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HomeMy WebLinkAboutCity of Brecksville - Public Financial Report n��n 11■■11 ■■11 ■11 " 1 � � � � 1 ��� BREc�SV1LLE .-, � � � � - _ ��� �, - , �; � , ; � � � � _.,.�. �:,i�� : f' . .- _ ycl ;- '%,�.. 1 ,� *^ � ,�� 4� . � '+ r � t1���� � ��'{ �� i �� � f' R't Y�, i � ���.� k�. � � 4 v�1^��y���r�t+��/ ��"Y0.".'':��P+r'�''r rl�,� •;y���i�. .: :;%'•�1��p �'r� _ \'�i^�_ e���.�"�l%� �. 1 � .r' � � '� � i,dH/CF `f JP�P ;s,...v. 'r' ��'/ � i��`�i i i� ` ��/ I ^ � ,� , , 7�p,n1 , � � __�:=� �t : _=�- �` : � = �, , i ; ��7����i� - a_- , � ' ' . . . I � � I � 1 1 1 ' 1 ' 1 1 ' 1 ' 1 � ' ' 1 ' � Brecksville Cit Council v � � � . � , � � �--� � � , . Laura Redinger, Dominic Caruso President Vice-President /"� �i' � � +� '' � -,� . �_...._ , �. Ie,�), 1' 1 1� if.�_ 1 A.J. Ganim Daryl Kingston Ann Koepke ��� ,� r, F � �- ; � � ; , �.: ;� �`.�-� � �� ;� _ � ` �:,��� - � � :�, ; !� ` � / Beth Savage Brian Stucky CITY OF BRECKSVILLE, OHIO ANNUAL COMPREHENSIVE FINANCIAL REPORT FOR THE YEAR ENDED DECEMBER 31,2022 ISSUED BY THE DEPARTMENT OF FINANCE Laura Starosta, CGFM, CPFO FINANCE DIRECTOR City of Brecksville, Ohio Annual Comprehensive Financial Report For the Year Ended December 31, 2022 Table of Contents I. Introductory Section Tableof Contents................................................................................................................................... i Letterof Transmittal...............................................................................................................................v GFOA Certificate of Achievement......................................................................................................xii Listof City Officials...........................................................................................................................xiii OrganizationalChart..........................................................................................................................xiv II. Financial Section Independent Auditor's Report................................................................................................................1 Management's Discussion and Analysis................................................................................................5 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position........................................................................................................16 Statementof Activities............................................................................................................17 Fund Financial Statements: Balance Sheet—Governmental Funds.....................................................................................18 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities .............................................................................20 Statement of Revenues, Expenditures and Changes in Fund Balances—Governmental Funds.................................................................................21 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(Non-GAAP Basis) and Actual: GeneralFund.....................................................................................................................24 FireDepartment Fund.......................................................................................................25 Statement of Fund Net Position—Proprietary Fund ...............................................................26 Statement of Revenues, Expenses and Changes in Fund Net Position—Proprietary Fund....27 Statement of Cash Flows—Proprietary Fund..........................................................................28 - i- City of Brecksville, Ohio Annual Comprehensive Financial RepoYt For the Year Ended December 31, 2022 Table of Contents (continued) Statement of Fiduciary Net Position—Fiduciary Funds..........................................................29 Statement of Changes in Fiduciary Net Position—Fiduciary Funds.......................................30 Notes to the Basic Financial Statements........................................................................................31 Required Supplementary Information: Schedule of the City's Proportionate Share of the Net Pension Liability— Ohio Public Employees Retirement System—Traditional Plan—Last Nine Years .........94 Schedule of the City's Proportionate Share of the Net Pension Asset— Ohio Public Employees Retirement System—Combined Plan—Last Five Years...........96 Schedule of the City's Proportionate Share of the Net OPEB AssetlLiability— Ohio Public Employees Retirement System—Traditional Plan—Last Six Years............98 Schedule of the City's Proportionate Share of the Net Pension Liability— Ohio Police and Fire Pension Fund—Last Nine Years...................................................100 Schedule of the City's Proportionate Share of the Net OPEB Liability— Ohio Police and Fire Pension Fund—Last Six Years.....................................................102 Schedule of the City's Contributions—Ohio Public Employees Retirement System—Last Ten Years..............................................................................104 Schedule of the City's Contributions—Ohio Police and Fire Pension Fund—Last Ten Years......................................................................................106 Notes to Required Supplementary Information...........................................................................108 Combining and Individual Fund Statements and Schedules: Combining Statements—Nonmajor Governmental Funds: FundDescriptions..................................................................................................................114 Combining Balance Sheet—Nonmajor Governmental Funds...............................................117 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Governmental Funds..............................................................118 Combining Balance Sheet—Nonmajor Special Revenue Funds...........................................119 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Special Revenue Funds..........................................................122 Combining Balance Sheet—Nonmajor Debt Service Funds.................................................125 -ii - City of Brecksville, Ohio Annual Comprehensive Financial RepoYt For the Year Ended December 31, 2022 Table of Contents (continued) Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Debt Service Funds................................................................126 Combining Balance Sheet—Nonmajor Capital Projects Funds............................................127 Combining Statement of Revenues, Expenditures and Changes in Fund Balances—Nonmajor Capital Projects Funds...........................................................129 Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance/Fund Equity—Budget(Non-GAAP Basis) and Actual: Major Funds: GeneralFund.........................................................................................................................132 FireDepartment Fund...........................................................................................................139 General Obligation Bond Retirement Fund...........................................................................140 General Municipal Improvement Fund.................................................................................141 Buildings and Improvements Fund.......................................................................................142 Road Improvements Fund.....................................................................................................143 Nonmajor Funds: Motor Vehicle License Tax Fund..........................................................................................144 Street Repair and Maintenance Fund....................................................................................145 StateHighway Fund..............................................................................................................146 CommunityCenter Fund.......................................................................................................147 Road Maintenance Fund........................................................................................................148 Federal Equitable Sharing Fund............................................................................................149 Enforcement and Education Fund.........................................................................................150 CourtComputerization Fund.................................................................................................151 Natureworks Grants Fund .....................................................................................................152 RecyclingDemo Fund...........................................................................................................153 TreePlanting Fund................................................................................................................154 LawEnforcement Fund.........................................................................................................155 Law Enforcement Mandatory Drug Fund.............................................................................156 PolicePension Fund..............................................................................................................157 Peace Officer Training Fund.................................................................................................158 Local Fiscal Recovery Fund..................................................................................................159 OneOhio Opioid Settlement Fund.........................................................................................160 Special Assessment Bond Retirement Fund..........................................................................161 IssueII Fund..........................................................................................................................162 Recreation Expansion Fund...................................................................................................163 Public Utility Improvement Fund..........................................................................................164 Fire Ambulance Capital Fund...............................................................................................165 Police Station Building Fund................................................................................................166 Recreation Facilities Expansion Fund...................................................................................167 SelfInsurance Fund...............................................................................................................168 Cemetery Endowment Fund..................................................................................................169 - iii - City of Brecksville, Ohio Annual Comprehensive Financial Report For the Year Ended December 31, 2022 Table of Contents (continued) III. Statistical Section Statistical Section Table of Contents......................................................................................S1 Net Position by Component—Last Ten Years....................................................................... S2 Changes in Net Position—Last Ten Years............................................................................. S4 Fund Balances, Governmental Funds—Last Ten Years ........................................................ S8 Changes in Fund Balances, Governmental Funds—Last Ten Years.................................... S 10 Assessed Valuation and Estimated Actual Values of Taxable Property—Last Ten Years ................................................... S 12 Property Tax Rates—Direct and Overlapping Governments—Last Ten Years................... S 14 Property Tax Levies and Collections—Last Ten Years....................................................... S 16 Principal Real Property Taxpayers—2022 and 2013 ........................................................... S 18 Income Tax Revenue Base and Collections—Last Ten Years............................................. S 19 Income Tax Filers by Income Level—Tax Years 2021 and 2012........................................ S20 Ratios of Outstanding Debt to Total Personal Income and Debt Per Capita—Last Ten Years........................................................................... S21 Ratio of General Obligation Bonded Debt to Estimated True Value of Taxable Property and Bonded Debt per Capita—Last Ten Years................................. S22 Computation of Direct and Overlapping Debt Attributable to Governmental Activities..... S23 Legal Debt Margin Information—Last Ten Years............................................................... S24 Demographic and Economic Statistics—Last Ten Years..................................................... S26 Principal Employers—Current Year and Nine Years Ago................................................... S27 Full-Time Equivalent City Government Employees by Function/Program—Last Ten Years......................................................................... S28 Capital Assets Statistics by Function/Program—Last Ten Years........................................ S30 Operating Indicators by Function/Program—Last Ten Years.............................................. S32 -iv- JERRY N.HRUBY,MAYOR AND SAFETY DIRECTOR CITY COUNCIL LAURA C.REDINUER,PRESIDENT DOMINIC J.CARUSO,V[CE PRESIDENT ARTHliR J.GANIl�i DARYl.J.I4NGSTON ANN M.I�OEPKE EI,IZABETH A.S�VAGE BRIr�N R.STUCKY TAMMY L.TABOR,CLERIS June 26, 2023 To Members of Brecksville City Council and The Citizens of Brecksville, Ohio This report enables the City to comply with Ohio Administrative Code Section 117-2-03 (B), which requires reporting on a GAAP (Generally Accepted Accounting Principles)basis, and Ohio Revised Code Section 117.38 which requires cities reporting on a GAAP basis to file an annual report with the Auditor of State within 150 days of fiscal year end. Management assumes full responsibility for the completeness and reliability of the infarmation contained in this report, based upon a comprehensive framework of internal control that it has established for this purpose. Because the cost of internal control should not exceed the anticipated benefits, the objective is to provide reasonable, rather than absolute assurance that the financial statements are free of any material misstatements. State statutes require the City of Brecksville (the City) to be subjected to an annual examination by the Auditor of State. Either the Auditor of State of Ohio or, if the Auditor permits, an independent public accounting firm conducts these audits. The Auditor of State rendered an opinion on the City's �nancial statements as of December 31, 2022. The Independent Auditor's Report on the basic financial statements is included in the financial section of this report. Management's discussion and analysis (MD&A) immediately follows the Independent Auditor's Report and provides a narrative introduction, overview and analysis of the basic financial statements. The MD&A complements this letter of transmittal and should be read in conjunction with it. Profile of the Government The City of Brecksville was founded in 1811. It was incorporated as a village under the laws of the State of Ohio in 1921 and attained City status in 1960 by virtue of its population exceeding 5,000. It is located in Cuyahoga County in northeastern Ohio, in the heart of rolling woodlands approximately fifteen miles south of the City of Cleveland. The City covers 19.54 square miles. In the year 2022, the U.S. Census Bureau reported that Brecksville had a population of 13,539, down 0.11 percent from 13,554 in 2013. The City of Brecksville operates under and is governed by its Charter, first adopted by the voters on November 6, 1956 and amended from time to time. The Charter provides for a Mayor-Council form of government. The nine-member Charter Review Commission reviewed the Charter in 2013. Ten proposed charter changes were placed on the November ballot with o� nine of them passing. A � Legislative authority is vested in a seven-member City Council which is elected at ������ large and whose terms are staggered. Four Council members are elected at each :�;��;;::':::SVILLE regular municipal election in November of odd numbered years. Of the four BREC� , ,,,rv,��,�„ elected, the three receiving the highest number of votes serve a term of four years Ao�"' ^���°r°�T�W°'"m and the fourth serves a term of two years. The Council fixes compensation of City 9069 Brecksville Road•Brecksville,Ohio 44141 • (440)526-2609 •Fax: (440)526-8708 -v- officials and employees and enacts ordinances and resolutions relating to City services, tax levies, the appropriation and borrowing of money, the licensing and regulation of business and the trades, and other municipal purposes. The presiding officer is the President who is elected by the Council far a one-year term. The City of Brecksville's chief executive officer is the Mayor who is elected by the voters for a four-year term. The Mayar appoints, subject to approval of Council, the directors of the City's departments except for the Director of Finance, the Law Director and the Clerk of Council, all of whom are appointed by Council. He is the chief conservator of the peace, oversees the enforcement of all laws and ordinances, and executes all contracts, conveyances, evidences of indebtedness and all other instruments to which the municipality is a party. He is the official and ceremonial head of the City. The Mayor is also the Safety Director and presides over the Mayor's Court. As Mayor serving my ninth consecutive term after being re-elected in the November 2019 general election, I am the only Brecksville mayor to be elected to nine consecutive four-year terms since Brecksville became a village in 1921. The City's Service Department works hard to respond to the needs of the residents, providing curbside rubbish and recycling collection, street maintenance, snow removal and maintenance of City recreational facilities, among other services. The Department is responsible for an annual, aggressive road repair and maintenance program. Security of one's person and property is foremost on the minds of our full-time Police Department and Fire Department with full-time paramedic service. Brecksville takes pride in its low crime rate and rapid response by both police and fire units. Our safety departments are constantly updating training, procedures and equipment to provide effective services to our City. Water service is provided to City residents by the City of Cleveland and sewer services are provided by the Northeast Regional Sewer District. Certain water lines and sewer lines are owned and maintained by the City. Pvofile of the City We're proud of our City's beautiful, safe and uncongested environment. We are a community that is "building our future with respect for our past," a dynamic idea that combines forward thinking with our Western Reserve heritage which is evident not only in our prevailing architectural style but in our business-friendly philosophy. Residents have a variety of nearby transportation options. By automobile or by connections through downtown Cleveland on the Regional Transit Authority bus and rail lines, one can reach all areas of Cuyahoga County conveniently. State Routes 21 and 82 bisect Brecksville and there is easy access to interstate highways. I-77 and I-80,which is the Ohio Turnpike,both crisscross Brecksville. I-480, an east- west interstate is just 6 miles north of Brecksville. Amtrak cross-country rail service is available in downtown Cleveland and Hopkins International Airport is located about fifteen miles from Brecksville. Entertainment abounds just a short distance away for residents of Brecksville. In downtown Cleveland, the Cleveland Browns of the National Football League play in their spectacular First Energy Stadium. Progressive Field is the home of Major League Baseball's Cleveland Guardians. The Cleveland Cavaliers of the National Basketball Association, play at Rocket Mortgage Fieldhouse which is also a venue for concerts by majar recording artists, ice shows, and a variety of other professional attractions. Cleveland State University's Wolstein Center is home to the Cleveland State University Vikings and even more concerts and shows. Just a short drive from Brecksville through the Cuyahoga Valley National Park, Blossom Music Center is the summer home of the Cleveland Orchestra and a venue for the biggest music stars touring the planet. -vi - Residents have access to many cultural attractions such as the world-famous Cleveland Orchestra at Severance Hall, The Cleveland Museum of Art, The Great Lakes Science Center and the Rock n' Ro11 Hall of Fame and Museum. There are unique shopping areas such as Tower City Center and nightlife with dining in the Warehouse District and dining and entertainment on East 4th Street downtown and a concert venue in the "Flats" along the Cuyahoga River. Cleveland's downtown is a center of activity for all ages and just minutes from Brecksville. Metro Health, Marymount, and Parma Community General Hospitals serve as emergency care facilities for our residents and visitors who require use of our Fire Department's ambulances and staff of professional paramedics and EMTs. The Greater Cleveland area is known worldwide for excellence in health care including the Cleveland Clinic and University Hospitals who supplement health care provided by nearby community hospitals and immediate care centers. Brecksville's wooded hills and ravines that lace the area help define its neighborhoods. As a result, every resident is close to natural beauty that has always been a hallmark of Brecksville living. Many neighborhoods are located next to the Brecksville Reservation of the Cleveland Metroparks and the 33,000 acre Cuyahoga Valley National Park. Brecksville is unique among Cuyahoga County communities because one-third of the City is park land. Located within the Cuyahoga Valley National Park is the Ohio Canal National Heritage area. The Brecksville Reservation of the Cleveland Metroparks offers facilities for picnicking, softball, harseback riding, golf, hiking and cross-country skiing. A paved all-purpose fitness trail offers walking, biking, running or strolling by the beautiful scenery. Two ski areas are close by. Brecksville was named a Tree City USA for the 28th consecutive year in 2022. Housing in Brecksville offers a mix of sizes, styles and price ranges with colonial and Western Reserve styles predominating. Despite its proximity to major metropolitan attractions, Brecksville maintains its quiet, suburban environment. Retail shopping is concentrated downtown near the Square, and shopping malls in nearby communities complement local merchants. The City of Brecksville provides many programs for all ages through its Recreation Department. Baseball, basketball, volleyball, swimming, golf, tennis, spinning and exercise classes, crafts and day camps are just some of the many programs for family fun, fitness and recreation. Recreational facilities include the 160 acre Blossom Hill recreational area with its playground,pavilion, baseball fields, comfort station, safety town and a state of the art artificial turf soccer and lacrosse field. The City is in the final stages of constructing a field house on the property,which will connect to a new elementary school being constructed by the Brecksville-Broadview Heights City School District. At City Hall there are three lighted baseball fields and three lighted tennis courts. The 75,004 square foot Community Center houses the Recreation Department as well as a field house, indoor lap pool, indoor aquatics center, outdoor aquatics center, elevated running track, youth game room, large cardio-vascular room and a large weight room, whirlpool spa, saunas and a dividable community room with facilities for meetings and catering. Brecksville's, 29,000 square foot Human Services Center attracts children less than one year old to folks in their 90s. The second floor of the beautiful building houses the Community Center's vast cardio- vascular fitness section. Headquartered in the Human Services Center is the Department of Human Seroices, which maintains many programs including snow removal and a food bank for low income seniors. It coordinates the local Meals on Wheels program and provides free blood pressure screenings. The Human Services Center has a 30 by 50 foot warm water therapy exercise pool on the lower level and a full service kitchen with an accompanying large gathering area seating 125. The serene Kay Broughton center courtyard complete with tables, benches, and fountain, provide the opportunity for quiet book reading or a lively game of cards surrounded by beautiful plantings. A quality education for our children is provided by the Brecksville-Broadview Heights City School District. Cleveland Magazine routinely ranks the district as one of the top suburban districts in the area. Brecksville is also home to the Cuyahoga Valley Career Center, which is the area's vocational school for high school students and additionally provides a multitude of adult education programs for area residents. -vii- Economic Development The City is a business advocate and a connector. It helps companies navigate site relocation and retention by uniting all the necessary elements to assure that the City is an optimum business destination. The City's efforts in assisting companies has resulted in significant development projects siting in the City. Some of the current business development projects within the City are described as follows. To facilitate future economic development, the City created the Brecksville Community Improvement Corporation (the CIC). The CIC is a corporation certified by the State, separate from the City, with its own code or regulations and directors. The CIC can be used to facilitate private entity borrowing or to hold properties, as approved by the City, for use in enhancing business opportunities. In 2018, the United States Department of Veterans Affairs (the VA) conveyed to the City a 103-acre site near the intersection of Interstate Highway 77 and the Ohio Turnpike(Interstate 80). On this site, the VA had operated a veterans' hospital for more than 50 years,prior to its closure in 2012. Under its agreement with the VA and the State's Historic Preservation Office, the City agreed that, as a part of a proposed commercial redevelopment of the site, land for a memorial park commemorating the site as a former VA hospital would be set aside. In its efforts to redevelop the site, the City subsequently transferred the 103 acres to the CIC. Following the land transfer, the City and the CIC entered into an agreement with a private developer setting forth a development plan wherein the developer is obligated to purchase portions of the site from the CIC in multiple phases. Furthermore, the developer demolished the former hospital structures and remediated those sites at its own cost. The developer is further required to proceed with a phased-in mixed-use development that may include stores, restaurants, apartments, hotels, hospitals, light manufacturing plants,warehouses, offices, and laboratories. The City entered into a development agreement with the Sherwin-Williams Company during 2021. Approximately 45 acres of the Valor Acres site and 73 acres of adjacent real property will be the site of their new research and development project. According to the development agreement, the project will create approximately 680 new jobs with an estimated payroll of$55,760,000. The City entered into a job creation income tax incentive agreement during 2021 to cause the company to commit to constructing the project by providing a 15-year incentive equal to 35 percent of the first $55,760,000 of annual payroll taxes of employees of the company and its affiliates, as well as 40 percent of annual payroll taxes of employees of the company and its affiliates in excess of said amount. As Sherwin-Williams has moved forward with their development, they have provided the City with a revised count of approximately 900 new jobs. This project also includes a tax increment financing agreement as authorized by City Council. During 2021, the City also entered into a development agreement with DiGeronimo Development LLC and VA Land LLC to provide far the construction of a mixed use development on approximately 25 acres of the Valor Acres site. It anticipates a mixed-use development, including one or more commercial office buildings with at least 150,000 combined square feet of space. Additionally during 2021, the City entered into a job creation incentive agreement with DiGeronimo Development LLC causing the company to commit to constructing the project in the City by providing a 15-year job creation income tax incentive equal to 35 percent of the first $22,500,000 of annual payroll taxes of employees of the company and its affiliates and 40 percent of annual payroll taxes of employees of the company and its affiliates in excess of such amount. This project also includes a tax increment financing agreement as authorized by City Council. DiGeronimo Development LLC announced that it will relocate its corporate headquarters to the Valor Aces site in 2024. -viii- A subdivision agreement with DiGeronimo Development LLC was entered into on adjacent land to the north of the Valor Acres site during 2021. This project includes a tax increment financing agreement as authorized by City Council. The agreement includes a proposed residential plan of 238 units that consists of 157 units in a multi-family apartment building, 28 townhouse apartments in five separate buildings, 17 townhouse units in three separate buildings, 32 attached homes, and four single family homes. Approximately 21 acres of the Valor Acres site remains held by the CIC for future development. The City entered into one of its largest economic development projects with the MetroHealth System, a County hospital and health provider system with numerous locations around northeast Ohio. In 2016, the MetroHealth System opened its Brecksville Health and Surgery Center("Center"), a$48,000,000, 63,000 square foot facility, on about 21 acres near the intersection of State Routes 77 and 82, overlapping with the City of Broadview Heights. The Center offers both primary and specialty care and contain medical office space, diagnostic and laboratory facilities, a retail pharmacy, a compounding pharmacy, an emergency room, and an ambulatory surgery center. Specialty care provided in the medical offices including cardiology, dermatology, podiatry, gastroenterology, neurology, OB/GYN, ophthalmology, orthopedics, and radiology services. Lubrizol Advanced Materials, Incorporated is one of the City's largest and most established employers. Lubrizol is a technology-driven, global company that combines complex specialty chemicals to optimize its products while reducing environmental impact. Lubrizol products include advanced specialty polymers, polymer-based additives, and chemical additives used in everyday consumer and industrial applications. The company has a complex of buildings on a 165-acre site in the City, serving the company's global operations. Lubrizol completed a $30,000,000 project to expand and renovate its facilities on the site in 2017. Accomplishments The City is very pleased that Moody's Investors Services continues to rate our City a bond rating of Aal. This rating attests to our strong economic health and prudent fiscal management. The City of Brecksville's Finance Department was proud to receive its 32nd consecutive, Certificate of Achievement for Excellence in Financial Reporting for its Annual Comprehensive Financial Report for the Fiscal Year ended December 31, 2021. It was also the 16th year that the Finance Department produced its award winning Popular Annual Financial Report. The City completed the construction of an addition to the indoor pool as well as the removal and construction of a replacement outdoor aquatics faciliry. These facilities were opened in the spring of 2021 and final items were completed in 2022. During 2019, the City entered into a construction agency agreement with the Brecksville-Broadview Heights City School District(School District) as construction agent. This agreement will provide for the design, development, acquisition, construction, installation, equipping and improvement of a portion of the Blossom Hill Park property to construct a new field house which shall be adjacent to the proposed elementary schooL The new field house is operational as final items are being completed during 2023. Along with the two new facilities, a shared use and management agreement has been entered into, which will allow the use of portions of each building between the two entities. In exchange for conveying approximately 25 acres of the Blossom Hill property to the School District, the School District has conveyed to the City three properties: the old Central School property and the Comstock property adjacent to Central School totaling approximately 3.6 acres, which will be held until a future use is determined and approximately 10.6 acres of land on Stadium Drive to be utilized for recreational activities. -1X- The City completed various capital projects, which are discussed in the Management's Discussion and Analysis. 2023 Priorities: • Completion of the final construction punch-list for the field house at Blossom Hi11 Park. • Discussion and design of remodel of City Hall will continue. Space previously used by the Police Department will be available for repurpose and renovation and will allow for the reconfiguration of all of City Hall. • The City has budgeted various sanitary and storm sewer projects for 2023 as part of the City's on- going commitment to improving infrastructure. This includes the Chippewa Road sanitary and storm sewer project and the Glenwood sanitary and storm sewer project. � During 2022, the City and the Ohio Department of Transportation are currently under contract for construction of the Interstate 77 and Miller Road interchange project. This area has long been targeted for improvements as it will provide greater access to land designated for future economic development. The planned work will consist of adding a northbound exit ramp to Miller Road, adding a southbound entrance ramp to Interstate 77, adding an auxiliary lane between the new southbound entrance ramp and the existing Interstate 80 exit ramp, widening of Miller Road, and improvements to the Miller Road and Southpointe Parkway intersection. Long-Term Financial Planning As part of the annual budget process, the Mayor and City Council review five year capital budget projections. Based on these estimates, financial strategies are developed to maximize services supplied and infrastructure improvements desired. This budget is modified regularly as new projects present themselves and priorities change. The City continues to adhere to a pay as you go philosophy as it relates to small projects and equipment purchases. By only borrowing for large projects and keeping debt levels low, it provides the City the opporiunity to borrow in low interest environments. A summary of the 2022 borrowings can be found in the MD&A and the notes to the basic financial statements. Relevant Financial Policies By City ordinance, $3,020,004 of total income tax proceeds are credited to the following capital projects funds: $1,700,004 to the buildings and improvements fund, $360,000 to the road improvements fund, and $960,000 to the general municipal improvement fund,with the remainder credited to the general fund. There are also ordinances in place to allocate 25 percent of all building permit fees collected into the recreation expansion fund along with corporate membership fees designated specifically for community center improvements. Sanitary sewer tap-in, septic conversion, and sanitary repair fees are deposited into the public utility improvement fund and used for utility services. An ordinance is also in place to allocate water connection permit fees to the water system maintenance and repair fund and the water system bond retirement fund based on a legislated schedule. These funds shall be used for future improvements of the City's water distribution system and any necessary debt funding thereof. -x- The compensated absence, workers' compensation, and hospitalization funds are all used to accumulate funds which can be used during times of higher expenditures or lower revenues. They are designed to smooth cash inflows and outflows in other operating funds. On a generally accepted accounting principles (GAAP)basis,the workers' compensation fund was allocated back into funds which contributed to it. The compensated absences fund was a part of the general fund on a GAAP basis. On a GAAP basis, the hospitalization fund is presented as an internal service. Awards and Acknowledgements The Government Finance Officers Association of the United States and Canada (GFOA) awards a Certificate of Achievement for Excellence in Financial Reporting to those governmental entities whose Annual Comprehensive Financial Report is easily readable, efficiently organized, and conforms to GFOA reporting standards. Such a report must satisfy both generally accepted accounting principles (GAAP) as well as applicable legal requirements. The City of Brecksville received this honor for its Annual Comprehensive Financial Report for the year ended December 31, 2021. A Certificate of Achievement is valid for a period of one year only. The City of Brecksville believes the current report conforms to the Certificate of Achievement Program requirements, and has submitted it to the GFOA to determine its eligibility for another Certificate of Achievement. Successful preparation of a report of this scope depends upon the dedicated contribution of many employees. The sincere appreciation of those primarily responsible for its completion is extended to all contributors but especially to those employees in the Department of Finance who have spent their time and energy on various parts of the project and to Local Government Services for their assistance in helping the City prepare this report in conformity with generally accepted accounting principles (GAAP) and the requirements of the Government Finance Officers Association. In addition, we would like to thank Brecksville City Council, without whose positive leadership and encouragement,the preparation of this report would not have been possible. In closing, we would like to thank the residents and taxpayers of the City of Brecksville for entrusting us with the administration of their local government. Respectfully submitted, . Hru Mayor Laura J. Starosta, CGFM, CPFO Director of Finance - xi- � Government Finance Officers Association Certificate of Achievement for Excellence in Financial Reporting Presented to City of Brecksville Ohio For its Annual Comprehensive Financial Report For the Fiscal Year Ended December 31, 2021 ��i�u�,e�w,. P• ���er�%�� Executive Director/CEO -Xll- City of Brecksville, Ohio City Offzcials ELECTED OFFICIALS Mayor and Safety Director................................................................ Jerry N. Hruby President of Council.....................................................................Laura C. Redinger Vice-President of Council............................................................Dominic J. Caruso Council Member............................................................................. Arthur J. Ganim Council Member...........................................................................Daryl J. Kingston Council Member..............................................................................Ann M. Koepke Council Member.......................................................................Elizabeth A. Savage Council Member..............................................................................Brian R. Stucky APPOINTED OFFICIALS Director of Finance.........................................................................Laura J. Starosta Police Chief................................................................................ Stanton A. Korinek Fire Chief....................................................................................Nikola N. Zamiska Service Director.............................................................................Ronald J. Weidig Director of Purchasing...................................................................Rebecca A. Riser Chief Building Official..................................................................Scott M. Packard Clerk of Courts.........................................................................Shelley A. Kazimore Director of Recreation................................................................... Rachele K. Engle Director of Law..................................................................................David J. Matty Prosecutor............................................................................................Lisa A. Sabol City Engineer...................................................................................Gerald M. Wise Clerk of Council.............................................................................Tammy L. Tabor Director of Human Services........................................................ Steven L. 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' � ' ..! • �ii: • i-.'* u1 1� � • Q � -- f �� I y �� �, �L I _' . ^�+y t-,}'} -r` \ `y � . /' .,. . � ,�,�, �. y -, ' . ` f / ' � y � . . , ' �7'""S' t` - �i .t' �` � +a.��A . i� . - -_ ,`''�� .'i.��ir, _ •.,,� � � • ' •� ~ ` • � � b � . .a — � �_ � � i,� O H I O A U D I TO R O F S TAT E �� r�;�r�`�°�� �r'���r Columbus,Ohio =�3215 C��ntactli s(a;<�hi<��iLiditor.�>v KEITHFABER ;g���>> ���-��37C� INDEPENDENT AUDITOR'S REPORT City of Brecksville Cuyahoga County 9069 Brecksville Road Brecksville, Ohio 44141 To the City Council: Report on the Audit of the Financial Statements Opinions We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Brecksville, Cuyahoga County, Ohio (the City), as of and for the year ended December 31, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the accompanying financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Brecksville, Cuyahoga County, Ohio as of December 31, 2022, and the respective changes in financial position and, where applicable, cash flows thereof and the respective budgetary comparisons for the General Fund and the Fire Department Fund for the year then ended in accordance with the accounting principles generally accepted in the United States of America. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City, 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. Emphasis of Matter As discussed in Note 26 to the financial statements, the financial impact of COVID-19 and the continuing emergency measures may impact subsequent periods of the City. We did not modify our opinion regarding this matter. Efficient • Effective • Transparent 1 City of Brecksville Cuyahoga County Independent Auditor's Report Page 2 Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial 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 error. 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's ability to continue as a going concern for twelve months beyond the financial 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 are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and GovernmentAuditing 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 financial statements. • obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • conclude whether, in ourjudgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. 2 City of Brecksville Cuyahoga County Independent Auditor's Report Page 3 Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis and schedules of net pension and other post-employment benefit liabilities and pension and other post-employment benefit contributions be presented to supplement the basic financial statements. 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 financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managemenYs responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The combining and individual nonmajor fund financial statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other 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 financial statements and schedules 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 financial report. The other information comprises the introductory and statistical sections but does not include the basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do not cover the other information, and we do not express an opinion or any form of assurance thereon. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists 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. 3 City of Brecksville Cuyahoga County Independent Auditor's Report Page 4 Other Reporting Required by GovernmentAuditing Standards In accordance with Government Auditing Standards, we will also issue our report dated June 26, 2023, on our consideration of the City's internal control over financial reporting and 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 financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with GovernmentAuditing Standards in considering the City's internal control over financial reporting and compliance. Gz�C� Keith Faber Auditor of State Columbus, Ohio June 26, 2023 4 City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited The discussion and analysis of the City of Brecksville's financial performance provides an overall review of the City's financial activities for the year ended December 31,2022. The intent of this discussion and analysis is to look at the City's financial performance as a whole. Readers should also review the transmittal letter,the basic financial statements, and the notes to the basic financial statements to enhance their understanding of the City's financial performance. Financial Highlights Key financial highlights for 2022 are as follows: • The assets and deferred outflows of resources of the City of Brecksville exceeded its liabilities and deferred inflows of resources by$112,380,052. This is an increase of$13,025,607 over last year's net position. • Total costs of all City services were $28,338,960 in 2022, a decrease of$1,980,685, or 6.53 percent, under 2021. This decrease can be attributed to decreases in legislative and executive and recreational activities expenses, offset by increased expenses of all other expense types from general inflation prices. Legislative and executive expenses in the general fund decreased from the prior year due to the decrease in deposits held payable from a large residential subdivision deposit being returned. Recreational activities decreased from 2021 due to expenses related to the field house project, which is currently in progress. • Total liabilities increased by $11,497,362 over 2021. This increase is due to an increase in general obligation bonds and tax increment financing revenues bonds from new issuances, offset by decreases in deposits held payable and net pension liability. The decrease of deposits held payable was caused by the return of a large deposit to DiGeronimo Development, LLC for a new development project for a residential subdivision and the decrease of the net pension liability was a result of changes in assumptions for benefits, contribution rates, and return on investments. • Total capital assets increased by$17,730,647 over 2021. There was an increase to additions exceeding deprecation and deletions. The largest portion of the current year additions consisted of the ongoing wark on the Interstate 77 and Miller Road interchange and Chippewa sanitary sewer projects. • The equiry in pooled cash and cash equivalents balance at the end of 2022, in the general fund of $11,056,359, represents 213 days of operating expenditures for the City and is a reflection of its on- going viability and its desire to protect the ability to provide future services. Using This Annual Financial Report This annual report consists of a series of financial statements and notes to those statements. These statements are prepared and organized so the reader can understand the City of Brecksville as a financial whole or as an entire operating entity. The statements provide a detailed look at the City's specific financial conditions. The statement of net position and statement of activities provide information about the activities of the whole Ciry,presenting both an aggregate view of the City's finances and a longer-term view of those assets. Major fund financial statements provide the next level of detail. For governmental funds, these statements tell how services were financed in the short-term as well as what dollars remain for future spending. The fund financial statements also look at the City's most significant funds with all other non-major funds presented in total in one column. - 5 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Reporting the City of Brecksville as a Whole Statement of Net Position and the Statement of Activities While this document contains information about the funds used by the City to provide services to our citizens, the view of the City as a whole considers all financial transactions and asks the question, "How did we do financially during 2022?" The statement of net position and the statement of activities answer this question. These statements include all (non-fiduciary) assets and deferred outflows of resources and liabilities and deferred inflows of resources using the accrual basis of accounting similar to the accounting method used by the private sector. This basis of accounting takes into account all of the current year's revenues and expenses regardless of when the cash is received or paid. These two statements report the City's net position and the changes in that net position. The change in net position is important because it tells the reader whether, for the City as a whole, the financial position of the City has improved or diminished. However, in evaluating the overall position of the City, non-financial information such as changes in the City's tax base and the condition of the City's capital assets also needs to be evaluated. The statement of net position and the statement of activities are divided into the following categories: • Assets • Deferred Outflows of Resources • Liabilities • Deferred Inflows of Resources • Net Position • Program Expenses and Revenues • General Revenues • Net Position Beginning of Year and End of Year Reporting the City of Brecksville's Most Significant Funds Fund Financial Statements A fund is a grouping of related accounts used to maintain control over resources segregated for specific activities or objectives. The Ciry of Brecksville uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the City's funds can be divided into three categories: governmental funds,proprietary funds, and fiduciary funds. The presentation of the City's major funds begins on page 18. Fund financial reports provide detailed information about the City's major funds based on the restrictions on the use of monies. The City has established many funds, which account for the multitude of services,facilities and infrastructure provided to our residents. However,these fund financial statements focus on the City's most significant funds. In the case of the City of Brecksville, the major funds are the general, fire department, general obligation bond retirement, general municipal improvement, buildings and improvements,road improvements, and capital urban redevelopment tax increment equivalents funds. Governmental Funds Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial 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 year. All City activities are reported in the governmental funds focusing on how money flows into and out of those funds and - 6 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited the balances left at year-end available for future spending. Our funds are reported using the modified accrual accounting method. The modified accrual method measures cash and all other financial assets expected to be readily converted to cash. The governmental fund statements provide a detailed short-term view of the City's general operations and the basic services it provides. Governmental fund information helps determine the level of financial resources that can be spent in the near future on residential services. Because the focus of governmental funds is narrower than that of the government-wide financial statements,it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. 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 the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate the comparison between governmental funds and governmental activities. Proprietary Fund The City maintains a proprietary fund. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City's various functions. The City's internal service fund accounts for medical and prescription drug self-insurance. The proprietary fund uses the accrual basis of accounting. Fiduciary Funds Fiduciary funds are used to account for amounts collected and distributed on behalf of another government or organization. Fiduciary funds are not reflected on the government-wide financial statements because the resources from these funds are not available to support the City's programs. These funds use the accrual basis of accounting. The City of Brecksville as a Whole Recall that the statement of net position pictures the City as a whole. Table 1 provides a summary of the City's net position for 2022 compared to 2021. Table 1 Net Position Governmental Activities Restated 2022 2021 Change Assets Current and Other Assets $61,264,637 $53,912,487 $7,352,150 Leases Receivable 1,682,892 1,215,201 467,691 Net Pension Asset 99,147 78,330 20,817 Net OPEB Asset 1,445,833 792,820 653,013 Capital Assets,Net 133,890,892 ll6,160,245 17,730,647 Total Assets 198,383,401 172,159,083 26,224,318 Deferred Outflows of Resources Asset Retirement Obligations 7,823 9,955 (2,132) Deferred Charges on Refunding 32,888 63,000 (30,112) Pension 5,077,187 2,662,525 2,414,662 OPEB 1,032,557 1,547,703 (515,146) Total DeferNed Outflows ofResources $6,150,455 $4,283,183 $1,867,272 (continued) - 7 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Table 1 Net Position(continued) Governmental Activities Restated 2022 2021 Change Liabilities Current and Other Liabilities $12,437,403 $8,238,193 ($4,199,210) Long-Term Liabilities Due Within One Year 1,890,540 1,689,559 (200,981) Due in More Than One Year: Net Pension Liability 13,982,527 17,843,569 3,861,042 Net OPEB Liability 1,723,354 1,715,333 (8,021) Other Amounts 43,866,231 32,916,039 (10,950,192) Total Liabilities 73,900,055 62,402,693 (11,497,362) Deferred Inflows of Resources Property Taxes 5,593,655 5,564,259 (29,396) Leases 1,679,974 1,213,327 (466,647) Pension 8,790,945 4,630,818 (4,160,127) OPEB 2,189,175 3,276,724 1,087,549 TotalDeferredlnflowsofResources 18,253,749 14,685,128 (3,568,621) Net Position Net Investment in Capital Assets 88,292,505 85,063,992 3,228,513 Restricted for: Debt Service 1,042,613 967,569 75,044 Other Purposes 4,097,573 3,988,865 108,708 Unrestricted 18,947,361 9,334,019 9,613,342 TotalNetPosition $112,380,052 $99,354,445 $13,025,607 The net pension liability (NPL) is one of the largest single liabilities reported by the City at December 31, 2022. GASB notes that pension and OPEB obligations, whether funded or unfunded, are part of the "employment exchange"—that is,the employee is trading his or her labor in exchange for wages,benefits,and the promise of a future pension and other postemployment benefits. GASB noted that the unfunded portion of this pension promise is a present obligation of the government,part of a bargained-for benefit to the employee, and should accordingly be reported by the government as a liability since they received the benefit of the exchange; however,the City is not responsible for certain key factors affecting the balance of these liabilities. In Ohio, the employee shares the obligation of funding pension benefits with the employer. Both employer and employee contribution rates are capped by State statute. A change in these caps requires action of both Houses of the General Assembly and approval of the Governor. Benefit provisions are also determined by State statute. The Ohio Revised Code permits,but does not require the retirement systems to provide healthcare to eligible benefit recipients. The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits. - 8 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Most long-term liabilities have set repayment schedules or, in the case of compensated absences (i.e. sick and vacation leave), are satisfied through paid time-off or termination payments. There is no repayment schedule for the net pension liability or the net OPEB liability. As explained previously, changes in benefits, contribution rates, and return on investments affect the balance of these liabilities,but are outside the control of the local government. In the event that contributions, investment returns, and other changes are insufficient to keep up with required payments, State statute does not assign/identify the responsible party for the unfunded portion. Due to the unique nature of how the net pension liability and the net OPEB liability are satisfied, these liabilities are separately identified within the long-term liability section of the statement of net position. Net position may serve as a useful indicator of a government's financial position over time. In the case of the City of Brecksville, assets and deferred outflows of resources exceeded liabilities and deferred inflows of resources at December 31, 2022. By far the largest portion of the City of Brecksville's net position is its investment in capital assets including land,buildings, streets,water lines, storm water lines,and machinery net of related debt. The City uses these capital assets to provide services to its citizens; consequently,these assets are not available for future spending. Although the City of Brecksville's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The City's net position increased during the current year. Net position increased mainly due to increased capital assets from additions,including the ongoing work on the Interstate 77 and Miller Road interchange and Chippewa sanitary sewer projects. Also affecting the increase in net position is the changes in the net pension/OPEB liabilities/assets and deferred inflows/outflows, which can be attributed to the changes in assumptions for benefits and contribution rates. The City carefully invests its cash and equivalents in a variety of investment types with the primary focus being safety of principal, but with an attention to investment opportunities to increase yield. The Investment Board, which consists of the Mayor, Finance Director, and Law Director, pay close attention to daily investment earnings rates and long-term financial trends. The City's investment earnings and other interest revenue decreased during 2022 as a result of the application of GASB 31 and the change in the fair value of investments from the prior year. Table 2 shows the changes in net position for the year ended December 31,2022 compared to 2021. Table 2 Changes in Net Position Governmental Activities Restated 2022 2021 Change Program Revenues Charges for Services and Operating Assessments $3,311,447 $5,937,146 ($2,625,699) Operating Grants and Contributions 3,190,863 1,647,594 1,543,269 Capital Grants and Contributions 7,735,651 3,737,248 3,998,403 Total Program Revenues $14,237,961 $11,321,988 $2,915,973 (conrinued) - 9 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Table 2 Changes in Net Position(continued) Governmental Activities Restated 2022 2021 Change General Revenues Properry Taxes $5,692,713 $4,990,128 $702,585 Income Taxes 20,601,455 21,443,836 (842,381) Grants and Entitlements 539,245 558,923 (19,678) Contriburions and Donations 250,000 0 250,000 Investment Earnings and Other Interest (561,260) (90,398) (470,862) Other 604,453 587,197 17,256 Total General Revenues 27,126,606 27,489,686 (363,080) Total Revenues 41,364,567 38,811,674 2,552,893 Program Expenses General Government: Legislative and Executive 8,212,504 8,941,766 729,262 Judicial System 89,182 62,931 (26,251) Public Safety: Police 5,317,879 5,196,435 (121,444) Fire 3,115,344 3,065,057 (50,287) Public Health and Social Services 1,085,248 839,300 (245,948) Street Construcrion,Maintenance,and Repair 4,087,210 3,603,878 (483,332) Housing and Community Development 901,426 496,099 (405,327) Basic Utiliry Services 2,229,433 1,443,134 (786,299) Recreational Activities 2,047,004 5,984,955 3,937,951 Interest 1,253,730 686,090 (567,640) Total Program Expenses 28,338,960 30,319,645 1,980,685 Change in Net Position 13,025,607 8,492,029 4,533,578 Net Position Beginning of Year-Restated 99,354,445 90,862,416 8,492,029 NetPosition End of Year $112,380,052 $99,354,445 $13,025,607 Governmental Activities Several revenue sources fund our governmental activities with City income tax being the largest contributor. The income tax rate of 2 percent was created by City Charter and became effective January 1990. This tax created by Charter amendment will remain until such time as the City's electorate changes the rate, which is not anticipated. The income tax revenue amount has decreased from the prior year. This decrease can be attributed to decreases in employer withholdings due to a large employer moving to a "work from home" schedule for many of their employees and net profits, which was offset by an increase in individual taxpayer collections. Additionally, there was a large amount of refunds of withholding income taxes relating to 2021 "work from home" employment. The City has an active economic development program, which continually works on recruiting new establishments to the City while retaining its current businesses. - 10 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited In 2022, City income tax revenue of $3,020,004 per year is earmarked for specific City improvements. $141,667 per month, or$1,700,004 per year, is allocated toward building improvements. $30,000 per month, or$360,000 per year,is part of the funding designated for road improvements. $80,000 per month,or$960,000 per year, is allocated toward general municipal improvements. These revenues are allocated by ordinance of City Council providing that a substantial portion of income tax collections is designated far roads, City facilities and capital needs. Of the total revenue, the following is the portion provided by each revenue source: Investment 2022 Revenues by Source Earnings and Other Unrestricted Interest-1.36% Other 1.48% Charges for Contributions and Services and Donations 0.60% � � _ Operating Grants and Assessment 8.01% Entitlements 1.30% Operating Grants and Contributions 7.71% Property Taxes 13.76% Capital Grants and Contributions r 18.70% Income Taxes 49.80% Charges for services and operating assessments saw a significant decrease in 2022. This decrease is primarily due to a large licenses and permits from DiGeronimo Development, LLC, according to a new development project for a residential subdivision from the prior year. Operating grants and contributions saw a significant increase in 2022. This increase is primarily due to the receipts in the local fiscal recovery fund,which were used towards a portion of the police department's salaries and related benefits. Capital grants and contributions saw a significant increase compared to 2021. In 2022, the Brecksville Community Improvement Corporation (CIC) approved and remitted a payment of $2,896,568 to the City, which was receipted into the general fund. The City recognized a slight increase in property tax collections in 2022. In the next few years the City anticipates a steady increase in valuation as corporate renovations, expansions, and new developments are recognized, and as several housing developments become populated with new homes. Investment earnings fell compared to 2021. Again, this is primarily due to the application of GASB 31 fair value of investments adjustment. Costs contained within the legislative and executive category include all administrative, legal, economic development, engineering and income tax collection costs. The legislative and executive category also contains all costs associated with maintenance of City land and buildings as well as major supplies such as gasoline and utility costs. - 11 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited Public safety, including the police and fire departments, accounted for a large portion of program expenses. Our police department continues to improve their equipment to better serve our community and at the same time provide extra safety for our officers. The fire department is funded through Charter levy millage. The majority of operating costs for maintaining the fire department 24 hours a day, 7 days a week are financed with this millage. In 2022, the fire department also received a transfer in from the general fund to maintain its operation level. Billing for ambulance services provides additional stable funding designated for the purchase of fire equipment. We continue to strive to provide better police and fire service at a lower cost per man-hour. Public health and social services expenses include charges for county health programs,cemetery maintenance, and the human service department. The community center expenses are included in the recreational activities expenses. There was a decrease in this expense from 2021 mainly due to expenses related to the field house project,which is currently in progress. The City's on-going commitment to infrastructure maintenance is reflected in the$2,229,433 spent on utilities and $4,087,210 spent on street construction and maintenance. Services provided by these activities include garbage removal, recycling, leaf pick-up, storm drainage, snow removal, street maintenance and vehicle upkeep. Total program expenses for the current year by function are as follows: 2022 Expenses by Function Recreational Activities 7.220�o Interest Expense Basic Utility 4.43% Legislative, Executive & Services 7.87% Judicia129.29% Housing and Communiry Development 3.18% Street Construction, Maintenance, and Repair 14.420�0 �' Police 18.77% � Public Health and Social Services 3.83°/a Fire 10.99% The City's Funds Information about the City's governmental funds begins on page 18. These funds are accounted for using the modified accrual basis of accounting. Governmental funds in total saw a decrease in fund balance during the year. The most significant fund is our general fund with an unassigned fund balance at year-end. The general fund experienced a loss in fund balance. As discussed prior, the decrease in licenses and permits revenue is primarily due to a large licenses and permits from DiGeronimo Development, LLC, according to a new development project for a residential subdivision from the prior year. Contributions and donations increased during the year mostly due to contributions from the CIC,as discussed previously. Expenditures in the general fund decreased from the prior year. The largest decrease can be seen in general government legislative and executive as a result of the large deposit being held payable in the prior year. The general fund made two large - 12 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited non-recurring transfers during 2022. First,a transfer of$4,146,568 to the general municipal improvement fund was made to support both the Interstate 77 and Miller Road interchange and Miller Road widening projects. Secondly, a transfer of $1,430,723 to the road repaving fund was made to support the road program. Additionally,during 2022 some expenditures were expensed out of the local fiscal recovery fund as a response to the COVID-19 pandemic. Another significant fund is the fire department fund. Its primary revenue source, property tax, had a slight increase in 2022. The fire department fund, for the l Oth year in a row, required a transfer in from the general fund. The general obligation bond retirement fund saw a decrease in fund balance during 2022. Bond anticipation notes were retired and rolled over to general obligation bonds, with more retired than rolled over, thus decreasing the overall fund balance of the fund. The City has four other funds presented as major funds. These four funds are the general municipal improvement fund, the buildings and improvements fund, the road improvements fund and the capital urban redevelopment tax increment equivalents fund. The general municipal improvement fund decreased from bond anticipation notes being considered as short-term notes payable in the current year, which was offset with transfers in from the general fund to support the Interstate 77 and Miller Road interchange and Miller Road widening projects. Even though the buildings and improvements fund balance saw an increase in fund balance, there was less of an increase than the prior year because less income tax receivable estimated than the prior year based on the City's allocation split among various funds. The road improvements fund balance increased from transfers in from the general to support the road program. The capital urban redevelopment tax increment equivalents fund balance increased slightly as bond proceeds collected during the year exceeded capital outlay for the Valor Acres Phase II residential development project. General Fund Budgeting Highlights The City's budget is prepared according to Ohio law and is based on accounting for certain transactions on a basis of cash receipts, disbursements and encumbrances. The most significant budgeted fund is the general fund. During the course of 2022, the City amended its general fund budget several times. Actual revenues were higher than original and final budgeted revenues because the City prefers to take a conservative approach for its revenue projections. While actual expenditures were slightly higher than original appropriations,actual expenditures still came in below final appropriations due to the City's conservative approach to budgeting. All recommendations for budget changes come to the Finance Committee of City Council for review before going to the whole Council for ordinance enactment on the change. The general fund supports many of our major activities including the police department, fire department, recreation department, and most legislative and executive activities. The general fund is monitored closely, looking for possible revenue shortfalls or overspending by individual departments. Capital Assets and Debt Administration Capital Assets Total capital assets,net of depreciation,increased over 2021 due to significant capital investments made to the City. Additions included the new police station,joint widening of State Route 82 with the City of Broadview heights,city hall roof and air handler,the aquatics facility,Phase II of the Valor Acres residential development, and the fieldhouse at Blossom Hill being built with the Brecksville-Broadview Heights City School District. The City is committed to a long-term goal of rebuilding its infrastructure and facilities. We have a five year capital plan in place providing for rebuilding major residential streets,water,sewer and storm sewer lines. The five year plan also includes adding additional facilities to complement our current structures and updating our - 13 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited current structures to improve their integrity and usefulness. Use of grants and loans, as well as short-term notes and long-term bonds, enable the City to improve its capital assets, and at the same time, maintain our fund levels. See Note 10 for additional information on the City's capital assets. Debt The general obligation bond retirement bonds, including premiums, are composed of a 2012 Human Services Facility Refunding Bond of$413,240, a 2017 Police Facility Project Bond for $7,365,510, a 2017 Service Center Garage Bond for $1,531,034, a 2019 Police Facility Project Bond for $1,921,121, a 2019 Aquatic Faciliry Project Bond for$6,271,025, a 2022 State Route 82 Project(A)for$1,586,632, a 2022 State Route 82 Project (B) for $1,296,840, a 2022 Field House Project for $8,724,542, a 2022 Miller Road Project for $987,824, and a 2015 Refunding Tree Farm Property Bond from direct placement for$805,000. The tax increment financing revenue bonds consist of 2022 Valor Acres Project bonds of$9,316,800,including discounts. Principal and interest for these bonds will be paid from the collection of payments in lieu of taxes by the County Fiscal Officer. The special assessment bonds consist of Route 21/Hilton/Whitewood Sewer and Storm, Katherine Boulevard Improvements, Riverview Road Sewer, and Refunding Route 21 Access Road from direct placement. Principal and interest far these bonds are paid from the collection of special assessments by the County Fiscal Officer. During 2022, the City issued various purpose notes in the anticipation of bonds in the amounts of$5,200,000 for constructing sanitary sewer along a portion of Chippewa Road, of which $3,600,000 is considered to be long-term liabilities. The Ohio Public Works Commission(OPWC)loans from direct borrowings are paid semi-annually. All loans will be paid in full in the year 2034. The City had lease agreements for police vehicles. Leases will be paid in full in the year 2024. The City's overall debt increased in 2022 as the result of increases in general obligation bonds, tax increment �nancing revenue bonds, and bond anticipation notes. The City had an overall 1ega1 debt margin of $50,103,865 and an unvoted debt margin of$10,918,837. See Note 17 for additional information on the City's debt. Current Financial Related Activities The City of Brecksville continues to remain financially strong. Economic development agreements entered into in previous years are proving fruitful. Due to our increased income tax we are able to support our Fire Department without asking for additional property tax. The additional cash balances allow us to take advantage of any other economic development opportunities that may arise. In order to help support operations and provide for capital investment, the City actively pursues grant opportunities. Annually,the City receives various outside funding for items such as training,law enforcement, recycling, and equipment. In addition, some funding for large capital projects comes in the form of grants and loans from various agencies. Having capital funds in reserve to be able to meet matching grant requirements has proven to be a winning philosophy for the City and has allowed for improvement of streets, storm drainage systems,bridges,retaining walls,water and sewer lines, and recreation facilities. Another method used by the City to reduce costs is to cooperate with neighboring communities in the purchase of commodity items such as salt and asphalt. Research and communication with neighboring communities creates opportunities to negotiate lower pricing on electric and gas services. Cooperative agreements have - 14 - City of Brecksville, Ohio Management's Discussion and Analysis For the Year Ended December 31, 2022 Unaudited been entered into for sharing equipment, joint training, and back up services when in need. The Service Department continues to perform many functions in house that are typically outsourced; which not only provides excellent service,but also saves money. The City has entered into an agreement with a neighboring city to provide building inspection services for them. Brecksville collects a fee for the service and the neighboring community saves money by not having to hire their own employee. In 2017, the City entered into an agreement with three other area cities to create the Cuyahoga Valley Council of Government (COG). This COG will be used to consolidate services; such as, dispatch, jail and other community services, which lend itself to consolidation. The City entered into an agreement with Chagrin Valley Dispatch Council during 2017 for dispatch services, which is located at the City's police station. Lastly, in 2021, the City entered into an agreement with the Chagrin Valley Dispatch Council for managed information technology services. For many years the City has reduced its health care costs by operating a self-funded insurance program and aggressively shopping our benefits. The City continues to maintain a health care cost management committee comprised of representatives from all departments to address the issue of rising health care and develop strategies to minimize increases. The City monitors its fund balances,particularly the general fund,to ensure that adequate balances are in place to safeguard future years. In particular, the general fund balance is compared to forty-five percent of the previous year's expenses in accordance with rating agency standards. Annual budgeting is prepared using very conservative estimates. Using this methodology has allowed the City to maintain safe fund balances and have funds available far unanticipated expenses or revenue downturns. This fiscally moderate management style has also allowed the City to continue to provide excellent services without any increase in property tax rates. The Mayor, City Council, and the Finance Director work extremely hard at keeping our debt low. We plan our finances so that we can pay cash for many of the facility improvements and acquisitions, and continue to pay cash for all equipment and other major purchases necessary to maintain our level of services. From 2001 to 2010, the City of Brecksville has enjoyed a Moody's Investors Service bond rating of Aal. In 2010, Moody's recalibrated their rating criteria to level the ratings between government and private ratings. The result of this recalibration is that Brecksville's bond rating was increased to Aaa. In 2019, Moody's downgraded the City's rating to Aal, the level the City was at prior to the recalibration. This rating places Brecksville at an elite level of government ratings. The City has received the Government Finance Officers Award (GFOA) Certificate of Achievement for Excellence since 1990, the year of our first Annual Comprehensive Financial Report (ACFR). The City has prepared a Popular Annual Financial Report(PAFR) since 2006. The financial information for this report is taken from the ACFR and condensed into a ten page, reader friendly financial publication. The PAFR has been submitted to the GFOA annually and has received an Award far Outstanding Achievement each year. Our commitment to our residents has always been one of full disclosure of the financial position of the City and work to make that information available to them. The City's website www.brecksville.oh.us contains the ACFR and PAFR, as well as other financial information related to revenue, expenditures, and property and income tax. Contacting the City's Finance Department This �nancial report is designed to provide our citizens, taxpayers, creditors and investors with a general overview of the City's finances and demonstrate the City's accountability for all money it receives, spends, and invests. Please direct any questions about this report or financial infarmation inquiries to Laura Starosta, Director of Finance, City of Brecksville, 9069 Brecksville Road, Brecksville, Ohio 44141, email lstarosta@brecksville.oh.us or telephone 440-526-4351. - 15 - City of Brecksville,Ohio Statement of Net Position December�31,2022 Governmental Activities Assets Fquiry in Pooled Cash and Cash Fquivalents $35,257,528 Cash and Cash Equivalents: In Segregated Accounts 8,362 With Fiscal Agent 49A,523 With Escrow Agent 3,256,353 Accmed Interest Receivable 22,854 Materials and Supplies Inventory 377,868 Accounts Receivable 130,123 Intergovemmental Receivable 9,876,288 Municipal Income Taxes Receivable 4,945,459 Property Taxes ReceivabLe 5,79Q541 Special Assessments Receivable 673,528 Prepaid Items 290,110 Assets Held for Resale 137,100 Leases Receivable 1,682,892 Net Pension Asset(See Note 12) 99,147 Net OPEB Asset(See Note 13) 1,445,833 Nondepreciable Capital Assets 35,226,33A Depreciable Capital Assets,Net 98,664,554 TotadAssets 198,383,401 Deferred Outl'lows of Resources Asset Retirement Obligations 7,823 Deferred Charges on Refunding 32,888 Pension 5,077,187 OPEB 1,032,557 TotadDeferred Outflows ofResources 6,15Q455 Liabilifies Accounts Payable 351,365 Contracts PayabLe 1,937,529 Retainage Payable 397,I A4 Awmed Wages 769,069 Payroll Withholdings Payable 23,853 Intergovemmental Payable 196,631 Deposits Held Payable 1,576,054 Notes Payable 6,194,454 Acemed Interest Payable 236,329 Claims Payable 313,976 Vacation Benefits Payable 440,959 Long-Term Liabilities: Due Within One Year 1,890,540 Due In More Tlian One Year: Net Pension LiabiliTy(See Note 12) 13,982,527 Net OPEB Liability(See Note 13) 1,723,354 Other Amounts 43,866,231 Tota[Liabilikes 73,90Q055 Deferred Inflows of Resources Properry Taxes 5,593,655 Leases 1,679,974 Pension 8,79Q945 OPEB 2,I 89,175 Tota[DeJerved IeJlows ojResources 18,253,749 Net Position Netlnveshnentin Capital Assets 88,292,505 Restricted for. Debt Service 1,042,613 Court Computerization 146,860 Fire DepaRment 1,435,356 Police Department SSQ580 Road Maintenance 382,759 Sneet Constructioq Maintenance,and Repair 1,370,202 Pension Plans 96,243 Other Purposes I 15,573 Unreshicted 18,947,361 Tota[Net Position $112,380,052 See accompanying notes to the busic financial statements - 16 - City of Brecksville,Ohio Statement of Activities For the Year Ended December 31,2022 Net(Expense) Revenue and Changes in Program Revenues Net Position Charges for Services and Operating Capital Operating Grants and Grants and Governmental Expenses Assessments Contributions Contributions Activities Governmental Activities General Government: Legislative and Executive $8,212,504 $806,413 $35,883 $2,951,396 ($4,418,812) Judicial System 89,182 176,350 0 0 87,168 Public Safety: Police 5,317,879 4,462 1,591,356 0 (3,722,061) Fire 3,115,344 481,181 309,099 0 (2,325,064) Public Health and Social Services 1,085,248 88,779 37,651 0 (958,818) Street Construction,Maintenance,and Repair 4,087,210 6,293 1,062,102 16,785 (3,002,030) Housing and Community Development 901,426 287,492 25,000 335,609 (253,325) Basic Utility Services 2,229,433 83,920 23,717 4,382,224 2,260,428 Recreational Activities 2,047,004 1,376,557 106,055 49,637 (514,755) Interest 1,253,730 0 0 0 (1,253,730) TotalGovernmentalActivities $28,338,960 $3,311,447 $3,190,863 $7,735,651 (14,100,999) General Revenues Property Taxes Levied for: General Purposes 2,433,794 Fire Department 2,357,515 Road Maintenance 693,388 Police Department 208,016 Municipal Income Taxes Levied for: General Purposes 17,764,785 Capital Outlay 2,836,670 Grants and Entitlements not Restricted to Specific Programs 539,245 Unrestricted Contributions and Donations 250,000 Inveshnent Earnings and Other Interest (561,260) Miscellaneous 604,453 Total General Revenues 27,126,606 Change in Net Position 13,025,607 Net Position Beginning of Year -Restated (See Note 3) 99,354,445 NetPosition End of Year $ll2,380,052 See accompanying notes to the basic financial statements - 17 - City of Brecksville,Ohio Balance Sheet Governmental Funds December 31,2022 General Obligation General Fire Bond Municipal General Department Retirement Improvement Assets Equiry in Pooled Cash and Cash Equivalents $11,056,359 $1,562,184 $688,384 $8,868,914 Cash and Cash Equivalents: In Segregated Accounts 6,362 0 0 0 With Fiscal Agent 0 0 0 0 Accrued Interest Receivable 6,556 801 0 4,870 Materials and Supplies Inventory 256,963 51,250 0 0 Accounts Receivable 83,153 0 1,376 0 Interfund Receivable 2,636,898 0 0 0 Intergovernmental Receivable 385,012 145,801 0 8,664,951 Municipal Income Taxes Receivable 4,625,459 0 0 160,000 Properry Taxes Receivable 2,475,630 2,398,025 0 0 Special Assessments Receivable 0 0 0 0 Prepaid Items 287,015 317 0 0 Assets Held for Resale 137,100 0 0 0 Leases Receivable 1,682,892 0 0 0 Restricted Assets: Equity in Pooled Cash and Cash Equivalents 1,578,058 0 0 0 Cash and Cash Equivalents with Escrow Agent 0 0 0 0 TotalAssets $25,217,457 $4,158,378 $689,760 $17,698,735 Liabilities Accounts Payable $245,154 $12,592 SO $31,565 Contracts Payable 20,183 0 0 214,448 Retainage Payable 0 0 0 92,474 Accrued Wages 599,064 120,274 0 0 Payroll Withholdings Payable 16,704 7,149 0 0 Interfund Payable 0 0 0 2,579,598 Intergovernmental Payable 169,674 17,929 0 0 Deposits Held Payable from Restricted Assets 1,573,708 0 0 0 Notes Payable 0 0 44,454 6,150,000 Accrued Interest Payable 0 0 0 67,009 Tota[Liabilities 2,624,487 157,944 44,454 9,135,094 Deferred Inflows of Resources Property Taxes 2,391,441 2,316,495 0 0 Leases 1,679,974 0 0 0 UnavailableRevenue 2,136,138 227,331 0 8,651,489 Tota[DeferredlnflowsofResources 6,207,553 2,543,826 0 8,651,489 Fund Balances Nonspendable 724,428 51,567 0 0 Restricted 0 1,405,041 645,306 0 Committed 882,242 0 0 0 Assigned 384,827 0 0 0 Unassigned(Deficit) 14,393,920 0 0 (87,848) Tota[Fund Ba[ances 16,385,417 1,456,608 645,306 (87,848) Tota[Liabilities,Deferred Inflows of Resources and Fund Balances $25,217,457 $4,158,378 $689,760 $17,698,735 See accompanying notes to the basic financial statements - Ig - Capital Urban Redevelopment Other Total Buildings and Road Tax Increment Governmental Governmental Improvements Improvements Equivalents Funds Funds $1,852,958 $1,886,715 $0 $5,675,017 $31,590,531 0 0 0 2,000 8,362 0 0 0 498,523 498,523 1,018 1,036 4,867 2,560 21,708 0 0 0 69,655 377,868 12,197 0 0 32,005 128,731 0 0 0 0 2,636,898 0 0 0 680,524 9,876,288 100,000 60,000 0 0 4,945,459 0 0 0 916,886 5,790,541 0 0 0 673,528 673,528 0 0 0 2,778 290,110 0 0 0 0 137,100 0 0 0 0 1,682,892 0 0 0 2,346 1,580,404 0 0 1,561,351 1,695,002 3,256,353 $1,966,173 $1,947,751 $1,566,218 $10,250,824 $63,495,296 $14,887 $0 $0 $46,791 $350,989 7,000 0 1,561,351 134,547 1,937,529 0 0 0 304,710 397,184 0 0 0 49,731 769,069 0 0 0 0 23,853 0 17,300 0 40,000 2,636,898 0 0 0 9,028 196,631 0 0 0 2,346 1,576,054 0 0 0 0 6,194,454 0 73 0 0 67,082 21,887 17,373 1,561,351 587,153 14,149,743 0 0 0 885,719 5,593,655 0 0 0 0 1,679,974 0 0 0 1,232,978 12,247,936 0 0 0 2,118,697 19,521,565 0 0 0 72,433 848,428 0 0 4,867 4,033,684 6,088,898 1,944,286 1,930,378 0 2,220,848 6,977,754 0 0 0 1,244,030 1,628,857 0 0 0 (26,021) 14,280,051 1,944,286 1,930,378 4,867 7,544,974 29,823,988 $1,966,173 $1,947,751 $1,566,218 $10,250,824 $63,495,296 - 19 - City of Brecksville,Ohio Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities December 31, 2022 Total Governmental Fund Balances $29,823,988 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 133,890,892 Other long-term assets are not available to pay for current period expenditures and therefore are reported as unavailable in the funds: Delinquent Property Taxes $196,886 Municipal Income Taxes 1,740,222 Charges far Services 98,957 intergovernmental 9,537,192 Special Assessments 673,528 Miscellaneous 1,151 Total 12,247,936 An internal service fund is used by management to charge the costs of insurance to individual funds. The assets and liabilities of the internal service fund are included in governmental activities in the statement of net position. 1,774,779 In the statement of activities,interest is accrued on outstanding bonds,whereas in governmental funds,an interest expenditure is reported when due. (169,247) Vacation benefits payable are not expected to be paid with expendable available financial resources and therefore are not reported in the funds. (440,959) Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Deferred Charges on Refunding 32,888 General Obligation Bonds (30,902,768) Tax Increment Financing Revenue Bonds (9,316,800) Special Assessment Bonds (605,000) Bond Anticipation Notes (3,600,000) OPWC Loans (203,023) Leases (5,366) Compensated Absences (1,059,809) Deferred Outflows-Asset Retirement 7,823 Asset Retirement Obligations (64,005) Total (45,716,060) The net pension asset,net pension liability,net OPEB asset,and net OPEB liability are not due and payable in the current period and therefare the assets,liabilities, and related deferred inflows/outflows are not reported in governmental funds: Net Pension Asset 99,147 Net OPEB Asset 1,445,833 Deferred Outflows-Pension 5,077,187 Deferred Outflows-OPEB 1,032,557 Net Pension Liabiliry (]3,982,527) Net OPEB Liability (1,723,354) Deferred Inflows-Pension (8,790,945) Deferred Inflows-OPEB (2,189,175) Total (19,031,277) Net Posifion of Governmental Activities $ll 2,380,052 - 2� - City of Brecksville,Ohio Statement of Revenues,Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended December 3L,2022 General Obligation General Fire Bond Municipal General Deparhnent Retirement Improvement Revenues Properry Taxes $2,418,360 $2,342,570 $0 $0 Municipal Income Taxes 17,664,275 0 0 960,000 Charges for Services 143,266 0 0 0 Licenses and Permits 1,000,139 0 0 0 Fines,Forfeitures,and Settlements 117,256 0 0 0 Intergovernmental 707,594 290,302 0 809,683 Special Assessments 0 0 0 21,704 Investment Earnings and Other Interest (110,472) (30,779) 0 (214,242) Contributions and Donations 3,186,612 0 0 10,943 Leases 66,844 0 0 0 Rentals 58,292 0 0 0 Miscellaneous 379,068 1,273 1,376 2,595 Total Revenues 25,631,234 2,603,366 1,376 1,590,683 Expenditures Current: General Government: Legislarive and Executive 8,601,308 0 0 0 Judicial System 130,040 0 0 0 Public Safety: Police 3,682,507 0 0 0 Fire 33,728 2,829,035 0 0 Public Health and Social Services 1,076,468 0 0 0 Street Construction,Maintenance,and Repair 2,503,614 0 0 0 Housing and Community Development 1,168,558 0 0 0 Basic UtiGty Services 1,710,264 0 0 0 Recreational Activities 0 0 0 0 CapitalOutlay 0 0 0 9,809,654 Debt Service: Principal Retirement 4,412 0 14,130,000 0 Interest 1,281 0 1,032,625 69,395 Issuance Costs 0 0 263,778 0 TotalExpenditures 18,912,180 2,829,035 15,426,403 9,879,049 Excess of'Revenues Over(Under)Expenditures 6,719,054 (225,669) (15,425,027) (8,288,366) Other Financing Sources(Uses) Sale of Capital Assets 3,181 481 0 0 General Obligation Bonds Issued 0 0 11,855,000 0 Premium on General Obligation Bonds 0 0 1,084,006 0 Tax Increment Financing Revenue Bonds Issued 0 0 0 0 Discount on Tax Increment Financing Revenue Bonds 0 0 0 0 Bond Anticipation Notes Issued 0 0 0 3,600,000 InceptionofLease 6,842 0 0 0 Transfers In 0 421,000 2,327,466 4,146,568 Transfers Out (7,468,291) 0 0 (700,989) Total Other Financing Sources(Uses) (7,458,268) 421,481 15,266,472 7,045,579 Net Change in Fund Ba[ances (739,214) 195,812 (158,555) (1,242,787) Fund Balances(Deficit)Beginning of Year- Restated(See Note 3) 17,124,631 1,260,796 A03,861 1,154,939 Fund Balances End of Year $16,385,417 $1,456,608 $645,306 ($87,848) See accompanying notes to the basic financial statements (continued) - 21 - City of Brecksville,Ohio Statement of Revenues,Expenditures and Changes in Fund Balances Governmental F�rnds(continued) For the Year Ended December 3L,2022 Capital Urban Redevelopment Other Total Buildings and Roaci Tax Increment Governmental Governmental Improvements Improvements Equivalents Funds Funds Revenues Property Taxes $0 $0 $0 $895,691 $5,656,621 Municipal Income Taxes 1,516,670 360,000 0 0 20,500,945 Charges for Services 0 0 0 1,617,190 1,760,456 Licenses and Permits 0 0 0 174,326 1,174,465 Fines,Forfeitures,and Settlements 0 0 0 8,035 125,291 Intergovernmental 43,885 16,785 0 2,564,655 4,432,904 Special Assessments 0 6,293 0 231,251 259,248 Investment Earnings and OtherInterest (45,910) (53,930) 36,461 (92,574) (511,446) Conhibutions and Donations 0 0 335,609 40,555 3,573,719 Leases 0 0 0 0 66,844 Rentals 0 0 0 59,181 117,473 Miscellaneous 0 0 0 9,122 393,434 TotalRevenues 1,514,645 329,148 372,070 5,507,432 37,549,954 Expenditures Current: General Government: Legislative and Execurive 0 0 0 9,951 8,611,259 Judicial System 0 0 0 5,133 135,173 Public Safety: Police 0 0 0 1,6ll,458 5,293,965 Fire 0 0 0 0 2,862,763 Public Health and Social Services 0 0 0 0 1,076,468 Street Construction,Maintenance,and Repair 0 0 0 1,A56,361 4,359,975 Housing and Community Development 0 0 0 27,913 1,196,471 Basic Utiliry Services 0 0 0 5,766 1,716,030 Recreational Activities 0 0 0 2,476,026 2,476,026 CapitalOutlay 374,886 217,877 7,401,847 2,020,437 19,824,701 Debt Service: Principal Retirement 0 0 0 291,155 14,425,567 Interest 0 1,113 0 312,747 1,417,161 Issuance Costs 0 0 311,345 0 575,123 Total Expenditures 374,886 218,990 7,713,192 8,616,947 63,970,682 Excess ofRevenues Over(Under)Expenditures 1,139,759 110,158 (7,341,122) (3,109,515) (26,420,728) Other Financing Sources(Uses) Sale of Capital Assets 0 0 0 2,027 5,689 General Obligation Bonds Issued 0 0 0 0 11,855,000 Premium on General Obligation Bonds 0 0 0 0 1,084,006 Tax Increment Financing Revenue Bonds Issued 0 0 7,734,189 1,970,8ll 9,705,000 Discount on Tax Increment Financing Revenue Bonds 0 0 (388,200) 0 (388,200) Bond Anticipation Notes Issued 0 0 0 0 3,600,000 Inception of Lease 0 0 0 0 6,842 Transfers In 0 1,430,723 0 1,501,157 9,826,914 Transfers Out (943,837) 0 0 (713,797) (9,826,914) TotalOthevFinancingSources(Uses) (943,837) 1,430,723 7,345,989 2,760,198 25,868,337 Net Change in Fund Balances 195,922 1,540,881 4,867 (349,317) (552,391) Fund Balances(Deficit)Beginning of Year- Restated(See Note 3) 1,748,364 389,497 0 7,894,291 30,376,379 Fund Balances End of Year $1,944,286 $1,930,378 $4,867 $7,544,974 $29,823,988 See accompanying notes to the basic financial statements - 22 - City of Brecksville,Ohio Reconciliation of the Statement ofRevenues,Expendilures and Changes in Fund Balances of Governmenta[Funds ta the Statement ofActivities For the Year Ended Deeember 31,2022 Net Change in Fund Balances-Total Governmental Funds ($552,391) Amounts reported for governmental acfivikes in the statenient of ackvi[ies are different because: Govemme��ta]fu��ds report capital outlays as expenditures;however,in the statement of activities,the cost of those assets is alloeated over their estimated useful lives as deprecia[ion/amor[ization expense. This is the amoun[by which capital outlay exceeded depreciation/amortiza[ion in the current period. Capital Asset Additions $21,352,127 Current Year Depreciation/Amortization (3,618,543) Total 17,733,584 Governmental funds only report the disposal of capital assets to the extent proceeds are received from the saLe. In the statement of activities,a gain or loss is reported foreach disposaL (2,937) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Delinquent Property Taxes 36,092 Municipal Income Taxes l OQ5 LO Charges for Seivices 98,957 Intergovernmental 3,709,136 Special Assessments (291,287) Miscellaneous 1,151 Total 3,654,559 Other financing sources in the governmenta]funds increase long-term liabilities in[he statement of net posidon: General Obligation Bonds issued (11,855,000) Premium on General Obligation Bonds (1,084,006) TaxIncrementFinancing Revenue BondsIssued (9,705,000) Discount on Tax Increment Financing Revenue Bonds 388,200 Bond Anticipation Notes Issued (3,600,000) Inception of Lease (6,842) Total (25,862,648) Repayment oflong-term obligations is an expenditure in the govemmental funds,but the repayment reduces long-[erm liabilities in[he sta[ement of net position. 14,425,567 Some expenses reported in the statement of activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental funds. Accrued Interest on Debt (15,254) Amor[ization of Premium on Deb[ 208,797 AmoRization of Deferred Charges on Refunding (3Q L 12) Total 163,431 Some expenses require Ihe use of current financial resources aud[herefore are not reported as expe�ditures i��govemmental funds. Compensated Absences 77,ll 1 Vacation Payable (14,340) Total 62,771 Co�tractually required co�tributions are reported as expenditures in gover�mental funds; however,the statement of net posi[ion reports[hese amounts as deferred outflows. Pension 1,929,410 OPEB 27,287 Total 1,956,697 Except for amounts repor[ed as deferred inflows/outflows,changes in the ne[pension/OPEB asset/liabilities are reported as pension/OPEB expense in the statement of activities. Pe�sio� 206,984 OPEB 1,190,108 Total 1,397,092 The interna]service fund used by manageme�t to charge the individual funds is reported in the s[a[ement of activities. Governmental fund expenditures and rela[ed in[ernal service fund revenues are eliminated. 52,014 Asset retirement obligation expenses reported in the statement of activities do not require the use of current financia]resources and therefore are not reported as expenditures in governmeutal fuuds. (2,132) Net Position ofGovernmental Activides $13,025,607 - 23 - City of Brecksville,Ohio Statement of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual GeneralFund For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Property Taxes $2,387,046 $2,387,046 $2,418,360 $31,314 Municipal Income Taxes 15,964,996 15,964,996 17,858,464 1,893,468 Charges for Services 104,100 104,100 143,386 39,286 Licenses and Permits 1,147,500 1,150,768 1,032,765 (118,003) Fines,Forfeitures,and Settlements 141,050 141,050 173,247 32,197 Intergovernmental 554,847 682,199 678,868 (3,331) Investment Earnings and Other Interest 150,000 150,000 144,580 (5,420) Contributions and Donations 28,100 2,924,668 2,936,612 11,944 Rentals 163,855 163,855 177,690 13,835 Miscellaneous 274,397 1,309,588 630,888 (678,700) TotalRevenues 20,915,891 24,978,270 26,194,860 1,216,590 Expenditures Current: General Government: Legislative and Executive 9,745,375 14,288,315 12,189,868 2,098,447 Judicial System 179,489 159,489 135,102 24,387 Public Safety: Police 5,594,728 4,171,469 3,668,761 502,708 Fire 23,472 52,991 33,728 19,263 Public Health and Social Services 1,207,141 1,219,841 1,094,431 125,410 Street Construction,Maintenance,and Repair 2,650,372 2,665,633 2,503,946 161,687 Housing and Community Development 1,203,512 1,441,142 1,168,667 272,475 Basic Utility Services 2,165,131 2,242,346 2,042,902 199,444 Debt Service: Principal Retirement 4,412 4,412 4,412 0 lnterest 1,281 1,281 1,281 0 Total Expenditures 22,774,913 26,246,919 22,843,098 3,403,821 Excess ofRevenues Over(Under)Expenditures (1,859,022) (1,268,649) 3,351,762 4,620,411 Other Financing Sources([Jses) Sale of Capital Assets 5,000 5,000 3,311 (1,689) Advances In 300,000 300,000 300,000 0 Advances Out (340,000) (2,579,898) (2,579,898) 0 Transfers Out (1,891,000) (7,468,291) (7,468,291) 0 Total Other Financing Sources(U.ses) (1,926,000) (9,743,189) (9,744,878) (1,689) Net Change in Fund Balance (3,785,022) (11,011,838) (6,393,ll6) 4,618,722 Fund Balance Beginning of'Year 17,866,076 17,866,076 17,866,076 0 Prior Year Encumbrances Appropriated 476,733 476,733 476,733 0 Fund Balance End of Year $14,557,787 $7,330,971 $11,949,693 $4,618,722 See accompanying notes to the basic financial statements - 24 - City of Brecksville,Ohio Statement of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Fire Department Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Property Taxes $2,312,238 $2,312,238 $2,342,570 $30,332 Intergovernmental 277,469 277,469 291,502 14,033 Investment Earnings and Other Interest 15,000 15,000 22,864 7,864 Miscellaneous 1,302 1,302 1,845 543 Total Revenues 2,606,009 2,606,009 2,658,781 52,772 Expenditures Current: Public Safety: Fire 3,001,166 3,001,166 2,850,460 150,706 Excess ofRevenues Under Expenditures (395,157) (395,157) (191,679) 203,478 Other Financing Sources Sale of Capital Assets 500 500 481 (19) TransfersIn 421,000 421,000 421,000 0 Total Other Financing Sources 421,500 421,500 421,481 (19) Net Change in Pund Balance 26,343 26,343 229,802 203,459 Fund Balance Beginning of Year 1,320,993 1,320,993 1,320,993 0 Prior Year Encumbrances Appropriated 26,474 26,474 26,474 0 Fund Balance E'nd of Year $1,373,810 $1,373,810 $1,577,269 $203,459 See accompanying notes to the basic financial statements - 25 - City of Brecksville, Ohio Statement of Fund Net Position Proprietary Fund December 31, 2022 Internal Service Fund- Insurance Assets Current Assets: Equity in Pooled Cash and Cash Equivalents $2,086,593 Accounts Receivable 1,392 Accrued Interest Receivable 1,146 Total Assets 2,089,131 Liabilities Current Liabilities: Accounts Payable 376 Claims Payable 313,976 Total Liabilities 314,352 Net Position Unrestricted $1,774,779 See accompanying notes to the basic financial statements - 26 - City of Brecksville, Ohio Statement of Revenues, Expenses and Changes in Fund Net Position Proprietary Fund For the Year Ended December 31, 2022 Internal Service Fund- Insurance Operating Revenues Charges for Services $2,282,574 Miscellaneous 209,868 Total Operating Revenues 2,492,442 Operating Expenses Purchased Services 4,525 Claims 2,386,089 Total Operating Expenses 2,390,614 Operating Income 101,828 Non-Operating Revenues Investment Earnings and Other Interest (49,814) Change in Net Position 52,014 Net Position Beginning of Year 1,722,765 Net Position End of Year $1,774,779 See accompanying notes to the basic financial statements - 27 - City of Brecksville, Ohio Statement of Cash Flows Proprietary Fund For the Year Ended December 31, 2022 Internal Service Fund- Insurance Increases(Decreases)in Cash and Cash Equivalents Cash Flows from Operating Activities Cash Received from Customers $2,282,574 Other Operating Revenues 220,165 Cash Payments to Suppliers for Purchased Services (4,149) Cash Payments for Claims (2,291,249) Net Cash Provided by Operating Activities 207,341 Cash Flows from Investing Activities Investment Earnings and Other Interest (50,960) Net Increase in Cash and Cash Equivalents 156,381 Cash and Cash Equivalents Beginning of Year 1,930,212 Cash and Cash Equivalents End of Year $2,086,593 Reconciliation of Operating Income to Net Cash Provided by Operating Activities Operating Income $101,828 Adjustments: Decrease in Assets: Accounts Receivables 3,231 Intergovernmental Receivable 7,066 Increase in Liabilities: Accounts Payable 376 Claims Payable 94,840 Total Adjustments 105,513 Net Cash Provided by Operating Activities $207,341 See accompanying notes to the basic financial statements - 28 - City of Brecksville, Ohio Statement of Fiduciary Net Position Fiduciary Funds December 31, 2022 Private Purpose Trust Custodial Mayor's Cemetery Court Assets Equity in Pooled Cash and Cash Equivalents $3,336 $3,663 Accrued Interest Receivable 2 0 Total Assets 3,338 3,663 Liabilities Intergovernmental Payable 0 3,663 Net Position Held in Trust for Cemetery 338 0 Endowments 3,000 0 Total Net Position $3,338 $0 See accompanying notes to the basic financial statements - 29 - City of Brecksville, Ohio Statement of Changes in Fiduciary Net Position Fiduciary Funds For the Year Ended December 31, 2022 Private Purpose Trust Custodial Mayor's Cemetery Court Additions Fines and Forfeitures for Other Governments $0 $49,018 Investment Earnings and Other Interest (78) 0 Total Additions (78) 49,018 Deductions Distributions of Court Funds to Other Governments 0 49,018 Net Increase (Decrease) in Fiduciary Net Position (78) 0 Net Position Beginning of Year 3,416 0 Net Position End of Year $3,338 $0 See accompanying notes to the basic financial statements - 30 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 1 —Description of the City and Reporting Entity The City of Brecksville (the "City") was incorporated under the laws of the State of Ohio in 1921, and adopted its first charter in 1956. The Charter provides for a Mayor-Council form of government. The Mayor is elected for a four-year term and the seven Council members are elected at large for staggered terms. Four Council members are elected at each regular municipal election in November of odd numbered years. Of the four elected, the three receiving the highest number of votes serve a term of four years and the fourth serves a term of two years. Reporting Entity A reporting entity is comprised of the primary government, component units and other organizations that are included to ensure that the financial statements are not misleading. The primary government consists of all funds, departments,boards and agencies that are not legally separate from the City. For the City of Brecksville, this includes the agencies and departments that provide the following services: police and fire protection, emergency medical, parks and recreation, planning, zoning, human services, street maintenance and repair and general administrative services. The operation of each of these activities is directly controlled by Council through the budgetary process. Component units are legally separate organizations for which the City is �nancially accountable. The City is financially accountable for an organization if the City appoints a voting majority of the organization's governing board; and 1) the City is able to significantly influence the programs or services performed or provided by the organization; or 2) the City is legally entitled to or can otherwise access the organization's resources; the City is legally obligated or has otherwise assumed the responsibility to finance the deficits of, or provide financial support to, the organization; or the City is obligated for the debt of the organization. Component units may also include organizations that are fiscally dependent on the City in that the City approves the budget, the issuance of debt or levying the taxes. There are no component units included as part of this report. The City participates in one insurance purchasing pool, the Ohio Association of Public Treasurers; five jointly governed organizations, the Southwest Council of Governments, the Northeast Ohio Public Energy Council, the Cuyahoga Valley Council of Governments, the Chagrin Valley Dispatch Council, and the Regional Income Tax Agency; and one related organization, the Brecksville Community Improvement Corporation. A jointly governed organization is managed by representatives from each of the governments that create the organization, but there is neither ongoing financial interest nor responsibility on the part of the participating governments. These organizations are discussed in Notes 21, 22, and 23 to the basic financial statements. Note 2— Summary of Significant Accounting Policies The financial statements of the City have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body far establishing governmental accounting and financial principles. The more significant of the City's accounting policies are described as follows. Basis of Presentation The City's basic financial statements consist of government-wide statements, including a statement of net position and a statement of activities, and fund financial statements which provide a more detailed level of financial information. - 31 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Government-wide Financial Statements The statement of net position and the statement of activities display information about the City as a whole. These statements include the financial activities of the primary government, except for fiduciary funds. The activity of the internal service fund is eliminated to avoid "doubling up" revenues and expenses. These statements usually distinguish between those activities of the City that are governmental and those that are considered business-type. The City, however, has no business-type activities. The statement of net position presents the financial condition of the governmental activities of the City at year-end. The statement of activities presents a comparison between direct expenses and program revenues for each program or function of the City's governmental activities. Direct expenses are those that are specifically associated with a service,program or department and therefore clearly identifiable to a particular function. Program revenues include charges paid by the recipient of the goods or services offered by the program, grants and contributions that are restricted to meeting the operational or capital requirements of a particular program and investment earnings earned on grants that is required to be used to support a particular program. Revenues which are not classified as program revenues are presented as general revenues of the City, with certain limited exceptions. The comparison of direct expenses with program revenues identi�es the extent to which each governmental function is self-�nancing or draws from the general revenues of the City. Fund Financial Statements During the year, the City segregates transactions related to certain City functions or activities in separate funds in order to aid financial management and to demonstrate legal compliance. Fund financial statements are designed to present financial information of the City at this more detailed level. The focus of governmental fund financial statements is on major funds. Each major fund is presented in a separate column. Nonmajor funds are aggregated and presented in a single column. The internal seroice fund is presented in a single column on the face of the proprietary fund statements. Fiduciary funds are reported by type. Fund Accounting The City uses funds to maintain its financial records during the year. A fund is defined as a fiscal and accounting entity with a self-balancing set of accounts. There are three categories of funds: governmental,proprietary and fiduciary. Governmental Funds Governmental funds are those through which most governmental functions are financed. Governmental fund reporting focuses on the sources, uses and balances of current financial resources. Expendable assets are assigned to the various governmental funds according to the purposes for which they may or must be used. Current liabilities are assigned to the fund from which they will be paid. The difference between governmental fund assets and deferred outflows of resources, and liabilities and deferred inflows of resources is reported as fund balance. The following are the City's major governmental funds: General Fund The general fund accounts for and reports all financial resources except those required to be accounted for and reported in another fund. The general fund balance is available to the City for any purpose provided it is expended or transferred according to the charter of the City of Brecksville and/or the general laws of Ohio. Fire Department Fund This fund is used to account for and report monies derived from a 3.4 mill charter levy restricted to providing equipment and personnel for the fire department. General Obligation Bond Retirement Fund This fund is used to account for and report transfers in and tax levies that are restricted for the repayment of general obligation debt. - 32 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 General Municipal Improvement Fund This fund accounts for and reports the City income tax committed for the acquisition, construction, and improvement of various facilities within the City. Buildings and Improvements Fund This fund accounts for and reports City income tax committed to the acquisition, construction, and improvement of major capital facilities. Road Improvements Fund This fund accounts for and reports income tax monies committed to the improvements of various City roads. Capital Urban Redevelopment Tax IncNement Equivalents Fund This fund accounts for and reports bond proceeds restricted for the development of what is known as Valor Acres. The fund did not have any budgetary activity in 2022; therefare,budgetary information is not provided. The other governmental funds of the City account for grants and other resources whose use is restricted, committed or assigned to a particular purpose. Proprietary Fund Proprietary fund reporting focuses on the determination of operating income, changes in net position, financial position and cash flows. The City's only proprietary fund is classified as an internal service fund. Internal SeNvice Fund Internal service funds account for the financing of services provided by one department or agency to other departments or agencies of the City on a cost-reimbursement basis. The City's only internal service fund is a health fund that accounts for prescription drug and hospital/medical claims of the City employees. Fiduciary Funtls Fiduciary fund reporting focuses on net position and changes in net position. The fiduciary fund category is split into four classifications: pension (and other employee benefit) trust funds, investment trust funds, private purpose trust funds and custodial funds. Trust funds are distinguished from custodial funds by the existence of a trust agreement or equivalent arrangement that has certain characteristics. The City's only trust fund is a private purpose trust which accounts for the perpetual care and maintenance of an individual family's burial plots in the City's cemetery through an endowment. Custodial funds are used to report fiduciary activities that are not required to be reported in a trust fund. The Ciry's only custodial fund accounts for various fines and forfeitures collected for the benefit of and distributed to other governments. When the fines and forfeitures are collected, no further action is needed to release the assets to the beneficiaries. Measurement Focus Government-wide Financial Statements The government-wide �nancial statements are prepared using the economic resources measurement focus. All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of the City are included on the statement of net position. The statement of activities presents increases (e.g. revenues) and decreases (e.g. expenses)in total net position. Fund Financial Statements All governmental funds are accounted for using a flow of current financial resources measurement focus. With this measurement focus, only current assets and deferred outflows of resources and current liabilities and deferred inflows of resources, generally, are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances reports on the sources (i.e., revenues and other financing sources) and uses (i.e., expenditures and other financing uses) of current financial resources. This approach differs from the manner in which the governmental activities of the government-wide financial statements are prepared. Governmental fund financial statements therefore include a reconciliation with brief explanations to better identify the relationship between the government-wide statements and the statements for governmental funds. - 33 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Like the government-wide statements, all proprietary and fiduciary funds are accounted for on a flow of economic resources measurement focus. All assets and deferred outflows of resources and all liabilities and deferred inflows of resources associated with the operation of these funds are included on the statement of fund net position. In fiduciary funds, a liability to the beneficiaries of fiduciary activity is recognized when an event has occurred that compels the government to disburse fiduciary resources. Fiduciary fund liabilities other than those to beneficiaries are recognized using the economic resources measurement focus. For proprietary funds, the statement of changes in fund net position presents increases (i.e.,revenues) and decreases (i.e., expenses) in net total position. The statement of cash flows provides information about how the City finances and meets the cash flow needs of its proprietary activities. Fiduciary funds present a statement of changes in fiduciary net position, which reports additions to and deductions from investment trust,private purpose trust funds, and custodial funds. Basis of Accounting Basis of accounting determines when transactions are recorded in the financial records and reported on the financial statements. Government-wide financial statements are prepared using the accrual basis of accounting; proprietary and fiduciary funds also use the accrual basis of accounting. Governmental funds use the modified accrual basis of accounting. Differences in the accrual and modified accrual basis of accounting arise in the recognition of revenue, in the recording of deferred outflows/inflows of resources, and in the presentation of expenses versus expenditures. Revenues-Exchange and Non-Exchange Transactions Revenue resulting from exchange transactions, in which each party gives and receives essentially equal value, is recorded on the accrual basis when the exchange takes place. On a modified accrual basis,revenue is recorded in the year in which the resources are measurable and become available. Available means that the resources will be collected within the current year or are expected to be collected soon enough thereafter to be used to pay liabilities of the current year. For the Ciry, available means expected to be received within sixty days of year-end. Non-exchange transactions, in which the City receives value without directly giving equal value in return, include income taxes, property taxes, grants, entitlements and donations. On an accrual basis, revenue from income taxes is recognized in the period in which the income is earned. Revenue from property taxes is recognized in the year for which the taxes are levied. (See Note 6.) Revenue from grants, entitlements and donations is recognized in the year in which all eligibility requirements have been satisfied. Eligibility requirements include timing requirements, which specify the year when the resources are required to be used or the year when use is first permitted, matching requirements, in which the City must provide local resources to be used for a specified purpose, and expenditure requirements, in which the resources are provided to the City on a reimbursement basis. On a modified accrual basis, revenue from non-exchange transactions must also be available before it can be recognized. Under the modified accrual basis,the following revenue sources are considered to be both measurable and available at year-end: income taxes, EMS services, state-levied locally shared taxes (including gasoline tax and motor vehicle license fees), grants, and rentals. Deferred Outflows/Inflows of Resources In addition to assets, the statements of financial position will sometimes report a separate section for deferred outflows of resources. Deferred outflows of resources, represents a consumption of net assets that applies to a future period and will not be recognized as an outflow of resources (expense/expenditure) until then. For the City, deferred outflows of resources include asset retirement obligations, deferred charges on refunding, pension and OPEB reported on the - 34 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 government-wide statement of net position. The deferred outflows of resources related to asset retirement obligations is originally measured at the amount of the corresponding liability. This amount is expensed in a systematic and rational manner over the tangible asset's useful life. Deferred charges on refunding result 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 deferred outflows of resources related to pension and OPEB plans are explained in Notes 12 and 13. In addition to liabilities, the statements of financial position report a separate section for deferred inflows of resources. Deferred inflows of resources represent an acquisition of net assets that applies to a future period and will not be recognized until that time. For the City, deferred inflows of resources include property taxes, leases, pension, OPEB, and unavailable revenue. Property taxes represent amounts for which there is an enforceable legal claim as of December 31, 2022,but which were levied to finance 2023 operations. These amounts have been recorded as a deferred inflow on both the government-wide statement of net position and the governmental fund financial statements. The deferred inflow for leases is related to leases receivable and is being recognized as lease revenue in a systematic and rational manner over the term of the lease. Unavailable revenue is reported only on the governmental funds balance sheet, and represents receivables which will not be collected within the available period. For the City, unavailable revenue includes delinquent property taxes, municipal income taxes, charges for services, intergovernmental grants, special assessments, and miscellaneous revenues. These amounts are deferred and recognized as an inflow of resources in the period the amounts become available. The details of these unavailable revenues are identified on the reconciliation of total governmental fund balance to net position of governmental activities found on page 20. Deferred inflows of resources related to pension and OPEB plans are reported on the government-wide statement of net position (see Notes 12 and 13). Expenses/Expenditures On the accrual basis of accounting, expenses are recognized at the time they are incurred. The measurement focus of governmental fund accounting is on decreases in net financial resources (expenditures) rather than expenses. Expenditures are generally recognized in the accounting period in which the related fund liability is incurred, if ineasurable. Allocations of cost, such as depreciation and amortization, are not recognized in governmental funds. Budgetary Process All funds, except custodial funds, are legally required to be budgeted and appropriated. Budgetary information far the debt urban redevelopment tax increment equivalents debt service fund and capital urban redevelopment tax increment equivalents capital projects fund are not reported because it is not included in the entity for which the "appropriated budget" is adopted. The major documents prepared are the tax budget, the certificate of estimated resources, and the appropriations ordinance, all of which are prepared on the budgetary basis of accounting. The tax budget demonstrates a need for existing or increased tax rates. The certificate of estimated resources establishes a limit on the amount Council may appropriate. The appropriations ordinance is Council's authorization to spend resources and sets annual limits on expenditures plus encumbrances at the level of control selected by Council. The legal level of budgetary control is at the personal services and other object level within each department for a11 funds. Budgetary modifications may only be made by ordinance of the City Council at the legal level of control. The certificate of estimated resources may be amended during the year if projected increases or decreases in revenue are identified by the finance director. The amounts reported as the original and final budgeted amounts on the budgetary statements reflect the amounts on the certificate of estimated resources when the original and final appropriations were enacted by Council. - 35 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 The appropriation resolution is subject to amendment throughout the year with the restriction that appropriations cannot exceed estimated resources. The amounts reported as the original budgeted amounts reflect the first appropriation resolution for that fund that covered the entire year, including amounts automatically carried forward from prior years. The amounts reported as the final budgeted amounts represent the final appropriation amounts passed by Council during the year. Equity in Pooled Cash and Cash Equivalents To improve cash management, cash received by the City is pooled. Individual fund integrity is maintained through the City's records. Investment earnings and other interest in the pool is presented as "equity in pooled cash and cash equivalents". The City has segregated bank accounts for monies held separate from the City's central bank account. These interest-bearing depository accounts are presented as "cash and cash equivalents in segregated accounts" since they are not required to be deposited into the City treasury. The City is financing the construction of a new field house as part of the new school in the Brecksville- Broadview Heights City School District, which the School District is holding as fiscal agent as part of the total construction of the school building. The balances in these accounts are presented on the statement of fund net position as "cash and cash equivalents with fiscal agent." The City utilizes a financial institution to service revenue bonded debt as principal and interest payments come due and the urban redevelopment renovation payments as prescribed by the agreement when they come due. The balances in these accounts are presented on the statement of net position as "cash and cash equivalents with escrow agent." During 2022, investments were limited to STAR Ohio, American treasury obligation fund accounts, government securities, negotiable certificates of deposit, municipal securities, Tennessee Valley authority bonds, US treasury bonds and notes, and commercial paper. STAR Ohio (the State Treasury Asset Reserve of Ohio), is an investment pool managed by the State Treasurer's Office which allows governments within the State to pool their funds for investment purposes. STAR Ohio is not registered with the SEC as an investment company, but has adopted Government Accounting Standards Board (GASB), Statement No. 79, Certain External Investment Pools and Pool Participants. The City measures their investment in STAR Ohio at the net asset value (NAV) per share provided by STAR Ohio. The NAV per share is calculated on an amortized cost basis that provides an NAV per share that approximates fair value. For 2022, there were no limitations or restrictions on any participant withdrawals due to redemption notice periods, liquidity fees, or redemption gates; however, 24 hours advance notice for deposits and withdrawals of $100 million or more is encouraged. STAR Ohio reserves the right to limit the transactions to $250 million per day, requiring the excess amount to be transacted the following business day(s), but only to the $250 million limit. All accounts of the participant will be combined for these purposes. American treasury obligation fund accounts, governmental securities, negotiable certificates of deposit, municipal securities, Tennessee Valley authority bonds, US treasury bonds and notes, and commercial paper are reported at fair value, which is based on quoted market prices. Gains (or losses) to fair value are booked annually as "investment earnings and other interest." The fair value of investments continued to decline during 2022,resulting in negative investment earnings and other interest revenue of($561,260) in governmental activities. - 36 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Investment procedures are restricted by the provisions of the Ohio Revised Code. Investment earnings and other interest revenue is distributed to all funds. Investment earnings and other interest revenue credited to the general fund during 2022 amounted to($110,472),of which$34,690 was assigned from other funds. Investments of the cash management pool and investments with an original maturity of three months or less at the time they are purchased by the Ciry are presented on the financial statements as cash equivalents. Materials and Supplies Inventory Inventories are presented at cost on a first-in, first-out basis and are expended/expensed when used. Inventory consists of expendable supplies. Prepaid Items Payments made to vendors for services that will benefit periods beyond December 31, 2022, are recorded as prepaid items using the consumption method by recording a current asset for the prepaid amount and reflecting the expenditure/expense in the year in which services are consumed. Assets Held for Resale Assets held for resale represent various land and buildings received by the City,which will be sold. Restricted Assets Assets are reported as restricted when limitations on their use change in nature or normal understanding of the availability of the asset. Such constraints are either externally imposed by creditors, contributors, grantors, or laws of other governments or imposed by law through constitutional provisions or enabling legislation. Restricted assets in the general fund and community center special revenue fund represent money set aside for unclaimed monies and amounts held for contractors. Restricted assets in the debt urban redevelopment tax increment equivalents debt service fund represent money set aside for bond principal and interest payments. Restricted assets in the capital urban redevelopment tax increment equivalents capital projects fund represent money set aside for the multi-use residential properties and commercial facilities. Capital Assets The City's only capital assets are general capital assets. General capital assets are capital assets which are associated with and generally arise from governmental activities. They generally result from expenditures in the governmental funds. General capital assets are reported in the governmental activities column of the government-wide statement of net position but are not reported in the fund fmancial statements. All capital assets (except for intangible right-to-use lease assets which are discussed later) are capitalized at cost(or estimated historical cost)and updated for additions and retirements during the year. The City was able to estimate the historical cost for the initial reporting of infrastructure by backtrending (i.e., estimating the current replacement cost of the infrastructure to be capitalized and using an appropriate price-level index to deflate the cost to the acquisition year or estimated acquisition year). Donated capital assets are recorded at their acquisition values as of the date received. The City maintains a capitalization threshold of $5,000. Improvements are capitalized; the costs of normal maintenance and repairs that do not add to the value of the asset or materially extend an asset's life are not. - 37 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 All reported capital assets are depreciated, except for land and construction in progress. Improvements are depreciated over the remaining useful lives of the related capital assets. Useful lives for infrastructure were estimated based on the City's historical records of necessary improvements and replacement. Depreciation is computed using the straight-line method over the following useful lives: Description Estimated Lives Land N/A Land Improvements 5 - 50 years Buildings and Improvements 5 -60 years Machinery and Equipment 3 - 50 years Furniture and Fixtures 5 -40 years Infrastructure 10-99 years The City's infrastructure consists of roads, sidewalks,guardrails,traffic signals, storm sewers, sanitary sewers, and water lines and includes infrastructure acquired prior to December 31, 1980. The City is reporting intangible right to use assets related to leased equipment. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date,plus certain initial direct costs. Subsequently,these intangible assets are being amortized in a systematic and rational manner over the shorter of the lease term or the useful life of the underlying asset. Interfund Balances On fund financial statements, outstanding interfund loans and unpaid amounts for interfund services are reported as "interfund receivables/payables." Interfund balance amounts are eliminated in the statement of net position. Pensions/Other Postemployment Benefits(OPEB) For purposes of ineasuring the net pension/OPEB asset/liabilities, deferred outflows of resources and deferred inflows of resources related to pensions/OPEB, and pension/OPEB expense, information about the fiduciary net position of the pension/OPEB plans and additions to/deductions from their fiduciary net position have been determined on the same basis as they are reported by the pension/OPEB plans. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. The pension/OPEB plans report investments at fair value. Compensated Absences Vacation benefits are accrued as a liability as the benefits are earned if the employees' rights to receive compensation are attributed to services already rendered and it is probable that the City will compensate the employees for the benefits through paid time off or some other means. The City records a liability for accumulated unused vacation time when earned for all employees with more than one year of service. Since the City's policy limits the accrual of vacation time to one year from the employee's anniversary date, the outstanding liability is recorded as "vacation benefits payable" on the statement of net position rather than as a long-term liability. Sick leave benefits are accrued as a liability using the termination method. An accrual for sick leave is made to the extent that it is probable that benefits will result in termination payments. The liability is an estimate based on the City's past experience of making termination payments. - 38 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Accrued Liabilities and Long-Term Obligations All payables, accrued liabilities and long-term obligations are reported in the government-wide financial statements, and all payables, accrued liabilities and long-term obligations payable from the proprietary fund are reported on the proprietary fund financial statements. In general, governmental fund payables and accrued liabilities that, once incurred, are paid in a timely manner and in full from current financial resources, are reported as obligations of the funds; however, claims and compensated absences that will be paid from governmental funds are reported as a liability in the fund financial statements only to the extent that they are due for payment during the current year. Bonds, bond anticipation notes, long-term loans, and leases are recognized as a liability on the governmental fund financial statements when due. Net pension/OPEB liabilities should be recognized in the governmental funds to the extent that benefit payments are due and payable and the pension/OPEB plans' fiduciary net position is not sufficient for payment of those benefits. Fund Balance Fund balance is divided into five classifications based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the governmental funds. The classifications are as follows: Nonspendable The nonspendable fund balance category includes amounts that cannot be spent because they are not in spendable form, or legally or contractually required to be maintained intact. The "not in spendable form" criterion includes items that are not expected to be converted to cash. It also includes property acquired for resale and the long-term amount of interfund loans, unless the use of the proceeds from the sale of those properties and the proceeds from the collection of those receivables are restricted, committed, or assigned. Restricted Fund balance is reported as restricted when constraints placed on the use of resources are either externally imposed by creditors (such as through debt covenants), grantors, contributors, or laws or regulations of other governments or is imposed by law through constitutional provisions ar enabling legislation(City ordinances). Enabling legislation authorizes the City to assess, levy, charge, or otherwise mandate payment of resources (from external resource providers) and includes a legally enforceable requirement that those resources be used only for the specific purposes stipulated in the legislation. Legal enforceability means that the City can be compelled by an external party-such as citizens, public interest groups, or the judiciary to use resources created by enabling legislation only for the purposes specified by the legislation. Committed The committed fund balance classification includes amounts that can be used only for the specific purposes imposed by the highest level formal action (ordinance or resolution, as both are equally binding) of City Council. Those committed amounts cannot be used for any other purpose unless City Council removes or changes the specified use by taking the same type of action (ordinance or resolution) it employed to previously commit those amounts. In contrast to fund balance that is restricted by enabling legislation, the committed fund balance classification may be redeployed for other purposes with appropriate due process. Constraints imposed on the use of committed amounts are imposed by City Council, separate from the authorization to raise the underlying revenue; therefore, compliance with these constraints is not considered to be legally enforceable. Committed fund balance also incorporates contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. - 39 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Assigned Amounts in the assigned fund balance classification are intended to be used by the City for specific purposes but do not meet the criteria to be classified as restricted or committed. In governmental funds other than the general fund, assigned fund balance represents the remaining amount that is not restricted or committed. These amounts are assigned by City CounciL In the general fund, assigned amounts represent intended uses established by City Council or a City official delegated that authority by City Charter or ordinance or by State statute. State statute authorizes the finance director to assign fund balance for purchases on order provided such amounts have been lawfully appropriated. City Council assigned fund balance to cover a gap between estimated revenue and appropriations in the 2023 appropriated budget. Ilnassigned Unassigned fund balance is the residual classification for the general fund and includes all spendable amounts not contained in the other classifications. In other governmental funds, the unassigned classification is used only to report a deficit balance. The City applies restricted resources first when expenditures are incurred for purposes for which either restricted or unrestricted (committed, assigned, and unassigned) amounts are available. Similarly, within unrestricted fund balance, committed amounts are reduced first followed by assigned, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of the unrestricted fund balance classifications could be used. Net Position Net position represents the difference between all other elements in the statement of net position. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Amounts restricted for pension plans represent the restricted asset after considering the related deferred outflows and deferred inflows. Net position restricted for other purposes included resources which will be used for unclaimed monies,Natureworks grants, recycling demolition grant, and tree programs. The City applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted net position is available. Operating Revenues and Expenses Operating revenues are those revenues that are generated directly from the primary activity of the proprietary fund. For the City, these revenues are charges for services for self-insurance programs. Operating expenses are necessary costs incurred to provide the service that is the primary activity of the fund. Revenues and expenses not meeting these defmitions are reported as nonoperating. OneOhio Opioid Settlement Monies During 2021, Ohio reached an agreement with the three largest distributors of opioids. Although the settlement has been reached, uncertainties remain related to measurement. As a participating subdivision, the City received the first of eighteen distributions in 2022. This distribution of$2,083 is reflected as fines, forfeitures and settlements revenue in the OneOhio Opioid Settlement special revenue fund in the accompanying financial statements. -40 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Internal Activity Transfers between governmental activities are eliminated on the government wide �nancial statements. Internal allocations of overhead expenses from one function to another or within the same function are eliminated on the statement of activities. Interfund payments for services provided and used are not eliminated. Exchange transactions between funds are reported as revenues in the seller funds and as expenditures/expenses in the purchaser funds. Flows of cash or goods from one fund to another without a requirement for repayment are reported as interfund transfers. Interfund transfers are reported as other financing sources/uses in governmental funds. Repayments from funds responsible for particular expenditures/expenses to the funds that initially paid for them are not presented on the financial statements. Premiums and Discounts On the government-wide financial statements, premiums and discounts are amortized over the term of the debt issuance using the straight-line method. Debt issuances are reported net of the applicable premium or discount. On the governmental fund statements, premiums and discounts are recognized in the period in which the debt issuances are issued. Under Ohio law,premiums on the original issuance of debt are to be deposited to the debt service fund to be used for debt retirement and are precluded from being applied to the project fund. Ohio law does allow premiums on refunding debt to be used as part of the payment to the bond escrow agent. Deferred Charges on Refunding On the government-wide financial statements,the difference between the reacquisition price (funds required to refund the old debt) and the net carrying amount of the old debt, the gain/loss on the refunding, is being amortized as a component of interest expense. This deferred amount is amortized over the life of the old or new debt, whichever is shorter, using the effective interest method and is presented as deferred outflows of resources on the statement of net position. Leases The City serves as both lessee and lessor in various noncancellable leases. These leases are accounted for as follows: Lessee At the commencement of a lease, the City initially measures the lease liability at the present value of payments expected to be made during the lease term. Subsequently, the lease liability is reduced by the principal portion of lease payments made. The lease asset is initially measured as the initial amount of the lease liability, adjusted for lease payments made at or before the lease commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a straight-line basis over its useful life. Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on the statement of net position. Lessor At the commencement of a lease, the City initially measures the lease receivable at the present value of payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by the principal portion of lease payments received. In most cases, the deferred inflow of resources is initially measured as the initial amount of the lease receivable, adjusted for lease payments received at or before the lease commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the life of the lease term. -41 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Estimates The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results may differ from those estimates. Note 3 — Changes in Accounting Principles and Restatement of Fund Balances and Net Position Changes in Accounting Principles For fiscal year 2022, the City implemented Governmental Accounting Standards Board (GASB) Statement No. 87, Leases and related guidance from (GASB) Implementation Guide No. 2019-3, Leases. The City also implemented GASB Statement No. 91, Conduit Debt Obligations, GASB Statement No. 92, Omnibus 2020, GASB Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans, and Implementation Guide No. 2020-1. GASB Statement 87 enhances the relevance and consistency of information of the government's leasing activities. It establishes requirements for lease accounting based on the principle that leases are financings of the right to use an underlying asset. A lessee is required to recognize a lease liability and an intangible right to use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. These changes were incorporated in the City's 2022 financial statements. The City recognized $1,215,201 in leases receivable at January 1, 2022; however, $1,213,327 was offset by the deferred inflows related to leases. The difference of$1,874 is due to amounts received by lessees after the end of the prior year but that were due prior to the end of the year. The City also recognized $2,936 in leases payable at January 1, 2022 which was offset by the intangible asset,right to use lease—equipment. GASB 91 clarifies the existing definition of a conduit debt obligation; establishing that a conduit debt obligation is not a liability of the issuer; establishing standards for accounting and financial reporting of additional commitments and voluntary commitments extended by issuers and arrangements associated with conduit debt obligations; and improving required note disclosures. GASB 92 addresses a variety of topics including reporting by public entity risk pools for amounts that are recoverable from reinsurers or excess insurers and references to nonrecurring fair value measurements of assets or liabilities in authoritative literature. These changes did not impact the City's financial statements. GASB 97, among other items, requires that a Section 457 plan be classified as either a pension plan or an other employee benefit plan depending on whether the plan meets the definition of a pension plan. The changes for GASB 91 and GASB 97 were incorporated in the City's 2022 fmancial statements; however, there was no effect on beginning net position/fund balance. -42 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Restatement of Fund Balances and Net Position The implementation of GASB 87 had the following effect on fund balances: General Obligation General Fire Bond Municipal General Department Retirement Improvement Fund Balances December 31,2021 $17,122,757 $1,260,796 $803,861 $1,154,939 GASB 87 1,874 0 0 0 Restated Fund Balances December 31,2021 $17,124,631 $1,260,796 $803,861 $1,154,939 Other Total Buildings and Road Governmental Governmental Improvements Improvements Funds Funds Fund Balances December 31,2021 $1,748,364 $389,497 $7,894,291 $30,374,505 GASB 87 0 0 0 1,874 Restated Fund Balances December 31,2021 $1,748,364 $389,497 $7,894,291 $30,376,379 The implementation of GASB 87 increased governmental activities net position at December 31, 2021 in the amount of$1,874, from$99,352,571 to $99,354,445. Note 4—Budgetary Basis of Accounting While the City is reporting financial position,results of operations and changes in fund balance on the basis of generally accepted accounting principles (GAAP), the budgetary basis as provided by 1aw is based upon accounting for certain transactions on a basis of cash receipts, disbursements and encumbrances. The Statement of Revenues,Expenditures and Changes in Fund Balances-Budget(Non-GAAP Basis)and Actual, presented for the general and fire department funds, is presented on the budgetary basis to provide a meaningful comparison of actual results with the budget. The major differences between the budget basis and GAAP basis are as follows: 1. Revenues are recorded when received in cash (budget) as opposed to when susceptible to accrual (GAAP). 2. Investments reported at cost(budget)rather than fair value(GAAP). 3. Advances In and Advances Out are operating transactions (budget) as opposed to balance sheet transactions(GAAP). -43 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 4. Expenditures are recorded when paid in cash (budget) as opposed to when the liability is incurred (GAAP). 5. Encumbrances are treated as expenditures (budget) rather than as restricted, committed, or assigned fund balances(GAAP). Adjustments necessary to convert the results of operations at the end of the year on the GAAP basis to the Budget basis are as follows: Net Change in Fund Balance General Fund and Fire Department Special Revenue Fund Fire General Department GAAP Basis ($739,214) $195,812 Net Adjustment for Revenue Accruals 247,478 971 Beginning Fair Value Adjustment for Investments (72,319) 0 Ending Fair Value Adjustment for Investments 381,755 54,444 Advances In 300,000 0 Advances Out (2,579,898) 0 Net Adjustment for Expenditure Accruals (2,824,143) 10,785 Encumbrances (1,106,775) (32,210) Budget Basis ($6,393,116) $229,802 Note 5—Deposits and Investments The City is a charter City and follows their established investment policy. The City has elected to follow the provisions of State statute and classify monies held by the City into three categories. Active deposits are public deposits determined to be necessary to meet current demands upon the City treasury. Active monies must be maintained either as cash in the City treasury, in commercial accounts payable or withdrawable on demand, including negotiable order of withdrawal (NOW) accounts, or in money market deposit accounts. Inactive deposits are public deposits that Council has identified as not required far use within the current five year period of designation of depositories. Inactive deposits must either be evidenced by certificates of deposit maturing not later than the end of the current period of designation of depositories, or by savings or deposit accounts including,but not limited to,passbook accounts. Interim deposits are deposits of interim monies. Interim monies are those monies which are not needed for immediate use but which will be needed before the end of the current period of designation of depositories. Interim deposits must be evidenced by time certificates of deposit maturing not more than one year from the date of deposit or by savings or deposit accounts including passbook accounts. -44 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Interim monies held by the City can be deposited or invested in the following securities: 1. United States Treasury bills, bonds notes, or any other obligation or security issued by the United States Treasury, or any other obligation guaranteed as to principal and interest by the United States; 2. Bonds, notes, debentures, or any other obligations or securities issued by any federal government agency or instrumentality, including, but not limited to, Federal National Mortgage Association, Federal Home Loan Bank, Federal Farm Credit Bank, Federal Home Loan Mortgage Corporation, and Government National Mortgage Association. All federal agency securities shall be direct issuances of federal government agencies or instrumentalities; 3. No-load money market mutual funds consisting exclusively of obligations described in (1) or (2) and repurchase agreements secured by such obligations, provided that investments in securities described in this division are made only through eligible institutions; 4. Time certificates of deposit or savings or deposit accounts including, but not limited to, passbook accounts; 5. Bonds and other obligations of the State of Ohio, and with certain limitations including a requirement for maturity within ten years from the date of settlement, bonds and other obligations of political subdivision of the State of Ohio, if training requirements have been met; 6. The State Treasurer's investment pool(STAR Ohio); 7. Certain bankers' acceptances (for a period not to exceed one hundred eighty days) and commercial paper notes (for a period not to exceed two hundred seventy days) in an amount not to exceed 40 percent of the interim monies available for investment at any one time if training requirements have been met; and 8. Written repurchase agreements in the securities described in (1) or (2) provided the market value of the securities subject to the repurchase agreement must exceed the principal value of the agreement by at least two percent and be marked to market daily, and the term of the agreement must not exceed thirty days. Investments in stripped principal or interest obligations, reverse repurchase agreements, and derivatives are prohibited. The issuance of taxable notes for the purpose of arbitrage, the use of leverage and short selling are also prohibited. Investments may only be made through specified dealers and institutions. Payment for investments may be made only upon delivery of the securities representing the investments to the treasurer or, if the securities are not represented by a certificate,upon receipt of confirmation of transfer from the custodian. The City has passed an ordinance allowing the City to invest monies not required to be used for a period of six months or more in the following: 1. Bonds of the State of Ohio; -45 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 2. Bonds of any municipal corporation, village, county, township, or other political subdivision of this State, as to which there is no default of principal, interest or coupons; and 3. Obligations of the City. Deposits Custodial Credit Risk Custodial credit risk for deposits is the risk that in the event of a bank failure, the City will not be able to recover deposits ar collateral securities that are in the possession of an outside party. At December 31, 2022, $619,820 of the City's bank balance of $3,509,893 was exposed to custodial credit risk because those deposits were uninsured and uncollateralized. One of the City's financial institutions that participates in the Ohio Pooled Collateral System (OPCS) and was approved far a reduced collateral floor of 50 percent resulting in the uninsured and uncollateralized balance. The City has no deposit policy for custodial risk beyond the requirements of State statute. Ohio law requires that deposits either be insured or be protected by: Eligible securities pledged to the City and deposited with a qualified trustee by the financial institution as security for repayment whose market value at all times shall be at least 105 percent of the deposits being secured; or Participation in the Ohio Pooled Collateral System (OPCS), a collateral pool of eligible securities deposited with a qualified trustee and pledged to the Treasurer of State to secure the repayment of all public monies deposited in the financial institution. OPCS requires the total market value of the securities pledged to be 102 percent of the deposits being secured or a rate set by the Treasurer of State. Investments Investments are reported at fair value. As of December 31, 2022, the City had the following investments: Standard Percent of Measurement &Poor's Tota1 MeasuremenUInvestment Amount Maturity Rating Investments Net Asset Value Per Share: STAR Ohio $9,836,330 Average of 31.9 Days AAAm 30.59 % Fair Value-Level 1 Input: American Treasury Obligation Fund 696,727 Less than one year AAAm N/A Fair Value-Level 2 inputs: Federal Home Loan Bank Notes 2,734,969 Less than five years AA+ 8.51 Federal Home Loan Mortgage Corporation Notes 1,043,480 Less than three years AA+ N/A Federal Farm Credit Bank Notes 2,997,611 Less than five years AA+ 932 Federal National Mortgage Association Notes 644,797 Less than three years AA+ N/A Negotiable Certificates of Deposit 3,077,818 Less than five years N/A 9.57 Municipal Securities 252,187 Less than one year AA N/A Tennessee Valley Authority Bonds 228,693 Less than three years AA+ N/A US Treasury Bonds and Notes 9,386,058 Less than five years AA+ 29.19 Commercial Paper 1,256,585 Less than one year A-1/A-1+ N/A Total Fair Value-Leve12 Inputs 21,622,198 Total Investments $32,155,255 -46 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. The preceding chart identifies the City's recurring fair value measurements as of December 31, 2022. The American Treasury Obligation Fund is measured at fair value and is valued using quoted market prices (Level 1 inputs). The City's remaining investments measured at fair value are valued using methodologies that incorporate market inputs such as benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications. Market indicators and industry and economic events are also monitored, which could require the need to acquire further market data. (Leve12 inputs). Interest Rate Risk As a means of limiting its exposure to fair value losses caused by rising interest rates, the City's investment policy requires that operating funds be invested primarily in short-term investments maturing within five years from the date of purchase and that the City's investment portfolio be structured so that securities mature to meet cash requirements for ongoing operations and/or long-term debt payments. To date, no investments have been purchased with a life greater than five years. The stated intent of the policy is to avoid the need to sell securities prior to maturity. Credit Risk Ohio law requires that STAR Ohio maintain the highest rating provided by at least one nationally recognized standard rating service. The City has no investment policy that addresses credit risk. Concerztration of Credit Risk The City places no limit on the amount it may invest in any one issuer. Note 6—Receivables Receivables at December 31, 2022, consisted primarily of accrued interest on investments; accounts (billings for user charged services, licenses and permits, rentals, and miscellaneous reimbursements); interfund; intergovernmental receivables arising from grants, entitlements, and shared revenues; municipal income taxes; property taxes; special assessments; and leases. No allowance for doubtful accounts has been recorded because uncollectible amounts are expected to be insignificant. A11 receivables except for special assessments, delinquent property taxes, and leases are expected to be collected within one year. Property taxes, although ultimately collectible, include some portion of delinquencies that will not be collected within one year. Special assessments expected to be collected in more than one year amount to $442,277 in the special assessments bond retirement fund. At December 31, 2022, the amount of delinquent special assessments was $11,528. -47 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Property Taxes Property taxes include amounts levied against all real and public utility property located in the City. Property tax revenue received during 2022 for real and public utility property taxes represents collections of 2021 taxes. 2022 real property taxes were levied after October 1, 2022, on the assessed value as of January 1, 2022, the lien date. Assessed values are established by State law at 35 percent of appraised market value. 2022 real property taxes are collected in and intended to finance 2023. Real property taxes are payable annually or semi-annually. If paid annually, payment is due December 31; if paid semi-annually, the first payment is due December 31, with the remainder payable by June 20. Under certain circumstances, State statute permits later payment dates to be established. Public utility tangible personal property currently is assessed at varying percentages of true value; public utility real property is assessed at 35 percent of true value. 2022 public utility property taxes which became a lien December 31, 2021, are levied after October 1, 2022, and are collected in 2023 with real property taxes. The full tax rate for all City operations for the year ended December 31, 2022, was $8.21 per $1,000 of assessed value. The assessed values of real property and public utility tangible property upon which 2022 property tax receipts were based are as follows: Assessed Category Value Real Estate: Residential/Agricultural $639,519,870 Other Real Estate 121,639,410 Tangible Personal Property Public Utility 22,541,280 Total Assessed Values $783,700,560 The County Fiscal Officer collects property taxes on behalf of all taxing districts in the county, including the City. The County Fiscal Officer periodically remits to the City its portion of the taxes collected. Property taxes receivable represents real and public utility property taxes and outstanding delinquencies which were measurable as of December 31, 2022, and for which there was an enforceable legal claim. In governmental funds, the portion of the receivable not levied to finance 2022 operations is offset to deferred inflows of resources—property taxes. On the accrual basis, collectible delinquent property taxes have been recorded as a receivable and revenue, while on the modified accrual basis the revenue has been reported as deferred inflows of resources—unavailable revenue. Leases Receivable The City is reporting leases receivable of$1,682,892 in the general fund at December 31, 2022. These amounts represent the discounted future lease payments. This discount is being amortized using the interest method. For 2022, the City recognized lease revenue of$66,844 and interest revenue of$58,292 in the general fund related to lease payments received. A description of the City's leasing arrangements is as follows: Cell Tower Lease — The City has entered into a lease agreement for a cell tower with New Cingular Wireless. The lease commencement began in 2018 and will mature in 10 years through 2028. This lease is collected monthly. -48 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Building Leases — The City has entered into various lease agreements for buildings with multiple companies at varying years and terms as follows: Lease Lease Commencement Ending Payment Company Date Years Date Method Brecksville Cooperative Pre-School Building 10 2019 11 2030 Quarterly South Suburban Montessori Building 7 2019 15 2034 Monthly South Suburban Montessori Building 6 2022 27 2049 Monthly Chagrin Valley Dispatch CouncIl Building 2 2022 5 2027 Quarterly Chagrin Valley Dispatch Council Building 12 2022 5 2027 Monthly A summary of future lease revenue in tbe general fund is as follows: Year Principal Interest 2023 $84,389 $57,628 2024 87,112 53,788 2025 ll1,449 51,132 2026 125,390 46,791 2027 ll0,733 42,332 2028-2032 587,497 147,441 2033-2037 271,365 49,657 2038-2042 109,249 31,681 2043-2047 144,503 15,961 2048-2049 51,205 1,023 Total $1,682,892 $497,434 Income Tax The City levies a municipal income tax of two percent on substantially all income earned within the City. This tax also applies to the net income of businesses operating within the City. Residents of the City are granted 100 percent credit for taxes paid to other municipalities, with the exception of tax years 2015 through 2020 where 87.5 percent credit was granted. Employers within the City are required to withhold income tax on employee compensation and remit the tax to the City either monthly or quarterly, as required. Corporations and other individual taxpayers are required to pay their estimated tax quarterly and file a declaration annually. In 2022, by City ordinance, $3,020,004 of total income tax proceeds are credited to the following capital projects funds: $960,000 to the general municipal improvement fund, $1,700,004 to the buildings and improvements fund and $360,000 to the road improvements fund. The Regional Income Tax Agency administers and collects income taxes for the Ciry. Payments are remitted monthly net of collection fees of approximately three percent. -49 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Intergovernmental Receivables A summary of the intergovernmental receivables follows: Governmental Activities: County District 13 Grant Projects $4,333,412 NEORSD Grants 2,824,017 ODSA Roadwork Development Grant 600,000 County Improvement Grant 459,176 Excise and Gasoline Tax 381,324 Homestead and Rollback 350,387 County Community Grant 250,000 ODOT Grants 198,346 Local Government ll3,489 Ohio Attorney General EMS Collections 101,026 ODNR Community Grant 73,500 Ohio Office of Criminal Justice Body Worn Camera Grant 69,120 Auto Registration 50,779 County Planning Grant 24,182 DARE Grant 23,994 Permissive Tax 18,414 Cleveland Water Road Repair Reimbursements 1,625 Ohio Attorney General Restitution Collections 1,151 County Police Training Grant 750 Field House Project Reimbursements 700 EMS Grant 696 Fines &Forfeitures from Garfield Heights Municipal Court 200 Total $9,876,288 Payments in Lieu of Taxes According to State law, the City has established tax incremental financing districts within the City under which the City has granted property tax exemptions and agreed to construct certain infrastructure improvements. The property owners have agreed to make payments to the City to help pay the costs of the infrastructure improvements. The amount of those payments generally reflects all or a portion of the property taxes which the property owners would have paid if the property had not been declared exempt. The property owners' contractual promise to make these payments in lieu of taxes generally continues until the costs of the improvement have been paid or the agreement expires, whichever occurs first. Future development by these owners or others may result in subsequent agreements to make payments in lieu of taxes and may therefore spread the costs of the improvements to a larger number of property owners. Collection of payments in lieu of taxes are anticipated to be received in 2024 and therefore no receivable exists at year end. - 50 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 7—Tax Abatements As of December 31, 2022, the City provides tax abatements through two economic development agreements. Pursuant to Council Ordinance, the City established these economic development agreements to provide income tax abatements to encourage employment growth in the City. Abatements are obtained if the entity meets the established level of employment. The amount of the abatement is refunded to the recipient. The City's net income tax value was reduced by$446,188 through expenses during 2022. Note 8—Risk Management Property and Liabiliry The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees and natural disasters. During 2022, the City contracted with Wichert Insurance Services and Curtis Insurance Services for various types of insurance as follows: Company Type of Coverage Coverage Amount Wichert Insurance Services Blanket Building/Contents $93,450,837 Boiler and Machinery Unlimited Inland Marine 2,038,500 Crime 1,000,000 Public Officials Liability 1,000,000 General Liability 2,000,000 Garage Keepers Liability 120,000 Auto 1,000,000 Umbrella Liability 10,000,000 Abuse and Molestation 1,000,000 Cyber Liability 2,000,000 Curtis Insurance Services Law Enforcement 1,000,000 Settled claims have not exceeded commercial coverage in any of the last five years. There were no significant reductions in coverage from the prior year. Workers'Compensation The City participates in the Ohio Association of Public Treasurer's (OAPT) group rating pool (See Note 21). The intent of the OAPT is to achieve the benefit of a reduced premium for the participants, foster safer working environments and foster cost-effective claims management by virtue of its grouping and representation with other participants. The workers' compensation experience rating of the participating cities is calculated as one experience and a common premium rate is applied to all cities in the group. Each participant pays its warkers' compensation premium to the State based on the rate for the OAPT group rather than its individual rate. Participation in the OAPT group is limited to cities that can meet the OAPT's selection criteria. The firm of Sedgwick Claims Management Service, Incorporated provides administrative, cost control, and actuarial services to the OAPT. - 51 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Einployee Insurance Benefits The City manages employee prescriptions and health benefits on a self-insured basis. The employee health benefit plan provides basic health coverage through Medical Mutual, the third-party administrator of the program, which reviews and pays the claims. A specific excess loss coverage insurance (stop-loss) policy with Medical Mutual covers claims in excess of$ll 0,000 per person per year. The claims liability of$313,976, reported in the self-insurance fund at December 31, 2022, is estimated by the third-party administrator and is based on the requirements of Governmental Accounting Standards Board Statement No. 30, which requires that a liability for unpaid claims costs, including estimates of costs relating to incurred but not reported claims, be reported. The estimate was not affected by incremental claims adjustments expenses and does not include other allocated or unallocated claim adjustment expenses. Changes in the fund's claims liability amount for the last two years follow: Balance at Current Claims Balance at Year Beginning of Year Year Claims Payment End of Year 2021 $271,169 $2,426,644 $2,478,677 $219,136 2022 219,136 2,386,089 2,291,249 313,976 Note 9—Interfund Transfers and Balances Interfund Transfers Interfund transfers for the year ended December 31, 2022, consisted of the following: Transfers To General Obligation General Other Fire Bond Municipal Road Governmental Transfers From Department Retirement Improvement Improvements Funds Totals General $421,000 $0 $4,146,568 $1,430,723 $1,470,000 $7,468,291 General Municipal Improvement 0 669,832 0 0 31,157 700,989 Buildings and Improvements 0 943,837 0 0 0 943,837 Other Governmental Funds 0 713,797 0 0 0 713,797 TotalAllFunds $421,000 $2,327,466 $4,146,568 $1,430,723 $1,501,157 $9,826,914 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. Transfers from the general fund to the fire department and community center funds were to fund their specific operations. Transfers from the general fund to the general municipal improvement, road improvements, and recreation facilities expansion funds were to fund their specific capital projects. To provide funds for loan payments, transfers totaling $31,157 were made to the issue II fund from the general municipal improvement fund. The general bond retirement fund is funded for debt payment obligations from the general municipal improvement, building and improvements, police station building, and recreation facilities expansion funds. - 52 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Interfund Balances The general fund has an interfund receivable balance of$2,579,898, the general municipal improvement capital projects fund had an interfund payable balance of$2,539,898, and other governmental funds had an interfund payable balance of$40,000. The purpose of these advances were to fund operations until revenues could cover the fund and to help cover debt obligations until revenues could cover the fund. Additionally, the general municipal improvement and road improvements major capital projects funds had interfund payable balances of $39,700 and $17,300, respectively, and the general fund had an interfund receivable balance of$57,000 due to the issuance of a manuscript bond. The manuscript bond represents a special assessment bond that was issued on August 13, 2008, at 5.05 percent. The manuscript bond was issued by the City and purchased by the general fund. The schedule of future payments is as follows: Brecksville Road Access Road Years Principal Interest Total 2023 $18,000 $2,878 $20,878 2024 19,000 1,970 20,970 2025 20,000 1,010 21,010 Total $57,000 $5,858 $62,858 Note 10—Capital Assets A summary of changes in capital assets during 2022 follows: Balance Balance Governmental Activities: 12/31/2021 Additions Deductions 12/31/2022 Capital Assets not being Depreciated/Amortized.• Land $7,300,238 $39,561 $0 $7,339,799 Construction in Progress 18,573,369 19,495,128 (10,181,958) 27,886,539 Total CapitalAssets not beingDepreciated/Amortized 25,873,607 19,534,689 (10,181,958) 35,226,338 Capital Assets being Depreciated/Amortized: Land Improvements 5,556,831 973,585 0 6,530,416 Buildings andImprovements 50,186,444 9,529,513 0 59,715,957 Machinery and Equipment 17,687,463 309,162 (10,800) 17,985,825 Furniture and Fixtures 447,078 0 0 447,078 Infrastructure: Roads 49,842,718 994,713 (217,080) 50,620,351 Sidewalks 3,597,083 0 0 3,597,083 Guardrails 623,128 57,992 (17,033) 664,087 Traffic Signals 2,320,884 0 0 2,320,884 Storm Sewers 14,508,599 127,589 0 14,636,188 Sanitary Sewers 16,739,009 0 0 16,739,009 Water Lines 226,460 0 0 226,460 Intangible Right to Use Lease-Equipment** 2,936 6,842 (2,936) 6,842 TotalCapitalAssetsbeingDepreciated/Amortized $161,738,633 $11,999,396 ($247,849) $173,490,180 (continued) - 53 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Balance Balance Governmental Activities(continued): 12/31/2021 Additions Deductions 12/31/2022 Less Accumulated Depreciation/Amortization: Land Improvements ($3,776,591) ($261,593) $0 ($4,038,184) Buildings and Improvements (17,129,883) (1,028,621) 0 (18,158,504) MachineryandEquipment (12,195,278) (991,382) 10,799 (13,175,861) Furniture and Fixtures (323,596) (11,743) 0 (335,339) Infrastructure: Roads (24,053,718) (864,870) 217,080 (24,701,508) Sidewalks (3,312,476) (14,608) 0 (3,327,084) Guardrails (262,789) (15,618) 17,033 (261,374) Traffic Signals (1,987,981) (107,643) 0 (2,095,624) Storm Sewers (3,418,781) (146,551) 0 (3,565,332) Sanitary Sewers (4,830,995) (169,081) 0 (5,000,076) Water Lines (159,907) (5,357) 0 (165,264) Intangible Right to Use Lease-Equipment** 0 (1,476) 0 (1,476) Total Accumulated Depreciation/Amortization (71,451,995) (3,618,543) * 244,912 (74,825,626) Total CapitalAssets beingDepreciated/Amortized,Net 90,286,638 8,380,853 (2,937) 98,664,554 GovernmentalActivitiesCapitalAssets,Net $116,160,245 $27,915,542 ($10,184,895) $133,890,892 *Depreciation/amortization expense was charged to governmental activities as follows: General Government: Legislative and Executive $439,865 Public Safety: Police 327,301 Fire 306,007 Public Health Services 201,434 Street Construction,Maintenance and Repair 1,191,269 Housing and Community Development 12,545 Basic Utility Services 678,576 Recreational Activities 461,546 Total Depreciation/Amortization Expense $3,618,543 ** Of the current year depreciation/amortization total of$3,618,543, $1,476 is presented as public safety police expense on the Statement of Activities related to the City's intangible asset of a vehicle, which is included as an Intangible Right to Use Lease. With the implementation of Governmental Accounting Standards Board Statement No. 87, Leases, a lease meeting the criteria of this statement requires the lessee to recognize the lease liability and an intangible right to use asset. Note 11 —Assets Held for Resale Assets held for resale represent various parcels within the City. One parcel was received through the land reutilization program, which will be sold for future development/ownership. At December 31, 2022, this one parcel was held for resale with a value of$137,100. - 54 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 12 —Defined Benefit Pension Plans The Statewide retirement systems provide both pension benefits and other postemployment benefits (OPEB). Net Pension Liability(Asset)/Net OPEB Liability(Asset) The net pension liability (asset) and the net OPEB liability (asset) reported on the statement of net position represent liabilities to employees for pensions and OPEB, respectively. Pensions/OPEB are a component of exchange transactions —between an employer and its employees — of salaries and benefits for employee services. Pensions/OPEB are provided to an employee — on a deferred-payment basis — as part of the total compensation package offered by an employer for employee services each financial period. The obligation to sacrifice resources for pensions is a present obligation because it was created as a result of employment exchanges that already have occurred. The net pension/OPEB liability (asset) represent the City's proportionate share of each pension/OPEB plan's collective actuarial present value of projected benefit payments attributable to past periods of service, net of each pension/OPEB plan's fiduciary net position. The net pension/OPEB liability (asset) calculations are dependent on critical long-term variables, including estimated average life expectancies, earnings on investments, cost of living adjustments and others. While these estimates use the best information available,unknowable future events require adjusting these estimates annually. The Ohio Revised Code limits the City's obligation for this liability to annually required payments. The City cannot control benefit terms or the manner in which pensions are financed; however, the City does receive the benefit of employees' services in exchange for compensation including pension and OPEB. GASB 68/75 assumes the liability is solely the obligation of the employer, because (1) they benefit from employee services; and (2) State statute requires funding to come from these employers. All pension contributions to date have come solely from these employers (which also includes pension costs paid in the form of withholdings from employees). The retirement systems may allocate a portion of the employer contributions to provide for these OPEB benefits. In addition, health care plan enrollees pay a portion of the health care costs in the form of a monthly premium. State statute requires the retirement systems to amortize unfunded pension liabilities within 30 years. If the pension amortization period exceeds 30 years, each retirement system's board must propose corrective action to the State legislature. Any resulting legislative change to benefits or funding could significantly affect the net pension/OPEB liability (asset). Resulting adjustments to the net pension/OPEB liability (asset) would be effective when the changes are legally enforceable. The Ohio Revised Code permits but does not require the retirement systems to provide healthcare to eligible benefit recipients. The proportionate share of each plan's unfunded benefits is presented as a net pension/OPEB asset or a long-term net pension/OPEB liability on the accrual basis of accounting. Any liability for the contractually required pension/OPEB contribution outstanding at the end of the year is included in intergoveNnmental payable. The remainder of this note includes the required pension disclosures. See Note 13 for the required OPEB disclosures. Plan Description—Ohio Public Employees Retirement System (OPERS) City employees, other than full-time police and firefighters, participate in the Ohio Public Employees Retirement System (OPERS). OPERS is a cost-sharing, multiple employer public employee retirement system which administers three separate pension plans. The traditional pension plan is a cost-sharing, multiple-employer defined benefit pension plan. The combined plan is a combination cost-sharing, - 55 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 multiple-employer defined benefit/defined contribution pension plan. The member-directed plan is a defined contribution plan. Participating employers are divided into state, local, law enfarcement and public safety divisions. While members in the state and local divisions may participate in all three plans, law enforcement and public safety divisions exist only within the traditional plan. OPERS provides retirement, disability, survivor and death benefits, and annual cost of living adjustments to members of the traditional and combined plans. Authority to establish and amend benefits is provided by Chapter 145 of the Ohio Revised Code. OPERS issues a stand-alone financial report that includes financial statements, required supplementary information and detailed information about OPERS' fiduciary net position that may be obtained by visiting https://www.opers.org/financial/reports.shtml, by writing to the Ohio Public Employees Retirement System, 277 East Town Street, Columbus, Ohio 43215- 4642, or by calling 800-222-7377. Senate Bill (SB) 343 was enacted into law with an effective date of January 7, 2013. In the legislation, members in the traditional and combined plans were categorized into three groups with varying provisions of the law applicable to each group. The following table provides age and service requirements for retirement and the retirement formula applied to final average salary (FAS) for the three member groups under the traditional and combined plans as per the reduced benefits adopted by SB 343 (see OPERS Annual Comprehensive Financial Report referenced for additional information, including requirements for reduced and unreduced benefits): Group A Group B Group C Eligible to retire prior to 20 years of service credit priar to Members not in other Groups January 7,2013 ar five years January 7,2013 or eligible to retire and members hired on or after after January 7,2013 ten years after January 7,2013 January 7,2013 State and Local State and Local State and Local Age and Service Requirements: Age and Service Requirements: Age and Service Requirements: Age 60 with 60 months of service credit Age 60 with 60 months of service credit Age 57 with 25 years of service credit or Age 55 with 25 years of service credit or Age 55 with 25 years of service credit ar Age 62 with 5 years of service credit Traditional Plan Formula: Traditional Plan Formula: Traditional Plan Formula: 2.2%of FAS multiplied by years of 2.2%of FAS multiplied by years of 2.2%of FAS multiplied by years of service for the first 30 years and 2.5% service for the fu�st 30 years and 2.5% service for the first 35 years and 2.5% for service years in excess of 30 for service years in excess of 30 for service years in excess of 35 Combined Plan Formula: Combined Plan Formula: Combined Plan Formula: 1%of FAS multiplied by years of 1%of FAS multiplied by years of 1%of FAS multiplied by years of service for the first 30 years and 1.25% service for the first 30 years and L25% service for the first 35 years and 1.25% for service years in excess of 30 for service years in excess of 30 for service years in excess of 35 Final Average Salary (FAS) represents the average of the three highest years of earnings over a member's career for Groups A and B. Group C is based on the average of the five highest years of earnings over a member's career. Members who retire before meeting the age and years of service credit requirement for unreduced benefits receive a percentage reduction in the benefit amount. The amount of a member's pension benefit vests upon receipt of the initial benefit payment. When a traditional plan benefit recipient has received benefits for 12 months, the member is eligible for an annual cost of living adjustment (COLA). This COLA is calculated on the base retirement benefit at the date of retirement and is not compounded. Members retiring under the combined plan receive a cost - 56 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 of living adjustment on the defined benefit portion of their pension benefit. For those who retired prior to January 7, 2013, the cost of living adjustment is 3 percent. For those retiring on or after January 7, 2013, beginning in calendar year 2019, the adjustment is based on the average percentage increase in the Consumer Price Index, capped at 3 percent. Defined contribution plan benefits are established in the plan documents, which may be amended by the Board. Member-directed plan and combined plan members who have met the retirement eligibility requirements may apply for retirement benefits. The amount available for defined contribution benefits in the combined plan consists of the member's contributions plus or minus the investment gains or losses resulting from the member's investment selections. Combined plan members wishing to receive benefits must meet the requirements for both the defined benefit and defined contribution plans. Member-directed participants must have attained the age of 55, have money on deposit in the defined contribution plan and have terminated public service to apply for retirement benefits. The amount available for defined contribution benefits in the member-directed plan consists of the members' contributions, vested employer contributions and investment gains or losses resulting from the members' investment selections. Employer contributions and associated investment earnings vest over a five-year period, at a rate of 20 percent each year. At retirement, members may select one of several distribution options for payment of the vested balance in their individual OPERS accounts. Options include the annuitization of the benefit (which includes joint and survivor options and will continue to be administered by OPERS),partiallump- sum payments (subject to limitations), a rollover of the vested account balance to another financial institution, receipt of entire account balance, net of taxes withheld, or a combination of these options. When members choose to annuitize their defined contribution benefit, the annuitized portion of the benefit is reclassified to a defined benefit. Effective January 1, 2022,the combined plan is no longer available for member selection. Funding Policy - The Ohio Revised Code (ORC) provides statutory authority for member and employer contributions as follows: State and Local 2022 Statutory Maximum Contribution Rates Employer 14.0 % Employee* 10.0 % 2022 Actual Contribution Rates Employer: Pension** 14.0 % Post-employment Health Care Benefits** 0.0 Total Employer 14.0 % Employee 10.0 % * Member contributions within the combined plan are not used to fund the defined benefit retirement allowance. ** These pension and employer health care rates are for the traditional and combined plans. The employer contributions rate for the member-directed plan is allocated 4 percent for health care with the remainder going to pension. Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. - 57 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 For 2022, the City's contractually required contribution was $1,026,064 for the traditional plan, $16,777 for the combined plan and$14,531 for the member-directed plan. Of these amounts, $41,628 is reported as an intergovernmental payable for the traditional plan, $682 far the combined plan, and $589 for the member-directed plan. Plan Description—Ohio Police& Fire Pension Fund(OP&F) City full-time police and firefighters participate in Ohio Police and Fire Pension Fund (OP&F), a cost- sharing, multiple-employer defined benefit pension plan administered by OP&F. OP&F provides retirement and disability pension benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Benefit provisions are established by the Ohio State Legislature and are codified in Chapter 742 of the Ohio Revised Code. OP&F issues a publicly available financial report that includes financial information and required supplementary information and detailed information about OP&F fiduciary net position. The report that may be obtained by visiting the OP&F website at www.op- £org or by writing to the Ohio Police and Fire Pension Fund, 140 East Town Street, Columbus, Ohio 43215-5164. Upon attaining a qualifying age with suf�cient years of service, a member of OP&F inay retire and receive a lifetime monthly pension. OP&F offers four types of service retirement: normal, service commuted, age/service commuted and actuarially reduced. Each type has different eligibility guidelines and is calculated using the member's average annual salary. The following discussion of the pension formula relates to normal service retirement. For members hired after July 1, 2013, the minimum retirement age is 52 for normal service retirement with at least 25 years of service credit. For members hired on or before after July 1, 2013, the minimum retirement age is 48 for normal service retirement with at least 25 years of service credit. The annual pension benefit for normal service retirement is equal to a percentage of the allowable average annual salary. The percentage equals 2.5 percent for each of the first 20 years of service credit, 2.0 percent for each of the next five years of service credit and 1.5 percent for each year of service credit in excess of 25 years. The maximum pension of 72 percent of the allowable average annual salary is paid after 33 years of service credit (see OP&F Annual Comprehensive Financial Report referenced for additional information, including requirements for Deferred Retirement Option Plan provisions and reduced and unreduced benefits). Under normal service retirement, retired members who are at least 55 years old and have been receiving OP&F benefits for at least one year may be eligible for a cost-of-living allowance adjustment. The age 55 provision for receiving a COLA does not apply to those who are receiving a permanent and total disability benefit, surviving beneficiaries under optional plans, and statutory survivors. Members participating in the DROP program have separate eligibility requirements related to COLA. The COLA amount far members who have 15 ar more years of service credit as of July 1, 2013, and members who are receiving a pension benefit that became effective before July 1, 2013, will be equal to 3.0 percent of the member's base pension benefit. The COLA amount for members who have less than 15 years of service credit as of July 1, 2013, and members whose pension benefit became effective on ar after July l, 2013,will be equal to a percentage of the member's base pension benefit where the percentage is the lesser of 3.0 percent or the percentage increase in the consumer price index, if any, over the twelve-month period that ends on the thirtieth day of September of the immediately preceding year,rounded to the nearest one-tenth of one percent. - 58 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Members who retired prior to July 24, 1986, or their surviving beneficiaries under optional plans are entitled to cost-of-living allowance increases. The annual increase is paid on July lst of each year. The annual COLA increase is $360 under a Single Life Annuity Plan with proportional reductions for optional payment plans. Funding Policy— The Ohio Revised Code (ORC) provides statutory authority for member and employer contributions as follows: Police Firefighters 2022 Statutory Maximum Contribution Rates Employer 19.50 % 24.00 % Employee 12.25 % 12.25 % 2022 Actual Contribution Rates Employer: Pension 19.00 % 23.50 % Post-employment Health Care Benefits 0.50 0.50 Total Employer 19.50 % 24.00 % Employee 12.25 % 12.25 % Employer contribution rates are expressed as a percentage of covered payroll. The City's contractually required contribution to OP&F was $886,569 for 2022. Of this amount, $103,764 is reported as an intergovernmental payable. Pension Liabilities (Assets), Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions The net pension liability (asset)for OPERS was measured as of December 31, 2021, and the total pension liability used to calculate the net pension liability (asset) was determined by an actuarial valuation as of that date. OP&F's total pension liability was measured as of December 31, 2021, and was determined by rolling forward the total pension liability as of January 1, 2021, to December 31, 2021. The City's proportion of the net pension liability (asset) was based on the City's share of contributions to the pension plan relative to the contributions of all participating entities. Following is information related to the proportionate share and pension expense of the City's defined benefit pension plans: OPERS OPERS Traditional Combined Plan Plan OP&F Total Proportion of the Net Pension Liability/Asset Current Measurement Date 0.04781200% 0.02516400% 0.15722790% Prior Measurement Date 0.04596800% 0.02713500% 0.16189770% Change in Propartionate Share 0.00184400% -0.00197100% -0.00466980% Proportionate Share of the: Net Pension Liability $4,159,836 $0 $9,822,691 $13,982,527 Net Pension Asset 0 (99,147) 0 (99,147) Pension Expense ($756,782) ($2,835) $552,633 ($206,984) - 59 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 2022 pension expense for the member-directed defined contribution plan was $14,531. The aggregate pension expense far all pension plans was ($192,453)for 2022. At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to defined benefit pensions from the following sources: OPERS OPERS Traditional Combined Plan Plan OP&F Total Deferred Outflows of Resources Differences between expected and actual experience $212,062 $615 $283,229 $495,906 Changes of assumprions 520,183 4,982 1,795,166 2,320,331 Changes in proportion and differences between City contributions and proporrionate share of contributions 228,179 10,716 92,645 331,540 City contributions subsequent to the measurement date 1,026,064 16,777 886,569 1,929,410 Total Deferred Outflows ofResources $1,986,488 $33,090 $3,057,609 $5,077,187 Deferred Inflows of Resources Differences between expected and actual experience $91,236 $11,089 $510,645 $612,970 Net difference between projected and actual earnings on pension plan investments 4,947,976 21,256 2,575,358 7,544,590 Changes in proportion and differences between City contributions and proporrionate sbare of contributions 39,268 3,649 590,468 633,385 TotalDeferredlnflowsofResources $5,078,480 $35,994 $3,676,471 $8,790,945 $1,929,410 reported as deferred outflows of resources related to pension resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability or increase to the net pension asset in 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pension will be recognized in pension expense as follows: OPERS OPERS Traditional Combined Plan Plan OP&F Total Year Ending December 31: zo23 ($s3o,96s� ��s,6�9� �$io4,9�s� �$641,6z2� 2024 (1,636,510) (8,174) (840,385) (2,485,069) 2025 (1,163,469) (5,071) (418,546) (1,587,086) 2026 (787,109) (3,534) (301,Sll) (1,092,154) 2027 0 494 159,986 160,480 Thereafter 0 2,283 0 2,283 Total ($4,118,056) ($19,681) ($1,505,431) ($5,643,168) - 60 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Actuarial Assumptions- OPERS Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and cost trends. Actuarially determined amounts are subject to continual review or modification as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of benefits provided at the time of each valuation. The total pension liability was determined by an actuarial valuation as of December 31, 2021, using the following key actuarial assumptions and methods applied to all periods included in the measurement in accordance with the requirements of GASB 67. In 2021, the Board's actuarial consultants conducted an experience study for the period 2016 through 2020, comparing assumptions to actual results. The experience study incorporates both a historical review and forward-looking projections to determine the appropriate set of assumptions to keep the plan on a path toward full funding. Information from this study led to changes in both demographic and economic assumptions, with the most notable being a reduction in the actuarially assumed rate of return from 7.2 percent down to 6.9 percent, for the defined benefit investments. Key actuarial assumptions and methods used in the latest actuarial valuation, prepared as of December 31, 2021, reflecting experience study results, are presented as follows: OPERS Traditional Plan OPERS Combined Plan Wage Inflation 2.75 percent 2.75 percent Future Salary Increases, 2.75 to 10.75 percent 2.75 to 825 percent including inflation including wage inflation including wage inflation COLA or Ad Hoc COLA: Pre-January 7,2013 Retirees 3.0 percent,simple 3.0 percent,simple Post-January 7,2013 Retirees 3.0 percent,simple through 2022, 3.0 percent,simple through 2022, then 2.05 percent,simple then 2.05 percent,sirnple Investment Rate of Return 6.9 percent 6.9 percent Actuarial Cost Method Individual Entry Age Individual Entry Age Key actuarial assumptions and methods used in the prior actuarial valuation,prepared as of December 31, 2020, are presented as follows: OPERS Traditional Plan OPERS Combined Plan Wage Inflation 3.25 percent 3.25 percent Future Salary Increases, 3.25 to 10.75 percent 3.25 to 8.25 percent including inflation including wage inflation including wage inflation COLA or Ad Hoc COLA: Pre-January 7,2013 Retirees 3.Opercent,simple 3.Opercent,simple Post-January 7,2013 Retirees 0.5 percent,sirnple through 2021, 0.5 percent,sirnple through 2021, then 2.15 percent,simple then 2.15 percent,simple Investment Rate of Return 72 percent 72 percent Actuarial Cost Method Individual Entry Age Individual Entry Age - 61 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 For 2021, pre-retirement mortality rates are based on 130 percent of the Pub-2010 General Employee Mortality tables (males and females) for State and Local Government divisions and 170 percent of the Pub-2010 Safety Employee Mortality tables (males and females) for the Public Safety and Law Enforcement divisions. Post-retirement mortality rates are based on 15 percent of the PubG-2010 Retiree Mortality Tables (males and females) for all divisions. Post-retirement mortality rates far disabled retirees are based on the PubNS-2010 Disabled Retiree Mortality Tables (males and females) for all divisions. For all the previously described tables, the base year is 2010 and mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scales (males and females)to all these tables. For 2020, pre-retirement mortality rates are based on the RP-2014 Employees mortality table for males and females, adjusted far mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010, respectively. Post-retirement mortality rates are based on the RP-2014 Healthy Annuitant mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010, respectively. Post-retirement mortality rates for disabled retirees are based on the RP-2014 Disabled mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010, respectively. Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to all the above- described tables. The most recent experience study was completed for the five-year period ended December 31, 2020. During 2021, OPERS managed investments in three investment portfolios: the Defined Benefit portfolio, the Health Care portfolio, and the Defined Contribution portfolio. The Defined Benefit portfolio contains the investment assets for the Traditional Pension Plan, the defined benefit component of the Combined Plan and the annuitized accounts of the Member-Directed Plan. Within the Defined Benefit portfolio contributions into the plans are all recorded at the same time, and benefit payments all occur on the first of the month. Accordingly, the money-weighted rate of return is considered to be the same for all plans within the portfolio. The annual money-weighted rate of return expressing investment performance, net of investment expenses and adjusted for the changing amounts actually invested, for the Defined Benefit portfolio was 15.3 percent for 2021. The allocation of investment assets with the Defined Benefit portfolio is approved by the Board of Trustees as outlined in the annual investment plan. Plan assets are managed on a total return basis with a long-term objective of achieving and maintaining a fully funded status for the benefits provided through the defined benefit pension plans. The long-term expected rate of return on defined benefit investment assets was determined using a building-block method in which best-estimate ranges of expected future real rates of return are developed for each major asset class. These ranges are combined to produce the long-term expected real rate of return by weighting the expected future real rates of return by the target asset allocation percentage, adjusted for inflation. Best estimates of geometric rates of return were provided by the Board's investment consultant. For each major class that is included in the Defined Benefit portfolio's target asset allocation as of December 31, 2021, these best estimates are summarized in the following table: - 62 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Weighted Average Long-Term F�cpected Target Real Rate of Return Asset Class Allocation (Geometric) Fixed Income 24.00% 1.03% Domestic Equities 21.00 3.78 Real Fstate 11.00 3.66 Private Equity 12.00 7.43 International Equities 23.00 4.88 Risk Parity 5.00 2.92 Other investments 4.00 2.85 Total 100.00% 4.21% Discount Rate The discount rate used to measure the total pension liability for the current year was 6.9 percent for the traditional plan and the combined plan. The discount rate for the prior year was 7.2 percent. The projection of cash flows used to determine the discount rate assumed that contributions from plan members and those of the contributing employers are made at the contractually required rates, as actuarially determined. Based on those assumptions, the pension plan's fiduciary net position was projected to be available to make all projected future benefits payments of current plan members. Therefore,the long- term expected rate of return on pension plan investments far the traditional pension plan, combined plan and member-directed plan was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the City's PYopovtionate Share of the Net Pension Liability (Asset) to Changes in the Discount Rate The following table presents the City's proportionate share of the net pension liability (asset) calculated using the current period discount rate assumption of 6.9 percent, as well as what the City's proportionate share of the net pension liability (asset) would be if it were calculated using a discount rate that is one-percentage-point lower(5.9 percent) ar one-percentage-point higher(7.9 percent) than the current rate: Current 1%Decrease Discount Rate 1%Increase (5.90%) (6.90°/a) (7.90%) City's proportionate share of the net pension liability(asset): OPERS Traditional Plan $10,967,595 $4,159,836 ($1,505,122) OPERS CombinedPlan (73,982) (99,147) (118,774) Actuarial Assumptions—OP&F OP&F's total pension liability as of December 31, 2021, is based on the results of an actuarial valuation date of January 1, 2021, and rolled-forward using generally accepted actuarial procedures. The total pension liability is determined by OP&F's actuaries in accordance with GASB Statement No. 67, as part of their annual valuation. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment mortality, salary increases, disabilities, retirements and employment terminations. Actuarially determined amounts are subject to continual review and potential modifications, as actual results are compared with past expectations and new estimates are made about the future. Assumptions considered are: withdrawal rates, disability retirement, service retirement, DROP elections, mortality, percent married and forms of the payment, DROP interest rate, CPI-based COLA, investment returns, salary increases and payroll growth. - 63 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, prepared as of January 1,2021, are presented as follows. Valuation Date January 1, 2021,with actuarial liabilities rolled forward to December 31, 2021 Actuarial Cost Method Entry Age Normal Investment Rate of Return 7.5 percent Projected Salary Increases 3.75 percent to 10.5 percent Payroll Growth 325 percent per annum, compounded annually, consistingof Inflation rate of 2.75 percent plus productivity increase rate of 0.5 p ercent Cost of LivingAdjustments 2.2 percent simple per year In February 2022, the OP&F Board adopted a change in the investment rate of return, changing it from 8 percent for the 2020 measurement period to 7.5 percent for the 2021 measurement period. Mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006, adjusted accarding to the rates in the following table, and projected with the Buck Modified 2016 Improvement Scale. Rates for surviving beneficiaries are adjusted by 120 percent. Age Police Fire 67 or less 77 % 68 % 68-77 105 87 78 and up 115 120 Mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006, adjusted according to the rates in the following table, and projected with the Buck Modified 2016 Improvement Scale. Age Police Fire 59 or less 35 % 35 % 60-69 60 45 70-79 75 70 80 and up 100 90 The most recent experience study was completed for the five-year period ended December 31, 2016. The long-term expected rate of return on pension plan investments was determined using a building-block approach and assumes a time horizon, as defined in the Statement of Investment Policy. A forecasted rate of inflation serves as the baseline for the return expected. Various real return premiums over the baseline inflation rate have been established for each asset class. The long-term expected nominal rate of return has been determined by calculating a weighted averaged of the expected real return premiums for each asset class, adding the projected inflation rate and adding the expected return from rebalancing uncorrelated asset classes. Best estimates of the long-term expected geometric real rates of return for each major asset class included in OP&F's target asset allocation as of December 31, 2021, are summarized as follows: - 64 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Target Long-TermEapected Asset Class Allocation Real Rate ofReturn Cash and Cash Equivalents 0.00 % 0.00 % Domestic Equity 21.00 3.60 Non-US Equity 14.00 4.40 Private Markets 8.00 6.80 Core Fixed Income* 23.00 1.10 High Yield Fixed Income 7.00 3.00 Private Credit 5.00 4.50 U.S.Inflation Linked Bonds* 17.00 0.80 MidstreamEnergy Infrastructure 5.00 5.00 Real Assets 8.00 5.90 Go ld 5.00 2.40 Private Real Estate 12.00 4.80 Total 125.00 % Note: Assumptions are geometric. * levered 2x OP&F's Board of Trustees has incorporated the risk parity concept into OP&F's asset liability valuation with the goal of reducing equity risk exposure, which reduces overall Total Portfolio risk without sacrificing return, and creating a more risk-balanced portfolio based on their relationship between asset classes and economic environments. From the notional portfolio perspective above, the Total Portfolio may be levered up to 1.25 times due to the application of leverage in certain fixed income asset classes. Discount Rate For 2021, the total pension liability was calculated using the discount rate of 7.50 percent. The projection of cash flows used to determine the discount rate assumed the contributions from employers and from the members would be computed based on contribution requirements as stipulated by State statute. Projected inflows from investment earning were calculated using the longer-term assumed investment rate of return of 7.50 percent. Based on those assumptions, the plan's fiduciary net position was projected to be available to make all future benefit payments of current plan members. Therefore, a long-term expected rate of return on pension plan investments was applied to all periods of projected benefits to determine the total pension liability. Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate Net pension liability is sensitive to changes in the discount rate, and to illustrate the potential impact, the following table presents the net pension liability calculated using the discount rate of 7.50 percent, as well as what the net pension liability would be if it were calculated using a discount rate that is one percentage point lower (6.50 percent), or one percentage point higher (8.50 percent) than the current rate. Current 1%Decrease Discount Rate 1%Increase (6.50%) (7.50%) (8.50%) City's proportionate share of the net pension liability $14,566,912 $9,822,691 $5,871,924 - 65 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 13 —Defined Benefit OPEB Plans See Note 12 for a description of the net OPEB liability(asset). Plan Description—Ohio Public Employees Retirement System (OPERS) The Ohio Public Employees Retirement System (OPERS) administers three separate pension plans: the traditional pension plan, a cost-sharing, multiple-employer defined benefit pension plan; the member- directed plan, a defined contribution plan; and the combined plan, a cost-sharing, multiple-employer defined benefit pension plan that has elements of both a defined benefit and defined contribution plan. OPERS maintains a cost-sharing, multiple-employer defined benefit post-employment health care trust, which funds multiple health care plans including medical coverage, prescription drug coverage and deposits to a Health Reimbursement Arrangement (HRA) to qualifying benefit recipients of both the traditional pension and the combined plans. Currently, Medicare-eligible retirees are able to select medical and prescription drug plans from a range of options and may elect optional vision and dental plans. Retirees and eligible dependents enrolled in Medicare Parts A and B have the option to enroll in a Medicare supplemental plan with the assistance of the OPERS Medicare Connector. The OPERS Medicare Connector is a relationship with a vendor selected by OPERS to assist retirees, spouses and dependents with selecting a medical and pharmacy plan. Monthly allowances, based on years of service and the age at which the retiree first enrolled in OPERS coverage, are deposited into an HRA. For non- Medicare retirees and eligible dependents, OPERS sponsors medical and prescription coverage through a professionally managed self-insured plan. An allowance to offset a portion of the monthly premium is offered to retirees and eligible dependents. The allowance is based on the retiree's years of service and age when they first enrolled in OPERS coverage. OPERS provides a monthly allowance for health care coverage for eligible retirees and their eligible dependents. The base allowance is determined by OPERS. For those retiring on or after January 1, 2015, the allowance has been determined by applying a percentage to the base allowance. The percentage applied is based on years of qualifying service credit and age when the retiree first enrolled in OPERS health care. Monthly allowances range between 51 percent and 90 percent of the base allowance. Those who retired prior to January 1, 2015,will have an allowance of at least 75 percent of the base allowance. The heath care trust is also used to fund health care for member-directed plan participants, in the form of a Retiree Medical Account (RMA). At retirement or separation, member directed plan participants may be eligible for reimbursement of qualified medical expenses from their vested RMA balance. Effective January 1, 2022, OPERS discontinued the group plans currently offered to non-Medicare retirees and re-employed retirees. Instead, eligible non-Medicare retirees will select an individual medical plan. OPERS will provide a subsidy or allowance via an HRA allowance to those retirees who meet health care eligibility requirements. Retirees will be able to seek reimbursement for plan premiums and other qualified medical expenses. In order to qualify for postemployment health care coverage, age and service retirees under the traditional pension and combined plans must have twenty or more years of qualifying Ohio service credit with a minimum age of 60. Members in Group A are eligible for coverage at any age with 30 or more years of qualifying service. Members in Group B are eligible at any age with 32 years of qualifying service, or at age 52 with 31 years of qualifying service. Members in Group C are eligible for coverage with 32 years of qualifying service and a minimum age of 55. Current retirees eligible (or who became eligible prior to January 1, 2022) to participate in the OPERS health care program will continue to be eligible after January 1, 2022. Eligibility requirements change for those retiring after January 1, 2022, with differing - 66 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 eligibility requirements for Medicare retirees and non-Medicare retirees. The health care coverage provided by OPERS meets the definition of an Other Post Employment Benefit (OPEB) as described in GASB Statement 75. See OPERS' Annual Comprehensive Financial Report referenced below for additional information. The Ohio Revised Code permits, but does not require, OPERS to provide health care to its eligible benefit recipients. Authority to establish and amend health care coverage is provided to the Board in Chapter 145 of the Ohio Revised Code. Disclosures for the health care plan are presented separately in the OPERS �nancial report. Interested parties may obtain a copy by visiting https://www.opers.org/financial/reports.shtml, by writing to OPERS, 277 East Town Street, Columbus, Ohio 43215-4642, or by calling (614) 222-5601 or 800-222- 7377. Funding Policy — The Ohio Revised Code provides the statutory autharity allowing public employers to fund postemployment health care through their contributions to OPERS. When funding is approved by OPERS Board of Trustees, a portion of each employer's contribution to OPERS is set aside to fund OPERS health care plans. Beginning in 2018, OPERS no longer allocated a portion of its employer contributions to health care for the traditional plan and the combined plan. Employer contribution rates are expressed as a percentage of the earnable salary of active members. In 2022, state and local employers contributed at a rate of 14.0 percent of earnable salary and public safety and law enforcement employers contributed at 18.1 percent. These are the maximum employer contribution rates permitted by the Ohio Revised Code. Active member contributions do not fund health care. Each year, the OPERS Board determines the portion of the employer contribution rate that will be set aside to fund health care plans. For 2022, OPERS did not allocate any employer contribution to health care for members in the Traditional Pension Plan and Combined Plan. The OPERS Board is also authorized to establish rules for the retiree or their surviving beneficiaries to pay a portion of the health care provided. Payment amounts vary depending on the number of covered dependents and the coverage selected. The employer contribution as a percentage of covered payroll deposited into the RMA for participants in the member-directed plan for 2022 was 4.0 percent. Employer contribution rates are actuarially determined and are expressed as a percentage of covered payroll. The City's contractually required contribution was $5,812 for 2022. Of this amount, $235 is reported as an intergovernmental payable. Plan Description—Ohio Police& Fire Pension Fund(OP&F) The City contributes to the Ohio Police and Fire Pension Fund (OP&F) sponsored healthcare program, a cost-sharing, multiple-employer defined post-employment health care plan administered by a third-party provider. This program is not guaranteed and is subject to change at any time upon action of the Board of Trustees. On January 1, 2019, OP&F implemented a new model for health care. Under this new model, OP&F provides eligible retirees with a fixed stipend earmarked to pay for health care and Medicare Part B reimbursements. - 67 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 OP&F contracted with a vendor who assists eligible retirees in choosing health care plans that are available where they live (both Medicare-eligible and pre-65 populations). A stipend funded by OP&F is available to these members through a Health Reimbursement Arrangement and can be used to reimburse retirees for qualified health care expenses. Regardless of a benefit recipient's participation in the health care program, OP&F is required by law to pay eligible recipients of a service pension, disability benefit and spousal survivor benefit for their Medicare Part B insurance premium, up to the statutory maximum provided the benefit recipient is not eligible to receive reimbursement from any other source. Once OP&F receives the necessary documentation, a monthly reimbursement is included as part of the recipient's next bene�t payment. The stipend provided by OP&F meets the defmition of an Other Post Employment Benefit (OPEB) as described in Governmental Accounting Standards Board(GASB) Statement No. 75. OP&F inaintains funds for health care in two separate accounts: one account for health care benefits and one account for Medicare Part B reimbursements. A separate health care trust accrual account is maintained for health care benefits under IRS Code Section 115 trust. IRS Code Section 401(h) account is maintained for Medicare Part B reimbursements. The Ohio Revised Code allows, but does not mandate, OP&F to provide OPEB benefits. Authority for the OP&F Board of Trustees to provide health care coverage to eligible participants and to establish and amend benefits is codified in Chapter 742 of the Ohio Revised Code. OP&F issues a publicly available financial report that includes financial information and required supplementary information for the plan. The report may be obtained by visiting the OP&F website at www.op-£org or by writing to the Ohio Police and Fire Pension Fund, 140 East Town Street, Columbus, Ohio 43215-5164. Funding Policy — The Ohio Revised Code provides for contribution requirements of the participating employers and of plan members to the OP&F defined benefit pension plan. Participating employers are required to contribute to the pension plan at rates expressed as percentages of the payroll of active pension plan members, currently 19.5 percent and 24 percent of covered payroll for police and fire employer units, respectively. The Ohio Revised Code states that the employer contribution may not exceed 19.5 percent of covered payroll for police employer units and 24 percent of covered payroll for fire employer units. Active members do not make contributions to the OPEB Plan. The Board of Trustees is authorized to allocate a portion of the total employer contributions for retiree health care benefits. For 2022, the portion of employer contributions allocated to health care was 0.5 percent of covered payrolL The amount of employer contributions allocated to the health care plan each year is subject to the Trustees' primary responsibility to ensure that pension benefits are adequately funded. The OP&F Board of Trustees is also authorized to establish requirements for contributions to the health care plan by retirees and their eligible dependents or their surviving beneficiaries. Payment amounts vary depending on the number of covered dependents and the coverage selected. The City's contractually required contribution to OP&F was $21,475 for 2022. Of this amount, $2,518 is reported as an intergovernmental payable. - 68 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 OPEB Liabilities (Assets), OPEB Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to OPEB The net OPEB liability (asset) and total OPEB liability for OPERS were determined by an actuarial valuation as of December 31, 2020, rolled forward to the measurement date of December 31, 2021, by incorporating the expected value of health care cost accruals, the actual health care payment, and interest accruals during the year. OP&F's total OPEB liability was measured as of December 31, 2021, and was determined by rolling forward the total OPEB liability as of January 1, 2021, to December 31, 2021. The Ciry's proportion of the net OPEB liabiliry (asset) was based on the City's share of contributions to the retirement plan relative to the contributions of all participating entities. Following is information related to the proportionate share and OPEB expense: OPERS OP&F Total Proportion of the Net OPEB Liabiliry/Asset: Current Measurement Date 0.04616100% 0.15722790% Prior Measurement Date 0.04450100°/o 0.16189770% Change in Proportionate Share 0.00166000% -0.00466980% Proportionate Share of the: Net OPEB Liabiliry $0 $1,723,354 $1,723,354 Net OPEB Asset (1,445,833) 0 (1,445,833) OPEB Expense ($1,363,025) $172,917 ($1,190,108) At December 31, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: OPERS OP&F Total Deferred Outflows of Resources Differences between eXpected and actual experience $0 $78,397 $78,397 Changes of assumptions 0 762,809 762,809 Changes in proportion and differences between City contributions and proportionate share of contributions 27,929 136,135 164,064 City contributions subsequent to the measurement date 5,812 21,475 27,287 Total Deferred Outflows of Resources $33,741 $998,816 $1,032,557 Deferred Inflows of Resources Differences between expected and actual experience $219,311 $227,765 $447,076 Changes of assumptions 585,257 200,157 785,414 Net difference between proj ected and actual earnings on OPEB plan investments 689,271 155,676 844,947 Changes in proportion and differences between City contributions and proportionate share of contributions 35,585 76,153 111,738 TotalDeferredlnflowsofResources $1,529,424 $659,751 $2,189,175 - 69 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 $27,287 reported as deferred outflows of resources related to OPEB resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB liability or an increase in the net OPEB asset in 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized in OPEB expense as follows: OPERS OP&F Total Year Ending December 31: 2023 ($941,123) $102,915 ($838,208) 2024 (310,779) 79,803 (230,976) zo2s �lso,6oz� si,og6 �69,s16� zoz6 �9s,991� 3,463 �9s,szg� 2027 0 26,326 26,326 Thereafter 0 23,997 23,997 Totai ($i,soi,49s� $3i�,s90 (�i,ig3,9os� Actuarial Assumptions- OPERS Actuarial valuations of an ongoing plan involve estimates of the values of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and cost trends. Actuarially determined amounts are subject to continual review or modification as actual results are compared with past expectations and new estimates are made about the future. Projections of health care costs for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of coverage provided at the time of each valuation and the historical pattern of sharing of costs between OPERS and plan members. In 2021, the Board's actuarial consultants conducted an experience study for the period 2016 through 2020, comparing historical assumptions to actual results. The experience study incorporates both a historical review and forward-looking projections to determine the appropriate set of assumptions to keep the plan on a path toward full funding. Information from this study led to changes in both demographic and economic assumptions. The actuarial valuation used for 2021 compared to those used for 2020 are as follows: December 31,2021 December 31,2020 Wage Inflarion 2.75 percent 325 percent Projected Salary Increases, 2.75 to 10.75 percent 3.25 to 10.75 percent including wage inflation including wage inflation Single Discount Rate 6.00 percent 6.00 percent Investment Rate of Return 6.00 percent 6.00 percent Municipal Bond Rate 1.84 percent 2.00 percent Health Care Cost Trend Rate 5.5 percent,initial 8.5 percent,initial 3.50 percent,ultimate in 2034 3.50 percent,ultimate in 2035 Actuarial Cost Method Individual Entry Age Individual Entry Age - 70 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 For 2021, pre-retirement mortality rates are based on 130 percent of the Pub-2010 General Employee Mortality tables (males and females) for State and Local Government divisions and 170 percent of the Pub-2010 Safety Employee Mortality tables (males and females) for the Public Safety and Law Enforcement divisions. Post-retirement mortality rates are based on 115 percent of the PubG-2010 Retiree Mortality Tables (males and females) for all divisions. Post-retirement mortality rates for disabled retirees are based on the PubNS-2010 Disabled Retiree Mortality Tables (males and females) for all divisions. For all of the previously described tables, the base year is 2010 and mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scales (males and females)to all of these tables. For 2020, pre-retirement mortality rates are based on the RP-2014 Employees mortality table for males and females, adjusted far mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010, respectively. Post-retirement mortality rates are based on the RP-2014 Healthy Annuitant mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010, respectively. Post-retirement mortality rates for disabled retirees are based on the RP-2014 Disabled mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010, respectively. Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to all of the above- described tables. The most recent experience study was completed for the five-year period ended December 31, 2020. During 2021, OPERS managed investments in three investment portfolios: the Defined Benefit portfolio, the Health Care portfolio and the Defined Contribution portfolio. The Health Care portfolio includes the assets for health care expenses for the Traditional Pension Plan, Combined Plan and Member-Directed Plan eligible members. Within the Health Care portfolio,if any contributions are made into the plans, the contributions are assumed to be received continuously throughout the year based on the actual payroll payable at the time contributions are made. Health care-related payments are assumed to occur mid-year. Accordingly, the money-weighted rate of return is considered to be the same for all plans within the portfolio. The annual money-weighted rate of return expressing investment performance, net of investment expenses and adjusted for the changing amounts actually invested, for the Health Care portfolio was 14.3 percent for 2021. The allocation of investment assets within the Health Care portfolio is approved by the Board of Trustees as outlined in the annual investment plan. Assets are managed on a total return basis with a long-term objective of continuing to offer a sustainable health care program for current and future retirees. OPERS' primary goal is to achieve and maintain a fully funded status for the benefits provided through the defined pension plans. Health care is a discretionary benefit. The long-term expected rate of return on health care investment assets was determined using a building-block method in which best-estimate ranges of expected future rates of return are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future rates of return by the target asset allocation percentage, adjusted for inflation. Best estimates of geometric rates of return were provided by the Board's investment consultant. For each major asset class that is included in the Health Care's portfolio's target asset allocation as of December 31, 2021, these best estimates are summarized in the following table: - 71 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Weighted Average Long-Term Eapected Target Real Rate of Return Asset Class Allocation (Geometric) Fixed Income 34.00% 0.91% Domestic Equities 25.00 3.78 Real Estate Investment Trust 7.00 3.71 International Equities 25.00 4.88 Risk Parity 2.00 2.92 Other investments 7.00 1.93 Total 100.00% 3.45% Discount Rate A single discount rate of 6.0 percent was used to measure the OPEB liability on the measurement date of December 31, 2021. Projected benefit payments are required to be discounted to their actuarial present value using a single discount rate that reflects (1) a long-term expected rate of return on OPEB plan investments (to the extent that the health care fiduciary net position is projected to be sufficient to pay benefits), and (2) tax-exempt municipal bond rate based on an index of 20-year general obligation bonds with an average AA credit rating as of the measurement date (to the extent that the contributions for use with the long-term expected rate are not met). This single discount rate was based on an expected rate of return on the health care investment portfolio of 6.00 percent and a municipal bond rate of 1.84 percent (Fidelity Index's "20-Year Municipal GO AA Index"). The projection of cash flows used to determine this single discount rate assumed that employer contributions will be made at rates equal to the actuarially determined contribution rate. Based on these assumptions, the health care fiduciary net position and future contributions were sufficient to finance health care costs through 2121. As a result, the actuarial assumed long-term expected rate of return on health care investments was applied to projected costs through the year 2121, the duration of the projection period through which projected health care payments are fully funded. Sensitivity of the City's Proportionate Share of the Net OPEB Asset to Changes in the Discount Rate The following table presents the City's proportionate share of the net OPEB asset calculated using the single discount rate of 6.00 percent, as well as what the City's proportionate share of the net OPEB liability would be if it were calculated using a discount rate that is one-percentage-point lower (5.00 percent) or one-percentage-point higher(7.00 percent)than the current rate: Current 1%Decrease Discount Rate 1%Increase (5.00%) (6.00%) (7.00%) City's proportionate share of the net OPEB asset $850,286 $1,445,833 $1,940,147 Sensitivity of the City's Proportionate Share of the Net OPEB Asset to Changes in the Health Care Cost Trend Rate Changes in the health care cost trend rate may also have a significant impact on the net OPEB liability. The following table presents the net OPEB asset calculated using the assumed trend rates, and the expected net OPEB asset if it were calculated using a health care cost trend rate that is 1.0 percent lower or 1.0 percent higher than the current rate. - 72 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Retiree health care valuations use a health care cost-trend assumption that changes over several years built into the assumption. The near-term rates reflect increases in the current cost of health care; the trend starting in 2022 is 5.50 percent. If this trend continues for future years, the projection indicates that years from now virtually all expenditures will be for health care. A more reasonable alternative is the health plan cost trend will decrease to a level at, or near, wage inflation. On this basis, the actuaries project premium rate increases will continue to exceed wage inflation for approximately the next decade, but by less each year, until leveling off at an ultimate rate, assumed to be 3.50 percent in the most recent valuation. Current Health Care Cost Trend Rate 1%Decrease Assumption 1%Increase Ciry's proportionate share of the net OPEB asset $1,461,457 $1,445,833 $1,427,298 Actuarial Assumptions—OP&F OP&F's total OPEB liability as of December 31, 2021, is based on the results of an actuarial valuation date of January 1, 2021, and rolled-forward using generally accepted actuarial procedures. The total OPEB liability is determined by OP&F's actuaries in accordance with GASB Statement No. 74, as part of their annual valuation. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, salary increases, disabilities, retirements and employment terminations. Actuarially determined amounts are subject to continual review and potential modifications, as actual results are compared with past expectations and new estimates are made about the future. Projections of benefits for financial reporting purposes are based on the substantive plan (the plan as understood by the employers and plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing benefit costs between the employers and plan members to that point. The projection of benefits for financial reporting purposes does not explicitly incorporate the potential effects of legal or contractual funding limitations. Actuarial calculations reflect a long-term perspective. For a newly hired employee, actuarial calculations will take into account the employee's entire career with the employer and also take into consideration the benefits, if any,paid to the employee after termination of employment until the death of the employee and any applicable contingent annuitant. In many cases, actuarial calculations reflect several decades of service with the employer and the payment of benefits after termination. Key methods and assumptions used in the latest actuarial valuation, reflecting experience study results, are presented below. Valuation Date January 1,2021,with actuarial lrabilities rolled forward to December 31,2021 Actuarial Cost Method Enhy Age Normal Investment Rate of Reh�rn 7.5 percent Projected Salary Increases 3J5 percent to 10.5 percent Payroll Growth 3.25 percent Blended discount rate: Current measurement date 2.84 percent Prior measurement date 2.96 percent Cost of Living Adjustments 2.2 percent simple per year - 73 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 In February 2022, the OP&F Board adopted a change in the investment rate of return, changing it from 8 percent for the 2020 measurement period to 7.5 percent for the 2021 measurement period. Mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006, adjusted accarding to the rates in the following table, and projected with the Buck Modified 2016 Improvement Scale. Rates for surviving beneficiaries are adjusted by 120 percent. Age Police Fire 67 or less 77 % 68 % 68-77 105 87 78 and up 115 120 Mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006, adjusted according to the rates in the following table, and projected with the Buck Modified 2016 Improvement Scale. A ge Po lice Fire 59 or less 35 % 35 % 60-69 60 45 70-79 75 70 80 and up 100 90 The most recent experience study was completed for the five year period ended December 31, 2016. OP&F health care plan follows the same asset allocation and long-term expected real rate of return for each major asset class as the pension plan, see Note 12. Discount Rate For 2021, the total OPEB liability was calculated using the discount rate of 2.84 percent. Far 2020, the total OPEB liability was calculated using the discount rate of 2.96 percent. The projection of cash flows used to determine the discount rate assumed the contribution from employers and from members would be computed based on contribution requirements as stipulated by State statute. Projected inflows from investment earnings were calculated using the longer-term assumed investment rate of return of 7.5 percent. Based on those assumptions, OP&F's fiduciary net position was projected to not be able to make all future benefit payments of current plan members. Therefore, a municipal bond rate of 2.05 percent at December 31, 2021, and 2.12 percent at December 31, 2020, was blended with the long- term rate of 7.5 percent for 2021 and 8 percent for 2020,which resulted in a blended discount rate of 2.84 percent for 2021 and 2.96 percent for 2020. The municipal bond rate was determined using the Bond Buyers General Obligation 20-year Municipal Bond Index Rate. The OPEB plan's fiduciary net position was projected to be available to make all projected OPEB payments until 2037. The long-term expected rate of return on health care investments was applied to projected costs through 2037, and the municipal bond rate was applied to all health care costs after that date. Sensitivity of the City's Proportionate Share of the Net OPEB Liability to Changes in the Discount Rate Net OPEB liability is sensitive to changes in the discount rate, and to illustrate the potential impact the following table presents the net OPEB liability calculated using the discount rate of 2.84 percent, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower(1.84 percent), or one percentage point higher(3.84 percent)than the current rate. - 74 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Current 1%Decrease Discount Rate 1%Increase (1.84%) (2.84%) (3.84%) Ciry's proportionate share of the net OPEB liability $2,166,293 $1,723,354 $1,359,255 Note 14—Other Employee Benefits Compensated Absences The criteria for determining vacation and sick leave benefits are derived from negotiated agreements and State laws. Employees earn two to six weeks of vacation per year, depending upon length of service. Vacation accumulation is limited to one year. All accumulated unused vacation time is paid upon termination of employment. Employees earn sick leave at the rate of 6.47 hours per pay for firefighters and 4.62 hours per pay for all other employees. Upon retirement or death, an employee shall be paid 33 percent of accumulated sick leave. Employees may deduct up to 120 hours from their sick balance and defer payment on it until the following January. Dental Insurance The City provides dental benefits to employees through Lincoln Financial. The family and single premiums for 2022 were $96.85 and$32.10,respectively. Deferved Compensation City employees may participate in the Ohio Public Employees Deferred Compensation Plan. This plan was created in accordance with Internal Revenue Code Section 456 and are considered an other employee benefit plan. Participation is on a voluntary payroll deduction basis. The plans permit deferral of compensation until future years. According to the plans, the deferred compensation is not available until termination, retirement, death or an unforeseeable emergency. Note 15—Contingencies Grants The City received financial assistance from Federal and State agencies in the form of grants. The disbursement of funds received under these programs generally requires compliance with the terms and conditions specified in the grant agreements and are subject to audit by the grantar agencies. Any disallowed claims resulting from such audits could become a liability of the general fund or other applicable funds. However, in the opinion of management, any such disallowed claims will not have a material adverse effect on the overall financial position of the City at December 31, 2022. Litigation The City is party to various legal proceedings. City management is of the opinion that ultimate settlement of such claims not covered by insurance will not result in a material adverse effect on the City's financial position. - 75 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 16—Asset Retirement Obligations The Bureau of Underground Storage Tank Regulations (BUSTR) regulates petroleum and hazardous substances stored in underground storage tanks. These regulations are included in Ohio Administrative Code Section 1301-7-9 and require a City classified as an "owner" or "operator," to remove from the ground any underground storage tank (UST) that is not in use for a year or more. A permit must first be obtained for that year it is not being used. Once the UST is removed, the soil in the UST cavity and excavated material must be tested far contamination. These assets' retirement obligations (ARO) of $64,005 associated with the City's underground storage tanks was estimated by the City engineer. The remaining useful life of these USTs is 30 years. The City maintains insurance related to any potential pollution remediation associated with the USTs. Note 17—Long-Term Obligations The original issue date, interest rate, original issuance amount and maturity date for each of the City's long-term obligations follows: Original Original Date Issue Interest Issue of Date Rate Amount Maturity General Obligafion Bonds: Human Services Faciliry Refunding 2012 1.25%to 2.25% $3,580,000 December 1,2023 Police Facility Project 2017 2.00 to 3.00 8,000,000 December 1,2036 Service Center Garage 2017 2.00 to 3.00 1,980,000 December 1,2036 Police Faciliry Project 2019 2.88 to 5.00 2,000,000 December 1,2043 Aquatic Facility Project 2019 2.88 to 5.00 6,500,000 December 1,2039 State Route 82 Project(A) 2022 3.00 to 4.00 1,560,000 December 1,2030 State Route 82 Project(B) 2022 3.00 to 4.00 1,275,000 December 1,2030 Field House Project 2022 3.00 to 4.00 8,080,000 December 1,2051 Miller Road Project 2022 3.00 to 4.00 940,000 December 1,2041 From Direct Placement: Various Purpose Tree Farm Refunding 2015 2.03 2,525,000 December 1,2025 Tax Increment Financing Revenue Bonds: Valor Acres Project 2022 5.625 9,705,000 December 1,2053 Special Assessment Bonds: Route 21,Hilton,Whitewood Sewer and Storm 2005 3.00 to 5.00 1,075,000 December 1,2025 Katherine Boulevard Improvements 2012 1.25 to 2.25 1,430,000 December 1,2022 Riverview Road Sewer 2012 1.25 to 2.75 575,000 December 1,2032 From Direct Placement: Various Putpose Route 21 Access Road Refunding 2015 2.03 115,000 December 1,2025 Bond Anticipation Notes: Chippewa Road Improvements Notes 2022 232 3,600,000 June 22,2023 OPWCLoans from Direct Borrowings: Route 21,Hilton,Whitewood Sanitary Sewer 2005 0.00 231,143 July 1,2025 Fitzwater,Riverview,Wiese,Carriage Hill Cleaning 2006 0.00 162,934 January 1,2027 Wiese Road Retaining Wall Improvement 2013 0.00 229,030 January 1,2033 Leases: Police Vehicle 2019 1.86 8,744 July 19,2022 Police Vehicle 2022 1.59 6,842 June 30,2024 - 76 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 A schedule of changes in bonds and other long-term obligations of the City during 2022 follows: Principal Principal Amounts Outstanding Outstanding Due in 12/3 U2021 Additions Deletions 12/31/2022 One Year Governmental Activities General Obligations Bonds: 2012 Human Services Facility Refunding $805,000 $0 ($400,000) $405,000 $405,000 Premium on Bonds 16,480 0 (8,240) 8,240 0 2017 Police Facility Project Serial Bond 2,660,000 0 (105,000) 2,555,000 110,000 Term Bond 4,710,000 0 0 4,710,000 0 Premium on Bonds 107,689 0 (7,179) 100,510 0 2017 Service Center Garage Serial Bond 660,000 0 (90,000) 570,000 90,000 Term Bond 935,000 0 0 935,000 0 Premium on Bonds 27,894 0 (1,860) 26,034 0 2019 Police Facility Project Serial Bond 725,000 0 (50,000) 675,000 55,000 TermBond 1,160,000 0 0 1,160,000 0 Premium on Bonds 90,222 0 (4,101) 86,121 0 2019 Aquatic Facility Project Serial Bond 3,225,000 0 (230,000) 2,995,000 240,000 Term Bond 2,845,000 0 0 2,845,000 0 Premium on Bonds 451,550 0 (20,525) 431,025 0 2022 State Route 82 Project(A) Serial Bond 0 1,560,000 (135,000) 1,425,000 155,000 Premium on Bonds 0 181,840 (20,208) 161,632 0 2022 State Route 82 Project(B) Serial Bond 0 1,275,000 (110,000) 1,165,000 130,000 Premium on Bonds 0 148,316 (16,476) 131,840 0 2022 Field House Project Serial Bond 0 45,000 (5,000) 40,000 5,000 Term Bond 0 8,035,000 0 8,035,000 0 Premium on Bonds 0 671,938 (22,396) 649,542 0 2022 Miller Road Project Serial Bond 0 340,000 (30,000) 310,000 35,000 Term Bond 0 600,000 0 600,000 0 Premium on Bonds 0 81,912 (4,088) 77,824 0 From Direct Placement: 2015 Various Purpose Tree Farm Refunding 1,070,000 0 (265,000) 805,000 265,000 Total General Obligation Bonds 19,488,835 12,939,006 (1,525,073) 30,902,768 1,490,000 Tax Lncrement Financing Revenue Bonds: 2022 Valor Acres Project 0 9,705,000 0 9,705,000 0 Discount on Bonds 0 (388,200) 0 (388,200) 0 Total Tax Incr-emenX Financing Revenue Bonds 0 9,316,800 0 9,316,800 0 Special Assessment Bonds: 2005 Route 21,Hilton,Whitewood Sewer and Storm 305,000 0 (65,000) 240,000 75,000 2012 Katherine Boulevard Improvements 155,000 0 (155,000) 0 0 Premium on Bonds 3,806 0 (3,806) 0 0 2012 Riverview Road Sewer Serial Bond 60,000 0 (30,000) 30,000 30,000 Term Bond 290,000 0 0 290,000 0 From Direct Placement: 2015 Various Purpose Route 21 Access Road Refunding 55,000 0 (L0,000) 45,000 L0,000 Total Special Assessment Bonds 868,A06 0 (263,A06) 605,000 1 15,000 Bond Anticipation Notes: 2021 Field House Bond Anticipation Notes 8,600,000 0 (8,600,000) 0 0 2021 Route 82 Bond Anticipation Notes 3,110,000 0 (3,110,000) 0 0 2021 Interchange at Miller Road and Interstate 77 Notes 1,000,000 0 (1,000,000) 0 0 Premium on Notes 99,918 0 (99,918) 0 0 2022 Chippewa Road Improvements Notes 0 3,600,000 0 3,600,000 0 TotalBondAnticipatzonNotes $12,809,918 $3,600,000 ($12,809,918) $3,600,000 $0 (continued) - 77 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Principal Principal Amounts Outstanding Outstanding Due in 12/31/2021 Additions Deletions 12/31/2022 One Year Governmental Activities(continued) OPWC Loans from Direct Borrowings: 2005 Route 21,Hilton,Whitewood Sanitary Sewer $46,228 $0 ($11,557) $34,671 $11,557 2006 Fitzwater,Riverview Wiese,Carriage Hill Cleaning 44,806 0 (8,146) 36,660 8,147 2013 Wiese Road Retaining Wall Improvement 143,144 0 (11,452) 131,692 11,451 TotaIOPWCLoans 234,178 0 (31,155) 203,023 31,155 Leases 2,936 6,842 (4,412) 5,366 3,406 NetPension Liability: OPERS 6,806,859 0 (2,647,023) 4,159,836 0 OP&F 11,036,710 0 (1,214,019) 9,822,691 0 Total NetPension Liability 17,843,569 0 (3,861,042) 13,982,527 0 Net OPEB Liability: OP&F 1,715,333 8,021 0 1,723,354 0 Compensated Absences 1,136,920 178,357 (255,468) 1,059,809 250,979 Asset Retirement Obligations 64,005 0 0 64,005 0 TotalGovernmentalActivities $54,164,500 $26,049,026 ($18,750,874) $61,462,652 $1,890,540 On September 20, 2012, the City issued $3,580,000 in general obligation bonds for the purpose of refunding a portion of the 2004 Human Services Facility Bonds. These bonds were issued for a twelve year period with a final maturity of December 1, 2023. The proceeds of the new bonds were placed in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City's financial statements. On December 31, 2022, $425,000 of the defeased bonds are still outstanding. During 2015, the City issued $2,525,000 of various purpose refunding bonds for the purpose of retiring the 2005 tree farm property bonds and $115,000 of various purpose refunding bonds for the purpose of retiring the 2005 Route 21 Access Road special assessment bonds from direct placement. The new bonds were issued for a period of 10 years at an interest rate of 2.03 percent. The proceeds of the new bonds were placed in an irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the City's financial statements. On December 31, 2022, $905,000 of the defeased bonds are still outstanding. Prior Redem�tion The bonds maturing on and after December 1, 2021, are subject to prior redemption on and after December 1, 2020,by and at the sole option of the City, either in whole or in part (as selected by the City) on any date and in whole multiples of $5,000, at par, plus accrued interest to the redemption date. On June 7, 2017, the City issued $8,000,000 and $1,980,000 in general obligation bonds for the purpose of the construction of the new police station building and the retirement of 2016 bond anticipation notes related to the service center garage project, respectively. $4,335,000 of the bonds issued were serial bonds, while $5,645,000 of the bonds issued were term bonds. These bonds were issued for a twenty year period with a final maturity of December 1, 2036. Mandator:v Redemption The bonds maturing on December 1, 2036, are subject to mandatory sinking fund redemption in part by lot pursuant to the terms of the mandatory sinking fund redemption requirements of the authorizing legislation, at a redemption price equal to 100 percent of the principal amount redeemed,plus interest accrued to the redemption date, on December 1 of the years shown in, and according to,the following schedule. - 78 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Principal Amount Year to be Redeemed 2029 $640,000 2030 655,000 2031 675,000 2032 695,000 2033 715,000 2034 735,000 2035 755,000 Total mandatory sinking fund payment 4,870,000 Amount due at stated maturiry 775,000 Total $5,645,000 Statecl Maturity 12/1/2036 O�tional Redemption The bonds maturing on or after December 1, 2026, are subject to priar redemption, by and at the sole option of the City, in whole or in part as selected by the City (in whole multiples of $5,000), on any date on or after December 1, 2025, at a redemption price equal to 100 percent of the principal amount redeemed, plus interest accrued to the redemption date. On June 12, 2019, the City issued$8,500,000 in general obligation bonds for the purpose of constructing, reconstructing, renovating, enlarging, furnishing, equipping and otherwise improving the municipal swimming pool facilities and related recreational facilities as well as the new police department and otherwise improving the site. $4,495,000 of the bonds issued were serial bonds, while $4,005,000 of the bonds issued were term bonds. These police facility and aquatic facility bonds were issued for a twenty- five and twenty year period with a final maturity of December 1, 2043 and December 1, 2039, respectively. Mandatory Redemption The bonds maturing on December 1, 2039 and December 1, 2043, are subject to mandatory sinking fund redemption in part by 1ot pursuant to the terms of the mandatory sinking fund redemption requirements of the authorizing legislation, at a redemption price equal to 100 percent of the principal amount redeemed, plus interest accrued to the redemption date, on December 1 of the years shown in, and according to, the following schedule. Principal Amount Principal Amount Year to be Redeemed to be Redeemed 2033 $460,000 $0 2034 470,000 0 2035 485,000 0 2036 495,000 0 2037 5 I 0,000 0 2038 525,000 0 2040 0 100,000 2041 0 135,000 2042 0 140,000 Total mandatory sinking fund payment 2,945,000 375,000 Amount due at stated maturity 540,000 145,000 Total $3,485,000 $520,000 Stated Maturity 12/1/2039 12/1/2043 - �9 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Optional Redem�tion The bonds maturing on or after December 1, 2027, are subject to prior redemption, by and at the sole option of the City, in whole ar in part as selected by the City (in whole multiples of $5,000), on any date on or after December 1, 2025, at a redemption price equal to 100 percent of the principal amount redeemed, plus interest accrued to the redemption date. On February 15, 2022, the City issued $11,855,000 in general obligation bonds. $2,835,000 was for the purpose of State Route 82 street improvements. $8,080,000 was for the purpose of paying costs of designing, developing, constructing, installing, equipping and improving an athletic fieldhouse to be located on the Blossom Hill property on Oakes Road. $940,000 was for the purpose of expanding the interchange at Miller Road and Interstate 77. $3,220,000 of the bonds issued were serial bonds, while $8,635,000 of the bonds issued were term bonds. These bonds were issued for a thirty year period with a final maturity of December 1, 2051. At December 31, 2022, the $8,080,000 field house project obligations had unspent proceeds of$498,523. Mandatory Redemption The bonds maturing on December 1, 2032, December 1, 2037, December 1, 2039, December 1, 2042, December 1, 2044, and December 1, 2051, are subject to mandatory sinking fund redemption in part by lot pursuant to the terms of the mandatory sinking fund redemption requirements of the autharizing legislation, at a redemption price equal to 100 percent of the principal amount redeemed, plus interest accrued to the redemption date, on December 1 of the years shown in, and according to,the following schedule. Principal Amount Principal Amount Principal Amount Principal Amount Principal Amount Principal Amount Year to be Redeemed to be Redeemed to be Redeemed to be Redeemed to be Redeemed to be Redeemed 2031 $210,000 $0 $0 $0 $0 $0 2033 0 230,000 0 0 0 0 2034 0 235,000 0 0 0 0 2035 0 245,000 0 0 0 0 2036 0 250,000 0 0 0 0 2038 0 0 445,000 0 0 0 2040 0 0 0 470,000 0 0 2041 0 0 0 490,000 0 0 2043 0 0 0 0 450,000 0 2045 0 0 0 0 0 480,000 2046 0 0 0 0 0 495,000 2047 0 0 0 0 0 515,000 2048 0 0 0 0 0 535,000 2049 0 0 0 0 0 560,000 2050 0 0 0 0 0 580,000 Total mandatory sinking fund payment 210,000 960,000 445,000 960,000 450,000 3,165,000 Amount due at stated maturiry 225,000 255,000 460,000 435,000 465,000 605,000 Total $435,000 $1,215,000 $905,000 $1,395,000 $915,000 $3,770,000 Stated Maturity 12/1/2032 12/1/2037 12/1/2039 12/1/2042 12/1/2044 12/1/2051 Optional Redem�tion The bonds maturing on or after December 1, 2032, are subject to prior redemption, by and at the sole option of the City, in whole ar in part as selected by the City (in whole multiples of $5,000), on any date on or after December 1, 2030, at a redemption price equal to 100 percent of the principal amount redeemed, plus interest accrued to the redemption date. - 80 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 On May 24, 2022,the City issued $9,705,000 in tax increment financing(TIF)revenue term bonds for the purpose of paying costs of constructing and improving public infrastructure in the Valor Acres development and paying certain financing and other costs of the bonds. The bonds carry an interest rate of 5.625 percent and will mature on December 1, 2053. The bonds are secured with TIF revenue on the parcels involved with the project. Any shortfalls on the debt service payments generated from the TIF revenue are not held against the City, but rather moneys held by the Trustee in the Debt Service Reserve Fund. The bonds have $1,561,351 in unspent proceeds (before related contracts payables) as of December 31, 2022. Mandatory Redem�tion The bonds are subject to mandatory redemption at a redemption price equal to 100 percent of the principal amount redeemed, plus accrued interest to the redemption date, accarding to the following schedule: Principal Amount Year to be Redeemed 2025 $100,000 2026 140,000 2027 145,000 2028 155,000 2029 165,000 2030 175,000 2031 180,000 2032 190,000 2033 205,000 2034 215,000 2035 225,000 2036 240,000 2037 255,000 2038 265,000 2039 280,000 2040 300,000 2041 315,000 2042 330,000 2043 350,000 2044 370,000 2045 390,000 2046 415,000 2047 435,000 2048 460,000 2049 485,000 2050 515,000 2051 545,000 2052 575,000 Total mandatory sinking fund payment 8,420,000 Amount due at stated maturity 1,285,000 Total $9,705,000 Stated Maturity 12/1/2053 Optional Redem�tion The bonds maturing on or after December 1, 2033, are subject to prior redemption on any date occurring on or after December 1, 2032, at the option of the issuer, in whole or in part, in $5,000 increments, at a redemption price equal to 100 percent of the principal amount redeemed plus interest accrued on that principal amount to the redemption date, following written notice provided to the hold at least thiriy days prior to the date of redemption. - 81 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 On September 8, 2005, the City issued $1,075,000 in special assessment bonds for sanitary sewer construction on Route 21 and on Hilton and Whitewood Roads. The bonds were issued for a twenty year period with final maturity at December 1, 2025. These bonds were partially refunded in 2015. On September 20, 2012 the City issued $1,430,000 in special assessment bonds for infrastructure improvements on Katherine Boulevard. The bonds were issued for a ten year period with final maturity on December 1, 2022. On September 20, 2012 the City issued $575,000 in special assessment bonds for sanitary sewer construction on Riverview Road. The bonds were issued for a twenty year period with final maturity on December 1,2032. Mandatory Redemption The Riverview Road bonds are subject to mandatary sinking fund redemption at a redemption price of 100 percent of the principal amount to be redeemed, plus accrued interest to the date of redemption, on December 1 of the years and in the respective principal amounts as follows: Principal Amount Year to be Redeemed 2024 $30,000 2025 30,000 2026 30,000 2027 30,000 2028 30,000 2029 35,000 2030 35,000 2031 35,000 Total mandatory sinking fund payment 255,000 Amount due at stated maturity 35,000 Total $290,000 Stated Maturity 12/1/2031 O�tional Redemption The bonds maturing on or after December 1, 2022, will be subject to prior redemption, on or after December 1, 2021, by and at the option of the City, either in whole or in part on any date, and in integral multiples of $5,000, at par, plus accrued interest to the redemption date. On February 24, 2021, the City issued bond anticipation notes in the amount of $10,560,000. Of this amount, $8,600,000 was for the purpose of paying costs of designing, developing, constructing, installing, equipping and improving an athletic fieldhouse to be located on the Blossom Hill property on Oakes Road, $960,000 was for the purpose of Route 82 street improvements in a joint project with the City of Broadview Heights, and$1,000,000 was far the purpose of expanding the interchange at Miller Road and Interstate 77. The notes were issued at an interest rate of 1.00 percent and matured on February 24, 2022. The notes were issued with a premium of$83,213. On June 2, 2021, the City issued bond anticipation notes in the amount of$2,150,000. Of this amount, $750,000 was for the purpose of Route 82 street improvements in a joint project with the City of Broadview Heights and $1,400,000 for the purpose of Route 82 street improvements. The notes were issued at an interest rate of 1.25 percent and matured on February 24, 2022. The notes were issued with a premium of$16,705. - 82 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 On June 23, 2022, the City issued bond anticipation notes in the amount of$5,200,000, which was for the purpose of constructing sanitary sewer along a portion of Chippewa Road. $1,600,000 of these notes was paid down and was reflected as a fund liabiliry at December 31, 2022. The notes were issued at an interest rate of 2.322 percent and mature on June 22, 2023. At December 31, 2022, the City notes were considered to be unspent proceeds. The OPWC loans from direct borrowings contain provisions that in an event of default (1) OPWC may apply late fees of 8 percent per year, (2) loans more than 60 days late will be turned over to the Attorney General's office for collection, and as provided by law, the OPWC may require that such payment be taken from the City's share of the City undivided local government fund. The OPWC administers Issue II loans. The City has outstanding agreements to lease police vehicles. Due to the implementation of GASB Statement 87, these leases have met the criteria of leases thus requiring them to be recorded by the City. The future lease payments were discounted based on the interest rate implicit in the lease. This discount is being amortized using the interest method over the life of the lease. A summary of the principal and interest amounts for the remaining leases is as follows: Principal Interest 2023 $3,406 $734 2024 1,960 110 Total $5,366 $844 All bonds are secured by the full faith and credit of the City. General obligation bonds will be paid from existing balances and transfers into the debt service fund. Tax increment financing revenue bonds will be paid from the debt urban redevelopment tax increment equivalents fund, which will be paid from payments in lieu of taxes agreed upon by the City. The special assessment bonds will be paid from the proceeds of special assessments levied against benefited property owners. In the event that a property owner would fail to pay the assessment,payment would be made by the City. The loans wi11 be paid with monies from the Issue II capital projects fund. The leases will be paid from the general fund. There is no repayment schedule for net pension/OPEB liabilities; however, employer pension contributions are made from the general fund and the fire department, community center, enforcement and education, police pension, and local fiscal recovery special revenue funds. For additional information related to the net pension/OPEB liabilities see Notes 12 and 13. Compensated absences will be paid from the general fund and the fire department and community center special revenue funds. Asset retirement obligations will be paid from the buildings and improvements or general municipal improvement capital projects fund. The City's overall legal debt margin was $50,103,865 at December 31, 2022. Principal and interest requirements to retire long-term obligations outstanding at December 31, 2022, are as follows: - 83 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 General Obligation Bonds General Obligation Bonds from Serial Portion Term Portion Direct Placement-Serial Principal Interest Principal Interest Principal Interest 2023 $1,225,000 $946,988 $0 $0 $265,000 $16,341 2024 1,195,000 909,376 0 0 270,000 10,962 2025 1,230,000 869,577 0 0 270,000 5,481 2026 1,290,000 822,776 0 0 0 0 2027 1,335,000 773,576 0 0 0 0 2028-2032 3,865,000 2,010,551 3,100,000 1,126,038 0 0 2033-2037 0 0 6,615,000 2,006,137 0 0 2038-2042 0 0 3,740,000 1,212,644 0 0 2043-2047 0 0 2,550,000 741,550 0 0 2048-2051 0 0 2,280,000 232,600 0 0 Total $10,140,000 $6,332,844 $18,285,000 $5,318,969 $805,000 $32,784 OPWC Loans Tax Increment Financing Special Assessment Bonds from Direct Revenue Bonds-Term Serial Portion Term Portion Borrowings Principal Interest Principal Interest Principal Interest Principal 2023 $0 $545,906 $115,000 $13,589 $0 $7,975 $31,155 2024 0 545,906 95,000 8,960 30,000 7,975 31,156 2025 100,000 545,907 105,000 4,656 30,000 7,150 31,155 2026 140,000 540,281 0 0 30,000 6,325 19,598 2027 145,000 532,406 0 0 30,000 5,500 15,524 2028-2032 865,000 2,528,719 0 0 170,000 14,300 57,258 2033-2037 1,140,000 2,256,750 0 0 0 0 17,177 2038-2042 1,490,000 1,899,000 0 0 0 0 0 2043-2047 1,960,000 1,429,875 0 0 0 0 0 2048-2052 2,580,000 813,094 0 0 0 0 0 2053 1,285,000 72,281 0 0 0 0 0 Total $9,705,000 $11,710,125 $315,000 $27,205 $290,000 $49,225 $203,023 Note 18-Short-Term Obligations On June 23, 2022, the City issued bond anticipation notes in the amount of$5,200,000, which was for the purpose of constructing sanitary sewer along a portion of Chippewa Road. $1,600,000 of these notes was paid down and was reflected as a fund liability at December 31, 2022. The notes were issued at an interest rate of 2322 percent and mature on June 22, 2023. At December 31, 2022, the City had unspent proceeds of$59,881. On September 21, 2022, the City issued bond anticipation notes in the amount of$4,550,000, which was for the purpose of paying costs of expanding the interchange at Miller Road and Interstate 77. The notes were issued at an interest rate of 4.00 percent and mature on September 21, 2023. The notes were issued with a premium of$44,454. Principal Principal Outstanding Outstanding 12/31/2021 Additions Deletions 12/31/2022 Governmental Activities 2022 Bond Anticipation Notes $0 $1,600,000 $0 $1,600,000 2022 Bond Anticipation Notes 0 4,550,000 0 4,550,000 Premium on Notes 0 44,454 0 44,454 TotalNotesPayable $0 $6,194,454 $0 $6,194,454 - 84 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 19—Fund Balances Fund balance is classified as nonspendable, restricted, committed, assigned and/or unassigned based primarily on the extent to which the City is bound to observe constraints imposed upon the use of the resources in the government funds. The constraints placed on fund balance for the major governmental funds and all other governmental funds are presented as follows: General Obligation General Fire Bond Municipal Fund Balances General Department Retirement Improvement Nonspendable: Materials and Supplies Inventory $256,963 $51,250 $0 $0 Prepaid Items 287,015 317 0 0 Assets Held for Resale 137,100 0 0 0 Unclaimed Monies 4,350 0 0 0 Interfund Loans 39,000 0 0 0 Total Nonspendable 724,428 51,567 0 0 Restricted for: Capital Projects 0 0 0 0 Debt Service 0 0 645,306 0 Court Computerization 0 0 0 0 Fire Department 0 1,405,041 0 0 Police Department 0 0 0 0 Road Maintenance 0 0 0 0 Street Construction,Maintenance,and Repair 0 0 0 0 Other Purposes 0 0 0 0 Total Restricted 0 1,405,041 645,306 0 Committed to: Capital Projects 0 0 0 0 Police Department 0 0 0 0 Other Purposes 0 0 0 0 Purchases on Order: City Administration 619,971 0 0 0 Public Safety 26,067 0 0 0 Maintenance and Services 229,ll9 0 0 0 Other Purposes 7,085 0 0 0 Total Committed 882,242 0 0 0 Assigned to: Capital Projects 0 0 0 0 Purchases on Order: City Administration 9,450 0 0 0 Public Safety 3,617 0 0 0 Maintenance and Services 3,435 0 0 0 Other Purposes 2,990 0 0 0 2023 Appropriations 365,335 0 0 0 TotalAssigned 384,827 0 0 0 Unassigned(Deficit) 14,393,920 0 0 (87,848) Total Fund Balance(Deficit) $16,385,417 $1,456,608 $645,306 ($87,848) (continued) - 85 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Capital Urban Redevelopment Other Total Buildings and Road Tax Increment Govemmental Governmental Fund Balances(continued) Improvements Improvements Equivalents Funds Funds Nonspendable: Materials and Supplies Inventory $0 $0 $0 $69,655 $377,868 PrepaidItems 0 0 0 2,778 290,110 Assets Held for Resale 0 0 0 0 137,100 Unclaimed Monies 0 0 0 0 4,350 Interfund Loans 0 0 0 0 39,000 Total Nonspendable 0 0 0 72,433 848,428 Restricted for: Capital Projects 0 0 4,867 233,597 238,464 Debt Service 0 0 0 1,695,111 2,340,417 Court Computerization 0 0 0 146,860 146,860 Fire Department 0 0 0 0 1,405,041 Police Department 0 0 0 530,590 530,590 Road Maintenance 0 0 0 316,100 316,100 Street Construction,Maintenance,and Repair 0 0 0 1,000,203 1,000,203 Other Purposcs 0 0 0 1 ll,223 111,223 Total Restricted 0 0 4,867 4,033,684 6,088,898 Committed to: Capital Projects 1,944,286 1,930,378 0 1,479,426 5,354,090 Police Department 0 0 0 5,957 5,957 Other Purposes 0 0 0 735,465 735,465 Purchases on Order: Ciry Administration 0 0 0 0 619,971 Public Safety 0 0 0 0 26,067 Maintenance and Services 0 0 0 0 229,119 Other Purposes 0 0 0 0 7,085 Total Committed 1,944,286 1,930,378 0 2,220,848 6,977,754 Assigned to: Capital Projects 0 0 0 1,244,030 1,244,030 Purchases on Order: Ciry Administration 0 0 0 0 9,450 Public Safety 0 0 0 0 3,617 Maintenance and Services 0 0 0 0 3,435 Other Purposes 0 0 0 0 2,990 2023 Appropriations 0 0 0 0 365,335 Total Assio ed 0 0 0 1,244,030 1,628,857 Unassigned(Deficit) 0 0 0 (26,021) 14,280,051 Total Fund Balance $1,944,286 $1,930,378 $4,867 $7,544,974 $29,823,988 - 86 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 20- Significant Commitments Encumbrances Encumbrances are commitments related to unperformed contracts for goods or services. Encumbrance accounting is utilized to the extent necessary to assure effective budgetary control and accountability and to facilitate effective cash planning and control. At year end the amount of encumbrances expected to be honored upon performance by the vendor in the next year were as follows: General $1,106,775 Fire Department 32,210 General Municipal Improvement 5,173,527 Buildings and Improvements 217,559 Other Governmental Funds 239,753 Total $6,769,824 Contr�actual Coinmitments At December 31, 2022, the City's significant contractual commitments consisted of the following: Contract Amount Remaining Project Amount Paid on Contract Sanitary Sewer $6,077,529 $1,115,594 $4,961,935 Buildings and Improvements 1,108,871 958,141 150,730 Professional Services 516,904 471,987 44,917 ERP Implementation 510,369 23,472 486,897 Disposal Services 364,000 340,475 23,525 Roads 201,670 66,125 135,545 Stormwater ll6,013 90,527 25,486 Jail Services 28,000 24,407 3,593 Sidewalks 24,650 12,325 12,325 Land Improvements 16,355 1,835 14,520 Traffic Signals 13,670 0 13,670 Totals $8,978,031 $3,104,888 $5,873,143 The amounts remaining on these contracts were encumbered at year end. The amounts of $57,469, $1,870,422, and $304,710 in accounts, contracts, and retainage payable, respectively, for governmental activities have been capitalized. Note 21 -Insurance Purchasing Pool The Ohio Association of Public Treasurers has created a group insurance pool for purpose of creating a group rating plan for workers' compensation. The governing body is comprised of the members who have been appointed by the respective governing body of each member. The intent of the pool is to achieve a reduced rate for the City and the other group members. The injury claim history of all participating members is used to calculate a common rate for the group. An annual fee is paid to Sedgwick Claims Management Service,Incorporated to administer the group and to manage any injury claims. Premium savings created by the group are prorated to each member entity annually based on claims experience of each member as compared to the total claims experience of the group. - 87 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 22 —Jointly Governed Organizations Southwest Council of GoveNnments The Southwest Council of Governments (the Council) helps foster cooperation between municipalities in areas affecting health, safety, welfare, education, economic conditions and regional development. The Board is comprised of one member from each of the twenty participating entities. The Board exercises total control over the operation of the Council including budgeting, appropriating, contracting and designating management. Budgets are adopted by the Board. Each City's degree of control is limited to its representation on the Board. In 2022,the City contributed$22,500. The Council has established two subsidiary organizations, the Southwest Emergency Response Team, which provides hazardous material and technical rescue protections and assistance, and the Southwest Enforcement Bureau, which provides extra assistance to cities in the form of a SWAT Team. The Council's financial statements may be obtained by contacting Eric Dean, City of Strongsville, Southwest Council of Governments, 16099 Foltz Parkway, Strongsville, Ohio 44149. Northeast Ohio Public Energy Council The City is a member of the Northeast Ohio Public Energy Council (NOPEC). NOPEC is a regional council of governments formed under Chapter 167 of the Ohio Revised Code. NOPEC was formed to serve as a vehicle for communities wishing to proceed jointly with an aggregation program for the purchase of electricity. NOPEC is currently comprised of approximately 230 communities who have been authorized by ballot to purchase electricity on behalf of their citizens. The intent of NOPEC is to provide electricity at the lowest possible rates while at the same time insuring stability in prices by entering into long-term contracts with suppliers to provide electricity to the citizens of its member communities. NOPEC is governed by a General Assembly made up of one representative from each member community. The representatives from each county then elect one person to serve on the eight-member NOPEC Board of Directors. In 2022, the City made no contributions. The Board oversees and manages the operation of the aggregation program. The degree of control exercised by any participating government is limited to its representation in the General Assembly and on the Board. Financial information can be obtained by contacting Ronald McVoy, the Board Chairman, at 31360 Solon Road, Suite 33, Solon, Ohio,44139 or at the website www.nopec.org. Cuyahoga Valley Council of Governments The City participates in the Cuyahoga Valley Council of Governments (the Council). The Council was formed to share jail and community services, foster municipal service, and coordinate action among its members in matters relating to public safety dispatch operations. The Council may also, at its discretion, promote cooperative agreements and contracts among its members or other governmental agencies and private persons, corporations, or agencies. The Council is controlled by an executive Board which is composed of a President, Vice President, Secretary and Fiscal Officer, who serves as Treasurer. The elected officers shall seroe for a period of two years. Each member's control over the operation of the Council is limited to its representation on the Board. In 2022, the City made no contributions. Complete financial statements can be obtained from the Cuyahoga Valley Council of Governments, Cuyahoga County, Ohio. - 88 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Chagrin Valley Dispatch Council The City is a member of the Chagrin Valley Dispatch Council (CVDC). The CVDC was formed by the Council to foster cooperation through the sharing of operations of a central dispatch center for safety forces of the participating entities. The CVDC is comprised of 33 member agencies. The CVDC also provides information technology services to those who decide to participate, which consists of seven communities. The CVDC is provided with legislate oversight from the Mayors and City Managers of the various communities. The Administrative Board consists of the chiefs of police and fire of each member municipality. The Administrative Board oversees and manages the operation of the program. The degree of control exercised by a participating government is limited to its representation on the Administrative Board. The City made contributions to the CVDC (excluding initial equipment purchases) in the amount of$448,871 during 2022, and also contributed $288,000 for information technology services during the year. Financial information can be obtained by contacting Vic Nogalo, Finance Director, 88 Center Road, Suite B 100, Bedford, Ohio 44146. Regional Income Tax Agency The Regional Income Tax Agency (RITA) is a regional council of governments formed to establish a central collection facility for the purpose of administering the income tax laws of the members and for the purpose of collection income taxes on behalf of each member. RITA currently has approximately 374 members in the council of governments. Each member has one representative to the council of governments and is entitled to one vote on items under consideration. RITA is administered by a nine- member board of trustees elected by the members of the council of governments. The board exercises total control over RITA's operation including budgeting, appropriating, contracting and designating management. Each participant's degree of control is limited to its representation on the council. For 2022, these costs are not yet available; however, they are not expected to be significantly different from 2021. For 2021, the City paid RITA $233,300 for income tax collection services. Note 23 —Related Organization The Brecksville Community Improvement Corparation (CIC) was formed to promote and assist in economic development within the City. City Council created the CIC during 2014 and appointed the initial CIC Board members. The CIC does not represent a potential financial benefit for or burden on the City. In 2018, the City and CIC entered into a development agreement with DiGeronimo Development LLC for the development of the former Veterans Administration(VA)property. The City also transferred said property to the CIC during the year. In 2019, the CIC approved and remitted a payment of$750,000 to the City of Brecksville. The City recorded this receipt into the general fund. During 2020, the CIC acquired adjacent properties, transferred them to the City, which then was transferred back to the CIC. A portion of the former VA property and adjacent properties was transferred from the CIC to final owners for economic development. Also, the CIC approved and remitted a payment of$1,175,000 to the City. The City recorded this receipt into the general fund. During 2021, the CIC transferred a portion of the former VA property and adjacent properties to the final owners for economic development. During 2022, the CIC approved and remitted a payment of$2,896,568 to the City. The City recorded this receipt into the general fund. As of December 31, 2022, the CIC only holds one parcel of the former VA property for resale. - 89 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 24—Donor Restricted Endowments The City's private purpose trust fund includes donor restricted endowments. Endowments, in the amount of$3,000, represent the principal portion. The amount of interest on donor restricted investments that is available for expenditures by the City is $338 and is included as held in trust for cemetery. State law permits the City to appropriate, for purposes consistent with the endowment's intent, net appreciation, realized and unrealized, unless the endowment terms specify otherwise. The endowments indicate that the interest should be used for the decoration of specifically named graves. Note 25—Accountability The general municipal improvement capital projects fund had a deficit balance of $87,848 as of December 31, 2022. This deficit resulted from the issuance of short-term general obligation notes, which are used to finance the projects until bonds are issued. Once the notes are retired or bonds are issued, the deficit will be eliminated. The special assessments bond retirement fund had a deficit balance of$26,021 as of December 31, 2022. This deficit resulted from a short-term interfund loan from the general fund needed for debt service payments until the receipt of special assessments. The general fund provides transfers to cover deficit balances; however, this is done when cash is needed rather than when accruals occur. Note 26—COVID-19 The United States and the State of Ohio declared a state of emergency in March of 2020 due to the COVID-19 pandemic. Ohio's state of emergency ended in June of 2021 while the national state of emergency ended in April of 2023. During 2022,the City received COVID-19 funding. The City will continue to spend available COVID-19 funding consistent with the applicable program guidelines. The City has applied for and been awarded $1,430,723 of funding from the Coronavirus Local Fiscal Recovery Fund. The City received$712,517 in 2021 and$718,206 in 2022. In January of 2022 the U.S. Department of the Treasury (Treasury) adopted the final rule implementing the Coronavirus Local Fiscal Recovery Fund established under the American Rescue Plan Act. The provisions in this final rule are effective as of April 1, 2022. The funding can be used to replace lost public sector revenue, support the COVID-19 public health and economic response, provide premium pay for eligible workers performing essential work, and invest in water, sewer, and broadband infrastructure. In April of 2022, City Council passed a Resolution number 5278 to utilize the funds for the replacement of lost revenue. Under this option,which is newly offered in the final rule, the Treasury presumes that up to $10 million in revenue has been lost due to the public health emergency and recipients are permitted to use that amount (not to exceed the award amount) to fund "government services." Government services generally include any service traditionally provided by a government, including construction of roads, provision of public safety, and general government administration. City Council further approved the expenditure of funds as government services to be applied towards salaries,wages, and related benefits of the City's Police Department and all funding has been exhausted by December 31, 2022. - 90 - City of Brecksville, Ohio Notes to the Basic Financial Statements For the Year Ended December 31, 2022 Note 27— Subsequent Events On January 3, 2023, the City passed Ordinance 5579 authorizing the Mayor to enter into a collective bargaining agreement with the Ohio Patrolmen's Benevolent Association representing the Brecksville police department patrolmen for the period beginning January 1, 2023 and ending December 21, 2025. On April 4, 2023, the City passed Ordinance number 5604 providing for the issuance and sale of not to exceed $3,600,000 of notes, in anticipation of the issuance of bonds, for the purpose of paying, in anticipation of the levy and collection of special assessments, the property owners' portion and the City portion of the costs of constructing an 8' sanitary sewer and 6' sanitary sewer laterals, together with all necessary appurtenances to extend sanitary sewer along Chippewa Road from Riverview Road to Wiese Road and along Calvin Drive and extending to the termini point of Glen Valley Drive allowing for the removal of the Glen Valley Pump Station. The City will close this note issue on June 21, 2023, with a maturity date of June 20,2024 with an interest rate of 4.5 percent per annum. - 91 - (This Page Intentionally Left Blank) - 92 - Required Supplementary Information - 93 - City of Brecksville,Ohio Reguired Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Liability Ohio Public Employees Retirement System-Traditional Plan Last Nine Years(1)* 2022 2021 2020 Ciry's Proportion of the Net Pension Liability 0.04781200% 0.04596800% 0.04681500'% Ciry's Proportionate Share of the Net Pension Liability $4,159,836 $6,806,859 $9,253,302 Ciry's Covered Payroll $6,938,843 $6,474,371 $6,528,964 City's Proportionate Share of the Net Pension Liability as a Percentage of its Covered Payroll 59.95% 105.14% 141.73% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 92.62% 86.88% 82.17% (1)Although this schedule is intended to show information for ten years,information prior to 2014 is not available.An additional column will be added each year. *Amounts presented for each year were determincd as of the City's measurement date,which is the prior year end. See accompanying notes to the required supplementary information. - 94 - 2019 2018 2017 2016 2015 2014 0.04989200% 0.05081400% 0.05082200'% 0.05089900% 0.05221000% 0.05221000'% $13,664,410 $7,971,731 $11,540,812 $8,816,348 $6,297,110 $6,154,879 $6,738,857 $6,715,146 $6,569,792 $6,334,843 $6,400,950 $6,342,796 202.77% 118.71% 175.66'%a 139.17% 9838% 97.04% 74.70% 84.66% 77.25°/a 81.08% 86.45% 8636'% - 95 - City of Brecksville,Ohio Reguired Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Asset Ohio Public Employees Retirement System-Corr�bined Plan Last Five Years(1)* 2022 2021 2020 Ciry's Proportion of the Net Pension Asset OA2516400% 0.02713500% 0.03244700'% City's Proportionate Share of the Net Pension Asset $99,147 $78,330 $67,660 City'sCoveredPayroll $114,721 $119,586 $141,943 City's Proportionate Share of the Net Pension Asset as a Percentage of its Covered Payroll 86.42% 65.50% 47.67% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 169.88% 157.67% 145.28% (1)Although this schedule is intended to show information for ten years,information prior to 2018 is not available.An additional column will be added each year. *Amounts presented for each year were determined as of the City's measurement date,which is the prior year end. See accompanying notes to the required supplementary information. - 96 - 2019 2018 0.03353000% OA2909100% $37,494 $39,602 $143,407 $119,146 2615% 33.24% 126.64% 137.28% - 97 - City of Brecksville,Ohio Reguired Supplementarylnformation Schedule of the Caty's Proportionate Share of the Net OPEB Asset/Liability Ohio Public Employees Retirement System-Traditional Plan Last Six Years(1)* 2022 2021 2020 City's Proportion of the Net OPEB Asset/Liability 0.04616100% 0.04450100% 0.04558800'% City's Proportionate Share of the Net OPEB Asset $1,445,833 $792,820 $0 City's Proportionate Share of the Net OPEB Liability $0 $0 $6,296,886 City's Covered Payroll $7,198,314 $6,730,182 $6,822,382 City's Proportionate Share of the Net OPEB Liability(Asset)as a Percentage ofits Covered Payroll -20.09% -11.78% 9230% Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 128.23% 115.57`% 47.80% (1)Although this schedule is intended to show information for ten years,information prior to 2017 is not available.An additional column will be added each year. *Amounts presented for each year were determined as of the City's measurement date,which is the prior year end. See accompanying notes to the required supplementary information. - 9g - 2019 2018 2017 0.04856300% 0.04966000% 0.04896000% $0 $0 $0 $6,331,468 $5,392,710 $4,945,126 $7,043,939 $7,034,267 $6,765,817 89.89% 76.66% 73.09°/a 4633% 54.14% 54.04°/a - 99 - City of Brecksville,Ohio Reguired Supplementary Information Schedule of the City's Proportionate Share of the Net Pension Liability Ohio Police and Fire Pension Fund Last Nine Years(1)* 2022 2021 2020 City's Proportion of the Net Pension Liability 0.15722790% 0.16189770% 0.16711770'% City's Proportionate Share of the Net Pension Liability $9,822,691 $11,036,710 $11,257,941 Ciry's Covered Payroll $4,123,657 $4,063,213 $4,076,638 City's Proportionate Share of the Net Pension Liabiliry as a Percentage of its Covered Payroll 238.20% 271.63% 276.16% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 75.03% 70.65% 69.89% (1)Although this schedule is intended to show information for ten years,information prior to 2014 is not available.An additional column will be added each year. *Amounts presentcd for each year were determincd as of the City's measurement date,which is the prior year end. See accompanying notes to the required supplementary information. - 1�0 - 2019 2018 2017 2016 2015 2014 0.17013500% 0.16985800% 0.16204100'% 0.16208000% 0.16886840% 0.16886840'% $13,887,511 $10,424,952 $10,263,514 $10,426,720 $8,748,087 $8,224,421 $3,955,281 $3,815,346 $3,583,217 $3,494,644 $3,429,025 $3,374,994 351.11% 273.24% 286.43°/a 29836% 255.12% 243.69% 63.07% 70.91% 6836°/a 66.77% 71.71% 73.00'% — 1�1 — City of Brecksville,Ohio Required Supplementary Information Schedule of�the City's Proportionate Share of the Net OPEB Liability Ohio Police and Fire Pension Fund Last Six Years(I)* 2022 2021 2020 City's Proportion of tbe Net OPEB Liability 0.15722790% 0.16189770% 016711770% Ciry's Proportionate Share of the Net OPEB Liabiliry $1,723,354 $1,715,333 $1,650,743 City's Covered Payroll $4,123,657 $4,063,213 $4,076,638 Ciry's Proportionate Share of the Net OPEB Liabiliry as a Percentage of its Covered Payroll 41.79% 42.22% 40.49% Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability 46.90% 45.40% 47.08°/o (1)Although this schedule is intended to show information for ten years,information prior to 2017 is not available.An additional column will be added each year. *Amounts presented for each year were determined as of the City's measurement date,which is the prior year end. See accompanying notes to the required supplementary information. - 1�2 - 2019 2018 2017 0.17013500% 0.16985800% 0.16204100% $1,549,340 $9,623,916 $7,691,722 $3,955,281 $3,815,346 $3,583,217 3917% 252.24% 214.66% 46.57% 14.13% 15.96% - 103 - City of Brecksville,Ohio Reguired Supplementary Information Schedule of the City'.s Contributions Ohio Public Employees Retirement System Last Ten Years 2022 2021 2020 2019 Net Pension Liability-Traditional Plan Contractually Required Contribution $1,026,064 $971,438 $906,412 $914,055 Contributions in Relation to the Contractually Required Contribution (1,026,064) (971,438) (906,412) (914,055) Contribution Deficiency(Excess) $0 $0 $0 $0 City Covered Payroll $7,329,029 $6,938,843 $6,474,371 $6,528,964 Pension Contributions as a Percentage of Covered Payroll 14.00% 14.00% 14.00% 14.00% Net Pension Liability-Combined Plan Contractually Required Contribution $16,777 $16,061 $16,742 $19,872 Contributions in Relarion to the Contractually Required Contribution (16,777) (16,061) (16,742) (19,872) Contribution Deficiency(Excess) $0 $0 $0 $0 CityCoveredPayroll $119,836 $114,721 $119,586 $141,943 Pension Contributions as a Percentage of Covered Payroll 14.00% 14.00% 14.00% 14.00% Net OPEB Liability(Asset)-OPEB Plan(2) Contractually Required Contribution $5,812 $5,790 $5,449 $6,059 Contributions in Relation to the Contractually Required Contribution (5,812) (5,790) (5,449) (6,059) Contribution Deficiency(Excess) $0 $0 $0 $0 City Covered Payroll(1) $7,594,165 $7,198,314 $6,730,182 $6,822,382 OPEB Contributions as a Percentage of Covered Payroll 0.08% 0.08% 0.08% 0.09% (1) The OPEB plan includes the members from the traditional plan, the combined plan and the member directed plan. The member directed pension plan is a defined contribution pension plan;therefore,the pension side is not included above. (2)Informarion prior to 2016 is not available. See accompanying notes to the required supplementary information. - 104 - 2018 2017 2016 2015 2014 2013 $943,440 $872,969 $788,375 $760,181 $768,114 $824,563 (943,440) (872,969) (788,375) (760,181) (768,114) (824,563) $0 $0 $0 $0 $0 $0 $6,738,857 $6,715,146 $6,569,792 $6,334,843 $6,400,950 $6,342,796 14.00% 13.00% 12.00% 12.00% 12.00% 13.00% $20,077 $15,489 $10,8]5 $10,591 $10,154 $10,492 (20,077) (15,489) (10,815) (10,591) (10,154) (10,492) $0 $0 $0 $0 $0 $0 $143,407 $119,146 $90,125 $88,258 $84,617 $80,708 14.00% 13.00% 12.00% 12.00% 12.00% 13.00% $6,467 $7,999 $4,236 �6,46�� ��,999� �4,2s6� �o �o $o $7,043,939 $7,034,267 $6,765,817 0.09% 0.11% 0.06% - 105 - City of Brecksville,Ohio Required Supplementary Information Schedule of the City's Contributions Ohio Police and Fire Pension Fund Last Ten Years 2022 2021 2020 2019 Net Pension Liability Contractually Required Contriburion $886,569 $847,923 $838,708 $839,065 Contributions in Relation to the Contractually Required Contribution (886,569) (847,923) (838,708) (839,065) Contribution Deficiency(Excess) $0 $0 $0 $0 City Covered Payroll(1) $4,295,031 $4,123,657 $4,063,213 $4,076,638 Pension Contributions as a Percentage of Covered Payroll 20.64% 20.56% 20.64% 20.58% Net OPEB Liability Contractually Required Contribution $21,475 $20,619 $20,316 $20,383 Contriburions in Relation to the Contractually Required Contribution (21,475) (20,619) (20,316) (20,383) Contribution Deficiency(Excess) $0 $0 $0 $0 OPEB Contributions as a Percentage of Covered Payroll 0.50°/o 0.50% 0.50% 0.50% Total Contributions as a Percentage of Covered Payroll 21.14% 21.06% 21.14% 21.08% (1)The Ciry's covered payroll is the same for pension and OPEB. See accompanying notes to the required supplementary information. - 106 - 2018 2017 2016 2015 2014 2013 $813,771 $784,801 $736,956 $722,599 $706,703 $589,056 (813,771) (784,801) (736,956) (722,599) (706,703) (589,056) $0 $0 $0 $0 $0 $0 $3,955,281 $3,815,346 $3,583,217 $3,494,644 $3,429,025 $3,374,994 20.57% 20.57% 20.57% 20.68% 20.61% 17.45% $19,777 $19,077 $17,916 $17,473 $17,145 $122,062 ��9,���� �19,0��� �»,916� �»,4�3� �1�,�4s� �lzz,odz� �o $o $o $o $o $o 0.50% 0.50% 0.50% 0.50% 0.50% 3.62% 21.07% 21.07% 21.07% 21.18% 21.11% 21.07% - 107 - City of Brecksville, Ohio Notes to the Required Supplementary Information For the Year Ended December 31, 2022 Changes in Assumptions—OPERS Pension—Traditional Plan Amounts reported beginning in 2022 incorporate changes in assumptions used by OPERS in calculating the total pension liability in the latest actuarial valuation. These new assumptions compared with those used in prior years are presented below: 2022 2019 2018 and 2017 2016 and prior Wage Inflation 2.75 p ercent 3.25 p ercent 3.25 p ercent 3.75 p ercent Future Salary Increases 2.75 to 10.75 percent 3.25 to 10.75 percent 3.25 to 10.75 percent 4.25 to 10.05 percent including including including including wage inflation wage inflation wage inflation wage inflation COLA or Ad Hoc COLA: Pre-January 7,2013 Retirees 3 p ercent,simp le 3 p ercent,simp le 3 p ercent,simp le 3 p ercent,simp le Post-January 7,2013 Retirees see below see below see below see below Investment Rate of Return 6.9 p ercent 7.2 p ercent 7.5 p ercent 8 p ercent Actuarial Cost Method Individual Individual Individual Individual Entry Age Entry Age Entry Age Entry Age The assumptions related to COLA or Ad Hoc COLA for Post-January 7, 2013,Retirees are as follows: COLA ar Ad Hoc COLA,Post-January 7,2013 Retirees: 2022 3.0 percent,simple through 2022 then 2.05 percent,simple 2021 0.5 percent,simple through 2021 then 215 percent,simple 2020 1.4percent,simple through 2020 then 215 percent,simple 2017 through 2019 3.0 percent,simple through 2018 then 215 percent,sirnple 2016 and prior 3.0 percent,simple through 2018 then 2.80percent,simple 5.50 to 5.00 percent Amounts reported beginning in 2022 use pre-retirement mortality rates based on 130 percent of the Pub-2010 General Employee Mortality tables(males and females)for State and Local Government divisions and 170 percent of the Pub-2010 Safety Employee Mortality tables(males and females)for the Public Safety and Law Enforcement divisions. Post-retirement mortality rates are based on 115 percent of the PubG-2010 Retiree Mortality Tables(males and females)for all divisions.Post-retirement mortality rates for disabled retirees are based on the PubNS-2010 Disabled Retiree Mortality Tables(males and females)for all divisions.For all the previously described tables, the base year is 2010 and mortality rates for a particular calendar year are determined by applying the MP-2020 mortality improvement scales(males and females)to all these tables. - 108 - City of Brecksville, Ohio Notes to the Required Supplementary Information For the Year Ended December 31, 2022 Amounts reported beginning in 2017 use pre-retirement mortality rates are based on the RP-2014 Employees mortality table for males and females,adjusted far mortality improvement back to the observation period base year of 2006. The base year for males and females was then established to be 2015 and 2010,respectively. Post-retirement mortality rates are based on the RP-2014 Healthy Annuitant mortality table for males and females,adjusted for mortality improvement back to the observation period base year of 2006.The base year for males and females was then established to be 2015 and 2010,respectively.Post-retirement mortality rates for disabled retirees are based on the RP-2014 Disabled mortality table for males and females, adjusted for mortality improvement back to the observation period base year of 2006.The base year for males and females was then established to be 2015 and 2010, respectively. Mortality rates for a particular calendar year are determined by applying the MP-2015 mortality improvement scale to all of the above described tables. Amounts reported for 2016 and prior use mortality rates based on the RP-2000 Mortality Table projected 20 years using Projection Scale AA.For males, 105 percent of the combined healthy male mortality rates were used. For females, 100 percent of the combined healthy female mortality rates were used.The mortality rates used in evaluating disability allowances were based on the RP-2000 mortality table with no projections. For males 120 percent of the disabled female mortality rates were used set forward two years. For females, 100 percent of the disabled female mortality rates were used. Changes in Assumptions—OPERS Pension— Combined Plan 2022 2019 2018 Wage Inflation 2.75 percent 3.25 percent 3.25 percent Future Salary Increases 2.75 to 8.25 percent 3.25 to 8.25 percent 3.25 to 8.25 percent including including including wage inflation wage inflation wage inflation COLA or Ad Hoc COLA: Pre-January 7,2013 Retirees 3 percent, simple 3 percent, simple 3 percent, simple Post-January 7, 2013 Retirees see below see below see below Investment Rate of Return 6.9 percent 7.2 percent 7.5 percent Actuarial Cost Method Individual Individual Individual Entry Age Entry Age Entry Age For 2022, 2021 and 2020, the Combined Plan had the same change in COLA or Ad Hoc COLA for Post- January 2,2013, retirees as the Traditional Plan. - 109 - City of Brecksville, Ohio Notes to the Required Supplementary Information For the Year Ended December 31, 2022 Changes in Assumptions—OP&F Pension Amounts reported beginning in 2018 incorporate changes in assumptions used by OP&F in calculating the total pension liability in the latest actuarial valuation. These new assumptions compared with those used in 2017 and prior are presented below: Beginning in 2018 2017 and Prior Actuarial Cost Method Entry Age Normal Entry Age Normal Investment Rate of Return 8.0 percent 8.25 percent Projected Salary Increases 3.75 percentto ]0.5 percent 4.25 percentto 11 percent Payroll Growth 3.25 percent per annum, Inflation rate of 3.25 percent plus compounded annually,consisting of productivity increase rate of 0.5 Inflation rate of 2.75 percent plus percent productivity increase rate of 0.5 percent Cost of Living Adjustments 2.2 percent simple 3.00 percent simple;2.6 percent simple far increases based on the lesser of the far increases based on the lesser of the increase in CPI and 3 percent increase in CPI and 3 percent For 2022,the OP&F Board adopted a change in the investment rate of return,changing it from 8 percent for 2018 through 2021 to 7.5 percent for 2022. Amounts reported beginning in 2018 use valuation, mortality for non-disabled participants is based on the RP-2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006,adjusted according to the rates in the following table, and projected with the Buck/Conduent Modi�ed 2016 Improvement Scale. Rates for surviving beneficiaries are adjusted by 120 percent. Age Police Fire 67 or les s 77 % 68 % 68-77 105 87 78 and up 115 120 Amounts reported beginning in 2018 use valuation, mortality for disabled retirees is based on the RP-2014 Disabled Mortality Tables rolled back to 2006, adjusted according to the rates in the following table, and projected with the Buck/Conduent Modified 2016 Improvement Scale. Age Police Fire 59 or less 35 % 35 % 60-69 60 45 70-79 75 70 80 and up 100 90 Amounts reported for 2017 and prior use valuation, rates of death were based on the RP2000 Combined Table,age-adjusted as follows.For active members,set back six years.For disability retirements,set forward five years for police and three years for firefighters.For service retirements,set back zero years for police and two years for firefighters.For beneficiaries,set back zero years.The rates are applied on a fully generational basis, with a base year of 2009,using mortality improvement Scale AA. - 110 - City of Brecksville, Ohio Notes to the Required Supplementary Information For the Year Ended December 31, 2022 Changes in Assumptions-OPERS OPEB Wage Inflation: 2022 2.75 percent 2021 and prior 3.25 percent Projected Salary Increses (including wage inflation): 2022 2.75 to 10.75 percent 2021 and prior 3.25 to 10.75 percent Investment Return Assumption: Beginning in 2019 6.00 percent 2018 6.50 percent Municipal Bond Rate: 2022 1.84 percent 2021 2.00 percent 2020 2.75 percent 2019 3.71 percent 2018 331 percent Single Discount Rate: 2022 6.00 percent 2021 6.00 percent 2020 3.16 percent 2019 3.96 percent 2018 3.85 percent Health Care Cost Trend Rate: 2022 5.5 percent,initial 3.5 percent,ultimate in 2034 2021 8.5 percent,initial 3.5 percent,ultimate in 2035 2020 10.5 percent,initial 3.5 percent,ultimate in 2030 2019 10.0 percent,initial 3.25 percent,ultimate in 2029 2018 7.5 percent,initial 3.25 percent,ultimate in 2028 Changes in Assumptions-OP&F OPEB Blended Discount Rate: 2022 2.84 percent 2021 2.96 percent 2020 3.56 percent 2019 4.66 percent 2018 324 percent For 2022,the OP&F Board adopted a change in the investment rate of return,changing it from 8 percent for 2018 through 2021 to 7.5 percent for 2022. - 111 - City of Brecksville, Ohio Notes to the Required Supplementary Information For the Year Ended December 31, 2022 Changes in Benefit Terms—OPERS OPEB On January 15, 2020, the Board approved several changes to the health care plan offered to Medicare and non-Medicare retirees in efforts to decrease costs and increase the solvency of the health care plan. These changes are effective January 1, 2022, and include changes to base allowances and eligibility far Medicare retirees, as well as replacing OPERS-sponsored medical plans for non-Medicare retirees with monthly allowances, similar to the program for Medicare retirees. These changes are reflected in 2021. Changes in Benefit Terms—OP&F OPEB Far 2019, OP&F recognized a change in benefit terms. Under this new model, OP&F provides eligible retirees with a fixed stipend earmarked to pay for health care and Medicare Part B reimbursements. This new model replaced the self-insured health care plan used in prior years. - 112 - 4 ` • � � .', ry� �. �,�y� � t �''��'' "" �'ti��' ' 's'� �, a :� '`��' i:t � ti x ` ; � x � "�'.��,+' ��? � �� �~ � '�'� . ,:��Y�`��" �,�,��� �.-� _.§� _�f ;�• a"�: <a`� v�: �i..���,t �: . � 3�'" ' � - . �� t:.;� ' � ��':.� :����k` �s'���.'. :'.... � v t r. .yf"' t. ;[', . . i;..,r �`. 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' y, ��;;� �� � S 'V� _ � y�+e��.�, g }�y..Y�� .`�Q �-1'..�� L . � . . .. ; i� �j...�Y�, '3 .�,x �I� 1 , „ .��I ��� . �.gy�ry;� �i.:� {� u ����.+�� _�: �I I '�' 4 S �gJ 1Y/'' , ��' �I; ��� �,� -� � �� 4 �� .,��i a ' ,�. ��� ,���,a�r � �, � � �, __ �/. �� ii � ' i.�� . ����11 � �i��� � � �' � .� � '. .� , >, %', j�� � w��T;e4 j ;y��� � '�°',� o< �i � �� r�+r .�� �"�- ��#,.:.,- �`1�'. 1� � � ��si��'� JP ��' � 1 0 I' � � ��� �v � .` ���� �� � I 1 1�� � �'. - -�. . � � -. ;'i . �y' �i` y�,'111�ri` ..�4 � �Q• `y� +� ����; �. .. �: li1 �S'"9'f ` \��. ,ly'7�x.%� o �\��..�`T`,q'��A; '4 ��i�Y' h i;;ap._.:, ..� � -. 5.� s��,,� �\ s�- �.� \ `�rS'�T:�� y� .�, �1-��-..•:. _ ; , a;vt�-- '� - y�i �y � .; . � �f��, ��� + �,� �,�.�As'�. _,i` ` ,_�� �-�'��T�-.'�, ' .z� i —�---1 _ '�~� s"S '�` �"�� :��rr�: y t �y2 1! � <::L- c� ��j'aq y��-`���°�'c�,•♦. \ . '.� ��_ *s���`d �yE �-1��'*` �.�� _ , .,�-s F.�,v� �` .:�i �/ � _. � k.�§. wG `�"^� ��,. '9's�b ` 7 i`�� / . '� '^�'�� � c, 4 ,� �,�' ..� , .. y.,.� _ „��''; ��i�:�'�t . ;� � .., �`�,a� � ..Y� �� �. . : . �9;'; .. . . ,,. ��^... r,��_` - �(�,�y, N ��,.- _ _ � t �~'.. �n,�s.� _�t / `� 'N y..��. �.. . i.' � •��, ��, �� �� .« f� � t �'�i�. '�,. . . �.'d'�� Combining Statements - Nonmajor Governmental Funds Nonmajor Special Revenue Funds To account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specific purposes other than debt service or capital projects. Motor Vehicle License Tax Fund This fund accounts for and reports the City's share of additional motor vehicle registration fees. Expenditures are restricted by State law for the maintenance and repair of streets and bridges within the City. Street Repair and Maintenance Fund This fund accounts for and reports 92.5 percent of the State gasoline tax and motor vehicle registration fees restricted for maintenance and repair of streets within the City. State Highway Fund This fund accounts for and reports 7.5 percent of the State gasoline tax and motor vehicle registration fees restricted for maintenance and repair of State highways within the City. Co`rcmuniry Center Fund This fund accounts for and reports membership fees,program fees,and general fund subsidies committed to the operations of the Community Center. Iload Maintenance Fund This fund accounts for and reports revenues received from the 1 mill Charter Levy. These monies are restricted for the maintenance, repair, reconstruction and improvement of roads within the City. Federal Equitable Sharing Fund This fund accounts and reports federal forfeiture monies returned to the City restricted for certain law enforcement purposes. Enforcement and Education Fund This fund accounts far and reports fines and grants restricted to educating the public about the dangers of and enforcing the laws against operating a motor vehicle while under the influence of alcohol and to reinforce the "Say No to Drugs"message. This fund also accounts for and reports contributions and donations and a portion of law enforcement forfeitures committed for the DARE program. Court Computerization Fund This fund accounts for and reports court fees and fines restricted for the purchase and maintenance of computers for the Mayor's court. Natureworks Grants Fund This fund accounts for and reports grant monies and investment earnings and other interest restricted for the purpose of adding recreational facilities. Recycling Demo Fund This fund accounts for and reports grant monies received from the Ohio Department of Natural Resources plus City matching funds. Expenditures are restricted by the rules set by the Ohio Department of Natural Resources Litter Prevention and Recycling Grant agreement. Tree Planting Fund This fund accounts for and reports monies collected,which are restricted to the planting of trees within the City's right-of-way. Law Enforcement Fund This fund accounts for and reports restricted monies received from the sale or disposition of seized contraband. (continued) - 114 - Combining Statements-Nonmajor Governmental Funds(continued) Nonmajor Special Revenue Funds(continued) Law Enforcement Mandatory Drug Fund This fund accounts for and reports monies received from drug fines and forfeited bonds restricted far drug investigations. Police Pension Pund This fund accounts for and reports amounts paid for police department employees,which are restricted to the State administered disability and pension fund. Peace Officer Training Fu�d This fund accounts for and reports the collection and disbursement of certain grant funds received from the State of Ohio restricted to certain law enforcement trainings. Local Fiscal Recovery Fund This fund accounts for and reports the Local Fiscal Recovery funds received through the American Rescue Plan Act of 2021 and expenses restricted to respond to the impact of the COVID-19 disease in accordance with said act. OneOhio Opioid Settlement Fund This fund accounts for and reports the Opioid settlement distributions received through the OneOhio funds of the National Opioid Settlement agreement and expenses restricted to assist with abating the opioid epidemic. Nonmajor Debt Service Funds Debt service funds are used to account for and report financial resources that are restricted, committed or assigned to expenditure for principal and interest. Special Assessment Bond Retirement Fund This fund is used to account for and report the collection of special assessments levied against benefited properties restricted for the payment of special assessment related costs. Debt Urban Redevelopment Tax Increinent Equivalents Fund This fund is used to account for and report the collection of payments in lieu of taxes levied against what is known as the Valor Acres development restricted for the payment of tax increment financing revenue bond related costs. The fund did not have any budgetary activity in 2022; therefore, budgetary information is not provided. Nonmajor Capital Projects Funds Capital projects funds are used to account and report financial resources that are restricted, committed or assigned to expenditure for capital outlays including the acquisition or construction of major capital facilities and other capital assets, other than those financed by proprietary funds or for assets that will be held in trust. Issue II Fund This fund accounts for and reports grant monies received from the Ohio Public Works Commission plus City matching funds. Expenditures are restricted to specific projects within the City. Recreation Expansion Fund This fund accounts for and reports 25 percent of building permit revenues assigned for the purchase of equipment and for capital improvements for recreation. (continued) - 115 - Combining Statements-Nonmajor Governmental Funds(continued) Nonmajor Capital Projects Funds (continued) Public Utility Improvement Fund This fund accounts for and reports sanitary sewer tap-in-fees and fees for converting from septic tank to sanitary sewer assigned to costs to repair,construct,and reline any public utility line within the Ciry.This fund also accounts for and reports a portion of water connection fees committed to pay down long-term obligations. Fire Ambulance Capital Fund This fund accounts for and reports portions of charges for services for ambulance operations provided by the fire department. Expenditures from this fund are committed to the acquisition of fire department equipment. Police Station Building Fund This fund accounts for and reports monies assigned for the financing, construction, and related costs of improvements to the police station building. Recreation Facilities Expansion Fund This fund accounts for and reports income tax and other monies determined as necessary assigned to purpose of acquiring, constructing, or improving recreation facilities and any other appurtenances thereto. - 116 - City of Brecksville,Ohio Combining Balance Sheet Nonmajor Governmental Funds December 31, 2022 Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Assets Equity in Pooled Cash and Cash Equivalents $2,841,291 $13,979 $2,819,747 $5,675,017 Cash and Cash Equivalents: In Segregated Accounts 2,000 0 0 2,000 With Escrow Agent 0 1,695,002 0 1,695,002 With Fiscal Agent 0 0 498,523 498,523 Accrued Interest Receivable 1,259 109 1,192 2,560 Materials and Supplies Inventory 69,655 0 0 69,655 Accounts Receivable 5 0 32,000 32,005 Intergovernmental Receivable 579,498 0 101,026 680,524 Property Taxes Receivable 916,886 0 0 916,886 Special Assessment Receivable 0 673,528 0 673,528 Prepaid Items 2,778 0 0 2,778 Restricted Assets: Equity in Pooled Cash and Cash Equivalents 2,346 0 0 2,346 Total Assets $4,4]5,718 $2,382,618 $3,452,488 $10,250,824 Liabitities Accounts Payable $35,774 $0 $11,017 $46,791 Contracts Payable 53,796 0 80,751 134,547 Retainage Payable 0 0 304,710 304,710 Accrued Wages 49,731 0 0 49,731 Interfund Payable 0 40,000 0 40,000 Intergovernmental Payable 9,028 0 0 9,028 Deposits Held Payable from Restricted Assets 2,346 0 0 2,346 TotalLiabilities 150,675 40,000 396,478 587,153 Deferred Inflows of Resources Property Taxes 885,719 0 0 885,719 Unavailable Revenue 460,493 673,528 98,957 1,232,978 TotalDeferredlnflowsofResources 1,346,212 673,528 98,957 2,118,697 Fund Balances Nonspendable 72,433 0 0 72,433 Restricted 2,104,976 1,695,1ll 233,597 4,033,684 Committed 741,422 0 1,479,426 2,220,848 Assigned 0 0 1,244,030 1,244,030 Unassigned(Deficit) 0 (26,021) 0 (26,021) Total Fund Balances 2,918,831 1,669,090 2,957,053 7,544,974 Total Liabilities,Deferred Inflows of Resources, and Fund Balances $4,415,718 $2,382,618 $3,452,488 $10,250,824 - 117 - City of Brecksville,Ohio Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Governmental Funds For the Year Ended December 31,2022 Nonmajor Nonmajor Nonmajor Total Special Debt Capital Nonmajor Revenue Service Projects Governmental Funds Funds Funds Funds Revenues Property Taxes $895,691 $0 $0 $895,691 Charges for Services 1,234,966 0 382,224 1,617,190 Licenses and Permits 41,936 0 132,390 174,326 Fines,Forfeitures,and Settlements 8,035 0 0 8,035 Intergovernmental 2,535,018 0 29,637 2,564,655 Special Assessments 0 231,251 0 231,251 Investment Earnings and Other Interest (52,820) 15,368 (55,122) (92,574) Contriburions and Donations 20,555 0 20,000 40,555 Rentals 59,181 0 0 59,181 Miscellaneous 9,122 0 0 9,122 Total Revenues 4,751,684 246,619 509,129 5,507,432 Expenditures Current: General Government: Legislative and Execurive 0 9,951 0 9,951 Judicial System 5,133 0 0 5,133 Public Safety: Police 1,611,458 0 0 1,611,458 Street Construcrion,Maintenance,and Repair 1,856,361 0 0 1,856,361 Housing and Community Development 27,913 0 0 27,913 Basic Urility Services 5,766 0 0 5,766 Recreational Activities 2,476,026 0 0 2,476,026 CapitalOutlay 0 0 2,020,437 2,020,437 Debt Service: Principal Retirement 0 260,000 31,155 291,155 Interest 0 312,747 0 312,747 Total Expenditures 5,982,657 582,698 2,051,592 8,616,947 ExcessofRevenuesUnderExpenditures (1,230,973) (336,079) (1,542,463) (3,109,515) Other Financing Sources(Uses) Sale of Capital Assets 1,227 0 800 2,027 Tax Increment Financing Revenue Bonds Issued 0 1,970,811 0 1,970,811 Transfers In 1,170,000 0 331,157 1,501,157 Transfers Out 0 0 (713,797) (713,797) TotalOtherFinancingSources(Uses) 1,171,227 1,970,8ll (381,840) 2,760,198 Net Change in Fund Balances (59,746) 1,634,732 (1,924,303) (349,317) Fund Balances Beginning of Year 2,978,577 34,358 4,881,356 7,894,291 Fund Balances End of Year $2,918,831 $1,669,090 $2,957,053 $7,544,974 - 11g - City of Brecksville,Ohio Combining Balance Sheet Nonmajor Special Revenue Funds December 31,2022 Motor Street Vehicle Repair and State Community Road License Tax Maintenance Highway Center Maintenance Assets Equiry in Pooled Cash and Cash Equivalents $98,178 $552,344 $248,312 $832,072 $315,927 Cash and Cash Equivalents: In Segregated Accounts 0 0 0 2,000 0 Accrued Interest Receivable 54 303 136 421 173 Materials and Supplies Inventory 0 69,655 0 0 0 Accounts Receivable 0 0 0 5 0 Intergovernmental Receivable 18,414 399,695 32,407 73,500 42,678 Property Taxes Receivable 0 0 0 0 705,303 Prepaid Items 0 0 0 2,778 0 Restricted Assets: Equiry in Pooled Cash and Cash Equivalents 0 0 0 2,346 0 TotalAssets $ll6,646 $1,021,997 $280,855 $913,122 $1,064,081 Liabilities Accounts Payable $0 $0 $0 $35,774 $0 Contracts Payable 0 0 49,296 4,500 0 Accrued Wages 0 0 0 49,731 0 Intergovernmental Payable 0 0 0 9,028 0 Deposits Held Payable from Restricted Assets 0 0 0 2,346 0 Total Liabilities 0 0 49,296 101,379 0 Deferred inflows of Resources Property Taxes 0 0 0 0 681,322 Unavailable Revenue 12,276 266,463 21,605 73,500 66,659 Total Deferred Inflows of Resources 12,276 266,463 21,605 73,500 747,981 Fund Balances Nonspendable 0 69,655 0 2,778 0 Restricted 104,370 685,879 209,954 0 316,100 Committed 0 0 0 735,465 0 Total Fund Balances 104,370 755,534 209,954 738,243 316,100 Total Liabilities,Deferred Inflows of Resources,andFundBalances $116,646 $1,021,997 $280,855 $913,122 $1,064,081 (continued) - 119 - City of Brecksville,Ohio Combining Balance Sheet Nonmajor Special Revenue Funds(continued) December 31,2022 Federal Equitable Enforcement Court Natureworks Recycling Sharing and Education Computerization Grants Demo Assets Equiry in Pooled Cash and Cash Equivalents $18,311 $30,327 $146,779 $950 $5,979 Cash and Cash Equivalents: In Segregated Accounts 0 0 0 0 0 Accrued Interest Receivable 10 16 81 0 3 Materials and Supplies Inventory 0 0 0 0 0 Accounts Receivable 0 0 0 0 0 Intergovernmental Receivable 0 0 0 0 0 Property Taxes Receivable 0 0 0 0 0 Prepaid Items 0 0 0 0 0 Restricted Assets: Equity in Pooled Cash and Cash Equivalents 0 0 0 0 0 TotalAssets $18,321 $30,343 $146,860 $950 $5,982 Liabilities Accounts Payable $0 $0 $0 $0 $0 Contracts Payable 0 0 0 0 0 Accrued Wages 0 0 0 0 0 Intergovernmental Payable 0 0 0 0 0 Deposits Held Payable from Restricted Assets 0 0 0 0 0 Total Liabilities 0 0 0 0 0 Deferred inflows of Resources Property Taxes 0 0 0 0 0 Unavailable Revenue 0 0 0 0 0 Total Deferred Inflows of Resources 0 0 0 0 0 Fund Balances Nonspendable 0 0 0 0 0 Restricted 18,321 24,386 146,860 950 5,982 Committed 0 5,957 0 0 0 Total Fund Balances 18,321 30,343 146,860 950 5,982 Total Liabilities,Deferred Inflows of Resources,andFundBalances $18,321 $30,343 $146,860 $950 $5,982 - 120 - Law Total Enforcement Peace OneOhio Nonmajor Law Mandatory Police Officer Opioid Special Revenue Tree Planting Enforcement Drug Pension Training Settlement Funds $104,291 $71,725 $41,898 $364,792 $7,323 $2,083 $2,841,291 0 0 0 0 0 0 2,000 0 39 23 0 0 0 1,259 0 0 0 0 0 0 69,655 0 0 0 0 0 0 5 0 0 0 12,804 0 0 579,498 0 0 0 211,583 0 0 916,886 0 0 0 0 0 0 2,778 0 0 0 0 0 0 2,346 $104,291 $71,764 $41,921 $589,179 $7,323 $2,083 $4,415,718 $0 $0 $0 $0 $0 $0 $35,774 0 0 0 0 0 0 53,796 0 0 0 0 0 0 49,731 0 0 0 0 0 0 9,028 0 0 0 0 0 0 2,346 0 0 0 0 0 0 150,675 0 0 0 204,397 0 0 885,719 0 0 0 19,990 0 0 460,493 0 0 0 224,387 0 0 1,346,212 0 0 0 0 0 0 72,433 104,291 71,764 41,921 364,792 7,323 2,083 2,104,976 0 0 0 0 0 0 741,422 104,291 71,764 41,921 364,792 7,323 2,083 2,918,831 $104,291 $71,764 $41,921 $589,179 $7,323 $2,083 $4,415,718 - I21 - City of Brecksville,Ohio Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds For the Year Ended December 31,2022 Motor Street Federal Vehicle Repair and State Community Road Equitable License Tax Maintenance Highway Center Maintenance Sharing Revenues Property Taxes $0 $0 $0 $0 $688,992 $0 Charges for Services 0 0 0 1,234,966 0 0 Licenses and Permits 0 0 0 12,236 0 0 Fines,Forfeitures,and Settlements 0 0 0 0 0 0 Intergovernmental 38,499 869,137 67,888 12,000 85,383 0 Investment Earnings and Other Interest (2,396) (12,758) (6,ll2) (17,396) (6,727) (429) Contributions and Donations 0 0 0 20,555 0 0 Rentals 0 0 0 59,181 0 0 Miscellaneous 0 583 0 8,539 0 0 TotalRevenues 36,103 856,962 61,776 1,330,081 767,648 (429) E�enditures Current: General Government: Judicial System 0 0 0 0 0 0 Public Safety: Police 0 0 0 0 0 0 Street Construction,Maintenance,and Repair 11,450 1,029,680 49,296 0 765,935 0 Housing and Community Development 0 0 0 0 0 0 Basic Utility Services 0 0 0 0 0 0 Recreational Activities 0 0 0 2,476,026 0 0 Total�xpenditures 11,450 1,029,680 49,296 2,476,026 765,935 0 Excess ofRevenues Over(Under)Expenditures 24,653 (172,718) 12,480 (1,145,945) 1,713 (429) Other Financing Sources Sale of Capital Assets 0 0 0 1,227 0 0 Transfers In 0 0 0 1,170,000 0 0 Total Other Financing Sources 0 0 0 1,171,227 0 0 Net Change in Fund Balances 24,653 (172,718) 12,480 25,282 1,713 (429) Fund Balances Beginning of Year 79,717 928,252 197,474 712,961 314,387 18,750 FundBalancesEndofYear $104,370 $755,534 $209,954 $738,243 $316,100 $18,321 - I22 - Law Enforcement Enforcement Court Natureworks Recycling Law Mandatory Police and Education Computerization Grants Demo Tree Planting Enforcement Drug Pension $0 $0 $0 $0 $0 $0 $0 $206,699 0 0 0 0 0 0 0 0 0 0 0 0 29,700 0 0 0 200 5,640 0 0 0 112 0 0 0 0 0 5,773 0 0 0 25,615 (711) (3,463) 0 (175) 0 (1,671) (982) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (511) 2,177 0 5,598 29,700 (1,559) (982) 232,314 0 5,133 0 0 0 0 0 0 0 0 0 0 0 12,800 0 165,015 0 0 0 0 0 0 0 0 0 0 0 0 27,913 0 0 0 0 0 0 5,766 0 0 0 0 0 0 0 0 0 0 0 0 0 5,133 0 5,766 27,913 12,800 0 165,015 (511) (2,956) 0 (168) 1,787 (14,359) (982) 67,299 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (511) (2,956) 0 (168) 1,787 (14,359) (982) 67,299 30,854 149,816 950 6,150 102,504 86,123 42,903 297,493 $30,343 $146,860 $950 $5,982 $104,291 $71,764 $41,921 $364,792 (continued) - 123 - City of Brecksville,Ohio Combining Statement of Revenues,Expenditures and Changes in Fund Balances Nonmajor Special Revenue Funds(conrinued) For the Year Ended December 31,2022 Total Peace Local OneOhio Nonmajor Officer Fiscal Opioid Special Revenue Training Recovery Settlement Funds Revenues Property Taxes $0 $0 $0 $895,691 Charges for Services 0 0 0 1,234,966 Licenses and Permits 0 0 0 41,936 Fines,Forfeitures,and Settlements 0 0 2,083 8,035 Intergovernmental 0 1,430,723 0 2,535,018 Investment Earnings and Other Interest 0 0 0 (52,820) Contributions and Donations 0 0 0 20,555 Rentals 0 0 0 59,181 Miscellaneous 0 0 0 9,122 Total Revenues 0 1,430,723 2,083 4,751,684 Expenditures Current: General Government: Judicial System 0 0 0 5,133 Public Safety: Police 2,920 1,430,723 0 1,611,458 Street Construction,Maintenance,and Repair 0 0 0 1,856,361 Housing and Community Development 0 0 0 27,913 Basic Utility Services 0 0 0 5,766 Recreational Activities 0 0 0 2,476,026 Total Expenditures 2,920 1,430,723 0 5,982,657 Excess of'Revenues Over(Under)ExpendiCures (2,920) 0 2,083 (1,230,973) Other Financing Sources Sale of Capital Assets 0 0 0 1,227 Transfers In 0 0 0 1,170,000 Total Other Financing Sources 0 0 0 1,171,227 Net Change in Fund Balances (2,920) 0 2,083 (59,746) Fund Balances Beginning of Year 10,243 0 0 2,978,577 Fund Balances End of Year $7,323 $0 $2,083 $2,918,831 - 124 - City of Brecksville, Ohio Combining Balance Sheet Nonmajor Debt Service Funds December 31, 2022 Special Debt Urban Total Assessment Redevelopment Nonmajor Bond Tax Increment Debt Seroice Retirement Equivalents Funds Assets Equity in Pooled Cash and Cash Equivalents $13,979 $0 $13,979 Cash and Cash Equivalents: With Escrow Agent 0 1,695,002 1,695,002 Accrued Interest Receivable 0 109 109 Special Assessments Receivable 673,528 0 673,528 TotalAssets $687,507 $1,695,111 $2,382,618 Liabilities Interfund Payable $40,000 $0 $40,000 Deferred Inflows of Resources Unavailable Revenue 673,528 0 673,528 Fund Balances Restricted 0 1,695,111 1,695,111 Unassigned(Deficit) (26,021) 0 (26,021) Total Fund Balances (Deficit) (26,021) 1,695,111 1,669,090 Total Liabilities, Deferred Inflows of Resources and Fund Balances $687,507 $1,695,111 $2,382,618 - 125 - City of Brecksville, Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Debt Service Funds For the Year Ended December 31, 2022 Special Debt Urban Total Assessment Redevelopment Nonmajor Bond Tax Increment Debt Seroice Retirement Equivalents Funds Revenues Special Assessments $231,251 $0 $231,251 Investment Earnings and Other Interest 0 15,368 15,368 Total Revenues 231,251 15,368 246,619 Expenditures General Government: Legislative and Executive 2,451 7,500 9,951 Debt Service: Principal Retirement 260,000 0 260,000 Interest 29,179 283,568 312,747 Total Expenditures 291,630 291,068 582,698 Excess of Revenues Under Expenditures (60,379) (275,700) (336,079) Other Financing Sources Tax Increment Financing Revenue Bonds Issued 0 1,970,811 1,970,811 Net Change in Fund Balances (60,379) 1,695,111 1,634,732 Fund Balances Beginning of Year 34,358 0 34,358 Fund Balances (Defzcit)End of Year ($26,021) $1,695,111 $1,669,090 - 126 - City of Brecksville,Ohio Combining Balance Sheet Nonmajor Capital Projects Funds December 31, 2022 Fire Recreation Public Utility Ambulance Issue II Expansion Improvement Capital Assets Equity in Pooled Cash and Cash Equivalents $233,469 $105,302 $940,032 $1,252,198 Cash and Cash Equivalents: With Fiscal Agents 0 0 0 0 Accrued Interest Receivable 128 58 160 688 Accounts Receivable 0 0 0 32,000 Intergovernmental Receivable 0 0 0 101,026 TotalAssets $233,597 $105,360 $940,192 $1,385,912 Liabilities Accounts Payable $0 $7,500 $0 $0 Contracts Payable 0 0 0 2,844 Retainage Payable 0 0 0 0 Total Liabilities 0 7,500 0 2,844 Deferred Inflows of Resources Unavailable Revenue 0 0 0 98,957 Fund Balances Restricted 233,597 0 0 0 Committed 0 0 195,315 1,284,1 ll Assigned 0 97,860 744,877 0 TotalFundBalances 233,597 97,860 940,192 1,284,111 Total Liabilities, Deferred Inflows of Resources, andFundBalances $233,597 $105,360 $940,192 $1,385,912 - 127 - Total Recreation Nonmajor Police Station Facilities Capital Projects Building Expansion Funds $194 $288,552 $2,819,747 0 498,523 498,523 0 158 1,192 0 0 32,000 0 0 101,026 $194 $787,233 $3,452,488 $0 $3,517 $11,017 0 77,907 80,751 0 304,710 304,710 0 386,134 396,478 0 0 98,957 0 0 233,597 0 0 1,479,426 194 401,099 1,244,030 194 401,099 2,957,053 $194 $787,233 $3,452,488 - 128 - City of Brecksville,Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds For the Year Ended December 31, 2022 Fire Recreation Public Utility Ambulance Issue II Expansion Improvement Capital Revenues Charges for Services $0 $0 $0 $382,224 Licenses andPermits 0 70,174 62,216 0 Intergovernmental 0 0 0 0 Investment Earnings and Other Interest (5,350) (2,563) (7,020) (30,885) Contributions and Donations 0 0 0 0 TotalRevenues (5,350) 67,611 55,196 351,339 Expenditures CapitalOutlay 0 80,363 7,275 38,255 Debt Service: Principal Retirement 31,155 0 0 0 TotalExpenditures 31,155 80,363 7,275 38,255 Excess ofRevenues Over(Under)Expenditures (36,505) (12,752) 47,921 313,084 Other Financing Sources(Uses) Sale of Capital Assets 0 0 0 0 Transfers In 31,157 0 0 0 Transfers Out 0 0 0 0 Total Other Financing Sources(Uses) 31,157 0 0 0 Net Change in Fund Balances (5,348) (12,752) 47,921 313,084 Fund Balances Beginning of Year 238,945 110,612 892,271 971,027 Fund Balances End of Year $233,597 $97,860 $940,192 $1,284,111 (continued) - 129 - City of Brecksville,Ohio Combining Statement of Revenues, Expenditures and Changes in Fund Balances Nonmajor Capital Projects Funds (continued) For the Year Ended December 31, 2022 Total Recreation Nonmajor Police Station Facilities Capital Projects Building Expansion Funds Revenues Charges for Services $0 $0 $382,224 Licenses and Permits 0 0 132,390 Intergovernmental 0 29,637 29,637 Investment Earnings and Other Interest 114 (9,418) (55,122) Contributions and Donations 0 20,000 20,000 Total Revenues 114 40,219 509,129 Expenditures CapitalOutlay 0 1,894,544 2,020,437 Debt Service: Principal Retirement 0 0 31,155 Total Expenditures 0 1,894,544 2,051,592 Excess ofRevenues Over(Under)Expenditures 114 (1,854,325) (1,542,463) Other Financing Sources(Uses) Sale of Capital Assets 0 800 800 Transfers In 0 300,000 331,157 Transfers Out (36,108) (677,689) (713,797) Total Other Financing Sources(Uses) (36,108) (376,889) (381,840) Net Change in Fund Balances (35,994) (2,231,214) (1,924,303) Fund Balances Beginning of Year 36,188 2,632,313 4,881,356 Fund Balances End of Year $194 $401,099 $2,957,053 - 130 - Individual Fund Schedules of Revenues, Expenditures/Expenses and Changes in Fund Balance/Fund Equity- Budget (Non-GAAP Basis) and Actual - 131 - City of Brecksville,Ohio Schedule of�Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual GeneralFund For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Property Taxes $2,387,046 $2,387,046 $2,418,360 $31,314 Municipal Income Taxes 15,964,996 15,964,996 17,858,464 1,893,468 Charges for Services 104,100 104,100 143,386 39,286 Licenses and Permits 1,147,500 1,150,768 1,032,765 (118,003) Fines,Forfeitures,and Settlements 141,050 141,050 173,247 32,197 Intergovernmental 554,847 682,199 678,868 (3,331) Investment Earnings and Other Interest 150,000 150,000 144,580 (5,420) Contributions and Donations 28,100 2,924,668 2,936,612 11,944 Rentals 163,855 163,855 177,690 13,835 Miscellaneous 274,397 1,309,588 630,888 (678,700) Total Revenues 20,915,891 24,978,270 26,194,860 1,216,590 Expenditures Current: General Government Legislative and Executive: Mayor: Salaries and Wages 166,825 198,626 198,626 0 Fringe Benefits 68,573 75,435 70,189 5,246 Materials and Supplies 1,600 1,600 300 1,300 Purchased Services 1,300 1,300 724 576 Total Mayor 238,298 276,961 269,839 7,122 Finance Director: Salaries and Wages 351,426 351,426 347,068 4,358 Fringe Benefits 143,273 143,273 132,252 11,021 Materials and Supplies 3,339 3,339 2,152 1,187 Purchased Services 5,100 5,100 3,436 1,664 Total Finance Director 503,138 503,138 484,908 18,230 Purchasing Department: Salaries and Wages 171,136 171,136 156,163 14,973 Fringe Benefits 46,988 46,988 41,783 5,205 Materials and Supplies 3,649 3,649 1,880 1,769 Purchased Services 1,724 1,724 785 939 Total Purchasing Department 223,497 223,497 200,611 22,886 Legal Department: Salaries and Wages 53,054 53,054 50,390 2,664 Fringe Benefits 22,371 8,351 7,785 566 Contractual Services 220,000 220,000 197,642 22,358 Total Legal Department $295,425 $281,405 $255,817 $25,588 (continued) - 132 - City of Brecksville,Ohio Schedule of�Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Fund(continued) For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Legislarive: Salaries and Wages $195,312 $195,312 $189,140 $6,172 Fringe Benefits 70,582 70,582 65,717 4,865 Contractual Seroices 8,400 10,400 7,915 2,485 Materials and Supplies 5,000 7,898 7,816 82 Purchased Services 2,000 2,000 265 1,735 CapitalOutlay 11,000 8,102 0 8,102 Total Legislative 292,294 294,294 270,853 23,441 Civil Service: Salaries and Wages 3,000 3,000 0 3,000 Fringe Benefits 464 464 0 464 Contractual Services 5,000 5,000 900 4,100 Materials and Supplies 500 500 0 500 Total Civil Service 8,964 8,964 900 8,064 Information Technology: Salaries and Wages 150,479 151,729 151,454 275 Fringe Benefits 43,933 44,703 41,441 3,262 Contractual Services 313,558 317,045 317,045 0 Materials and Supplies 83,727 80,240 74,514 5,726 Purchased Services 34,754 34,754 34,247 507 CapitalOutlay 146,584 146,584 84,917 61,667 Total Information Technology 773,035 775,055 703,618 71,437 County Fiscal Officer and Treasurer: Contractual Services 100,000 ll6,527 114,382 2,145 Income Tax Administration: Contractual Services 24,000 24,000 24,000 0 Materials and Supplies 1,000 1,000 0 1,000 Purchased Services 1,000 1,000 0 1,000 Other 690,618 818,618 744,996 73,622 Tota1 Income Tax Administration 716,618 844,618 768,996 75,622 Administrative Support: Salaries and Wages 50,000 50,000 40,669 9,331 Fringe Benefits 389,545 389,545 346,355 43,190 Contractual Services 858,002 1,038,002 887,191 150,811 Materials and Supplies 624,502 624,502 521,680 102,822 Purchased Services 11,500 11,500 7,909 3,591 CapitalOutlay 229,985 917,426 917,425 1 Other 439,798 467,990 402,589 65,401 Total Administrative Support $2,603,332 $3,498,965 $3,123,818 $375,147 (continued) - 133 - City of Brecksville,Ohio Schedule of�Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Fund(continued) For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Land and Building: Salaries and Wages $1,291,048 $1,285,168 $1,215,555 $69,613 FringeBenefits 546,145 548,009 476,788 71,221 Contractual Seroices 104,100 104,100 53,744 50,356 Materials and Supplies 161,645 193,727 142,353 51,374 Purchased Services 841,299 864,244 686,985 177,259 CapitalOutlay 3,970 10,376 7,265 3,111 Other 2,000 2,000 0 2,000 Total Land and Building 2,950,207 3,007,624 2,582,690 424,934 Engineer: Salaries and Wages 17,000 17,000 10,030 6,970 Fringe Benefits 2,627 2,627 1,548 1,079 Contractual Services 510,940 327,640 255,691 71,949 Other 510,000 4,110,000 3,146,167 963,833 Total Engineer 1,040,567 4,457,267 3,413,436 1,043,831 Total Legislative and Execurive 9,745,375 14,288,315 12,189,868 2,098,447 Judicial System: Mayor's Court: Salaries and Wages 133,121 113,121 98,212 14,909 Fringe Benefits 35,480 35,480 30,320 5,160 Contractual Services 1,000 1,000 0 1,000 Materials and Supplies 8,388 8,388 5,670 2,718 Purchased Services 1,500 1,500 900 600 Total Judicial System 179,489 159,489 135,102 24,387 Total General Government 9,924,864 14,447,804 12,324,970 2,122,834 Public Safety: Police: Law Enforcement: Salaries and Wages 3,086,878 1,903,378 1,703,966 199,412 Fringe Benefits 1,110,115 865,738 719,918 145,820 Contractual Services 609,677 609,677 581,784 27,893 Materials and Supplies 132,296 132,295 117,659 14,636 Purchased Services 155,644 161,224 137,991 23,233 Capital Outlay 167,500 166,389 147,770 18,619 Total Law Enforcement 5,262,110 3,838,701 3,409,088 429,613 Prisoner Support: Contractual Services 40,000 40,000 35,199 4,801 Materials and Supplies 1,500 1,500 280 1,220 Purchased Services 500 500 35 465 Total Prisoner Support $42,000 $42,000 $35,514 $6,486 (continued) - 134 - City of Brecksville,Ohio Schedule of�Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Fund(conrinued) For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Traffic Control: Materials and Supplies $20,617 $20,617 $9,714 $10,903 Purchased Services 56,350 56,350 23,678 32,672 Total Traffic Control 76,967 76,967 33,392 43,575 Street Lighting: Purchased Services 110,000 110,000 100,388 9,612 Animal Control: Salaries and Wages 60,031 60,031 60,030 1 Fringe Benefits 31,070 31,220 28,082 3,138 Contractual Services 4,500 4,500 1,835 2,665 Materials and Supplies 1,800 1,800 345 1,455 Purchased Services 6,250 6,250 87 6,163 Total Animal Control 103,651 103,801 90,379 13,422 Total Police 5,594,728 4,171,469 3,668,761 502,708 Fire: Hydrants: Salaries and Wages 16,000 41,568 26,709 14,859 Fringe Benefits 2,472 6,423 4,124 2,299 Contractual Services 1,000 1,000 199 801 Materials and Supplies 3,500 3,500 2,696 804 Purchased Services 500 500 0 500 Total Fire 23,472 52,991 33,728 19,263 Total Public Safety 5,618,200 4,224,460 3,702,489 521,971 Public Health and Social Services: Board of Health: Contractual Services 81,810 81,810 81,810 0 Cemetery: Salaries and Wages 116,018 ll 8,218 108,497 9,721 Fringe Benefits 27,680 29,780 26,501 3,279 Contractual Services 2,500 2,500 0 2,500 Materials and Supplies 10,218 10,218 6,459 3,759 Other 2,000 2,000 0 2,000 TotalCemetery $158,416 $162,716 $141,457 $21,259 (continued) - 135 - City of Brecksville,Ohio Schedule of�Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Fund(continued) For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Human Services Department: Salaries and Wages $404,360 $404,360 $379,074 $25,286 Fringe Benefits 165,650 165,650 145,559 20,091 Contractual Seroices 28,246 28,246 19,228 9,018 Materials and Supplies 97,572 97,572 78,307 19,265 Purchased Services 253,229 261,629 231,638 29,991 Other 17,858 17,858 17,358 500 Total Human Services Department 966,915 975,315 871,164 104,151 Total Public Health and Social Services 1,207,141 1,219,841 1,094,431 125,410 Street Construction,Maintenance,and Repair: Street Repairs and Maintenance: Salaries and Wages 947,558 947,558 936,424 11,134 Fringe Benefits 519,992 519,992 477,588 42,404 Contractual Services 500 500 0 500 Materials and Supplies 30,000 30,000 23,697 6,303 Total Street Repairs and Maintenance 1,498,050 1,498,050 1,437,709 60,341 Vehicle Maintenance: Salaries and Wages 444,504 444,504 421,058 23,446 Fringe Benefits 186,229 186,229 167,493 18,736 Materials and Supplies 48,000 42,495 41,525 970 Purchased Services 171,542 187,047 187,047 0 CapitalOutlay 25,000 20,261 20,261 0 Total Vehicle Maintenance 875,275 880,536 837,384 43,152 Snow and Ice Removal: Salaries and Wages 147,500 147,500 127,158 20,342 Fringe Benefits 22,789 22,789 19,606 3,183 Contractual Services 60,000 60,000 30,000 30,000 Materials and Supplies 46,758 46,758 42,110 4,648 CapitalOutlay 0 10,000 9,979 21 Total Snow and Ice and Removal 277,047 287,047 228,853 58,194 Total Street Construction,Maintenance,and Repair 2,650,372 2,665,633 2,503,946 161,687 Housing and Community Development: Housing and Building Inspection: Salaries and Wages 444,725 465,158 432,358 32,800 Fringe Benefits 199,021 209,251 177,508 31,743 Contractual Services 17,500 47,300 27,580 19,720 Materials and Supplies 15,000 15,000 3,068 11,932 Purchased Services 11,776 11,776 3,008 8,768 Other 5,000 177,967 82,266 95,701 Total Housing and Building Inspection $693,022 $926,452 $725,788 $200,664 (continued) - 136 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Fund(continued) For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Board of Zoning Appeals: Contractual Seroices $5,000 $5,000 $2,537 $2,463 Planning Commission: Salaries and Wages 2,500 2,500 2,332 168 Fringe Benefits 386 386 361 25 Contractual Services 7,038 7,038 502 6,536 Total Planning Commission 9,924 9,924 3,195 6,729 Urban Forestry: Salaries and Wages 293,728 296,728 286,708 10,020 Fringe Benefits 135,338 136,538 118,874 17,664 Contractual Services 31,500 31,500 9,482 22,018 Materials and Supplies 21,500 21,500 12,662 8,838 Purchased Services 13,500 13,500 9,421 4,079 Total Urban Forestry 495,566 499,766 437,147 62,619 Total Housing and Community Development 1,203,512 1,441,142 1,168,667 272,475 Basic Utility Services: Service Department: Salaries and Wages 333,767 333,767 324,988 8,779 Fringe Benefits 149,337 149,337 134,532 14,805 Contractual Services 6,160 6,160 1,933 4,227 Materials and Supplies 26,079 26,079 18,492 7,587 Purchased Services 12,000 12,000 11,466 534 CapitalOutlay 216,273 215,716 215,716 0 Total Service Department 743,616 743,059 707,127 35,932 Solid Waste and Recycling: Salaries and Wages 492,219 492,219 487,689 4,530 Fringe Benefits 183,811 183,811 144,718 39,093 Contractual Services 398,329 398,329 373,265 25,064 Materials and Supplies 5,896 5,831 5,220 611 Purchased Services 47,500 47,565 47,565 0 CapitalOutlay 0 77,772 77,772 0 Total Solid Waste and Recycling 1,127,755 1,205,527 1,136,229 69,298 Storm Sewers and Drains: Salaries and Wages 91,000 86,768 40,644 46,124 Fringe Benefits 14,060 13,424 6,271 7,153 Materials and Supplies 10,000 10,000 1,778 8,222 Purchased Services 25,000 25,000 16,330 8,670 Total Storm Sewers and Drains $140,060 $135,192 $65,023 $70,169 (continued) - 137 - City of Brecksville,Ohio Schedule of�Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Fund(continued) For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Leaf Program: Salaries and Wages $60,914 $65,146 $65,146 $0 Fringe Benefits 9,411 10,047 10,047 0 Contractual Seroices 65,375 65,375 49,220 16,155 Purchased Services 18,000 18,000 10,110 7,890 Total Leaf Program 153,700 158,568 134,523 24,045 Total Basic Utility Services 2,165,131 2,242,346 2,042,902 199,444 Debt Service: Principal Retirement 4,412 4,412 4,412 0 Interest 1,281 1,281 1,281 0 Total Debt Service 5,693 5,693 5,693 0 Total Expenditures 22,774,913 26,246,919 22,843,098 3,403,821 Excess of Revenues Over(Under)Expenditures (1,859,022) (1,268,649) 3,351,762 4,620,411 Other Financing Sources(Uses) Sale of Capital Assets 5,000 5,000 3,311 (1,689) Advances In 300,000 300,000 300,000 0 Advances Out (340,000) (2,579,898) (2,579,898) 0 Transfers Out (1,891,000) (7,468,291) (7,468,291) 0 Total Other Financing Sources(I1ses) (1,926,000) (9,743,189) (9,744,878) (1,689) Net Change in Fund Balance (3,785,022) (11,011,838) (6,393,116) 4,618,722 Fund Balance Beginning of Year 17,866,076 17,866,076 17,866,076 0 Prior Year Encumbrances Appropriated 476,733 476,733 476,733 0 FundBalanceEndofYear $14,557,787 $7,330,971 $11,949,693 $4,618,722 - 138 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Fire Department Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Property Taxes $2,312,238 $2,312,238 $2,342,570 $30,332 Intergovernmental 277,469 277,469 291,502 14,033 Investment Earnings and Other Interest 15,000 15,000 22,864 7,864 Miscellaneous 1,302 1,302 1,845 543 Total Revenues 2,606,009 2,606,009 2,658,781 52,772 Expenditures Current: Public Safety: Fire: Salaries and Wages 1,952,660 1,952,660 1,896,587 56,073 Fringe Benefits 860,430 860,430 803,996 56,434 Contractual Services 20,540 20,540 18,593 1,947 Materials and Supplies 54,673 54,673 46,558 8,115 Purchased Services l 12,863 112,863 84,726 28,137 Total Expenditures 3,001,166 3,001,166 2,850,460 150,706 Excess ofRevenues Under Expenditures (395,157) (395,157) (191,679) 203,478 Other Financing Sources Sale of CapitaL Assets 500 500 481 (19) Transfers In 421,000 421,000 421,000 0 Total Other Financing Sources 421,500 421,500 421,481 (19) Net Change in Fund Balance 26,343 26,343 229,802 203,459 Fund Balance Beginning of Year 1,320,993 1,320,993 1,320,993 0 Prior Year Encumbrances Appropriated 26,474 26,474 26,474 0 Pund Balance End of Year $1,373,810 $1,373,810 $1,577,269 $203,459 - 139 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Obligation Bond Retirement Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues $0 $0 $0 $0 Egpenditures Debt Service: Principal Retirement 1,688,056 14,130,000 14,130,000 0 Interest 784,105 1,032,627 1,032,625 2 Issuance Costs 260,000 475,453 263,778 211,675 Total Expenditures 2,732,161 15,638,080 15,426,403 211,677 ExcessofRevenuesUnderExpenditures (2,732,161) (15,638,080) (15,426,403) 211,677 Other Financing Sources Premium on Bond Anticipation Notes Issued 0 44,454 44,454 0 General Obligation Bonds Issued 0 11,855,000 11,855,000 0 Premium on General Obligation Bonds Issued 260,000 1,299,553 1,084,006 (215,547) Transfers In 2,472,160 2,327,466 2,327,466 0 Total Other Financing Sources 2,732,160 15,526,473 15,310,926 (215,547) Net Change in Fund Balance (1) (1 l 1,607) (115,477) (3,870) Fund Balance Beginning of Year 803,861 803,861 803,861 0 Fund Balance End of Year $803,860 $692,254 $688,384 ($3,870) - 140 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual General Municipal Improvement Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Municipal Income Taxes $960,000 $960,000 $960,000 $0 Intergovernmental 15,271,096 6,494,764 662,242 (5,832,522) Special Assessments 6,631 6,631 7,260 629 Investment Earnings and Other Interest 18,000 18,000 112,121 94,121 Contributions and Donations 0 0 10,943 10,943 Miscellaneous 1,000 1,000 487,389 486,389 Total Revenues 16,256,727 7,480,395 2,239,955 (5,240,440) Expenditures Capital Outlay: Purchased Services 400 400 72 328 CapitalOutlay 23,428,512 19,423,543 14,811,856 4,611,687 Total Capital Outlay 23,428,912 19,423,943 14,811,928 4,612,015 Debt Service: Principal Retirement 4,110,000 0 0 0 Interest 39,160 0 0 0 Total Debt Service 4,149,160 0 0 0 Total Expenditures 27,578,072 19,423,943 14,811,928 4,612,015 Excess ofRevenues Under Expenditures (11,321,345) (11,943,548) (12,571,973) (628,425) Other Financing Sources(Uses) Bonds Issued 4,1]0,000 0 0 0 Loans Issued 750,000 0 0 0 Bond Anticipation Notes Issued 10,800,000 10,500,000 9,750,000 (750,000) Advances In 300,000 2,539,898 2,539,898 0 Advances Out (300,000) (300,000) (300,000) 0 Transfers In 0 4,146,568 4,146,568 0 Transfers Out (764,878) (700,989) (700,989) 0 Total Other Pinancing Sources(Uses) 14,895,122 16,185,477 15,435,477 (750,000) Net Change in Fund Balance 3,573,777 4,241,929 2,863,504 (1,378,425) Fund Balance Beginning of Year 443,051 443,051 443,OS l 0 Priar Year Encumbrances Appropriated 720,065 720,065 720,065 0 Fund Balance End of Year $4,736,893 $5,405,045 $4,026,620 ($1,378,425) - 141 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Buildings and Improvements Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Municipal Income Taxes $1,700,004 $1,700,004 $1,700,004 $0 Intergovernmental 0 0 43,885 43,885 Investment Earnings and Other Interest 10,000 10,000 22,276 12,276 Miscellaneous 0 0 7,400 7,400 Total Revenues 1,710,004 1,710,004 1,773,565 63,561 Expenditures Capital Outlay: CapitalOutlay 1,207,249 1,207,249 621,823 585,426 Excess of Revenues Over Expenditures 502,755 502,755 1,151,742 648,987 Other Financing Uses Transfers Out (943,837) (943,837) (943,837) 0 Net Change in Fund Balance (441,082) (441,082) 207,905 648,987 Fund Balance Beginning of Year 1,221,649 1,221,649 1,221,649 0 Prior Year Encumbrances Appropriated 275,049 275,049 275,049 0 Fund Balance End of Year $1,055,616 $1,055,616 $1,704,603 $648,987 - 142 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Road Improvements Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Municipal Income Taxes $360,000 $360,000 $360,000 $0 Intergovernmental 18,279 18,279 16,785 (1,494) Investment Earnings and Other Interest 4,000 4,000 15,499 11,499 Total Revenues 382,279 382,279 392,284 10,005 Expenditures Capital Outlay: Purchased Services 382,000 468,000 217,877 250,123 Excess ofRevenues Over(Under)Expenditures 279 (85,721) 174,407 260,128 Other Financing Sources Transfers In 0 1,427,878 1,430,722 2,844 NetChangeinFundBalance 279 1,342,157 1,605,129 262,972 Fund Balance Beginning of Year 352,050 352,050 352,050 0 Fund Balance End of Year $352,329 $1,694,207 $1,957,179 $262,972 - 143 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Motor Vehicle License Taz Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Intergovernmental $37,281 $37,281 $38,289 $1,008 Inveshnent Earnings and Other Interest 500 500 1,217 717 Total Revenues 37,781 37,781 39,506 1,725 Egpenditures Current Street Construction,Maintenance,and Repair: Street Repair and Maintenance: CapitalOutlay 42,350 67,350 11,800 55,550 Net Change in Fund Balance (4,569) (29,569) 27,706 57,275 Fund Balance Beginning of Year 73,789 73,789 73,789 0 Prior Year Encumbrances Appropriated 350 350 350 0 Pund Balance End of Year $69,570 $44,570 $101,845 $57,275 - 144 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Street Repair and Maintenance Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Intergovernmental $849,113 $849,113 $871,241 $22,128 Investment Earnings and Other Interest 5,000 5,000 7,568 2,568 Miscellaneous 0 0 583 583 TotalRevenues 854,113 854,113 879,392 25,279 Expenditures Current: Street Construction,Maintenance,and Repair: Snow and Ice Removal: Purchased Services 894,865 1,ll5,865 1,048,972 66,893 Capital Outlay 65,621 65,621 65,621 0 TotalExpenditures 960,486 1,181,486 1,114,593 66,893 Net Change in Fund Balance (106,373) (327,373) (235,201) 92,172 Fund Balance Beginning of Year 701,688 701,688 701,688 0 Prior Year Encumbrances Appropriated 106,486 106,486 106,486 0 Pund Balance End of Year $701,801 $480,801 $572,973 $92,172 - 145 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual State Highway Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Intergovernmental $62,000 $62,000 $68,059 $6,059 Investment Earnings and Other Interest 2,000 2,000 3,026 1,026 Total Revenues 64,000 64,000 71,085 7,085 Egpenditures Current Street Construction,Maintenance,and Repair: Route 21 Center Strip: Purchased Services 75,000 157,000 70,000 87,000 Net Change in Fund Balance (11,000) (93,000) 1,085 94,085 Fund Balance Beginning of Year 186,501 186,501 186,501 0 Fund Balance End of Year $175,501 $93,501 $187,586 $94,085 - 146 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Community Center Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Charges for Services $1,084,600 $1,086,600 $1,234,966 $148,366 Licenses and Permits 15,000 15,000 12,236 (2,764) Intergovernmental 0 75,000 12,000 (63,000) Investment Earnings and Other Interest 9,000 9,000 10,814 1,814 Contributions and Donations 14,600 14,600 20,555 5,955 Rentals 59,500 59,500 59,181 (319) Miscellaneous 9,876 9,876 8,716 (1,160) Total Revenues 1,192,576 1,269,576 1,358,468 88,892 Expenditures Current: Recreational Activities: Community Center: Salaries and Wages 1,387,288 1,386,288 1,212,890 173,398 Fringe Benefits 462,095 462,095 383,305 78,790 Contractual Services 192,930 195,215 153,200 42,015 Materials and Supplies 214,934 216,749 206,014 10,735 Purchased Services 383,253 405,398 380,892 24,506 CapitalOutlay 75,982 180,982 172,307 8,675 Other 44,800 49,267 49,267 0 Total Expenditures 2,761,282 2,895,994 2,557,875 338,119 ExcessofRevenuesLlnderExpenditures (1,568,706) (1,626,418) (1,199,407) 427,011 Other Financing Sources Sale of Capital Assets 0 0 1,227 1,227 Transfers In 1,170,000 1,170,000 1,170,000 0 Total Other Financing Sources 1,170,000 1,170,000 1,171,227 1,227 Net Change in Fund Balance (398,706) (456,418) (28,180) 428,238 Fund Balance Beginning of Year 784,565 784,565 784,565 0 Prior Year Encumbrances Appropriated 35,386 35,386 35,386 0 Fund Balance End of Year $421,245 $363,533 $791,771 $428,238 - 147 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Road Maintenance Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Property Taxes $680,070 $680,070 $688,992 $8,922 Intergovernmental 81,609 81,609 85,383 3,774 Investment Earnings and Other Interest 5,000 5,000 4,900 (100) Total Revenues 766,679 766,679 779,275 12,596 Expenditures Current: Street Construction,Maintenance,and Repair: Street Repair and Maintenance: Contractual Services 0 49 49 0 CapitalOutlay 672,000 802,741 765,886 36,855 Total Expenditures 672,000 802,790 765,935 36,855 Net Change in Fund Balance 94,679 (36,111) 13,340 49,451 Fund Balance Beginning of Year 314,387 314,387 314,387 0 Fund Balance End of Year $409,066 $278,276 $327,727 $49,451 - 148 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Federal Equitahle Sharing Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Investment Earnings and Other Interest $300 $300 $245 ($55) Expenditures Current: General Government: Legislative and Executive: Materials and Supplies 7,000 7,000 0 7,000 Net Change in Fund Balance (6,700) (6,700) 245 6,945 Fund Balance Beginning of Year 18,750 18,750 18,750 0 Fund Balance End of Year $12,050 $12,050 $18,995 $6,945 - 149 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Enforcement and Education Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Fines,Forfeitures,and Settlements $1,000 $1,000 $200 ($800) Intergovernmental 2,400 2,400 0 (2,400) Investment Earnings and Other Interest 440 440 405 (35) Total Revenues 3,840 3,840 605 (3,235) Expenditures Current: Public Safety: Police: Salaries and Wages 1,600 1,600 0 1,600 Fringe Bene6ts 335 335 0 335 Materials and Supplies 5,600 5,600 0 5,600 Purchased Services 1,500 1,500 0 1,500 Total Expenditures 9,035 9,035 0 9,035 Net Change in Fund Balance (5,195) (5,195) 605 5,800 Fund Balance Beginning of Year 30,854 30,854 30,854 0 Pund Balance End of Year $25,659 $25,659 $31,459 $5,800 - 1S0 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Court Computerization Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Fines,Forfeitures,and Settlements $6,000 $6,000 $5,640 ($360) Investment Earnings and Other Interest 1,700 1,700 1,938 238 Total Revenues 7,700 7,700 7,578 (122) Egpenditures Current General Government: Judicial System: Materials and Supplies 5,349 6,194 4,797 1,397 Purchased Services 2,700 2,700 336 2,364 TotalExpenditures 8,049 8,894 5,133 3,761 Net Change in Fund Balance (349) (1,194) 2,445 3,639 Fund Balance Beginning of Year 149,467 149,467 149,467 0 Prior Year Encumbrances Appropriated 349 349 349 0 Fund Balance End of Year $149,467 $148,622 $152,261 $3,639 - 151 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Natureworks Grants Pund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues $0 $0 $0 $0 Egpenditures 0 0 0 0 Net Change in Fund Balance 0 0 0 0 Fund Balance Beginning of Year 950 950 950 0 Fund Balance End of Year $950 $950 $950 $0 - 152 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Recycling Demo Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Intergovernmental $6,000 $6,000 $5,773 ($227) Investment Earnings and Other Interest 50 50 45 (5) Total Revenues 6,050 6,050 5,818 (232) Egpenditures Current Basic Utility Services: Rubbish Recycling: Materials and Supplies 6,000 6,000 5,766 234 Net Change in Fund Balance 50 50 52 2 Fund Balance Beginning of Year 6,150 6,150 6,150 0 Fund Balance End of Year $6,200 $6,200 $6,202 $2 - 153 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Tree Planting Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Licenses and Permits $15,000 $15,000 $29,700 $14,700 Intergovernmental 0 27,608 0 (27,608) Total Revenues 15,000 42,608 29,700 (12,908) Expenditures Current Housing and Community Development: Tree Planning: Materials and Supplies 35,000 71,300 27,913 43,387 Net Change in Fund Balance (20,000) (28,692) 1,787 (30,479) Fund Balance Beginning of Year 102,504 102,504 102,504 0 Fund Balance End of Year $82,504 $73,812 $104,291 ($30,479) - 154 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Law Enforcement Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Fines,Forfeitures,and Settlements $5,000 $5,000 $329 ($4,671) Investment Earnings and Other Interest 1,500 1,500 968 (532) Total Revenues 6,500 6,500 1,297 (5,203) Egpenditures Current Public Safety: Police: Materials and Supplies 22,000 22,000 12,800 9,200 Net Change in Fund Balance (15,500) (15,500) (11,503) 3,997 Fund Balance Beginning of Year 85,906 85,906 85,906 0 Fund Balance End of Year $70,406 $70,406 $74,403 $3,997 - 1SS - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Law Enforcement Mandatory Drug Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Investment Earnings and Other Intcrest $500 $500 $559 $59 Expenditures 0 0 0 0 Net Change in Fund Balance 500 500 559 59 Fund Balance Beginning of Year 42,903 42,903 42,903 0 Fund Balance End of Year $43,403 $43,403 $43,462 $59 - 156 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Police Pension Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Property Taxes $204,021 $204,021 $206,699 $2,678 Intergovernmental 24,483 24,483 25,615 1,132 Total Revenues 228,504 228,504 232,314 3,810 Expenditures Current Public Safety: Police: Fringe Benefits 165,000 165,000 165,000 0 Contractual Services 0 15 15 0 Total Expenditures 165,000 165,015 165,015 0 Net Change in Fund Balance 63,504 63,489 67,299 3,810 Fund Balance Beginning of Year 297,493 297,493 297,493 0 Fund Balance End of Year $360,997 $360,982 $364,792 $3,810 - 1S7 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Peace Officer Training Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues $0 $0 $0 $0 Egpenditures Current Public Safety: Police: Purchased Services 5,000 10,243 2,920 7,323 Net Change in Fund Balance (5,000) (10,243) (2,920) 7,323 Fund Balance Beginning of Year 10,243 10,243 10,243 0 Fund Balance End of Year $5,243 $0 $7,323 $7,323 - 158 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Local Fiscal Recovery Fund For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Intergovernmental $715,361 $718,206 $718,206 $0 Expenditures Current Public Safety: Police: Salaries and Wages 1,183,499 1,187,771 1,187,771 0 Fringe Benefits 244,379 242,952 242,952 0 Net Change in Fund Balance (712,517) (712,517) (712,517) 0 Fund Balance Beginning of Year 712,517 712,517 712,517 0 Fund Balance End of Year $0 $0 $0 $0 - 159 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual OneOhio Opioid Settlement Fund For the Year Ended December 31,2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Fines,Forfeitures,and Settlements $0 $0 $2,083 $2,083 Expenditures 0 0 0 0 Net Change in Fund Balance 0 0 2,083 2,083 Fund Balance Beginning of Year 0 0 0 0 Fund Balance End of Year $0 $0 $2,083 $2,083 - 160 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Special Assessment Bond Retirement Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Special Assessments $251,328 $251,328 $251,988 $660 Expenditures Current: General Government: Legislative and Executive: Purchased Services 7,000 7,000 2,451 4,549 Debt Service: Principal Retirement 277,000 277,000 277,000 0 Interest 32,916 32,916 32,916 0 Total Debt Service 309,916 309,916 309,916 0 Total Expenditures 316,916 316,916 312,367 4,549 ExcessofRevenuesUnderExpenditures (65,588) (65,588) (60,379) 5,209 Other Financing Sources Advances In 40,000 40,000 40,000 0 Net Change in Fund Balance (25,588) (25,588) (20,379) 5,209 Fund Balance Beginning of Year 34,358 34,358 34,358 0 Pund Balance End of Year $8,770 $8,770 $13,979 $5,209 - 161 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Issue II Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Investment Earnings and Other Interest $3,000 $3,000 $3,241 $241 Expenditures Capital Outlay: Contractual Services 3,000 3,000 0 3,000 Debt Service: Principal Retirement 31,157 31,157 31,155 2 TotalExpenditures 34,157 34,157 31,155 3,002 ExcessofRevenuesLlnderExpenditures (31,157) (31,157) (27,914) 3,243 Other Financing Sources Transfers In 31,157 31,157 31,157 0 Net Change in Fund Balance 0 0 3,243 3,243 Fund Balance Beginning of Year 238,945 238,945 238,945 0 Fund Balance End of Year $238,945 $238,945 $242,188 $3,243 - 162 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Recreatzon Expansion Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Licenses and Permits $44,000 $44,000 $70,174 $26,174 Investment Earnings and Other Interest 900 900 1,312 412 Total Revenues 44,900 44,900 71,486 26,586 Expenditures Capital Outlay: Materials and Supplies 10,980 10,980 10,870 110 CapitalOutlay 93,755 93,755 90,208 3,547 Other 800 800 72 728 Total Expenditures 105,535 105,535 l O1,150 4,385 Net Change in Fund Balance (60,635) (60,635) (29,664) 30,971 Fund Balance Beginning of Year 52,227 52,227 52,227 0 Priar Year Encumbrances Appropriated 58,385 58,385 58,385 0 Fund Balance End of Year $49,977 $49,977 $80,948 $30,971 - 163 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Public Utility Improvement Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Licenses and Permits $97,500 $97,500 $62,216 ($35,284) Intergovernmental 6,000 6,000 6,000 0 Investment Earnings and Other Interest 2,000 2,000 3,668 1,668 TotalRevenues 105,500 105,500 71,884 (33,616) Expenditures Capital Outlay: Contractual Services 50,000 50,000 7,275 42,725 Other 2,000 2,000 0 2,000 Total Expenditures 52,000 52,000 7,275 44,725 Net Change in Fund Balance 53,500 53,500 64,609 11,109 Fund Balance Beginning of Year 880,271 880,271 880,271 0 Priar Year Encumbrances Appropriated 6,000 6,000 6,000 0 Fund Balance End of Year $939,771 $939,771 $950,880 $11,109 - 164 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Fire Ambulance Capital Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Charges for Services $330,000 $330,000 $388,530 $58,530 Investment Earnings and Other Interest 10,000 10,000 15,193 5,193 Total Revenues 340,000 340,000 403,723 63,723 Egpenditures Capita l Outlay: Contractual Services 30,000 30,000 29,163 837 CapitalOutlay 23,119 23,119 23,ll9 0 TotalExpenditures 53,119 53,119 52,282 837 Net Change in Fund Balance 286,881 286,881 351,441 64,560 Fund Balance Beginning of Year 924,404 924,404 924,404 0 Prior Year Encumbrances Appropriated 23,119 23,119 23,ll9 0 Fund Balance End of Year $1,234,404 $1,234,404 $1,298,964 $64,560 - 16S - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Police Station Building Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Investment Earnings and Other Intcrest $0 $0 $114 $ll4 Expenditures 0 0 0 0 Excess of Revenues Over Expenditures 0 0 114 ll 4 Other Financing Uses Transfers Out (36,108) (36,108) (36,108) 0 Net Change in Fund Balance (36,108) (36,108) (35,994) ll 4 Fund Balance Beginning of Year 36,188 36,188 36,188 0 Pund Balance End of Year $80 $80 $194 $ll4 - 166 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Recreation Paczlities Expansion Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Intergovernmental $0 $25,000 $33,546 $8,546 Investment Earnings and Other Interest 1,000 1,000 6,052 5,052 Contriburions and Donations 0 20,000 20,000 0 Total Revenues 1,000 46,000 59,598 13,598 Expenditures Capital Outlay: CapitalOutlay 122,734 347,304 343,902 3,402 Debt Service: Principal Retirement 8,600,000 0 0 0 Interest 86,000 0 0 0 Total Debt Service 8,686,000 0 0 0 Total Expenditures 8,808,734 347,304 343,902 3,402 ExcessofRevenuesUnderExpenditures (8,807,734) (301,304) (284,304) 10,196 Other Financing Sources(Uses) Bond Anticiparion Notes Issued 8,600,000 0 0 0 SaLe of Capital Assets 0 0 800 800 Transfers In 300,000 300,000 300,000 0 Transfers Out (758,494) (677,689) (677,689) 0 Total Other Financing Sources(Uses) 8,141,506 (377,689) (376,889) 800 Net Change in Fund Balance (666,228) (678,993) (661,193) 17,800 Fund Balance Beginning of Year 767,600 767,600 767,600 0 Prior Year Encumbrances Appropriated 122,734 122,734 122,734 0 Fund Balance End of Year $224,106 $211,341 $229,141 $17,800 - 167 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Self Insurance Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Investment Earnings $20,000 $20,000 $26,969 $6,969 Miscellaneous 123,496 123,496 220,165 96,669 Total Revenues 143,496 143,496 247,134 103,638 Expenses Purchased Services 7,000 7,000 4,149 2,851 Claims 307,000 307,000 8,675 298,325 Total Expenses 314,000 314,000 12,824 301,176 Net Change in Fund Eguity (]70,504) (170,504) 234,310 404,814 Fund Eguity Beginning of Year 1,930,212 1,930,212 1,930,212 0 Fund Equity End of Year $1,759,708 $1,759,708 $2,164,522 $404,814 - 168 - City of Brecksville,Ohio Schedule of Revenues,Expenditures and Changes in Fund Balance-Budget(Non-GAAP Basis)and Actual Cemetery Endowment Fund For the Year Ended December 31, 2022 Budgeted Amounts Original Final Variance with Budget Budget Actual Final Budget Revenues Investment Earnings $50 $50 $44 ($6) Expenses Materials and Supplies l00 100 0 100 Net Change in Fund Equity (50) (50) 44 94 Fund Equity Beginning of Year 3,416 3,416 3,416 0 Pund Eguity End of Year $3,366 $3,366 $3,460 $94 - 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' .- . .� . ., _ ; ,.,_' I _ � . __._-�_ ... - _�_�,-.,-_- -_._. ' •'1 �� - 'r�Rs�' ���IG` .. ....:s-�^ � a-- ,��u�` � �_ ' ' _.� - ' ' . _ - _�' _ _ __ _ �+�.� Statistical Section This part of the City of Brecksville, Ohio's Annual Comprehensive 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 City's overall financial health. Contents Pages(s) FinancialTrends..............................................................................................................................S2—Sll These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. RevenueCapacity...........................................................................................................................Sl2—S20 These schedules contain information to help the reader assess the City's most significant local revenue, the property tax and the municipal income tax. DebtCapacity.................................................................................................................................S21—S25 These schedules present information to help the reader assess the affordability of the City's current levels of outstanding debt and the Ciry's ability to issue additional debt in the future. Demogvaphicand Econoinic Information....................................................................................S26—S31 These schedules offer economic and demographic indicators to help the reader understand the environment within which the City's financial activities take place. OperatingInformation...................................................................................................................S32—S35 These schedules contain service and infrastructure data to help the reader understand how the information in the City's financial report relates to the services the City provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the Annual Comprehensive Financial Reports for the relevant year. - S1 - City of Brecksville,Ohio Net Position By Component Last Ten Years (Accrual Basis ofAccountin� 2022 2021(3) 2020 2019 Governmental Activities Net Investment in Capital Assets $88,292,505 $85,063,992 $83,200,864 $79,168,430 Restricted: Capital Projects 0 0 129,740 231,764 Debt Service 1,042,613 967,569 1,175,556 2,023,439 Communiry Center N/A N/A N/A N/A Court Computerization 146,860 149,816 146,591 143,943 Fire Department 1,435,356 1,205,570 1,052,048 466,590 Police Department 550,580 497,562 618,936 579,771 Road Maintenance 382,759 371,325 441,926 393,517 Street Construction,Maintenance,and Repair 1,370,202 1,575,888 1,035,380 1,147,848 Pension Plans 96,243 76,631 0 0 Other Purposes 115,573 ll 2,073 127,615 120,909 Unrestricted(Deficit) 18,947,361 9,334,019 2,933,760 (3,311,888) Total Governmental Activities Net Position $112,380,052 $99,354,445 $90,862,416 $80,964,323 (1) The City reported the impact of GASB Statement No.68 beginning in 2014 (2) The City reported the impact of GASB Statement No.75 beginning in 2017 (3) The City reported the impact of GASB Statement No.87 beginning in 2021 - SZ - 2018 2017(2) 2016 2015 2014(1) 2013 $78,737,049 $65,981,738 $73,353,987 $69,946,323 $74,133,853 $72,417,ll4 1,110,602 7,843,753 590,944 900,027 1,420,845 329,701 2,479,039 2,771,399 3,474,178 3,973,179 4,415,231 4,805,954 N/A N/A N/A N/A N/A 146,894 137,454 174,606 163,287 150,372 242,043 235,719 209,281 254,211 226,751 148,663 177,816 238,486 521,130 509,726 549,496 524,703 480,237 410,660 220,836 174,144 234,283 218,201 245,463 215,326 806,269 700,642 639,465 731,322 872,497 1,015,590 0 0 0 0 0 0 124,487 122,269 172,873 176,243 159,198 37,646 (13,354,556) (7,158,140) 3,808,154 2,295,237 654,223 16,694,528 $70,991,591 $71,374,348 $83,213,418 $79,064,270 $82,801,406 $96,547,618 - 53 - City of Brecksville,Ohio Changes in Net Position Last Ten Yem�s (Accrual Basis ofAccountin� 2022 2021 2020 2019 Program Revenues Governmental Activities: Charges for Services and Operating Assessments: General Government: Legislative and Executive $806,413 $4,059,446 $319,617 $551,325 Judicial System 176,350 146,018 131,371 240,670 Public Safety: PoGce 4,462 5,389 3,837 7,885 Fire 481,181 358,836 251,482 310,041 Public Health and Social Services 88,779 85,220 65,481 80,350 Street Construction,Maintenance,and Repair 6,293 6,235 6,162 6,391 Housing and Community Development 287,492 214,773 208,004 202,895 Basic Utility Services 83,920 79,923 201,093 136,565 Recreational Activities 1,376,557 981,306 655,860 1,079,178 Subtotal-Charges for Services and Operating Assessments 3,311,447 5,937,146 1,842,907 2,615,300 Operating Grants and Contributions: General Government: Legislative and Executive 35,8A3 15,713 220,492 650 Judicial System 0 0 2,090 0 Public Safety: Police 1,591,356 88,002 71,942 38,606 Fire 309,099 254,824 516,173 276,465 Public Health and Social Services 37,651 28,754 98,643 18,694 Street Construction,Maintenance,andRepair 1,062,102 1,245,588 911,220 985,832 Housing and Community Development 25,000 0 14,431 0 Basic Utility Services 23,717 6,000 32,882 2,667 Recreational Activities 106,055 8,773 39,483 12,323 Subtotal-Operating Grants and Contributions 3,190,863 1,647,594 1,907,356 1,335,237 Capital Grants and Contributions: General Government Legislative and Exccutivc 2,951,396 43,688 5,472,832 0 Public Safety: Fire 0 0 0 0 Public Health and Social Services 0 0 0 0 Street Construction,Maintenance,and Repair 16,785 0 930,000 0 Housing and Community Development 335,609 0 0 0 Basic Utility Services 4,382,224 3,693,560 9,467 1,287,054 Recreational Activities 49,637 0 0 0 Subtotal-Capital Grants and Contributions 7,735,651 3,737,248 6,412,299 1,287,054 TatalGovernmentalProgramRevenues $14,237,961 $11,321,988 $10,162,562 $5,237,591 - 54 - 2018 2017 2016 2015 2014 2013 $354,788 $276,352 $344,701 $359,173 $354,858 $840,125 19,135 16,699 19,564 17,080 18,808 20,172 266,786 227,076 227,804 206,834 333,532 2ll,069 285,673 291,958 291,535 284,088 234,018 250,218 52,722 46,885 49,812 46,217 44,774 39,658 106,521 91,515 100,066 93,240 95,899 94,951 71,849 52,589 63,540 55,154 43,901 37,370 255,642 174,702 171,080 130,548 117,458 106,846 1,064,322 1,079,413 1,150,592 995,080 994,881 945,844 2,477,438 2,257,189 2,418,694 2,187,414 2,238,129 2,546,253 4,171 5,030 3,834 5,988 200,435 10,319 94 105 81 115 1,737 1,327 26,125 44,717 27,355 32,454 29,374 32,227 228,981 228,960 230,305 228,841 244,241 231,789 726 826 606 941 727 1,604 726,372 745,911 749,205 763,645 805,157 1,067,022 641 25,643 525 791 25,154 8,917 6,158 4,737 30,886 5,771 6,571 8,19A 9,474 10,402 10,844 4,940 14,615 6,557 1,002,742 1,066,331 1,053,641 1,043,486 1,328,011 1,367,960 4,450,772 0 0 0 4,740 0 ll4,636 224,133 0 0 0 0 1,079 0 0 0 0 0 229,787 1,259,818 0 0 0 0 0 0 0 0 0 0 96,438 110,805 1,271,409 2,194,237 1,682,114 735,758 0 0 0 13,500 0 0 4,892,712 1,594,756 1,271,409 2,207,737 1,686,854 735,758 $8,372,892 $4,918,276 $4,743,744 $5,438,637 $5,252,994 $4,649,971 (continued) - SS - City of Brecksville,Ohio Changes in Net Position(continued) Last Ten Years (Accrual Basis ofAccountin� 2022 2021 2020 2019 Expenses Governmental Activities: General Government: Legislative and Executive $8,212,504 $8,941,766 $8,989,300 $8,736,365 Judicial System 89,182 62,931 168,915 206,352 Public Safety: PoGce 5,317,879 5,196,435 5,232,665 1,543,413 Fire 3,115,344 3,065,057 3,296,619 376,008 Public Health and Social Services 1,085,248 839,300 1,192,513 1,435,281 Street Construction,Maintenance,and Repair 4,087,210 3,603,878 4,421,862 4,871,513 Housing and Community Development 901,426 496,099 938,557 1,334,087 BasicUtilityServices 2,229,433 1,443,134 2,826,513 2,669,147 Recreational Activities 2,047,004 5,984,955 1,600,150 2,485,063 Interest 1,253,730 686,090 917,419 629,735 Total Governmental Activities Expenses 28,338,960 30,319,645 29,584,513 24,286,964 Net(Expense)/Revenue GovernmentalActivities (14,100,999) (18,997,657) (19,421,951) (19,049,373) General Revenues and Other Changes in Net Position Governmental Activities Taxes: Property Taxes Levied For: General Purposes 2,433,794 2,133,425 2,096,864 2,123,999 Fire Department 2,357,515 2,066,553 2,031,160 2,034,107 Road Maintenance 693,388 607,795 597,386 598,266 PoGce Department 208,016 182,355 179,226 179,466 Municipal Income Taxes levied for: General Purposes 17,764,785 18,423,832 17,220,272 18,419,954 CapitalOutlay 2,836,670 3,020,004 3,020,004 2,220,004 Grants and Entitlements not Restricted to Specific Programs 539,245 558,923 1,615,802 1,224,575 Unrestricted Contributions and Donations 250,000 0 0 0 Investment Earnings and Other Interest (561,260) (90,398) 607,016 684,761 Gain on Sale of Capital Assets 0 0 0 0 Miscellaneous 604,453 587,197 1,952,314 1,412,508 Total Governmental Activities General Revenues 27,126,606 27,489,686 29,320,044 28,897,640 SpecialItem 0 0 0 0 Change in Net Position GovernmentalActivities $13,025,607 $8,492,029 $9,898,093 $9,848,267 - 56 - 2018 2017 2016 2015 2014 2013 $11,336,784 $6,962,354 $6,569,538 $6,025,851 $5,586,065 $5,483,124 212,850 160,528 139,516 222,456 129,098 97,176 6,725,624 5,487,502 5,028,825 4,511,969 4,372,780 4,630,560 3,400,741 2,842,061 2,761,668 2,646,098 2,557,376 2,305,771 1,350,715 1,345,241 1,206,467 1,608,683 992,430 1,088,378 4,615,122 4,212,835 3,860,763 3,642,128 4,323,479 4,652,589 1,121,780 1,139,785 852,380 796,624 848,261 795,200 2,620,164 2,799,212 2,260,630 2,242,264 2,402,003 2,044,860 2,521,106 2,362,129 2,173,693 2,430,087 2,137,156 2,129,059 535,387 388,089 297,563 297,843 419,654 400,314 34,440,273 27,699,736 25,151,043 24,424,003 23,768,302 23,627,031 (26,067,381) (22,781,460) (20,407,299) (18,985,366) (18,515,308) (18,977,060) 1,853,125 1,880,670 1,791,350 1,687,653 1,811,854 1,806,589 1,795,019 1,821,727 1,735,188 1,634,162 1,755,072 1,749,910 527,936 535,794 510,360 480,721 516,198 514,678 158,398 160,760 153,115 144,202 154,859 154,253 15,447,729 15,017,616 16,717,227 13,887,608 12,129,661 13,729,250 2,860,004 2,603,334 2,540,000 2,400,000 2,600,000 2,400,000 4ll,203 519,469 434,179 592,098 462,912 1,364,858 0 0 0 0 0 0 430,972 286,340 159,788 144,903 74,550 81,848 0 4,383 65,078 0 0 58,756 2,171,702 653,726 450,162 476,450 418,473 1,060,936 25,656,088 23,483,819 24,556,447 21,447,797 19,923,579 22,921,078 0 0 0 �6,199,s6�) �z,zso,000� o ($411,293) $702,359 $4,149,148 ($3,737,136) ($841,729) $3,944,018 - 57 - City of Brecksville,Ohio Fund Balances, Governmental Funds Last Ten Years (Modified Accrual Basis of Accountin� 2022 2021 2020 2019 General Fund Nonspendable $724,428 $509,335 $573,045 $608,036 Committed 882,242 201,421 600,337 368,230 Assigned 384,827 4,519,566 2,549,000 6,253 Unassigned 14,393,920 11,894,309 11,929,523 11,493,016 Total GeneralFund 16,385,417 17,124,631 15,651,905 12,475,535 All Other Governmental Funds Nonspendable 124,000 119,334 129,237 ll 0,953 Restricted 6,088,898 4,482,190 3,985,952 3,519,624 Committed 6,095,512 5,165,955 3,466,912 2,484,101 Assigned 1,244,030 3,484,269 5,928,252 5,273,600 Unassigned(Deficit) (ll3,869) 0 (1,344,793) (263,256) Total All Other Governmental Funds 13,438,571 13,251,748 12,165,560 11,125,022 Total Governmental Funds $29,823,988 $30,376,379 $27,817,465 $23,600,557 - 58 - 2018 2017 2016 2015 2014 2013 $684,633 $653,650 $683,505 $589,306 $308,324 $258,918 1,610,988 190,043 169,400 142,318 793,372 145,272 13,472 3,406,744 2,460,460 2,704,8ll 2,067,087 559,154 7,516,683 5,563,6ll 6,516,688 5,069,907 5,491,224 8,722,841 9,825,776 9,814,048 9,830,053 8,506,342 8,660,007 9,686,185 146,737 134,448 105,103 107,137 133,664 129,133 2,217,153 8,594,221 2,193,631 2,147,017 2,201,974 2,618,061 2,ll9,784 3,517,135 3,636,653 3,573,849 2,561,420 2,877,955 2,014,987 1,546,073 713,255 713,353 556,085 729,938 �i,z��,so9� o �i,os�,i6s� �i,4ss,s4z� o 0 5,221,152 13,791,877 5,561,479 5,085,814 5,453,143 6,355,087 $15,046,928 $23,605,925 $15,391,532 $13,592,156 $14,113,150 $16,041,272 - 59 - City of Brecksville,Ohio Changes in Fund Balances,Governmental Funds Last Ten Years (Modified Accrual Basis ofAccountin� 2022 2021 2020 2019 Revenues Taxes(1) $26,157,566 $26,692,443 $25,248,802 $25,037,902 Charges for Services 1,760,456 1,351,006 877,611 1,367,465 Licenses and Permits 1,174,465 4,228,469 819,752 768,888 Fines,Forfeitures,and Settlements 125,291 149,118 130,210 246,540 Intergovernmental 4,432,904 2,673,669 3,699,199 2,569,884 Special Assessments 259,248 421,098 423,583 433,965 Investment Earnings and Other Interest (511,446) (110,286) 578,979 647,535 Contributions and Donations 3,573,719 43,568 5,416,587 54,825 Leases 66,844 0 0 0 Rentals 117,473 191,477 187,333 192,506 Miscellaneous 393,434 1,106,036 1,484,915 1,285,355 TotalRevenues 37,549,954 36,746,598 38,866,971 32,604,865 Expenditures Current: General Government: Legislarive and Executive 8,611,259 10,757,310 7,050,415 7,295,921 Judicial System 135,173 155,994 152,815 158,801 PubGc Safety: Police 5,293,965 4,968,967 5,020,631 5,245,953 Fire 2,862,763 2,733,414 2,658,453 2,666,529 Public Health and Social Services 1,076,468 1,016,856 935,186 1,063,834 Street Construction,Maintenance,and Repair 4,359,975 3,691,565 3,878,055 3,410,558 Housing and Community Development 1,196,471 1,011,654 839,243 1,054,064 Basic Utility Services 1,716,030 2,309,513 1,987,223 1,564,067 Recreational Activities 2,476,026 2,003,323 1,612,350 1,934,197 CapitalOutlay 19,824,701 6,307,376 17,849,317 6,740,199 Debt Service: Principal Retirement 14,425,567 11,111,155 1,505,578 1,251,767 Interest 1,417,161 870,615 778,235 621,519 Issuance Costs 575,123 73,546 56,977 169,490 Total Expenditures 63,970,682 47,011,288 44,324,478 33,176,899 Excess ofRevenues Over(Under)Expenditures (26,420,728) (10,264,690) (5,457,507) (572,034) Other Financing Sources(Uses) Sale of Capital Assets 5,689 11,812 4,593 10,027 Gain on Sale of Capital Assets 0 0 0 0 Refunding Bonds Issued 0 0 0 0 General Obligation Bonds Issued 11,855,000 0 0 8,500,000 Tax Increment Financing Revenue Bonds 9,705,000 0 0 0 Bond Anticipation Notes Issued 3,600,000 12,710,000 9,560,000 0 Premium on Issuance of Debt 1,084,006 99,918 109,822 615,636 Discount on Issuance of Debt (388,200) 0 0 0 InceptionofLease 6,842 0 0 0 Transfers In 9,826,914 4,268,397 4,218,716 3,854,418 Transfers Out (9,826,914) (4,268,397) (4,218,716) (3,854,418) TotalOtherFinancingSources(Uses) 25,868,337 12,821,730 9,674,415 9,125,663 SpecialItem 0 0 0 0 Net Change in Fund Balances ($552,391) $2,557,040 $4,216,908 $8,553,629 Debt Service as a Percentage of Noncapital Expendihxres 37.2% 27.1% 11.7% 7.2% (1)Includes All Taxes - S1�- 2018 2017 2016 2015 2014 2013 $22,713,757 $22,875,042 $22,820,621 $19,698,588 $20,648,817 $19,389,630 1,335,769 1,316,865 1,439,170 1,279,220 1,272,274 1,278,936 574,510 497,995 479,977 441,223 342,268 309,326 285,373 227,119 261,776 253,729 368,109 299,141 1,831,409 2,763,597 2,737,344 4,106,032 3,138,374 4,035,155 440,629 477,980 499,052 459,522 510,313 949,306 394,589 264,667 141,358 130,922 64,798 75,100 21,287 23,989 21,036 2Q482 208,943 6,759 0 0 0 0 0 0 195,911 164,758 172,849 137,112 190,031 67,596 2,065,459 524,561 332,601 357,138 321,424 958,110 29,858,693 29,136,573 28,905,784 26,883,968 27,065,351 27,369,059 6,187,449 5,909,340 6,253,951 5,941,020 5,658,375 5,704,562 194,178 139,126 131,893 220,781 123,991 93,327 5,438,717 5,045,643 4,544,489 4,210,229 4,285,136 4,638,749 2,594,276 2,531,150 2,405,316 2,375,886 2,379,842 2,195,067 1,071,758 1,076,825 987,931 949,909 857,569 886,624 3,334,437 3,218,196 3,192,590 3,214,009 3,225,278 3,670,149 968,608 963,735 894,594 812,040 808,555 795,612 1,692,068 1,906,348 2,048,023 1,911,114 1,809,942 1,759,741 1,926,370 1,892,774 1,786,943 1,756,475 1,869,032 1,848,435 13,331,304 6,503,427 3,588,452 4,634,472 4,297,901 3,124,437 1,228,603 1,368,604 1,069,465 1,035,335 1,005,335 963,884 528,801 359,136 282,739 286,576 422,517 394,976 0 186,766 0 35,000 0 0 38,496,569 31,101,070 27,186,386 27,382,846 26,743,473 26,075,563 (8,637,876) (1,964,497) 1,719,398 (498,878) 321,878 1,293,496 50,343 18,ll3 14,900 0 0 18,236 0 0 65,078 0 0 0 0 0 0 2,640,000 0 0 0 9,980,000 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 180,777 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3,499,115 4,153,161 2,468,989 2,272,467 2,232,116 3,189,271 (3,499,115) (4,153,161) (2,468,989) (2,272,467) (2,232,116) (3,189,271) 50,343 10,178,890 79,978 (22,116) 0 244,957 0 0 0 0 (2,250,000) 0 ($8,587,533) $8,214,393 $1,799,376 ($520,994) ($1,928,122) $1,538,453 6.9°/a 72% 6.1°/a 62% 6.7°/a 6.4% - S11 - City of Brecksville, Ohio Assessed Valuation and Estimated Actual T�alues of Taxable Property Last Ten Years Real Property Tangible Personal Property Assessed Value Public Utility Estimated Estimated Tax Residential/ Commercial Actual Assessed Actual Year Agricultural Industrial/PU Value Value Value 2022 $646,828,480 $118,553,130 $2,186,804,600 $23,603,030 $26,821,625 2021 639,519,870 121,639,410 2,174,740,800 22,541,280 25,615,091 2020 550,691,840 109,682,240 1,886,783,086 21,683,560 24,640,409 2019 545,915,280 108,489,980 1,869,729,314 21,159,680 24,045,091 2018 540,608,750 110,240,490 1,859,569,257 20,388,440 23,168,682 2017 482,603,830 100,874,550 1,667,081,086 20,721,470 23,547,125 2016 476,728,340 100,946,970 1,650,500,886 20,463,690 23,254,193 2015 472,551,960 100,539,620 1,637,404,514 19,790,100 22,488,750 2014 453,626,110 124,402,550 1,651,510,457 19,695,230 22,380,943 2013 453,604,210 123,043,670 1,647,565,371 18,850,720 21,421,273 Real property is reappraised cvery six years with a State mandated update of the current market value in the third year following each reappraisal. The assessed value of real property (including public utility real property) is 35 percent of estimated true value. The assessed value of public utility personal property ranges from 25 percent of true value for railroad property to 88 percent for electric transmission and distribution property. The tangible personal property values associated with each year were the values that, when multiplied by the applicable rates, generated the property tax revenue billed in that year. For real properry, the amounts generated by multiplying the assessed values by the applicable rates would be reduced by a 10 percent and a 2 1/2 percent rollback,and homestead exemptions before being billed. Source: Cuyahoga County,Ohio; Counry Fiscal Officer - 512 - Total Estimated Assessed Actual Value Value Ratio Tax Rate $788,984,640 $2,213,626,225 35.64% $8.21 783,700,560 2,200,355,891 35.62 8.21 682,057,640 1,911,423,495 35.68 8.21 675,564,940 1,893,774,405 35.67 8.21 671,237,680 1,882,737,939 35.65 8.21 604,199,850 1,690,628,211 35.74 8.21 598,139,000 1,673,755,079 35.74 8.21 592,881,680 1,659,893,264 35.72 8.21 597,723,890 1,673,891,400 35.71 8.21 595,498,600 1,668,986,644 35.68 8.21 r � Assessed Value of Taxable Property $900,000,000 $800,000,000 � � $700,000,000 - � � � $600,000,000 � � � $500,000,000 $400,000,000 $300,000,000 $200,000,000 $100,000,000 $0 — — 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 ■Res/Ag Comm/Ind Public Utility - 513 - City of Brecksville,Ohio Property Tax Rates-Direct and Overlapping Governments (Per$1,000 of Assessed Yaluation) Last Ten Years 2022 2021 2020 2019 Unvoted Millage Operating $3.5100 $3.5100 $3.5100 $3.5100 Police Pension 0.3000 0.3000 0.3000 0.3000 Total Unvoted Millage 3.8100 3.8100 3.8100 3.8100 Charter Millage 1982 Charter/Fire 3.4000 3.4000 3.4000 3.4000 1987 Charter/Road Improvement 1.0000 1.0000 1.0000 1.0000 Total Charter Millage 4.4000 4.4000 4.4000 4.4000 TotalMillage $8.2100 $8.2100 $8.2100 $8.2100 Overlapping Rates by Taxing District Brecksville-Broadview Heights City School District Residential/Agricultural Real $36.9986 $37.1606 $41.4252 $41.2320 Commercial/Industrial and Public Utility Real 46.4978 46.6584 48.9522 49.4221 General Business and Public Utility Personal 82.6300 82.7900 82.7900 82.6300 Cuyahoga Valley Career Center Residential/Agricultural Real 2.0000 2.0000 2.0000 2.0000 Commercial/Industrial and Public Utility Real 2.0000 2.0000 2.0000 2.0000 General Business and Public Utility Personal 2.0000 2.0000 2.0000 2.0000 Cuyahoga Counry Residential/Agricultural Real 12.2519 12.2552 14.0063 12.8012 Commercial/Industrial and Public Utility Real 13.6331 13.6706 14.3037 13.2303 General Business and Public Utility Personal 14.8500 14.8500 14.8500 14.0500 Special Taxing Districts(1) Residential/Agricultural Real 9.6ll 8 9.0236 103637 93456 Commercial/Industrial and Public Utility Real 10.5106 10.2402 10.7300 9.7042 General Business and Public Utility Personal 11.2800 11.2800 11.2800 10.2800 Source:Cuyahoga Counry Fiscal Officer Note: The rates presented for a particular calendar year are the rates that, when applied to the assessed values presented in the Assessed Value Table,generated to the property tax revenue billed in that year. The City's basic property tax rate may be increased only by a majority vote of the City's residents. Charter millage is consistently applied to all rypes of property as opposed to the voted levies of the overlapping taxing district: Overlapping rates are those of local and county governments that apply to property owners within the City. (1) Metro Parks,Port Authority,Counry Library,Community College - 514- 2018 2017 2016 2015 2014 2013 $3.5100 $3.5100 $3.5100 $3.5100 $3.5100 $3.5100 0.3000 03000 0.3000 03000 03000 0.3000 3.8100 3.8100 3.8100 3.8100 3.8100 3.8100 3.4000 3.4000 3.4000 3.4000 3.4000 3.4000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 4.4000 4.4000 4.4000 4.4000 4.4000 4.4000 $8.2100 $8.2100 $8.2100 $8.2100 $8.2100 $8.2100 $41.4324 $44.8382 $389210 $38.9563 $39.9725 $40.1206 493920 52.2282 46.2177 46.9105 43.8622 43.2930 82.7900 82.8900 77.0000 77.0000 77.0000 77.2000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 2.0000 12.7973 13.9141 13.8802 13.8698 14.0500 14.0500 13.0770 14.0060 14.0124 14.0500 14.0195 13.9495 14.0500 14.0500 14.0500 14.0500 14.0500 14.0500 8.9475 9.7637 9.2408 9.2368 93643 8.4639 9.2104 9.8422 93438 93676 93401 83843 9.8800 9.8800 9.3800 93800 93800 8.4800 �. - S1S - City of Brecksville, Ohio Property Tax Levies And Collections Last Ten Years Percent of Total Current Current Tax Delinquent Total Tax Tax Collections Tax Tax Year Levy Collections To Tax Levy Collections Collections (1) 2022 $6,426,220 $6,236,995 97.06% $119,993 $6,356,988 2021 5,755,678 5,474,566 95.12 92,467 5,567,033 2020 5,661,628 5,421,509 95.76 100,759 5,522,268 2019 5,635,299 5,412,932 96.05 102,676 5,515,608 2018 5,224,588 4,877,119 93.35 128,424 5,005,543 2017 5,161,803 4,774,261 92.49 114,971 4,889,232 2016 4,990,947 4,756,871 95.31 82,375 4,839,246 2015 5,165,687 4,523,952 87.58 87,656 4,611,608 2014 5,219,426 4,532,551 86.84 91,162 4,623,713 2013 5,110,700 4,547,214 88.97 119,432 4,666,646 Source: Cuyahoga County, Ohio; County Fiscal Officer (1) State reimbursement of rollback and homestead exemptions are included. Note: The City is aware of the requirement to report delinquent tax collections by levy year rather than by collection year; however,the County is unable to provide delinquent collections by levy year. We are looking at options to improve this presentation. - 516 - Accumulated Percent of Total Outstanding Percentage of Tax Collections Delinquent Delinquent Taxes To Tax Levy Taxes to Total Tax Levy 98.92% $196,886 3.06°/a 96.72 160,794 2.79 97.54 124,912 2.21 97.88 134,611 2.39 95.81 131,149 2.51 94.72 251,692 4.88 96.96 194,442 3.90 89.27 298,803 5.78 88.59 433,570 831 91.31 299,280 5.86 - 517 - City of Brecksville, Ohio Principal Real Property Taxpayers 2022 and 2013 2022 Percentage of Real Property Real Property Assessed Assessed Taxpayer Valuation Valuation Cleveland Electric Illuminating Company $16,471,160 2.15 % Grand Bay of Brecksville 7,107,380 0.93 Holar Properties,LLC 6,817,310 0.89 Ohio Bell Telephone Company 5,502,290 0.72 PDM Group, Incorporated 5,283,040 0.69 Gateway Association 5,210,040 0.68 Creekview Commons Delaware, LLC 4,427,500 0.58 The Sherwin-Williams Company 4,408,080 0.58 Diamond Properties 4,147,680 0.54 Brecksville Shopping Center 3,630,580 0.47 Total $63,005,060 8.23 % Total Real Property Assessed Valuation $765,381,610 2013 Percentage of Real Property Real Property Assessed Assessed Taxpayer Valuation Valuation Cleveland Electric Illuminating Company $17,012,630 2.95 % The Cleveland Clinic Foundation 13,223,500 2.29 Ohio Bell Telephone Company 8,118,260 1.41 PDM Group,Incorporated 7,249,480 1.26 Grand Bay of Brecksville 6,476,750 1.12 Cleveland Cuyahoga Port Authority 6,336,470 1.10 Gateway Association 4,659,100 0.81 Creekview Commons Delaware, LLC 3,513,200 0.61 Treeline,Incorporated 3,416,520 0.59 MS Brecksville LP 2,712,430 0.47 Total $72,718,340 12.61 % Total Real Property Assessed Valuation $576,647,880 Source: Cuyahoga County Fiscal Officer - 518 - City of Brecksville,Ohio Income Tax Revenue Base and Collecfions Last Ten Years Percentage Percentage Percentage of'Taxes ofTaxes Taxes of'Taxes Tax Tax Total Tax Taxes from from Taxes From from From from Year Rate Collected(1) Withholding Withholding NetProfits Net Profits Individuals Individuals 2022 2.00% $20,500,945 $13,530,624 66.00% $3,177,646 15.50% $3,792,675 18.50% 2021 2.00 21,738,198 14,868,927 68.40 3,695,494 17.00 3,173,777 14.60 2020 2.00 20,334,466 14,500,508 71.31 2,208,323 10.86 3,625,635 17.83 2019 2.00 20,105,526 13,898,950 69.13 2,609,697 12.98 3,596,879 17.89 2018 2.00 18,258,736 12,881,538 70.55 2,227,566 12.20 3,149,632 17.25 2017 2.00 18,533,341 13,071,566 70.53 3,291,521 17.76 2,170,254 IIJ1 2016 2.00 18,526,247 12,901,679 69.64 3,755,270 20.27 1,869,298 10.09 2015 2.00 15,617,083 11,683,140 74.81 1,909,969 12.23 2,023,974 12.96 2014 2.00 16,542,412 12,737,658 77.00 1,985,089 12.00 1,819,665 11.00 2013 2.00 15,253,849 11,591,399 75.99 2,059,270 13.50 1,603,180 10.51 (1)Modified Accrual Basis Income Tax Collections for the Last 10 Years '�25 $20 $15 L R O Q O S�� C O � �5 ' SO 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 ❑Withholding �NetProfits Olndividuals - S19 - City of Brecksville, Ohio Income Tax Filers by Income Level Ta� Years 2021 and 2013 Tax Year 2021 (1)(2) Number of Percent Taxable Percent of Income Range Filers of Filers Income (2) Taxable Income Over$100,000 2,070 4118 % $601,719,612 8416 % 75,001-100,000 470 9.35 41,172,200 5.76 50,001-75,000 573 11.40 36,013,620 5.04 25,001-50,000 636 12.65 23,905,718 3.34 Under 25,000 1,278 25.42 12,172,582 1.70 Total 5,027 100.00 % $714,983,732 100.00 % Tax Year 2013 (2) Number of Percent Taxable Percent of Income Range Filers of Filers Income Taxable Income Over$100,000 1,898 34.96 % $434,424,923 77.52 % 75,001-100,000 533 9.82 46,357,210 8.27 50,001-75,000 611 11.25 37,929,729 6.77 25,001-50,000 729 13.43 26,936,616 4.81 Under 25,000 1,658 30.54 14,729,642 2.63 Total 5,429 100.00 % $560,378,120 100.00 °/o Source: Regional Income Tax Agency Data (1) Information for 2022 was not available. (2) Taxable income of residents of the City. - S20- City of Brecksville,Ohio Ratias of Outstanding Deh[to Total Personal lncome and Deb�Per Capita Last Ten S'ears Tax Inerement Percentage Total General Financing Special Bond Total of Debt Obligation Revenue Assessment Anticipation OPWC Personal Personal Per Year Bonds Bonds Bonds Notes Loans Leases Total Income(I) Income PopulationQ) Capita 2022 $3Q902,768 $9,316,800 $605,000 $3,600,000 $203,023 $5,366 $44,632,957 $778,465,422 5.73% 13,539 $3,297 2021 19,4A8,835 0 86A,806 12,809,918 234,178 2,936 33,404,673 769,327,605 434 13,635 2,450 2020 2Q645,740 0 1,277,612 9,669,822 265,333 0 31,858,507 819,149,114 3.89 13,537 2,353 2019 21,772,644 0 1,6A6,418 0 2A0,911 0 23,739,973 684,102,216 3.47 13,53A 1,754 2018 13,528,900 0 2,075,224 0 317,678 0 15,921,802 695,057,844 2.29 13,522 1,177 2017 14,346,178 0 2,454,031 0 371,281 0 17,171,490 686,80A,360 2.50 13,470 1,275 2016 5,067,679 0 2,907,837 0 424,885 0 8,40Q401 702,293,760 1.20 13,440 625 2015 5,66Q919 0 3,336,643 0 484,350 0 9,4A7,912 670,513,930 1.41 13,543 700 2014 6,235,960 0 3,751,884 0 549,685 0 10,537,529 566,818,000 1.86 13,568 777 2013 6,788,673 0 4,160,821 0 615,020 0 11,564,514 504,512,000 229 13,554 853 City Debt as a Percentage Of Personal Income 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% - - - - - - . - � � 2022 2021 2020 2019 201R 2017 2016 2015 2014 2013 (1)U.S.Census Bureau - 521 - City of Brecksville, Ohio Ratio of General Obligation Bonded Debt to Estimated True T�alue of Taxable Property and Bonded Debt Per Capita Last Ten Years Ratio of Estimated True Bonded Debt to General Value of Estimated True Bonded Obligation Taxable Value of Taxable Debt per Year Bonds (1) Property(2) Property Capita(3) 2022 $30,902,768 $2,213,626,225 1.40% $2,283 2021 19,488,835 2,200,355,891 0.89 1,429 2020 20,645,740 1,911,423,495 1.08 1,525 2019 21,772,644 1,893,774,405 1.15 1,608 2018 13,528,900 1,882,737,939 0.72 1,001 2017 14,346,178 1,690,628,211 0.85 1,065 2016 5,067,679 1,673,755,079 0.30 377 2015 5,660,919 1,659,893,264 034 418 2014 6,235,960 1,673,891,400 0.37 460 2013 6,788,673 1,668,986,644 0.41 501 (1) Although the general obligation bond retirement fund is restricted for debt seroice, it is not specifically restricted to the payment of principal; therefore, these resources are not shown as a deduction from general obligation bonded debt. (2) See S12-S13 for taxable properry value data. (3) See S26 for population data. - S22 - City of Brecksville, Ohio Computation of Direct and Overlapping DebtAttributable to GovernmentalActivities December 31, 2022 Debt Amount of Attributable to Percentage Direct and Governmental Applicable Overlapping Activities to City(1) Debt Direct Debt: City of Brecksville General Obligation Bonds $30,902,768 100.00% $30,902,768 Tax Increment Financing Revenue Bonds 9,316,800 100.00 9,316,800 Special Assessment Bonds 605,000 100.00 605,000 Bond Anticipation Notes 3,600,000 100.00 3,600,000 OPWC Loans 203,023 100.00 203,023 Leases 5,366 100.00 5,366 Total Direct Debt 44,632,957 44,632,957 Overlapping Debt: Payable from Property Taxes: Cuyahoga County Bonds 251,010,600 2.15 5,396,728 Regional Transit Authority Bonds 45,455,990 2.15 977,304 Brecksville-Broadview Heights City School District Bonds 49,874,810 59.18 29,515,913 Payable from Other Sources: Cuyahoga County Revenue Bonds 645,165,802 2.15 13,871,065 Cuyahoga County Loans 185,130,479 2.15 3,980,305 Cuyahoga County Financed Purchases 231,083,108 2.15 4,968,287 Cuyahoga County Leases Payable 12,809,798 2.15 275,411 Brecksville-Broadview Heights City School District Leases Payable 629,761 59.18 372,693 Total Overlapping Debt 1,421,160,348 59,357,704 Total Direct and Overlapping Debt $1,465,793,305 $103,990,661 Source: Office of the Fiscal Officer,Cuyahoga County, Ohio (1) Percentages were determined by dividing the assessed valuation of the overlapping government located within the boundaries of the City by the total assessed valuation of the government. The valuations used were far the 2022 collection year. - S23 - City of Brecksville,Ohio Legal Debt Margin Information Last Ten Years 2022 2021 2020 2019 Overall Debt Limitarion(10.5%of Assessed Valuation) $82,288 $82,288 $71,616 $70,934 Net Debt Within 10.5%Limitations 32,184 30,701 31,342 22,983 Overall Legal Debt Margin Within 10.5% Limitations $50,104 $51,587 $40,274 $47,951 Total net debt applicable to the limit as a percentage of debt limit 39.11% 37.31% 43.76% 32.40% Unvoted Debt Limitation(5.5%of Assessed Valuarion $43,103 $43,103 $37,513 $37,156 Net Debt Within 5.5%Limitarions 32,184 30,701 31,342 22,983 Unvoted Legal Debt Margin Within 5.5%Limitations $10,919 $12,402 $6,171 $14,173 Total net debt applicable to the limit as a percentage of debt limit 74.67% 71.23% 83.55% 61.86% Amounts are expressed in thousands. Legal Debt Margin Calculation for 2022 Overall Margin Unvoted Margin Within 10.5% Within 5.5% Assessed property value $783,700,560 $783,700,560 Overall Debt Limitation(percentage of assessed valuation) $82,288,559 $43,103,531 Gross Indebtedness 43,348,389 43,348,389 Less: Tax Increment Financing Revenue Bonds (9,705,000) (9,705,000) Special Assessment Bonds (605,000) (605,000) OPWC Loans (203,023) (203,023) Leases (5,366) (5,366) General Obligation Bond Retirement Fund Balance (645,306) (645,306) Net Debt Within Limitarions $32,184,694 $32,184,694 Legal Debt Margin Within Limitations $50,103,865 $10,918,837 Note: Under State of Ohio finance law, the City of Brecksville's outstanding general obligation debt should not exceed 10.5 percent of total assessed property value. In addition, the outstanding general obligation debt net of voted debt should not exceed 5.5 percent of total assessed property value. By law, the general obligation debt subject to the limitation is offset by amounts set aside for repaying general obligation bonds. - S24- 2018 2017 2016 2015 2014 2013 $70,480 $63,441 $62,805 $62,253 $62,761 $62,527 16,040 18,421 7,185 7,433 7,977 6,537 $54,440 $45,020 $55,620 $54,820 $54,784 $55,990 22.76% 29.04% 11.44% ll.94% 12.71% 10.45% $36,918 $33,231 $32,898 $32,609 $32,875 $32,752 16,040 18,421 7,185 7,433 7,977 6,537 $20,878 $14,810 $25,713 $25,176 $24,898 $26,215 43.45% 55.43% 21.84% 22.79% 24.26% 19.96% - 525 - City of Brecksville,Ohio Demographic and Economic Statistics Last Ten Years Median Per Unemployment Rate(2) City Total Personal Family Capita Cuyahoga State of Square Year Population(1) Income(1) Income(1) Income(1) County Ohio Miles(3) 2022 13,539 $778,465,422 $115,370 $57,498 3.5% 4.1% 19.58 2021 13,635 769,327,605 108,606 56,423 4.1 4.5 19.58 2020 13,537 819,149,114 108,606 56,423 6.8 5.5 19.57 2019 13,538 684,102,216 105,566 50,532 3.6 4.1 19.57 2018 13,522 695,057,844 101,060 51,402 5.0 4.6 19.57 2017 13,470 686,808,360 98,345 50,988 4.8 4.7 19.57 2016 13,440 702,293,760 100,589 52,254 5.3 4.9 19.57 2015 13,543 670,513,930 93,409 49,510 4.0 4.8 19.57 2014 13,568 566,818,000 95,470 41,776 5.3 4.7 19.57 2013 13,554 504,512,000 111,667 37,222 7.5 7.4 19.57 (1)U.S.Census Bureau (2) Ohio Bureau of Employment Services; U.S. Department of Labor, Bureau of Labor Statistics; Unemployment rate for the City is unavailable. (3)Ciry Records - S26 - City of Brecksville,Ohio Principal Employers Current Year and Nine Years Ago 2022 Percentage of Total City Employer Nature of Activity Withholdings CrossCountry Mortgage, LLC Financial Services 8.89 % Lubrizol Corporation Chemical Technology 7.56 PNC Bank,National Association Banking Services 4.71 Applied Medical Technology,Incorporated Medical Equipment 3.24 Brecksville-Broadview Heights City School District Public Education 2.79 House of LaRose Beverage Distribution 2.65 NVR/Ryan Homes,Incorparated Construction 2.44 Curtiss-Wright Corporation Manufacturing 2.32 AT&T,Incorporated/Ohio Bell Telephone Company Communication Services 2.14 City of Brecksville Municipal Government 1.78 Total 38.52 % 2013 Percentage of Total City Employer Nature of Activity Withholdings PNC Bank,National Association Banking Services 10.44 % Lubrizol Corporation Chemical Technology 7.78 Ohio Bell Telephone Company Communication Services 4.31 AT&T,Incorporated Communicarion Services 2.75 Curtiss-Wright Corporation Manufacturing 2.75 NVR/Ryan Homes, Incorporated Construction 2.49 Clinical Specialties Healthcare 2.27 Brecksville-Broadview Heights City School District Public Education 2.26 CrossCountry Mortgage, LLC Financial Services 2.16 House of LaRose Beverage Distribution 2.06 Total 39.27 % Source: Regional Income Tax Agency. - S27 - City of Brecksville, Ohio Full-Time Equivalent City Government Employees by Function/Program Last Ten Years Function/Program 2022 2021 2020 2019 General Government Council 4.5 4.5 4.5 4.5 Mayor 2.0 1.5 2.0 2.0 Finance 4.0 4.0 4.0 4.0 Income Tax N/A N/A N/A N/A Purchasing 2.0 2.0 3.0 2.0 Legal 1.5 1.5 1.0 1.0 Mayar's Court 1.0 1.5 1.5 1.5 Technology 2.0 2.0 4.0 3.5 Engineering N/A N/A N/A 0.5 Administrative Support 1.0 1.0 1.0 1.0 Public Safety Police 33.0 31.0 34.5 34.0 Fire 24.0 24.0 20.0 24.5 Recreational Activities Community Center 56.0 51.0 24.0 49.5 Senior/Community Services 4.5 4.5 4.0 4.5 Street Construction,Maintenance and Repair Service 46.0 46.5 49.5 54.5 Housing and Community Development Building Inspection 8.0 6.5 6.0 7.0 Basic Utility Services Housekeeping 12.0 ll.5 11.0 ll.5 Totals: 201.5 193.0 170.0 205.5 Method: Using 1.0 for each full-time employee and 0.50 for each part-time and seasonal employee as of December 31. Source: Finance Department - S28 - 2018 2017 2016 2015 2014 2013 4.5 4.5 4.5 4.5 4.5 4.5 2.0 2.0 2.0 2.0 2.0 2.0 4.0 4.0 4.0 4.0 4.0 3.5 N/A N/A N/A N/A 0.5 0.5 2.0 2.0 2.0 2.0 2.0 2.0 1.0 1.0 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5 3.5 3.0 3.0 3.0 3.0 3.0 0.5 0.0 1.0 1.0 1.0 1.0 1.0 3.0 2.0 2.0 1.5 1.5 40.0 41.0 41.5 41.5 42.5 41.5 23.0 26.0 26.0 28.5 27.0 28.0 40.0 31.0 49.0 34.5 36.5 37.5 4.5 5.0 4.5 5.0 5.5 5.0 52.0 42.5 43.0 46.0 44.0 46.0 6.5 6.5 6.5 7.0 6.5 6.0 9.5 10.5 10.5 11.0 11.5 11.5 195.5 183.5 202.5 195.0 195.0 196.5 - S29 - City of Brecksville, Ohio Capital Assets Statistics by Function/Program Last Ten Years Function/Program 2022 2021 2020 2019 General Government Building Department Vehicles 5 3 3 4 Other Department Vehicles 4 4 4 4 Police Stations 1 1 1 1 Square Footage of Building 28,817 28,817 6,577 6,577 Vehicles 23 23 23 23 Fire Stations 1 1 1 1 Square Footage of Building 17,674 17,674 17,674 17,674 Vehicles 11 ll 11 11 Street Construction,Maintenance and Repair Streets (lane miles) 191 191 191 191 Urban Forestry Vehicles 4 4 4 4 Other Public Services Vehicles 70 71 67 63 Recreational Activities Recreation Center 1 1 1 1 Recreation Center Square Footage 75,044 65,000 65,000 65,000 Number of Parks 4 4 4 3 Number of Baseball Diamonds 7 7 7 7 Number of Playgrounds 4 4 4 4 Number of Tennis Courts 3 3 3 3 Number of Soccer Fields 5 5 5 5 Vehicles 2 2 2 4 Housing and Community Development Human Services Center Square Footage 29,000 29,000 29,000 29,000 Vehicles 3 3 4 4 Source: Finance Department - S30- 2018 2017 2016 2015 2014 2013 4 4 4 5 5 4 4 4 4 4 4 5 1 1 1 1 1 1 6,577 6,577 6,577 6,577 6,577 6,577 23 23 22 22 22 22 1 1 1 1 1 1 17,674 17,674 17,674 17,674 17,674 17,674 14 14 13 15 14 14 191 191 191 189 189 189 3 3 3 3 3 3 64 65 64 62 58 59 1 1 1 1 1 1 65,000 65,000 65,000 65,000 65,000 65,000 3 3 3 3 3 3 7 7 7 7 7 6 4 5 5 5 5 5 3 3 3 3 3 3 5 5 5 5 5 5 4 4 4 4 4 4 29,000 29,000 29,000 29,000 29,000 29,000 4 5 5 5 5 5 - S31 - City of Brecksville,Ohio Operating Indicators by FunctionlPr�ogram Last Ten Years Function/Program 2022 2021 2020 2019 Police: Police Expenditures(in thousands) $5,042 $4,946 $4,862 $5,264 Total Arrests 1,374 1,259 991 2,185 Part One Offenses 46 22 60 60 OVI Arrests 40 22 32 22 Prisoners 47 76 68 182 Motor Vehicle Accidents 206 184 147 2ll Calls for Service 12,523 12,180 10,710 15,861 Incidents per Citizen 1.0515 1.0079 0.8871 1.3693 CostperCitizen $372.41 $362.74 $359.16 $388.83 Fire: Fire Expenditures(in thousands) $2,829 $2,742 $2,409 $2,637 Emergency Responses 1,729 1,729 1,484 1,605 Fire Safety Inspections 172 164 110 263 Fire Protection Systems Inspected 88 92 55 31 Building Fire Protection Plans Reviewed 9 8 4 11 Percentage of Business Inspected 30% 28% 21% 40% Number of Community Programs 85 83 79 187 Emergency Reponses per Citizen 0.1277 0.1462 0.1221 014ll Cost per Citizen $208.95 $201.10 $177.96 $194.79 Street Lights Expenditures(in thousands) $100 $103 $101 $102 Cost per Acre of Streetlights $8.00 $8.24 $8.08 $8.16 Public Health Services: Health Department(in thousands) $82 $74 $74 $65 Health Cost per Citizen $6.06 $5.43 $5.47 $4.80 Recreational Activities: Blossom Hill(in thousands) $289 $277 $263 $300 Community Center(in thousands) 2,332 1,987 1,554 1,884 Total Leisure Service Cost(in thousands) $2,621 $2,264 $1,817 $2,184 CostperCitizen $193.59 $166.04 $134.22 $161.32 Community Center Square Feet 75,044 65,000 65,000 65,000 Square Feet per Cirizen 5.54 4.77 4.80 4.80 Total Recreational Revenue(in thousands) $1,346 $956 $671 $1,041 Community Center Members 4,337 3,708 2,410 5,087 Total Participations 144,645 143,986 91,750 155,954 Fitness Class Participations 6,798 6,813 4,274 15,312 Participations per Citizen 10.68 10.56 6.78 11.52 CostperParticipation $18.12 $15.72 $19.80 $14.00 Revenue per Participation $931 $6.64 $731 $6.68 Housing and Community Development: Human Services(in thousands) $841 $799 $749 $828 Cost per Citizen $62.12 $58.60 $5533 $6116 Human Services Square Feet 29,000 29,000 29,000 29,000 Square Feet per Member 16.96 18.13 17.58 16.83 Total Human Services Revenue(in thousands) $103 $90 $104 $78 Human Services Members 1,710 1,600 1,650 1,723 Total Participations 25,550 6,525 6,727 32,300 Participations per Citizen 1.89 0.48 0.50 239 Cost per Member $491.81 $49938 $453.94 $480.56 - S32 - 2018 2017 2016 2015 2014 2013 $5,242 $4,747 $4,218 $4,030 $4,065 $3,916 2,761 2,300 2,716 2,382 2,534 3,308 54 68 79 72 78 74 39 35 45 36 36 50 272 399 555 541 593 857 211 231 243 191 188 152 15,004 15,198 13,515 12,643 12,646 14,349 1.1096 1.3535 1.0056 0.9260 0.9260 1.0510 $387.66 $352.41 $313.84 $295.11 $297.67 $286.76 $2,600 $2,532 $2,432 $2,453 $2,385 $2,355 1,537 1,601 1,623 1,471 1,398 1,246 331 322 132 484 381 337 46 49 47 44 46 78 10 14 16 9 6 3 33% 32% 25% 44% 37% 33% 201 197 190 184 188 172 0.1137 0.1189 0.1208 0.1077 0.1024 0.0912 $192.28 $187.97 $180.95 $179.63 $174.65 $172.42 $103 $]04 $106 $109 $108 $129 $8.24 $830 $8.48 $8.72 $8.64 $10.28 $59 $54 $54 $54 $54 $52 $436 $4.01 $4.02 $3.95 $3.95 $3.84 $284 $281 $264 $285 $261 $279 1,931 1,907 1,845 1,811 1,931 2,054 $2,215 $2,188 $2,109 $2,096 $2,192 $2,333 $163.81 $162.44 $156.92 $153.49 $160.52 $170.89 65,000 65,000 65,000 65,000 65,000 65,000 4.81 4.83 4.84 4.76 4.76 4.76 $1,036 $1,035 $1,110 $933 $1,032 $977 5,689 5,721 5,669 5,814 5,979 6,200 171,844 175,130 172,277 171,917 173,042 173,308 16,817 17,067 18,833 18,602 16,534 22,603 12.71 13.00 12.82 12.59 12.67 12.69 $12.89 $10.89 $10.71 $10.53 $11.16 $11.85 $6.03 $5.91 $6.44 $5.43 $5.96 $5.64 $876 $905 $844 $805 $863 $838 $64.78 $6719 $63.00 $59.00 $63.00 $61.00 29,000 29,000 29,000 29,000 29,000 29,000 1730 21.53 21.48 27.08 19.89 2337 $104 $97 $116 $87 $93 $88 1,676 1,230 1,350 1,071 1,458 1,241 30,349 32,130 31,719 42,202 51,168 50,961 2.24 2.39 236 3.09 3.75 3.73 $522.67 $735.77 $625.19 $751.63 $591.91 $67533 (continued) - S33 - City of Brecksville,Ohio Operatinglndicators by FunctionlPr�ogram(continued) Last Ten Years Function/Program 2022 2021 2020 2019 Housing and Community Development: Planning and Zoning(in thousands) $6 $6 $6 $3 Housing and Building Inspection(in thousands) $632 $545 $504 $582 Cost per Citizen $47.12 $40.41 $37.67 $43.21 Building Permits-Residential 939 980 984 891 Dollar Value of Permits(in thousands) $35,974 $28,462 $32,179 $23,405 Suilding Permits-Commercial 141 101 98 134 Dollar Value of Permits(in thousands) $128,241 $8,695 $56,306 $16,702 Engineering(in thousands) $126 $122 $156 $106 Engineering Reviews New Topo Reviews 26 31 35 26 Revised Topo Reviews 17 29 28 16 Retaining Wall Reviews 6 3 6 5 Plat Reviews 10 7 7 5 Other Reviews 88 100 87 90 Builder Grades 32 49 39 48 Landscaping Grades 9 6 12 13 Total All Reviews 188 225 214 203 Number of Trees Planted 381 245 ll 5 177 Number of Trees Removed 211 96 114 104 Cemetery Internments 61 59 51 52 Grave Purchases/Interment Payments(in thousands) $21 $24 $23 $13 Street Construction,Maintenance and Repair: StreetMaintenance(inthousands) $1,435 $1,382 $1,149 $1,294 Snow andIce Removal(in thousands) $207 $145 $156 $178 Streets(lane miles) 191 191 191 191 Cost per mile of street $8.60 $7.99 $6.83 $7.71 Feet of street per capita 74.49 73.96 69.46 74.49 Asphalt Usage(in tons) 6,550 7,284 5,418 4,892 Asphak Cost per ton $78.00 $65.00 $63.50 $63.50 Salt Usage(in tons) 8,750 6,800 6,100 8,265 Concrete Used(in cubic yards) 4,474 4,145 7,495 4,355 Brush/Grass/Yard Waste Collected(in cubic yard) 1,240 1,745 1,319 1,580 Leaves Collected(in cubic yards) 10,492 10,045 10,190 9,521 General Government: Law(in thousands) $256 $259 $338 $248 Cost per budget dollar $0.0028 $0.0042 $0.0049 $0.0044 Finance(in thousands) $484 $473 $446 $443 Cost per budget dollar $0.0052 $0.0077 $0.0064 $0.0079 Purchasing(in thousands) $199 $266 $233 $212 Costperemployee $987.59 $1,378.24 $1,370.59 $1,031.63 Lands and Buildings(in thousands) $1,462 $1,398 $1,274 $1,166 Costpercitizen $107.98 $102.53 $94.11 $8613 Mayor's Office(in thousands) $270 $261 $227 $196 Council(in thousands) $271 $260 $258 $251 Source: Finance Deparhnent - S34- 2018 2017 2016 2015 2014 2013 $4 $5 $7 $4 $7 $6 $560 $554 $528 $518 $471 $462 $41.71 $41.50 $40.00 $38.00 $35.00 $34.00 966 952 859 761 742 826 $27,773 $22,705 $22,412 $17,387 $12,356 $4,307 150 205 202 183 167 213 $8,794 $18,220 $8,932 $7,826 $12,140 $12,250 $102 $122 $104 $135 $138 $187 37 26 28 31 8 6 38 23 30 36 14 13 6 9 8 3 2 12 6 8 8 3 2 6 93 110 90 73 56 43 57 50 31 25 12 9 9 5 9 8 6 5 246 231 204 179 100 94 126 267 323 2ll 134 163 70 203 240 124 757 98 47 41 61 31 45 64 $21 $14 $24 $16 $19 $38 $1,207 $1,143 $1,074 $1,048 $923 $1,182 $130 $142 $149 $191 $240 $169 191 191 191 189 189 189 $632 $6.73 $6.40 $6.56 $615 $715 74.58 74.87 75.04 73.08 73.08 73.08 8,407 6,090 6,755 8,062 12,481 9,926 $60.00 $57.75 $54.75 $55.00 $55.00 $60.75 8,323 6,501 8,553 10,950 11,745 10,270 1,652 1,141 5,140 6,888 10,934 6,151 2,162 1,450 1,375 1,403 2,657 1,478 8,990 7,705 9,050 8,221 8,440 7,222 $292 $262 $256 $252 $251 $231 $0.0051 $0.0048 $0.0061 $0.0079 $0.0083 $0.0072 $424 $430 $411 $393 $352 $339 $0.0074 $0.0079 $0.0097 $0.0123 $0.0112 $0.0105 $212 $202 $196 $195 $177 $175 $1,084.40 $1,100.82 $967.90 $835.12 $758.03 $747.46 $1,045 $1,054 $1,187 $1,090 $818 $742 $77.28 $78.25 $88.32 $79.82 $59.90 $54.35 $227 $266 $257 $249 $237 $235 $254 $257 $260 $258 $249 $249 - 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