Chat with us, powered by LiveChat CAFR: Reports and Presentations CAFR Report -Must be state or local entity -Show the mission statement and identify if t - School Writers

CAFR: Reports and Presentations CAFR Report  -Must be state or local entity -Show the mission statement and identify if t

 

CAFR: Reports and Presentations

CAFR Report 

-Must be state or local entity

-Show the mission statement and identify if the mission is accomplished

-Show efficiency

-Compare prior year to current year

-Single spaced

-Three to four pages of content – not including required cover page and page for references

-Proper grammar and spelling

-Including headings

-Include visualizations/graphics

-Page Numbers

-Including headings

CAFR Presentation 

-(Exactly) Six slides-Must include one cover page, one page for references-Not more than four bullet points per slide-Should use proper grammar and style-Should describe similar content as in the CAFR paper-Must have graphs/charts or other visual methods to tell information about the state/local/tribal entity 

 https://www.cincinnati-oh.gov/finance/financial-reports/2020-comprehensive-annual-financial-report/

for the fiscal year ended June 30, 2020

COMPREHENSIVE ANNUAL FINANCIAL REPORT

2020 CINCINNATI, OHIO

(This page intentionally left blank.)

2020 CINCINNATI, OHIO

Director of Finance:

Karen Alder

Assistant Director of Finance:

Monica Morton

Finance Manager:

Mark Ashworth

for the fiscal year ended June 30, 2020

COMPREHENSIVE ANNUAL FINANCIAL REPORT

(This page intentionally left blank.)

INTRODUCTORY SECTION

(This page intentionally left blank.)

CITY OF CINCINNATI, OHIO COMPREHENSIVE ANNUAL FINANCIAL REPORT For the fiscal year ended June 30, 2020 TABLE OF CONTENTS

INTRODUCTORY SECTION Page

Letter of Transmittal ………………………………………………………………………………………………………………………. 5 Certificate of Achievement ……………………………………………………………………………………………………………… 13 Principal City Officials ………………………………………………………………………………………………………………….. 15 Organization Chart ……………………………………………………………………………………………………………………….. 17

FINANCIAL SECTION Page

Report of Independent Auditors ………………………………………………………………………………………………………. 19 Management’s Discussion and Analysis ………………………………………………………………………………………….. 23 BASIC FINANCIAL STATEMENTS: Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position …………………………………………………………………………………………………. 39 Statement of Activities …………………………………………………………………………………………………….. 41 Fund Financial Statements: Balance Sheet – Governmental Funds ……………………………………………………………………………….. 42 Reconciliation of the Balance Sheet to the Statement of Net Position – Governmental Funds ……. 43 Statement of Revenues, Expenditures and Changes in Fund Balances – Governmental Funds ….. 44 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances to the Statement of Activities – Governmental Funds ……………………………………………………………… 45 Statement of Net Position – Proprietary Funds …………………………………………………………………… 47 Statement of Revenues, Expenses, and Changes in Fund Net Position – Proprietary Funds ………. 49 Statement of Cash Flows – Proprietary Funds …………………………………………………………………….. 50 Statement of Fiduciary Net Position – Fiduciary Funds ………………………………………………………… 52 Statement of Changes in Fiduciary Net Position – Fiduciary Funds ……………………………………….. 53 Notes to Financial Statements …………………………………………………………………………………………………. 55 Required Supplementary Information: Ohio Police and Fire Pension Fund – Net Pension Liability Schedules …………………………………………. 157 Ohio Public Employees Retirement System – Traditional Pension Plan – Net Pension Liability Schedules …………………………………………………………………………………………………………….. 158 Schedule of City’s Changes in Net Pension Liability and Related Ratios – Cincinnati Retirement System ……………………………………………………………………………………………… 159 Schedule of City’s Pension Contributions – Cincinnati Retirement System …………………………………… 160 Notes to the Required Pension Information ……………………………………………………………………………….. 161 Ohio Police and Fire Pension Fund – Net OPEB Liability Schedules……………………………………………. 164

1

TABLE OF CONTENTS (Continued)

FINANCIAL SECTION (Continued) Page

Ohio Public Employees Retirement System – Net OPEB Liability Schedules ……………………………….. 165 Schedule of City’s Changes in Net OPEB Liability and Related Ratios – Cincinnati Retirement System ……………………………………………………………………………………………… 166 Schedule of City’s OPEB Contributions – Cincinnati Retirement System …………………………………….. 167 Notes to the Required OPEB Information …………………………………………………………………………………. 168 Cincinnati Retirement System – Schedule of Changes in Net Pension Liability and Related Ratios …. 172 Cincinnati Retirement System – Schedule of Employer Contributions ………………………………………….. 173 Cincinnati Retirement System – Notes to the Required Pension Information …………………………………. 174 Cincinnati Retirement System – Schedule of Changes in Total OPEB Liability and Related Ratios ….. 175 Cincinnati Retirement System – Schedule of Employer Contributions – OPEB ……………………………… 176 Cincinnati Retirement System – Notes to the Required OPEB Information …………………………………… 177 Budgetary Comparison Schedule – General Fund ………………………………………………………………………. 179 Budgetary Comparison Schedule – Health District Fund …………………………………………………………….. 180 Note to the Required Supplementary Information – Budgetary Data …………………………………………….. 181 Supplementary Information Major Governmental Funds: …………………………………………………………………………………………………… 185 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual – General Fund ………………………………………….. 187 Schedule of Revenues, Expenditures, and Changes in Fund Balance – General Fund ………………. 194 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual – Health District Fund ………………………………… 199 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual – Capital Projects Fund ………………………………. 201 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual – Debt Service Fund …………………………………… 203 Schedule of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) – and Actual – Tax Increment Financing Funds ………………… 204

Nonmajor Governmental Funds …………………………………………………………………………………………………. 205 Combining Balance Sheet – Nonmajor Governmental Funds …………………………………………………… 207 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds…………………………………………………………. 210 Schedules of Revenues, Expenditures and Changes in Fund Balance – Budget (Non-GAAP Budgetary Basis) and Actual Street Construction, Maintenance and Repair Fund …………………………………………………… 213 Income Tax Infrastructure Fund ……………………………………………………………………………… 214 Income Tax Transit Fund ………………………………………………………………………………………. 217 Motor Vehicle License Fund …………………………………………………………………………………… 218 Special Recreation Fund ……………………………………………………………………………………….. 219 Special Parks Fund ………………………………………………………………………………………………… 221 Streetcar Operations Fund ………………………………………………………………………………………. 222 Recreation Grants Fund …………………………………………………………………………………………. 224 Parks Fund ………………………………………………………………………………………………………….. 226 Safety Fund …………………………………………………………………………………………………………. 227 Cincinnati Blue Ash Airport Fund ………………………………………………………………………….. 229 Community Development Fund ……………………………………………………………………………… 230 Other Grants Fund ………………………………………………………………………………………………… 232 Bettman Nature Center ………………………………………………………………………………………….. 235

2

TABLE OF CONTENTS (Continued)

FINANCIAL SECTION (Continued) Page

Groesbeck Endowment Fund …………………………………………………………………………………. 236 Schmidlapp Park Music Fund ………………………………………………………………………………… 237 The W.M. AMPT Music Endowment Fund ……………………………………………………………… 238 Crosley Field Trust ……………………………………………………………………………………………….. 239 Kroger Trust ………………………………………………………………………………………………………… 240 Yeatman’s Cove Park Trust …………………………………………………………………………………… 241 Park Board Fund ………………………………………………………………………………………………….. 242 Nonmajor Enterprise Funds ……………………………………………………………………………………………………………… 243 Combining Statement of Net Position …………………………………………………………………………………. 245 Combining Statement of Revenues, Expenses and Changes in Net Position …………………………….. 246 Combining Statement of Cash Flows ………………………………………………………………………………. 247 Internal Service Funds …………………………………………………………………………………………………………………….. 249 Combining Statement of Net Position …………………………………………………………………………………. 251 Combining Statement of Revenues, Expenses and Changes in Fund Net Position …………………….. 253 Combining Statement of Cash Flows ………………………………………………………………………………….. 254 Fiduciary Funds – Agency Funds ……………………………………………………………………………………………………… 257 Combining Statement of Fiduciary Assets and Liabilities – Agency Funds ……………………………… 259 Combining Statement of Changes in Assets and Liabilities – Agency Funds …………………………… 260 Capital Assets Used in the Operation of Governmental Funds ………………………………………………………………. 263 Schedule by Source ………………………………………………………………………………………………………….. 265 Schedule by Function and Activity……………………………………………………………………………………… 266 Schedule of Changes by Function and Activity …………………………………………………………………….. 267 Schedules: Schedule of Outstanding Bonds and Notes, GAAP ………………………………………………………………………… 271 Schedule of Annual Debt Service – General Obligation and Revenue Bonds, Non-GAAP …………………… 272 Schedule of Receipts and Expenditures of Federal Awards …………………………………………………………….. 273 Infrastructure Income Tax ………………………………………………………………………………………………………….. 279

STATISTICAL SECTION Page

Financial Trends Net Position by Category ……………………………………………………………………………………………………………. 283 Changes in Net Position ……………………………………………………………………………………………………………… 284 Fund Balances, Governmental Funds ……………………………………………………………………………………………. 286 Changes in Fund Balances, Governmental Funds …………………………………………………………………………… 287 Program Revenues by Function ……………………………………………………………………………………………………. 288 Total Revenue by Source, Governmental Funds …………………………………………………………………………….. 289 Tax Revenue by Source, Governmental Funds ……………………………………………………………………………….. 289 Revenue Capacity Income Tax Revenue Base and Collections (Cash Basis) ………………………………………………………………… 290 Income Tax Revenues…………………………………………………………………………………………………………………. 291 Assessed Valuations and Estimated True Values …………………………………………………………………………… 292 Real Property Assessed Valuation by Type of Property …………………………………………………………………… 292

3

TABLE OF CONTENTS (Continued)

STATISTICAL SECTION (Continued) Page

Property Tax Rates – Direct and Overlapping Governments …………………………………………………………….. 293 Principal Property Taxpayers………………………………………………………………………………………………………. 293 Property Tax Levy and Collections ……………………………………………………………………………………………… 294 Water Works – Top Ten Retail Customer Data ………………………………………………………………………………. 295 Water Works – Historical and Projected Water System Pumpage …………………………………………………….. 296 Water Works – Accounts Receivable ……………………………………………………………………………………………. 296 Debt Capacity Ratios of Outstanding Debt by Type …………………………………………………………………………………………….. 297 Ratio of Net General Bonded Debt ………………………………………………………………………………………………. 298 Computation of Direct and Overlapping Debt ………………………………………………………………………………… 298 Legal Debt Margin ……………………………………………………………………………………………………………………… 299 Revenue Bonds Debt Service Coverage ………………………………………………………………………………………… 300 Bond Retirement Fund Balance, Southern Railway Revenue and Capital Improvement Program …………. 302 Water Works – Historical Financial Operations ……………………………………………………………………………… 303 Water Works – Projected Operating Results ………………………………………………………………………………….. 304 Water Works – Senior Bonds and Senior Subordinated Debt Service Requirements …………………………… 305 Water Works Revenue Bonds Debt Service Coverage …………………………………………………………………….. 306 Demographic and Economic Information Population Statistics ………………………………………………………………………………………………………………….. 307 Ten Largest Employers ………………………………………………………………………………………………………………. 308 Construction and Property Values ……………………………………………………………………………………………….. 309 Salaries of Principal Officials ……………………………………………………………………………………………………… 310 Surety Bond Coverage ……………………………………………………………………………………………………………….. 310 Annual Employment Average by Industry ……………………………………………………………………………………. 311 Higher Education ………………………………………………………………………………………………………………………. 312 Operating Information Full-Time Equivalent Positions by Function/Program ……………………………………………………………………. 313 Operating Indicators by Function/Program ……………………………………………………………………………………. 314 Capital Asset and Infrastructure Statistics by Function/Program ……………………………………………………… 315 Unions and Labor Contracts ……………………………………………………………………………………………………….. 316

4

March 8, 2021 The Honorable Mayor, Members of City Council, and the Citizens of the City of Cincinnati, Ohio We are pleased to submit the City of Cincinnati’s Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020. State law requires that the City of Cincinnati annually publish a complete set of financial statements for the results of its fiscal operations, presented in conformity with generally accepted accounting principles (GAAP). This report is prepared by the Department of Finance, which is responsible for the accuracy of the data and the completeness and fairness of its presentation, including disclosures. We believe the information presented is accurate in all material respects and reported in a manner designed to show the financial position and operating results of the City. GAAP require that management provides a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis (MD&A) located on page 23. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The Administration believes the City's internal control structure provides reasonable assurance that assets are safeguarded, transactions are recorded and reported appropriately, and policies are followed. The concept of reasonable assurance recognizes that the cost of a control procedure should not exceed the expected benefit. An important element of the City's control structure is the ongoing program to promote control consciousness throughout the organization. The Administration's commitment to this program is emphasized through written policies and procedures and a well-qualified financial staff. The Auditor of the State of Ohio has audited the accompanying financial statements for fiscal year 2020. Their report is included herein. A single audit is an organization-wide financial and compliance audit that is conducted in lieu of the traditional grant-by-grant multiple audits performed in the past. Federal law requires the City to have this single audit of all City federal grant activities. The City has remained in compliance with this requirement since its inception in 1985. The Auditor of the State of Ohio conducted the single audit for the 2020 fiscal year. Profile of the Government Cincinnati was founded in 1788, chartered as a village in 1802, and incorporated as a City in 1819. It is located on the Ohio River in Southwestern Ohio near the junction of Ohio, Indiana, and Kentucky. Voters approved major revisions to the City Charter in 1926 to provide for home rule and the council-manager form of government. The City’s form of government was modified in 2001 based on a charter amendment approved by the voters in 1999 to implement a stronger Mayor form of government. The Mayor is chosen through a direct election and the nine members of City Council are chosen in a separate at-large election.

5

The Mayor is elected to a four-year term and term limits enacted in November 1993 limit the Mayor to two consecutive four-year terms. In November 2012 voters approved a change in the City Council terms to two consecutive four-year terms beginning with the 2013 election. However, in November 2018 voters changed the terms back to the four consecutive two-year terms. The Mayor appoints the City Manager subject to prior approval of the City Council. The reporting entity includes the City and Health District, a blended component unit. In determining what constitutes the City reporting entity, the criteria established by the Governmental Accounting Standards Board were used. The City is not financially accountable for any other potential component units. Hamilton County and the Cincinnati City School District are separate governmental jurisdictions that overlap the City's boundaries. These entities are not included in the City's financial reports. An annual operating budget is adopted each fiscal period for the General Fund and several Special Revenue Funds which operate on an annual budget. Budgetary data is presented for these funds as well as the Capital Projects Funds, Debt Service Fund, Tax Increment Financing Funds, Health District Funds, Permanent Funds, and other Special Revenue Funds which are mostly grants. For each budgeted expenditure classification, the level of appropriation control, which may not be exceeded, is personal service, non-personal service, capital outlay, and debt service. Any revisions that alter the appropriation control classification of any division within a City department must be approved by the City Council. Encumbrances do not lapse and are included as expenditures in the current period budget (Non-GAAP Budgetary Basis). The City provides the full range of municipal services including police and fire protection, parks, recreation, public services (highways, streets, and waste collection), health and human services, culture, public improvements, planning and zoning, general administrative, and water and sewer services. Information Useful in Assessing the Government’s Economic Condition Local Economy The City's diverse economic base has been, and continues to be, a source of financial stability for the City. Among its prominent manufacturing groups are transportation equipment, which includes aircraft engines and auto parts; food and kindred products; metal working and general industrial machinery; chemicals; fabricated metal products; and printing and publishing. Several Fortune 500 corporations are headquartered in the City's region, and over 400 Fortune 500 firms have operations in the Metropolitan Area. According to a report released by the Ohio Department of Job and Family Services in July 2020, Ohio’s June 2020 unemployment rate was 10.9%. This was a decrease from the revised May 2020 rate of 13.9% but was an increase of 4.1% compared to June 2019. Cincinnati’s June 2020 unemployment rate was 12.7% compared to 4.7% in June 2019, which was an increase of 8.0%. Over the month of June, employment in Ohio’s goods- producing industries, the private service-providing sector, and government increased. Compared to June 2019, the local average home price in June 2020 increased by 3.3%, and the median home price increased by 7.5%. Per the U.S. 2010 Census, the City of Cincinnati’s population was 296,943. The 2019 population estimates made by the Census Bureau has the Cincinnati population increasing to 303,940. The March 2020 outbreak of a novel strain of the coronavirus, referred to as COVID-19, has caused significant changes in economic activity in the City of Cincinnati. The local economy has experienced reduced consumer spending and increased unemployment as well as government mandated and voluntary school and business closures, event cancellations, and reduced travel as a result of the pandemic.

6

The City, Administration with the support of the Mayor and City Council, has proactively managed the effect of the reduction in revenue on the fiscal year 2020 budget due to the pandemic by reducing department budgets, freezing raises for non-represented employees, shifting Human Services funding to Community Development Block Grant CARES Act stimulus funding, offering an Early Retirement Incentive Program, and placing nonessential employees on Temporary Emergency Leave. In addition, the City secured a short-term note, which was authorized under Ohio Revised Code Section 133.12, in the amount of $50 million to fund costs related to preventing the spread of the coronavirus. To date, the City has not had to draw on this note to cover expenditures. These innovative efforts allowed the City to meet the needs of its citizens while also producing a surplus in the General Fund for fiscal year 2020 which enabled reserve funding to be increased by $6 million and additional one-time budget expenditures to be approved. Long Term Financial Planning The City adheres to a Mayor and City Council approved Stabilization Policy which ensures that the City maintains a strong financial position and protects its general obligation bond rating during periods of fiscal stress. The policy calls for the achievement of a minimum reserve level for emergency needs of a catastrophic nature of two months, or 16.7%, of general operating revenues. The four components of the policy are the General Fund Carryover Balance, the General Fund Contingency Account, the Economic Downturn Reserve, and the Working Capital Reserve. The policy also includes a waterfall funding mechanism which defines the use of excess carryover for the purpose of replenishing any draws on reserves from the prior year, maintaining stabilization fund goal levels, and adding funds to the City’s reserve balance each year in order to achieve the recommended fund balance over time. At June 30, 2020, reserves were 13.9% of fiscal year 2020 revenue. Fiscal year 2020 is the third consecutive year the City increased its reserve balance. Actual Non-GAAP General Fund …

Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.

Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.

Do you need an answer to this or any other questions?