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HomeMy WebLinkAbout2018CAFRCity of Oshkosh ANNUAL FINANCIAL REPORT Including Auditor’s Report For the fiscal year ending December 31, 2018 City of Oshkosh, Wisconsin DECEMBER 31, 2018 Table of Contents INTRODUCTORY SECTION Letter of Transmittal 1 Council Members and Principal Officers 4 Organizational Chart 5 The City 6 INDEPENDENT AUDITORS’ REPORT 10 MANAGEMENT’S DISCUSSION AND ANALYSIS 13 BASIC FINANCIAL STATEMENTS Government-wide Financial Statements Statement of Net Position 23 Statement of Activities 24 Fund Financial Statements Balance Sheet - Governmental Funds 26 Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Funds 29 Statement of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - General Fund 32 Statement of Net Position - Proprietary Funds 33 Statement of Revenues, Expenses and Changes in Net Position - Proprietary Funds 37 Statement of Cash Flows - Proprietary Funds 39 Statement of Fiduciary Net Position - Fiduciary Funds 43 Notes to Basic Financial Statements 44 REQUIRED SUPPLEMENTARY INFORMATION Schedule of Changes in Total OPEB Liability and Related Ratios 79 Schedule of Proportionate Share of Net Pension Liability (Asset) - Wisconsin Retirement System 80 Schedule of Contributions - Wisconsin Retirement System 80 Schedule of Proportionate Share of Net OPEB Liability - Local Retiree Life Insurance Plan 81 Schedule of Contributions - Local Retiree Life Insurance Plan 81 Notes to Required Supplementary Information 82 City of Oshkosh, Wisconsin DECEMBER 31, 2018 SUPPLEMENTARY INFORMATION Combining Balance Sheet - Nonmajor Governmental Funds 83 Combining Statement of Revenues, Expenditures and Changes in Fund Balances - Nonmajor Governmental Funds 98 Combining Statement of Net Position - Nonmajor Enterprise Funds 113 Combining Statement of Revenues, Expenses and Changes in Net Position - Nonmajor Enterprise Funds 115 Combining Statement of Cash Flows - Nonmajor Enterprise Funds 117 Combining Statement of Net Position - Internal Service Funds 119 Combining Statement of Revenues, Expenses and Change in Net Position - Internal Service Funds 120 Combining Statement of Cash Flows - Internal Service Funds 121 STATISTICAL SECTION Net Position 122 Changes in Net Position 123 Fund Balances, Governmental Funds 125 Changes in Fund Balance, Governmental Funds 126 Assessed and Estimated Actual Value of Taxable Property 127 Property Tax Rates – Direct and Overlapping Governments 128 Principal Taxpayers 129 Property Tax Levies and Collections 130 Outstanding Debt by Type 131 Ratios of Net General Bonded Debt Outstanding 132 Direct and Overlapping Governmental Activities Debt 133 Legal Debt Margin Information 134 Pledged-Revenue Coverage Water Revenue Bonds 135 Sewer Revenue Bonds 136 Storm Water Revenue Bonds 137 Demographic and Economic Statistics 138 Principal Employers 139 Full-time Equivalent City Government Employees by Function / Program 140 Capital Asset Statistics by Function / Program 141 Operating Indicator by Function / Program 142 Economics – Population, Building Permits, and Utility Customers 143 New Dwelling Units Constructed 144 City of Oshkosh, Wisconsin DECEMBER 31, 2018 Utility Information 145 Budgeted Revenues 148 Operating Budget by Function 151 Pie Charts - Levy Rate 153 Source of Funds (Where the Money Comes From) 154 Use of Funds (Where the Money Goes) 155 Use of Funds by Function (How the Money Goes) 156 ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 157 INTRODUCTORY SECTION Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us 1 July 31, 2019 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, 2018, 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, rests 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 of 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 an accrual basis. In developing and modifying 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. All internal control evaluations occur within the above framework. I believe that the City's internal accounting controls adequately safeguard assets and provide reasonable assurance of proper recording of financial transactions. Budgetary control is maintained at the department 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 the departmental balances are not released until additional appropriations are made available. Open encumbrances are reported as reservations of fund balance as of December 31, 2018. Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us 2 THE REPORTING ENTITY AND ITS SERVICES The City's government consists of a City Manager who is employed by the Mayor and Council of 6 members who are elected at large to a two term-year term. The City provides a full range of municipal services contemplated by Statute or character. This includes police, fire, streets and sanitation, 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 expenditures/expenses are included in the 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. This data for the City of Oshkosh at the end of 2018 was: AMOUNT RATIO OF DEBT TO EQUALIZED VALUE DEBT PER CAPITA Direct Bonded Debt $132,788,606 3.26% $1,984 Outstanding general obligation bonds at December 31, 2018 totaled $132,788,606. Below is a chart that includes all general obligation debt by activity: Equalized valuation of $4,073,682,600 represented an increase of 3.48% from the preceding year. The City’s investment rating by Moody’s Investors Service as of December 31, 2018 was an Aa3 rating . GENERAL, $91,737,339 TIF Districts , $20,442,757 SEWER, $6,653,459 STORM, $5,469,857 WATER, $4,669,194 CONVENTION CENTER, $1,895,000 TRANSIT, $1,161,000 INDUSTRIAL PARK, $735,000 PARKING, $25,000 Finance Department City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5005 http://www.ci.oshkosh.wi.us 3 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. All audit requirements have been complied with and the auditor's opinions have been included in this report. The unmodified opinions expressed by the auditor, on the City's financial statements, is an assertion that there have been no irresolvable restrictions on the scope of the auditors’ examination and the auditors have no significant exceptions as to the accounting principles reflected in the financial statements, the consistency of application of accounting principles, and the adequacy of information disclosures in the financial statements. 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 express my appreciation to all members of the Department who assisted and contributed to its preparation. I also 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 MARK A. ROHLOFF, City Manager JENNIFER L. MESSERSCHMIDT, CPA, Assistant Director of Finance 4 CITY OF OSHKOSH COUNCIL MEMBERS AND PRINCIPAL OFFICERS COUNCIL MEMBERS Name Title Lori Palmeri Mayor Steven Herman Deputy Mayor Debra Allison-Aasby Council Member Jake Krause Council Member Matt Mugerauer Council Member Bob Poeschl Council Member Bill Miller Council Member PRINCIPAL OFFICERS Name Title Mark A. Rohloff City Manager Russ Van Gompel Interim Director of Finance Jennifer L. Messerschmidt, CPA Assistant Director of Finance 5 ORGANIZATIONAL CHART The Voters Mayor & City Council City Manager Administrative Services City Clerk Community Development Finance Fire Legal Library Museum Parks Police Public Works Transportation 6 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 66,717. 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: Name Title Expiration of Term Lori Palmeri Mayor 2021 Steve Herman Deputy Mayor 2020 Debra Allison-Aasby Council Member 2021 Bill Miller Council Member 2020 Jake Krause Council Member 2021 Matt Mugerauer Council Member 2020 Bob Poeschl Council Member 2021 CITY ADMINISTRATION The City Manager, Mark A. Rohloff, is the Chief Executive Officer for the City of Oshkosh and is responsible for planning, organizing, and directing the activities of the city, with policy direction from the Common Council. Mr. Rohloff has over 35 years of experience in local government management. The Finance Department is responsible for the following divisions: Finance, Collections, Accounting, Payroll, Parking, and Water/Sewer/Storm Water Utilities. The department assists the City Manager in preparing the City Budget and is responsible for the administration of budgeted funds. The Finance Director position is currently vacant and is in the process of being filled. During fiscal year 2018 and in the months leading up to the final preparation of the 2018 report, the Director of Finance-City Treasurer position was held by Ms. Trena Larson. The Interim Finance Director position is currently being filled by a contract professional, who is assisted by the Assistant Director of Finance, Jennifer Messerschmidt, CPA, whose day-to-day responsibilities include supervising and participating in all general, utility, and special accounting activities of the City. 7 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 100 sworn officers and 29 full and part-time civilian employees, 10 community service officers, and 18 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 34,000 cardholders from Oshkosh and surrounding towns through the main library, library website, and deposit collections. Over 300,000 items in the collections are checked out over 1,000,000 times in a year and over 400,000 visits are made to the library. Pursuant to ch 43.54 of the Wis State Statutes, a Library Board of Trustees governs the Library. MUSEUM – The Oshkosh Public Museum serves the community through permanent, traveling, and virtual exhibitions, educational services and programs, publications, and research facilities. The Museum is entrusted with the preservation, care, and documentation of 250,000 objects, as well as historic photographs, film, and archival materials. The Museum is governed by an eleven member Board which includes the Superintendent of Schools, and School Board President. DEPARTMENT OF PARKS – The Department of Parks develops and maintains the City’s 440 acres of park and public areas including recreational facilities, Lakeshore Municipal Golf Course, urban Forestry, Riverside Cemetery, Leach Amphitheater, Pollock Community Water Park, Menominee Park Zoo, multi-purpose trail systems, river walk, round-a-bouts, and Seniors Center. MASS TRANSIT – The Transit System (GO Transit), consists of 16 buses providing service over nine fixed-routes in the City of Oshkosh. An additional intercity route provides service between Oshkosh and Neenah, WI. The intercity route is provided by a contractor. The buses travel over 550,000 miles annually. The transit system also provides four paratransit programs for the community through a service contract. In total, over 1 million rides are provided each year. A seven-member Transit Advisory Board and the Oshkosh Common council govern the activities of GO Transit. 8 PARKING UTILITY – The Parking Utility operates nineteen off-street parking lots, containing 1,679 parking stalls. There are seventeen off-street parking lots in the central business district and two off-street lots in the Oregon Street business area. In 1987, a Business Improvement District was formed in the downtown area. The BID assists in the financing of the downtown lots. A five-member commission provides recommendations for the activities of the utility. 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 from residential properties which are one to four units in size. 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 sixteen million gallon per day water filtration plant put into operation in 1999, operating 24 hours a day, to provide potable water production and distribution for general public use, industrial and firefighting 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 Water Distribution Division is in charge of daily and emergency maintenance of all water mains, hydrants, services, and meters. The Sewer Utility operates a 20 million gallon per day (MGD) Wastewater Treatment Facility that provides secondary treatment and discharges the treated wastewater to the Fox River. The Storm Water Utility is responsible for managing storm water runoff generated within the City of Oshkosh. In addition to providing flood reduction benefits, the Storm Water Utility is required to comply with the requirements of the Federal Clean Water Act, administered by the Wisconsin Department of Natural Resources. These requirements include reducing the amount of pollution discharging into Lake Winnebago from the storm water generated within the City of Oshkosh. DEPARTMENT OF TRANSPORTATION – The Department of Transportation maintains and installs all signs, pavement markings, lighting systems, fiber optics, and traffic signals for public streets, parks and city buildings. 9 CITY EMPLOYEES The City employs approximately 523 full-time, 95 part-time, and 85 seasonal employees. Of which 14 are officials or administrators, 46 are supervisors/managers, and 202 employees are involved in protective services. Certain groups of employees of the City, including Fire, Police, and Transit are organized into labor unions for purposes of conducting collective bargaining with the City. The contracts are in effect through 2020. All eligible full-time and part-time City employees participate in the Wisconsin Retirement System, with limited seasonal staff also eligible and enrolled. Pursuant to State Law, annual contribution rates are set in June each year by an independent consulting actuary and approved by the Employee Trust Funds Board. The rates based on assumptions concerning mortality, disability, interest rates, retirement age, retirement formula factor and the earnings, age, number of people in each category etc. The City’s total contribution to the Retirement Fund was $3,515,255 for the year ended December 31, 2018. In addition to the above referenced retirement fund, the State administers a plan for four 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, 2018 was $13,693. CliftonLarsonAllen LLP CLAconnect.com 10 Independent auditors’ report To the Common Council City of Oshkosh, Wisconsin REPORT ON THE FINANCIAL STATEMENTS We have audited the accompanying financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Oshkosh, Wisconsin (the “City”) as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. MANAGEMENT’S RESPONSIBILITY FOR THE FINANCIAL STATEMENTS Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. AUDITORS’ RESPONSIBILITY Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America 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 involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the City’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. OPINIONS In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City as of December 31, 2018, and the respective changes in financial position and, where applicable, cash flows thereof and the budgetary comparison for the General Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. 11 CHANGE IN ACCOUNTING PRINCIPLE For the year ended December 31, 2018, the City early implemented GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for its single-employer defined postemployment health plan. In the current year, the Local Retiree Life Insurance Fund (LRLIF), a multiple-employer defined benefit OPEB plan, completed an actuarial study under GASB Statement No. 74, Financial Reporting for Postemployment Benefit Plans, which identified a net OPEB liability for the Plan. The City recorded its proportionate share of this liability as of December 31, 2018 as a cumulative effect of change in accounting principle in the 2018 government-wide financial statements. Our opinions are not modified with respect to this matter. PRIOR YEAR SUMMARIZED FINANCIAL INFORMATION The 2017 financial statements were audited by Schenck SC, whose practice became part of CliftonLarsonAllen LLP as of January 1, 2019, and whose report dated August 20, 2018, expressed unmodified opinions on those respective financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund and the aggregate remaining fund information. OTHER MATTERS Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 13 through 22 and the schedules relating to pensions and other postemployment benefits on pages 79 through 81 be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The financial information listed in the table of contents as supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary information is fairly stated in all material respects in relation to the basic financial statements as a whole. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. 12 Schenck SC previously audited, in accordance with auditing standards generally accepted in the United States of America, the City of Oshkosh, Wisconsin’s basic financial statements for the year ended December 31, 2017, which are not presented with the accompanying financial statements and expressed unmodified opinions on the respective financial statements of the governmental activities, the business-type activities, each major fund and the aggregate remaining fund information. That audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Oshkosh, Wisconsin’s basic financial statements as a whole. The 2017 actual amounts in the general fund budgetary comparison information and the combining nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare used to prepare the 2017 basic financial statements. The report of Schenck SC stated that the information has been subjected to the auditing procedures applied in the audit of those basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In their opinion, the 2017 actual amounts in the general fund budgetary comparison information and combining nonmajor fund financial statements were fairly stated in all material respects in relation to the basic financial statements from which they have been derived. OTHER REPORTING REQUIRED BY GOVERNMENT AUDITING STANDARDS In accordance with Government Auditing Standards, we have also issued our report dated July 31, 2019, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. CliftonLarsonAllen LLP Wausau, Wisconsin July 31, 2019 MANAGEMENT’S DISCUSSION AND ANALYSIS CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 13 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, 2018. The analysis focuses on the City’s financial performance as a whole. Financial Highlights • The assets and deferred outflows of resources of the governmental activities of the City exceeded its liabilities and deferred inflows of resources as of December 31, 2018 and 2017 by $ $118,878,609 and $99,393,743 (net position), respectively. Of this amount, $47,114,137 in 2018 and $33,786,672 in 2017 (unrestricted net position), respectively, may be used to meet the City’s ongoing obligations to citizens and creditors. • The City’s governmental activities net position increased by $19,127,459 and increased $11,005,999, for the years ending December 31, 2018 and 2017, respectively. • The property tax rate increased 0.2% and 2.1%, respectively, per $1,000 of property value for the years ended December 31, 2018 and 2017, respectively. • As of December 31, 2018 and 2017, the City’s governmental funds reported combined ending fund balances of $61,968,886 and $52,263,708, an increase of $9,705,178 for 2018 and an increase $8,258,382 for 2017. Approximately 41% and 33% of this total amount, $25,215,477 and $17,460,771 is available for spending at the City’s discretion (assigned and unassigned fund balance), respectively. • As of December 31, 2018 and 2017, unassigned fund balance for the general fund was $11,817,119 and $10,230,445, or approximately 27% and 24% of total general fund expenditures, respectively. • The City’s total general-obligation debt decreased by $4,011,308 (2.9%) during 2018. The key factor in this decrease was the issuance of $11,440,000 of general obligation debt and $15,451,308 of principal payments of general obligation debt. • The City’s total general-obligation debt decreased by $2,076,405 (1.5%) during 2017. The key factor in this decrease was the issuance of $12,770,000 of general obligation debt and $14,846,405 of principal payments of general obligation debt. 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 required supplemental information and other supplemental 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 government-wide statements are made up of the statement of net position and the statement of activities. The statement of net position presents information on all of the City’s assets, liabilities, and deferred outflows and inflows of resources, with the difference being reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The statement of activities presents information showing how the City’s net position changed during the most recent year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods. (e.g., uncollected taxes and earned but unused vacation leave.) CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 14 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, community development, and TIF districts. The business-type activities of the City include mass transit services, water utility, sewer utility, parking utility, Oshkosh redevelopment project, industrial park, golf course, storm water utility, and inspection services. The government-wide financial statements include not only the City itself (known as the primary government), but also a legally separate Redevelopment Authority (component unit) 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. 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. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. This comparison may help readers 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 73 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, debt service fund, and special assessment improvement funds which are considered to be major funds. Data from the other 70 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, certain special revenue funds, and the debt service fund. 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. 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 9 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. CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 15 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, sewer utility, and storm water utility, all of which are considered to be major funds of the City. Data from the other five 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. 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. 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. Required Supplementary Information. The required supplementary information provides information and disclosures related to the City’s other post-employment benefits and pension plan. The required supplementary information can be found immediately following the footnotes. Other information. The combining statements referred to earlier in connection with nonmajor governmental funds, nonmajor enterprise funds and internal service funds are presented as supplementary information immediately following the required supplementary information. Government-wide Financial Analysis Net position. As noted earlier, net position may serve over time as a useful indicator of a government’s financial position. In the case of the City, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources by $334,101,246 and $298,599,941 at the close of 2018 and 2017, respectively. City of Oshkosh's Net Position CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 16 City of Oshkosh's Net Position By far the largest portion of the City’s net position (55%) and (51%) for 2018 and 2017, 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 position (13%) and (14%) for 2018 and 2017, respectively, represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position ($105,780,241) and ($107,050,832) for 2018 and 2017, respectively, may be used to meet the City’s ongoing obligations to citizens and creditors. CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 17 Change in net position. Governmental activities increased the City’s net position by $19,127,459 in 2018 and increased by $11,005,999 in 2017. Business-type activities increased the City’s net position by $17,005,474 in 2018 and by $13,252,141 in 2017. Total net position of the City increased in 2018 by $36,132,933 and in 2017 by $24,258,140. Key elements of this change are as follows: City of Oshkosh's Change in Net Position CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 18 City of Oshkosh's Change in Net Position Property and other taxes increased by $1,616,167 (3.7%) and increased by $2,756,439 (6.8%) in 2017. CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 19 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, unassigned fund balance may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year. As of December 31, 2018 and 2017, the City’s governmental funds reported combined ending fund balances of $61,968,886 and $52,263,708, an increase of $9,705,178 and an increase of $8,258,382 in 2017. Of the total fund balance, $2,774,320 and ($3,466,556) constitutes unassigned fund balance, which is available for spending at the City’s discretion. The remainder of fund balance is nonspendable, restricted, committed or assigned to indicate that it is not available for new spending because it has already been committed as follows: City of Oshkosh's Governmental Fund Balances Total assigned Details of these fund balance categories can be found in Note 3.J. The general fund is the chief operating fund of the City. At the end of 2018 and 2017, unassigned fund balance of the general fund was $11,817,119 and $10,230,445, respectively, while total fund balance reached $12,062,175 and $10,376,615, respectively. As a measure of the general fund’s liquidity, it may be useful to compare both unassigned fund balance to total fund expenditures. Unassigned fund balance represents 27% and 24% of total general fund expenditures. The fund balance of the City’s general fund increased by $ 1,685,560 in 2018 and increased by $914,636 in 2017. The debt service fund has a total fund balance of $1,092,465 and $923,371, an increase of $169,094 and an increase of $163,367. CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 20 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 position of the proprietary funds at the end of the 2018 and 2017 amounted to $58,666,104 and $73,264,160, respectively. Net position increased $17,005,474 in 2018 and increased $13,252,141 in 2017. Other factors concerning the finances of these funds have already been addressed in the discussion of the City’s business-type activities. General Fund Budgetary Highlights Generally the original budget is rarely modified. During 2018 actual revenues were greater than budgeted revenues by $1,383,229, primarily in public charges for services and intergovernmental revenues. Actual expenditures were less than budgeted by $173,754, which left a total budget unspent of $1,556,983. During 2017 actual revenues were greater than budgeted revenues by $787,189, primarily in intergovernmental revenues. Actual expenditures were less than budgeted by $411,172, which left a total budget unspent of $1,198,361. 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, 2018 and 2017, amounted to $501,567,381 and $476,284,508 (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 $25,282,873 or 5% for 2018 and increased by $30,348,197 or 7% for 2017. Major capital asset acquired or constructed during the years ended 2018 and 2017 include: • The governmental activities include constructed streets in the amount of $8,827,616 and $6,420,375, purchased land in the amount of $0 and $1,024,861, vehicles in the amount of $461,477 and $981,361, and building improvements and contents in the amount of $4,463,567 and $3,191,452, respectively. • The business-type activities purchased additional land and improvements in the amount of $0 and $0, and improvements to water, sewer and storm water utilities in the amount of $9,522,041 and $26,721,574, respectively. City of Oshkosh's Capital Assets CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 21 City of Oshkosh's Capital Assets Long-term debt. At the end of 2018 and 2017, the City had total bonded debt outstanding of $311,056,385 and $319,602,044, respectively. Of this amount, $132,788,606 and $136,799,914, 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 City of Oshkosh's Outstanding Debt The City’s total debt decreased by $8,545,659 (-2.7%) in 2018 and increased by $13,693,556 (4.5%) in 2017. CITY OF OSHKOSH, WISCONSIN Management’s Discussion and Analysis December 31, 2018 22 The City maintains an Aa3 rating from Moody’s Investors Service for its general obligation debt as of December 31, 2018. The water utility and sewer utility both maintain an Aa3 rating, while the storm water utility maintains an A1 rating from Moody’s Investors Service for their respective revenue bonds as of December 31, 2018. State statutes limit the amount of general obligation debt the City may issue to 5% of its total equalized valuation. The debt limitation for 2018 and 2017 for the City was $ 203,684,130 and $196,588,910, respectively, which is significantly in excess of the City’s $132,788,606 and $136,799,914 outstanding general obligation debt. Economic Factors and Next Year’s Budgets and Rates • The economic condition and outlook of the City has remained fairly stable based on a relatively healthy mix of manufacturing, tourism, service industry and retail activities which support our tax base. • Inflationary trends in our region compare favorably to national indices. All of these factors were considered in preparing the City’s budget for the 2019 fiscal year. Contacting the City’s Financial Management This financial report is designed to provide a general overview of the City’s finances for all those with an interest in the City’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to City of Oshkosh Finance Office, P. O. Box 1130, Oshkosh, Wisconsin 54903-1130. BASIC FINANCIAL STATEMENTS 23 The notes to the basic financial statements are an integral part of this statement. 24 Program Revenues Operating Capital Grants Charges for Grants and and Functions/Programs Expenses Services Contributions Contributions GOVERNMENTAL ACTIVITIES General government 6,994,718$ 1,579,036$ 1,610$ -$ Public safety 28,413,351 2,930,736 986,893 50,636 Public works 13,759,356 4,194,483 3,594,650 4,204,874 Transportation 712,193 49,406 - - Health and human services 934,016 158,010 202,559 - Culture and recreation 9,363,655 1,331,976 1,321,056 - Conservation and development 2,398,993 1,910,581 1,275,330 1,741,550 Unclassified 1,149,873 - - - Interest and fiscal charges 3,521,757 - - - Total governmental activities 67,247,912 12,154,228 7,382,098 5,997,060 BUSINESS-TYPE ACTIVITIES Transit utility 5,252,110 995,725 3,110,752 2,487,514 Water utility 10,863,872 15,465,120 - 256,097 Sewer utility 11,962,807 14,560,093 - 278,532 Storm water utility 6,911,334 9,986,323 - 2,063,653 Parking utility 263,527 140,134 - - Oshkosh redevelopment project 1,766,184 1,856,931 - - Industrial park 32,955 148,635 - - Golf course 103,609 387 - - Inspection services 908,813 1,211,846 - - Component Unit General revenues Taxes Property taxes, levied for general purposes Property taxes, levied for debt service Other taxes Federal and state grants and other contributions Miscellaneous Gain on sale of asset Transfers Total general revenues and transfers Change in net position Net position - January 1, as originally presented Cumulative effect of change in accounting principle The notes to the basic financial statements are an integral part of this statement. 25 Net (Expense) Revenue Component and Changes in Net Position Unit Governmental Business-type Totals Redevelopment Activities Activities 2018 2017 Authority (5,414,072)$ -$ (5,414,072)$ (5,536,336)$ -$ (24,445,086) - (24,445,086) (25,490,411) - (1,765,349) - (1,765,349) (2,030,545) - (662,787) - (662,787) (1,005,695) - (573,447) - (573,447) (777,061) - (6,710,623) - (6,710,623) (7,189,237) - 2,528,468 - 2,528,468 (2,737,916) - (1,149,873) - (1,149,873) (1,310,095) - (3,521,757) - (3,521,757) (3,479,436) - (41,714,526) - (41,714,526) (49,556,732) - - 1,341,881 1,341,881 (1,033,501) - - 4,857,345 4,857,345 5,087,852 - - 2,875,818 2,875,818 2,857,285 - - 5,138,642 5,138,642 5,527,272 - - (123,393) (123,393) (116,859) - - 90,747 90,747 135,026 - - 115,680 115,680 (22,967) - - (103,222) (103,222) (35,158) - - 303,033 303,033 436,581 - 26,088,061 920,600 27,008,661 26,100,624 - 10,985,500 - 10,985,500 10,323,676 - 6,731,857 - 6,731,857 6,652,124 - 321,963 - 321,963 355,390 - 14,004,464 - 14,004,464 13,868,473 - 966,466 788,592 1,755,058 2,391,999 - 355,433 2,163,840 2,519,273 1,136,780 1,316 16,841 7,311 24,152 150,275 - 1,371,400 (1,371,400) - - - 60,841,985 2,508,943 63,350,928 60,979,341 1,316 19,127,459 17,005,474 36,132,933 24,258,140 (3,558) 99,393,743 199,206,198 298,599,941 274,341,801 17,852,572 357,407 (989,035) (631,628) - - 99,751,150 198,217,163 297,968,313 274,341,801 17,852,572 26 Special Assessment General Debt Service Improvement ASSETS Cash and investments 10,001,171$ 1,092,465$ 2,970,002$ Receivables Taxes and special charges 19,264,621 11,451,100 - Accounts 2,216,472 - 186,660 Special assessments 449,774 - 9,012,748 Loans - - - Due from other funds 2,381,807 - - Due from other governments - - - Inventories and prepaid items 83,851 - - Deposit with GO HNI - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable 403,960$ -$ 1,700$ Accrued and other current liabilities 2,715,161 - - Due to other funds - - 157,574 Due to other governments - - - Special deposits - - 1,368,262 Unearned revenues - - - Total liabilities 3,119,121 - 1,527,536 Deferred inflows of resources Property taxes levied for subsequent year 19,216,400 11,451,100 - Loans receivable - - - Special charges assessed - - 9,460,206 Total deferred inflows of resources 19,216,400 11,451,100 9,460,206 Fund balances Nonspendable 83,851 - - Restricted - 1,092,465 - Committed - - - Assigned 161,205 - - Unassigned 11,817,119 - 1,181,668 Total fund balances 12,062,175 1,092,465 1,181,668 Total liabilities, deferred inflows The notes to the basic financial statements are an integral part of this statement. 27 Other Governmental Totals Funds 2018 2017 59,352,117$ 73,415,755$ 74,280,982$ 11,494,774 42,210,495 44,234,947 1,057,984 3,461,116 1,923,490 - 9,462,522 9,645,201 4,129,693 4,129,693 4,075,888 1,562,559 3,944,366 1,704,665 532,853 532,853 251,153 - 83,851 59,300 204,380 204,380 201,919 2,704,609$ 3,110,269$ 5,008,561$ - 2,715,161 2,230,577 11,785,926 11,943,500 17,378,581 - - 3,920,888 310,780 1,679,042 1,561,301 26,000 26,000 76,000 14,827,315 19,473,972 30,175,908 11,494,774 42,162,274 44,207,667 4,129,693 4,129,693 - 250,000 9,710,206 9,730,262 15,874,467 56,002,173 53,937,929 - 83,851 59,300 30,576,630 31,669,095 33,572,546 5,000,463 5,000,463 1,171,091 22,279,952 22,441,157 20,927,327 (10,224,467) 2,774,320 (3,466,556) 47,632,578 61,968,886 52,263,708 28 2018 2017 RECONCILIATION TO THE STATEMENT OF NET POSITION Total fund balances as shown on previous page 61,968,886$ 52,263,708$ Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not current financial resources and therefore are not reported in the funds.158,239,254 152,090,627 Long-term assets are not available; therefore, are not reported in the funds: Special assessments 9,460,206 9,219,462 Loans receivable 4,129,693 - Grants 250,000 510,800 Net pension asset 8,258,428 - Net position of the internal service funds are reported in the statement of net position as governmental activities 2,861,843 2,748,584 Some deferred outflows and inflows of resources reflect changes in long-term liabilities and are not reported in the funds. Loss on advance refunding 432,750 488,506 Gain on advance refunding (26,053) (40,105) Deferred outflows related to pensions 15,204,598 17,383,397 Deferred inflows related to pensions (16,298,830) (7,123,385) Deferred outflows related to other postemployment benefits 328,700 - Deferred inflows related to other postemployment benefits (25,784) - Long-term liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Bonds and notes payable (112,180,096) (112,757,690) Premium on debt (2,652,892) (2,553,434) Compensated absences (4,434,862) (4,305,769) Net pension liability - (2,248,061) Other postemployment benefit (5,975,643) (5,605,749) Accrued interest on long-term obligations (661,589) (677,148) Net position of governmental activities as reported on the statement The notes to the basic financial statements are an integral part of this statement. 29 The notes to the basic financial statements are an integral part of this statement. 30 31 The notes to the basic financial statements are an integral part of this statement. 32 Variance Final Budget - Budget Positive 2017 Original Final Actual (Negative)Actual REVENUES Taxes 18,660,700$ 18,660,700$ 18,650,000$ (10,700)$ 17,817,570$ Intergovernmental 16,298,100 16,298,100 16,471,481 173,381 16,010,266 Licenses and permits 969,900 969,900 1,010,482 40,582 973,901 Fines and forfeits 719,100 719,100 761,047 41,947 781,434 Public charges for services 2,760,900 2,760,900 3,305,885 544,985 2,901,819 Intergovernmental charges for services 3,638,100 3,638,100 3,883,174 245,074 4,463,334 Miscellaneous 651,205 651,205 999,165 347,960 768,765 Total revenues 43,698,005 43,698,005 45,081,234 1,383,229 43,717,089 EXPENDITURES Current General government 6,351,500 6,623,300 6,653,597 (30,297) 6,384,666 Public safety 26,650,200 26,650,200 26,486,361 163,839 25,869,003 Public works 6,208,700 6,208,700 5,908,735 299,965 5,909,087 Transportation 736,800 736,800 719,561 17,239 723,741 Culture and recreation 2,144,900 2,144,900 2,129,249 15,651 2,058,140 Conservation and development 1,369,200 1,369,200 1,317,797 51,403 1,317,316 Unclassified 745,200 739,200 1,079,471 (340,271) 1,251,952 Debt service Interest and fiscal charges - - 3,775 (3,775) 4,823 Total expenditures 44,206,500 44,472,300 44,298,546 173,754 43,518,728 Excess of revenues over (under) expenditures (508,495) (774,295) 782,688 1,556,983 198,361 OTHER FINANCING SOURCES (USES) Transfers in 1,000,000 1,000,000 1,000,000 - 1,000,000 Transfers out - - (97,128) (97,128) (283,725) Total other financing sources (uses)1,000,000 1,000,000 902,872 (97,128) 716,275 Net change in fund balance 491,505 225,705 1,685,560 1,459,855 914,636 Fund balance - January 1 10,376,615 10,376,615 10,376,615 - 9,461,979 The notes to the basic financial statements are an integral part of this statement. 33 Enterprise Funds Transit Water Sewer Storm Water Utility Utility Utility Utility ASSETS Current assets Cash and investments 992,968$ 7,713,656$ 262,382$ 16,480,708$ Receivables Taxes and special charges 947,700 - - - Customer accounts 141,199 4,888,033 4,989,251 3,129,091 Special assessments - 101,121 296,453 8,200 Due from other funds - 186,399 12,279,024 85,303 Due from other governments 1,835,030 - - - Inventories and prepaid items 515,055 991,877 599,457 204,529 Total current assets 4,431,952 13,881,086 18,426,567 19,907,831 Noncurrent assets Restricted assets Cash and investments - 5,170,709 6,464,144 5,599,247 Other assets Assets held for resale - - - - Net pension asset 345,979 399,342 426,879 167,181 Total other assets 345,979 399,342 426,879 167,181 Capital assets Nondepreciable 367,811 1,826,077 2,060,638 9,082,175 Depreciable 4,971,814 103,319,544 108,838,567 99,693,452 Total capital assets 5,339,625 105,145,621 110,899,205 108,775,627 Total assets 10,117,556 124,596,758 136,216,795 134,449,886 DEFERRED OUTFLOWS OF RESOURCES Loss on advance refunding - 92,826 165,365 - Pension related amounts 630,800 706,057 779,832 306,522 Other postemployment related amounts 10,951 17,494 18,755 7,533 Total deferred outflows of resources 641,751 816,377 963,952 314,055 The notes to the basic financial statements are an integral part of this statement. 34 Governmental Activities - Totals Internal Service Funds Nonmajor Funds 2018 2017 2018 2017 4,517,720$ 29,967,434$ 37,681,005$ 2,890,815$ 2,751,122$ - 947,700 920,600 - 18,200 118,346 13,265,920 12,817,104 - - - 405,774 - - - - 12,550,726 19,818,127 - - - 1,835,030 309,315 - - 22,446 2,333,364 2,307,760 - - 4,658,512 61,305,948 73,853,911 2,890,815 2,769,322 - 17,234,100 13,990,316 - - 6,549,663 6,549,663 6,653,016 - - 64,761 1,404,142 - - - 6,614,424 7,953,805 6,653,016 - - 5,099,020 18,435,721 32,485,059 - - 8,069,029 324,892,406 291,708,822 - - 13,168,049 343,328,127 324,193,881 - - 24,440,985 429,821,980 418,691,124 2,890,815 2,769,322 - 258,191 294,993 - - 143,483 2,566,694 3,011,685 - - 3,864 58,597 - 238 - 147,347 2,883,482 3,306,678 238 - 35 Enterprise Funds Transit Water Sewer Storm Water Utility Utility Utility Utility LIABILITIES Current liabilities Accounts payable 119,294$ 331,726$ 197,680$ 82,450$ Accrued and other current liabilities - 1,000,000 - - Due to other funds - 144,156 934,904 506,083 Due to other governments 119,606 - - - Special deposits - - 13,400 - Unearned revenue 3,220 - - - Current portion of long-term debt 135,000 2,305,067 4,677,312 4,260,718 Accrued interest payable 4,574 40,790 329,992 583,537 Total current liabilities 381,694 3,821,739 6,153,288 5,432,788 Long-term obligations, less current portion General obligation debt 1,026,000 3,878,643 5,543,341 4,749,139 Revenue bonds - 45,815,692 53,235,377 70,595,000 Debt premium - 1,517,236 1,405,707 2,245,334 Compensated absences 170,664 337,613 186,514 80,626 Net pension liability - - - - Other postemployment benefits 138,755 352,252 378,719 155,763 Total long-term liabilities 1,335,419 51,901,436 60,749,658 77,825,862 Total liabilities 1,717,113 55,723,175 66,902,946 83,258,650 DEFERRED INFLOWS OF RESOURCES Property taxes levied for subsequent year 947,700 - - - Deferred gain on refunding - - - - Pension related amounts 682,824 788,140 842,488 329,949 Other postemployment related amounts 1,080 1,247 1,333 522 Total deferred inflows of resources 1,631,604 789,387 843,821 330,471 NET POSITION Net investment in capital assets 4,178,625 51,721,809 46,202,833 26,925,436 Restricted - 5,129,919 6,134,152 5,015,710 Unrestricted 3,231,965 12,048,845 17,096,995 19,233,674 The notes to the basic financial statements are an integral part of this statement. 36 Governmental Activities - Totals Internal Service Funds Nonmajor Funds 2018 2017 2018 2017 293,004$ 1,024,154$ 478,188$ 19,772$ 2,538$ - 1,000,000 1,129,620 - - 2,966,449 4,551,592 4,144,211 - - - 119,606 - - - 5,000 18,400 20,996 - - 23,234 26,454 24,407 - - 470,000 11,848,097 15,257,726 - - 58,786 1,017,679 1,780,639 - - 3,816,473 19,605,982 22,835,787 19,772 2,538 2,185,000 17,382,123 20,608,503 - - - 169,646,069 171,332,778 - - - 5,168,277 4,698,334 - - 58,373 833,790 761,542 - - - - 388,462 - - 97,799 1,123,288 - 9,438 - 2,341,172 194,153,547 197,789,619 9,438 - 6,157,645 213,759,529 220,625,406 29,210 2,538 - 947,700 920,600 - 18,200 - - 14,689 - - 127,811 2,771,212 1,230,909 - - 202 4,384 - - - 128,013 3,723,296 2,166,198 - 18,200 11,248,049 140,276,752 113,691,844 - - - 16,279,781 12,250,194 - - 7,054,625 58,666,104 73,264,160 2,861,843 2,748,584 37 Enterprise Funds Transit Water Sewer Storm Water Utility Utility Utility Utility OPERATING REVENUES Charges for services 915,434$ 15,254,456$ 14,458,482$ 9,983,418$ Taxes - - - - Fines, forfeitures and penalties - - - - Other 80,291 210,664 118,640 2,905 Total operating revenues 995,725 15,465,120 14,577,122 9,986,323 OPERATING EXPENSES Operation and maintenance 4,640,770 5,669,951 6,022,572 2,107,879 Depreciation 552,143 3,354,525 3,781,177 2,084,942 Taxes - 146,440 161,389 64,625 Claims and administration - - - - Total operating expenses 5,192,913 9,170,916 9,965,138 4,257,446 Operating income (loss)(4,197,188) 6,294,204 4,611,984 5,728,877 NONOPERATING REVENUES (EXPENSES) General property taxes 920,600 - - - Interest income - 221,046 309,064 241,453 Nonoperating grants 3,110,752 - - 5,000 Gain (loss) on disposal of capital assets 7,311 - - - Interest and fiscal charges (59,197) (1,692,956) (1,997,669) (2,653,888) Total nonoperating revenues (expenses)3,979,466 (1,471,910) (1,688,605) (2,407,435) Income (loss) before contributions and transfers (217,722) 4,822,294 2,923,379 3,321,442 Capital contributions 2,487,514 256,097 278,532 2,058,653 Transfers in - - - - Transfers out - (1,000,000) - - Change in net position 2,269,792 4,078,391 3,201,911 5,380,095 Net position - January 1, as originally presented 5,258,214 65,133,463 66,566,807 45,932,630 Cumulative effect of change in accounting principle (117,416) (311,281) (334,738) (137,905) Net position - January 1 5,140,798 64,822,182 66,232,069 45,794,725 The notes to the basic financial statements are an integral part of this statement. 38 Governmental Activities - Totals Internal Service Funds Nonmajor Funds 2018 2017 2018 2017 1,333,647$ 41,945,437$ 40,475,644$ 67,198$ 66,912$ 1,757,572 1,757,572 1,716,066 - - 18,333 18,333 25,435 - - 117,415 529,915 437,007 629,367 384,102 3,226,967 44,251,257 42,654,152 696,565 451,014 2,650,372 21,091,544 20,858,381 - - 306,022 10,078,809 9,353,001 - - - 372,454 369,660 - - - - - 618,324 616,003 2,956,394 31,542,807 30,581,042 618,324 616,003 270,573 12,708,450 12,073,110 78,241 (164,989) - 920,600 887,524 18,200 18,400 - 771,563 493,595 25,453 6,444 - 3,115,752 3,191,261 - - 2,294,916 2,302,227 - - - (118,804) (6,522,514) (6,359,457) - - 2,176,112 587,628 (1,787,077) 43,653 24,844 2,446,685 13,296,078 10,286,033 121,894 (140,145) - 5,080,796 3,930,617 - - - - 35,491 - - (371,400) (1,371,400) (1,000,000) - - 2,075,285 17,005,474 13,252,141 121,894 (140,145) 16,315,084 199,206,198 185,954,057 2,748,584 2,888,729 (87,695) (989,035) - (8,635) - 16,227,389 198,217,163 185,954,057 2,739,949 2,888,729 39 Enterprise Funds Transit Water Sewer Storm Water Utility Utility Utility Utility CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers 1,200,700$ 15,315,222$ 14,141,164$ 9,908,497$ Cash paid for employee wages and benefits (2,550,770) (2,845,009) (3,130,988) (1,223,648) Cash paid to suppliers (2,000,736) (2,532,093) (2,994,877) (921,142) Net cash provided (used) by operating activities (3,350,806) 9,938,120 8,015,299 7,763,707 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES General property taxes 920,600 - - - Intergovernmental revenues 1,704,643 - - 5,000 Due to/from other funds - 451,719 3,509,700 4,431,454 Transfer in (out)- (1,000,000) - (8,200) Net cash provided (used) by noncapital financing activities 2,625,243 (548,281) 3,509,700 4,428,254 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Acquisition of capital assets (649,914) (6,716,539) (10,563,993) (7,780,755) Sale of capital assets 7,311 - - - Proceeds from issuance of long-term debt - - - 10,060,000 Premiums received on long-term debt issued - - - 473,890 Principal paid on long-term debt (143,260) (8,978,773) (4,427,036) (3,868,996) Interest paid on long-term debt (63,219) (2,487,609) (2,253,068) (2,711,437) Net cash provided (used) by capital and related financing activities (849,082) (18,182,921) (17,244,097) (3,827,298) CASH FLOWS FROM INVESTING ACTIVITIES Interest received - 221,046 309,064 241,453 Change in cash and cash equivalents (1,574,645) (8,572,036) (5,410,034) 8,606,116 Cash and cash equivalents - January 1 2,567,613 21,456,401 12,154,481 13,473,839 The notes to the basic financial statements are an integral part of this statement. 40 Governmental Activities - Totals Internal Service Funds Nonmajor Funds 2018 2017 2018 2017 3,221,620$ 43,787,203$ 41,982,325$ 696,565$ 467,956$ (981,192) (10,731,607) (10,433,911) (187,259) (184,252) (1,437,427) (9,886,275) (11,192,915) (413,266) (433,311) 803,001 23,169,321 20,355,499 96,040 (149,607) - 920,600 887,524 18,200 18,400 - 1,709,643 3,239,720 - - (718,091) 7,674,782 (13,165,182) - - (371,400) (1,379,600) (964,509) - - (1,089,491) 8,925,425 (10,002,447) 18,200 18,400 (42,698) (25,753,899) (30,463,441) - - 3,529,860 3,537,171 - - - - 10,060,000 35,741,470 - - - 473,890 2,258,915 - - (610,000) (18,028,065) (21,515,508) - - (91,939) (7,607,272) (6,275,496) - - 2,785,223 (37,318,175) (20,254,060) - - - 771,563 493,595 25,453 6,444 2,498,733 (4,451,866) (9,407,413) 139,693 (124,763) 2,018,987 51,671,321 61,078,734 2,751,122 2,875,885 41 Transit Water Sewer Storm Water Utility Utility Utility Utility RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)(4,197,188)$ 6,294,204$ 4,611,984$ 5,728,877$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Depreciation 552,143 3,354,525 3,781,177 2,084,942 Depreciation charged to sewer utility - 110,396 - - Change in liability (asset) and deferred outflows and inflows of resources Pension 42,717 74,526 52,342 16,253 Other postemployment benefits 11,468 24,724 26,559 10,847 Change in operating assets and liabilities Accounts receivables 206,820 (145,977) (425,190) (77,826) Inventories and prepaid items 39,542 1,249 (31,304) (36,524) Accounts payable (11,445) 224,952 73,958 53,826 Accrued and other current liabilities - (60,535) (52,214) (16,024) Customer deposits - - - - Unearned revenue (1,845) (3,921) (10,768) - Compensated absences 6,982 63,977 (11,245) (664) Net cash provided (used) by operating Reconciliation of cash and cash equivalents to the statement of net position Cash and cash equivalents in current assets 992,968$ 7,713,656$ 262,382$ 16,480,708$ Cash and cash equivalents in restricted assets - 5,170,709 6,464,144 5,599,247 Noncash capital and related financing activities The notes to the basic financial statements are an integral part of this statement. Enterprise Funds 42 Governmental Activities - Totals Internal Service Funds Nonmajor Funds 2018 2017 2018 2017 270,573$ 12,708,450$ 12,073,110$ 78,241$ (164,989)$ 306,022 10,078,809 9,353,001 - - - 110,396 110,321 - - 6,852 192,690 416,998 - - 6,442 80,040 - 565 - (6,643) (448,816) (667,099) - 16,942 1,433 (25,604) 308,450 - - 204,675 545,966 (1,317,398) 17,234 (1,560) (847) (129,620) 129,620 - - (2,596) (2,596) 2,596 - - 3,892 (12,642) (7,324) - - 13,198 72,248 (46,776) - - 4,517,720$ 29,967,434$ 37,681,005$ 2,890,815$ 2,751,122$ - 17,234,100 13,990,316 - - 43 Property Hospital Taxes Bioterrorism ASSETS Current assets Cash and investments 42,983,002$ 4,202$ Receivables Taxes 16,259,285 - Other 9,876 - LIABILITIES Current liabilities Accounts payable 45,073$ -$ Due to other governments 59,207,090 4,202 The notes to the basic financial statements are an integral part of this statement. Agency Funds City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 44 NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Oshkosh, Wisconsin (the “City”), 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: A. REPORTING ENTITY The City 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 and any separate component units that have a significant operational or financial relationship with the City. The City has identified the following component unit that is required to be included in the basic financial statements in accordance with standards established by GASB Statement No. 61. Redevelopment Authority The component unit column in the basic financial statements include the financial data of the City’s component unit, the Redevelopment Authority of the City of Oshkosh. It is reported in a separate column to emphasize that it is legally separate from the City. The Redevelopment Authority’s fiscal year end is December 31. Separate financial statements are not issued for the Redevelopment Authority. B. RELATED ORGANIZATIONS The City’s officials are also responsible for appointing the members of the Boards of other organizations, but the City’s accountability for these organizations does not extend beyond making the appointments. Therefore, these organizations are not included in the City’s reporting entity. The City Council appoints some or all of the members of the following related organizations: School District of Oshkosh Area Fox Valley VTAE District Housing Authority of the City of Oshkosh C. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS The government-wide financial statements (i.e., the statement of net position 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 are primarily supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for services. 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 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 and internal service funds.. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 45 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 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 government funds. Special Assessment Improvement Capital Projects Fund This fund accounts for the cost of capital projects and the special assessments and subsequent assessment collections related to those projects. The City reports the following major enterprise funds: Transit Utility 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. Storm Water Utility Fund This fund accounts for the construction, operation and maintenance of the City owned storm water facilities. Additionally, the City reports the following fund types:  Internal service fund accounts for the financing of goods and services provided by one department to other city departments or to the other governments on a cost reimbursement basis.  The City accounts for property taxes collected on behalf of other governments in an agency fund. D. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING 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. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 46 Revenues susceptible to accrual include intergovernmental grants, intergovernmental charges for services, public charges for services and interest. Other revenues such as licenses and permits, fines and forfeits and miscellaneous revenues are recognized when received in cash or when measurable and available. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Exceptions to this general rule are payments-in-lieu of taxes and other charges between the City’s water and sewer functions and various other functions of the City. Elimination of these charges would distort the direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, and fees and fines, 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 nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the City’s proprietary funds are charges to customers for services. Operating expenses for proprietary funds include the costs of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating 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. E. ASSETS, LIABILITIES, DEFERRED OUTFLOWS/INFLOWS OF RESOURCES, AND NET POSITION OR FUND BALANCE 1. Cash and Investments Cash and investments are combined in the financial statements. 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 price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. 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. 2. Property Taxes and Special Charges/Receivable Property taxes and special charges consist of taxes on real estate and personal property and user charges assessed against City properties. They are levied during December of the prior year and become an enforceable lien on property the following January 1. Property taxes are payable in various options depending on the type and amount. Personal property taxes and special charges are payable on or before January 31 in full. Real estate taxes are payable in full by January 31 or in four equal installments on or before January 31, March 31, May 31, and July 31. Real estate taxes not paid by July 31 are purchased by the County as part of the August tax settlement. Delinquent personal property taxes remain the collection responsibility of the City. In addition to its levy, the City also levies and collects taxes for the Oshkosh and Winneconne Community School Districts, Winnebago County, Fox Valley Technical College, and the Algoma Sanitary District #1. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 47 Property tax calendar for the 2018 tax roll is as follows: Property taxes of $43,109,974 are recorded on December 31, 2018 for collection in 2019 for the City apportionment. The City apportionment is for financing 2019 operations and will be transferred in 2019 from deferred inflows of resources to current revenues of the City’s governmental and proprietary funds. 3. Accounts Receivable Accounts receivable are recorded at gross amounts 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. 4. Special Assessments Assessments against property owners for public improvements are generally not subject to full settlement in the year levied. Special assessments are placed on tax rolls on an installment basis. Revenue from special assessments recorded in governmental funds is recognized as collections are made or as current installments are placed on tax rolls. Installments placed on the 2018 tax roll are recognized as revenue in 2019. Special assessments are subject to collection procedures. 5. Loans Receivable The City has received federal and state grant funds for economic development and housing rehabilitation loan programs and has passed the funds to various businesses and individuals in the form of loans. The City records a loan receivable and expenditure when the loan has been made and the funds disbursed. 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. In the governmental funds, the City records a deferred inflow of resources for the net amount of the receivable. As the loans are repaid, revenue is recognized. Any unspent loan proceeds are presented as restricted fund balance in the fund financial statements. 6. 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” in the fund financial statements. The amount reported on the statement of net position for internal balances represents the residual balance outstanding between the governmental and business-type activities. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 48 7. 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 funds in the fund financial statements are offset by nonspendable fund balance to indicate that they do not represent spendable available financial resources. 8. Prepaid Items Payments made to vendors that will benefit periods beyond the end of the current fiscal year are recorded as prepaid items and are accounted for on the consumption method. Prepaid items of governmental funds in the fund financial statements are offset by nonspendable fund balance to indicate that they do not represent spendable available financial resources. 9. 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 $1,500 or higher and an estimated useful life in excess of a year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated acquisition 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. Capital assets of the City are depreciated using the straight-line method over the following estimated useful lives: 10. Assets Held for Resale Assets held for resale consists of land and improvements and is valued at cost of acquisition, demolition, and site improvements. Properties include both land intended for resale and land designated as a public area. Assets held for resale is recorded at lower of cost or market value. 11. Compensated Absences It is the City’s policy to permit employees to accumulate earned but unused vacation and sick leave benefits in accordance with employee handbook policies. 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. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 49 12. Deferred Outflows/Inflows of Resources Deferred outflows of resources are a consumption of net position by the government that is applicable to a future reporting period. Deferred inflows of resources are an acquisition of net position by the government that is applicable to a future reporting period. The recognition of those outflows and inflows as expenses or expenditures and revenues are deferred until the future periods to which the outflows and inflows are applicable. Governmental funds may report deferred inflows of resources for unavailable revenues. The City reports unavailable revenues for special assessments. These inflows are recognized as revenues in the government-wide financial statements. 13. Long-term Obligations In the government-wide financial statements, and proprietary funds 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 statement of net position. Bond premiums and discounts 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 expensed as incurred. In the fund financial statements, governmental funds 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. 14. Pensions For purposes of measuring the net pension liability (asset), deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Wisconsin Retirement System (WRS) and additions to/deductions from WRS’ fiduciary net position have been determined on the same basis as they are reported by WRS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 15. Other Postemployment Benefits Other Than Pensions (OPEB) Local Retiree Life Insurance Fund The fiduciary net position of the Local Retiree Life Insurance Fund (LRLIF) has been determined using the flow of economic resources measurement focus and the accrual basis of accounting. This includes for purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to other postemployment benefits, OPEB expense, and information about the fiduciary net position of the LRLIF and additions to/deductions from LRLIF’s fiduciary net position have been determined on the same basis as they are reported by LRLIF. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 16. Fund Equity Governmental Fund Financial Statements Fund balance of governmental funds is reported in various categories based on the nature of any limitations requiring the use of resources for specific purposes. The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:  Nonspendable fund balance. Amounts that are not in spendable form (such as inventory, prepaid items, or long-term receivables) or are legally or contractually required to remain intact. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 50  Restricted fund balance. Amounts that are constrained for specific purposes by external parties (such as grantor or bondholders), through constitutional provisions, or by enabling legislation.  Committed fund balance. Amounts that are constrained for specific purposes by action of the City Council. These constraints can only be removed or changed by the City Council using the same action that was used to create them.  Assigned fund balance. Amounts that are constrained for specific purposes by action of City management. Residual amounts in any governmental fund, other than the General Fund, are also reported as assigned.  Unassigned fund balance. Amounts that are available for any purpose. Positive unassigned amounts are only reported in the General Fund. The City Council establishes (and modified or rescinds) fund balance commitments by passage of an ordinance or resolution. This is typically done through adoption and amendment of the budget. A fund balance commitment is further indicated in the budget document as a designation or commitment on the fund (such as for special incentives). Assigned fund balance is established by the City Council through adoption or amendment of the budget as intended for specific purpose (such as the purchase of capital assets, construction, debt service or for other purposes). Government-Wide and Proprietary Fund Statements Equity is classified as net position and displayed in three components:  Net investment in capital assets. Amount of capital assets, net of accumulated depreciation, and capital related deferred outflows of resources less outstanding balances of any bonds, mortgages, notes, or other borrowings that are attributable to the acquisition, construction, or improvement of those assets and any capital related deferred inflows of resources.  Restricted net position. Amount of net position that is 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.  Unrestricted net position. Net position that is neither classified as restricted nor as net investment in capital assets. When an expense is incurred that can be paid using either restricted or unrestricted resources (net position), the City’s policy is to first apply the expense toward restricted resources and then toward unrestricted resources. In governmental funds, the City’s policy is to first apply the expenditure toward restricted fund balance and then to other, less restricted fund balance and then to other, less restrictive classification – committed and then assigned fund balances before using assigned fund balances. F. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. G. PRIOR YEAR INFORMATION Comparative amounts for the prior year have been presented in the basic financial statements to provide an understanding of changes in the City’s financial position and operations. The comparative amounts may be summarized in total and not at the level of detail required for a presentation in conformity with generally accepted accounting principles. Accordingly, such information should be read in conjunction with the government’s financial statements for the year ended December 31, 2017, from which the summarized information was derived. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 51 H. RECLASSIFICATIONS Certain amounts in the prior year financial statements have been reclassified to conform with the presentation in the current year financial statements with no change in previously reported net position, changes in net position, fund balance or changes in fund balance. NOTE 2: STEWARDSHIP AND COMPLIANCE A. BUDGETS AND BUDGETARY ACCOUNTING The City adopted budgets for the General Fund, certain Special Revenue Funds and the Debt Service Fund. 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 City follows these procedures in establishing the budgetary data reflected in the basic financial statements: 1. 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. 2. A public hearing is conducted in the Council Chambers to obtain taxpayer comments. 3. At the second council meeting in November, the budget is legally enacted through passage of a resolution. 4. 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. 5. Formal budgetary integration is employed as a management control device during the year for the General Fund, Special Revenue Funds (except for Business Improvement District, Cable TV Franchise, Historical Marker, Public Works Special, and Community Traffic Safety) and the Debt Service Fund. 6. Budgetary expenditure control is exercised at the department level. 7. Budgeted amounts are as authorized in the original budget resolution and subsequent revisions authorized by the Common Council. 8. All appropriations lapse at year end. The City did not have any material violation of legal or contractual provisions for the fiscal year ended December 31, 2018. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 52 B. DEFICIT FUND EQUITY The following funds had deficit fund balance or net position as of December 31, 2018: The City anticipates funding the above deficits from future revenues of the funds. C. PROPERTY TAX LEVY LIMIT Wisconsin state statutes provide for a limit on the property tax levies for all Wisconsin cities, towns and counties. For the 2018 and 2019 budget years, Wisconsin Statutes limit the increase in the maximum allowable tax levy to the change in the City’s January 1 equalized value as a result of net new construction. The actual limit for the City for the 2018 budget was .74%. The actual limit for the City for the 2019 budget was 1.26%. Debt service for debt authorized after July 1, 2005 is exempt from the levy limit. In addition, Wisconsin statutes allow the limit to be adjusted for the increase in debt service authorized prior to July 1, 2005 and in certain other situations. NOTE 3: DETAILED NOTES ON ALL FUNDS A. 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 on 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. Investments in the private-purpose trust fund may be invested in other types of investments as authorized user Wisconsin Statute 881.01, “Uniform Prudent Investor Act”. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 53 The carrying amount of the City’s cash and investments totaled $166,821,843 on December 31, 2018 as summarized below: Fair Value Measurements The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant observable inputs; Level 3 inputs are significant unobservable inputs. The City has the following fair value measurements as of December 31, 2018: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 54 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 within the State of Wisconsin are insured by the Federal Deposit Insurance Corporation (FDIC) in the amount of $250,000 for the combined amount of all time and savings deposits and $250,000 for interest-bearing and noninterest-bearing demand deposits per official custodian per insured depository institution. Deposits with financial institutions located outside the State of Wisconsin are insured by the FDIC in the amount of $250,000 for the combined amount of all deposit accounts per official custodian per depository institution Also, 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. This coverage has been considered in determining custodial credit risk. As of December 31, 2018, $128,804,362 of the City’s deposits with financial institutions were in excess of federal and state depository insurance limits. All amounts above federal and state depository insurance limits were collateralized with securities held by the pledging financial institution or its trust department or agent but not in the City’s name. 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 investment in securities to the top two ratings assigned by nationally recognized statistical rating organizations. Presented below is the actual rating as of the year-end for each investment type. 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. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 55 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: Investments with Fair Values Highly Sensitive to Interest Rate Fluctuations The City’s investments include the following investments that are highly sensitive to interest rate fluctuations (to a greater degree than already indicated in the information provided above): Investments in Wisconsin Local Government Investment Pool The City has investments in the Wisconsin Local Government Investment Pool of $34,601 at year-end. The 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, 2018, the fair value of the City’s share of the LGIP’s assets was substantially equal to the carrying value. 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 statues limit investments in securities to the top two ratings assigned by nationally recognized statistical rating organizations. The City does not have an additional credit risk policy. The City’s investment in the Wisconsin Local Government Investment Pool is not rated. 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. The City does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. The investment held by the Wisconsin Local Government Investment Pool mature in 12 months or less. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 56 Beneficial Interest in Assets Held by Oshkosh Community Foundation Beneficial interest in assets held by Oshkosh Community Foundation represents amounts held at Oshkosh Community Foundation, Inc. (the “Foundation”). These amounts are legal assets of the Foundation with the restriction that the Foundation makes distributions to the City as needed. The agreement governing the assets includes a variance power allowing the Foundation to modify the restrictions on distributions from the funds. B. RESTRICTED ASSETS Restricted assets on December 31, 2018 totaled $17,234,100 and consisted of cash and investments held for the following purposes: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 57 C. CAPITAL ASSETS Capital asset activity for the year ended December 31, 2018 was as follows: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 58 Depreciation expense was charged to functions of the City as follows: D. INTERFUND RECEIVABLE, PAYABLES, AND TRANSFERS Interfund receivables and payables between individual funds of the City, as reported in the fund financial statements, as of December 31, 2018 are detailed below: Interfund transfers for the year ended December 31, 2018 were as follows: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 59 Interfund transfers were made for the following purposes: E. LOANS RECEIVABLES Loans receivable of $4,129,693 in the Community Development Block Grant, Rental Rehabilitation Loan Program, and Local Revolving Loan Program special revenue funds 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. F. LONG-TERM OBLIGATIONS The following is a summary of changes in long-term obligations of the City for the year ended December 31, 2018: Total interest paid during the year on long-term debt totaled $11,107,867. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 60 General Obligation Debt General obligation debt currently outstanding is detailed as follows: Annual principal and interest maturities of the outstanding general obligation debt of $132,788,606 on December 31, 2018 are detailed below: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 61 For governmental activities, the other long-term liabilities are generally funded by the general fund. Legal Margin for New Debt The City’s legal margin for creation of additional general obligation debt on December 31, 2018 was $71,987,990 as follows: Revenue Bonds Revenue bonds outstanding on December 31, 2018 totaled $178,267,779 and were comprised of the following issues: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 62 Annual principal and interest maturities of the outstanding revenue bonds of $178,267,779 on December 31, 2018 are detailed below: Utility Revenues Pledged The City’s utilities have pledged future water, sewer, and storm water customer revenues, net of specified operating expenses, to repay the revenue bonds through 2038. Proceeds from the bonds provided financing for the construction or acquisition of capital assets used with the systems. A summary of net customer revenues and remaining principal and interest due on revenue bonds follows: Build America Bonds The general obligation debt issued on May 1, 2009 and September 2, 2010 and revenue bonds issued on October 5, 2010 and October 14, 2010 qualify as Build America Bonds, as described in Section 54AA of the Internal Revenue Code. The interest on the debt is taxable as set forth in the regulations. The City is eligible to receive a 35% subsidy of the annual interest payment from the Federal government. In order to receive this subsidy it is necessary for the City to file a claim form annually. G. CONDUIT DEBT OBLIGATIONS From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to private sector entities for the acquisition and construction of industrial and commercial facilities deemed to be in the public interest. The bonds are secured by the property financed and are payable solely from payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 63 H. PENSION PLAN 1. Plan Description The WRS is a cost-sharing, multiple-employer, defined benefit pension plan. WRS benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. Benefit terms may only be modified by the legislature. The retirement system is administered by the Wisconsin Department of Employee Trust Funds (ETF). The system provides coverage to all eligible State of Wisconsin, local government and other public employees. All employees, initially employed by a participating WRS employer on or after July 1, 2011, and expected to work at least 1200 hours a year (880 hours for teachers and school district educational support employees) and expected to be employed for at least one year from employee’s date of hire are eligible to participate in the WRS. ETF issues a standalone Comprehensive Annual Financial Report (CAFR), which can be found at http://etf.wi.gov/publications/cafr.htm. 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 and on or after April 24, 1998, and prior to July 1, 2011, are immediately vested. Participants who initially became WRS eligible on or after July 1, 2011, must have five years of creditable service to be vested. Employees who retire at or after age 65 (54 for protective occupation employees, 62 for elected officials and executive service retirement plan participants, if hired on or before December 31, 2016 are entitled to a retirement benefit based on a formula factor, their final average earnings, and creditable service. Final average earnings is the average of the participant’s three highest earnings periods. Creditable service includes current service and prior service for which a participant received earnings and made contributions as required. Creditable service also includes creditable military service. The retirement benefit will be calculated as a money purchase benefit based on the employee’s contributions plus matching employer’s contributions, with interest, if that benefit is higher than the formula benefit. Vested participants may retire at or after age 55 (50 for protective occupations) and receive an actuarially-reduced benefit. Participants terminating covered employment prior to eligibility for an annuity may either receive employee- required contributions plus interest as a separation benefit or leave contributions on deposit and defer application until eligible to receive a retirement benefit. The WRS also provides death and disability benefits for employees. 2. Post-Retirement Adjustments The Employee Trust Funds Board may periodically adjust annuity payments from the retirement system based on annual investment performance in accordance with s. 40.27, Wis. Stat. An increase (or decrease) in annuity payments may result when investment gains (losses), together with other actuarial experience factors, create a surplus (shortfall) in the reserves, as determined by the system’s consulting actuary. Annuity increases are not based on cost of living or other similar factors. For Core annuities, decreases may be applied only to previously granted increases. By law, Core annuities cannot be reduced to an amount below the original, guaranteed amount (the “floor”) set at retirement. The Core and Variable annuity adjustments granted during recent years are as follows: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 64 3. Contributions Required contributions are determined by an annual actuarial valuation in accordance with Chapter 40 of the Wisconsin Statutes. The employee required contribution is one-half of the actuarially determined contribution rate for general category employees, including teachers, and Executives and Elected Officials. Starting on January 1, 2016, the Executives and Elected Officials category was merged into the General Employee Category. Required contributions for protective employees are the same rate as general employees. Employers are required to contribute the remainder of the actuarially determined contribution rate. The employer may not pay the employee required contribution unless provided for by an existing collective bargaining agreement. During the year ending December 31, 2018, the WRS recognized $3,515,255 in contributions from the City. Contribution rates for the reporting period are: 4. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At December 31, 2018, the City reported an asset of $9,662,570 for its proportionate share of the net pension asset. The net pension asset was measured as of December 31, 2017, and the total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of December 31, 2016 rolled forward to December 31, 2017. No material changes in assumptions or benefit terms occurred between the actuarial valuation date and the measurement date. The City’s proportion of the net pension asset (asset) was based on the City’s share of contributions to the pension plan relative to the contributions of all participating employers. At December 31, 2017, the City’s proportion was 0.32543566%, which was an increase of 0.00556200% from its proportion measured as of December 31, 2016. For the year ended December 31, 2018, the City recognized pension expense of $4,208,528. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 65 At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: $3,515,255 reported as deferred outflows related to pension resulting from the City’s contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability (asset) in the year ended December 31, 2018. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: 5. Actuarial Assumptions The total pension liability in the December 31, 2017, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: ∗ No post-retirement adjustment is guaranteed. Actual adjustments are based on recognized investment return, actuarial experience and other factors. 2.1% is the assumed annual adjustment based on the investment return assumption and the post-retirement discount rate. Actuarial assumptions are based upon an experience study conducted in 2015 using experience from 2012 - 2014. The total pension liability for December 31, 2017 is based upon a roll-forward of the liability calculated from the December 31, 2016 actuarial valuation. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 66 Long-term Expected Return on Plan Assets. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Single Discount Rate. A single discount rate of 7.20% was used to measure the total pension liability. This single discount rate was based on the expected rate of return on pension plan investments of 7.20% and a long-term bond rate of 3.31%. Because of the unique structure of WRS, the 7.20% expected rate of return implies that a dividend of approximately 2.1% will always be paid. For purposes of the single discount rate, it was assumed that the dividend would always be paid. The projection of cash flows used to determine this single discount rate assumed that plan members contributions will be made at the current contribution rate and that employer contributions will be made at rates equal to the difference between actuarially determined contribution rates and the member rate. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments (including expected dividends) of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 67 Sensitivity of the City’s proportionate share of the net pension liability (asset) to changes in the discount rate. The following presents the City’s proportionate share of the net pension liability (asset) calculated using the discount rate of 7.2 percent, as well as what the City’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.20 percent) or 1-percentage-point higher (8.20 percent) than the current rate: Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in separately issued financial statements available at http://etf.wi.gov/publications/cafr.htm. 6. Payables to the Pension Plan At December 31, 2018, the City reported a payable of $656,050 for the outstanding amount of contributions to the pension plan for the year ended December 31, 2018. I. OTHER POSTEMPLOYMENT BENEFITS The City has adopted GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions for the year ended December 31, 2018. This statement revised and established new financial reporting requirements for governments that provide their employees with postemployment benefits. Financial statements for the year ended December 31, 2017 have not been restated. The cumulative effect of this change was to decrease the December 31, 2017 net position by $631,628 as follows: The City reports OPEB related balances at December 31, 2018 as summarized below: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 68 Police-Fire Pension Fund 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 terminated plan. The total expense for 2018 was approximately $23,278. The total estimated future costs to the City of this plan as of December 31, 2018 is not determinable. 1. Single-employer Defined Postemployment Benefit Plan - Health Care Plan Description The City provides health care insurance coverage for employees who retire until they reach the age of 65. The retired employee contributes 100% of the premium for family coverage or 100% of the premium for single coverage. Benefits Provided The City provides medical (including prescription drugs) and dental coverage for retired employees through the City’s self-insured plans. Retirees may continue in the plan by paying 100% of the premium until the retiree is eligible for Medicare. Employees Covered by Benefit Terms At December 31, 2018, the following employees were covered by the benefit terms: Contributions Certain retired plan members and beneficiaries currently receiving benefits are required to contribute specified amounts monthly towards the cost of insurance premiums based on the employee group and their retirement date. City paid medical and dental benefits are paid until the retiree or surviving spouse becomes eligible for Medicare. Net OPEB Liability The City’s total OPEB liability was measured as of December 31, 2017, and the total OPEB liability was determined by an actuarial valuation as of December 31, 2018. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 69 Actuarial Assumptions. The total OPEB liability in the December 31, 2018 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Mortality rates are the same as those used in the December 2015 Wisconsin Retirement System’s annual report. The actuarial assumptions used in the December 31, 2018 valuation were based on the “Wisconsin Retirement System 2015 - 2017 Experience Study”. The long-term expected rate of return on OPEB plan investments was valued at 3.44%. A blend of expected earnings on City funds and the current yield for 20 year tax-exempt AA Municipal bond rate or higher as of the measurement date was used for all years of benefit payments. Discount Rate. The discount rate used to measure the total OPEB liability was 3.44%. The projection of cash flows used to determine the discount rate assumed that City contributions will be made at rates equal to the actuarially determined contribution rates. Changes in the Total OPEB Liability Increase (Decrease) Total OPEB Liability Balance at July 1, 2017 4,544,720$ Changes for the year: Service cost 301,541 Interest 179,462 Effect of assumption changes 140,539 Recognition of assumption changes - Benefit payments (199,000) Net changes 422,542 Balance at June 30, 2018 4,967,262$ Sensitivity of the total OPEB liability to changes in the discount rate. The following presents the total OPEB liability of the City would be if it were calculated using a discount rate that is 1-percentage-point lower (2.44%) or 1- percentage-point higher (4.44%) than the current rate: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 70 Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The following presents the total OPEB liability of the City would be if it were calculated using healthcare cost trend rates that are 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rates: OPEB Expense and Deferred Outflows of Resources Related to OPEB For the year ended December 31, 2018, the City recognized OPEB expense of $496,066. At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: The amounts above reported as deferred outflows of resources related to OPEB will be recognized in other postemployment benefits expense as follows: Payable to the OPEB Plan At December 31, 2018, the City reported no payable of for the outstanding amount of contribution to the Plan required for the year ended December 31, 2018. 2. Local Retiree Life Insurance Fund Plan Description The LRLIF is a multiple-employer defined benefit OPEB plan. LRLIF benefits and other plan provisions are established by Chapter 40 of the Wisconsin Statutes. The Wisconsin Department of Employee Trust Funds (ETF) and the Group Insurance Board have statutory authority for program administration and oversight. The plan provides postemployment life insurance benefits for all eligible employees. OPEB Plan Fiduciary Net Positon ETF issues a standalone Comprehensive Annual Financial Report (CAFR), which can be found at http://etf.wi.gov/publications/cafr.htm. Benefits Provided The LRLIF plan provides fully paid up life insurance benefits for post-age 64 retired employees and pre-65 retirees who pay for their coverage. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 71 Contributions The Group Insurance Board approves contribution rates annually, based on recommendations from the insurance carrier. Recommended rates are based on an annual valuation, taking into consideration an estimate of the present value of future benefits and the present value of future contributions. A portion of employer contributions made during a member’s working lifetime funds a post-retirement benefit. Employers are required to pay the following contributions based on employee contributions for active members to provide them with Basic Coverage after age 65. There are no employer contributions required for pre-age 65 annuitant coverage. If a member retires prior to age 65, they must continue paying the employee premiums until age 65 in order to be eligible for the benefit after age 65. Contribution rates as of December 31, 2018 are: Employee contributions are based upon nine age bands through age 69 and an additional eight age bands for those age 70 and over. Participating employees must pay monthly contribution rates per $1,000 of coverage until the age of 65 (age 70 if active). The employee contribution rates in effect for the year ended December 31, 2017 are listed below: During the reporting period, the LRLIF recognized $13,514 in contributions from the employer. OPEB Liabilities, OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB At December 31, 2018, the City reported a liability of $2,141,107 for its proportionate share of the net OPEB liability. The net OPEB liability was measured as of December 31, 2017, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of December 31, 2016 rolled forward to December 31, 2017. No material changes in assumptions or benefits terms occurred between the actuarial valuation date and the measurement date. The City’s proportion of the net OPEB liability was based on the City’s share of contributions to the OPEB plan relative to the contributions of all participating employers. At December 31, 2017, the City’s proportion was 0.71166700%, which was an increase of 0.01448900% from its proportion measured as of December 31, 2016. For the year ended December 31, 2018, the City recognized OPEB expense of $231,239. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 72 At December 31, 2018, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Actuarial assumptions. The total OPEB liability in the January 1, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement, unless otherwise specified: Long-term expected return on plan assets. The long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. Investments for the LRLIF are held with Securian, the insurance carrier. Interest is calculated and credited to the LRLIF based on the rate of return for a segment of the insurance carriers’ general fund, specifically 10-year A- Bonds (as a proxy, and not tied to any specific investments). The overall aggregate interest rate is calculated using a tiered approach based on the year the funds were originally invested and the rate of return for that year. Investment interest is credited based on the aggregate rate of return and assets are not adjusted to fair market value. Furthermore, the insurance carrier guarantees the principal amounts of the reserves, including all interest previously credited thereto. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 73 Single discount rate. A single discount rate of 3.63% was used to measure the total OPEB liability. The Plan’s fiduciary net position was projected to be insufficient to make all projected future benefit payments of current active and inactive employees. Therefore, the discount rate for calculating the Total OPEB Liability is equal to the single equivalent rate that results in the same actuarial present value as the long-term expected rate of return applied to benefit payments, to the extent that the plan’s fiduciary net position is projected to be sufficient to make projected benefit payments, and the municipal bond rate applied to benefit payment to the extent that the plan’s fiduciary net position is projected to be insufficient. Sensitivity of the City’s proportionate share of net OPEB liability (asset) to changes in the discount rate. The following presents the City’s proportionate share of the net OPEB liability (asset) calculated using the discount rate of 3.63%, as well as what the City’s proportionate share of the net OPEB liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (2.63%) or 1-percentage-point higher (4.63%) than the current rate: OPEB plan fiduciary net position. Detailed information about the OPEB plan’s fiduciary net position is available in separately issued financial statements available at http://etf.wi.gov/publications/cafr.htm. Payable to the OPEB Plan At December 31, 2018, the City reported no payable for the outstanding amount of contribution to the Plan required for the year ended December 31, 2018. J. FUND EQUITY Nonspendable Fund Balance In the fund financial statements, portions of the governmental fund balances are amounts that cannot be spent because they are either 1) not in spendable form or 2) legally or contractually required to be maintained intact. At December 31, 2018, nonspendable fund balance was as follows: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 74 Restricted Fund Balance In the fund financial statements, portions of governmental fund balances are not available for appropriation or are legally restricted for use for a specific purpose. At December 31, 2018, restricted fund balance was as follows: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 75 Committed Fund Balance In the fund financial statements, portions of government fund balances are committed by County Board action. At December 31, 2018, General Fund balance was committed as follows: Assigned Fund Balance Portions of governmental fund balances have been assigned to represent tentative management plans that are subject to change. At December 31, 2018, fund balance was assigned as follows: City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 76 Minimum General Fund Balance Policy The City has also adopted a minimum fund balance policy of 16% of subsequent year budgeted revenues for the general fund. The minimum fund balance is maintained for cash flow and working capital purposes. The minimum fund balance amount is calculated as follows: The City’s unassigned general fund balance of $11,817,119 is above the minimum fund balance amount. Net Position The City reports restricted net position at December 31, 2018 as follows: NOTE 4: OTHER INFORMATION A. TAX INCREMENTAL FINANCING DISTRICTS The City has established separate capital projects funds for the Tax Incremental District (TID) noted below which were created by the City in accordance with Section 66.1105 of the Wisconsin Statutes. At the time the District was created, the property tax base within the District was “frozen” and increment taxes resulting from increases to the property tax base are used to finance District improvements, including principal and interest on long-term debt issued by the City to finance such improvements. The Statutes allow eligible project costs to be incurred up to five years prior to the maximum termination date. The City’s Districts are still eligible to incur project costs. Since creation of the above Districts, the City has provided various financing sources to the TID. The foregoing amounts are not recorded as liabilities in the TID capital project fund but can be recovered by the City from any future excess tax increment revenues. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 77 The intent of the City is to recover the above amounts from future TID surplus funds, if any, prior to termination of the respective Districts. Unless terminated by the City prior thereto, each TID has a statutory termination year as follows: Termination Year B. TAX ABATEMENTS The City has created 33 tax incremental financing districts (the “Districts”) in accordance with Wisconsin State Statute 66.1105, Tax Increment Law. As part of the project plan for the Districts, the City entered into agreements with two developers for the creation of tax base within the Districts. The agreements require the City to make annual repayments of property taxes collected within the Districts to the developers, based upon the terms of the agreements. As tax abatements, those developer payments and the related property tax revenues are not reported as revenues or expenditures in the financial statements. For the year ended December 31, 2018, the City abated property taxes totaling $562,910 under this program which include the following tax abatement agreements:  A property tax abatement of $275,500 to a developer within Tax Incremental District No. 14.  A property tax abatement of $58,700 to a developer within Tax Incremental District No. 21.  A property tax abatement of $188,198 to a developer within Tax Incremental District No. 24.  A property tax abatement of $15,418 to a developer within Tax Incremental District No. 25.  A property tax abatement of $25,094 to a developer within Tax Incremental District No. 30. C. 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. City of Oshkosh, Wisconsin NOTES TO BASIC FINANCIAL STATEMENTS DECEMBER 31, 2018 78 D. CONTINGENCIES 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. An audit under the Uniform Guidance has been conducted but final acceptance is still pending. 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. 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. E. SELF-INSURED MEDICAL CARE COVERAGE PLAN The City maintained a self-insured medical care coverage plan for its employees through December 31, 2015. In 2016, the City began purchasing health coverage from an outside carrier. The City has established the Hospital Insurance Fund (an Internal Service Fund) to account for the financing of its uninsured risk of loss. The Hospital Insurance Fund has an established reserve of $1,814,197 at December 31, 2018 and is reported as the net position balance of the Internal Service Fund. This reserve will be used to finance any future claims of the previous self-insurance plan. The claims liability of $0, reported in the fund at December 31, 2018, 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. There was no change from 2017 to the funds’ claims liability in 2018, with an ending balance of $0. F. SUBSEQUENT EVENT On April 23, 2019 the Common Council authorized issuance of general obligation bonds of $5,450,000, general obligation notes of $8,835,000, storm water utility revenue bonds of $11,085,000, and sewer utility revenue bonds of $16,115,000. On May 14, 2019, the Common Council authorized the Redevelopment Authority to acquire vacant parcels adjacent to Pioneer Drive and the Canadian National Railroad tracks between 6th Avenue and 10th Avenue for $1,500,000. On June 11, 2019, the Common Council authorized the issuance of general obligation bonds of $5,450,000, general obligation promissory notes of $16,405,000, and storm water utility revenue bonds of $8,835,000. The Council also authorized the creation of Tax Incremental District Number 36. On June 25, 2019, the Common Council authorized issuance of water system revenue bonds of $8,220,000 and sewer system revenue bonds of $13,990,000. G. UPCOMING ACCOUNTING PRONOUNCEMENTS In January 2017, the GASB issued Statement No. 84, Fiduciary Activities. The Statement establishes criteria for identifying fiduciary activities and addresses financial reporting for these activities. This statement is effective for reporting periods beginning after June 15, 2018. The City is currently evaluating the impact this standard will have on the financial statements when adopted. In June 2017, the GASB issued Statement No. 87, Leases. The Statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. This statement is effective for reporting periods beginning after December 15, 2019. The City is currently evaluating the impact this standard will have on the financial statements when adopted. REQUIRED SUPPLEMENTARY INFORMATION 79 2018 Total OPEB liability Service cost 301,541$ Interest 179,462 Effect of assumption changes or inputs 140,539 Benefit payments (199,000) Net change in total OPEB liability 422,542 Total OPEB liability - beginning 4,544,720 Covered-employee payroll 37,913,920$ City's total OPEB liability as a percentage of covered-employee payroll 13.10% * The amounts presented for each fiscal year were determined as of the current fiscal year end. Amounts for prior years were not available. See notes to required supplementary information. 80 Proportionate Share of the Net Plan Fiduciary Proportionate Pension Liability Net Position as a Proportion of Share of the Covered (Asset) as a Percentage of the Plan the Net Pension Net Pension Payroll Percentage of Total Pension Year Ending Liability (Asset)Liability (Asset)(plan year)Covered Payroll Liability (Asset) 12/31/14 0.31842486%(7,821,386)$ 34,551,515$ 22.64%102.74% 12/31/15 0.31657015%5,144,203 34,050,370 15.11%98.20% 12/31/16 0.31987366%2,636,523 35,129,816 7.51%99.12% 12/31/17 0.32543566%(9,662,570) 36,243,909 26.66%102.93% Contributions in Relation to the Contributions Contractually Contractually Contribution Covered as a Percentage of Fiscal Required Required Deficiency Payroll Covered Year Ending Contributions Contributions (Excess)(fiscal year)Payroll 12/31/15 3,014,493$ 3,014,493$ -$ 34,050,370$ 8.85% 12/31/16 3,073,752 3,073,752 - 35,129,816 8.75% 12/31/17 3,446,908 3,446,908 - 36,243,909 9.51% 12/31/18 3,515,255 3,515,255 - 35,645,932 9.86% See notes to required supplementary information. 81 See notes to required supplementary information. City of Oshkosh, Wisconsin NOTES TO REQUIRED SUPPLEMENTARY INFORMATION DECEMBER 31, 2018 82 A. GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 75 The City implemented GASB Statement 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions, for the fiscal year ended December 31, 2018. Information for prior years is not available. B. WISCONSIN RETIREMENT SYSTEM There were no changes of benefit terms for any participating employer in the WRS. The City is required to present the last ten fiscal years of data; however accounting standards allow the presentation of as many years as are available until ten fiscal years are presented. SUPPLEMENTARY INFORMATION 83 Special Capital Revenue Projects Permanent Total ASSETS Cash and investments 10,393,637$ 38,382,954$ 10,575,526$ 59,352,117$ Receivables Taxes and special charges 6,784,400 4,710,374 - 11,494,774 Accounts 1,025,338 32,646 - 1,057,984 Loans 4,129,693 - - 4,129,693 Due from other funds 219,559 1,343,000 - 1,562,559 Due from other governments - 532,853 - 532,853 Deposit with GO HNI 204,380 - - 204,380 LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable 360,448$ 2,343,971$ 190$ 2,704,609$ Due to other funds 623,544 10,942,823 219,559 11,785,926 Special deposits 10,001 300,779 - 310,780 Unearned revenues - 26,000 - 26,000 Total liabilities 993,993 13,613,573 219,749 14,827,315 Deferred inflows of resources Property taxes levied for subsequent year 6,784,400 4,710,374 - 11,494,774 Special charges assessed - 250,000 - 250,000 Loans receivable 4,129,693 - - 4,129,693 Total deferred inflows of resources 10,914,093 4,960,374 - 15,874,467 Fund balances Restricted 5,915,198 14,305,655 10,355,777 30,576,630 Committed 5,000,463 - - 5,000,463 Assigned - 22,279,952 - 22,279,952 Unassigned (66,740) (10,157,727) - (10,224,467) Total fund balances 10,848,921 26,427,880 10,355,777 47,632,578 Total liabilities, deferred inflows of resources, 84 Committee Business on Improvement Street Aging District Recycling Lighting ASSETS Cash and investments 104,729$ 69,064$ 1,124,321$ 146,469$ Receivables Taxes and special charges 320,400 - - 1,052,000 Accounts 7,480 2,470 250 - Loans - - - - Due from other funds - - - - Due from other governments - - - - Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable 4,901$ 8,810$ 2,888$ 85,614$ Due to other funds - - - - Special deposits - - - - Unearned revenues - - - - Total liabilities 4,901 8,810 2,888 85,614 Deferred inflows of resources Property taxes levied for subsequent year 320,400 - - 1,052,000 Grants - - - - Loans receivable - - - - Total deferred inflows of resources 320,400 - - 1,052,000 Fund balances Restricted 107,308 62,724 1,121,683 - Committed - - - 60,855 Assigned - - - - Unassigned - - - - Total fund balances 107,308 62,724 1,121,683 60,855 Total liabilities, deferred inflows 85 Local Senior Community Rental Revolving Center Development Rehabilitation Loan Revolving Library Museum Cemetery Block Grant Loan Program Program Loans 341,022$ 615,559$ 57,465$ -$ 221,281$ 1,648,051$ 95,886$ 2,696,100 977,700 304,000 - - - - 257,903 - - 313,157 - - 2,333 - - - 3,949,693 50,000 130,000 - 73,649 145,552 358 - - - - - - - - - - - - - - - - - - 67,137$ 14,477$ 6,148$ 45,769$ -$ -$ 244$ - - - 183,396 - - - - - - - 1 - - - - - - - - - 67,137 14,477 6,148 229,165 1 - 244 2,696,100 977,700 304,000 - - - - - - - - - - - - - - 3,949,693 50,000 130,000 - 2,696,100 977,700 304,000 3,949,693 50,000 130,000 - 605,437 746,634 51,675 83,992 221,280 1,648,051 - - - - - - - 97,975 - - - - - - - - - - - - - - 605,437 746,634 51,675 83,992 221,280 1,648,051 97,975 86 Police Fire/Project Bicycle Special Safety D.A.R.E. ASSETS Cash and investments 16,055$ 88,267$ 246,205$ 3$ Receivables Taxes and special charges - - - - Accounts - - - - Loans - - - - Due from other funds - - - - Due from other governments - - - - Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable -$ 6,000$ 1,316$ -$ Due to other funds - - - - Special deposits - - - - Unearned revenues - - - - Total liabilities - 6,000 1,316 - Deferred inflows of resources Property taxes levied for subsequent year - - - - Grants - - - - Loans receivable - - - - Total deferred inflows of resources - - - - Fund balances Restricted - 82,267 244,889 3 Committed 16,055 - - - Assigned - - - - Unassigned - - - - Total fund balances 16,055 82,267 244,889 3 Total liabilities, deferred inflows 87 Federal Cable TV EMS Community Parks Police Asset Police Asset Franchise Fire Historical Develop Revenue Forfeiture Forfeiture Escrow Grant Marker Special Facilities 36,939$ 18,546$ 16,287$ 24,673$ 23,559$ -$ 623,543$ - - - - - - - - - - - - 354,769 11,200 - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$ -$ -$ 854$ -$ 43,816$ 2,731$ - - - - - 381,560 - - - 10,000 - - - - - - - - - - - - - 10,000 854 - 425,376 2,731 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 36,939 18,546 - 23,819 23,559 - 632,012 - - 6,287 - - - - - - - - - - - - - - - - (70,607) - 36,939 18,546 6,287 23,819 23,559 (70,607) 632,012 88 Public Pollock Leach Works Garbage Water Amphitheater Special Disposal Park ASSETS Cash and investments 24,611$ -$ 181,883$ 48,470$ Receivables Taxes and special charges 14,000 - 1,331,200 64,000 Accounts 318 62,455 13,003 - Loans - - - - Due from other funds - - - - Due from other governments - - - - Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable 863$ -$ 67,884$ 966$ Due to other funds - 58,099 - - Special deposits - - - - Unearned revenues - - - - Total liabilities 863 58,099 67,884 966 Deferred inflows of resources Property taxes levied for subsequent year 14,000 - 1,331,200 64,000 Grants - - - - Loans receivable - - - - Total deferred inflows of resources 14,000 - 1,331,200 64,000 Fund balances Restricted - - - - Committed 24,066 - 127,002 47,504 Assigned - - - - Unassigned - 4,356 - - Total fund balances 24,066 4,356 127,002 47,504 Total liabilities, deferred inflows 89 Total Nonmajor Community Healthy Special Traffic Safety Neighborhood Rental Revenue Grant Initiative Inspections Funds -$ 4,620,749$ -$ 10,393,637$ - - 25,000 6,784,400 - - - 1,025,338 - - - 4,129,693 - - - 219,559 - - - - - 204,380 - 204,380 -$ 30$ -$ 360,448$ - - 489 623,544 - - - 10,001 - - - - - 30 489 993,993 - - 25,000 6,784,400 - - - - - - - 4,129,693 - - 25,000 10,914,093 - 204,380 - 5,915,198 - 4,620,719 - 5,000,463 - - - - - - (489) (66,740) - 4,825,099 (489) 10,848,921 90 Advance Payments Sidewalk Street Street Special Construction Improvement Tree Assessment ASSETS Cash and investments 86,244$ 6,955,395$ -$ 136,844$ Receivables Taxes and special charges - - - - Accounts - - 10,000 - Loans - - - - Due from other funds - - - - Due from other governments - - - - Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable -$ -$ -$ -$ Due to other funds - - 5,226 - Special deposits - 3,500 - 136,844 Unearned revenues - - - - Total liabilities - 3,500 5,226 136,844 Deferred inflows of resources Property taxes levied for subsequent year - - - - Grants - - - - Loans receivable - - - - Total deferred inflows of resources - - - - Fund balances Restricted - - - - Committed - - - - Assigned 86,244 6,951,895 4,774 - Unassigned - - - - Total fund balances 86,244 6,951,895 4,774 - Total liabilities, deferred inflows 91 Park Mct Improvement Park Rochlin Golf Course Contract and Subdivision Park Equipment Senior Control Equipment Acquisition Improvement Smokestack Improvement Center 5,867,397$ 10,289,680$ 595,160$ 372,999$ 2,000$ 3,275$ 130,644$ 10,000 975,000 15,000 - - - - 6,093 16,538 15 - - - - - - - - - - - - - - - - - - 250,000 - - - - - - - - - - - - - 1,965,671$ 306,454$ 14,208$ -$ -$ -$ -$ - - - - - - - 159,435 - - - - - - - - - - - - - 2,125,106 306,454 14,208 - - - - 10,000 975,000 15,000 - - - - 250,000 - - - - - - - - - - - - - 260,000 975,000 15,000 - - - - - - - - - - - - - - - - - - 3,748,384 9,999,764 580,967 372,999 2,000 3,275 130,644 - - - - - - - 3,748,384 9,999,764 580,967 372,999 2,000 3,275 130,644 92 Grand TIF #7 Opera Facility Parking Ramp SW Industrial House Improvements Improvements Park ASSETS Cash and investments 85,206$ -$ 318,030$ -$ Receivables Taxes and special charges 2,000 - - - Accounts - - - - Loans - - - - Due from other funds - - - - Due from other governments - - - - Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable 3,567$ -$ 663$ -$ Due to other funds - - - - Special deposits - - - - Unearned revenues - - - - Total liabilities 3,567 - 663 - Deferred inflows of resources Property taxes levied for subsequent year 2,000 - - - Grants - - - - Loans receivable - - - - Total deferred inflows of resources 2,000 - - - Fund balances Restricted - - - - Committed - - - - Assigned 81,639 - 317,367 - Unassigned - - - - Total fund balances 81,639 - 317,367 - Total liabilities, deferred inflows 93 TIF #8 TIF #10 TIF #11 TIF #12 TIF #13 TIF #14 TIF #15 S Aviation Main and Oshkosh Division Marion Road/Mercy Park Industrial Washington Office Center Street Pearl Ave.Medical Plaza 104,674$ 14,230$ 35,876$ 741,898$ 1,805,508$ 759,800$ 2,448,566$ - 12,468 6,271 119,734 266,819 501,396 206,173 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -$ -$ -$ -$ -$ 256$ -$ - - - - - - - - - - - 1,000 - - - - - - 26,000 - - - - - - 27,000 256 - - 12,468 6,271 119,734 266,819 501,396 206,173 - - - - - - - - - - - - - - - 12,468 6,271 119,734 266,819 501,396 206,173 104,674 14,230 35,876 741,898 1,778,508 759,544 2,448,566 - - - - - - - - - - - - - - - - - - - - - 104,674 14,230 35,876 741,898 1,778,508 759,544 2,448,566 94 TIF #16 TIF #17 TIF #18 TIF #19 100 Block City SW Industrial NW Industrial Redevelopment Centre #3 Expansion ASSETS Cash and investments 922,356$ -$ -$ 428,800$ Receivables Taxes and special charges 129,008 279,801 444,389 209,899 Accounts - - - - Loans - - - - Due from other funds - 1,343,000 - - Due from other governments - - - - Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable -$ -$ -$ -$ Due to other funds - 548,983 1,697,451 - Special deposits - - - - Unearned revenues - - - - Total liabilities - 548,983 1,697,451 - Deferred inflows of resources Property taxes levied for subsequent year 129,008 279,801 444,389 209,899 Grants - - - - Loans receivable - - - - Total deferred inflows of resources 129,008 279,801 444,389 209,899 Fund balances Restricted 922,356 794,017 - 428,800 Committed - - - - Assigned - - - - Unassigned - - (1,697,451) - Total fund balances 922,356 794,017 (1,697,451) 428,800 Total liabilities, deferred inflows 95 TIF #20 TIF #21 TIF #23 TIF #24 TIF #25 TIF #26 TIF #27 South Side Fox River SW Industrial Oshkosh City Center Aviation North Main Fox River Corridor Park Corp Hotel Business Park Street 6,223,686$ -$ -$ 32,538$ -$ -$ -$ - 314,758 - 211,184 251,323 - 178,660 - - - - - - - - - - - - - - - - - - - - - - - 32,853 - - - - - - - - - - - 1,186$ 17,993$ 6,010$ -$ -$ -$ -$ - 461,089 2,235,628 - 1,766,237 1,545,013 2,205,637 - - - - - - - - - - - - - - 1,186 479,082 2,241,638 - 1,766,237 1,545,013 2,205,637 - 314,758 - 211,184 251,323 - 178,660 - - - - - - - - - - - - - - - 314,758 - 211,184 251,323 - 178,660 6,222,500 - - 32,538 - - - - - - - - - - - - - - - - - - (479,082) (2,208,785) - (1,766,237) (1,545,013) (2,205,637) 6,222,500 (479,082) (2,208,785) 32,538 (1,766,237) (1,545,013) (2,205,637) 96 TIF #28 TIF #29 TIF #30 TIF #31 Beach Building Morgan Washington Buckstaff Redevelopment District Building Redevelopment ASSETS Cash and investments 19,365$ -$ -$ -$ Receivables Taxes and special charges 45,399 5,270 40,950 473,145 Accounts - - - - Loans - - - - Due from other funds - - - - Due from other governments - - - 250,000 Deposit with GO HNI - - - - LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES Liabilities Accounts payable -$ -$ 1,638$ 10,185$ Due to other funds - 8,415 85,864 332,782 Special deposits - - - - Unearned revenues - - - - Total liabilities - 8,415 87,502 342,967 Deferred inflows of resources Property taxes levied for subsequent year 45,399 5,270 40,950 473,145 Grants - - - - Loans receivable - - - - Total deferred inflows of resources 45,399 5,270 40,950 473,145 Fund balances Restricted 19,365 - - - Committed - - - - Assigned - - - - Unassigned - (8,415) (87,502) (92,967) Total fund balances 19,365 (8,415) (87,502) (92,967) Total liabilities, deferred inflows 97 Total Nonmajor TIF #32 TIF #33 TIF #34 TIF #35 Capital Granary Lamico Oshkosh Corp Oshkosh Ave Projects Redevelopment Redevelopment Headquarters Corridor Funds Total -$ 2,783$ -$ -$ 38,382,954$ 48,776,591$ 11,727 - - - 4,710,374 11,494,774 - - - - 32,646 1,057,984 - - - - - 4,129,693 - - - - 1,343,000 1,562,559 - - - - 532,853 532,853 - - - - - 204,380 -$ -$ 16,140$ -$ 2,343,971$ 2,704,419$ 644 - 34,274 15,580 10,942,823 11,566,367 - - - - 300,779 310,780 - - - - 26,000 26,000 644 - 50,414 15,580 13,613,573 14,607,566 11,727 - - - 4,710,374 11,494,774 - - - - 250,000 250,000 - - - - - 4,129,693 11,727 - - - 4,960,374 15,874,467 - 2,783 - - 14,305,655 20,220,853 - - - - - 5,000,463 - - - - 22,279,952 22,279,952 (644) - (50,414) (15,580) (10,157,727) (10,224,467) (644) 2,783 (50,414) (15,580) 26,427,880 37,276,801 98 Special Capital Revenue Projects Permanent Total REVENUES Taxes 6,604,000$ 7,689,357$ -$ 14,293,357$ Special assessments 132,860 - - 132,860 Intergovernmental 2,805,253 3,217,326 - 6,022,579 Licenses and permits 141 - - 141 Fines and forfeits 2,442 - - 2,442 Public charges for services 1,208,982 11,210 - 1,220,192 Miscellaneous 2,070,544 1,819,545 30,272 3,920,361 Total revenues 12,824,222 12,737,438 30,272 25,591,932 EXPENDITURES Current Public safety 122,635 - - 122,635 Public works 3,243,909 1,179,175 - 4,423,084 Health and human services 936,829 1,331 - 938,160 Culture and recreation 5,336,476 49,914 154,445 5,540,835 Conservation and development 2,645,740 1,562,184 - 4,207,924 Debt service Principal - 3,476,904 - 3,476,904 Interest and fiscal charges - 716,241 - 716,241 Capital outlay 557,499 12,258,742 - 12,816,241 Total expenditures 12,843,088 19,244,491 154,445 32,242,024 Excess of revenues under expenditures (18,866) (6,507,053) (124,173) (6,650,092) OTHER FINANCING SOURCES (USES) Long-term debt issued - 9,206,500 - 9,206,500 Proceeds from sale of capital assets 7,000 - - 7,000 Transfers in 4,170,025 1,804,764 - 5,974,789 Transfers out (947,472) (4,415,887) (142,902) (5,506,261) Total other financing sources (uses)3,229,553 6,595,377 (142,902) 9,682,028 Net change in fund balances 3,210,687 88,324 (267,075) 3,031,936 Fund balances - January 1 7,638,234 26,339,556 10,622,852 44,600,642 99 Committee Business on Improvement Street Aging District Recycling Lighting REVENUES Taxes 312,100$ -$ -$ 1,052,000$ Special assessments - 132,860 - - Intergovernmental 81,163 - 236,969 - Licenses and permits - - - - Fines and forfeits - - - - Public charges for services 95 - - - Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous 143,422 53,770 954,528 - Total revenues 536,780 186,630 1,191,497 1,052,000 EXPENDITURES Current Public safety - - - - Public works - - 761,617 1,002,880 Health and human services 514,049 - - - Culture and recreation - - - - Conservation and development - 190,126 - - Debt service Principal - - - - Interest and fiscal charges - - - - Capital outlay - - 212,315 - Total expenditures 514,049 190,126 973,932 1,002,880 Excess of revenues over (under) expenditures 22,731 (3,496) 217,565 49,120 OTHER FINANCING SOURCES (USES) Long-term debt issued - - - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 22,731 (3,496) 217,565 49,120 Fund balances - January 1 84,577 66,220 904,118 11,735 100 Local Senior Community Rental Revolving Center Development Rehabilitation Loan Revolving Library Museum Cemetery Block Grant Loan Program Program Loans 2,627,000$ 907,500$ 302,700$ -$ -$ -$ -$ - - - - - - - 301,658 28,250 - 1,018,427 - - 8,025 - - - - - - - - - - - - - - 644,955 44,594 - 150 - - - - - - - - - - - - - - - - - 7,325 140,288 79,272 155,625 - - 70,413 3,580,938 1,120,632 381,972 1,174,202 - - 78,438 - - - - - - - - - - - - - - - - 382,115 - - - 40,665 3,454,952 1,213,805 - - - - - - - - 1,077,835 - 200,000 - - - - - - - - - - - - - - - - 13,120 - 152,292 - - - 3,454,952 1,226,925 382,115 1,230,127 - 200,000 40,665 125,986 (106,293) (143) (55,925) - (200,000) 37,773 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,000 - - - - 151,873 28,500 - - - - - (47,472) - - - (900,000) - - 104,401 28,500 7,000 - (900,000) - 125,986 (1,892) 28,357 (48,925) - (1,100,000) 37,773 479,451 748,526 23,318 132,917 221,280 2,748,051 60,202 101 Police Fire/Project Bicycle Special Safety D.A.R.E. REVENUES Taxes -$ -$ -$ -$ Special assessments - - - - Intergovernmental - 14,859 75,316 - Licenses and permits 141 - - - Fines and forfeits - - - - Public charges for services - - 1,088 - Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous - 119,623 17,450 - Total revenues 141 134,482 93,854 - EXPENDITURES Current Public safety - 49,069 64,824 - Public works - - - - Health and human services - - - - Culture and recreation - - - - Conservation and development - - - - Debt service Principal - - - - Interest and fiscal charges - - - - Capital outlay - 8,500 129,846 - Total expenditures - 57,569 194,670 - Excess of revenues over (under) expenditures 141 76,913 (100,816) - OTHER FINANCING SOURCES (USES) Long-term debt issued - - - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 141 76,913 (100,816) - Fund balances - January 1 15,914 5,354 345,705 3 102 Federal Cable TV EMS Community Parks Police Asset Police Asset Franchise Fire Historical Develop Revenue Forfeiture Forfeiture Escrow Grant Marker Special Facilities -$ -$ -$ -$ -$ -$ -$ - - - - - - - - - - - - 770,336 5,054 - - - - - - - 2,442 - - - - - - - - - - - - 196,234 - - - - - - - - - - - - - - - - 204 6,356 - 4,010 172,550 2,442 - 204 6,356 - 774,346 373,838 329 - - 8,413 - - - - - - - - - - - - - - - - - - - - - - - 220,027 - - - - - 837,592 - - - - - - - - - - - - - - - - - - - - - 35,525 329 - - 8,413 - 837,592 255,552 2,113 - 204 (2,057) - (63,246) 118,286 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2,113 - 204 (2,057) - (63,246) 118,286 34,826 18,546 6,083 25,876 23,559 (7,361) 513,726 103 Public Pollock Leach Works Garbage Water Amphitheater Special Disposal Park REVENUES Taxes 14,000$ -$ 1,324,700$ 64,000$ Special assessments - - - - Intergovernmental - 265,196 - - Licenses and permits - - - - Fines and forfeits - - - - Public charges for services 49,871 - 54,406 217,589 Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous 23,153 - 10,500 95,527 Total revenues 87,024 265,196 1,389,606 377,116 EXPENDITURES Current Public safety - - - - Public works - 198,789 1,280,623 - Health and human services - - - - Culture and recreation 72,958 - - 374,245 Conservation and development - - - - Debt service Principal - - - - Interest and fiscal charges - - - - Capital outlay - - - 5,901 Total expenditures 72,958 198,789 1,280,623 380,146 Excess of revenues over (under) expenditures 14,066 66,407 108,983 (3,030) OTHER FINANCING SOURCES (USES) Long-term debt issued - - - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in 48,289 8,071 - - Transfers out - - - - Total other financing sources (uses)48,289 8,071 - - Net change in fund balances 62,355 74,478 108,983 (3,030) Fund balances - January 1 (38,289) (70,122) 18,019 50,534 104 Total Nonmajor Community Healthy Special Traffic Safety Neighborhood Rental Revenue Grant Initiative Inspections Funds -$ -$ -$ 6,604,000$ - - - 132,860 - - - 2,805,253 - - - 141 - - - 2,442 - - - 1,208,982 - - - - - - - - - 16,528 - 2,070,544 - 16,528 - 12,824,222 - - - 122,635 - - - 3,243,909 - - - 936,829 - - 489 5,336,476 - 340,187 - 2,645,740 - - - - - - - - - - - 557,499 - 340,187 489 12,843,088 - (323,659) (489) (18,866) - - - - - - - - - - - - - - - - - - - 7,000 395 3,932,897 - 4,170,025 - - - (947,472) 395 3,932,897 - 3,229,553 395 3,609,238 (489) 3,210,687 (395) 1,215,861 - 7,638,234 105 Advance Payments Sidewalk Street Street Special Construction Improvement Tree Assessment REVENUES Taxes 55,000$ 16,600$ -$ -$ Special assessments - - - - Intergovernmental - 134,189 22,500 - Licenses and permits - - - - Fines and forfeits - - - - Public charges for services - - - - Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous - - 5,908 - Total revenues 55,000 150,789 28,408 - EXPENDITURES Current Public safety - - - - Public works - - - - Health and human services - - - - Culture and recreation - - 23,634 - Conservation and development - - - - Debt service Principal - - - - Interest and fiscal charges - - - - Capital outlay 797,448 5,075,251 - - Total expenditures 797,448 5,075,251 23,634 - Excess of revenues over (under) expenditures (742,448) (4,924,462) 4,774 - OTHER FINANCING SOURCES (USES) Long-term debt issued 312,800 2,620,300 - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in - - 7,377 - Transfers out - - - - Total other financing sources (uses)312,800 2,620,300 7,377 - Net change in fund balances (429,648) (2,304,162) 12,151 - Fund balances - January 1 515,892 9,256,057 (7,377) - 106 Park Mct Improvement Park Rochlin Golf Course Contract and Subdivision Park Equipment Senior Control Equipment Acquisition Improvement Smokestack Improvement Center 10,000$ 875,300$ -$ -$ -$ -$ -$ - - - - - - - - 4,058 - - - - - - - - - - - - - - - - - - - - - 11,210 - - - - - - - - - - - - - - - - - - 545,494 35,275 25,747 9,600 - - - 555,494 914,633 36,957 9,600 - - - - - - - - - - 260,800 901,362 - - - - - - - - - - - 1,331 - - - - - - - - - - 1,991 - - - - - - - - - - - - - - - - - - 3,325,223 915,571 - - - - 260,800 4,226,585 915,571 1,991 - - 1,331 294,694 (3,311,952) (878,614) 7,609 - - (1,331) - 5,519,100 754,300 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 250,000 1,435,956 111,431 - - - - - - - - - - - 250,000 6,955,056 865,731 - - - - 544,694 3,643,104 (12,883) 7,609 - - (1,331) 3,203,690 6,356,660 593,850 365,390 2,000 3,275 131,975 107 Grand TIF #7 Opera Facility Parking Ramp SW Industrial House Improvements Improvements Park REVENUES Taxes 600$ -$ -$ 3,820,257$ Special assessments - - - - Intergovernmental - - - 112,640 Licenses and permits - - - - Fines and forfeits - - - - Public charges for services - - - - Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous 25,001 29,351 121,930 - Total revenues 25,601 29,351 121,930 3,932,897 EXPENDITURES Current Public safety - - - - Public works - - 17,013 - Health and human services - - - - Culture and recreation 26,280 - - - Conservation and development - - - - Debt service Principal - - - - Interest and fiscal charges - - - - Capital outlay - 19,354 - - Total expenditures 26,280 19,354 17,013 - Excess of revenues over (under) expenditures (679) 9,997 104,917 3,932,897 OTHER FINANCING SOURCES (USES) Long-term debt issued - - - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - (121,559) - (3,932,897) Total other financing sources (uses)- (121,559) - (3,932,897) Net change in fund balances (679) (111,562) 104,917 - Fund balances - January 1 82,318 111,562 212,450 - 108 TIF #8 TIF #10 TIF #11 TIF #12 TIF #13 TIF #14 S Aviation Main and Oshkosh Division Marion Road/Mercy Industrial Washington Office Center Street Pearl Ave.Medical -$ 13,652$ 12,879$ 115,998$ 299,651$ 214,164$ - - - - - - - 85 - 389 1,032 110 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14,492 - - 13,737 12,879 116,387 315,175 214,274 - - - - - - - - - - - - - - - - - - - - - - - - - 150 150 62,363 46,299 124,300 60,000 - - 30,000 1,030,000 90,000 4,848 - - 3,089 165,148 17,755 - - - - - - 64,848 150 150 95,452 1,241,447 232,055 (64,848) 13,587 12,729 20,935 (926,272) (17,781) - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (64,848) 13,587 12,729 20,935 (926,272) (17,781) 169,522 643 23,147 720,963 2,704,780 777,325 109 TIF #15 TIF #16 TIF #17 TIF #18 Park 100 Block City SW Industrial Plaza Redevelopment Centre #3 REVENUES Taxes 202,463$ 126,575$ 282,837$ 519,646$ Special assessments - - - - Intergovernmental 45,437 550 45,847 1,462 Licenses and permits - - - - Fines and forfeits - - - - Public charges for services - - - - Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous - - - - Total revenues 247,900 127,125 328,684 521,108 EXPENDITURES Current Public safety - - - - Public works - - - - Health and human services - - - - Culture and recreation - - - - Conservation and development 71,512 60,878 150 150 Debt service Principal 40,000 205,000 340,000 280,000 Interest and fiscal charges 5,845 30,003 106,154 41,475 Capital outlay - - - - Total expenditures 117,357 295,881 446,304 321,625 Excess of revenues over (under) expenditures 130,543 (168,756) (117,620) 199,483 OTHER FINANCING SOURCES (USES) Long-term debt issued - - - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 130,543 (168,756) (117,620) 199,483 Fund balances - January 1 2,318,023 1,091,112 911,637 (1,896,934) 110 TIF #19 TIF #20 TIF #21 TIF #23 TIF #24 TIF #25 TIF #26 NW Industrial South Side Fox River SW Industrial Oshkosh City Center Aviation Expansion Fox River Corridor Park Corp Hotel Business Park 222,770$ -$ 467,396$ -$ 150$ 261,179$ -$ - - - - - - - 6,889 954,424 474 891,945 8,488 3,324 705,126 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 60,000 167,935 776,112 - - 2,700 229,659 1,014,424 635,805 1,668,057 8,638 264,503 707,826 - - - - - - - - - - - - - - - - - - - - - - - - - - - - 57,635 46,545 35,070 866,518 151 16,308 581 67,360 350,000 90,000 321,735 - 222,264 350,545 13,566 88,473 54,269 91,365 - 32,289 61,962 - 561,703 769,829 794,363 - - - 138,561 1,046,721 949,168 2,073,981 151 270,861 413,088 91,098 (32,297) (313,363) (405,924) 8,487 (6,358) 294,738 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (111,431) - - - - - - (111,431) - - - - - 91,098 (143,728) (313,363) (405,924) 8,487 (6,358) 294,738 337,702 6,366,228 (165,719) (1,802,861) 24,051 (1,759,879) (1,839,751) 111 FOR THE YEAR ENDED DECEMBER 31, 2018 TIF #27 TIF #28 TIF #29 TIF #30 North Main Beach Building Morgan Washington Street Redevelopment District Building REVENUES Taxes 122,592$ 39,281$ 2,867$ 7,500$ Special assessments - - - - Intergovernmental 28,357 - - - Licenses and permits - - - - Fines and forfeits - - - - Public charges for services - - - - Intergovernmental charges for services - - - - Interdepartmental charges for services - - - - Miscellaneous - - - - Total revenues 150,949 39,281 2,867 7,500 EXPENDITURES Current Public safety - - - - Public works - - - - Health and human services - - - - Culture and recreation - - - - Conservation and development 9,573 151 150 36,374 Debt service Principal - - - - Interest and fiscal charges - - - - Capital outlay - - - - Total expenditures 9,573 151 150 36,374 Excess of revenues over (under) expenditures 141,376 39,130 2,717 (28,874) OTHER FINANCING SOURCES (USES) Long-term debt issued - - - - Capital lease proceeds - - - - Premium on debt issued - - - - Payment to advance refunding escrow agent - - - - Proceeds from sale of capital assets - - - - Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - Net change in fund balances 141,376 39,130 2,717 (28,874) Fund balances - January 1 (2,347,013) (19,765) (11,132) (58,628) Fund balances - December 31 (2,205,637)$ 19,365$ (8,415)$ (87,502)$ 112 Total Nonmajor TIF #31 TIF #32 TIF #33 TIF #34 TIF #35 Capital Buckstaff Granary Lamico Oshkosh Corp Projects Redevelopment Redevelopment Redevelopment Headquarters Corridor Funds Total -$ -$ -$ -$ -$ 7,689,357$ 14,293,357$ - - - - - - 132,860 250,000 - - - - 3,217,326 6,022,579 - - - - - - 141 - - - - - - 2,442 - - - - - 11,210 1,220,192 - - - - - - - - - - - - - - - - - - - 1,819,545 3,890,089 250,000 - - - - 12,737,438 25,561,660 - - - - - - 122,635 - - - - - 1,179,175 4,423,084 - - - - - 1,331 938,160 - - - - - 49,914 5,386,390 58,606 150 435 50,414 15,580 1,562,184 4,207,924 - - - - - 3,476,904 3,476,904 - - - - - 716,241 716,241 - - - - - 12,258,742 12,816,241 58,606 150 435 50,414 15,580 19,244,491 32,087,579 191,394 (150) (435) (50,414) (15,580) (6,507,053) (6,525,919) - - - - - 9,206,500 9,206,500 - - - - - - - - - - - - - - - - - - - - - - - - - - - 7,000 - - - - - 1,804,764 5,974,789 (250,000) - - - - (4,415,887) (5,363,359) (250,000) - - - - 6,595,377 9,824,930 (58,606) (150) (435) (50,414) (15,580) 88,324 3,299,011 (34,361) (494) 3,218 - - 26,339,556 33,977,790 113 114 115 Oshkosh Parking Redevelopment Industrial Utility Project Park OPERATING REVENUES Charges for services 121,801$ -$ -$ Taxes - 1,757,572 - Fines, forfeitures and penalties 18,333 - - Other - 99,359 17,559 Total operating revenues 140,134 1,856,931 17,559 OPERATING EXPENSES Operation and maintenance 113,666 1,520,656 3,518 Depreciation 147,797 158,225 - Total operating expenses 261,463 1,678,881 3,518 Operating income (loss)(121,329) 178,050 14,041 NONOPERATING REVENUES (EXPENSES) Gain on disposal of capital assets - - 131,076 Interest and fiscal charges (2,064) (87,303) (29,437) Total nonoperating revenues (expenses)(2,064) (87,303) 101,639 Income (loss) before transfers (123,393) 90,747 115,680 Transfers in - - - Transfers out - - - Change in net position (123,393) 90,747 115,680 Net position - January 1, as originally presented 3,821,005 8,753,638 2,757,546 Cumulative effect of change in accounting principle (4,887) (6,817) - Net position - January 1, as restated 3,816,118 8,746,821 2,757,546 116 Golf Inspection Totals Course Services 2018 2017 -$ 1,211,846$ 1,333,647$ 1,969,043$ - - 1,757,572 1,716,066 - - 18,333 25,435 497 - 117,415 140,629 497 1,211,846 3,226,967 3,851,173 103,719 908,813 2,650,372 3,032,949 - - 306,022 334,099 103,719 908,813 2,956,394 3,367,048 (103,222) 303,033 270,573 487,125 2,163,840 - 2,294,916 - - - (118,804) (90,502) 2,163,840 - 2,176,112 (90,502) 2,060,618 303,033 2,446,685 396,623 - - - 35,491 (350,000) (21,400) (371,400) - 1,710,618 281,633 2,075,285 432,114 361,144 621,751 16,315,084 15,882,970 - (75,991) (87,695) - 361,144 545,760 16,227,389 15,882,970 117 Sale of capital assets - - 234,429 Other postemployment benefits 397 446 - Customer deposits - - - 118 3,295,431 - 3,529,860 - - 5,599 6,442 - (2,596) - (2,596) 2,596 119 120 Hospital Police Fire Workman's Insurance Pension Pension Compensation Total OPERATING REVENUES Charges for services -$ -$ -$ 67,198$ 67,198$ Other - - - 629,367 629,367 Total operating revenues - - - 696,565 696,565 OPERATING EXPENSES Claims and administration 76,355 14,126 9,152 518,691 618,324 Operating income (loss)(76,355) (14,126) (9,152) 177,874 78,241 NONOPERATING REVENUES (EXPENSES) General property taxes - - - 18,200 18,200 Interest income - 20,999 4,454 - 25,453 Total nonoperating revenues (expenses)- 20,999 4,454 18,200 43,653 Change in net position (76,355) 6,873 (4,698) 196,074 121,894 Net position - January 1, as originally presented 1,890,552 566,150 148,808 143,074 2,748,584 Cumulative effect of change in accounting principle - - - (8,635) (8,635) Net position - January 1, as restated 1,890,552 566,150 148,808 134,439 2,739,949 121 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES Operating income (loss)(76,355)$ (14,126)$ (9,152)$ 177,874$ 78,241$ Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities Change in liability (asset) and deferred outflows and inflows of resources Other postemployment benefits - - - 565 565 Change in operating assets and liabilities Accounts payable 17,038 - - 196 17,234 Reconciliation of cash and cash equivalents to the statement of net position Cash and cash equivalents in Noncash capital and related financing activities None STATISTICAL SECTION 122 2018 2017 2016 2015 2014 Governmental Activities Net Investment in Capital Assets 43,812,963$ 37,227,904$ 39,752,753$ 36,184,133$ 28,014,455$ Restricted 27,951,509 28,379,167 22,305,281 38,369,139 45,613,499 Unrestricted 47,114,137 33,786,672 26,329,710 18,792,902 4,617,998 Total Governmental Activities Net Position 118,878,609$ 99,393,743$ 88,387,744$ 93,346,174$ 78,245,952$ Business-Type Activities Net Investment in Capital Assets 140,276,752$ 113,691,844$ 120,012,568$ 123,851,149$ 125,163,119$ Restricted 16,279,781 12,250,194 31,949,679 14,773,848 11,074,504 Unrestricted 58,666,104 73,264,160 33,991,810 35,395,885 27,688,003 Total Business-Type Activities Net Position 215,222,637$ 199,206,198$ 185,954,057$ 174,020,882$ 163,925,626$ Primary government Net Investments in Capital Assets 184,089,715$ 150,919,748$ 159,765,321$ 160,035,282$ 153,177,574$ Restricted 44,231,290 40,629,361 54,254,960 53,142,987 56,688,003 Unrestricted 105,780,241 107,050,832 60,321,520 54,188,787 32,306,001 Total Primary Government Net Position 334,101,246$ 298,599,941$ 274,341,801$ 267,367,056$ 242,171,578$ City of Oshkosh, Wisconsin Net Position Last Five Years (accrual basis of accounting) 2018 2017 2016 2015 2014 Program Revenues Governmental Activities: Charges for Services: General Government 1,579,036$ 1,600,030$ 1,438,721$ 1,558,511$ 1,510,767$ Public Safety 2,930,736 3,323,449 3,275,667 3,201,203 3,458,075 Public Works 4,194,483 4,351,816 4,318,592 3,865,108 4,266,651 Health and Human Services 158,010 128,185 197,444 171,211 152,046 Culture and recreation 1,331,976 991,340 1,328,326 1,457,930 1,524,330 Transportation 49,406 32,311 74,052 38,197 17,020 Conservation and Development 1,910,581 1,948,213 1,160,765 1,795,886 1,579,807 Operating grants and contributions 7,382,098 5,548,647 5,931,258 6,414,312 4,992,789 Capital grants and contributions 5,997,060 6,321,824 2,731,515 3,898,785 4,408,415 Total Governmental Activities Program Revenues 25,533,386 24,245,815 20,456,340 22,401,143 21,909,900 Business-Type Activities: Charges for Services: Transit utility 995,725 895,265 1,153,149 974,398 1,032,597 Water utility 15,465,120 15,122,194 14,445,314 13,880,943 13,380,404 Sewer utility 14,560,093 13,530,955 12,601,254 11,505,240 11,753,286 Storm Water utility 9,986,323 9,254,565 8,762,387 8,008,241 7,232,454 Other 3,357,933 3,847,579 3,771,400 2,460,714 753,376 Operating grants and contributions 3,110,752 3,189,855 3,001,264 2,988,658 2,980,554 Capital grants and contributions 5,085,796 3,935,617 4,208,145 2,282,249 3,621,003 Total Business-Type Activities Program Revenues 52,561,742 49,776,030 47,942,913 42,100,443 40,753,674 Total Primary Government Program Revenues 78,095,128 74,021,845 68,399,253 64,501,586 62,663,574 Expenses Governmental Activities: General Government 6,994,718 7,136,366 7,798,046 6,877,632 6,676,357 Public Safety 28,413,351 29,348,673 27,967,136 27,496,737 25,326,105 Public Works 13,759,356 15,167,905 15,386,290 16,804,792 15,963,233 Health and Human Services 934,016 1,042,797 930,952 942,326 971,146 Culture and recreation 9,363,655 8,914,798 8,785,030 8,886,775 8,835,806 Transportation 712,193 1,038,006 1,092,783 731,434 670,784 Conservation and Development 2,398,993 6,364,471 14,892,738 8,546,791 6,929,143 Unclassified 1,149,873 1,310,095 662,548 858,234 658,374 Interest and Fiscal Charges 3,521,757 3,479,436 3,849,290 3,958,629 4,565,377 Total Governmental Activities Expenses 67,247,912 73,802,547 81,364,813 75,103,350 70,596,325 Business-Type Activities: Transit utility 5,252,110 5,115,027 4,809,392 4,737,860 4,836,746 Water utility 10,863,872 10,466,239 10,892,066 10,564,852 10,616,162 Sewer utility 11,962,807 11,528,889 10,825,702 10,526,101 10,018,765 Storm Water utility 6,911,334 6,375,794 6,312,063 5,808,799 5,410,733 Other 3,075,088 3,454,550 3,350,343 2,331,609 2,152,755 Total Business-Type Activities Expenses 38,065,211 36,940,499 36,189,566 33,969,221 33,035,161 Total Primary Government Expenses 105,313,123 110,743,046 117,554,379 109,072,571 103,631,486 City of Oshkosh, Wisconsin Changes in Net Position Last Five Years (accrual basis of accounting) 123 2018 2017 2016 2015 2014 Net (Expense)/Revenue Governmental Activities (41,714,526)$ (49,556,732)$ (60,908,473)$ (52,702,207)$ (48,686,425)$ Business-Type Activities 14,496,531 12,835,531 11,753,347 8,131,222 7,718,513 Total Primary Government Net Expense (27,217,995)$ (36,721,201)$ (49,155,126)$ (44,570,985)$ (40,967,912)$ General Revenues and Other Changes in Net Position Governmental Activities: Taxes: Property and Other Local Taxes Levied For: General Purposes 26,088,061$ 25,568,490$ 16,540,825$ 7,674,823$ 7,601,256$ Other Purposes 7,053,820 6,652,124 13,439,350 14,856,920 14,629,667 Debt Service 10,985,500 10,323,676 9,851,809 18,037,275 17,637,047 State and Federal Aids Not Restricted to Specific Functions 14,004,464 13,868,473 13,286,136 12,165,208 12,239,874 Investment Earnings 966,466 1,898,404 1,351,658 185,641 2,530,813 Gain (Loss) on Sale of Capital Assets 16,841 150,275 18,075 25,683 4,629 Miscellaneous 355,433 1,136,780 476,935 317,288 3,986,577 Transfers 1,371,400 964,509 985,255 988,173 987,191 Total Governmental Activities 60,841,985 60,562,731 55,950,043 54,251,011 59,617,054 Business-Type Activities: General Purposes property taxes levied for 920,600 887,524 843,391 748,125 2,203,488 Investment Earnings 788,592 493,595 288,022 (13,041) 97,561 Gain (Loss) on Sale of Capital Assets 7,311 - 33,670 - - Miscellaneous 2,163,840 - - - - Transfers (1,371,400) (964,509) (985,255) (988,173) (987,191) Total Business-Type Activities 2,508,943 416,610 179,828 (253,089) 1,313,858 Total Primary Government 63,350,928 60,979,341 56,129,871 53,997,922 60,930,912 Change in Net Position Governmental Activities 19,127,459 11,005,999 (4,958,430) 1,548,804 10,930,629 Business-Type Activities 17,005,474 13,252,141 11,933,175 7,878,133 9,032,371 Total Primary Government Change in Net Position 36,132,933$ 24,258,140$ 6,974,745$ 9,426,937$ 19,963,000$ Last Five Years (accrual basis of accounting) City of Oshkosh, Wisconsin Changes in Net Position (continued) 124 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 FUND BALANCES RESERVED -$ -$ -$ -$ -$ -$ -$ -$ -$ 10,036,001$ UNRESERVED - - - - - - - - - 8,831,818 NONSPENDABLE Inventories and prepaid items 83,851 59,300 46,778 17,259 33,723 13,477 63,560 20,117 15,128 - Receivables from other funds - 1,704,665 8,022,157 13,302,738 480,191 6,082,872 9,023,957 7,822,388 - - RESTRICTED Construction of assets 14,305,655 15,448,351 4,891,747 7,255,154 28,384,271 19,114,218 15,864,698 12,466,838 6,161,672 - Debt service 1,092,465 923,371 2,251,808 2,361,472 3,437,177 6,628,347 3,843,324 3,827,124 802,645 - Special purposes 5,915,198 4,873,307 6,169,377 5,676,076 3,763,430 3,121,059 2,954,583 3,619,623 2,225,449 - Trust agreements 10,355,777 10,622,852 9,717,845 9,437,194 10,028,621 8,276,873 7,702,043 7,615,773 3,591,586 - COMMITTED Special purposes 5,000,463 1,171,091 1,786,878 1,948,928 870,296 327,044 199,313 453,083 1,440,897 - ASSIGNED Construction of assets 22,279,952 20,927,327 15,083,683 13,759,242 8,436,116 10,610,710 9,450,113 6,368,873 4,378,911 - Subsequent years 161,205 - 1,835 - 44,977 91,977 502,664 687,688 766,216 - UNASSIGNED General fund 11,817,119 10,230,445 8,427,707 8,540,127 8,718,502 8,262,154 8,820,427 8,520,110 8,090,093 - Special revenue funds 1,181,668 (3,636,920)(74,716) (4,637,412) (3,986,743) (2,058,210) (632,057) (51,337) (32,444) - Capital project funds (10,224,467)(10,060,081)(12,319,773)(4,706,405) (4,331,169) (5,018,748) (7,783,852) (6,976,868) (1,896,158) - Total Fund Balances 61,968,886$ 52,263,708$ 44,005,326$ 52,954,373$ 55,879,392$ 55,451,773$ 50,008,773$ 44,373,412$ 25,543,995$ 18,867,819$ The City implemented GASB Statement No. 54 during 2010 and has not restated their prior year balances. CITY OF OSHKOSH, WISCONSIN Fund Balances, Governmental Funds Last Ten Years December 31, 2018 125 2018 2017 2016 2015 2014 Revenues Taxes 43,928,857$ 42,339,970$ 39,678,624$ 40,394,058$ 39,703,948$ Special assessments 3,408,853 2,819,275 1,745,129 4,090,632 3,278,508 Intergovernmental 22,494,060 19,375,160 19,018,924 18,478,299 16,856,805 Licenses and permits 1,010,623 974,230 854,691 1,817,320 1,630,361 Fines and forfeits 763,489 799,480 697,837 732,845 718,839 Public charges for services 4,526,077 3,809,875 4,194,606 4,879,735 5,072,026 Intergovernmental charges for services 3,883,174 4,463,334 4,432,013 3,427,847 3,371,926 Miscellaneous 5,052,408 8,555,585 3,895,923 2,449,829 8,776,973 Total Revenues 85,067,541 83,136,909 74,517,747 76,270,565 79,409,386 Expenditures Current General government 6,653,597 6,384,666 6,360,784 6,104,307 6,004,044 Public safety 26,608,996 26,171,424 25,930,335 25,556,548 24,604,669 Public works 10,331,819 9,186,637 8,893,465 9,068,401 9,653,984 Transportation 719,561 5,385,542 897,614 462,691 502,391 Health and Human Services 938,160 5,212,069 7,287,928 7,937,333 7,943,881 Culture and recreation 7,670,084 1,631,738 677,920 692,914 678,097 Conservation and development 5,525,721 1,317,316 7,187,823 8,011,745 6,316,899 Unclassified 1,079,471 1,251,952 636,998 836,971 613,892 Debt service Principal 12,017,594 11,497,406 33,126,100 10,952,762 17,867,974 Interest and fiscal charges 3,724,439 3,675,373 4,236,487 3,739,870 3,601,824 Capital outlay 13,239,606 15,898,274 19,953,642 19,360,391 19,245,514 Total Expenditures 88,509,048 87,612,397 115,189,096 92,723,933 97,033,169 Excess of Revenues Over (Under) Expenditures (3,441,507) (4,475,488) (40,671,349) (16,453,368) (17,623,783) Other Financing Sources (Uses) Long-term debt issued 11,440,000 10,965,000 29,715,239 19,390,000 25,208,622 Premium on debt issued 328,285 680,834 1,021,808 483,527 733,994 Payment to refunding escrow agent - 123,527 - (7,333,351) (8,878,405) Proceeds from Sale of Capital Assets 7,000 - - - - Transfers in 6,974,789 12,527,625 12,858,979 16,994,014 17,915,661 Transfers out (5,603,389) (11,563,116) (11,873,724) (16,005,841) (16,928,470) Total Other Financing Sources (Uses)13,146,685 12,733,870 31,722,302 13,528,349 18,051,402 Net Change in Fund Balance 9,705,178 8,258,382 (8,949,047) (2,925,019) 427,619 Fund Balances - January 1, as Restated 52,263,708 44,005,326 52,954,373 55,879,392 55,451,773 Fund Balances - December 31 61,968,886$ 52,263,708$ 44,005,326$ 52,954,373$ 55,879,392$ City of Oshkosh, Wisconsin Changes in Fund Balances, Governmental Funds Last Five Fiscal Years 126 Fiscal Assessed Assessed Estimated Actual Total Assessed Total Direct Estimated Actual Ratio of Total Assessed to 2018 3,758,059,400$3,949,636,890$105,526,300$110,905,796$ 3,863,585,700$10.5820 4,060,542,686$94.90 2017 3,723,271,100 3,793,325,937 134,564,600 137,079,919 3,858,285,700 10.5580 3,930,405,857 98.13 2016 3,641,697,700 3,650,387,038 130,942,200 131,254,637 3,772,639,900 10.3440 3,781,641,675 99.76 2015 3,606,419,800 3,606,061,488 142,327,700 142,313,559 3,748,747,500 9.7870 3,748,375,047 100.00 2014 3,618,101,100 3,592,566,171 157,144,000 156,034,948 3,775,245,100 9.5620 3,748,601,119 100.71 2013 3,602,577,600 3,602,577,600 158,294,700 158,294,700 3,760,872,300 9.2810 3,760,872,300 100.00 2012 3,591,967,000 3,621,421,129 146,992,600 148,197,939 3,738,959,600 8.9370 3,769,619,068 99.18 2011 3,581,676,200 3,623,939,979 147,234,400 148,971,766 3,728,910,600 8.7960 3,772,911,745 98.82 2010 3,558,554,500 3,625,811,180 149,579,500 152,406,553 3,708,134,000 8.6080 3,778,217,733 98.11 2009 3,559,320,400 3,647,235,614 152,720,300 156,492,491 3,712,040,700 8.3990 3,803,728,105 97.53 CITY OF OSHKOSH, WISCONSIN Assessed and Estimated Actual Value of Taxable Property Last Ten Fiscal Years December 31, 2018 Real Property Personal Property 127 Fiscal Year Operations Debt Total Total 2018 7.462$ 3.120$ 10.582$ 40.0%9.424$ 35.6%1.114$ 4.2%5.352$ 20.2%-$ 0.0%26.472$ 2017 7.444 3.114 10.558 39.4%9.774 36.5%1.105 4.1%5.369 20.0%- 0.0%26.806 2016 7.360 2.984 10.344 38.1%10.131 37.3%1.116 4.1%5.415 19.9%0.170 0.6%27.176 2015 6.949 2.838 9.787 37.5%9.579 36.7%1.116 4.3%5.429 20.8%0.169 0.6%26.080 2014 4.361 5.201 9.562 36.6%9.737 37.3%1.116 4.3%5.548 21.2%0.169 0.6%26.132 2013 4.151 5.130 9.281 35.5%9.154 35.0%1.973 7.5%5.567 21.3%0.170 0.7%26.145 2012 3.980 4.957 8.937 34.5%8.892 34.4%1.982 7.7%5.890 22.8%0.171 0.7%25.872 2011 3.902 4.894 8.796 35.0%8.640 34.3%1.813 7.2%5.736 22.8%0.172 0.7%25.157 2010 3.824 4.784 8.608 34.2%8.792 34.9%1.814 7.2%5.804 23.0%0.173 0.7%25.191 2009 3.501 4.898 8.399 34.8%8.099 33.6%1.757 7.3%5.688 23.6%0.174 0.7%24.117 Operations Debt Total Total 2018 27,784,400$ 11,617,200$ 39,401,600$ 98,564,296$ 2017 26,695,100 11,166,600 37,861,700 96,128,841 2016 25,826,000 10,471,700 36,297,700 95,407,876 2015 24,343,600 9,943,100 34,286,700 91,406,804 2014 15,204,000 18,130,300 33,334,300 91,144,879 2013 14,326,700 17,704,300 32,031,000 90,287,704 2012 13,629,708 16,975,200 30,604,908 88,650,296 2011 13,360,100 16,758,200 30,118,300 86,195,509 2010 13,100,765 16,387,400 29,488,165 86,341,268 2009 11,997,700 16,789,100 28,786,800 82,708,602 19,215,346 637,971 638,536 640,825 641,392 645,192 29,585,411 30,116,037 6,808,053 6,786,290 27,758,578 30,451,103 Schools College -$ 20,169,459 19,642,097 19,882,754 19,496,778 6,208,876 6,212,920 6,021,254 636,199 635,319 35,551,348 3,915,834 19,002,146 640,848 State of W isconsin 31,595,334 Winnebago 33,555,438 3,910,234 19,019,113 35,051,183 3,962,683 19,253,275 - 35,089,846$ 4,146,909$ 19,925,941$ 33,943,225 3,890,900 19,340,255 CITY OF OSHKOSH, WISCONSIN Property Tax Rates - Direct and Overlapping Governments Last Ten Fiscal Years December 31, 2018 City of Oshkosh City of Oshkosh Tax Levies Schools College Winnebago State of W isconsin 128 Real Property Percentage of Total Taxpayer Assessed Valuation (1)Assessed Valuation Dumke & Associates 64,191,900$ 1.71% Midwest Realty 60,364,500 1.61 Tom Rusch Etal 48,531,700 1.29 Charles Perry 33,443,500 0.89 Curwood Bemis 32,712,600 0.87 BFO Factory Shoppes 32,575,600 0.87 Bergstrom 32,176,400 0.86 Aurora Medical 29,834,900 0.80 Oshkosh Corp 29,474,600 0.79 Peter Frederiksen & Assoc 29,341,300 0.78 Real Property Percentage of Total Taxpayer Assessed Valuation (1)Assessed Valuation Midwest Realty 72,140,400$ 2.10% Thomas N. Rusch, etal.49,595,550 1.44 Dumke & Associates 43,377,600 1.26 Curwood 30,430,200 0.88 BFO Factory Shoppes 29,403,900 0.85 Peter Jungbacker etal 28,781,800 0.84 Oshkosh Truck 28,263,900 0.82 Bergstrom 22,663,200 0.66 Westowne Shoppes 22,689,600 0.66 Dennis Schwab etal 20,459,800 0.59 (1) Assessed valuation based on the valuation of property for taxes collected in 2018 and 2008 respectively, and a review of the largest taxpayers for the City. Source: City of Oshkosh Assessor's Office City of Oshkosh, Wisconsin Principal Taxpayers 12/31/2008 and 12/31/2018 December 31, 2018 December 31, 2008 129 County Percent of Total Percent of Settlement Tax Collections Total City City Tax for Delinquent Total Prior to Fiscal Tax Tax Tax Collections Tax Tax Collections / Year Year (1)Collections To Tax Levy Collections Collections Adjustments 2018 2017 108,736,133$ 106,675,604$ 98.11%2,009,132$ 108,684,736$ 99.95% 2017 2016 107,415,653 105,608,948 98.32%1,772,098 107,381,046 99.97% 2016 2015 102,914,568 100,963,917 98.10%1,872,639 102,836,556 99.92% 2015 2014 103,057,581 101,075,776 98.08%1,916,907 102,992,683 99.94% 2014 2013 103,008,897 100,896,914 97.95%2,074,659 102,971,573 99.96% 2013 2012 101,153,633 98,273,836 97.15%2,836,923 101,110,759 99.96% 2012 2011 96,961,355 93,389,879 96.32%3,504,895 96,894,774 99.93% 2011 2010 97,053,509 92,726,230 95.54%4,277,936 97,004,166 99.95% 2010 2009 93,178,460 90,156,910 96.76%2,973,400 93,130,310 99.95% 2009 2008 89,123,760 86,319,259 96.85%2,756,957 89,076,216 99.95% Sources: W innebago County Treasurer and City of Oshkosh Department of Finance. (1) - Total Tax Levy represents the real estate tax levies for the City, overlapping districts, and personal property taxes. Note: Real estate taxes may be paid in a single payment due January 31, or in four installments, January 31, March 31, May 31, and July 31. The City collects taxes on behalf of the overlapping governments. The City remits taxes to the other governments on five settlement dates - January 15, February 15, April 15, June 15, and August 15. The City then transfers the delinquent taxes to the County by August 15 and the County in turn makes the City whole with a settlement on August 20. The City retains the responsibility of collecting delinquent personal property taxes. City of Oshkosh, Wisconsin Property Tax Levies And Collections Last Ten Fiscal Years 130 131 General Compensated OPEB Unfunded Pension General Compensated Total Primary Percentage of Personal 2018 112,180,097$ 4,434,862$ 5,985,082$ -$ 20,608,509$ 178,267,779$ 833,790$ 2017 115,311,124 4,305,769 5,605,749 - 24,042,224 182,802,130 761,542 2016 115,349,675 4,352,539 5,375,052 - 25,586,223 167,032,169 808,318 2013 107,861,558 3,370,758 4,519,616 10,513,576 33,533,369 116,597,811 713,031 2012 100,855,655 3,142,412 3,724,502 10,255,576 37,003,597 100,403,094 626,990 2011 93,389,085 3,066,770 3,045,113 10,049,166 40,242,776 88,033,677 593,879 2009 54,594,494 2,888,438 1,492,192 9,520,865 75,062,759 51,273,148 744,469 was reclassified from business-type activity to governmental activity debt. The amount reclassified was $27,527,728. CITY OF OSHKOSH, WISCONSIN result, general obligation debt increased $10,233,802 which was split between governmental and business-type activities. Fiscal Year Population Equalized Value Debt Total Ratio to Assessed Value Per Capita 2018 66,945 4,073,682,600$ 132,788,606$ 3.26%1,983.55$ 2017 66,636 3,858,285,700 136,799,914 3.55%2,052.94 2016 66,717 3,772,639,900 138,876,319 3.68%2,081.57 2015 66,327 3,743,645,000 145,410,531 3.88%2,192.33 2014 66,778 3,748,827,600 147,228,958 3.93%2,204.75 2013 66,653 3,759,269,500 141,394,927 3.76%2,121.36 2012 66,325 3,762,601,100 137,859,256 3.66%2,078.54 2011 66,083 3,776,085,900 133,631,865 3.54%2,022.18 2010 66,080 3,779,437,800 131,952,877 3.49%1,996.87 2009 64,350 3,801,817,900 129,657,250 3.41%2,014.88 Long-Term Debt CITY OF OSHKOSH, WISCONSIN Ratios of Net General Bonded Debt Outstanding Last Ten Fiscal Years December 31, 2018 Net General 132 Percent Amount Direct Debt: City purpose 132,788,606$ Less Sanitary Sewer purpose (6,653,459) Less Storm W ater purpose (5,469,857) Less Water Utility purpose (4,669,194) Less TIF purpose (20,442,757) Net City Purpose 95,553,340$ 100.0000%95,553,340$ Total Net Direct Debt 95,553,340 Overlapping Debt Oshkosh Area Public School District 56,119,909 72.7000%40,799,174 Fox Valley Technical College 80,765,000 10.3100%8,326,872 Winnebago County 34,040,230 16.9900%5,783,435 Total Overlapping Debt 54,909,481 150,462,821$ Information of other taxing districts was obtained from their respective financial reports and/or departments. CITY OF OSHKOSH, WISCONSIN Direct and Overlapping Governmental Activities Debt December 31, 2018 TOTAL DEBT Applicable to City Debt shown includes general obligation bonds and notes. Excluded from above are revenue bonds of $178,267,779. 133 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Equalized Value 4,073,682,600$ 3,931,778,200$ 3,776,225,300$ 3,743,645,000$ 3,748,827,600$ 3,759,269,500$ 3,762,601,100$ 3,776,085,900$ 3,779,437,800$ 3,801,817,900$ Debt limitation - 5% of equalized value 203,684,130 196,588,910 188,811,265 187,182,250 187,441,380 187,963,475 188,130,055 188,804,295 188,971,890 190,090,895 Debt applicable to limitation Less: Debt service fund (1,092,465) (923,371) (760,004) (976,051) (1,536,834) (1,766,431) (1,598,474) (878,039) (802,645) (1,146,983) - - - - - (1,631,854) - - - - Total debt applicable to limitation 131,696,141 135,876,543 138,116,315 144,434,480 145,692,124 137,996,642 136,260,778 132,753,822 131,150,232 128,510,270 Legal Debt Margin 71,987,989$ 60,712,367$ 50,694,950$ 42,747,770$ 41,749,256$ 49,966,833$ 51,869,277$ 56,050,473$ 57,821,658$ 61,580,625$ Total net debt applicable to the limit as a percentage of debt limit 64.66%69.12%73.15%77.16%77.73%73.42%72.43%70.31%69.40%67.60% CITY OF OSHKOSH, WISCONSIN Legal Debt Margin Information Last Ten Fiscal Years December 31, 2018 134 Fiscal Utility Service (1) Less: Operating Expenses (2) Net Revenue Available for Principal Interest Revenue 2018 15,686,166$ 5,669,951$ 10,016,215$ 8,408,204$ 2,368,490$ 0.929 2017 15,067,303 5,255,171 9,812,132 5,003,204 1,539,625 1.500 2016 14,389,159 5,540,506 8,848,653 4,704,579 1,686,652 1.384 2015 13,744,880 5,559,101 8,185,779 3,807,638 1,441,970 1.559 2014 13,204,960 5,833,904 7,371,056 3,872,222 1,414,596 1.394 2013 11,894,051 5,181,499 6,712,552 3,168,287 1,373,264 1.478 2012 12,476,050 5,190,896 7,285,154 2,940,800 1,292,001 1.721 2011 11,766,312 4,950,108 6,816,204 1,859,362 901,696 2.469 2010 11,440,790 6,365,712 5,075,078 2,864,882 1,136,715 1.268 2009 11,661,637 5,585,656 6,075,981 2,199,618 1,047,917 1.871 (1) (2) Includes total operating revenues and investment income. Includes total operating expenses less: depreciation, bond issue expense and interest expense. Debt Service CITY OF OSHKOSH, WISCONSIN December 31, 2018 Last Ten Fiscal Years Pledged-Revenue Coverage Water Revenue Bonds 135 Fiscal Utility Service (1) Less: Operating Expenses (2) Net Revenue Available for Principal Interest Revenue 2018 14,886,186$ 6,022,572$ 8,863,614$ 3,326,149$ 2,046,348$ 1.650 2017 13,701,370 5,860,337 7,841,033 2,793,423 1,476,428 1.836 2016 12,692,924 5,815,792 6,877,132 2,278,072 1,244,346 1.952 2015 11,432,847 5,814,421 5,618,426 1,797,902 962,202 2.036 2014 11,667,626 5,742,234 5,925,392 2,811,576 774,747 1.652 2013 10,115,243 5,170,187 4,945,056 2,556,996 707,686 1.515 2012 10,633,650 5,227,829 5,405,821 2,433,416 595,965 1.784 2011 9,742,345 5,241,990 4,500,355 1,889,013 441,518 1.931 2010 9,062,774 5,190,326 3,872,448 1,671,295 327,294 1.938 2009 9,094,064 5,218,908 3,875,156 1,620,209 360,497 1.956 (1) (2) Includes total operating revenues and investment income. Includes total operating expenses less: depreciation, bond issue expense and interest expense. Debt Service CITY OF OSHKOSH, WISCONSIN December 31, 2018 Last Ten Fiscal Years Pledged-Revenue Coverage Sewer Revenue Bonds 136 Fiscal Utility Service (1) Less: Operating Expenses (2) Net Revenue Available for Principal Interest Revenue 2018 10,227,776$ 2,107,879$ 8,119,897$ 3,140,000$ 2,285,832$ 1.497 2017 9,366,215 2,051,219 7,314,996 2,770,000 1,953,735 1.549 2016 8,834,283 2,117,352 6,716,931 2,530,000 2,202,164 1.419 2015 7,992,624 1,941,371 6,051,253 2,120,000 1,854,819 1.522 2014 7,263,498 2,049,110 5,214,388 1,670,000 1,790,866 1.507 2013 6,088,592 1,619,298 4,469,294 1,260,000 1,110,605 1.885 2012 4,650,424 1,821,770 2,828,654 985,000 934,695 1.473 2011 4,218,749 2,096,833 2,121,916 895,000 1,005,365 1.117 2010 3,805,709 1,743,456 2,062,253 190,000 170,061 5.728 2009 4,044,613 1,596,444 2,448,169 185,000 176,624 6.770 (1) (2) Includes total operating revenues and investment income. Includes total operating expenses less: depreciation, bond issue expense and interest expense. Debt Service CITY OF OSHKOSH, WISCONSIN December 31, 2018 Last Ten Fiscal Years Pledged-Revenue Coverage Storm Water Revenue Bonds 137 Total Personal Per Capita Median School Unemployment Year (1) Income (2) Income (3)Age (3)Enrollment (4)Rate (5) 2018 66,945 $2,068,399,665 $30,897 33.6 11,158 2.7% 2017 66,636 2,073,912,228 31,123 33.6 11,131 3.1% 2016 66,717 2,076,433,191 31,123 N/A 11,128 3.2% 2015 66,327 1,917,115,608 28,904 32.8 11,141 3.8% 2014 66,778 1,865,643,764 27,938 33.9 11,226 4.8% 2013 66,653 1,819,960,165 27,305 32.8 11,465 5.9% 2012 66,325 1,856,768,375 27,995 33.5 11,323 6.9% 2011 66,083 1,874,378,212 28,364 34.1 11,399 7.4% 2010 66,080 1,848,323,680 27,971 35.2 10,213 7.0% 2009 64,350 1,834,682,850 28,511 33.8 10,331 8.4% Source: (1) U.S. Census Bureau - WI Dept of Administration (2) Computation of per capita personal income multiplied by population (3) Oshkosh Chamber of Commerce Esri Forecasts 2012 and U.S. Census Bureau (4) WI Department of Public Instruction http://dpi.wi.gov/lbstat/pubdata2.html (5) Wisconsin Department of Workforce Development Website: worknet.wisconsin.gov City of Oshkosh, Wisconsin Demographic and Economic Statistics Last Ten Years December 31, 2018 138 2008 Percentage of Oshkosh Total City Financial Employees Employment Report Manufacturing Oshkosh Corporation 3,100 9.03%2,712 Bemis (all Oshkosh locations)2,300 6.70%1,880 Silver Star Brands Inc. / Miles Kimball Co.650 1.89%1,500 Hoffmaster, A Solo Cup Company,440 1.28%617 (Scott W orldwide Food Service) Muza Metal Products 250 0.73%150 Lapham-Hickey Steel 256 0.75%200 Non-Manufacturing Aurora Medical Center & Aurora Group 1,036 3.02%1,079 U S Bank (Firstar)1,144 3.33%750 4imprint (Nelson Marketing)819 2.39%338 Ascension Health 539 1.57%803 Oshkosh Community YMCA 200 0.58%350 Miravida Living 275 0.80%342 Wal-Mart 318 0.93%431 Clarity Care (Residential Care RCDD)420 1.22%500 United Parcel Service 200 0.58%- Government University of W I - Oshkosh 1,288 3.75%1,632 Oshkosh Area School District 1,290 3.76%1,580 Winnebago County 1,046 3.05%1,047 Winnebago Mental Health Institute 625 1.82%750 City of Oshkosh-, Full-Time 569 1.66%650 Oshkosh Correctional Institution 502 1.46%524 CESA6 200 0.58%289 Oshkosh's Labor Force Estimates **34,325 **Source: W ORKnet - Data Analyst - Labor Force - Period 12, 2017 Source: Oshkosh Chamber of Commerce and/or employers* *Employee counts listed are the number of full-time equivalent employees reported by each organization for the Oshkosh area. Principal Employers* Current Year and Ten Years Ago 2018 December 31, 2018 139 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 General Fund General Government Manager 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Attorney 4.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Human Resources 6.00 5.00 5.00 6.00 6.00 6.00 6.00 5.00 5.00 5.00 Clerk 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Finance 15.28 14.80 14.80 12.80 12.00 12.00 12.00 12.00 14.00 14.00 Purchasing 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Central Services -- - - - - - 1.00 1.00 1.00 I T / Central Services 7.40 7.40 7.40 7.40 7.40 7.40 7.40 7.00 7.00 7.00 Facilities Maint.5.80 5.80 5.80 5.80 5.00 5.00 5.00 5.00 4.00 4.00 Media Services 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Public Safety Safety -- - 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Police 128.49 127.49 127.49 115.00 115.00 114.00 116.00 116.00 116.00 116.00 Fire 108.00 108.00 108.00 108.00 107.00 107.00 108.00 108.00 108.00 108.00 Public Works Public Works Admin.3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 Engineers 11.70 11.70 11.70 11.70 11.00 12.00 12.00 12.00 11.00 11.00 Streets 29.00 29.00 29.00 29.00 29.00 29.00 29.00 31.00 31.00 31.00 Central Garage 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 8.00 Garbage -- - - 8.00 8.00 9.25 10.00 11.00 11.00 Parks Parks 15.91 14.89 14.89 14.89 14.89 15.64 15.64 15.64 15.50 15.50 Forestry 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Community Development Assessor 5.80 5.80 5.80 5.80 5.00 5.00 6.00 6.00 6.00 6.00 Economic Development 5.00 5.00 5.00 4.80 4.80 3.00 - - - - Planning 9.00 9.00 9.00 8.50 8.50 7.50 9.90 9.90 9.50 9.50 Inspection Services 7.62 7.50 7.50 7.50 7.50 7.50 10.50 10.50 10.50 10.50 Weights and Measures 1.50 1.50 1.50 - - - - - - - Healthy Neighborhood Initiative 0.88 0.88 0.88 - - - - - - - Transportation Electric 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Sign 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Administrative Services Safety & Worker Compensation 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Special Revenue Funds Parks Cemetery 3.64 3.64 3.64 3.00 3.00 3.00 3.00 3.70 4.00 4.00 Senior Services 7.18 7.18 7.18 5.00 5.00 5.00 5.00 5.00 5.00 5.00 Parks Revenue Facilities 0.49 0.36 0.36 0.36 0.36 0.36 0.36 0.36 0.50 0.50 Public Works Garbage 7.50 7.50 7.50 8.00 - - - - - - Recycling 4.50 4.50 4.50 5.00 5.00 5.00 5.00 5.00 5.00 6.00 Other Health Services -- - - - - - 6.00 6.00 6.00 Health Srvcs/Nurses -- - - - - - 3.00 3.00 3.00 Library 38.65 37.68 37.68 38.58 40.25 40.25 40.25 32.05 32.50 31.60 Museum 11.00 11.43 11.43 10.00 10.00 10.00 10.00 10.00 10.00 10.00 Enterprise Funds Convention Center 1.00 1.00 1.00 - - - - - - - Golf Course - 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00 Transit Utility 32.00 32.00 32.00 29.00 28.00 28.00 28.00 28.00 28.00 28.00 Parking Utility 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 1.00 Water Utility 35.02 35.02 35.02 34.93 34.93 35.05 35.05 32.85 32.85 31.33 Sewer Utility 33.02 33.02 - 32.68 32.68 33.70 33.70 32.67 32.67 32.33 Storm Utility 10.86 10.85 10.85 10.50 10.50 10.50 10.50 8.00 8.00 7.33 Source: City of Oshkosh Finance Department - Annual Budget CITY OF OSHKOSH, WISCONSIN Full-time Equivalent City Government Employees by Function/Program Last Ten Fiscal Years December 31, 2018 140 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Police Stations 1 1 1 1 1 1 1 1 1 1 Community Policing Offices 1 mobile 1 mobile 1 mobile I mobile I mobile 0 0 0 0 0 Patrol Units 30 29 29 28 28 28 28 28 29 30 Fire Stations 6 6 6 6 6 6 6 6 6 6 Refuse Collection Collection trucks 13 13 13 13 13 13 13 13 13 13 Other Public Works Streets (miles)265.33 260.87 260.05 259.35 258.45 263.05 261.72 261.08 262.22 261.38 Street Lights 1,425 1,405 1,390 1,350 1,350 1,310 **** City traffic signals (intersections)68 68 68 67 62 ***** Parks and Recreation Acreage 415 448 445 440 440 440 440 440 440 440 Playgrounds 19 19 19 19 17 17 17 17 17 17 Baseball/softball diamonds 19 19 19 19 18 18 18 18 18 18 Water Watermains (miles)299.04 297.41 313.00 296.09 295.66 294.09 294.73 294.49 294.02 292.61 Average Daily Pumpage,5.980 5.95 5.790 6.170 6.849 6.160 6.422 6.508 6.388 6.315 (Million Gallons per day) Wastewater Sanitary sewers (miles)266.03 266.08 266.50 266.21 266.35 267.04 268.50 269.71 269.71 269.84 Storm sewers (miles)260.35 255.02 256.70 251.97 246.69 ***** Transit Buses 16 16 16 16 17 17 17 17 17 17 Sources: various city departments * Data Not Available CITY OF OSHKOSH, WISCONSIN Capital Asset Statistics by Function/Program Last Ten Fiscal Years December 31, 2018 141 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 Police Physical arrests 3,675 1,652 2,646 3,854 4,606 5,162 5,727 7,603 6,217 6,307 Traffic Enforcement Citations 7,077 8,207 7,175 4,720 7,799 7,846 8,919 7,415 6,750 5,203 Reportable Accidents 1,370 1,453 1,464 1,434 1,243 1,403 1,453 1,381 1,360 1,191 Fire Emergency responses 8,678 7,283 8,591 8,018 8,087 7,625 7,502 7,343 6,741 5,862 Fire responses 124 132 113 130 107 114 121 113 116 104 Other 1,167 1,475 1,117 844 901 879 783 766 840 1,119 Refuse Collection Refuse collected (average tons per day)52.83 52.94 51.85 50.42 49.86 49.30 49.23 49.61 49.11 51.50 Refuse collected total tons per year 13,735.54 13,765.69 13,481.38 13,158.55 13,062.67 12,866.88 12,947.22 13,095.82 13,209.26 13,422.69 Comingled recyclable containers (tons)-4,421 4,353 4,262 4,317 4,526 4,434 4,371 Mixed paper (tons)2,004.17 Mixed paper and comingled recyclables (tons)4,257.00 4,327.65 3,635.36 Other Public Works New street pavement (miles)0.33 - 1.01 0.00 0.00 0.16 0.00 0.00 0.05 0.25 Street resurfacing (miles)2.73 3.50 2.89 2.25 1.38 2.89 4.89 6.91 14.87 5.18 Inspection Commercial construction - units 8 325 71 248 136 30 6 100 34 56 Commercial construction (thousands of dollars)350,000 23,293,785 14,655,000 15,897,849 11,315,000 4,383,000 283,183 9,496,000 7,117,000 2,878,000 Residential construction - units 30 39 25 27 21 21 22 14 24 18 Residential construction (thousands of dollars)7,634,719 7,845,550 4,060,521 4,498,868 3,411,675 3,998,218 3,323,089 1,339,096 2,706,490 2,295,400 Water New construction (miles)4.02 4.91 3.43 2.62 2.78 2.54 4.01 4.24 5.26 * Water main leaks 110 87 68 77 124 73 77 76 71 * Average number of residential customers 20,823 20,585 20,569 21,441 21,268 22,110 20,815 20,498 20,465 20,436 Average annual usage per residential customer,34,810 35,047 35,774 34,982 35,651 37,198 40,123 39,785 39,935 * (gallons) Transit Total route miles 544,929 538,967 483,085 483,492 481,997 486,540 473,615 468,124 462,430 465,125 Passengers (includes paratransit)943,195 980,057 995,697 990,431 1,000,778 1,007,785 1,089,681 1,029,812 990,329 1,061,149 Sources: various city departments Notes: Police Statistics Reportable - Anything that gets reported to the State 1) Damage to property is over $1,000 2) Report of an injury or a complaint about an injury 3) Gov't property damage over $250.00 (ex - a light pole) *Data Not Available CITY OF OSHKOSH, WISCONSIN Operating Indicators by Function/Program Last Ten Fiscal Years December 31, 2018 142 2008 Estimate 2009 Estimate 2010 Estimate 2011 Estimate 2012 Estimate 2013 Estimate 2014 Estimate 2015 Estimate 66,327 2016 Estimate 66,717 2017 Estimate 66,636 2018 Estimate 66,945 Year No.No. 2009 20 6,130 2010 30 5,104 2011 50 1,834 2012 42 2,646 2013 33 2,439 2014 26 2,136 2015 38 20,396,717 1,974 67,144,205 2016 34 15,991,435 2,265 78,369,742 2017 46 19,201,000 2,544 106,623,646 2018 39 54,058,010 2,404 92,575,783 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 (3)23,451 23,512 23,547 23,823 24,225 24,352 24,352 23,538 23,573 23,832 Electric (4)43,038 43,382 43,729 43,861 44,343 44,369 42,612 38,893 39,862 39,902 Gas (4)32,505 32,667 32,867 32,987 33,019 33,028 32,226 30,077 30,229 30,312 (1) Source: U.S. Census Bureau / W I Dept. of Admin. (2) Source: City of Oshkosh Inspections Department (3) Source: W I Public Service Commission http://www.psc.wi.gov (4) Source: W isconsin Public Service Corporation CITY OF OSHKOSH, WISCONSIN December 31, 2018 66,325 66,083 66,080 64,350 65,920 POPULATION - CITY OF OSHKOSH (1) ECONOMICS UTILITY CUSTOMERS AT YEAR END - CITY OF OSHKOSH New Residential: Single, Family, and Apartments Total of All Permits 9,823,490 21,705,692 15,563,675 66,248,867 82,002,706 Value 77,672,133 26,119,317 25,447,066 64,463,673$ 74,950,553 66,653 Value 51,095,915 66,778 5,173,400$ BUILDING PERMITS (2) 143 YEAR TOTAL UNITS SINGLE FAMILY TW O FAMILY MULTIPLE FAMILY 1998 382 144 20 218 1999 423 157 20 246 2000 277 109 22 146 2001 450 121 10 319 2002 364 157 44 163 2003 529 153 36 340 2004 334 113 20 201 2005 138 63 32 43 2006 234 51 12 171 2007 238 58 2 178 2008 93 41 4 48 2009 46 14 4 28 2010 122 22 2 98 2011 141 12 2 127 2012 28 18 4 6 2013 53 23 - 30 2014 157 15 6 136 2015 275 17 10 248 2016 128 15 10 103 2017 364 31 8 325 2018 38 30 - 8 4,776 1,334 268 3,174 City of Oshkosh, Wisconsin NEW DW ELLING UNITS CONSTRUCTED 1998-2018 144 Rates: Quarterly Volume Charge First 3,000 cubic feet (CU FT)$5.12 per 100 CU. FT. Next 7,000 cubic feet 4.90 per 100 CU. FT. Next 190,000 cubic feet 4.55 per 100 CU. FT. Over 200,000 cubic feet 4.26 per 100 CU. FT. 100 CU. FT. = 748 Gallons Minimum Quarterly Charge Meter Size 5/8" & 3/4"25.80$ 10.14$ 1"40.20 25.50 1-1/4"54.00 39.00 1-1/2"69.00 51.00 2"105.00 81.00 3"162.00 153.00 4"237.00 252.00 6"411.00 507.00 8"621.00 810.00 10"882.00 1,215.00 12"1,143.00 1,623.00 Billings Usage (00's) Oshkosh Correctional Institute Bemis/Curwood/Milprint UW Oshkosh 59,515 Pepsi Bottling Winnebago Mental Health Hydrite Chemical Oshkosh Corp State of WI - Drug Abuse Correctional Center Midwest Realty Management Winnebago County CITY OF OSHKOSH, WISCONSIN UTILITY INFORMATION December 31, 2018 WATER UTILITY Top Ten Users / Customers 145 Rates: Quarterly Volume Charge Charge per 100 cubic Feet $4.88 100 CU. FT. = 748 Gallons Unmetered Customers: Fixed Quarterly Charge (based on 16 CCF/quarter)$104.26 Special Charges: Meter Reading & Billing Charge for non-sewer deduct meters, per billing period.$5.00 Fixed Quarterly Charge Meter Size Charge Meter Size Charge 5/8" & 3/4"$26.18 4"$309.05 1"43.86 6"603.70 1-1/4"58.59 8"957.29 1-1/2"73.32 10"1,487.67 2"108.68 12"2,076.98 3"191.19 Billings Usage (00's) Oshkosh Correctional Institute UW Oshkosh Bemis/Curwood/Milprint City of Oshkosh WMHI Oshkosh Corporation Drug Abuse Correctional Center Winnebago County Midwest Realty Management Oshkosh Area School District SEWER UTILITY Top Ten Users / Customers CITY OF OSHKOSH, WISCONSIN December 31, 2018 146 Rates: Quarterly Equivalent Runoff Unit (ERU) Charge per ERU $43.01 Small Residential (Impervious area < 1,750 square feet)0.67 ERU Average Residential (Impervious area > 1,750 1.00 ERU but < 3,750 square Feet) Large Residential (Impervious area > 3,750 square feet)1.33 ERU No charge for undeveloped properties Billings ERU'S Winnebago County Oshkosh Corporation City of Oshkosh State of Wisconsin Oshkosh Area School District UW Oshkosh Bemis / Curwood / Milprint Experimental Aircraft Association Bergstrom BFO Factory Outlets Top Ten Users / Customers CITY OF OSHKOSH, WISCONSIN UTILITY INFORMATION (Continued) December 31, 2018 STORM WATER UTILITY 147 148 2016 2017 2018 2018 2019 ACTUAL ACTUAL BUDGETED ESTIMATED ADOPTED REVENUES REVENUES REVENUES REVENUES BUDGET TAXES LEVIED BY CITY TOTAL TAXES LEVIED 17,441,602 18,841,272 19,710,800 19,683,900 20,529,400 LICENSES & PERMITS TOTAL LICENSES & PERMITS 419,372 444,916 376,900 391,200 391,500 FINES & COSTS TOTAL FINES & COSTS 783,652 861,958 803,800 736,900 781,700 STATE & COUNTY AIDS TOTAL STATE & CO. AIDS 15,752,591 16,010,266 16,298,100 16,389,300 16,358,000 USE OF MONEY & PROPERTY TOTAL USE OF MONEY & PROP.576,275 577,823 544,800 695,400 750,000 REVENUES 149 2016 2017 2018 2018 2019 ACTUAL ACTUAL BUDGETED ESTIMATED ADOPTED REVENUES REVENUES REVENUES REVENUES BUDGET REVENUES CHARGES FOR CURRENT SERVICES TOTAL CHGS. FOR CUR. SERV.4,043,104 4,077,829 3,999,000 3,896,700 4,113,500 INTERDEPARTMENTAL REVENUES TOTAL INTER. DEP. REV.3,772,485 3,791,007 3,382,700 3,554,400 3,517,600 UNCLASSIFIED TOTAL UNCLASSIFIED 128,113 162,035 106,500 164,700 209,000 TOTAL GENERAL FUND REVENUES 42,917,195 44,767,106 45,222,600 45,512,500 46,650,700 150 2016 2017 2018 2018 2019 ACTUAL ACTUAL BUDGETED ESTIMATED ADOPTED REVENUES REVENUES REVENUES REVENUES BUDGET REVENUES TOTAL PROPERTY TAXES LEVIED TO OTHER FUNDS Build America Bond Credits Debt Services 336,190 205,845 202,100 188,800 166,000 Bond Abatements from Debt Service Fund 10,338,331 8,214,802 8,479,800 8,405,800 8,625,500 Appropriation. from Debt Svc. Fund 350,000 250,000 0 0 0 151 GENERAL GOVENRNMENT TOTAL GENERAL GOVERNMENT 3,157,800 1,163,700 764,500 249,300 742,300 210,500 0 6,288,100 PUBLIC SAFETY TOTAL PUBLIC SAFETY 18,586,900 6,568,800 1,309,800 196,000 700 448,100 198,300 27,308,600 PUBLIC WORKS TOTAL PUBLIC WORKS 3,312,300 1,378,700 265,300 152,100 1,800 1,504,700 0 6,614,900 PARKS & OTHER FACILITIES TOTAL PARKS & OTHER FAC.1,233,100 426,500 77,400 228,000 4,500 219,800 0 2,189,300 COMMUNITY DEVELOPMENT TOTAL COMMUNITY DEV.1,247,200 413,200 285,100 3,000 100 13,300 0 1,961,900 DEPT. OF TRANSPORTATION TOTAL DEPT. OF TRANS.426,100 144,000 22,400 46,400 100 111,000 10,000 760,000 2019 OPERATING BUDGET BY FUNCTION 152 2019 OPERATING BUDGET BY FUNCTION UNCLASSIFIED TOTAL UNCLASSIFIED 0 568,100 959,800 0 0 0 0 1,527,900 TOTAL GENERAL FUND BUDGET 27,963,400 10,663,000 3,684,300 874,800 749,500 2,507,400 208,300 46,650,700 TOTAL OPERATING BUDGET 33,681,900 12,679,900 6,892,100 2,264,700 1,030,600 3,812,000 1,374,200 61,735,400 153 CITY OF OSHKOSH PER $1,000 2018 2017 INCREASE OF TAXES TAX RATE TAX RATE (DECREASE) State 0.000 % $0.000 $0.000 $0.000 County 20.218%5.352 5.369 (0.017) Area Schools 35.600%9.424 9.774 (0.350) Area Vocational 4.208%1.114 1.105 0.009 City Tax 39.974%10.582 10.558 0.024 1.000 $26.472 $26.806 $(0.334) State Credit 1.725 1.732 (0.007) 2019 LEVY - 2018 TAX RATE County 20.218% Area Schools 35.600%Area Vocational 4.208% City Tax 39.974% 154 CITY OF OSHKOSH 2019 2018 INCREASE SOURCE OF FUNDS AMOUNT PERCENT PERCENT (DECREASE) Property Tax Levy $39,401,600 52.10%51.59%2.26% Other Tax Revenue 1,313,000 1.74%1.82%-0.04% State Expenditure Restraint Revenue 1,368,800 1.81%1.83%0.07% State Shared Revenue 9,687,800 12.81%13.19%-0.15% Aid to Local Streets 3,174,000 4.20%4.51%-0.06% Other State & County Aids 2,127,400 2.81%2.68%-0.04% Licenses, Permits, Fines 1,173,200 1.55%1.61%-0.01% Interdepartmental Charges 3,517,600 4.65%4.61%-0.21% Interest on Investments / Special Assessments 750,000 0.99%0.74%0.19% Miscellaneous Revenue 209,000 0.28%0.14%-0.01% Charges for Services 4,113,500 5.44%5.45%-1.10% Other Fund Revenues 8,791,500 11.62%11.83%-0.90% $75,627,400 100.00%100.00% SOURCE OF FUNDS Property Tax Levy 52.10% Other Tax Revenue 1.74% State Expenditure Restraint Revenue 1.81% State Shared Revenue 12.81% Aid to Local Streets 4.20% Other State & County Aids 2.81% Licenses, Permits, Fines 1.55% Interdepartmental Charges 4.65% Interest on Investments / Special Assessments 0.99% Miscellaneous Revenue 0.28% Charges for Services 5.44%Other Fund Revenues 11.62% 155 CITY OF OSHKOSH 2019 2018 INCREASE USE OF FUNDS AMOUNT PERCENT PERCENT (DECREASE) Parks $2,571,300 3.40%3.44%-0.04% Debt Services 20,408,700 26.99%27.04%-0.05% Library, Museum, GOH 3,675,800 4.86%4.82%0.04% Miscellaneous 2,552,900 3.38%3.10%0.28% Police 13,845,900 18.31%18.35%-0.04% Transportation 1,541,600 2.04%3.47%-1.43% Fire and Ambulance 13,462,700 17.80%18.04%-0.24% General Government 6,288,100 8.31%8.44%-0.13% Public Works 8,998,100 11.90%10.29%1.61% Community Development 1,961,900 2.59%2.58%0.01% Senior Services 320,400 0.42%0.43%-0.01% $75,627,400 100.00%100.00% USE OF FUNDS Parks 3.40% Debt Services 26.99% Library, Museum, GOH 4.86% Miscellaneous 3.38% Police 18.31% Transportation 2.04% Fire and Ambulance 17.80% General Government 8.31% Public Works 11.90% Community Development 2.59% Senior Services 0.42% 156 CITY OF OSHKOSH AMOUNT PERCENT Payroll - Direct Labor $33,681,900 41.0034% Agency Funds 0 0.0000% Payroll - Indirect Labor 12,679,900 15.4362% Fixed Charges 1,030,600 1.2546% Debt Retirement 20,408,700 24.8450% Contractual Services 6,892,100 8.3903% Utilities 2,264,700 2.7570% Materials & Supplies 3,812,000 4.6406% Capital Outlay 1,374,200 1.6729% 2019 BUDGET - USE OF FUNDS BY FUNCTION Payroll -Direct Labor 41.00% Agency Funds 0.00% Payroll -Indirect Labor 15.44% Fixed Charges 1.25% Debt Retirement 24.84% Contractual Services 8.39% Utilities 2.76% Materials & Supplies 4.64%Capital Outlay 1.67% ADDITIONAL INDEPENDENT AUDITORS’ REPORT FOR BASIC FINANCIAL STATEMENTS CliftonLarsonAllen LLP CLAconnect.com 157 Independent auditors’ report on internal control over financial reporting and on compliance and other matters based on an audit of financial statements performed in accordance with Government Auditing Standards To the Common Council Oshkosh, Wisconsin We have audited, in accordance with the 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, the financial statements of the governmental activities, the business-type activities, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Oshkosh, Wisconsin (the “City”) as of and for the year ended December 31, 2018, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated July 31, 2019. INTERNAL CONTROL OVER FINANCIAL REPORTING In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. COMPLIANCE AND OTHER MATTERS As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. 158 PURPOSE OF THIS REPORT The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. CliftonLarsonAllen LLP Green Bay, Wisconsin July 31, 2019