HomeMy WebLinkAbout2011 Annual Financial ReportCity of Livonia, Michigan
Financial Report
with Supplemental Information
November 30, 2011
City of Livonia, Michigan
Contents
Report Letter
1-2
Management's Discussion and Analysis 3-9
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets
10
Statement of Activities
11-12
Fund Financial Statements:
20
Governmental Funds:
21-22
Balance Sheet
13-14
Reconciliation of the Balance Sheet to the Statement of Net Assets
15
Statement of Revenue, Expenditures, and Changes in Fund Balances
16-17
Reconciliation of the Statement of Revenue, Expenditures,
24
and Changes in Fund Balances of Governmental Funds
to the Statement of Activities
18
Proprietary Funds:
Statement of Net Assets
19
Statement of Revenue, Expenses, and Changes in Net Assets
20
Statement of Cash Flows
21-22
Fiduciary Funds:
Statement of Fiduciary Net Assets
23
Statement of Changes in Fiduciary Net Assets - Pension and Other
Employee Benefits Trust Funds
24
Component Units:
Statement of Net Assets
25
Statement of Activities
26-27
Notes to Financial Statements
28-57
City of Livonia, Michigan
Contents (Continued)
Required Supplemental Information
58
Budgetary Comparison Schedule - General Fund
59-61
Budgetary Comparison Schedule - Community Recreation
62
Budgetary Comparison Schedule - Refuse Disposal System
63
Budgetary Comparison Schedule - Public Safety Communication
64
Pension System - Schedule of Funding Progress
65
Retiree Health and Disability Benefits Plan - Schedule of Funding Progress
66
Note to Required Supplemental Information
67-68
Other Supplemental Information
69
Nonmaicr Governmental Funds:
Combining Balance Sheet
70.72
Combining Statement of Revenue, Expenditures, and Changes in Fund
Balances (Deficit)
73-75
Fiduciary Funds:
Combining Statement of Net Assets
76-77
Combining Statement of Changes in Fiduciary Net Assets
78
Independent Auditor's 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, 2011, 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 Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are time 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 fairly, 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, 2011 and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended, in
conformitywith 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 a required part 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.
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 May 24,
2012 on our consideration of the City of Livonia, Michigan's internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements. 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.
During the year, the City implemented GASB Statement No. 54, Fund Balance Reporting and
Governmental Fund Type Definitions, as discussed in Note 1. As a result of this required
implementation, fund balance classifications in the governmental fund financial statements have
been changed to reflect the five new classifications under GASB 54.
May 24, 2012
City of Livonia, Michigan
Management's Discussion and Analysis
Overview of the Financial Statements
The City of Livonia, Michigan's (the "City") 2011 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 cortpanies. The statement of net
assets includes all of the City's assets and liabilities. All of the current yeaf's revenue 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 Citys assets and liabilities, are one way to measure the
City's financial health or position.
The government -wide financial statements of the City are divided into three categories:
• Government Activities - Most of the City's basic services are included here, such as the
police, fire, public works, parks departments, and general administration. Property taxes,
state -shared revenue, and charges for services provide most of the funding for these
activities.
• 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.
• 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:
• Governmental Funds - Most of the City's basic services are included in governmental
funds, which focus on how cash and otherfinancial assets thatcan be converted to cash, flow
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
programs.
• 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.
• 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, 2011 to the prior year.
Net Assets (in millions of dollars)
Summary Condensed Statement of Net
Assets
Governmental
Business -type
Total
2011
2010
2011
2010
2011
2010
Assets
Current and other assets
$ 47.9
$ 50.8
$ 29.6
$ 29.5
$ 77.5 $
80.3
Capital assets
184.4
181.7
76.5
78.3
260.9
260.0
Total assets
232.3
232.5
106.1
107.8
338.4
340.3
Liabilities
Current liabilities
7.1
5.8
3.2
3.1
10.3
8.9
Long-term liabilities
53.6
54.5
10.1
11.8
63.7
66.3
Total liabilities
60.7
60.3
13.3
14.9
74.0
75.2
Net Assets
Invested in capital assets
Net of related debt
143.5
139.2
66.9
67.3
210.4
206.5
Restricted
20.3
21.6
2.5
2.5
22.8
24.1
Unrestricted
7.8
11.4
23.4
23.1
31.2
34.5
Total net assets
$ 171.6
$ 172.2
$ 92.8
$ 92.9
$ 264.4 $
265.1
City of Livonia - Net Assets
The City's assets exceed its liabilities at the end of the fiscal year by $264.4 million (net assets).
However, a major portion (80 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.
Unrestricted net assets of the City's governmental activities decreased from $11.4 million at
November 30, 2010 to $7.8 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 City as awhole, 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
Governmental
Activities
Business -type Activities
Total
2011
2010
2011
2010
2011
2010
Revenue
Program revenue:
Charges for services
$ 16.7 $
15.3
$ 31.6
$ 28.2
$ 48.3 $
43.5
Operating grants and
contributions
9.0
8.4
-
-
9.0
8.4
Capital grants and
contributions
1.3
2.2
0.2
0.70
1.5
2.9
General revenue:
Property taxes
49.6
55.6
-
-
49.6
55.6
State -shared revenue
7.6
7.5
-
-
7.6
7.5
Rental income and fees
2.3
2.2
-
-
2.3
2.2
Interest
0.4
0.4
0.1
0.1
0.5
0.5
Transfer and miscellaneous
0.4
0.30
0.4
0.3
Total revenue
87.3
91.9
31.9
29.0
119.2
120.9
Program Expenses
General government
10.5
10.3
-
-
10.5
10.3
Public safety
37.4
37.1
-
-
37.4
37.1
Public works
23.9
25.4
-
-
23.9
25.4
Community and economic
development
1.6
1.5
-
-
1.6
1.5
Recreation and culture
13.0
14.3
-
-
13.0
14.3
Interest on long-term debt
1.5
1.6
-
-
1.5
1.6
Water and sewer
-
-
29.2
27.1
29.2
27.1
Golf course
-
-
1.9
1.8
1.9
1.8
Housing
0.9
1.0
0.9
1.0
Total expenses
87.9
90.2
32.0
29.9
119.9
120.1
Change in Net Assets
(0.6)
1.7
(0.1)
(0.9)
(0.7)
0.8
Net Assets -Beginning of year
1722
170.5
92.9
93.8
265.1
264.3
Net Assets - End of year
$ 171.6 $
1722
$ 92.8
$ 92.9
$ 264A $
265.1
6
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
Governmental Activities
In reviewing the above table, it can be noted that revenue decreased by $4.6 million and
expenses decreased by $2.3 million. The reduction in revenues was caused by reduced
property tax revenues as a result of continued dedines in property values. The significant
factors impacting expenses were reductions to wage and benefit costs as a result of reduced
staffing.
Business -type Activities
The City has three business -type activities. These include the water and sewer system, the
operating fund for the Fox Creek, Idyl Wyld, and Whispering Willows golf courses, and non-
federal senior housing at Silver Village and Newburgh Village.
The following table shows the operating (loss) income before contributions, transfers, and
interest for each of these activities in the current and prior year:
Ins thoauads m dollars)
Water and Sewer Golf Courses Noising
2011 2010 2011 2010 2011 2010
Operating Revenue $ 28,631 $ 25,199 $ 1,583 $ 1,637 $ 1,341 $ 1,333
Operating Expenses2( 8,648)2( 6,725) (1.873) (1,838) (891) (908)
Operating (Loss) Income $ (21 7) L11,526) $ (290) $ (201) $ 450 $ 425
Capital Assets and Debt Distribution
At the end of fiscal year 2011, the City has $438.3 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 $40.9 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 $7.7 million and debt related to the housirg
and activities of $1.8 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 senior housing rental facilities.
Significant additions to capital assets during fiscal year 2011 include $8.3 million invested in the
construction of infrastructure and improvements to roads, $950,000 invested in parking lots, and
$850,000 invested in equipment and vehicles. Significant disposals of capital assets during fiscal
year 2011 included the disposal of library books and other vehicles and equipment with a total
cost of $1.0 million.
City of Livonia, Michigan
Management's Discussion and Analysis (Continued)
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 City's major governmental funds for 2011 include the General
Fund, Community Recreation Fund, Refuse Disposal Fund, Grants Fund, and Public Safety
Communication Fund.
The City's governmental funds reported a combined fund balance of $27.5 million. This is a
decrease of approximately $4.3 million for the year. The decrease was caused primarily by the
use of fund balance to pay for refuse operations and to purchase new 911 dispatch radio
equipment. The Gants Fund ended the year with a deficit fund balance of approximately
$125,000. This was caused by a delay in receipt of reimbursement of federal funds for the
Neighborhood Stabilization Program grant. The funds have subsequently been received which
will eliminate this deficit for 2012.
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 revenue and
expenditures as the original adopted budget.
Actual General Fund revenue was approximately $68,000 below the final budget. Shortfalls
were experienced as a result of tax appeals ($703,000) and interest income as a result of low
interest rates ($151,000). These shortfalls were partially offset by better than anticipated
revenues for charges for services ($157,000), rents and royalties ($227,000) and miscellaneous
income ($378,000).
Actual General Fund expenditures were approximately $216,000 below the final budget. Nearly
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
arise when considering the revenue 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 73 percent of the City's total
governmental activities revenue. In August 2011, voters approved millage increases of 1.7 mils
for public safety and 0.25 mills for senior and cultural services. These millages will help maintain
these activities at current levels, but continued declines in property values will erode the impact
of these new millages. 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 ate 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 ofthe 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
The Notes to Financial Statements are an
Integral Part of this Statement. 10
Statement of Net Assets
November
30, 2011
Porous Goonerninnent
Governirental
businesstype
Component
Activities
Activities
Total
Unit
Assets
Cash sodden eWtialent(Note 3)
$ 35,333345
$ 12,475510 $
47,808,855
$ 3,053,181
Account recar%able:
Taxes
25,030
-
25,030
-
Customs
-
12515,306
12515,306
-
Worlaer5mmryensation
56,035
-
56,035
-
Due board other governirentalunits
5,243,300
-
5,243,300
-
VEDA
1,239,094
-
1,239894
-
OMeramountreceivable
3,032,167
751850
3,784,017
15,557
Special deessrmnt
456 ,619
-
456 ,619
129,124
Internal balances
11835
(11035)
-
Inventory, prepaid expenditures, and deposits
2,355039
1250,T/5
3,606814
-
Restricted asset (Note 7)
-
2,614213
2,614213
-
Capital asset (Note 4):
Nondepreciable capital asset
38,009,413
6,116288
44,125,101
474448
Depreciable natant asset - Net
146431,800
70,333,619
216,765,419
7,241893
Total asset
232368,8T`
106016526
338,415403
10,914,809
Liatilities
Account payable
4,310,112
544893
4,855805
45,379
Due to other governnental units
-
2,131528
2,131528
-
AccruedliabilRiesandother
2,161145
117,386
2284531
2,626204
DeEreed revenue (Note 13)
688014
187,166
815,180
-
Bonds and deposits
-
191fi82
191fi82
-
Noncurrent Iiatildies (Note 6)
Due within one year
3,921846
2,103890
6,025,136
430800
Due in round than one year:
Compensated absences and insurance claim
8,233521
116,305
8,349826
-
LmdGlltlosureliabilTy
541836
-
517,836
-
NetOPEBobligation
1562,T/2
68,118
1631490
Bonds and capital leases payable
39,285,000
18113,355
47,080,355
3,080800
Total liabilities
69,716246
13,90,923
73,961169
6,181583
Net Assets
Invested in capital asset- Net of related debt
143,511213
fi6,8884fi8
210,459,fi81
4,25,341
Restricted for:
Cormi recreation
3,311219
-
3,311219
-
MuncipalreNse
4,810,T/6
-
4,810,776
-
Streef,roads,andsidewalla
2633,693
-
2,633,693
-
Library
16211136
-
1,071136
-
Publcsafetycommunication
2,239,866
-
2,239,866
-
Grant
818242
-
818242
Street lighting
53539
-
53,539
-
&1jud ted forte Rures
880616
-
800,616
-
Cormitransit
:91168
:91]68
-
Ordnancerepsirement
111983
2,497297
2,609280
-
Capdalimprovements
3,680,995
-
3,680,995
-
Unrestricted
7,817,585
2{,389838
31,27,423
526885
Totalnetoset
$171,652,631
$ 92,]]5,603 $20,428,234
$ 4,133,220
The Notes to Financial Statements are an
Integral Part of this Statement. 10
City of Livonia, Michigan
Functias4Progrzms
Pnmarygmernment
Governmental actiHties:
General government
Public safety
Publicwor
Community and economic
development
Recreation and culture
Interest on Imgturm debt
Totalgovernmentsl
actlNtles
Buawsslype activities:
wateraidsewer
Golf course
Housing
Program Revenue
Operating Capital Grants
Charges for Grants and and
Expanses Sertices Contributions Contributions
$ 18,479,483
$ 3,37],365 $
- $
502,978
37,397,754
6,592,373
1991,190
601,211
23,938,932
2,27],125
5,942,793
234,443
1608,507
193,832
803,978
-
13,001950
4,273,494
253,013
-
1558,070
-
-
-
87,984,606
16,714,179
8,990,974
1338,624
29,255,M 28,631,459 - 190,510
1873,491 1583,995 - -
969,305 1341,475
Total buawsslype
acbmtes
32,098,815 31,555,030 - 100,510
Totalpnmarygovernment
$120,083,511 $ 48,270,109 $ 8,990,974 $ 1,529,134
Componentunits
$ 1,216,355 $ - $ 123,559 $ -
General revenue:
Property taxes
Stateshared!revenue
InvesBment income
Unrestricted tees and other
Miscellaneous
Total general revenue
Transfers
Change in Net Assets
Net Assets- Beginning of }ear
Net Assets- End of year
The Notes to Financial Statements are an
Integral Part of this Statement. 11
Statement of Activities
Year Ended November 30, 2011
Net(Expense) Rewnm an Changes in Net Assets
Pnmary Govemment
Gowmmentel Busimss{ Compmenl
AdivIns AdivIns Total Unb
$ (6,599,156) $ - $ (6,599,156) $
(28,212,969) - (28,212,969)
(15,484,571) - (15,484,571)
(610,W)
- (610,W) -
(8,175,443)
- (8,175,443) -
(1s56,070)
- (1s56,070) -
(60,940,919) - (60,940,919)
(433,969) (433,969) -
(290,486) (290,486) -
372,0s0 372,0s0
- - (1 DW,796)
49,604,241
-
(352,375)
(352,375) -
7,606,919
-
7,606,919
-
(66,946,919)
122,441
(352,375)
(61,293,294) -
- - (1 DW,796)
49,604,241
-
49,604,241
61496
7,606,919
-
7,606,919
-
386, 303
122,441
510,744
1,M
2,317,152
-
2,317,152
-
5]6,835
576,835
1,731
60,4%,45D
122, 441
6 0, 61 ], 891
65,013
(146,000)
146,000
-
-
(591,469)
(W,934)
(675,403)
(1027,7W)
172,244,100
92,,859,W
265,163,637
5,761,999
$171,652,631 $
92,]]5,603
$264,428,234 $
4,7M,226
12
City of Livonia, Michigan
The Notes to Financial Statements are an
Integral Part of this Statement. 13
Akjw Special Revenue Find
commmiry
Rothe oiap®I
Puna Sarery
Genera Fund
Recreation
aystem
Grants
communieation
Assts
Cash anainv¢Ments
a
3,184]20
a 4.125,132
a 6,655586 a
48.69
a 3,112263
Re babes
Tares
106,172
13,721
41,710
-
Stall assessurneents
-
-
-
-
worlelr<ompaneamn
W035
-
-
-
Duercomdhersoernmentawmte
2,95a72
-
-
1901265
-
WBA
I,29p36
-
Other
1,01808!
1M,483
632]8
-
212,138
Due gain other l,nd
1228,157
-
-
-
-
Inventory, around expenses, and deposits
216,063
429,489
Total assets
S
9p16,617
S 6294,336
S 6$811,6.36 S
213N,463
S 31384,401
Cubilnies and Fund Baal
Dealings
Accountsleyabe
8
®9.155
8 151582
8 1038955 8
333,466
8 1146535
Due to other Nnd
1159,064
-
accrued and other labh8s
1599.123
63521
131
18,651
Deterred revenue (IN de 13)
817,089
ri1093
42,487
912,796
W276
Total ladlitis
3,141
1,0E6,196
12&1509
2,503,997
1ag0811
Fund Retail
Bompandal Invedoryana prelaa
assets
2]6,062
-
-
-
-
Restricted
Streets, roach, aiasidwale;
AudryaWeabr(eeures
-
-
-
-
Grants
-
-
-
429,489
-
Caldalimaoements
-
-
-
Community recreation
-
3228,166
-
-
Munapallrefise
-
-
5,316,125
-
street lighting
Puli<swi
kly<n nialon
2,093590
con
cwn
-
-
-
-
-
projects Drainage
Cigned -�be a<estelersbn
-
-
-
-
-
s igned
aRDAdN
sn,800
-
-
-
-
capdal
-
-
-
-
-
Courtholeeaptallov3rnenle
Csigned ngi�3ovemenis
-
-
-
Dmsi9netl
5,615,366
-
-
(564,C63)
Total Lna ndlm<s
6,2&9250
3,228,160
5,316,125
(126551)
2,033590
Total lablitisand
Nntlbllaoces
$
9p14,617
S 6294,336
S 6580,634 S
213N,4433,384,401
S 3,384,4
The Notes to Financial Statements are an
Integral Part of this Statement. 13
Nw�jw
Fw� 3wa
$ 10.¢455 $ n,550a74
3a,
MD,030
456,619
456,619
1,52
%'M
i 036,143
5,M3 00
M,M
w,19s
1,e jn
63539
1 M157
7,125 Mei
$ 12,316,954 $ Me 7O,M5
s M2,419 s
4,n0,112
58,036
1,27,122
1,52
2,MD,4M
g ,760
3,n 501
3,M,140
3226 o
7,125
M207
2,sn2n
2,sn2n
WD,616
BBoc16
9,069
32y6.000
3,M,140
3226 o
s,n6,lzs
63539
63539
i rbfiyso
i
m
M3590
563 ,so1
563,so1
01
iiiMA1
MiiiA1
TJ6261
TJ6261
sn,600
M,970
M,970
936 cs3
936 cs3
4,6613zs
10,M3c95
n,4 246
$ 12,316,954 $
3s,370,365
14
Governmental Funds
Balance Sheet
November 30, 2011
City of Livonia, Michigan
Governmental Funds
Reconciliation of the Balance Sheet to the Statement of Net Assets
November 30, 2011
Total Fund Balances of Governmental Funds $ 27,486,246
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
184,441,213
Certain receivables are expected to be collected over several
years, including special assessments, delinquent personal
property taxes, and grants
2,648,487
A portion of fines and fees is not available to pay for current
year expenditures
1,348,591
The liability for compensated absences is recorded when
incurred in the statement of activities
(7,011,238)
Landfill closure and postclosure liability is not due and payable
in the current period and is not reported in the funds
(547,836)
Long-term liabilities are not due and payable in the current
period and are not reported in the funds
(40,870,000)
Net OPEB obligation is not due and payable in the current
period and is not reported in the funds
(1,562,772)
Accrued interest is not due and payable in the current period
and is not reported in the funds
(146,741)
The Internal Service Fund (self-insurance) is included as part of
governmental activities 5,866,681
Net Assets of Governmental Activities $ 171,652,631
The Notes to Financial Statements are an
Integral Part of this Statement. 15
City of Livonia, Michigan
Revenue
Property taxes
Losses and normal
Federal revenue
slide andlneal revenue
Charges brserv<es
Finesand Mkitures
Interest
Other revenue:
Special asesmenk
Other mselaneom Income
Total revenue
Expenditures
Current
General government
Put i<skry
PUNK works
Com miryande<as m<
development
Founded and<ulWre
Empgee reasons, Insurance, and
other
Capital outlay
ten sem<e
revenue Funds
6,534,190
3 561526
2,61057
534561
1 ahl
2,449, 68
6,930,168
488, 31
111 3,677,079
11954216
1,013 46
Total vpenmures
Corral
rebse Oisp®I
11954216
Fund Sarery
Genera Fund
recreation
system
Grants
Communication
Expenditures
(515241)
2,301]
s 26,796,106 s
3.3+1522
s 10,103,354 s
-
s -
M1818545
-
-
-
175,110
-
-
1,811
-
7,5805
(293237)
(2,586652)
48,181
4,088418
3785468
222,sh-r
-
a17,s3z
3,65],012
F'rao,9rs)
Feminineness Beenningai
6,119,180
3,633259
earth
24,360
41,404
52
22,038
2,831,016
81,011
11
2,013,598
M1211
46,3415,189
7,232.281
10,385,103
1861299
1®1081
6,534,190
3 561526
2,61057
534561
1 ahl
2,449, 68
6,930,168
488, 31
111 3,677,079
11954216
1,013 46
Total vpenmures
dr'%0,a30
4,930,148
11954216
2,422210
3,4n,079
Excess of Revenue (under) Over
Expenditures
(515241)
2,301]
(1,568573)
(550511)
(1,ra5538)
Other Financing sources (Ihes)
Transkrs In IN de S)
assms
-
-
-
Transkrsmt(NdeS)
(293237)
(2,586652)
Net CMnge in Fund natures s
158,070
(295,119)
(1,568573)
(50571)
F'rao,9rs)
Feminineness Beenningai
6,119,180
3,633259
6,re4696
636017
3,81
numerousness Endoi
$ 6269258 $
3228,A8 $
5}16125 $
(124,554) 5
2,013,598
The Notes to Financial Statements are an
Integral Part of this Statement. 16
Governmental Funds
Statement of Revenue, Expenditures, and Changes in Fund Balances
Year Ended November 30, 2011
Other Non jor
3o1a
Goemmeoloi
Go%ernmeoui
Foocs
Furch
s 9,MD580 s
19,m,162
983,416
188,515
2b1,696
2 255,952
6,195}5/
13,621612
213,912
9.058569
1331581
66,963
313,573
1,195)28
1,5/1228
983,416
1,®1882
19,659]]1
8],185,321
9MUM
W,752
%'tm, s0
10,w6910
2s, n3]53
30D]}35
1, ss0]
5,2u35o
11133,426
(287,751) (1,b7,001)
1,656,6n
2,M9,866
1Sm,175
1Sm,175
30D]}35
30D]}35
21,46]j22
91,6R,T25
(287,751) (1,b7,001)
1,656,6n
5,&19225
(3,155336)
(51E5225)
(322,410)
(1,D3,001)
11026.105
n,M217
$ 10,7 0,05 $
NAM,266
17
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, 2011
Net Change in Fund Balances - Total Governmental Funds $
(4,293,061)
Amounts reported for governmental activities in the statement
630,277
of activities are different because:
Governmental funds report capital outlays as expenditures;
(28,968)
however, in the statement of activities, these costs are
allocated over their estimated useful lives as depreciation:
(553,986)
Capital outlay
10,657,187
Depreciation expense
(7,784,812)
Loss on disposal of fixed assets
(183,111)
Certain revenue reported in the statement of activities is
recorded in the governmental funds as deferred revenue
(21,405)
Repayment of bond principal is an expenditure in the
governmental funds, but not in the statement of activities
(where it reduces long-term debt)
1,673,638
Interest expense is recorded when incurred in the statement of
activities
5,624
Net decrease in accumulated employee sick and vacation pay is
recorded when incurred in the statement of activities
630,277
Increase in landfill liability is recorded when incurred in the
statement of activities
(28,968)
Increase in net OPEB obligation is recorded when incurred in
the statement of activities
(553,986)
Internal service funds are included as part of governmental
activities
(692,912)
Change in Net Assets of Governmental Activities $
(591,469)
The Notes to Financial Statements are an
Integral Part of this Statement. 18
City of Livonia, Michigan
Proprietary Funds
Statement of Net Assets
November 30, 2011
Nommjor
X4jor Enteryise Fund
Enterturse Fund
Taal Enterase
Internal Series
Water anaSewer
Homi
Goffcowse
Fund
Fund
Assets
Current assets:
Case and handmade s
11,919$76 s
`05695
s -
s 12'G5518
s 7,712011
nccncnte re<e;aatee:
Customers
Y2,515,396
-
Y2,515,396
-
Omer
747200
-
4,650
F1sso
-
Inventory, aepa;ae.penawree'
anadpma9a
125mn5
-
-
125mn5
163142
Total current assets
26,463,157
85634
4,00
26,993a41
9,4 ,813
Noncurrent assets:
restricted mob IN de 7)
2,6113
-
-
2,6113
-
rental assets (Note 4):
Nondlxeciade capital assets
951852
1;81,948
3,532088
6,116268
-
Oeyeciadeapitalasets-Net
O'aar696
3,852,112
1,314809
M,M619
Tota nomurrent
assets
63.612,763
5,434,060
4,5]29]
7I.,oM,120
Total assets
5,359zo
5,596M
4,961947
106,37w1
9,4 ,813
HaNetlea
Current 0awl0ea:
Hccounts aerates
496,748
36,436
9,70
514893
-
Duetodhergoarnmentalunits
2,121528
-
2,121528
-
Duemdeernnd
11,035
11,035
-
Ac<meaanadeerlatelmea
100,115
11
2595
111
-
Deterred revenue Mdo13)
16],166
-
16],166
-
sondanadpoa6s
s5562
32,120
-
197,682
-
Compemateaamences-Due
within we year
M35M
20,161
5225
2asmo
-
Current porton of lom term
oN;gauons
20,000
a3s,000
-
a5,000
-
Tdal<urrentoammes
32111.623
610393
265M
3613580
-
Noncurrentladl;t;s:
horns tom restrmteaarsete
1420,000
-
-
1420,000
-
Cmmpemateaaaences-Due
we than we year
1299
97,M8
17,958
111
-
Not COED oteigatim
0,718
-
-
0,718
-
Lmg4erm dN- Net of<urrent
portion (Note 6)
6isir;D 5
1315,000
-
7,313155
3,59,132
Tota nomurrent
routines
],9583]2
1432,0`18
17,958
9,406,3]8
3,59,132
Total ladl;t;s
11162995
2,MMl
46522
13,261958
3,59,132
Net lists
Invested In capita assets- Net of
related dN
53,261,111
3,634,060
485]29]
assn 46s
-
R¢Vsted Ordinance
re4irenents
2,49]29]
2,49]29]
Unrestricted
23,22517
223,193
(41872)
D'datem6
5,EFb661
Total net assets $
8i $
3,88]253
$ 4915p25
$ 92,115,603
$ 5,866,661
The Notes to Financial Statements
are an
Integral Part of this Statement.
19
City of Livonia, Michigan
Proprietary Funds
Statement of Revenue, Expenses, and Changes in Net Assets
Year Ended November 30, 2011
The Notes to Financial Statements are an
Integral Part of this Statement. 20
Nmmai
Enterabe
X4jw Enteryise Fund
Fund
Tdd
waterand
Enteriame
Internal Service
Sewer
Hmsng
Galfccurse
Fund
Fund
OperAing fdruere
Customer dlings
$ 26,831585 a
-
a -
a 26,831585
a -
FinesandMkitures
1,708023
-
-
1,708023
-
Sefvice<mnectims
16,828
-
16,828
Groom gas
-
-
1,3186!3
1,3186!3
-
GdfartGas
-
-
M520
M520
City<mViMom
-
hs'hga 5
Rental Income
131s,3o5
4,000
1312,305
Other revenue
42,694
3,170
105,s36
151702
Total areal regime
ro3.s3145o
1311,475
1,53.005
31, 5 ,930
5,16455
Operating Expenm
Cost chanter
6,98],]53
-
-
6,98],]53
-
Cost ofsewage dsp®I
11432X18
-
-
11432X18
-
Systemmnntena<eandcreaton
4616}13
-
-
4616j13
-
Generalandadnmavaove
115o,63B
-
-
115o,63B
Reinsurance charges and done
-
5,920,490
Salarmandwages
-
430544
141
578,426
-
supties
-
9,413
V5$01
M5214
-
Other sen7<esandchages
m2,92o
1376,134
1651
-
Deaeciatim
2,710,647
w8585
w,674
3,032?86
Total operating expenses
m.ra8,159
891462
1873,491
31613,112
15,920p90
Operaung(have) l income
(216,709)
450,013
(298,485)
(57,182)
(1751935)
Norogerating Revenue (Expenses)
Investment Income
118,003
4436
-
tt2,441
43,023
Interest expense
(407,]]8)
(/7,933)
(485,703)
TmI roroferating(wromes)
revenue
(299.]67)
(73,495)
(363262)
43023
(Los)Incanee- BefwecmViWtimsandtranskrs
(506,476)
W6518
(290,485)
(420444)
(692,912)
retail Contributions than Developers and
Game
190510
-
-
190510
-
Tranaarainnict )
-
-
all
all
-
ChangeinNetlssets
(315,9'
W6518
(144,485)
(83934)
(692,912)
NeUtssets- Beginningofyear
S1,m6,891
3,510735
5,39911
92,851
6,59593
Netltssets-Endofyear
$Wi9n,925 $
Ra8),253
$ 41915,425
592,]]5,603
$ 5,866,661
The Notes to Financial Statements are an
Integral Part of this Statement. 20
City of Livonia, Michigan
Proprietary Funds
Statement of Cash Flows
Year Ended November 30, 2011
The Notes to Financial Statements are an
Integral Part of this Statement. 21
Nomi
affair Enteryise Fund Entertains Fund
]mal
Enternme Internal
Senecas
Water andSpor
Housing
Carcass
Fund
Fund
C6M1 Rwvs frau Operating rlctirilig
Receipts man customers
8
28,659,593 8
1}11,075 8
1580.78 8
31581,80 8
10,]90.025
Payments to suppliers
(23,315,539)
(312639)
(1591,668)
(25$19,7.16)
(15,386,597)
Payments to empopes
(0,128,339)
(688,699)
r4rama7)
(0,610,821
Offer recants
11
1,390
16,53
Net cash Ixwidtl ty (used In)
operating a<tivitia
12.38,739
629,756
(155,837)
1]83,]8
(596,172)
Cush Flowers from Nonsagtal Financing
Activities-Nettramkrs Vanmher
fund
-
-
iffow
iffow
-
Cash Ross from Captal and dealer!
Financing Activities
ContriWtims Van<ustaners
28,318
-
-
28,318
-
Netruchasaofaptalasets
(11032663)
-
-
(11032663)
-
PrincralatllnteptleitlmImg-term
did!
(1]130,81
(50,11,349)
(22136,211)
Net cash cedin center am
rehtedfimn<ing vaiMis
(2,735,215)
(50,11,349)
-
(3289,561)
-
Cash Rwvs from handling Activities
Interest received on investments
118,,003
4,,1,10
-
122,149
Chad
Not eatmem
cgl„sap,rdaaa)mfim
31221
(35057)
10,827
28 1
11
Net cash frovided by (used in)
investing activities
0.D.2418
(30.617)
10.81
618,660
1923]3
Net (Uttreme) Ircrease in Cash am
Cush ramparts
(1;126,1
mrso
-
(1029,396)
(483,739)
CushandCushramparts-
refusing of par
12,161,952
Mash
-
12,750.932
6,oa5,om
Cmh and E9uirakn[s -
nd ofear
$
11,33],]66 $
30.3,]]0 $
$
"'Mi5m $
5681,2
Balance SM1cet Classification of Cam am
Cash ramparts
Cash andinvstmems
a
119,19,8766 a
525631 a
- a
12075,510 a
7,711
Restreteduessek(Note 1
2614,21
-
2614,212
Lessinvestments
(3226,321)
(141861)
(3369,187)
(2,101,261)
Taal cash atlaah eryclenk
$
11,310f66 $
38310 $
- $
11,11536 $
5601,2
The Notes to Financial Statements are an
Integral Part of this Statement. 21
City of Livonia, Michigan
The Notes to Financial Statements are an
Integral Part of this Statement. 22
Proprietary Funds (Continued)
Statement of Cash Flows
Year Ended November 30, 2011
Nonrrejor
X4jor Entertains Fund Enterturse Fund
Total Enterase Internal Serves
Water antlSewer
Housing Goffcourse Fund Fund
Rttorciliation of Operating(Loss)
Income to Net Gah from Operating
Activities;
Operating(Iow)Inanne
$ (216,7ad$
Q50013 $ (2964%)$ tartan a (]35,935)
Pijustments to reconcile operatng
(ow) incoarre to net was horn
operating actiMies
Deyeciation
2,710,W
166,5ffi 153670 3,832906 -
Chang¢InasetsanchadRies:
Reconvenes
(1p16,7ad
- (2246) (1,018,957) ]5],iW
Inventory, prepaid, and
deposits
(374,11
(374,11
Piefwidand otnerasets
v sv
Accounts terms
132854
7,e17 (19,70) 126193
Due to others
(1p51,2Bo)
Accrued and other taboo¢
36,495
2751 1,935 41,17
Deterred revenue
(41,616)
- (41,6166 -
BondanddeposAs
1,393 1,393
Net was Ixwided by
(used
in)operating
actinw
$ 1,238,]a9 $
(i $ (156,83]) $ 1JOi $ (596,17)
During the year ended November 30, 2011, the
City received $162$00 in rtnated water and sewer lines reported as capital assets In the
Water antlSewer Fund
The Notes to Financial Statements are an
Integral Part of this Statement. 22
City of Livonia, Michigan
Fiduciary Funds
Statement of Fiduciary Net Assets
November 30, 2011
The Notes to Financial Statements are an
Integral Part of this Statement. 23
Pension and
Other
Employee
Benefits
Agency Funds
Assets
Cash and cash equivalents (Note 3)
$ 1,036,547
$ 10,638,331
Investments (Note 3):
U.S. government securities
26,486,003
-
Collateralized mor[gate obligations
14,706,757
-
Commonstock
99,018,700
-
Common bonds
38,124,878
-
Realestateinvestmenttrust
10,231,940
-
Foreign bonds
5,015,192
-
Mutual funds
51,017,326
-
Securitieslendingcollateralpool- Mutual funds
1,919,469
-
Accounts receivable
381,146
-
Due from agency funds
796,279
Total assets
248,734,237
$10,638,331
Liabilities
Accounts payable
702,464
$ 165,353
Due to other governmental units
-
6,842,041
Due to primary government
1,239,094
-
Duetootherfuntls
-
796,279
Accrued and other liabilities
-
2,834,658
Amounts due to broker under securities lending agreement
2,112,887
Total liabilities
4,054,445
$10,638,331
Net Assets Held in Trust for Pension and Other Employee
Benefits
$244,679,792
The Notes to Financial Statements are an
Integral Part of this Statement. 23
City of Livonia, Michigan
Fiduciary Funds
Statement of Changes in Fiduciary Net Assets - Pension and Other
Employee Benefits Trust Funds
Year Ended November 30, 2011
The Notes to Financial Statements are an
Integral Part of this Statement. 24
Pension and
Other
Employee
Benefits
Additions
Investment income:
Interest and dividends
$ 6,728,409
Net charge in fair value of investments
7,172,012
Less investment expenses
(599,095)
Net investment income
13,301,326
Contributions:
Employer
6,105,569
Employee
1,157,794
Total contributions
7,263,363
Total additions
20,564,689
Deductions
Pension benefit payments
13,809,230
Medical benefit payments
7,044,256
Refunds of contributions
861,181
Administrative expenses
261,393
Total deductions
21,976,060
Net Decrease in Net Assets Held in Trust
(1,411,371)
Net Assets Held in Trust for Pension and Other Employee Benefits -
Beginning of year
246,091,163
Net Assets Held in Trust for Pension and Other Employee Benefits -
End of year
$ 244,679,792
The Notes to Financial Statements are an
Integral Part of this Statement. 24
City of Livonia, Michigan
Component Units
Statement of Net Assets
November 30, 2011
Assets
Cash and cash equivalents
Accounts receivable
Capital assets (Note 4):
Nontlepreciable capital assets
Depreciable capital assets- N at
Total assets
Liabilities
Accounts payable
Accrued and other liabilities
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
Net Assets
Invested in capital assets- Net of related debt
Unrestricted
Total net assets
Economic Plymouth Road
Development Development
Corporation Authority Total
$ 23,460 $ 3,029,727 $ 3,053,187
- 145,281 145,281
- 474,448 474,448
_ 7,241,893 7,241,893
23,460 10,891,349 10,914,809
45,379 45,379
2,626,204 2,626,204
- 430,000 430,000
3,080,000 3,080,000
- 6,181,563 6,181,583
- 4,206,341 4,206,341
23,460 503,425 526,885
$ 23,460 $ 4,709,766 $ 4,733,226
The Notes to Financial Statements are an
Integral Part of this Statement. 25
City of Livonia, Michigan
Function Programs
Eoononrc Development
General
n-
General government
Plymouth Road Development AuNonty
Community and econonrc
development
Interest on longterm @bt
Total Plymouth Road
Devebpment Authonty
Totalgovemmental
acbmtes
Program Revenue
Operating Capital Grants
Charges for Grants and and
Expenses Seraws Contnbuhnns Contnbuhnns
1053,122 - 123,559 -
163 233
1216,355 - 123,559 -
$ 1,216,366 $ $ 123,669 $
General revenue:
Taxes
Interest
Miscellaneous
Total general revenue
Charge in Net Assets
Net Assets- Beginning o1 }ear
Net Assets- End of year
The Notes to Financial Statements are an
Integral Part of this Statement. 26
Net (Expense) Rewnm and Changes in Net Assets
Emmmic Plymo Road
DewlWment DewlWment
Co rahm Mftro Total
(929,563) (929,563)
(163,233) (163,233)
(1 DW,796) (1 DW,796)
(1 DW,796) (1 DW,796)
-
61 ass
61 ass
119
1,767
1,M
1,731
1,731
119
64,894
66,013
119
(1027,902)
(1027,783)
23,341 5,737,666 5,761,009
$ 23,460 $ 4,709,766 $ 4,733,226
27
Component Units
Statement of Activities
Year Ended November 30, 2011
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and 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 governmental units. The following is a summary of the significant
accounting policies used by the City of Livonia, Michigan:
Reporting Entity
The City of Livonia, Michigan is governed by an elected seven -member council. The
Citys 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 Citys 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 for description).
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 nonmijor 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.
28
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and Significant Accounting Policies
(Continued)
The Brownfield Redevelopment Authority was created, pursuant to Public Act 381 of
1996, to promote revitalization of environmentally distressed areas within the 36 -square
mile boundary ofthe 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 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.
The City has excluded the 16th District Court from this report based on a legal opinion
stating that the Court is a part of the Michigan statewide court system, not the City of
Livonia, even though the City has the responsibility to provide financing for the Court's
operations. The Court has a separately issued audited financial statement which can be
obtained from the 16th District Court at 32765 Five Mile Road, Livonia, MI 48154.
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 nonfduciary 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 revenue, 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 revenue. Direct expenses are those that are dearly identifiable with a
specific function or segment. Program revenue includes (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.
29
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and 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 of the timing
of related cash flans. Property taxes are recognized as revenue in the year for which
they are levied. Grants 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 revenue to be
available if it is 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 for these, 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 daims andjudgments 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.
Community Recreation Fund - The Community Recreation Fund amounts 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.
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.
Grants Fund - The Grants Fund accounts for the grant activities ofthe City. Funding is
provided primarily through federal, state, and local grant funding.
30
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and Significant Accounting Policies
(Continued)
Public Safety and Communication Fund - The Public Safety and Communication
Fund accounts for the operations of the 911 dispatch activities of the City. Funding is
provided primarily through 911 user fees.
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 user charges.
Housing Fund - The Housing Fund accounts for the Newburgh and Silver Village
residential rental facilities. Funding is provided primarily through user charges.
Additionally, the City reports the following internal service and fiduciary activities:
Internal Service Fund - The Internal Service Fund is used to fund general, workers'
compensation, and enployee healthcare liability claims and to purchase insurance that
provides excess general liability coverage for City employees and property. The fund is
financed primarily by charges to the various departments of the City.
Pension and Other Employee Benefits Trust Fund - The Pension and Other
Employee Benefits Trust Fund accounts for the activities of employee beneFd plans that
accumulate resources for pension and other postemployment beneFd 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 Citys financial statements. These systems are
governed by a five-merrber 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 tofollow private sector standards
issued after November 30, 1989 for its business -type activities.
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and Significant Accounting Policies
(Continued)
As a general rule, the effect of interfund 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.
Eliminations of these charges would distort the direct costs and program revenue
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, including 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 or fund balances are available, the City's policy is to first apply
restricted resources, except for the Community Recreation Fund and Capital
Improvement Fund which apply unrestricted fund balance first When an expense is
incurred for purposes for which amounts in any of the unrestricted fund balance
classifications could be used, it is the City's policy to spend funds in this order:
committed, assigned, and unassigned. This is true for all funds except the Community
Recreation Fund and Capital Improvement Fund. As noted above, the policy for these
funds is to use unrestricted funds first; therefore, the order of spending is: unassigned,
restricted, committed, and assigned.
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 depredation on capital assets. All revenue and
expenses not meeting this definition are reported as nonoperating revenue and
expenses.
32
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and Significant Accounting Policies
(Continued)
Prooertv 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
2010 taxable valuation of the City totaled $4.393 billion (a portion of which is abated and
captured by the PRDA). The millages levied by the City and the resulting revenue are as
follows:
Approximate
Millage Revenue
Purpose of Millage Rate in millions
Operating purposes 4.0447 $ 17.83
Police and fire 0.8088 3.57
Police and fire and snow 1.2134 5.35
Library 0.8088 3.44
Refuse and recycling 2.3746 10.10
Industrial development 0.0114 0.05
Roads, sidewalks, and trees 0.8893 3.78
Recreation 0.7855 3.34
Transit and capital improvement 0.5000 2.13
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 2011. Wayne County delinquent real property taxes have been
recorded as revenue in the current year.
33
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and Significant Accounting Policies
(Continued)
Assets, Liabilities, and Net Assets or Equity
Bank Deposits and Investments - Cash and cash equivalents include cash on hand,
demand deposits, and short-term 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.
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. In inventory where real estate is included, the inventory is valued
at the lower of cost or market.
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.
Capital Assets - Capital assets, which include 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 vehicles 2 to 20 years
Water and sewer distribution systems 50 years
34
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and 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 March 2009, the GASB issued Statement No. 54, Fund Balance
Reporting and Governmental Fund -type Definifions. 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 clarifying 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 on the use of the resources
reported in governmental funds. Under this standard, the fund balance classifications of
reserved, designated, and unreserved/undesignated were replaced with five new
classifications - nonspendable, restricted, committed, assigned, and unassigned. The City
implemented Statement No. 54 during the year, resulting in the reclassification of fund
balance; however, no fund types were required to be reclassified.
35
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 1 -Nature of Business and Significant Accounting Policies
(Continued)
In the fund financial statements, governmental funds report the follming components of
fund balance:
• Nonspendable: Amounts that are not in spendable form or are legally or contactually
required to be maintained intact.
• Restricted: Amounts that are legally restricted by outside parties, constitutional
provisions, or enabling legislation for use for a specific purpose.
• Committed: Amounts that have been formally set aside by the City Council for use
for specific purposes. Commitments are made and can be rescinded only via
resolution of the City Council.
• Assigned: Intent to spend resources on specific purposes expressed by the City
Council orthe finance director, who is authorized by resolution approved by the City
Council to make assignments.
• Unassigned: Amounts that do not fall into any other category above. This is the
residual classification for amounts in the General Fund and represents fund balance
that has not been assigned to other funds and has not been restricted, committed, or
assigned to specific purposes in the General Fund. In other governmental funds, only
negative unassigned amounts are reported, if any, and represent expenditures
incurred for specific purposes exceeding the amounts previously restricted,
committed, or assigned to those purposes.
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.
36
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
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
sincedanuary 1, 2000 is as follows:
Cumulative shortfall at December 1, 2010 $ (1,448,313)
Current year building permit revenue 1,630,857
Related expenses:
Direct costs $ 1,373,196
Estimated indirect costs 430,813 1,804,009
Current year net expenses (173,152)
Cumulative shortfall at November 30, 2011 $ (1,621,465)
Fund Deficits - The Golf Course Fund had a deficit of $41,872 in unrestricted net
assets and the Gant Fund had a deficit of $124,554 in unassigned fund balance at
November 30, 2011. The Golf Course Fund deficit will be eliminated by cost
management over several years and the Gant Fund deficit will be eliminated as grant
receipts are collected.
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 Michigan. 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 vehicles that
are legal for direct investment by local units of government in Michigan.
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 contracts, 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.
37
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 3 - Deposits and Investments (Continued)
The City has designated four 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 Citys
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, 2011, only
United States currency was received as collateral. The City then converts that cash
received as collateral into other investments.
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,
2011 was one day 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, 2011, the System had no credit risk exposure to borrowers. The
collateral held (cost bass) and the fair market value of the underlying securities on loan
forthe System as of November 30, 2011 was $2,112,888 and $2,135,340, respectively.
M
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
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 $32,240,468 of bankdeposits (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 nsk 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 Citys 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:
Primary Government Fair value 0 t 5 years 6m 10years over toyears
US agencysecurgies $ 24293338 $ 20,M.M8 $ - $ -
USTreasurysecurtes 998438 996,638
Taal $ 25291786 $ zs,2917136 $ $
City of Le onia FmpHees Retirement
System Fair value oln5years 6m 10 years over 10 years
Corp ate W cs
$
28.8 693 $
30651,890 $
11293639
$ 7,129,181
Foregn finds
3,]62]11
2367.896
7M,750
676.065
O S. agencysecurAies
16,003,540
62,645
1654876
12286.021
OS Treasurysecurtes
3,]282]3
-
2,M0,310
1.687963
Colateralbedmortgage odigatms
10754935
716,300
10040.631
Total
$
61122150 $
1282c.131 5
16,639853
$ 31819,81
City of Lhonia Retiree Heal@ and Disability
BenefitsMan
Fair Value
0to5years
6 t 10 years
over 10 years
core ate Wnds
8
9252,187 8
3,614,194 $
6100311
$ 1,537,682
Foregn Wnds
1252081
795,155
232276
225,o50
OS. agencysecurties
6,926850
17,162
555,112
6,155,513
OS. Treasurysecurites
3,825}!0
1283,861
1166.701
1,389,78
Collateralbedmortgage odigatms
3,951,822
371084
358036
Total
$
23210660 $
5,695'm 5
6026,884
$ 11088626
39
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
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 limit its investment choices. As of year end, the credit quality ratings
of debt securities (other than the U.S. government) areas follows:
Investment
Primary Government
Bank investment pools
Bank investment pools
Corporate bond
Corporate bond
Corporate bond
Corporate bond
Corporate bond
Corporate bond
Corporate bond
Foreign bonds
Foreign bonds
Foreign bonds
U.S. agencies securities
U.S. agencies securities
U.S. Treasury securities
Collateralized mortgage obligations
Collateralized mortgage obligations
Collateralized mortgage obligations
Collateralized mortgage obligations
Collateralized mortgage obligations
Total
Component Units- Bank investment pools
40
Fair Value
Rating
Rating
Organization
$ 2,560,766
Aaa
Moody's
2,210,136
Al
3&P
4,101,884
Aho
3&P
3,069,441
AA
3&P
10,035,272
A
3&P
16,858,139
BBB
3&P
1,193,484
BB
3&P
498,813
B
3&P
2,367,845
NR
3&P
571,193
AA
3&P
1,917,800
A
3&P
2,526,199
BBB
3&P
25,271,524
A
3&P
17,954,213
NR
3&P
8,552,052
NR
3&P
948,863
AAA
3&P
1,172,597
AA
3&P
7,999,485
A
3&P
3,350,327
BBB
3&P
1,235,485
NR
S&P
$ 114,395,518
$ 3,029,727
Aaa
Moody's
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 4 - Capital Assets
Capital asset activity of the City's gmemmental and business -type activities and
component unit was as follows:
Net aPla' assets being heVecialed 14633982 (V8,061) (182,041) 1460.31888
Net aPta'asob 8 181]51949 8 2,8]23]5 8 (83.111) 8 184,441213
41
Balance
Balance
oece niaer 1,
Nevennber 30,
2010
Accli
osgnsaa
2011
f nmentalAcrivilia
Capital mets 1151 being ceina led
And
8 M.851019 8
8
8
M.851019
Cmstruclim in pcgres
Z 626
3,M,Q
(81,078)
3,157,93E
suddal
388.047
3,M,Q
(81070)
33,W9013
Capital mi Wing Rpecialed
Inhslruclure
92,611;166
5,M3,556
-
97,71,1,73E
R®tlrights
ff'P;af£
ao95E
B,fl])28
Buildings ana
1N,869247
1M,7]
(7,355)
13,89663E
E4iprenlandvahl
31,aesmi
Ri
(916933)
31,535,826
suddal
245,(03222
],651,]51
(34}59)
253,33614
Accumilaled Rpecialim:
Inhslruclure
3],4]8,691
2,]4],694
-
48,218,33
R®tlri9hts
6,M,ln
531946
7,389,124
tailings ana
M'tni'792
2,241263
(123)
3],252932
EWiprenlandvahl
211,]15,659
2,3il989
(32,195)
22121373
suaaal
93.9+9J2o
7,764$12
(32,318)
106,901$14
Net aPla' assets being heVecialed 14633982 (V8,061) (182,041) 1460.31888
Net aPta'asob 8 181]51949 8 2,8]23]5 8 (83.111) 8 184,441213
41
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 4 - Capital Assets (Continued)
42
dance
Ealanae
December 1,
area er 30,
2010 Reclasilatims Aditima
Del
2011
Bn.1raes:typenctMme
Carl assets not bens
depeciated
Land 8
5,164436 8
8
8 -
8 5.115 1.436
Comtructim in progress
2,369591
(2,1925 I,al
951,852
suWdal
],534,02]
(2,41925 I,WijiB
-
6,116288
Captal assets ming tlepeciated
Water and sewer d5tribution
122,030248
2,419257 Iasi
-
124,612,850
Buldrgs and buildiirg
imymemei
9,mxl
- -
(760%)
9,321,832
2,211008
- -
-
2,211008
Versesryantle4ipnenl
1,911rai
rai
1,911
Landau
Land impwerren[s
2,916,044
2,916,044
suddal
133,321570
2,419257 Iasi
(76099)
140,857,613
Mcurrulated Rpeciatim:
Water and sewer detriWtim
5],9H868
- 2,M2,762
-
W,3n 650
euldrgs and W6dm
imyovemei
4,M,000
- nal
(65660)
4,3!9245
Machinery and eryipnent
it5,s28
- n1955
-
1,]61,]83
Vehicles
1,31135]
- 138205
-
itjre
Land imaoverrenis
2,43],]45
97,059
2,531804
suaaal
6].94808
3,032906
(65 F5o)
711,'254,054
Net aptal assets being detreciated
711.761.762
2,419257 (2,819551)
Nata )
]I1,3U619
Net agtal assets 8
Beal 8
- 8 (1818.043)
8 Nata )
8 3,49907
Balance
Balance
December 1,
Notsainta
0,
Component Units- Development Alifil
2010 A6BRions
2011
Capital assets not being depurated -LaM
$ 474,448 $
- $
474,448
Capital assets being @preciatetl-
Lam
improvements
15,]03,22]
-
15,]03,22]
A rnullclapreciation -Lamimprovements
7,676,173
7&5,161
8,461334
Net capital assets being deprerAafetl
8,027,054
(85,161)
7,241893
Net capital assets
$ 8,501502 $
(85,161) $
],]16,341
42
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 4 - Capital Assets (Continued)
Depreciation expense was charged to programs ofthe primarygovernment as follows:
Governmental activities:
General government
$ 670,326
Public safety
1,199,123
Public works
3,926,615
Recreation and culture
1,988,748
Total governmental activities
$ 7,784,812
Business -type activities
Water and sewer $ 2,710,647
Golf course 153,674
Newburgh and Silver Village 168,585
Total business-typeactimbes $ 3,032,966
Construction Commitments - The City has active construction projects at year end.
At year end, the City's commitments with contractors are as follows:
Street and sidewalk projects
Remaining
Spentto Date Commitment
$ 8,660,960 $ 1,486,495
Note 5 - Interfund Receivables, Payables, and Transfers
Receivable Fund Payable Fund Amount
Due to/from Other Funds
General Fund Grants Fund $ 1,159,084
Golf Course Fund 11,035
Nonmajorgovernmental funds 58,038
Total General Fund 1,228,157
VERA Fund Investment Administration Agency
Fund 737,072
Total $ 1,965,229
These balances result from the time lag between the dates that goods and services are
provided or reinbursable expenditures occur, transactions are recorded in the
accounting system, and payments between funds are made.
43
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 5 - Interfund Receivables, Payables, and Transfers (Continued)
Interfund transfers reported in
the fund financial statements
are comprised of the
following:
Transfer Out
Transfer In
Amount
General Fund
Nonmijorgovemmental funds
$ 147,237 `
Golf Course Fund
146,066 `
Community Recreation Fund
Nonmijorgovemmental funds
2,506,652 "
Nonmajorgovemmental funds
General Fund
958,548
Nonmajorgovemmental funds
2,196,788
Total
$ 5,955,225
` Transfer of unrestricted resources to finance capital projects and general obligation
debt service in accordance with budgetary authorizations
" Transfer from the Community Recreation Fund for debt service
Transfer from Cable Television Fund to General Fund to move unrestricted fund
balance
The majority of transfers are for gas and weight tax revenue from the Major
Streets Fund to the Local Streets Fund and from these funds to the Road and
Sidewalk Fund in accordance with Act 51. Most of the remaining transfers relate
to debt service.
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 reassessment of the City) are received. Revenue bonds involve a
pledge of specific income derived from the acquired or constructed assets to pay debt
service.
44
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 6 - Long-term Debt (Continued)
Long-term debt activity can be summarized as follows
45
interest
Principal
Rate
Maturity
Beginning
Ending
Due whin
Rage=
Rage=
Balance
Acitims
Reductions
Balance
One Year
Govenmental Actiuitia
Building Authority Bonds:
2885 MBA Refunding Brendle<
Amoumi-$3,z34000
390%-
$155,000 -
Maturing through 2015
425%
MOW
$ 3.350.000 $
-
$ (245.000)$
3105,000
$ 259000
2887 MBA Refunding Bores
Amounmri„ne-$3ie25,000
400%-
$1p2o,000-
Maturing through 2838
475%
s1,705,000
3g66s000
-
(1009000)
29a65,0o0
1,120000
2888 MBA Court Cmstmction
Bond
Amountofissue-$8500,800
300%-
$215,000 -
Maturing through 2033
5S%
$580,000
3,D5,000
-
(205,000)
8,100000
215,000
Captal lease obligations:
Fire tmtl Winter
Amount ensue -$485,000
Maturing through 2D11
-
-
6],690
Transportation Wass:
Pmmntofisue-$]'6912
Maturing through 2D11-
-
`00`948
-
(155,948)
Trial goremmental
activity tlzb
425!3638
-
(1613,636)
40870000
1585,000
Other Idol obigations:
General liablily carries, wor ere
omPenstim, and real
ine(Note s
2,311,982
]5],158
-
3559,132
-
landrJl co ureandpatclmure
hadlily
Bill
28,983
547,80
-
OPEBready
1,008]E6
553,986
155 m
Conryematedah:ences
7,611515
2}40]44
(2971,021)
7,011,2@
2,336,845
Tdalintes mental
diages
$51.514,]89$3,651,800$(4615,691)$535509
$3,921,845
45
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 6 - Long-term Debt (Continued)
eomPonenr Una Actirnles
20%D=nt=n Developnent
Refundng Bmd:
wnwntofisue-U.470ODD 400%- X3o,000-
Maturing through XlB 500% $78000 $ 3928000 s - s (410000)$ 3518000 $ 638000
Interest
Pnnatal
Rate
Maturity
6etnning
Ending
Due Withn
Ramses
Raves
Balance
Hd9iom
Reductions
Balance
One Year
Businrs.ctype Activities
Buddha Mhwity Bmd:
209 WA Ref nci g Bmd:
anwmofisue-s338D000
$113553 -
Maturing through 015
600%
s ,DW
$ 2,195,000 s
-
s (m5.000)s
1,n0,000
s 135,000
Water Sutter adwastev ater
System Bmd:
2002WaterSUPpyand
Wasta-,ater system Revenue
Returning Bmd:
6mwntofisue-0300,W0
335% -
Maturing through Dl2
4W%
W30,0W
1,815,000
-
(915,000)
M0,000
M0,000
Lead dekrredamwnt m
reundng
(212,655)
-
31,010
(ffi I,w)
-
205Water SuWyand
WastevaterSystem Revenue
Bonds:
Pmountofisue-$I,SBSW0
375%-
$300,0W -
Maturing through 020
5W%
$t0g0W
3,5118000
-
(D5,000)
3,X5000
X0000
20% Water SuWyand
Wstmater System Revenue
Returning Bmd:
Pmmntofisue-M,flBWD
375%-
$1980W -
Maturing through X20
5W%
$ DW
3,895,000
(P8000)
3,M,000
190,000
Taal brinesartyge
activity debt
11262345
-
(37/3990)
9488355
1155,000
Cwntyconvatual eNigatims:
Side Revdvi% EundLwn-
N. Hurm Valley/Rwge Valley
WstmaterCmtrd System:
Pmmntofmane -
$10,0X,]I13
88000 -
Maturing through 021
2S%
55,000
210,000
-
(20000)
190,000
20,000
OtherImg4erm odigatims:
OPEB liabity
62763
25955
-
68,718
Cmryematedatsences
318192
6303
xe,195
228890
Taal brinesartyge
activates
11,35a,DDD
M2 a
(1733990)
10,092268
2,103s9D
Total governmental and
Wsinessty actirties
84+.368]89 $
3,Bb,138
8(6,EG9681)$0.W2E6
$6,025736
eomPonenr Una Actirnles
20%D=nt=n Developnent
Refundng Bmd:
wnwntofisue-U.470ODD 400%- X3o,000-
Maturing through XlB 500% $78000 $ 3928000 s - s (410000)$ 3518000 $ 638000
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 6 - Long-term Debt (Continued)
Annual debt service requirements to maturity for the above bonds and note obligations
are as follows:
X11 ms*181
Revenue Bonds - The City has pledged substantially all revenue of the Water and
Sewer Fund, net of operating expenses, to repay the above water and sewer revenue
bonds. Proceeds from the bonds provided financing for improvements to the water and
sewer system The bonds are payable solely from the net revenues of the water and
sewer system. The remaining principal and interest to be paid on the bonds total
approximately $9.4 million. During the current year, net revenue of the system was
approximately $2.6 million compared to the annual debt requirements of approximately
$1.8 million.
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 amountwas $81,422,099.
47
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 7 - Restricted Assets
The balances ofthe restricted asset accounts areas follows:
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, 2011, the City set aside $2,497,297 to comply with
these requirements.
Bond proceeds held in the amount of $116,916 in the Water and Sewer Fund relate to
excess funds from the 2005 Water Supply and Wastewater System Revenue bonds to be
used for future water and sewer obligations.
Note S - Risk Management
The City is exposed to various risks of loss related to property loss, torts, errors and
omissions, and employee injuria (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 linits, the ultimate liability for those claims remains
with the City.
m
Business -type
Activities -
Water and
Sewer Fund
Cash and cash equivalents:
Revenue bond reserves
$ 2,497,297
Bond proceeds
116,916
Total restricted assets
$ 2,614,213
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, 2011, the City set aside $2,497,297 to comply with
these requirements.
Bond proceeds held in the amount of $116,916 in the Water and Sewer Fund relate to
excess funds from the 2005 Water Supply and Wastewater System Revenue bonds to be
used for future water and sewer obligations.
Note S - Risk Management
The City is exposed to various risks of loss related to property loss, torts, errors and
omissions, and employee injuria (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 linits, the ultimate liability for those claims remains
with the City.
m
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note S - Risk Management (Continued)
The City estimates the liability for general liability, workers' compensation, and medical
claims that have been incurred through the end of the fiscal year, including daims 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 column in the statement of net assets. Changes in the
estimated liability for the past twofscal years were es follows:
GenerAhadlity Worers'Corryer®tim Medal Carrs
2011 2010 2011 2010 2011 2010
Eatinsted gawity
Beginning of par
$ 660,931
SrS.M $
1,135587 $
341,191 $
1.005j $
917,89E
Estimated claims
incurred dancing
changes in estanstes
1'a1o,855
15]509]
1b1983
rags
Y,96hr ]
13,01
Claimte}ments
(1273.372)
(1,gigsi43)
(484683)
(494Zn
(13,391
(13,005097)
EstanstedIiatity-End
ofyear
8 912914 8
660,931 8
1932927 8
1135587 8
573291 8
1005544
Note 9 - Defined Benefit Pension Plan
Plan Description - The City of Livonia Enployees' 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 employee of the
City unless they elected to transfer to the Citys 401(a) defined contribution pension
plan (see Note 10):
• General employee members - All members hired prior to March 17, 1997 and their
beneficiaries
• Police lieutenant and sergeant members - All members hired prior to December 8,
1997 and their beneficiaries
• Police officer merrioers - All members hired prior to November 24, 1998 and their
beneficiaries
• 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, 2010, the date of the most recent actuarial
valuation, membership consisted of 584 retirees and beneficiaries currently receiving
benefits and terminated employees entitled to benefits but not yet receiving them, and
192 current active employees. The System does not issue a separate financial report.
49
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 9 - Defined Benefit Pension Plan (Continued)
Contributions - Plan member contributions are recognized in the period in which the
contributions are due. 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 referto Note 1 forfurther significant accounting policies.
The obligation to contribute to and maintain the system for these employees was
established by negotiation with the Citys collective bargaining units and requires a
contribution from the employees from 2.55 percent to 6.25 percent The funding policy
provides for periodic employer contributions at actuarially determined rates.
Administrative costs of the plan are financed through investment earnings.
Annual Pension Cost - For the year ended November 30, 2011, 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, 2009 using the aggregate
cost method. Significant actuarial assumptions used include (a) an 8 percent rate of
return and (b) projected salary increases of 4 percent to 11.92 percent per year. Both
(a) and (b) include an inflation component of 4 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 as follovs:
Fiscal Year Ended November 30
2011 2010 2009
Annual pension cost (APC) $ - $ - $ -
Percentage ofAPC contributed 100.0 % 100.0 % 100.0
Net pension obligation - - -
Reserves - As of November 30, 2011, the plan's legally required reserves have been
fully funded as follows:
Legally required reserves:
Reserve for employees' contributions $ 8,379,392
Reserve for retired benefit payments 57,638,722
Additional reserves- Reserve for employer contributions 118,055,522
Total reserves $ 184,073,636
50
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
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:
• General employee members - All members hired on or after March 17, 1997
• Police lieutenant and sergeant members - All members hired on or after
December 8, 1997
• Police officer members - All members hired on or after November 24, 1998
• Firefighter members- All members hired on or after July 1, 1998
In addition, the plan covers all employees electing to transfer from the Citys 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 employeesearnings as follows:
Employees TmnstemMfmmlhe New Employees Hirad Arierthe
Detned Benefit Pension Plan ERecbv Dates Not A %
Employer Employee Employer Employee
Contribution Contnbuhnn Contnbulion Contribution
General
13%
3.1%to366%
8%
3.1%to366%
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
maximum allowed by law.
The City's contributions for each enployee (plus interest allocated to the employees
account) are fully vested after four years of service.
In accordance with the above requirements, the City contributed $2,133,521 during the
current year and employees contributed $777,609.
51
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 11 - Other Postemployment Benefits
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 "VERA"). 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, 2010, the date of
the most recent actuarial valuation, membership consisted of 569 active participants,
672 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 City's Other Employee Benefits Trust Fund.
Eligibility - Most 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. Effective December 1, 2009, certain
newly hired employees receive a health reimbursement account instead of being eligible
for the VEBA.
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 terms 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.
52
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 11 - Other Postemployment Benefits (Continued)
Funding Progress - For the year ended November 30, 2011, the City has estimated
the cost of providing retiree healthcare benefits through an actuarial valuation as of
November 30, 2009. 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 costs 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) $ 6,647,610
Interest on the prior years net OPEB obligation 84,124
Less adjustment to the annual required contribution (46,224)
Annual OPEB cost 6,685,510
Contributions to VEBA
(6,105,569)
Increase in net OPEB obligation
579,941
OPEB obligation - Beginning ofyear
1,051,549
OPEB obligation - End of year
$
1,631,490
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:
Percentage
Fiscal Year
Annual OPEB OPEB Costs
Net OPEB
Ended
Costs Contributed
Obligation
11/30/09
$ 6,197,363 92.0%$
515,107
11/30/10
6,169,497 91.3
1,051,549
11/30/11
6,685,510 91.3
1,631,490
The funding progress of the plan as of the
most recent valuation date is as follows (in
000s):
Actuarial Actuarial
UA4L as
Actuarial Value of P nod Unfunded
Fun@tl Ratio 0everetl
Percentage
Valuation Assets' Liability AAL(UML)
(Percent) Payroll
of Wretl
Date (a) (MIL) (b)
(ba) (alb) (c)
Payroll
11/30/68 $ 55,361 $ 122,117 $
66,756 453 % $ 37,483
1785%
11/30/09 57,845 137,822
79,97] 420 36,981
2163
11/30/10 660,361 153,223
92,862 394 34,062
2726
Valuetl using the tvs year"smoothecl tuning' market value
53
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 11 - Other Postemployment Benefits (Continued)
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-term perspective of the calculations.
In the November 30, 2010 actuarial valuation, the entry age actuarial cost method was
used. The actuarial assunptions included an 8 percent investment ate of return (net of
administrative expenses), which is a blended ate of the expected long-term investment
returns on plan assets and on the employers own investments calculated based on the
funded level of the plan at the valuation date, and an annual healthcare cost rate of 6
percent for fiscal year 2011, 5.5 percent for the following year, and 4.75 percent
thereafter. Both rates included a 4 percent inflation assunption. 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 t1AAL is being amortized
as a level percentage of projected payroll on an open basis, over 30 years.
54
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 12 - Pension and Other Employee Benefit Trust Funds
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.
(7,044,256)
(1,104,262)
(18,312)
Employees'
connections
Retirement
911 surcharge revenue not
System
VEBA
Grant revenue not received
Statement of Net Assets
within 60 con
1144,599
Cash and investments
$ 186,430,940 $
61,126,772
Other assets
346,102
831,323
Liabilities
2,702,506
1,351,939
Net assets
$ 184,073,636 $
60,606,156
Statement of Chances in Net Assets
Investment income
Contributions
Benefit payments
Other decreases
Change in Net Assets
Note 13 - Deferred Revenue
$ 10,018,202 $
3,283,124
489,911
6,773,452
(13,809,230)
(7,044,256)
(1,104,262)
(18,312)
$ (4,405,379) $ 2,994,008
Governmental funds report deferred revenue in connection with receivable for
revenue that is not considered to be available to liquidate liabilities of the current
period. Governmental 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:
Governmental Busiresslype
Governmental Funds MhvRies MhvRies
Unavailable Ureametl Tdal Unearned Unearned
Property tax, sl a al assessment,
axtotherrecenables $
1357,612
Canmunity recreation center
annual passes
-
Interest receivable on sewer
connections
-
911 surcharge revenue not
received within 60 days
146,276
Grant revenue not received
within 60 con
1144,599
- $ 1357,612 $ - $ -
688,014 688,014 688,014 -
- - - 187,166
- 146,276 - -
1144,599 - -
Total $ 2,648,487 $ 688,814 $ 3,336,581 $ 688,814 $ 187,166
55
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 14 - Upcoming Accounting Pronouncements
In November 2010, the GASB issued Statement No. 60, Accounting and Financial
Reporting for Service Concession Arrangements. This statement addresses financial
reporting related to service concession arrangements which are a type of publio-private
or public -public partnership. An SCA is an arrangement between a transferor (a
government) and an operator (whether a government or nongovernment) in which the
transferor conveys to an operator the right and relation obligation to provide services
through the use of infrastructure or another public asset in exchange for significant
consideration and the operator collects and is compensated by fees from third parties.
The City is currently evaluating the impact this standard will have on the financial
statements when adopted during the City's 2012-2013 fiscal year.
In November 2010, the GASB issued Statement No. 61, The Financial Reporting Entity
Omnibus. This pronouncement, which is an amendment to Statement No. 14 and
Statement No. 34, modifies certain requirements for inclusion of component units in the
financial reporting entity. This statement also amends the criteria for reporting
component units as if they were part of the primary government (that is, blending) in
certain circumstances. Lastly, the statement also darifies the reporting of equity
interests in legally separate organizations. The City is currently evaluating the impact
this standard will have on the financial statements when adopted during the Citys 2012-
2013 fiscal year.
In December 2010, the GASB issued Statement No. 62, Codification of Accounting and
Financial Reporting Guidance Contained in Pre -November 30, 1989 FASB and AICPA
Pronouncements. This statement incorporates into GASB literature certain accounting
and financial reporting guidance issued on or before November 30, 1989 that is included
in FASB statements and interpretations, APB opinions, and accounting research bulletins
ofthe AICPA Committee on Accounting Procedure. The City is currently evaluating the
impact this standard will have on the financial statements when adopted during the
City's 2012-2013 fiscal year.
In June 2011, the GASB issued Statement No. 63, Financial Reporting of Deferred Outflows
of Resources, Deferred Inflows of Resources, and Net Position. The statement will be
effective for the Citys 2012-2013 fiscal year. The statement incorporates deferred
outflms of resources and deferred inflows of resources, as defined by GASB Concepts
Statement No. 4, into the definitions of the required components of the residual
measure of net position, formerly net assets. This statement also provides a new
statement of net position format to report all assets, deferred outflows of resources,
liabilities, deferred inflms of resources, and net position. Once implemented, this
statement will impact the format and reporting of the balance sheet at the government -
wide level and also at the fund level.
56
City of Livonia, Michigan
Notes to Financial Statements
November 30, 2011
Note 15 - Contingent Liabilities
Sanitation System Overflow- In the spring of 2011, the City experienced a 100 -year
rain event. In connection with this event, certain properties in Livonia experienced
flooding and approximately 1,000 residents fled claims against the City for flood
damage. The City has been served with a class action lawsuit forthose claims. The City
believes it has governmental immunity from such claims as there was no sewer system
defect that would eliminate this immunity. As such, no estimated liability has been
recorded related to this event.
57
Required Supplemental Information
58
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule - General Fund
Year Ended November 30, 2011
Expenditures
General Government
vanance with
Legislative:
Original Budget
Final Budget
Actual
Final Budget
Revenue
$ 342,534 $
321,911 $
321,011 $
6,900
Property Taxes
$ 27,500,131
$ 27,500,131
$ 26,]96,]06
$ (783,425)
licenses and Permits
332,908
250,108
258636
12
Business
138,888
138,000
140,952
2,952
Nonbusiness
1,570,400
1510,400
1,13R,593
107,193
Tdal licenses and permits
1108,400
1108,400
1818,545
110,145
Intergovernmental Revenue
State and local
1,566,165
1,566,165
1,580, 554
13,189
Federal
150,898
150,898
115,110
24,812
Tdal intergovernmental revenue
1,111,663
1,111,663
1,156,264
38,601
Charges for Services
3844,149
3,844,149
4,000,810
156,121
Interest
320,060
320,060
168,116
(151284)
Fines and Forfeitures
3549,000
3,549,000
3,467,012
(81968)
Miscellaneous Revenue
Rent and royalties
1,744,M2
1144,692
1912,015
221,323
Sala of fixed assets
90,000
90,000
48,610
(41390)
OBiermiscalaneous
1891,264
1891,264
2,214,999
31],135
Total miseslanwus revenue
3,131956
3,131956
4,295,624
563,668
Total revenue
$ 48,371,289
$ 48,371,299
$ 48,103,]3]
$ (67,662)
Expenditures
General Government
Legislative:
Cry Counal
$ 342,534 $
321,911 $
321,011 $
6,900
Cry aerk
504,305
518,922
518,024
898
Elections
332,908
250,108
258636
12
Tdal lagislaeve
1179,141
1097,541
1689,6A
7,818
Judicial
3,841868
3,1195,868
3,895,139
121
Euxaive- Mayors office
398,531
405,031
405,019
18
Human resources:
Human Relations Commission
2,341
2,341
W
1670
Labor relations
106,888
106,888
66,241
39,153
Civil served
635,666
592,666
592,414
192
Tdal human resources 144,013 701,013 659,398 41,615
59
City of Livonia, Michigan
861,088
833,288
833,216
72
Firefghting
Required
Supplemental Information
Budgetary Comparison
Schedule
- General
Fund (Continued)
418,778
Year Ended
November 30, 2011
Total fire
11 311428
11418,628
11,418,4W
Variance with
Prolective inspection:
Original Butlget
Final Budget
Actual
Final Butlget
aperditures (Continued)
1,580
1,580
316
1,272
General Government (Continued)
1,259,314
1259,314
1241,671
17,643
Financial administration:
1260,894
1260,894
1,241,979
18,915
Accounting
$ 231413
$ 207,721
$ 197,692
$ 10,029
Assessing
471,469
471,469
458,184
13,285
Finance
261,614
262,802
262,078
724
In@pendent audit
42,168
42,166
35,260
6,908
Board of Review
5,683
5,683
4,644
1639
Treasurer
525,569
532,873
531,897
976
Information systems
597,003
544,503
544,473
30
Trial financial adininistration
2,134,919
2,067,219
2,034,228
32991
Mar actiHties:
Legal
662,879
667,879
687,028
851
Ubldies and supplies
552,961
547,961
525,144
22,817
Acquisition of laid
3,500
2,000
-
2,000
Dues and subscriptions
37,000
38,500
37,957
543
Trial other actiHties
1276,340
1276,340
1250,129
26,211
Trial general govemment
8,7]5,416
8,643,016
8,534,190
106826
Public Safety
Police:
Traffic bureau
990,666
1284,219
1283,618
601
Administrator
2,514,856
2,443,096
2,441295
1,803
Detec&e bureau
2,768,385
2,481693
2,480,892
801
Automotive service
536,750
602,284
601,784
500
C nrn unicabdnYRecords bureau
767,750
854,633
853,931
702
Cressugguards
54,525
57,207
56,807
400
School liaison
356,316
347,663
340,864
6,799
Reserve police
301939
319,647
319,647
-
Patrol bureau
9,851 687
9,862,494
9,861 295
1,199
Intelligence bureau
1664,873
1554,809
1554,107
702
Total police
19 807,747
19,807,747
19,794,240
13,507
Fire
AcIninebration
861,088
833,288
833,216
72
Firefghting
10,0.58,462
10,166,562
10,166,519
43
Fire prevention
301,878
418,778
418,757
21
Total fire
11 311428
11418,628
11,418,4W
136
Prolective inspection:
Finding Code Board of Appeals
1,580
1,580
316
1,272
Inspection
1,259,314
1259,314
1241,671
17,643
Trial prolective inspection
1260,894
1260,894
1,241,979
18,915
60
City of Livonia, Michigan
61
Required Supplemental Information
Budgetary Comparison
Schedule
- General
Fund (Continued)
Year Ended
November
30, 2011
Vanance with
Onginal budget
Final Budget
Actual
Final Budget
Eapenditures (Continued)
Public Safety (Continued)
Otherpmtecb%
Ofice of emergency poinarediess
$ 159,025
$ 159,025
$ 150,365
$ 8,660
Tafic commission
2,303
2,303
112
531
Total oBier pmIdebw
161328
161,328
152,137
9,191
Total public safety
3254137
32,648,597
32,606,848
41]49
Public Works
Public services- Highwa} , streets, and
maintenance:
Engindenng
269,378
246,978
219,530
27,448
Parks maintenance
1186,145
923,47
923,355
52
Administration
56,594
78,994
71,330
1,664
Equipment maintenance
(424,804)
(409,804)
(325,906)
(83898)
Building maintenance
1268,704
1280,458
1280,456
-
Steetlghting
264,000
424,984
424,449
535
Maintenance:
Streets
29,833
29,833
2,487
27,346
Tmfic services
117,115
9,615
9,562
33
Foms"
14,552
14,552
1,186
13,366
Total public works
2,]8151]
2,599,017
2,612,471
(13,454)
Parks and Recreation and cultural
Parks and recmalion:
Administration
441,480
465,480
465,321
159
Recreationfaalities
37,482
29,482
28,760
722
Recreation athletics
108,736
92,736
91,922
814
Total parks and recreation
587,698
587,698
586,003
1,695
Culla al:
Histonc Pmservaton Commission
2,527
2,527
991
1536
Histodol Commission
82,372
82,372
76,205
6,167
Arts Commission
21,205
21,205
20,373
832
Community mmuoas
715,992
729,592
712,757
16,835
Youth Commission
12,420
7,035
7,035
-
CommissiononAging
6,427
5,540
5,540
Total culbral
900,943
848,271
822,901
25370
Total parks and recreation and cult al
1488,641
1A5,969
1408,904
27,065
community and Economic Development
Gty Planning Commission
503,336
503,336
467,816
35,520
Zoning Board of Appeals
74,496
74,496
67,145
7,351
Total community and economic
development
5]],832
5]],832
534,961
42871
Emplge Benefits, Insurance, and Other
2,204,601
2,464,72
2,456,293
$619
Total ndit ms
$ 48,369,404
$ 48,369,403
$ 48,153,667
$ 215,736
61
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule
Community Recreation
Year Ended November 30, 2011
62
Variancewlh
Am ncetl
AmeiWed
Onginal Budjel
BWWt
&Mal
BuMat
Revenue
Pmperly taxes
$ 3,435,144
$ 3,435,144 $
3,341522
$ (93,622)
Charges far services
3,704,856
3,704,856
3,785,368
80,510
Interest
25,000
25,000
24,380
(620)
Mi%allannus reannue
7],500
7],500
81,011
3,511
Total revenue
7,242,502
7,242,502
7,232,281
(10,221)
Expenditures
Reaealion and wlhrre
5,360,130
5,499,257
4,930,748
568,509
Tansinrsout
2,506,651
2,506,652
2,506,652
TotalexpeWRums
],866,]81
8,005,909
],43],400
568,509
Net Change in Fund Balance
(624,279)
(/63,407)
(205,119)
558,288
Fund Balance- Beginning of year
3,433,259
3,433,259
3,433,259
-
Fund Balance -End of }ear
$ 2.!108.980
$ 2,M,852 $
3,228,140
$ 6+1`,2W
62
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule
Refuse Disposal System
Year Ended November 30, 2011
63
Vanancew0h
Am ndetl
Anna W
Onginal Budjet
BWWt
&Mal
Budget
Revenue
PmNrty taxes
$ 10,384,566 $
10,384,586 $
10,10.3,354
$ (281,232)
Charges far services
125,500
125,500
222,5A
919A
Interest
45,001)
45,001)
41,404
(3,596)
Mis iiannus revenue
25,000
25,000
18,368
(6,632)
Total revenue
10,580,186
10,580,186
10,385,703
(194,363)
Expenditures - Sandabon
12,078,141
12,363,821
11954,276
409,545
Net Change in Fund Balance
(1,4W,055)
(1 ]83,]35)
(1568,573)
215,162
Fund Balance- Beginning of year
6,884,696
6,884,696
6,884,696
Fund Balance -End of year
$ 5,396,60.3 $
5,100,963 $
5,316,125
$ 215,162
63
City of Livonia, Michigan
Required Supplemental Information
Budgetary Comparison Schedule
Public Safety Communication
Year Ended November 30, 2011
64
Vanancew4h
Amendetl
Anfeuded
Onginal Butl3el
Budget
Actual
Bullet
Revenue
Charges is services
$ 450,000 $
450,000 $
817,832
$ 367,832
Interest
20,000
20,000
22,038
2,038
Miscellaneous iceonfe
586,000
1129,156
851,211
(27],945)
Total revenue
1056,000
1599,156
1691,081
91925
E>penditures
Publicsakty
2,917,520
3,460,676
2,9/,079
483,597
Tans rsout
500,000
500,000
500,000
-
Totalexpentldures
3,417,520
3,960,676
3,4/,079
483,597
Net Change in Fund Balance
(2,361 520)
(2,361 520)
(1,785,M)
575,522
Fund Balance- Beginning of year
3,879,588
3,879,588
3,879,588
-
FundBalance- End of year
$ 1,518,068 $
1,518,068 $
2,093,590
$ 575,522
64
City of Livonia, Michigan
Required Supplemental Information
Pension System
Schedule of Funding Progress
Year Ended November 30, 2011
The schedule of fundi rig progress is as follows (000s omitted):
Actuanal
Aduanal Acmetl UAAL as a
Value of Duality(AAL) Unlurael Funded Ratio Ceseretl Percentage of
Actuanal Assets' Entry Age AAL(UAAD (Percent) Payroll Cevanx!
Valuation Date (a) (b) @a) (alta) (c) Payroll
11/30/0.5 $ 200,005 $ 167,226
$ (32,7]9)
1196% $ 15,885 (2064)96
11/30/06 205,101 169,506
(35,595)
1210 16,135 (220.6)
11/30/07 215,675 173,486
(42,189)
1243 15,657 (2695)
11/30/08 210,519 179,096
(31,423)
1175 16,055 (1957)
11/30/09 207,%9 190,134
(17,825)
1094 15,8% (1124)
11/30/10 203,934 195,105
(8,829)
1045 13,800 (640)
Valued using the fiti}ear"smoothing funding' market value
Schedule of Employer Contributions
Actuarial Valuation Annual Required Percentage
Fiscal Year Ended
Date
Contribution contributed
11/30/03
11/30/01
$ 392,639 100 %
11/30/04
11/30/02
- 100
11/30/05
11/30/03
- 100
11/30/06
11/30/04
- 100
11/30/07
11/30/05
- 100
11/30/08
11/30/06
- 100
11/30/09
11/30/07
- 100
11/30/10
11/30/08
- 100
11/30/11
11/30/09
- 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, 2010, the latest
actuarial valuation, is as follows:
Actuarial cost method
Aggregate (employer contribution)
Entry age normal (schedule of
funding progress)
Amortintion method
Level percent - Closed
Remaining amortintion period
Expected future working lifetime
Asset valuation method
Five-year smoothed market
Actuarial assumption:
Investment rate of return
8.00%
Projected salary increases- Including inflation at 4.75%
4.00%-11.92%
65
City of Livonia, Michigan
Required Supplemental Information
Retiree Health and Disability Benefits Plan
Schedule of Funding Progress
Year Ended November 30, 2011
The schedule of fundi rig progress is as follows (000s omitted):
Valued using the tw-year"smoothing fmitling' market value
Schedule of Employer Contributions
Aduanal Valuation
Actuanal
Percentage
Fiscal Year Eodeed
Date
Cmhibuton-
Conhitaudd"
Aduanal
A¢med
$ 7,755,379
188 q
11130N7
UML as a
6,455,607
Value of
Duality(AAD
Untrn a
Funded Ratio
Covered
Percentage of
Actuanal
Assets'
Entry Age
AAL(DAAD
(Percent)
Paymll
Covered
Valuation Date
(a)
(b)
Mrs)
(alta)
(c)
Paymll
11/38/85
$ 41967
$ 122,819
$ 8Q832
344 % $
33,312
2482 %
11/30/06
47,673
122,267
74,594
398
34,373
2170
11/30/07
52,882
115,685
62,863
456
35,354
1779
11/38/88
55,361
122,117
66,756
453
37,483
1785
11/38/89
57,845
137,822
79,97
428
36,981
2163
11/30/18
668,361
153,223
92,862
394
34,062
2726
Valued using the tw-year"smoothing fmitling' market value
Schedule of Employer Contributions
The required contribution is expressed to the City as a percentage of Paymll.
" The laical }ear eixted November 30, 2009 was the first year of implementation of GASB Statement No. 45. As
such, I was the first }ear the annual required mnlnbulion was calculated using the GASB No. 45 required 3P
yearamort¢ation. Previouslgthe CRyuselMor50years.
The information presented above was determined as part of the actuarial valuations at the dates
indicated. Additional information as of November 30, 2010, the latest actuarial valuation, is as
follows:
Amortization method Level percent, open
Remaining amortization period 30 years
Asset valuation method Five-year smoothed market
Actuarial assumptions:
Investment ate of return 8.00
Projected annual premium increases 6% for this year, 5.5% for next year,
and 4.75% thereafter
66
Aduanal Valuation
Annual Required
Percentage
Fiscal Year Eodeed
Date
Cmhibuton-
Conhitaudd"
11130N6
11130N4
$ 7,755,379
188 q
11130N7
11138N5
6,455,607
188
11130N8
11130N6
6,218,636
188
11130N9
11130N7
6,197,363
92
11/30/18
11130N8
6,155,752
92
11/30/11
11130N9
6,639,853
92
The required contribution is expressed to the City as a percentage of Paymll.
" The laical }ear eixted November 30, 2009 was the first year of implementation of GASB Statement No. 45. As
such, I was the first }ear the annual required mnlnbulion was calculated using the GASB No. 45 required 3P
yearamort¢ation. Previouslgthe CRyuselMor50years.
The information presented above was determined as part of the actuarial valuations at the dates
indicated. Additional information as of November 30, 2010, the latest actuarial valuation, is as
follows:
Amortization method Level percent, open
Remaining amortization period 30 years
Asset valuation method Five-year smoothed market
Actuarial assumptions:
Investment ate of return 8.00
Projected annual premium increases 6% for this year, 5.5% for next year,
and 4.75% thereafter
66
City of Livonia, Michigan
Note to Required Supplemental Information
Year Ended November 30, 2011
Reconciliation of Budgeted Amounts to Basic Financial Statements - The budgetary
conpanson 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 revenue,
expenditures, and changes in fund balances):
General Fund
Amounts per operating statement
Operating transfers budgeted as revenue and expenditures
Reimbursing transfers budgeted as revenue and expenditures
Amounts per budget statement
community Recreation Fund
Amounts per operating statement
Operating transfers budgeted as revenue and expenditures
Amounts per budget statement
67
Total
Total Revenue Expenditures
$ 46,845,189 $
47,360,430
958,548
293,237
500,000
500,000
$ 48,303,737 $
48,153,667
Total
Expenditures
$ 4,930,748
2,506,652
$ 7,437,400
City of Livonia, Michigan
Note to Required Supplemental Information (Continued)
Year Ended November 30, 2011
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 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.
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.
The Grants Fund has been budgeted; however, the City has adopted multi-year budgets for each
individual grant award that is encompassed in the activity of the Grants Fund, rather than an
annual budget. Due to the fact that the budget adopted and the financial information presented
are not for the same period, the financial activity has been omitted from the required
supplemental information. Comparisons of budget to actual on a grant award basis, which do
not contain any unfavorable budget variances, are available at City Hall.
Excess of Expenditures Over Appropriations in Budgeted Funds - The City did not have
significant expenditure budget variances.
M
Other Supplemental Information
M
City of Livonia, Michigan
Assts
Cash and investments
ReceneaNes
Taxes
Spe<al assessments
Due torn other governmental unite
Other
Inventory, teeraidexgemes, and other
Taal aceta
Liabilities and Fund Damnm
Liadlities
Pa<ounta Mnaade
Due to other Dna:
Psaued and other latelites
Deterred revenue
Total hatelites
Coad ruining inaovements
Total Dndwlan<es
Total hatelites and
Nnd dames
SPD Street Calve
Wjor Sheets Local Streek L9htrg Telemson Literary
$ - $ 515,6]1 $ 53j $ 800053 $ I,M.472
10,129
668997
252,708
-
-
6,%V1
9
$ 675,991 $
70,419 $
R539 $ 808,0.53 $
1216,01
-
-
1,056,75e
-
$ 40252 $
7,9z4 $
- $ 3.199 $
32443
58,038
Vr,781
8573
113,022
A8281
1,056,750
14,3136
913290
7,924
- 11,]Y2
159,as1
sn,701
760,495
-
-
-
9
-
-
-
-
1,056,75e
-
-
-
]aa281
-
Vr,781
768695
53539
A8281
1,056,750
$ 675,991 $
768,419 $
R539 $
80,053 $
1216,01
70
Other Supplemental Information
Combining Balance Sheet
Nonmajor Governmental Funds
November 30, 2011
Special Revenue Fur
oen Service Fung
517519 8
Qpfal Prgecb
Fur
- $
- 8
MunaMl
8
35970
-
533501
Bui M
Orange
Calfcwrse
PQud ted CMMWIly Rmdand
2005 M 2007 MM
PNh"an
Prgeck
Capbl
FwWures Transl Sid alk
ReNndng ReNndng
Other
Cwstructw
Impw "nt
8 X9603
8
517519 8
I.A.000 $
- $
- $
- 8
V7.Q7
8
35970
-
533501
6,010
16)26
111,963
110598
359]0
%0616
543501
12]9,081
111963
35970
$ 88.,W3 $
63,931 $
1,610,224 $
$ $ $ II{49 $
]2,696
$ M.03
$
63,931 $
1,610,n4 $
$
$
$
IW, 57
$
412,666
8 8,967
8
24,969 8
2]30]4 8
- 8
- 8
- 8
15,474
$
-
-
DIM
41253
826]
16,416
Y2,696
8 98
56,430
Miju
-
-
-
15,474
n,6
71
9,081
�0b16
533501
111,963
359]0
%0616
543501
12]9,081
111963
35970
$ 88.,W3 $
63,931 $
1,610,224 $
$ $ $ II{49 $
412,666
71
City of Livonia, Michigan
Assts
Dean and investments
aecenwbes
Taxes
assessments
Due tom other governmental unite
Other
Inventory, preroidexpemes, and other
Taal aceta
Liabilities and won Balances
Liaumes
Accounts Mnaabe
Due to other that
Accrued and other Ibblites
Deterred revenue
Total bblites
Cord ruining inprovements
Total Nndmlances
Total bblites and
Nnd dames
Other Supplemental Information
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
November 30, 2011
Capial Protect; Fund
Total Nonnrepr
Captal Special Court Burling Courthouse Governmental
Improvenent Assessments IWovementa Construction Fund
$ 2,896207 $ 662,9%0 $ 1625,033 $ - $ 10.6n15M
- 656619 - - 656619
1561
]0,196 7,196%
7,1t6 7,1t6
$ 2yHpWll $ 1,119,:59 $ 1,025,0.33 $ $ 12,316,95,[
$ 3Y2,112 $ 36,T]5 $ 26,389 $ - $ M2019
- - - - 58,938
ia6p,[2
- 414995 - - 526.769
MM2 451 T]9 26,389 - 1,(13259
7116 - - - 7125
2,(n2n
6)0616
2,r ,171
6)7%79
-
- 3266.000
53,139
-
-
-
- 533501
ni9%3
-
-
-
- ]aa281
3399]9
938653
938653
2,6)5296
667,829
938653
18,783695
$ 2y7],ffia $
1,119,:59 $
1,025933 $
$ 12316,95,[
72
City of Livonia, Michigan
Revenue Fund
73
SPD Street
Cane
Wi Sheets
Local Slreeth
L9fi1^g
Teemson
Ifill
Revenue
Property base
s
s -
s - s
- s
3,110572
Federal revenue
106,003
-
-
Slateaaloalrevenue
1,30],361
1,615,409
-
-
158,073
Charges Jansenism
-
-
-
-
1Q,165
Finesand Mkilures
-
]4,0]4
Interest
1$63
I'M
-
5,400
6,933
Other revenue:
Specal asesments
-
1 2b1,362
Miscellaneous income
156,700
735,463
1960
Total revenue
4,A1350
1637,186
1 2b1,362
740,483
3,7301Q3
Expenditures
Current
Puri<sfely
-
Puna Works
3,097,612
2,W4,498
1129,401
Recreaton andculWre
468,096
3,746,091
Cabal wOay
-
-
-
-
-
oeRse
eretterrent
OnciRl
-
-
-
-
Interest and
Total axpenaWres
3037,612
2,024,496
1129,401
656,096
37,16,691
Excess of Revenue Orer(Under)
Expenditures
1473,736
(387312)
132,361
Z Bas
(15,9,18)
Other Financing Sources (Uses)
Transfers In
1066,816
-
Trainers; out
(1 T16,&50)
(300 000)
(%BXB)
Total other financing
soi Tses)
(1 T]6,850)
]]6,816
-
(58518)
-
Net Change inFund Marcos
T36866
069536
132,361
(906,163)
(15,9,18)
Fund Banal(Del -Beginning
ofyear
380,813
3]0961
(78822)
1676,666
1,0l
[out BeNnces-End ofyear
$ 57),]01
$ 761
$ 8539 S
788,281 S
1,056,750
73
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Deficit)
Nonmajor Governmental Funds
Year Ended November 30, 2011
Special
Reenue Fug
Den service Fund:
Captal Prgecb Fug
MunciiMl
-
Bulcim
Dranage
C ffcwrse
A4ud ted
CMMWIly
Rmdand 2005 M
2007 MM
PNh"and
Prgeck
Capbl
FwWures
Trani
Sid alk ReNndng
ReNndng
Other
Cmsimciim
Impm "nt
-
M'00e
i'M0,eee
M5,eee
-
-
8
8 W.W 8
3,]62,]68-
1,36,876
A1358
693
1,819,161
6,3i7,TA
3]6,101
2,34,876
596358
123,655
96691
76,90.3
- -
-
-
-
100jb
Z,131
682
(21698)
-
-
580,004
3]6,101
5,960
5'%0
4,930
16559 -
-
-
662
1,662
150
9523
(z3 sso)
91,914
1023007
3,018,850 -
-
-
682
101976
74
A
-
1,819,161
123,655
-
-
-
M'00e
i'M0,eee
M5,eee
-
-
131,101
1,36,876
A1358
531]23
1,819,161
6,3i7,TA
3]6,101
2,34,876
596358
123,655
(49089)
3,816
(481969)
(3]6,101)
(2.34s76)
(596358)
682
(21698)
-
-
580,004
3]6,101
2,31,876
A6 s
23580
(z3 sso)
5 0,001
3]6,101
2,2s1,876
r3 s
W580)
D580
(49809)
3,866
(68,9as)
-
-
-
(2z,s96)
I'm
1 818pu
5]9 c55
1 326026
tu061
M8,28
$ 8811,616 $
5ffi,W1 $
12N,881 $
$
$
$
111,983 $
39,678
74
City of Livonia, Michigan
Other Supplemental Information
Combining Statement of Revenue, Expenditures, and Changes in
Fund Balances (Deficit) (Continued)
Nonmajor Governmental Funds
Year Ended November 30, 2011
75
Twa
Nonirejor
Carol
Special
Conti Building
Courthouse
Gwemmental
Imlxweoent
Assessments
Innifirovements
Construction
Fuld
Revenue
Property taxes
8 1.2801
8 -
8 -
8 -
8 9,35D588
Federal revenue
-
-
-
-
291,696
Slate atlloal revenue
-
-
-
-
6,195357
Charges brservices
-
-
-
2239,12
Finesand Mkilures
5936,1
HF1,569
Interest
19319
15,040
5,618
14
86983
Other revenue:
Specal asesments
-
312,855
-
-
I,N4M
Miscellaneous income
903,416
Total revenue
I,M,916
327,906
56,1962
14
19,049,]]1
Expenditures
Current
Puticsfety
-
-
6,015
14
53],]52
Puna works
-
-
-
-
10'4 0
Recrealon andculwre
-
s,M Bso
Carol ofictay
1289.6,16
344,713
11,150
-
1,370,175
Dense
Onci�leretirmrent
-
-
-
-
1450,000
Interest and other
1,711 5
Total axpenaWres
1 2899,16
31,1.713
118,165
14
2148]522
Excess of Revenue Orer(Under)
Expenditures
10270
(16907)
416817
-
(2,07,751)
Other Financing Sources (Uses)
Transfers In
12,912
-
-
4,850,6/7
Trainers; out
(A6358)
(3,155395)
Total other financing
soi Tses)
12,912
-
096358)
-
1®53,11
Net Change in Fund Balances
23,182
(16807)
(99511)
-
(322410)
Fund Balances(Del -Beginning
nfyear
2,%2,111
s3,1c36
1 U8,194
-
11,026.105
Fund distances -End offiear
$ 2,605,296
$ (Al
$ 91
$ -
$10,70.05
75
City of Livonia, Michigan
Trust Funds
76
Pension andOther Enployee BeneRPlms
Agents Funds
Engloyees'
Investment
Retirenent
Admndation
Special Trust
System
VERA
Total
Fund
Fund
Assets
cash andcash ecurdlenis
$ 824,344
$ 212,203 $
1036,541
$ 962,167
$ 2,011fi35
Investments:
US. government securities
11131813
8,154190
26,486,003
-
-
Wideral¢edmortgage
obligations
10,154935
3,951,822
14,106,751
-
-
commn stock
84138,110
14,280590
99,018,700
-
-
cohpoatebonds
28,872,691
9,252,19
38,124818
-
-
Realestateinveshrenttrust
10,082,408
149532
10231,9W
-
Foreign houses
3762711
1,252,481
5015,192
-
-
MUWalNncis
9,743,559
23,93,767
51,017,326
-
-
Securdieslendingmllateal
pool -Mutual fund;
1919,469
-
1919469
-
Accounts resemble
286,895
94251
381.146
-
-
Due 5omag:ncyrund:
59,207
131072
796,99
Total assets
1A61I6,142
61958,095
248,134,23]
S 962,16]
52,011,635
Liabilities
Accounts payable
599619
112,845
702,464
$ 165,353
$ -
DuetooMergovernnentalunRs
-
-
-
-
-
Duetoprinerygovernnent
-
1239,094
1239,094
-
-
Duetmtrustrund:
-
-
-
196219
Accrued and other liabildies
-
-
-
535
2,011fi35
Mounts due to goulash under
securdies lending agreement
$112,887
2112,887
Total liabildies
2,102,506
1351939
4,054,445
$ 962,167
$ 2,011,635
Net Assets Held in Trust Por
Pension and Other
Employce Benefits
$164,073,636
$ 60,606,156 $
2",679,792
76
Other Supplemental Information
Combining Statement of Net Assets
Fiduciary Funds
November 30, 2011
Agency Funds
Hdoncal Art Comnssion
LibaryTrust Comrission Comnossion on Aging Undtntuted
Fund Fund Fund Fund Tax Fund Total
$ 15,310 $ ]0190] $ 102,484 $ 2,787 $ 6,842,041 $10,638331
$ 15,310 $ 701,907 $ 102,404 $ 2,707 $ 6,042,041 $10,630,331
$ - $ - $ - $ - $ - $ 165,353
- - - - 6,842,041 6,842,041
- - - - - ]96279
15,310 ]01907 102,484 2,]8] - 2,84
$ 15,310 $ 701,907 $ 102,404 $ 2,707 $ 6,042,041 $10,630,331
77
City of Livonia, Michigan
Other Supplemental Information
Combining Statement of Changes in Fiduciary Net Asset
Fiduciary Funds
Year Ended November 30, 2011
Additions
Inveshnent ireane:
Interest and dividends
Net change in fair value of investments
Less investment related expenses
Net inveshnent ireane
C Mbrhons:
Employer
Employee
Totalcontnbutrons
Total additions - Net
Deductions
f ension benefit payments
Medrol bereft payments
Refunds of contnbu0ons
Administrative expenses
Totaldeduanons
Net (Decrease) Increase
Net Assets Held in Trust for Pension and Other
Employee Benefits- Beginning of year
Net Assets Held in Trust for Pension and Other
Employee Benefits- End of year
III
Employees'
Retirement
System WBA Total
$ 5,371943 $
1356,466 $
6,728,489
5,148,652
2,023,360
],1]2,012
(502,393)
(96,702)
(599,095)
10,018,202
3,283,124
13,301326
-
6,105,569
6,105,569
489,911
661,863
1,157,794
489,911
6,]]3,452
7,263,363
10,506,113
10,056,576
20,564,669
13,809,230
-
13,809,230
-
7,044,256
7,044,256
861,181
-
861,181
243,061
18,312
261393
14,913492
7,062,568
21976,060
(4,405,379)
2,994,008
(1411371)
188,419,015 57,612,148 246,091,163
$1111,073,636 $ 60,606,156 $244,6]9,]92