Documents › Board of Trustees Work Session, 2026-01-28

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Village of Croton-on-Hudson, New York Financial Statements and Supplementary Information Year Ended May 31, 2025 Village of Croton-on-Hudson, New York Table of Contents Page No. Independent Auditors' Report Management’s Discussion and Analysis Basic Financial Statements Government-Wide Financial Statements Statement of Net Position Statement of Activities Fund Financial Statements Balance Sheet - Governmental Funds Reconciliation of Governmental Funds Balance Sheet to the Government - Wide 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 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual - General and Water Funds Notes to Financial Statements Required Supplementary Information Other Postemployment Benefits Schedule of Changes in the Village’s Total OPEB Liability and Related Ratios New York State and Local Employees’ Retirement System Schedule of the Village’s Proportionate Share of the Net Pension Liability (Asset) Schedule of Contributions New York State and Local Police and Fire Retirement System Schedule of the Village’s Proportionate Share of the Net Pension Liability Schedule of Contributions Fire Service Awards Program Schedule of Changes in the Village’s Total Pension Liability and Related Ratios Combining and Individual Fund Financial Statements and Schedules Major Governmental Funds General Fund Combining Balance Sheet – Sub-Funds Combining Schedule of Revenues, Expenditures and Changes in Fund Balances – Sub-Funds Comparative Balance Sheet – Sub-Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual – Sub Funds Schedule of Revenues and Other Financing Sources Compared to Budget – Sub Fund Schedule of Expenditures and Other Financing Uses Compared to Budget – Sub Fund Village of Croton-on-Hudson, New York Table of Contents (Concluded) Page No. Comparative Balance Sheet Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Schedule of Revenues Compared to Budget Schedule of Expenditures and Other Financing Uses Compared to Budget Debt Service Fund Comparative Balance Sheet Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Capital Projects Fund Comparative Balance Sheet Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Project-Length Schedule Non-Major Governmental Funds Combining Balance Sheet Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Purpose Fund Comparative Balance Sheet Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Sewer Fund Comparative Balance Sheet Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Schedule of Expenditures and Other Financing Uses Compared to Budget Independent Auditors’ Report The Honorable Mayor and Board of Trustees of the Village of Croton-on-Hudson, New York Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, each major fund and the aggregate remaining fund information of the Village of Croton-on-Hudson, New York (“Village”), as of and for the year ended May 31, 2025, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund and the aggregate remaining fund information of the Village, as of May 31, 2025, and the respective changes in financial position and the respective budgetary comparison for the General Fund and Water Fund for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (“GAAS”). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Village, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Change in Accounting Policy We draw attention to Note 2F in the notes to financial statements which disclose the effects of the Village’s adoption of the provisions of Governmental Accounting Standards Board (“GASB”) Statement No. 101, “Compensated Absences”. Our opinion is not modified with respect to this matter. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for 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. PKF O’CONNOR DAVIES, LLP 500 Mamaroneck Avenue, Harrison, NY 10528 I Tel: 914.381.8900 I Fax: 914.381.8910 I www.pkfod.com PKF O’Connor Davies, LLP is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditors’ Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit 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 Village's internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgement, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Village’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that Management’s Discussion and Analysis and the schedules included under Required Supplementary Information in the accompanying table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit for the year ended May 31, 2025 was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Village's basic financial statements. The combining and individual fund financial statements and schedules for the year ended May 31, 2025 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements for the year ended May 31, 2025 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, the combining and individual fund financial statements and schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole for the year ended May 31, 2025. We also previously audited, in accordance with auditing standards generally accepted in the United States of America, the basic financial statements of the Village as of and for the year ended May 31, 2024 (not presented herein), and have issued our report thereon dated December 11, 2024 which contained unmodified opinions on the respective financial statements of the governmental activities, each major fund and the aggregate remaining fund information. The combining and individual fund financial statements and schedules for the year ended May 31, 2024 are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and related directly to the underlying accounting and other records used to prepare the 2024 financial statements. The information was subjected to the audit procedures applied in the audit of the 2024 basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare those financial statements or to those financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements and schedules are fairly stated in all material respects in relation to the basic financial statements as a whole for the year ended May 31, 2024. PKF O’Connor Davies, LLP Harrison, New York January 7, 2026 (This page intentionally left blank) Village of Croton-on-Hudson, New York Management’s Discussion and Analysis May 31, 2025 Introduction As management of the Village of Croton-on-Hudson, New York (“Village”), we offer readers of the Village’s financial statements this narrative overview and analysis of the financial activities of the Village for the fiscal year ended May 31, 2025. It should be read in conjunction with the basic financial statements, which immediately follow this section, to enhance understanding of the Village's financial performance. Financial Highlights for Fiscal Year 2025  The General Fund completed fiscal year 2025 with a fund balance totaling $12,764,428, a decrease of $359,985 from the prior year. Of the total General Fund fund balance, the unassigned fund balance totaled $5,716,944, a decrease from the prior year of $563,067. The decrease in unassigned fund balance resulted from the Board assigning portions of the fund balance for various purposes, such as the construction of the EMS addition to the Harmon Firehouse. The unassigned fund balance of $5,716,944 is 25% of the 2025-26 budgeted appropriations. The assigned classification included $125,224 for encumbrances, $650,000 for subsequent year’s expenditures, $3,150,000 for capital projects, and $620,035 for future retirement expenditures. $676,636 was restricted for employee benefits which represents accumulated vacation and sick leave in accordance with various collective bargaining agreements. In addition, $1,714,823 is restricted for pension benefits for the LOSAP and $100,000 is restricted for tax stabilization purposes.  On the government-wide financial statements, the assets and deferred outflows of resources of the Village was less than its liabilities and deferred inflows of resources at the close of the most recent fiscal year by $13,972,198.  As of the close of the current fiscal year, the Village’s governmental funds reported combined ending fund balances of $18,531,898.  The Capital Projects Fund expenditures totaled $3,763,157 and the fund balance at May 31, 2025 was $2,583,445.  The Village retired $198,944 of bond anticipation notes outstanding during the current fiscal year. At May 31, 2025, the Village had $976,362 of bond anticipation notes outstanding to finance capital projects.  During the 2025 fiscal year, the Village issued $1,288,400 of serial bonds and retired $2,554,620 of previously outstanding indebtedness. The Village’s total outstanding general obligation bonds payable at May 31, 2025 totaled $29,108,400, exclusive of unamortized issuance premiums of $1,236,323. This represents a decrease in serial bonds of $1,266,220 from the prior year. Overview of the Financial Statements The Village’s financial statements are comprised of this Management Discussion and Analysis (“MD&A”) and the basic financial statements. This discussion and analysis serves as an introduction to the basic financial statements. The MD&A provides an analysis and overview of the Village’s financial activities. The basic financial statements include three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also includes other supplementary information as listed in the table of contents. Government-wide Financial Statements The government-wide financial statements are presented in a manner similar to private-sector business financial statements. The statements are prepared using the accrual basis of accounting. The government- wide financial statements include two statements: the statement of net position and the statement of activities. Fiduciary activities, whose resources are not available to the Village's programs, are excluded from these statements. The statement of net position presents the Village’s total assets, liabilities and deferred inflows/outflows of resources, with the difference reported as net position. Over time, increases or decreases in the net position may serve as a useful indicator as to whether the financial position of the Village is improving or deteriorating. The statement of activities presents information showing the change in the Village’s net position during the current fiscal year. All revenues and expenses are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will result in cash flows in future fiscal periods such as uncollected taxes and earned but unused vacation and sick leave. The focus of this statement is on the net cost of providing various services to the citizens of the Village. The government-wide financial statements distinguish functions of the Village that are principally supported by taxes and intergovernmental revenues (“governmental activities”). The governmental activities of the Village include general government support, public safety, health, transportation, economic opportunity and development, culture and recreation, home and community services and interest. Fund Financial Statements A fund is an accounting entity with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balances, revenues and expenditures. Governmental resources are allocated to and accounted for in an individual fund based upon the purpose for which they are to be spent and the means by which spending activities are controlled. The Village, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related and legal requirements. All of the funds of the Village can be divided into two categories: governmental funds and fiduciary funds. Governmental Funds - Most of the basic services provided by the Village are financed and accounted for through governmental funds. Governmental fund financial statements focus on current inflows and outflows of spendable resources as well as the available balances of these resources at the end of the fiscal year. This information is useful in determining the Village’s financing requirements for the subsequent fiscal period. Governmental funds use the flow of current financial resources measurement focus and the modified accrual basis of accounting. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. From this comparison, readers may better understand the long-term impact of the Village’s near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The Village of Croton-on-Hudson has six (6) individual governmental funds: General, Water, Debt Service, Capital Projects, Special Purpose and Sewer funds. Of these, the General, Water, Debt Service and Capital Projects funds are reported as major funds, and are presented in separate columns on the governmental funds balance sheet and the governmental funds statement of revenues, expenditures and changes in fund balances. Data for the other governmental funds are combined into a single, aggregated presentation. Individual fund data for these non-major funds can be found on the combining statements elsewhere in this report. The Village adopts an annual budget for its General, Water, Sewer and Debt Service funds. A budgetary comparison statement has been provided in the basic financial statements for the General and Water Funds to demonstrate compliance with the respective budgets. Fiduciary Funds - These funds are used to account for resources held for the benefit of parties outside the government. The fiduciary funds are not reflected in the government-wide financial statements because the assets of these funds are not available to support the activities of the Village. The Village maintains one type of fiduciary fund, the Custodial Fund. The Pension Trust Fund accounts for the Service Awards Program for volunteer firefighters, was previously recorded as a Fiduciary Fund. Resources are held in the Custodial Fund by the Village purely in a custodial capacity. The activity in this fund is limited to the receipt and remittance of resources to the appropriate individual, organization or government. Notes to Financial Statement The notes to the financial statements provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements. The notes can be found following the basic financial statements section of this report. Other Information Additional statements and schedules can be found immediately following the notes to the financial statements. These include the required supplementary information for the Village’s Service Awards Program, other postemployment benefit obligations, the New York State Local Employees and Local Police and Fire Retirement Systems, the combining statements for the non-major governmental funds and schedules of budget to actual comparisons. Government-wide Financial Analysis The Village’s assets and deferred outflows of resources were less than the liabilities and deferred inflows of resources by $13,972,198 for fiscal year 2025. The reason for this is because, beginning in fiscal year 2019, the Village was required to implement GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions (“OPEB”)”. This statement addresses accounting and financial reporting for OPEB that is provided to the employees of state and local governments by establishing standards for recognizing and measuring liabilities, deferred outflows/inflows of resources and expenses/expenditures. This statement identifies the methods and assumptions that are required to be used to project benefit payments, discount projected benefit payments to their actuarial present value and attribute that present value to the periods of employee service. Additionally, beginning in fiscal year 2025, the Village implemented GASB Statement No. 101, Compensated Absences, which is the new standard for how government entities treat compensated absences on financial statements. The following table reflects the condensed Statement of Net Position: Statement of Net Position Current Assets $ 30,773,300 $ 22,614,135 Capital Assets, net 55,257,397 54,135,344 Total Assets 86,030,697 76,749,479 Deferred Outflows of Resources* 13,099,685 16,859,403 Current Liabilities 3,557,963 3,104,355 Long-Term Liabilities 81,835,707 82,219,497 Total Liabilities 85,393,670 85,323,852 Deferred Inflows of Resources* 27,708,910 21,793,947 Net Position Net investment in capital assets 27,881,120 24,911,170 Restricted 1,101,719 1,079,797 Unrestricted (42,955,037) (39,499,884) Total Net Position $ (13,972,198) $ (13,508,917) May 31, *Detailed information pertaining to the Village’s Deferred Outflows/Inflows of Resources is presented in Notes 1 and 3 of the financial statements. The amounts are as follows: Police and Fire ("PFRS") $ 2,589,260 $ 126,546 Employee ("ERS") 1,258,039 96,184 Fire Service Award Program 562,845 693,629 OPEB 8,551,774 17,846,746 Leases - 8,945,804 Deferred Loss on Refunding Bonds 137,767 - $ 13,099,685 $ 27,708,909 Outflows Inflows 2025 Deferred Amounts One component of the Village’s net position is net investment in capital assets of $27,881,120 which reflects its investment in capital assets, less any related debt used to acquire those assets that is still outstanding. The Village uses these capital assets to provide services to its citizens and consequently, these assets are not available for future spending. Although the Village’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The restricted net position of $1,101,719 represents resources that are subject to external restrictions on their use. The restrictions are: Debt Service $ 2,503,196 $ 250,896 Special Purpose 851,400 828,901 Restricted Net Assets $ 3,354,596 $ 1,079,797 May31, Changes in Net Position REVENUES Program Revenues Charges for Services $ 9,929,651 $ 8,880,698 Operating Grants and Contributions 252,652 340,913 Capital Grants and Contributions 1,713,434 711,311 Total Program Revenues 11,895,737 9,932,922 General Revenues Real Property Taxes 13,246,236 12,869,773 Other Tax Items 82,821 32,100 Non-Property Taxes 2,542,868 2,493,667 Unrestricted Use of Money and Property 836,499 630,599 Sale of Property and Compensation for Loss 102,772 125,528 Unrestricted State Aid 200,930 174,398 Miscellaneous 42,762 23,616 Insurance recoveries 54,137 164,321 Total General Revenues 17,109,025 16,514,002 Total Revenues 29,004,762 26,446,924 PROGRAM EXPENSES General Government Support 6,620,170 5,659,924 Public Safety 9,325,353 8,662,547 Health 797,831 660,767 Transportation 5,301,844 4,341,342 Economic Opportunity and Development 53,002 34,922 Culture and Recreation 1,679,837 1,533,729 Home and Community Services 4,070,402 3,825,529 Interest 842,217 869,954 Total Expenses 28,690,656 25,588,714 Change in Net Position 314,106 858,210 NET POSITION Beginning, as restated (14,286,304) (14,367,127) Ending $ (13,972,198) $ (13,508,917) May 31, Year Ended Unrestricted State Aid 0.69% Non-Property Taxes 8.77% Real Property Taxes 45.67% Other 3.86% Operating Grants and Contributions 0.87% Charges for Services 34.23% Capital Grants and Contributions 5.91% Sources of Revenue for Fiscal Year 2025 Governmental Activities Home and Community Services, 14.19% Culture and Recreation, 5.86% Transportation, 18.48% Public Safety, 32.50% General Government Support, 23.07% Interest, 2.94% Health, 2.78% Economic Opportunity and Development, 0.18% Sources of Expenses for Fiscal Year 2025 Governmental Activities Governmental Activities: Governmental activities increased the Village’s net position by $314,106. For the fiscal year ended May 31, 2025, revenues from governmental activities totaled $29,004,762. Tax revenues of $15,871,925 consisting of real property taxes, other tax items and non-property taxes, represented the largest revenue source at 54.7%. Financial Analysis of the Government’s Funds As noted earlier, the Village uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Fund Balance Reporting GASB issued Statement No. 54, “Fund Balance Reporting and Governmental Fund Type Definitions”, in February 2009. The requirements of GASB Statement No. 54 became effective for financial statements for the fiscal period ending June 30, 2011. GASB Statement No. 54 abandoned the reserved and unreserved classifications of fund balance and replaced them with five new classifications: nonspendable, restricted, committed, assigned and unassigned. An explanation of these classifications follows below. Nonspendable – consists of assets that are inherently nonspendable in the current period either because of their form or because they must be maintained intact, including prepaid items, inventories, long-term portions of loans receivable, financial assets held for resale and principal of endowments. Restricted – consists of amounts that are subject to externally enforceable legal purpose restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments; or through constitutional provisions or enabling legislation. Committed – consists of amounts that are subject to a purpose constraint imposed by a formal action of the government’s highest level of decision-making authority before the end of the fiscal year, and that require the same level of formal action to remove the constraint. Assigned – consists of amounts that are subject to a purpose constraint that represents an intended use established by the government’s highest level of decision-making authority, or by their designated body or official. The purpose of the assignment must be narrower than the purpose of the General Fund, and in funds other than the General Fund, assigned fund balance represents the residual amount of fund balance. Unassigned – represents the residual classification for the government’s General Fund, and could report a surplus or deficit. In funds other than the General Fund, the unassigned classification should be used only to report a deficit balance resulting from overspending for specific purposes for which amounts had been restricted, committed, or assigned. These changes were made to reflect spending constraints on resources, rather than availability for appropriations and to bring greater clarity and consistency to fund balance reporting. This pronouncement should result in an improvement in the usefulness of fund balance information. Governmental Funds - The table below outlines the various balances that comprise the total fund balance of the Village as of May 31, 2025 according to their GASB Statement No. 54 classifications along with what the former classifications would have been. More detailed information about the Village’s fund balance is presented in note 3K in the notes to financial statements. GASB No. 54 Classification Includes Former Classifications Nonspendable Fund Balance Leases - Prepaid Expenditures 10,766 Restricted Fund Balance Reserved for Employee Benefits 683,919 Reserved for Pension Benefits 1,714,823 Reserved for Tax Stabilization 100,000 Reserved for Debt Service 25,319 Debt Service - for Subsequent Year's Expenditures 225,000 Reserved for Capital Projects 2,583,445 Reserved for Parklands 775,495 Reserved for Trusts 75,905 6,183,906 Assigned Fund Balance Reserved for Encumbrances: General Government Support 42,197 Public Safety 34,997 Health 2,958 Transportation 7,181 Culture and Recreation 15,447 Economic Opportunity & Development 20,523 Home and Community Services 81,319 Designated for Subsequent Year's Expenditures: Unassigned Fund Balance 650,000 Designated for Future Retirement Expenditures 620,035 Capital projects 3,150,000 Water Fund 1,659,170 Sewer Fund 336,455 6,620,282 Unassigned Fund Balance Unreserved and Undesignated: 5,716,944 Total Fund Balances (as of May 31, 2025) $ 18,531,898 Fund Balance The focus of the Village’s governmental funds is to provide information on near-term inflows, outflows and balances of spendable resources. Such information is useful in assessing the Village’s financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources available for discretionary use as it represents the portion of fund balance which has not yet been limited to use for a particular purpose by either an external party, the Village itself, or an individual that has been delegated authority to assign resources for use for particular purposes by the Village Board. As of the end of the current fiscal year, the Village’s governmental funds reported combined fund balances of $18,531,898, an increase of $714,184 from the prior year. General Fund Budgetary Highlights When the fiscal 2024-2025 budget was adopted, it anticipated the use of $675,000 of unassigned fund balance, for balancing the operating budget. Actual operations resulted in a decrease of $359,985 to the overall general fund balance, due to higher than budgeted revenues in the general fund. Capital Asset and Debt Administration Capital Assets: The Village’s investment in capital assets for its governmental activities as of May 31, 2025, amounted to $55,257,397 (net of accumulated depreciation). This investment in capital assets includes land, buildings and improvements, machinery and equipment, infrastructure and construction-in- progress. Capital Assets (Net of Depreciation) Land $ 4,773,011 $ 4,773,011 Buildings and improvements 8,766,142 7,964,488 Machinery and equipment 6,596,031 3,897,731 Infrastructure 33,817,036 32,202,189 Construction-in-Progress 1,305,177 5,297,925 Total $ 55,257,397 $ 54,135,344 May 31, Additional information on the Village’s capital assets can be found in Note 3 of this report. Long-term Debt: On May 31, 2025, the Village had total debt outstanding of $30,344,723, comprised of general obligation bonded debt of $29,108,400 and $1,236,323 of unamortized premiums. During the 2024-2025 fiscal year, the Village issued $1,288,400 of serial bonds and retired $2,554,620 of serial bonds and $164,647 of unamortized premiums. All of this debt is backed by the full faith and credit of the Village. Additional information on the Village’s long-term debt can be found in Note 3 of this report. Requests for Information This financial report is designed to provide a general overview of the Village’s finances for all those with an interest in the government’s finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to Bryan Healy, Village Manager, Village of Croton-on-Hudson, One Van Wyck Street, Croton-on-Hudson, New York 10520. Village of Croton-on-Hudson, New York Statement of Net Position ASSETS Cash and equivalents $ 15,693,091 Investments 4,029,034 Receivables Accounts 141,528 Water rents 1,083,523 Sewer rents 120,852 State and Federal aid 84,269 Due from other governments 573,511 Leases 9,036,726 Prepaid expenses 10,766 Capital assets Not being depreciated 6,078,188 Being depreciated, net 49,179,209 Total Assets 86,030,697 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds 137,767 Pension related 3,847,299 OPEB related 8,551,774 Length of service awards programs 562,845 Total Deferred Outflows of Resources 13,099,685 LIABILITIES Accounts payable 506,625 Accrued liabilities 422,660 Deposits payable 335,850 Employee payroll deductions 186,728 Bond anticipation notes payable 976,362 Unearned revenues 867,372 Accrued interest payable 262,366 Non-current liabilities Due within one year 4,212,506 Due in more than one year 77,623,201 Total Liabilities 85,393,670 DEFERRED INFLOWS OF RESOURCES Leases 8,945,805 Pension related 222,730 OPEB related 17,846,746 Length of service awards programs 693,629 Total Deferred Inflows of Resources 27,708,910 NET POSITION Net investment in capital assets 27,881,120 Restricted Debt service 250,319 Special purpose Culture and recreation 851,400 Unrestricted (42,955,037) Total Net Position $ (13,972,198) The notes to the financial statements are an integral part of this statement. May 31, 2025 Governmental Activities (This page intentionally left blank) Village of Croton-on-Hudson, New York Statement of Activities Year Ended May 31, 2025 Functions/Programs Governmental activities General government support $ 6,620,170 $ 866,268 $ 30,600 $ - $ (5,723,302) Public safety 9,325,353 887,312 60,446 487,678 (7,889,917) Health 797,831 665,864 - - (131,967) Transportation 5,301,844 2,976,832 31,260 1,103,183 (1,190,569) Economic opportunity and development 53,002 - - - (53,002) Culture and recreation 1,679,837 288,160 85,386 25,000 (1,281,291) Home and community services 4,070,402 4,245,215 44,960 - 219,773 Interest 842,217 - - 97,573 (744,644) Total Governmental Activities $ 28,690,656 $ 9,929,651 $ 252,652 $ 1,713,434 (16,794,919) General revenues Real property taxes 13,246,236 Other tax items Interest and penalties on real property taxes 82,821 Non-property taxes Non-property tax distribution from County 2,287,635 Franchise fees 108,411 Utilities gross receipts taxes 140,653 Emergency Tenant Protection Act 6,169 Unrestricted use of money and property 836,499 Sale of property and compensation for loss 102,772 Unrestricted State aid 200,930 Miscellaneous 42,762 Insurance recoveries 54,137 Total General Revenues 17,109,025 Change in Net Position 314,106 NET POSITION Beginning, as reported (13,508,917) Cumulative Effect of Change in Accounting Principle (777,387) Beginning, as restated (14,286,304) Ending $ (13,972,198) The notes to the financial statements are an integral part of this statement. Changes in Net Position Net (Expense) Revenue and Program Revenues Expenses Services Charges for Contributions Grants and Operating Capital Grants and Contributions Village of Croton-on-Hudson, New York Balance Sheet Governmental Funds General ASSETS Cash and equivalents $ 11,770,199 $ 675,932 $ 232,316 Investments 2,426,687 761,326 - Other receivables Accounts 139,153 - - Water rents - 1,083,523 - Sewer rents - - - State and Federal aid 1,301 - - Due from other governments 573,511 - - Leases 9,036,726 - - Due from other funds 762,942 6,992 18,003 Prepaid expenditures 10,766 - - Total Assets $ 24,721,285 $ 2,527,773 $ 250,319 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 321,125 $ 34,239 $ - Accrued liabilities 406,364 15,833 - Bond anticipation notes payable - - - Deposits payable 335,850 - - Employee payroll deductions 186,728 - - Due to other funds 893,613 748,285 - Unearned revenues 867,372 - - Total Liabilities 3,011,052 798,357 - Deferred inflows of resources Leases 8,945,805 - - Total Liabilities and Deferred Inflows of Resources 11,956,857 798,357 - Fund balances Nonspendable 10,766 - - Restricted 2,491,459 7,283 250,319 Assigned 4,545,259 1,722,133 - Unassigned 5,716,944 - - Total Fund Balances 12,764,428 1,729,416 250,319 Total Liabilities and Fund Balances $ 24,721,285 $ 2,527,773 $ 250,319 The notes to the financial statements are an integral part of this statement. May 31, 2025 Water Debt Service Governmental $ 2,482,719 $ 531,925 $ 15,693,091 - 841,021 4,029,034 1,500 141,528 - - 1,083,523 - 120,852 120,852 82,968 - 84,269 - - 573,511 - - 9,036,726 1,137,623 111,442 2,037,002 - - 10,766 $ 3,704,810 $ 1,606,115 $ 32,810,302 $ 122,187 $ 29,074 $ 506,625 - 422,660 976,362 - 976,362 - - 335,850 - 186,728 22,816 372,288 2,037,002 - - 867,372 1,121,365 401,825 5,332,599 - - 8,945,805 1,121,365 401,825 14,278,404 - - 10,766 2,583,445 851,400 6,183,906 - 352,890 6,620,282 - - 5,716,944 2,583,445 1,204,290 18,531,898 $ 3,704,810 $ 1,606,115 $ 32,810,302 Total Funds Non-Major Governmental Projects Capital (This page intentionally left blank) Village of Croton-on-Hudson, New York Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balances - Governmental Funds 18,531,898 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Capital assets - non-depreciable 6,078,188 Capital assets - depreciable 104,469,874 Accumulated depreciation (55,290,665) 55,257,397 Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on the statement of net position. Deferred outflows - pension related 3,847,299 Deferred outflows - OPEB related 8,551,774 Deferred outflows - length of service awards program(s) 562,845 Deferred inflows - pension related (222,730) Deferred inflows - OPEB related (17,846,746) Deferred inflows - length of service awards program(s) (693,629) (5,801,187) Long-term and other liabilities are not due and payable in the current period and, therefore, are not reported in the funds. Accrued interest payable (262,366) General obligation bonds payable (29,108,400) Compensated absences (2,971,247) Net pension liability-ERS (2,966,623) Net pension liability-PFRS (4,192,801) Total OPEB Liability (38,884,322) Fire Service Award Program (2,475,991) (80,861,750) Governmental funds report the effect of premiums, discounts, and refundings and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. Deferred amount on refunding 137,767 Premium on general obligation bonds (1,236,323) (1,098,556) Net Position of Governmental Activities (13,972,198) $ The notes to the financial statements are an integral part of this statement. May 31, 2025 Village of Croton-on-Hudson, New York Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended May 31, 2025 General REVENUES Real property taxes $ 13,246,236 $ - $ - Other tax items 82,821 - - Non-property taxes 2,542,868 - - Departmental income 4,534,027 3,690,060 - Net change in fair value of investments 38,712 - - Use of money and property 1,282,171 44,960 76,580 Licenses and permits 390,720 - - Fines and forfeitures 434,811 - - Sale of property and compensation for loss 102,772 - - State aid 262,790 - - Miscellaneous 44,152 - 20,993 Total Revenues 22,962,080 3,735,020 97,573 EXPENDITURES Current General government support 3,917,137 340,039 - Public safety 5,122,277 - - Health 720,882 - - Transportation 2,308,864 - - Economic opportunity and development 47,198 - - Culture and recreation 876,598 - - Home and community services 1,365,574 823,378 - Employee benefits 5,922,153 337,142 - Debt service Principal - - 2,554,620 Interest 34,006 985,263 Capital outlay - - - Total Expenditures 20,314,689 1,501,246 3,539,883 Excess (Deficiency) of Revenues Over Expenditures 2,647,391 2,233,774 (3,442,310) OTHER FINANCING SOURCES (USES) Bonds issued - - - Insurance recoveries 54,137 - - Transfers in 595,000 - 3,541,733 Transfers out (3,656,513) (1,426,490) (100,000) Total Other Financing Sources (Uses) (3,007,376) (1,426,490) 3,441,733 Net Change in Fund Balances (359,985) 807,284 (577) FUND BALANCES Beginning of Year 13,124,413 922,132 250,896 End of Year $ 12,764,428 $ 1,729,416 $ 250,319 The notes to the financial statements are an integral part of this statement. Water Service Debt Governmental Governmental Funds $ - $ - $ 13,246,236 - - 82,821 - - 2,542,868 - 456,095 8,680,182 - - 38,712 - 25,425 1,429,136 - - 390,720 - - 434,811 - - 102,772 1,590,861 - 1,853,651 25,000 58,571 148,716 1,615,861 540,091 28,950,625 - 91,719 4,348,895 - - 5,122,277 - - 720,882 - - 2,308,864 - - 47,198 - 36,497 913,095 - 311,196 2,500,148 - 20,591 6,279,886 - - 2,554,620 - - 1,019,956 3,763,157 - 3,763,157 3,763,157 460,003 29,578,978 (2,147,296) 80,088 (628,353) 1,288,400 - 1,288,400 - - 54,137 1,634,015 - 5,770,748 (71,850) (515,895) (5,770,748) 2,850,565 (515,895) 1,342,537 703,269 (435,807) 714,184 1,880,176 1,640,097 17,817,714 $ 2,583,445 $ 1,204,290 $ 18,531,898 Non-Major Total Capital Projects (This page intentionally left blank) Village of Croton-on-Hudson, New York Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended May 31, 2025 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Change in Fund Balances - Total Governmental Funds $ 714,184 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 expenditures 4,096,079 Depreciation expense (2,974,026) 1,122,053 Issuance of long-term debt provides current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net position. Repayment of debt principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities 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. Bonds issued (1,288,400) Principal paid on general obligation bonds 2,554,620 1,266,220 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Accrued interest 35,543 Compensated absences 33,896 Changes in pension liabilities and related deferred outflows and inflows of resources 269,658 Changes in OPEB liabilities and related deferred outflows and inflows of resources (3,269,644) Amortization of loss on refunding bonds and issuance premium 142,196 (2,788,351) Change in Net Position of Governmental Activities $ 314,106 The notes to the financial statements are an integral part of this statement. Village of Croton-on-Hudson, New York Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual General and Water Funds Year Ended May 31, 2025 Final Variance with Final Budget REVENUES Real property taxes $ 13,245,927 $ 13,245,927 $ 13,246,236 $ Other tax items 46,101 73,863 82,821 8,958 Non-property taxes 2,272,680 2,272,680 2,542,868 270,188 Departmental income 3,905,313 4,142,930 4,534,027 391,097 Net change in fair value of investments - - 38,712 38,712 Use of money and property 661,245 771,245 1,282,171 510,926 Licenses and permits 261,900 261,900 390,720 128,820 Fines and forfeitures 380,000 380,000 434,811 54,811 Sale of property and compensation for loss 23,600 58,435 102,772 44,337 State aid 203,520 550,009 262,790 (287,219) Federal aid - - - - Miscellaneous - - 44,152 44,152 Total Revenues 21,000,286 21,756,989 22,962,080 1,205,091 EXPENDITURES Current General government support 3,922,031 3,996,104 3,917,137 78,967 Public safety 4,631,179 5,106,987 5,122,277 (15,290) Health 663,184 725,911 720,882 5,029 Transportation 3,091,480 2,326,622 2,308,864 17,758 Economic opportunity and development 48,497 63,944 47,198 16,746 Culture and recreation 848,847 914,719 876,598 38,121 Home and community services 495,868 1,461,243 1,365,574 95,669 Employee benefits 6,073,708 5,978,811 5,922,153 56,658 Debt service Interest 34,007 34,007 34,006 Total Expenditures 19,808,801 20,608,348 20,314,689 293,659 Excess of Revenues Over Expenditures 1,191,485 1,148,641 2,647,391 1,498,750 OTHER FINANCING SOURCES (USES) Insurance recoveries - 52,810 54,137 1,327 Transfers in 525,000 603,514 595,000 (8,514) Transfers out (2,609,776) (3,891,074) (3,656,513) 234,561 Total Other Financing Uses (2,084,776) (3,234,750) (3,007,376) 227,374 Net Change in Fund Balances (893,291) (2,086,109) (359,985) 1,726,124 FUND BALANCES Beginning of Year 893,291 2,086,109 13,124,413 11,038,304 End of Year $ - $ - $ 12,764,428 $ 12,764,428 The notes to the financial statements are an integral part of this statement. General Actual Budget Original Budget Final Variance with Final Budget $ - $ - $ - $ - - - - - - - - - 2,939,678 2,939,678 3,690,060 750,382 - - - - 5,000 5,535 44,960 39,425 - - - - - - - - - - - - - - - - - - - - - - - - 2,944,678 2,945,213 3,735,020 789,807 404,287 340,313 340,039 - - - - - - - - - - - - - - - - - - - - 820,294 886,251 823,378 62,873 334,748 335,609 337,142 (1,533) - 1,560,016 1,562,860 1,501,246 61,614 1,384,662 1,382,353 2,233,774 851,421 - - - - - - - - (1,426,490) (1,426,490) (1,426,490) - (1,426,490) (1,426,490) (1,426,490) - (41,828) (44,137) 807,284 851,421 41,828 44,137 922,132 877,995 $ - $ - $ 1,729,416 $ 1,729,416 Water Budget Actual Original Budget (This page intentionally left blank) Village of Croton-on-Hudson, New York Notes to Financial Statements May 31, 2025 Note 1 - Summary of Significant Accounting Policies The Village of Croton-on-Hudson, New York (“Village”) was established in 1898 and operates in accordance with Village Law and the various other applicable laws of the State of New York. The Village Board of Trustees is the legislative body responsible for overall operation. The Village Manager serves as the chief executive officer and the Village Treasurer serves as the chief financial officer. The Village provides the following services to its residents: public safety, health, transportation, economic opportunity and development, culture and recreation, home and community services and general and administrative support. The financial statements of the Village have been prepared in conformity with accounting principles generally accepted in the United States of America as applied to governmental units and the Uniform System of Accounts as prescribed by the State of New York. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The Village's significant accounting policies are described below: A. Financial Reporting Entity The financial reporting entity consists of a) the primary government, which is the Village, b) organizations for which the Village is financially accountable and c) other organizations for which the nature and significance of their relationship with the Village are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete as set forth by GASB. In evaluating how to define the Village, for financial reporting purposes, management has considered all potential component units. The decision to include a potential component unit in the Village’s reporting entity was made by applying the criteria set forth by GASB, including legal standing, fiscal dependency and financial accountability. Based upon the application of these criteria, there are no other entities which would be included in the financial statements. B. Government-Wide Financial Statements The government-wide financial statements (i.e., the Statement of Net Position and the Statement of Activities) report information on all non-fiduciary activities of the Village as a whole. For the most part, the effect of interfund activity has been removed from these statements, except for interfund services provided and used. The Statement of Net Position presents the financial position of the Village at the end of its fiscal year. The Statement of Activities demonstrates the degree to which direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Program revenues include (1) charges to customers or applicants who purchase, use or directly benefit from goods or services, or privileges provided by a given function or segment, (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment and (3) interest earned on grants that is required to be used to support a particular program. Other items not identified as program revenues are reported as general revenues. The Village does not allocate indirect expenses to functions in the Statement of Activities. While separate government-wide and fund financial statements are presented, they are interrelated. Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter is excluded from the government-wide financial statements. Major individual governmental funds are reported as separate columns in the fund financial statements. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) C. Fund Financial Statements The accounts of the Village are organized and operated on the basis of funds. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts, which comprise its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund balances, revenues and expenditures. 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 Village maintains the minimum number of funds consistent with legal and managerial requirements. The focus of governmental fund financial statements is on major funds as that term is defined in professional pronouncements. Each major fund is to be presented in a separate column, with non-major funds, if any, aggregated and presented in a single column. Fiduciary funds are reported by type. Since the governmental fund statements are presented on a different measurement focus and basis of accounting than the government-wide statements’ governmental activities column, a reconciliation is presented on the pages following, which briefly explain the adjustments necessary to transform the fund based financial statements into the governmental activities column of the government-wide presentation. The Village’s resources are reflected in the fund financial statements in two broad fund categories, in accordance with generally accepted accounting principles as follows: Fund Categories a. Governmental Funds - Governmental Funds are those through which most general government functions are financed. The acquisition, use and balances of expendable financial resources and the related liabilities are accounted for through governmental funds. The following are the Village’s major governmental funds: General Fund - The General Fund constitutes the primary operating fund of the Village in that it includes all revenues and expenditures not required by law to be accounted for in other funds. Special Revenue Funds - Special revenue funds are established to account for the proceeds of specific revenue sources that are restricted, committed or assigned to expenditures for certain defined purposes. The major special revenue fund of the Village is the Water Fund. The Water Fund is used to record the water utility operations of the Village, which renders services on a user charge basis to the general public. The major revenue of this fund is departmental income. Debt Service Fund - The Debt Service Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for principal and interest, and for financial resources that are being accumulated for principal and interest maturing in future years. Capital Projects Fund - The Capital Projects Fund is used to account for and report financial resources that are restricted, committed or assigned to expenditures for capital outlays, including the acquisition or construction of major capital facilities and other capital assets. The Village also reports the following non-major governmental funds. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) Special Revenue Funds: Special Purpose Fund - The Special Purpose Fund is used to account for assets held by the Village in accordance with the terms of a trust agreement. Sewer Fund - The Sewer Fund is used to record the sewer utility operations of the Village, which renders services on a user charge basis to the general public. b. Fiduciary Funds (Not Included in Government-Wide Statements) - The Fiduciary Funds are used to account for assets held by the Village on behalf of others. In accordance with the provisions of GASB Statement No. 84, “Fiduciary Activities”, the Village had no such activity to report in this fund category. D. Measurement Focus, Basis of Accounting and Financial Statement Presentation The accounting and financial reporting treatment is determined by the applicable measurement focus and basis of accounting. Measurement focus indicates the type of resources being measured such as current financial resources (current assets less current liabilities) or economic resources (all assets and liabilities). The basis of accounting indicates the timing of transactions or events for recognition in the financial statements. The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized when they have been earned and 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. Property taxes are considered to be available if collected within sixty days of the fiscal year end. If expenditures are the prime factor for determining eligibility, revenues from Federal and State grants are recognized as revenues when the expenditure is made and the amounts are expected to be collected within one year of the fiscal year end. A ninety day availability period is generally used for revenue recognition for most other governmental fund revenues. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences, net pension liability, total pension liability and other postemployment benefit liability are recognized later based on specific accounting rules applicable to each, generally when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds. Issuances of long-term debt are reported as other financing sources. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) E. Assets, Liabilities, Deferred Outflows/Inflows of Resources and Net Position or Fund Balances Cash and Equivalents, Investments and Risk Disclosure Cash and Equivalents - Cash and equivalents consist of funds deposited in demand deposit accounts, time deposit accounts and short-term investments with original maturities of less than three months from the date of acquisition. Collateral is required for demand deposit accounts, time deposit accounts and certificates of deposit at 100% of all deposits not covered by Federal deposit insurance. The Village has entered into custodial agreements with the various banks which hold their deposits. These agreements authorize the obligations that may be pledged as collateral. Such obligations include, among other instruments, obligations of the United States and its agencies and obligations of the State and its municipal and school district subdivisions. The Village utilizes a pooled investment concept for all governmental funds to facilitate its investment program. Investment income from this pooling is allocated to the respective funds based upon the sources of funds invested. Investments - (except Service Awards Investments which are discussed in Note 3A) - Permissible investments include obligations of the U.S. Treasury, U.S. Agencies, repurchase agreements and obligations of New York State or its political subdivisions. The Village follows the provisions of GASB Statement No. 72, “Fair Value Measurement and Application”, which defines fair value and establishes a fair value hierarchy organized into three levels based upon the input assumptions used in pricing assets. Level 1 inputs have the highest reliability and are related to assets with unadjusted quoted prices in active markets. Level 2 inputs relate to assets with other than quoted prices in active markets which may include quoted prices for similar assets or liabilities or other inputs which can be corroborated by observable market data. Level 3 inputs are unobservable inputs and are used to the extent that observable inputs do not exist. The Village participates in the Cooperative Liquid Assets Securities System (“CLASS”), a cooperative investment pool, established pursuant to Articles 3A and 5G of General Municipal Law of the State of New York. CLASS has designated Public Trust Advisors, LLC as its registered investment advisor. Public Trust Advisors, LLC is registered with the Securities and Exchange Commission (“SEC”) and is subject to all of the rules and regulations of an investment advisor handling public funds. As such, the SEC provides regulatory oversight of CLASS. The pool is authorized to invest in various securities issued by the United States and its agencies, obligations of the State of New York and repurchase agreements. These investments are reported at fair value. CLASS issues separately available audited financial statements with a year end of June 30th. The Village’s position in the pool, $2,364,713, (General Fund - $762,366, Water Fund - $761,326, Special Purpose Fund - $341,181, and Sewer Fund - $499,840) is equal to the value of the pool shares. The maximum maturity for any specific investment in the portfolio is 397 days. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) Additional information concerning the cooperative is presented in the annual report of CLASS, which may be obtained from Public Trust Advisors, LLC, 717 17th Street, Suite 1850, Denver, CO 80202. Risk Disclosure Interest Rate Risk - Interest rate risk is the risk that the government will incur losses in fair value caused by changing interest rates. The Village does not have a formal investment policy that limits investment maturities as a means of managing its exposure to fair value losses arising from changing interest rates. Generally, the Village does not invest in any long-term investment obligations. Custodial Credit Risk - Custodial credit risk is the risk that in the event of a bank failure, the Village’s deposits may not be returned to it. GASB Statement No. 40, “Deposit and Investment Risk Disclosures – an amendment of GASB Statement No. 3”, directs that deposits be disclosed as exposed to custodial credit risk if they are not covered by depository insurance and the deposits are either uncollateralized, collateralized by securities held by the pledging financial institution or collateralized by securities held by the pledging financial institution’s trust department but not in the Village’s name. The Village’s aggregate bank balances that were not covered by depository insurance were not exposed to custodial credit risk at May 31, 2025. Credit Risk - Credit risk is the risk that an issuer or other counterparty will not fulfill its specific obligation even without the entity’s complete failure. The Village does not have a formal credit risk policy other than restrictions to obligations allowable under General Municipal Law of the State of New York. Concentration of Credit Risk - Concentration of credit risk is the risk attributed to the magnitude of a government’s investments in a single issuer. The Village’s investment policy limits the amount on deposit at each of its banking institutions. Taxes Receivable - Real property taxes attach as an enforceable lien on real property as of June 1st and are levied and payable in June. The Village is responsible for the billing and collection of its own taxes. The Village also has the responsibility for in-rem foreclosure proceedings. Other Receivables - Other receivables include amounts due from other governments and individuals for services provided by the Village. Receivables are recorded and revenues recognized as earned or as specific program expenses/expenditures are incurred. Allowances are recorded where appropriate. Lease Receivable - The Village is a lessor for a noncancellable leases of real property. The Village recognizes a lease receivable and a deferred inflow of resources in the government-wide and General Fund financial statements. At the commencement of a lease, the Village initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. The deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) Key estimates and judgements include how the Village determines (1) the discount rate it uses to discount the expected lease receipts to present value, 2) lease-term, and (3) lease receipts.  The Village uses its estimated incremental borrowing rate as the discount rate for leases.  The lease term includes the noncancellable period of the lease. Lease receipts included in the measurement of the lease receivable is composed of fixed payments from the lessee. The Village monitors changes in circumstances that would require measurement of its lease, and will remeasure the lease receivable and deferred inflows of resources if certain changes occur that are expected to significantly affect the amount of the lease receivable. Due From/To Other Funds - During the course of its operations, the Village has numerous transactions between funds to finance operations, provide services and construct assets. To the extent that certain transactions between funds had not been paid or received as of May 31, 2025, balances of interfund amounts receivable or payable have been recorded in the fund financial statements. Inventories - There are no inventory values presented in the balance sheets of the respective funds of the Village. Purchases of inventoriable items at various locations are recorded as expenses/expenditures at the time of purchase and year-end balances at these locations are not material. Prepaid Expenses/Expenditures - Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items using the consumption method in both the government-wide and fund financial statements. Prepaid expenses/expenditures consist of costs which have been satisfied prior to the end of the fiscal year, but represent items which have been provided for in the subsequent year’s budget and/or will benefit such periods. Reported amounts in governmental funds are equally offset by nonspendable fund balance, in the fund financial statements, which indicates that these amounts do not constitute “available spendable resources” even though they are a component of current assets. Capital Assets - Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks and similar items) are reported in the governmental activities column in the government-wide financial statements. Capital assets are defined by the Village as assets with an initial, individual cost of more than $2,500 and an estimated useful life in excess of one year. Such assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at acquisition value at the date of donation. Acquisition value is the price that would be paid to acquire an asset with equivalent service potential on the date of donation. In the case of the initial capitalization of general infrastructure assets (i.e., those reported by governmental activities), the Village chose to include all such items regardless of their acquisition date or amount. The Village was able to estimate the historical cost for the initial reporting of these assets through backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) Major outlays for capital assets and improvements are capitalized as projects are constructed. The cost of normal maintenance and repairs that do not add to the value of the asset or materially extend asset lives is not capitalized. Land and construction-in-progress are not depreciated. Property, plant, equipment and infrastructure of the Village are depreciated using the straight line method over the following estimated useful lives. Life Class in Years Buildings and Improvements 20-50 Machinery and Equipment 5-20 Infrastructure 15-50 The costs associated with the acquisition or construction of capital assets are shown as capital outlay expenditures on the governmental fund financial statements. Capital assets are not shown on the governmental fund balance sheets. Unearned Revenues - Unearned revenues arise when assets are recognized before revenue recognition criteria have been satisfied. In government-wide financial statements, unearned revenues consist of revenue received in advance and/or amounts from grants received before the eligibility requirements have been met. Unearned revenues in fund financial statements are those where asset recognition criteria have been met, but for which revenue recognition criteria have not been met. The Village has reported unearned revenues of $867,372 for ambulance, fire, parking permit fees and other fees received in advance in the General Fund. These amounts have been deemed to be measurable but not "available" pursuant to generally accepted accounting principles. Deferred Outflows/Inflows of Resources - In addition to assets, the statement of financial position includes a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net assets that applies to a future period and so will not be recognized as an outflow of resources (expense/expenditure) until then. In addition to liabilities, the statement of financial position includes a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net assets that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The Village reported deferred inflows of resources in the General Fund of $8,945,805 in relation to its leases. This amount is deferred and recognized as an inflow of resources in the period that the amounts became available. The Village reported deferred outflows of resources of $137,767 for a deferred loss on refunding bonds in the government-wide Statement of Net Position. This amount results from the difference in the carrying value of the refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter of the life of the refunded or refunding debt. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) The Village has also reported deferred outflows of resources and deferred inflows of resources in relation to its pension, fire service award and other postemployment benefit liabilities in the government-wide financial statement for governmental activities. These amounts are detailed in the discussion of the Village’s pension, fire service award and other postemployment benefit liabilities in Note 3H. Long-Term Liabilities - In government-wide financial statements, long-term debt and other long- term obligations are reported as liabilities in the Statement of Net Position. Bond premiums and discounts are deferred and amortized over the life of the bonds. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are expensed as incurred. In the fund financial statements, governmental funds recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of the debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as Capital Projects or Debt Service funds expenditures. Compensated Absences - The liability for compensated absences represents the sick time (“leave”/“leave days”) and salary related payments which have been earned for services previously rendered by employees in accordance with the Village’s various collective bargaining agreements, accumulates, is allowed to be carried over to subsequent year(s) and is deemed more likely than not (by management) to be used for time off or otherwise paid/settled in the future. The liability is calculated based on each employee’s rate of pay and the number of unused leave days accumulated as of year-end, management’s assumption that the likelihood of future use (either by use during employment or settlement/payment upon separation from service) is probable, and the salary related payments are directly and incrementally associated with payments for the leave. The Village utilizes historical data of past usage patterns to estimate the expected usage and payment of compensated absences. The liability for compensated absences is reflected in the district-wide financial statements as current and long-term liabilities. In the fund financial statements, only the compensated absences liability that has matured through employee resignation or retirement and is expected to be payable from expendable available financial resources is reported. The financial reporting of these amounts is presented in accordance with the provisions of GASB Statement No. 101, “Compensated Absences”. Net Pension Liability (Asset) - The net pension liability (asset) represents the Village’s proportionate share of the net pension liability (asset) of the New York State and Local Employees’ Retirement System and the New York State and Local Police and Fire Retirement System. The financial reporting of these amounts are presented in accordance with the provisions of GASB Statement No. 68, “Accounting and Financial Reporting for Pensions” and GASB Statement No. 71, “Pension Transition for Contributions Made Subsequent to the Measurement Date – An Amendment of GASB Statement No. 68.” Other Postemployment Benefit Liability (“OPEB”) - In addition to providing pension benefits, the Village provides health care benefits for certain retired employees and their survivors. The financial reporting of these amounts are presented in accordance with the provisions of GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other than Pensions”. Total Pension Liability - Length of Service Award Program - The total pension liabilities for the Fire Service Award Program are presented in accordance with the provisions of GASB Statement Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) No. 73, “Accounting and Financial Reporting for Pensions and Related Assets That Are Not Within the Scope of GASB Statement No. 68, and Amendments to Certain Provisions of GASB Statements Nos. 67 and 68”. Net Position - represents the difference between assets and deferred outflows of resources, less liabilities and deferred inflows of resources. Net position is comprised of three components: net investment in capital assets, restricted, and unrestricted. Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are also included in this component of net position. Restricted net position consists of restricted assets and deferred outflows of resources reduced by liabilities and deferred inflows of resources related to those assets. Assets are reported as restricted when constraints are placed on asset use either through the enabling legislation adopted by the Village or through external restrictions imposed by creditors, grantors, or laws or regulations of other governments. Restricted net position for the Village includes restricted for debt service and special purpose. Unrestricted net position is the net amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that do not meet the definition of the two preceding categories. Fund Balance - Generally, fund balance represents the difference between the current assets and deferred outflows of resources and current liabilities and deferred inflows of resources. In the fund financial statements, governmental funds report fund classifications that comprise a hierarchy based primarily on the extent to which the Village is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Under this standard, the fund balance classifications are as follows: Nonspendable fund balance includes amounts that cannot be spent because they are either not in spendable form (inventories, prepaid amounts, long-term receivables) or they are legally or contractually required to be maintained intact (the corpus of a permanent fund). Restricted fund balance is reported when constraints placed on the use of the resources are imposed by grantors, contributors, laws or regulations of other governments or imposed by law through enabling legislation. Enabling legislation includes a legally enforceable requirement that these resources be used only for the specific purposes as provided in the legislation. This fund balance classification is used to report funds that are restricted for debt service obligations and for other items contained in General Municipal Law of the State of New York. Committed fund balance is reported for amounts that can only be used for specific purposes pursuant to formal action of the entity’s highest level of decision-making authority. The Board of Trustees is the highest level of decision-making authority for the Village that can, by the adoption of a resolution prior to the end of the fiscal year, commit fund balance. Once adopted, these funds may only be used for the purpose specified unless the entity removes or changes the purpose by taking the same action that was used to establish the Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 1 - Summary of Significant Accounting Policies (Continued) commitment. This classification includes certain amounts established and approved by the Board of Trustees. Assigned fund balance, in the General Fund, represents amounts constrained either by the policies of the entity’s highest level of decision-making authority or a person with delegated authority from the governing board to assign amounts for a specific intended purpose. Unlike commitments, assignments generally only exist temporarily, in that additional action does not normally have to be taken for the removal of an assignment. An assignment cannot result in a deficit in the unassigned fund balance in the General Fund. Assigned fund balance in all other governmental funds represents any positive remaining amount after classifying nonspendable, restricted or committed fund balance amounts. Unassigned fund balance, in the General Fund, represents amounts not classified as nonspendable, restricted, committed or assigned. The General Fund is the only fund that would report a positive unassigned fund balance. For all governmental funds other than the General Fund, any deficit fund balance is reported as unassigned. In order to calculate the amounts to report as restricted and unrestricted fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the Village’s policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the Village’s policy to use fund balance in the following order: committed, assigned, and unassigned. F. Encumbrances In governmental funds, encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve applicable appropriations is generally employed as an extension of formal budgetary integration in the General, Water and Sewer funds. Encumbrances outstanding at year-end are generally reported as assigned fund balance since they do not constitute expenditures or liabilities. G. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. H. Subsequent Events Evaluation by Management Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which date is January 7, 2026. I. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified to conform with the current year presentation. These reclassifications had no effect on previously reported total fund balance amounts. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 2 - Stewardship, Compliance and Accountability A. Budgetary Data The Village generally follows the procedures enumerated below in establishing the budgetary data reflected in the financial statements: a) On or before March 20th, the budget officer submits to the Board of Trustees a tentative operating budget for the fiscal year commencing the following June 1st. The tentative budget includes proposed expenditures and the means of financing. b) The Board of Trustees, on or before March 31st, meets to discuss and review the tentative budget. c) The Board of Trustees conducts a public hearing on the tentative budget to obtain taxpayer comments on or before April 15th. d) After the public hearing and on or before May 1st, the Trustees meet to consider and adopt the budget. e) Formal budgetary integration is employed during the year as a management control device for General, Water, Debt Service and Sewer funds. f) Budgets for General, Water, Debt Service and Sewer funds are legally adopted annually on a basis consistent with generally accepted accounting principles. The Capital Projects Fund is budgeted on a project basis. An annual budget is not adopted for the Special Purpose Fund since other means control the use of these resources (e.g., grant awards) and sometimes span a period of more than one fiscal year. g) The Village Board has established legal control of the budget at the function level of expenditures. Transfers between appropriation accounts, at the function level, require approval by the Board of Trustees. Any modification to appropriations resulting from increases in revenue estimates or supplemental reserve appropriations also require a majority vote by the Board. h) Appropriations in General, Water, Debt Service and Sewer funds lapse at the end of the fiscal year, except that outstanding encumbrances are reappropriated in the succeeding year pursuant to the Uniform System of Accounts promulgated by the Office of the State Comptroller. Budgeted amounts are as originally adopted, or as amended by the Board of Trustees. B. Property Tax Limitations The Village is permitted by the Constitution of the State of New York to levy taxes up to 2% of the five-year average full valuation of taxable real estate located within the Village, exclusive of the amount raised for the payment of interest on and redemption of long-term debt. In accordance with this definition, the maximum amount of the levy for 2024-2025 was $28,418,308 which exceeded the actual levy (inclusive of exclusions) by $15,172,381. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 2 - Stewardship, Compliance and Accountability (Continued) In addition to this constitutional tax limitation, Chapter 97 of the Laws of 2011, as amended (“Tax Levy Limitation Law”), modified previous law by imposing a limit on the amount of real property taxes a local government may levy. The following is a brief summary of certain relevant provisions of the Tax Levy Limitation Law. The summary is not complete, and the full text of the Tax Levy Limitation Law should be read in order to understand the details and implementations thereof. The Tax Levy Limitation Law imposes a limitation on increases in the real property tax levy, subject to certain exceptions. The Tax Levy Limitation Law permits the Village to increase its overall real property tax levy over the tax levy of the prior year by no more than the “Allowable Levy Growth Factor,” which is the lesser of one and two-one hundredths or the sum of one plus the Inflation Factor; provided, however that in no case shall the levy growth factor be less than one. The “Inflation Factor” is the quotient of: (i) the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the coming fiscal year minus the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the prior fiscal year, divided by (ii) the average of the National Consumer Price Indexes determined by the United States with the result expressed as a decimal to four places. The Village is required to calculate its tax levy limit for the upcoming year in accordance with the provision above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The Tax Levy Limitation Law sets forth certain exclusions to the real property tax levy limitation of the Village, including exclusions for certain portions of the expenditures for retirement system contributions and tort judgments payable by the Village. The Village Board of Trustees may adopt a budget that exceeds the tax levy limit for the coming fiscal year, only if the Board first enacts, by a vote of at least sixty percent of the total voting power of the Board, a local law to override such limit for such coming fiscal year. C. Excess of Actual Expenditures over budget – Capital Projects Fund The following capital projects exceeded their budgetary provisions by the amounts indicated: Capital Projects Fund Sidewalks and Curbs $ 56,060 DPW Vehicles 2017/18 IT Server Upgrade 1,200 Police Electric Hybrid Vehicle Speed Recorders D. Capital Projects Fund Deficits The deficits in various individual projects arise in-part because of the application of generally accepted accounting principles to the financial reporting of such funds. The proceeds of bond anticipation notes issued to finance construction of capital projects are not recognized as an “other financing source”. Liabilities for bond anticipation notes payable are accounted for in the Capital Projects Fund. Bond anticipation notes are recognized as revenue only to the extent that they are redeemed. This deficit will be reduced and eliminated as the bond anticipation notes are redeemed from interfund transfers from other governmental funds or converted to permanent financing. Other deficits, where no bond anticipation notes were issued or outstanding to the extent of the project deficit, arise because of expenditures exceeding current financing on the projects. These deficits will be eliminated with the subsequent receipt or issuance of authorized financing. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 2 - Stewardship, Compliance and Accountability (Continued) E. Expenditures in Excess of Budget The following functional expenditures exceeded their budgetary authorizations by the amounts indicated: General Fund: State retirement $ 31,243 State retirement - Police and Fire 30,330 Health insurance Water Fund: State retirement 1,533 F. Cumulative Effect of Change in Accounting Principle The Village implemented the provisions of GASB Statement No. 101, “Compensated Absences”, for the year ended May 31, 2025. In addition to the value of unused leave time owed to employees upon separation from employment, the Village now also recognizes as part of the compensated absences liability an estimated amount of unused leave earned as of year-end that will be used by employees as time off in future years. As a result, the Village has reported a cumulative effect of a change in accounting principle, decreasing the beginning net position to the June 1, 2024 net position of governmental activities of ($777,387). The implementation of GASB Statement No. 101 affected the government-wide financial statements, which are reported using the economic resources measurement focus and accrual basis of accounting. Fund financial statements for governmental funds were not affected, as those continue to recognize compensated absences only when payments become due. Note 3 - Detailed Notes on All Funds A. Investments Investment of the Fire Service Award Program are invested in accordance with a statutory prudent person rule and in accordance with an investment policy adopted by the Village. The Village had the following investments with average maturities and credit ratings in its Service Awards Program. Type of Investment Bond funds $ 430,467 $ - $ 33,302 $ 364,398 $ 32,767 Certificates of deposit 535,589 535,589 - - - U.S. and international equities funds 609,631 609,631 - - - Other 88,634 88,634 - - - $ 1,664,321 $ 1,233,854 $ 33,302 $ 364,398 $ 32,767 Type of Investment Bond funds $ 430,467 $ - $ 182,586 $ 181,812 $ 66,069 $ - Certificates of deposit 535,589 535,589 - - - - U.S. and international equities funds 609,631 609,631 - - - - Other 88,634 88,634 - - - - $ 1,664,321 $ 1,233,854 $ 182,586 $ 181,812 $ 66,069 $ - Fair 1-5 6-10 Value N/A Years Years Thereafter Value N/A A or better BBB BB B or less Fair Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Investments in bond funds and U.S. and international equities fund are valued using Level one inputs. Certificates of deposits are not subject to the fair value hierarchy. B. Taxes Receivable Taxes receivable at May 31, 2025 consisted of the following: Property acquired for taxes $ 34,284 Less - Allowance for uncollectible amounts (34,284) $ - C. Leases Receivable The Village has entered into lease agreements of real property. The leases are effective through May 2078. Lease income during 2025 was $351,994 and interest revenue was $139,350. As of May 31, 2025, the leases receivable for the Village was $9,036,726 and the deferred inflows of resources was $8,945,805. The following is a summary of the principal and interest requirements to maturity for the Village's lease receivable. Years Ended $ 392,948 $ 252,817 357,733 242,961 321,415 233,632 300,683 224,924 306,942 216,322 2031-2035 1,642,440 943,882 2036-2040 1,765,160 701,161 2041-2045 2,037,818 428,504 2046-2050 1,544,474 131,977 2051-2055 45,951 50,759 2056-2060 53,029 43,681 2061-2065 61,197 35,513 2066-2070 70,624 26,087 2071-2075 81,502 15,208 2076-2078 54,810 3,217 $ 9,036,726 $ 3,550,645 Interest Principal Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) D. Due From/To Other Funds The balances reflected as due from/to other funds at May 31, 2025 were as follows: Fund General $ 762,942 $ 893,613 Water 6,992 748,285 Debt Service 18,003 - Capital Projects 1,137,623 22,816 Non-Major Governmental 111,442 372,288 $ 2,037,002 $ 2,037,002 Due Due From To The outstanding balance between funds results mainly from the time lag between the dates that 1) interfund goods and services are provided or reimbursable expenditures occur, 2) transactions are recorded in the accounting system and 3) payments between funds are made. E. Capital Assets Changes in the Village’s capital assets are as follows: Deletions Capital Assets, not being depreciated: Land $ 4,773,011 $ - $ - $ 4,773,011 Construction-in-progress 5,297,925 3,763,157 7,755,905 1,305,177 Total Capital Assets, not being depreciated $ 10,070,936 $ 3,763,157 $ 7,755,905 $ 6,078,188 Capital Assets, being depreciated: Buildings and improvements $ 17,577,296 $ 1,484,696 $ - $ 19,061,992 Machinery and equipment 15,523,649 3,763,268 - 19,286,917 Infrastructure 63,280,102 2,840,863 - 66,120,965 Total Capital Assets, being depreciated 96,381,047 8,088,827 - 104,469,874 Less Accumulated Depreciation for: Buildings and improvements 9,612,808 683,042 - 10,295,850 Machinery and equipment 11,625,918 1,064,968 - 12,690,886 Infrastructure 31,077,913 1,226,016 - 32,303,929 Total Accumulated Depreciation 52,316,639 2,974,026 - 55,290,665 Total Capital Assets, being depreciated, net $ 44,064,408 $ 5,114,801 $ - $ 49,179,209 Capital Assets, net $ 54,135,344 $ 8,877,958 $ 7,755,905 $ 55,257,397 Balance June 1, May 31, Balance Additions Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Depreciation expense was charged to the Village’s functions and programs as follows: General Government Support $ 387,882 Public Safety 525,590 Health 69,598 Transportation 1,125,092 Culture and Recreation 270,667 Home and Community Services 595,197 $ 2,974,026 F. Accrued Liabilities Accrued liabilities at May 31, 2025 were as follows: Payroll and Employee Benefits $ 406,364 $ 15,833 $ $ 422,660 Total Fund Water Non-Major Governmental Funds Fund General G. Short-Term Capital Borrowings - Bond Anticipation Notes The schedule below details the changes in short-term capital borrowings. Original Issue Maturity Purpose Date Date Various 12/9/2021 9/26/2025 3.75 % $ 99,555 $ - $ 33,185 $ 66,370 Various 9/29/2022 9/26/2025 3.75 150,976 - 53,244 97,732 Various 9/28/2023 9/26/2025 3.75 522,575 - 112,515 410,060 Various 9/26/2024 9/26/2025 3.75 - 402,200 - 402,200 $ 773,106 $ 402,200 $ 198,944 $ 976,362 May 31, Balance Redemptions Balance Interest Rate Issues New June 1, Liabilities for bond anticipation notes are generally accounted for in the Capital Projects Fund. Bond anticipation notes issued for judgments or settled claims are recorded in the fund paying the claim. Principal payments on bond anticipation notes must be made annually. State law requires that bond anticipation notes issued for capital purposes or judgments be converted to long-term obligations generally within five years after the original issue date. However, bond anticipation notes issued for assessable improvement projects may be renewed for periods equivalent to the maximum life of the permanent financing, provided that stipulated annual reductions of principal are made. Interest expenditures of $34,006 and $687 were recorded in the fund financial statements in the General Fund and Water Fund. Interest expense of $36,128 was recorded in the government-wide financial statements for governmental activities. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) H. Long-Term Liabilities The following table summarizes changes in the Village’s long-term liabilities for the year ended May 31, 2025: General Obligation Bonds Payable $ 30,374,620 $ - $ 30,374,620 $ 1,288,400 $ 2,554,620 $ 29,108,400 $ 2,543,400 Plus Unamortized premium on bonds 1,400,970 - 1,400,970 - 164,647 1,236,323 - 31,775,590 - 31,775,590 1,288,400 2,719,267 30,344,723 2,543,400 Other Non-Current Liabilities: Net Pension Liability-ERS 2,549,499 - 2,549,499 417,124 - 2,966,623 - Net Pension Liability-PFRS 3,323,464 3,323,464 869,337 - 4,192,801 - Total Pension Liability - Length of service award program 2,481,895 - 2,481,895 92,499 98,403 2,475,991 - Compensated Absences 2,227,756 777,387 3,005,143 - ** 33,896 2,971,247 297,000 Other Postemployment Benefit Liability 39,861,293 - 39,861,293 6,110,209 7,087,180 38,884,322 1,372,106 Total Other Non- Current Liabilities 50,443,907 51,221,294 7,489,169 7,219,479 51,490,984 1,669,106 Total Long-Term Liabilities $ 82,219,497 $ 777,387 $ 82,996,884 $ 8,777,569 $ 9,938,746 $ 81,835,707 $ 4,212,506 *See Note 2F. ** The change in the compensated absences liability is presented as a net change. Due Within One Year New Issues/ Additions and/or Payments May 31, Maturities Balance Balance As Reported, June 1, 2024 Change in Accounting Principle * Balance June 1, 2024 Cumulative Effect of Each governmental fund's liability for net pension liability, total pension liability – length of service award program, compensated absences and other postemployment benefit obligations is liquidated by the General, Water and Sewer funds. The Village's indebtedness for general obligation bonds and installment purchase debt is liquidated by the Debt Service Fund which is funded by the General, Water and Sewer Funds. General Obligation Bonds Payable General obligation bonds payable at May 31, 2025 are comprised of the following individual issues: Year of Final Purpose Issue Maturity Various Purposes $ 4,360,531 January, 2040 2.500-5.00 % $ 3,005,000 Refunding Bond 2,035,000 July, 2026 4.000 480,000 Various Purposes 8,578,200 April, 2036 3.000 5,290,000 Various Purposes 1,331,780 February, 2032 2.250-3.00 690,000 Various Purposes 1,616,700 December, 2032 2.250-3.00 920,000 Various Purposes 640,000 May, 2034 4.000-5.00 435,000 Refunding Bond 4,585,000 May, 2030 5.000 2,055,000 Various Purposes 3,335,400 December, 2036 2.000-2.25 2,470,000 Various Purposes 2,609,990 October, 2038 1.000-2.00 2,070,000 Refunding Bond 8,350,000 April, 2044 2.000-4.00 6,675,000 Various Purposes 740,000 October, 2040 2.000-4.00 655,000 Various Purposes 886,500 October, 2040 4.000-4.50 840,000 Various Purposes 2,269,620 September, 2043 3.000-4.00 2,235,000 Various Purposes 1,288,400 September, 2040 1.000-4.00 1,288,400 $ 29,108,400 Amount Outstanding at May 31, Original Issue Amount Interest Rates Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Interest expenditures of $985,263 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $806,089 was recorded in the government-wide financial statements for governmental activities. Payments to Maturity The annual requirements to amortize all bonded and installment purchase debt outstanding as of May 31, 2025, including interest payments of $6,282,113 are as follows: Year Ending May 31, $ 2,543,400 $ 914,284 2,675,000 804,069 2,505,000 715,606 2,130,000 628,281 2,190,000 559,009 2031-2035 9,440,000 1,827,763 2036-2040 5,555,000 703,538 2041-2044 2,070,000 129,563 $ 29,108,400 $ 6,282,113 General Obligation Principal Interest Bonds The above general obligation bonds are direct borrowings of the Village for which its full faith and credit are pledged and are payable from taxes levied on all taxable real property located within the Village. Legal Debt Margin The Village is subject to legal limitations on the amount of debt that it may issue. The Village’s legal debt margin is 7% of the five-year average full valuation of taxable real property. Pension Plans New York State and Local Retirement System The Village participates in the New York State and Local Employees’ Retirement System (“ERS”) and the New York State and Local Police and Fire Retirement System (“PFRS”) which are collectively referred to as the New York State and Local Retirement System (“System”). These are cost-sharing, multiple-employer defined benefit pension plans. The System provides retirement benefits as well as death and disability benefits. The net position of the System is held in the New York State Common Retirement Fund (“Fund”), which was established to hold all assets and record changes in fiduciary net position. The Comptroller of the State of New York serves as the trustee of the Fund and is the administrative head of the System. The Comptroller is an elected official determined in a direct statewide election and serves a four year term. Obligations of employers and employees to contribute and benefits to employees are governed by the New York State Retirement and Social Security Law (“NYSRSSL”). Once a public Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) employer elects to participate in the System, the election is irrevocable. The New York State Constitution provides that pension membership is a contractual relationship and plan benefits cannot be diminished or impaired. Benefits can be changed for future members only by enactment of a State statute. The Village also participates in the Public Employees’ Group Life Insurance Plan, which provides death benefits in the form of life insurance. The System is included in the State’s financial report as a pension trust fund. That report, including information with regard to benefits provided may be found at www.osc.state.ny.us/retire/about_us/financial_ statements_index.php or obtained by writing to the New York State and Local Retirement System, 110 State Street, Albany, NY 12244. The System is noncontributory except for employees who joined after July 27, 1976, who contribute 3% of their salary for the first ten years of membership, and employees who joined on or after January 1, 2010, who generally contribute between 3% and 6% of their salary for their entire length of service. Under the authority of the NYSRSSL, the Comptroller annually certifies the actuarially determined rates expressly used in computing the employers’ contributions based on salaries paid during the System’s fiscal year ending March 31. The employer contribution rates for the plan’s year ended March, 31, 2025 are as follows: Tier/Plan Rate ERS 3 A14/41J 17.8% 4 A15/41J 17.8 5 A15/41J 15.3 6 A15/41J 11.3 PFRS 2 384D 34.8% 5 384D* 30.0 5 384D 33.2 6 384D* 24.3 * Indicates employees are required to make contributions for this PFRS tier/plan. At May 31, 2025, the Village reported the following for its proportionate share of the net pension liability for ERS and PFRS: Measurement date Net pension liability $ 2,966,623 $ 4,192,801 Villages' proportion of the net pension liability 0.0173024 % 0.0689962 % Change in proportion since the prior measurement date (0.0000128) % (0.0010773) % March 31, 2025 March 31, 2025 PFRS ERS The net pension liability was measured as of March 31, 2025 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Village’s proportion of the net pension liability was based on a computation of the actuarially determined indexed present value of future compensation by employer relative to the total of all participating members. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) For the year ended May 31, 2025, the Village recognized its proportionate share of pension expense in the government-wide financial statements of $587,831 for ERS and $1,040,938 for PFRS. Pension expenditures of $842,346 for ERS and $1,146,561 for PFRS were recorded in the fund financial statements and were charged to the following funds: $ 774,553 $ 1,146,561 Water Fund 65,784 - Sewer Fund 2,009 - $ 842,346 $ 1,146,561 ERS PFRS At May 31, 2025, the Village reported its proportionate share of deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience $ 736,336 $ 34,733 $ 1,396,566 $ - Changes of assumptions 124,414 - 629,597 - Net difference between projected and actual earnings on pension plan investments 232,753 - 161,158 - Changes in proportion and differences between Village contributions and proportionate share of contributions 2,438 61,451 200,878 126,546 Village contributions subsequent to the measurement date 162,098 - 201,061 - $ 1,258,039 $ 96,184 $ 2,589,260 $ 126,546 Differences between expected and actual experience $ 2,132,902 $ 34,733 Changes of assumptions 754,011 - Net difference between projected and actual earnings on pension plan investments 393,911 - Changes in proportion and differences between Village contributions and proportionate share of contributions 203,316 187,997 Village contributions subsequent to the measurement date 363,159 - $ 3,847,299 $ 222,730 Outflows Inflows Outflows Inflows of Resources of Resources of Resources of Resources ERS PFRS Deferred Deferred Deferred Deferred of Resources of Resources Total Deferred Deferred Outflows Inflows Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) $162,098 and $201,061 reported as deferred outflows of resources related to ERS and PFRS, respectively, resulting from the Village’s accrued contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended March 31, 2026. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to ERS and PFRS will be recognized in pension expense as follows: Year Ended March 31, $ 488,747 $ 1,084,118 742,134 668,470 (258,059) 62,942 26,935 299,226 - 146,897 $ 999,757 $ 2,261,653 ERS PFRS The total pension liability for the March 31, 2025 measurement date was determined by using an actuarial valuation date as noted below, with update procedures used to roll forward the total pension liabilities to that measurement date. Significant actuarial assumptions used in the valuation were as follows: ERS PFRS Measurement Date March 31, 2025 March 31, 2025 Actuarial valuation date April 1, 2024 April 1, 2024 Investment rate of return 5.9% * 5.9% * Salary scale 4.3% 6.0% Inflation rate 2.9% 2.9% Cost of living adjustments 1.5% 1.5% *Compounded annually, net of pension plan investment expenses, including inflation. Annuitant mortality rates are based on the System’s experience with adjustments for mortality improvements based on Society of Actuaries Scale MP-2021. The actuarial assumptions used in the valuation are based on the results of an actuarial experience study for the period April 1, 2015 - March 31, 2020. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected return, net of investment expenses and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Best estimates of arithmetic real rates of return for each major asset class included in the target asset allocation is summarized in the following table. Asset Type Domestic Equity 25 % 3.54 % International Equity 6.57 Private Equity 7.25 Real Estate 4.95 Opportunistic/ARS Portfolio 5.25 Credit 5.40 Real Assets 5.55 Fixed Income 2.00 Cash 0.25 100 % Long-Term Expected Target Real Rate Allocation of Return The real rate of return is net of the long-term inflation assumption of 2.9%. The discount rate used to calculate the total pension liability was 5.9%. The projection of cash flows used to determine the discount rate assumes that contributions from plan members will be made at the current contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based upon those assumptions, the System’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. The following presents the Village’s proportionate share of the net pension liability calculated using the discount rate of 5.9%, as well as what the Village’s proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is 1 percentage point lower (4.9%) or 1 percentage point higher (6.9%) than the current rate: Village's proportionate share of the ERS net pension liability (asset) $ 8,585,779 $ 2,966,623 $ (1,725,377) Village's proportionate share of the PFRS net pension liability (asset) $ 8,840,698 $ 4,192,801 $ 356,630 (4.9%) (5.9%) (6.9%) 1% Current 1% Decrease Discount Rate Increase Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) The components of the collective net pension liability as of the March 31, 2025 measurement date were as follows: Total pension liability $ 247,600,239,000 $ 48,718,477,000 $ 296,318,716,000 Fiduciary net position 230,454,512,000 42,641,620,000 273,096,132,000 Employers' net pension liability $ 17,145,727,000 $ 6,076,857,000 $ 23,222,584,000 Fiduciary net position as a percentage of total pension liability 93.08% 87.53% 92.16% ERS PFRS Total Employer contributions to ERS and PFRS are paid annually and cover the period through the end of the System’s fiscal year, which is March 31st. Retirement contributions as of May 31, 2025 represent the employer contribution for the period of April 1, 2025 through May 31, 2025 based on paid ERS and PFRS wages multiplied by the employers’ contribution rate, by tier. Employee contributions are remitted monthly. Accrued retirement contributions to ERS and PFRS as of May 31, 2025 were $162,098 and $201,061, respectively. Voluntary Defined Contribution Plan The Village can offer a defined contribution plan to all non-union employees hired on or after July 1, 2013 and earning at the annual full-time salary rate of $75,000 or more. The employee contribution is between 3% and 6% depending on salary and the Village will contribute 8%. Employer contributions vest after 366 days of service. No current employees participated in this program. Defined Benefit - Fire Service Award Program The Village’s financial statements are for the year ended May 31, 2025. The information contained in this note is based on information for the Croton Volunteer Fire Department Length of Service Award Program for the program year ending on December 31, 2024, which is the most recent program year for which complete information is available. The Program is accounted for in the Village’s financial statements within the General Fund - Fire Service Award Program – sub-fund. Plan description The Village established a defined benefit Service Award Program (referred to as a “LOSAP” - Length of Service Award Program - under Section 457(e)(11) of the Internal Revenue Code) effective January 1, 2000, for the active volunteer firefighter members of the Village of Croton Volunteer Fire Department. This is a single employer defined benefit plan. The Program was established pursuant to Article 11-A of the New York State General Municipal Law. The Program provides municipally funded deferred compensation to volunteer firefighters to facilitate the recruitment and retention of active volunteer firefighters. The Village is the Sponsor of the Program and the Program administrator. An eligible Program Participant is defined to be an active volunteer firefighter who is at least 18 years of age and upon earning 50 or more points in a calendar year after 2000 under the provisions of the Program point system, is eligible to become a participant in the Program. Points are granted for the performance of certain activities in accordance with a system established by the Village on the basis of a statutory list of activities and point values. A participant may also receive credit for five years of firefighting service rendered prior to the establishment of the Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Program. Participants are fully vested upon attainment of entitlement age, upon death or upon general disablement and after earning five years of service credit. A participant, upon attainment of entitlement age (the later of age 62 or the participant’s age after earning 50 program points), shall be able to receive their service award, payable in the form of a ten-year certain and continuous monthly payment life annuity. Benefits provided The monthly benefits are $20 for each year of service credit, up to a maximum of 40 years. The benefits and refunds of the plan are recognized when due and payable in accordance with the terms of the plan. The Program also provides disability and death benefits. The trustees of the Program, which are members of the Village Board, are authorized to invest the funds in authorized investment vehicles. Administrative costs are paid by the Village from the General Fund. Separate financial statements are not issued by the Program. Participants covered by the benefit terms. At the December 31, 2024 measurement date, the following participants were covered by the benefit terms. Inactive participants currently receiving benefit payments Inactive participants entitled to but not yet receiving benefit payments Active participants Total Contributions New York State General Municipal Law §219(d) requires the Village to contribute an actuarially determined contribution on an annual basis. The actuarially determined contribution shall be appropriated annually by the Village. Measurement of Total Pension Liability The total pension liability on the December 31, 2024 measurement date was determined using an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability in the December 31, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Actuarial Cost Method: Entry Age Normal Inflation: 2.25% Salary Scale: None assumed Mortality rates were based on RP-2014 Male Mortality Table without projection for mortality improvement. Discount Rate. The discount rate used to measure the total pension liability was 4.28%. This was the yield to maturity of the S&P Municipal Bond 20 Year High Grade Rate Index as of December 31, 2024. In describing this index, S&P Dow Jones Indices notes that the index consists of bonds Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) in the S&P Municipal Bond Index with maturity of 20 years and with a rating of at least Aa2 by Moody’s Investors Services, AA by Fitch or AA by Standard & Poor’s Rating Services. Changes in the Total Pension Liability Balance as of 12/31/2023 measurement date 2,481,895 $ Service Cost 97,078 Interest 101,191 Changes of assumptions or other inputs (102,091) Differences between expected and actual experience (3,679) Benefit Payments (98,403) Balance as of 12/31/2024 measurement date 2,475,991 $ Sensitivity of the Total Pension Liability to changes in the discount rate. The following presents the total pension liability of the Village as of the December 31, 2024 measurement date, calculated using the discount rate of 4.28 percent, as well as what the Village’s total pension liability would be if it were calculated using a discount rate that is 1-percentage point lower (3.28 percent) or 1-percentage point higher (5.28 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (3.28%) (4.28%) (5.28%) Total Pension Liability 2,871,985 $ 2,475,991 $ 2,157,933 $ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2024, the Village recognized pension expense of $204,209 in the governmental activities and $113,729 in the Fire Service Award Program – sub-fund. At December 31, 2024, the Village reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows Inflows of Resources of Resources Differences between expected and actual experience 130,729 $ 10,208 $ Changes of assumptions or other inputs 391,583 683,421 Benefit payments & administrative expenses subsequent to the measurement date 40,533 - 562,845 $ 693,629 $ $40,533 reported as deferred outflows of resources related to pensions resulting from Village transactions subsequent to the measurement date will be recognized as a reduction of the total pension liability in the year ended May 31, 2026. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Plan Year Ended December 31 , (8,040) $ (8,040) (17,529) (19,706) (20,521) Thereafter (97,481) (171,317) $ Compensated Absences Under the terms of existing collective bargaining agreements, employees are entitled to accumulate sick and vacation leave based upon the terms of their respective collective bargaining agreements. Payments upon separation of service varies with each agreement. The Village's liability for accumulated sick and vacation leave has been recorded in the government-wide financial statements. Other Postemployment Benefit Liability (“OPEB”) In addition to providing pension benefits, the Village provides certain health care benefits for retired employees through a single employer defined benefit OPEB plan. The various collective bargaining agreements stipulate the employees covered and the percentage of contribution. Contributions by the Village may vary according to length of service. The cost of providing postemployment health care benefits is shared between the Village and the retired employee as noted below. Substantially all of the Village's employees may become eligible for those benefits if they reach normal retirement age while working for the Village. No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement No. 75, “Accounting and Financial Reporting for Postemployment Benefits Other than Pensions”, so the net OPEB liability is equal to the total OPEB liability. Separate financial statements are not issued for the plan. At May 31, 2025, the following employees were covered by the benefit terms: Inactive employees currently receiving benefit payments Active employees Total The Village’s total OPEB liability of $38,884,322 was measured as of May 31, 2025, and was determined by an actuarial valuation as of May 31, 2025. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) The total OPEB liability in the May 31, 2025 actuarial valuation was determined using the following actuarial assumptions and other inputs, applied to all periods included in the measurement, unless otherwise specified: Salary increases and inflation rate 3.00% Discount rate 4.81% Healthcare cost trend rates 7.0% for 2025, decreasing by up to 1.0% per year to an ultimate rate of 4.5% rate. Retirees' share of benefit-related costs Varies from 2% to 100%, depending on applicable retirement year and bargaining unit The discount rate was based on the Bond Buyer’s 20-year Bond Index. Mortality rates were based on the PUB 2016 mortality table projected fully generationally using projection scale MP-2021. The Village’s change in the total OPEB liability for the year ended May 31, 2025 is as follows: Total OPEB Liability - Beginning of Year $ 39,861,293 Service Cost 984,277 Interest 1,767,019 Changes in benefit terms 3,358,913 Difference between expected and actual experience (501,347) Change in assumptions or other inputs (5,213,727) Benefit payments (1,372,106) Total OPEB Liability - End of Year $ 38,884,322 The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using a discount rate that is 1 percentage point lower (3.81%) or 1 percentage point higher (5.81%) than the current discount rate: Total OPEB Liability $ 44,709,319 $ 38,884,322 $ 34,141,725 1% Current 1% Decrease Discount Rate Increase (3.81%) (4.81%) (5.81%) The following presents the total OPEB liability of the Village, as well as what the Village’s total OPEB liability would be if it were calculated using healthcare cost trend rates that are 1 percentage point lower (6.0% decreasing to 3.5%) or 1 percentage point higher (8.0% decreasing to 5.5%) than the current healthcare cost trend rates: Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Current Healthcare (7.0% decreasing Total OPEB Liability $ 33,618,088 $ 38,884,322 $ 45,581,979 1% Cost Trend 1% Decrease Rates Increase to 3.5%) to 4.5%) to 5.5%) (6.0% decreasing (8.0% decreasing For the year ended May 31, 2025, the Village recognized OPEB expense of $4,641,750 in the government-wide financial statements. At May 31, 2025, the Village reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Changes of assumptions or other inputs $ 4,358,054 $ 15,178,082 Differences between expected and actual experience 4,193,720 2,668,664 $ 8,551,774 $ 17,846,746 of Resources of Resources Deferred Deferred Outflows Inflows Amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: Year Ended May 31, $ (1,468,459) (1,630,662) (2,154,996) (2,407,976) (816,439) (816,440) $ (9,294,972) I. Revenues and Expenditures Interfund Transfers Interfund transfers are defined as the flow of assets, such as cash or goods and services, without the equivalent flow of assets in return. The interfund transfers reflected below have been reflected as transfers: Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Transfers Out General Fund $ - $ 2,382,598 $ 1,273,915 $ - $ 3,656,513 Water Fund 375,000 1,046,390 5,100 - 1,426,490 Debt Service Fund 100,000 - - - 100,000 Capital Projects Fund 70,000 1,850 - - 71,850 Non-Major Governmental Funds 50,000 110,895 355,000 - 515,895 $ 595,000 $ 3,541,733 $ 1,634,015 $ - $ 5,770,748 Fund Non-Major Governmental Funds Transfers In Fund Debt Projects Service Capital General Fund Total Transfers are used to 1) move funds from the operating funds to the Debt Service Fund as debt service principal and interest payments become due, 2) move amounts earmarked in the operating funds to fulfill commitments for Capital Projects Fund expenditures and 3) move amounts from the Capital Projects Fund to the General Fund, for unspent transfers and 4) move amounts from the Water Fund to the General Fund for shared costs 5) move amounts in the Debt Service Fund to the General Fund as principal and interest payments become due. J. Net Position The components of net position are detailed below: Net Investment in Capital Assets - the component of net position that reports the difference between capital assets less both the accumulated depreciation and the outstanding balance of debt, excluding unexpended bond proceeds, that is directly attributable to the acquisition, construction or improvement of those assets. Restricted for Debt Service - the component of net position that reports the difference between assets and liabilities with constraints placed on their use by Local Finance Law. Restricted for Special Purpose - the component of net position that reports the difference between assets and liabilities of certain programs with constraints placed on their use by either external parties and/or statute. Unrestricted - all other amounts that do not meet the definition of “restricted” or “net investment in capital assets”. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) K. Fund Balances Nonspendable: Prepaid expenditures $ 10,766 $ - $ - $ - $ - $ 10,766 $ 1,711 $ - $ - $ - $ - $ 1,711 Restricted: Employee benefits 676,636 7,283 - - - 683,919 676,636 7,071 - - - 683,707 Pension benefit 1,714,823 - - - - 1,714,823 1,593,599 - - - - 1,593,599 Tax stabilization 100,000 - - - - 100,000 64,015 - - - - 64,015 Debt service - - 25,319 - - 25,319 - - 150,896 - - 150,896 Debt service - for subsequent year's expenditures - - 225,000 - - 225,000 - - 100,000 - - 100,000 Capital projects - - - 2,583,445 - 2,583,445 - - - 1,880,176 - 1,880,176 Parklands - - - - 775,495 775,495 - - - - 767,701 767,701 Trusts - - - - 75,905 75,905 - - - - 61,200 61,200 Total Restricted 2,491,459 7,283 250,319 2,583,445 851,400 6,183,906 2,334,250 7,071 250,896 1,880,176 828,901 5,301,294 Assigned: Purchases on order: General government support 42,148 - - 42,197 72,829 - - 72,853 Public safety 34,997 - - - - 34,997 109,348 - - - - 109,348 Health 2,958 - - - - 2,958 4,198 - - - - 4,198 Transportation 7,181 - - - - 7,181 6,161 - - - - 6,161 Economic opportunity and development 15,447 - - - - 15,447 - - - - - - Culture and recreation 20,523 - - - - 20,523 6,177 - - - - 6,177 Home and community services 1,970 62,928 - - 16,421 81,319 19,578 41,811 - - 21,739 83,128 125,224 62,963 - - 16,435 204,622 218,291 41,828 - - 21,746 281,865 Subsequent year's expenditures 650,000 - - - - 650,000 675,000 - - - - 675,000 Future retirement expenditures 620,035 - - - - 620,035 290,010 - - - - 290,010 Contractual obligations - - - - - - - - - - - - Capital projects 3,150,000 - - - - 3,150,000 3,325,140 - - - - 3,325,140 Water Fund - 1,659,170 - - - 1,659,170 - 873,233 - - - 873,233 Sewer Fund - - - - 336,455 336,455 - - - - 789,450 789,450 Total Assigned 4,545,259 1,722,133 - - 352,890 6,620,282 4,508,441 915,061 - - 811,196 6,234,698 Unassigned 5,716,944 - - - - 5,716,944 6,280,011 - - - - 6,280,011 Total Fund Balances (Deficits) $ 12,764,428 $ 1,729,416 $ 250,319 $ 2,583,445 $ 1,204,290 $ 18,531,898 $ 13,124,413 $ 922,132 $ 250,896 $ 1,880,176 $ 1,640,097 $ 17,817,714 Non-Major Total Capital Debt General Service Water Projects Governmental Capital Non-Major Debt Fund Fund Governmental Fund Fund Fund Fund Fund Funds Funds Total Fund General Water Service Projects Certain elements of fund balance are described above. Those additional elements which are not reflected in the statement of net position but are reported in the governmental funds balance sheet are described below. Prepaid Expenditures has been provided to account for certain payments made in advance. The amount is classified as nonspendable to indicate that funds are not “available” for appropriation or expenditure even though they are a component of current assets. The Restriction for Employee Benefits represents funds set aside for the payment of accumulated vacation and sick leave in accordance with various collective bargaining agreements and pursuant to General Municipal Law. The Restriction for Pension Benefits represents the component of net position that has been set aside to be used for LOSAP pension benefits in accordance with Article 11-A of the General Municipal Law of the State of New York. The Restriction for Tax Stabilization represents funds set aside for an emergency to prevent a large tax increase. The Restriction for Parklands represents funds received by the Village in lieu of parklands as a condition precedent to the approval of a subdivision by the Planning Board. These funds may be used only for park, playground or recreation purposes. The funds of the Gouveia Trust account represents an endowment to be used for the care and upkeep of Gouveia Park. The Restriction for Trusts has been established to set aside funds in accordance with the terms of the grants. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2025 Note 3 - Detailed Notes on All Funds (Continued) Purchases on order are assigned and represent the Village’s intention to honor the contracts in process at year-end. The subsequent year's appropriation will be amended to provide authority to complete the transactions. Subsequent year’s expenditures represent that at May 31, 2025, the Board of Trustees has assigned the above amounts to be appropriated for the ensuing year’s budget. The future retirement expenditures represents funds set aside for the payment of future retirement expenditures. Assigned for Contractual Obligations - This assignment is used to segregate a portion of fund balance of the General Fund for contractual obligations. Assigned for Capital Projects - This assignment is used to segregate a portion of fund balance of the General Fund to be utilized for the purpose of funding future Village capital projects. Unassigned fund balance in the General Fund represents amounts not classified as nonspendable, restricted or assigned. Note 4 - Summary Disclosure of Significant Contingencies A. Litigation The Village, in common with other municipalities, receives numerous notices of claims for money damages arising from false arrest, property damage or personal injury. Of the claims currently pending, none are expected to have a material effect on the financial position of the Village, if adversely settled. There are currently pending certiorari proceedings, the results of which could require the payment of future tax refunds by the Village if existing assessment rolls are modified based on the outcome of the litigation proceedings. However, the amount of the possible refunds cannot be determined at the present time. Any payments resulting from adverse decisions will be funded in the year in which the payment is made. B. Contingencies The Village participates in various Federal grant programs. These programs may be subject to program compliance audits pursuant to the Single Audit Act. The amount of expenditures, which may be disallowed by the granting agencies cannot be determined at this time, although the Village anticipates such amounts, if any, to be immaterial. C. Risk Management The Village purchases various conventional insurance coverages to reduce its exposure to loss. The Village maintains general liability and public official’s liability insurance coverage with policy limits of $1 million per occurrence. In addition, the Village maintains an umbrella policy with a coverage limit of $10 million. The law enforcement liability policy provides coverage up to $1 million. In addition, the Village purchases workers’ compensation insurance with coverage at statutory limits. Conventional health insurance is also provided to employees. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. (This page intentionally left blank) Village of Croton-on-Hudson, New York Notes to Financial Statements (Concluded) May 31, 2025 Note 5 - Subsequent Events The Village, on September 25, 2025 issued serial bonds in the amount of $803,250. The bond proceeds will be used for various capital expenditures. The bonds mature annually through September 2041, with interest at 3.96%. The Village on September 25, 2025 issued a $1,440,738 bond anticipation note. The proceeds of the note along with $288,384 in available funds will be used to redeem $976,362 of outstanding bond anticipation notes and provide $752,760 in new money for various capital expenditures. The note is due on September 25, 2026 with interest at 3.5%. Note 6 - Recently Issued GASB Pronouncements GASB Statement No. 102, “Certain Risk Disclosures” provides guidance related to a government’s vulnerabilities due to certain concentrations or constraints. A concentration is defined as a lack of diversity related to an aspect of a significant inflow of resources or outflow of resources. A constraint is a limitation imposed on a government by an external party or by formal action of the government’s highest level of decision-making authority. Concentrations and constraints may limit a government’s ability to acquire resources or control spending. Under this Statement, a government is required to assess Whether an event or events associated with a concentration or constraint that could cause substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. The requirements of this Statement are effective for reporting periods beginning after June 15, 2024. GASB Statement No. 103, “Financial Reporting Model Improvements”, has been issued to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. The requirements of this Statement are effective for reporting periods beginning after June 15, 2025. GASB Statement No. 104, “Disclosure of Certain Capital Assets”, requires certain types of capital assets to be disclosed separately in the capital assets note disclosures. Governments must separately present lease assets, right-to-use assets from public-private or public-public partnerships, subscription assets and all other intangible assets by major class. For capital assets held for sale—assets a government has decided to sell with completion of the sale probable within one year of the financial statement date— governments must disclose the historical cost, accumulated depreciation (or amortization), and the carrying amount of any pledged debt related to those assets. This Statement affects only presentation and disclosure of capital assets, not recognition or measurement requirements. The requirements of this Statement are effective for reporting periods beginning after June 15, 2025. This is not an all-inclusive list of recently issued GASB pronouncements but rather a listing of Statements that the Village believes will most impact its financial statements. The Village will evaluate the impact this and other pronouncements may have on its financial statements and will implement them as applicable and when material. ***** Total OPEB Liability: Service cost $ 984,277 $ 965,562 $ 1,179,273 Interest 1,767,019 1,551,455 1,568,710 Changes of benefit terms 3,358,913 - - Differences between expected and actual experience (501,347) 2,372,994 (3,452,316) Changes of assumptions or other inputs (5,213,727) (830,857) (3,577,410) Benefit payments (1,372,106) (1,577,578) (1,472,194) Net Change in Total OPEB Liability (976,971) 2,481,576 (5,753,937) Total OPEB Liability – Beginning of Year 39,861,293 37,379,717 43,133,654 Total OPEB Liability – End of Year $ 38,884,322 $ 39,861,293 $ 37,379,717 Village's covered-employee payroll $ 7,981,977 $ 7,698,661 $ 7,177,398 Total OPEB liability as a percentage of covered-employee payroll 487% 518% 521% *Discount Rate 4.81% 4.40% 4.24% Notes to Schedule: See independent auditors' report. Village of Croton-on-Hudson, New York Required Supplementary Information - Schedule of Changes in the Village's Total OPEB Liability and Related Ratios Last Ten Fiscal Years (1) (2) (3) Restated for the implementation of the provisions of GASB Statement No. 75. (1) Data not available prior to fiscal year 2019 implementation of Governmental Accounting Standards Board Statement No. 75, "Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions ". (2) No assets are accumulated in a trust that meets the criteria in paragraph 4 of this Statement to pay related benefits. $ 1,766,027 $ 940,629 $ 762,647 $ 736,786 889,610 1,151,200 1,366,788 1,396,140 - - - - 1,944,641 3,709,278 (2,051,120) - (16,733,127) 7,687,580 5,900,868 1,685,609 (1,367,571) (1,252,949) (1,041,371) (1,102,051) (13,500,420) 12,235,738 4,937,812 2,716,484 56,634,074 44,398,336 39,460,524 36,744,040 (3) $ 43,133,654 $ 56,634,074 $ 44,398,336 $ 39,460,524 $ 6,935,501 $ 7,179,336 $ 8,820,034 $ 8,820,000 622% 789% 503% 447% 3.70% 1.59% 2.63% 3.51% Village's proportion of the net pension liability (asset) 0.0173024% 0.0173152% 0.0174606% 0.0178650% Village's proportionate share of the net pension liability (asset) $ 2,966,623 $ 2,549,499 $ 3,744,258 $ (1,460,394) Village's covered payroll $ 5,601,685 $ 5,276,179 $ 4,619,584 $ 4,783,933 Village's proportionate share of the net pension liability (asset) as a percentage of its covered payroll 52.96% 48.32% 81.05% (30.53%) Plan fiduciary net position as a percentage of the total pension liability 93.08% 93.88% 90.78% 103.65% Discount Rate 5.90% 5.90% 5.90% 5.90% Contractually required contribution $ 810,253 $ 639,706 $ 551,631 $ 789,905 Contributions in relation to the contractually required contribution (810,253) (639,706) (551,631) (789,905) Contribution excess $ - $ - $ - $ - Village's covered payroll $ 5,684,729 $ 5,306,403 $ 4,686,425 $ 4,738,948 Contributions as a percentage of covered payroll 14.25% 12.06% 11.77% 16.67% See independent auditors' report. Village of Croton-on-Hudson, New York Required Supplementary Information New York State and Local Employees' Retirement System Last Ten Fiscal Years 2022 (3) 2024(3) Schedule of the Village's Proportionate Share of the Net Pension Liability (Asset) (1) 2023 (2) Schedule of Contributions 2025(2) (1) The amounts presented for each fiscal year were determined as of the March 31, measurement date within the current fiscal year. (2) Increase in the Village's proportionate share of the net pension liability mainly attributable to decrease in plan fiduciary net position due to investment losses. (3) Decrease in the Village's proportionate share of the net pension liability mainly attributable to increase in plan fiduciary net position due to investment gains. 0.0177371% 0.0197402% 0.0196808% 0.0206840% 0.0205204% 0.0200875% $ 17,662 $ 5,227,312 $ 1,394,445 $ 667,565 $ 1,928,144 $ 3,224,099 $ 4,826,651 $ 4,992,669 $ 5,173,650 $ 5,100,191 $ 5,117,569 $ 4,878,324 0.37% 104.70% 26.95% 13.09% 37.68% 66.09% 99.95% 86.39% 96.27% 98.24% 94.70% 97.90% 5.90% 6.80% 7.00% 7.00% 7.00% 7.00% $ 755,833 $ 754,473 $ 757,401 $ 773,967 $ 742,631 $ 851,684 (755,833) (754,473) (757,401) (773,967) (742,631) (851,684) $ - $ - $ - $ - $ - $ - $ 4,923,858 $ 4,918,388 $ 5,106,990 $ 5,168,567 $ 4,981,026 $ 4,810,512 15.35% 15.34% 14.83% 14.97% 14.91% 17.70% 2020 (2) 2021 (3) Village's proportion of the net pension liability 0.0689962% 0.0700735% 0.0692385% 0.0744281% Village's proportionate share of the net pension liability $ 4,192,801 $ 3,323,464 $ 3,815,368 $ 422,785 Village's covered payroll $ 3,599,157 $ 3,577,174 $ 3,446,277 $ 2,956,251 Village's proportionate share of the net pension liability as a percentage of its covered payroll 116.49% 92.91% 110.71% 14.30% Plan fiduciary net position as a percentage of the total pension liability 87.53% 89.72% 87.43% 98.66% Discount rate 5.90% 5.90% 5.90% 5.90% Contractually required contribution $ 1,112,710 $ 865,162 $ 787,007 $ 784,725 Contributions in relation to the contractually required contribution (1,112,710) (865,162) (787,007) (784,725) Contribution excess $ - $ - $ - $ - Village's covered payroll $ 3,604,988 $ 3,874,244 $ 3,582,757 $ 2,985,672 Contributions as a percentage of covered payroll 30.87% 22.33% 21.97% 26.28% See independent auditors' report. Village of Croton-on-Hudson, New York Required Supplementary Information New York State and Local Police and Fire Retirement System Last Ten Fiscal Years 2022 (3) 2024 (3) Schedule of the Village's Proportionate Share of the Net Pension Liability (1) 2023 (2) Schedule of Contributions 2025 (2) (1)The amounts presented for each fiscal year were determined as of the March 31, measurement date withing the current fiscal year. (2) Increase in the Village's proportionate share of the net pension liability mainly attributable to decrease in plan fiduciary net position due to investment losses. (3) Decrease in the Village's proportionate share of the net pension liability mainly attributable to increase in plan fiduciary net position due to investment gains. 0.0784524% 0.0814350% 0.0708670% 0.0777509% 0.0758163% 0.0798780% $ 1,362,150 $ 4,352,650 $ 1,188,485 $ 785,873 $ 1,571,408 $ 2,365,019 $ 2,801,190 $ 3,007,375 $ 2,849,777 $ 2,791,364 $ 2,923,361 $ 2,860,350 48.63% 144.73% 41.70% 28.15% 53.75% 82.68% 95.79% 84.86% 95.09% 96.93% 93.50% 90.20% 5.90% 6.80% 7.00% 7.00% 7.00% 7.00% $ 716,842 $ 661,366 $ 649,105 $ 703,784 $ 675,384 $ 627,862 (716,842) (661,366) (649,105) (703,784) (675,384) (627,862) $ - $ - $ - $ - $ - $ - $ 2,800,430 $ 2,946,420 $ 2,904,160 $ 2,777,635 $ 2,826,988 $ 2,827,318 25.60% 22.45% 22.35% 25.34% 23.89% 22.21% 2020 (2) 2021 (3) Total Pension Liability Service Cost 97,078 $ 68,003 $ 116,408 $ 119,225 $ Interest 101,191 84,836 58,037 50,586 Changes of assumptions or other inputs (102,091) 94,236 (681,279) (126,546) Differences between expected and actual experience (3,679) 88,361 28,266 19,896 Changes in plan provisions - 290,843 - - Benefit payments (98,403) (89,480) (101,712) (79,188) Net Change in total pension liability (5,904) 536,799 (580,280) (16,027) Total pension liability – beginning 2,481,895 1,945,096 2,525,376 2,541,403 Total pension liability – ending 2,475,991 $ 2,481,895 $ 1,945,096 $ 2,525,376 $ Covered payroll N/A N/A N/A N/A Total pension liability as a percentage of covered payroll N/A N/A N/A N/A Notes to Required Supplementary information Changes in assumptions or other inputs. The discount rate used to measure the total pension liability was based on the yield to maturity of the S&P Municipal Bond 20 Year High Grade Rate Index on December 31, 2017 through 2022 and was as follows: Discount rate 4.28% 4.00% 4.31% 2.24% See independent auditors' report. (1) Data not available prior to fiscal year 2016 implementation of Government Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions ". Required Supplementary Information - Schedule of Changes in the Village's Total Pension Liability and Related Ratios - Fire Service Award Program Last Ten Fiscal Years (1) Village of Croton-on-Hudson, New York Trust Assets. There are no assets accumulated in a trust that meets the criteria in paragraph 4 of the GASB No. 73 to pay related benefits. 73,174 $ 67,846 $ 79,926 $ 71,769 $ 65,473 67,746 60,698 61,926 467,429 105,130 (132,769) 146,667 47,825 (19,050) 5,233 17,665 - - - - (95,422) (64,100) (57,280) (51,740) 558,479 157,572 (44,192) 246,287 1,982,924 1,825,352 1,869,544 1,623,257 2,541,403 $ 1,982,924 $ 1,825,352 $ 1,869,544 $ N/A N/A N/A N/A N/A N/A N/A N/A 1.93% 3.26% 3.64% 3.16% (This page intentionally left blank) Village of Croton-on-Hudson, New York General Fund Combining Balance Sheet - Sub-Funds May 31, 2025 (With Comparative Actuals for 2024) ASSETS Cash and equivalents $ 11,714,357 $ 55,842 $ 11,770,199 $ 9,794,481 Investments 762,366 1,664,321 2,426,687 3,613,656 Taxes receivable Property acquired for taxes 34,284 - 34,284 34,055 Allowance for uncollectible taxes (34,284) - (34,284) (34,055) - - - - - Other receivables Accounts 139,153 - 139,153 129,100 State and Federal aid 1,301 - 1,301 102,945 Due from other governments 573,511 - 573,511 443,947 Leases 9,036,726 - 9,036,726 2,036,755 Due from other funds 762,942 - 762,942 1,903,178 10,513,633 - 10,513,633 4,615,925 Prepaid expenditures 10,766 - 10,766 1,711 Total Assets $ 23,001,122 $ 1,720,163 $ 24,721,285 $ 18,025,773 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 315,785 $ 5,340 $ 321,125 $ 161,970 Accrued liabilities 406,364 - 406,364 344,197 Deposits payable 335,850 - 335,850 298,888 Employee payroll deductions 186,728 - 186,728 178,767 Due to other funds 893,613 - 893,613 1,177,544 Unearned revenues 867,372 - 867,372 750,019 Total Liabilities 3,005,712 5,340 3,011,052 2,911,385 Deferred inflows of resources Leases 8,945,805 - 8,945,805 1,989,975 Total Liabilities and Deferred Inflows of Resources 11,951,517 5,340 11,956,857 4,901,360 Fund balances Nonspendable 10,766 - 10,766 1,711 Restricted 776,636 1,714,823 2,491,459 2,334,250 Assigned 4,545,259 - 4,545,259 4,508,441 Unassigned 5,716,944 - 5,716,944 6,280,011 Total Fund Balances 11,049,605 1,714,823 12,764,428 13,124,413 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 23,001,122 $ 1,720,163 $ 24,721,285 $ 18,025,773 Fire Totals Service Award General Program See independent auditors' report. Village of Croton-on-Hudson, New York General Fund Combining Schedule of Revenues, Expenditures and Changes in Fund Balances - Sub-Funds Year Ended May 31, 2025 (With Comparative Actuals for 2024) REVENUES Real property taxes $ 13,246,236 $ - $ - Other tax items 82,821 - - Non-property taxes 2,542,868 - - Departmental income 4,534,027 116,330 (116,330) Net change in fair value of investments - 38,712 - Use of money and property 1,221,725 60,446 - Licenses and permits 390,720 - - Fines and forfeitures 434,811 - - Sale of property and compensation for loss 102,772 - - State aid 262,790 - - Federal aid - - - Miscellaneous 44,152 - - Total Revenues 22,862,922 215,488 (116,330) EXPENDITURES Current General government support 3,917,137 - - Public safety 5,028,013 94,264 - Health 720,882 - - Transportation 2,308,864 - - Economic opportunity and development 47,198 - - Culture and recreation 876,598 - - Home and community services 1,365,574 - - Employee benefits 6,038,483 - (116,330) Debt Service Interest 34,006 - - Total Expenditures 20,336,755 94,264 (116,330) Excess (Deficiency) of Revenues Over Expenditures 2,526,167 121,224 - OTHER FINANCING SOURCES (USES) Insurance recoveries 54,137 - - Transfers in 595,000 - - Transfers out (3,656,513) - - Total Other Financing Uses (3,007,376) - - Net Change in Fund Balances (481,209) 121,224 - FUND BALANCES Beginning of Year 11,530,814 1,593,599 - End of Year $ 11,049,605 $ 1,714,823 $ - See independent auditors' report. Fire Service Award General Program Eliminations $ 13,246,236 $ 12,869,773 82,821 32,100 2,542,868 2,493,667 4,534,027 4,405,146 38,712 26,266 1,282,171 945,414 390,720 286,935 434,811 434,303 102,772 125,528 262,790 234,085 - 131,916 44,152 26,282 22,962,080 22,011,415 3,917,137 3,621,228 5,122,277 5,087,195 720,882 592,138 2,308,864 2,148,511 47,198 34,922 876,598 901,569 1,365,574 1,592,603 5,922,153 5,213,081 34,006 13,669 20,314,689 19,204,916 2,647,391 2,806,499 54,137 164,321 595,000 698,702 (3,656,513) (3,226,849) (3,007,376) (2,363,826) (359,985) 442,673 13,124,413 12,681,740 $ 12,764,428 $ 13,124,413 Totals Village of Croton-on-Hudson, New York General Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual - Sub-Fund Years Ended May 31, Original Final Variance with Budget Budget Actual Final Budget REVENUES Real property taxes $ 13,245,927 $ 13,245,927 $ 13,246,236 $ Other tax items 46,101 73,863 82,821 8,958 Non-property taxes 2,272,680 2,272,680 2,542,868 270,188 Departmental income 3,905,313 4,142,930 4,534,027 391,097 Use of money and property 661,245 771,245 1,221,725 450,480 Licenses and permits 261,900 261,900 390,720 128,820 Fines and forfeitures 380,000 380,000 434,811 54,811 Sale of property and compensation for loss 23,600 58,435 102,772 44,337 State aid 203,520 550,009 262,790 (287,219) Federal aid - - - - Miscellaneous - - 44,152 44,152 Total Revenues 21,000,286 21,756,989 22,862,922 1,105,933 EXPENDITURES Current General government support 3,922,031 3,996,104 3,917,137 78,967 Public safety 4,631,179 5,106,987 5,028,013 78,974 Health 663,184 725,911 720,882 5,029 Transportation 3,091,480 2,326,622 2,308,864 17,758 Economic opportunity and development 48,497 63,944 47,198 16,746 Culture and recreation 848,847 914,719 876,598 38,121 Home and community services 495,868 1,461,243 1,365,574 95,669 Employee benefits 6,073,708 5,978,811 6,038,483 (59,672) Debt service Interest 34,007 34,007 34,006 Total Expenditures 19,808,801 20,608,348 20,336,755 271,593 Excess of Revenues Over Expenditures 1,191,485 1,148,641 2,526,167 1,377,526 OTHER FINANCING SOURCES (USES) Insurance recoveries - 52,810 54,137 1,327 Transfers in 525,000 603,514 595,000 (8,514) Transfers out (2,609,776) (3,891,074) (3,656,513) 234,561 Total Other Financing Uses (2,084,776) (3,234,750) (3,007,376) 227,374 Net Change in Fund Balance (893,291) (2,086,109) (481,209) 1,604,900 FUND BALANCE Beginning of Year 893,291 2,086,109 11,530,814 9,444,705 End of Year $ - $ - $ 11,049,605 $ 11,049,605 See independent auditors' report. Original Final Variance with Budget Budget Actual Final Budget $ 12,871,445 $ 12,871,445 $ 12,869,773 $ (1,672) 30,001 30,001 32,100 2,099 2,172,680 2,172,680 2,493,667 320,987 3,223,956 3,503,656 4,405,146 901,490 331,411 498,567 897,367 398,800 242,800 227,300 286,935 59,635 310,000 310,000 434,303 124,303 22,600 116,460 125,528 9,068 165,000 190,088 234,085 43,997 - 272,910 131,916 (140,994) 45,347 45,347 26,282 (19,065) 19,415,240 20,238,454 21,937,102 1,698,648 3,653,990 3,751,342 3,621,228 130,114 4,591,379 5,135,264 4,999,495 135,769 589,606 606,738 592,138 14,600 2,881,308 2,163,317 2,148,511 14,806 35,781 35,781 34,922 855,307 914,238 901,569 12,669 472,404 1,618,512 1,592,603 25,909 5,407,706 5,432,014 5,429,415 2,599 13,669 13,669 13,669 - 18,501,150 19,670,875 19,333,550 337,325 914,090 567,579 2,603,552 2,035,973 - 145,493 164,321 18,828 625,000 647,139 698,702 51,563 (2,437,585) (3,226,849) (3,226,849) - (1,812,585) (2,434,217) (2,363,826) 70,391 (898,495) (1,866,638) 239,726 2,106,364 898,495 1,866,638 11,291,088 9,424,450 $ - $ - $ 11,530,814 $ 11,530,814 (This page intentionally left blank) Village of Croton-on-Hudson, New York General Fund Comparative Balance Sheet - Sub-Fund May 31, ASSETS Cash and equivalents $ 11,714,357 $ 9,746,832 Investments 762,366 2,066,506 Taxes receivable Property acquired for taxes 34,284 34,055 Allowance for uncollectible taxes (34,284) (34,055) - - Other receivables Accounts 139,153 129,100 State and Federal aid 1,301 102,945 Due from other governments 573,511 443,947 Leases 9,036,726 2,036,755 Due from other funds 762,942 1,903,178 10,513,633 4,615,925 Prepaid expenditures 10,766 1,711 Total Assets $ 23,001,122 $ 16,430,974 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 315,785 $ 160,770 Accrued liabilities 406,364 344,197 Deposits payable 335,850 298,888 Employee payroll deductions 186,728 178,767 Due to other funds 893,613 1,177,544 Unearned revenues 867,372 750,019 Total Liabilities 3,005,712 2,910,185 Deferred inflows of resources Leases 8,945,805 1,989,975 Total Liabilities and Deferred Inflows of Resources 11,951,517 4,900,160 Fund balance Nonspendable 10,766 1,711 Restricted 776,636 740,651 Assigned 4,545,259 4,508,441 Unassigned 5,716,944 6,280,011 Total Fund Balance 11,049,605 11,530,814 Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 23,001,122 $ 16,430,974 See independent auditors' report. Village of Croton-on-Hudson, New York General Fund - Sub-Fund Schedule of Revenues and Other Financing Sources Compared to Budget Year Ended May 31, 2025 (With Comparative Actuals for 2024) Original Final Variance with Budget Budget Actual Final Budget Actual REAL PROPERTY TAXES $ 13,245,927 $ 13,245,927 $ 13,246,236 $ $ 12,869,773 OTHER TAX ITEMS Interest and penalties on real property taxes 46,101 73,863 82,821 8,958 32,100 NON-PROPERTY TAXES Non-property tax distribution from County 2,025,000 2,025,000 2,287,635 262,635 2,211,264 Franchise fees 110,000 110,000 108,411 (1,589) 114,990 Utilities gross receipts taxes 135,000 135,000 140,653 5,653 165,773 Emergency Tenant Protection Act 2,680 2,680 6,169 3,489 1,640 2,272,680 2,272,680 2,542,868 270,188 2,493,667 DEPARTMENTAL INCOME Charges for Tax Redemption - - Clerk fees 6,000 6,000 12,400 6,400 16,854 Garbage removal 78,240 78,240 80,710 2,470 77,615 Parks and recreation charges 285,000 285,000 288,160 3,160 357,169 Ambulance service 611,315 611,315 659,328 48,013 599,271 Planning Board fees 6,000 6,000 11,150 5,150 9,325 Zoning fees 6,000 6,000 7,200 1,200 9,450 Fire protection services for other governments 208,778 208,778 208,778 - 188,715 Parking permits 2,665,000 2,665,000 2,968,310 303,310 2,847,795 Other 38,980 276,597 297,779 21,182 298,856 3,905,313 4,142,930 4,534,027 391,097 4,405,146 USE OF MONEY AND PROPERTY Earnings on investments 200,000 310,000 836,499 526,499 650,307 Rental of real property 461,245 461,245 385,226 (76,019) 247,060 661,245 771,245 1,221,725 450,480 897,367 LICENSES AND PERMITS Business and occupational licenses 10,000 10,000 9,575 (425) 8,610 Building permits 160,000 160,000 249,809 89,809 175,219 Dog license apportionment 5,900 5,900 7,289 1,389 8,124 Permit fees 86,000 86,000 124,047 38,047 94,982 261,900 261,900 390,720 128,820 286,935 FINES AND FORFEITURES Fines and forfeited bail 380,000 380,000 434,811 54,811 434,303 SALE OF PROPERTY AND COMPENSATION FOR LOSS Sale of equipment 3,500 38,335 43,994 5,659 99,208 Minor sales 15,100 15,100 12,362 (2,738) 14,059 Other 5,000 5,000 46,416 41,416 12,261 . 23,600 58,435 102,772 44,337 125,528 STATE AID Aid and incentives for municipalities 48,520 48,520 48,519 (1) 45,347 Mortgage tax 130,000 130,000 152,411 22,411 129,051 Snow and ice reimbursement 25,000 25,000 31,260 6,260 24,475 Emergency disaster - - - - 8,958 Other - 346,489 30,600 (315,889) 26,254 203,520 550,009 262,790 (287,219) 234,085 (Continued) (This page intentionally left blank) Village of Croton-on-Hudson, New York General Fund - Sub-Fund Schedule of Revenues Compared to Budget (Continued) Year Ended May 31, 2025 (With Comparative Actuals for 2024) Original Final Budget Budget Actual Final Budget Actual FEDERAL AID Emergency management assistance $ - $ - $ - $ - $ 131,916 MISCELLANEOUS Refund of prior year's expenditures - - 42,762 42,762 23,616 Gifts and donations - - 1,390 1,390 2,666 - - 44,152 44,152 26,282 TOTAL REVENUES 21,000,286 21,756,989 22,862,922 1,105,933 21,937,102 OTHER FINANCING SOURCES Insurance recoveries - 52,810 54,137 1,327 164,321 Transfers in Water Fund 375,000 375,000 375,000 - 297,139 Capital Projects Fund - 70,000 70,000 - 51,563 Special Purpose Fund - 8,514 - (8,514) - Sewer Fund 50,000 50,000 50,000 - 50,000 Debt Service Fund 100,000 100,000 100,000 - 300,000 TOTAL OTHER FINANCING SOURCES 525,000 656,324 649,137 (7,187) 863,023 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 21,525,286 $ 22,413,313 $ 23,512,059 $ 1,098,746 $ 22,800,125 See independent auditors' report. Variance with Village of Croton-on-Hudson, New York General Fund - Sub-Fund Schedule of Expenditures and Other Financing Uses Compared to Budget Year Ended May 31, 2025 (With Comparative Actuals for 2024) Original Final Variance with Budget Budget Actual Final Budget Actual GENERAL GOVERNMENT SUPPORT Board of Trustees $ 31,956 $ 32,771 $ 31,927 $ $ 27,099 Justice 311,303 303,738 297,897 5,841 275,509 Mayor 6,500 6,500 6,126 6,025 Clerk - Treasurer 450,146 513,773 510,036 3,737 422,265 Assessment 31,800 32,948 29,373 3,575 31,992 Manager 383,407 387,895 377,593 10,302 360,623 Data processing 56,124 58,374 58,073 112,252 Law 169,155 192,546 183,083 9,463 137,741 Engineer 639,559 640,771 624,852 15,919 571,744 Operation of plant and buildings 166,845 301,554 299,349 2,205 268,516 Auditor 44,025 44,025 42,951 1,074 36,572 Central garage 695,257 722,708 701,959 20,749 655,856 Central communications 254,602 267,970 266,133 1,837 248,192 Unallocated insurance 374,085 376,775 376,775 - 363,842 Municipal association dues 8,701 8,701 5,991 2,710 6,201 Refunds of real property taxes - 12,629 12,629 - 37,451 Taxes and assessments on property 25,943 30,499 30,499 - 26,504 Pilot - 27,762 27,762 - - Tax advertising Metropolitan transportation authority commuter mobility tax 31,723 33,265 33,265 - 32,000 Contingent account 240,000 - - - - 3,922,031 3,996,104 3,917,137 78,967 3,621,228 PUBLIC SAFETY Police 4,032,431 4,426,528 4,390,425 36,103 4,380,962 Fire Department 567,348 641,597 601,214 40,383 592,327 Control of animals 5,900 5,900 3,540 2,360 4,302 Traffic control 25,500 32,962 32,834 21,904 4,631,179 5,106,987 5,028,013 78,974 4,999,495 HEALTH Registrar of Vital Statistics 4,800 6,876 6,761 3,860 Ambulance 658,384 719,035 714,121 4,914 588,278 663,184 725,911 720,882 5,029 592,138 TRANSPORTATION Street maintenance and administration 2,640,770 1,771,929 1,768,435 3,494 1,607,180 Snow removal 164,500 243,919 243,919 - 163,922 Street lighting 8,500 12,660 11,082 1,578 8,941 Off-street parking 256,510 264,032 251,637 12,395 330,493 Brush and weeds 21,200 34,082 33,791 37,975 3,091,480 2,326,622 2,308,864 17,758 2,148,511 ECONOMIC OPPORTUNITY AND DEVELOPMENT Publicity 48,497 63,944 47,198 16,746 34,922 CULTURE AND RECREATION Arts and Humanities 7,500 7,500 5,150 2,350 4,850 Parks, playgrounds and recreation 608,978 666,267 640,191 26,076 620,452 Youth programs 127,362 123,622 123,238 120,395 Historian 1,000 2,000 1,399 Celebrations 44,852 56,175 49,554 6,621 102,975 Senior citizens programs 59,155 59,155 57,066 2,089 52,631 848,847 914,719 876,598 38,121 901,569 (Continued) Village of Croton-on-Hudson, New York General Fund - Sub-Fund Schedule of Expenditures and Other Financing Uses Compared to Budget (Continued) Year Ended May 31, 2025 (With Comparative Actuals for 2024) Original Final Variance with Budget Budget Actual Final Budget Actual HOME AND COMMUNITY SERVICES Zoning $ 6,425 $ 6,425 $ 4,398 $ 2,027 $ 5,469 Planning 10,700 10,700 8,285 2,415 38,321 Diversity and Inclusion 6,000 6,000 4,161 1,839 10,823 Recycling program 176,580 492,948 489,370 3,578 462,231 Sanitary and storm sewers 26,000 423,142 343,826 79,316 572,551 Refuse and garbage 156,013 354,981 354,342 329,780 Street cleaning 2,000 14,300 13,699 15,244 Shade trees 76,000 116,570 115,881 124,447 Community beautification 28,000 28,027 26,733 1,294 25,559 Other 8,150 8,150 4,879 3,271 8,178 495,868 1,461,243 1,365,574 95,669 1,592,603 EMPLOYEE BENEFITS State retirement 717,483 743,310 774,553 (31,243) 599,315 State retirement - Police and Fire 1,024,384 1,116,231 1,146,561 (30,330) 891,699 Service award program 220,000 116,330 116,330 - 116,334 Social security 526,060 559,603 559,603 - 536,119 Workers' compensation benefits 218,300 188,300 187,589 217,816 Life insurance 8,942 8,942 8,677 8,634 Health insurance 2,978,637 2,859,823 2,859,929 (106) 2,678,193 Dental insurance 102,931 102,931 101,900 1,031 101,736 Medicare reimbursement 272,971 283,229 283,229 - 262,697 Unemployment benefits 4,000 - 16,872 6,073,708 5,978,811 6,038,483 (59,672) 5,429,415 DEBT SERVICE Interest Bond anticipation notes 34,007 34,007 34,006 13,669 TOTAL EXPENDITURES 19,808,801 20,608,348 20,336,755 271,593 19,333,550 OTHER FINANCING USES Transfers out Capital Projects Fund 227,178 1,508,476 1,273,915 234,561 710,231 Debt Service Fund 2,382,598 2,382,598 2,382,598 - 2,516,544 Sewer Fund - - - - TOTAL OTHER FINANCING USES 2,609,776 3,891,074 3,656,513 234,561 3,226,849 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 22,418,577 $ 24,499,422 $ 23,993,268 $ 506,154 $ 22,560,399 See independent auditors' report. (This page intentionally left blank) Village of Croton-on-Hudson, New York Water Fund Comparative Balance Sheet May 31, Cash and equivalents $ 675,932 $ 342,643 Investments 761,326 323,506 Receivables Water rents 1,083,523 824,630 Due from other funds 6,992 11,275 1,090,515 835,905 Total Assets $ 2,527,773 $ 1,502,054 Liabilities Accounts payable $ 34,239 $ 17,686 Accrued liabilities 15,833 14,159 Due to other funds 748,285 548,077 Total Liabilities 798,357 579,922 Fund balance Restricted 7,283 7,071 Assigned 1,722,133 915,061 Total Fund Balance 1,729,416 922,132 Total Liabilities and Fund Balance $ 2,527,773 $ 1,502,054 ASSETS LIABILITIES AND FUND BALANCE See independent auditors' report. Village of Croton-on-Hudson, New York Water Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended May 31, Original Final Variance with Final Budget REVENUES Departmental income $ 2,939,678 $ 2,939,678 $ 3,690,060 $ 750,382 Use of money and property 5,000 5,535 44,960 39,425 Sale of property and compensation for loss - - - - Total Revenues 2,944,678 2,945,213 3,735,020 789,807 EXPENDITURES Current General government support 404,287 340,313 340,039 Home and community services 820,294 886,251 823,378 62,873 Employee benefits 334,748 335,609 337,142 (1,533) Debt service Interest - Total Expenditures 1,560,016 1,562,860 1,501,246 61,614 Excess of Revenues Over Expenditures 1,384,662 1,382,353 2,233,774 851,421 OTHER FINANCING USES Transfers out (1,426,490) (1,426,490) (1,426,490) - Net Change in Fund Balance (41,828) (44,137) 807,284 851,421 FUND BALANCE Beginning of Year 41,828 44,137 922,132 877,995 End of Year $ - $ - $ 1,729,416 $ 1,729,416 See independent auditors' report. Budget Budget Actual Original Final Variance with Final Budget $ 2,799,587 $ 2,807,735 $ 3,037,206 $ 229,471 1,000 1,000 34,932 33,932 - 10,685 11,130 2,800,587 2,819,420 3,083,268 263,848 408,001 322,362 314,187 8,175 812,856 909,712 779,378 130,334 321,422 332,807 329,105 3,702 - - - - 1,542,279 1,564,881 1,422,670 142,211 1,258,308 1,254,539 1,660,598 406,059 (1,291,392) (1,313,531) (1,313,531) - (33,084) (58,992) 347,067 406,059 33,084 58,992 575,065 516,073 $ - $ - $ 922,132 $ 922,132 Budget Actual Budget (This page intentionally left blank) Village of Croton-on-Hudson, New York Water Fund Schedule of Revenues Compared to Budget Year Ended May 31, 2025 (With Comparative Actuals for 2024) Original Final Variance with Budget Budget Actual Final Budget Actual DEPARTMENTAL INCOME Metered water sales $ 2,914,678 $ 2,914,678 $ 3,653,983 $ 739,305 $ 3,000,375 Interest and penalties on water rents 25,000 25,000 36,077 11,077 36,831 2,939,678 2,939,678 3,690,060 750,382 3,037,206 USE OF MONEY AND PROPERTY Earnings on investments 5,000 5,535 44,960 39,425 34,932 SALE OF PROPERTY AND COMPENSATION FOR LOSS Insurance recoveries - - - - 11,130 TOTAL REVENUES $ 2,944,678 $ 2,945,213 $ 3,735,020 $ 789,807 $ 3,083,268 See independent auditors' report. Village of Croton-on-Hudson, New York Water Fund Schedule of Expenditures and Other Financing Uses Compared to Budget Year Ended May 31, 2025 (With Comparative Actuals for 2024) Original Final Variance with Budget Budget Actual Final Budget Actual GENERAL GOVERNMENT SUPPORT Central communications $ 198,543 $ 219,700 $ 219,426 $ $ 196,701 Auditor 10,566 10,308 10,308 - 8,777 Unallocated insurance 100,199 105,131 105,131 - 104,385 Taxes and assessments on property 4,979 5,174 5,174 - 4,324 Contingent account 90,000 - - - - 404,287 340,313 340,039 314,187 HOME AND COMMUNITY SERVICES Water admini [...truncated...]