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HomeMy WebLinkAbout2007CAFRCity of Oshkosh Annual Financial Report Including Auditor's Report For the fiscal year ending December 31, 2007 ON THE WATER CITY OF OSHKOSH OSHKOSH, WISCONSIN December 31, 2007 Table of Contents INTRODUCTORY SECTION Page No. Letter of Transmittal 1 - 3 Council Members and Principal Officers 4 The City 5 - 8 Oshkosh Unified School District 9 FINANCIAL SECTION Independent Auditors' Report 10 - 11 Management's Discussion and Analysis 12-20 Basic Financial Statements Government -wide Financial Statements Statement of Net Assets 21 Statement of Activities 22 Fund Financial Statements Balance Sheet - Governmental Funds 23 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Assets 24 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 25 Reconciliation of Statements of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities 26 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 27 Statement of Net Assets - Proprietary Funds 28 Statement of Revenues, Expenses and Changes in Net Assets -Proprietary Funds 29 Statement of Cash Flows -Proprietary Funds 30 Statement of Net Assets -Fiduciary Funds 31 Statement of Changes in Net Assets -Fiduciary Funds 32 Notes to Basic Financial Statements 33 - 57 CITY OF OSHKOSH OSHKOSH, WISCONSIN December 31, 2007 Table of Contents Other Supplemental Information Page No. Combining Balance Sheet - Non -major Governmental Funds 58 Combining Statement of Revenues and Expenditures and Changes in Fund Balances - Non -major Governmental Funds 59 Combining Statement of Net Assets-Nonmajor Other Proprietary Funds 60 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets - Nonmajor Other Proprietary Funds 61 Combining Statement of Cash Flows-Norunajor Other Proprietary Funds 62 Combining Statement of Net Assets - Internal Service Funds 63 Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds 64 Combining Statement of Cash Flows - Internal Service Funds 65 Combining Balance Sheet - Nonmajor Special Revenue Funds 66 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Special Revenue Funds 67 Combining Balance Sheet - Nonmajor Capital Project Funds 68 Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds 69 CITY OF OSHKOSH OSHKOSH, WISCONSIN December 31, 2007 Table of Contents STATISTICAL SECTION This part of the City of Oshkosh, Wisconsin's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the city's overall financial health. Contents Financial Trends Exhibit No. A-1 through A-5 These reports and schedules contain trend information to help the reader understand how the city's financial performance and well-being have changed over time. Revenue Capacity A-6 through A-10 These schedules contain information to help the reader assess the city's most significant local revenue source, the property tax. Debt Capacity A-11 through A-15 These schedules present information to help the reader assess the affordability of the city's current levels of outstanding debt and the city's ability to issue additional debt in the future. Economic and Demographic Information A-16 through A-26 These schedules present information to help the reader understand the environment within which the city's financial activities take place. Operating Information A-27 through A-29 These schedules contain information to help the reader understand how the city's financial report relates to the services the city provides and the activities it performs. Page No. 70-76 77-81 82- 106 107-120 121 - 128 INTRODUCTORY SECTION April 4, 2008 Honorable Mayor and Council Members, City of Oshkosh: The Annual Financial Report of the City of Oshkosh, Wisconsin, for the fiscal year ended December 31, 2007, is submitted herewith. This report was prepared by the City's Department of Finance. Responsibility for both the accuracy of the presented data and the completeness and fairness of the presentation, including all disclosures, rest with the City. We believe the data as presented is accurate in all material respects; that it is presented in a manner designed to fairly set forth the financial activities of the City and its various funds and account groups; and that all the disclosures necessary to enable the reader to gain the maximum understanding of the City's financial activities have been included. ACCOUNTING SYSTEM AND BUDGETARY CONTROL The City's accounting records for general government operations are maintained on a modified accrual basis, with the revenues being recorded when available and measurable and expenditures being recorded when the services or goods are received and the liabilities are incurred. Accounting records for the City's utilities and other enterprise funds are maintained on the accrual basis. In developing and altering the City's accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute, assurance regarding: 1) the safeguarding of assets against loss from unauthorized use or disposition and 2) the reliability of financial records for preparing financial statements and maintaining accountability for assets. The concept of reasonable assurance recognizes that: 1) the cost of a control should not exceed the benefits likely to be derived and 2) the evaluation of costs and benefits requires estimates and judgment by management. Budgetary control is maintained at the sub -function level by the encumbrance of estimated purchase amounts prior to the release of purchase orders to vendors. Purchase orders which result in an overrun of sub -function balances are not released until additional appropriations are made available. Open encumbrances are reported as reservations of fund balance as of December 31, 2007. THE REPORTING ENTITY AND ITS SERVICES The City provides a full range of municipal services contemplated by Statute or character. This includes police, fire, streets and sanitation, health and social services, parks, public improvements, library and museum, mass transit, planning and zoning and general administrative services. The accompanying financial statements include all significant operations of the City. A summary of this year's revenues and expenses are included in the new Management's Discussion and Analysis section which is in the financial section of this audit report. DEBT ADMINISTRATION The rates of net bonded debt to assessed valuation and the amount of bonded debt per capita are useful indicators of the City's debt position to municipal management, citizens, and investors. These data for the City of Oshkosh at the end of 2007 were as follows: RATIO OF DEBT TO ASSESSED VALUE DEBT AMOUNT (95.94 OF PRESENT MARKET) PER CAPITA Direct Bonded Debt $119,580,048 3.21% $1,807.05 Outstanding general obligation bonds at December 31, 2007 totaled $119,580,048 of which $385,087 were issued for Parking Utility, $15,636,257 for Sewer Utility, $12,745,774 for Water Utility, $1,232,359 for Industrial Park Fund, $441,627 for Transit System, $32,122,650 for Tax Incremental Finance District, $1,140,000 for the Golf Course, $354,016 for Cable TV, and $4,398,655 for Storm Water Utility. On February 14, 2007, $7,950,000 of Corporate Purpose Bonds, and $3,375,000 of Promissory Notes, were sold at true interest rate of 4.2761, and 3.9494 respectively. Assessed valuation of $3,571,509,200 represented an increase of 2.45% from the preceding year. The City's bonds have an Aa3 rating from Moody's Investors Service, Inc. 2 CAPITAL PROJECTS FUNDS The proceeds of general obligation bond issues are accounted for in Capital Projects Funds until improvement projects are completed. At the end of the fiscal year, completed projects are accumulated in the capital asset category for Governmental Activity Funds. INDEPENDENT AUDIT The City is required to have an annual audit of its financial statements by independent certified public accountants selected by the City Council. This requirement has been complied with and the auditors' reports are included in the report. ACKNOWLEDGMENTS The preparation of this report on a timely basis could not be accomplished without the efficient and dedicated services of the entire staff of the Department of Finance. I should like to express my appreciation to all members of the Department who assisted and contributed to its preparation. I should also like to thank the members of the City Council for their interest and support in planning and conducting the financial operations of the City of Oshkosh in a responsible and progressive manner. Respectfully submitted, CITY OF OSHKOSH JOHN M. FITZPATRICK, Acting City Manager Vet,02 O PEGGY STEENO, Director of Finance JMF:PAS:Iab 3 CITY OF OSHKOSH COUNCIL MEMBERS AND PRINCIPAL OFFICERS COUNCIL MEMBERS Frank Tower, Mayor Bryan L. Bain, Deputy Mayor Burk Tower Paul J. Esslinger Jessica J. King Dennis McHugh Tony Palmeri PRINCIPAL OFFICERS John M. Fitzpatrick, Acting City. Manager Peggy A. Steeno, Director of Finance Lynn Marquardt, Assistant Director of Finance ORGANIZATION CHART City Council Mayor City Manager Director of Finance Assistant Director of Finance 4 THE CITY The City is a political subdivision of the State incorporated in 1853, is the County seat of Winnebago County, and is located on the western shore of Lake Winnebago in the Fox River Valley 173 miles north of the City of Chicago, Illinois, and 275 miles east of the cities of Minneapolis and St. Paul, Minnesota. The corporate limits of the City encompass approximately 24.24 square miles and the population is currently 65,810. THE CITY COUNCIL The City Council is the legislative and policy making body of the City and is composed of seven Council Members, who are elected at large for two-year terms. The Mayor presides over Council meetings. The Deputy Mayor presides at Council meetings in the Mayor's absence. The responsibilities of the City Council include: (i) enacting ordinances, resolutions and orders necessary for the proper governing of the City's affairs; (ii) reviewing and adopting the annual budget; (iii) reviewing and deciding on recommendations from various boards and commissions; (iv) establishing policies and measures to promote the general welfare of the City and safety and health of its citizens; and (v) representing the City at official functions with other governmental agencies and organizations. The present members of the City Council and the expiration of their respective terms of office are as follows: Expiration Name Title of Term Frank Tower Mayor 2009 Bryan L. Bain Deputy Mayor 2009 Burk Tower Council Member 2010 Paul J. Esslinger Council Member 2010 Jessica J. King Council Member 2009 Dennis McHugh Council Member 2010 Tony Palmeri Council Member 2009 CITY ADMINISTRATION Council Member Frank Tower was generally elected Mayor for the City of Oshkosh in April, 2007. He previously served on the Common Council being elected in April, 2002 and re-elected in April, 2004. He also served a one-year appointment in 2005 on the Winnebago County Board for District 22. He is the Council representative on the City's Redevelopment Authority and previously served as a citizen member of the Traffic Review Advisory Board and, as a Council representative, served on the Cable Commission, Housing Authority, Parks, and Convention and Visitors Bureau Boards. Frank grew up in Oconomowoc, Wisconsin and attended both the University of Wisconsin -Milwaukee and University of Wisconsin -Oshkosh where he studied economics and computer science. He is the Operations Manager at YoderCom, a local wireless data communications company. Frank serves as a board member of the Oshkosh Area United Way, Oshkosh Symphony Orchestra, Oshkosh Arts, Oshkosh Community Players, OAEDC, Chamco, and the Wisconsin State Telecommunications Association. He is a member of the Downtown Rotary, Oshkosh Jaycees, Oshkosh Pilots Association and Propel. He is also a graduate of Leadership Oshkosh (class of 1999) and the Oshkosh Police Citizens Academy (Top Gun recipient) and volunteers with Junior Achievement. He is an avid motorcyclist, pilot and proud Jeep Wrangler owner. Frank and his wife Kristen have lived in the Oshkosh community for fourteen years and reside on South Park Avenue at 1369 W South Park. The Acting City Manager, John M. Fitzpatrick, is the Chief Executive Officer of the City and is responsible for planning, organizing, and directing the activities of the municipality by interpreting the City Council determined policy, coordinating departmental efforts, handling citizen inquiry and complaints, screening and preparing agenda materials and recommending legislation and policy matters. The Director of Finance/Treasurer, Peggy A. Steeno, is responsible for the following divisions: Assessor, Collections and Accounting, Parking, and Water and Sewer Utilities. She assists the City Manager in preparing the City Budget and is responsible for the administration of the budgeted funds. Prior to her appointment as Director of Finance in April 2008, Ms. Steeno was the Business and Administrative Services Manager for the Waukesha Water Utility in Waukesha, Wisconsin. Prior to 1999, Peggy was the Finance Supervisor for the City of West Allis, Wisconsin. In 1992, Peggy began her public sector career in Madison, Wisconsin at the Wisconsin Department of Agriculture Trade and Consumer Protection as an Agricultural Auditor. Peggy received a MBA with double emphasis in Human Resources and Training and Technology from the University of Wisconsin-Whitewater. She has also earned a BA with a double major in Managerial Accounting and German from the University of Wisconsin -Stevens Point. In addition, Peggy is a Certified Public Accountant. The Assistant Director of Finance, Lynn K. Marquardt, is responsible for supervising and participating in all general, utility, and special accounting activities of the City. Prior to her appointment as Assistant Director of Finance in 2003, Ms. Marquardt worked in the City's Collections, Accounting, and Utility divisions for over twenty-five years in various capacities ranging from cashier to officer supervisor. Ms. Marquardt has a B. B. A. Degree with a major in Finance from the University of Wisconsin -Oshkosh and an Associate Degree in Computer Information Systems -Microcomputer Specialist from Fox Valley Technical College. PRINCIPAL GOVERNMENTAL SERVICES PERFORMED BY THE CITY Among the services it provides, the city maintains and oversees the capital budget operations of police and fire departments, water and sewerage utilities, parking utility, a public library, a museum, mass transit, planning and zoning, parks and recreation and public works departments. Brief descriptions of these services are set forth below. POLICE DEPARTMENT — The Police Department, which is governed by a five member Police and Fire Commission comprised of citizens appointed to five-year terms by the Mayor, includes 99 sworn officers and 30 full and part-time civilian employees, 7 community service officers, and 21 school crossing guards. The full-time mission of the Oshkosh Police Department is to promote public safety and to enhance the quality of life in our community through innovative policing and community partnerships. FIRE DEPARTMENT — The Fire Department provides fire protection to residents within the City and paramedic ambulance service to the City and surrounding communities. The Fire Department, which is governed by a five member Police and Fire Commission comprised of citizens appointed to five-year terms by the Mayor, maintains six fire stations, which house the department's 22 pieces of fire, safety and rescue equipment. The department has 108 full-time employees. PUBLIC LIBRARY — The Oshkosh Public Library serves approximately 38,000 cardholders from Oshkosh and surrounding towns through the main library, library website, and deposit collections. Over 370,000 items in the collections are checked out over 1,110,000 times in a year and over 400,000 visits are made to the website of the library. Pursuant to ch 43.54 of the Wis State Statutes, a Library Board of Trustees governs the Library. MUSEUM — The Museum serves the community with permanent and temporary exhibits, as well as educational services, programs, publications and research facilities. Approximately 50,000 people visit the Museum each year. The Museum is entrusted with the preservation and care of 250,000 objects, photographs, and documents. A seven -member board, plus two alternates, governs the Museum. DEPARTMENT OF PARKS — The Department of Parks develops and maintains the City's 440.28 acres of park and public areas including recreational facilities, zoo, and municipal golf course. MASS TRANSIT — The Transit System consists of 17 buses serving nine routes. The buses travel over 475,000 miles annually and provide mobility for 1,196,000 passengers. The system also provides a variety of specialized transportation services for the community. A seven -member Transit Advisory Board governs activities of the Transit System. PARKING UTILITY — The Parking Utility operates a 195 stall Park Plaza ramp, twelve metered and eight unmetered off-street parking lots, containing 1,613 parking stalls. Spaces are ]eased on a monthly basis in eleven of the City lots consisting of 240 stalls. In 1987, a Business Improvement District was formed in the downtown area. The BID assists in financing one of the downtown lots. PUBLIC WORKS DEPARTMENT — The Public Works Department consists of seven separate divisions as follows: The Engineering Division is responsible for the design and preparation of drawings and specifications for street construction and maintenance, sidewalks, sanitary sewers, water mains, storm sewers, as well as construction management for these projects. The Street Division provides for maintenance of public roadways/alleys/parking lots, and storm/sanitary sewers within those streets. Maintenance of storm sewer facilities includes ditching and drainage work. The Central Garage Division is responsible for repair, maintenance, and service of City vehicles in twelve departments. The Sanitation Division provides for collection of solid waste material for residential and smaller commercial/industrial firms. Disposal of this solid waste is governed by agreements with the Winnebago County Solid Waste Management Board. The Sanitation Division is also responsible for the City's recycling program. The Water Utility operates a twenty million gallon per day water filtration plant put into operation in 1999, operating 24 hours a day, to provide production and distribution for general public use, industrial and fire fighting purposes. The source of water supply is Lake Winnebago. Three underground reservoirs provide 2,500,000 gallons of water storage. Elevated storage consists of two 750,000 -gallon tanks, a 1,250,000 -gallon tank and a 1,500,000 -gallon tank. The average daily pumpage is 7.38 mgd in 2006. The Water Distribution Division is in charge of daily and emergency maintenance of all water mains, hydrants, services, and meters. The Sewerage Utility, collection and treatment services, consists of a system which is designed to process 20,000,000 gallons per day, dry weather flow treatment plant. The average daily flow for 2006 was 10.14 mgd. DEPARTMENT OF TRANSPORTATION — The Department of Transportation maintains and installs all signs, lighting systems and traffic signals for public streets, parks and city buildings. HEALTH DEPARTMENT —The Health Department is organized into four divisions: Administration and Vital Statistics, Public Health Nursing, Environmental Health, and Laboratory. CITY EMPLOYEES The City presently has approximately 580 full and part-time employees, of which 12 are officials or administrators, 39 are supervisors/managers, 198 are involved in protective services, 33 are professionals, 65 are paraprofessionals, 150 are public works, and 83 are office, clerical or helpers. Certain groups of employees of the City, including Fire, Police, Public Works, office and clerical employees, as well as Professionals, are organized into labor unions for purposes of conducting collective bargaining with the City. Contracts for 2008 are in the process of being negotiated. Substantially, all City employees participate in the Wisconsin Retirement Fund. Pursuant to State Law, annual contribution rates to the fund are based on assumptions concerning mortality, disability and interest rates, salary increases of member employees, and the number of employees withdrawing from the fund prior to age 55. Currently, the City pays the entire cost of the program of general City workers, police officers, and firefighters. The City's total contribution to the Retirement Fund was $4,181,818.58 (unaudited) for the year ended December 31, 2007, which includes prior service costs. In addition to the above referenced retirement fund, the State administers a plan for 28 retired employees of the Police and Fire Departments. These individuals had been covered by a private pension plan prior to the City joining the present plan. The City funds retirement contributions to meet current benefit payments to retired employees. The total cost for the year ended December 31, 2007 was $137,130 (unaudited). OSHKOSH UNIFIED SCHOOL DISTRICT In 1982, new legislation in the State provided for the separation of school districts, as a separate legal entity, from the City. As a result, the former Area School District is now known as the Oshkosh Unified School District. The District includes the City of Oshkosh and the surrounding territory and encompasses an area of approximately 111 square miles. With respect to equalized values for the year 2007, 73.74% of the equalized valuation of the property in the Unified School District is situated within the corporate limits of the City. This law further provided that the assets of the school district (land, buildings, and equipment) formerly held in the name of the City, be sold to the school district and that the school district issue their promissory note in an amount equal to the outstanding debt (principal and interest) of the City incurred for school purposes. The administration of the District is exercised by a school board consisting of seven members who are elected at large for staggered three-year terms of office. The District owns and operates two senior high schools, six charter school, five middle schools and sixteen elementary schools. The District has approximately 1,372 employees, both certified and non -certified. The current enrollment has decreased by approximately 1.57% since the 1997/98 school term. The enrollment for the Unified School District for the past eleven years is as follows: Year Enrollment 2007/08 10,374 2006/07 10,299 2005/06 10,256 2004/05 10,304 2003/04 10,406 2002/03 10,547 2001/02 10,658 2000/01 10,602 1999/00 10,618 1998/99 10,569 1997/98 10,540 In addition to Unified School District operated schools, there are seven private and parochial schools (kindergarten through grade 12). There are approximately 1,216 students enrolled in these private schools. Fox Valley Technical College provides the vocational and technical education for City residents and the Fox Valley area. Operations are funded through property tax levies of the various municipalities of the District, including the City. The Technical College currently has 745 full-time equivalent students. The actual head count of students served is 5,280. 9 FINANCIAL SECTION INDEPENDENT AUDITOR'S REPORT INDEPENDENT AUDITORS' REPORT To the Mayor and Common Council City of Oshkosh Winnebago County, Wisconsin We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Oshkosh. ("the City") as of and for the year ended December 31, 2007, 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's management. Our responsibility is to express opinions on these financial statements based on our audit. We did not audit the financial statements of the Housing Authority of the City of Oshkosh, a component unit discretely presented as described in Note A(1) to the basic financial statements. Those financial statements were audited by other auditors whose report has been furnished to us, and our opinion on the basic financial statements, insofar as it relates to the amounts included for the Housing Authority, is based on the report of the other auditors. 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 free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City as of December 31, 2007, and the respective changes in financial position and cash flows, where applicable, thereof and the respective budgetary comparison of the general fund, for the year then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated June 26, 2008, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report is 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 report or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards and important for assessing the results of our audit. 10 The management's discussion and analysis is not a required part the basic financial statements but is supplemental information required by accounting principles generally accepted in the United States of America. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplemental information. However, we did not audit the information and express no opinion on it. Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The financial information listed in the table of contents as other supplemental information are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such 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. The "Letter of Transmittal" and "Statistical Section" listed in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements of the City. The information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on such information. Certified Public Accountants Fond du Lac, Wisconsin June 26, 2008 I MANAGEMENT'S DISCUSSION AND ANALYSIS Management's Discussion and Analysis December 31, 2007 As management of the City of Oshkosh, we offer readers of the City's basic financial statements this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2007. The analysis focuses on the City's financial performance as a whole. Financial Highlights • The assets of the governmental activities of the City exceeded its liabilities as of December 31, 2007 and 2006 by $61,741,844 and $61,011,826 (net assets), respectively. Of this amount, $716, 389 and $(67,571) (unrestricted net assets), respectively, may be used to meet the City's ongoing obligations to citizens and creditors. • The City's governmental activities net assets increased by $730,018 and $10,357,383, respectively. Several factors contributed to the overall increase as follows: • The property tax rate rose 2.8% and decreased 28% per $1,000 of property value for the years ended December 31, 2007 and 2006, respectively. • As of December 31, 2007 and 2006, the City's governmental funds reported combined ending fund balances of $27,752,581 and $26,173,307, an increase of $1,579,274 for 2007 and an increase of $355,764 for 2006. Approximately 35% and 33% of this total amount, $9,707,717 and $8,514,932 is available for spending at the City's discretion (unreserved fund balance), respectively. • As of December 31, 2007 and 2006, unreserved fund balance for the general fund was $7,116,709 and $6,148,721, or approximately 19% and 16% of total general fund expenditures, respectively. • The City's total general -obligation debt decreased by $270,445 (.4%) during 2007. The key factor in this decrease was the issuance of $5,200,172 of general obligation debt and $5,470,617 of principal payments of general obligation debt. • The City's total general -obligation debt increased by $3,220,439 (5%) during 2006. The key factor in this increase was the issuance of $11,260,000 of general obligation corporate purpose bonds and $2,500,000 of general promissory notes to finance capital improvement projects. Also, the City issued $11,865,000 of general obligation refunding bonds. Overview of the Basic Financial Statements This discussion and analysis is intended to serve as an introduction to the City's basic financial statements. The City's basic financial statements are comprised of three components: 1) government - wide financial statements, 2) fund financial statements, and 3) notes to the basic financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City's net assets changed during the most recent year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. (e.g., earned but unused vacation leave.) 12 Management's Discussion and Analysis December 31, 2007 Both of the government -wide financial statements distinguish functions of the City that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business - type activities). The governmental activities of the City include: general government, public safety, public works, health and welfare, parks and recreation, transportation and community development. The business -type activities of the City include transit, water utility, sewer utility, Grand Opera House, parking utility, redevelopment project, industrial park, golf course, storm sewer utility and TIF districts. The government -wide financial statements include not only the City itself (known as the primary government), but also a legally separate Housing Authority and Redevelopment Authority for which the City is financially accountable. Financial information for the component unit is reported separately from the financial information presented for the primary government itself. The government -wide financial statements can be found on pages 21-22 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City can be divided into three categories: governmental funds, proprietary funds and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near -term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating the City's near -term financing requirements. ft is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the City's near -term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City maintains 20 individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures and changes in fund balances for the general fund, and debt service fund, which are considered to be major funds. Data from the other 18 governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements elsewhere in this report. The City adopts an annual appropriated budget for the general fund, debt service fund and selected special revenue funds. As part of the basic governmental fund financial statements, budgetary comparison statements have been provided for the general fund to demonstrate compliance with the budget. The basic governmental fund financial statements can be found on pages 23-27 of this report. Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City maintains 28 individual enterprise funds. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City maintains four individual internal service funds. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. 13 Management's Discussion and Analysis December 31, 2007 Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the transit, water utility and sewer utility, all of which are considered to be major funds of the City. Data from the other 25 enterprise funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor enterprise funds is provided in the form of combining statements elsewhere in this report. The four internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 28-30 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The basic fiduciary fund financial statements can be found on pages 31-32 of this report Notes to the basic financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the basic financial statements can be found on pages 33-57 of this report. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds and internal service funds are presented immediately following the footnotes. Combining and statements and schedules can be found on pages 58-69. Government -wide Financial Analysis Net assets. As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City, assets exceeded liabilities by $174,858,896 and $163,896,067 at the close of 2007 and 2006, respectively. City of Oshkosh's Net Assets Governmental Activities 2007 Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ 44,173,780 108,109, 042 152,282,822 70,868,293 19,672,685 90, 540, 978 Business -Type Activities 2007 $ 50,156,120 186,130,400 236,286,520 110,351,912 12,817,556 123,169,468 Total 2007 $ 94,329,900 294,239,442 388,569,342 181,220,205 32,490,241 213,710,446 45,658,953 99,063,739 144,722,692 15,366,502 - 15,366,502 716,389 14,053,313 14,769,702 $ 61,741,844 $ 113,117,052 $ 174,858,896 14 Management's Discussion and Analysis December 31, 2007 City of Oshkosh`s Net Assets Governmental Activities 2006 Current and other assets Capital assets Total assets Long-term liabilities outstanding Other liabilities Total liabilities Net assets: Invested in capital assets, net of related debt Restricted Unrestricted Total net assets $ 43,630,171 108,819,918 152,450,089 70,667,369 20, 770, 894 91,438,263 Business -Type Activities 2006 $ 45,528,491 183,107,867 228,636,358 113,589,584 12,162,533 125, 752,117 Total 2006 $ 89,158,662 275,627,508 381,086,447 184,256,953 32,933,427 217,190,380 46,097,367 93,805,213 139,902,580 14,982,030 - 14,982,030 67,571 9,079,028 9,011,457 $ 61,011,826 $ 102,884,241 $ 163,896,067 By far the largest portion of the City's net assets (83%) and (85%), respectively, reflects its investment in capital assets (e.g. land, buildings, machinery and equipment, infrastructure, etc.), less any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although, the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. An additional portion of the City's net assets (9%) for both years represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($14,769,702) and ($9,011,457), respectively, may be used to meet the City's ongoing obligations to citizens and creditors. 15 Management's Discussion and Analysis December 31, 2007 Change in net assets. Governmental activities increased the City's net assets by $730,018 in 2007 and $10,357,383 in 2006. Business -type activities increased the City's net assets by $10,232,811 in 2007 and by $7,862,236 in 2006. Total net assets of the City increased in 2007 by $10,962,829 and in 2006 by $18,219,619. Key elements of this change are as follows: City of Oshkosh's Change in Net Assets Governmental Business -Type Activities Activities Total 2007 2007 2007 Revenues: Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenues Property taxes Grants and contributions not restricted to specific Other Total revenues Expenses: General government Public safety Public works Health and welfare Park and recreation Transportation Community development Unclassified Interest of long-term debt Transit utility Water utility Sewer utility Other Total expenses Increase in net assets Net assets - January 1, 2007 Net assets - December 31, 2007 $ 12,528,317 $ 24,094,213 $ 36,622,530 4,710,329 3,682,269 8,392,598 - 2,301,284 2,301,284 26,035,136 13,924,251 3,214,005 60,412,038 6,218,945 22,066,233 13,897,933 915,465 8,362,968 623,311 4,175,538 416,416 3,005,211 59,682,020 730,018 61,011,826 $ 61,741,844 5,912,175 31,947,311 - 13,924,251 1,940,273 5,154,278 37,930,214 98,342,252 4,654,186 9,759,651 7,854,061 5,429,505 27,697,403 10,232,811 102,884,241 $ 113,117,052 6,218,945 22,066,233 13, 897, 933 915,465 8,362,968 623,311 4,175,538 416,416 3,005,211 4,654,186 9,759,651 7,854,061 5,429,505 87,379,423 10, 962, 829 163, 896,067 $ 174,858,896 16 Management's Discussion and Analysis December 31, 2007 City of Oshkosh's Change in Net Assets Governmental Business -Type Activities Activities Total 2006 2006 2006 Revenues: Program revenues: Charges for services $ 14,320,644 $ 22,558,179 $ 36,878,823 Operating grants and contributions 13,167,579 3,539,218 16,706,797 Capital grants and contributions - 3,999,620 3,999,620 General revenues Property taxes 24,753,415 5,293,820 30,047,235 Grants and contributions not restricted to specific 13,809,191 - 13,809,191 Other 3,751,223 74,549 3,676,674 Total revenues 69,802,052 35,316,288 105,118,340 Expenses: General government Public safety Public works Health and welfare Park and recreation Transportation Community development Unclassified Interest of long-term debt Transit utility Water utility Sewer utility Other Total expenses Increase in net assets Net assets - January 1, 2006 Net assets - December 31, 2006 5,893,337 21,557,204 13,637,723 898,430 7,763,946 589,271 5,373,570 395,766 3,335,422 59,444,669 10,357,383 50,654,443 $ 61,011,826 4,517,297 9,401,303 7,860,915 5,674,537 27,454,052 7,862,236 95,022,005 $ 102,884,241 5,893,337 21,557,204 13,637,723 898,430 7,763,946 589,271 5,373,570 395,766 3,335,422 4,517,297 9,401,303 7,860,915 5,674,537 86,898,721 18,219,619 145,676,448 $ 163,896,067 • Property taxes increased by $1,900,076 (6.3%) in 2007 and $704,848 (2.4%) in 2006. Most of this increase was directed toward debt service. Financial Analysis of the City's Funds As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. Governmental funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the City's net resources available for spending at the end of the fiscal year. 17 Management's Discussion and Analysis December 31, 2007 As of December 31, 2007 and 2006, the City's governmental funds reported combined ending fund balances of $27,752,581 and $26,173,307, an increase of $1,579,274 in 2007 and an increase of $355,764 in 2006. Approximately 35% and 33% of this amount of ($9,707,717) and ($8,514,932) constitutes unreserved fund balance, which is available for spending at the City's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed 1) for current year purchases of inventory and prepayments that benefit periods beyond the end of the current year ($175,800) for both years ended, 2) for debt service ($15,366,502 and $14,982,030), and 3) for capital project ($2,502,562 and $2,500,545), respectively. The general fund is the chief operating fund of the City. At the end of 2007 and 2006, unreserved fund balance of the general fund was $7,116,709 and $6,148,721, respectively, while total fund balance reached $7,292,509 and $6,324,521, respectively. As a measure of the general fund's liquidity, it may be useful to compare both unreserved fund balance and total fund balance to total fund expenditures. Unreserved fund balance represents 19% and 16% of total general fund expenditures, while total fund balance represents 19% and 17% of that same amount, respectively. The fund balance of the City's general fund increased by $967,988 in 2007 and increased by $1,242,829 in 2006. The debt service fund has a total fund balance of $15,366,502 and $14,982,030, respectively. Of this fund balance, $15,366,502 and $14,982,030 is reserved for restricted purposes, respectively. Reserved fund balance represents 182% and 178%, respectively, of total debt service fund expenditures. The fund balance of the debt service fund increased by $992,081 in 2007 and by $607,609 in 2006. Thirteen million, five hundred thousand ($13,500,000) of the 2005 increased resulted from the cross -over debt refunding where the funds will not be expended until 2008. Proprietary funds_ The City's proprietary funds provide the same type of information found in the City's government -wide financial statements, but in more detail. Unrestricted net assets of the proprietary funds at the end of the 2007 and 2006 amounted to $14,053,313 and $9,079,028, respectively. The total change in net assets was an increase of $10,232,811 in 2007, and an increase of $7,862,236 in 2006. Other factors concerning the finances of these funds have already been addressed in the discussion of the City's business -type activities. General Fund Budaetary Hiahliahts Generally the original budget is rarely modified. During 2007 and 2006, actual revenues exceeded budgeted revenues by $689,502 and $709,998, respectively, primarily in charges for services. Actual expenditures were less than budgeted expenditures by $87,223 in 2007 and $573,101 in 2006. Capital Asset and Debt Administration Capital assets. The City's investment in capital assets for its governmental and business -type activities as of December 31, 2007 and 2006 amounted to $294,239,442 and $291,927,785 (net of accumulated depreciation), respectively. This investment in capital assets includes land, land improvements, buildings, machinery and equipment, vehicles, public domain infrastructure (highways and bridges), and construction in progress. The City's capital assets increased by $2,311,657or 1% for 2007 and increased by $16,300,277 or 6% for 2006. 18 Management's Discussion and Analysis December 31, 2007 Major capital asset acquired or constructed during the years ended 2007 and 2006 include: • The governmental activities constructed streets in the amount of $4,094,644 and $4,067,187 purchased vehicles in the amount of $769,202 and $1,128,701 and building improvements and contents in the amount of $1,673,113 and $15,560,003, respectively. • The business activities purchased additional land and improvements to expand the TIF District in the amount of $1,976,449 and $1,686,088, and improvements to the water, sewer and storm sewer utilities in the amount of $7,234,280 and $11,395,002, respectively. City of Oshkosh's Capital Assets Governmental Business -Type Activities Activities 2007 2007 Total 2007 Land $ 14,724,629 $ 34,097,947 $ 48,822,576 Construction in progress - 11,204,485 11,204,485 Buildings and systems 31,282,357 128,384,576 159,666,933 Machinery and equipment 21,028,277 12,443,392 33,471,669 Infrastructure 41,073,779 - 41,073,779 Total $ 108,109,042 $ 186,130,400 $ 294,239,442 Land Construction in progress Buildings and systems Machinery and equipment Infrastructure Total City of Oshkosh's Capital Assets Governmental Business -Type Activities Activities 2006 2006 $ 14,287,902 $ 31,741,260 21, 540,154 41,250,602 $ 108,819,918 32,333,968 9,424,539 127,371,699 13,977,661 $ 183,107,867 Total 2006 $ 46,621,870 9,424,539 159,112,959 35, 517, 815 41,250,602 $ 291,927,785 Long-term debt. At the end of 2007 and 2006, the City had total bonded debt outstanding of $185,924,179 and $189,328,110, respectively. Of this amount, $133,080,054 and $132,445,768, respectively, comprises debt backed by the full faith and credit of the government. The remainder of the City's debt represents bonds secured solely by specified revenue sources (i.e., revenue bonds). City of Oshkosh's Outstanding Debt Governmental Business -Type Activities Activities Total 2007 2007 2007 General obligations debt: Bonds and notes $ 64,952,651 $ 68,127,403 $ 133,080,054 Total general obligation debt 64,952,651 68,127,403 133,080,054 Land contract - - - Revenue bonds - 52,844,125 52,844,125 Total $ 64,952,651 $ 120,971,528 $ 185,924,179 19 Management's Discussion and Analysis December 31, 2007 City of Oshkosh's Outstanding Debt Governmental Business -Type Activities Activities Total 2006 2006 2006 General obligations debt: Bonds and notes $ 65,223,096 $ 67,222,672 $ 132,445,768 Total general obligation debt 65,223,096 67,222,672 132,445,768 Land contract - - - Revenue bonds - 56,882,342 56,882,342 Total $ 65,223,096 $ 124,105,014 $ 189,328,110 The City's total debt decreased by $3,403,931 (1.8%) in 2007 and by $337,470 (0.2%) in 2006. During 2006, the City refinanced some of its general obligation bonds to take advantage of favorable interest rates. The result is expected to be a decrease in future debt service payments of $2,128,072. The City maintains an Aa3 rating from Moody's Investors Service for its general obligation debt. State statutes limit the amount of general obligation debt the City may issue to 5% of its total equalized valuation. The debt limitation for 2007 and 2006 for the City was $173,674,850 and $161,100,870, respectively, which is significantly in excess of the City's $133,080,054 and $132,445,768 outstanding general obligation debt. On February 14, 2008, the City issued $5,105,000 of general obligation bonds and $1,565,000 of general obligation promissory notes to finance capital improvement projects. Economic Factors and Next Year's Budgets and Rates • The economic condition and outlook of the City has remained fairly stable based on a relatively healthy mix of manufacturing, tourism, service industry and retail activities which support our tax base. • Inflationary trends in our region compare favorably to national indices. All of these factors were considered in preparing the City's budget for the 2008 fiscal year. Contacting the City's Financial Management This financial report is designed to provide a general overview of the City's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Peggy Steeno, Director of Finance, City of Oshkosh, P.O. Box 1130, Oshkosh, Wisconsin 54903-1130. 20 BASIC FINANCIAL STATEMENTS CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Net Assets December 31, 2007 Primary Government Component Units Governmental Business -type Housing Redevelopment Activities Activities Total Authority Authority ASSETS Cash and investments $ 27,599,464 $ 24,598,501 $ 52,197,965 $ 1,070,003 $ 4,924,286 Receivables Taxes 34,183 - 34,183 - - Special assessments 4,143,515 - 4,143,515 - - Accounts 3,097,938 7,301,289 10,399,227 382,733 - Internal balances 5,972,711 (5,972,711) - - - Due from other governments 277,590 1,671,108 1,948,698 - - Inventories and prepaid items 12,146 1,128,855 1,141,001 45,956 - Notes receivable 3,036,233 - 3,036,233 - - Restricted Assets - 21,072,017 21,072,017 1,203,913 642,174 Capital assets Land and construction in progress 14,724,629 45,302,432 60,027,061 2,625,881 17,720,778 Other capital assets, net of accumulated depreciation 93,384,413 140,827,968 234,212,381 7,574,762 - Notes receivable - 303,293 303,293 66,761 - Interest receivable - - - 65,700 - Deferred charges and deposits - 53,768 53,768 - - TOTAL ASSETS 152,282,822 236,286,520 388,569,342 13,035,709 23,287,238 LIABILITIES Accounts payable 3,191,288 1,340,195 4,531,483 245,914 - Accrued expenses 1,852,562 650,000 2,502,562 31,790 - Accrued interest payable 235,402 667,160 902,562 - - Intergovernmental payables 3,036,233 - 3,036,233 71,555 Deferred revenues 4,554,472 123,618 4,678,090 41,131 - Deposits 1,035,492 6,900 1,042,392 70,299 14,843 Current portion of long-term obligations 5,767,236 10,029,683 15,796,919 98,510 - Noncurrent portion of long-term obligations 70,868,293 110,351,912 181,220,205 3,519,793 6,142,967 TOTAL LIABILITIES 90,540,978 123,169,468 213,710,446 4,078,992 6,157,810 NET ASSETS Invested in capital assets, net of related debt 45,658,953 99,063,739 144,722,692 6,648,040 11,577,811 Restricted for Debt service 15,366,502 - 15,366,502 1,203,913 642,174 Unrestricted 716,389 14,053,313 14,769,702 1,104,764 4,909,443 TOTAL NET ASSETS $ 61,741,844 $ 113,117,052 $ 174,858,896 $ 8,956,717 $ 17,129,428 The notes to the basic financial statements are an integral part of this statement 21 :5 - CD O CD N 0 zzo C) CD CD J Cl) _ fb fn "'i 9 G)3 �-OUCD 7 — _ _ Dl CD fn N —(D^ 7 7 CO D) 0 ) 0 '<•< CD a 97 7 Q CC N N O 0 Q y CD )( X C 0 7 Cnd cnO: CD CD CCi y DI C t "0 O O 3 Cl CD CD -..CD Co a a CD Di y CD O O —' N ato 0 N (D CD N 0 (D N cn Cb C] (yp pl N a O C ) 0 Cl (D CD (1 CA 0) 0) IA $4 !"$4 CA O A W V 0 A CA N O (4 -+ O (4ID N A CA O 00 W O W 0) V 0) N O _� A ON) 00 N V W CAA -- C) O CA C) W O V - CA N 0) C)) CD CA W Cn M- V N N O CD N ONW A r oo i C1 -C'--. 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See Note C(4) for additional detail. Internal service funds are used by management to charge the costs of certain activities, such as risk management to individual funds. Assets and liabilities of the internal services funds of $2,751,152 are included in governmental activities in the statement of net assets. Long-term liabilities of $76,635,529 are not due and payable in the current period and are not reported in the funds. See Note C(6) for detail. Other related amounts include accrued interest payable of $235,402. Net assets of governmental activities The notes to the basic financial statements are an integral part of this statement. $ 27,752,581 108,109,042 2,751,152 (76,870,931) $ 61,741,844 24 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended December 31, 2007 Other Total Debt Governmental Governmental General Service Funds Funds Revenues Taxes $ 3,866,589 $ 15,705,026 $ 6,339,606 $ 25,911,221 Special assessments - - 1,694,690 1,694,690 Intergovernmental 16,959,447 - 1,731,207 18,690,654 Licenses and permits 1,627,303 - 82,099 1,709,402 Fines and forfeits 851,683 - - 851,683 Public charges for services 2,791,083 - 1,787,440 4,578,523 Intergovernmental charges for services 2,545,173 - - 2,545,173 Miscellaneous 1,541,635 1,385,213 1,386,659 4,313,507 Total Revenues 30,182,913 17,090,239 13,021,701 60,294,853 Expenditures Current General government 5,854,440 - - 5,854,440 Public safety 20,987,273 - 115,199 21,102,472 Public works 6,554,953 - 2,158,035 8,712,988 Health and welfare - - 915,465 915,465 Parks and recreation 1,713,922 - 5,573,880 7,287,802 Transportation 623,311 - - 623,311 Community development 1,559,577 - 2,511,195 4,070,772 Unclassified 416,416 - - 416,416 Debt service Principal - 5,470,617 - 5,470,617 Interest and fiscal charges - 2,991,930 - 2,991,930 Capital outlay - - 6,469,538 6,469,538 Total Expenditures 37,709,892 8,462,547 17,743,312 63,915,751 Excess of Revenues Over (Under) Expenditures (7,526,979) 8,627,692 (4,721,611) (3,620,898) Other Financing Sources (Uses) Long-term debt issued 30,000 154,364 5,015,808 5,200,172 Transfers in 8,464,967 - 100,000 8,564,967 Transfers out - (8,397,584) (167,383) (8,564,967) Total Other Financing Sources (Uses) 8,494,967 (8,243,220) 4,948,425 5,200,172 Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses Fund Balances - January 1 Fund Balances - December 31 967,988 384,472 6,324,521 14,982,030 226,814 1,579,274 4,866,756 26,173,307 $ 7,292,509 $ 15,366,502 $ 5,093,570 $ 27,752,581 The notes to the basic financial statements are an integral part of this statement. 25 CITY OF OSHKOSH Oshkosh, Wisconsin Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balance of Governmental Funds to the Statement of Activities Year Ended December 31, 2007 Net Change in Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the statement of activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. Capital outlay reported in governmental fund statements Depreciation expense reported in the statement of activities Amount by which capital outlays are greater than depreciation in current period Internal service funds are used by management to charge the costs of certain activities to individual funds. The net revenue of the internal service funds is reported with governmental activities. Certain employee benefits are reported in the governmental funds when amounts are paid. The statement of activities reports the value of benefits earned during the year. This year the accrual of these benefits increased by: Some capital assets acquired during the year were financed with debt. The amount of the debt is reported in the governmental funds as a source of financing. In the statement of net assets, however, debt constitute a long- term liability. The amount of debt reported in the governmental funds statement is: Repayment of principal on long-term debt is reported in the governmental funds as an expenditure, but is reported as a reduction in long-term debt in the statement of net assets and does not affect the statement of activities. The amount of long-term debt principal payments in the current year is: Interest payments on outstanding debt are reported in the governmental funds as an expenditure when paid, in the statement of activities interest is reported as it accrues. This year the accrual of interest increased by: Change in Net Assets of Governmental Activities The notes to the basic financial statements are an integral part of this statement. $ 6,536,959 (7,247,835) 1,579,274 (710,876) (32,556) (362,988) (5,200,172) 5,470,617 (13,281) $ 730,018 26 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Revenues, Expenditures and Changes in Fund Balance Budget and Actual General Fund Year Ended December 31, 2007 Budgeted Amounts Original Final Variance with Final Budget - Actual Favorable Amounts (Unfavorable) Revenues Taxes $ 3,860,572 $ 3,860,572 $ 3,866,589 $ 6,017 Intergovernmental 16,894,489 16,894,489 16,959,447 64,958 Licenses and permits 1,459,100 1,459,100 1,627,303 168,203 Fines and forfeits 908,000 908,000 851,683 (56,317) Public charges for services 2,450,050 2,450,050 2,791,083 341,033 Intergovernmental charges for services 2,629,200 2,629,200 2,545,173 (84,027) Miscellaneous 1,292,000 1,292,000 1,541,635 249,635 Total Revenues 29,493,411 29,493,411 30,182,913 689,502 Expenditures Current General government 5,472,450 5,892,008 5,854,440 37,568 Public safety 20,755,885 20,989,189 20,987,273 1,916 Public works 6,702,541 6,584,232 6,554,953 29,279 Parks and recreation 1,608,404 1,729,198 1,713,922 15,276 Transportation 611,464 623,311 623,311 - Communitydevelopment 1,535,896 1,559,577 1,559,577 - Unclassified 1,110,475 419,600 416,416 3,184 Total Expenditures 37,797,115 37,797,115 37,709,892 87,223 Excess of Revenues Over Expenditures (8,303,704) (8,303,704) (7,526,979) 776,725 Other Financing Sources: Long-term debt issued 30,000 30,000 30,000 - Transfers in 8,273,704 8,273,704 8,464,967 191,263 Transfers out - - - - Total Other Financing Sources 8,303,704 8,303,704 8,494,967 191,263 Net Change in Fund Balance Fund Balance - Beginning of Year - - 967,988 967,988 5,081,692 6,324,521 6,324,521 - Fund Balance - End of Year $ 5,081,692 $ 6,324,521 $ 7,292,509 $ 967,988 The notes to the basic financial statements are an integral part of this statement. 27 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Net Assets Proprietary Funds December 31, 2007 Enterprise Funds Other Internal Transit Water Sewer Proprietary Service Utility Utility Utility Funds Total Funds ASSETS Current Assets Cash and investments $ - $ 2,462,766 $ 5,578,996 $ 16,556,739 $ 24,598.501 $ 3,393.883 Accounts receivable 82.888 3,427,356 2,835,141 955,904 7.301.289 133,463 Due from other funds - 1,598.561 193,943 229,519 2,022,023 71,338 Due from other governments 1,671,108 - - - 1,671,108 - Inventories and prepayments 124,540 983,439 19,672 1,204 1,128,855 Total Current Assets 1,878,536 8,472,122 8,627,752 17,743,366 36,721,776 3,598,684 Noncurrent Assets Restricted assets 8,529,402 9,501,513 3,041,102 21,072,017 - Capital Assets Land and construction in progress 367,811 2,540,984 3,994,471 38,399,166 45,302,432 - Other capital assets, net of accumulated depreciation 2,359,063 71,262,064 56,695,326 10,511,515 140,827,968 - Total Capital Assets, Net 2,726,874 73,803,048 60,689,797 48,910,681 186,130,400 - Notes receivable - - - 303,293 303,293 - Interest receivable - - - - - Deferred charges and deposits - 14.908 20 38,840 53,768 - Total Noncurrent Assets - 14,908 20 342,133 357,061 TOTAL ASSETS 4,605,410 90,819.480 78,819,082 70,037,282 244,281,254 3,598,684 LIABILITIES Current Liabilities Accounts payable 221,640 541,891 366,546 210,118 1,340,195 - Accrued Expenses 1,376 787,444 128,908 399,432 1,317,160 847,532 Deposits 900 - - 6.000 6,900 - Duetootherfunds 1,292,866 1,507,762 2,785,968 2,408,138 7,994,734 - Deferred revenues 97,618 - - 26,000 123,618 - Current portion of long-term obligations 291,061 3,281,717 3,175,060 3,281,845 10,029,683 - Total Current Liabilities 1,905,461 6,118,814 6,456,482 6,331,533 20,812,290 847,532 Noncurrent Liabilities Noncurrent portion of long-term obligations 349,123 42,004,765 27,017,951 40,980,073 110,351,912 Total Noncurrent Liabilities 349,123 42,004,765 27,017,951 40,980,073 110,351,912 - TOTAL LIABILITIES 2,254,584 48,123,579 33,474,433 47,311,606 131,164,202 847,532 NET ASSETS Invested in capital assets, net of related debt 2,377,751 37,301,157 40,246,396 19,138,435 99,063,739 - Unrestricted (26,925) 5,394,744 5,098,253 3,587,241 14,053,313 2,751,152 TOTAL NETASSETS $ 2,350 826 $ 42,y95 901901 $ 45,344.649 $ 22,725,676 $ 113.117.052 $ 2.751.152 The notes to the basic financial statements are an integral part of this statement 28 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Revenues, Expenses and Changes in Fund Net Assets Proprietary Funds Year Ended December 31, 2007 rise Funds Other Internal Transit Water Sewer Proprietary Service Utility Utility Utility Funds Total Funds Operating Revenues Licenses and permits Fines, forfeitures and penalties Intergovernmental charges for services Public charges for services Other revenues Total Operating Revenues Operating Expenses Operating and maintenance Depreciation and amortization Claims and administration Total Operating Expenses Operating Income (Loss) Nonoperating Revenues (Expenses) Taxes Intergovernmental revenues Interest on investments Debt discount amortization Gain (loss) on disposal of fixed assets Contributed capital income Interest expense Total Nonoperating Revenues (Expenses) Change in Net Assets Net Assets - Beginning of Year $ - $ - $ - $ - $ - $ 75 87,294 87,294 75,491 - - 6,343,626 567,693 11,085,840 8,418,753 3,689.917 23,762,203 - 35,066 - - 209,650 244,716 2,079,099 602,759 11,085,840 8,418,753 3,986,861 24,094,213 8,498,291 4,181,925 4,921,900 4,584,753 2,781,491 16,470,069 - 452,994 3,042,865 2,049,992 296,059 5,841,910 - - - - - - 8,572,466 4,634,919 7,964,765 6,634,745 3,077,550 22,311,979 8,572,466 (4,032,160) 3,121,075 1,784,008 909,311 1,782,234 (74,175) 108,741 - - 5,803,434 5,912,175 41,619 3,465,650 - - 216,619 3,682,269 - - 520,028 708,108 391,311 1,619,447 - (11,764) (11,764) - - - - 320,826 320,826 - 85,821 460,564 296,035 1,458,864 2,301,284 - (19,267) (1,794,886) 1,219,316) (2,340,191) (5,373,660) - 3,640,945 814,294) (215,173) 5,839,099 8,450,577 41,619 (391,215) 2,306,781 1,568,835 6,748,410 10,232,811 (32,556) 2,742,041 40,389,120 43,775,814 15,977,266 102,884,241 2,783,708 Net Assets - End of Year $ 2,350,826 $A2.695,901 $ 45,344,649 $ 22,725,676 _$ 113,117,052 $ 2,751,152 The notes to the basic financial statements are an integral part of this statement. 29 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Cash Flows Proprietary Funds Year Ended December 31, 2007 Enterprise Funds Other Internal Transit Water Sewer Proprietary Service Utility Utility Utility Funds Total Funds Cash Flows from Operating Activities Cash received from customers $ 600,630 $ 9,878,710 $ 8,030,602 $ 3,781,991 $ 22,291,933 $ 8,316,876 Cash payments to suppliers and employees (4,150,595) 4,033,917 (3,788,181) (3,607,707) (15,580,400) (6,647,895) Net Cash Provided (Used) by Operating Activities (3,549,965) 5,844,793 4,242,421 174,284 6,711,533 (31,019) Cash Flows from Non -Capital Financing Activities Property taxes received 108,741 - - 5,803,434 5,912,175 41,619 Operating grants received 3,465,650 214.070 3,679,720 Net Cash Provided by Non -Capital Financing Activities 3,574,391 - - 6,017,504 9,591,895 41,619 Cash Flows from Capital and Related Financing Activities Acquisition of fixed assets - (2,434,968) (2,167,421) (2,384.982) (6,987,371) - Principal payments on long-term debt (89,223) (3,136,400) (2,942,242) (3,090,449) (9,258,314) - Interest payments on long-term debt (21,024) (1.816,687) (1,215,308) (2,261,982) (5,315,001) - Long-term debt issued - 2,414,477 3,655,491 54,860 6,124.828 - Proceeds from sale of assets - - - 532.996 532,996 - Capital grants received 85,821 - - 85,821 - Net Cash Provided (Used) by Capital and Related Financing Activities (24,426) (4,973,578) (2,669,480) (7,149,557) (14,817,041) - Cash Flows from Investing Activities Proceeds from note receivable - - - - Investment income received - 520,028 708,108 391,311 1,619,447 - Net Cash Provided by Investing Activities - 520,028 708,108 391,311 1,619,447 - Net Increase (Decrease) in Cash and Cash Equivalents - 1,391,243 2,281,049 (566,458) 3,105,834 (289,400) Cash and Cash Equivalents - Beginning of Year - 9,600,925 12,799,460 20,164,299 42,564,684 3,683,283 Cash and Cash Equivalents - End of Year $ - $ 10.992.168 $ 15,080,509 $ 19,597,841 $ 45,670.518 $ 3,393,883 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ (4,032,160) $ 3,121,075 $ 1,784,008 $ 909,311 $ 1,782,234 $ (74,175) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Depreciation 452,994 3,042,865 2,049,992 296,059 5,841,910 - Changes in assets and liabilities Accounts receivable 45,924 (545,814) (468,343) (126,815) (1,095,048) (181,415) Due from other funds (25,664) (661,316) 76,251 (26,065) (636,794) - Inventories and deferred charges (22,389) 83,507 3,941 (1,990) 63,069 - Accounts payable and accrued expenses 76,157 804,476 (264,812) (177,242) 438,579 (75,429) Due to other funds (45,257) - 1,061,384 (648,974) 367,153 - Deferred revenues and deposits 430 - (50,000) (49,570) - Net Cash Provided (Used) by Operating Activities $ (3.549,965) $ 5,844,793 $ 4,242.421 $ 174,284 $ 6,711,533 $ (331,019) The notes to the basic financial statements are an integral part of this statement. 30 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Net Assets Fiduciary Funds December 31, 2007 Agency Funds Private Property Hospital Trusts Taxes Bioterrorism ASSETS Cash and cash equivalents Taxes receivable Accounts receivable Restricted assets Total assets LIABILITIES Accounts payable Due to other governments Other liabilities Total liabilities NET ASSETS Reserved for trust agreements Total net assets $ - $ 26,495,301 $ 43,479 - 56,692,611 - 5,689 - 3,484,026 - - 3,489,715 $ 83,187,912 $ 43,479 39,831 $ - $ - - 51,056,043 43,479 - 32,131, 869 - 39,831 $ 83,187,912 $ 43,479 3,449,884 $ 3,449,884 The notes to the basic financial statements are an integral part of this statement. 31 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Changes in Net Assets Fiduciary Funds Year Ended December 31, 2007 Private Trusts ADDITIONS Interest $ 156,588 Miscellaneous 233,968 Total Additions 390,556 DEDUCTIONS Operating expenses 85,783 Change in Net Assets 304,773 Net Assets -January 1 3,145,111 Net Assets - December 31 $ 3,449,884 The notes to the basic financial statements are an integral part of this statement. 32 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Oshkosh ('the City"), Wisconsin, have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard - setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the City are described below: 1. Reporting Entity The City of Oshkosh is a municipal corporation governed by an elected seven member council. In accordance with GAAP, the basic financial statements are required to include the City (the primary government) and any separate component units that have a significant operational or financial relationship with the City. The City has identified the following component units that are required to be included in the basic financial statements in accordance with standards established by GASB Statement No. 14. Discretely presented component units: The component unit columns in the basic financial statements include the financial data of the City's component units, the Housing Authority and the Redevelopment Authority of the City of Oshkosh. They are reported in separate columns to emphasize that they are legally separate from the City. The Housing Authority's fiscal year end is June 30, and the Redevelopment Authority's fiscal year end is December 31. Complete financial statements for the Housing Authority may be obtained at the entities administrative offices: The Housing Authority of the City of Oshkosh 600 Merrit Avenue, P.O. Box 397 Oshkosh, WI 54902-0397 Other entities: The City has included in its primary government financial statements the following entities, which although they have other advisory boards and committees, are not considered separate entities with corporate powers: Oshkosh Public Library Transit Commission Business Improvement District Water Utility Certain other significant governmental entities, which provide service within the City, are governed by separate boards or commissions and are not accountable to the City. Consequently, financial information for the following entities is not included within the scope of the City's reporting entity and is not included in the City's financial statements. School District of Oshkosh Area Fox Valley VTAE District 2. Government -Wide and Fund Financial Statements The government -wide financial statements (i.e., the statement of net assets and the statement of activities) report information on all of the nonfiduciary activities of the City. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business -type activities, which rely to a significant extent on fees and charges for support. 33 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate fund financial statements are provided for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government -wide financial statements. Governmental funds include general, special revenue, debt service and capital projects funds. Proprietary funds include enterprise funds and internal service funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. All remaining governmental and enterprise funds are aggregated and reported as nonmajor funds. The City reports the following major governmental funds: GENERAL FUND This 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. DEBT SERVICE FUND This fund accounts for the resources accumulated and payments made for principal and interest on long-term general obligation debt of governmental funds. The City reports the following major enterprise funds: TRANSIT FUND This fund accounts for the operations of a bus transit system for the City of Oshkosh. Financing is provided through user fees, federal and state grants, and general property taxes. WATER UTILITY FUND This fund accounts for the construction, operation and maintenance of the City owned water facilities. SEWER UTILITY FUND This fund accounts for the construction, operation and maintenance of the city owned sewerage facilities. The City also reports the following fund types: INTERNAL SERVICE FUND This fund accounts for the financing of goods and services provide by one department to other City departments or to other governments on a cost reimbursement basis. PRIVATE TRUST FUNDS This fund accounts for the accumulation of resources for the various funds for which the City serves as trustee. 34 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 AGENCY FUND This fund accounts for the current year tax levy collectible in the subsequent year for the City and in a custodial capacity as an agent on behalf of others. 3. 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 and fiduciary fund financial statements. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenues as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Private -sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government -wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private -sector guidance for their business -type activities, and enterprise funds subject to this same limitation. The City has elected not to follow subsequent private -sector guidance. As a general rule the effect of interfund activity has been eliminated from the government -wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for services. Operating expenses for enterprise funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non -operating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources, as they are needed. 4. Assets, Liabilities and Net Assets or Equity A. Cash and Investments Cash and investments are combined on the balance sheet. Cash deposits consist of demand and time deposits with financial institutions and are carried at cost. Investments are stated at fair value. Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. For purposes of the statement of cash flows, all cash deposits and highly liquid investments (including restricted assets) with a maturity of three months or less from date of acquisition are considered to be cash equivalents. 35 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 B. Accounts Receivable Accounts receivable are recorded at gross amount with uncollectible amounts recognized under the direct write-off method. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material to the basic financial statements. C. Interfund Receivables and Payables During the course of operations, numerous transactions occur between individual funds for goods provided or services rendered. These receivables and payables are classified as "due from other funds" and "due to other funds" on the balance sheet. Noncurrent portions of the interfund receivables for the governmental funds are offset by a deferred revenue account or shown as a reservation of fund balance since they do not constitute expendable available financial resources and therefore are not available for appropriation. The amount reported on the statement of net assets for internal balances represents the residual balance outstanding between the governmental activities, business type activities and fiduciary funds. D. Inventories Inventories are recorded at cost, which approximates market, using the first -in, first -out method. Inventories consist of expendable supplies held for consumption. The cost is recorded as an expenditure at the time individual inventory items are consumed rather than when purchased. Inventories of governmental fund types in the fund financial statements are offset by fund balance reserve accounts to indicate that they do not represent spendable available financial resources. E. Prepaid Items Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid items. Prepaid items of governmental fund types in the fund financial statements are offset by fund balance reserve accounts to indicate that they do not represent spendable available financial resources. F. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business -type activities columns in the government -wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost of $500 or higher 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. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives are not capitalized. Depreciable capital assets of the City are depreciated using the straight-line method over the following estimated useful lives: Governmental Activities Years Assets Buildings and improvements Machinery and equipment Infrastructure 30-80 25-88 1-25 10-25 20-35 40-150 36 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 G. Compensated Absences The City's policy allows employees to earn one day of sick pay per month of service, accumulating to varying maximum amounts. The City's employees also are granted vacation in varying amounts based on length of service. All vacation and sick leave is accrued when incurred in the government - wide and proprietary fund financial statements. A liability for these amounts is reported in the governmental funds in the fund financial statements only if they have matured, for example, as a result of employee resignations and retirements. H. Deferred Revenue Governmental funds report deferred revenue in connection with receivables for revenues that are not considered to be available to liquidate liabilities of the current period or for resources that have been received, but not yet earned. Long-term Obligations In the government -wide financial statements, and 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. 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 on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. J. Net Assets and Fund Equity Net assets Net assets represent the difference between assets and liabilities. Net assets invested in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement for those assets. Net assets are reported as restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. The City applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net assets are available. In the fund financial statements, governmental funds report reservations of fund balance for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. K. Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. 37 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 NOTE B - STEWARDSHIP AND COMPLIANCE Budgets and Budgetary Accounting The City adopted annual Governmental Fund budgets for the General Fund, certain Special Revenue Funds and certain Debt Service Funds. These budgets are adopted in accordance with State Statutes and are prepared on a basis consistent with generally accepted accounting principles. The budgetary data presented on the Statement of Revenues, Expenditures and Changes in Fund Balances — Budget and Actual reflects the original approved budgets of the above funds and subsequent revision authorized by the City's Common Council. Flexible, annual budgets are approved for Proprietary Funds to provide for financial management. Long-term budgets are adopted for Capital Projects Funds. The following procedures are used in establishing the budgetary data reflected in the financial statements: • In early October, the Finance Director and City Manager submit to the Common Council a proposed operating budget for the fiscal year commencing the following January 1. The operating budget includes proposed expenditures and the means of financing them. • A public hearing is conducted in the Council Chambers to obtain taxpayer comments. • At the second council meeting in November, the budget is legally enacted through passage of a resolution. • The Finance Director is authorized to transfer budget amounts within departments upon City Manager approval; however, any revisions that alter the total expenditures of any fund must be approved by the Common Council. • Formal budgetary integration is employed as a management control device during the year for the General Fund, six Special Revenue Funds (Library, Museum, Cemetery, Committee on Aging, Recycling Funds and Street Lighting Funds) and the Debt Service Fund exclusive of the Cross Over Refunding and Current Refunding Debt Service Funds. • Budgetary expenditure control is exercised at the department level. • Budgeted amounts are as authorized in the original budget resolution and subsequent revisions authorized by the Common Council. • All appropriations lapse at year end. The City did not have any violation of legal or contractual provisions for the fiscal year ended December 31, 2007. 38 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 2. Excess of Expenditures Over Budget Appropriations The following expenditure accounts had actual expenditures in excess of budget appropriations for the year ended December 31, 2007 as follows: The above excess expenditures were funded using favorable revenue variances and available fund balances. Fund Function Excess Expenditures Special Revenue Aging services Community Development $ 37,482 Aging services Capital Outlay 4,074 Museum Parks and Recreation 138,243 Museum Capital Outlay 4,266 Library Capital Outlay 17,779 Library Parks and Recreation 57,808 Cemetery Parks and Recreation 2,601 NOTE C - DETAILED NOTES ON ALL FUNDS 1. Cash and Investments The City maintains various cash and investment accounts, including pooled funds that are available for use by all funds. Each fund's portion of these accounts is displayed in the financial statements as "Cash and investments." Invested cash consists of deposits and investments that are restricted by Wisconsin Statutes to the following: Time deposits; repurchase agreements; securities issued by federal, state and local governmental entities; statutorily authorized commercial paper and corporate securities; and the Wisconsin local government investment pool. The carrying amount of the City's cash and investments totaled $103,292,788 on December 31, 2007 as summarized below: Petty Cash funds Deposits with financial institutions Investments Federal agencies Money markets Mutual funds Repurchase agreements U.S. Treasury Wisconsin local government pool $ 7,850 39,907,756 635,553 728,719 188,306 29,923,566 31,868,861 32,177 $ 103,292,788 39 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Reconciliation to the basic financial statements: Basic financial statements Cash and investments Restricted cash and investments Fiduciary funds Private -purpose trust fund Agency fund $ 52,197,965 21,072,017 3,484, 026 26,538,780 $ 103,292,788 Deposits and investments of the City are subject to various risks. Presented below is a discussion of the specific risks and the City's policy related to the risk. Custodial Credit Risk Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker -dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. Wisconsin statutes require repurchase agreements to be fully collateralized by bonds or securities issued or guaranteed by the federal government or its instrumentalities. The City does not have an additional custodial credit policy. Deposits with financial institutions are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $100,000 for interest bearing accounts and $100,000 for non -interest bearing accounts. In addition, the State of Wisconsin has a State Guarantee Fund which provides a maximum of $400,000 per public depository above the amount provided by an agency of the U.S. Government. However, due to the relatively small size of the State Guarantee Fund in relation to the Fund's total coverage, total recovery of insured losses may not be available. As of December 31, 2007, $28,242,797 of the City's deposits with financial institutions was in excess of federal depository insurance limits and uncollateralized. On December 31, 2007, the City held repurchase agreement investments of $29,923,566 of which the underlying securities are held by the investment counterparty, not in the name of the City. 40 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Credit Risk Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Wisconsin statutes limit investments in securities to the top two ratings assigned by nationally recognized statistical rating organizations. Presented below is the actual rating as of year end for each investment type. Investment Type Amount Exempt From Disclosure Ratings as of Year End AAA Aa Not Rated U.S. Treasury notes 6,388 - 6,388 - - U.S. Treasury bonds 31,862,473 - 31,862,473 - - Federal agencies 635,553 - - - 635,553 Money market 728,719 - - - 728,719 Mutual funds 188,306 - - - 188,306 Repurchase agreements 29,923,566 - 29,923,566 - - Wisconsin local governement investment pool 32,177 32,177 - - - Totals 63,377,182 32,177 61,792,427 - 1,552,578 Concentration of Credit Risk The investment policy of the City contains no limitations on the amount that can be invested in any one issuer. Investments in any one issuer (other than U.S. Treasury securities, mutual funds, and external investment pools) that represent 5% or more of total City investments are as follows: Reported Issuer Investment Type Amount Goldman Sachs Repurchase agreements $ 29,923,566 Interest Rate Risk Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations. Information about the sensitivity of the fair values of the City's investments to market interest rate fluctuations is provided by the following table that shows the distribution of the City's investments by maturity: Investment Type Amount Remaining Maturity (in Months) 12 months or Less 13 to 24 Months 25 to 60 Months More Than 60 Months u.s. treasury notes U.S. Treasury bonds Federal agencies Money market Mutual funds Repurchase agreements Wisconsin local governement investment pool Totals 6,388 6,388 - - - 31,862,473 31,079,751 782,722 - 635,553 635,553 - - - 728,719 728,719 - - - 188,306 188,306 - - - 29,923,566 29,923,566 - - - 32,177 32,177 - - 63,377,182 62,594,460 782,722 - 41 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City's investments do not include investments that are highly sensitive to interest rate fluctuations. Investment in Wisconsin Local Government Investment Pool The City has investments in the Wisconsin local government investment pool of $32,177 at year-end. The Wisconsin local government investment pool (LGIP) is part of the State Investment Fund (SIF), and is managed by the State of Wisconsin Investment Board. The SIF is not registered with the Securities and Exchange Commission, but operates under the statutory authority of Wisconsin Chapter 25. The SIF reports the fair value of its underlying assets annually. Participants in the LGIP have the right to withdraw their funds in total on one day's notice. At December 31, 2007, the fair value of the City's share of the LGIP's assets was substantially equal to the carrying value. Investments in the Wisconsin Local Government Investment Pool are covered under a surety bond issued by Financial Security Assurance, Inc. The bond insures against losses arising from principal defaults on substantially all types of securities acquired by the pool. The bond provides unlimited coverage on principal losses, reduced by any FDIC, State of Wisconsin Guarantee Fund insurance, and income on the investment during the calendar quarter a loss occurs. The Housing Authority, as a component unit of the City of Oshkosh, also maintains separate cash and investment accounts as detailed below: Demand deposits At June 30, 2007, the carrying amount of the Authority's demand deposits was $800,000 and the bank balance was $800,000. Of the bank balance, $200,000 was covered by Federal depository insurance, $600,000 was covered by the Sate of Wisconsin Public Deposit Guarantee Fund and $0 was uninsured and uncollateralized. Investments At June 30, 2007, the carrying amount of the Authority's deposits was $1,437,916 and the bank balance was $1,437,916. None of this balance was covered by federal depository insurance of the State of Wisconsin Public Deposit Guarantee Fund. Restricted cash and investments At June 30, 2007, $53,249 of cash and cash equivalents are held in escrow by WHEDA and recognized as restricted cash and investments in the accompanying basic financial statements. The Redevelopment Authority, as a component unit of the City of Oshkosh, also maintains separate cash accounts. At December 31, 2007, the carrying amount of the Authority's deposits was $2,909,083 and the bank balance was $2,909,083. Of the bank balance, $100,000 was covered by federal depository insurance, $400,000 was covered by the State of Wisconsin Public Deposit Guarantee Fund, and $2,509,083 was uninsured and uncollateralized. On December 31, 2007, the Authority held U. S. Treasury Obligations of $2,657,378. These obligations carry a credit rating of AAA and wil! mature within 12 months. 2. Restricted Assets Restricted assets on December 31, 2007 totaled $21,072,017 and consisted entirely of cash and investments. 42 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 3. Property Taxes Property taxes are recorded in the year levied as receivables and deferred revenues in the Agency Funds. They are recognized in the appropriate funds as revenues in the succeeding year when services financed by the levy are provided. In addition to property taxes for the municipality, taxes are collected for and remitted to the State and County governments as well as the local and vocational school districts. Taxes for all State and local governmental units billed in the current year for the succeeding year are reflected as due to other governments on the accompanying balance sheet. Taxes are levied in December on the assessed value as of the prior January 1. Property tax calendar — 2007 tax roll: Lien date and levy date Tax bills mailed Payment in full, or: First installment due Second installment due Third installment due Fourth installment due Personal property taxes in full Tax settlements: Initial settlement Second, third and fourth settlement Final settlement Tax deed by County -- 2007 delinquent real estate taxes December 1, 2007 December 1, 2007 January 31, 2008 March 31, 2008 May 31, 2008 July 31, 2008 January 31, 2008 January 15, 2008 20 days after the collection date August 20, 2008 October 1, 2011 Property Tax Levy Limit Wisconsin Act 25, effective July 27, 2005, imposes a limit on the property tax levies for all Wisconsin cities, villages, towns and counties for a two-year period. Wisconsin State Budget bill SB40 continues the limit on property tax levies through 2009. The budget bill limits the increase in the maximum allowable tax levy to the greater of the percentage change in the City's January 1 equalized value as a result of net new construction or 3.86% in the 2008 budget and 2.0% in the 2009 budget. The actual limit for the City for the 2008 budget was 2.572%. The levy limit is applied to both operations and debt service. However, the Act allows the limit to be increased for debt service authorized prior to July 1, 2005 and in certain other situations. 43 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 4. Capital Assets Capital asset activity for the year ended December 31, 2007 was as follows: Primary Government Beginning Ending Balance Increases Decreases Balance Governmental activities: Capital assets not being depreciated Land $ 14,287,902 $ 436,727 $ - $ 14,724,629 Construction in progress - - - - Total capital assets not being depreciated 14,287,902 436,727 - 14,724,629 Capital assets being depreciated Buildings and systems 38,839,042 306,884 - 39,145,926 Infrastructures 75,668,579 4,094,644 3,456,084 76,307,139 Machinery and equipment 40,534,419 1,698,704 679,963 41,553,160 Total assets being depreciated 155,042,040 6,100,232 4,136,047 157,006,225 Less accumulated depreciation for: Buildings and systems 7,097,782 765,787 - 7,863,569 Infrastructures 34,417,977 4,271,467 3,456,084 35,233,360 Machinery and equipment 18,994,265 2,210,581 679,963 20,524,883 Total accumulated depreciation 60,510,024 7,247,835 4,136,047 63,621,812 Total capital assets being depreciated, net 94,532,016 (1,147,603) - 93,384,413 Governmental activities capital assets, net $108,819,918 $ (710,876) $ - $108,109,042 Depreciation expense was charged to functions of the primary government as follows: Governmental activities: General government $ 302,978 Public safety 770,889 Public works 5,110,000 Parks and recreation 1,025,857 Community development 38,111 Total depreciation expense - governmental activities $ 7,247,835 44 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Primary Government Beginning Ending Balance Increases Decreases Balance Business -type activities: Capital assets not being depreciated Land $ 32,333,968 $ 1,976,449 $ 212,470 $ 34,097,947 Construction in progress 9,424,539 1,779,946 - 11,204,485 Total capital assets not being depreciated 41,758,507 3,756,395 212,470 45,302,432 Capital assets being depreciated Buildings and systems 165,582,665 5,205,304 637,308 170,150,661 Machinery and equipment 35,804,511 249,031 - 36,053,542 Total assets being depreciated 201,387,176 5,454,334 637,308 206,204,202 Less accumulated depreciation for: Buildings and systems 38,210,966 4,192,426 637,308 41,766,084 Machinery and equipment 21,826,850 1,783,300 - 23,610,150 Total accumulated depreciation 60,037,816 5,975,727 637,308 65,376,235 Total capital assets being depreciated, net 141,349,360 (521,392) - 140,827,968 Business -type activities capital assets, net $ 183,107,867 $ 3,235,003 $ 212,470 $ 186,130,400 Depreciation expense was charged to functions of the primary government as follows Business -type activities: Transit utility $ 452,994 Water utility 3,042,865 Sewer utility 2,049,992 Other 296,059 Total depreciation expense - business -type activities $ 5,841,910 45 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 5. Notes receivable Notes receivable of $3,036,233 in the Capital Projects Fund represents noninterest bearing loans made to City residents as part of the City's participation in the Community Block Grant Program for residential rehabilitation. These notes are payable to the City at the time the property is sold or at the time the property is no longer occupied by the owner and is due to the funding agency upon termination of the program. 6. Long-term Debt The following is a summary of changes in long-term obligations of the City for the year ended December 31, 2007: Beginning Ending Due Within Balance Additions Reductions Balance One Year Governmental activities: General obligation bonds and notes $ 65,223,096 $ 5,200.172 $ 5,470,617 $ 64,952.651 $ 5,364,236 Total bonds and notes payable 65,223,096 5,200,172 5,470,617 64,952,651 5.364,236 Other liabilities Unused vacation and sick leave credits 2,548,532 112,895 - 2,661,427 - Unfunded pension liability 8,771,358 652,824 402,731 9,021,451 403,000 Total other liabilities 11,319,890 765,719 402,731 11,682,878 403,000 Governmental activities long-term liabilities $ 76,542,986 $ 5,965,891 $ 5,873,348 $ 76,635,529 $ 5,767,236 Business -type activities: Bonds payable General obligation debt $ 67,222,672 $ 6,124,628 $ 5,220,097 $ 68,127,403 $ 5,438,538 Revenue bond 56,882,342 - 4,038,217 52,844,125 4,100,210 124,105,014 6.124,828 9,258,314 120,971,528 9,538,748 Less deferred amount on refundings (1,509,872) (195,969) (1,313,903) Total bonds and notes payable 122,595,142 6,124,828 9,062,345 119,657,625 9,538,748 Other liabilities Unused vacation and sick leave credits 730,396 495,037 501,463 723,970 490.935 Business -type activities long-term liabilities $ 123,325,538 $ 6,619,865 $ 9,563,808 $ 120.381,595 $ 10,029,683 Total interest paid during the year on long-term debt totaled $7,161,062. 46 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 General Obligation Debt General obligation debt currently outstanding is detailed as follows Balance outstanding Principal Interest Original December 31, Type Date of Issue Interest rate payable payable amount 2007 Refunding bonds: 12/1/1997 6.25-6.50 11/1/98 -06 511 - 11/1 955.000 $ 100,000 7/15/2003 2.00-5.00 3/15104 - 23 6/15 -12115 8,615,000 6,175,000 7/15/2003 2-00-5.00 3/15/04 -21 6/15 - 12115 1,050,000 690,000 9/1/2005 3.75-4.125 12/1/06-20 611 - 12/1 18.335.000 16,825,000 12/28/2006 4.00 12/1/07 -14 611 - 1211 11.865,000 9,360,000 Corporate purpose bonds: 3/1/1998 4.55- 5.10 12/1/99-17 611 - 12/1 3.975,000 2,940,000 3/1/1999 4.00-4.80 12/1/99 - 16 6/1 - 1211 4,540,000 2,620,000 3/1/1999 4.10-5.00 12/1/00-18 611 - 1211 3,580,000 2,190,000 3/1/2000 5.78 12/1/02-19 6/1 - 12/1 8,305,000 6,390,000 3/1/2001 4.20-5.10 12/1/03-20 6/1 - 1211 6,390,000 5,140,000 3/1/2002 4.70-5.05 12/1/03-21 611 - 12/1 11,225,000 9,540,000 3/1/2002 4.00- 6.80 12/1/03-21 611 - 12/1 7,580,000 6,525,000 2/1/2003 2.50-5.00 12/1/05.22 6/1 - 12/1 11,675,000 10,260,000 2/112003 3.25- 6.00 1211/05-22 6/1 -12/1 1,420,000 1.260,000 3/1/2004 3.00- 5.75 12/1/05-23 6/1 - 12/1 6,480,000 5,890,000 2/8/2005 3.25-4.50 12/1/06-24 611 - 12/1 7,395,000 6,840,000 3/1/2006 4.0-4.5 1211107-25 611 - 12/1 9,265,000 8,940,000 3/1/2006 5.15-5.40 1211/07-25 611 - 12/1 1,995,000 1,930.000 3/1/2007 4.0-5.0 12/1/08-26 611 - 12/1 7,950,000 7,950,000 Promissory notes: 3/1/1999 3.80-4.75 12/01/00-08 611 - 1211 2,820,000 460,000 3/1/2000 5.34 12/01101 - 09 6/1 - 1211 2.210,000 605,000 1011/20004.84 12/01/01 - 09 6/1 - 1211 1,500,000 1,140,000 3/1/2001 4.00-5.00 12/01/02-10 6/1 -1211 2,110,000 830,000 3/1/2002 4.78 12/1/03-11 6/1 - 1211 2,260,000 1,155,000 5115120025.00 3/15/03-22 3115 1,012,000 836,360 211/2003 2.13-3.80 12/1/04-12 6/1 - 1211 2,615,000 1,590,000 3119120035.00 3115104-23 3/15 375,000 326,134 7/2/2003 5.00 3115/04-23 3115 1,365,720 1,170,866 9/15/2003 2.00- 3.63 12/1/04-10 611 - 12/1 4,380,000 1,120,000 9/24/20035.00 3/15/05-23 3/15 226,000 207,231 3/1/2004 2.00-4.001211/2005-13 6/1 - 12/1 1,565,000 1,115,000 11/23/2004 5.00 3/15/06-24 3115 1,200,000 1,135,751 1217/20045.00 3/15106-24 3115 99,000 93,531 9/15120045.00 3/15/06-24 3/15 100.000 95,487 2/8/2005 3.00-3,50 12/1/06-14 611 -12/1 2,540,000 2,035,000 5/31/20055.00 3/15/07-25 3115 200,000 185,707 12/20/2005 4.50 3/15107-25 3/15 1,163,000 1,134,220 12/20/2005 4.50 3/15/07-25 3115 656,000 639,767 3/1/2006 3.65-4.0 12/1/07-15 611 -1211 2,500,000 2,265,000 3/1/2007 4.00 12/1/08-16 611 -12/1 3,375,000 3,375,000 133,080,054 68,127,403 Less amounts related to Enterprise Fund $ 64,952,651 47 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Enterprise Fund — Revenue Bonds The city has issued Revenue Bonds as detailed below. These bonds are considered special obligations of the City payable solely from net revenues of the respective Utility's Systems and do not constitute debt which the faith and credit or taxing powers of the City are pledged. In accordance with the resolutions which authorized the issuance of the debt issues, the City covenanted with the bondholders to, among other things, faithfully and punctually perform all duties with reference to the respective Utilities required by the Constitution and Statutes of the State of Wisconsin, including the making and collecting of reasonable and sufficient rates lawfully established for services rendered by the respective Utilities, and to segregate the revenues of the respective Utilities and apply them to the respective funds described in the authorizing Resolution. In addition, the borrowing resolution included restrictive investment provisions requiring fully insured or collateralized investments. Balance Year outstanding of Interest Principal Interest Original December 31, Type Issue Rate payable payable amount 2007 Sewerage System Revenue Bonds 1993 & 1994 3.84 5101194 - 12 5/1 & 11/1 2,881,401 $ 972.878 Sewerage System Revenue Bonds 1995 to 1997 3.21 5/01/96 -15 511 & 1111 17,631,411 8,436,438 Water Safe Drinking Revenue Bond 1998 2.64 5101/99 -19 5/1 & 1111 11,913,672 7,603,446 Sewerage System Revenue Clean Water 1999 2.64 5/01/00-19 511 & 11/1 3,025,930 2,108,017 Water Safe Drinking Revenue Bond 2000 2.97 5101101 - 19 511 & 11/1 13.636.364 9,468,086 Water Safe Drinking Revenue Bond 2001 2.75 5101/02 -21 5/1 & 11/1 3,483,913 2,629,081 Water Utility Revenue Refunding Bonds 2003 2.50- 3.90 1/01105 -12 1/1 & 7/1 2,065,000 895,000 Water Utility Revenue Bond 2004 2.396 5/01105 -24 511 & 1111 1,989,231 2,996,179 Oshkosh Utility Revenue Bond 2004 2.40-5.20 01/01/05 - 11 111 & 711 2,065,000 930,000 Storm Water Revenue Bond 2005 3.50 - 4.625 5101/06 - 25 5/1 & 11/1 4,820,000 4,475,000 Water Utility Revenue Bond 2006 4.0-4.5 1/01/07-26 1/1 & 7/1 12,705,000 12,330,000 $ 52,844,125 48 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 A summary of the type and individual Enterprise Funds debt is presented below: Balance Balance December 31, December 31, 2006 Additions Payments 2007 General obligation debt $ 67,222,672 $ 6,124,828 $ 5,220,097 $ 68,127,403 Revenue bond 56,882,342 - 4,0.38,217 52,844,125 Total $ 124,105,014 $ 6,124,828 $ 9,258,314 $ 120,971,528 Balance Balance December 31, December 31, 2006 Additions Payments 2007 Enterprises Funds: Sewer Utility $ 29,436,520 $ 3,655,491 $ 2,942,242 $ 30,149,769 Water Utility 46,393,306 2,414,477 3,136,400 45,671,383 Transit Utility 530,850 - 89,223 441,627 Parking Utility 430,087 - 45,000 385,087 Industrial Park 1,459,259 - 226,899 1,232,360 TIF Districts 34,176,599 - 2,053,953 32,122,646 Golf course 1,205,000 25,000 65,000 1,165,000 Oshkosh Redevelopment 1,215,000 - 285,000 930,000 Storm Water 9,258,393 29,860 414,597 8,873,656 Total 124,105,014 $ 6,124,828 $ 9,258,314 120,971,528 Less: Current portion (9,258,315) (9,538,748) Unamortized expense (1,509,872) (1,313,903) Long-term debt, net $ 113,336,827 $ 110,118,877 49 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Annual principal and interest maturities of the outstanding debt on December 31, 2007 are detailed below: Total Outstanding Principal Interest Total December 31, $ 185,924,179 2008 $ 28,539,275 $ 7,061,114 $ 35,600,389 157,384,904 2009 15,781,040 6,317,108 22,098,148 141,603,864 2010 14,305,338 5,725,008 20,030,346 127,298,526 2011 13,238,011 5,188,624 18,426,635 114, 060,515 2012 12,613,535 4,678,821 17,292,356 101,446,980 2013-2017 52,381,488 16,688,079 69,069,567 49,065,492 2018-2022 38,091,848 6,937,499 45,029,347 10,973,644 2023-2026 10,973,644 934,367 11,908,011 - $ 185,924,179 $ 53,530,620 $ 239,454,799 For the governmental activities, the other long-term liabilities are generally liquidated by the general fund. Legal Margin for New Debt The City's legal margin for creation of additional general obligation debt on December 31, 2007 is as follows: Equalized valuation $ 3,473,497,000 Margin of indebtedness: 5% of equalized valuation $ 173,674,850 Less outstanding general obligation debt $ 133,080,054 Deduct Debt Service Funds available for debt retirement 15,366,502 117,713,552 Margin of indebtedness $ 55,961,298 The City has approved the issuance of industrial revenue bonds (IRB) for the benefit of private business enterprises. IRBs are secured by mortgages or revenue agreements on the associated projects and do not constitute indebtedness of the City. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. The amount of IRBs outstanding at the end of the year is maintained by the individual private business enterprises and the lending institutions. 50 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Component Unit Long-term Debt Information relating to the outstanding long-term debt is as follows: Housino Authorit Balance Date of Interest Maturity Original Outstanding Type issue rate date amount June 30, 2007 First mortgage notes payable: 12/1/2006 Variable 1/1/2026 $ 3,285,000 $ 3,285,000 12/1/1978 6.97% 1/1/2019 133,926 6.71% 87,205 5.84% 53,262 Wisconsin Housing Partnership Loan 7/15/1988 0.00% 1/1/2018 14,710 14,710 8/1/1990 0.00% 9/1/2010 15,000 15,000 WHEDA WRAP Loan 10/1/1995 0.00% 10/1/2015 29,200 29,200 $ 3,618,303 Annual principal maturities of the outstanding debt on June 30, 2007 are detailed below: Year ending June 30, 2008 2009 2010 2011 2012 Thereafter $ 98,510 143,243 113,027 103,976 109,912 3,049,635 $ 3,618,303 51 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Redevelopment Authority Type Taxable redevelopment lease revenue bonds Blance Original outstanding Date of Issue Interest rate Maturity date amount 12/31/07 6/20/2006 6.25% 6/20/2031 $ 6,360,000 Less deferred charges Annual principal maturities of the outstanding debt on December 31, 2007 are detailed below: Year endinl December 30, 2008-2024 Thereafter 7. Interfund Balances and Activity Interfund receivables and payables at December 31, 2007 were as follows: $ 6,360,000 (217,033) $ 6.142.967 $ 6,360,000 -._.__ S 6.360,000 Net Due to Other Due From Due To Funds on Statement Other Funds Other Funds of Activities General fund $ 6,550,398 $ 861,818 $ 5,688,580 Capital projects fund 3,556,173 3,718,040 (161,867) Debt service fund 182,235 - 182,235 Special revenue fund 227,052 34,627 192,425 Internal service fund 71,338 - 71,338 Total governmental activities 10,587,196 4,614,485 5,972,711 Parking utility fund 43,242 164,669 (121,427) Water utility fund 1,598,561 1,507,762 90,799 Sewer utility fund 193,943 2,785,968 (2,592,025) Storm water utility 186,277 787,567 (601,290) Transit utility fund - 1,292,866 (1,292,866) Other enterprise funds - 1,455,902 (1,455,902) Total business -type activities 2,022,023 7,994,734 (5,972,711) Totals $ 12,609,219 $ 12,609,219 $ - Transfers within the reporting entity are substantially for the purposes of subsidizing operating functions, funding capital acquisitions or maintaining debt service on a routine basis. Resources are accumulated in a fund to support and simplify the administration of various projects. 52 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 The government -wide statement of activities eliminates as reported within the segregated governmental and business -type activities columns. Only transfers between the two columns appear in this statement. The following schedule reports transfers within the reporting entity: Transfer to Transfers from Governmental Activities Business -type General Debt Service Other Activities Total Governmental activities: General fund $ - $ - $ - $ - $ Debt service fund 8,397,584 - - - 8,397,584 Other funds 67,383 - 100,000 - 167,383 Business -type activities: - - - - - Total transfers to: $ 8,464,967 $ - $ 100,000 $ - $ 8,564,967 8. Fund Equity Government Statements Equity is classified as net assets and displayed in three components: a. Invested in capital assets, net of related debt - Amount of capital assets, net of accumulated depreciation, less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets. b. Restricted net assets - Amount of net assets that are subject to restrictions that are imposed by 1) external groups, such as creditors, grantors, contributors or laws or regulations of other governments or 2) law through constitutional provisions or enabling legislation. c. Unrestricted net assets - Net assets that are neither classified as restricted nor as invested in capital assets, net of related debt. Net assets of the governmental activities reported on the government -wide statement of net assets at December 31, 2007 include the following: Invested in capital assets, net of related debt Capital assets, net $ 108,109,042 Less: related long-term debt outstanding 64,952,651 Plus: Unused borrowed funds 2,502,562 Total Invested in Capital Assets, Net of Related Debt 45,658,953 Restricted Debt service 15,366,502 Unrestricted 716,389 Total Governmental Activities Net Assets $ 61,741,844 53 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Fund Statements In the fund financial statements, portions of governmental fund balances are reserved and not available for appropriation or are legally restricted for use for a specific purpose. At December 31, 2007, fund balance was reserved as follows: General Funds Reserved for inventories and prepaids $ 175,800 Debt Service Fund Reserved for debt retirement $ 15,366,502 Other Governmental Funds Reserved for capital projects $ 2,502,562 NOTE D - OTHER INFORMATION Retirement Commitments All eligible City employees participate in the Wisconsin Retirement System (WRS), a cost -sharing multiple -employer defined benefit, public employee retirement system. All permanent employees expected to work at least 600 hours a year (440 hours for teachers) are eligible to participate in the WRS. Covered employees in the General/Teacher/Educational Support Personnel category are required by statute to contribute 6.0% of their salary (3.0% for Executives and Elected Officials, 8.0% for Protective Occupations with Social Security, and 3.4% for Protective Occupations without Social Security) to the plan. Employers may make these contributions to the plan on behalf of employees. Employers are required to contribute an actuarially determined amount necessary to fund the remaining projected cost of future benefits. The payroll for City employees covered by the WRS for the year ended December 31, 2007 was $29.1 million; the employer's total payroll was $31.3 million. The total required contribution for the year ended December 31, 2007 was $4.2 million, which consisted of $2.5 million, or 8.0% of covered payroll from the employer and $1.7 million or 5.2% of covered payroll from employees. The required contribution for employees for the year ended December 31, 2007 was financed by the City. Total contributions for the years ending December 31, 2006 and 2005 were $4.2 million and $4.1 million, respectively, equal to the required contributions for each year. Employees who retire at or after age 65 (62 for elected officials and 54 for protective occupation employees with less than 25 years of service, 53 for protective occupation employees with more than 25 years of service) are entitled to receive a retirement benefit. Employees may retire at age 55 (50 for protective occupation employees) and receive actuarially reduced benefits. The factors influencing the benefit are: (1) final average earnings, (2) years of creditable service, and (3) a formula factor. Final average earnings are the average of the employee's three highest year's earnings. Employees terminating covered employment and submitting application before becoming eligible for a retirement benefit may withdraw their contributions and, by doing so, forfeit all rights to any subsequent benefit. For employees beginning participation on or after January 1, 1990 and no longer actively employed on or after April 24, 1998, creditable service in each of five years is required for eligibility for a retirement annuity. Participants employed prior to 1990 or after April 24, 1998 are immediately vested. The WRS also provides death and disability benefits for employees. Eligibility and the amount of all benefits are determined under Chapter 40 of Wisconsin Statutes. The WRS issues an annual financial report, which may be obtained by writing to the Department of Employee Trust Funds, P.O. Box 7931, y"adison, W1 53707-7931. 54 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 Unfunded Pension Liability The City's unfunded pension liability of $9.0 million on December 31, 2007 is an actuarially computed liability by the Wisconsin Retirement System (WRS) resulting from increases in employee pension benefits that exceeded actual prior years' contributions by the City to the WRS. The liability was originally calculated by the WRS as of January 1, 1990. Since that time, the City has been making additional monthly payments to the WRS in order to amortize the liability over a 40 year period. In addition, the City is charged 7.8% interest per year on the unpaid balance. As a result, the outstanding balance of the liability may increase annually if payments made by the City to the WRS are less than the interest charged. The WRS's 40 year amortization schedule from 1990 anticipates that the unfunded pension liability will not be reduced annually for approximately the first 20 years of the schedule. 3. Other Post Retirement Benefits The City currently provides contributions to the Wisconsin Retirement Fund for employees formerly covered under the City sponsored and administered Police — Fire pension fund. In accordance with the statute terminating the pension funds, the City chose a "pay-as-you-go" basis for pension contributions in which payments are made to the Wisconsin Retirement Fund as the benefits become due and payable to the participants of the old plan. The total expense for 2007 was $140,655. The total estimated future cost to the City of this plan as of December 31, 2007 is not determinable. The City provides certain health care benefits for retired police supervisory employees. These employees may become eligible for those benefits if they reach normal retirement age while working for the City. The cost of retiree health care benefits is financed on a pay-as-you-go basis. This benefit was a recently negotiated contract provision; consequently, no costs were incurred for this benefit in 2007. 4. Risk Management The City is exposed to various risks of loss related to torts; theft of, damage to and destruction of assets; errors and omissions; and natural disasters for which the government carries commercial insurance. The City completes an annual review of its insurance coverage to ensure adequate coverage. Contingencies A. The City participates in a number of federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors or their representatives. Accordingly, the City's compliance with applicable grant requirements will be established at some future date. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the City expects such amounts, if any, to be immaterial. B. From time to time, the City is party to other various pending claims and legal proceedings. Although the outcome of such matters cannot be forecast with certainty, it is the opinion of management and legal counsel that the likelihood is remote that any such claims or proceedings will have a material adverse effect on the City's financial position or results of operations. C. On February 14, 2008, the City issued $5,105,000 million of general obligation corporate purpose bonds and $1,565,000 million of general obligation promissory notes to finance certain improvements within the City's 2008 capital improvement program. The bonds mature December 1, 2027 and the notes mature December 1, 2017. 6. Self -insured medical care coverage plan The City maintains a self -insured medical care coverage plan for its employees. The City has established the Hospital Insurance Fund (an Internal Service Fund) to account for the financing of its uninsured risked of loss. Under this program, the Hospital Insurance Fund provides coverage up to a maximum of $75,000 per contract. The City purchases commercial insurance for claims in excess of coverage provided by the Fund. 55 CITY OF OSHKOSH OSHKOSH, WISCONSIN Notes to Basic Financial Statements December 31, 2007 All funds of the City participate in the program and are charged amounts needed to pay prior — and current — year claims and to establish a reserve for future insurance costs. That reserve was $1,451,974 at December 31, 2007 and is reported as the retained earnings balance of the Internal Service Fund. The claims liability of $800,000, reported in the Fund at December 31, 2007, is based on the requirements of Governmental Accounting Standard Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Funds' claims liability amount in 2007 were: Beginning of fiscal Year liability $800,000 Current year claims And changes in Estimates $8,057,465 7. Deferred compensation plan Claim payments $8,057,465 Balance at fiscal year End $800,000 The City of Oshkosh offers its employees a deferred compensation plan created in accordance with Internal Revenue Code Section 457. The plan, available to all City employees, permits them to defer a portion of their salary until future years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. All amounts of compensation deferred under the plan, all property and rights purchased with these amounts, and all income attributable to those amounts, property, or rights are solely the property and rights of the participants and beneficiaries. The present market values are $25,735,122 and are not recognized as an asset or liability of the City. 56 Z b -4 Z Z Z --t 0 0 0 0 0 O m 0 CD CD CD x w m m 'D a y v m -D a m m 4m»l N N » w O a ' O w fl: h "mO °: .S•n' o.!• n 3 8 a '�n N 41 Pi a a ^ N C O w 0 m m N m 3 tt+CD w CDN O N 00 N m a N .N ^ NO 0 N Am . g m 3 3 O 3 a a CD S a o a 3 CD P_ N N 4, W W A O) -. 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V 0 A O N O) V CC 0 CC W0) O CC V m 00 N CD NJ MN) N N O A N W CC ) - N C J - CC V co W CO c NJ W CO -4 A 0) — + t0 th A A 0 CO W C] z 0 NJ CO � (7 `CC A O O1 T m 0 ci 3 D = I O Wm x O Z OZ C - C7) 0 O co z z z c to 0 57 OTHER SUPPLEMENTAL INFORMATION CITY OF OSHKOSH Oshkosh, Wisconsin Combining Balance Sheet Nonmajor Governmental Funds December 31, 2007 Total Special Capital Nonmajor Revenue Projects Governmental Funds Funds Funds ASSETS Cash and investments $ 2,662,539 $ 4,377,714 $ 7,040,253 Receivables Special assessment - 4,143,515 4,143,515 Accounts 116,110 917,492 1,033,602 Due from other funds 227,052 3,556,173 3,783,225 Due from other governments - 277,590 277,590 Notes receivable - 3,036,233 3,036,233 TOTAL ASSETS $ 3,005,701 $ 16,308,717 $ 19,314,418 LIABILITIES AND FUND BALANCES Liabilities Accounts payable $ 370,066 $ 1,496,698 $ 1,866,764 Deferred revenues - 4,532,939 4,532,939 Deposits 10,000 1,022,245 1,032,245 Due to other funds 34,627 3,718,040 3,752,667 Due to other governments - 3,036,233 3,036,233 Total Liabilites 414,693 13,806,155 14,220,848 Fund Balances Reserved for . Construction of assets - 2,502,562 2,502,562 Unreserved Undesignated, reported in Special revenue funds 2,591,008 - 2,591,008 Total Fund Balances 2,591,008 2,502,562 5,093,570 TOTAL LIABILITIES AND FUND BALANCES $ 3,005,701 $ 16,308,717 $ 19,314,418 W CITY OF OSHKOSH Oshkosh, Wisconsin Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Governmental Funds Year Ended December 31, 2007 Total Special Capital Nonmajor Revenue Project Governmental Funds Funds Funds Revenues Taxes $ 6,339,606 $ - $ 6,339,606 Special assessments - 1,694,690 1,694,690 Intergovernmental 844,588 886,619 1,731,207 Licenses and permits 82,099 - 82,099 Public charges for services 1,678,943 108,497 1,787,440 Miscellaneous 1,135,182 251,477 1,386,659 Total Revenues 10,080,418 2,941,283 13,021,701 Expenditures Current Public safety 115,199 - 115,199 Public works 2,158,035 - 2,158,035 Health and welfare 915,465 - 915,465 Parks and recreation 5,573,880 - 5,573,880 Community development 944,376 1,566,819 2,511,195 Capital outlay 81,283 6,388,255 6,469,538 Total Expenditures 9,788,238 7,955,074 17,743,312 Excess of Revenues Over (Under) Expenditures 292,180 (5,013,791) (4,721,611) Other Financing Sources (Uses) Long-term debt issued - 5,015,808 5,015,808 Operating transfers in 100,000 - 100,000 Operating transfers out (167,383) - (167,383) Total Other Financing Sources (Uses) (67,383) 5,015,808 4,948,425 Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 224,797 2,017 226,814 Fund Balances - Beginning of Year 2,366,211 2,500,545 4,866,756 Fund Balances - End of Year $ 2,591,008 $ 2,502,562 $ 5,093,570 59 Z r D •CC i D co p -� <> 0 o c m O _ o c m Y m "co Do oc oamam0 -� Dom7o m (CD r oc c�0 m;fA zn fli d 3 m o y 2 r `� D �' N N d obi ' ry m m J VS D O i C Q O 2 a o 3O d Q m G A > W 0 r3. r a a N _ m A N C1'dro d Dn H a CCD< fG �. n m y (Na d n< N RO! m 7 a, = r 3 7 y ro m a• m v w o" m v) D 'n K• a y N a 3 D d 7 N A a N N Q^ <D <fl N N n N N N (» ry t C y 0 N V Z N O 3 O cD a 7 7 0 0 D N g N A O w a N a w C 3 y O 0 N CD N LL C) N N N 0 O. m Q�pp <O O) n A c0 In c0 co <n -� A A . 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O C -n 0 D 4 V N 62 CITY OF OSHKOSH Oshkosh, Wisconsin Combining Statement of Net Assets Internal Service Funds December 31, 2007 Hospital Police Fire Workman's Insurance Pension Pension Compensation Total ASSETS Current Assets Cash and investments $ 2,178,015 $ 774,100 $ 269,898 $ 171,870 $ 3,393,883 Accounts receivable 121,272 - - 12,191 133,463 Due from other funds - - - 71,338 71,338 TOTAL ASSETS 2,299,287 774,100 269,898 255,399 3,598,684 LIABILITIES Current Liabilities Accounts payable - - - - - Accrued Expenses 847,313 - - 219 847,532 Due to other funds - - - - - TOTAL LIABILITIES 847,313 - - 219 847,532 NET ASSETS Unrestricted 1,451,974 774,100 269,898 255,180 2,751,152 TOTAL NET ASSETS $ 1,451,974 $ 774,100 $ 269,898 $ 255,180 $ 2,751,152 63 CITY OF OSHKOSH Oshkosh, Wisconsin Combining Statement of Revenues, Expenses and Changes in Fund Net Assets Internal Service Funds Year Ended December 31, 2007 Hospital Police Fire Workman's Insurance Pension Pension Compensation Total Operating Revenues Licenses and permits $ - $ 75 $ - $ - $ 75 Fines, forfeitures and penalties - 75,491 - - 75,491 Intergovernmental charges for services 6,227,945 - 70,030 45,651 6,343,626 Other revenues 1,494,417 37,018 11,144 536,520 2,079,099 Total Operating Revenues 7,722,362 112,584 81,174 582,171 8,498,291 Operating Expenses Claims and administration 8,057,464 72,102 68,553 374,347 8,572,466 Total Operating Expenses 8,057,464 72,102 68,553 374,347 8,572,466 Operating Income (Loss) (335,102) 40,482 12,621 207,824 (74,175) Nonoperating Revenues (Expenses) Taxes - - - 41,619 41,619 Change in Net Assets (335,102) 40,482 12,621 249,443 (32,556) Net Assets - Beginning of Year 1,787,076 733,618 257,277 5,737 2,783,708 Net Assets - End of Year $ 1,451,974 $ 774,100 $ 269,898 $ 2,751,-152 $ 255,180 64 CITY OF OSHKOSH Oshkosh, Wisconsin Statement of Cash Flows Internal Service Funds Year Ended December 31. 2007 Cash Flows from Operating Activities Cash received from customers Cash payments to suppliers and employees Net Cash Provided (Used) by Operating Activities Cash Flows from Non -Capital Financing Activities Property taxes received Net Cash Provided by Non -Capital Financing Activities Net Increase in Cash and Cash Equivalents Cash and Cash Equivalents - Beginning of Year Cash and Cash Equivalents - End of Year Hospital Police Fire Workman's Insurance Pension Pension Compensation Total $ 7,601,090 $ 112,584 $ 81.174 $ 522.028 $ 8,316,876 (8,115,463) (72,102) (68,553) (391,777) (8,647.895) (514,373) 40,482 12,621 130,251 (331,019) 41,619 41,619 41,619 41,619 (514,373) 40,482 12,621 171,870 (289,400) 2,692,388 733,618 257,277 - 3,683,283 $ 2,178,015 $ 774,100 $ 269,898 $ 171,870 $ 3,393 883 Reconciliation of Operating Income (Loss) to Net Cash Provided (Used) by Operating Activities: Operating income (loss) $ (335,102) $ 40,482 $ 12,621 $ 207,824 $ (74,175) Adjustments to reconcile operating income to net cash provided (used) by operating activities: Changes in assets and liabilities Accounts receivable (121.272) - - (60,143) (181.415) Accounts payable and accrued expenses (57,999) - - (17,430) (75,429) Net Cash Provided (Used) by Operating Activities $ (514,373) $ 40,482 $ 12,621 $ 130,251 $ (331,019) M r D -I r 0 x 0 CO Cy n o O> Q > `_D 8 3I o c' m o a m m ' o8CD p<, r to 1p m r N_. c ur D 3C g Q v N N G n(O Q(D a CS ZO rn CD (D r z Q D) co N CD U) m G p Z nID D 0) w N Z n G CD O 0 N G (D n D aQ z I n m Cl) 0 U: D 0 0 A W W O U7 cn .x O c° ' CD s co m lI o w toII(7 4a 3 a LL a Q o m 607 103103 W W O) 00') .n.. 3 N ' �. 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(VD co Co co Cn (31 OA A 0 O Efl -0.-F' 00 01 (31 , 0) 03 0) 4,3 rn 01 JO) CD 0) 0,, r r M i —.IN (fl O A A W W r 00 N N O C N77) 0 m A C 3 CD 3 >2 --:3<01 (D (D 3 7 (D Co (D (D 3 7 O 431 3 C O 10 O O O N 7 C O r r i r X 3 1010 O C01 Ni 7 0 v N A 010OWD (0 00 Q1 A (1)3. p A A m 0) 1 fD "' coO V (D -� (9 0 w1V V (D O 0 0 3 7 CO CD CD 7 0 O CD v : < ID m N N r Q w m D O 3 -onm'S m o. o N CD 3 O a N (!. fA -nw 2 0. O 3 N IT) 3 Co (D N O fl :3 O_ CA 0) IT) :3 8 U) 69 STATISTICAL SECTION Exhibit A-1 CITY OF OSHKOSH, WISCONSIN SUMMARY OF CASH & INVESTMENTS As of December 31, 2007 (1 OF 2) OPERATING FUNDS General Fund 32,010,279.24 19,360,068.59 Treasurer's Working Fund 3,000.00 0.00 Other Petty Cash Funds 4,850.00 0.00 TRUST FUNDS Police Pension 40.00 774,059.56 Firemen's Pension 0.00 269,898.19 Arps Trust 2,640.76 50,448.50 Behncke Library Trust 117.31 210,500.00 Behncke Museum Trust 512.37 157,926.65 William E. Bray Museum Trust 919.27 11,538.46 Cemetery Perpetual Care 1,638.66 533,378.94 Leander Choate 70.48 25,213.78 Clute 714.45 0.00 Amy Davies Library Fund 3,097.12 86,000.00 Durow Trust 428.74 5,047.00 Fisk -Gallup 4,107.92 0.00 Gould 430.16 3,000.00 Gruenwald Trust 485.88 2,000.00 Gruetzmacher Library Trust 222.08 8,000.00 Abbey Harris Library 58.23 86,794.25 Heyman 262.94 30,800.00 Hicks 2,206.27 175,154.50 Hilton 111 533.20 34,000.00 Hilton Library & Museum 0.00 7,147.96 Hilton Special Library 1,165.83 12,650.00 Hoxtel Library Trust 765.49 7,500.00 Huhn Animal Shelter Trust 6.87 4,350.00 Hume 49.74 1,100.00 James Trust 559.05 4,200.00 John Kelsh Library Memorial Fund 207.91 2,500.00 Genevieve Kenny Library Trust 408.96 8,000.00 Kitz Museum Memorial Trust 1,929.30 24,178.39 Kitz Directors Trust 69,773.28 182,690.00 Marie Lehnigk Library Fund 153.40 6,500.00 Malnar Children's Program Trust 0.00 10,000.00 Maxwell -Crawford 193.53 7,400.00 Museum Endowment 5,575.26 104,701.37 John V. Nichols Digital Library Trust 173.67 51,000.00 Pine 457.44 3,000.00 Pittel 424.82 0.00 Public Library Memorial Fund 18,948.19 280,000.00 Rasmussen Library Fund 675.86 28,786.32 Roberts 168.16 2,200.00 Rojahn, Elizabeth 4,199.55 69,687.00 Rojahn, Frank Mace 5,212.01 69,687.00 Rojahn, Frank and Anna 63.71 5,300.00 Rotary 418.87 2,300.00 Ryan 467.50 90,000.00 Sarau 299.04 4,400.00 Stanhilber- Library & Parks 12,180.39 802,020.76 Stanhilber- Parks Only 10.68 2,100.00 M. Zellmer Library Fund 1,648.34 62,520.25 S. Zellmer Library Fund 1,771.91 61,950.00 70 Exhibit A-1 (2 OF 2) Cable TV Franchise - Escrow Flexible Benefits Museum Membership Fund Water Utility - Operating Water Utility - Depreciation Water Utility - Spec Redemption Water Utility -'05 Notes Water Utility -'06 Notes Water Utility -'07 Notes Sewerage Utility - Operating Sewerage Utility - '06 Notes Sewerage Utility -'07 Notes Sewerage Utility - Replacement Fund Sewerage Utility - Debt Service Storm Water - Operating Storm Water -'06 Notes Storm Water -'07 Notes Storm Water - Debt Service Centre Utility Spec Redemption Parking Utility Commission 0.00 10,000.00 61, 548.60 0.00 0.00 113,225.00 4,031,374.89 2,462,766.49 0.00 127,677.49 4,974.64 2,931,316.70 0.00 0.00 0.00 245,703.52 0.00 1,188, 355.02 5,255,132.10 3,820,145.54 0.00 71,033.85 0.00 359,864.03 0.00 3,815,482.91 0.00 1,758,800,04 1,959,548.47 4,615,368.40 0.00 3,550.75 0.00 30,071.82 0.00 648,779.62 0.00 399,151.25 0.00 85,178.95 43,477,102.54 46,428,168.85 71 City of Oshkosh, Wisconsin Exhibit A-2 Net Assets by Component Last Five Years (accrual basis of accounting) 2007 2006 2005 2004 2003 Governmental Activities Invested in Capital Assets, Net of Related Debt $45,658,953 $46,097,367 $37,457,942 $48,476,960 $44,550,014 Restricted 15,366,502 14,982,030 14,374,421 726,155 $758,499 Unrestricted 716,389 (67,571) (1,177,920) (427,857) 1,403,134 Total Governmental Activities Net Assets 61,741,844 61,011,826 50,654,443 48,775,258 46,711,647 Business -Type Activities Invested in Capital Assets, Net of Related Debt 99,063,739 93,805,213 74,729,006 82,239,212 $77,431,029 Unrestricted 14,053,313 9,079,028 20,292,999 19,141,677 $24,404,857 Total Business -Type Activities Net Assets 113,117,052 102,884,241 95,022,005 101,380,889 101,835,886 Primary government Invested in Capital Assets, Net of Related Debt Restricted Unrestricted Total Primary Government Net Assets 144,722,692 139,902,580 112,186,948 130,716,172 $121,981,043 15,366,502 14,982,030 14,374,421 726,155 $758,499 14,769,702 9,011,457 19,115,079 18,713,820 $25,807,991 $174,858,896 $163,896,067 $145,676,448 $150,156,147 $148,547,533 72 City of Oshkosh, Wisconsin Changes in Net Assets Last Five Years (accrual basis of accounting) Exhibit A-3 2007 2006 2005 2004 2003 Program Revenues Governmental Activities: Charges for Services: General Government $73,298 $70,863 $77,703 $90,458 $559,071 Public Safety 3,886,660 3,924,570 3,698,540 3,689,398 3,188,199 Public Works 3,119,360 4,207,734 3,581,577 3,204,371 4,379,978 Health and welfare 185,436 206,410 114,797 120,668 117,448 Parks and recreation 1,344,431 1,509,167 1,138,021 1,I98,849 1,296,422 Transportation 0 0 0 0 0 Community development 3,919,132 4,401,900 4,463,139 3,550,859 3,478,140 Operating grants and contributions 4,710,329 13,167,579 5,456,071 5,637,290 6,549,414 Unclassified 0 0 0 0 0 Interest on debt 0 0 0 0 0 Total Governmental Activities Program Revenues 17,238,646 27,488,223 18,529,848 17,491,893 19,568,672 Business -Type Activities: Charges for Services: Transit utility 602,759 573,399 529,318 508,444 503,363 Water utility 11,085,840 10,365,395 10,204,874 9,579,543 9,796,507 Sewer utility 8,418,753 7,761,982 7,839,060 7,428,260 7,702,332 Operating grants and contributions 3,682,269 3,539,218 3,396,000 3,150,375 3,053,046 Capital grants and contributions 2,301,284 3,999,620 2,193,123 1,143,609 3,664,508 Other 3986,961 3,8574 2,752,896 2,687,840 1,520,106 Total Business -Type Activities Program Revenues 30,077,766 30,097,017 26,915,271 24,498,071 26,239,862 Total Primary Government Program Revenues 47,316,412 57 5240 45,445,119 41,989,964 45,808,534 Expenses Governmental Activities: General Government 6,218,945 5,893,337 5,524,239 5,174,616 5,060,642 Public Safety 22,066,233 21,557,204 20,585,030 20,139,823 19,195,511 Public Works 13,897,933 13,637,723 13,585,298 12,009,554 12,576,067 Health and welfare 915,465 898,430 824,191 785,917 762,286 Parks and recreation 8,362,968 7,763,946 5,869,280 4,978,378 6,589,855 Transportation 623,311 589,271 615,915 592,520 606,973 Community development 4,175,538 5,373,570 5,541,333 4,926,854 5,333,571 Unclassified 416,416 395,766 496,198 1,830,058 472,968 Interest on debt 3,005,211 3,335,421 2,824,167 2,551,011 2,553,539 Total Governmental Activities Expenses 59,682,020 59,444,668 55,865,651 52,988,731 53,151,412 Business -Type Activities: Transit utility 4,654,186 4,517,297 4,412,329 4,089,908 3,908,175 Water utility 9,759,651 9,401,303 9,227,767 9,393,484 9,078,934 Sewer utility 7,854,061 7,860,915 8,057,719 7,342,887 7,258,697 Other 5,429,505 5,674,537 4,910,808 4,634,186 4,022,310 Total Business -Type Activities Expenses 27,697,403 27,454,052 26,608,623 25,460,465 24,268,116 Total Primary Government Expenses $87,379,423 $86,898,720 $82,474,274 $78,449,196 $77,419,528 (continued) 73 City of Oshkosh, Wisconsin Changes in Net Assets (continued) Last Five Years (accrual basis of accounting) Exhibit A-3 2007 2006 2005 2004 2003 Net (Expense)/Revenue Governmental Activities ($42,443,374) ($31,956,445) ($37,335,803) ($35,496,838) ($33,582,740) Business -Type Activities 2,380,363 2,642,965 306,648 (962,394) 1,971,746 Total Primary Government Net Expense ($40,063,011) ($29,313,480) ($37,029,155) ($36,459,232) ($31,610,994) General Revenues and Other Changes in Net Assets Governmental Activities: Taxes: Property and Other Local Taxes Levied For: General Purposes $10,330,110 $9,697,647 $9,362,882 $7,912,638 $8,498,183 Other Purposes 13,924,251 13,809,191 13,636,562 13,577,329 14,643,299 Debt Service 15,705,026 15,055,768 14,718,268 14,556,064 13,573,197 Investment Earnings 2,582,645 2,624,221 1,124,103 469,696 554,185 Gain (Loss) on Sale of Capital Assets 49,723 581,637 157,395 969,607 (488,406) 861,578 289,221 755,502 23,724 575,330 Miscellaneous Transfers Total Governmental Activities $43,173,392 42,313,829 39,214,987 37,560,450 37,867,918 Business -Type Activities: General Purposes property taxes levied for 5,912,175 5,293,820 5,261,237 4,884,673 $4,388,943 Investment Earnings 1,619,447 1,531,912 1,028,802 465,604 $435,176 Gain (Loss) on Sale of Capital Assets 320,826 (1,606,461) (12,955,571) (4,842,880) $309,351 Miscellaneous Transfers Total Business -Type Activities 7,852,448 5,219,271 (6,665,532) 507,397 5,133,470 Total Primary Government $51,025,840 47,533,100 32,549,455 38,067,847 43,001,388 Change in Net Assets Governmental Activities 730,018 10,357,384 1,879,184 2,063,612 4,285,178 Business -Type Activities 10,232,811 7,862,236 (6,358,884) (454,997) 7,105,216 Total Primary Government Change in Net Assets 10,962,829 $18,219,620 ($4,479,700) $1,608,615 $11,390,394 74 wr o d ddn C) !- y 0v m" s !-!Uh CaMJ a o o" yu mm �. ) a a o" = D G 2 m n rn o m p C 7 a "= a Da G O< Z 0 CD a a O a s O H H 0 o ? 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P-`Oy, 21 CCD O On G C Cs a a o N H 05 a. m x C- 75 City of Oshkosh, Wisconsin Exhibit A-5 Changes in Fund Balances, Governmental Funds Last Five Fiscal Years (accrual basis of accounting) 2007 2006 2005 2004 2003 Revenues Taxes $25,911,221 $24,660,520 $24,011,983 $22,413,574 $22,017,937 Special assessments 1,694,690 2,042,869 2,099,207 1,673,706 3,113,198 Intergovernmental 18,690,654 19,649,114 19,839,557 18,869,568 21,161,027 Licenses and permits 1,709,402 1,589,996 1,419,419 1,546,393 1,541,578 Fines and forfeits 851,683 865,368 843,888 860,621 833,600 Public charges for services 4,578,523 5,422,822 4,416,599 3,959,872 3,744,498 Intergovernmental charges for services 2,545,173 2,718,626 2,754,812 3,199,235 2,529,805 Miscellaneous 4,313,507 12,7I4,809 2,745,313 2,369,329 1,937,234 Total Revenues 60,294,853 69,664,124 58,130,778 54,892,298 56,878,877 Expenditures Current General government 5,854,440 5,524,037 5,482,933 5,019,688 4,978,527 Public safety 21,102,472 20,896,004 20,560,573 19,236,100 18,482,022 Public works 8,712,988 8,961,586 8,526,759 8,718,091 8,498,611 Health and welfare 915,465 898,430 823,693 784,796 761,165 Parks and recreation 7,287,802 7,274,008 6,747,328 6,280,801 6,246,455 Transportation 623,311 589,271 615,915 592,520 606,973 Community development 4,070,772 5,254,435 5,194,478 5,074,209 6,003,111 Unclassified 416,416 395,766 496,198 1,830,058 472,968 Debt service Principal 5,470,617 5,057,639 2,045,348 4,745,557 4,192,779 Interest and fiscal charges 2,991,930 3,376,240 2,836,291 2,622,884 2,624,892 Capital outlay 6,469,538 19,359,022 6,683,580 5,470,441 7,660,504 Total Expenditures 63,915,751 77,586,438 60,013,096 60,375,145 60,528,007 Excess of Revenues Over (Under) Expenditures (3,620,898) (7,922,314) (1,882,318) (5,482,847) (3,649,130) Other Financing Sources (Uses) Long-term debt issued 5,200,172 16,041,596 14,683,469 4,228,000 5,328,000 Refunding debt issued 16,048,774 Payment to refunding escrow agent (7,763,518) 0 (26,755) (16,048,774) Transfers in 8,564,967 8,056,339 10,438,726 7,617,007 7,077,975 Transfers out (8,564 967) (8,056 339) (10 438,726) (7,617,007) (7,077,975) Total Other Financing Sources (Uses) 5,200,172 8,278,078 14,683,469 4,201,245 5,328,000 Excess of Revenues and Other Financing Sources Over (Under) Expenditures and Other Financing Uses 1,579,274 355,764 12,801,151 (1,281,602) 1,678,870 Fund Balances - January 1 26.173,307 25,817,543 13,016,392 14,297,994 12,619,124 Fund Balances - December 31 $27,752,581 $26,173,307 $25,817,543 $13,016,392 $14,297,994 76 Exhibit A-6 City of Oshkosh, Wisconsin Program Revenues by Function/Program Last Five Years 2007 2006 2005 2004 2003 REVENUES Taxes & Special Assess. $ 25,939,725 S 24,618,227 $ 24,601,129 $ 22,274,716 $ 22,476,451 Licenses & Permits 1,322,421 1,214,293 1,032,128 856,609 88,914 Fines & Costs 733,249 784,376 750,571 860,621 833,600 Shared Taxes - State and 16,959,446 17,276,831 16,586,851 16,480,520 17,446,096 Federal Aids Use of Property and Money 1,173,004 950,556 514,972 443,449 519,627 Charges for Current Serv. 4,049,304 3,776,708 4,159,797 3,231,249 2,707,359 Health & Welfare 0 0 0 0 0 Interdepartmental Rev. 10,091,460 10,026,313 9,417,682 8,949,155 9,463,555 Unclassified 107,660 137,898 110,000 296,642 112,724 $ 60,376,269 S 58,785,202 $ 57,173,130 $ 53,392,961 $ 53,648,326 SUMMARY -SHARED TAXES - STATE & FEDERAL AIDS Shared State Aids $ 11,073,727 $ 1I,075,468 $ 11,076,027 $ 11,065,483 $ 12,125,047 Highway Aids 2,843,112 2,767,382 2,740,6I5 2,707,989 2,682,437 Housing Authority 0 429,127 0 0 0 Muni. Serv.-State Prop. 1,322,063 1,333,774 I,277,417 1,222,605 1,225,185 County Ambulance Aid 174,934 159,884 146,188 141,930 65,972 Parks/Forestry Aids 5,398 0 0 3,871 1,883 Tax Disparity Aids 1,088,157 1,067,259 977,077 985,860 980,694 Cable TV 6,332 7,914 9,332 5,557 7,036 State Computer Credit 199,152 210,086 190,635 187,440 204,965 Fire 40,000 33,000 0 0 0 Police Training Aids 206,571 192,937 169,560 159,785 152,877 $ 16,959,446 $ 17,276,831 $ 16,586,851 $ 16,480,520 $ 17,446,096 77 City of Oshkosh, Wisconsin Exhibit A-7 HISTORICAL VALUATIONS AND TAX RECORDS ASSESSED TOTAL STATE VALUE AS A REAL PERSONAL ASSESSED EQUALIZED PERCENTAGE OF VF A R ESTATE, PROPERTY VALUE VALUATION EOUALIZED VALUE 1992 1,175,938,400 86,639,100 1,262,577,500 1,527,433,800 82.66 1993 1,205,286,800 89,160,900 1,294,447,700 1,639,978,900 78.93 1994 1,225,515,300 90,718,800 1,316,234,100 1,747,247,000 75.33 1995 1,766,049,300 116,065,600 1,882,114,900 1,827,673,200 102.8 1996 1,821,550, 500 116,108,400 1,937,65 8,900 1,910, 807,000 101.41 1997 1,868,133,900 119,457,600 1,987,591,500 2,044,982,800 97.19 1998 1,922,771,400 123,676,200 2,046,447,600 2,155,070,900 94.87 1999 1,972,360,400 100,470,200 2,072,830,600 2,267,759,900 91.44 2000 2,039,759,700 100,600,400 2,140,360,100 2,432,030,100 88.01 2001 2,095,966,400 107,132,500 2,203,098,900 2,566,679,800 85.84 2002 2,157,579,700 109,268,200 2,266,847,900 2,749,469,500 72.45 2003 2,221,822,400 108,150,100 2,329,972,500 2,924,336,700 79.68 2004 2,260,487,900 107,771,900 2,368,259,800 3,141,524,900 75.39 2005 3,260,277,500 135,885,300 3,396,162,800 3,335,517,300 101.82 2006 3,334,485,900 149,401,700 3,483,887,600 3,558,114,300 97.91 2007 3,441,866,900 129,642,300 3,571,509,200 3,722,810,200 95.94 TAX RATE $100 STATE STATE COUNTY COUNTY CITY CITY TAX NET YEAR TAX TAX SCHOOL SCHOOL* GENERAL TOTAL CREDIT TAX 1992 0.025 0.621 0.000 2.251 0.995 3.892 0.223 3.669 1993 0.026 0.635 0.000 2.294 1.011 3.966 0.218 3.748 1994 0.027 0.659 0.000 2.276 0.995 3.957 0.213 3.744 1995 0.019 0.460 0.000 1.542 0.699 2.720 0.149 2.571 1996 0.020 0.467 0.000 1.189 0.756 2.432 0.209 2.223 1997 0.021 0.489 0.000 1.148 0.795 2.453 0.195 2.258 1998 0.021 0.521 0.000 1.172 0.811 2.525 0.177 2.348 1999 0.022 0.542 0.000 1.173 0.819 2.556 0.164 2.392 2000 0.023 0.572 0.000 1.211 0.896 2.702 0.154 2.548 2001 0.023 0.627 0.000 1.231 0.977 2.858 0.149 2.709 2002 0.024 0.662 0.000 1.189 1.000 2.875 0.143 2.732 2003 0.025 0.667 0.000 1.199 1.000 2.891 0.136 2.755 2004 0.026 0.715 0.000 1.273 1.057 3.071 0.130 2.941 2005 0.018 0.521 0.000 0.879 0.761 2.179 0.088 2.091 2006 0.018 0.547 0.000 0.916 0.782 2.263 0.108 2.155 2007 0.018 0.567 0.000 0.945 0.798 2.328 0.120 2.208 *City school tax rate includes vocational school rate. In 2007 vocational portion was .174. 78 Exhibit A-8 City of Oshkosh, Wisconsin RECOMMENDED FULL VALUE ASSESSMENTS Year Residential Mercantile 1985 658,296,800 254,139,000 1986 691,246,400 266,936,200 1987 720,465,800 276,034,600 1988 755,944,700 285,004,100 1989 772,577,500 291,199,100 1990 801,000,600 319,665,600 1991 864,003,400 340,686,000 1992 916,608,300 382,824,400 1993 978,535,600 417,121,300 1994 1,073,119,800 424,109,800 1995 1,140,699,100 428,294,700 1996 1,191,779,200 459,385,800 1997 1,271,383,300 500,274,400 1998 1, 336, 019,700 547, 994, 300 1999 1,410,931,800 585,207,400 2000 1,519,317,600 627,013,900 2001 1,588,750,300 676,820,500 2002 1,705,634,900 729,344,900 2003 1,799,507,200 799,262,800 2004 1,929,467,500 887,957,700 2005 2,046,379,000 953,894,600 2006 2,149,400,100 1,058,327,500 2007 2,217,566,200 1,152,257,000 Source: Winnebago County Statistical Report Manufacturing Other Total 100,784,000 0 1,013,219,800 96,754,800 0 1,054,937,400 103,213,500 0 1,099,713,900 110, 549, 900 0 1,151,498, 700 111, 800, 800 0 1,175, 577,400 117,645,200 0 1,238,311,400 122,203,100 0 1,326,892,500 124,178,800 0 1,423,611,500 130, 211,200 0 1,525, 868,100 130,844,400 0 1,628,074,000 139,373,100 0 1,708,366,900 149, 793, 000 0 1, 800, 958, 000 150, 711, 500 0 1, 922, 369,200 147,334,200 0 2,031,348,200 158,695,200 2,271,000 2,157,105,400 171,813,700 205,600 2,318,350,800 177,677,300 921,700 2,444,169,800 184,670,400 569,700 2,620,219,900 192,434,700 728,400 2,791,933,100 187,322,000 682,700 3,005,429,900 198,994,500 774,900 3,200,043,000 197,893,800 1,207,700 3,406,829,100 216,171,100 720,900 3, 586, 715, 200 79 Exhibit A-9 City of Oshkosh, Wisconsin Principal Taxpayers 12/31/1997 and 12/31/2007 December 31, 2007 Real Property Percentage of Total Taxpayer Assessed Valuation (I) Assessed Valuation Midwest Realty $70,375,800 2.04% Curwood Inc 35,485,300 1.03 Thomas N. Rusch, etal 47,855,300 1.39 Oshkosh Truck 26,647,100 0.77 Dumke & Assoc. 28,363,400 0.82 Peter Jungbacker, etal 20,017,200 0.58 First Horizon 29,403,900 0.85 Westowne Shoppes, etal 22,827,400 0.66 Dennis Schwab, etal 20,665,900 0.60 Pine Investments 19,720,600 0.57 $321,361,900 9.34% Total Assessed Valuation $3,441,866,200 December 31, 1997 Real Property Percentage of Total Taxpayer Assessed Valuation (1) Assessed Valuation Curwood Inc. (Bemis) & Weldon Inc. $26,634,700 1.34% Oshkosh Truck Corp., Candence Co. 17,364,900 0.87 Thomas N. Rusch, etal 15,824,700 0.80 First Horizon Group Ltd, Partnership 12,857,000 0.65 The Fonda Group 10,089,900 0.51 John Mark - Security Investments 13,352,100 0.67 Dennis Schwab, Landmark Ltd Partnership 10,931,200 0.55 Oshkosh B'Gosh 9,915,200 0.50 Park Plaza -Miles Kimball 10,370,700 0.52 Glimcher Properties, Ltd. Partnership 8,784,400 0.44 $136,124,800 6.85% Total Assessed Valuation $1,987,591,500 (1) Assessed valuation based on the valuation of property for taxes collected in 2007 and 1997 respectively, and a review of the 10 largest taxpayers for the City. Source: City of Oshkosh Assessor's Office 80 City of Oshkosh, Wisconsin Exhibit A-1 0 Property Tax Levies And Collections Last Ten Years Percent of Percent of Total Current Current Tax Delinquent Total Total Tax Tax Tax Collections Tax Tax Collections Year Levy Collections To Tax Levy Collections Collections (1) To Tax Levy 2006 $81,158,972 $78,653,692 96.91 % 2005 76,396,795 74,165,036 97.08 $2,223,007 $76,388,043 99.99 % 2004 74,331,644 72,467,595 97.49 1,855,411 74,323,006 99.99 2003 69,933,492 67,935,039 97.14 1,925,290 69,860,329 99.90 2002 67,421,077 65,397,614 97.00 1,951,752 67,349,366 99.89 2001 64,794,558 63,274,133 97.65 1,505,502 64,779,635 99.98 2000 59,629,006 57,994,500 97.26 1,612,283 59,606,783 99.96 1999 54,706,079 53,358,355 97.54 1,335,729 54,694,084 99.98 1998 53,516,680 52,433,090 97.98 1,077,376 53,510,466 99.99 1997 50,844,753 49,729,995 97.81 1,108,827 50,838,822 99.99 Sources: Winnebago County Treasurer and City of Oshkosh Department of Finance. 81 Exhibit A-11 STATEMENT OF INDEBTEDNESS City of Oshkosh, Wisconsin As of December 31, 2007 GENERAL OBLIGATION DEBT OUTSTANDING AND LEGAL DEBT MARGIN Equalized Value.................................. Legal Debt Margin* ............................ Bonds Outstanding .............................. Legal Debt Margin .............................. For City General Purposes $ 3,722,810,200 $ 5% 186,140,510 (1 OF 2) For School Purposes 4,710,469,279 10 % 471,046,928 119,580,048 23,398,101 $ 66,560,462 $ 447,648,827 *Pursuant to Section 67.03, Wisconsin Statutes, the total indebtedness of the City for general purposes may not exceed 5% of the value of the taxable property located therein as equalized for State purposes. The total indebtedness of the City for school purposes may not exceed 10% of the value of the taxable property located therein, plus the value of taxable property in the territory attached to the City for school purposes only. For City General Purposes..... Total Direct Debt.................... OVERLAPPING DEBT Winnebago County.................. For School Purposes............... Fox Valley Tech. College........ Total Debt................................ 2007 Population - 65,810 Ratio of Debt to Equalized Value: Ratio of Debt Per Capita: Per Cent of Debt Applicable to Outstanding Municipality $ 119,580,048 100.00% 119,580,048 66,320,000 23,398,101 48,185,000 $ 257,483,149 Investment Rating by Moody's , Feb. '07 - Aa3 31.1% 73.7% 10.8% Direct Municipal Purposes only..... Direct Municipal Purposes Only.... Municipality's Share of Debt $ 119,580,048 119,580,048 20,625,520 17,244,400 5,203,980 $ 162,653,948 3.21% $ 1,817.05 82 STATEMENT OF INDEBTEDNESS City of Oshkosh, Wisconsin Exhibit A-12 Exhibit A-12 Schedule of Bonds and Notes for City Purposes, Issued, (2 of 2) Retired and Outstanding as of December 31, 2007. Year of Authorized Retired as of Outstanding BONDS Issue and Issued 12-31-07 12-31-07 Clean Water Fund - Improvements to sewer utility. 1993 2,881,402 1,908,525 972,877 Note: Amount authorized up to $2,994,450. Clean Water Fund - Improvements to sewer utility. 1995 17,631,410 9,194,973 8,436,437 Note: Amount authorized up to $18,388,072 Taxable GO Corporate Purpose Refunding Bonds - Refunding 1997 955,000 855,000 100,000 1989 -A Bonds. Water Revenue Bond - Safe Drinking Water 1998 11,913,672 4,310,225 7,603,447 G O Corporate Purpose Bonds -Improvements to Streets, Storm 1998 3,975,000 3,690,000 285,000 & Sanitary Sewers, Parks, Property & Water Utility, & Special Assessments. GO Corporate Purpose Refunding Bonds - 1999 4,540,000 1,920,000 2,620,000 Clean Water Fund - Improvements to sewer utility. 1999 3,169,210 1,061,194 2,108,016 Corporate Purpose Bond Issue - Improvements to streets, 1999 3,560,000 1,370,000 2,190,000 storm sewers, sanitary sewers, water, parks and property improvements. Water Revenue Bonds - Safe Drinking Water 2000 13,636,364 4,168,278 9,468,086 Corporate Purpose Bonds - Improvements to Streets, 2000 8,305,000 7,915,000 390,000 Storm & Sanitary Sewers, Parks, Property & Water Utility, & Special Assessments. Corporate Purpose Bond Issue - Improvements to streets, 2001 A 6,390,000 6,095,000 295,000 storm sewers, sanitary sewers, parks and property improvements. Safe Drinking Water Bond 2001 3,483,913 854,832 2,629,081 Corporate Purpose Bonds 2002A 11,225,000 1,685,000 9,540,000 Corporate Purpose Taxable Bonds 2002C 7,580,000 1,055,000 6,525,000 Corporate Purpose Bonds 03A, Park Improvements, 2003A 11,675,000 1,415,000 10,260,000 Splash pad, Fire Engine, rep! Transit buses, upgrade Cable TV, storm, TIF 19, 18, 14,13, 12. Corporate Purpose Taxable Bonds 2003C 1,420,000 160,000 1,260,000 Corporate Purpose Taxable Ref Bonds, TIF 15, TIF 11, 2003D 8,615,000 2,440,000 6,175,000 TIF I3, TIF 12, TIF 8, TIF 14 Corporate Purpose Refunding Bonds, Gen and Parking 2003E 1,050,000 360,000 690,000 Water Rev Ref Bonds 2003G 2,065,000 1,170,000 895,000 Corporate Purpose Bonds 04A, Sawyer Stand bridge, 2004A 6,480,000 590,000 5,890,000 Witzel and Church Ave, Park Imp, Swr, Wtr, Storm, Gen, TIF 19 -NW Ind Park, TIF 14 -Mercy Medical Centre Taxable Rev Ref Bonds 2004 2,065,000 1,135,000 930,000 Rev Bond Clean Water Fund 2004 3,361,441 365,262 2,996,179 Corporate Purpose G O Bonds 2005A, playground, 2005A 7,395,000 555,000 6,840,000 Three basketball courts, TIF 19, TIF 14, TIF 18, Wtr, Swr, General Storm Water Revenue Bonds 2005C 2005C 4,820,000 345,000 4,475,000 Corporate Purpose Refunding Bonds 2005D 2005D 18,335,000 1,510,000 16,825,000 Corporate Purpose Bonds 2006A, streets, floating dock 2006A 9,265,000 325,000 8,940,000 along amphitheater, swr, gen, TIF20 Corporate Purpose GO Bonds 2006C, Tif 20 2006C 1,995,000 65,000 1,930,000 G O Refunding Bonds 2006D, ref 1998-C and 1998-D 2006D 11,865,000 2,505,000 9,360,000 Water Rev Ref Bonds 2006G 12,705,000 375,000 12,330,000 Corporate Purpose GO Bonds 2007A, Streets, Swr, 2007A 7,950,000 7,950,000 S3 Park Improvements, Water TOTAL BONDS 210,307,412 59,398,289 150,909,123 STATEMENT OF INDEBTEDNESS City of Oshkosh, Wisconsin Schedule of Bonds and Notes for City Purposes, Issued, Retired and Outstanding as of December 31, 2007. NOTES Promissory Notes - Sidewalks, Traffic Signals, Major Equipment and property improvements. Promissory Notes - Improvements to streets, storm sewers,. sanitary sewers, water, parks and property improvements. Promissory Notes - Improvements to Streets, Storm and Storm and Sanitary Sewers, Sidewalks, Traffic lights, Parks, Fire house & site, Major equipment, TIF and Parking lots. Promissory Notes - Improvements to Municipal Golf Course. Promissory Notes - Improvements to Sidwalks, Traffic lights, Major Equipment, and Property improvements Promissory Notes Promissory Notes - TIF 18 SW Ind Comm of Pub Lands Promissory Notes Promissory Notes 03 TIF 14 Mercy Comm of Pub Lands Promissory Notes 03 TIF 13 Comm of Pub Lands Promissory Refunding Notes, Swr, Wtr, Gen, Transit, TIF 8-S Aviation, TIF 7 -SW Ind Promissory Notes 03 TIF 13 Comm of Pub Lands, Osh Centre Hotel and Covention Center Promissory Notes 04 G O, Gen, Wtr, Swr Promissory Notes State Trust Fund, Riverside Park Promissory Notes TIF 14 Comm of Pub Lands Promissory Notes TIF 14 Comm of Pub Lands Promissory Notes 2005B, Gen, Wtr, Swr, Storm Promissory Notes 05 Expand Riverside Park Promissory Notes 05 TIF 13 and TIF 17 Promissory Notes 05 TIF 8 and TIF 13 Promissory Notes 06B, Gen, Water, Sewer, Storm, Trans Promissory Notes 07B, Gen, Water, Sewer, Storm, Ohio/WI St Bridge, Swr interceptor Hazel/New York, Sanitation automated collect, Wtr new meter reading. TOTAL NOTES Year of Authorized Issue and Issued 1998 1,510,000 1999 2,820,000 2000 2,210,000 2000 2001B 2002B 2002 2003B 2003 2003 2003F 2003 2004B 2004 2004 2004 2005B 2005 2005 2005 2006B 2007B 1,500,000 2,110,000 2,260,000 1,012,000 2,615,000 375,000 1,365,720 4,380,000 226,000 1,565,000 1,200,000 99,000 100,000 2,540,000 200,000 1,163,000 656,000 2,500,000 3,375,000 Exhibit A-12 Retired as of Outstanding 1 ^f '11 n^l 1'1 7 1 17 1,510,000 0 2,360,000 460,000 1,605,000 605,000 360,000 1,140,000 1,280,000 830,000 1,105,000 1,155,000 175,640 836,360 1,025,000 1,590,000 48,866 326,134 194,854 1,170,866 3,260,000 1,120,000 18,769 207,231 450,000 1,115,000 64,249 1,13 5,751 5,470 93,530 4,515 95,485 505,000 2,035,000 14,293 185,707 28,780 1,134,220 16,233 639,767 235,000 2,265,000 3,375,000 35,781,720 14,266,669 21,515,051 NET INDEBTEDNESS FOR CITY GENERAL PURPOSES $ 246,089,132 S 73,664,958 $ 172,424,174 84 CITY OF OSHKOSH Exhibit A-13 (1 OF 3) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENT FOR OUTSTANDING GENERAL OBLIGATION BONDS AND NOTES AND REVENUE BONDS ISSUED FOR CITY PURPOSES AS OF DECEMBER 31, 2007 Calendar Year Bonds Notes Revenue Bonds Total 2008 $ 12,140,844 $ 4,136,472 $ 5,823,073 $ 22,100,389 2009 11,561,639 4,632,606 5,903,906 22,098,151 2010 10,883,695 3,219,031 5,927,620 20,030,346 2011 10,318,995 2,525,709 5,581,931 18,426,635 2012 9,747,521 2,204,164 5,340,671 17,292,356 2013 8,636,306 1,858,012 5,113,156 15,607,474 2014 8,544,038 1,642,832 5,113,341 15,300,211 2015 8,296,933 1,313,958 3,754,291 13,365,182 2016 8,021,918 969,630 3,752,745 12,744,293 2017 7,775,583 517,226 3,759,598 I2,052,407 2018 7,441,732 517,227 3,784,514 11,743,473 2019 7,169,568 517,212 2,989,896 10,676,676 2020 6,492,022 517,227 1,853,242 8,862,491 2021 5,740,555 517,221 1,859,722 8,117,498 2022 3,704,413 518,043 1,406,753 5,629,209 2023 2,782,961 436,658 1,406,245 4,625,864 2024 2,095,910 279,361 1,408,599 3,783,870 2025 1,510,877 161,823 1,199,320 2,872,020 2026 626,250 0 626,250 $ 133,491,760 $ 26,484,412 $ 65,978,623 $ 225,954,795 SPECIAL ASSESSMENTS AS OF 12-31-07 Total Special Assessments against property in the City of Oshkosh are as follows: Street Improvements Sanitary Sewers Water Mains Sidewalks Deferred Assessments Plumbing Electrical Overlay Engineering $ 1,892,779 235,276 57,496 352,048 159,928 8,400 0 47,035 0 $ 2,752,962 The City of Oshkosh is not responsible for the payments of the above special assessments and the special assessments cannot be paid from ad valorem taxes. 85 CITY OF OSHKOSH Exhibit A-13 (2 OF 3) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL REQUIREMENT FOR OUTSTANDING GENERAL OBLIGATION BONDS AND NOTES AND REVENUE BONDS ISSUED FOR CITY PURPOSES AS OF DECEMBER 31, 2007 Calendar Year Bonds Notes Revenue Bonds Total 2008 $ 7,690,000 $ 3,249,065 $ 4,100,210 $ 15,039,275 2009 7,595,000 3,871,212 4,314,828 15,781,040 2010 7,205,000 2,618,178 4,482,160 14,305,338 2011 6,925,000 2,025,725 4,287,286 13,238,011 2012 6,645,000 1,783,245 4,185,290 12,613,535 2013 5,820,000 1,507,654 4,088,697 11,416,351 2014 5,980,000 1,352,125 4,219,369 11,551,494 2015 5,995,000 1,077,301 2,973,084 10,045,385 2016 5,985,000 777,739 3,065,707 9,828,446 2017 6,010,000 359,884 3,169,928 9,539,812 2018 5,950,000 377,387 3,295,789 9,623,176 2019 5,950,000 395,743 2,597,880 8,943,623 2020 5,550,000 414,714 1,534,168 7,498,882 2021 5,060,000 435,170 1,599,738 7,094,908 2022 3,267,310 457,159 1,206,790 4,931,259 2023 2,497,690 398,027 1,256,625 4,152,342 2024 1,920,000 259,940 1,311,575 3,491,515 2025 1,420,000 154,780 1,155,000 2,729,780 2026 600,000 0 0 600,000 $ 98,065,000 $ 21,515,048 $ 52,844,124 $ 172,424,172 86 CITY OF OSHKOSH Exhibit A-13 (3 OF 3) WINNEBAGO COUNTY, WISCONSIN ANNUAL INTEREST REQUIREMENT FOR OUTSTANDING GENERAL OBLIGATION BONDS AND NOTES AND REVENUE BONDS ISSUED FOR CITY PURPOSES AS OF DECEMBER 31, 2007 Calendar Year Bonds Notes Revenue Bonds Total 2008 $ 4,450,844 $ 887,407 $ 1,722,863 $ 7,061,114 2009 3,966,639 761,391 1,589,078 6,317,108 2010 3,678,695 600,853 1,445,460 5,725,008 2011 3,3 93,995 499,984 1,294,645 5,188,624 2012 3,102,521 420,919 1,155,381 4,678,821 2013 2,816,306 350,358 1,024,459 4,191,123 2014 2,564,038 290,707 893,972 3,748,717 2015 2,301,933 236,657 781,207 3,319,797 2016 2,036,918 191,891 687,038 2,915,847 2017 1,765,583 157,342 589,670 2,512,595 2018 1,491,732 139,840 488,725 2,120,297 2019 1,219,568 121,469 392,016 1,733,053 2000 942,022 102,513 319,074 1,363,609 2021 680,555 82,051 259,984 1,022,590 2022 437,103 60,884 199,963 697,950 2023 285,271 38,631 149,620 473,522 2024 175,910 19,421 97,024 292,355 2025 90,877 7,043 44,320 142,240 2026 26,250 0 26,250 $ 35,426,760 $ 4,969,361 $ 13,134,499 $ 53,530,620 87 Exhibit A-14 CITY OF OSHKOSH (1 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION BONDS AND NOTES (Includes Amounts Issued to Other Funds) December 31, 2007 BONDS Calendar Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Principal $ 7,690,000 7,595,000 7,205,000 6,925,000 6,645,000 5,820,000 5,980,000 5,995,000 5,985,000 6,010,000 5,950,000 5,950,000 5,550,000 5,060,000 3,267,310 2,497,690 1,920,000 1,420,000 600,000 Interest $ 4,450,844 3,966,639 3,678,695 3,393,995 3,102,521 2,816,306 2,564,038 2,301,933 2,036,918 1,765,583 1,491,732 1,219,568 942,022 680,555 437,103 285,271 175,910 90,877 26,250 12,140,844 11,561,639 10,883,695 10,318,995 9,747,521 8,636,306 8,544,038 8,296,933 8,021,918 7,775,583 7,441,732 7,169,568 6,492,022 5,740,555 3,704,413 2,782,961 2,095,910 1,510,877 $ 98,065,000 $ 35,426,760 $ 133,491,760 88 Exhibit A-14 CITY OF OSHKOSH (1 OF 12 Cont'd) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION BONDS AND NOTES (Includes Amounts Issued to Other Funds) December 31, 2007 BANK NOTES Calendar Year Principal Interest 2008 $ 3,249,065 $ 887,407 2009 3,871,212 761,394 2010 2,618,178 600,853 2011 2,025,725 499,984 2012 1,783,245 420,919 2013 1,507,654 350,358 2014 1,352,125 290,707 2015 1,077,301 236,657 2016 777,739 191,891 2017 359,884 157,342 2018 377,387 139,840 2019 395,743 121,469 2020 414,714 102,513 2021 435,170 82,051 2022 457,159 60,884 2023 398,027 38,631 2024 259,940 19,421 2025 154,780 7,043 2026 $ 21,515,048 $ 4,969,364 TOTAL G.O. INDEBTNESS $ 119,580,048 $ 40,396,124 4,136,472 4,632,606 3,219,031 2,525,709 2,204,164 1,858,012 1,642,832 1,313,958 969,630 517,226 517,227 517,212 517,227 517,221 518,043 436,658 279,361 161,823 $ 26,484,412 $ 159,976,172 89 Exhibit A-14 CITY OF OSHKOSH (2 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENT FOR OUTSTANDING GENERAL OBLIGATION BONDS AND NOTES ISSUED FOR CITY PURPOSES AS OF DECEMBER 31, 2007 Calendar Year Notes Bonds Total 2008 $ 4,136,476 $ 12,140,840 $ 16,277,316 2009 4,632,616 11,561,630 16,194,245 2010 3,219,033 10,883,693 14,102,726 2011 2,525,714 10,318,990 12,844,704 2012 2,204,163 9,747,523 11,951,685 2013 1,858,014 8,636,304 10,494,318 2014 1,642,834 8,544,036 10,186,870 2015 1,313,960 8,296,932 9,610,891 2016 969,626 8,021,923 8,991,548 2017 517,224 7,775,585 8,292,809 2018 517,224 7,441,735 7,958,959 2019 517,224 7,169,556 7,686,780 2020 517,224 6,492,025 7,009,249 2021 517,221 5,740,555 6,257,776 2022 518,039 3,792,105 4,310,144 2023 436,659 2,695,272 3,131,931 2024 279,362 2,095,909 2,375,271 2025 161,822 1,510,878 1,672,700 2026 0 626,250 626,250 $ 26,484,433 $ 133,491,739 $ 159,976,172 90 Exhibit A-14 CITY OF OSHKOSH (3 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR GENERAL CITY PURPOSES December 31, 2007 Calendar Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Principal $ 5,302,282 $ 4,840,909 4,580,482 4,510,982 4,397,110 3,465,626 3,353,517 3,073,948 2,806,817 2,436,384 2,262,143 2,147,935 1,905,436 1,624,032 1,310,927 1,095,563 1,000,244 751,614 257,676 $ 51,123,627 Debt Service Payments are to be made from future User fees. Interest 2,201,317 $ 1,891,743 1,708,753 I,529,867 1,350,964 1,172,757 1,031,916 894,410 767,902 647,146 542,575 445,159 353,147 269,409 197,057 139,162 89,470 44,865 11,274 $ 15,288,893 Total 7,503,599 6,732,652 6,289,235 6,040,849 5,748,074 4,638,383 4,385,433 3,968,358 3,574,719 3,083,530 2,804,718 2,593,094 2,258,583 1,893,441 1,507,984 1,234,725 1,089,714 796,479 268,950 66,412,520 ,11 Exhibit A-14 CITY OF OSHKOSH (4 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR SEWER UTILITY ➢ecember 31, 2007 Calendar 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Principal $ 1,469,594 $ 1,391,496 1,278,132 1,001,787 901,815 845,589 869,501 837,596 821,280 807,402 843,631 863,554 802,674 697,399 592,672 553,291 467,339 342,351 249,154 $ 15,636,257 Debt Service Payments are made from the Utility User Fees. Interest 675,807 $ 585,618 530,705 483,376 443,490 407,632 374,074 339,090 304,808 269,257 234,046 198,680 162,114 127,521 96,707 71,234 46,236 26,010 10,900 $ 5,387,305 Total 2,145,401 1,977,114 1,808,837 1,485,163 1,345,305 1,253,221 1,243,575 1,176,686 1,126,088 1,076,659 I,077,677 1,062,234 964,788 824,920 689,379 624,525 513,575 368,361 260,054 21,023,562 92 Exhibit A-14 CITY OF OSHKOSH (5 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR STORM WATER UTILITY December 31, 2007 Calendar Year Principal Interest Total 2008 $ 252,899 $ 183,808 $ 436,707 2009 262,379 176,351 438,730 2010 270,347 167,288 437,635 2011 282,448 157,508 439,956 2012 293,126 145,295 438,421 2013 285,589 132,550 418,139 2014 295,056 121,284 416,340 2015 283,330 109,524 392,854 2016 263,916 97,888 361,804 2017 270,138 86,766 356,904 2018 282,531 75,372 357,903 2019 295,892 63,150 359,042 2020 308,286 50,038 358,324 2021 322,035 36,048 358,083 2022 336,752 21,172 357,924 2023 93,931 5,402 99,333 2024 0 0 0 2025 0 0 0 $ 4,398,655 $ 1,629,444 $ 6,028,099 Debt Service Payments are made from the Utility User Fees. 93 Exhibit A-14 CITY OF OSHKOSH (6 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR WATER UTILITY December 31, 2007 Calendar 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Principal $ 1,206,502 1,262,481 1,157,446 977,468 763,037 798,724 772,085 771,398 778,242 658,790 628,255 628,059 574,235 597,748 446,777 317,855 224,990 88,512 93,170 $ 12,745,774 Debt Service Payments are made from the Utility User Fees. Interest $ 540,858 476,222 428,622 386,638 348,262 317,399 285,329 254,007 221,967 188,683 159,928 132,562 104,964 79,104 51,872 32,251 17,442 7,948 4,076 $ 4,038,134 Total $ 1,747,360 1,738,703 1,586,068 1,364,106 1,111,299 1,116,123 1,057,414 1,025,405 1,000,209 847,473 788,183 760,621 679,199 676,852 498,649 350,106 242,432 96,460 97,246 $ 16,783,908 94 Exhibit A-14 CITY OF OSHKOSH (7 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR PARKING UTILITY December 31, 2007 Calendar Year Principal Interest Total 2008 $ 51,143 $ 13,909 $ 65,052 2009 50,889 12,197 63,086 2010 50,500 10,477 60,977 2011 50,000 8,706 58,706 2012 48,667 6,817 55,484 2013 48,666 4,953 53,619 2014 58,000 2,967 60,967 2015 27,222 1,232 28,454 $ 385,087 $ 61,258 $ 446,345 Debt Service Payments are made from User Fees. 95 Exhibit A-14 CITY OF OSHKOSH (8 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR TRANSIT SYSTEM December 31, 2007 Calendar Year Principal Interest Total 2008 $ 92,505 $ 16,506 $ 109,011 2009 95,116 13,206 108,322 2010 99,349 9,688 109,037 2011 104,250 5,966 110,216 2012 46,647 1,916 48,563 2013 1,200 140 1,340 2014 1,240 96 1,336 2015 1,320 50 1,370 $ 441,627 $ 47,568 $ 489,195 Debt Service Payments are made from User Fees. 96 Exhibit A-14 CITY OF OSHKOSH (9 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR INDUSTRIAL PARK December 31, 2007 Calendar Year Principal Interest 2008 $ 233,629 $ 51,341 2009 241,675 43,151 2010 42,709 37,853 2011 44,845 35,717 2012 46,995 33,567 2013 49,437 31,125 2014 51,909 28,653 2015 54,504 26,058 2016 57,165 23,397 2017 60,087 20,474 2018 63,092 17,470 2019 66,246 14,316 2020 69,528 11,033 2021 73,035 7,527 2022 77,503 3,875 $ 1,232,359 $ 385,557 Debt Service Payments are made from land sales. Total 284,970 284,826 80,562 80,562 80,562 80,562 80,562 80,562 80,562 80,561 80,562 80,562 80,561 80,562 81,378 $ 1,617,916 97 Exhibit A-14 CITY OF OSHKOSH (10 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR TAX INCREMENTAL FINANCING DISTRICTS December 31, 2007 Calendar 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Principal $ 2,198,555 2,188,057 2,278,870 1,910,510 1,860,283 1,826,972 1,924,814 2,016,762 2,028,877 2,137,086 2,247,738 2,344,056 2,304,558 2,180,921 963,820 831,098 487,367 392,306 $ 32,122,650 Debt Service Payments are to be made from future User fees. Interest $ 1,588,122 1,468,194 1,377,755 1,280,047 1,189,454 1,099,125 1,009,683 913,712 812,587 710,596 602,178 487,171 363,236 242,997 123,322 79,832 42,183 19,094 $ 13,409,288 Total $ 3,786,677 3,656,251 3,656,625 3,190,557 3,049,737 2,926,097 2,934,497 2,930,474 2,841,464 2,847,682 2,849,916 2,831,227 2,667,794 2,423,918 1,087,142 910,930 529,550 411,400 $ 45,531,938 98 Exhibit A-14 CITY OF OSHKOSH (I I OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR CABLE TV ➢ecember 31, 2007 Calendar Year Principal Interest Total 2008 $ 61,954 $ 12,435 $ 74,389 2009 63,207 10,530 73,737 2010 65,340 8,410 73,750 2011 68,431 6,158 74,589 2012 70,566 3,674 74,240 2013 5,852 982 6,834 2014 6,000 746 6,746 2015 6,222 506 6,728 2016 6,444 258 6,702 $ 354,0I6 $ 43,699 $ 397,715 Debt Service Payments are made from PEG Access Fees. 99 Exhibit A-14 CITY OF OSHKOSH (12 OF 12) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS GENERAL OBLIGATION DEBT OBTAINED FOR GOLF COURSE December 31, 2007 Calendar Year Principal Interest Total 2008 $ 70,000 $ 54,150 $ 124,150 2009 1,070,000 50,824 1,120,824 $ 1,140,000 $ 104,974 $ 1,244,974 Debt Service Payments are made from the Utility User Fees. 100 Exhibit A-15 CITY OF OSHKOSH (1 OF 6) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS. REVENUE BONDS (Includes Amounts Issued to Other Funds) December 31, 2007 Calendar Year Principal Interest Total 2008 $ 4,100,210 $ 1,722,863 $ 5,823,073 2009 4,314,828 1,589,078 5,903,906 2010 4,482,160 1,445,460 5,927,620 2011 4,287,286 1,294,645 5,581,931 2012 4,185,290 1,155,381 5,340,671 2013 4,088,697 1,024,459 5,113,156 2014 4,219,369 893,972 5,113,341 2015 2,973,084 781,207 3,754,291 2016 3,065,707 687,038 3,752,745 2017 3,169,928 589,670 3,759,598 2018 3,295,789 488,725 3,784,514 2019 2,597,880 392,016 2,989,896 2020 1,534,168 319,074 1,853,242 2021 1,599,738 259,984 1,859,722 2022 1,206,790 199,963 1,406,753 2023 1,256,625 149,620 1,406,245 2024 1,311,575 97,024 1,408,599 2025 1,155,000 44,320 1,199,320 2026 0 0 0 TOTAL REVENUE DEBT $ 52,844,124 S 13,134,499 $ 65,978,623 101 Exhibit A-15 CITY OF OSHKOSH (2 OF 6) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS REVENUE DEBT OBTAINED FOR TAX INCREMENTAL FINANCING DISTRICTS December 3l, 2007 Calendar Year Principal Interest Total 2008 $ 215,000 $ 31,253 $ 246,253 2009 220,000 24,802 244,802 2010 225,000 17,376 242,376 2011 235,000 9,164 244,164 2012 0 0 0 $ 895,000 $ 82,595 $ 977,595 102 Exhibit A-15 CITY OF OSHKOSH (3 OF 6) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS REVENUE DEBT OBTAINED FOR WATER UTILITY December 31, 2007 Calendar Year Principal Interest Total 2008 $ 1,839,504 $ 1,051,837 $ 2,891,341 2009 1,979,619 994,755 2,974,374 2010 2,070,865 932,528 3,003,393 2011 2,133,273 867,124 3,000,397 2012 2,206,873 799,711 3,006,584 2013 2,261,701 729,852 2,991,553 2014 2,332,793 658,312 2,991,105 2015 2,3 95,182 584,454 2,979,636 2016 2,468,905 508,644 2,977,549 2017 2,554,002 430,445 2,984,447 2018 2,660,508 349,412 3,009,920 2019 1,943,007 273,402 2,216,409 2020 1,061,711 219,404 1,281,115 2021 1,112,671 177,450 1,290,121 2022 700,000 135,450 835,450 2023 735,000 103,950 838,950 2024 770,000 70,876 840,876 2025 805,000 36,226 841,226 2026 0 0 0 $ 32,030,614 $ 8,923,832 $ 40,954,446 Debt Service Payments are made from the Utility User Fees. 103 Exhibit A-15 CITY OF OSHKOSH (4 OF 6) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS REVENUE DEBT OBTAINED FOR OSHKOSH CENTRE December 31, 2007 Calendar Year Principal Interest 2008 $ 295,000 $ 45,970 2009 310,000 32,400 2010 325,000 16,900 2011 0 $ 930,000 $ 95,270 Total $ 340,970 342,400 341,900 0 $ 1,025,270 104 Exhibit A-1 5 CITY OF OSHKOSH (5 OF 6) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS REVENUE DEBT OBTAINED FOR SEWER UTILITY December 31, 2007 Calendar Year 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Principal $ 1,570,706 1,620,209 1,671,295 1,724,013 1,778,417 1,616,996 1,666,576 352,902 361,802 370,926 380,281 389,873 192,457 197,067 201,790 206,625 211,575 $ 14,513,510 Interest $ 410,791 360,497 308,595 255,034 199,760 146,896 96,549 66,542 57,530 48,291 38,818 29,105 21,882 17,216 12,438 7,545 2,535 $ 2,080,024 Total $ 1,981,497 1,980,706 1,979,890 1,979,047 1,978,177 1,763,892 1,763,125 419,444 419,332 419,217 419,099 418,978 214,339 214,283 214,228 214,170 214,110 $ 16,593,534 105 Exhibit A-15 CITY OF OSHKOSH (6 OF 6) WINNEBAGO COUNTY, WISCONSIN ANNUAL PRINCIPAL AND INTEREST REQUIREMENTS REVENUE DEBT OBTAINED FOR STORM WATER UTILITY December 31, 2007 Calendar 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Principal $ 180,000 185,000 190,000 195,000 200,000 210,000 220,000 225,000 235,000 245,000 255,000 265,000 280,000 290,000 305,000 315,000 330,000 350,000 $ 4,475,000 Interest $ 183,012 176,624 170,061 163,323 155,910 147,711 139,111 130,211 120,864 110,934 100,495 89,509 77,788 65,318 52,075 38,125 23,613 8,094 $ 1,952,778 Total $ 363,012 361,624 360,061 358,323 355,910 357,711 359,111 355,211 355,864 355,934 355,495 354,509 357,788 355,318 357,075 353,125 353,613 358,094 $ 6,427,778 106 `C `C N- 7 N N 0 - 0 00DCDOCD D -, fn a�yQQoµg O>.gmac • m 3 m o v c m y f) c O (0 0 0 0 O•�D c 0 3 m= m cn (D a m a cn c o 0 =1O 8'g o� CDC 0 N m3 3 * a 8 w CD- -wD3 30 -s 6/0(Q= .. 0 c 3 �o(D m T o Q CD a - co O c O y CO7 � 0w •2o .,D O Iii < w N � a C b 3Co Q O 0 0 ro 0 04' 0 N W A •0000 O 0 00 O O Q O 0000 0000 0000 0000 0000 0 0000 Year 2007: 2006 v 2005 En 2004 a C 2003 2002 0 m 2001 2000 1999 1998 0 (D O Q n 0 CD m .- N N N N N N N N 0 o O O o 00 0 0 00 0 O — N w - cr n LA NN w W A ICJ� U (fin 01 - ) - W O A LA 00 c. N N L CM Ui <A O O N N N - N N ) N N N - 0 r N 0 - N ON O O - O CC O �] W 0Ui 0 Vii �+ A 0 N v NG1 o .. O CDCD v" 0 00 w 00 In In - V1 N r+ 00 N w 00 4). w 01 u N N vi J 00 - O O p O - w CM O O O W W W W W W W W W N W. r-+ U) N . \O 00 n (�D O O - N -) C1 01 -) N 01 0 0, 01 N .P -.l '.D W Ci 00 -1 (D . 4 m w ) m w w w a' C° a txj R O O O O O O O 0 0 0 ^- A CA C-, C 01 t/1 .P W N tN.) W C1 — 0 Ili. O O IA 10 -.7 (D 0 10 00 N 00 -) C1 ? C' `o •A W N U) W Ui C' v, cn . 4 O 0 e o CD CD " a N 00 00 CMO w C1 N C' — 00 — -1 C1 0 — N +n O 0 2, w 00 V' (D co O In 00 w (A O "P .A O W ceo c N r 10 O to N C1 v CO N N N N N N N W W w p O C �-' N N W W W to O O — C' N..) O U) 1N0 W w J O O V N '0 N 0 W v C1 C, — �D Vr N 00 00 ST N 2' 0 0 0 0 0 0 0 0 Co _ a. 00 O' 107 Exhibit A-17 CITY OF OSHKOSH, WISCONSIN (1 of 2) PRINCIPAL EMPLOYERS CURRENT YEAR AND TEN YEARS AGO Percentage Percentage of Total of Total City City Manufacturing 2007 Rank Employment 1997 Rank Employment Axel Tech International / Rockwell 250 5 0.78% 450 5 n/a Arrowhead Conveyor Co., Inc. 110 14 0.34% 197 12 n/a Baldor Generators 132 10 0.41% Bemis (includes; Milprint (formerly Banner), Curwood, and Perfect Seal 1,880 2 5.85% 1,885 1 n/a Buckstaff Company 88 18 0.27% 210 11 n/a GE Oil & Gas Operations 415 5 1.29% General Beverage 189 8 0.59% Hoffmaster, A Solo Cup Company / Scott 617 4 I.92% 471 4 n/a Jeld-Wen Premium Wood Doors / Morgan Products Ltd 200 7 0.62% 381 7 n/a Lapham-Hickey Steel 200 7 0.62% Leach Company 394 6 n/a Marvel Manufacturing 106 15 0.33% *Miles Kimball Company 1,500 3 4.67% 350 8 n/a * includes 400 FT, 1100 PT and seasonal Muza Metal Products 150 9 0.47% 100 17 n/a Nercon Engineering 114 12 0.35% 150 14 n/a Newark Paperboard Products 112 13 0.35% O E C Graphics 104 16 0.32% Oshkosh B'Gosh 530 3 n/a Oshkosh Coil Spring, Inc. 112 13 0.35% Oshkosh Door Co. 117 I 1 0.36% 107 16 Oshkosh Truck Corporation 2,712 1 8.44% 1,587 2 n/a Pluswood, Inc. 102 17 0.32% 188 13 n/a SNC Manufacturing Company 300 9 n/a Seven -Up Bottling Co. of Oshkosh, Inc. 140 15 n/a Square D 260 10 n/a TOTAL 9,210 28.66% 7,700 0.00% Non -Manufacturing 4imprint 338 8 1.05% Affinity Health System 803 1 2.50% 1,200 1 n/a Aurora Medical Group 1,079 2 3.36% Clarity Care 500 4 1.56% 220 6 n/a EAA 225 10 0.70% 274 4 n/a Eastbay, Inc. 350 6 1.09% Evergreen Retirement Community 275 9 0.86% 248 5 n/a Lutheran Homes of Oshkosh 342 7 1.06% 290 3 n/a Northpoint Med & Rehab 195 11 0.61% 205 7 n/a Oshkosh Community YMCA 350 6 1.09% U S Bank 750 3 2.33% 325 2 n/a Wal-Mart 431 5 1.34% 185 8 n/a TOTAL 5,638 17.55% 2,947 0.00% 108 Exhibit A-17 (2 of 2) Government City of Oshkosh 650 5 2.02% 575 4 n/a CESA6 289 8 0.90% Oshkosh Correctional Institution 524 6 1.63% Oshkosh Public Schools 1,580 2 4.92% 1,254 2 n/a Oshkosh Post Office 341 7 1.06% 364 5 n/a University of Wisconsin - Oshkosh 1,632 1 5.08% 1,475 1 n/a Winnebago County 1,047 3 3.26% 1,100 3 n/a Winnebago Mental Health Institute 750 4 2.33% TOTAL 6,813 21.20% 4,768 0.00% Source: Oshkosh Chamber of Commerce, source: 2000 Census, Total Employees 32,131 109 Exhibit A -17a CITY OF OSHKOSH, WI Winnebago, Outagamie, and Calumet Counties LABOR The cities of Oshkosh and Appleton form a standard metropolitan statistical area encompassing a three county area - Winnebago,Outagamie, and Calumet Counties, having a combined population of 384,507. Within a 50 mile radius of Oshkosh reside a total of over 1,262,527 persons. Oshkosh is, therefore, well supplied with a large growing labor pool as well as substantial retail, wholesale, and industrial markets. Numerically presented, the employment mix averaged as follows for 2006. Place of Residence Data Total Civilian Labor Force 214,426 Unemployment 9,322 Percent of Civilian Labor Force 4.40% Employment 205,104 Place of Work Nonfarm Wage and Salary 215,300 Total Private 191,000 Goods Producing 60,600 Nat Res., Mining, & Construction 12,900 Manufacturing 47,700 Service Producing 154,700 Trade 37,900 Wholesale Trade 7,600 Retail Trade 23,100 Transportation, Warehouse, and Utilities 7,200 Information 3,700 Finance Activities 11,600 Professional & Business Services 24,500 Educational & Health Services 24,100 Leisure & Hospitality 17,700 Other Services, except Public Admin 10,900 Government 24,300 Federal 1,000 State 4,700 Local 18,600 Persons Involved in L -M Disputes 0 Source: State of Wisconsin - Department of Administration 110 Exhibit A-18 CITY OF OSHKOSH, WISCONSIN NUMBERS OF FULL-TIME EMPLOYEES AUTHORIZED Last Ten Fiscal Years ACCOUNT PURPOSE 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 002 Manager 2 2 2 2 2 2 2 2 2 2 003 Attorney 3 3 3 3 3 3 3 3 3 3 004 Personnel 3 3.5 4 4 4 4 4 5 5 5 005 Clerk 3 3 3 3 3 3 3 3 3 3 007 Collection 14 14 14 14 14 14 14 14 14 14 008 Assessor 6 6 6 6 6 6 6 6 6 6 009 Purchasing 3 2.5 3 3 3 3 3 3 2 2 010 Cent.Srvs. 1 1 1 1 1 1 1 1 1 1 011 Computers 6 7 9 9 7 7 7 7 7 7 015 Media Srvcs 2 3 3 3 3 3 3 3 3 3 016 Safety 1 1 1 1 1 1 1 1 1 1 013 Facilities 3 3 3 3 3 3 4 4 4 4 021 Police 114 116 118 118 118 117 118 117 116 116 022 Anml. Contr. 0 0 0 0 0 0 0 0 0 0 023 Fire 104 104 104 103 103 103 109 109 108 108 031 Health 6 6 6 6 6 6 6 6 6 6 032 Laboratory 0 0 0 0 0 0 0 0 0 0 033 Nurses 3 3 3 3 3 3 3 3 3 3 041 Public Wrks. 3 3 3 3 3 3 3 3 3 3 042 Engineers 12 12 12 12 12 12 13 13 12 11 043 Streets 40 40 40 40 37 40 34 33 32 30 045 Garage 7 7 8 8 8 8 8 8 8 8 050 Garbage 13 13 13 13 13 13 13 13 11 11 051 Recycling 9 9 9 9 7 7 7 7 7 7 061 Parks 17 17 17 17 16.5 16.5 16.5 16.5 15.5 15.5 062 Forestry 3 3 3 3 4 4 4 4 4 4 063 Golf 0 0 2 2 2 2 2 2 2 2 065 Cemetery 4 4 4 4 4 4 4 4 4 4 074 Planning 7 7 7 7 7 9 9 9 9.5 9.5 075 Codes 7 9 10 10 10 10 10 10 10.5 10.5 080 Transportation 7 7 7 7 7 7 7 7 7 7 771 Library 37.2 38.88 38.9 37.1 36.4 36.4 36.9 35.9 32.5 31.6 772 Museum 9 9 10 10 10 10 10 10 10 9 728 Transit 26 28 28 28 28 28 28 28 28 28 773 Conv & Tour 0 0 0 0 0 0 0 0 0 0 717 Parking 3 3 3 3 3 3 2 2 2 2 1810 Water 28.5 31.5 32.5 32 33 33 31 31 31 31.33 1910 Sewer 30.5 33.5 33.5 33 36 32.5 34 34 34 32.33 2010 Storm 0 0 0 0 7.5 2 7 7 7 7 076 Senior Services 3 4 5 5 5 5 6 6 6 6 079 Housing 15 15 15 15 17 16 14 14 0 0 1020 Grand 0 0 0 0 0 0 0 0 0 0 1040 Conv. Ctr. 0 0 0 0 0 0 0 0 0 0 255 Parks Rev. 0 0 0 0 0.5 0.5 0.5 0.5 0.5 0.5 TOTAL 555.20 571.88 583.90 580.10 586.90 580.90 586.90 584.90 560.50 554.26 Source: City of Oshkosh Finance Department In' (� n Oy E'- G .y C w O() h ro O icy C "� C r A 0) C) C) Qq ti CA 0 yvy� > a CD `C TI y LrYLyJ 0 OQ N i"; 0 ��• H V •• _ '+ VA. U W O Co 0 N N UI 00 O U, A U U Co — N 0 N N U A -t N J N N A N -t w ON A Co N W U) w ? V A N �O A O oo -t O U) A A w v, Co U N J , C' v N N w N N O1 .-• w O' ) w 4 C\ 4 UI -) A a1 C1 A O 0'. W 0'. N -7 A 0 C+ 0 �P w oo A A N O A- A -1 A .- "A* w v N N -.N Co W U '0 69 b9 N ,.. Co .- ... A r-� U, W -) W -7 O O N A ON N '0 N A 00 U '0 -4 A N N.3'0 N A W v U UI* W W. N U Co 0) W '0 U A N T VD O v. 00 r N A B V, VI +l 01 U .) N v, W CO w 0'. O D W U W N �O v W O+ 1- U- 10 00 -1 ---3-4 A N A D0 - v W . A A - A O ON U) U U U N 00 - v '0 -3 w A Co O 00 00 00 O b9 E� A ..•• o N U b - U �l a+ '0 NJ a-• U) A J- U r+ N l.l, V?' 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O N \0 O O O a a 0+ '.0- U ■r. 113 CITY OF OSHKOSH, WISCONSIN Exhibit A-21 TAX ROLL COLLECTIONS COLLECTIONS IN 2007 OF 2006 TAX ROLL COLLECTION APPLIED REAL ESTATE CITY OF OSHKOSH SETTLED WITH RETAINED BY TURNED OVER LEVY OTHER UNITS CITY TO THE COUNTY GENERAL PROPERTY TAXES State Taxes County Taxes Schools: Board of Education Vocational School Debt Service: City Debt Legislative Trust Funds: Police Pension Firemen's Pension Workmen's Comp. Other Funds: Library Museum Transit Recycling Street Lighting Grand Opera House Cemetery Committee on Aging Health Services Golf Course Pollock Community Water Park Equipment TID General City Special District Overrun Special Assessments R. kZIXM:ICltOI 97.18 % $ 624,844.01 $ 607,210.61 17,887,004.83 17,382,224.80 29,968,443.12 $ 16,013,767.00 16,013,767.00 $ 0.00 0.00 41,619.00 41,619.00 Source: City of Oshkosh Finance Department 2,395,035.00 747,917.00 516,422.00 845,398.00 1,267,360.00 67,011.00 198,291.00 374,458.00 354,197.00 0.00 15.950.00 S 522,413.43 23,680,460.14 5,442,258.84 845,724.14 6,782,039.00 4,749,546.98 $ 4,615,512.44 134,034.54 2,760,572.00 24,875,609.00 722,388.00 30,387.97 29,530.41 857.56 11,708.37 11,377.95 330.42 $ 78,869,932.28 $ 47,112,154.39 $ 29,532,029.80 $ 2,225,748.09 2,289,039.34 2,048,537.95 240,501.39 $ 81,158,971.62 $ 47,112,154.39 $ 31,580,567.75 S 2,466,249.48 114 Exhibit A-22 CITY OF OSHKOSH, WISCONSIN RATIO OF DEBT TO ASSESSED VALUATION AND POPULATION 1994-2007 DEBT RATIO OF DEBT TO PER ASSESSED VALUATION CAPITA 1994 Valuation - $1,316,234,100 Population - 57,389 1994 Direct Municipal Debt $ 60,364,629 4.59% $ 1,051.85 1995 Valuation - $1,882,114,900 Population - 59,068 I995 Direct Municipal Debt $ 65,308,825 3.47% $ 1,105.65 1996 Valuation - $1,937,658,900 Population - 60,240 1996 Direct Municipal Debt $ 68,571,473 3.54% $ 1,138.30 1997 Valuation - $1,987,591,500 Population - 61,824 1997 Direct Municipal Debt $ 68,577,442 3.45% $ 1,109.24 1998 Valuation - $2,046,447,600 Population - 62,185 1998 Direct Municipal Debt $ 69,932,059 3.42% $ 1,124.58 1999 Valuation - $2,072,830,600 Population - 62,695 1999 Direct Municipal Debt $ 72,463,863 3.50% $ 1,155.82 2000 Valuation - $2,140,360,100 Population - 63,192 2000 Direct Municipal Debt $ 79,645,557 3.72% $ 1,260.37 115 Exhibit A-22 CITY OF OSHKOSH, WISCONSIN RATIO OF DEBT TO ASSESSED VALUATION AND POPULATION 1994-2007 DEBT RATIO OF DEBT TO PER ASSESSED VALUATION CAPITA 2001 Valuation - $2,203,128,900 Population - 63,225 2001 Direct Municipal Debt $ 86,605,140 3.93% $ 1,369.79 2002 Valuation - $2,266,847,900 Population - 64,132 2002 Direct Municipal Debt $ 101,116,094 4.46% $ 1,576.69 2003 Valuation - $2,924,336,700 Population - 64,327 2003 Direct Municipal Debt $ 112,645,337 3.85% $ 1,751.14 2004 Valuation - $3,141,524,900 Population - 65,095 2004 Direct Municipal Debt $ 113,006,301 3.60% $ 1,736.02 2005 Valuation - $3,335,517,300 Population - 65,445 2005 Direct Municipal Debt $ 115,334,666 3.46% $ 1,762.31 2006 Valuation - $3,558,114,300 Population - 65,510 2006 Direct Municipal Debt $ 118,945,768 3.34% $ 1.815.69 2007 Valuation - $3,722,810,200 Population - 65,810 2007 Direct Municipal Debt $ 119,580,048 Source: City of Oshkosh Finance Department 3.21% $ 1,817.05 116 Exhibit A-23 CITY OF OSHKOSH, WISCONSIN COMPUTATION OF LEGAL DEBT MARGIN COMPUTATION OF OVERLAPPING DEBT See Exhibit A-11 (1 of 2) for these computations 117 Exhibit A-24 CITY OF OSHKOSH, WISCONSIN RATIO OF ANNUAL DEBT SERVICE FOR GENERAL BONDED DEBT TO TOTAL GENERAL GOVERNMENTAL EXPENDITURES 1994-2007 GENERAL ANNUAL DEBT GOVERNMENTAL YEAR SERVICE EXPENDITURES RATIO 1994 7,124,453 34,326,283 20.76 1995 7,397,974 35,824,855 20.65 1996 7,506,541 37,518,214 20.01 1997 8,347,938 39,264,566 21.26 1998 9,052,617 41,153,274 22.00 1999 8,929,755 42,675,721 20.92 2000 9,163,772 44,163,129 20.75 2001 10,930,144 49,428, 628 22.11 2002 12,008,866 50,150,122 23.95 2003 13,685,051 52,554,291 26.04 2004 14,836,550 55,933,034 26.53 2005 15,394,793 57,244,818 26.89 2006 15,824,907 57,591,332 27.48 2007 16,330,462 58,138,612 28.09 Source: City of Oshkosh Finance Department (Exhibit A- 19) 118 CITY OF OSHKOSH, WISCONSIN Exhibit A-25 ECONOMICS Oshkosh's population growth has been steady. U.S. Census Bureau figures of population are as follows: POPULATION - CITY OF OSHKOSH 1994 Estimate 57,389 1995 Estimate 59,068 1996 Estimate 60,240 1997 Estimate 61,824 1998 Estimate 62,185 1999 Estimate 62,695 2000 Estimate 63,192 2001 Estimate 63,225 2002 Estimate 64,132 2003 Estimate 64,327 2004 Estimate 65,095 2005 Estimate 65,445 2006 Estimate 65,510 2007 Estimate 65,810 Source U S Census Bureau This growth is further reflected below by building permit statistics and utility connections. BUILDING PERMITS New Residential Total of All Permits Year No. Value No. Value 1994 241 16,735,517 1,806 46,783,816 1995 189 14,343,940 1,932 66,782,553 1996 319 25,269,402 1,836 66,522,056 1997 195 18,188,520 2,104 59,462,427 1998 182 19,658,460 2,537 84,198,862 1999 190 23,472,737 6,761 110,724,162 2000 132 18,001,065 8,418 98,804,851 2001 156 26,565,183 8,335 92,278,720 2002 198 32,254,156 7,203 162,568,019 2003 202 36,568,505 6,631 108,739,312 2004 152 26,630,612 6,198 94,001,548 2005 87 13,660,642 5,477 74,563,467 2006 77 17,872,562 5,237 98,876,033 2007 69 21,982,261 5,217 121,914,846 Source: City of Oshkosh Inspections Department UTILITY CUSTOMERS AT YEAR END - CITY OF OSHKOSH 1999 2000 2001 2002 2003 2004 2005 2006 2007 Water 21,525 21,621 22,168 19,246 22,351 22,500 23,200 23,200 23,298 Telephone 48,251 48,305 Electric 37,631 38,546 38,916 39,648 40,595 41,736 44,531 41,659 42,492 Gas 28,956 29,051 29,424 30,075 30,779 31,168 31,611 31,494 32,123 Source: City of Oshkosh Water Distribution Source: Wisconsin Public Service Corporation 119 Exhibit A-26 City of Oshkosh, Wisconsin NEW DWELLING UNITS CONSTRUCTED 1991-2007 YEAR TOTAL UNITS SINGLE FAMILY TWO FAMILY MULTIPLE FAMILY 1991 144 114 9 21 1992 338 138 10 180 1993 500 174 6 320 1994 417 165 19 214 1995 263 144 32 87 1996 532 202 42 288 1997 394 119 22 253 1998 384 144 22 218 1999 383 157 20 206 2000 275 109 20 146 2001 442 121 10 311 2002 364 157 44 163 2003 529 153 36 340 2004 303 112 20 171 2005 134 63 30 41 2006 234 51 12 171 2007 198 58 0 140 5,834 2,181 354 3,270 Source: City of Oshkosh Department o€ Community Development 120 Exhibit A-27 CITY OF OSHKOSH, WISCONSIN BUDGET FOR 2008 - EXPENDITURES PrlYR1JL1 .•; 1A:lt31 s; C C3NIRAC-. � `:;:;'- � �'-' � � �...... ............................................. . ::1JT1LTS'•E F.IIiFT'•Al'I1 .....ToTAL E: ::: : :.:::::::: CHARS SUPPLIES OUTLAY _ ::13 DQ'T I�•P.iB{7R�:`: °:I.tiBfQi�:::::::$I�R�FICS :..........1.1Q�RS...L1 GENERAL GOVENRNMENT City Council City Manager City Attorney Personnel City Clerk Elections Finance Assessor Purchasing Central Services Information Technology Division Insurance Facilities Maintenance Independant Audit Media Services Safety TOTAL GENERAL GOVERNME PUBLIC SAFETY Police Animal Care Fire & Ambulance Hydrant Rental Aux. Police Crossing Guards Police & Fire Commission TOTAL PUBLIC SAFETY 17,400 1,331 23,700 0 0 800 0 43,231 152,147 60,142 9,790 0 0 660 0 222,739 233,829 91,495 55,235 0 0 6,430 0 386,989 281,884 100,777 128,510 0 0 3,550 0 514,721 137,136 56,809 25,650 0 0 3,010 0 222,605 85,949 729 16,455 0 0 4,000 0 107,133 667,289 324,647 3,820 0 0 4,400 0 1,000,156 321,159 152,508 36,876 0 0 3,975 0 514,518 117,142 53,079 3,850 0 0 1,300 0 175,371 28,452 20,458 110,500 0 0 14,700 0 174,110 373,737 177,858 251,504 55,500 0 31,839 133,054 I,023,492 0 0 0 0 618,095 0 0 618,095 164,516 92,014 50,650 163,200 170 33,600 0 504,150 0 0 21,000 0 0 0 0 21,000 169,052 85,284 2,225 500 0 2,140 0 259,201 0 0 0 0 0 0 0 0 2,749,692 1,217,131 739,765 219,200 618,265 110,404 133,054 5,787,511 7,163,291 3,503,154 172,360 36,694 100 153,708 116,200 11,145,507 0 0 72,391 0 0 0 0 72,391 6,883,916 2,880,171 108,855 122,648 0 197,270 23,100 10,215,960 0 0 650,000 0 0 0 0 650,000 0 0 1,325 0 0 310 3,400 5,035 88,632 6,780 300 0 0 1,200 0 96,912 0 0 12,000 0 0 200 0 12,200 14,135,839 6,390,105 1,017,231 159,342 100 352,688 142,700 22,198,005 PUBLIC WORKS I Public Works - Admin. 231,646 90,203 3,900 0 120 1,400 0 327,269 Engineering 692,887 270,324 18,550 8,000 180 14,550 28,700 1,033,191 Streets - General 1,389,767 730,423 43,050 3,400 450 276,750 19,841 2,463,681 Central Garage 385,823 195,215 145,800 109,969 1,110 930,275 3,420 1,771,612 Garbage Coll. & Disposal 492,260 245,509 418,287 0 1,200 70,570 0 1,227,826 TOTAL PUBLIC WORKS 3,192,383 1,531,674 629,587 121,369 3,060 1,293,545 51,961 6,823,579 PARKS & OTHER FACILITIES Parks Forestry Pollock Pool 793,470 359,428 26,975 147,885 200 80,906 3,000 1,411,864 181,337 80,456 4,700 200 200 5,550 2,000 274,443 0 0 0 0 0 0 0 0 TOTAL PARKS & OTHER FAC. 974,807 439,884 31,675 148,085 400 86,456 5,000 1,686,307 121 Exhibit A-27 COMMUNITY DEVELOPMENT Planning Services 576,280 255,747 6,937 275 0 5,582 0 844,821 Housing Services 0 0 0 0 0 0 0 0 Inspection Services 557,091 235,477 21,900 2,300 210 10,885 0 827,863 TOTAL COMMUNITY DEV. 1,133,371 491,224 28,837 2,575 210 16,467 0 1,672,684 DEPT. OF TRANSPORTATION Electric 262,741 125,318 9,000 29,750 0 35,535 0 462,344 Sign 99,929 47,872 3,225 4,660 0 32,547 0 188,233 TOTAL DEPT. OF TRANS. 362,670 173,190 12,225 34,410 0 68,082 0 650,577 UNCLASSIFIED Unemployment Compensation 25,000 25,000 Direct Deposit Fees 2,175 2,175 Uncollectible Accounts 165,000 165,000 Employee Benefit Fees 14,500 14,500 Patriotic Celebration 8,000 8,000 Adjustment of Salaries 0 Unclassified Expenses 125,000 125,000 Mobile Trailer Tax 37,000 37,000 Safety Building 0 Industrial Development 37,500 37,500 TOTAL UNCLASSIFIED 0 25,000 352,175 0 37,000 0 0 414,175 22,548,762 10,268,208 2,811,495 684,981 659,035 1,927,642 332,715 39,232,838 TOTAL BUDGET Budget for Recycling 338,061 168,015 758,725 0 100 12,050 208,000 1,484,951 Budget for Street Lighting 0 0 32,000 1,141,771 0 21,000 0 1,194,771 Budget for Senior Services 348,358 169,095 13,909 52,273 7,561 12,798 0 603,994 Budget for Transit Utility 1,186,558 907,496 1,583,704 44,000 126,580 355,250 0 4,203,588 Budget for Library 1,717,712 848,342 445,904 155,887 13,749 449,753 I3,600 3,644,947 Budget for Museum 504,799 285,037 42,160 81,944 9,750 42,648 0 966,338 Budget for Grand Opera House 0 0 59,646 0 6,911 0 0 66,557 Budget for Cemetery 231,534 113,948 8,250 19,900 7,588 9,950 800 391,970 Budget for Health Services 629,203 250,476 27,270 3,750 10,250 36,760 0 957,709 Budget for Pollock Comm Wtr Pk 51,000 3,902 143,638 76,000 3,865 48,200 0 326,605 Budget for Equipment Fund 0 0 0 0 0 0 0 0 TOTAL OPERATING BUDGET 27,555,987 13,014,519 5,926,701 2,260,506 845,389 2,916,051 555,115 53,074,268 122 Exhibit A-28 CITY OF OSHKOSH, WISCONSIN BUDGET FOR 2008 - REVENUES TAXES LEVIED BY CITY General Property Tax 23,554,616 24,322,868 25,597,997 25,597,997 26,605,671 Municipal Owned Utility 650,000 650,000 650,000 650,000 650,000 Snow Removal 8,217 9,952 9,000 9,000 9,000 Sealcoating 28,868 67,962 0 0 0 Weed Cutting 23,700 13,397 12,000 12,000 12,000 Mobile Home Tax 118,045 111,439 110,000 110,000 108,000 Payment in Lieu of Taxes 140,490 135,096 140,000 118,000 118,000 TIF District Closeout 0 0 0 0 3,000 TOTAL TAXES LEVIED 24,523,936 25,310,714 26,518,997 26,496,997 27,505,671 LICENSES & PERMITS Heating 77,113 89,021 85,000 100,000 90,000 Liquor License 127,391 123,172 125,000 126,000 125,000 Cigarette License 10,800 10,800 11,000 11,000 11,000 Sundry License 36,743 37,223 36,900 37,000 37,000 Electric Permits 91,008 101,777 92,000 110,000 100,000 Building Permits 258,994 346,281 310,000 380,000 360,000 Plumbing Permits 80,045 103,039 90,000 95,000 90,000 Flammable Tank Fees 1,185 160 1,000 680 700 Housing Fees 3,535 3,105 3,300 3,200 3,200 Code Seals & Plan. Fees 2,040 1,898 1,900 1,750 1,800 Engineering Permits 0 0 25,000 0 25,000 Zoning Ordinances 35,638 45,350 38,000 45,000 45,000 TOTAL LICENSES & PERMITS 724,492 861,826 819,100 909,630 888,700 FINES & COSTS County Court 363,704 287,182 340,000 310,000 310,000 Police Dept. 386,867 497,194 490,000 420,000 420,000 Penalties 93,317 80,992 78,000 115,000 90,000 TOTAL FINES & COSTS 843,888 865,368 908,000 845,000 820,000 STATE & COUNTY AIDS Town Aid - Cable TV 9,332 7,914 7,000 8,400 8,400 Town Ambulance Aid 146,188 159,884 155,692 174,934 160,362 Aid to Local Streets 2,740,615 2,767,382 2,843,000 2,843,111 3,007,999 Municipal Services 1,277,417 1,333,774 1,315,000 1,322,063 1,275,000 State Shared Aids 11,076,027 11,075,468 11,075,641 11,075,641 11,079,165 State Aids-Parks/Forestry 0 0 0 5,398 0 State Aids - Fire 0 33,000 40,000 40,000 45,000 Aids -Police 169,560 192,937 160,000 160,000 165,000 State Computer Credit 190,635 210,086 210,000 199,152 200,000 Expenditure Restraint 977,077 1,067,259 1,088,156 1,088,156 1,212,832 TOTAL STATE & CO. AIDS 16,586,851 16,847,704 16,894,489 16,916,855 17,153,758 USE OF MONEY & PROPERTY Interest on Investments 514,892 945,573 1,000,000 1,000,000 950,000 Interest on Spec. Assess. 218,688 214,436 220,000 215,000 220,000 Rent 80 4,983 2,000 2,036 2,000 Sale of Land 0 0 0 0 0 TOTAL USE OF MONEY & PROP. 733,660 1,164,992 1,222,000 1,217,036 1,172,000 123 Exhibit A-28 Police Dept. Fees 137,601 191,796 100,000 100,000 100,000 Fire Dept. Fees 63,243 79,771 80,000 103,000 94,000 Ambulance Fees 1,812,660 1,830,404 1,660,000 1,800,000 1,900,000 Engineering Fees 4,455 177,836 110,000 10,000 50,000 Street Services 336,770 135,099 80,000 75,000 75,000 Electrical Dept. 37,623 30,576 20,000 28,000 25,000 Sign Dept. 2,010 2,476 1,500 1,000 1,500 Park Fees 40,139 48,837 40,000 39,000 40,000 Forestry Fees 6 900 0 0 0 City Clerk Fees 7,141 7,124 7,500 6,100 6,500 Community Dev. 300,496 345,289 339,000 352,000 403,000 Cable Access Fees 2,149 8,978 13,000 12,000 13,000 CAN Revenue 614,408 636,471 640,000 658,000 658,000 Xerox Charges 1,916 2,370 1,500 2,300 2,300 Property Search 36,240 32,240 34,050 28,000 30,000 Hazardous Materials 1,837 0 1,500 0 1,500 Sanitation Recycling 0 399,081 0 0 0 Garbage Fees 22,137 24,736 21,000 22,000 21,000 TOTAL CHGS. FOR CUR. SERV. 3,420,831 3,953,984 3,149,050 3,236,400 3,420,800 INTERDEPARTMENTAL REVENUES I Service Charge -Streets 149,738 238,786 185,000 244,160 250,870 Serv.& Main. -San Sewer 84,753 177,595 133,000 181,590 186,580 Acct. Services -Utilities 599,516 627,613 658,000 641,730 659,380 Equipment/Labor Rental - Recycling 618,950 633,770 695,000 660,000 680,000 Computer Services - Utilities 120,000 123,600 127,300 127,300 130,800 Public Works -Water Util. 55,480 107,342 100,900 109,360 112,800 Water G.O. Bond Abatement 1,521,444 1,607,238 1,564,729 1,564,730 1,747,360 Sewer G.O. Bond Abatement 1,968,434 1,986,763 2,001,997 2,001,996 2,145,401 Storm G.O. Bond Abatement 374,789 327,014 428,903 428,905 436,707 Parking Utility Notes 62,844 58,168 60,381 60,381 65,052 Ind. Dev. Bonds & Notes 369,885 369,422 285,223 285,223 284,970 TIF Districts 3,193,314 3,213,697 3,742,852 3,742,845 3,786,677 Deltox Notes 84,280 89,930 0 0 0 Senior Center 80,557 0 0 0 0 Golf Course 123,176 125,325 122,238 122,237 124,150 Cable TV 66,003 66,755 67,381 67,383 67,796 Housing Authority 734,509 429,127 0 0 0 Engineering Fees-Const. 991,124 720,059 650,000 720,000 600,000 TOTAL INTER. DEP. REV. 11,198,796 10,902,204 10,822,904 10,957,840 11,278,543 UNCLASSIFIED Sundry Revenue 75,000 109,607 70,000 100,000 75,000 Bond Proceeds 35,000 30,054 30,000 30,000 30,000 Approp. from Sinking Fund 250,000 255,000 200,000 200,000 375,000 TOTAL UNCLASSIFIED 360,000 394,661 300,000 330,000 480,000 TOTAL REVENUES I 58,392,454 60,301,453 60,634,540 60,909,758 62,719,472 124 CITY OF OSHKOSH, WISCONSIN 2008 LEVY - 2007 TAX RATE State 0.77% City Tax 34.28% Area Vocatior 7.47% )unty .36% schools 33.12% EXHIBIT A-29 (1 OF 4) PER $1,000 2007 2006 INCREASE OF TAXES TAX RATE TAX RATE (DECREASE) State 0.77 % $ 0.18 $ 0.18 $ 0.00 County 24.36 5.67 5.47 0.20 Area Schools 33.12 7.71 7.45 0.26 Area Vocational 7.47 1.74 1.71 0.03 City Tax 34.28 7.98 7.82 0.16 100.00 $ 23.28 $ 22.63 $ 0.65 State Credit 1.20 1.08 0.12 $ 22.08 $ 21.55 $ 0.53 125 CITY OF OSHKOSH, WISCONSIN EXHIBIT A-29 (2 OF 4) REVENUES WHERE THE MONEY COMES FROM Surplus Added To Service Charges Budget 5.5% All Other Revenue 0.0% 2.6% Shared State Aids Other State and 17.7% County Aids 9.7% Licenses, Permits, Fines 2.7% Interdepartmental Charges 17.9% Interest on Investments 1.5% Property Tax Levy 42.4% 2008 2007 INCREASE WHERE THE MONEY COMES FROM AMOUNT PER CENT PER CENT (DECREASE) Shared State Aids $ 11,079,165 17.7 % 18.3 % (0.6) % Property Tax Levy 26,605,671 42.4 42.2 0.2 Interest on Investments 950,000 1.5 1.6 (0.1) Interdepartmental Charges 11,278,543 17.9 17.9 0.0 Licenses, Permits, Fines 1,708,700 2.7 2.8 (0.1) Other State and County Aids 6,074,593 9.7 9.6 0.1 Surplus Added To Budget 0 0.0 0.0 0.0 Service Charges 3,420,800 5.5 5.2 0.3 All Other Revenue 1,602,000 2.6 2.4 0.2 $ 62,719,472 100.0 % 100.0 % --- 126 CITY OF OSHKOSH, WISCONSIN EXHIBIT A-29 (3 OF 4) EXPENDITURES WHERE THE MONEY GOES Equipment Fund Library 0.0% 3.9% Agency Funds Public Works 0.0% 12.5% Community Debt Services Development 26.0% 3.3% General Government 9.2% Miscellaneous Parks & Community b. 0.7% Facilities � 3.1% Fire and Ambulance Transit Utility,. /o 17.3 4.0% Police Museum Health 18.1% 1.3% 0.6% 2008 2007 INCREASE WHERE THE MONEY GOES AMOUNT PER CENT PER CENT (DECREASE) Agency Funds $ 32,723 0.0 % 0.0 % 0.0 % Debt Services 16,277,535 26.0 26.4 (0.4) Miscellaneous 414,175 0.7 1.8 (1.1) Fire and Ambulance 10,872,060 17.3 16.9 0.4 Museum 823,338 1.3 1.2 0.1 Police 11,325,945 18.1 17.3 0.8 Health 392,821 0.6 0.7 (0.1) Transit Utility 2,444,856 4.0 4.0 0.0 Parks & Community Facilities 1,975,372 3.1 3.1 0.0 General Government 5,787,511 9.2 9.0 0.2 Community Development 2,045,161 3.3 3.2 0.1 Public Works 7,861,530 12.5 12.4 0.1 Equipment Fund 0 0.0 0.0 0.0 Library 2,466,445 3.9 4.0 (0.1) $ 62,719,472 100.0 % 100.0 % 127 CITY OF OSHKOSH, WISCONSIN EXHIBIT A-29 (4OF4) 2008 BUDGET - HOW THE MONEY GOES Materials & Supplies Capital Outlay Contractual Sei 8.54% Debt Retirement 23.46% Fixei Payroll - Indirect Labor 18.76% Payroll - Direct Labor 39.71% icy Funds ).05% AMOUNT PER CENT Payroll - Direct Labor $ 27,555,987 39.71 % Agency Funds 32,723 0.05 Payroll - Indirect Labor 13,014,519 18.76 Fixed Charges 845,389 1.22 Debt Retirement 16,277,535 23.46 Contractual Services 5,926,701 8.54 Utilities 2,260,506 3.26 Materials & Supplies 2,916,051 4.20 Capital Outlay 555,115 0.80 $ 69,384,526 100.00 % 128