Documents

report 108 pages

Also attached to this agenda item: Final 2021 V of Croton Mgmt. Ltr

Village of Croton-on-Hudson, New York Financial Statements and Supplementary Information Year Ended May 31, 2021 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 Financial Statements We have audited the accompanying 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, 2021, and the related notes to the financial statements, which collectively comprise the Village’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Village’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Village’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the 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, 2021, and the respective changes in financial position and the respective budgetary comparison for the General and Water Funds for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter We draw attention to Note 2F in the notes to financial statements which disclose the effects of the Village’s adoption of the provisions of Governmental Accounting Standards Board (“GASB”) Statement No. 84, “Fiduciary Activities”. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that 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, 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 and Other Information Our audit for the year ended May 31, 2021 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, 2021 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual fund financial statements and schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole for the year ended May 31, 2021. We also previously audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the basic financial statements of the Village as of and for the year ended May 31, 2020 (not presented herein), and have issued our report thereon dated November 3, 2020, 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, 2020 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 relate directly to the underlying accounting and other records used to prepare the 2020 financial statements. The combining and individual fund financial statements and schedules have been subjected to the auditing procedures applied in the audit of the 2020 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, 2020. PKF O’Connor Davies, LLP Harrison, New York January 7, 2022 (This page intentionally left blank) Village of Croton-on-Hudson, New York Management’s Discussion and Analysis May 31, 2021 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, 2021. 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 2021  The General Fund completed fiscal year 2021 with a fund balance totaling $7,929,838, a decrease of $603,541 from the prior year. Of the total General Fund, the unassigned fund balance totaled $3,807,378, a decrease from the prior year of $1,986,313. The unassigned fund balance of $3,807,378 is 20% of the 2021-22 budgeted appropriations. The nonspendable classification included $217 for prepaid expenditures and the assigned classification included $262,687 for encumbrances, $1,629,000 for subsequent year’s expenditures and $311,376 for future retirement expenditures. $452,407 was restricted for employee benefits which represents accumulated vacation and sick leave in accordance with various collective bargaining agreements. In addition, $1,466,773 is restricted for pension benefits for the LOSAP.  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 $19,284,920.  As of the close of the current fiscal year, the Village’s governmental funds reported combined ending fund balances of $13,232,094.  The Capital Projects Fund expenditures totaled $5,479,539 and the fund balance at May 31, 20211 was $3,661,911.  The Village retired $218,534 of bond anticipation notes outstanding during the current fiscal year. At May 31, 2021, the Village had $334,155 of bond anticipation notes outstanding to finance capital projects.  During the 2021 fiscal year, the Village issued $2,609,990 of serial bonds and retired $2,190,400 of previously outstanding indebtedness. The Village’s total outstanding general obligation bonds payable at May 31, 2021 totaled $34,124,990 exclusive of unamortized issuance premiums of $1,094,196. This represents an increase in serial bonds of $419,590 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, see Note 2F. 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 post employment 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 $19,284,920 for fiscal year 2021. 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 $ 15,897,804 $ 15,910,180 Capital Assets, net 53,618,901 50,641,407 Total Assets 69,516,705 66,551,587 Deferred Outflows of Resources* 23,827,823 12,963,917 Current Liabilities 2,937,903 2,890,354 Long-Term Liabilities 98,524,930 93,972,667 Total Liabilities 101,462,833 96,863,021 Deferred Inflows of Resources* 11,166,615 2,250,974 Net Position Net investment in capital assets 21,515,376 19,221,916 Restricted 978,860 1,126,127 Unrestricted (41,779,156) (39,946,534) Total Net Position $ (19,284,920) $ (19,598,491) 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") $ 3,923,858 $ 4,158,555 Employee ("ERS") 3,630,639 5,360,583 Fire Service Award Program 686,347 109,137 OPEB 15,467,573 1,538,340 Deferred Loss on Refunding Bonds 119,406 - $ 23,827,823 $ 11,166,615 Outflows Inflows Amounts 2021 Deferred One component of the Village’s net position is net investment in capital assets of $21,515,376 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 $978,860 represents resources that are subject to external restrictions on their use. The restrictions are: Debt Service $ 219,645 $ 376,561 Special Purpose 759,215 749,566 Restricted Net Assets $ 978,860 $ 1,126,127 May 31, Changes in Net Position REVENUES Program Revenues Charges for Services $ 6,066,469 $ 8,310,845 Operating Grants and Contributions 139,030 170,759 Capital Grants and Contributions 2,664,428 596,474 Total Program Revenues 8,869,927 9,078,078 General Revenues Real Property Taxes 12,085,820 11,647,041 Other Tax Items 139,614 31,663 Non-Property Taxes 2,083,831 1,832,635 Unrestricted Use of Money and Property 1,942 59,734 Sale of Property and Compensation for Loss 226,763 88,691 Unrestricted State Aid 200,816 211,175 Miscellaneous 52,246 1,221 Insurance recoveries 59,723 22,339 Total General Revenues 14,850,755 13,894,499 Total Revenues 23,720,682 22,972,577 PROGRAM EXPENSES General Government Support 5,658,189 6,520,127 Public Safety 7,319,296 7,349,176 Health 491,921 534,255 Transportation 4,645,815 5,201,843 Economic Opportunity and Development 30,992 63,035 Culture and Recreation 1,016,690 1,484,949 Home and Community Services 3,249,304 3,363,175 Interest 994,904 1,056,073 Total Expenses 23,407,111 25,572,633 Change in Net Position 313,571 (2,600,056) NET POSITION Beginning, as reported (19,598,491) (16,998,435) Ending $ (19,284,920) $ (19,598,491) May 31, Year Ended Home and Community Services, 13.88% Culture and Recreation, 4.35% Transportation, 19.85% Public Safety, 31.27% General Government Support, 24.17% Interest, 4.25% Health, 2.10% Economic Opportunity and Development, 0.13% Sources of Expenses for Fiscal Year 2021 Governmental Activities Unrestricted State Aid 0.85% Non-Property Taxes 8.78% Real Property Taxes 50.95% Other 2.03% Operating Grants and Contributions 0.59% Charges for Services 25.57% Capital Grants and Contributions 11.23% Sources of Revenue for Fiscal Year 2021 Governmental Activities Governmental Activities: Governmental activities increased the Village’s net position by $313,571. For the fiscal year ended May 31, 2021, revenues from governmental activities totaled $23,720,682. Tax revenues of $14,309,265 consisting of real property taxes, other tax items and non-property taxes, represented the largest revenue source at 60%. 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, 2021 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 3J in the notes to financial statements. GASB No. 54 Classification Includes Former Classifications Nonspendable Fund Balance Prepaid Expenditures $ Restricted Fund Balance Reserved for Employee Benefits 459,071 Reserved for Pension Benefits 1,466,773 Reserved for Debt Service 119,645 Debt Service - for Subsequent Year's Expenditures 100,000 Reserved for Capital Projects 3,661,911 Reserved for Parklands 759,087 Reserved for Trusts 6,566,615 Assigned Fund Balance Reserved for Encumbrances: General Government Support 153,045 Public Safety 49,378 Health Transportation 31,150 Culture and Recreation 16,167 Home and Community Services 65,520 Designated for Subsequent Year's Expenditures: Unassigned Fund Balance 1,629,000 Designated for Future Retirement Expenditures 311,376 Water Fund 181,911 Sewer Fund 419,817 2,857,884 Unassigned Fund Balance Unreserved and Undesignated: 3,807,378 Total Fund Balances (as of May 31, 2021) $ 13,232,094 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 $13,232,094, a decrease of $47,364 from the prior year. The decrease is primarily due to use of the restricted employee benefits fund balance this fiscal year. General Fund Budgetary Highlights When the fiscal 2020-2021 budget was adopted, it anticipated the use of $836,000 of unassigned fund balance of which $285,000 was anticipated for the balancing of the operating budget and $100,000 to help offset capital expenditures. Actual results of operations resulted in a decrease of $603,541 to the overall general fund balance. Unassigned fund balance decreased by $1,986,313. Capital Asset and Debt Administration Capital Assets: The Village’s investment in capital assets for its governmental activities as of May 31, 2021, amounted to $53,618,901 (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 9,494,842 10,081,273 Machinery and equipment 4,111,074 3,773,241 Infrastructure 30,421,453 29,472,257 Construction-in-Progress 4,818,521 2,541,625 Total $ 53,618,901 $ 50,641,407 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, 2021, the Village had total debt outstanding of $35,904,273, comprised of general obligation bonded debt of $34,124,990, inclusive of $1,094,196 of unamortized premiums, and installment purchase debt of $685,087. During the 2020-2021 fiscal year the Village issued $2,609,990 of serial bonds and retired $2,325,509 of serial bonds and made principal payment of $202,661 of the debt installment. 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 Janine King, 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 $ 12,850,772 Investments 1,217,905 Receivables Taxes, net Accounts 65,032 Water rents 699,089 Sewer rents 116,351 State and Federal aid 547,135 Due from other governments 401,050 Prepaid expenses Capital assets Not being depreciated 9,591,532 Being depreciated, net 44,027,369 Total Assets 69,516,705 DEFERRED OUTFLOWS OF RESOURCES Deferred charge on refunding bonds 119,406 Pension related 7,554,497 OPEB related 15,467,573 Length of service awards program(s) 686,347 Total Deferred Outflows of Resources 23,827,823 LIABILITIES Accounts payable 644,363 Accrued liabilities 573,720 Deposits payable 524,559 Employee payroll deductions 12,102 Bond anticipation notes payable 334,155 Unearned revenues 576,519 Accrued interest payable 272,485 Non-current liabilities Due within one year 2,796,993 Due in more than one year 95,727,937 Total Liabilities 101,462,833 DEFERRED INFLOWS OF RESOURCES Pension related 9,519,138 OPEB related 1,538,340 Length of service awards program(s) 109,137 Total Deferred Inflows of Resources 11,166,615 NET POSITION Net investment in capital assets 21,515,376 Restricted Debt service 219,645 Special purpose 759,215 Unrestricted (41,779,156) Total Net Position $ (19,284,920) The notes to the financial statements are an integral part of this statement. May 31, 2021 Governmental Activities (This page intentionally left blank) Village of Croton-on-Hudson, New York Statement of Activities Year Ended May 31, 2021 Functions/Programs Governmental activities General government support $ 5,658,189 $ 506,655 $ 18,669 $ - $ (5,132,865) Public safety 7,319,296 481,681 20,497 - (6,817,118) Health 491,921 311,923 32,374 - (147,624) Transportation 4,645,815 1,107,103 28,681 2,235,033 (1,274,998) Economic opportunity and development 30,992 - - - (30,992) Culture and recreation 1,016,690 68,906 38,708 400,762 (508,314) Home and community services 3,249,304 3,590,201 - 340,998 Interest 994,904 - - 28,633 (966,271) Total Governmental Activities $ 23,407,111 $ 6,066,469 $ 139,030 $ 2,664,428 (14,537,184) General revenues Real property taxes 12,085,820 Other tax items Interest and penalties on real property taxes 139,614 Non-property taxes Non-property tax distribution from County 1,849,167 Franchise fees 109,116 Utilities gross receipts taxes 125,548 Unrestricted use of money and property 1,942 Sale of property and compensation for loss 226,763 Unrestricted State aid 200,816 Miscellaneous 52,246 Insurance recoveries 59,723 Total General Revenues 14,850,755 Change in Net Position 313,571 Net Position - Beginning (19,598,491) Net Position - Ending $ (19,284,920) 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 $ 7,751,897 $ 273,088 $ 251,132 Investments 1,217,905 - - Taxes receivable, net of allowance for uncollectible amounts - - Other receivables Accounts 63,532 - - Water rents - 699,089 - Sewer rents - - - State and Federal aid - - - Due from other governments 401,050 - - Due from other funds 642,849 8,475 31,746 Prepaid expenditures - - Total Assets $ 10,077,703 $ 980,652 $ 282,878 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 391,440 $ 24,311 $ - Accrued liabilities 548,207 25,088 - Bond anticipation notes payable - - - Deposits payable 524,559 - - Employee payroll deductions 12,102 - - Due to other funds 94,746 692,050 63,233 Unearned revenues 576,519 - - Total Liabilities 2,147,573 741,449 63,233 Deferred inflows of resources Deferred tax revenues - - Total Liabilities and Deferred Inflows of Resources 2,147,865 741,449 63,233 Fund balances Nonspendable - - Restricted 1,919,180 6,664 219,645 Assigned 2,203,063 232,539 - Unassigned 3,807,378 - - Total Fund Balances 7,929,838 239,203 219,645 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 10,077,703 $ 980,652 $ 282,878 The notes to the financial statements are an integral part of this statement. May 31, 2021 Water Debt Service Governmental $ 3,644,172 $ 930,483 $ 12,850,772 - - 1,217,905 - - 1,500 - 65,032 - - 699,089 - 116,351 116,351 547,135 - 547,135 - - 401,050 65,507 172,845 921,422 - - $ 4,258,314 $ 1,219,679 $ 16,819,226 $ 216,280 $ 12,332 $ 644,363 - 573,720 334,155 - 334,155 - - 524,559 - 12,102 45,968 25,425 921,422 - - 576,519 596,403 38,182 3,586,840 - - 596,403 38,182 3,587,132 - - 3,661,911 759,215 6,566,615 - 422,282 2,857,884 - - 3,807,378 3,661,911 1,181,497 13,232,094 $ 4,258,314 $ 1,219,679 $ 16,819,226 Total Funds Non-Major Governmental Projects Capital (This page intentionally left blank) Village of Croton-on-Hudson, New York Reconciliation of Governmental Funds Balance Sheet to the Government-Wide Statement of Net Position Amounts Reported for Governmental Activities in the Statement of Net Position are Different Because: Total Fund Balances - Governmental Funds 13,232,094 $ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Capital assets - non-depreciable 9,591,532 Capital assets - depreciable 88,520,405 Accumulated depreciation (44,493,036) 53,618,901 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 7,554,497 Deferred outflows - OPEB related 15,467,573 Deferred outflows - length of service awards program(s) 686,347 Deferred inflows - pension related (9,519,138) Deferred inflows - OPEB related (1,538,340) Deferred inflows - length of service awards program(s) (109,137) 12,541,802 Other long-term assets that are not available to pay for current period expenditures and, therefore, are either deferred or not reported in the funds. Real property taxes 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 (272,485) General Obligation Bonds payable (34,124,990) Installment purchase debt payable (685,087) Compensated absences (2,065,368) Net pension liability-ERS (17,662) Net pension liability-PFRS (1,362,150) Total OPEB Liability (56,634,074) Fire Service Award Program (2,541,403) (97,703,219) 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 119,406 Premium on general obligation bonds (1,094,196) (974,790) Net Position of Governmental Activities (19,284,920) $ The notes to the financial statements are an integral part of this statement. May 31, 2021 Village of Croton-on-Hudson, New York Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds Year Ended May 31, 2021 General REVENUES Real property taxes $ 12,131,047 $ - $ - Other tax items 139,614 - - Non-property taxes 2,083,831 - - Departmental income 1,909,538 3,001,702 - Net change in fair value of investments 88,152 - - Use of money and property 229,040 28,624 Licenses and permits 209,585 - - Fines and forfeitures 140,520 - - Sale of property and compensation for loss 226,763 - - State aid 264,333 - - Federal aid 44,377 - - Miscellaneous 52,262 - Total Revenues 17,519,062 3,001,803 28,633 EXPENDITURES Current General government support 3,220,444 280,618 - Public safety 4,028,125 - - Health 431,761 - - Transportation 2,125,401 - - Economic opportunity and development 30,992 - - Culture and recreation 490,203 - - Home and community services 991,539 721,288 - Employee benefits 4,619,751 313,881 - Debt service Principal - - 2,393,061 Interest 11,023 - 1,128,421 Capital outlay - - - Total Expenditures 15,949,239 1,315,787 3,521,482 Excess (Deficiency) of Revenues Over Expenditures 1,569,823 1,686,016 (3,492,849) OTHER FINANCING SOURCES (USES) Bonds issued - - - Insurance recoveries 59,723 - - Transfers in 478,614 - 3,535,933 Transfers out (2,711,701) (1,304,103) (200,000) Total Other Financing Sources (Uses) (2,173,364) (1,304,103) 3,335,933 Net Change in Fund Balances (603,541) 381,913 (156,916) FUND BALANCES (DEFICIT) Beginning of Year 8,533,379 (142,710) 376,561 End of Year $ 7,929,838 $ 239,203 $ 219,645 The notes to the financial statements are an integral part of this statement. Water Service Debt Governmental Governmental Funds $ - $ - $ 12,131,047 - - 139,614 - - 2,083,831 - 511,244 5,422,484 - - 88,152 - 258,414 - - 209,585 - - 140,520 - - 226,763 1,431,861 - 1,696,194 803,172 - 847,549 400,762 9,000 462,033 2,635,795 520,893 23,706,186 - 19,320 3,520,382 - - 4,028,125 - - 431,761 - - 2,125,401 - - 30,992 - - 490,203 - 127,694 1,840,521 - 10,202 4,943,834 - - 2,393,061 - - 1,139,444 5,479,539 - 5,479,539 5,479,539 157,216 26,423,263 (2,843,744) 363,677 (2,717,077) 2,609,990 - 2,609,990 - - 59,723 325,644 - 4,340,191 (18,064) (106,323) (4,340,191) 2,917,570 (106,323) 2,669,713 73,826 257,354 (47,364) 3,588,085 924,143 13,279,458 $ 3,661,911 $ 1,181,497 $ 13,232,094 Non-Major Total Capital Projects (This page intentionally left blank) Village of Croton-on-Hudson, New York Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended May 31, 2021 Amounts Reported for Governmental Activities in the Statement of Activities are Different Because: Net Change in Fund Balances - Total Governmental Funds $ (47,364) 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 5,284,650 Depreciation expense (2,307,156) 2,977,494 Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Real property taxes (45,227) 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 (2,609,990) Principal paid on general obligation bonds 2,190,400 Principal paid on installment purchase debt 202,661 (216,929) 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 32,666 Compensated absences 123,624 Changes in pension liabilities and related deferred outflows and inflows of resources 327,452 Changes in OPEB liabilities and related deferred outflows and inflows of resources (2,950,019) Amortization of loss on refunding bonds and issuance premium 111,874 (2,354,403) Change in Net Position of Governmental Activities $ 313,571 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, 2021 Final Variance with Final Budget REVENUES Real property taxes $ 11,937,833 $ 11,937,833 $ 12,131,047 $ 193,214 Other tax items 35,001 35,001 139,614 104,613 Non-property taxes 1,262,000 1,262,000 2,083,831 821,831 Departmental income 4,345,846 3,852,522 1,909,538 (1,942,984) Net change in fair value of investments - - 88,152 88,152 Use of money and property 210,375 168,373 229,040 60,667 Licenses and permits 177,000 177,000 209,585 32,585 Fines and forfeitures 350,000 329,220 140,520 (188,700) Sale of property and compensation for loss 19,000 114,001 226,763 112,762 State aid 157,000 163,559 264,333 100,774 Federal aid - 32,374 44,377 12,003 Miscellaneous 45,347 45,347 52,262 6,915 Total Revenues 18,539,402 18,117,230 17,519,062 (598,168) EXPENDITURES Current General government support 3,612,076 3,532,297 3,220,444 311,853 Public safety 3,947,005 4,049,419 4,028,125 21,294 Health 421,035 449,635 431,761 17,874 Transportation 2,843,518 2,241,908 2,125,401 116,507 Economic opportunity and development 48,922 41,676 30,992 10,684 Culture and recreation 797,317 571,253 490,203 81,050 Home and community services 474,388 1,059,807 991,539 68,268 Employee benefits 4,754,551 4,704,302 4,619,751 84,551 Debt service Interest 11,024 11,024 11,023 Total Expenditures 16,909,836 16,661,321 15,949,239 712,082 Excess of Revenues Over Expenditures 1,629,566 1,455,909 1,569,823 113,914 OTHER FINANCING SOURCES (USES) Insurance recoveries - 43,214 59,723 16,509 Transfers in 475,000 475,000 478,614 3,614 Transfers out (2,604,593) (2,711,704) (2,711,701) Total Other Financing Uses (2,129,593) (2,193,490) (2,173,364) 20,126 Net Change in Fund Balances (500,027) (737,581) (603,541) 134,040 FUND BALANCES (DEFICITS) Beginning of Year 500,027 737,581 8,533,379 7,795,798 End of Year $ - $ - $ 7,929,838 $ 7,929,838 The notes to the financial statements are an integral part of this statement. General Actual Budget Original Budget Final Variance with Final Budget $ - $ - $ - $ - - - - - - - - - 2,733,013 2,721,328 3,001,702 280,374 - - - - 5,000 5,000 (4,899) - - - - - - - - - - - - - - - - - - - - - - - - 2,738,013 2,726,328 3,001,803 275,475 398,990 296,937 280,618 16,319 - - - - - - - - - - - - - - - - - - - - 793,020 830,020 721,288 108,732 297,174 350,489 313,881 36,608 - - - - 1,489,184 1,477,446 1,315,787 161,659 1,248,829 1,248,882 1,686,016 437,134 - - - - - - - - (1,304,103) (1,304,103) (1,304,103) - (1,304,103) (1,304,103) (1,304,103) - (55,274) (55,221) 381,913 437,134 55,274 55,221 (142,710) (197,931) $ - $ - $ 239,203 $ 239,203 Water Budget Actual Original Budget (This page intentionally left blank) Village of Croton-on-Hudson, New York Notes to Financial Statements May 31, 2021 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, 2021 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, 2021 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. Issuance 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, 2021 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. 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. 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, 2021. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 1 - Summary of Significant Accounting Policies (Continued) 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. 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, 2021, 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 1 - Summary of Significant Accounting Policies (Continued) 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). 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 $576,519 for ambulance, fire and parking permit 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 position 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 position 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 outflows of resources of $119,406 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, 2021 Note 1 - Summary of Significant Accounting Policies (Continued) The Village also reported deferred inflows of resources of $292 for uncollected taxes in the General Fund. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. 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 3G. 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 - The net pension liability represents the Village’s proportionate share of the net pension liability 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”. 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 1 - Summary of Significant Accounting Policies (Continued) Net investment in capital assets consists of capital assets, net of accumulated depreciation/amortization and reduced by outstanding balances of bonds and other debt that are attributable to the acquisition, construction, or improvement of those assets. Deferred outflows of resources and deferred inflows of resources that are attributable to the acquisition, construction, or improvement of those assets or related debt are also included in this component of net position. Restricted net position consists of restricted assets 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 capital projects, parklands, and debt. 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 1 - Summary of Significant Accounting Policies (Continued) fund balance in all other governmental funds represents any positive remaining amount after classifying nonspendable, restricted or committed fund balance amounts. Unassigned fund balance, in the General Fund, represents amounts not classified as nonspendable, restricted, committed or assigned. The General Fund is the only fund that would report a positive unassigned fund balance. For all governmental funds other than the General Fund, any deficit fund balance is reported as unassigned. In order to calculate the amounts to report as restricted and unrestricted fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. When both restricted and unrestricted amounts of fund balance are available for use for expenditures incurred, it is the Village’s policy to use restricted amounts first and then unrestricted amounts as they are needed. For unrestricted amounts of fund balance, it is the Village’s policy to use fund balance in the following order: committed, assigned, and unassigned. F. Encumbrances In governmental funds, encumbrance accounting, under which purchase orders, contracts and other commitments for the expenditure of monies are recorded in order to reserve applicable appropriations is generally employed as an extension of formal budgetary integration in the General, Water and Sewer funds. Encumbrances outstanding at year-end are generally reported as assigned fund balance since they do not constitute expenditures or liabilities. G. Use of Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, deferred outflows of resources, liabilities and deferred inflows of resources and disclosures of contingent assets and liabilities at the date of the financial statements. Estimates also affect the reported amounts of revenues and expenditures/expenses during the reporting period. Actual results could differ from those estimates. H. Subsequent Events Evaluation by Management Management has evaluated subsequent events for disclosure and/or recognition in the financial statements through the date that the financial statements were available to be issued, which date is January 7, 2022. 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 2 - Stewardship, Compliance and Accountability (Continued) b) The Board of Trustees, on or before March 31st, meets to discuss and review the tentative budget. c) The Board of Trustees conducts a public hearing on the tentative budget to obtain taxpayer comments on or before April 15th. d) After the public hearing and on or before May 1st, the Trustees meet to consider and adopt the budget. e) Formal budgetary integration is employed during the year as a management control device for General, Water, Debt Service and Sewer funds. f) Budgets for General, Water, Debt Service and Sewer funds are legally adopted annually on a basis consistent with generally accepted accounting principles. The Capital Projects Fund is budgeted on a project basis. An annual budget is not adopted for the Special Purpose Fund since other means control the use of these resources (e.g., grant awards) and sometimes span a period of more than one fiscal year. g) The Village Board has established legal control of the budget at the function level of expenditures. Transfers between appropriation accounts, at the function level, require approval by the Board of Trustees. Any modification to appropriations resulting from increases in revenue estimates or supplemental reserve appropriations also require a majority vote by the Board. h) Appropriations in General, Water, Debt Service and Sewer funds lapse at the end of the fiscal year, except that outstanding encumbrances are reappropriated in the succeeding year pursuant to the Uniform System of Accounts promulgated by the Office of the State Comptroller. Budgeted amounts are as originally adopted, or as amended by the Board of Trustees. B. Property Tax Limitations The Village is permitted by the Constitution of the State of New York to levy taxes up to 2% of the five year average full valuation of taxable real estate located within the Village, exclusive of the amount raised for the payment of interest on and redemption of long-term debt. In accordance with this definition, the maximum amount of the levy for 2020-2021 was $24,144,615 which exceeded the actual levy (inclusive of exclusions) by $12,206,782. 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 2 - Stewardship, Compliance and Accountability (Continued) Factor; provided, however that in no case shall the levy growth factor be less than one. The “Inflation Factor” is the quotient of: (i) the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the coming fiscal year minus the average of the National Consumer Price Indexes determined by the United States Department of Labor for the twelve-month period ending six months prior to the start of the prior fiscal year, divided by (ii) the average of the National Consumer Price Indexes determined by the United States with the result expressed as a decimal to four places. The Village is required to calculate its tax levy limit for the upcoming year in accordance with the provision above and provide all relevant information to the New York State Comptroller prior to adopting its budget. The Tax Levy Limitation Law sets forth certain exclusions to the real property tax levy limitation of the Village, including exclusions for certain portions of the expenditures for retirement system contributions and tort judgments payable by the Village. The Village Board of Trustees may adopt a budget that exceeds the tax levy limit for the coming fiscal year, only if the Board first enacts, by a vote of at least sixty percent of the total voting power of the Board, a local law to override such limit for such coming fiscal year. C. Expenditures in Excess over Budget The following functional expenditure categories exceed their budgetary authorization by the amounts indicated: Employee Benefits State Retirement $ 114,872 State Retirement - Police and Fire 112,688 D. Excess of Actual Expenditures over budget – Capital Projects Fund The following capital projects exceeded their budgetary provisions by the amounts indicated: Capital Projects Fund DPW Equipment $ Sidewalks and Curbs General Road 1,867 E. Capital Projects Fund Deficits The deficits in various individual projects arise in-part because of the application of generally accepted accounting principles to the financial reporting of such funds. The proceeds of bond anticipation notes issued to finance construction of capital projects are not recognized as an “other financing source”. Liabilities for bond anticipation notes payable are accounted for in the Capital Projects Fund. Bond anticipation notes are recognized as revenue only to the extent that they are redeemed. This deficit will be reduced and eliminated as the bond anticipation notes are redeemed from interfund transfers from other governmental funds or converted to permanent financing. Other deficits, where no bond anticipation notes were issued or outstanding to the extent of the project deficit, arise because of expenditures exceeding current financing on the projects. These deficits will be eliminated with the subsequent receipt or issuance of authorized financing. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 2 - Stewardship, Compliance and Accountability (Continued) F. Adoption of Accounting Standard For the year ended May 31, 2021, the Village implemented the provisions of GASB Statement No. 84, “Fiduciary Activities”. The objective of this statement is to improve guidance regarding the identification of fiduciary activities for accounting and financial reporting purposes and how those activities should be reported. The statement established criteria for identifying fiduciary activities of all state and local governments. The focus of the criteria generally is on 1) whether a government is controlling the assets of the fiduciary activity and 2) the beneficiaries with whom a fiduciary relationship exists. As a result of the adoption of this standard, certain transactions previously reported within governmental funds are now reflected within the Fiduciary Fund while other transactions previously reported in the Fiduciary Fund are now reflected within governmental funds. G. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified to conform with the current year presentation with respect to the implementation of the provisions of GASB Statement No. 84. These reclassifications had no effect on previously reported fund balance amounts. 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 $ 683,374 $ - $ 81,647 $ 478,733 122,994 U.S. and international equities funds 534,531 534,531 - - - $ 1,217,905 $ 534,531 $ 81,647 $ 478,733 $ 122,994 Type of Investment Bond funds $ 683,374 $ - $ 276,196 $ 325,531 $ 81,647 U.S. and international equities funds 534,531 534,531 - - - $ 1,217,905 $ 534,531 $ 276,196 $ 325,531 $ 81,647 Fair 1-5 6-10 Value N/A Years Years Thereafter Value N/A A or better BBB 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) B. Taxes Receivable Taxes receivable at May 31, 2021 consisted of the following: Prior years $ 1,422 Property acquired for taxes 32,185 33,607 Less - Allowance for uncollectible amounts (33,354) $ C. Due From/To Other Funds The balances reflected as due from/to other funds at May 31, 2021 were as follows: Fund General $ 642,849 $ 94,746 Water 8,475 692,050 Debt Service 31,746 63,233 Capital Projects 65,507 45,968 Non-Major Governmental 172,845 25,425 $ 921,422 $ 921,422 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. D. 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 2,541,625 3,852,979 1,576,083 4,818,521 Total Capital Assets, not being depreciated $ 7,314,636 $ 3,852,979 $ 1,576,083 $ 9,591,532 Balance June 1, May 31, Balance Additions Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) Deletions Capital Assets, being depreciated: Buildings and improvements $ 17,137,484 $ 52,043 $ - $ 17,189,527 Machinery and equipment 12,105,660 1,051,689 - 13,157,349 Infrastructure 56,269,507 1,904,022 - 58,173,529 Total Capital Assets, being depreciated 85,512,651 3,007,754 - 88,520,405 Less Accumulated Depreciation for: Buildings and improvements 7,056,211 638,474 - 7,694,685 Machinery and equipment 8,332,419 713,856 - 9,046,275 Infrastructure 26,797,250 954,826 - 27,752,076 Total Accumulated Depreciation 42,185,880 2,307,156 - 44,493,036 Total Capital Assets, being depreciated, net $ 43,326,771 $ 700,598 $ - $ 44,027,369 Capital Assets, net $ 50,641,407 $ 4,553,577 $ 1,576,083 $ 53,618,901 Balance Balance June 1, May 31, Additions Depreciation expense was charged to the Village’s functions and programs as follows: General Government Support $ 373,077 Public Safety 325,176 Health 39,439 Transportation 806,823 Culture and Recreation 261,437 Home and Community Services 501,204 $ 2,307,156 E. Accrued Liabilities Accrued liabilities at May 31, 2021 were as follows: Payroll and Employee Benefits $ 548,207 $ 25,088 $ $ 573,720 Total Fund Water Non-Major Governmental Funds Fund General Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) F. 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 12/13/2018 12/10/2021 0.72 % $ 552,689 $ - $ 218,534 $ 334,155 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 $11,023 were recorded in the fund financial statements in the General Fund and $6,977 were recorded in the government-wide financial statements for governmental activities. G. Long-Term Liabilities The following table summarizes changes in the Village’s long-term liabilities for the year ended May 31, 2021: General Obligation Bonds Payable $ 33,705,400 $ 2,609,990 $ 2,190,400 $ 34,124,990 $ 2,374,990 Plus Unamortized premium on bonds 1,229,305 - 135,109 1,094,196 - 34,934,705 2,609,990 2,325,509 35,219,186 2,374,990 Installment Purchase Debt Payable 887,748 - 202,661 685,087 215,003 Other Non-Current Liabilities: Net Pension Liability-ERS 5,227,312 - 5,209,650 17,662 - Net Pension Liability-PFRS 4,352,650 - 2,990,500 1,362,150 - Total Pension Liability - Length of service award program 1,982,924 653,901 95,422 2,541,403 - Compensated Absences 2,188,992 95,376 219,000 2,065,368 207,000 Other Postemployment Benefit Liability 44,398,336 13,488,687 1,252,949 56,634,074 - Total Other Non- Current Liabilities 59,037,962 14,237,964 9,970,182 63,305,744 422,003 Total Long-Term Liabilities $ 93,972,667 $ 16,847,954 $ 12,295,691 $ 98,524,930 $ 2,796,993 Due Within One Year New Issues/ Additions and/or Payments May 31, Maturities Balance Balance June 1, 2020 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) 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, 2021 are comprised of the following individual issues: Year of Final Purpose Issue Maturity Various Purposes $ 1,058,548 April, 2022 4.200 % $ 95,000 Various Purposes 1,686,060 April, 2028 2.125-3.00 815,000 Refunding Bond 3,270,000 November, 2024 2.000 725,000 Various Purposes 4,717,500 May, 2033 1.50-3.00 3,045,000 Various Purposes 6,089,500 April, 2044 3.000-4.00 5,125,000 Various Purposes 4,360,531 January, 2040 2.500-5.00 3,595,000 Refunding Bond 2,035,000 July, 2026 4.000-5.00 1,335,000 Various Purposes 8,578,200 April, 2036 3.000 6,850,000 Various Purposes 1,331,780 February, 2032 2.000-3.00 1,030,000 Various Purposes 1,616,700 December, 2032 2.250-3.00 1,330,000 Various Purposes 640,000 May, 2034 3.000-5.00 580,000 Refunding Bond 4,585,000 May, 2030 5.000 3,820,000 Various Purposes 3,335,400 December, 2036 2.000-2.25 3,170,000 Various Purposes 2,609,990 October, 2038 1.000-2.00 2,609,990 $ 34,124,990 Amount Outstanding at May 31, Original Issue Amount Interest Rates Interest expenditures of $1,078,151 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $942,217 was recorded in the government-wide financial statements for governmental activities. Installment 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, 2021 was $685,087. Interest expenditures of $50,270 were recorded in the fund financial statements in the Debt Service Fund. Interest expense of $45,710 was recorded in the government-wide financial statements for governmental activities. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) Payments to Maturity The annual requirements to amortize all bonded and installment purchase debt outstanding as of May 31, 2021, including interest payments of $8,979,123 are as follows: Year Ending May 31, $ 2,374,990 $ 1,064,559 $ 215,003 $ 37,928 $ 2,589,993 $ 1,102,487 2,380,000 972,369 228,097 24,834 2,608,097 997,203 2,440,000 899,463 241,987 10,943 2,681,987 910,406 2,510,000 821,807 - - 2,510,000 821,807 2,400,000 743,869 - - 2,400,000 743,869 2027-2031 10,450,000 2,630,113 - - 10,450,000 2,630,113 2032-2036 7,740,000 1,264,538 - - 7,740,000 1,264,538 2037-2041 2,875,000 431,300 - - 2,875,000 431,300 2042-2044 955,000 77,400 - - 955,000 77,400 $ 34,124,990 $ 8,905,418 $ 685,087 $ 73,705 $ 34,810,077 $ 8,979,123 General Obligation Interest Total Installment Purchase Debt Principal Principal Interest Principal Interest Bonds The above general obligation bonds and installment 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 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) 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 ending in 2021 are as follows: Tier/Plan Rate ERS 3 A14/41J 16.1% 4 A15/41J 16.1 5 A15/41J 13.4 6 A15/41J 9.6 PFRS 2 384D 25.6% 5 384D* 21.0 5 384D 24.5 6 384D* 15.7 6 384D 22.2 * Indicates employees are required to make contributions for this PFRS tier/plan. At May 31, 2021, the Village reported the following for its proportionate share of the net pension liability for ERS and PFRS: Measurement date Net pension liability $ 17,662 $ 1,362,150 Villages' proportion of the net pension liability 0.0177371 % 0.0784524 % Change in proportion since the prior measurement date (0.0020031) % (0.0029826) % March 31, 2021 March 31, 2021 PFRS ERS The net pension liability was measured as of March 31, 2021 and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The Village’s proportion of the net pension liability was based on a computation of the actuarially determined indexed present value of future compensation by employer relative to the total of all participating members. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) For the year ended May 31, 2021, the Village recognized its proportionate share of pension expense in the government-wide financial statements of $360,339 for ERS and $752,044 for PFRS. Pension expenditures of $784,097 for ERS and $758,360 for PFRS were recorded in the fund financial statements and were charged to the following funds: $ 717,067 $ 758,360 Water Fund 65,309 - Sewer Fund 1,721 - $ 784,097 $ 758,360 ERS PFRS At May 31, 2021, 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 $ 215,695 $ - $ 302,254 $ - Changes of assumptions 3,247,387 61,247 3,346,655 - Net difference between projected and actual earnings on pension plan investments - 5,073,433 - 4,005,322 Changes in proportion and differences between Village contributions and proportionate share of contributions 32,235 225,903 125,054 153,233 Village contributions subsequent to the measurement date 135,322 - 149,895 - $ 3,630,639 $ 5,360,583 $ 3,923,858 $ 4,158,555 Differences between expected and actual experience $ 517,949 $ - Changes of assumptions 6,594,042 61,247 Net difference between projected and actual earnings on pension plan investments - 9,078,755 Changes in proportion and differences between Village contributions and proportionate share of contributions 157,289 379,136 Village contributions subsequent to the measurement date 285,217 - $ 7,554,497 $ 9,519,138 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, 2021 Note 3 - Detailed Notes on All Funds (Continued) $135,322 and $149,895 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, 2022. 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, $ (363,675) $ (160,447) (164,251) (17,264) (320,098) (142,741) (1,017,242) (714,348) - 650,208 $ (1,865,266) $ (384,592) ERS PFRS The total pension liability for the March 31, 2021 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, 2021 March 31, 2021 Actuarial valuation date April 1, 2020 April 1, 2020 Investment rate of return 5.9% * 5.9% * Salary scale 4.4% 6.2% Inflation rate 2.7% 2.7% Cost of living adjustments 1.4% 1.4% *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-2020. 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, 2021 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 % 4.05 % International Equity 6.30 Private Equity 6.75 Real Estate 4.95 Opportunistic/ARS Portfolio 4.50 Credit 3.63 Real Assets 5.95 Fixed Income 0.00 Cash 0.50 100 % Long-Term Expected Target Real Rate Allocation of Return The real rate of return is net of the long-term inflation assumption of 2.7%. 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) $ 4,902,159 $ 17,662 $ (4,486,989) Village's proportionate share of the PFRS net pension liability (asset) $ 5,792,629 $ 1,362,150 $ (2,305,142) (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, 2021 Note 3 - Detailed Notes on All Funds (Continued) The components of the collective net pension liability as of the March 31, 2021 measurement date were as follows: Total pension liability $ 220,680,157,000 $ 41,236,775,000 $ 261,916,932,000 Fiduciary net position (220,580,583,000) (39,500,500,000) (260,081,083,000) Employers' net pension liability $ 99,574,000 $ 1,736,275,000 $ 1,835,849,000 Fiduciary net position as a percentage of total pension liability 99.95% 95.79% 99.30% 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, 2021 represent the employer contribution for the period of April 1, 2021 through May 31, 2021 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, 2021 were $135,322 and $149,895, 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, 2021. 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, 2020, 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 Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) receive credit for five years of firefighting service rendered prior to the establishment of the 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, 2020 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, 2020 measurement date was determined using an actuarial valuation as of that date. Actuarial Assumptions. The total pension liability in the December 31, 2020 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. Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) Discount Rate. The discount rate used to measure the total pension liability was 1.93%. This was the yield to maturity of the S&P Municipal Bond 20 Year High Grade Rate Index as of December 31, 2020. In describing this index, S&P Dow Jones Indices notes that the index consists of bonds 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 12/31/2019 measurement date 1,982,924 $ Service Cost 73,174 Interest 65,473 Changes of assumptions or other inputs 467,429 Differences between expected and actual experience 47,825 Benefit Payments (95,422) Balance as of 12/31/2020 measurement date 2,541,403 $ 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, 2020 measurement date, calculated using the discount rate of 1.93 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 (0.93 percent) or 1-percentage point higher (2.93 percent) than the current rate: 1% Current 1% Decrease Discount Rate Increase (0.93%) (1.93%) (2.93%) Total Pension Liability 3,006,390 $ 2,541,403 $ 2,176,888 $ Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions For the year ended December 31, 2020, the Village recognized pension expense of $204,169 in the governmental activities and $101,547 in the Fire Service Award Program – sub-fund. At December 31, 2020, 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 57,893 $ 15,039 $ Changes of assumptions or other inputs 596,586 94,098 Benefit payments & administrative expenses subsequent to the measurement date 31,868 - 686,347 $ 109,137 $ Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) $31,868 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, 2022. 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 , 61,089 $ 61,089 61,089 61,089 61,089 Thereafter 239,897 545,342 $ 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, 2021, the following employees were covered by the benefit terms: Inactive employees currently receiving benefit payments Active employees Total Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) The Village’s total OPEB liability of $56,634,074 was measured as of May 31, 2021, and was determined by an actuarial valuation as of June 1, 2020. The total OPEB liability in the June 1, 2020 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 1.59% Healthcare cost trend rates 8.0% for 2021, 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 2006 mortality table projected fully generationally using projection scale MP-2020. The Village’s change in the total OPEB liability for the year ended May 31, 2021 is as follows: Total OPEB Liability - Beginning of Year $ 44,398,336 Service Cost 940,629 Interest 1,151,200 Difference between expected and actual experience 3,709,278 Change in assumptions or other inputs 7,687,580 Benefit payments (1,252,949) Total OPEB Liability - End of Year $ 56,634,074 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 (.59%) or 1 percentage point higher (2.59%) than the current discount rate: Total OPEB Liability $ 64,025,109 $ 56,634,074 $ 49,243,038 1% Current 1% Decrease Discount Rate Increase (0.59%) (1.59%) (2.59%) 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: Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) Healthcare (8.0% decreasing Total OPEB Liability $ 47,046,757 $ 56,634,074 $ 68,055,057 1% Cost Trend 1% Decrease Rates Increase to 4.0%) to 5.0%) to 6.0%) (7.0% decreasing (9.0% decreasing For the year ended May 31, 2021, the Village recognized OPEB expense of $4,202,968 in the government-wide financial statements. At May 31, 2021, 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 $ 11,152,282 $ - Differences between expected and actual experience 4,315,291 1,538,340 $ 15,467,573 $ 1,538,340 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, $ 2,111,139 2,111,139 2,111,139 2,111,139 2,111,139 Thereafter 3,373,538 $ 13,929,233 H. Revenues and Expenditures Interfund Transfers Interfund transfers are defined as the flow of assets, such as cash or goods and services, without the equivalent flow of assets in return. The interfund transfers reflected below have been reflected as transfers: Village of Croton-on-Hudson, New York Notes to Financial Statements (Continued) May 31, 2021 Note 3 - Detailed Notes on All Funds (Continued) Transfers Out General Fund $ - $ 2,386,057 $ 325,644 $ 2,711,701 Water Fund 275,000 1,029,103 - 1,304,103 Debt Service Fund 200,000 - - 200,000 Capital Projects Fund 3,614 14,450 - 18,064 Non-Major Governmental Funds - 106,323 - 106,323 $ 478,614 $ 3,535,933 $ 325,644 $ 4,340,191 Fund Transfers In Fund Debt Projects Service Capital General Fund Total Transfers are used to 1) move funds from the operating funds to the Debt Service Fund as debt service principal and interest payments become due, 2) move amounts earmarked in the operating funds to fulfill commitments for Capital Projects Fund expenditures and 3) move amounts from the Capital Projects Fund to the General Fund, for unspent transfers and 4) move amounts from the Water Fund to the General Fund for shared costs 5) move amounts in the Debt Service Fund to the General Fund as principal and interest payments become due. I. 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, 2021 Note 3 - Detailed Notes on All Funds (Continued) J. Fund Balances Nonspendable: Prepaid expenditures $ $ - $ - $ - $ - $ $ 5,849 $ - $ - $ - $ - $ 5,849 Restricted: Employee benefits 452,407 6,664 - - - 459,071 582,089 6,664 - - - 588,753 Pension benefit 1,466,773 - - - - 1,466,773 1,340,347 - - - - 1,340,347 Debt service - - 119,645 - - 119,645 - - 176,561 - - 176,561 Debt service - for subsequent year's expenditures - - 100,000 - - 100,000 - - 200,000 - - 200,000 Capital projects - - - 3,661,911 - 3,661,911 - - - 3,588,085 - 3,588,085 Parklands - - - - 759,087 759,087 - - - - 749,438 749,438 Trusts - - - - - - - - Total Restricted 1,919,180 6,664 219,645 3,661,911 759,215 6,566,615 1,922,436 6,664 376,561 3,588,085 749,566 6,643,312 Assigned: Purchases on order: General government support 153,045 - - - - 153,045 60,046 - - - - 60,046 Public safety 49,378 - - - - 49,378 60,998 - - - - 60,998 Health - - - - 3,458 - - - - 3,458 Transportation 31,150 - - - - 31,150 31,975 - - - - 31,975 Culture and recreation 16,167 - - - - 16,167 15,559 - - - - 15,559 Home and community services 12,427 50,628 - - 2,465 65,520 42,991 - - - 1,406 44,397 Employee benefits - - - - - - - - - - - - 262,687 50,628 - - 2,465 315,780 215,027 - - - 1,406 216,433 Subsequent year's expenditures 1,629,000 - - - - 1,629,000 285,000 - - - - 285,000 Future retirement expenditures 311,376 - - - - 311,376 311,376 - - - - 311,376 Water Fund - 181,911 - - - 181,911 - - - - - - Sewer Fund - - - - 419,817 419,817 - - - - 173,171 173,171 Total Assigned 2,203,063 232,539 - - 422,282 2,857,884 811,403 - - - 174,577 985,980 Unassigned 3,807,378 - - - - 3,807,378 5,793,691 (149,374) - - - 5,644,317 Total Fund Balances (Deficits) $ 7,929,838 $ 239,203 $ 219,645 $ 3,661,911 $ 1,181,497 $ 13,232,094 $ 8,533,379 $ (142,710) $ 376,561 $ 3,588,085 $ 924,143 $ 13,279,458 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, 2021 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 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, 2021, 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. 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 (Concluded) May 31, 2021 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 $5 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 - Recently Issued GASB Pronouncements GASB Statement No. 87, “Leases”, as amended by GASB Statement No. 95, “Postponement of the Effective Dates of Certain Authoritative Guidance”, establishes a single model for lease accounting based on the concept that leases are a financing of a “right-to-use” underlying asset. As such, this Statement requires a lessee to recognize a lease liability and an intangible right-to-use lease asset. A lessor will be required to recognize a lease receivable and a deferred inflow of resources. The requirements of this Statement are effective for reporting periods beginning after June 15, 2021. 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. ***** (This page intentionally left blank) Total OPEB Liability: Service cost $ 940,629 $ 762,647 $ 736,786 Interest 1,151,200 1,366,788 1,396,140 Changes of benefit terms - - - Differences between expected and actual experience 3,709,278 (2,051,120) - Changes of assumptions or other inputs 7,687,580 (5) 5,900,868 (4) 1,685,609 Benefit payments (1,252,949) (1,041,371) (1,102,051) Net Change in Total OPEB Liability 12,235,738 4,937,812 2,716,484 Total OPEB Liability – Beginning of Year 44,398,336 39,460,524 36,744,040 (3) Total OPEB Liability – End of Year $ 56,634,074 $ 44,398,336 $ 39,460,524 Village's covered-employee payroll $ 7,179,336 $ 8,820,034 $ 8,820,000 Total OPEB liability as a percentage of covered-employee payroll 789% 503% 447% 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. (5) Discount rate decreased from 2.63% in 2020 to 1.59% in 2021. (4) The discount rate used to calculate the Total OPEB liability was decreased from 3.51% to 2.63% effective with the May 31, 2020 measurement date. See independent auditors' report. Village's proportion of the net pension liability 0.0177371% 0.0197402% 0.0196808% 0.0206840% 0.0205204% 0.0200875% Village's proportionate share of the net pension liability $ 17,662 $ 5,227,312 $ 1,394,445 $ 667,565 $ 1,928,144 $ 3,224,099 Village's covered payroll $ 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 as a percentage of its covered payroll 0.37% 104.70% 26.95% 13.09% 37.68% 66.09% Plan fiduciary net position as a percentage of the total pension liability 99.95% 86.39% 96.27% 98.24% 94.70% 97.90% Contractually required contribution $ 755,833 $ 754,473 $ 757,401 $ 773,967 $ 742,631 $ 851,684 Contributions in relation to the contractually required contribution (755,833) (754,473) (757,401) (773,967) (742,631) (851,684) Contribution excess $ - $ - $ - $ - $ - $ - Village's covered payroll $ 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 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) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.0% effective with the March 31, 2016 measurement date. (4) The discount rate used to calculate the total pension liability was decreased from 7.0% to 6.8% effective with the March 31, 2020 measurement date. (5) 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) 2016 (3) 2020 (4)(5) (6) 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, partially offset by a decrease in the discount rate from 6.8% to 5.9% effective with the March 31, 2021 measurement date. Schedule of Contributions Schedule of the Village's Proportionate Share of the Net Pension Liability (2) 2021 (6) See independent auditors' report. Village's proportion of the net pension liability 0.0784524% 0.0814350% 0.0708670% 0.0777509% 0.0758163% 0.0798780% Village's proportionate share of the net pension liability $ 1,362,150 $ 4,352,650 $ 1,188,485 $ 785,873 $ 1,571,408 $ 2,365,019 Village's covered payroll $ 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 48.63% 144.73% 41.70% 28.15% 53.75% 82.68% Plan fiduciary net position as a percentage of the total pension liability 95.79% 84.86% 95.09% 96.93% 93.50% 90.20% Contractually required contribution $ 716,842 $ 661,366 $ 649,105 $ 703,784 $ 675,384 $ 627,862 Contributions in relation to the contractually required contribution (716,842) (661,366) (649,105) (703,784) (675,384) (627,862) Contribution excess $ - $ - $ - $ - $ - $ - Village's covered payroll $ 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 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) The discount rate used to calculate the total pension liability was decreased from 7.5% to 7.0% effective with the March 2016 measurement date. (4) The discount rate used to calculate the total pension liability was decreased from 7.0% to 6.8% effective with the March 2020 measurement date. (5) 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 (4)(5) (6) 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, partially offset by a decrease in the discount rate from 6.8% to 5.9% effective with the March 31, 2021 measurement date. Schedule of Contributions Schedule of the Village's Proportionate Share of the Net Pension Liability (2) 2016 (3) 2021 (6) See independent auditors' report. Total Pension Liability Service Cost 73,174 $ 67,846 $ 79,926 $ 71,769 $ Interest 65,473 67,746 60,698 61,926 Changes of assumptions or other inputs 467,429 105,130 (132,769) 146,667 Differences between expected and actual experience 47,825 (19,050) 5,233 17,665 Benefit payments (95,422) (64,100) (57,280) (51,740) Net Change in total pension liability 558,479 157,572 (44,192) 246,287 Total pension liability – beginning 1,982,924 $ 1,825,352 1,869,544 1,623,257 Total pension liability – ending 2,541,403 $ 1,982,924 $ 1,825,352 $ 1,869,544 $ Covered payroll N/A N/A N/A N/A Total pension liability as a percentage of covered payrol 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 and was as follows: December 31, 2017: 3.16% December 31, 2018: 3.64% December 31, 2019: 3.26% December 31, 2020: 1.93% 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, 2021 (With Comparative Actuals for 2020) ASSETS Cash and equivalents $ 7,506,529 $ 245,368 $ 7,751,897 $ 8,101,116 Investments - 1,217,905 1,217,905 1,293,907 Taxes receivable Village taxes 1,422 - 1,422 227,526 Property acquired for taxes 32,185 - 32,185 - 33,607 - 33,607 227,526 Allowance for uncollectible taxes (33,354) - (33,354) (182,077) - 45,449 Other receivables Accounts 60,032 3,500 63,532 134,244 State and Federal aid - - - 25,296 Due from other governments 401,050 - 401,050 258,103 Due from other funds 642,849 - 642,849 674,157 1,103,931 3,500 1,107,431 1,091,800 Prepaid expenditures - 5,849 Total Assets $ 8,610,930 $ 1,466,773 $ 10,077,703 $ 10,538,121 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES Liabilities Accounts payable $ 391,440 $ - $ 391,440 $ 444,511 Accrued liabilities 548,207 - 548,207 432,167 Deposits payable 524,559 - 524,559 410,177 Employee payroll deductions 12,102 - 12,102 12,195 Due to other funds 94,746 - 94,746 76,294 Due to other governments - - - 14,840 Unearned revenues 576,519 - 576,519 569,039 Total Liabilities 2,147,573 - 2,147,573 1,959,223 Deferred inflows of resources Deferred tax revenues - 45,519 Total Liabilities and Deferred Inflows of Resources 2,147,865 - 2,147,865 2,004,742 Fund balances Nonspendable - 5,849 Restricted 452,407 1,466,773 1,919,180 1,922,436 Assigned 2,203,063 - 2,203,063 811,403 Unassigned 3,807,378 - 3,807,378 5,793,691 Total Fund Balances 6,463,065 1,466,773 7,929,838 8,533,379 Total Liabilities, Deferred Inflows of Resources and Fund Balances $ 8,610,930 $ 1,466,773 $ 10,077,703 10,538,121 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, 2021 (With Comparative Actuals for 2020) REVENUES Real property taxes $ 12,131,047 $ - $ - $ 12,131,047 $ 11,642,590 Other tax items 139,614 - - 139,614 31,663 Non-property taxes 2,083,831 - - 2,083,831 1,832,635 Departmental income 1,909,538 114,879 (114,879) 1,909,538 4,419,424 Net change in fair value of investments - 88,152 - 88,152 106,740 Use of money and property 208,543 20,497 - 229,040 275,857 Licenses and permits 209,585 - - 209,585 239,135 Fines and forfeitures 140,520 - - 140,520 294,688 Sale of property and compensation for loss 226,763 - - 226,763 88,691 State aid 264,333 - - 264,333 213,904 Federal aid 44,377 - - 44,377 76,663 Miscellaneous 52,262 - - 52,262 46,982 Total Revenues 17,410,413 223,528 (114,879) 17,519,062 19,268,972 EXPENDITURES Current General government support 3,220,444 - - 3,220,444 3,232,112 Public safety 3,931,023 97,102 - 4,028,125 4,009,644 Health 431,761 - - 431,761 461,945 Transportation 2,125,401 - - 2,125,401 2,025,960 Economic opportunity and development 30,992 - - 30,992 45,666 Culture and recreation 490,203 - - 490,203 823,201 Home and community services 991,539 - - 991,539 954,144 Employee benefits 4,734,630 - (114,879) 4,619,751 4,508,038 Debt Service Interest 11,023 - - 11,023 17,720 Total Expenditures 15,967,016 97,102 (114,879) 15,949,239 16,078,430 Excess of Revenues Over Expenditures 1,443,397 126,426 - 1,569,823 3,190,542 OTHER FINANCING SOURCES (USES) Insurance recoveries 59,723 - - 59,723 22,339 Transfers in 478,614 - - 478,614 440,019 Transfers out (2,711,701) - - (2,711,701) (3,092,087) Total Other Financing Uses (2,173,364) - - (2,173,364) (2,629,729) Net Change in Fund Balances (729,967) 126,426 - (603,541) 560,813 FUND BALANCES Beginning of Year 7,193,032 1,340,347 - 8,533,379 7,972,566 End of Year $ 6,463,065 $ 1,466,773 $ - $ 7,929,838 $ 8,533,379 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 $ 7,506,529 $ 8,057,013 Taxes receivable Village taxes 1,422 227,526 Property acquired for taxes 32,185 - 33,607 227,526 Allowance for uncollectible taxes (33,354) (182,077) 45,449 Other receivables Accounts 60,032 131,907 State and Federal aid - 25,296 Due from other governments 401,050 258,103 Due from other funds 642,849 674,157 1,103,931 1,089,463 Prepaid expenditures 5,849 Total Assets $ 8,610,930 $ 9,197,774 LIABILITIES, DEFERRED INFLOWS OF RESOURCES AND FUND BALANCE Liabilities Accounts payable $ 391,440 $ 444,511 Accrued liabilities 548,207 432,167 Deposits payable 524,559 410,177 Employee payroll deductions 12,102 12,195 Due to other funds 94,746 76,294 Due to other governments - 14,840 Unearned revenues 576,519 569,039 Total Liabilities 2,147,573 1,959,223 Deferred inflows of resources Deferred tax revenues 45,519 Total Liabilities and Deferred Inflows of Resources 2,147,865 2,004,742 Fund balance Nonspendable 5,849 Restricted 452,407 582,089 Assigned 2,203,063 811,403 Unassigned 3,807,378 5,793,691 Total Fund Balance 6,463,065 7,193,032 Total Liabilities, Deferred Inflows of Resources and Fund Balance $ 8,610,930 $ 9,197,774 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 $ 11,937,833 $ 11,937,833 $ 12,131,047 $ 193,214 Other tax items 35,001 35,001 139,614 104,613 Non-property taxes 1,262,000 1,262,000 2,083,831 821,831 Departmental income 4,345,846 3,852,522 1,909,538 (1,942,984) Use of money and property 210,375 168,373 208,543 40,170 Licenses and permits 177,000 177,000 209,585 32,585 Fines and forfeitures 350,000 329,220 140,520 (188,700) Sale of property and compensation for loss 19,000 114,001 226,763 112,762 State aid 157,000 163,559 264,333 100,774 Federal aid - 32,374 44,377 12,003 Miscellaneous 45,347 45,347 52,262 6,915 Total Revenues 18,539,402 18,117,230 17,410,413 (706,817) EXPENDITURES Current General government support 3,612,076 3,532,297 3,220,444 311,853 Public safety 3,947,005 4,049,419 3,931,023 118,396 Health 421,035 449,635 431,761 17,874 Transportation 2,843,518 2,241,908 2,125,401 116,507 Economic opportunity and development 48,922 41,676 30,992 10,684 Culture and recreation 797,317 571,253 490,203 81,050 Home and community services 474,388 1,059,807 991,539 68,268 Employee benefits 4,754,551 4,704,302 4,734,630 (30,328) Debt service Interest 11,024 11,024 11,023 Total Expenditures 16,909,836 16,661,321 15,967,016 694,305 Excess of Revenues Over Expenditures 1,629,566 1,455,909 1,443,397 (12,512) OTHER FINANCING SOURCES (USES) Insurance recoveries - 43,214 59,723 16,509 Transfers in 475,000 475,000 478,614 3,614 Transfers out (2,604,593) (2,711,704) (2,711,701) Total Other Financing Uses (2,129,593) (2,193,490) (2,173,364) 20,126 Net Change in Fund Balance (500,027) (737,581) (729,967) 7,614 FUND BALANCE Beginning of Year 500,027 737,581 7,193,032 6,455,451 End of Year $ - $ - $ 6,463,065 $ 6,463,065 See independent auditors' report. Original Final Variance with Budget Budget Actual Final Budget $ 11,664,847 $ 11,664,847 $ 11,642,590 $ (22,257) 35,001 35,001 31,663 (3,338) 1,517,000 1,617,000 1,832,635 215,635 4,655,085 4,768,433 4,419,424 (349,009) 193,375 193,375 244,845 51,470 169,000 173,898 239,135 65,237 310,000 310,000 294,688 (15,312) 16,000 16,000 88,691 72,691 202,347 202,347 213,904 11,557 - 76,663 76,663 - - - 46,982 46,982 18,762,655 19,057,564 19,131,220 73,656 3,630,950 3,422,343 3,232,112 190,231 3,945,130 4,160,867 3,948,464 212,403 421,968 495,054 461,945 33,109 2,843,988 2,323,687 2,025,960 297,727 49,608 49,758 45,666 4,092 867,513 896,096 823,201 72,895 502,335 1,070,379 954,144 116,235 4,961,335 4,991,531 4,622,659 368,872 17,720 17,721 17,720 17,240,547 17,427,436 16,131,871 1,295,565 1,522,108 1,630,128 2,999,349 1,369,221 - 21,392 22,339 540,000 440,000 440,019 (2,386,017) (3,092,087) (3,092,087) - (1,846,017) (2,630,695) (2,629,729) (323,909) (1,000,567) 369,620 1,370,187 323,909 1,000,567 6,823,412 5,822,845 $ - $ - $ 7,193,032 $ 7,193,032 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, 2021 (With Comparative Actuals for 2020) Original Final Variance with Budget Budget Actual Final Budget Actual REAL PROPERTY TAXES $ 11,937,833 $ 11,937,833 $ 12,131,047 $ 193,214 $ 11,642,590 OTHER TAX ITEMS Interest and penalties on real property taxes 35,001 35,001 139,614 104,613 31,663 NON-PROPERTY TAXES Non-property tax distribution from County 1,000,000 1,000,000 1,849,167 849,167 1,571,177 Franchise fees 150,000 150,000 109,116 (40,884) 146,552 Utilities gross receipts taxes 112,000 112,000 125,548 13,548 114,906 1,262,000 1,262,000 2,083,831 821,831 1,832,635 DEPARTMENTAL INCOME Garbage removal 65,000 65,000 58,080 (6,920) 59,035 Parks and recreation charges 304,000 57,415 68,906 11,491 278,701 Ambulance service 291,043 291,043 307,133 16,090 291,651 Planning Board fees 5,000 5,000 9,875 4,875 5,425 Zoning fees 5,000 5,000 9,300 4,300 4,525 Fire protection services for other governments 278,028 278,028 278,028 - 274,613 Parking permits 3,376,000 3,074,579 1,095,734 (1,978,845) 3,408,215 Other 21,775 76,457 82,482 6,025 97,259 4,345,846 3,852,522 1,909,538 (1,942,984) 4,419,424 USE OF MONEY AND PROPERTY Earnings on investments 50,000 7,998 2,815 (5,183) 60,606 Rental of real property 160,375 160,375 205,728 45,353 184,239 210,375 168,373 208,543 40,170 244,845 LICENSES AND PERMITS Business and occupational licenses 8,000 8,000 12,530 4,530 9,340 Building permits 100,000 100,000 101,029 1,029 139,330 Dog license apportionment 5,000 5,000 5,908 4,921 Permit fees 64,000 64,000 90,118 26,118 85,544 177,000 177,000 209,585 32,585 239,135 FINES AND FORFEITURES Fines and forfeited bail 350,000 329,220 140,520 (188,700) 294,688 SALE OF PROPERTY AND COMPENSATION FOR LOSS Sale of equipment 2,000 97,000 173,058 76,058 4,638 Minor sales 17,000 17,001 26,985 9,984 18,361 Other - - 26,720 26,720 65,692 . 19,000 114,001 226,763 112,762 88,691 STATE AID Mortgage tax 120,000 120,000 200,816 80,816 165,828 Youth programs - - 29,043 29,043 2,934 Snow and ice reimbursement 37,000 37,000 16,678 (20,322) 42,953 Other - 6,559 17,796 11,237 2,189 157,000 163,559 264,333 100,774 213,904 (Continued) (This page intentionally left blank) Village of Croton-on-Hudson, New York General Fund - Sub-Fund Schedule of Revenues Compared to Budget (Continued) Year Ended May 31, 2021 (With Comparative Actuals for 2020) Original Final Budget Budget Actual Final Budget Actual FEDERAL AID Public health $ - $ 32,374 $ 32,374 $ - $ 76,663 Emergency management assistance - - 12,003 12,003 - - 32,374 44,377 12,003 76,663 MISCELLANEOUS AIM related payments 45,347 45,347 45,347 - 45,347 Refund of prior year's expenditures - - 6,899 6,899 1,221 Gifts and donations - - 45,347 45,347 52,262 6,915 46,982 TOTAL REVENUES 18,539,402 18,117,230 17,410,413 (706,817) 19,131,220 OTHER FINANCING SOURCES Insurance recoveries - 43,214 59,723 16,509 22,339 Transfers in Water Fund 275,000 275,000 275,000 - 370,000 Capital Projects Fund - - 3,614 3,614 Debt Service Fund 200,000 200,000 200,000 - 70,000 TOTAL OTHER FINANCING SOURCES 475,000 518,214 538,337 20,123 462,358 TOTAL REVENUES AND OTHER FINANCING SOURCES $ 19,014,402 $ 18,635,444 $ 17,948,750 $ (686,694) $ 19,593,578 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, 2021 (With Comparative Actuals for 2020) Original Final Variance with Budget Budget Actual Final Budget Actual GENERAL GOVERNMENT SUPPORT Board of Trustees $ 25,025 $ 23,103 $ 20,066 $ 3,037 $ 23,583 Justice 288,646 296,659 279,099 17,560 257,669 Mayor 6,600 6,600 5,267 1,333 5,831 Clerk - Treasurer 384,786 392,335 385,020 7,315 380,680 Assessment 31,740 18,626 17,519 1,107 23,556 Manager 271,317 292,738 289,821 2,917 253,953 Data processing 274,957 271,541 249,522 22,019 276,908 Law 161,151 171,616 170,740 164,598 Engineer 527,377 505,854 490,078 15,776 510,430 Operation of plant and buildings 121,276 191,385 175,311 16,074 194,231 Auditor 41,036 41,036 36,024 5,012 36,266 Central garage 580,341 567,857 452,993 114,864 486,280 Central communications 264,494 244,511 237,788 6,723 234,977 Unallocated insurance 319,414 349,282 349,282 - 320,066 Municipal association dues 6,482 6,777 6,777 - 8,977 Refunds of real property taxes 50,000 94,552 93,804 Taxes and assessments on property 28,990 28,990 25,914 3,076 25,437 Tax advertising - - Metropolitan transportation authority commuter mobility tax 28,094 28,094 27,734 28,074 Contingent account 200,000 - - - - 3,612,076 3,532,297 3,220,444 311,853 3,232,112 PUBLIC SAFETY Police 3,389,041 3,508,677 3,447,492 61,185 3,418,540 Jail - - Fire Department 528,387 504,851 457,178 47,673 501,219 Control of animals 7,600 7,600 1,385 6,215 2,255 Traffic control 21,477 27,791 24,968 2,823 26,450 3,947,005 4,049,419 3,931,023 118,396 3,948,464 HEALTH Registrar of Vital Statistics 5,400 5,400 5,155 4,580 Public health 3,072 34,044 30,972 3,072 73,086 Ambulance 412,563 410,191 395,634 14,557 384,279 421,035 449,635 431,761 17,874 461,945 TRANSPORTATION Street maintenance and administration 2,220,263 1,477,895 1,439,740 38,155 1,499,492 Snow removal 222,666 353,239 299,483 53,756 150,677 Street lighting 8,950 10,659 6,021 4,638 13,084 Off-street parking 369,139 325,568 308,632 16,936 331,744 Brush and weeds 22,500 74,547 71,525 3,022 30,963 2,843,518 2,241,908 2,125,401 116,507 2,025,960 ECONOMIC OPPORTUNITY AND DEVELOPMENT Publicity 48,922 41,676 30,992 10,684 45,666 CULTURE AND RECREATION Parks, playgrounds and recreation 579,062 520,084 471,258 48,826 609,237 Youth programs 129,100 11,200 2,595 8,605 117,064 Historian 5,000 5,000 1,152 3,848 4,630 Celebrations 11,215 4,520 1,876 2,644 38,954 Community center 2,618 Senior citizens programs 72,580 29,742 12,649 17,093 50,698 797,317 571,253 490,203 81,050 823,201 (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, 2021 (With Comparative Actuals for 2020) Original Final Variance with Budget Budget Actual Final Budget Actual HOME AND COMMUNITY SERVICES Zoning $ 3,701 $ 3,701 $ 3,051 $ $ 2,641 Planning 29,506 29,509 11,121 18,388 15,925 Recycling program 160,000 434,655 419,942 14,713 428,846 Sanitary and storm sewers 27,230 54,496 43,371 11,125 45,553 Refuse and garbage 159,533 377,331 373,804 3,527 316,490 Street cleaning 8,500 21,622 20,839 18,383 Shade trees 54,565 98,774 91,169 7,605 69,878 Community beautification 20,975 14,975 9,159 5,816 19,682 Other 10,378 24,744 19,083 5,661 36,746 474,388 1,059,807 991,539 68,268 954,144 EMPLOYEE BENEFITS State retirement 602,053 602,195 717,067 (114,872) 583,360 State retirement - Police and Fire 645,672 645,672 758,360 (112,688) 645,672 Service award program 114,879 114,879 114,879 - 114,621 Social security 489,281 490,461 450,831 39,630 459,802 Workers' compensation benefits 313,485 261,551 253,093 8,458 313,487 Life insurance 8,692 8,692 8,271 8,557 Health insurance 2,224,074 2,224,074 2,103,561 120,513 2,169,511 Dental insurance 108,743 103,263 101,482 1,781 102,762 Medicare reimbursement 222,925 228,768 227,086 1,682 220,012 Unemployment benefits 24,747 24,747 - 24,747 4,875 4,754,551 4,704,302 4,734,630 (30,328) 4,622,659 DEBT SERVICE Interest Bond anticipation notes 11,024 11,024 11,023 17,720 TOTAL EXPENDITURES 16,909,836 16,661,321 15,967,016 694,305 16,131,871 OTHER FINANCING USES Transfers out Capital Projects Fund 218,536 325,647 325,644 907,442 Debt Service Fund 2,386,057 2,386,057 2,386,057 - 2,184,645 TOTAL OTHER FINANCING USES 2,604,593 2,711,704 2,711,701 3,092,087 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 19,514,429 $ 19,373,025 $ 18,678,717 $ 694,308 $ 19,223,958 See independent auditors' report. (This page intentionally left blank) Village of Croton-on-Hudson, New York Water Fund Comparative Balance Sheet May 31, Cash and equivalents $ 273,088 $ 64,820 Receivables Water rents 699,089 657,511 Due from other funds 8,475 7,637 707,564 665,148 Total Assets $ 980,652 $ 729,968 Liabilities Accounts payable $ 24,311 $ 26,566 Accrued liabilities 25,088 27,336 Due to other funds 692,050 818,776 Total Liabilities 741,449 872,678 Fund balance (deficit) Restricted 6,664 6,664 Assigned 232,539 - Unassigned - (149,374) Total Fund Balance (Deficit) 239,203 (142,710) Total Liabilities and Fund Balance (Deficit) $ 980,652 $ 729,968 ASSETS LIABILITIES AND FUND BALANCE (DEFICIT) 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 $ 2,733,013 $ 2,721,328 $ 3,001,702 $ 280,374 Use of money and property 5,000 5,000 (4,899) Total Revenues 2,738,013 2,726,328 3,001,803 275,475 EXPENDITURES Current General government support 398,990 296,937 280,618 16,319 Home and community services 793,020 830,020 721,288 108,732 Employee benefits 297,174 350,489 313,881 36,608 Total Expenditures 1,489,184 1,477,446 1,315,787 161,659 Excess of Revenues Over Expenditures 1,248,829 1,248,882 1,686,016 437,134 OTHER FINANCING USES Transfers out (1,304,103) (1,304,103) (1,304,103) - Net Change in Fund Balance (55,274) (55,221) 381,913 437,134 FUND BALANCE (DEFICIT) Beginning of Year 55,274 55,221 (142,710) (197,931) End of Year $ - $ - $ 239,203 $ 239,203 See independent auditors' report. Budget Budget Actual Original Final Variance with Final Budget $ 2,903,448 $ 2,803,448 $ 2,598,378 $ (205,070) 6,000 6,000 2,892 (3,108) 2,909,448 2,809,448 2,601,270 (208,178) 392,462 302,962 261,918 41,044 761,882 776,982 689,275 87,707 322,383 396,783 302,259 94,524 1,476,727 1,476,727 1,253,452 223,275 1,432,721 1,332,721 1,347,818 15,097 (1,460,944) (1,360,944) (1,360,944) - (28,223) (28,223) (13,126) 15,097 28,223 28,223 (129,584) (157,807) $ - $ - $ (142,710) $ (142,710) Budget Actual Budget (This page intentionally left blank) Village of Croton-on-Hudson, New York Water Fund Schedule of Revenues Compared to Budget Year Ended May 31, 2021 (With Comparative Actuals for 2020) Original Final Variance with Budget Budget Actual Final Budget Actual DEPARTMENTAL INCOME Metered water sales $ 2,708,013 $ 2,696,328 $ 2,963,152 $ 266,824 $ 2,564,152 Interest and penalties on water rents 25,000 25,000 38,550 13,550 34,226 2,733,013 2,721,328 3,001,702 280,374 2,598,378 USE OF MONEY AND PROPERTY Earnings on investments 5,000 5,000 (4,899) 2,892 TOTAL REVENUES $ 2,738,013 $ 2,726,328 $ 3,001,803 $ 275,475 $ 2,601,270 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, 2021 (With Comparative Actuals for 2020) Original Final Variance with Budget Budget Actual Final Budget Actual GENERAL GOVERNMENT SUPPORT Central communications $ 158,330 $ 174,277 $ 161,492 $ 12,785 $ 149,495 Auditor 9,233 9,233 8,105 1,128 7,546 Unallocated insurance 96,983 103,983 103,277 99,050 Taxes and assessments on property 9,444 9,444 7,744 1,700 5,827 Contingent account 125,000 - - - - 398,990 296,937 280,618 16,319 261,918 HOME AND COMMUNITY SERVICES Water administration 97,441 111,441 88,956 22,485 79,536 Pumping, supply and power 197,588 213,587 191,224 22,363 171,947 Transmission and distribution 497,991 504,992 441,108 63,884 437,792 793,020 830,020 721,288 108,732 689,275 EMPLOYEE BENEFITS State retirement 61,136 71,136 65,309 5,827 79,533 Social security 29,001 36,001 30,109 5,892 29,424 Workers' compensation benefits 70,534 58,849 56,946 1,903 70,534 Life insurance - Health and dental insurance 129,223 170,223 153,821 16,402 115,125 Medicare reimbursement 6,781 13,781 7,197 6,584 7,165 297,174 350,489 313,881 36,608 302,259 TOTAL EXPENDITURES 1,489,184 1,477,446 1,315,787 161,659 1,253,452 OTHER FINANCING USES Transfers out General Fund 275,000 275,000 275,000 - 370,000 Debt Service Fund 1,029,103 1,029,103 1,029,103 - 990,944 TOTAL OTHER FINANCING USES 1,304,103 1,304,103 1,304,103 - 1,360,944 TOTAL EXPENDITURES AND OTHER FINANCING USES $ 2,793,287 $ 2,781,549 $ 2,619,890 $ 161,659 $ 2,614,396 See independent auditors' report. (This page intentionally left blank) Village of Croton-on-Hudson, New York Debt Service Fund Comparative Balance Sheet May 31, ASSETS Cash and equivalents $ 251,132 $ 93,682 Due from other funds 31,746 282,879 Total Assets $ 282,878 $ 376,561 LIABILITIES AND FUND BALANCE Liabilities Due to other funds $ 63,233 $ - Fund balance Restricted 219,645 376,561 Total Liabilities and Fund Balance $ 282,878 $ 376,561 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 $ - $ - $ 28,624 $ 28,624 Miscellaneous - - - - 28,633 28,633 EXPENDITURES Debt service Principal Serial bonds 2,190,400 2,190,400 2,190,400 - Installment purchase debt 202,661 202,661 202,661 - 2,393,061 2,393,061 2,393,061 - Interest Serial bonds 1,078,152 1,078,152 1,078,151 Installment purchase debt 50,270 50,270 50,270 - 1,128,422 1,128,422 1,128,421 Total Expenditures 3,521,483 3,521,483 3,521,482 Deficiency of Revenues Over Expenditures (3,521,483) (3,521,483) (3,492,849) 28,634 OTHER FINANCING SOURCES (USES) Transfers in 3,521,483 3,521,483 3,535,933 14,450 Transfers out (200,000) (200,000) (200,000) - Total Other Financing Sources 3,321,483 3,321,483 3,335,933 14,450 Net Change in Fund Balance (200,000) (200,000) (156,916) 43,084 FUND BALANCE Beginning of Year 200,000 200,000 376,561 176,561 End of Year $ - $ - $ 219,645 $ 219,645 See independent auditors' report. Original Final Variance with Budget Budget Actual Final Budget $ - $ - $ 138,095 $ 138,095 - - 6,373 6,373 - - 144,468 144,468 1,955,000 1,955,000 1,955,000 - 191,027 191,027 191,027 - 2,146,027 2,146,027 2,146,027 - 1,075,666 1,075,666 1,075,666 - 61,904 61,904 61,904 - 1,137,570 1,137,570 1,137,570 - 3,283,597 3,283,597 3,283,597 - (3,283,597) (3,283,597) (3,139,129) 144,468 3,283,597 3,283,597 3,286,217 2,620 (70,000) (70,000) (70,000) - 3,213,597 3,213,597 3,216,217 2,620 (70,000) (70,000) 77,088 147,088 70,000 70,000 299,473 229,473 $ - $ - $ 376,561 $ 376,561 Village of Croton-on-Hudson, New York Capital Projects Fund Comparative Balance Sheet May 31, Cash and equivalents $ 3,644,172 $ 4,586,390 Receivables Accounts 1,500 1,500 State and Federal aid 547,135 180,830 Due from other funds 65,507 19,837 614,142 202,167 Total Assets $ 4,258,314 $ 4,788,557 Liabilities Accounts payable $ 216,280 $ 628,863 Bond anticipation notes payable 334,155 552,689 Due to other funds 45,968 18,920 Total Liabilities 596,403 1,200,472 Fund balance Restricted 3,661,911 3,588,085 Total Liabilities and Fund Balance $ 4,258,314 $ 4,788,557 ASSETS LIABILITIES AND FUND BALANCE See independent auditors' report. Village of Croton-on-Hudson, New York Capital Projects Fund Comparative Statement of Revenues, Expenditures and Changes in Fund Balance Years Ended May 31, REVENUES State aid $ 1,431,861 $ 281,840 Federal aid 803,172 152,616 Miscellaneous 400,762 17,550 Total Revenues 2,635,795 452,006 EXPENDITURES Capital outlay 5,479,539 4,079,288 Deficiency of Revenues Over Expenditures (2,843,744) (3,627,282) OTHER FINANCING SOURCES (USES) Bonds issued 2,609,990 3,335,400 Transfers in 325,644 907,442 Transfers out (18,064) (2,639) Total Other Financing Sources 2,917,570 4,240,203 Net Change in Fund Balance 73,826 612,921 FUND BALANCE Beginning of Year 3,588,085 2,975,164 End of Year $ 3,661,911 $ 3,588,085 See independent auditors' report. Village of Croton-on-Hudson, New York Capital Projects Fund Project-Length Schedule Inception of Project Through May 31, 2021 . Project and Transfers Unexpended PROJECT Number Appropriation to Date Balance Grand Street Fire Apron $ 744,600 $ 640,789 $ 103,811 South Riverside 500,000 500,000 - Nordica Sewer Pump Station 739,500 356,468 383,032 Harmon Firehouse HVAC System Overhaul 20,000 16,219 3,781 Police Headquarters Renovation 2,135,700 1,753,643 382,057 Municipal Building Window Replacement 174,700 166,797 7,903 TEP Grant - Bicycle Ped Improvement 3,909,135 3,371,425 537,710 Half Moon Bay Bridge Rehabilitation 51,000 23,703 27,297 Sprinkler System - Harmon Fire House 61,200 4,339 56,861 Water Source and Well Field Improvement 1,146,300 1,141,355 4,945 Sprinkler System at the Washington Fire House 26,520 4,508 22,012 Security Camera Croton Landing 8,670 7,218 1,452 Sanitation Truck 267,600 264,854 2,746 Water Main Replacement - Water 867,000 859,859 7,141 Water Main Replacement and Extension 10,165,650 10,130,612 35,038 Half Moon Bay Bridge 510,000 15,953 494,047 Service Truck 76,500 72,646 3,854 Washington Engine Central A/C 25,500 23,406 2,094 Washington Engine Fire Generator 45,645 40,793 4,852 Grand Street Upgrades 46,614 41,023 5,591 Harmon Fire Windows 51,000 14,970 36,030 Computers and Software Upgrade 25,500 18,555 6,945 LED Lights 51,000 44,890 6,110 Shed 20,400 20,200 Low Boy Dump Truck 107,100 102,382 4,718 Sunset Park/Placeground Equipment and Surface 188,700 175,226 13,474 Sidewalks and Curbs 227,000 199,062 27,938 DPW Vehicles 2016/17 130,152 130,087 Records Management Software 23,000 22,823 DPW Vehicles 2017/18 73,440 71,639 1,801 Engineers Vehicle 32,640 30,881 1,759 WEFH Renovations 254,000 218,545 35,455 Renovation of New Building 846,600 696,495 150,105 Police Vehicle 39,780 38,183 1,597 LPR System Police Department 20,400 20,256 DPW Equipment 40,800 40,894 (94) NYSERDA LED Lighting 50,000 42,046 7,954 Sidewalks and Curbs General Road 102,000 103,867 (1,867) DPW Equipment 437,400 332,840 104,560 Demolition of Existing DPW FAC 509,000 483,826 25,174 Expenditures $ 744,600 $ 103,811 $ - 482,530 (17,470) - 739,500 383,032 - 20,000 3,781 - 2,135,700 382,057 - 174,700 7,903 - 3,820,523 449,098 - 51,000 27,297 - 61,200 56,861 - 1,146,300 4,945 - 26,520 22,012 - 8,670 1,452 - 267,600 2,746 - 867,000 7,141 - 10,165,650 35,038 - 510,000 494,047 - 76,500 3,854 - 25,500 2,094 - 45,645 4,852 - 46,615 5,592 - 51,000 36,030 - 25,500 6,945 - 51,000 6,110 - 20,400 20,200 - 107,100 4,718 - 188,700 13,474 - 227,000 27,938 - 104,120 (25,967) 26,032 18,768 (4,055) 4,692 57,120 (14,519) 16,320 32,640 1,759 - 254,000 35,455 - 846,600 150,105 - 39,780 1,597 - 12,240 (8,016) 8,160 24,480 (16,414) 16,320 50,000 7,954 - 26,147 (77,720) 75,853 250,622 (82,218) 186,778 509,000 25,174 - Bond Anticipation Notes Out- standing at Fund Balance (Deficit) at May 31, Total Revenues May 31, 2021 (Continued) Village of Croton-on-Hudson, New York Capital Projects Fund Project-Length Schedule (Continued) Inception of Project Through May 31, 2021 Project and Transfers Unexpended PROJECT Number Appropriation to Date Balance Engineering Design of Croton Harmon Station Parking Lot $ 977,800 $ 876,610 $ 101,190 Police Replacement Vehicle 48,000 46,145 1,855 Relocation Water Department Offices 100,000 63,612 36,388 Triple Combination Pumper 795,600 16,798 778,802 Parking Charging Stations 34,535 27,564 6,971 Sidewalks & Curbs 317,686 239,323 78,363 6 wheel dump truck spreader 510,000 496,952 13,048 SCBA replacement plan 90,000 - 90,000 Command car replacement 75,000 69,710 5,290 Police electric hybrid vehicle 58,000 2,377 55,623 NYS RICI live scan system 25,300 23,000 2,300 Solar power 25,233 - 25,233 E [...truncated...]