Comprehensive
Annual Financial Report
As
of and for the Year Ended
TABLE
OF CONTENTS
Pages
Title Page...................................................................................................................................... i
Table of Contents....................................................................................................................... ii-vii
INTRODUCTORY SECTION
Letter of Transmittal.................................................................................................................. 1
- 3
Town of Cary Mission Statement.................................................................................................... 4
Certificate of Achievement for
Excellence
in Financial Reporting................................................................................................................. 5
Principal Officials:
Members of Town Council........................................................................................................... 6
Appointed and Administrative
Staff............................................................................................... 7
Town Boards and Commissions................................................................................................... 8
Area Map and History of the
Town of Cary....................................................................................... 9
Statement of Values.................................................................................................................... 10
Responsibilities of Town
Government...................................................................................... 11
- 15
Organizational Chart.................................................................................................................... 16
FINANCIAL SECTION
Independent Auditors' Report.................................................................................................. 17
- 19
Management’s Discussion and
Analysis................................................................................. 21
- 32
Exhibit
Entity-Wide Financial Statements
A Statement of Net Assets.............................................................................................................. 33
B Statement of Activities........................................................................................................... 34
- 35
Pages
Exhibit
Governmental Fund Financial
Statements
C Balance Sheet - Governmental
Funds..................................................................................... 38
- 39
Reconciliation of the Balance
Sheet of Governmental
D Funds
to the Statement of Net Assets ...................................................................................... 40
Statement of Revenues,
Expenditures, and Changes
E in
Fund Balances - Governmental Funds.............................................................................. 42
- 43
Reconciliation of the
Statement of Revenues,
Expenditures,
and Changes in Fund Balances of
F Governmental
Funds to the Statement of Activities...................................................................... 44
G General
Fund - Budgetary Comparison Statement.................................................................... 45
- 52
Amphitheatre Special Revenue Fund -
H Budgetary Comparison Statement.............................................................................................. 53
Transit Special Revenue Fund -
I Budgetary
Comparison Statement.............................................................................................. 54
J
Budgetary Comparison Statement.............................................................................................. 55
K Budgetary Comparison Statement.............................................................................................. 56
Proprietary Fund Financial
Statements
L Statement of Net Assets - Proprietary
Funds........................................................................... 58
- 59
Statement of Revenues,
Expenses, and Changes
M in Fund Net Assets - Proprietary Funds...................................................................................... 60
N Statement of Cash Flows - Proprietary Funds.......................................................................... 61
- 62
Fiduciary Fund Financial
Statements
Statement of Fiduciary Net
Assets - Fiduciary Funds -
O Pension
Trust Fund - Law Enforcement Separation Allowance...................................................... 63
Statement of Changes in
Fiduciary Net Assets -
Fiduciary Funds - Pension Trust Fund -
P Law
Enforcement Separation Allowance..................................................................................... 64
Notes to the Basic Financial Statements............................................................................ 65
- 94
Law Enforcement Officers' Separation Allowance
Required Supplemental Information...................................................................................... 95
- 97
Pages
SUPPLEMENTARY INFORMATION
Schedule
Capital Project Fund:
1 Capital
Project Fund - Sub-Fund Combining Balance Sheet................................................... 100
- 101
Sub-Fund Combining Schedule of Revenues, Expenditures,
2 and
Changes in Fund Balances....................................................................................... 102
- 103
Schedule of Revenues, Expenditures, and Changes
3 in
Fund Balance - Budget and Actual............................................................................... 104
- 106
Parks and Recreation Project Sub-Fund
-
Schedule of Revenues, Expenditures, and Changes
4 in
Fund Balance - Budget and Actual............................................................................... 107
- 109
Schedule of Revenues, Expenditures, and Changes
5 in
Fund Balance - Budget and Actual ....................................................................................... 110
General Governmental Project Sub-Fund -
Schedule of Revenues, Expenditures, and Changes
6 in
Fund Balance - Budget and Actual............................................................................... 111
- 112
General Capital Reserve Sub-Fund
-
Schedule of Revenues, Expenditures, and
7 Changes
in Fund Balance - Budget and Actual.......................................................................... 113
Utility System
Utility Systems Enterprise
Fund -
8 Sub-Fund
Combining Statement of Net Assets.................................................................. 116
- 117
Utility Systems Enterprise
Fund -
Sub-Fund Combining Statement of
Revenues, Expenses,
9 and Changes in Fund Net Assets..................................................................................... 118
- 119
Utility System Operations Sub-Fund - Schedule of
Revenues, Expenditures, and Changes in Fund
10 Net
Assets - Budget and Actual (NON-GAAP).................................................................. 120
- 123
Water Project Sub-Fund - Schedule
of Revenues,
Expenditures, and Changes in Fund Net
11 Assets - Budget and Actual (NON-GAAP) ....................................................................... 124
- 126
Sewer Project Sub-Fund - Schedule
of Revenues,
Expenditures, and Changes in Fund Net
12 Assets
- Budget and Actual (NON-GAAP)........................................................................ 127
- 130
Pages
Schedule
Utility System Capital Reserve Sub-Fund - Schedule of
Revenues,
Expenditures, and Changes in Fund Net Assets -
13 Budget
and Actual (NON-GAAP)............................................................................................. 131
Internal Service Funds:
14 Combining
Statement of Net Assets......................................................................................... 134
Combining Statement of Revenues, Expenses,
15 and
Changes in Fund Net Assets............................................................................................. 135
16 Combining
Statement of Cash Flows........................................................................................ 136
Garage Internal Service Fund -
Schedule
of
Revenues, Expenditures, and Changes
17 In
Fund Net Assets - Budget and Actual (NON-GAAP)............................................................... 137
Health Insurance Internal
Service Fund -
Schedule of Revenues, Expenditures, and
18 Changes
in Fund Net Assets - Budget and Actual (NON-GAAP)................................................. 138
Other Fund Schedules:
Pension Trust Fund - Law
Enforcement Officers’ Special
Separation Allowance - Schedule of Revenues,
Expenditures,
and Changes in Fund Balance
19 Budget
and Actual (NON-GAAP).............................................................................................. 139
Community Development Block
Grant Special Revenue Fund
20 Budgetary
Comparison Statement – Multi-year.......................................................................... 141
Table
STATISTICAL SECTION (Unaudited)
1 Net Assets by Component,
Last Four Fiscal Years....................................................................... 147
2 Changes in Net Assets, Last
Four Fiscal Years .................................................................. 148
- 149
3 Fund
Balances, Governmental Funds, Last Ten Fiscal Years...............................................
150 - 151
4 Changes in Fund Balances, Governmental
Funds, Last Four Fiscal Years...................................... 153
5 Governmental
Fund Expenditures by Function, Last Ten Fiscal Years.................................... 154
- 155
6 Governmental Fund Revenues
by Source, Last Ten Fiscal Years........................................... 156
- 157
7 Assessed
Value of Taxable Property, Last Ten Fiscal Years......................................................... 160
8 Property
Tax Rates-Direct and Overlapping Governments, Last Ten Fiscal Years............................. 161
Table
Pages
9 Principal
Property Taxpayers, Nine Years Ago and Current Year............................................ 162
- 163
10 Property
Tax Levies and Collections, Last Ten Fiscal Years.................................................. 164
- 165
11 Ad Valorem Taxes Receivable,
Current Year and Last Nine Fiscal Years........................................ 166
12 Analysis of Current Tax Levy....................................................................................................... 167
13 Ratios of Outstanding Debt
by Type, Last Ten Fiscal Years.................................................. 170
- 171
Ratio of Net General Bonded Debt to Assessed Value
14 and
Bonded Debt per Capita, Last Ten Fiscal Years.......................................................... 172
- 173
15 Computation
of Legal Debt Margin............................................................................................... 174
16 Computation
of Direct and Overlapping Debt................................................................................. 175
17 Bond Coverage Combined
Enterprise System Bonds, Last Ten Fiscal Years.......................... 176 - 177
Ratio of Annual Debt
Service Expenditures for Bonded Debt
18
to Total General Expenditures, Last Ten Fiscal Years............................................................... 178
19 Demographic Statistics, Last
Ten Fiscal Years............................................................................ 180
20 Principal Employers, Nine Years
Ago and Current Year................................................................. 181
21 Commercial Activity, Last
Ten Fiscal Years......................................................................... 182
- 183
22 Employee Position
Authorization by Department, Last Ten Fiscal Years................................ 186 - 187
23 Operating Indicators by
Function/Program, Last Five Fiscal Years......................................... 188
- 189
24 Capital Assets by
Function/Program, Last Five Fiscal Years......................................................... 190
25 Insurance
in Force, July 1, 2004 - June 30, 2005.................................................................. 192
- 193
26 Top Ten
Utility Customers.......................................................................................................... 194
27 Utility
Rate Information, Fiscal Year 2005 Approved Operating Budget Ordinance............................ 195
Pages
COMPLIANCE SECTION
Schedule of Expenditures of Federal and State Awards........................................................ 198
- 200
Notes to Schedule of Expenditures of Federal and State
Awards........................................... 201
- 202
Independent Auditors’ Report
on Internal Control Over Financial
Reporting and on Compliance and Other Matters Based on an
Audit Performed in Accordance with Government Auditing Standards.................................... .203 - 205
Independent Auditors’ Report
on Compliance with Requirements Applicable
to Each Major Federal Program and on Internal Control
Over Compliance in
Accordance with OMB Circular A-133 and the State Single
Audit
Implementation Act..............................................