 1,033$
Interest 8 - - -
Other - - - -
Total Revenues 2,418 3,295 4,328 1,033
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges 6,000 6,000 5,750 (250)
Capital outlay - - - -
Debt service - - - -
Total Public Defender Fund 6,000$ 6,000$ 5,750$ (250)$
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Interest -$ -$ -$ -$
Other - - 698 698
Total Revenues - - 698 698
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges - - - -
Capital outlay 60,149 60,149 8,043 (52,106)
Debt service - - - -
Total Illinois Street Construction Fund 60,149$ 60,149$ 8,043$ (52,106)$
Continued on next page.
Illinois Street Construction Fund
Budgeted Amounts
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
Public Defender Fund
Budgeted Amounts
City of Carmel, Indiana
(Continued)
128
Actual Variance with
Budgetary Final Budget
Basis Positive
Original Final Amounts (Negative)
REVENUES:
Interest -$ -$ 2,063$ 2,063$
Other - - 401,802 401,802
Total Revenues - - 403,865 403,865
EXPENDITURES:
Personal services - - - -
Supplies - - - -
Other services and charges - 211,481 15,558 (195,923)
Capital outlay - - - -
Other - - 29,331 29,331
Total Center Green Ice Nonreverting Fund -$ 211,481$ 44,889$ (166,592)$
Budgeted Amounts
City of Carmel, Indiana
REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY COMPARISON SCHEDULES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended December 31, 2018
(Continued)
Center Green Ice Nonreverting Fund
129
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 firefighers hired
prior to May 1, 1977.
Agency funds - used to account for resources that are custodial in nature. They are amounts held by the
City on behalf of third parties. The City maintains the following agency funds:
The City Court Agency Fund accounts for certain collections made by municipal court for redistribution
to third parties.
The Payroll Agency Fund accounts for certain amounts withheld from the compensation of City
employees for redistribution to third parties.
130
1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust FundsASSETS:Cash and investments 131,361$ $ 5,405 $ 136,766 Receivable from State of Indiana48,777 50,662 99,439 Total assets180,138 56,067 236,205 LIABILITIES:Payroll withholdings48,777 50,662 99,439 Court escrow- - - Total liabilities48,777 50,662 99,439 NET POSITION: restricted for pensions131,361$ 5,405$ 136,766$ City of Carmel, IndianaCOMBINING STATEMENTS OF FIDUCIARY NET POSITION - PENSION FUNDSDecember 31, 2018131
City Court Agency Fund Payroll Agency FundTotal Agency FundsASSETS:Cash and investments 157,873$ -$ $ 157,873 Receivable from State of Indiana Total assets157,873 - 157,873 LIABILITIES:Payroll withholdings - - - Court escrow 157,873 - 157,873 Total liabilities157,873$ -$ 157,873$ December 31, 2018City of Carmel, IndianaCOMBINING STATEMENTS OF FIDUCIARY NET POSITION - AGENCY FUNDS132
1925 Police Pension Trust Fund 1937 Fire Pension Trust Fund Total Trust FundsADDITIONS:State of Indiana contributions 564,928$ 584,282$ 1,149,210$ Investment income 1,203 310 1,513 Miscellaneous revenue 2,246 2,461 4,707 Total additions568,377 587,053 1,155,430 DEDUCTIONS:Benefits 582,141 607,675 1,189,816 Other services and charges 2,346 - 2,346 Total deductions584,487 607,675 1,192,162 NET INCREASE (DECREASE) IN NET POSITION(16,110) (20,622) (36,732) NET POSITION: beginning147,471 26,027 173,498 NET POSITION: ending - restricted for pensions131,361$ 5,405$ 136,766$ City of Carmel, IndianaCOMBINING STATEMENT OF CHANGES IN FIDUCIARY NET POSITIONPENSION FUNDSFor the Fiscal Year Ended December 31, 2018133
City Court Agency Fund Payroll Agency Fund Total Agency FundsASSETS AT JANUARY 1, 2018131,570$ -$ 131,570$ Additions 1,668,884 (58,423,729) (56,754,845) Deductions (1,642,581) 58,423,729 56,781,148 ASSETS AT DECEMBER 31, 2018157,873$ -$ 157,873$ LIABILITIES AT JANUARY 1, 2018131,570$ -$ 131,570$ Additions1,668,884 (58,423,729) (56,754,845) Deductions(1,642,581) 58,423,729 56,781,148 LIABILITIES AT DECEMBER 31, 2018157,873$ -$ 157,873$ City of Carmel, IndianaCOMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIESAGENCY FUNDSFor the Fiscal Year Ended December 31, 2018134
City of Carmel, Indiana
Comprehensive Annual Financial Report
Contents Pages
Financial Trends 136 - 141
Revenue Capacity 142 - 145
Debt Capacity 146 - 150
Demographic and Economic Information 151 - 152
Operating Information 153 - 154
Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not
presented for certain statistical section presentations.
Operating information is intended to provide contextual information about the City's
operations and resources to assist readers in using financial statement information to
understand and assess the City’s economic condition.
Source: Unless otherwise noted, the information in these schedules is derived from the CAFR
for the relevant year.
STATISTICAL SECTION
This part of the City's comprehensive annual financial report (CAFR) presents detailed information as a context
for understanding what the information in the financial statements, note disclosures, and required supplementary
information says about the City's overall financial health.
Financial trends information is intended to assist users in understanding and assessing how
the City's financial position has changed over time.
Revenue capacity information is intended to assist users in understanding and assessing the
factors affecting the City's ability to generate its own-source revenues.
Debt capacity information is intended to assist users in understanding and assessing the City's
debt burden and its ability to issue additional debt.
Demographic and economic information is intended to (1) assist users in understanding the
socioeconomic environment within which the City operates and (2) provide information that
facilitates comparisons of financial statement information over time and among governments.
135
2018 2017 2016 2015
Governmental activities:
Net investment
in capital assets 412,830,075$ 344,721,169$ 299,216,267$ 314,601,738$
Not spendable - - - -
Restricted 35,065,020 30,924,357 25,355,156 25,629,325
Unrestricted (94,111,631) (83,269,698) (35,777,877) (42,319,616)
Total governmental
activities net position 353,783,464$ 292,375,828$ 288,793,546$ 297,911,447$
Business-type activities:
Net investment
in capital assets 114,861,067$ 118,497,972$ 116,495,474$ 113,210,726$
Not spendable - - - -
Restricted - - - -
Unrestricted (5,903,010) (9,695,164) (4,011,279) (1,147,670)
Total business-type
activities net position 108,958,057$ 108,802,808$ 112,484,195$ 112,063,056$
Primary government:
Net investment
in capital assets 527,691,142$ 463,219,141$ 415,711,741$ 427,812,464$
Not spendable - - - -
Restricted 35,065,020 30,924,357 25,355,156 25,629,325
Unrestricted (100,014,641) (92,964,862) (39,789,157) (43,467,286)
Total primary government
net position 462,741,521$ 401,178,636$ 401,277,741$ 409,974,503$
Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not presented
for certain statistical section presentations.
City of Carmel, Indiana
NET POSITION BY COMPONENT
Last Ten Fiscal Years
136
2018 2017 2016 2015
Expenses:
Governmental activities:
General government 24,996,549$ 30,372,875$ 30,984,884$ 20,841,943$
Public safety 53,919,299 41,085,416 40,267,560 42,151,467
Streets and other infrastructure 48,637,707 25,476,391 12,340,719 29,584,125
Economic development 15,817,738 16,711,747 54,995,901 10,771,611
Culture and recreation 21,621,998 17,932,242 10,122,290 18,549,674
Unallocated interest expense 2,267,516 18,217,810 5,545,855 4,542,707
Total governmental activities expenses 167,260,807 149,796,481 154,257,210 126,441,527
Business-type activities:
Water 19,277,075 20,824,320 19,439,437 13,542,037
Sewer 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 29,440,411 37,413,146 31,814,317 21,743,745
Total primary government expenses 196,701,218$ 187,209,627$ 186,071,527$ 148,185,272$
Program Revenues:
Governmental activities:
Charges for services:
General government 221,467$ 211,995$ 82,803$ 72,056$
Public safety 1,713,002 1,726,580 1,470,638 1,152,600
Streets and other infrastructure 2,869,523 98,090 248,036 480
Economic development 1,482,785 52,093 - -
Culture and recreation 12,403,573 12,818,388 11,585,645 7,345,221
Operating grants and contributions:
General government - - - -
Public safety 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 386,624 1,906,397 865,258 3,516,506
Economic development - - - -
Culture and recreation - - - 50,043
Total governmental activities revenues 20,399,693$ 16,910,436$ 14,365,031$ 12,197,524$
Continued on next page.
Last Ten Fiscal Years
CHANGES IN NET POSITION
City of Carmel, Indiana
137
2018 2017 2016 2015
Business-type activities:
Charges for services
Water 17,735,563$ 16,982,790$ 15,458,695$ 13,500,929$
Sewer 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
Operating grants and contributions
Water - - - -
Sewer - - - -
Capital grants and contributions
Water 3,279,973 4,995,765 4,620,949 -
Sewer 629,483 336,363 552,460 -
Total business-type activities revenues 31,639,677 36,317,481 34,192,478 26,011,545
Total primary government revenues 52,039,370$ 53,227,917$ 48,557,509$ 38,209,069$
Net (expense) revenue and changes in net position:
Governmental Activities (146,861,114)$ (132,886,045)$ (139,892,179)$ (114,244,003)$
Business-Type Activities 2,199,266 (1,095,665) 2,378,161 4,267,800
(144,661,848) (133,981,710) (137,514,018) (109,976,203)
GENERAL REVENUES AND TRANSFERS:
Property tax 54,455,110 52,042,841 52,989,360 44,104,576
Income tax 43,996,077 41,801,838 36,700,613 32,745,504
Other taxes 33,658,972 30,326,364 28,850,762 26,154,361
Unrestricted investment earnings 4,487,604 2,723,267 574,253 155,461
Other 29,899,818 15,522,157 16,797,331 20,679,190
Transfers - - - -
Total general revenues and transfers 166,497,581 142,416,467 135,912,319 123,839,092
CHANGE IN NET POSITION BEFORE SPECIAL ITEMS 21,835,733 8,434,757 (1,601,699) 13,862,889
SPECIAL ITEM: gain - - - 619,000
Total CHANGE IN NET POSITION 21,835,733 8,434,757 (1,601,699) 14,481,889
NET POSITION: beginning 400,056,203 401,190,880 409,974,503 395,492,614
Restatement 40,849,585 (8,447,001) (7,095,064) -
NET POSITION: beginning, adjusted 440,905,788 392,743,879 402,879,439 395,492,614
NET POSITION: ending 462,741,521$ 401,178,636$ 401,277,741$ 409,974,503$
Total primary government net (expense) revenue
Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not
presented for certain statistical section presentations.
CITY OF CARMEL
Changes in Net Position
Last Ten Fiscal Years
(Continued)
138
2018 2017 2016 2015
General Fund:
Nonspendable -$ -$ -$ -$
Restricted - - - -
Committed - - - -
Assigned 3,014,336 1,803,672 1,910,880 1,416,155
Unassigned 23,328,255 15,034,935 15,066,402 14,008,886
Total General Fund 26,342,591$ 16,838,607$ 16,977,282$ 15,425,041$
All Other Governmental Funds:
Nonspendable -$ -$ -$ -$
Restricted 178,817,196 256,581,733 257,811,177 43,069,142
Committed 6,007,566 5,443,978 3,212,225 1,115,637
Assigned - - - -
Unassigned - - - (249,855)
Total all other governmental funds 184,824,762$ 262,025,711$ 261,023,402$ 43,934,924$
City of Carmel, Indiana
FUND BALANCES ‐ GOVERNMENTAL FUNDS
Note: The City is presenting its fourth CAFR since 2007.
Accordingly, a 10-year history is not presented for certain
statistical section presentations.
Last Ten Fiscal Years
(modified accrual basis of accounting)
139
2018 2017 2016 2015
Revenues:
Property tax 54,425,761$ 52,259,944$ 52,647,063$ 44,043,914$
Income tax 44,606,607 37,187,574 46,625,784 28,847,934
Other local tax 33,658,972 30,326,364 28,850,762 26,154,361
Charges for services 18,679,782 14,907,146 12,901,368 8,570,357
Investment income 4,356,867 2,339,501 442,961 74,597
Licenses and permits 2,909,371 2,490,849 2,441,853 2,159,234
Fines and forfeits 457,062 466,731 571,556 788,604
Intergovernmental:
Grants 4,358,623 1,710,058 1,191,485 3,062,731
Fire service contract - - 6,825,041 4,870,501
State shared revenue 2,993,528 2,736,296 1,198,398 1,116,639
Other 7,426,341 5,995,761 - -
Contributions 190,321 262,116 660,714 286,716
Other 12,175,681 4,336,810 5,858,544 10,915,190
Total revenues 186,238,916 155,019,150 160,215,529 130,890,778
Expenditures:
Current:
General government 24,830,230 29,533,750 28,670,916 20,135,899
Public safety 49,683,728 40,261,813 38,547,773 45,026,384
Streets and other infrastructure 30,794,894 13,258,597 13,540,350 13,784,488
Economic development 20,179,724 1,319,474 5,074,808 4,284,583
Culture and recreation 14,359,423 12,938,526 13,397,374 13,432,578
Debt service:
Principal 21,976,855 18,808,576 17,387,515 15,768,608
Interest 28,361,382 26,688,864 17,763,071 17,223,247
Capital outlay:
General government 503,513 707,523 2,931,360 119,885
Public safety 2,440,252 1,327,731 1,925,392 3,710,693
Streets and other infrastructure 84,098,163 60,138,533 25,097,876 4,445,749
Economic development 15,212,738 34,138,220 16,809,771 2,439,830
Culture and recreation 5,061,517 747,324 734,053 422,388
Total expenditures 297,502,419 239,868,931 181,880,259 140,794,332
Excess (deficit) of revenues
over (under) expenditures (111,263,503) (84,849,781) (21,664,730) (9,903,554)
Continued on next page.
City of Carmel, Indiana
CHANGES IN FUND BALANCES ‐ GOVERNMENTAL FUNDS
(modified accrual basis of accounting)
Last Ten Fiscal Years
140
2018 2017 2016 2015
Other financing sources (uses)
Bond issuance - principal 13,791,036 81,358,423 199,265,510 -
Bond issuance - premium 243,540 3,334,569 35,087,956 -
Proceeds - refunding 0 23,180,000 18,170,404 -
Capital lease proceeds 2,555,639 2,638,693 2,294,226 3,167,006
Payment to refunded bond escrow agent 0 (26,501,547) (17,909,681) -
Transfers in 60,427,364 126,937,135 278,264,371 30,928,247
Transfer in from associated utility 1,320,506 1,703,277 1,606,319 1,014,100
Transfers out (60,427,364) (126,937,135) (278,264,371) (30,928,247)
Total other financing sources (uses) 17,910,721 85,713,415 238,514,734 4,181,106
Total change in fund balances (93,352,782)$ 863,634$ 216,850,004$ (5,722,448)$
Total debt service expenditures as a percentage
of noncapital expenditures 29.5% 28.9% 23.4% 25.0%
Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.
(Continued)
City of Carmel, Indiana
Changes in Fund Balances of Governmental Funds
(modified accrual basis of accounting)
Last Ten Fiscal Years
141
Net ValueNet ValueTotalTotalFiscalReal Estate Railroad/ Utility/ Business Net Taxable EstimatedDirectYearPropertyPersonal PropertyAssessed Value Actual ValueTax Rate20186,666,896,042467,365,6077,134,261,649 12,997,560,747 54.9% 0.788720176,474,642,116436,043,9656,910,686,081 12,552,181,043 55.1% 0.789520166,220,543,748420,168,7706,640,712,518 12,043,692,490 55.1% 0.835620156,006,875,967409,451,1196,416,327,086 11,591,806,730 55.4% 0.700720144,829,947,454398,186,3275,228,133,781 9,538,010,360 54.8% 0.700720134,762,146,198373,474,2015,135,620,399 9,445,479,646 54.4% 0.700720124,863,829,903398,308,9475,262,138,850 9,604,804,116 54.8% 0.678820114,891,357,512426,518,9045,317,876,416 9,561,032,777 55.6% 0.666420105,088,667,610388,639,3245,477,306,934 9,654,531,997 56.7% 0.666420095,010,445,942392,184,9795,402,630,921 9,462,572,040 57.1% 0.6664Source:Hamilton County Auditor's office property tax abstracts.Notes:1.Property taxes are the City's most significant own-source revenue.2.3.Assessed on January 1 of the prior year for taxes due and payable in the year indicated.4.Personal property other than business personal property is not taxable beginning in 2009.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 plus a 35% supplemental homestead deduction to arrive at net assessed value. City of Carmel, IndianaASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTYLast Ten Fiscal Years142
2018201720162015201420132012201120102009City Direct Rates:Corporation General 0.5769 0.5741 0.5745 0.5088 0.5381 0.5459 0.5284 0.5266 0.4578 0.3969Motor Vehicle Highway 0.1051 0.1027 0.1701 0.1643 0.1249 0.1268 0.1080 0.0777 0.1291 0.1490Cumulative Sewer 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0166Debt Service0.0193 0.0195 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000Redevelopment Bond0.0374 0.0440 0.0424 0.0000 0.0101 0.0000 0.0160 0.0145 0.0331 0.0565Lease Rental Payment0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0144 0.0133 0.0143Cumulative Capital Development 0.0500 0.0492 0.0486 0.0276 0.0276 0.0280 0.0264 0.0332 0.0331 0.0331Total Direct Rate0.7887 0.7895 0.8356 0.7007 0.7007 0.7007 0.6788 0.6664 0.6664 0.6664Overlapping Rates:State0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000 0.0000County0.2814 0.2814 0.2814 0.2926 0.3054 0.3074 0.2901 0.2769 0.2724 0.2651Solid Waste0.0032 0.0032 0.0032 0.0033 0.0033 0.0033 0.0032 0.0030 0.0030 0.0029Township - Clay0.0675 0.0694 0.0673 0.0746 0.0719 0.0781 0.0693 0.0753 0.0674 0.0945Library0.0760 0.0760 0.0778 0.0787 0.0787 0.0765 0.0682 0.0657 0.0657 0.0657Carmel Clay School Corp0.8118 0.8291 0.8053 0.8106 0.8453 0.8591 0.7911 0.8990 0.6460 0.6373Total Direct and Overlapping Rate 2.0286 2.0486 2.0706 1.9605 2.0053 2.0251 1.9007 1.9863 1.7209 1.7319Source: 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.The Indiana Constitution limits the taxing power of Indiana public agencies. 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.City of Carmel, IndianaPROPERTY TAX RATES - DIRECT AND OVERLAPPING GOVERNMENTSLast Ten Fiscal Years(Rate per $100 of assessed value)143
Percentage of Total City Percentage of Total City TaxpayerAssessed ValueAssessed ValueTaxpayerAssessed ValueAssessed ValueClarion Health North LLC98,553,400 1.48% Duke Realty 147,134,300 2.94%Carmel Lofts LLC46,895,600 0.70% Clarion Health North146,743,500 2.93%VSM Partners LLC31,906,200 0.48% Carmel Indy Properties LLC56,539,300 1.13%Parkwood Four & Five LLC31,622,800 0.47% TIC Carmel Center Furnas LLC 32,712,800 0.65%Clay Terrace Partners LLC31,265,100 0.47% Clay Terrace Partners LLC31,929,500 0.64%Carmel Center Apartments LLC30,348,000 0.46% HCRI Indiana Properties LLC27,044,500 0.54%BC Gramercy I LLC29,178,400 0.44% Mohawk Associates LLC23,697,600 0.47%Edward Rose Development Company LLC 28,157,900 0.42% Providence Housing23,186,800 0.46%Carmel Indy Holdings LLC27,022,900 0.41% North Haven Apartments23,103,800 0.46%Providence HUD LLC26,337,300 0.40% Liberty Parkwood Crossing LLC 22,225,100 0.44%381,287,600 5.72%534,317,200 10.66%Source: Hamilton County Auditor's office.20182009City of Carmel, IndianaPRINCIPAL PROPERTY TAXPAYERSCurrent Year and Nine Years Ago144
FiscalYear Total Taxes Levied Total Taxes Collected Percentage of Levy201856,917,333 53,042,657 93.19%201752,180,837 50,907,298 97.56%201655,990,426 52,647,063 94.03%201545,416,367 44,043,913 96.98%201444,020,059 40,554,757 92.13%201343,391,737 38,072,795 87.74%201243,399,780 37,319,721 85.99%201135,993,200 34,393,205 95.55%201036,193,490 36,600,347 101.12%200936,092,579 35,075,840 97.18%Source:Hamilton County Auditor's OfficeNote: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 2018, total delinquent property tax due to the City for 2018 and all prior years was approximately $4,699,849.City of Carmel, IndianaPROPERTY TAX LEVIES AND COLLECTIONSLast Ten Fiscal Years145
2018201720162015Certified net assessed valuation7,216,601,040$ 6,994,981,173$ 6,700,625,433$ 6,481,570,742$ 2% statutory debt limit2.0%2.0%2.0%2.0%Subtotal144,332,021 139,899,623 134,012,509 129,631,415 divided by 33.0 3.0 3.0 3.0 Debt limit48,110,674 46,633,208 44,670,836 43,210,472 Net debt applicable to debt limit(26,977,490) (29,641,000) (33,580,000) (15,417,000) Legal debt margin21,133,184$ 16,992,208$ 11,090,836$ 27,793,472$ Legal debt margin as percentage of debt limit43.93% 36.44% 24.83% 64.32%Source: Indiana Department of Local Government Finance budget orders.Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.City of Carmel, IndianaLEGAL DEBT MARGIN INFORMATIONLast Ten Fiscal Years146
2018 743,736,654 7,637,383 751,374,037 135,831,887 519,822 136,351,709 887,725,746 13.16% 9,1612017 721,260,757 7,315,666 728,576,423 172,348,990 721,688 173,070,678 901,647,101 15.07% 10,1282016 660,449,791 6,836,403 667,286,194 175,750,411 562,700 176,313,111 843,599,305 14.08% 9,4272015 755,670,563 7,315,666 762,986,229 139,951,647 721,688 147,318,693 910,304,922 12.42% 6,4411 Population and personal income data can be found on the Schedule of Demographics and Economic Statistics.Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.City of Carmel, IndianaRATIOS OF OUTSTANDING DEBT BY TYPELast Ten Fiscal YearsDebt per Capita 1 Total Business Activities Total Primary Government Percentage of Personal Income 1Business ActivitiesGovernmental Activities Bonds and Contract Purchases Total Governmental Activities Bonds and Contract Purchases Capital Leases Capital Leases 147
2018 879,568,541 25,853,165 853,715,376 6.57% 8,8102017 893,609,747 20,790,202 872,819,545 6.95% 9,5852016 836,200,202 21,862,629 814,337,573 6.76% 9,1472015 895,622,210 17,977,793 877,644,417 7.57% 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 fourth CAFR 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 3148
Percent Amount
Applicable to Applicable to
Governmental Unit Outstanding Debt Carmel (1)Carmel
Direct Debt:
City of Carmel (see page 147)751,374,037$ 100%751,374,037$
Overlapping Debt Paid with Property Taxes:
Carmel Clay School Corporation 38,900,000 77.90%30,303,444
Carmel Clay Public Library 1,425,000 97.54%1,389,935
Clay Township 35,084,500 97.54%34,221,168
Hamilton County 37,545,000 34.59%12,986,919
Other Overlapping Debt:
Hamilton County Income Tax Bonds 40,595,500 34.59%14,042,095
Hamilton County Tax Increment Bonds 38,790,000 0.00%-
Sub-Total Overlapping Debt:192,340,000$ 92,943,561
Total Direct and Overlapping Debt:844,317,598$
Population - 2018 (2)96,900
Estimated direct and overlapping debt per capita 8,713$
Note:
(2) 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.
(1) The percentage of overlapping debt applicable is estimated using taxable assessed property value. Applicable
percentages were estimated by determining the portion of another governmental unit's assessed value that is within the
City's corporate boundaries and dividing it by each unit total assessed value.
City of Carmel, Indiana
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
at December 31, 2018
149
Net RevenueNet RevenueOperating Operating Available forOperating Operating Available forRevenueExpenses 1Debt ServicePrincipalInterestCoverage 2RevenueExpenses 1Debt ServicePrincipalInterestCoverage 22018 17,735,563$ 10,480,050$ 7,255,513$ 3,191,000$ 4,912,499$ 90%9,994,658$ 7,042,092$ 2,952,566$ 1,323,861$ 495,372$ 162%2017 16,982,790$ 11,035,945$ 5,946,845$ 2,797,000$ 5,901,623$ 68%9,638,861$ 7,300,561$ 2,338,300$ 1,288,670$ 538,490$ 128%2016 15,458,695$ 9,343,469$ 6,115,226$ 2,877,177$ 5,993,331$ 69%9,303,554$ 6,915,953$ 2,387,601$ 1,254,484$ 557,477$ 132%2015 13,500,929$ 9,367,529$ 4,133,400$ 3,457,294$ 6,158,188$ 43%8,471,996$ 6,383,278$ 2,088,718$ 1,256,303$ 562,869$ 115%Note: Details of the City's outstanding debt can be found in the notes to the financial statements.1 Operating expenses do not include depreciation and amortization.2 Coverage = Net Available Revenue/Debt Service Requirements.Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not presented for certain statistical section presentations.City of Carmel, IndianaPLEDGED‐REVENUE COVERAGEat December 31, 2018Water Utility Sewer UtilityDebt Service Requirements Debt Service Requirements150
PublicFiscal Median Per Capita Personal High School School UnemploymentYearPopulation 1Age 1, 2Income 3IncomeGraduation 4Enrollment 5Rate 6201896,900 39.2 69,598 6,744,030,050 97.9% 16,147 2.6%201791,065 39.2 65,475 5,962,495,041 97.5% 16,082 2.8%201689,029 39.9 67,191 5,981,947,539 96.5% 15,954 3.2%201588,713 38.5 65,197 5,783,821,461 95.8% 15,971 3.3%201486,682 38.4 62,931 5,454,984,942 96.9% 15,912 4.0%201385,929 38.7 59,917 5,148,607,893 96.3% 15,724 4.8%201283,595 38.4 59,170 4,946,316,150 94.3% 15,750 5.0%201181,633 38.2 56,629 4,622,795,157 93.8% 15,493 5.3%201079,191 38.0 53,247 4,216,683,177 93.0% 15,498 5.9%200978,265 37.3 52,218 4,086,841,770 90.9% 15,218 6.2%Sources:1 U.S. Census Bureau U.S. Census Bureau, American Community Survey 1-Year Estimates2 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 2008-2016. 2017-18 estimates based on trend.4 National Center for Educational Statistics5 Indiana Department of Education Corporate enrollment, Carmel Clay Schools6 Bureau of Labor StatisticsCity of Carmel, IndianaDEMOGRAPHIC AND ECONOMIC STATISTICSLast Ten Fiscal Years151
Percentage of
Total City
Company Industry Employees Rank Employment
Carmel Clay Schools Public education 2,151 1 4.52%
CNO Financial Group Life insurance holding company 1,709 2 3.59%
KAR Auction Services Inc. Automotive remarketing services 1,600 3 3.36%
Liberty Mutual Insurance company 1,430 4 3.00%
GEICO Auto insurance company 1,114 5 2.34%
Resort Condominium Int’l. (RCI)Vacation exchange network and services 1,100 6 2.31%
IU Health North Acute healthcare facility 1,080 7 2.27%
NextGear Capital Automotive dealer financial services provi 1,057 8 2.22%
The Capital Group Financial Services 1,000 9 2.10%
Midcontinent ISO Electric power grid management 802 10 1.68%
Percentage of
Total City
Company Employees Rank Employment
Carmel Clay Schools 2,469 1 6.79%
Conseco Inc (now CNO Financial Group)2,036 2 6.17%
Marsh Supermarkets 1,235 3 3.74%
Clarian North Medical Center (now IU Health North)1,150 4 3.48%
Liberty Mutual/Indiana Insurance 750 5 2.27%
City of Carmel 700 6 2.12%
St. Vincent Carmel Hospital 664 7 2.01%
Independent Transmission System Operator 600 8 1.82%
TCL - Thomson Electronics 550 9 1.67%
St. Vincent Heart Center 500 10 1.51%
Sources: Hamilton County Economic Development Corporation
City and Company Officials
Carmel Clay School Corporation
2018
2009
City of Carmel, Indiana
PRINCIPAL EMPLOYERS
Current Year and Nine Years Ago
152
2018 2017 2016 2015
General Government:
Clerk-Treasurer 9986
Mayor 3333
City Council 7777
Board of Public Works 2222
Plan Commission 9 9 11 11
Administration 3324
City Court 6777
Law Department 7668
Community Services 23 21 22 22
Community Relations 7654
Public Safety:
Police
Officers 114 114 109 117
Civilians 24 23 23 26
Fire
Firefighters and Officers 146 147 153 166
Civilians 9889
Culture and Recreation:
Parks Department 63 65 64 62
Brookshire Golf 4444
Utilities (Water and Sewer)104 104 103 109
Other Programs:
Human Resources 3333
Street 50 48 48 52
Engineering 15151516
Information Systems 10 9 9 9
Communication Center 4464
Redevelopment 4231
TOTAL 626 619 621 652
Source: City of Carmel Department Heads; Human Resources
Note: The City is presenting its fourth CAFR since
2007. Accordingly, a 10-year history is not presented
for certain statistical section presentations.
City of Carmel, Indiana
CITY GOVERNMENT EMPLOYEES
BY FUNCTION/ PROGRAM
Last Ten Fiscal Years
153
2018 2017 2016 2015
General Government:
Community Services
Permits issued 1,731 1,557 1,351 1,237
Residential construction permits 478 463 429 359
Total number of dwelling units 767 759 432 1,663
Building inspections performed 487 472 431 476
Public Safety:
Police
Incidents 83,740 85,500 83,955 83,904
Occurred incidents 4,361 4,010 4,270 4,330
Fire
Emergency medical responses 5,517 5,136 4,755 4,402
Fire-related calls for service 3,220 2,906 2,592 2,312
Number of fire stations 6 6 6 6
Culture and recreation:
Number of parks and greenways 17 17 16 15
Total acres 505 505 505 505
Total trail miles 16 16 16 16
Streets:
Number of "center lane" miles streets 486 486 482 482
Number of roundabouts 122 116 111 97
Sewer:
12 12 12 12
Water:
Miles of watermains 538 538 538 538
Number of wells 20 20 20 20
Source: City of Carmel Department Heads; Carmel Clay Parks
City of Carmel, Indiana
OPERATING INDICATORS AND CAPITAL ASSET STATISTICS
BY FUNCTION/ PROGRAM
Wastewater treatment capacity (in millions of
gallons)
Note: The City is presenting its fourth CAFR since 2007. Accordingly, a 10-year history is not
presented for certain statistical section presentations.
Last Ten Fiscal Years
154