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Home My WebLink About11-3488¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ i I j, 3ggs Cis' F E F-C 0 F !.a ?011 11,^"l. - 5 f' 11 1 1: C5 C'U'ih FRA4i0 C 0 1 J N T Y I'LN 1aYLVAN1A Borough of Lemoyne Financial Report and Supplemental Information December 31, 2010 C?,u?o2,gg9 ? a573?a Borough of Lemoyne Financial Report and Supplemental Information December 31, 2010 Contents Page INDEPENDENT AUDITORS' REPORT ON THE FINANCIAL STATEMENTS 1 and 2 BASIC FINANCIAL STATEMENTS Balance Sheet 3 Statement of Revenues and Expenditures 4 to 10 Notes to Financial Statements 11 to 24 Schedules of Funding Progress 25 INDEPENDENT AUDITORS' REPORT ON THE SUPPLEMENTARY INFORMATION 26 SUPPLEMENTARY INFORMATION Debt Statement 27 Statement of Capital Expenditures and Employee Compensation 28 Schedules of Revenues - Modified Cash Basis - General Fund 29 Schedules of Expenditures - Modified Cash Basis - General Fund 30 to 32 Statement of Revenues and Expenses - Modified Cash Basis - Budget and Actual - General Fund 33 Schedules of Revenues - Modified Cash Basis - Sewer Revenue Fund 34 Schedules of Expenses - Modified Cash Basis - Sewer Revenue Fund 35 Statement of Revenues and Expenses - Modified Cash Basis - Budget and Actual - Sewer Revenue Fund 36 Schedules of Real Estate Taxes - General Fund 37 Statements of Revenues, Expenditures, and Changes in Fund Balances - Modified Cash Basis - Governmental Funds - Years Ended December 31, 2001 through 2010 38 Schedule of Statistical Information - Years Ended December 31, 2001 through 2010 39 ¦ ¦ ¦ rki ¦ REINSEL KUNTZ LESHER certified public accountants & consultants ¦ Independent Auditors' Report on the Financial Statements ¦ To the Borough Council Borough of Lemoyne Cumberland County, Pennsylvania ¦ ¦ We have audited the accompanying financial statements of the Borough of Lemoyne, Cumberland ¦ County, Pennsylvania, as of and for the year ended December 31, 2010, as listed in the table of contents. These financial statements are the responsibility of the Borough of Lemoyne's management. ¦ Our responsibility is to express an opinion 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. ¦ The financial statements referred to above include only the primary government of the Borough of Lemoyne, which consists of all funds, organizations, institutions, agencies, departments, and offices that comprise the Borough of Lemoyne's legal entity. The financial statements do not include financial ¦ data for the Borough of Lemoyne's legally separate component unit, which accounting principles generally accepted in the United States of America require to be reported with the financial data of the ¦ Borough of Lemoyne's primary government unless the Borough of Lemoyne also issues financial statements for the reporting entity that include the financial data for its component unit. The Borough of Lemoyne has not issued such reporting entity financial statements. As discussed in Note 1, the Borough of Lemoyne prepares its financial statements on a basis of . accounting and presentation, which differs from accounting principles generally accepted in the United States of America. Specifically, the Borough of Lemoyne records assets, liabilities, revenues, and expenditures on a variation of the cash basis of accounting, and the financial statement presentation does not meet the requirements of the Governmental Accounting Standards Board (GASB), Governmental Accounting and Financial Reporting Standards Section 1100 Summary Statement Principles. ¦ ¦ ¦ 1800 Fruitville Pike, P.O. Box 8408 Lancaster, PA 17604 main: 717394.5666 fax: 717.394.0693 www.RKLcpa.com ¦ In our opinion, because the Borough of Lemoyne did not adopt the reporting standards described above, and because the financial statements report assets, liabilities, revenues, and expenditures on a basis of accounting that differs from accounting principles generally accepted in the United States of America, and the financial statements do not include the financial data of the component units of the Borough of Lemoyne, the financial statements referred to above do not purport to, and do not, present fairly, in conformity with accounting principles generally accepted in the United States of America, the i financial position of the Borough of Lemoyne as of December 31, 2010, or the changes in financial position or cash flows thereof for the year then ended. The required supplementary information on page 25 is not a required part of the basic financial statements, but is supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the required supplementary information. However, we did not audit the information and express no opinion on it. March 29, 2011 2 Balance Sheet December 31, 2010 Governmental Funds Assets and Other Debits Genwal F± 1W F to Debt service 100-120 Cash and Investments $ 856,946 $ 248,828 $ 643,178 $ - 140-144 Tax Receivable - - - _ 121-129 145-149 Account Receivable (excluding taxes - - - 130 Due From Other Funds 3,980 - - - 131-139 Other Current Assets - - - - 160-169 1 Fixed Assets 1180-189 Other Debits - - - Total Assets and Other Debits - $ 860,926 $ 248,828 $ 643,178 $ - Liabilities and Other Credits 11 210-229 Payroll Taxes and Other Payroll Withholdings $ - $ - $ - $ - 200-209 231-239 All Other Current Liabilities - - - - 230 Due To Other Funds 49,220 3,980 $ - - 60-269 Long- erm Liabilities - - - - 240-259 Current ortion o Long-Term Debt ter Credits - - Total L iabilities and Other Credits = $ 49,220 $ 3,980 $ - $ - 11 Fund and Account Group Equity 11 81-284 Contributed Capital $ - $ - $ - $ - 290 Investment in General Fixed Assets - - - - 70-289 Fund Balance/Retained Earnings on 12131 811,706 244,848 643,178 - 291-299 Other E u' - - - - Total Fund and Account Group Equity - $ 811,706 $ 244,848 $ 643,178 $ - See accompanying notes. 3 r M Pro rieta Funds Fiduciary Funds Account Groups Total Enterprise Internal Service Trust and Agency General Fixed Assets General Long-Term Debt Memorandum Only $ 1,225,791 $ - $ 1,369,893 $ $ - $ 4,344,636 48,257 - 963 - - 53,200 Is 1,2741048 $ - $ 1,370,856 $ - $ - $ 4,397,836 TOTAL ASSETS AND OTHER DEBITS $ 4,397,836 11 - - 150,650 - - 150,650 _ - - 53,200 $ - $ - $ 150,650 $ - $ - $ 203,850 11 TOTAL LIABILITIES AND OTHER CREDITS $ 203,85011 1,274,048 - 1,220,206 - - 4,193,986 ,Is 1,274,048 $ - $ 1,220,206 $ - $ - $ 4,193,986 11 TOTAL LIABILITIES AND FUND AND ACCOUNT GROUP EQUITY $ 4,397,836 Statement of Revenues and Expenditures December 31, 2010 REVENUES Governmental Funds Taxes General Fund Special Revenue (including State Liquid Fuels) capital Projects Debt Service 301.00 Real Estate Taxes $ 1,036,671 $ - $ - $ - 305.00 Occupation Taxes levied under municipal code) - 308.00 Residence Taxes (levied by cities of the 3rd Class) 309.00 Regional Asset District Sales Tax (Allegheny county municipalities only) _ 310.00 Per Capita Taxes 12,155 - - - 310.10 Real Estate Transfer Taxes 73,173 - - - 310.20 Earned Income Taxes/Wage Taxes 473,113 - - - 310.30 Business Gross Receipts Taxes - 310.40 Occupation Taxes (levied under Act 511) 7,925 - - - 310.50 Local Services Tax** 199,483 - - - 310.60 Amusement/Admission Taxes - 310.70 Mechanical Device Taxes 310.90 Other Local Tax Enabling Act/Act511 /Taxes - - - - Total Taxes =' $ 1,802,520 11 $ - $ - $ - Total Licenses and Permits Fines and Forfeits 30-332 Fines and Forfeits Total Fines and Forfeits lip - I - _ t _ ** This tax was known as the Occupational Privilege Tax (OPT) prior to 2005 and the Emergency and Municipal Services Tax prior to 2008 See accompanying notes. 4 r r r ¦ r r ¦ r r ¦ ¦ ¦ ¦ r ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ r r' r ¦ ¦ ¦ ¦ ¦ ¦ ¦ Proprietary Funds Fiduciary Fund Type Total Enterprise Internal Service Trust and Agency Memorandum Only $ 1,036,671 12,155 73,173 473,113 7,925 - 199,483 ,is $ 1,802,520 $ _ $ - $ - $ 78,278 $ _ $ - $ - $ 78,278 Is _ is - Is - $ 4,572 Is _ $ _ $ - $ 4,572 $ 10,568 $ - $ 128,664 $ 158,303 59,656 $ 10,568 $ - $ 128,664 $ 217,959 Statement of Revenues and Expenditures December 31, 2010 Intergovernmental Revenues Governmental Funds Federal General Fund special Revenue (Including State Liquid Fuels) Capital Projects Debt Service 351.03 Highways and Streets $ - $ - $ - $ - 351.09 Community Development - - - _ 351.00 All Other Federal Capital and Operating Grants - - - - 352.01 National Forest - - - - 352.00 All Other Federal Shared Revenue and Entitlements - - - - 353.00 Federal Payments in Lieu of Taxes - - - - Total Federal $ - $ - $ _ $ _ State 1 1 354.03 Highway and Streets $ - $ - $ - $ - 354.09 Community Development 13,135 - - - 354.15 Recycling/Act 101 - - - - 354.00 All Other State Capital and Operating Grants - - 120,000 - 355.01 Public Utility Realty Tax PURTA 2,547 - - - 355.02- 355.03 Motor Vehicle Fuel Tax (Liquid Fuels Tax) and State Road Turnback - 91,301 - - 355.04 Alcoholic Beverage Licenses - - - - 355.05 General Municipal Pension System State Aid 94,134 - - - 55.07 Foreign Fire Insurance Tax Distribution 38,227 - - - 355.08 Local Share Assessment/Gamin Proceeds - - - - 355.00 All Other State Shared Revenues and Entitlements - - - - 356.00 State Pa eats in Lieu of Taxes i - - - - Total S tate = s 148,043 $ 91,301 $ 120,000 $ - 11 Local Government Units 11 357.03 Highways and Streets $ - $ - $ - $ - 357.00 All Other Local Governmental Units Capital and Operating Grants 2,094 - - - 358.00 Local Government Unit Shared Payments for Contracted Intergovernmental Services 6,125 - - - 35 !d Local Governmental Units an Authorities ayments in Lieu of Taxes - - - - Total Local Government Units =' $ 8,219 $ - $ - $ - See accompanying notes. 5 S Proprietary Funds Fiduciary Fund Type Total Enterprise Internal Service Trust and Agency Memorandum Only $ $ - $ $ 13,135 120,000 2,547 91,301 94,134 38,227 ,Is $ - $ 359,344 $ - $ - $ $ _ - - - 2,094 - - - 6,125 $ - $ - $ - is 8,219 TOTAL INTERGOVERNMENTAL REVENUES $ 367,56311 Statement of Revenues and Expenditures December 31, 2010 REVENUES Governmental Funds Charges for Service General Fund Special Revenue (Including State Liquid Fuels) Capital Projects Debt Service 361.00 General Government $ 7,095 $ - $ - $ - 362.00 Public Safe 29,610 - - - 363.20 Parkin - - - - 363.00 All Other Charges for Highway & Streets Services 20,338 - - - 364.10 Wastewater/Sewage Charges - - - - 364.30 Solid Waste Collection & Disposal Charge trash 313,976 - - - 364.60 Host Municipality Benefit Fee for Solid Waste Facility - - - 364.00 All Other Charges for Sanitation Services - - - - 365.00 Health - - - - 366.00 Human Services - - - - 367.00 Culture and Recreation 9,275 - - - 368.00 Airports - - - - 369.00 Bars - - - - 370.00 Cemeteries - - - - 372.00 Electric System - - - - 373.00 Gas System - - - - 374.00 Housing System - - - - 375.00 Markets - - - - 377.00 Transit Systems - - - - 378.00 Water System - J - - - 379.00 All Other Char es for Service - - - h - Total C harges for Service = $ 380,294 $ - $ - $ - Unclasslfied Onera#ina Revenues 383.00 Special Assessments $ - $ - $ - $ - 386.00 - - Escheats sale of personal property) - 387.00 Contributions & Donations from Private Sectors - 19,308 - - 388.00 Fiduciary Fund Pension Contributions - - - - 389.00 All Other Unclassified O ratin Revenues*** 1,419 - - - Total U nclassified Operating Revenues -• $ 1,419 $ 19,308 $ - $ - Other Financing Sources 11 391.00 Proceeds of General Fixed Asset Disposition $ - $ - $ - $ - 392.00 Interfund Operating Transfers** - 326,266 28,832 - 393.00 Proceeds of General Long-Term Debt - - - - 394.00 Proceeds of Short-Term Debt - - - - 395.00 - - - - Refunds of Prior Year Egenditures Total 0 0w lancing Sources -' - $ 326,266 28,832 $ - 0 TOTAL REVENUES 11 -J 1$ 2,491,170 J$ 441,755 R$ 154,854 1$ - 11 ** he tote amount o"ne 392.00 must match the total of line 492.00 *** This amount cannot be greater than 1 % of the total revenue within the same fund. See accompanying notes. 6 M Proprietary Funds Fiduciary Fund Type Total Enterprise internal Service Trust and Agency Memorandum Only 7,095 29,610 • _ _ - 20,338 313,976 1,726,586 - - 1,726,586 84,088 - - 93,363 . $ 1,810,674 $ - $ - $ 2,190,968 - 19,308 77,494 77,494 - 1,419 $ _ $ - $ 77,494 $ 98,221 $ 25,000 - - 380,098 $ 25,000 $ - $ - $ 380,098 ¦ $ 1,846,242 $ - $ 206,158 $ 5,140,179 Statement of Revenues and Expenditures December 31, 2010 EXPENDITURES Governmental Funds General Government General Fund Special Revenue (including State Liquid Fuels) Capital Projects Debt Service 400.00 Legislative (Governing) Body $ 2,025 $ - $ - $ - 401.00 Executive (Manager or Mayor) 158,966 - - - 402.00 Auditing Services/Financial Administration 13,542 - - - 403.00 Tax Collection 9,300 - - - 404.00 Solicitor/Le al Services 36,683 - - - 405.00 Secrets /Clerk - - - - 406.00 Other General Government Administration - - - 4 IT-Networking Services - Data Processing - - - - En inesrin Services 7,267 - - - General Government Buildings and Plant 62,467 - 595,815 - Total G eneral Government = $ 290,250 $ - 1 1$ 595,815 $ - Public Safety 410.00 Police $ 898,267 $ - $ - $ - 411.00 Fire 186,695 - - - 412.00 Ambulance/Rescue 10,000 - - - 413.00 UCC and Code Enforcement 3,195 - - - 414.00 Planning and Zoning 3,880 - - - 415.00 Emergency Management & Communications - - - - 416.00 Militia and Armories - - - - 417.00 Examination of Licensed Occupations - - - - 418.00 Public Scales (weights and measures - - - - 419.00 Other Public Safe 13,938 - - - Total Public Safety -' $ 1,115,975 $ - $ - 1 - 1$ Health and Human Services 420.00- 425.00 Health and Human Services $ 3,332 $ - $ - $ - 11 11 Public Works - Sanitation 11 426.00 Recycling Collection and Disposal $ - $ - $ - $ - 427.00 Solid Waste Collection and Disposal trash 307,003 - - - 428.00 Weed Control - - - - 429.00 Wastewater/Sewa a Collection and Treatment - - - - Total Public Works - Sanitation $ 307,003 $ - - $ - See accompanying notes. 7 s Proprietary Funds Fiduciary Fund Type Total Enterprise Internal Service Trust and Agency Memorandum Only $ _ $ _ $ - $ 2,025 158,966 13,542 9,300 2,219 - - 38,902 7,267 658,282 ,Is 2,219 $ - 1 1s - 1 1s 888,284 $ - $ 898,267 - 186,695 - 10,000 - - - 3,195 - - - 3,880 - - - 13,938 Is - 1 1s - 1 1s - $ 1,115,975 $ - $ - $ - $ 3,332 307,003 1,586,943 - - 1,586,943 $ 1,586,943 $ - $ - $ 1,893,946 Statement of Revenues and Expo 1d tureS December 31, 2010 EXPENDITURES Governmental Funds Public Works -Highways & Streets General Fund Special Revenue (Including State Liquid Fuels) Capital Projects Debt Service 430.00 General Services - Administration $ 429,531 $ - $ - $ - 431.00 Cleaning of Streets and Gutters 3,274 - - - 432.00 Winter Maintenance - Snow Removal 32,038 - - - 433.00 Traffic Control Devices 19,040 2,903 - - 434.00 Street Lighting 86,135 - - - 435.00 Sidewalks and Crosswalks - - - _ 436.00 Storm Sewers and Drains 6,249 - - - 437.00 Repairs of Tools and Machine - - 15,500 - 438.00 l Maintenance and Repairs of Roads and Bridges- 10,406 - - - 439.00 Highwg Construction and Rebuilding Pro ects - 115,940 - - Total Public Works - Highways & Streets =• $ 586,673 $ 118,843 $ 15,500 $ - Public Works - Other Services 440.00 1 Airports $ - $ - $ - $ - 441.00 Cemeteries - - - - 442.00 Electric System - - - - 443.00 Gas System - - - - 444.00 Markets - - - - 445.00 Parkin Facilities - - - - 446.00 Storm Water and Flood Control - - - - 447.00 Transit System - - - - 448.00 Water S tem - - - - 449.00 Water Trans rt and Terminals - - - - Total Public Works - Other Services = $ - I s - i s - 1 - 1$ 11 Culture and Recreation 11 451.00 Culture-Recreation Administration $ 8,719 $ 124 $ - $ - 452.00 Participant Recreation - - - - 53.00 Spectator Recreation - - - - 454.00 Parks 51,733 - - - 455.00 Shade Trees 4,470 - - - 456.00 Libraries 1,750 - - - 457.00 Civil and Military Celebrations - - - - 458.00 Senior Citizens' Centers - - - - 459.00 All Other Culture and Recreation - 349,783 - - Total Culture and (Recreation 1 1$ 66,672 $ 349,907 $ - $ - See accompanying notes. 8 N Proprietary Funds Fiduciary Fund Type Total Enterprise Internal Service Trust and Agency Memorandum Only $ 429,531 3,274 32,038 21,943 86,135 6,249 15,500 06 10,4 115,940 721,016 Is - $ 1 1s - 1 1s " $ 103,036 $ - $ - $ 111,879 - - - 51,733 - - - 4,470 - - - 1,750 - - - 349,783 11s 103,036 $ - $ - 1 1s 519,615 Statement of Revenues and Expenditures December 31, 2010 EXPENDITURES Governmental Funds Community Development General Fund Special Revenue (Including State Liquid Fuels) Capital Projects Debt Service 461.00 Conservation of Natural Resources $ - $ - $ - $ 462.00 Community Development and Housing - - - - 463.00 Economic Development - - - - 464.00 Economic Opportunity - - - - 460.00 Other Community Develo men! - - - Total Community Development is - i - s $ - Total Debt Employer Paid Benefits & Bhh ding Inns 481.00 Employer Paid Withholding Taxes and Unemplo ent Compensation $ - $ - $ - $ - 482.00 Judgments and Losses - - - - 483.00 Pension/Retirement Fund Contributions 65,581 - - - 484.00 Workers Compensation Insurance - - - - 487.00 Other Group Insurance Benefits - - - - Employer Paid Benefits & V holding items = $ 65,581 $ - $ - $ - Total Unclassified See accompanying notes. 9 M Proprietary Funds Fiduciary Fund Type Total Enterprise Internal Service Trust and Agency Memorandum Only ,is _ $ - $ $ $ _ $ - $ - $ 166,667 17,804 8,518 8,518 ¦ $ _ $ - $ 8,518 $ 192,989 ¦ 11,913 - - 77,494 $ 11,913 $ - $ - $ 77,494 $ - $ - $ - $ - $ - $ - $ 24,640 $ 24,640 ¦ $ - $ - $ 24,640 $ 24,640 Statement of Revenues and EX !nd tureS December 31, 2010 EXPENDITURES Governmental Funds Other Financing Uses General Fund Special Revenue (including State Liquid Fuels) capital Projects Debt Service 491.00 Refund of Prior Year Revenues $ - $ - $ - $ _ 492.00 Interfund Operating Transfers*" 25,000 28,832 326,266 - 493.00 Other Financing Uses - - - _ Total Other Financing Uses F25,000 $ 28,832 $ 326,266 $ - TOTAL. EXPENDITURES $ 2,644,957 497,582 11$ 937,581 EXCESSIDEFICIT OF REVENUES OVER EXPENDITURES J $ (153,787)1$ (55,827) $ (782,727)1$ - The total of line 392.00 must match the total of line 492.00 **" This amount cannot be greater than 1 % of the total expenditures within the same fund. See accompanying notes. 10 E Proprietary Funds Fiduciary Fund Type Total Enterprise Internal Service Trust and Agency Memorandum Only 380,098 380,098 $ 1,704,111 $ - $ 33,158 $ 5,817,389 ¦ $ 142,131 11$ - J$ 173,000 $ (677,210)11 ¦ ¦ Borough of Lemoyne ¦ Notes to Financial Statements ¦ December 31, 2010 ¦ ¦ Note 1 - Nature of Activity ¦ The Borough of Lemoyne, Pennsylvania (the Borough), which was founded in 1905, has an approximate population of 4,500, based on a 2010 census report, living within an area of ¦ 1.6 square miles. The Borough is in the central portion of the Commonwealth of Pennsylvania and is located in Cumberland County. ¦ Note 2 - Summary of the Borough's Significant Accounting Policies ¦ The following is a summary of the more significant accounting policies used by the Borough. ¦ A. The Financial Reporting Entity The Borough is a Pennsylvania Municipal Corporation which operates under a Council-Mayor form of government. Accounting principles generally accepted in the United States of America ¦ require that the reporting entity include the primary government, organizations for which the primary government is financially accountable, and other organizations for which the nature and ¦ significance of their relationship with the primary government are such that exclusion would cause ¦ the reporting entity's financial statements to be misleading or incomplete. In evaluating how to define the reporting entity, management has considered all potential component units. The ¦ decision to include a potential component unit in the reporting entity was made based upon the significance of their operational or financial relationships with the primary government. The ¦ component unit as determined under the above criteria and as discussed below is not included in the Borough's reporting entity as these financial statements include only the modified cash ¦ activities of the primary government. ¦ Individual Component Unit Disclosures Lemoyne Municipal Authority ¦ The Lemoyne Municipal Authority is governed by a five-member board appointed by the Borough Council. Although it is legally separate from the Borough, the Authority is a component unit and its primary purpose is to lease its wastewater system exclusively to the Borough. ¦ B. Description of Fund Accounting and Funds ¦ Fund Financial Statements ¦ The accounts of the Borough are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures or expenses, as appropriate. Government resources are allocated ¦ to, and accounted for, in individual funds based upon the purposes for which they are to be spent ¦ and the means by which spending activities are controlled. . The various funds of the Borough are grouped in the financial statements in this report as follows. ? 11 ¦ Note 2 - Summary of the Borough's Significant Accounting Policies (continued) ¦ B. Description of Fund Accounting and Funds (continued) . Governmental Fund Types Governmental funds are those through which most governmental functions of the Borough are financed. The acquisition, use, and balances of the Borough's expendable financial resources, ¦ and the related liabilities (except those accounted for in proprietary funds) are accounted for through governmental funds. The measurement focus is upon determination of changes in ¦ financial position rather than upon net income determination. The following are the Borough's governmental fund types: General Fund - is the general operating fund of the Borough. It is used to account for all financial resources except those required to be accounted for in another fund. ¦ Special Revenue Funds - are used to account for the proceeds of specific revenue sources (other than special assessments, expendable trusts, or major capital projects) that are legally restricted to expenditures for specified purposes. Highway Aid Fund Funds - is used to account for the proceeds from the State Motor License Fund. Under the Act of June 1, 1956, P.L. 1944, No. 145, this fund must be kept separate from all other funds and no other funds shall be commingled with this fund. Expenditures are legally restricted to expenditures for highway purposes in accordance with Department of Transportation regulations. County liquid fuels tax payments to the local government are not accounted for in this fund. ¦ Revitalization Fund - is used to account for aesthetic renovation projects for public streets, intersections, and common areas. Projects are funded through various grants from the Department of Community and Economic Development and private contributions. ¦ Special Events Fund - is used to account for various recreational and cultural community events which are funded through private contributions. Traffic Calming Fund - is used to account for financial resources to be used for traffic calming improvements to Borough roads. Capital Reserve Fund - is used to account for the financial reserves to be used for the acquisition, construction, or improvement of capital assets other than those financed by the proprietary fund. Proprietary Fund Types Proprietary funds are used to account for the Borough's ongoing activities which are similar to those often found in the private sector. The measurement focus is upon determination of net income. The following is the Borough's proprietary fund type: Enterprise Funds - are used to account for operations that are financed and operated in a manner similar to private business enterprises where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public on a continuing basis be financed or recovered primarily through user charges, or where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. Sewer Fund - is used to account for the operation of the sewer collection system which is operated as a public utility. 12 Note 2 - Summary of the Borough's Significant Accounting Policies (continued) B. Description of Fund Accounting and Funds (continued) Governmental Fund Types (continued) Proprietary Fund Types (continued) Swimming Pool Fund - is used to account for the operation of the Borough's public swimming pool. Fiduciary Fund Types Fiduciary Funds - are used to account for assets held by the Borough in a trustee capacity or as an agent for individuals, private organizations, other governmental units, and/or other funds. The following is the Borough's fiduciary fund type: Trust and Agency Funds - Trust funds are used to account for assets held by the government in a trustee capacity. Agency funds are used to account for assets held by the government as an agent for individuals, private organizations, other governments, and/or other funds. Pension Fund - is used to account for assets held in trust for the purpose of providing ¦ pension benefits for Borough employees. Tapping Fee Contribution Fund - is used to account for assets held in trust for the Lemoyne Municipal Authority. Escrow Fund - is used to account for developer deposits related to capital projects within ¦ the Borough. ¦ C. Basis of Accounting and Measurement Focus . Basis of Accounting ¦ Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the primary government financial statements. Modified Cash Basis The Borough's policy is to prepare its financial statements on a modified cash basis under which only revenues collected and expenditures paid and intragove rn mental due to and due from receivables and payables and liabilities for escrow deposits from third parties are recorded. Under this basis, revenue is recognized when collected rather than when earned, and expenditures are generally recognized when paid rather than when the related liability is incurred. Consequently, other receivables, other payables, inventories, long-lived assets, accrued income and expenses, and amortization and depreciation, which may be material in amount, are not reflected in the accompanying financial statements which are not intended to present the financial position, results of operations, or cash flows in conformity with accounting principles generally accepted in the United States of America. Measurement Focus The accounting and reporting treatment applied to a fund is determined by its measurement focus. Governmental funds are accounted for on a spending or "financial flow" measurement focus. Governmental fund type operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. 13 ¦ Note 2 - Summary of the Borough's Significant Accounting Policies (continued) D. Asset and Liability Accounting Policy Disclosures Cash ¦ The Borough considers all cash accounts, which are not subject to withdrawal restrictions or penalties, to be cash. ¦ Investments ¦ ¦ The Borough is authorized by statutes to invest its funds as defined in the Borough Code. Authorized types of investments for governmental and proprietary funds include the following: ¦ 1. U.S. Treasury Bills. 2. Short-term obligations of the U.S. Government or its agencies or instrumentalities. ¦ 3. Insured savings and checking accounts and certificates of deposit in bank, savings and loan . associations, and credit unions. 4. General obligation bonds of the Federal Government, the Commonwealth of Pennsylvania or any state agency, or of any Pennsylvania political subdivision. ¦ 5. Shares of mutual funds whose investments are restricted to the above categories. ¦ In addition to the investments authorized for governmental and proprietary funds, fiduciary fund ¦ investments may also be made in corporate stocks and bonds, real estate, and other investments ¦ consistent with sound business practices. . Fiduciary fund investments are recorded at fair value. All other investments are carried at cost which approximates market. Due To and From Other Funds ¦ Interfund receivables and payables arise from interfund transactions and are recorded by all ¦ funds affected in the period in which transactions are executed. Capital Assets ¦ Purchased capital assets are recorded as expenditures in the governmental fund types. Proprietary fund type capital assets are recorded as expenditures in the fund in which they are ¦ utilized. Infrastructure assets consisting of certain improvements other than buildings, including ¦ roads, bridges, curbs and gutters, streets and sidewalks, drainage systems and lighting systems, are recorded as expenditures in the fund types expending the funds. Escrow Deposits ¦ Escrow deposits are funds received from developers to lower the cost of development plan reviews to be incurred by the Borough on behalf of the related development and are recorded as a liability until the costs are incurred or funds are returned to the developer. ¦ ¦ 14 ¦ Note 2 - Summary of the Borough's Significant Accounting Policies (continued) D. Asset and Liability Accounting Policy Disclosures (continued) Long-term Debt Debt proceeds from issuance of long-term debt are reported as other financing sources, and the payments of principal and interest are reported as expenditures in the fund financial statements. E. Fund Equity Accounting Policy Disclosures Fund balances Fund balances of governmental fund types and nonexpendable trust and pension trust funds are classified in two separate categories. The categories, and their general meanings, are as follows: Reserved fund balance - indicates that portion of fund balance which has been legally segregated for specific purposes. Unreserved fund balance - indicates that portion of fund balance which is available for appropriation and expenditure in future periods. F. Revenue and Expenditure Policy Disclosures Revenues All revenues are recognized when received. Property Taxes . The Borough is permitted by state law to levy taxes up to 30 mills of assessed valuation for general purposes. State law also permits additional millage to be levied for specific purposes as defined in the law. The millage rate levied by the Borough for 2010 was 2.5 mills for general operations, as established by the Borough Council. Current tax collections for the Borough were approximately 93% of the total tax levy. The Borough's real estate taxes are based on assessed values established by the County's Board of Assessments. The taxes are collected by the Borough. Real estate taxes attach an enforceable lien on property when levied on March 1. A discount of 2% to payments made prior to April 30. A penalty of 10% is added to the face amount of taxes paid after June 30. The County of Cumberland Tax Claim Bureau collects delinquent real estate taxes on behalf of itself and other taxing authorities. Return of unpaid real estate taxes to the County Tax Claim Bureau r is made by January 15 of the subsequent year. Interfund Transactions Quasi-external transactions are accounted for as revenues, expenditures, or expenses. Transactions that constitute reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund are recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures/expenses in the fund that is reimbursed. All other interfund transactions, except quasi-external transactions and reimbursements, are reported as transfers. Nonrecurring or nonroutine permanent transfers of equity are reported as residual equity transfers. All other interfund transfers are reported as operating transfers. 15 Note 2 - Summary of the Borough's Significant Accounting Policies (continued) ¦ F. Revenue and Expenditure Policy Disclosures (continued) Intergovernmental Revenues Intergovernmental revenues represent revenues received from the Commonwealth of Pennsylvania, federal agencies, and local governmental units generally to fund specific programs ¦ and are recognized when received. ¦ Long-term Debt ¦ Debt service expenditures are recognized in the period paid. Compensated Absences Compensated absences for vacation and sick leave are recorded when paid. Note Discounts/Issuance Costs ¦ Note discounts and issuance costs incurred for debt are recognized in the period paid. ¦ Expenditures/Expenses ¦ All other expenditures and expenses are recognized when paid. ¦ Note 3 - Budget Matters ¦ The Borough of Lemoyne follows these procedures in establishing the budgetary data reflected in ¦ these financial statements: An operating budget is adopted each year for the General and Sewer Revenue Funds on a modified cash basis of accounting. Adoption of the budget by Borough Council constitutes appropriations for the expenditures for the fiscal year. Under the Home Rule Charter, the expenditure budget may be amended by Borough Council after a public hearing, provided that such amendment shall not result in expenditures exceeding estimated revenue determined at the time of the amendment. Any excess appropriations at the end of the fiscal year are not carried forward, but instead lapse. ¦ Within the budgeted funds, the Manager is authorized to transfer budgeted amounts between ¦ departments provided that such transfers do not alter total expenditures approved by Borough Council or exceed estimate revenues. Therefore, the measurement level of control over expenditures in these funds is the surplus or deficit of the fund as a whole. Operating ¦ departments are charged with the maintenance of the budget for the department as a whole; however, operating departments may exceed the appropriation with Manager approval. ¦ ¦ Note 4 - Stewardship, Compliance, and Accountability Compliance with Finance-related Legal and Contractual Provisions ¦ The Borough had no material violations of finance-related legal and contractual provisions. ¦ 16 ¦ Note 4 - Stewardship, Compliance, and Accountability (continued) Excess of Expenditures Over Appropriations in Individual Funds No individual fund, which was budgeted as required by the Commonwealth of Pennsylvania, contained an excess of expenditures over appropriations that was not covered by the cash balance at December 31, 2010 and the cash received for the year ended December 31, 2010. Note 5 - Deposits and Investments The Borough's available cash is invested in demand deposits and certificates of deposit. The deposit and investment policy of the Borough adheres to state statutes and prudent business practice. Deposits of the governmental and proprietary funds are either maintained in demand deposits or savings accounts and certificates of deposit. The carrying amounts of the cash and investments at December 31, 2010 consist of the following: Cash and cash equivalents: Governmental $1,748,952 Proprietary 1,225,791 Fiduciary 114,687 TOTAL CASH AND CASH EQUIVALENTS 3,089,430 Investments, fiduciary 1,255,206 TOTAL CASH AND INVESTMENTS $ •3 As of December 31, 2010, the Borough had the following investments in its fiduciary funds with the following average maturities: Investment Type Fiduciary funds: Tapping fee contribution fund - U.S. Treasury Obligations Less Than Fair Value 1 Year 1-5 Years 5-10 Years $ 35,000 $ 35,000 $ - $ - Pension funds: Mutual funds - equities Mutual funds - real estate High yield separate account Core plus bond separate account Bond and mortgage separate account Inflation protection separate account TOTAL PENSION FUNDS 731,809 731,809 - - 72,705 72,705 - - 42,579 - - 42,579 155,840 - - 155,840 154,924 - 62,349 - 1,220,206 804,514 154,924 62,349 415,692 TOTAL INVESTMENTS $1255.2Q6 $=A&§H $ $-415 17 . Note 5 - Deposits and Investments (continued) Custodial Credit Risk Custodial credit risk is the risk that, in the event of a financial institution failure, the Borough's deposits may not be returned to the Borough. The Borough has a deposit policy for custodial risk that requires depository institutions to pledge securities as collateral for deposits that exceed depository insurance. At December 31, 2010, the carrying amount of the Borough's bank deposits was $3,091,032, and the corresponding bank balance was $3,246,422, of which $250,000 was covered by Federal Depository Insurance or the Securities Investor Protection Corporation. The remaining 1 $2,996,422 of deposits was exposed to custodial risk because it was uninsured and collateralized with securities held by the pledging financial institution's trust department or agent, but not in the Borough's name. The Borough has no investments subject to custodial credit risk. The Borough also maintains $300 of petty cash. Concentration of Credit Risk - Investments The Borough places no limit on the amount the Borough may invest in any one issuer. Investments that represent 5% or more of a reporting unit's total investments are as follows: Fiduciary funds (pension trust funds): Mutual funds - equities 60.0% Mutual funds - real estate 6.0% Core plus bond separate account 12.8% Bond and mortgage separate account 12.7% Inflation protection separate account 5.1% Credit Risk The Borough's pension fund invests in pooled separate accounts issued by Principal Financial Group which does not obtain credit quality ratings. Interest Rate Credit Risk The Borough does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates. Foreign Currency Risk Pooled separate accounts held by the Borough's pension fund invest in international equity and debt securities from time to time as permitted by the prospectus of each fund. 18 Note 6 - Long-term Debt At December 31, 2010, long-term debt consisted of the following: Balance Balance Outstanding Outstanding Amount Due December 31, December 31, Within 2009 Payments 2010 One Year General Obligation Note, Series 1 of 2005, payable to a bank, interest payable semi-annually at the fixed rate of 3.84% per . annum through May 2015 $-5-Q000-0 $ 166,667 $_jaa" $ 83.333 ¦ Aggregate maturities required on l ong-term debt at December 31, 2010 are as follows: Total Debt Principal Interest Service 2011 $ 83,333 $ 11,200 $ 94,533 2012 83,333 8,000 91,333 2013 83,333 4,800 88,133 2014 83,334 1,600 84,934 $ 333,333 $ 2 Q $? Note 7 - Interfund Transfers Individual fund operating transfers for 2010 were as follows: Fund Transfer In Transfer Out General fund $ - $ 25,000 ¦ Capital reserve fund 28,832 326,266 Revitalization fund 326,266 28,832 Swimming pool fund 25,000 - ¦ Total all funds $_iam $ 380.09$ 19 ¦ Note 8 - Due To and From Other Funds The composition of interfund balances as of December 31, 2010 was as follows: ¦ Due From Due To Fund Other Funds Other Funds General fund $ 3,980 $ 49,220 Revitalization fund - 3,980 Escrow fund 963 - ¦ Enterprise funds: - Sewer revenue fund 40,517 Swimming pool fund 7,740 - Total enterprise funds 48,257 - Total all funds $? $? ¦ Note 9 - Joint Ventures . The Borough has an agreement with the Borough of Camp Hill, whereby it is reimbursed for certain costs incurred in connection with the operation of the sewer treatment plant. The Borough ¦ received $504,232 during 2010, as reimbursement for operating expenses. The Borough also has an agreement with the Borough of Wormleysburg through which it receives payments for treatment of sewage based on flow generated by Wormleysburg. At the end of each year, Wormleysburg's actual annual flow is determined, and an actual charge is then computed using an agreed-upon formula. This charge is then to be offset by estimated payments made, and either an additional charge or a credit is calculated. Estimated payments received from Wormleysburg in 2010 totaled $90,000. Note 10 - Tapping Fee Contribution Fund The Tapping Fee Contribution Fund is administered by the Borough of Lemoyne. A resolution . was enacted on October 2, 1991 by the Municipal Authority of the Borough of Lemoyne charging a sewer tapping fee against the owner of each property who connects such property to the sewer ¦ system after the date of the resolution. The purpose of the sewer tapping fee is to help defray the costs of construction, improvement, repair, and operation of its sewer system facilities. The amount of each sewer tapping fee payable with respect to each new connection of property to the sewer system is equal to the product of the number of equivalent dwelling units times $2,500. The assets of the Tapping Fee Contribution Fund are included within the component unit assets. 20 . Note 11 - Pension Plan . The Borough has one defined benefit pension plan for the benefit of its non-uniformed employees. Administration and custody of assets of the Non-uniformed Employees Pension Plan (a single-employer plan) are with Principal Financial Group. The Borough's payroll for employees covered by the Non-uniformed Employees Pension Plan for the year ended December 31, 2010 was estimated to be $740,511. The Borough's total payroll for 2010 was $821,213. Employees begin participation in the plan on the January 1st following completion of 1,000 hours of service and attainment of age 21. The plan is a single-employer defined benefit pension plan. A participant is eligible for normal retirement after attainment of age 62 and completion of 15 years of service. The normal retirement pension is payable monthly during the participant's lifetime. The amount of monthly pension is equal to 1.4 percent of average monthly compensation multiplied by years of credited ¦ service, up to a maximum of 25 years. Average monthly compensation is based upon the average monthly compensation over the final 60 month period prior to retirement or other . severance. ¦ Participants are 10 percent vested after the completion of 1 year of service, increasing by 10 percent per year thereafter, until fully vested after the completion of 10 years of service. If a participant continues working after the normal retirement date, their pension will not start until they actually retire. The late retirement benefit is the greater of an actuarially increased normal retirement benefit or normal retirement benefit formula, using years of credited service and average monthly compensation to actual retirement. A participant is eligible for a disability retirement, if they are totally and permanently disabled and qualify for social security disability benefits. The disability retirement benefit is the actuarial equivalent of the accrued benefit reduced by any offset under the plan. Funding Policy Member contributions are currently waived by the Borough via annual ordinance. The Borough is . required to contribute amounts necessary to fund the Employees' Plan using the actuarial basis specified by statute. The current rate is 5.72% of annual covered payroll. Plan Membership As of January 1, 2009, the date of the last actuarial valuation report, plan membership consisted of the following: Active employees 18 Retires and beneficiaries currently receiving benefits 4 Terminated employees entitled to benefits, but not ¦ yet receiving them 6 ¦ TOTAL 28 21 ¦ r ¦ ¦ ¦ ¦ ¦ 0 Note 11 - Pension Plan (continued) Annual Pension Cost and Net Pension Asset The Borough's annual pension cost and net pension asset to the pension plans for the current year are as follows: Annual required contribution $ 77,494 Contributions made 77,494 Decrease in net pension asset - Net pension asset (liability) beginning of year - Net pension asset (liability) end of year $ - The annual required contribution for the current year was determined as part of the January 1, 2009 actuarial valuation using the entry age normal cost method. The actuarial assumptions included (a) 7.75% investment rate of return and (b) a salary scale of 5.00%. Provisions for administrative expenses are added to normal cost. The assumptions included postretirement mortality, preretirement mortality, disability, percent married, and withdrawal provisions. Retirement is based upon normal retirement age. The actuarial value of assets was determined by contract basis. The unfunded actuarial accrued liability is being amortized as a level percentage of projected payroll on an open basis. Three-year Trend Information Annual Percentage Net Year Pension of APC Pension Ending Cost (APC) Contributed Obligation 12/31/08 $ 57,481 94% $ (3,873) 12/31/09 $ 53,593 107% $ - 12/31/10 $ 77,494 100% $ - Funded Status and Funding Progress The funded status of the pension fund as of January 1, 2009, the most recent actuarial valuation date, is as follows: Actuarial Actuarial Accrued Unfunded UAAL as a Value of Liability (AAL) - AAL Funded Covered Percentage Assets Entry Age (UAAL) Ratio Payroll of Covered (a) (b) (b-a) (a/b) (c) Payroll $1,117,160 $1,311,690 $ 194,530 85% $ 762,390 26% 22 Note 12 - Segment Information for Enterprise Funds The Borough maintains two enterprise funds, which provide sewer collection and swimming pool recreation activities. Segment information for the year ended December 31, 2010 was as follows: Sewer Total Swimming Revenue Enterprise Pool Fund Fund Funds Assets: Cash (deficit) Due from other funds Total assets Total liabilities Retained earnings (deficit) Operating revenues Operating expenditures Operating revenues over (under) operating expenditures $ (20,026) $1,245,817 $1,225,791 7,740 40,517 48,257 $ - $ - $ ' $ 84,088 $1,726,586 $1,810,674 105,255 1,598,856 1,704,111 (21,167) 127,730 106,563 Nonoperating revenues, interest income Nonoperating revenues, interfund transfers in Excess of revenues over expenditures Note 13 - Lease Agreements 2,049 8,519 10,568 25,000 - 25,000 The Borough leases portions of its municipal building and land to the West Shore Regional Police Department. The terms of the lease include an original five year commitment through December 31, 2010 and a five year extension at the option of the lessee. The lessee has elected to extend the lease through December 31, 2015 at the incremental lease payments stated in the agreement. The total minimum rental income commitment at December 31, 2010 under the aforementioned leases is $119,000, which is due as follows: Year ending December 31, 2011 $ 22,000 2012 23,000 2013 24,000 2014 25,000 2015 25,000 $ 1 44 The total rental income included in the financial statements for the year ended December 31, 2010 was $20,000. 23 Note 14 - Risk Management The Borough is exposed to various risks of loss related to theft of, damage to, and destruction of assets and natural disasters for which the Borough carries commercial insurance. There were no significant reductions in insurance coverage in 2010. For the years ended December 31, 2010, 2009, and 2008, claims settled were not in excess of insurance coverage. Note 15 - Contingency In the normal course of business, the Borough is involved in various legal matters. Note 16 - Subsequent Events The Borough has evaluated subsequent events through March 29, 2011. This is the date the financial statements were available to be issued. No material events subsequent to December 31, 2010 were noted. 24 ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦t ¦ ¦ 11M¦ N ¦ ! ¦ IN¦ ¦ ¦ ¦ ¦ Borough of Lemoyne Schedules of Funding Progress Required Supplementary Information Year Ended December 31, 2010 Non-uniformed Employees Pension Fund - Actuarial Valuation Date Actuarial Actuarial Accrued Unfunded UAAL as a Value of Liability (AAL)- AAL Funded Covered Percentage of Assets Entry Age (UAAL) Ratio Payroll Covered Payroll (a) (b) (b-a) (a/b) (c) ((b-a)/c) 1/1/05 $ 910,889 $ 1,015,371 $ 104,482 90% $ 714,651 15% 1 /1 /07 1,139,906 1,153,433 13,527 99% 694,704 2% 1 /1 /09 1,117,160 1,311,690 194,530 85% 762,390 26% See accompanying notes. 25 i s ¦ ¦ 0 r rki REINSEL KUNTZ LESHER certified public accountants & consultants Independent Auditors' Report on the Supplementary Information To the Borough Council Borough of Lemoyne Cumberland County, Pennsylvania Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on it. March 29, 2011 1800 Fruitville Pike, P.O. Box 8408 Lancaster, PA 17604 main: 717.394.5666 fax: 717394.0693 www.RKLcpa.com ¦ O ¦ ¦ ¦ ¦ ¦ r ¦ i ¦ ¦ ¦ ¦ a ¦ ¦ U n a ¦ ¦ ¦ ¦ ¦ a s s ¦ ¦ ¦ ¦ cn m 3 N 0 3 ' 0 ¦ r o ¦ ¦ W a ¦ ¦ ¦ r Manassas soa r s ¦ a N o u n ¦¦ Debt Statement urpose Bond (B) Note (N) Issue Date (Year) Maturity Date (Year) Original Amount of Issue Outstanding Beginning of Year (1) Principal Incurred This Year Additions Principal Paid This Year Current Year Accretion of Compound Interest Bonds Outstanding Year End (1) Plus (Less) Unamortized Premium (Discount) Total Balance GENERAL OBLIGATION B ONDS AN D NOTES : General Obligation Note N 2005 2014 $ 750,000 $ 500,000 $ - $ 166,667 $ $ 333,333 $ $ 333,333 REVENUE BONDS AND N OTES: None. - - - - - - - LEASE RENTAL DEBT/GENERAL LEASES: None. - - - - OTHER: None. - - - - Total bonds and notes outstanding s s s, s? s Capitalized lease obligations - Other debt - TOTAL OUTSTANDING DEBT $ 333,333 27 ¦ ¦ ¦ ¦ STATEMENT OF CAPITAL EXPENDITURES Category Capital Purchases Capital Construction Total Electric $ 41,000 $ - $ 41,000 Fire - - - Gas System - - General Government - " Health - - Housing - Libraries - " Mass Transit - - Parks 15,500 - 15,500 Police - - Recreation - 524,000 524,000 Sewer - - - Solid Waste - ' Streets/Highways - - ' Water - ' Other Please Specify) - - - TOTAL CAPITAL EXPENDITURES is 580,500 EMPLOYEE COMPENSATION Total salaries, wages, commissions, etc. paid this year (including all employees and elected officials)* * USE INCOME FROM W-3 STATEMENT 28 ¦ ¦ ¦ ¦ r ¦ ¦ ¦ ¦ ¦ ¦ ¦ r ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ r ¦ ¦ ¦ ¦ Borough of Lemoyne Schedules of Revenues - Modified Cash Basis - General Fund Revenues: Real estate tax Occupation and per capita tax Earned income tax Local services tax Realty transfer tax Permits, fees, and licenses Fines and forfeits Interest Rents Intergovernmental revenues: Community development Public utility realty tax General municipal pension system state aid Foreign fire insurance Local government capital and operating grants Local government units shared payments for contracted governmental services Charges for services: General government Public safety Highways and streets Solid waste collection and disposal charges Culture and recreation Other revenue receipts Total Revenues 29 YEAR ENDED DECEMBER 31, O)nin 9nna 1,036,671 20,080 473,113 199,483 73,173 78,278 4,572 8,169 59,656 1,050,526 19,905 446,005 201,641 66,489 78,087 3,588 16,131 58,009 13,135 2,547 94,134 38,227 2,094 6,125 7,095 29,610 20,338 313,976 9,275 1,419 5,000 2,109 24,801 75,597 8,518 3,802 24,342 10,392 310,953 1,110 1,521 $ 2,491,170 $ 2,408,526 Borough of Lemoyne Schedules of Expenditures - Modified Cash Basis - General Fund ¦ YEAR ENDED DECEMBER 31, 2010 2009 General Government Legislative body - Other expenditures $ $ 2,025 4,844 ¦ Executive: 118 1 70 200 Salaries - borough manager and administrative assistant , 9 , Employee benefits 28,074 44,650 046 7 Payroll taxes 6,970 , ¦ Professional services 1,328 2,517 Accounting and auditing services 13,542 12,562 Communications 4,856 6,762 Advertising and printing 9,411 2,782 Continuing education 2,457 _ Software 4,390 . Capital purchases - 1,762 Office supplies and other expenditures 10,362 8,377 Total Executive 172,508 156,658 Tax Collection: Salary - tax collector 7,000 7,000 Payroll taxes 536 536 Insurance 159 132 Other expenditures 1,605 677 Total Tax Collection 9,300 8,345 Law and engineering: Borough solicitor 36,683 45,560 Borough engineer 7,267 21,461 Total Law and Engineering 43,950 67,021 Building and plant: Salaries - maintenance 19,608 14,660 Payroll taxes 1,555 1,151 Insurance 10,630 5,475 Utilities 23,396 19,485 Repairs and maintenance 6,100 3,206 Other expenditures 1,178 5,548 Total Building and Plant 62,467 49,525 Total General Government 290,250 286,393 30 Borough of Lemoyne . Schedules of Expenditures - Modified Cash Basis - General Fund (cont inued) • YEAR ENDED DECEMBER 31, . 2010 2009 Public Safety Police protection - West Shore Regional Police Department 898,267 853,128 Fire protection: 21,838 23,254 Water - hydrants Foreign fire insurance contribution 38,227 126 630 33,963 629 123 Contribution to West Shore Bureau , , Total Fire Protection 186,695 180,846 Ambulanceirescue - ¦ Contribution to West Shore Ambulance Association 10,000 5,000 Protective inspections: Salary - code enforcement officer - 5,678 i Payroll taxes - 519 Insurance 122 71 Other expenditures 3,073 1,927 Total Protective Inspections 3,195 8,195 Planning and zoning - Legal fees and stenographic services 3,880 352 Crossing guards: Salaries - crossing guards 11,438 11,540 Payroll taxes and insurance 2,500 1,740 Total Crossing Guards 13,938 13,280 Total Public Safety 1,115,975 1,060,801 Health and welfare - Contribution to Humane Society 3,332 3,848 Public works - sanitation - Contracted solid waste collection and disposal services 307,003 311,481 S Public works - highways and streets: Salaries and wages 214,462 211,450 Employee benefits 123,108 94,256 Payroll taxes 18,197 16,758 Insurance 25,196 12,985 r Uniforms 3,717 4,329 31 ¦ Borough of Lemoyne ¦ Schedules of Expenditures - Modified Cash Basis - General Fund (continued) ¦ YEAR ENDED DECEMBER 31, ¦ 2010 2009 Public works - highways and streets: (continued) Materials and supplies 50,010 885 38,220 243 14 Vehicle operating expenditures 19, , Utilities 6,295 9,208 Communications 3,540 3,415 Repairs and maintenance 31,147 56,272 Equipment rental 3,500 3,500 . Street lighting 86,135 77,455 Other expenditures 1,481 1,884 . Construction - 817 Capital purchases - 149,920 Total Public Works - Highways and Streets 586,673 694,712 ¦ Culture - recreation: Salaries and wages 26,637 22,209 Payroll taxes 2,033 1,702 Insurance - 12 Vehicle operating expenditures 1,642 1,396 Repairs and maintenance 9,801 8,840 Utilities 3,249 3,126 Equipment rental 6,187 5,986 Other expenditures 2,184 2,447 ¦ Shade trees 4,470 4,676 Contribution to West Shore Recreation 8,719 8,303 ¦ Contribution to library 1,750 2,750 Capital purchases - 3,095 ¦ Total Culture - Recreation 66,672 64,542 ¦ ¦ Debt service: Interest 17,804 20,853 Principal 166,667 83,334 ¦ Total Debt Service 184,471 104,187 Employer-paid benefits - Pension contribution 65,581 32,548 Other financing issues - Interfund operating transfers 25,000 233,683 Total General Fund Expenditures $ 2,644,957 $ 2,792,195 ¦ i 32 ¦ Borough of Lemoyne Statement of Revenues and Expenses - Modified Cash Basis - Budget and Actual - General Fund Year Ended December 31, 2010 General Fund Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Revenues: Real estate tax $ 1,031,500 $ 1,031,500 $ 1,036,671 $ 5,171 Occupation and per capita tax 20,000 20,000 20,080 80 Earned income tax 446,000 446,000 473,113 27,113 Local services tax 170,000 170,000 199,483 29,483 Realty transfer tax 100,000 100,000 73,173 (26,827) Permits, fees, and licenses 63,000 63,000 78,278 15,278 Fines and forfeits 2,100 2,100 4,572 2,472 Interest 15,000 15,000 8,169 (6,831) Rents 20,000 20,000 59,656 39,656 Intergovernmental revenues 52,000 52,000 148,043 96,043 Local government units shared payments for contracted governmental services 14,000 14,000 8,219 (5,781) Charges for services 370,050 370,050 380,294 10,244 Other revenue receipts - - 1,419 1,419 Total Revenues 2,303,650 2,303,650 2,491,170 187,520 Expenditures: General government 302,760 302,760 290,250 (12,510) Public safety: Police protection 859,125 859,125 898,267 39,142 Fire protection 189,130 189,130 186,695 (2,435) Ambulance 10,000 10,000 10,000 - Protective inspections 23,965 23,965 3,195 (20,770) Planning and zoning 2,750 2,750 3,880 1,130 Other public safety 11,405 11,405 13,938 2,533 Health and welfare 3,500 3,500 3,332 (168) Public works - sanitation 314,000 314,000 307,003 (6,997) Public works - highways and streets 567,548 567,548 586,673 19,125 Culture - recreation 63,575 63,575 66,672 3,097 Pension contributions - - 65,581 65,581 Debt service 92,000 92,000 184,471 92,471 Total Expenditures 2,439,758 2,439,758 2,619,957 180,199 Excess of Revenues Over (Under) Expenditures (136,108) (136,108) (128,787) 7,321 Other financing sources (uses): Transfers in 153,000 153,000 - (153,000) Transfers out (17,000) (17,000) (25,000) (8,000) Total Other Financing Sources (Uses) 136,000 136,000 (25,000) (161,000) Net Change in Fund Balance $ (108) $ (108) (153,787) $ (153,679) Fund Balances, Beginning of Year 965,493 Fund Balances, End of Year $ 811,706 33 ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ Borough of Lemoyne Schedules of Revenues - Modified Cash Basis - Sewer Revenue Fund YEAR ENDED DECEMBER 31, 2010 2009 Sewer rentals Treatment charges: Borough of Camp Hill Borough of Wormleysburg Interest income Intergovernmental revenues - state pension aid Other revenue receipts: Waste dumping charges Connection fees Total Revenues 34 $ 1,030,272 $ 1,012,826 563,895 115,484 8,519 415,958 119,858 12,848 28,375 15,285 55,736 1,650 - $ 1,735,105 $ 1,645,601 ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ Borough of Lemoyne Schedules of Expenses - Modified Cash Basis - Sewer Revenue Fund YEAR ENDED DECEMBER 31, 2010 2009 System operating expenses: Sanitary sewer disposal: Salaries and wages $ 387,849 $ 397,407 Employee benefits 182,641 140,923 Payroll taxes 31,160 32,063 Treatment charges 44,409 45,595 Disposal service 152,890 150,378 Materials and supplies 11,222 16,999 Utilities 175,179 122,145 Repairs and maintenance 64,018 60,996 Minor equipment replacement 2,016 2,393 Vehicle operating expenses 17,278 11,017 Capital purchases 30,223 20,802 Sanitary sewer collection: Salaries and wages 36,195 26,568 Employee benefits 20,281 14,825 Payroll taxes 2,786 3,373 Utilities 4,693 2,755 Repairs and maintenance 14,984 18,519 Minor equipment replacement 706 479 Vehicle operating expense 1,103 1,034 Capital purchases 1,125 2,455 Total System Operating Expenses Administrative expenses: Salaries and wages Office supplies and expense Communications Billing and collections Insurance Professional services Maintenance agreements Pension contribution Other expenses 1,180,758 1,070,726 19,668 39,516 445 1,800 5,886 6,156 2,054 1,166 23,206 12,028 92,464 66,936 6,320 6,320 11,913 28,375 6,142 4,686 Total Administrative Expenses Authority rental and contribution payments Total Expenses 168,098 166,983 250,000 250,000 $ 1,598,856 $ 1,487,709 35 Borough of Lemoyne Statement of Revenues and Expenses - Modified Cash Basis - Budget and Actual - Sewer Revenue Fund Years Ended December 31, 2010 Revenues: Sewer use charges Treatment charges Interest income Intergovernmental grants Other revenue receipts Total Revenues Expenses: Sewage collection and treatment Sewage collection system Administration Authority rental/contribution Total Expenses Excess of Revenues Over Expenses Budgeted Amounts Original Final Actual Variance $ 950,000 $ 950,000 $ 1,030,272 $ 80,272 697,700 697,700 679,379 (18,321) 7,000 7,000 8,519 1,519 32,000 32,000 16,935 (15,065) 1,686,700 1,686,700 1,735,105 48,405 1,436,685 1,436,685 1,348,856 250,000 87,829 250,000 250,000 - 1,686,685 1,686,685 1,598,856 87,829 $ 15 $ 15 $ 136,249 $ 136,234 36 Borough of Lemoyne Schedules of Real Estate Taxes - General Fund Original assessment: Additions Deletions Net Assessments Tax Rate Net assessed tax Discounts allowed Penalties collected Net Tax Due to the Borough Amount received by the Borough Returned to delinquent collector Uncollected Balance YEAR ENDED DECEMBER 31, 2010 2009 $ 431,941,130 $ 428,905,590 910,920 3,045,530 - (682,940) $ 432,852,050 $ 431,268,180 2.50 mills 2.50 mills $ 1,081,193 $ 1,074,644 (18,739) 3,994 1,066,448 (18,994) 3,584 1,059,234 (1,029,298) (1,024,382) - (12,533)_ $ 37,150 $ 22,319 37 ¦ ¦ ¦ s ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ Borough of Lemoyne Statements of Revenues, Expenditures, and Changes in Fund Balances - Modified Cash Basis - General Fund Years Ended December 31, 2001 Through 2010 Revenues: Real estate taxes Occupation and per capita tax Earned income tax Occupational privilege tax Realty transfer tax Permits, fees, and licenses Fines and forfeits Interest Rents Intergovernmental revenues Local government unit shared payments for contracted governmental services Charges for services Storm water management assessment Other revenue receipts Contributions and donations from private sources Total Revenues Expenditures: General government and pension Public safety: Police protection Fire protection Ambulance Protective inspections Planning and zoning Other public safety Health and welfare Public works - sanitation Public works - highways and streets Culture and recreation Debt service Total Expenditures Deficiency of Revenues Under Expenditures Other financing sources (uses): Sales of fixed assets Refund of prior year revenues Refund of prior year expenditures Transfers out Transfers in Net Change in Fund Balances 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 $ 1,036,671 $ 1,050,526 $ 838,509 $ 839,588 $ 841,716 $ 835,235 $ 717,037 $ 490,899 $ 464,557 $ 457,976 20,080 19,905 21,153 21,144 20,832 22,626 21,154 21,704 20,800 21,327 473,113 446,005 400,313 676,504 800,296 621,466 741,102 478,362 480,019 415,943 199,483 201,641 105,770 52,378 143,601 95,556 51,307 65,904 62,554 72,665 73,173 66,489 143,101 196,161 172,285 141,001 122,988 79,834 83,086 77,965 78,278 78,087 67,738 60,159 59,084 55,457 55,973 52,573 46,410 42,580 4,572 3,588 3,803 4,323 4,059 3,769 5,388 5,701 8,059 4,912 8,169 16,131 78,742 132,265 121,568 59,229 13,419 8,910 16,909 37,225 59,656 58,009 95,242 94,795 12,790 3,729 13,249 4,107 9,586 22,998 148,043 107,507 - - - - - - 8,219 8,518 10,605 - - - - - 380,294 350,599 367,380 354,358 311,552 434,102 368,182 287,365 359,280 381,077 - - 30,000 750,000 - - - 1,419 1,521 1,339 1,863 1,748 2,014 25,608 25,308 25,879 33,346 250 - 22,700 2,491,170 2,408,526 2,133,695 2,463,538 2,489,781 3,024,184 2,135,407 1,520,667 1,577,139 1,590,714 355,831 318,941 424,748 390,100 567,555 1,158,538 253,031 228,502 172,994 211,895 898,267 853,128 693,624 655,779 638,300 620,841 570,540 589,977 533,303 471,927 186,695 180,846 181,574 165,176 112,048 103,065 74,891 72,467 73,603 71,897 10,000 5,000 10,000 - - 4,706 - 3,195 8,195 17,252 9,803 9,174 9,181 9,233 6,610 6,562 11,020 3,880 352 1,744 642 225 429 260 583 - 450 13,938 13,280 8,254 9,979 9,353 9,397 8,155 8,438 8,423 6,580 3,332 3,848 2,002 - 550 1 306 500 75 521 307,003 311,481 311,058 272,758 272,777 271,882 209,581 209,871 205,984 214,247 586,673 694,712 807,267 723,989 618,739 605,443 533,147 507,590 588,845 462,378 66,672 64,542 53,324 51,727 56,010 49,647 37,675 28,959 41,768 68,381 184,471 104,187 107,546 111,093 29,256 13,421 - - - 2,619,957 2,558,512 2,618,393 2,391,046 2,313,987 2,841,845 1,696,819 1,653,497 1,636,263 1,519,296 (128,787) (149,986) (484,698) 72,492 175,794 182,339 438,588 (132,830) (59,124) 71,418 4,240 2,352 3,268 371,420 56,376 240 6,720 878 - - - - - (10,660) 10,468 (25,000) (233,686) (58,250) (60,000) (131,622) (6,541) (52,404) (45,062) (44,642) (84,818) 140,000 - 52,404 38,402 35,685 44,474 $ (153,787) $ (239,432) $ (540,596) $ 15,760 $ 415,592 $ 232,174 $ 428,168 1 (132,770) $ (68,081) $ 42,420 38 ¦ ¦ ¦ s ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ ¦ i ¦ ¦ Borough of Lemoyne Schedule of Statistical Information Years Ended December 31, 2001 Through 2010 Assessed Value of Taxable Real Estate Real Estate Tax Millage Rates Real Estate Taxes Assessed' Real Estate Taxes Collected Ratio of General Bonded Debt to Assessed Value 2007 2006 2005 2004 2003 2002 2001 2010 2009 2008 $ 432,852,050 $ 431,268,180 $ 428,133,420 $ 428,625,500 $ 428,486,850 $ 426,287,390 $ 367,513,070 $ 365,347,460 $ 354,864,430 $ 350,612,100 2.50 mills 2.50 mills 1.99 mills 1.99 mills 1.99 mills 1.99 mills 1.99 mills 1.33 mills 1.33 mills 1.33 mills $ 1,081,193 $ 1,074,644 $ 851,986 $ 852,965 $ 852,689 $ 848,312 $ 731,351 $ 484,543 $ 471,970 $ 470,523 $ (1,029,298) $ (1,024,382) $ 802,930 $ 810,612 $ 812,684 $ 809,219 $ 695,190 $ 462,184 $ 444,901 $ 442,995 0.077% 0.116% 0.117% 0.136% 0.176% - % - % - % - % - % Includes pro-rated interim tax assessments. 39