Documents

presentation 98 pages

Also attached to this agenda item: Final 2023 Village of Croton Mgmt. Ltr

Village of Croton-on-Hudson, New York Financial Statements and Supplementary Information Year Ended May 31, 2023 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 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 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. 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, 2023, 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, 2023, 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 Principle We draw attention to Note 2E in the notes to financial statements which discloses the effects of the Village’s adoption of the provisions of Governmental Accounting Standards Board (“GASB”) Statement No. 87, “Leases”. 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. 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, 2023 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, 2023 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, 2023 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, 2023. 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, 2022 (not presented herein), and have issued our report thereon dated November 23, 2022 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, 2022 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 2022 financial statements. The information was subjected to the audit procedures applied in the audit of the 2022 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, 2022. PKF O’Connor Davies, LLP Harrison, New York December 1, 2023 Village of Croton-on-Hudson, New York Management’s Discussion and Analysis May 31, 2023 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, 2023. 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 2023  The General Fund completed fiscal year 2023 with a fund balance totaling $12,681,740, an increase of $3,756,816 from the prior year. Of the total General Fund, the unassigned fund balance totaled $9,051,312, an increase from the prior year of $3,188,952. This large increase in unassigned fund balance resulted from the sale of property in 2022, for which the Village received payment in the amount of $2,000,000. The unassigned fund balance of $9,051,312 is 44% of the 2023-24 budgeted appropriations. The assigned classification included $173,495 for encumbrances, $725,000 for subsequent year’s expenditures, $252,931 for contractual obligations, and $311,376 for future retirement expenditures. $656,928 was restricted for employee benefits which represents accumulated vacation and sick leave in accordance with various collective bargaining agreements. In addition, $1,390,652 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 $14,367,127.  As of the close of the current fiscal year, the Village’s governmental funds reported combined ending fund balances of $16,661,126.  The Capital Projects Fund expenditures totaled $2,256,152 and the fund balance at May 31, 2023 was $1,497,008.  The Village retired $141,132 of bond anticipation notes outstanding during the current fiscal year. At May 31, 2023, the Village had $424,503 of bond anticipation notes outstanding to finance capital projects.  During the 2023 fiscal year, the Village issued $886,500 of serial bonds and retired $2,340,000 of previously outstanding indebtedness. The Village’s total outstanding general obligation bonds payable at May 31, 2023 totaled $30,536,500, exclusive of unamortized issuance premiums of $1,572,421. This represents a decrease in serial bonds of $1,453,500 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. The financial statement for the Fiduciary Fund can be found in the basic financial statements section of this report. 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 $14,367,127 for fiscal year 2023. 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. The following table reflects the condensed Statement of Net Position: Statement of Net Position Current Assets $ 21,665,773 $ 16,897,041 Capital Assets, net 53,505,394 53,876,975 Total Assets 75,171,167 70,774,016 Deferred Outflows of Resources* 17,772,108 21,293,706 Current Liabilities 3,101,798 2,495,977 Long-Term Liabilities 81,290,606 82,186,471 Total Liabilities 84,392,404 84,682,448 Deferred Inflows of Resources* 22,917,998 25,038,742 Net Position Net investment in capital assets 23,280,661 21,982,829 Restricted 1,149,902 1,263,150 Unrestricted (38,797,690) (40,899,447) Total Net Position $ (14,367,127) $ (17,653,468) 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") $ 2,346,028 $ 286,006 Employee ("ERS") 2,466,414 231,757 Fire Service Award Program 579,668 794,249 OPEB 12,190,996 19,433,510 Leases - 2,172,476 Deferred Loss on Refunding Bonds 189,002 - $ 17,772,108 $ 22,917,998 Outflows Inflows 2023 Deferred Amounts One component of the Village’s net position is net investment in capital assets of $23,280,661 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 $1,149,902 represents resources that are subject to external restrictions on their use. The restrictions are: Debt Service $ 414,823 $ 496,664 Special Purpose 735,079 766,486 Restricted Net Assets $ 1,149,902 $ 1,263,150 May31, Changes in Net Position REVENUES Program Revenues Charges for Services $ 8,262,965 $ 6,939,681 Operating Grants and Contributions 792,749 829,313 Capital Grants and Contributions 558,466 459,581 Total Program Revenues 9,614,180 8,228,575 General Revenues Real Property Taxes 12,662,904 12,347,233 Other Tax Items 33,192 33,870 Non-Property Taxes 2,465,174 2,264,667 Unrestricted Use of Money and Property 271,176 1,736 Sale of Property and Compensation for Loss 2,119,039 73,128 Unrestricted State Aid 206,397 244,186 Miscellaneous 1,424 67,410 Insurance recoveries 129,148 38,963 Total General Revenues 17,888,454 15,071,193 Total Revenues 27,502,634 23,299,768 PROGRAM EXPENSES General Government Support 5,521,632 5,202,719 Public Safety 8,010,987 6,455,935 Health 514,835 473,926 Transportation 4,377,146 4,107,990 Economic Opportunity and Development 34,771 27,633 Culture and Recreation 1,503,243 1,401,272 Home and Community Services 3,384,038 3,099,966 Interest 869,641 898,875 Total Expenses 24,216,293 21,668,316 Change in Net Position 3,286,341 1,631,452 NET POSITION Beginning, as reported (17,653,468) (19,284,920) Ending $ (14,367,127) $ (17,653,468) May 31, Year Ended Unrestricted State Aid 0.75% Non-Property Taxes 8.96% Real Property Taxes 46.04% Other 9.30% Operating Grants and Contributions 2.88% Charges for Services 30.04% Capital Grants and Contributions 2.03% Sources of Revenue for Fiscal Year 2023 Governmental Activities Home and Community Services, 13.97% Culture and Recreation, 6.21% Transportation, 18.08% Public Safety, 33.08% General Government Support, 22.80% Interest, 3.59% Health, 2.13% Economic Opportunity and Development, 0.14% Sources of Expenses for Fiscal Year 2023 Governmental Activities Governmental Activities: Governmental activities increased the Village’s net position by $3,286,341. For the fiscal year ended May 31, 2023, revenues from governmental activities totaled $27,502,634. Tax revenues of $15,161,270 consisting of real property taxes, other tax items and non-property taxes, represented the largest revenue source at 63.1%. 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, 2023 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 16,227 Prepaid Expenditures 3,819 20,046 Restricted Fund Balance Reserved for Employee Benefits 663,793 Reserved for Pension Benefits 1,390,652 Reserved for Tax Stabilization 100,000 Reserved for Debt Service 114,823 Debt Service - for Subsequent Year's Expenditures 300,000 Reserved for Capital Projects 1,497,008 Reserved for Parklands 735,004 Reserved for Trusts 4,801,355 Assigned Fund Balance Reserved for Encumbrances: General Government Support 28,090 Public Safety 102,815 Health 5,126 Transportation 11,982 Culture and Recreation 8,524 Home and Community Services 54,068 Designated for Subsequent Year's Expenditures: Unassigned Fund Balance 725,000 Designated for Future Retirement Expenditures 311,376 Contractual obligations 252,931 Water Fund 535,116 Sewer Fund 753,385 2,788,413 Unassigned Fund Balance Unreserved and Undesignated: 9,051,312 Total Fund Balances (as of May 31, 2023) $ 16,661,126 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 $16,661,126, an increase of $3,448,452 from the prior year. General Fund Budgetary Highlights When the fiscal 2022-2023 budget was adopted, it anticipated the use of $400,000 of unassigned fund balance for the balancing of the operating budget. Actual operations resulted in an increase of $3,756,816 to the overall general fund balance. Unassigned fund balance increased by $3,188,952. As mentioned previously, this significant increase in fund balance was partially related to the sale of a village-owned property in 2022 for $2,000,000. Capital Asset and Debt Administration Capital Assets: The Village’s investment in capital assets for its governmental activities as of May 31, 2023, amounted to $53,505,394 (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 8,277,974 8,901,570 Machinery and equipment 4,542,680 4,786,981 Infrastructure 33,232,221 32,874,868 Construction-in-Progress 2,679,508 2,540,545 Total $ 53,505,394 $ 53,876,975 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, 2023, the Village had total debt outstanding of $32,350,908, comprised of general obligation bonded debt of $32,108,921, inclusive of $1,572,421 of unamortized premiums, and installment purchase debt of $241,987. During the 2022-2023 fiscal year, the Village issued $886,500 of serial bonds and retired $2,340,000 of serial bonds and made principal payment of $228,097 of the installment debt. 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 $ 8,760,859 Investments 8,881,919 Receivables Accounts 121,636 Water rents 813,717 Sewer rents 125,590 State and Federal aid 294,926 Due from other governments 474,604 Leases 2,188,703 Prepaid expenses 3,819 Capital assets Not being depreciated 7,452,519 Being depreciated, net 46,052,875 Total Assets 75,171,167 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds 189,002 Pension related 4,812,442 OPEB related 12,190,996 Length of service awards programs 579,668 Total Deferred Outflows of Resources 17,772,108 LIABILITIES Accounts payable 574,321 Accrued liabilities 676,209 Deposits payable 295,145 Employee payroll deductions 15,106 Bond anticipation notes payable 424,503 Unearned revenues 846,887 Accrued interest payable 269,627 Non-current liabilities Due within one year 2,879,487 Due in more than one year 78,411,119 Total Liabilities 84,392,404 DEFERRED INFLOWS OF RESOURCES Leases 2,172,476 Pension related 517,763 OPEB related 19,433,510 Length of service awards programs 794,249 Total Deferred Inflows of Resources 22,917,998 NET POSITION Net investment in capital assets 23,280,661 Restricted Debt service 414,823 Special purpose Culture and recreation 735,079 Unrestricted (38,797,690) Total Net Position $ (14,367,127) The notes to the financial statements are an integral part of this statement. May 31, 2023 Governmental Activities Village of Croton-on-Hudson, New York Statement of Activities Year Ended May 31, 2023 Functions/Programs Governmental activities General government support $ 5,521,632 $ 556,103 $ 24,077 $ - $ (4,941,452) Public safety 8,010,987 993,722 459,632 454,044 (6,103,589) Health 514,835 433,332 - - (81,503) Transportation 4,377,146 2,516,777 242,972 - (1,617,397) Economic opportunity and development 34,771 - - - (34,771) Culture and recreation 1,503,243 316,076 47,124 38,668 (1,101,375) Home and community services 3,384,038 3,446,955 18,944 - 81,861 Interest 869,641 - - 65,754 (803,887) Total Governmental Activities $ 24,216,293 $ 8,262,965 $ 792,749 $ 558,466 (14,602,113) General revenues Real property taxes 12,662,904 Other tax items Interest and penalties on real property taxes 33,192 Non-property taxes Non-property tax distribution from County 2,166,744 Franchise fees 122,582 Utilities gross receipts taxes 174,208 Emergency Tenant Protection Act 1,640 Unrestricted use of money and property 271,176 Sale of property and compensation for loss 2,119,039 Unrestricted State aid 206,397 Miscellaneous 1,424 Insurance recoveries 129,148 Total General Revenues 17,888,454 Change in Net Position 3,286,341 Net Position - Beginning (17,653,468) Net Position - Ending $ (14,367,127) 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 $ 3,219,509 $ 944,731 $ 588,401 Investments 8,058,768 307,115 - Other receivables Accounts 120,136 - - Water rents - 813,717 - Sewer rents - - - State and Federal aid 294,926 - - Due from other governments 474,604 - - Leases 2,188,703 - - Due from other funds 3,379,030 209,361 92,213 Prepaid expenditures 3,819 - - Total Assets $ 17,739,495 $ 2,274,924 $ 680,614 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 241,021 $ 26,167 $ - Accrued liabilities 647,614 27,879 - Bond anticipation notes payable - - - Deposits payable 295,145 - - Employee payroll deductions 15,106 - - Due to other funds 839,506 1,645,813 265,791 Unearned revenues 846,887 - - Total Liabilities 2,885,279 1,699,859 265,791 Deferred inflows of resources Leases 2,172,476 - - Total Liabilities and Deferred Inflows of Resources 5,057,755 1,699,859 265,791 Fund balances Nonspendable 20,046 - - Restricted 2,147,580 6,865 414,823 Assigned 1,462,802 568,200 - Unassigned 9,051,312 - - Total Fund Balances 12,681,740 575,065 414,823 Total Liabilities and Fund Balances $ 17,739,495 $ 2,274,924 $ 680,614 The notes to the financial statements are an integral part of this statement. May 31, 2023 Water Debt Service Governmental $ 3,489,070 $ 519,148 $ 8,760,859 - 516,036 8,881,919 1,500 - 121,636 - - 813,717 - 125,590 125,590 - - 294,926 - - 474,604 - - 2,188,703 581,622 514,903 4,777,129 - - 3,819 $ 4,072,192 $ 1,675,677 $ 26,442,902 $ 302,564 $ 4,569 $ 574,321 - 676,209 424,503 - 424,503 - - 295,145 - 15,106 1,848,117 177,902 4,777,129 - - 846,887 2,575,184 183,187 7,609,300 - - 2,172,476 2,575,184 183,187 9,781,776 - - 20,046 1,497,008 735,079 4,801,355 - 757,411 2,788,413 - - 9,051,312 1,497,008 1,492,490 16,661,126 $ 4,072,192 $ 1,675,677 $ 26,442,902 Total Funds Non-Major Governmental Projects Capital 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 16,661,126 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Capital assets - non-depreciable 7,452,519 Capital assets - depreciable 95,725,599 Accumulated depreciation (49,672,724) 53,505,394 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 4,812,442 Deferred outflows - OPEB related 12,190,996 Deferred outflows - length of service awards program(s) 579,668 Deferred inflows - pension related (517,763) Deferred inflows - OPEB related (19,433,510) Deferred inflows - length of service awards program(s) (794,249) (3,162,416) 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 (269,627) General Obligation Bonds payable (30,536,500) Installment purchase debt payable (241,987) Compensated absences (2,055,259) Net pension liability-ERS (3,744,258) Net pension liability-PFRS (3,815,368) Total OPEB Liability (37,379,717) Fire Service Award Program (1,945,096) (79,987,812) 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 189,002 Premium on general obligation bonds (1,572,421) (1,383,419) Net Position of Governmental Activities (14,367,127) $ The notes to the financial statements are an integral part of this statement. May 31, 2023 Village of Croton-on-Hudson, New York Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended May 31, 2023 General REVENUES Real property taxes $ 12,662,904 $ - $ - Other tax items 33,192 - - Non-property taxes 2,465,174 - - Departmental income 3,923,791 2,901,168 - Net change in fair value of investments (254,838) - - Use of money and property 569,876 17,879 65,754 Licenses and permits 556,175 - - Fines and forfeitures 440,640 - - Sale of property and compensation for loss 2,119,039 1,065 - State aid 315,087 - - Federal aid 559,893 - - Miscellaneous 20,704 - - Total Revenues 23,411,637 2,920,112 65,754 EXPENDITURES Current General government support 3,453,108 309,002 - Public safety 4,517,155 - - Health 443,116 - - Transportation 2,119,029 - - Economic opportunity and development 34,771 - - Culture and recreation 817,153 - - Home and community services 1,109,719 775,552 - Employee benefits 4,971,498 306,816 - Debt service Principal - - 2,568,097 Interest 1,916 - 1,012,769 Capital outlay - - - Total Expenditures 17,467,465 1,391,370 3,580,866 Excess (Deficiency) of Revenues Over Expenditures 5,944,172 1,528,742 (3,515,112) OTHER FINANCING SOURCES (USES) Bonds issued - - - Insurance recoveries 129,148 - - Transfers in 502,363 - 3,608,271 Transfers out (2,818,867) (1,292,280) (175,000) Total Other Financing Sources (Uses) (2,187,356) (1,292,280) 3,433,271 Net Change in Fund Balances 3,756,816 236,462 (81,841) FUND BALANCES (DEFICIT) Beginning of Year 8,924,924 338,603 496,664 End of Year $ 12,681,740 $ 575,065 $ 414,823 The notes to the financial statements are an integral part of this statement. Water Service Debt Governmental Governmental Funds $ - $ - $ 12,662,904 - - 33,192 - - 2,465,174 - 455,427 7,280,386 - - (254,838) - 17,654 671,163 - - 556,175 - - 440,640 - - 2,120,104 454,044 - 769,131 - - 559,893 38,668 10,190 69,562 492,712 483,271 27,373,486 - 62,591 3,824,701 - - 4,517,155 - - 443,116 - - 2,119,029 - - 34,771 - 59,251 876,404 - 100,398 1,985,669 - 22,589 5,300,903 - - 2,568,097 - - 1,014,685 2,256,152 - 2,256,152 2,256,152 244,829 24,940,682 (1,763,440) 238,442 2,432,804 886,500 - 886,500 - - 129,148 366,132 - 4,476,766 (29,766) (160,853) (4,476,766) 1,222,866 (160,853) 1,015,648 (540,574) 77,589 3,448,452 2,037,582 1,414,901 13,212,674 $ 1,497,008 $ 1,492,490 $ 16,661,126 Non-Major Total Capital Projects 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, 2023 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Change in Fund Balances - Total Governmental Funds $ 3,448,452 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 2,326,284 Depreciation expense (2,697,865) (371,581) 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 (886,500) Principal paid on general obligation bonds 2,340,000 Principal paid on purchase debt 228,097 1,681,597 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 2,377 Compensated absences (154,559) Changes in pension liabilities and related deferred outflows and inflows of resources (1,095,866) Changes in OPEB liabilities and related deferred outflows and inflows of resources (366,746) Amortization of loss on refunding bonds and issuance premium 142,667 (1,472,127) Change in Net Position of Governmental Activities $ 3,286,341 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, 2023 Final Variance with Final Budget REVENUES Real property taxes $ 12,662,993 $ 12,662,993 $ 12,662,904 $ (89) Other tax items 27,001 27,001 33,192 6,191 Non-property taxes 1,983,640 1,983,640 2,465,174 481,534 Departmental income 2,760,123 3,051,895 3,923,791 871,896 Net change in fair value of investments - - (254,838) (254,838) Use of money and property 246,375 465,496 569,876 104,380 Licenses and permits 203,500 223,500 556,175 332,675 Fines and forfeitures 200,000 209,134 440,640 231,506 Sale of property and compensation for loss 22,000 22,420 2,119,039 2,096,619 State aid 216,415 216,415 315,087 98,672 Federal aid - 453,056 559,893 106,837 Miscellaneous - - 20,704 20,704 Total Revenues 18,322,047 19,315,550 23,411,637 4,096,087 EXPENDITURES Current General government support 3,527,207 3,496,372 3,453,108 43,264 Public safety 4,057,766 4,576,425 4,517,155 59,270 Health 458,016 447,571 443,116 4,455 Transportation 2,774,743 2,212,905 2,119,029 93,876 Economic opportunity and development 29,412 34,871 34,771 Culture and recreation 739,394 850,312 817,153 33,159 Home and community services 437,475 1,140,018 1,109,719 30,299 Employee benefits 4,923,347 5,143,086 4,971,498 171,588 Debt service Interest 1,916 1,916 1,916 - Total Expenditures 16,949,276 17,903,476 17,467,465 436,011 Excess of Revenues Over Expenditures 1,372,771 1,412,074 5,944,172 4,532,098 OTHER FINANCING SOURCES (USES) Insurance recoveries - 85,689 129,148 43,459 Transfers in 500,000 500,000 502,363 2,363 Transfers out (2,593,867) (2,818,867) (2,818,867) - Total Other Financing Uses (2,093,867) (2,233,178) (2,187,356) 45,822 Net Change in Fund Balances (721,096) (821,104) 3,756,816 4,577,920 FUND BALANCES Beginning of Year 721,096 821,104 8,924,924 8,103,820 End of Year $ - $ - $ 12,681,740 $ 12,681,740 The notes to the financial statements are an integral part of this statement. General Actual Budget Original Budget Final Variance with Final Budget $ - $ - $ - $ - - - - - - - - - 2,710,904 2,710,904 2,901,168 190,264 - - - - 9,343 17,879 8,536 - - - - - - - - - 1,065 1,065 - - - - - - - - - - - - - 2,711,004 2,721,312 2,920,112 198,800 393,037 325,016 309,002 16,014 - - - - - - - - - - - - - - - - - - - - 755,102 820,514 775,552 44,962 300,297 313,214 306,816 6,398 - - - - 1,448,436 1,458,744 1,391,370 67,374 1,262,568 1,262,568 1,528,742 266,174 - - - - - - - - (1,292,280) (1,292,280) (1,292,280) - (1,292,280) (1,292,280) (1,292,280) - (29,712) (29,712) 236,462 266,174 29,712 29,712 338,603 308,891 $ - $ - $ 575,065 $ 575,065 Water Budget Actual Original Budget Village of Croton-on-Hudson, New York Notes to Financial Statements May 31, 2023 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, 2023 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, 2023 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 and acquisitions under capital leases are reported as other financing sources. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 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, $7,520,525, 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, 2023 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, 2023. 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, 2023 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, 2023, 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, 2023 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 $846,887 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 $2,172,476 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 $189,002 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, 2023 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 the 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 various collective bargaining agreements provide for the payment of accumulated vacation and sick time upon separation from service. The liability for such accumulated time is reflected in the government-wide Statement of Position as current and long- term liabilities. A liability for these amounts is reported in the governmental funds only if the liability has matured through employee resignation or retirement. The liability for compensated absences includes salary related payments, where applicable. 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 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 1 - Summary of Significant Accounting Policies (Continued) 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 does 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 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 1 - Summary of Significant Accounting Policies (Continued) 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 December 1, 2023. 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 2 - Stewardship, Compliance and Accountability (Continued) 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 2022-2023 was $26,135,411 which exceeded the actual levy (inclusive of exclusions) by $13,479,591. 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 2 - Stewardship, Compliance and Accountability (Continued) 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 Village Wide Stormwater $ DPW Vehicles 89,910 IT Server Upgrade 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. E. Cumulative Effect of Change in Accounting Principle The Village implemented the provisions of GASB Statement No. 87, “Leases,” for the year ended May 31, 2023, which established a single model for lease accounting based on the concept that leases are a financing of a “right-to-use” underlying asset. This statement requires a lessor to recognize a cumulative effect of change in accounting principle of $2,376,351 for the lease receivable and $2,376,351 for a deferred inflow of resources for a net cumulative effect of $0 to the June 1, 2022 net position of governmental activities and the General Fund. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 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 $ 487,008 $ - $ 163,608 $ 283,643 $ 39,757 Treasury notes 143,507 143,507 Certificates of deposit 211,940 211,940 - - U.S. and international equities funds 518,939 518,939 - - - $ 1,361,394 $ 874,386 $ 163,608 $ 283,643 $ 39,757 Type of Investment Bond funds $ 487,008 $ - $ 197,221 $ 157,269 $ 39,757 $ 92,761 Treasury notes 143,507 143,507 Certificates of deposit 211,940 211,940 - - - - U.S. and international equities funds 518,939 518,939 - - - - $ 1,361,394 $ 874,386 $ 197,221 $ 157,269 $ 39,757 $ 92,761 Fair 1-5 6-10 Value N/A Years Years Thereafter Value N/A A or better BBB BB B or less Fair 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, 2023 consisted of the following: Property acquired for taxes $ 34,055 Less - Allowance for uncollectible amounts (34,055) $ - C. Leases Receivable The Village has entered into lease agreements which provide for the lessees, of real property. The leases are effective through May 2078. Lease income during 2023 was $203,875 and interest revenue was $39,368. As of May 31, 2023, the leases receivable for the Village was $2,188,703 and the deferred inflows of resources was $2,172,476. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) The following is a summary of the principal and interest requirements to maturity for the Village's lease receivable. Years Ended $ 147,905 $ 58,097 160,051 54,544 152,340 50,758 113,123 47,657 65,328 45,264 2029-2033 331,867 200,023 2034-2038 254,850 157,040 2039-2043 260,216 121,674 2044-2048 300,398 81,492 2049-2053 62,291 53,431 2054-2058 50,076 46,634 2059-2063 57,789 38,921 2064-2068 66,690 30,020 2069-2073 76,962 19,747 2074-2078 88,817 7,893 $ 2,188,703 $ 1,013,195 Interest Principal D. Due From/To Other Funds The balances reflected as due from/to other funds at May 31, 2023 were as follows: Fund General $ 3,379,030 $ 839,506 Water 209,361 1,645,813 Debt Service 92,213 265,791 Capital Projects 581,622 1,848,117 Non-Major Governmental 514,903 177,902 $ 4,777,129 $ 4,777,129 Due Due From To The outstanding balances 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) 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 2,540,545 1,642,336 1,503,373 2,679,508 Total Capital Assets, not being depreciated $ 7,313,556 $ 1,642,336 $ 1,503,373 $ 7,452,519 Capital Assets, being depreciated: Buildings and improvements $ 17,237,558 $ 10,295 $ - $ 17,247,853 Machinery and equipment 14,644,231 655,726 - 15,299,957 Infrastructure 61,656,489 1,521,300 - 63,177,789 Total Capital Assets, being depreciated 93,538,278 2,187,321 - 95,725,599 Less Accumulated Depreciation for: Buildings and improvements 8,335,988 633,891 - 8,969,879 Machinery and equipment 9,857,250 900,027 - 10,757,277 Infrastructure 28,781,621 1,163,947 - 29,945,568 Total Accumulated Depreciation 46,974,859 2,697,865 - 49,672,724 Total Capital Assets, being depreciated, net $ 46,563,419 $ (510,544) $ - $ 46,052,875 Capital Assets, net $ 53,876,975 $ 1,131,792 $ 1,503,373 $ 53,505,394 Balance June 1, May 31, Balance Additions Depreciation expense was charged to the Village’s functions and programs as follows: General Government Support $ 356,938 Public Safety 464,032 Health 68,928 Transportation 1,012,407 Culture and Recreation 262,501 Home and Community Services 533,059 $ 2,697,865 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) F. Accrued Liabilities Accrued liabilities at May 31, 2023 were as follows: Payroll and Employee Benefits $ 647,614 $ 27,879 $ $ 676,209 Fund General Total Fund Water Non-Major Governmental Funds 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 12/14/2017 12/9/2022 - % $ 20,400 $ - $ 20,400 $ - Various 12/14/2018 9/29/2023 3.22 175,086 - 87,545 87,541 Various 12/9/2021 9/29/2023 3.22 165,929 - 33,187 132,742 9/29/2022 9/29/2023 3.22 - 204,220 - 204,220 $ 361,415 $ 204,220 $ 141,132 $ 424,503 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 $1,916 were recorded in the fund financial statements in the General Fund and $10,157 were recorded in the government-wide financial statements for governmental activities. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 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, 2023: General Obligation Bonds Payable $ 31,990,000 $ 886,500 $ 2,340,000 $ 30,536,500 $ 2,431,500 Plus Unamortized premium on bonds 1,743,872 - 171,451 1,572,421 - 33,733,872 886,500 2,511,451 32,108,921 2,431,500 Purchase Debt Payable 470,084 - 228,097 241,987 241,987 Other Non-Current Liabilities: Net Pension Liability-ERS - 3,744,258 - 3,744,258 - Net Pension Liability-PFRS 422,785 3,392,583 - 3,815,368 - Total Pension Liability - Length of service award program 2,525,376 - 580,280 1,945,096 - Compensated Absences 1,900,700 344,559 190,000 2,055,259 206,000 Other Postemployment Benefit Liability 43,133,654 - 5,753,937 37,379,717 - Total Other Non- Current Liabilities 48,452,599 7,481,400 6,752,314 49,181,685 447,987 Total Long-Term Liabilities $ 82,186,471 $ 8,367,900 $ 9,263,765 $ 81,290,606 $ 2,879,487 Due Within One Year New Issues/ Additions and/or Payments May 31, Maturities Balance Balance June 1, 2022 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, 2023 are comprised of the following individual issues: Year of Final Purpose Issue Maturity Refunding Bond $ 3,270,000 November, 2024 2.000 % $ 370,000 Various Purposes 4,360,531 January, 2040 2.500-5.00 3,310,000 Refunding Bond 2,035,000 July, 2026 4.000-5.00 930,000 Various Purposes 8,578,200 April, 2036 3.000 6,090,000 Various Purposes 1,331,780 February, 2032 2.125-3.00 865,000 Various Purposes 1,616,700 December, 2032 2.250-3.00 1,130,000 Various Purposes 640,000 May, 2034 4.000-5.00 510,000 Refunding Bond 4,585,000 May, 2030 5.000 2,975,000 Various Purposes 3,335,400 December, 2036 2.000-2.25 2,825,000 Various Purposes 2,609,990 October, 2038 1.000-2.00 2,350,000 Refunding Bond 8,350,000 April, 2044 2.000-4.00 7,580,000 Various Purposes 740,000 October, 2040 2.000-4.00 715,000 Various Purposes 886,500 October, 2040 4.000-4.50 886,500 $ 30,536,500 Amount Outstanding at May 31, Original Issue Amount Interest Rates Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) Interest expenditures of $987,935 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $839,782 was recorded in the government-wide financial statements for governmental activities. Purchase Debt The Village had entered into a contract to purchase land at a cost of $4,000,000. An initial payment of $500,000 was made at the closing and the balance of $3,500,000 is payable in semi-annual installments of $126,465, including interest at a rate of 6.0% per annum through 2024. The balance due at May 31, 2023 was $241,987. Interest expenditures of $24,834 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $19,702 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, 2023, including interest payments of $6,715,300 are as follows: Year Ending May 31, $ 2,431,500 $ 959,727 $ 241,987 $ 10,943 $ 2,673,487 $ 970,670 2,520,000 855,807 - - 2,520,000 855,807 2,420,000 769,344 - - 2,420,000 769,344 2,525,000 680,869 - - 2,525,000 680,869 2,355,000 596,031 - - 2,355,000 596,031 2029-2033 9,585,000 1,920,178 - - 9,585,000 1,920,178 2034-2038 6,150,000 733,413 - - 6,150,000 733,413 2039-2043 2,265,000 182,575 - - 2,265,000 182,575 285,000 6,413 - - 285,000 6,413 $ 30,536,500 $ 6,704,357 $ 241,987 $ 10,943 $ 30,778,487 $ 6,715,300 General Obligation Interest Total Purchase Debt Principal Principal Interest Principal Interest Bonds The above general obligation bonds and purchase debt 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) 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 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, 2023 are as follows: Tier/Plan Rate ERS 3 A14/41J 13.0% 4 A15/41J 13.0 5 A15/41J 11.1 6 A15/41J 8.2 PFRS 2 384D 29.0% 5 384D* 25.0 5 384D 27.6 6 384D* 20.2 * Indicates employees are required to make contributions for this PFRS tier/plan. At May 31, 2023, the Village reported the following for its proportionate share of the net pension liability for ERS and PFRS: Measurement date Net pension liability $ 3,744,258 $ 3,815,368 Villages' proportion of the net pension liability 0.0174606 % 0.0692385 % Change in proportion since the prior measurement date (0.0004044) % (0.0051896) % March 31, 2023 March 31, 2023 PFRS ERS Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) The net pension liability was measured as of March 31, 2023 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. For the year ended May 31, 2023, the Village recognized its proportionate share of pension expense in the government-wide financial statements of $1,245,375 for ERS and $1,162,504 for PFRS. Pension expenditures of $563,812 for ERS and $802,968 for PFRS were recorded in the fund financial statements and were charged to the following funds: $ 532,895 $ 802,968 Water Fund 30,570 - Sewer Fund - $ 563,812 $ 802,968 ERS PFRS At May 31, 2023, 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 $ 398,793 $ 105,153 $ 372,914 $ - Changes of assumptions 1,818,453 20,097 1,859,219 - Net difference between projected and actual earnings on pension plan investments - 21,997 6,745 - Changes in proportion and differences between Village contributions and proportionate share of contributions 22,164 138,759 83,342 231,757 Village contributions subsequent to the measurement date 106,618 - 144,194 - $ 2,346,028 $ 286,006 $ 2,466,414 $ 231,757 Differences between expected and actual experience $ 771,707 $ 105,153 Changes of assumptions 3,677,672 20,097 Net difference between projected and actual earnings on pension plan investments 6,745 21,997 Changes in proportion and differences between Village contributions and proportionate share of contributions 105,506 370,516 Village contributions subsequent to the measurement date 250,812 - $ 4,812,442 $ 517,763 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, 2023 Note 3 - Detailed Notes on All Funds (Continued) $106,618 and $144,194 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, 2024. 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, $ 438,127 $ 388,159 (248,101) (115,924) 753,878 1,086,766 1,009,500 669,595 - 61,867 $ 1,953,404 $ 2,090,463 ERS PFRS The total pension liability for the March 31, 2023 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, 2023 March 31, 2023 Actuarial valuation date April 1, 2022 April 1, 2022 Investment rate of return 5.9% * 5.9% * Salary scale 4.4% 6.2% 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, 2023 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 32 % 4.30 % International Equity 6.85 Private Equity 7.50 Real Estate 4.60 Opportunistic/ARS Portfolio 5.38 Credit 5.43 Real Assets 5.84 Fixed Income 1.50 Cash - 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) $ 9,048,265 $ 3,744,258 $ (687,857) Village's proportionate share of the PFRS net pension liability (asset) $ 7,953,314 $ 3,815,368 $ 388,901 (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, 2023 Note 3 - Detailed Notes on All Funds (Continued) The components of the collective net pension liability as of the March 31, 2023 measurement date were as follows: Total pension liability $ 232,627,259,000 $ 43,835,333,000 $ 276,462,592,000 Fiduciary net position 211,183,223,000 38,324,863,000 249,508,086,000 Employers' net pension liability (asset) $ 21,444,036,000 $ 5,510,470,000 $ 26,954,506,000 Fiduciary net position as a percentage of total pension liability 90.78% 87.43% 90.25% 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, 2023 represent the employer contribution for the period of April 1, 2023 through May 31, 2023 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, 2023 were $106,618 and $144,194, 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, 2023. 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, 2022, 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, 2023 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 the 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, 2022 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 at the December 31, 2022 measurement date was determined using an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability in the December 31, 2022 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 4.31%. This was the yield to maturity of the S&P Municipal Bond 20 Year High Grade Rate Index as of December 31, 2022. 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, 2023 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 12/31/2021 measurement date 2,525,376 $ Service Cost 116,408 Interest 58,037 Changes of assumptions or other inputs (681,279) Differences between expected and actual experience 28,266 Benefit Payments (101,712) Balance as of 12/31/2022 measurement date 1,945,096 $ 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, 2022 measurement date, calculated using the discount rate of 4.31 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 (3.31 percent) or 1-percentage point higher (5.31 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (3.31%) (4.31%) (5.31%) Total Pension Liability 2,234,490 $ 1,945,096 $ 1,711,316 $ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2022, the Village recognized pension expense of $171,083 in the governmental activities and $116,316 in the Fire Service Award Program – sub-fund. At December 31, 2022, 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 86,048 $ 11,030 $ Changes of assumptions or other inputs 458,053 783,219 Benefit payments & administrative expenses subsequent to the measurement date 35,567 - 579,668 $ 794,249 $ $35,567 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, 2024. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 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 , (15,419) $ (15,419) (15,419) (15,419) (24,908) Thereafter (163,564) (250,148) $ 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, 2023, 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 $37,379,717 was measured as of May 31, 2023, and was determined by an actuarial valuation as of June 1, 2022. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) The total OPEB liability in the June 1, 2022 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 4.24% Healthcare cost trend rates 8.0% for 2023, decreasing by up to 1.0% per year to an ultimate rate of 5.0% 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 RP 2010 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, 2023 is as follows: Total OPEB Liability - Beginning of Year $ 43,133,654 Service Cost 1,179,273 Interest 1,568,710 Difference between expected and actual experience (3,452,316) Change in assumptions or other inputs (3,577,410) Benefit payments (1,472,194) Total OPEB Liability - End of Year $ 37,379,717 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 (3.24%) or 1 percentage point higher (5.24%) than the current discount rate: Total OPEB Liability $ 43,192,521 $ 37,379,717 $ 32,684,826 1% Current 1% Decrease Discount Rate Increase (3.24%) (4.24%) (5.24%) 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 (7.0% decreasing to 4.0%) or 1 percentage point higher (9.0% decreasing to 6.0%) than the current healthcare cost trend rates: Current Healthcare (8.0% decreasing Total OPEB Liability $ 32,292,658 $ 37,379,717 $ 43,837,020 1% Cost Trend 1% Decrease Rates Increase to 4.0%) to 5.0%) to 6.0%) (7.0% decreasing (9.0% decreasing Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) For the year ended May 31, 2023, the Village recognized OPEB expense of $1,838,940 in the government-wide financial statements. At May 31, 2023, 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 $ 8,414,217 $ 15,531,020 Differences between expected and actual experience 3,776,779 3,902,490 $ 12,190,996 $ 19,433,510 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 March 31, $ (909,043) (909,043) (909,043) (1,071,246) (1,595,580) Thereafter (1,848,559) $ (7,242,514) 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: Transfers Out General Fund $ - $ 2,452,735 $ 366,132 $ 2,818,867 Water Fund 275,000 1,017,280 - 1,292,280 Debt Service Fund 175,000 - - 175,000 Capital Projects Fund 2,363 27,403 - 29,766 Non-Major Governmental Funds 50,000 110,853 - 160,853 $ 502,363 $ 3,608,271 $ 366,132 $ 4,476,766 Fund Transfers In Fund Debt Projects Service Capital General Fund Total Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) 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 the 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, 2023 Note 3 - Detailed Notes on All Funds (Continued) K. Fund Balances Nonspendable: Leases $ 16,227 $ - $ - $ - $ - $ 16,227 $ - $ - $ - $ - $ - $ - Prepaid expenditures 3,819 - - - - 3,819 - - - - - - Total Restricted 20,046 - - - - 20,046 - - - - - - Restricted: Employee benefits 656,928 6,865 - - - 663,793 453,086 6,665 - - - 459,751 Pension benefit 1,390,652 - - - - 1,390,652 1,577,006 - - - - 1,577,006 Tax stabilization 100,000 - - - - 100,000 - - - - - - Debt service - - 114,823 - - 114,823 - - 321,664 - - 321,664 Debt service - for subsequent year's expenditures - - 300,000 - - 300,000 - - 175,000 - - 175,000 Capital projects - - - 1,497,008 - 1,497,008 - - - 2,037,582 - 2,037,582 Parklands - - - - 735,004 735,004 - - - - 766,411 766,411 Trusts - - - - - - - - Total Restricted 2,147,580 6,865 414,823 1,497,008 735,079 4,801,355 2,030,092 6,665 496,664 2,037,582 766,486 5,337,489 Assigned: Purchases on order: General government support 27,292 - - 28,090 39,190 1,349 - - - 40,539 Public safety 102,815 - - - - 102,815 151,930 - - - - 151,930 Health 5,126 - - - - 5,126 12,497 - - - - 12,497 Transportation 11,982 - - - - 11,982 47,659 - - - - 47,659 Economic opportunity and development - - - - - - 2,589 - - - - 2,589 Culture and recreation 8,524 - - - - 8,524 18,931 - - - - 18,931 Home and community services 17,756 32,468 - - 3,844 54,068 48,300 28,363 - - 76,958 173,495 33,084 - - 4,026 210,605 321,096 29,712 - - 351,103 Subsequent year's expenditures 725,000 - - - - 725,000 400,000 - - - - 400,000 Future retirement expenditures 311,376 - - - - 311,376 311,376 - - - - 311,376 Contractual obligations 252,931 - - - - 252,931 - - - - - - Water Fund - 535,116 - - - 535,116 - 302,226 - - - 302,226 Sewer Fund - - - - 753,385 753,385 - - - - 648,120 648,120 Total Assigned 1,462,802 568,200 - - 757,411 2,788,413 1,032,472 331,938 - - 648,415 2,012,825 Unassigned 9,051,312 - - - - 9,051,312 5,862,360 - - - - 5,862,360 Total Fund Balances (Deficits) $ 12,681,740 $ 575,065 $ 414,823 $ 1,497,008 $ 1,492,490 $ 16,661,126 $ 8,924,924 $ 338,603 $ 496,664 $ 2,037,582 $ 1,414,901 $ 13,212,674 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 3 - Detailed Notes on All Funds (Continued) 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. 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, 2023, 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. 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2023 Note 4 - Summary Disclosure of Significant Contingencies (Continued) 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. Note 5 - Subsequent Events The Village, on September 28, 2023 issued serial bonds in the amount of $2,269,620. The bond proceeds will be used for various capital expenditures. The bonds mature annually through September 2043, with interest at rates from 3.0% to 4.0% The Village on September 28, 2023 issued a $773,106 bond anticipation note. The proceeds of the note along with $173,972 in available funds will be used to redeem $424,503 of outstanding bond anticipation notes and provide $522,575 in new money for various capital expenditures. The note is due on September 27, 2024 with interest at 4.5%. Note 6 - Recently Issued GASB Pronouncements GASB Statement No. 96, “Subscription-Based Information Technology Arrangements” provides guidance on the accounting and financial reporting for subscription-based information technology arrangements (“SBITAs”) for government end users. This Statement defines a SBITA and establishes that a SBITA results in a right-to-use subscription asset (intangible asset) and a corresponding liability. The Statement also provides the capitalization criteria for outlays other than subscription payments, including implementation costs of a SBITA, as well as detailing the requirements for note disclosures regarding a SBITA. The requirements of this Statement are effective for reporting periods beginning after June 15, 2022.   Village of Croton-on-Hudson, New York Notes to Financial Statements (Concluded) May 31, 2023 Note 6 - Recently Issued GASB Pronouncements (Continued) GASB Statement No. 101, “Compensated Absences”, provides guidance on the accounting and financial reporting for compensated absences. The objective of this Statement is to better meet the information needs of financial statement users by updating the recognition and measurement guidance for compensated absences. That objective is achieved by aligning recognition and measurement guidance under a unified model and by amending certain previously required disclosures. The requirements of this Statement are effective for reporting periods beginning after December 15, 2023. 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 $ 1,179,273 $ 1,766,027 $ 940,629 $ 762,647 $ 736,786 Interest 1,568,710 889,610 1,151,200 1,366,788 1,396,140 Changes of benefit terms - - - - - Differences between expected and actual experience (3,452,316) 1,944,641 3,709,278 (2,051,120) - Changes of assumptions or other inputs (3,577,410) (16,733,127) 7,687,580 5,900,868 1,685,609 Benefit payments (1,472,194) (1,367,571) (1,252,949) (1,041,371) (1,102,051) Net Change in Total OPEB Liability (5,753,937) (13,500,420) 12,235,738 4,937,812 2,716,484 Total OPEB Liability – Beginning of Year 43,133,654 56,634,074 44,398,336 39,460,524 36,744,040 (3) Total OPEB Liability – End of Year $ 37,379,717 $ 43,133,654 $ 56,634,074 $ 44,398,336 $ 39,460,524 Village's covered-employee payroll $ 7,177,398 $ 6,935,501 $ 7,179,336 $ 8,820,034 $ 8,820,000 Total OPEB liability as a percentage of covered-employee payroll 521% 622% 789% 503% 447% *Discount Rate 4.24% 3.70% 1.59% 2.63% 3.51% Notes to Schedule: Village of Croton-on-Hudson, New York (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 ". Required Supplementary Information - Schedule of Changes in the Village's Total OPEB Liability and Related Ratios Last Ten Fiscal Years (1) (2) (2) No assets are accumulated in a trust that meets the criteria in paragraph 4 of this Statement to pay related benefits. (3) Restated for the implementation of the provisions of GASB Statement No. 75. See independent auditors' report. Village's proportion of the net pension liability (asset) 0.0174606% 0.0178650% 0.0177371% 0.0197402% 0.0196808% 0.0206840% 0.0205204% 0.0200875% Village's proportionate share of the net pension liability (asset) $ 3,744,258 $ (1,460,394) $ 17,662 $ 5,227,312 $ 1,394,445 $ 667,565 $ 1,928,144 $ 3,224,099 Village's covered payroll $ 4,619,584 $ 4,783,933 $ 4,826,651 $ 4,992,669 $ 5,173,650 $ 5,100,191 $ 5,117,569 $ 4,878,324 Village's proportionate share of the net pension liability (asset) as a percentage of its covered payroll -(81.05%) (30.53%) 0.37% 104.70% 26.95% 13.09% 37.68% 66.09% Plan fiduciary net position as a percentage of the total pension liability 90.78% 103.65% 99.95% 86.39% 96.27% 98.24% 94.70% 97.90% Discount Rate 5.90% 5.90% 5.90% 6.80% 7.00% 7.00% 7.00% 7.00% Contractually required contribution $ 551,631 $ 789,905 $ 755,833 $ 754,473 $ 757,401 $ 773,967 $ 742,631 $ 851,684 Contributions in relation to the contractually required contribution (551,631) (789,905) (755,833) (754,473) (757,401) (773,967) (742,631) (851,684) Contribution excess $ - $ - $ - $ - $ - $ - $ - $ - Village's covered payroll $ 4,686,425 $ 4,738,948 $ 4,923,858 $ 4,918,388 $ 5,106,990 $ 5,168,567 $ 4,981,026 $ 4,810,512 Contributions as a percentage of covered payroll 11.77% 16.67% 15.35% 15.34% 14.83% 14.97% 14.91% 17.70% (1) Data not available prior to fiscal year 2016 implementation of Government Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions". (2) The amounts presented for each fiscal year were determined as of the March 31, measurement date within the current fiscal year. (3) 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. Village of Croton-on-Hudson, New York Required Supplementary Information New York State and Local Employees' Retirement System Last Ten Fiscal Years (1) 2020 (3) 2022 (4) (4) 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. Schedule of Contributions Schedule of the Village's Proportionate Share of the Net Pension Liability (Asset) (2) 2021 (4) 2023 (3) See independent auditors' report. Village's proportion of the net pension liability 0.0692385% 0.0744281% 0.0784524% 0.0814350% 0.0708670% 0.0777509% 0.0758163% 0.0798780% Village's proportionate share of the net pension liability $ 3,815,368 $ 422,785 $ 1,362,150 $ 4,352,650 $ 1,188,485 $ 785,873 $ 1,571,408 $ 2,365,019 Village's covered payroll $ 3,446,277 $ 2,956,251 $ 2,801,190 $ 3,007,375 $ 2,849,777 $ 2,791,364 $ 2,923,361 $ 2,860,350 Village's proportionate share of the net pension liability as a percentage of its covered payroll 110.71% 14.30% 48.63% 144.73% 41.70% 28.15% 53.75% 82.68% Plan fiduciary net position as a percentage of the total pension liability 87.43% 98.66% 95.79% 84.86% 95.09% 96.93% 93.50% 90.20% Discount rate 5.90% 5.90% 5.90% 6.80% 7.00% 7.00% 7.00% 7.00% Contractually required contribution $ 787,007 $ 784,725 $ 716,842 $ 661,366 $ 649,105 $ 703,784 $ 675,384 $ 627,862 Contributions in relation to the contractually required contribution (787,007) (784,725) (716,842) (661,366) (649,105) (703,784) (675,384) (627,862) Contribution excess $ - $ - $ - $ - $ - $ - $ - $ - Village's covered payroll $ 3,582,757 $ 2,985,672 $ 2,800,430 $ 2,946,420 $ 2,904,160 $ 2,777,635 $ 2,826,988 $ 2,827,318 Contributions as a percentage of covered payroll 21.97% 26.28% 25.60% 22.45% 22.35% 25.34% 23.89% 22.21% (1) Data not available prior to fiscal year 2016 implementation of Government Accounting Standards Board Statement No. 68, "Accounting and Financial Reporting for Pensions". (2)The amounts presented for each fiscal year were determined as of the March 31, measurement date withing the current fiscal year. (3) 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. Village of Croton-on-Hudson, New York Required Supplementary Information New York State and Local Police and Fire Retirement System Last Ten Fiscal Years (1) 2020 (3) 2022 (4) (4) 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. Schedule of Contributions Schedule of the Village's Proportionate Share of the Net Pension Liability (2) 2021 (4) 2023 (3) See independent auditors' report. Total Pension Liability Service Cost 116,408 $ 119,225 $ 73,174 $ 67,846 $ 79,926 $ 71,769 $ Interest 58,037 50,586 65,473 67,746 60,698 61,926 Changes of assumptions or other inputs (681,279) (126,546) 467,429 105,130 (132,769) 146,667 Differences between expected and actual experience 28,266 19,896 47,825 (19,050) 5,233 17,665 Benefit payments (101,712) (79,188) (95,422) (64,100) (57,280) (51,740) Net Change in total pension liability (580,280) (16,027) 558,479 157,572 (44,192) 246,287 Total pension liability – beginning 2,525,376 2,541,403 1,982,924 1,825,352 1,869,544 1,623,257 Total pension liability – ending 1,945,096 $ 2,525,376 $ 2,541,403 $ 1,982,924 $ 1,825,352 $ 1,869,544 $ Covered payroll N/A N/A 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 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 4.31% 2.24% 1.93% 3.26% 3.64% 3.16% 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. (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 See independent auditors' report. Village of Croton-on-Hudson, New York General Fund Combining Balance Sheet - Sub-Funds May 31, 2023 (With Comparative Actuals for 2022) ASSETS Cash and equivalents $ 3,190,831 $ 28,678 $ 3,219,509 $ 6,314,877 Investments 6,697,374 1,361,394 8,058,768 2,536,992 Taxes receivable Property acquired for taxes 34,055 - 34,055 33,966 Allowance for uncollectible taxes (34,055) - (34,055) (33,966) - - - - - Other receivables Accounts 119,556 120,136 79,231 State and Federal aid 294,926 - 294,926 249,664 Due from other governments 474,604 - 474,604 453,388 Leases 2,188,703 - 2,188,703 - Due from other funds 3,379,030 - 3,379,030 1,137,759 6,456,819 6,457,399 1,920,042 Prepaid expenditures 3,819 - 3,819 - Total Assets $ 16,348,843 $ 1,390,652 $ 17,739,495 $ 10,771,911 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 241,021 $ - $ 241,021 $ 204,174 Accrued liabilities 647,614 - 647,614 507,871 Deposits payable 295,145 - 295,145 522,829 Employee payroll deductions 15,106 - 15,106 12,516 Due to other funds 839,506 - 839,506 117,379 Due to other governments - - - 33,792 Unearned revenues 846,887 - 846,887 448,426 Total Liabilities 2,885,279 - 2,885,279 1,846,987 Deferred inflows of resources Leases 2,172,476 - 2,172,476 - Total Liabilities and Deferred Inflows of Resources 5,057,755 - 5,057,755 1,846,987 Fund balances Nonspendable 20,046 - 20,046 - Restricted 756,928 1,390,652 2,147,580 2,030,092 Assigned 1,462,802 - 1,462,802 1,032,472 Unassigned 9,051,312 - 9,051,312 5,862,360 Total Fund Balances 11,291,088 1,390,652 12,681,740 8,924,924 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 16,348,843 $ 1,390,652 $ 17,739,495 10,771,911 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, 2023 (With Comparative Actuals for 2022) REVENUES Real property taxes $ 12,662,904 $ - $ - $ 12,662,904 $ 12,347,525 Other tax items 33,192 - - 33,192 33,870 Non-property taxes 2,465,174 - - 2,465,174 2,264,667 Departmental income 3,923,791 123,671 (123,671) 3,923,791 2,958,157 Net change in fair value of investments - (254,838) - (254,838) 52,409 Use of money and property 525,371 44,505 - 569,876 268,033 Licenses and permits 556,175 - - 556,175 261,103 Fines and forfeitures 440,640 - - 440,640 235,529 Sale of property and compensation for loss 2,119,039 - - 2,119,039 73,128 State aid 315,087 - - 315,087 312,227 Federal aid 559,893 - - 559,893 714,617 Miscellaneous 20,704 - - 20,704 75,211 Total Revenues 23,621,970 (86,662) (123,671) 23,411,637 19,596,476 EXPENDITURES Current General government support 3,453,108 - - 3,453,108 3,490,343 Public safety 4,417,463 99,692 - 4,517,155 4,037,275 Health 443,116 - - 443,116 616,548 Transportation 2,119,029 - - 2,119,029 2,015,511 Economic opportunity and development 34,771 - - 34,771 27,633 Culture and recreation 817,153 - - 817,153 651,261 Home and community services 1,109,719 - - 1,109,719 889,443 Employee benefits 5,095,169 - (123,671) 4,971,498 4,726,217 Debt Service Interest 1,916 - - 1,916 2,406 Total Expenditures 17,491,444 99,692 (123,671) 17,467,465 16,456,637 Excess (Deficiency) of Revenues Over Expenditures 6,130,526 (186,354) - 5,944,172 3,139,839 OTHER FINANCING SOURCES (USES) Insurance recoveries 129,148 - - 129,148 38,963 Transfers in 502,363 - - 502,363 467,354 Transfers out (2,818,867) - - (2,818,867) (2,651,070) Total Other Financing Uses (2,187,356) - - (2,187,356) (2,144,753) Net Change in Fund Balances 3,943,170 (186,354) - 3,756,816 995,086 FUND BALANCES Beginning of Year 7,347,918 1,577,006 - 8,924,924 7,929,838 End of Year $ 11,291,088 $ 1,390,652 $ - $ 12,681,740 $ 8,924,924 Fire Totals Service Award General Program Eliminations See independent auditors' report. Village of Croton-on-Hudson, New York General Fund Comparative Balance Sheet - Sub-Fund May 31, ASSETS Cash and equivalents $ 3,190,831 $ 6,276,907 Investments 6,697,374 1,000,556 Taxes receivable Property acquired for taxes 34,055 33,966 Allowance for uncollectible taxes (34,055) (33,966) - - Other receivables Accounts 119,556 76,631 State and Federal aid 294,926 249,664 Due from other governments 474,604 453,388 Leases 2,188,703 - Due from other funds 3,379,030 1,137,759 6,456,819 1,917,442 Prepaid expenditures 3,819 - Total Assets $ 16,348,843 $ 9,194,905 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 241,021 $ 204,174 Accrued liabilities 647,614 507,871 Deposits payable 295,145 522,829 Employee payroll deductions 15,106 12,516 Due to other funds 839,506 117,379 Due to other governments - 33,792 Unearned revenues 846,887 448,426 Total Liabilities 2,885,279 1,846,987 Deferred inflows of resources Leases 2,172,476 - Total Liabilities and Deferred Inflows of Resources 5,057,755 1,846,987 Fund balance Nonspendable 20,046 - Restricted 756,928 453,086 Assigned 1,462,802 1,032,472 Unassigned 9,051,312 5,862,360 Total Fund Balance 11,291,088 7,347,918 Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 16,348,843 $ 9,194,905 See independent auditors' report. 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 $ 12,662,993 $ 12,662,993 $ 12,662,904 $ (89) Other tax items 27,001 27,001 33,192 6,191 Non-property taxes 1,983,640 1,983,640 2,465,174 481,534 Departmental income 2,760,123 3,051,895 3,923,791 871,896 Use of money and property 246,375 465,496 525,371 59,875 Licenses and permits 203,500 223,500 556,175 332,675 Fines and forfeitures 200,000 209,134 440,640 231,506 Sale of property and compensation for loss 22,000 22,420 2,119,039 2,096,619 State aid 216,415 216,415 315,087 98,672 Federal aid - 453,056 559,893 106,837 Miscellaneous - - 20,704 20,704 Total Revenues 18,322,047 19,315,550 23,621,970 4,306,420 EXPENDITURES Current General government support 3,527,207 3,496,372 3,453,108 43,264 Public safety 4,057,766 4,576,425 4,417,463 158,962 Health 458,016 447,571 443,116 4,455 Transportation 2,774,743 2,212,905 2,119,029 93,876 Economic opportunity and development 29,412 34,871 34,771 Culture and recreation 739,394 850,312 817,153 33,159 Home and community services 437,475 1,140,018 1,109,719 30,299 Employee benefits 4,923,347 5,143,086 5,095,169 47,917 Debt service Interest 1,916 1,916 1,916 - Total Expenditures 16,949,276 17,903,476 17,491,444 412,032 Excess of Revenues Over Expenditures 1,372,771 1,412,074 6,130,526 4,718,452 OTHER FINANCING SOURCES (USES) Insurance recoveries - 85,689 129,148 43,459 Transfers in 500,000 500,000 502,363 2,363 Transfers out (2,593,867) (2,818,867) (2,818,867) - Total Other Financing Uses (2,093,867) (2,233,178) (2,187,356) 45,822 Net Change in Fund Balance (721,096) (821,104) 3,943,170 4,764,274 FUND BALANCE Beginning of Year 721,096 821,104 7,347,918 6,526,814 End of Year $ - $ - $ 11,291,088 $ 11,291,088 See independent auditors' report. Original Final Variance with Budget Budget Actual Final Budget $ 12,349,532 $ 12,349,532 $ 12,347,525 $ (2,007) 25,001 25,001 33,870 8,869 1,692,000 1,692,000 2,264,667 572,667 2,026,291 2,221,879 2,958,157 736,278 186,815 186,815 239,677 52,862 178,000 178,000 261,103 83,103 170,000 176,020 235,529 59,509 20,000 20,000 73,128 53,128 171,068 172,591 357,574 184,983 - 413,439 714,617 301,178 45,347 45,347 29,864 (15,483) 16,864,054 17,480,624 19,515,711 2,035,087 3,517,732 3,522,857 3,490,343 32,514 3,879,707 4,156,912 3,958,987 197,925 431,538 631,270 616,548 14,722 2,762,994 2,145,292 2,015,511 129,781 32,552 32,552 27,633 4,919 669,946 685,076 651,261 33,815 430,702 970,418 889,443 80,975 4,728,328 4,928,450 4,833,973 94,477 2,406 2,406 2,406 - 16,455,905 17,075,233 16,486,105 589,128 408,149 405,391 3,029,606 2,624,215 - 29,959 38,963 9,004 375,000 375,550 467,354 91,804 (2,674,836) (2,694,319) (2,651,070) 43,249 (2,299,836) (2,288,810) (2,144,753) 144,057 (1,891,687) (1,883,419) 884,853 2,768,272 1,891,687 1,883,419 6,463,065 4,579,646 $ - $ - $ 7,347,918 $ 7,347,918 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, 2023 (With Comparative Actuals for 2022) Original Final Variance with Budget Budget Actual Final Budget Actual REAL PROPERTY TAXES $ 12,662,993 $ 12,662,993 $ 12,662,904 $ (89) $ 12,347,525 OTHER TAX ITEMS Interest and penalties on real property taxes 27,001 27,001 33,192 6,191 33,870 NON-PROPERTY TAXES Non-property tax distribution from County 1,750,000 1,750,000 2,166,744 416,744 2,032,607 Franchise fees 120,000 120,000 122,582 2,582 126,286 Utilities gross receipts taxes 112,000 112,000 174,208 62,208 105,774 Emergency Tenant Protection Act 1,640 1,640 1,640 - - 1,983,640 1,983,640 2,465,174 481,534 2,264,667 DEPARTMENTAL INCOME Charges for Tax Redemption - - - Clerk fees - - 4,926 4,926 - Garbage removal 71,760 71,760 75,585 3,825 58,340 Parks and recreation charges 250,000 250,000 315,576 65,576 229,306 Ambulance service 316,043 316,043 429,292 113,249 393,926 Planning Board fees 5,500 5,500 8,475 2,975 8,750 Zoning fees 5,500 5,500 6,300 7,500 Fire protection services for other governments 276,310 276,310 276,310 - 282,369 Parking permits 1,810,000 1,835,000 2,506,711 671,711 1,830,905 Other 25,010 291,782 300,538 8,756 147,061 2,760,123 3,051,895 3,923,791 871,896 2,958,157 USE OF MONEY AND PROPERTY Earnings on investments 2,000 221,121 284,769 63,648 2,415 Rental of real property 244,375 244,375 240,602 (3,773) 237,262 246,375 465,496 525,371 59,875 239,677 LICENSES AND PERMITS Business and occupational licenses 10,000 10,000 12,100 2,100 12,690 Building permits 110,000 110,000 412,547 302,547 149,654 Dog license apportionment 5,500 5,500 7,785 2,285 6,903 Permit fees 78,000 98,000 123,743 25,743 91,856 203,500 223,500 556,175 332,675 261,103 FINES AND FORFEITURES Fines and forfeited bail 200,000 209,134 440,640 231,506 235,529 SALE OF PROPERTY AND COMPENSATION FOR LOSS Sale of equipment 4,000 4,000 2,052,442 2,048,442 54,671 Minor sales 18,000 18,420 16,611 (1,809) 18,457 Other - - 49,986 49,986 - . 22,000 22,420 2,119,039 2,096,619 73,128 STATE AID Aid and incentives for municipalities 45,347 45,347 45,347 - 45,347 Mortgage tax 140,000 140,000 161,050 21,050 244,186 Snow and ice reimbursement 31,068 31,068 24,475 (6,593) 24,475 Emergency disaster - - 73,731 73,731 23,228 Other - - 10,484 10,484 20,338 216,415 216,415 315,087 98,672 357,574 (Continued) Village of Croton-on-Hudson, New York General Fund - Sub-Fund Schedule of Revenues Compared to Budget (Continued) Year Ended May 31, 2023 (With Comparative Actuals for 2022) Original Final Budget Budget Actual Final Budget Actual FEDERAL AID American Rescue Plan Act $ - $ 415,127 $ 415,127 $ - $ 415,127 Emergency management assistance - 37,929 144,766 106,837 299,490 - 453,056 559,893 106,837 714,617 MISCELLANEOUS Refund of prior year's expenditures - - 1,424 1,424 22,063 Gifts and donations - - 19,280 19,280 7,801 - - 20,704 20,704 29,864 TOTAL REVENUES 18,322,047 19,315,550 23,621,970 4,306,420 19,515,711 OTHER FINANCING SOURCES Insurance recoveries - 85,689 129,148 43,459 38,963 Transfers in Water Fund 275,000 275,000 275,000 - 275,000 Capital Projects Fund - - 2,363 2,363 92,354 Sewer Fund 50,000 50,000 50,000 - - Debt Service Fund 175,000 175,000 175,000 - 100,000 TOTAL OTHER FINANCING SOURCES 500,000 585,689 631,511 45,822 506,317 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 18,822,047 $ 19,901,239 $ 24,253,481 $ 4,352,242 $ 20,022,028 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, 2023 (With Comparative Actuals for 2022) Original Final Variance with Budget Budget Actual Final Budget Actual GENERAL GOVERNMENT SUPPORT Board of Trustees $ 26,690 $ 27,094 $ 26,401 $ $ 24,679 Justice 249,701 251,603 251,569 253,459 Mayor 6,400 6,523 6,358 6,006 Clerk - Treasurer 399,602 395,062 392,250 2,812 444,895 Assessment 25,775 23,043 23,043 - 19,628 Manager 222,897 236,308 236,308 - 347,768 Data processing 148,234 154,422 151,860 2,562 157,562 Law 157,172 157,762 157,672 146,609 Engineer 540,779 534,880 532,291 2,589 545,303 Operation of plant and buildings 113,515 287,340 274,563 12,777 228,689 Auditor 33,041 35,046 35,046 - 58,361 Central garage 613,869 672,263 669,705 2,558 471,436 Central communications 293,674 291,501 272,517 18,984 268,943 Unallocated insurance 353,539 356,515 356,515 - 359,004 Municipal association dues 8,582 8,607 8,607 - 11,082 Refunds of real property taxes 30,000 3,687 3,687 - 93,804 Taxes and assessments on property 25,434 24,586 24,586 - 24,865 Tax advertising - - Metropolitan transportation authority commuter mobility tax 27,503 29,314 29,314 - 28,250 Contingent account 250,000 - - - - 3,527,207 3,496,372 3,453,108 43,264 3,490,343 PUBLIC SAFETY Police 3,489,278 3,936,815 3,842,365 94,450 3,521,044 Fire Department 530,488 589,163 526,474 62,689 418,339 Control of animals 5,500 6,823 5,000 1,823 4,713 Traffic control 32,500 43,624 43,624 - 14,891 4,057,766 4,576,425 4,417,463 158,962 3,958,987 HEALTH Registrar of Vital Statistics 5,300 4,350 4,314 4,910 Public health - - (6) Ambulance 452,716 443,215 438,796 4,419 611,644 458,016 447,571 443,116 4,455 616,548 TRANSPORTATION Street maintenance and administration 2,269,566 1,621,545 1,560,520 61,025 1,476,404 Snow removal 199,281 196,735 170,995 25,740 244,497 Street lighting 9,671 28,667 28,650 6,379 Off-street parking 275,025 328,935 321,958 6,977 251,119 Brush and weeds 21,200 37,023 36,906 37,112 2,774,743 2,212,905 2,119,029 93,876 2,015,511 ECONOMIC OPPORTUNITY AND DEVELOPMENT Publicity 29,412 34,871 34,771 27,633 CULTURE AND RECREATION Parks, playgrounds and recreation 532,459 618,887 603,541 15,346 515,763 Youth programs 119,557 118,541 101,537 17,004 80,569 Historian 2,000 - - - - Celebrations 39,340 67,353 67,025 15,610 Community center - - - - Senior citizens programs 46,038 45,531 45,050 39,062 739,394 850,312 817,153 33,159 651,261 (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, 2023 (With Comparative Actuals for 2022) Original Final Variance with Budget Budget Actual Final Budget Actual HOME AND COMMUNITY SERVICES Zoning $ 3,925 $ 3,367 $ 2,942 $ $ 2,475 Planning 13,750 9,175 7,848 1,327 9,266 Recycling program 172,558 454,310 453,766 409,580 Sanitary and storm sewers 23,530 39,909 33,259 6,650 24,585 Refuse and garbage 145,082 352,386 337,845 14,541 328,365 Street cleaning 2,000 19,824 19,822 15,472 Shade trees 46,479 92,160 86,557 5,603 81,296 Conservation - 2,126 2,126 - - Community beautification 24,150 27,386 27,005 13,569 Other 6,001 139,375 138,549 4,835 437,475 1,140,018 1,109,719 30,299 889,443 EMPLOYEE BENEFITS State retirement 580,178 554,186 532,895 21,291 677,715 State retirement - Police and Fire 770,000 829,505 802,968 26,537 758,798 Service award program 123,671 223,671 223,671 - 107,756 Social security 479,548 495,486 495,486 - 476,592 Workers' compensation benefits 232,664 214,938 214,938 - 253,683 Life insurance 8,443 8,443 8,354 8,027 Health insurance 2,380,226 2,467,209 2,467,209 - 2,216,373 Dental insurance 99,150 97,776 97,776 - 98,260 Medicare reimbursement 245,467 251,872 251,872 - 236,769 Unemployment benefits 4,000 - - - - 4,923,347 5,143,086 5,095,169 47,917 4,833,973 DEBT SERVICE Interest Bond anticipation notes 1,916 1,916 1,916 - 2,406 TOTAL EXPENDITURES 16,949,276 17,903,476 17,491,444 412,032 16,486,105 OTHER FINANCING USES Transfers out Capital Projects Fund 141,132 366,132 366,132 - 153,222 Debt Service Fund 2,452,735 2,452,735 2,452,735 - 2,497,848 TOTAL OTHER FINANCING USES 2,593,867 2,818,867 2,818,867 - 2,651,070 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 19,543,143 $ 20,722,343 $ 20,310,311 $ 412,032 $ 19,137,175 See independent auditors' report. Village of Croton-on-Hudson, New York Water Fund Comparative Balance Sheet May 31, Cash and equivalents $ 944,731 $ 596,788 Investments 307,115 - Receivables Water rents 813,717 709,456 Due from other funds 209,361 76,879 1,023,078 786,335 Total Assets $ 2,274,924 $ 1,383,123 Liabilities Accounts payable $ 26,167 $ 29,068 Accrued liabilities 27,879 25,001 Due to other funds 1,645,813 990,451 Total Liabilities 1,699,859 1,044,520 Fund balance Restricted 6,865 6,665 Assigned 568,200 331,938 Total Fund Balance 575,065 338,603 Total Liabilities and Fund Balance $ 2,274,924 $ 1,383,123 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 $ 2,710,904 $ 2,710,904 $ 2,901,168 $ 190,264 Use of money and property 9,343 17,879 8,536 Sale of property and compensation for loss - 1,065 1,065 - Total Revenues 2,711,004 2,721,312 2,920,112 198,800 EXPENDITURES Current General government support 393,037 325,016 309,002 16,014 Home and community services 755,102 820,514 775,552 44,962 Employee benefits 300,297 313,214 306,816 6,398 Total Expenditures 1,448,436 1,458,744 1,391,370 67,374 Excess of Revenues Over Expenditures 1,262,568 1,262,568 1,528,742 266,174 OTHER FINANCING USES Transfers out (1,292,280) (1,292,280) (1,292,280) - Net Change in Fund Balance (29,712) (29,712) 236,462 266,174 FUND BALANCE Beginning of Year 29,712 29,712 338,603 308,891 End of Year $ - $ - $ 575,065 $ 575,065 See independent auditors' report. Budget Budget Actual Original Final Variance with Final Budget $ 2,709,705 $ 2,709,705 $ 2,719,269 $ 9,564 - 2,678 2,678 - 2,709,805 2,712,483 2,722,169 9,686 374,585 349,834 301,075 48,759 763,190 786,804 724,108 62,696 298,249 336,349 307,513 28,836 1,436,024 1,472,987 1,332,696 140,291 1,273,781 1,239,496 1,389,473 149,977 (1,324,409) (1,290,073) (1,290,073) - (50,628) (50,577) 99,400 149,977 50,628 50,577 239,203 188,626 $ - $ - $ 338,603 $ 338,603 Budget Actual Budget Village of Croton-on-Hudson, New York Water Fund Schedule of Revenues Compared to Budget Year Ended May 31, 2023 (With Comparative Actuals for 2022) Original Final Variance with Budget Budget Actual Final Budget Actual DEPARTMENTAL INCOME Metered water sales $ 2,682,904 $ 2,682,904 $ 2,875,851 $ 192,947 $ 2,694,092 Interest and penalties on water rents 28,000 28,000 25,317 (2,683) 25,177 2,710,904 2,710,904 2,901,168 190,264 2,719,269 USE OF MONEY AND PROPERTY Earnings on investments 9,343 17,879 8,536 SALE OF PROPERTY AND COMPENSATION FOR LOSS Insurance recoveries - 1,065 1,065 - 2,678 TOTAL REVENUES $ 2,711,004 $ 2,721,312 $ 2,920,112 $ 198,800 $ 2,722,169 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, 2023 (With Comparative Actuals for 2022) Original Final Variance with Budget Budget Actual Final Budget Actual GENERAL GOVERNMENT SUPPORT Central communications $ 175,485 $ 197,130 $ 195,539 $ 1,591 $ 176,671 Auditor 7,930 8,264 8,264 - 13,131 Unallocated insurance 113,957 113,957 101,123 12,834 107,421 Taxes and assessments on property 5,665 5,665 4,076 1,589 3,852 Contingent account 90,000 - - - - 393,037 325,016 309,002 16,014 301,075 HOME AND COMMUNITY SERVICES Water administration 89,259 86,425 85,984 86,015 Pumping, supply and power 181,700 219,265 205,866 13,399 174,000 Transmission and distribution 474,143 506,658 483,702 22,956 464,093 Capital projects 10,000 8,166 - 8,166 - 755,102 820,514 775,552 44,962 724,108 EMPLOYEE BENEFITS State retirement 36,963 36,963 30,570 6,393 70,523 Social security 29,206 32,429 32,429 - 31,206 Workers' compensation benefits 55,839 55,839 55,839 - 38,230 Life insurance Health and dental insurance 170,960 179,795 179,795 - 159,686 Medicare reimbursement 6,830 7,689 7,689 - 7,369 300,297 313,214 306,816 6,398 307,513 TOTAL EXPENDITURES 1,448,436 1,458,744 1,391,370 67,374 1,332,696 OTHER FINANCING USES Transfers out General Fund 275,000 275,000 275,000 - 275,000 Debt Service Fund 1,017,280 1,017,280 1,017,280 - 1,015,073 TOTAL OTHER FINANCING USES 1,292,280 1,292,280 1,292,280 - 1,290,073 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 2,740,716 $ 2,751,024 $ 2,683,650 $ 67,374 $ 2,622,769 See independent auditors' report. Village of Croton-on-Hudson, New York Debt Service Fund Comparative Balance Sheet May 31, ASSETS Cash and equivalents $ 588,401 $ 229,938 Due from other funds 92,213 406,052 Total Assets $ 680,614 $ 635,990 LIABILITIES AND FUND BALANCE Liabilities Due to other funds $ 265,791 $ 139,326 Fund balance Restricted 414,823 496,664 Total Liabilities and Fund Balance $ 680,614 $ 635,990 See independent auditors' report. Village of Croton-on-Hudson, New York Debt Service Fund Comparative Schedule of Revenues, Expenditures and Changes in Fund Balance - Budget and Actual Years Ended May 31, Original Final Variance with Budget Budget Actual Final Budget REVENUES Use of money and property $ - $ - $ 65,754 $ 65,754 EXPENDITURES Debt Service Principal Serial bonds 2,340,000 2,340,000 2,340,000 - Installment purchase debt 228,097 228,097 228,097 - 2,568,097 2,568,097 2,568,097 - Interest Serial bonds 987,935 987,935 987,935 - Installment purchase debt 24,834 24,834 24,834 - 1,012,769 1,012,769 1,012,769 - Refunding bond issuance costs - - - - Total Expenditures 3,580,866 3,580,866 3,580,866 - Deficiency of Revenues Over Expenditures (3,580,866) (3,580,866) (3,515,112) 65,754 OTHER FINANCING SOURCES (USES) Refunding bonds issued - - - - Payment to refunded bond escrow agent - - - - Issuance premium - - - - Transfers in 3,580,866 3,580,866 3,608,271 27,405 Transfers out (175,000) (175,000) (175,000) - Total Other Financing Sources 3,405,866 3,405,866 3,433,271 27,405 Net Change in Fund Balance (175,000) (175,000) (81,841) 93,159 FUND BALANCE Beginning of [...truncated...]