HomeMy WebLinkAbout2009 Annual Financial ReportCity of Livonia, Michigan
Financial Report
with Supplemental Information
November 30, 2009
City of Livonia, Michigan
Contents
Report Letter
1-2
Management's Discussion and Analysis 35
Basic Financial Statements
Govemment-wide Financial Statements:
56
Statement of Net Assets
10
Statement of Activities
11-12
Fund Financial Statements:
56
Governmental Funds:
23
Balance Sheet
13
Reconciliation of Fund Balances of Governmental Funds to Net Assets
2655
of Governmental Activities
14
Statement of Revenue, Expenditures, and Changes in Fund Balances
15
Reconciliation of the Statement of Revenue, Expenditures, and Changes
in Fund Balances of Governmental Funds to the Statement of
Activities
16
Propnetary Funds:
Statement of Net Assets
17
Statement of Revenue, Expenses, and Changes in Net Assets
18
Statement of Cash Flows
19-20
Fiduciary Funds:
Statement of Net Assets
21
Statement of Changes in Net Assets - Pension and Other Employee
Benefits Trust Funds
22
Component Units:
56
Statement of Net Assets
23
Statement of Activities
24-25
Notes to Financial Statements
2655
Required Supplemental Information
56
Budgetary Companson Schedule - General Fund
5759
Budgetary Companson Schedule - Major Special Revenue Funds
60-61
City of Livonia, Michigan
Contents (Continued)
Required Supplemental Information (Continued)
Pension System:
Schedule of Funding Progress
62
Schedule of Employer Contributions
62
Retiree Health and Disability Benefits Plan:
Schedule of Funding Progress
63
Schedule of Employer Contributions
63
Actuarial Assumptions
64
Notes to Required Supplemental Informtion
65-66
Other Supplemental Information
67
Nonmajor Governmental Funds:
Combining Balance Sheet 68-71
Corbining Statement of Revenue, Expenditures, and Changes in Fund
Balances (Deficit) 72-75
Fiduciary Funds:
Combining Statement of Net Assets 76-77
Combining Statement of Changes in Net Assets 78
plante °" ""°�°°"`
„ I IN
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Moran SnRM], GREG A1A4=7RM{Q°,
i.P W,9
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Independent Auditors Report
To the Honorable Mayor and
Members of the City Council
City of Livonia, Michigan
We have audited the accompanying financial statements of the governmental activities, the
business -type activities, the discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Livonia, Michigan (the "City") as of and for
the year ended November 30, 2009, which collectively comprise the City's basic financial
statements as listed in the table of contents. These financial statements are the responsibility of
the City of Livonia, Michigan's management Our responsibility is to express opinions on these
financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Gommment
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairy, in all material respects,
the respective financial position of the governmental activities, the business -type activities, the
discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Livonia, Michigan as of November 30, 2009 and the respective
charges in financial position and cash flows, where applicable, thereof for the year then ended, in
conformity with accounting principles generally accepted in the United States of America.
The management's discussion and analysis, pension system schedule of funding progress and
employer contributions, postemployment benefit plans schedule of funding progress and
employer contributions, and the budgetary comparison schedules, as identified in the table of
contents, are not required parts of the basic financial statements but are supplemental
information required by the Governmental Accounting Standards Board. We have applied
certain limited procedures, which consisted principally of inquiries of management, regarding the
methods of measurement and presentation of the required supplemental information.
However, we did not audit the information and express no opinion on it.
Praxitr:
To the Honorable Mayor and
Members of the City Council
City of Livonia, Michigan
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Livonia, Michigan's basic financial statements. The
accompanying other supplemental information, as identified in the table of contents, is presented
for the purpose of additional analysis and is not a required part of the basic financial statements.
The other supplemental information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued our report dated March
30, 2010 our consideration of the City's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, and grants. The purpose
of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards and should be read in conjunction
with this report in considering the results of our audit.
As discussed in Note 11, the City implemented GASB Statement No. 45, Accounting and
Financial Reporting by Employers forPostemployment Benefits Other Than Pensions, during the year.
As a result, the government -wide statements and Enterprise Funds now report the cost of those
postemployment benefits (i.e., retiree health care and disability) as those benefits are earned by
the employees.
/qs.& t /Ksu+ri, P44It
March 30, 2010
City of Livonia, Michigan
Management's Discussion and Analysis
Overview of the Financial Statements
The City of Livonia, Michigan's (the "City") 2009 annual report consists of four parts: (1)
management's discussion and analysis, (2) basic financial statements, (3) required supplemental
information, and (4) other supplemental information that presents combining statements for
nonmajor governmental funds, proprietary funds, and fiduciary funds. The basic financial
statements include two kinds of statements that present different views of the City. The first
two statements are government -wide financial statements that are intended to provide longer-
term information about the City's overall financial status. The remaining statements are fund
financial statements that focus on individual parts of the City's government, reporting the City's
operations in more detail than the government -wide financial statements.
Government -wide Financial Statements
The government -wide financial statements report information about the City as a whole using
accounting methods similar to those used by private sector companies. The statement of net
assets includes all of the government's assets and liabilities. All of the current year's revenues
and expenses are accounted for in the statement of activities regardless of when cash is received
or paid.
The two government -wide statements report the City's net assets and how they have changed.
Net assets, the difference between the City's assets and liabilities, are one way to measure the
Citys financial health or position.
The government -wide financial statements of the City are divided into three categories:
0 Government Activities - Most of the City's basic services are included here, such as the
police, fire, public works, pads departments, and general administration. Property taxes,
state -shared revenue, and charges for services provide most of the funding for these
activities.
0 Business -type Activities - The City charges fees to customers to cover the costs of certain
services it provides. The City's water and sewer system, golf course operations, and non-
federal senior housing are treated as business -type activities.
0 Component Units - The City includes three other entities in its report, the Plymouth Road
Development Authority, the Economic Development Corporation, and the Livonia
Brownfield Redevelopment Authority. Although legally separate, these "component units"
are important because the City is financially accountable for them, including debt, which is
issued on behalf of the authorities by the City.
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
Fund Financial Statements
The fund financial statements provide more detailed information about the City's most
significant funds - not the City as a whole. Funds are accounting tools that the City uses to keep
track of specific sources of funding and spending for particular purposes. Some funds are
required by state law and bond covenants. Other funds are established to control and manage
money for particular purposes.
The City has three kinds of funds:
0 Governmental Funds - Most of the City's basic services are included in governmental
funds, which focus on him cash and other financial assets that can be converted to cash, flan
in and out, and the balance left at year end that is available for spending. The governmental
fund statements provide a detailed short-term view that helps you determine if there are
more or fewer financial resources available to spend in the near future to finance the City's
program.
0 Proprietary Funds - Services that are intended to be entirely self-supporting by customer
fees are generally reported in proprietary funds. Proprietary fund statements, like
government -wide statements, provide both short- and long-term financial information.
0 Fiduciary Funds - The City is responsible for ensuring that the assets in these funds are
used for their intended purposes. We exclude these activities from the government -wide
financial statements because the City cannot use these assets to finance its operations.
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
The City as a Whole
In a condensed format, the table below shows a comparison of the net assets as of
November 30, 2009 to the prior year.
Net Assets (in millions of dollars)
Summary Condensed Statement of Net Assets
Governmental) tivdies BusinesstypePctiHties Total
2009 2008 2009 2008 2009 2008
Assets
Current and other assets $ 58.2 $ 578 $ 325 $ 331 $ 907 $ 909
Carnal assets 1763 1683 780 882 2543 2485
Total assets 2345 2261 1185 1133 345.0 3394
LiaNlities
Current liabilities 82 71 32 29 114 180
Longterm hadlities 55.8 476 135 155 693 63.1
Total liabilities 640 547 167 184 887 731
Net Assts
Invested in carnal assets -
Not ofrelated! debit 1339 1316 659 669 1996 1985
Restricted 249 262 31 31 280 29.3
Unrestricted 117 136 248 249 365 385
Total net assets $ 170.5 $ 171.4 $ 0.8 $ 94.9 $ 264.3 $ 266.3
City of Livonia - Net Assets
The City's assets exceed its liabilities at the end of the fiscal year by $264.3 million (net assets).
However, a major portion (76 percent) of the City's net assets represents its investments in
capital assets (e.g., land, roads, infrastructure, buildings, and equipment) less any related debt
used to acquire or construct these assets. The City uses these physical assets to provide
services to its citizens. These assets are illiquid and not available for future spending.
Uninstdcted net assets of the City's governmental activities decreased from $13.6 million at
November 30, 2008 to $11.7 million at the end of this year. The amount represents the part of
net assets that can be used to finance day-to-day operations without constraints established by
debt covenants, enabling legislation, or other legal requirements.
Further, the City is able to report positive balances in all three categories of net assets, both for
the government as a whole, as well as for its separate governmental and business -type activities.
5
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
The following table shows the changes in net assets during the current year, and as compared to
the prior year
Changes in Net Assets (in millions of dollars)
Summary Condensed Income Statement
Gmemmental Activdies Businesstype Activdies Total
2009 2008 2009 20M 2009 2008
Revenue
10.6
112
-
-
106
112
Program revenue:
312
38.]
-
-
312
38.]
Charges for services
$ 152 $
160 $
254 $
219 $
406 $
n 9
Operating grants and
contributions
87
95
-
-
87
95
Capital grants and
162
155
-
-
162
155
contributions
03
02
-
02
03
04
Gereral revenue:
-
-
243
251
243
251
Properly taxes
569
583
-
-
569
583
State -shared revenue
17
91
-
-
17
91
Rental income and fees
18
17
-
-
18
17
Interest
13
28
04
08
V
36
Transfer and
(09)
31
Ti 0)
12
(19)
44
miscellaneous
1714
1683
03
04
03
04
Total revenue
919
96.2
261
293
1180
1215
Program alaerees
Gereral govemment
10.6
112
-
-
106
112
Public safety
312
38.]
-
-
312
38.]
Publicworks
258
268
-
-
258
26.8
Community and economic
development
11
1 4
-
-
11
14
Recreation and culture
162
155
-
-
162
155
Interest on longterm debt
19
14
-
-
19
1 4
Water and sewer
-
-
243
251
243
251
Gdfcoum
-
-
18
19
18
19
Housing
18
11
18
11
Total program
expenses
928
95.0
211
281
1199
1231
Chasgein Net Assets
(09)
31
Ti 0)
12
(19)
44
Net Assets- Beginning of year
1714
1683
948
936
2662
2619
Net Assets - EM of year $
170.5 $
171A $
93.8 $
94.8 $
264.3 $
266.3
fi
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
Governmental Activities
In reviewing the above table, it can be noted that revenues decreased by $6.2 million and
expenses decreased by $2.2 million. The significant factors impacting revenue include decreases
in property tax revenues of $1.4 million, state -shared revenue of $2.0 million, and investment
income of $1.5 million. Expenses were held essentially flat during the year, as increases to
employee wages and benefit costs were offset by reduced staffing.
Business -type Activities
Livonia has three business -type activities. These include the water and sewer system, the
operating fund for the Fox Creek, Idyl Wy1d, and Whispering Willows golf courses, and non-
federal senior housing at Silver Village and Newburgh Village.
The following table shows the operating income (loss) before contributions, transfers, and
interest for each of these activities in the current and prior year:
(In tWusards a dollars)
Water and Sewer Goll Courses Housing
2009 2008 2009 2008 2009 2008
Operating Revenue $ 22,762 $ 25,167 $ 1593 $ 1]25 $ 1,336 $ 1317
Operating Expenses (22,932) (24552) (1,812) (1,939) Owl (1,004)
Operating Income(Lms) $ (170) $ 615 $ (219) $ (214) $ 443 $ 313
Capital Assets and Debt Distribution
At the end of fiscal year 2009, the City has $412.5 million invested, before depreciation, in a
wide range of capital assets, including land, buildings, infrastructure, public safety equipment,
computer equipment, and water and sewer lines.
Debt of $44.0 million related to the construction of the above-mentioned capital assets is
reported as a liability in the governmental activities in the statement of net assets.
Debt related to the water and sewer system totaling $10.4 million and debt related to the
housing and golf course activities of $2.6 million is recorded as a liability in the business -type
activities in the statement of net assets. This debt represents construction of and improvements
to existing water and sewer lines and improvements to the golf course and the City residential
rental facilities.
7
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
Significant additions to capital assets during fiscal year 2009 include $4.3 million invested in the
construction of infrastructure and improvements to roads, $3.3 million invested in equipment
and vehicles, and $7.8 million invested in the construction of a new court house and golf course
club house. Significant disposals of capital assets during fiscal year 2009 included the disposal of
library books and other vehicles and equipment with a total cost of $3.3 million.
The City's Funds
The fund financial statements begin on page 13 and provide detailed information on the most
significant governmental funds - not the City as a whole. Funds are created to help manage
money for special purposes, as well as to show accountability for certain activities, such as
special property tax millages. The Citys major governmental funds for 2009 include the General
Fund, Community Recreation Fund, and Refuse Disposal Fund.
The City's governmental funds reported a combined fund balance of $37.6 million. This is a
decrease of approximately $1.0 million for the year. The decrease was caused primarily by the
use of fund balance to construct a new golf course club house.
General Fund Budgetary Highlights
Over the course of the year, the City administration and City Council monitor and amend the
budget, primarily to prevent expenditures in excess of budget, as required by the State of
Michigan Budget Act. The final amended budget included nearly the same total revenues and
expenditures as the original adopted budget.
Actual General Fund revenues were approximately $4.3 million below the final budget. The
deep economic slowdown resulted in all categories of revenue being below budget estimates.
Specifically, the biggest shortfalls were seen in licenses and permits ($771,000), state -shared
revenue ($1,059,000), interest income ($1,425,000), and court fines ($394,000).
Actual General Fund expenditures were approximately $4.4 million below the final budget. All
departments held expenditures below the final budget.
Current Economic Conditions
The City continues to maintain positive fund balances in each of its funds. However, concerns
arse when considering the revenues and expenses that the City is facing in upcoming years.
The majority of the City's revenue base is constrained by factors outside the City's control.
Property taxes, state -shared revenue, and interest income total 77 percent of the City's total
governmental activities revenue. Property tax revenue will significantly decrease incoming years
as a result of decreased property values. The State of Michigan has experienced budget deficits
and has significantly reduced revenue-sharing payments to local governments to help reduce its
deficit. Interest rates are at historic lows as a result of rate cuts from the federal reserve.
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
On the expense side, certain expenses continue to rise at a rate far in excess of inflation. In
particular, healthcare expenses have continued their trend of double-digit increases. Hiring and
capital outlay freezes, among other measures, have been implemented in previous years to
reduce expenses to the level of available revenue. We are committed to living within our
means, although the result may be diminished programs and service response capabilities.
Contacting the City's Financial Management
The financial report is designed to provide our citizens, taxpayers, customers, investors, and
creditors with a general overview of the City's finances and to show the City's accountability for
the money it receives. If you have questions about this report or need additional financial
information, contact the director of finance at the City of Livonia, 33000 Civic Center Drive,
Livonia, Michigan 48154.
City of Livonia, Michigan
Statement of Net Assets
November 30, 2009
Governmental
Bisineartype
Counpunent
Activates
Acgviges
Total
Dote
s sets
Cash atllnvestments(Note 3) a
49,159814
a 1],83],355 a
65,197,169
a 3,319,26!
Reconvenes
Taxes
237,320
-
237,320
43,183
customers
-
9,89915
9,89195
-
Bacia assessments
520,991
-
520,991
-
Ouehsmdhergwemmedalunis
Dueta<shergovrn-
3959,782
-
3959,782
-
VEBH
1;159087
-
1;159087
-
Other
2.422.924
614,819
743
6,915
Rpaits
lmenitecaed;
]94281
]60,252
1511
18,000
Datenawres.aa
-
4,160,714
4,1]8,713
4,160,]14
-
do
capta arseN (Nile a):
Deal
NmRae<ade cartel assets
43995,093
6,003,580
09,436,613
474,446
Oeaeciade spta'asets-et
N
132935,007
]2,00],439
200902,446
&,]?2,010
Total mob
anctmo,666
110507,3321
3n5,593mo
1z5v,]43
Hataililia
Accounts t@ade
6,039250
1455.357
7,494611
79,263
Acauwana other Bandies
1¢9901
159924
1616,825
115,789
Debrodreveme(Nde 13)
673,65(3
53z46o
1259,116
-
Duetsdhergwemmentalunits
-
820209
820209
-
BmdanaRpaits
-
More
2]],086
-
NmmrreniliaNitiesDate 6):
Due within we par
4,699520
1911
6614,E31
393,003
Due in more than one year:
Bond encounter losses ierade
42543636
11441336
53,980972
3,920,000
cemPemateaa een<esandinsurance aaimm
7316205
133233
7,479438
-
NetOPEBsbigatim
494552
20555
515,107
-
lanagllclssureliaNity
748906
748906
Total histories
64,o55,632
16,702501
80758,133
5,5m,05r
Net !tsars
Imostealnsptalasets-Netofrelatea RN
133855]84
65,E57274
1%,59,058
4,ml
Restricted
commaity recreation
4,]]2995
-
4,]]2995
-
Muncite'refuse
636181
-
636181
-
dreet,loans, anasidwallis
4523,655
-
4523,655
-
il
1X0160
-
1X0160
-
Public nobly communication
3,696340
-
3,696340
-
Grants
2688]2
-
2688]2
-
streethignirg
47,654
-
47,654
-
Acluasieabrkiturs
1511,107
-
1511,107
-
Commmitytransit
31,894
-
31,894
-
CouaWiangimaow^ents
19321,152
-
19321,152
-
DrainmeaoFcts
134215
-
134215
-
Rsvideabrwanancereryrements
-
3136,123
3136,123
-
Wderanasexer
-
24,893,199
24,893,199
-
umsvidea
11690,409
(53,]63,
11636646
z1al
Total not riots $
178,485054
S 93s00sX S
264,329,887
S 7,817,686
The Notes to Financialstatements are an
tp
Integral Part of this Statement.
City of Livonia, Michigan
The Notes to Financial Statements are an 11
Integral Part of this Statement.
Program Revenues
Operating Gants
Charg¢br
and
Cartel Granlsantl
Brussels Services
Contributions
Contractors
Furction9Programs
Prinnrygovernnent
Guuernmental actiMies:
General government
$ 186N205 a 3,]35,]16
a 2,065
a -
Nbicsakly
3],162635 5208,31IFF
1,9,15657
-
PUNKwwVs
25759,056 1738002
5,8!'£,153
325,837
Community and ecmwnK drelopnent
1.108,320 1883Y
]]3,750
-
RecrealimanticulWre
16 194103 0206,6115
96,914
-
Interest on Iwgterm cN
193697
T otal godarmrental activities
92614,726 15,101382
8,686903
325,837
6u5ine5stype a4iMies
Water and serer
26,336912 225M,fib
-
51,132
Goll course
1812,1156 1,sdaw
Housing
1003,]53 1}35601
T otal WsitesIl activities
27,1152,831 2538831IFF
51,132
T otal ternary godarnmenl
$ 119,99],55] $ 00521,699
$ 8,688903
$ 376,819
congnnem cote:
EconomK Development Cwtroca n
s ns-
PlymonhR®aDevempeemAuthoriry
15]0,666
Total component mile
$ 1,510,784 $
$
$
Genera'revenues .
Propenytaxes
statesharetlrevenue
Unrestrdetl %esantl other
Interest
Miscellaneous
Trashars
Total general revenues and
trarl
Greece in Net Isseb
Net AssetsBeginningofyear
Net Asset-Entlofy r
The Notes to Financial Statements are an 11
Integral Part of this Statement.
Statement of Activities
Year Ended November 30, 2009
Not (Er me) Revenue wd Chages in Net F ek
Pri�C wrn"nt
mem"dal Bisin�[y
AdWi¢ Activities Tdal Cment Unb
8 (6986,82 8
- 8 (6,906,820) 8
- (I,7N,111)
(I,M,111) -
(17,x36214)
(94,119)
(194,234)
- (194574)
(11,442,574)
-
a9w,4(
(19364x7,
(174)
1o71
,
(62090,714) -
(%c)0,714) -
- (I,7N,111)
(I,M,111) -
- (276,119)
(94,119)
331818
Mims
(1721,382]
(1 721,362)
I,Maz
-
(68698,714) (1,721,382)
(]11,4120966 -
(M)
(15706£
(157x,784)
w,s53,2ss
-
56,x53574
102,610
171619,538
91872933
285,322523
7,62376Ti
I,s az
-
I,Maz
-
127272
36+,326
1,612,214
16,291
182sm
250,916
3 ,Uo
-
(75,00q
75,000
-
-
61,726232
693222
%419,462
1,224,7w
ry64,476)
(1,M,160)
(1,992036)
(5160x1)
171619,538
91872933
285,322523
7,62376Ti
S 172p85,254 $
93,244,x33 $
264,329,867 $
7,OH,686
12
City of Livonia, Michigan
Governmental Funds
Balance Sheet
November 30, 2009
uA-or Special Revenue Fund
Other N maaejw TOUT
Creaarrunity Rene Diap®I Gavemnental Govemnental
General Find Recreation Svstem Find Fund
Assess
Current assets
Cash andinv¢iirents
s
0,0)8629 s
5,898296 s
8598,396 s
20965,774 s
40,133,915
Re ivaNes.
Tares
126,833
16289
51698
63,388
217328
Stall assessment;
-
-
-
5211,931
'08991
Workels'<wnpzmaiim
9W
9W
Due tom other govemarenlal wide
2,211446
-
-
1675,256
3,906,782
WBH
1159087
1159087
Other
8]6,828
-
45875
221,359
1146,872
Inventory, prepaid"penes, and tlzpaiU
131,922
274,249
496,171
Total assets
$
9,225,412 $
5914,495 S
8695,8]1 $
B,683,947 $
47,519,T15
Hatuililis and Fund Balarca
Haiti
Accounts pryade
a
987585 a
420.982 a
1522,]33 a
3,111 a
6,039254
Hccruedand otherliadlitis
1022302
Muted
42,413
15,201
122827]
Detailed revenue (Note 13)
1NO'ere
68],933
45,303
85,910
2,612,112
Total al iiia
2992293
1;155,716
1610449
4,121,125
9,SN,W
Fund Balance
ReservncIV preleidandinventory
92063
92063
ReservedkeaPUlimprovearents
1570,124
1900124
Dnrserved-Bndsignated-Reported in
Genera' Fund
6,141076
-
-
-
6,141076
Special Revenue Fund
-
4,]58,]19
7,085022
12e5155
24,496,006
Carl Preheats Fund
-
-
-
5,3408U
5,340833
Total Fund! Wane
6,23,119
4,]58,]19
7,085022
19,`8,822
37,640082
Total liadlilies and Fund deduces
$
9,225,412 $
5914,495 $
8,691 $
8,683,947 $
47,519,85
The Notes to Financial Statements are an 13
Integral Part of the Statement.
City of Livonia, Michigan
Governmental Funds
Reconciliation of Fund Balances of Governmental Funds to Net Assets of
Governmental Activities
November 30, 2009
Total Fund Balances of Governmental Funds
$ 37,640,082
Amounts reported for governmental activities in the statement of net
assets are different because:
Capital assets used in governmental activities are not financial resources
and are not reported in the funds
176,330,100
Certain receivables are expected to be collected over several years
relating to special assessments and delinquent personal property taxes
1,938,456
A portion of fines and fees are not available to pay for current
year expenditures
1,276,853
The liabilities for accrued interest payable, compensated absences,
and general claims are recorded when incurred in the statement
of activities:
Compensated absences
(8,227,149)
Accrued interest payable
(158,339)
Environmental remediation
(123,285)
Landfill closure and postclosure liability is not due and payable in the
current period and is not reported in the funds
(748,908)
Long-term liabilities are not due and payable in the current period and
are not reported in the funds
(44,044,440)
Net OPEB obligation is not due and payable in the current pedod and
is not reported in the funds
(494,552)
The Internal Service Fund (self-insurance) is included as part of
governmental activities
7,096,236
Net Assets of Governmental Activities
$ 170,485,054
The Notes to Financialstatements are an 14
Integral Part of the Statement.
City of Livonia, Michigan
Governmental Funds
Statement of Revenue, Expenditures, and
Changes in Fund Balances
Year Ended November 30, 2009
Tota revenue 09570,306 11 12,963502 22,]01]39 91837,288
Expenditures
General gwemmem
9,020950
Will sceaal Revenue Fund
-
-
9,020,950
Pubicskty
33.791852
-
Omer
8,735813
02527665
Pubicwwks
2.921
-
Nourmjor
Total
27}09,706
Recreation andculWre
Commumty,
Refuge Disp®I
Governmental
Govnniental
11
General Fina
Recreation
System
Find
Find
general
Fnpgee eeneus, insurance, and other
1642
-
-
-
PrcpeMmrss
s 30261,680
s 3898.169
s 11,78!204
s 18894,382
s 56.84,375
F emesanainermm
1575,696
-
-
-
1575,696
sPecialasessmems
-
-
-
1,168151
1,168151
Intercesurnmental revenue:
Excess of general Over!Under! Expenditures
615,937
1E9,860
5,057
(1186496)
State sources
7,904,933
-
-
51933894
13904893
Federal sources
182352
-
-
15 638
1,717,000
Charges M services
3,308,676
3,400,919
112,368
975,950
7,797,913
Interest
370,716
121,040
19531
0.56,152
1105,503
Fines and brkimres
3502,089
-
-
978,]0]
0088835
Miselanews revenue
2,050628
01623
11
793,825
3,303,521
Tota revenue 09570,306 11 12,963502 22,]01]39 91837,288
Expenditures
General gwemmem
9,020950
-
-
-
9,020,950
Pubicskty
33.791852
-
-
8,735813
02527665
Pubicwwks
2.921
-
12,058,085
12352,317
27}09,706
Recreation andculWre
1521869
6,005,637
-
6206,003
11
Cownmintyana stannic develupnem
622,865
-
-
532517
1150.582
Fnpgee eeneus, insurance, and other
1642
-
-
-
109,738
Cartel outlay
621
-
-
3,336927
3,3311
Debt series
2,964658
2,964,658
Tota' expenditures
0899,369
6,005,637
12,058,685
Bihirr 5
101198326
Excess of general Over!Under! Expenditures
615,937
1E9,860
5,057
(1186496)
(9,359038,
Other Financing sources (Uses)
Proceed hoot !sue of new debt
-
-
-
8500000
8500,000
Tramkrs in (Note 5)
490,000
-
-
10692365
10,982366
Tramkrs cut (Note 5)
Beals)
(251914p
ff695900(
(11057366)
Total other financing sourws(uss)
(92515)
(251914p
11296066
8025000
Net Change in Fund Balances
63622
(853,p87)
5,057
(100030)
(93,1,038)
Fund Balances- Beginning of year
6,169097
5,621806
7,079,965
19,702852
38570,120
Fund Balance-Endofyear
$ 6,233,119
$ 0,]58,]19 $
7,08582
$ 19,561
$ 37,600,082
The Notes to Financial Statements are an 15
Integral Part of this Statement.
City of Livonia, Michigan
Governmental Funds
Reconciliation of the Statement of Revenue, Expenditures,
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
Year Ended November 30, 2009
Net Change in FurM Balances - Total Governmental Funds $ (934,038)
Amounts reported torgmernmental actiHties in the statement of
Goiernmental funds reportemstal outlays as expendiWres;
in the statement of actiHties, these costs are allocate! neer
Mar estimate! useful liens as @preciatien
15,694 4]3
Depreciation, net of deposals, is recordetl as an expense in the
statement of actiHties but not in the gosemmental funds
(],339 805)
Loss on disposal of Lime! assets is recordetl in the statement
of activilies but not in the governmental fins
(362,054)
Certain reeenue reported in the statement of activilies is
recnrd:d in the gosemmental funds as deterred reeenue
234,783
Bund pmoseds pmHd: financial resources to gosemmental funds,
but issuing debt increases longterm handles in the statement of
net assets
(8,500,000)
Reinomentof ndnd principal is an expeiWRure in the
governmental funds, but not in the statementof activilies
(where R retluces hang -term dAt)
11r3,246
Interestexpense is recordetl when incurred in the statement
of aaivaies
(28,649)
Net increase in accumulated employee sick and vacation pay is
recorded when incurred in the statement of actiHties
(679,313)
Increase in landfll Iiadlity is recorded when incurred in the
statement Nactisities
(34,932)
Eneimmental remndiation liability is recordetl when incurred in the
statement of actisities
(123,285)
Increase in net OPEB obligation is recordetl when incurred in the
statement of actisities
(494,562)
The Internal SerHce Fund (selfinsuanni is also inclutled as
gmemmental actiHties in the statement of actiHties
439,650
charge i n Net Assets of Govemmental Activities
$ (%4,476)
The Notes to Financialstatements are an 16
Integral Part of this Statement.
City of Livonia, Michigan
Proprietary Funds
Statement of Net Assets
November 30, 2009
The Notes to Financialstatements are an 17
Integral Part of this Statement.
Nonrreiw
Nuw Enterwise
Fund:
Enterwise Funs
waterana
Taal Entemse
Internal servace
Sewer
Hosing
CoffCals
Fund
Finn
s>was
Current mots
Cash andimsMents
s 16,118,414
s 250931
s 395)
s 17m7355
s 9625,839
naaunts recondite:
Cu9oners
989,115
-
-
9,859,115
-
Other
606,619
-
6,E66
616,819
-
Inrzawy, Pe�itl expenaWres.ana Rpcits
18x252
18x.252
Win
Taal anent awns
2a,)n32)
250931
1)32)
28305,601
9414,6)8
Noncurrent mots:
Reanaedassets (Nae T)
4,160,114
-
-
4,16o,114
-
Nondeseaiabeaseld
85,1U
1581?48
3582.488
6,0356o
-
oeaeaabeasets-Net
66,1V3591
6,189282
11M.566
12667,39
Totalnonaurrentaswts
111,9aas
511123)
5n1r6x
82211n3
Total mob
99219169
6,026,161
5301 ma
11D i7334
9414,6o8
bab6nes
Current habmes:
HcmurAe tetade
1360,162
29,68!
65,168
10.55,351
-
ncaueeandaherhablmw
9),153
14,9W
1661
106,924
-
Due toaher9o+emmeaalunik
820269
-
-
820,209
-
oerarreareenuemore 13)
53246)
-
-
532360
-
Bmdaia@paita
1xa2ae
126881
-
2 oaa
-
Current portion oflow4ermobgatiom
1694149
414,113
6,479
19153x1
Taal current hatimies
4,4a6p84
sar3as
n5
5,107}11
-
Noncurrent Ia a It es
Lm94emudeb- Netofmrreapoetion(Nae6)
9311,618
2261611
1534
115/4,569
23171!2
Net OaEB obi9amn
M555
20,555
Total noncurrent Habits
93319n
2261611
1564
11f95124
23110.2
Total liatelies
13,118,,2/
280.9,)@
15,W2
16,71)2A1
23171!2
Net Assets
Invested inaptal mots- Netofrelatedaeb
51,40990
3;166230
5291'aer
65e672r4
-
R¢Vi<@tlM wanawe reryirerren6
3;133,19
-
-
3138,123
-
Nnre9(¢tea
24,891193
16929
(61[ E92(
24,839,,36
7036.236
Taal net riots
E 85 LC1311
E 3111159
E 5126}62
"M44,833
E 1096216
The Notes to Financialstatements are an 17
Integral Part of this Statement.
City of Livonia, Michigan
Proprietary Funds
Statement of Revenue, Expenses, and Changes in Net Assets
Year Ended November 30, 2009
Nouinajor
XApFEnterpiso Fun do Enterprise Fund
Trial Enterprise Internal Service
Mier andSewer Housing Gdf Course Fund Fund
Operating Revenue
Crstorrer Ishigs
8 21,43,0.59
8 -
8 -
8 21 E3t.459 8
-
Finn add forfeitures
100?aw
-
-
1901650
-
SeM<e<onne<liona
36,017
-
-
36,01
Greens fees
-
-
1,E08,137
1,E08,137
-
GdfaOk¢
-
-
9!520
M526
-
CgyconNWtions
-
-
-
-
13,935118
Rental income
-
1,331,233
4,000
1,330283
Other revenue
290,272
2,030
46,693
33a995
T otal operating revenue
22762,196
1,336,313
1593,3.51
2569?865
13935618
Operating Expenm
Cost ofwater
6,55o,811
-
-
6550811
-
Cmtofsewagemused
],95],196
-
-
],95],196
-
systemhenlemnreantloperalim
1,639,295
-
-
1,639295
-
Generalandadministralive
1,101
-
-
1;102575
Deprecation
26a?]32
171
11
3,033,822
-
Reinsuranceclargesanddinm
-
-
-
-
14514,758
S lanes andwages
-
391,822
133,11
525,066
suppose
-
10,403
210739
221,142
-
Otherservi<¢antl<lerges
-
318,243
1288,545
16M,]88
-
roaloperatingexpenses
22931911
of
1812,166
25,636937
14514,758
Openting(Las) Ircane
(169,713)
10.3393
(218912)
5?868
(579,310)
Noneperal Revenue(Colone s)
Gain (Ing on sale of mob
14,182
-
(74814)
(60632)
-
Inlerestincome
355593
8,662
51
35],306
166251
!merest mpzme
(522921
(110 H13)
-
(663125)
Foal nonoperaoiny revenue
intense)
Fro51
(tai
(71]63,
(356a51)
166251
(Lms)mcane- Belle contrimrions and transfers
(349,230)
341,222
1293575)
(31
(413959)
Capital Contributed iron Developers
and Granb
51,132
-
-
51,132
-
Targets m(IN de5)
-
-
75,000
75,000
-
ChangeinNetAsets
(296,096)
341,222
(218575)
(15,451)
(413,059)
Netlseis-Beginnngofyear
85.739,410
2,835,937
5,611937
90.02o284
7509295
Net Aseis-Endofyear
$ 8.5A41,312
$ 3,1]],159
S 5,226}62
$ 93,841 $
7,096,236
Net Change in Net Assets- ToWEnterprise Fund
g (15,451)
Previously, a worlds of the Internal Service Fund activity was ecwdtlas a
Wsnesiypz
actedyln the gouemmenlwide fimnoal sta@rrenls. Beginning In fisd year
2009,
the variety is entirely repoatedas a governmental actanty.
(852,]031
Change inNet Assets d Bminhw-type Activities
S (1,028,169)
The Notes to Financial Statements are an 18
Integral Part of this Statement.
City of Livonia, Michigan
Proprietary Funds
Statement of Cash Flows
Year Ended November 30, 2009
Net ash used In cartel antl related
Nonrepr
manors activities
Won Enterry¢e
Fund
Enterprise Fmtl
(3334,101)
-
CwM1 Flows From Investing Activities
Mterand
Total EnterprM1e
Internal Service
Interest received of investments
Sewer
Housing
GdfCmrse
Fund
Fund
Cal Flows From Otani Audience
(6K
IN.
(61i
2,81],934
Ronnie from customers
a 25,011
a 1336313
a 1,599$65
a 27,953,835
$ 13.935E08
PaYmentatosup,ders
(16978365)
(334989)
(1,48,735)
(18,8Y,109)
(14,510,758)
PZYmentstoeV%e¢
(3,980095)
(368066)
(131
(0081
2,94875
other reaeip9t>9'mema
124,180
4,315
-
11
4,184031
Netash prwidtl s (usetl In) operates
$ 16,149,033
$ 186,154 $
280.3
$ 16}38,0]0 $
6,588,906
activities
4,183j57
637,603
(62,034)
4,799,126
(514,310)
Cal Fbvrs From Norcgital Financing Activities Net
$ 16,778674
$ 260,931 $
3,950
$ 11 a
9,025899
Vaskrs from other fund
-
-
75,000
75,000
-
CmM1 Flows From Carnal am Fell Financing
20679,086
254,931
3,950
2093],96]
9,025099
Andaman
145300531
(68,Imo]
(106](
(659389](
(2436993)
Contributions Tom customers
51,132
-
-
51,132
-
PencitelantlInterestMidmlongtermdN
(1,929,701
(507,150)
-
(2,436,858)
-
NetWrchasesofaPtelasets
(93824'1(
(10134)
(9463]5)
Net ash used In cartel antl related
manors activities
(281681
(507,150)
(10,134)
(3334,101)
-
CwM1 Flows From Investing Activities
Interest received of investments
358593
8,662
51
36],306
drezi
Not(Wrchasa) ales of Investment activities
(6K
IN.
(61i
2,81],934
Not cash (used in) prwidtllry
facing activities
(278189(
s
51
(360035)
2904185
Net Increase in CmM1 and Cal Equivalents
1088551
10l
2883
1192,930
2,94875
CmM1andCad Equivalents-Oeamber1,2008
15,060682
84598
-
15,114,080
4,184031
CmM1andCad Equivalents-Nwemher3020V3
$ 16,149,033
$ 186,154 $
280.3
$ 16}38,0]0 $
6,588,906
Balance SM1eet Chimerical of Cal am Fatah Equivalents
Cash and Investments
$ 16,778674
$ 260,931 $
3,950
$ 11 a
9,025899
ResVoletl assets (Note 7)
3,900,612
3,900,612
Total ash and investments
20679,086
254,931
3,950
2093],96]
9,025099
L�investments
145300531
(68,Imo]
(106](
(659389](
(2436993)
Net ash and ash equivalents
$ 16,149,033
$ 186,154 $
288.3
$ 16}38,0]0 $
6,588,906
The Notes to Financial Statements are an 19
Integral Part of this Statement.
City of Livonia, Michigan
Proprietary Funds
Statement of Cash Flows (Continued)
Year Ended November 30, 2009
The Notes to Financial Statements are an 20
Integral Part of this Statement.
Nonirejor
na-or FNerturise Fund
Fmerturse Funs
Mteram
total
Fmerpris
Internal Sema
Sewer
Noising
GiNfCourse
Fund
Fun
Reconciliation of Operating (Less) Incase to Net Cash
train Operating Activities
operating (os) mourns
s r6i s
443393
s (318,812) s
Mass
s (519MO)
Mijusnrems to reconcile operating ireonne (ow)
to not :ash Born operating activities:
oelxeciation
2sBt 732
in3B2
1A,]IIS
3,033182
-
ChangeslnasetsantlladlAies:
Roseman
1,gauaaa
-
3,911
1371,96!
-
Inventory,pretad,antldpaits
(1661E)
-
-
(36,818)
-
M<wnlsletede
300181
13,193
(23,A5n
36!,631
-
Accruedandoteerrouties
91400
4.290
610
gemo
-
oefanenrevenue
(AI,ran
-
-
(50791)
-
Boards antldpaits
-
4315
-
4,345
-
Net was pwidd Ly (wed in) operating
activities
$ 4,183,557 $
6.37,60.3
$ (620.341 $
4,7:5,126
$ (99318)
The Notes to Financial Statements are an 20
Integral Part of this Statement.
City of Livonia, Michigan
Fiduciary Funds
Statement of Net Assets
November 30, 2009
Liabilities
Accounts payable
Pension and
291,564
Accrued and other liabilities
Other Employee
2,534,883
Due to other governmental units
Benefits
Agency Funds
Assets
-
728,462
Cash and cash equivalents (Note 3)
$ 1,024,466
$ 12,232,809
Investments (Note 3):
-
U.S. government securities
23,544,387
-
Common stock
105,750,596
-
Corporate bonds
53,259,984
-
Foreign stock
3,327,524
-
Mutual funds
39,442,191
-
Real estate investment trust
8,989,318
-
Secudties lending short-term collateral bank
investment pool
3,804,860
-
Accounts receivable
236,179
-
Due from other governmental units
68,259
-
Due from other agency funds
728,462
Total assets
240,176,226
$ 12,232,809
Liabilities
Accounts payable
1,538,697 $
291,564
Accrued and other liabilities
-
2,534,883
Due to other governmental units
-
8,677,900
Due to other trust funds
-
728,462
Amounts due to broker under securities lending
agreement
3,999,996
Total liabilities
5,538,693 $
12,232,809
Net Assets- Held in trust for pension and other
employee benefits
$ 234,637,533
The Notes to Financial Statements are an 21
Integral Part of this Statement.
City of Livonia, Michigan
Fiduciary Funds
Statement of Changes in Net Assets
Pension and Other Employee Benefits Trust Funds
Year Ended November 30, 2009
The Notes to Financialstatements are an 22
Integral Part of this Statement.
Pension and Other
Employee Benefits
Additions
Investment income:
Interest and dividends
$ 8,594,477
Net change in fair value of investments
43,281,724
Less investment expenses
(492,325)
Net investment Income
51,383,876
Securities lending income:
Interest and fees
83,832
Borrower rebates and bank fees
24,558
Total securities lending income
108,390
Contributions:
Employer
5,682,256
Employee
1,430,360
Total contributions
7,112,616
Total additions
58,604,882
Deductions
Pension benefit payments
12,161,976
Medical benefit payments
6,627,655
Administrative expenses
193,622
Refunds of contributions
454,927
Total deductions
19,438,180
Net Increase
39,166,702
Net Assets Held in Trust for Pension and Other
Employee Benefits
Beginning of year
195,470,831
End ofyear
$ 234,637,533
The Notes to Financialstatements are an 22
Integral Part of this Statement.
City of Livonia, Michigan
Component Units
Statement of Net Assets
November 30, 2009
Assets
Cash and cash equivalents
A¢ounls receivable
Prepaid expeWilures
Capital assets (Note 4).
Norcepreoable caphal assets
Depreciable capital assets- Net
Total assets
Liadlities
&counts payable
Accrued andother liabildies
Noncurrent liabildies:
Dnewdhinoneyear
Due in more than one year
Total liadlhies
Net Assts
Inves6:tl in capital assets - Net of related debt
Unresincted
Total net assets
The Notes to Financial3tatements are an 23
Integral Part of this Statement.
Economic Plymouth Road
Development Development Total Component
Corporation Authority Units
$ 22,398 $ 3,296,869 $
3,319,267
- 50,018
50,018
- 18,000
18,000
- 474,448
474,448
8,722,010
8,72 ,olo
22,398 12,561345
12,583,743
- 79,268
79,268
- 1116,789
1,116,789
- 300,000
3,92000
300,0101)
3,92000
5506,057
5,506,057
- 4,886,458 4,886,458
22,398 2,168,836 2,191,228
$ ?2306 $ 7,055,288 $ 7,077,686
City of Livonia, Michigan
General rownues:
Taxes
Interest
Total general revenues
Change in Net Assets
Net Assets- Beginning of year
Net Assets- End of year
The Notes to Financial Statements are an 24
Integral Part of this Statement.
Program Reines
Operating Capital Grants
Charges for Grants aM aM
Expanses
Services Conlnbulions Contributions
Economic Devebpment Comorabnn -General
govem rant
$ 118
$ - $ - $ -
Plymouth Road Devebpment Authority:
Community and economic doWbpment
13]5,8]2
- - -
Interest onlongtermdebt
195,594
Total Plymou8i Road Dowlopment
Au0ionty
1,570,666
Total gmernnental activdies
$ 1,5]0,]&1
$ $ $
General rownues:
Taxes
Interest
Total general revenues
Change in Net Assets
Net Assets- Beginning of year
Net Assets- End of year
The Notes to Financial Statements are an 24
Integral Part of this Statement.
Not (Expense) Reins ai Changes in Net Assets
Economic Ply wffi Road
De bpment De bpment
Corporation Aothonty Totel
$ (118) $ - $ (118)
- (13]5,8]2) (1375,072)
(195,594) (195,594)
(1510,666) (1518,666)
(118) (1510,666) (1510,184)
- 1008,610 1008,610
417 15,6n 16,094
411 1024,281 1024,104
299 (546,319) (546,080)
22,099
1,601,667
1,623,166
$ 22,398
$
7,065,288
$
7,M,686
25
Component Units
Statement of Activities
Year Ended November 30, 2009
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies
The accounting policies of the City of Livonia, Michigan (the "City") conform to
accounting principles generally accepted in the United States of America (GAAP) as
applicable to govemmental units. The folloxirg is a summary of the significant
accounting policies used by the City of Livonia, Michigan:
Reporting Entity
The City of Livonia, Michigan's legislative branch is governed by an elected seven -
member council. The City's administration operates under the overall direction of an
elected mayor. The accompanying financial statements present the City and its
component units. The component units are entities for which the City is considered to
be financially accountable. Although blended component units are legally separate
entities, in substance, they are part of the City's operations. The discretely presented
component units are aggregated and reported in a separate column in the government -
wide financial statements to emphasize that they are legally separate from the City (see
discussion below fordescription).
Blended Component Units - The Municipal Building Authority of Livonia is governed
by a board that is appointed by the mayor. Although it is legally separate from the City,
it is reported as if it were part of the primary government because its primary purpose is
to finance and construct the City's public buildings. The operations of the Municipal
Building Authority are reported as a nonmajor Debt Service Fund.
Discretely Presented Component Units - The Economic Development Corporation
(EDC) was created to provide means and methods for the encouragement and
assistance of industrial and commercial enterprises in relocating, purchasing,
constructing, improving, or expanding within the City so as to provide needed services
and facilities of such enterprises to the residents of the City. The EDC's governing
body, which consists of eight individuals, is selected by the mayor and approved by the
City Council. Internally prepared financial statements for the EDC can be obtained from
the City of Livonia finance department at 33000 Civic Center Drive, Livonia, MI 48154.
The Plymouth Road Development Authority was created to encourage additional
economic activity and growth in the Plymouth Road business district. The Plymouth
Road Development Authority's governing body, which consists of 12 individuals, is
selected by the mayor and approved by the City Council. Internally prepared financial
statements for the Plymouth Road Development Authority can be obtained from the
City of Livonia finance department at 33000 Civic Center Drive, Livonia, MI 48154.
26
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
The Brownfield Redevelopment Authority was created, pursuant to Public Act 381 of
1996, to promote revitalization of environmentally distressed areas with the 36 -square
mile boundary of the City. The Brownfield Redevelopment Authority is funded
primarily by property tax revenue captures. The Brownfield Redevelopment Authority
is governed by a nine -member board that is designated by the mayor and appointed by
the City Council. The Brownfield Redevelopment Authority was established in
November2008 and had noactivity during the year.
The City has excluded the Housing Commission from this report. Even though the City
appoints the Housing Commission's directors, it does not have the ability to impose its
will.
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets and the
statement of activities) report information on all of the nonfiduciary activities of the City
(the primary government, which includes the blended component unit) and its discretely
presented component units. The effect of interfund activity has been removed from
these statements. Governmental activities, normally supported by taxes and
intergovernmental revenues, are reported separately from business -type activities,
which rely to a significant extent on fees and charges for support Likewise, the primary
government is reported separately from certain legally separate component units for
which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a
given function (governmental activities) or segment (business -type activities) are offset
by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. 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. Taxes and other items not applicable to specific programs are reported
instead as general revenue.
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. Major individual governmental funds and major individual Enterprise
Funds are reported as separate columns in the fund financial statements.
27
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
Measurement Focus, Basis of Accounting, and Financial Statement
Presentation
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund,
fiduciary fund, and component unit financial statements. Revenue is recorded when
earned and expenses are recorded when a liability is incurred, regardless ofthe timing of
related cash flows. Property taxes are recognized as revenue in the year for which they
are levied. Gants and similar items are recognized as revenue as soon as all eligibility
requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting. Revenue is
recognized as soon as it is both measurable and available. Revenue is considered to be
available if it is collected within the current period or soon enough thereafter to pay
liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. The
following major revenue sources meet the availability criterion: state -shared revenue,
state gas and weight tax revenue, district court fines, and interest associated with the
current fiscal period. Conversely, special assessments and certain federal grant
reirrbursements will be collected after the period of availability; receivables have been
recorded forthese, along with a "deferred revenue' liability.
Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, expenditures relating to compensated
absences, and claims and judgments are recorded only when payment is due.
The City reports the following major governmental funds:
General Fund - The General Fund is the City's primary operating fund. It accounts for
all financial resources of the general government, except those required to be accounted
for in another fund.
Refuse Disposal Fund - The Refuse Disposal Fund amounts for the operations of the
refuse disposal activities of the City. Funding is provided primarily through a local
property tax levy.
Community Recreation Fund - The Community Recreation Fund accounts for the
activities of the Livonia Community Recreation Center, ice rinks, and certain other
recreation activities. Funding is provided primarily by a local property tax levy and user
charges.
IN
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
The City reports the following major proprietary funds
Water and Sewer Fund- The Water and Sewer Fund accounts for the activities of the
water distribution system and sewage collection system. Funding is provided primarily
through u%rcharges.
Housing Fund - The Housing Fund amounts for the Newburgh and Silver Village
residential rental facilities. Funding is provided primarily through user charges.
Additionally, the City reports the following fund types:
Internal Service Fund - The Internal Service Fund is used to fund general, workers'
compensation, and employee healthcare liability claims and to purchase insurance that
provides excess general liability coverage for City employees and property. The fund is
finsnced primarily by charges to the various departments of the City.
Pension and Other Employee Benefits Trust Funds - The Pension and Other
Employee Benefits Trust Fund amounts for the activities of employee benefit plans that
accumulate resources for pension and other postemployment benefit payments to
qualified employees.
The City of Livonia Employees' Retirement System and the City of Livonia Health and
Disability Plan have been blended into the City's financial statements. These systems are
governed by a five -member pension board that includes three individuals chosen by the
City Council and/or the mayor. The systems are reported as if they were part of the
primary government because of the fiduciary responsibility that the City retains relative
to the operations of each system. The operations of the Employees' Retirement System
and the City of Livonia Health and Disability Plan are reported as a Pension and Other
Employee Benefits Fiduciary Fund.
Agency Funds - The Agency Funds account for assets held by the City in a trustee
capacity. Agency Funds are custodial in nature (assets equal liabilities) and do not
involve the measurement of results of operations.
Private sector standards of accounting issued prior to December 1, 1989 are generally
followed in both the government -wide and proprietary fund financial statements to the
extent that those standards do not conflict with the standards of the Governmental
Accounting Standards Board. The City has elected not to follow private sector standards
issued after November 30, 1989 for its business -type activities.
As a general rule, the effect of intedund activity has been eliminated from the
government -wide financial statements. Exceptions to this general rule are charges
between the City's water and sewer function and various other functions of the City.
29
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concemed.
Amounts reported as program revenue include (1) charges to customers or applicants
for goods, services, or privileges provided, (2) operating grants and contributions, and
(3) capital grants and contributions, induding special assessments. Internally dedicated
resources are reported as general revenue rather than as program revenue. Likewise,
general revenue includes all taxes.
When an expense is incurred for the purposes for which both restricted and
unrestricted net assets are available, the City's policy is to first apply restricted
resources.
Proprietary funds distinguish operating revenue and expenses from nonoperating items.
Operating revenue 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 revenue of the City's proprietary fund (Water and
Sewer Fund) relates to charges to customers for sales and services. The Water and
Sewer Fund also recognizes the portion of tap fees intended to recover current costs
(e.g., labor and materials to hook up new customers) as operating revenue. The portion
intended to recover the cost of the infrastructure is recognized as nonoperating
revenue. Operating expenses for proprietary funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenue and
expenses not meeting this definition are reported as nonoperating revenue and
expenses.
30
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
Property Tax Revenue
Properties are assessed as of December 31 and the related property taxes become a
lien when billed. These taxes are billed on July 1 and December 1 of the following year,
and are due on September 14 and February 14, respectively. After the final collection
on the last day of February, real property taxes are added to the county tax rolls. The
2008 taxable valuation of the City totaled $5.209 billion (a portion of which is abated
and captured by the PRDA). The millages levied by the City and the resulting revenues
are as follow:
Approximate
Revenue
Purpose of Millage Millage Rate (in Millions)
Operating purposes 4.0447 $ 20.20
Police 0.8088 4.01
Police and fire 1.2134 6.06
Library 0.8088 4.01
Refuse and recycling 2.3746 11.78
Industrial development 0.0100 0.05
Roads, sidewalks, and trees 0.8893 4.41
Recreation 0.7855 3.90
Transit and capital improvement 0.5000 2.48
These amounts are recognized in the respective General, Special Revenue, and Debt
Service Funds financial statements as tax revenue.
The delinquent real property taxes of the City are purchased by Wayne County (the
"County"). The County sells tax notes, the proceeds of which are used to pay the City
for these property taxes. Wayne County remitted its purchased delinquent real
property taxes in June 2009. Wayne County delinquent real property taxes have been
recorded as revenue in the current year.
Assets, Liabilities, and Net Assets or Equity
Bank Deposits and Investments - Cash and cash equivalents include cash on hand,
demand deposits, and short -tern investments with a maturity of three months or less
when acquired. Investments are stated at fair value. Pooled investment income from
the Investment Agency Fund is generally allocated to each fund using a weighted average
balance For the principal held for each fund on a daily basis.
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
Receivables and Payables - In general, outstanding balances between funds are
reported as "due to/from other funds." Any residual balances outstanding between the
governmental activities and the business -type activities are reported in the government -
wide financial statements as "internal balances." All trade and property tax receivables
are shown as net of allowance for uncollectible amounts.
Inventories and Prepaid Items - Inventories are valued at cost, on a first -in, first -out
basis. Inventories ofgovemmental funds are recorded as expenditures when consumed
rather than when purchased. Certain payments to vendors reflect costs applicable to
future fiscal years and are recorded as prepaid items in both government -wide and fund
financial statements.
Restricted Assets - The revenue bonds of the Enterprise Funds require amounts to be
set aside for construction, debt service principal and interest, operations and
maintenance, and a bond reserve. Unspent bond proceeds have also been set aside for
construction. These amounts have been classified as restricted assets, as well as
amounts on deposit at the County and the State being held for the construction and
debt service.
Capital Assets - Capital assets, which indude property, plant, equipment, and
infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in
the applicable governmental or business -type activities column in the government -wide
financial statements. Capital assets are defined by the City as assets with an initial
individual cost of more than $5,000 and an estimated useful life in excess of one year.
Such assets are recorded at historical cost or estimated historical cost if purchased or
constructed. Donated capital assets are recorded at estimated fair market value at the
date of donation.
Buildings, equipment, and vehicles are depreciated using the straight-line method over
the following useful lives:
Infrastructure 33 to 40 years
Road rights 33 years
Buildings and improvements 20 to 50 years
Machinery, equipment, and vehides 2 to 20 years
Water and sewer distribution systems 50 years
32
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
Compensated Absences (Vacation and Sick Leave) - It is the City's policy to permit
employees to accumulate earned but unused sick and vacation pay benefits. Under the
Citys policy, employees earn benefits based on time of service with the City. All
vacation and sick pay is accrued when incurred in the government -wide and proprietary
fund financial statements. A liability for these amounts is reported in governmental
funds only for employee terminations as of year end.
Long-term Obligations - In the government -wide financial statements and the
proprietary fund types in the fund financial statements, long-term debt and other long-
term obligations are reported as liabilities in the applicable governmental activities,
business -type activities, or proprietary fund -type statement of net assets. Bond
premiums and discounts, as well as issuance costs, are deferred and amortized over the
life of the bonds using the effective interest method. Bonds payable are reported net of
the applicable bond premium or discount. Bond issuance costs are reported as deferred
charges and amortized over the term of the related debt. In the fund financial
statements, governmental fund types recognize bond premiums and discounts, as well as
bond issuance costs during the current period. The face amount of debt issued is
reported as other financing sources. Premiums received on debt issuances are reported
as other financing sources while discounts are reported as other financing uses. Issuance
costs are reported as debt service expenditures.
Pension and Other Postemployment Benefit Costs - The City offers both pension
and retiree healthcare benefits to retirees. The City receives an actuarial valuation to
compute the annual required contribution (ARC) necessary to fund the obligation over
the remaining amortization period. In the governmental funds, pension and other
postemployment benefit costs are recognized as contributions are made. For the
government -wide statements and proprietary funds, the City reports the full accrual
cost equal to the current year required contribution, adjusted for interest and
"adjustment to the ARC" on the beginning of year underpaid amount, if any.
Fund Equity - In the fund financial statements, governmental funds report reservations
of fund balance for amounts that are not available for appropriation or are legally
restricted by outside parties for use for a specific purpose.
Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expenses during the
period. Actual results could differ from those estimates.
33
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 1 - Summary of Significant Accounting Policies (Continued)
In June 2007, the Governmental Accounting Standards Board (GASB) issued Statement
No. 51, Accounting and Financial Reporting for Intangible Assets, effective for the City's
2010 fiscal year end. This statement requires capitalization of identifiable intangible
assets in the statement of net assets and provides guidance for amortization of intangible
assets unless they are considered to have an indefinite useful life. This statement also
establishes specified conditions upon which internally generated intangible assets should
be recognized and amortized, including internally generated computer software. The
City is currently evaluating the impact this standard will have on the financial statements
when adopted. The City will implement GASB Statement No. 51 beginning with the
fiscal year ending November 30, 2010.
In March 2009, the Governmental Accounting Standards Board (GASB) issued Statement
No. 54, Fund Balance Reporting and Governmental Fund -type Definitions. The objective of
this statement is to enhance the usefulness of fund balance information by providing
clearer fund balance classifications that can be more consistently applied and by darifying
the existing governmental fund -type definitions. This statement establishes fund balance
classifications that comprise a hierarchy based primarily on the extent to which a
government is bound to observe constraints imposed upon the use of the resources
reported in governmental funds. Under this standard, the fund balance classifications of
reserved, designated, and unreserved will be replaced with five new classifications:
nonspendable, restricted, committed, assigned, and unassigned. The City is currently
evaluating the impact this standard will have on the financial statements when adopted.
The City will implement GASB Statement No. 54 beginning with the fiscal year ending
November 30, 2011.
34
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 2 - Stewardship, Compliance, and Accountability
Construction Code Fees - The City oversees building construction, in accordance
with the State's Construction Code Act, including inspection of building construction
and renovation, to ensure compliance with the building codes. The City charges fees for
these services. The law requires that collection of these fees be used only for
construction code costs, including an allocation of estimated overhead costs. A
summary of the current year activity and the cumulative surplus or shortfall generated
since.lanuary 1, 2000 is as follows:
Cumulative shortfall at December 1, 2008 $ (850,391)
Current year building permit revenue 1,518,132
Related expenses:
Direct costs $ 1,329,885
Estimated indirect costs 394,075
Total related expenses (1,723,960)
Current year net expenses (205,828)
Cumulative shortfall at November 30, 2009 $ (1,056,219)
Fund Deficits - The Golf Course Fund had a deficit of $64,692 in unrestricted net
assets at November 30, 2009. The Grants Fund had a deficit of $16,940 in unreserved
fund balance. The deficit in the Golf Course Fund will be eliminated by cost
management over several years. The deficit in the Grants Fund will be eliminated by
changing the tirring of grant reimbursement requests in future years.
Note 3 - Deposits and Investments
Michigan Compiled Laws Section 129.91 (Public Act 20 of 1943, as amended) authorizes
local governmental units to make deposits and invest in the accounts of federally insured
banks, credit unions, and savings and loan associations that have offices in Midiigan. A
local unit is allowed to invest in bonds, securities, and other direct obligations of the
United States or any agency or instrumentality of the United States; repurchase
agreements; bankers' acceptances of United States banks; commercial paper rated
within the two highest classifications, which matures not more than 270 days after the
date of purchase; obligations of the State of Michigan or its political subdivisions, which
are rated as investment grade; and mutual funds composed of investment vehides that
are legal for direct investment by local units ofgovemment in Michigan.
35
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 3 - Deposits and Investments (Continued)
The Pension Trust Fund and Retiree Health Care Fund are also authorized by Michigan
Public Act 314 of 1965, as amended, to invest in certain reverse repurchase agreements,
stocks, diversified investment companies, annuity investment contacts, real estate
leased to public entities, mortgages, real estate (if the trust fund's assets exceed $250
million), debt or equity of certain small businesses, certain state and local government
obligations, and certain other specified investment vehicles.
The City has designated five banks for the deposit of its funds. The investment policy
adopted by the Council in accordance with Public Act 196 of 1997 has authorized
investment in bonds and securities of the United States government and bank accounts
and CDs, but not the remainder of state statutory authority as listed above. The City's
deposits and investment policies are in accordance with statutory authority.
As permitted by state statutes and under the provisions of a securities lending
authorization agreement, the City of Livonia Employees' Retirement System (the
"System") (see Note 9) lends securities to broker-dealers and banks for collateral that
will be returned for the same securities in the future. The System's custodial bank
manages the securities lending program and receives cash as collateral. Borrowers are
required to deliver collateral for each loan equal to not less than 100 percent of the
market value of the loaned securities. During the year ended November 30, 2009, only
United States currency was received as collateral. The City then converts that cash
received as collateral into other investments. The market value of one of the
investments was deemed impaired during the year ended November 30, 2009, resulting
in a recorded loss of $195,136.
The System imposes a limit of $7.6 million during the fiscal year on the amount of loans
made on its behalf by the custodial bank. There were no failures by any borrowers to
return loaned securities or pay distributions thereon during the fiscal year. Moreover,
there were no losses during the fiscal year resulting from a default of the borrowers or
custodial bank.
The City of Livonia Employees' Retirement System and the borrower maintain the right
to terminate all securities lending transactions on demand. The cash collateral received
on each loan was invested, together with the cash collateral of other lenders, in an
investment pool. The average duration of such investment pools as of November 30,
2009 was four days because the loans are terminable on demand; their duration did not
generally match the duration of the investments made with cash collateral. On
November 30, 2009, the System had no credit risk exposure to borrowers. The
collateral held and the fair market value of the underlying securities on loan for the
System as of November 30, 2009 was $3,999,996 and $3,804,860, respectively.
36
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 3 - Deposits and Investments (Continued)
The City's cash and investments are subject to several types of risk, which are examined
in more detail below:
Custodial Credit Risk of Bank Deposits
Custodial credit risk is the risk that in the event of a bankfailure, the City's deposits may
not be returned to it. The City does not have a deposit policy for custodial credit risk.
At year end, the City had $31,739,031 of bank deposits (certificates of deposit,
checking, and savings accounts) that were uninsured and uncollateralized. The City
believes that due to the dollar amounts of cash deposits and the limits of FDIC
insurance, it is impractical to insure all deposits. As a result, the City evaluates each
financial institution with which it deposits funds and assesses the level of risk of each
institution; only those institutions with an acceptable estimated risk level are used as
depositories.
Interest Rate Risk
Interest rate risk is the risk that the value of investments will decrease as a result of a
rise in interest rates. The City's investment policy does not restrict investment
maturities, other than commercial paper which can only be purchased with a 270 -day
maturity. At year end, the average maturities of investments are as follows:
Investment Fair Value 0W5 Years 6tolOYears OwrlOYears
Primary Government
Bank investment pmts
$ 25945,761
$ 25,945,761
$ - $
-
City of Livonia Employees
Refirement System
Corporate binds
41949,241
10,767,239
12,647,823
18,534,979
Foreign binds
2,598,827
805,540
185,258
1688,829
US agency secunins
11,091918
-
3,814,669
8,87],249
US Treasury securities
6,196,533
5,938595
265,938
-
City of Livonia Retime Health
and Disability Benefits Plan
Corporate brads
11310,743
2,857,941
3,792,757
4,668,845
Foreign brads
728,697
256,635
53,784
418,278
US agency secunins
3815,317
-
1,105,985
2,789,332
US Treasury securties
2,440,619
2,279,892
63,825
97,782
37
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 3 - Deposits and Investments (Continued)
Credit Risk
State law limits investments in commercial paper to the top two ratings issued by
nationally recognized statistical rating organizations. The City has no investment policy
that would further lirrit its investment choices. As of year end, the credit quality ratings
of debt securities (other than the U.S. government) are as follows:
Inveshnent Fair Value Rating Rating Organization
BankinvesMentpods $ 2,937,688
Aaa
Mootlys
Bankinvestmentpods 46,4]9,66]
Al
S&P
Cerpoate bond 6936,524
AA4
S&P
Cerpoate bond 5,193,218
AA
S&P
Cerpoate bond 18,883,431
A
S&P
Cerpoate bond 28814,738
BBB
S&P
Cerpoate bond 87],3]5
BB
S&P
Cerpoate bond 357,888
B
S&P
Cerpoate bond 187/.786
NR
S&P
Foreign bonds 380,929
M
S&P
Foreign bonds 1,352,909
A
S&P
Foreign bonds 1593,686
BBB
S&P
US. agencies securRies 14987,235
NR
S&P
US- Treasury securities $451,689
AM
S&P
US. Treasury securi9es 185,463
NR
S&P
Component Unit- Bank
investment pools 3,296,869
Aaa
Mondys
Concentration of Credit Risk
The City places no limit on the amount the City may invest in any one issuer. More than
5 percent of the City's investments are the following:
Percent
ln%Ament
Fair Value
Invested
City of Livonia Employees Retirement System -
Oakmarklntema9onalMmualFund
$ 12,55 294
72154%
City of Livonia Retiree Health and Disability Benefits Plan
Oakmark lntematmal Mulual Fund
3587,983
678249'0
Foomis Sayles Growth Mulual Fund
5,698,759
1688839'0
Foomis Sayles Small Cap Mutual Fund
5,578,256
16658196
ID
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 4 - Capital Assets
Capital asset activity of the City's governmental and business -type activities
was as
follows:
Balance
Balance
December 1,
Diagonals and
November30,
2008
Redassifications
AcIdgions
Pdjustments
2009
Governmental Activities
Capital assets not being deprecated
Land
$ 34908,6]0
$ -
$ 6,019
$ -
$ 34914,1589
Constmction in progress
1387593
(]44,15515)
],831,415]
8,480,404
Subtotal
36,290263
(]44,15515)
7,8434815
-
43,395093
Capital ase6 beingdegreaated
Inketructure
81054359
-
4,012,195
-
84,15156554
Read! nghts
17056,715
-
2805n
-
17343292
Building: and i"roreirents
s2,181,W
744656
2n,496
(15,000)
93,123239
Ecuipnent and vehcles
31,517,On
(57142)
3,2tn.,719
(3,265,W6)
31474,1510
Subtotal
221,409,240
W,514
7850,987
(3,340046)
226,1507695
A nrulated depreciation:
Infrastructure
32,559,483
-
2,394,124
-
34,953007
Read! nghts
5,734161
-
517,232
-
6,251393
Buildings and i"rovenents
31,067431
-
2,016,15153
(1749)
33,082,345
Ecuipnentandvehicles
20,006,942
(5].142)
2,411]86
(2,9]0243)
19,385343
Subtotal
89,3158,017
(57142)
7339,815
(2,9]1`,992)
93,61`2,1588
Netcapital asets being deprecated
132,041213
744,655
511,182
(3152054)
132935007
Net governmental capital asets
$ 1158,337486
$
$ 8,354,15158
$ (3152054)
$ 1]0330,100
39
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 4 - Capital Assets (Continued)
Acmnulated depeaation:
Balance
Balance
puddings and building inprovenent
December1,
-
188,220
Disposalsand
Novernser30,
Landirrproverrent
2"
Bectssirations
Addaions
Adjustrent
2089
Busimss-type Activities
1,M313
-
169,C98
(218,890)
1,170,581
Capdal asset not being retreaded
1,502541
51,142
216,115
(381,501)
1,388243
Land
$ 5,164436
$ - $
-
$ -
$ 5,164,436
Construction in progress
3,191288
(3,1n,432)
855,288
(626,363)
8]9144
suttotal
8,X1124
(3,1n,432)
855,288
-
6,C43580
Capdal asset bein g depecated
$80,194215 E
$
(2,Cfi2,153) $
(81043) $
18,051019
Bulltlings and buildng inprovenent
9,443,484
-
-
",953)
9,382,531
Landinpovenent
2,916,044
-
-
-
2916,044
Vehicles
1,984,429
-
-
(218,890)
1,165,539
Manhin ery and equiprent
2,452,669
51,142
116,381
(421563)
2198,629
Water and sewer distribution
111055,170
3,1n,432
M,228,602
suttotal
133851196
3,230,514
116,381
(/W,4C6)
1?B,491345
Acmnulated depeaation:
puddings and building inprovenent
3,986030
-
188,220
(19,912)
4,504,338
Landirrproverrent
221OW7
-
116,642
-
2326,949
Vehicles
1,M313
-
169,C98
(218,890)
1,170,581
Machin at and equipre nt
1,502541
51,142
216,115
(381,501)
1,388243
Water and sewer distribution
53150098
2343141
55523195
suttotal
82019,?05
51,142
3,033,822
(626,363)
61,483906
Netcapdal asset being depreciated
71,832,491
3173432
(2917441)
(81503)
12001439
Net businesstypecapdal asset
$80,194215 E
$
(2,Cfi2,153) $
(81043) $
18,051019
40
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 4 - Capital Assets (Continued)
Capital asset activity for the City's component units for the year was as follows:
Balance Balance
December 1, Novennuer 36
2888 AddRions 2889
Campanent units- oevelopnent
authority:
Capital assets not being depreciated - Land
Capital assets being depreciated- Land
innorovenents
Amu nu laced depreciab on -Land
innorovenents
Net capital assets being depreciated
Net conyonent unit capital assets
$ 474,448
$ - $
474,448
15,434, 4
1ffi&42
15,611146
6,123,818
Maggs
6,895,135
1,322,836
Publicworks
9,311xtt
(589,254)
8,722010
1,935,569
Total governmental activities
$
$ 9,785,712
$ (589,254) $
9,196458
Depreciation expense was charged to programs of the pdrmrygovernment as follows:
Governmental activities:
General government
$
468,986
Public safety
1,322,836
Publicworks
3,612,414
Recreation and culture
1,935,569
Total governmental activities
$
7,339,805
Business -type activities:
Water and sewer
$
2,681,732
Housing
172,382
Golf course
179,708
Total business -type activities
$
3,033,822
41
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 4 - Capital Assets (Continued)
Construction Commitments - The City has active construction projects at year end.
At year end, the Citys commitments with contractors areas follows:
Spentto Remaining
Date Commitment
Street and sidewalk projects
$ 9,546,233 $
1,534,511
Water and sewer projects
3,492,211
875,614
Courthouse construction
6,365,596
1,863,778
Community recreation
707,340
1,193,745
Total $ 20,111,380 $ 5,467,648
Note 5 - Interfund Receivables, Payables, and Transfers
The City of Livonia Retiree Health and Disability Benefits Plan (the "VEBA") has an
interfund receivable of $728,462 from the Investment Administration Fund for
contributions payable to the VEBA as of the end of the year.
Interfund transfers reported in the fund financial statements are comprised of the
following:
Fund Transferred Free Fund Tanskrred To Amount
General Fund Nonmajorgovemmental funds $ 967,315'
Goff course Fund 75,000
Total General Fund 1,042,315
Community Recreation Fund Nonmajorgovemmenial funds 2,319,151 "
Nonmajorgovemmenial funds General Fund 490,000 ....
Nonmajorgovemmental tmWs 7,205,900 ...
Total nanmajorgovemmenial funds 7,M5,900
Total $ 11057,366
' Tanskr of unrestricted resources to finance capital prcaects and general oblgaton debt serHce in
accordance with budgetary authonzatims
" Tanskr ran the Community Recreation Fund tar debt service
... The majority of transfers are for gas and weight tax revenues Form Me Major Streets Fund to the Local
Streets Fund and from these fundslothe Road and Sidewalk Fund in accordaneewith Act51. Most
ofthe remaining lmnsfers relate to the Cilys mmmunity transd program.
.... Pnmanlytransferfmm the Public Safety Communication Fund to the General Fund to pay tar
eligible operating costs
42
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 6 - Long-term Debt
The City issues bonds to provide for the acquisition and construction of major capital
facilities. General obligation bonds are direct obligations and pledge the full faith and
credit of the City. Capital lease obligations are also general obligations of the
government. Special assessment bonds provide for capital improvements that benefit
specific properties and will be repaid from amounts levied against those properties
benefited from the construction. In the event that a deficiency exists because of unpaid
or delinquent special assessments at the time a debt service payment is due, the City is
obligated to provide resources to cover the deficiency until other resources (such as tax
sale proceeds or a re -assessment of the district) are received. Revenue bonds involve a
pledge of specific income derived from the acquired or constructed assets to pay debt
service.
Long-term obligation activity can be summarized as follows:
Interrst Prlmgal
Raa WurltY B%InnI9 Dm Mhn
Rani Rarga' Bahns Addmrs ReM61wv Enhlry&lars OneYmr
Gorrsnrr ll:nMuea
BUIIhIIg AUNohC/ Pont
2000 Rsrintlon Pont
Arrwmws.oe-99W9W
Wurlmtrro,gh2019
5m%
VWM s
2WW9 s
- s
Ow" s
1m9B9 s
1WW9
2001 Rsrratlon Bon6e.
nrrwmms,ue-5B, M
Mxorlrgmo,gh2019
599%
v5a99
1,32503
-
#05M
2mp99
258999
2N3 MBA Refunhlig Boms
Arrwm aissue -55130,09
325%-
sn5999-
Mxorlrgthrough 25
425%
L285 DW
3,5`5M
-
(110p
3,ALp99
115"
2W! MBA Refunhlrg Boms
Armunto issue -U(25iM
4 -
5125999-
Wurimthrough POP
475%
S17'S.999
IDi910 ODO
-
(1IDiO]11)
W790 OD]
12 "
209 MBA CwR CaNricOm Pont
ArtomM10issue -SBi%JM
3m%-5195999-
-
6 Q9
-
95000
1%"
Wi Tri nP thr ough 2m3
525%
5 5mO9
agIGIlisse oblPatlons
Elretrud Primer:
Arrwmws.oe-W5W9
sssu
Naturmthnvgh2911
3P%
WM
1NCE1
-
#02]4)
1913!
sjd
TrarsgIXbuon brsa':
Arrwntmasue-S 61912
315"M
Wurlrgmogh2m1
3m%
s1559n
451va
-
(1"r
3x,30
isnm
Taal gwernrrercal aaMtr 6m
9JIFM
35WB99
(11021hj
eoMU[I
15mW4
43
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 6 - Long-term Debt (Continued)
I Merest Prmtlpel
Rote Mewnty Bdadd Dul
Parges Ranges deal Meters PeMcnans Ennlry&lance OneV®r
Gmremnredal a¢Mties lCmeruml:
aver and den oduexem:
Genermuadutirdarre workers
corde�Ion,
and noarcn Imrsanico
rain Mote 9)
unam do:ure and pesidmrrelal
OPEB lladlllty
Cmrpeimled ademes
T dal gw er mmiel arrived
B ml nesstype adrvpas
Buildup AUNonC/ Bonds
2007 MBS. BeNndlrg pence
nruMMmne-S33B0,03
Maerldtrron9n2m5
Water Supply and N0e[xda 4ptanEral
209 Water Suppr andN4@M[a 4¢ten
Revenue Bond.
nrrwMMeeue-c MM
Matmlydthuxah2BB9
204Wde5upplyandv twae5ystesn
Revenge Rdundlrg Bmd.
nrrmlM Mmue-39300mo
Wul trunch 2012
Fred dale red arrunamon renedlm
all Water supply and vaawde SWtarn
Revenue Bond.
nrrmlM Msae -IV[ 005,COO
Mdund oar man 2020
2005 Water supay and Waetwde 5wmn
Revenue Refunding Bond.
nrrmlMMmoe-sg11am0
Mdund oar man 2020
Trial palm -type a¢Mty debt
Colney mMradual oblaearm:
Sidle Reeol.Id Fond loan -N heronm9ep
RoureVelley We4euMa Cm[rd 4¢tan
Arrunal Ed442047(3
Wurnatnrral
cher ad erne obligations
General lladllly durawoMen
condensation and nevi lremdnco
dalrre FN are e)
OPEB lladlllty
Conpermted adeences
Total deed -(roe aFlat es
Total gw er nnmel and
del nennWe aaties
3240"-
225% YS,W] 207,0] - Q0,(]0 23] all
44
298541
s
2596,e6d s
-
s 87901) s
2317,
s -
$K
713976
313Q
-
To 90
-
150341
1550,142
-
d91 urae
-
d&,S2
-
3 1280 W 3
(650905) S MW2136
7U7M
3614110
(ZiS,t
02E149
33193716
4750,52
12MuSPI
(4377 l3r4
url
40$520
s110(m
4m%
Y M
3BBgon
-
(e5M
2�0)]
410"
533%
2125000
125,03
-
a25,09m
-
-
315%-
aB50m-
4m%
31 o9,o00
37MM
-
(l deed 0q
2750000
965m9
P16,m0)
-
72 nes
(243,654)
359%-
lade)"
ade) 35u9%
5 (flVC
Mai"
IMM
-
a750am
3 000
died"
359%-
3150013-
503%
s1lu,om
406503
40603
14MM
-
(174]5)4)
1295}"5
1 74
3240"-
225% YS,W] 207,0] - Q0,(]0 23] all
44
298541
-
Q9 til
-
all
$K
231971
10238
(11]6371
Murat
150341
1550,142
10793
(21837)10
13510/65
1915341
3 0(008
3 1280 W 3
(650905) S MW2136
S 661401
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 6 - Long-term Debt (Continued)
I ermn Prmoai
Bae rvwnty Bainnim DmMhn
Braga' 14 ffi Bahnm MhRom BeM m E diM Nlla s OneYmr
Compone unL
1938 ew=M Da9oprt ft Bm6
nrrwm m me-.z7,mq
Wurim m wgh tam 4mre $3 s 215M s - s R15" s - s -
2g9eD==e oaaoprren Benamimmma
Mw anve-U4 O" 4m smpam-
Wuhmtft 9h2019 5e R55i" 1165 (15500 110"
TwI mnyw un[a mr s 4se s s p20000l s 4310" s mel]
Annual debt service requirements to matunty for the above bonds and note obligations
are as follows:
$ 390,000
$
180,400
$ 570,400
2011
410,000
Gowrnmental Mhvilies
164,400
Busimsa type Mhvfts
2012
430,000
Principal
Interest
Total
Pnncipal
Interest
Total
2010
$ 1,500,804
$ 1857,684 $
3,358,488
$ 1]33,990
- $ 522,296 $
2,256,286
2011
1673,636
1]92,18]
3,465,823
1]93,990
- 459,439
2,253,429
2012
1585,000
1]26,484
3,311,484
1844,995
- 393,451
2,238,446
2013
1140,000
1661,084
3,401884
1221645
- 324,246
1545,291
2014
1865,000
1589,840
3,454,840
1211645
- 261,969
1479,034
2015-2019
10,510,000
6,725,213
17,295,213
4,560,224
- 6]5,1]2
5,235,396
2020-2024
10,910800
4,414,128
15,384,128
841,041
- 34,400
815,441
2025-2829
10,420600
2,048,815
12,468,875
-
-
-
2030-2035
3120,000
266,513
3,986,513
Total
$ 44,044,440
$ 22,082,608 $
66,121,048
$ 13,206,336
$ 2,616,993 $
15,883,329
-M untisred
lhythedeterredcostoftnanam.
Totaldekrralintheamountof$2n,664.
Component Units
Principal
Interest
Total
2010
$ 390,000
$
180,400
$ 570,400
2011
410,000
164,400
574,400
2012
430,000
147,600
5A,600
2013
455,000
129,331
584,331
2014
475,000
109,569
584,569
2015-2019
2,150,000
204,163
2,354,163
Total
$ 4,310,000
$
935,463
$ 5,20.5,463
45
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 6 - Long-term Debt (Continued)
In prior years, the City defeased certain bonds by placing the proceeds of new bonds in
an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust accounts' assets and liabilities for the defeased bonds are not
included in the basic financial statements. At November 30, 2009, $33,395,000 of
bonds outstanding are considered defeased.
No Commitment Debt - The City has issued Industrial Development Revenue Bonds
and Economic Development Corporation Bonds under state law which authorizes
municipalities under certain circumstances to acquire and lease industrial sites, buildings,
and equipment and lease them to third parties. The revenue bonds issued are payable
solely from the net revenue derived from the respective leases and are not a general
obligation of the City. After these bonds are issued, all financial activity is taken over by
the paying agent. The bonds and related lease contracts are not reflected in the City's
financial statements. Information regarding the status of each bond issue, including
possible default, must be obtained from the paying agent or other knowledgeable
source. The aggregate original issue amount was $81,422,000.
Note 7 - Restricted Assets
The balances of the restricted asset accounts are as follows:
Business -type
Activities -
Water and
Sewer Fund
Cash and cash equivalents
Revenue bond reserves
$ 2,878,021
Bond proceeds
1,022,591
Total cash and cash equivalents
3,900,612
Assets held by Wayne County
260,102
Total restricted assets
$ 4,160,714
Business -type Activities - In accordance with the provisions of the Water Supply and
Wastewater System Revenue bonds, the City is required to set aside monies in a bond
reserve account. At November 30, 2009, the City set aside $2,878,021 to comply with
these requirements.
46
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 7 - Restricted Assets (Continued)
Bond proceeds held in the amount of $1,022,591 in the Water and Sewer Fund relate to
excess funds from the 2006 Water Supply and Wastewater System Revenue bonds to be
used for future water and sewer obligations.
The City also has assets of $260,102 held at Wayne County that are restricted for future
water and sewer obligations.
Note 8 - Risk Management
The City is exposed to various risks of loss related to property loss, torts, errors and
omissions, and employee injuries (workers' compensation), as well as medical benefits
provided to employees. The City has purchased commercial insurance for medical
benefits and workers' compensation and participates in the Michigan Municipal Risk
Management Authority (the "Authority").
The Michigan Municipal Risk Management Authority risk pool program operates as a
claims servicing pool for amounts up to member retention limits and operates as a
common risk -sharing management program for losses in excess of member retention
amounts. Although premiums are paid annually to the Authority that the Authority uses
to pay claims up to the retention limits; the ultimate liability for those claims remains
with the City.
The City estimates the liability for general liability, workerscompensation, and medical
claims that have been incurred through the end of the fiscal year, including claims that
have been reported as well as those that have not yet been reported. These estimates
are recorded in the Self-insurance Internal Service Fund. The estimated liability for
property loss, general liability, workers' compensation, and medical claims is recorded
within the governmental activities and business -type activities columns of the statement
of net assets. Changes in the estimated liability for the past two fiscal years were as
follows:
General❑abildy Workers' Compensation Medical Claims
2889 2888 2889 2188 2889 2888
Estimated liability
Beginning drain
$ 1043,454
$ 484,65 $
981593
$ 1,131580
$ 864,469
$ 873,440
Edimmted daimm
incurmc, including
on an ges in estimates
1258,9(o`
2280,556
359,009
616,326
1289,842
11824,519
Claim gaynents
(i7r3,594)
(1n1,769)
(Sa5,3n
(760,363)
(12a13496)
ry1 a3a,ss1)
Estimated liability -
End ofrar
$ 528,M
$ 10f3 $
841191
$ W,513
$ 941864[
$ 8B4,488
47
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 9 - Pension Plans
Retirement System
Plan Description - The City of Livonia Employees' Retirement System (the "System")
is a single -employer defined benefit pension plan that is administered by the City of
Livonia Employees' Retirement System; this plan covers the following employees of the
City unless they elected to transfer to the City's 401(a) defined contribution pension
plan (see Note 10):
0 General employee members - All members hired prior to March 17, 1997 and their
beneficiaries
0 Police lieutenant and sergeant members - All merrbers hired prior to December 8,
1997 and their beneficiaries
0 Police officer members - All members hired prior to November 24, 1998 and their
beneficiaries
0 Firefighter members - All members hired prior to July 1, 1998 and their beneficiaries
The System provides retirement, disability, and death benefits to plan members and
their beneficiaries. At November 30, 2008, the date of the most recent actuarial
valuation, membership consisted of 546 retirees and beneficiaries currently receiving
benefits and terminated employees entitled to benefits but not yet receiving them, and
236 current active employees. The System does not issue a separate financial report.
Contributions - Plan member contributions are recognized in the period in which the
comtributionsaredue. Employer contributions to the plan are recognized when due and
the employer has made a formal commitment to provide the contributions. Benefits
and refunds are recognized when due and payable in accordance with the terms of the
plan. Please refer to Note 1 for further significant accounting policies.
The obligation to contribute to and maintain the System for these employees was
established by negotiation with the City's collective bargaining units and requires a
contribution from the employees from 2.55 percent to 5.21 percent. The funding policy
provides for periodic employer contributions at actuarially determined rates.
Administrative costs of the plan are financed through investment earnings.
Em
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 9 - Pension Plans (Continued)
Annual Pension Cost - For the year ended November30, 2009, the City was not
required to and did not make a contribution. The annual required contribution was
determined as part of an actuarial valuation at November 30, 2007 using the aggregate
cost method. Significant actuarial assumptions used include (a) an 8.25 percent rate of
return and (b) projected salary increases of 4.75 percent to 12.67 percent per year.
Both (a) and (b) include an inflation component of 4.75 percent The actuarial value of
assets was determined using techniques that smooth the effects of short-term volatility
over a five-year period. The unfunded actuarial liability is being amortized as a level
percentage of payroll on a closed basis. The remaining amortization period is the
expected future working lifetime. The pension cost for the three most recent years is
asfollows:
Fiscal Year Ended November 30
2007 2008 2009
Annual pension cost (APC) $ - $ - $ -
Percent ofAPCcontributed 100% 100% 100%
Net pension obligation $ - $ - $ -
Reserves - As of November 30, 2009, the plan's reserves have been fully funded as
follows:
Legally required reserves:
Reserve foremployees contributions $ 9,700,622
Reserve for retired benefit payments 52,861,793
Additional reserves - Reserve for employer contributions 119,980,708
Total reserves $ 182,543,123
Three-year trend information is as follows:
-Valued usingroe bre-years000roeci Enemy oorWvalue
49
Actuarial
Actuarial
Funded
Dvermnded
Actuarial
Value of
Accrued luabaity
Dverrundeci
Ratio
Covered
A asa
Valuation
Assets`
(ADL)Entry Age
ADL(UAAL)
(Percent)
Payroll
Percentage of
Date
(a)
(b)
(fa)
(Nb)
(c)
Covered
11130M
$ 205,101
$ 169,506
$ (35.595)
1210
$ 16,135
(2206)
11130107
215,675
173,486
(42,189)
1243
15,657
(2695)
11130708
210,519
179,096
(31,423)
1175
16,055
(1957)
-Valued usingroe bre-years000roeci Enemy oorWvalue
49
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 10 - Defined Contribution Pension Plan
The City established a defined contribution pension plan under Section 401(a) of the
Internal Revenue Code for the following employees:
N General employee merrbers -AII members hired on or after March 17, 1997
B Police lieutenant and sergeant members - All members hired on or after
December 8, 1997
B Police officer members - All members hired on or after November 24, 1998
0 Firefighter members - AII members hired on or after July 1, 1998
In addition, the plan covers all employees electing to transfer from the City's defined
benefit pension plan (see Note 9).
In a defined contribution plan, benefits depend solely on amounts contributed to the
plan plus investment earnings. As established by the City through collective bargaining
agreements, the City contributes a percentage of employees' earnings as follows:
Employees Transferring
New Employees HinA
from the Definetl Benefit
Arierlhe Ef tw Dates
Pension Plan
NoW Mow
Empbyer Employee
Empbyer Employee
C tntuhon Contntuhon
Contribution Contribution
General 13% 31%to 3.66% 8% 31%to 366%
Police lieutenants and sergeants 13% 521% 11% 521%
Police 13% 5% 11% 5%
Fire 13% 356% 11% 356%
The employee contribution percentages noted above represent the minimum required
contribution. Employees are permitted to contribute additional amounts up to the
rmlumum allowed by law.
The City's contributions for each employee (plus interest allocated to the employee's
account) are fully vested after four years of service.
In accordance with the above requirements, the City contributed $2,274,273 during the
current year and employees contributed $779,541.
50
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 11 -Other Postemployment Benefits
New Accounting Standard - In the current year, the City implemented the
Governmental Accounting Standards Board's Statement No. 45, Accounting and
Reporting by Employers for Postemployment Benefits Other Than Pensions. The new
pronouncement provides guidance for local units of government in recognizing the cost
of retiree health care, as well as any other postemployment benefits (other than
pensions). The new pronouncement causes the government -wide statements and the
proprietary funds to recognize the cost of providing retiree healthcare expenses over
the worlang life of the employee, rather than at the time the healthcare expenses are
paid. This statement was implemented prospectively. GASB Statement No. 45 required
an amortization period of 30 years. The City was previously using a 40 -year
amortization period. Implementing the statement caused an additional expense to be
reported in the governmental activities of $494,552 and the business -type activities of
$20,555 in excess of what would have been reported in prior years.
The City of Livonia Retiree Health and Disability Benefits Plan
Plan Description - Effective November 4, 1998, the City created the City of Livonia
Retiree Health and Disability Benefits Plan (the'VEBA"). The plan provides medical and
healthcare benefits, including hospitalization and disability benefits, for the welfare of all
retirees and their spouses and eligible dependents. At November 30, 2008, the date of
the most recent actuarial valuation, membership consisted of 665 active participants,
632 retired participants, and 35 inactive vested participants. After November 4, 1998,
all contributions related to postemployment benefits for all members of the defined
benefit pension plan and defined contribution pension plan and their beneficiaries will be
recorded as revenue in the Citys Other Employee Benefits Trust Fund.
Eligibility - All retirees of the defined benefit pension plan and the defined contribution
pension plan and their beneficiaries and future retirees who complete 10 years or more
of credited service are eligible.
Contributions - Employer contributions to the trust are recognized when due and the
employer has made a formal commitment to provide the contributions. Benefits are
recognized when due and payable in accordance with the terns of the plan.
The obligation to contribute to and maintain the System for these employees was
established by negotiation with certain bargaining units, including general and
administrative employees. These employees are required to make a contribution of
2 percent beginning December 1, 2006. The funding policy provides for periodic
employer contributions at actuarially determined rates. Administrative costs of the plan
are financed through investment earnings.
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 11 - Other Postemployment Benefits (Continued)
Funding Progress - For the year ended November 30, 2009, the City has estimated
the cost of providing retiree healthcare benefits through an actuarial valuation as of
November 30, 2007. The valuation computes an annual required contribution, which
represents a level of funding that, if paid on an ongoing basis, is projected to cover
normal cost each year and amortize any unfunded actuarial liabilities over a period not
to exceed 30 years. This valuation's computed contribution and actual funding are
summarized as follows:
Annual required contribution (recommended) $ 6,197,363
Amounts contributed- Contribution to VERA (5,682,256)
Increase in net OPEB obligation 515,107
OPEB obligation - Beginning of year
OPEB obligation - End ofyear $ 515,107
The annual OPEB costs, the percentage contributed to the plan, and the net OPEB
obligation for the current and two preceding years were as follows:
Fiscal Year Ended November 30
2007 2008 2009
Annual OPEB cost $ 6,455,607 $ 6,218,636 $ 6,197,363
Percent of OPEB cost contributed 100% 100% 92
Net OPEB obligation $ - $ - $ 515,107
The funding progress of the plan as of the most recent valuation date is as follows:
.Valuedusingroe Wn yearsmoroed Ending nrerbavalue
52
Actuarial
Actuarial
Funded
UAAL as
Actuanal
Value of
Accrued Uabildy
Unfunded
Ratio
Covered
Percentage of
Valuation
Assets`
(AAL)Entry Age
P (DAAL)
(Percent)
Payroll
Covered
Date
(a)
(b)
(s a)
(db)
(c)
Payroll
11130106
$ 47,673
$ 122,267
$ 74,59s
390
$ 3x,373
2170
11130107
62,802
115,sas
62,333
u6
as,3sa
1179
11130103
w,a61
122,117
66,780
u3
37,aoa
M5
.Valuedusingroe Wn yearsmoroed Ending nrerbavalue
52
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 11 - Other Postemployment Benefits (Continued)
Reserves - As of November 30, 2009, the plan's reserves have been fully funded as
follows:
Reserve for health insurance $ 50,049,046
Reserve for disability insurance 2,045,364
Total reserves $ 52,094,410
Actuarial Methods and Assumptions- 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 supplemental information following the notes to financial statements,
presents multiyear trend information about whether the actuarial value of plan assets is
increasing or decreasing overtime relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the substantive plan
(the plan as understood by the employer and the plan members) and include the types
of benefits provided at the time of each valuation and the historical pattern of sharing of
benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of
assets, consistent with the long -tern perspective of the calculations.
In the November 30, 2008 actuarial valuation, the entry age actuarial cost method was
used. The actuarial assumptions included an 8.25 percent investment rate of return (net
of adrrinistrative expenses), which is a blended rate of the expected long-term
investment returns on plan assets and on the employer's own investments calculated
based on the funded level ofthe plan at the valuation date, and an annual healthcare cost
rate of 6 percent for fiscal year 2009, 5.5 percent for the following year, and 4.75
percent thereafter. Both rates included a 4.75 percent inflation assumption. The
actuarial value of assets was determined using techniques that spread the effects of
short-term volatility in the market value of investments over a five-year period. The
IJAAL is being amortized as a level percentage of projected payroll on an open bass,
over 30 years.
53
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 12 - Pension and Other Postemployment Benefits
The following are condensed financial statements for the City's defined benefit plan
(see Note 9) and the postemployment healthcare plan (see Note 11). The plans do not
issue separate financial statements.
54
Employees'
Retirement System
VEBA
Statement of Net Assets
Assets
Cash and investments
$ 186,592,838
$
52,550,488
Other assets
304,438
728,462
Total assets
186,897,276
53,278,950
Liabilities
4,354,153
1,184,540
Net Assets
$ 182,543,123
$
52,094,410
Statement of Changes in Net Assets
Investment income
$ 40,390,782
$
11,101,484
Contributions
540,733
6,571,883
Benefit payments
(12,136,697)
(6,652,934)
Other decreases
(631,761)
(16,788)
Change in Net Assets
$ 28,163,057
$
11,003,645
54
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2009
Note 13 - Deferred Revenue
Governmental funds report deferred revenue in connection with revenue that is not
considered to be available to liquidate liabilities of the current period. Governmental
funds and Enterprise Funds also defer revenue recognition in connection with resources
that have been received but not yet earned. At the end of the current fiscal year, the
various components of deferred revenue are as follows:
Property taX spedal assessamnt,
and other receivables
comrunTy recreation renter
annual paves
Interest renderable on sewer
ections
Assets held A Wayne County
Grant revenue not renewed!
within 60 days
Total
Govemimntal businesstype
Governimntal Funds xtivaies xtivaies
Unavailable Unearned Total Unearned Unearned
$ 1,02,M $ - $ 1632,6A5 $ - $
673,656 6736:5 673,656
212,358
260102
305,811 305,811
$ 1938,456 $ 613,656 $ 2,612,112 $ 613,656 $ 532,460
55
Required Supplemental Information
56
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule - General Fund
Year Ended November 30, 2009
Expenditures
Generali mment
Variance w0h Finel
Legislative:
Original Budget
Final Bucket
Muni
Budget
Rearnmem
$ 383,996 $
382,996 $
370,977 $
10,021
PrcgerlyReal8
385'x,863 8
38552,063 8
38261,682
8 (260.383)
Licemes and Permits
329,78
329,798
25857!
79,221
Business
162,500
1'3,500
128514
(01,956)
Nonwsiness
zlaip0o
2183.400
ifigrai
(716810)
Total themes and Permits
z3as,g0o
23,15,900
1575,098
Ino,BN)
Intergw'emmental Revenue
Shale and loal
8,981 $i5
8,981555
7,900,993
(1,076,556)
Federal
164FS72
161,512
182362
17,790
Total intergovernmental revenue
9.146.127
g,165,12]
8,081361
(1,058766)
Charges br Seri
3507,461
3,518,218
3}08,676
(209,542)
Interest
1,803,030
1,803,000
3]0,7]6
(1025220)
Fines and Forfeitures
3,856,000
3,895,000
3502089
(393,911)
Miscellaneous Revenue
Rent and rganies
1,517,032
1,511892
1501,291
241lN
sale of fixed assets
90,000
90,000
rel
(3075)
Other maaelanenes
1523,987
1523,987
1,316,412
(2107575)
Taal mscelanema revenue
3134,019
316,073
2,91
1786751
Total revenue
$ 50,378,630 $
541392,387 S
50,060}06
$ (4,332,081)
Expenditures
Generali mment
Legislative:
City Cannon
$ 383,996 $
382,996 $
370,977 $
10,021
City Clerk
531,228
531,223
075,862
58,35
Flectom
329,78
329,798
25857!
79,221
Total legislative
1253,020
1'253,020
1,101416
151,608
Ltical
3,15,731
3,195,731
3,186876
8,882
Executive-K"i office
518822
510,852
471,742
39,110
Havre
HwregRel9iewa Counsel
6,482
6,082
0,244
220
Labor relations
142,000
142,000
70,031
mi
Civil service
70150
701681
622901
118,743
Total human resources 890;166 890,15 701,219 188,9,17
57
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended November 30, 2009
variance with Finel
Original Budget Final Budget Actual Budget
Exo nditw§s i Ccut III IFI
General Gocel h (Continued
Fimndalad-niaraonn
s 481,015 s
481,015 s
4128W s
74,215
h.=nnnon:
eviiy
65,897
601,897
579,488
29,409
Finance
z5,062
z5,01?
248,350
18665
Independent audit
62,048
61,018
63,891
3,15
Board of Review
4,44
6,85
5,161
1,689
Treasurer
581,630
581,638
523,8ffi
526v
Inbrifirstim systems
700,582
700,581
543,209
157,293
Total bamial adnnistratim
2,711,018
2711,818
2,381,971
329,039
Other activities:
Legal
]483]6
]483]6
699,407
48,916
IIIiIAi¢ atl supplies
]45,]02
]45,]01
721,375
25301
lac46iton of land
9,000
9,00
-
9,007
Research and Investigation
II
II
18,007
-
Dueaandsumcngions
53,000
53,000
42918
notes
Total other affil
1518,078
1575,078
1,481,75
93322
Total general government
10,135 E61
10,135,861
9324,950
810,911
Public Safely
Police
Tragic bureau
]91,71]
1,2]7,]0
12]4,3]1
3,346
Administration
2+`95.951
25®,451
2,45,014
114,0.31
Debates bureau
2600,211
2812,271
2807,241
6,030
Antnmctaa aervi<e
646750
518,750
486,272
324]8
Commin�tiordRecwd bureau
793,959
]14,95
768,993
5,907
Crowns guard
54,'05
54,525
49,445
5,039
&Md liaison
501,215
501,275
515,107
23175
Reserve pais
210,00
335030
331,9T]
3,10
Patrol bureau
11,853,931
11,161937
11,131,90
38091
Intelligence bureau
1,450,076
1,465,0766
1461,950
3,126
Total pare
21,533j1
21,515,061
21282223
232824
Fire
Amniasmation
1012,54
1002,564
848,354
15,210
Firefghing
9,592936
10,006,693
9,932501
14,192
Fire pevention
486199
496,193
490,339
5,861
Total fire
11,491,689
1155"045
11}31193
174,263
Protective inspectinn
Balding Code Board ofAgal
%I
%1
1%
662
Inspection
1349,310
1349,370
1222684
126,686
Total protective inspection
1350231
135,231
1222883
127,348
Omer protedw
Office of emerg ency preparedness
16158
li
154,641
5,417
TraRiccommsion
5,833
5,683
5,55
130
Total other Protedive 67241 165741 160,191 5,547
Total Pisal 14,521,]21 0,535,40 33,936,493 539,986
I
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule - General Fund (Continued)
Year Ended November 30, 2009
59
Nonan with Final
Original Budget
Final Budget
Actual
Budget
Expenditures (Continuant
wah wark
Pudicservss- H;ghwars, streets, and
neuntenance
Engineering
8 658,661 8
658,661 8
099641 8
159,828
Park rhardemns
1;163263
1;163263
982886
188,3n
Administration
21,812
31,812
13,056
18,756
Egc;prent naunlenance
182,9E0
182,9E0
(518983)
621,847
Bunning nuintemnce
1755,98)
1635989
1026,EE5
289jM
Sheet lighting
319,129
359,129
Bell
1826!
Maintenance
Reels
15l
76151
61692
8,152
Tramcsi
151806
151886
11
27,100
Forestry
23;155
23,155
638
22ju
Tonal who work
6,193,913
1,199913
2,912,818
1257,895
Park and Recreation and Cultural
Paris and recreation:
Administration
411,481
10.5081
WsBs
588
Recreation halides
0.3;121
33,121
31687
1511
Recreation athletic
128,819
181,819
182,16]
1552
T ohl perk antl recreatm
582
582,624
578978
3,651
Cultural:
Historic Predemtion Commisim
5,484
5,484
2,666
2,818
Historical Commission
93255
93255
W507
6,718
Libary Commission
0.56888
0.56888
0.56888
-
AreConmision
21586
21586
23661
822
Conoid resources
971219
971219
girt'm
69267
Youth Coral
18,M8
18,M8
18,928
7,128
Camn;s;on on Aging
18555
18555
8,118
2,408
T ohl culWrsi
1576,898
1576,898
1686987
89,191
Tonal perk antl recreation antlNtural
2,158,]22
2,158,]22
2,86587]
92815
Coa.nunity and Easel He.elap,mem
Cdr Planning Conm;eeon
697,962
Bel
W512
153 Q58
Zoning Board ofAlatxals
ib,ll6
131,116
rFr 5
56,893
Total commurelyand economh
devekPnem
832,403
832,403
622,065
210,313
5nP1%ee 9enelR; Insurance, and other
2523,316
2523,316
180.5231
1,483,835
Total wgencHurs
$ 51,371912 $
51,391,699 $
19,996631 $
1,395,815
59
City of Livonia, Michigan
community Recreation
Orginal Fnal Variance with
Bunter Budget &teal Fnal Budget
Rownues
PropzByta m
8 3939,N5 8
3939,N5 8
3,E18109
8 (41.3%)
charges Mservic¢
3575538
3575538
3,400,919
(1 11)
Interest
258888
258888
121,00
(12895v�
Miscellaneous revenue
1,088
1,088
41,629
08,629
T otal revenum
],]65995
],]65995
],E61]81
(30,294)
Expenditures
Sanitation
-
-
-
-
Recreationandcunure
6,421922
8,481
6,885,637
2,482249
Trani out
2,320,024
2,320,024
2,319,151
sit
Tuul expenmuris
8,741950
10,807,914
5324,]84
2,413,126
Excess of Revenues (under) Own
Expenditures
(975955)
(3019195
(853,06
2,11
FUN Balanceherringofyear
5,621806
5,621806
5,621806
-
Fula Balance -End ofyear
$ 4,645851 $
25N,88) $
4,]58,]19
52,1]$832
60
Required Supplemental Information
Budgetary Comparison Schedule
Major Special Revenue Funds
Year Ended November 30, 2009
Reuse oiapoml 6yalem
Orginal
Fiml
5,Q
Vmiance with
Bud3e1
Budget
Mival
Fiml Bute1
S 6,7,10,324 $
519651931 $
7,081 $
1,118491
8 11,9D1,170 8
111909,170 8
11,781,2W
8 (124.9%)
135AB
135500
112383
(23,1321
350,W0
350,000
153,531
(11
25,W0
251000
13,0.39
(11561(
120N,610 12019,6]0 12,0635!2 (3561281
12]A,311 11 12,058,015 1676,619
11 13532,706 12,058,015 1676,619
(339611)
(1,113,034)
5,Q
1118,091
7M,19
7,0]9965
7,0]9915
-
S 6,7,10,324 $
519651931 $
7,081 $
1,118491
61
City of Livonia, Michigan
Required Supplemental Information
Pension System
Schedule of Funding Progress
(000s omitted)
Aduanal
Aduanal
Funded Overfunded
Actuanal Value of
Accrued Liability
overfunded Ratio Covered AAL as
Valuation Assets
(A )EntryAge
AALRJA ) (Percent) Payroll Percentage of
Date (a)
(b)
(ba) (Nb) (c) Covered Payroll
11130103 S 293505
E 159,9W
E (43,605) 1273 E 17103 (2549)
1113054 199578
104,3]8
(35.200) 1214 16,0n0 (2190)
11/30M 200,005
167226
(32,7]9) 1196 15,88.5 (25.4)
11/30M 295,191
169,506
(36595) 1210 16,135 (zm6)
11/30IW 215,675
173,486
(42,189) 1243 15,65/ (2695)
11130108 210,519
179,996
(31,423) 1175 16,055 (1957)
`Valued min groa We -year smooth ed funding market value
Schedule of Employer Contributions
Annual
Year Ended
Actuarial
Required Percentage
November 30
Valuation Date
Contribution Contributed
2004
11/30/02
$ 392,639 100
2005
11/30/03
- 100
2006
11/30/04
- 100
2007
11/30/05
- 100
2008
11/30/06
- 100
2009
11/30/07
100
The schedule of funding progress presented above was determined as part of the actuarial
valuations at the dates indicated.
Additional information as of November 30, 2008, the latest
actuarial valuation, follows:
PCWanal cost methetl
Aggregate(emplover contribution)
Entry age nominal (sdnetlule of fuiWing progress)
Amortization melhatl
Level percent, dosed
Remaining amortization pend
Exixi future working lifetime
Asset valuation melhotl
Five: }ear smoothed market
PCWanal assumptions:
Investment rate of rehim
825%
Projected salary increases, including inflation
at 475%
475% 1267%
62
City of Livonia, Michigan
Required Supplemental Information
Retiree Health and Disability Benefits Plan
Schedule of Funding Progress
(000s omitted)
. Valued usin g roafiue- year ^amour ed mndin gnerlret value
Schedule of Employer Contributions
Year Ended
November 30
Actuarial
Actuarial
Contribution
Funded
2004
11/30/02
Actuanal
Value of
Accrued Liability
Unfunded
Ratio
Covered
UAOL as
Valuation
Asseh-
(AAL)EntryAge
AAL(UA )
(Percent)
Payroll
Percentage of
nate
(a)
(b)
(ba)
left
(c)
Covered Payroll
6,218,639
100
2009
11/30/07
6,197,363
5,682,256
92"
11130103
$ 30,475
$ 104,386
$ 73,911
292
$ 34084
2168
11130101
37690
110,1Y
72,466
342
33,355
2173
11130105
41,981
122,019
80,032
34.4
33,312
2403
11130106
47673
122,264'
74,591
390
34373
2170
11130W
52,802
115,685
62,883
456
35,351
lH9
11130=
55361
122117
66756
453
37403
1785
. Valued usin g roafiue- year ^amour ed mndin gnerlret value
Schedule of Employer Contributions
Year Ended
November 30
Actuarial
Valuation Date
Annual Required
Contribution `
Contribution
Percentage
Contributed
2004
11/30/02
$ 5,859,287
$ 5,859,287
100
2005
11/30/03
5,534,608
5,534,608
100
2006
11/30/04
7,755,379
7,755,379
100
2007
11/30/05
6,455,607
6,455,607
100
2008
11/30/06
6,218,636
6,218,639
100
2009
11/30/07
6,197,363
5,682,256
92"
` The required contribution is expressed to the City as a percentage of payroll
" The fiscal year ended November 30, 2009 was the first year of implementation of GASB
No. 45. As such, it was the first year the annual required contribution was calculated using the
GASB No.45 required 30-yearamortiatim. Previously, the City used 40 or 50 years.
63
City of Livonia, Michigan
Required Supplemental Information
Retiree Health and Disability Benefits Plan
Actuarial Assumptions
(000s omitted)
The information presented on the previous page was determined as part of the actuarial valuations
at the dates indicated. Additional information as of November 30, 2008, the latest actuarial
valuation, follows:
Amortization method
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment ate of return
Projected annual premium increases
64
Level percent, open
30 years
Five-year smoothed market
8.25%
6% for this year, 5.5% for next year,
and 4.75% thereafter
City of Livonia, Michigan
Notes to Required Supplemental Information
November 30, 2009
Note 1 - Reconciliation of Budgeted Amounts to Basic Financial Statements
The budgetary comparison schedules for the General and Major Special Revenue Funds are
presented on the same basis of accounting used in preparing the adopted budget. The
following is a reconciliation of the budgetary comparison schedule to the governmental
funds (statement of revenues, expenditures, and changes in fund balances):
Amounts per operating statement $ 49,570,306 $ 48,954,369 $ 6,005,637
Operating transfers budgeted as
revenue and expenditures 490,000 1,042,315 2,319,151
Amounts per budget statement $ 50,060,306 $ 49,996,684 $ 8,324,788
Note 2 - Budgetary Information
Budgetary Information - Annual budgets are adopted on a basis consistent with
accounting principles generally accepted in the United States of America for the General
Fund and all Special Revenue Funds except that operating transfers and debt proceeds have
been included in the "revenue" and "expenditures" categories, rather than as 'other
financing sources (uses)." All annual appropriations lapse at fiscal year end; encumbrances
are not included as expenditures. During the year, the budget was amended in a legally
permissible manner.
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
1. On or before September 15, the mayor submits to the City Council a proposed
operating budget for the fiscal year commencing the following December 1. The
operating budget includes proposed expenditures and the means of financing them
2. Public hearings are conducted to obtain citizen comments.
3. As provided for by the City Charter, not later than November 1, the City Council shall
adopt the budget through the passage of a budget resolution and transmit the budget to
the mayor. Not later than November 15, the mayor shall either approve or disapprove
the adopted budget, in whole or in part.
65
Community
General Fund
Recreation
Total Total
Total
Revenue Expenditures
Expenditures
Amounts per operating statement $ 49,570,306 $ 48,954,369 $ 6,005,637
Operating transfers budgeted as
revenue and expenditures 490,000 1,042,315 2,319,151
Amounts per budget statement $ 50,060,306 $ 49,996,684 $ 8,324,788
Note 2 - Budgetary Information
Budgetary Information - Annual budgets are adopted on a basis consistent with
accounting principles generally accepted in the United States of America for the General
Fund and all Special Revenue Funds except that operating transfers and debt proceeds have
been included in the "revenue" and "expenditures" categories, rather than as 'other
financing sources (uses)." All annual appropriations lapse at fiscal year end; encumbrances
are not included as expenditures. During the year, the budget was amended in a legally
permissible manner.
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
1. On or before September 15, the mayor submits to the City Council a proposed
operating budget for the fiscal year commencing the following December 1. The
operating budget includes proposed expenditures and the means of financing them
2. Public hearings are conducted to obtain citizen comments.
3. As provided for by the City Charter, not later than November 1, the City Council shall
adopt the budget through the passage of a budget resolution and transmit the budget to
the mayor. Not later than November 15, the mayor shall either approve or disapprove
the adopted budget, in whole or in part.
65
City of Livonia, Michigan
Notes to Required Supplemental Information
November 30, 2009
Note 2 - Budgetary Information (Continued)
4. The legislative budget is adopted at a functional level for the General Fund and at the
fund level for other governmental and proprietary funds. The budget document
presents information by fund, function, department, and line items. Management may
amend the budget at the detail level within the legislative summary constraints.
Appropriations that exceed the summary budget constraints require City Council
approval.
Excess of Expenditures Over Appropriations in Budgeted Funds - The City did not
have significant expenditure budget variances.
0
Other Supplemental Information
67
City of Livonia, Michigan
Spada Revenue Find
68
MD street
Myon Streets
Local Streets
Gats
ligfiting
Qua Television
lili
Assess
Gsfi andinvest5mnts
8 I.01
8
[55.709
8 22.250
8 41 1
8
1293,702 8
1,560,800
Rec Ivabas.
Tares
i6,T12
Specal assessment;
-
-
-
-
-
-
Other
6,99E
-
0,515
-
-
-
Duefrwnothergovemmentaluiits
tdDOm
246345
601
-
-
-
Inventwy,lxeteiderpenss,addother
274,249
Tablasets
S 1,702,81
S
702,050
S 9116,033
$ 47,E54
$
1,2A3,702 S
1585,660
Debilities and Fund Balarca (Oeficii
Liabilities
Hccouls pumbe
$ 250,452
$
24,142
$ 601
$ -
$
],955 $
li
ncaued and other habpoes
-
-
15,326
-
7,960
li
Deferred revenue
301
14,699
Total tables
uo452
24,142
922973
-
15,915
270199
Fund Balances IBeficii
Reserved Nr aI*taLamanaements
-
-
-
-
-
-
Unreserved,undesigmted
1,452019
6 ,908
(16,910)
411
1271
1,315,461
Total Nntl balances(dfiat)
1452419
(iR 908
Fi
411
1271
1,315461
Total hablities and Nntl
balanced (deficit)
$ 170281
S
702,050
S 906,033
$ 47E5N
$
12,702 S
158560
68
Other Supplemental Information
Combining Balance Sheet
Nonmajor Governmental Funds
November 30, 2009
Tramii and MuniaMl Buildng
PUNC Sa%y A4u ated Communl R®datl Captal 205 WA 2007 MBA Mhwiiyand
Cwnmmiaion FO11eRules Tramii sckwAks Impwemmnt ReNndng ReNndiing Other
8 3,086,'88 8 1.5b.Yd 8 152286 8 2,995,09E 8 52 8 - 8 - 8
- - - 20,06] 2,069 - -
211,860 - - - - - -
- - 175,661 - - - -
$ 3,698058 $ 1,:50,060 $ 327,953 $ 3,819,161 $ ],]23 $ $ $
8 2,118 8
83.357 8
10,059 8
615,907-
9,886
5559
21,93
2,160
2,118
83,357
10,059
606926
],]23
3,696300
1511,107
317,890
2,3]2235
3,696300
1511107
317,890
2,3]2235
$ 3,698058 $ 1,:50,060 $ 327,953 $ 3,819,161 $ ],]23 $ $ $
69
City of Livonia, Michigan
70
Caonal Protects Fund:
Cd(Course
Drainage Protects
Cal*tal
Cal*tal
Swal
Court euiang
Construction
lmora+eaem
lmora+eaem Asesaents
lmora+eaeas
Assets
Cash adinvestments
$ 104,215
$ 380,M9
$ 2225,073 $
Fd2730
8 1,9,17N2
ReswHes
Taxes
aPe easessments
-
-
-
520,99,
-
Other
Due aomadergawmnentamms
-
-
-
-
-
Imentwy, tested extenses, and other
Taal assets
S t3a.215
$ 380.0679
S 222.073 S
1,10,721
S 1547.042
Liabilities and Fund Balsams (Dace)
HabiliUs
Accounts terede
$ -
$ 8582
$ 8,495 $
6,IP
$ 12890
ncauedandaherhadmies
-
-
-
-
-
Derarredrevenue
473,20
Total liaellies
-
8582
8,495
679,32➢
12890
Funs Balances (Der n)
Reserved or mptallmteaeements
-
-
-
-
-
Unrservedundeagnated
1311,215
371,487
2216578
681,601
193,152
Taal and talances(ceficit)
134.215
371,487
2216578
681601
193152
Taal Iiadlitis and Nnd
roan aes(tlzem)
S 13215
$ 380.00
S 22Z.073 S
4763,721
$ lyn o@
70
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
November 30, 2009
Cap1ai argee: Fu�
Taal Nwn jar
Cannaae
�wrnmenui
Co trxtbn
Fm�
s 2,9as,M
s 20,W,n4
x3308
go,991
223,369
614256
210209
S 2,9x8,098
$ 23,603,9x7
8 1,321,970
8 3,W,94x
116201
8169]0
1,321,970
0,Vlj1
1570,124
i 4ro,124
17,9 CR
1570124
19,462822
S 2,948,098
$ 23,603,9x7
City of Livonia, Michigan
72
Stever Revenue Funds
Special
Oaae
WjmStreets
load streets
cranes
Assessments
Teledsion
riway
Revenue
Propenythxes
s -
s -
s -
s -
s - s
4,010,aa1
Specialaesessmeas
-
9(1
-
Intergovernmental revenue
State andlorel
4,244,490
1616no
50,1id
-
-
-
Federal
-
-
1,087,994
-
-
-
ClersesMservic¢
1%,489
Interest
41,245
3270
586
-
21989
30,109
Finn and MkAures
-
-
-
-
-
87$95
Miscellaneous revenue
118
714,772
Total revenue
4,285]15
1614,040
1;138841
909,252
]36,]61
4,326,334
Expenditures
Puticsaky
-
-
436(792
-
-
-
Put icwwks
x706,653
2,319M
-
9iv['ffi0
-
-
Reaeationandcu8ure
-
-
4,458
-
5]5,]19
4610,053
Communiy and ecmwnic dnrelopnent
-
-
532517
-
-
-
CaptalouRay
-
-
-
-
-
-
oea- Principal retirement
-
-
-
-
-
-
oea-Intermtandaeer
Total espendthres
2,705,653
2,319M
673061'
9iv['850
5]5,]19
4610,053
Excess of Revenue Over(Under)
Expenditures
1559,032
(705,512)
165324
(45598)
161,042
(283,719)
OIM1er Flnarcing Sources (Ilses)
Proceeds nom Issue of long-term deal
-
-
-
-
-
-
Thaddeus in
-
2,423,000
-
-
-
450,000
3ransfars out
(x621000)
agz3000)
(40000)
Total other financing sources(useg
(x623000)
500,000
(40000)
00000
Net change in Fund Balance.
(1o43,9t8)
(205512)
16s,n4
(45riB)
121,042
166281
FundBalances(Belwil) Beenringofyear
x496,37
883E50
Fri
93,252
111
1149,180
FmMBalances(Belwil) Endofyear
$ 1(74,419
$ 6)],908
$ (16948)
$ 47,654
$ 1,W7,]8] $
1}15461
72
Other Supplemental Information
Combining Statement of Revenue, Expenditures,
and Changes in Fund Balances (Deficit)
Nonmajor Governmental Funds
Year Ended November 30, 2009
Stacal Revenue Fund oe516eMce Funds
Transit and Municipal Building
Pudi<Skiy PQudated cwnminty Road antl Captal Z05MBA M7 MBH HulhwAyand
communaiim Fow(eiWles Transit Sidewalks Imawemenl Refindm ReNndm Other
(45000
(sr'D
1633,67
6,47,810 8
26]6,12]
(45000
(sr'D
1,033,64
-
-
K1,91
-
-
-
-
-
-
646,FA6
-
-
-
-
-
-
489,983
-
81907
69268
36,98
%'Z51
]865]
296,225
572
1 613
5,825
159231
7811613
191832
6,483096
26]6,12]
]8,]33
1,885516
6,381232
-
-
1,055773
-
-
-
-
-
-
-
-
-
-
110,000
120,000
M,000
161,951
1292275
606,923
]8,]33
1,08551(i
1,055,773
6,381232
251,951
1012275
1129,923
480098
(33,10)
(461,331)
(1,89],]36)
20]6,12]
(251,951)
(1012275)
(1;121,923)
(45000
(sr'D
1633,67
2,123,000
- 251,951 1012275 1129,923
910]6127)
(45000
(sr'D
1,033,64
2,123,000
(20]612]( 251,951 1612275 1129,923
30098
3,658!2
(31
1,863,210
1®753
148'%1
225
2,146971
$ 3,696,340
$ 1511,107 $
317,894
$ 2372D5
5 5 $ $
73
City of Livonia, Michigan
74
Carta Projects Funds
orange
Cefcomse
Projects
Capel
Centel
specie
Cour Bunning
Comvucton
Impro+emem
Impro+ement
Impro+emente
Revenue
Propenytaan-
specialasessmems
-
-
-
193,399
Intergovernmental revenue
State andloml
-
-
-
-
-
Federal
-
-
-
-
-
ClargesforseMces
-
205571
-
-
-
inherent
2,439
6,800
70491
30,033
35,503
Finn audfcefimules
-
-
-
-
595,227
Miscellaneous revenue
15,303
57,250
Total revenue
2,439
211
35,491
236233
630,730
Expenditures
Pudicsakly
-
-
-
-
353,0.6
Pudi<wwb
-
-
-
-
-
ReaeationandcuAure
-
-
-
-
-
Communlyand economic Rvelopnem
Capta outlay
-
209,049
Uri
241,099
-
oed- Principal retirement
-
-
-
-
-
oed-mterestandotder
Total erpentlWres
209,049
Uri
241,099
353,0.6
Frans of Revenue O er(dnler)
Expenditures
2,439
3,322
(230i2e3)
45,123
276,934
Other Financing Sources (Li
Proceeds from !nue of long-term Rd
-
-
-
-
-
Trauskrsh
-
-
I,F53,533
-
-
Traustere oul
(133 7!3)
Total other financing sources (uses)
19x9533
(1337!3)
Net Change in Fund Baances
2,43)
3,
(1,132706)
45,124
10.3,161
FUNBalances(I)i- Beginningofyear
M131,726
369.165
3,349,233
639.273
1,793991
FUNBalances(oefiicil) Endofyear
$ 134,215
$ 371,43)
$ 2216578 $
684p01
$ "34,152
74
Other Supplemental Information
Combining Statement of Revenue, Expenditures,
and Changes in Fund Balances (Deficit) (Continued)
Nonmajor Governmental Funds
Year Ended November 30, 2009
Carnal argees Fun
Cannase Taal Nwn pr
Cotrxtbn Gwrnmenui Fums
s - s 10,8w,3a2
11%151
5,93],594
9w %
9r �0
22,369
0.56152
-
10,492366
MM'
]93 %L5
22,309
22701 T39
6,]816]6
8,735,813
1238 317
1510,124
6,265,W3
5 2517
S 1,90,124 $
3,33697
955 WD
170509
20%,658
6952,185 N,1Td,M
(6,929876) (110.%,496)
8500,000
8,500,%0
-
10,492366
(1cn W0)
8500,000
11296466
1510,124
(1ag00)
19,102352
S 1,90,124 $
19562,822
75
City of Livonia, Michigan
76
Trott Fundi
Pension andOtherEmp'gree Benefit
Plans
Fgenc Funtl
Investment
Emliryeet
Amiiastratem
Retirement System
v BA
Tmd
Fund
Assets
Cash antlash call
8 812,XF 8
212,199 8
I.024,4E6
8 965.093
Investments:
IIS. government securities
P,2d6,651
6,255936
23,5110367
Common stock
83,17I,732
P,5]SSM
105,Fu0596
-
Corpsrmebal
01,919,201
11,310,703
53,259,960
Foreign bonds
2,5s8,827
]2669]
3,327520
Mutual funds
22,9]6,962
16,16,1109
39,M2,191
-
RealesUieinvestment trust
8,909,318
-
8,969,318
-
Semriiieslendngshdi-iermcdlateral
bank investment p».'
3,13(b,860
-
3,30,1 E60
Accountsrecehede
236,119
-
236,179
-
DueTommhergovemaemalLnd
66y'9
-
66y'9
-
DueTommengfind
]26,462
]26,462
Tota' aceta
186,891 16
53,2]8,950
200176 ne6
S 985,093
Lia lilian
Accounts parade
35,1,157
1160500
1536697
8 161
Accrued and other fialvfines
-
-
-
66,766
Due to othergoemnentil condi
-
-
-
-
DuemwstLnd;
-
-
-
]26,462
Amounts die to broker under securities
lending agreement
3,9 ,996
-
3,9 ,SY96
-
Total realities
0,35,1,153
1'180,X0
5,536693
S 985,093
Nei -Reserved
Emporees Retirement System
18ii'W'ID
-
181
Emporees postempbral hea6hma and
disaaoty beneOs
-
52.034,418
52,034p18
Total net aceta
$ 182.5,13.123 $
s.04,410 $
230.637.533
76
Other Supplemental Information
Combining Statement of Net Assets
Fiduciary Funds
Year Ended November 30, 2009
r9enq Fuld
H¢iwial
SWiA Trust LitraryTrust Cmmwim MCmrrww Cmmsswan UntlsViWledTaa
Fina Fina Fina Funs mina Furst Fina Taal
$ 17U,4'J $ 15$63 $ 6 321(3 $ 183,89 $ Z7% $ 8,6n,900 $ 12,M.869
$ 1,781AM $ 15563 $ 663,306 $ 183,699 $ 2,758 $ 8,6HI W $ 12,232,8119
8 - 8 - 8 - 8 1¢3,89 8 - 8 - 8 D15Fi3
1,188 15553 663}w - 278 - 2,5 ,M
- - - - - 8,5/],900 8,6!],900
M b2
$ 1,781AM $ 15551 $ 663,306 $ 183,699 $ 2758 $ 8,6HI W $ 12232809
T7
City of Livonia, Michigan
Other Supplemental Information
Combining Statement of Changes in Net Assets
Fiduciary Funds
Year Ended November 30, 2009
Additions
Imesfrnentinxnme:
InterestanddiH@iWs
Net change in fair value of investments
Less invesfnent expenses
Netimesfrnentireame
Secunfes lemming inxnme:
Interestanalkes
Borrower rebates and bank fees
Total secunfes lending inxnme
C ntnbutions:
Emplo}er
EmploWe
Total contnbufans
Total addfons - Net
Deductions
Pension bereft payments
Medical bereft payments
Administrative expenses
Refunds ofcontnbutions
Total deductions
Net Increase
Net Assets Held in Trustfor Pension and Other
5nploWar Benefits
Beginning of year
End! of }ear
IN
Empkryee5
Retirement
System WBA Total
$ 6,925,424 $
1,669,053 $
8,594,471
33,162541
9,519,183
43,281]24
(405513)
(86,152)
(492325)
454 921
-
454 921
40,282392
11,101484
51383816
83 832
-
83 832
24 558
24 558
1118360
-
1118360
-
5,6[32,256
5,682,256
540,733
869,621
1,430,360
540,733
6,511883
1,112,616
40,931,515
11,6]336]
58,604862
12,136,691
25,219
12,161 916
-
6,621,655
6,621,655
116,834
16,186
193,622
454 921
-
454 921
i Rxia.311 141W: WAS 1.11]
28,163,051 11,003,645 39,166,102
154,38066
41,09 165
195,41 831
$ 182,50.1,123
$ 52,094,410
$
234,63],54]