city of youngsville - louisiana...city of youngsville, louisiana statement of net position june...

CITY OF YOUNGSVILLE, LOUISIANA

Financial Report

Year Ended June 30. 2015

TABLE OF CONTENTS

Independent Auditors' Report

BASIC FINANCIAL STATEMENTS

Page

1-3

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS) Statement of net position Statement of activities

FUND FINANCIAL STATEMENTS (FFS) Balance sheet - governmental fimds Reconciliation of the governmental funds balance sheet

to the statement of net position Statement of revenues, expenditures, and changes in fund balances-

governmental funds Reconciliation of the statement of revenues, expenditures, and

changes in fund balances of governmental funds to the statement of activities Combined statement of net position - proprietary funds Combined statement of revenues, expenses, and changes in fund net

position - proprietary funds Combined statement of cash flows - proprietary funds

Notes to basic financial statements

REQUIRED SUPPLEMENTARY INFORMATION Budgetary comparison schedules:

General Fund 1968 Sales Tax Special Revenue Fund 1981 Sales Tax Special Revenue Fund 1999 Sales Tax Special Revenue Fund Recreational Facility Sales Tax Special Revenue Fund Schedule of employer's share of net pension liability Schedule of employer contributions Notes to the required supplementary information

OTHER SUPPLEMENTARY INFORMATION

Statement of net position - compared to prior year totals General and Special Revenue Funds - comparative balance sheet

Major Governmental Funds - Detail budgetary comparison schedules compared to actual for prior year:

General Fund - budgetary comparison schedule - revenues General Fund - budgetary comparison schedule- expenditures 1981 Sales Tax Fund - budgetary comparison schedule - expenditures

10

11

12

13 14

15 16-17

18-46

48 49 50 51 52 53 54

55-56

58 59

60 61-62

63

(continued)

TABLE OF CONTENTS (continued)

Page

Major Governmental Funds - Schedule of revenues, expenditures, and changes in fund balance - budget (GAAP basis) and actual:

General Obligation Bonds Fund 64 Street Improvements and Construction Fund 65 Recreational Facility Construction Fund 66

Schedule of number of utility customers (unaudited) 67 Schedule of insurance in force (unaudited) 68 Combined schedule of interest-bearing deposits - all funds (unaudited) 69 Comparative statement of net position - Utility Fund 70 Comparative departmental analysis of revenues and expenses 71-72 Comparative statement of net position - Sports Complex Fund 73 Comparative statement of revenues, expenses, and changes in fund net position -

Sports Complex Fund 74

INTERNAL CONTROL, COMPLIANCE, AND OTHER MATTERS Independent Auditors' Report on Internal Control over Financial Reporting

and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 76-77

Summary schedule of current and prior year audit findings and management's corrective action plan 78-80

C. Burton Kolder, CPA* Russell F. Champagne, CPA* Victor R. Slaven, CPA* Gerald A. Thihodeaux, Jr., CPA" Robert S. Carter, CPA* Arthur R. MIxon, CPA* Brad E. Kolder, CPA, JD* Stephen J. Anderson, CPA" Penny Angelle Soruggirs, CPA Christine C. Doucet, CPA Wanda F. Arcement, CPA, CVA Bryan K. Joubert, CPA Matthew E. Margsglio, CPA

Casey L Ardoln, CPA Allen J. LaBry, CPA Albert R. Leger, GPA,PFS|CSA* Marshall W. Guld|-y, CPA Stephen R. Moore, Jr., CPA,PFS,CFP*,ChFC* James R. Roy, CPA Robert J. Metz, CPA Alan M- Taylor, CPA Kelly M. Doucet, CPA Mandy B. Self, CPA Paul L. Delcambre, Jr., CPA Jane R. Hebert, CPA Deldre L. Stock, CPA Karen V. Fontenot, CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, CERTIFIED PUBLIC ACCOUNTANTS

LLC OFFICES

INDEPENDENT AUDITORS' REPORT

183 South Beadle Rd. Lafayette, LA 70500 Phone (337) 232-4141 Fax (337) 232-8660

113 East Bridge St. Breaux Bridge, LA 70517 Phone (337) 332-4020 Fax (337) 332-2867

1234 David Dr. Ste203 Morgan City, LA 70300 Phone (985) 384-2020 Fax (985) 384-3020

434 East Main Street Ville Platte, LA 70586 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberlln, LA 70655 Phone (337) 639-4737 Fax (337) 639-4568

450 East Main Street New Iberia, LA 70560

Phone (337) 367-9204 Fax (337) 367-9200

200 South Main Street Abbeville, LA 70510

Phone (337) 893-7944 Fax (337) 893-7946

1013 Main Street Franklin, LA 70538

Phone (337) 828-0272 Fax (337) 828-0290

133 East Waddll St. Marksvllle LA 71351

Phone (318) 253-9252 Fax (318)253-0681

1428 Metro Drive Alexandria, LA 71301

Phone (318) 442-4421 Fax (318) 442-9833

• A Professional Aoociunling Corporation

WEB SiTE WWW.KCSRCPAS.COM

Retired: Conrad 0. Cliaptnan, CPA* 2006

The Honorable Ken Ritter, Mayor, and Members of the Board of Aldermen

Cit>' of Youngsville, Louisiana

Report on the Financial Statements

We have audited the accompanying financial statements of the governmental activities, the business-type activities, and each major fund of tiie City of Youngsville, Louisiana, (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents.

Management's Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free 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 principles 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 our audit provides a reasonable basis for our audit opinions.

Member of: /WIERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS

Member of: SOCIETY OF LOUISIANA

CERTIFIED PUBLIC ACCOUNTANTS

Opinions

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, and each major fund of the City of Youngsville, 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 discussed in Note 23 to the basic fmancial statements, the City had prior period adjustments. Our opinion is not modified with respect to this matter.

Other Matters

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the budgetary comparison information and the schedules of employer's share of net pension liability and employer contributions on pages 48 through 56 be presented to supplement the basic financial statements. Such information, although not a part of the basic fmancial 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 l3asic financial statements, and other knowledge we obtained during our audit of the basic fmancial 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 e^qjress an opinion or provide any assurance.

The City of Youngsville has omitted management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing 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 fmancial reporting for placing the basic fmancial statements in an appropriate operational, economic, or historical context. Our opinion on the basic fmancial statements is not affected by this missing information.

Other Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Youngsville, Louisiana's basic financial statements. The other supplementary information on pages 58 through 74 is presented for purposes of additional analysis and is not a required part of the basic financial statements.

The comparative statements 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 other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, this other supplementary information is fairly stated in all material respects in relation to the basic fmancial statements as a whole.

The prior year comparative information on the comparative statements has been derived from the City of Youngsville's 2014 financial statements, which was 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 die underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America and, in our opinion, was fairly presented in all material respects in relation to the basic financial statements from which they have been derived.

The various schedules have not been subjected to the auditing procedures applied in the audit of the basic financial statements and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards

In accordance with Government Auditing Standards, we have also issued our report dated December 15, 2015, on our consideration of the City of Youngsville, Louisiana's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is 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 City's internal control over financial reporting and compliance.

Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants

Lafayette, Louisiana December 15, 2015

BASIC FINANCIAL STATEMENTS

GOVERNMENT-WIDE FINANCIAL STATEMENTS (GWFS)


Statement of Net Position June 30,2015

Governmental Business-Type Activities Activities Total

ASSETS Current assets:

Cash and interest-bearing deposits $ 4,858,645 $ 987,448 $ 5,846,093 Receivables, net 612,650 380,419 993,069 Internal balances 502,254 (502,254) Due from other governmental units 605,180 - 605,180

Inventory - 5,790 5,790 Prepaid items 74,566 124,677 199,243

Total current assets 6,653,295 996,080 7,649,375

Noncurrent assets: Restricted assets:

Cash and interest-bearing deposits 6,424,725 2,192,032 8,616,757 Investments 960,423 - 960,423

Capital assets:

Land and construction in progress 5,511,234 5,098,830 10,610,064 Capital assets, net 39,866,882 34,749,054 74,615,936

Total noncurrent assets 52,763,264 42,039,916 94,803,180

Total assets 59,416,559 43,035,996 102,452,555

DEFERRED OUTFLOWS OF RESOURCES 79,261 - 79,261

LIABILITIES Current liabilities:

Accounts, salaries and other payables 2,482,157 674,508 3,156,665 Unearned revenue - 44,550 44,550 Capital lease payable 37,774 - 37,774 Bonds payable 1,701,000 290,000 1,991,000 Accrued interest 264,471 8,910 273,381

Total current liabilities 4,485,402 1,017,968 5,503,370

Noncurrent liabilities: Customers' deposits - 309,823 309,823 Capital lease payable 25,705 - 25,705 Net pension liability 277,519 - 277,519 Bonds payable 33,160,426 3,854,000 37,014,426

Total noncurrent liabilities 33,463,650 4,163,823 37,627,473

Total liabilities 37,949,052 5,181,791 43,130,843

DEFERRED INFLOWS OF REVENUES 68,394 ^ 68,394

NET POSITION Net investment in capital assets 12,960,883 36,350,010 49,310,893 Restricted for debt service 2,630,682 190,723 2,821,405 Restricted for water fund operations - 685,457 685,457

Um-estricted 5,886,809 628,015 6,514,824

Total net position $21,478,374 $ 37,854,205 $59,332,579

The accompanying notes are an integral part of the basic financial statements.


Statement of Activities For the Year Ended Jime30, 2015

Program Revenues

Fees, Fines, and Operating

Grants and Capital

Grants and

Net (Expense) Revenues and Changes in Net Position

Governmental Business-Type Activities Expenses Charges for Services Contributions Contributions Activities Activities Total

Governmental activities: General government $ 1,579,830 5 i 756,878 $ $ $ (822,952) $ $ (822,952) Public safety:

Police 1,689,441 240,693 96,699 - (1,352,049) - (1,352,049) Fire 522,638 - - (522,638) - (522,638)

Streets 1,928,461 - 24,756 (1,903,705) - (1,903,705)

Culture and recreation - - 2,345,300 2,345,300 - 2,345,300

Interest on long-term debt 1,304,887 - - (1,304,887) - (1,304,887)

Total governmental activities 7,025,257 997,571 96,699 2,370,056 (3,560,931) - (3,560,931)

Business-type activities: Water 1,926,793 1,782,761 13,546 - (130,486) (130,486) Sewer 963,556 825.907 286,970 - 149,321 149,321 Sanitation 867,503 887,760 - - 20,257 20,257 Recreation 1,876,450 464,683 - - (1,411,767) (1,411,767)

Total business-type activities 5,634,302 3,961,111 300,516 (1,372,675) (1,372,675)

Total $ 12,659,559 3 ; 4,958,682 $ 96,699 $ 2,670,572 $ (3,560,931) $ (1,372,675) $ (4,933,606)

General revenues: Taxes -

Ad valorem taxes 804,981 282,279 1,087,260 Sales and use taxes, levied for general purposes 7,683,467 - 7,683,467 Franchise taxes 542,152 - 542,152

Grants and contributions not restricted to specific programs -State sources 15,075 - 15,075 Non-employer pension contribution 7,377 - 7,377

Interest and investment earnings 17,043 1,040 18,083 Miscellaneous 15,600 500 16,100 Loss on sale of capital assets - (1,462) (1,462)

Transfers (2,491,699) 2,491,699 -Total general revenues and transfers 6,593,996 2,774,056 9,368,052

Change in net position 3,033,065 1,401,381 4,434,446

Net position - July 1, 2014, as restated 18,445,309 36,452,824 54,898,133

Net position - June 30, 2015 $ 21,478,374 $ 37,854,205 $ 59,332,579

The accompanying notes are an integral part of the basic financial statements

FUM) FINANCIAL STATEMENTS (FFS)

MAJOR FUND DESCRIPTIONS

General Fund

The General Fund is used to account for resources traditionally associated with governments which are not required to be accounted for in another fund.

Special Revenue Funds 1968 Sales Tax Fund -To account for the receipt and use of proceeds of the City's 1968 1% sales and use tax, The tax is dedicated to constructing, acquiring, extending, improving and/or maintaining sewers and sewerage disposal works, waterworks, public streets, roads, alleys, sidewalks, and drainage facilities, including the purchase of equipment therefore. The tax proceeds may also be funded into bonds or used to pay any bonded or funded indebtedness of the City incurred for such capital purposes, to the extent and in the manner provided by state law.

1981 Sales Tax Fund -

To account for the receipt and use of proceeds of foe City's 1981 1% sales and use tax. The tax is dedicated to maintain foe City's law enforcement facilities, including the acquisition of equipment and furnishings therefore, the construction and/ or acquisition of buildings to house such facilities, and paying employees' and policemen's salaries. On November 15, 2012, 50% of the tax was rededicated to the General Fund for a period of two years ending December 31, 2014. On November 6, 2014, the 50% rededication was approved as a permanent change.

1999 Sales Tax Fund -To account for the receipt and use of proceeds of the City's 1999 1/2% sales and use tax. The tax is dedicated to constructing, acquiring, improving, maintaining and operating sewers and sewerage disposal works for the City and to be funded into bonds to pay the capital costs thereof to the extent and in the marmer permitted by state law.

Recreational Facilities Sales Tax Fund -

To account for the receipt and use of proceeds of foe City's Recreational Facilities 1% sales and use tax. The tax is dedicated to pay for the debt service on the revenue bonds associated with the acquisition, construction, and equipping of a multipurpose community center and related infrastructure and recreational facilities and ongoing operation and maintenance of the facilities.

Debt Service Fund General Obligation Bonds Fund -

To accumulate monies for payment of $5,000,000 of 2009 sales tax bonds and $8,140,000 of 2011 revenue bonds, which are financed from the collection of the City's 1968 1% sales tax, rededicated in 2006. The fund is also utilized to accumulate monies for payment of $10,000,000 2012 and $9,500,000 2013 Recreational Facility Sales Tax Revenue Bonds, which is financed fi-om the collection of the City's Recreational Facility 1% sales tax. Additionally, the fund is used to accumulate monies for payment of $2,025,000 of 2012 limited tax revenue bonds, which are financed from the collection of ad valorem taxes. Finally, the fund is used to accumulate monies for payment of $848,000 of 2013 sales tax refunding bonds, which are financed from the collection of the City's 1999 1/2% sales tax.

Capital Projects Fund

street Improvements and Construction Fund -

To account for the improvements and construction of various street projects using proceeds from grant revenue and issuance of general obligation bonds.

Recreational Facility Construction Fund -

To account for the construction of the recreational facility and the multi-purpose community center utilizing the proceeds of foe $10,000,000 2012 and $9,500,000 2013 Recreational Facility Sales Tax Revenue Bonds and grant revenues.

Enterprise Funds Utility Fund -

To account for the provision of water, sewerage and sanitation services to residents of foe City. 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.

Snorts Comolex Fund -

To account for the operation of foe Youngsville Sports Complex facility. All fees and revenues derived from foe facility and all related expenses are accounted for in this fund.

ASSETS Cash and interest-bearing deposits Investments Receivables:

Taxes Accrued interest Due from other governmental units Due from other funds Other

Prepaid items

Total assets

LIABILITIES AND FUND BALANCES Liabilities:

Accounts payable Contracts payable Retainage payable Accrued liabilities

Due to other funds

Total liabilities

Fund balances -

Nonspendable (for prepaid items)

Restricted: Sales tax dedications Debt service Capital projects

Unassigned

Total fund balances

Total liabilities and fund balances


Balance Sheet Governmental Funds

June 30, 2015

General

1968 Sales Tax

Special Revenue

1981 Sales Tax

Special Revenue

1999 Sales Tax Special

Revenue

Recreational Facility

Sales Tax Revenue

General Obligation

Bonds

Street Improvements

and Construction

Recreational Facility

Construction Total

$3,190,860 $ 423,428 $ 477,147 $ 611,407 $ 155,803 $ 2,636,740 340,327

$ 3,440,867 620,096

$ 347,118 $ 11,283,370 960,423

81,087 598,550

4,529 38,105

425,468

442,863

20

246,292 13,644 36,461

767,079

168,989

150,829

-524,093 228,802 -

594,457 20

605,180 2,434,415

18,173 74,566

$3,913,131 $1,291,759 $ 773,564 $1,378,486 $ 475,621 $ 2,977,067 $ 4,813,858 $ 347,118 $15,970,604

$ 422,486

67,351 87,279

$ 380

1,237,266

$ 42,734

48,472 145,851

$ 325 $

287

$

81,914

$ 1,612,007

288,402

326,263

$

53,301

$ 465,925 1,612,007

288,402 115,823

1,932,161

577,116 1,237,646 237,057 325 287 81,914 2,226,672 53,301 4,414,318

38,105 - 36,461 - - - - - 74,566

3,297,910

54,113 500,046 1,378,161 475,334 2,895,153

2,587,186 293,817

2,407,654 2,895,153 2,881,003 3,297,910

3,336,015 54,113 536,507 1,378,161 475,334 2,895,153 2,587,186 293,817 11,556,286

$3,913,131 $ 1,291,759 $ 773,564 $ 1,378,486 $ 475,621 $ 2,977,067 $ 4,813,858 $ 347,118 $ 15,970,604

The accompanying notes are an integral part of the basic financial statements. 10


Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position

June 30, 2015

Total fund balances for governmental funds at June 30, 2015 $ 11,556,286

Total net position reported for governmental activities in the statement of net position is different because:

Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Those assets consist of:

Land and construction in progress $ 5,511,234 Buildings, net of $519,436 accumulated depreciation 1,876,586 Infrastructure,netof$4,112,201 accumulated depreciation 37,363,868 Equipment net of $1,480,750 accumulated depreciation 626,428 45,378,116

The deferred outflows of expenditures for the municipal and police employees retirement systems are not a use of current resources, and therefore, are reported in the funds 79,261

Long-term liabilities at June 30, 2015:

Capital lease payable (63,479) Net pension liability (277,519) Bonds payable (34,861,426) Accrued interest payable (264,471) (35,466,895)

The deferred inflows of contributions for the municipal and police employees retirement systems are not available resources, and therefore, are not reported in the funds (68,394)

Total net position of governmental activities at June 30, 2015 $ 21,478,374


11


Statement of Revenues, Expenditures, and Changes in Fund Balances-Governmental Fimds

For the Year Ended Jime 30, 2015

1968 1981 1999 Recreational Street Sales Tax Sales Tax Sales Tax Facility General Improvements Recreational

Special Special Special Sales Tax Obligation and Facility General Revenue Revenue Revenue Revenue Bonds Construction Construction Total

Revenues: Taxes $ 2,439,172 $ 2,196,999 $ 1,104,958 $ 1,098,499 $ 2,190,972 $ $ $ $ 9,030,600 Licenses and permits 756,878 - - - - - - - 756,878 Intergovernmental 39,831 - 96,699 - • - - 2,345,300 2,481,830 Fines and forfeits 227,848 - 12,845 - - - - - 240,693

Miscellaneous 12,694 191 6,055 95 1,944 5,108 3,710 2,846 32,643

Total revenues 3,476,423 2,197,190 1,220,557 1,098,594 2,192,916 5,108 3,710 2,348,146 12,542,644

Expenditures: Current -

General government 1,459,954 23,137 23,691 15,195 11,270 - 23,242 - 1,556,489 Public safety:

Police - - 1,600,764 - - - - - 1,600,764 Fire 522,147 - - - - - - - 522,147

Streets 725,074 - - - - - - - 725,074 Capital outlay 411,539 - 231,485 - - - 2,348,775 2,697,982 5,689,781 Debt service 38,862 - - - - 2,715,592 61,211 - 2,815,665

Total expenditures 3,157,576 23,137 1,855,940 15,195 11,270 2,715,592 2,433,228 2,697,982 12,909,920

Excess (deficiency) of revenues over expenditures 318,847 2,174,053 (635,383) 1,083,399 2,181,646 (2,710,484) (2,429,518) (349,836) (367,276)

Other financing sources (uses): Issuance of debt - - - - - - 3,500,000 - 3,500,000 Transfers in 628,002 - - - - 2,866,516 1,626,125 - 5,120,643 Transfers out (296.501) (2,578,180) - (527,912) (2,318,039) (1,157,775) (733,935) - (7,612,342)

Total other financing sources (uses) 331,501 (2,578,180) - (527,912) (2,318,039) 1,708,741 4,392,190 - 1,008,301

Net changes in fund balances 650,348 (404,127) (635,383) 555,487 (136,393) (1,001,743) 1,962,672 (349,836) 641,025

Fund balances, beginning 2,685,667 458,240 1,171,890 822,674 611,727 3,896,896 624,514 643,653 10,915,261

Fund balances, ending 1 $ 3,336,015 $ 54,113 $ 536,507 $1,378,161 $ 475,334 $ 2,895,153 $2,587,186 $ 293,817 $11,556,286

The accompanjdng notes are an integral part of the basic financial statements.

12


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

Total net changes in fund balances at June 30, 2015 per Statement of Revenues, Expenditures and Changes in Fund Balances $ 641,025

The change in net position reported for governmental activities in the statement of activities is 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.

Capital outlay which is considered expenditures on Statement of Revenues, Expenditures and Changes in Fund Balances $ 5,689,663

Depreciation expense for the year ended June 30, 2015 (1,345,551) 4,344,112

Bond proceeds are reported as financing sources in governmental funds and thus contribute to the change in fund balance. In the statement of net position, however, issuing debt increases long-term liabilities and does not affect the statement of activities. Similarly, repayment of principal and capital leases are recorded as expenditures in the governmental funds but reduce liability in the statement of net position. Also governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities:

Proceeds fi-om issuance of bonds (3,500,000) Principal paid on long-term debt 1,574,000 Principal paid on capital lease 36,899 Amortization of bond discount (5,087) (1,894,188)

Governmental funds record bond interest expense when the payments are made. Bond interest payments owed for the current fiscal year which will be paid during the next fiscal year were accrued and are recorded as an expense in the statement of activities. (95,034)

Pension ejqrense not requiring the use of current economic sources and, therefore, not recorded as a fund expenditure 29,773

Non-employer's contributions to the municipal police employees retirement plan 7,377

Total changes in net position at June 30, 2015 per Statement of Activities $ 3,033,065

The accompanying notes are an integral part of the basic fmancial statements.

13


Statement of Net Position Proprietary Funds

June 30, 2015

The accompanying rwtes are an integral part of the basic financial statements.

14

Sports Utility Complex Fund Fund Total


Cash $ 915,978 $ 71,470 $ 987,448 Receivables:

Accounts receivable (net) 325,564 52,846 378,410 Accrued interest receivable 242 - 242 Due from other funds - 209 209 Other receivables 1,767 - 1,767 Inventory - 5,790 5,790

Prepaid Items 50,795 73,882 124,677

Total current assets 1,294,346 204,197 1,498,543

Noncurrent assets:

Restricted assets -Cash 1,691,003 - 1,691,003 Interest-bearing deposits, at cost 501,029 - 501,029

Capital assets: Land and construction in progress 1,620,305 3,478,525 5,098,830

Other capital assets, net of accumulated depreciation 17,150,590 17.598.464 34,749,054

Total noncurrent assets 20,962,927 21,076,989 42,039,916

Total assets 22,257,273 21,281,186 43,538,459


Accounts payable 218,114 81,525 299,639 Contracts payable 246,441 - 246,441 Retainage payable 104,552 - 104,552 Other liabilities 12,292 11,584 23,876 Due to other funds 501,425 1,038 502,463 Unearned revenue - 44,550 44,550 Payable from restricted assets -

Revenue bonds 290,000 - 290,000 Accrued interest 8,910 - 8,910

Total current liabilities 1,381,734 138,697 1,520,431

Noncurrent liabilities: Customers' deposits 309,823 - 309,823 Revenue bonds payable 3,854,000 - 3,854,000

Total noncurrent liabilities 4,163,823 - 4,163,823

Total liabilities 5,545,557 138,697 5,684,254

NE T POSITION Net investment in capital assets 15,273,021 21,076,989 36,350,010 Restricted for debt service 190,723 - 190,723 Restricted for water department operations 685,457 - 685,457 Unrestricted 562,515 65,500 628,015

Total net position $16,711,716 $21,142,489 $37,854,205


Statement of Revenues, Expenses, and Changes in Fund Net Position -Proprietary Funds

For the Year Ended June 30,2015

Sports Utility Complex Fund Fund Total

Operating revenues: Charges for services -

Water sales $ 1,319,107 $ $ 1,319,107 Sewer service charges 693,761 - 693,761 Sanitation charges 867,426 - 867,426 Recreation - 464,683 464,683

Miscellaneous 616,134 500 616,634

Total operating revenues 3,496,428 465,183 3,961,611

Operating expenses: Water department 1,910,409 - 1,910,409 Sewerage department 921,789 - 921,789 Sanitation department 867,503 - 867,503

Recreation department - 1,876,450 1,876,450

Total operating expenses 3,699,701 1,876,450 5,576,151

Operating loss (203,273) (1,411,267) (1,614,540)

Nonoperating revenues (expenses): Ad valorem taxes 282,279 - 282,279 Interest income 1,040 - 1,040 Interest expense (58,151) - (58,151) Loss on sale of capital assets (295) (1,167) (1,462)

Total nonoperating revenues (expenses) 224,873 (1,167) 223,706

Income (loss) before contributions and transfers 21,600 (1,412,434) (1,390,834)

Capital contributions 300,516 - 300,516

Transfers in 1,717,126 1,027,651 2,744,777

Transfers out (253,078) - (253,078)

Total transfers in (out) 1,464,048 1,027,651 2,491,699

Change in net position 1,786,164 (384,783) 1,401,381

Net position, beginning, as restated 14,925,552 21,527,272 36,452,824

Net position, ending $16,711,716 $21,142,489 $ 37,854,205


15


Statement of Cash Flows Proprietary Funds

For the Year Ended June 30,2015

Cash flows from operating activities: Receipts from customers Payments to suppliers Payments to employees Other receipts

Net cash provided (used) by operating activities

Cash flows from noncapital financing activities: Increase in cash overdraft Cash received from (paid to) other funds Transfers from other funds Transfers to other funds

Net cash provided by noncapital financing activities

Cash flows fi-om capital and related financing activities: Principal paid on revenue bonds payable Interest and fiscal charges paid on revenue bonds payable Net increase in customer deposits payable Acquisition of property, plant and equipment Proceeds from ad valorem taxes Proceeds from grants/capital contributions

Net cash used by capital and related financing activities

Cash flows from investing activities: Purchase of interest-bearing deposits Maturities of interest-bearing deposits Interest on investments

Net cash provided by investing activities

Net increase (decrease) in cash and cash equivalents

Cash and cash equivalents, beginning of period

Cash and cash equivalents, end of period

Utility Fund

Sports Complex

Fund Total

$ 2,988,581 (2,416,134) (516,616) 616,134

671,965

$ 419,587 (744,684) (491,376)

500

(815,973)

$ 3,408,168 (3,160,818) (1,007,992)

616,634

(144,008)

(275,736) 218,855

1,717,126 (253,078)

(1,614) 1,027,651

(275,736) 217,241

2,744,777 (253,078)

1,407,167 1,026,037 2,433,204

(282,000) (58,928) 30,688

(1,904,603) 282,279 767,196

(443,986)

(282,000) (58,928) 30,688

(2,348,589) 282,279 767,196

(1,165,368) (443,986) (1,609,354)

(167,071) 166,917

857

- (167,071) 166,917

857 703 - 703

914,467 (233,922) 680,545

2,026,472 305,392 2,331,864

$ 2,940,939 $ 71,470 $ 3,012,409

(continued)

16


Statement of Cash Flows Proprietary Funds - (Continued)

For the Year Ended June 30, 2015

Reconciliation of operating loss to net cash provided by operating activities:

Operating loss Adjustments to reconcile operating loss to net cash

provided by operating activities: Depreciation Changes in current assets and liabilities:

Increase in accounts receivable Decrease in unbilled utility receivable Increase in other receivables Increase in prepaid items Increase (decrease) in accounts payable Increase (decrease) in other liabilities

Increase in unearned revenue

Net cash provided (used) by operating activities

Reconciliation of cash and cash equivalents per statement of cash flows to the balance sheet:

Cash and cash equivalents, beginning of period -Cash - restricted Interest-bearing deposits - restricted Less: Interest-bearing deposits with a maturity

over three months

Total cash and cash equivalents, begirming of period

Cash and cash equivalents, end of period -Cash - unrestricted Cash - restricted Interest-bearing deposits - restricted Less: Interest-bearing deposits with a maturity

over three months

Total cash and cash equivalents, end of period

Net increase (decrease)

Utility Fund

Sports Complex

Fund Total

$ (203,273) $(1,411,267) $(1,614,540)

669,877 626,857 1,296,734

(16,156) (45,096) (61,252) 124,443 - 124,443 (1,767) - (1,767)

(21,615) (15,106) (36,721) 120,781 (16,665) 104,116

(325) 754 429 - 44,550 44,550

$ 671,965 $ (815,973) $ (144,008)

$1,623,476 305,392 $ 1,928,868 569,913 - 569,913

(166,917) (166,917)

2,026,472 305,392 2,331,864

915,978 71,470 987,448 1,691,003 - 1,691,003 501,029 - 501,029

(167,071) (167,071) 2,940,939 71,470 3,012,409

$ 914,467 $ (233,922) $ 680,545


17


Notes to Basic Financial Statements

(1) Summary of Significant Accounting Policies

The accompanying financial statements of the City of Youngsville (the City) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP) as applied to governmental units. GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note.

A. Financial Reporting Entity

The City of Youngsville was incorporated under the provisions of the Lawrason Act. The City operates under the Mayor-Board of Aldermen form of government.

This report includes all funds that are controlled by or dependent on the City executive and legislative branches (the Mayor and Board of Aldermen). Control by or dependence on the City was determined on the basis of budget adoption, taxing authority, authority to issue debt, election or appointment of governing body, and other general oversight responsibility.

Based on the foregoing criteria, certain governmental organizations are not part of the City and are thus excluded from the accompanying financial statements. These organizations include the Youngsville Volunteer Fire Department and the Youngsville Auxiliary Police Department. Although the City does provide facilities and some of their financing, no control is exercised over their operations.

B. Basis of Presentation

Government-Wide Financial Statements (GWFS)

The statement of net position and statement of activities display information about the reporting government as a whole. They include all funds of the reporting entity. The statements distinguish between govemmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities are fmanced in whole or in part by fees charged to external parties for goods or services.

The statement of activities presents a comparison between direct expenses and program revenues for the business-type activities of the City and for each fimction of the City's governmental activities. Direct expenses are those that are specifically associated with a program or function and, therefore, are clearly identifiable to a particular function. Program revenues include (a) fees, fines, and charges paid by the recipients of goods or services offered by the programs, and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues.

18


Notes to Basic Financial Statements (Continued)

Fund Financial Statements

The accounts of the City are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a separate set of self-balancing accounts. Fund accounting segregates funds according to their intended purpose and is used to aid management in demonstrating compliance with finance-related legal and contractual provisions. The minimum number of funds is maintained consistent with legal and managerial requirements.

The various funds of the City are classified into two categories: governmental and proprietary. The emphasis on fund financial statements is on major governmental and enterprise funds, each displayed in a separate column. A fund is considered major if it is the primary operating fund of the City or meets the following criteria;

a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type: and

b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

The major funds of the City are described below:

Governmental Funds -

General Fund

The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds


The 1968 Sales Tax Fund is used to account for the proceeds of a one percent sales and use tax that is legally restricted for expenditures for specific purposes.

1981 Sales TaxFund-

The 1981 Sales Tax Fund is used to account for the proceeds of a one percent sales and use tax that is legally restricted for expenditures for specific purposes.


The 1999 Sales Tax Fund is used to account for the proceeds of a half percent sales and use tax that is legally restricted for expenditures for specific purposes.

Recreational Facility Sales Tax Fund -

The Recreational Facility Sales Tax Fund is used to account for the proceeds of a one percent sales and use tax that is legally restricted for expenditures for specific purposes.

19



Debt Service Fund - General Obligation Bonds Fund -

The General Obligation Bonds Fund is used to accumulate monies for payment of the City's general obligation bonds, which are being financed by the 1968, 1999, and Recreational Facilities sales tax revenues, and ad valorem taxes.

Capital Projects Funds

Street Improvements and Construction Fund —

The Street Improvements and Construction Fund is used to account for the improvements and construction of various street projects using proceeds from grant revenue and issuance of bonds.

Recreational Facility Construction Fund -

The Recreational Facility Construction Fund is used to account for the construction of the recreational facility and multi-purpose community center using proceeds from grant revenue and issuance of bonds. During the fiscal year ended June 30, 2014, the recreational facility was completed and the assets were transferred to the Sports Complex Fund.

Proprietary Funds -

Enterprise Funds

Enterprise funds are used to account for operations (a) 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 (b) 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. The City of Youngsville's enterprise funds are the Utility Fund and the Sports Complex Fund.

Measurement Focus/Basis of Accounting

Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied.

Measurement Focus

On the government-wide statement of net position and the statement of activities, both governmental and business-type activities are presented using the economic resources measurement focus as defmed in item b. below.

In the frmd financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used as appropriate:

20



a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period.

b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position.

Basis of Accounting

In the government-wide statement of net position and statement of activities, both governmental and business-type activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, deferred outflows of resources, liabilities, and deferred inflows of resources resulting from exchange and exchange-like transactions are recognized when the exchange takes place.

Governmental fund fmancial 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 (including capital outlay) generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures are recorded only when payment is due.

The proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used.

D. Assets. Deferred Outflows. Liabilities. Deferred Inflows and Equitv

Cash and interest-bearing deposits

For purposes of the statement of net position, cash and interest-bearing deposits include all demand accounts, savings accounts, and certificates of deposits of the City. For the purpose of the proprietary fund statement of cash flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less.

Under state law, the City may invest in United States bonds, treasury notes, or certificates. Investments are stated at amortized cost.

21



Interfund receivables and payables

During the course of operations, numerous transactions occur between individual funds that may result in amounts owed between funds. Those related to goods and services type transactions are classified as "due to and from other hinds." Short-term interfund loans are reported as "interfund receivables and payables." Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds." Interfund receivables and payables between funds within governmental activities are eliminated in the statement of net position.

Receivables

In the government-wide statements, receivables consist of all revenues earned at year-end and not yet received. Major receivable balances for the governmental activities include sales and use taxes and franchise taxes. Business-type activities report customer's utility service receivables as their major receivables. Uncollectible utility service receivables are recognized as bad debts through the establishment of an allowance account at the time information becomes available which would indicate the uncollectibility of the particular receivable. The allowance for uncollectibles for customers' utility receivables was $54,114 at June 30, 2015. Unbilled utility service receivables resulting from utility services rendered between the date of meter reading and billing and the end of the month, are recorded at year end.

Inventories

Inventory of the Sports Complex Fund consists of supplies purchased which are valued at cost (first-in, first out).

Capital Assets

Capital assets, which include property, plant, equipment, and infrastructure assets, are reported in the applicable governmental or business-type activities columns in the government-wide or financial statements. Capital assets are capitalized at historical cost or estimated cost if historical is not available. Donated assets are recorded as capital assets at their estimated fair market value at the date of donation. The City maintains a threshold level of $ 1,000 or more for capitalizing capital assets.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets lives are not capitalized. Prior to July 1, 2001, governmental fimds' infrastructure assets were not capitalized. These assets have been valued at estimated historical cost.

Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of activities, with accumulated depreciation reflected in the statement of net assets. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:

Buildings 40 years Sports Complex 3 0 years Equipment 5 years Utility system and improvements 20-40 years Infrastructure 20 years

22



In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures in the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government-wide statements.

Restricted Assets

Restricted assets include cash, interest-bearing deposits and investments that are legally restricted as to their use. The restricted assets are related to capital projects constructions accounts, revenue bond accounts and utility meter deposits.

Deferred Outflows of Resources and Deferred Inflows of Resources

In some instances, the GASB requires a government to delay recognition of decreases in net position as expenditures until a future period. In other instances, governments are required to delay recognition of increases in net position as revenues until a future period. In these circumstances, deferred outflows of resources and deferred inflows of resources result from the delayed recognition of expenditures or revenues, respectively. The City recognizes deferred outflows of resources and deferred inflows of resources that are attributable to its pension plan.

Long-term debt

The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government-wide or fund financial statements.

All long-term debt to be repaid from governmental and business-type resources are reported as liabilities in the government-wide statements. The long-term debt consists primarily of the revenue bonds payable and utility meter deposits payable.

Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The debt proceeds are reported as other financing sources and payment of principle and interest reported as expenditures. The accounting for proprietary fund long-term debt is the same in the fund statements as it is in the government-wide statements.

Compensated Absences

Vacation and sick leave are recorded as expenditures of the period in which paid. Vacation must be taken in the year accrued and cannot be carried over. Sick leave is accumulated by employees at a rate dependent upon number of years of employment. Although sick leave is available for employees when needed, it does not vest nor is it payable at termination of employment. Therefore, no liability has been recorded in the accounts as of June 30, 2015.

23



Equity Classifications

In the government-wide statements, equity is classified as net position and displayed in three components:

a. Net investment in capital assets - Consists of net capital assets reduced by outstanding balances of any related debt obligations and deferred inflows of resources attributable to the acquisition, construction, or improvement of those assets and increased by balances of deferred outflows of resources related to those assets.

b. Restricted net position - Net position is considered restricted if the use is constrained to a particular purpose. Restrictions are imposed by external organizations such as federal or state laws or buyers of the City's debt. Restricted net position is reduced by liabilities and deferred inflows of resources related to the restricted assets.

c. Unrestricted net position - Consists of all other net position that does not meet the definition of the two components and is available for general use by the City.

In the fund financial statements, governmental fund equity is classified as fund balance. As such, fund balances of the governmental funds are classified as follows:

a. Nonspendable - amounts that cannot be spent either because they are in nonspendable form or because they are legally or contractually required to be maintained intact.

b. Restricted — amounts that can be spent only for specific purposes because of constitutional provisions or enabling legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or regulations of other governments.

c. Committed - amounts that can be used only for specific purposes determined by a formal decision of the City's Mayor and Board of Aldermen, which is the highest level of decision-making authority for the City.

d. Assigned - amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be used for specific purposes determined by a formal decision of the City's Mayor and Board of Aldermen.

e. Unassigned - all other spendable amounts.

24



When an expenditure is incurred for the purposes for which both restricted and unrestricted fund balance is available, the City considers restricted funds to have been spent first. When an expenditure is incurred for which committed, assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed funds, then assigned funds, and finally unassigned funds, as needed, unless the City has provided otherwise in their commitment or assignment actions.

Proprietary fund equity is classified the same as in the government-wide statements.

E. Revenues. Expenditures, and Expenses

Operating Revenues and Expenses

Operating revenues and expenses for proprietary funds are those that result from providing services and producing and delivering goods and/or services. It also includes all revenue and expenses not related to capital and related financing, noncapital financing, or investing activities.

Expenditures/Expenses

In the government-wide financial statements, expenses are classified by function for both governmental and business-type activities.

In the fund financial statements, expenditures are classified as follows:

Governmental Funds - By Character Proprietary Fund - By Operating and Noncperating

In the fund financial statements, governmental funds report expenditures of financial resources. Proprietary funds report expenses relating to use of economic resources.

Interfund Transfers

Permanent reallocations of resources between funds of the reporting entity are classified as interfund transfers. For the purposes of the statement of activities, all interfund transfers between individual governmental funds have been eliminated.

F. Revenue Restrictions

The City has various restrictions placed over certain revenue sources from state or local requirements. The primary restricted revenue sources include:

Revenue Source Legal Restrictions of Use

Sales Tax See Note 3 Water and Sewer Revenue Debt Service and Utility Operations

The City uses unrestricted resources only when restricted resources are fully depleted.

25



G. Capitalization of Interest Expense

It is the policy of the City of Youngsville to capitalize material amounts of interest resulting from horrowings in the course of the construction of capital assets. During the fiscal year ended June 30, 2015, there was no interest capitalized.

H. Bond Discount and Bond Issue Costs

Bond discount is being amortized by the straight-line method over the life of the related bond. Bond issue costs are expensed in the year they are incurred.

I. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates.

J. Report Reclassification

Certain previously reported amounts for the year ended June 30, 2014 have been reclassified to conform to the June 30, 2015 classifications.

(2) Ad Valorem Taxes

Ad valorem taxes attach as an enforceable lien on property as of January 1 of each year. The taxes are based on assessed values determined by the Tax Assessor of Lafayette Parish and are collected by the Sheriff. Taxes were billed to taxpayers by the Assessor in November and are due by December 31, becoming delinquent on January 1 of the following year. City property tax revenues are budgeted in the year billed.

For the year ended June 30, 2015, taxes of 11.68 mills were levied on property with assessed valuations totaling $94,976,151 and were dedicated for general corporate purposes (3.82 mills), fire protection (4.86 mills), and water services (3 mills).

Gross taxes levied for the current fiscal year totaled $1,109,321. The taxes are remitted to the City net of deductions for pension fund contributions.

(3) Sales and Use Tax

A. Proceeds of a 1 percent sales and use tax, accounted for in the 1968 Sales Tax Special Revenue Fund, (2015 collections $2,196,999) were rededicated on September 30, 2006 and are dedicated to constructing, acquiring, extending, improving and/or maintaining sewers and sewerage disposal works, waterworks, public streets, roads, alleys, sidewalks, and drainage facilities, including the purchase of equipment therefore. The tax proceeds may also be funded into bonds or used to pay any bonded or funded indebtedness of the City incurred for such capital purposes, to the extent and in the manner provided by state law. As of June 30, 2015, the net sales tax proceeds are dedicated to paying the City's $5,000,000 2009 Sales Tax Bonds and the $3,500,000 2014 Sales Tax Bonds.

26



B. Proceeds of a 1% sales and use tax levied by the City of Youngsville, accounted for in the 1981 Sales Tax Special Revenue Fund (2015 eollections $2,196,997, of which $1,092,039 was transferred to the General Fund as per special election) are dedicated to providing funds to maintain the City's police force and law enforcement facilities, including the acquisition of equipment and furnishings therefore, the construction and/or acquisition of buildings to house such facilities and paying employees' and policemen's salaries.

On November 15, 2012, a special election was held at which time the citizens of the City voted to rededicate 50% of the 1981 Sales Tax revenues to the General Fund for a period of two years beginning January 1, 2013 and ending December 31,2014. On November 6, 2014, the 50% rededication was approved as a permanent change. In addition to the uses authorized in the original sales tax dedication, the rededicated tax may be used to pay for constructing, improving, and maintaining works of public improvement and acquiring equipment therefore; construeting, acquiring, operating and maintaining fire protection facilities and acquiring equipment and furnishings therefore and paying fire department salaries and benefits.

C. Proceeds of a 1/2% percent sales and use tax, accounted for in the 1999 Sales Tax Special Revenue Fund, (2015 collections $1,098,499) beginning September 1, 2000 are dedicated for constructing, acquiring, improving, maintaining and operating sewers and sewerage disposal works for the City, and to be funded into bonds to pay the capital costs thereof, to the extent and in the manner provided by state law. As of June 30, 2015, the net sales tax proeeeds are dedieated to paying the City's $848,000 Sales Tax Refunding Bonds, the 2010 Sewer Revenue Bonds, and the Sewer Revenue Refunding Bonds.

D. Proeeeds of a 1% percent sales and use tax, accounted for in the Recreational Facility Sales Tax Special Revenue Fund, (2015 collections $2,190,972) beginning April 1, 2012 are dedicated for the payment of revenue bonds associated with the acquisition, construction and equipping of a Community Center and related infrastructure and recreational facilities and ongoing operation and maintenance expenses of the facilities, and for any and all other lawful purposes for which the tax may be expended. As of June 30, 2015, the net sales tax proceeds are dedicated to paying the City's $10,000,000 Recreational Facility Sales Tax Revenue Bonds, dated May 23, 2012, and the City's $9,500,000 Recreational Facility Sales Tax Revenue Bonds, dated May 2, 2013.

(4) Cash and Interest-Bearing Deposits

Under state law, the City may deposit funds within a fiscal agent bank organized under the laws of the State of Louisiana, the laws of any other state in the Union, or the laws of the United States. The City may invest in certificates and time deposits of the state banks organized under Louisiana law and national banks having principal offices in Louisiana. At June 30, 2015, the City had cash and interest-bearing deposits (book balances) totaling $14,462,850, as follows:

Non interest-bearing $ 7,054,249 Interest-bearing 6,773,392 Time deposits 635,209

Total $ 14,462,850

27



Custodial credit risk for deposits is the risk that in the event of the failure of a depository financial institution, the City's deposits may not be recovered or will not be able to recover collateral seciirities that are in the possession of an outside party. These deposits are stated at cost, which approximates market. Under state law, these deposits, (or the resulting bank balances) must be secured by federal deposit insurance or similar federal security or the pledge of securities owned by the fiscal agent bank. The market value of the pledged securities plus the federal deposit insurance must at all times equal the amount on deposit with the fiscal agent bank. These securities are held in the name of the City or the pledging fiscal agent bank by a holding or custodial bank that is mutually acceptable to both parties. Deposit balances (bank balances) at June 30,2015, are secured as follows:

Bank balances $ 14,640,359

Federal deposit insurance 1,631,457 Pledged securities 13,008,902

Total $ 14,640,359

Deposits in the amount of $13,008,902 were exposed to custodial credit risk. These deposits are uninsured and collateralized with securities held by the pledging institution's trust department or agent, but not in the City's name. The City does not have a policy for custodial credit risk.

(5) Investments

As of June 30, 2015, the City had investments in U.S. treasury obligations in the amount of $960,423, which represents 100% of the City's investments as of this date. They are being held as a temporary account for the construction of street improvement projects in the City. These investments mature in less than one year and are recorded at fair value. Fair value was determined by obtaining "quoted" year-end market prices. The investments are rated AAA by Standard and Poor's and are guaranteed by the U.S. government. Accordingly, there is no interest rate risk or credit risk associated with these investments.

For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The investments are in the name of the City. Accordingly, the City had no custodial credit risk related to investments at June 30, 2015. The City's does not have a policy for custodial credit risk.

(6) Receivables

Receivables at June 30, 2015 of $993,069 ($612,650 and $380,419 for governmental and business-type activities, respectively) consist of the following:

Recreational General 1968 Sales 1981 Sales Facilities Proprietary Fund Tax Fund Tax Fund Sales Tax Funds Total

Accounts (net) $ - $ - $ - $ - $ 378,410 $ 378,410 Sales tax - 425,468 - 168,989 - 594,457 Other 4,529 - 13,644 - 1,767 19,940 Interest - - ^ - 242 262

Totals $ 4,529 $425,468 $13,664 $ 168,989 $ 380,419 $ 993,069

28



(7) Due from Other Governmental Units

General Fund:

Due from the Louisiana Municipal Advisory and Technical Services Bureau for insurance occupational licenses for the months of May and June, 2015. $ 72,03 5

Due from the State of Louisiana for beer tax revenues for the year ending June 30, 2015. 7,480 Due from the Lafayette Parish Sheriffs office for ad valorem taxes for the fiscal year ended June 30, 2015 1,572

81,087 Street Improvements and Construction Fund: Due from the State of Louisiana Facilities Planning and Control for reimbursement of expenditures incurred for the Recreation Center 524 093

Total $ 605,180

(8) Restricted Assets

Restricted assets consisted of the following at June 30, 2015: Governmental Business-Type

Activities Activities Total Street improvements construction accounts $ 3,440,867 $ $ 3,440,867 Recreational Facility construction account 347,118 - 347,118 Street improvements - investments (project) 620,096 - 620,096 Bond and interest sinking account - investments 340,327 - 340,327 Bond and interest sinking account 826,893 175,836 1,002,729 Bond reserve account 1,809,847 193,795 2,003,642 Bond contingency account - 120,002 120,002 Customers' deposits - 309,823 309,823 Revenue bond construction account - 704,579 704,579 LCDBG sewer construction account - 2,540 2,540 Ad valorem tax water account - 685,457 685,457

Total restricted assets $ 7,385,148 $2,192,032 $ 9,577,180

29



(9) Capital Assets

Capital asset activity for the year ended June 30, 2015 was as follows:

Governmental activities: Capital assets not being depreciated:

Land Construction in progress

Other capital assets: Buildings Infrastructure Equipment

Totals

Less accumulated depreciation Buildings Infrastructure Equipment

Total accumulated depreciation

Governmental activities, capital assets, net

Business-type activities: Capital assets not being depreciated:

Land - sewer system Land - sports complex Construction in progress

Other capital assets: Buildings Water system Sewer system Machinery and equipment Sports complex

Totals

Less accumulated depreciation Sports complex Water system Sewer system Machinery and equipment

Total accumulated depreciation

Business-type activities, capital assets, net

Balance 07/01/14 Additions Deletions

Balance 06/30/15

$ 947,717 490,699

$ 150,954 5,029,915

S 1,108,051

$ 1,098,671 4,412,563

2,381,634 40,140,619 1,840,171

14,388 1,335,450

267,007 -

2,396,022 41,476,069 2,107,178

45,800,840 6,797,714 1,108,051 51,490,503

459,481 3,002,519 1,304,836

59,955 1,109,682

175,914

- 519,436 4,112,201 1,480,750

4,766,836 1,345,551 - 6,112,387

$41,034,004 $ 5,452,163 $ 1,108,051 $45,378,116

$ 241,745 3,471,000 3,031,150

$

1,698,611

$

3,343,676

$ 241,745 3,471,000 1,386,085

243,757 6,891,427

12,027,935 1,723,266

17,642,454

767,369 2,594,738

153,922 237,885

16,244

243,757 7,658,796

14,622,673 1,860,944

17,880,339

45,272,734 5,452,525 3,359,920 47,365,339

49,464 2,657,374 2,994,140

529,553

6,230,531

592,306 234,018 356,988 113,422

1,296,734

9,810

9,810

641,770 2,891,392 3,351,128

633,165

7,517,455

$39,042,203 $ 4,155,791 $ 3,350,110 $39,847,884

30

CITY OF YOCNGSVILLE, LOUISIANA


Construction in progress of $4,412,563 in the governmental activities consists mainly of work performed through June 30, 2015 on the Chemin Metairie Parkway Phase I emergency patching project ($1,136,055) and the Recreation Center ($3,045,119). Construction in progress of $1,386,085 in the business-type activities consists mainly of work performed through June 30, 2015 on a water storage tank project ($1,237,630) and various water and sewer projects.

Depreciation expense was charged to governmental activities as follows: General government $ 23,341 Police 118,450 Fire 491 Streets 1,203,269

Total depreciation expense $ 1,345,551

Depreciation expense was charged to business-type activities as follows: Water $ 301,803 Sewer 368,074 Recreation 626,857

Total depreciation expense $ 1,296,734

(10) Accounts. Salaries, and Other Payables

The accounts, salaries, and other payables consisted of the following at June 30, 2015:

Governmental Business-Type Activities Activities Total

Accounts $ 465,925 $ 299,639 $ 765,564 Contracts andretainage 1,900,409 350,993 2,251,402 Other liabilities 115,823 23,876 139,699

Totals $2,482,157 $ 674,508 $3,156,665

(11) Changes in Long-Term Debt

The following is a summary of long-term debt transactions of the City for the year ended June 30, 2015:

Governmental Business-type Activities Activities

General Obligation Capital Revenue

Bonds Lease Bonds Long-term debt payable, July 1,2014 $ 33,027,000 $ 100,378 $ 4,704,000

Long-term debt issued 3,500,000 Long-term debt retired (1,574,000) (36,899) (278,000)

Long-term debt payable, June 30,2015 $34,953,000 $ 63,479 $ 4,426,000

31



Long-term debt payable at June 30, 2015 is comprised of the following:

Current General Obligation bonds - Portion

$5,000,000 2009 Sales Tax Bonds, dated May 1, 2009; due in annual installments of $195,000 to $395,000 through May 1, 2029; interest at 4.475 percent, payable from 1968 sales tax revenues, rededicated in 2006. $ 4,015,000 $ 195,000

$8,140,000 2011 Revenue Bonds, dated June 1, 2011; due in annual installments of $160,000 to $480,000 through July 1, 2041; interest at 4.625 percent, payable from lawfully available funds. 7,685,000 160,000

$10,000,000 2012 Recreational Facility Sales Tax Revenue Bonds, dated May 23, 2012; due in annual installments of $375,000 to $680,000 through December 1, 2032; interest at 3.45 percent, payable from 2012 sales tax revenues. 9,285,000 375,000

$2,025,000 2012 Limited Tax Revenue Bonds, dated December 5, 2012; due in aimual installments of $211,000 to $243,000 through May 1, 2021; interest at 2.25 percent, payable from ad valorem tax revenues. 1,352,000 211,000

$848,000 2013 Sales Tax Refunding Bonds, dated January 31, 2013; due in annual installments of $75,000 to $87,000 through June 1, 2023; interest at 2.131 percent, payable from 1999 sales tax revenues.

646,000 75,000

$9,500,000 2013 Recreational Facility Sales Tax Bonds, dated May 2, 2013; due in annual installments of $395,000 to $570,000 through December 1, 2033; interest at 3.625 percent, payable from 2012 sales tax revenues. 8,590,000 395,000

$3,500,000 2014 Sales Tax Bonds, dated December 17, 2014; due in aimual installments of $290,000 to $325,000 through May 1, 2026; interest at 2.41 percent, payable from 1968 sales tax revenues, rededicated in 2006. 3,380,000 290,000

Total general obligation bonds payable 34,953,000 $ 1,701,000

Less: Discount on issuance of debt (91,574)

Net general obligation bonds payable $34,861,426

Capital leases -

$112,462 tractor lease dated February 14, 2014, due in monthly installments of $3,238, including interest at 2.35%, through February 14, 2017, secured by General Fundrevenuesandanassetwithacarryingvalueof$101,841. j 63 479

32



Revenue bonds

$4,429,000 Sewer Revenue Bonds, Series 2010 dated June 28, 2010; due in annual installments of $210,000 to $242,000 through May 1, 2031; interest at .95%; secured by Utility Fund revenues, 1968 sales tax revenues, rededicated in 2006, and 1999 sales tax revenues.

$600,000 Water Revenue Bonds, Series 2009 dated April 6, 2009; due in annual installments of $40,000 to $55,000 through May 1, 2024; interest at 3.73 percent; secured by Utility Fund revenues and 1968 sales tax revenues, rededicated in 2006.

$333,000 Sewer Revenue Refunding Bonds, Series 2009 dated June 25, 2009; due in annual installments of $40,000 to $42,000 through May 1, 2019; interest at 3.7 percent; secured by Utility Fund revenues, 1968 sales tax revenues, rededicated in 2006, and 1999 sales tax revenues.

Total revenue bonds payable

The long-term debt is due as follows:

Governmental Activities

Current Portion

$3,609,000 $ 210,000

410,000 40,000

125,000 40,000

$4,144,000 $ 290,000

Business-type Activities

Year ending June 30, 2016 2017 2018 2019 2020

2021-2025 2026-2030 2031-2035 2036-2040 2041-2042

Total

Bonds Capital Lease Bonds Principal Interest Principal Interest Principal Interest payments payments payments payments payments payments

$ 1,701,000 $ 1,155,265 $ 37,774 $ 1,086 $ 290,000 $ 36,159 1,743,000 1,114,961 25,705 227 294,000 32,242 1,790,000 1,071,645 - - 288,000 28,242 1,827,000 1,024,328 - - 270,000 24,529 1,889,000 973,188 - - 263,000 21,545 9,068,000 4,059,190 - - 1,321,000 19,210 8,285,000 2,575,109 - - 1,176,000 21,420 5,710,000 1,176,722 - - 242,000 1,089 2,000,000 484,725 - - - -

940,000 46,550 - - - -

$ 34,953,000 $ 13,681,683 $ 63,479 $ 1,313 $4,144,000 $ 184,436

(12) Prior Year Debt Defeasance

In prior years, the City defeased $520,000 of 1997 water revenue bonds by creating a separate irrevocable trust fund. The investments and fixed earnings fiom the investments are sufficient to fully service the defeased debt until the debt is called or matures. For financial reporting purposes, the debt has been considered defeased and therefore, has been removed as a liability from the City's financial statements. As of June 30, 2015, the amount of defeased water revenue debt outstanding but removed from the financial statements amounted to $115,000 of 1997 water revenue bonds.

33



(13) Flow of Funds: Restrictions on Use - Utilities and Sales Tax Revenues

Utility Revenue Bonds:

A. Under the terms of the bond indentures on outstanding Water Revenue Bonds, Series 2009 dated April 6, 2009, all income and revenues (hereinafter referred to as revenue) of every nature, earned or derived from operation of the Utility System, are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into a fund called the "City of Youngsville Water Revenue Bond Sinking Fund" (the "Sinking Fund") a sum equal to 1/6 of the interest falling due on the next interest payment date, and a sum equal to 1/12 of the principal falling due on the next principal date on all bonds payable from the Sinking Fund. Transfers from the Sinking Fund should be made to the paying agent bank at least three (3) days in advance of the date on which the payment of prineipal or interest falls due.

There shall also be set aside into a "City of Youngsville Water Revenue Bond Reserve Fund" (the "Reserve Fund) a sum equal to 20% of the amount required to be paid into the Sinking Fund for each month until such time as there has been accumulated tlierein a sum equal to the Reserve Fund requirement of $57,052. Such amounts may be used only for the payment of maturing bonds and interest on all bonds payable from the Sinking Fund as to which there would otherwise be default.

Funds will also be set aside into a "City of Youngsville Water Revenue Capital Additions and Contingencies Fund" (the "Contingencies Fund"), the sum of $20,000. Money in this fund may be used to care for extensions, additions, improvements, renewals and replacements necessary to properly operate the System. Money in this fund may also be used to pay principal or interest on the bonds falling due at any time there is not sufficient money for payment in the other bond funds. However, the balance may not fall below $10,000.

Additionally, rates should be established and collected in order to generate net operating revenue from the System each year at least equal to 130% of the Reserve Fund requirement.

B. Under the terms of the bond indentures on outstanding Sewer Revenue Bonds. Series 2010 dated June 28, 2010 and Sewer Revenue Refunding Bonds, Series 2009 dated June 25, 2009, all income and revenues (hereinafter referred to as revenue) of every nature, earned or derived from operation of the Utility System, are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

34



Each month, there will be set aside into a fund called the "Sewer Revenue Bond and Interest Sinking Fund" (the Sinking Fund"), an amount sufficient to pay promptly and fully the principal and interest on the outstanding bond by transferring monthly in advance on or before the 20^^ day of each month a sum equal to the total amount of principal and interest accruing on the bonds for said month. Transfers from the Sinking Fund should be made to the paying agent bank at least three (3) days in advance of the date on which the payment of principal or interest falls due.

There shall also be set aside into a "Sewer Revenue Bond Reserve Fund" (the "Reserve Fund") a sum equal to 25% of the amount required to be paid into the Sinking Fund for each month until such time as there has been accumulated therein a sum equal to the Reserve Fund requirement, which amounts to $136,220 through 2015. Such amount may be used only for the payment of maturing bonds and interest for which sufficient funds are not on deposit in the Sinking Fund and as to which there would otherwise be default.

Funds will also be set aside into a "Sewer Depreciation and Contingency Fund" (the "Contingency Fund") to care for depreciation, extensions, additions, improvements and replacements necessary to properly operate the System by transferring monthly in advance on or before the 20^ day of each month until a sum equal to five percent (5%) of the net revenues for the preceding month, until $100,000 is on deposit therein. Money in this fund shall be used to pay principal and interest on any bonds for the payment of which there is not sufficient money in the Sinking Fund or the Reserve Fund, but if so used, such money shall be replaced as soon as possible thereafter.

Additionally, rates should be established and collected in order to generate net operating revenue from the System each year at least equal to 125% of the Reserve Fund requirement.

All of the revenues received in any fiscal year and not required to be paid in such fiscal year into any of the above noted funds shall be regarded as surplus and may be used for any lawful corporate purpose.

Sales Tax Revenue Bonds:

C. Under the terms of the bond indentures on outstanding Sales Tax Bonds dated May 1, 2009 and May 1, 2014, all proceeds derived from the levy and collection of the 1968 sales tax are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into funds called the "Sales Tax Bond Sinking Fund, amounts constituting 1/12 of the interest, administrative fee, and principal due on the outstanding bonds for the bond year. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

35



There will be set aside into a fimd called the "Sales Tax Bond Reserve Fund" an amount of $414,158, a sum equal to the highest combined principal and interest in any future bond year. Such amounts may be used only for the payment of maturing bonds and interest for which sufficient funds are not on deposit in the Bond and Interest Sinking Funds and as to which there would otherwise be default.

D. Under the terms of the bond indentures on outstanding Recreational Facility Sales Tax Revenue Bonds dated May 23, 2012 and May 2, 2013, all proceeds derived from the levy and collection of the 2012 recreational facility sales tax are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special ftmds:

Each month, there will be set aside into funds called the "Sales Tax Bond Sinking Fund", amounts constituting 1/12 of the interest and principal due on the outstanding bonds for the bond year. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

There will be set aside into a fimd called the "Sales Tax Bond Reserve Fund" an amount of $1,349,745 a sum equal to the highest combined principal and interest in any future bond year. Such amounts may be used only for the payment of maturing bonds and interest for which sufficient funds are not on deposit in the Bond and Interest Sinking Funds and as to which there would otherwise be default.

E. Under the terms of the bond indenture on outstanding Sales Tax Refimding Bonds dated January 31, 2013, all proceeds derived from the levy and collection of the 1999 sales tax are pledged and dedicated to the retirement of said bonds, and are to be set aside into the following special funds:

Each month, there will be set aside into funds called the "Sales Tax Bond Sinking Fund - 2013", amounts constituting 1/12 of the interest and principal due on the outstanding bonds for the bond year. Such transfers shall be fully sufficient to assure the prompt payment of principal and interest installments as they become due and may be used only for such payments.

All of the above sales taxes were issued in perpetuity.

The City of Youngsville was in compliance with all significant limitations and restrictions in the bond indentures at June 30,2015.

(14) Pension Plan

For purposes of measuring the Net Pension Liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Municipal Police Employees' Retirement System (MPERS) of Louisiana, and additions to/deductions fi-om the systems' fiduciary net position have been determined on the same basis as they are reported by the systems. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

36



A. Municipal Police Employees' Retirement System of Louisiana (MPERS) -

Plan Description: The Municipal Police Employees' Retirement System is the administrator of a cost-sharing multiple-employer plan. Membership in MPERS is mandatory for any full-time police officer employed by a municipality of the State of Louisiana and engaged in law enforcement, empowered to make arrests, providing he or she does not have to pay social security and providing he or she meets the statutory criteria. MPERS provides retirement benefits for municipal police officers. The projections of benefit payments in the calculation of the total pension liability includes all benefits to be provided to current active and inactive employees through MPERS in accordance with benefit terms and any additional legal agreements to provide benefits that are in force at the measurement date. MPERS issues a publicly available financial report that may be obtained by writing to the Municipal Police Employees' Retirement System of Louisiana, 7722 Office Park Boulevard, Suite 200, Baton Rouge, Louisiana 70809, or by calling (225) 929-7411.

Benefit provisions are authorized within Act 189 of 1973 and amended by LRS 11:2211-11:2233. The following is a brief description of the plan and its benefits and is provided for general information purposes only. Participants should refer to the appropriate statutes for more complete information.

Membership Prior to January 1, 2013 - A member is eligible for regular retirement after he has been a member of MPERS and has 25 years of creditable service at any age or has 20 years of creditable service and is age 50 or has 12 years creditable service and is age 55. A member is eligible for early retirement after he has been a member of MPERS for 20 years of creditable service at any age with an actuarially reduced benefit. Benefit rates are three and one-third percent of average final compensation (average monthly earnings during the highest 36 consecutive months or joined months if service was interrupted) per number of years of creditable service, not to exceed 100% of final salary. Upon the death of an active contributing member, or disability retiree, the plan provides for surviving spouses and minor children. Under certain conditions outlined in the statutes, the benefits range from forty to sixty percent of the member's average final compensation for the surviving spouse. In addition, each child under age eighteen receives benefits equal to ten percent of the member's average final compensation or $200.00 per month, whichever is greater.

Membership Commencing January 1, 2013 - Member eligibility for regular retirement, early retirement, disability and survivor benefits are based on Hazardous Duty and Non Hazardous Duty sub plans. Under the Hazardous Duty sub plan, a member is eligible for regular retirement after he has been a member of MPERS and has 25 years of creditable service at any age or has 12 years of creditable service at age 55. Under the Non Hazardous Duty sub plan, a member is eligible for regular retirement after he has been a member of MPERS and has 30 years of creditable service at any age, 25 years of creditable service at age 55, or 10 years of creditable service at age 60. Under both sub plans, a member is eligible for early retirement after he has been a member of MPERS for 20 years of creditable service at any age, with an actuarially reduced benefit from age 55. Under the Hazardous and Non Hazardons Duty sub plans, the benefit rates are three percent and two and a half percent, respectively, of average final compensation (average monthly earnings during the highest 60 consecutive months or joined months if service was interrupted) per number of years of creditable service not to exceed 100% of final salary.

37



Upon death of an active contributing member, or disability retiree, the plan provides for surviving spouses and minor children. Under certain conditions outlined in the statues, the benefits r^ge from twenty-five to fifty-five percent of the member's average fmal compensation for the surviving spouse. In addition, each child under age eighteen receives ten percent of average final compensation or $200 per month whichever is greater. If deceased member had less than ten years of service, beneficiary will receive a refund of employee contributions only.

Cost of Living Adjustments:

The Board of Trustees is authorized to provide annual cost-of-living adjustments computed on the amount of the current regular retirement, disability, beneficiary or survivor's benefit, not to exceed 3% in any given year. The Board is authorized to provide an additional 2% COLA, computed on the member's original benefit, to all regular retirees, disability, survivors and beneficiaries who are 65 years of age or older on the cut-off date which determines eligibility. No regular retiree, survivor or beneficiary shall be eligible to receive a cost-of-living adjustment until benefits have been received at least one full fiscal year and the payment of such COLA, when authorized, shall not be effective until the lapse of at least one-half of the fiscal year. Members who elect early retirement are not eligible for a cost of living adjustment until they reach regular retirement age.

Deferred Retirement Option Plan:

A member is eligible to elect to enter the deferred retirement option plan (DROP) when he is eligible for regular retirement based on the members' sub plan participation. Upon filing the application for the program, the employee's active membership in MPERS is terminated. At the entry date into the DROP, the employee and employer contributions cease. The amount to be deposited into the DROP account is equal to the benefit computed under the retirement plan elected by the participant at date of application. The duration of participation in the DROP is thirty six months or less. If employment is terminated after the three-year period the participant may receive his benefits by lump sum payment or a true annuity. If employment is not terminated, active contributing membership into MPERS shall resume and upon later termination, he shall receive additional retirement benefit based on the additional service. For those eligible to enter DROP prior to January 1, 2004, DROP accounts shall earn interest subsequent to the termination of DROP participation at a rate of half of one percentage point below the percentage rate of return of MPERS's investment portfolio as certified by the actuary on an annual basis but will never lose money. For those eligible to enter DROP subsequent to January 1, 2004, an irrevocable election is made to earn interest based on MPERS's investment portfolio return or a money market investment return. This could result in a negative earnings rate being applied to the account.

If the member elects a money market investment return, the fiinds are transferred to a government money market account.

Initial Benefit Option Plan:

In 1999, the State Legislature authorized MPERS to establish an Initial Benefit Option program. Initial Benefit Option is available to members who are eligible for regular retirement and have not participated in DROP. The Initial Benefit Option program provides both a one-time single sum payment of up to 36 months of regular monthly retirement benefit, plus a reduced monthly retirement benefit for life. Interest is computed on the balance based on same criteria as DROP.

38



Contributions:

Contributions for all members are actuarially determined as required by state law but cannot be less than 9% of the employees' eamable compensation excluding overtime but including state supplemental pay.

For the year ended June 30, 2014, total contributions due for employers and employees were 41%. The employer and employee contribution rates for all members hired prior to January 1, 2013 and Hazardous Duty members hired after January 1, 2013 were 31% and 10%, respectively. The employer and employee contribution rates for all Non-Hazardous Duty members hired after January 1, 2013 were 33% and 8%, respectively. The employer and employee contribution rates for all members whose eamable compensation is less than or equal to the poverty guidelines issued by the United States Department of Health and Human Services were 33.5% and 7.5%, respectively. The actuarial required employer and employee combined contribution for June 30,2014 was 41.53%.

Non-employer contributions:

MPERS also receives insurance premium tax monies as additional employer contributions. The tax is considered support from a non-contributing entity and appropriated by the legislature each year based on an actuarial study. Non-employer contributions are recognized as revenue during the year ended June 30, 2015 and excluded fi-om pension expense.

Employer Allocations:

The schedule of employer allocations reports the required projected combined (employer and employee) contributions in addition to the employer allocation percentage. The required combined contributions are used to determine the proportionate relationship of each employer to all employers of MPERS. The employer's proportion was determined on a basis that is consistent with the manner in which contributions to the pension plan are determined. The allocation percentages were used in calculating each employer's proportionate share of pension amounts. The allocation method used in determining each employer's proportion was based on the combined (employer and employee) projected contribution effort to the plan for the next fiscal year as compared to the total of all employers' projected combined contribution effort to the plan for the next fiscal year. The combined projected contribution effort was actuarially determined by MPERS's actuary. The combined projected contribution effort was calculated by multiplying the projected future compensation of active members in MPERS on June 30, 2014 by the next fiscal year's combined actuarially required contribution rate. Projected future compensation was calculated by multiplying compensation by a payroll factor of 1.008.

Compensation was determined as follows:

a. Actual earned compensation for active members enrolled in MPERS the entire fiscal year, plus;

b. Annualized compensation for active members on June 30, 2014 enrolled in MPERS for a portion of the fiscal year. Aimualized compensation was calculated using actual compensation and the employee's date of hire.

The payroll factor was actuarially determined using salary assumptions for expected net changes in active members plus expected new hires and their payroll over the next fiscal year. The next fiscal year's net combined employer and employees' actuarially required contribution rate is 39.80%.

39



Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions:

At June 30, 2015, the City reported a liability of $277,519 for its proportionate share of the Net Pension Liability. The Net Pension Liability was measured as of June 30, 2014 and the total pension liability used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. The City's proportion of the Net Pension Liability was based on a projection of the City's long-term share of contributions to the pension plan relative to the projected contributions of all participating employers, actuarially determined. At June 30, 2014, the City's proportion was .044360%, which was an increase of .000868% from its proportion measured as of June 30, 2013.

For the year ended June 30, 2015, the City recognized pension expense of $38,509 less employer's amortization of change in proportionate share and differences between employer contributions and proportionate share of contributions, $212.

At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to MPERS from the following sources:

Governmental Activities

Difference between expected and actual experience Changes of assumptions Change in proportion and differences between the employer's

contributions and the employer's proportionate share of contributions

Net differences between projected and actual earnings on plan investments

Contributions subsequent to the measurement date Total

Deferred Outflows

of Resources $ -

11,191

68,070 $ 79,261

Deferred Inflows

of Resources $ 4,881

75

636

62,802

$ 68,394

Deferred outflows of resources of $68,070 related to MPERS resulting from the City's contributions subsequent to the measurement date will be recognized as a reduction of the Net Pension Liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows;

Year Ended June 30

2016 2017 2018

2019

$ (13,834) (13,834) (13,834) (15,701)

$ (57,203)

40



Actuarial Assumptions:

The net pension liability was measured as the portion of the present value of projected benefit payments to be provided through the pension plan to current active and inactive employees that is attributed to those employees' past periods of service, less the amount of the pension plan's fiduciary net position.

A summary of the actuarial methods and assumptions used in determining MPERS total pension liability as of June 30, 2014 are as follows:

Actuarial cost method Entry Age Normal Cost Expected remaining service lives 4 years Investment rate of return 7.5%, net of investment expense Inflation rate 3% Projected salary increases, 1 year of service: 10.00%

including inflation and merit 2 years of service: 6.00% 3-19 years of service: 4.30% 20-29 years of service: 5.50% 30 & over years of service: 4.00%

Mortality rates RP-2000 Employee Table for active members RP-2000 Healthy Annuitant Table for healthy annuitants RP-2000 Disabled Lives Mortality Tables for disabled annuitants

The mortality rate assumption used was set based upon an experience study performed by the prior actuary on plan data for the period July 1, 2003 through June 30, 2008 and review of similar law enforcement mortality. The data was then assigned credibility weighting and combined with a standard table to produce current levels of mortality. This mortality was then projected forward to a period equivalent to the estimated duration of the System's liabilities. Annuity values calculated based on this mortality were compared to those produced by using a setback of standard tables. The result of the procedure indicated that the tables used would produce liability values approximating the appropriate generational mortality tables.

Discount Rate:

The discount rate used to measure MPERS's net pension liability was 7.5%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rates and that contributions from participating employers will be made at the actuarially determined rates approved by PRSAC taking into consideration the recommendation of the System's actuary. Based on those assumptions, MPERS's fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability.

41



Sensitivity of the Employer's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate:

The following presents MPERS's net pension liability of the participating employers calculated using the discount rate of 7.5%, as well as what the employers' net pension liability would be if it were calculated using a discount rate that is one percentage point lower, or one percentage point higher than the current rate.

Current 1% Discount 1%

Decrease Rate Increase 6.50% 7.50% 8.50%

Net Pension Liability $ 400,691 $ 277,519 $ 174,067

Change in Net Pension Liability

The changes in MPERS's net pension liability for the year ended June 30, 2014 were recognized in the current reporting period as pension expense except as follows:

Differences between Expected and Actual E?q)erience - Differences between expected and actual experience with regard to economic or demographic factors in the measurement of the total pension liability were recognized in pension expense using the straight-line amortization method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan. The difference between expected and actual experience resulted in a deferred inflow of resources in the amount of $4,881 for the year ended June 30, 2014.

Differences between Projected and Actual Investment Earnings - Differences between projected and actual investment earnings on pension plan investments were recognized in pension expense using the straight-line amortization method over a closed five-year period. The difference between projected and actual investment earnings resulted in a deferred inflow of resources in the amount of $62,802 for the year ended June 30, 2014.

Changes of Assumptions or Other Inputs - Changes of assumptions about ftiture economic or demographic factors or of other inputs were recognized in pension expense using the straight-line amortization method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan. Changes of assumptions or other inputs resulted in a deferred inflow of resources in the amount of $75 for the year ended June 30,2014.

Change in Proportion - Changes in the employer's proportionate shares of MPERS's collective net pension liability and collective deferred outflows of resources and deferred inflows of resources since the prior measurement date were recognized in employer's pension expense (benefit) using a the straight-line amortization method over a closed period equal to the average of the expected remaining service lives of all employees that are provided pensions through the pension plan.

Contributions - Proportionate Share - Differences between contributions remitted to MPERS and the employer's proportionate share are recognized in pension expense (benefit) using the straight line amortization method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with a pension through the pension plan. The resulting deferred inflow/outflow and amortization is not reflected in the schedule of employer amounts due to differences that could arise between contributions reported by MPERS and contributions reported by the participating employer.

42

CITY OF YOUNGSVE.LE, LOUISIANA


(15) Retirement and Deferred Compensation

A. Social Security System

All City of Youngsville employees, with the exception of those participating in the Municipal Police Employees' Retirement System, participate in the Social Security System. The City and its employees contribute a percentage of each employee's salary to the System (7.65% contributed by the City, 7.65% by the employee). The City's contribution during the years ended June 30, 2015, 2014 and 2013 amounted to $159,477, $104,806, and $85,373 respectively.

B. Deferred Compensation Plan

The City offers its employees a deferred eompensation plan created in accordance with Internal Revenue Code (IRC) Section 457. The single employer plan, the City of Youngsville 457(B) Plan, administered by the Mass Mutual Financial Group, is available to all City employees, and permits them to defer a portion of their salary until fiiture years. The deferred compensation is not available to employees until termination, retirement, death, or unforeseeable emergency. The City contributes 5% of wages to each participating employee account. For the year ended June 30, 2015, the City and employees contributed $95,570 and $83,382 respectively. The City's contributions are not mandatory.

All amounts of compensation deferred under the plan, all property and rights purchased with those amounts, and all income attributable to those amounts, property, or rights are (until paid or made available to the employee or other beneficiary) held in a trust, custodial account or annuity contract described in IRC 457(g) for the exclusive benefit of the participants and their beneficiaries. The fair market value of the deferred compensation plan assets at June 30,2015 was $600,518.

(16) Segment Information for the Enterprise Funds

The City of Youngsville maintains one enterprise fund with three departments which provide water, sewerage and sanitation services. Segment information for the year ended June 30, 2015, was as follows:

Total Sports Water Sewerage Sanitation Utility Complex

Department Department Department Fund Fund Operating revenues $ 1,782,761 $ 825,907 $ 887,760 $3,496,428 $ 465,183

Operating expenses: Depreciation 301,803 368,074 - 669,877 626,857 Other 1,608,605 553,713 867,503 3,029,821 1,876,450

Total expenses 1,910,408 921,787 867,503 3,699,698 1,876,450

Operating income (loss) $ (127,647) $ (95,880) $ 20,257 $ (203,270) $(1,411,267)

43



(17) Compensation of Citv Officials

A detail of compensation paid to the Mayor and Board of Aldermen for the year ended June 30,2015 follows:

Wilson Viator, Mayor (7/1/14- 12/31/14) $ 37,100 Ken Ritter, Mayor (1/1/15-6/30/15) 28,355

Aldermen: Jamison Abshire (1/1/15-6/30/15) 4,601 TimBarbier (7/1/14- 12/31/14) 6,020 A.J. Bernard (7/1/14-12/31/14) 6,020 BrendaBurley (7/1/14-12/31/14) 6,650 Ken Ritter (7/1/14-12/31/14) 6,020 Matthew Romero (1/1/15-6/30/15) 4,601 Kenneth Stansbury (1/1/15-6/30/15) 4,601 Dianne McClelland (7/1/14-6/30/15) 11,103 Lauren Michel (1/1/15-6/30/15) 4,601

$119,672

Comnensation, Benefits, and Other Payments to Asencv Head

The schedule of compensation, benefits, and other payments to Wilson Viator, Mayor from July 1, 2014 through December 31, 2014 and Ken Ritter, Mayor from January 1, 2015 through June 30, 2015 follows:

Wilson Ken Viator Ritter

Salary $ 37,100 $ 28,355 Benefits - insurance 3,417 Benefits - retirement 1,855 1,418 Benefits - HSA contribution 260 Car allowance 6,000 6,000 Reimbursements 1,000 258 Conference travel 371 403 Cell phone 600 600

$ 50,603 $ 37,034

44



(19) Risk Management

The City is exposed to risks of loss in the areas of health care, general and auto liability, property hazards and workers' compensation. All of these risks are handled by purchasing commercial insurance coverage. There have been no significant reductions in the insurance coverage during the year, nor have settlements exceeded coverage for the past three years.

(20) Pending Litigation

At June 30,2015, the City was involved in several lawsuits claiming damages. In the opinion of the City's legal counsel, the only exposure to the City would be any costs in defense of the lawsuits with no liability in excess of insurance coverage.

(21) On-BehalfPavments of Salaries

During the year ended June 30, 2015, the State of Louisiana paid the City's policemen $96,699 of supplemental pay, which is included in the accompanying financial statements as intergovernmental revenues and public safety - police expenses/expenditures in the government-wide and 1981 Sales Tax Special Revenue Fund financial statements.

(22) Interfund Transactions

A. Receivables and Payables

Interfund receivables and payables consisted of the following at June 30, 2015:

Receivable Payable Major governmental funds:

General Fund $ 598,550 $ 87,279 1968 Sales Tax Special Revenue Fund 442,863 1,237,266 1981 Sales Tax Special Revenue Fund 246,292 145,851 1999 Sales Tax Special Revenue Fund 767,079 Recreational Facility Sales Tax Special Revenue 150,829 287 General Obligation Bonds Fund - 81,914 Street Improvements and Construction Fund 228,802 379,564

Total governmental funds 2,434,415 1,932,161

Proprietary Funds: Enterprise Fund - 501,425 Sports Complex Fund 209 1,038

Total proprietary funds 2^ 502,463

Total $ 2,434,624 $ 2,434,624

These balances resulted from short-term loans made to other funds. All interfund balances will be repaid within one year.

45



B. Transfers

Transfers consisted of the following at June 30,2015:

Transfers In Transfers Out Major governmental funds:

General Fund $ 628,002 $ 296,501 1968 Sales Tax Special Revenue Fund - 2,578,180 1981 Sales Tax Special Revenue Fund - -1999 Sales Tax Special Revenue Fund - 527,912 Recreational Facility Sales Tax Special Revenue - 2,318,039 General Obligation Bonds Fund 2,866,516 1,157,775 Street Improvements and Construction Fund 1,626,125 733,935

Total governmental funds 5,120,643 7,612,342

Proprietary Funds: Enterprise Fund 1,717,126 253,078 Sports Complex Fund 1,027,651 -

Total proprietary funds 2,744,777 253,078

Total $ 7,865,420 $ 7,865,420

Transfers are used to (a) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend them and to (b) use unrestricted revenues collected in the General Fund to finance various programs accounted for in other funds in accordance with budgetary authorizations.

(23) Prior Period Adjustments

In June 2012, the GASB approved Statement No. 68, "Accounting and Financial Reporting for Pensions." GASB Statement No. 68 addresses accounting and financial reporting for pensions that are provided to the employees of state and local governmental employers through pension plans that are administered through trusts or equivalent arrangements that meet the criteria established by this standard. The provisions of GASB Statement No 68 were implemented by the City during the year ending June 30,2015.

During the current year, it was determined that the Chemin Metairie water improvements project in the amount of $593,139 (which was in progress at June 30, 2014) was included in capital assets in governmental activities, rather than business-type activities and the Utility Fund.

The effect of the new accounting pronouncement and the reclassification of the capital asset resulted in a restatement of previously reported net position as follows:

Governmental Business-Type Utility Activities Activities Fund

July 1,2014 net position, as previously reported Change in accounting principle;

Net effect of recording net pension liability

Reclassification of capital asset

July 1, 2014 net position, as restated

46

$ 19,342,250 $ 35,859,685 $ 14,332,413

(303,802) -(593,139) 593,139 593,139

$ 18,445,309 $ 36,452,824 $ 14,925,552

REQUIRED SUPPLEMENTARY INFORMATION

47

CITY OF YOUNGSVILLE, LOUISIANA General Fund

Budgetary Comparison Schedule For the Year Ended June 3 0, 2015

Budget

Variance with Final Budget

Positive Original Final Actual (Negative)

Revenues: Taxes $2,055,000 $2,488,483 $2,439,172 $ (49,311) Licenses and permits 794,000 737,909 756,878 18,969 Intergovernmental 37,000 25,376 39,831 14,455 Fines and forfeits 300,000 231,347 227,848 (3,499) Miscellaneous 12,000 12,689 12,694 5

Total revenues 3,198,000 3,495,804 3,476,423 (19,381)


General government 1,295,727 1,446,218 1,459,954 (13,736) Public safety:

Fire 538,250 513,807 522,147 (8,340) Streets 639,861 655,777 725,074 (69,297)

Capital outlay 529,400 358,922 411,539 (52,617) Debt service - 38,862 38,862 -

Total expenditures 3,003,238 3,013,586 3,157,576 (143,990)

Excess of revenues over expenditures 194,762 482,218 318,847 (163,371)

Other financing sources (uses): Transfer from (to) Utility Fund - - 3,063 3,063 Transfer from 1968 Sales Tax Fund 381,755 600,000 600,000 -Transfer from Capital Projects Fund (450,000) 24,939 24,939 -Transfer to Debt Service Fund (138,383) (296,501) (296,501) -

Total other financing sources (uses) (206,628) 328,438 331,501 3,063

Net change in fund balance (11,866) 810,656 650,348 (160,308)

Fund balance, beginning 2,685,667 2,685,667 2,685,667 -

Fund balance, ending $2,673,801 $3,496,323 $3,336,015 $ (160,308)

48

CITY OF YOUNGSVILLE, LOUISIANA 1968 Sales Tax Special Revenue Fund

Budgetary Comparison Schedule For the Year Ended June 30, 2015

Budget



Revenues: Taxes Miscellaneous - interest

$2,000,000 $2,200,143 203

$2,196,999 191

$ (3,144) (12)

Total revenues 2,000,000 2,200,346 2,197,190 (3,156)


General government: Sales tax collection fees professional fees Office expense

7,800 6,600

100

12,800 11,330

13,111 9,970

56

(311) 1,360

(56)

Total expenditures 14,500 24,130 23,137 993

Excess of revenues over expenditures 1,985,500 2,176,216 2,174,053 (2,163)

Other financing uses: Transfer to Capital Projects Fund Transfer to Debt Service Fund

Transfer to General Fund

Transfer to Utility Fund

(878,182)

(381,755)

(725,658)

(436,875) (1,191,305)

(600,000)

(350,000)

(436,875) (1,191,305)

(600,000)

(350,000)

-

Total other financing uses (1,985,595) (2,578,180) (2,578,180) -

Net change in fund balance (95) (401,964) (404,127) (2,163)

Fund balance, beginning 458,240 458,240 458,240

Fund balance, ending $ 458,145 $ 56,276 $ 54,113 $ (2,163)

49


Budgetary Comparison Schedule For the Year Ended June 30,2015

Budget



Revenues: Taxes State of Louisiana:

On-behalf payments LACE fines and forfeitures Miscellaneous

$1,500,000

81,545

$1,131,555

96,930 12,000 5,713

$ 1,104,958

96,699 12,845

6,055

$ (26,597)

(231) 845 342

Total revenues 1,581,545 1,246,198 1,220,557 (25,641)


General government Police Capital outlay

Total expenditures

18,650 1,393,027

49,830

1,461,507

23,664 1,564,063

187,103

1,774,830

23,691 1,600,764

231,485

1,855,940

(27) (36,701) (44,382)

(81,110)

Excess (deficiency) of revenues over expenditures 120,038 (528,632) (635,383) (106,751)

Net change in fund balance 120,038 (528,632) (635,383) (106,751)

Fund balance, beginning 1,171,890 1,171,890 1,171,890 _

Fund balance, ending $1,291,928 $ 643,258 $ 536,507 $(106,751)

50




Total revenues


General government: Sales tax collection fees Professional fees Office expenditures

Excess of revenues over expenditures

Other financing uses: Transfer to Debt Service Fund Transfer to Capital Projects Fund Transfer to Utility Fund

Total other financing uses

Net change in fund balance

Fund balance, beginning

Fund balance, ending

Budget



$ 1,000,000 170

1,000,170

$ 1,128,779 101

1,128,880

$1,098,499 95

1,098,594

$(30,280) (6)

(30,286)

3,900 6,600

100

6,019 8,750

65

6,555 8,575

65

(536) 175

10,600 14,834 15,195 (361)

989,570 1,114,046 1,083,399 (30,647)

(88,322)

(1,000,000)

(88,322) (31,475)

(408,115)

(88,322) (31,475)

(408,115) -

(1,088,322) (527,912) (527,912) _

(98,752) 586,134 555,487 (30,647)

822,674 822,674 822,674

$ 723,922 $ 1,408,808 $ 1,378,161 $(30,647)

51

CITY OF YOUNGSVILLE, LOUISIANA Recreational Facilities Sales Tax Special Revenue Fund


Budget




$2,000,000 2,199,711 1,764

$2,190,972 1,944

$ (8,739) 180

Total revenues 2,000,000 2,201,475 2,192,916 (8,559)


General government: Sales tax collection fees Professional fees Office expenditures

7,800 20,000

100

10,758 11,258

12

(500)

(12)

Total expenditures 27,900 10,758 11,270 (512)

Excess of revenues over expenditures 1,972,100 2,190,717 2,181,646 (9,071)

Other financing sources (uses): Transfer to Sports Complex Fund Transfer to Debt Service Fund

(700,000) (1,288,888)

(1,071,171) (1,290,388)

(1,027,651) (1,290,388)

43,520

Total other financing uses (1,988,888) (2,361,559) (2,318,039) 43,520

Net change in fund balance (16,788) (170,842) (136,393) 34,449

Fund balance, begirming 611,727 611,727 611,727 _

Fund balance, ending $ 594,939 $ 440,885 $ 475,334 $34,449

52

CITY OF YOUNGSVILLE

Municipal Police Employees' Retirement System Schedule of Employees' Share of Net Pension Liability

For the Year Ended June 30, 2015*

Year ended

June 30,

2015

Employer Proportion

of the Net Pension

Liability (Asset)

0.044360%

Employer Proportionate Share of the Net Pension

Liability (Asset)

$ 277,519

Employer's Covered

Employee Payroll

$ 114,975

Employer's Proportionate Share of the Net Pension

Liability (Asset) as a Percentage of its

Covered Employee Payroll

241.4%

Plan Fiduciary Net Position

as a Percentage of the Total

Pension Liability

75.10%

* The amounts presented have a measurement date of the previous fiscal year end.

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

53

CITY OF YOUNGSVILLE

Municipal Police Employees' Retirement System Schedule of Employer Contributions For the Year Ended June 30, 2015

Year ended June 30,

2015

Contractually Required

Contribution

$ 68,070

Contributions in Relation to Contractual Required

Contribution

$ 68,070

Contribution Deficiency

(Excess)

Employer's Covered

Employee Payroll

$ 216,095

Contributions as a % of Covered

Employee Payroll

31.50%

This schedule is intended to show information for 10 years. Additional years will be displayed as they become available.

54


Notes to the Required Supplementary Information

(1) Budget and Budgetary Accounting

The City follows these procedures in establishing the budgetary data reflected in the financial statements:

1. Prior to June 15, the City Clerk submits to the Mayor and Board of Aldermen a proposed operating budget for the fiscal year commencing the following July 1.

2. A summary of the proposed budget is published and the public notified that the proposed budget is available for public inspection. At the same time, a public hearing is called.

3. A public hearing is held on the proposed budget at least ten days after publication of ftie call for the hearing.

4. After the holding of the public hearing and completion of all action necessary to finalize and implement the budget, the budget is adopted through passage of a resolution prior to the commencement of the fiscal year for which the budget is being adopted.

5. Budgetary amendments involving the transfer of funds from one department, program or function to another or involving increases in expenditures resulting from revenues exceeding amounts estimated require the approval of the Board of Aldermen.

6. All budgetary appropriations lapse at the end of each fiscal year.

7. Budgets for all funds are adopted on a basis consistent with generally accepted accounting principles (GAAP). Budgeted amounts are as originally adopted or as amended by the Board of Aldermen. Such amendments were not material in relation to the original appropriations.

(2) Pension Plan

Changes of Assumptions - Changes of assumptions about future economic or demographic factors or of other inputs were recognized in pension expense using the straight-line amortization method over a closed period equal to the average of the expected remaining service lives of all employees that are provided with pensions through the pension plan.

55


Notes to the Required Supplementary Information (Continued)

(3) Excess of Expenditures Over Appropriations

For the year ended June 30, 2015, the following funds had actual expenditures over appropriations, at the functional level, as follows:

Fund and Function Budget Actual General Fund:

Excess

General government $1,446,218 $1,459,954 $(13,736) Public safety 513,807 522,147 (8,340) Streets 655,777 725,074 (69,297) Capital outlay 358,922 411,539 (52,617)

1981 Sales Tax Special Revenue Fund: General government 23,664 23,691 (27) Public safety 1,564,063 1,600,764 (36,701) Capital outlay 187,103 231,485 (44,382)

1999 Sales Tax Special Revenue Fund: General government 14,834 15,195 (361)

Recreational Facilities Sales Tax Special Revenue Fund: General government 10,758 11,270 (512)

56

OTHER SUPPLEMENTARY INFORMATION

57


Statement of Net Position June 30, 2015

With Comparative Totals for June 30, 2014

2015 Governmental

Activities Business-Type

Activities Total ASSETS Current assets:

2014 Total

Cash and interest-bearing deposits $ 4,858,645 $ 987,448 $ 5,846,093 $ 4,514,252 Receivables, net 612,650 380,419 993,069 1,273,855 Internal balances 502,254 (502,254) - -Due from other governmental units 605,180 - 605,180 541,687 Inventory - 5,790 5,790 5,790 Prepaid items 74,566 124,677 199,243 129,883

Total current assets 6,653,295 996,080 7,649,375 6,465,467

Noncurrent assets: Restricted assets:

Cash and interest-bearing deposits 6,424,725 2,192,032 8,616,757 7,787,297 Investments 960,423 - 960,423 1,786,061

Capital assets: Land and construction in progress 5,511,234 5,098,830 10,610,064 8,182,311 Capital assets, net 39,866,882 34,749,054 74,615,936 71,893,896

Total noncurrent assets 52,763,264 42,039,916 94,803,180 89,649,565

Total assets 59,416,559 43,035,996 102,452,555 96,115,032

DEFERRED OUTFLOWS OF RESOURCES 79,261 . 79,261 -


Cash overdraft - - - 275,736 Accounts, salaries and other payables 2,482,157 674,508 3,156,665 2,722,385 Unearned revenue - 44,550 44,550 -Capital lease payable 37,774 - 37,774 36,899 Bonds payable 1,701,000 290,000 1,991,000 1,736,000 Accrued interest 264,471 8,910 273,381 179,124

Total current liabilities 4,485,402 1,017,968 5,503,370 4,950,144

Noncurrent liabilities:

Customers' deposits - 309,823 309,823 279,135 Capital leiise payable 25,705 - 25,705 63,479 Net pension liability 277,519 - 277,519 -Bonds payable 33,160,426 3,854,000 37,014,426 35,620,339

Total noncurrent liabilities 33,463,650 4,163,823 37,627,473 35,962,953

Total liabilities 37,949,052 5,181,791 43,130,843 40,913,097

DEFERRED INFLOWS OF REVENUES 68,394 _ 68,394 _

NET POSITION Net investment in capital assets 12,960,883 36,350,010 49,310,893 35,141,087 Restricted for debt service 2,630,682 190,723 2,821,405 4,235,828 Restricted for water fund operations - 685,457 685,457 194,086

Unrestricted 5,886,809 628,015 6,514,824 6,462,028 Total net position $21,478,374 $ 37,854,205 $59,332,579 $ 55,201,935

58


Balance Sheet General and Special Revenue Funds

June 30, 2015 With Comparative Totals for June 30, 2014

General

1968 Sales Tax Revenue



Recreational Facility Sales Tax Revenue

2015 2014 2015 2014 2015 2014 2015 2014 2015 2014 ASSETS

Cash and interest-bearing deposits $3,190,860 $ 2,422,634 $ 423,428 $ 548,588 $ 477,147 $1,065,377 $ 611,407 $ 46,122 $ 155,803 $126,139 Receivables:

Taxes - - 425,468 472,833 - - - - 168,989 189,133 Accrued interest - - - - 20 36 - - - -

Due from other governmental units 81,087 67,556 - - - - - - - -Due from other funds 598,550 347,367 442,863 703,644 246,292 219,116 767,079 776,552 150,829 300,000 Other 4,529 49,431 - - 13,644 - - - - -

Prepaid items 38,105 22,365 - - 36,461 19,562 - - - -

Total assets $3,913,131 $2,909,353 $ 1,291,759 $1,725,065 $ 773,564 $1,304,091 $ 1,378,486 $ 822,674 $475,621 $615,272

LIABILITIES AND FUND BALANCES Liabilities:

Accounts payable $ 422,486 $ 135,884 $ 380 $ 1,140 $ 42,734 $ 12,287 $ 325 $ $ - $ 3,258

Accrued liabilities 67,351 78,209 - - 48,472 27,865 - - - -

Due to other funds 87,279 9,593 1,237,266 1,265,685 145,851 92,049 - - 287 287

Total liabilities 577,116 223,686 1,237,646 1,266,825 237,057 132,201 325 - 287 3,545

Fund balances -Nonspendable (prepaid items) 38,105 22,365 - - 36,461 19,562 - - - -Restricted for sales tax

dedications - - 54,113 458,240 500,046 1,152,328 1,378,161 822,674 475,334 611,727

Unassigned 3,297,910 2,663,302 - - - - - - - -

Total fund balances 3,336,015 2,685,667 54,113 458,240 536,507 1,171,890 1,378,161 822,674 475,334 611,727

Total liabilities and fund balances $3,913,131 $2,909,353 $ 1,291,759 $1,725,065 $ 773,564 $1,304,091 $ 1,378,486 $ 822,674 $475,621 $615,272

59


Budgetary Comparison Schedule - Revenues For the Year Ended June 30, 2015

With Comparative Actual Amounts for the Year Ended June 30, 2014

2015 Variance with Final Budget

Budget Positive 2014 Original Final Actual (Negative) Actual

Taxes: Ad valorem taxes $1,000,000 $ 813,410 $ 804,981 $ (8,429) $ 721,405 Rededication from 1981 Sales Tax 500,000 1,131,555 1,092,039 (39,516) 1,026,926 Franchise - electric 450,000 429,400 429,399 (1) 417,259 Franchise - gas 45,000 43,935 42,569 (1,366) 33,604 Franchise - cable 60,000 70,183 70,184 1 58,465

2,055,000 2,488,483 2,439,172 (49,311) 2,257,659

Licenses and permits: Occupational licenses 14,000 16,450 16,725 275 14,775 Insurance occupational licenses 200,000 242,054 249,088 7,034 234,482 Codes and permits 580,000 479,405 491,065 11,660 590,494

794,000 737,909 756,878 18,969 839,751

Intergovernmental: Federal Grant -

FEMA - - - - 1,549 State of Louisiana -

Beer taxes 12,000 15,096 15,075 (21) 14,869 State grants 25,000 10,280 24,756 14,476 10,280

37,000 25,376 39,831 14,455 26,698

Fines and forfeits: Fines and court costs 300,000 231,347 227,848 (3,499) 235,392

Miscellaneous: Other sources 12,000 12,689 12,694 5 15,083

Total revenues $3,198,000 $ 3,495,804 $3,476,423 $ (19,381) $3,374,583

60


Budgetary Comparison Schedule - Expenditures For the Year Ended June 30, 2015


2015 Variance with Final Budget


General government: Administrative -

Compensation - mayor and council $ 124,420 $ 117,975 $ 119,672 $ (1,697) $ 116,280 Other salaries 88,836 132,837 139,576 (6,739) 100,130 Payroll taxes and retirement 24,502 30,868 30,883 (15) 17,959 Group insurance 31,969 33,877 28,355 5,522 31,996 Utilities and telephone 17,500 18,650 18,963 (313) 14,158 Mayor's expense 15,000 12,478 12,978 (500) 14,451 Advertising 20,000 20,015 20,009 6 20,561 Repairs and maintenance 25,000 23,498 31,100 (7,602) 18,000 Inspection fees 465,000 414,675 377,632 37,043 506,472 Dues and publications 1,000 3,038 8,346 (5,308) 792 Professional fees 100,000 87,025 83,618 3,407 72,271 General insurance 65,000 89,035 59,629 29,406 57,568 Office supplies 25,300 42,945 41,048 1,897 32,245 Computer expense 15,000 21,041 20,638 403 16,400 Janitorial expense 1,200 2,102 1,959 143 997 Convention expense 7,500 4,245 6,968 (2,723) 7,964 Community relations 20,000 25,675 15,331 10,344 18,684 Uniform expense 2,500 3,100 2,781 319 3,889 Engineering 120,000 115,539 203,536 (87,997) 88,883 Radio rent 3,500 700 700 - 840 Beepers 1,500 1,048 1,048 - 1,506 Contract services 55,000 113,327 111,212 2,115 114,926 Annexation 25,000 25,000 15,927 9,073 30,043 Mardi Gras expense 14,000 10,808 10,945 (137) -Miscellaneous 12,000 11,705 16,855 (5,150) 36,874

Total administrative 1,280,727 1,361,206 1,379,709 (18,503) 1,323,889

Magistrate court -Professional fees 15,000 18,602 10,425 8,177 9,990 Payroll taxes and retirement - 1,040 773 267 667 Court costs - 65,370 69,047 (3,677) -

Total magistrate court 15,000 85,012 80,245 4,767 10,657

Total general government 1,295,727 1,446,218 1,459,954 (13,736) 1,334,546

(continued)

61


Budgetary Comparison Schedule - Expenditures (Continued) For the Year Ended June 30, 2015


2015

Budget


Positive 2014 Original Final Actual (Negative) Actual

Public safety: Fire -

Appropriation to volunteer fire department (ad valorem taxes) 260,000 227,475 228,105 (630) 209,774

Insurance 8,000 8,000 7,766 234 8,014 Professional fees 10,000 8,440 14,215 (5,775) 11,490 Contract labor 260,000 269,732 272,061 (2,329) 201,427 Miscellaneous 250 160 - 160 no

Total fire 538,250 513,807 522,147 (8,340) 430,815

Streets and drainage: Salaries 164,197 178,644 180,207 (1,563) 159,816 Payroll taxes and retirement 27,831 22,550 19,506 3,044 24,544 Group insurance 16,633 33,078 33,935 (857) 16,647 General insurance 30,000 25,000 24,269 731 23,746 Contract labor 50,400 65,660 61,698 3,962 65,929 Telephone and utilities 12,000 15,480 11,408 4,072 11,223 Supplies, materials and repairs 175,000 168,000 194,774 (26,774) 173,445 Office supplies 1,000 1,504 1,573 (69) 910 Auto and truck expense 40,000 34,984 38,318 (3,334) 40,556 Street lighting 110,000 102,864 102,873 (9) 104,481 Engineering fees 4,800 6,547 55,758 (49,211) 6,697 Uniforms 500 145 145 - 458 Miscellaneous 7,500 1,321 610 711 5,135

Total streets and drainage 639,861 655,777 725,074 (69,297) 633,587

Capital outlay: General government -

Land 89,400 184,671 170,133 14,538 50,848 Fire - land - - 8,655 (8,655) 76,936 Highways and streets -

Equipment 440,000 174,251 232,751 (58,500) 114,862 Sidewalk improvements Vehicles

- - - - 10,280 35,562

Total capital outlay 529,400 358,922 411,539 (52,617) 288,488

Debt service: Retirement of principal - 36,899 36,899 - 21,643 Interest and fiscal charges - 1,963 1,963 - 916

Total debt service - 38,862 38,862 _ 22,559

Total expenditures $3,003,238 $3,013,586

62

$ 3,157,576 $(143,990) $2,709,995


Budgetary Comparison Schedule - Expenditures Forthe Year Ended June 30, 2015

With Comparative Actual Amounts forthe Year Ended June 30, 2014

2015 Variance with

Final Budget


General government-

Sales tax collection fees $ 7,800 $ 13,464 $ 13,111 $ 353 $ 7,575

Professional fees 10,850 10,200 10,580 (380) 15,055

Total general government 18,650 23,664 23,691 (27) 22,630

Public safety-

Police -

Salaries 696,607 823,463 829,235 (5,772) 680,649

On-behalf payments - salaries 81,545 96,930 96,699 231 87,751

Civil service salaries 10,775 9,706 9,000 706 -

Payroll taxes and retirement 128,000 155,533 178,248 (22,715) 125,639

Group insurance 68,000 98,936 93,123 5,813 69,765

Repairs and maintenance 25,000 37,901 28,385 9,516 11,956

Office supplies and expense 25,000 36,364 39,865 (3,501) 21,229 Dues and subscriptions 5,000 2,212 1,659 553 1,403

Telephone and utilities 30,000 41,533 43,138 (1,605) 35,921

Insurance 60,000 81,473 80,966 507 51,026

Auto expense 125,000 95,851 104,188 (8,337) 103,029

Uniforms and supplies 15,000 22,642 27,427 (4,785) 14,146

Contract labor - - 3,309 (3,309) -

Janitorial expense 600 - 56 (56) 65 Court expense 50,000 - 3,391 (3,391) 72,113 Training 5,000 860 860 • 3,804

Conference fees 3,000 1,970 1,970 - 1,668

Community relations 500 - - - -Professional fees 10,000 7,630 7,236 394 13,446

Animal control 48,000 13,274 13,274 - 58,768

Radio rent 4,000 30,577 37,325 (6,748) 1,995

Miscellaneous 2,000 7,208 1,410 5,798 223

Total public safety 1,393,027 1,564,063 1,600,764 (36,701) 1,354,596

Capital outlay-

Police autos - 130,385 130,385 - 77,364

Police equipment 49,830 44,718 89,498 (44,780) 54,430 Building improvement - police station - 12,000 11,602 398 -

Building improvement - fence - - - - 27,446

Total capital outlay 49,830 187,103 231,485 (44,382) 159,240

Total expenditures $1,461,507 $ 1,774,830 $ 1,855,940 $ (81,110) $ 1,536,466

63

CITY OF YOUNGSVILLE, LOUISIANA Debt Service Fund

General Obligation Bonds

Schedule of Revenues, Expenditures, and Changes in Fund Balance -Budget (GAAP Basis) and Actual For the Year Ended June 30, 2015


2015

Revenues (interest)

Expenditures: Debt service -

Retirement of principal Interest and fiscal charges

Total expenditures

Deficiency of revenues over expenditures

Other financing sources (uses): Transfers ftom 1968 Sales Tax Fund Transfers from 1999 Sales Tax Fund Transfers from Recreational Sales Tax Fund

Transfer from General Fund

Transfer from Utility Fund

Transfer to Sports Complex Fund Transfer to Street Improvements and

Construction Fund

Total other financing sources


Fund balance, begirming



Positive 2014 Budget Actual (Negative) Actual

$ 4,773 $ 5,108 $ 335 $ 5,290

1,574,000 1,574,000 1,518,000 1,144,041 1,141,592 2,449 627,430 2,718,041 2,715,592 2,449 2,145,430

(2,713,268) (2,710,484) 2,784 (2,140,140)

1,191,305 1,191,305 751,178 88,322 88,322 - 88,269

1,290,388 1,290,388 - 1,511,162

296,501 296,501 - 137,491

- - - 163,179

- - - (529,755)

(1,157,775) (1,157,775) _

1,708,741 1,708,741 2,121,524

(1,004,527) (1,001,743) 2,784 (18,616)

3,896,896 3,896,896 _ 3,915,512

$ 2,892,369 $2,895,153 $ 2,784 $3,896,896

64

CITY OF YOUNGSVILLE, LGUISIAF^A Capital Projects Fund

Street Improvements and Construction Fund



2015 Variance with

Revenues: Intergovernmental -

State of Louisiana: Department of Treasury

Miscellaneous -Donation - for Savoy Road Interest Other sources

Total revenues


General government: Professional fees Miscellaneous

Total general government

Debt service - bond issuance costs Capital outlay - streets -

Land - Savoy Road project Savoy Road project Chemin Metairie Parkway Phase II and III Chemin Metairie Roundabout reconstruction Street overlay Bonin and Chemin Metairie road improvements Downtown Improvements Miscellaneous street projects

Total capital outlay

Total expenditures

Deficiency of revenues over expenditures

Other financing sources (uses):

Bond proceeds

Transfer from Debt Service Fund

Transfer from 1968 Sales Tax Fund

Transfer from 1999 Sales Tax Fund

Transfer to General Fund

Transfer to Utility Fund

Total other financing sources (uses)


Fund balance, beginning


Final Budget Positive 2014

Budget Actual (Negative) Actual

$ $ $ - $ 1,474,897

. . 18,557 2,200 3,650 1,450 3,075 - 60 60 181

2,200 3,710 1,510 1,496,710

19,482 (19,482) 4,000 - 3,760 (3,760) -- 23,242 (23,242) 4,000

60,811 61,211 (400) .

29,383 29,383 225,000 202,419 22,581 1,770,129

1,183,376 1,136,055 47,321 1,185,508 506,622 506,397 225 -426,450 426,450 - -

- 4,048 (4,048) 1,786,352 - - - 574,141

50,473 44,023 6,450 111,952

2,421,304 2,348,775 72,529 5,428,082

2,482,115 2,433,228 48,887 5,432,082

(2,479,915) (2,429,518) 50,397 (3,935,372)

3,500,000 3,500,000 _ .

1,157,775 1,157,775 - -

436,875 436,875 - • 31,475 31,475 - -

(24,939) (24,939) - -(736,769) (708,996) 27,773 -

4,364,417 4,392,190 27,773 -

1,884,502 1,962,672 78,170 (3,935,372)

624,514 624,514 - 4,559,886

$2,509,016 $ 2,587,186 $ 78,170 $ 624,514

65

CITY OF YOUNGSVILLE, LOUISIANA Capital Projects Fund

Recreational Facility Construction Fund



2015

Budget Actual


Positive (Negative)

2014 Actual

Revenues: Intergovernmental -

State of Louisiana: Department of Treasury

Miscellaneous -Interest

Total revenues

$ 2,445,014

1,780 2,446,794

$ 2,345,300

2,846 2,348,146

$ (99,714)

1,066 (98,648)

$

20,125 20,125

Expenditures: Capital outlay - culture and recreation -

Recreational facility Recreational facility parking

2,730,000 76,870

2,646,112 51,870

83,888 25,000

290,148

Total expenditures 2,806,870 2,697,982 108,888 290,148

Deficiency of revenues over expenditures (360,076) (349,836) (207,536) (270,023)

Other financing use: Transfer to Sports Complex Fund (11,888,683)

Net change in fund balance (360,076) (349,836) (207,536) (12,158,706)

Fund balance, beginning 643,653 643,653 - 12,802,359

Fund balance, ending $ 283,577 $ 293,817 $ (207,536) $ 643,653

66

CITY OF YOUNGSVILLE, LOUISIANA Enterprise Fund

Utility Fund

Schedule of Number of Utility Customers (Unaudited)

June 30, 2015 and 2014

Records maintained by the City indicated the following number of customers were being served during the months of June 30,2015 and 2014:

Department 2015 2014

Water (metered) 4,341 4,097 Sewerage 3,406 3,100 Garbage 4,360 4,049

67


Schedule of Insurance in Force (Unaudited)

June 30, 2015

Description of Coverage

Policy Expiration

Date Coverage Amounts

Workmen's compensation: Employer's liability

Surety bonds: Position Bond

Automobile liability

Automobile comprehensive and collision coverage

Buildings, contents and machinery: Property coverage / wind and hail damage

Law enforcement officer's liability

Public official's errors and omissions

General liability

Equipment

Sports complex: Property coverage General liability (occurrence / aggregate) Excess liability Automobile liability

01/01/16

06/27/16

05/01/16

05/01/16

09/06/15

05/01/16

05/01/16

05/01/16

05/01/16

05/12/16 05/12/16 05/12/16 05/12/16

500,000

617,662

500,000

500,000

2,843,150

500,000

500,000

500,000

500,000

8,309,543 6,050,000 1,000,000 1,000,000

68


Combined Schedule of Interest-Bearing Deposits June 30, 2015

Sales Tax Funds: Iberia Bank -

Interest-bearing deposits Community First Bank -

Certificate of deposit Certificate of deposit Certificate of deposit

Total sales tax fimds

Street Improvements and Construction Capital Projects Fund: Gulf Coast Bank -

Interest-bearing deposits

Term

N/A

365 days 365 days 365 days

Maturity Date

N/A

07/09/15 07/09/15 07/09/15

Interest Rate

0.10% 0.10% 0,10%

Amount

various $ 155,803

115,993 115,993 115,993

503,782

N/A N/A various 3,419,933

Recreation Facility Construction Capital Projects Fund: Iberia Bank -


Debt Service Fimd: Iberia Bank -


Utility Fund: Whitney Bank -

N/A

N/A

N/A

N/A

various

various

347,118

2,636,740

Interest-bearing deposits N/A N/A various 213,798 Certificate of deposit 365 days 05/10/16 0.15% 17,027 Certificate of deposit 180 days 12/02/15 0.10% 20,113 Certificate of deposit 365 days 07/07/15 0.15% 27,266 Certificate of deposit 365 days 05/10/16 0.15% 8,838 Certificate of deposit 60 days 08/23/15 0.02% 7,048 Certificate of deposit 365 days 07/07/15 0.15% 9,118 Certificate of deposit 365 days 04/08/16 0.15% 34,322

Community First Bank -Certificate of deposit 365 days 01/03/16 0.10% 10,912 Certificate of deposit 365 days 10/22/15 0.10% 10,850 Certificate of deposit 365 days 01/03/16 0.10% 10,831 Certificate of deposit 365 days 01/01/16 0.10% 10,746

Farmers State Bank -

Certificate of deposit 365 days 10/20/15 0.20% 120,160 Total Utility Fund 501,029

Total all funds $ 7,408,602

69


Utility Fund


With Comparative Amounts for June 30,2014


Cash Receivables:

Accounts receivable (net) Unbilled utility receivables Accrued interest receivable Due from other governmental units Other receivables Prepaid items

Total current assets

Noncurrent assets: Restricted assets -

Cash Interest-bearing deposits, at cost

Capital assets: Land and construction in progress Other capital assets, net of accumulated depreciation

Total noncurrent assets

LIABILITIES

Total assets

Current liabilities: Cash overdraft Accounts payable Contracts payable Retainage payable Other liabilities Due to other funds Payable from restricted assets -

Revenue bonds Accrued interest

Total current liabilities

Noncurrent liabilities: Customers' deposits Revenue bonds payable

Total noncurrent liabilities

Total liabilities

NET POSITION Net investment in capital assets Restricted for debt service Restricted for water department operations Unrestricted

Total net position

2015

915,978

325,564

242

1,767 50,795

1,294,346

1,691,003 501,029

1,620,305 17,150,590

20,962,927

22,257,273

218,114 246,441 104,552 12,292

501,425

290,000 8,910

1,381,734

309,823 3,854,000

4,163,823

5,545,557

15,273,021 190,723 685,457 562,515

2014

309,408 124,443

59 350,274 116,406 29,180

929,770

1,623,476 569,913

3,272,895 14,447,030

19,913,314

20,843,084

275,736 97,333

440,889 93,565 12,617

282,570

282,000 9,687

1,494,397

279,135 4,144,000

4,423,135

5,917,532

14,087,391 532,164 394,757 (88,760)

$ 16,711,716 $ 14,925,552

70


Utility Fund

Departmental Statement of Revenues and Expenses For the Year Ended June 30, 2015

With Comparative Amounts for the Year Ended June 30, 2014

Totals 2015 2014

Operating revenues: Customer service charges $ 2,880,294 $ 2,633,686 Miscellaneous 616,134 519,896

Total operating revenues 3,496,428 3,153,582

Operating expenses: Salaries 403,586 383,604 Payroll taxes and retirement 50,031 47,353 Group insurance 62,999 67,442 Sewer tests 29,608 20,630 Water purchases 555,972 434,304 Maintenance and repairs 584,716 569,164 Contract labor/ maintenance fees 72,775 70,071 Utilities and telephone 101,583 130,425 Professional fees 60,084 43,683 Engineering fees 120,664 21,171 General insurance 82,515 78,961 Office expense 1,514 733 Supplies and parts 86,274 72,373

Garbage collection fees 774,519 736,687 Depreciation 669,877 605,221 Miscellaneous 42,984 23,109

Total operating expenses 3,699,701 3,304,931

Operating income (loss) (203,273) (151,349)

Nonoperating revenues (expenses): Ad valorem taxes 282,279 253,466 Interest income 1,040 815 Interest expense (58,151) (62,798) Loss on sale of capital assets (295) -Amortization - loss on bond refunding - (14,957)

Total nonoperating revenues (expenses) 224,873 176,526

Income before contributions and operating transfers 21,600 25,177

Capital contributions 300,516 537,842

Transfers in (out):

Transfers in 1,717,126 2,117,247

Transfers out (253,078) (163,179)

Total transfers in (out) 1,464,048 1,954,068

Change in net position 1,786,164 2,517,087

Net position, beginning as restated 14,925,552 12,408,465

Net position, ending $16,711,716 $ 14,925,552

71

"Water Sewerage Sanitation 2015 2014 20I5 2^4 2^5 2014

1,319,107 $1,206,384 $ 693,761 $ 658,320 $ 867,426 $ 768,982 463,654 388,833 132,146 118,114 20,334 12,949

1,782,761 1,595,217 825,907 776,434 887,760 781,931

264,056 211,951 97,897 137,517 41,633 34,136 32,502 25,944 12,263 17,176 5,266 4,233 34,316 37,151 19,914 25,288 8,769 5,003

29,608 20,630 555,972 434,304 . _ . . 483,937 473,897 100,779 95,267

1,496 72,775 68,575 18,520 28,960 83,063 101,465 43,189 26,928 16,895 16,755 47,071 1,924 73,593 19,247 57,199 46,440 25,316 32,521 1,514 695 - 38 - -

45,432 51,543 12,921 20,830 27,921 774,519 736,687

301,803 295,665 368,074 309,556 24,898 15,968 8,691 3,306 9,395 3,835

1,910,409 1,652,866 921,789 868,171 867,503 783,894

(127,648) $ (57,649) $ (95,882) $ (91,737) $ 20,257 $ (1,963)

72


Sports Complex Fund


With Comparative Amounts for June 30, 2014


Cash Receivables:

Accounts receivable (net) Due from other funds Inventory Prepaid items

Total current assets

Noncurrent assets: Restricted assets -

Cash Interest-bearing deposits, at cost

Capital assets: Land and construction in progress Other capital assets, net of accumulated depreciation

Total noncurrent assets

Total assets

Current liabilities: Accounts payable Contracts payable Other liabilities Due to other funds

Unearned revenue

Total current liabilities

LIABILITIES

NET POSITION Net investment in capital assets Unrestricted

Total net position

2015

52,846 209

5,790 73,882

204,197

3,478,525 17.598.464

21,076,989

21,281,186

81,525

11,584 1,038

44,550

138,697

21,076,989 65,500

2014

71,470 $ 305,392

7,750 209

5,790 58,776

377,917

3,471,000 17,851,278

21,322,278

21,700,195

98,190 61,251 10,830 2,652

172,923

21,261,027 266,245

$21,142,489 $21,527,272

73


Sports Complex Fund

Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended June 30, 2015

With Comparative Amounts for the Year Ended June 30, 2014

Totals 2015 2014

Operating revenues: Charges for services -

Sponsorship fees Tournament and league income Concession sales Gate fees Tennis fees

Miscellaneous

Total operating revenues

Operating expenses:

Nonoperating expenses:

Loss on disposal of ^sets

Loss before capital contributions and transfers

Capital contributions

Transfers in

Change in net position

Net position, beginning

Net position, ending

209,069 139,344 65,179 46,422 4,669 500

465,183

(1,412,434)

1,027,651

(384,783)

21,527,272

121,142,489

82,422 8,997

623

92,042

Salaries 386,508 191,491 Payroll and retirement 48,166 22,743 Group insurance 56,702 14,687 Advertising 15,117 65,549 Auto expense 21,130 12,904 Awards 3,033 1,533 Computer expense 8,729 3,053 Conference fees 2,218 4,372 Contract labor 79,294 18,418 Depreciation expense 626,857 52,925 Engineering - 1,072 Equipment expense 73,139 7,882 General insurance 37,332 79,519 Legal fees 2,405 10,126 Office supplies and expense 13,634 9,239 Repairs and maintenance 123,289 19,444 Security expense 62,445 -Sponsorship fees 97,995 65,000 Supplies 45,422 49,262 Telephone and utilities 99,249 18,416 Tournament fees 20,419 14,450 Umpire fees 49,379 5,070

Uniforms 3,988 1,291

Total operating expenses 1,876,450 668,446

Operating loss (1,411,267) (576,404)

(576,404)

3,471,000

13,481,008

16,375,604

5,151,668

$21,527,272

74

INTERNAL CONTROL,

COMPLIANCE, AND

OTHER MATTERS

75

C. Burton Kolder, CPA" Russell F. Champagne, CPA* Victor R. Slaven, CPA* Gerald A. Thibodeaux, Jr., CPA* Robert S. Carter, CPA* Arthur R. Mixon, CPA* Brad E. Kolder, CPA, JD* Stephen J. Anderson, CPA* Penny Angelle Soruggins, CPA Christine C. Doucet, CPA Wanda F. Arcement, CPA, CVA Bryan K. Joubert, CPA Matthew E. Margagllo, CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

OFFICES

Casey L Ardoin, CPA Allen J. LaBry, CPA Albert R. Leger, CPAPFS,CSA* Marshall W. Guldry, CPA Stephen R. Moore, Jr., CPA,PFS,CFP® ChFC® James R. Roy, CPA Robert J. Metz, CPA Alan M. Taylor, CPA Kelly M. Doucet, CPA Mandy B. Self, CPA Paul L. Delcambre, Jr., CPA Jane R. Hebert, CPA Deidre L. Stock, CPA Karen V. Fontenot, CPA

" A Professional Accounting Corporation

INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL

REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

183 South Beadle Rd. Lafayette, LA 70508 Phone (337) 232-4141 Fax (337) 232-8660


1234 David Dr. Ste 203 Morgan City, LA 70380 Phone (985) 384-2020 Fax (985) 384-3020

434 East Main Street Viile Platte, LA 70586 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberlin, LA 70655 Phone (337) 639-4737 Fax (337) 639-4568

450 East Main Street New Iberia, LA 70560

Phone (337) 367-9204 Fax (337) 367-9208


Phone (337) 893-7944 Fax (337) 893-7946


Phone (337) 828-0272 Fax (337) 828-0290

133 EastWaddii St. Marksvlile LA 71351

Phone (318) 253-9252 Fax (318)253-8681


Phone (318) 442-4421 Fax (318) 442-9833

WEBSITE WWW.KCSRCPAS.COM

Retired: Conrad 0. Chapman, CPA* 2006

The Honorable Ken Ritter, Mayor and Members of the Board of Aldermen

City of Youngsville, Louisiana

We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, and each major fund of the City of Youngsville, Louisiana (the City) as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City's basic financial statements and have issued our report thereon dated December 15, 2015.

Interna! Control Over Financial Reporting

In planning and performing our audit of the financial statements, we considered the City's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal control.

Our consideration of internal control was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan, we identified a certain deficiency in internal control that we consider to be a material weakness.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan as item 2015-001(IC) to be a material weakness.

Member of: WvlERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS 76



Compliance and Other Matters

As part of obtaining reasonable assurance about whether the City's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that is required to be reported under Goyernment Auditing Standards.

We also noted certain matters concerning financial operations that we have reported to the management of the City in a separate letter dated December 15, 2015.

The City of Youngsville, Louisiana's Response to Findings

The City's response to the findings identified in our audit is described in the accompanying summary schedule of current and prior year audit findings and management's corrective action plan. The City's response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it.

Purpose of this Report

This report is intended solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control and compliance. This report is an integral part of an audit performed in accordance with Government Auditing Statements in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Under Louisiana Revised Statute 24:513, this report is distributed by the Louisiana Legislative Auditor as a public document.

Koldery Champagne, Slaven <£ Company, LLC Certified Public Accountants


Member of: Member of: AMERICAN INSTITUTE OF SOCIETY OF LOUISIANA CERTIFIED PUBLIC ACCOUNTANTS / / CERTIFIED PUBLIC ACCOUNTANTS

CITY OF YOUNGSVTLLE, LOUISIANA

Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan Year Ended Jime 30,2015

Ref. No.

Fiscal Year Finding Initially

Occurred Description of finding

Corrective Action Taken

CURRENT YEAR (6/30/15) -

Internal Control: 2015-001(IC)

Management Letter: 2015-002(ML) 06/30/12

2015-003 (ML) 06/30/12

Due to the small number of employees, the City of Youngsville did not have adequate segregation of functions within the accounting system.

At 6/30/15, it was noted that the City maintains approximately $7,000,000 of non-interest bearing cash accounts. The City should invest any excess cash balances in order to maximize interest earnings.

Due to the increasing size of the City's operations, it appears that the current software being utilized may not be sufficient to effectively and efficiently record transactions in an accurate manner to provide financial information to management officials.

No

No

Corrective Action Planned

N/A No response is considered necessary.

The City will consider investing excess cash balances.

In October 2015, management entered into a contract for the purchase of accounting software which will process information in an efficient and accurate manner.

Anticipated Name of Completion

Contact Person Date

Ashley Sexton, City Treasurer



N/A

Immediately

Immediately

2015-004(ML) 06/30/13 The City's water and sewer departments experienced operating losses of $127,648 and $95,882, respectively. Consideration should be given to increasing rates and/or decreasing expenses in these departments in order to generate a profit.

No Management will evaluate die current Ashley water and sewer charges, and will closely Sexton, City monitor the operating expenses in these Treasurer departments and make necessary changes.

Immediately

(continued)

78


Ref. No. PRIOR YEAR (6/30/14) -

Internal Control:

2014-001 (IC)

2014-002(10) 06/30/08

Summary Schedule of Current and Prior Year Audit Findings

and Corrective Action Plan (Continued)

Year Ended June 30,2015

Fiscal Year

Finding

Initially Occurred Description of finding


Due to the small number of employees, the City of Youngsville did not have adequate segregation of functions within the accounting system.

The City does not have a staff person who has the qualifications and training to apply generally accepted accounting principles (GAAP) in recording the entity's financial transactions or preparing its financial statements, including the related notes.


Anticipated Name of Completion

Contact Person Date

N/A No response is considered necessary.

Yes The City has evaluated the cost vs. benefit of establishing internal controls over the preparation of financial statements in accordance widi GAAP, and determined that it is in the best interests of the government to outsource this task to its independent auditors, and to review the draft financial statements and notes prior to approving them and accepting responsibility for their contents and presentation.

Becky L.

Gondron,

City Clerk

Becky L.

Gondron,

City Clerk

N/A

N/A

2014-003 (IC) 6/30/2013

Compliance

2014-004(C) 06/30/14

The City does not have adequate controls over Partial recordation of transactions and monthly reconciliations of account balances. Specifically, in the areas of utility accounts receivable and customer meter deposits, monthly reconciliations to subsidiary ledgers are not being properly reconciled. Variances must be investigated to determine the source of the differences.

The City did not comply with R.S. 38:2212-2296 Yes (the public bid law) when it failed to properly

advertise and obtain bids for a truck for the street department.

Management will implement adequate

controls over recordation of transactions and monthly reconciliations of account balances. All variances will be investigated to determine the source of the differences.

The City will comply with the requirements of the public bid law in the future.

Becky L.

Gondron,

City Clerk

Immediately

Becky L.

Gondron,

City Clerk

Immediately

(continued)

79


Summary Schedule of Current and Prior Year Audit Findings and Corrective Action Plan (Continued)

Year Ended June 30, 2015

Ref. No.

Fiscal Year Finding Initially

Occurred Description of finding


PRIOR YEAR (6/30/14) (continued) --

Management Letter: 2014-005(ML) 06/30/12 At 6/30/14, it was noted that die City

maintains approximately $7,400,000 of non-interest bearing cash accounts. The City should invest any excess cash balances in order to maximize interest earnings.

No


The City will consider investing excess cash balances.

Name of Contact Person

Becky L. Gondron, City Clerk

Anticipated Completion

Date

Immediately

2014-006(ML) 06/30/12 Due to the increasing size of the City's operations, it appears that the current software being utilized may not be sufficient to effectively and efficiently record transactions in an accurate manner to provide financial information to management officials.

No Management will consider enhancing the current software programs or purchasing software which will process information in an efficient and accurate manner. Additional accounting consultations will also be evaluated in order to improve the financial reporting system.

Becky L. Gondron, City Clerk

Immediately

2014-007(ML) 06/30/13 The City's water and sewer departments experienced operating losses of $57,649 and $91,737, respectively. Consideration should be given to increasing rates and/or decreasing expenses in these departments in order to generate a profit.

No Management will evaluate the current Becky L. water and sewer charges, and will Gondron, closely monitor the operating expenses City Clerk in these departments and make necessary changes.

Immediately

80

C. Burton Kolder, CPA* Russell F. Chatnpegne, CPA* Victor R. Slaven, CPA* Gerald A Tliibodeaux, Jr., CPA* Robert S. Carter, CPA* Arthur R. MIxon, CPA* Brad E. Kolder, CPA, JD* Stephen J. Anderson, CPA* Penny Angelle Scruggins, CPA Christine C. Ooucet, CPA Wanda F. Arcement, CPA, CVA

Bryan K. Joubert, CPA Matthew E. Margaglio, CPA

KOLDER, CHAMPAGNE, SLAVEN & COMPANY, LLC CERTIFIED PUBLIC ACCOUNTANTS

OFFICES

P. O. Box 82329

Lafayette, LA 70598

Rhone (337)232-4141 Fax (337) 232-8660

Casey L. Ardoln, CPA Albert R. Leger, CPAPFS,CSA* Marshall W. Guldry, CPA Stephen R. Moore, Jr., CPA,PFS,CFP*,ChFC* James R. Roy, CPA Robert J. Metz, CPA Alan M. Taylor, CPA Kelly M. Doucet, CPA Mandy B. Self, CPA Paul L. Delcambre, Jr., CPA Jane R, Hebert, CPA Deidre C. Stock, CPA Karen V. Fontenot. CPA

MANAGEMENT LETTER

183 South Beadle Rd. Lafayette, LA 70500 Phone {337)232-4141 Fax (337) 232-0660


1234 David Dr. Ste 203 Morgan City, LA 70300 Phone (985) 384-2020 Fax (905) 304-3020

434 East Main Street Ville Platte, LA 70506 Phone (337) 363-2792 Fax (337) 363-3049

332 West Sixth Avenue Oberlin, LA 70655 Phone (337) 639-4737 Fax (337) 639-4568

450 East Main Street New Iberia, LA 7056G

Phone (337) 367-9204 Fax (337) 367-9208


Phone (337) 893-7944 Fax (337) 893-7946


Phone (337) 828-0272 Fax (337) 828-0290

133 EastWaddilSt. Marksvilie LA 71351

Phone (318) 253-9252 Fax (318) 253-0681


Phone (318) 442-4421 Fax (318) 442-9033

WEB SITE WWW.KCSRCPAS.COM

Retired: Conrad 0. Chapman, CPA*2006

The Honorable Ken Ritter, Mayor and Members of the Board of Aldermen City of Youngsville, Louisiana

During our audit of the basic financial statements of the City of Youngsville for the year ended June 30,2015, we noted the following areas in which the efficiency and effectiveness of the operations of the City could be improved. These items were also included in our management letter dated December 30, 2014 relative to our audit of the June 30, 2014 basic financial statements and are mentioned again for re-emphasis.

1. Due to the increasing size of the City's operations, it appears that the current software being utilized may not be sufficient to effectively and efficiently record transactions in an accurate manner to provide financial information to management officials.

2. City management should invest any excess cash balances in order to maximize interest earnings.

3. The City's water and sewer departments experienced operating losses of $127,648 and $95,882, respectively. Consideration should be given to increasing rates and/or decreasing expenses in these departments in order to generate a profit.

We would like to express our appreciation to you and your staff, particularly your office staff, for the courtesies and assistance rendered to us in the performance of our audit. Should you have any questions or need assistance please feel free to contact us.

Kolder, Champagne, Slaven & Company, LLC Certified Public Accountants


Member of; AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS



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