Vernon CAFR 2010

COMPREHENSIVE
ANNUAL FINANCIAL REPORT

of the
TOWN OF VERNON,
CONNECTICUT
FOR THE YEAR ENDED
JUNE 30, 2010
PREPARED BY:
THE FINANCE DEPARTMENT
JAMES LUDDECKE, FINANCE OFFICER/TREASURER
TOWN OF VERNON, CONNECTICUT
COMPREHENSIVE ANNUALFINANCIAL REPORT
AS OF AND FORTHE YEARENDED JUNE 30, 2010
TABLE OF CONTENTS
INTRODUCTORY SECTION
LIST OF PRINCIPAL OFFICIALS .
ORGANlZATIONALCHART..................................................................................................................................... 2
LETTER OF TRANSMITTAL 3
CERTIFICATE OF ACHIEVEMENT FOR EXCELLENCE IN FINANCIAL
REPORTING FORTHE YEARENDED JUNE 30, 2009............................................................................. 18
FINANCIAL SECTION
INDEPENDENT AUDITORS' REPORT..................................................................................................................... 19
MANAGEMENT DISCUSSION AND ANALYSIS 21
BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:
EXHIBITS
A STATEMENT OF NET ASSETS...................................................................................................... 36
B STATEMENT OF ACTIVITIES 38
FUND FINANCIAL STATEMENTS:
C BALANCE SHEET AND RECONCILIATION OF FUND BALANCETONET
ASSETS OF GOVERNMENTAL ACTIVITIES - GOVERNMENTAL FUNDS 39
D STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES - GOVERNMENTAL FUNDS............................................................. 41
E RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO
STATEMENT OF ACTIVITIES.................................................................................................. 42
F STATEMENT OF NET ASSETS-PROPRIETARYFUNDS........................................................ 44
G STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUNDNET ASSETS -
PROPRIETARYFUNDS 45
TABLE OF CONTENTS (CONTINUED)
EXHIBITS
FUND FINANCIAL STATEMENTS: (CONTINUED)
H STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS...................................................... 46
I STATEMENT OF FIDUCIARYNET ASSETS............................................................................... 47
J STATEMENT OF CHANGES IN FIDUCIARYNET ASSETS..................................................... 48
NOTES TO BASIC FINANCIAL STATEMENTS:
K NOTES TO BASIC FINANCIAL STATEMENTS.......................................................................... 49
REQUIRED SUPPLEMENTARYINFORMATION:
RSI 1 SCHEDULE OF REVENUES AND OTHERFINANCING SOURCES -
BUDGET AND ACTUAL................................................ 92
RSI2 SCHEDULE OF EXPENDITURES AND OTHER FINANCINGUSES -
BUDGET AND ACTUAL............................................... 96
RSI 3 SCHEDULE OF FUNDINGPROGRESS - VERNONRETIREMENT SySTEM........................ 102
RSI4 SCHEDULE OF FUNDINGPROGRESS - VERNONOTHER POST EMPLOYMENT
BENEFIT PLANS 104
RSI5 SCHEDULE OF EMPLOYER CONTRIBUTIONS - VERNON RETIREMENT SYSTEM
AND OTHER POST EMPLOYMENT BENEFIT SYSTEM 105
SCHEDULES
SUPPLEMENTALSCBEDULES
GENERAL FUND
1 COMPARATIVE BALANCE SHEET 106
2 REPORT OF THE TAX COLLECTOR........................................... 107
NONMAJORGOVERNMENTAL FUNDS
3 COMBININGBALANCE SHEET.................................................................................................... 108
4 COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES 113
SCHEDULES
INTERNAL SERVICE FUNDS
5 COMBINING STATEMENT OF NET ASSETS 118
6 COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN
FUNDNET ASSETS 119
7 COMBINING STATEMENT OF CASH FLOWS 120
FIDUCIARYFUNDS
8 COMBINING STATEMENT OF NET ASSETS-AGENCYFUNDS.......................................... 121
9 AGENCY FUNDS - COMBINING STATEMENT OF CHANGES IN
ASSETS AND LIABILITIES....................................................................................................... 122
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
10 SCHEDULE BY FUNCTION AND ACTIVITy............................................................................. 123
11 SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY 124
TABLE
STATISTICAL SECTION
NET ASSETS BY COMPONENT 125
2 CHANGES INNET ASSETS............................................................................................................ 126
3 FUND BALANCES, GOVERNMENTAL FUNDS......................................................................... 128
4 CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS............................................... 129
5 CHANGES IN NET ASSETS - PENSION TRUST FUND 131
6 BALANCE SHEETS - GENERAL FUND 132
7 REVENUES BY SOURCE AND OTHER FINANCING SOURCES -
GENERAL FUND................................................................................................................... 133
8 EXPENDITURES BY FUNCTION AND OTHER FINANCING USES -
GENERAL FUND................................................................................................................... 134
9 TAXABLE ASSESSED VALUE AND ESTIMATED ACTUAL VALUE
OF TAXABLE PROPERTY 135
10 NET TAXABLE GRAND LIST AND PERCENTAGE CHANGE............................................ 136
11 PRINCIPAL PROPERTY TAXPAYERS............................................................ 137
12 PROPERTY TAX LEVIES AND COLLECTIONS 138
TABLE
STATISTICAL SECTION (CONTINUED)
13 SEWER ASSESSMENTS BILLING AND COLLECTIONS 139
14 RATIO OF OUTSTANDING DEBT BY TYPE 140
15 RATIO OF NET GENERAL BONDED DEBT OUTSTANDING 141
16 RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL DEBT
TO GENERAL FUND EXPENDITURES 142
17 SCHEDULE OF DEBT LIMITATION ;.................................................... 143
18 SCHEDULE OF LEGAL DEBT LIMITATION 144
19 DEMOGRAPHIC AND ECONOMIC DATA............................................................................. 145
20 U.S. BUREAU OF CENSUS STATISTICS 146
21 MAJOR EMPLOYERS 147
22 PROPERTY VALUES, CONSTRUCTION AND BANKDEPOSITS 148
23 LAND USE STATISTICS...... 149
24 SCHOOL FACILITIES AND ENROLLMENT DATA............................................................... 150
25 MUNICIPAL FULL-TIME EMPLOYMENT BY FUNCTIONIPROGRAM 151
26 MUNICIPAL EMPLOYMENT, BY BARGAINING UNIT 152
27 OPERATING INDICATORS BY FUNCTIONIPROGRAM...................................................... 153
28 CAPITAL ASSET STATISTICS BY FUNCTIONIPROGRAM................................................. 154
Introductory
Section
TOWN OF VERNON. CONNECTICUT
PRINCIPAL OFFICIALS
JUNE 30, 2010
MAYOR
Jason L. McCoy
TOWN COUNCIL
Daniel E. Anderson
Bill F. Campbell
Daniel A. Champagne
MarkS. Etre
JudyM. Hany
Marie A. Herbst
TOWN OFFICIALS
Town Administrator
Finance Officer / Treasurer
Town Clerk
Chief, Police
Captain, Police
Chief, Fire / Ambulance
Director, Data Processing
Director, Emergency Management
Director, Human Resources / Assistant Town Administrator
Director, Public Works
Director, Recreation
Director, Senior Center
Director, Social Services
Director, Waste Treatment
Director, Youth Services
Ambulance Coordinator
Animal Control Officer
Assessor
Building Inspector
Business Manager, Waste Treatment
Cemetery Superintendent / Foreman
Collector of Revenue
Controller
Fire Marshal
Registrar (D)
Registrar (R)
Town Attorney
Town Engineer
Town Planner
Assistant Town Planner / Economic Development Coordinator
BOARD OF EDUCATION
George F. Apel
Laura B. Bush
Anne H. Fisher, Chairperson
Susan N. Hesnan
Dean A. Houle
EDUCATION OFFICIALS
Superintendent of Schools
Assistant Superintendent of Schools
Director of Business and Finance
INDEPENDENT AUDITORS
Kostin, Ruffkess & Company, LLC
1
James E. Krupinski
Brian R. Motola
Sean O'Shea
Pauline A. Schaefer
Harry D. Thomas
Michael A. Winkler
JohnD. Ward
James M. Luddecke
Bernice K. Dixon
James Kenny
Stephen Clark
William M. Call
ArthurBeirn
Michael J. Purcaro
Peter Graczykowski
Robert Kleinhans
Bruce W. Dinnie
Penelope A. Rand
Paula Claydon
David R. Ignatowicz
Alan M. Slobodien
Jean Gauthier
Craig P. Segar
David A. Wheeler
Basil Hobbs
George Rostkowski
AlanB. West
Terry A. Hjarne
Frank J. Zitkus
Raymond A. Walker
Judith A. Beaudreau
Patricia S. Noblet
Harold R. Cummings
Terry D. McCarthy
Leonard Tundermann
Marina Rodriguez
David G. Kemp
Kyle W. Percy
Vicky A. Rispoli
Paul M. Stansel
Richard Paskiewicz, Interim
Deborah Murasso
Stanley Karasinski
TOWN OF VERNON, CT
ORGANIZATION CHART
Electors
I
I I
Board of Education Mavor I I Town Council Reoistrar of Voters
I
Superintendent
of Schools
I I I I
All Other Boards, Committees & Authorities, Boards
School Personnel Commissions Health &Welfare &Committees Administration Mavor Pro Temoore
Capital Improvements Animal Control Officer Board of Assessment Appeals Town Clerk and Assistants
Committee Municipal Agent for Elderly Risk Management Committee Town Treasurer
Economic Development Tree Warden Fire Marshal and Deputies
Commission Indeoendent Auditor
Youth Services Advisory Board
I I I I I
Authorities, Boards, Department Department Health
Commissions & of of Department of Public Works &
Committees" Administration" Finance" Public Safety" and Cemeteries" Welfare"
Authorities: Town Administrator Finance Officer Chief of Police Director of Public Works Building Official &Assistants
Housing Authority Assistant Town Administrator Controller Police Captain Superintendent of Cemeteries Director of Health ..
Traffic Authority Director of Data Processing Assessor and Deputy Emergency Management Director of Social Services
Water Pollution Control Economic Develop Coordinator I Tax Collector and Assistant Director and Deputy Director of Parks &Recreation
Boards: Assistant Town Planner Fire Chief and Assistants and Assistant
Building Code of Appeals Town Attorney Director of Water Pollution
Ethics Town Engineer Control and Assistant
Pension Town Planner Director of Youth Services
Zoning Board of Appeals Zoning Enforcement Officer
Commissions:
Arts
Cemetery
Conservation
Human Services Advisory
Inland Wetlands Regulatory
Historic Properties
Planning and Zoning
Committees:
Design Review Advisory
Jury
Pennanent Municipal Building
Senior Citizens Advisory
Other ad hoc/advisory Boards,
Commissions &Committees
" Mayor recommended, Town Council approved.
"The Town isa member of the North Central District Health Department.
OFFICE OF THE
FINANCE DEPARTMENT
TOWN OF VERNON
14 PARK PLACE, VERNON, CT 06066
Tel: (860) 870-3690
Fax: (860) 870-3587
E-mail: jluddecke@vemon-ct.gov
December 27,2010
To the Honorable Mayor,
Members of the Town Council, and Residents of the
Town of Vernon, Connecticut
I am pleased to submit the Comprehensive Annual Financial Report (CAFR) of the Town of Vernon,
Connecticut, for the year ended June 30, 2010. This report was prepared in its entirety by the Town's
Finance Department and consists of management's representations concerning the finances of the Town of
Vernon. Consequently, responsibility for both the accuracy of the data and the completeness and fairness of
the presentation, including all disclosures, rests with the Town. As management, we assert that, to the best
of our knowledge and belief, this financial report is complete and reliable in all material respects; that it is
presented in a manner designed to fairly set forth the financial position and results of operations of the Town
as measured by the financial activity of its various funds; and that all disclosures necessary to enable the
reader to gain maximum understanding of the Town's financial condition and the financial results of its
operations have been made. To provide a reasonable basis for making these representations, management of
the Town of Vernon has established an internal control framework that is designed both to protect the
government's assets from loss, theft, or misuse and to compile sufficient reliable accounting information for
the preparation of the Town of Vernon's financial statements in conformity with generally accepted
accounting principles for governmental units as promulgated by various authoritative bodies through their
publications, statements of position, and other pronouncements. These bodies include the Governmental
Accounting Standards Board (GASB), the American Institute of Certified Public Accountants, and the State
of Connecticut Office of Policy and Management. The internal controls are designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes
that:
the cost of control should not exceed the benefits likely to be derived and;
the valuation of costs and benefits requires estimates and judgments by management.
The purpose of the CAFR extends beyond accepted requirements in an effort to present all the information
necessary to meet the needs of many persons and groups with legitimate interests in the financial affairs of
the Town.
The Town of Vernon Charter requires an annual audit of the books of account, financial records, and
transactions of all administrative departments of the Town by independent certified public accountants
selected by the Town Council. This requirement has been complied with and the Town's financial
statements have been audited by Kostin, Ruffkess and Company, LLC, a firm of licensed certified public
accountants. The goal of the independent audit was to provide reasonable assurance that the financial
statements of the Town for the fiscal year ended June 30, 2010, are free of material misstatement.
3
The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements; assessing the accounting principles used and significant estimates made by
management; and evaluating the overall financial statement presentations. The independent auditor
concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that
the Town's financial statements for the fiscal year ended June 30, 2010, are fairly presented in conformity
with GAAP. The independent auditor's report is presented as the first component of the financial section of
this report.
The independent audit of the financial statements of the Town was part of a broader, federally mandated
"Single Audit" designed to meet the special needs of federal grantor agencies. The standards governing
Single Audit engagements require the independent auditor to report not only. on the fair presentation of the
financial statements, but also on the audited government's internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving the administration
of federal awards. The state single audit, in conformity with legal requirements and internal controls for
state assistance was also performed. These reports are available in the Town's separately issued Single
Audit Report.
Generally accepted accounting principles (GAAP) require that management provide a narrative introduction,
overview, and analysis to accompany the basic financial statements in the form of Management's Discussion
and Analysis (MD&A). This letter of transmittal is designed to complement MD&A and should be read in
conjunction with it. The Town of Vernon's MD&A can be found immediately following the report of the
independent auditors.
ProiIIe of the Town
The Town of Vernon, located in the northeast part of the state, was originally part of Bolton, Connecticut,
was incorporated as a separate township in October 1808. In 1965, the Town of Vernon, in its current form,
was created when the Town, the City of Rockville and the Vernon Fire District were consolidated. At that
time, the Town of Vernon assumed all assets and liabilities of each of the governmental units and a new
town charter was adopted. Since 1970, when the charter was revised, Vernon has operated under a Mayor-
Town Council form of government with a full time professional Town Administrator. Policy-making and
legislative authority are vested in the Town Council consisting of twelve council members, with the Mayor
presiding over meetings and eligible to vote in the event of a tie. The Town Council is responsible, among
other things, for passing ordinances, approving the budget, appointing committees, the town attorney,
auditing firms, and hiring the Town Administrator and other department heads. The Town Administrator is
responsible for implementing the approved policies and ordinances, and for overseeing the day-to-day
operations of the government. The Mayor and the Town Council are elected at large on a partisan basis to
serve two-year terms. The maximum amount of seats for one political delegation is eight.
The Town of Vernon provides a full range of services, including police and fire protection, ambulance
services, construction and maintenance of streets and other infrastructure, solid waste and recycling services,
building maintenance, offers and supports a variety of human services, and recreational activities and
cultural events. The Town owns and operates an advanced wastewater treatment facility that serves
approximately 80% of the Town's residents. With the capability of treating an average flow of 7.1 million
gallons per day, the facility also accepts sanitary waste from portions of the surrounding towns of Tolland,
Ellington, Manchester and South Windsor in accordance with the provisions of Intergovernmental Sewer
Agreements between each of those communities and the Town. The Town's educational system for its
residents consists of five elementary schools, one middle school, and one senior high school. In addition,
Vernon has two K-8 parochial schools.
4
The annual operating budget serves as the foundation for the Town of Vernon's financial planning and
control. Exhibit K, section ILA, in the Notes to the Basic Financial Statements (Notes) describes the budget
process used by the Town. The appropriated budget is prepared by fund, function (e.g., public safety) and
department (e.g. police). Department heads may request transfers of appropriations within account
classifications to the Finance Officer. Other transfers within a department and between other departments,
however, require the approval of the Town Council. Budget to actual comparisons are provided in this report
for the general fund, the only legally adopted budget as prescribed by the Town Charter.
In addition to budget preparation and amendments, the Town maintains extensive budgetary controls. The
objective of these budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget adopted for the General Fund and as may be amended by the Town Council during the
year. To aid in budgetary control, the Town maintains an encumbrance accounting system to record
obligations by line item. Certification of funds available is required prior to issuance of purchase orders,
which are recorded as encumbrances in the budgetary accounting system.
The various funds utilized by the Town of Vernon are further described in Exhibit K, section LA, of the
Notes. As demonstrated by the statements and schedules in the financial section of this report, the Town
continues to meet its responsibility for sound financial management.
Local Economy and Major Initiatives
Local Economy
The Town of Vernon is a residential community of 18.6 square miles located 14 miles east of Hartford on
Interstate 84 in north central Connecticut. Interstate 84, traverses the Town, having four interchanges within
the Town's borders, and connects with 1-90,1-384,1-91 and 1-291, which provide convenient highway access
to all areas of Connecticut, Massachusetts and New York. Additional accessibility is provided by U. S. Route
44 and State Routes 30, 31, 74, and 83. National and international air service is provided by Bradley
International Airport, which is only thirty minutes from Vernon. The well-situated access provided by
Interstate 84 within the Greater Hartford area has contributed to Vernon's development as a residential
suburban community and a regional commercial center for neighboring towns.
The economic base for Connecticut, as well as for Vernon, has had an overall change from that of
manufacturing to retail commerce and professional services.. Of the top fifteen firms in Vernon, 91.8% are
employed in services while only 8.2% are employed in manufacturing and printing. Approximately 41.4%
of this employment is with non-profit and public organizations. The largest Vernon employer is the Town of
Vernon, which has 835 employees. The second largest employer is Rockville General Hospital with 559
employees, followed by Visiting Nurse and Health Services with 458 employees, Ticket Network with 260,
Price Chopper with 250, the State of Connecticut with 227, New England Mechanical Services with 200
employees, Stop and Shop with 184 employees, Fox Hill Nursing and Rehabilitation with 180 and Vernon
Manor with 178.
In Vernon, the number of individuals employed by the top ten companies increased by 136 or 4.2% during
the past year. Some of the decreases in employment included (9) for the Town of Vernon, (26) at Rockville
General Hospital, (28) at New England Mechanical, (22) at Stop & Shop, (16) at Fox Hill and (17) for
Vernon Manor. Increases in employment included 110 at Visiting Nurse and Health Services, 59 for Ticket
Network, 54 for Price Chopper and 31 at the State of Connecticut.
5
Vernon's population for the year ended June 30,2010, was 30,182 compared with 29,839 on June 30,2009,
an increase of 343 or 1.15%. This increase of 343 residents follows an increase in population of 219 or
0.73% during the previous one-year period.
Approximately 82% of Vernon's labor force is employed outside the town. On a regional basis, our
residents' income is derived from major insurance firms, defense industries, financial institutions and capital
goods producers. The town's unemployment rate at June 30,2010 was 8.4%, an increase of 1.1% from June
30,2009 unemployment rate of 7.3%. In recent history, the unemployment rate was 5.5% in 2008,4.3% in
2007, 4.2% in 2006, and 4.9% in 2005. The increase in the unemployment rate is influenced by the recent
downturn in the overall economy, however, Vernon's unemployment rate compares favorably to that of the
State of Connecticut, 8.8%, and for the nation, 9.6%. The Town of Vernon generally shares the same
economic health as the State of Connecticut and the Hartford region, therefore experiencing the economic
effect of a slowdown in the financial and insurance sector; and business investment in new construction.
Looking forward, a continuation of policies directed to enhance the financial sector, generally are not labor
driven. In addition, a decline in federal stimulus funding to the state and municipalities raises concern about
the future employment trend. Locally, the composure of our community's resources indicates that any
unemployment increase in the near future will be modest.
Vernon completed a town wide revaluation of property as of October 1, 2006, which was effective for the
2007-08 fiscal year. Our tax base for the October 1, 2009 grand list grew by .21%, inclusive of a .13%
increase in the real estate portion.
Property taxes have been supported by strong collection rates, averaging 98.2 % over the past ten years. The
number of building permits increased from 1,466 to 1,850, and the value of those permits increased from
$21,322,371 to $23,378,948.
The 2010-2011 operating budget was approved by the Town Council and sent to the annual Town Meeting
for adoption. The budget was instead petitioned to a referendum vote, held on May 11, 2010, and the voters
adopted the budget. The mil rate increased by 1.60 mils, from 28.42 to 30.02. We will continue to provide
the voters with information to make knowledgeable decisions, as we have a responsibility to educate our
residents on the programs and services presently provided, as well as those proposed.
The local economic base serves the region as a commercial, governmental, legal, and medical center. Local
employment in manufacturing has been replaced by employment in these service areas. This shift is revealed
in the additions to the tax base as planned development and new construction are related to retail commerce
and professional services.
In October 2008, the Planning and Zoning Commission adopted zoning regulations for a comprehensive
multi-family development zone. It is anticipated that once market conditions improve with a boost in
lending, applications will be submitted to rezone certain areas in town for developments of this type.
The economic areas for new development are downtown Rockville, Vernon Circle, Lafayette Square, the 1-
84 corridor, and the Gerber Farm area.
6
Rockville Section:
The former Rockville mills section has made a transition from being primarily an industrial and commercial
center to being a professional and governmental center. It is the site of local government, education, and
State of Connecticut administrative offices and courthouses. The initial development of downtown
Rockville occurred over one hundred years ago, creating its distinctive Victorian urban character and
invaluable architecture. However, this also creates the need for reinvestment and modernization. In addition
to improvements to municipal and state buildings, the following recent advancements have been made.
The Town of Vernon has actively supported the redevelopment of the Village Street area adjacent to
Rockville General Hospital in supporting the Vernon Nonprofit Housing Corporation's (VNHC)
rehabilitation of eleven structures on the street, by providing Community Development Block Grant (CDBG)
funds to assist first time home buyers. The houses controlled by VNHC have received environmental
remediation and new roofs. The VNHC has renovated and sold 4 units on Village Street, is currently
renovating 7 others and has erected an additional 3 units on vacant lots. To further this effort to reinforce the
neighborhood rehabilitation activities, Village and Orchard Streets have recently been reconstructed.
The Rockville Public Library at 52 Union Street received approval in April 2009 for a new addition to the
existing facility. In August 2009, a special permit was issued to convert an existing vacant residential
property to a professional medical office at 94 Union St. This work has been was completed and has made a
significant visual improvement to this property. At One Ellington Avenue, an existing abandoned mansion
with guesthouse is being converted to apartment buildings. The guesthouse has been renovated and
restoration of the Main House is anticipated to occur in the near future. This property had been for sale for a
lengthy period of time.
In October 2010, the Vernon Planning and Zoning Commission revised an adaptive re-use zoning regulation
originally developed for conversion of obsolete mill buildings and made it applicable to any structure in
Rockville built no later than 1910 and containing a minimum of 5,000 square feet. This amendment will
allow old buildings that have outlived their original uses to be returned to economically viable uses.
Vernon Circle / Route 30 - Hartford Turnpike / Route 83 - Talcottville Road:
The Vernon Circle area continues to make a positive adjustment to the regional shopping center development
in the Buckland Hills section of Manchester, and Evergreen Park in South Windsor, just one highway exit
west on 1-84. The Tri-City Plaza has a very successful retail mix of value-oriented stores.
The K-Mart Plaza, located on Pitkin Road and Route 30, and the Goodyear Tire Plaza, 378 Kelly Road,
although both experience transition phases of businesses closing and new businesses opening, remain
enduring and attractive developments in promising locations. Dunkin Donuts, and the Sunoco and Citgo
service stations, all on Talcottville Road, as well as Johnnie's Mobil on West Street, have all been recently
renovated.
In the Talcottville section of Vernon, 167 Hartford Turnpike, a Volkswagen dealership has been constructed.
The Colony Banquet Hall and Restaurant closed in December 2007. Presently, plans have been approved for
a 120-room Marriot Spring Hill Suite Hotel in place of the Colony Restaurant. Completion of the recent
development has strengthened the Vernon Circle area overall. There is a clear pattern that as the vacancies
in Vernon Circle become occupied, the available space on the periphery is being filled and is becoming more
attractive for extended development. In addition an enhancement project was initiated along Main Street and
Elm Hill Road in the historic section of Talcottville. Improvements underway include the development of a
walking trail with informational signage, period lighting, the construction of an information center Kiosk,
selective plantings, and entrance signage to the area. The project is 100% funded by the two federal grants.
7
The State of Connecticut continued the reconstruction and safety improvements along a section of Route 83
(Talcottville Road). This project extends from the I-84 off ramp, northerly to Pitkin Street and provides for
improved operations and safety, by the addition of a center landscaped median, lane additions and traffic
signal additions and modifications. This project, 100% funded by the State, supports and enhances the
commercial and retail developments in the area.
Also on Route 83, three vacant parcels at 360 Talcottville Road were combined into two parcels to construct
the 16,000 square foot Aldi's Supermarket. Additional development on the site was approved including an
8,400 square foot day care facility and a 4,000 square foot retail building, to establish the "The Shoppes at
Vernon Valley". The 35-acre parcel located at 243 Talcottville Road sold for $3,400,000. Zoned for
commercial use, this parcel will be developed by Boston / Manchester II, LLC; however, for the present, the
parcel has been classified, for assessment purposes, as Open Space land in the 2009 grand list. Additional
development was also approved along Hockanum Boulevard including a new 12,000 square foot industrial
building and support structures.
The new owners of the former Heartland Plaza at 425 Talcottville Road continue restoration improvements
and are making a remarkable visual change to the property. This highly visible and long time vacant and
blighted commercial structure is undergoing a vibrant and aesthetically pleasing overhaul. The property will
soon be a lively commercial destination along Route 83.
A new gas station / convenience store is currently under construction at 229 Talcottville Road, the site of an
existing gas station, with attached repair areas. This new facility will include new underground gas storage
tanks that will provide improved environmental protections. The new owners of the former Gottier
Furniture Store at 48 Windsor Avenue received approval in May 2009 for an outdoor lawn and garden
merchandise display for their newly opened "Lots & More" store. A new 8,372 square foot Liquor Store is
currently under construction at 482 Talcottville Road. A spring 2011 completion is anticipated.
Lafayette Square:
The Lafayette Square commercial area has been experiencing steady development. The 28,000 square foot
complex at 10 Hyde Avenue, known as 30 Lafayette Square, was purchased and the new owners rejuvenated
the property, both interior and exterior, inclusive of architectural improvements to the building fayade. In
June 2010, the owners received approval to add a building containing a 1,800 square foot restaurant and a
2,800 square foot area of retail space within the plaza. The building is under construction and will open
early in 2011. Two proposals for assisted living elderly facilities of approximately 100 units each have been
approved by the Planning and Zoning Commission (PZC), but no action has occurred. At 75 Hyde Avenue,
construction is ongoing for the 76 private condominiums for the new Bridlewood development. As part of
this approval, the developer has offered to construct sidewalks from the new development along Route 30 to
the Northeast School to safely accommodate school children.
1-84 Corridor:
The I-84 corridor offers potential for office park development around the Exit #66 interchange and retail
development around the Exit #67 interchange. A proposal to replace the New England Sportplex athletic
fields with a 132,973 square foot Home Depot and Garden Center was advanced by a negotiated agreement
with the Planning and Zoning Commission. The agreement stipulates a smaller building and parking lot;
sewer hookup; the widening of the road; and environmental concessions. Although Home Depot has
abandoned its plan to build on this site, the approval will stand with the anticipated court ruling upholding
the negotiated settlement. The site may then be marketed with the approval plan in place. The Town is
considering a Tax Increment Financing District that would bring water and sewer lines up to the sites.
8
On the north side of Exit 67, the Planning and Zoning Commission eliminated a setback requirement within
the mixed-use zone that substantially expands the buildable area within the zone.
The industrial park off Exit 66 continues to undergo development. A bulk propane distribution facility was
approved late in 2009, and its construction is expected to occur in 2011. A small addition was approved in
2010 for a vacant building in the park, recently purchased for the relocation of a business from a neighboring
town.
Gerber Farm:
With co-investments from the Town of Vernon, a bridge and access road for the new Hockanum Boulevard
was constructed. The bridge and road provides access to the approximately 275-acre Gerber Farm area for
development. The PZC adopted the area as a Mixed Use Development (MUD) district. This allows for
mixed-use development based upon a comprehensive plan and an economic fiscal impact analysis that
demonstrates net positive tax revenue for the Town. The developer constructed a 424-luxury rental unit
complex, the Mansions at Hockanum Crossing, and three industrial buildings amounting to 64,000 square
feet. Subsequently, the construction of Mansion 2 occurred, a 270 luxury apartment complex. The rental
project total assessment is estimated at $42,130,000.
Mill Properties:
Industrial development has proven to be the most difficult economic challenge for municipalities in
Connecticut as manufacturers leave the state and available employment declines. The decline of industry in
Vernon relates to the lack of industrial land and the obsolescence of existing facilities, as well as to the
general diminishing of manufacturing employment. With only 8.3% of the town zoned for commercial and
industrial use, the town is aggressively pursuing the availability of large parcels of land for industrial
development while facing the additional task of addressing the redevelopment of older mill properties.
The crafting of a new stimulus package in Washington D.C., will be most effective with a concentration of
public infrastructure, local and state aid, and a philosophy of ''bottom to top" recovery. The seriousness of a
well-planned economic recovery package, with prudent regulatory controls, inclusive of stabilizing energy
prices, food, and health care costs, in conjunction with the Federal Reserve Quantitative Easing policy, is
essential to long-term financial health. If the federal government responds accordingly, then cautious
optimism of a strengthened economy, with modest improvements in unemployment and GDP gains at the
end of the next twelve months can be realized. The creation of jobs through clean energy, infrastructure,
small business capital, technology, nanotechnology, infrastructure investment, and local and state aid, needs
to be packaged in a multi-year plan to accomplish steady progress. For three decades, the erosion of federal
domestic spending has placed a serious burden on the budgets of state and municipal governments, and the
spending pressures of global terrorist security and military operations, has exacerbated the situation. Further
domestic reductions to fund federal tax decreases and the new found effort to tame the growth in the deficit,
will most likely be counter-productive. The continuation of stimulus funding is an opportunity to reverse
that trend.
For the Town of Vernon, successful and continued pursuit of the economic development cited in this section
enables the town to take advantage of any gradual business expansion and demand for developmental sites,
thus greeting the future with a tax base strengthened by those objectives.
9
Major Initiatives
General Government:
The town completed extensive renovations to the third floor of the Town Hall last fiscal year at a cost of
$1,864,873. These improvements included an expanded Town Council Chambers and administrative office.
Funding was primarily supported by three state grants. The Town was awarded a $50,000 Community
Investment Act state grant to fund renovations to its second floor finance office and mezzanine. A $90,000
designation of available Town Capital Nonrecurring funds for these renovations was also approved. Also,
$24,690 was authorized to replace the roof at the Town Hall Annex building utilizing state LOCIP grant
funds.
Americans with Disabilities Act (ADA) improvements to town facilities continued, and will proceed with
available funds of $102,272. There were renovations to the Town Clerk's office vault. For the future, there
is an allocation of $19,745 for current modifications; and $190,000 is available major improvements to
increase storage space by expanding the vault.
A $60,000 appropriation to provide for the acquisition and development of a Geographical Information
System (GIS) has been completed and complemented by a $23,000 recent appropriation to purchase
compatible equipment. The Town Council also authorized an appropriation of $200,000 from available
Town Capital Nonrecurring funds to fund an optical fiber infrastructure project that was completed shortly
after year-end.
Community Development:
In its continue effort to support and initiate interest in economic development in town, $90,881 was
appropriated to the Economic Development special revenue fund during the year to finance an update to the
town's Plan of Conservation and Development (POCD), provide funding to its Downtown Association and
for targeted advertising. Annual appropriations to this Fund commenced in 1999 and have funded several
property reuse studies, retail fac;ade improvements and the most recent POCD.
The Town received a $125,000 state grant to conduct an engineering and architectural feasibility study to
determine the most effective building improvements Amerbelle Mill, a local industrial employer. In
addition, the town secured an additional $196,000 federal grant to complement these improvements with
funding for a roof replacement and additional building improvements. The $125,000 project was completed
last year and the $196,000 project was recently completed.
The Town has received state grants totaling $1,200,000 to provide funding for selective site demolition and
environmental remediation at the currently vacant Roosevelt Mill located at 215 East Main Street. These
grant funds were preceded by a prior year receipt of federal Brownfield cleanup funds utilized for a site
evaluation and remediation project recently completed. It is envisioned that the property will be redeveloped
for future mixed use. To facilitate this project, the Town established the RMRP Corporation, a separate non-
profit entity, to which property liens were assigned, and in tum, Loom City Lofts, a developer secured the
liens and obtained title to the property. This work was initiated in January of 2010 and is anticipated to be
completed in December of2010.
10
The Town was awarded a $20,000 state grant to fund a feasibility study of the Citizens Block. The town-
owned Citizens Block is a primarily vacant commercial and mixed use 1879 building, adjacent to the 1867
senior center building, located next to Town Hall. This study, requiring the use of $17,303 of Economic
Development Funds was completed during the fiscal year.
The Town is in the seventh year of a new housing rehabilitation grant / loan program that utilizes funds
derived from former programs that produced loan program income. Participants that meet income
requirements are eligible for projects involving owner occupied housing. A total of $4,694 was expended
this past fiscal year, with $307,471 as the available balance. In May 2006, $250,000 of this available
program income was designated by the Town Council for home ownership activities in the Village Street
neighborhood. Of the $250,000 designation, $7,265 was expended to date, leaving $242,735 unexpended.
On June 1,2010, the Town Council reclassified this unexpended designation to fund phase III reconstruction
improvements to Prospect Street.
The Town Council approved funding totaling $182,050 for the demolition of certain foreclosed, blighted or
fire damaged properties at Ward, Lawrence and High Streets, due primarily to public safety concerns; in
addition to assisting the properties return to a collectable tax status.
Public Safety:
The fire department's 161 members, the largest volunteer force in the state, enable the town to apply the
savings from personnel costs to equipment needs. Although the members are not employees, the Town has
recognized their commitment to protecting the lives and property of our residents, and has established a
Length of Service Award Program (LOSAP). This is a non-qualified employer retirement plan that
commenced on January 1, 2000. To attain normal retirement, a minimum often years of credited service is
required, with maximum credited service of thirty years. Since inception, the Town has made its employer
contribution to an investment fund set up exclusively for this program as follows:
Year
2000 through 2007
December 31, 2008
December 31, 2009
Employer
Contribution
$720,791
$83,206
$120,129
Roof replacement and bathroom renovations at the Hartford Turnpike company #1 fire station were recently
completed at a cost of $35,535. The fire department also utilized an additional appropriation of $45,000 for
"jaws of life' and related equipment. This equipment has already proven invaluable in recent emergency
rescues.
The Town has recently received several federal grants totaling $149,309 for two police department vehicles,
digital video equipment and in-car laptops and cameras; as well as partial grant funding for a hybrid vehicle
purchased in the prior year. The Town was also recently awarded a $300,000 COPS Tech grant to fund a
digital Police radio system. In addition, Emergency Management has fully expended a federally funded
equipment grants totaling $17,500.
11
For the animal control facility, there is a remaining allocation of $15,410 from a prior year $58,000
appropriation to enclose the dog runs and expand the shelter; as well as a $48,100 appropriation to construct
an incinerator and $17,000 for animal control shelter caging.
Recent prior year completed public safety projects include town funding for a police department evidence
room and photo lab, replacement of its emergency generator and installation of digital time clocks. Recent
prior year grants have funded firefighter and ambulance equipment, fire station improvements and
emergency management equipment.
Maintenance and development:
On November 2, 2004 voters approved a public improvement bond authorization, and since then the Town
has issued three general obligation bonds: $10,300,000 on February 15, 2007, $5,000,000 on February 1,
2008 and $720,000 on February 12, 2009. Bond anticipation notes of $740,000 were issued on February 3,
2010, and matured June 15, 2010. A new note of $740,000 was issued on June 15, 2010, and will be
permanently financed in January 2011. The authorizations / expenditures are as follows:
Amount Expended Expended
Project Authorized Current Year Cumulative
Roads; sidewalks; and bridge reconstruction $ 19,103,000 $ 1,268,919 $ 15,934,613
Improvements to waste treatment plant 1,295,000
Improvements to sewer system 1,211,000 1,055,536
Issuance costs 8,301 155,946
Accrued note interest 14,398 704,910
Total: $ 21,609,000 $ 1,291,618 $ 17,851,005
The roadway improvements include the reconstruction / repaving of 22 town roads, replacement of
sidewalks, installation of a storm drainage system at the Bolton Lake shores and the renovation of three (3)
bridges at Dart Hill Road, West Main Street and Bolton Road. Sidewalks have been constructed at Peterson
Road at a cost of$165,583. The sewer improvement projects have been completed and consist of relining a
critical sewer line on Route 30; sewer repairs at twenty (20) various roads; and the replacement of the Dart
Hill pump station equipment. The upgrade of the waste treatment plant, to meet or surpass designated
nitrogen limits, is in the early stages of design and has yet to commence. As of the winter of 2010, the
roadway improvement program is 95% complete. To address the rising pavement costs, the Town continues
to apply for offsetting grants, and has been awarded a $500,000 DECD CDBG grant to upgrade High Street
and two $500,000 DECD CDBG grants to upgrade Prospect Street. The efforts from the Vernon Department
of Public Works to complete several road projects, has saved the Town considerable costs.
In addition to the roadway improvement expenditures incurred by the Public Bond Improvements Fund
above, the town's Town Aid Road special revenue fund expended $160,784 during the year, including
$36,127 for paving of Phoenix Street and Dobson Road. In the Town's Capital Nonrecurring Expenditure
Fund, current year roadway improvement authorizations totaled $941,000. Of this amount, $141,000 will be
funded by a state LOCIP grant and $800,000 will be funded by an additional appropriation approved at fiscal
year-end. The State of Connecticut also provided most of the funding for roadway and sidewalk
improvements on a portion of Vernon Avenue; the project was completed in the summer of2009.
12
Construction work, funded by federal and state grants, continued for the River Street and Spring Street
Bridges. A $1,950,000, 80% federal / 20% state grant, funded the replacement of the Spring Street Bridge
that has just been completed at an approximate cost of $1.9 million. The $2,220,000 River Street Bridge
reconstruction project, funded by an 80% federal / 20% state grant, commenced in the Fall of 2009, and has
just been completed at a cost of approximately $1.5 million.
The Bolton Road Bridge reconstruction, completed at $986,754, was partially grant funded, while funding
of $1,182,000 for the replacement of the Phoenix Street Bridge was approved by referendum vote in
November 2008. Of this amount, $44,000 of local funding is available, and it is anticipated that a
$1,251,000, 10% state and 80% federal grant will fund the remainder, avoiding the need to issue debt.
Redesign costs of $24,464 for this bridge were incurred during the year, with reconstruction anticipated for
2011.
The Vernon Avenue Bridge was completed during 2010, with final design costs of $144,227 and
construction costs of $1,256,886. The project was funded by two 80% reimbursable federal grants, with
local funds required for the 20% match.
Design costs, estimated at $240,000, for the West Main Street Bridge are 80% federally funded and 20%
locally funded through the Public Bond Improvements Fund. $83,267 has been expended to date. The
reconstruction costs are estimated at $2,160,000; there is an 80% federal grant, and the $845,000
authorization included in the Public Bond Improvements Fund for design and reconstruction costs will cover
the local portion. Construction is anticipated for 2012.
The estimated cost for the replacement of the Main Street Bridge over the Tankerhoosen River is
$3,247,000. Funding for the replacement will be by an 80% federal grant, with the remaining 20% locally
funded. Local funds currently appropriated total $250,000, with the remaining sources for the local
appropriation to be identified, as a November 2008 referendum to authorize such funding was unsuccessful.
During the fiscal year several appropriations funded the purchase of new refuse and recycling tote containers
for the Town's newly implemented automated refuse and single stream recycling program. Available funds
in the Town Capital Nonrecurring Fund were utilized to fund the $279,000 purchase of refuse tote
containers; and the $170,740 purchase of recycling tote containers. These costs are to be reimbursed to the
Fund from the General Fund in ensuing fiscal years. In addition, a federal grant was obtained to fund the
$108,756 purchase of additional recycling containers. To support this new program, the Town Council re-
designated $100,000 of available funds in the Town Capital Nonrecurring Fund to fund the purchase of two
used automated side-loading refuse / recycling trucks; and authorized the use of Town Capital Nonrecurring
Funds to fund the $214,839 purchase of a new automated side-loading refuse truck. An additional re-
designation of $60,000 was used to construct a new transfer station compactor to handle the additional
recyclable collections.
Also during the fiscal year, $90,036 was expended for eleven GPS chemical control units for use in snow /
ice removal. There are several appropriations available in the Town Capital Nonrecurring Fund including
$25,000 for sidewalk renovations and $40,000 for design of the Dart Hill Road bridge reconstruction project.
The Town continues to address major rolling stock demands in an effort to replace equipment and vehicles
that have met their useful life. Besides being better equipped to serve the residents ofVernon, a favorable
result of this effort is the reduction to overall maintenance budgets for the subsequent year.
13
In fiscal year 2009-2010, the Town purchased an Animal Control vehicle ($19,898), a used back hoe for
Parks and Recreation ($44,725), three police cruisers ($67,500); a used fire department vehicle ($2,495); a
fire department trailer ($3,633); and a trailer for park and recreation ($3,789). Also an appropriation of
$27,700 is available for a new Public Works pickup truck. Also, debt service payments of $207,114 and
$386,535, respectively, were made to prepay the entire balance oflease payments for the acquisition of three
(3) new dump trucks and one (1) refuse packer; and for a sweeper, vac-all and a recycling truck. The cost of
these items was incorporated into lease purchase agreements of $476,280 and $470,000, respectively.
The ambulance services account is in the Special Revenue Fund and a reserve to periodically replace each of
the three ambulances is maintained. Reserves, accumulated over the past several years, were used to fund
the replacement of all three ambulances. The current reserve balance in the Fund is $40,000.
Bolton Lakes Wastewater Disposal: The Town of Vernon and the neighboring Town of Bolton entered into
a consent order with the Connecticut Department of Environmental Protection (CTDEP) on October 14,
1999, requiring the towns to take the necessary steps to address wastewater disposal alternatives for the
Bolton Lakes area. The design and construction costs of a sewer system are estimated to be $21,959,000,
with 29% or $6,368,000 attributable to Vernon and the remainder to Bolton. Federal and state grants are
estimated to offset approximately 52% of the costs, reducing Vernon's share to $3,066,750, prior to the levy
of assessments. Voters in both towns approved a special referendum held on September 27,2005, regarding
ordinances that guarantee funding for the project. Plans and funding applications are now complete.
Construction, which is to be phased in over a five-year period to maximize grant-funding sources,
commenced in the Bolton area in the spring of 2009, and continued during the current year. Project work is
not anticipated to commence in Vernon until 2012.
Parks and Recreation:
Recreation programs remain very popular with our residents as demand and participation increases. The
town has 570 acres dedicated to recreation, which consist of 23 parks, 35 miles of trails, two pools, two
beaches on lakes providing swimming, a camp, boat launch, picnic areas, and fishing and ice skating.
Additionally, the Town has a teen center, numerous playgrounds, baseball and softball diamonds, soccer
fields, and tennis and basketball courts. The department is also responsible for maintaining the athletic fields
throughout the public school system, which includes a lighted football field and track.
Improvements to Rockville Central Park were recently completed at a cost of $715,112. The project was
funded by federal and state grants. In addition, a $90,800 federal grant to fund design enhancements in the
Talcottville section of town was completed, as did park improvements at Valley Falls Park. Renovations to
Horowitz Pool were completed at a cumulative cost of $61,233 to date. A $300,000 state Contingency
Needs grant to fund renovations at the Community Arts Center commenced last fiscal year with cumulative
design costs incurred of $68,968. An additional $1,500,000 state Urban Act grant was recently awarded for
construction renovations to the Arts Center. The state also granted the Town a $283,000 grant to fund
restoration of the Vernon Historical Society Grange that was completed during the year. Work continued on
the Rockville Downtown and Train Depot and Mill rails-to-trails projects, which are funded by two federal
grants totaling $51,870. Three tree grants totaling $6,368 were received during the fiscal year to fund
replacement of historic trees at Talcott and Henry Parks. The Town Council approved $4,800 from the
Downstream Fund to finance a Baseline Aquatic Study of the Dobsonville, Talcottville, Valley Falls and
Eckers Ponds and Walkers Reservoir; and an additional $6,000 was approved to fund an invasive aquatic
weeds treatment at Lower Bolton Lake and neighboring water bodies.
14
Recent prior years' park improvements include replacement ofrestrooms at Valley Falls Park, renovations to
Valley Falls Barn, trail improvements, improvements at Talcott Park, and sandblasting, painting and
replacing the filter system at the Community Pool. In FY 2011, the Parks Department expended $11,400 for
new refuse and recycling receptacles.
Education:
On March 29, 2005, voters approved three referenda questions for the renovations to school buildings and
facilities and since then the Town has issued three school b o n d ~ : $2,515,000 on February 15, 2007;
$16,040,000 on February 1, 2008; and $10,155,000 on February 12, 2009. Bond anticipation notes of
$2,970,000 were issued on February 3, 2010, and matured June 15, 2010. A new note of $2,970,000 was
issued on June 15, 2010, and will be permanently financed in January, 2011. The authorizations and
expenditures are as follows:
Amount Expended Expended
Project Authorized Current Year Cumnlative
Rockville High School - Additions & renovations $ 34,657,000 $ 1,171,833 $ 28,247,857
Vernon Center Middle School- Renovations 11,519,000 30,391 10,727,053
Center Road School 4,420,600 2,724,935 4,245,802
Lake Street School 5,828,800 23,442 4,953,588
Maple Street School 3,743,200 1,897,026 2,626,236
Northeast School 3,556,000 1,718,964 2,921,312
Skinner Road School 4,597,400 21,831 4,007,687
Total Elementary Schools - Additions and renovatio 22,146,000 6,386,198 18,754,625
Issuance costs 35,297 254,466
Accrued note interest 28,502 1,014,030
Total: $ 68,322,000 $ 7,652,221 $ 58,998,031
A school building commission that was formed as of December 6, 2005, has oversight of the projects, and
works closely with the architect, a construction management firm, and the administration. The recorded state
progress payment reimbursements received as of June 30, 2010, is $23,776,223.
In addition to the school bond improvement authorization, a $333,000 prior year appropriation in the
Education Capital Nonrecurring Expenditure Fund to repair and repoint the Board of Education
administration building continued during the year and is nearly completed. Project costs to date are
$272,878. A year-end transfer of $394,000 from the fiscal year 2009/10 education operating budget to the
Education Capital Nonrecurring Fund provides current available resources in this Fund for future education
projects totaling $527,779. The Town Capital Nonrecurring Fund provided $39,625 to fund the recently
completed Lake Street School ADA playscape project.
15
Long-Term Financial Planning
The Town did not issue any long-tenn debt during the fiscal year, but intends to pennanently finance
$6,270,000 of short-tenn outstanding debt in January 2011. This is intended to be the final general
obligation bond issue to fund and complete the remaining public and school bond improvement projects,
which commenced in fiscal year 2005. The Town Council authorized the prepayment of three capital leases
by utilizing $701,298 of available funds in the Town Capital Nonrecurring Fund.
We will continue to revise the six-year capital improvement plan to address community demands,
understanding that the budgetary constraints imposed by varied economic factors requires the diligent pursuit
of grants and alternative resources to fund capital needs.
Relevant Financial Policies
The Town's financial policies have been applied consistently with the prior year and had no notable current
year effect on the financial statements. There were no developments at the State level that impacted the
current year financial statements.
Awards
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the Town of Vernon for its
comprehensive annual financial report (CAFR) for the year ended June 30, 2009. The Certificate of
Achievement is a prestigious national award recognizing confonnance with the highest standards for
preparation of state and local government financial reports. In order to be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently organized comprehensive
annual financial report, whose contents confonn to program standards. The CAFR must satisfy both
generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. Vernon has received a Certificate of
Achievement for the last fifteen consecutive years. We believe that our current report continues to meet the
Certificate of Achievement program's requirements, and we are submitting it to the GFOA to detennine its
eligibility for another certificate.
Acknowledgements
The preparation of this report on a timely basis could not have been accomplished without the professional,
efficient services of the dedicated members of the Finance Department. The preparation of a Comprehensive
Annual Financial Report requires a major effort and I would like to extend special recognition to
Frank J. Zitkus, Controller; and to express my appreciation for each of the following members of the
department who assisted and contributed to the preparation of this report:
Penny Calcasola Payroll Coordinator
Diane Luddecke Budget Analyst
Raelene Phillips Accountant
Beverly States Assistant Treasurer
16
I would also like to thank the staff of Kostin, Ruffkess & Company, LLC, for their assistance and review of
the document. And finally, we acknowledge the Mayor, the Town Administrator, and the members of the
Town Council for their continued interest and support in planning and conducting the financial operations of
the Town in a responsible and progressive manner.
. Respectfully submitted,
~ ~ ~ P & t B P
. James M. Luddecke .
Finance Officer and Treasurer
17
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town ofVemon
Connecticut
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2009
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual fmancial
reports (CAFRs) achieve the highest
standards in government accounting
and fmancial reporting.
President
aL.. ... x'..JI .. - R#. ~ . '..
,""7' i ~
Executive Director
18
Financial
Section
Pond View Corporate Center
76 Batterson Park Road
Farmington, CT 06032-2571
b:OSTIN,
R - ~ ~
Business Advisors and Certified Public Accountants
Farmington, CT New London, CT
Springfield, MA
Main Line:
Toll Free:
Fax:
Web:
(860) 678-6000
(800) 286-KRCO
(860) 678-6110
www.kostin.com
INDEPENDENT AUDITORS' REPORT
Town Council
Town of Vernon, Connecticut
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the Town of Vemon, Connecticut,
as of and for the year ended June 30, 2010, which collectively comprise the Town's basic financial statements
as listed in the table of contents. These basic financial statements are the responsibility of the Town's
management. Our responsibility is to express opinions on these financial statements based on our audit
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to fmancial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the basic financial statements are free of material
misstatement. An auditincludes examining, on a test basis, evidence supporting the amounts and disclosures in
the basic financial statements. An audit also includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall basic financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
fmancial position of the governmental activities, the business-type activities, each major fund, and the aggregate
remaining fund information of the Town of Vemon, Connecticut, as of June 30, 2010, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 27,2010,
on our consideration of the Town's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of that
report is to describe the scope of our testing of internal control over financial reporting and compliance and the
results of that testing, and not to provide an opinion on the internal control over financial reporting or on
compliance. That report is an integral part of an audit performed in accordance with Government Auditing
Standards and should be considered in assessing the results of our audit.
The Management Discussion and Analysis, on pages 21 through 35 the General Fund Budgetary comparison
information, Schedule of Funding Progress and Schedule of Employer Contributions - Vemon Retirement
System, and Other Postemployment Benefit Plan on pages 92 through 105, respectively, are not a required part
of the basic fmancial statements but are supplementary information required by Governmental Accounting
Standards Board. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
19
Members of:
Leading Edge Alliance Kreston International Amencan Instltule of Certified Public Accountants
An Equal Opporlunlly Employer

& COMPANY. LLC
Town ofVemon, Connecticut
Page Two
Our audit was conducted for the purpose of fonning opinions on the financial statements that collectively
comprise the Town of Vernon, Connecticut's basic fmancial statements. The introductory section and the
accompanying fmancial infonnation listed as supplemental schedules in the table of contents are presented for
purposes of additional analysis and are not a required part of the basic financial statements. The combining
fund financial statements and other schedules as listed in the table of contents have been subjected to the
auditing procedures applied in the audit of the basic financial statements and, in our opinion, are fairly stated in
all material respects in relation to the basic financial statements taken as a whole. The introductory section and
statistical section have not been subjected to the auditing procedures applied in the audit of the basic financial
statements and, accordingly, we express no opinion on them.
Farmington, Connecticut
December 27,2010
20
OFFICE OF THE
FINANCE DEPARTMENT
TOWN OF VERNON
14 PARK PLACE, VERNON, CT 06066
Tel: (860) 870-3690
Fax: (860) 870-3587
E-mail: jluddecke@vemon-ct.gov
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2010
This discussion and analysis of the Town of Vernon, Connecticut's (Town) financial perfonnance is
provided by management to provide an overview of the Town's financial activities for the fiscal year
ended June 30, 2010. Please read this MD&A i ~ conjunction with the transmittal letter and the Town's
financial statements, Exhibits A to J.
FINANCIAL HIGHLIGHTS
The Town's total net assets increased as a result of this year's operations. Net assets of our business-
type activities increased by $556 thousand, or 3.73%; while net assets of our governmental activities
increased by $3.682 million, or 3.62%.
During the year, the Town generated taxes and revenues that were $3.682 million more than the
$91.494 million in expenses and transfers for governmental activities.
In the Town's business-type activities, revenues increased to $6.24 million (or by 5.1%) while
expenses decreased to $5.69 million (or by 4.5%).
"Total combined cost of Town governmental and business activities decreased by $2.21 million from
$99.39 million to $97.18 million. ."
The General Fund reported a fund balance this year of $10.43 million, inclusive of unreserved,
undesignated fund balance in the amount of $8.27 million.
On June 15, 2010, bond anticipation notes of $3.710 million were issued, allocated as follows: $740
thousand for public improvements and $2.970 million for improvements to school facilities.
The resources available were $521 thousand more than expenditures for the General Fund. This was
accomplished by effectively managing appropriations by means of spending and hiring controls,
increased collection of service charges and the collection of current and prior taxes.
The tax collection rate against the original levy was 98.7%.
21
OVERVIEWOF THE FINANCIAL STATEMENTS
This annual report consists of a series of financial statements. The statement of net assets and the
statement of activities (Exhibits A and B, respectively) provide information about the activities of the
Town as a whole and present a longer-term view of the Town's finances. Fund financial statements are
presented in Exhibits C to J. For governmental activities, these statements tell how these services were
financed in the short-term as well as what remains for future spending. Fund financial statements also
report the Town's operations in more detail than the government-wide statements by providing
information about the Town's most significant funds. The remaining statements provide financial
information about activities for which the Town acts solely as a trustee or agent for the benefit of those
outside of the government.
Government-Wide Financial Statements
The analysis of the Town as a whole begins with Exhibit A and B, found in the Basic Financial Statements
section of this report. The statement of net assets and the statement .of activities report information about
the Town as a whole and about its activities for the current period. These statements include all assets and
liabilities using the accrual basis of accounting, which is similar to the accounting used by most private-
sector companies. All of the current year's revenues and expenses are taken into account regardless of
when cash is received or paid.
These two statements report the Town's net assets and changes in them. The Town's net assets, the
difference between assets and liabilities, are one way to measure the Town's financial health, or financial
position. Over time, increases or decreases in the Town's net assets are one indicator of whether its
financial health is improving or deteriorating. The reader needs to consider other non-financial factors,
however, such as changes in the Town's property tax base and the condition of the Town's capital assets,
to assess the overall health of the Town.
In the statement of net assets and the statement of activities, we divide the Town into two types of
activities:
Governmental activities - Most of the Town's basic services are reported here, including
education, public safety, maintenance and development of streets and buildings, sanitation, human
services, recreation, public improvements, community planning and development, and general
administration. Property taxes, charges for services, and state and federal grants finance most of
these activities.
Business - type activities - The Town charges a fee to customers to help it cover all or most of the
cost of certain services it provides. The Town's operation of the wastewater treatment facility and
rentals at Center 375 are reported here.
22
Fund Financial Statements
The fund financial statements begin with Exhibit C and provide detailed infonnation about the most
significant funds - not the Town as a whole. Some funds are required to be established by Charter.
However, the Town Council establishes many other funds to help control and manage financial activities
for particular purposes (like the Ambulance Services Fund, Sewer Assessments Fund, and Cemetery
Operations) or to show that it is meeting legal responsibilities for using funds for those purposes, and other
money (like grants received for education from the State and Federal governments and accounted for in
the Special Revenue Fund). The Town's funds are divided into three categories; governmental,
proprietary and fiduciary.
Governmental funds (Exhibits C, D and E) - Most of the Town's basic services are reported in
governmental funds, which focus on how money flows into and out of those funds and the balances
left at year-end that are available for spending. These funds are reported using an accounting
method called modified accrual accounting, which measures cash and all other financial assets that
can readily be converted to cash. The governmental fund statements provide a detailed short-tenn
view of the Town's general government operations and the basic services it provides.
Governmental fund infonnation helps you detennine whether there are more or fewer financial
resources that can be spent in the near future to finance the Town's programs. The relationship (or
differences) between governmental activities (reported in the statement of net assets and the
statement of activities) and governmental funds is described in a reconciliation at the bottom of the
fund financial statements.
Proprietary funds (Exhibits F, G and H) When the Town charges customers for the services it
provides, whether to outside customers or to other units of the Town, these services are generally
reported in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the statement of net assets and the statement of activities. In fact, the Town's enterprise
funds (a component of proprietary funds) are the same as the business-type activities reported in
the government-wide statements, but provide more detail and additional infonnation, such as cash
flows, for proprietary funds. Internal service funds (the other component of proprietary funds) are
used to report activities that provide supplies and services for the Town's other programs and
activities - such as the Town's Data Processing Internal Service Fund.
Fiduciary funds (Exhibits I and J) - The Town is the trustee, or fiduciary, for its employees'
pension plans. It is also responsible for other assets that, because of a trust arrangement, can be
used only for the trust beneficiaries. All of the Town's fiduciary activities are reported in separate
statements of fiduciary net assets and changes in fiduciary net assets. These activities are excluded
from the Town's other financial statements because the Town cannot use these assets to finance its
operations. The Town is responsible for ensuring that the assets reported in these funds are used
for their intended purposes.
23
GOVERNMENT-WIDE FINANCIAL ANALYSIS
The Town's combined net assets increased from a year ago from $116.6 million to $120.8 million. The
analysis below focuses on the net assets (Table 1) and changes in net assets (Table 2) of the Town's
governmental and business-type activities.
TABLE 1
NET ASSETS
JUNE 30, 2010 AND 2009
In Thousands
Governmental
Activities
Business-Type
Activities Total
2010 2009 2010 2009 2010 2009
Current and other assets $ 27,439 $ 36,453
Capital assets, net of accumulated
$ 5,312 $ 4,703 $ 32,751 $ 41,156
195,285
154,129
196,316
163,565 10,694
15,397 16,656
11,344 143,435
179,888 Total assets 179,660
---'------'---
depreciation, as restated 152,221

59,954 __
15,511 15,072
75,465 78,672 887
427
460 765
437
1,202
63,140
14,645
77,785
Non-current liabilities outstandinl 59,189
---'------'---
I
Other liabilities 15,074

Total liabilities 74,263
---'--'-'-----'---
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted, 2009 as restated
93,272
7,961
4,164
81,074
10,827
9,814
11,344
4,110
10,694
4,204
104,616
7,961
8,274
91,768
10,827
14,018
Total Net Assets $ 105,397 $ 101,715 $ 15,454 $ 14,898 $ 120,851 $ 116,613
Governmental Activities
Net assets of the Town's governmental activities increased by $3.682 million or 3.62%, ($105.397 million
compared to $101.715 million, as restated). Unrestricted net assets - the part of net assets that can be
used to finance day-to-day operations without constraints established by debt covenants, enabling
legislation, or other legal requirements - changed from $9.814 million, as restated at June 30, 2009, to
$4.164 million at the end of this year.
The change in governmental net assets resulted primarily because of the following factors:
1) The decrease of $9.014 million in current and other assets is primarily due to the purchase and
construction of capital assets of$13.058 million during the year.
24
2) Capital assets, net of accumulated depreciation, increased by $8.786 million and that change is a
combination of the addition of current year capital purchases and construction in progress, against
the depreciation expense of existing assets.
3) Long-term liabilities decreased by $3.951 million, including the retirement of long-term debt of
$4.112 million and a net decrease of $331 thousand to retirement I compensated employee
absences liabilities, offset by an increase in the Net Other Post Employment Benefit Obligation of
$454 thousand and an increase in long-term claims payable of$38 thousand.
4) Current liabilities increased by $429 thousand, due mostly to a $700 thousand increase in the
current portion of long-term debt, offset partially by a $390 thousand decrease in year-end
accounts payable.
The largest portion of the Town's net assets, $93.272 million or 88.5%, reflects its investment in
capital assets, less any related debt used to acquire those assets that is still outstanding. The Town uses
these capital assets to provide services to residents; consequently, these assets are not available for
future spending. An additional portion of the Town's net assets, $7.961 million or 7.5%, represents
resources that are subject to restrictions on how they may be used.
Business Type Activities
In 2010, the net assets of business-type activities increased by $556 thousand or 3.73%, ($15.454 million
compared to $14.898 million, as restated). The majority of this change includes an increase in sewer use
charges of $367 thousand, due primarily to a 7.6% increase in sewer use rates, and a reduction of expenses
from the prior year of $222 thousand. Center 375 rental rates increased by $2 thousand from the prior
year, yet the Fund experienced a $24 thousand decrease in net assets. Although there are unrestricted net
assets of $4.110 million, these funds however, cannot be used to make up for any decreases reported in
governmental activities. The Town generally can only use these net assets to finance the continuing
operations ofthe wastewater treatment facility and Center 375.
The Town's total revenues (including transfers of $36 thousand) were $101.417 million. The total cost of
all programs and services (including transfers of $36 thousand) was $97.179 million. Our analysis below
separately considers the operations of governmental and business-type activities.
25
TABlE2
CHANGES INNEr ASSETS
InThousands
Governmental Business-Type
Activities Activities Total
2010 2009 2010 2009 2010 2009
Revenres:
Program revenres: $ - $
Cbarges for services 4,562 4,355 6,195 5,827 10,757 10,182
Operating grants and
contributions 30,313 28,579 30,313 28,579
Capital grants and
contributiorn 3,850 3,771 3,850 3,771
General revenues:
Property taxes 54,100 51,723 54,100 51,723
Grants and contributions rot
restricted to specific program; 1,259 1,606 75 1,259 1,681
Investment income 192 213 10 39 202 252
Msce1laneous 900 965 900 965
Transfers 36 36
Total revenues 95,176 91,212 6,241 5,941 101,417 97,153
Programexpenses:
General govmnnent 6,003 5,544 6,003 5,544
Commmityani developrrert 1,632 874 1,632 874
Public safety 12,144 12,569 12,144 12,569
Maintenance anddevelopment 9,435 10,285 9,435 10,285
HUilllnservices 1,446 1,463 1,446 1,463
Park, recreation, and culture 2,487 2,332 2,487 2,332
Education 56,255 58,265 56,255 58,265
Interest on long-tenndebt 2,056 2,098 2,056 2,098
Sewer 5,488 5,710 5,488 5,710
Rental 197 245 197 245
Transfers 36 36
Total programexpenses 91,494 93,430 5,685 5,955 97,179 99,385
Increase (decease) innet assets $ 3,682 $ (2,218) $ 556 $ (14) $ 4,238 $ (2,232)
26
As noted earlier, net assets from governmental activities increased $3.682 million. Since the Town began
preparing a statement of net assets as of June 30,2003, this is the fifth increase in the eight-year period.
On the revenue side, key factors to the overall increase were as follows:
Property tax revenues, which comprises 56.8 percent of the Town's governmental activities
revenues, includes the current levy, prior year levies, and interest, increased by $2.377 million or
4.60%. This is attributed to growth in the grand list; and an "effective" increase in the mil rate of
3.83%, when factoring the final year of a three-year phase-in.
Charges for services increased by $207 thousand, due to increased town clerk receipts of $129
thousand, ambulance emergency medical service fees of $52 thousand, recreation program receipts of
$24 thousand and cafeteria food sales of $41 thousand, offset partially by decreases to sewer
connections of $45 thousand and various town services.
Operating grants and contributions increased by $1.734 million, including increased special
education grants of $866 thousand and increased cafeteria grants of $98 thousand.
Grants and contributions not restricted to specific programs decreased by $347 thousand.
Capital grants and contributions increased by $79 thousand.
Unrestricted investment earnings decreased by $21 thousand, reflecting the decrease in overall
interest rates.
For governmental activities, expenses decreased $1.936 million, or 2.07%, from the previous year. Of the
total expenditures of $91.494 million, 61.5% are for educational services; 13.3% for public safety; 10.3%
for maintenance and development; and 6.6% for general government.
Major expense factors include:
The cost of educational services decreased by $2.010 million due primarily to the disposal of
equipment in the prior year of approximately 1.767 million.
General government costs increased by $459 thousand, due primarily to wage adjustments and
increased health insurance costs.
Public Safety costs decreased by $425 thousand for police, fire and ambulance coverage due
partially to reduced pension costs and reduced health insurance costs, the result of vacancies; offset
by cost increases due to wage adjustments.
Maintenance and development costs decreased by $850 thousand due to decreased equipment and
building maintenance costs, a lesser amount of road repairs and decreased refuse collection
expenses.
Interest on long-term debt decreased by $42 thousand.
27
Table 3 presents the cost of each of the Town's five largest programs - education, public safety, town
wide, (which includes items such as benefits and property insurance), maintenance and development of
streets and buildings, general government administration, and all other services - as well as each
program's net cost (total cost'less revenues generated by the activities). The net cost shows the financial
burden that was placed on the Town's taxpayers by each of these functions.
TABLE 3
GOVERNMENTAL ACTIVITIES
In Thousands
Total Cost of Services Net Cost of Services
2010 2009 2010 2009
Education $ 56,255 $ 58,265 $ 25,552 $ 27,884
Public safety 12,144 12,568 10,832 11,342
Maintenance and development 9,435 10,285 6,274 9,051
General government 6,003 5,544 4,661 3,326
Interest on long-term debt 2,056 2,098 1,698 1,741
All others 5,601 4,670 3,716 3,382
Totals $ 91,494 $ 93,430 $ 52,733 $ 56,726

Revenues of the Town's business-type activities (see Table 2) increased by 5.1 percent, or $300 thousand,
($6.24 million in 2010 compared to $5.94 million in 2009) and expenses decreased by 4.5 percent or $270
thousand. The factors influencing these results: There was an increase in sewer use charges of $367
thousand, the result of a 7.6% increase in sewer rates on October 1, 2009, rental fees at Center 375
increased by $2 thousand and there was a decrease of $29 thousand in investment income.
The decrease in expenses of $270 thousand is affected by an increase in utility costs of $35 thousand and
an increase in depreciation expense of $27 thousand; offset by a reduction in wage and benefit costs of $72
thousand and of $232 thousand in other operating costs including repair and maintenance, supplies and
materials and general and administrative.
28
TOWN FUNDS FINANCIAL ANALYSIS
Governmental Funds
As the Town completed the year, its governmental funds (as presented in the balance sheet - Exhibit C)
reported a combined fund balance of$14.52 million, which is a decrease of$7.26 million from last year's
total. Of total fund balance, $12.22 million is reserved because it has been committed to liquidate
purchase orders, is set aside for capital projects and equipment, trust funds, special assessment debt service
and inventory.
Included in this year's total change in fund balance is an increase of$521 thousand in the Town's General
Fund. The unreserved and undesignated fund balance, which committed $295 thousand for encumbrances
more than the prior year, reflects an overall increase of $226 thousand. The unreserved and undesignated
fund balance of the General Fund at June 30, 2010 is $8.271 million, which represents 10.51% of
estimated revenues for the ensuing year. Maintaining adequate fund balance reserves allows the Town
flexibility when budgets are restricted and prevents cash flow problems and the related costs that can
result. It is essential to have reserves available to provide funding support for major capital projects that
await reimbursement from grant or bond proceeds. Also, income earned by keeping the funds invested
assists in limiting the need for future tax increases. The primary reasons for the General Fund's increase
include some of the areas discussed in the governmental activities analysis, highlights on the following
page, and as reported in Exhibit D.
The decrease in fund balance of the town's other major governmental funds, the Public Bond
Improvement and School Bond Improvement Funds, totaled $7,622,644 for the fiscal year due to project
expenditures exceeding bond and other proceeds. The resulting fund balance deficit totaling $4,088,842
(School Bond Improvement Fund) will be funded by future bonding and intergovernmental proceeds. The
Debt Service Fund collects annual contributions from area municipalities equal to their share of annual
debt service payments relative to the latest upgrade to the Waste Treatment Plant (WTP) facility. The
Town's annual contribution of the WTP debt service is transferred in from the General Fund. The Debt
Service Fund receivable balance represents area municipality future debt service contributions.
In addition, other changes in fund balances in Nonmajor Governmental Funds should be noted: in the
Special Revenue Fund there was an increase of $193 thousand, with gains of $12 thousand in the
Ambulance Medical Services, $87 thousand in the Sewer Connection, $46 thousand in the Town Aid
Road, $85 thousand in Adult Education and $32 thousand in the Parks and Recreation Programs Funds
and losses of $4 thousand in the Cafeteria, $35 thousand in the Economic Development, $25 thousand in
the Special Education Grants, $15 thousand in the Sewer Assessments and $17 thousand in Miscellaneous
Grants Funds. The Nonmajor Capital Projects Fund had a decrease of $460 thousand including a gain in
the Education Capital Non-Recurring Fund of $130 thousand and a loss in the Town Capital Non-
Recurring Fund of $591 thousand. Design and construction costs of the other Nonmajor capital projects
funds were fully funded by federal and state grants; and the Permanent Trust Fund increased by $107
thousand due primarily to investment performance in the cemetery and school memorial trusts.
29
Proprietary Funds
The Town accounts for five proprietary funds, two as Business-Type activities and three as Governmental
Activities - Internal Service Funds, which are reported in Exhibits F, G and H. The Sewer User Fund and
Center 375 are established as self-supporting Business-Type activities that reported a change in assets that
amounted to a $557 thousand increase. The Sewer User Fund is established for the operation and
maintenance of the wastewater treatment plant. Quarterly bills for sewer usage and interest earned on
investments generate its resources. The net increase to the Sewer User Fund net assets is $581 thousand.
This increase is a result of increased fees of $169 thousand, a $36 thousand capital contribution, and a
reduction of expenses of $223 thousand, including reduced wages and benefits of $82 thousand. The
sewer user rates increased on October 1, 2009 by 7.6%, from $5.29 to $5.69 per 1,000 gallons of metered
water, yielding an additional $198 thousand in revenue. The October 1, 2010 sewer user rate was not
increased. The plant is in the thirteenth year of operation since major renovations, and the facility itself is
reported in the General Government activities.
Center 375 is a former elementary school renovated for the rental of office space to private firms and to
Town departments. The renovation was conducted in a manner that would enable the Town to restore the
building back to a school if enrollments so demanded. The result of the year's activity decreased net
assets by $24 thousand.
The Internal Service Fund is supported by department budgets. The Data Processing Fund serves both
the Town and school administrations, which equally support its operating expenses. The future needs of
the department require continual upgrades to the various computer systems, as well as maintaining a
network for sharing common software and databases. Net assets decreased by $31 thousand as a result of
operations. The Workers' Compensation Fund provides for self-insurance of workers' compensation
and is supported by contributions from the General and Sewer User Funds, as well as investment income.
For fiscal year-end June 30, 2010, expenses exceeded revenues by $100 thousand, increasing the prior
year net assets deficit from $966 thousand to a deficit of $1.066 million. Claims incurred for fiscal year
200911 0 decreased significantly from the prior year from $1.285 million to $431 thousand. The allocation
of adequate contributions in the next year to meet financial demands is based on actual experience. The
Medical Self-Insurance Fund, which became effective January 1, 2006, provides medical prescription
coverage for employees and retirees. Effective July 1, 2007, dental coverage for general government
employees and retirees became self-insured. The fund is supported by contributions from all covered
participants and employer contributions. Contribution amounts are based upon historical experience of
claims incurred and paid, and'third-party administrators process the claims. At June 30, 2010, net assets
were $31 thousand, a reduction of $57 thousand from the prior year.
General Fund Budgetary Highlights
Differences between the original budget and the final amended budget amounted to an increase of $4.073
million. Included in this amount is $1.465 million of encumbrances carried forward from the previous
fiscal year and $2.608 million of current year budget amendments that can be classified as follows:
30
Pass-through additional appropriations are those supported by revenue and other sources, amounting to
$1.209 million during the year, with the majority of that amount, $876 thousand related to excess special
education grants and school use activities; $151 thousand for collections remitted to the state of
Connecticut by the Town Clerk for the farmland and historic preservation act; $21 thousand for youth
service part-time wages; $6 thousand for permit refunds; and $101 thousand in police special services pay.
Although these additional appropriations had a revenue funding source, they were legally appropriated
from fund balance.
Other additional appropriations amounting to $1.400 million were taken from net assets for items such as
roadway improvements, $800 thousand; other capital improvements, $255 thousand (including $172
thousand for land acquisition and $61 for demolition) legal fees, $147 thousand; police vehicles, $72
thousand; park maintenance costs, $48 thousand; snow removal costs, $65 thousand; and miscellaneous
costs, $13 thousand.
Actual final expenditures totaled $76.81 million and can be summarized as follows. The budgetary
unexpended, unencumbered resulted in a favorable amount of $1.516 million. Contained within this
amount is $801 thousand returned from the school system comprised mainly of savings in special
education program costs; building / plant operations; wages for overtime and temporary help, along with
vacancies due to retirements; and purchasing refinements. Police and refuse collection services had
favorable variances of $204 thousand and $110 thousand, respectively, due primarily to hiring deferrals of
vacancies. At mid-year the Town was facing costs in excess of the planned resources due to a projected
shortfall of $509 thousand in State aid and investment income, in addition to a proposal by the State of
Connecticut to reduce operating grants to municipalities. The Town's General Government implemented
a conditional spending freeze and did not replace vacancies. Although the State resolved not to reduce
grants, the Town continued the freeze through the end of the fiscal year to address items referred to in the
additional appropriations section and to provide for road projects, the retirement of capital leases, and an
additional contribution to the defined benefit pension plan. This produced a net savings of $244 thousand
in wages, which was complemented by $471 thousand from non-wage budgets, most significantly medical
insurance, social security, refuse and recycling fees, diesel fuel, streetlights, legal notices, and other town
wide accounts.
On the revenue side, final actual revenues exceeded the original budget by $1.244 million due to favorable
(unfavorable) variances in the following categories: special education excess grants of $971 thousand;
with all other intergovernmental revenue below original estimates by ($441) thousand. Other revenues in
excess of estimates include $276 thousand in tax collections due to effective pursuit of current and prior
taxes; charges for services were above estimates by $479 thousand due in most part to the farmland
preservation surcharge, $168 thousand, police special services, $185 thousand, and school use fees, $60
thousand, which in turn are appropriated to cover the respective costs. Town Clerk recording fees were
above projections by $67 thousand. Licenses and permits were above projections by $4 thousand due
mainly to increased building permits, transfer station permits and zoning permits. The decrease in interest
rates produced a shortfall of ($68) thousand in investment income and transfers in from other funds were
below original estimates. Other revenue, which includes items such as insurance reimbursements and
proceeds from the sale of property, exceeded estimates by $20 thousand.
The Town's General Fund total of both revenue and expenditures differs from the amounts in Exhibit D
and as reported in the budgetary basis comparison in the required supplementary information by $3.523
million. This amount represents the on-behalf payments of the State of Connecticut contributions to the
Teachers' Retirement System.
31
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At June 30, 2010, the Town had $163.6 million invested in a broad range of capital assets, net of
depreciation, including land, buildings, park facilities, vehicles and equipment, roads, bridges, storm water
drainage and sewer lines (see Table 4). This amount represents a net increase (including additions and
deductions) of $9.4 million, or 6.1%, over last year.
TABLE 4
CAPITAL ASSETS AT YEAR-END (NET OF DEPRECIATION)
In Thousands
2010 2009 2010 2009 2010 2009
Land $ 8,382 $ 8,382 $ 1,268 $ 1,268 $ 9,650 $ 9,650
Buildings and improvements 24,331 25,278 1,755 1,626 26,086 26,904
Improvements other than building 1,946 2,028 58 65 2,004 2,093
Equipment 9,222 10,182 1,660 1,582 10,882 11,764
Infrastructure 26,810 27,956 5,947 6,153 32,757 34,109
Intangible - computer software 329 296 45 374 296
Construction in progress 81,200 69,313 611 81,811 69,313
Total $ 152,220 $ 143,435 $ 11,344 $ 10,694 $ 163,564 $ 154,129
Additions to total capital assets for the 2009-10 year were $13.42 million, net of construction-in-progress
reductions. Construction-in-progress of $81.81 million is for the following (in thousands):
Road & bridge reconstruction projects
Animal control facility expansion
School additions & renovations
Park improvements
Town office improvements
Sewer system improvements
32
$ 21,338
43
58,341
227
270
1,591
More detailed infonnation about the Town's capital assets is presented in Notes I C and III C to the
financial statements.
Long-term debt
At June 30, 2010 the Town had $55.24 million in bonds, notes, and lease purchase obligations outstanding
versus $58.65 million last year, a decrease of$3.41 million or 5.8% - as shown in Table 5.
TABLE 5
OUTSTANDING DEBT, AT YEAR-END
In Thousands
2010 2009 2010 2009 2010 2009
General obligation bonds
(backed by the Town) $ 44,840 $ 45,990 $ - $ $ 44,840 $ 45,990
Promissory notes 10,210 11,697 10,210 11,697
Lease purchases 188 964 188 964
Totals $ 55,238 $ 58,651 $
-
$ $ 55,238 $ 58,651
Bond anticipation notes $ 3,710 $ 3,710 $ - $ $ 3,710 $ 3,710
Long-tenn debt principal payments of$3.41 million were made during the year.
The Town's general obligation bond rating has been revised to Aa2 from A-I by Moody's Investors on
May 1, 2010, as part of a recalibration to a global rating scale. The rating is not an upgrade, according to
Moody's, but in essence an equivalent rating which has been assigned and re-affinned to the Town's debt
since 1994. The State limits the amount of general obligation debt that cities can issue, utilizing a fonnula
detennined under State Statutes based on type of debt and tax base. The Town's outstanding general
obligation debt is significantly below this $379.7 million state-imposed limit.
Other obligations include accrued vacation pay and sick leave. More detailed infonnation about the
Town's long-tenn liabilities is presented in Note III-F to the financial statements.
33
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
The Town's elected and appointed officials considered many factors when setting the fiscal-year 2010-
2011 budget tax rates and fees that will be charged for the business-type activities. One of those factors is ,
the economy. The unemployment rate for the Town at year-end was 8.4%, which is an increase from a
rate of 7.3% a year ago. This compares with the State's unemployment rate of 8.8% and the national rate
of9.6%.
Although inflation in the Northeast Urban area has consistently been more than the national Consumer
Price Index (CPI) for all urban consumers - U.S. towns' rate, the Town's CPI increase was 1.70% for
fiscal year 2010 compared with the average U.S. town rate of 1.05%.
These indicators were taken into account when adopting the General Fund budget for fiscal year 2011.
Total appropriations in the General Fund budget are $78.721 million, an increase of $2.631 million over
the original 2010 budget. Property taxes, supported by the growth of 0.21% in the net taxable assessed
valuation total $56.908 million, a revenue increase of $2.943 million from 2010 levels. In the next fiscal
year, the estimated aid from the State of Connecticut is expected to decrease by $191 thousand to $19.631
million, representing 24.9% oftotal revenue in the General Fund.
The Town will use these increases in revenues to finance programs currently offered and to offset the
effect that we expect price increases will have on program costs. Increased aid for the educational system, .
firefighting, technology, medical insurance, municipal insurance, and increasing the debt service budget to
provide for an anticipated bond issue and past issues; all constituted the major increases in the 2010-2011
budget. There was little in the way of new programs in the General Fund, with the exception of a
continuation of a policy concerning fuel conservation; the sharing of employees between several general
government offices; and the implementation of improved snow removal system and automated refuse and
recycling services. Health insurance plans for all employee bargaining groups have been further
redesigned to provide present and future budgetary relief, in addition to increasing the cost sharing to
participants; and procuring new providers through competitive negotiations. Technology advances are
well underway, most notably a town wide connectivity infrastructure, with the first phase to be completed
during 2010-2011. This is expected to improve departmental operations and to provide internal and public
access to information.
From a financial perspective and as detailed in this annual financial report, the Town of Vernon
successfully addressed the many financial obstacles of 2009-10 though prudent, conservative fiscal
management without a serious interruption of services. The 2010-11 Town budget experienced an overall
3.46% increase in appropriations and an increase in the tax rate from 28.42 to 30.02 mils. Understanding
the economic conditions; the anticipation of a new bond issue; and a projected decrease in revenue other
than taxes, a modest budgetary increase was accomplished. Vernon will continue to address the difficult
budgetary and economic times through sound management, well-managed fund balances and an active
attention to its economic development program.
34
As for the Town's business-type activities, we expect that the 2010-11 results will be favorable based on
the resolve of sewer network maintenance cost sharing; the inclusion of sewer network depreciation in the
sewer user rates; and the stabilization of the revenue stream, as sewer user rates did not increase for fiscal
year 2011. As in all areas, most especially the waste treatment facility, the elevated cost of energy
resources is a major concern and negotiations to lock in rates for three to five year terms have been
completed in an attempt to assure the future provision of utilities at a measured rate. To further this effort,
an investment to upgrade the plant's diffuser; replace the influent pump, and the ConServe electricity
efficiency work, have resulted in an immediate payback, reducing the electrical account by approximately
seven percent. The town is exploring fuel energy cells as a means to provide both heat and electricity to
the waste treatment facility. The increase in medical insurance is completely offset by the reduction of
one position. The projected expenditures have been decreased by 1.85%. Much attention has been given
in the past and will continue in the future to preserve favorable unrestricted net assets.
CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report is designed to provide citizens, taxpayers, customers, investors and creditors with a
general overview of the Town's finances and to show the Town's accountability for the money it receives.
If you have questions about this report or need additional financial information, contact the Finance
Department, Town of Vernon, 14 Park Place, Vernon, Connecticut 06066.
35
Basic Financial
Statements
STATEMENT OF NET ASS'ETS
JUNE 30, 2010
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTMTIES
EXHIBIT A
(lof2)
TOTAL
Current assets:
Cash .
Investments .
Receivables(net):
Property taxes .
IntergovernmentaL .
Other .
Internal balances ..
Other assets ..
Total current assets .
$ 1,781,299
16,041,574
773,383
4,301,418
2,236,780
(318,374)
114,692
24,930,772
$ 295,060
3,715,576
982,773
318,374
5,311,783
$ 2,076,359
19,757,150
773,383
4,301,418
3,219,553
114,692
30,242,555
Noncurrent assets:
Restricted assets (permanent):
Cash .
Investments .
Total Restricted assets ..
Receivables (net):
Property taxes .
IntergovernmentaL .
Total receivables (net) .
Capital assets (net of accumulated depreciation):
Land ..
Construction in progress .
Intangible assets (net of accumulated amortization) .
Buildings and improvements ; .
Improvements other than buildings '" .
Machinery and equipment. .
Infrastructure " .
Total capital assets (net of accumulated depreciation) .
Total noncurrent assets .
TOTAL ASSETS .
108,191 108,191
1,590,915 1,590,915
1,699,106 1,699,106
481,487 481,487
327,925 327,925
809,412 809,412
8,381,925 1,267,840 9,649,765
81,200,021 610,813 81,810,834
329,091 45,500 374,591
24,330,893 1,754,528 26,085,421
1,945,893 58,038 2,003,931
9,222,008 1,660,530 10,882,538
26,810,640 5,946,766 32,757,406
152,220,471 11,344,015 163,564,486
154,728,989 11,344,015 166,073,004
179,659,761 16,655,798 196,315,559
(Continued)
The notes to the financial statements are an integral part of this statement.
36
STATEMENT OF NET ASSETS
JUNE 30, 2010
EXHIBIT A
(20f2)
GOVERNMENTAL
ACTMTIES
LIABILITIES
BUSINESS-TYPE
ACTMTlES TOTAL
LIABILITIES:
Current liabilities:
Accounts payable .
Accrued payroll and related liabilities ..
Accrued interest payable .
Unearned revenue .
Bond anticipation notes .
Bond and notes payable ..
Capital lease payable .
Compensated absences ..
Retirement obligations .
Claims payable and other ..
Total current liabilities .
Noncurrent liabilities:
Bonds and notes payable and related liabilities ..
Capital lease payable .
Compensated absences .
Claims payable and other ..
Net OPEB obligation .
Total noncurrent liabilities .
TOTAL LIABILITIES .
NET ASSETS
$ 3,947,902
595,269
700,195
211,753
3,710,000
3,554,678
92,099
972,987
673,539
615,360
15,073,782
51,495,599
95,995
3,142,586
2,663,734
809,431
981,654
59,188,999
74,262,781
$ 638,921
126,325
765,246
419,935
16,346
436,281
1,201,527
$ 4,586,823
595,269
700,195
211,753
3,710,000
3,554,678
92,099
1,099,312
673,539
615,360
15,839,028
51,495,599
95,995
3,562,521
2,663,734
809,431
998,000
59,625,280
75,464,308
Invested in capital assets, net of related debt.. .
Restricted for:
Capital Commitments .
Debt Service .
Endowments:
Nonexpendable ..
Unrestricted .
TOTAL NET ASSETS . $
93,272,100
5,546,518
715,938
1,698,091
4,164,333
105,396,980 $
1l,344,015
4,1l0,256
15,454,271
104,616,1l 5
5,546,518
715,938
1,698,091
8,274,589
$ 120,851,251
(Concluded)
The notes to the financial statements are an integral part of this statement.
37
EXHIBITB
TOWN OF VERNON CONNECTICIlT
STATEMENT OF ACTnnTIES
FORTHE YEARENDED JUNE 30, 2010
Total
$ (4,661,420)
(1,133,291)
(10,831,955)
(6,273,824)
(1,442,336)
(1,140,722)
(25,551,861)
(1,697,994)
(52,733,403)
537,338
(27,275)
510,063
(52,223,340)
54,100,377
1,258,722
201,960
900,553
56,461,612
4,238,272
9,879
510,063
537,338
(27,275)
556,037
510,063
Business-Type
Activities
3,682,235
Net (Expense) Revenue and Changes in Net Assets
(52,733,403)
(4,661,420) $
(1,133,291)
(10,831,955)
(6,273,824)
(1,442,336)
(1,140,722)
(25,551,861)
(1,697,994)
(52,733,403)
Governmental
Activities
3,850,322 30,312,483 $
6,195,410
6,025,610
169,800
10,757,109 $
5,685,347
5,488,272
197,075
Change in Net Assets '" .
Total general revenues '" oo ..:;5.:;6,'-'4.:;15"',6::.:3:.;:8'-- ...:4.:;5,!.:.9.:;74.:.-__--'====_
Program Revennes
Operating Capital
Charges for Grants and Grants and
Expenses Services Contribntions Contributions
$ 6,002,872 $ 822,153 $ 422,099 $ 97,200 $
1,631,589 13,956 484,342
12,143,675 1,258,051 53,669
9,435,073 564,608 201,969 2,394,672
1,445,899 3,563
2,487,532 685,562 661,248
56,255,521 1,217,369 28,127,841 1,358,450
2,055,746 357,752
91,457,907 4,561,699 30,312,483 3,850,322
$ 97,143,254 $
General revenues:
Property taxes '" 54,100,377
Grants and contributions not restricted to specific programs... 1,258,722
Investment income.............................................................................. 192,081
Miscellaneous... 900,553
Transfers '" '" --'(.:;36"',0::.;:9"'5!-) 3::.;6"',0:.;:9.:;5 _
Total governmental activities '" .
Business-type activities:
Sewer user .
Center 375 (buildingrental) .
Total business-type activities .
FunctionslPrograms
Governmental activities:
General government.. '" , .
Community development.. .
Public safety '" , .
Maintenance and development. .
Human services .
Parks, recreation and culture , , .
Education .
Interest on long-term debt.. .
TotaL .
Net Assets at July I, 2009 (as restated) __ ____'1..:;4,..::.89::.:8:,;,2:::3:..:.4 ..:.1::.:16:l:,6::.:1c:2,,;::9..:..;79::....
Net Assets at June 30, 2010
The accompanying notes are an integral part of the financial statements
EXHIBITC
(2 of 2)
RECONCILIATION OF FUND BALANCE
TO NET ASSETS OF GOVERNMENTAL ACTIVITIES
JUNE 30, 2010
AMOUNTS REPORTED FORGOVERNMENTAL ACTIVITIES IN THE STATEMENT OF NET ASSETS (EXIDBIT A) ARE
DIFFERENT FROMTHE GOVERNMENTAL FUND BALANCE SHEET. THE DETAILS OF TillS DIFFERENCE ARE AS
FOLLOWS:
TOTAL FUND BALANCE (EXHIBIT C, PAGE 1) '" '" .
CAPITAL ASSETS USED IN GOVERNMENTAL ACTIVITIES ARE NOT FINANCIAL RESOURCES
AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS:
Beginning capital assets '" .
Current capital asset additions '" .
Depreciation expense '" .
Disposal and sale of capital assets .
OTHERLONG-TERM ASSETS ARE NOT AVAILABLE TO PAY FORCURRENT PERIOD
EXPENDITURES AND, THEREFORE, ARE DEFERRED IN THE FUNDS:
Property tax and sewer assessment interest and lien accrual .
Property tax, sewer assessment, and community development block grant receivable - accrual basis change .
School building grant receivable , , , .
Allowance for doubtful accounts ..
INTERNAL SERVICE FUNDS ARE USED BYMANAGEMENT TO CHARGE THE COST OF
MEDICAL INSURANCE PREMIUMS TO INDIVIDUAL DEPARTMENTS:
The assets and liabilities ofthe internal service funds are included in governmental activities in the
statement ofnet assets .
SOME LIABILITIES, INCLUDING BONDS PAYABLE, ARE NOT DUE AND PAYABLE IN THE
CURRENT PERIOD AND, THEREFORE, ARE NOT REPORTED IN THE FUNDS:
Bonds and notes payable '" .
Accrued interest payable '" .
State of Connecticut clean water notes , .
Compensated absences .
Capital leases , '" ..
Net OPEB liability ..
Retirement obligations ..
NET ASSETS OF GOVERNMENTAL ACTIVITIES .
40
$ 14,515,289
143,100,885
12,817,077
(4,009,144)
(80,627)
548,136
4,609,918
(231,686)
(575,000)
(924,110)
(44,840,000)
(698,224)
(10,210,277)
(4,094,574)
(188,094)
(981,654)
(3,360,935)
$ 105,396,980
(Concluded)
EXHIBITD
TOWN OF VERNON CONNECTICUT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
Public School Nonmajor Total
Debt Bond Bond Governmental Governmental
General Service Improvements Improvements Funds Funds
Revenues:
Property taxes $ 54,241,727 $ $ $ $ $ 54,241,727
Intergovernmental 23,875,558 1,301,208 9,498,430 34,675,196
Assessments 64,462 64,462
Charges for services 2,016,025 2,551,796 4,567,821
Gifts and contributions 357,752 1,195,048 1,552,800
Income on investments 42,113 1,838 3,391 3,248 141,491 192,081
Other 439,966 1,200 1,400 393,525 836,091
Total revenues 80,615,389 359,590 4,591 1,305,856 13,844,752 96,130,178
Expenditures:
Current:
General government 3,003,175 11,020 3,014,195
Community development 222,003 1,278,048 1,500,051
Public safety 7,698,462 968,856 8,667,318
Maintenance and development 5,451,295 566,588 6,017,883
Human services 923,368 193,757 1,117,125
-l>..
Parks, recreation and cillture 1,338,415 707,174 2,045,589
......
Townwide 6,138,804 526,597 6,665,401
Education 49,302,826 6,575,826 55,878,652
Debt service 3,091,374 1,662,040 12,254 19,898 701,298 5,486,864
Capital outlay 264,740 1,277,220 7,623,719 3,797,467 12,963,146
Total expenditures 77,434,462 1,662,040 1,289,474 7,643,617 15,326,631 103,356,224
Excess (Deficiency) ofRevenues over
Expenditures 3,180,927 (1,302,450) (1,284,883) (6,337,761) (1,481,879) (7,226,046)
Other Financing Sources (Uses):
Transfers in 241,856 1,304,288 1,597,435 3,143,579
Transfers out (2,901,723) (1,838) (276,113) (3,179,674)
Total other financing sources (uses) (2,659,867) 1,302,450 1,321,322 (36,095)
Net Change in Fund Balances 521,060 (1,284,883) (6,337,761) (160,557) (7,262,141)
Fund Balances at Jilly 1, 2009 9,905,669 1,344,366 2,248,919 8,278,476 21,777,430
Fund Balances at June 30, 2010 $ 10,426,729 $ $ 59,483 $ (4,088,842) $ 8,117,919 $ 14,515,289
TOWN OF yERNON. CONNECTICUT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN'FUND BALANCES OF GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES
AMOUNTS REPORTED FOR GOVERNMENTAL ACTIVITIES IN THE STATEMENT OF ACTIVITIES
(EXHIBIT B) ARE DUE TO:
NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS (EXHIBIT D) ..
Governmental funds report capital outlays as expenditures. However, in the Statement ofActivities the cost
of those assets is allocated over their estimated useful lives and reported as depreciation expense. This is the
amount by which capital outlays exceeded depreciation in the current period:
Capital outlay ..
Depreciation expense '" '" , ..
Total. .
The net effect of various miscellaneous transactions involving capital assets (i. e., sales, trade-ins and donations)
is to increase net assets. In the Statement of Activities, only the losson the sale of capital assets is reported.
However, in the governmental funds, the proceeds from the sale increase financial resources. Thus, the change
in net assets differs from the change in fund balance by the cost of the capital assets sold , .
Revenues in the Statement of Activities that do not prOVide current financial resources are not reported
as revenues in the funds and revenues recognized in the Fund Financial Statements are not recognized in the
statement of activities:
School building grant receipts '" '" '" , .
Change in property tax, sewer assessment, and community development block grant receivable - accrual basis change .
Change in property tax and sewer assessment interest and lien revenue .
Change in property tax and sewer assessment allowance for doubtful accounts ..
Total ..
The issuance oflong-term debt (e.g., bonds, leases) provides current financial resources to governmental funds,
while the repayment of the principal oflong-term debt consumes the current financial resources of governmental
funds. Neither transaction, however, has any effect on net assets. Also, govermnental funds report the effect
of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are
deferred and amortized in the Statement of Activities. The details ofthese differences in the treatment of
long-term debt and related items are as follows:
Debt issued or incurred:
Net OPEB obligation '" , , , .
Principal repayments:
General obligation bonds and notes payable ..
Capital lease payable '" '" .. , ..
Total ..
42
EXHIBITE
(1 of 2)
$ (7,262,141)
12,817,077
(4,009,144)
8,807,933
(8Q,627)
(231,686)
(675,977)
(20,683)
(25,595)
(953,941)
(453,654)
2,636,366
775,783
2,958,495
(Continued)
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES
IN FUND BALANCES OF GOVERNMENTAL FUNDS TO STATEMENT OF ACTIVITIES
Some expenses reported in the Statement of Activities do not require the use ofcurrent financial
resources and, therefore, are not reported as expenditures in governmental funds:
Compensated absences ..
Accrued interest payable '" .
Total ..
Internal Service Funds are used by management to charge costs of various self-insured risk premiums and Data Processing
operation to individual departments ..
The net revenue of the activities of the Internal Service Fund is reported with governmental activities , '" .
CHANGE IN NET ASSETS OF GOVERN!vIENTAL ACTIVITIES (EXlllBIT B) ..
43
EXHIBITE
(2 of 2)
$ (42,771)
439,918
18,969
416,116
(204,462)
862
$ 3,682,235
(Concluded)
EXHIBITF
STATEMENT OF NET ASSETS PROPRIETARY FUNDS
JUNE 30, 2010
Governmental
Business-Type Activities Activities
Nonmajor
Sewer Center Internal
User 375 Total Service Fund
Assets:
Current assets:
Cash and cash equivalents $ 294,951 $ 109 $ 295,060 $ 101,912
Investments 2,618,754 1,096,822 3,715,576 635,700
Receivables (net) 982,773 982,773
Due from other funds 12,260
Prepaid Expense 84,228
Total current assets 3,896,478 1,096,931 4,993,409 834,100
Capital assets (net):
Land and land improvements 838,180 645,711 1,483,891
Buildings and plant 4,172,081 1,880,273 6,052,354
Machinery and equipment 7,797,337 45,214 7,842,551 209,069
Infrastructure 10,519,700 10,519,700
Intangible - computer software 49,000 49,000 387,278
Construction-in-progress 610,813 610,813
Accumulated depreciation (13,912,187) (1,302,107) (15,214,294) (204,067)
Capital assets (net) 10,074,924 1,269,091 11,344,015 392,280
Total assets 13,971,402 2,366,022 16,337,424 1,226,380
Liabilities:
Current liabilities:
Accounts and other payables 629,505 9,416 638,921 206,725
Claims payable 591,698
Due to other funds 84,401 732 85,133 118,130
Accrued compensated absences 126,325 126,325 10,086
Total current liabilities 840,231 10,148 850,379 926,639
Noncurrent liabilities:
Claims payable 809,431
Accrued compensated absences 419,935 419,935 10,913
Net OPEB obligation
16,346 16,346
Total noncurrent liabilities
436,281 436,281 820,344
Total liabilities
1,276,512 10,148 1,286,660 1,746,983
Net Assets:
Invested in capital assets 10,074,924 1,269,091 11,344,015 392,280
Unrestricted 2,619,966 1,086,783 3,706,749 (912,883)
Total Net Assets
$ 12,694,890 $ 2,355,874 15,050,764 $ (520,603)
Adjustment to reflect the consolidation of internal service fund activities related to
proprietary funds ........................................................ , ......................... 403,507
Net assets of Business-type activities (Exhibit A)............................................... $ 15,454,271
44
EXHIBITG
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN FUND NET ASSETS - PROPRIETARY FUNDS
Sewer
User
Business-Type Activities
Nonmajor
Center
375 Total
Governmental
Activities
Internal
Service Funds
Operating Revenues:
Charges for services
Gifts and contributions
Other:
Insurance Reimbursement
Miscellaneous fees
Total operating revenues
Operating Expenses:
Wages and benefits
Repairs, maintenance and rentals
Utilities
Supplies and materials
General and administrative
Claims incurred
Depreciation
Total operating expenses
Operating Income (Loss)
Nonoperating Revenues (Expenses):
Investment income
Income (loss) before transfers in
Transfers In
Change in Net Assets
Net Assets at July 1,2009
$ 5,352,750 $
672,860
6,025,610
2,074,973
266,437
2,064,859
234,041
434,646
428,699
5,503,655
521,955
6,954
528,909
36,095
565,004
12,129,886
168,700 $
1,100
169,800
10,698
13,789
63,334
9,651
54,380
45,223
197,075
(27,275)
2,925
(24,350)
(24,350)
2,380,224
5,521,450 $
673,960
6,195,410
2,085,671
280,226
2,128,193
243,692
489,026
473,922
5,700,730
494,680
9,879
504,559
36,095
540,654
1,218,895
2,123,378
1,063
11,045
3,354,381
308,236
165,841
13,677
490
130,434
2,839,356
85,426
3,543,460
(189,079)
862
(188,217)
(188,217)
(332,386)
Net Assets at June 30,2010 $ 12,694,890 $ 2,355,874
540,654
Adjustment to reflect the consolidation of internal service fund activities related to
proprietary funds ..
Net assets of Business-type activities (Exhibit B) ..
15,383
$ 556,037
45
EXHIBITH
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
FORTHE YEAR ENDED JUNE 30, 2010
Governmental
Business-TyPe Activities Activities
Sewer Center Internal
User 375 Total Service Funds
Cash Flows from Operating Activities:
Service charges collected $ 5,533,893 $ 169,320 $ 5,703,213 $ 1,219,959
Contributions colIected 2,123,377
Other operating revenues collected 592,212 1,100 593,312 3,638
Cash payments for employee wages and benefits (2,066,643) (2,066,643) (296,891)
Cash payments for goods and services . (2,855,922) (151,597) (3,007,519) (107,755)
Cash payments for other operating expenses (2,862,860)
Cash payments of due to balance 96,000
Net cash used in operating activities 1,203,540 18,823 1,222,363 175,468
Cash Flows from Capital Financing Activities:
Purchase of capital assets (846,696) (241,533) (1,088,229) (143,779)
Cash Flows from Investing Activities:
Investment income 6,954 2,925 9,879 862
Net Increase (Decrease) in Cash and Cash Equivalents 363,798 (219,785) 144,013 32,551
Cash and Cash Equivalents at July 1, 2009 2,549,907 1,316,716 3,866,623 705,061
Cash and Cash Equivalents at June 30, 2010 2,913,705 1,096,931 4,010,636 737,612
Cash Equivalents Reported as Investments (2,618,754) (1,096,822) (3,715,576) (635,700)
Cash and Cash Equivalents, June 30, 2010 $ 294,951 $ 109 $ 295,060 $ 101,912
Reconciliation of Operating Income (Loss) to Net Cash
Used in Operating Activities:
Operating income (loss) $ 521,955 $ (27,275) $ 494,680 $ (189,079)
Adjustments to reconcile operating income (loss) to
net cash used in operating activities:
Add:
Depreciation expense 428,699 45,223 473,922 85,426
Decrease in accounts receivable 100,497 621 101,118
Increase in accounts payable 311,120 311,120 197,365
Increase in claims payable 57,578
Increase in accrued absences 6,410
Increase in due to other funds 732 732 117,143
Increase in OPEB obligation 16,346 16,346
Deduct:
Increase in due from other funds (12,260)
Increase in prepaid expense (84,228)
Decrease in accounts I claims payable (478) (478) (2,887)
Decrease in accrued absences (12,383) (12,383)
Decrease in due to other funds (162,694) (162,694)
Net adjustments to operating income (loss) 681,585 46,098 727,683 364,547
Net Cash Used in Operating Activities $ 1,203,540 $ 18,823 $ 1,222,363 $ 175,468
Schedule of noncash investing, capital and financing activities:
$7,573 of Sewer User Fund capital assets, gross of accumulated depreciation of$7,573, were disposed ofduring the fiscal year. In addition, $36,095 of capital
assets were contributed by the Town to the Sewer User Fund during the year.
The accompanying notes are an integral part ofthe financial statements
46
EXHIBIT I
STATEMENT OF FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
JUNE 30, 2010
Pension Private
Trust Purpose Agency
Funds Trust Fund
Fund
December 31, 2009 June 30, 2010 June 30, 2010
Assets:
Cash $ $ 231,447 $ 472,652
Investments, at fair value (pooled):
Pooled fixed income 12,729,744 241,945 174,838
Mutual funds:
Domestic equity 13,935,746
International equity 3,601,108
Corporate bond 1,921,759
Money market 763,165
Guarenteed investment account 6,915,699
Total investments 39,867,221 241,945 174,838
Accounts receivable 33,548
Total assets 39,867,221 506,940 647,490
Liabilities:
Accounts and other payables 15,135 20 647,490
Net Assets:
Held in Trust for pension benefits and
other purposes $ 39,852,086 $ 506,920 $
The accompanying notes are an integral part of the fmancial statements
47
EXHIBIT J
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
FIDUCIARY FUNDS
FOR THE YEAR ENDED DECEMBER 31, 2009 AND JUNE 30, 2010
Pension
Trust
Funds
December 31, 2009
Private
Purpose
Trust
Fund
June 30, 2010
50,671
50,671
87,168
419,752
137,839
120,198
17,641
120,198
2,655,103 $
1,262,617
3,917,720
5,604,908
9,522,628
3,269,875
126,960
140,276
3,537,111
5,985,517
33,866,569
39,852,086 $
$================5=06=,9=2=0
$
Total deductions
Total additions
Change in Plan Net Assets
Net investment income
Total contributions
Net Assets at December 31, 2009 and June 30, 2010
Net Assets at January 1 and July 1,2009
Deductions:
Benefit payments/annuity purchases
Refund of contributions
Administrative expense
Awards
Additions:
Contributions:
Employer
Employee
Private
The accompanying notes are an integral part of the fmancial statements
48
EXHlBITK
NOTES TO FINANCIAL STATEMENTS
HISTORYAND ORGANIZATION
The Town of Vernon was incorporated in 1808. The Town has operated under a Mayor-Town Council form of
government, with a full-time Town Administrator, since 1970 as prescribed by the Connecticut General Statutes
and its charter, which was adopted October 13, 1964 and last revised November 6, 1990. The Town provides the
following services: public safety (police, fire and ambulance), public works (public facility, street and
infrastructure maintenance and solid waste disposal), parks and recreation, youth and social services, wastewater
treatment, and education encompassing grades PreK-12.
The Town has considered all agencies, departments, commissions, boards (including the Board of Education),
authorities and funds to determine the "financial reporting entity" of the Town. The "fmancial reporting entity"
includes all the significant funds of the Town.
I. SUMMARY OFSIGNIFICANTACCOUNTINGPOLICIES
A. Government-Wide and Fund Financial Statements
The government-wide financial statements (Le., the statement of net assets and the statement of changes
in net assets) report information on all of the nonfiduciary activities of the primary government. For the
most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which norritally are supported by taxes and intergovernmental revenues, are reported
separately from business-type activities, which rely to a significant extent on fees and charges for
support.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment is 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, services, or privileges provided by a given function or
segment, and 2) grants and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
programrevenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary
funds, even though the latter are excluded from the government-wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
The various funds included in the fmancial statements are described below:
Governmental Funds
Governmental funds are those through which most governmental functions typically are fmanced.
General Fund is the primary operating fund of the Town. - This fund is used to account for all
financial transactions and resources except those required to be accounted for in another fund.
Revenues are derived primarily from property taxes, state and federal grants, licenses, permits,
charges for service and interest income.
49
EXHIBITK
NOTES TO BASIC FINANCIAL STATEMENTS (CONTINUED)
L SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES (CONTINUED)
A. Government-Wide and Fund Financial Statements (Continued)
Governmental Funds (Continued)
Special Revenue Funds account for revenue derived from specific sources (other than major
capital projects) that are restricted by legal and regulatory provisions to fmance specific
activities.
Debt Service Fund accounts for the resources accumulated and payments made for principal and
interest on long-term general obligation debt.
Capital Project Funds account for all financial resources used for the acquisition or construction
of major capital facilities not being financed by proprietary funds.
Permanent Funds are used to report resources that are legally restricted to the extent that only
earnings, and not principal, may be used for purposes that support the Town's programs.
Proprietary Funds
Proprietary funds are used to account for activities that are similar to those often found in the private
sector. These funds are accounted for on the flow of economic resources measurement focus and use
the accrual basis of accounting. The following are the Town's proprietary funds:
Enterprise Funds account for operations that are fmanced in a manner similar to private business
enterprises, where the intent is that costs of providing goods or services to the general public on a
continuing basis be financed or recovered primarily through user charges. The Sewer User Fund
and Center 375 Fund are the Town's enterprise funds.
Internal Service Funds account for the financing of goods or services provided by one department
to other departments or agencies of the Town on a cost-reimbursement basis. The Data
Processing Fund,Workers' Compensation Fund and the Medical Self-Insurance Fund are the
Town's internal service funds.
Fiduciary Funds
Fiduciary funds are used to account for assets held by the Town in a trustee capacity or as an agent
for individuals, private organizations and other governments. Fiduciary funds are not included in the
government-wide statements. The fiduciary funds are as follows:
Pension Trust Funds account for the accumulation of resources to be used for retirement annuity
payments in accordance with contract amounts and times in the future.
Private Purpose Trust Fund accounts for the receipt of private donations to be used for awards to
individual students of the Vernon school system.
Agency Funds are custodial in nature (assets equal liabilities) and do not involve measurement of
results of operation. The School Activity Fund, Miscellaneous Activity Fund and the Bid Bond
Deposit Fund are the Town's agency funds.
50
EXHIBITK
B. Measurement Focus, Basis of Accounting and Financial Statement Presentation
The government-wide fmancial statements are reported using the economic resources measurement
focus and the accrual basis of accounting, as are the proprietary fund and pension fund fmancial
statements. 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 fmancial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon
as they are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
For this purpose, the Town considers revenues to be available if they are collected within 60 days of
the end of the current fiscal period. 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 and claims and judgments, are recorded only when payment is due.
Property taxes, charges for services, licenses and interest associated with the current fiscal period are
all considered to be susceptible to accrual and so have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal period
is considered to be susceptible to accrual as revenue of the current period. All other revenue items
are considered to be measurable and available only when cash is received.
The Town reports the following major governmental funds:
The General Fund is the Town's primary operating fund. It accounts for all fmancial resources of
the Town, except those required to be accounted for in another fund.
The Debt Service Fund accounts for the resources accumulated and payments made for principal
and interest on long-term general obligation debt.
The Public Bond Improvements Fund, a capital proj ects fund, accounts for costs to reconstruct
certain town roads, sidewalks and bridges, and other improvements, as authorized by Town
referendum.
The School Bond Improvements Fund, a capital projects fund, accounts for the costs associated
with additions and renovation of Vernon schools, as authorized by Town referendum.
The Town reports the following major proprietary fund:
The Sewer User Fund accounts for the activity of the waste treatment plant.
Private-sector standards of accounting and fmancial reporting issued prior to December 1, 1989
generally are followed in both the government-wide and proprietary fund fmancial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private-
sector guidance for their business-type activities and enterprise funds, subject to this same limitation.
The Town has elected not to follow subsequent private-sector guidance.
51
EXHlBITK
B. Measurement Focus, Basis of Accounting and Financial Statement Presentation (Continued)
As a general rule, the effect of interfund activity has been eliminated from the government-wide
financial statements. Exceptions to this general rule are payments in lieu of taxes and other charges
between certain Town functions because the elimination of these charges would distort the direct
costs and program revenues reported for the various functions concerned.
Amounts reported as program revenues include I) charges to customers or applicants for goods,
services or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as general
revenues rather than as program revenues. Likewise, general revenues include property taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods
in connection with a proprietary fund's principal ongoing operations. The principal operating
revenues of the Town's enterprise funds, and of the Town's internal service funds are charges to
customers for sales and services. Operating expenses for enterprise funds and internal service fund
include the cost of sales and services, administrative expenses, and depreciation on capital assets. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When both restricted and unrestricted resources are available for use, it is the Town's policy to use
restricted resources first, then unrestricted resources as they are needed.
C. Assets, Liabilities, and Net Assets or Equity
1. Deposits andInvestments
Deposits - The Town's cash and cash equivalents consist of cash on hand, demand deposits, money
market accounts and short-term investments with original maturities of three months or less from the
date of acquisition.
Investments - In general, State of Connecticut Statutes allow the Town to invest in obligations of
the United States of America or United States government sponsored corporations, in shares or
other interests in any custodial arrangement, pool, or no-load, open-end management type
investment company or investment trust (as defmed), in obligations of any state or political
subdivision rated within the top two rating categories of any nationally recognized rating service, or
in obligations of the State of Connecticut or political subdivision rated within the top three rating
categories of any nationally recognized rating service. Investment income is recorded in the fund in
which it was earned.
The Town's pension funds do not have an investment policy; however, the Town has agreements
with the investment advisors, who manage the investment portfolios at the direction of the
Town's Pension Board and have full authority for the investment and reinvestment of pension
fund assets.
Investments for the Town are reported at fair value.
52
EXHIBITK
C. Assets, Liabilities, and Net Assets or Equity (Continued)
2. Receivables andPayables
a. Interfunds
Activity between funds that are representative of lending/borrowing arrangements
outstanding at the end of the fiscal year are referred to as either "due to/from other funds"
(i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the
noncurrent portion of interfund loans). All other outstanding balances between funds are
reported as "due to/from other funds." Any residual balances outstanding between the
governmental activities and business-type activities are reported in the .government-wide
financial statements as "internal balances." All trade and property tax receivables are shown
net of an allowance for uncollectibles.
b. Property Taxes and Other Receivables
In the government-wide fmancial statements, all trade, property tax, sewer use, sewer
assessment, and loan receivables are shown net of an allowance for uncollectibles.
Allowance percentages range from 10 to 64 percent of outstanding receivable balances, and
are calculated based upon prior collections.
Property taxes are levied on assessed property as of October 1. Taxes are billed the
following July and are due in two installments, July 1 and January 1, with the exception of
motor vehicle taxes which are billed and due on July 1. Taxes become delinquent 30 days
after the installment is due. Liens are effective on the assessment date and are continued by
filing prior to the end of the fiscal year following the due date.
Property taxes receivable at June 30 are recorded in the General Fund as deferred revenue
since they are not considered to be available to fmance expenditures of the current fiscal
year, except that receivables collected within 60 days after June 30 have been recorded as
revenue.
Sewer assessments levied by the Town are billed in installments annually on March 1. An
installment lien is filed and is effective until the assessment is paid. Sewer assessment
installments become delinquent 30 days after the installment is due at which time a
delinquent lien is effective. Delinquent liens are continued by filing annually.
3. Inventories and Prepaid Items
All inventories are valued at cost using the first-inlfirst-out (FIFO) method. Inventories of
governmental funds are recorded as expenditures when consumed rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are
recorded as prepaid items in both government-wide and fund financial statements.
53
EXHlBITK
4. Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads,
bridges, sidewalks and similar items), are reported in the applicable governmental or business-
type activities columns in the government-wide financial statements. Capital assets are defined
by the government as assets with an initial individual cost of more than $200 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 estimated fair
market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the value of the asset or
materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Interest incurred during the construction phase of capital assets of business-type activities is not
included as part of the capitalized value of the assets constructed.
Property, plant and equipment of the primary government is depreciated using the straight-line
method over the following estimated useful lives:
Assets
Land improvements
Buildings
Building improvements
Office equipment
Computer equipment
Vehicles
Infrastructure
Years
20
45
10-30
5-25
7
4-25
15-50
5. Compensated Absences
Certain employees are compensated by a prescribed formula for absence due to vacation or
sickness. The eligibility for vacation pay vests, and unused sick leave may only be accumulated
to be used for future absences, although unused sick leave may be paid upon termination, death or
retirement. The liability at June 30, 2010 is calculated by multiplying the current accumulated
vacation and sick days earned and payable by the employees' current daily rate of pay. The
Town's share of social security and medicare payroll taxes (7.65%) has been estimated and added
to the compensated absences accrual in accordance with the provisions of GASB Statement No.
16. The General Fund is the primary source of funding for compensated absences.
6. Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial
statements, long-term debt and other long-term obligations are reported as liabilities in the
applicable governmental activities, business-type activities or proprietary fund type statement of
net assets. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
over the life of the bonds using the effective interest method. Bonds payable are reported net of
any significant applicable bond premium or discount. Significant bond issuance costs are
reported as deferred charges and amortized over the term of the related debt.
54
EXHIBITK
6. Long-Term Obligations (Continued)
In the fund financial statements, governmental fund types recognize bond premiums and
discounts, as well as bond issuance costs, during the current period. The face amount of debt
issued is reported as other financing sources. Premiums received on debt issuances are reported
as other fmancing sources while discounts on debt issuances are reported as other financing uses.
Issuance cost1?, whether or not withheld from the actual debt proceeds received, are reported as
debt service expenditures.
7. Fund Equity andNet Assets
In the fund financial statements, governmental funds report reservations of fund balance for
amounts that are not available for appropriation or are legally restricted by outside parties for use
for a specific purpose. Designations of fund balance represent tentative management plans that
are subject to change.
In the government-wide financial statements, net assets are classified into the following categories:
Invested in Capital Assets, Net of Related Debt
This category presents the net assets that reflect capital assets net of only the debt applicable to
the acquisition or construction of these assets. Debt issued for non-capital purposes, and
unspent bond proceeds, are excluded.
Restricted Net Assets
This category presents the net assets restricted by external parties (creditors, grantors,
contributors or laws and regulations).
Unrestricted Net Assets
This category presents the net assets of the Town which are not restricted.
8. Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities including disclosures of contingent assets
and liabilities and reported revenues, expenses and expenditures during the fiscal year.
9. Reclassifications
Certain amounts presented in the prior year data have been reclassified in order to be consistent with
the current year's presentation.
55
EXHIBITK
IL STEWARDSHIP, COMPLIANCEANDACCOUNTABILITY
A. Budgetary Information
Budgetary Process - The Town adheres to the following procedures in establishing the budgetary data
included in the General Fund financial statements. The operating budget includes proposed
expenditures and the means of financing them.
No later than March 15, the Mayor must submit an appropriated budget to the Town Council for
review. The Town Council must hold two or more public hearings, the last of which shall be the
annual Town Meeting, not later than April 30. The Town Council shall approve a budget to be
presented at the Annual Town Meeting. The budget becomes effective only after it has been
approved by a majority vote of qualified voters present and voting at the annual Town Meeting. The
vote may neither increase nor decrease the budget as approved by Town Council. Within five days
after the adoption of the budget, the Council must set the mill rate for the coming fiscal year.
Budgetary Policies - The Town Council is authorized to transfer any unencumbered appropriation
balance or portion thereof from one department to another; however, such transfers must occur
subsequent to March 31. Transfers within account classifications of a single department are approved
by the Town's Finance Officer. Individual additional appropriations of less than 1/10 of 1% of the
total budgeted expenditures are approved by Town Council. The Vernon Board of Education is
authorized, under State law, to make any transfers necessary within the education budget at their
discretion. Authorization for additional appropriations exceeding 1/10 of 1% of total budgeted
expenditures requires a public hearing followed by Town Council approval in a special Town
meeting. Revised budget amounts are reported as amended by the Town Council during the course of
the year. Additional appropriations of $2,608,592 were authorized during the fiscal year along with
reappropriations of $1,464,658. The legal level of control, the level at which expenditures may not
legally exceed appropriations, is at the department level.
Encumbrance accounting is employed in governmental funds. Encumbrances (e.g., purchase orders,
contracts) outstanding at year end are reported as reservations of fund balances and do not constitute
expenditures or liabilities because the commitments will be reappropriated and honored during the
subsequent year.
B. Donor Restricted Endowments
The Town has received certain endowments for perpetual care of the cemetery and memorial
maintenance. The amounts are reflected in net assets as restricted for endowments. Investment income,
including appreciation of $348,983 for the Cemetery Fund and $-0- for the Memorial fund, is approved
for expenditure by the individual Boards of the benefiting activities.
56
II. STEWARDSHIP. COMPLIANCE ANDACCOUNTABILITY(CONTINUED)
C. Capital Projects Authorizations
The following is a summary of certain construction project funds at June 30, 2010:
CapitalProjects Authorizations
The Town has the following commitments on construction projects as of June 30, 2010:
EXHIBITK
Project
General Government
Project
Authorization
Expended
To Date
Remaining
Authorization
ADA Building Improvements
Town Hall and Other Renovations
Public Safety
Animal Control Shelter expansion
Animal Control Shelter caging
Animal Control Shelter incinerator
Company #1 Firehouse Bath Renovations and Roof!'
$ 152,984
704,988
58,000
17,000
48,100
38,677
$ 50,712
219,212
42,590
36,241
$ 102,272
485,776
15,410
17,000
48,100
2,436
Maintenance and Development
Road Reconstuction
Storm Drainage
Bridges
Sidewalk Reconstruction
Waste Water Treatment Improvements
Sewer System Improvements
Parks and Recreation
Valley Falls Park Improvements
Horowitz Pool Renovations*
Talcottville Enhancements
Fox Hill Tower Renovation
Community Arts Center
57
16,925,056 15,842,107 1,082,949
204,000 204,000
9,028,906 5,331,206 3,697,700
125,000 165,583 (40,583)
1,250,000 1,250,000
1,148,257 1,055,535 92,722
82,000 57,272 24,728
63,000 61,233 1,767
91,550 91,122 428
9,754 9,754
300,000 68,968 231,032
EXHIBITK
II. STEWARDSHIP, COMPLIANCE ANDACCOUNTABILITY(CONTINUED)
C. Capital Projects Authorizations (Continued)
The following is a summary of certain construction project funds at June 30,2010:
Project Expended Remaining
Project Authorization To Date Authorization
Education
Rockville High School Photo Lab $ 308,591 $ 305,341 $ 3,250
Rockville High School Track Resurfacing 50,000 44,000 6,000
Central Administration Repointing / Reroofmg 333,000 272,878 60,122
RHS Additions & Renovations 34,657,000 28,247,857 6,409,143
VCMS Renovations 11,519,000 10,727,053 791,947
Elementary School Additions & Renovations:
Center Road School 4,420,600 4,245,802 174,798
Lake Street School 5,828,800 4,953,588 875,212
Maple Street School 3,743,200 2,626,236 1,116,964
Northeast School 3,556,000 2,921,312 634,688
Skinner Road School 4,597,400 4,007,687 589,713
Total $ 99,260,863 $ 81,383,289 $ 17,877,574
* Project completed during the fiscal year.
D. Deficit Fund Balance
The following funds had a deficit fund balance at June 30, 2010:
Nonmajor Funds:
Special Revenue Fund:
Ambulance Medical Services
Public Safety Complex Grant-in-Aid Fund
Parks and Recreation Programs
Workers' Compensation (Internal Service Fund)
$ 4,349
860,500
3,495
1,065,921
The deficits in the Ambulance Medical Services and Parks and Recreation Programs Funds will be
eliminated by future collection of fund revenues. The deficit in the Public Safety Complex Fund will
be eliminated through the receipt of future transfers from other funds. The deficit in the Workers'
Compensation Fund will be eliminated by future charges allocable to other funds.
58
EXHIBITK
IlL DETAILEDNOTES
A. Cash and Investments
Deposits - Custodial Credit Risk - Custodial credit risk is the risk that, in the event of a bank failure, the
Town's deposits may not be returned to it. The Town does not have a deposit policy for custodial credit
risk. As of June 30, 2010, $3,846,173 of the Town's bank balance of$5,364,859 (including certificates of
deposit and money market accounts) was exposed to custodial credit risk as follows:
Uninsured and uncollateralized ..
Uninsured and collateral held by the pledging bank's
trust department, not in the Town's name .
Total amount subject to custodial credit risk .
$ 3,437,042
409,671
$ 3,846.173
On October 3, 2008, the Emergency Economic Stabilization Act of 2008 increased the insurance
coverage offered by the Federal Deposit Insurance Corporation (FDIC) from $100,000 to $250,000
per depositor. This limit is anticipated to return to $100,000 after December 31,2013. Additionally,
under the FDIC's Temporary Liquidity Guarantee Program, amounts held in noninterest bearing
transaction accounts at participating institutions are fully guaranteed by the FDIC through
December 31,2010. This guarantee is anticipated to be reduced to the $250,000 limit on January 1,
2011, and the $100,000 limit on January 1, 2014. The Town had amounts in excess of $250,000 in a
single bank during the year. Amounts over $250,000 are not insured by the FDIC. These balances
fluctuate during the year and can exceed this $250,000 limit. Management regularly monitors the
fmancial institution, together with its cash balances, and tries to keep this potential risk to a
minimum.
At June 30, 2010, the Town's investments (including restricted investments) consisted ofthe following:
TYPE OF
INVESTMENT
Mutual Funds:
Domestic Equity ..
International Equity ..
Government Bond ..
Corporate Bond ..
Money Market ..
Certificates of Deposit.. ..
Pooled Fixed Income ..
Guaranteed Investment Account ..
TOTAL .
INVESTMENT MATURITIES (IN YEARS)
FAIR LESS 1-5 5-10
VALUE N/A THAN 1 YEARS YEAR
$ 14,547,409 $ 14,547,409 $ $ $
3,728,699 3,728,699
579,357 126,071 453,286
1,921,759 1,527,716 394,043
801,511 801,511
261,523 261,523
32,876,112 20,146,367 12,729,745
6,915,699 6,915,699
$ 61.632.069 $ 18.276.108 $ 21.335.472 $ 14.710.747 $ 7.309,742
Interest rate risk - The Town does not have a formal investment policy that limits investment maturities
as a means of managing its exposure to fair value losses arising from increasing interest rates.
Credit risk - The Town has no investment policy that would limit its investment choices due to credit
risk other than State Statues governing investments in obligations of any State or political subdivision or
in obligations of the State of Connecticut or political subdivision.
59
EXHIBITK
IlL DETAILEDNOTES (CONTINUED)
A. Cash and Investments (Continued)
The Town's investments in pooled fixed income, fixed income mutual funds and bond mutual finds had
average ratings as follows by Standard & Poor's,
GOVERNMENT MONEY
POOLED BOND GUARANTEED MARKET
FIXED MUTUAL INVESTMENT MUTUAL
AVERAGE RATING INCOME FUNDS ACCOUNT FUNDS
AAA.......................................... $20,146,367 $ 579,357 $ $
AA.............................................
A................................................ 12,729,745
Unrated...................................... 6,915,699 801,511
TOTAL...................................... $32 876,112 $ 579.357 $ 6,915.699 $ 801.511
CORPORATE
BOND
MUTUAL
FUNDS
$
1,921,759
$ 1.921.759
Custodial credit risk - Custodial credit risk is the risk that, in the event of the failure of the counterparty,
the Town will not be able to recover the value of its investment or collateral securities that are in the
possession of an outside party.
At June 30, 2010, the Town's investments were in mutual funds and other pooled investments and,
therefore, not subject to custodial credit risk.
B. Receivables
Receivables as of year end for the Town's government-wide financial statements by type, including the
applicable allowances for uncollectibles, are as follows:
Current portion .
Long-tenn portion ..
Less allowance for uncollectibles ..
Net long-tenn portion .
PROPERTY TAXES
INTEREST
AND
TAXES LIEN FEES TOTAL
$ 704,954 $ 68.429 $ 773383
$ 576,780 $ 479,707 $ 1,056,487
(225,000) (350,000) (575,000)
$ 351.780 $ 129,707 $ 481.487
60
EXHIBITK
III. DETAILEDNOTES (CONTINUED)
B. Receivables (continued)
Receivable amount. .
Less allowance for uncollectibles ..
Net receivable ..
AMBULANCE
SEWER MEDICAL
USER SERVICES
$ 1,094,201 $ 767,394
111,428) 383,697)
$ 982,773 $ 383,697
There was no allowance applied to the sewer assessment receivable since the amounts are liened and the
lien stays with the property and not the owner,
Governmental funds report deferred revenue in connection with receivables for revenues that are not
considered to be available to liquidate liabilities of the current period, Governmental funds also defer
revenue recognition in connection with resources that have been received, but not yet earned. At the
end of the current fiscal year, the various components of deferred revenue and unearned revenue
reported in the governmental funds were as follows:
Delinquent property taxes receivable .
Loans .
Inter-municipal .
Special assessments and ambulance .
Taxes collected in advance ..
Intergovernmental (grants) .
School building grant ..
Other .
Total DeferredlUneamed Revenue for Governmental Funds ..
61
UNAVAILABLE UNEARNED TOTAL
$ 1,102,644 $ $ 1,102,644
209,389 209,389
2,300,479 5,463 2,305,942
441,359 3,414 444,773
4,722 4,722
21,509 21,509
556,047 556,047
176,645 176,645
$ 4,609,918 $ 211.753 $ 4,821.671
EXHlBITK
C. Capital Assets
Capital asset activity for the year ended June 30,2010 for Governmental Activities was as follows:
BALANCE BALANCE
JULy 1, 2009 lNCREASES DECREASES JUNE 30, 2010
Capital Assets, not being depreciated:
Land.................................................. $ 8,381,925 $ $ $ 8,381,925
Construction in progress.......................... 69,312,690 11,984,805 97,474 81,200,021
Total capital assets, not being depreciated...... 77,694,615 1l,984,805 97,474 89,581,946
Capital Assets, being depreciated:
Land improvements................................ 5,155,481 121,233 5,276,714
Buildings and improvements..................... 47,901,029 38,891 47,939,920
Machinery and equipment. ....................... 40,895,470 870,915 653,677 41,112,708
Intangibles - computer software.................. 349,120 38,158 387,278
Infrastructure........................................ 51,779,289 4,328 51,783,617
Total capital assets, being depreciated.......... 146,080,389 1,073,525 653,677 146,500,237
Total capital assets................................ 223,775,004 13,058,330 751,151 236,082,183
Less accumulated depreciation for:
Land improvements................................ 3,127,167 203,654 3,330,821
Buildings and improvements..................... 22,623,125 985,902 23,609,027
Machinery and equipment. ....................... 30,713,442 1,750,308 573,050 31,890,700
Intangibles - computer software.................. 53,021 5,166 58,187
Infrastructure........................................ 23,823,437 1,149,540 24,972,977
Total accumulated depreciation.................. 80,340,192 4,094,570 573,050 83,861,712
Total Capital Assets, being depreciated, net. ... 65,740,197 (3,021,045) 80,627 62,638,525
Governmental Activities Capital Assets, net. .. $ 143,434,812 $ 8,963,760 $ 178,101 $ 152,220,471
62
EXHIBITK
C. Capital Assets (Continued)
Capital asset activity for the year ended June 30,2010 for Business-Type Activities was as follows:
BALANCE BALANCE
JULy 1, 2009 INCREASES DECREASES JUNE 30, 2010
Capital Assets, not being Depreciated:
Land.................................................. $ 1,267,840 $ $ $ 1,267,840
Construction-in-Progress......................... 610,813 610,813
Total capital assets, not being depreciated...... 1,267,840 610,813 1,878,653
Capital Assets, being depreciated:
Buildings and system.............................. 5,800,830 251,524 6,052,354
Improvements other than building............... 216,051 216,051
Machinery and equipment.. ...................... 7,637,136 212,988 7,573 7,842,551
Intangibles - computer software.................. 49,000 49,000
Infrastructure........................................ 10,519,700 10,519,700
Total Capital Assets, being Depreciated 24,173,717 513,512 7,573 24,679,656
Total capital assets................................ 25,441,557 1,124,325 7,573 26,558,309
Less accumulated depreciation for:
Buildings and system.............................. 4,174,454 123,372 4,297,826
Improvements other than building............... 151,706 6,307 158,013
Machinery and equipment. ....................... 6,054,833 134,761 7,573 6,182,021
Intangibles - computer software.................. 3,500 3,500
Infrastructure........................................ 4,366,952 205,982 4,572,934
Total Accumulated Depreciation 14,747,945 473,922 7,573 15,214,294
Total Capital Assets, being Depreciated, net.. 9,425,772 39,590 9,465,362
Business-Type Activities Capital Assets, net.. $ 10,693,612 $ 650,403 $ $ 11,344,015
63
EXHIBITK
C. Capital Assets (Continued)
Depreciation and amortization expense was charged to functions/programs of the primary government as
follows:
Governmental activities:
General government
Community development
Public safety
Maintenance and development
Human services
Parks and recreation
Townwide
Education
Total Depreciation Expense - Governmental Activities
Business-type activities:
Sewer use
Rental of building
Total Depreciation Expense - Business-type Activities
D. Interfund Receivables, Payables and Transfers
Interfund transfers:
$ 128,699
267
422,602
1,321,010
1,560
203,720
1,387,344
629,368
$ 4,094,570
$ 428,699
45,223
$ 473,922
Transfers In
General Debt Nonmajor Sewer Total
Fund Fund Governmental Fund Out
Transfers out:
General Fund $ $ 1,304,288 $ 1,597,435 $ $ 2,901,723
Debt Service 1,838 1,838
Public Bond Improvement
Nonmajor Governmental 240,018 36,095 276,113
Total Transfers In $ 241,856 $ 1.304,288 $ 1.597.435 $ 36,095 $ 3,179,674
Interfund transfers primarily are the result of moving General Fund or other fund revenues to fmance
programs or projects that mayor must be accounted for in a separate fund.
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D. Interfund Receivables, Payables and Transfers (Continued)
At June 30,2010, the amounts due to and from other funds were as follows:
DUE FROM DUE TO
OTHER OTHER
FUNDS FUNDS
General Fund $ 4,092,563 $ 2,464,181
Special Revenue Funds:
Dog License Fund 2,655 1,399
Insurance Exchange 268
Town Clerk Special 37
Town Aid Road 263
Ambulance Medical Services 30,502
Vernon Cemetery Commission 7,838
Sewer Assessment 457,845 560
Public Safety Complex 860,500
Special Education Grants 612
CDBG Small Cities 1,368
Town Post Employment Fund 131
Board of Education Post Employment Fund 2 686
Parks and Recreation Programs 93,454
Roosevelt Mill Cleanup 248,008
Miscellaneous Grants 3,127 296,378
Miscellaneous Special Revenue 8,000
Debt Service Fund 1,838
Capital Projects Funds:
Public Bond Improvements 740,000 14,259
School Bond Improvements 1,904,568
Town Capital & Non-Recurring 865,904 22,260
Education Capital & Non-Recurring 394,000
River Street Bridge Renovations 192,668
Spring Street Bridge 216,613
Proprietary Funds:
Enterprise Funds:
Sewer User Fund 84,401
Center 375 732
Internal Service Funds:
Data Processing Fund 12,260 22,130
Medical Self-Insurance 96,000.
Total $ 6,569,005 $ 6,569,005
Interfund balances are the result of interfund transfers, reimbursements or loans outstanding at
June 30,2010.
65
EXHIBITK
III DETAILEDNOTES (CONTINUED)
E. Short-Term Obligations - Bond Anticipation Notes
Bond Anticipation Notes:
PROJECT
BALANCE
JULy I,
2009 ADDITIONS REDUCTIONS
BALANCE
JUNE 30,
2010
Public Bond Improvements Fund............................... $ 1,400,000 $ 1,480,000 $ 2,140,000 $ 740,000
School Bond Improvements Fund.............................. ---"S""',2""80"",0"-"0""-0__........ 2"",9:..1-.70"-',0"-'0'-'!-0
Total Bond Anticipation Notes................. !!1:$
On February 3, 2010, the Town issued $3,710,000 of bond anticipation notes (BANs) to retire
$3,710,000 of BANs maturing on February 11, 2010. These BANs mature on June 15, 2010, and
were issued at an interest rate of .50%, a yield of .4254%, and at premium of $953. Of the
$3,710,000, $740,000 were issued to fund short-term road, bridge, sidewalk and drainage
improvements (general purposes) and $2,970,000 were issued to fund short-term school renovation
costs. The $3,710,000 BANs maturing on June 15, 2010, were retired with the issuance of another
$3,710,000 BAN issuance maturing on September 15, 2010. This BAN was issued at an interest rate
of 1.5%, a yield of .4440%, and at a premium of $9,794. June 30, 2010 outstanding BANs are
expected to be permanently financed with general purpose and school bond fmancing in January
2011. BAN premiums were and will be utilized to offset BAN interest expense.
66
EXHIBITK
F. Changes in Long-Term Obligations
1. Summary ofChanges
Long-term liability activity for the year ended June 30,2010 was as follows:
Balance Balance
July 1, June 30, Due Within
2009 Additions Reductions 2010 One Year
Bonds:
General purpose $ 14,287,000 $ $ 360,000 $ 13,927,000 $ 574,000
Schools 29,798,000 498,000 29,300,000 1,177,000
Sewers 1,905,000 292,000 1,613,000 289,000
Total bonds payable and related
liabilities 45,990,000 1,150,000 44,840,000 2,040,000
Notes:
State of Connecticut
Clean Water Fund 11,696,643 1,486,366 10,210,277 1,514,678
Lease purchases:
Fire Truck:
Aerial ladder 276,456 88,362 188,094 92,099
Pumper tanker 103,970 103,970
Dump trucks/refuse packer 200,226 200,226
Sweeper / Vac-All / 383,225 383,225
Total lease purchases 963,877 775,783 188,094 92,099
Compensated absences:
Town 2,899,331 341,049 214,133 3,026,247 683,724
Board of Education 1,152,472 65,356 149,501 1,068,327 279,178
Internal Service Fund 14,590 6,409 20,999 10,085
Total compensated absences 4,066,393 412,814 363,634 4,115,573 972,987
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TOWNOF VERNON, CONNECTICUT
EXHIBITK
IlL DETAILED NOTES (CONTINUED)
F. Changes in Long-Term Obligations (Continued)
1. Summary of Changes (Continued)
Balance Balance
July 1, June 30, Due Within
2009 Additions Reductions 2010 One Year
Retirement obligations:
Town
Net OPEB obligation $ 234,000 $ 475,000 $ 273,346 $ 435,654 *$
Board of Education:
Net OPEB obligation 294,000 644,000 392,000 546,000
Estimated retirement pay 2,211,137 68,047 371,126 1,908,058 209,583
Early retirement pay 1,575,764 323,855 470,404 1,429,215 463,956
Healthcare termination 13,952 25,366 15,656 23,662 23,662
Total retirement obligations 4,094,853 1,061,268 1,249,186 3,906,935 697,201
Risk management:
Claims payable 1,343,552 2,839,356 2,781,779 1,401,129 591,698
Total Governmental Activity
Term Liabilities
$ 68,389,318 $ 4,788,438 $ 8,080,094 $ 65,097,662 $ 5,908,663
Alllong-tenn obligations are generally liquidated by the general fund or debt service fund.
* $16,346 of the net pension obligation is recorded in the Sewer User Fund
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EXHIBITK
1. Summary of Changes (Continued)
Amount of Amount
Issue Maturity Original Outstanding
Debt Type Date Date Interest Rate Issue June 30, 2010
Bonded Debt
General Purpose Bonds:
Public Improvements 02/15/07 02/15127 3.875 - 5.75% 9,251,000 $ 8,207,000
Public Improvements 02/01/08 02/01/28 3.50 - 5.50% 5,000,000 5,000,000
Public Improvements 02/01/09 02/01/24 2.50 - 4.50% 720,000 720,000
Total General Purpose Bonds 13,927,000
School Bonds:
School Renovations 02/04/04 09/15/12 1.00 - 5.00% 3,125,000 875,000
School Improvements 02/15/07 02/15/27 3.875 - 5.75% 2,515,000 2,230,000
School Renovations 02/01/08 02/01/28 3.50-5.50% 16,040,000 16,040,000
School Renovations 02/14/08 02/01/28 3.50-5.50% 10,155,000 10,155,000
Total School Bonds 29,300,000
Sewer Bonds:
Sewer Ordinance #167 02/04/04 09/15/12 1.00 - 5.00% 2,085,000 685,000
Sewer System Improvements 02/15/07 02/15/27 3.875 - 5.75% 1,049,000 928,000
Total Sewer Bonds 1,613,000
Total Bonded Debt $ 44,840,000
Notes Payable
State of Connecticut:
Clean Water Fund 211-C 02/20/92 05/30/11 2.0% 199,611 $ 9,149
Clean Water Fund 244-C OS/28/93 11/30/12 2.0% 649,740 78,510
Clean Water Fund 200-C 12/31/97 12/31/16 2.0% 27,635,550 10,122,618
Total Notes Payable $ 10,210,277
Lease Purchases
Aerial ladder 09/15/01 09/15/11 4.2% $ 802,330 $ 188,094
Pumper tanker 12/15/01 12/15/11 4.2% 301,739
Dump trucks / refuse packer 10125/05 10/25/10 3.4% 476,280
Sweeper / Vac-All / Recycling 04/01/08 04/01/13 4.0% 470,000
Total Lease Purchases $ 188,094
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EXHIBITK
1. Summary ofChanges (Continued)
The following is a summary of general long-term debt principal maturities:
Fiscal Year Bonded Debt
Ending General Notes Lease Total
June 30 Purpose School Sewer Total Payable Purchase All Debt
2011 $ 574,000 $ 1,177,000 $ 289,000 $ 2,040,000 $ 1,514,678 $ 92,099 $ 3,646,777
2012 621,000 1,796,000 268,000 2,685,000 1,535,261 95,995 4,316,256
2013 640,000 1,552,000 258,000 2,450,000 1,546,643 3,996,643
2014 773,000 1,485,000 57,000 2,315,000 1,564,052 3,879,052
2015 797,000 1,521,000 57,000 2,375,000 1,595,621 3,970,621
2016 797,000 1,521,000 57,000 2,375,000 1,627,828 4,002,828
2017 834,000 1,709,000 57,000 2,600,000 826,194 3,426,194
2018 842,000 1,851,000 57,000 2,750,000 2,750,000
2019 867,000 2,001,000 57,000 2,925,000 2,925,000
2020 867,000 2,001,000 57,000 2,925,000 2,925,000
2021 867,000 2,001,000 57,000 2,925,000 2,925,000
2022 867,000 2,001,000 57,000 2,925,000 2,925,000
2023 890,000 2,078,000 57,000 3,025,000 3,025,000
2024 890,000 2,078,000 57,000 3,025,000 3,025,000
2025 827,000 1,166,000 57,000 2,050,000 2,050,000
2026 827,000 1,166,000 57,000 2,050,000 2,050,000
2027 827,000 1,166,000 57,000 2,050,000 2,050,000
2028 320,000 1,030,000 1,350,000 1,350,000
Total $ 13,927,000 $ 29,300,000 $ 1,613,000 $ 44,840,000 $ 10,210,277 $ 188,094 $ 55,238,371
The following is a summary of general long-term debt interest maturities:
Bonded Debt
Fiscal Year
Ending General Notes Lease Total
June 30 Purpose School Sewer Total Payable Purchase All Debt
201 I $ 567,617 $ 1,119,786 $ 55,434 $ 1,742,837 $ 190,362 $ 7,956 $ 1,941,155
2012 535,148 1,065,424 46,291 1,646,863 159,889 4,061 1,810,813
2013 502,325 986,258 37,316 1,525,899 129,001 1,654,900
2014 473,409 915,044 32,134 1,420,587 97,988 1,518,575
2015 443,505 857,641 29,854 1,331,000 66,419 1,397,419
2016 413,595 809,956 27,574 1,251,125 34,213 1,285,338
2017 383,684 762,271 25,294 1,171,249 4,826 1,176,075
2018 352,480 708,756 23,014 1,084,250 1,084,250
2019 321,409 647,661 20,805 989,875 989,875
2020 289,320 579,396 18,596 887,312 887,312
2021 256,069 507,490 16,316 779,875 779,875
2022 222,288 432,113 14,036 668,437 668,437
2023 187,609 352,073 11,756 551,438 551,438
2024 151,375 268,783 9,405 429,563 429,563
2025 115,141 185,493 7,054 307,688 307,688
2026 81,428 138,683 4,703 224,814 224,814
2027 47,314 90,585 2,351 140,250 140,250
2028 13,200 42,488 55,688 55,688
Total $ 5,356,916 $ 10,469,901 $ 381,933 $ 16,208,750 $ 682,698 $ 12,017 $ 16,903,465
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2. Termination Benefits
A tennination benefit is an incentive for the early tennination of services and includes cash
payments or healthcare provided by the Town that would otherwise not be provided.
Expenditures are recognized in governmental funds when due and payable and recognized as an
expense in government-wide fmancial statements when the employee accepts the early retirement
offer.
School Administrators
As part of the early retirement incentive plan for school administrators, the Town offers to pay a
percentage of the early retiree's health insurance premium and a cash payout. Such benefit
provisions, included in the school administrators' bargaining agreement with the Vernon Board
of Education, require Town Council approval.
Currently, there are 5 former school administrators receiving this benefit. The cost to the Town,
net of participant contributions, for the 2009/10 fiscal year is $15,656. A liability of $23,662,
presented in government-wide financial statements, for this benefit is calculated based upon the
discounted present value of future unadjusted premiums and includes a healthcare cost trend of
13.19% and an investment yield of .24%.
In addition to healthcare termination benefits, cash payments are available to school administrator
early retirees. Also, there are 14 former school administrators receiving this benefit. The cost to
the Town for the 2009/10 fiscal year is $160,404. A liability of $435,355, presented in
government-wide fmancial statements, for this benefit is calculated based upon the discounted
present value of expected future benefits and an .24% yield of investments that are expected to be
used to finance such benefit payments.
School Teachers
The Town also offers an early retirement incentive plan for certified teachers in the form of cash
payments. Benefit provisions, included in the school teachers' bargaining agreement with the
Vernon Board of Education, require Town Council approval.
There are 75 former teachers receiving this benefit. The cost to the Town for the 2009110 fiscal
year is $310,000. A liability of $993,860, presented in government-wide fmancial statements, for
this benefit is calculated based upon the discounted present value of expected future benefits and
an .24% yield of investments that are expected to be used to finance such benefit payments.
3. Capital Leases
Capital leases for the purchase of a pumper truck, dump trucks, a refuse packer, a sweeper, a vac-
all and a recycling truck were all prepaid in full during fiscal year 2009/10. The only lease
outstanding at June 30, 2010 is for an aerial ladder fire truck. The present value of future
minimum lease payments amounts to $188,094 at June 30,2010.
The amount of assets capitalized under Capital Leases totaled $802,330 at June 30,2010.
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EXHIBITK
4. Statutory Debt Limitations
The Town's indebtedness does not exceed the legal debt limitations as required by Connecticut
General Statutes as reflected in the following schedule:
CATEGORY
General purpose .
Schools .
Sewers .
Urban renewal .
Pension deficit .
DEBT LIMIT
$ 122,035,995
244,071,990
203,393,325
176,274,215
162,714,660
NET
INDEBTEDNESS
$ 18,059,000
68,355,953
11,927,377
BALANCE
$ 103,976,995
175,716,037
191,465,948
176,274,215
162,714,660
The total overall statutory debt limit for the Town is equal to seven times annual receipts from
taxation, $379,667,540.
The indebtedness reflected above includes bonds outstanding in addition to the amount of bonds
authorized and unissued against which bond anticipation notes are issued and outstanding. School
building grants receivable of $556,047 for bond principal are reflected as deductions in the
computation of net indebtedness, as are $57,900 of sewer assessment receivable.
5. Authorized/UnissuedBonds
At a referendum held on November 4, 2004, Public Bond Improvements of $21,609,000 were
authorized to fund $19,103,000 of roads, sidewalk and bridge reconstruction projects, $1,295,000
of waste treatment plant improvements and $1,211,000 of sewer system improvements. Of the
$21,609,000 authorization, $16,020,000 of bonds has been issued and $740,000 of BANs remain
issued and outstanding. The remaining unissued public bond improvements authorization is
$4,849,000 as of June 30, 2010.
At a referendum held on March 29, 2005, School Bond Improvements of $68,322,000 were
authorized to fund $34,657,000 of additions and renovations to Rockville High School,
$11,519,000 of renovations to Vernon Center Middle School and $22,146,000 of additions and
renovations to the Town's five elementary schools. Of the $68,322,000 authorization,
$28,710,000 of bonds has been issued and $2,970,000 of BANs remain issued and outstanding.
The remaining unissued school bond improvements authorization is $36,642,000 as of June 30,
2010.
6. Prior Year AdvancedRefunding
In prior years, the Town defeased General Obligation Bonds by creating a separate irrevocable
trust. New debt has been issued and the proceeds have been used to purchase U.S. government
securities that were placed in the trust. The investments and fixed earnings from the investments
are sufficient to fully service the defeased debt until the debt is called or matures. For financial
reporting purposes, the debt has been considered defeased and therefore is no longer counted in
computing Town's debt for statutory debt limit purposes. As of June 30, 2010, the amount of
defeased debt outstanding amounted to $1,520,000.
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G. Fund Balances and Net Assets Reserved
The following is a description of the various reserve accounts used to indicate that a portion of equity
is legally segregated for a specific purpose and is unavailable for appropriation:
Reserved for Contract Commitments - represents the balance of outstanding contracts and purchase
orders at year end.
Reserved for Construction Commitments - represents the balance of amounts approved by the Town
Council for future construction and capital outlay commitments at year end.
Reserved for Inventory - the balance of inventory accounts has been reserved to indicate that the
portion of fund balance represented is not available for appropriation or expenditure.
Reserved for Debt Service - represents the fund balance of the Sewer Assessment Fund which will be
used for debt service.
Reserved for Endowments - represents amounts in all Permanent Funds which are reserved to indicate
that they are not available for appropriation or expenditure.
Reserved for Employees' Pension Benefits - represents the amount of funds accumulated in the
Pension Trust Fund to pay for pension benefits.
Reserved for Private Purpose Trust - represents the amount of funds available for school awards.
A summary of reserved fund balances, including construction commitments, at June 30, 2010 is
presented below:
General Fund:
Reserved for encumbrances
Reserved for contract commitments
Reserved for construction commitments
Reserved for inventory
Reserved for debt service
Capital Projects Funds:
Reserved for contract commitments
Reserved for construction commitments
Permanent Funds:
Reserved for endowments
$ 1,833,779
1,199,450
903,315
30,464
715,938
3,593,190
2,246,534
1,698,091
Total Governmental Funds
73
$ ====12==,2=2=0==,7=61=
EXHIBITK
IV. OTHER INFORMATION
A. Risk Management
The Town is exposed to various risks of loss including torts, theft of, damage to and destruction of
assets; errors and omissions; injuries to employees and natural disaster. Generally, the Town obtains
commercial insurance for these risks, but has chosen to retain the risks for workers' compensation
through a Workers' Compensation Fund. The fund, classified as an Internal Service Fund, is
supported by contributions from the General and Sewer User Funds. Contribution amounts are based
on historical experience of claims incurred and paid. Although the risk is retained by the Town,
commercial insurance is purchased for individual claims in excess of $500,000, with a $10,000,000
aggregate maximum per year. The claim accrual does not include other allocated or unallocated
claims adjustment expenses. Settled claims have not exceeded commercial insurance coverage for
each of the last three fiscal years. There has been no reduction in insurance coverage from the prior
year.
CIRMA administers the claims processing for the Town, for which the Town pays a fee. Claims
incurred are estimated by CIRMA by fiscal (contract) year. Claims outstanding at June 30 are based
on the requirements of GASB Statements No. 10 and 30, which require that a liability for claims be
reported if information prior to the issuance of the fmancial statements indicates that it is possible
that a liability has been incurred at the date of the financial statements and the amount of the possible
loss can be reasonably estimated. The amount of claim accrual is based on the ultimate costs of
settling the claim, which include past experience data, inflation and other future economic and
societal factors and incremental claim adjustment expenses, net of estimated subrogation recoveries.
Workers' compensation claims transactions for the past two fiscal years are summarized below:
Fiscal Year Ending June 30,
2010 2009
Claims payable, July 1 $ 1,266,314 $ 534,041
Incurred claims, current year 630,246 493,703
Claims adjustments, prior years (199,544) 791,163
Claims incurred for the fiscal year 430,702 1,284,866
Claims paid, current and prior years 385,905 552,593
Claims payable, June 30 $ 1,311,111 $ 1,266,314
Based on historical payment data, approximately 38.26% of claims payable at June 30, 2010 will be
paid during the following fiscal year. Thus, $501,680 of claims payable at June 30, 2010 is
considered as a current liability and the remaining $809,431 is considered as a long-term liability.
Claims payable at June 30, 2010 includes $129,169 of estimated incremental claims adjustment
expenses, net of estimated subrogation recoveries.
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IV. OTHER INFORMATION (CONTINUED)
A. Risk Management (Continued)
The Town is also self-insured for the cost of medical prescriptions for its employees and retirees.
The Town Council authorized the establishment of the Medical Self-Insurance Fund, an Internal
Service Fund, which became effective January 1, 2006. Effective July 1, 2007, the Town became
self-insured for the cost of dental for its general government employees and retirees. The fund is
supported by contributions from all covered participants with the remaining support provided by the
General Fund, Cafeteria, Special Education Grants and Vernon Cemetery Funds (Special Revenue
Funds), the Sewer User Fund (Enterprise Fund) and the Data Processing Fund (Internal Service
Fund). Contribution amounts are based upon historical experience of claims incurred and paid.
A third party administers the prescription claims processing and the dental claims processing for the
Town for which the Town pays a fee. Claims incurred and paid data are provided to the Town, which
reimburses MedCo and Anthem for the costs of the claims and administrative expenses. As of June
30,2010, claims payable represents the cost of claims incurred and paid by MedCo and Anthem that
require reimbursement from the Town.
Medical self-insurance claims transactions for the past two fiscal years are as follows:
Fiscal Year
2009-10 2008-09
Claims payable, July 1 $ 77,237 $ 81,829
Incurred claims, current year 2,408,654 2,256,145
Claims adjustments, prior years
Claims incurred for the fiscal year 2,408,654 2,256,145
Claims paid, current and prior years 2,395,873 2,260,737
Claims payable, June 30 $ 90,018 $ 77,237
The entire portion of claims payable at June 30,2010 is considered payable in the ensuing fiscal year.
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B. Commitments and Contingencies
Pending Suits and Claims
There are various suits and claims pending against the Town, none of which, individually or in the
aggregate, legal counsel believes would likely result in a judgment that would materially affect the
Town's financial position.
State and Federal Assets
The Town receives State and Federal grants for specific purposes that are subject to review and audit
by the grantor agencies. Such audits could lead to requests for reimbursement to the grantor agency
for any expenditures disallowed under terms of the grant. The Town's management believes such
disallowances, if any, would not be material.
Waste Treatment Plant Debt
The Town permanently fmanced the upgrade and expansion of the Vernon Waste Treatment Plant on
December 31, 1997 with a $27,635,550 State of Connecticut Clean Water Fund (CWF) loan, payable
monthly through December 31,2016. Of the $10,122,618 due on the CWF loan as of June 30,2010,
the Towns of Ellington, Manchester, South Windsor and Tolland are obligated to provide payments
totaling $2,178,880 to the Town of Vernon in installments through December 31,2016. The Town of
Vernon is responsible for debt service payments on the loan.
Bolton Lakes Wastewater Disposal
The Town of Vernon and the neighboring Town of Bolton entered into a consent order with the
Connecticut Department of Environmental Protection (CTDEP) on October 14, 1999 requiring the
towns to take the necessary steps to address wastewater disposal alternatives for the Bolton Lakes'
area. Two State-funded engineering studies have confirmed that specific areas around the middle and
lower Bolton Lakes no longer meet the requirements of current health codes for septic systems and
recommend the installation of a low-pressure sewer system with wastewater being pumped to the
adjacent Town of Manchester Wastewater Treatment Facility.
The Bolton Lakes Regional Water Pollution Control Authority (BLRWPCA) was created by
ordinances adopted in both towns. In Vernon, Ordinance #242 was adopted in April of 2003. The
formation of the regional authority gives the BLRWPCA the power and authority, granted by State
Statutes, to construct a sewerage system, charge user fees, levy assessments, bill for hook-up fees and
to operate and manage the sewer system. .
The current estimated project costs are $21,959,000, with Vernon's 29% share, or $6,368,110,
reduced to $2,725,839 by potential federal and state grant funding. Project work is not anticipated to
commence in Vernon until 2012.
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TOWN OF VERNON, CONNECTICur
IV, OTHER INFORMATION (CONTINUED)
C. Employee Retirement Systems and Pension Plans
Defined Benefit Plans
1. Plan Descriptions
a. Plan Type, Participating Employer and Employees Covered
The Town has established three single-employer contributory defined benefit plans which
substantially cover all full-time employees, except certified employees of the Board of
Education who are covered by the State Teachers' Retirement System, and members of the
Town's Volunteer Fire Department (VFD) based upon certain service criterion. The pension
plan for the VFD was established effective January 1, 2000. Although members of the VFD
are not town employees, the Town has recognized the VFD's commitment to protecting the
lives and property of Vernon's residents with the establishment of a retirement plan known as
the Town of Vernon Length of Service Award Program (LOSAP). The LOSAP provides a
financial reward as an incentive for recruiting and retaining fire department volunteers. The
pension plans are reported in the Town's fmancial statements as separate pension trust funds;
Police Pension Plan, Town Pension Plan and the Volunteer Firefighters LOSAP. Separate,
stand-alone reports are not issued.
b. Participant Membership
Participant membership at January 1, 2010 was as follows:
Retirees, disabled and beneficiaries currently
receiving benefits
Terminated employees entitled to benefits, but
not yet receiving them
Active employees:
Vested, partially vested and nonvested
Total participant membership
c. Benefit Provisions
Police
Plan
39
1
49
89
Town
Plan
145
112
373
630
LOSAP
10
30
135
175
Plan benefits are established by the Town and may be amended only by the Town Council.
i. Normal Retirement Date and Benefits
A participant who has attained hislher normal retirement date and/or required years of
service is eligible for a normal retirement benefit. The benefit at normal retirement is
equal to the employees' accrued benefit based on average monthly earnings and years of
service.
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EXHIBITK
C. Employee Retirement Systems and Pension Plans (Continued)
Defined Benefit Plans (Continued)
1. Plan Descriptions (Continued)
c. Benefit Provisions (Continued)
i. Normal Retirement Date and Benefits (Continued)
Police Pension Plan
The normal retirement date for police officers is attained at the completion of 20 years of
service.
Town Pension Plan
The nomial retirement date for members of the Public Works (P.W.) and Parks union is
attained at age 55 and 5 years service or after 25 years of service. The normal retirement
date for P.W. Supervisors is Rule 85 with a minimum retirement age of 58. The normal
retirement date for members of the Police Civilian Support union is attained at age 55 and
10 years service. The normal retirement date for non-bargaining Town Hall employees
Education Librarian and Education Secretarial and Maintenance employees is age 62 and
10 years service or age 60 and 32 years of service. Professionals, Waste Treatment Plant
(WTP) Supervisors, P.W. Clerical, Education Supervisors and Education School Nurse
union employees attain normal retirement age at age 62 and 10 years service. The normal
retirement date for all other participants is attained at age 65 and 10 years of service.
LOSAP
The normal retirement date for volunteer firefighters is attained at age 65 with 10 years
of credited service. A year of credited service is achieved based upon a point system
established by the Fire Chief. The benefit at normal retirement is equal to $8 per month
for each year of credited service to a maximum of $240 per month.
ii. Early Retirement Date and Benefits
Participants of the Police and Town Pension Plans may, upon 10 years of service, elect
early retirement on a date which shall be within 10 years of normal retirement age. The
early retirement benefit is determined as for normal retirement, based on earnings and
service to date of early retirement. Members of the Police Civilian Support union are
ineligible for this benefit.
78
EXHIBITK
W. OTHER INFORMATION (CONTINUED)
1. Plan Descriptions (Continued)
c. Benefit Provisions (Continued)
iii. Death Benefits
Death benefits are payable to beneficiaries as determined by death before retirement or
death after retirement provisions. For Police and Town participants, upon the death of a
nonvested participant, there shall be payable to the beneficiary, a death benefit equal to
the participant's contributions plus interest. A preretirement spousal death benefit is
payable to vested participants who have been married five full years prior to death. The
preretirement spousal death benefit is determined as for early retirement, based on
earnings and credited service to the date of participant death. For VFD members, a
preretirement spousal death benefit is payable to a member's surviving spouse in case of
Death in the Line of Duty and is equal to the benefit the member would have received if
the member had reached his normal retirement date.
iv. Disability Benefit
In the event of participant Disability in the Line of Duty, VFD members may elect
payment of an actuarial reduced retirement benefit commencing anytime prior to the date
of normal retirement.
v. Deferred Vested Benefit
Upon termination of employment for any reason other than death or retirement, Police
and Town plan participants shall be entitled to a deferred vested benefit if certain age and
or service provisions are attained. The amount of deferred vested benefit shall be equal
to the benefit determined as for normal retirement based on earnings and service to the
date of termination, multiplied by the employee's vesting percentage. Employees
become fully vested with 10 years of service. A member who terminates employment
prior to satisfying certain age and or service requirements is entitled to a refund of his/her
accumulated contributions with interest.
2. Summary ofSignificant Accounting Policies
a. Basis ofAccounting
Pension Trust Fund fmancial statements are prepared on the accrual basis of accounting.
Employee contributions are recognized in the period in which the employee services are
performed, and employer contributions are recognized when due pursuant to contractual
requirements; investment income is recognized when earned; and gains and losses on sales
and exchanges of investments are recognized in the period of transaction. Benefit payments
and refunds are recognized when due and payable (incurred) in accordance with the terms of
the plans. Plan administrative costs are financed by net assets of the respective plans on a
pay-as":you-go basis. Financial activity of the pension plans is reported by the Town on a
calendar year basis.
79
EXHIBITK
2. Summary ofSignificant Accounting Policies (Continued)
b. Valuation ofPlan Investments
Pension Trust Fund investments are reported at fair value. Securities traded on national and
international exchanges are valued at the last reported sales price.
3. Funding Policy
Contribution rates are established by the Town and may be amended only with Town Council
approval. The Town may terminate the LOSAP at any time.
a. Employee
Required employee contributions to their respective plans are noted below.
Police Pension Plan
Police officers are required to contribute 6% of their W-2 earnings to the plan. Such
contributions are credited with interest at a rate of 5.5% per annum.
Town Pension Plan
Non-bargaining Town Hall employees, P.W. Supervisors, WTP Supervisors, School
Librarians, School Supervisors and Education Custodial, Secretarial and Maintenance union
members are required to contribute 7% of their earnings (pre-tax). Police Civilian Support
union members are required to contribute 7.9% of their earnings (pre-tax). Members of the
Professional and P.W. Clerical unions are required to contribute 7.5% of earnings (pre-tax).
Members of the P.W. and Parks union and School Nurse union members are required to
contribute 6.5% of their earnings (pre-tax). All other participants are required to contribute
4% of their earnings (post-tax). Such contributions are credited with interest at a rate of 6%
per annum.
LOSAP
Members of the VFD are not required to contribute to the plan.
80
EXHIBITK
3. Funding Policy (Continued)
b. Employer
Police and Town Pension Plans
The Town is required to contribute the remaining amounts necessary to fmance plan benefits
for its employees. Employer contributions to the pension plans of $1,025,928 Police, and
$1,509,046 Town were determined based on actuarial valuations as of January 1, 2009, using
the Projected Unit Credit actuarial cost method. Employer contributions fund normal cost
(after deducting expected employee contributions) on a current basis and the unfunded
actuarial accrued liability over a maximum 30 year period. The Town's current required
contributions as a percentage of annual covered plan payroll are 24.53% for the Police Plan
and 10.89% for the Town Plan.
LOSAP
The Town shall contribute an actuarial determined amount necessary to fund current
obligations of the LOSAP. In addition, employer contributions to fund the unfunded
actuarial accrued liability are to be made over a maximum 10-year period. Employer
contributions to the LOSAP of $120,129 were determined based on an actuarial valuation as
of January 1, 2009, using the frozen entry age actuarial cost method. The actuarially
determined contribution includes the retirement benefit of ten volunteers who received
retirement benefits in calendar year 2009.
4. Annual Pension Cost and Net Pension Obligations
In accordance with Statement No. 27, the Annual Pension Cost and Net Pension Obligation of the
Pension Plans for the current year are reported below:
EXHJBITK
IV. OTHER INFORMATION(CONTINUED)
4. Annual Pension Cost and Net Pension Obligations (Continued)
In addition, Statement No. 27 requires the percentage of Annual Pension Cost contributed and
Net Pension Obligations for the current and prior two years be reported:
Police Plan
Annual
Pension Actual Percentage Net
Fiscal Cost Employer ofAPC Pension
Year (APC) Contribution Contributed Obligation
12/31/09 $ 1,025,928 $ 1,025,928 100% $
12/31/08 1,107,688 1,107,688 100%
12/31/07 1,020,600 1,020,600 100%
Town Plan
Annual
12/31109 $ 1,509,046 $ 1,509,046 100% $
12/31108 1,750,784 1,750,784 100%
12/31/07 1,677,731 1,677,731 100%
LOSAP
Annual
12/31/09 $ 120,129 $ 120,129 100% $
12/31108 83,206 83,206 100%
12/31107 97,968 97,968 100%
82
EXIDBITK
5. Funding Status and Funding Progress
The funded status of the plan as of January 1, 2010 was as follows:
Over UAAL
January 1, Actuarial Actuarial (Unfunded) as a % of
Actuarial Value of Accrued AAL Funded Covered Covered
Valuation Assets Liability(AAL) (UAAL) Ratio Payroll Payroll
Date (a) (b) (a-b) (a/b) (c) a-b)/c)
POLICE PLAN
2010 $ 16,898,080 $ 27,986,776 $ (11,088,696) 60.4% $ 4,350,681 (254.9)%
TOWN PLAN
2010 $ 26,751,553 $ 46,632,119 $ (19,880,566) 57.4% $ 14,074,891 (141.2)%
2010 $ 1,018,412 $ 845,758 $ 172,654 120.4% N/A N/A
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future, and actuarially determined amounts are subject to continual
revision as actual results are compared to past expectations and new estimates are made about the
future. The required schedule of funding progress, immediately following the notes to the financial
statements (RSI) presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time, relative to the actuarial accrued liability for benefits.
6. Actuarial Assumptions
The information presented in the required supplementary schedules was determined as part of the
actuarial valuations at the dates indicated. Additional information as of the latest actuarial
valuation follows:
The following is a summary of certain significant actUarial assumptions and other PERS
information:
83
EXHJBITK
6. Actuarial Assumptions (Continued)
Actuarial valuation date
Actuarial cost method, effective 1/1/09
Amortization method, effective 1/1/09
Remaining amortization period
Asset valuation method
Actuarial assumptions:
Investment rate of return, effective 1/1/10
Projected salary increases*
*Inflation rate included
Police Town
Pension Pension
Plan Plan
01/01/1 0 01/01/10
Projected Unit Credit Projected Unit Credit
Level % of Paymil Level % of Payroll
Closed Closed
30 years 30 years
Refreshed Refreshed
5-year 5-year
Deferred Recognition Deferred Recognition
Without phase-in Without phase-in
7.5% 7.5%
5.0% 4.5%
3.5% 3.5%
LOSAP
01/01/10
Frozen Entry
Level Dollar
Closed
oyears
Market value
6.5%
N/A
N/A
The following assumption and plan changes decreased the 2009 required employer contribution
of the Police Pension Plan by $457,746 from $1,483,674 to $1,025,928. The changes include an
increase to the maximum benefit allowed for qualified police personnel from $185,000 to
$195,000 as specified by federal law; the change to the RP 2000 Mortality Table; the reduction to
the assumed Investment Return from 8.5% to 8.0%; a change in the Actuarial Cost Method from
Frozen Entry Age Normal Cost to Projected Credit Unit; and a change in the Amortization
Methodology from level dollar to level percentage of payroll.
The following assumption and plan changes decreased the AAL of the Town Pension Plan by
$503,091 from $2,012,137 to $1,509,046. The changes include the enhancement to the Water
Pollution Control Supervisors union maximum retirement benefit from 1.85% of Average
Monthly Earnings (AME) times 30 years of Credited Service (CS) to 2.0% of AME times 30
years of CS and the enhancement of the Police Civilians maximum retirement benefit from 1.85%
of AME times 25 years of CS to 2.0% of AME times 25 years of CS; the change to the RP 2000
Mortality Table; the reduction to the assumed Investment Return from 8.5% to 8.0%; a change in
the Actuarial Cost Method from Frozen Entry Age Normal Cost to Projected Credit Unit; and a
change in the Amortization Methodology from level dollar to level percentage of payroll.
84
EXHIBITK
6. Actuarial Assumptions (Continued)
The following assumption and plan changes increased the Actuarial Accrued Liability (AAL) of
the Police Pension Plan by $1,560,898 from $26,425,878 to $27,986,776. The changes include
the reduction to the assumed Investment Return from 8.0% to 7.5%; a change in the Asset
Valuation Method to the Deferred Recognition Method; and a refreshment of the amortization
balances to a 30-year recognition period.
The following assumption and plan changes increased the AAL of the Town Pension Plan by
$2,430,901 from $44,201,218 to $46,632,119. Plan benefit changes that affected the January 1,
2010 AAL of the Town Pension Plan include the enhancement to the Public Works Supervisors
union maximum retirement benefit from 2.00% of Average Monthly Earnings (AME) times 35
years of Credited Service (CS) to 2.20% of AME times 35 years of CS (capped at 70%); the
enhancement of the Waste Treatment Plant Supervisors union maximum retirement benefit from
2.00% of AME times 30 years of CS to 2.20% of AME times 35 years of CS (capped at 70%);
the enhancement to the BOE Supervisors union maximum retirement benefit from 2.0% of
Average Monthly Earnings (AME) times 30 years of Credited Service (CS) to 2.0% of AME
times 35 years of CS; the reduction of required Professional union employee contributions from
8.15% of wages to 7.5%; the increase in required P.W. Clerical employee contributions from
6.5% of wages to 7.5%; the increase in required employee contributions of the BOE and WPC
Supervisors unions from 6.5% of wages to 7.0% of wages; the reduction to the assumed
Investment Return from 8.0% to 7.5%; a change in the Asset Valuation Method to the Deferred
Recognition Method; and a refreshment of the amortization balances to a 30-year recognition
period.
There were no plan benefit or assumption changes that affected either the required employer
contribution for the LOSAP that was calculated on January 1, 2009 or the January 1, 2010 AAL
of the LOSAP.
85
7. Plan Statements
Statement of Fund Net Assets
Pension Trust Fuuds
December 31,2009
EXHIBITK
Police
Pension
Town
Pension
Volunteer
Firefighters
Length of
Award
(LOSAP) Total
Assets:
Investments, at fair value:
Pooled fixed income
$ 4,769,928 $ 7,959,816 $ $ 12,729,744
Mutual funds:
Domestic equity 5,909,813 8,025,933 13,935,746
International equity 1,331,694 2,014,167 255,247 3,601,108
Corporate bond 902,256 1,019,503 1,921,759
Money market 763,165 763,165
Guarenteed investment account 1,718,799 5,196,900 6,915,699
Total assets 14,632,490 24,216,319 1,018,412 39,867,221
Liabilities:
Accounts payables 6,397 8,738 15,135
Net Assets:
Held in Trust for Pension Benefits
$ 14,626,093 $ 24,207,581 $ 1,018,412 $ 39,852,086
86
EXIDBITK
7. Plan Statements (Continued)
Statement of Changes in Plan Net Assets
Pension Trust Funds
For the year ended December 31,2009
Volunteer
Firefighters
Length of
Police Town Award
Pension Pension (LOSAP) Total
Additions:
Contributions:
Employer $ 1,025,928 $ 1,509,046 $ 120,129 $ 2,655,103
Employee 289,996 972,621 1,262,617
Total contributions 1,315,924 2,481,667 120,129 3,917,720
Net investment income 2,163,729 3,257,017 184,162 5,604,908
Total additions 3,479,653 5,738,684 304,291 9,522,628
Deductions:
Benefit payments/annuity
purchases 1,573,878 1,673,401 22,596 3,269,875
Refund of contributions 14,017 112,943 126,960
Administrative expense 51,206 80,007 9,063 140,276
Total deductions 1,639,101 1,866,351 31,659 3,537,111
Change in net assets 1,840,552 3,872,333 272,632 5,985,517
Net assets - January 1, 2009 12,785,541 20,335,248 745,780 33,866,569
Net Assets - December 31, 2009
$ 14,626,093 $ 24,207,581 $ 1,018,412 $ 39,852,086
87
EXIDBITK
D. Other Post-Employment Benefits Plan
1. Plan Description
The Town administers 3 single-employer, post retirement healthcare plans for the Town, Police and
Board of Education, for the Town of Vernon Other Post Employment Benefits (OPEB). The plans
provide medical, dental and prescription benefits for eligible retirees and their spouses.
2. Benefit Provisions
a. Benefit Provisions
The plan provides for medical, dental and prescription benefits for all eligible Town, Police
and Board of Education retirees and their spouses. Benefits and contributions are established
by contract and may be amended by union negotiations.
b. Employer Contributions
The Town's contributions are actuarially determined on an annual basis using the projected
unit credit method. The Police, Town and Board of Education's total plan contribution was
$649,000.
c. Employee Contributions
There are no employee contributions to the plan.
3. Funded Status and Funding Progress
The funded status of the plan as of July 1, 2008 was as follows (no valuation was performed in July
2009):
[(A-B)/e]
(B) (A-B) OVER (UNDER)
(A) ACTUARIALLY OVER! (NB) FUNDED AAL AS
ACTUARIAL ACTUARIAL ACCRUED (UNDER) FUNDED (C) APERCENTAGE
VALUATION VALUE OF LIABILITY FUNDED AAL COVERED OF COVERED
DATE ASSETS (AAL) AAL RATIO PAYROLL PAYROLL
POLICE
July 1,2008 $ $3,071,000 $(3,071,000) 0% $ 3,352,315 (91.61)%
TOWN
July 1, 2008 $ $2,128,000 $(2,128,000) 0% $ 8,275,348 (25.71)%
BOARD OF EDUCATION
July 1,2008 $ $8,194,000 $(8,194,000) 0% $28,991,599 (28.26)%
88
EXHlBITK
D. Other Post-Employment Benefits Plan (Continued)
3. Funded Status and Funding Progress (Continued)
Actuarial valuations involve estimates of the value of reported amounts and assumptions about the
probability of events far into the future, and actuarially determined amounts are subject to continual
revision as actual results are compared to past expectations and new estimates are made about the
future. The required schedule of funding progress, immediately following the notes to the fmancial
statements (RSI) presents multiyear trend information about whether the actuarial value of plan
assets is increasing or decreasing over time, relative to the actuarial accrued liability for benefits.
4. Actuarial Methods andAssumptions
Projections of benefits are based on the substantive plan (the plan as understood by the employer
and plan members) and include the types of benefits in force at the valuation date and the pattern of
sharing benefit costs between the employer and plan members to that point. The projection of
benefits for fmancial reporting purposes does not explicitly incorporate the potential effects of legal
or contractual funding limitations on the pattern of cost sharing between the employer and plan
members in the future. Actuarial calculations reflect a long-term perspective. Consistent with that
perspective, actuarial methods and assumptions used include techniques that are designed to reduce
short-termvolatility in actuarially accrued liabilities and the actuarial value of assets.
The data presented in the schedules of funding progress and schedules of contributions were
determined as part of the actuarial valuation at the date indicated. Additional information for all
plans as of the latest valuation date is as follows:
VALUATION DATE
ACTUARIAL COST METHOD
AMORTIZATION METHOD
REMAINING AMORTIZATION PERIOD:
Police
Town
Board of Education
ACTUARIAL ASSUMPTIONS:
Investment rate of return - Town and Police
Investment rate of return - Board of Education
Healthcare inflation rate:
Initial
Ultimate
89
July 1, 2008
Projected Unit Credit
Level Percentage
30 years closed
30 years closed
30 years closed
4.0%
4.0%
7.0%
4.4%
D. Other Post-Employment Benefits Plan (Continued)
5. AnnualOPEB Cost andNet OPEB Obligation (NOO)
The changes in the NOO were as follows:
POLICE
BOARD
OF
TOWN EDUCATION
EXHIBITK
TOTAL
Annual required contribution......................... $ 259,000 $ 215,000 $ 643,000 $1,117,000
Interest on net OPEB obligation.................... 4,800 4,000 12,200 21,000
Adjustment to annual required contribution .. 4,200) ( 3,600) ( 11,200) ( 19,000)
Annua10PEB cost ......................................... 259,600 215,400 644,000 1,119,000
Contributions made........................................ 160,000 97,000 392,000 649,000
Change in net OPEB obligation..................... 99,600 118,400 252,000 470,000
Net OPEB obligation - July 1, 2009 .............. 107,000 127,000 294,000 528,000
Net OPEB obligation - June 30, 2010 ........... $ 206,600 $ 245.400 $ 546,000 $ 998,000
6. Two Year Trend Information
YEAR
ENDING
JUNE 30
POLICE
2010
2009
TOWN
2010
2009
BOARD OF EDUCATION
2010
2009
ANNUAL
OPEB
COST
(AOe)
$259,600
249,000
$215,400
206,000
$644,000
618,000
90
PERCENTAGE
OFAOC
CONTRIBUTED
61.6%
57.0%
45,0%
38.3%
60.9%
52.4%
NET
OPEB
OBLIGATION
$ 206,600
107,000
$ 245,400
127,000
$ 546,000
294,000
EXHlBITK
E. On-Behalf Payments
The amount of the State Teachers' Retirement Plan contribution recognized in the General Fund
intergovernmental revenues and education expenditures for contributions made by the State on-
behalf of the Town's teachers was $3,523,113.
F. Subsequent Events
On September 15, 2010, the Town issued Bond Anticipation Notes of $6,270,000 to retire BANs
maturing on September 15, 2010 of $3,710,000 ($740,000 public bond improvements and
$2,970,000 school bond improvements). Of the $6,270,000, $900,000 were issued to fund short-
term road, bridge, sidewalk and drainage improvements (general purpose) and $5,370,000 were
issued to fund short-term school renovation costs. The September 15, 2010 BANs mature on
January 19, 2011, and were issued at an interest rate of 1.0%, a yield of .414%, and at a premium of
$12,656. These BANs are expected to be permanently financed with general purpose and school
bond financing in January 2011. BAN premiums will be utilized to offset BAN interest expense.
G. Prior Period Adjustment
The beginning net assets of the Governmental and Business- Type Activities were restated as follows:
GOVERNMENTAL
ACTIVITIES
BUSINESS-TYPE
ACTIVITIES
BALANCE JUNE 30, 2009
To adjust for prior year portion ofthe Internal
Service Fund related to Business-Type
Activities .
BALANCE JULY 1, 2009
91
$
$
102,102,869
(388,124)
101,714,745
$
$
14,510,110
388,124
14,898,234
Required
Supplementary
Information
GENERAL FUND
SCHEDULE OF REVENUES AND OTHER FINANCING SOURCES
BUDGET AND ACTUAL
RSI-l
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
Tax revenue
Current year taxes $ 52,459,235 $ 52,459,235 $ 52,845,517 $ 386,282
Prior year taxes 615,000 615,000 579,515 (35,485)
Supplemental motor vehicle tax 565,000 565,000 422,550 (142,450)
Interest and lien fees 320,000 320,000 356,470 36,470
Warrant revenue 200 200 32,801 32,601
Liens 6,000 6,000 4,874 (1,126)
Total tax revenue 53,965,435 53,965,435 54,241,727 276,292
Intergovernmental
Civil preparedness grant 9,750 9,750 10,212 462
Bullet Proof Vest grant 2,500 2,500 6,368 3,868
Community services block grant 22,015 22,015 20,841 (1,174)
ARRA Education SFSF 1,622,677 1,622,677
ARRA Government Service ECS 894,670 894,670
Education cost sharing 17,645,165 17,645,165 14,931,530 (2,713,635)
Public pupil transportation 350,000 350,000 193,626 (156,374)
Non-public pupil transportation 22,000 22,000 32,867 10,867
Vocational Agriculture 118,000 118,000 112,693 (5,307)
Student Based Suppplement grant 128,580 128,580
Special ed. - State agency placement 314,640 314,640
Special ed. - Excess student based grant 448,725 448,725
Regular ed. - State agency placement 78,829 78,829
School construction grants - Principal 231,686 231,686 231,686
School construction grants - Interest 21,151 21,151 21,151
Medicaid reimbursement 48,000 48,000 47,156 (844)
Pilot - Colleges and hospitals 357,528 357,528 353,111 (4,417)
Pilot - State owned property 227,992 227,992 228,378 386
Pilot- Boat tax reimbursement 10,549 10,549 5,405 (5,144)
Pilot - Shelter rent 22,000 22,000 21,950 (50)
Tax relief - Elderly circuit breaker 157,000 157,000 147,564 (9,436)
Tax relief - Disability exemption 4,300 4,300 3,179 (1,121)
Tax relief - Veterans exemption 24,328 24,328 22,703 (1,625)
Tax relief - New mfg. mach. and equipment 70,000 70,000 99,240 29,240
Mashantucket Pequot and Mohegan grant 250,987 250,987 241,814 (9,173)
Property Tax Relief grant 7,417 7,417
Telephone tax sharing 149,859 149,859 80,419 (69,440)
Judicial reimbursement - Parking 60 60 70 10
Judicial reimbursements 100 100 100
Special reimbursements - Permits 200 200 216 16
Driving Under the Influence grant 42,000 42,000 25,371 (16,629)
Motor Vehicle Violation surcharge 15,000 15,000 16,930 1,930
Historic Document Preservation Grant 10,000 10,000 (10,000)
Other - State grants 10,000 10,000 2,327 (7,673)
Total intergovernmental 19,822,170 19,822,170 20,352,445 530,275
(Continued)-1
92
GENERAL FUND
SCHEDULE OF REVENUES AND OTHERFINANCING SOURCES
BUDGET AND ACTUAL
RSI-l
Budgeted Amounts Variance
with Final
Original Final Actual Budget
Charges for services
Town Clerk recording fees $ 370,000 $ 370,000 $ 437,628 $ 67,628
Vital statistics 500 500 (500)
Vital fees 12,000 12,000 (12,000)
Historic document preservation 13,050 13,050 13,605 555
Farmland Preservation surcharge 167,795 167,795
Printing and copying fees. 800 800 1,072 272
Finance administration fee 11,000 11,000 11,000
Planning and zoning fees 5,000 5,000 9,526 4,526
Conservation fees 1,600 1,600 3,062 1,462
Assessor fees 3,600 3,600 2,879 (721)
Tax Collection fees 30,000 30,000 (30,000)
Police - Special services 10,000 10,000 195,034 185,034
Fingerprint fees 2,500 2,500 (2,500)
Fire Marshal - services 1,050 1,050 482 (568)
Recycling 32,000 32,000 39,955 7,955
Recycling bin promotion 2,500 2,500 (2,500)
Bulky waste pickup 15,750 15,750 11,370 (4,380)
Other maintenance and development 20,000 20,000 13,897 (6,103)
Yankee Gas - administrative allocation 1,800 1,800 1,135 (665)
Energy application administration 8,925 8,925
Housing Rehab Admininstration 3,000 3,000 1,368 (1,632)
Recreation - Other 2,819 2,819
Tuition - Special education 32,100 32,100
Tuition - Vo-ag 448,000 448,000 398,576 (49,424)
Tuition - Special education Vo-ag 92,000 92,000 48,228 (43,772)
Tuition - Individual 13,229 13,229
School use fee 60,000 60,000
Other - Education community 6,000 6,000 87,684 81,684
Total charges for services 1,082,150 1,082,150 1,561,369 479,219
(Continued)-2
93
GENERAL FUND
BUDGET AND ACTUAL
. FOR THE YEAR ENDED JUNE 30, 2010
RSI-1
Budgeted Amounts Variance
with Final
Original Final Actual Budget
Licenses and permits
Building permits $ 335,668 $ 335,668 $ 337,920 $ 2,252
Zoning Review 300 300 275 (25)
ZBA Fees 2,300 2,300 4,140 1,840
Zoning Permits 8,000 8,000 6,895 (1,105)
Town Clerk - License surcharge 3,280 3,280 2,438 (842)
Refuse licensing 8,000 8,000 6,500 (1,500)
Transfer station permits 73,000 73,000 74,495 1,495
Driveway & road cut permits 6,800 6,800 8,985 2,185
Total licenses and permits 437,348 437,348 441,648 4,300
Fines and penalties
Parking tags 10,430 10,430 13,008 2,578
Returned check charge 200 200 (200)
Total fines and penalties 10,630 10,630 13,008 2,378
Interest on investments
General Fund 110,000 110,000 41,946 (68,054)
Teachers' Retirement Board 200 200 167 (33)
Total interest on investments 110,200 110,200 42,113 (68,087)
Other revenue
Rental income - Annex 24,000 24,000 24,000
Rental income - Senior Center 200 200 (200)
Rental management fee 50,000 50,000 50,000
Proceeds from sale ofproperty 9,715 9,715
Medical insurance reimbursement 223,192 223,192 207,568 (15,624)
Insurance reimbursements 12,964 12,964
Gasoline reimbursement 55,069 55,069 69,959 14,890
Tolland - East lEast Main St. Sewers 41,221 41,221 41,221
Lease - Ellington pump station 5,821 5,821 6,243 422
Miscellaneous 20,000 20,000 18,296 (1,704)
Total other revenue 419,503 419,503 439,966 20,463
Total revenues 75,847,436 75,847,436 77,092,276 1,244,840
(Continued)-3
94
GENERAL FUND
BUDGET AND ACTUAL
RSI-l
Budgeted Amounts
Original Final Actual
Variance
with Final
Budget
Other financing sources
Recreation programs $
Sewer assessments - Ord. 167
Sewer assessments - Ord. 201
Ambulance services
Interest on investments-Insurance Exchange
Interest on investments-Town Aid roads
Interest on investments-School Readiness
Interest on investments-Post Employment
Cultural arts program
Interest on investments-Sewer Assessments
Total Special Revenue Funds
71,400 $ 71,400 $ 71,400 $
57,000 57,000 57,000
23,000 23,000 23,000
82,000 82,000 82,000
510 510 268 (242)
1,500 1,500 263 (1,237)
40 40 4,717 4,677
800 800 817 17
4 4
1,210 1,210 549 (661)
237,460 237,460 240,018 2,558
Transfers in:
Debt Service Fund:
Interest on investments
Total other financing sources
Total revenues and
other financing sources
4,970
242,430
$ 76,089,866 $
4,970
242,430
76,089,866
1,838
241,856
77,334,132
(3,132)
(574)
$ 1,244,266
Budgetary revenues are different than GAAP revenue because:
State of Connecticut "on-behalf' contributions to the Connecticut State Teachers'
Retirement System for Town teachers are not budgeted
Total revenues and other financing sources as reported on the statement of revenues,
expenditures and changes in fund balances - governmental funds Exhibit D
95
3,523,113
$ 80,857,245
(Concluded)-4
GENERAL FUND
SCHEDULE OF EXPENDITURES AND OTHER FINANCING USES
BUDGET AND ACTUAL
Budgeted Amounts Total
Outstanding Expenditures and
Original Final Expenditures Encumbrances Encumbrances
General government
Town Council $ 16,994 $ 21,544 $ 8,555 $ 10,900 $ 19,455
Probate court 14,110 26,506 14,539 11,966 26,505
Executive and administrative 723,101 748,775 674,985 45,699 720,684
Law 158,635 315,700 295,877 19,413 315,290
Registration 79,422 80,372 75,905 3,607 79,512
Elections - general 30,925 31,691 26,731 3,992 30,723
Elections - primary 1 1
Elections - referendum 6,600 8,494 5,538 2,500 8,038
Finance administration 411,013 467,951 434,754 33,124 467,878
Independent audit 41,500 48,485 45,135 3,350 48,485
'0
Treasury 2,355 51,046 49,426 1,475 50,901
0-
Purchasing 11,080 17,493 10,433 6,980 17,413
Assessment 262,415 280,457 256,456 19,000 275,456
Refunds - tax adjustments 29,000 33,000 32,859 32,859
Collector of Revenue 224,369 238,147 204,198 19,011 223,209
Revaluation 30,000 63,300 22,844 40,446 63,290
Town Clerk 270,337 452,703 406,163 33,533 439,696
Board of Assessment Appeals 2,700 2,700 2,400 2,400
Water Pollution Control Authority 13,461 13,461 13,461 13,461
Greater Hartford Transit District 3,851 3,851 3,647 3,647
Data processing 416,307 523,927 419,269 104,569 523,838
Total general government 2,748,176 3,429,604 3,003,175 359,565 3,362,740
Community development
Town Planner - Administration 225,616 238,944 222,003 11,668 233,671
RSI-2
Variance
with Final
Budget
. $ 2,089
1
28,091
410
860
968
1
456
73
145
80
5,001
141
14,938
10
13,007
300
204
89
66,864
5,273
(Continued)-l
RSI-2
GENERAL FUND
BUDGET AND ACTUAL
Budgeted Amounts Total Variauce
Outstanding Expenditures and with Final
Original Final Expenditures Encumbrances Encumbrances Budget
Public safety
Police $ 5,742,805 $ 5,929,208 $ 5,676,153 $ 49,534 $ 5,725,687 $ 203,521
School crossing guards 64,820 64,820 57,148 57,148 7,672
Traffic authority 317,960 377,321 247,350 101,587 348,937 28,384
Fire fighting and administration 1,091,074 1,246,977 1,209,850 15,899 1,225,749 21,228
Fire Marshal 87,516 88,016 86,153 72 86,225 1,791
Building inspection 261,876 287,521 271,167 5,030 276,197 11,324
Emergency Management 43,530 43,717 38,717 38,717 5,000
Animal control 106,924 115,544 111,924 Ill,924 3,620
Total public safety 7,716,505 8,153,124 7,698,462 172,122 7,870,584 282,540
'0
'I
Maintenance and development
Public Works administration 576,468 603,088 592,602 7,560 600,162 2,926
General maintenance 1,246,202 1,259,825 1,235,368 7,869 1,243,237 16,588
Equipment maintenance 698,102 705,080 673,273 8,244 681,517 23,563
Maintenance of gov't buildings 811,162 799,674 754,409 16,068 770,477 29,197
Snow removal 194,740 259,740 257,285 101 257,386 2,354
Refuse collection and disposal 1,344,120 1,308,514 1,171,01l 27,136 1,198,147 110,367
Recycling 364,041 390,041 380,130 7,904 388,034 2,007
Condominium refuse 5,046 5,046 5,046 5,046
Tree Warden 10,680 12,180 1l,575 11,575 605
Leaf collection program 117,695 110,795 101,052 101,052 9,743
Engineering admin. services 267,718 275,668 269,544 5,821 275,365 303
Total maintenance and development 5,635,974 5,729,651 5,451,295 80,703 5,531,998 197,653
(Continued)-2
RSI-2
GENERAL FUND
BUDGET AND ACTUAL
Budgeted Amounts Total Variance
Original Final Expenditures Encumbrauces Encumbrances Budget
Human services
North Central Health District $ 117,592 $ 117,592 $ 117,591 $ $ 117,591 $
Visiting Nurses and Health Services 17,000 19,720 16,748 2,972 19,720
Hockanurn Valley Community Council 165,000 174,086 173,719 367 174,086
Child Guidance Clinic 11,000 11,000 11,000 11,000
Exchange Club-Prevent Child Abuse 8,000 8,000 8,000 8,000
Hockanurn Industries 7,000 7,000 7,000 7,000
MARC, Inc. of Manchester 4,000 4,000 4,000 4,000
Shelter Services 9,000 9,000 3,804 5,196 9,000
Connecticut Legal Services 4,000 4,000 4,000 4,000
Hartford Interval House 2,500 2,500 2,500 2,500
'0 YWCA Sexual Assault Services 1,500 1,500 1,500 1,500
00
Hockanurn Valley School Readiness 4,000 4,000 4,000 4,000
Social services administration 228,793 228,877 226,517 226,517 2,360
Youth services 211,819 235,193 228,332 833 229,165 6,028
Senior center 127,596 128,283 114,657 180 114,837 13,446
Total human services 918,800 954,751 923,368 9,548 932,916 21,835
Parks, recreation and cnlture
Recreationadrrllnffitration 401,865 409,236 405,879 1,227 407,106 2,130
Public celebration 15,600 15,600 11,217 4,325 15,542 58
Parks maintenance 572,310 630,065 608,904 8,074 616,978 13,087
Art commission 11,840 13,020 7,415 5,605 13,020
Historical Society 5,000 5,000 5,000 5,000
Rockville Public Library 300,000 300,000 300,000 300,000
Total parks, recreation and culture 1,306,615 1,372,921 1,338,415 19,231 1,357,646 15,275
(Continued)-3
GENERAL FUND
BUDGET AND ACTUAL
RSI-2
Townwide
Social security and Medicare $ 935,000 $ 894,910 $ 881,270 $ $ 881,270 $ 13,640
Pension 2,047,000 2,199,392 1,768,716 430,613 2,199,329 63
Group insurance 2,766,250 2,866,250 2,719,157 120,000 2,839,157 27,093
Unemployment compensation 24,000 35,782 14,761 7,021 21,782 14,000
Municipal insurance 696,292 702,892 701,883 900 702,783 109
Contingency 136,000 20,104 750 750 19,354
Housing Authority sewer subsidy 46,057 56,250 52,267 3,983 56,250
Total townwide 6,650,599 6,775,580 6,138,804 562,517 6,701,321 74,259
\Q
Subtotal - General Government 25,202,285 26,654,575 24,775,522 1,215,354 25,990,876 663,699
\Q
Debt service
Debt service - principal 1,594,830 1,478,511 1,280,829 188,634 1,469,463 9,048
Debt service - interest 1,810,546 1,858,563 1,810,545 7,602 1,818,147 40,416
Total debt service 3,405,376 3,337,074 3,091,374 196,236 3,287,610 49,464
Capital improvements
Capital improvements - Town 46,120 324,682 264,740 57,925 322,665 2,017
Subtotal - Cap. improve. / Debt Service 3,451,496 3,661,756 3,356,114 254,161 3,610,275 51,481
(Continued)-4
RSI-2
GENERAL FUND
BUDGET AND ACTUAL
Education
Regular instruction $ 18,674,923 $ 18,724,795 $ 18,562,773 $ 79,410 $ 18,642,183 $ 82,612
Special Education instruction 3,842,480 3,914,385 3,767,653 28,787 3,796,440 117,945
Continuing Education 254,468 254,468 252,414 252,414 2,054
Special Education program support 2,410,133 2,984,750 2,614,215 35,234 2,649,449 335,301
Social Work services 546,065 546,102 489,646 3,000 492,646 53,456
Guidance services 646,080 646,080 573,760 4,929 578,689 67,391
Health services 383,583 383,847 390,293 390,293 (6,446)
Psychological services 614,990 637,427 582,423 5,789 588,212 49,215
Speech pathology & audio services 539,921 534,657 486,453 15,937 502,390 32,267
Instructional program support 27,774 33,166 23,669 723 24,392 8,774
.....
Library / Media services 371,285 385,534 340,738 25,336 366,074 19,460 c:::.
c:::.
Curriculum development 1,140,184 1,211,835 1,103,834 19,148 1,122,982 88,853
Superintendent's office 448,905 448,905 419,210 466 419,676 29,229
Board of Education - Elected 145,452 106,818 65,897 65,897 40,921
Principal office services 1,947,295 1,965,130 1,904,528 21,842 1,926,370 38,760
Business office 436,051 449,189 392,275 6,325 398,600 50,589
Capital Reserve 25,000 25,000 (25,000)
Building / Plant operations 4,099,659 4,173,859 3,722,252 68,513 3,790,765 383,094
Student transportation services 2,073,234 2,082,672 2,321,427 30,825 2,352,252 (269,580)
General contra1 166,748 193,100 180,155 5,067 185,222 7,878
Information systems 254,563 293,666 293,666 293,666
System-wide fringe benefits 6,109,550 6,814,768 6,789,074 10,927 6,800,001 14,767
Extra curricular student activities 504,356 504,356 474,690 2,006 476,696 27,660
Contingency 198,233 49,552 3,668 3,668 45,884
Total Education 45,835,932 47,339,061 45,779,713 364,264 46,143,977 1,195,084
Total Expenditures 74,489,713 77,655,392 73,911,349 1,833,779 75,745,128 1,910,264
(Continued)-5
GENERAL FUND
BUDGET AND ACTUAL
RSI-2
Budgeted Amouuts
Original Final Expenditures
Outstanding
Encumbrances
Total
Expenditures and
Encumbrances
Variance
with Final
Budget
Other finaucing uses
Transfers out:
Town Clerk - Preservation surcharge $ $ 4,535 $ 4,535
Planning - Open space 10,000 10,000 10,000
Community & Economic development 90,881 90,881 90,881
Animal control 22,000 22,000 22,000
Social services administration 7,500 7,500 7,500
Capital improvements - Town 30,000 933,036 933,036
Education 394,000
.....
Vernon Cemetery Commission 135,483 135,483 135,483
<:::>
.....
Debt Service Fund:
Debt service - principal WTP 1,133,101 1,133,101 1,133,101
Debt service - interest WTP 171,188 171,188 171,187
Total other financing uses 1,600,153 2,507,724 2,901,723
Total expenditures and
other financing uses $76,089,866 $80,163,116 $76,813,072
Budgetary expenditures are different than GAAP expenditures because:
State of Connecticut "on-behalf" payments to the Connecticut State Teachers' Retirement System for Town
teachers are not budgeted
Encumbrances for purchases and commitments ordered but not received are reported in the year the order
is placed for budgetary purposes, but in the year received for financial reporting purposes
Total expenditures and other financing uses as reported on the statement of revenues, expenditures and
changes in fund balances - governmental funds - Exhibit D
$
$1,833,779
$ 4,535
10,000
90,881
22,000
7,500
933,036
394,000
135,483
1,133,101
171,187
2,901,723
78,646,851
3,523,113
(1,833,779)
$80,336,185
$
(394,000)
(393,999)
$ 1,516,265
(Concluded)-6
RSI-3
TOWN QF VERNON CONNECTICUf
REQUIRED SUPPLEMENTARY INFORMATION
VERNON RETIREMENT SYSTEM
SCHEDULE OF FUNDING PROGRESS
POLICE PLAN
A B (A-B) (NB) C [(A-B)/C]
ACTUARIALLY
ACCRUED OVER OVERIUNDER
ACTUARIAL ACTUARIAL LIABILITY (AAL) (UNDER) FUNDED FUNDED AAL AS
VALUATION VALUE OF PROJECTED UNIT FUNDED AAL COVERED A PERCENTAGE OF
DATE ASSETS CREDIT AAL RATIO PAYROLL COVERED PAYROLL
JANUARY I,
2005 $ 15,110,913 $ 20,331,260 $ (5,220,347) 74.3% $ 3,739,097 (139.6%)
2006 15,867,683 21,238,553 (5,370,870) 74.7% 3,512,784 (152.9%)
2007 16,600,994 22,516,606 (5,915,612) 73.7% 3,701,061 (159.8%)
......
17,438,418 23,957,282 (6,518,864) 728% 3,927,066 (166.0%) <::> 2008
""
2009 15,349,405 24,985,131 (9,635,726) 61.4% 4,181,987 (230.4%)
2010 16,898,080 27,986,776 (11,088,696) 60.4% 4,350,681 (254.9%)
TOWN PLAN
A B (A-B) (NB) C [(A-B)/C]
ACTUARIALLY
ACTUARIAL ACTUARIAL LIABILITY (AAL) (UNDER) FUNDED FUNDED AAL AS
VALUATION VALUE OF PROJECTED UNIT FUNDED AAL COVERED A PERCENTAGE OF
DATE ASSETS CREDIT AAL RATIO PAYROLL COVERED PAYROLL
JANUARY I,
2005 $ 17,319,759 $ 27,219,959 $ (9,900,200) 63.6% $ 11,910,153 (83.1%)
2006 19,178,993 32,510,899 (13,331,906) 59.0% 12,469,300 (106.9%)
2007 21,441,5 II 35,308,131 (13,866,620) 60.7% 12,743,672 (108.8%)
2008 23,916,877 38,366,205 (14,449,328) 62.3% 13,408,005 (107.8%)
2009 24,412,641 40,929,548 (16,516,907) 59.6% 13,857,289 (119.2%)
2010 26,751,553 $46,632,II9 (19,880,566) 57.4% 14,074,891 (141.2%)
(Continued)
A
ACTUARIAL ACTUARIAL
VALUATION VALUE OF
DATE ASSETS
JANUARY 1,
2005 $ 533,750
2006 656,023
2007 809,550
......
2008 962,663 <::>
w
2009 745,780
2010 1,018,412
TOWN OF VERNON CONNECTIC(lf
VERNON RETIREMENT SYSTEM
LOSAP
B (A-B) (AlB)
ACTUARIALLY
ACCRUED OVER
LIABILITY (AAL) (UNDER) FUNDED
PROJECTED UNIT FUNDED AAL
CREDIT AAL RATIO
$ 808,727 $ (274,977) 66.0%
890,692 (234,669) 73.7%
990,973 (181,423) 81.7%
1,079,832 (1l7,169) 89.1%
806,210 (60,430) 92.5%
845,758 172,654 120.4%
C
COVERED
PAYROLL
N/A
N/A
N/A
N/A
N/A
N/A
[(A-B)/C]
OVERIUNDER
FUNDED AAL AS
A PERCENTAGE OF
COVERED PAYROLL
N/A
N/A
N/A
N/A
N/A
N/A
(Concluded)
ACTUARIAL
VALUATION
DATE
JULY I,
2008
2009
ACTUARIAL
VALUATION
DATE
JULy I,
2008
2009
ACTUARIAL
VALUATION
DATE
JULY I,
2008
2009
RSI-4
TOWNOF VERNON CONNECTrcUT
VERNON OTHER POST EMPLOYMENT BENEFIT PLANS
POLICE OTHER POST EMPLOYMENT BENEFIT PLAN
A B (A-B) (NB) C [(A-B)/C]
ACTUARIALLY
ACTUARIAL LIABILITY (AAL) (UNDER) FUNDED FUNDED AAL AS
VALUE OF PROJECTED UNIT FUNDED AAL COVERED A PERCENTAGE OF
ASSETS CREDIT AAL RATIO PAYROLL COVERED PAYROLL
$ 3,071,000 $ (3,071,000) 0.0% 3,352,315 (91.61%)
N/A N/A N/A N/A N/A N/A
TOWN OTHER POST EMPLOYMENT BENEFIT PLAN
A B (A-B) (NB) C [(A-B)/C]
ACTUARIALLY
ACTUARIAL LIABILITY(AAL) (UNDER) FUNDED FUNDED AAL AS
$ $ 2,128,000 $ (2,128,000) 0.0% 8,275,348 (25.71%)
BOARD OF EDUCATION OTHER POST EMPLOYMENT BENEFIT PLAN
A B (A-B) (NB) C [(A-B)/C]
ACTUARIALLY
ACTUARIAL LIABILITY (AAL) (UNDER) FUNDED FUNDED AAL AS
$ 8,194,000 $ (8,194,000) 0.0% $ 28,991,599 (28.26%)
N/A - Not available due to biennial valuations.
RSI-5
SCHEDULE OF EMPLOYER CONTRIBUTIONS
VERNON RETIREMENT SYSTEMAND OTHER POST EMPLOYMENT BENEFIT PLANS
YEAR ANNUAL
ENDED REQUIRED ACTUAL PERCENTAGE
DECEMBER 31, CONTRlBUTION CONTRlBUTION CONTRlBUTED
PENSION PLANS
POLICE EMPLOYEES
2004 $ 822,023 $ 822,023 100.0%
2005 933,759 933,759 100.0%
2006 931,473 931,473 100.0%
2007 1,020,600 1,020,600 100.0%
2008 1,107,688 1,107,688 100.0%
2009 1,025,928 1,025,928 100.0%
TOWN
2004 $ 1,118,434 $ 1,118,434 100.0%
2005 1,190,512 1,190,512 100.0%
2006 1,583,333 1,583,333 100.0%
2007 1,677,731 1,677,731 100.0%
2008 1,750,784 1,750,784 100.0%
2009 1,509,046 1,509,046 100.0%
LOSAP
2004 $ 98,688 $ 98,688 100.0%
2005 86,265 86,265 100.0%
2006 95,012 95,012 100.0%
2007 97,968 97,968 100.0%
2008 83,206 83,206 100.0%
2009 120,129 120,129 100.0%
OTHER POSTEMPLOYMENT BENEFIT PLANS
POLICE
JUNE 30, 2009 $ 249,000 $ 142,000 57.0%
JUNE 30, 2010 259,000 160,000 61.8%
TOWN
JUNE 30, 2009 $ 206,000 $ 79,000 38.3%
JUNE 30, 2010 215,000 97,000 45.1%
BOARD OF EDUCATION
JUNE 30, 2009 $ 618,000 $ 324,000 52.4%
JUNE 30, 2010 643,000 392,000 61.0%
105
Supplemental
Schedules
General
Fund
The general fund is the principal fund of the Town and is used to account for all activities of the Town, except
those required to be accounted for in another fund. The general fund accounts for the normal recurring
activities of the Town (i.e., general government, public safety, public works, health, social services, recreation,
education, etc.). These activities are funded principally by property taxes, user fees and grants from other
governmental units.
GENERAL FUND
COMPARATIVE BALANCE SHEET
JUNE 30, 2010 AND 2009
2010
SCHEDULE 1
2009
ASSETS
Cash and cash equivalents $ 40,340 $ 697,928
Investments 10,443,021 10,364,088
Receivables, net:
Uncollected property taxes 1,281,734 1,373,298
Grants and other 891,434 966,108
Due from other funds 4,092,563 1,954,903
Total Assets $ 16,749,092 $ 15,356,325
LIABILITIES AND FUND BALANCE
Liabilities:
Accounts payable $ 1,513,258 $ 1,817,271
Accrued wages and benefits 559,911 277,649
Due to other funds 2,464,181 1,209,431
Deferred revenue 1,785,013 2,146,305
Tota1liabilities 6,322,363 5,450,656
Fund balance:
Reserved for encumbrances 1,833,779 1,538,649
Unreserved:
Designated for compensated absences 322,000 322,000
Undesignated 8,270,950 8,045,020
Total fund balance 10,426,729 9,905,669
Total Liabilities and Fund Balance $ 16,749,092 $ 15,356,325
106
SCHEDULE 2
REPORT OF THE TAX COLLECTOR
FOR THE YEARENDED JUNE 30, 2010
Uncollected Current Lawful Corrections Transfers Adjusted Collections Uncollected
Grand List Taxes Year (From) to Taxes Taxes
October 1, July 1, 2009 Levy Additions Deductions Suspense Collectible Taxes Interest Liens Total June 30,2010
2007 $ 744,062 $ $ 49,522 $ 50,676 $ 57,532 $ 685,376 $ 386,850 $ 79,798 $ 10,389 $ 477,037 $ 298,526
2006 304,795 1,976 4,891 52,563 249,317 126,298 54,804 953 182,055 123,019
2005 115,066 530 218 31,839 83,539 36,416 27,421 688 64,525 47,123
2004 35,112 (2,854) 37,966 17,472 7,283 952 25,707 20,494
2003 17,532 (2,028) 19,560 3,662 3,494 668 7,824 15,898
2002 13,759 (1,026) 14,785 2,181 2,642 646 5,469 12,604
2001 12,942 (54) 12,996 1,144 1,487 366 2,997 11,852
......
2000 12,356 248 12,108 800 1,115 282 2,197 11,308
<::>
~
1999 17,908 78 17,830 244 . 312 58 614 17,586
1998 17,043 348 16,695 12 23 35 16,683
1997 17,344 567 16,777 94 200 294 16,683
1996 17,254 514 16,740 146 330 476 16,594
1995 16,841 147 16,694 498 1,178 1,676 16,196
1994 15,642 (189) 15,831 189 5,095 5,284 15,642
1993 15,642 15,642
Total prior years 1,373,298 52,028 71,427 137,685 1,216,214 576,006 185,182 15,002 776,190 640,208
2008 53,957,129 142,094 186,424 3,206 53,909,593 53,268,067 171,289 22,674 53,462,030 641,526
Total all years $ 1373298 $ 53957129 $ 194122 $ 257851 $ 140891 $ 55125807 5 844 073 $ 356471 $ 37676 $ 54238220 $ 1 281 734
Nonmajor
Governmental
Funds
Special Revenue Funds
Special revenue funds are used to account for the proceeds of specific revenue sources that are designated or
legally restricted to expenditures for specific purposes. The nature and purpose of each Special Revenue Fund is
as follows:
Fund Funding Source Function
Cafeteria Sales of food, State and Federal subsidies Operation of the school cafeterias
Town Clerk Special Sportsmen license fees StateDEP
Insurance Exchange Casualty losses Insurance claims and deductibles
Town Aid Road State grant General Town road maintenance and
Connecticut Housing Partnership Program
Grant
Dog License Licenses and fees Animal control program
Ambulance Medical Services Ambulance services fees Paramedic and collection agency costs
Public Safety Complex Grant-in-Aid State grant Addition to ambulance building
Vernon Cemetery Commission Lot sales, related income, Town Council Cemetery maintenance
appropriation
Special Education Grants State and federal grants Educational purposes
Adult Basic Education Tuition State and local governments Adult education
General Assistance Local funds Welfare assistance
CDBG Small Cities Federal grant - DHUD and program income Community development programs
Housing and Community Development Federal grant - DHUD and program income Community development program
Downstream Developer fees Drainall:e improvements
Roosevelt Mill Cleanup Proiect State grants Mill Demolition and Remediation
Economic Development Local annual appropriation Community economic development
Amerbelle Mill Upgrades Federal grant Community development
Sidewalk Development Developer fees Town sidewalks
Sewer Assessment Levied sewer assessments Sewer bonded debt service
Sewer Connections Sewer construction and permit fees Sewer repairs and related expenditures
Medical Savings Reserve Town and demutualization proceeds Medical claims and expenses
Education Post Employment Insurance contributions Subsidize health insurance premiums
Parks and Recreation Programs Program Fees Parks and Recreation programs
Town Post Employment Insurance contributions Subsidize health insurance premiums
Talcottville Enhancements TCSP 010 Federal grant Community improvements
Miscellaneous Grants Various Education of the Blind, Youth Service
Bureau and State Asset Forfeiture
Miscellaneous Special Revenue Various Federal Forfeiture, Public Celebration and
Special Youth Activities Funds
NONMAJOR GOVERNMENTAL
Capital Projects
V ~ ' . I J I J . CONTINUED
The Capital Projects Fund is used to account for [mancial resources to be used for the acquisition or
construction of major capital facilities.
WTP Upgrade and Expansion Ordinance #199 Clean Water Fund loan/grant Upgrade and expansion ofWTP
River Street Bridge Renovations Project 146-160 State and Federal grants Renovation of bridge
Spring Street Bridge Renovations Project 146-159 State and Federal grants Renovation of bridge
Town Capital and Nonrecuning Grants and General Fund Capital projects or equipment
appropriation acquisition
Education Capital and Nonrecurring Town Council appropriations, State Capital improvements in school
grants system
Permanent Funds
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting government's programs.
Cemetery Trust Investment income Perpetual care
Memorial Trust Investment income Memorial care
SCHEDULE 3
TOWN OF VERNON CONNECTICUT (1 of 5)
COMBINING BALANCE SHEET
NONMAJORGOVERNMENTALFUNDS
JUNE 30, 2010
Town Town Ambulance Public Safety
Clerk Insurance Aid Dog Medical Complex
Cafeteria Special Exchange Road License Services Grant-Iu-Aid
Assets
Cash and cash equivalents $ 7,015 $ 425 $ 11,876 $ 707 $ 6,129 $ 25,909 $
Investments 24,681 112,290 198,468 16,550 51,822
Grants and other receivables 122,291 103,956 1,000 383,697
Sewer assessment receivable
Due from other funds 37 2,655
Inventory 30,464
Total Assets $ 184,451 $ 462 $ 228,122 $ 199,175 $ 26,334 $ 461,428 $
Liabilities and Fnnd Balances
Liabilities:
Accounts payable $ 22,340 $ 462 $ 92,556 $ 79,749 $ 13,678 $ 51,578 $
......
Other payables e;:,
00
Accrued wages and benefits
Due to other funds 268 263 1,399 30,502 860,500
Deferred and unearned revenue 383,697
Total liabilities 22,340 462 92,824 80,012 15,077 465,777 860,500
Fund Balances:
Reserved:
Contract commitments
Construction commitments 40,000
Inventory 30,464
Debt service
Endowments
Unreserved:
Undesigoated 131,647 135,298 119,163 11,257 (44,349) (860,500)
Total fund balances 162,111 135,298 119,163 11,257 (4,349) (860,500)
Total Liabilities and Fund Balances $ 184,451 $ 462 $ 228,122 $ 199,175 $ 26,334 $ 461,428 $
(Continued on next page)
SCHEDULE 3
TOWN OF VERNON CONNECTICUT (20rS)
COMBINING BALANCE SHEET (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Adult
Vernon Special Basic CDBG Housing and Roosevelt
Cemetery Education Education General Small Community Mill
Commission Grants Tnition Assistance Cities Development Downstream Cleanup Project
Assets
Cash and cash equivalents $ 227,374 $ 233,744 $ 199,801 $ 1,345 $ 312,154 $ 28,306 $ 34,950 $ 1,200
Investments 38,313
Grants and other receivables 2,500 11,404 112,301 102,788 405,233
Sewer assessment receivable
Due from other funds 1,015 612
Inventory
Total Assets $ 230,889 $ 245,760 $ 199,801 $ 1,345 $ 424,455 $ l3l,094 $ 73,263 $ 406,433
Liabilities and Fund Balances
Liabilities:
Accounts payable $ 150 $ 193,290 $ 32,506 $ $ 5,700 $ $ $ 143,198
.....
Other payables 20 3 14,027
<::::>
'0
Due to other funds 7,838 1,368 248,008
Deferred and unearned revenue 5,462 106,601 102,788
Total liabilities 7,988 203,102 62,152 113,669 102,788 405,233
Fund Balances:
Reserved:
Contract commitments 471,600 800 1,120 249,072
Construction commitments 250,000 2,007 26,503
Inventory
Debt service
Endowments
Unreserved:
Undesignated 222,901 42,658 137,649 1,345 (410,814) 25,499 45,640 (247,872)
Total fund balances 222,901 42,658 137,649 1,345 310,786 28,306 73,263 1,200
Total Liabilities and Fund Balances $ 230,889 $ 245,760 $ 199,801 $ 1,345 $ 424,455 $ 131,094 $ 73,263 $ 406,433
SCHEDULE 3
TOWN OF VERNON CONNECTICUT (30rS)
NONMAJORGOVERNMENTAL FUNDS
JUNE 30, 2010
Amerbelle Medical Education Parks and
Economic Mill Sidewalk Sewer Sewer Savings Post Recreation
Development Upgrades Development Assessment Connections Reserve Employment Programs
Assets
Cash and cash equivalents $ 10,087 $ $ 2,689 $ 1,439 $ $ $ $ 91,186
Investments 116,931 339,445 1,327,229 135,621 166,693
Grants and other receivables 9,400 3,414 50,000 10,304
Sewer assessment receivable 57,900
Due from other funds 457,845 93,413 2
Inventory
Total Assets $ 127,018 $ 9,400 $ 2,689 $ 856,629 $ 1,424,056 $ 185,621 $ 166,695 $ 101,490
Liabilities:
Accounts payable $ 12,939 $ 9,400 $ $ $ 4,876 $ $ $ II,52 I
.......
Other payables
.......
<::>
Accrued wages and benefits
Due to other funds 93,973 686 93,464
Deferred and unearned revenue 57,662 3,414 166,009
Total liabilities 12,939 9,400 151,635 8,290 166,695 104,985
Fund Balances:
Reserved:
Contract commitments 59,495
Constmction commitments 5,446 579,359
Inventory
Debt service 704,994
Endowments
Unreserved:
Undesignated 49,138 2,689 836,407 185,621 (3,495)
Total fund balances 114,079 2,689 704,994 1,415,766 185,621 (3,495)
Total Liabilities and Fund Balances $ 127,018 $ 9,400 $ 2,689 $ 856,629 $ 1,424,056 $ 185,621 $ 166,695 $ 101,490
SCHEDULE 3
TOWN OF VERNON CONNECTICUT (4ofS)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Special Revenue Funds Capital Projects Funds
WfP RiverS!. SpringS!.
Upgrade and Bridge Bridge
Town Talcottville Miscellaneous Expansion Renovations Renovations
Post Enhancements Miscellaneous Special Ordinance Project Project
Employment TCSPOI0 Grants Revenue Total 11199 146-160 146-159
Assets
Cash and cash equivalents $ 7,804 $ 7 $ 76,943 $ 249,606 $ 1,530,696 $ $ 8,583 $ 5,911
Investments 2,963 121,860 17,903 2,670,769 78,531
Grants and other receivables 2,666 293,205 8,000 1,622,159 428,658 467,600
Due from other funds 3,127 10 558,716
Inventory 30,464
Total Assets $ 10,767 $ 2,673 $ 495,135 $ 275,519 $ 6,470,704 $ 78,531 $ 437,241 $ 473,511
Liabilities:
Accounts payable $ $ $ 53,885 $ 2,502 $ 730,330 $ $ 220,199 $ 211,409
......
Other payables 2,245 2,667 18,962 17,374 39,578
......
......
Due to other funds 131 296,378 8,000 1,642,778 192,668 216,613
Deferred and unearned revenue 10,636 21,498 857,767 II
Total liabilities 10,767 2,245 375,813 10,502 3,285,195 430,241 467,611
Fund Balances:
Reserved:
Contract commitments 389,963 1,400 26,000 1,199,450 626,204 219,464
Construction commitments 903,315
Inventory 30,464
Debt service 704,994
Endowments
Unreserved:
Undesignated (389,535) 117,922 239,017 347,286 78,531 (619,204) (213,564)
Total fund balances 428 119,322 265,017 3,185,509 78,531 7,000 5,900
Total Liabilities and Fund Balances $ 10767 $ 2673 $ 495135 $ 275 19 $ 6,470704 $ 78,531 $ 437,241 $ 473,511
SCHEDULE 3
TOWN OF VERNON, CONNECTICUT (50f5)
COMBINING BALANCE SHEET (CONCLUDED)
NONMAJORGOVERNMENTALFUNDS
JUNE 30, 2010
Capital Projects Funds Permanent Funds
Town Educatiou Total
Capital Capital Nonmajor
and and Cemetery Memorial Interfund Governmental
Nonrecurring Nonrecnrring Total Trust Trnst Total Eliminations Fnnds
Assets
Cash and cash equivalents $ 82,967 $ I $ 97,462 $ 70,804 $ 37,387 $ 108,191 $ $ 1,736,349
Investments 1,494,709 259,928 1,833,168 1,590,915 1,590,915 6,094,852
Grants and other receivables 69,795 80,176 1,046,229 2,668,388
Due from other funds 865,904 394,000 1,259,904 (94,438) 1,724,182
Inventory 30,464
Total Assets $ 2,513,375 $ 734,105 $ 4,236,763 $ 1,661,719 $ 37,387 $ 1,699,106 $ (94,438) $ 12,312,135
Liabilities:
Accounts payable $ 43,245 $ $ 474,853 $ $ $ $ $ 1,205,183
......
Other payables 27,319 lI,768 96,039 1I5,001
......
"-' Accrued wages and benefits 35,358
Due to other funds 22,260 431,541 1,015 1,015 (94,438) 1,980,896
Deferred and unearned revenue 11 857,778
Total liabilities 92,824 lI,768 1,002,444 1,015 1,015 (94,438) 4,194,216
Fund Balances:
Reserved:
Contractcorrmlltments 229,246 62,822 1,137,736 2,337,186
Construction cOrrmlltments 2,1I4,798 131,736 2,246,534 3,149,849
Inventory 30,464
Debt service 10,944 10,944 715,938
Endowments 1,660,704 37,387 1,698,091 1,698,091
Unreserved:
Undesigoated 65,563 527,779 (160,895) 186,391
Total fund balances 2,420,551 722,337 3,234,319 1,660,704 37,387 1,698,091 8,1I7,919
Total Liabilities and Fund Balances $ 2,513,375 $ 734,105 $ 4,236,763 $ 1,661,719 $ 37,387 $ 1,699,106 $ (94,438) $ 12,312,135
(Concluded)
SCHEDULE 4
(1 of 5)
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
Town Town Ambulance Public Safety
Clerk Insurance Aid Dog Medical Complex
Cafeteria Special Excbange Road License Services Graut-In-Aid
Revenues:
Intergovernmental:
Federal $ 657,494 $ $ $ $ $ $
State 62,122 206,408
Local
Assessments
Sales 577,552
Charges for services 4,400 1,041,720
Licenses and permits 11,020 16,415
Gifts and contributions 5,000
Investment income 90 268 263 15 46
Other 112,440 78
Total revenues 1,297,258 11,020 112,708 206,671 25,830 1,041,844
Expenditures:
Current:
...... General government 11,020
......
...... Community development
Public safety 32,165 910,343
Maintenance and development 160,784
Human services
Parks, recreation and culture
Townwide 94,815 10,486
Education 1,300,836
Debt service
Capital outlay 37,037
Total expenditures 1,300,836 11,020 94,815 160,784 42,651 947,380
Excess (Deficiency) of Revenues
over Expenditures (3,578) 17,893 45,887 (16,821) 94,464
Transfers in 22,000
Transfers out (268) (263) (82,000)
Net other financing sources (nses) (268) (263) 22,000 (82,000)
Net Change in Fund Balances (3,578) 17,625 45,624 5,179 12,464
Fund Balances a!July 1, 2009 165,689 117,673 73,539 6,078 (16,813) (860,500)
Fund Balances a!June 30, 2010 $ 162,111 $ $ 135,298 $ 119,163 $ 11,257 $ (4,349) $ (860,500)
SCHEDULE 4
(2015)
CHANGES IN FUND BALANCES (CONTINUED)
Special Reveoue Fuuds
Adult
Vernon Special Basic CDGB Housing and Roosevelt
Cemetery Education Education General Small Community Mill
Commission Grants Tuition Assistance Cities Development Downstream Cleanup Project
Revenues:
Intergovernmental:
Federal $ $ 2,464,245 $ $ $ 463,501 $ $ $
State 82,535 239,498 623,104
Local 1,19'(,012
Assessments
Sales 31,525
Charges for services 54,466
Licenses and penoits
Gifts and contributions 2,000 3,563
Investment income 1,381 264
Other 5,325 100,000 11,226 3,433 1,200
Total revenues 94,697 2,546,780 1,536,510 3,563 474,727 3,433 264 624,304
Expenditures:
Current
....
General government
....
-l>.. Community development 469,687 623,104
Public safety
Maintenance and development 245,987 4,800
Human services ll,360
Parks, recreation and culture
Towowide 13
Education 2,571,295 1,451,903
Debt service
Capital outlay 340
Total e>qJenditures 246,327 2,571,308 1,451,903 ll,360 469,687 4,800 623,104
Excess (Deficiency) ofRevenues
over Expenditures (151,630) (24,528) 84,607 (7,797) 5,040 3,433 (4,536) 1,200
Transfers in 150,019 7,500
Transfers out
Net other financing sources (uses) 150,019 7,500
Net Change in Fund Balances (1,611) (24,528) 84,607 (297) 5,040 3,433 (4,536) 1,200
Fund Balances atJuly 1,2009 224,512 67,186 53,042 1,642 305,746 24,873 77,799 $
Fund Balances at June 30, 20I0 $ 222,901 $ 42,658 $ 137,649 $ 1,345 $ 310,786 $ 28,306 $ 73,263 $ 1,200
SCHEDULE 4
(30r5)
TOWN OF VERNON CONNECTlCJIT
Amerbelle Medical Education Parks and
Economic Mill Sidewalk Sewer Sewer Savings Post Recreation
Development Upgrades Development Assessment Connection Reserve Employment Programs
Revenues:
Intergovernmental:
Federal $ $ 179,007 $ $ $ $ $ $
State 174,477
Local
Assessments 64,462
Sales
Charges for services 647,169
Licenses and permits 131,955
Gifts and contnbutions 716,819
Investment income 316 9 784 3,1l7 427 686
Other 769
Total revenues 316 179,007 9 65,246 135,072 427 891,982 647,938
Expenditures:
Current
.....
General government
.....
V, Community development 179,007
Public safety
Maintenance and development 126,029 12,257
Human services
Parks, recreation and culture 544,956
Townwide
Education 891,296
Debt service
Capital outlay
Total expenditures 126,029 179,007 12,257 891,296 544,956
Excess (Deficiency) of Revenues
over Expenditures (125,713) 9 65,246 122,815 427 686 102,982
Transfers in 90,881
Transfers out (80,549) (36,095) (686) (71,400)
Net other financing sources (uses) 90,881 (80,549) (36,095) (686) (71,400)
Net Change in Fund Balances (34,832) 9 (15,303) 86,720 427 31,582
Fund Balances atJuly 1,2009 148,911 2,680 720,297 1,329,046 185,194 (35,077)
Fund Balances at June 30, 2010 $ 114,079 $ $ 2,689 $ 704,994 $ 1,415,766 $ 185,621 $ $ (3,495)
SCHEDULE 4
(4orS)
Special Revenue Fuuds Capital Projects Funds
WTP RiverSt.
Upgrade and Bridge SpringSt.
Town Talcottville Miscellaneous Expansion Renovation Renovations
Post Enhancemeuts Miscellaneous Special Ordinance Project Project
Employment TCSPOI0 Grants Revenue Total #199 146-160 146-159
Revenues:
Intergovernmental:
Federal $ $ 1,000 $ 158,809 $ $ 3,924,056 $ $ 651,964 $ 1,098,647
State 646,512 2,034,656 162,991 274,662
Local 1,197,012
Assessments 64,462
Sales 609,077
Charges for sClvices 3,199 1,750,954
Licenses and permits 18,770 178,160
Gifts and contnbutions 419,772 1,500 36,144 1,184,798
Investment income 131 12 279 8,088
Other 867 750 132,911 13,621 382,620 700
Total revenues 420,770 1,750 939,744 72,013 11,333,883 815,655 1,373,309
Expenditures:
Current
......
General government ll,020
......
0\ Community development 6,250 1,278,048
Public safety 14,098 12,250 968,856
Maintenance and development 549,857
Human services 168,045 14,352 193,757
Parks, recreation and culture 121,201 41,017 707,174
Townwide 420,639 644 526,597
Education 360,496 6,575,826
Debt service
Capital outlay 1,322 285,203 323,902 814,955 1,373,309
Total expenditures 420,639 1,322 955,937 67,619 ll,135,037 814,955 1,373,309
over Expenditures 131 428 (16,193) 4,394 198,846 700
Transfers in 270,400
Transfers out (131) (721) (4,000) (276,113)
Net other financing sources (uses) (131) (721) (4,000) (5,713)
Net Change in Fund Balances 428 (16,914) 394 193,133 700
Fund Balances atJuly 1, 2009 136,236 264,623 2,992,376 78,531 6,300 5,900
Fund Balances atJune 30, 2010 $ $ 428 $ 119322 $ 265017 5509 $ 78531 $ 7000 $ 5 00
SCHEDULE4
(50f5)
CHANGES IN FUND BALANCES (CONCLUDED)
Capital Projects Funds Permanent Fnnds
Town Edncation Total
Capital Capital Nonmajor
and and Cemetery Memorial Interlund Governmental
Nonrecurring Nonrecurring Total Trust Trust Total Eliminations Funds
Revenues:
Intergovernmental:
Federal $ 48,019 $ $ 1,798,630 $ $ $ $ $ 5,722,686
State 49,181 57,242 544,076 2,578,732
Local 1,197,012
Assessments 64,462
Sales 609,077
Charges for services 13,605 13,605 1,764,559
Licenses and permits 178,160
Gifts and contributions 10,250 10,250 1,195,048
Investment income 4,631 1,010 5,641 127,641 121 127,762 141,491
Other 10,205 10,905 393,525
Total revenues 125,641 58,252 2,372,857 137,891 121 138,012 13,844,752
Expenditures:
Current
.....
General government 11,020 .....
'1 Community development 1,278,048
Public safety 968,856
Maintenance and development 16,731 16,731 566,588
Human services 193,757
Parks, recreation and culture 707,174
Townwide 526,597
Education 6,575,826
Debt service 701,298 701,298 701,298
Capital outlay 962,975 322,326 3,473,565 3,797,467
Total expenditures 1,664,273 322,326 4,174,863 16,731 16,731 15,326,631
over Expenditures (1,538,632) (264,074) (1,802,006) 121,160 121 121,281 (1,481,879)
Transfers in 947,571 394,000 1,341,571 (14,536) 1,597,435
Transfers out (14,536) (14,536) 14,536 (276,113)
Net other financing sources (uses) 947,571 394,000 1,341,571 (14,536) (14,536) 1,321,322
Net Change in Fund Balances (591,061) 129,926 (460,435) 106,624 121 106,745 (160,557)
Fund Balances at July I, 2009 3,011,612 592,411 3,694,754 1,554,080 37,266 1,591,346 8,278,476
Fund Balances atJune 30,2010 $ 2420551 $ 7 $ 98091 $ $ 117919
(Concluded)
Internal Service
Funds
Internal Service funds are used to account for the providing of goods or services provided by one department to
other departments of the Town on a cost reimbursement basis or accounting for risk retention as allowed by
GASB Statement No. 10.
Data Processing - Provides data processing services, on a cost-reimbursement basis, to the Town's General
Fund.
Workers' Compensation - Accounts for the receipt of General and Sewer User Fund contributions to fund
general government, education and water pollution related incurred workers' compensation claims.
Contribution amounts are based on historical experience of claims incurred and paid.
Medical Self-Insurance Fund - Accounts for the cost of medical prescriptions for the Town's employees and
retirees. Established effective January 1, 2006, the fund is supported by employee and employer contributions.
Effective July 1, 2007, the Town became self-insured for the cost of dental for its general government
employees and retirees. Contribution amounts are based upon historical experience of claims incurred and
paid.
118
SCHEDULE 6
COMBINING STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET ASSETS
Data Workers' Medical
Processing Compensation Self-Insurance Total
Operating Revenues:
Charges for services $ 587,090 $ 385,000 $ 246,805 $ 1,218,895
Gifts and contributions 2,123,378 2,123,378
Other:
Insurance reimbursements 1,063 1,063
Miscellaneous 288 10,757 11,045
Total operating revenues 587,378 395,757 2,371,246 3,354,381
Operating Expenses:
Wages and benefits 308,236 308,236
Repairs, maintenance and rentals 165,841 165,841
Utilities 13,677 13,677
Supplies and materials 490 490
General and administrative 44,832 65,442 20,160 130,434
Claims paid and incurred 430,702 2,408,654 2,839,356
Depreciation 85,426 85,426
Total operating expenses 618,502 496,144 2,428,814 3,543,460
Operating Income (Loss) (31,124) (l00,387) (57,568) (l89,079)
Nonoperating Revenues (Expenses)
Investment income 59 198 605 862
Change in Net Assets (31,065) (100,189) (56,963) (l88,217)
Total Net Assets July 1, 2009 545,706 (965,732) 87,640 (332,386)
Total Net Assets June 30, 2010 $ 514,641 $ (1,065,921) $ 30,677 $ (520,603)
119
SCHEDULE 7
TOWN OF VERNON. coNNECTrqJT
COMBINING STATEMENT OF CASHFLOWS
Data Workers' Medical
Processing Compensation Self-Insurance Total
Cash Flows from Operating Activities:
Service charges collected $ 587,090 $ 385,000 $ 247,869 $ 1,219,959
Contributions collected 2,123,377 2,123,377
Other operating revenues collected 288 3,350 3,638
Cash payments for employee wages and benefits (296,891) (296,891)
Cash payments for goods and services (107,755) (107,755)
Cash payments for other operating expenses (446,827) (2,416,033) (2,862,860)
Cash receipts (disbursements) of advances (reimbursements) to other funds 96,000 96,000
Net cash provided by (used in) operating activities 182,732 (58,477) 51,213 175,468
Cash Flows from capital financing activities:
Purchase of capital assets (143,779) (143,779)
Cash Flows from Investing Activities:
Investment income 59 198 605 862
Net Increase (Decrease) in Cash and Cash Equivalents 39,012 (58,279) 51,818 32,551
Cash and Cash Equivalents - July 1, 2009 233,256 306,928 164,877 705,061
Cash and Cash Equivalents - June 30, 2010 272,268 248,649 216,695 737,612
Reconciliation to cash on Schedule 5:
Cash equivalents reported as investments (253,959) (231,214) (150,527) (635,700)
Cash and Cash Equivalents - June 30, 2010 $ 18,309 $ 17,435 $ 66,168 $ 101,912
Reconciliation of Operating Income (Loss) to Net Cash Provided by
(Used in) Operating Activities:
Operating income (loss) $ (31,124) $ (100,387) $ (57,568) $ (189,079)
Adjustments to reconcile operating income (loss) to net cash provided by
(used in) operating activities:
Add:
Depreciation expense 85,426 85,426
Increase in accounts payable 197,365 197,365
Increase in claims payable 44,797 12,781 57,578
Increase in accrued absences 6,410 6,410
Increase in due to other funds 21,143 96,000 117,143
Deduct:
Increase in due from other funds (12,260) (12,260)
Increase in prepaid expense (84,228) (84,228)
Decrease in accounts payable (2,887) (2,887)
Net adjustments to operating income (loss) 213,856 41,910 108,781 364,547
Net Cash Provided by (Used in) Operating Activities $ 182,732 $ (58,477) $ 51,213 $ 175,468
Schedule of noncash investing, capital and financing activities:
Data Processing Fund capital assets of $0 gross of accumulated depreciation of $0 were disposed of during the fiscal year.
120
Fiduciary
Funds
Fiduciary funds are used to account for assets held by the Town in a trustee capacity for individuals, private
organizations or other governments.
Pension Trust Funds
A fiduciary .fund type used to report resources that are required to be held in trust for the member and
beneficiaries of defmed benefit pension plans.
The Town has three pension plans covering substantially all of its employees, except teachers who are covered by
the State Teachers' Retirement Fund. The Town Plan is a contributory defmed benefit plan. The Police Plan is a
contributory defined benefit plan. The LOSAP Plan is a non-contributory defmed benefit plan for fire department
volunteers.
Private Purpose Trust Funds
To account for the activities of various restricted school awards.
Agency Funds
Agency funds are used to report resources held by the reporting government in a purely custodial capacity (assets
equal liabilitiesy.
School Activity
To account for expenditures for educational extracurricular activities at the various schools. Financing is
provided by individual fundraising projects.
Miscellaneous Activity
To account for activities of which include summer school, regional adult education and continuing education
programs.
Bid Bond Deposit
A fund to account for bid bonds which are held to assure performance by contracted vendors on projects for the
Town.
SCHEDULES
AGENCY FUNDS
COMBINING STATEMENT OF NET ASSETS
JUNE 30, 2010
Bid
School Miscellaneous Bond
Activity Activity Deposit Total
Assets:
Cash and cash equivalents $ 386,915 $ 85,737 $ $ 472,652
Investments 174,838 174,838
Total $ 386,915 $ 85,737 $ 174,838 $ 647,490
Liabilities:
Accounts payable $ 386,915 $ 85,737 $ 174,838 $ 647,490
121
SCHEDULE 9
TOwN OF VERNON. CONNECTICUT
AGENCY FUNDS
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
Balance Balance
July 1, 2009 Additions Deductions June 30, 2010
School Activity Fund
Assets:
Cash and cash equivalents $ 424,969 $ 731,051 $ 769,105 $ 386,915
Liabilities:
Miscellaneous Activity Fund
Assets:
Liabilities:
Bid Bond Depositors
Assets:
Investments $ 136,216 $ 38,622 $ $ 174,838
Liabilities:
Accounts payable $ 136,216 $ 38,622 $ $ 174,838
Total All Funds
Assets:
Investments 136,216 38,622 174,838
Total $ 619,866 $ 1,016,721 $ 989,097 $ 647,490
Liabilities:
Accounts payable $ 619,866 $ 1,016,721 $ 989,097 $ 647,490
122
Capital Assets
Used in the
Operation of
Governmental
Funds
The following schedules present only the capital assets balances related to the governmental funds. The assets are
reported at historical cost or estimated historical cost.
The Town's capitalization policy requires the recording of capital assets with original and estimated useful lives of
one year or more. Provisions for depreciation are not included in the schedules.
SCHEDULE 10
SCHEDULE BY FUNCTION AND ACTIVITY
JUNE 30, 2010
Land
and
Improvements
Construction
In Progress
Buildings
and
Improvements
Machinery,
Equipment
and Vehicles Infrastructure Total
General government $ 179,513 $ 269,924 $ 3,257,391 $ 450,906 $ $ 4,157,734
Community development 24,572 24,572
Public safety 343,716 42,590 4,170,318 7,184,915 11,741,539
......
N
"'"
Maintenance and development 527,455 22,319,432 853,353 5,570,010 51,756,817 81,027,067
Human services 50,546 50,546
Parks, recreation and culture 5,808,041 227,116 3,512,968 1,195,214 26,800 10,770,139
Townwide 1,353,722 11,521,920 19,092,609 31,968,251
Education 5,446,192 58,340,959 24,623,970 7,334,867 95,745,988
Total $ 13,658,639 $ 81,200,021 $ 47,939,920 $ 40,903,639 $ 51,783,617 $ 235,485,836
This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal service funds of $596,347 are
excluded from the above amounts. Generally, the capital assets of internal funds are included as governmental activities in the statement of net assets.
SCHEDULE 11
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY
Governmental Governmental
Funds Funds
Capital Assets Capital Assets
July 1, 2009 Additions Deletions June 30, 2010
General government $ 3,964,748 $ 192,986 $ $ 4,157,734
Community development 24,572 24,572
Public safety 11,626,334 325,460 210,255 11,741,539
Maintenance and development 76,715,692 4,405,647 94,272 81,027,067
Human services 50,546 50,546
Parks, recreation and culture 10,625,192 144,947 10,770,139
Townwide 32,371,046 340 403,135 31,968,251
Education 87,944,306 7,801,682 95,745,988
Total $ 223,322,436 $ 12,871,062 $ $707,662 $ 235,485,836
This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in internal
service funds of $596,347 are excluded from the above amounts. Generally, the capital assets of internal funds are included as
governmental activities in the statement of net assets.
124
Statistical
Section
This part of the Town's comprehensive annual fmancial report presents detailed information as a context for
understanding what the information in the fmancial statements, note disclosures, and required supplementary
information says about the Town's overall fmancial health.
CONTENTS
FINANCIAL TRENDS (TABLES 1 - 8)
These schedules contain trend information to help the reader understand how the Town's fmancial
performance and well-being have changed over time.
REVENUE CAPACITY (TABLES 9 -13)
These schedules contain information to help the reader assess the Town's most significant local
revenue source, the property tax.
DEBT CAPACITY (TABLES 14-18)
These schedules present information to help the reader assess the affordability of the Town's
current levels of outstanding debt and the Town's ability to issue additional debt in the future.
DEMOGRAPIDC AND ECONOMIC INFORMATION (TABLES 19 - 24)
These schedules offer demographic and economic indicators to help the reader understand the
environment within which the Town's fmancial activities take place.
OPERATING, INFORMATION (TABLES 25 - 28)
These schedules contain service and infrastructure data to help the reader understand how the
information in the Town's financial report relates to the services the Town provides and the
activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual
financial reports for the relevant year.
* Restated due to inclusion of infrastructure capital assets effective July 1, 2006.
** Restated to include inclusion ofcertain unreported capital assets effective July 1, 2007.
*** Restated due to reclassification ofPermanent Funds (Governmental Activities) to Private Purpose Funds (Fiduciary Funds), effective July 1,2008.
**** Restated due to allocation of Internal Service Fund net assets from Governmental Activities to Business-Type Activitie effective July 1,2009.
Note: Accounting standards require reporting ofnet assets into the following three components: Invested in capital assets, net of
related debt; Restricted; and Unrestricted. Net Assets are restricted when an external party places a restriction on how such
resources may be used.
Note: The reporting ofgovernment-wide statements did not commence until the effective date ofGASB 34 (Fiscal Year Ended June 30, 2003) and,
therefore, only eight years ofdata is reported.
TABLE 2
CHANGES IN NET ASSETS
(ACCRUAL BASIS OF ACCOUNTING)
LAST EIGHT FISCAL YEARS
(UNAUDITED)
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009 2010
Goverrunental Activities:
Expenses:
General government 2,780,651 2,796,272 $ 2,525,504 2,806,080 2,904,104 3,139,240 5,543,645 $ 6,002,872
Community development 276,390 427,475 418,771 430,016 335,054 512,822 874,382 1,631,589
Public safety 7,290,356 7,206,063 7,438,832 7,937,751 7,945,910 8,455,354 12,568,421 12,143,675
Maintenance and development 5,652,580 4,895,242 5,717,339 6,324,707 7,143,727 8,012,991 10,285,1-17 9,435,073
Human services 912,865 833,007 887,584 879,525 966,674 986,024 1,462,640 1,445,899
Parks, recreation and culture 1,453,466 1,474,924 1,585,830 1,728,770 1,983,538 2,051,661 2,332,424 2,487,532
Townwide 6,022,861 6,773,748 7,247,290 7,559,168 7,527,820 7,841,285
Education 46,166,977 48,239,843 49,179,415 52,628,976 53,358,397 67,481,122 58,265,100 56,255,521
Interest on long-term debt 1,235,357 802,777 628,621 743,513 1,314,382 1,998,887 2,098,304 2,055,746
Total goverrunental activities expenses 71,791,503 73,449,351 75,629,186 81,038,506 83,479,606 100,479,386 93,430,033 91,457,907
Program Revenues:
Cbarges for services:
General government 979,409 1,197,508 1,160,407 1,273,048 1,447,763 1,211,305 725,190 822,153
"-
Community development 8,952 142,815 33,937 19,906 58,142 30,034 7,489 13,956
~ Public safety 463,546 1,651,377 999,599 924,368 1,125,437 959,756 1,181,165 1,258,051
0-
Maintenance and development 492,408 387,948 672,068 565,980 714,631 657,618 561,824 564,608
Human services 1,761 7,333 20,873 13,475 20,075 19,018
Parks, recreation and culture 347,688 379,172 394,946 437,496 576,551 658,490 631,474 685,562
Townwide 465,743 570,272 523,029 564,362 526,665 168,062
Education 2,243,407 671,087 1,416,173 1,324,835 1,399,682 1,291,241 1,247,574 1,217,369
Operating grants and conmoutions 22,755,377 22,875,847 23,504,317 26,018,390 26,165,787 42,496,900 28,578,832 30,312,483
Capital grants and contributions 822,792 347,929 982,825 862,817 3,907,694 20,433,504 3,770,739 3,850,322
Total govenunental activities program revenues 28,581,083 28,231,288 29,708,174 32,004,677 35,942,427 67,925,928 36,704,287 38,724,504
Net Program Expense (43,210,420) (45,218,063) (45,921,012) (49,033,829) (47,537,179) (32,553,458) (56,725,746) (52,733,403)
General revenues:
Property taxes 40,239,986 42,427,689 43,801,916 46,693,784 48,110,529 49,934,064 51,722,860 54,100,377
Grants and contributions not restricted to specific programs 2,083,257 1,963,834 1,672,024 1,628,896 1,991,397 1,749,089 1,606,039 1,258,722
Unrestricted investment earnings 310,651 284,543 479,359 1,091,724 2,009,214 1,503,005 212,312 192,081
Miscellaneous 104,777 22,092 145,131 110,570 227,674 966,540 900,553
Transfers (36,095)
Total general revenues 42,633,894 44,780,843 45,975,391 49,559,535 52,221,710 53,413,832 54,507,751 56,415,638
Total Cbange in Net Assets (576,526) (437,220) 54,379 525,706 4,684,531 20,860,374 (2,217,995) 3,682,235
Net Assets July I 47,894,087 47,317,561 46,880,341 47,062,295 78,383,538 83,880,569 104,320,864
...
101,714,745
Net Assets June 30 47,317,561 46,880,341 $ 46,934,720 47,588,001 $ 83,068,069 $ 104,740,943 $ 102,102,869 105,396,980
(Continued)
TABLE 2
TOWNOF VERNON CONNECTICUT
CHANGES IN NET ASSETS
(ACCRUAL BASIS OF ACCOUNTING)
{UNAUDITED)
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009 2010
Business-Type Activities:
Expenses:
Sewer $ 4,384,038 $ 4,278,628 $ 4,420,476 4,792,603 $ 5,170,053 $ 5,356,677 5,709,836 5,488,272
Building rental 141,551 158,805 165,955 175,594 215,209 216,560 245,220 197,075
Total expenses 4,525,589 4,437,433 4,586,431 4,968,197 5,385,262 5,573,237 5,955,056 5,685,347
Revenues:
Charges for services:
Sewer use 3,893,581 3,349,787 4,153,087 4,635,373 4,633,831 5,250,919 5,658,586 6,025,610
Building rentals 137,650 102,294 145,398 145,398 138,441 160,610 168,218 169,800
Total revenues 4,031,231 3,452,081 4,298,485 4,780,771 4,772,272 5,411,529 5,826,804 6,195,410
Net Program Expenses (494,358) (985,352) (287,946) (187,426) (612,990) (161,708) (128,252) 510,063
--
General revenues:
t-..l Invesbnent income 51,260 32,546 82,719 153,339 187,249 133,132 38,771 9,879
'I
Grants and cnntributions not restricted to specific programs 75,000
Transfers 36,095
Total general revenues 51,260 32,546 82,719 153,339 187,249 133,132 113,771 45,974
Total Change in Net Assets (443,098) (952,806) (205,227) (34,087) (425,741) (28,576) (14,481) 556,037
Net Assets, July 1 9,832,155 9,389,057 8,436,251 8,231,024 14,978,908
**
14,553,167
..
14,524,591 14,898,234 ****
Net Assets, June 30, $ 9,389,057 8,436,251 8,231,024 $ 8,196,937 $ 14,553,167 $ 14,524,591 $ 14,510,110 15,454,271
Total
Total Change in Net Assets (1,019,624) (1,390,026) $ (150,848) 491,619 $ 4,258,790 20,831,798 $ (2,232,476) $ 4,238,272
Net Assets, July 1 (as restated) 57,726,242 56,706,618 55,316,592 55,293,319 93,362,446
*
98,433,736
..
118,845,455
...
116,612,979
Net Assets, June 30 $ 56,706,618 55,316,592 $ 55,165,744 $ 55,784,938 $ 97,621,236 $ 119,265,534 $ 116,612,979 $ 120,851,251
Note: Reporting ofgovernment-wide statements did not cnmmence until the effective date of GASB Statement No. 34 (Concluded)
*Net assets restated to rellect cumulative effect on GASS No. 47.
** Net assets restated to rellect cumulative effect ofGASB No. 34 infrastructure reporting.
*** Net assets restated to rellect certain unreported capital assets not being depreciated (land) as of June 30, 2007.
**** Net assts restated due to allocation ofInternal Service Fund net assets from Governmental Activities to Business-Type Activities.
TABLE 3
TOWN OF VERNON. CONNECTIqU
FUND BALANCES, GOVERNMENTAL FUNDS
(UNAUDITED)
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009 2010
General Fund:
Reserved $ 481,867 $ 1,017,823 $ 1,180,979 $ 1,026,658 $ 916,263 $ 1,595,231 $ 1,538,649 $ 1,833,779
Unreserved, reported in:
General Fund 5,127,713 6,093,957 6,963,701 7,985,020 8,224,232 7,930,610 8,367,020 8,592,950
Total General Fund $ 5,609,580 $ 7,111,780 $ 8,144,680 $ 9,011,678 $ 9,140,495 $ 9,525,841 $ 9,905,669 $ 10,426,729
All Other Governmental Funds:
Reserved $ 4,243,182 $ 4,281,153 $ 7,423,302 $ 16,664,678 $ 21,333,178 $ 23,038,929 * $ 15,339,913 $ 10,386,982
Special revenue funds 3,436,701 2,781,449 1,035,195 1,307,553 1,487,188 1,441,135 1,351,580 347,286
Capital projects funds (60,541) (60,541) (1,819,434) (15,704,605) (12,436,423) (4,770,711) (4,819,732) (6,645,708)
...... Total Fund Balance - All Other Governmental Funds $ 7,619,342 $ 7,002,061 $ 6,639,063 $ 2,267,626 $ 10,383,943 $ 19,709,353 * $ 11,871,761 $ 4,088,560
tv
00
Total Governmental Funds:
Reserved $ 4,725,049 $ 5,298,976 $ 8,604,281 $ 17,691,336 $ 22,249,441 $ 24,634,160 * $ 16,878,562 $ 12,220,761
General Fund 5,127,713 6,093,957 6,963,701 7,985,020 8,224,232 7,930,610 8,367,020 8,592,950
Special Revenue Funds 3,436,701 2,781,449 1,035,195 1,307,553 1,487,188 1,441,135 1,351,580 347,286
Capital Projects Funds (60,541) (60,541) (1,819,434) (15,704,605) (12,436,423) (4,770,711) (4,819,732) (6,645,708)
Total Fund Balances - Governmental Funds $ 13,228,922 $ 14,113,841 $ 14,783,743 $ 11,279,304 $ 19,524,438 $ 29,235,194 * $ 21,777,430 $ 14,515,289
* Restated to reclassify Permanent Funds (Governmental Fund) to Private Purpose (Fiduciary Fund).
NOTE: Prepared on the modified accrual basis ofaccounting.
NOTE: The reporting of Governmental Funds as required by GASB Statement No. 34 did not take effect until fiscal year ended June 30, 2003.
TABLE 4
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(UNAUDITED)
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009 2010
Revenues:
Property taxes $ 40,001,072 $ 42,462,509 $ 45,044,605 $ 46,735,710 $ 48,717,250 $ 49,913,095 $ 52,186,924 $ 54,241,727
Intergovernmental 25,777,713 24,708,867 25,423,568 27,641,354 31,251,370 62,806,494 33,236,536 34,675,196
Assessments 154,054 103,152 138,692 115,312 96,624 74,423 72,351 64,462
Charges for services 3,790,479 4,030,326 4,317,998 4,400,963 4,773,681 4,731,282 4,363,415 4,567,821
Gifts and contributions 983,081 1,270,019 1,377,668 1,349,523 1,262,616 1,593,576 1,454,208 1,552,800
Income on investments 288,914 272,439 454,327 1,035,366 1,944,825 1,456,284 203,468 192,081
Other 839,694 1,368,179 897,574 1,164,396 1,209,801 1,576,511 894,189 836,Q91
Total revenues 71,835,007 74,215,491 77,654,432 82,442,624 89,256,167 122,151,665 92,411,091 96,130,178
Expenditures:
General government 2,594,119 2,729,085 2,430,610 2,714,171 2,799,855 2,945,676 3,038,845 3,014,195
..... Community development 274,619 457,333 454,632 487,204 800,305 516,422 843,903 1,500,051
N
'0 Public safety 7,046,445 6,894,781 7,052,389 7,677,134 7,707,129 8,115,101 8,348,918 8,667,318
Maintenance and development 5,552,344 4,607,929 5,427,614 5,506,187 5,622,134 5,962,731 6,627,082 6,017,883
Human services 888,111 790,029 838,084 904,345 921,763 973,537 986,846 1,117,125
Parks, recreation and culture 1,335,020 1,366,730 1,470,046 1,551,687 1,736,475 1,829,696 1,954,648 2,045,589
Townwide 4,534,270 5,321,742 5,781,324 6,103,968 6,072,052 6,385,961 6,661,045 6,665,401
Education 44,977,166 46,833,327 48,380,355 51,805,003 52,542,394 67,288,015 55,172,073 55,878,652
Capital outlay 1,180,386 894,066 2,009,055 6,747,491 11,953,787 34,845,530 21,979,002 12,963,146
Debt service:
Principal 2,607,800 2,603,049 2,507,911 2,188,465 2,553,653 3,016,254 3,146,377 3,412,148
Interest 945,335 955,661 632,510 737,688 1,116,486 1,682,490 2,012,321 2,074,716
Total expenditures 71,935,615 73,453,732 76,984,530 86,423,343 93,826,033 133,561,413 110,771,060 103,356,224
Excess of Revenue Over (Under) Expenditures (100,608) 761,759 669,902 (4,095,469) (4,662,586) (11,409,748) (18,359,969) (7,226,046)
(Continued)
TOWN OF VERNON, CONNECIICUT
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
(UNAUDITED)
TABLE 4
FISCAL YEAR
2003 2004 2005 2006 2007 2008 2009 2010
Refunding bonds issued $ $ 5,210,000 $ $ $ $ $ $
Payment to refunding bond escrow agent (5,245,377)
Net original issue premium - refunding 158,537
Bond proceeds 12,815,000 21,040,000 10,875,000
BondlBAN premium and accrued interest 30,583 27,205
Lease purchase on equipment 301,739 476,280 470,000
Transfers in 2,978,845 2,966,626 1,991,619 1,927,419 4,169,759 2,731,259 2,130,198 3,143,579
Transfers out (2,978,845) (2,966,626) (1,991,619) (1,927,419) (4,169,759) (2,731,259) (2,130,198) (3,179,674)
Total other financing sources (uses) 301,739 123,160 476,280 12,815,000 21,540,583 10,902,205 (36,095)
Net Change in Fund Balances $ 201,131 $ 884,919 $ 669,902 $ (3,504,439) $ 8,245,134 $ 10,130,835 $ (7,457,764) $ (7,262,141)
.....
w
<::>
Debt Service as a Percentage of Noncapital
Expenditures 5.02% 4,90% 4.19% 3.67% 4.48% 4.74% 5.81% 6.06%
Debt Service as a PercentageofTotal Expenditures 4.94% 4.84% 4.08% 3.39% 3.91% 3.52% 4.66% 5.31%
(Concluded)
NOTE: Schedule prepared on the modified accrual basis ofaccounting.
NOTE: The reporting ofGovernmental Funds as required by GASB Statement No. 34 did not take effect until fiscal year ended June 30, 2003 and, therefore,
only eight years ofdata is reported.
TABLES
TOWN OF VERNON. CONNECfICUT
CHANGES IN NET ASSETS - PENSION TRUST FUND
LAST TEN FISCAL YEARS
(UNAUDITED)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Additions:
Contributions:
Employer $ 981,151 $ 1,165,424 $ 1,545,479 $ 1,996,518 $ 2,039,145 $ 2,210,536 $ 2,609,818 $ 2,796,299 2,941,678 $ 2,655,103
Employee 865,183 933,803 967,221 964,484 971,103 1,023,923 1,133,129 1,155,185 1,199,405 1,262,617
Net investment income (loss) (123,960) (755,903) (1,241,285) 3,961,658 2,582,283 1,865,254 3,384,945 2,207,027 (8,078,202) 5,604,908
Total Additions to Net Assets 1,722,374 1,343,324 1,271,415 6,922,660 5,592,531 5,099,713 7,127,892 6,158,511 (3,937,119) 9,522,628
Deductions:
Benefit payments/annuity purchases 1,301,602 1,325,695 1,469,615 1,802,770 2,017,309 2,146,399 2,523,452 2,740,940 3,017,123 3,269,875
Refunds ofcontributions 48,733 105,590 100,496 110,487 52,416 68,278 238,593 104,205 264,810 126,960
Administrative expense 119,287 112,224 112,699 117,044 128,962 136,388 145,491 145,588 156,405 140,276
.......
2,030,301 w Total Deductions to Net Assets 1,469,622 1,543,509 1,682,810 2,198,687 2,351,065 2,907,536 2,990,733 3,438,338 3,537,111
.......
Change in Plan Net Assets $ 252,752 $ (200,185) $ (411,395) $ 4,892,359 $ 3,393,844 $ 2,748,648 $ 4,220,356 $ 3,167,778 (7,375,457) $ 5,985,517
Employer Contributions as a Percentage of
Covered Payroll 6.62% 9.56% 9.98% 12.70% 12.40% 13.29% 15.29% 15.57% 15.85% 13.76%
Source: Town of Vernon, Finance Department
TABLE 6
GENERAL FUND - BALANCE SHEETS
(UNAUDITED)
FISCAL YEARS
2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Assets:
Cash $ 40,340 $ 697,928 $ 240,097 $ 323,970 $ 689,248 $ 737,153 $ 141,383 $ 228,825 $ 198,542 $ 306,803
Investments 10,443,021 10,364,088 10,350,750 10,287,126 7,091,252 8,364,683 8,430,528 5,236,288 5,958,795 6,416,888
Receivables:
Property taxes 1,281,734 1,373,298 1,329,106 1,305,826 1,437,171 1,450,857 1,900,645 2,001,643 2,062,150 2,034,797
Grants and other 891,434 966,108 1,433,194 1,820,165 2,338,640 2,677,397 3,132,749 3,843,696 492,453 522,063
Due from other funds 4,092,563 1,954,903 1,263,191 1,353,258 2,190,610 620,609 228,686 1,708,043 1,174,887 1,502,646
Total Assets $ 16,749,092 $ 15,356,325 $ 14,616,338 $ 15,090,345 $ 13,746,921 $ 13,850,699 $ 13,833,991 $ 13,018,495 $ 9,886,827 $ 10,783,197
Liabilities and Fund Equity
Liabilities:
Accounts payable $ 1,513,258 $ 1,817,271 $ 1,138,836 $ 927,733 $ 581,715 $ 750,925 $ 755,880 $ 635,070 $ 849,235 $ 843,302
.....
Accrued wages and
v., benefits 559,911 277,649 175,219 221,947 119,046 391,319 407,325 295,847 91,527 197,883
N
Due to other funds 2,464,181 1,209,431 1,258,402 1,886,412 467,977 473,653 591,456 457,845 457,845 1,048,759
Deferred revenue 1,785,013 2,146,305 2,518,040 2,913,758 3,566,505 4,090,122 4,967,550 6,020,153 2,635,266 2,552,001
Total liabilities 6,322,363 5,450,656 5,090,497 5,949,850 4,735,243 5,706,019 6,722,211 7,408,915 4,033,873 4,641,945
Fund Equity:
Reserved fur
encumbrances 1,833,779 1,538,649 1,595,231 916,263 1,026,658 1,180,979 1,017,823 481,867 404,435 697,994
Unreserved:
Designated for specific
purposes 322,000 322,000 322,000 322,000 322,000 322,000 100,000 100,000 100,000 100,000
Undesignaled 8,270,950 8,045,020 7,608,610 7,902,232 7,663,020 6,641,701 5,993,957 5,027,713 5,348,519 5,343,258
Total fund equity 10,426,729 9,905,669 9,525,841 9,140,495 9,011,678 8,144,680 7,111,780 5,609,580 5,852,954 6,141,252
Total Liabilities and
Fund Equity $ 16,749,092 $ 15,356,325 $ 14,616,338 $ 15,090,345 $ 13,746,921 $ 13,850,699 $ 13,833,991 $ 13,018,495 $ 9,886,827 $ 10,783,197
Source: Town ofVemon, Finance Department
TOWN OF VERNON CONNECTICIIT
GENERAL FUND
REVENUES BY SOURCE AND OTHER FINANCING SOURCES - GAAP BASIS
(UNAUDITED)
Revenues and Other
Revenues by Source Financing Sources
Fiscal Charges Licenses Gifts Fines On-Behalf Other
Year Ended Property for and and and Investment Payments Financing Annual %
June 30, Taxes Intergovernmental Services Permits Contributions Penalties Income and Other Sources Total Increase
2010 $ 54,241,727 $ 20,352,445 $ 1,561,369 $ 441,648 $ $ 13,008 $ 42,113 $ 3,963,079 $ 241,856 $ 80,857,245 1.6%
% of Total 68.2% 25.6% 2.0% 0.6% 0.0% 0.1% 5.0% 0.3% 100.0%
2009 52,186,924 21,194,696 1,421,907 406,025 10,088 199,312 3,906,222 259,876 79,585,050 (12.8%)
% of Total 65.6% 26.6% 1.8% 0.5% 0.0% 0.3% 4.9% 0.3% 100.0%
2008 49,913,095 20,870,957 2,223,776 497,149 18,515 670,210 16,859,883 223,892 91,277,477 20.7%
% of Total 54.7% 22.9% 2.4% 0.5% 0.0% 0.7% 18.5% 0.2% 100.0%
2007 48,717,250 19,559,484 2,279,748 478,589 19,711 871,920 3,416,995 250,827 75,594,524 3.7%
--
% ofTotal 64.4% 25.9% 3.0% 0.6% 0.1% 1.2% 4.5% 0.3% 100.0%
u..
u..
2006 46,735,710 19,252,033 2,072,163 407,494 16,273 627,897 3,522,395 228,715 72,862,680 6.6%
% of Total 64.1% 26.4% 2.9% 0.6% 0.0% 0.9% 4.8% 0.3% 100.0%
2005 45,044,605 18,538,035 1,880,649 468,028 1,704 26,598 300,156 1,907,981 195,115 68,362,871 2.3%
% ofTotal 65.9% 27.1% 2.8% 0.7% 0.0% 0.4% 2.8% 0.3% 100.0%
2004 42,462,509 18,493,182 1,851,104 468,199 11,959 138,292 2,408,603 1,003,288 66,837,136 4.6%
%ofTotal 63.5% 27.7% 2.8% 0.7% 0.0% 0.2% 3.6% 1.5% 100.0%
2003 40,001,072 19,136,104 1,660,198 376,427 270 10,428 148,450 1,832,984 724,792 63,890,725 2.5%
% ofTotal 62.6% 30.0% 2.6% 0.6% 0.0% 0.2% 2.9% 1.1% 100.0%
2002 37,512,127 20,121,878 1,587,220 406,027 10,559 10,910 317,948 1,992,818 399,830 62,359,317 3.1%
% ofTotal 60.2% 32.3% 2.5% 0.7% 0.0% 0.5% 3.2% 0.6% 100.0%
2001 35,562,024 20,184,903 1,252,905 307,417 15,278 775,737 2,016,559 398,511 60,513,334 2.7%
% of Total 58.8% 33.4% 2.0% 0.5% 0.0% 1.3% 3.3% 0.7% 100.0%
Note for 2008: On-behalf payments increased from $3,392,385 to $16,476,243 due to a one-time State ofConnecticut $2,000,000,000 contribution made to the Teachers' Retirement System.
Source: Town ofVemon, Finance Department
~
GENERAL FUND
EXPENDITURES BY FUNCTION AND OTHER FINANCING USES - GAAP BASIS
(UNAUDITED)
Expenditures and
Expenditures by Fnnction Other Financing Uses
Fiscal Maintenance Parks, Other
Year Ended General Commnnity Public and Hnman Recreation Capital Debt Financing Annnal %
Jnne30, Government Development Safety Development Services and Cnlture Townwide Edncation Ontlay Service Uses Total Increase
2010 $ 3,003,175 $ 222,003 $ 7,698,462 $ 5,451,295 $ 923,368 $ 1,338,415 $ 6,138,804 $ 49,302,826 $ 264,740 $ 3,091,374 $ 2,901,723 $ 80,336,185 1.4%
% of total 3.8% 0.3% 9.7% 6.9% 1.2% 1.7% 7.8% 62.2% 0.3% 3.9% 3.7% 100.0%
2009 3,026,387 217,126 7,381,590 5,681,841 899,092 1,305,429 6,167,528 49,284,455 117,423 3,254,029 1,870,322 79,205,222 -12.9%
% oftotal 3.8% 0.3% 9.3% 72% 1.1% 1.6% 7.8% 62.2% 0.1% 4.1% 2.4% 100.0%
2008 2,903,470 228,828 7,288,175 5,445,696 837,812 1,773,120 5,961,569 61,340,447 296,916 2,379,422 2,436,676 90,892,131 20,4%
% of total 3.2% 0.3% 8.0% 6,0% 0.9% 2.0% 6.6% 67.5% 0.3% 2.6% 2.7% 100.0%
2007 2,750,317 297,715 6,952,435 5,162,350 824,362 1,677,953 6,002,591 46,567,372 63,015 1,399,968 3,767,629 75,465,707 4.8%
% of total 3.6% 0.4% 9.2% 6.8% 1.1% 2.2% 8.0% 61.7% 0,1% 1.9% 5.0% 100.0%
.....
2006 2,656,684 387,792 6,854,826 5,022,273 856,084 1,531,572 5,966,312 45,669,360 261,775 1,090,300 1,698,704 71,995,682 6.9% w
-l>..
% ofTotal 3.7% 0.6% 9.5% 7.0% 1.2% 2.1% 8.3% 63.4% 0.4% 1.5% 2.5% 100.0%
2005 2,343,544 292,866 6,551,245 4,659,914 798,707 1,414,842 5,542,875 42,293,527 157,566 1,478,381 1,796,504 67,329,971 3.1%
% ofTotal 3,5% 0.5% 9.7% 6.9% 1.2% 2.1% 8.2% 62.8% 0.2% 2.2% 2.7% 100.0%
2004 2,650,579 132,012 6,189,419 4,220,216 745,105 1,330,795 5,100,827 41,079,425 149,710 1,773,510 1,963,338 65,334,936 1.9%
% ofTotal 4.1% 0.2% 9.5% 6.5% 1.1% 2.0% 7.8% 62.9% 0.2% 2.7% 3.0% 100.0%
2003 2,503,716 129,002 6,580,207 4,592,022 799,148 1,299,148 4,416,280 39,720,337 184,132 1,791,039 2,119,068 64,134,099 2.4%
% ofTotal 3.9% 0.2% 10.3% 7.2% 1.2% 2.0% 6.9% 61.9% 0.3% 2.8% 3.3% 100.0%
2002 2,162,152 172,845 6,495,267 3,958,466 739,573 1,278,913 3,887,193 39,536,662 531,262 1,825,308 2,059,974 62,647,615 2.9%
% ofTotal 3.5% 0.3% 10.4% 6.3% 1.2% 2.0% 6.2% 63.1% 0.8% 2.9% 3.3% 100.0%
2001 2,134,695 243,558 5,784,852 4,022,696 699,873 1,162,030 3,677,312 38,339,830 831,164 2,009,895 1,965,919 60,871,824 2.8%
% of Total 3.5% 0.4% 9.5% 6.6% 1.1% 1.9% 6.0% 63.0% 1.4% 3.3% 3.3% 100.0%
Note for 2008: On-behalfpayments increased from $3,392,385 to $16,476,243 due to a one-time State of Connecticut $2,000,000,000 contribution to the Teachers' Retirement System.
Source: Town of Vernon, Finance Department
TABLE 9
TAXABLE ASSESSED VALUE AND ESTIMATED ACTUAL VALUE OF TAXABLE PROPERTY
(In Tbonsands of Dollars)
(UNAUDITED)
(4)
Total Ratio of
Total Net Direct Estimated Assessed
Fiscal Grand Real Property ** Assessed Assessed Tax Actnal Valne to
Year List (I) Vacant! (3) (3) Valne of Less Value (Net Rate Value Estimated
Ended as of Commercial Use (2) Personal Motor All Less Pbasein Taxable (Mill All Actnal
June 30, lOll Residential Industrial Assessment Total Property Vehicles* Property Exemptions Adjustment Grand List) Rate) Property Value
2010 ' 2008 $ 1,254,850 $ 404,763 $ 12,089 $ 1,671,702 $ 77,115 $ 157,558 $ 1,906,375 $ 15,676 $ $ 1,890,699 28.42 $ 2,438,811 78.17%
2009" 2007 1,244,641 403,696 13,590 1,661,927 74,659 162,849 1,899,435 [4,587 [82,727 1,702,121 30.28 2,494,179 76.[5%
2008 " 2006 1,236,455 393,213 10,2[8 [,639,886 73,695 160,502 1,874,083 [7,804 365,000 1,491,279 32.9[ 2,021,544 92.71%
2007 2005 774,365 301,430 16,590 1,092,385 74,198 158,195 1,324,778 13,675 1,311,103 36.73 2,850,480 46.48%
2006 2004 760,656 294,457 23,491 1,078,604 71,476 148,805 [,298,885 13,896 1,284,989 35.79 2,600,045 49.96%
2005 2003 754,075 285,067 18,185 1,057,327 68,150 139,728 [,265,205 11,255 [,253,950 35.33 2,377,027 53.23%
......
""
2004 2002 745,786 283,750 17,002 [,046,538 66,929 144,468 1,257,935 13,481 [,244,454 33.54 2,210,936 56.90% v,
2003 2001 734,572 277,683 15,595 1,027,850 65,277 140,966 1,234,093 15,5[2 1,218,581 32.23 1,951,887 63.23%
2002 2000 727,051 272,806 16,587 1,016,444 68,880 137,267 1,222,591 16,442 1,206,149 30.75 1,740,564 70.24%
200[ 1999 706,977 270,002 4,298 981,277 65,176 131,360 1,177,813 [5,488 [,[62,325 30.11 1,607,411 73.27%
*Excludes assessed value on supplemental motor vehicle listings.
** Phase-in of Real Property revaluation - year 1 of 3 effective for fiscal year end June 30, 2008; year 2 of 3 effective for fiscal year end June 30, 2009; and year 3 of 3 effective for fiscal year end June 30, 2010.
(I) Iocludes public utility property.
(2) Tbe latest real estate revaluation was effective for the October [, 2008 Grand List Rea[ estate is assessed at 70% ofestimated full value.
(3) Tbe basis ofassessment is 70% of estimated full value for personal property and motor vehicles which are assessed annually.
(4) Tax rate is per $1,000 ofassessed value.
Source ofdata: Town Assessor's Office
TABLE 10
NET TAXABLE GRAND LIST AND PERCENTAGE CHANGE - BY TAXABLE PROPERTY
*Excludes assessed value on supplemental motor vehicle listings.
** Phase-in of Real Property revaluation - year I of 3 effective for fiscal year ended June 30, 2008, year 2 of 3 effective for fiscal year ended June 30, 2009 and year 3 of 3
effective for fiscal year ended June 30,2010.
Source of data: Town Assessor and Town Clerk Offices
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(UNAUDITED)
FISCAL YEAR
2010 2001
TABLE 11
Taxpayer
Taxable
Assessed
Value
(10/01/08
Grand List)*
%of
Taxable
Assessed
Value
Rank (Grand List)
Taxable
Assessed
Value
(10/01199
Grand List)* Rank
%of
Taxable
Assessed
Value
(Grand List)
Chapman and Mansions, LLC $ 47,215,610 2.50% $
Tri City Improvements, LLC 30,287,560 2 1.60% ,
Connecticut Water Company 21,235,040 3 I.l2% 15,877,060 1.37%
Evandro Santini & Woodbridge LLC 20,272,580 4 1.07% 13,920,800 2 1.20%
Connecticut Light & PowerNankee Gas Co. 17,211,260 5 0.91% 9,871,100 4 0.85%
CE Vernon II, LLC 15,571,120 6 0.82%
Chapman Acres. LLC 9,005,420 7 0.48% 5,615,910 10 0.48%
Boston Rockville / Boston Vernon 7,987,170 8 0.42%
Parkwest Residents Association 7,679,770 9 0.41%
Kerensky, Schneider...(Risley Trust) 6,842,300 10 0.36% 8,938,420 5 0.77%
Javit Asset Partnership 11,331,110 3 0.97%
Talcotville Development 7,260,800 6 0.00624679
Vernon Circle Acquisition Corp. 6,368,330 7 0.55%
Lee and Lamont 6,200,900 8 0.53%
Nina!Ark Realty Co., Inc. 6,055,740 9 0.52%
Total Top 10 Taxpayers $ 183,307,830 9.70% $ 91,440,170 7.87%
*Based on 10/1 Net Taxable Grand
List of: $ 1,890,699,101 $ 1,162,324,970
Source: Town ofVernon, Tax Assessor's Department
137
TABLE 12
TOWN OF VERNON. coNNEcrrcUT
PROPERTY TAX LEVIES AND COLLECTrONS
(UNAUDITED)
Current Levy Collected
Within the Fiscal Collections
Fiscal Current Year Levy Year of the Levy of Current Total Levy Collections to Date Uncollected
Year Grand Original Adjusted Percentage Levy Percentage Percentage Collectible
Ended List Current Adjustments Current of Original Subsequent of Original of Adjusted Taxes
June 30, Oct 1, Year Levy To Date Year Levy Amonnt Levy Years Amount Levy Levy June 30, 2010
2010 2008 $ 53,957,129 $ (47,536) $ 53,909,593 $ 53,268,067 98.7% $ $ 53,268,067 98.7% 98.8% $ 641,526
2009 2007 51,964,949 (165,371) 51,799,578 51,II4,202 98.4% 386,850 51,501,052 99.1% 99.4% 298,526
2008 2006 49,690,219 (138,193) 49,552,026 48,770,952 98.2% 658,055 49,429,007 99.5% 99.8% 123,019
2007 2005 48,761,915 (336,321) 48,425,594 47,704,186 97.8% 674,285 48,378,471 99.2% 99.9% 47,123
2006 2004 46,757,803 (376,434) 46,381,369 45,837,742 98.0% 523,133 46,360,875 99.2% 100.0% 20,494
....
w
00
2005 2003 45,007,299 (248,498) 44,758,801 44,228,933 98.3% 513,970 44,742,903 99.4% 100.0% 15,898
2004 2002 42,271,955 (2II,102) 42,060,853 41,586,384 98.4% 461,865 42,048,249 99.5% 100.0% 12,604
2003 2001 39,914,055 (349,305) 39,564,750 39,127,150 98.0% 425,748 39,552,898 99.1% 100.0% II,852
2002 2000 37,578,086 (290,777) 37,287,309 36,895,315 98.2% 380,686 37,276,001 992% 100.0% II,308
2001 1999 35,480,700 (271,800) 35,208,900 34,770,103 98.0% 421,2II 35,191,314 99.2% 100.0% 17,586
Note: The latest revaluation was effective for the year ended June 30, 2008. Property is taxed by the Town ofVernon only.
Source of Data: Town of Vernon, Tax Collector
Town ofVernon, Finance Department
TABLE 13
SEWER ASSESSMENTS BILLINGS AND COLLECTIONS
(UNAUDITED)
Current Current
Fiscal Year Assessment Assessment
Ended Receivable Assessment Assessment Receivable
June 30, July 1, Billings Collections June 30,
2010 $ 792 $ 59,201 $ 58,730 $ 1,263
2009 1,287 63,372 63,867 792
2008 718 62,227 61,658 1,287
2007 1,485 81,718 82,485 718
2006 12,074 87,074 97,663 1,485
2005 11,998 120,219 120,143 12,074
2004 12,109 80,428 80,539 11,998
2003 12,893 134,551 135,335 12,109
2002 29,032 117,272 133,411 12,893
2001 35,740 115,290 121,998 29,032
Source: Town of Vernon, Water Pollution Control Department
Town of Vernon, Finance Department
139
TABLE 14
TOWN OF VERNON CONNECTIC[[f
RATIO OF OUTSTANDINGDEBT BY TYPE
(UNAUDITED)
Governmental Aetivities Total Primary Estimated Total Debt Total Debt
Government Actaal Value asa % of Per asa%of Personal
Fiscal Year General Obligation Bonds of Property Estimated Capita Per Capita Income
Ended General Notes Leases Total (in thousands of $) Actual Value Population Total Debt Personal Personal asa %of
June 30, Purpose Scbool Sewer Total Payable Payable All Debt (2) of Property (3) Per Capita Income Income Total Debt
(I)
2010 $13,927,000 $29,300,000 $1,613,000 $44,840,000 $10,210,277 $188,094 $55,238,371 $ 2,438,811 2.26% 30,182 $ 1,830 $ n1a n1a n1a
2009 14,287,000 29,798,000 1,905,000 45,990,000 11,696,643 963,877 58,650,520 2,494,179 2.35% 29,839 1,966 44,430 4.42% 0.08%
2008 13,909,000 20,393,000 2,203,000 36,505,000 13,154,440 1,262,457 50,921,897 2,021,544 2.52% 29,620 1,719 41,736 4.12% 0.08%
2007 9,251,000 5,117,000 2,507,000 16,875,000 14,584,236 996,364 32,455,600 2,850,480 1.14% 29,672 1,094 38,697 2.83% 0.12%
2006 3,286,000 1,729,000 5,015,000 15,986,583 1,192,669 22,194,252 2,600,045 0.85% 29,491 753 36,674 2.05% 0.17%
2005 3,820,000 1,905,000 5,725,000 17,362,025 819,413 23,906,438 2,377,027 1.01% 29,338 815 35,138 2.32% 0.15%
......
-l>..
2004 4,584,000 2,201,000 6,785,000 18,711,094 918,256 26,414,350 2,210,936 1.19% 29,206 904 33,531 2.70% 0.13% 0
2003 5,398,000 2,542,000 7,940,000 20,034,312 1,013,087 28,987,399 1,951,887 1.49% 28,718 1,009 33,624 3.00% 0.12%
2002 6,232,000 2,893,000 9,125,000 21,332,190 802,330 31,259,520 1,740,564 1.80% 27,861 1,122 33,861 3.31% 0.11%
2001 7,066,000 3,344,000 10,410,000 22,605,230 33,015,230 1,607,411 2.05% 28,063 1,176 32,997 3.57% 0.10%
Source of data:
(1) Town ofVemon, Finance Department
(2) Estimated Actual Value ofProperty provided by State Office of Policy and Management and Town Assessor's Office.
(3) Population estimates are provided by the Connecticut Department ofPublic Health except for the Fiscal Year 2000/01 population estimate which was provided
by the U.S. Census Bureau.
n1a - Information not available at report issuance date.
TABLE 15
RATIO OF NET GENERAL BONDED DEBT OUTSTANDING
(UNAUDITED)
Other General Bonded Debt Net General Net
Total Less Funds Less Funds Bonded Debt General
General Provided Net Provided Net Total as a % of Bonded
Fiscal Year Obligation by Sewer General by Other Net General Estimated Debt
Ended Bonds Assessment Obligation Notes Surrounding Leases General Bonded Actual Value Per
June 30, (1) Fund Bonds Payable Municipalities Payable Bonded Debt Debt of Property (2) Capita (3)
2010 $ 44,840,000 $ $ 44,840,000 $ 10,210,277 $ (2,178,880) $ 188,094 $ 8,219,491 $ 53,059,491 2.18% $1,758
2009 45,990,000 45,990,000 11,696,643 (2,489,677) 963,877 10,170,843 56,160,843 2.25% 1,882
2008 36,505,000 36,505,000 13,154,440 (2,794,324) 1,262,457 11,622,573 48,127,573 2.38% 1,625
2007 16,875,000 16,875,000 14,584,236 (3,092,945) 996,364 12,487,655 29,362,655 1.03% 990
2006 5,015,000 5,015,000 15,986,583 (3,385,657) 1,192,669 13,793,595 18,808,595 0.72% 638
.....
"'"
5,725,000 5,725,000 17,362,025 (3,672,578) 819,413 14,508,860 20,233,860 0.85% 690
.....
2005
2004 6,785,000 6,785,000 18,711,094 (3,953,822) 918,256 15,675,528 22,460,528 1.02% 769
2003 7,940,000 7,940,000 20,034,312 (4,229,502) 1,013,087 16,817,897 24,757,897 1.27% 862
2002 9,125,000 9,125,000 21,332,190 (4,499,728) 802,330 17,634,792 26,759,792 1.54% 960
2001 10,410,000 (100,000) 10,310,000 22,605,230 (4,764,607) 17,840,623 28,150,623 1.75% 1,003
(1) See Table 14 for components of General Obligation Bonds.
(2) Estimated Actual Value of Property - See Table 9.
(3) Population - See Table 14.
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES FOR GENERAL DEBT TO GENERAL FUND EXPENDITURES - GAAP BASIS
General Fund expenditures
Debt service expenditures:
Principal
Interest
Total debt service
TABLE 16
Percentage of debt service
Expenditures to General Fund
expenditures 3.99% 4.21% 2.69% 1.95% 1.55% 2.26% 2.80% 2.89% 3.01% 3.41%
Source ofdata: Town ofVemon, Finance Department
SCHEDULE OF DEBT LIMITATION
JUNE 30, 2010
(UNAUDITED)
Base for Debit Limitation:
Total tax collections for the current fiscal year, including interest and lien fees
TABLE 17
$
General Urban Pension
Purpose Schools Sewers Renewal Deficit Total
Debt limitation:
2- I/4 times the Base for Debt
Limitation $ 122,035,995 $ $ $ $ $
4-1/2 times the Base for Debt
Limitation 244,071,990
3-314 times the Base for Debt
3- I14 times the Base for Debt
3 times the Base for Debt
7 times the Base for Debt
Total Debt Limitation 122,035,995 244,071,990 203,393,325 176,274,215 162,714,660 379,667,540
Indebtedness:
Bonds payable 13,927,000 29,300,000 1,613,000 44,840,000
Bond anticipation notes 740,000 2,970,000 3,710,000
Notes payable 10,210,277 10,210,277
Bonds authorized and unissued 3,392,000 36,642,000 162,000 40,196,000
Total Indebtedness 18,059,000 68,912,000 11,985,277 98,956,277
Less receivables:
School Building Grant (556,047) (556,047)
Sewer Assessments (57,900) (57,900)
Total Net Indebtedness 18,059,000 68,355,953 11,927,377 98,342,330
Debt Limitation in Excess of Net
Indebtedness Legal Debt Margin $ 103,976,995 $ 175,716,037 $ 191,465,948 $ 176,274,2I5 $ 162,714,660 $ 28 I,325,21 0
Schedule of Debt Limitation is prepared in accordance with the provisions of Connecticut General Statutes, Section 7-374(b).
The total net indebtedness above amounts to: $ 98,342,330
In no event sball total indebtedness exceed seven time the base for debt limitation computation: $ 379,667,540
There is no overlapping debt for the Town ofVemon.
Note: The Towns of Ellington, Manchester, South Windsor and Tolland allocable share of Sewer Total Indebtedness
(Clean Water Fund project 200-C) totals $2,178,880
143
TABLE 18
SCHEDULE OF LEGAL DEBT LIMITATION
(UNAUDITED)
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total Debt Limitation $ 248,429,083 $ 263,090,065 $ 280,194,243 $ 296,980,992 $ 315,210,483 $ 327,081,769 $ 340,763,451 $ 349,678,098 $ 365,563,961 $ 379,667,540
Total Net Indebtedness (29,637,592) (27,547,464) (25,641,702) (23,731,842) (21,845,748) (39,059,346) (102,886,032) (103,104,752) (100,700,857) (98,342,330)
Debt Limitation in Excess ofNet
Indebtedness(LegalDebtMargin) $ 218,791,491 $ 235,542,601 $ 254,552,541 $ 273,249,150 $ 293,364,735 $ 288,022,423 $ 237,877,419 $ 246,573,346 $ 264,863,104 $ 281,325,210
Total Net Indebtedness as a
Percentage of Debt Limitation
Source: Town of Vernon, Finance Department.
11.9% 10.5% 9.2% 8.0% 6.9% 11.9% 30.2% 29.5% 27.5% 25.9%
TABLE 19
TOWN OF VERNON. CT
DEMOGRAPHIC AND ECONOMIC DATA
(UNAUDITED)
Fiscal Personal Per Annual
Year Income* Capita Change in Unemployment Labor
Ended Median (in tbousands Personal School School Rate Force
Jnne30, Population Age* ofdoUars) Income* Enrollment Enrollment (June 30,) (June 30,)
2010 30,182 n1a n1a n1a 3,703 119 8.4% 17,894
2009 29,839 38.1 $6,660,847 $44,430 3,584 (131) 7.3% 17,673
2008 29,620 39.4 6,159,544 41,736 3,715 (82) 5.5% 17,842
2007 29,672 37.1 5,706,015 38,697 3,797 (163) 4.3% 17,496
2006 29,491 n1a 5,407,731 36,674 3,960 (90) 4.2% 17,241
.....
2005 29,338 n1a 5,157,225 35,138 4,050 (24) 4.9% 16,822
~
v,
2004 29,206 n1a 4,871,459 33,531 4,074 (4) 5.1% 16,752
2003 28,718 n1a 4,786,546 33,624 4,078 12 4.9% 16,925
2002 27,861 n1a 4,705,121 33,861 4,066 (70) 3.8% 16,330
2001 28,063 35.7 4,516,966 32,997 4,136 (18) 2.6% 16,419
* Tolland County, Connecticut ofwhich Vernon is included.
nJa - Not Available.
Sources of data:
Population estimates are provided by the Connecticut Department of Public Health, except
for the Fiscal Year 2000/0I, which was provided by the U.S. Census Bureau.
Personal Income and Per Capita Personal Income are identified for Tolland County,
Connecticut, ofwhich Vernon is a part of. This information is provided by the Bureau of
Economic Analysis, U.S. Department ofCommerce.
School Enrollment is provided by the Vernon Superintendent of Schools.
Unemployment and Labor Force data are provided by the State Department of Labor.
U,S. BUREAU of CENSUS STATISTICS
TABLE 20
Year
2000
1990
1980
1970
1960
1950
Population
(1)
28,063
29,841
27,974
27,237
16,961
10,115
June 30, 2010
(UNAUDITED)
Age Characteristics (1) Income Characteristics (1)
Density % 2000
(2) Age 1990 2000 Change Income Households % oftotal
1,509 Under 5 2,528 1,713 -32.2% $ Oto 9,999 658 5.4%
1,604 5-19 4,960 5,027 1.4% $10,000 to 14,999 697 5.7%
1,504 20-34 8,467 6,023 -28.9% $15,000 to 24,999 1,400 11.4%
'1,464 35-54 7,811 8,647 10.7% $25,000 to 34,999 1,520 12.4%
912 55-64 2,540 2,747 8.1% $35,000 to 49,999 2,098 17.1%
544 Over 65 3,535 3,906 10.5% $50,000 to 74,999 2,864 23.3%
$75,000 to 99,999 1,571 12.8%
Total 29,841 28,063 -6.0% $100,00 or more 1,482 12.1%
Median not available 37.7
Years of School Completed, Persons Age 25 and Over (1)
Total 12,290 100%
All Persons
1990
All Persons
2000 Income
1999
Households % oftota1
19,629 100%
Educational Attainment
Less than 9th grade
9th to 12th grade, no diploma
High school graduate
Some college, no degree & Associate degree
Bachelor, graduate or professional degree
Total
No.
1,482
2,298
5,921
5,113
5,119
19,933
%
7.5%
11.5%
29.7%
25.6%
25.7%
No.
917
1,865
5,934
5,660
5,253
%
4.8%
9.5%
30.2%
28.7%
26.8%
$ 0 to 9,999
$10,000 to 14,999
$15,000 to 24,999
$25,000 to 34,999
$35,000 to 49,999
$50,000 to 74,999
$75,000 to 99,999
$100,00 or more
1,057 8.8%
680 5.6%
1,588 132%
1,651 13.7%
2,674 22.2%
2,799 23.2%
1,041 8.6%
556 4.6%
Percent high school graduate or higher
Percent bachelor's degree or higher
Housing Occupancy
81.0%
25.7%
All Honsing Units
1990
85.8%
26.8%
All Housing Units
2000
Total 12,046
1990
100%
2000
100% 12,269
Owner Occupied Housing Units
Renter Occupied Housing Units
Total
Source of Data:
(1) U.S. Department ofCommerce, Bureau of Census.
(2) Population per square mile, based on an area of 18.6 square miles.
No.
6,996
5,141
12,137
% oftotal
57,6%
42.4%
No. % oftotal
6,935 56.5%
5,334 43.5%
100%
Median Income
Mean Income
Per Capita Income
% below poverty level
40,543
43,606
18,888
5.3%
47,816
57,533
25,150
5.8%
MAJOR EMPLOYERS
FISCAL YEARS ENDED JUNE 30, 2010 AND JUNE 30, 2001
(UNAUDITED)
TABLE 21
2010 2001
Percentage Percentage
of Total of Total
Number Town Number Town
Major Employer Employed Rank Employment Employed Rank Employment
Town of Vernon 835 I 4.7% 886 I 5.4%
Rockville General Hospital 559 2 3.1% 702 2 4.3%
Visiting Nurse and Health Services 458 3 2.6% 347 3 2.1%
Ticket Network 260 4 1.5%
Price Chopper 250 5 1.4%
State of Connecticut 227 6 1.3%
New England Mechanical Services 200 7 1.1% 241 5 1.5%
Stop & Shop 184 8 1.0% 248 4 1.5%
Fox Hill Nursing and Rehabilitation 180 9 1.0% 171 7
Vernon Manor 178 10 1.0% 153 9
Amerbelle Corporation 225 6 1.4%
Rein's Delicatessen 155 8 0.9%
Shaw's Supermarket 152 10 0.9%
Total 3,331 18.6% 3,280 20.0%
Source: Town of Vernon Economic Development Department.
Labor Force 17,894 16,419
147
* Includes municipal improvements, mobile homes, garages, pools, alterations, additions, stoves, sheds, fences etc.
** Excludes vacant land.
Sources: (I) Town of Vernon, Building Department
(2) Available on-line at www.fdic.gov/sod.
(3) State ofConnecticut Office ofPolicy and Management sales I assessment ratio studies.
(4) Town of Vernon, Assessor's Department
LAND USE STATISTICS
JUNE 30, 2010
Total Area Developed Undeveloped
# of %of # of %of # of %of
Category Acres Total Acres Total Acres Total
Residential 7,359 62.2% 4,627 39.1% 1,312 11.1%
Commercial 449 3.8% 357 3.0% 92 0.8%
Industrial 222 1.9% 193 1.6% 29 0.3%
Mixed Use 315 2.6% 85 0.7% 230 1.9%
All Other 3,495 29.5% 580 4.9% 2,915 24.6%
Total 11,840 100.0% 5,842 49.3% 4,578 38.7%
TABLE 23
Undevelopable
# of % of
Acres Total
1,420 12.0%
1,420 12.0%
Source: Town Planner Department
149
School
Elementary Schools:
Center Road
Lake Street
Maple Street
Northeast
Skinner Road
Total Elementary Schools
Middle School
Rockville High and VO-AG
Talcotville
Total All Schools
TABLE 24
SCHOOL FACILITIES AND ENROLLMENT DATA
JUNE 30, 2010
School
Total Enrollment
Number of Floor Area School as of
Grades Classrooms (Sq. ft,) Capacity 10/1/2009
Pre-K to 5 33 72,255 825 490
Pre-K to 5 20 38,320 525 314
Pre-K to 5 23 36,000 525 325
Pre-K to 5 19 40,469 525 281
Pre-K to 5 21 48,000 525 352
2,925 1,762
6 to 8 70 140,000 1,500 802
9 to 12 136 212,273 2,400 1,124
Special Ed 8 90 15
6,915 3,703
ACTUAL
SCHOOL ENROLLMENTS
ANNUAL
School Year * Pre-K K-5 6-8 9-12 UNGRADED TOTAL % CHANGE
2000/01 64 1,858 955 1,187 72 4,136 -0.43%
2001/02 58 1,780 945 1,229 54 4,066 -1.69%
2002/03 54 1,774 961 1,227 62 4,078 0.30%
2003/04 46 1,751 944 1,292 41 4,074 -0.10%
2004/05 40 1,710 939 1,314 47 4,050 -0.59%
2005/06 34 1,667 929 1,284 46 3,960 -2.22%
2006/07 26 1,656 851 1,244 20 3,797 -4.12%
2007/08 39 1,626 811 1,226 13 3,715 -2.16%
2008/09 33 1,588 781 1,166 16 3,584 -3.53%
2009110 124 1,638 802 1,124 15 3,703 3.32%
*As of October 1.
PROJECTED
SCHOOL ENROLLMENTS
2010/11 36 1,713 762 1,054 13 3,578 -3.38%
2011/12 36 1,711 776 1,002 13 3,538
-1.12% .
2012113 36 1,752 774 956 13 3,531 -0.20%
2013/14 36 1,769 748 992 13 3,558 0.76%
2014115 36 1,753 761 976 13 3,539 -0.53%
School Classrooms, Capacity and Actual Enrollments: Vernon Superintendent of Schools Office.
Projected Enrollments: State of Connecticut Department ofEducation.
150
'JABLE25
TOWN OF VERNON. CT
MUNICIPAL FULL-TIME EMPLOYMENT BY FUNCTION / PROGRAM
(UNAUDITED)
Full-time Employment Positions - Fiscal Year Ended June 30,
Function I
Program 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
General Government:
Administrative 8 8 8 7 8 8 7 6 6 6
Finance 14 13 14 14 14 14 14 14 14 14
Town Clerk 4 4 4 4 4 4 4 4 4 4
Data processing 4 4 4 3 3 3 3 3 3 3
Community Development:
Planning 2 2 2 2 2 2 2 2 2 3
Economic Development I 1 1 1 1 1 1 0 0 1
Public Safety:
Police 67 67 67 67 67 66 66 68 68 67
Fire I Ambulance 2 2 2 2 2 2 1 1 1 1
Building 5 5 5 6 5 5 5 5 5 5
..... Animal Control 2 2 2 2 2 2 2 2 2 2
u,
.....
Maintenance and development:
Public Works 51 51 51 51 48 48 48 48 47 47
Engineering 4 4 4 4 4 4 4 4 4 4
Water Pollution Control 23 24 24 24 24 24 24 23 23 23
Human Services:
Youth Services 3 3 3 3 3 3 3 3 2 2
Social Services 4 4 4 4 4 4 4 4 4 4
Senior Center 3 3 3 3 3 3 3 3 3 3
Administration 6 6 6 6 6 6 6 6 6 6
Parks Maintenance 6 6 6 6 6 6 6 6 6 6
Townwide:
Cemeteries 2 2 3 3 3 3 3 3 3 3
Subtotal Town Hall employees 211 211 213 212 209 208 206 205 203 204
Education 624 633 642 659 638 646 667 686 682 682
Total Full-Time Employees 835 844 855 871 847 854 873 891 885 886
Source: Vernon Human Resources Department and Vernon School Business Office.
TABLE 26
MUNICIPAL EMPLOYMENT, BY BARGAINING UNIT
JUNE 30, 2010
(UNAlJDITED)
Municipal Employment 2010 2009 2008 2007 2006 2005 2004
Board of Education 624 633 642 659 638 646 667
General Government 211 211 213 212 209 208 206
Total 835 844 855 871 847 854 873
Employees Current
Covered Contract
at Expiration
Board of Education Bargaining Unit 6/30/2010 Date
Clerical/Custodial/Maintenance Local 1303, AFSCME, AFL-CIO 65 6/30/13
Teachers Vernon Education Association 320 6/30/11
School Administrators Vernon School Administrators Association 22 6/30/12
School Nurses Vernon School Nurses' Association 9 6/30/10
Cafeteria United Food & Commercial Workers, 36 6/30/11
Local 919, AFL-CIO
Plant Operation Supervisors Local 818, Council #4, Supervisors 2 6/30/12
Service Aids & Teacher Assistants Vernon Federation ofParaprofessionals 142 6/30/11
Librarians / Media Managers / Assistants Local 1303-279, AFSCME, AFL-CIO 12 6/30/10
Non-Bargaining Employees Not affiliated 16 n/a
Total Board of Education 624
General Government Bargaining Unit
Police officers Local 17, Connecticut Independent Police
Union 50 6/30/11
Public Works/ Parks / Water Pollution Local1471, AFSCME, AFL-CIO 60 6/30/10
Public Works Supervisors Local 818, AFSCME, AFL-CIO 5 6/30/12
Civilian Police Department Employees Local 47, Connecticut Independent Laborers 14 6/30/11
Union
Professionals Local 818 Professionals, AFSCME, AFL-CIO 29 6/30/12
Public Works Administrative Clerical Local 1471, AFSCME, AFL-CIO 3 6/30/12
Waste Treatment Plant Supervisors Local 818, AFSCME, AFL-CIO 3 6/30/12
Non-Bargaining Employees Not affiliated 47 n/a
Total General Government 211
Source of data:
Board ofEducation, Director ofBusiness Office.
General Government, Town Administration.
152
TABLE 27
TOWN OF VERNON. CT
OPERATING INDICATORS BYFUNCTION! PROGRAM
(UNAUDITED)
FISCAL YEAR ENDED JUNE 30
FUNCTIONIPROGRAM 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001
Community Development
Planning Administration:
Number ofIn1and Wetland applications 12 13 13 24 31 17 5 nla nla nla
Number ofPlanninglZoning applications 29 20 27 38 42 32 30 nla nla nla
(both indicators based on calendar year)
Public Safety
Police:
Number ofcrimes 415 359 400 375 440 404 nla nla nla nla
Number of motor vehicle infractions 1,567 1,678 1,383 1,720 1,351 1,919 nla nla nla nla
Number ofcitations 6,674 5,823 6,917 9,002 6,382 8,158 nla nla nla nla
Number of service calls 18,872 20,956 20,379 20,754 19,104 19,958 nla nla nla nla
(all indicators based on calendar year)
Building Inspection:
Building permits issued 1,850 1,466 1,725 1,829 1,694 1,796 1,627 1,697 1,785 1,537
Building inspections conducted 6,343 2,886 2,073 1,817 1,731 1,401 nla nla nla nla
Maintenance and Development
General Maintenance:
Miles ofstreets paved! reconstructed 0.98 1.16 4.16 4.41 3.43 0.60 0.43 2.26 1.54 nla
Refuse Collection and Disposal:
Tons of Municipal Solid Waste collected 8,177.00 8,398.99 8,770.60 8,975.21 9,177.05 8,988.35 9,012.49 nla nla nla
Tons of Bulky Waste received 1,686.00 1,640.88 1,685.00 1,575.76 1,188.81 1,510.98 1,357.76 nla nla nla
Recycling:
Tons ofRecyclables collected 1,877.00 1,955.46 1,946.80 2,135.41 2,153.59 2,312.51 2,177.48 nla nla nla
Tons of Waste Motor Oil received 7.9 12.8 12.9 26.5 16.5 21.1 22.3 nla nla nla
Tons of Metal received 275.00 289.00 365.00 476.00 551.00 669.00 592.00 nla nla nla
Tons of Electronics received 21.00 20.30 5.00 nla nla nla nla nla nla nla
Units of Lead Acid Batteries received 165 290 256 nla nla nla nla nla nla nla
Parks and Recreation
Recreation programs:
Number of programs offered 89 65 82 75 68 60 57 62 52 nla
Number of summer camp participants 1,971 1,710 2,619 2,395 2,640 1,325 nla nla nla nla
Townwide
Vernon Cemeteries:
Number ofcemetery lots sold 54 88 48 69 51 94 63 138 76 51
Number ofburials ! cremations 70 97 80 75 87 95 70 105 78 80
Water Pollution Control Facility:
Average daily sewage treatment
(thousands of gallons) 3,240.0 3,890.0 3,760.0 4,140.0 4,094.4 3,791.4 4,794.7 3,215.7 3,493.0 3,693.3
Source of data: Various town departments.
Note: No operating indicators are available/presented for general government, human services or education functions.
nla =Information is not available or the information is not readily available at this time or the database for depicted years differs significantly from less recent years.
153
TABLE 28
TOWN OF VERNON. CT
CAPITAL ASSET STATISTICS BY FUNCTION / PROGRAM
(UNAUDITED)
FISCAL YEAR ENDED JUNE 30
FUNCTIONIPROGRAM 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Public Safety:
Number ofpolice stations I 1 1 1 1 1 1 I 1 1 1
Number ofpolice officers 50 50 50 50 50 50 50 50 50 49 49
Number of fire / ambulance stations 6 6 6 6 6 5 5 5 5 5 5
Number of fire / ambulance volunteers 161 154 135 138 123 132 130 138 150 123 116
Maintenance and Development:
Miles of improved roads 1l2,4 111.83 1ll.81 1l1.81 1l1.81 111.08 1l1.02 1ll.02 1ll.08 109.95 109.95
Miles of unimproved roads 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05 0.05
Miles of sanitary sewers 112 112 112 112 112 112 112 87.88 87.88 87.88 87.44
....... Number of sanitary sewer pump stations 7 7 7 7 7 7 7 7 7 7 7
v,
~ Treatment capacity - million gallons/day 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1 7.1
Number ofparks 23 22 22 22 22 22 22 22 22 23 17
Acres of park land 570.42 568.3 568.3 568.3 568.3 568.3 568.3 568.3 568.3 568.7 506.8
Number of pools 2 2 2 2 2 2 2 2 2 2 2
Number of beaches 2 2 2 2 2 2 2 2 2 2 2
Education:
Number of schools:
Elementary 5 5 5 5 5 5 5 5 5 5 5
Middle 1 1 I 1 1 I 1 I 1 1 1
High/VOAG 1 1 I 1 1 1 1 1 1 1 1
Special Education I 1 I I 1 1 1 1 1 1 1
Townwide:
Number of cemeteries maintained 5 5 5 5 5 5 5 5 5 4 4
Source of data: Various town departments.
Note: No capital asset indicators are available for general government, cornmunity development or human services functions.

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