SILAS SIMMONS TOWN OF VIDALIA, LOUISIANA ANNUAL FINANCIAL STATEMENTS AS OF JUNE 30,2015 AND FOR THE YEAR THEN ENDED WITH INDEPENDENT AUDITOR'S REPORT

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1 ANNUAL FINANCIAL STATEMENTS AS OF JUNE 30,2015 AND FOR THE YEAR THEN ENDED WITH INDEPENDENT AUDITOR'S REPORT SILAS SIMMONS CERTIFIED PUBLIC ACCOUNTANTS and ADVISORS LLP

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3 ^ Aimual Financial Statements As of and for the Year Ended June 30, 2015 With Supplemental Information Schedules TABLE OF CONTENTS Statement Page Independent Auditor's Report 1-2 Required Supplemental Information (Part I) Management's Discussion and Analysis 3-9 Basic Financial Statements Government-Wide Financial Statements: Statement of Net Position Statement of Activities Fund Financial Statements: Governmental Funds: Balance Sheet Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position Statement of Revenues/ Expenditures, and Changes in Fund Balances Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities Proprietary Funds: Statement of Net Position Statement of Revenues, Expenses, and Changes in Net Position Statement of Cash Flows Notes to the Financial Statements- Required Supplementarv Information (Part III Budgetary Comparison Schedule - General Fund Budgetary Comparison Schedule - Special Revenue Fund/Hydro Royalty Fund A B D E G H I Budgetary Comparison Schedule - Sales Tax Fund Notes to the Required Supplementary Information 46 47

4 Annual Financial Statements As of and for the Year Ended June 30^, 2015 With Supplemental Information Schedules TABLE OF CONTENTS Statement Page Schedule of the Town's Proportionate Share of the Net Pension Liability 48 Schedule of the Town's Contributions 49 Other Information Nonmajor Governmental Funds: Combining Balance Sheet 50 Combining Statement of Revenues, Expenditures, and Changes In Fund Balance 51 Schedule of Expenditures of Federal Awards 52 Schedule of Findings and Questioned Costs Schedule of Findings and Questioned Costs 53 Reports on Internal Controls and Compliance Independent Auditor's Report on Internal Control Over Financial Reporting and on Comphance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards Independent Auditor's Report on Comphance for Each Major Program and on Internal Control Over Comphance Required by OMB Circular A Schedule of Findings Current Year Findings, Recommendations, and Corrective Action Plan Status of Prior Audit Findings 61-64

5 SILAS SIMMONS LLP CERTIFIED PUBLIC ACCOUNTANTS ADVISORS 209 N. Commerce Street P.O. Box 1027 Natchez, Mississippi Teiephone: INDEPENDENT AUDITOR^S REPORT Mwvv.sr/assf/nmons.co/n The Honorable Hyram Copeland, Mayor and Members of the Board of Aldermen Town of Vidalia Vidalia/ Louisiana We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Vidalia, Louisiana, as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the Town'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. Auditor's 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 from 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 auditor's 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 auditor considers internal control relevant to the entity'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 entity'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, each major fund, and the aggregate remaining fund information of the Town of Vidalia, Louisiana as of June 30, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter As described in Note 1 to the financial statements, the Qerk has adopted provisions of GASB Statement 68 Accounting and Financial Reporting for Pensions - An Amendment of GASB Statement No. 27. Our opinion is not modified with respect to this matter. Members: American Institute of CPAo, MiootMippi Society of CPAo, Louuiana Society of CPAo

6 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 3 through 9 and the budgetary comparison schedules, the schedule of the Town's proportionate share of the net pension liability, and the schedule of the Town's contributions on pages 44 through 49 be presented to supplement the basic financial statements. Such information, although not a 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 Town of Vidalia, Louisiana's basic financial statements. The introductory section and combining noiunajor fund financial statements, and schedules described in the accompanying table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is also not a required part of the basic financial statements. The combining noiunajor fund financial statements and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate 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 o&er 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 combining noiunajor fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated January 12, 2016, on our consideration of the Town of Vidalia'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. Tlie purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on 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 Town of Vidalia's internal control over financial reporting and compliance. This report is intended for the information of the Mayor, Members of the Board of Aldermen, management of Town of Vidalia, Louisiana, and the Legislative Auditor of the State of Louisiana and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document. / Natchez, Mississippi January 12, 2016

7 REQUIRED SUPPLEMENTARY INFORMATION (Part I)

8 MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2015 The Management of the Town of Vidalia, Louisiana offers readers of the Town of Vidalia, Louisiana's (Town) financial statements this narrative overview and analysis of the financial activities of the Town for the fiscal year ended June 30, This managements discussion and analysis (MD&A) is designed to provide an objective analysis of the Town's financial activities based on currently known facts, decisions, and conditions. It is intended to provide readers with a broad overview of Town finances. It is also intended to provide readers with an analysis of the Town's short-term and long-term activities based on information presented in the financial report and fiscal policies that have been adopted by the Town. Specifically, this section is designed to assist the reader in focusing on significant financial issues, provide an overview of the Town's financial activity, identify changes in the Town's financial position (its ability to address the next and subsequent year challenges), identify any material deviations from the financial plan (the approved budget), and identify individual fund issues or concerns. Overview of the Financial Statements This section is intended to serve as an introduction to the Town's financial statements. The Town's basic financial statements consist of the government-wide financial statements, fund financial statements, and notes to the financial statements. This report also contains other supplementary information, which is in addition to the basic financial statements. Government-Wide Financial Statements Government-wide financial statements are designed to provide readers with a concise "entity-wide" Statement of Net Position and Statement of Activities, which seek to give the user of the financial statements a broad overview of the Town's financial position and results of operations in a manner similar to private sector businesses. The statement of net position presents information on au of the Town's assets and liabilities using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. The difference between the two is 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 Town is improving or weakening. The statement of activities presents information which shows how the government's net position changed during this fiscal year. All changes in net position are reported as soon as the underlying event occurs, regardless of the timing of tlie related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future periods (e.g., uncollected taxes). Each of these reports is broken down between governmental activities and business-type activities. Governmental activities normally are those activities that are supported by taxes, licenses, permits, fines, and intergovernmental revenues, for example, the police and. fire departments. Business-type activities are functions that are intended to support their costs through charges for services or fees such as the gas, elechic, water, and sewer departments.

9 MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2015 Government-Wide Financial Analysis As noted earlier, net position may, over time, serve as a useful indicator of a government's financial position. At tire close of the most recent fiscal year, the Town's assets exceeded its liabilities by $43,235,502 (net position); this represents an increase of $204,477 from last fiscal year and a prior period adjustment of ($4,202,029). The Town's net position is comprised of $27,574,143 from governmental activities and $15,661,359 from business-type activities. The followmg is a condensed statement of the Town of Vidalia's net position as of Jime30,2015 and 2014: Governmental Activities Business-Type Activities Total Assets Current and other assets $ 11,176,644 $ 13,316,356 $ 1,098,477 $ 1,950,262 $ 12,275,121 $ 15,266,618 Capital assets (net) 3Z5S ,685,509 16,004,512 16,786, ,365 47,472,487 Total $ 43,765,497 $ 44,001,865 $ 17,102,989 $ 18,737,240 $ 60,868,486 $ 62,739,105 Deferred outflows of resources $ 1,749,763 $. $ _ $ _ $ 1,749,763 $ _ Liabilities Other liabilities $ 3,225,286 $ 2,395,120 $ 1,401,714 $ 1,247,602 $ 4,627,000 $.3,642,722 Long-term liabilities 13,893,741 11,774,283 39,916 89, ,863,329 Total liabilities $, 17,119,027 $ 14,169,403 $ 1,441,630 $ 1,336,648 $ $ ,051 Deferred inflows of resources $ 822,090 $ _ $ $ _ $ 822,090 $ _ Net Position Invested in capital assets $ 32,588,853 $ 30,685,509 $ 16,004,512 $ 16,786,978 $ 48,593,365 $ 47,472,487 Less related debt ^ (9,278,0471 (81,9001 (125,6401 ( (9, Net of related debt $ 23,444,498 $ 21,407,462 $ 15,922,612 $ 16,661,338 $ 39,367,110 $ 38,068,800 Committed 5,429,401 7,957,363 _ _ 5,429,401 7, Assigned 1,405,027 1,692, ,405,027 1,692,780 Restricted 2,273,232 2,275, ,273,232 2,275,806 Unrestricted (deficit) (4,978,0151 (3.500,9491 ( ,254 ( (2, Total net position $ 27,574,143 $ 29,832,462 $ 15,661,359 $ 17,400,592 $ 43,235,502 $ 47,233,054 Prior period adjustment _ (4.202,0291 (4.202,0291 L } Total net position restated $ ,433 $ $ ? i $ By far, the largest portion of the Town's net position ($39,367,110 or 91%) reflects its investment in capital assets (e.g., land, buildings, machinery and equipment, Town infrastructure, etc.) less any related debt used to acquire those assets thatare still outstanding. The Town uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the Town's capital assets are reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources,.since capital assets themselves cannot be used to liquidate these liabilities.

10 TOWN OF VIDAUA, LOUISIANA MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2015 Government-Wide Financial Analysis (continued) The Town has total outstanding debt of $9,754,145, which was used to finance some of the $48,593,365 capital assets. (For more detailed information on the Town's debt and capital assets, see Pages 28 through 32.) Total liabilities of $18,560,657 are equal to 30% of the total assets. The Town's governmental activities increased net position by $1,943,710. Business-type activities decreased net position by $1,739,233. Governmental Activities The governmental activities of the Town include general government, public safety, public works, economic development, and payment of interest on long-term debt. Revenues and expenditures related to the Town's involvement in the S. A. Murray Hydro Electric Station are also included in governmental activities. In that revenues normally associated with municipal operations, (e.g, sales tax, property tax, franchise fees, license fees, sanitation fees, permits, fines/ and operating grants) are insufficient for the funding of these activities, the Town has relied on transfers of excess revenue from its enterprise funds to cover the cost of all activities other than economic development. In that the enterprise fund generated no excess revenue during the fiscal year just ending, these activities were totally funded from net revenues of the hydro royalty fund. Economic development activities in the majority are funded by capital grants and contributions. The following is a summary of the statement of activities: Governmental Activities Business-Type Activities Total Revenue Program revenue $ 4,657,415 $ 4,530,072 $ 12,053,633 $ 11,919,199 $ 16,711,048 $ 16,449,271 General revenue and transfers 18,042,277 17,083,406 f3, ) f584,203) ,126 16, Total revenue and transfers $ ,692? 21,613,478 $ 8,799,482.$ 11,334,996 $ ,174 $ Expenses General and administrative $ 13,994,561 $ 13,048,250 $ - $ - $ 13,994,561 $ 13,048,250 Public safety 5,011,565 4,472,332-5,011,565 4, Public works 1,041,748 1,973, ,041,748 1,973,389 Economic development 273, , , ,139 Combined utility - - 9,496,539 10,519,495 9,496,539 10,519,495 Convention Center - 1,042, ,330 1,042, Interest on lone-term debt , , O Total.expenses $ 20,755,982 $ 20,165,456 $ 10,538,715 $ ,825 $ $ ,281 Change in net position $ 1,943,710 $ 1,448,022 $. fl,739,233) $ fl08.829) $ 204,477 $ Net position, begiiming $ 29,832,462 $ 28,193,656 $ 17,400,592 $ 16,918,592 $ 47,233,054 $ 45,112,248 Prior period adjustments 14,202,029^ 190, ,829 f4;.2g2,029) 7Si;613 A / Net position, beginning, as restated $ 25,630,433 28, $ 17,400,592 $ 17,509,421 $ 43,031,025 $ 45, Net position, ending $ $ $ 15,661,359 $ $ $ cn

11 MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2015 Business-Type Activities The business-type activities of the Town are those that charge a fee to customers for the services provided. The Town has two business-type activities which are accoimted for as enterprise funds. The Town uses enterprise funds to accoimt for the revenues and expenses related to the provision of gas, electric, water, and sewer services (combined utility fund), and for rental of the Bryant Hammett Conference and Convention Center (Riverfront Development Fimd). The following is a summary of the Utility Fund (business-type activity) of the Town: Fiscal year ended June 30,2014 Fiscal year ended June 30,2015 Increase (decrease) between years Operating Revenues Net of Purchases and Sales Tax Gas Electric Water Sewer Office Total Utilitv $ 822,174 : E 3,375,075 $ 686,180 $ i 561,868 $ - $ 5,445, , ,496,752 $ f fi r i S S Fiscal year ended June 30,2014 Fiscal year ended June 30,2015 Increase (decrease) between years Goeratinff Exoenses Gas Electric Water Sewer Office Total Utilitv $ 311,080 ; S 1,794,072 $ 949,209 $ 471,622 $ 674,031 $ 4,200, $ f B $ (92.?m s S ( S Fiscal year ended June 30,2014 Fiscal year ended June 30,2015 Increase (decrease) between years Net Income flossj From Onerations Gas Electric Water Sewer Office Total Utilitv $ 511,094 f P 1,581,003 $ (263,029) $ 90,246 $ (674,031) $ 1,245, f205, f ft < B S fl; n $ $ ON

12 MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30, 2015 Business-Type Activities (continued) The reasons for major fluctuations noted above are as follows: Net income from operations increased $929,004 from $1,245,283 in the previous year to $2,174,287 in the current year. The primary reason for this increase was due to a million-dollar decrease in electricity purchases during the year versus last year while the revenues only decreased by about $100,000. The Town's utility fund generates net revenues used for general fund support. In the past five fiscal years the utility fund has sustained total net losses of $2,163,385. This deficit is increasing because the utility fund is transferring more and more funds each year. Fund'Financial Statements - Governmental Funds The fund financial statements provide more detailed information about the Town's most significant funds - not the Town as a whole. Funds are accounting devices that the Town uses to keep track of specific sources of funding and spending for a particular purpose. The Town maintains four individual governmental fund types. These fund types are general, special revenue, debt service, and capital projects funds. Information is presented separately in the governmental funds balance sheet (Statement C) and in the goverrunental fund statement of revenues, expenditures, and changes in fund balances (Statement E) for the general fund, municipal complex fund, and hydro royalty fund, which are considered to be major funds. Transactions of the remaining governmental funds are combined and shown as other governmental funds on these statements. Individual fund data for each of the nonmajor governmental funds is provided in the form of combining financial statements in the other information portion of this report, beginning on Page 50. It should be noted that, in previous years, the sales tax fund was classified as a nonmajor fund while this year it is classified as a major fund. The Town adopts an annual budget for its governmental funds. A statement of revenues, expenditures, and changes in fund balance for the general fund is presented in the required supplemental information (Part II) which compares actual revenues and expenditures to the original budget and amended budget figures. Budgeted amounts for the remainder of the governmental funds are presented in the individual fund statements. Financial Analysis of the Town's Governmental Funds The Town of Vidalia's governmental funds reported combined ending fund balances of $9,017,137, which is a decrease of $2,507,545. This decrease was primarily caused by an increase in general government expenditures of $991,058 and approximately a 2.2 million increase in principal payments in the hydro fund to pay off the Hydro Revenue Bond Series 2013/2014. Fund Financial Statements - Proprietary Funds The Town maintains two proprietary funds. Proprietary funds are used to report the same functions as business-type activities. The Town uses enterprise funds (the first type of proprietary fund) to account for its combined gas, electric, water, and sewer operations and a second enterprise fund to account for the operations of the Bryant Hammett Conference and Convention Center. These enterprise funds report the same functions presented as business-type activities in the government-wide financial statements.

13 MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2015 Fund Financial Statements - Proprietary Funds (continued) Financial Analysis of the Town's Proprietary Funds The Town's utility operation proprietary fund shows a decrease in ending fund balance of $1,739,233. The 2015 operating incomes of all departments showed increases from prior year except Sewer which showed a decrease of $15,330. The gas department's net income of $671,302 represents a $160,208 increase from fiscal year The electric department generated an operating income of $2,300,406 which represents an increase from fiscal year 2014 of $719,403. The results of operations for fiscal 2015 were driven by decreases in utility purchases. The Town's riverfront development fund's addition to the business-type activities resulted in an increase of fund balance in the amount of $139,314. In that financial statements of enterprise funds are presented on the same basis of accounting as in both the government->vide financial statements and the individual fund statements, au comments and analysis made under business-type activities apply to these funds. Capital Asset and Debt Administration The total investment in net capital assets as of June 30, 2015, is $48,593,365, as compared to $47,472,487 as of the end of the previous fiscal year. At the end of the current fiscal year, the Town had a total outstanding bonded debt of $8,753,646. Principal payments of $546,508 are due during the upcoming fiscal year. These obligations are financed through a 1% sales tax collected within the corporate limits of Vidalia, excess hydro fund, and general surplus revenues. Budgetary Highlights Actual general fund revenues for the year ended June 30, 2015, were over budgeted revenues by $71,511. Actual general fund expenditures were over total budgeted expenditures by $1,161,066, resulting in a negative variance. There was a favorable variance on transfers. The hydro royalty fund and the sales tax fund showed positive variances for total expenditures of $733,162 and $4,274, respectively. Current Financial Factors The Town maintained its gas and electric rates, absorbing all increases in the cost of natural gas and electric as well as increases in operating costs of its combined utility fund over recent fiscal years. The Town restructured the gas and electric rates for large industrial customers to include a "power cost adjustment," as well as a revised energy consumption rate schedule. The utility fund was able to generate net revenues of $2,209,778. $6,546,500 was transferred for the support of general fund activities. Net revenues from the hydro royalty frmd were used for the support of both the utility and general fund activities. During the fiscal year just ended, the hydro royalty fund provided $3,778,127 towards funding the operations of the utility and general funds. In the event that the net revenues of the hydro royalty fund would decrease due to a low water, low production year, utility rates would have to be increased in order to generate revenues necessary to support general and utility fund activities, or services provided to its citizens would have to be cut.

14 MANAGEMENT'S DISCUSSION AND ANALYSIS JUNE 30,2015 Current Financial Factors (contmued) During fiscal year 2015, the Town entered into long term contracts, with the Department of Commerce and Department of Transportation for funding in the amounts of $2,003,400 and $2,155,756 for a technology center and various port access road improvements. These capital outlay amounts are funded in whole or part by federal and state grants with a small percentage to come from the Town. It is expected that approximately $2,797,773 will be spent in capital outlays by fiscal year Requests for Information This financial report is designed to provide a general overview of the Town of Vidalia, Louisiana's finances for all with an interest in the government's operations. Questions concerning any of the information provided in this report or requests for additional information should be addressed to Ashley Anderson, Town Accountant, Post Office Box 2010, Vidalia, Louisiana

15 BASIC FINANCIAL STATEMENTS

16 GOVERNMENT-WIDE FINANCIAL STATEMENTS

17 10 STATEMENT A STATEMENT OF NET POSITION JUNE 30,2015 ASSETS Cash and cash equivalents Receivables (net of allowances for uncouectibles) Internal balances Due from other agencies Due from other governments Restricted assets Capital assets (net) Total assets DEFERRED OUTFLOWS OF RESOURCES LIABILITIES Banh overdraft Accounts, salaries, and other payables Payable from restricted assets Interest payable Accrued liabilities Other liabilities Bonds and capital lease payable, due within one year Bonds and capital lease payable, beyond one year Net pension liability Total liabilities DEFERRED INFLOWS OF RESOURCES NET POSITION Invested in capital assets, net of related debt Committed Assigned Restricted for: Debt service Capital projects Special revenues Unrestricted Total net position Business- Governmental Type Activities Activities Total $ 1,651,476 $ 192,013 $ 1,843, , ,632 1,253, ,213 (434,213) - 4,048,566-4,048,566 53,163-53,163 4,709, ,045 5,076,670 32,588,853 16,004,512 48,593,365 $ 43,765,497 $ 17,102,989 $ 60,868,486 $ 1,749,763,$ $ 1,749,763 $ 18,498 $ $, 18,498 1,501, ,685 2,493, , ,045 28,080-28, , ,349 7,485-7,485 1,037,699 41,984 1,079,683 8,634,546 39,916 8,674,462 5,259,195-5,259,195 $ 17,119,027 $ 1,441,630 $ 18,560,657 $ 822,090 $ $ 822,090 $ 23,444,498 $ 15,922,612 $ 39,367,110 5,429,401-5,429,401 1,405,027-1,405,027 3,022 3,022 30,210-30,210 2,240,000-2,240,000 (4,978,015) (261,253) (5,239,268) $ 27,574,143 $ 15,661,359 $ 43,235,502 The accompanying notes are an integral part of this financial statement.

18 STATEMENT OF ACTIVITIES STATEMENT B Government Activities General government Public safety Public works Economic development Interest on long-term debt Expenses Fees, Fines, and Charges for Services FOR THE YEAR ENDED JUNE 30,2015 Program Revenues Operating Grants and Contributions Capital Grants and Contributions Net (Expenses)/ Revenue Governmental Activities Net (Expenses), Business-Type Activities $ 13,994,561 5,011,565 1,041, , ,358 $ 2,043, , ,470 $ 6,300 95,999 $ 51,958 1,054, ,559 $ (11,892,841) (4,392,263) 595,086 25,809 (434,358) $ (11,892,841) (4,392,263) 595,086 25,809 (434,358) $ $ (11,892,841) (4,392,263) 595,086 25,809 (434,358) Total governmental activities $ 20,755,982 $ 3,149,235 $ 102,299 $ 1,405,881 $ (16,098,567) $ (16,098,567) $ $ (16,098,567) Business-Tvoe Activities Gas Electric Water Sewer $ 1,103,968 6,944, , ,463 $ 1,491,640 8,961, , ,379 $ $ $ 387,672 2,016,776 (305,077) 74,916 $ $ 387,672 2,016,776 (305,077) 74,916 $ 387,672 2,016,776 (305,077) 74,916 Convention Center 1,042, , ,048 (659,369) (659,369) (659,369) Total business-type activities $ 10,538,715 $ 11,808,585 $ $ 245,048 $ 1,514,918 $ $ 1,514,918 $ 1,514,918 Total $ 31,294,697 $ 14,957,820 $ 102,299 $ 1,650,929 $ (14,583,649) $ (16,098,567) $ 1,514,918 $ (14,583,649) Total General Revenue Property taxes Sales taxes Franchise taxes Beer taxes Occupatioi^al licenses Investment earnings Hydro royalties Other general revenues Transfers $ 144,671 2,817,001 25,657 7, ,995 22,560 10,983, ,093 3,254,655 $ (3,254,655) $ 144,671. 2,817,001 25,657 7, ,995 23,064 10,983, ,093 Total general revenues and transfers $ 18,042,277 $ (3,254,151) $ 14,788,126 Change in net position $ 1,943,710 $ (1,739,233) $ 204,477 Net position - begirming Prior period adjustment $ 29,832,462 (4,202,029) $ 17,400,592 $ 47,233,054 (4,202,029) Net position - begirming, as restated $ 25,630,433 $ 17,400,592 $ 43,031,025 Net position - ending $ 27,574,143 $ 15,661,359 $ 43,235,502 The accompanying notes are an integral part of tills financial statement.

19 FUND FINANCIAL STATEMENTS

20 GOVERNMENTAL FUNDS

21 12 STATEMENT C BALANCE SHEET GOVERNMENTAL FUNDS JUNE 30,2015 Major Funds Hydro Other Total General Royalty Sales Tax Governmental Governmental ASSETS Fund Fund Fund Funds Funds Cash i 5 88,525 $ 4,709,625 $ 954,109 $ 608,842 $ 6,361,101 Receivables (net of allowances for uncollectibles) 20,261 1, ,262 76, ,601 Due from otiier agencies 4,828 4,037,298-6,440 4,048,566 Due from other governments 28,120-25,043-53,163 Due from other funds 648, ,413 1,254,736 Total assets f i 790,057 $ 8,748,451 $ 1,160,414 $ 1,298,245 $ 11,997,167 LIABILITIES AND FUND BALANCES Liabilities: Bank overdrafts f S $ $ $ 18,498 $ 18,498 Accounts payable 312,786 1,079, ,411 5,928 1,501,175 Accrued liabilities 567, , ,349 Due to other funds , , ,523 Other liabilities ,485 7,485 Total liabilities f 5 880,580 $ 1,079,050 $ 636,314 $ 384,086 $ 2,980,030 Fund balances: Restricted: Capital projects S 5 $ $ $ 30,210 $ 30,210 Debt service ,022 3,022 Special revenue funds - 2,240, ,240,000 Committed funds, reported in: Special revenue funds - 5,429,401-5,429,401 Assigned, special revenue , ,927 1,405,027 Unassigned, reported in; General fund (90,523), (90,523) Total fund balances 9 J (90,523) $ 7,669,401 $ 524,100 $ 914,159 $ 9,017,137 Total liabilities and fund balances 9 i 790,057 $ 8,748,451 $ 1,160,414 $ 1,298,245 $ 11,997,167 The accompanying notes are an integral part of this financial statement.

22 13 STATEMENT D RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30, 2015 Fund Balances, Total Governmental Funds (Statement C) $ 9,017,137 Amounts reported for governmental activities in the Statement of Net Position are different because: Net capital assets used in governmental activities are not financial resources and, therefore, are not reported in the governmental funds. 32,588,853 Deferred outflows and inflows are not financial resources or currently payable. Deferred outflows $ 1,749,763 Deferred inflows (822,090) 927,673 Long-term liabilities including bonds payable are not due and payable in the ' current period and, therefore, are not reported in the governmental funds. Accrued interest payable $ (28,080) Bonds payable (9,672,245) Net pension liability (5,259,195) (14,959,520) Net Position of Governmental Activities (Statement A) $ 27,574,143 The accompanying notes are an integral part of this financial statement.

23 14 STATEMENT E STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2015 Major Funds Hydro Other Total General Royalty Sales Tax Governmental Governmental Fund Fund Fund Funds Funds REVENUES Taxes: Ad valorem $ 144,671 $ $ $ $ 144,671 Sales and use - - 2,136, ,195 2,817,001 Other taxes, penalties. interest, etc. 25, ,657 Licenses and permits 232, ,870 Intergovernmental revenues: Federal 71, ,572 1,054,364 1,363,701 State 284,282-8,242 95, ,311 Fines and forfeitures 51, , ,986 Charges for services 582,470 2,043,462-97,317 2,723,249 Investment earrungs 85 19,705' 2, ,560 Hydro royalties - 10,983, ,983,770 Issuance of debt 258, , ,805 Other revenues 250, , ,261 Total revenues $ 1,903,511 $ 13,046,937 $ 3,085,334 $ 2,368,060 $ 20,403,842 EXPENDITURES General government $ 2,759,713 $ 8,606,632 $ 2,318,726 $ 645,096 $ 14,330,167 Public safety: Police 2,793, ,793,962 Fire 1,192, ,192,819 Ambulance , ,347 Public works: Streets 998, ,622 Sanitation 442, ,829 Mechanic shop 327, ,560 Capital outlay 258, ,054,364 1,313,169 Debt service: Principle 151,060 2,792, ,511 3,640,489 Interest and fiscal fees 7,871 93, , ,078 Total expenditures $ 8,933,241 $ 11,492,656 $ 2,318,726 $ 3,421,419 $ 26,166,042 Excess of revenues (expenditures) $ (7,029,730) $ 1,554,281 $ 766,608 $ (1,053,359) $ (5,762,200) -continued-

24 15 STATEMENT E STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2015 OTHER FINANCING SOURCES fusesl Transfers - in Transfers - out General Fund $ 7,388,655 (48,181) Major Funds Hydro Royalty Fund $ (4,082,243) $ Sales Tax Fund (1,067,916) Other Governmental Funds $ 1,224,540 (160,200) Total Governmental Funds $ 8,613,195 (5,358,540) Total other financing sources (uses) $ 7,340,474 $ (4,082,243) $ (1,067,916) $ 1,064,340 $ 3,254,655 Net change in fund balance $ 310,744 $ (2,527,962) $ (301,308) $ 10,981 $ (2,507,545) Fund balances - beginning (401,267) 10,197, , ,178 11,524,682 Fund balances - ending $ (90,523) $ 7,669,401 $ 524,100 $ 914,159 $ 9,017,137 Tl\e accompanying notes are an integral part of this financial statement.

25 16 STATEMENT F RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED JUNE 30, 2015 Net Change in Fund Balances, Total Governmental Funds (Statement E) $ (2,507,545) Amoimts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period and the cost of land sales. 1,903,344 The proceeds of long-term debt provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of the principal of long-term debt is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the Statement of Net Position. Issuance of debt (958,805) Principal retired 3,640,489 Net pension expense is reported in governmental funds as expenditures as they are paid; however, in the statement of activities the net position expense is reported according to estimates required by GASB 68. This is the amount that the pension estimate exceeds the pension expenses paid in the current year (129,493) Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. This amount is the net effect of these differences in the treatment of interest paid on debt. (4,280) Change in Net Position of Governmental Activities (Statement B) $ 1,943,710 The accompanying notes are an integral part of this financial statement.

26 PROPRIETARY FUNDS

27 17 STATEMENT G STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2015 ASSETS Current assets; Cash and cash equivalents Receivables (net of allowances for uncollectibles) Due from other funds Utility Fund Business-Type Activites Riverfront Development Fund Total Enterprise Funds $ 122,271 $ 69,742 a ) 192, , , , ,048 Total current assets $ 1,095,903 $ 279,790 a ; 1,375,693 Noncurrent assets Restricted assets: Cash $ 367,045 $ - a ; 367,045 Capital assets (net of accumulated depreciation) 9,748,201 6,256,311 16,004,512 Total noncurrent assets $ 10,115,246 $ 6,256,311 a ; 16,371,557 Total assets $ 11,211,149 $ 6,536,101 5 ; 17,747,250 LIABILITIES Current liabilities Accounts payable $ 688,956 $ 20,779 a ; 709,735 Notes payable - current Accrued liabilities Due to other funds 41, , ,261 77,895 41, , ,261 Total current liabilities $ 1,580,256 $ 98,674 a ; 1,678,930 Current liabilities payable from restricted assets Consumer deposits $ 367,045 $ - 3 ; 367,045 Total current liabilities payable from restricted assets $ 367,045 $ - 3 ; 367,045 Long term liabilities - notes payable $ 39,916 $ - 3 i 39,916 Total liabilities $ 1,987,217 $ 98,674 3 ; 2,085,891 NET POSITION Invested in capital assets, net of related debt Unrestricted $ 9,666,301 (442,369) $ 6,256,311 3 ; 15,922, ,116 (261,253) Total net position $ 9,223,932 $ 6,437,427 3 i 15,661,359 The accompanying notes are an integral part of this financial statement.

28 18 STATEMENTS STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2015 OPERATING REVENUES Charges for services: Gas sales Electricity sales Water sales Sewer charges Rental charges Other services Total operating revenues OPERATING EXPENSES Purchases and sales tax Personal services Materials and supplies Other services and charges Depreciation Total operating expenses Business-Type Activities Riverfront Total Development Enterprise Utility Fund Fund Funds $ 1,491,640 $ $ 1,491,640 8,961,297-8,961, , , , , , , $ 11,670,826 $ 137,759 $ 11,808,585 $ 5,174,074 $ $ 5,174,074 2,155, ,962 2,786, ,860 99, , , , , ,960 99, ,622 $ 9,496,539 $ 1,042,176 $ 10,538,715 Operating income (loss) Nonoperating income Intergovernmental State/Federal Interest earnings Total nonoperating income Income (loss) before transfers OPERATING TRANSFERS AND CONTRIBUTIONS Transfers - in Transfers - out Change in net position Total net position - beginning Total net position - ending $ 2,174,287 $ (904,417) $ 1,269,870 $ 35,000 $ 210,048 $ 245, $ 35,491 $ 210,061 $ 245,552 $ 2,209,778 $ (694,356) $ 1,515,422 3,283, ,670 4,116,845 (7,371,500) - (7,371,500) $ (1,878,547) $ 139,314 $ (1,739,233) 11,102,479 6,298,113 17,400,592 $ 9,223,932 $ 6,437,427 $ 15,661,359 The accompanying notes are an integral part of this financial statement.

29 19 STATEMENT I STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30, 2015 Cash flows from operating activities Receipts from customers and users Payments to suppliers Payments to employees Net cash provided by (used for) operating activities Utility Fund $ 12,115,426 (6,422,234) (2,106,062) $ 3,587,130 Business-Type Activities Riverfront Development Fund Total Enterprise Funds $ -137,759 J e 12,253,185 (298,369) (603,610) (6,720,603) (2,709,672) $ (764,220) J e 2,822,910 Cash flows from noncapital financing activities Net change in amoimts due from/to other funds Transfers from other funds Transfers to other funds Grant proceeds $ 600,446 3,283,175 (7,371,500) 35,000 $ (210,048) J e 390, , ,048 4,116,845 (7,371,500) 245,048 Net cash provided by (used for) noncapital financing activities $ (3,452,879) $ 833,670 i 5 (2,619,209) Cash flows from capital and related financing activities Note payments Purchases of fixed assets $ (43,740) (214,156) $ - f P (43,740) (214,156) Net cash used for capital and related financing activities $ (257,896) $ - J E (257,896) Cash flows from investing activities Interest on temporary investments $ 491.$ 13 J E 504 Net cash provided by investing activities $ 491 $ 13 E E 504 Net increase (decrease) in cash and cash equivalents $ (123,154) $ 69,463 E B (53,691) Cash and cash equivalents, beginning of year 612, ,749 Cash and cash equivalents, end of year $ 489,316 $ 69,742 E E 559,058 Reconciliation of operating income (loss) to net cash provided by (used for) operating activities Operating income (loss) $ 2,174,287 $ (904,417) E E 1,269,870 Adjustments to reconcile operating income (loss) to net cash provided by (used for) operating activities Depreciation, Change in assets and liabilities Increase in accounts receivable Increase in accounts payable Increase in accrued liabilities $ 896,960 $ 99,662 a E 996, ,474 21,874 86,535 13,183 27, ,474 35, ,887 Total adjustments $ 1,412,843 $ 140,197 a E 1,553,040 Net cash provided by (used for) operating activities $ 3,587,130 $.(764,220) a E 2,822,910 The accompanying notes are an Integral part of this financial statement.

30 NOTES TO THE FINANCIAL STATEMENTS

31 20 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Town of Vidalia was incorporated April 1, 1901, under the provisions of the Lawrason Act. The Town operates under the Mayor-Board of Aldermen form of government and provides the following services as authorized by the Lawrason Act: public safety (police, fire, and ambulance); streets; sanitation; health; culturerecreation; public improvements; planning and zoning; provision of gas, electric, and water utilities; sewer services; and general administrative services. The accounting and reporting policies of the Town of Vidalia conform to generally accepted accounting principles as applicable to governments in the United States of America. The following is a summary of certain significant accounting policies: A. Financial Reporting Entity This report includes all funds and account groups which are controlled by or dependent on the Town executive and legislative branches (the Mayor and Board of Aldermen). The scope of the governmental entity included in this report was determined by applying the criteria established by the Governmental Accounting Standards Board's Statement Number 14. The application of these criteria revealed no additional governmental reporting entities, which would be properly included in these financial statements. The Town Marshall's balances and transactions are accounted for in the Town Court Fund. B. Basis of Presentation Govemment-Wide and Fund Financial Statements The government-wide financial statements (i.e., tlie statement of net position and the statement of activities) report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program reveriues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are provided for governmental funds and proprietary funds. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements.

32 21 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED JUNE 30,2015 NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) C. Measurement Focus, Basis of Accounting, and Financial Statement Presentation The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the proprietary fund 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 revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. 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 government 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. Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. All other revenue items are considered to be measurable and available only when cash is received by the government. The municipality reports the following major governmental funds: The General Fund is the municipality's primary operating fund. It accoimts for all financial resources of the general government, except those required to be accounted for in another fund. The Hydro Royalty Fund is used to accoimt for the revenues and expenses of the Town's participation in the hydroelectric project. The Sales Tax Fund is used to account for the collection and expenditure of sales tax revenues as provided by ordinance. The municipality reports the following major proprietary funds: The Utility Fund is used to account for the provision of gas, electric, and water utilities, as well as sewer services to residents of the Town and some residents of the Parish. All activities necessary to provide such services are accounted for in this fund, including, but not limited to, administration, operations, maintenance, financing, and related debt service and billing and collection! The Riverfront Development Fund is used to account for the collection and expenditure of revenues earned from the rental of the Town's conference and convention center. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both the government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities and enterprise funds, subject to this same limitation. The government has elected not to follow subsequent private-sector guidance.