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CITY OF CLEVELAND,TENNESSEE
ANNUAL COMPREHENSNE FINANCIAL REPORT
For the Year Ended June 30,2022
Prepared by:
Department of Finance
CITY OF CLEVELAND,TENNESSEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
YEAR ENDEI?JUNE 30,2022
TABLE OF CONT'ENTS
INTRODUCTORY SECTION
Pa�e
Letter of Transmittal i
GFOA Certificate of Achievement vii
City Officials viii
Organizational Chart ix
FINANCIAL SECTION
Independent Auditors'Report 1
Management Discussion and Analysis 4
Basic Financial Statements:
Government-wide Financial Statements:
Statement of Net Position 17
Statement of Activities 19
Fund Financial Statements:
Balance Sheet-Governmental Funds 20
Reconciliation of the Governmental Funds Balance Sheet
to the Statement of Net Position 21
Statement of Revenues,Expenditures and Changes in
Fund Balances-Governmental Funds 22
Reconciliation of the Statement of Revenues,Expenditures and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities _ 23
Statement of Revenues,Expenditures and Changes in
Fund Balance-Budget and Actual-General Fund 24
Statement of Revenues, Expenditures and Changes in
Fund Balance-Budget and Actual-School Fund 47
Statement of Net Position-Proprietary Funds 57
Statement of Revenues,Expenses and Changes in
Net Position-Proprietary Funds 58
Statement of Cash Flows-Proprietary Funds 59
Statement of Net Position-Fiduciary Fund-Other Post-Employment
Benefits Trust Fund-Cleveland Utilities 61
Statement of Changes in Net Position-Fiduciary Fund-Other
Post-Employment Benefits Trust Fund-Cleveland Utiliries 62
Notes to Financial Statements 63
Required Supplementary Information:
Schedule of Changes in Cleveland City's Net Pension Liability and
Related Ratios Based on Participation in the Public Employee Pension
Plan of TCRS 110
FINANCIAL SECTION-(Continued) Pa�e
Schedule of Cleveland City's Contributions Based on Participation in the
Public Employee Pension Plan of TCRS 112
Schedule of Changes in Cleveland City's Net Pension Liability and
Related Ratios Based on Participation in the Public Employee Pension
Plan of CSA 114
Schedule of Cleveland City's Contributions Based on Participation in the
Public Employee Pension Plan of CSA 116
Schedule of Cleveland City Schools'Proportionate Share of the Net Pension
Asset Teacher Legacy Pension Plan of TCRS 118
Schedule of Cleveland City Schools'Contributions Teacher Legacy
Pension Plan of TCRS 118
Schedule of Cleveland City Schools'Proportionate Shaze of the Net Pension �
Asset Teacher Retirement Plan of TCRS 120
Schedule of Cleveland City Schools'Contributions Teacher Retirement
Plan of TCRS 120
Schedule of Changes in Total OPEB Liability and Related Ratios-
Cleveland City Plan 122
Schedule of Changes in Total OPEB Liability and Related Ratios-
Cleveland Utilities 123
Schedule of Contributions Based on Participation in the OPEB Plan-
Cleveland Utilities 125
Schedule of Changes in Proportionate Share of Collective OPEB
Liability and Related Ratios-Cleveland City Schools TGOP Plan 127
Schedule of Changes in Proportionate Share of Collective OPEB
Liability and Related Ratios-Cleveland City Schools TNP Plan 128
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet-Nonmajor Governmental Funds 129
Combining Statement of Revenues,Expenditures and
Changes in Fund Balances-Nonmajor Governmental Funds 133
Schedules of Revenues,Expenditures and Changes in
Fund Balances-Budget and Actual:
State Street Aid Fund 137
Solid Waste Management Fund 138
School Federal Projects Fund 140
School Food Services Fund 141
Library Fund 142
Drug Enforcement Fund 143
Metropolitan Transportation Planning Organization Fund 144
Community Development Block Grant Fund 145
E-Ticketing Grant Fund 147
Byrne Memorial Justice Assistance Grant 148
Debt Service Fund 149
THDA Cleveland Home Grant 150
Sales Tax Capital Projects Fund 151
Blythe Sidewalks Diabetes Initiative ' 153
School Capital Improvement Projects Fund 154
American Rescue Plan Fund 155
Meiler Estate Animal Shelter Trust Fund 156
FINANCIAL SECTION-(Continned) Pa�e
Schedule of Revenues,Expenses and Changes in Net
Position-Budget and Actual-Capital Improvement Program Fund 157
Schedule of Revenues,Expenses and Changes in Net
Position-Budget and Actual-Health Insurance Trust Fund 160
Capital Assets Used in the Operation of Governmental Funds:
Comparative Schedule By Source 161
Schedule by Function and Activity 162
Schedule of Changes by Function and Activity 164
STATISTICAL SECTION Schedule Pa e
Net Assets by Component-Last Ten Fiscal Years 1 166
Change in Net Position-Last Ten Fiscal Years 2 168
Program Revenues by Function/Program-Last Ten Fiscal Years 3 170
Fund Balances,Governmental Funds-Last Ten Fiscal Years 4 172
Changes in Fund Balances,Governmental Funds-Last Ten Fiscal Years 5 174
Tax Revenues by Source,Governmental Funds-Last Ten Fiscal Years 6 176
Assessed and Estimated Actual Value of Real Taxable Property-
Last Ten Fiscal Years 7 177
Direct and Overlapping Property Tax Rates 8 179
Principal Property Taxpayers-Current Year and Nine Years Ago 9 181
Property Tax Levies and Collections-Last Ten Fiscal Years 10 182
Local Taxable Sales by Category-Last Ten Calendaz Years 11 183
Direct and Overlapping Sales Taac Ra.tes-Last Ten Fiscal Years 12 185
Local Sales Tax Revenue by Industry-Fiscal Years 2013 and 2022 13 186
Ratios of Outstanding Debt by Type-Last Ten Fiscal Years 14 188
Ratios of General Bonded Debt Outstanding-Last Ten Fiscal Years 15 190
Direct and Overlapping Governmental Activities Debt 16 191
Legal Debt Margin Information-Last Ten Fiscal Years 17 192
Revenue Bond Coverage Water and Wastewater Bonds-
Last Ten Fiscal Years 18 194
Demographic and Economic Staristics-Last Ten Calendar Years 19 195
Principal Employers-Current Year and Nine Years Ago 20 197
Full-Time-Equivalent City Government Employees by Function/Program-
Last Ten Fiscal Years 21 199
Operating Indicators by Function/Program-Last Ten Fiscal Years 22 200
Capital Asset Statistics by Function/Program-Last Ten Fiscal Years 23 204
OTHER INFORMATION Table
Insurance in Force-All Fund Types
Excluding Cleveland Utilities 1 205
Insurance in Force-Cleveland Utilities 2 206
Changes in Property Taxes Receivable 3 207
Uncolledted Delinquent Property Taxes Filed 4 208
Changes in Long-Term Debt by Issue 5 209
Bond Principal and Interest Requirements by 6 213
Fiscal Year for Governmental Activities
Note Principal and Interest Requirements by 7 215
Fiscal Year for Governmental Activities
Lease Principal and Interest Requirements by 8 217
Fiscal Year for Governmental Activities
Bond Principal and Interest Requirements by Fiscal 9 218
Year for Business-Type Activities
Note Principal and Interest Requirements by Fiscal 10 220
Year for Business-Type Activities
Lease Principal and Interest Requirements by 11 226
Fiscal Year for Business-Type Activities
Investments 12 227
Transfers 13 228
Surety Bonds of Principal Officials 14 229
Schedule of Cash Shortages and Other Thefts 15 230
SINGLE AUDIT SECTION
Schedule of Federal and State Financial Assistance Activity 231
Independent Auditors'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 239
Independent Auditors'Report on Compliance for Bach Major Federal
Program;Report on Intemal Control Over Compliance;and Report on the 241
Schedule of Expenditures of Federal Awards Required by Uniform Guidance
Schedule of Findings and Questioned Costs 244
Summary Schedule of Prior Audit Findings 246
Management's Corrective Action Plan 247
INTRODUCTORY SECTION
�� �����
�.�
Shawn McKay --•---�o'.__..-
Assistant City Manager/CFO `'�Q�' Municipal Building
smckay@clevelandtn.�ov �� � 190 Church Street, N.E.
Phone (423) 472.4551 CLEVELAND P.O. Box 1519
Fax(423) 559.3302 T E N N E 55 E E Cleveland, Tennessee 37364-1519
��.,�
January 27, 2023
Honorable Mayor,
Members of the City Council and
Citizens of the City of Cleveland, Tennessee
State law requires that all general-purpose local governments publish within six months of
the close of each fiscal year a complete set of financial statements presented in conformity
with generally accepted accounting principles (GAAP) and audit in accordance with
generally accepted auditing standards by a firm licensed certified public accountant.
Pursuant to that requirement, we hereby issue the annual comprehensive financial report
of the City of Cleveland for the fiscal year ended June 30, 2022.
This report consists of management's representations conceming the finances of the City
of Cleveland. Consequently,management assumes full responsibility for the completeness
and reliability of all the information presented in this report. To provide a reasonable basis
for making these representations, management of the City of Cleveland has established a
comprehensive intemal control framework that is designed both to protect the city's assets
from loss,theft,or misuse and to compile sufficient reliable information for the preparation
of the City of Cleveland's financial statements in conformity with GAAP. Because the
cost of internal controls should not outweigh its benefits, the City of Cleveland'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 City of Cleveland's financial statements have been audited by Wedgewood
Accounting, PLLC, a firm of licensed certified public accountants. The goal of the
independent audit was to provide reasonable assurance that the financial statements of the
City of Cleveland, 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
upon the audit,that there was a reasonable basis for rendering an unmodified opinion that
the City of Cleveland'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.
The independent audit of the financial statements of the City of Cleveland was part of a
broader, federally mandated"Single Audit" designed to meet the special needs of federal
grantor agencies. The standaxds governing Single Audit engagements require the
independent auditor to report not only on the fair presentation of the financial statements,
but also on the City of Cleveland's internal controls and compliance with legal
requirements, with special emphasis on internal controls and legal requirements involving
the administration of federal awaxds. These reports are located in the Single Audit Section
at the end of this Comprehensive Annual Financial Report.
GAAP require that management provide a narrative introduction, overview, and analysis
to accompany the basic financial sta.tements in the form of Management's Discussion and
Analysis (MD&A). This letter of transmittal is designed to complement the MD&A and
should be read in conjunction with it. The City of Cleveland's MD&A can be found
immediately following the report of the independent auditors.
PROFILE OF THE CITY OF CLEVELAND
The City of Cleveland, incorporated in 1903, is located in the southeastern corner of the
state. Cleveland has a highly diversified economy,being the fifth laxgest industrial city in
the state with fourteen Fortune 500 manufacturers and being a regional shopping
destination and health caxe provider for surrounding counties. Its proximity to the
mountains, whitewater rafting, and Cherokee Indian heritage is increasing the tourism
component of the economy.
The City of Cleveland operates under the council-manager form of government,
established by an amended Private Act Charter in 1993, following a referendum. Five
council-members are elected from districts, and the mayor and two council members are
elected at large. All elections are non-partisan, and the terms axe for four years, with half
the members elected every two years. Policy-making and legislative authority are vested
in the council. The council is responsible for, among other things, passing ordinances,
adopting the budget, appointing committees, hiring the city manager, and appointing the
city attorney and city judge. The city manager is responsible for carrying out the policies
and ordinances of the city council, overseeing the city's day-to-day operations, and
appointing the heads of the various departments.
The city provides a full range of services which include police and fire protection;
sanitation services; the construction and maintenance of highways, streets, and
infrastructure;recreational activities and cultural events. In addition to general government
activities, the governing body exercises, or has the authority to exercise, oversight of the
Utilities Department and the Cleveland City Schools; therefore, these activities are
included in the financial statements. However, the Cleveland Housing Authority, the
Bradley/Cleveland Industrial Development Boazd and the Health and Educational
Facilities Board have not met the established criteria for inclusion; and, accordingly, are
excluded from this report.
ll
The annual budget serves as the foundation for the City of Cleveland's fmancial planning
and control. All deparhnents of the city are required to submit capital requests by
December 31St and operating budget requests to the chief financial officer by March lst
each year. The chief financial o�cer makes revenue estimates for the upcoming fiscal
year. A budget work session is held in late March or early April,at which time depaxtment
heads and the city manager make presentations to the council. The chief financial officer
and city manager provide projections for the current fiscal yeax's budget and the coming
year's proposed operating budget for council review. In addition,the city manager presents
the council with his recommendation for a six-year capital improvements program based
upon the strategic planning session in January held by the city council, city manager, and
department heads. After much review and debate among the council,the budget is revised
to include any recommendations of the city council. A proposed budget is submitted to the
city council by the second council meeting in May. The council is required to hold public
hearings on the proposed budget and to adopt a final budget and tax rate by June 30�' each
year, which is the close of the city's fiscal year. The appropriated budget is prepared by
fund, function (e.g., public safety), and department (e.g., police). Departmental budget
officers,with approval of the department head and finance director,may make transfers of
appropriations within a department. However, transfers of appropriations between funds
require approval of the city council. Budget to actual compaxisons are provided in this
report for each individual governmental fund for which an appropriated annual budget has
been adopted. For the general fund, this comparison is presented on pages 24-46 as part
of the basic fmancial statements for the governmental funds. The school fund comparison
is presented on pages 47-56. For nonmajor governmental funds,with appropriated annual
budgets, this comparison is presented in the governmental fund subsection of this report,
which starts on page 137.
Factors Affecting Financial Condition
The information presented in the financial statements is perhaps best understood when it is
considered from the broader perspective of the specific environment within which the Ciiy
of Cleveland operates.
Local economy. The local economy has shown signs of sustaining economic growth for
the current year. The economic decline in previous yeaxs was not as drastic as many other
locations in the sta.te or nation because of the diverse economy and the proximity to several
large industrial construction projects.
In its 2022 edition of Best Places to Work in Manufacturing,Smart Asset ranked Cleveland
sixth out of 378 metropolitan areas, based on a series of inetrics including job growth,
income growth,percentage of manufacturirig jobs and housing affordability.
In Best PerForming Cities 2022 issued by the Milken Institute, Cleveland, Tennessee,was
ranked 82 of 201 metro axeas and raised in the ranks of j ob growth and wage growth
compared to the prior year study.
iii
The Chattanooga Times Free Press reported that Cleveland is the sixth highest metro axea
of Tennessee cities for influx of residential growth with 148 moving in to every 100 moving
out during a study during the first four months of 2022. A strong job market and low cost
of living retain the allure of the area that drives the population growth.
Data from the US Bureau of Labor Statistics reported that Cleveland has the highest job
growth percentage in Tennessee of 5.3% compared with 389 metropolitan areas while the
population size is ranked 318 of the 389 metro areas.
Cleveland's strong economy is evidenced by the following:
• A Knoxville developer is building a 100,000 sq. ft. industrial building in the Spring
Branch Industrial Park. This is the second site following the completion of Cannon
Automotive Solutions' manufacturing plant which began production this year. The
new site hopes to attract a tenant by the end of the year to expand axea
manufacturiiig jobs.
• Bradley County Schools repurposed the former American Uniform Building into
the Partnerships in Industry and Education(PIE) Center. The 271,000 sq. ft. center
ofFers Bradley County high school junior and seniors work study programs through
partnership with local business,industry, and community partners. STEM program
curriculum and on-site training will offer students instruction and skill development
in fields such as mechanics, culinary, and healthcare.
• Federal, state, and local officials attended a ribbon cutting to commemorate the
improvements on Parker Street. This area has brought together the City, Bradley
County, and Lee University with redesigns to the road lanes, sidewalks, and
pedestrian areas as well as the opening of the PIE Center and the Lee University
Ray Conn Multi Sports Complex.
• Annexations were approved including a large 238-acre tract neax Exit 20 off
Interstate 75 for potential residential development.
• Numerous restaurants were completed or are in the development process including
Cheddar's, Popeyes, and Champy's.
• Various commercial developments valued at $107.1 million have begun during
FY2022. This compares to $49.6 million in FY2021.New residential development
totaled $92.4 million compared to $45.0 million for FY2021.
iv
Long-term financial planning. On March 10, 2009, the voters approved an increase in
the local option sales tax rate from 2.25%to 2.75%, the highest rate allowed by state law.
The funds generated from the additional half cent rate increase,which became effective on
May 1 St,would be used for capital needs of the City and the City Schools. This additional
revenue has provided much needed funds to purchase equipment and provide paving in the
city. It has also funded improvements to the schools including repaying debt incurred for
constructing a science wing at Cleveland High School.
In cooperation with Bradley County, the City is funding the infrastructure development of
Spring Branch Industrial Park. Located at Exit 20 on Interstate 75,this 350-acre site will
accommodate approximately two million square feet of manufacturing/distribution
facilities. At full occupancy, the park is expected to generate approximately 5,500 direct
and indirect j obs with a payroll exceeding $190 million.
The Mayor Tom Rowland Interchange connected Cherokee Gateway to APD 40 and
Interstate 75. Reta.il development is expected on approximately 370 acres along this
corridor. The City anticipates 2,200 j obs will be created by this development with a payroll
of$59.6 million. T'he City is developing preliminary plans to connect the interchange with
state route 312.
Financial Policies
Revenue policies. The City will budget revenues conservatively so that the chance of a
revenue shortage during the year is remote. This also will help fmance contingencies and
budget amendments that were unforeseen when the Budget was first adopted. The City
will review annually a11 fees and charges to assure that they maintain their i.nflation-
adjusted purchasing power. Since different revenue sources impact classes of taxpayers
differently, the City Council recognizes that the only way to minimize these different
impacts is to have a diversified revenue system. These impacts will be considered in
making any needed adjustments to the various sources of revenue. The City will make
every effort to avoid becoming too dependent on one source of revenue in order to
minimize serious fluctuations in any year. The City will consider market rates and rates of
comparable cities in the region when changing tax rates, fees, and charges. In this regard,
the City will make every effort to ma.intain its favorable comparative position with other
Tennessee cities which has contributed to our economic development success.
Reserve fund policy. It is the policy of the City Council to maintain a reserve in the
various operating funds for the City. The reserves are maintained at a level that is sufficient
for temporary financing of unforeseen emergency needs and to continue orderly operations
during the months of July through December when cash inflows are less, because the
majority of property tax collections occur in January and February. The percentage is
calculated by taking fund balance or working capital as a percenta.ge of expenditures or
operating expenses and transfers to other funds. These reserves are reviewed annually by
the city manager and chief fmancial officer with the city council.
v
These policies along with Cleveland's budgetary flexibility and strong liquidity help
maintain a Standard and Poor's credit rating of AA and Moody's Investor Service credit
rating of Aa3 on issued debt.
Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a Certificate of
Achievement for Excellence in Financial Reporting to the City of Cleveland for its annual
comprehensive financial report(ACFR) for the fiscal year ended June 30, 2021. This was
the thirty-seventh year that the city has received this prestigious award. In order to be
awarded a Certificate of Achievement,the city published an easily readable and efficiently
organized ACFR. This report satisfied both GA.AP and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe that our
current ACFR continues to meet the Certificate of Achievement program's requirements
and we are submitting it to the GFOA to determine its eligibility for another certificate.
The preparation of this ACFR on a timely basis was made possible by the dedicated service
of the employees of the fmance department. We would like to express our appreciation to
all staff inembers who have assisted and conlributed to this report,in addition to the City's
independent certified public accountants. Credit must also be given to the mayor and city
council for their unfailing support for maintaining the highest standards of professionalism
in the management of the City of Cleveland's finances.
Respectfully submitted,
� /^^
���_� � � �V4�
Shawn McKay Joe Fivas
Assistant City Manager/Chief Financial Off'icer City Manager
vi
0
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Cleveland
Tennessee
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2021
������. P �.���,�c�t
Executive Director/CEO
vii
CITY OF CLEVELAND,TENNESSEE
ANNUAL COMPREHENSIVE FINANCIAL REPORT
CITY OFFICIALS
June 30,2022
Kevin Brooks
Mayor
Tom Cassada Councilman
William Estes Councilman
Dale Hughes Councilman
Avery Johnson, Sr. Councilman
David May,Jr. Councilman
Marsha McKenzie Councilwoman
Ken Webb Councilman
Joe Fivas City Manager
Shawn McKay,CMFO Assistant City Manager/Chief Financial Officer
Department Heads
Richard Banks City Judge
Russell Dyer,Ed.D. Director of Schools
Mark Fidler Jetport Manager
Robert Gaylor Fire Chief
Mark Gibson Chief of Police
Tim Henderson General Manager,Cleveland Utilities
Andrew Hunt Library Director
Jonathan Jobe Director of Development&Engineering Services
John Kimball City Attomey
Kim Miller Human Resources
Kris Miller Information Technology
Tommy Myers Public Works Director
Patti Petitt Parks and Recreation Director
viii
City of Cleveland Organizational Chart
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FINANCIAL SECTION
VVEDGF_�VOOD ACCOUNTING, PLLC
CEK"I'IFIED PLiBLIC ACCOUNTANI'S
WILLIAM B.HIRKSEY,CPA WI;DG�WOOD OFFIC�PARK MeMHeas
MARK A.LAY,CPA 4395 N.OCOEE STR�L;"I' �E�uc���Nsrrru�ri:or
SCOTT D.HALL,CPA CLEVEIu1ND,TENNESSEE 37312 crrrririE�PasLic accouN�raN'rs
AI�GELA KEY RITCHEY,CPA ��r��essrr soc���:i��of�
BRANDON H.BARNES,CPA T�L�PHONE: (423) 47G5581 cetrnH[��Yurc[c accoutv'r��rrs
FACSIMILE: (423) 472-9893
EMAIL:cpa U wedgewoodaccou�ting.com
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Council
of the City of Cleveland
Cleveland, Tennessee
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 City of Cleveland, Tennessee, as of and for
the year ended June 30,2022,and the related notes to the financial statements,which collectively comprise the City
of Cleveland, Tennessee's basic financial statements as listed in the table of contents.
In our opinion, the financial statements refened 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 City of Cleveland,Tennessee,as of June 30,2022, and the respective changes in
financial position and, where applicable, cash flows thereof 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 GovernmentAuditing 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 City of Cleveland, Tennessee, and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinions.
Change in Accounting Principle
As described in the notes to the financial statements, the Board has adopted the provision of Governmental
Accounting Standards Board (GASB) Statement No. 87, Leases. GASB 87 establishes a single approach to
accounting for and reporting leases by state and local governments. Our opinion is not modified with respect to
this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the fmancial statements in accordance with
accounting principles generally accepted in the United States of America, and for the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement,whether due to fraud or enor.
� - 1 -
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate,that raise substantial doubt about the City of Cleveland,Tennessee's ability to continue
as a going concern for twelve months beyond the fmancial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
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 from
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 Government Auditing Standards will always detect a material
misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than
for one resulting from error, as fraud may involve collusion,forgery, intentional omissions,misrepresentations, or
the override of internal control. Misstatements aze 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 fmancial
statements.
In performing an audit in accordance with GAAS and Government Auditing Standards,we: �
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis,evidence regarding the amounts and disclosures in the fmancial 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 City of Cleveland,Tennessee's intemal 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 sta.tements.
• Conclude whether, in our judgment,there are conditions or events, considered in the aggregate,that raise
substantial doubt about the City of Cleveland, Tennessee's ability to continue as a going concern for a
reasonable period of time.
We are required to communicate with those chazged with govemance regarding, among other matters,the planned
scope and timing of the audit, significant audit fmdings, 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 4 through 16 and the required supplementary information related to post-employment benefits
and pension liability as reported on pages 110 through 128 be presented to supplement the basic fmancial sta.tements.
Such information is the responsibility of management and, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part of finazxcial
reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing
standards generally accepted in the United States of America, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries,the basic fmancial statements,and other knowledge we obtained during our audit of the
basic fmancial statements.We do not express an opinion or provide any assurance on the information because the
limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
-2-
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Cleveland, Cleveland, Tennessee's basic financial statements. The combining and individual nonmajor
fund financial statements, the budgetary comparison for the Capital Improvement Program fund, and the capital
assets schedules aze presented for purposes of additional analysis and are not a required part of the basic fmancial
statements. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the basic financial statements. The information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of America.In
our opinion, the combining and individual nonmajor fund fmancial statements 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, statistical sections and other section, but does not include the basic financial statements and our
auditor's report thereon. Our opinions on the basic fmancial 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 e�sts 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 Requirements by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued our report dated January 20,2023,on our
consideration of the City of Cleveland, Tennessee's intemal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over fmancial reporting and
compliance and the results of thattesting,and not to provide an opinion on the effectiveness ofthe City of Cleveland,
Tennessee's intemal 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 the City of Cleveland, Tennessee's
intemal control over financial reporting and compliance
��e.o��-� �,�e��cu�, Pu•�—
Wedgewood Accounting,PLLC
Certified Public Accountants
Januaty 20,2023
-3 -
Management's Discussion and Analysis
As management of the City of Cleveland, we offer readers of the city's financial statements this
narrative overview and analysis of the financial activities of the City of Cleveland for the fiscal year
ended June 30,2022. We encourage readers to consider the information presented here in conjunc�ion
with additional information that we have furnished in our letter of transmittal,which can be found in
pages i—vi of this report.
Financial Highiights
■ The assets and deferred outflows of the City of Cleveland exceeded its liabilities and deferred
inflows at June 30, 2022 by $394,964,393 (net position).
■ Net position(defined as the difference in revenues and expenses)increased by$54,772,100. The
City of Cleveland's changes in net position is detailed in the chart on page eight of this report.
Tota1 revenues increased $18,540,800 which included increases in operating grants for education
and service charges for public works. Expenses increased $4,318,267 from last fiscal year
primarily in development and engineeri.ng and public works.
■ The city's property tax rate remained at$1.713 per hundred dollars of assessment. This maintains
the current level of services for city residents.
■ The city's residential sanitation fee increased to $8.95 per month.
■ As of the close of the current fiscal yeax, the City of Cleveland's governmental funds reported
combined ending fund balances of$98,949,616.
■ At the end of the current fiscal year, unassigned fund balance for the general fund was
$33,397,184. Expenditures do not include transfers to other funds, which totaled$15,987,497 in
the city's general fund.
■ Long-term debt increased approxixnately$18,236,456.
Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction of the City of Cleveland's basic
financial statements. The City of Cleveland's basic fmancial statements comprise three components:
1) government-wide financial statements, 2) fund financial sta.tements, and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
Government-wide financial statements. The government-wide financial statements are designed
to provide readers with a broad overview of the City of Cleveland's fmances, in a manner similar to
a private-sector business.
The statement of net position presents information on all of the City of Cleveland's assets and
liabilities, with the difference between the two reported as net position. Over time, increases or
decreases in net position may serve as a useful indicator of whether the financial condition of the City
of Cleveland is improving or deteriorating.
The statement of activities presents information showing how the government's net position changed
during the most recent fiscal year. All changes in net position are reported as soon as the underlying
event giving rise to the change occurs,regardless of the timing of related cash flows. Thus,revenues
and expenses axe reported in this statement for some items that will only result in cash flows in future
fiscal periods (e.g.,uncollected taxes and eamed but unused vacation leave).
-4-
Both of the government-wide financial statements distinguish functions of the City of Cleveland that
are principally supported by taxes and intergovernmental revenues (governmental activities) from
other functions that are intended to recover all or a significant portion of their costs through user fees
and charges (business-type activities). The governtnental activities of the City of Cleveland include
general governxnent, public safety, highways and streets, sanitation, economic development, and
culture and recreation. The business-type activities of the City of Cleveland include Cleveland
Utilities Electric and Water Systems.
The government-wide fmancial statements include not only the City of Cleveland itself(which is the
primary government),but also the operations of the Cleveland City Schools,Cleveland Public Library
and Cleveland Utilities which are not considered legally separate. However, the Cleveland Housing
Authority, the Bradley/Cleveland Industrial Development Boaxd, and the Health and Educational
Facilities Board are not legal entities of the City of Cleveland,and accordingly are excluded from this
report.
The government-wide fmancial statements can be found on pages 17-19 of this report.
Fund financial statements. A fund is a grouping of related accounts that is used to ma.intain control
over resources that have been segregated for specific activities or objectives. The City of Cleveland,
like other state and loca.l governments, uses fund accounting to ensure and demonstrate compliance
with fmance-related legal requirements. All of the funds of the City of Cleveland can be divided into
two categories: governmental funds and proprietary funds.
Governmental funds. Governmental fiznds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike
the government-wide fmancial sta.tements, governmental fund fmancial statements focus on near-
term inflows and outflows of spendable resources, as well as on balances of spendable resources
available at the end of the fiscal year. Such information may be useful in evaluating a government's
near-term fmancing requirements.
Because the focus of governmental funds is narrower than that of the government-wide fmancial
statements, it is useful to compare the information presented for governmental funds with s'v.nilar
information presented for governmental activities i.n the government-wide financial statements. By
doing so, readers may better understand the long-term impact of the government's near-term
financing decisions. Both the governmental fund balance sheet and governmental fund statement of
revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this
comparison between governmental fu.nds and governmental activities.
The City of Cleveland maintains a number of individual governmental funds. Information is
presented separately in the governmental fund balance sheet and in the governmental fund statement
of revenues,expenditures, and changes in fund balances for the general fund, school fund and capital
improvement fund,which are considered to be major funds. Data from the remaining governmental
funds are combined into a single aggregated presentation. Ind.ividual fund data for each of these non-
major governmental funds is provided in the form of combining sta.tements later in this report
beginning on page 129.
- 5 -
The City of Cleveland adopts an annual appropriated budget for its governmental funds. A budgetary
comparison statement has been provided for the maj or governmental funds including the general fund
and school fund to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 20-56 of this report.
Proprietary funds. The City of Cleveland maintains two different types of proprietary funds:
enterprise fiznds and internal service funds. Enterprise funds are used to report the same functions
presented as business-iype activities in the government-wide financial statements. The City of
Cleveland uses enterprise funds to account for its Cleveland Utilities Electric and Water operations.
Internal service funds are an accounting device used to accumulate and allocate costs internally
among the City of Cleveland's various functions. The City of C1eveland uses an internal service fiuld
to account for servicing its fleet of vehicles. Because this service predominantly benefits
governmental rather than business-type functions,it has been included within governmental activities
in the government-wide financial statements.
Proprietary funds provide the same type of information as the government-wide financial statements,
only in more detail. The proprietary funds financial statements provide sepaxate information for the
Cleveland Utilities Electric and Water operations, both of which are considered to be major funds of
the City.
The basic proprietary fund financial statements can be found on pages 57-60 of this report.
Fiduciary funds. Fiduciary funds are used to account for the resources held for the benefit of parties
outside of the government. Fiduciary funds are not reported in the government-wide fmancial
statements because the resources of those funds axe not available to support the City of Cleveland's
own programs. The accounting used for fiduciary fw�ds is much like that used for proprietary funds.
The City of Cleveland maintains one type of fiduciary fund. The Other Post-Employee Benefits Trust
Fund—Cleveland Utilities is used to report resources held in trust for retirees.
The fiduciary fund fmancial statements can be found on pages 61-62 of this report.
Notes to the financial statements. The notes provide additional information that is essential to a full
understa,nding of the data provided in the government-wide and fund financial statements. The notes
to the financial statements can be found on pages 63-109 of this report.
Other information. In addition to the basic financial sta.tements and accompanying notes,this report
also presents certa.in required supplementary information concerning the City of Cleveland's progress
in fiznding its obligation to provide pension benefits to its employees. Required supplementary
information can be found on pages 110-128 of this report.
The combining statements referred to eaxlier in connection with the non-maj or governmental funds,
as well as the data for the internal service fund, are presented immediately following the required
supplementary information on pensions. Combining and individual fund statements and schedules
can be found on pages 129-160 of this report.
- 6-
Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a governrnent's financial
position. In the case of the City of Cleveland, assets and deferred outflows exceeded liabilities and
deferred inflows by $394,964,393 at the close of this fiscal year.
The largest portion of the City of Cleveland's net position reflects its investment in capital assets
(e.g., land, buildings, machinery, and equipment), less any debt used to acquire those assets that is
still outstanding. The City of Cleveland uses these capital assets to provide services to its citizens;
consequently, these assets are not available for future spending. Although the City of Cleveland's
investment in its capital assets is reported net of related debt, it should be noted that the resources
needed to repay this debt must be provided from other sources, since the capital assets themselves
cannot be used to liquidate these liabilities.
City of Cleveland's Net Position
Governmenta/ Business-type Total
Activities Acfivities
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
Currentassets $145,157,298 $109,415,384 $65,617,044 $60,801,322 $210,774,342 $170,216,706
Receivables and other
noncurrent assets 29,537,749 5,557,089 3,306,979 2,885,432 32,844,728 8,442,521
Deferred charges 0 0 0 0 0 0
Capital assets 236,513,879 230,606,000 239,173,219 227,951,856 475,687,098 458,557,856
Total assets 411,208,926 345,578,473 308,097,242 291,638,610 719,306,168 637,217,083
Total deferred outflows of
Resources 34,605,323 19,612,994 7,335,687 8,874,819 41,941,010 28,487,813
Long-term liabilities
Outstanding 132,668,494 145,320,190 83,845,403 96,961,568 216,513,897 242,281,758
Other liabilities 14,030,624 14,088,801 26,117,081 25,118,184 40,147,705 39,206,985
Totalliabilities 146,699,118 159,408,991 109,962,484 122,079,752 256,661,602 281,488,743
Total deferred inflows of
Resources 95,573,611 41,539,953 14,047,572 2,483,907 109,621,183 44,023,860
Net position:
Net Investment in capital
assets 160,882,458 150,289,044 164,321,524 155,930,891 325,203,982 306,219,936
Resfricted 53,566,478 26,089,661 0 0 53,566,478 26,089,661
Unrestricted (10,907,416) (12,609,818) 27,101,349 20,018,879 16,193,933 7,409,061
Total net position $203,541,520 $164,242,523 $191,422,873 $175,949,770 $394,964,393 $340,192,293
13.6 percent of the Ciiy of Cleveland's net position represents resources that are subject to external
restrictions on how they may be used.
- 7 -
City of Cleveland's Changes in Net Position
Governmental Business-type Total
Activities Activities
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
Revenues:
Program revenues:
Chargesforservices $8,402,525 $6,343,633 $144,330,445 $134,929,104 $152,732,970 $141,272,737
Operating grants and 68,531,470 63,396,173 308,074 276,966 68,839,544 63,673,139
Contributions
Capital grants and contributions 7,120,650 8,863,133 1,123,570 1,735,300 8,244,220 10,598,433
General revenues:
Property taxes 27,205,753 26,167,522 0 0 27,205,753 26,167,522
Othertaxes 31,547,928 28,643,990 0 0 31,547,928 28,643,990
Grants and contributions not 731,695 808,113 0 0 731,695 808,113
restricted to specific programs
Other 245,974 147,581 361,520 57,289 607,494 204,870
Total revenues 143,785,995 134,370,145 146,123,609 136,998,659 289,909,604 271,368,804
F�cpenses:
General government 4,570,431 4,475,964 0 0 4,570,431 4,475,964
Development and engineering 2,218,756 2,055,406 0 0 2,218,756 2,055,406
Publicsafety 21,099,938 24,382,352 0 0 21,099,938 24,382,352
Public works 13,409,381 11,760,654 0 0 13,409,381 11,760,654
Health and welfare 0 716,655 0 0 0 716,655
Culture and recreation 4,281,085 5,246,725 0 0 4,281,085 5,246,725
Education 59,226,357 60,039,485 0 0 59,226,357 60,039,485
Interest on long-term debt 2,585,183 3,029,596 0 0 2,585,183 3,029,596
Water and sewer 0 0 30,035,698 28,485,251 30,035,698 28,485,251
Electric 0 0 96,702,765 90,020,984 96,702,765 90,020,984
Stormwater 0 0 1,007,910 606,165 1,007,910 606,165
Totalexpenses 107,391,131 111,706,837 127,746,373 119,112,400 235,137,504 230,819,237
Increase(decrease)in net position 36,394,864 22,663,308 18,772,236 17,886,259 54,772,100 40,549,567
before transfers
Transfers 2,904,133 2,973,022 (2,904,133) (2,973,022) 0 0
Increase(decrease)in net position 39,298,997 25,636,330 15,473,103 14,913,237 54,773,100 40,549,567
Net position—beginning 164,242,523 133,298,430 175,949,770 161,036,533 340,192,293 294,334,963
Prior period adjustment 0 5,307,763 0 0 0 5,307,763
Net position—restated 164,242,523 138,606,193 175,949,770 161,036,533 340,192,293 299,642,726
Netposition—ending $203,541,520 $164,242,523 $191,422,873 $175,949,770 $394,964,393 $340,192,293
- g -
Governmental activities. Governmental activities increased the City of Cleveland's net position by
$39,298,997.
■ The city's property tax rate decreased from$2.060 to $1.713 per $100 of assessed value in fiscal
year 2022. Tax revenues increased$3,942,169 from FY2021.
■ Operating grants and contributions increased $5,166,405 due to a combination of increases in
federal, state and local funds received for general government and education.
■ Capital grants and contributions decreased $2,354,213 relating to general government and
education projects.
■ Cleveland's second largest revenue source is local sales tax which increased $1,871,956. In
Tennessee,the first half of local sales tax goes to education based upon average daily attendance.
The second half is generally distributed between cities and counties based upon whether the sale
occurred in the city or the county; however, Cleveland and Bradley County's local sales t�
(second hal fl is distributed according to a local agreement, instead of the state's situs-based
formula. However, the 2010 half cent increase is outside this agreement and follows the state
formula.
■ Expenses increased$4,315,706 primarily for development and engineering and public works.
Expenses and Program Revenues—Governmental Activities
�o,000,000
60,000,000 `
50,000,000
40,000,000 .
30,000,000
20,000,000 ---
■Expenses
10,000,000 —� --
m Revenues
_ -�°' `. _,` —
�� � --
��e z�t�� as�e'� o�y �`°� �\°� z'a�.
o�et ��� .p�`c,�' \\� Gtza ��a ,�O
�\� �� Q� Q J,� ��� �a o�.
�t ao a� ey�.
�e� ��� ie ��t
e�°�� �'�\�� \�
��
O
- 9 -
Revenues by Source—Governmental Activities
Grants and
contributions not
restricted - __
0.5% -----------
�
Property taxes Ot#�er taxes
18.9`Yo 2�:�%a
Capital grants and _Other
contributions =__ ____- p 2�
5.0% 1-'�=- -
\
- �Charges for services
5.8%
Operating grants
and contributions
47.7%
Business-type activities. Business-type activities increased the City of Cleveland's net position by
$15,473,103.
■ Charges for services increased $9,401,341. This incxease is attributed primarily to the electric
division of Cleveland Utilities.
■ Capital grants and contributions decreased $611,730 primarily from water, sewer and electric
projects.
■ Expenses for business-type activities increased $8,633,973. The most significant changes in
expenses were in the electric division of Cleveland Utilities.
- 10 -
Expenses and Program Revenues—Business-type Activities
120,000,000
110,000,000 . .. ..........r • � � ,. ,........,....... ....,.. „ , ..�.........
100,000,000 ...................._........---.....___.........._................_........... ................._...................................................
90,00 0,00 0 .......,...,............:......:... ..........:........,.................
80,000,000 - _ _ ...,.,................ ......_.............,,..........
70,000,000 .........................................................._.......... .. . ■Expenses
60,000,000 ■Program
................................. .
................. ......:....
"'" revenues
50,000,00 0 .............................._...............................
40,000,000 ........................ ......... .............:...,,_,...,..,�.....
30,000,000 ...... ... .............;....,..:................
20,000,000 ...... ... . ....... ... ....:.......•...�.........
- � -
10,000,000 ..... ............ .. ... ...,.,.,t�......,.
0
Wate� a��� ,,...�er E,c����� Stormwater
Revenues by Source—Susiness-type Activities
_ __--- --------__._.__._.____.
Grants and Othef ` I
contributions_� -_--� J ^�-.-- �•Z�
1.0%
Chargesfor
services
98.8%
- 11 -
Financial Analysis of the City's Funds
As noted earlier, the City of Cleveland uses fund accounting to ensure and demonstrate compliance
with finance-related legal requirements.
Governmental funds. The focus of the City of Cleveland's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information
is useful in assessing the City of Cleveland's financing requirements. The unassigned fund balance
may serve as a useful measure of a govemment's net resources available at the end of the fiscal year
for future unforeseen emergencies.
As of the end of the current fiscal year,the City of Cleveland's governmental funds reported combined
ending fund balances of $98,949,616, an increase of$33,419,046. The combined fund balance is
broken down as follows:
■ $922,848 is non-spendable consisting of inventories and permanent fund principal
■ $44,243,213 is restricted for limited use in law enforcement, coxnmunity development, street
improvements, capital ouday, education and retirement funds
■ $1,813,943 is committed by the City Council for use by Solid Waste Management
■ $18,572,428 is assigned for designated use for education,the library, debt service and capital
outlay
■ $33,397,184 is unassigned.
The general fund is the chief operating fund of the City of Cleveland. At the end of the current fiscal
year, unassigned fund balance was $33,397,184. Unassigned fund balance represents 84.2% of
general fund expenditures. However, the unassigned fund balance only represents 60% when
compared to general fund expenditures and transfers to other funds (e.g., debt service and schools).
The fund balance of the City of Cleveland's general fund increased $6,326,580 during the current
fiscal year. City revenues were $2,381,781 higher than fmal budgeted amounts. City departments
kept expenditures under budget by $2,506,357. The fund balance of the School Fund increased
$1,375,187.
The debt service fiznd has a total fund balance of$6,659,597. The net increase in fund balance during
the current year was $672,718.
Proprietary funds. The City of Cleveland's proprietary funds provide the same type of information
found in the government-wide fmancial statements, but in more detail.
Unrestricted net position at the end of the year amounted to $5,040,617 for the Cleveland Utilities
Water Division, $19,684,702 for Cleveland Utilities Electric Division, $2,376,030 for Stormwater
Management and$2,516,624 for the Health Insurance Trust Fund.
- 12 -
General Fund Budgetary Highlights
General fund revenues were amended during the year to increase $4,236,037. General fund
expenditures were amended to increase $2,176,002 distributed among several departments.
Departmental budget officers closely monitored expenditures during the fiscal year to minimize
budget amendments.
Actual revenues exceeded the final amended budget by$2,381,781. This was primarily due to higher
t�collections and intergovernmental revenues.
Differences between the final amended budget and actual expenditures were $2,506,357. Vacancies
in some deparixnents and reductions in spending throughout all departments accounted for this.
Capital Asset and Debt Administration
Capital assets. The City of Cleveland's investment in capital assets for its governmental and business
Type activities as of June 30,2022 amounts to$475,687,098(net of accumulated depreciation),which
is a $17,129,242 increase over last fiscal year. This investment in capital assets includes land,
buildings, other improvements, equipment, and infrastructure.
Major capital asset events during the current fiscal year included the following:
■ General government added $1,944,372 in equipment and improvements.
■ Public Safety added$1,597,779 in police patrol units and equipment for the fire department.
■ Public Works added $2,578,749 primarily in road and sidewalk infrastructure and other
improvements.
■ Parks and Recreation added$1,622,021 in parks,equipment,and recreation center improvements.
■ Cleveland City Schools added$3,486,253 in building improvements and equipment.
- 13 -
City of Cleveland's Capital Assets
(net of depreciation)
Governmental Business-type Total
Activities Activities
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
Land $38,073,782 $38,073,782 $ 3,302,702 $ 3,302,702 $41,376,484 $41,376,484
Buildings and
Systems 106,447,140 107,096,420 215,556,755 203,408,450 322,003,895 310,504,870
Improvements
other than
buildings 19,151,647 18,428,178 0 0 19,151,647 18,428,178
Furniture,
fixtures,
equipment&
vehicles 13,004,711 12,059,694 0 0 13,004,711 12,059,694
Infrastructure 47,347,308 47,017,145 0 0 47,347,308 47,017,145
Leases—right
to use assets 1,166,637 0 31,302 0 1,197,939 0
Construction in
Progress 11,322,654 7,930,781 20,282,460 21,240,704 31,605,114 29,171,485
Total $236,513,879 $230,606,000 $239,173,219 $227,951,856 $475,687,098 $458,557,856
Additional information on the City of Cleveland's capital assets can be found in Note 4 on pages 75-
76 of this report.
Long-term debt. At the end of the current fiscal year, the City of Cleveland had total debt
outstanding of$171,082,200. Of this amount,$83,099,000 comprises bonds backed solely by the full
faith and credit of the city. The city also issues bonds secured by specified revenue sources (i.e.,
revenue bonds); however, in the event of default, the full faith and credit of the city are irrevocably
pledged. The city had $40,885,000 in revenue bonds outstanding at the end of the fiscal year. The
city also finances capital projects through loans from bond proceeds issued by various agencies in
Tennessee, including $2,513,913 for city general projects and $29,226,717 for Cleveland Utilities.
The City had $1,138,691 in leases outstanding at the end of the year for office and computer
equipment.
- 14 -
City of Cleveland's Outstanding Debt
(General Obligation Bonds, Revenue Bonds, Loans through Bond Proceeds issued by the Public
Building Authorities of Sevier and Blount Counties, Tennessee, and other long-term notes)
Governmental Business-type Total
activities Activities
FY2022 FY2021 FY2022 FY2021 FY2022 FY2021
General obligation
bonds 83,099,000 68,677,000 0 0 83,099,000 68,677,000
Long-term notes issued
through various
agencies in TN 2,513,913 3,018,878 29,226,717 24,747,236 31,740,630 27,766,114
Leases 1,106,605 0 32,086 0 1,138,691 0
Revenue bonds 0 0 40,885,000 42,300,000 40,885,000 42,300,000
Less bond discounU
Premiums 9,383,680 8,989,151 4,835,199 5,113,479 14,218,879 14,102,630
Total 96,103,198 80,685,029 74,979,002 72,160,715 171,082,200 152,845,744
In May 2022, the City of Cleveland on beha.lf of Cleveland Utilities entered into a $10,000,000
revolving loan agreement to finance the wastewater rehabilitation plan. The loan is to be paid back
over a 20-year period with a fixed interest rate.
Also in May 2022, the Ciiy of Cleveland issued $19,220,000 in bonds to fund various capital
improvement projects. The bonds are to be paid back over a 25-year period with a fixed interest rate
and will mature June l,2043.
Further deta.ils about the city's long-term debt axe included in Note 6 on pages 77-81.
The City of Cleveland ma.intains an"AA"rating from Standard & Poor's and an "Aa3"rating from
Moody's Investor Service for general obligation debt. The revenue bonds of Cleveland Utilities carry
the same ratings.
State statutes do not limit the amount of general obligation debt a governmental entity may issue;
however,the city has adopted a fmancial policy which limits long-term debt to 10 percent of its total
assessed valuation. This calculation does not include revenue bonds issued for improvements in the
electri.c and water systems. The ciiy's legal debt margin at June 30, 2022 is $76,629,364 and is
calculated on page 193 of this report.
- 15 -
Economic Factors and Next Year's Budget and Rates
■ The June 2022 unemployment rate for Cleveland was 4.4 percent, which is a decrease of 0.8
percent from June 2021. Bradley County's unemployment rate decreased to 4.4 percent from 5.3
percent the previous year. Tennessee's average unemployment rate was 3.3 percent, and the
national average rate was 3.6 percent.
■ The city qualifies as an Entitlement Community for the CDBG program due to designation as a
principal city in a Metropolitan Statistical Area(MSA).
■ State sales tax revenue increased 2.2 percent over FY2021. This combined with strong demand
for housing and increased retail development continues to strengthen the local economy.
All of these factors were considered in preparing the city's budget for the 2023 fiscal year.
Management has again been conservative in estimating revenues for 2023.
Requests for Information
This financial report is designed to provide a general overview of the City of Cleveland's finances
for all those with an interest in the city's fmances. Questions concerning any of the information
provided in this report or requests for additional financial information may be addressed to the City
of Cleveland, Office of the Assistant City Manager/Chief Financial Officer, Post Office Box 1519,
Cleveland, Tennessee 37364-1519.
- 16 -
BASIC FINANCIAL STATEMENTS
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF NET POSITION
June 30,2022
Primary Government
Business-
Governmental type
Activities Activities Total
ASSETS
Current assets:
Cash and cash equivalents $ 83,813,765 $ 41,402,194 $ 125,215,959
Cash and cash equivalents-restricted 209,353 0 209,353
Investments 10,213,054 0 10,213,054
Investments-restricted 250,583 0 250,583
Accounts receivable-net � 1,279,577 20,621,701 21,901,278
Property ta�ces receivable-net 28,363,170 0 28,363,170
Sales tax receivable 5,591,151 0 5,591,151
Due from other government agencies 14,159,100 0 14,159,100
Intemal balances 828,333 (828,333) 0
Inventories 342,431 4,109,729 4,452,160
Prepaids 106,781 311,753 418,534
Total current assets $ 145,157,298 $ 65,617,044 $ 210,774,342
Noncurrent assets:
Receivable from customers for conservation loans $ 0 $ 1,326,585 $ 1,326,585
Other noncurrent assets 0 1,447,798 1,447,798
Net pension asset-restricted 29,001,463 532,596 29,534,059
Restricted assets:
Amounts accumulated for pension benefits 536,286 0 536,286
Capital assets:
Land and construction in progress 49,396,436 23,585,162 72,981,598
Other capital assets,net of accumulated depreciation 187,117,443 215,588,057 402,705,500
Total noncurrent assets $ 266,051,628 $ 242,480,198 $ 508,531,826
TotalAssets $ 411,208,926 $ 308,097,242 $ 719,306,168
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding $ 363,964 $ 370,373 $ 734,337
Deferred outIlows-pensions 26,329,081 6,027,057 32,356,138
Deferred outflows-opeb 7,912,278 938,257 8,850,535
Total Deferred OutIlows ofResources $ 34,605,323 $ 7,335,687 $ 41,941,010
The accompanying notes are an integral part of these financial statements. -17-
Primary Government
Business-
Governmental type
Activiries Activities Total
LIABILITIES
Current liabilities:
Accrued liabilities $ 5,359,583 $ 3,637,343 $ 8,996,926
Accounts payable 2,461,362 12,115,757 14,577,119
Customer deposits 0 4,062,704 4,062,704
Bonds,notes and leases-current 5,953,375 6,301,277 12,254,652
Compensated absences payable-current 256,304 0 256,304
Total current liabilities $ 14,030,624 $ 26,117,081 $ 40,147,705
Long-term liabilities:
Conservation advances from TVA $ 0 $ 1,375,170 $ 1,375,170
Other noncurrent liabilities 0 0 0
Bonds,notes and leases payable 90,149,823 68,677,725 158,827,548
Compensated absences payable 2,306,738 0 2,306,738
Post-employment benefits payable 40,211,933 12,299,421 52,511,354
Net pension liability 0 1,493,087 1,493,087
Total long-term liabilities $ 132,668,494 $ 83,845,403 $ 216,513,897
Total Liabilities $ 146,699,118 $ 109,962,484 $ 256,661,602
DEFERRED INFLOWS OF RESOURCES
Deferred revenue-property taxes $ 34,002,003 $ 0 $ 34,002,003
Deferred revenue-other 14,627 0 14,627
Defened charge on refunding 44,015 253,233 297,248
Deferred inflows-pensions 38,885,169 10,476,034 49,361,203
Deferred inflows-opeb 22,627,797 3,318,305 25,946,102
Total Deferred Inflows of Resources $ 95,573,611 $ 14,047,572 $ 109,621,183
IVET POSITION
Net investrnent in capital assets $ 160,882,458 $ 164,321,524 $ 325,203,982
Restricted for:
Law enforcement 256,973 0 256,973
Community development-federal grants 155,840 0 155,840
Street improvements 2,785,792 0 2,785,792
Capital outlay 20,336,388 0 20,336,388
Education 20,106 0 20,106
Pension 29,537,743 0 29,537,743
Perpetual caze:
Nonexpendable 473,636 0 473,636
Unrestricted (10,907,416) 27,101,349 16,193,933
Total Net Position $ 203,541,520 $ 191,422,873 $ 394,964,393 �
The accompanying notes are an integral part of these financial statements. - 18-
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CITY OF CLEVELAND,TENNESSEE
BALANCESHEET
GOVERNMENTAL FUNDS
June 30,2022
Capital
Improvement Other Tota.l
General School Program Governmental Govemmental
Fund Fund Fund Funds Funds
ASSETS
Cash and cash equivalents $ 20,228,952 $ 8,979,730 $ 26,432,445 $ 25,338,645 $ 80,979,772
Cash and cash equivalents-restricted 0 0 0 209,353 209,353
Investments 9,989,660 0 4,140 219,254 10,213,054
Investments-resh-icted 0 0 0 250,583 250,583
Accounts receivable-net 961,904 0 0 295,084 1,256,988
Property taxes receivable-net 28,363,170 0 0 0 28,363,170
Sales tax receivable 3,476,496 2,114,655 0 0 5,591,151
Due from other govemment agencies 252,184 8,972,766 1,241,740 3,692,410 14,159,100
Due from other funds 106,622 1,449,609 0 828,333 2,384,564
Inventories 342,431 0 0 0 342,431
Prepaids 66,759 0 39,822 200 106,781
Restricted assets 0 536,286 0 0 536,286
Total Assets $ 63,788,178 $ 22,053,046 $ 27,718,147 $ 30,833,862 $ 144,393,233
LIABTLITIES "
Accrued liabilities $ 1,114,816 $ 3,622,506 $ 0 $ 412,872 $ 5,150,194
Accounts payable 382,594 534,480 737,980 466,345 2,121,399
Due to other funds 0 0 0 1,556,231 1,556,231
Unearned revenue 0 0 0 14,627 14,627
Total Liabilities $ 1,497,410 $ 4,156,986 $ 737,980 $ 2,450,075 $ 8,842,451
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-current property taxes $ 26,735,554 $ 7,266,449 $ 0 $ 0 $ 34,002,003
Unavailable revenue-delinquent property taxes 1,611,564 11,663 0 0 1,623,227
Unavailable revenue-other 127,801, 723,721 0 124,414 975,936
Total Defened Inflows of Resources $ 28,474,919 $ 8,001,833 $ 0 $ 124,414 $ 36,601,166
FUND BALANCES
Nonspendable:
Inventory $ 342,431 $ 0 $ 0 $ 0 $ 342,431
Prepaid items 66,759 0 39,822 200 106,781
Permanent fund principal 0 0 0 473,636 473,636
Resh-icted for:
Law enforcement 0 0 0 256,973 256,973
Community development-federal grants 0 0 0 155,840 155,840
Street improvements 0 0 0 2,785,792 2,785,792
Capital outlay 9,475 0 26,940,345 13,538,396 40,488,216
Education 0 11,865 0 8,241 20,106
Hybrid retirement stabilization funds 0 536,286 0 0 536,286
Committed to:
Solid Waste 0 0 0 1,813,943 1,813,943
Assigned to:
Education 0 9,346,076 0 1,983,837 11,329,913
Library 0 0 0 539,656 539,656
Debt service 0 0 0 6,659,597 6,659,597
Capital outlay 0 0 0 43,262 43,262
Unassigned 33,397,184 0 0 0 33,397,184
TotalFundBalances $ 33,815,849 $ 9,894,227 $ 26,980,167 $ 28,259,373 $ 98,949,616
Total Liabilities,Deferred Inflows of
Resources,andFundBalances $ 63,788,178 $ 22,053,046 $ 27,718,147 $ 30,833,862 $ 144,393,233
The accompanying notes are an integral part of these financial statements. -20-
CITY OF CLEVELAND,TENNESSEE
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
June 30,2022
Total fund balances per governmental funds balance sheet $ 98,949,616
Capital assets used in governmental acrivities are not financial
resources and,therefore,are not reported in the funds. 236,513,879
Long-term liabilities,including bonds,notes payable,compensated absences,
post-employment benefits,pension liability and interest payable are not due
and payable in the c�rrent period and,therefore,are not reported in the funds. (110,086,104)
Intemal service funds aze used by management to charge the costs of health
insurance through the health insurance trust to individual funds. The assets
and liabilities of the internal service fund are included in governmental
acrivities in the statement of net assets. 2,516,624
The net difference on debt refunding is deferred and expensed over the life
of the refunding debt issue. 319,949
Amounts reported as deferred outflows of resources and deferred inIlows of
resources related to pensions will be amortized and recognized as a component
of pension expense in future years. (12,556,088)
Amounts reported as deferred outflows of resources and deferred inflows of
resources related to opeb will be amortized and recognized as a component
of opeb expense in futvre years. (14,715,519)
Some of the City's revenues will be collected after yeaz-end but are
not available soon enough to pay for the current period's expenditures
and,therefore,aze deferred in the funds. 2,599,163
Net position of governmental activities $ 203,541,520
The accompanying notes are an integral part of these financial statements. -21 -
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30,2022
Capital
Improvement Other Total
General School Program Governmental Govemmental
Fund Fund Fund Funds Funds
Revenues:
Taxes $ 46,824,125 $ 0 $ 0 $ 5,243,770 $ 52,067,895
Licenses and pernuts 1,634,572 0 0 0 1,634,572
Intergovernmental 6,944,817 48,022,336 3,948,657 22,392,580 81,308,390
Fines and forfeitures 460,023 0 0 37,401 497,424
Charges for services 2,538,758 102,486 0 3,617,427 6,258,671
Interest 83,262 6,777 53,380 102,556 245,975
Miscellaneous 134,761 237,168 423,428 49,161 844,518
Total revenues $ 58,620,318 $ 48,368,767 $ 4,425,465 $ 31,442,895 $ 142,857,445
Expenditures:
Current:
General government $ 3,554,433 $ 0 $ 0 $ 997,355 $ 4,551,788
Development and engineering 1,924,011 0 0 450,067 2,374,078
Public safety 23,555,147 0 0 31,271 23,586,418
Public works 6,932,911 0 0 4,503,467 11,436,378
Culture and recreation 2,322,040 0 0 1,456,609 3,778,649
Education 0 50,962,832 0 11,502,743 62,465,575
Appropriations 1,377,407 0 0 0 1,377,407
Capital outlay 0 264,706 6,221,189 7,639,925 14,125,820
Debt service:
Principal retirement 0 538,560 466,457 5,263,607 6,268,624
Interest and fiscal charges 0 51,840 190,079 2,868,759 3,110,678
Total expenditures $ 39,665,949 $ 51,817,938 $ 6,877,725 $ 34,713,803 $ 133,075,415
Excess(deficiency)of revenues
over expenditures $ 18,954,369 $ (3,449,171) $ (2,452,260) $ (3,270,908) $ 9,782,030
Other financing sources(uses):
Transfers in $ 2,904,133 $ 5,609,037 $ 2,004,718 $ 9,642,228 $ 20,160,116
Transfers out (15,987,497) (816,913) 0 (451,573) (17,255,983)
Notes issued 455,575 0 0 0 455,575
Bonds issued 0 0 19,220,000 0 19,220,000
Premiums on bonds issues 0 0 1,025,074 0 1,025,074
Lease financing 0 32,234 0 0 32,234
Total other financing
sources(uses) $ (12,627,789) $ 4,824,358 $ 22,249,792 $ 9,190,655 $ 23,637,016
Net change in fund balances $ 6,326,580 $ 1,375,187 $ 19,797,532 $ 5,919,747 $ 33,419,046
Fund balance at beginning ofyear 27,489,269 8,519,040 7,182,635 22,339,626 65,530,570
Fund balance at end ofyear $ 33,815,849 $ 9,894,227 $ 26,980,167 $ 28,259,373 $ 98,949,616
The accompanying notes are an integral part of these financial statements. -22-
CITY OF CLEVELAND,TENNESSEE
RECONCII,IATION OF THE STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Fiscal Yeaz Ended June 30,2022
Net change in fund balances for total governmental funds $ 33,419,046
Governmental funds report capital ouday 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 capital outlay exceeded depreciation in the current period. 4,547,480
Governmental funds report only the proceeds from the sale of assets and do not
take into effect the cost of capital assets sold. (224,056)
Revenues in the statement of activities that do not provide current financial
resources are pot reported as revenues in the funds. 678,681
Repayment of long-term debt is reported as an expenditure in governmental
funds,but the repayment reduces long term liabilities in the statement of
net assets. 6,268,624
Debt issued is reported as a financial resource in the governmental funds.
However,this is reported as an increase in long-term liabilities in the
statement of net assets. (20,732,883)
Internal service funds are used by management to charge the costs of health
insurance premiums to individual funds. The net activity of the internal service
fund is reported with govemmental activities. � 1,602,765
Some items reported in the statement of activities do not require the use of
current financial resources and,therefore,are not reported as expenditures
in governmenta.l funds. These activities consist of
Net change in accrued interest $ (56,927)
Amortization of deferred outflows (48,124)
Amortization of bond premiums 630,546
Change in compensated absences (30,363)
Change in net pension asset 35,942,446
Change in opeb liability 15,218,902
Change in deferred outIIows related to pensions 14,602,207
Change in defened outIlows related to opeb 441,914
Change in defened inflows related to pensions (36,434,027)
Change in deferred inflows related to opeb (16,527,234)
Tota1 additional expenditures 13,739,340
Change in net position of governmental activities $ 39,298,997
The accompanying notes are an integral part of these financial statements. -23 -
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
REVENUES:
Taxes:
Property taxes-real estate $ 26,500,000 $ 26,854,000 $ 26,802,730 $ (51,270)
Property taxes-utility 425,000 413,088 413,088 0
Interest and penalty on taxes 230,000 230,000 215,814 (14,186)
In lieu of taxes 1,100,000 927,128 927,129 1
Local sales tax 11,200,000 12,900,000 14,076,404 1,176,404
Wholesale beer tax 1,550,000 1,550,000 1,539,027 (10,973)
Gross receipts tax 1,425,000 1,425,000 1,811,165 386,165
Franchise taxes-gas 425,000 425,000 573,803 148,803
Franchise taxes-charter 525,000 525,000 464,965 (60,035)
Total taxes $ 43,380,000 $ 45,249,216 $ 46,824,125 $ 1,574,909
Licenses and permits:
Beer licenses $ 4,000 $ 4,000 $ 1,167 $ (2,833)
Beer renewal fee 15,500 15,500 14,825 (675)
Liquor renewal license 40,000 40,000 34,275 (5,725)
Alcohol inspection fee 650,000 650,000 618,442 (31,558)
Building permits 425,000 438,238 629,778 191,540
Electrical permits 25,000 113,375 97,102 (16,273)
Electricians'licenses 18,000 18,000 13,800 (4,200)
Mechanical permits 23,000 23,000 24,906 1,906
Mechanicallicenses 9,000 9,000 4,650 (4,350)
Plumbingpermits 49,000 58,157 75,233 17,076
Plumbing licenses 10,000 10,000 7,300 (2,700)
Natural gas permits 5,000 5,000 7,525 2,525
Street cut permits 75,000 75,000 54,956 (20,044)
Rezoning fee 0 1,500 2,400 900
Pud rezoning fee 8,000 8,000 13,100 5,100
Zoning appeal fee 3,000 3,000 1,050 (1,950)
Zoning letter fee 1,200 1,200 150 (1,050)
Minor encroachment fee 500 500 0 (500)
Certificate of appropriateness 1,000 1,000 800 (200)
Recreation permits and maintenance fee 9,000 9,000 9,165 165
Plat review fee 4,500 4,500 5,342 842
Plans review fee 40,000 40,000 0 (40,000)
Certificate of occupancy 12,000 12,000 16,575 4,575
Alley or street abandonment fee 300 300 0 (300)
Miscellaneous fees 0 0 131 131
Wrecker permit fees 1,500 1,500 1,900 400
Taxicab driver fees 500 500 0 (500)
Total licenses and permits $ 1,430,000 � 1,542,270 $ 1,634,572 $ 92,302
Intergovernmental revenues:
Federal grant-protecrive vest $ 0 $ 0 $ 2,936 $ 2,936
Police training supplement 84,000 75,200 75,200 0
Fire training supplement 60,000 78,400 78,400 0
The accompanying notes aze an integral part of these financial statements. -24-
CITY OF CLEVELAND,TENNESSEE
GENERAL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-(Continued):
Intergovernmental revenues-(Continued):
State-Highway Safety Grant $ 0 $ 61,663 $ 45,936 $ (15,727)
State-Child Safety Grant 0 4,392 4,392 0
State sales tax 3,950,000 4,250,000 5,407,704 1,157,704
State income tax 0 0 10,411 10,411
State beer tax 20,000 20,000 21,631 1,631
State mixed drink tax 145,000 145,000 184,522 39,522
State gas inspection tax 91,500 91,500 86,406 (5,094)
State sports gam.ing 10,000 21,289 47,621 26,332
State highway maintenance tax 175,000 175,000 171,816 (3,184)
TVA-In lieu of taxes 500,000 500,000 492,447 (7,553)
Excise tax 200,000 315,395 315,395 0
Total intergovernmental revenues $ 5,235,500 $ 5,737,839 $ 6,944,817 $ 1,206,978
Fines and forfeitures:
Traffic tickets $ 300,000 $ 150,000 $ 41,722 $ (108,278)
Parking tickets 10,000 10,000 3,965 (6,035)
Animal Control tickets 1,500 1,500 641 (859)
Code enforcement fines 2,500 2,500 1,500 (1,000) ,
Beer fines 0 0 1,099 1,099
Fines and costs partial payments 0 0 1,669 1,669
Court clerk fees 7,000 168,459 201,877 33,418
Drug fines 21,000 21,000 23,417 2,417
Sessions court 55,000 55,000 70,484 15,484
Circuit court 15,000 15,000 9,491 (5,509)
Officers-sessions court 84,000 84,000 81,511 (2,489)
Officers-circuit court 7,500 7,500 9,821 2,321
State refunds 6,000 6,000 2,475 (3,525)
Sex offender registry 10,000 10,000 10,351 351
Total fines and forfeitures $ 519,500 $ 530,959 $ 460,023 $ (70,936)
Charges for services:
Police protection $ 50,000 $ 50,000 $ 50,000 $ 0
Fire inspecrion fees 2,000 2,000 1,950 (50)
Police accidents report 8,500 8,500 0 (8,500)
Police department contracted services 0 76,560 90,795 14,235
Contracted services E911 150,100 150,100 142,343 (7,757)
Jetport maintenance 0 15,000 15,000 0
Fleet Management-city services 110,000 110,000 30,739 (79,261)
Fleet Management-outside services 75,000 75,000 2,496 (72,504)
Stormwater fees 105,000 105,000 105,000 0
GIS services stormwater 30,000 30,000 30,000 0
GIS services 911 center 6,000 6,000 6,000 0
Animal Control-boarding fees 45,000 45,000 38,860 (6,140)
Tinsley pool gate 12,000 12,000 5,387 (6,613)
Tinsley pool concessions 5,000 5,000 0 (5,000)
Tinsley pool rental 2,500 2,500 0 (2,500)
The accompanying notes are an integral part of these financial statements. -25-
CITY OF CLEVELAND,TENNESSEE
GENERAL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FLJND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-(Continued):
Charges for services-(Continued):
Tinsley Park concessions $ 5,000 $ 7,461 $ 11,884 $ 4,423
Tinsley Park rental 500 500 150 (350)
Cleveland Community Center 15,000 15,000 781 (14,219)
College Hill concessions 10,000 10,000 9,361 (639)
College Hill cheerleading 3,000 3,000 0 (3,000)
Recreational progam fees 25,000 103,757 109,375 5,618
College Hill program fees 4,000 4,000 6,098 2,098
Community Center program fees 0 0 10,392 10,392
Park and recreation miscellaneous 0 9,683 9,684 1
SRO-schools 350,000 350,000 381,077 31,077
Jetport-Jet fuel 0 1,334,000 1,093,287 (240,713)
Jetport-ground/land lease 153,000 148,000 131,111 (16,889)
Jetport T/hangar rent 35,000 136,500 138,581 2,081
Jetport terminal bldg rental 7,000 9,154 11,074 1,920
Jetport-rie downs 0 2,520 3,055 535
Jetport community hangars 24,000 30,000 30,000 0
Jetport donarions 17,500 0 0 0
Jetport video adv 5,000 5,000 0 (5,000)
Jetport flight rental 0 3,300 0 (3,300)
Jetport special events 0 4,000 0 (4,000)
3etport incidentals 0 10,940 17,330 6,390
Fuel flowage fee(.12 cents) 35,000 24,442 32,820 8,378
Variable rent-CFM(.10 cents) 27,000 0 0 0
Jetport-community hangars N14 0 30,000 24,128 (5,872)
Total chazges for services $ 1,317,100 $ 2,933,917 $ 2,538,758 $ (395,159)
Interest:
Interest-checking $ 0 $ 45,000 $ 83,262 $ 38,262
Total interest $ 0 $ 45,000 $ 83,262 $ 38,262
Miscellaneous revenues:
Sale of plans $ 0 $ 0 $ 250 $ 250
Sale of scrap metal 0 0 5,806 5,806
Sale ofvehicles 0 0 26,150 26,150
Waterville lease 0 0 100 100
Donations-memorial tree fund 0 8,734 9,335 601
Old timers banquet 3,000 3,000 0 (3,000)
Sign and decal reimbursement 2,500 2,500 3,694 1,194
Donations-Cleveland fire deparhment 0 1,250 1,250 0
Donations-Cleveland police deparhnent 0 0 144 144
TML safety grant matching 4,000 3,852 3,852 0
TML package bonus 5,000 5,000 5,000 0
TML driver safety grant 5,000 4,800 4,801 1
TML property conservation grant 0 3,925 3,925 0
Greenway Pavilion rental 5,000 7,340 9,815 2,475
Greenway benches donations 0 9,475 9,475 0
Miscellaneous insurance 0 11,580 11,805 225
The accompanying notes are an integral part of these financial statements. -26-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Acival (Negative)
Revenues-(Continued):
Miscellaneous revenues-(Continued):
Animal Control donations $ 0 $ 0 $ 111 $ 111
Animal Control pet adoptions 0 1,467 2,042 575
TML reimbursement for police vehicles 0 0 770 770
Fire miscellaneous reports 0 0 95 95
TML reimbursement for property damage 0 9,963 16,073 6,110
TML salary reimbursement 0 0 7,617 7,617
Miscellaneous income 79,900 79,900 1,022 (78,878)
Sundry income-clerk and master 16,000 16,000 9,825 (6,175)
Other sundry 0 30,550 1,804 (28,746)
Total miscellaneous revenues $ 120,400 $ 199,336 $ 134,761 $ (64,575)
Total revenues $ 52,002,500 $ 56,238,537 $ 58,620,318 $ 2,381,781
Expenditures:
Current:
General government:
Legislative and judicial:
Salaries-administrative $ 209,700 $ 209,700 $ 194,452 $ 15,248
Service awards 900 900 825 75
Longevity 4,300 4,300 5,963 (1,663)
Sold vacations 3,800 3,800 3,768 32
Chris�nas bonus 500 500 325 175
Sick pay incentive 300 300 275 25
Dental insurance 6,800 6,800 6,044 756
Social security 17,000 17,000 14,442 2,558
Health insurance 103,200 103,200 91,563 11,637
Retirement 37,900 37,900 24,037 13,863
Life and disability insurance 2,500 2,500 1,465 1,035
Vision insurance 1,600 1,600 671 929
Election 15,000 9,722 0 9,722
Postage 500 500 112 388
Subscriptionsandmemberships 2,500 2,500 2,161 339
Advertising 2,000 2,000 1,283 717
Telephone and pager 20,000 20,000 19,421 579
Contracted services 2,500 2,500 174 2,326
Professional services 0 14,778 11,658 3,120
Equipment maintenance 1,000 900 0 900
Building and grounds maintenance 2,000 2,000 1,027 973
Emergency repairs 2,500 2,500 0 2,500
Professional development 2,500 3,000 2,904 96
Departmental work sessions 4,000 1,000 197 803
Office 8,000 6,000 5,196 804
Insurance-general liability 2,500 981 981 0
Insurance-worker's compensation 800 306 306 0
Employee appreciation 2,000 922 0 922
The accompanying notes are an integral part of these financial statements. -27-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLIND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
General government-(Continued):
Legislarive and judicial-(Continued):
Miscellaneous $ 500 $ 500 $ 0 $ 500
Equipment 1,000 1,000 570 430
Hardware 1,000 1,100 1,100 0
Total legislative and judicial $ 458,800 $ 460,709 $ 390,920 $ 69,789
Administration:
Salaries $ 321,650 $ 321,650 $ 326,073 $ (4,423)
Overtime wages 1,000 1,000 0 1,000
Part time wages 3,500 3,500 0 3,500
Service awards 75 75 75 0
Longevity 3,000 3,000 2,775 225
Sold vacations 9,500 9,500 6,988 2,512
Christmas bonus 400 400 351 49
College pay 500 500 0 500
Sick pay incentive 900 900 975 (75)
Dental insurance 3,200 3,200 3,575 (375)
Social security 26,420 26,420 23,592 2,828
Health insurance 52,700 52,700 63,516 (10,816)
Retirement 60,220 60,220 58,971 1,249
Life and disability insurance 5,900 5,900 3,015 2,885
Vision insurance 500 500 418 82
Employee assistance program 9,500 9,500 0 9,500
Laundry and dry cleaning 2,600 2,600 167 2,433
Postage 2,000 2,000 1,090 910
GPS service 200 200 119 81
Publiceducationprograms 8,000 6,000 807 5,193
Subscriptions and memberships 5,000 5,000 3,255 1,745
Advertising 6,000 6,000 706 5,294
Utilities 20,000 20,000 10,579 9,421
Telephone 13,000 8,000 3,591 4,409
Professional services 30,000 35,000 3,891 31,109
Vehicle maintenance 1,000 1,000 130 870
Building and grounds maintenance 13,100 17,500 13,011 4,489
Car allowance 4,200 4,200 4,450 (250)
Professional development 4,000 9,000 7,127 1,873
Departinent work sessions 1,000 3,000 1,596 1,404
Office supplies 14,500 14,780 3,721 11,059
Uniforms 150 150 555 (405)
Gasoline 1,500 500 533 (33)
Insurance-buildings and contents 7,000 7,000 7,894 (894)
Insurance-vehicles 500 239 239 0
Insurance-general liability 5,500 1,486 1,486 0
Insurance-worker's compensation 2,500 636 523 113
The accompanying notes are an integral part of these financial statements. -28-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
General government-(Continued):
Adminislration-(Continued);
Insurance-professional liability $ 38,000 $ 33,623 $ 33,623 $ 0
Security 1,000 1,000 0 1,000
Building 12,500 12,500 0 12,500
Equipment 0 12,300 10,200 2,100
Hardware 3,000 23,000 20,143 2,857
Total administration $ 695,215 $ 725,679 $ 619,760 $ 105,919
Finance:
Salaries $ 508,080 $ 506,336 $ 490,985 $ 15,351
Overtime wages 20,000 20,000 8,445 11,555
Service awards 300 275 275 0
Longevity 7,500 7,844 7,844 0
Sold vacations 8,600 8,600 5,215 3,385
Chrislmas bonus 1,000 975 975 0
Sick pay incentive 2,100 2,060 1,775 285
Dental insurance 5,700 5,700 4,668 1,032
Social security 40,780 40,780 38,556 2,224
Health insurance 106,800 106,800 108,773 (1,973)
Retirement 91,500 91,500 89,207 2,293
Life and disability insurance 6,200 6,200 5,568 632
Vision insurance 1,500 1,500 971 529
Pre-employment 0 90 90 0
Laundry and dry cleaning 600 600 6 594
Postage 9,000 9,000 5,089 3,911
GP5 service 200 200 24 176
Subscriptions and memberships 2,000 2,000 2,092 (92)
Advertising 4,500 4,500 1,453 3,047
Utilities 12,000 12,000 8,506 3,494
Telephone 10,500 10,500 9,225 1,275
Legal fees 91,000 91,000 61,437 29,563
Audit fees 49,000 49,000 51,000 (2,000)
Reappraisal fee 55,000 55,000 58,109 (3,109)
Professional services 20,000 20,000 7,500 12,500
Vehicle maintenance 500 500 0 500
Building and grounds maintenance 12,500 9,900 3,890 6,010
Car allowance 4,200 4,200 4,450 (250)
Professional development 7,000 7,000 3,446 3,554
Department work sessions 1,000 1,000 110 890
Credit card fees 55,000 55,000 41,926 13,074
Office 35,500 35,500 30,546 4,954
OSHA supplies 100 100 5 95
Uniforms 0 1,400 1,400 0
Gasoline and oil 300 300 385 (85)
The accompanying notes are an integral part of these financial statements. -29-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENLTES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
General government-(Continued):
Finance-(Continued):
Insurance-buildings and contents $ 800 $ 800 $ 785 $ 15
Insurance-vehicles 300 239 239 0
Insurance-general liability 3,300 2,919 2,919 0
Insurance-worker's compensation 700 365 253 112
Insurance-professional liability 34,200 33,623 33,623 0
Insurance-employee bonds 200 200 50 150
Miscellaneous 500 500 0 500
Bad debt 45,000 45,000 15,561 29,439
Equipment 5,000 5,000 819 4,181
Hardware 7,000 7,836 3,289 4,547
Software 98,400 98,400 0 98,400
Total finance $ 1,365,360 $ 1,362,242 $ 1,111,484 $ 250,758
Human Resources:
Salaries $ 221,250 $ 221,250 $ 231,120 $ (9,870)
Overtime 1,000 1,000 0 1,000
Part time employees 10,500 10,500 10,400 100
Longevity 2,900 2,900 2,850 50
Sold vacation 6,300 6,300 4,014 2,286
Christmas bonus 500 500 433 67
College pay 300 300 280 20
Sick pay incentive 900 900 575 325
Dental insurance 1,100 1,100 923 177
Social security 18,850 18,850 19,029 (179)
Health insurance 25,500 25,500 26,657 (1,157)
Retirement 39,480 39,480 42,315 (2,835)
Life and disability insurance 3,500 3,500 2,465 1,035
Vision insurance 300 300 194 106
Employee assistance 19,200 19,200 17,600 1,600
Flex spending-City wide 15,000 15,000 11,654 3,346
Laundry and dry cleaning 300 300 126 174
Drug and alcohol testing 8,000 8,000 2,215 5,785
Telephone 3,000 3,000 3,331 (331)
Professional services 5,000 5,000 8,234 (3,234)
Equipment maintenance 12,000 10,550 10,503 47
Building and grounds maintenance 4,500 3,500 2,975 525
Car allowance 4,200 4,200 4,450 (250)
Professional development 2,000 4,260 4,247 13
Recruitment and training 3,000 1,140 1,278 (138)
Office supplies 3,000 5,350 5,400 (50)
OSHA supplies 100 105 5 100
Uniforms 700 700 700 0
Gasoline and oil 300 0 0 0
Grants 21,000 24,577 25,410 (833)
The accompanying notes are an integral part of these financial statements. -30-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Vaziance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
General government-(Continued):
Human Resources-(Continued):
Insurance-general liability $ 1,000 $ 978 $ 978 $ 0
Insurance-workers comp 1,000 215 103 112
Employee appreciation 18,000 19,213 19,129 84
Equipment 1,000 1,000 0 1,000
Hardware 3,000 3,000 65 2,935
Total human resources $ 457,680 $ 461,668 $ 459,658 $ 2,010
Information Technology:
Salaries $ 355,100 $ 355,100 $ 372,636 $ (17,536)
Overtime wages 16,000 16,000 16,999 (999)
Part-t'vne wages 10,400 10,400 8,004 2,396
Service awards 200 200 150 50
Longevity wages 4,800 4,800 4,800 0
Sold vacarion pay 11,000 11,000 4,018 6,982
Christmas bonus 600 600 541 59
Sick pay incentive 1,200 1,200 950 250
Dental insurance 2,900 2,900 2,532 368
Social security taxes 29,920 29,920 29,805 115
Health insurance 67,200 67,200 68,672 (1,472)
Retirement 67,000 67,000 70,829 (3,829)
Life/disability insurance 4,600 4,600 4,102 498
Vision insurance 800 800 523 277
Laundry and dry cleaning 1,200 5 5 0
GPS service 300 300 144 156
Subscriptions and memberships 1,000 0 0 0
Telephone 8,000 8,000 13,165 (5,165)
GIS Services 71,600 62,530 61,741 789
Vehicle maintenance 500 500 16 484
Car allowance 4,200 4,200 4,450 (250)
Professional development 4,000 0 0 0
Dept work sessions 500 300 299 1
Office supplies 500 700 682 18
Uniforms 1,800 1,800 1,750 50
Gasoline 1,000 500 210 290
Insurance-vehicles 500 441 441 0
Insurance-general liability 3,800 2,743 2,743 0
Insurance-workers compensation 500 3,535 3,422 113
Miscellaneous 500 1,122 0 1,122
Hardware 10,000 16,073 15,183 890
Soflware 259,000 284,000 283,799 201
Total informarion technology $ 940,620 $ 958,469 $ 972,611 $ (14,142)
Tota1 general government $ 3,917,675 $ 3,968,767 $ 3,554,433 $ 414,334
The accompanying notes are an integral part of these financial statements. -31 -
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND (Continued)
STATEMENT OF REVENiIES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Development and engineering:
Development and engineering operations:
Salaries $ 948,100 $ 948,100 $ 893,557 $ 54,543
Overtime wages 500 500 0 500
Service awards 100 425 425 0
Longevity 14,900 16,050 16,041 9
Sold vacations 20,000 20,000 14,953 5,047
Christmas bonus 1,800 1,800 1,446 354
College pay 700 700 625 75
Sick pay incentive 4,000 2,525 2,525 0
Dental insurance 13,700 13,700 12,110 1,590
Social security 74,600 74,600 66,838 7,762
Health insurance 255,500 251,300 216,612 34,688
Retirement 167,750 170,550 163,533 7,017
Life and disability insurance 12,500 12,500 10,750 1,750
Vision insurance 3,400 3,400 1,517 1,883
Educarion reimbursement 2,500 2,500 0 2,500
Worker's compensation claims 1,000 1,000 240 760
Laundry and dry cleaning 2,800 2,800 1,446 1,354
Postage 1,200 1,200 221 979
GPS services 2,500 2,500 1,362 1,138
Public education programs 1,000 1,000 1,000 0
Subscriptions and memberships 5,000 5,000 2,748 2,252
Advertising 3,000 8,000 7,589 411
Utiliries 17,000 17,000 17,062 (62)
Telephone 22,000 24,000 24,100 (100)
Professional services 23,400 8,000 5,864 2,136
Permits&fees 3,000 2,000 1,326 674
Vehicle maintenance 6,000 5,000 2,598 2,402
Office equipment maintenance 7,000 7,000 5,520 1,480
Building and grounds maintenance 19,800 15,800 14,540 1,260 �
Car allowance 4,200 4,200 4,005 195
Professional development 4,000 3,900 2,146 1,754
Departmental work session 4,000 6,000 4,174 1,826
Credit card fees 12,700 18,200 18,171 29
Landfill 30,000 28,900 28,893 7
Office supplies 13,000 15,000 14,500 500
Operating 3,000 1,000 959 41
OSHA first aid kits 300 300 76 224
Uniforms 2,000 6,000 5,723 277
Gasoline and oil 5,000 6,000 6,020 (20)
Insurance-buildings and contents 2,100 3,800 3,789 11
Insurance-vehicles and equipment 2,600 2,686 2,686 0
Insurance-generalliability 4,100 3,811 3,811 0
Insurance-worker's compensation 5,800 1,142 1,003 139
Insurance-employee bonds 100 50 50 0
The accompanying notes are an integral part of these financial statements. -32-
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND . (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Development and engineering-(Continued):
Development and engineering operations-(Continued):
Miscellaneous $ 0 $ 1,450 $ 1,423 $ 27
Vehicles 0 0 30,525 (30,525)
Furniture 0 1,400 1,332 68
Equipment 2,000 7,400 7,357 43
Hardware 3,000 6,600 6,653 (53)
Softwaze 50,000 41,000 4,851 36,149
Total development and engineering operation:$ 1,782,650 $ 1,777,789 $ 1,634,695 $ 143,094
Codes Enforcement Division:
Salaries $ 147,300 $ 150,500 $ 147,471 $ 3,029
Overtime wages 1,000 50 20 30
Service awards 300 0 0 0
Longevity pay 3,600 3,600 3,600 0
Sold vacarion 1,600 1,600 0 1,600
Christinas bonus 400 400 325 75
Sick pay incentive 900 200 200 0
Dental insurance 1,100 1,350 1,238 112
Social security tax 12,100 11,500 11,412 88
Health insurance 36,000 34,150 34,121 29
Retirement 27,130 27,255 27,250 5
Life and disability insurance 1,700 1,900 1,837 63
Vision insurance 400 400 267 133
Laundry and dry cleaning 1,000 900 890 10
Postage 1,000 500 496 4
GPS services 600 600 526 74
Advertising 1,000 0 0 0
Telephone 4,500 5,698 5,638 60
Vehicle maintenance 3,000 5,088 5,080 8
Small equipment repairs/replacement 500 500 482 18
Professional development 2,000 725 708 17
Office supplies 2,000 1,350 1,184 166
Uniforms 1,500 3,006 3,006 0
Gasoline 2,000 2,800 2,788 12
Insurance-vehicles 700 660 660 0
Insurance-worker's compensation 6,100 3,404 3,165 239
Vehicles 0 0 33,881 (33,881)
Furniture 0 1,343 1,343 0
Hardware 2,000 1,728 1,728 0
Total codes enforcement division $ 261,430 $ 261,207 $ 289,316 $ (28,109)
Total Development and Engineering $ 2,044,080 $ 2,038,996 $ 1,924,011 $ 114,985
The accompanying notes are an integral part of these financial statements. -33-
CITY OF CLEVELAND,TBNNESSEE
GENERAL FLJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public safety:
Police depariment:
Salaries $ 6,054,120 $ 6,092,620 $ 5,811,875 $ 280,745
Overtime wages 300,000 300,000 257,326 42,674
Part time wages 123,900 123,900 120,835 3,065
Supplemental pay 1,800 800 602 198
State grant-in service training 84,000 75,200 75,200 0
Extra duty pay 0 76,560 67,598 8,962
Service awards 2,450 2,600 2,600 0
Longevity 82,350 83,900 83,888 12
Sold vacations ' 80,000 84,075 � 84,024 51
Christrnas bonus 14,100 14,100 13,752 348
College pay 1,030 1,030 1,030 0
Sick pay incentive 30,000 26,775 26,775 0
Dental insurance 73,000 73,000 69,332 3,668
Social security 518,220 518,220 476,707 41,513
Health insurance 1,618,800 1,618,800 1,575,513 43,287
Retirement 1,357,150 1,357,150 1,284,967 72,183
Life and disability insurance 63,000 65,800 65,800 0
Vision insurance 17,900 15,100 12,059 3,041
Unemployment compensation 500 500 0 500
Education reimbursement 14,500 12,950 � 7,632 5,318
Worker's compensation claims 9,000 9,000 7,203 1,797
Laundry and dry cleaning 18,000 18,000 16,968 1,032
Employee physicals 12,000 12,000 8,266 3,734
Pre-employment tests 3,500 3,500 2,098 1,402
Postage 1,200 1,200 999 201
GPS service 20,000 20,000 17,705 2,295
Radio communications 7,500 2,890 2,868 22
Public education programs 3,000 3,500 3,457 43
Subscriptions and memberships 3,000 3,000 1,684 1,316
Accreditation 11,000 8,100 2,866 5,234
Investigative funds 1,500 1,500 0 1,500
Advertising 500 500 0 500
Utilities 71,400 66,400 65,121 1,279
Telephone 124,000 124,000 124,079 (79)
Contracted services 2,000 2,000 2,000 0
Vehicle maintenance 155,000 143,000 144,351 (1,351)
Equipment maintenance 2,000 2,000 349 1,651
Specialized equipment maintenance 70,000 65,000 59,754 5,246
Professional development 65,000 65,000 54,480 10,520
Recruiting 9,000 7,700 7,208 492
Deparhnent work sessions 3,000 3,000 2,992 8
Protective vests 26,000 18,500 18,001 499
Crime scene unit supplies 7,000 6,000 5,931 69
The accompanying notes are an integral part of these financial statements. -34-
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public safety-(Continued):
Police department-(Continued):
SRT supplies $ 12,000 $ 12,000 $ 11,587 $ 413
Office 31,000 36,000 34,012 1,988
Operating supplies 15,000 36,092 34,020 2,072
OSHA safeiy supplies 2,000 1,000 546 454
Uniforms 68,500 66,500 64,950 1,550
Ammunition 38,000 42,560 25,658 16,902
Gasoline and oil 185,000 241,000 251,893 (10,893)
Sex offender registry 0 7,879 4,941 2,938
Canine fees 6,000 6,000 4,836 1,164
Volunteer services 2,500 2,360 1,878 482
Insurance-buildings and contents 18,000 18,972 18,972 0
Insurance-vehicles and equipment 103,000 108,122 108,122 0
Insurance-general liability 83,000 86,776 86,776 0
Insurance-worker's compensation 200,000 219,773 210,525 9,248
Insurance-employee bonds 500 500 300 200
Equipment 70,000 515,855 487,532 28,323
Hazdware 35,000 42,500 42,441 59
Software 76,600 85,870 81,570 4,300
Total police department $ 12,007,520 $ 12,658,629 $ 12,056,454 $ 602,175
Fire depariment:
Salaries $ 5,877,460 $ 5,867,460 $ 5,724,209 $ 143,251
Overtime wages 258,000 287,500 361,942 (74,442)
Fire runs 4,140 140 0 140
Supplemental pay 81,700 81,700 77,278 4,422
State grant-in service training 82,400 76,800 76,800 0
Service awards 3,560 3,560 3,325 235
Longevity 85,650 80,150 80,145 5
Sold vacations 65,000 43,955 23,244 20,711
Christmas bonus 11,700 10,600 10,503 97
College pay 200 200 125 75
Sick pay incentive 25,200 25,200 21,200 4,000
Dental insurance 81,500 81,500 72,741 8,759
Social security 498,570 498,570 461,200 37,370
Health insurance 1,539,540 1,539,540 1,639,735 (100,195) •
Retirement 1,429,920 1,429,920 1,319,365 110,555
Life and disability insurance 74,600 74,600 63,560 11,040
Vision insurance 18,000 18,000 11,636 6,364
Education reimbursement 14,400 15,445 15,444 1
Worker's compensation claims 7,800 7,800 2,473 5,327
Laundry and dry cleaning 27,000 27,000 13,243 13,757
The accompanying notes are an integral part of these financial statements. -35 -
CITY OF CLEVELAND,T'ENNESSEE
GENERAL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public safety-(Continued):
Fire department-(Continued):
Immunization and physicals $ 50,000 $ 50,000 $ 42,241 $ 7,759
Pre-employmenttesting 38,800 23,350 8,868 14,482
Postage 500 500 330 170
Radio communications 7,000 7,000 3,149 3,851
Public education programs 4,200 2,200 1,981 219
Subscriptions and memberships 4,200 2,200 2,092 108
Accreditation 4,000 4,000 4,087 (87)
Advertising 600 600 212 388
Utilities 123,800 123,800 125,698 (1,898)
Telephone 63,140 63,140 49,950 13,190
Apparaius equipment testing 5,000 5,000 4,957 43
Vehicle maintenance 100,000 104,093 82,409 21,684
Equipment maintenance 6,000 6,000 5,119 881
Specialized equipment maintenance 4,400 400 282 118
Building and grounds maintenance 70,000 94,700 93,188 1,512
Professional development 15,000 15,000 14,648 352
Training/education material 7,000 7,000 4,010 2,990
Department work sessions 2,000 2,000 1,725 275
Office supplies 9,000 10,600 10,310 290
Operati.ng supplies 15,000 15,000 9,677 5,323
OSHA supplies 3,200 3,200 738 2,462
Medical supplies/equipment 18,000 18,000 11,743 6,257
Uniforms 35,000 30,000 26,634 3,366
Gasoline 48,000 48,000 64,301 (16,301)
PPE equipment gear 100,000 76,690 71,305 5,385
Hazmat supplies 6,000 6,000 1,883 4,117
Honor guard 2,000 1,250 879 371
Insurance-building and contents 16,800 16,800 18,849 (2,049)
Insurance-vehicles and equipment 55,561 58,512 58,512 0
Insurance-general liability 50,228 31,411 31,411 0
Insurance-worker's compensation 140,895 123,579 117,692 5,887
Equipment 60,000 60,497 30,629 29,868
Hardware 16,000 16,000 15,610 390
Software 32,360 30,360 30,325 35
Total fire deparhnent $ 11,300,024 $ 11,226,522 $ 10,923,612 $ 302,910
Animal Control:
Salaries $ 258,650 $ 275,650 $ 272,909 $ 2,741
Overtime wages 16,300 16,300 7,629 8,671
Service awards 75 75 75 0
The accompanying notes are an integral part ofthese financial statements. -36-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued): '
Public safety-(Continued):
Animal Control-(Continued):
Longevity $ 3,900 $ 3,975 $ 3,975 $ 0
Sold vacations 4,500 4,500 3,266 1,234
Chrisimas bonus 650 650 650 0
Sick pay incentive 1,625 1,550 1,375 175
Dental insurance 4,200 4,200 3,203 997
Social security 21,540 21,540 21,730 (190)
Health insurance 77,000 72,500 65,154 7,346
Retirement 43,540 48,040 47,533 507
Life and disability insurance 3,200 3,200 2,907 293
Vision insurance 1,000 1,000 574 426
Worker's compensation claims 1,500 1,500 104 1,396
Laundry and dry cleaning 2,000 2,000 314 1,686
Employee physicals 1,150 1,150 95 1,055
Postage 200 200 120 80
GPS services 1,900 1,900 860 1,040
Radio communications 500 500 0 500
Subscriptions and memberships 750 750 170 580
Advertising 300 300 0 300
Utilities and pager 9,700 9,700 7,204 2,496
Telephone 9,000 9,000 8,084 916
Spay and neuter 45,000 45,000 46,848 (1,848)
Veterinary 30,000 13,000 9,941 3,059
Vehicle maintenance 7,000 7,000 6,096 904
Building and grounds maintenance 17,000 17,100 16,271 829
Professional development 1,500 1,500 860 640
Credit card fees 1,000 1,000 783 217
Landfill 800 800 716 84
Office 4,050 4,050 2,902 1,148
OSHA safety supplies 500 500 0 500
Uniforms 3,500 3,500 2,997 503
Ammunition 250 250 0 250
Gasoline and oil 7,200 9,100 9,118 (18)
Animal supplies 5,800 7,267 3,976 3,291
Volunteer services 500 500 0 500
Insurance-building and contents 800 800 712 88
Insurance-vehicles and equipment 1,600 1,596 1,596 0
Insurance-general liability 1,500 1,281 1,281 0
Insurance-worker's compensation 4,900 3,243 3,021 222
Equipment 2,000 2,000 1,694 306
Hardware 1,000 1,000 0 1,000
Total animal control $ 599,080 $ 600,667 $ 556,743 $ 43,924
Total public safety $ 23,906,624 $ 24,485,818 $ 23,536,809 $ 949,009
The accompanying notes are an integral part of these financial statements. -37-
CITY OF CLEVELAND,TENNESSEE
GENERAL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Yeaz Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public works:
Operations division:
Salaries $ 997,070 $ 950,687 $ 889,736 $ 60,951
Overtime wages 21,000 22,550 22,526 24
Seasonal leaf employees 25,000 25,000 20,395 4,605
Part time wages 9,200 9,200 9,152 48
Supplemental pay 700 700 600 100
Service awards 0 250 250 0
Longevity 16,425 16,425 18,130 (1,705)
Sold vacations 12,000 12,000 10,351 1,649
Christmas bonus 2,800 2,383 2,382 1
College pay 200 200 125 75
Sick pay incentive 3,700 2,550 2,550 0
Dental insurance 16,000 16,000 12,044 3,956
Social security 82,350 82,350 71,707 10,643
Health insurance 303,000 303,000 234,804 68,196
Retirement 183,690 183,690 155,172 28,518
Life and disability insurance 13,100 13,100 10,013 3,087
Vision insurance 2,900 2,900 1,958 942
Worker's compensation claims 2,000 2,000 982 1,018
Laundry and dry cleaning 600 600 0 600
Pre-employment drug testing 1,600 1,600 621 979
Safety shoes 3,500 2,455 2,455 0
Postage 200 200 43 157
GPS services 6,300 6,300 2,803 3,497
Radio communications 3,000 3,000 2,000 1,000
Subscriptions and memberships 500 500 241 259
Advertising 300 300 152 148
Utilities 40,000 40,000 40,665 (665)
Telephone 21,000 21,000 15,889 5,111
Professional services 3,000 55 0 55
Building and grounds maintenance 13,700 16,640 13,789 2,851
Car allowance 4,200 4,200 4,450 (250)
Professional development 1,500 500 180 320
Departmental work sessions 200 200 0 200
Office 5,200 5,200 5,025 175
Operating supplies 7,000 10,200 8,657 1,543
OSHA supplies 4,000 4,000 2,977 1,023
Uniforms 8,700 8,700 8,398 302
Gasoline and oil 91,000 91,000 87,869 3,131
Repairs and parts 100,000 145,000 139,615 5,385
Sign shop supplies 44,500 49,545 22,784 26,761
Major safety markings 65,000 65,000 65,000 0
The accompanying notes are an integral part of these financial statements. -38-
CITY OF CLEVELAND,TENNESSEE
GENER.AL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public works-(Continued):
Operations division-(Continued)
Thermoplastic contract $ 30,000 $ 30,000 $ 29,999 $ 1
Pavingandmaterials 310,000 341,650 329,479 12,171
Insurance-building and contents 9,000 9,000 8,489 511
Insurance-vehicle and equipment 18,100 17,879 17,879 0
Insurance-general liability 10,600 9,018 9,018 0
Insurance-worker's compensarion 45,000 37,961 35,849 2,112
Employee appreciation 3,000 3,000 2,596 404
Miscellaneous 800 800 480 320
Equipment 3,000 22,500 22,334 166
Hardware 3,000 3,000 2,886 114
Software 2,500 2,500 0 2,500
Total operations division $ 2,551,135 $ 2,598,488 $ 2,345,499 $ 252,989
Street lighting and signals:
Utilities $ 950,000 $ 920,456 $ 796,744 $ 123,712
Traffic light utility service 25,000 25,000 14,769 10,231
Pole attachments 9,000 10,200 10,118 82
ITS maintenance services 50,000 49,350 44,552 4,798
Traffic light repair maintenance 721,000 721,000 699,943 21,057
Equipment 10,000 69,544 69,505 39
Total street lighting and signals $ 1,765,000 $ 1,795,550 $ 1,635,631 $ 159,919
Cleveland Regional Jetport Operations: �
Salaries $ 98,030 $ 98,030 $ 90,295 $ 7,735
Part time salaries 7,500 7,500 5,715 1,785
Service awards 100 0 0 0
Longevity pay 675 675 675 0
Sold vacations 1,800 0 0 0
Christmas bonus 200 109 108 1
Sick pay incentive 300 250 250 0
Dental insurance 800 800 649 151
Social security tax 8,740 8,740 7,549 1,191
Health insurance 17,000 17,530 17,529 1
Retirement 18,180 18,180 16,859 1,321
Life and disability insurance 1,200 1,200 898 302
Vision insurance 200 200 129 71
Worker's compensation claims 250 254 253 1
Laundry and dry cleaning 250 150 0 150
Postage 300 300 73 227
Subscriptions and memberships 1,500 1,230 1,229 1
The accompanying notes are an integral part of these financial statements. -39-
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND (Continued)
STATEMENT OF REVENITES,EXPENDITURES AND CHANGES
1N FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negarive)
Expenditures-(Continued):
Current-(Continued):
Public works-(Continued):
Cleveland Regional Jetport Operations-(Continued):
Advertising $ 3,000 $ 2,070 $ 2,025 $ 45
Utilities 43,400 43,400 36,586 6,814
Telephone 11,800 16,300 15,057 1,243
Contracted services 36,000 333,900 271,300 62,600
Professional services 20,000 880 866 14
Building and grounds maintenance 20,000 35,534 34,004 1,530
Car allowance 4,200 4,500 4,450 50
Professional development 1,500 50 50 0
Department work sessions 500 0 0 0
Credit card fees 400 400 332 68
Office 1,000 1,000 546 454
Operating supplies 500 513 512 1
Uniforms 350 350 350 0
Gasoline 1,000 4,500 3,961 539
Repairs and parts 7,500 11,150 9,784 1,366
Avgas and jet fuel purchases 0 1,037,000 873,141 163,859
Insurance-building and contents 14,000 16,960 16,958 2
Insurance-vehicles and equipment 300 300 0 300
Insurance-worker's compensation 2,500 1,582 1,582 0
� Equipment 1,700 5,620 5,620 0
Hardware 3,000 3,000 1,842 1,158
Software 200 200 0 200
Total Clevelandregional jetport $ 329,875 $ 1,674,357 $ 1,421,177 $ 253,180
Fleet management:
Salaries $ 374,360 $ 374,360 $ 366,774 $ 7,586
Overtime wages 6,000 6,000 4,033 1,967
Service awards 300 300 300
Longevity wages 7,800 7,800 7,725 75
Sold vacation pay 8,600 8,600 9,565 (965)
Christrnas bonus 700 700 650 50
Sick pay incentive 800 800 775 25
Dental insurance 3,600 3,600 3,181 419
Social security taxes � 30,550 30,550 28,159 2,391
Health insurance 70,000 70,000 76,985 (6,985)
Retirement 68,500 68,500 67,390 1,110
Life/disability insurance 4,600 4,600 4,089 511
Vision insurance 900 900 652 248
Worker's compensation claims 500 500 0 500
Posta.ge 200 200 113 87
Subscriptions and memberships 4,200 371 216 155
Advertising 200 0 0 0
The accompanying notes are an integral part of these financial statements. -40-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
� Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public works-(Continued):
Fleet management-(Continued):
Utilities $ 23,500 $ 23,500 $ 21,370 $ 2,130
Telephone 8,200 8,200 6,909 1,291
Contracted services 30,000 17,434 0 17,434
Vehicle maintenance 500 500 583 (83)
Equipment maintenance 4,000 5,800 5,259 541
Building and grounds maintenance 7,000 11,220 11,120 100
Professional development 500 0 0 0
Office supplies 2,000 2,000 1,647 353
OSHA supplies 2,500 1,112 1,069 43
Uniform 2,500 2,205 2,204 1
Gasoline 3,000 2,500 2,413 87
Repairs and parts 2,500 0 0 0
Insurance-building and contents 3,700 4,054 4,053 1
Insurance-vehicles and equipment 1,300 1,481 1,481 0
Insurance-general liability 1,900 1,490 1,490 0
Insurance-worker's compensation 7,300 6,795 6,461 334
Equipment 1,000 8,400 8,190 210
Hardware 1,000 1,838 1,838 0
Software 12,800 19,966 19,909 57
Total fleet management $ 697,010 $ 696,276 $ 666,603 $ 29,673
Landscaping maintenance:
Salaries $ 434,310 $ 434,310 $ 445,022 $ (10,712)
Overtime wages 4,500 2,000 2,261 (261)
Part time 20,000 3,000 1,982 1,018
Service awards 250 250 250 0
Longevity 9,200 9,000 9,000 0
Sold vacations 3,400 3,850 3,848 2
Christmas bonus 1,000 975 975 0
Sick pay incentive 2,700 1,750 1,750 0
Dental insurance 5,900 5,900 4,422 1,478
Social security 36,010 36,010 34,516 1,494
Health Insurance 117,500 117,500 95,329 22,171
Retirement 78,280 78,280 80,492 (2,212)
Life and disability insurance 5,600 5,600 4,888 712
Vision insurance 1,500 1,500 859 641
Worker's compensation claims 1,000 2,725 2,723 2
Pre-employment testing 200 0 0 0
Postage 50 50 22 28
GPS Services 4,700 4,700 2,529 2,171
Subscriptions and memberships 500 0 0 0
Utilities 4,000 4,000 4,111 (111)
Telephone 6,400 6,400 4,141 2,259
The accompanying notes are an integral part of these financial statements. -41 -
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND (Continued)
STATEMENT OF RE�ENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public works-(Continued):
Landscaping maintenance -(Continued): �
Contracted mowing $ 25,000 $ 29,150 $ 31,000 $ (1,850)
Vehicle maintenance 33,000 48,000 47,818 182
Equipment maintenance 1,300 1,300 1,028 272
Car allowance 4,200 4,200 4,450 (250)
Professional development 2,000 600 570 30
Departriient work sessions 500 800 868 (68)
Office 500 500 440 60
Operating supplies 9,000 9,000 7,867 1,133
Uniforms 4,100 3,979 3,776 203
Trees 7,000 2,965 2,963 2
Gasoline 14,500 16,875 21,618 (4,743)
Donation 0 23,576 18,421 5,155
Insurance-vehicle and equipment 8,000 8,471 8,471 0
Insurance-generalliability 2,000 1,823 1,823 0
Insurance-worker's compensation 2,700 12,756 12,756 0
Equipment � 1,000 475 474 1
Hardware 1,000 550 53 8 12
Total landscaping maintenance $ 852,800 $ 882,820 $ 864,001 $ 18,819
Total public works $ 6,195,820 $ 7,647,491 $ 6,932,911 $ 714,580
Culture and recreation:
College Hill Recreation Center:
Salaries $ 141,380 $ 141,380 $ 130,305 $ 11,075
Overtime wages 6,000 6,000 6,863 (863)
Part time wages 35,000 35,000 6,995 28,005
Longevity 2,100 2,100 2,100 0
Sold vacations 1,500 2,371 2,370 1
Cluistmas bonus 500 325 325 0
Sick pay incentive 1,000 425 425 0
Dental insurance 1,900 1,900 1,891 9
Social security 15,230 15,230 10,906 4,324
Health insurance 34,500 41,700 41,437 263
Retirement 33,510 25,510 19,407 6,103
Life and disability insurance 1,800 1,800 1,469 331
Vision insurance 500 500 325 175
Unemployment compensation 1,000 56 55 1
Worker's compensation claims 200 200 0 200
Advertising 100 100 100 0
Utilities 62,000 52,000 54,470 (2,470)
Telephone 9,000 9,000 7,711 1,289
Vehicle maintenance 100 0 0 0
Equipment maintenance 1,000 1,000 857 143
The accompanying notes are an integral part of these financial statements. -42-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Culture and recreation-(Continued):
College Hill Recrearion-(Continued):
Building and grounds maintenance $ 35,000 $ 38,440 $ 30,259 $ 8,181
Professional development 2,000 1,125 1,123 - 2
Office 1,800 1,800 1,750 50
Gasoline 400 0 0 0
Pool 15,000 22,619 12,564 10,055
Concession supplies 1,500 0 0 0
Insurance-building and contents 8,100 8,803 8,802 1
Insurance-general liability 4,300 2,476 2,476 0
Insurance-worker's compensation 5,600 497 385 112
Security 1,600 1,600 1,600 0
Program development 20,000 20,000 13,188 6,812
Equipment 0 1,736 1,692 44
Total College Hill Recreation Center $ 443,620 $ 435,693 $ 361,850 $ 73,843
Parks and recreation:
Salaries $ 609,050 $ 609,050 $ 584,898 $ 24,152
Overtime wages 6,000 6,000 17,668 (11,668)
Part time wages 11,000 11,000 3,511 7,489
Service awards 800 800 800
Longevity 9,900 10,013 10,013 0
Sold vacation 7,600 8,167 8,441 (274)
Christmas bonus 1,500 1,408 1,408 0
College pay 125 125 125 0
Sickpayincentive 3,900 3,125 3,125 0
Dental insurance 6,800 6,800 6,209 591
Social security 46,460 46,460 45,634 826
Health insurance 158,100 159,600 163,858 (4,258)
Retirement 105,270 105,270 110,074 (4,804)
Life and disability insurance 6,100 6,100 6,505 (405)
Vision insurance 1,800 1,800 1,170 630
Unemployment compensation 500 0 0 0
Worker's compensation claims 2,000 500 236 264
Laundry and dry cleaning 800 300 94 206
Pre-employment testing 200 200 110 90
Postage 200 40 8 32
GPS services 4,000 4,000 3,504 496
Subscriptions and memberships 800 800 799 1
Advertising 300 300 298 2
Utilities 102,000 102,000 97,819 4,181
Telephone 11,900 11,900 9,680 2,220
Vehicle maintenance 20,000 19,436 15,241 4,195
Equipment maintenance 3,500 3,500 3,500 0
Building and grounds maintenance 100,000 104,750 87,106 17,644
Car allowance 4,200 4,200 4,450 (250)
The accompanying notes are an integral part of these financial statements. -43-
CITY OF CLEVELAND,TENNESSEE
GENERAL FUND (Continued) ,
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Fina1 Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Culture and recrearion-(Continued):
Parks and recreation-(Continued):
Professional development $ 3,000 $ 3,580 $ 2,748 $ 832
Credit card fees 800 700 369 331
Office 1,000 1,000 991 9
Operating supplies 9,000 9,000 9,000 0
Uniforms 4,900 4,770 4,770 0
Gasoline and oil 21,000 21,000 28,325 (7,325)
Donation 0 14,477 9,697 4,780
Insurance-building and contents 12,500 15,729 15,729 0
Insurance-vehicles and equipment 1,800 1,886 1,886 0
Insurance-general liability 10,600 7,443 7,443 0
Insurance-worker's compensation 3,900 7,214 6,441 773
Security 4,500 4,500 4,500 0
Program development 33,000 111,757 111,286 471
Hardware 3,000 5,000 4,577 423
Total parks and recreation $ 1,333,805 $ 1,435,700 $ 1,394,046 $ 41,654
Cleveland Community Center:
Salaries $ 127,250 $ 116,250 $ 90,722 $ 25,528
Overtime wages 6,000 6,000 744 5,256
Part time wages 35,000 35,000 17,933 17,067
Longevity 450 450 450 0
Sold vacations 1,000 0 0 0
Cluistmas bonus 500 325 325 0
Sick pay incentive 1,000 100 100 0
Dental insurance 3,000 3,000 1,961 1,039
Social security 10,900 10,900 7,810 3,090
Health insurance 61,600 61,600 40,740 20,860
Retirement 24,680 24,680 11,013 13,667
Life and disabiliiy insurance 1,600 1,600 1,017 583
Vision insurance 700 700 295 405
Unemployment compensation 2,000 2,000 0 2,000
Worker's compensation claims 200 200 0 200
Advertising 100 100 35 65
Utilities 34,000 34,000 36,412 (2,412)
Telephone 6,700 6,700 4,571 2,129
Vehicle maintenance 100 0 0 0
Equipment repairs 1,000 700 700 0
Building and grounds maintenance 35,000 35,021 31,900 3,121
Professional development 2,000 900 538 362
Office 1,500 1,500 1,500 0
Gasoline 400 300 0 300
Pool 12,000 26,071 23,350 2,721
Insurance-building and contents � 5,400 5,762 5,761 1
The accompanying notes aze an integral part of these financial statements. -44-
CITY OF CLEVELAND,TENNESSEE
GENER.AL FLJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Culture and recreation-(Continued):
Cleveland Community Center-(Continued):
Insurance-general liability $ 3,900 $ 2,251 $ 2,251 $ 0
Insurance-workers compensarion 4,100 1,218 1,106 112
Security 1,300 1,242 1,242 0
Program development 20,000 20,000 11,049 8,951
Miscellaneous 0 0 80 (80)
Equipment 0 2,264 2,194 70
Total Cleveland Community Center $ 403,380 $ 400,834 $ 295,799 $ 105,035
Tinsley Park:
Salazies $ 170,000 $ 0 $ 0 $ 0
Overtime 10,000 10,000 14,768 (4,768)
Part-time wages 0 170,000 107,611 62,389
Social security 15,600 15,600 9,362 6,238
Unemployment compensation 2,000 2,000 7 1,993
Utilities 85,000 85,000 68,115 16,885
Telephone 1,000 1,000 165 835
Building and grounds maintenance 46,500 46,500 36,439 10,061
Professional development 2,000 0 0 0
Pool 25,000 26,866 19,292 7,574
Concession supplies 3,000 5,000 4,840 160
Insurance-building and contents 7,300 5,632 5,631 1
Insurance-general liability 3,400 2,144 2;144 0
Insurance-worker's compensation 11,300 65 65 0
Program development 2,000 2,000 1,906 94
Total Tinsley Park $ 384,100 $ 371,807 $ 270,345 $ 101,462
Total culture and recreation $ 2,564,905 $ 2,644,034 $ 2,322,040 $ 321,994
Appropriations:
Jointly funded agencies $ 15,000 $ 10,468 $ 10,000 $ 468
Regional Museum 42,300 42,300 42,300 0
Municipal League dues 10,200 10,404 10,404 0
Economic Development 45,000 45,000 45,000 0
Southeast Tennessee Development 9,000 9,945 9,945 0
Mainstreet Cleveland 25,000 25,000 25,000 0
Cemetery Association 10,000 10,000 10,000 0
Court's Community Services 60,000 60,000 59,318 682
Keep America Beautiful 28,200 28,200 28,200 0
Juvenile Court match 1,100 1,100 1,100 0
United Way supporters 1,000 1,000 0 1,000
SETHRA transit 135,000 135,000 135,000 0
Communications Center 650,000 650,000 650,000 0
Emergency Management 108,000 108,383 108,382 1
The accompanying notes are an integral part of these financial statements. -45-
CITY OF CLEVELAND,TENNESSEE
GENERAL FLJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Appropriations-(Continued):
Mainstreet projects $ 4,000 $ 4,000 $ 4,000 $ 0
SETDD legal fees 1,000 1,000 0 1,000
Veterans Affairs Office 31,500 31,500 28,858 2,642
Behavioral Research 2,000 2,000 0 2,000
HVAC at Museum Center 0 20,000 20,000 0
Life Bridges 6,200 6,200 6,200 0
Community Services Agency 97,000 97,000 97,000 0
Cleveland Youth Football 8,000 8,000 8,000 0
Aqua Tigers equipment 2,000 2,000 2,000 0
Boys and Girls Club 13,000 16,000 14,000 2,000
Waterdogs 2,000 2,000 2,000 0
Greater Cleveland Soccer Associarion 5,000 5,000 5,000 0
Soccer Association-land 5,000 5,000 5,000 0
Community Services Agency 15,000 15,000 15,000 0
Independence Day celebration 5,000 5,000 5,000 0
Vocational School 30,700 30,700 30,700 0
Total appropriations $ 1,367,200 $ 1,387,200 $ 1,377,407 $ 9,793
Debt service:
Interest and fiscal charges $ 0 $ 0 $ 18,338 $ (18,338)
Total Debt Service $ 0 $ 0 $ 18,338 $ (18,338)
Total expenditures $ 39,996,304 $ 42,172,306 $ 39,665,949 $ 2,506,357
Excess of revenues
over expenditures $ 12,006,196 $ 14,066,231 $ 18,954,369 $ 4,888,138
Other financing sources(uses):
Transfers in $ 3,034,767 $ 2,904,233 $ 2,904,133 $ (100)
Transfers out (14,519,700) (15,987,497) (15,987,497) 0
Notes issued 0 455,575 455,575 0
Total other financing sources(uses) $ (11,484,933) $ (12,627,689) $ (12,627,789) $ (100)
Net change in fund balances $ 521,263 $ 1,438,542 $ 6,326,580 $ 4,888,038
Fund balance at beginning of year 27,489,269 27,489,269 27,489,269 0
Fund balance at end ofyear $ 28,010,532 $ 28,927,811 $ 33,815,849 $ 4,888,038
The accompanying notes are an integral part of these financial statements. -46-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FUND
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovemmental:
Federal government:
Education of the handicapped $ 30,000 $ 77,729 $ 77,729 $ 0
Other federal through state 0 0 215,652 215,652
Total federal government $ 30,000 $ 77,729 $ 293,381 $ 215,652
State of Tennessee:
Basic education program $ 31,332,000 $ 31,137,000 $ 31,096,001 $ (40,999)
School food service 27,453 27,453 31,397 3,944
Other state education funds 125,000 1,073,606 720,244 (353,362)
Career ladder program 61,991 50,129 50,552 423
Other state grants 910,957 924,887 934,871 9,984
State mixed drink tax 118,990 145,000 160,725 15,725
State income tax 0 58,474 27,562 (30,912)
On-behalf contributions for opeb 0 0 148,463 148,463
Total State of Tennessee $ 32,576,391 $ 33,416,549 $ 33,169,815 $ (246,734)
Bradley County:
Property taxes-current $ 6,350,000 $ 6,647,043 $ 6,654,519 $ 7,476
Property taxes-prior 182,061 182,061 109,755 (72,306)
Clerk and master 116,000 116,000 91,501 (24,499)
Interest and penalty 31,369 31,369 21,630 (9,739)
In lieu of taxes-local utilities 3,805 3,805 2,545 (1,260)
In lieu of taxes-other utilities 487,000 487,000 382,688 (104,312)
Marriage license 2,825 2,825 2,857 32
Bank excise tax 28,376 28,376 41,855 13,479
Interstate telecommunications tax 0 0 200 200
Local sales tax 6,523,352 6,896,758 7,251,590 354,832
Total Bradley County $ 13,724,788 $ 14,395,237 $ 14,559,140 $ 163,903
TotalIntergovernmental $ 46,331,179 $ 47,889,515 $ 48,022,336 $ 132,821
Charges for services:
Tuition $ 101,935 $ 101,935 $ 101,286 $ (649)
Criminal background fee 4,800 4,800 1,200 (3,600)
Total charges for services $ 106,735 $ 106,735 $ 102,486 $ (4,249)
The accompanying notes are an integral part of these financial statements. -47-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues-(Continued)
Interest $ 13,250 $ 13,250 $ 6,777 $ (6,473)
Miscellaneous:
Miscellaneous refunds $ 98,841 $ 98,841 $ 56,429 $ (42,412)
Sale of equipment 6,900 6,900 19,455 12,555
Damages recovered 1,800 1,800 350 (1,450)
Conhibutions 112,896 136,107 157,384 21,277
Other 7,461 7,461 3,550 (3,911)
Total miscellaneous $ 227,898 $ 251,109 $ 237,168 $ (13,941)
Totalrevenues $ 46,679,062 $ 48,260,609 $ 48,368,767 $ 108,158
Expenditures:
Current:
Education:
Regular instruction:
Teachers $ 18,501,478 $ 19,429,188 $ 18,622,292 $ 806,896
Career ladder program 25,500 21,500 22,500 (1,000)
Homeboundteachers 71,512 74,180 73,623 557
Assistants 1,265,298 1,228,635 1,245,926 (17,291)
Other salaries and wages 160,520 160,520 151,304 9,216
Certified substitute teachers 119,875 36,035 36,035 0
Non-certified substitute teachers 118,405 62,405 54,526 7,879
Social security 1,242,024 1,253,807 1,162,691 91,116
Stateretirement 2,149,922 1,928,447 1,873,705 54,742
Life insurance 24,818 25,768 30,829 (5,061)
Medical insurance 2,787,893 2,845,938 2,850,647 (4,709)
Unemployment compensation 8,000 8,000 496 7,504
Employer medicare 290,473 293,229 272,786 20,443
Retirement-hybrid stabilization 116,242 142,014 0 142,014
Other fringe benefits 89,285 89,285 72,979 16,306
Operating lease payments 448,589 448,589 0 448,589
Maintenance and repair 13,700 13,700 0 13,700
Other contracted services 227,970 367,810 207,986 159,824
Instructional supplies 176,775 176,775 292,637 (115,862)
Electronictextbooks 73,964 73,964 50,230 23,734
Textbooks 157,650 157,650 191,302 (33,652)
Other supplies and materials 17,975 16,380 14,076 2,304
Other charges 4,550 6,145 7,398 (1,253)
Regular instruction equipment 48,870 48,870 68,399 (19,529)
Total regular instruction $ 28,141,288 $ 28,908,834 $ 27,302,367 $ 1,606,467
Special education:
Teachers $ 2,153,069 $ 2,177,037 $ 2,175,299 $ 1,738
Career ladder program 7,000 6,000 5,500 500
Homebound teachers 1,000 10,750 10,350 400
Assistants 445,854 427,594 427,707 (113)
Speech pathologist 294,948 319,939 319,939 0
The accompanying notes are an integral part of these financial statements. -48-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Special education-(Continued):
Other salaries and wages $ 45,447 $ 0 $ 0 $ 0
Certified substitute teachers 9,000 9,000 880 8,120
Non-certified subsritute teachers 8,000 8,000 1,985 6,015
Social security 182,355 184,119 168,871 15,248
State retirement 337,375 340,591 305,425 35,166
Life insurance 4,523 4,559 5,453 (894)
Medical insurance 437,490 425,287 422,876 2,411
Employer medicare 42,647 43,060 39,566 3,494
Contracts with private agencies 22,102 22,102 11,006 11,096
Maintenance and other repair services 1,200 1,200 1,475 (275)
Other contracted services 0 11,170 11,170 0
Instructional supplies 26,750 26,750 20,228 6,522
Other supplies and materials 7,950 7,950 4,884 3,066
Special education equipment 4,400 4,400 8,234 (3,834)
Total special education $ 4,031,110 $ 4,029,508 $ 3,940,848 $ 88,660
Vocational education:
Teachers $ 1,043,368 $ 1,065,303 $ 1,062,621 $ 2,682
Certified substitute teachers 4,000 4,000 240 3,760
Non-certified substitute teachers 2,500 2,500 1,340 1,160
Social security 64,691 65,321 60,155 5,166
State retirement 107,467 108,512 ' 103,993 4,519
Life insurance 1,187 1,215 1,465 (250)
Medical insurance 156,880 167,511 167,525 (14)
Employer medicaze 15,129 15,277 14,069 1,208
Maintenance and repair services 8,500 8,500 881 7,619
Tuition 375 375 0 375
Other contracted services 4,500 4,500 15,221 (10,721)
Instructional supplies 32,700 32,700 42,456 (9,756)
Other supplies and materials 2,300 2,300 55,242 (52,942)
Vocational instruction equipment 66,667 121,643 57,517 64,126
Total vocational education $ 1,510,264 $ 1,599,657 $ 1,582,725 $ 16,932
Students:
Attendance:
Supervisor $ 51,500 $ 51,993 $ 51,993 $ 0 ,
Other salaries and wages 36,564 36,920 36,920 0
Social security 5,460 5,176 5,185 (9)
State retirement 11,586 11,698 11,707 (9)
Life insurance 119 122 122 0
Medical insurance 7,903 15,017 15,017 0
Employer medicare 1,277 1,210 1,213 (3)
Other supplies and materials 7,500 7,500 5,018 2,482
Total attendance $ 121,909 $ 129,636 $ 127,175 $ 2,461
The accompanying notes are an integral part of these financial statements. -49-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Students-(Continued):
Health services:
Supervisor/Director $ 72,189 $ 72,189 $ 72,189 $ 0
Medical personnel 278,759 281,490 293,798 (12,308)
Other salaries and wages 1,500 1,500 1,500 0
Certified substitute teachers 2,500 1,120 465 655
Social security 21,852 21,389 20,490 899
State retirement 55,584 56,053 47,468 8,585
Life insurance 794 797 814 (17)
Medical insurance 63,836 63,519 61,878 1,641
Employermedicare 5,111 4,992 4,792 200
Postal charges 0 22 22 0
Travel 6,000 7,638 7,592 46
Other contracted services 0 500 500 0
Drugs and medical supplies 2,000 2,000 3,449 (1,449)
Other supplies and materials 12,973 19,323 18,649 674
In service staff development 6,000 Z75 275 0
Other equipment 500 200 0 200
Total health services $ 529,598 $ 533,007 $ 533,881 $ (874)
Other siudent support:
Career ladder program $ 3,000 $ 3,000 $ 3,000 $ 0
Guidance personnel 965,485 968,547 969,747 (1,200)
Psychological personnel 128,612 129,867 129,867 0
Attendants 162,000 162,000 121,180 40,820
Other salaries and wages 64,629 65,Z59 65,259 0
Social security 81,774 82,475 75,063 7,412
State retirement 124,104 125,312 124,005 1,307
Life insurance 1,206 1,168 1,491 (323)
Medical insurance 143,079 134,563 134,620 (57)
Employer medicare 19,194 19,357 17,555 1,802
Evaluation and testi.ng 90,870 90,870 40,948 49,922
Maintenance and repair services 100 100 0 100
Postal charges 1,000 1,000 0 1,000
Other contracted services 428,167 486,667 479,933 6,734
Other supplies and materials 6,100 7,418 5,221 2,197
Total other student support $ 2,219,320 $ 2,277,603 $ 2,167,889 $ 109,714
Total students $ 2,870,827 $ 2,940,246 $ 2,828,945 $ 111,301
The accompanying notes are an integral part of these fmancial statements. -50-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FLJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Instructional staff:
Regular instruction program:
Supervisor $ 349,301 $ 452,670 $ 352,670 $ 100,000
Cazeer ladder program 6,000 6,000 6,000 0
Librarians 643,659 649,926 649,676 250
Materials supervisor 52,036 52,544 52,534 10
Secretaries 151,673 154,199 154,199 0
Other salaries and wages 85,138 85,969 85,969 0
Social security 79,001 79,747 75,685 4,062
State retirement 154,583 155,954 148,961 6,993
Life insurance 1,442 1,476 1,625 (149)
Medical insurance 143,612 140,790 140,596 194
Employer medicare 18,476 18,650 17,701 949
Dues and subscriptions 4,000 4,000 610 3,390
Travel 32,000 32,000 6,947 25,053
Other contracted services 8,500 8,500 3,760 4,740
Librarybooks 41,000 41,000 37,149 3,851
Other supplies and materials 19,975 19,975 13,800 6,175
In-service staffdevelopment 76,000 80,615 62,532 18,083
Other equipment 3,500 3,500 10,002 (6,502)
Total regular instruction program $ 1,869,896 $ 1,987,515 $ 1,820,416 $ 167,099
Special education:
Supervisor $ 101,991 $ 103,871 $ 103,871 $ 0
Bonus payments 0 302 302 0
Social security 6,323 6,131 6,131 0
State retirement 10,505 10,725 10,725 0
Life insurance 79 81 81 0
Medical insurance 15,806 16,104 16,104 0
Employer medicare 1,468 1,433 1,434 (1)
Consultants 500 500 0 500
Travel 1,500 1,500 1,437 63
Total special education $ 138,172 $ 140,647 $ 140,085 $ 562
Vocational education:
Supervisor $ 94,236 $ 95,156 $ 95,156 $ 0
Secretaries 24,640 24,880 23,696 1,184
Social security 7,370 7,576 7,250 326
State retirement 13,939 14,075 13,867 208
Life insurance 146 149 143 6
Medical insurance 13,606 13,943 13,357 586
The accompanying notes are an integral part of these fmancial statements. -51 -
CITY OF CLEVELAND,TENNESSEE
SCHOOL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Instructional staff-(Continued):
Vocational education-(Continued):
Employer medicare $ 1,724 $ 1,709 $ 1,696 $ 13
Travel 2,500 2,500 298 2,202
Total vocational education $ 158,161 $ 159,988 $ 155,463 $ 4,525
Total instructional staff $ 2,166,229 $ 2,288,150 $ 2,115,964 $ 172,186
General administration:
Technology:
Supervisor $ 97,349 $ 98,279 $ 98,279 $ 0
Othersalariesandwages 200,140 202,035 215,152 (13,117)
Social security 18,444 18,619 18,065 554
Retirement 44,411 44,737 44,489 248
Life insttrance 477 477 481 (4)
Health insurance 51,160 51,160 52,796 (1,636)
Employer medicare 4,314 4,355 4,225 130
Intemet connectivity 25,406 25,406 36,878 (11,472)
Travel 4,000 4,000 2,303 1,697
Other contracted services 123,149 123,149 116,889 6,260
Cabling 3,563 3,563 1,614 1,949
Software 127,282 127,282 92,780 34,502
Other supplies and materials 2,000 2,000 5,635 (3,635)
Othercharges 5,000 5,000 3,138 1,862
Other equipment 11,761 11,761 23,953 (12,192)
Total technology $ 718,456 $ 721,823 $ 716,677 $ 5,146
Board of education:
Board and committee members'fees $ 52,800 $ 52,800 $ 52,800 $ 0
Social security 3,274 3,274 3,274 0
Employer medicaze 766 766 766 0
Other fringe benefits 757 757 750 7
Audit services 14,150 14,500 14,500 0
Dues and membership 7,106 7,15 8 7,15 8 0
Legal services 20,000 20,000 24,076 (4,076)
Liability insurance 62,407 67,647 67,647 0
Premiums on corporate surety bonds 40,327 43,231 43,231 0
Trustee's commission 118,520 152,150 144,555 7,595
Worker's compensation insurance 169,211 155,502 155,502 0
Criminal investigarion 8,000 9,590 11,143 (1,553)
Refund for criminal investigation 2,000 2,000 1,696 304
Other charges 32,000 49,000 51,744 (2,744)
Total board of education . $ 531,318 $ 578,375 $ 578,842 $ (467)
The accompanying notes are an integral part of these financial statements. -52-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FUND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
General administration-(Continued):
Office of the superintendent:
Administrative officer $ 161,287 $ 166,000 $ 172,142 $ (6,142)
Assistants 113,457 116,101 116,101 0
Career ladder program 1,000 2,000 2,000 0
Secretaries 74,180 74,903 74,351 552
Bonus payments 0 1,174 1,174 0
Other salaries and wages 9,600 9,600 9,600 0
Social securiTy 22,104 19,603 19,959 (356)
State retirement 42,134 43,265 42,717 548
Life insurance 314 284 288 (4)
Medical insurance 38,996 40,755 40,597 158
Employermedicare 5,169 5,139 5,223 (84)
Communication 127,000 178,268 147,616 30,652
Dues and memberships 7,964 10,705 10,705 0
Postal charges 6,500 6,500� 2,402 4,098
Travel 13,000 13,000 10,195 2,805
Other contracted services 33,191 30,691 54,360 (23,669)
Office supplies 16,500 16,500 15,168 1,332
Other charges 16,900 19,400 20,144 (744)
Administrative equipment 5,000 5,000 4,939 61
Total office of superintendent $ 694,296 $ 758,888 $ 749,681 $ 9,207
Total general administration $ 1,944,070 $ 2,059,086 $ 2,045,200 $ 13,886
Office of the Principal:
Principals $ 923,440 $ 928,814 $ 852,571 $ 76,243
Career ladder program 6,000 5,000 5,000 0
Assistantprincipals 1,073,836 1,084,953 1,146,465 (61,512)
Secretaries 423,848 447,674 448,614 (940)
Social security 149,240 139,891 141,272 (1,381)
State retirement 279,154 281,937 280,543 1,394
Life insurance 2,674 2,753 3,082 (329)
Medical insurance 289,588 324,006 322,447 1,559
Employer medicare 34,903 35,254 33,039 2,215
Dues and memberships 700 700 1,394 (694)
Maintenance and repair services 5,525 5,525 4,317 1,208
Postal charges 5,050 5,050 4,079 971
Travel 5,100 5,100 61 5,039
Other contracted services 19,975 19,975 15,608 4,367
Office supplies 11,225 11,225 11,862 (637)
Admitustrative equipment 16,990 16,990 6,622 10,368
Total office of the principal $ 3,247,248 $ 3,314,847 $ 3,276,976 $ 37,871
The accompanying notes aze an integral part of these financial statements. -53 -
CITY OF CLEVELAND,TENNESSEE
SCHOOL FiJND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FLJND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Business administration:
Bookkeepers $ 250,226 $ 255,726 $ 255,726 $ 0
Bonus payments 0 1,140 1,140 0
Social security 13,823 14,164 14,164 0
State retirement 42,989 44,009 44,009 0
Life insurance 300 325 325 0
Medical insurance 42,160 43,210 43,210 0
Employer medicare 3,628 3,313 3,313 0
Data processing services 47,219 51,355 51,355 0
Travel 1,000 1,000 3 85 615
Total business administration $ 401,345 $ 414,242 $ 413,627 $ 615
Operation of plant:
Operation of plant:
Bonus payments $ 0 $ 151 $ 151 $ 0
Other salaries and wages 42,200 42,612 42,612 0
Social security 2,616 2,651 2,584 67
State retirement 4,347 4,405 4,399 6
Life insurance 40 40 41 (1)
Medical insurance 7,903 7,176 7,176 0
Employer medicare 612 623 604 19
Janitorial services 1,461,492 1,571,377 1,571,377 0
Other contracted services 136,547 136,547 145,518 (8,971)
Electricity 1,116,428 1,116,428 1,110,332 6,096
Natural gas 115,395 115,395 96,544 18,851
Water and sewer 198,695 229,785 234,898 (5,113)
Other supplies and materials 25,000 0 0 0
Boiler insurance 6,432 7,384 7,384 0
Building and contents insurance 241,963 259,385 259,385 0
Total operation of plant $ 3,359,670 $ 3,493,959 $ 3,483,005 $ 10,954
Maintenance of plant:
Supervisor $ 92,002 $ 92,880 $ 89,100 $ 3,780
Maintenance personnel 527,214 531,656 536,321 (4,665)
Bonus payments 0 3,705 . 3,705 0
Other salaries and wages 35,000 35,000 1,596 33,404
Social security 40,259 40,819 35,471 5,348
State retirement 106,381 107,883 104,938 2,945
Life insurance 1,022 1,038 1,038 0
Medical insurance 109,163 109,457 109,471 (14)
Employer medicare liability 9,486 9,618 8,296 1,322
Maintenance and repair services-building 90,140 90,140 51,790 38,350
Maintenance and repair services-equipment 2,000 2,000 66,594 (64,594)
Other contracted services 101,000 101,000 204,292 (103,292)
Equipment and machinery parts 5,200 5,200 16,994 (11,794)
The accompanying notes are an integral part of these financial statements. -54-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FUND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Maintenance of plant-(Continued):
Other supplies and materials $ 190,000 $ 190,000 $ 65,448 $ 124,552
Other charges 5,000 5,000 4,495 505
Administration equipment 0 94,000 92,618 1,382
Maintenance equipment 2,500 12,500 1,883 10,617
Total maintenance ofplant $ 1,316,367 $ 1,431,896 $ 1,394,050 $ 37,846
Total operation and maintenance $ 4,676,037 $ 4,925,855 $ 4,877,055 $ 48,800
Transportation:
Supervisor $ 43,676 $ 0 $ 0 $ 0
Mechanics 94,409 95,288 106,331 (11,043)
Bus drivers 606,183 679,175 565,933 113,242
Other salaries and wages 0 44,102 63,693 (19,591)
Social security 46,145 46,592 45,527 1,065
State retirement 23,723 18,489 31,732 (13,243)
Life insurance 238 253 254 (1)
Medical insurance 26,240 26,125 26,153 (28)
Employer medicare 10,792 10,167 10,647 (480)
Contracts with parents 1,000 1,000 0 1,000
Medical and dental services 3,500 3,500 4,605 (1,105)
Travel 1,100 1,100 0 1,100
Other contracted services 22,500 57,500 78,607 (21,107)
Diesel fuel 189,088 189,088 160,450 28,638
Gasoline 20,000 20,000 21,622 (1,622)
Lubricants 2,000 2,000 5,161 (3,161)
Tires and tubes 17,290 17,290 21,159 (3,869)
Vehicle parts 79,440 79,440 66,814 12,626
Other supplies and materials 2,000 2,000 31,471 (29,471)
Vehicle and equipment insurance 60,491 65,340 65,340 0
Other charges 15,550 15,550 63,814 (48,264)
Total transportation $ 1,265,365 $ 1,373,999 $ 1,369,313 $ 4,686
Food service:
Bonus payments $ 0 $ 11,749 $ 8,616 $ 3,133
Other salaries and wages 63,844 66,442 66,442 0
Social security 3,958 4,045 4,579 (534)
State retirement 10,968 5,707 7,617 (1,910)
Life insurance 80 81 81 0
Medical insurance 9,633 5,978 5,978 0
Employer medicare 926 946 1,070 (124)
Food supplies 0 0 2,079 (2,079)
Total food service $ 89,409 $ 94,948 $ 96,462 $ (1,514)
The accompanying notes are an integral part of these financial statements. -55 -
CITY OF CLEVELAND,TENNESSEE
SCHOOL FLTND (Continued)
STATEMENT OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Education-(Continued):
Community services:
Other contracted services $ 40,000 $ 40,000 $ 40,000 $ 0
Tota1 community services $ 40,000 $ 40,000 $ 40,000 $ 0
Early Childhood Education:
Contracts with other public agencies $ 910,957 $ 924,887 $ 924,887 $ 0
Total early childhood education $ 910,957 $ 924,887 $ 924,887 $ 0
Other Programs
On-behalfpayments ofopeb $ 0 $ 0 $ 148,463 $ (148,463)
Totalotherprograms $ 0 $ 0 $ 148,463 $ (148,463)
Total education $ 51,294,149 $ 52,914,259 $ 50,962,832 $ 1,951,427
Capital Outlay
Building improvements $ 105,416 $ 105,416 $ 232,472 $ (127,056)
Lease right-to-use asset 0 0 32,234 (32,234)
Tota1 capital outlay $ 105,416 $ 105,416 $ 264,706 $ (159,290)
Debt Service
Principal on bonds $ 415,000 $ 443,476 $ 28,476 $ 415,000
Principal on leases 0 0 510,084 (510,084)
Interest on bonds 207,213 212,673 5,460 207,213
Interest on notes 194,700 194,700 0 194,700
Interest on leases 0 0 46,380 (46,380)
Total debt service $ 816,913 $ 850,849 $ 590,400 $ 260,449
Totalexpenditures $ 52,111,062 $ 53,870,524 $ 51,817,938 $ 2,052,586
Excess(deficiency)of
revenuesoverexpenditures $ (5,432,000) $ (5,609,915) $ (3,449,171) $ 2,160,744
Other Financing Sources(Uses)
Transfers in $ 5,432,000 $ 5,609,915 $ 5,609,037 $ (878)
Transfers out 0 0 (816,913) (816,913)
Lease financing 0 0 32,234 32,234
Total other financing sources(uses) $ 5,432,000 $ 5,609,915 $ 4,824,358 $ (785,557)
Net change in fund balances $ 0 $ 0 $ 1,375,187 $ 1,375,187
Fund balance at beginnuig of year 8,519,040 8,519,040 8,519,040 $ 0
Fund balance at end of year $ 8,519,040 $ 8,519,040 $ 9,894,227 $ 1,375,187
The accompanying notes are an integral part of these financial statements. -56-
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
June 30,2022
Enterprise Funds
Cleveland Cleveland
Utilities Utilities Stormwater Internal
Water Electric Management Service
Division Division Fund Total Funds
ASSETS
Current assets:
Cash and cash equivalents $ 14,356,499 $ 24,283,849 $ 2,761,846 $ 41,402,194 $ 2,833,998
Accounts receivable-net 3,250,029 17,234,013 137,659 20,621,701 22,589
Inventories 1,213,965 2,895,764 0 4,109,729 0
Prepaids 154,771 156,982 0 311,753 0
Total current assets $ 18,975,264 $ 44,570,608 $ 2,899,505 $ 66,445,377 $ 2,856,587
Noncurrent assets:
Receivable-conservation loans $ 0 $ 1,326,585 $ 0 $ 1,326,585 $ 0
Other assets 0 1,447,798 0 1,447,798 0
Net pension asset-restricted 321,938 205,829 4,829 532,596 0
Capital assets:
Land and construction in progress 19,337,297 3,197,933 1,049,932 23,585,162 0
Other capital assets,net of depreciation 130,426,769 82,825,877 2,335,411 215,588,057 0
Total noncurrent assets $ 150,086,004 $ 89,004,022 $ 3,390,172 $ 242,480,198 $ 0
Total assets $ 169,061,268 $ 133,574,630 $ 6,289,677 $ 308,925,575 $ 2,856,587
DEFERRED OUTFLOWS OF RESOURCES
Deferred charge on refunding $ 348,362 $ 22,011 $ 0 $ 370,373 $ 0
Deferred outflows-pensions 2,588,045 3,375,527 63,485 6,027,057 0
Deferred outflows-opeb 500,132 372,344 65,781 938,257 0
Total deferred outflows of resources $ 3,436,539 $ 3,769,882 $ 129,266 $ 7,335,687 $ 0
LIABILIT'IES
Current liabilities:
Accounts payable $ 114,093 $ 12,000,106 $ 1,558 $ 12,115,757 $ 339,963
Customer deposits 0 4,062,704 0 4,062,704 0 _
Due to other funds 0 115,000 0 115,000 0
Current maturities of long-term debt 5,003,537 1,297,740 0 6,301,277 0
Other current liabilities 2,297,976 1,329,649 9,718 3,637,343 0
Total current liabilities $ 7,415,606 $ 18,805,199 $ 11,276 $ 26,232,081 $ 339,963
Noncurrent liabilities:
Post-employment benefits payable $ 6,937,585 $ 5,008,302 $ 353,534 $ 12,299,421 $ 0
Pension benefits payable 507,645 985,442 0 1,493,087 0
Conservation advances from TVA 0 1,375,170 0 1,375,170 0
Due to other funds 0 713,333 0 713,333 0
Leases payable 0 13,037 0 13,037 0
Notes payable 25,503,335 1,626,154 0 27,129,489 0
Revenue bonds payable net of discount 29,137,836 12,397,363 0 41,535,199 0
Total noncurrent liabilities $ 62,086,401 $ 22,118,801 $ 353,534 $ 84,558,736 $ 0
Totalliabilities $ 69,502,007 $ 40,924,000 $ 364,810 $ 110,790,817 $ 339,963
DEFERRED INFLOWS OF RESOURCES
Deferred charge on refunding $ 94,436 $ 158,797 $ 0 $ 253,233 $ 0
Deferred inflows-pensions 5,670,161 4,735,547 70,326 10,476,034 0
Deferred inflows-opeb 1,812,043 1,283,828 222,434 3,318,305 0
Tota1 deferred inflows of resources $ 7,576,640 $ 6,178,172 $ 292,760 $ 14,047,572 $ 0
NET POSITION
Net investment in capital assets $ 90,378,543 $ 70,557,638 $ 3,385,343 $ 164,321,524 $ 0
Unrestricted 5,040,617 19,684,702 2,376,030 27,101,349 2,516,624
Total net position $ 95,419,160 $ 90,242,340 $ 5,761,373 $ 191,422,873 $ 2,516,624
The accompanying notes are an integral part of these financial statements. -57-
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF REVENUES,EXPENSES AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30,2022
Enterprise Funds
Cleveland Cleveland
Utilities Utilities Stormwater Intemal
Water Electric Management Service
Division Division Fund Total Funds
Operating Revenues:
Charges for services $ 31,811,082 $ 105,956,378 $ 1,575,112 $ 139,342,572 $ 5,575,118
Other operating revenues 3,235,513 1,752,360 0 4,987,873 0
Total operating revenues $ 35,046,595 $ 107,708,738 $ 1,575,112 $ 144,330,445 $ 5,575,118
Operating Expenses:
Power purchased $ 0 $ 78,293,429 $ 0 $ 78,293,429 $ 0
Operation expenses 18,113,206 8,055,096 946,828 27,115,130 3,978,705
Maintenance expense 3,515,145 4,830,682 0 8,345,827 0
Depreciation and amortization 7,156,227 4,957,556 61,082 12,174,865 0
Total operating expenses $ 28,784,578 $ 96,136,763 $ 1,007,910 $ 125,929,251 $ 3,978,705
Operating income(loss) $ 6,262,017 $ 11,571,975 $ 567,202 $ 18,401,194 $ 1,596,413
Non Operating Revenues(Expenses):
Interest income $ 40,242 $ 80,787 $ 8,347 $ 129,376 $ 6,352
Interest expense (1,240,874) (404,028) 0 (1,644,902) 0
Plant cost recovered through
contributions 0 (161,974) 0 (161,974) 0
Gain on disposal of assets 0 0 232,144 232,144 0
Other income(expense) (10,246) 308,074 0 297,828 0
Total nonoperating revenues
(expenses) $ (1,210,878) $ (177,141) $ 240,491 $ (1,147,528) $ 6,352
Income before contributions
andtransfers $ 5,051,139 $ 11,394,834 $ 807,693 $ 17,253,666 $ 1,602,765
Capital contributions 961,596 161,974 0 1,123,570 0
Transfers out (486,260) (2,417,873) 0 (2,904,133) 0
Changeinnetposition $ 5,526,475 $ 9,138,935 $ 807,693 $ 15,473,103 $ 1,602,765
Total net position-beginning 89,892,685 81,103,405 4,953,680 175,949,770 913,859
Total net position-ending $ 95,419,160 $ 90,242,340 $ 5,761,373 $ 191,422,873 $ 2,516,624
The accompanying notes are an integral part of these financial statements. -58-
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30,2022
Enterprise Funds
Cleveland Cleveland
Utilities Urilities Stormwater Internal
Water Electric Management Service
Division Division Fund Total Funds
Cash flows from operating activities:
Receiptsfromcustomers $ 35,635,130 $ 106,105,185 $ 1,570,991 $ 143,311,306 $ 0
Receipts from interfund charges 0 0 0 0 5,561,356
Payments to suppliers (15,853,305) (82,060,484) (791,223) (98,705,012) (3,970,704)
Payments to employees for services (6,204,486) (10,329,463) (201,758) (16,735,707) 0
Net cash provided by
(used in)operating activities $ 13,577,339 $ 13,715,238 $ 578,010 $ 27,870,587 $ 1,590,652
Cash flows from noncapital financing activities:
Transfers out $ (486,260) $ (2,417,873) $ 0 $ (2,904,133) $ 0
Net cash provided by
(used in)financing activities $ (486,260) $ (2,417,873) $ 0 $ (2,904,133) $ 0
Cash flows from capital and related financing activities:
Additions to plants $ (14,567,505) $ (8,941,397) $ (266,836) $ (23,775,738) $ 0
Proceeds received for conlributions
in aid of conslruction 961,596 161,974 0 1,123,570 0
Removal cost 0 (416,286) 0 (416,286) 0
Salvage 5,567 165,581 0 171,148 0
Proceeds from sale of assets 0 0 232,144 232,144 0
Proceeds from issuance ofdebt 6,712,163 0 0 6,712,163 0
Payment of principal on long-term debt (4,244,455) (1,295,403) 0 (5,539,858) 0
Payment of interest on long-term debt (1,525,684) (574,640) 0 (2,100,324) 0
Net cash provided by(used in)capital
and related financing activities $ (12,658,318) $ (10,900,171) $ (34,692) $ (23,593,181) $ 0
Cash flows from investing activities:
Interest received $ 40,242 $ 80,787 $ 8,347 $ 129,376 $ 6,352
Net cash provided by investing activities $ 40,242 $ 80,787 $ 8,347 $ 129,376 $ 6,352
Net increase(decrease)in cash and
cash equivalents $ 473,003 $ 477,981 $ 551,665 $ 1,502,649 $ 1,597,004
Cash and cash equivalents,beginning ofyear 13,883,496 23,805,868 2,210,181 39,899,545 1,236,994
Cash and cash equivalents,end of year $ 14,356,499 $ 24,283,849 $ 2,761,846 $ 41,402,194 $ 2,833,998
The accompanying notes are an integral part of these fmancial statements. -59-
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF CASH FLOWS (Continued)
PROPRIETARY FUNDS
For the Fiscal Year Ended June 30,2022
Enterprise Funds
Cleveland Cleveland
Utilities Utilities Stormwater Intemal
Water Electric Management Service
Division Division Fund Total Funds
Reconciliation of operating income to net cash provided by operating activities:
Operating income(loss) $ 6,262,017 $ 11,571,975 $ 567,202 $ 18,401,194 $ 1,596,413
revenues to net cash provided by
operati.ng activities:
Depreciation 7,410,491 5,215,427 61,082 12,687,000 0
Other revenue(expense) (10,247) 308,601 0 298,354
Changes in operating assets and
liabilities �
Accounts receivable 588,535 (2,193,155) (4,121) (1,608,741) (13,761)
Allowance for doubtful accounts 0 13,132 0 13,132 0
Inventories (803,054) (803,302) 0 (1,606,356) 0
Receivable from customers for
conservation loans 0 88,527 0 88,527 0
Prepaids � (32,698) 17,648 0 (15,050) 0
Other assets 0 33,131 0 33,131 0
Accounts payable 40,902 1,220,643 (9,827) 1,251,718 8,000
Customer deposits 0 192,474 0 192,474 0
Other current liabilities 254,832 (1,097,478) (7,625) (850,271) 0
Pension benefits payable 302,662 (403,919) (34,944) (136,201) 0
Post-employment benefits payable (436,101) (346,975) 6,243 (776,833) 0
Conservation loans 0 (101,491) 0 (101,491) 0
Net cash provided by operating activities $ 13,577,339 $ 13,715,238 $ 578,010 $ 27,870,587 $ 1,590,652
The accompanying notes are an integral part of these financial statements. -60-
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF NET POSITION-FIDUCIARY FUND
OTHER POST-EMPLOYMENT BENEFITS TRUST FUND-CLEVELAND UTILITIES
June 30,2022
ASSETS
Current assets:
Cash and cash equivalents $ 168,260
Interest receivable 2,209
Investments,at fair value:
Equity mutual funds 3,150,915 ,
Total current assets $ 3,321,384
Total assets $ 3,321,384
NET POSITION
Net position restricted for other post-employment benefits $ 3,321,384
The accompanying notes are an integral part of these financial statements. -61 -
CITY OF CLEVELAND,TENNESSEE
STATEMENT OF CHANGES IN NET POSITION-FIDUCIARY FUND
OTHER POST-EMPLOYMENT BENEFITS TRUST FUND-CLEVELAND UTILITIES
For the Fiscal Year Ended June 30,2022
ADDITIONS
Employer contributions $ 1,440,742
Net investment income:
Interest and dividend income 186,266
Net change in the fair value of assets (709,93 8)
Total Additions $ 917,070
DEDUCTIONS
Benefits paid $ 728,585
Total Deductions $ 728,585
Change in Net Position Held in Trust for Other
Post-Employment Benefits $ 188,485
Net position,held in trust beginning of year 3,132,899
Net position,held in trust end of year $ 3,321,3 84
The accompanying notes are an integral part of these financial statements. -62-
NOTES
CITY OF CLEVELAND,TENNESSEE
NOTES TO FINANCIAL STATEMENTS
June 30,2022
Note 1 - SUMMARY OF SIGIVIFICANT ACCOiJNTING POLICIES
The City of Cleveland,Tennessee,("the City")was incorporated in 1903 under the provisions of
Chapter 307 of The Acts of 1903. The City operates under the Council-Manager form of government
as authorized under Chapter 78 of the Private Acts of 1993 and amended by Chapter 165 of the Private
Acts of 1994 as it relates to the operation of the school system. The City provides the following services
as authorized by its charter: health,public safety,welfare and general government services.
The following is a summary of significant policies:
A. Reporting Entity
The financial statements of the City of Cleveland include those of separately administered
organizations that have a significant operational or financial relationship with the City.
Based on the foregoing criteria,the financial statements of the following organizations are included
in the accompanying financial statements as part of the primary government:
Cleveland Board of Education
The Board of Education consists of seven members. Members are elected to four-year terms.
The Council levies taxes for the Boazd's operations and issues debt for its capital projects. The
financial position and results of operations of the Board of Education are reported in the School
Fund,School Federal Projects Fund,and School Food Services Fund as governmental fund types,
and included as part of the primary government due to the fact that it is not considered to be legally
separate.
Cleveland Board of Public Utiliries
The Board of Public Utilities consists of five members appointed by the City Council. The City
Council has authority over the Board,prescribes the rules and regulations to which the Board must
comply,and must approve their budget and proposed changes in rates. The financial position and
results of operarions of the Board of Public Utilities are presented in the Cleveland Utilities Water
Division and Cleveland Utilities Electric Division in the enterprise fund section. The activities of
the Board of Public Utilities are includable as part of the primary government due to the fact that
it is not considered to be legally sepazate.
Cleveland Public Library Board
The Board of Cleveland Public Library consists of seven members appointed by the City Council and
the County Commission. The Board is fiscally dependent upon the City because the City Council
approves the Library's budget and issues debt for its capital projects. The financial position and
results of operations of the Cleveland Public Library Board are reported in the Library Fund
as a governmental fund type and includable as part of the primary government due to the fact that
it is not considered to be legally separate.
B. Government-wide and Fund Financial Statements
Government-wide Statements-The statement of net position and the statement of activities display
informarion about the primary government. These statements include the financial activities of the
overall government. Eliminations have been made to minimize the double-counting of intemal
activities. These statements distinguish between the govemmental and business-type activities of
the City. Governmental activiries generally are financed through taxes,intergovernmental
revenues,and other nonexchange transactions. Business-type activities are financed in whole or
in part by fees charged to extemal parties.
-63 -
Note 1 - SLTMMARY OF SIGNIFICANT ACCOUNTING POLICIES-(Cont.)
B. Government-wide and Fund Financial Statements-(Cont.)
The statement of activities presents a comparison between direct expenses and program revenues
for the different business-type activities of the City and for each function of the City's governmental
activities. Direct expenses are those that are specifically associated with a program or fuuction and,
therefore,are clearly idenrifiable to a particular function. Program revenues include(a)fees,fines,
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 particular
program. Revenues that are not classified as program revenue,including all taxes,are presented
as general revenue.
Fund Financial Statements-The fund financial statements provide information about the City's funds,
including its governmental funds,proprietary funds and fiduciary funds. Separate statements for each
fund category are presented. The emphasis of fund financial statements is on major governmental and
enterprise funds,each displayed in a sepazate column. All remaining governmental and enterprise funds
are aggregated and reported as nonmaj or 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 parry receives and gives up essentially equal values. Nonoperating revenues, such as
subsidies and investment earnings,result from nonexchange transactions or ancillary activities.
T'he City reports the following major governmental funds:
General Fund. This is the City's primary operating fund. It accounts for all financial resources of
the general govemment,except those required to be accounted for in another fund.
School Fund. This fund is used to account for the revenues and expenditures of the City of
Cleveland public school system. Funding for the school system is provided by federal and state
grants as well as state and county taxes.
T'he City reports the following major enterprise funds:
Cleveland Utilities Water Division. This fund is used to account for the provision of water and
wastewater services to the residents of the City. All activities necessary to provide such services are
accounted for in this fund,including,but not limited to,administration,operations,maintenance,financing,
billing and collection and some service areas outside the corporate boundaries.
Cleveland Utiliries Electric Division. This fund is used to account for the provision of electr�ic
service to the residents of the City. All activiries necessary to provide such services are accounted
for in this fund,including,but not limited to,administration,operation,maintenance,financing,billing
and collection and some service areas outside the corporate boundaries.
Stormwater Management Fund-This fund is used to account for fees collected for stormwater maintenance
to residents of the City. All activities necessary to provide such services are accounted for in this
fund,including but not limited to,administration,operation,maintenance,financing,billing and
collection.
Additionally,the government reports the following fund types:
Fiduciary Funds. The City has one fiduciary fund. The Other Post-Employment Benefits Trust Fund holds
assets that have been set aside to fund the opeb liability of Cleveland Utilities. Fiduciary funds are used to
report assets held in a trustee or agency capacity for others and therefore are not available to support City
programs. The reporting focus is on net position and cha.nges in net position and employs accounting principles
similar to proprietary funds. The City's fiduciary fund is presented in the fund financial statements. Since by
definition these assets are being held for the benefit of a third party and cannot be used to finance activities or
obligations of the government,these funds are not incorporated into the government-wide statements.
Intemal Service Funds. The City has one internal service fund. The Health Insurance Trust Fund was
established to pay employee medical benefits under a partially self-insured plan.
-64-
Note 1 - SLJMMARY OF SIGNIF'ICANT ACCOLTNTING POLICIES-(Cont.)
B. Government-wide and Fund Financial Statements-(Cont.)
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this rule are payments-in-lieu of taxes where the amounts are reasonably
equivalent in value to the interfund services provided and other charges between the government's
water,wastewater and electric functions. Eliminations of these charges would distort the direct costs
and program revenues reported for the various functions concemed.
C. Measurement focus,Basis of Accounting
The government-wide financial statements are reported using the economic resources measurement
focus and the accrual basis of accounting,as are the proprietary fund financial statements. Revenues
are recorded when earned and expenses are recorded when a liability is incurred,regardless of
the timing of related cash flows. Property taxes are recognized as revenue in the year for which
they are levied. Grants and similar items are recognized as revenue as soon as all eligibility
requirements itnposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measure-
ment focus and the modified accrual basis of accounting. Revenues are recognized as soon as they
are both measurable and available. Revenues are considered to be available when they are
collectible within the current period or soon enough thereafter to pay liabilities of the current period.
The City considers all revenues reported in the governmental funds to be available if the revenues
aze collected within sixty days after year-end. Properiy taxes,sales taxes,franchise taxes,gasoline
taxes,wholesale beer taxes,income taxes,mixed drink taxes,gross receipts taxes and in-lieu of taxes
are susceptible to accrual. Licenses and permits,fines and forfeitures,gross receipts taxes and excise
taxes are recorded as revenue when received in cash because they are generally not measurable until
actually received. 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 recorded only when payment is due. General capital asset acquisitions are reported as expenditures
in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases aze
reported as other financing sources.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses genera.11y result from providing services and producing and delivering
goods in connection with the proprietary fund's principal ongoing operation. The principal operating
revenues of the City's enterprise funds and intemal service fund are charges to customers for sales
and services. Cleveland Utilities-Water Division also recognizes as operating revenue the portion
of the tap fees intended to recover the cost of connecting new customers to the system. Operating
expenses for enterprise funds and the internal service fund include the cost of sales and services,
administrative expenses,and depreciation on capital assets. All revenues and expenses not meeting
this definition are reported as nonoperating revenues and expenses. The effect of interfund activity
has been eliminated from the govemment-wide financial statements.
D. Cash and Cash Equivalents
Cash and cash equivalents consist of demand deposits and certificates of deposit with original
maturities of three months or less,primarily with local financial institutions.
E. Investments
State statutes authorize the government to make direct investments in bonds,notes,or treasury
bills of the U.S.government and obligations guaranteed by the U.S.government or any of its
agencies;deposit accounts at state and federal chartered banks and savings and loan associations;
repurchase agreements;.the State Treasurer's Investment Pool;bonds of any state or political
subdivision rated A or higher by any nationally recognized rati.ng service;nonconvertible debt
securities of certain federal government sponsored enterprises;and the City's own legally issued
bonds or notes.
-65-
Note 1 - SUMMARY OF SIGNIFICANT ACCOIJNTING POLICIES-(Cont.)
E. Investments-(Cont.)
The City's investments in certificates of deposit are reported at cost. Investments in the State
Local Government Investment Pool(LGIP)are reported at amortized cost using a Stable Net Asset
Value.State statutes require the state treasurer to administer the pool under the same terms and conditions,
including collateral requirements,as prescribed for other funds invested by the state treasurer.
The regulatory oversight for the LGIP is the State Funding Board. The City's net position in the pool
is the same as the pool shares.
F. Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding
at the end of the fiscal year are referred to as either"due to/from other funds"or"advances
to/from other funds." All other outstanding balances between funds are reported as"due to/
from other funds." Any residual balances outstanding between the governmental activities and
business-type activities are reported in the government-wide financial statements as"intemal
balances."
All trade and property tax receivables are shown net of an allowance for uncollectible amounts.
The City's property tax is levied each October 1,on the assessed value listed as of the prior
January 1,for all real and personal properiy located in the City. City property tax revenues are
recognized when levied to the extent they result in current receivables. Taaces not collected as
of March 1 of the following year are considered delinquent and are subject to lien on April 1 of
the succeeding year.
G. Inventories and Prepaid Items
Inventories are valued at cost,using the first-in,first-out method. The costs of such inventories
is recorded as expenditures/expenses when constuned rather than when purchased.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded
as prepaid items in both the government-wide and fiznd financial statements. The cost of prepaid
items are recorded as expenditures/expenses when consumed rather than when purchased.
H. Restricted Assets
Certain proceeds of the Cleveland Utilities-Water Division revenue bonds,as well as certain
resources set aside for their repayment,are classified as restricted assets on the balance sheet
because they are maintained in separate bank accounts and their use is limited by applicable
bond covenants. They are represented mostly by cash and certificates of deposit. When both
restricted and unrestricted resources are available for use,it is the government's policy to use
restricted resources first,then unrestricted resources as they are needed.
Restricted assets also consist of amounts held in a pension stabilization trust by the Tennessee
Consolidated Retirement System(TCRS)for the benefit of the Cleveland City School Department's
Teacher Retirement Plan. The purpose of this trust is to accumulate funds to provide stabilization
(smoothing)of retirement costs to the school system in times of fluctuating investinent returns and
market downturns. These funds are held and invested by TCRS pursuant to an irrevocable agreement
and may only be used for the benefit of the Cleveland City School System to fund retirement benefits
upon approval of the TCRS Board of Directors. To date,the Cleveland City School System has not
withdrawn any funds from the trust to pay pension cost. Trust documents provide that the funds are
not subject to the claims of general creditors of the school department.
I. Capital Assets
Capital assets,which include properly,plant,equipment,and infrastructure assets(e.g.,primary
roads,secondary roads,drainage),are reported in the applicable governmental or business-type
activities columns in the govemment-wide financial statements. Capital assets are defined by the
government as assets with an initial,individual cost of more than$500 and an estimated useful life
in excess of two years. Such assets are recorded at historical cost or estimated historical cost if
-66-
Note 1- SUMMARY OF SIGI�TIFICANT ACCOLJNTING POLICIES-(Cont.)
I. Capital Assets-(Cont.)
purchased or constructed. Donated capital assets are recorded at acquisition value at the date of
donation. 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.
Property plant and equipment are depreciated using the straight-line method over the following
estimated useful lives:
Asset Class Years
Infrastructure-Roads 50
Infrastructure-Drainage 20
Infrastructure-Detenrion Ponds 40
Buildings 20-50
Vehicles 5
Equipment 5-10
Other Improvements 25
Cleveland Utilities
Electric Division Water Division
Class Years Class Years
Structures,transmission Structures,transmission and
and distribution systems 33-50 distribution systems 25-50
Equipment 10-20 Equipment 10-20
Transportarion equipment 5 Transportation equipment 5
Cleveland Utilities uses a composite straight-line rate expressed as a percentage of average
depreciable plant. The 2022 rates for the Electric Division and Water Divisions were 3.1%
and 2.8%respectively. When property subject to depreciation is retired or otherwise disposed
of in the normal course of business,its costs,together with the cost of removal less salvage,is
charged to the reserve for depreciation. Replacements of properiy(exclusive of minor items of
properiy)for Cleveland Utilities are charged to utility plant accounts.
Cleveland Utilities Electric and Water Divisions charge a portion of depreciation on certain
transportation equipment to other expense classifications based on relative usage. Depreciation
charged to other accounts was$257,871,and$254,264,for Cleveland Utilities Electric Division and
Water Division,respectively. The following schedule reconciles this allocation of depreciation
expense:
Reconciliation
Depreciarion and amortization per
statement of revenues,expenses
and changes in net position $ 12,174,865
Depreciation charged to clearing account 512,135
Depreciarion and amortization per
statement of cash flows $ 12,687,000
J. Defened outflows/inflows of resources
In addition to assets,the statement of net 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 assets that applies to future periods and so will not
be recognized as an outflow of resources(expense/expenditure)until then. The City has three
items that qualifies for reporting in this category. The first one is the deferred charge on refunding
reported in the government-wide statement of net position. A deferred charge on refunding(loss)
results from the difference in the carrying value of refunded debt and its reacquisition price. This
amount is defened and amortized over the shorter of the life of the refunded or refunding debt.The
second item relates to pension contributions made after the measurement date of the pension liability.
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Note 1 - SUMIviARY OF SIGNIFICANT ACCOLJNTING POLICIES-(Cont.)
J. Deferred outflows/inflows of resources-(Cont.)
These amounts will be recognized as a reduction(increase)in the following measurement period.
The third item relates to pension plans and other post employment benefits and results from
differences between actual and expected experience and earnings on both plans.
In addition to liabilities,the statement of financial position will sometimes report a separate section
for defened inflows of resources. This separate financial statement element,deferred inflows of
resources,represents an acquisition of net assets that applies to future periods and so will not be
recognized as an inflow of resources(revenue)until that time. The City has three types of items that
qualify for reporting in this category. Unavailable revenue is reported in the governmental funds
balance sheet and also the government-wide statement of net position as deferred revenue. This is
comprised of current property taxes(20221evy)at the government-wide level. The governmental
funds report unavailable revenue from property taxes,sales tax and other state taxes and are
recognized as an inflow of resources in the period that they become available. The second item
is the deferred charge on refunding(gain)resulting from the difference in the carrying value of
refunded debt and its reacquisition price. This amount is deferred and amortized over the shorter
of the life of the refunded or refunding debt. The third item relates to pension and opeb liability and
differences beiween acival and expected experience and earnings on both plans.
K. Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. There is no liability for unpaid accumulated sick leave since the government does not
have a policy to pay any amounts when employees separate from service with the govemment.
All vacarion pay is accrued when incurred in the govemment-wide and proprietary fund
financial statements. A liability for these amounts is reported in governmental funds only if
they have matured,for example,as a result of employee resignarions and retirements.
L. Long-term obligations
In the government-wide financial statements and 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. Bond premiums and discounts, as well as issuance costs, are deferred and amortized
over the life of the bonds. Bonds payable are reported net of the applicable bond premium or
discount.
In the fund financial statements,governmental fund types recognize bond premiums and discounts,
as well as bond issuance costs,during the current period. The face amount of debt issued is
reported as other financing sources. Premiums received on debt issuance are reported as other
financing sources while discounts on debt issuance are reported as other financing uses. Issuance
costs,whether or not withheld from the actual debt proceeds received,are reported as debt
service expenditures.
For the purposes of ineasuring the net pension liability,deferred outflows of resources and deferred
inflows of resources related to pension,and pension expense,information about the fiduciary net
position of the CSA and TCRS plans and addirions to/deductions from the plan's fiduciary net pasition
have been determined on the same basis as they are reported by CSA and TCRS. For this purpose,
benefits(including refunds of employee contributions)are recognized when due and payable in
accordance with the benefit terms of the various plans. Investments are reported at fair value.
M. Leases
Leases include copier and computer equipment for periods of up to five years. The discount rate is
based on current borrowing rates.
N. Net Position and Fund Equity
In the government-wide financial statements equity is classified as net position and displayed in three
components:
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Note 1 - SiJMMARY OF SIGNIF'ICANT ACCOITNTING POLICIES-(Cont.)
N. Net Position and Fund Equity-(Cont.)
Net investment in capital assets-Consists of capital assets,including restricted capital assets,net of
accumulated depreciation and reduced by the outstanding balances of any bonds,notes,or other
borrowings that are attributable to the acquisition,construction,or improvement of those assets. As
of June 30,2022,outstanding debt proceeds totaled$20,161,995.
Restricted net position-Consists of amounts with constraints placed on the use either by(1)extemal
groups such as creditors,grantors,contributors,or laws or regulations of other governments or(2)
law through constitutional provisions or enabling legislation.
Unrestricted net position-All other amounts that do not meet the defuution of restricted or invested
in capital assets,net of related debt.
In the fund financial statements,governmental funds report fund balance in classifications that comprise
a hierarchy based primarily on the extent to which the government is bound to honor constraints on the
specific purposes for which amounts in these funds can be spent. These classifications consist of the
following:
Nonspendable Fund Balance-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.
Restricted Fund Balance-includes amounts that have constraints placed on the use of the resources
that are either(a)externally imposed by creditors,grantors,contributors or laws and regulations of
other governments or(b)imposed by law through constitutional provisions or enabling legislation.
Committed Fund Balance-includes amounts that can only be used for specific purposes pursuant to
constraints imposed by formal ordinances by the City Council,the City's highest level of decision-making
authority.
Assigned Fund Balance-includes amounts that are constrained by the City's intent to be used for specific
purposes,but are neither restricted nor committed(excluding stabilization arrangements). The City
Council is the authorized body to make assignments. The Council has by resolution authorized the
finance director to assign fund balance.
Unassigned Fund Balance-the residual classification of the General Fund. This classification represents
fund balance that has not been assigned to other funds and that has not been restricted,committed,or
assigned to specific purposes withi.n the General Fund. The General Fund is the only fund that reports
a positive unassigned fund balance amount. In other governmental fiuids it is not appropriate to report a
positive unassigned fund balance amount. However,in governmental funds other than the general fund,if
� expenditures incurred for specific purposes exceed the amounts that are restricted,committed,or assigned
to those purposes,it may be necessary to report a negative unassigned fund balance in that fund.
When an expenditure is incurred for purposes of which both restricted and unrestricted fund balance is
available,the City considers restricted funds to have been spent first. When an expenditure is incurred
for which committed,assigned,or unassigned fund balances are available,the City considers amounts to
have been spent first out of committed funds,then assigned funds,and finally unassigned funds,as
needed,unless the City Council has provided otherwise in its commitment or assignment actions.
O. Budgets and Budgetary Accounting
Annual budgets are adopted on a basis consistent with generally accepted accounting principles.
The City follows the following procedures in establishing the budgetary data reflected in the
financial statements:
1. The City holds budget hearings in mid March of each year with all department heads submitting
requests. The operating budget includes proposed expenditures and the means of financing
them. Also,a six-year capital budget is presented in conjuncrion with the operating budget.
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Note 1 - SUMMARY OF SIGIVIFICANT ACCOiJNTING POLICIES-(Cont.)
O. Budgets and Budgetary Accounting-(Cont.)
2. At a later date,the City Manager makes a formal presentation to the Council for the finalized budget.
3. Prior to July 1,the budget and property tax rate are due for passage by ordinance.
4. The Finance Director is authorized to transfer budgeted amounts between departments within any
fund;however, any revisions that alter the total expenditures of any fund must be approved by the
City Council. Expenditures may not exceed appropriations at the fund level.
5. Formal legally adopted budgets are employed as a management control device during the year
for all funds except for Cleveland Utilities-Electric and Water Divisions. Budgeted amounts
reflected in the accompanying final budget and actual comparison are as originally adopted and
amended by the City Council.
6. All appropriations which are not expended lapse at year end.
7. During the year,supplementary appropriations were necessary. The effect of the amendments
were to increase budgeted revenues by$18,106,599,increase budgeted expenditures by$47,073,009,
and increase budgeted expenses by$1,085,209. The increase in revenues is primarily from federal grants
and tax revenues received by the City. The increase in budgeted expenditures is a result of the additional
funding.
P. Subsequent Events
Management has evaluated events and transactions that occurred between June 30,2022,and
January 20,2023,which is the date the financial statements were available to be issued,for
possible recognirion or disclosure in the financial statements.
Note 2- DEPOSITS AND INVEST'MENTS
Deposits with financial institutions aze required by State statute to be secured and collateralized by the
institutions. The collateral must meet certain requirements and must have a total minimum market value of
105%of the value of the deposits placed in the institutions less the amount protected by federal depository
insurance. Collateral requirements are not applicable for financial institutions that participate in the State of
Tennessee's collateral pool. All of the City's deposits and investments were covered by federal depository
insurance or by the bank collateral pool administered by the Treasurer of the State of Tennessee.
Cash and cash equivalents included unused bond proceeds at year end totaling$20,151,828 for governmental
activities and$10,167 for business-type activities.
Municipalities are authorized to make direct inveslments in bonds,notes,or treasury bills of the U.S.
government and obligations guaranteed by the U.S.government or any of its agencies;deposits at state and
federal chartered banks and savings and loans associations;bonds of any state or political subdivision rated A
or higher by any nationally recognized rating service;nonconvertible debt securities of certain federal
government sponsored enterprises;and the City's own legally issued bonds or notes. Municipalities are also
authorized to make investments in the State Treasurer's Investment Pool and in repurchase agreements.
Repurchase agreements must be approved by the State Comptroller's Office and executed in accordance with
procedures established by the State Funding Boazd. Securities purchased under a repurchase agreement must
be obligations of the U.S.government or obligations guazanteed by the U.S.government or any of its agencies.
When repurchase agreements are executed,the purchase of the securities must be priced at least two percent
below the fair value of the securities on the day of purchase.
Investment Maturities
Less than One to
Cost One Year Five Years
Certificates of Deposit $ 469,837 $ 0 $ 469,837
Treasury Notes 9,989,660 9,989,660 0
Local Government Investment Pool 4,140 4,140 0
$ 10,463,637 $ 9,993,800 $ 469,837
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Note 2- DEPOSITS AND INVESTMENTS-(Cont.)
Interest rate risk- In accordance with its inveshnent policy,the City manages its exposure to declines in fair
values by limiting the amount invested in long-term investrnents and bidding the amount of interest earned on
checking accounts with area banks.
Credit risk-Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
State statutes limit the ratings of certain investments as previously explained. The City has no investment policy
that would further limit its investment choices.
Concentration of credit risk-Concentration of credit risk is the risk of loss attributed to the magnitude of the
City's invesiment in a single issuer. The City places no limit on the amount that may be invested with one issuer.
Custodial credit risk-Custodial credit risk for investments is the risk that,in the event of a failure of the counterparty
to a transaction,the City will not be able to recover the value of its investinent or collateral securities that are in the
possession of an outside party. The City does not have a formal policy that limits custodial credit risk for investments.
INVESTMENTS-FIDUCIARY FUND
Investments of the opeb trust fund are reported at fair value and classified according to the following hierarchy:
Level 1 -Investments reflect prices quoted in active markets.
Leve12-Investrnents reflect prices that are based on a similar observable asset either directly or indirectly,which may
include inputs in markets that are not considered to be active.
Leve13 -Investments reflect prices based upon unobservable sources.
At June 30,2022,all investments held in the Other Post-employment Benefit Trust have been classified as Level 1 in the
fair value hierarchy as they are valued directly from a predetermined primary extemal pricing vendor utilizing quoted
mazket prices in active markets.
The inveslment strategy is to reduce risk through the prudent diversification of the portfolio across a broad selection of
distinct asset classes. The following investrnents represent more than 5%of the fiduciary net position and are not issued or
explicitly guaranteed by the U.S.government at June 30,2022.
American Beacon Small Cap Value Fund $ 176,054
Clearbridge Intemational Growth 195,209
John Hancock Fund III-International Growth Fund 197,582
Lord Abbett Short Duration Income Fund 322,947
Thomburg Limited Term Income Fund 351,514
Vanguazd Growth Index Fund 380,856
Vanguard High Dividend Yield Index Fund 504,095
Victory Sycamore Established Value I Fund 223,348
For the yeaz ended June 30,2022,the annual money-weighted rate of retum on Opeb plan investment expense
was-14.19%. The money-weighted rate of return expresses investment performance,net of investment expense,
adjusted for the changing amounts actually invested.
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Note 2- DEPOSITS AND INVESTMENTS-(Cont.)
INVESTMENTS-TCRS Stabilization Reserve Trust
Legal Provisions- The Cleveland City Schools are a member of the Tennessee Consolidated Retirement System
(TCRS)Stabilization Reserve Trust. The Schools have placed funds into the irrevocable trust as authorized by statute under
Tennessee Code Annotated (TCA),Title 8,Chapters 34-37. The TCRS Board of Trustees is responsible for the proper
operation and adzninistration of the trust. Funds of trust members are held and invested in the name of the trust for the
benefit of each member. Each member's fiuids aze restricted for the payment of retirement benefits of that member's
employees. Trust funds are not subject to the claims of general creditors of the school department.
The trust is authorized to make investrnents as directed by the TCRS Board of Trustees. The Cleveland City School Board
may not impose any restrictions on investrnents placed by the trust on their behalf.
Investment Balances-Assets of the TCRS,including the Stabilization Reserve Trust,are invested in the Tennessee Retiree
Group Trust(TRGT). The TGRT is not registered with the Securiries and Exchange Commission(SEC)as an investment
company. The State of Tennessee has not obtained a credit quality rating for the TRGT from a nationally recognized credit
ratings agency. The fair value of investment positions in the TRGT is determined daily based on the fair value of the pool's
underlying portfolio. Furthermore,TCRS had not obtained or provided any legally binding guarantees to support the value
of participants shares during the fiscal year. There's are no restrictions on the sale or redemption of shares.
Investments are reported at fair value. Securities traded on a national exchange aze valued at the last reported sales price.
Investment income consists of realized and unrealized appreciation(depreciation)in the fair value of investments and interesl
and dividend income. Interest income is recognized when earned. Securities and securities transactions are recorded in the
financial statements on a trade-date basis. The fair value of assets of the TGRT held at June 30,2022,represents the price
that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants.
Assets held are categorized for fair value measurement within the fair value hierarchy established by GAAP. The hierarchy
is based on the valuation inputs used to measure the fair value of the asset and give the highest priority to unadjusted quoted
prices in active markets for identical assets or liabilities(Level 1 measurements)and the lowest priority to unobservable
inputs(Leve13 measurements).
Level 1 -Unadjusted quoted prices for identical assets and liabilities in active markets that can be accessed at the
measurement date.
Leve12-Quoted prices for similar assets or liabilities in active markets;quoted process for identical or similar assets or
liabilities in markets that are not active;assets or liabilities that have a bid-ask spread price in an inactive dealer market,
brokered market and principal-to principal market;an Level 1 assets or liabilities that are adjusted.
Leve13 -Valuations derived from valuation techniques in which significant inputs are unobservable.
Investments where fair value is measured using the Net Asset Value("NAV")per share have no readily determinable fair
value and have been determined to be calculated consistent with FASB principles for investrnent companies.
Where inputs used in the measurement of fair value fall into different levels of the hierarchy,fair value of the instrument in
its entirety is categorized based on the lowest level input that is significant to the valuation. This assessment requires
professional judgement and as such management of the TRGT developed a fair value committee that worked in conjunction
with the plan's custodian and investment professionals to make these valuations. All assets held were valued individually
and aggregated into classes to be represented in the table below.
Short-term securities generally include investments in money market-type securities reported at cost plus accrued interest.
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Note 2- DEPOSITS AND INVESTMENTS-(Cont.)
Equity and equity derivative securities classified in Level 1 are valued using last reported sales prices quoted in active market
that can be accessed at the measurement date. Equity and equity derivative securities classified in Leve12 are securities
whose values are derived daily from associated traded securities. Equity securities classified in Leve13 are value with last
trade data having limited trading volume.
U.S.Treasury Bills,Bonds,Notes and Futures classified in Level are value using last reported sales prices quoted in active
mazkets that can be accessed at the measurement date. Debt and debt derivative securities classified in Leve12 aze value
using a bid-ask spread price from multiple independent brokers,dealers,or market principals,which are lalown to be actively
involved in the market. Leve13 debt securities aze valued using proprietary information,a single pricing source,or other
unobservable inputs related to similar assets or liabilities.
Real estate invesUnents classified in Leve13 are valued using the last valuarions provided by external investment advisors or
independent external apprai§ers. Generally,all direct real estate investments aze appraised by a qualified independent
appraisers with the professional designation of Member of the Appraisal Instiiute("MAI"),or its equivalent,every three
years beginning from the acquisition date of the properiy. The appraisals aze performed using generally accepted valuation
approaches applicable to the property type.
Investments in private mutual funds,traditional private equity funds,strategic lending funds and real estate funds that report
using GAAP,the fair value,as well as the unfunded commitments,were determined using the prior quarter's NAV,as
reported by the fund managers,plus the cunent cash flows. These assets were then categorized by investment strategy. In
instances where the fund investments reported using non-GAAP standards,the investment was valued using the same
method,but was classified in Leve13.
On June 30,2022,Cleveland City Schools had the following investments held by the trust on its behalf.
Weighted
Average
Maturity Fair
(days) Maturities Value
Investments at Fair Value:
U.S.Equity N/A N/A $ 166,250
Developed Market Intemarional Equity N/A N/A 75,079
Emerging Market Intemational Equity N/A N/A 21,452
U.S.Fixed Income N/A N/A 107,257
Rea1 Estate N/A N/A 53,629
Short-term Securities N/A N/A 5,362
NAV-Private Equity and Strategic Lending N/A N/A 107,257
Total $ 536,286
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Note 2- DEPOSITS AND INVESTMENTS-(Cont.)
Investment by Fair
Value Level Fair Value Level 1 Leve12 Leve13 NAV
U.S.Equity $ 166,250 $ 166,250 $ 0 $ 0 $ 0
Developed Mazket
International Equity 75,079 75,079 0 0 0
Emerging Market
Intemational Equity 21,452 21,452 0 0 0
U.S.Fixed Income 107,257 0 107,257 0 0
Real Estate 53,629 0 0 53,629 0
Short-term Securities 5,362 0 5,362 0 0
Private Equity&
Strategic Lending 107,257 0 0 0 107,257
$ 536,286 $ 262,781 $ 112,619 $ 53,629 $ 107,257
Risk and Uncertainties-The trust's investments include various types of investment funds,which in hun invest in any
combination of stock,bonds and other inveslments exposed to various risks,such as interest rate,credit,and market risk
due to the level of risk associated with certain investrnent securities,it is at least reasonably possible that changes in the
values of investment securities will occur in the neaz term and that such changes could materially affect the amounts
reported for trust investments.
Investrnent Rate Risk-Interest rate risk is the risk that changes in interest ra.tes will adversely affect the fair value of
an investment. The Cleveland City Schools do not have the ability to limit trust investment maturities as a means of
managing its exposure to fair value losses arising from increasing interest rates.
Credit Risk-Credit risk is the risk that an issuer or other counterpariy to an investrnent will not fulfill its obligations.
The Cleveland City Schools do not have the ability to limit the credit ratings of individual inveshnents made by the trust.
Concentration of Credit Risk-Concentration of credit risk is the risk of loss attributed to the magnitude of the School's
investment in a single issuer. The Cleveland City Schools places no limit on the amount the School may invest in one
issuer.
Custodial Credit Risk-Custodial credit risk for investments is the risk that,in the event of a failure of the counterpariy to
a transaction,the School will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. Pursuant to the trust agreement,investments are held in the name of the lrust for the
benefit of the Cleveland City Schools to pay retirement benefits of the Cleveland City Schools employees.
For further information concerning the school deparhnent's investments with the TCRS Stabilization Reserve Trust,audited
financial statements of the Tennessee Consolidated Retirement System may be obtained at
https://comptroller.m.Qov/contenddam/codsa/advanced-search/disclaimer/2020/a lg 9091.pdf.
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Note 3 - RECENABLES
Receivables as of year end for the government's individual major funds,nonmajor,and intemal service funds
in the aggregate,including the applicable allowances for uncollectible accounts are as follows:
Inter- Allowance
govern- Customer for Net
Receivable mental Taxes Accounts Other Uncollectables Receivables
General $ 43,912 $ 32,532,076 $ 0 $ 961,904 $ (484,138) $ 33,053,754
School 9,046,002 2,114,655 0 0 (73,236) 11,087,421
Capital Imp
Program 1,241,740 0 0 0 0 1,241,740
Water 0 0 3,250,029 0 0 3,250,029
Electric 0 0 17,365,986 0 (131,973) 17,234,013
Stormwater 0 0 137,659 0 0 137,659
Nonmajor 3,692,410 0 0 295,084 0 3,987,494
Intemal
Service 0 0 22,589 0 0 22,589
Totals $ 14,024,064 $ 34,646,731 $ 20,776,263 $ 1,256,988 $ (689,347) $ 70,014,699
Cleveland Utilities Electric and Water Divisions recognize revenues based on billings to customers on monthly
meter-reading cycles and also an accrual for the estimate of unbilled revenue for service provided.
Note 4- CAPITAL ASSETS
Capital asset activity for the year ended June 30,2022,was as follows:
$eginniug Ending
Balance Increases Decreases Balance
Governmental activities:
Capital assets not being depreciated:
Land $ 38,073,782 $ 0 $ 0 $ 38,073,782
Construction in progress 7,930,781 6,341,631 (2,949,758) 11,322,654
Total capital assets not being depreciated $ 46,004,563 $ 6,341,631 $ (2,949,758) $ 49,396,436
Capital assets,being depreciated:
Buildings $ 155,949,947 $ 3,246,439 $ (191,887) $ 159,004,499
Improvements other than buildings 27,096,605 1,547,239 (17,777) 28,626,067
Infrastructure 75,771,913 2,001,498 0 77,773,411
Furniture,fixtures,equipment and vehicles 44,610,058 4,330,524 (1,180,744) 47,759,838
Leases-right to use assets 1,584,455 32,234 0 1,616,689
Total capital assets being depreciated $ 305,012,978 $ 11,157,934 $ (1,390,408) $ 314,780,504
Less accumulated depreciation for:
� Buildings $ (48,853,527) $ (3,718,805) $ 14,973 $ (52,557,359)
Improvements other than buildings (8,668,427) (806,497) 504 (9,474,420)
Infrastructure (28,754,768) (1,671,335) 0 (30,426,103)
Furniture,fixh�res,equipment and vehicles (32,550,364) (3,355,642) 1,150,879 (34,755,127)
Leases-right to use assets 0 (450,052) 0 (450,052)
Total accumulated depreciation $ (118,827,086) $ (10,002,331) $ 1,166,356 $ (127,663,061)
Total capital assets being depreciated,net $ 186,185,892 $ 1,155,603 $ (224,052) $ 187,117,443
Governmental activities capital assets,net $ 232,190,455 $ 7,497,234 . $ (3,173,810) $ 236,513,879
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Note 4- CAPITAL ASSETS-(Cont.)
Beginning Ending
Balance Increases Decreases Balance
Business-type activities:
Capital assets not being depreciated:
Land and land rights,easements $ 3,302,702 $ 0 $ 0 $ 3,302,702
Construction work-in-progress 21,240,704 436,453 (1,394,697) 20,282,460
Total capital assets not being depreciated $ 24,543,406 $ 436,453 $ (1,394,697) $ 23,585,162
Capital assets being depreciated:
Plant in service $ 409,547,592 $ 22,728,386 $ (1,016,756) $ 431,259,222
Equipment 167,641 26,150 (55,527) 138,264
Drainage improvements 852,140 1,576,395 0 2,428,535
Leases-right to use assets 64,357 0 0 64,357
Total capital assets being depreciated $ 410,631,730 $ 24,330,931 $ (1,072,283) $ 433,890,378
Less accumulated depreciation for:
Plant in service $ (206,933,675) $ (12,120,959) $ 1,016,756 $ (218,037,878)
Equipment (123,475) (12,350) 55,527 (80,298)
Drainage improvements (101,773) (49,317) 0 (151,090)
Leases-right to use assets (14,310) (18,745) 0 (33,055)
Total accumulated depreciation $ (207,173,233) $ (12,201,371) $ 1,072,283 $ (218,302,321)
Total capital assets being depreciated,net $ 203,458,497 $ 12,129,560 $ 0 $ 215,588,057
Business-type activities capital assets $ 228,001,903 $ 12,566,013 $ (1,394,697) $ 239,173,219
Depreciation and amortization expense was charged to governmental functions as follows:
General government $ 132,726
Development and engineering 67,837
Public safeiy 1,273,851
Public works 2,640,777
Culture and recreation 1,011,778
Education 4,875,362
Total depreciation expense-governmental activities $ 10,002,331
Note 5 - INTERFiTNll RECENABLES,PAYABLES,AND TRA.NSFERS
The composition of interfund balances as of June 30,2022,is as follows:
Receivable Fund Pavable Fund Amount
Debt Service Fund Cleveland Utilities-Electric $ 828,333
General Fund Blythe Sidewallcs Diabetes 40,237
General Fund Community Development
Block Grant Fund 66,385
School Fund School Federal Projects Fund 1,449,609
$ 2,384,564
Of the total interfund receivable/payable balances,$1,671,231,is expected to be repaid within one year.
Transfers and payments within the reporting entity are substantially for the purpose of subsidizing
operating functions,funding capital projects and asset acquisitions,or maintaining debt service on a
routine basis. Resources are accumulated in a fund to support and simplify the administration of various
projects or programs.
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Note 5- INTERFLTND RECENABLES,PAYABLES,AND TRANSFERS-(Cont.)
The following is a schedule of transfers in and transfers out:
Transfers in:
Capital
General School Improvement Nonmajor
Transfers out: Fund Fund Program Governmental Totals
General fund $ 0 $ 5,605,300 $ 2,004,718 $ 8,377,479 $ 15,987,497
School fund 0 0 816,913 0 816,913
Cleveland Urilities-Electric 2,417,873 0 0 0 2,417,873
Cleveland Utilities-Water 486,260 0 0 0 486,260
Nonmajor Governmental 0 3,737 0 447,836 451,573
$ 2,904,133 $ 5,609,037 $ 2,821,631 $ 8,825,315 $ 20,160,116
Transfers are used to move revenues from the fund that statute or budget requires to collect them to the fund that
statute or budget requires to expend them. The City does not designate property taxes when levied but supports
education,debt service,capital outlay and other departments through transfers from the general fund. Cleveland
Utilities Electric and Water Divisions remit tax equivalent payments to the general fund through transfers. Other
transfers from and to nonmajor funds are primarily to support debt service.
Note 6- LONG-TERM DEBT
General Obligation Bonds
The government issues general obligation bonds to provide funds for the acquisition and construction of
major capital faciliries. General obligation bonds have also been issued to refund older issues of general
obligation bonds. General obligation bonds are direct obligations and pledge the full faith and credit of
the government. These bonds generally are issued as a 20-year serial bonds with increasing amounts of
principal maturing each year. General obligation bonds currently outstanding are as follows:
Purpose Interest Rates Amount
Governmenta.l activities 2.00 to 5.00% $ 27,615,000
Governmental activities-refunding 2.00 to 5.00% $ 55,484,000
Annual debt service requirements to maturiiy for general obligation bonds are as follows:
Fiscal Year Total
Endin�;June 30. Principal Interest Requirements
2023 $ 4,993,000 $ 3,485,790 $ 8,478,790
2024 5,208,000 3,215,679 8,423,679
2025 6,003,000 2,963,281 8,966,281
2026 6,220,000 2,674,205 8,894,205
2027 6,805,000 2,357,584 9,162,584
2028-2032 28,140,000 7,167,620 35,307,620
2033-2037 13,870,000 3,278,203 17,148,203
2038-2042 6,110,000 1,733,888 7,843,888
2043-2047 5,750,000 708,000 6,458,000
$ 83,099,000 $ 27,584,250 $ 110,683,250
Revenue Bonds
The government also issues bonds where the government pledges income derived from the acquired or
constructed assets to pay debt service.
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Note 6- LONG-TERM DEBT-(Cont.)
The revenue bonds are collateralized as to payment of principal and interest by a pledge of sufficient
revenues,after deduction of a11 current operating expenses,to meet principal and interest payments
when due. In the event of a deficiency of revenues,the full faith,credit and resources of the City of
Cleveland are irrevocably pledged for the prompt payment of principal and interest when due.Revenue
bonds currently outstanding are as follows:
Purpose Interest Rates Amount
Cleveland Utilities-Water Division 1.00-5.75% $ 29,081,450
Cleveland Utilities-Electric Division 1.00-5.75% 11,803,550
Debt service requirements to maturity for revenue bonds of Cleveland Utilities are as follows:
Fiscal Year Total
Endin�June 30, Principal Interest Requirements
2023 $ 4,185,000 $ 1,627,900 $ 5,812,900
2024 3,705,000 1,463,986 5,168,986
2025 3,610,000 1,294,134 4,904,134
2026 3,280,000 1,132,511 4,412,511
2027 3,290,000 975,303 4,265,303
2028-2032 12,250,000 2,915,547 15,165,547
2033-2037 7,415,000 1,045,535 8,460,535
2038-2042 3,150,000 220,906 3,370,906
$ 40,885,000 $ 10,675,822 $ 51,560,822
Notes Payable-Direct Borrowing-Governmental
The City issues other loans to provide funds for the acquisition and construction of major capital facilities for the primary
government. Capital outlay notes are also issued to fund capital facilities and other capital outlay purchases,such as
equipment. Capital outlay notes and other loans are direct obligarions and pledge the full faith,credit and taxing authority
of the government. Capital outlay notes and other loans outstanding were issued for original terms of up to 20 years.
Repayment terms are generally structured with increasing amounts of principal maturing as interest requirements
decrease over the term of the debt. All notes and loans included in the long-term debt of governmental activities are
being retired from the Debt Service Fund and the Sales Tax Fund.
Capital outlay notes and other loans outstanding as of June 30,2022,for governmental activities are as follows:
Interest Final Original Balance
Type Rate Maturity Issue 6/30/2022
Direct Borrowing:
Public Building Authority-Clarksville T'N Variable 5/25/2028 1,812,700 745,000
Other Loans 1.15 to 2.45% 8/1/2033 5,015,575 1,768,913
Principal requirements to maturity for notes payable accounted for in the governmental activities
for the fiscal year ended June 30,2022,are as follows:
Fiscal Year Total
Endins June 30, Principal Interest Requirements
2023 $ 456,672 $ 130,675 $ 587,347
2024 489,585 119,943 609,528
2025 501,168 108,610 609,778
2026 538,614 96,667 635,281
2027 188,168 23,182 211,350
2028-2032 300,548 16,132 316,680
2033-2037 39,158 374 39,532
$ 2,513,913 $ 495,583 $ 3,009,496
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Note 6- LONG-TERM DEBT-(Cont.)
Notes Payable-Direct Borrowing-Business Type
The City issues other loans to provide fuuds for the acquisition and construction of major improvements
to the Elech-ic and Water Divisions of Cleveland Utilities. The notes are collateralized as to payment of principal
and interest by a pledge of sufficient revenues,a$er deduction of all current operating expenses,to meet principal
and interest payments when due. In the event of a deficiency of revenues,the full faith,credit and resources of
the City of Cleveland are irrevocably pledged for the prompt payment of principal and interest when due.
Repayment terms are generally structured with increasing amount of principal maturing as interest requirements
decrease over the term of the debt. All notes and loans were issued for original terms of 20 years for repayment.
Notes will be retired from the Electric and Water Division enterprise funds.
Capital outlay notes and other loans outstanding as of June 30,2022,for business-type activities are as follows:
Original
Interest Final Amount Balance
Type Rate Maturity of Issue 6/30/2022
Direct Borrowing:
TN State Revolving Loan Fund .88 to 2.08% 06/O1/41 42,352,769 27,385,367
Volunteer Electric 0% 08/31/30 2,151,963 1,841,350
Principal requirements to maturiTy for notes payable accounted for in the business-type activities
for the fiscal year ended June 30,2022,are as follows:
Fiscal Year Total
Ending June 30. Principal Interest Requirements
2023 $ 2,097,228 $ 441,504 $ 2,538,732
2024 2,120,064 418,668 2,538,732
2025 2,137,365 395,544 2,532,909
2026 2,160,777 372,132 2,532,909
2027 2,182,528 348,408 2,530,936
2028-2032 11,027,328 1,375,164 12,402,492
2033-2037 10,536,875 736,770 11,273,645
2038-2042 6,982,956 190,713 7,173,669
$ 39,245,121 $ 4,278,903 $ 43,524,024
Leases-Right to use assets
Leases include office equipment and computer equipment. Leases are recorded as intangible assets and
amortized over the life of the lease. The intangible asset and offsetting liability are recorded at the present value of the
lease payments using an interest factor of 3.0%.
Principal requirements to maturity for leases accounted for in the governmental activities
for the fiscal year ended June 30,2022,are as follows:
Fiscal Year Total
Endin�June 30, Principal Interest Requirements
2023 $ 503,703 $ 32,035 $ 535,738
2024 500,450 17,159 517,609
2025 53,220 2,343 55,563
2026 44,084 775 44,859
2027 5,148 65 5,213
2028-2032 0 0 0
$ 1,106,605 $ 52,377 $ 1,158,982
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Note 6- LONG-TERM DEBT-(Cont.)
Principal requirements to maturity for leases accounted for in the business-type activities
for the fiscal year ended June 30,2022,are as follows:
Fiscal Year Total
Ending June 30, Principal Interest Requirements
2023 $ 19,049 $ 702 $ 19,751
2024 11,715 196 11,911
2025 1,322 5 1,327
2026 0 0 0
2027 0 0 0
2028-2032 0 0 0
$ 32,086 $ 903 $ 32,989
Beginning Ending Due Withi.n
Balance Additions Reductions Balance One Year
Governmental activities:
General obligation bonds $ 68,677,000 $ 19,220,000 $ (4,798,000) $ 83,099,000 $ 4,993,000
Notes payable 3,018,878 455,575 (960,540) 2,513,913 456,672
Leases payable 1,584,455 32,234 (510,084) 1,106,605 503,703
Compensated absences 2,532,680 4,006,796 (3,976,434) 2,563,042 256,304
Less bond discountlpremium 8,989,151 1,025,074 (630,545) 9,383,680 0
Total $ 84,802,164 $ 24,739,679 $ (10,875,603) $ 98,666,240 $ 6,209,679
Bea nn;ng Ending Due Within
Balance Additions Reductions Balance One Year
Business-type activities:
Revenue bonds �$ 42,300,000 $ 2,955,000 $ (4,370,000) $ 40,885,000 $ 4,185,000
Notes payable 2,056,546 0 (215,196) 1,841,350 215,196
State revolving loan fund 24,747,236 3,574,307 (936,176) 27,385,367 1,882,032
Leases payable 50,572 0 (18,486) 32,086 19,049
Conservation advances 1,723,814 438,348 (539,839) 1,622,323 247,153
Lessbonddiscount/premiums 5,113,479 182,856 (461,136) 4,835,199 0
$ 75,991,647 $ 7,150,511 $ (6,540,833) $ 76,601,325 $ 6,548,430
As of June 30,2022,a balance of$10,018,404,is available in loan proceeds to be drawn down on notes as follows:
State revolving loan fund SRF 2018-417-01 $ 8,511,714
State revolving loan fund SRF 2019-431 1,506,690
$ 10,018,404
On May 5,2022,the City of Cleveland on behalf of the Water Division,issued bonds in the principal amount of$2,955,000,
for the purpose of making improvements to the water system. The 2022 Series bonds have a coupon rate between 3.375
and 5.0 percent. The bonds will mature June 1,2042.
On May 6,2022,the City of Cleveland on behalf of the VJastewater Division of Cleveland Utilities entered into a revolving
loan agreement with the Tennessee State Revolving Loan Fund, "SRF 18-417-01"to finance the wastewater rehabilitation
plan. The SRF 18-417-01 loan agreement was for$10,000,000,in the form of a loan of$10,000,000. The loan is to be paid
back over a 20-year period with a fixed interest rate of.73 percent. As of June 30,2022,the Division has drawn down
$1,488,286,of the loan proceeds.
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Note 6- LONG-TERM DEBT-(Cont.)
On May 5,2022,the City issued bonds in the amount of$19,220,000,to fund various capital improvement project to be
undertaken by the City. The bonds are to be paid back over a 25-year period with fixed rates ranging from 3375 to 5.00%.
The bonds will mature June 1,2043.
On September 1,2021,the City of Cleveland issued notes in the amount of$455,575,for the purchase of equipment to be
financed over a four yeaz period. The note was issued at 6.0%interest and will mature September 1,2025.
Compensated absences,postemployment benefit obligations and pension contributions are generally
liquidated by the general fund,school fund,school federal projects fund,school food service fund,library
fund,state street aid fund,and solid waste management fund.
Note 7- JOINT VENTURES
The City of Cleveland,together with Bradley County and the City of Charleston,have created the Bradley County 911
Emergency Communications District to combine Emergency 911 services that were operated separately by each
government. The District boazd consists of ten ex-officio members including:the County Mayor,the City of Cleveland
Mayor,the City of Charleston Police Chief,the County Sheriff,the Cleveland Police Chief,the Cleveland Fire Chief,the
Director of Emergency Medical Services,the Director of the Emergency Management Agency,Cleveland City Manager
and Bradley County Fire Chief,along with three persons appointed by the County Mayor with the approval of the County
Commission and the Ciiy of Cleveland Council. The City has constructed a building and purchased equipment for the
District at a total cost of$1,311,046. The City is financing this endeavor through loans from bond proceeds issued by the
Building Authority of Sevier Couniy,Tennessee. The City is receiving impact payments from the District equal to the debt
service requirements. Separate financial statements aze issued for the District any may be obtained by writing to the Bradley
Bradley County 911 Emergency Communications District,Guthrie Drive,Cleveland,Tennessee 37312.
Note 8- RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Explanation of certain differences between the governmental fund balance sheet and the government-wide
statement of net assets:
The governmental fund balance includes a reconciliation beiween fund balance-total governmental funds
and net position-governmental activities as reported in the government-wide statement of net position. One
element of that reconciliation explains that"long-term liabilities,including bonds,notes payable,compensated
absences,post-employment benefits,pension liability and interest payable are not due and payable in the current
period and therefore are not reported in the funds." The details of this$110,086,104,are as follows:
Bonds payable $ 83,099,000
Notes payable 2,513,913
Leases 1,106,605
Compensated absences 2,563,042
Postemployment benefits 40,211,933
Net pension asset (29,001,457)
Interest payable 209,388
Premium on bonds payable 9,383,680
Net adjustrnent $ 110,086,104
Explanation of certain differences between the governmental fund statement of revenues,expenditures,
and changes in fund balances and the government-wide statement of activities:
The governmental fund statement of revenues,expenditures,and changes in fund balances includes a
reconciliation between net changes in fund balances for total governmental funds and changes in net position
of governmental activities as reported in the government-wide statement of activities. One element of that
reconciliation explains that"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." The details of this$4,547,480,difference are as follows:
Capital outlay $ 14,549,811
Depreciation expense (10,002,331)
Net adjustment $ 4,547,480
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Note 8- RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS-(Cont.)
Another element of that reconciliation states that"Repayment of long-term debt is reported as an
expendiiure in governmental funds,but the repayment reduces long-term liabilities in the statement of
net position." The details of this$6,268,624,difference are as follows:
Principal repayments:
General obligation bonds $ 4,798,000
Notes payable 960,540
Leases-right to use assets 510,084
Net adjustment $ 6,268,624
Note 9- COMNIITMENTS AND CONTINGENCIES
Cleveland Utilities Board is a party to a contract with TVA dated August 17, 1976,under which the
Electric Division purchases its entire requirements for electric power and energy from TVA for
resale. The contract may be terminated by either TVA or the Board at any time upon not less than
five years'written notice.
The Cleveland Utilities Board is a party to a contract with the Hiwassee Utilities Commission(HCTC)
dated June 22,2006 under which the Water Division agrees to purchase an annual quantity of water
equal to an average of 5,335,000 gallons of water per day.
The Cleveland Utilities Board is a pariy to a contract with the Hiwassee Utilities Commission(HUC)
dated January 21, 1982,under which HUC agrees to contract with the Water Division for operating
the water filter plant owned by HUC in Charleston,Tennessee. Cleveland Utilities provides all
necessary functions of the day-to-day operation of the plant. Cleveland Utilities is reimbursed for
all costs incurred in operating the plant plus additional amounts for overhead as called for in the
contract. Cleveland Utiliries is not responsible for property insurance on the HUC facilities.
On September 16,2005,Cleveland Utilities received a Commissioner's Order from the Tennessee
Department of Environment and Conservation. The order deals with the violations of Cleveland
Urilities'NPDES Permit related to overflows in the sewer collection system. Cleveland Utilities reported
the violations listed in the order to TDEC. The Board authorized the utility to engage the services of legal
counsel to appeal the order. The appeal was filed September 21,2005,and on January 25,2006, an
"agreed order"was signed by all parties. The agreed order outlines certain requirements to be undertaken
by the utility to address the violations as they aze listed in the order. In conjunction with the Commissioner's
Order received in 2005,Cleveland Utilities submitted a Capacity,Maintenance,Operations and Management
(CMO1Vn plan to the Tennessee Department of Environment and Conservation(TDEC)for approval. This
document details how Cleveland Utilities will ensure capacity within the wastewater collection system,perform
routine and preventative maintenance,what daily operations are performed by Cleveland Utilities personnel
and how the data is being managed. On September 23,2011,Cleveland Utilities received approval of the
CMOM program. Cleveland Utilities developed the Sirategic Commitment to Protect the Environment
(SCOPE-10)program. This program will manage the CMOM program while also overseeing wastewater
rehabilitation of the collection system. Cleveland Utilities has revised the CMOM document and received
approval of the new CMOM on July 18,2012.
Note 10- LITIGATION
The City generally follows the practice of recording liabilities from claims and legal actions only when
they become fixed or determinable in amount. The City of Cleveland and Cleveland Utilities Electric
and Water Divisions are.involved in certain legal matters,the outcome of which is not presently
determinable. It is the opinion of management,based in part on the advice of legal counsel,that these
matters will not have a material adverse effect on the results of operations or the financial position of
the City and Cleveland Utilities.
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Note 11 - TENNESSEE VALLEY AUTHORITY(TVA)CONSERVATION PROGRAMS
Cleveland Utilities-Elech�ic Division is a fiscal intermediary for TVA conservation programs. Under
these programs,the Division obtains advances from TVA to administer loans to qualified customers
approved by TVA. The repayment of the customer loans is based on monthly amortization schedules
ranging from three to ten years. The TVA advances are repaid monthly as payments are received on
outstanding customer loans. Amounts billed monthly to customers but not yet received are included in
Accounts Receivable-other. All other amounts are reported as long-term. TVA assumes all credit
risks under these programs. Effective June 30, 1997,TVA sold its loans to First A.merican National
Bank which was acquired by Regions Bank during the year ended June 30,2000. This sale changes
the parties to the arrangement described above but does not change the Board's role as a fiscal
intermediary.
Note 12- RISK MANAGEMENT
It is the policy of the City to purchase commercial insurance for the risks of losses to which it is
exposed. The City has commercial insurance coverage for properly,employee theft,and major
equipment. The City is also a member of the Tennessee Municipal League Risk Management Pool
and receives coverage for worker's compensation claims and general liability. The City pays an
annual premium to the Tennessee Municipal League(TML)for its insurance coverage. The creation
of the TML Risk Management Pool provides for it to be self-sustaining through member premiums.
Settled claims from losses have not exceeded insurance coverage in any of the past three fiscal years.
Beginning August 1,2015,liabilities for employee medical benefits are partially self-insured for Cleveland
Utilities and various departments of the City,other than the Board of Education which is continuing coverage
through commercial policies. Plan costs include medical claims,prescription drug claims,stop loss insurance
coverage,and fixed medical cost premiums. The total estimated liability as of June 30,2021,is$443,858. The
liability has been calculated based upon subsequent claim payments. Changes in claims liability for the current
year are summarized below.
Health
Cleveland Insurance
Utilities Trust Total
Claims liability at 6/30/21 $ 111,896 $ 331,962 $ 443,858
Current year claims and estimate changes 4,603,706 2,952,495 7,556,201
Claims paid (4,616,917) (2,944,495) (7,561,412)
Claims liability at 6/30/22 $ 98,685 $ 339,962 $ 438,647
Note 13- DEFERRED COMPENSATION PLAN
During fiscal year ended June 30, 1998,the City of Cleveland implemented GASB Statement No.32,
Accounti.ng and Financial Reporting for Intemal Revenue Code Section 457 Deferred Compensation Plans.
This Statement rescinds GASB No.2,Financial Reporting of Deferred Compensation Plans Adopted
under the Provision of Intemal Revenue Code Section 457. The effect of the new statement is to eliminate
the requirement for statement presentation and note disclosure for plans that are held in trust and meet the
requirements of Section 457(g).
Note 14- ESTIlVIATES
Management uses estimates and assumptions in preparing financial statements. Those estimates and
assumptions affect the reported amounts of assets and liabilities,the disclosure of contingent assets
and liabilities,and the reported revenues and expenses.
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Note 15- TAX ABATEMENTS
In recent years the City has entered into PILOT Programs with various industries as a way to stimulate the
local economy,promote industrial expansion and create jobs. T'he Payment in Lieu of Taxes(PILOT)is
designed as an incentive program which allows an industry to pay less than what is owed in property taxes
for a period of time. This frees up funds which the business or industry agrees to invest in the local
community. This PILOT Program is authorized under Tennessee Code Annotated 7-53-305. For each
yeaz the PILOT Program is in effect,businesses are billed based upon an agreed upon percentage of the
total tax they would have paid. For the current fiscal year,six businesses paid taxes totaling$785,854,
based on a total potential tax of$1,734,478.
Note 16- RETIREMENT COMMITMENTS
TI�TCRS PENSION PLAN
Plan Description. Certain employees of the City of Cleveland are provided a defined benefit
pension plan through the Public Employee Retirement Plan,an agent multiple-employer pension plan
administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated
Title 8,Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and
administrarion of the TCRS. The Tennessee Treasury Deparhnent,an agency in the legislative branch
of state government,administers the plans of TCRS. The TCRS issues a publicly available financial report
that can be obtained at https://treasury.tn.gov/RetirementBoards-and-Governance/Reporting-and-Investrnent-Policies.
Benefits provided. Tennessee Code Annotated Title 8,Chapters 34-37 establishes the benefit terms and
can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit
terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5 years of
service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using
the member's highest five consecutive year average compensation and the member's years of service credit.
Reduced benefits are early retirement are available at age 55 and vested. Members vest with five years of
service credit. Service related disability benefits are provided regardless of length of service. Five years of
service is required for non-service related disability eligibility. The service related and non-service related
disability benefits are deternained in the same manner as a service retirement benefit but are reduced 10
percent and include projected service credits. A variety of death benefits are available under various
eligibility criteria.
Member and beneficiary annuitants are entitled to automatic cost of living adjustments(COLAs)after
retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous
year. The COLA is based on the change in the consumer price index(CPn during the prior calendar
year,capped at 3 percent,and applied to the current benefit. No COLA is granted if the change in the
CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half
and one percent. A member who leaves employment may withdraw their employee contributions,plus any
accumulated interest.
Employees covered by benefit terms. At the measurement date of June 30,2021,the following
employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits 517
Inactive employees entitled to but not yet receiving benefits 400
Active employees 760
1,677
Contributions. Contributions for employees are established in the sta.tutes governing the TCRS and may only
be changed by the Tennessee General Assembly. The City of Cleveland makes employer contributions at
the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30,
• 2022,employer contributions were 7,557,627,based on a rate of 20.68 percent of covered payroll for public
safety employees and 17.18 percent of covered payroll for all other employees under the plan. By law,
employer contriburions are required to be paid. The TCRS may intercept Cleveland City's state shared taxes
if required employer contributions aze not remitted. The employer's actuarially determined contribution(ADC)
and member contributions are expected to finance the costs of benefits earned by members during the yeaz,the
cost of administration,as well as an amortized portion of any unfunded liability.
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Note 16- RETIREMENT COMIVIITMENTS-(Cont.)
THE TCRS PENSION PLAN-(Cont.)
Net Pension Liability
Cleveland City's net pension liability was measured as of June 30,2021,and the total pension liability used to
calculate net pension liability was determined by an actuarial valuation as of that date.
Actuarial assumptions. The tota.l pension liability as of the June 30,2021,actuarial valuation was determined
using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation 2.25 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age,including inflation,averaging 4.00 percent
Investment rate of reiurn 6.75 percent,net of pension plan invesiment expenses,
including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustrnent for some anticipated improvements.
The actuarial assumptions used in the June 30,2021, actuarial valuation were based on the results of an actuarial
experience study performed for the period July 1,2016 through June 30,2020. The demographic assumptions
were adjusted to more closely reflect actual and expected future experience.
Changes of assumptions. In 2021,the following assumptions were changed: decreased inflation rate from 2.50
percent to 2.25 percent;decreased the inveshnent rate of return from 7.25 percent to 6.75 percent;decreased the
cost-of-living adjustrnent from 2.25 percent to 2.125 percent;and modified mortality assumptions.
The long-term expected rate of return on pension plan investrnents was established by the TCRS Board of
Trustees in conjunction with the June 30,2020,actuarial experience study. A blend of future capital market
projections and historical market retums was used in a building-block method in which a best-estimate of expected
future real rates of retum(expected returns,net of pension plan investment expense and inflation)is developed
for each major asset class. These best-estimates are combined to produce the long-term expected rate of return
by weighting the expected future real rates of retlun by the target asset allocation percentage and by adding
expected inflation of 2.25 percent. The best-estimates of geometric real rates of return and the TCRS investment
policy target asset allocation for each major asset class aze summarized in the following table:
Long-Term Expected Tazget
Asset Class Real Rate of Retum Allocation
U.S.equity 4.88% 31%
Developed market international equity 537% 14%
Emerging market international equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S.fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investrnents was established by the TCRS Boazd of
Trustees as 6.75 percent based on a blending of the factors described above.
Discount rate. The discount rate used to measure the total pension liability was 6.75 percent. The projection
of cash flows used to determine the discount rate assumed that employee contributions will be made at the
current rate and that contributions from Cleveland City will be made at the actuarially determined contribution
rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees
and as required to be paid by state statute. Based on those assumptions,the pension plan's fiduciary net
-85-
Note 16- RETIREMENT CONIIVIITMENTS-(Cont.)
THE TCRS PENSION PLAN-(Cont.)
position was projected to be available to make projected future benefit payments of current active and
inactive 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.
Changes in the Net Pension Liability(Asset)
Total Pension Plan Fiduciary Net Pension
. Liability Net Position Liability
(a) (b) (a)'(b)
Balance at 6/30/20 $ 172,394,186 $ 153,889,198 $ 18,504,988
Changes for the year:
Service cost $ 3,067,349 $ 0 $ 3,067,349
Interest 12,455,312 0 12,455,312
Difference between expected and actual experience (973,078) 0 (973,078)
Changes in assumptions 12,101,192 0 12,101,192
Conti-ibutions-employer 0 7,074,310 (7,074,310)
Net investinent income 0 39,657,269 (39,657,269)
Benefit payments (7,328,245) (7,328,245) 0
Administrative expenses 0 (66,700) 66,700
Net changes $ 19,322,530 $ 39,336,634 $ (20,014,104)
Balance at 6/30/21 $ 191,716,716 $ 193,225,832 $ (1,509,116)
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension
liability of Cleveland City calculated using the discount rate of 6.75 percent,as well as what the net pension
liability would be if it were calculated using a discount rate that is 1-percentage-point lower(5.75 percent)or
1-percentage-point higher(7.75 percent)than the cturent rate:
Current
1%Decrease Discount Rate 1%Increase
(5.75%) (6.75%) (7.75%)
Cleveland City's net pension liability $ 25,112,624 $ (1,509,116) $ (23,607,119)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
Pension expense. For the year ended June 30,2022,Cleveland City recognized negative pension expense of$1,679,486.
Deferred outIlows of resources and deferred inflows of resources. For the year ended June 30,2022,the
City of Cleveland reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 1,487,802 $ 810,898
Net difference between projected and actual earnings
on pension plan investments 0 21,165,845
Change in assumptions 10,690,392 0
Conti ibutions subsequent to the measurement date of
June 30,2021 7,557,627 0
Total $ 19,735,821 $ 21,976,743
The amount shown above for"Contriburions subsequent to the measurement date of June 30,2021,"will be
recognized as a reduction to net pension liability in the following measurement period.
-86-
Note 16- RETIREMENT CONIIvIITMENTS-(Cont.)
THE TCRS PENSION PLAN-(Cont.)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year ended June 30:
2023 $ (2,091,709)
2024 (2,852,971)
2025 (2,927,455)
2026 (3,781,104)
2027 1,854,685
Thereafter 0
In the table shown above,positive amounts will increase pension expense while negative amounts will
decrease pension expense.
Payable to Pension Plan
At June 30,2022,the City of Cleveland did not have a payable balance of contriburion to the plan.
CLEVELAND UTILIT'IES-CSA PENSION PLAN
Plan description. All employees of the Cleveland Utilities-Electric Division hired prior to October 15, 1993,
participate in an agent multiple-employer pension plan administered by the Central Service Association
(the"CSA Plan"). The CSA Plan provides retirement benefits to plan members. Section 5.1 &5.2 of the Pension
Plan for employees of Central Service Association("CSA")assigns the authority to establish and amend benefit
provisions to the CSA Board of Directors. The Board will serve as the"Plan Sponsor,"in regard to employees
participating in the plan(active and retired)and CSA shall continue to serve as the"Plan Administrator." CSA
issues a publicly available financial report that includes financial statements and required supplementary
information for the CSA plan. That report may be obtained by writing Central Service Association,P.O.Box
3480 Tupelo,MS 38803-3480 or by calling(662)842-5962.
On October 1,2005, Cleveland Utiliries-Electric Division withdrew from the CSA Non-governmenta.l plan in a
spin offwhereby assets and liabilities were transferred into the Central Service Association Pension Plan for
Governmental Employees,a new tax-qualified multiple employer defined benefit pension plan that is maintained
as a governmental plan(as defined under section 414(d)of the Intemal Revenue Code). The CSA Govemmental
Plan is substantially the same as the CSA Non-governmental plan with certain exceptions,including,but not limited
to,(1)the CSA Governmental Plan will not be subject to any PBGC requirements,(2)benefits under the CSA
Governmental Plan will not be insured by the PBGC,and(3)the CSA Governmental Plan will not be subject to the
additional deficit reduction contribution funding requirements of Code Section 412(1).
Benefits provided Members are eligible to retire with an unreduced benefit at age 60 with 5 years of service
credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using a member's
highest five consecutive year average compensation and the member's years of service credit. Reduced benefits
for early retirement are available at age 55 and vested. Members vest with five years of service credit. No
disability benefits are payable under the plan. There is no provision for Cost-of-living adjustments(COLAs).
Employees covered by benefit term. At the measurement date of October 1,2021,the following employees were
covered by the benefit terms.
Inactive employees or beneficiaries currently receiving benefits 78
Inactive employees entitled to but not yet receiving benefits 2
Active employees 9
89
-87-
Note 16- RETIREMENT COMMITMENTS-(Cont.)
CLEVELAND UTILITIES-CSA PENSION PLAN-(Cont.)
Contributions. Contributions for employees are based on an actuarially determined amount. The contribution
requirements of the Board are established and may be amended by the CSA Board of Directors. The employer's
actuarially detern�ined contribution(ADC)is expected to finance the costs of benefits eamed by members during
the year,the cost of administration,as well as amortized portion of any unfunded liability.
Net Pension Liability
Cleveland Utilities net pension liability was measured as of October 1,2021,and the total pension liability used to
calculate net pension liability was determined by an actuarial valuation as of that date.
Actuarial assumptions. The total pension liability as of October 1,2021,actuarial valuation was determined using
the following assumptions,applied to all periods included in the measurement:
Discount rate 7.00%
Salary scale 3.50%. The prior valuation assumed 3.00%per year.
Overtime It is assumed that overtime will continue to be earned at 100%of the prior
year's level.
Funding method Individual Entry Age Normal
Mortality Pub-2010 General Amount-Weighted table fully-generarional with
projection scale MP-2020 for all participants except beneficiaries.
Beneficiaries are valued using the Pub-2010 Amount-Weighted
Contingent Survivor fully-generational with projection scale MP-2020.
The prior valuarion used RP-2000 Fully Generational with Scale AA.
Incident of Disability 1985 CIDA Table-Class 2. The prior valuation used 50% 1952
Disability Table,Period 2,Benefit 5,with a 6 month waiting period.
Assumed retirement age 25%at ages 57-61;50%at ages 62-64; 100%at age 65. The prior
valuation used 50°/a at Plan Retirement/50%at age 65.
Mamage It is assumed that 50%of participants are married and that a male is 3
years older than his female spouse. The prior valuation assumed that
80%of participants were married.
Turnover For all employees: Sarason T-3 table. The prior valuarion used "
Termination Table T-5 with a five year setback for females.
Cost-of-living increases N/A
Date of participation freeze 10/14/1993
Discount rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cash
flows used to determine the discount rate assumes that employee contributions will be made at the current
contribution rate and the employer will continue to contribute the actuarially determined contribution in
accordance with the Plan's current funding policy on an annual basis. Based on that assumption,the pension
plan's fiduciary net position is projected to be available to make all projected future payments of current active
and inactive employees. Therefore,the long-term expected rate of return on pension plan investrnents was
applied to all periods of projected benefit payments to determine the total pension liability.
-88-
Note 16- RETIREMENT COMMITMENTS-(Cont.)
CLEVELAND UTILITIES-CSA PENSION PLAN-(Cont.)
Changes in the Net Pension Liability
Total Pension Plan Fiduciary Net Pension
Liability Net Position Liability
(a) (b) (a)-(b)
Balance at 10/O1/20 $ 35,815,783 $ 29,259,959 $ 6,555,824
Changes for the year:
Service cost $ 66,376 $ 0 $ 66,376
Interest 2,416,904 0 2,416,904
Difference between expected and actual experience (288,243) 0 (288,243)
Assumption Changes 57,079 0 57,079
Contributions-employer 0 2,002,365 (2,002,365)
Net Investment income 0 5,315,190 (5,315,190)
Benefit payments (2,709,933) (2,709,933) 0
Other chazges 0 (2,702) 2,702
Net changes $ (457,817) $ 4,604,920 $ (5,062,737)
Balance at 10/O1/21 $ 35,357,966 $ 33,864,879 $ 1,493,087
Sensitivity of the net pension liability to changes in the discount rate. The following presents the net pension
liability of the CSA plan calculated using the discount rate of 7.0 percent,as well as what the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower(6.0 percent)or
1-percentage-point higher(8.0 percent)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
(6.0%) (7.0%) (8.0%)
CSA plan net pension liability $ 4,767,485 $ 1,493,807 $ (1,326,104)
Pension Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to
Pensions:
Pension expense. For the year ended June 30,2022,Cleveland Utilities recognized pension expense of
$282,780.
Deferred outflows of resources and deferred inflows of resources. For the year ended June 30,2022,Cleveland Utilities
reported deferred outflows of resources and defened inflows of resources related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 293,589 $ 230,594
Changes of assumption 716,300 0
Net difference between projected and actual eamings
on pension plan investments 0 2,489,411
Contributions subsequent to the measurement date of
October 1,2021 1,572,692 0
Total $ 2,582,581 $ 2,720,005
The amount shown above for"Contributions subsequent to the measurement date of October 1,2021,"will be
recognized as a reduction to net pension liability in the following measurement period.
-89-
Note 16- RETIREMENT COMIVIITMENTS-(Cont.)
CLEVELAND UTILITIES-CSA PENSION PLAN-(Cont.)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions
will be recognized in pension expense as follows:
Year ended June 30:
2023 $ (162,434)
2024 (330,052)
2025 (513,015)
2026 (704,615)
2027 0
Thereafter 0
In the table shown above,positive amounts will increase pension expense while negative amounts will
decrease pension expense.
Payable to Pension Plan
At June 30,2022,no contributions were payable to the plan.
TEACHERS LEGACY PENSION PLAN OF TCRS
Plan description. The Tennessee Consolidated Retirement System(TCRS)was created by state statute under
Tennessee Code Annotated Title 8,Chapters 34-37. The TCRS Board of Trustees is responsible for the proper
operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department,an
agency in the legislative branch of state government,administers the plans of the TCRS. The TCRS issues a
public ally available financial report that can be obtained at https://treasury.ln.�ov/Retirement/Boards-and-Govemance/
Reporting-and-Investment-Policies.
Teachers employed by Cleveland Ciiy Schools with membership in the TCRS before July 1,2014,are provided with
pensions through the Teacher Legacy Pension Plan,a cost sharing multiple-employer pension plan administered by
the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30,2014,but will continue providing
benefits to eacisting members and retirees.
The Teacher Retirement Plan became effective July 1,2014 for teachers employed by Local Education Agencies
(LEAs)after June 30,2014. The Teacher Retirement Plan is a separate cost-sharing,multiple-employer defined
benefit plan.
Bene�ts provided. Tennessee Code Annotated Title 8.Chapters 34-37 establishes the benefit terms and can be
amended only by the Tennessee General Assembly. Members of the Teacher Legacy Pension Plan are eligible
to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit
regardless of age. Benefits are determined by a formula using the member's highest five consecutive year average
compensarion and the member's years of service credit. A reduced early retirement benefit is available at age 55
and vested. Members are vested with five years of service credit. Service related disability benefits are provided
regardless of length of service. Five years of service is required for non-service related disability eligibility. The
service related and non-service related disability benefits aze determined in the same manner as a service retirement
benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available
under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments
(COLAs)after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous
year. The COLA is based on the change in the consumer price index(CPI)during the prior calendar year,capped
at 3 percent,and applied to the current benefit. No COLA is granted if the change in the CPI is less than one-half
percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A
member who leaves employment may withdraw their employee contributions,plus any accumulated interest.
-90-
Note 16- RETIREMENT COMIVIITMENTS-(Cont.)
TEACHERS LEGACY PENSION PLAN OF TCRS-(Cont.)
Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be
changed by the Tennessee General Assembly. Teachers contribute 5 percent of salary. T'he Local Education
Agency(LEAs)make employer contributions at the rate set by the Board of Trustees as determined by an actuarial
valuation. By law,employer contributions for the Teacher Legacy Pension Plan are required to be paid. The
TCRS may intercept the state shared taxes of the sponsoring governmental enrity of the LEA if the required
employer contributions are not remitted. Employer contributions by Cleveland City Schools for the yeaz ended
June 30,2022 to the Teacher Legacy Pension Plan were$2,192,564,which is 10.30 percent of covered payroll.
The employer rate,when combined with member contributions,is expected to finance the costs of benefits earned
by members during the year,the cost of administration,as well as an amortized portion of any unfunded liability.
Pension Liabilities(Assets),Pension Expense,and Deferred Outflows of Resources and Deferred Inflow of
Resources Related to Pensions:
Pension asset. At June 30,2022,The Cleveland City Schools reported an asset of$27,522,167,for its proportionate
share of net pension liability. The net pension liability was measured as of June 30,2021,and the total pension liability
used to calculate the net pension liability was determined by an actuarial value as of that date. Cleveland City Schools'
proportion of the net pension liability was based on Cleveland City Schools'share of contributions to the pension plan
relative to the contributions of all participating LEAs. At the measurement date of June 30,2021,Cleveland City
Schools'proportion was 0.638086 percent. The proportion measured as of June 30,2020,was 0.643551 percent.
Pension expense. For the year ended June 30,2022,Cleveland City Schools recognized pension expense
of($4,237,819).
Deferred outflows of resources and deferred inflows of resources. For the year ended June 30,2022,Cleveland
City Schools reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 92,489 $ 2,295,438
Change in assumptions 7,353,463 0
Net difference between projected and actual earnings
on pension plan investments 0 21,948,314
Changes in proportion of Net Pension Liability(Asset) 43,090 11,009
Contributions subsequent to the measurement date of
June 30,2021 2,192,564 0
Total $ 9,681,606 $ 24,254,761
Cleveland City Schools employer contributions of$2,192,564,reported as pension related deferred outflows
of resources,subsequent to the measurement date,will be recognized as an increase in net pension liability in the
year ended June 30,2023. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
Year ended June 30:
2023 $ (3,971,018)
2024 (3,779,279)
2025 (3,092,205)
2026 (5,923,218)
2027 0
Thereafter 0
In the table shown above,positive amounts will increase pension expense while negative amounts will
decrease pension expense.
-91 -
Note 16- RETIREMENT COD�IIVIITMENTS-(Cont.)
TEACHERS LEGACY PENSION PLAN OF TCRS-(Cont.)
Actuarial assumptions. The total pension liability as of the June 30,2021, the actuarial valuation was determined
using the following actuarial assumptions,applied to all periods included in the measurement:
Inflation 2.5 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based
on age,including inflation,averaging 4.00 percent
Investment rate of return 6.75 percent,net of pension plan investment expenses,
including inflation
Cost-of-living adjustment 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated improvement.
The actuarial assumptions used in the June 30,2021,actuarial valuation were based on the results of an actuarial
experience study performed for the period July 1,2016,through June 30,2020. As a result of the 2020
actuarial experience study,investment and demographic assumptions were adjusted to more closely reflect �
actual and expected future experience.
Changes of assumptions. In 2021,the following assumptions were changed:decreased inflation rate from 2.50
percent to 2.25 percent;decreased the investment rate of return from 7.25 percent to 6.75 percent;decreased the
cost-of-living adjustment from 2.25 percent to 2.125 percent;and modified mortality assumptions. In 2017,the
following assumptions were changed:decreased inflation rate from 3.00 percent to 2.50 percent;decreased the
investrnent rate of return from 7.50 percent to 7.25 percent;decreased the cost-of-living adjustrnent from 2.50
percent to 2.25 percent;decreased salary growth graded ranges from an average of 4.25 percent to an average of
4.00 percent;and modified assumptions.
The long-term expected rate of retum on pension plan investments was established by the TCRS Board of
Trustees in conjunction with the June 30,2020,actuarial experience study. A blend of future capital market projections
and historical market returns was used in a building-block method in which a best-estimate of expected fuiure real rates
of return(expected returns,net of pension plan investrnent expense and inflation)is developed for each major
asset class. These best-estimates are combined to produce the long-term expected rate of return by weighting the
expected future real rates by the target asset allocation percentage and by adding expected inflation of 2.25 percent.
The best-estimates of geometric real rates of return and the TCRS investment policy target asset allocation for each
major asset class are summarized in the following table:
Long-Term Expected Target
Asset Class Real Rate of Return Allocation
U.S.equity 4.88% 31%
Developed market intemational equity 537% 14%
Emerging market intemational equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S.fixed income 1.20% 20%
Real estate 438% 10%
Short-term securities 0.00°/a 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS Board of
Trustees as 6.75 percent based on a blending of the three factors described above.
Discount rate. The discount rate used to measure the total pension liability was 6.75 percent. The projection
of cash flows used to determine the discount rate assumed that employee contriburions will be made at the
current rate and that contributions from all LEAs will be made at the actuarially determi.ned contribution rate
pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as
required to be paid by state statute. Based on those assumptions,the pension plan's fiduciary net position was
-92-
Note 16- RETIlZEMENT COMMITMENTS-(Cont.)
TEACHERS LEGACY PENSION PLAN OF TCRS-(Cont.)
projected to be available to make projected future benefit payments of current active and inactive 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.
Sensitivity of the net pension liability(asset)to changes in the discount rate. The following presents Cleveland
City Schools'proportionate share of the net pension liability(asset)calculated using the discount rate of 6.75
percent,as well as what Cleveland City Schools'proportionate share of the net pension liability(asset)would be
if it were calculated using a discount rate that is 1-percentage-point lower(5.75 percent)or 1-percentage-point
higher(7.75 percent)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
(5.75%) (6.75%) (7.75%)
Cleveland City Schools'proportionate
share of the net pension liability(asset) $ (4,898,020) $ (27,522,167) $ (46,349,971)
Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is
available in a separately issued TCRS financial report.
Payable to the Pension Plan
At June 30,2022,no payments were payable to the plan.
TEACHERS RETIREMENT PLAN OF TCRS
Plan description. The Tennessee Consolidated Retirement System(TCRS)was created by state statute under
Tennessee Code Annotated Title 8,Chapters 34-37. The TCRS Board of Trustees is responsible for the proper
operation and administration of all employer pension plans in the TCRS. The Tennessee Treasury Department,an
agency in the legislative branch of state government,administers the plans of the TCRS. The TCRS issues a
public ally available financial report that can be obtained at https://treasur�gov/RetirementBoards-and-Govemance/
Reportin�-and-Investment-Policies.
Teachers employed by Cleveland City Schools with membership in the TCRS before July 1,2014,are provided with
pensions through the Teacher Legacy Pension Plan,a cost sharing multiple-employer pension plan administered by
the TCRS. The Teacher Legacy Pension Plan closed to new membership on June 30,2014,but will continue providing
benefits to existing members and retirees. The Teacher Retirement Plan became effective July 1,2014 for teachers
employed by Local Education Agencies(LEAs)after June 30,2014. The Teacher Retirement Plan is a separate
cost-sharing,multiple-employer defined benefit plan.
Bene�ts provided. Tennessee Code Annotated Title 8,Chapters 34-37 establishes the benefit terms and can be
amended only by the Tennessee General Assembly. Members of the Teacher Retirement Plan are eligible to
retire with an unreduced benefit at age 65 with 5 years of service credit or pursuant to the rule of 90 in which the
member's age and service credit tota190.
Benefits are determined by a formula using the member's highest five consecurive years average compensation and
the member's years of service credit. A reduced early retirement benefit is available at age 60 and vested or pursuant
to the rule of 80. Members are vested with five years of service credit. Service related disability benefits are
provided regazdless of length of service. Five years of service is required for non-service related disability eligibility.
The service related and non-service related disability benefits are determined in the same manner as a service
retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are
available under various eligibility criteria. Member and beneficiary annuitants are enritled to automatic cost of living
adjustments(COLAs)after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July
of the previous year. The COLA is based on the change in the consumer price index(CPI)during the prior calendar
year,capped at 3 percent,and applied to the current benefit. No COLA is granted if the change in the CPI is less
than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one
percent. A member who leaves employment may withdraw their employee contributions,plus any accumulated
-93 -
Note 16- RETIREMENT COMMITMENTS-(Cont.)
TEACHERS RETIREMENT PLAN OF TCRS-(Cont.)
interest. Under the Teacher Retirement Plan,benefit terms and conditions,including COLAs,can be adjusted on
a prospective basis. Moreover,there are defined cost controls and unfunded liability controls that provide for the
adjustment of benefit terms and conditions on an automatic basis.
Contributions. Contributions for teachers are established in the statutes governing the TCRS and may only be
changed by the Tennessee General Assembly or by automatic cost controls set out in law. Teachers contribute
5 percent of salary. The LEAs make employer contributions at the rate set by the Board of Trustees as determined
by an actuarial valuation. Per the statutory provisions governing the TCRS,the employer contribution rate cannot be
less than 4 percent,except for in years when the maximum funded level,approved by the TCRS Boazd of Trustees,
is reached. By law,employer contributions for the Teacher Retirement Plan are required to be paid. The TCRS
may intercept the state shazed taxes of the sponsoring governmental entity of the LEA if the required contributions
are not remitted. Employer contributions for the yeaz ended June 30,2022 to the Teacher Retirement Plan were
$163,929,which is 2.05 percent of covered payroll. The employer rate,when combined with member contributions,
is expected to finance the costs of benefits earned by members during the year,the cost of adm.inistration,as well
as an amortized portion of any unfunded liability.
Pension Liabilities(Assets),Pension Expense,and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions:
Pension asset. At June 30,2022,The Cleveland City Schools reported an asset of$502,776,for its proportionate
share of net pension asset. The net pension liability was measured as of June 30,2021,and the total pension asset
used to calculate the net pension asset was determined by an actuarial value as of that date. Cleveland City Schools'
proportion of the net pension asset was based on Cleveland City Schools'share of contributions to the pension plan
relative to the contributions of all participati.ng LEAs. At the measurement date of June 30,2021,Cleveland City
Schools'proportion was 0.464153 percent. The proportion measured as of June 30,2020 was 0.430495 percent.
Pension expense. For the year ended June 30,2022,Cleveland City Schools recognized pension expense
of $58,717.
Deferred outflows of resources and deferred inflows of resources. For the year ended June 30,2022,Cleveland
City Schools reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 8,747 $ 91,998
Net difference between projected and actual earnings
on pension plan investments 0 289,412
Change in assumptions 181,347 0
Changes in proportion of net pension liability(Asset) 2,106 28,285
Contributions subsequent to the measurement date of
June 30,2021 163,929 0
Total $ 356,129 $ 409,695
Cleveland City Schools employer contributions of$163,929,reported as pension related deferred outflows
of resources,subsequent to the measurement date,will be recognized as an increase in net pension liability in the
year ended June 30,2023. Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense as follows:
-94-
Note 16- RETIREMENT COMMITMENTS-(Cont.)
TEACHERS RETIREMENT PLAN OF TCRS-(Cont.)
Yeaz ended June 30:
2023 $ (65,909)
2024 (64,324)
2025 (63,873)
2026 (71,156)
2027 6,037
Thereafter 41,729
In the table shown above,positive amounts will increase pension expense while negative amounts will
decrease pension expense.
Actuarial assumptions. The total pension liability as of the June 30,2021,actuarial valuation was determined
using the following actuarial assumptions,applied to all periods included in the measurement:
Inflarion 2.25 percent
Sa1ary increases Graded salary ranges from 8.72 to 3.44 percent based
on age,inbluding inflation,averaging 4.00 percent
Investment rate of return 6.75 percent,net of pension plan investment expenses,
Cost-of-living adjustinent 2.125 percent
Mortality rates were based on actual experience including an adjustment for some anticipated improvement.
The actuarial assumptions used in the June 30,2021,actuarial valuation were based on the results of an actuarial
experience study performed for the period July 1,2016,through June 30,2020. The demographic assumptions
were adjusted to more closely reflect actual and expected future experience.
Changes of assumptions. In 2021,the following assumptions were changed: decreased inflation rate from 2.50
percent to 2.25 percent;decreased the investment rate of return from 7.25 percent to 6.75 percent;decreased the
cost-of-living adjustrnent from 2.25 percent to 2.125 percent;and modified mortality assumptions. In 2017,the
following assumptions were changed: decreased inflation rate from 3.00 percent to 2.50 percent;decreased the
investrnent rate of rehun from 7.50 percent to 7.25 percent;decreased the cost-of-living adjustrnent from 2.50
percent to 2.25 percent;decreased salary growth graded ranges from an average of 4.25 percent to an average of
4.00 percent;and modified assumptions.
The long-term expected rate of return on pension plan investments was established by the TCRS Boazd of
Trustees in conjunction with the June 30,2020,actuarial experience study. A blend of future capital market
projections and historical market returns was used in a building-block method in which a best-estimate of expected
future real rates of return(expected returns,net of pension plan investment expense and inflation)is developed for
for each asset class. These best-estimates are combined to produce the long-term expected rate of return by
weighting the expected future real rates by the target asset allocation percentage and by adding expected inflation
of 2.25 percent. The best-estimates of geometric real rates of return and the TCRS investment policy target asset
allocation for each major asset class are summarized in the following table:
Long-Term Expected Target
Asset Class Real Rate of Return Allocation
U.S.equity 4.88% 31%
Developed market intemational equity 537% 14%
Emerging market intemational equity 6.09% 4%
Private equity and strategic lending 6.57% 20%
U.S.fixed income 1.20% 20%
Real estate 4.38% 10%
Short-term securities 0.00% 1%
100%
The long-term expected rate of return on pension plan investments was established by the TCRS Board of
Trustees as 6.75 percent based on a blending of the three factors described above.
-95 -
Note 16- RETIREMENT COMNIITMENTS-(Cont.)
TEACHERS RETIREMENT PLAN OF TCRS-(Cont.)
Discount rate. The discount rate used to measure the total pension liability was 6.75 percent. The projection
of cash flows used to determine the discount rate assumed that employee contributions will be made at the
current rate and that contributions from all LEAs will be made at the actuarially determined contribution rate
pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as
required to be paid by state statute. Based on those assumptions,the pension plan's fiduciary net position was
projected to be available to make projected future benefit payments of current active and inactive 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.
Sensitivity of the net pension liability(asset)to changes in the discount rate. The following presents Cleveland
City Schools'proportionate share of the net pension liability(asset)calculated using the discount rate of 6.75
percent,as well as what Cleveland City Schools'proportionate share of the net pension liability(asset)would be
if it were calculated using a discount rate that is 1-percentage-point lower(5.75 percent)or 1-percenta.ge-point
higher(7.75 percent)than the current rate:
Current
1%Decrease Discount Rate 1%Increase
(5.75%) (6.75%) (7.75%)
Cleveland City Schools'proportionate
share of the net pension liability(asset) $ 172,841 $ (502,776) $ (1,001,069)
Pension plan fiduciary net position. Detailed information about the pension plan's fiduciary net position is
available in a separately issued TCRS financial report.
Payable to the Pension Plan
At June 30,2022,no payments were payable to the plan.
Defined Contribution Component of the Teachers Retirement Plan:
The Schools also have a defined contriburion plan(administered by Great VJest Financial),under section
401(k)of the Intemal Revenue Code,covering all teachers of the System. Benefit terms,including contribution
requirements,for the Great West 401(k)pension plan are established and may be amended by the TCRS Board.
Under the plan,the System contributes 5%to the accounts of teachers hired after July 1,2014;these contributions
are not subject to any matchi.ng employee contriburion. These teachers are automatically enrolled in the plan with
a 2%employee deferral and an opt-out feature through which they may make no contributions. In addition,teachers
who participate in the Legacy Plan of TCRS have the option to make contributions to this defined contribution plan with
no system matching contributions. After-tax Roth 401k employee contributions are permitted by the Plan up to limits
imposed by the Intemal Revenue Code. Employee contributions to the Plan totaled$400,523,for the year ended
June 30,2022. The System recognized pension expense under the defined contribution plan of$320,932,for the yeaz
ended June 30,2022. Employees are immediately vested in their own contributions,employer contributions,and
earnings on those contributions. As a result,there are no forfeitures to be recognized in pension expense.
-96-
Note 16- RETIREMENT COMMITMENTS-(Cont.)
AGGREGATION OF ALL PENSION PLANS
Deferred Outflows of Resources and Deferred Inflows of Resources Related to all Pension Plans
The following is an aggregation of deferred outflows of resources and deferred inflows of resources
related to the City's various pension plans:
Deferred Deferred
Outflows of Tnflows of
Resources Resources
Differences between expected and actual experience $ 1,882,628 $ 3,428,927
Net difference between projected and actual earnings
on pension plan investinents 0 45,892,982
Change in assumptions 18,941,502 0
Changes in proportion of net pension liability 45,196 39,294
Contributions subsequent to the measurement date 11,486,812 0
Total $ 32,356,138 $ 49,361,203
Deferred outflows of resources related to 2022 contributions to pension plans subsequent to the
measurement date(June 30,2021 and October 1,2021)will be recognized as a reduction of the net
pension liability for the year ended June 30,2023.
Amounts reported as deferred ouiflows of resources and deferred inflows of resources from all pension
plan will be recognized in pension expense as follows:
Year ended June 30:
2023 $ (6,291,070)
2024 (7,026,626)
2025 (6,596,548)
2026 (10,480,093)
2027 1,860,722
Thereafter 41,729
In the table shown above,positive amounts will increase pension expense while negative amounts will
decrease pension expense.
The retirement plans resulted in the following net pension asset and net pension liability:
" Net Net
Pension Pension
Asset Liability
Teachers Legacy Pension Plan $ 27,522,167 $ 0
Teachers Retirement Plan of TCRS 502,776 0
TCRS Pension Plan 1,509,116 0
CSA Pension Plan 0 1,493,087
$ 29,534,059 $ 1,493,087
Pension expense related to all plans were as follows:
Teachers Legacy Pension Plan $ (543)
Teachers Retirement Plan of TCRS 97,867
Teachers Retirement Plan-Defined Contribution 320,320
TCRS Pension Plan 6,670,467
CSA Pension Plan 1,116,307
$ 8,204,418
-97-
Note 17- POSTEMPLOYMENT BENEFITS
CITY EMPLOYEES OTHER THAN CITY SCHOOLS AND CLEVELAND UTILITIES
PLAN DESCRIPTION
The City provides postretirement medical,dental and life insurance benefits to employees who retire from the City
with 30 years of service,public safety employees 25 years or age 55 with 10 years of service. Medical benefits are
provided using a point of service(POS)single-employer plan through Blue Cross. Dental benefits are provided
using a preferred provider organization(PPO)through Blue CrossBlue Shield.Lincoln National provides life
insurance benefits.
The following schedule applies to employees with over 10 years of service. If the retiree has family coverage
the City will pay half the difference beiween the cost of the family plan and the cost of the individual plan. No separate
report is issued for this plan.
CITY EMPLOYEES OTI�R THAN CITY SCHOOLS AND CLEVELAND UTILITIES-(Cont.)
%Paid by %Paid by
Years of Participant Years of Participant
Service At Non Police Service At Police&
Retirement Non Fire Retirement Fire
<15 100.00% <15 100.00%
15 50.00% 15 50.00%
16 46.67% 16 45.00%
17 4333% 17 40.00%
18 40.00% 18 35.00%
19 36.67% 19 30.00%
20 3333% 20 25.00%
21 30.00% 21 20.00%
22 26.67% 22 15.00%
23 23 33% 23 10.00%
24 20.00% 24 5.00%
25 16.67% 25+ 0.00%
26 1333%
27 10.00%
28 6.67%
29 333%
30+ 0.00%
Plan Membership. At July 1,2021,plan membership consisted of the following:
Inacrive employees currently receiving benefit payments 110
Inacrive employees entitled to but not yet receiving benefit payments 0
Active employees 320
430
Actuarial assumptions. The total opeb liability in the June 30,2021,actuarial valuation was determined using
the actuarial assumptions and other inputs,applied to all periods included in the measurement,unless otherwise specified:
Actuarial cost method Entry age actuarial cost method
Salary increases 4.00°/a
Payroll growth 2.50%
Inflation 2.50%
Discount rate 3.54%
Healthcare cost trend rates 6.50%decreasing to an ultimate rate of 4.50%
in 2026.
Mortality RPH-2014 headcount weighted mortality table
with projection scale MP-2021
-98-
Note 17- POSTEMPLOYMENT BENEFITS-(Cont.)
CITY EMPLOYEES OTHER THAN CITY SCHOOLS AND CLEVELAND UTILITIES-(Cont.)
Discount rate. The discount rate used to measure the OPEB liability was 3.54 percent. This rate reflects the
Bond Buyer's 20 Bond Index.
Changes as ofJune 30,2022. The discount rate used prior was 2.21%. The current discount rate used is 2.54%.
Changes in the Total OPEB Liability:
Total
OPEB
Liability
Balance at June 30,2021 $ 47,397,442
Changes for the year:
Service cost $ 1,815,569
Interest 864,964
Changes in Benefit Terms 0
Differences between expected and actual experience (8,769,070)
Changes in assumptions and other inputs (9,145,387)
Benefit payments (763,416)
Net changes $ (15,997,340)
Balance at June 30,2022 $ 31,400,102
Sensitivity of the Tota1 OPEB Liability to Changes in the Healthcare Cost Trend Rate. The following represents
the total opeb liability calculated using the stated health care cost trend assumption,as well as what the opeb liability
would be if it were calculated using a healthcare cost trend rate that is 1 percentage-point lower or 1 percentage-point
higher than the assumed trend rate:
1%Decrease Current 1%Increase
(5.00% (6.54% (7.50%
decreasing decreasing decreasing
to 4.00%) to 4.50) to 5.50%)
$ 25,709,261 $ 31,400,102 $ 39,003,148
Sensitivity of Total OPEB Liability to Changes in the Discount Rate: The following represents the total opeb liability
calculated using the stated discount rate,as well as what the total opeb liability would be if it were calculated using a
discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:
Current
1%Decrease Discount Rate 1%Increase
(2.54%) (3.54%) (4.54%)
$ 37,342,691 $ 31,400,102 $ 26,644,361
Funding. The City does not presently have a separate trust account to fund the Opeb liability.
Opeb expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Opeb:
Opeb expense. For the fiscal yeaz ended June 30,2022,the plan had opeb expense of$1,317,942.
-99-
Note 17- POSTEMPLOYMENT BENEFITS-(Cont.)
CITY EMPLOYEES OTHER THAN CITY SCHOOLS AND CLEVELAND UTILITIES-(Cont.)
Deferred outflows of resources and deferred inflows of resources. For the year ended June 30,2022,the plan
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 $ 0 $ 10,347,437
Change in assumptions 5,842,545 9,408,686
Total $ 5,842,545 $ 19,756,123
Amounts reported as deferred outIlows of resources and deferred inflows of resources related to opeb will be
recognized in expense as follows:
Year ended June 30:
2023 $ (1,362,591)
2024 (1,362,591)
2025 (1,362,591)
2026 (1,362,591)
2027 (1,362,591)
Thereafter (7,100,623)
Payable to the opeb Plan. At June 30,2022,there was no outstanding payable to the plan.
CLEVELAND UTILITIES-POSTEMPLOYMENT BENEFIT PLAN
PLAN DESCRIPTION
Cleveland Utilities provides postemployment medical,hospitalization,and dental benefits to employees who
retire from the Utility with 30 years of service,or age 55 with 15 years of service through a single-employer
plan. As of August 1,2006,employees with a hire date prior to July 1,2005,are non-contributory. For those
participants with a date of hire on or after July 1,2005,benefit participants pay according to the following schedule:
Years of
Service At Percentage of Premium
At Retirement Paid by Participant
<15 100.00%
• 15 50.00%
16 46.67%
17 4333%
18 40.00%
19 36.67%
20 3333%
21 30.00%
22 26.67%
23 23.33%
24 20.00%
25 16.67%
26 1333%
27 10.00%
28 6.67%
29 3.33%
30+ 0.00%
- 100-
Note 17- POSTEMPLOYMENT BENEFITS-(Cont.)
CLEVELAND UTILITIES-POSTEMPLOYMENT BENEFIT PLAN-(Cont.)
As of August 1,2006,participants with a date of hire prior to July 1,2005,Cleveland Utilities will pay 50%of the
spouse only premium. For those participants with a date of hire on or after July 1,2005,Cleveland Utilities will
pay 50%of the spouse only premium based on the schedule shown above for the retiree. There is no provision
to provide surviving spouse benefits.
Monthly premiums effective August 1,2021,aze as follows:
Medical Dental
Pre-65 Retiree $ 651.72 $ 24.64
Pre-65 Retiree and Spouse 1,389.51 54.77
Post-65 Retiree 301.00 24.64
Post-65 Retiree and Spouse 602.00 54.77
Plan description of the life insurance plan:
Plan types: Term life insurance
Eligibility: Age 60 with 30 years of service or
Age 55 with 15 yeazs of service
Benefit/cost sharing: Flat dollar$10,000 benefit for retiree and$2,000 benefit for spouse
Retiree cost sharing: Non-contributory
Plan Membership. At July 1,2021,plan membership consisted of the following:
Inactive plan members 114
Active plan members 205
319
Contributions. Although the Board has no contractual requirement to fund the plan,other than direct benefit payments,
their intent is to make budgeted annual contributions over the next ten years with a 20 year funding strategy. This
policy will be reviewed on an annual basis.
Irivestment policy. See Investment-fiduciary fund footnote that details the investrnents related to the OPEB trust.
Net opeb liability. Cleveland Utilities Net Opeb Liability was measured as of June 30,2022,and the total opeb
liability used to calculate net opeb liability was determined by an actuarial valuation as of July 1,2021.
Actuarial Assumptions. The total Opeb liability was determined by an actuarial valuation as of July 1,2021.
The total Opeb liability in the June 30,2021 actuarial valuation was determined using the following
assumptions,applied to all periods included in the measurement,unless otherwise specified:
Actuazial cost method Entry age normal
Amortization method Level percentage of payroll
Salary increases 4.00%
Payroll growth 2.50°/a
Inflation 2.50%
Investment rate of return 7.50%
Healthcare cost trend rates 9.00%initially,decreasing to an ultimate rate of 5.0%
Mortality RPH-2014 Fully Generational with Scale MP2021
Changes in assumptions. The discount rate changed from 7.30%as of June 30,2019,to 7.00%as of June 30,2020.
The mortality table changed from RP-2000 to RPH-2014.
Discount rate. The discount rate used to measure the total opeb liability was 7.00%. The Board has not adopted
a formal written funding policy. A contribution of$712,157,was made during the fiscal yeaz ended June 30,2022.
Future contributions at the Actuarial Determined Contribution(including direct benefit payments),are expected to
. generate a level funding that cash flow projections indicate will meet the funding requirements. This assumption will
be reviewed as of the next measurement date and modified as appropriate.
- 101 -
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
CLEVELAND UTILITIES-POSTEMPLOYMENT BENEFIT PLAN-(Cont.)
Changes in the Net Opeb Liability:
Unfunded
Actuarial Actuarial
Accrued Plan Accrued
Liability Assets Liability
(a) (b) (a)-(b)
Balance at June 30,2021 $ 16,165,757 $ 2,404,432 $ 13,761,325
Changes for the year:
Normal $ 243,180 $ 0 $ 243,180
Interest 1,023,028 0 1,023,028
Difference between expected and actual experience (1,711,731) 36,484 (1,748,215)
Contributions-employer 0 1,440,742 (1,440,742)
Net Investrnent income 0 168,310 (168,310)
Changes in assumptions 275,621 0 275,621
Benefit payments (728,585) (728,585) 0
Administrative expenses 0 0 0
Net changes $ (898,487) $ 916,951 $ (1,815,438)
Balance at June 30,2022 $ 15,267,270 $ 3,321,383 $ 11,945,887
Serrsitivity ofNet Opeb Liability to Changes in the Healthcare Cost Trend Rate. The following represents the net
opeb liability calculated using the stated health care cost trend assumption,as well as what the opeb liability would
be if it were calculated using a healthcare cost trend rate that is 1 percentage-point lower or 1 percentage-point higher
than the assumed trend rate:
1%Decrease Current 1%Increase
(6.50% (7.50% (8.50%
decreasing decreasing decreasing
to 3.50%) to 4.50%) to 5.50%)
$ 10,009,611 $ 11,945,887 $ 14,355,914
Sensitivity of Net Opeb Liability to Changes in the Discount Rate. The following represents the net opeb liability
calculated using the stated discount rate,as well as what the net opeb liability would be if it were calculated using a
discount rate that is 1 percentage-point lower or 1 percentage-point higher than the current rate:
Ciurent
1%Decrease Discount Rate 1%Increase
6.00% 7.00% 8.00%
$ 14,070,791 $ 11,945,887 $ 10,197,381
Opeb expense. For the year ended June 30,2022,Cleveland Utilities recognized opeb expense of$657,666.
Deferred outflows of resources and deferred inflows of resources. For the year ended June 30,2022,Cleveland
Utilities reported deferred outflows of resources and defe�rred inflows of resources related to opeb from the following
sources:
Deferred Deferred
QutIlows of Inflows of
Resources Resources
Differences between expected and actual experience $ 0 $ . 2,826,860
Net difference between projected and actual earnings
on opeb plan investments 17,669 29,993
Change in assumptions 854,807 239,018
Total $ 872,476 $ 3,095,871
- 102-
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
CLEVELAND UTILITIES-POSTEMl'LOYMENT BENEFIT PLAN-(Cont.)
Amounts reported as deferred outflows of resources and deferred inflows of resources related to opeb will be
recognized in expense as follows:
Year ended June 30:
2023 $ (385,348)
2024 (335,031)
2025 (359,309)
2026 (361,832)
2027 (392,415)
Thereafter (3 89,460)
Payable to the opeb plan. At June 30,2021,there was no outstanding payable to the plan.
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(TGOP)
Plan description. Employees of the City of Cleveland School System,who were hired prior to July 1,2015,aze
provided with post-65 retiree health insurance benefits through the closed Teacher Group Opeb plan(TGOP)
administered by the Tennessee Deparlment of Finance and Administration. This plan is considered to be a
multiple-employer defined benefit plan that is used to provide postemployment benefits other than pension(OPEB).
However,for accounting purposes,this plan will be treated as a single-employer plan. All eligible post-65 retired
teachers,support sta.ff and disability participants of local education agencies who choose coverage,participate in the
TGOP. This plan is closed to the employees of all participating employers that were hired on or after July 1,2015.
Benefits provided. The City offers the TGOP to provide health insurance coverage to eligible pre-65 retired
teachers,support staff and disabled participants of local education agencies. Insurance coverage is the only
postemployment benefit provided to retirees. An insurance committee created in accordance with TCA 8-27-301
establishes and amends the benefiit terms of the TGOP. All members have the option of choosing between the
premier preferred provider organization(PPO),standard PPO,limited PPO or the wellness health savings
consumer-driven health plan(CDHP)for healthcare benefits. Retired plan members,of the TGOP,receives the
same plan benefits as active employees, at a blended rate that considers the cost of all participants. This creates an
implicit subsidy for retirees. Participating employers determine their own policy related to direct subsidies provided
for the retiree premiums. The state,as a governmental nonemployer contributing entity,provides a direct subsidy for
eligible retirees premiums,based on years of service. Therefore,retirees with 30 or more years of service will
receive 45%;20 but less than 30 years,35%;and less than 20 years,20%of the scheduled premium.No subsidy
is provided for enrollees of the healthsavings CDHP. The TGOP is funded as a pay-as-you-go basis and there aze
no assets accumulating in a irust that meet the criteria of paragraph 4 of GASB Statement No.75.
Employees covered by benefit terms. At July 1,2021,the following employees of the City of Cleveland School
System were covered by the benefit terms of the TGOP:
Inactive employees currently receiving benefit payments 23
Inactive employees entitled to but not yet receiving benefit payments 0
Active employees 444
467
An insurance committee,created in accordance with the TCA 8-27-301,establishes the required payments to the TGOP
by member employers and employees through the blended premiums established for active and retired employees.
Claims liabilities of the plan are periodically computed using actuarial and statistical techniques to establish premiums
rates. Administrative costs are allocated to plan participants. Employers contribute towards employee costs based on
their own developed policies. During the current reporting period,the City of Cleveland School System paid$251,027
to the TGOP for OPEB benefits as they came due.
- 103 -
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(TGOP)-(Cont.)
Actuarial assumptions. The collective total opeb liability in the June 30,2021,actuarial valuation was deteimined
using the following actuarial assumptions and other inputs,applied to all periods included in the measurement,unless
otherwise specified:
Inflation 2.25%
Salary increases Graded salary ranges from 3.44 to 8.72 percent based on
age,including inflation,averaging 4 percent.
Healthcare cost trend rates 736%for pre-65 in 2021,decreasing annually
over a 7 yeaz period to an ultimate rate of 4.50%.
7.32%for post-65 in 2021,decreasing annually
over an 8 year period to an ultimate rate of 4.50%.
Retiree's share of benefit-related costs Members are required to make monthly contributions
in order to maintain their coverage. For the purpose of
this valuation a weighted average has been used with
weights derived from the current distribution of
members among plans offered.
Unless noted otherwise,the actuarial demographic assumptions used in the June 30,2021,valuations were the same a
as those employed in the July 1,2020 Pension Actuarial Valuation of the Tennessee Consolidated Retirement
System(TCRS). These assumptions were developed by the TCRS based on results of an actuarial experience study
for the period July 1,2016 to June 30,2020. The demographic assumptions were adjusted to more closely reflect actual
and expected future experience. Mortality tables aze used to measure the probabilities of participants dying before
and after retirement. The pre-retirement mortality rates employed in this valuation are taken from the PUB-2010
Headcount-weighted Employee mortality table for Teachers Employees projected generationally with MP-2020 from
2010. Post-retirement tables are Headcount-weighted Teacher Below Median Annuitant and adjusted with a 19%load
for males and an 18%load from females,projected generationally from 2010 with MP-2020. Mortality rates for impaired
lives are the same as those used by TCRS and are taken from a gender distinct table published in the IRS Ruling 96-7
for disabled lives with a 10%load,projected generationally from 2018 with MP-2020.
Discount rate. The discount rate used to measwe the total Opeb liability was 2.16 percent. This rate reflects the
interest rate derived from yields on 20-yeaz,tax-exempt general obligation municipal bonds,prevailing on the
measurement date,with an average rati.ng of AA/Aa as shown on the Fidelity 20-Year Municipal GO AA index.
Changes in the Collective Total Opeb Liability
Total
Opeb
Liability
(a)
Balances at June 30,2021 $ 11,345,570
Changes for the year:
Service cost $ 747,110
Interest 263,056
Changes of benefit terms 0
Differences between expected and actual experience 244,599
Changes in assumptions and other inputs 105,503
Benefit payments (3 81,466)
Net changes $ 978,802
Balances at June 30,2022 $ 12,324,372
- 104-
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(TGOP)-(Cont.)
Nonemployer contributing entities proportionate share of the collective
total OPEB liability $ 3,159,007
Employer's proportionate share of the collective total opeb liability $ 9,165,365
Employer's proportionate share of the collective total opeb liabiliTy 74.37%
The Cleveland City School System has a special funding situation related to benefits paid by the State of Tennessee
for its eligible retired employees participating in the TGOP. The School's proportionate share of the collective
total opeb liability was based on a projection of the employers long-term share of benefit payments to the opeb
plan relative to the projected share of benefit payments of all participating employers and nonemployer contributing
entities,actuarially determined. The proportion changed-1.14%from the prior measurement date. The Cleveland
City School System recognized$269,324,in revenue for subsidies provided by nonemployer contributing entities for
benefits paid by the TGOP for School retirees.
Funding. There are no assets accumulating in a trust that meets the criteria in paragraph 4 of GASB Statement No.75,
related to this opeb plan.
Changes in assumptions. The discount rate was changed from 2.21%as of the beginning of the measurement period
to 2.16%as of June 30,2021. This change in assumption decreased the total opeb liability.
Sensitivity ofproportionate share of the collective total opeb liability to changes in the discount rate. The
following presents the proportionate share of the collective total opeb liability related to the TGOP,as well as
what the proportionate share of the collective total opeb liability would be if it were calculated using a discount
rate that is 1 percentage-point lower or 1 percentage point higher than the current discount rate.
Current
1%Decrease Discount Rate 1%Increase
1.16% 2.16% 3.16%
Proportionate share of collective opeb liability $ ' 9,885,538 $ 9,165,365 $ 8,474,728
Sensitivity to proportionate share of the collective total opeb liability to changes in the healthcare cost trend rate.
The following presents the proportionate share of collective total opeb liability related to the TGOP,as well as
what the proportionate share of the collective total opeb liability would be if it were calculated using a healthcare
cost trend rate that is 1 percentage-point lower or 1 percentage-point higher than the current healthcare cost trend rate.
1%Decrease Current 1%Increase
(6.36%/6.32% (7.36%/7.32% (8.36%/832%
decreasing decreasing decreasing
to 3.50%) to 4.50°/a) to 5.50%)
Proportionate share of collective total opeb liability $ 8,019,885 $ 9,165,365 $ 10,522,372
Opeb expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Opeb:
Opeb expense. For the fiscal year ended June 30,2022,the Cleveland City School System recognized opeb
expense of$838,486.
- 105-
Note 17- POSTENII'LOYMENT BENEFITS(Cont.)
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(TGOP)-(Cont.)
Deferred outflows of resources and deferred inflows of resources. For the year ended June 30,2022,Cleveland
Ciiy Schools 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
Difference between actual and expected experience $ 824,904 $ 2,065,414
Changes in assumptions 1,059,583 618,745
Changes in proportion and differences between amounts
paid as benefits came due and proportionate share certain
amounts paid by the employer and nonemployex
contributors as the benefits came due 0 409,949
Employer payments subsequent to the measurement date 251,027 0
Total $ 2,135,514 $ 3,094,108
Amounts reported as deferred outflows of resources and deferred inflows of resources related to opeb will be
recognized in expense as follows:
Year ended June 30:
2023 $ (182,076)
2024 (182,076)
2025 (182,076)
2026 (182,076)
2027 (182,076)
Thereafter (299,241)
In the table above,positive amounts will increase opeb expense while negative amounts will decrease opeb expense.
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(TNP)
Plan description. Employees of the City of Cleveland School System,who were hired prior to Ju1y 1,2015,are
provided with post-65 retiree health insurance benefits through the closed Tennessee Plan(TNP)administered by
the Tennessee Department of Finance and Administration. This plan is considered to be a multiple-employer defined
benefit plan that is used to provide postemployment benefits other than pension(opeb). However,for accounting
purposes,this plan will be treated as a single-employer plan. All eligible post-65 retired teachers and disability
participants of local education agencies,who choose coverage,participate in the TNP. The TNP also includes eligible
retirees of the state,certain component units of the state,and certain local govemmental entities. This plan is closed to
the employees of all participating employers that were hired on or after July 1,2015.
Benefits provided. The City offers the TNP to help fill most of the coverage gaps created by Medicare for eligible
post-65 retired teachers and disabled participants of local education agencies. Insurance coverage is the only
postemployment benefit provided to retirees. The TNP plan does not include pharmacy. In accordance with
TCA 8-27-209,benefits of the TNP are established and amended by cooperation of insurance committees created by
TCA 8-27-201, 8-27-301. Retirees and disabled employees of the state,component units,local education agencies,
and certain local governments who have reached the age of 65,are Medicare eligible and also receives a benefit
from the Tennessee Consolidated Retirement System may participate in this plan. All plan members receive the
same plan benefits at the same premium rates. Participating employers determine their own policy related to subsidizing
the retiree premiums. The state,as a governmental nonemployer contributing entity contributes to the premiums of
eligible retirees of local education agencies based on years of service. Therefore,retirees with 30 years of service
receive$50 per month;20 but less than 30 years,$37.50;and 15 but less than 20 years,$25. The TNP is funded on a
pay-as-you-go basis and there are no assets accumulating in a trvst that meet the criteria of paragraph 4 of GASB
Statement No.75.
- 106-
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(T'NP)-(Cont.)
Employees covered by benefit terms. At July 30,2021,the following employees of the City of Cleveland School
System were covered by the benefit terms of the TNP:
Inactive employees currently receiving benefit payments 119
Inactive employees entitled to but not yet receiving benefit payments 39
Active employees 365
523
In accordance with TCA 8-27-209,the state insurance committees established by TCAs 8-27-201, 8-27-301 and
8-327-701 determine the required payments to the plan by member employers and employees. Claims liabilities
of the plan are periodically computed using actuarial and statistical techniques to establish premium rates.
Administrative costs are allocated to plan participants. Employers contribute toward employee costs based on
their own developed policies. During the current period,the City of Cleveland School System did not make
any payments to the TNP for opeb benefits as they came due.
Tota1 Opeb Liability
Actuarial assumptions. The collective 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 2.25%
Salary increases Graded salary ranges from 3.44 to 8.72 percent
based on age,including inflation,averaging 4 percent.
Healthcare cost trend rates The premium subsidies provided to retirees in the
Tennessee Plan are assumed to remain unchanged for
the entire projection,therefore trend rates are not
applicable.
Unless noted otherwise,the actuarial demographic assumptions used in the June 30,2021,valuations were the
same as those employed in the July 1,2020,Pension Actuarial Valuation of the Tennessee Consolidated Retirement
System(TCRS). These assumptions were developed by the TCRS based on results of an actuarial experience
study for the period July 1,2016,to June 30,2020. The demographic assumptions were adjusted to more closely
reflect actual and expected future experience. Mortality tables are used to measure the probabilities of participants
dying before and after retirement. The mortality rates employed in this valuarion are taken from the headcount-weighted
below median teachers PUB-2010 Healthy Participant Mortality Table for Annuitants for non-disabled post-retirement
mortality,with mortality improvement projected to all future years using Scale MP-2020. Post-retirement tables are
adjusted with a 19%load for males and a 18°/a load for females. Mortality rates for impaired lives are the same as those
used by TCRS and are taken from a gender distinct table published in the IRS Ruling 96-7 for disabled lives with a
10%load with mortality improvement projected to all future years using Scale MP-2020.
Discount rate. The discount rate used to measure the total opeb liability was 2.16 percent. This rate reflects the
interest rate derived from yields on 20-yeaz,tax-exempt general obligation municipal bonds,prevailing on the
measurement date,with an average rating of A.A/Aa as shown on the Fidelity 20-Year Municipal GO AA index.
- 107-
B
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
CLEVELAND CITY SCHOOLS SYSTEM-Closed Tennessee Plan(TNP)-(Cont.)
Changes in the Collective Total Opeb Liability
Total
Opeb
Liability
(a)
Balances at June 30,2020 $ 1,677,133
Changes for the year:
Service cost $ 38,723
Interest 37,220
Changes of benefit terms 0
Differences between expected and actual experience (12,039)
Changes in assumptions (239,064)
Benefit payments (63,767)
Net changes $ (238,927)
Balances at June 30,2021 $ 1,438,206
Nonemployer contributing entities proportionate share of the collective
total Opeb liability $ 1,438,206
Employer's proportionate share of the collective total opeb liability $ 0
Employer's proportionate share of the collective total opeb liability 0.00%
The Cleveland City School System has a special funding situation related to benefits paid by the State of Tennessee
for its eligible retired employees participating in the TNP. The School's proportionate share of the collective total
OPEB liability was based on a projection of the employers long-term share of benefit payments to the OPEB plan
relative to the projected share of benefit payments of all participating employers and nonemployer contributing
entities,actuarially determi.ned. The proportion of 0%did not change from the prior measurement date. The
Cleveland City Schools recognized$61,782,in revenue for support provided by nonemployer contributi.ng entities
for benefits paid to the TNP for retired employees.
Changes in assumptions. The discount rate was changed from 2.21%as of the beginning of the measurement
period to 2.16%as of June 30,2021. This change in assumption decreased the total opeb liability.
Opeb Expense and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Opeb:
Opeb Expense. For the fiscal year ended June 30,2022,the Cleveland City School System recognized opeb
expense of$61,782.
AGGREGATION OF ALL POSTEMPLOYN�NT PLANS
Deferred Outflows of Resources and Deferred Inflows of Resources Related to all opeb plans:
The following is an aggregation of deferred outflows of resources and deferred inflows of resources
related to the City's various opeb plans:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and acival experience $ 824,904 $ 15,239,711
Net difference between projected and actual earnings
on opeb plan invesbnents 17,669 29,993
Change in assumptions 7,756,935 10,266,449
Changes in proportion of net opeb liability 0 409,949
Contributions subsequent to the measurement date 251,027 0
Total $ 8,850,535 $ 25,946,102
- 108-
Note 17- POSTEMPLOYMENT BENEFITS(Cont.)
AGGREGATION OF ALL POSTEMPLOYMENT PLANS-(Cont.)
Amounts reported as deferred outflows of resources and deferred inflows of resources from all opeb
plans will be recognized as expense as follows:
Yeaz ended June 30:
2023 $ (1,930,015)
2024 (1,879,698)
2025 (1,903,976)
2026 (1,906,499)
2027 (1,937,082)
Thereafter (7,789,324)
In the table shown above,positive amounts will increase pension expense while negative amounts will
decrease opeb expense.
The opeb plans resulted in the following net opeb liability:
Net
Opeb
Liability
City Plan $ 31,400,102
Cleveland Utilities Plan 11,945,887
City Schools TGOP Plan 9,165,365
$ 52,511,354
Opeb expense related to all plans were as follows:
City Plan $ 1,317,942
Cleveland Utilities Plan 657,666
Ciiy Schools TGOP Plan 838,486
City Schools TNP Plan 61,782
$ 2,875,876
In addition the City Schools TGOP plan and TNP plan recognized revenue in the amoun�of$101,549 and
$56,725 respectively.
Note 18- RELATED PARTY ACTIVITY
For the years ended June 30,2022,Cleveland Utiliries made purchases of$319,892 from an auto dealership
that was operated by a board member. The purchases involved several trucks that were appropriately bid.
Note 19- ACCOiTNTING CHANGE
GASB Statement No. 87,Leases,became effective for fiscal year ending June 30,2022. Leases should be
recognized and measured using the fact and circumstances that exist at the beginning of the period of
implementation. GASB Statement No. 87 establishes a single approach to accounting for and reporting leases
by state and local governments. Under this statement,a government entity that is a leasee must recognize
(1)a lease liability,(2)an intangible asset representing the leasee's right to use the leased asset,(3)report the
amortization expense for using the lease asset over the shorter of the term of the lease or the useful life of the
underlying asset,(4)interest expense on the lease liability and(5)note disclosure about the lease.
The following is the effect of the accounting change:
Governmental Business-type
Intangible asset $ 1,584,455 $ 64,357
Accumulated amortization 0 (14,310)
Leases payable (1,584,455) (50,572)
Net effect adjusted in current year activiiy $ 0 $ (525)
- 109-
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REQUIRED SUPPLEMENTARY INFORMATION
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN CLEVELAND CITY'S NET PENSION LIABILITY AND RELATED
RATIOS BASED ON PARTICIPATION IN THE PUBLIC EMPLOYEE PENSION PLAN OF TCRS
LAST FISCAL YEAR ENDING JiJNE 30,
2014 2015 2016
Total Pension Liability
Service cost $ 2,222,760 $ 2,274,025 $ 2,363,997
Interest 8,465,079 8,925,860 9,467,115
Changes in benefit terms 0 0 0
Differences between actual
and expected experience (254,944) 717,782 1,198,307
Change of assumptions 0 0 0
Benefit payments (4,198,654) (4,482,162) (5,099,666)
Net change in total pension liability $ 6,234,241 $ 7,435,505 $ 7,929,753
Total pension liability-beginning 112,744,286 118,978,527 126,414,032
Total pension liability-ending(a) $ 118,978,527 $ 126,414,032 $ 134,343,785
Plan Fiduciary Net Position
Conti-ibutions-employer $ 5,089,188 $ 5,321,904 $ 5,426,173
Contributions-employee 165 186 1,998
Net investment income 15,038,653 3,287,610 2,936,077
Benefitpayable (4,198,654) (4,482,162) (5,099,666)
Adminish�ative expense (29,562) (34,427) (51,102)
Net change in plan fiduciary net position $ 15,899,790 $ 4,093,111 $ 3,213,480
Plan fiduciary net position-beginn.ing 90,319,171 106,218,961 110,312,072
Plan fiduciary net position-ending(b) $ 106,218,961 $ 110,312,072 $ 113,525,552
Net Pension Liability(Asset)-ending(a)-(b) $ 12,759,566 $ 16,101,960 $ 20,818,233
Plan fiduciary net position as a percentage
of total pension liability 89.28% 87.26% 84.50%
Covered payroll $ 28,771,684 $ 30,014,667 $ 30,709,795
Net pension liability as a percentage
of covered payroll 44.35% 53.65% . 67.79%
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
- 110-
2017 2018 2019 2020 2021
$ 2,442,734 $ 2,829,546 $ 2,842,378 $ 3,109,494 $ 3,067,349
10,043,766 10,660,549 11,237,054 11,863,884 12,455,312
0 0 0 0 0
2,524,249 768,592 1,089,026 399,575 (973,078)
3,636,3 85 0 0 0 12,101,192
(5,739,270) (6,078,280) (6,561,174) (7,018,107) (7,328,245)
$ 12,907,864 $ 8,180,407 $ 8,607,284 $ 8,354,846 $ 19,322,530
134,343,785 147,251,649 155,432,056 164,039,340 172,394,186
$ 147,251,649 $ 155,432,056 $ 164,039,340 $ 172,394,186 $ 191,716,716
, $ 5,744,012 $ 6,173,935 $ 6,489,131 $ 6,777,880 $ 7,074,310
0 0 0 0 0
12,875,142 10,488,825 10,185,877 7,279,540 39,657,269
(5,739,270) (6,078,280) (6,561,174) (7,018,107) (7,328,245)
(57,272) (67,134) (64,454) (65,005) (66,700)
$ 12,822,612 $ 10,517,346 $ 10,049,380 $ 6,974,308 $ 39,336,634
113,525,552 126,348,164 136,865,510 146,914,890 153,889,198
$ 126,348,164 $ 136,865,510 $ 146,914,890 $ 153,889,198 $ 193,225,832
$ 20,903,485 $ 18,566,546 $ 17,124,450 $ 18,504,988 $ (1,509,116)
85.80% 88.05% 89.56% 89.27% 100.79%
$ 32,410,047 $ 34,163,265 $ 35,887,908 $ 38,505,535 $ 38,827,492
64.50% 54.35% 47.72% 48.06% -3.89%
- 111 -
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CLEVELAND CITY'S CONTRIBUTIONS
BASED ON PARTICIPATION IN TI�PUBLIC EMPLOYEE PENSION PLAN OF TCRS
LAST FISCAL YEAR ENDING JUNE 30,
2014 2015 2016
Actuarially determined contribution $ 5,089,188 $ 5,207,352 $ 5,424,330
Contributions in relarion to the
actuarially determined contribution 5,089,188 5,207,352 5,424,330
Contribution deficiency(excess) $ 0 $ 0 $ 0
Covered payroll $ 28,771,684 $ 29,910,084 $ 30,620,707
Contribution as a percentage
of covered payroll 17.69% 17.41% 17.71%
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years unti110 years of information is available.
Notes to Schedule
Yaluation date: Actuarially determined contribution rates for 2022 were calculated based on the June 30,2020
actuarial valuation.
Methods and assumptions used to determine contribution rates:
Actuarial cost method Entry age Normal
Amortization method Level dollar,closed(not to exceed 20 years)
Remaining amortization period Varies by Year
Asset valuation 10-year smoothed within a 20 percent corridor to market value
Inflation 2.5 percent
Salary increases Graded salary ranges from 8.72 to 3.44 percent based on age,
including inflation, averaging 4.00 percent
Investment rate of rehun 6.75 percent,net of investment expense,including inflation
Retirement age Pattem of retirement determined by experience study
Mortality Customized table based on actual experience including an
adjustment for some anticipated improvement
Cost-of-living-adjustinents 2.125 percent
Changes of assumptions. In 2021,the following assumptions were changed: decreased inflation rate from 2.50 percent to
2.25 percent;decreased the investment rate of retum from 7.25 percent to 6.75 percent;decreased the cost-of-living adjustment
from 2.25 percent to 2.125 percent;and modified mortality assumptions. In 2017,the following assumptions were changed:
decreased inflation rate from 3.00 percent to 2.50 percent;decreased the investment rate of return from 7.50 percent to 7.25
percent;decrease the cost-of-living adjustrnent from 2.50 percent to 2.25 percent;decreased salary growth graded ranges from
- 112-
2017 2018 2019 2020 2021 2022
$ 5,744,012 $ 6,173,128 $ 6,489,131 $ 6,777,880 $ 7,054,418 $ 7,557,627
5,744,012 6,173,128 6,489,131 6,777,880 7,054,418 7,557,627
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
$ 32,410,047 $ 34,163,265 $ 35,887,908 $ 37,192,410 $ 38,505,535 $ 40,713,002
17.72% 18.07% 18.08% 18.22% 18.32% 18.56%
- 113 -
CITY OF CLEVELAND,TENNESSEE
REQUIlZED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN CLEVELAND CITY'S NET PENSION LIABILITY AND RELATED
R.ATIOS BASED ON PARTICIPATION IN THE PUBLIC EMPLOYEE PENSION PLAN OF CSA
LAST FISCAL YEAR ENDING OCTOBER 1,
2014 2015 2016
Total Pension Liability
Service cost $ 92,532 $ 95,366 $ 98,869
Interest 2,165,875 2,159,798 2,210,999
Changes in benefit terms 0 0 0
Differences beiween actual
and expected experience (355,441) 567,883 797,655
Change of assumptions 0 0 27,058
Benefitpayments (1,940,294) (2,044,920) (2,145,295)
Net change in total pension liability $ (37,328) $ 778,127 $ 989,286
Total pension liability-bea nning 31,818,685 31,781,357 32,559,484
Total pension liability-ending(a) $ 31,781,357 $ 32,559,484 $ 33,548,770
Plan Fiduciary Net Position
Contributions-employer $ 1,507,800 $ 1,698,192 $ 1,703,144
Contributions-employee 0 0 0
Net investment income 1,565,864 192,571 1,908,220
Benefitpayable (1,940,294) (2,044,920) (2,145,295)
Administrative expense (1,829) (99) 0
Net change in plan fiduciary net position $ 1,131,541 $ (154,256) $ 1,466,069
Plan fiduciary net position-beginning 21,813,834 22,945,375 22,791,119
Plan fiduciary net position-ending(b) $ 22,945,375 $ 22,791,119 $ 24,257,188
Net Pension Liability-ending(a)-(b) $ 8,835,982 $ 9,768,365 $ 9,291,582
Plan fiduciary net position as a percentage
of total pension liability 7220% 70.00% 72.30%
Covered payroll $ 2,004,844 $ 2,104,682 $ 1,940,346
Net pension liability as a percentage
of covered payroll 440.73% 464.13% 478.86%
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
- 114-
2017 2018 2019 2020 2021
$ 88,263 $ 68,316 $ 63,605 $ 56,028 $ 66,376
2,270,713 2,304,139 2,351,768 2,348,086 2,416,904
0 0 0 0 0
460,253 645,393 75,248 224,024 (288,243)
48,168 64,119 51,789 1,061,833 57,079
(2,396,553) (2,343,308) (2,450,385) (2,724,486) (2,709,933)
$ 470,844 $ 738,659 $ 92,025 $ 965,485 $ (457,817)
33,548,770 34,019,614 34,758,273 34,850,298 35,815,783
$ 34,019,614 $ 34,758,273 $ 34,850,298 $ 35,815,783 $ 35,357,966
$ 1,764,776 $ 1,875,916 $ 1,840,214 $ 1,930,107 $ 2,002,365
0 26,816 0 0 0
2,454,931 1,681,631 1,103,368 2,246,887 5,315,190
(2,396,553) (2,343,308) (2,450,385) (2,724,486) (2,709,933)
0 0 0 (7,143) (2,702)
$ 1,823,154 $ 1,241,055 $ 493,197 $ 1,445,365 $ 4,604,920
24,257,188 26,080,342 27,321,397 27,814,594 29,259,959
$ 26,080,342 $ 27,321,397 $ 27,814,594 $ 29,259,959 $ 33,864,879
$ 7,939,272 $ 7,436,876 $ 7,035,704 $ 6,555,824 $ 1,493,087
76.66% 76.66% 79.81% 81.70% 95.78%
$ 1,699,467 $ 1,548,112 $ 1,328,225 $ 1,069,072 $ 1,013,451
467.16% 480.38% 529.71% 613.23% 147.33%
- 115-
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CLEVELAND CITY'S CONTRIBUTIONS
BASED ON PARTICIPATION IN TF�PUBLIC EMPLOYEE PENSION PLAN OF CSA
LAST FISCAL YEAR ENDING JUNE 30,
2015 2016 2017
Actuarially determined contribution $ 1,558,833 $ 1,567,533 $ 1,663,122
Contributions in relation to the
actuarially determined conhibution 1,698,192 1,699,430 1,725,980
Contribution deficiency(excess) $ (139,359) $ (131,897) $ (62,858)
Covered payroll $ 2,093,809 $ 1,981,430 $ 1,759,687
Contribution as a percentage covered payroll 81.11% 85.77% 98.08%
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
Methods and assumptions used to determine contribution rates: ,
Measurement date October 1,2021
Discount rate 7.00%
Cost method Individual Enhy Age Normal
Mortality Pub 2010 General Amount-weighted table fully-generational with projection scale.
Incident of disability 1985 CIDA Table-Class 2
Turnover For all employees: Sazason T-3 table.
Salary scale 3.5%per year
Cost of living increases N/A
Date of participation freeze 10/14/1993
Overtime It is assumed that overtime will continue to be earned at 100%of the level
of the most recent 3-year average.
Assumed retirement age 25%at ages 57-61;50%at ages 62-64; 100%at age 65.
Valuation of Assets:
GASB 68 Market Value
Funding Actuarial Value(5-year smoothing)
Note-The discount rate used to measure the total pension liability was 7.0%. The projection of cash flows used to
determine the discount rate assumes that employee contributions will be made at the current contribution rate and the
employer will continue to contribute the actuarially determined contribution in accordance with the Plan's current
funding policy on an annual basis. Based on that assumption,the pension plan's fiduciary net posirion is projected to
be available to make all projected future benefit payments of current active and inactive employees. Therefore,the
long-tetm expected rate of return on pension plan investrnents was applied to all periods of projected benefits payments
to determine the total pension liability.
- 116-
2018 2019 2020 2021 2022
$ 1,712,348 $ 1,773,627 $ 1,824,417 $ 1,946,847 $ 1,955,441
1,870,153 1,854,331 1,901,746 1,961,589 2,100,333
$ (157,805) $ (80,704) $ (77,329) $ (14,742) $ (144,892)
$ 1,585,955 $ 1,435,507 $ 1,151,339 $ 1,151,339 $ 942,509
117.92% 129.18% 165.18% 170.37% 222.84%
- 117-
CITY OF CLEVELAND,TENNESSEE
• REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CLEVELAND CITY SCHOOLS'
PROPORTIONATE SHARE OF THE NET PENSION ASSET
TEACHER LEGACY PENSION PLAN OF TCRS
FISCAL YEAR ENDING JUNE 30,*
2015 2016 2017
Cleveland City Schools'proportion
ofthe net pension liability(asset) 0.536236% 0.537318% 0.569952%
Cleveland City Schools'proportionate
share of the net pension liability(asset) $ (87,136) $ 220,104 $ 3,561,884
Cleveland City Schools'covered payroll $ 21,047,222 $ 20,114,516 $ 20,574,118
Cleveland City Schools'proportionate shaze
of the net pension asset as a percentage
of its covered payroll -0.41% 1.09% 17.31%
Plan fiduciary net position as a percentage
of the total pension liability 100.08% 99.81% 97.14%
*The amounts presented were determined as of June 30 of the prior fiscal year.
This is a 10-year schedule. However,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
SCHEDULE OF CLEVELAND CITY SCHOOLS'CONTRIBUTIONS
TEACHER LEGACY PENSION PLAN OF TCRS
FISCAL YEAR ENDING JUNE 30
2014 2015 2016
Actuarially Determined Contribution(ADC) $ 1,868,991 $ 1,816,962 $ 1,859,723
Contributions in relation to the actuarially
determined contribution 1,868,991 1,816,962 1,859,723
Contribution deficiency(excess) $ 0 $ 0 $ 0
Cleveland City Schools'covered payroll $ 21,047,222 $ 20,114,516 $ 20,574,118
Contribution as a percentage covered payroll 8.88% 9.03% 9.04%
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
- 118-
2018 2019 2020 2021 2022
0.590148% 0.613389% 0.642330% 0.643551% 0.638086%
$ (193,086) $ (2,158,465) $ (6,604,306) $ (4,907,554) $ (27,522,167)
$ 20,803,880 $ 21,478,886 $ 21,538,232 $ 21,419,053 $ 20,943,944
-0.93% -10.05% -30.66% -22.91% -131.41%
100.14% 101.49% 104.28% 103.09% 116.13%
2017 2018 2019 2020 2021 2022
$ 1,885,875 $ 1,954,073 $ 2,252,900 $ 2,274,144 $ 2,150,852 $ 2,192,564
1,885,875 1,954,073 2,252,900 2,274,144 2,150,852 2,192,564
$ 0 $ 0 $ 0 $ 0 $ 0 $ 0
$ 20,803,880 $ 21,478,886 $ 21,538,232 $ 21,193,791 $ 20,943,944 $ 21,288,922
9.07% 9.10% 10.46% 10.63% 10.27% 10.30%
- 119=
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CLEVELAND CITY SCHOOLS'PROPORTIONATE SHARE OF THE
NET PENSION LIABILITY(ASSET)
TEACHER RETIREMENT PLAN OF TCRS
FISCAL YEAR ENDED JCTNE 30,*
2016 2017 2018
Cleveland City Schools'proportion
of the net pension liability(asset) 0.416856% 0.378257% 0393963%
Cleveland City Schools'proportionate
share of the net pension liability(asset) $ (16,770) $ (39,378) $ (103,940)
Cleveland City Schools'covered payroll $ 866,121 $ 1,664,349 $ 2,643,292
Cleveland City Schools'proportionate share of
of the net pension liability(asset)as a
percentage of its covered payroll -1.94% -2.37% -3.93%
Plan fiduciary net position as a percentage
of the total pension liability 127.46% 121.88% 126.81%
*The amounts presented were determined as of June 30 of the prior fiscal year.
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to tYus schedule in future fiscal years until 10 years of information is available.
SCHEDULE OF CLEVELAND CITY SCHOOLS'CONTRiBUTIONS
TEACHER RETIREMENT PLAN OF TCRS
FISCAL YEAR ENDING TUNE 30
2015 2016 2017
Actuarially Determined Contribution(ADC) $ 21,653 $ 41,662 $ 105,732
Contributions in relation to the actuarially
determined contribution 34,645 66,574 105,732
Conhibution deficiency(excess) $ (12,992) $ (24,912) $ 0
Cleveland City Schools'covered payroll $ 866,121 $ 1,664,349 $ 2,643,292
Contribution as a percentage covered payroll 4.00% 4.00% 4.00%
Note-This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of ittformation is available.
Changes of assumptions. In 2021,the following assumptions were changed;decreased inflation rate from 2.50 percent to
2.25 percent;decreased the investment rate of return from 7.25 percent to 6.75 percent;decreased the cost-of-living adjustment
from 2.25 percent to 2.125 percent;and modified mortality assumptions. In 2017,the following assumptions were changed:
decreased inflation rate from 3.00 percent to 2.50 percent;decreased the investment rate of return from 7.50 percent to 7.25
percent;decreased cost-of-living adjustment from 2.50 percent to 2.25 percent;decreased salary graded ranges from an average
of 4.25 percent to an average of 4.00 percent;and modified mortality assumptions.
Effective July 1,2018,contributions in excess of the ADC are placed in a Stabilization Reserve Trust(SRT)account
separate from the TCRS Pension Trust. These amounts represent the balance of contributions made up to 4%total for both combined
- 120-
2019 2020 2021 2022
0.417866% 0.413270% 0.430495% 0.464153%
$ (189,514) $ (233,285) $ (244,797) $ (502,776)
$ 3,651,627 $ 4,373,249 $ 5,432,452 $ 6,698,731
-5.19% -5.33% -4.51% -7.51%
126.97% 123.07% 116.52% 121.53%
2018 2019 2020 2021 2022
$ 146,066 $ 84,841 $ 110,280 $ 135,315 $ 163,929
146,066 84,841 110,280 135,315 163,929
$ 0 $ 0 $ 0 $ 0 $ 0
$ 3,651,627 $ 4,373,249 $ 5,432,452 $ 6,698,731 $ 8,000,779
4.00% 1.94% 2.03% 2.02% 2.05%
- 121 -
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES lN TOTAL OPEB LIABILITY
AND RELATED RATIOS-CLEVELAND CITY PLAN
FISCAL YEAR ENDING JCTNE 30,
2018 2019 2020 2021 2022
Total Opeb Liability
Service cost $ 1,418,428 $ 1,328,012 $ 1,265,001 $ 1,930,238 $ 1,815,569
Interest 1,349,197 1,453,222 1,231,461 1,034,942 864,964
Changes in benefit terms 0 0 0 0 0
Differences between actual&
expected experience 0 0 (3,298,512) 0 (8,769,070)
Change of assumprions (2,040,010) 2,750,384 5,689,737 0 (9,145,387)
Benefit payments (752,042) (795,581) (878,586) (929,822) (763,416)
Net change in total opeb liability $ (24,427) $ 4,736,037 $ 4,009,101 $ 2,035,358 $ (15,997,340)
Total opeb liability-beginning 36,641,373 36,616,946 41,352,983 45,362,084 47,397,442
Total opeb liability-ending $ 36,616,946 $ 41,352,983 $ 45,362,084 $ 47,397,442 $ 31,400,102
Covered-employeepayroll $ 16,988,863 $ 17,632,943 $ 18,476,2b6 $ 19,180,809 $ 20,101,381
Employer's proportionate share
of collective total opeb liability
as a percentage of covered
payroll 215.54% 234.52% 245.52% 247.11% 156.21%
Notes to Schedule
This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years unti110 years of information is available.
There aze no assets accumulating,in a trust that meets the criteria in paragraph 4 of GASB Statement
No.75,related to this opeb plan.
- 122-
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CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY AND RELATED �
RATIOS-CLEVELAND UTILITIES
FISCAL YEAR ENDING JUNE 30,
2017 2018
Total Opeb Liability .
Service cost $ 295,896 $ 229,164
Interest 1,020,431 1,144,551
Differences from experience (3,991) (2,102,456)
Change of assumptions 0 1,470,517
Benefit payments (626,601) (637,980)
Net change in total opeb liabiliiy $ 685,735 $ 103,796
Total opeb liability-beginning 13,619,452 15,344,728
Other 1,039,541 0
Total opeb liability-ending(a) $ 15,344,728 $ 15,448,524
Plan Fiduciary Net Position
Contributions-employer $ 959,681 $ 637,980
Net investment income 25,731 26,910
Benefitpayable (626,601) (637,980)
Difference from experience 0 2,926
Administrative expense 0 0
Net change in plan fiduciary net position $ 358,811 $ 29,836
Plan fiduciary net position-beginning 0 358,811
Plan fiduciary net position-ending(b) $ 358,811 $ 388,647
Net Pension Liability-ending(a)-(b) $ 14,985,917 $ 15,059,877
Plan fiduciary net position as a percentage
of total opeb liability 2.34% 2.52%
Covered payroll $ 11,561,465 $ 12,496,462
Net opeb liability as a percentage
of covered payroll 129.62% 120.51%
Assumption changes:
Discount rate 7.50% 7.50%
Healthcare Trend rates 9.00% 9.00%
Mortality Table RP2000 RP2000
Scale BB Scale BB
Note-Tlus is a 10-year schedule;however,the information in this schedule is not required to be presented retr�oactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
- 123-
2019 2020 2021 2022
$ 234,893 $ 228,621 $ 255,499 $ 243,180
1,153,072 1,038,874 1,081,058 1,023,028
0 (1,355,935) 0 (1,711,731)
468,861 (375,515) 0 275,621
(629,622) (676,531) (706,042) (728,585)
$ 1,227,204 $ (1,140,486) $ 630,515 $ (898,487)
15,448,524 16,675,728 15,535,242 16,165,757
0 0 0 0
$ 16,675,728 $ 15,535,242 $ 16,165,757 $ 15,267,270
$ 1,287,545 $ 1,361,034 $ 1,160,326 $ 1,440,742
29,149 79,512 127,580 168,310
(629,622) (676,531) (706,042) (728,585)
13,503 (30,669) 0 36,484
0 0 0 0
$ 700,575 $ 733,346 $ 581,864 $ 916,951
388,647 1,089,222 1,822,568 2,404,432
$ 1,089,222 $ 1,822,568 $ 2,404,432 $ 3,321,383
$ 15,586,506 $ 13,712,674 $ 13,761,325 $ 11,945,887
6.53% 11.73% 14.87% 21.75%
$ 12,808,874 $ 13,195,712 $ 15,724,519 $ 14,404,728
121.69% 103.92% 87.52% 82.93%
7.30% 7.00% 7.00% 7.00%
8.00% 7.50% 7.00% 7.00%
RP2000 RPH-2014 RPH-2014 RPH-2014
Scale BB Scale MP2019 Scale MP2019 Scale MP2021
- 124-
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CONTRIBUTIONS BASED ON
PARTICIPATION IN THE OPEB PLAN-CLEVELAND UTILITIES
LAST FISCAL YEAR ENDING JUNE 30,
2017 2018
Actuarially determined contribution $ 959,681 $ 1,160,104
Contributions in relation to the
actuarially determined contribution 959,681 637,980
Contribution deficiency(excess) $ 0 $ 522,124
Covered payroll $ 11,561,465 $ 12,496,462
Contribution as a percentage
of covered payroll 8.30% 5.11%
Methods and assumptions used to determine coniribution rates:
Actuarial cost method Entry Age Normal
Amortization method Level percentage of payroll
Remaining amortization period 27 years
Asset valuation Market Value
Inflation 2.5 percent
Healthcare trend rates 7.5 initial,decreasing to an ultimate rate of 4.5%.
Salary increases 4%
Invesiment rate of return 7.3%
Healthcaze trend rates 9.00% 9.00%
decreasing decreasing
to 5.0%in to 5.0%in
2021 2021
Average assumed retirement age 63 63
Mortality table: RP2000 RP2000
with with
Scale Scale
BB BB
SCHEDULE OF INVESTMENT RETURNS
FISCAL YEAR ENDING JUNE 30,
2017 2018
Annual money-weighted rate of return,
net of investment expense 10.1% 8.0%
Note-These are 10-year schedules;however,the information in these schedules is not required to be presented
retroactively. Years will be added to this schedule in future fiscal years until 10 years of information is available.
- 125-
2019 2020 2021 2022
$ 1,185,998 $ 1,157,071 $ 1,160,326 $ 1,078,379
1,287,545 1,361,034 1,404,235 (1,440,742)
$ (101,547) $ (203,963) $ (243,909) $ 2,519,121
$ 12,808,874 $ 13,195,712 $ 15,724,519 $ 14,404,728
10.05% 10.31% 8.93% -10.00%
8.00% 7.50% 7.00% 7.00%
decreasing decreasing decreasing decreasing
to 5.0%in to 4.5%in to 4.5%in to 4.5%in
2021 2025 2025 2026
63 61 61 61 .
RP2000 RPH2O14 RPH2O14 RPH2O14
with with with with
Scale Scale Scale Scale
BB NIP2019 MP2019 MP2021
2019 2020 2021 2022
43% 2.9% 23.2% -14.2%
- 126-
CITY OF CLEVELAND,TENNESSEE
REQUIRED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN PROPORTIONATE SHARE OF COLLECTNE OPEB LIABILITY
AND RELATED RATIOS-CLEVELAND CITY SCHOOLS TGOP PLAN
FISCAL YEAR ENDING JCTNE 30,
2018 2019 2020 2021 2022
Total Opeb Liability
Service cost $ 828,906 $ 769,923 $ 696,490 $ 647,066 $ 747,110
Interest 359,948 437,462 368,736 383,918 263,056
Changes in benefit terms 0 (75,172) (299,602) 0 0
Differences between actual&
expected experience 0 (3,150,465) 1,283,526 (977,622) 244,599
Changeofassumptions (567,167) 573,433 (766,891) 1,222,261 105,503
Benefitpayments (553,733) (649,138) (523,362) (437,894) (381,466)
Net change in total opeb liability $ 67,954 $ (2,093,957) $ 758,897 $ 837,729 $ 978,802
Total opeb liability-beginning 11,774,947 11,842,901 9,748,944 10,507,841 11,345,570
Total opeb liability-ending(a) $ 11,842,901 $ 9,748,944 $ 10,507,841 $ 11,345,570 $ 12,324,372
Nonemployer contributing entities
proportionate share of the
collective total OPEB liability $ 2,470,228 $ 2,218,869 $ 2,420,932 $ 2,778,529 $ 3,159,007
Employer's proportionate share
of the collective total
opeb liability $ 9,372,673 $ 7,530,075 $ 8,086,909 $ 8,567,041 $ 9,165,365
Covered-employee payroll $ 23,866,594 $ 22,407,393 $ 21,905,135 $ 21,080,223 $ 20,245,863
Employer's proportionate share of
the collective total opeb liability
as a percentage of covered payroll 39.27% 33.61% 36.92% 40.64% 45.27%
Notes to Schedule
This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years until 10 years of information is available.
There are no assets accumulating in a trust that meets the criteria in paragraph 4 of GASB Statement
No.75,related to this opeb plan.
The amounts reported for each fiscal year were determined as of the prior fiscal year.
- 127-
CITY OF CLEVELAND,TENNESSEE
REQUIlZED SUPPLEMENTARY INFORMATION
SCHEDULE OF CHANGES IN PROPORTIONATE SHARE OF COLLECTIVE OPEB LIABILITY
AND RELATED RATIOS-CLEVELAND CITY SCHOOLS TNP PLAN
FISCAL YEAR ENDING JUNE 30,
2018 2019 2020 2021 2022
Total Opeb Liability
Service cost $ 30,748 $ 25,093 $ 21,979 $ 26,804 $ 38,723
Interest 43,879 49,439 45,454 50,156 37,220
Changes in benefit terms 0 0 0 0 0
Differences between actual
&expected experience 0 (132,665) 145,016 (49,046) (12,039)
Changeofassumptions (121,774) (9,326) 20,174 279,558 (239,064)
Benefit payments (60,600) (61,733) (63,886) (64,403) (63,767)
Net change in total opeb liability $ (107,747) $ (129,192) $ 168,737 $ 243,069 $ (238,927)
Total opeb liability-beginning 1,502,266 1,394,519 1,265,327 1,434,064 1,677,133
Total opeb liability-ending(a) $ 1,394,519 $ 1,265,327 $ 1,434,064 $ 1,677,133 $ 1,438,206
Nonemployer contributing entities
proportionate share of the
the collective total OPEB liability $ 1,394,519 $ 1,265,327 $ 1,434,064 $ 1,677,133 $ 1,438,206
Employer's proportionate shaze of
the collective total opeb liability $ 0 $ 0 $ 0 $ 0 $ 0
Notes to Schedule
This is a 10-year schedule;however,the information in this schedule is not required to be presented retroactively.
Years will be added to this schedule in future fiscal years unti110 years of information is available.
There are no assets accumulating in a trust that meets the criteria in paragraph 4 of GASB Statement
No.75,related to this opeb plan.
The amounts reported for each fiscal year were determined as of the prior fiscal yeaz.
- 128-
NONMAJOR GOVERNMENTAL FUNDS
Special Revenue Funds
Special revenue funds are used to account for the proceeds of specific revenues that are
legally restricted to finance specific functions or activities of government and which,
therefore, cannot be diverted to other uses.
State Street Aid Fund: This fund accounts for maintenance of all non-State streets in
the City. Revenues are provided from a portion of the State of Tennessee gasoline and
motor fuels tax.
Solid Waste Management Fund: This fund accounts for the revenues and expenditures
of the City of Cleveland's Solid Waste Management program.
School Federal Projects Fund: This fund accounts for federal project funds received
from the Federal government and for the disbursement of those funds for federal
programs of the City of Cleveland.
School Food Services Fund: This fund is used to account for the revenues and
expenditures of the City of Cleveland public school cafeterias.
Library Fund: This fund is used to account for revenues and expenditures of the City's
public library.
Drug Enforcement Fund: This fund is used to account for investigations of violations
of controlled substance laws and is funded primarily by the state statute from the receipt
of fines and costs related to drug enforcement cases.
Metropolitan Transportation Planning Organization Fund: This fund will serve
Cleveland and the urbanized portions of Bradley County by transportation planning and
the implementation of transportation projects.
Community Development Block Grant: This fund is used to account for a grant
received from the United States Department of Housing and Urban Development.
E-Ticketing: This fund is used to assist the Cleveland Police Department's transition to
e-ticketing to recoup the cost of an electronic citation program.
Byrne Memorial Justice Assistance Grant: This fund is used to account for grants
received from the United States Department of Justice for the purchase of equipment for
the Cleveland Police Department.
Debt Service
The Debt Service Fund is used for the accumulation of resources for, and the payment of,
principal and interest on general long-term debt.
Capital Projects
The Capital Projects Funds are used to account for the acquisition or construction of
major capital facilities other than those financed by proprietary funds and trust funds.
THDA Cleveland Home Grant: This fund accounts for grants received from the
Tennessee Housing Development Agency for housing rehabilitation in the community.
Sales Tax Capital Projects Fund: This fund is used to account for the proceeds from a
.5 cent increase in the sales tax rate approved in a March 2009 referendum. The
ordinance approving the referendum provided that all of the tax increase is used for
capital projects for the City and City Schools.
Blythe Sidewalks Diabetes Initiative: This fund accounts for construction of a
pedestrian walkway on Chippewa Ave,beginning at l lth street and continuing to 2ptn
Street. project will include amenities such as lighting, trees, and crosswalks. It is funded
by the State of Tennessee Department of Health.
School Capital Improvement Projects Fund: This fund accounts for bond proceeds
issued by Bradley County's PIE Center to fund the city school's capital projects.
American Rescue Plan Fund: This fund accounts for the direct relief received from the
American Rescue Plan to assist in the facilitate the United States' recovery from
economic and health effects of the COVID-19 pandemic.
Permanent Fund
Meiler Estate Animal Shelter Trust Fund: This fund is used to account for funds
bequeathed to the City of Cleveland Animal Control by John and Elizabeth Jean Meiler.
CITY OF CLEVELAND,TENNESSEE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30,2022
Special Revenue
State Solid School School
Street Waste Federal Food
Aid Management Projects Services
Fund Fund Fund Fund
ASSETS
Cash and cash equivalents $ 2,511,479 $ 1,570,875 $ 0 $ 2,004,606
Cash and cash equivalents-restricted 0 0 0 0
Investments 0 0 0 0
Investments-restricted 0 0 0 0
Accounts receivable 0 295,056 0 0
Due from other government agencies 288,281 0 1,831,520 0
Due from other funds 0 0 0 0
Prepaids 0 0 0 0
Total Assets $ 2,799,760 $ 1,865,931 $ 1,831,520 $ 2,004,606
LIABILITIES
Accrued liabilities $ 13,968 $ 15,202 $ 373,670 $ 0
Accounts payable 0 36,786 0 6,142
Due to other funds 0 0 1,449,609 0
Uneamed revenue 0 0 0 14,627
Total Liabilities $ 13,968 $ 51,988 $ 1,823,279 $ 20,769
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-other $ 0 $ 0 $ 0 $ 0
Total Deferred Inflows of Revenues $ 0 $ 0 $ 0 $ 0
FUND BALANCES
Nonspendable:
Prepaid items $ 0 $ 0 $ 0 $ 0
Permanent fund principal 0 0 0 0
Restricted for:
Law enforcement 0 0 0 0
Community development-federal grants 0 0 0 0
Street improvements 2,785,792 0 0 0
Capital outlay 0 0 0 0
Education 0 0 8,241 0
Committed to:
Solid Waste 0 1,813,943 0 0
Assigned to:
Education 0 0 0 1,983,837
Library 0 0 0 0
Debt service 0 0 0 0
Capital outlay 0 0 0 0
Total Fund Balances $ 2,785,792 $ 1,813,943 $ 8,241 $ 1,983,837
Total Liabiliries,Deferred Inflows of
Resources,and Fund Balances $ 2,799,760 $ 1,865,931 $ 1,831,520 $ 2,004,606
- 129-
Special Revenue
Metropolitan Community
Transportation Development
Drug Planning Block
Library Enforcement Organization Grant
Fund Fund Fund Fund
$ 321,938 $ 228,076 $ 9,928 $ 0
0 0 0 0
219,254 0 0 0
0 0 0 0
0 0 0 0
� 18,997 2,637 110,245 333,469
0 0 0 0
0 0 0 200
$ 560,189 $ 230,713 $ 120,173 $ 333,669
$ 0 $ 0 $ 5,715 $ 2,220
6,833 2,129 10,405 109,024
0 0 0 66,3 85
0 0 0 0
$ 6,833 $ 2,129 $ 16,120 $ 177,629
$ 0 $ 0 $ 0 $ 0
$ 0 $ 0 $ 0 $ 0
$ 0 $ 0 $ 0 $ 200
13,700 0 0 0
0 228,584 0 0
0 0 0 155,840
0 0 0 0
0 0 104,053 0
0 0 0 0
0 0 0 0
0 0 0 0
539,656 0 0 0
0 0 0 0
0 0 0 0
$ 553,356 $ 228,584 $ 104,053 $ 156,040
$ 560,189 $ 230,713 $ 120,173 $ 333,669
- 130-
CITY OF CLEVELAND,TENNESSEE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS(Continued)
June 30,2022
Special Revenue Debt Service Capital Projects
Sales
Tax
E-Ticketing Debt Capital
Grant Service Proj ects
Fund Fund Fund
ASSETS
Cash and cash equivalents $ 28,389 $ 5,833,361 $ 5,183,729
Cash and cash equivalents-restricted 0 0 0
Investments 0 0 0
Investments-restricted 0 0 0
Accounts receivable 0 0 0
Due from other government agencies 0 0 1,064,854
Due from other funds 0 828,333 0
Prepaids 0 0 0
Tota1 Assets $ 28,389 $ 6,661,694 $ 6,248,583
LIABILITIES
Accrued liabilities $ 0 $ 2,097 $ 0
Accounts payable 0 0 166,960
Due to other funds 0 0 0
Unearned revenue 0 0 0
Tota.l Liabilities $ 0 $ 2,097 $ 166,960
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue-other $ 0 $ 0 $ 124,414
Total Deferred Inflows of Revenues $ 0 $ 0 $ 124,414
FLTND BALANCES:
Nonspendable:
Prepaid items $ 0 $ 0 $ 0
Permanent fund principal 0 0 0
Restricted for:
Law enforcement 28,389 0 0
Community development-federal grants 0 0 0
Street improvements 0 0 0
Capital outlay 0 0 5,957,209
Education 0 0 0
Committed to:
Solid Waste 0 0 0
Assigned to:
Education 0 0 0
Library 0 0 0
Debt service 0 6,659,597 0
Capital outlay 0 0 0
Total Fund Balances $ 28,389 $ 6,659,597 $ 5,957,209
Total Liabilities,Deferred Inflows of
Resources,and Fund Balances $ 28,389 $ 6,661,694 $ 6,248,583
- 131 -
Permanent
Capital Projects Fund
School Meiler
Blythe Capital American Estate Total
Sidewalks Improvement Rescue Animal Nonmajor
Diabetes Projects Plan Shelter Governmental
Initiative Fund Fund Trust Fund Funds
$ 0 $ 4,542,440 $ 3,060,590 $ 43,234 $ 25,338,645
0 0 0 209,353 209,353
0 0 0 0 219,254
0 0 0 250,583 250,583
0 0 0 28 295,084
42,407 0 0 0 3,692,410
0 0 0 0 828,333
0 0 0 0 200
$ 42,407 $ 4,542,440 $ 3,060,590 $ 503,198 $ 30,833,862
$ 0 $ 0 $ 0 $ 0 $ 412,872
2,170 125,896 0 0 466,345
40,237 0 0 0 1,556,231
0 0 0 0 14,627
$ 42,407 $ 125,896 $ 0 $ 0 $ 2,450,075
$ 0 $ 0 $ 0 $ 0 $ 124,414
$ 0 $ 0 $ 0 $ 0 $ 124,414
$ 0 $ 0 $ 0 $ 0 $ 200
0 0 0 459,936 473,636
0 0 0 0 256,973
0 0 0 0 155,840
0 0 0 0 2,785,792
0 4,416,544 3,060,590 0 13,538,396
0 0 0 0 8,241
0 0 0 0 1,813,943
0 0 0 0 1,983,837
0 0 0 0 539,656
0 0 0 0 6,659,597
0 0 0 43,262 43,262
$ 0 $ 4,416,544 $ 3,060,590 $ 503,198 $ 28,259,373
$ 42,407 $ 4,542,440 $ 3,060,590 $ 503,198 $ 30,833,862
- 132-
CITY OF CLEVELAND,TENNESSEE
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Fiscal Year Ended June 30,2022
Special Revenue
State Solid School School
Street Waste Federal Food
Aid Management Projects Services
Fund Fund Fund Fund
Revenues:
Taxes $ 0 $ 0 $ 0 $ 0
Intergovernmental 1,639,631 0 9,265,202 4,724,608
Fines and forfeitures 0 0 0 0
Charges for services 0 3,488,577 0 89,769
Interest 7,663 5,265 0 135
Miscellaneous 4,770 26,715 0 0
Total revenues $ 1,652,064 $ 3,520,557 $ 9,265,202 $ 4,814,512
Expenditures:
Current:
General government $ 0 $ 0 $ 0 $ 0
Development and engi.neering 0 0 0 0
Public safety 0 0 0 0
Public works 684,436 . 3,819,031 0 0
Culiure and recreation 0 0 0 0
Education 0 0 7,986,201 3,516,542
Capital Outlay 0 0 1,282,279 0
Debt Service 0 0 0 0
Total expenditures $ 684,436 $ 3,819,031 $ 9,268,480 $ 3,516,542
Excess(deficiency)of
revenues over expenditures $ 967,628 $ (298,474) $ (3,278) $ 1,297,970
Other financing sources(uses):
Transfers in $ 0 $ 850,000 $ 0 $ 0
Transfers out (447,836) 0 (3,737) 0
Total other financing sources
sources(uses) $ (447,836) $ 850,000 $ (3,737) $ 0
Net change in fund balances $ 519,792 $ 551,526 $ (7,015) $ 1,297,970
Fund balances at beginning of year 2,266,000 1,262,417 15,256 685,867
Fund balances at end ofyeaz $ 2,785,792 $ 1,813,943 $ 8,241 $ 1,983,837
- 133 -
Special Revenue
Metropolitan Community
Transportation Development
Drug Planning Block E-Ticketing
Library Enforcement Organization Grant Grant
Fund Fund Fund Fund Fund .
$ 0 $ 0 $ 0 $ 0 $ 0
742,822 0 133,179 869,486 0
0 36,996 0 0 405
39,081 0 0 0 0
240 714 0 0 0
17,676 0 0 0 0
$ 799,819 $ 37,710 $ 133,179 $ 869,486 $ 405
$ 0 $ 0 $ 282,683 $ 0 $ 0
0 0 0 150,067 0
0 17,616 0 0 834
0 0 0 0 0
1,456,609 0 0 0 0
0 0 0 0 0
17,396 0 0 639,447 0
0 0 0 0 0
$ 1,474,005 $ 17,616 $ 282,683 $ 789,514 $ 834
$ (674,186) $ 20,094 $ (149,504) $ 79,972 $ (429)
$ 679,900 $ 0 $ 89,000 $ 30,000 $ 0
0 0 0 0 0
$ 679,900 $ 0 $ 89,000 $ 30,000 $ 0
$ 5,714 $ 20,094 $ (60,504) $ 109,972 $ (429)
547,642 208,490 164,557 46,068 28,818
$ 553,356 $ 228,584 $ 104,053 $ 156,040 $ 28,389
- 134-
CITY OF CLEVELAND,TENNESSEE
COMBINING STATEMENT OF REVENUES,EXPENDITURES
AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS(Continued)
For the Fiscal Year Ended June 30,2022
Special Revenue Debt Service Capital Projects
Blythe Sales
Memorial THDA Tax
Justice Debt Cleveland Capital
Assistance Service Home Projects
Grant Fund Grant Fund
Revenues:
Taxes $ 0 $ 0 $ 0 $ 5,243,770
Intergovernmental 12,821 112,359 53,972 0
Fines and forfeitures 0 0 0 0
Charges for services 0 0 0 0
Interest 0 13,811 0 49,630
Miscellaneous 0 0 0 0
Total revenues $ 12,821 $ 126,170 $ 53,972 $ 5,293,400
Expenditures:
Current:
General government $ 0 $ 0 $ 0 $ 0
Development and engineering 0 0 0 0
Public safety 12,821 0 0 0
Public works 0 0 0 0
Culture and recreation 0 0 � 0 0
Education 0 0 0 0
Capital Outlay 0 0 53,972 4,153,911
Debt Service 0 7,446,780 0 685,586
Total expenditures $ 12,821 $ 7,446,780 $ 53,972 $ 4,839,497
Excess(deficiency)of
revenues over expenditures $ 0 $ (7,320,610) $ 0 $ 453,903
Other fmancing sources(uses):
Transfers in $ 0 $ 7,993,328 $ 0 $ 0
Transfers out 0 0 0 0
Total other financing
sources(uses) $ 0 $ 7,993,328 $ 0 $ 0
Net change in fund balances $ 0 $ 672,718 $ 0 $ 453,903
Fund balances at beginning of year 0 5,986,879 0 5,503,306
Fund balances at end of year $ 0 $ 6,659,597 $ 0 $ 5,957,209
- 135-
Permanent
Capital Projects Fund
School Meiler
Blythe Capital American Estate Total
Sidewalks Improvement Rescue Animal Nonmajor
Diabetes Projects Plan Shelter Governmental
Initiative Fund Fund Trust Fund Funds
$ 0 $ 0 $ 0 $ 0 $ 5,243,770
182,000 0 4,656,500 0 22,392,580
0 0 0 0 37,401
0 0 0 0 3,617,427
0 15,070 8,134 1,894 102,556
0 0 0 0 49,161
$ 182,000 $ 15,070 $ 4,664,634 $ 1,894 $ 31,442,895
$ 0 $ 0 $ 714,672 $ 0 $ 997,355
0 0 300,000 0 450,067
0 0 0 0 31,271
0 0 0 0 4,503,467
0 0 0 0 1,456,609
0 0 0 0 11,502,743
182,000 721,548 589,372 0 7,639,925
0 0 0 0 8,132,366
$ 182,000 $ 721,548 $ 1,604,044 $ 0 $ 34,713,803
$ 0 $ (706,478) $ 3,060,590 $ 1,894 $ (3,270,908)
$ 0 $ 0 $ 0 $ 0 $ 9,642,228
0 0 0 0 (451,573)
$ 0 $ 0 $ 0 $ 0 $ 9,190,655
$ 0 $ (706,478) $ 3,060,590 $ 1,894 $ 5,919,747
0 5,123,022 0 501,304 22,339,626
$ 0 $ 4,416,544 $ 3,060,590 $ 503,198 $ 28,259,373
- 136-
CITY OF CLEVELAND,TENNESSEE
STATE STREET AID FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
State gas tax $ 1,475,000 $ 1,475,000 $ 1,639,631 $ 164,631
Interest 2,000 2,000 7,663 5,663
Miscellaneous 0 0 4,770 4,770
Total revenues $ 1,477,000 $ 1,477,000 $ 1,652,064 $ 175,064
Expenditures:
Current:
Public works:
Salaries $ 474,850 $ 473,850 $ 431,539 $ 42,311
Overtime wages 7,900 7,900 4,827 3,073
Service awards 550 550 550 0
Longevity 10,650 10,650 10,650 0
Soldvacations 4,800 4,800 1,615 3,185
Christmas bonus 1,200 1,083 1,083 0
Sick pay incentive 2,000 1,300 1,300 0
Dental insurance 5,600 5,600 3,678 1,922
Social security 38,500 38,500 33,798 4,702
Health insurance 121,600 121,600 85,755 35,845
Retirement 86,270 86,270 78,282 7,988
Life and disability insurance 5,800 5,800 4,728 1,072
Vision insurance 1,400 1,400 845 555
Worker's compensation claims 1,000 3,400 2,928 472
Pre-employment testing 500 196 130 66
Safety shoes 1,700 1,421 1,421 0
Worker's compensation 24,000 22,363 21,307 1,056
Capital outlay:
Equipment replacement 175,000 213,658 0 213,658
Total expenditures $ 963,320 $ 1,000,341 $ 684,436 $ 315,905
Excess of revenues
over expenditures $ 513,680 $ 476,659 $ 967,628 $ 490,969
Other financing sources(uses):
Transfers out $ (447,836) $ (447,836) $ (447,836) $ 0
Total other financing sources(uses) $ (447,836) $ (447,836) $ (447,836) $ 0
Net change in fund balance $ 65,844 $ 28,823 $ 519,792 $ 490,969
Fund balance at beginning of year 2,266,000 2,266,000 2,266,000 0
Fund balance at end ofyear $ 2,331,844 $ 2,294,823 $ 2,785,792 $ 490,969
- 137-
CITY OF CLEVELAND,TENNESSEE
SOLID WASTE MANAGEMENT FUND
SCHEDULE OF REVENLTES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Charges for services:
Commercial garbage $ 1,400,000 $ 1,400,000 $ 1,522,925 $ 122,925
Residential garbage 1,900,000 1,900,000 1,965,652 65,652
Interest 1,000 1,000 5,265 4,265
Miscellaneous 0 20,274 26,715 6,441
Total revenues $ 3,301,000 $ 3,321,274 $ 3,520,557 $ 199,283
Expenditures:
Current:
Public works:
Salaries $ 622,450 $ 599,450 $ 471,540 $ 127,910
Overtime wages 20,000 21,000 20,485 515
Supplement pay 700 700 600 100
Service awards 950 950 950 0
Longevity 17,325 14,125 13,575 550
Sold vacation 7,600 7,600 3,430 4,170
Christmas bonus 1,600 1,600 1,083 517
Sick pay incentive 2,300 2,300 1,550 750
Dental insurance 8,300 8,300 5,083 3,217
Social security 60,200 60,200 37,754 22,446
Health insurance 167,600 167,600 106,370 61,230
Retirement 115,700 115,700 86,809 28,891
Life and disability insurance 7,200 7,200 5,457 1,743
Vision insurance 2,100 2,100 1,000 1,100
Worker's compensation claims 2,000 4,000 3,572 428
Pre-employment testing 600 600 545 55
Safety shoes 2,000 1,500 1,259 241
Postage 100 65 0 65
GPS services 3,900 3,900 2,201 1,699
Subscriptions and memberships 100 100 0 100
Advertising 200 200 0 200
Litter and recycling 10,000 10,000 0 10,000
Building and grounds maintenance 300 300 297 3
Professional development 400 400 0 400
. Tire disposal 2,200 2,200 0 2,200
Landfill 468,969 405,929 329,479 76,450
Residential account 1,108,280 1,112,480 1,112,226 254
Commercial account 1,189,753 1,240,753 1,237,315 3,438
Commercial recycling 91,773 91,813 91,540 273
Bradley County recycling 10,000 10,000 10,000 0
Office expenditures 700 735 733 2
Operating supplies 4,000 14,368 5,297 9,071
- 138-
CITY OF CLEVELAND,TENNESSEE
SOLID WASTE MANAGEMENT FLTND (Continued)
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Current-(Continued):
Public works-(Continued):
Safety supplies $ 500 $ 500 $ 370 $ 130
Uniforms 4,000 4,000 2,770 1,230
Gasoline and oil 62,000 84,000 88,240 (4,240)
Repairs and parts 105,000 121,406 126,979 (5,573)
Insurance-property 800 800 119 681
Insurance-vehicle 13,300 13,187 13,187 0
Insurance-general liability 10,000 8,872 8,872 0
, Insurance-workers compensation 24,600 29,400 28,344 1,056
Miscellaneous 500 500 0 500
Total expenditures $ 4,150,000 $ 4,170,833 $ 3,819,031 $ 351,802
Excess(deficiency)of revenues
over expenditures $ (849,000) $ (849,559) $ (298,474) $ 551,085
Other financing sources:
Transfers in $ 850,000 $ 850,000 $ 850,000 $ 0
Total other financing sources $ 850,000 $ 850,000 $ 850,000 $ 0
Net change in fund balance $ 1,000 $ 441 $ 551,526 $ 551,085
Fund balance at beginning of year 1,262,417 1,262,417 1,262,417 0
Fund balance at end of year $ 1,263,417 $ 1,262,858 $ 1,813,943 $ 551,085
- 139-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FEDERAL PROJECTS FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Federal government $ 21,715,265 $ 21,725,234 $ 9,265,202 $ (12,460,032)
Total revenues $ 21,715,265 $ 21,725,234 $ 9,265,202 $ (12,460,032)
Expenditures:
Current:
Education:
Regular instruction $ 5,980,296 $ 6,001,797 $ 2,645,333 $ 3,356,464
Special education 1,640,678 1,625,678 1,199,898 425,780
Vocational education 702,071 704,013 703,089 924
Supportservices 7,131,481 7,133,007 3,437,881 3,695,126
Capital outlay:
Building improvements 6,271,380 6,271,380 1,282,279 4,989,101
Total expenditures $ 21,725,906 $ 21,735,875 $ 9,268,480 $ 12,467,395
Excess of revenues
over expenditures $ (10,641) $ (10,641) $ (3,278) $ 7,363
Other financing sources(uses):
Transfers out $ (4,615) $ (4,615) $ (3,737) $ 878
Total other financing sources(uses) $ (4,615) $ (4,615) $ (3,737) $ 878
Net change in fund balance $ (15,256) (15,256) (7,015) 8,241
Fund balance at beginning of year 15,256 15,256 15,256 0
Fund balance at end of year $ 0 $ 0 $ 8,241 $ 8,241
- 140-
CITY OF CLEVELAND,TENNESSEE
SCHOOL FOOD SERVICES FUND
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
USDA reimbursements $ 3,885,933 $ 3,141,007 $ 4,724,608 $ 1,583,601
Charges for services 67,000 94,605 89,769 (4,836)
Interest 500 100 13 5 3 5
Total revenues $ 3,953,433 $ 3,235,712 $ 4,814,512 $ 1,578,800
Expenditures:
Current:
Education:
Clerical personnel $ 60,475 $ 106,010 $ 93,217 $ 12,793
Cafeteria personnel 1,204,375 994,570 934,036 60,534
In-service training 2,000 2,000 0 2,000
Social security 75,850 64,926 53,631 11,295
State retirement 169,638 147,840 139,919 7,921
Life insurance 3,700 3,562 3,181 381
Medical insurance 266,760 244,632 235,621 9,011
Unemployment compensation 500 0 0 0
Employer medicare liability 17,707 15,188 14,195 993
Other fi-inge benefits 46,000 40,596 40,960 (364)
Communication 1,300 0 0 0
Dues and membership 1,200 235 1,322 (1,087)
Maintenance and repair services 40,000 38,026 51,754 (13,728)
Payments to Schools � 0 0 422 (422)
Transportation 3,000 873 2,528 (1,655)
Travel 2,500 0 3,417 (3,417)
Other contracted services 1,002,175 810,892 929,385 (118,493)
Food supplies 715,941 716,518 664,270 52,248
Office supplies 1,500 3,222 1,527 1,695
Uniforms 850 403 185 218
In-service staffdevelopment 1,200 76 1,169 (1,093)
Food commodities 236,262 0 280,259 (280,259)
Other supplies and materials 80,000 46,037 65,439 (19,402)
Applicant investigation 500 106 105 1
Food service equipment 20,000 0 0 0
Total expenditures $ 3,953,433 $ 3,235,712 $ 3,516,542 $ (280,830)
Excess of revenues
over expenditures $ 0 $ 0 $ 1,297,970 $ 1,297,970
Fund balance at beginning of year 685,867 685,867 685,867 0
Fund balance at end of yeaz $ 685,867 $ 685,867 $ 1,983,837 $ 1,297,970
- 141 -
CITY OF CLEVELAND,TENNESSEE
LIBRARY FUND
SCHEDULE OF REVENUES,EXPENDITURES AND
CHANGES IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovemmental:
Federal technology grant $ 0 $ 0 $ 31,037 $ 31,037
State grant 0 3,614 2,506 (1,108)
Private foundation grants 0 58,561 29,379 (29,182)
Bradley County 676,800 679,800 679,900 100
Charges for services 25,000 39,000 39,081 81
Interest 0 0 240 240
Miscellaneous:
Gifts 70,000 70,000 17,676 (52,324)
Total revenues $ 771,800 $ 850,975 $ 799,819 $ (51,156)
Expenditures:
Current:
Culture and recreation:
Salaries $ 764,800 $ 764,800 $ 739,566 $ 25,234
Employee benefits 280,000 280,000 277,316 2,684
Materials and online 128,100 117,122 110,749 6,373
Utilities 88,000 81,366 70,293 11,073
Equipment maintenance 15,500 15,540 17,572 (2,032)
Building and grounds maintenance 17,500 10,000 50,881 (40,881)
Office 70,200 70,250 73,804 (3,554)
Grant expenditures 0 76,018 49,445 26,573
Insurance 29,200 29,161 28,282 879
Gift and memorial expenditures 70,000 70,000 38,701 31,299
Capital Outlay:
Building improvements 0 398 1,315 (917)
Fumiture 1,500 1,102 4,627 (3,525)
Equipment 0 11,454 11,454 0
Total expenditures $ 1,464,800 $ 1,527,211 $ 1,474,005 $ 53,206
Excess(deficiency)of
revenues over expenditures $ (693,000) $ (676,236) $ (674,186) $ 2,050
Other financing sources:
Transfers in $ 679,900 $ 679,900 $ 679,900 $ 0
Total other financing sources $ 679,900 $ 679,900 $ 679,900 $ 0
Net change in fund balance $ (13,100) $ 3,664 $ 5,714 $ 2,050
Fund balance at beginning of year 547,642 547,642 547,642 0
Fund balance at end ofyear $ 534,542 $ 551,306 $ 553,356 $ 2,050
- 142-
CITY OF CLEVELAND,TENNESSEE
DRUG ENFORCEMENT FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Fines and forfeitures $ 18,500 $ 27,812 $ 36,996 $ 9,184
Interest 100 300 714 414
Total revenues $ 18,600 $ 28,112 $ 37,710 $ 9,598
Expenditures:
Current:
Public safety:
Seizedvehicles $ 7,500 $ 22,770 $ 17,616 $ 5,154
Investigative funds 10,000 10,000 0 10,000
Equipment 1,100 1,100 0 1,100
Total expenditures $ 18,600 $ 33,870 $ 17,616 $ 16,254
Excess(deficiency)of revenues
over expenditures $ 0 $ (5,758) $ 20,094 $ 25,852
Fund balance at beginning of year 208,490 208,490 208,490 0
Fund balance at end of year $ 208,490 $ 202,732 $ 228,584 $ 25,852
- 143 -
CITY OF CLEVELAND,TENNESSEE
METROPOLITAN TRANSPORTATION PLANNING ORGAI�TIZATION FiJND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Federalgrant $ 183,000 $ 198,000 $ 133,179 $ (64,821)
Totalrevenues $ 183,000 $ 198,000 $ 133,179 $ (64,821)
Expenditures:
Current:
General government:
Salaries $ 182,600 $ 182,600 $ 160,041 $ 22,559
Benefits 40,000 78,800 73,563 5,237
Postage and shipping 0 500 0 500
Telephone 0 2,400 1,132 1,268
Contracted services 105,000 57,600 16,700 40,900
Professional development 0 5,000 4,538 462
Office 0 6,500 5,627 873
Equipment 0 4,500 4,409 91
Soflwaze 12,000 16,700 16,673 27
Total expenditures $ 339,600 $ 354,600 $ 282,683 $ 71,917
Excess(deficiency)of
revenues overexpenditures $ (156,600) $ (156,600) $ (149,504) $ 7,096
Other financing sources: ,
Transfers in $ 44,500 $ 89,000 $ 89,000 $ 0
Total other financing sources $ 44,500 $ 89,000 $ 89,000 $ 0
Net change in fund balance $ (112,100) $ (67,600) $ (60,504) $ 7,096
Fund balance at begiiuiing of year 164,557 164,557 164,557 0
Fund balance at end of year $ 52,457 $ 96,957 $ 104,053 $ 7,096
, - 144-
CITY OF CLEVELAND,TENNESSEE
COMMLJNITY DEVELOPMENT BLOCK GRANT FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Community Development Block Grant-2017 $ 0 $ 2,598 $ 2,839 $ 241
Community Development Block Grant-2018 0 104,599 29,085 (75,514)
Community Development Block Grant-2019 0 59,900 23,850 (36,050)
Community Development Block Grant-2020 0 166,840 178,780 11,940
Community Development Block Grant-2021 363,964 363,964 312,711 (51,253)
COVID funds 0 396,896 322,221 (74,675)
Total revenues $ 363,964 $ 1,094,797 $ 869,486 $ (225,311)
Expenditures:
Current:
Community development:
Administration:
Salaries $ 48,109 $ 48,109 $ 48,203 $ (94)
Christmas bonus 76 76 76 0
Sick pay incentive 210 210 175 35
Dental insurance 269 269 207 62
Social security 3,702 3,702 3,964 (262)
Health insurance 6,197 6,197 5,873 324
Retirement 8,314 8,314 8,366 (52)
Life insurance and disability 605 605 805 (200)
Vision insurance 72 72 48 24
Advertising 700 700 402 298
Telephone 1,200 1,200 568 632
Professional services 2,400 2,400 601 1,799
Office supplies 800 800 93 707
Operating supplies-covid 0 11,651 11,651 0
Uniforms 0 0 245 (245)
Gasoline 531 531 196 335
Administrative costs 0 9,073 0 9,073
Down payment assistance 0 72,000 42,000 30,000
Miscellaneous-COVID 0 97,064 4,393 92,671
Miscellaneous 2,015 2,015 192 1,823
Hardware 0 936 936 0
Codes Enforcement:
Salaries 35,892 16,892 13,817 3,075
Christrnas bonus 109 0 0 0
Sick pay incentive 300 0 0 0
Dentalinsurance 752 752 94 658
Social security tax 2,777 2,777 1,082 1,695
Health insurance 17,816 11,513 2,693 8,820
Retirement 6,237 6,237 80 6,157
Life insurance 454 454 0 454
-145-
CITY OF CLEVELAND,TENNESSEE
COMMLJNITY DEVELOPMENT BLOCK GRANT FUND (Continued)
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variauce
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Conti.nued):
Current-(Continued):
Community development-(Continued):
Codes Enforcement-(Continued):
Vision insurance $ 526 $ 526 $ 22 $ 504
Advertising 100 100 0 100
Telephone 1,700 1,700 241 1,459
Vehicle maintenance 750 1,484 1,484 0
Professional development 1,000 1,000 0 1,000
Office supplies 150 257 304 (47)
Uniforms 500 500 291 209
Gasoline 1,000 1,000 527 473
Insurance-vehicles 550 348 348 0
Miscellaneous 1,187 755 90 665
Hardwaze 1,000 1,000 0 1,000
Capital outlay:
Projects to be determined 245,964 0 0 0
Avery Johnson Park 2 0 17,850 17,850 0
Capital projects 0 60,000 60,000 0
Avery Johnson Park 3 0 46,110 46,110 0
Mosby Park Phase II 0 117,327 84,644 32,683
Mosby Park Phase I 0 73,500 73,500 0
Mosby Park-covid 0 305,343 305,343 0
Capital projects 0 52,000 52,000 0
Tota.l Expenditures $ 393,964 $ 985,349 $ 789,514 $ 195,835
Excess(deficiency)of
revenues over expenditures $ (30,000) $ 109,448 $ 79,972 $ (29,476)
Other financing sources:
Transfers in $ 30,000 $ 30,000 $ 30,000 $ 0
Total other financing sources $ 30,000 $ 30,000 $ 30,000 $ 0
Net change in fund balance $ 0 $ 139,448 $ 109,972 $ (29,476)
Fund balance at beginning of year 46,068 46,068 46,068 0
Fund balance at end of year $ 46,068 $ 185,516 $ 156,040 $ (29,476)
- 146-
CITY OF CLEVELAND,TENNESSEE
E-TICKETING GRANT FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
1N FLJND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended 7une 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Fines and forfeitures:
Citation fee $ 0 $ 0 $ 405 $ 405
Total revenues $ 0 $ 0 $ 405 $ 405
Expenditures:
Current:
Public safety:
Technical fees and materials $ 0 $ 11,876 $ 834 $ 11,042
Technical supplies-Court Clerk 0 16,632 0 16,632
Total expenditures $ 0 $ 28,508 $ 834 $ 27,674
Excess(deficiency)of
revenues over expenditures $ 0 $ (28,508) $ (429) $ . 28,079
Fund balance at beginning of year 28,818 28,818 28,818 0
Fund balance at end ofyear $ 28,818 $ 310 $ 28,389 $ 28,079
- 147-
CITY OF CLEVELAND,T'ENNESSEE
BYRNE MEMORIAL JUSTICE ASSISTANCE GRANT
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Federal grant $ 0 $ 38,036 $ 12,821 $ (25,215)
Total revenues $ 0 $ 38,036 $ 12,821 $ (25,215)
Expenditures:
Current:
Public safety:
Bradley Couniy disparate $ 0 $ 12,821 $ 12,821 $ 0
Equipment replacement 0 25,215 0 25,215
Total expenditures $ 0 $ 38,036 $ 12,821 $ 25,215
Excess(deficiency)of
revenues over expenditures $ 0 $ 0 $ 0 $ 0
Fund balance at beginning of year 0 0 0 0
Fund balance at end of year $ 0 $ 0 $ 0 $ 0
- 148-
CITY OF CLEVELAND,TENNESSEE
DEBT SERVICE FUND
SCHEDULE OF REVENLTES,EXPENDITURES AND CHANGES
iN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Bradley County $ 146,450 $ 146,450 $ 112,359 $ (34,091)
Interest 5,000 5,000 13,811 8,811
Total revenues $ 151,450 $ 151,450 $ 126,170 $ (25,280)
Expenditures:
Debt service:
Principal retirement $ 8,342,000 $ 5,004,030 $ 4,809,030 $ 195,000
Interest and fiscal charges 3,855,747 2,883,023 2,637,750 245,273
Total expenditures $ 12,197,747 $ 7,887,053 $ 7,446,780 $ 440,273
Excess(deficiency)of
revenues over expenditures $ (12,046,297) $ (7,735,603) $ (7,320,610) $ 414,993
Other financing sources(uses):
Transfers in $ 12,046,649 $ 7,735,603 $ 7,993,328 $ 257,725
Total other financing sources $ 12,046,649 $ 7,735,603 $ 7,993,328 $ 257,725
Net change in fund balance $ 352 $ 0 $ 672,718 $ 672,718
Fund balance at beginning of year 5,986,879 5,986,879 5,986,879 0
Fund balance at end of year $ 5,987,231 $ 5,986,879 $ 6,659,597 $ 672,718
- 149-
CITY OF CLEVELAND,TENNESSEE
THDA CLEVELAND HOME GRANT
SCHEDULE OF REVENUES,EXPENDIT'URES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Federal grant $ 0 $ 53,972 $ 53,972 $ 0
Total revenues $ 0 $ 53,972 $ 53,972 $ 0
Expenditures:
Capital outlay:
Housing Rehabilitation ' $ 0 $ 44,448 $ 44,448 $ 0
Administrative Fees 0 9,524 9,524 0
Total expenditures $ 0 $ 53,972 $ 53,972 $ 0
Excess(deficiency)of
revenues over expenditures $ 0 $ 0 $ 0 $ 0
Fund balance at beginning of year 0 0 0 0
Fund balance at end of yeaz $ 0 $ 0 $ 0 $ 0
- 150-
CITY OF CLEVELAND,TENNESSEE
SALES TAX CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Taxes:
Local 1/2 cent sales tax $ 3,350,000 $ 3,471,000 $ 3,949,478 $ 478,478
School 1/2 cent sales tax 1,150,000 1,150,000 1,294,292 144,292
Interest 8,000 40,000 49,630 9,630
Total revenues $ 4,508,000 $ 4,661,000 $ 5,293,400 $ 632,400
Expenditures:
Capital outlay: .
Municipal building $ 0 $ 50,000 $ 0 $ 50,000
Downtown redevelopment 0 39,403 0 39,403
Cleveland State Community College 90,000 90,000 90,000 0
Vehicles-legislative and judicial 0 40,000 0 40,000
GIS 26,000 83,092 27,379 55,713
Inman Survey 0 24,000 11,500 12,500
Greenway Phase 6 461,500 238,954 22,393 216,561
CMAQ Park and Ride 0 240,000 0 240,000
Vehicles-police department 300,000 300,428 297,466 2,962
Vehicles-fire department 0 40,325 40,325 0
Apparatus replacement-fire department 300,000 767,950 500,000 267,950
Equipment replacement-SCBA 150,000 150,000 134,161 15,839
Capital projects 27,050 27,050 25,707 1,343
Transportation projects 0 254,750 61,971 192,779
Indian Hills 0 153,735 71,354 82,381
Adkisson Drive 0 12,000 64 11,936
Multi-modal access 0 36,482 30,704 5,778
LIC 0 1,153,337 319,224 834,113
Peerless extension 250,000 491,290 267,100 224,190
Transportation projects 0 16,210 0 16,210
Central Avenue 0 163,983 7,791 156,192
17th and 20th Street 0 199,811 190,982 8,829
Gaut Street 0 261,700 163,942 97,758
Parker Street 108,000 108,000 88,684 19,316
Paving 1,000,000 1,019,456 811,486 207,970
Sidewalks 65,000 125,085 17,075 108,010
Equipment-public works 150,000 315,534 125,634 189,900
Capital projects-jetport 0 45,000 45,000 0
Drainage projects-jetport 0 16,350 0 16,350
Environmental monitoring 0 6,500 6,500 0
Equipment-jetport 0 12,358 12,247 111
Capital projects 125,000 171,598 224,560 (52,962)
Greenway Willow Street extension 0 29,438 0 29,438
Tinsley Park-building 0 13,838 10,656 3,182
Tinsley Pazk-improvements 0 62,400 21,296 41,104
Equipment replacement-pazks and recreation 0 61,623 34,502 27,121
Capital projects-schools 467,413 494,208 494,208 0
- 151 -
CITY OF CLEVELAND,TENNESSEE
SALES TAX CAPITAL PROJECTS FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued):
Debt service:
QSCB principal $ 259,578 $ 259,578 $ 259,577 $ 1
QSCB interest 63,024 63,024 63,024 0
QSCB fiscal charges 4,160 4,160 4,160 0
Arnold School renovation-principal 60,000 60,000 60,000 0
Arnold School renovation-interest 41,500 41,500 41,500 0
ESG equipment facility-principal 135,000 135,000 135,000 0
ESG equipment facility-interest 122,325 122,325 122,325 0
Total expenditures $ 4,205,550 $ 8,001,475 $ 4,839,497 $ 3,161,978
Excess(deficiency)of
revenues over expenditures $ 302,450 $ (3,340,475) $ 453,903 $ 3,794,378
Fund balance at beginn.ing of yeaz 5,503,306 5,503,306 5,503,306 0
Fund balance at end of year $ 5,805,756 $ 2,162,831 $ 5,957,209 $ 3,794,378
- 152-
CITY OF CLEVELAND,TENNESSEE
BLYTHE SIDEWALKS DIABETES INITIATIVE
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
State grant $ 150,000 $ 182,000 $ 182,000 $ 0
Totalrevenues $ 150,000 $ 182,000 $ 182,000 $ 0
Expenditures:
Capital outlay:
Sidewallc improvement projects $ 150,000 $ 182,000 $ 182,000 $ 0
Total expenditures $ 150,000 $ 182,000 $ 182,000 $ 0
Excess(deficiency)of
revenues over e�enditures $ 0 $ 0 $ 0 $ 0
Fund balance at beginning of year 0 0 0 0
Fund balance at end of year $ 0 $ 0 $ 0 $ 0
- 153 -
CITY OF CLEVELAND,TENNESSEE
SCHOOL CAPITAL IMPROVEMENT PROJECTS FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Interest $ 0 $ 7,400 $ 15,070 $ 7,670
Total revenues $ 0 $ 7,400 $ 15,070 $ 7,670
Expenditures:
Capital outlay:
Land $ 0 $ 44,711 $ 12,172 $ 32,539
Improvements 0 825,461 709,376 116,085
Capital projects 0 4,052,850 0 4,052,850
Equipment 0 200,000 0 200,000
Total expenditures $ 0 $ 5,123,022 $ 721,548 $ 4,401,474
Excess(deficiency)of
revenues over expenditures $ 0 $ (5,115,622) $ (706,478) $ 4,409,144
Fund balance at beginning of year 5,123,022 5,123,022 5,123,022 0
Fund balance at end of year $ 5,123,022 $ 7,400 $ 4,416,544 $ 4,409,144
- 154-
CITY OF CLEVELAND,TENNESSEE
AMERICAN RESCUE PLAN FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental
Federal grant $ 0 $ 4,656,500 $ 4,656,500 $ 0
Interest 0 0 8,134 8,134
Total revenues $ 0 $ 4,656,500 $ 4,664,634 $ 8,134
Expenditures:
Current:
General government:
Covid bonus $ 0 $ 714,672 $ 714,672 $ 0
Development and engineering:
Habitat of Cleveland 0 300,000 300,000 0
City Field 0 400,000 0 400,000
Capital outlay:
Technology upgrade 0 693,400 589,372 104,028
Total expenditures $ 0 $ 2,108,072 $ 1,604,044 $ 504,028
Excess(deficiency)of
revenues over expenditures $ 0 $ 2,548,428 $ 3,060,590 $ 512,162
Fund balance at be �g n��ing of year 0 0 0 0
Fund balance at end of year $ 0 $ 2,548,428 $ 3,060,590 $ 512,162
- 155 -
CITY OF CLEVELAND,TENNESSEE
MEILER ESTATE ANIMAL SHELTER TRUST FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Interest $ 300 $ 300 $ 1,894 $ 1,594
Total revenues $ 300 $ 300 $ 1,894 $ 1,594
Excess of revenues
over expenditures $ 300 $ 300 $ 1,894 $ 1,594
Fund balance at beginning of year 501,304 501,304 501,304 0
Fund balance at end ofyear $ 501,604 $ 501,604 $ 503,198 $ 1,594
- 156-
MAJOR GOVERNMENTAL FUND
Major Governmental Fund are used when certain criteria are met: The total assets plus
deferred outflows, liabilities plus deferred inflows, revenues, or expenditures/expenses of
the individual governmental fund are at least 10 percent of the corresponding total.
Capital Improvement Program Fund: This fund accounts for city-wide capital
projects funded mainly by a transfer from the city's General Fund.
CITY OF CLEVELAND,TENNESSEE
CAPITAL IMPROVEMENT PROGRAM FUND
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Revenues:
Intergovernmental:
Federal grant-25th SdGeorgetown $ 0 $ 0 $ 2,294 $ 2,294
Federal grant- 17th and 20th 0 2,935,253 1,910,924 (1,024,329)
Federal grant-Gaut Improvement 0 808,342 9,068 (799,274)
Federal grant-Paul Huff 0 55,371 10,388 (44,983)
Federal grant-Adkisson Drive 0 0 256 256
Federal grant-North Property Development 0 0 36,135 36,135
Federal grant-Cares Act 0 153,630 130,536 (23,094)
' Federal grant-Cares 4 0 53,000 0 (53,000)
Federal grant-Central Avenue 0 866,863 0 (866,863)
State grant-Multi-Modal Access 0 818,462 766,302 (52,160)
State grant-Jetport runway extension 0 123,039 3,140 (119,899)
State grant-Greenway phase VI 1,670,908 861,608 0 (861,608)
State grant-Peerless and Georgetown 0 902,500 50,502 (851,998)
State grant-Community tree grant 0 3,985 3,920 (65)
State grant-LIC 0 900,007 317,607 (582,400)
State appropriation 512,851 512,851 512,851 0
Bradley County-LIC 0 0 194,734 194,734
Interest 0 0 53,380 53,380
Miscellaneous:
TML Reimbursement-vehicles 0 62,544 66,814 4,270
Sundry income 0 332,780 356,614 23,834
Total revenues $ 2,183,759 $ 9,390,235 $ 4,425,465 $ (4,964,770)
Expenditures: •
Capital outlay:
Legislative and judicial:
Capital projects $ 0 $ 20,000,000 $ 0 $ 20,000,000
WhirlpooUDowntown initiative 600,000 1,897,142 621,914 1,275,228
Human resources:
Software 60,000 60,000 0 60,000
Finance:
Capital projects 227,000 529,590 179,693 349,897
Information Technology:
Hardwaze 50,000 78,093 78,092 1
Development and engineering:
Various capital projects 0 27,062 0 27,062
Greenway Phase VI 1,670,908 861,608 0 861,608
Transportation projects-LGIP 0 23,995 21,990 2,005
Paul Huff 0 252,455 12,984 239,471
Infrasiruchu�e 0 252,934 0 252,934
25thStreetMultimodal 0 950,000 53,160 896,840
Police department:
Vehicles 0 185,431 146,351 39,080
Body Cameras 70,000 70,000 0 70,000
Motorola radios 470,000 466,457 0 466,457
- 157-
CITY OF CLEVELAND,TENNESSEE
CAPITAL IlVIPROVEMENT PROGRAM FLJND (Continued)
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES �
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Vaziance
� Budgeted Amounts Positive
Original Final Actual (Negative)
Expenditures-(Continued)
Capital outlay-(Continued)
Animal Control:
Various capital projects $ 0 $ 37,323 $ 37,323 $ 0
Fire department:
Capital projects 0 45,115 0 45,115
Equipment-radios 78,000 77,800 77,620 180
SCBA 0 453,000 453,000 0
Public works-street deparlment:
Grants 0 7,970 6,511 1,459
25th&Peerless intersection 0 327,531 , 0 327,531
Adkisson Drive widening 0 1,152,346 256 1,152,090
Multi Modal Access 0 1,410,928 777,706 633,222
LIC North on APD 40 0 2,331,256 318,225 2,013,031
Peerless extension 0 40,000 20,230 19,770
Mouse Creek intersection 0 874,137 45,425 828,712
Paul Huff&Peerless intersection 0 300,000 25,125 274,875
20th&Tasso 0 251,360 0 251,360
Central Avenue project 0 892,615 30,893 861,722
17th and 20t Street project 0 2,935,253 2,418,468 516,785
MPO:Gaut Improv 0 809,300 9,068 800,232
Parker Street sidewallcs 42,851 166,665 141,688 24,977
Paving 300,000 805,951 136,620 669,331
Improvements 0 70,373 35,316 35,057
Sidewalks 65,000 65,000 4,862 60,138
Cleveland Regional Jetport:
Hangar N14 0 206,774 206,774 0
Land easement 0 5,600 203 5,397
Runway eatension construcrion 0 113,462 3,140 110,322 '
North Properiy-construction 0 36,446 36,398 48
Pazks and recreation:
Capital projects 0 89,000 71,935 17,065
Avery Johnson Park 0 45,741 88,109 (42,368)
Candies Greenway 0 100,632 4,056 96,576
College Hill gym floor 0 149,539 55,647 93,892
Education:
Capital projects 0 102,407 102,407 0
Debt Service:
Principal retirement 0 0 466,457 (466,457)
Interest and fiscal charges 0 151,828 190,079 (38,251)
Total expenditures $ 3,633,759 $ 39,710,119 $ 6,877,725 $ 32,832,394
- 158-
CITY OF CLEVELAND,TENNESSEE
CAPITAL IlVIPROVEMENT PROGRAM FLTND (Continued)
SCHEDULE OF REVENUES,EXPENDITURES AND CHANGES
IN FUND BALANCE-BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Origi.nal Final Actual (Negative)
Excess(deficiency)of
revenues over expenditures $ (1,450,000) $ (30,319,884) $ (2,452,260) $ 27,867,624
Other financing sources(uses):
Transfers in $ 1,450,000 $ 2,044,918 $ 2,004,718 $ (40,200)
Notes issued 0 20,151,828 20,245,074 93,246
Total other financing sources(uses) $ 1,450,000 $ 22,196,746 $ 22,249,792 $ 53,046
Net change in fund balance $ 0 $ (8,123,138) $ 19,797,532 $ 27,920,670
Fundbalanceatbeginningofyeaz 7,182,635 7,182,635 7,182,635 0
Fund balance at end ofyear $ 7,182,635 $ (940,503) $ 26,980,167 $ 27,920,670
- 159-
INTERNAL SERVICE FUND
Internal Service Funds are used to account for the financing of goods or services provided
by one department or agency to other departments or agencies of the government and to
other government units, on a cost reimbursement basis.
Health Insurance Trust Fund: This fund is used to account for the medical claims and
administrative costs of the city employees.
CITY OF CLEVELAND,TENNESSEE
HEALTH INSUR.ANCE TRUST FUND
SCHEDLTLE OF REVENUES,EXPENSES AND CHANGES IN NET POSITION-
BUDGET AND ACTUAL
For the Fiscal Year Ended June 30,2022
Variance
Budgeted Amounts Positive
Original Final Actual (Negative)
Operating Revenues:
Charges for services $ 5,213,309 $ 5,213,309 $ 5,575,118 $ 361,809
Tota1 operating revenues $ 5,213,309 $ 5,213,309 $ 5,575,118 $ 361,809
Operating Expenses:
General and administrative:
Health insurance claims $ 4,139,546 $ 4,303,577 $ 2,952,495 $ 1,351,082
Administrative services 801,423 909,423 1,026,210 (116,787)
Total operati.ng expenses $ 4,940,969 $ 5,213,000 $ 3,978,705 $ 1,234,295
Operating income(loss) $ 272,340 $ 309 $ 1,596,413 $ 1,596,104
Non Operating Revenues(Expenses):
Interest income $ 1,000 $ 1,000 $ 6,352 $ 5,352
Total non operating revenues(expenses) $ 1,000 $ 1,000 $ 6,352 $ 5,352
Change in net position $ 273,340 $ 1,309 $ 1,602,765 $ 1,601,456
Total net position-beginning 913,859 913,859 913,859 0
Total net position-ending $ 1,187,199 $ 915,168 $ 2,516,624 $ 1,601,456
- 160-
CAPITAL ASSETS
CITY OF CLEVELAND,T'ENNESSEE
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
COMPARATIVE SCHEDULE BY SOURCE(1)
June 30,2022 and 2021
2022 2021
Govemmental funds capita.l assets:
Land $ 38,073,782 $ 38,073,782
Buildings 159,004,499 155,949,947
Public improvements other than buildings 28,626,067 27,096,605
Infrastructure 77,773,411 75,771,913
Fumiture,fixttues,equipment and vehicles 47,759,838 44,610,058
Total govemmental funds capital assets $ 351,237,597 $ 341,502,305
Investment in governmental funds capital assets:
Total governmental funds capital assets $ 351,237,597 $ 341,502,305
(1)This schedule presents only the capital asset balances related to governmental funds. Accordingly,the capital assets
reported in the internal service fund are excluded from the above amounts. Generally,the capital assets of internal service
funds are included as governmental activities in the statement of net assets.
- 161 -
CITY OF CLEVELAND,TENNESSEE
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE BY FUNCTION AND ACTNITY(1)
June 30,2022
Total Other
Capital Improve-
Function and Activitv Assets Land Buildings ments Infrastructure Equipment
General Govemment:
Administration and finance $ 1,071,461 $ 1,800 $ 401,565 $ 263,343 $ 0 $ 404,753
General government 3,369,255 221,845 1,555,175 410,985 0 1,181,250
Community development 1,069,457 101,746 417,664 52,566 0 497,481
Library 10,535,337 324,286 5,867,244 77,676 0 4,266,131
Total General Government $ 16,045,510 $ 649,677 $ 8,241,648 $ 804,570 $ 0 $ 6,349,615
Public Safety:
Police $ 13,099,917 $ 290,097 $ 5,210,273 $ 67,635 $ 0 $ 7,531,912
Fire 15,355,746 461,500 6,022,085 314,327 0 8,557,834
911 Center 867,618 0 867,618 0 0 0
Total Public Safety $ 29,323,281 $ 751,597 $ 12,099,976 $ 381,962 $ 0 $ 16,089,746
Public Works:
Street department $ 8,546,668 $ 591,262 $ 393,809 $ 2,191,010 $ 0 $ 5,370,587
Engineering 244,221 0 0 47,301 0 196,920
Fleet 1,602,219 108,291 1,207,137 74,216 212,575
Old City Landfill 92,500 63,500 25,000 4,000 0 0
Jetport 45,753,869 26,899,869 5,191,891 12,761,296 0 900,813
Primaryroads 11,170,880 67,965 0 0 11,102,915 0
Secondary roads 52,587,742 378,887 0 � 0 52,208,855 0
Drainage 5,396,708 12,147 0 0 5,384,561 0
Detention ponds 3,613,911 770,558 0 0 2,843,353 0
Sidewallcs 5,480,914 0 0 0 5,480,914 0
Bridges 752,813 0 0 0 752,813 0
Total Public Works $ 135,242,445 $ 28,892,479 $ 6,817,837 $ 15,077,823 $ 77,773,411 $ 6,680,895
Parks and Recreation:
Recreation office $ 4,154,966 $ 0 $ 0 $ 2,202,054 $ 0 $ 1,952,912
TinsleyPark 3,705,054 211,980 165,860 3,108,572 0 218,642
Waterville Golf Course 2,151,552 256,816 521,641 1,268,122 0 104,973
College Hill Center 1,655,268 76,890 231,658 1,187,386 0 159,334
Cleveland Community Center 846,053 47,000 421,769 248,964 0 128,320
Johnston Park 425,000 175,000' 0 250,000 0 0
Deer Park 272,642 90,000 0 175,740 0 6,902
Amold Mini Park 14,565 0 0 14,565 0 0
Mayfield Mini Park 14,000 0 0 14,000 0 0
Blythe Mini Park 20,044 9,874 0 10,170 0 0
Bower Mini Park 61,975 0 14,800 47,175 0 0
Stuart Mini Park 27,263 0 17,732 9,531 0 0
E.L.Ross Craigmile Pazk 9,880 0 0 9,880 0 0
East Cleveland Neighborhood 83,698 10,000 3,577 70,121 0 0
Greenway Project 2,963,224 0 319,839 2,446,101 0 197,284
Fletcher Park 693,024 64,373 118,973 479,730 0 29,948
lst Street Square Park 535,363 174,595 0 360,768 0 0
Soccer Complex 525,248 50,000 12,820 340,562 0 121,866
Total Pazks andRecreation $ 18,158,819 $ 1,166,528 $ 1,828,669 $ 12,243,441 $ 0 $ 2,920,181
- 162-
CITY OF CLEVELAND,TENNESSEE
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FLTNDS (Continued)
SCHEDULE BY FUNCTION AND ACTNITY(1)
June 30,2022
Total Other
Capital Improve-
Function and Activitv Assets Land Buildings ments Infrastructure Equipment
Miscellaneous Properties:
Central and Church
pazking lot $ 101,000 $ 101,000 $ 0 $ 0 $ 0 $ 0
Fourth Street
parking lot 45,500 45,500 0 0 0 0
Worth and Central
parking lot 45,000 45,000 0 0 0 0
Inman Street
pazking lot 32,500 32,500 0 0 0 0
Second-Central
parking lot 53,000 53,000 0 0 0 0
Blythe Day Care 35,136 15,000 11,336 8,800 0 0
Animal Control 384,008 0 95,301 73,147 0 215,560
Kaufiman-Second Street
parking lot 33,000 27,500 0 5,500 0 0
Hargis-First Sh�eet parking lot 33,000 27,500 0 5,500 0 0
Urban renewal lots 87,330 87,330 0 0 0 0
Hill Street building 18,976 0 1,074 17,902 0 0
Seventh and Church Street
parking lot 21,202 13,780 0 7,422 0 0
Total Miscellaneous
Properties $ 889,652 $ 448,110 $ 107,711 $ 118,271 $ 0 $ 215,560
Cleveland City Schools:
School property $ 150,233,991 $ 6,165,391 $ 129,908,658 $ 0 $ 0 $ 14,159,942
Food Service 1,343,899 0 0 0 0 1,343,899
Total City Schools $ 151,577,890 $ 6,165,391 $ 129,908,658 $ 0 $ 0 $ 15,503,841
Total Capital Assets $ 351,237,597 $ 38,073,782 $ 159,004,499 $ 28,626,067 $ 77,773,411 $ 47,759,838
(1)This schedule presents only the capital asset balances related to governmental funds. Accordingly,the capital assets reported in
intemal service funds are excluded from the above amounts. Generally,the capital assets of intemal service funds are included as
governmental activities in the statement of net assets.
- 163 -
CITY OF CLEVELAND,TENNESSEE
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FUNDS
SCHEDULE OF CHANGES BY FUNCTION AND ACTNITY(1)
For the Fiscal Year Ended June 30,2022
Beginning Ending
Function and Activitv Balance Additions Deductions Balance
General Government:
Administration and fmance $ 1,169,204 $ 5,200 $ 102,943 $ 1,071,461
General government 2,250,792 1,204,828 86,365 3,369,255
Community development 910,430 182,672 23,645 1,069,457
Library 9,988,418 551,672 4,753 10,535,337
Total General Government $ 14,318,844 $ 1,944,372 $ 217,706 $ 16,045,510
Public Safety:
Police $ 12,396,221 $ 878,505 $ 174,809 $ 13,099,917
Fire 14,831,519 719,274 195,047 15,355,746
911 Center 867,618 0 0 867,618
Total Public Safety $ 28,095,358 $ 1,597,779 $ 369,856 $ 29,323,281
Public Works:
S�eet department $ 8,483,829 $ 309,012 $ 246,173 $ 8,546,668
Engineering 244,221 0 0 244,221
Fleet 1,590,024 12,195 0 1,602,219
Old City Landfill 92,500 0 0 92,500
Jetport 45,502,225 256,044 4,400 45,753,869
Prixnary roads 11,170,880 0 0 11,170,880
Secondary roads 51,386,979 1,200,763 0 52,587,742
Drainage 5,352,972 43,736 0 5,396,708
Detention ponds 3,613,911 0 0 3,613,911
Sidewalks 4,723,915 756,999 0 5,480,914
Bridges 752,813 0 0 752,813
Total Public Works $ 132,914,269 $ 2,578,749 $ 250,573 $ 135,242,445
Parks and Recreation:
Recreation office $ 3,065,958 $ 1,220,659 $ 131,651 $ 4,154,966
Tinsley Park 3,663,084 58,896 16,926 3,705,054
Waterville Golf Course 2,201,153 0 49,601 2,151,552
College Hill Center 1,328,271 329,346 2,349 1,655,268
Cleveland Community Center 857,446 13,120 24,513 846,053
Johnston Park 425,000 0 0 425,000
Deer Park 272,642 0 0 272,642
Arnold Mini Park 14,565 0 0 14,565
Mayfield Mini Park 14,000 0 0 14,000
Blythe Mini Park 20,044 0 0 20,044
Bower Mini Park 61,975 0 0 61,975
Stuart Mini Park 27,263 0 0 27,263
E.L.Ross Craigmile Park 9,880 0 0 9,880
East Cleveland Neighborhood 83,698 0 0 83,698
Greenway Project 2,963,224 0 0 2,963,224
Fletcher Park 693,024 0 0 693,024
lst Street Square Park 535,363 0 0 535,363
Soccer Complex 525,248 0 0 525,248
Total Parks and Recreation $ 16,761,838 $ 1,622,021 $ 225,040 $ 18,158,819
- 164-
CITY OF CLEVELAND,TENNESSEE
CAPITAL ASSETS USED IN THE OPERATION OF GOVERNMENTAL FLTNDS (Continued)
SCHEDULE OF CHANGES BY FUNCTION AND ACTIVITY(1)
For the Fiscal Year Ended June 30,2022
Beginning Ending
Function and Activitv Balance Additions Deductions Balance
Miscellaneous Properties:
Central and Church parking lot $ 101,000 $ 0 $ 0 $ 101,000
Fourth Street pazking lot 45,500 0 0 45,500
Worth and Central pazking lot 45,000 0 0 45,000
Inman Street parking lot 32,500 0 0 32,500
Second-Central parking lot 53,000 0 0 53,000
Blythe Day Care 35,136 0 0 35,136
Animal Control 365,622 37,325 18,939 384,008
Kaufinan-Second Street parking lot 33,000 0 0 33,000
Hargis-First S�eet pazking lot 33,000 0 0 33,000
Urban renewal lots 87,330 0 0 87,330
Hill Street building 18,976 0 0 18,976
Seventh and Church Street parking lot 21,202 0 0 21,202
Total Miscellaneous Properties $ 871,266 $ 37,325 $ 18,939 $ 889,652
Cleveland City Schools:
School property $ 147,166,575 $ 3,482,352 $ 414,936 $ 150,233,991
Food Service 1,374,155 3,901 34,157 1,343,899
Total City Schools $ 148,540,730 $ 3,486,253 $ 449,093 $ 151,577,890
Total Capital Assets $ 341,502,305 $ 11,266,499 $ 1,531,207 $ 351,237,597
(1)This schedule presents only the capital asset balances related to governmental funds. Accordingly,the ca.pital assets
reported in intemal service funds are excluded from the above amounts. Generally,the capital assets of intemal service funds
are included as govemmental activities in the statements of net assets.
- 165 -
STATISTICAL SECTION
This part of the City of Cleveland, Tennessee's comprehensive annual financial report
presents detailed information as a context for understanding what the information in the
financial statements, note disclosures, and required supplementary information says about
the government's overall financial health.
Contents Page
Financial Trends 166
These schedules contain trend information to help the reader
understand how the government's financial performance and well-
being have changed over time.
Revenue Capacity 176
These schedules contain information to help the reader assess the
government's most significant local revenue sources, the property
tax and the local sales tax.
Debt Capacity 188
These schedules present information to help the reader assess the
affordability of the government's current levels of outstanding debt
and the government's ability to issue additional debt in the future.
Demographic and Economic Information 195
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
government's financial activities take place.
Operating Information 199
These schedules contain service and infrastructure data to help the
reader understand how the information in the government's
financial report relates to the services the government provides and
the activities it performs.
Sources:Unless otherwise noted,the information in these schedules is derived from the
comprehensive annual financial reports for the relevant year.
This page left blank intentionally.
CITY OF CLEVELAND,TENNESSEE
NET ASSETS BY COMPONENT
LAST TEN FISCAL YEARS
(accrual basis of accounting)
2013 2014 2015 2016
Governmental activities
Net investment in capital assets $ 68,705,499 $ 108,313,394 $ 115,117,684 $ 118,815,347
Restricted 4,903,327 3,627,607 4,230,289 3,960,956
Unrestricted 13,058,791 9,398,036 (6,550,745) (1,239,172)
Total governmental activities net assets $ 86,667,617 $ 121,339,037 $ 112,797,228 $ 121,537,131
Business-type activities
Net investinent in capital assets $ 161,335,056 $ 124,523,849 $ 124,243,205 $ 126,677,290
Unrestricted 3,654,232 8,413,181 (1,508,685) 2,226,781
Total business-type activities $ 164,989,288 $ 132,937,030 $ 122,734,520 $ 128,904,071
Primary government
Net investrnent in capital assets $ 230,040,555 $ 232,837,243 $ 239,360,889 $ 245,492,637
Resh�icted 4,903,327 3,627,607 4,230,289 3,960,956
Unresh�icted 16,713,023 17,811,217 (8,059,430) 987,609
Total primary govemment net assets $ 251,656,905 $ 254,276,067 $ 235,531,748 $ 250,441,202
Source: Official record of Office of City Clerk.
- 166-
Schedule 1
2017 2018 2019 2020 2021 2022
$ 119,211,701 $ 128,504,578 $ 138,614,753 $ 135,819,612 $ 150,289,044 $ 160,882,458
4,509,812 5,292,915 14,863,506 19,972,043 26,563,297 53,566,478
392,152 (22,478,971) (22,786,778) (22,493,225) (12,609,818) (10,907,416)
$ 124,113,665 $ 111,318,522 $ 130,691,481 $ 133,298,430 $ 164,242,523 $ 203,541,520
$ 132,437,432 $ 141,210,570 $ 140,264,453 $ 149,656,134 $ 155,930,891 $ 164,321,524
5,868,185 (191,774) 8,631,096 11,380,399 20,018,879 27,101,349
$ 138,305,617 $ 141,018,796 $ 148,895,549 $ 161,036,533 $ 175,949,770 $ 191,422,873
$ 251,649,133 $ 269,715,148 $ 278,879,206 $ 285,475,746 $ 306,219,935 $ 325,203,982
4,509,812 5,292,915 14,863,506 19,972,043 26,563,297 53,566,478
6,260,337 (22,670,745) (14,155,682) (11,112,826) 7,409,061 16,193,933
$ 262,419,282 $ 252,337,318 $ 279,587,030 $ 294,334,963 $ 340,192,293 $ 394,964,393
- 167-
CITY OF CLEVELAND,TENNESSEE
CHANGE IN NET POSTTION
LAST TEN FISCAL YEARS
(accrual basis of accountin�
2013 2014 2015
EXPENSES �
Govemmental activities:
General govemment $ 6,338,456 $ 3,285,177 $ 3,356,106
Development and Engineering 1,140,908 1,498,726 1,473,844
Public safety 18,702,183 19,610,293 18,688,453
Public works 9,539,339 10,767,515 11,340,866
Health and welfaze 829,343 740,903 638,456
Culture and recreation 4,734,464 5,150,586 4,397,406
Fducation 46,972,946 49,017,773 46,678,450
Interest on long-term debt 2,878,690 2,999,643 3,356,042
Total govemmental acrivities $ 91,136,329 $ 93,070,616 $ 89,929,623
Business-type activities:
Water and sewer $ 22,183,642 $ 22,606,739 $ 22,015,051
Electric 93,526,162 95,535,206 96,987,194
Stormwater management 0 0 0
Airport 573,288 0 0
Total business-type acrivities expenses $ 116,283,092 $ 118,141,945 $ 119,002,245
Total prunary govemment expenses $ 207,419,421 $ 211,212,561 $ 208,931,868
PROGRAM REVENUES
Govemmental acrivities:
Charges forseivices $ 6,394,007 $ 5,719,960 $ 5,792,117
Operating grants and contributions 42,650,493 42,755,489 45,485,420
Capital grants and contributions 1,622,538 2,805,953 1,459,698
Total govemmental activities program revenues $ 50,667,038 $ 51,281,402 $ 52,737,235
Business-type activities:
Chazges for services:
Water and sewer $ 23,006,832 $ 24,232,749 $ 25,710,183
Electric 96,146,039 98,249,509 99,094,672
Stormwater management 0 0 0
Airport 123,841 0 0
Operating grants and conh-ibutions 45,097 48,977 47,532
Capital grants and contributions 9,622,580 961,210 515,643
Total business-type activities program revenues $ 128,944,389 $ 123,492,445 $ 125,368,030
Total primary govemment program revenues $ 179,611,427 $ 174,773,847 $ 178,105,265
Net(Expense)Revenue
Govemmental activities $ (40,469,291) $ (41,789,214) $ (37,192,388)
Business-type activities 12,661,297 5,350,500 6,365,785
Total primary govemment net expense $ (27,807,994) $ (36,438,714) $ (30,826,603)
GENERAL REVENUES AND OTHER CHANGES IN NET POSITION
Govemmental activities:
Property taxes $ 16,598,001 $ 19,016,017 $ 19,653,207
Interest and penalty on taxes 232,829 215,627 217,448
In lieu oftaxes 247,400 501,661 239,618
Local sales tax 11,842,883 11,976,829 12,516,655
Wholesale beer tax 1,514,062 1,555,503 1,588,040
Gross receiptt tax 1,139,178 956,672 1,176,363
Franchise tax 874,574 933,173 989,949
State sales tax 2,857,391 2,953,870 3,130,831
Other state taxes 1,955,994 1,742,735 4,095,349
Grants and coniributions not restricted 566,435 407,799 775,098
Unrestricted investrnent eamings 79,556 79,985 96,088
Gain(loss)on sale of capital assets 49,317 42,835 650,321
Transfers 1,616,526 2,198,373 2,247,105
Total govemmental activities $ 39,574,146 $ 42,581,079 $ 47,376,072
Business-type activities:
Unrestricted investrnenteamings $ 55,945 $ 65,171 $ 82,174
Cmin(loss)on sale of capital assets 0 0 0
Transfers (1,616,526) (2,198,373) (2,247,105)
Total business-type activities $ (1,560,581) $ (2,133,202) $ (2,164,931)
Total primary govemment $ 38,013,565 $ 40,447,877 $ 45,211,141
CHANGE IN NET POSITIOIN
Govemmental activiries $ (895,145) $ 791,865 $ 10,183,684
Business-type activities 11,100,716 3,217,298 4,200,854
Total primary govemment $ 10,205,571 $ 4,009,163 $ 14,384,538
Source: Official rewrd of Office of City Clerk.
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Schedule 2
2016 2017 2018 2019 2020 2021 2022
$ 3,765,394 $ 4,442,261 $ 8,987,210 $ 4,756,220 $ 4,659,380 $ 4,475,964 $ 4,570,431
1,940,024 2,166,719 2,621,363 2,302,965 2,332,324 2,055,406 2,218,756
19,057,323 20,587,764 21,827,824 23,014,134 24,420,737 24,382,352 21,099,938
11,240,255 9,882,476 13,599,981 10,091,513 11,587,164 11,760,654 13,409,381
671,684 659,284 710,483 690,927 691,826 716,655 -
4,371,397 5,328,380 3,814,500 5,572,087 5,534,056 5,246,725 4,281,085
49,400,437 53,648,372 54,436,127 47,636,980 58,580,908 60,039,485 59,226,357
3,296,175 3,198,147 3,216,493 3,183,652 2,900,897 3,029,596 2,585,183
$ 93,742,689 $ 99,913,403 $ 109,213,981 $ 97,248,478 $ 110,707,292 $ 111,706,837 $ 107,391,131
$ 23,781,528 $ 24,601,946 $ 25,034,761 $ 26,551,551 $ 26,863,384 $ 28,485,251 $ 30,035,698
94,002,316 95,625,776 95,471,898 97,751,476 92,020,973 90,020,984 96,702,765
422,576 510,855 598,400 452,761 827,213 606,165 1,007,910
0 0 0 0 0 0 0
$ 118,206,420 $ 120,738,577 $ 121,105,059 $ 124,755,788 $ 119,711,570 $ 119,112,400 $ 127,746,373
$ 211,949,109 $ 220,651,980 $ 230,319,040 $ 222,004,266 $ 230,418,862 $ 230,819,237 $ 235,137,504
$ 5,546,286 $ 5,088,039 $ 5,577,962 $ 5,715,943 $ 6,220,987 $ 6,343,633 $ 8,402,525
47,705,172 49,701,112 52,477,210 53,644,483 54,514,548 63,396,173 68,531,470
4,452,957 1,885,608 8,548,702 2,745,004 2,571,298 8,863,133 7,120,650
$ 57,704,415 $ 56,674,759 $ 66,603,874 $ 62,105,430 $ 63,306,833 $ 78,602,939 $ 84,054,645
$ 27,147,284 $ 28,942,827 $ 28,950,628 $ 29,178,469 $ 30,978,458 $ 33,314,124 $ 35,046,595
97,005,448 101,077,357 100,914,277 103,154,714 100,343,044 100,050,298 107,708,738
865,814 1,485,629 1,502,917 1,522,529 1,532,721 1,564,682 1,575,112
0 0 0 0 0 0 0
55,537 57,620 108,040 226,316 251,568 276,966 308,074
1,494,135 828,652 648,269 619,693 1,131,949 1,735,300 1,123,570
$ 126,568,218 $ 132,392,085 $ 132,124,131 $ 134,701,721 $ 134,237,740 $ 136,941,370 $ 145,762,089
$ 184,272,633 $ 189,066,844 $ 198,728,005 $ 196,807,151 $ 197,544,573 $ 215,544,309 $ 229,816,734
$ (36,038,274) $ (43,238,644) $ (42,610,107) $ (35,143,048) $ (47,400,459) $ (33,103,898) $ (23,336,486)
8,361,798 11,653,508 11,019,072 9,945,933 14,526,170 17,828,970 18,015,716
$ (27,676,476) $ (31,585,136) $ (31,591,035) $ (25,197,115) $ (32,874,289) $ (15,274,928) $ (5,320,770)
$ 19,607,993 $ 20,024,551 $ 26,342,150 $ 26,096,750 $ 26,546,377 $ 26,167,522 $ 27,205,753
194,097 218,748 255,801 224,048 203,601 230,767 215,814
285,008 336,281 445,005 490,530 459,491 1,085,511 927,129
13,138,559 13,693,221 13,610,741 14,495,529 15,616,509 17,448,218 19,320,174
1,584,441 1,509,444 1,469,337 1,466,678 1,502,653 1,553,649 1,539,026
1,244,796 1,315,875 1,323,129 1,353,244 1,426,622 1,617,969 1,811,164
904,420 879,433 925,773 903,349 881,325 901,996 1,038,768
3,342,791 3,424,704 3,580,003 3,714,029 3,816,634 4,441,358 5,407,704
1,638,355 1,385,722 1,616,480 1,577,116 1,312,117 1,364,522 1,288,149
394,752 494,787 394,864 435,038 500,455 808,113 731,695
131,389 208,210 539,780 987,484 615,589 204,974 245,974
14,600 (113,458) 19,814 52,875 112,836 (57,393) -
2,322,340 2,437,660 2,641,293 2,719,337 2,864,395 2,973,022 2,904,133
$ 44,803,541 $ 45,815,178 $ 53,164,170 $ 54,516,007 $ 55,858,604 $ 58,740,228 $ 62,635,483
$ 104,729 $ 185,698 $ 399,322 $ 650,157 $ 479,209 $ 57,289 $ 129,376
0 0 0 0 0 0 232,144
(2,322,340) (2,437,660) (2,641,293) (2,719,337) (2,864,395) (2,973,022) (2,904,133)
$ (2,217,611) $ (2,251,962) $ (2,241,971) $ (2,069,180) $ (2,385,186) $ (2,915,733) $ (2,542,613)
$ 42,585,930 $ 43,563,216 $ 50,922,199 $ 52,446,827 $ 53,473,418 $ 55,824,495 $ 60,092,870
$ 8,765,267 $ 2,576,534 $ 10,554,063 $ 19,372,959 $ 8,458,145 $ 25,636,330 $ 39,298,997
6,144,187 9>401,546 8,777,101 7,876,753 12,140,984 14,913,237 15,473,103
$ 14,909,454 $ 11,978,080 $ 19,331,164 $ 27,249,712 $ 20,599,129 $ 40,549,567 $ 54,772,100
-169-
CITY OF CLEVELAND,TENNESSEE
PROGRAM REVENUE BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
(accrual basis of accountin�
2013 2014 2015 2016
Function/Program �
Governmental acrivities:
General government $ 134,104 $ 122,688 $ 167,161 $ 368,176
Development and Engineering 1,509,789 993,896 624,031 743,144
Public safety 2,526,039 1,094,936 1,212,259 1,183,264
Publicworks 4,909,092 6,529,526 6,087,104 8,832,654
Health and welfare 428,573 226,117 47,810 36,540
Culture and recreation 933,323 1,139,580 1,178,229 1,158,832
Education 40,226,118 41,174,659 43,450,641 45,381,805
Subtotal governmental activities $ 50,667,038 $ 51,281,402 $ 52,767,235 $ 57,704,415
Business-type activities:
Water and sewer $ 23,149,324 $ 25,045,728 $ 26,043,419 $ 28,337,385
Electric 96,521,141 98,446,717 99,324,611 97,364,119
Stormwater management 0 0 0 866,714
Airport 9,273,924 0 0 0
Subtotal business-type activities $ 128,944,389 $ 123,492,445 $ 125,368,030 $ 126,568,218
Total primary government $ 179,611,427 $ 174,773,847 $ 178,135,265 $ 184;272,633
Source: Official record of Office of City Clerk.
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Schedule 3
2017 2018 2019 2020 2021 2022
$ 454,229 $ 398,678 $ 540,216 $ 806,993 $ 1,082,383 $ 5,619,232
619,475 1,127,552 1,070,335 1,232,575 1,289,669 1,825,201
1,579,472 1,378,931 1,298,804 1,133,704 1,863,228 1,739,333
5,494,157 8,074,094 5,656,523 7,147,789 7,908,758 10,326,443
47,057 61,628 51,578 44,015 37,689 0
1,052,964 1,467,632 1,145,555 1,160,288 909,872 1,182,480
47,427,405 54,095,359 52,342,419 51,781,469 65,511,340 63,361,956
$ 56,674,759 $ 66,603,874 $ 62,105,430 $ 63,306,833 $ 78,602,939 $ 84,054,645
$ 29,435,064 $ 29,458,233 $ 29,526,908 $ 31,999,273 $ 34,646,551 $ 36,008,191
101,465,440 101,162,981 103,652,284 100,700,934 100,730,137 108,178,786
1,491,581 1,502,917 1,522,529 1,537,533 1,564,682 1,575,112
0 0 0 0 0 0
$ 132,392,085 $ 132,124,131 $ 134,701,721 $ 134,237,740 $ 136,941,370 $ 145,762,089
$ 189,066,844 $ 198,728,005 $ 196,807,151 $ 197,544,573 $ 215,544,309 $ 229,816,734
- 171 -
CITY OF CLEVELAND,TENNESSEE
FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accountin�
2013 2014 2015 2016
General Fund
Nonspendable $ 4,079 $ 47,629 $ 53,174 $ 41,762
Restricted 0 0 26,897 5,148
Assigned 0 10,666,100 5,878,509 0
Unassigned 12,388,007 2,098,326 3,766,227 10,800,152
Total general fund $ 12,392,086 $ 12,812,055 $ 9,724,807 $ 10,847,062
All Other Govemmental Funds:
Nonspendable $ 473,636 $ 473,636 $ 473,636 $ 673,509
Restricted 3,101,853 3,153,971 3,710,430 3,482,172
Comm.itted 728,768 494,210 614,333 699,329
Assigned 10,357,450 8,854,163 12,795,459 15,153,991
Total all other governmental funds $ 14,661,707 $ 12,975,980 $ 17,593,858 $ 20,009,001
Source: Official record of Office of City Clerk.
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Schedule 4
2017 2018 2019 2020 2021 2022
$ 0 $ 242,025 $ 230,996 $ 233,632 $ 252,419 $ 409,190
0 0 9,200 9,200 8,950 9,475
0 0 0 0 0 0
11,548,699 13,995,070 16,638,164 20,609,141 27,227,900 33,397,184
$ 11,548,699 $ 14,237,095 $ 16,878,360 $ 20,851,973 $ 27,489,269 $ 33,815,849
$ 760,148 $ 515,305 $ 497,121 $ 518,333 $ 514,208 $ 513,658
4,036,176 4,522,253 12,032,694 12,651,616 20,928,362 44,233,738
740,978 913,328 784,396 1,143,907 1,262,417 1,813,943
16,250,478 17,890,590 12,445,305 13,271,819 15,336,314 18,572,428
$ 21,787,780 $ 23,841,476 $ 25,759,516 $ 27,585,675 $ 38,041,301 $ 65,133,767
- 173 -
CITY OF CLEVELAND,TENNESSEE
CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modified accrual basis of accountin�
2013 2014 2015 2016
REVENUES
Taxes $ 34,059,819 $ 35,733,289 $ 36,910,848 $ 37,144,740
Licensesandpermits 432,178 353,841 492,000 490,234
Intergovernmental 49,121,532 50,130,677 53,062,532 57,391,236
Fines and forfeitures 548,657 537,317 665,896 565,843
Charges for services 5,412,247 4,832,380 4,617,463 4,442,072
Interest 79,614 82,638 96,088 137,225
Miscellaneous 748,627 698,215 2,202,082 862,571
Tota.l Revenues $ 90,402,674 $ 92,368,357 $ 98,046,909 $ 101,033,921
EXPENDITURES
General government $ 2,286,876 $ 2,436,907 $ 2,602,422 $ 3,084,380
Development and Engineering 926,915 1,346,723 1,421,401 1,847,168
Public safety 16,364,461 16,616,921 16,976,679 17,587,413
Public works 7,917,343 8,689,791 8,676,635 8,460,640
Health and welfare 654,628 566,625 483,389 501,236
Culture and recreation 3,864,417 4,077,475 4,164,402 4,028,549
Education 44,673,856 46,062,827 46,715,950 48,423,074
Appropriations 1,074,137 1,185,501 1,091,983 1,098,651
Capital outlay 12,573,516 8,762,567 10,348,141 14,401,524
Debt service:
Principal 2,691,153 2,699,740 4,040,333 4,164,233
Interest 2,856,470 3,337,925 2,384,230 2,340,075
Total Expenditures $ 95,883,772 $ 95,783,002 $ 98,905,565 $ 105,936,943
Excess ofrevenues over(under)expenditures $ (5,481,098) $ (3,414,645) $ (858,656) $ (4,903,022)
OTHER FINANCING
SOURCES(USES)
Transfers in $ 14,716,372 $ 15,329,355 $ 21,688,975 $ 15,751,495
Transfers out (13,099,846) (13,130,982) (19,441,870) (13,429,155)
Notes issued 5,260,075 4,600,000 0 6,040,200
Bonds issued 0 0 0 0
Leases issued 0 127,220 142,181 0
Refunding bonds issued 0 25,306,480 0 13,057,880
Premium on bonds issued 0 0 0 0
Payment to refunding bond escrow agent 0 (25,173,537) 0 (12,980,000)
Total other financing
sources(uses) $ 6,876,601 $ 7,058,536 $ 2,389,286 $ 8,440,420
Net change in fund balances $ 1,395,503 $ 3,643,891 $ 1,530,630 $ 3,537,398
Debt service as a percent of
noncapital expenditures 6.43% 6.88% 7.27% 7.02%
Source: Official record of Office of City Clerk.
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Schedule 5
2017 2018 2019 2020 2021 2022
$ 37,905,053 $ 44,169,660 $ 45,073,641 $ 46,522,610 $ 49,353,887 $ 52,067,895
628,772 712,300 735,474 1,192,696 1,409,179 1,634,572
56,284,038 65,580,623 61,304,401 61,846,216 77,568,836 81,308,390
527,112 636,898 609,350 541,312 446,724 497,424
3,949,204 4,228,762 4,357,213 4,479,831 4,480,063 6,258,671
208,210 539,781 987,484 618,845 204,973 245,975
903,685 797,077 622,151 879,473 1,439,883 844,518
$ 100,406,074 $ 116,665,101 $ 113,689,714 $ 116,080,983 $ 134,903,545 $ 142,857,445
$ 3,179,666 $ 3,431,332 $ 3,936,786 $ 4,086,659 $ 3,916,936 $ 4,551,788
1,839,944 1,664,882 1,778,770 1,693,780 2,005,510 2,374,078
17,973,900 18,606,166 20,420,104 20,899,995 21,501,020 23,586,418
7,633,818 8,310,518 8,985,878 8,841,930 8,972,849 11,436,378
521,479 542,897 518,977 523,006 528,060 0
4,269,135 4,342,420 4,486,157 4,325,735 4,007,781 3,778,649
51,046,808 53,540,925 55,004,608 55,193,503 61,870,697 62,465,575
1,192,403 1,304,181 1,332,3 64 1,306,305 1,33 8,092 1,377,407
9,035,158 29,336,764 16,892,485 9,018,761 9,398,114 14,125,820
4,514,324 5,106,995 6,048,024 5,180,065 5,370,553 6,268,624
2,228,124 2,246,893 3,231,706 3,276,477 3,554,353 3,110,678
$ 103,434,759 $ 128,433,973 $ 122,635,859 $ 114,346,216 $ 122,463,965 $ 133,075,415
$ (3,028,685) $ (11,768,872) $ (8,946,145) $ 1,734,767 $ 12,439,580 $ 9,782,030
$ 16,450,779 $ 21,172,739 $ 19,927,702 $ 17,964,749 $ 18,584,223 $ 20,160,116
(14,013,119) (18,531,446) (17,208,365) (15,100,354) (16,061,201) (17,255,983)
2,628,550 5,408,580 0 1,105,731 1,514,178 455,575
0 0 9,885,000 0 0 19,220,000
442,891 8,222,294 69,475 0 0 32,234
0 0 34,780,000 0 27,450,000 0
0 0 6,161,337 0 3,913,381 1,025,074
0 0 (40,109,699) 0 (30,747,239) 0
$ 5,509,101 $ 16,272,167 $ 13,505,450 $ 3,970,126 $ 4,653,342 $ 23,637,016
$ 2,480,416 $ 4,503,295 $ 4,559,305 $ 5,704,893 $ 17,092,922 $ 33,419,046
7.07% 6.92% 9.67% 7.89% 8.21% 7.91%
- 175-
CITY OF CLEVELAND,TENNESSEE Schedule 6
TAX REVENUES BY SOURCE,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(modifted accrual basis of accountin�
Fiscal Interest& Local Wholesale Gross
Yeaz Property Penalty In-lieu Sales Beer Receipts Franchise Total
2013 $ 16,628,885 $ 232,828 $ 247,400 $ 13,422,892 $ 1,514,062 $ 1,139,178 $ 874,574 $ 34,059,819
2014 19,024,749 215,627 501,661 12,545,904 1,555,503 956,672 933,173 35,733,289
2015 19,613,707 217,448 239,618 13,085,724 1,588,040 1,176,363 989,948 36,910,848
2016 19,609,561 194,097 285,008 13,322,417 1,584,441 1,244,796 904,420 37,144,740
2017 19,952,051 218,748 336,281 13,693,221 1,509,444 1,315,875 879,433 37,905,053
2018 26,139,874 255,801 445,005 13,610,741 1,469,337 1,323,129 925,773 44,169,660
2019 26,140,263 224,048 490,530 14,495,529 1,466,678 1,353,244 903,349 45,073,641
2020 26,432,409 203,600 459,491 15,616,509 1,502,653 1,426,622 881,326 46,522,610
2021 26,515,776 230,767 1,085,511 17,448,219 1,553,649 1,617,969 901,996 49,353,887
2022 27,215,818 215,814 927,129 19,320,174 1,539,027 1,811,165 1,038,768 52,067,895
Change
2013-2022 63.7% -73% 274.7% 43.9% 1.6% 59.0% 18.8% 52.9%
Source: Official record of Office of City Clerk.
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CITY OF CLEVELAND,TENNESSEE
ASSESSED AND ESTIMATED ACTUAL VALUE OF REAL TAXABLE PROPERTY
LAST TEN FISCAL YEARS
Commercial
Fiscal Residential Industrial Personal
Year Properiy Property Property
2013 $ 410,787,511 $ 522,433,859 $ 168,476,998
2014 400,535,764 488,849,475 164,659,894
2015 404,345,830 510,647,222 171,538,179
2016 412,602,974 507,098,128 166,516,773
2017 419,022,912 518,576,938 173,731,683
2018 460,865,137 602,825,863 192,128,839
2019 473,282,934 594,411,038 187,980,925
2020 475,674,645 605,106,904 189,105,258
2021 485,125,037 610,437,320 156,231,244
2022 648,040,849 714,464,947 204,322,891
Source: Bradley County Assessor of Property.
(1) The State of Tennessee,Division of Property Assessment conducted a comprehensive reappraisal for
tax year 2013,which is reflected in the FY 2014 financial statements. In tax year 2017,the State conducted a
comprehensive reappraisal which is reflected in the FY 2018 financial statements. In tax year 2021,the State
conducted a comprehensive reappraisal which is reflected in the FY 2022 financial statements.
(2) Property in Bradley County is reassessed once every four yeazs on average. The county assesses properiy
at approximately 40 percent of achial value for commercial and industrial property and 25 percent for
residential properiy. Estimated actual taxable value is calculated by dividing taxable assessed value by
those percentages. Tax rates are per$100 of assessed value.
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Schedule 7
Total Estimated Taxable Assessed
Total Taxable Direct Actual Value as a
Public Assessed Tax Taxable Percentage of
Utilities Value Rate Value Actual Taxable Value
$ 23,526,358 $ 1,125,224,726 $ 1.4904 $ 3,568,066,432 31.5 %
22,049,469 1,076,094,602 1.7655 3,426,781,400 31.4
22,909,126 1,109,440,357 1.7655 3,521,535,271 31.5
22,751,495 1,108,969,370 1.7655 3,528,569,562 31.4
21,491,799 1,132,823,332 1.7655 3,603,931,085 31.4
20,792,525 1,276,612,364 2.0600 4,041,544,754 31.6
20,250,570 1,275,925,467 2.0600 4,056,388,839 31.4
18,239,633 1,288,126,440 2.0600 4,091,415,783 31.5
19,508,716 1,271,302,317 2.0600 4,040,136,051 31.5
24,114,816 1,590,943,503 1.7130 5,119,689,107 31.0
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CITY OF CLEVELAND,TENNESSEE
DIRECT AND OVERLAPPING PROPERTY TAX RATES
LAST TEN FISCAL YEARS
City Overlapping Rates-Bradley County
Fiscal Direct General Public Pike County City
Year Rate Fund Library Road Schools Schools
2013 $ 1.4904 $ 0.5269 $ 0.0282 $ 0.1287 $ 0.5734 $ 0.2859
2014 1.7655 0.5404 0.0289 0.1320 0.5878 0.2935
2015 1.7655 0.5349 0.0277 0.1276 0.5624 0.2985
2016 1.7655 0.5349 0.0277 0.1276 0.5624 0.2985
2017 1.7655 0.5339 0.0250 0.1244 0.5533 0.2941
2018 2.0600 0.4298 0.0228 0.1135 0.4964 0.2774
2019 2.0600 0.4993 0.0278 0.1135 0.4994 0.2744
2020 2.0600 0.4993 0.0278 0.1135 0.4994 0.2744
2021 2.0600 0.4993 0.0278 0.1135 0.4986 0.2752
2022 1.7130 0.4100 0.0223 0.0925 0.3976 0.2273
Source:Bradley County Assessor of Property and Office of the City Clerk.
Note: The Ciiy's basic property tax rate may be increased only by a majority vote of the Cleveland
City Council.
*Overlapping rates are those of local and couniy governments that apply to property owners within
the City of Cleveland. The combined tax rate is charged to all Cleveland property owners.
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Schedule 8
Overlappittg Ra.tes-Bradley County-Continued Total
Education Total Direct
Debt Capital Capital Community Bradley and
Service Projects Projects Development County Overlapping Rate
$ 0.2297 $ - $ 0.0017 $ 0.0509 $ 1.8254 $ 33158
0.2356 - 0.0017 0.0522 1.8721 3.6376
0.2674 - 0.0016 0.0520 1.8721 3.6376
0.2674 - 0.0016 0.0520 1.8721 3.6376
0.2414 0.0414 - 0.0580 1.8715 3.6370
0.3449 0.0236 - - 1.7084 3.7684
0.3199 0.0478 - - 1.7821 3.8421
03199 0.0478 - - 1.7821 3.8421
03199 0.0478 - - 1.7821 3.8421
0.2547 0.0348 - - 1.4392 3.1522
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CITY OF CLEVELAND,TENNESSEE Schedule 9
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEA.R AND NINE YEARS AGO
2021 2012
Percentage Percentage
Taxable of Total Taxable of Total
Assessed Assessed Assessed Assessed
Tax�aver Value Rank Valuation Value Rank Valuation
Mars Snackfoods $ 40,558,738 1 2.59% $ 41,478,778 1 3.76%
Cleveland Tennessee Hospital 40,210,610 2 2.57 37,786,424 2 3.43
Whirlpool 31,499,945 3 2.01 - - -
Life Care Centers of A.merica 27,656,405 4 1.77 16,595,126 4 1.51
Bayer Healthcare(Merck) 26,213,105 5 1.67 13,449,705 5 1.22
Duracell Company 24,043,380 6 1.53 20,304,312 3 1.84
Peyton's Southeastern 11,740,490 7 0.75 10,466,632 6 0.95
Alvin Calhoun 11,193,325 8 0.71 - - -
Pinnacle Comer at Paul Huff 10,389,990 9 0.67 - - -
Retreat at Spring Creek 10,357,690 10 0.66 - - -
Walmart - - - 9,771,458 7 0.89
Southeastem Container - - - 8,931,135 8 0.81
Johnston Coca-Cola - - - 8,389,446 9 0.76
Bellsouth - - - 7,645,558 10 0.69
Totals $ 233,863,678 14.93% $ 174,818,574 15.86%
Source:Bradley County Assessor of Property and Office of the City Clerk.
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CITY OF CLEVELAND,TENNESSEE Schedule 10
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
Fiscal Collected within the
Year Taxes Levied Fiscal Year of the Levy Collections Total Collections to Date
Ended forthe Percentage in Subsequent Percentage
June 30, Fiscal Year Amount of Levy Years Amount of Levy
2013 $ 16,699,031 $ 15,612,473 93.5 % $ 1,041,957 $ 16,654,430 99.7 %
2014 18,859,181 17,898,630 94.9 925,747 18,824,377 99.8
2015 19,550,308 18,561,193 94.9 933,117 19,494,310 99.7
2016 19,557,553 18,745,766 95.8 � 763,313 19,509,079 99.8
2017 20,008,944 18,941,986 94.7 1,013,323 19,955,309 99.7
2018 26,305,375 25,026,206 95.1 1,157,249 26,183,455 99.5
2019 26,471,584 25,305,334 95.6 1,019,998 26,325,332 99.4
2020 26,495,529 25,317,547 95.6 1,031,013 26,348,560 99.4
2021 26,227,137 25,401,537 96.9 552,783 25,954,320 99.0
2022 27,267,295 26,454,093 97.0 0 26,454,093 97.0
Source: Official records of Office of City Clerk.
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CITY OF CLEVELAND,TENNESSEE
LOCAL TAXABLE SALES BY CATEGORY
LAST TEN CALENDAR YEARS
2012 2013 2014 2015
Apparel Stores $ 24,874,164 $ 25,648,895 $ 26,695,892 $ 28,868,016
General Merchandise Stores 220,486,064 220,277,745 222,347,406 233,711,647
Food Stores 93,245,397 95,135,145 106,471,779 112,096,356
Eating and Drinking Places 136,648,212 138,642,092 147,161,813 158,677,432
Furniture Stores 17,588,750 17,814,109 17,743,880 16,312,162
BuildingMaterials 78,397,949 76,136,640 72,538,049 60,732,654
MV Dealers and Service Stations 71,337,280 74,355,981 83,823,948 96,437,981
OtherRetail 61,405,593 63,159,468 65,775,334 69,919,188
All Other Outlets 139,311,618 141,967,597 152,692,339 164,536,138
Total $ 843,295,027 $ 853,137,672 $ 895,250,440 $ 941,291,574
City direct sales tax rate 2.75% 2.75% 2.75% 2.75%
Source:Tennessee Deparhnent of Revenue,Research Division.
Note: Figures subject to revision due to amended taxpayer returns.
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Schedule 11
2016 2017 2018 2019 2020 2021
$ 28,132,195 $ 28,076,379 $ 29,248,857 $ 30,510,189 $ 28,362,200 $ 39,564,854
234,275,628 235,769,895 240,627,860 244,753,609 252,408,243 263,876,515
113,083,863 119,118,225 128,260,231 131,837,852 150,853,969 148,505,141
160,746,625 166,258,406 172,323,174 185,363,931 182,039,198 217,511,498
16,227,883 20,755,916 21,997,547 21,545,685 23,250,965 32,459,845
84,841,122 97,243,420 98,552,022 102,978,309 127,044,826 142,584,470
101,579,505 98,430,037 102,340,354 109,432,087 120,559,750 131,334,048
70,057,002 67,411,830 64,417,467 71,848,990 84,686,141 97,884,669
158,214,097 160,771,137 168,767,452 179,537,042 181,624,920 208,236,421
$ 967,157,920 $ 993,835,245 $ 1,026,534,964 $ 1,077,807,694 $ 1,150,830,212 $ 1,281,957,461
2.75% 2.75% 2.75% 2.75% 2.75% 2.75%
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CITY OF CLEVELAND,TENNESSEE Schedule 12
DIRECT AND OVERLAPPING SALES TAX RATES
LAST TEN FISCAL YEARS
City of
Cleveland
Fiscal and Bradley
Year County Rate
2013 2.75 %
2014 2.75
2015 2.75
2016 2.75
2017 2.75
2018 2.75
2019 2.75
2020 2.75
2021 2.75
2022 2.75
Source: Official records of Office of City Clerk.
Note: The maximum local sales tax rate allowed by Tennessee State law is 2.75%.
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CITY OF CLEVELAND,TENNESSEE �
LOCAL SALES TAX REVENUE BY INDUSTRY
FISCAL YEARS 2013 AND 2022
Fiscal Year 2013
Number Percentage Tax Percentage
of Filers of Total Liability of Total
1 Retail Trade 836 57.89 % $ 19,314,497 83.26 %
2 Services 339 23.48 1,837,733 7.92
3 Manufactiu�ing 90 6.23 611,190 2.63
4 Wholesale Trade 77 5.33 801,320 3.45
5 Construction 12 0.83 11,415 0.05
6 Finance Insurance Real Estate 26 1.80 38,392 0.17
7 Transportation and Utilities 11 0.76 149,723 0.65
8 Agriculture 9 0.62 10,314 0.04
9 Other,Non Classified 44 3.05 422,724 1.82
Total 1,444 100.00 % $ 23,197,308 100.00 °/a
Source:Tennessee Department of Revenue,Research Division.
Notes:
1. Figures subject to revision due to amended taxpayer retums.
2. Figures represent local sales tax collected by merchants during the period,not disbursements from the Depar�nent
of Revenue. Thus,amounts presented above do not match to amounts reflected within the financial report.
3. Does not include Cleveland's share of county clerk or out-of-state taxpayer amounts.
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Schedule 13
Fiscal Year 2022
Number Percentage Tax Percentage
of Filers of Total Liability of Total
678 49.17 % $ 30,131,306 83.68 %
313 22.70 2,713,553 7.54
91 6.60 563,771 1.57
73 5.29 1,257,070 3.49
23 1.67 137,073 038
22 1.60 30,025 0.08
23 1.67 530,001 1.47
8 0.58 23,177 0.06
� 148 10.73 620,789 1.72
1,379 100.00 % $ 36,006,765 100.00 %
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CITY OF CLEVELAND,TENNESSEE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
General
General Obligation
Fiscal Obligation Refunding
Year Bonds Bonds Notes Leases
2013 $ 5,250,000 $ 31,737,203 $ 33,953,841 $ 653,351
2014 5,075,000 55,369,755 17,975,620 587,468
2015 4,825,000 52,879,673 16,897,282 488,654
2016 0 54,915,950 21,867,578 241,845
2017 0 51,933,508 23,141,751 488,149
2018 0 48,854,946 26,693,400 8,519,859
2019 9,974,170 49,286,033 21,253,921 8,103,790
2020 9,569,815 46,190,431 20,755,139 7,633,437
2021 9,180,658 68,485,493 3,018,878 0
2022 29,019,865 63,462,815 2,513,913 1,106,605
Source: Official record of Office of City Clerk.
Source: Percentage of Personal Income and Per Capita da.ta from Schedule 19.
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Schedule 14
Business-type Activities
Total Percentage
Revenue Primary of Personal Per
Bonds Notes Leases Government Income Capita
$ 54,251,865 $ 4,903,981 $ 0 $ 130,750,241 3.15 % $ 3,057
51,254,670 5,384,687 0 135,647,200 339 3,141
47,297,712 14,925,753 0 137,314,074 335 3,180
43,399,301 23,383,573 0 143,808,247 3.05 3,273
39,282,580 26,835,112 0 141,681,100 3.18 3,147
35,210,501 28,376,767 0 147,655,473 3.15 3,175
37,734,430 33,912,191 0 160,264,535 2.96 3,378
34,148,439 33,348,101 0 151,645,362 3.28 3,047
47,413,479 24,747,236 0 152,845,744 3.44 2,907
45,720,199 29,226,717 32,086 171,082,200 3.40 2,907
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CITY OF CLEVELAND,TENNESSEE Schedule 15
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
General Percentage of
Obligation Actual Actual taxable Debt
Fiscal Bonds Taxable Value Value of Per
Year Outstanding of Property Population Property Capita
2012 $ 38,925,542 $ 3,526,518,432 41,723 1.1 % $ 933
2013 36,987,203 3,568,066,432 42,386 1.0 873
2014 60,444,755 3,426,781,400 42,774 1.8 1,413
2015 57,704,673 3,521,535,271 43,182 1.6 1,336
2016 54,915,950 3,528,569,562 43,898 1.6 1,251
2017 51,933,508 3,603,931,085 44,337 1.4 1,171
2018 48,854,946 4,041,544,754 44,780 1.2 1,091
2019 59,260,203 4,056,388,839 44,974 1.4 1,318
2020 55,760,246 4,091,415,783 45,504 1.3 1,225
2021 77,666,151 4,040,136,051 47,356 1.9 1,640
2022 92,482,680 5,119,689,107 47,955 1.8 1,928
Source: Official records of Office of City Clerk.
Note-Details regarding the City's outstanding debt can be found in the notes to the financial statements.
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CITY OF CLEVELAND,TENNESSEE Schedule 16
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
June 30,2022
Percentage
of Debt City's
Net Debt Applicable Share
Outstanding to the City of Debt
City of Cleveland direct debt $ 96,103,198 100.00% $ 96,103,198
Bradley County,Tennessee 72,246,800 52.27% 37,763,402
Total direct and overlapping debt $ 168,349,998 $ 133,866,600
Source: Official records of Office of City Clerk and Bradley County Assessor of Property.
Note- Overlapping governments are those that coincide,at least in part,with the geographic
boundaries of the City. This schedule estimates the portion of the outstanding debt of
those overlapping governments that is bome by the residents and businesses of the City
of Cleveland. This process recognizes that,when considering the City's ability to issue
and repay long-term debt,the entire debt burden bome by the residents and businesses
should be taken into account.
For debt repaid with property taxes,the percentage of overlapping debt applicable is
estimated using taxable assessed property values. Applicable percentages were estimated
by dete�in;ng the portion of another governmental unit's taxable assessed value that is
within the City's boundaries and dividing it by each unit's total taxable assessed value.
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CITY OF CLEVELAND,TENNESSEE
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Debt limit $ 112,073,394 $ 107,609,460 $ 108,653,123 $ 108,621,788
Tota.l net debt applicable to limit 69,103,328 75,438,027 71,174,432 72,563,860
Legal debt margin $ 42,970,066 $ 32,171,433 $ 37,478,691 $ 36,057,928
Tota1 net debt applicable to limit
as a percentage of debt limit 61.66% 70.10% 65.51% 66.80%
Note-Under Tennessee State law,the City's outstanding general obligation debt is not limited. However,
the City has established a fmancial policy limit of no more than 10 percent of assessed property value.
Source: Official record of Office of City Clerk.
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Schedule 17
2017 2018 2019 2020 2021 2022
$ 113,282,233 $ 125,581,984 $ 125,567,490 $ 126,988,681 $ 125,279,360 $ 156,689,285
70,824,771 78,741,687 75,737,287 72,017,242 65,708,999 80,059,921
$ 42,457,462 $ 46,840,297 $ 49,830,203 $ 54,971,439 $ 59,570,361 $ 76,629,364
62.52% 62.70% 60.32% 56.71% 52.45% 51.09%
Legal Debt Margin Calculation for Fiscal Year 2022
. Total assessed value $ 1,566,892,850
Legal debt margin:
Debt limitation- 10%of total assessed value
as adopted by re'solution $ 156,689,285
Debt applicable to limit:
Total bonded debt $ 156,863,321
Less:Revenue bonds 70,143,803
Amount available for repayment
of general obligation bonds 6,659,597
Total debt applicable to limit 80,059,921
Legal debt margin $ 76,629,364
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CITY OF CLEVELAND,TENNESSEE Schedule 18
REVENUE BOND COVERAGE
WATER AND WASTEWATER BONDS
LAST TEN FISCAL YEARS
Net Revenue
Direct Available
Fiscal Gross Operating for Debt Debt Service Requirements
Year (1) Revenue (2)Expenses Service Principal (3)Interest Total Coverage
2013 $ 23,149,324 $ 15,292,780 $ 7,856,544 $ 3,121,629 $ 1,681,401 $ 4,803,030 1.64
2014 25,045,728 15,695,140 9,350,588 3,182,356 1,700,224 4,882,580 1.92
2015 26,043,419 15,044,789 10,998,630 3,345,599 1,534,811 4,880,410 2.25
2016 28,337,385 16,622,259 11,715,126 3,555,604 1,554,694 5,110,298 2.29
2017 29,435,064 17,383,154 12,051,910 3,921,451 1,433,130 5,354,581 2.25
2018 29,458,233 17,764,229 11,694,004 4,095,825 1,407,090 5,502,915 2.13
2019 29,526,908 18,602,302 10,924,606 3,505,000 1,545,084 5,050,084 2.16
2020 31,999,273 18,985,805 13,013,468 3,898,145 1,522,402 5,420,547 2.40
2021 34,646,551 20,350,824 14,295,727 4,687,336 1,642,058 6,329,394 2.26
2022 36,008,191 21,638,597 14,369,594 4,244,455 1,525,684 5,770,139 2.49
Source: From official records of Office of City Clerk.
(1) All revenues except interest income and gain on sale of assets
(2) All expenses except depreciation,amortization and interest
(3) Interest expense for year as reflected in audit report
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CITY OF CLEVELAND,TENNESSEE
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Per
Capita
Calendar Personal Personal Median
Year Population Income Income Age
2012 42,386 $ 4,031,075 $ 34,246 38
2013 42,774 4,123,064 34,783 38
2014 43,182 4,601,591 38,441 34
2015 43,898 4,392,733 36,344 35
2016 44,337 4,502,889 37,134 34
2017 44,780 4,650,000 38,016 34
2018 44,974 4,743,600 38,371 35
2019 45,504 4,977,562 39,839 35
2020 47,356 5,257,348 41,756 35
2021 47,955 5,808,942 45,404 38
Sources: Population and educational attainment data from U.S.Census.
Median age from U.S.Census data
Personal income and Per Capita income from U.S.Bureau of Economic Analysis.
Unemployment data from U.S.Bureau of Labor Statistics.
School enrollment from Depariment of Education
Personal income,per capita income,median age and unemployment rate data are for
Bradley County.
- 195 -
Schedule 19
Annual
Percent Percent Average
High School Bachelor's Adjusted
graduate or degree School Unemployment
higher or higher Enrollment Rate(%)
83 % 24 % 5,423 7.7 %
84 24 5,440 7.5
85 23 5,575 6.5
85 23 5,302 4.8
83 24 5,63 8 2.8
83 24 5,747 3.8
84 24 5,528 3.4
84 25 5,814 5.1
83 25 5,538 4.6
83 25 5,531 4.1
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CITY OF CLEVELAND,TENNESSEE
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2022
Percentage of
Total Labor Force
Employer Employees Rank Bradley County
WhirlpooUMaytag 1,600 1 3.10 %
Bradley County Schools 1,160 2 2.25
Peyton's Southeastern 1,157 3 2.24
Tennova 1,100 4 2.13
Jackson Furniture Industries 894 5 1.73
Amazon 790 6 1.53
Wacker Polysilicon 772 7 1.50
Cleveland City Schools 746 8 1.45
Wal-Mart 640 9 1.24
Bradley County Govemment 620 10 1.20
Mars Chocolate - - -
Lee University - - -
City Government - - -
9,479 1837 %
Total
Source: Cleveland/Bradley Chamber of Commerce and Tennessee Depariment of Labor&
Workforce Development
This schedule should include the ten largest employers,unless fewer are required to reach
50%of total employment.
- 197-
Schedule 20
2013
Percentage of
Total Labor Force
Employees Rank Bradley County
1,503 1 3.00 %
1,200 3 2.40
950 5 1.90
1,147 4 2.29
600 9 1.20
640 7 1.28
620 8 1.24
577 10 1.15
815 6 1.63
1,202 2 2.40
9,254 18.49 %
- 198-
CITY OF CLEVELAND,TENNESSEE Schedule 21
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Full-time Equivalent Employees as of June 30
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Pro�
General govemment
City Council and legislative 1 1 1 1 1 1 1 1 1 0
Administration and finance 14 14 14 23 24 25 26 25 20 21
Community development 8 14 14 15 15 15 15 17 21 23
Cleveland Regional Jetport 0 1 1 1 1 1 1 1 1 1
Police
Officers 85 91 91 92 91 97 97 101 105 104
Civilians 11 12 12 12 12 12 12 12 12 13
Fire
Firefighters and officers 89 91 91 91 91 104 104 106 106 106
Civilians 1 1 1 1 1 1 1 1 1 1
Public works
Operations 20 21 21 21 21 25 25 25 24 24
Engineering 4 0 0 0 0 0 0 0 0 0
Landscaping maintenance 0 0 0 0 0 0 0 0 9 9
Solid waste management 13 13 13 13 13 13 13 13 13 13
Stormwater management fund 2 2 2 3 3 3 2 2 2 4
State street aid 10 11 11 11 11 11 11 11 11 11
Fleet management 8 7 7 6 6 6 6 6 6 6
Parks and recreation
Administration and maintenance 9 9 9 10 10 10 10 11 14 14
Landscaping maintenance 7 7 7 9 10 10 10 9 0 0
College Hill Recrearion Center 3 3 3 4 4 4 4 4 4 4
Cleveland Communiiy Center 4 4 4 4 4 4 4 4 4 4
Waterville Golf Course 6 6 6 0 0 0 0 0 0 0
Animal control
Adm.inistration and operations 8 8 6 6 6 6 6 6 6 6
Community development block grant 2 2 2 2 2 1 2 2 2 2
Subtotal 305 318 316 325 326 349 350 357 362 366
Cleveland Utilities
Electric division 84 83 82 76 83 83 85 85 85 83
Water/wastewater division 98 103 100 108 114 115 116 122 123 121
City schools
Certificated staff 407 423 432 434 445 454 449 462 461 468
Non-certi5cated personnel 277 283 290 294 308 294 296 292 281 278
Library 11 11 11 11 11 11 11 11 11 11
Total 1,182 1,221 1,231 1,248 1,287 1,306 1,307 1,329 1,323 1,327
Source:City Finance Department.
Note- A full-time employee is scheduled to work 2,080 hours per year(including vacation and sick leave)except City
School certificated staff.
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CITY OF CLEVELAND,TENNESSEE
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Function/Pro�
General government
Building permits issued 350 379 403 289
Va1ue of construction permitted $59,121,927 $37,240,586 $65,893,431 $70,217,886
Police
Parking violations 974 1,309 1,631 975
Traffic violations 4,060 4,410 5,766 4,744
Fire
Emergency responses(city only) 2,429 2,872 2,665 2,909
Fires extinguished(city only) 169 242 126 173
Fire inspections 2,208 2,055 2,263 1,634
Public works
St�eet resurfacing(tonnage) 18,898 12,107 9,176 17,795
Utility cut permits(number excavations) 229 226 244 185
Drainage pipe installed(linear ft.) 5,919 4,690 6,936 6,706
Tons ofbrush chipped 8,282 8,644 12,117 8,633
Parks and recreation
Softball league participants 1,500 1,455 1,650 450
Basketball league participants 230 204 202 220
Football league participants 80 70 65 150
Soccer league participants 1,000 850 1,045 2,067
Rounds of golf played 5,000 8,289 3,236 0
Library
Volumes in collection 161,836 164,078 168,061 174,614
Circulation 409,206 401,430 402,064 404,869
Attendants 270,860 277,185 241,778 225,411
City Schools
Average Daily Membership
High School 1,339 1,398 1,448 1,451
Middle School 1,200 1,231 1,227 1,269
Elementary Schools 2,884 2,811 2,850 2,582
Ungraded-Special Education 81 81 81 103
ACT composite scores 20 20 19 20
Percent of High School gradua.tes 86 84 86 90
Electric
Class of Service number of Customers
Residential 25,420 25,806 26,190 26,487
Small lighting and power 3,720 3,789 3,809 3,829
Large lighting and power 608 613 624 621
Street and outdoor lighting 189 188 185 181
Kilowatt-hours purchased 1,103,372,115 1,124,822,813 1,124,645,838 1,092,690,922
Kilowatt-hours sold 1,072,904,012 1,092,325,754 1,093,701,541 1,059,898,637
Line losses and kilowatt-hours
unaccounted for 30,468,103 32,497,059 30,944,297 32,792,285
Percentage of losses and unaccounted
for kilowatt-hours to purchases 2.76% 2.89% 2.75% 3.00%
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Schedule 22
2017 2018 2019 2020 2021 2022
415 370 337 401 523 647
$61,147,619 $96,885,426 $79,375,008 $156,691,994 $94,708,218 $198,776,716
939 959 1,409 686 379 598
3,906 4,759 4,061 3,046 1,926 2,555
2,898 2,891 3,173 3,414 4,405 3,313
249 221 137 131 228 153
3,078 3,154 2,168 3,468 3,543 3,392
12,598 12,790 10,852 18,130 13,699 12,533
234 270 177 178 168 136
5,529 5,340 6,173 6,316 4,070 2,445
10,721 14,028 13,353 15,243 12,450 7,166
425 430 150 0 322 360
220 196 76 402 0 740
150 146 150 230 245 226
2,169 2,092 2,206 3,471 0 3,267
0 0 0 0 0 0
179,345 180,495 185,981 187,723 190,166 193,992
384,655 394,960 417,433 409,484 269,642 380,263
223,416 210,914 199,230 134,538 50,103 104,306
1,586 1,578 1,639 1,682 1,675 1,718
1,310 1,320 1,331 1,343 1,342 1,257
2,500 2,753 2,370 2,457 2,395 2,406
96 96 131 130 98 114
20 20 21 20 19 19
89 89 90 88 91 91
26,872 27,052 27,191 27,329 27,575 27,921
3,846 3,897 3,931 3,932 4,028 4,111
612 605 587 592 585 595
177 172 167 166 163 164
1,093,318,270 1,081,144,905 1,069,273,479 1,030,326,623 1,039,444,215 1,053,875,725
1,059,807,534 1,056,079,493 1,040,483,760 1,003,639,362 1,008,260,890 1,022,259,454
33,510,736 25,065,412 28,789,719 26,687,261 31,183,325 31,616,271
3.07% 2.32% 2.69% 2.59% 3.00% 3.00%
-201 -
CITY OF CLEVELAND,TENNESSEE
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2013 2014 2015 2016
Function/Pro�
Water
Class of Service number of Customers
Residential 26,496 26,811 27,200 27,514
Commercial&Industrial 3,671 3,707 3,728 3,708
Gallons purchased 1,759,640,000 1,717,178,040 1,737,814,650 1,781,982,285
Gallons pumped 1,789,485,000 1,965,420,000 1,919,504,751 1,985,954,794
Gallons sold 2,814,193,000 2,706,972,750 2,733,381,750 2,838,000,000
Line losses and gallons unaccounted for 709,217,000 902,184,898 923,937,651 929,937,079
Percentage oflosses and unaccounted
for gallons to total provided 19.98% 24.50% 25.26% 24.68%
Average daily water consumption(gallons) 7,710,118 7,416,364 7,488,717 7,775,343
Wastewater
Class of Service number of Customers
Residential 15,267 15,469 15,785 15,981
Commercial&Industrial 2,592 2,626 2,655 2,637
Capacity daily(thousands of gallons) 21,600 21,600 21,600 21,600
Treatment during fiscal year(gallons) 3,995,860,000 3,684,650,000 3,285,830,000 4,005,970,000
Sources: Various city departments.
-202-
Schedule 22
(Continued)
2017 2018 2019 2020 2021 2022
27,874 28,144 28,427 28,691 29,212 29,582
3,712 3,745 3,776 3,776 3,848 3,857
1,830,881,097 1,553,131,140 1,753,470,750 1,754,822,000 1,706,774,690 1,730,266,230
2,269,121,474 2,438,184,139 2,344,888,000 2,350,714,727 2,259,089,135 3,950,253,133
3,076,149,000 2,892,261,750 2,950,904,238 2,844,021,750 2,853,327,000 2,927,922,000
1,023,853,571 1,099,053,529 1,147,454,512 1,261,514,977 1,112,536,825 1,022,331,133
24.97% 27.54% 28.00% 30.73% 28.05% 18.00%
8,427,805 7,924,005 8,084,669 7,791,840 7,817,334 8,021,704
16,19 7 16,3 8 2 16,612 16,7 8 0 17,14 7 17,3 6 5
2,635 2,674 2,688 2,704 2,746 2,748
21,600 21,600 21,600 21,600 21,600 21,600
3,350,999,000 2,599,430,000 4,302,393,000 4,474,130,000 3,724,510,000 3,978,730,000
-203 -
CITY OF CLEVELAND,TENNESSEE Schedule 23
, CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Function/Pro�
Police
Stations 1 1 1 1 1 1 1 1 1 1
Substations 0 0 0 0 0 0 0 0 0 0
Patrol units 120 118 120 120 120 120 110 107 86 88
Fire
Stations 5 5 5 5 5 5 6 6 6 6
Fire trucks(pumpers,
ladders&tankers) 14 14 14 14 12 14 14 15 15 15
Public works
Street(miles) 348 348 349 352 356 356 359 362 363 368
Knucklebooms 6 8 9 9 9 9 8 7 7 7
Parks and recreation
Acreage 289 289 289 289 289 289 289 289 299 299
Playgrounds 8 8 8 8 9 9 10 10 10 10
Softball fields 5 5 5 5 5 5 5 5 5 5
Soccer fields 16 16 16 16 16 16 16 16 18 18
Tennis courts 8 8 8 8 8 7 7 7 7 7
Community centers 2 2 2 2 2 2 2 2 2 2
S��hmming pools 3 3 3 3 3 3 3 3 3 3
Golf courses 1 1 0 0 0 0 0 0 0 0
Schools
Elementary schools 6 6 6 6 6 6 7 7 7 7
Middle schools 1 1 1 1 1 1 1 1 1 1
High schools 1 1 1 1 1 1 1 1 1 1
Library
Boolanobiles 1 1 1 1 1 1 1 1 1 1
Electric
Electric li.nes(miles) 537 539 540 543 542 567 570 555 557 561
Substations 15 15 15 15 15 15 15 17 17 17
Street lights 5,801 5,882 6,099 6,098 6,061 6,006 6,003 6,105 6,143 6,237
Traffic signals 613 619 646 656 676 678 693 694 698 698
Pedestrians signals 72 80 80 80 88 88 96 96 96 96
Water
Water mains(miles) 750 760 767 754 753 757 763 771 773 777
Fire hydrants 2,575 2,627 - 2,657 2,700 2,732 2,764 2,810 2,840 2,877 2,918
Storage capacity
(millions of gal) 15,300 15,300 15,300 15,300 15,300 15,300 15,800 15,800 15,800 15,800
Wastewater
Sanitary sewers(miles) 359 359 360 364 364 365 371 371 376 356
Treatment capacity
(thousands of gal) 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600 21,600
Sources: Various city departments and City of Cleveland Utilities Electric,Water and Sewer Divisions.
Notes: No capital asset indicators are available for the general government function.
-204-
OTHER
CITY OF CLEVELAND, TENNESSEE Table 1
INSURANCE IN FORCE
ALL FUND TYPES EXCLUDING CLEVELAND UTILITIES
For the Fiscal Year Ended June 30,2022
Type of Coverage and Policy Policy Details Liability A.nnual
Name of Company Number Period of Coverage Lim.its Premium
Property Building and TMP-8187 9/1/2021 Buildings,contents, $ 81,796,959 $ 144,034
Contents,Boiler and to boilers,fired vessels
Machinery,Commercial 8/31/2022 electric steam generators.
Crime,Inland Marine. Theft,disappearance and
Public Entity Partners destruction. Radio,video
equipment,mobile equip-
ment,police dogs.
Comprehensive TML-026R 7/1/2021 General and public As per $ 458,345
Liability to officials liability,auto schedule
Public Entity Partners 6/30/2022 liability,auto physical
damage,personal injury.
Excess auto physical
damage. Airport liability
Worker's TWC-0187 7/1/2021 Job related injuries, $ 1,000,000 $ 477,060
Compensation to employees $ 1,000 ded.
Public Entity Partners 6/30/2022
Properiy(School TNRMT 7/1/2021 Properly Various $ 442,494
Buildings and Contents, to Equipment
Boiler,Vehicles) 6/30/2022 Liability
Public Entity Partners
Worker's TNRMT 7/1/2021 Job related $ 1,000,000 $ 196,503
Compensation to injuries,
Public Entity Partners 6/30/2022 employees
-205-
CITY OF CLEVELAND,TENNESSEE Table 2
INSURANCE IN FORCE
CLEVELAND UTILITIES
For the Fiscal Year Ended June 30,2022
Cleveland Utilities-Water and Electric Division
Amount
Insurer Type of Coverage of Coverage
Distributors Self Insurance Fund Worker's compensation Statutory
DIC/Illinois Union Pollution Liability $ 6,000,000
Affiliated FM Real property $ 182,000,000
Hartford Machinery and equipment $ 50,000,000
breakdown
Distributors Insurance Co. General liability(primary) $ 1,000,000 (a)
Chubb General liability(excess) $ 1,000,000 (a)
Chubb Auto liability and $ 2,000,000
physical damage
Navigators Excess Liability-Primary Layer $ 4,000,000
Westchester Excess Liability-Excess Layer $ 10,000,000
Global Aerospace Drone Liability $ 5,000,000
Travelers Commercial Crime $ 1,000,000
Chubb Management Liability $ 3,000,000
Travelers Excess Directors&Officers Liability $ 2,000,000
Chubb Fiduciary Liability $ 3,000,000
Travelers Excess Fiduciary Liability $ 2,000,000
Lloyd's Cyber and Privacy Protection $ 2,000,000
(a)The general liability insurance policies with Distributors Insurance Co. and Chubb are limited to$250,000 and
$750,000,respectively,per occurrence.
-206-
CITY OF CLEVELAND,TENNESSEE Table 3
CHANGES IN PROPERTY TAXES RECENABLE
For the Year Ended June 30,2022
Balance Collecrions& Balance
Property Taxes 7/1/2021 Levies Adjustments 6/30/2022
2021 $ 0 $ 27,267,295 $ 26,454,093 $ 813,202
2020 825,600 0 552,783 272,817
2019 347,774 0 200,805 146,969
2018 211,945 0 65,693 146,252
2017 171,560 0 49,640 121,920
2016 71,560 0 17,925 53,635
2015 64,812 0 16,338 48,474
2014 58,091 0 2,093 55,998
2013 36,836 0 2,032 34,804
2012 46,202 0 1,601 44,601
2011 23,327 0 23,327 0
$ 1,857,707 $ 27,267,295 $ 27,386,330 $ 1,738,672
Note-Properiy taxes receivable also include the 2022 lery reported as deferred revenue in the amount
of$26,735,554.
-207-
CITY OF CLEVELAND,TENNESSEE Table 4
UNCOLLECTED DELINQUENT PROPERTY T?,XES FILED
June 30,2022
Original
Tax Amount Unpaid Percentage
Year Filed Balance Collected
2012 $ 396,806 $ 44,601 88.8 %
2013 335,054 34,804 89.6
2014 427,004 55,998 86.9
2015 340,650 48,474 85.8
2016 311,659 53,635 82.8
2017 512,837 121,920 76.2
2018 540,481 146,252 72.9
2019 469,629 146,969 68.7
2020 288,761 272,817 5.5
-208-
CITY OF CLEVELAND,TENNESSEE
CHANGES IN LONG-TERM DEBT BY ISSUE
June 30,2022
Original Date Last
Amount Interest of Maturity
Description of Indebtedness of Issue Rate Issue Date
GOVERNMENTAL ACTIVITIES
BONDSPAYABLE
Payable throu�h the Debt Service Fund:
General Obligation,Refunding,Series 2016A 4,587,360 3.14% 07/O1/16 06/O1/36
General Obligation,Series 2018 9,885,000 2 to S% 07/24/18 06/O1/38
General Obligation,Refunding,Series 2019 34,780,000 2 to 5% 03/26/19 12/O1/33
General Obligation,Refunding,Series 2020 27,450,000 2 to 5% 11/10/20 12/O1/38
General Obligation,Series 2022 19,220,000 3.375 to S% OS/OS/22 06/O1/47
Total Bonds Payable
NOTESPAYABLE
Pavable throu�h Debt Service Fund:
Public Building Authority Clazksville,TN-TMBF Series 2008 1,812,700 Variable 11/25/08 OS/25/28
Motorola equipment loan 466,457 2.45% 12/O1/20 07/O1/24
Motorola equipment loan 455,575 2.45% 12/O1/20 07/O1/24
Total Notes Payable through Debt Service Fund
Pavable throueh the Sales Tax Fund:
Qualified School Construction Loan(QSCB)Series 2009 4,160,000 1.15% 03/Oi/10 07/O1/26
Energy Efficient Schools Initiative Loan 400,000 1.50% 06/Oi/20 08/O1/33
Total Notes Payable through Sales Tax Fund
Total Notes Payable
LEASE�PAYABLE
Pavable through the School Fund:
Computer Leases 1,268,341 3.00% Various Various
Copiers 348,348 3.00% Vazious Various
Total Leases Payable through the School Fund
-209-
Table 5
Paid and/or
Issued Matured Refunded
Outstanding During During During Outstanding
7/1/2021 Period Period Period 6/30/2022
$ 3,062,000 $ - $ 343,000 $ - $ 2,719,000
8,770,000 - 375,000 - 8,395,000
31,575,000 - 1,805,000 - 29,770,000
25,270,000 - 2,275,000 22,995,000
- 19,220,000 - - 19,220,000
$ 68,677,000 $ 19,220,000 $ 4,798,000 $ - $ 83,099,000
$ 849,000 $ - $ 104,000 $ - $ 745,000
466,457 - 466,457 - -
- 455,575 102,030 - 353,545
$ 1,315,457 $ 455,575 $ 672,487 $ - $ 1,098,545
$ 1,326,283 $ - $ 259,577 $ - $ 1,066,706
377,138 - 28,476 - 348,662
$ 1,703,421 $ - $ 288,053 $ - $ 1,415,368
$ 3,018,878 $ 455,575 $ 960,540 $ - $ 2,513,913
$ 1,268,341 $ - $ 410,347 $ - $ 857,994
316,114 32,234 99,737 - 248,611
$ 1,584,455 $ 32,234 $ 510,084 $ - $ 1,106,605
-210-
CITY OF CLEVELAND,TENNESSEE
CHANGES IN LONG-TERM DEBT BY ISSUE
June 30,2022
Original Date Last
Amount Interest of Maturity
Description of Indebtedness Division of Issue Rate Issue Date
BUSINESS-TYPE ACTIVITIES
BONDSPAYABLE
Pavable throueh the Electric Division:
General Obligation,Refunding Series 2016B Electric 885,283 3.14% OS/27/16 06/O1/36
General Obligation,Series 2018B Electric 2,385,000 3 to 5% 12/07/18 06/O1/39
General Obligation,Refunding Series 2019 Electric 2,510,000 2 to 5% 03/26/19 06/30/28
General Obligation,Series 2020 Electric 1,820,000 2 to 5% 11/10/20 12/O1/40
General Obligation,Refunding Series 2020 Electric 7,010,000 2 to 5% 11/10/20 12/O1/34
Tota1 Bonds Payable Electric Division
Pavable throueY►the Water Division:
General Obligation,Series 2016B Water/Wastewater 6,599,357 3.14% 05/27/16 06/O1/36
General Obligation,Series 2018B Water 3,335,000 3 to 5% 12/07/18 06/O1/39
General Obligation,Refunding,Series 2019 Water/Wastewater 11,360,000 2 to 5% 03/26/19 06/30/28
General Obligation,Series 2020 Water/Wastewater 3,630,000 2 to 5% 11/10/20 12/O1/40
General Obligation,Refunding Series 2020 Water/Wastewater 9,965,000 2 to 5% 11/10/20 12/O1/34
General Obligation,Series 2022 Water 2,955,000 3375 to 5% OS/OS/22 06/O1/42
Total Bonds Payable Water Division
Total Bonds Payable
NOTES PAYABLE
Payable throu�,h Electric Division:
Volunteer Electric Cooperative Electric 223,947 0.00% 10/31/18 08/O1/28
Volunteer Electric Cooperative Electric 1,850,053 0.00% 06/30/21 08/O1/30
Volunteer Electric Cooperative Electric 4,523 0.00% 11/30/13 08/O1/23
Volunteer Electric Cooperative Electric 53,706 0.00% 11/30/13 08/O1/23
Volunteer Electric Cooperative Electric 19,734 0.00% 02/O1/16 08/O1/25
Total Notes Payable Electric Division
Pavable through Water Division:
State Revolving Loans-CWO 13-319 Wastewater 1,374,972 1.15% 12/OS/13 02/20/37
State Revolving Loans-CWO 13-320 Wastewater 8,174,000 1.15% 12/OS/13 06/20/37
State Revolving Loans-DG2 14-151 Water 2,000,000 1.50% 10/21/14 06/O1/36
State Revolving Loans-CG4 15-349 Water 2,325,000 1.38% 02/26/15 06/O1/36
State Revolving Loans-DWF 16-172 VJater 3,725,000 1.10% 06/09/16 06/20/37
State Revolving Loans-CG3 17-379 Water 104,897 0.88% O1/09/17 06/20/37
State Revolving Loans-DW6 17-192 Water 800,000 1.60% 06/22/17 06/20/37
State Revolving Loans-DWF 17-193 Water 195,000 1.60% 06/22/17 06/20/37
State Revolving Loans-DWF 18-205 Water 430,000 1.31% 01/25/18 06/20/38
State Revolving Loans-CW618-415 Wastewater 900,000 1.56% 06/19/18 06/O1/38
State Revolving Loans-SRF 18-416 Wastewater 730,000 1.56% 02/08/19 06/O1/41
State Revolving Loans-SRF 18-417 Wastewater 10,000,000 1.58% 03/13/18 06/O1/41
State Revolving Loans-SRF CVJ7 19-431 (1) Wastewater 1,593,900 1.37% 07/10/19 06/O1/41
State Revolving Loans-SRF C18-417-01 (2) Wastewater 10,000,000 0.73% 05/06/22 06/O1/42
Total Notes Payable Water Division
Total Notes Payable
LEASES PAYABLE
Payable through Electric Division
Copiers Leases Electric 50,572 3.00% Various Various
Total Leases Payable
Notes to Schedule .
(1)$1,506,690,of loan proceeds have not been drawn down at June 30,2022.
(2)$8,511,714,of loan proceeds have not been drawn down at June 30,2022.
-211 -
Table 5
(Continued)
Paid and/or
Issued Matured Refunded
Outstanding During During During Outstanding
7/1/2021 Period Period Period 6/30/2022
$ 710,271 $ - $ 46,721 $ • - $ 663,550
2,230,000 - 85,000 - 2,145,000
1,650,000 - 385,000 - 1,265,000
1,820,000 - 60,000 - 1,760,000
6,455,000 - 485,000 - 5,970,000
$ 12,865,271 $ - $ 1,061,721 $ - $ 11,803,550
$ 5,294,729 $ - $ 348,279 $ - $ 4,946,450
3,110,000 - 120,000 - 2,990,000
7,930,000 - 1,915,000 - 6,015,000
3,630,000 - 115,000 - 3,515,000
9,470,000 - 810,000 - 8,660,000
- 2,955,000 - - 2,955,000
$ 29,434,729 $ 2,955,000 $ 3,308,279 $ - $ 29,081,450
$ 42,300,000 $ 2,955,000 $ 4,370,000 $ - $ 40,885,000
$ 179,157 $ - $ 22,395 $ - $ 156,762
1,850,053 - 185,005 - 1,665,048
1,357 - 452 - 905
16,112 - 5,371 - 10,741
9,867 - 1,973 - 7,894
$ 2,056,546 $ - $ 215,196 $ - $ 1,841,350
$ 1,103,296 $ - $ 64,644 $ - $ 1,038,652
7,247,914 - 376,068 - 6,871,846
1,500,558 - 93,948 - 1,406,610
1,802,448 - 108,900 - 1,693,548
2,395,939 - 133,800 - 2,262,139
83,701 - 5,004 - 78,697
720,990 - 35,520 - 685,470
175,328 - 8,652 - 166,676
385,424 - 19,524 - 365,900
839,059 - 3 8,865 - 800,194
491,390 - 15,795 - 475,595
7,913,979 2,086,021 35,456 - 9,964,544
87,210 - - - 87,210
- 1,488,286 - - 1,488,286
$ 24,747,236 $ 3,574,307 $ 936,176 $ - $ 27,385,367
$ 26,803,782 $ 3,574,307 $ 1,151,372 $ - $ 29,226,717
$ 50,572 $ - $ 18,486 $ - $ 32,086
$ 50,572 $ - $ 18,486 $ - $ 32,086
-212-
CITY OF CLEVELAND,TENNESSEE
BOND PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR FOR GOVERNMENTAL ACTNITIES
June 30,2022
Fiscal 2016A 2018 2019
Year Series Series Series
Principal Interest Principal Interest Principal Interest
2023 $ 358,000 $ 85,377 $ 390,000 $ 309,437 $ 1,835,000 $ 1,347,338
2024 363,000 74,135 400,000 297,738 1,880,000 1,281,987
2025 383,000 62,737 410,000 285,737 3,165,000 1,155,863
2026 390,000 50,711 425,000 273,438 3,265,000 995,112
2027 415,000 38,465 445,000 252,187 3,755,000 819,613
2028 80,000 25,434 470,000 229,938 3,735,000 632,362
2029 85,000 22,922 490,000 206,437 4,205,000 433,863
2030 85,000 20,253 515,000 181,938 3,990,000 228,987
2031 85,000 17,584 535,000 161,337 3,195,000 77,319
2032 90,000 14,915 560,000 139,938 240,000 21,500
2033 90,000 12,089 580,000 117,537 245,000 12,700
2034 95,000 9,263 595,000 100,138 260,000 3,900
2035 100,000 6,280 615,000 82,287
2036 100,000 3,140 635,000 63,069
2037 655,000 43,225
2038 675,000 21,937
2039 -
2040
2041
2042
2043
2044
2045
2046
2047
Total $ 2,719,000 $ 443,305 $ 8,395,000 $ 2,766,318 $ 29,770,000 $ 7,010,544
-213 -
Table 6
Total
2020 2022
Series Series Principal Interest
Principal Interest Principal Interest
$ 2,410,000 $ 890,800 $ - $ 852,839 $ 4,993,000 3,485,791
2,565,000 766,425 - 795,394 5,208,000 3,215,679
1,550,000 663,550 495,000 795,393 6,003,000 2,963,280
1,620,000 584,300 520,000 770,644 6,220,000 2,674,205
1,645,000 502,675 545,000 744,643 6,805,000 2,357,583
1,600,000 421,550 575,000 717,394 6,460,000 2,026,678
1,165,000 352,425 605,000 688,643 6,550,000 1,704,290
1,225,000 292,675 635,000 658,394 6,450,000 1,382,247
1,275,000 230,175 665,000 626,644 5,755,000 1,113,059
1,335,000 171,600 700,000 593,394 2,925,000 941,347
1,280,000 125,700 735,000 558,394 2,930,000 826,420
1,305,000 93,450 770,000 521,644 3,025,000 728,395
1,320,000 67,200 800,000 490,844 2,835,000 646,611
1,020,000 43,800 825,000 463,844 2,580,000 573,853
990,000 23,700 855,000 436,000 2,500,000 502,925
690,000 6,900 885,000 406,075 2,250,000 434,912
915,000 375,100 915,000 375,100
945,000 343,075 945,000 343,075
980,000 310,000 980,000 310,000
1,020,000 270,800 1,020,000 270,800
1,060,000 230,000 1,060,000 230,000
1,105,000 187,600 1,105,000 187,600
1,150,000 143,400 1,150,000 143,400
1,195,000 97,400 1,195,000 97,400
1,240,000 49,600 1,240,000 49,600
$ 22,995,000 $ 5,236,925 19,220,000 $ 12,127,158 $ 83,099,000 $ 27,584,250
-214-
CITY OF CLEVELAND,TENNESSEE
NOTE PRiNCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR FOR GOVERNMENTAL ACTIVITIES
June 30,2022
Fiscal Note Payable-Public Building Note Payable-Energy
Year Authority of Clarksville TN(1) Efficient School Initiative Loan
2008 TMBF 2009 QSCB 2020
Series Series Series
Principal Interest Principal Interest Principal Interest
2023 $ 109,000 $ 37,250 $ 237,947 $ 67,184 $ 28,908 $ 5,028
2024 115,000 31,800 259,578 67,184 29,340 4,596
2025 121,000 26,050 259,579 67,184 29,784 4,152
2026 127,000 20,000 285,130 67,184 30,228 3,708
2027 133,000 13,650 24,472 6,292 30,696 3,240
2028 140,000 7,000 31,152 2,784
2029 31,620 2,316
2030 32,100 1,836
2031 32,592 1,344
2032 33,084 852
2033 33,576 360
2034 5,582 14
$ 745,000 $ 135,750 $ 1,066,706 $ 275,028 $ 348,662 $ 30,230
(1)Variable rates of 4%have been assumed on the loan through Clarksville,TN.
-215-
Table 7
Note Payable-Motorola
Equipment Loan
2022
Series Total
Principal Interest Principal Interest
$ 80,817 $ 21,213 $ 456,672 $ 130,675
85,667 16,363 489,585 119,943
90,806 11,224 501,169 108,610
96,255 5,775 538,613 96,667
188,168 23,182
171,152 9,784
31,620 2,316
32,100 1,836
32,592 1,344
33,084 852
33,576 360
5,582 14
$ 353,545 $ 54,575 $ 2,513,913 $ 495,583
-216-
Table 8
CITY OF CLEVELAND,TENNESSEE
LEASE PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR FOR GOVERNMENTAL ACTIVITIES
June 30,2022
Fiscal
Year Computers Copiers Total
Principal Interest Principal Interest Principal Interest
2023 $ 422,657 $ 25,740 $ 81,046 $ 6,296 $ 503,703 $ 32,036
2024 435,337 13,060 65,113 4,099 500,450 17,159
2025 - - 53,220 2,343 53,220 2,343
2026 - - 44,084 775 44,084 775
2027 - - 5,148 64 5,148 64
Total $ 857,994 $ 38,800 $ 248,611 $ 13,577 $ 1,106,605 $ 52,377
-217-
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CITY OF CLEVELAND,TENNESSEE
BOND PRINCIPAL AND INTEREST
REQUIltEMENTS BY FISCAL YEAR FOR BUSINESS-TYPE ACTIVITIES
June 30,2022
Electric,Water and Sewer Revenue and Tax Bonds
Fiscal 2016B Refunding 2018B 2019 Refunding
Yeaz Series Series Series
Principal Interest Principal Interest Principal Interest
2023 $410,000 $176,154 $215,000 $209,950 $1,965,000 $285,400
2024 430,000 163,280 220,000 203,500 1,405,000 230,625
2025 445,000 149,778 230,000 196,900 1,255,000 164,125
2026 345,000 135,805 235,000 190,000 980,000 108,250
2027 350,000 124,972 245,000 178,250 905,000 61,125
2028 355,000 113,982 260,000 166,000 770,000 19,250
2029 375,000 102,835 270,000 153,000
2030 380,000 91,060 285,000 139,500
2031 405,000 79,128 300,000 125,250
2032 410,000 66,411 310,000 113,250
2033 415,000 53,537 325,000 100,850
2034 420,000 40,506 340,000 87,850
2035 430,000 27,318 350,000 74,250
2036 440,000 13,816 365,000 62,000
2037 380,000 47,400
2038 395,000 32,200
2039 410,000 16,400
2040
2041
2042
Total $ 5,610,000 $ 1,338,582 $ 5,135,000 $ 2,096,550 $ 7,280,000 $ 868,775
-218-
Table 9
Total
2020 2021 Refunding 2022
Series Series Series Principal Interest
Principal Interest Principal Interest Principal Interest
$185,000 $172,300 $1,325,000 $649,525 $85,000 $134,571 $4,185,000 $1,627,900
195,000 162,800 1,355,000 582,525 100,000 121,256 3,705,000 1,463,986
205,000 152,800 1,375,000 514,275 100,000 116,256 3,610,000 1,294,134
215,000 142,300 1,400,000 444,900 105,000 111,256 3,280,000 1,132,511
225,000 131,300 1,450,000 373,650 115,000 106,006 3,290,000 975,303
240,000 119,675 1,480,000 300,400 120,000 100,256 3,225,000 819,563
255,000 107,300 1,505,000 225,775 125,000 94,256 2,530,000 683,166
265,000 94,300 1,185,000 158,525 130,000 88,006 2,245,000 571,391
275,000 80,800 1,200,000 98,900 135,000 81,506 2,315,000 465,584
290,000 68,126 780,000 53,300 145,000 74,756 1,935,000 , 375,843
295,000 57,901 620,000 28,400 150,000 67,506 1,805,000 308,194
305,000 50,425 630,000 12,800 160,000 60,006 1,855,000 251,587
310,000 44,275 325,000 3,250 165,000 53,607 1,580,000 202,700
320,000 37,975 170,000 48,039 1,295,000 161,830
325,000 31,524 175,000 42,300 880,000 121,224
330,000 24,975 180,000 36,175 905,000 93,350
340,000 18,274 190,000 29,875 940,000 64,549
345,000 11,210 195,000 23,225 540,000 34,435
355,000 3,772 200,000 16,400 555,000 20,172
210,000 8,400 210,000 8,400
$ 5,275,000 $ 1,512,032 $ 14,630,000 $ 3,446,225 $ 2,955,000 $ 1,413,658 $ 40,885,000 $ 10,675,822
-219-
CITY OF CLEVELAND,TENNESSEE
NOTE PRINCIPAL AND INTEREST
REQLTIREMENTS BY FISCAL YEAR FOR BUSINESS-TYPE ACTNITIES
June 30,2022
State of Tennessee State of Tennessee State of Tennessee
Fiscal Revolving Revolving Revolving
Year Loan Fund 13-319 Loan Fund 13-320 Loan Fund DG2
Principal Interest Principal Interest Principal Interest
2023 $ 65,388 $ 11,604 $ 380,412 $ 77,028 $ 95,364 $ 20,448
2024 66,144 10,848 384,816 72,624 96,804 19,008
2025 66,912 10,080 389,268 68,172 98,268 17,544
2026 67,680 9,312 393,756 63,684 99,756 16,056
2027 68,472 8,520 398,316 59,124 101,256 14,556
2028 69,264 7,728 402,912 54,528 102,792 13,020
2029 70,056 6,936 407,580 49,860 104,340 11,472
2030 70,872 6,120 412,296 45,144 105,912 9,900
2031 71,688 5,304 417,060 40,380 107,520 8,292
2032 72,516 4,476 421,872 35,568 109,140 6,672
2033 73,356 3,636 426,756 30,684 110,784 5,028
2034 74,208 2,784 431,688 25,752 112,464 3,348
2035 75,060 1,932 436,680 20,760 114,156 1,656
2036 75,936 1,056 441,720 15,720 48,054 180
2037 51,100 223 446,832 10,608
2038 451,992 5,448
2039 227,890 766
2040
2041
2042
$ 1,038,652 $ 90,559 $ 6,871,846 $ 675,850 $ 1,406,610 $ 147,180
-220-
Table 10
Sta.te of Tennessee State of Tennessee State of Tennessee
Revolving Revolving Revolving
Loan Fund CG4 15-349 Loan Fund DWF 16-172 Loan Fund CG3 17-379
Principal Interest Principal Interest Principal Interest
$ 110,412 $ 22,680 $ 135,300 $ 24,420 $ 5,052 $ 672
111,948 21,144 136,812 22,908 5,100 624
113,508 19,584 138,336 21,384 5,136 588
115,080 18,012 139,872 19,848 5,184 540
116,676 16,416 141,432 18,288 5,232 492
118,296 14,796 143,016 16,704 5,280 444
119,940 13,152 144,612 15,108 5,328 396
121,608 11,484 146,220 13,500 5,376 348
123,300 9,792 147,852 11,868 5,424 300
125,016 8,076 149,508 10,212 5,472 252
126,744 6,348 151,176 8,544 5,520 204
128,508 4,584 152,856 6,864 5,568 156
130,296 2,796 154,560 5,160 5,616 108
132,216 957 156,288 3432 5,664 60
158,028 1692 3,745 14
66,271 184
$ 1,693,548 $ 169,821 $ 2,262,139 $ 200,116 $ 78,697 $ 5,198
-221 -
CITY OF CLEVELAND,TENNESSEE
NOTE PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR FOR BUSINESS-TYPE ACTIVITIES
June 30,2022
State of Tennessee State of Tennessee State of Tennessee
Fiscal Revolving Revolving Revolving
Year Loan Fund DW6 17-192 Loan Fund DVJF 17-193 Loan Fund DWF 18-205
Principal Interest Principal Interest Principal Interest
2023 $ 35,976 $ 10,704 $ 8,796 $ 2,604 $ 19,776 $ 4,680
2024 36,552 10,128 8,940 2,460 20,040 4,416
2025 37,140 9,540 9,084 2,316 20,304 4,152
2026 37,740 8,940 9,228 2,172 20,568 3,888
2027 38,352 8,328 9,372 2,028 20,844 3,612
2028 38,964 7,716 9,528 1,872 21,120 3,336
2029 39,600 7,080 9,684 1,716 21,396 3,060
2030 40,236 6,444 9,840 1,560 21,684 2,772
2031 40,884 5,796 9,996 1,404 21,960 2,496
2032 41,544 5,136 10,164 1,236 22,260 2,196
2033 42,216 4,464 10,320 1,080 22,548 1,908
2034 42,888 3,792 10,488 912 22,848 1,608
2035 43,584 3,096 10,656 744 23,148 1,308
2036 44,292 2388 10,836 564 23,448 1008
2037 45,000 1680 11,004 396 23,760 696
2038 45,732 948 11,184 216 24,072 384
2039 34,770 229 ' 7,556 43 16,124 79
2040
2041
2042
$ 685,470 $ 96,409 $ 166,676 $ 23,323 $ 365,900 $ 41,599
-222-
Table 10
(Cont.)
State of Tennessee State of Tennessee State of Tennessee
Revolving Revolving Revolving
Loan Fund CW6 18-415 (1) Loan Fund DWF 18-416 Loan Fund SRF 18-417
Principal Interest Principal Interest Principal Interest
$ 39,228 $ 12,204 $ 21,348 $ 7,272 $ 429,132 $ 154,344
39,840 11,592 21,684 6,936 435,960 147,516
40,476 10,956 22,032 6,588 442,896 140,580
41,112 10,320 22,380 6,240 449,952 133,524
41,748 9,684 22,728 5,892 457,116 126,360
42,408 9,024 23,076 5,544 464,388 119,088
43,080 8,352 23,448 5,172 471,780 111,696
43,752 7,680 23,820 4,800 479,280 104,196
44,436 6,996 24,192 4,428 486,912 96,564
45,132 6,300 24,564 4,056 494,664 88,812
45,840 5,592 24,960 3,660 502,536 80,940
46,560 4,872 25,344 3,276 510,528 72,948
47,304 4,128 25,740 2,880 518,664 64,812
48,036 3396 26,148 2472 526,908 56,568
48,792 2640 26,556 2064 535,296 48,180
49,560 1,872 26,976 1,644 543,816 39660
50,340 1,092 27,396 1,224 552,468 31008
42,550 303 27,828 792 561,264 22,212
28,272 348 570,192 13,284
7,103 19 530,792 4,204
$ 800,194 $ 117,003 $ 475,595 $ 75,307 $ 9,964,544 $ 1,656,496
-223 -
CITY OF CLEVELAND,TENNESSEE
NOTE PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR FOR BUSINESS-TYPE ACTIVITIES
June 30,2022
State of Tennessee State of Tennessee
Fiscal Revolving Revolving
Year Loan Fund SRF 19-431 (1) Loan Fund SRF 18-417-01 (2)
Principal Interest Principal Interest
2023 $ 69,756 $ 21,396 $ 466,092 $ 71,448
2024 70,716 20,436 469,512 68,028
2025 71,688 19,464 472,944 64,596
2026 72,684 18,468 476,412 61,128
2027 73,680 17,472 479,904 57,636
2028 74,700 16,452 483,420 54,120
2029 75,720 15,432 486,960 50,580
2030 76,764 14,388 490,524 47,016
2031 77,820 13,332 494,112 43,428
2032 78,900 12,252 497,736 39,804
2033 79,992 11,160 501,3 84 3 6,156
2034 81,096 10,056 505,056 32,484
2035 82,212 8,940 508,752 28,788
2036 83,340 7812 512,484 25056
2037 84,492 6660 516,240 21300
2038 85,656 5,496 520,020 17,520
2039 86,832 4,320 523,824 13,716
2040 88,032 3,120 527,664 9,876
2041 89,244 1,908 531,528 6,012
2042 90,576 669 535,432 2,117
$ 1,593,900 $ 229,233 $ 10,000,000 $ 750,809
(1) $1,506,690,of loan proceeds have not been drawn down at June 30,2022.
(2) $8,511,714,of loan proceeds have not been drawn down at June 30,2022.
-224-
Table 10
Volunteer Energy Notes Payable
Urbane Rd Anatole Michigan Ave Pleasant Grove Freewill Rd Tota.l
Principal Principal Principal Principal Principal Principal Interest
$ 22,395 $ 185,005 $ 452 $ 5,371 $ 1,973 $ 2,097,228 $ 441,504
22,395 185,005 452 5,371 1,973 2,120,064 418,668
22,395 185,005 1,973 2,137,365 395,544
22,395 185,005 1,973 2,160,777 372,132
22,395 185,005 2,182,528 348,408
22,395 185,005 2,206,564 324,372
22,395 185,005 ' 2,230,924 300,012
185,006 2,233,190 275,352
185,006 2,258,162 250,380
2,098,488 225,048
2,124,132 199,404
2,150,100 173,436
2,176,428 147,108
2,135,370 120,669
1,950,845 96,153
1,825,279 73,372
1,527,200 52,477
1,247,338 36,303
1,219,236 21,552
1,163,903 7,009
$ 156,765 $ ####### $ 904 $ 10,742 $ 7,892 $ 39,245,121 $ 4,278,903
-225 -
Table 11
CITY OF CLEVELAND,TENNESSEE
LEASE PRINCIPAL AND INTEREST
REQUIREMENTS BY FISCAL YEAR FOR BUSINESS-TYPE ACTNITIES
June 30,2022
Fiscal
Year Copiers Total
Principal Interest Principal Interest
2023 $ 19,049 $ 702 $ 19,049 $ 702
2024 11,715 196 11,715 196
2025 1,322 5 1,322 5
Total $ 32,086 $ 903 $ 32,086 $ 903
-226-
CITY OF CLEVELAND,TENNESSEE Table 12
INVESTMENTS
June 30,2022
Fair
Description Cost Value
Investment in Certificates of Deposit:
First Tennessee Bank 0.55% $ 13,694 $ 13,694
First Tennessee Banlc 0.55% 25,001 25,001
First Tennessee Bank 0.55% 30,327 30,327
First Tennessee Bank 0.55% 14,993 14,993
First Tennessee Bank 0.55% 29,987 29,987
First Tennessee Bank 0.55% 58,733 58,733
First Tennessee Bank 1.60% 5,991 5,991
First Tennessee Bank 0.55% 40,528 40,528
Southeast Bank 031% 250,583 250,583
Total Certificates of Deposit $ 469,837 $ 469,837
219,254
Investment in Treasury Notes:
US TreasuryBill $ 5,018,832 $ 5,012,382
US Treasury Bill 4,970,828 4,973,300
Total US Treasury Notes $ 9,989,660 $ 9,985,682
Inveshnent in Local Government Investment Pool:
State of Tennessee $ 4,140 $ 4,140
Total Local Government Investment Pool $ 4,140 $ 4,140
TotalInvestrnents $ 10,463,637 $ 10,459,659
Inveshnents in Fiduciary Fund:
Mutual Funds:
American Beacon Sma11 Cap Value Fund $ 181,468 $ 176,055
Clearbridge International Growth Fund 221,069 195,209
Federated Total Return Bond Fund 187,360 165,957
John Hancock Funds III-International Growth Fund 241,470 197,582
Lord Abbett Short Duration Income Fund 345,996 322,947
MFS Mid Cap Growth Fund 95,976 86,515
Pimco Global Bond Fund 150,618 140,034
T. Rowe Price Emerging Markets Stock Fund 191,689 151,088
The Hartford Small Cap Growth I 238,396 165,539
T'homburg Limited Term Income Fund 376,802 351,514
Vanguard Growth Index Fund 321,885 380,857
Vanguazd High Dividend Yield Index Fund 450,521 504,095
Vanguard Mid-Cap Growth Index Fund 83,454 90,175
Victory Sycamore Established Value I 213,468 223,348
Total Fiduciary Fund Investments $ 3,300,172 $ 3,150,915
-227-
CITY OF CLEVELAND,TENNESSEE Table 13
TRANSFERS
For the Fiscal Year Ended June 30,2022
Transfers In: Transfers Out: Amount
Capital Improvement Program Fund General Fund $ 2,004,718
Community Development Block Grant Fund General Fund 30,000
Debt Service Fund General Fund 6,728,579
Debt Service Fund School Fund 816,913
Debt Service Fund State Street Aid Fund 447,836
General Fund Cleveland Utilities-Electric Division 2,417,873
General Fund Cleveland Utilities-Water Division 486,260
Library Fund General Fund 679,900
Metropolitan Transportation Planning Organization General Fund 89,000
School Fund General Fund 5,605,300
School Fund School Federal Projects Fund 3,737
Solid Waste Management Fund General Fund 850,000
Total $ 20,160,116
-228-
CITY OF CLEVELAND,TENNESSEE Table 14
SURETY BONDS OF PRINCIPAL OFFICIALS
For the Year Ended June 30,2022
Amount
Name Office � of Bond
Kevin Brooks Mayor $ 600,000
Avery Johnson,Sr. Vice Mayor 600,000
William Estes Councilman 0
Dale Hughes Councilman 0
Tom Cassada Councilman 0
David May,Jr. Councilman 0
Marsha McKenzie Councilwoman 0
Ken Webb Councilman 0
Joe Fivas City Manager 600,000
Shawn McKay Assistant City Manager/CFO 1,150,000
-229-
CITY OF CLEVELAND,TENNESSEE Table 15
SCHEDULE OF CASH SHORTAGES AND OTHER THEFTS
For the Year Ended June 30,2022
Fiscal Original Beginning/
Yeaz Audit Original Carry- Current Current End of
First Finding Amount of Forward Year Year Year
Re�orted Department Number Shorta�e Balance Shorta e Reductions Balance
1 2020 Information 2020-001 $4,270 $4,270 $0 $0 $4,270
Technology
Cleveland
Utilities
Explanation of Cash Shortages
1 Cleveland Utilities conducted an investigation in conjunction with the Cleveland Police Department and the District
Attomey General and determined that a former information technology employee misappropriated urilities computer
equipment with a value estimated at$4,270. The former employee denies all chazges and the case will go to court.
Disposition: As of June 30,2022,the reported shortage is subject of the court findings.
-230-
SINGLE AUDIT SECTION
CITY OF CLEVELAND,TENNESSEE
SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE ACTNITY
For the Fiscal Year Ended June 30,2022
State
CFDA Grant
Federa.l Grantor/Pass-Through Grantor/Program or Cluster Number Number
FEDERAL AWARDS:
U.S.DEPARTMENT OF AGRICULTURE
Passed through the TN Department of Education:
Child Nutrition Cluster:
School Breakfast Program 10.553 * N/A
Subtotal School Breakfast Program 10.553
National School Lunch Program 10.555 * N/A
National School Lunch Program-Commodity assistance 10.555 * N/A
Subtotal School Lunch Program 10.555
Summer Feeding Program 10.559 * N/A
Subtotal Summer Feeding Program 10.559
Total Child Nutrition Cluster
USDA Fresh Fruits and Vegetables 10.582 N/A
COVID 19-Pandemic EBT Administrative Costs 10.649 N/A
Tota1 U.S.Department of Agriculture
U.S.DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
CDBG Entitlement Grants Cluster:
Community Development Block Grant 14.218 * N/A
COVID 19-Community Development Block Grant 14.218 * N/A
Total CDBG Entitlement Grants Cluster
Passed through the TN Housing Development Agency:
HOME Investment Parbaership Program 14.239 * N/A
Total U.S.Department of Housing and Urban Development
U.S.DEPARTMENT OF.NSTICE
Protective vests 16.607 N/A
Edward Byrne Memorial Justice Assistance 16.738 N/A
Total U.S.Deparhnent of Justice
U.S.DEPARTMENT OF TRANSPORTATION
Passed through the TN Department of Transportation
Airport Improvement Programs:
North property development 20.106 AERO-18230
Cares Act Part 4 20.106 AERO-21183
Subtotal Program 20.106
Highway Planning and Construction Cluster
Transportation Planning 20.205 * Z19MP0004
Intersection Improvement Georgetown Rd 20.205 * STP-M-6023
17th Street Improvements 20.205 * STP-M--4472
Gaut Street Sidewalks 20.205 * TAP-9203
Adkisson Drive Resurfacing&Safety Improvements 20.205 * STP-M-3660
Paul Huff Parkway Resurfacing&Safety Improvements 20.205 * STP-M-NA-9203
Total Highway Planning Construction Cluster
-231 -
(Continued)
Accrued Accrued
(LJnearned) (ilnearned)
Grant Revenues Cash Expend- Grant Revenues
July 1,2021 Receipts itures June 30,2022
$ 0 $ 1,196,983 $ 1,196,983 $ 0
0 1,196,983 1,196,983 0
$ 0 $ 3,087,636 $ 3,087,636 $ 0
0 280,259 280,259 0
$ 0 $ 3,367,895 $ 3,367,895 $ 0
$ 0 $ 82,992 $ 82,992 $ 0
0 82,992 82,992 0
$ 0 $ 4,647,870 $ 4,647,870 $ 0
0 70,926 70,926 0
0 5,814 5,814 0
$ 0 $ 4,724,610 $ 4,724,610 $ 0
$ (920) $ 439,116 $ 547,265 $ (109,069)
(17,250) 115,071 322,321 (224,500)
$ (18,170) $ 554,187 $ 869,586 $ (333,569)
$ (22,222) $ 76,194 $ 53,972 $ 0
$ (40,392) $ 630,381 $ 923,558 $ (333,569)
$ (12,779) $ 12,779 $ 2,936 $ (2,936)
0 12,821 12,821 0
$ (12,779) $ 25,600 $ 15,757 $ (2,936)
$ (258,074) $ 265,707 $ 18,328 $ (10,695)
0 130,536 130,536 0
$ (258,074) $ 396,243 $ 148,864 $ (10,695)
$ (56,378) $ 79,312 $ 133,179 $ (110,245)
0 2,294 2,294 0
(382,578) 1,740,664 1,910,924 (552,838)
(972) 10,040 9,068 0
0 256 256 0
0 262 10,3 87 (10,125)
$ (439,928) $ 1,832,828 $ 2,066,108 $ (673,208)
-232-
CITY OF CLEVELAND,TENNESSEE
SCHEDULE OF FEDER.AL AND STATE FINANCIAL ASSISTANCE ACTNITY
For the Fiscal Year Ended June 30,2022
State
CFDA Grant
Federal Grantor/Pass-T'hrough Grantor/Program or Cluster Number Number
FEDERAL AWARDS-(Continued):
U.S.DEPARTMENT OF TRANSPORTATION-(Continued)
Passed through the TN Department of Transportation-(Continued)
Highway Safety Cluster
Safety Enforcement Grant 20.600 Z22THS060
Subtotal Program 20.600 20.600
Total Highway Safety Cluster
High V isibility Enforcement 20.607 Z 17THS 131
Total U.S.Department of Transportation
U.S.DEPARTMENT OF TREASURY
Passed through State Department of Finance and Administration:
COVID 19-American Rescue Plan Act 21.019 * N/A
Passed through the TN Department of Education:
COVID 19-LEA Reopening grant 21.019 * N/A
Subtotal Program 21.019
Total U.S.Department of Treasury �
NATIONAL ENDOWMENT FOR THE HUMA1vITIES
Passed through the TN State Library and Archives:
Technology Grant 45310 N/A
Total National Endowment for the Humanities
U.S.ENVIItONMENTAL PROTECTION AGENCY
Passed through TN Department of Environment and Conservation:
Clean Water State Revolving Fund Cluster:
Grants for Clean Water-State Revolvi.ng Loan
-Loan SRF 18-417 66.458 N/A
-Loan SRF 18-417-01 66.458 N/A
Total Clean Water State Revolving Fund Cluster
Total U.S.Environmental Protection Agency
U.S.DEPARTMENT OF EDUCATION
Passed thorough the TN Department of Education:
Special Education Cluster:
Special Education-Grants to States 84.027 * N/A
Subtotal Special Education-Grants to States 84.027
Special Education-Preschool Grants 84.173 * N/A
Subtotal Special Education-Preschool Grants 84.173
Total Special Education Cluster
Title I Grant to Local Educational Agencies 84.010 N/A
VocationalImprovement 84.048 N/A
English Language Acquisition Enhancement Title III 84365 N/A
Teacher and Principal Training&Recruiting Title II-A 84.367 N/A
Title N Student Support and Academic Achievement Grants 84.424 N/A
-233 -
(Continued)
Accrued Accrued
(Unearned) (Unearned)
Grant Revenues Cash Expend- Grant Revenues
July 1,2021 Receipts itures June 30,2022
$ 0 $ 9,628 $ 21,996 $ (12,368)
$ 0 $ 9,628 $ 21,996 $ (12,368)
$ 0 $ 9,628 $ 21,996 $ (12,368)
$ 0 $ 23,941 $ 23,941 $ 0
$ (698,002) $ 2,262,640 $ 2,260,909 $ (696,271)
$ 0 $ 4,656,500 $ 1,604,044 $ 3,052,456
15,256 0 15,256 0
$ 15,256 $ 4,656,500 $ 1,619,300 $ 3,052,456
$ 15,256 $ 4,656,500 $ 1,619,300 $ 3,052,456
$ 0 $ 31,037 $ 31,037 $ 0
$ 0 $ 31,037 $ 31,037 $ 0
$ 0 $ 2,086,021 $ 2,086,021 $ 0
0 1,488,286 1,488,286 0
$ 0 $ 3,574,307 $ 3,574,307 $ 0
$ 0 $ 3,574,307 $ 3,574,307 $ 0
$ (7,182) $ 1,247,266 $ 1,625,597 $ (385,513)
$ (7,182) $ 1,247,266 $ 1,625,597 $ (385,513)
0 43,939 57,784 (13,845)
$ 0 $ 43,939 $ 57,784 $ (13,845)
$ (7,182) $ 1,291,205 $ 1,683,381 $ (399,358)
$ (42,999) $ 1,422,841 $ 1,731,145 $ (351,303)
(8,511) 136,977 144,766 (16,300)
(4,060) 83,878 86,874 (7,056)
0 84,597 107,176 (22,579)
(18,666) 72,524 53,858 0
-234-
CITY OF CLEVELAND,TENNESSEE
SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE ACTNITY
For the Fiscal Year Ended June 30,2022
State
CFDA Grant
Federal Grantor/Pass-Through Grantor/Program or Cluster Number Number
FEDERAL AWARDS-(Continued):
U.S.DEPARTMENT OF EDUCATION-(Continued)
Passed thorough the TN Department of Education-(Continued)
COVID 19-Education Stabilization Fund Program-Civic Seal Grant 84.425C * N/A
COVID 19-Education Stabilization Fund Program-ESSER I 84.425D * N/A
COVID 19-Education Stabilization Fund Program-ESSER II 84.425D * N/A
COVID 19-Education Stabilization Fund Program-ESSER III 84.425D * N/A
COVID 19-Education Stabilization Fund Program-Planning Grant 84.425D * N/A
COVID 19-Education Stabilization Fund Program-Best for All District Grant 84.425D * N/A
COVID 19-Education Stabilization Fund Program-TN All Corps Grant 84.425D * N/A
Subtotal Program 84.425
Total U.S.Department of Education
U.S.DEPARTMENT OF HEALTH AND HUMAN SERVICES
Passed Through Tennessee Department
of Education:
COVID 19-Epidemiology and Laboratory Capacity Grant 93.323 * N/A
Total U.S.Depariment of Health and Human Services
U.S.DEPARTMENT OF HOMELAND SECURITY
Passed Through Tennessee Emergency
Management Agency:
Disaster Grant-Public Assistance 97.036 N/A
Total Disaster Grant-Public assistance 97.036 N/A
Total U.S.Department of Homeland Security
TOTAL FEDERAL AWARDS
-235-
(Continued)
Accrued Accrued
([Jnearned) (iJnearned)
Grant Revenues Cash Expend- Grant Revenues
July 1,2021 Receipts itures June 30,2022
$ 0 $ 2,972 $ 6,320 $ (3,348)
(26,223) 247,990 349,325 (127,558)
(2,861,965) 4,472,819 1,622,725 (11,871)
0 1,630,334 2,140,229 (509,895)
0 36,499 59,210 (22,711) .
0 250,000 250,000 0
0 257,490 257,490 0
$ (2,888,188) $ 6,898,104 $ 4,685,299 $ (675,383)
$ (2,969,606) $ 9,990,126 $ 8,492,499 $ (1,471,979)
$ 0 $ 490,892 $ 850,431 $ (359,539)
$ 0 $ 490,892 $ 850,431 $ (359,539)
$ 0 $ 480,740 $ 480,740 $ 0
$ 0 $ 480,740 $ 480,740 $ 0
$ 0 $ 480,740 $ 480,740 $ 0
$ (3,705,523) $ 26,866,833 $ 22,973,148 $ 188,162
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CITY OF CLEVELAND,TENNESSEE
SCHEDULE OF FEDERAL AND STATE FINANCIAL ASSISTANCE ACTNITY
For the Fiscal Year Ended June 30,2022
State
CFDA Grant
Federal Grantor/Pass-Through Grantor/Program or Cluster Number Number
STATE AWARDS
TN Department of Finance and Administration:
D'uect Appropriations Grant NA N/A
TN Deparhnent of Agriculiure:
Community Tree Planting Project N/A 2522
TN Deparbnent of Education:
Safe Schools Act N/A N/A
Coordinated School Health N/A N/A
School Resource Officer Grant N/A N/A
Learning camps N/A N/A
TN Department of Health and Human Services
Child Safety Grant N/A N/A
Diabetes Initiarive NA Z-19195593
TN Department of Transportation:
Jetport-Airport maintenance N/A AERM-22106000
Jetport-North property development(State Portion) N/A AERO-18215
Jetport-700'Runway Extension Const. N/A AERO-17224
Local Interstate Connector, Stone Lake Road N/A 113131
Multi-Modal Access Grant N/A 140160
Georgetown&Peerless N/A 06LPLM-SO-076
TOTAL STATE AWARDS
TOTAL FEDERAL AND STATE AWARDS
*Denotes major programs
Note 1: Expenditures under the U.S.Deparhment of Agriculture Commodity Assistance grant received by the Board
of Education represent receipts and expenditures of noncash commodities as value based on equivalent
purchased product.
Note 2: Basis of presentation: The accompanying Schedule of Federal and State Financial Assistance includes
federal and state awazd activity of the City of Cleveland,Tennessee under programs of the federal
and state government for the year ended June 30,2022. The information in this schedule is presented
in accordance with the requirements of Title 2 U.S.Code ofFederal Regulations Part 200, Uniform
Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of the City,it is not intended to and
does not present the financial position,changes in net assets,or cash flows of the City.
Note 3: Summary of Significant Accounting Policies: The accompanying Schedule of Federal and State Financial
Assistance reports cash receipts when received and expenditures when incurred. Bracketed amounts
represent grant revenues receivable from the grantor. Expenditures are recognized following the cost
principles contained in the Uniform Guidance,wherein certain types of expenditures are not allowable or
are limited as to reimbursement.
Note 4: The City did not elect to use the 10-percent de min;Tr,is indirect cost rate as allowed under the Uniform Guidance.
-237-
(Continued)
Accrued Accrued
(Unearned) (Unearned)
Grant Revenues Cash Expend- Grant Revenues
July 1,2021 Receipts itures June 30,2022
$ 0 $ 512851 $ 512851 $ 0
(6,372) 6,372 3,920 (3,920)
(92,725) 116,225 116,119 (92,619)
(41,278) 114,825 123,008 (49,461)
0 35,000 35,000 0
(506,732) 554,001 661,770 (614,501)
0 4,392 4,392 0
(63,658) 203,351 182,000 (42,307)
0 15,000 15,000 0
(266,902) 275,862 17,807 (8,847)
0 3,140 3,140 0
0 35,133 317,607 (282,474)
(15,389) 604,131 766,302 (177,560)
0 50,502 50,502 0
$ (993,056) $ 2,530,785 $ 2,809,418 $ (1,271,689)
$ (4,698,579) $ 29,397,618 $ 25,782,566 $ (1,083,527)
/
-238-
VVE�GEWOOD ACCOUNTING, PLLC
CERTIFIED PUBLIC ACCOUNTANTS
WILLIAM B.HIRKS�Y,CPA WEDGEWOOD OFP'IC�PARK MrM�ji':�i5
M11RK A.LAY,CPA 4395 N.OCOLI�_S"1'REL�' �,u�erucnN itvsriru'rt:oF
SCOTT D.HALL,CPA CLCV�I.AND,TENNESS�E 37312 ce�rru�rr;ll i�oHi.ic nccouN�rn,v�s
ANGELA KEY RITCHEY,CPA 'reNvi:sse�soc:u.iv or
BRANDON H.BARNES,CPA T�LEPHONE: (423)47G55S1 c��rrtH�i��i�ua�_rc eccou��ra:vTs
FACSIMIL�: (423) 472-9t�93
EMAIL:cpa�wedgewoodaccounting.com
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTIl�G AND
ON COMPLIANCE AND OTI-�R MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS
PERFORMED IN ACCORDANCE WITH GOVERNMENT A UDITING STANDARDS
To the Honorable Mayor and Council
of the City of Cleveland
Cleveland,Tennessee
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 GovernmentAuditing Standards issued by the Comptroller
General of the United States, the financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund information of City of Cleveland, Tennessee, as of and for the
year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise City of
Cleveland,Tennessee's basic financial statements and have issued our report thereon dated January 20,2023.
Report on Internal Control over Financial Reporting
In planning and performing our audit of the financial statements,we considered the City of Cleveland,Tennessee's
internal control over fmancial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the fmancial statements,but not for
the purpose of expressing an opinion on the effectiveness of the City of Cleveland, Tennessee's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City of Cleveland, Tennessee's intemal
control.
A deficiency in internal control exists when the 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 fmancial statements
will not be prevented, or detected and corrected, on a timely basis. A sign�cant deficiency is a deficiency, or a
combination of deficiencies, in intemal control that is less severe than a material weakness,yet important enough
to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies and therefore,material weaknesses or significant deficiencies may e�cist that were not identified.Given
these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. We identified a deficiency in internal control, described in the accompanying schedule of
fmdings and questioned costs as items that we consider to be significant deficiencies: 2022-001.
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Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Cleveland, Tennessee's financial statements
are free from material 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 fmancial statements.However,providing an opinion on compliance witli those provisions was not an objective
of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed instances of
noncompliance or other matters that are required to be reported under Government Auditing Standards and which
are described in the accompanying schedule of findings and questioned costs as item 2022-001.
City of Cleveland,Tennessee's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City of Cleveland,
Tennessee's response to the fmdings identified in our audit and described in the accompanying schedule of fmdings
and questioned costs. The City of Cleveland, Tennessee's response was not subjected to the other auditing
procedures applied in the audit of the financial statements and,accordingly,we express no opinion on the response.
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
results 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 GovernmentAuditing Standards
in considering the entity's internal control and compliance.Accordingly,this communication is not suitable for any
other purpose.
(,v�e.d�c�-� �.Ce��c��u(v�, Pc,�.t—
WEDGEWOOD ACCOUNTING,PLLC
Certified Public Accountants
Januaty 20,2023
-240-
�VEDGEWOOD ACC;OUNTING, YLLC
CEI2TIFIED PUKLIC ACCOUNTANI'S
WILLIAM B.HIRI{SEY,CPA 1�,'LDGE��'OOD OI'I'ICE PARK �u�:��t;[�:xs
MARIC A.LAY,CPA 4395 N.OCOEE STREET n!�r•.kic.�:�insrn����rr or
SCOTT D.HALL,CPA CLEVGI.AND,TENNESSEE 37312 c��rr�r•�ei�[�usi.�c nccoonTavTs
ANGELA KEY I2ITCHEY,CPA 1�i�:v�i�;ssr,r.socirry oF
BRANDON H.BARNES,CPA "rLLLPHONE: (423)47G5581 ��:��'��'�t�:t�t�u[iiac nccouvTA�rs
PACSIMILL: (423)4i2-9893
GMAIL:cpa«wedgewoodaccounting.com
INDEPENDENT AUDITOR'S REPORT ON COMI'LIANCE FOR EACH MAJOR PROGRAM;
REPORT ON INTERNAL CONTROL OVER COMI'LIANCE;AND REPORT ON THE SCHEDULE
OF EXPENDITURES OF FEDERAL AWARDS REQUIIZED BY UN�ORM GUIDANCE
To the Honorable Mayor and Council
of the City of Cleveland
Cleveland,Tennessee
Report on Compliance for Each Major Federal Program
Opinion on Each Major Federal Program
We have audited the City of Cleveland,Tennessee's compliance with the types of compliance requirements
identified as subject to audit in the OMB Compliance Supplement that could have a direct and material
effect on each of the City of Cleveland, Tennessee's major federal programs for the year ended June 30,
2022.The City of Cleveland,Tennessee'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 City of Cleveland, Tennessee 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 for Opinion on Each Major Federal Program
We conducted our audit of compliance in 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). 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 City of Cleveland, Tennessee, 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 su�cient and appropriate to provide a basis for our opinion on
compliance for each major federal program.Our audit does not provide a legal determination of the City of
Cleveland,Tennessee's compliance with the compliance requirements referred to above.
-241 -
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementa.tion, and maintenance of effective internal control over compliance with the requirements of
laws, statutes,regulations,rules, and provisions of contracts or grant agreements applicable to the City of
Cleveland,Tennessee'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 refened to above occurred,whether due to fraud or error,and express an opinion
on the City of Cleveland,Tennessee'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 generally accepted auditing standards, Government Auditing Standards, and the Uniform
Guidance will always detect material noncompliance when it exists. The risk of not detecting material
noncompliance resulting from fraud is higher than for that resulting from enor, as fraud may involve
collusion, forgery, intentional omissions, misrepresenta.tions, or the ovenide of intemal 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 City of Cleveland,Tennessee's compliance with the
requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, 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 enor, and design
and perform audit procedures responsive to those risks. Such procedures include exaxnining, on a
test basis, evidence regarding the City of Cleveland,Tennessee'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 City of Cleveland, Tennessee'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 City of Cleveland,
Tennessee'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 sign�cant 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 intemal 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 sign�cant deficiency in internal control
over compliance is a deficiency,or a 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 weakness in
intemal control over compliance,yet important enough to merit attention by those charged with governance.
-242-
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 in intemal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
internal conirol over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance 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.
Report on Schedule of Egpenditures of Federal Awards Required by the Uniform Guidance
We have audited the financial statements of the governmental activities,the business-type activities, each
major fund, and the aggregate remaining fund information of the City of Cleveland, Tennessee, as of and
for the year ended June 30, 2022, and the related notes to the fmancial sta.tements, which collectively
comprise the City of Cleveland,Tennessee's basic fmancial statements.We issued our report thereon dated
January 20, 2023, which contained unmodified opinions on those financial statements. Our audit was
performed for the purpose of forming opinions on the fmancial statements that collectively comprise the
basic financial statements. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by the Uniform Guidance and is not a required part of the basic
financial statements. Such information is the responsibility of management and was derived from and
relates directly to the underlying accounting and other records used to prepare the basic fmancial statements.
The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepaxe the basic financial statements or to
the basic financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United Sta.tes of America.In our opinion,the schedule of expenditures
of federal awards is fairly stated in all material respects in relation to the basic fmancial statements as a
whole.
��d�� �,�e���,�, Pu.�
WEDGEWOOD ACCOUN'TING,PLLC
Certified Public Accountants
January 20,2023 �
-243 -
CITY OF CLEVELAND,TENNESSEE
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended June 30,2022
A. SLAVIlVIARY OF AUDIT RESULTS
1. The auditors'report expresses an unmodified opinion on the financial statements of the City of
Cleveland,Tennessee.
2. The audit of the financial statements of the City of Cleveland,Tennessee,disclosed one significant
deficiencies in internal control. This deficiency was not considered to be a material wealrness.
3. The audit disclosed one instance of noncompliance that was material to the financial statements.
4. No significant deficiencies relating to the audit of the major federal award programs were reported in the
Report on Compliance With Requirements Applicable to Each Major Program and Intemal Control
Over Compliance in Accordance with the Uniform Guidance.
5. An unmodified opinion was issued on compliance for major programs.
6. The audit revealed no fmdings that were required to be reported in accordance with 2 CFR 200.516(a).
7. The programs tested as major programs included:
CFDA#
Child Nutrition Cluster:
School Breal�ast Program 10.553
National School Lunch Program 10.555
Summer Feed Program 10.559
CDBG Entitlement Grants Cluster 14.218
HOME Investment Partnership Program 14.239
Highway Planning and Construction Cluster 20.205
COVID 19-Recovery Grants 21.019
Special Education Cluster:
Special Educarion-Grants to States 84.027
Special Education-Preschool Grants 84.173
Elementary and Secondary School Emergency Relief 84.425 -
COVID 19-Epidemiology and Laboratory Capacity 93.323
8 The threshold for distinguishing Types A and B programs was$750,000.
9 The City of Cleveland,Tennessee,was not determined to be a low-risk auditee.
-244-
B. FINDTNGS-FINANCIAL STATEMENT AUDIT
SIGNIFICANT DEFICIENCIES
2022-001 Budget Violation
Condition: In the School Food Service Fund actual expenditures exceeded budgeted by$280,830.
Budget Actual
School Food Service Fund 3,235,712 3,516,542
Criteria:Fund expenditures cannot exceed amounts budgeted by the government.
Effect: Unauthorized expenditures were incurred by the government.
Recommendation: Management should take steps to make sure that actual expenditures
do not exceed budgeted amounts.
Response: Management realized before yeaz end that actual expenditures were going to
exceed budgeted amounts,but was not able to process budget amendments before year end.
Steps will be taken in the future to ensure that actual expenditures do not exceed budgeted amounts.
C. FINDINGS AND QUESTIONED COSTS-MAJOR FEDERAL AWARD PROGRAMS AUDIT
NONE
-245 -
CITY OF CLEVELAND,TENNESSEE
SUNIMARY SCHEDULE OF PRIOR YEAR FINDINGS
For the Year Ended June 30,2022
A. FINANCIAL STATEMENT AUDIT
Finding 2021-001 was repeated in the current year finding 2022-001.
B. MAJOR FEDERAL AWARD PROGRAMS AUDIT
Finding 2021-002 was not repeated for the current year. Timesheets were maintained
to support billing for employee salaries in the Ml'O fund.
Finding 2021-003 was not repeated for the current year. Contracts were updated to
include the proper wording.
-246-
�� ��,���
��
Shawn McKay -
Assistant City Manager/CFO '`�`` Municipal Building
smckay@clevelandtn.gov 190 Church Street, N.E.
Phone (423)472.4551 CLEVELAND P•O. Box 1519
Fax(423) 559.3302 TE N N E 55 E E Cleveland, Tennessee 37364-1519
�,��._
CORRECTIVE ACTION PLAN
FINANCIAL STATEMENT FINDINGS:
SIGN�ICANT DEFICIENCIES
2022-001 Budget Violation
Condition: In the School Food Service Fund actual expendiiures exceeded budgeted
expenditures.
Budget Actual
School Food Service Fund 3,235,712 3,516,542
Criteria:Fund expenditures cannot exceed amounts budgeted by the government.
Effect: Unauthorized expenditures were incurred by the government.
Recommendation: Management should take steps to make sure that actual expenditures
do not exceed budgeted amounts.
Response: Management realized before year end that actual expenditures were going to
exceed budgeted amounts,but was not able to process budget amendments before year end.
Steps will be taken in the future to ensure that actual expenditures do not exceed budgeted amounts.
Name of Contact Person: Shawn McKay,Assistant City Manager/CFO
Anticipated Completion Date:Immediate
Respectfully submitted,
,�"" "- �'�
Shawn McKay,Assistant City Manager/CFO
City of Cleveland,Tennessee
-247-