TOWN OF VTOALIA, LOUISIANA ANNUAL FINANCIAL STATEMENTS AS OF JUNE 30,2007 AND FOR THE YEAR THEN ENDED

Transcription

1 TWN F VTALIA, LUISIANA ANNUAL FINANCIAL STATEMENTS AS F JUNE 30,27 AND FR THE YEAR THEN ENDED Under prvisins f state law, this reprt is a public dcument. Acpy f the reprt has been submitted t the entity and ther apprpriate public fficials. The reprt is available fr public inspectin at the Batn Ruge ffice f the Legislative Auditr and, where apprpriate, at the ffice f the parjsh clerk f curt. Release Date

2 TWN F VIDALIA, LUISIANA Annual Financial Statements As f and fr the Year Ended June 30, 27 With Supplemental Infrmatin Schedules CTENTS Statement Page Independent Auditr's Reprt 1-2 Required Supplemental Infrmatin (Part I) Management's Discussin and Analysis 3-10 Basic Financial Statements Gvernment-Wide Financial Statements: Statement f Net Assets A 11 Statement f Activities B 12 Fund Financial Statements: Gvernmental Funds: Balance Sheet C 13 Recnciliatin f the Gvernmental Funds Balance Sheet t the Gvernment-Wide Financial Statement f Net Assets D 14 Statement f Revenues, Expenditures, and Changes in Fund Balances E Recnciliatin f the Statement f Revenues, Expenditures, and Changes in Fund Balances f Gvernmental Funds t the Statement f Activities F 17 Prprietary Funds: Statement f Net Assets G 18 Statement f Revenues, Expenses, and Changes in Net Assets H 19 Statement f Cash Flws I 20

3 Page Ntes t the Financial Statements Required Supplemental Infrmatin (Part II) Budgetary Cmparisn Schedule - General Fund 38 Budgetary Cmparisn Schedule - Special Revenue Fund - Hydr Ryalty Fund 39 Ntes t the Required Supplementary Infrmatin 40 ther Supplemental Infrmatin Nnmajr Gvernmental Funds: Cmbining Balance Sheet 41 Cmbining Statement f Revenues, Expenditures, and Changes In Fund Balances 42 Cmparative/Cmbining Financial Statements and Schedules General Fund 43 Cmparative Balance Sheet 44 Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 45 Statement f Expenditures Cmpared t Budget (GAAP Basis) Special Revenue Funds 53 Hydr Ryalty Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 54 Sales Tax Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 55 Ambulance Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 56

4 Page Twn Curt Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 57 Debt Service Funds 58 Cmbining Balance Sheet 59 Sales Tax Bnds Sinking Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 60 Debt Service Funds Cmbining Statement f Revenues, Expenditures, and Changes in Fund Balance 61 Sales Tax Bnds Reserve Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 62 Capital Prjects Funds 63 Cmbining Balance Sheet 64 Cmbining Statement f Revenues, Expenditures and Changes in Fund Balance 65 River Frnt Develpment Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual.. 66 Industrial Park Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 67 Sales Tax Bnd Cnstructin Fund Statement f Revenues, Expenditures, and Changes in Fund Balance - Budget (GAAP Basis) and Actual 68 Enterprise Funds 69 Cmbined Balance Sheet 70 Cmbined Statement f Revenues, Expenses, and Changes in Net Assets 71 Cmbined Statement f Cash Flws - Increase (Decrease) in Cash and Cash Equivalents Utility Fund Cmparative Statement f perating Revenues and Expenses 74-78

5 Page Reprts n Internal Cntrls and Cmpliance 79 Reprt n Internal Cntrl ver Financial Reprting and n Cmpliance and ther Matters Based n an Audit f the Financial Statements Perfrmed in Accrdance with Gvernment Auditing Standards Schedule f Findings 82 Current Year Findings and Recmmendatins 83 Status f Prir Audit Findings 84

6 SWITZER, HPKINS & MANGE Certified Public Accuntants PST FFICE BX 478 FERRIDAY, LUISIANA DENNIS R. SWITZER, CPA H. MYLES HPKINS, CPA SUSAN L. MANGE, CPA JHN M. JES, CPA NRTH E.E. WALLACE BLVD. FERRIDAY, LUISIANA TELEPHE (318) FAX (318) FFICES IN NATCHEZ, MISSISSIPPI INDEPENDENT AUDITR'S REPRT The Hnrable Hyram Cpeland, Mayr and Members f the Bard f Aldermen TwnfVidalia Vidalia, Luisiana We have audited the accmpanying financial statements f the gvernmental activities, the business-type activities, each majr fund, and the aggregate remaining fund infrmatin f the Twn f Vidalia, Luisiana, as f and fr the year ended June 30, 27, which cllectively cmprise the Twn's basic financial statements as listed in the table f cntents. These financial statements are the respnsibility f the Twn's management. ur respnsibility is t express pinins n these financial statements based n ur audit. We cnducted ur audit in accrdance with auditing standards generally accepted in the United States f America and the standards applicable t financial audits cntained in Gvernment Auditing Standards, issued by the Cmptrller General f the United States. Thse standards require that we plan and perfrm the audit t btain reasnable assurance abut whether the financial statements are free f material misstatement. An audit includes examining, n a test basis, evidence supprting the amunts and disclsures in the financial statements. An audit als includes assessing the accunting principles used and significant estimates made by management, as well as evaluating the verall financial statement presentatin. We believe that ur audit prvides a reasnable basis fr ur pinins. In ur pinin, the financial statements referred t abve present fairly, in all material respects, the respective financial psitin f the gvernmental activities, the business-type activities, each majr fund, and the aggregate remaining fund infrmatin f the Twn f Vidalia, Luisiana as f June 30, 27, and the respective changes in financial psitin and cash flws, where applicable, theref fr the year then ended in cnfrmity with accunting principles generally accepted in the United States f America. In accrdance with Gvernment Auditing Standards, we have als issued ur reprt dated July 30, 28, n ur cnsideratin f the Twn f Vidalia, Luisiana's internal cntrl ver financial reprting and ur test f its cmpliance with certain prvisins f laws, regulatins, cntracts, and grant agreements and ther matters. The purpse f that reprt is t describe the scpe f ur testing f internal cntrl ver financial reprting and cmpliance and the results f that testing, and nt t prvide an pinin n the internal cntrl ver financial reprting r n cmpliance. That reprt is an integral part f an audit perfrmed in accrdance with Gvernment Auditing Standards and shuld be cnsidered in assessing the results f ur audit.

7 The Hnrable Hyram Cpeland, Mayr and Members f the Bard f Aldermen The management's discussin and analysis and budgetary cmparisn infrmatin n Pages 3 thrugh 10 and Pages 38 thrugh 40, are nt a required part f the basic financial statements but are supplementary infrmatin required by accunting principles generally accepted in the United States f America. We have applied certain limited prcedures, which cnsisted principally f inquiries f management regarding the methds f measurement and presentatin f the supplementary infrmatin. Hwever, we did nt audit the infrmatin and express n pinin n it. Ferriday, Luisiana July 30, 28

8 Required Supplemental Infrmatin (Part I)

9 TWN F VIDALIA, LUISIANA MANAGEMENT'S DISCUSSI AND ANALYSIS JUNE 30,27 The management f the Twn f Vidalia, Luisiana ffers readers f the Twn f Vidalia, Luisiana's (Twn) financial statements this narrative verview and analysis f the financial activities f the Twn fr the fiscal year ended June 30, 27. This management discussin and analysis (MD&A) is designed t prvide an bjective analysis f the Twn's financial activities based n currently knwn facts, decisins, and cnditins. It is intended t prvide readers with a brad verview f Twn finances. It is als intended t prvide readers with an analysis f the Twn's shrt-term and lng-term activities based n infrmatin presented in the financial reprt and fiscal plicies that have been adpted by the Twn. Specifically, this sectin is designed t assist the reader in fcusing n significant financial issues, prvide an verview f the Twn's financial activity, identify changes in the Twn's financial psitin (its ability t address the next and subsequent year challenges), identify any material deviatins frm the financial plan (the apprved budget), and identify individual fund issues r cncerns. verview f the Financial Statements This sectin is intended t serve as an intrductin t the Twn's financial statements. The Twn's basic financial statements cnsist f the gvernment-wide financial statements, fund financial statements, and ntes t the financial statements. This reprt als cntains ther supplementary infrmatin, which is in additin t the basic financial statements. Gvernment-Wide Financial Statements Gvernment-wide financial statements are designed t prvide readers with a cncise "entity-wide" Statement f Net Assets and Statement f Activities, which seek t give the user f the financial statements a brad verview f the Twn's financial psitin and results f peratins in a manner similar t private sectr businesses. The statement f net assets presents infrmatin n all f the Twn's assets and liabilities using the accrual basis f accunting, which is similar t the accunting used by mst private sectr cmpanies. The difference between the tw is reprted as net assets. ver time, increases r decreases in net assets may serve as a useful indicatr f whether the financial psitin f the Twn is imprving r weakening. The statement f activities presents infrmatin which shws hw the gvernment's net assets changed during this fiscal year. All changes in net assets are reprted as sn as the underlying event ccurs, regardless f the timing f the related cash flws. Thus, revenues and expenses are reprted in this statement fr sme items that will nly result in cash flws in future perids (e.g. uncllected taxes). Each f these reprts is brken dwn between gvernmental activities and business-type activities. Gvernmental activities nrmally are thse activities that are supprted by taxes, licenses, permits, fines and intergvernmental revenues, fr example, the plice and fire departments. Business-type activities are functins that are intended t supprt their csts thrugh charges fr services r fees such as the Gas, Electric, Water, and Sewer Departments.

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13 Business-Type Activities (cntinued) The reasns fr majr fluctuatins nted abve are as fllws: Althugh grss revenues f the Utility Fund decreased frm $10,935,074 in the previus fiscal year t $10,905,772 in the fiscal year ended June 30, 27, it still sustained a net perating gain f $240,508 fr the current fiscal year cmpared t a lss f $448,687 in the previus fiscal year. As f Nvember 25, the Twn initiated a fuel adjustment clause int its natural gas and electric rate schedules. This increase was sufficient t prevent the Utility Fund frm incurring a substantial lss fr the current fiscal year. Items affecting the Utility Fund net perating gain f $240,508 included a decrease in the cst f pwer and natural gas and increased cst in payrll and peratin materials fr fiscal year 27. The cst f pwer and natural gas decreased frm $8,251,070 in fiscal year 26, t $7,174,999 in the current fiscal year while the cst f payrll and perating materials increased frm $3,132,691 in fiscal year 26, t $3,490,215 in the current fiscal year. The Twn's Utility Fund generates net revenues used fr General Fund supprt. In the past three fiscal years the Utility Fund has sustained ttal net lsses f $648,289, therefre, the Twn has relied n net revenues f the Hydr Electric Fund t replace thse previusly supplied by the Cmbined Utility Fund fr the supprt f General Fund peratins. Fund Financial Statements - Gvernmental Funds The fund financial statements prvide mre detailed infrmatin abut the Twn's mst significant funds - nt the Twn as a whle. Funds are accunting devices that the Twn uses t keep track f specific surces f funding and spending fr a particular purpse. The Twn maintains fur individual gvernmental fund types. These fund types are General, Special Revenue, Debt Service, and Capital Prjects Funds. Infrmatin is presented separately in the Gvernmental Funds Balance Sheet (Statement C) and in the Gvernmental Fund Statement f Revenues, Expenditures, and Changes in Fund Balances (Statement E) fr the General Fund, Hydr Ryalty Fund, River Frnt Develpment Fund, and the Industrial Park Fund, which are cnsidered t be majr funds. Transactins f the remaining gvernmental funds are cmbined and shwn as ther Gvernmental Funds n these statements. Individual fund data fr each f the nnmajr gvernmental funds is prvided in the frm f cmbining and individual financial statements in the supplemental infrmatin prtin f this reprt, beginning n Page 41. The Twn adpts an annual budget fr its gvernmental funds. A statement f revenues, expenditures, and changes in fund balance fr the General Fund is presented in the Required Supplemental Infrmatin (Part II) which cmpares actual revenues and expenditures t the riginal budget and amended budget figures. Budgeted amunts fr the remainder f the Gvernmental Funds are presented in the individual fund statements. Financial Analysis f the Twn's Gvernmental Funds The Twn f Vidalia's gvernmental funds reprted cmbined ending fund balances f $9,119,581, which is an increase f $1,895,594. This increase was caused by a decrease in fund balance f $58,429 in the General Fund, an increase f $1,702,775 in the Hydr Ryalty Fund, a decrease f $268,349 in the River Frnt Develpment Fund and an increase f $519,597 in the ther Gvernment Funds.

14 Fund Financial Statements - Gvernmental Funds (cntinued) Gvernmental Funds - Summary f Financial Data: Fiscal year ended June 30, 26 Fiscal year ended June 3 0,27 Increase (decrease) between years General $ 4,442,662 4,318,164 $ (124,498) Special Revenue $ 11,735,662 $ 14,995,243 $ 3,259,581 $ Revenue and Transfers In Debt Service 611,338 $ 1,358, ,892 $ Capital Priects 2,391,053 5,6,449 2,615,396 Ttal $ 19,180,715 $ 25,678,086 $ 6,497,371 Fiscal year ended June 30, 26 Fiscal year ended June 30, 27 Increase (decrease) between years General $ 4,625,081 4,376,593 $ (248,488) Special Revenue $ 12,652,2 $ 12,793,210 Expenditures and Transfers ut Debt Service $ 141,208 $ 579,940 $ 1,301, ,307 $ Capital Prjects 2,480,550 5,311,442 2,830,892 Ttal $ 20,337,573 $ 23,782,492 $ 3,444,919 Fiscal year ended June 30, 26 Fiscal year ended June 30, 27 Increase (decrease) between years General $ (182,419) (58,429) $ 123,990 Special Revenue Changes $ (916,340) $ 2,202,033 $ 3,118,373 $ in Fund Balance Debt Service 31,398 $ 56,983 25,585 $ Capital Prjects (89,497) (304,993) (215,496) Ttal $ (1,156,858) $ 1,895,594 $ 3,052,452 Fund Financial Statements - Prprietary Funds The Twn maintains ne prprietary fund. Prprietary funds are used t reprt the same functins as business-type activities. The Twn uses enterprise funds (the first type f prprietary fund) t accunt fr its Cmbined Gas, Electric, Water, and Sewer peratins. This enterprise fund reprts the same functins presented as business-type activities in the gvernment-wide financial statements. Financial Analysis f the Twn's Prprietary Funds The Twn's prprietary fund shw a decrease in ending fund balance f $48,8. The 27 perating prfit f the Gas Department f $84,474 represents a $241,969 increase frm fiscal year 26. The fiscal year 27 perating lss f the Water and Sewer Departments f $183,038 represents a decrease in lss f $119,0 frm fiscal year 26. The Electric Department generated an perating prfit sufficient t ffset lses frm the Gas, Water, and Sewer Departments, and shws an perating incme f $824,205, which represents an increase f $813,359 frm fiscal year 26.

15 Fund Financial Statements - Prprietary Funds - (cntinued) In that financial statements f enterprise funds are presented n the same basis f accunting as in bth the gvernmentwide financial statements and the individual fund statements, all cmments and analysis made under business-type activities apply t these funds. Capital Asset and Debt Administratin The ttal investment in net capital assets as f June 30, 27 is $35,626,057, as cmpared t $25,935,587 as f the end f the previus fiscal year. The majr capital assets additins during the fiscal year 27 were $744,856 f equipment acquisitins. During the current fiscal year, $886,576 f cnstructin prjects were cmpleted. In additin t the abve, the Twn has Cnstructin in Prgress ttaling $6,025,684 as f June 30, 27. This cnstructin is a cntinuatin f the River Frnt Develpment f $5,256,345 and additins t the Twn's Cmbined Utility System f $769,339. As f June 30, 27, the Twn als has utstanding bligatins under uncmpleted River Frnt Develpment cnstructin cntracts ttaling $312,508. At the end f the current fiscal year, the Twn had a ttal utstanding bnded debt f $5,305,0. Principal payments f $330,0 are due during the upcming fiscal year. These bligatins are financed thrugh a 1% sales tax cllected within the crprate limits f Vidalia. General Fund Budgetary Highlights The Twn did nt amend its riginal budget and, as such, there were several budgetary deviatins, the majr f which invlved the purchase f equipment and cnstructin f facilities in the amunt f $502,583. Althugh the budget was nt revised t reflect these items, all were apprved at the regular meeting f the Mayr and Bard f Aldermen. Current Financial Factrs As stated previusly, the Twn increased its Gas and Electric rates s as t absrb increases in the cst f natural gas and electricity as well as increases in perating csts f its Cmbined Utility Fund ver recent fiscal years. Even with these increases, the Utility Fund was unable t generate net revenues fr the supprt f General Fund activities and therefre net revenues frm the Hydr Ryalty Fund was used fr the supprt f bth the General and Utility Fund activities. During the fiscal year just ended, the Hydr Ryalty Fund prvided $2,525,0 twards funding the peratins f the General and Utility Funds cmpared t $4,504,659 in the previus fiscal year. It is anticipated that rate increases initiated in Nvember 26 will yield additinal net revenues f apprximately $850,0 fr the upcming fiscal year which will lessen amunts required fr anticipated increases in the cst f natural gas and electricity, and inability f the Hydr Electric Fund t prvide additinal supprt. Increases in perating csts, will require increases in the fees and charges the Twn cllects. In the event the Twn is unable t reduce its cst f peratins, these increases will be substantial. In additin t the increases nted abve, in the event that the net revenues f the Hydr Electric Fund wuld decrease due t a lw water, lw prductin year, utility rates wuld have t be increased by as much as 27% in rder t generate revenues necessary t supprt general fund activities, r services prvided t its citizens wuld have t be severely cut.

16 10 Requests fr Infrmatin This financial reprt is designed t prvide a general verview f the Twn f Vidalia, Luisiana's finances fr all with an interest in the gvernment's peratins. Questins cncerning any f the infrmatin prvided in this reprt r requests fr additinal infrmatin shuld be addressed t Ken Walker, Cmptrller, Pst ffice Bx 2010, Vidalia, Luisiana

17 Basic Financial Statements

18 Gvernment-Wide Financial Statements

19 11 STATEMENT A TWN F VIDALIA, LUISIANA STATEMENT F NET ASSETS JUNE 30,27 ASSETS Cash and cash equivalents Receivables (net f allwances fr uncllectibles) Internal balances Due frm ther agencies Due frm ther gvernments Restricted assets Capital assets (net) Gvernmental Activities $ 6,855, ,202 (191,772) 3,817, ,213-24,988,964 Business- Type Activities $ 614,814 1,295, ,772 3,248 2,0 238,550 10,637,093 Ttal $ 7,470,519 1,545,444-3,820, , ,550 35,626,057 Ttal assets 36,043,960 12,982,719 49,026,679 LIABILITIES Accunts, salaries and ther payables Payable frm restricted assets Interest payable Accrued liabilities ther liabilities Bnds payable, due within ne year Bnds payable, beynd ne year 1,707,160-18, ,070 17, ,0 4,975,0 929, , ,636, ,550 18, ,070 17, ,0 4,975,0 Ttal liabilities 7,258,426 1,168,102 8,426,528 NET ASSETS Invested in capital assets, net f related debt Restricted fr: Debt service Capital prjects Special revenues Unrestricted Ttal net assets 19,683, , ,115 2,240,0 5,857,219 $ 28,785,534 10,637, ,177,524 $ 11,814,617 30,321, , ,115 2,240,0 7,034,743 $ 40,6,151 The accmpanying ntes are an integral part f this financial statement.

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21 Fund Financial Statements

22 Gvernmental Funds

23 a w «2 c, H E tin 5 X m t^ Tt ^- t> fn S X t^ m >n x m s" m" -H' s I s - -H r-. r^ --< x 1> s m m -H " <n" " Tt C^ fn X in in x fn s m s Tt Tt S X " 13 x x" m in in in t-- (" s >n m --i fn in" " ^ C^ s * " s fn r- m r-" s Tt in^ " s X c g ' a. > * Q fn S m x 1 X s G 0) s(u I fn in s fn m r- x^ m" s" X t^ f^ S ^r fn r- fn CD " Tt fn fn <n S fn, s" Tt "1 " m s x" CD fn" Tt.5 *3 i a. 2 JD G a, S -G H 1 u es fr uncllectible: u G a _ ~a <+* -t-i c s_^ u eceivabl & <».32 ' c D t- 1 J 3 Q tfi +^aw a > Ml iū S u Q «g t3^u (fc 3 Q t/} 1-1 U[A CA c3 "3 <-t H 2 g U) «^ u - 9 S w (3 S tg U & 3 h S g a..a s.-^ «2 5 1 U S y VJ S< \* p- *-> S U < < Q ab Tta Fund ba ed B jec Ut; a u T3 a. ^ u I» * 3 s a w & e U c«q u <u 5 a a a u S B I 8? U u, g "S "3-3.2 * u. a, «V3 U «I X! S H

24 TWN F VIDALIA, LUISIANA RECCILIATI F THE GVERNMENTAL FUNDS BALANCE SHEET T THE GVERNMENT-WIDE FINANCIAL STATEMENT F NET ASSETS JUNE 30,27 14 STATEMENT D Fund Balances, Ttal Gvernmental Funds (Statement C) $ 9,119,581 Amunts reprted fr gvernmental activities in the Statement f Net Assets are different because: Net capital assets used in gvernmental activities are nt financial resurces and, therefre, are nt reprted in the gvernmental funds. Lng-term liabilities including bnds payable are nt due and payable in the current perid and, therefre, are nt reprted in the gvernmental funds. Accrued interest payable Bnds payable 24,988,964 $ 18,011 5,305,0 (5,323,011) Net Assets f Gvernmental Activities (Statement A) $ 28,785,534 The accmpanying ntes are an integral part f this financial statement.

25 UISIANA TWN F VrALIA, L m CHANGES EV FUND BALANCES UNDS 3 fe K UES, EXPENDITURES, i GVERNMENTAL Z JNE 30, 27 R THE YEAR ENDED. U, STATEMENT E Ryalty Develpment Gvernmental Gvernmental General Fund Funds Funds Funds Fund Tf" r*i & N v r^ < (N r ō " in in r- " r- r- r- r-' " m ^ IN" N in if) r- m r ^ " " " m -<t N N m in r- r-" _ vj m l> r-' r-" m ^D v m r- ' r- in»n ' (S * 0).S 4 t 15 fe H Cd H H C/3 in H Ad valrem w 3 T3 "3 c Q. ther taxes, g. Licenses and ^c Intergvernm d frf I S w C u -g fc -S ^ IJ Q 1 u c <u ^ "a «u u 3 " 3 CL, <u E w 1 s "3 XI a 3 is 3 C/3 H C I 1 D, ;-; W) J= u s 13 <L> T3 U 1 c w ^"3 3

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27 TWN F VIDALIA, LUISIANA RECCILIATI F THE STATEMENT F REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES F GVERNMENTAL FUNDS T THE STATEMENT F ACTIVITIES FR THE YEAR ENDED JUNE 30,27 17 STATEMENT F Net Change in Fund Balances, Ttal Gvernmental Funds, Statement E $ 1,895,594 Amunts reprted fr gvernmental activities in the Statement f Activities are different because: Gvernmental funds reprt capital utlays as expenditures. Hwever, in the statement f activities, the cst f thse assets is allcated ver their estimated useful lives and reprted as depreciatin expense. This is the amunt by which capital utlays exceeded depreciatin in the current perid. 4,227,939 Gvernmental funds d nt reprt transfers f capital assets t business-type activities, but business-type activities reprt these transfers as capital cntributins. Therefre, the transfer f cnstructin in prgress frm gvernmental activities t business-type activities results in a difference between the change in net assets and the change in fund balance by the amunt f the transfer. (769,339) The prceeds f lng-term debt prvides current financial resurces t gvernmental funds, but issuing debt increases lng-term liabilities in the statement f net assets. Repayment f the principal f lng-term debt is an expenditure in the gvernmental funds, but the repayment reduces lng-term liabilities in the Statement f Net Assets. Thus the change in net assets differs frm the change in fund balances by the amunt that debt repayment exceeds debt prceeds. 125,0 Sme expenses reprted in the statement f activities d nt require the use f current financial resurces and, therefre, are nt reprted as expenditures in gvernmental funds. This amunt is the net effect f these differences in the treatment f interest paid n debt. 5,071 Change in Net Assets f Gvernmental Activities, Statement B $ 5,484,265 The accmpanying ntes are an integral part f this financial statement.

28 Prprietary Funds

29 18 STATEMENT G TWN F VIDALIA, LUISIANA STATEMENT F NET ASSETS PRPRIETARY FUNDS JUNE 30, 27 ASSETS Current assets: Cash and cash equivalents Receivables (net f allwances fr uncllectibles) Due frm ther agencies Due frm ther gvernments Due frm ther funds Ttal current assets Business-Type Activities Enterprise Fund Utility Fund 614,814 1,295,242 3,248 2,0 619,295 2,534,599 Nncurrent assets Restricted assets: Cash Capital assets (net f accumulated depreciatin) Ttal nncurrent assets 238,550 10,637,093 10,875,643 Ttal assets 13,410,242 LIABILITIES Current liabilities: Accunts payable Accrued liabilities Due t ther funds Ttal current liabilities 807, , ,524 1,357,075 Current liabilities payable frm restricted assets Cnsumer depsits Ttal liabilities 238,550 1,595,625 NET ASSETS Invested in capital assets, net f related debt Unrestricted Ttal net assets 10,637,093 1,177,524 $ 11,814,617 The accmpanying ntes are an integral part f this financial statement.

30 TWN F VTALIA, LUISIANA STATEMENT F REVENUES, EXPENSES, AND CHANGES IN NET ASSETS PRPRIETARY FUNDS FR THE YEAR ENDED JUNE 30, STATEMENT H PERATING REVENUES Charges fr services: Gas sales Electricity sales Water sales Sewer charges Ttal perating revenues Business-Type Activities Enterprise Fund Utility Fund 1,107,533 8,816, , ,816 10,905,722 PERATING EXPENSES Purchases and sales tax Persnal services Materials and supplies ther services and charges Depreciatin Ttal perating expenses 7,174,999 1,851,3 462, , ,874 10,665,214 perating incme Nnperating Revenues Interest earnings Incme Befre Transfers PERATING TRANSFERS AND CTRIBUTIS Capital cntributins Transfers - in Transfers - ut Change in Net Assets Ttal net assets - beginning Ttal net assets - ending 240,508 21, , , ,0 (1,829,677) (48,8) 11,863,417 $ 11,814,617 The accmpanying ntes are an integral part f this financial statement.

31 Cash Flws Frm perating Activities Receipts frm custmers and users Payments t suppliers Payments t emplyees Net cash prvided fr perating activities TWN F VIDALIA, LUISIANA STATEMENT F CASH FLWS PRPRIETARY FUNDS FR THE YEAR ENDED JUNE 30,27 20 STATEMENT I Business-Type Activities Enterprise Fund Utility Fund $ 10,971,134 (9,140,292) (1,161,446) 669,396 Cash Flws Frm Nncapital Financing Activities Lans frm ther funds Transfers frm ther funds Transfers t ther funds Net cash used by nncapital financing activities 96, ,0 (1,829,677) (983,570) Cash Flws Frm Capital and Related Financing Activities Purchases f fixed assets (397,405) Cash Flws frm Investing Activities Interest n temprary investments 21,030 Net increase in cash and cash equivalents (690,549) Cash and cash equivalents, beginning f year Cash and cash equivalents, end f year 1,543, ,364 Recnciliatin f perating Incme t Net Cash Use Fr perating Activities perating incme 240,508 Adjustments t Recncile perating Incme T Net Cash Used fr perating Activities Depreciatin Change in assets and liabilities Decrease in: Accunts receivable Prepaid expenses Increase (decrease) in Accunts payable Accrued liabilities Custmer depsits Ttal adjustments 364,874 68,277 1,857 (10,103) 6,848 (2,865) 428,888 Net cash used fr perating activities 669,396 The accmpanying ntes are an integral part f this financial statement.

32 Ntes t the Financial Statements

33 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 21 INTRDUCTI The Twn f Vidalia is a municipal crpratin gverned by an elected mayr. 1. The Twn f Vidalia, Luisiana was incrprated under prvisins f the Lawrasn Act as a Twn April 1, The purpse f the municipality is t prvide the fllwing services as authrized by the Lawrasn Act: public safety (plice, fire and ambulance); streets; sanitatin; health; culture-recreatin; public imprvements; planning and zning; prvisin f gas, electric and water utilities; sewer services; and general administrative services. 3. The Bard f Aldermen cnsists f five elected members that are paid $251 per mnth fr regular meetings and $251 fr each special meeting. 4. The Twn f Vidalia is lcated in the nrtheastern prtin f Cncrdia Parish, Luisiana. Cncrdia Parish is lcated in nrtheastern Luisiana. 5. The ppulatin f Vidalia is apprximately 6,0. 6. The Twn f Vidalia had 128 emplyees as f June 30, The Twn f Vidalia has 2,128 electric system utility custmers at June 30, 27. The custmers cnsist f 1,864 residential custmers and 264 cmmercial custmers. GASB Statement N. 14, The Reprting Entity, established criteria fr determining the gvernmental reprting entity and cmpnent units that shuld be included within the reprting entity. Under prvisins f this Statement, the municipality is cnsidered a primary gvernment, since it is a special purpse gvernment that has a separately elected gverning bdy, is legally separate, and is fiscally independent f ther state r lcal gvernments. As used in GASB Statement N. 14, fiscally independent means that the municipality may, withut the apprval r cnsent f anther gvernmental entity, determine r mdify its wn budget, levy its wn taxes r set rates r charges, and issue bnded debt. NTE 1 - SUMMARY F SIGNIFICANT ACCUNTING PLICIES A. Financial Reprting Entity This reprt includes all funds and accunt grups which are cntrlled by r dependent n the Twn executive and legislative branches (the Mayr and Bard f Aldermen). The scpe f the gvernmental entity included in this reprt was determined by applying the criteria established by the Gvernmental Accunting Standards Bard's Statement Number 14. The applicatin f these criteria revealed n additinal gvernmental reprting entities, which wuld be prperly included in these financial statements. The Twn Marshall's balances and transactins are accunted fr in the Twn Curt Fund.

34 22 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 NTE 1 - SUMMARY F SIGNIFICANT ACCUNTING PLICIES (cntinued) B. Basis f Presentatin Gvernment-Wide and Fund Financial Statements The gvernment-wide financial statements (i.e., the statement f net assets and the statement f activities) reprt infrmatin n all f the nnfiduciary activities f the gvernment. Fr the mst part, the effect f interfund activity has been remved frm these statements. Gvernmental activities, which nrmally are supprted by taxes and intergvernmental revenues, are reprted separately frm business-type activities, which rely t a significant extent n fees and charges fr supprt. The statement f activities demnstrates the degree t which the direct expenses f a given functin r segment are ffset by prgram revenues. Direct expenses are thse that are clearly identifiable with a specific functin r segment. Prgram revenues include (1) charges t custmers r applicants wh purchase, use, r directly benefit frm gds, services, r privileges prvided by a given functin r segment, and (2) grants and cntributins that are restricted t meeting the peratinal r capital requirements f a particular functin r segment. Taxes and ther items nt prperly included amng prgram revenues are reprted instead as general revenues. Separate financial statements are prvided fr gvernmental funds and prprietary funds. Majr individual gvernmental funds and majr individual enterprise funds are reprted as separate clumns in the fund financial statements C. Measurement Fcus, Basis f Accunting, and Financial Statement Presentatin The gvernment-wide financial statements are reprted using the ecnmic resurces measurement fcus and the accrual basis f accunting, as are the prprietary fund financial statements. Revenues are recrded when earned, and expenses are recrded when a liability is incurred, regardless f the timing f related cash flws. Prperty taxes are recgnized as revenues in the year fr which they are levied. Grants and similar items are recgnized as revenue as sn as all eligibility requirements impsed by the prvider have been met. Gvernmental fund financial statements are reprted using the current financial resurces measurement fcus and the mdified accrual basis f accunting. Revenues are recgnized as sn as they are bth measurable and available. Revenues are cnsidered t be available when they are cllectible within the current perid r sn enugh thereafter t pay liabilities f the current perid. Fr this purpse, the gvernment cnsiders revenues t be available if they are cllected within 60 days f the end f the current fiscal perid. Expenditures generally are recrded when a liability is incurred, as under accrual accunting. Hwever, debt service expenditures, as well as expenditures related t cmpensated absences and claims and judgments, are recrded nly when payment is due. Prperty taxes, franchise taxes, licenses, and interest assciated with the current fiscal perid are all cnsidered t be susceptible t accrual and s have been recgnized as revenues f the current fiscal perid. All ther revenue items are cnsidered t be measurable and available nly when cash is received by the gvernment. The municipality reprts the fllwing majr gvernmental funds: The General Fund is the municipality's primary perating fund. It accunts fr all financial resurces f the general gvernment, except thse required t be accunted fr in anther fund.

35 TWN F VTALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 23 NTE 1 - SUMMARY F SIGNIFICANT ACCUNTING PLICIES (cntinued) C. Measurement Fcus, Basis f Accunting, and Financial Statement Presentatin (cntinued) The Hydr Ryalty Fund is used t accunt fr the revenues and expenses f the hydrelectric prject. The River Frnt Develpment Fund is used t accunt fr the cllectin and expenditure f revenues fr the acquisitin and develpment f the Twn's riverfrnt. Financing is being prvided frm general revenues and federal and state grants. The municipality reprts the fllwing majr prprietary fund: The Utility Fund is used t accunt fr the prvisin f gas, electric, and water utilities, as well as sewer services t residents f the Twn and sme residents f the Parish. All activities necessary t prvide such services are accunted fr in this fund, including, but nt limited t, administratin, peratins, maintenance, financing, and related debt service and billing and cllectin. Private-sectr standards f accunting and financial reprting issued prir t December 1, 1989, generally are fllwed in bth the gvernment-wide and prprietary fund financial statements t the extent that thse standards d nt cnflict with r cntradict guidance f the Gvernmental Accunting Standards Bard. Gvernments als have the ptin f fllwing subsequent private-sectr guidance fr their business-type activities and enterprise funds, subject t this same limitatin. The gvernment has elected nt t fllw subsequent private-sectr guidance. As a general rule the effect f interfund activity has been eliminated frm the gvernment-wide financial statements. Exceptins t this general rule are payments-in-lieu f taxes and ther charges between the gvernment's enterprise peratins. Eliminatin f these charges wuld distrt the direct csts and prgram revenues reprted fr the varius functins cncerned. Amunts reprted as prgram revenues include (1) charges t custmers r applicants fr gds, services, r privileges prvided, (2) perating grants and cntributins, and (3) capital grants and cntributins. Internally dedicated resurces are reprted as general revenues rather than as prgram revenues. Likewise, general revenues include all taxes. Prprietary funds distinguish perating revenues and expenses frm nnperating items. perating revenues and expenses generally result frm prviding services and prducing and delivering gds in cnnectin with a prprietary fund's principal n-ging peratins. perating expenses fr enterprise funds and internal service funds include the cst f sales and services, administrative expenses, and depreciatin n capital assets. All revenues and expenses nt meeting this definitin are reprted as nnperating revenues and expenses. When bth restricted and unrestricted resurces are available fr use, it is the municipality's plicy t use restricted resurces first, then unrestricted resurces as they are needed. D. Cash and Cash Equivalents The municipality's cash and cash equivalents are cnsidered t be cash n hand, demand depsits, and shrt-term investments with riginal maturities f six mnths r less frm the date f acquisitin. State law and the municipality's investment plicy allw the municipality t invest in cllateralized certificates f depsits, gvernment-backed securities, cmmercial paper, the state spnsred investment pl, and mutual funds cnsisting slely f gvernment-backed securities.

36 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30, NTE 1 - SUMMARY F SIGNIFICANT ACCUNTING PLICIES (cntinued) E. Receivables and Payables Activity between funds that are representative f lending/brrwing arrangements utstanding at the end f the fiscal year are referred t as either "due t/frm ther funds" (i.e., the current prtin f interfund lans) r "advances t/frm ther funds" (i.e., the nncurrent prtin f interfund lans). All ther utstanding balances between funds are reprted as "due t/frm ther funds". Any residual balances utstanding between the gvernmental activities and business-type activities are reprted in the gvernment-wide financial statements as "internal balances". All trade and prperty tax receivables are shwn net f an allwance fr uncllectible accunts. Uncllectible amunts due fr ad valrem taxes and custmer's utility receivables are recgnized thrugh the establishment f an allwance accunt at the time infrmatin becmes available which wuld indicate the uncllectibility f the particular receivable. The Twn annually levies ad valrem taxes in accrdance with state statute fr the fiscal year ended June 30. Tax bills are prepared and delivered in ctber with payment due frm the date f receipt t the last day f February. Because f the due dates nted previusly, ad valrem taxes are nt cnsidered t be available resurces f the fiscal year t which they apply and are, therefre, nt accrued at the end f the fiscal year. The Twn bills and cllects its wn prperty taxes using the assessed values determined by the Tax Assessr f Cncrdia Parish. Fr the year ended June 30, 27, taxes f 3.49 mills were levied n prperty with assessed valuatins ttaling $38,954,970, after abatements and exemptins and were dedicated as fllws: General crprate purpses 3.49 mills F. Inventries Ttal taxes levied were $ 134,662 Fr bth gvernmental and prprietary funds, purchase f varius perating supplies are regarded as expenditures r expenses at the time purchased, and inventries f such supplies (if any) are nt recrded as assets at the clse f the fiscal year. Fr the year ending June 30, 27, these inventries were cnsidered t be immaterial and are nt recrded. G. Prepaid Items Certain payments t vendrs reflect csts applicable t future accunting perids and are recrded as prepaid items in bth gvernment-wide and fund financial statements. H. Restricted Assets - Utility Fund Restricted assets were applicable t the fllwing at June 30, 27 Cnsumer depsits $238,550

37 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 25 NTE 1 - SUMMARY F SIGNIFICANT ACCUNTING PLICIES (cntinued) I. Capital Assets Capital acquisitins and cnstructin are reflected as expenditures in Gvernmental Fund statements and the related assets are reprted as capital assets in the applicable gvernmental r business-type activities clumns in the gvernment-wide financial statements. Capital assets are capitalized at histrical cst r estimated cst if histrical cst is nt available. Dnated assets are recrded as capital assets at their estimated fair market value at the date f dnatin. The municipality maintains a threshld level f $5 r mre fr capitalizing capital assets. The csts f nrmal maintenance and repairs that d nt add t the value f the asset r materially extend assets lives are nt capitalized. Majr utlays fr capital assets and imprvements are capitalized as prjects are cnstructed. Interest incurred during the cnstructin phase f capital assets f business-type activities is included as part f the capitalized value f the assets cnstructed. All capital assets, ther than land, are depreciated using the straight-line methd ver the fllwing useful lives: Descriptin Streets and Parking Areas Imprvements ther Than Buildings Buildings and Structures Machinery and Equipment Estimated Lives Years Years Years 5-10 Years J. Cmpensated Absences The Twn has implemented GASB Statement Number 16 "Accunting fr Cmpensated Absences". Under GASB Statement Number 16, a liability fr unpaid vacatin that is attributable t services already rendered and that is nt cntingent n a specific event that is utside the cntrl f the emplyer and emplyee is accrued as emplyees earn the rights t benefits. The entire cmpensated absence liability is reprted n the gvernment-wide financial statements. Fr gvernmental fund financial statements, the current prtin f unpaid cmpensated absences is the amunt that is nrmally expected t be paid using expendable available financial resurces. These amunts are recrded in the accunt "cmpensated absences payable" in the fund frm which the emplyees wh have accumulated leave are paid. The nncurrent prtin f the liability is nt reprted. K. Lng-Term bligatins In the gvernment-wide financial statements and the prprietary fund types in the fund financial statements, lng-term debt and ther lng-term bligatins are reprted as liabilities in the applicable gvernmental activities, business-type activities, r prprietary fund type statement f net assets.

38 TWN F VTALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 26 NTE 1 - SUMMARY F SIGNIFICANT ACCUNTING PLICIES (cntinued) L. Fund Equity In the fund financial statements, gvernmental funds reprt reservatins f fund balance fr amunts that are nt available fr apprpriatin r are legally restricted by utside parties fr use fr a specific purpse. Designatins f fund balance represent tentative management plans that are subject t change. M. Estimates The preparatin f financial statements in cnfrmity with accunting principles generally accepted in the United States f America require management t make estimates and assumptins that affect the reprted amunts f assets and liabilities and disclsure f cntingent assets and liabilities at the date f the financial statements and the reprted amunts f revenues, expenditures, and expenses during the reprting perid. Actual results culd differ frm thse estimates. NTE 2 - STEWARDSHIP, CMPLIANCE, AND ACCUNTABILITY Budgets and Budgetary Accunting The Twn fllws prcedures established by Luisiana Revised Statute in the preparatin and adptin f its annual perating budgets as fllws: 1. The Twn Clerk prepares a prpsed budget and submits same t the Mayr and Bard f Aldermen n later than fifteen days prir t the beginning f each fiscal year. 2. A summary f the prpsed budget is published and the public ntified that the prpsed budget is available fr public inspectin. At the same time, a public hearing is called. 3. A public hearing is held n the prpsed budget at least ten days after publicatin f the call fr the hearing. 4. After the hlding f the public hearing and cmpletin f all actin necessary t finalize and implement the budget, the budget is adpted thrugh passage f an rdinance prir t the cmmencement f the fiscal year fr which the budget is being adpted. 5. Budgetary amendments invlving the transfer f funds frm ne department, prgram, r functin t anther r invlving increases in expenditures resulting frm revenues exceeding amunts estimated require the apprval f the Bard f Aldermen. 6. All budgetary apprpriatins lapse at the end f each fiscal year. 7. Budgets fr the General, Special Revenue, Debt Service Funds, and Capital Prject Funds are adpted n a basis cnsistent with generally accepted accunting principles (GAAP). Budget amunts are as riginally adpted, r as amended frm time t time by the Bard f Aldermen. EXCESS F EXPENDITURES VER APPRPRIATIS. The fllwing individual funds had actual expenditures ver budgeted apprpriatins fr the year ended June 30, 27.

39 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30, NTE 2 - STEWARDSHIP, CMPLIANCE, AND ACCUNTABILITY - cntinued Fund Hydr Ryalty Fund Twn Curt Fund Sales Tax Bnd Reserve Fund Industrial Park Fund Final Budget 5,501, ,625 Actual $ 8,337,134 76,064 16, ,064 Unfavrable Variance $ (2,835,384) (76,064) (16,685) (20,439) Ttals Deficits. The fllwing fund has a deficit in fund balance (net assets) at June 30, 27 Fund River Frnt Develpment Fund $ 446,385 NTE 3 - CASH AND CASH EQUIVALENTS At June 30, 27, the municipality has cash and cash equivalents (bk balances) ttaling $7,709,069 as fllws: Demand Depsit Cash n hand and NSF checks Ttal $ 7,7,824 8,245 $ 7,709,069 These depsits are stated at cst, which apprximates market. Under state law, these depsits (r the resulting bank balances) must be secured by federal depsit insurance r the pledge f securities wned by the fiscal agent bank. The market value f the pledged securities plus the federal depsit insurance must at all times equal the amunt n depsit with the fiscal agent. These securities are held in the name f the pledging fiscal agent bank in a hlding r custdial bank that is mutually acceptable t bth parties. At June 30, 27, the municipality has $8,050,952 in depsits (cllected bank balances). These depsits are secured frm risk by $348,523 f federal depsit insurance and $9,223,8 f pledged securities held by the custdial bank in the name f the fiscal agent bank (GASB Categry 3). Even thugh the pledged securities are cnsidered uncllateralized (Categry 3) under the prvisins f GASB Statement 3, R.S. 39:1229 impses a statutry requirement n the custdial bank t advertise and sell the pledged securities within ten days f being ntified by the municipality that the fiscal agent has failed t pay depsited funds upn demand.

40 28 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 NTE 4 - RECEIVABLES The receivables f $1,545,444 at June 30, 27, are as fllws: Class f Receivables Sales and use taxes Accunts ther Allwance fr uncllectibles Ttals $ $ General Fund - 32,074 - (1,703) 30,371 ther Gvernmental Funds $ 201,021 90,271. (71,461) $ 219,831 Enterprise Fund $ 1,3, (5,797) $1,295,242 Ttals $ 201,021 1,422, (78,961) $1,545,444 NTE 5 - DUE FRM THER GVERNMENTS Amunts due frm ther gvernmental units at June 30, 27 cnsisted f the fllwing: River Frnt Due frm General Fund Develpment Fund Enterprise Fund U. S. Treasury State f Luisiana Cncrdia Parish 18,442 5,811 15,603 $ 283,357 $ 2,0 Ttals $ 39,856 $ 283,357 $ 2,0 Ttals $ 18, ,168 15,603 $ 325,213 NTE 6 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS A summary f individual receivables and payables reflected as "Due T r Due Frm ther Funds" fllws: Advances t ther Funds General Fund General Fund Sales Tax Fund Ambulance Fund Industrial Park Fund Industrial Park Fund Enterprise Fund Enterprise Fund Advances frm ther Funds Enterprise Fund Twn Curt Fund River Frnt Develpment Fund Sales Tax Fund River Frnt Develpment Fund Enterprise Fund Industrial Park Fund Hydr Ryalty Fund $ 414,352 7, , , ,862 13, ,0 316,295 $1,709,272

41 TWN F VTDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 29 NTE 6 - INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS - (cntinued) Interfund transfers during the year ended June 30, 27, were as fllws: Transfers In General Fund Industrial Park River Frnt Develpment Fund Enterprise Fund General Fund General Fund River Frnt Develpment Fund Sales Tax Sinking Fund Sales Tax Reserve Fund General Fund General Fund Sales Tax Sinking Fund General Fund Sales Tax Fund General Fund River Frnt Develpment Fund Transfers ut Hydr Ryalty Fund Hydr Ryalty Fund Hydr Ryalty Fund Hydr Ryalty Fund River Frnt Develpment Fund Sales Tax Fund Transfers are primarily used t fund perating expenses. Sales Tax Fund Sales Tax Fund Sales Tax Fund Ambulance Fund Twn Curt Fund Sales Tax Reserve Fund Industrial Park Fund Sales Tax Bnd Cnstructin Fund Enterprise Fund Enterprise Fund $ 825,0 325,0 625,0 750, ,839 2,0 518,394 17,0 3,317 61, , ,089 1,804,677 25,0 $6,537,687 NTE 7 - CAPITAL ASSETS Capital assets and depreciatin activity as f and fr the year ended June 30, 27, is as fllws: Gvernmental activities: Capital assets, nt being depreciated Land Cnstructin in prgress Ttal capital assets, nt being depreciated Beginning Balances 3,926,445 1,277,232 5,203,677 Increases 4,748,452 4,748,452 Decreases (769,339) (769,339) Ending Balances 3,926,445 5,256,345 9,182,790 Capital assets, being depreciated Buildings and structures Imprvements ther than buildings Machinery and equipment Streets and parking areas Ttal capital assets being depreciated 2,209,787 8,294,214 2,391,063 10,187,628 $ 23,082,692 31, ,219 $ 261,592 2,209,787 8,325,587 2,621,282 10,187,628 $ 23,344,284

42 TWN F VIDALIA, LUISIANA 30 NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30, 27 NTE 7 - CAPITAL ASSETS (cntinued) Less accumulated depreciatin fr: Buildings and structures Imprvements ther than buildings Machinery and equipment Streets and parking areas Beginning Balances $ (778,778) (1,102,9) (1,243,897) (3,630,430) Increases $ (43,659) $ (284,988) (183,472) (269,986) Decreases Ending Balances $ (822,437) (1,387,888) (1,427,369) (3,9,416) Ttal accumulated depreciatin (6,756,5) (782,105) (7,538,110) Ttal capital assets being depreciated, net Ttal capital assets, net 16,326,687 21,530,364 (520,513) 4,227,939 (769,339) 15,806,174 24,988,964 Business-type activities: Capital assets, nt being depreciated Land Cnstructin in prgress Ttal capital assets, nt being depreciated 175, , , ,339 (117,237) 769,339 (117,237) 175, , ,928 Capital assets, being depreciated Buildings and structures Imprvements ther than buildings Machinery and equipment Ttal capital assets, being depreciated 171,674 17,150 15,470,965 15,659, , , ,674 17,150 15,985,607 16,174,431 Less accumulated depreciatin fr: Buildings and structures Imprvements ther than buildings Machinery and equipment Ttal accumulated depreciatin (84,627) (17,150) (6,015,615) (6,117,392) (5,228) (359,646) (364,874) (89,855) (17,150) (6,375,261) (6,482,266) Ttal capital assets being depreciated, net Ttal capital assets, net 9,542,397 $ 9,835, ,768 $ 919,107 $ (117,237) 9,692,165 $ 10,637,093 Depreciatin expense f $782,105 fr the functins: year ended June 30, 27, was charged t the fllwing gvernmental General gvernment Public safety Public wrks Ecnmic develpment $ 70,866 98, , ,355 Ttal $ 782,105

43 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 31 NTE 8 - CSTRUCTI CMMITMENTS The municipality has active cnstructin prjects as f June 30, 27. At year end, the cmmitments with cntractrs are as fllws: Spent Remaining t Date Cmmitment Prject Gateway/Welcme Center Prject $ 4,742,894 S 312,508 NTE 9 - LG-TERM BLIGATIS The fllwing is a summary f lng-term bligatin transactins fr the year ended June 30, 27: Lng-term bligatins payable at June 30, 26 Bnds issued Bnds refunded Principal retired Lng-term bligatins payable at June 30, Series $ 2,565,0 - - (155,0) General Lng-Term Debt Sales Tax Bnds 20 Series 27 Series $ 2,865,0 - (2,265,0) (135,0) $ 175,0 2,265,0 (10,0) Ttals $ 5,430,0 175,0 - (3,0; $ 2,410,0 $ 465,0 $ 2,430,0 S 5,305,0 The fllwing is a summary f the current (due in ne year r less) and the lng-term (due in mre than ne year) prtins f lng-term bligatins as f June 30, 27: Bnded Debt Current-prtin $ 330,0 Lng-term prtin 4,975,0 Ttal 5,305,0 Sales Tax Bnd Series 1999 dated December 1, 1999, in the amunt f $3,310,0 Principal installments are payable n December 1 f each year beginning December 1, 20 and ending December 1, 2017 with interest rates ranging frm 4.% t 5.45% per annum and principal payments ranging frm $105,0 t $285,0. Financing fr these bnds is t be prvided frm sales tax revenues. $ 2,410,0 Sales Tax Bnd Series 20 dated June 1, 20, in the amunt f $3,535,0 Principal installments are payable n June 1 f each year beginning June 1, 21 and ending June 1, 2010, with interest rates ranging frm 5.3% t 5.4% per annum and principal payments ranging frm $145,0 t $165,0. Financing fr these bnds is t be prvided frm sales tax revenues. $ 465,0

44 TWN F VIDALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30,27 32 NTE 9 - LG-TERM BLIGATIS (cntinued) Bnded Debt Sales Tax Bnd Series 27 dated January 9, 27, in the amunt f $2,440,0 Principal installments are payable n June 1 f each year beginning June 1, 27 and ending June 1, 2020, with interet rates ranging frm 3.55% t 4.1% per annum and principal payments ranging frm $10,0 t $280,0. Financing fr these bnds is t be prvided frm sales tax revenues. $ 2,430,0 $ 5,305,0 At June 30, 27, the municipality has accumulated $825,236 in the debt service funds fr future debt requirements. The bnds are due as fllws: Principal Interest Payments Payments Ttal Year ending June 30, 28 $ 330,0 $ 237,080 $ 567, ,0 223, , ,0 203, , ,0 184,4 574, ,0 169, , ,355,0 545,057 2,9, ,095,0 74,474 1,169,474 Ttal $ 5,305,0 $ 1,637,722 $ 6,942,722 The municipality is legally restricted frm incurring lng-term bnded debt secured by sales and use taxes in excess f 75% f the avails f the tax. The municipality was within this 75% limitatin when the sales tax bnds were issued. Advance Refunding - n January 9, 27, the Twn f Vidalia issued $2,440,0 in sales tax refunding bnds with an average interest rate f 3.93% t advance refund f $2,265,0 f the 20 series sales tax bnds. The Twn f Vidalia had utstanding balance f $2,865,0 at the time f refunding, but nly $2,265,0 f the bnd was refunded, leaving a remaining principal balance f $6,0, f which $135,0 was redeemed during year ended June 30, 27. The Twn f Vidalia advance refunded the abve bnds t reduce its ttal debt service payments ver the next 17 years by almst $192,458 and t btain an ecnmic gain (difference between the present values f the debt service payments n the ld and new debt) f $145,972. NTE 10 - SALES AND USE TAX REVENUES A. n July 17, 1999, a special electin was held at which the citizens f Vidalia apprved tw individual prpsitins cncerning (1) the levy and use f an additinal 1% sales tax, and (2) the use f the existing 1% sales tax, which was apprved in 1970.

45 TWN F VrALIA, LUISIANA NTES T THE FINANCIAL STATEMENTS FR THE YEAR ENDED JUNE 30, NTE 10 - SALES AND USE TAX REVENUES - cntinued Generally, the prpsitins authrized the impsitin f a new 1% sales tax fr 18 years and dedicated the prceeds f bth the new and existing sales tax fr the acquisitin, cnstructin, extending, imprving, maintaining, and/r perating public streets, drainage facilities, waterwrks system facilities and imprvements, and sewerage system facilities and imprvements, and authrized the City t fund the prceeds f bth sales taxes int bnds fr any capital purpse set frth abve. B. Prceeds f an additinal.5% sales and use tax are dedicated t prviding the Cmmunity with ambulance service. NTE 11 - RETIREMENT SYSTEMS Substantially all emplyees f the Twn f Vidalia, Luisiana, are members f the fllwing statewide retirement systems: Municipal Emplyees Retirement System f Luisiana, Municipal Plice Emplyees Retirement System f Luisiana, r Firefighters' Retirement System f Luisiana. These systems are cst-sharing, multiple-emplyer defined benefit pensin plans administered by separate bards f trustees. Pertinent infrmatin relative t each plan fllws: A. Municipal Emplyees Retirement System f Luisiana (System) Plan Descriptin. The System is cmpsed f tw distinct plans, Plan A and Plan B, with separate assets and benefit prvisins. All emplyees f the municipality are members f Plan B. All permanent emplyees wrking at least 35 hurs per week wh are nt cvered by anther pensin plan and are paid whlly r in part frm municipal funds, and all elected municipal fficials are eligible t participate in the System. Under Plan B, emplyees wh retire at r after age 60 with at least 10 years f creditable service at r after age 55 with at least 30 years f creditable service are entitled t a retirement benefit, payable mnthly fr life, equal t 2% f their finalaverage mnthly salary in excess f $1 fr each year f creditable service. Furthermre, emplyees with at least 10 years f creditable service, but less than 30 years, may take early retirement benefits cmmencing at r after age 60, with the basic benefit reduced 3% fr each year retirement precedes age 62, unless they have at least 30 years f creditable service. In any case, mnthly retirement benefits paid under Plan B cannt exceed 1% f final-average salary. Finalaverage salary is the emplyee's average salary ver the 36 cnsecutive r jined mnths that prduce the highest average. Emplyees wh terminate with at least the amunt f creditable service stated abve, and d nt withdraw their emplyee cntributins, may retire at the ages specified abve and receive the benefit accrued t their date f terminatin. The System als prvides death and disability benefits. Benefits are established r amended by state statute. The System issues an annual publicly available financial reprt that includes financial statements and required supplementary infrmatin fr the System. That reprt may be btained by writing t the Municipal Emplyees Retirement System f Luisiana, 7937 ffice Park Bulevard, Batn Ruge, Luisiana 70809, r by calling (225) Funding Plicy. Under Plan B, members are required by state statute t cntribute 5.0% f their annual cvered salary, and the Twn f Vidalia, Luisiana is required t cntribute at an actuarially determined rate. The current rate is 9.% f annual cvered payrll. Cntributins t the System als include ne-furth f 1% (except rleans and East Batn Ruge Parishes) f the taxes shwn t be cllectible by the tax rlls f each parish. These tax dllars are divided between Plan A and Plan B based prprtinately n the salaries f the active members f each plan. The cntributin requirements f plan members and the Twn f Vidalia, Luisiana are established and may be amended by state statute. As prvided by R.S. 11:103, the emplyer cntributins are determined by actuarial valuatin and are subject t change each year based n the results f the valuatin fr the prir fiscal year. The Twn f Vidalia, Luisiana's cntributins t the System under Plan B fr the years ending June 30, 26 and June 30, 27, were $156,390 and $178,406, respectively, equal t the required cntributins fr thse years.