HomeMy WebLinkAboutTown of Tarboro - Public Financial Report TOWN OF TARBORO, NORTH CAROLINA
ANNUAL COMPREHENSI�E
FINANCIAL REPORT
���
j i `
♦ �
, �
.
EST. � 7�50
��r
���
��� ♦
� �
� r �
FOR FISCAL YEAR
ENDING JUNE 30, 2022
TOWN OF TARBORO, NORTH CAROLINA
ANNUAL COMPREHENSIVE
FINANCIAL REPORT
For the Fiscal Year Ended
June 30, 2022
Prepared by:
Anne Y. Mann
Finance Director
Member of the Government Finance Officers Association of the United States and Canada
TABLE OF CONTENTS
INTRODUCTORY SECTION Pa�e
Letter of Transmittal 1
Certificate of Achievement for Excellence in Financial Reporting 6
Organizational Chart-All Departments 7
List of Principal Officials 8
FINANCIAL SECTION Pa�e
Independent Auditor's Report 9 - 11
Management's Discussion and Analysis 12 -22
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 23 -24
Statement of Activities 25 -26
Fund Financial Statements:
Balance Sheet—Governmental Funds 27 -28
Statement of Revenues, Expenditures, and Changes in
Fund Balances—Governmental Funds 29 - 30
Statement of Revenues, Expenditures, and Changes in
Fund Balance-Budget and Actual- General Fund 31
Statement of Net Position—Proprietary Funds 32
Statement of Revenues, Expenses, and Changes in
Net Position—Proprietary Funds 33
Statement of Cash Flows—Proprietary Funds 34 - 35
Notes to Financial Statements 36 - 66
Pa�e
Required Supplemental Financial Data:
Law Enforcement Officers' Special Separation Allowance:
Schedule of the Changes in Total Pension Liability 67
Schedule of Total Pension Liability as a Percentage of Covered Payroll 68
Local Government Employees' Retirement System:
Schedule of the Proportionate Share of Net Pension Liability(Asset) 69
Schedule of Contributions 70
Other Post-Employment Benefits:
Schedule of Changes in Total OPEB Liability and Related Ratios 71
Major Governmental Funds:
Schedule of Revenues,Expenditures, and Changes in
Fund Balance -Budget and Actual-General Fund 72 - 75
Schedule of Revenues, Expenditures, and Changes in
Fund Balance -Budget and Actual—ARP Fund 76
Non-Major Governmental Funds:
Combining Balance Sheet-Non-major Governmental Funds 77
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balance -Non-Major Governmental Funds 78
Non-Major Special Revenue Funds:
Schedule of Revenues,Expenditures, and Changes in Fund
Balance -Budget and Actual-Emergency Telephone System Fund 79
Schedule of Revenues, Expenditures, and Changes in Fund
Balance -Budget and Actual-Law Enforcement Fund 80
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—Employee Relief Fund 81
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—Disaster Relief Fund 82
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—Disaster Recovery Project Fund 83
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—Essential Single-Family Rehabilitation Loan Pool Fund 84
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—NC DOT CMAQ Project Fund 85
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—Parks and Recreation Trust Fund Grant Fund 86
Schedule of Revenues, Expenditures, and Changes in Fund
Balance—Budget and Actual—Grant Project Fund 87
Pa�e
Enterprise Funds:
Schedule of Revenues and Expenditures -Budget and Actual -
(Non-GAAP) - Electric Fund 88 - 89
Schedule of Revenues and Expenditures -Budget and Actual -
(Non-GAAP) -Water and Sewer Fund 90 -91
Schedule of Revenues and Expenditures -Budget and Actual-
(Non-GAAP) - Solid Waste Fund 92
Schedule of Revenues and Expenditures -Budget and Actual-
(Non-GAAP) - Stornwater Fund 93
Other Supplemental Schedules:
Schedule of Ad Valorem Taxes Receivable 94
Analysis of Current Tax Levy 95
STATISTICAL SECTION (Unaudited) Pa�e
Net Position by Components 96
Changes in Net Position 97 - 98
Governmental Activities Tax Revenues by Source 99
Fund Balances of Governmental Funds 100
Changes in Fund Balances- Governmental Funds 101
General Governmental Tax Revenues by Source 102
Assessed Value of Property 103
Property Tax Rates -Direct and Overlapping 104
Principal Property Taxpayers 105
Property Tax Levies and Collections 106
Ratios of Outstanding Debt by Type 107
Legal Debt Margin Information 108
Demographic Statistics 109
Principal Employers 110
Full-time Equivalent City Government Employees by Function 111
Operating Indicators by Function 112
Capital Asset Statistics by Function 113
COMPLIANCE SECTION Pa�e
Report on Internal Control Over Financial Reporting And On Compliance
and Other Matters Based on an Audit of Financial Statements Performed In
Accordance with Government Auditing Standards 114- 115
Report on Compliance for Each Major Federal Program; Report on Internal
Control Over Compliance; With OMB Uniform Guidance and the State
Single Audit Implementation Act ll 6- 118
Schedule of Findings and Responses 119 - 120
Corrective Action Plan 120
Summary Schedule of Prior Year Findings 120
Schedule of Expenditures of Federal and State Awards 121
INTRODUCTORY SECTION
Town of Tarboro
500 N Main Street, PO Box 220,Tarboro, NC 27886 (P)252.641.4200 (F)252.641.4286
December 21, 2022
To the Honorable Mayor, Town Council, and Town Manager:
State law requires that all general-purpose local governments annually publish a complete set of financial
statements presented in conformity with generally accepted accounting principles (GAAP) and audited in
accordance with generally accepted auditing standards by a firm of licensed certified public accountants.
Pursuant to that requirement,we hereby issue the Annual Comprehensive Financial Report of the Town of
Tarboro for the fiscal year ended June 30,2022.
This report consists of management's representations concerning the finances of the Town of Tarboro.
Consequently, management assumes full responsibility for the completeness and reliability of all of the
information presented in this report. To provide a reasonable basis for making these representations,
management of the Town of Tarboro has established a comprehensive internal control framework that is
designed to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable
information for the preparation of the Town of Tarboro's financial statements in conformity with GAAP.
Because the cost of internal controls should not outweigh their benefits, the Town of Tarboro's
comprehensive framework of internal controls has been designed to provide reasonable rather than absolute
assurance that the financial statements will be free from material misstatement. As management we assert
that, to the best of our knowledge and belief, this financial report is complete and reliable in all material
respects.
The Town of Tarboro's financial statements have been audited by Joyce and Company, CPA, 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 of Tarboro for the fiscal year ended June 30, 2022, are free of
material misstatement. 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 presentation. The
independent auditor concluded, based on the audit, that there was a reasonable basis for rendering an
unmodified opinion that the Town of Tarboro's financial statements for the fiscal year ended June 30,2022,
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.
1
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. These reports are available in the Compliance section of this report.
GAAP requires that management provide a narrative introduction,overview and analysis to accompany the
financial statements in the form of Management's Discussion and Analysis (MD&A). The letter of
transmittal is designed to complement the MD&A and should be read in conjunction with it. The Town of
Tarboro's MD&A can be found immediately following the report of the independent auditors.
Profile of the Government
The Town of Tarboro is located along the Tar River in the northeast part of North Carolina. It is the county
seat of Edgecombe County. The Town was incorporated in 1760 and has a population of approximately
10,575. The Town of Tarboro takes pride in its Town Common, expansive Historic District, wide array of
recreational activities,the revitalization of Main Street, and its many historic landmarks.
The Town operates under a Council/Manager form of government. The legislative body of the government
of the Town is comprised of a Mayar and an eight-member Town Council. The Mayor is elected at-large
on a non-partisan basis for a four-year term. The eight Council members are elected from wards on a non-
partisan basis to four-year staggered terms. The governing body is responsible for, among other things,
passing ordinances, adopting the budget, appointing committees, and hiring the Town Manager. The Town
Manager is responsible for carrying out the day-to-day operations of the Town and for appointing the heads
of departments. A team of seven department heads assists the manager in operating the Town.
The Town operates electric,water and sewer, and storm water utilities, providing service to approximately
6,500 households and businesses within the Town and the surrounding area. We also provide a full range
of municipal services, including police and fire protection, sanitation, street construction and maintenance,
planning and zoning, building inspection, parks and recreation and recreational activities.
2
Budgetary Control
The annual budget serves as the foundation for the Town of Tarboro's financial planning and control. The
Town has a formal operating budget process which begins in February each year with the Council Retreat
and ends in May when the Town Council receives the recommended budget.The council is required to hold
public hearings on the proposed budget and to adopt a final budget no later than June 30, the close of the
Town's fiscal year. Legal budgetary control for operating budgets is exercised at the fund and department
level. The Town Manager may make transfers of appropriations within a fund. Transfers of appropriations
between funds, however, require the approval of the Town Council. Formal budgetary integration and
encumbrance accounting are employed as management control devices during the year. Budget to actual
comparisons are provided in this report for each individual governmental fund and proprietary funds for
which an appropriated annual budget has been adopted.
Local Economy
The Town of Tarboro continues to have a positive outlook despite the global pandemic and current national
economic trends. Tarboro has seen continual, consistent progress on projects within our jurisdiction over
the past few years, and this trend is anticipated to progress.
Together in partnership with Carolina Gateway Partnership, the Tarboro Edgecombe Chamber of
Commerce, and the Edgecombe Community College Small Business Center alongside the Town's
individual efforts, we have strengthened our business relationships within the community while also
recruiting new business. The Town has worked extensively with Electricities to create a Key Accounts
program that brings our staff together at regular intervals with our largest Electric Utility customers to
bolster connections and strengthen partnerships. It is through relationships such as these that several local
industries have recently chosen to expand operations and build additions.
Commercial business has expanded near the Highway 64 exit with the current construction of several well-
known operations which will bring customers from both passing highway traffic as well as our retail trade
area ofover fifty-thousand residents within our surrounding rural area. These include Cookout,Tidal Wave
Auto Salon, Main Street Family Urgent Care, Starbucks, and the recently completed Tractor Supply
Company.
In following our Economic Development Strategic Five-Year Plan created in partnership with the North
Carolina Department of Commerce, our Economic Vitality Board works directly with staff to determine
downtown investment needs, incentives,and policies. Our powntown Investment Showcase held this past
fall has already generated the sale of several buildings which will be renovated for new businesses. Through
the utilization of the Environmental Protection Agency Brownfields Grant, we have begun to analyze the
riverfront as a local and tourist destination,and anticipate downtown revitalizations which will draw further
3
investment and thus sales tax revenue. These plans include a need for downtown housing which will
complement the over two-hundred new construction houses which have been built since 2020 in other
sections of town. The Residential Incentive Policy has been utilized to construct a new subdivision, which
is nearing completion,where many of the homes have already been purchased.
The further development of local industry, commercial trade, and locally-owned businesses is a benefit to
our citizens as employees,residents,and taxpayers. These expansions further our Town's goals of providing
the highest standards in health, safety, and welfare of our citizens.
Financial Analysis of the Town
The Town is committed to budget and to expend available resources in a manner that will continue the
improvement of the Town's fiscal condition and protecting and building reserves for future operating and
capital needs.
The Town's annual operating budget balances projected revenues from taxes, fees and other sources of
expenditures reflecting ongoing operations, strategic initiatives and other important investments. Town
Council's established goals and objectives serve as the guide in decision making, along with the Town's
shared values of excellent public service, excellent customer service, and innovation. Fiscal year 2023
focuses available resources on balancing the budget for existing services and projects,continued protection
of the Town's fiscal condition, to ensure effective delivery of essential services, and continued planning
and implementation of strategic initiative and investments designed to improve quality of life and economic
development opportunities for all residents. The budget also provides for effectively maintaining and
improving public infrastructure, including roadways, utility systems and public facilities and enabling
implementation of recent planning activities.
General Fund:
For over ten years,the economy has been a major concern for the Town of Tarboro. The global pandemic
and national economic outlook have only heightened those concerns. Despite this, during fiscal year 2022,
the Town again saw an increase in General Fund revenues from sales taxes and other intergovernmental
sources when compared to the priar year. This continued growth has helped to maintain personnel and
operating costs without requiring property tax increases. Personnel and benefits are one of the largest
operational costs to the Town. The budget for the fiscal year included a pay plan adjustment of three
percent, as well as changes to the Classification and Pay Plan to bring salaries of Town staff up to
competitive levels with comparable cities.
Enterprise Fund:
Rates for the electric, water and sewer, and storm water utilities all remained unchanged from the prior
fiscal year. The Solid Waste Management fee however did increase to $24.50 per month for residential
4
service. Town staff is continuing the implementation and installation of an Advanced Metering
Infrastructure (AMI) system, a project with completion expected in 2023. This system provides functions
that were not previously possible or had to be performed manually and is expected to create financial gain
by reducing equipment and maintenance costs and enabling faster water leak detections and restoration of
electric service during outages.
Awards and Acknowledgements
Certificate of Achievement for Excellence in Financial Reporting Program - 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 Tarboro for its annual comprehensive financial report for
the fiscal year ended June 30, 2020. This was the thirty-first consecutive year that the Town has achieved
this prestigious award. In order to be awarded a Certificate of Achievement, a government must publish an
easily readable and efficiently organized annual comprehensive financial report. This report must satisfy
both generally accepted accounting principles(GAAP) and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only.While still being reviewed by the GFOA
as of the date of this letter, we believe that the report for June 30, 2021, as well as our current annual
comprehensive financial report continue to meet the Certificate of Achievement Program's requirements.
As such we expect certificates for each of these years.
Acknowledgments—The preparation of this report would not have been possible without the efficient and
dedicated service of the entire staff of the finance department. I would like to express my appreciation to
all members of the department who assisted and contributed to the preparation of this report. Credit also
must be given to the Mayor,Town Council,and Town Manager for their continuing support for maintaining
the highest standards of professionalism in the management of the Town of Tarboro.
Respectfully submitted,
"l��_.
Anne Y. Ma
Finance Director
5
�
Government Finance Officers Association
Certi�cate of
Achievement
for Excellence
in Financial
Reporting
Presented to
Town of Tarboro
North Carolina
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
�.?���,. P� �u�:u
Executive Director/CEO
6
Organizational Chart
Citizens oi the Town ot
Tarboro,North Carolina
Mayor end
Town Council
Town
Manager
Finance Electric Utilities Planning Public Works
Director Director Director Director
Accounting Electric System Building Engineering Bldg 8 Grounds
Manager Superintendent Inspector Supervisor Supervisor
Collector oi Electric Support Streets Weter Treatment
Revenue Supervisor Supervisor Plant Supervisor
Wastewater Water&Sewer
Treatment
Plant Su ervisor Services
Equipment
Services Supervisor
Fire Police Parks 8 Rec.
Chief ChieT Director
Fire Captains(3) Administrative Office Senior Center
Captein Assistant Supervisor
Uniform PaVol Maintenance Braswell
Captain Speciaiist Center 8 Park
Su ervisor
Indian Lake Ray Center 8
Complex Mgr Clark Paric
SU BNISOf
7
Principal Officials
ELECTED OFFICIALS
Total Length Term
Title Name of Service Expires 1
Mayor Bryan T Mayo, Jr 3 Years December, 2025
Councilman Ward 1 Othar Woodard 9 Years December, 2025
Councilman Ward 2 Leo Taylor 7 Years December, 2023
Councilman Ward 3 Stephen Burnette 9 Years December, 2025
Councilman Ward 4 C B Brown 7 Years December, 2023
Councilman Ward 5 John Jenkins 21 Years December, 2025
Councilman Ward 6 Deborah Jordan 11 Years December, 2023
Councilman Ward 7 Sabrina Bynum 6 Years December, 2025
Councilman Ward 8 Alfred Braxton 1 Year December, 2023
1 The Mayor serves a four-year term. Councilmen serve four-year staggered terms.
APPOINTED OFFICIALS
Length of Length of
Time In Employment With The
Title Name This Position Town of Tarboro
Town Manager Troy Lewis 6 Years 22 Years
Finance Director Anne Y Mann 8 Years 8 Years
Police Chief Jesse Webb 6 Years 28 Years
Public Works Director Michael J Nichols 3 Years 22 Years
Electric Utilities Director Charles Dickson 1 Years 15 Years
Fire Chief Lee R Bell 3 Years 20 Years
Recreation Director Travis Stigge 8 Years 8 Years
Planning Director Catherine Grimm 7 Years 7 Years
s
FINANCIAL SECTION
;I- JOyCe and
Company,
CPA
Certified Public Accountants
104 Brady Court,Cary,North Carolina 275 l 1
Phone 919-466-0946 Fax 919-466-0947
Iodepeodent Auditor's Report
To the Honorable Mayor and
Members of the Town Council
Town of Tarboro,North Carolina
Report on the Audit of Financial Statements
Opinions
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 Tarboro,North
Carolina, as of and for the year ended June 30, 2022, and the related notes to the financial statements,which
collectively comprise the Town's basic financial statements as listed in the table of contents.
In our opinion, the accompanying financial statements referred to above present fairly, in all material respects,
the respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the Town of Tarboro as of June 30, 2022, and the respective
changes in financial position, and cash flows where applicable thereof and the respective budgetary
comparison for the General Fund and major, annually budgeted special revenue funds, for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America(GAAS)and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards
are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the Town of Tarboro and to meet our other ethical
responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the
audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Audit of the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and for the design, implementation, and maintenance of internal control relevant to
the preparation and fair presentation of financial statements that are free from material misstatement,whether
due to fraud or error.
In preparing the financial statements,management is required to evaluate whether there are conditions or
events, considered in the aggregate,that raises substantial doubt about the Town of Tarboro's ability to
continue as a going concern for the twelve months beyond the financial statement date, including any
currently known information that may raise substantial doubt shortly thereafter.
9
Members:American Institute of Certified Public Accountants•North Carolina Association of Certified Public Accountants
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
of material misstatement,whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS and Governmental Auditing Standards, will
always detect material misstatement when it exists. The risk of not detecting material misstatement resulting
from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intentional
omissions,misrepresentations, or the override of internal control. Misstatements are considered material, if
there is a substantial likelihood that, individually or in the aggregate,they would influence the judgment made
by a reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Governmental Auditing Standards we
• exercised professional judgement and maintained professional skepticism throughout the audit.
• identify and assess the risks of material misstatement of the financial statements,whether due to
fraud or error,and design and perform audit procedures responsible to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances,but not for the purpose of expressing an opinion on the
effectiveness of the Town of Tarboro's internal control. Accordingly, no such opinion is expressed.
• evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management,as well as evaluate the overall presentation of the
financial statements.
• conclude whether, in our judgement,there are conditions or events,considered in the aggregate,that
raise substantial doubt about the Town of Tarboro's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those charged with governance regarding among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis on pages 12 through 22,the Law Enforcement Officers' Special Separation
Allowance's Schedules of the Changes in Total Pension Liability and Total Pension Liability as a Percentage
of Covered Payroll on pages 67 through 68,the Other Postemployment Benefits' Schedule of Changes in the
Total OPEB Liability and Related Ratios on page 71,and the Local Government Employees' Retirement
System's Schedules of the Proportionate Share of the Net Pension Liability and Contributions on pages 69
through 70 be presented to supplement the basic financial statements. Such information is the responsibility
of management, although not a part of the basic financial statements,required by Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting far placing the basic financial
statements in an appropriate operational, economic, or historical context. We and other auditors have applied
certain limited procedures to the reyuired supplementary information in accordance with auditing standards
generally accepted in the United States of America,which consist of inquiries of management about the
methods of preparing the information and comparing the information for consistency with managemenYs
responses to our inquiries,the basic financial statements, and other knowledge we obtained during our audit
of the basic financial statements. We do not express an opinion or provide any assurance on the information
10
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide
any assurance.
Supplementary Information
Our audit was conducted far the purpose of forming opinions on the financial statements that collectively
comprise the Town of Tarboro's basic financial statements. The combining and individual fund statements,
budgetary schedules, other schedules, statistical section, as well as the accompanying Schedule of
Expenditures of Federal and State Awards as required by Title 2 U.S. Code of Federal Regulations (CFR)
Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards, and the State Single Audit Implementation Act are presented for purposes of additional analysis and
are not a required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other recards used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and certain additional procedures, including comparing and reconciling such
information directly to the underlying accounting and other records used to prepare the basic financial
statements ar to the basic financial statements themselves, and other additional procedures in accardance with
auditing standards generally accepted in the United States of America by us and other auditors. In our
opinion, based on our audit,the procedures performed as described above,the combining and individual fund
financial statements, budgetary schedules, other schedules and Schedule of Expenditures of Federal and State
Awards are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
Other Information
Management is responsible for the other information included in the annual report. The other information
comprises the introductory information and the statistical sections but does not include the basic financial
statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the
other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other
information and consider whether a material inconsistency exits between the other information and the basic
financial statements, or the other information otherwise appears to be materially misstated. If, based on the
work performed,we conclude that an uncorrected material misstatement of the other information exists, we
are required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accardance with Government Auditing Standards,we have also issued our report dated December 21,
2022, on our consideration of the Town of Tarboro's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts,and grants 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 effectiveness of
Town of Tarboro's internal control over financial reporting or on compliance. That report is an integral part
of an audit performed in accordance with Government Auditing Standards in considering Town of Tarboro's
internal control over financial reporting and compliance.
a,, C��
Jo ce and Company, A
Cary,North Carolina
December 21, 2022
11
MANAGEMENT'S DISCUSSION AND ANALYISIS
. . �
• : ��'
„ •
EST. 17b0
�N
��
�r
TOWN OF TARBORO
Management's Discussion and Analysis
As management of the Town of Tarboro, we offer readers of the Town of Tarboro's financial statements
this narrative overview and analysis of the financial activities of the Town of Tarboro for the fiscal year
ended June 30, 2022. We encourage readers to read the information presented here in conjunction with
additional information that we have furnished in the Town's financial statements, which follow this
narrative.
Financial Highlights
• The assets and deferred outflows of resources of the Town eaceeded its liabilities and deferred
inflows of resources at the close of the fiscal year by $30,330,879 (nel position). The net position
of the governmental activities decreased by $375,641, and the net position of the business-type
activities decreased by $2,059,761, fro►n current year activities.
• The government's total net position decreased by $2,435,402, from current year activities due in
large part to Other Post-employment Benefits, Law Enforcement Officers' Special Separation
Allowance, Local Government Employees' Retirement expenses and the annual depreciation
expense.
• Prior period adjustments resulted in an increase in net�position in the amount of $100,637. For
governmental activities there was an increase of$759,457, and for business-type activities there
was a decrease of$658,820, from these adjustments. �
• As ofthe close ofthe current fiscal year,the Town's governmental fur�ds reported combined ending
fund balances of $6,223,357, an increase of $854,471 in comparison with the prior year.
Approximately 64.5 percent of this total amount, or $4,014,606, is non-spendable, restricted, or
assigned.
• At the end of the current fiscal year, unassigned fund balance for the Genera( Fund was$2,378,383
or 21.3 percent of total General Fund expenditures for the fiscal year.
� As of the close of the current fiscal year,the Town's business-type funds reported combined ending
net position of$35,630,161, a total decrease of$2,718,58 I.
12
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to Town of Tarboro's basic financial
statements. The Town's basic financial statements consist of three components; 1) government-wide
financial statements, 2) fund financial statements, and 3) notes to the financial statements (see Figure 1).
The basic financial statements present two different views of the Town through the use of government-wide
statements and fund financial statements. In addition to the basic financial state�nents, this report contains
other supplemental information that will enhance the reader's understanding of the financial condition of
the Town of Tarboro.
Required Components of Annual Finunciul Report
Figure 1
Management's Basic
Discussion and Financial
Analysis Statements
Governrnent-wide Fund Notes to the
Financial Financial Financial
Statements Statements Statements
Summary Detail
Basic Financial Statements
The first two staternents (Exhibits 1 and 2) in the basic financial statements are the Government-wide
Financial Statements. They provide both short and long-term information about the Town's financial
status.
The next statements(Exhibits 3 through 9)are Fund Financial Statements.These statements focus on the
activities of the individual parts of the Town's government. These statements provide more detail than the
government-wide statements. There are three parts to the Fund Financial Statements: 1) the governmental
funds statements; 2)the budgetary comparison statements; and 3) the proprietary fund statements.
The next section ofi the basic financial statements is the 1�lotes.The notes to the financial statements explain
in detail some of the data contained in those statements. After the notes, supplemental information is
13
provided to show details about the Town's individual funds. Budgetary information required by the General
Statutes can also be found in this part of the statements.
Government-wide Financial Statements
The government-wide financial statements are designed to provide the reader with a broad overview of the
Town's finances, similar in format to a financial statement of a private-sector business. The government-
wide statements provide short and long-term information about the Town's financial status as a whole.
The two government-wide statements ►•eport the Town's net position and how it has changed. Net position
is the difference between the Town's total assets and deferred outflows of resources and total liabilities and
deferred inflows of resources. Measuring net position is one way to gauge the Town's financial condition.
The government-wide statements are divided into two categories: 1) gove�-nme��tal activities; and 2)
busii�ess-type activities. The governmental activities include rnost of the Town's basic services such as
public safety, parks and recreation, and general administration. Property tases and State and federal grant
funds finance most of these activities. The business-type activities are those that the Town charges
customers to provide. These include the water and sewer, electric and solid waste services offered by the
Town of Tarboro.
The government-wide financial statements are on Exhibits 1 and 2 of this report.
Fund Financial Statements
The fund financial statements provide a more detailed look at the Town's most significant activities. A
fund is a grouping of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The Town of Tarboro, like a(I other governmental entities
in North Carolina, uses fund accounting to ensure and reflect compliance with finance-related legal
requirements, such as the General Statutes or the Town's budget ordinance. All of the funds of the Town
of Tarboro can be divided into two categories: governmental funds and proprietary funds.
Governmental Funds — Governmental funds are used to account for those functions reported as
governmental activities in the government-wide financial statements. Most ofthe Town's basic services are
accounted for in governmental funds. These funds focus on how assets can readily be converted into cash
flow in and out, and what monies are left at year-end that will be available for spending in the next year.
Governmental funds are reported using an accounting method called modifred accrual accourrting which
provides a short-term spending focus. As a result, the governmental fund financial statements give the
reader a detailed short-tenn view that helps him or her determine ifthere are more or less financial resources
available to finance the Town's programs. The relationship between government activities(reported in the
Statement of Net Position and the Statement of Activities) and governmental funds is described in a
reconciliation that is a part ofthe fund financial statements.
The Town of Tarboro adopts an annual budget for its General Fund, as required by the General Statutes.
The budget is a legally adopted document that incorporates input from the citizens of the Town, the
management of the Town,and the decisions of the Council about which services to provide and how to pay
for them. It also authorizes the Town to obtain funds from identified sources to finance these current period
activities. The budgetary statement provided for the General Fund demonstrates how well the Town
complied with the budget ordinance and whether or not the Town succeeded in providing the services as
planned when the budget was adopted. The budgetary comparison statement uses the budgetary basis of
accounting and is presented using the same format, language, and classifications as the legal budget
document. The statement shows four columns: 1)the original budget as adopted by the Board; 2)the final
14
budget as amended by the Board;3)the actual resources, charges to appropriations, and ending balances in
the General Fund; and 4)the difference or variance between the final budget and the actual resources and
charges.
Proprietary Funds—The Town of Tarboro maintains four enterprise funds.Enterprise Funds are used to
report the same functions presented as business-type activities in the government-wide financial statements.
The Town of Tarboro uses enterprise funds to account for its water and sewer activity, far its electric
operations, for solid waste operations, and for stormwater activities. These funds are the same as those
functions shown in the business-type activities in the Statement of Net Position and the Statement of
Activities.
Notes to the Financial Statements and Other Information
Notes to the Financial Statements — The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements. The notes to the
financial statements begin on page 36 of this report.
Other Information — In addition to the basic financial statements and accompanying notes, this report
includes certain required supplementary information concerning the Town of Tarboro's progress in funding
its obligation to provide pension benefits to its employees. Required supplementary information can be
found beginning on page 67 of this report.
Interdependence with Other Entities — The Town depends on financial resources flowing from, or
associated with,both the federal government and the State of North Carolina. Because of this dependency,
the Town is subject to changes in specific flows of intergovernmental revenues based on modifications to
federal and State laws and federal and State appropriations. It is also subject to changes in investment
earnings and asset values associated with U.S. Treasury Securities because of actions by foreign
governments and other holders of publicly held U.S. Treasury Securities.
15
Government-Wide Financial Analvsis
Net Position—Government-wide financial statements can provide an excellent overall view of the Town's
transactions for the year and its financial condition at year end. In particular, comparing current year
amounts with the previous year's figures can highlight areas in which the Town's finances are improving or
deteriorating.
The following(Figure 2) reflects condensed information on the Town's net position.
Figure 2:
Town of Tarboro
Statement of Net Position
Governmental Business-type Total Primary
Activities Activities Govemment
2022 2021 2022 2021 2022 2021
Assets
Current and other assets $ 8,667,529 $ 6,207,300 $ 20,120,970 $ 20.751.490 $ 28,788,�99 $ 26,958,790
Capital assets 9,358.907 9,636.165 26.885,480 29,047,734 36,244,387 38,683,899
Total Assets 18.026,436 15.R43.465 47.006,450 49,799.224 65,032,886 65,642,689
Deferred outflows o(resources 5,555.719 5,841,543 2,267,794 2,239,736 7,823.513 8,081,279
Liabilities
Long-term liabilities
outstanding 22,483,428 25,327.192 8.825,743 10,571,611 31.309,171 35,898,803
Other liabilities 537,006 503,546 2,346,415 2,=127,530 2,883,421 2.931,076
Total Liabilities 23,020,434 25,830,738 11,172,158 12,999,141 34,192,592 38,829,879
Deferred inflows of resources 5.861,003 1,537,368 2,471,925 691,077 8,332,928 2,228,445
Net Position:
Net invested in capital assets 9,358.907 9,636,165 26,538.955 28.671.731 3�,897,862 3R,307.896
Restricted 3,221,891 3.152,996 - - 3,221,891 3.152,996
Unrestricted (17,880.08U) (18,472,259) 9.091,2U6 9,677,011 (8,788.874) (8,795,248)
Total net position $ (5,299,282) $ (5,683,098) $ 35,630,161 $ 38,348.742 $ 30,330,879 $ 32.665.644
As noted earlier, net position may serve over time as one useful indicator of a government's financial
condition. The assets and deferred outflows of the Town exceeded liabilities and deferred inflows by
$30,330,879 as of June 30, 2022.
As is the case for many entities, the largest portion of net position reflects the Town's net investment in
capital assets (e.g. land, buildings, machinery, and equipment less any related debt still outstanding that
was issued to acquire those assets). These capital assets are used to provide services to citizens;
consequently, they are not available for future spending. Although the Town's net investment in its capital
assets is reduced by the outstanding related debt, it should be noted that the resources needed to repay this
debt must be provided from other sources, since the capital assets cannot be used to pay these related
liabilities. An additional portion of the Town's net position, $3,221,891, represents resources that are
subject to external restrictions on how they may be used.
16
Changes in Net Position — The Town's total revenues and expenditures for governmental and business-
type activities, and their effect on the Town's net position as of June 30, are reflected in the following
(Figure 3).
Figure 3:
Town of Tarboro
Changes in Net Position
Governmental Qusiness-type Total Primary
Activities Acti��ities Government
2022 2021 2022 2021 2022 2021
Revenues:
Progl�am revenues:
Charges for services $ 938,366 $ 301,601 $ 27,715.608 $ 26,317,242 $ 28,653,97d $ 26,618,8a3
Grants&contributions: - -
Operating 1,258,828 896,139 1,1O5J73 1,208,131 2,364,001 2,104,270
Capital 186,780 80,000 - - 186,780 80,000
General revenues:
Property ta�es 3,913,519 3,89d.7d3 - - 3,913,519 3,894,743
Other ta�es 210,747 203,038 - - 210,747 203,038
Other 4,263,303 4,541,272 186,314 303,643 4,449,617 4,844,915
Total revenues 10,771.Sd3 9,916,793 29,007,095 27,829,016 39,778,638 37,745,809
Expenses:
General government 4,475,975 4,458,812 - - 4,475,975 4,458,812
Publicsafety 5,636,181 6,007.014 - - 5,636,181 6,007,014
Transportation 950,287 1,226,384 - - 950,287 1,226,384
Culture&recreation 1,886,041 1,707,862 - - 1,886,041 1,707,862
Electric - - 22,494,362 21,035,041 22,494,362 21,035,041
Water&sewer - - 5,055,977 5,176.190 5,055,977 5,176,190
Solid waste - - 1,249,878 1,207,869 1,249,878 1,207,869
Stormwater - - 465,339 481,568 465,339 481,568
Total e�enses 12,948,484 13,400,072 29,265,556 27,900,668 42,214,Od0 41,300,740
Increase(decrease)
in net position
beforetransters (2.176,941) (3,483,279) (258,461) (71,652) (2,435,402) (3,554,931)
Transfers 1,801,300 1,715,000 (1,801,300) (1,715,000) - -
Increase(decrease)
in net position f375,641) (1,768,279) (2,059,761) (1,786,652) (2,435,402) (3,554,931)
Net position,July 1 (�,683,098) (3,91d,819) 38,348,742 40,135,394 32,665,644 36,220,575
Prior period adjustment 759,457 - (658,820) - 100,637 -
Net position,June 30 $ (5,299,282) $ (5,683,098) $ 35,630,161 $ 38,348,742 $ 30,330,879 $ 32,665,644
17
Governmental Activities—Governmental activities increased the Town's net position by $383,816 from
the prior year. Key elements of the current year governmental activities change in net position are as
follows:
• Total revenues for governmental activities increased by$854,750 when compared to the prior year,
including a $469,469 increase in operating and capital grant funding and capital contributions.
This increase is primarily attributable to the American Rescue Plan Act.
• The Town's overall pension expense for the year decreased in response to a reduced liability and
strong market returns. While the insurance expenses related to both operations and employee
benefits continue to rise.
• Unrestricted intergovernmental, which includes items such as sales and franchise taxes, reflected
continued growth in the Town's economy showing an increase of$291,290 over fiscal year 2021.
• lncreases were reflected in e�penses for Genera(Government and Cultural and Recreational in the
amounts of$17,163 and $178,179, respectively. While Public Safety and Transportation expenses
decreased by $370,833 and $276,097, respectively.
Business-type activities - Business-type activities decreased the Town's net position by $2,718,581 from
operations. Key elements of the current year's activities are as follows:
• As the COVID related restrictions lifted and day to day operations for businesses and industries
returned to more nonnal operations, the enterprise funds felt the effects.
• Total revenues for business-type activities increased by $1,178,079 as compared to the prior year,
including an investment income increase of$57,999. In cesponse, total expenses for business-type
activities also increased as the costs of wholesale power purchases and water treatment operations
increased proportionately to the increased revenues. The total increase in expenses was$1,364,888
when compared to the prior year.
• As in the governmental funds, the pension expense for the year decreased in response to a reduced
liability and strong market returns.
• The net change in position for all business-type activities for the current fiscal year was a decrease
of $2,718,58�L The changes in n�et position for Electric, Water and Sewer, Solid Waste, and
Stormwater were$(1,937,365); ($878,435); (5,022) and $]02,241, respectively.
• The business-type activities transferred net funds to the governmental funds totaling $I,80I,300.
This is an increase of$86,300 compared to the prior year.
Financial Analysis of the Town's Funds
As noted earlier,the Town uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements.
Governmental Funds —The focus of the Town's governmental funds is to provide information on near-
tenn inflows, outflows, and balances of usable resources. Such information is useful in assessing the
Town's financing requirements. Specifically, unassigned fund balance can be a useful means of a
government's net resources available for spending at the end of the fiscal year.
As of the end of the current tiscal year, the Town's combined governmental funds reported combined
ending fund balances of$6,223,357, an increase of$854,471 in comparison with the prior year, including
18
a prior period adjustment. The unassigned fund balance is available for spending at the government's
discretion. Due to restrictions related to long-term receivables and those mandated by grantor agencies,the
total unassigned fund balance for the governmental funds is$2,208,751.Fund balance is classified into four
other categories: non-spendable,restricted, committed,and assigned. Please refer to note E.12 on pages 42
and 43 for information about fund balance categories. The current year fund balance that is non-spendable
is $156,286. The current year fund balance that has been restricted is $3,221,891. The current year fund
balance that has been assigned is $636,429, and it is designated for subsequent year's expenditures.
The General Fund is part of the governmental funds and is the chief operating fund of the Town. At the
end of the current fiscal year, unassigned fund balance of the General Fund was $2,378,383, while total
fund balance reached$6,238,916.As a measure of the General Fund's liquidity,it may be useful to compare
both unassigned fund balance and total fund balance to total fund expenditures. Unassigned fund balance
represents 21.3% of total General Fund expenditures, while total fund balance represents 55.8% of that
same amount.
As of the end of the current year,the Town's governmental funds reported combined ending fund balances
of$6,223,357, up $854,471 in comparison with the prior year. Included in this change in fund balance is
an increase in fund balance in the General Fund of$524,451 and an increase of$330,020 in Non-Major
Governmental Funds. The General Fund increase can be attributed to the previously mentioned increase in
sales tax distributions and managemenY s continued diligence in managing operational costs.The remaining
non-major governmental funds reported a combined decrease. Levels of fund balance in Special Revenue
funds and Capital Projects funds will vary as their projects transition through various project completion
phases.
General Fund Budgetary Highlights — During the fiscal year, the Town revised the budget on several
occasions. Generally,budget amendments fall into one of three categories: 1)amendments made to adjust
the estimates that are used to prepare the original budget ordinance once exact information is available; 2)
amendments made to recognize new funding amounts from external sources, such as Federal and State
grants; and 3) increases in appropriations that become necessary to maintain services.
There were several reasons that the Town revised its budget throughout the year. The budget revenues
increased as the Town received several small grants and contributions. Although expenditures were kept
well below the budgeted amounts during the year, there were amendments made to the budget for
unexpected capital outlay expenditures.
The actual revenues for the General Fund were more than the budget amount by$497,824.Ad valorem tax
revenues were slightly lower than budgeted.Intergovernmental revenues again saw a notable increase from
the prior year and exceeded the budgeted amount by $463,783, mostly due to a conservative projection
based on an uncertain economy. Permits and fees along with sales and service revenues were also ahead of
projections mainly due to the Town's return to more normal operations after the prior year's facility closures
and other programming reductions due to COVID-19. Investment earnings were $11,386 more than
budgeted due to conservative budgeting and a strengthening economy.
The actual operating expenses for the General Fund were less than the budget amount by $1,108,131. The
most significant savings were realized due to funds appropriated to projects that were unspent at fiscal year-
end along with initiatives to reduce spending at the onset of COVID-19 that remained in place for much of
the fiscal year. General Government departments had operating expenditures less than the budget of
$375,443. There were budget savings within public safety with expenditures less than the budget by
$323,927. Amounts budgeted but unspent for transportation and cultural and recreational items were
$200,887 and $207,874, respectively. Of these amounts, $421,771 was re-appropriated to fiscal year 2023
for project completions.
19
Proprietary Funds—The Town of Tarboro's proprietary funds provide the same type of information found
in the government-wide statements buf in more detail. Net position at the end of the year amounted to
$25,950,777 for the Electric Fund, $8,512,950 for the Water and Sewer Fund, $371,331 for the Solid Waste
Fund, and $795,103 for the Stormwater Fund. The change in net position for all four funds was
$(1,937,365); ($878,435); (5,022)and$102,241, respectively for a total net change of($2,718,581).
As mentioned numerous times previously, the COVID-19 pandemic had wide effects on all operations of
the Town of Tarboro, including the proprietary funds. Electric Fund operating revenues and expenditures
remained in line with fiscal year 2021 numbers as a result of continued decreased business operations during
the year due to the pandemic. The Water& Sewer Fund also reflect operating revenues and non-personnel
operating expenses in line with the prior year for similar reasons. The remaining proprietary funds, Solid
Waste and Stormwater, are not consumption based, and therefore are not impacted by decreased business
operations to the extent that the consumption based utilities are.
Capital Asset and Debt Administration
Capital assets— The Town of Tarboro's investment in capital assets for its governmental and business—
type activities as of June�30, 2022, totals $36,244,3$7 (net�of accumulated depreciation). These assets
include buildings, roads and bridges, land, machinery and equipment, park facilities, distribution system
and vehicles.
Major capital asset transactions during the year were limited and include the following:
Governmental Funds:
Additions
• Courthouse Square Project- $193,738
• Fire Training Facility -$127,589
• Tractor—$34,776
• Police Software Upgrade—$45,308 �
• Hilma Circle Project—$75,700
Disposals
• Vehicles - $79,068 � �
• UPS for 9l 1 —$24,272
Proprietary Funds:
Additions
• AMI System Implementation Project- $40,579
• Service Trucks (3)—$155,926
• Colony Woods Stormwater Project- $100,000
20
Town of Tarboro,North Carolina
Capital Assets
Figure 8
Governmental Business-type
Activities Activities Total
2022 2022 2022 2021
Land $ 1,919,166 $ 1,285,932 $ 3,245,098 $ 3,195,125
Buildings&Other
Improvements 2,940,660 266,565 3,207,225 3,173,173
Infrastructure 3,111,512 - 3,111,512 3,318,565
Substations,Lines,
Equipment - 14,351,580 14,351,580 15,655,943
Plant&Distribution
Systems - 8,831,015 8,831,015 9,892,516
Equipment 1,192,138 2,150,388 3,342,526 3,448,577
Construction
in progress 195,431 - 195,431 -
Total Capita(Assets
(net of accumulated
depreciation) $ 9,358,907 $ 26,885,480 $ 36,244,387 $ 38,683,899
Additional information on the Town's Capital Assets can be found in Note I, Detail Notes on All Funds,
Section A.4, beginning on page 46 of this report.
Long-term Debt. As of June 30, 2022,the Town of Tarboro had no bonded debt.
North Carolina General Statutes limit the amount of general obligation debt that a unit of government can
issue to 8 percent of the total assessed value of taxable property located within that government's
boundaries. The legal debt margin for the Town is $76,335,005.
Additional information regarding the Town's long-term debt can be found in Note I, Detail Notes on All
Funds, Section ?, beginning on page 62 of this report.
21
Economic Factors and Next Year's Budgets and Rates
The following are key economic indicators of the Town. These factors have been considered when
preparing the budget for fiscal year ending June 30, 2023.
• The unemployment rate for Edgecombe County was 7.5% as reported by the NC Department of
Commerce at June 30, 2022. This is a 0.7% decrease in the unemployment rate compared to the
prior year but remains higher than the national average by 1.5%
• The Town experienced a year of positive growth in revenues from property tax and
intergovernmental sources. Total property tax revenues exceeded prior year figures,and this growth
is expected to continue for the coming year as residential construction numbers continue to improve.
• Commerciat business has expanded near the Highway 64 interchange with the current construction
of several well-known operations which will bring customers from both passing highway traffic as
well as our retail trade area of over fifty-thousand residents within our surrounding rural area.
Budget Highlights for the Fiscal Year Ending June 30,2023
Governmental Activities: The COVID-19 pandemic and its economic impacts continued to be at the
forefront during the Town's budget process for the 2022-2023 fiscal year. The Town has always strived to
budget conservatively, but during this time of crisis, difficult choices had to be made when preparing and
adopting this budget. Due to the uncertainty of the impact on the Town's revenues, as well as the impact
on the overall state and national economy, capital outlay was limited to essential needs, critical
infrastructure, and completion of ongoing projects that could not be delayed.
The governmental fund's primary revenue sources are property taxes and intergovernmental revenues.
There was no change in the property tax rate of$0.41 per$100 valuation for the fiscal year ending June 30,
2023. The Town's budget contains several revenue sources that are dependent on the general economy.
Among these are sales taxes,property taxes, interest income,and permit fees. The General Fund continues
to have no bonded indebtedness, and the Town pay plan was adjusted by a 5% market adjustment for FY
2022-2023.
Business—type Activities: Electric rates and the Stormwater fees remained unchanged for FY 2022-2023.
Due to rising costs of operations including materials,equipment,and third-party landfill contracts, both the
Water and Sewer rates and the Solid Waste fee were increased for the 2023 fiscal year. The Town's
enterprise funds make the customers the top priority, and all efforts are made to provide the most reliable
services at the lowest costs possible.
Requests for Information
This report is designed to provide an overview of the Town's finances for those with an interest in this area.
Questions concerning any of the information found in this report or requests for additional information
should be directed to the Finance Director,Town of Tarboro, P.O. Box 220,Tarboro,NC 27886. One can
also call (252) 641-4212, visit our website www.tarboro-nc.com or send an email to annemann�c�tarboro-
nc.com for more information.
22
BASIC FINANCIAL STATEMENTS
Town of Tarboro, North Carolina
Statement of Net Position
June 30, 2022
Exhibit 1
Page 1 of 2
Primary Government
Governmental Business-type
Activities Activities Total
Assets:
Current assets:
Cash and cash equivalents $ 5,490,125 $ 14,236,326 $ 19,726,451
Restricted cash 871,235 653,510 1,524,745
Taxes receivables (net) 391,597 - 391,597
Accrued interest receivable 5,975 15,065 21,040
Accounts receivable (net) 101,909 3,556,334 3,658,243
Due from other governments 1,628,929 120,946 1,749,875
Prepaid items 49,668 34,740 84,408
Inventories 106,618 1,504,049 1,610,667
Lease receivable 21,473 - 21,473
Total current assets 8,667,529 20,120,970 28,788,499
Non-current assets:
Capital assets:
Land and non-depreciable improvements 2,114,597 1,285,932 3,400,529
Other capital assets, net 7,244,310 25,599,548 32,843,858
Total non-current assets 9,358;907 26,885,480 36,244,387
Total assets 18,026,436 47,006,450 65,032,886
Deferred Outflows of Resources:
Pension deferrals 2,021,071 1,155,352 3,176,423
OPEB deferrals 3,534,648 1,112,442 4,647,090
Total deferred outflows of resources 5,555,719 2,267,794 7,823,513
Liabilities:
Current liabilities:
Accounts payable 445,210 1,631,041 2,076,221
Payable from restricted assets 4,966 653,510 658,476
Compensated absences-current 86,830 32,416 119,246
Current portions of notes payable - 29,478 29,478
Total current liabilities 537,006 2,346,415 2,883,421
Long-term liabilities:
Compensated absences 636,750 237,716 874,466
Net pension liability- LGERS 1,186,113 636,566 1,822,679
Total pension liability- LEO 1,857,307 - 1,857,307
Total OPEB liability 18,803,258 7,634,414 26,437,672
Due in more than one year - 317,047 317,047
Total long-term liabilities 22,483,428 8,825,743 31,309,171
Totalliabilities 23,020,434 11,172,158 34,192,592
The notes to the financial statements are an integral part of this statement.
23
Town of Tarboro, North Carolina
Statement of Net Position
June 30, 2022
Exhibit 1
Page2of2
Primary Government
Governmental Business-type
Activities Activities Total
Deferred Inflows of Resources:
Prepaid taxes 13,550 - 13,550
Grants 1,520,642 230,839 1,751,481
Leases 14,033 - 14,033
OPEB deferrals 2,628,986 934,981 3,563,967
Pension deferrals 1,683,792 1,306,105 2,989,897
Total deferred inflows of resources 5,861,003 2,471,925 8,332,928
Net Position:
Net investment in capital assets 9,358,907 26,538,955 35,897,862
Restricted for:
Stabilization by State statute 2,196,583 - 2,196,583
Public safety 154,073 - 154,073
Streets 871,235 - 871,235
Unrestricted (17,880,080) 9,091,206 (8,788,874)
Total net position $ (5,299,282) $ 35,630,161 $ 30,330,879
The notes to the financial statements are an integral part of this statement.
24
Town of Tarboro, North Carolina
Statement of Activities
For the Year Ended June 30, 2022
Exhibit 2
Page 1 of 2
Program Revenues
Operating Capital Grants
Charges for Grants and and
Expenses Services Contributions Contributions
Functions/Programs
Primary government:
Governmental Activities:
General govemment $ 4,475,975 $ 761,884 $ 705,714 $ -
Public safety 5,636,181 - 117,309 186,780
Transportation 95Q,287 - 346,528 -
Cultural and Recreational 1,886,041 176,482 89,277 -
Total governmental activities 12,948,484 938,366 1,258,828 186,78Q
Business-type activities:
Electric 22,494,362 21,861,293 1,043,893 -
Water and Sewer 5,055,977 4,057,482 53,224 -
Solid waste 1,249,878 1,230,968 8,056 -
Stormwater 465,339 565,865 - -
Total business-type activities 29,265,556 27,715,608 1,105,173 -
Total primary government $ 42,214,040 $ 28,653,974 $ 2,364,001 $ 186,780
The notes to the financial statements are an integral part of this statement.
25
Town of Tarboro, North Carolina
Statement of Activities
For the Year Ended June 30, 2022
Exhibit 2
Page 2 of 2
Net(Expense) Revenue and Changes in
Net Position Primary Government
Governmental Business-type
Activities Activities Total
Functions/Programs
Primary government:
Govemmental Activities:
General govemment $ (3,008,377) $ - $ (3,008,377)
Public safety (5,332,092) - (5,332,092)
Transportation (603,759) - (603,759)
Cultural and Recreational (1,620,282) - (1,620,282)
Total governmental activities (10,564,510) - (10,564,510)
Business-type activities:
Electric - 410,824 410,824
Water and Sewer - (945,271) (945,271)
Solid waste - (10,854) (10,854)
Stormwater - 100,526 100,526
Total business-type activities - (444,775) (444,775)
Total primary government (10,564,510) (444,775) (11,009,285)
General revenues
Taxes:
Property taxes, levied for general purposes 3,913,519 - 3,913,519
Other taxes and licenses 210,747 - 210,747
Grants and contributions not restricted to specific programs 4,157,114 - 4,157,114
Unrestricted investment earnings 20,058 69,728 89,786
Miscellaneous 86,131 116,586 202,717
Total general revenues 8,387,569 186,314 8,573,883
Transfers 1,801,300 (1,801,300) -
Total general revenues and transfers 10,188,869 (1,614,986) 8,573,883
Change in net position (375;641) (2,059,761) (2,435,402)
Net position, beginning (as previously reported) (5,683,098) 38,348,742 32,665,644
Prior period adjustment 759,457 (658,820) 100,637
Net position, beginning (restated) (4,923,641) 37,689,922 32,766,281
Net position,ending $ (5,299,282) $ 35,630,161 $ 30,330,879
The notes to the financial statements are an integral part of this statement.
26
Town of Tarboro, North Carolina
Balance Sheets
Governmental Funds
June 30,2022
Exhibit 3
Page 1 of 2
Major Fund Non-Major Total
ARP Governmental Governmental
General Fund Funding Funds Funds
Assets:
Cash and cash equivalents $ 3,421,277 $ 1,520,642 $ 548,206 $ 5,490,125
Restricted cash and cash equivalents 871,235 - - 871,235
Receivables, net:
Taxes 391,597 - - 391,597
Accounts 101,712 - - 101,712
Accrued interest receivable 5,975 - 197 6,172
Due from other governments 1,258,554 - 370,375 1,628,929
Lease receivable 21,473 - - 21,473
Prepaids 49,668 - - 49,668
Inventories 106,618 - - 106,618
Total assets $ 6,228,109 $ 1,520,642 $ 918,778 8,667,529
Liabilities:
Accounts payable and accrued liabilities $ 387,944 $ - $ 57,266 $ 445,210
Payable from restricted assets 4,966 - - 4,966
Due to other funds (877,071) - 877,071 -
Totalliabilities (484,161) - 934,337 450,176
Deferred Inflows of Resources:
Property taxes receivable 352,627 - - 352,627
Special assessments, net 93,144 - - 93,144
Prepaid taxes 13,550 - - 13,550
Lease receivable 14,033 - - 14,033
Deferred grants - 1,520,642 - 1,520,642
Total deferred inflows of resources 473,354 1,520,642 - 1,993,996
Fund Balances:
Non-spendable:
Inventories 106,618 - - 106,618
Prepaids 49,668 - - 49,668
Restricted:
Stabilization by State statute 2,196,583 - - 2,196,583
Public safety - - 154,073 154,073
Streets 871,235 - - 871,235
Assigned:
Subsequent year's expenditures 636,429 - - 636,429
Unassigned 2,378,383 - (169,632) 2,208,751
Total fund balances 6,238,916 - (15,559) 6,223,357
Total liabilities,deferred inflows of resources
and fund balances $ 6,228,109 $ 1,520,642 $ 918,778 $ 8,667,529
The notes to the financial statements are an integral part of this statement.
27
Town of Tarboro, North Carolina
Balance Sheets
Governmental Funds
June 30, 2022
Exhibit 3
Page 2 of 2
Amounts reported for governmental activities in the statement of net position are different because:
Total Fund Balance, Governmental Funds $ 6,223,357
Capital assets used in govemmental activities are not financial resources and
therefore are not reported in the funds.
Gross capital assets at historical cost $ 75,708,829
Accumulated depreciation (66,349,922) 9,358,907
Earned revenues considered deferred inflows of resources in fund statements. 445,771
Deferred outflows of resources related to pensions are not reported in the funds. 2,021,071
Deferred outflows of resources related to OPEB are not reported in the funds. 3,534,648
Long-term liabilities used in governmental activities are not financial uses and
therfore are not reported in the funds:
Net pension liability- LGERS (1,186,113)
Total pension liability- LEO (1,857,307)
OPEB liability (18,803,258)
Other long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds. (723,580)
Deferred inflows of resources related to pensions are not reported in the funds. (1,683,792)
Deferred inflows of resources reiated to OPEB are not reported in the funds (2,628,986)
Net position of govemmental activities $ (5,299,282)
The notes to the financial statements are an integral pa�t of this statement.
28
Town of Tarboro,North Carolina
Statement of Revenues,Expenditures,and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30,2022
Exhibit 4
Page 1 of 2
Major Funds Non-Major Total
ARP Governmental Governmental
General Fund Funding Funds Funds
Revenues:
Ad valorem taxes $ 3,855,630 $ - $ - $ 3,855,630
Other taxes and licenses 210,747 - - 210,747
Unrestricted intergovernmental 4,157,114 - - 4,157,114
Restricted intergovernmental 460,109 186,780 798,719 1,445,608
Permits and fees 122,062 - - 122,062
Sales and services 263,804 - - 263,804
Investment earnings 19,386 - 672 20,058
Miscellaneous 93,757 - 42 93,799
Charges for services 552,500 - - 552,500
Total revenues 9,735,109 186,780 799,433 10,721;322
Expenditures:
Current:
General government 2,977,009 - 705,789 3,682,798
Public safety 5,217,074 - 77,600 5,294,674
Transportation 753,782 - - 753,782
Cultural and Recreational 1,645,604 - - 1,645,604
Capital outlay 596,349 186;780 8,651 791,780
Total expenditures 11,189,818 186,780 792,040 12,168,638
Excess(deficiency)of revenues over
(under)expenditures (1,454,709) - 7,393 (1,447,316)
Other Financing Sources(Uses):
Loss on sale of inventory (694) - - (694)
Transfers to other funds (76,048) - - (76,048)
Transfers from other funds 1,801,300 - 76,048 1,877,348
Total other financing sources(uses) 1,724,558 - 76,048 1,800,606
Net change in fund balance 269,849 - 83,441 353,290
Fund balances, beginning(as originally stated) 5,714,465 - (345,579) 5,368,886
Prior period adjustment 254,602 - 246,579 501,181
Fund balances, beginning (as restated) 5,969,067 - (99,000) 5,870,067
Fund balances, ending $ 6,238,916 $ - $ (15,559) $ 6,223,357
The notes to the financial statements are an integral part of fhis sfatement.
29
Town of Tarboro, North Carolina
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2022
Exhibit 4
Page 2 of 2
Amounts reported for governmental activities in the statement of activities are different because:
Net changes in fund balances-total governmental funds $ 353,290
Governmental funds report capital outlays as expenditures. However, in the
Statement of Activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense. This is the amount by which
depreciation exceeded capital outlays in the current period.
Capital outlay expenditures which were capitalized 791,780
Depreciation expense for govemmental assets (1,327,314) (535,534)
Contributions to the pension plan in the current fiscal year are not included in the
Statement of Activities. 546,091
Benefit payments paid and administrative expense for the LEOSSA are not
included on the Statement of Activities. 77,818
OPEB benefit payments and administrative costs made in the current fiscal year
are not included on the Statement of Activities. 401,537
Revenues in the statement of activities that do not provide current financial
resources are not reported as revenues in fhe funds.
Change in unavailable revenue for tax revenues 57,889
Change in unavailable revenue (6,974)
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
govemmental funds.
Compensated absences (113,005)
Pension expense (616,050)
OPEB expense (540,703) (1,269,758)
Total changes in net position of governmental activities $ (375,641)
The notes to the financial statements are an integral part of this statement.
30
Town of Tarboro, North Carolina
Statement of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
General Fund
For the Year Ended June 30, 2022
Exhibit 5
Variance
Budgeted Amounts Actual Positive/
Original Final Amounts (Negative)
Revenues:
Ad valorem taxes $ 3,882,250 $ 3,882,250 $ 3,855,630 $ (26,620)
Other taxes and licenses 234,500 234,500 210,747 (23,753)
Unrestricted intergovernmental 3,740,000 3,740,000 4,157,114 417,114
Restricted intergovernmental 392,000 413,440 460,109 46,669
Permits and fees 115,150 115,150 122,062 6,912
Sales and services 203,000 218,000 263,804 45,804
Investment eamings 8;000 8,000 19,386 11,386
Miscellaneous 70,000 73,445 93,757 20,312
Charges for services 552,500 552,500 552,500 -
Total revenues 9,197,400 9,237,285 9,735,109 497,824
Expenditures:
Current:
General government 3,295,238 3,471,442 3,095,999 375,443
Public Safety 5,580,925 5,771,653 5,447,726 323,927
Transportation 980,620 1,155,000 954,113 200,887
Cultural and Recreational 1,849,730 1,899,854 1,691,980 207,874
Total expenditures 11,706,513 12,297,949 11,189,818 1,108,131
Revenues over(under) expenditures (2,509,113) (3,060,664) (1,454,709) 1,605,955
Other financing sources (uses):
Appropriated fund balance 707,813 1,259,364 - (1,259,364)
Loss on sale of inventory - - (694) (694)
Transfers to other funds - - (76,048) (76,048)
Transfers from other funds 1,801,300 1,801,300 1,801,300 -
Total other financing sources (uses) 2,509,1?3 3;060,664 1,724,558 (1,336,106)
Revenues and other sources over(under)
expenditures and other uses $ - $ - 269,849 $ 269,849
Fund balances, beginning (as originally stated) 5,714,465
Prior period adjustment 254,602
Fund balances, beginning (as restated) 5,969,067
Fund balances, ending $ 6,238,916
The notes to the financial statements are an integral part of this statement.
31
Town of Tarboro, North Carolina
Statement of Net Position
Proprietary Funds
June 30, ?022
Exhibit 6
Electric Water and Solid Waste Stormwater
Fund Sewer Fund Fund Fund Total
Assets:
Current assets:
Cash and investments $ 11,382,838 $ 2,058,303 $ 475,118 $ 320,067 $ 14,236,326
Restricted cash 599,960 53,550 - - 653,510
Accounts receivable (net) 2,691,890 594,749 173,691 96,004 3,556,334
Accrued interest receivable 12,054 2,171 504 336 15,065
Sales tax receivable 56,706 51,831 9,820 2,589 120,946
Prepaid items 21,756 12,984 - - 34,740
Inventories 1,422,755 81,294 - - 1,504,049
Total current assets 16,187,959 2,854,882 659,133 418,996 20,120,970
Noncurrent assets:
Capital assets:
Land, non-depreciable improvements, 858,368 427,564 - - 1,285,932
Othercapitalassets, netof 15,324,918 9,728,106 141,111 405,413 25,599,548
Capital assets(net) 16,183,286 10,155,670 141,111 405,413 26,885,480
Net pension asset - - - 29,774 29,774
Total noncurrent assets 16,183,286 10,155,670 141,111 435,187 26,915,254
Total assets 32,371,245 13,010,552 800,244 854,183 47,036,224
Deferred OutFlows of Resources:
Pension deferrals 502,405 486,527 124,796 41,624 1,155,352
OPEB deferrals 512,331 600,111 - - 1,112,442
Total deferred outflows of resources 1,014,736 1,086,638 124,796 41;624 2,267,794
Liabilities:
Current liabilities:
Accounts payable and accrued 1,438,887 106,603 73,296 12,225 1,631,011
Payable from restricted assets 599,960 53,550 - - 653,510
Compensated absences-current 15,230 12,474 3,081 1,631 32,416
Current portion of long-term debt - 29,478 - - 29,478
Total current liabilities 2,054,077 202,105 76,377 13,856 2,346,415
Non-current liabilities:
Compensated absences 111,690 91,477 22,590 11,959 237,716
Net pension liability 288,126 309,225 68,989 - 666,340
Total OPEB liability 3,751,660 3,668,572 214,182 - 7,634,414
Non-current portion of long-term debt - 317,047 - - 317,047
Total non-current liabilities 4,151,476 4,386,321 305,761 11,959 8,855,517
Totalliabilities 6,205,553 4,588,426 382,138 25,815 11,201,932
Deferred Inflows of Resources:
OPEB deferrals 429,377 470,493 35,111 - 934,981
Deferred revenues 230,839 - - - 230,839
Pension deferrals 569,435 525,321 136,460 74,889 1,306,105
Total deferred inflows of resources 1,229,651 995,814 171,571 74,889 2,471,925
Net Position:
Net investment in capital assets 16,183,286 9,809,145 141,111 405,413 26,538,955
Unrestricted 9,767,491 (1,296,195) 230,220 389,690 9,091,206
Total net position $ 25,950,777 $ 8,512,950 $ 371,331 $ 795,103 $ 35,630,161
The notes to the financial statements are an integral part of th3s�statement
Town of Tarboro, North Carolina
Statement of Revenues, Expenses, and Changes in Fund Net Position
Proprietary Funds
For the Year Ended June 30, 2022
Exhibit 7
Electric Water and Solid Waste Stormwater
Fund Sewer Fund Fund Fund Total
Operating Revenues:
Charges for services $ 21,861,293 $ 4,017,788 $ 1;230,968 $ 565,865 $ 27,675,914
Water and sewer taps - 39,694 - - 39,694
Other operating revenues 1,043,893 53,224 8,056 - 1,105,173
Total operating revenues 22,905,186 4,110,706 1,239,024 565,865 28,820,781
Operating Expenses:
Administration 3,151,863 2,854,024 1,225,681 98,536 7,330,104
Load management 186,819 - - - 186,819
Electric operations 606,822 - - - 606,822
Electric power purchases 16,928,740 - - - 16,928,740
Water treatment and distribution - 598,197 - - 598,197
Waste collection and treatment - 515,912 - - 515,912
Stormwater collection - - - 327,139 327,139
Depreciation 1,620,118 1,087,844 24,197 39,664 2,771,823
Total operating expenses 22,494,362 5,055,977 1,249,878 465,339 29,265,556
Operating income (loss) 410,824 (945,271) (10,854) 100,526 (444,775)
Non-Operating Revenues (Expenses):
Investment earnings 55,711 10,225 2,212 1,580 69,728
Other non-operating revenues 56,220 56,611 3,620 135 116,586
Total non-operating revenues 111,931 66,836 5,832 1,715 186,314
Income (loss) before contributions 522,755 (878,435) (5,022) 102,241 (258,461)
Transfers from (to) other funds (1,801,300) - - (1,801,300)
Change in net position (1,278,545) (878,435) (5,022) 102,241 (2,059,761)
Total net position, beginning
(as previously reported) 27,888,142 9,391,385 376,353 692,862 38,348,742
Prior period adjustment (658,820) - - - (658,820)
Total net position, beginning (as
restated) 27,229,322 9,391,385 376,353 692,862 37,689,922
Total net position, ending 25,950,777 8,512,950 $ 371,331 795,103 35,630,161
The notes to the financial statements are an integral part of this statement.
33
Town of Tarboro, North Carolina
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Exhibit 8
Electric Water and Solid Waste Stormwater
Fund Sewer Fund Fund Fund Totai
Cash Flows from Operating Activities:
Cash received from customers $ 22,963,828 $ 4,119,682 $ 1,217,789 $ 565,493 $ 28,866,792
Cash paid for goods and services (18,799,904) (1,667,699) (610,310) (97,312) (21,175,225)
Cash paid to or on behalf of employees for
services (2,346,564) (2,319,660) (610,462) (343,279) (5,619,965}
Net customer deposits 55,174 5,845 - - 61,019
Net cash provided (used) by
operating activities 1,872,534 138,168 (2,983) 124,902 2,132,621
Cash Ftows from Noncapital Financing Activities:
Transfers to other funds (1,801,300) - - - (1,801,300)
Other noncapital financing activites 56,221 56,610 3,620 134 116,585
Net cash provided (used) by noncapital
financing activities (4,745,079) 56,610 3,620 134 (1,684,715)
Cash Flows from Capital and Related Financing Activities:
Acquisition and construction of capital
assets (346,406) (114,959) - (148,203) (609,568)
Principal paid on bonds and installment
purchases - (29,478) - - (29,478}
Net cash provided (used) by capital and
related financing activities (346,406) (144,437) - (148,203) (639,046)
Cash Flows from Investing Activities:
Interest and dividends 55,711 10,225 2,212 1,580 69,728
Net cash provided (used) by investing
activities 55,711 10,225 2,212 1,580 69,728
Net increase (decrease) in cash and (163,240) 60,566 2,849 (21,587) (121,412)
Balances, beginning 12,146,038 2,051,287 472,269 341,654 15,011,248
Balances, ending $ 11,982,798 $ 2,111,853 $ 475,118 $ 320,067 $ 14,889,836
The notes to the financial statements are an integra/part of this statement.
34
Town of Tarboro, North Carolina
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2022
Exhibit 8
Electric Water and Soiid Waste Stormwater
Fund Sewer Fund Fund Fund Total
Reconciliation of operating income to net cash provided by operating activities
Operating income (loss) $ 410,824 $ (945,271) $ (10,854) $ 100,526 $ (444,775)
Adjustments to reconcile operating income
Depreciation 1,620,118 1,087,844 24,197 39,664 2,771,823
Changes in assets and liabilities:
(Increase) decrease in accounts
receivable (36,983) 8,976 (21,235) (372) (49,614)
(Increase) decrease in prepaid items (21,756) (12,984) - - (34,740)
(Increase) decrease in inventory (62,647) (2,711) - - (65,358)
Increase (decrease) in accounts payable
and accrued liabilities (149,512) 3,539 7,474 (5,399) (143,898)
Increase (decrease) in customer
deposits 55,174 5,845 - - 61,019
Increase (decrease) in compensated
absences (1,623) 13,518 5,217 (2,420) 14,692
(Increase) decrease in deferred outflows
of resources-pensions (49,615) (45,797) (11,958) (6,615) (113,985)
(Increase) decrease in deferred outflows
of resources- OPEB 35,037 45,843 5,047 - 85,927
Increase (decrease) in net pension
liability (565,284) (521,799) (136,248) (75,371) (1,298,702)
Increase (decrease) in deferred inflows
of resources-pensions 561,671 518,465 135,377 74,889 1,290,402
Increase (decrease) in deferred inflows
of resources - OPEB 203,998 190,823 - - 394,821
Increase (decrease) in deferred inflows
of resources- Deferred revenue 95,625 - - - 95,625
Increase (decrease) in OPEB �iability (222,493) (208,123) - - (430,616)
Total adjustments 1,461,710 1,083,439 7,871 24,376 2,577,396
Net cash provided by operating activities $ 1,872,534 $ 138,168 $ (2,983) $ 124,902 $ 2,132,621
Noncash investing, capital, and financing activities:
None.
The notes to the financial statements are an integral part of this statement
35
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
I. Summary of Siqnificant Accountinq Policies
The accounting policies of the Town of Tarboro (the Town) conform to accounting principles
generally accepted in the United States of America as applicable to governments. The following is
a summary of the more significant accounting policies:
A. Reportinq Entitv
The Town is a municipal corporation, which is governed by an elected mayor and an eight-
member council. Generally accepted accounting principles require that the reporting entity
include (1)the primary government, (2) organizations for which the primary government is
financialiy accountable and (3)other organizations for which the nature and significance of
their relationship with the primary government are such that exclusion would cause the
reporting entity's financial statements to be misleading or incomplete. The criteria provided
in Governmental Accounting Standards Board Statement No. 14 have been considered
and there are no agencies or entities in which shouid be presented as component units of
the Town.
B. Basis of Presentation
Government-wide Statements:The statement of net position and the statement of activities
display information about the primary government. These statements include the financial
activities of the overall government. Eliminations have been made to minimize the double
counting of internal activities; however, interfund services provided and used are not
eliminated in the process of consolidation. These statements distinguish between the
governmental and business-type activities of the Town. Governmental activities generally
are financed through taxes, intergovernmental revenues, and other non-exchange
transactions. Business-type activities are financed in whole or in part by fees charged to
extemal parties.
The Statement of Activities presents a comparison between direct expenses and program
revenues for the different business-type activities of the Town and for each function of the
Town's governmental activities. Direct expenses are those that are specifically associated
with a program or function and, therefore, are clearly identifiable to a particular function.
Indirect expense allocations that have been made in the funds have been reversed for the
statement of activities. Program revenues include (a) fees and charges paid by the
recipients of goods or services offered by the programs and (b) grants and contributions
that are restricted to meeting the operational or capital requirements of a specific program.
. Revenues that are not classified as program revenues, including all taxes, are presented
as general revenues.
Fund Financial Statements: The fund financial statements provide information about the
Town's funds. Separate statements for each fund category—governmental and proprietary
—are presented. The emphasis of fund financial statements is on major governmental and
enterprise funds, each displayed in a separate column. A!I remaining governmental and
enterprise funds are aggregated and reported as non-major funds.
Proprietary fund operating revenues, such as charges for services, result from exchange
transactions associated with the principal activity of the fund. Exchange transactions are
those in which each party receives and gives up essentially equal values. Non-operating
revenues, such as subsidies result from non-exchange transactions. Other non-operating
revenues are ancillary activities such as investment earnings.
36
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
The Town reports the following major governmental funds:
General Fund. The General Fund is the general operating fund of the Town. it is used to
account for all financial resources except those that are required to be accounted for in
another fund. The primary revenue sources are ad valorem taxes, federal and state grants,
and various other taxes and licenses. The primary expenditures are for general
govemment, public safety, public works, and cultural and recreational services.
ARP Fund.This fund is used to account for American Rescue Plan Coronavirus State and
Local Fiscal Recovery funds (ARP Funds) received by the Town and transfers made to
other funds for eligible expenditures.
The Town reports the following non-major governmental funds:
Emergency Telephone System Special Revenue Fund.This fund is used to account for
911 revenues received by the State 911 Board to enhance the State's 911 emergency
telephone system.
Law Enforcement Special Revenue Fund.This fund is used to account for drug forfeiture
revenues received by the State to enhance law enforcement efforts related to illegal drug
operations.
Employee Relief Fund.This fund is used to account for donations received after Hurricane
Matthew.
Disaster Relief Fund. This fund is used to account for the grant and insurance revenues
received after Hurricane Matthew that are restricted for use for a particular purpose.
Disaster Recovery Project Fund. This fund is used to account for disaster recovery funds
including Hazard Mitigation and Community Development 81ock Grants.
Essential Single-Family Rehabilitation Loan Pool Fund. This fund is used to account
for Essential Single-Family Rehabilitation Loan Pool Funds.
Parks and Recreation Trust Fund Grant Fund. This fund is used to account for Parks
and Recreation Trust Fund Grant Funds.
NC DOT CMAQ Fund. This fund is used to account for Pedestrian Connectivity Funds.
Grant Project Fund. This fund is used to account for activity related to an EPA program
to check previous industrial sites for contamination and mitigate those issues.
The Town reports the following major enterprise funds:
Electric Fund. This fund is used to account for the Town's electric operations.
Water and Sewer Fund. This fund is used to account for the Town's water and sewer
operations.
Solid Waste Fund. This fund is used to account for the Town's solid waste operations.
Stormwater Fund. This fund is used to account for the Town's storm water operations.
37
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
C. Measurement Focus and Basis of Accountinq
In accordance with North Carolina General Statutes, all funds of the Town are maintained
during the year using the modified accrual basis of accounting.
Government-wide and Proprietary Fund Financial Statements. The government-wide and
proprietary fund financial statements are reported using the economic resources
measurement focus. The government-wide and proprietary fund financial statements are
reported using the accrual basis of accounting. Revenues are recorded when earned and
expenses are recorded at the time liabilities are incurred, regardless of when the related
cash flows take place. Non-exchange transactions, in which the Town gives (or receives)
value without directly receiving (or giving)equal value in exchange, include property taxes,
grants, and donations. On an accrual basis, revenue from property taxes is recognized in
the fiscal year for which the taxes are levied. Revenue from grants and donations is
recognized in the fiscal year in which all eligibility requirements have been satisfied.
Amounts reported as program revenues include 1) 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 generai revenues rather than as program revenues. Likewise, general
revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating 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 are charges to customers
for sales and services. The Town also recognizes as operating revenue the portion of tap
fees intended to recover the cost of connecting new customers to the system. Operating
expenses for enterprise funds 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 non-operating revenues and expenses.
Governmental Fund Financial Statements. Governmental funds are reported using the
current financial resources measurement focus and the modified accrual basis of
accounting. Under this method, revenues are recognized when measurable and available.
Expenditures are recorded when the related fund liability is incurred, except for principal
and interest on general long-term debt, claims and judgments, and compensated
absences, which are recognized as expenditures to the extent they have matured. General
capital asset acquisitions are reported as expenditures in governmental funds. Issuance of
general long-term debt and acquisitions under capital leases are reported as other
financing sources.
The Town considers all revenues available if they are collected within 90 days after year-
end, except for property taxes. Ad valorem taxes receivable are not accrued as revenue
because the amount is not susceptible to accrual. At June 30, taxes receivable for property
other than motor vehicles are materially past due and are not considered to be an available
resource to finance the operations of the current year.Also,as of September 1, 2013, State
law altered the procedures for the assessment and collection of property taxes on
registered motor vehicles in North Carolina. Effective with this change in the law, the State
of North Carolina is responsible for billing and collecting the property taxes on registered
motor vehicles on behalf of all municipalities and special tax districts. Property taxes are
due when vehicles are registered. The billed taxes are applicable to the fiscal year in which
they are received. Uncollected taxes that were billed in periods prior to September 1, 2013
and for limited registration plates are shown as a receivable in these financial statements
and are offset by deferred inflows of resources.
38
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Sales taxes and certain intergovernmental revenues, such as the beer and wine tax,
collected and held by the State at year-end on behalf of the Town are recognized as
revenue. Sales taxes are considered a shared revenue for the Town because the tax is
levied by Edgecombe County and then remitted to and distributed by the State. Most
intergovernmental revenues and sales and services are not susceptible to accrual because
generally they are not measurable until received in cash. All taxes, including those
dedicated for specific purposes are reported as general revenues rather than program
revenues. Under the terms of grant agreements, the Town funds certain programs by a
combination of specific cost-reimbursement grants, categorical block grants, and general
revenues. Thus, when program expenses are incurred, there are both restricted and
unrestricted net position available to finance the program. It is the Town's policy to first
apply cost-reimbursement grant resources to such programs, followed by categorical block
grants, and then by general revenues.
D. Budqetary Data
The Town's budgets are adopted as required by the North Carolina General Statutes. An
annual budget is adopted for the General Fund, special revenue funds, and enterprise
funds. All annual appropriations lapse at the fiscal-year end. Project ordinances are
adopted for the Capital Projects Funds and the Enterprise Capital Projects Fund. The
enterprise fund projects are consolidated with their respective operating fund for reporting
purposes. All budgets are prepared using the modified accrual basis of accounting.
Expenditures may not legally exceed appropriations at the functional level for all annually
budgeted funds and at the project level for the multi-year funds. Budgetary control is
exercised in all funds. Appropriations are made at the departmental (functional) level and
can be amended as necessary by the governing board. The Town Manager is authorized
to transfer appropriations within a fund; however, any revisions that alter total expenditures
must be approved by the governing board. Budgeted amounts presented in the financial
statements rep�esent the amended budget ordinance as of June 30, 2022.
E. Assets, Liabilities, Deferred Outflows/Inflows of Resources, and Fund Equitv
1. Deposits and Investments
All deposits of the Town are made in Board-designated official depositories and are
secured as required by State law[G.S. 159-31].The Town may designate, as an official
depository, any bank or savings association whose principal office is located in North
Carolina. Also, the Town may establish time deposit accounts such as NOW and
SuperNOW accounts, money market aceounts, and certificates of deposit.
State law [G.S. 159-30(c)] authorizes the Town to invest in obligations of the United
States or obligations fully guaranteed both as to principal and interest by the United
States; obligations of the State of North Carolina; bonds and notes of any North
Carolina local government or public authority; obligations of certain non-guaranteed
federal agencies; certain high quality issues of commercial paper and bankers'
acceptances and the North Carolina Capital Management Trust(NCCMT).The Town's
investments are reported at fair value. The NCCMT Government Portfolio, which
consists of an SEC-registered mutual fund (the Government Portfolio), is authorized
by G.S. 159-30(c)(8). The Government Portfolio, which invests in treasuries and
government agencies, is a money market mutual fund (2a7) and maintains an AAAm
rating from S&P and AAAmf by Moody's Investor Service. It is reported at fair value.
Because the NCCMT Government Portfolio has a weighted average maturity of less
than 90 days, it is presented as an investment with a maturity of less than 6 months.
39
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
2. Cash and Cash Equivalents
The Town pools money from several funds to facilitate disbursement and investment
and to maximize investment income and considers ali cash and investments to be cash
and cash equivalents.
3. Restricted Assets
Customer deposits held by the Town before any services are supplied are restricted to
the service for which the deposit was collected. Powell Bill funds are classified as
restricted cash because it can be expended only for the purpose of maintaining,
repairing, constructing, reconstructing, or widening of local streets per G.S. 136-41.1
through 136-41.4.
4. Ad Valorem Taxes Receivable
In accordance with State law [G.S. 105-347 and G.S. 159-13(a)], the Town levies ad
valorem taxes on property other than motor vehicles on July 1st, the beginning of the
fiscal year. The taxes are due on September 1 st(lien date); however, interest does not
accrue until the following January 6th. These taxes are based on the assessed values
as of January 1, 2021.
5. Allowances for poubtfulAccounts
All receivables that historically experience uncollectible accounts are shown net of an
allowance for doubtful accounts.This amount is estimated by analyzing the percentage
of receivables that were written off in prior years.
6. Lease Receivable
The Town's lease receivable is measured at the present value of lease payments
expected to be received during the lease term. A deferred inflow of resources is
recorded for the lease. The deferred inflow of resources is recorded at the initiation of
the lease in an amount equal to the initial recording of the lease receivable. The
deferred inflow of resources is amortized on a straight-line bases over the term of the
lease.
7. Inventory and Prepaid Items
The inventories of the Town are valued at cost (first-in, first-out), which approximates
market. The Town's General Fund inventory consists of expendable supplies that are
recorded as expenditures as used rather than when purchased.
The inventories of the Town's enterprise funds consists of materials and supplies held
for subsequent use. The cost of these inventories is expensed 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
and expensed as the items are used.
8. Capital Assets
Capital assets are defined by the government as assets with an initial, individual cost
of more than a certain cost and an estimated useful life in excess of two years.
Minimum capitalization costs are as follows: Land, $5,000; Buildings, improvements,
40
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
substations, lines, and other plant and distribution systems, $5,000; infrastructure,
$5,000; furniture and equipment, $5,000; and vehicles, $5,000. Donated capital assets
received prior to June 30, 2015 are recorded at their estimated fair value at the date of
donation. Donated capital assets received after June 30, 2015 are recorded at
acquisition value.All other purchased or constructed capital assets are reported at cost
or estimated historical cost. General infrastructure assets acquired prior to July 1,
2003, consist of the road network and water and sewer assets that were acquired or
that received substantial improvements subsequent to July 1, 1980, and are reported
as estimated historical cost using deflated replacement cost. The cost of normal
maintenance and repairs that do not add to the value of the asset or materially extend
assets' lives are not capitalized.
Capital assets are depreciated using the straight-line method over the following useful
lives to the cost of the assets:
Asset Class Estimated Useful Lives
I nfrastructure 25-50
Buildings 50
I mprovements 30
Machinery and Equipment 5-10
Utility Work Vehicles 10
Passenger Vehicles 5
9. Deferred Outflows/lnflows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial statement
element, Deferred Outflows of Resources; represents a consumption of net position
that applies to a future period and so witl not be recognized as an expense or
expenditure untit then. The Town has two items that meet this criterion, pension
deferrals for the 2022 fiscal year and OPEB deferrals for the 2022 fiscal year. In
addition to liabilities, the statement of flnancial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, Deferred Inflows of Resources, represents an acquisition of net position that
applies to a future period and so will not be recognized as revenue until then.The Town
has several items that meet this criterion for this category — prepaid taxes, special
assessments, property taxes receivable, unearned grant revenues, lease receivables,
OPEB deferrals and pension deferrals.
10. Lonq-Term Obliqations
In the government-wide financial statements, and in the 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 Position. In the fund financial statements for
governmental fund types, the face amount of debt issued is reported as other financing
sources.
11. Compensated Absences
The vacation policy of the Town provides for the accumulation of earned vacation leave
with such leave being fully vested when earned. For employees hired on or after July
1, 2000, the maximum accumulation allowed is 240 hours (340 hours for fire fighters).
For employees hired before that date the maximum accumulation is 480 hours (680
hours for fire fighters). For the Town's government-wide and proprietary funds, an
41
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
expense and a liability for compensated absences and the salary-related payments are
recorded as the leave is earned. The portion of that time is estimated to be used in the
next fiscal year has been designated as a current liability in the government-wide
financial statements.
The Town's sick leave policy provides for an unlimited accumulation of eamed sick
leave. Sick leave does not vest, but any unused sick teave accumulated at the time of
retirement may be used in the determination of length of service for retirement benefit
purposes. Since the Town does not have an obligation for the accumulated sick leave
until it is actually taken, no accrual for sick leave has been made.
12. Net Position/Fund Balances
Net Position
Net position in government-wide and proprietary fund financial statements is classified
as net investment in capital assets; restricted; and unrestricted. Restricted net position
represents constraints on resources that are either externally imposed by creditors,
grantors, contributors, laws or regulations of other governments, or imposed by law
through State statutes.
Fund Balances
In the governmental fund financial statements, fund balance is composed of five
classifications desig_ned to disclose the hierarchy of constraints placed on how fund
balance can be spent.
The governmental fund types classify fund balances as follows:
Non-spendable Fund Balance — This classification includes amounts that cannot be
spent because they are either(a) not in spendable form or(b) legally or contractually
required to be maintained intact.
Inventories — portion of fund balance that is not an available resource because it
represents the year-end balance of ending inventories, which are not spendable
resources.
Prepaids — portion of fund balance that is not an available resource because it
represents certain payments to vendors applicable to future accounting periods
and is, therefore, not a spendable resource.
Restricted Fund Balance — This classification inciudes amounts that are restricted to
specific purposes externally imposed by creditors or imposed by law.
Restricted for Stabilization by State Statute— North Carolina G.S. 159-8 prohibits
units of government from budgeting or spending a portion of their fund balance.
This is one of several statutes enacted by the North Carolina State Legislature in
the 1930's that were designed to improve and maintain the fiscal health of local
government units. Restricted by State statute (RSS), is calculated at the end of
each fiscal year for all annually budgeted funds. The calculation in G.S. 159-8(a)
provides a formula for determining what portion of fund balance is available for
appropriation. 7he amount of fund balance not available for appropriation is what
is known as "restricted by State statute". Appropriafed fund balance in any fund
shall not exceed the sum of cash and investments minus the sum of liabilities,
encumbrances, and deferred revenues arising from cash receipts, as those figures
stand at the close of the fiscal year next preceding the budget. Per GASB
42
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
guidance, RSS is considered a resource upon which a restriction is "imposed by
law through constitutional provisions or enabling legislation." RSS is reduced by
inventories and prepaids as they are classified as non-spendable. Outstanding
Encumbrances are included within RSS. RSS is included as a component of
Restricted Net position and Restricted fund balance on the face of the balance
sheet.
Restricted for Streets — Powel Bill portion of fund balance that is restricted by
revenue source for street construction and maintenance expenditures. This
amount represents the balance of the total unexpended Powell Bill funds.
Restricted for Pubiic Safety — portion of fund balance that is restricted by revenue
source for certain emergency telephone system and law enforcement
expenditures.
Assigned Fund Balance—The portion of fund balance that the Town of Tarboro intends
to use for specific purposes. The Town's governing body has the authority to assign
fund balance to a speciflc purpose. The governing body authorizes the assignment of
fund balance by the approval of a budget appropriation.
Subsequent Year's Expenditures— portion of fund balance that is appropriated in
the next year's budget that is not already classified in restricted or committed.
Unassigned Fund Balance—The portion of fund balance that has not been restricted,
committed, or assigned to specific purposes or other funds. The General Fund is the
only fund that reports a positive Unassigned Fund Balance.
The Town has a revenue spending policy that provides guidance for programs with
multiple revenue sources. The Finance Director will use resources in the following
hierarchy: bond proceeds, federal funds, State funds, local non-Town funds, and Town
funds. For purposes of fund balance classification expenditures are to be spent from
restricted fund balance first, followed in order by committed fund balance, assigned
fund balance, and, lastly, unassigned fund balance. The Finance Director has the
authority to deviate from this policy if it is in the best interest of the Town.
13. Defined Benefit Cost-Sharinq Plans
For purposes of ineasuring the net pension liability, deferred outflows of resources and
deferred inflows of resources related to pensions, and pension expense, information
about the fiduciary net position of the Local Governmental Employees' Retirement
System(LGERS)and additions to/deductions from LGERS'fiduciary net position have
been determined on the same basis as they are reported by LGERS. For this purpose,
plan member contributions are recognized in the period in which the contributions are
due. The Town's employer contributions are recognized when due and the Town has
a legal requirement to provide the contributions. Benefits and refunds are recognized
when due and payable in accordance with the terms of LGERS. Investments are
reported at fair value.
F. Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those
estimates. Significant areas where estimates are made are allowance for doubtful accounts
and depreciation lives.
43
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Detail Notes on All Funds
A. Assets
1. Deposits
All the deposits of the Town are either insured or collateralized by using one of two
methods. Under the Dedicated Method, all deposits that exceed the federal depository
insurance coverage level are collateralized with securities held by the Town's agents
in the Town's name. Under the Pooling Method,which is a collateral pool, all uninsured
deposits are collateralized with securities held by the State Treasurer's agent in the
name of the State Treasurer. Since the State Treasurer is acting in a fiduciary capacity
for the Town, these deposits are considered to be held by the Town's agents in its
name. The amount of the pledged collateral is based on an approved averaging
method for non-interest bearing deposits and the actual current balance for interest-
bearing deposits. Depositories using the Pooling Method report to the State Treasurer
the adequacy of their pooled collateral covering uninsured deposits. The State
Treasurer does not confirm this information with the Town or the escrow agent.
Because of the inability to measure the exact amounts of collateral pledged for the
Town under the Pooling Method, the potential exists for under-collateralization. This
risk may increase in periods of high cash flows. However, the State Treasurer of North
Carolina enforces strict standards of financial stability for each depository that
collateralizes public deposits under the Pooling Method. The Town has adopted a
formal policy regarding custodial credit risk for deposits and also relies on the State
Treasurer to enforce standards of minimum capitalization for all pooling method
financial institutions and to monitor them for compliance. The Town complies with the
provisions of G.S. 159-31 when designating official depositories and verifying that
deposits are properly secured.
At June 30, 2022, the Town's deposits had a carrying amount of $6,048,054 and a
bank balance of $6,317,650. Of the bank balance, $500,000 was covered by federal
depository insurance, and the remainder was covered by collateral held under the
Pooling Method. At June 30, 2022 the Town's petty cash fund totaled $3,875.
2. Investments
At June 30, 2022, the Town's investment balances were as follows:
Valuation
Measurement Book Value
Investment b T e Method at 6/30/22 Maturit Ratin
NC Capital Management FairValue $15,199,267 N/A AAAm
Trust-Government Portfolio Level 1
All investments are measured using the market approach: using prices and other
relevant information generated by market transactions involving identical or
comparable assets or a group of assets.
Level of fair value hierarchy: Level 1: Debt securities are valued using directly
observable, quoted prices (unadjusted) in active markets for identical assets.
Interest Rate Risk. The Town has no formal investment policy regarding interest rate
risk. As a means of limiting its exposure to fair value losses arising from rising interest
rates, the Town's internal cash management plan limits at least half of the Town's
investment portfolio to maturities of less than 121 days.
44
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Credit Risk. The Town limits investments to provisions of G.S. 159-30 and restricts the
purchase of securities to the highest possible ratings whenever particular types of
securities are rated. State law limits investments in commercial paper to the top rating
issued by nationally recognized statistical rating organizations(NRSROs). The Town's
investments in the NC Capital Management Trust Government Portfolio carried a credit
rating of AAAm by Standard & Poor's and AAAm-mf by Moody's Investors Service as
of June 30, 2022.
3. Receivables -Allowances for poubtful Accounts
The amounts presented in the Balance Sheet and the Statement of Net Position for
the year ended June 30,2022 are net of the following allowances for doubtful accounts:
June 30, 2022
General Fund:
Taxes receivable $ 11,082
Accounts receivable 543,158
Total General Fund 554,240
Enterprise Fund:
Electric 131,519
Water and Sewer Fund 10,834
Solid Waste Fund 3,353
Storm Water Fund 1,542
Total Enterprise Funds 147,248
Total Atlowance Doubtful Accounts $ 701,488
Due from other govemments consists of the following:
Local option sales tax $ 831,880
Sales taxes 206,231
Video programming 37,300
Franchise taxes 215,752
Grants 444,692
911 charges 7,615
Miscellaneous 6,405
$ 1,749,875
45
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Lease Receivabfe
In January 2022, the Town entered into a lease to rent 62 acres of land for $120 per
acre for year for a period of three years with rent paid annually to the Town. The lease
receivable is measured at the present value of the future minimum lease payments
expected to be received during the term of the lease at a discount rate of 4.0%which
is the Town's incremental borrowing rate. In fiscal year 2022 the Town recognized
$7,440 of lease revenue under the lease.
4. Capital Assets
Capital asset activity for the year ended June 30, 2022 was as follows:
Beginning Ending,
Balances Increases Decreases Balances
Governmental activities:
Capital assets not being depreciated
Land $ 1,919,�66 $ - $ - $ 1,919,166
Construction in Progress - 195,431 - 195,43'I
Total capital assets not being depreciated 1,919,�66 195,431 - 2,114,597
Capital assets being depreciated
Buildings&Improvements 10,502,5'12 235,597 - 10,738,109
Infrastructure-streets 50,967,258 �73,030 - 5'1,14Q288
Infrastructure-sidewalk 661,067 - - 661,067
Equipment 10,970,476 �87,721 103,430 11,054,767
Total capital assets being depreciated 73,'101,3'13 596,348 103,430 73,594,231
Less accumulated depreciation for
Buildings&Improvements 7,54�,587 255,862 - 7,797,449
Infrastructure-streets 47,506,857 623,934 - 48,'130,79'I
Infrastructure-sidewalk 554,600 4,452 - 559,052
Equipment 9,522,993 443,066 103,430 9,862,629
Total accumulated depreciation 65,126,037 1,327,314 103,430 66,349,921
Total capital assets being depreciated,net 7,975,276 7,244,3�0
Governmental activity capital assets,net $ 9,894,442 $ 9,358,907
Depreciation expense was charged to functions/programs of the primary government as
fol lows:
General go�nernment $ 19,995
Public safety 343,189
Transportation 825,753
Cultural and recreational 138,377
$ 1,327,314
46
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Beginning Ending
Business-type Activities: Balances Increases Decreases Balances
FJectric Fund
Capital assets not being depreciated:
Land $ 858,368 $ - $ - $ 858,368
Construction in progress - - - -
Total 858,368 - - 858,368
Capital assets being depreciated:
Substation,lines,&related equipment 53,282,824 222,683 - 53,505,507
Office&maintenance equipment 4,907,639 123,723 48,590 4,982,772
Total 58,190,463 346,406 48,590 58,488,279
Less accumulated depreciation:
Substation,lines,&related equipment 37,743,075 1,410,852 - 39,153,927
Office&maintenance equipment 3,848,758 209,266 48,590 4,009,434
Total 41,591,833 $ 1,620,118 $ 48,590 43;163,361
Total capital assets being depreciated,
net 16,598,630 15,324,918
Electric Fund capital assets,net $17,456,998 $16,183,286
Water 8 Sewer Fund
Capital assets not being depreciated:
Land $ 427,564 $ - $ - $ 427,564
Construction in progress - - - -
Total 427,564 - - 427,564
Capital assets being depreciated:
Plant&distribution system 37,881,391 66,847 - 37,948,238
Buildings 45,935 - - 45,935
Equipment 4,205,291 48,112 19,100 4,234,303
Total 42,132,617 114,959 19,100 42,228,476
Less accumulated depreciation:
Plant 8�distribution system 28,251,765 865,458 - 29,117,223
Buildings 191 2,297 - 2,488
Equipment 3,179,570 220,189 19,100 3,380,659
Total 31,431,526 $ 1,087,944 $ 19,100 32,500,370
Total capital assets being depreciated,
net 10,701,091 9,728,106
Water&Sewer Fund capital assets,net $��,�2g,655 $10,155,670
47
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Beginning Ending
Business-type Activities(continued): Balances Increases Decreases Balances
Solid Waste Fund
Capital assets being depreciated:
Buildings $ 43,324 $ - $ - $ 43,324
Maintenance equipment 1,199,458 - - 1,199,458
Total 1,242,782 - - 1,242,782
Less accumulated depreciation:
Buildings 20,808 2,072 22,880
Maintenanceequipment 1,056,666 22,125 1,078,791
Total 1,077,474 $ 24,197 $ - 1,101,671
Total capital assets being depreciated,net 165,308 141,111
Solid Waste Fund capital assets, net $ 165,308 $ 141,111
Stormuvater Fund
Capital assets not being depreciated:
Land $ - $ - $ - $ -
Construction in progress - - - -
Total - - - -
Capital assets being depreciated:
Buildings $ 131,358 $ 100,000 $ - $ 231,358
Maintenance equipment 239,039 48,203 - 287,242
Total 370,397 148,203 - 518,600
Less accumulated depreciation:
Buildings 16,180 12,504 28,684
Maintenance equipment 57,344 27,159 84,503
Total 73,524 $ 39,663 $ - 113,187
Total capital assets being depreciated, net 296,873 405,413
Stormwater Fund capital assets,net 296,873 405,413
Business-type activities capital assets, net $ 29,047,834 $ 26,885,480
48
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Liabilities
1. Pension Plan and Postemplovment Obliqations
a. Local Governmental Emplovees' Retirement Svstem
Plan Description. The Town of Tarboro is a participating employer in the statewide
Local Governmental Employees' Retirement System (LGERS), a cost-sharing
multiple-employer defined benefit pension plan administered by the State of North
Carolina. LGERS membership is comprised of general employees and local law
enforcement officers (LEOSs) of participating local governmental entities. Article 3 of
G.S. Chapter 128 assigns the authority to establish and amend benefit provisions to
the North Carolina General Assembly. Management of the plan is vested in the LGERS
Board of Trustees, which consists of 13 members — nine appointed by the Governor,
one appointed by the State Senate, one appointed by the State House of
Representatives, and the State Treasurer and State Superintendent, who serve as ex-
officio members. The Local Governmental Employees' Retirement System is included
in the Annual Comprehensive Financial Report for the State of North Carolina. The
State's Annual Comprehensive Financial Report includes financial statements and
required supplementary information for LGERS. That report may be obtained by writing
to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina
27699-1410, or by calling (919) 981-5454, or at www.osc.nc.yov.
Benefits Provided. LGERS provides retirement and survivor benefits. Retirement
benefits are determined as 1.85% of the member's average final compensation times
the member's years of creditable service. A member's average final compensation is
calculated as the average of a member's four highest consecutive years of
compensation. Plan members are eligible to retire with full retirement benefits at age
65 with 5 years of creditable service, at age 60 with 25 years of creditable service, or
at any age with 30 years of creditable service. Plan members are eligible to retire with
partial retirement benefits at age 50 with 20 years of creditable service or at age 60
with 5 years of creditable service (age 55 for firefighters). Survivor benefits are
available to eligible beneficiaries of inembers who die while in active service or within
180 days of their last day of service and who have either completed 20 years of
creditable service regardless of age (15 years of creditable service for firefighters and
rescue squad members who are killed in the line of duty)or have completed five years
of service and have reached age 60. Eligible beneficiaries may elect to receive a
monthly Survivor's Alternate Benefit for life or a return of the member's contributions.
The plan does not provide for automatic post-retirement benefit increases. Increases
are contingent upon actuarial gains of the plan.
LGERS plan members who are LEOs are eligible to retire with full retirement benefits
at age 55 with 5 years of creditable service as an officer, or at any age with 30 years
of creditable service. LEO plan members are eligible to retire with partial retirement
benefits at age 50 with 15 years of creditable service as an officer. Survivor benefits
are available to eligible beneficiaries of LEO members who die while in active service
or within 180 days of their last day of service and who also have either completed 20
years of creditable service regardless of age, or have completed 15 years of service
as a LEO and have reached age 50, or have completed 5 years of creditable service
as a LEO and have reached age 55, or have completed 15 years of creditable service
as a LEO if killed in the line of duty. Eligible beneficiaries may elect to receive monthly
Survivor's Alternate Benefit for life or a return of the member's contributions.
Contributions.Contribution provisions are established by General Statute 128-30 and
may be amended only by the North Carolina General Assembly. The Town employees
49
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30,2022
are required to contribute 6% of their compensation. Employer contributions are
actuarially determined and set annually by the LGERS Board of Trustees. The Town's
contractually required contribution rate for the year ended June 30, 2022 was 13.04%
of compensation for law enforcement officers and 12.14% for general employees and
firefighters, actuarially determined as an amount that, when combined with employee
contributions, is expected to finance the costs of benefits earned by employees during
the year. Contributions to the pension plan from the Town were $977,876 for the year
ended June 30, 2022.
Refunds of Contributions — Town employees who have terminated service as a
contributing member of LGERS, may file an application for a refund of their
contributions. By State law, refunds to member with at least 5 years of service include
4% interest. State law requires a 60 day waiting period after service termination before
the refund may be paid.The acceptance of the refund payment cancels the individual's
right to employer contributions or any other benefit provided by LGERS.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At June 30, 2022, the Town reported a liability of$1,822,679 for its proportionate share
of the net pension liability. The net pension liability was measured as of June 30, 2021.
The total pension liability used to calculate the net pension liability was determined by
an actuarial valuation as of December 31, 2020. The total pension liability was then
rolled forward to the measurement date of June 30, 2021, utilizing updated procedures
incorporating the actuarial assumptions. The Town's proportion of the net pension
Jiability was based on a projection of the Town's long-term share of future payroll
covered by the pension plan, relative to the projected future payroll covered by the
pension plan of all participating LGERS employers, actuarially determined.At June 30,
2021 (measurement date),the Town's proportion was.11885%,which was a decrease
of.01328% from its proportion measured as of June 30, 2020.
50
Town of Tarboro, North Carolina
Notes to the Financiai Statements
For the Fiscal Year Ended June 30, 2022
For the year ended June 30, 2022,the Town recognized pension expense of$698,148.
At June 30, 2022, the Town reported deferred outflows of resources and deferred
inflows of resources related to pension from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual
experience $ 579,860 $ -
Changes of assumptions 1,145,108 -
Net difference between projected and actual
eamings on pension plan in�estments - 2,604,061
Changes in proportion and differences between
employer contributions and proportionate share of
contributions 39,697 319,217
Employer contributions subsequent to the
measurement date 977,876 -
Total $ 2,742,541 $ 2,923,278
$977,876 reported as deferred outflows of resources related to pensions resulting from
Town contributions subsequent to the measurement date will be recognized as a
decrease of the net pension liability in the year ended June 30, 2022. Other amounts
reported as deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended June 30:
2023 (121,607)
2024 (267,271)
2025 (769,735)
$ (1,158,613)
Actuarial Assumptions.The total pension liability in the December 31, 2020 actuarial
valuation was determined using the following actuarial assumptions, applied to all
periods included in the measurement:
Inflation 3.0 percent
Salary increases 3.50 to 8.10 percent, inflation and
productivity factor
Investment rate of return 7.00 percent, net pension plan
investment expense, including inflation
The plan currently uses mortality tabies that vary by age, gender, employee group (i.e.
general, law enforcement officer) and health status (i.e. disabled and healthy). The
current mortality rates are based on published tables and based on studies that cover
significant portions of the U.S. population. The healthy mortality rates also contain a
provision to reflect future mortality improvements.
The actuarial assumptions used in the December 31, 2020 valuation were based on
the results of an actuarial experience study for the period January 1, 2010 through
December 31, 2014.
51
Town of Tarboro, North Caroiina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Future ad hoc COLA amounts are not considered to be substantively automatic and
are therefore not included in the measurement:
The projected long-term investment returns, and inflation assumptions are developed
through review of current and historical capital markets data, sel!-side investment
research, consultant whitepapers, and historical performance of investment strategies.
Fixed income return projections reflect current yield across the U.S. Treasury yield
curve and market expectations of forward yields projected and interpolated for muitiple
tenors and over multiple year horizons. Global public equity return projections are
established through analysis of the equity of risk premium and the fixed income return
projections. Other asset categories and strategies' return projections reflect the
foregoing and historical data analysis. These projections are combined to produce the
long-term expected rate of return by weighting the expected future real rates of return
by the target asset allocation percentage and by adding expected inflation. The target
allocation and best estimates of arithmetic real rates of return for each major asset
class as of June 30, 2020 are summarized in the following table:
Long-Term Expected Real
Asset Class Target Allocation Rate of Return
Fixed Income 29.0% 1.4%
Global Equity 42.0% 5.3%
Real Estate 8.0% 4.3%
Alternatives 8.0% 8.9%
Credit 7.0% 6.0%
Inflation Protection 6.0% 4.0%
Total 100%
The information above is based on 30 year expectations developed with the consulting
actuary for the 2020 asset, liability, and investment policy study for the North Carolina
Retirement Systems, including LGERS. The long-term nominal rates of return
underlying the real rates of return are arithmetic annualized figures. The real rates of
retum are calculated from nominal rates by multiplicatively subtracting a long-term
inflation assumption of 3.00%. All rates of return and inflation are annualized.
Discount rate. The discount rate used to measure the total pension liability was
6.50%. The projection of cash flows used to determine the discount rate assumed that
contributions from plan members wiil be made at the current contribution rate and that
contributions from employers will be made at statutorily required rates, actuarially
determined. Based on these assumptions, the pension plan's fiduciary net position was
projected to be available to make all projected future benefit payments of the current
plan members. Therefore, the long-term expected rate of return on pension plan
investments was applied to all periods of projected benefit payments to determine the
total pension liability.
52
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Sensitivity of the Town's proportionate share of the net pension liability to
changes in the discount rate. The following presents the Town's proportionate share
of the net pension asset calculated using the discount rate of 6.50 percent, as well as
what the Town's proportionate share of the net pension asset or net pension liability
would be if it were calculated using a discount rate that is one percentage point lower
(5.50 percent) or one percentage point higher(7.50 percent) than the current rate:
1% 1%
Decrease Discount Increase
(5.50%) Rate (6.50%) (7.50%)
Town's proportionate share
of the net pension liability
(asset) $7,075,488 $1,822,679 $(2,500,077)
Pension plan fiduciary net position: Detailed information about the pension plan's
fiduciary net position is available in the separately issued Annual Comprehensive
Financial Report for the State of North Carolina.
b. Law Enforcement Officers Special Separation Allowance
1. Plan Description. The Town of Tarboro administers a public employee retirement
system (the Separation Allowance), a single-employer defined benefit pension plan
that provides retirement benefits to the Town's qualified sworn law enforcement
officers under the age of 62 who have completed at least 30 years of creditable service
or have attained 55 years of age and have completed 5 or more years of creditable
service. The Separation Allowance is equal to 0.85 percent of the annual equivalent of
the base rate of compensation most recentiy applicable to the officer for each year of
creditable service. The retirement benefits are not subject to any increases in salary or
retirement allowances that may be authorized by the General Assembly. Article 12D of
G.S. Chapter 143 assigns the authority to establish and amend benefit provisions to
the North Carolina General Assembly.
All full time law enforcement officers of the Town are covered by the Separation
Allowance. At December 31, 2020, the Separation Allowance's membership consisted
of:
Inactive Members Currently Receiving Benefits 8
Active Members 29
Total 37
Summary of Significant Accounting Policies:
Basis of Accounting. The Town has chosen to fund the Separation Allowance on a
pay as you go basis. Pension expenditures are made from the General Fund, which is
maintained on the modified accrual basis of accounting. Benefits are recognized when
due and payable in accordance with the terms of the plan.
The Separation Allowance has no assets accumulated in a trust that meets the criteria
which are outlined in GASB 73.
53
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
2. Actuarial Assumptions
The entry age actuarial cost method was used in the December 31, 2020 valuation.
The total pension liability in the December 31, 2020 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the
measurement:
Inflation 2.5 percent
Salary increases 3.25 to 7.75 percent, inflation and
productivity factor
Discount rate 2.25 percent
The discount rate is based on the yield of the S&P Municipal Bond 20 Year High Grade
Rate Index as of December 31, 2020.
All mortality rates are projected from 2010 using generational improvement with Scale
MP-2019.
3. Contributions
The Town is required by Article 12D of G.S. Chapter 143 to provide these retirement
benefits and has chosen to fund the amounts necessary to cover the benefits earned
on a pay as you go basis through appropriations made in the General Fund operating
budget. There were no contributions made by employees. The Town's obligation to
contribute to this plan is established and may be amended by the North Carolina
General Assembly. The Town paid $144,983, as benefits came due for the reporting
period.
Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At June 30, 2022, the Town reported a total pension iiability of$1,857,307. The total
pension liability was measured as of December 31, 2021 based on a December 31,
2020 actuarial valuation. The total pension liability was then rolled forward to the
measurement date of December 31, 2021 utilizing update procedures incorporating
the actuarial assumptions. For the year ended June 30, 2022, the Town recognized
pension expense of$229,197.
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between e�ected and actual
e�erience $ 88,201 $ 21,755
Changes of assumptions 267,863 44,864
Town benefit payments and plan administrati�ne
e�enses made subsequent to the measurement
date 77,818 -
Total $ 433,882 $ 66,619
54
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
$77,818 paid as benefits came due subsequent to the measurement date have been
reported as deferred outflows of resources. Other amounts reported as deferred
outflows and deferred inflows of resources related to pensions will be recognized in
pension expense as follows:
Year ended June 30:
2023 $ 103,525
2024 95,466
2025 84,013
2026 6,441
$ 289,445
Sensitivity of the Town's total pension liability to changes in the discount rate.
The following represents the Town's total pension liability calculated using the discount
rate of 2.25 percent, as well as what the Town's total pension liability would be if it were
calculated using a discount rate that is 1-percentage-point lower (1.25 percent) or 1-
percentage-point higher(3.25 percent) than the current rate:
1% 1%
Decrease Discount Increase
(1.25%) Rate (2.25%) (3.25%)
Town's proportionate share
of the net pension liability
(asset) $1,992,203 $1,857,307 $1,734,223
Schedule of Changes in Total Pension Liability
Law Enforcement Officers'Special Separation Allowance
Total Pension Liability as of December 31, 2020 $ 1,940,264
Changes for the year:
Ser�ice Cost at end of year 77,064
Interest 36,220
Change in benefit terms -
Difference between expected and actual experience (27,207)
Changes of assumptions and other inputs (41,841)
Benefit payments (127,193)
Other -
Net changes $ (82,957)
Total Pension Liability as of December 31, 2021 $ 1,857,307
The plan currently uses mortality tables that vary by age, and health status (i.e.
disabled and healthy). The current mortality rates are based on published tables and
based on studies that cover significant portions of the U.S. population. The healthy
mortality rates also contain a provision to reflect future mortality improvements.
The actuarial assumptions used in the December 31, 2020 valuation were based on
the results of an actuarial experience study for the period January 1, 2015 through
December 31, 2019.
55
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Total Expense, Liabilities, and Deferred Outflows and Inflows of Resources
Related to Pensions
Following is information related to the proportionate share and pension expense for all
pension plans:
LGERS LEOSSA Total
Pension Expense $ 698,148 $ 229,197 $ 927,345
Pension Liability $ 1,822,679 $ 1,857,307 $ 3,679,986
Proportionate share of the net pension
liability .11885% N/A
Deferred Outflows of Resources
Differences between expected and
actual experience $ 579,864 $ 88,201 $ 668,061
Changesofassumptions $ 1,145,108 $ 267,863 $ 1,412,971
Changes in proportion and differences
between contributions and
proportionate share of contributions $ 39,697 $ - $ 39,697
Benefit payments and administrative
costs paid subsequent to the
measurement date $ 977,876 $ 77,818 $ 1,055,694
Deferred Inflows of Resources
Differences between expected and
actual experience $ - $ 21,755 $ 21,755
Changes of assumptions $ - $ 44,864 $ 44,864
Net difference between projected and
actual earning on plan investments $ 2,604,061 $ - $ 2,604,061
Changes in proportion and differences
Between contributions and
Proportionate share of contributions $ 319,217 $ - $ 319,217
c. Supplemental Retirement lncome Plan for Law Enforcement Officers
Plan Description. The Town contributes to the Supplemental Retirement Income Plan
(Plan), a defined contribution pension plan, administered by the Department of State
Treasurer and a Board of Trustees. The Plan provides retirement benefits to law
enforcement officers employed by the Town. Article 5 of G.S. Chapter 135 assigns the
authority to establish and amend benefit provisions to the North Carolina General
Assembly. The Supplemental Retirement Income Plan for Law Enforcement Officers
is included in the Annual Comprehensive Financial Report for the State of North
Carolina. The State's Annual Comprehensive Financial Report includes the pension
trust fund financial statements for the Internal Revenue Code Section 401(k) plan that
includes the Supplemental Retirement Income Plan for Law Enforcement Officers.
That report may be obtained by writing to the Office of the State Controller, 1410 Mail
Service Center, Raleigh, North Carolina 27699-1410, or by calling (919) 981-5454.
Funding Policy. Article 12E of G.S. Chapter 143 requires the Town to contribute each
month an amount equal to flve percent of each officer's salary, and all amounts
contributed are vested immediately. Also, the !aw enforcement officers may make
voluntary contributions to the plan. Contributions for the year ended June 30, 2022
were $195,891 which consisted of $83,036 from the Town and $22,855 from the law
enforcement officers.
56
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
d. Other Postemplovment Benefits
Healthcare Benefits
Plan Description. Under the terms of a Town resolution, the Town administers a single-
employer defined benefit Healthcare Benefits Plan (the HCB Plan). The Town Board
has the authority to establish and amend the benefit terms and financing requirements.
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB
Statement 75.
Benefits Provided. Prior to August 1, 2011, retirees qualified for benefits similar to
those of employees after a minimum of five years of creditable service with the Town.
The Town pays the full cost of coverage for employees' benefits through private
insurers and employees have the option of purchasing dependent coverage at the
Town's group rates. Employees hired on or after August 1, 2011 who retire with a
minimum of 20 years of creditable service also have the option of purchasing coverage
for themselves and dependents at the Town's group rate. Employees hired on or after
August 1, 2011 who retire with less than 20 years of service are not eligible for
postemployment coverage. Retirees who qualify for coverage receive the same
benefits as active employees. Coverage for al� retirees who are eligible for Medicare
will be transferred to a Medicare Supplemental plan after qualifying for Medicare. The
Town Council may amend the benefit provisions: A separate report was not issued for
the plan.
Membership of the HCB Plan consisted of the following at June 30, 2021, the date of
the latest actuarial valuation:
Law
General Enforcement
Employees Officers
Retirees and dependents receiving
benefits 75 14
Terminated plan members entitled to but
not yet receiving benefits - -
Active plan members 60 11
Total 135 25
Total OPEB Liabilitv
The Town's total OPEB liability of$26,437,672 was measured as of June 30,2021 and
was determined by an actuarial valuation as of that date.
Actuarial assumptions and other inputs. The total OPEB liability in the June 30, 2021
actuarial valuation was determined using the following actuarial assumptions and other
inputs, applied to all periods included in the measurement unless otherwise specified:
Inflation 2.5 percent
Salary increases 3.5 to 8.41 percent, including inflation
Discount rate 2.16 percent
Healthcare cost trend rates Pre-Medicare and Prescription — 7.00%
decreasing to 4.5% by 2031
Medicare and Prescription — 5.125%
decreasing to 4.5% by 2024
57
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
The discount rate is based on the yield of the S&P Municipal Bond 20 Year High Grade
Rate Index as of the measurement date.
Chanqes in the Total OPEB Liabilitv
Total OPE6
Liability
Total OPEB Liability as of June 30, 2021 $ 28,128,352
Changesforthe year:
Service cost 675,136
Interest 629,484
Changes of benefit terms -
Differences between expected and actual experience (3,442,303)
Changes in assumptions or other inputs 1,090,593
Benefit payments (643,590)
Other -
Net Changes $ (1,690,680)
Total OPEB Liability as of June 30, 2022 $ 26,437,672
Changes in assumptions and other inputs reflect a change in the discount rate from
2.21% to 2.16%.
Mortality rates were bas.ed on the MP-2019 Total Data Set for Healthy Annuitants
Mortality Table.
The actuarial assumptions used in the June 30, 2021 valuation were based on the
results of an actuarial experience study for the period January 2015 through December
2019.
Sensitivity of the total OPEB liability to changes in the discount rate. The following
presents the total OPEB liability of the Town, as well as what the Town's total OPEB
liability would be if it were calculated using a discount rate that is 1-percentage-point
lower (1.16 percent) or 1-percentage-point higher (3.16 percent) than the current
discount rate:
Current
1% Discount 1%
Decrease Rate (2.16%) Increase
Total OPEB Liability $31,920,829 $26,437,672 $22,228,860
Sensitivity of the total OPEB liability to changes in the healthcare cost trend rates. The
following presents the total OPEB liability of the Town, as well as what the Town's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are
1- percentage-point lower or 1-percentage-point higher than the current healthcare
cost trend rates:
1% 1%
Decrease Current Increase
Total OPEB Liability $22,017,295 $26,437,672 $32,240,768
58
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
OPEB Expense and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to OPEB
For the year ended June 30, 2022, the Town recognized OPEB expense of$877,095.
At June 30, 2022, the Town reported deferred outflows of resources and deferred
inflows of resources related to OPEB from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual
experience $ 4,654 $ 2,923,218
Changes ofassumptions 4,081,577 640,749
Town benefit payments and plan administrati�e
expenses made subsequent to the measurement
date 560,859 -
Total $ 4,647,090 $ 3,563,967
$560,859 reported as deferred outflows of resources related to OPEB resulting from
benefit payments made and administrative expenses incurred subsequent to the
measurement date will be recognized as a decrease of the total pension liability in the
year ended June 30, 2022. Other amounts reported as deferred +nflows of resources
related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2023 $ (177,554)
2024 201,628
2025 498,190
$ 522,264
2. Other Emplovment Benefits
The Town has also elected to provide death benefits to employees through the Death
Benefit Plan for members of the Local Governmental Employees' Retirement System
(Death Benefit Plan), a multiple-employer, State-administered, cost-sharing plan
funded on a one-year term cost basis. The beneficiaries of those employees who die
in active service after one year of contributing membership in the System, or who die
within 180 days after retirement or termination of service and have at least one year of
contributing membership service in the System at the time of death are eligible for
death benefits. Lump sum death benefit payments to beneficiaries are equal to the
employee's 12 highest months' salary in a row during the 24 months prior to the
employee's death, but the benefit may not exceed $50,000 or be less than $25,000.
Because all death benefit payments are made from the Death Benefit Plan and not by
the Town, the Town does not determine the number of eligible participants. The Town
has no liability beyond the payment of monthly contributions. The contributions to the
Death Benefit Plan cannot be separated between the post-employment benefit amount
and the other benefit amount. Contributions are determined as a percentage of monthly
payroll based upon rates established annually by the State. Separate rates are set for
employees not engaged in law enforcement and for law enforcement officers. The
Town considers these contributions to be immaterial.
59
Town of Tarboro, North Caroiina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
3. lnternal Revenue Code Section 457 Plans
The Town offers its employees two deferred compensation plans created in
accordance with Internal Revenue Code Section 457. The plans, available to all Town
employees, permit them to defer a portion of their salary until future years.The deferred
compensation is not available to employees until termination, retirement, death, or
unforeseeable emergency. The.Town has complied with changes in the laws, which
govern the Town's Deferred Compensation Plan, requiring all assets of the plan to be
held in a trust for the exclusive benefit of the participants and their beneficiaries. Total
contributions for the year ended June 30, 2022 were $33,098, which consisted of
$18,898 from the Town and $14,200 from employees.
4. Internal Revenue Code Section 401(k) Plan
The Town also offers its employees a deferred compensation plan created in
accordance with Internal Revenue Code Section 401(k). The plan is sponsored by the
State of North Carolina and is governed by the Department of State Treasurer and the
Plan's Board of Trustees. The Department and Board have contracted with Prudential
Retirement Services to be the plan administrator.
The plan is available to all Town employees. The plan permits the employees to defer
a portion of their salary until future years. The deferred compensation is not available
until termination, retirement, death, or financial hardships. Total contributions for the
year ended June 30, 2022 were$582,982,which consisted of$397,654 from the Town
and $185,328 from employees.
5. Deferred Outflows and Inflows of Resources
Deferred outflows of resources at year-end were comprised of the following:
Differences between expected and
actual experience (LGERS) $ 579,860
Changes of assumptions (LGERS) 1,145,108
Changes in proportion and differences
between contributions and
proportionate share of contributions(LGERS) 39,697
Contributions to the pension plan in
the current flscal year(LGERS) 977,876
Differences between expected and
actual experience (LEOSSA) 88,201
Changes in assumptions (LEOSSA) 267,863
Benefit payments and administrative costs paid
subsequent to the measurement date (LEOSSA) 77,818
Differences between expected and
actual experience (OPEB) 4,654
Changes of assumptions (OPEB) 4,081,577
Benefit payments and administrative costs paid
subsequent to measurement date (OPEB) 560,859
$ 7,823,513
60
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Deferred inflows of resources at year-end were comprised of the following:
Prepaid taxes (General Fund) $ 13,550 $ 13,550
Special assessments receivable (General Fund) - 93,144
Taxes receivable - 352,627
Unearned Grant Revenues 1,520,642 1,520,642
Unearned revenues 230,839 -
Lease receivable 14,033 14,033
Difference between expected and actual
experience (OPEB) 2,923,218 -
Changes in assumptions(OPEB) 640,749 -
Difference between expected and actual
experience (LEOSSA) 21,755 -
Changes in assumptions (LEOSSA) 44,864 -
Net difference between projected and actual
eamings on plan investments (LGERS) 2,604,061 -
Changes in proportion and differences
between contributions and proportionate
share of contributions (LGERS) 319,217 -
$ 8,332,928 $ 1,993,996
6. Risk Manaqement
The Town is exposed to various risks of loss related to torts; theft of, damage to, and
destruction of assets; errors and omissions; injuries to employees; and natural
disasters. The Town participates in three self-funded risk-financing pools administered
by the North Carolina League of Municipalities. Through these pools, the Town obtains
general liability and auto liability coverage of $1 million per occurrence, property
coverage up to the total insured values of the property policy, workers' compensaCion
coverage up to statutory limits, and employee health coverage. The liability and
property exposures are reinsured through commercial carriers for claims in excess of
retentions as selected by the Board of Trustees of the Plan each year. Stop loss
insurance is purchased by the Board of Trustees of the Plan to protect against large
medical claims that exceed certain dollar cost levels. Specific information on the limits
of the reinsurance, excess and stop loss policies purchased by the Board of Trustees
of the Plan can be obtained by contacting the Risk Management Services Department
of the NC League of Municipalities. The pools are audited annually by certified public
accountants, and the audited financial statements are available to the Town upon
request.
The Town continues to carry commercial insurance for public officials' liability and law
enforcement liability. Settled claims from all risks have not exceeded insurance
coverage in any of the last three fiscal years.
The Town carries flood insurance through the National Flood Insurance Plan (NFIP).
Because the Town is in an area of the State that has been mapped and designated an
"A" area (an area close to a river, lake, or stream) by the Federal Emergency
Management Agency, the Town is eligible to purchase coverage of $500,000 per
structure through the NFIP. The Town has total flood insurance coverage of
$2,500,000.
In accordance with G.S. 159-29, the Town's employees that have access to $100 or
more at any given time of the Town's funds are performance bonded through a
61
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
commercial surety bond. The Finance Officer and Tax Collector are each individually
bonded for$50,000.
7. Lonq-Term Obliqations
a. ARRA Revolvins� Loan
A Promissory Note in the amount of$146,765 was executed on January 6, 2010. The
Federal Revolving Loan is due in annual installments of$7,338 through May 2, 2030
at 0.00% interest. The balance of the revolving loan as of June 30, 2022 is $58,706.
Annual debt service payments are as follows:
Year Ending
June 30, Principal Interest
2023 $ 7,338 $ -
2024 7,338 -
2025 7,338 -
2026 7,338 -
20276 7,338 -
2028-2030 22,016 -
Total $ 58,706 $ -
b. DENR Revolvin� Loan
In March 2015, the Town entered into an agreement with the Department of
Environmental Quality — Division of Water Infrastructure under the Water Pollution
Control Revolving Fund program. Under the agreement, the original principal amount
of $937,750 is immediately reduced by 50% to $468,875. The agreement requires
annuai payments in the amount of $22,140 through May 2035 at 0.00% interest.
Annual debt service payments are as follows:
Year Ending
June 30, Principal Interest
2023 $ 22,140 $ -
2024 22,140 -
2025 22,140 -
2026 22,140 -
2027 22,140 -
2028-2032 110,699 -
2033-2035 66,420 -
Total $ 287,819 $ -
At June 30, 2022, the Town had a legal debt margin of$76,335,005.
62
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
c. Chanpes in Lonq-Term Liabilities
A summary of changes in long-term obligations follows:
Balance Balance Current
Governmental Activities: July 1,2021 Increases Decreases June 30,2022 Portion
Compensated absences $ 686,592 $ 489,547 $ 452,559 $ 723,580 $ 86,830
Netpension liability(LGERS) 2,786,300 - 1,600,187 1,186,113 -
Total pension liability(LEO) 1,940,264 - 82,957 1,857,307 -
Total OPEB liability 20,063,322 - 1,260,064 18,803,258 -
Total go�rnmental activities $25,476,478 $ 489,547 $ 3,395,767 $ 22,570,258 $ 86,830
Business-type Activities:
Electric Fund:
Compensated absences $ 128,543 $ 85,480 $ 87,103 $ 126,920 $ 15,230
Netpension liability{LGERS) 853,410 - 565,284 288,126 -
Total OPEB liability 3,974;153 - 222,493 3,751,660 -
Total ElectricFund $ 4,956,106 $ 85,480 $ 874,880 $ 4,166,706 $ 15,230
Water and Sewer Fund:
Compensated absences $ 94,822 $ 66,186 $ 57,057 $ 103,951 $ 12,474
ARRA Rewlving Loan 66,044 - 7,338 58,706 7,338
DENR Revolving Loan 309,959 - 22,140 287,819 22,140
Netpension liability(LGERS) 831,024 - 521,799 309,225 -
Total OPEB liability 3,876,695 - 208,123 3,668,572 -
Total Water and Sewer Func $ 5,178,544 $ 66,186 $ 816,457 $ 4,428,273 $ 41,952
Solid Waste Fund:
Compensated absences $ 20,454 $ 13,888 $ 8,671 $ 25,671 $ 3,081
Net pension liability(LGERS) 205,237 - 136,248 68,989 -
Total OPEB liability 214,182 - - 214,182 -
Total Solid Waste Fund $ 439,873 $ 13,888 $ 144,919 $ 308,842 $ 3,081
Stormwater Fund:
Compensated absences $ 16,155 $ 8,863 $ 11,428 $ 13,590 $ 1,631
Net pension liability(LGERS) 45,597 - 75,371 (29,774) -
Total Solid Waste Fund $ 61,752 $ 8,863 $ 86,799 $ (16,184) $ 1,631
Total Business-typeActivities $ 10,636,275 $ 174,417 $ 1,923,055 $ 8,887,637 $ 61,894
Compensated absences,total OPEB liability, and net pension liability for governmental
activities have typically been liquidated in the General Fund.
63
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
B. Inter-fund Balances and Activitv
Transfers to/from other funds at June 30, 2022, consist of the following:
From the Electric Fund to the General Fund $ 1,801,300
From the General Fund to the Parks and
Recreation Trust Grant Fund 76,048
Transfers are used to move unrestricted revenues to finance various programs that the
government must account for in other funds in accordance with budgetary authorizations,
including amounts provided matching funds for various grant programs.
Inter-fund Activity at June 30, 2022, consists of the following:
The General Fund was due $49,758 from the NCDOT CMAQ Fund, $719,302 from the
Disaster Recovery Fund, $80,478 from the ESFRLP19 Fund, and $27,533 from the Grant
Project Fund. The General Fund advanced funds to assist with routine start-up costs as
directed by the Town Council.
C. Fund Balance
The following schedule provides management and citizens with information on the portion
of General Fund balance that is available for appropriation:
Total Fund Balance -General Fund $ 6,238,916
Less restricted for:
Imentories 106,618
P repaids 49,668
Stabilization by State Statute 2,196,583
St reets 871,235
Subsequent years expenditures 636,429
Available Fund Balance $ 2,378,383
The Non-Major Governmental funds include three muiti-year project funds with deficit
fund balances as shown on page 77. The project ordinances for these funds authorize all
appropriations necessary for completion of these projects in subsequent years.
II. Jointiv Governed Orqanization
The Town, in conjunction with other local governments, is a member of the North Carolina Eastern
Municipal Agency (the Agency). The Agency was formed to enable municipalities that own electric
distribution systems to finance, construct, own, operate, and maintain generation and transmission
facilities. Each participating government appoints one commissioner to the Agency's governing
board.The 32 members,that receive power from the Agency, have signed power sales agreements
to purchase a specified shared of the power generated by the Agency. Except for the power sales
purchase requirements, no local government participant has any obligation, entitlement, or residual
interest. The Town's purchases of power for the year ended June 30, 2022 totaled $15,531,198.
The Town, in conjunction with 5 counties and other municipalities, established the Upper Coastal
Plain Council of Governments (Council). The participating governments established the council to
coordinate various funding received from federal and State agencies. Each participating
64
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
government appoints one member to the Council's governing board. The Town paid membership
fees of$4,951 to the Council during the fiscal year ended June 30, 2022.
Joint Ventures
The Town participates in two joint ventures with Edgecombe County (County) as follows: Tarboro-
Edgecombe Airport Authority and Edgecombe County Memorial Library.
Tarboro-Edgecombe Airport Authority
The Town, in conjunction with the County, participates in a regional airport. Each government
appoints three members to the seven-member board. The seventh member is jointly appointed by
both governments. The Airport is a joint venture esfablished to facilitate economic expansion within
the County and improve the quality of life for its citizens. The Airport has been in existence for
twenty-six years, but it is not self-sustaining. The Town has an ongoing financial responsibility for
the Airport to honor any deficiencies in the event that proceeds from other default remedies are
insufficient. The Town contributed $14,125 to the Airport during the fiscal year ended June 30,
2022. The government does not have any equity interest in the joint venture, so no equity interest
has been reflected in the financial statements at June 30, 2022. Complete financial statements for
the Airport Authority can be obtained from the Airport's administrative offices at 500 Main Street,
Tarboro, North Carolina 27886.
Edqecombe County Memorial Library,
The Town also participates in a joint venture to operate a regional library with the County. Each
government appoints three Board members to the six-member Board of the Library. The Town has
an ongoing financial responsibility for the joint venture because the Library's continued existence
depends on the participating governments' continued funding. None of the participating
governments have any equity interest in the Library, so no equity interest has been reflected in the
financial statements at June 30, 2022. In accordance with the intergovernmental agreement
between governments, the Town contributed $153,778 to the Library to supplement its activities
during the year ended June 30,2022. Complete financial statements for the Library can be obtained
from the Library's offices at 909 Main Street, Tarboro, North Carolina 27886.
III. Summary Disclosure of Siqnificant Continqencies
Federal and State Assisted Programs
The Town has received proceeds from several federal and State grants. Periodic audits of these
grants are required, and certain costs may be questioned as not being appropriate expenditures
under the grant agreements. Such audits could result in the refund of grant moneys to the grantor
agencies. Management believes that any required refunds will be immaterial. No provision has
been made in the accompanying financial statements for the refund of grant moneys.
IV. Subsequent Events
The Town has evaluated events from the date of the balance sheet through the date the report is
available to be issued which is the date of the independent auditors' report. The Town has not
evaluated subsequent events after that date. There were no subsequent events during this period
that require disclosure.
V. Related Partv Transactions
In accordance with NCGS 14-234, on December 12,2016,the Town Council of the Town of Tarboro
adopted a resolution authorizing the continuation of purchasing practices with Marrow-Pitt
65
Town of Tarboro, North Carolina
Notes to the Financial Statements
For the Fiscal Year Ended June 30, 2022
Hardware Co, Inc. by the Town, its manager, and staff. Marrow-Pitt Hardware Co, Inc. is owned by
the Mayor of the Town. The Town expended $35,103 as of June 30, 2022.
VI. Economic Development Incentive Aqreement
The Town of Tarboro entered into an Economic Development Incentive Agreement with LS Cable
& System USA and Sara Lee Frozen Bakery, under North Garolina General Statutes 158-7.1.
Under the Statute, counties and cities may grant appropriations to businesses to increase economic
development. In the agreement, the Town of Tarboro is to repay LS Cable&System USA and Sara
Lee Frozen Bakery 50% of its ad valorem tax base for the span of 10 years and 5 years,
respectively. For the fiscal year ended June 30, 2022, the Town appropriated $50,929 to LS Cable
& System USA and $31,303 to Sara Lee Frozen Bakery.
VII. Prior Period Adiustments
Governmental Activities
There was unrecorded local option sales tax revenue of$254,602 in the General Fund at June 30,
2021. The effect of this adjustment was to increase beginning fund balance/net position and
accounts receivable by this amount.
There were unrecorded invoices of$16,072 in the Essential Single-Family Rehabilitation Loan Pool
Fund at June 30, 2021. The effect of this adjustment was to increase prior period expenditures
and decrease beginning fund balance/net position by this amount.
There were unrecorded grant receivables totaling $287,651 in the disaster Recovery Project Fund
at June 30, 2021. In addition, there were unrecorded invoices in this fund of$25,000 at June 30,
2021. The effect of these adjustments was to inc�ease beginning fund balance/net position by
$262,651, increase beginning accounts receivable by $287,651 and decrease prior period
expenditures by $25,000.
The combined effect of these adjustments on the governmental funds increased beginning fund
balance/net position by $501,181, increase beginning accounts receivable by $542,253 and
increase prior period expenditures by $41,072.
In addition, there was contributed capital consisting of land of $9,973 and streets of $248,303
received in fiscal year 2021 that were not recorded in the prior financial statements. The effect of
this adjustment was to increase beginning non-current assets and net position (net investment in
capital assets) by $258,276.
The combined effect of these adjustments on the governmental funds increased beginning net
position by $759,457.
Proprietary Activities
There was adjustment to correct accounts receivable to actual at June 30, 2021 in the Electric Fund
which decreased beginning net position and accounts receivable by $658,820.
66
REQUIRED SUPPLEMENTAL FINANCIAL DATA
This section includes additional infarmation required by generaliy accepted accaunting principles.
Schedule of Changes in Tatal Pension Liability for the Law Enforcement Officers'
Speeial Separation Allowance
Schedule af Tota! Pension Liability as a Percentage of Cov�red Payroll for th� Law
Enforcement Officers'Special Separatian Altowance
Schedule of Prapartionate Share of the Net Pension Liability (Asset) for Lacal
Government Employees' Retirement System
Scheduie of Contributians far Locai Government Empioyees' Retirement System
Schedule of Changes in the Total OPEB Liability and Related Ratios
Town of Tarboro,North Carolina
Schedule of Changes in Total Pension Liabitity
Law Enforcement Officers'Special Separation AIlowance
Required Supplementary Information
For the Year Ended June 30,2022
2022 2021 2020 2019 2018 2017
Beginning balance $ 1,940,264 $ 1,479,477 $ 1,397,824 $ 1,371,809 $ 1,274,475 $ 1,276,518
Service cost 77,064 53,764 49,360 49,045 38,309 41,375
Interest on the total pension liability 36,220 46,321 48,992 41,937 47,354 44,462
Changes of benefit terms - - - - - -
Differences between expected and actual
experience in the measurement of the TPL (27,207) 76,044 49,080 69,602 41,364 -
Changes of assumptions or other inputs (41,841) 401,857 37,998 (45,212) 65,656 (25,697)
Benefit payments (127,193) (117,199) (iO3,777) (89,357) (95,349} (62,183)
Other changes - - - - - -
Ending balance ofthe total pension liability $ 1,857,307 $ 1,940,264 $ 1,479,477 $ 1,397,824 $ 1,371,809 $ 1,274,475
The amounts presented for each fiscal year were determined as of the prior year ending December 31.
Note:
The pension schedules in the required supplementary information are intended to show information for ten years. Additional information will be
displayed as it becomes available.
67
TOwn of Tarboro,North Carolina
Schedule of Total Pension Liabillity as a Percentage of Covered Payroll
Law Enforcement Officers'Special Separation Alfowance
Required Supplementary Information
For the Year Ended June 30,2022
2022 2021 2020 2079 2018 2077
Total pension liability $ 1,857,307 $ 1,940,264 $ 1,479,477 $ t,397,824 $ 1,371,809 $ 1,274,475
Covered-employee payroll $ 1,675,723 $ 1,707,886 $ 1,596,855 $ 1,472,463 $ 1,348,012 $ 1,440,83fi
Total pension liability as a percentage of
covered-employee payroll 110.84% 113.61% 92.65% 94.93% 101.77% 88.45%
The Town of Tarboro has no assets accumulated in a trust that meets the criteria in paragraph 4 of GASB 73 to pay related benefits.
Note:
The pension schedules in the required supplementary information are intended to show information for ten years.Additional information will be
displayed as it becomes available.
68
Town of Tarboro
Town of Tarboro's Proportionate Share of Net Pension Liability(Asset)
Required Supplementary Information
Last Nine Fiscal Years'
Local Govemment Employees'Retirement System
2022 2021 2020 2019 2018 2017 2016 2015 2014
Tarboro's proportion of the net pension liability(asset)(%) 0.11885% 0.13213% 0.12414% 0.12439% 0.11665% 0.11567% 0.12727% 0.12630% 0.12700%
Tarboro's proportion of the net pension liability(asset)($) S 1,822,679 $4,721,568 $3,390,167 $2,950,956 $ 1,782,090 $2,454,905 $ 571,181 $ (744,850) $ 1,530,838
Tarboro's covered payroll S 8,159,008 $8,329,532 $7,748,462 $7,714,482 $7,195,482 $6;733,997 $6,073,633 $5,896,667 $6,110,651
Tarboro's proportionate share of the net pension liabiliry
(asset)as a percentage of its covered payroll 22.34% 56.68% 43.75% 38.25% 34.77% 36.46% 9.40% (12.63%) 25.05%
Plan fiduciary net position as a percentage of the total pension
IiBbilily" 95.51% 88.61% 90.86% 91.63% 94.18% 91.47% 98.09% 102.64% 94.35%
•The amounts presented for each fiscal year were determined as of the prior fiscal year ending June 30.
"This will be the same percentage for all participant employers in the LGERS plan.
Note:
The pension schedules in the required supplementary information are intended to show information for ten years.Additional information will be displayed as it becomes available.
69
Town of Tarboro
Town of Tarboro's Cont�ibutions
Required Supplementary Information
Last Nine Fiscal Years'
Local Government Employees'Retirement System
2022 2021 2020 2019 2018 2017 2016 2015 2014
Contrectually required contribution $ 977,876 $ 813,391 $ 762,355 $ 616,588 $ 573,242 $ 537,323 $ 459,711 $ 437,582 $ 429,301
Contributions in relation to the contractually required contribution 977,876 813,391 762,355 616,588 573,242 537,323 459,711 437,582 429,301
Contribution deficiency(excess) $ - S - S - $ - $ - S - $ - $ - S -
Tarboro's covered payroll $ 8,485,843 $ 8,159,008 $ 8,329,532 $ 7,748,462 $ 7,714,482 $ 7,195,482 $ 6,733,997 $ 6,073,633 $ 5,896,667
Contributions as a percentage of covered payroll 11.52°/a 9.97% 9.15% 7.96% 7.43°� 7.47% 6.83% 720% 7.28%
Note:
The pension schedules in the required suppiementary information are intended to show information for ten years.Additional information will be displayed as it becomes available.
70
Town of Tarbo[o,North Carolina
Schedule of Changes in ToWI OPEB Liabitiry and Related Ratios
Required Supplementary Information
June 30,2022
ToWI OPEB Liability 2022 2021 2020 2019 2018
Service cost $ 675,136 $ 421,973 $ 521,000 $ 557,224 $ 639,330
Interest 629,484 754,071 844,897 791,569 716,306
Changes of benefit terms - 498,870 - - -
Differences between expected and actual experience (3,442,303) 7,966 (1,070,375) (11,553) (37,086)
Changes of assumptions 1,090,593 5,622,982 (310,407) (1,284,623) (2,344,207)
Benefit payments (643,590) (595,750) (567,759) (568,683) (506,103)
Net change in total OPEB liability (1,690,680) 6,710,112 (582,644) (516,066) (1,531,760)
Total OPEB liability-beginning 28,128,352 21,418,240 22,000,884 22,516,950 24,048,710
Total OPEB fiability-ending $26,437,672 $28,128,352 $21,418,240 $22,000,884 $22,516,950
Covered-Employee Payroll $ 3,796;405 $ 4,490,217 $ 4,490,217 $ 4,897,194 $ 4,897,194
Total OPEB Liability as a percentage
of covered-employee payroil 696.39% 626.44% 477.00% 449.25% 459.79%
Changes of assumptions:Changes of assumptions and other inputs reflect the effects of changes in the discount rate of each period.
The following are the discounYrates used in each period:
Fiscal Year Rate
2022 2.16%
2021 2.21%
2020 3.50%
2019 3.89%
2018 3.56%
71
MAJOR GOVERNMENTAL FUNDS
Town of Tarboro, North Carolina
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balances -Annual Budget and Actual
For the Year Ended June 30, 2027
Variance
Positive
Budget Actual (Negative)
Revenues:
Ad valorem taxes
Taxes $ - $ 3,831,482 $ -
Penalties and interest - 24,148 -
Total 3,882,250 3,855,630 (26,620)
Other taxes and licenses
Late listings - 5,484 -
Cable N franchise - 149,203 -
Rental vehicle tax - 9,327 -
Auto sticker fees - 46,157 -
Miscellaneous - 576 -
Total 234,500 210,747 (23,753)
Unrestricted intergovernmental
Local option sales tax - 3,175,792 -
Utility sales tax - 876,965 -
Beer and wine tax - 42,097 -
ABC profit distribution - 62,260 -
Total 3,740,000 4,157,114 417,114
Restricted intergovernmental
Powell Bill allocation - 336,148 -
Federal nutition program - 51,797 -
Federal aging program - 17,840 -
Other grants - 54,324 -
Total 413,440 460,109 46,669
Permits and fees
Building permits - 96,220 -
Fees - 25,842 -
Total 115,150 122,062 6,912
Sales and Services
Recreation department fees - 176,482 -
Sale of cemetary lots - 62,500 -
Rent revenue - 24,822 -
Total 218,000 263,804 45,804
Investment earnings 8,000 19,386 11,386
72 (continued)
Town of Tarboro, North Carolina
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balances -Annual Budget and Actual
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Miscellaneous
Sale of materials and property - 8,300 -
Other - 85,457 -
Total 73,445 93,757 20,312
Charges for Services
Electric - 312,500 -
Water and sewer - 187,500 -
Stormwater - 37,500 -
Solid waste - 15,000 -
Total 552,500 552,500 -
Total revenues 9,237,285 9,735,109 497,824
Expenditures:
General Government:
Governing Body
Salaries and employee benefits - 57,791 -
Operating expenditures - 18,161 -
Total 83,805 75,952 7,853
Administration
Salaries and employee benefits - 131,658 -
Operating expenditures - 690,373 -
Total 852,138 822,031 30,107
Elections
Operating expenditures 30,060 30,058 2
Finance -Accounting
Salaries and employee benefits - 62,430 -
Operating expenditures - 71,508 -
Total 159,586 133,938 25,648
Finance -Administration
Salaries and employee benefits - 56,780 -
Operating expenditures - 32,592 -
Total 101,065 89,372 11,693
Finance -Collections
Salaries and employee benefits - 75,427 -
Operating expenditures - 42,070 -
Total 129,280 117,497 11,783
73 (continued)
Tow.n of Tarboro, North Carolina
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balances -Annual Budget and Actual
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Technology
Operating expenditures - 228,754 -
CapitalOutlay - 7,670 -
Total 314,750 236,424 78,326
Garage
Salaries and employee benefits - 78,643 -
Operating expenditures - 29,025 -
Total 132,400 107,668 24,732
Buildings and Grounds
Salaries and employee benefits - 441,171 -
Operating expenditures - 258,020 -
Capital outlay - 111,320 -
Total 903,995 810,511 93,484
Planning and Economic Development
Salaries and employee benefits - 268,006
Operating expenditures - 79,032
Total 432,015 347,038 84,977
Public Works
Salaries and employee benefits - 91,938 -
Operating expenditures - 5,718 -
Total 104,120 97,656 6,464
Payments to Outside Agencies
Tarboro-Edgecombe Airport - 14,125 -
Edgecombe County Library - 153,778 -
Upper Coastal Plain COG - 4,951 -
Carolinas Gateway Partnership - 55,000 -
Total 228,228 227,854 374
Total general government 3,471,442 3,095,999 375,443
Public Safety:
Police
Salaries and employee benefits - 2,908,156 -
Operating expenditures - 338,756 -
Capital outlay - 45,308 -
Total 3,513,932 3,292,220 221,712
Fire
Salaries and employee benefits - 1,703,822 -
Operating expenditures - 182,660 -
CapitalOutlay - 185,344 -
Total 2,166,696 2,071,826 94,870
74 (continued)
Town of Tarboro, North Carolina
General Fund
Statement of Revenues, Expenditures, and
Changes in Fund Balances -Annual Budget and Actual
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Anima! Control
Salaries and employee benefits - 67,260 -
Operating expenditures - 16,420 -
Total 91,025 83,680 7,345
Total public safety 5,771,653 5,447,726 323,927
Transportation:
Streets and Highways
Salaries and employee benefits - 329,773 -
Operating expenditures - 424,009 -
Capital outlay - 200,331 -
Total transportation 1,155,000 954,113 200,887
Cultural and recreational:
Parks and Recreation
Salaries and employee benefits - 1,080,572 -
Operating expenditures - 565,032 -
Capital outlay - 46,376 -
Total cultural and recreational 1,899,854 1,691,980 207,874
Total expenditures 12,297,949 11,189,818 1,108,131
Revenues over(underj expenditures (3,060,664) (1,454,709) 1,605,955
Other financing sources (uses):
Appropriated fund balance 1,259,364 - (1,259,364)
Loss on sale of inventory - (694) (694)
Transfers to other funds - (76,048) (76,048)
Transfers from other funds 1,801,300 1,801,300 -
Total other financing sources (uses) 3,060,664 1,724,558 (1,336,106)
Revenues and other financing sources
over expenditures and other
financing uses $ - 269,849 $ 269,849
Fund balance, beginning (as originally stated) 5,714,465
Prior period adjustment 254,602
Fund balance, beginning (as restated) 5,969,067
Fund balance, ending $ 6,238,916
75 (continued)
Town of Tarboro, North Carolina
ARP Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Project Prior Current Project
Authorization Years Year To Date Variance
Revenues:
Restricted intergovernmental $ 3,414,843 $ - $ 186,780 $ 186,780 $ (3,228,063)
Expenditures
Capital outlay 3,414,843 - 186,780 186,780 3,228,063
Revenues over expenditures $ - $ - - $ - $ -
Fund balance, beginning -
Fund balance, ending $ -
76
NON-MAJOR GUVERNMENTAL FUNDS
Town of Tarboro,North Carolina
Combining Balance Sheet
Non-Major Governmental Funds
For the Year Ended June 30,2022
Special Revenue Capital Projects
Essential
Emergency Disaster Single-Family Total
Telephone Law Employee Disaster Recovery Rehabilitation NC DOT Grant Non-Major
System Enforcement Relief Relief Project Loan Pool CMAQ Project Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Funds
Assets:
Cash and cash equivalents S 97,193 $ 58,728 $ 400 $ 391,885 $ - $ - $ - $ - $ 548,206
Accrued interest receivable 138 59 - - - - - - 197
Due from other governments 8,441 - - - 248,034 77,847 - 36,053 370,375
Total assets 105,772 58,787 400 391,885 248,034 77,847 - 36,053 918,778
Liabilities and Fund Balances:
Liabilities:
Accounts payable 10,486 - - - - 38,260 - 8,520 57,266
Due to other funds - - - - 719,302 80,478 49,758 27,533 877,071
Totalliabilities 10,486 - - - 719,302 118,738 49,758 36,053 934,337
Fund Balances
Restricted
Public safety 95,286 58,787 - - - - - - 154,073
Unassigned - - 400 391,885 (471,268) (40,891) (49,758) - (169,632)
Total fund balances 95,286 58,787 400 391,885 (471,268) (40,891) (49,758) - (15,559)
Total liabilities and
fund balances $ 105,772 $ 58,787 $ 400 $ 391,885 $ 248,034 $ 77,847 $ - $ 36,053 $ 918,778
77
Town oi Tarboro,North Carolina
Combining Statement oi Revenues,Expenditures,and Changes in Fund Balance
Non-Major Governmental Funds
For the Year Ended June 30,2022
Special Revenue Capital Projects
Essential
Emergency Disaster Single-Family Parks and Total
Telephone Law Employee Disaster Recovery Rehabflitation NC DOT Recreatfon Grant Non-Major
System Eniorcement Relief Relief Project Loan Pool CMAQ Trust Grant Project Govemmental
Fu�d Fund Fund Fund Fund Fund Fund Fund Fund Funds
Revenues
Restricted intergovemmental $ 91,381 $ 1,624 $ - $ - $ 418,954 $ 250,707 $ - $ - $ 36,053 $ 798,719
Miscellaneous revenues 42 - - - - - - - - 42
InvesUnent eamings 392 280 - - - - - - 672
Total revenues 91,815 1,904 - 418,954 250,707 - 36,053 799,433
Expenditures
General govemment - - - - 418,954 250,782 - - 36,053 705,789
Public safety 70,600 7,000 - - - - - - - 77,600
Capital outlay - - - - - 8,651 - - 8,651
Total expenditures 70,600 7,000 - - 418,954 250,782 8,651 - 36,053 792,040
Revenues over(under)expenses 21,215 (5,096) - - - (75) (8,651) - - 7,393
Other flna�cing sources:
Transferirom General Fund 76,048 76,048
Excess(deficiency)of revenues
and other financing sources
over(unde�)expenditures 21,215 (5,096) - - - (75) (8,651) 76,048 - 83,441
Fund balance,beginning(as originally stated) 74,071 63,883 400 391,885 (733,919) (24,744) (41,107) (76,048) - (345,579)
P�ior peYial adjustment - - - - 262,651 (76,072) - - - 246,579
Fund balance,beginning(as restated) 74,071 63,883 400 391,885 (471,268) (40,816) (41,107) (76,048) - (99,000)
Fund balance,ending $ 95,286 $ 58,787 $ 400 $ 391,885 $ (471,268) $ (40,891) $ (49,758) $ - $ - $ (15,559)
78
Town of Tarboro, North Carolina
Emergency Telephone System Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Budget Actual Variance
Revenues:
Restricted intergovemmental $ 91,380 $ 91,381 $ 1
Investment earnings 250 392 142
Miscellaneous revenues - 42 42
Total revenues 91,630 91,815 185
Expenditures
Public safety 91,630 70,600 21,030
Revenues over expenditures $ - 21,215 $ 21,215
Fund balance, beginning 74,071
Fund balance, ending $ 95,286
79
Town of Tarboro, North Carolina
Law Enforcement Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Budget Actual Variance
Revenues:
Restricted intergovernmental $ 1,350 $ 1,624 $ 274
Unrestricted Intergovernmental 2,500 - (2,500)
Investment earnings 150 280 130
Total revenues 4,000 1,904 (2,096)
Expenditures
Public safety 7,000 7,000 -
Revenues under expenditures (3,000) (5,096) (2,096)
Other financing sources:
Appropriated fund balance 3,000 - (3,000)
Deficiency of revenues and other
financing sources under expenditures $ - (5,096) $ (5,096)
Fund balance, beginning 63,883
Fund balance, ending $ 58,787
so
Town of Tarboro, North Carolina
Employee Relief Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Budget Actual Variance
Revenues:
Miscellaneous revenues $ - $ - $ -
Expenditures
General government - - -
Excess (deficiency) of revenues and other
financing sources over expenditures $ - - $ -
Fund balance, beginning 400
Fund balance, ending $ 400
81
Town of Tarboro, North Carolina
Disaster Relief Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Budget Actual Variance
Revenues:
Restricted intergovernmental $ 500,000 $ - $ (500,000)
Expenditures
General government 100,000 - 100,000
Electric 100,000 - 100,000
Water and Sewer 100,000 - 100,000
Solid Waste 100,000 - 100,000
Stormwater 100,000 - 100,000
Total expenditures 500,000 - 500,000
Revenues over(under) expenses $ - - $ -
Fund balance, beginning 391,885
Fund balance, ending $ 391,885
s2
Town of Tarboro, North Carolina
Disaster Recovery Project Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Project Prior Current Project
Authorization Years Year To Date Variance
Revenues:
Restricted intergovernmental $ 2,908,560 $ 622,005 $ 418,954 $ 1,040,959 $ (1,867,601)
Expenditures
HMGP -Acquisition 835,194 575,220 - 575,220 259,974
HMGP - Elevation 899,866 182,109 52,504 234,613 665,253
CDBG - NR 750,000 287,651 366,450 654,101 95,899
SARF 423,500 48,293 - 48,293 375,207
Total expenditures 2,908,560 1,093,273 418,954 1,512,227 1,396,333
Revenues under expenditures $ - $ (471,268) - $ (471,268) $ (471,268)
Fund balance, beginning (as originally stated) (733,919)
Prior period adjustment 262,651
Fund balance, beginning (as restated) $ (471,268)
Fund balance, ending $ (471,268)
83
Town of Tarboro, North Carolina
Essentiai Single-Family Rehabilitation Loan Pool Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Project Prior Current Project
Authorization Years Year To Date Variance
Revenues:
Restricted intergovernmental $ 1,519,625 $ 146,569 $ 250,707 $ 397,276 $(1,122,349)
Expenditures
Contracted Services 1,519,625 187,385 250,782 438,167 1,081,458
Revenues under expenses $ - $ (40;816) (75) $ (40,891) $ (40,891)
Fund balance, beginning (as originally stated) (24,744)
Prior period adjustment (16,072)
Fund balance, beginning (as restated) (40,816)
Fund balance, ending $ (40,891)
84
Town of Tarboro, North Carolina
NC DOT CMAQ Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actua(
For the Year Ended June 30, 2022
Project Prior Current Project
Authorization Years Year To Date Variance
Revenues:
Restricted intergovernmental $ 420,000 $ - $ - $ - $ {420,000)
Expenditures
Capital Outlay-Construction 525,000 41,107 8,651 49,758 475,242
Revenues over(under) expenses (105,000) (41,107) (8,651) (49,758} 55,242
Other financing sources (uses):
Transfer from General Fund 105,000 - - - (105,000)
Deficiency of revenues
and other financing sources
under expenditures $ - $ (41,107) (8,651) $ (49,758) $ (49,758)
Fund balance, beginning (41,107)
Fund balance, ending $ (49,758)
85
Town of Tarboro, North Carolina
Parks and Recreation Trust Grant Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Project Prior Current Project
Authorization Years Year To Date Variance
Revenues:
Restricted intergovernmental $ 80,000 $ 80,000 $ - $ 80,000 $ -
Expenditures
Capital Outlay-Construction 160,000 156,048 - 156,048 3,952
Revenues over(under) expenses (80,000) (76,048) - (76,048) 3,952
Other financing sources (uses):
Transfer from General Fund 80,000 - 76,048 76,048 (3,952)
Excess (deficiency) of revenues
and other financing sources
over(under) expenditures $ - $ (76,048) 76,048 $ - $ -
Fund balance, beginning (76,048)
Fund balance, ending $ -
86
Town of Tarboro, North Carolina
Grant Project Fund
Schedule of Revenues, Expenditures, and Changes in Fund Balance
Budget and Actual
For the Year Ended June 30, 2022
Project Prior Current Project
Authorization Years Year To Date Variance
Revenues:
Restricted intergovernmental $ 300,000 $ - $ 36,053 $ 36,053 $ (263,947)
Expenditures
Contracted Services 300,000 - 36,053 36,053 263,947
Revenues overexpenses $ - $ - - $ - $ -
Fund balance, beginning -
Fund balance, ending $ -
s�
ENTERPRISE FUNIIS
Town of Tarboro, North Carolina
Electric Fund
Schedule of Revenues and Expenditures
Budget and Actual (Non -GAAP)
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Revenues:
Operating revenues:
Electricity sales $21,861,293
Other operating revenues 1,043,893
Total operating revenues 23,754,500 22,905,186 (849,314)
Non-operating revenues:
Interest on investments 55,Z11
Sale of equipment and materia(s 51,131
Miscellaneous 5,089
Total non-operating revenues 89,000 111,931 22,931
Total revenues 23,843,500 23,017,117 (826,383)
Expenditures:
Administration and operations:
Salaries and employee benefits 2,323,763
Administration 866,407
Operations 606,822
Total administration and operations 3,694,000 3,796,992 (102,992)
Other operating expenditures:
Load management 167,000 186,819 (19,819)
Electrical power purchases 17,770,000 16,928,740 841,260
Capital outlay:
Distribution system 222,683
Equipment 123,723
Total capital outlay 504,700 346,406 158,294
Total expenditures 22,135,700 21,258,957 876,743
Revenues over expenditures 1,707,800 1,758,160 50,360
$$ (continued)
Town of Tarboro, North Carolina
Electric Fund
Schedule of Revenues and Expenditures
Budget and Actual (Norr-GAAP)
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Other financing sources (uses):
Capital Outlay Reserve Appropriation $ 93,500 $ - $ (93,500)
Transfer to the General Fund - PILOT (226,300) (226,300) -
Transfer to the General Fund (1,575,000) (1,575,000) -
Total other financing sources (uses) (1,707,800) (1;801,300) (93,500)
Revenues and other financing sources under
expenditures and other financing uses $ - (43,140) $ (43,140)
Reconciliation from budgetary basis (modified accrual)to fu11 accruaL•
Revenues and other financing sources under
expenditures and other financing uses (43,140)
Reconciling items:
Capital outlay 346,406
Depreciation (1,620,118)
Increase in deferred outflows of resources- pensions 49,614
Decrease in net pension liability 565,283
Increase in deferred inflows of resources-pensions (561,670)
Decrease in compensated absences 1,623
Net effect of OPEB liability (16,543)
Total reconciling items (1,235,405)
Net income (loss) $ (1,278,545)
89
Town of Tarboro, North Carolina
Water and Sewer Fund
Schedule of Revenues and Expenditures
Budget and Actual (Non -GAAP)
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Revenues:
Operating revenues:
Water and sewer sales $ 4,017,788
Water and sewer taps 39,694
Other operating revenues 53,224
Total operating revenues 4,559,500 4,110,706 (448,794)
Non-operating revenues:
Interest eamings 10,225
Miscellaneous 56,611
Total non-operating revenues 11,000 66,836 55,836
Total revenues 4,570,500 4,177,542 (392,958)
Expenditures:
Water and sewer administration:
Salaries and employee benefits 2,306,225
Professional services 11,023
Administration 543,848
Total water and sewer administration 3,111,800 2,861,096 250,704
Water treatment and distribution:
Utilities 133,756
Other operating expenditures 464,441
Total water treatment and distribution 691,470 598,197 93,273
Waste water collection and treatment:
Utilities 183,714
Other operating expenditures 332,198
Total waste water collection and treatment 711,311 515,912 195,399
Debt service:
Principal retirement 29,479 29,478 1
Capital outlay:
Equipment -
Water treatment -
Water distribution 40,910
Sewer treatment 74,049
Total capital outlay 840,085 114,959 725,126
Total expenditures 5,384,145 4,119,642 1,264,503
Revenues over(under)expenditures (813,645) 57,900 871,545
90 (continued)
Town of Tarboro, North Carolina
Water and Sewer Fund
Schedule of Revenues and Expenditures
Budget and Actual (Non -GAAP)
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Other financing sources:
Capital Outlay Reserve Appropriation $ 392,772 $ - $ (392,772)
Fund Balance Appropriated 420,873 - (420,873)
Total other financing sources 813,645 - (813,645)
Revenues and other sources over
expenditures $ - $ 57,900 $ 57,900
Reconciliation from budgetary basis (modified accrual)to full accrual:
Revenues and other sources over expenditures $ 57,900
Reconciling items:
Principal repayment on long-term debt 29,478
Capital outlay 114,959
Depreciation (1,087,844)
Increase in deferred outflows of resources -pensions 45,798
Decrease in net pension liability 521,800
Increase in deferred inflows of resources- pensions (518,466)
Increase in compensated absences (13,518)
Net effect of OPEB liability (28,542)
Total reconciling items (936,335)
Net income (loss) $ (878,435)
91
Town of Tarboro, North Carolina
Solid Waste Fund
Schedule of Revenues and Expenditures
Budget and Actual (Non -GAAP)
For the Year Ended June 30,2022
Variance
Positive
Budget Actual (Negative)
Revenues:
Operating revenues:
Solid waste collection &disposal charges $ 1,230,968
Other operating revenues 8,056
Total operating revenues 1,223,000 1,239,024 16,024
Non-operating revenues:
Interest earnings 2,212
Sale of equipment and materials 3,620
Totaf non-operating revenues 6,500 5,832 (668)
Total revenues 1,229,500 1,244,856 15,356
Expenditures:
Solid waste collection and disposal:
Salaries and employee benefits 606,212
Sanitary landfill fees 334,381
Administration 287,653
Total solid waste collection and disposai 1,319,500 1,228,246 91,254
Capital outlay 172,487 - 172,487
Total expenditures 1,491,987 1,228,246 263,741
Revenues over(under)expenditures (262,487) 16,610 279,097
Other financing sources:
Installment proceeds 160,000 - (160,000)
Capital outlay reserve appropriation 42,487 - (42,487)
Appropriated fund balance 60,000 - (60,000)
Total other financing sources 262,487 - (262,487)
Revenues and other financing sources
over expenditures $ - $ 16,610 $ 16,610
Reconciliation from budgetary basis(modified accrual)to full accruaL•
Revenues and other financing sources over expenditures $ 16,610
Reconciling items:
Depreciation (24,197)
Increase in deferred outflows of resources-pensions 11,958
Decrease in net pension liability 136,248
Increase in deferred inflows of resources-pensions (135,377)
Increase in compensated absences (5,217)
Decrease in deferred outflows of resources-OPEB (5,047)
Total reconciling items (21,632)
Net income(loss) $ (5,022)
92
Town of Tarboro, North Carolina
Stormwater Fund
Schedule of Revenues and Expenditures
Budget and Actual (Non -GAAP)
For the Year Ended June 30, 2022
Variance
Positive
Budget Actual (Negative)
Revenues:
Operating revenues:
Stormwater fee $ 565,865
Total operating revenues 562,000 565,865 3,865
Non-operating revenues:
Interest earnings 1,580
Other operating revenues 135
Total non-operating revenues 1,000 1,715 715
Total revenues 563,000 567,580 4,580
Expenditures:
Stormwater collection
Salaries and employee benefits 336,655
Administration 98,536
Total solid waste collection and disposal 475,850 435,191 40,659
Capital outlay 215,580 148,203 67,377
Total expenditures 691,430 583,394 108,036
Revenues over(under) expenditures (128,430) (15,814) 112,616
Other financing sources:
Appropriated fund balance 128,430 - (128,430)
Total other financing sources 128,430 - (128,430)
Revenues and other financing sources
under expenditures $ - $ (15,814) $ (15,814)
Reconciliation from budgetary basis (modified accrual)to full accrual:
Revenues and other financing sources under expenditures $ (15,814)
Reconciling items:
Capital outlay 148,203
Depreciation (39,664)
Decrease in compensated absences 2,419
Increase in deferred outflows of resources - pensions 6,615
Decrease in net pension liability 75,371
Increase in deferred inflows of resources- pensions (74,889)
Total reconciling items 118,055
Net income (loss) $ 102,241
93
OTHER SUPPLEMENTAL SCHEDULES
This section contains additional infarmation on cash balances and property taxes.
Town of Tarboro, North Carolina
General Fund
Schedule of Ad Valorem Taxes Receivable
June 30, 2022
Uncollected Uncollected
Fiscal Balance Collections Balance
Year July 1, 2021 Additions And Credits June 30, 2022
2021-2022 $ - $ 3,917,560 $ 3,744,750 $ 172,810
2020-2021 149,443 - 87,214 62,229
2019-2020 45,896 - 12,537 33,359
2018-2019 27,111 - 4,462 22,649
2017-2018 14,085 - 1,142 12,943
2016-2017 13,608 - 1,377 12,231
2015-2016 11,867 - 1,498 10,369
2014-2015 8,080 - 242 7,838
2013-2014 8,062 - 307 7,755
2012-2013 19,584 - 46 19,538
Prior years 43,435 - 2,477 40,958
$ 341,171 $ 3,917,560 $ 3,856,052 402,679
Less: allowance for uncollectible accounts
General Fund (11,082)
Ad valorem taxes receivable, net $ 391,597
Reconciliation with Revenues:
Ad valorem taxes:
General Fund $ 3,855,630
Reconciling items:
Adjustments 27,901
Interest (27,479)
Total reconciling items 422
Total coNections and credits 3,856,052
94
Town of Tarboro, North Carolina
Analysis of Current Tax Levy
Town -Wide Levy
For the Fiscal Year Ended June 30, 2022
Total Levy
Property
excluding
Town -Wide Registered Registered
Property Total Motor Motor
Valuation Rate Levy Vehicles Vehicles
Original levy:
Property taxed at current year's rate:
Real estate $ 591,988,049 0.41 $ 2,427,151 $ 2,427,151 $ -
Personal property 221,141,463 0.41 906,680 906,680 -
GAP Tax 5,391 5,391 -
Gross levy 813,129,512 3,339,222 3,339,222 -
Add:
Motor vehicles taxed at current
year's rate 101,475,854 0.41 416,051 - 416,051
Other afterlists (1) 39,582,195 0.41 162,287 162,287 -
Net levy $ 954,187,561 3,917,560 3,501;509 416,051
Uncollected taxes at June 30, 2022 127,737 126,765 972
Current year's taxes collected $ 3,789,823 $ 3,374,744 $415,079
Current levy collection percentage 96.74% 96.38% 99.77%
(1) Includes public service companies; also includes discoveries at varying tax rates.
95
STATISTICAL SCHEDUI.E
This part of the Town of Tarboro's Cotnprehensive Annual Financial Report presents detailed infarmation as a
context for understanding what the informatian in the financial statetnents, note disclosures, and required
supplementary inPormation says about the Town's overaIl financial hea]th.
Cantents Page
�inancial Trends 96
These schedules contain trend infarmation to help the reader understand haw the
Town's financiQt performance and well-being have changed over time.
Revenue Capacity 9�3
These schedules Gontain rnfc�rrriation that hetps the reader assess the Tcrwn`s rnost
signi�cant reuenue source,the propert,y tax.
Debt Capacity 107
This schedule presents information to help the reader assess the afforda6itity of
the Tawn's abiliry to issue debt in the future.
Demographic and Ecanomic Information 109
These schedules offer demographic and economic indicators tca help the readsr
understcrnd the enviranment withrn which the Town's frnancial actr`uitr`es take
place.
Operating Information 112
These schedules contain service and infrastructure data to hetp the reader
understar�d how the information irr the Town's firrancia!report relates to the
servlces the Tpwn provides and the actiuities it performs.
Sources: Unless atherwise noted, the informatian in these schecfules is cterived from the compreherrsrve annua! reports far the
Town of Tarboro,North Carolina
Net Position by Component
Last Ten Fiscal Years
(accrual basis of accounting)
[amounts expressed in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Governmental Activities
Net investment in capital assets 16,224 14,942 13,954 10,069 12,574 11,637 11,414 1Q755 9,636 9,359
Restricted 1,980 2,098 2,187 1,964 2,274 2,614 2,119 2,869 3,153 3,222
Unrestricted 1,641 766 275 3,106 1,968 (16,460) (16,383) (1'I,539) (18,472) (17,880)
Total governmental activities net position 19,845 17,806 16,416 15,139 12,880 (2,209) (2,850) (3,915) (5,683) (5,299Z
Business Type Activities
Net investment in capital assets 36,361 34,535 33,035 31,946 31,552 30,920 29,698 29,684 28,672 26,539
Restricted - - - 1,028 - - - - - -
Unrestricted 6,960 6,766 7,552 10,529 12,626 12,518 12,054 10,451 9,677 9,091
Total business-type activities net position 43,321 41,301 40,587 43,503 44,178 43,438 41,752 40,135 38,349 35,630
Primary Government
Net investment in capital assets 52,585 49,477 46,989 42,015 44,126 42,557 41,112 40,439 38,308 35,898
Restricted 1,980 2,098 2,187 2,992 2,274 2,614 2,119 2,869 3,153 3,222
Unrestricted 8,601 7,532 7,827 13,635 10,658 (3,942) (4,329) (7,088) (8,795) (8,789)
Total primary government net position 63,166 59,107 57,003 58,642 57,058 41,229 38,902 36.220 32,666 30,331
Note:
Beginning in 2013,the town began reporting net position rather than net assets,in conformity with GASB Statement 63.Prior to that time,net investment in capital assets was
labeled invested in capital assets,net of related debt.
96
Town of Tarboro,North Carolina
Changes in NetPosition
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2013 2014 2015 2016 2017 2018 2019 20Z0 2021 2022
Expenses
Governmental activities:
General Government 2,029 3,561 2,819 3,021 4,443 3,522 3,064 3,332 4,459 4,476
Public safety 3,969 4,503 4,309 4,354 4,458 4,630 4,698 5,620 6,007 5,636
Transportation 1,054 2,397 1,932 1,992 1,945 1,936 1,902 1,696 1,226 950
Cultural and recreation 2,418 1,173 1,115 1,287 1,368 1;365 1,153 1,654 1,708 1,886
Total governmental activities expenses 9,470 11,634 10,175 10,654 12,214 11,453 10,817 12,302 13,400 12,948
Business Type Activities
Water&Sewer 4,252 28,399 4,844 4,771 4,853 4,778 4,960 4,861 5,176 22,494
Electric 27,743 4,684 27,883 22,397 22,998 19,424 23,400 21,435 21,035 5,056
Solid Waste 975 875 920 976 1,102 1,127 1,366 1,246 1,208 1,250
Stormwater - - - - - 100 439 482 465
Total business-type activities expenses 32,970 33,958 33,647 28,144 28,953 25,329 29,826 27,981 27,901 29,265
Total primarygovernment expenses 42,44U 45,592 43,822 38,798 41,167 36,782 40,643 40,283 41,301 42,213
Program Revenues
Governmental activities:
Charges for services:
General Government 52 1,466 507 770 712 395 128 122 184 762
Public Safety 214 32 176 133 25 75 62 32 41 -
Transportation - - - - - - - -
Cultural and recreation 169 185 197 154 139 156 135 96 77 176
Operating Grants and Contributions 577 624 645 440 1,765 1,319 447 854 896 1,259
Capital Grants and Contributions - - - - - - - - 80 187
Total governmental activities program revenues 1,012 2,307 1,525 1,497 2,641 1,945 772 1,104 1,278 2,384
Business Type Activities:
Charges for services:
Electric 28,197 28,510 28,956 26,117 24,095 23,308 23,040 21,851 20,722 21,861
Water&Sewer 4,074 3,883 4,088 4,314 4,403 4,321 4,430 4,213 3,931 4,057
Solid Waste 1,005 1,019 1,023 1,036 1,029 1,081 1,093 1,081 1,098 1,231
Stormwater - - - - - - 574 567 566 566
Operating Grants and Contributions 177 131 67 - - - - - 1,208 1,106
Capital Grants and Contributions 1,390 - 381 627 1,031 888 277 - - -
Total business-type activities program revenues 34,843 33,543 34,515 32,094 30,558 29,598 29,414 27,712 27,525 28,821
Total primary government revenues 35,855 35,850 36,040 33,591 33,199 31,543 30,186 28,816 28,803 31,205
97
Town of Tarboro,North Carolina
Changes in NetPosition
Last Ten Fiscal Years
(accrual basis of accounting)
(amounts expressed in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Net(expense)/revenue
Governmental activities (8,458) (9,327) (8,650) (9,157) (9,573) (9,508) (10,045) (11,198) (12,122) (10,564)
Business-type activities 1,873 415 868 3,950 1,605 4,269 (412) (269� (376) (444)
Total primary government net expense 6,585 9,742 7,782 5,207 7,968 (5,239) (10,457) (11,467) (12,498) (11,008)
General Revenues and Other Changes in
Net Position
Governmental activities:
Taxes
Ad valorem taxes 3,822 3,373 3,805 3,691 3,581 3,666 3,455 3,878 3,895 3,914
Othertaxesandlicenses 271 287 234 206 239 226 394 205 203 211
Unrestricted intergovernmental 2,676 2,533 2,767 2,750 2,876 3,112 3,128 4,093 4,416 4,157
Unrestricted investment earnings 18 24 25 8 14 22 87 57 2 20
Miscellaneous 246 239 31 31 71 203 634 133 123 86
Transfers 1,186 1,195 1,222 1,195 1,100 1,074 1,706 1,768 1,715 1,801
Total governmental activities $219 7,651 8,084 7,881 7,881 8,303 9,404 10,134 10,354 10,189
Business Type Activities
Unrestricted investment earnings 21 18 14 10 25 49 299 219 12 70
Miscellaneous - - - - 41 95 148 93 292 116
Transfers 1,186 1,195 1,271 1,195 1,100 (1,074) (1,706) (1,768) (1,715) (1,801)
Total business-type activities (1,165) 1,177 1,257 1,185 1,034 (930) (1,259) (1,456) (1,411) (1,615)
Total primary government 7,054 6,474 6,827 6,696 6,847 7,373 8,145 8,678 8,943 8,574
Change in Net Position
GovernmentalActivities (938) (807) (1,242) (768) (1,276) (1,270) (641) (1,064) (1,768) (376)
Prior period adjustment-Governmental Activities - - (795) (624) - (989) - - - 759
Business-type activities (769) 696 (1,971) (318) 2,915 676 (1,671) (1,725) (1,787) (2,059)
Prior period adjustment-Business Type Activities - - - - - - - - - (659)
Total primary government (1,7p7) 111 (4,008) (1,710) 1,639 (1,583) (2,312) (2,789) (3,555) (2,335)
98
Town of Tarboro,North Carolina
Governmental Activities Tax Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Rental
Fiscal Property Franchise Vehicle Animal Privilege
Year Tax Tax Tax Tax License Total
2013 3,419 206 3 2 76 3,706
2014 3,938 206 2 1 24 4,171
2015 3,778 197 4 1 4 3,984
2016 3,761 180 6 2 - 3,949
2017 3,666 172 7 3 - 3,848
2018 3,699 164 6 1 - 3,870
2019 3,741 160 8 1 - 3,910
2020 3,834 155 7 1 - 3,997
2021 3,917 151 7 1 - 4,076
2022 3,856 149 9 - - 4,014
99
Town of Tarboro,North Carolina
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
General Fund
Non-Spendable 90 84 41 60 49 216 48 66 77 157
Restricted 1,898 1,969 2,065 1,793 1,999 2,422 2,014 2,453 2,623 3,068
Assigned 164 333 229 232 30 133 715 742 1,092 636
Unassigned 2,774 3,194 3,601 3,315 3,535 2,875 1,990 1,600 1,922 2,378
Total General Fund 4,926 5,580 5,936 5,400 5,613 5,646 4,767 4,861 5,714 6,239
All other governmental funds
Restricted - - - 172 276 193 105 416 530 154
Unassigned 82 130 84 (200) (130) 273 (86 719J 876 (170)
Total all other governmental funds 82 130 84 (28 146 466 19 (303) 346 16
100
Town of Tarboro,North Carolina
Changes in Fund Balances-Governmental Funds
Last Ten Fiscal Years
(modified accrual Basis of accounting)
(Amounts expressed in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Revenues
Taxes 3,706 4,172 3,984 4,000 3,893 3,917 4,135 4,039 4,095 4,067
Intergovernmental 3,110 3,392 3,395 3,425 4,877 4,502 3,615 4,506 4,839 5,602
Permits and fees 133 78 78 57 78 76 79 73 92 122
Sales and services 222 234 228 222 211 156 183 163 172 263
Investment earnings 24 25 8 14 22 65 87 57 2 20
Miscellaneous 239 31 32 139 177 92 247 138 129 94
Charges for services 1,325 1,417 476 601 613 395 419 443 553 553
Total general fund 8,759 9,349 8,201 8,458 9,871 9,203 8,765 9,419 9,882 10,721
Expenditures
General government 3,327 3,395 2,686 2,432 3,712 2,935 2,742 3,101 3,154 3,683
Public safety 3,972 4,217 4,439 4,115 4,360 4,648 4,763 5,067 5,053 5,295
Transportation 986 1,163 887 744 802 806 800 684 844 754
Culture and recreation 1,013 1,094 1,074 1,145 1,206 1,274 1,399 1,438 1,361 1,645
Economic Development - - - 163 - - - 1,125 404 -
Capital Projects - - - 1,608 478 856 2,093 - - 792
Total all other governmental funds 9,298 9,869 9,086 10,207 10,558 10,519 11,797 11,415 10,816 12,169
Excessofrevenues
over(under)expenditures (539) (520) (885) (1,750) (687) (1,316) (3,032) (1,996) (935) (1,448)
Other financing sources(uses)
Transfers in 1,195 1,222 1,195 1,100 1,074 1,670 1,706 1,768 1,715 1,877
Transfers out - - - - (76)
Total other financing sources(uses) 1,195 1,222 1,195 1,100 1,074 1,670 1,706 1,768 1,715 1,801
Net change in fund balances 656 702 310 (650) 387 354 (1,326) (228) 780 353
101
Town of Tarboro,North Carolina
General Governmental Revenues by Source (1)
Last Ten Fiscal Years
(modified accrual basis of accounting)
(amounts expressed in thousands)
Licenses,
Fiscal Property Permits Other Taxes Inter- Sales and Charge for
Year Tax and Fees and Licenses governmental Services Interest Services Other Total
2013 3,419 133 287 3,110 222 24 0 239 7,434
2014 3,938 78 234 3,391 235 25 1,417 30 9,348
2015 3,778 78 206 3,396 229 8 476 31 8,202
2016 3,761 57 239 3,425 222 14 601 139 8,458
2017 3,666 78 226 4,877 211 22 613 177 9,870
2018 3,699 76 218 4,502 156 65 395 92 9,203
2019 3,741 79 394 3,615 183 87 419 247 8,765
2020 3,834 73 205 4,067 163 56 443 138 8,979
2021 3,917 92 203 4,845 172 2 552 129 9,912
2022 3,856 122 211 5,602 263 20 553 94 10,721
(1) Includes General,Special Revenue,and Capital Projects Funds
102
Town of Tarboro,North Carolina
Assessed Value of Property
Last Ten Fiscal Years
(amounts expressed in thousands)
Assessed
Real Property Personal Public Total Total Direct Estimated Value as a
Fiscal Assessed Less Net Property Service Co. Assessed Tax Rate Actual Percentage of
Year Value Exem tions Value 1 Value 1 Value z Value Base Value Actual Value
2013 589,172 8,294 580,878 251,323 31,582 863,783 4.10 887,364 102J%
2014 5$6,222 4,568 581,654 291,456 27,750 900,860 4.10 925,453 102.7°/a
2015 594,371 8,262 586,109 276,448 23,829 886,386 4.10 919,625 103.8%
2016 595,048 8,079 586,969 287,513 25,396 899,878 4.10 924,985 102.8%
2017 596,111 8,221 587,890 184,851 24,702 797,443 4:10 797,602 100.0%
2018 586,119 7,757 578,362 205,668 23,735 807,765 4.10 807,765 100.0%
2019 589,274 7,188 582,086 209,843 32,729 824,658 4.10 830,760 1a0.7%
2020 591,317 7,441 583,876 208,765 39,077 831,718 4.10 831,718 100.0%
2021 592,367 7,401 584,966 224,732 39,174 848,872 4.10 841,232 99.1%
2022 599,172 7,184 591,988 221,141 39,242 852,371 4.10 797,393 93.6%
Note: Real property is revalued once every eight years;the last occurred in 2017.
1 Edgecombe Co.Tax Assessor for real and personal property value
z Public Service Co. NC Dept of Revenue
103
Town of Tarboro,North Carolina
Property Tax Rates
Direct and Overlapping Governments
Last Ten Fiscal Years
(rate per$100 of assessed value)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Direct:
Town of Tarboro 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41
Overlapping:
Edgecombe County 0.86 0.86 0.895 0.955 0.955 0.950 0.950 0.950 0.950 0.950
Source: North Carolina Department of Revenue;Property Tax Rates and Revaluation Schedules.
Property was revalued in 2017.
[Jote: Overlapping rates are those of local and county governments that apply to property owners within the
Town of Tarbora
104
Town of Tarboro,North Caroiina
Principal Property Taxpayers
)une 30,2022
Current Year and Nine Years Ago
(amounts expressed in thousands)
2021-2022 2011-2012
°/o of Total %of Total
Taxable Taxable Taxable Taxable
Assessed Assessed Assessed Assessed
Taxpayer Value Value Value Value
KSLB Holdings,LLC. 84,467 10.4%
Carolina System Technology,Inc 58,736 7.2% 65,853 8.5%
LS Cable&System USA,Inc. 36,908 4.5%
Air Systems Components LP 11,618 1.4% 8,848 1.1%
Wal-Mart Real Estate Business 8,860 1.1% 8,441 1.1%
Art Mortgage Borrower 8,663 1.1% 10,226 1.3%
EPC Trevi LLC 8,061 1.0%
Carolina System Technology,Inc 6,674 0.8%
Spin Master Inc 6,491 0.8%
Lowes Home Centers LLC 5,219 0.6% 10,112 1.3%
Kitchens of Sara Lee Corp 17,274 2.2%
Carolina Tel&Tel Company 20,116 2.6%
Sara Lee Bakery Co 49,166 6.4%
Superior Teletec,Inc 14,584 1.9%
Spongex,LLC 8,387 1.1%
235,697 28.9% 213,007 27.5%
Source: Town of Tarboro Tax Records
105
Town of Tarboro,North Carolina
Property Tax Levies and Collections(Z)
Last Ten Fiscal Years
(amounts expressed in thousands)
Fiscal Total Tax Collected within the
Year Levy for Fiscal Year of the Levy Collections in Total Collections to Date
Ended Percentage of Subsequent Percentage of
June 30 Fiscal Year Amount Levy Years Amount Levy
2013 3,589 3,410 95.0% 160 3,570 99.5%
2014 3,749 3,640 97.1% 102 3,742 99.8%
2015 3,674 3,587 97.6% 80 3,667 99.8%
2016 3,738 3,657 97.8% 71 3,728 99.7%
2017 3,682 3,597 97.7% 73 3,670 99.7%
2018 3,674 3,588 97.7% 72 3,660 99.6%
2019 3,790 3,662 96.6% 109 3,771 99.5%
2020 3,774 3,656 96.9% 92 3,748 99.3%
2021 3,933 3,823 97.2% 60 3,883 98.7%
2022 3,917 3,789 96.7% - 3,789 96.7%
Note: Includes ad valorem taxes,auto taxes and dog taxes,which are combined for billing
and collection purposes
106
Town of Tarboro,North Carolina
Ratios of Outstanding Debt By Type
Last Ten Fiscal Years
Business-type Activities
Fiscal Year Total
Ended June Governmtal lnstallment Revolving Primary Per
30 Activities Purchases Loans Government Customer Per Capita
2013 - - 124,751 124,751 20.62 11.03
2014 - 484,536 117,413 601,949 99.50 53.25
2015 - 724,091 578,950 1,303,041 221.04 116.72
2016 - 550,144 523,395 1,073,539 185.12 96.16
Z017 - 372,253 493,917 866,170 149.96 78.79
2018 - 190,330 464,439 654,769 111.05 60.31
2019 - 72,021 434,961 506,982 83.69 46.75
2020 - - 405,481 405,481 64.83 37.21
2021 - - 376,003 376,003 60.31 35.07
2022 - - 346,525 346,525 55.58 32.77
Note: Personal Income information is not available for the Town of Tarboro and is not an appropriate
denominator for the business-type activities.
See Operating Indicators by Function for Customer Data
See Demographic Statistics for population Data
107
Town of Tarboro,North Carolina
Legal Debt Margin Information
Last Ten Fiscal Years
(amounts expressed in thousands)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Assessed Value 863,956 856,854 886,386 900,878 885,449 885,114 910,844 919,365 951,270 954,188
Total net debt applicable to limit - - - - - - - - - -
NetAssessed Value 863,956 856,854 886,386 900,878 885,449 885,114 910,844 919,365 951,270 954,188
Total net debt applicable to the limit 0.00% 0.00% 0.00% 0.00% 0.00% 0,00% 0.00% 0.00% 0.00% 0.00%
as a percentage of debt limit
Legal Debt Margin Calculation for FY 2022
Assessed value 954,188
Debt limit(8%)of total assessed value) 76,335
Debtapplicable to limit:
General obligation bonds -
Less: Amount set aside for repayment of
general obligation debt -
Total net debt applicable to limit -
Legal debt margin 76,335
Note: Under state finance law,the Town of Tarboro's outstanding general obligation debt should not exceed 8 percent of total assessed property value.
By law,the general obligation debt subject to the limitation may be offset by amounts set aside for repaying general obligation bonds.
108
Town of Tarboro,North Carolina
Demographics Statistics
Last Ten Fiscal Years
Median
Fiscal Household Median School Unemployment
Year Population 2 Income 2 Age 2 Enrollment 1 Rate 2
2013 11,315 33,168 42.10 6,748 14.5%
2014 11,305 34,366 43.20 7,401 11.5%
2015 11,164 34,267 42.10 6,332 10.5%
2016 11,164 33,349 43.20 6,451 13.8%
2017 10,994 33,107 43.60 6,100 7.3%
2018 10,856 33,542 43.60 6,047 7.4%
2019 10,844 32,532 44.40 5,836 6.9%
2020 10,896 35,165 43.40 5,998 6.8%
2021 10,721 29,738 42.20 5,625 9.2%
2022 10,575 34,267 43.20 5,347 7.5%
1 Source; Edgecombe County Public Schools
2 Bureau of Labor Statistics-bls.gov
109
Town of Tarboro,North Carolina
Principal Employers
Current Year and Ten Years Ago
As of June 30,2022
2021-2022 2011-2012
Percentage of Percentage of
Number of Total Town Number of Total Town
Name of Employer Ranking Employees(1) Employment(1) Employees (1) Empioyees(1)
Edgecombe County Schools 1 950 10.41% 1,100 16.92%
Sara Lee Frozen Bakery 2 920 10.08% 800 12.31%
Edgecombe County 3 625 6.85% 650 10.00%
Vidant Hospital 4 610 6.68% 475 7.31%
Air System Components 5 430 4.71% 470 7.23%
Keihin CST 6 425 4.66% 400 6.15%
Corning Incorporated 7 380 4.16%
Edgecombe Community College 8 355 3.89%
Wal-mart Associates Inc. 9 250 2.74%
Food Lion 10 265 2.90%
Town of Tarboro 174 2.68%
Superior Telecommunications 260 4.00%
Barnhill Contracting 275 4.23%
Nomaco, [nc 150 2.31%
1 NC Department of Commerce
110
Town of Tarboro,North Carolina
Full-time Equivalent Town Government Employees by Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
General Government
Administration 3 3 3 3 3 3 3 3 3 3
Finance 8 8 8 8 9 8 8 8 8 8
Planning 2 2 2 2 3 3 3 4 4 4
Public Safety
Police
Officers 29 29 29 29 29 29 30 30 26 26
Civilians 6 6 6 6 6 6 6 6 6 5
Fire 22 22 22 22 22 22 22 22 22 22
Public Works
Administration 2 2 2 2 2 2 2 2 2 2
Buildings and Grounds 14 14 14 14 14 14 12 12 12 13
Animal Control 1 1 1 1 1 1 1 1 1 1
Engineering 2 2 2 2 2 2 2 0 0 0
Garage 4 4 4 h 4 4 4 4 4 4
Streets 12 12 12 12 12 12 10 10 10 11
Recreation 13 13 13 13 12 14 16 16 17 16
Water and Sewer 28 28 28 28 27 27 28 28 27 28
Electric 19 19 19 19 Z2 23 22 22 20 22
Solid Waste 9 9 9 9 9 9 9 9 9 9
Stormwater N A N A N A N A N A N/A 3 5 5 5
174 174 174 174 177 179 181 182 176 179
Source: Town of Tarboro payroll records.
111
Town of Tarboro,North Carolina
Operating Cndicators by Function
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
Police
Physical arrests 2,125 1,815 1,834 1,681 1,598 1,574 1,507 1,188 654 499
Parking violations 866 429 409 614 1,033 852 617 168 186 75
Traffic violations 3,146 3,706 3,430 4,184 3,904 4,661 4,184 1,834 1,453 992
Fire
Number of calls answered 319 316 316 308 333 374 322 301 313 350
Inspections 424 386 378 335 371 344 439 282"` 106* 236
Streets
Street resurfacing(miles) 5.19 - - 2,95 - - 2.89 2.89 2.89 3.50
Potholes repaired - 8 8 15 13 20 17 25 25 3U
Sanitation
Refuse collected (tons/day) 11.44 11.26 11.17 13.38 13.56 15.29 13.03 13.63 14.83 13.87
Recylables collected (tons/day) 0.58 0.66 0.65 0.55 0.55 0.69 0.55 0.49 0.19 0.18
Recreation
Gommunity Fitness memberships 1,20U 1,043 646 563 393 478 475 140 307 309
County Gym passes 65 38 62 56 48 - - - - -
Utility Funds-Combined
Total Customers 6,050 6,050 5,895 5,799 5,776 5,896 6,058 6,255 6,235 6,630
Water
New connections 9 3 8 16 17 16 33 40 16 18
Water main breaks 6 9 7 6 4 5 4 6 2 4
Average daily consumptions 2,920 2,730 2,847 2,880 2,723 2,690 2,407 3,166 2,063 2,045
(thousand of gallons)
Wastewater
Average daily sewage treatment 1,708 2,070 2,113 2,158 2,158 1,669 2,272 2,104 2,674 1,833
(thousand of gallons)
Sources: Various town departments
*Inspections were stopped in March 2020 due to COVID
*Inspections were limited due to COVID-2021
112
Town of Tarboro,North Carolina
Capital Asset Statistics by Funclion
Last Ten Fiscal Years
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function
Public Safety
Police:
Stations 1 1 1 1 1 1 1 1 1 1
Officers 29 29 28 28 29 29 30 30 26 26
K-9s 2 2 2 2 2 4 4 5 5 5
Fire Stations 2 2 2 2 2 2 2 2 2 2
Sanitation
Collection trucks 4 4 4 4 4 4 4 4 4 4
Streets
Street(miles) 96.0 96.0 96.0 96A 96.0 96.5 96.5 96.5 96.8 96.7
Street lights 1,438 1,438 1,438 1,438 1,438 1,438 1,481 1,501 1,525 1,537
Traffic signals 32 32 32 32 32 32 32 32 32 32
Recreation
Park acreage 273 273 273 273 273 273 273 273 273 273
Parks 11 10 10 10 10 10 10 9 9 9
Lakes 1 1 1 1 1 1 1 1 1 1
Swimming pools 2 2 2 2 2 2 2 2 *4 *4
Tennis courts 8 8 8 8 8 8 8 8 8 8
Community Centers 4 4 4 4 4 4 4 3 3 3
Museums/art centers 1 1 1 1 1 1 1 1 1 1
Ba11 Fie]ds 9 8 8 8 8 9 9 9 9 9
Water
Water mains(miles) 129.4 129.4 129.5 129.7 130.0 130.0 130A 130.0 130.0 130.0
Fire Hydrants 587 587 609 629 613 619 622 622 622 622
Maximum daily capacity
(thousands of gallons) 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000
Sewer
Sanitary sewers(miles) 90.4 90.4 93.0 93.5 93.0 93.0 93.0 93.0 93.0 93.0
Storm sewers(miles) 38.0 38.0 39.0 40.0 44.0 44.0 44.0 44.0 44.0 44.0
Maximum daily treatment capacity
(thousands of gallons) 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Electric
Number of Substations 5 5 5 5 5 5 5 5 5 5
Square miles of service lines 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5 11.5
Sources: Various town departments
*As classified by Edge Co Health Dept for inspection purposes(3 poots on l���te)
COMPLIANCE SECTIaN
;I- JoyCe and
Company,
CPA
Certified Public Accountants
104 Brady Court,Cary,North Carolina 27511
Phone 919-466-0946 Fax 919-466-0947
Report on lnternal Control over Financial Reporting and On Compliance and Other Matters
Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Slandards
To the Honorable Mayor and
Members of Town Council
Town of Tarboro,North Carolina
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States,the accompanying financial statements of the governmental activities,the business-
type activities, each major fund, and the aggregate remaining fund information of the Town of Tarboro,North
Carolina, as of and for the year ended June 30,2022, and the related notes to the financial statement, which
collectively comprises the Town of Tarboro's basic financial statements,and have issued our report thereon dated
December 21, 2022.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements,we considered the Town of Tarboro's internal
control over fmancial reporting(internal control)to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements,but not for the purpose of
expressing an opinion on the effectiveness of the Town of Tarboro's internal control. Accordingly,we do not
express an opinion on the effectiveness of the Town's internal control.
A deficiency in internal control exists when design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions,to prevent or detect and correct
misstatements on a timely basis. A material weakness is a deficiency,or a combination of deficiencies, in internal
control such that there is a reasonable possibility that a material misstatement of the entity's financial statements will
not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness,yet important enough to
merit attention by those charged with governance.
Our consideration of the internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in the internal contro]that might be
materia]weaknesses or significant deficiencies and therefore,material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies in
internal control that we consider to be materiai weaknesses. However, material weaknesses may exist that have not
been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Town of Tarboro's financial statements are free of
materia]misstatement,we performed tests of its compliance with certain provisions of laws,regulations,contracts
and grant agreements,noncompliance with which could have a direct and material effect on the determination of
financial statement amounts. However, providing an opinion on compliance with those provisions was not an
objective of our audit and,accordingly,we do not express such an opinion. The results of our tests disclosed no
instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
114
Meinbers:American Institute of Certified Public Accountants•North Carolina Association of Certified Public Accountants
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
result of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity's internal contro] and compliance. Accordingly,this communication is not
suitable for any other purpose.
,�,,,/�a.,., C PA-
J c and Company,CI'�
Cary,North Carolina
December 21,2022
115
;I- JoyCe and
Company,
CPA
Certified Public Accountants
104 Brady Court,Cary,North Carolina 27511
Phone 919-466-0946 Fax 919-466-0947
Report on Compliance for Each Major Federal Program;
Report on Internal Control Over Compliance: With OMB Uniform Guidance
and the State Single Audit Implementation Act
Independent Auditor's Report
To the Honorable Mayor and
Members of the Town Council
Town of Tarboro,North Carolina
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the Town of Tarboro,North Carolina, compliance with the types of compliance
requirements described in the OMB Complia»ce Supplement and the Audit Manual for Governmental
Auditors in North Carolina, issued by the Local Govemment Commission, that could have a direct and
material effect on each of the Town of Tarboro's major federal programs for the year ended June 30,
2022. The Town of Tarboro's major federal programs are identified in the summary of auditor's results
section of the accompanying schedule of findings and questioned costs.
In our opinion, the Town of Tarboro complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2022.
Basis jor Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with accordance with auditing standards generally
accepted in the United States of America; the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller General of the United States; and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards(Uniform Guidance)and the
State Single Audit Implementation Act. Our responsibilities under those standards and the Uniform
Guidance are further described in the Auditor's Responsibilities for the Audit of Compliance section of
our report.
We are required to be independent of the Town of Tarboro and to meet our other ethical responsibilities,
in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a reasonable basis for our opinion on
compliance for each major federal program. Our audit does not provide a legal determination of the
Town of Tarboro's compliance with the compliance requirements referred to above.
116
Members:American Institute of Certified Public Accountants•North Carolina Association of Certified Public Accountants
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes,regulations,rule and provisions of contracts or grant agreements applicable to the Town of
Tarboro's federal programs.
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred,whether due to fraud or error, and express an
opinion on the Town of Tarboro's compliance based on our audit. Reasonable assurance is a high level of
assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in
accordance with GAAS, Government Auditing Standards, and Uniform Guidance with always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions,misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material, if there is a substantial likelihood that, individually
or in the aggregate, it would influence the judgment made by a reasonable user of the report on
compliance about the Town of Tarboro's compliance with the requirements of each major federal
program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance,we
• exercise professional judgment and maintain professional skepticism throughout the audit
• identify and assess the risks of material noncompliance,whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining,on a
test basis, evidence regarding the Town of Tarboro's compliance with the compliance
requirements referred to above and performing such other procedures as we considered necessary
in the circumstances.
• obtain an understanding of the Town of Tarboro's internal control over compliance relevant to the
audit in order to design audit procedures that are appropriate in the circumstances and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for
the purpose of expressing an opinion on the effectiveness of the Town of Tarboro's internal
control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters,the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on Internal Control Over Compliance
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions,to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in
internal control over compliance is a deficiency, or combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
117
weakness in internal control over compliance,yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the
Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or significant
deficiencies or material weaknesses in internal control over compliance. Given these limitations, during
our audit,we did not identify any deficiencies in internal control over compliance that we consider to be
material weaknesses. However,material weaknesses or significant deficiencies may exist that were not
identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal
control over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
A,,v�( c�A�
J E AND COMPA , CPA
Cary,North Carolina
December 21, 2022
118
Town of Tarboro,North Carolina
Schedule ofFindings and Questioned Costs
For the year ended June 30,2022
Section I. Summary of Auditor's Results
Financial Statements
Type of auditor's report.issued; Unmodified
Internal control over financial reporting:
• Material weakness(es)identified? yes X no
• Significant deficiency(s)identified that are not
considered to be material weaknesses? yes X none reported
Noncompliance material to financial statement noted _ X yes no
Federal Awards
Internal control over major federal programs:
• Material weakness(es)identified? yes X no
• Significant deficiency(s) identified that are not
considered to be material weaknesses? yes X none reported
Any audit fmdings disclosed that are required to be reported in
accordance with 2 CFR 200.516(a)? yes X no
Identification of major federal programs
CFDA No(s) Names of Federal Pro�ram or Cluster
14.228 Community Development Block Grant Arogram—Neighborhood Revitalization
21.027 Coronavirus State and Local Fiscal Recovery
Type of auditor's report issued on compliance for major federal programs: Unmodified
Dollar threshold used to distinguish between Type A andType B Programs $750,000
Auditee qualified as a low-risk auditee yes X no
State Awards
The Town of Tarboro has no major state programs.
Section II. Financial Statement Findings
[tem 1 Delayed Audit Submission
Criteria An audit of the financial statements to be completed within 120 days after year-end per North
Carolina State General Statute G.S. 159,
Condition The Town did not have aud.itable financial statements available until after l20 days after year-end.
119
Effect Audit was unable to be completed within 120 days of fiscal year end due to financial statements
unready.
Cause The prior year audit was delayed causing delays in completing the current year audit.
Recommendation We recommend that the Town ensure that draft financial statements be made available to
auditors closer to year-end.
Views of responsible officials and planned corrective actions
The Town agrees with this finding.At this time,the Town has taken steps to ensure timely audit
submission including engaging with a new audit firm in the current fiscal year.
Section II1. Federal Award Findings and Questioned Costs
None reported
Section 1V. State Award Findings and Questioned Costs
None reported
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS:
None reported
120
TOWN OF TARBORO,NORTH CAROLINA
SCHEDULE OF EXPENDITURES OF FEDERAL AND STATE AWARDS
FOR THE YEAR ENDED JUNE 30,2023 � � .
� Federal State/ � � Federel(Direct 8 Pess-through
CFDA Pass-through Pess-through) Stete Locel to
Granror/Pass-throuah Granror/Program Title � Numb� Grantors No. Exoenditures ExoendiNres Expen it res $ubrecioients �
. Federel Grents . � �
Cesh Programs: � � �
U S Deoartment of Transoortation - -
Passed-through N.C.Department ot Transportation � . �
State and Community Highway Safety 20.600 N/A 10,381 - - -
U.S.Deoartment of Health and Human Services
Passed-through N.C.Dept.of Heal�b and Human Services
Nutrition Services Incentive Program 93A53 N/A 9,189 - � - -
Title III-Ct Congregate Meals 93.045 WA 24,059 9,823 3,765 -
Title III-B HCCBG-Access � 93.044 � N/A 6.080 2,646 969 -
Passed-through N.C.Dept.of Iresurance � � .
Medicare Improvements for Pauents and Providers Act 93_071 2001NCMISH-Ot 4,449 - - -
CDAP-State Health Insurance Assistance Program 93.324 90SAPG0099-02-00 3,854 - - .
United States Deoartment of Justice
Passed-through the N.C.Dept.of Public Safery
Edwerd Byrne Memorial Justice Assistance Grant Program 16.738 PROJ014848 24,100 - - -
Asset ForfeiWre and Money Laundering Section
Federal Equitable Sharing Program 76922 N/A 7,000 - - -
U S Deoanmern of Housing and Urban Develooment �
Passed-through N.C.Housing Finance Agency � �
Essential Single Family Rehab � 14239 M 16-SG370100 250J07 - - -
Passed-through N.C.Oepartment of Commerce�
CDBG � 14228 16-D-3027 � 366 a50 - - -
U.S.Department of Homeland Security
Passed-through N.C.Department ot Public Safery � �
Hazard Mitigation Grant Program-Elevation 97.039 4285-0.18-R 39,378 � 13,126 - -
1�.�.Environmental Protection Agency .
Brownfields Assessment and Cleanup � � 66.818 02D08921 36,053 � - -
U.S.Department of Treasury � .
Passed-through N.C.Pendemic Recovery .
Coronaviros State and Local Fiscal Recovery Funds . � �
(CSLFRF) 21.027 �NG0461 186.780-
Total Assistance-Federal Programs � � S 968.480 $ 25,595 $ 4,734 S.
State Grants:
Cesh Assistance: � � � �
N.C.Deoartment of Transoortation
Powell Bill Funds N/A 32570 - 324,752 - -
N.C.Deoartment of Health and Human Services �
Senior Center General Purpose Funding N/A � N/A - 9,537 3,179 -
N.C.Deoartment of Natural and Cultural Resources . .
Grassroots Art Program N/A PCP22-0053 16,440
Total State Assistance 5 968,480 $ 376,324 $ 7,913 S
Nofes to the Schedule of Exoenditures o(Federel and Sta�Fin nciel Awerd� �
Note 1: Besis of Presentation
The accompanying schedule of expenditures of federal and state awards(SEFSA)includes the federal and state grant aaivity of the Town of Tarboro under the programs
of the federal government and the State of North Carolina for the year ended June 30.2022. The information in this SEFSA is presented in accordance with the
requirements ot Title 2 US Code of Federal Regulations Part 200,Uniform Administrative Requirements,Cost Principles,and Audit Requirements for Federal Awards and
the State Single Audit Implementation AcL Because the Schedule presents only a selected portion of the operations of the Town of Tarboro,it is not intended to and does
not present the financial position,changes in net position,or cash Flows of the Town of Tarboro.
Note 2: Summery of Significent Accounting Policies � �
Expenditures reported in the SEFSA are�reported on the modifed accrual basis of accounting. Such expenditures are recognized following the cost principles contained
in Uniform Guidance,whgrein cerlain rypes of expenditures are not allowable or-are limited as to reimbursemenc The Town of Tarboro has elected not to use the 70
percent de minimis indirect cost rate as allowed under the Uniform Guidance. . .
121